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7/28/2019 62884879-tanishq-jrm-090729172938-phpapp01

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Tanishq: Positioning to Capturethe Indian Womans Heart

Prepared By:


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Indias Gold Jewelry Industry

Indian gold jewelry market ~ $12 Billion

Over 25000 small family owned independentjewelers.

Jewelers were retail stockist. Back end of supply chain was unorganised group

of karigars.

Indian wedding jewelry - ~ 70% of jewelry market

Wedding trousseau consisting of at least 5 pieces~ $7500 (2008 Gold Price)where per capitaincome was ~ $1,089


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The Rising Price ofGold


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Titan Jewelry Watches

Failure in Europe : Underestimation of factorssuch as pricing pressures,high frequency ofnew product introductions,service at a short

notice. Failure in domestic market in 1995: Prices

were too high, watches appeared heavy and

clunky. Consumer thinking : Tanishq was just about

watches.


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Move From Watches To Jewelry

Titans decision to get into studded jewelery

under Tanishq faced challenges:

Changing consumer perception (from 22 karatgold to 18 karat)

Consumer prefernces (from plain gold to

studded jewelry)

From traditional to western designs


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Not For Me Reaction

Boutiques resembled five star hotel lobbies:spacious, intimidating, and exclusive

Limited inventory on display

Designs were too western

A change of pace product rather thanmainstream

Do I need to speak english to go in? Do I have toget dressed up?


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Pioneer The Karatmeter

Invoking the Tata tradition of trust and quality

TV Ads showed how a karatmeter was used

Over 5000 women checked their jewelry

60 % found their pieces to be underkaratage

By 2000, Tanishq hit the 100 crores mark as abrand.

No. of footfalls inrease, created a level of distrustaround jewelers

Retail sales for 2000-01 reached Rs. 166 crores.


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Conflict Over Markup

Tanishqs markup for gold: 15% to 25 %

Local jewelers markup : 5% to 15%

Tanishqs continued losses coupled with with

losses in its international watch initiative

spelled trouble for titan


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Jewelers Tanishq

Vendor or Middlemen Head Karigars

Head Karigars Unorganized Karigars

Unorganized Karigars

Traditional system Vs. Tanishq system


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2001:Disposable income increased

Increased willingness to spend on fashion

items

Tanishq: Premium Indian brand targeting

Modern Indian women

The seven store concept : Traditional looking

jewelry

Tiffanys blue box to tanishq red bag


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2002-2003

Launched Diva: pearls and diamonds in elegant

design

Lightweight gold, lightweight diamond and hoopla

Collection G

Moving Towards MainstreamTarget Customer: Atleast 25 years old, college

educated, a good homemaker, socially versatile,

equally comfortable in both modernand traditional

settings, smart spender(spend extra if given value for

money)


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2004-05: Brand Revaluation

Several new collections were launched

Daytimes

Colors

AarkaAamra

Results were spectacular: Sales exceeded target ofRs.550 crores, reachedRs. 570 crores


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2005: Gold Consumer Market

Segmentation


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2005-06:Going Traditional

Tanishq Paheli line : A Sellout success

Competition with family jewelers who

symbolized tradition Wedding designs were aggressively marketed

Advertising was customized region-wise

Incorporation of Tata name


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The GoldPlus Proposal

In mid 2004, Tanishq team proposed to go after a segment thatTanishq was not serving

This segment only wants Gold , interested in ethnic and local

design, is very price conscious, lives in smaller town locations

Advertising relied on girl next door

Clever and personalized promotions: Quiz com petition ,Engagement parties of couples held at goldplus stores

In six months, Erode broke even with sales of Rs. 10 crore ,Ratlam hit Rs 3 crore


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Tanishq SWOT Analysis

Strengths

Capital

Flexibility

Innovative

Modern Style

Excellent & outstanding

advertisement strategy

Weaknesses

Not for me

Gold Purchase Rituals

Gold Perceptive


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Tanishq SWOT Analysis

Opportunities

TATA Support

The Wedding Market

Globalization

Threats

GoldPlus

Local Jewelers

Gold Significance

Government Regulations


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GoldPlus SWOT Analysis

Strengths

Marketing Strategy

TATA Support

Traditions & Values

Weaknesses

Limited Outlets


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GoldPlus SWOT Analysis

Opportunities

Outlets

The Rural Market

Threats

Tanishq

Government Regualtions

Design Stealers

Vision of Undisciplined Boy!


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Problem Analysis

Heavy Competition

Failure of Gold watches

Failure to tap wedding Market

Not for Me perception

Internal conflicts between Tanishq and Goldplus


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Successful Strategies

Complete positioning

Introduction of studded Jewelery

Very high promotion

Pioneering the Karatmeter

Elimination of traditional middlemen


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Graph showing the total sales ofTanishq

from 1998-2007:


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Recommendations

Tanishq & GoldPlus, complimenteach other

Understand their market territories & Characteristics

Capitalize their strengths

Cross Branding the market to own a larger share

Going Global and teaming up with Indian entertainment

products internationally

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