Marketing ManagementProject Report

Submitted To:A.N Bhattacharya

Submitted By:Ahmad Nadeem Ankur Sharma Gaurav Pathak Mohsin Ajaz Jitendra Sharma

AcknowledgementWe are extremely thankful to Mr. A.N Bhattacharya for giving us the opportunity to undertake this project in Marketing Management and for his overall support, valuable guidance, astute judgment, constructive criticism and an eye for perfection without which this project would not have been in its present shape.

And last but not the least we are also thankful to all our group members who made valuable contributions and constructive feedback towards the completion of this project.

Introduction

An Indian Brand, which can make big in the global market, is Tanishq from Tata Group of Industries. Tanishq is India's largest, most desirable and fastest growing jewellery brand in India. Tanishq today is India's most aspirational fine jewellery brand with an exquisite range of gold jewellery studded with diamonds or colored gems and a wide range of equally spectacular jewellery in 22Kt pure gold. Exquisite platinum jewellery and designer silverware is also part of the product range. Though they faced many difficulties in the early stages for about six years, they then came with up with good strategies. The Tanishq strategy for the coming couple of years relies on two things: Increasing penetration in the domestic markets. Going abroad in order to diversify its revenue portfolio.

To push penetration in other markets, Tanishq will use the shop-in-shop concept that it already follows in 50 stores across different West Asian markets. This reduces distribution costs. Also, for the consumer it remains a Tanishq store and helps us get a foot in to the market. Their main core competency is in designing a wide range of products. They were the first to come up with the idea of carat meter, which proves the quality of the gold, to win the trust of the customer.

Evolution of TanishqTitan 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 then ViceChairman 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.

Competitors D'damas DiamondsD'damas Diamonds are part of Gitanjali Digico Group and one of the earliest diamond houses established in India in 1966. On the

present day D'damas Diamonds offer highly modernized diamond cutting and polishing facilities at five locations in India. D'damas Diamonds claim to promote a range of emotions through their collections.

AsmiAsmi, one of the leading diamond brands of the country, was launched, In 2002 by The Diamond Trading Company Ltd, (DTC). The Asmi diamond Jewellery Collection is crafted to beautifully compliment and complete her. Asmi caters to the women of substance & satisfies her mind for rewards recognition, evolving to suite her style & Personality. The brand has been endorsed by various celebrities such as Kajol, Mandira Bedi & Perizad. All these women epitomize the different strengths. An Asmi woman is closely identifies with free-spirited, goal-oriented & with an inner fire.

CarbonIn early 1991, the Bangalore based Peakok Jewellery Pvt. Ltd., (Peakok) was incorporated and Mahesh Rao (Rao) was appointed director. Peakok realized that the Indian consumer's relationship with gold jewellery would grow beyond an investment need towards a lifestyle and personality statement. In 1996, within the Peakok fold a new brand of 18-carat gold-based jewellery called Carbon was

launched. In 2000-01 Carbon's focus had always been to move jewellery from the vault to the dressing table and bring the selling of jewellery out of heavily guarded jewellery stores. This was achieved by persuading a few lifestyle stores to add branded jewellery to their vast array of products. Most of its designs were contributed by students at the National Institute of Fashion Technology (NIFT) through the diploma programme which the company sponsored. In addition, Peakok's team of six designers, (headed by Rajeswari Iyer, an alumnus of a German design school who had worked in the U.K., Germany and India) turned out around 180 to 200 styles in a year, with 75 designs per style. At any point in time, there are around 600 designs of Carbon on sale. The creation, manufacture and marketing of Carbon was different from the making and selling of traditional jewellery. It is made available at `shop-in-shop' outlets in large lifestyle stores (such as Shoppers Stop, Ebony, Globus, The Bombay Store, Lifestyle and Taj Khazana) and some premium boutiques (such as the Helvetica in Chennai).Carbon products were priced between Rs. 2,750 and Rs.20,000 per piece. While the cost of traditional jewellery was negotiable, the cost of Carbon items was fixed and nationally uniform. The brand is available at 50 outlets in 23 cities.

Gili Gili launched a collection of traditional Indian ornaments made of 18-carat gold. In1999, the Gili Gold range was introduced. This range included rings, pendants,earrings, necklaces and bangles made of 24-carat gold. All Gili products came with a guarantee of diamond and gold quality.

Gili distributed its jewellery priced between Rs. 500 and Rs. 40,000 through lifestyle and department stores across the country to increase accessibility among its target segment, the 15 to 30 age group. Gili distributed its jewellery priced between Rs. 500 and Rs. 40,000 through lifestyle and department stores across the country to increase accessibility among its target segment, the 15 to 30 age group. The collection was promoted at college campuses with banners, pamphlets and afew advertisements targeted at teens. Gili soon realized that just pushing its product was not enough; it also had to customize its products for special occasions. Following this, it launched a Diamond Heart Collection specially designed for Valentine's Day. This collection consisting of tiny, heart-shaped diamond jewellery was well received by teens. Special packaging, catchy advertising and extensive press coverage contributed to the success of the collection. Gili also made special promotional offers during festive seasons like Christmas and Diwali. Having captured the low price point market of Rs.2000 to Rs.10, 000, the company is focused on penetrating the premium market of customized jewellery. For this Gitanjali jewels opened a jewellery salon, Gianti, to provide customized jewellery to clients in India.

4 Ps of MarketingPRODUCT

PRODUCT

VARIETY

Tanishq today is India's most aspirational fine jewellery brand with an exquisite range of gold jewellery studded with diamonds or colored gems and a wide range of equally spectacular jewellery in 22Kt pure gold. Tanishq designs and manufactures jewellery that is breathtaking, contemporary and yet has a tint of tradition. It produces 22 carat pure gold earrings that come in various shapes, sizes and designs. Some earrings are embedded with precious stones or colour gemstones. These jewellery sets are overwhelming and could prove to be apt for occasions such as marriage, festivities etc. Furthermore, they also make bangles, chains, nose pins, pendants, finger rings, Mangal Sutras etc. They also produce products made from silver such as deity idols etc. Recently,Tanishq has started producing diamond jewellery that are affordable and stunning. The diamond jewellery include collections such as: All Day Diamonds, Aria, Dewdrops, Tanishq Solo, Dancing Diamonds etc. These collections come with a certificate of authenticity that states the caratage, color and clarity of the diamond.

QUALITY

Consistency in delivering on their promise - Tanishq promises superior quality jewellery with purity in gold. It is the first and only jeweller that guarantees the purity of its gold jewellery and certifies the quality of the precious/semi-precious stones in writing.

They claim and deliver the exact carats and weight that they promise. Impurity in gold and not delivering what was promised is one of the main problems the consumers face when going for gold purchase. They eliminated this and have built its brand in trust. Tanishq now stands for quality and purity. They even have gold meters where one can check the purity of gold. Thus it has established itself as a highly ethical player in a market that was rated as having the highest incidence of under caratage (Bureau of Indian Standards).It maintains its quality standards in all its products wherever they are sold. This shows that they have a resolute core purpose. This is what they will have to maintain even when they global. They havethe right range of products for the different markets across the globe. Only theyhave to remember their differentiating factor. The differentiating factor for Tanishqwill be the experience and quality they will be giving the consumers when theycome to the store.DESIGN

Widely acknowledged as a design leader, Tanishq is known for its ability to develop specialized design collections. Each piece of jewellery is designed by a team of award winning designers. In fact, Tanishq is the only jeweler to have a full- fledged design studio with one of the largest design teams in the country. Every product at Tanishq is painstakingly crafted to perfection. Diligent care and quality processes ensure that the Tanishq finish is unmatched by any other jeweller in the country. Tanishq was recently adjudged the Most Admired Jewellery brand (for the third consecutive time) in India at the Images Fashion awards 2004. It has also been judged as the Images Retailer of Year in the fashion category. Positioned as 9-to-5jewellery, the

collection is stylish and modern and is designed to suit all forms of attire, western and Indian, casual and formal.BRAND

NAME

"Jewellery is one of the last great commodity frontiers in India; it has remained so because this market is very fragmented, very unorganized. Tanishq has successfully taken on the challenge of transforming this frontier into a reliable consumer space by bringing to it all the virtues and benefits that branding offers", Harish Bhat, CEO, Tanishq. Tanishq within ten years years of establishment became the largest and most desirable brand in the jewellery segment in India. They have constantly introduced new offering to their consumers and have come up with new innovative ideas. The surveys showed that awareness of the brand was quite high. The company believes that young urban women, with independent incomes, are looking at branded national jewellers. The brand believes that accretion to this segment is clearly in its favour due to the modern contemporary image among women.

PROMOTIONThe Tata Group has promoted Tanishq as a jewellery store brand, which competes with close to three lakh traditional jewellers who dominate the domestic market. Ithas launched new collections at

a quicker rate than its competitors, and conducted marketing promotions and fashion shows to enhance the shopping experience of consumers. Given the diverse nature of Indian ethnicity, Titan made the designs more ethnic to satisfy the tastes of all regions. Titan transposed designs by stocking Bengali designs in Delhi, Keralite designs in Tamil Nadu and typical designs from Tamil Nadu in Bombay in order to appeal to a variety of people. Concept stores, the first of which, costing Rs 10 crore, opened in Kolkata . The idea of such a store was to harmonize the tradition of the past with the modernity of the present. In 1998, it launched the corporate gold gift scheme - 'When you want to say thank you, say it in gold'. In 1999, Tanishq delivered gold coins worth Rs. 20 crores to Maruti Udyog Ltd., to be given away as gifts to Maruti car owners. By 2001, the scheme accounted for almost 5% of the turnover and over 30 corporate clients like Coca-Cola, the UB Group, Whirlpool, TVS Group, Ceat and Liberty shoes. In early 2000, it made miniature gold cars for Hyundai Motors to be given to select dealers. Tanishq has also endeavored to be part of every occasion in an Indian womans life through festive promotions, customer contact programmes as well as through Anuttara, Tanishqs exclusive consumer reward programme etc. Tanishq provides Gift vouchers in various denominations for gifting your friends and family. Tanishq, to set off competition, launched Jodhaa Akbar collection and managed to get lot of marketing hype. The collection is very pricey and suggested retail price is between Rs 25,000 to Rs 15 lacs. One of the companys most important initiatives was customer service enhancement. Tanishq launched a direct consumer contact programme and conducted surveys to monitor store walk-ins and footfalls and percentage of repeat customers. The company also kept

the entry-level price as low as Rs 600 (for apendant) and offered a range, which far exceeded that offered by any other jeweller. A customer satisfaction measurement program was started with the help of Customer Satisfaction Measurement Management (CSMM), an associate of IMRB. CSMM tracked customer satisfaction parameters for Tanishq on a quarterly basis. In 1999-2000 the communication and promotion budget was increased from Rs. 65million to Rs 100 million in 2000-01. A majority of this was spent towards advertising, while a portion was also earmarked for promotions tailored to match regional preferences. For instance, in New Delhi, which was Tanishqs single largest market, substantial promotions were carried out. The Rs 100 million was split into four parts, comprising national-level spends (both electronic and print-media), regional budgets, direct mail and research. For the first time, Tanishq initiated a long-term media plan, aiming to give the brand a round-the-year presence and enhance awareness. A customer survey revealed that despite its high-blitz ad campaign, many didn't know what Tanishq was about, others found it too expensive and some felt that the product was not for people like them .So, Kurian and his team then decided to launch the fifth anniversary celebrations of Tanishq that would offer discounts to customers and induce them to come to the store. The ploy worked and they had customers waiting for the store to open. Ad campaigns also started to list out the products that Tanishq had. Bracelets,rings, chains, pendants were explicitly mentioned in each ad. A range starting at Rs.399 was launched. The aim was to bring down the price barrier significantly. Collections for the working women and a new set of contemporary designs were brought into the stores.

Aria, for seven stone diamond jewellery, Hoopla, focused on diamond studded hoops and Collection-G for lower priced gold jewellery with an interesting twist are just a few lines that have come out of the Tanishqs stable in the last three years. One of Tanishqs more innovative ideas is to offer special schemes during various festivals. Tanishq has also initiated a loyalty program called the Golden Harvest Savings Scheme, which offers buyers the benefit of getting more jewellery than what they have paid for. The scheme allows consumers to plan future purchases in advance and pay for them in easy installments. Exchange offer - change impure gold for pure 22 kt gold - attracted more people to the stores. It is estimated that roughly 2.85 lakh customers bought from - and close to a million people went through 53 Tanishq stores across 41 cities. Since the European designs in 18carat gold did not find any takers in 1997, Tanishq introduced 22carat ornaments. After hitting six countries in the last four years, Tanishq entered the $57-billion US jewellery market with two exclusive stores, one in Chicago and the other in New Jersey, in the first quarter of 2007-08.

PLACETanishq jewellery is crafted in one of the world's most modern factories. The factory complies with all labour and environmental standards. Located at Hosur, Tamil Nadu, the 135,000 sq. ft. factory

is equipped with the latest and most modern machinery and equipment. Tanishq reached the century mark as it unveiled its 100th store in Patna at Hathwa Market. Having embarked on the retail journey a decade ago, Tanishq today is the largest jewellery retailer in India. With a strong presence in 70 cities across India,unmatched collections and assured purity, Tanishq has quickly become the first choice of discerning customers. Tanishq opened 30 retail stores during FY08, taking the tally to 130 stores. Currently, the average store-size for Tanishq is 1,0001,500 sq ft. The stores operate on the franchise model. Tanishq has undertaken several unique retail initiatives keeping in mind the customer demand for a world class shopping experience. As such Tanishq retail identity has evolved over the years to offer large format and concept stores that reflect the brands philosophy of being Revitaliser of Tradition. Design and retail innovation have been the hallmark of Tanishq all these years. Tanishq has constantly formulated an innovative product strategy in this journey inline with the evolving consumer tastes. Modern retail values and principles in the selling of branded jewellery in India are almost completely the handiwork of Tanishq. The brand has broken fresh ground inretailing by creating exclusive outlets with hitherto unknown in-store ambience and hospitality touchstones. Following more than 40% percent growth in operations last year, Tanishq will invest extensively during 2008 in marketing and retail initiatives to further develop the market. In addition, Tanishq will build new logistics centres and upgrade existing ones, laying a solid foundation to meet future competition.

Besides catering to Indian consumers, Tanishq has successfully entered key exportmarkets such as the US, the UK, the Middle East, Singapore and Australia. This istestimony to the brand's ability to craft products that meet the requirements ofvaried cultures and sensibilities. Tanishqs retail boutiques are temples for the brand and are used as a platform forcelebration, be it the launch of a new collection, a new marketing promotion or afestival. This gives Tanishq outlets a unique appeal and consumers an opportunityto heighten their shopping experience. Tanishq gave complete freedom to the retail outlets to pick up designs, which theythought would sell in their stores. Almost all the outlets stocked the 'best selling'range of designs, which did well across the country. In fact, industry experts recall a period when plain gold gained space in Tanishq stores at the cost of studded jewellery. "It was perhaps an offshoot of its expansion into mini-metros and other towns where the company thought plain gold will be in more demand. It was not a well-researched move,'' says an industry expert. It plans to open two pilot stores at Chicago and New Jersey with a retail format of1,800-2,000 sq ft. Meanwhile, it plans to tap small cities by opening 15 Gold Plus outlets, its jewellery store brand for semi-urban markets. Launched two years ago,Gold Plus clocked Rs 200 crore revenues during FY08. Tanishq has entered the US markets. This is an amazing achievement for Titan Industries, said V Govindraj, Vice President, Tanishq. Retail is a capital-intensive business. In America, having1,000 stores is not unusual. Even for niche retailing, 200-300 stores are needed. But in India, although there are several small scale unorganized jewellery markets, Tanishq is the first and only jewellery brand to have organized mass jewellery retail chains across the country. As our company expands, more and more peoplewill be able to share our mindset. Tanishqs retail

strength goes beyond its innovative identity and extensive reach. Tanishq has undertaken several unique retail and marketing initiatives like creating purchase triggers like Doctors Day /Professional Day etc that were unexplored avenues in the industry. Following more than 40% percent growth in operations last year, Tanishq will invest extensively during 2008 in marketing and retail initiatives to further develop the market. In addition, Tanishq will build new logistics centres and upgrade existing ones, laying a solid foundation to meet future competition. Add the world to this. After hitting six countries in the last four years, Tanishq is entering the $57-billion US jewellery market with two exclusive stores, one in Chicago and the other in New Jersey, by the first quarter of 2007-08. S.Ravi Kant, COO (international business division), Titan, says: We are not looking at the NRI market only. We want to understand the American consumer. He claims that Tanishqs market research team is figuring out the market and a designer who can create new products for it. Traditional jewellers have been rebranding themselves and are expanding in smaller towns to widen reach. "The emphasis for Tanishq will be on special collections, diamond jewellery and bigger stores of about 4,500 sq ft", Venkataraman said. Tanishq's team of in-house designers came out with about 3,500 designs based on current trends and the feedback from stores. At least 10% of these designs were changed every quarter and fresh ones were added to the stock.

PRICEWe have very large collections of pendants, earrings and fingerings in this price range Rs 2000-5000. Tanishq range of

products start at an accessible low of Rs.600 and the range - Solo, Aria, Diva, Hoopla, Lightweights, Bandhan and the most recent, Colours - comprises wearable everyday jewellery which has been designed for the urban working woman. The Tanishq Valentines Day collection includes pendants, earrings and finger rings starting from Rs. 2,000 onwards. Daytimes collection of all day diamonds, which starts at an affordable Rs. 1,960. The collection combines traditional motifs in sleek contemporary lines with slight touches of black rhodium. The 'up to 25 percent' off offer by Tanishq is a unique opportunity. This attractive offer has been introduced to benefit the customers and provide them with the best price and product options. Affordably priced from Rs 2,500/- onwards the Tanishq range of diamond jewellery is the ideal accessory for the customers. This collection is crafted using a special process called electro-forming. The jewellery is targeted at customers who are looking for international designs, wearability and value for money. The new collection starts from a price range of Rs.6,000 onwards and available at all Tanishq boutiques across the country. Tanishq offers gold and gem-set jewellery in over 6000 traditional,western and fusion designs. The Tanishq retail chain currently includes 112 exclusive boutiques in 75 cities, making it India's first and largest jewellery retail chain.

BRAND POSITION

Tanishq has been projected as an impeachable mark of trust by raising the awareness of the people about unethical practices in the jewellery business and then measuring the gold purity by carat meter. Tanishq also has been positioned as a branded jewellery of luxury rather than commodity. It moves jewellery beyond investment to the fashion and adornment sector.

SEGMENTATIONNiche Marketing After its inception in 1995 focus on exports, Tanishq's designs had been conceptualized for the Western markets and were introduced in India without any alterations. Tanishq positioned itself as an international brand for the Indian elite. The brand was targeted at a niche market(However they later on started targeting the mass marketing since 1997).

Psychographic Segmentation Life Style: Tanishq has found that 40% of the Indian women are working and they targeted this segment with a specific group of

products called collection-G, a 9-to-5 jewellery for the working women.

Geographical Segmentation Titan realized that, given the diverse nature of Indian ethnicity, it would have to satisfy the tastes of all regions. So, the designs became more ethnic. Titanalso decided to transpose designs by stocking Bengali designs in Delhi,Keralite designs in Tamil Nadu and typical designs from Tamil Nadu inBombay in order to appeal to a variety of people

TargetingTanishq was initally targeted at a niche market.However, the traditional India woman who prefers 22-carat gold jewellery didnot appreciated the International design made out of 18-carat gold. It was then when the company went back to the drawing board and decided to target the larger segment of the young Indian women, having a modern, comtemporary outlook towards life while still being rooted in the traditional Indian values. The target segment was thus, changed to the mainstream Indian customer and the product was differentiated from standard fares through the fusion of comtemporary and traditional Indian motis.

This approach encouraged Tanishq to bring out new product lines such as Aamra, Day Times, and Light weight color. Accordingly, the collection was introduced with modern innovative designs, creating a first-ever customized market to target such segment.

SWOT ANALYSISStrengths Purity of the jewellery through carat meter is still the sign of total purity. Distribution network and retailing store are in place for the company with130 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 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.

ConclusionThis is the era of technology. Technology and new innovation could lead Tanishq to new heights and in this way it could outdo its

weaknesses. Like, the high tech machineries which the branded companies use are able to produce 250 kgs of gold to produce good designers at very less time. Even if goldsmiths work six months for 12 hrs they are not able to produce the same design. So the branded companies are able to offer good designers at cheap price. So most of the goldsmiths are forced to close the shops so its a appropriate time to target the tyre-3 cities to increase the market share and to increase the profits to a large extent. If all measures are taken properly then it could easily increase its market share.

Refrences Marketing Management : Kotler-Keller-Koshy-Jha Wikipedia: http://en.wikipedia.org/wiki/Titan_Industries Tanishq's Official Website: http://tanishq.com Case Studies And Management Resources: http://www.icmrindia.org/