market research report on Tanishq

Project Report

On

“Buying behaviour

of gold

with regards to

Tanisq ”

SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENT OF P.G.D.M. PROGRAM

Submitted To:

Professor Devang Desai

Submitted By:

Jay Desai (28)

Grishma Tandel (20)

Jairaj Tailor (27)

Rohan Shahi (49)

2nd Year P.G.D.M. (3rd Semester)

G.I.D.C. Rofel Business School, Vapi.

Academic Year:

2009-2010

Submission On: 20th November, 2009

Buying behaviour of Gold

DECLARATION

Marketing Research GIDC ROFEL Business School


This project report entitled study of customer’s perception has been submitted to G.I.D.C Rofel Business School, Vapi in partial fulfilment of P.G.D.M. Degree. Here by we, undersign that this project report has been completed by us under the guidance of Professor Devang Desai (Faculty: Marketing Research, G.I.D.C. Rofel Business School, Vapi)

Study of this Project Report is entirely result of our own efforts and research is original in nature. This Project Report is not submitted either in part or whole to any other institute for any other degree.

Place: Vapi

Date: 20th November, 2009

Grishma Tandel

Jairaj tailor

Jay Desai

Rohan Shahi



ACKNOWLEDGEMENT

We would like to express our gratitude to:



(i) Professor Devang Desai, for giving us a chance to learn things in a practical and innovative way, and gain some experience for the same. We would also like to thank her for all her support and to encourage us and motivate us to learn new things and in different ways.

(ii) The group members for showing their co-ordination for the project.

We are greatly thankful to all the advisors who helped us knowingly and for giving information and interest in report.

Thanking You,

Grishma Tandel

Jairaj tailor

Jay Desai

Rohan Shahi



ITENARY

F Executive SummaryF Introduction

i) Tanishq profile

F About The Research



i) Purpose Of The Researchii) Problem Of The Researchiii) Objective Of The Researchiv) Limitations Of The Researchv) Significance Of The Research

F Samplei) Sampling Frameii) Sampling Unitiii) Sample Sizeiv) Sample Size Selection

F Research Methodologyi) Research Tools

a) Exploratory Research Questionnaire Survey

b) Descriptive Research

F Detailed FindingsF ConclusionF Recommendation & ConclusionF Bibliography



EXECUTIVE SUMMARY



INTRODUCTION

TANISHQ PROFILE

Evolution of Tanishq

Titan came into existence in July 1984, when the Tata Group joined hands with the Tamil Nadu Industrial Development Corporation (TIDCO) to make a foray into the watch industry.

Titan started manufacturing jewellery watches and jewellery in 1994. It set up its fully integrated Rs. 400 million-jewellery plant in Hosur. The plant had the capacity to manufacture four



tonnes of gold in a year. Titan launched these products under the brand name of Tanishq, in 1995. The name Tanishq, a blend of two words, 'tan' (body) and 'ishq' (love), was coined by Xerxes Desai, the Vice-Chairman and Managing Director of Titan.To change its image from a watch manufacturer to a fashion accessories manufacturer, Titan was renamed Titan Industries Ltd. in 1995. Titan scaled the capacity of its Hosur plant to 4.18 million units in 1996 to meet the domestic and international demand. From the late 1990s, Titan's commitment to the jewellery business increased.

When Titan launched Tanishq in 1995, the jewellery industry in India valued at Rs 40,000 crore was mostly unorganized, with around 3.5 lakh players. Before 1992, only the Metal and Mineral Trading Corporation and the State Bank of India were allowed to import gold. In 1992, as part of economic liberalization, the government abolished the Gold Control Act of 1962, allowing free import of gold. In 1993, private companies were allowed to enter the hitherto restricted gold and diamond mining industry. Foreign investors were allowed to hold up to 50% equity in mining ventures.



Growth of Tanishq

2000 2001 2002 2003 2004 2005 2006 2007 20080

5000

10000

15000

20000

25000

Revenue in million Rupees



SWOT ANALYSIS

STRENGTH

Purity (karat meter)

Distribution network and

retailing store

Award winning designs

Diversity in jewellery

gold/diamond/platinum

Competitive prices

OPPORTUNITIES

Global markets

Low cost jewellery

Customized jewellery

designs

Concentrate on Gen-X by

having trendy jewellery

Expand retail stores

WEAKNESS

Capture Rs 70,000-crore

Escalated gold costs lower

margins

THREATS

Competition

Lack of Skilled workers

Gold not seen as s source

of investment. (Luxury is

needed).

Purity of jwellrey through karat meter is still the sign of total purity.



Distribution network and retailing store are in place for the company with

130 stores countrywide. Mind boggling/award winning designs have come

for the company. Diversity in jewellery gold/diamond/platinum enhances

the product range of the company. We also have competitive prices for

the entire product ranges as compared to the competitors.

Weaknesses

Capture Rs 70,000-crore Indian jewellery market. Tanishq comprises a

small share of the overall Rs 70,000-crore Indian jewellery market and

hence it needs to increase its market share in this huge industry. Escalated

gold costs has caused lower margins is to push sales as much as possible.

Opportunities

Global markets like USA needs to be looked at. Low cost and easy to

wear jewellery should be further promoted. Customized jewellery designs

should provided to the customers. Concentrate on Gen-X by having

trendy jewellery. Expand retail stores in India to further increase reach.

Threats

Competition from local jewellers all over India. Lack of Skilled workers

in jewellery industry. Gold is no longer seen as source of investment.



People are more concerned about design and luxury.

Three Major Products Of Tanishq In GOLD

Zoya



Secrets of the Egyptian pharaohs masked with the mystery of the comos;

Oriental art embellished with occidental architecture

Fashion Earrings

The Fashion earring collection; has a ranged of over 300 exclusive

designs

Wedding Collection

The bride blushes



ABOUT THE RESEARCH

THE PURPOSE OF THE RESEARCH



The basic purpose of this research is to find the buying behaviour of people of vapi toward gold.

PROBLEM



To find out problem is the first stage of the research process. It represents translating the management problem into research problem. It is right said, “A problem well defined is half – solved.”

Tanishq is one of the store who provides branded gold & have brand name.

Inspite of product quality , services tanishq provides why do still prefer buying gold from local retailers.

.

OBJECTIVES

The objectives of the study are as follows:



1) The objective of study was to find the actual reason why people are not going to Tanishq

2) To find what they like & dislike about Tanishq.3) On the basis of in depth interview we got 6 criteria in which we

could measure the attitude of people towards Tanishq.

Limitations



The survey was conducted within the limited time frame;

so few shortcoming may be expected.

The respondent’s personal bias may be another factor,

which is uncontrollable.

The finding of the survey is strictly based on the responses

of the respondents. It is difficult to find the euthenics be

true, so we are assuming them to be true.

It was very difficult to explain the respondents about how

to fill the questionnaire & it took time for data collection.

Hypothesis

a) Price doesnot affect the buying of gold.

b) Quality of gold does not effect the buying of gold



c) Service does not effect the buying of gold

d) Pattern does not effect buying of gold

e) Location of store does not effect buying behavior of

gold.

f) Ambiance of store effect buying behavior of gold.



VIEW ABOUT THE TOPIC

SAMPLE

Sampling Frame:

A Sampling frame consists of a list of item

from which the sample is to be drawn.



The sample frame for this research constitutes

all the customers who have visited Tanishq store for

purchasing gold.

Sampling Unit:

A decision has to be taken concerning a

sampling unit before selecting sample sampling unit

may be a geographical one, a construction unit, a

social unit or it may be an individual.

The sample unit for this research constitutes

the organization that is Tanishq only dealer in vapi

Sample Size:

The sample size of our research was 150 but

only 121 people have visited tanishq store.

Sample Size Selection:



sample size was selected on the

basis of the 3 factors.

a) It was difficult to locate the customer

who have visited to tanishq.

b) The respondents were not much

educated so it was difficult to make them

understand about the questionnaire.

c) People were not easily available outside

Tanishq.



RESEARCH METHODOLOGY

Research Tools:

The research tool used for this research is

PRIMARY DATA

In primary data the following research design

is being followed:



i) Exploratory Research:

Questionnaire Survey (Sample Size –

150)

ii) Descriptive Research:

On the basis of the questionnaire

survey, the analysis is done in order to

find out the reason why people are not

visiting Tanishq

We have used 2 types of reaserch design they are

a) Exploratory researchb) Descriptive research

Exploratary research because we were not knowing the actual problem faced by tanishq. So for that we did an Indepth interview of 3 person to find what are the major findings & difficulties are faced by them.

We did Interview of

a) Mr Bhaskar who is the senior sales manger of tanishq of south Gujarat region.



In the interview we asked him diifrent question regarding the sales & their way of operation & different aspects about tanishq

From the answers given by Mr Bhaskar we found that major reason why people are not turning out towards Tanishq is because of Price a bit higher & pattern availability in tanishq . he also told us the major reason why people are coming to tanishq is the quality of gold & services provided by them. He also said that people who loves the ambiance of store may affect the buying decision.

Then we interviewed Mr Azad the owner of Payal jwellers of vapi town & we asked him the same questions what we asked Mr. Bhaskar.

We found that

a) Major people who buy gold from there are their regular customers from long time

b) The people have trust on the purity of goldc) He also said that people are having bad experience of

going to tanishq as the price of gold is more than what they are paying to normal retailers.

d) He also said that people of vapi are more price councius & not quality concius.

e) He also said that patterns which are available with them are the same or much more compared to tanishq people.

From the detailed interview of these 2 people we thaught that major reasons which can effect the purchase decision of people buying gold are

1) Price2) Quality3) Service4) Availability of pattern5) Proximity to market6) Ambiance of store



DETAILED FINDINGS

Over All Sample size

81%

19%

Sample Size

Visited Not visited



The sample was 150 but out of which 29 people dint

went to Tanishq for buying of gold. So our sample size

came to 121.

Segmentation According to Gender

male; 56

female; 65malefemale



Out of 121 there were 65 female that constitute 54% of

total sample & rest are male they are 56 which

contributes 46% of total sample.

Annual income of Respondents

5000-10000

10000-20000

20000-30000

30000 & Above



The respondents average income lies from 5000 to

30000 & above so respondents were

a) 5000 – 10000 = 6

b) 10000 – 20000 = 11

c) 20000 – 30000 = 18

d) 30000 & above = 86

People who said they visit Tanishq & again goes for

repurchase

Yes; 28

No; 93



The above charts gives us the detail of people who

visits Tanishq for repurchase.

Hypothesis Testing

X2 = ∑ (o-e)2/ e



1)Price does not affect the buying of gold.

PriceParticular 1 2 3 4 5 Total

1 3 12 11 4 0 30

2 8 15 31 12 0 66

3 1 0 6 7 4 18

4 0 0 1 1 2 4

5 0 0 0 1 2 3

Total 12 27 49 25 8 121Observed expected o-e 2(o-e) 2(o-e)/e3 2.97 0.03 0.0009 0.00030312 6.69 5.31 28.1961 4.21466411 12.14 -1.14 1.2996 0.1070514 6.19 -2.19 4.7961 0.7748140 1.98 -1.98 3.9204 1.988 6.54 1.46 2.1316 0.32593315 14.72 0.28 0.0784 0.00532631 26.2 4.8 23.04 0.87938912 13.63 -1.63 2.6569 0.194930 4.36 -4.36 19.0096 4.361 1.78 -0.78 0.6084 0.3417980 4.01 -4.01 16.0801 4.016 7.28 -1.28 1.6384 0.2250557 3.71 3.29 10.8241 2.9175474 1.19 2.81 7.8961 6.635378



0 0.39 -0.39 0.1521 0.390 0.89 -0.89 0.7921 0.891 1.61 -0.61 0.3721 0.2311181 0.82 0.18 0.0324 0.0395122 0.26 1.74 3.0276 11.644620 0.29 -0.29 0.0841 0.290 0.66 -0.66 0.4356 0.660 1.21 -1.21 1.4641 1.211 0.61 0.39 0.1521 0.2493442 0.19 1.81 3.2761 17.24263Total 59.8194

The hypothesis of these question is that the price does not

effect the buying behavior of consumer that is Ho.

So from the calculation we got the value of H0 as 59.8149

So when compared to tabulated value of the number that is (r-

1)*(c-1) gives us the tabulated value so for my question (5-

1)*(5-1) = 16 is the degree of freedom.

The value for the 16 is 26.3

So Ho>H1 so hypothesis is rejected.



2) Quality of gold does not effect the buying of gold

QualityParticular 1 2 3 4 5 total1 3 2 2 0 0 72 1 4 5 2 0 123 2 10 20 11 3 464 6 9 18 8 5 465 0 2 4 4 0 10Total 12 27 49 25 8 121

Observed expected o-e 2(o-e) 2(o-e)/e3 0.69 2.31 5.3361 7.7334782 1.56 0.44 0.1936 0.1241032 2.83 -0.83 0.6889 0.2434280 1.44 -1.44 2.0736 1.440 0.46 -0.46 0.2116 0.461 1.19 -0.19 0.0361 0.0303364 2.67 1.33 1.7689 0.6625095 4.85 0.15 0.0225 0.0046392 2.47 -0.47 0.2209 0.0894330 0.79 -0.79 0.6241 0.792 4.56 -2.56 6.5536 1.43719310 10.26 -0.26 0.0676 0.00658920 18.62 1.38 1.9044 0.10227711 9.5 1.5 2.25 0.236842



3 3.04 -0.04 0.0016 0.0005266 4.56 1.44 2.0736 0.4547379 10.26 -1.26 1.5876 0.15473718 18.62 -0.62 0.3844 0.0206448 9.5 -1.5 2.25 0.2368425 3.04 1.96 3.8416 1.2636840 0.99 -0.99 0.9801 0.992 2.23 -0.23 0.0529 0.0237224 4.04 -0.04 0.0016 0.0003964 2.06 1.94 3.7636 1.826990 0.66 -0.66 0.4356 0.66Total 18.99311

The hypothesis of these question is that the Quality does not







So Ho<H1 so hypothesis is accepted.

So Quality does matter in buying gold.



3) Service does not affect buying behavior of consumer.

Particular 1 2 3 4 5 total1 0 0 1 0 0 12 1 0 0 0 0 13 1 6 5 8 1 214 6 15 33 10 6 705 4 6 10 7 1 28Total 12 27 49 25 8 121

ServiceObserved expected o-e 2(o-e) 2(o-e)/e0 0.09 -0.09 0.0081 0.090 0.22 -0.22 0.0484 0.221 0.4 0.6 0.36 0.90 0.2 -0.2 0.04 0.20 0.06 -0.06 0.0036 0.061 0.09 0.91 0.8281 9.2011110 0.22 -0.22 0.0484 0.220 0.4 -0.4 0.16 0.40 0.2 -0.2 0.04 0.20 0.06 -0.06 0.0036 0.061 2.08 -1.08 1.1664 0.5607696 4.68 1.32 1.7424 0.3723085 8.5 -3.5 12.25 1.4411768 4.33 3.67 13.4689 3.11061 1.3 -0.3 0.09 0.0692316 6.94 -0.94 0.8836 0.12732



15 15.62 -0.62 0.3844 0.02460933 18.35 14.65 214.6225 11.6960510 14.46 -4.46 19.8916 1.3756296 4.63 1.37 1.8769 0.4053784 2.78 1.22 1.4884 0.5353966 6.25 -0.25 0.0625 0.0110 11.34 -1.34 1.7956 0.1583427 5.79 1.21 1.4641 0.2528671 1.85 -0.85 0.7225 0.390541

32.08133

The hypothesis of these question is that the service does not








So service does matter in buying gold.



4 ) Pattern does not effect effect buying behavior

of consumers.


PATTERNObserved expected o-e 2(o-e) 2(o-e)/e0 0.65 -0.65 0.4225 0.652 1.34 0.66 0.4356 0.3250754 0.45 3.55 12.6025 28.005560 1.25 -1.25 1.5625 1.250 0.35 -0.35 0.1225 0.355 4.19 0.81 0.6561 0.1565877 8.7 -1.7 2.89 0.33218416 2.9 13.1 171.61 59.175868 8.06 -0.06 0.0036 0.0004473 2.26 0.74 0.5476 0.2423013 4.19 -1.19 1.4161 0.33797111 8.7 2.3 5.29 0.60804616 2.9 13.1 171.61 59.175867 8.06 -1.06 1.1236 0.1394042 2.26 -0.26 0.0676 0.0299123 2.15 0.85 0.7225 0.3360476 4.46 1.54 2.3716 0.5317494 1.49 2.51 6.3001 4.2282556 4.13 1.87 3.4969 0.8467071 1.16 -0.16 0.0256 0.022069



2 1.83 0.17 0.0289 0.0157921 3.79 -2.79 7.7841 2.0538529 1.26 7.74 59.9076 47.545714 3.51 0.49 0.2401 0.0684051 0.98 0.02 0.0004 0.000408

206.4282

4) Pattern does not effect buying behavior of gold.

The hypothesis of these question is that the pattern does not


So from the calculation we got the value of H0 206.4282






So it has been analyzed that Tanishq has good variety of

pattern.



5) Proximity does not affect buying of gold.


ProximityObserved expected o-e 2(o-e) 2(o-e)/e2 0.99 1.01 1.0201 1.0304040 2.23 -2.23 4.9729 2.236 3.88 2.12 4.4944 1.1583512 2.07 -0.07 0.0049 0.0023670 0.67 -0.67 0.4489 0.672 0.79 1.21 1.4641 1.8532912 0.79 1.21 1.4641 1.8532913 3.11 -0.11 0.0121 0.0038910 1.65 -1.65 2.7225 1.651 0.53 0.47 0.2209 0.4167924 3.97 0.03 0.0009 0.0002276 8.93 -2.93 8.5849 0.96135518 15.54 2.46 6.0516 0.3894218 8.27 -0.27 0.0729 0.0088154 2.64 1.36 1.8496 0.7006063 3.37 -0.37 0.1369 0.0406237 7.59 -0.59 0.3481 0.04586314 13.21 0.79 0.6241 0.0472459 7.02 1.98 3.9204 0.5584621 2.25 -1.25 1.5625 0.6944441 2.88 -1.88 3.5344 1.22722212 6.47 5.53 30.5809 4.7265698 11.26 -3.26 10.6276 0.9438376 5.99 0.01 1E-04 1.67E-052 1.92 0.08 0.0064 0.003333Total 21.21642



The hypothesis of these question is that the proximity does not










6) Ambiance does not affect buying behavior of gold.

Particular 1 2 3 4 5 total

1 1 1 0 4 1 7

2 0 2 6 2 0 10

3 5 6 11 6 2 30

4 3 9 17 8 11 38

5 4 9 14 5 4 36Total 13 27 48 25 8 121

Observed Expected o-e 2(o-e) 2(o-e)/e1 0.75 0.25 0.0625 0.0833331 1.56 -0.56 0.3136 0.2010260 2.78 -2.78 7.7284 2.784 1.45 2.55 6.5025 4.4844831 0.46 0.54 0.2916 0.6339130 1.07 -1.07 1.1449 1.072 2.23 -0.23 0.0529 0.0237226 3.97 2.03 4.1209 1.038012 2.07 -0.07 0.0049 0.0023670 0.66 -0.66 0.4356 0.665 3.22 1.78 3.1684 0.9839756 6.69 -0.69 0.4761 0.07116611 11.9 -0.9 0.81 0.0680676 6.2 -0.2 0.04 0.0064522 1.98 0.02 0.0004 0.0002023 4.08 -1.08 1.1664 0.2858829 8.48 0.52 0.2704 0.03188717 15.07 1.93 3.7249 0.2471738 7.85 0.15 0.0225 0.0028661 2.51 -1.51 2.2801 0.9084064 3.87 0.13 0.0169 0.0043679 8.03 0.97 0.9409 0.11717314 14.28 -0.28 0.0784 0.005495 7.44 -2.44 5.9536 0.8002154 2.38 1.62 2.6244 1.102689Total 15.61287



The hypothesis of these question is that the proximity does not










Questionnaire

GIDC ROFEL BUSINESS SCHOOL

Dear Sir/Madam

We are the students of 2nd Year PGDM Course of GIDC ROFEL BUSINESS SCHOOL (VAPI). As a part of our research study we are conducting a survey regarding the perception of people regarding the purchase of gold from different organized & Un organized Retailers.

Guidelines for filling the form:-

1) Please check the box wherever required.2) Only 1 check per question.

Q 1 ) Name:-________________________________________________________

Q 2) Gender - male female

Q 3) Age :- _________________

Q 4) Occupation: - Service Business Others

Others:-__________________________

Q 5) Monthly average INCOME?

5000-10000 10000-20000 20000-30000 30000 & above



Q 6) how often you visit jewellery store?

Once a month once a year

On Occasion

Q 7) You Buy jewellery from

Place Store Name

Vapi ___________________

Valsad ___________________

Surat ___________________

Bombay ___________________

Others ___________________

Q 8) do you buy jewellery from same store every time ?

Yes No

If Yes/No Why?___________________________________________________________

Q 9 ) Rate your jewellery store from 1 to 5

where 1 is the WORST & 5 is the BEST

a) Product are worth price you pay ?

b) Purity & quality of gold ?



c) The service you get in the store ?

d) The Number of patterns available ?

e) Proximity to market ?

f) Ambiance of Store ?

Q 10) Are You aware about tanishq showroom opened in vapi?

Yes No

Q 11) How did you come to know about Tanishq?

TV News Paper Hoardings

Pamphlets Friends/relatives Others

Q 12) Have you visited Tanishq Store?

Yes No

Q 13) Rate Tanishq On flowing Criteria Given below

Particular V.Good Good Average Bad V.bada) Priceb) Purity & Quality of Goldc) Service Offeredd) Patterns Availablee) Location of Storef) Ambiance of store

Q 14) During Re-Purchase you often go to Tanishq?

Yes No



Q 15) Would you recommend others for Buying Tanishq Products?

Yes No

Q 16) Rate tanishq on over all basis?

Particular V.Good Good Average Bad V.badTanishq As a Store

Thank You



FINDINGS



On the basis of chi-square test the relation between the

variables are significant & few are not significant.

Variables which were significant in the research & which affects

the buying behavior of gold are

a) Because of price people are not visiting Tanishq.

b) People are happy with the quality of Tanishq & they go

to Tanishq only because the purity & quality of gold.

c) The people also visit Tanishq because they provide

better services then the other retailers.

d) The pattern are also major factor because of which

people does not prefer Tanishq.

e) The people says that the location of store is not

affecting them to visit Tanishq.

f) People are not affected by the ambiance of store

From these we can conclude that people are more sencisitve

towards price , Quality & availability of pattern. If they find

these 3 things ok & they fill that this is what they wanted they

will buy from there only.

For people of vapi ambiance , proximity to market & service are

less important.



Recommendation

&

Conclusion

Conclusion



People are more price conscious & they feel that the price in

Tanishq are more than what the normal retailers have. They

also feel that the quality they get is much higher than the

quality what the normal retailers give. They also found that the

patterns available are lesser than what they get in the normal

retail store. They also are service oriented so they are more

attracted because of service they get. People are not affected

with the ambiance of the shop.

Recommendation

We would recommend Tanishq following things

a) The making charge is affecting their sales so they

should cut down their prices.

b) The patterns are comparative less so they should

provide more number of patterns & also should increase

their market share by bringing more innovative scheme

& loyalty programs.

c) People are more service conscious so they can target

young business man & young professional as they are

now more in investing money in gold.

d) Gold price are increasing day by day so they should

increase their sales by selling biscuits of gold rather

than selling more of ornaments.



Bibliography

Tanishq Website

Tanishq Outlet

Marketing Research TextBook



THANK YOU


market research report on Tanishq

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