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Tanishq Brand Analysis
Tanishq Brand Analysis
PROJECT ON
BRAND ANALYSIS OF
TANISHQ & GITANJALI JEWELS
SUBMITTED BY:
PRATHAMA MADHAV DEOKAR
BRAND ANALYSIS OF
TANISHQ & GITANJALI JEWELS
CERTIFICATE
I, Prof. Manju Chakrawati, hereby certify that Ms.Prathama Madhav
Deokar student of Vidya Vikas Universal College, T.Y.B.M.M. (Semester 5)
has completed the project on Brand Analysis of Tanishq and Gitanjali
Jewels in the academic year 2015-2016.
The information submitted is true and original to the best of my knowledge.
Date:
Certified by
PROJECT GUIDE
BMM COORDINATOR
PRINCIPAL
ACKNOWLEDGMENT
I would like to express my gratitude to all the people who have directly or
indirectly assisted me in my project related studies and contributed in the
process of making this project.
Firstly, I would like to thank my period guide, Prof. Manju Chakrawati, for
her support, cooperation and fruitful discussions during my research on the
topicBRAND ANALYSIS OF TANISHQ AND GITANJALI JEWELS
I would also like to thank the staff at Tanishq and Gitanjali Jewels for
helping me out with my case study and enriching my experience during this
whole process.
Lastly, I would like to express my gratitude to my college, for providing me
such an interesting topic for my university project and their by supporting,
and cooperating with me during my project.
This has been a tremendous learning and enriching experience for me.
INTRODUCTION
The Gems & Jewellery industry
The Gems and Jewellery (G&J) market essentially comprises of
sourcing,processing, manufacturing and selling of precious metals
and gemstones, such as,Gold, Platinum, Silver, Diamond, Ruby,
and Sapphire etc. The G&J market is asignificant contributor to the
Indian economy, based on the size of the domesticmarket and
through its contribution to the countrys exports. India is the
largestconsumer of gold (around 20 percent of global consumption)
and also the largestdiamond processor (around 90 percent by pieces
and 55 percent by value of theglobalmarket.Indias G&J industry is
highly unorganized and fragmented with 96 percentof the total
players being family owned businesses. The gold processing
industryhas around 15,000 players, with only 80 having revenues
over USD 5 million.India is also home to around 450,000
goldsmiths, 100,000 gold jewelers along with6,000 diamond
processing players and 8,000 diamond jewelers.The value chain of
the industry starts from sourcing and mining of the metals
andextends to jewellery retail. While India is not a major miner of
previous metals andstones, the countrys inexpensive and well
skilled workforce makes it a worldleader in processing of
diamonds. The countrys jewellery retail sector is alsoexpected to
evolve with a shift among consumers towards branded jewellery,
driven by greater quality consciousness.There are a few major
players in the G&J segment, with Rajesh Exports being themost
dominant name. Other key players in the field include Gitanjali
Gems, Suhashish Diamonds, Su-Raj Diamonds, Vaibhav Diamonds
and Tanishq. Many of these players are focused on developing
Contents
Executive summary
Introduction
Evolution of tanishq
Growth of tanishq
Competitors
Carbon
Gili
Ps of Marketing Product
Product variety
Quality
Design
Brand name
Services
Place
Pricing
Ansoffs model
Brand Position
Segmentation
Niche marketing
Psychographic segmentation
Geographical segmentation
Swot analysis
Strength
Weaknesses
Opportunities
Threats
The making of a great global Brand
Recommendations
References
EXECUTIVE SUMMARY
An Indian Brand, which can make big in the global market, is
Tanishq from TataGroup of Industries. Tanishq is Indias largest,
most desirable and fastest growingjewellery brand in India.
Tanishq today is Indias most aspiration fine jewellerybrand with an
exquisite range of gold jewellery studded with diamonds or
coloredgems and a wide range of equally spectacular jewellery in
22Kt pure gold.Exquisite platinum jewellery and designer
silverware is also part of the productrange.Though they faced with
many difficulty in the early stages they for about six yearsthey then
came with up with good strategies The Tanishq strategy for the
comingcouple of years relies on two things increasing
penetration in the domesticmarkets and going abroad in order to
diversify its revenue portfolio.To push penetration in other
markets, Tanishq will use the shop-in-shop conceptthat it already
does in 50 stores across different West Asian markets. Thisreduces
distribution costs. Also, for the consumer it remains a Tanishq store
andhelps us get a foot into 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 karat meter, which proves the quality of
thegold, to win the trust of the customer.
EVOLUTION OF TANISHQ
Titan came into existence in July 1984, when the Tata Group joined
hands with theTamil Nadu Industrial Development Corporation
(TIDCO) to make a foray into thewatch industry.Titan started
manufacturing jewellery watches and jewellery in 1994. It set up
itsfully integrated Rs. 400 million-jewellery plant in Hosur. The
plant had thecapacity to manufacture four tonnes of gold in a year.
Titan launched theseproducts under the brand name of Tanishq, in
1995. The name Tanishq, a blend oftwo 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 accessoriesmanufacturer, Titan was
renamed Titan Industries Ltd. in 1995. Titan scaled thecapacity of
its Hosur plant to 4.18 million units in 1996 to meet the domestic
andinternational demand. From the late 1990s, Titans commitment
to the jewellerybusiness 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 wereallowed to import gold. In 1992, as part of
economic liberalization, the governmentabolished the Gold Control
Act of 1962, allowing free import of gold. In 1993, private
companies were allowed to enter the hitherto restricted gold
anddiamond mining industry. Foreign investors were allowed to
hold up to 50%equity in mining ventures.
GROWTH OF TANISHQ
COMPETITORS
CARBON
In early 1991, the Bangalore based Peakok Jewellery Pvt. Ltd.,
(Peakok) wasincorporated and Mahesh Rao (Rao) was appointed
director. Peakok realized thatthe Indian consumers relationship
with gold jewellery would grow beyond aninvestment need
towards a lifestyle and personality statement.In 1996, within the
Peakok fold a new brand of 18-carat gold-based jewellerycalled
Carbon was launched. In 2000-01 Carbons focus had always been
to movejewellery from the vault to the dressing table and bring the
selling of jewellery outof heavily guarded jewellery stores. This
was achieved by persuading a fewlifestyle stores to add branded
jewellery to their vast array of products. Besidesselling from
lifestyle stores, Carbon also sold its products as gift items over
theinternet. Like Tanishq, Carbon laid emphasis on design.Most of
its designs were contributed by students at the National Institute
ofFashion Technology (NIFT) through the diploma programme
which the companysponsored. In addition, Peakoks team of six
designers, (headed by Rajeswari Iyer,an alumnus of a German
design school who had worked in the U.K., Germany andIndia)
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 oftraditional jewellery.It is
made available at `shop-in-shop outlets in large lifestyle stores
(such asShoppers Stop, Ebony, Globus, The Bombay Store,
Lifestyle and Taj Khazana) andsome premium boutiques (such as
the Helvetica in Chennai).Carbon products were priced between
Rs. 2,750 and Rs. 20,000 per piece. Whilethe cost of traditional
jewellery was negotiable, the cost of Carbon items was fixedand
nationally uniform.The brand is available at 50 outlets in 23 cities.
GILI
PS OF MARKETING
PRODUCT
PRODUCT VARIETY
Tanishq today is Indias most aspirational fine jewellery brand with
an exquisiterange of gold jewellery studded with diamonds or
colored gems and wide rangeof equally spectacular jewellery in
22Kt pure gold. Exquisite platinum jewelleryand designer
silverware is also part of the product range.Tanishq designs and
manufactures jewellery that is breath- taking, contemporaryand yet
has a tint of tradition. It produces 22 karat pure gold earrings that
come invarious shapes, sizes and designs. Some earrings are
embedded with preciousstones or colour gemstones. These
jewellery sets are overwhelming and couldprove to be apt for
occasions such as marriage, festivities etc. Furthermore, theyalso
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
acertificate of authenticity that states the karatage, color and clarity
of the diamond.
QUALITY
Consistency in delivering on their promise - Tanishq promises
superior qualityjewellery with purity in gold. It is the first and only
DESIGN
Widely acknowledged as a design leader, Tanishq is known for its
ability todevelop 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 thelargest design teams in the country. Every
product at Tanishq is painstakinglycrafted to perfection. Diligent
care and quality processes ensure that the Tanishqfinish is
unmatched by any other jeweller in the country.Tanishq was
recently adjudged the Most Admired Jewellery brand (for the
BRAND NAME
"Jewellery is one of the last great commodity frontiers in India; it
has remained sobecause this market is very fragmented, much
unorganized. Tanishq hassuccessfully taken on the challenge of
transforming this frontier into a reliableconsumer space by
bringing to it all the virtues and benefits that branding offers".
- Harish Bhat, CEO, Tanishq.
Tanishq was established in 1995 and within ten years it has become
the largest andmost desirable brand in the jewellery segment in
India. They have constantlyintroduced new offering to their
consumers and have come up with new innovative ideas. The
surveys showed that awareness of the brand was quite high.
Thecompany believes that young urban women, with independent
incomes, are looking at branded national jewellers. The brand
believes that accretion to this segment isclearly in its favour due to
the modern contemporary image among women.
SERVICES
PROMOTION
The Tata Group has promoted Tanishq as a jewellery store brand,
which competeswith close to three lakh traditional jewellers who
dominate the domestic market. Ithas launched new collections at a
quicker rate than its competitors, and conductedmarketing
promotions and fashion shows to enhance the shopping experience
ofconsumers. Given the diverse nature of Indian ethnicity, Titan
made the designsmore ethnic to satisfy the tastes of all regions.
Titan transposed designs by stockingBengali designs in Delhi,
Keralite designs in Tamil Nadu and typical designs fromTamil
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 .
Theidea of such a store was to harmonize the tradition of the past
with the modernityof the present. In 1998, it launched the corporate
gold gift scheme - When you want to say thankyou, say it in gold.
In 1999, Tanishq delivered gold coins worth Rs. 20 crores toMaruti
Udyog Ltd., to be given away as gifts to Maruti car owners. By
2001, thescheme accounted for almost 5% of the turnover and over
30 corporate clients likeCoca-Cola, the UB Group, Whirlpool, TVS
Group, Ceat and Liberty shoes. Inearly 2000, it made miniature
gold cars for Hyundai Motors to be given to selected
dealers.Tanishq has also endeavored to be part of every occasion in
an Indian womans lifethrough festive promotions, customer
contact programmes as well as through Anuttara, Tanishqs
exclusive consumer reward programme etc. Tanishq providesGift
vouchers in various denominations for gifting your friends and
family.Tanishq, to set off competition, launched Jodhaa Akbar
collection and managedto get lot of marketing hype. The collection
is very pricey and suggested retailprice is between Rs 25,000 to Rs
PLACE
Tanishq jewellery is crafted in one of the worlds most modern
factories. Thefactory complies with all labour and environmental
standards. Located at Hosur, Tamil Nadu, the 135,000 sq. ft.
factory is equipped with the latest and mostmodern machinery and
equipment. Tanishq reached the century mark as it unveiled its
100th store in Patna at HathwaMarket. Having embarked on the
retail journey a decade ago, Tanishq today is thelargest jewellery
retailer in India. With a strong presence in 70 cities across
India,unmatched collections and assured purity, Tanishq has
quickly become the firstchoice of discerning customers.Tanishq
opened 30 retail stores during FY08, taking the tally to 130
stores.Currently, the average store-size for Tanishq is 1,000-1,500
sq ft. The storesoperate on the franchise model.Tanishq has
undertaken several unique retail initiatives keeping in mind
thecustomer demand for a world class shopping experience. As
such Tanishq retailidentity has evolved over the years to offer large
format and concept stores thatreflect 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 arealmost
completely the handiwork of Tanishq. The brand has broken fresh
ground inretailing by creating exclusive outlets with hitherto
unknown in-store ambience andhospitality touchstones.Following
more than 40% percent growth in operations last year, Tanishq
willinvest extensively during 2008 in marketing and retail
PRICING
We have very large collections of pendants, earrings and fingerings
in this pricerange 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 mostrecent, Colours comprises wearable everyday jewellery which has been
designedfor the urban working woman.The Tanishq Valentines
Day collection includes pendants, earrings and fingerrings starting
from Rs. 2,000 onwards. Daytimes collection of all day diamonds,
which starts at an affordable Rs.1, 960. The collection combines
traditional motifsin 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 beenintroduced to
benefit the customers and provide them with the best price
andproduct options. Affordably priced from Rs 2,500/- onwards the
Tanishq range ofdiamond jewellery is the ideal accessory for the
customers.This collection iscrafted using a special process called
electro-forming. The jewellery is targeted atcustomers who are
looking for international designs, wearability and value formoney.
The new collection starts from a price range of Rs6,000
onwardsand 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
Indias first and largestjewellery retail chain.
BRAND POSITION
Tanishq has been projected as an impeachable mark of trust by
raising theawareness of the people about unethical practices in the
jewellery business andthen measuring the gold purity by
caratmeter.Tanishq also has been positioned as a branded jewellery
of luxury rather thancommodity. It moves jewellery beyond
investment to the fashion and adornment sector.
SWOT ANALYSIS
STRENGTH
Purity of the jewellery through karat meter is still the sign of total
purity.Distribution network and retailing store is in place for the
company with130 stores countrywide. Mind boggling/award
winning designs have comefor the company. Diversity in jewellery
gold/diamond/platinum enhances the product range of the
company. We also have competitive prices forthe entire product
ranges as compared to the competitors.
WEAKNESSES
Capture Rs 70,000-crore Indian jewellery market. Tanishq
comprises asmall share of the overall Rs 70,000-crore Indian
jewellery market andhence it needs to increase its market share in
this huge industry. Escalatedgold 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
towear jewellery should be further promoted. Customized
jewellery designsshould provided to the customers. Concentrate on
Gen-X by havingtrendy 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.
has also been judged as the Images Retailer of Year in the fashion
category.Tanishq jewellery is crafted in one of the worlds most
modern factories. Thefactory complies with all labor and
environmental standards. Located at Hosur, Tamil Nadu, the 1,
35,000 sq. ft. factory is equipped with the latest and mostmodern
machinery and equipment. Every product at Tanishq is
painstakinglycrafted to perfection. Diligent care and quality
processes ensure that the Tanishqfinish is unmatched by any other
jeweller in the country.Distinctive positioning and customer
experience. Yet another aspect of Tanishqthat sets it apart is a
whole new jewellery buying experience offered by itsexclusive
retail showrooms. Tanishq has not only developed a national retail
chainwith uniform and transparent practices and policies but also
maintainedconsistency of retailing standards across all these
showrooms on an ongoing basis.It has a distinctive positioning in
India as it is known for its high quality andjewellery with
international standards. Also, since they have many stores across
thecountry they give guarantee on their jewellery and also offer to
repair it free of costanywhere across the country.
An ability to stay relevant
Tanishq was established in 1995 and within ten years it has become
the largest andmost desirable brand in the jewellery segment in
India. They have constantlyintroduced new offering to their
consumers and have come up with new innovativeideas. They have
excellent after sales service and they have been committed
inproviding good and honest service.
A compelling idea
The idea of having branded jewellery was a totally unique idea.
Coupled with apromise of purity and a unique experience was very
compelling. It persuaded a lotof people especially the people in the
metros and semi metros to leave theirtraditional jewelers and go for
Tanishq.There was always lack of trust among the consumers for
their jewelers. Tanishq removed that with a promise of purity.
Hence what it did in India it can replicateacross the globe. Offer a
totally new perspective to Jewellery buying especiallywhen it
comes to exquisite oriental jewellery. Oriental Jewellery across the
worldis usually found in flea markets or place like China Town or
Indian Markets. Goinginto the main markets in the Western world
will give Tanishq the edge.
A resolute core purpose and supporting values
Tanishq 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 tomaintain even when they global.
They have the right range of products for thedifferent markets
across the globe. Only they have to remember theirdifferentiating
factor. The differentiating factor for Tanishq will be the
experienceand quality they will be giving the consumer when s/he
comes to the store.
A central organizational principle
Tanishq has to translate what its brand signifies to the whole of
their organizations.They have done that exceptionally well in the
Indian context. A visit to any Tanishq outlet shows that. The people
behind the counter are polite and courteous.They know that they