Santosh Tanisq Final

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0 8 B M C 0 8 1 1 1

SANTHOSH.H.S

USN :

A RESEARCH REPORT ON TANISQ Buying behaviour of gold with regards to Tanisq

PES COLLEGE OF BUSINESS MANAGEMENT(100.ft Ring Rd,BSK III Stage,BENGALURU 85)


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ACKNOWLEDGEMENT

I would like to thank Mr. Venugopal Naidu, head of the department of PES

College of Business Management, for his support throughout the course.

It is indeed a great pleasure to express my profound and sincere gratitude to

Ms Priya , faculty of PES College, for her valuable guidance in this

endeavor. She has been a constant source of inspiration and I sincerely thank

her for her suggestions and help in preparing this project report.

I am immensely thankful to all my respondents and friends who have helped

me in completing this project successfully.

Reg no : 08BMC08111

Date : 06-09-2010

Name : SANTHOSH.H.S

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DECLARATION

I hear by declare that this project report on TANISQ submitted in partialfullfillment of the accademic requirement of BU. I have given my sincere efforts

to do the project. Under the guidance of Ms Priya.

I further declare that the findings and conclusions in this report is based on

information collected by me and the field work done by me.

REG.NO:08BMC08111PLACE :BENGALURU

DATE :06-09-2010


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SL No CONTENTS PAGE No

1INTRODUCTION

Tanishq profile

1-3

2 ABOUT THE RESEARCH

Purpose Of The Research

Problem Of The Research

Objective Of The Research

Limitations Of The Research

Significance Of The Research

4

3 SAMPLE

Sampling Frame

Sampling Unit

Sample Size

Sample Size Selection

5

4 RESEARCH METHODOLOGY

Research Tools

Exploratory Research

Questionnaire Survey

Descriptive Research

6-10

5 Detailed Findings 11-19

6 Recommendation & Conclusion 20

7 Bibliography 21


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A RESEARCH REPORT ON TANISQ Buying behaviour of gold with regards to Tanisq


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INTRODUCTION

TANISHQ PROFILE

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 brandname ofTanishq, 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 Metaland 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

0

5000

10000

15000

20000

25000

2000 2001 2002 2003 2004 2005 2006 2007 2008

Revenue

in million

Rupees

1


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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 ofinvestment. (Luxury is needed).

SWOT ANALYSIS

STRENGTH

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

the entire product ranges as compared to the competitors.

WEAKNESS

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.

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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 CollectionThe bride blushes

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ABOUT THE RESEARCH

THE PURPOSE OF THE RESEARCH

The basic purpose of this research is to find the buying behaviour of people of

bangalore towards 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:

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

To find what they like & dislike about Tanishq.

On the basis of in depth interview we got 6 criteria in which we could measure theattitude of people towards Tanishq.

LIMITATIONS

The survey was conducted within the limited time frame; so few shortcoming may be

expected.

The respondents 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.

HYPOTHESISPrice does not affect the buying of gold.

Quality of gold does not effect the buying of gold

Service does not effect the buying of gold

Pattern does not effect buying of goldLocation of store does not effect buying behavior of gold.

Ambiance of store effect buying behavior of gold. 4


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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 bean individual.

The sample unit for this research constitutes the organization that is Tanishq only

dealer in Bangalore

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.

It was difficult to locate the customer who have visited to tanishq.

The respondents were not much educated so it was difficult to make them

understand about the questionnaire.

People were not easily available outside Tanishq.

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RESEARCH METHODOLOGY

Research Tools:

The research tool used for this research is

PRIMARY DATA

In primary data the following research design is being followed:

1. Exploratory Research:

Questionnaire Survey (Sample Size 150)

2. Descriptive Research:

On the basis of the questionnaire survey, the analysis is done in order tofind out the reason why people are not visiting Tanishq

I have used 2 types of reaserch design they are

a) Exploratory research

b) Descriptive research

Exploratary research because we were not knowing the actual problem faced bytanishq. 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

Mr Bhaskar who is the senior sales manger of tanishq of south Bangalore 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 arenot turning out towards Tanishq is because ofPrice 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 ofPayal jwellers of bangalore 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 timeb) The people have trust on the purity of gold

c) 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.6


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d) He also said that people of Bangalore 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 thought that major reasons which

can effect the purchase decision of people buying gold are

Price

Quality

Service

Availability of pattern

Proximity to marketAmbiance of store

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Questionnaire

Dear Sir/Madam

We are the students of 3nd Year BBM Course ofPES. As a part of our research studywe 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:-

Please check the box wherever required.

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

JAYANAGAR ___________________

RAJAJINAGAR ___________________

KORMANGALA ___________________ 8


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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

Product are worth price you pay ?

Purity & quality of gold ?

The service you get in the store ?

The Number of patterns available ?

Proximity to market ?

Ambiance of Store ?

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

Yes No

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

TV News Paper Hoardings

Pamphlets Friends/relatives Others

Particular V.Good Good Average Bad V.bad

a) Price

a) Purity & Quality of Gold

a) Service Offered

a) Patterns Available

a) Locationof Store

a) Ambianceof store

Q 13) Rate Tanishq On flowing Criteria Given below

Q 12) Have you visited Tanishq Store?

Yes No

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

Yes No

Particular V.Good Good Average Bad V.bad

Tanishq As a Store

Q 15) Would you recommend others for Buying Tanishq Products?Yes No

Q 16) Rate tanishq on over all basis?

Thank You

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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, 65

male

female

Out of 121 there were 65 female that constitute 54% of total sample & rest are malethey are 56 which contributes 46% of total sample.

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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

5000 10000 = 6

10000 20000 = 11

20000 30000 = 18

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.

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Hypothesis Testing

X2 = (o-e)2/ e

Price

Particular 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 8 121

Observed expected o-e 2(o-e) 2(o-e)/e

3 2.97 0.03 0.0009 0.000303

12 6.69 5.31 28.1961 4.214664

11 12.14 -1.14 1.2996 0.107051

4 6.19 -2.19 4.7961 0.774814

0 1.98 -1.98 3.9204 1.98

8 6.54 1.46 2.1316 0.325933

15 14.72 0.28 0.0784 0.005326

31 26.2 4.8 23.04 0.879389

12 13.63 -1.63 2.6569 0.19493

0 4.36 -4.36 19.0096 4.36

1 1.78 -0.78 0.6084 0.341798

0 4.01 -4.01 16.0801 4.01

6 7.28 -1.28 1.6384 0.225055

7 3.71 3.29 10.8241 2.917547

4 1.19 2.81 7.8961 6.635378

0 0.39 -0.39 0.1521 0.39

0 0.89 -0.89 0.7921 0.89

1 1.61 -0.61 0.3721 0.231118

1 0.82 0.18 0.0324 0.039512

2 0.26 1.74 3.0276 11.64462

0 0.29 -0.29 0.0841 0.29

0 0.66 -0.66 0.4356 0.66

0 1.21 -1.21 1.4641 1.21

1 0.61 0.39 0.1521 0.249344

2 0.19 1.81 3.2761 17.24263

Total 59.8194

Price does not affect the buying of gold.

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 59.8149So 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.

Buying behaviour of gold

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Quality

Particular 1 2 3 4 5 total

1 3 2 2 0 0 72 1 4 5 2 0 12

3 2 10 20 11 3 46

4 6 9 18 8 5 46

5 0 2 4 4 0 10

Total 12 27 49 25 8 121


3 0.69 2.31 5.3361 7.733478

2 1.56 0.44 0.1936 0.1241032 2.83 -0.83 0.6889 0.243428

0 1.44 -1.44 2.0736 1.44

0 0.46 -0.46 0.2116 0.46

1 1.19 -0.19 0.0361 0.030336

4 2.67 1.33 1.7689 0.662509

5 4.85 0.15 0.0225 0.004639

2 2.47 -0.47 0.2209 0.089433

0 0.79 -0.79 0.6241 0.79

2 4.56 -2.56 6.5536 1.437193

10 10.26 -0.26 0.0676 0.006589

20 18.62 1.38 1.9044 0.102277

11 9.5 1.5 2.25 0.236842

3 3.04 -0.04 0.0016 0.000526

6 4.56 1.44 2.0736 0.454737

9 10.26 -1.26 1.5876 0.154737

18 18.62 -0.62 0.3844 0.020644

8 9.5 -1.5 2.25 0.236842

5 3.04 1.96 3.8416 1.263684

0 0.99 -0.99 0.9801 0.99

2 2.23 -0.23 0.0529 0.023722

4 4.04 -0.04 0.0016 0.000396

4 2.06 1.94 3.7636 1.82699

0 0.66 -0.66 0.4356 0.66

Total 18.99311

Quality of gold does not effect the buying of gold

The hypothesis of these question is that the Quality does not effect the buying behavior of

consumer that is Ho.

So from the calculationwe got the value of H0 as 18.99311

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


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1 0 0 1 0 0 1

2 1 0 0 0 0 1

3 1 6 5 8 1 21

4 6 15 33 10 6 70

5 4 6 10 7 1 28

Total 12 27 49 25 8 121

Service


0 0.09 -0.09 0.0081 0.09

0 0.22 -0.22 0.0484 0.22

1 0.4 0.6 0.36 0.9

0 0.2 -0.2 0.04 0.2

0 0.06 -0.06 0.0036 0.06

1 0.09 0.91 0.8281 9.201111

0 0.22 -0.22 0.0484 0.22

0 0.4 -0.4 0.16 0.4

0 0.2 -0.2 0.04 0.2

0 0.06 -0.06 0.0036 0.06

1 2.08 -1.08 1.1664 0.560769

6 4.68 1.32 1.7424 0.372308

5 8.5 -3.5 12.25 1.441176

8 4.33 3.67 13.4689 3.1106

1 1.3 -0.3 0.09 0.069231

6 6.94 -0.94 0.8836 0.12732

15 15.62 -0.62 0.3844 0.024609

33 18.35 14.65 214.6225 11.69605

10 14.46 -4.46 19.8916 1.375629

6 4.63 1.37 1.8769 0.405378

4 2.78 1.22 1.4884 0.535396

6 6.25 -0.25 0.0625 0.01

10 11.34 -1.34 1.7956 0.158342

7 5.79 1.21 1.4641 0.252867

1 1.85 -0.85 0.7225 0.390541

32.08133

Service does not affect buying behavior of consumer.

The hypothesis of these question is that the service does not effect the buying behavior of


So from the calculation we got the value of H0 as 32.0813




So service does matter in buying gold. 15


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1 0 2 4 0 0 6

2 5 7 16 8 3 393 3 11 16 7 2 39

4 3 6 4 6 1 20

5 1 1 9 4 1 17

Total 13 27 49 25 7 121

PATTERN


0 0.65 -0.65 0.4225 0.65

2 1.34 0.66 0.4356 0.325075

4 0.45 3.55 12.6025 28.00556

0 1.25 -1.25 1.5625 1.25

0 0.35 -0.35 0.1225 0.35

5 4.19 0.81 0.6561 0.156587

7 8.7 -1.7 2.89 0.332184

16 2.9 13.1 171.61 59.17586

8 8.06 -0.06 0.0036 0.000447

3 2.26 0.74 0.5476 0.242301

3 4.19 -1.19 1.4161 0.337971

11 8.7 2.3 5.29 0.608046

16 2.9 13.1 171.61 59.17586

7 8.06 -1.06 1.1236 0.139404

2 2.26 -0.26 0.0676 0.029912

3 2.15 0.85 0.7225 0.336047

6 4.46 1.54 2.3716 0.531749

4 1.49 2.51 6.3001 4.228255

6 4.13 1.87 3.4969 0.846707

1 1.16 -0.16 0.0256 0.022069

2 1.83 0.17 0.0289 0.015792

1 3.79 -2.79 7.7841 2.053852

9 1.26 7.74 59.9076 47.54571

4 3.51 0.49 0.2401 0.068405

1 0.98 0.02 0.0004 0.000408

206.4282

Pattern does not effect effect buying behavior of consumers.

Pattern does not effect buying behavior of gold.

The hypothesis of these question is that the pattern does not effect the buying behavior of


So from the calculation we got the value of H0 206.4282




So it has been analyzed that Tanishq has good variety of pattern. 16


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1 2 0 6 2 0 10

2 2 2 3 0 1 83 4 6 18 8 4 40

4 3 7 14 9 1 34

5 1 12 8 6 2 29

Total 12 27 49 25 8 121

Proximity


2 0.99 1.01 1.0201 1.030404

0 2.23 -2.23 4.9729 2.236 3.88 2.12 4.4944 1.158351

2 2.07 -0.07 0.0049 0.002367

0 0.67 -0.67 0.4489 0.67

2 0.79 1.21 1.4641 1.853291

2 0.79 1.21 1.4641 1.853291

3 3.11 -0.11 0.0121 0.003891

0 1.65 -1.65 2.7225 1.65

1 0.53 0.47 0.2209 0.416792

4 3.97 0.03 0.0009 0.000227

6 8.93 -2.93 8.5849 0.96135518 15.54 2.46 6.0516 0.389421

8 8.27 -0.27 0.0729 0.008815

4 2.64 1.36 1.8496 0.700606

3 3.37 -0.37 0.1369 0.040623

7 7.59 -0.59 0.3481 0.045863

14 13.21 0.79 0.6241 0.047245

9 7.02 1.98 3.9204 0.558462

1 2.25 -1.25 1.5625 0.694444

1 2.88 -1.88 3.5344 1.227222

12 6.47 5.53 30.5809 4.726569

8 11.26 -3.26 10.6276 0.943837

6 5.99 0.01 1E-04 1.67E-05

2 1.92 0.08 0.0064 0.003333

Total 21.21642

Proximity does not affect buying of gold.

The hypothesis of these question is that the proximity does not effect the buying behavior of



So when compared to tabulated value of the number that is (r-1)*(c-1) gives us the tabulatedvalue so for my question (5-1)*(5-1)= 16 is the degree of freedom.


So Ho


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1 1 1 0 4 1 7

2 0 2 6 2 0 103 5 6 11 6 2 30

4 3 9 17 8 11 38

5 4 9 14 5 4 36

Total 13 27 48 25 8 121

Observed Expected o-e 2(o-e) 2(o-e)/e

1 0.75 0.25 0.0625 0.083333

1 1.56 -0.56 0.3136 0.201026

0 2.78 -2.78 7.7284 2.78

4 1.45 2.55 6.5025 4.484483

1 0.46 0.54 0.2916 0.633913

0 1.07 -1.07 1.1449 1.07

2 2.23 -0.23 0.0529 0.023722

6 3.97 2.03 4.1209 1.03801

2 2.07 -0.07 0.0049 0.002367

0 0.66 -0.66 0.4356 0.66

5 3.22 1.78 3.1684 0.983975

6 6.69 -0.69 0.4761 0.071166

11 11.9 -0.9 0.81 0.068067

6 6.2 -0.2 0.04 0.006452

2 1.98 0.02 0.0004 0.000202

3 4.08 -1.08 1.1664 0.285882

9 8.48 0.52 0.2704 0.031887

17 15.07 1.93 3.7249 0.247173

8 7.85 0.15 0.0225 0.002866

1 2.51 -1.51 2.2801 0.908406

4 3.87 0.13 0.0169 0.004367

9 8.03 0.97 0.9409 0.117173

14 14.28 -0.28 0.0784 0.00549

5 7.44 -2.44 5.9536 0.800215

4 2.38 1.62 2.6244 1.102689

Total 15.61287

Ambiance does not affect buying behavior of gold.

The hypothesis of these question is that the proximity does not effect the buying behavior of




value so for my question (5-1)*(5-1)= 16 is the degree of freedom.


So Ho


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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 behaviorof gold are

Because of price people are not visiting Tanishq.

People are happy with the quality of Tanishq & they go to Tanishq only because the

purity & quality of gold.

The people also visit Tanishq because they provide better services then the other

retailers.

The pattern are also major factor because of which people does not prefer Tanishq.

The people says that the location of store is not affecting them to visit Tanishq.

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 Bangalore ambiance , proximity to market & service are less important.

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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 serviceoriented 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

The making charge is affecting their sales so they should cut down their prices.

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.

People are more service conscious so they can target young business man & young

professional as they are now more in investing money in gold.

Gold price are increasing day by day so they should increase their sales by selling

biscuits of gold rather than selling more of ornaments.

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BibliographyTanishq Website

Tanishq Outlet

Marketing Research Text Book

21

Santosh Tanisq Final

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