INDEX

SR.NO. CONTENTS
1 Introduction
2 Market Research
3 Market Research For Business Planning & Growth
4 Tanishq – An Introduction
5 Locating Tanishq
6 Product Line & The Collections
7 Tanishq For You
8 Tanishq Retailing
9 Marketing
10 Tanishq Marketing Strategy
11 The Jewellery Market
12 Some of Tanishqs Competitors
13 Tanishq – Market Research
14 Tanishq – The Turnaround Story
15 Promotion, Advertising & Public Relation
16 Tanishq In The News
17 Globalization

INTRODUCTION

As we see it, research in advertising and marketing is very crucial in understanding, speculating on, and
ultimately determining the position of the product in the consumer's mind.

It is like a homework task that a good advertising/marketing/sales person would always carry out
before (and after) implementing the said product's advertising/marketing strategy.

By collecting data with the help of research methods, the researcher can manage to understand the
consumer, what he wants, when he wants it, and how he wants it.

Research methodologies, more or less, aim to reveal consumers’ different perceptions of the product, in
large part about the way it is advertised.

The researcher wants to know how effective the advertisement is on his listeners, where the strategy
falls short, and where it can improve.

Ultimately, it can be said that the most important task of advertising/marketing research is to increase
the sales of the product. This requires a well developed marketing plan, a good know-how of the
prospective consumer, and most of all an effective and rational research methodology.
MARKET RESEARCH

Market research is the process of systematically gathering, recording and analyzing data and
information about customers, competitors and the market. Its uses include to help create a business
plan, launch a new product or service, fine tune existing products and services, and expand into new
markets. Market research can be used to determine which portion of the population will purchase a
product/service, based on variables like age, gender, location and income level.

Market research is generally either primary or secondary.In secondary research, the company uses
information compiled from other sources that appears applicable to a new or existing product. The
advantages of secondary research are that it is relatively cheap and easily accessible. Disadvantages of
secondary research are that it is often not specific to your area of research and the data used can be
biased and is difficult to validate. Primary market research involves testing such as focus groups,
surveys, field tests, interviews or observation, conducted or tailored specifically to that product.

A list of questions that can be answered through market research:

• What is happening in the market? What are the trends? Who are the competitors?

• How do consumers talk about the products in the market?

• Which needs are important? Are the needs being met by current products?
.

MARKET RESEARCH FOR BUSINESS PLANNING & GROWTH

Market research is for discovering what people want, need, or believe. It can also involve discovering
how they act. Once that research is complete it can be used to determine how to market your specific
product.

For the growth and plannning of a business there are a few things that are important:

Market information

Market information is making known the prices of the different commodities in the market, the supply
and the demand. Information about the markets can be obtained in several different varieties and
formats.
Examples of market information questions are:

• Who are the customers?

• Where are they located and how can they be contacted?
• What quantity and quality do they want?
• When is the best time to sell?

Market segmentation

Market segmentation is the division of the market or population into subgroups with similar
motivations. Widely used bases for segmenting include geographic differences, personality differences,
demographic differences, use of product differences, and psychographic differences.

Market trends

The upward or downward movements of a market, during a period of time. The market size is more
difficult to estimate if you are starting with something completely new. In this case, you will have to
derive the figures from the number of potential customers or customer segments.

But besides information about the target market you also need information about your competitor, your
customers, products etc.

A few techniques are:

• Customer analysis
• Choice Modelling
• Competitor analysis
• Risk analysis
• Product research
• Advertising research
TANISHQ – AN INTRODUCTION

Tanishq is India's largest, most desirable and fastest growing jewelry brand in India. Started in 1995,
Tanishq is the jewelry business group of Titan Industries Ltd - promoted by the TATA group, India's
most respected and widely diversified business conglomerate.

This year marks a decade of successful innings for Tanishq. With a retail sales of 1200 crore last year
and gunning for 2000 crores this year, Tanishq has arrived in the Indian jewelry market. It is a story of
a successful Indian enterprise, which has delivered value to its customers and shareholders in a
complex category, marked by its completely localized front end as well as back end.

Tanishq has set up production and sourcing bases with through research of the jewelry crafts of India.
jewelry at Tanishq 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 1,35,000 sq. ft. factory is
equipped with the latest and most modern machinery and equipment. 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 challenged the age-old jeweller's word with TATA's guaranteed purity. It exploded the market
with facts about rampant impurity across India. It introduced technology-backed challenge in a
category completely governed by individual trust. Tanishq introduced innovations like Karatmeter, the
only non destructive means to check the purity of gold.

Tanishq also introduced professional retailing in the dis-organised Indian jewelry bazaar, where women
can shop with comfort and peace, without worrying about the purity of the jewelry they are buying, as
well as, select from the best jewelry collections available in the Indian market.

Tanishq today is India's most aspirational fine jewelry brand with 91 stores in 64 cities, with an
exquisite range of gold jewelry studded with diamonds or coloured gems and a wide range of equally
spectacular jewelry in 22Kt pure gold. Exquisite platinum jewelry is also part of the product range.

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.

LOCATING TANISHQ

Tanishq had its first showroom in Chennai in 1996. Today it has over 60 showrooms in 47 cities. Only
six of these are owned by the company. The rest are run by franchisees.

There are six branches in Mumbai

Tanishq
365/C,Linking Road, Khar,
Mumbai-400 052
Ph: 022-26484846 / 26495959
Fax: 022 - 26487979

E-mail:

Tanishq
No. 7, Brabourne
Stadium, Veer Nariman Rd ,
Churchgate,
Mumbai-400 020
Ph: 022-22821621/ 22826043 / 22838801
Fax: 022 - 22875155
E-mail:

Tanishq
19-21, Kailash Plaza,
Vallabh Baug Road,
Opp. Odeon Cinema,
Ghatkopar East,
Mumbai - 400 077
Ph: 022- 25128020 / 25127734 / 25128020 / 25127684
E-mail:[email protected]

Tanishq
Level 2 R Mall
Lbs Road, Mulund (W)
Mumbai
Ph: 022 67969627 / 67997874 / 39576922
E-mail:[email protected]

Tanishq
G-11, Inorbit Malls
Mind Space, Malad Link Road,
Malad,
Mumbai - 400068
Ph: 022 56406945 / 56406938
E-mail:[email protected]

Tanishq,
Durga Chambers, Plot # Ctsf-904,
40 Waterfield Road,
Rk Patkar Marg, Turner Road,
Bandra(W), Mumbai:400050
Ph: 022-67100687 / 26424846

PRODUCT LINE & THE COLLECTIONS

PRODUCT LINE:

Tanishq Diamonds
The sparkle of diamonds has always attracted the human eye.

Finding your perfect piece of diamond jewelry is an exhilarating and unique experience. As with any
significant purchase, it is important that you make an educated decision.

Cut and crafted with utmost care, Tanishq diamonds come with a certificate of authenticity, stating the
caratage, colour and clarity of the stone, to enable you to know exactly what you are paying for.

No gemstone expresses human emotions more powerfully than a diamond and Tanishq transforms these
precious stones into breathtaking masterpieces, each unique and splendid in design. When it comes to
diamonds at Tanishq you will be spoilt for choice from many collections we have to offer.
Tanishq Gold

From the traditional harams, mangalsutras and thalis to the more fashionable earrings, chains, bracelets
and rings, there is a lot to choose from at Tanishq.

In India Gold has always been associated with security and is the most valuable form of investment.
However, it has been observed that consumer is an easy target to several malpractices like under
karatage, under valuation of the gold sold and unfair buy back policies due to the lack of awareness
about these issues.

Tanishq propagates ethical practices not only by assuring the customer purity and selling policies, but
also fair policies to the karigars who craft the jewelry

Tanishq's designs in Pure 22k gold are not only unique, expressing the wearer's individuality but each
piece is subject to the intricate process of design, crafting and stone setting with stringent quality
standards at every point. At Tanishq, we cater to every occasion. Our collections in gold abound from
the grandiose wedding collection to exotic kundan and polki, from the stunning Aarka collections to the
exclusive Nakashi work. We ensure that we have something for everyone with our baby range, 9 to 5
for the working woman and high fashion, men's wear, teen's collection and regional specific designs.

Tanishq Platinum
Metal at its best.

Pure
Platinum's purity endows it with a brilliant white luster. This helps to reflect the true radiance of
diamonds. Because it is generally 95% pure (18 karat gold is 75% pure), platinum jewelry does not
fade or tarnish and keeps its looks for a lifetime.

Rare
Platinum is rare, the coveted treasure of discerning individuals. There is very little platinum on this
earth and it is found in very few places around the world. This exquisite metal is 30 times rarer than
gold. Platinum's rarity makes it exclusive and distinctive - a celebration of your individuality.

Eternal
Platinum jewelry is the perfect choice for a lifetime of everyday wear. Platinum does not wear away
and holds precious stones firmly and securely. All precious metals can scratch, and platinum is no
exception. However, the scratch on a platinum piece is merely a displacement of the metal and none of
its volume is lost.

Some of the world's most famous gems are set in platinum, such as the Kohinoor diamond, part of the
British crown jewels.

Platinum and White Gold are distinctly different materials and must not be confused. Platinum is a
metallic element while White Gold is a Gold alloy, which gets its white colour due to palladium or
nickel.
Tanishq's Platinum represents excellent value for money. The price may be higher than a similar item in
gold but platinum is pure, rare, enduring, beautiful, luxurious, classic, and the perfect host for
diamonds; precious qualities that make it worth paying that little bit extra for.

THE COLLECTIONS:

The Diamond Collection

No gemstone expresses human emotions more powerfully than a diamond After all, a diamond is
timeless and finding your perfect piece of diamond jewelry is an exhilarating and unique experience.
Cut and crafted with utmost care the diamond collection renders each piece eternal.

The Wedding Collection

The bride blushes; Everyone around smiles; The shenai announces festivity; The priests chant
auspicious promises; She walks demurely; A vision of beauty; Her jewels are exquisite; Crafted by the
best in the land; As pure as the blessings bestowed on her.
The Zoya Collection

Intricacy coupled with the simplicity; The magnificence of history interwoven with linear
contemporary; Secrets of the pharaohs masked with the mystery of the cosmos; oriental art embellished
with occidental architecture; nature's bounty matched with man's ingenuity.

The Fashion Earring Collection

The Fashion earring collection', has a range of over 300 exclusive designs. Keeping in tune with the
raging popularity that earrings currently enjoy, the Tanishq design team has created the Fashion earring
collection, inspired by the evergreen Jhumkas or Karnaphools and the trendy Chandelier and delicate
Stiletto designs

The Kundan and Polki Collection

Influenced by the mughal era Kundan work requires special craftsmanship and a myriad of stages, each
crafted by a different set of highly skilled karigars.
Tanishq as a revitaliser of tradition brings to life techniques and motifs of the period through our
exquisite collections of Kundan and Polki (uncut diamonds).
It is difficult for jewelers to ensure the purity and correct grammage of the product since it involves so
many stages. However, Tanishq ensures the karatage and net wt of the product.
The Colours of Royalty Collection

Colors of Royalty a range of exquisite studded jewelry, reminiscent of the magical Victorian era. The
collection is inspired by the classic design essence and sensibilities found in the architecture, fashion,
design, drapes and patterns of the Victorian period. Tanishq has incorporated the timelessness of these
styles into exquisite jewelry designs to present a collection where fashion and tradition converge.
This line of precious stones and diamond jewelry in 18k from Tanishq comprises more than 200 pieces
and is by far the largest studded collection launched by us.
This exclusive collection was launched at the Ponds Femina Miss India 2006, where the 25 finalists
wore it. The Colors of Royalty is a line of exclusive gems and stone studded jewelry that reflects the
grandeur of India's rich past represented through the varied meanings associated with colors in our lives

The Moham Collection

The collection comprises designs, motifs inspired by nature that have been beautifully crafted to make
them the most desirable possession this season
Moham is a range of exclusive ruby studded jewelry that embodies the auspiciousness the color red has
in our lives. Rubies have been associated with prosperity, passion and have been the most coveted
gemstone for many years.It is a must have for a Indian women.This range attempts to strike a balance
between convention and fashion by creating designs suitable for the progressive Indian woman, rooted
in her tradition.
This line of Ruby studded jewelry from Tanishq is available in both 18k and 22k. This launch reiterates
Tanishq's focus on catering to region specific tastes and preferences. India offers great potential for the
Moham collection where Ruby studded jewelry enjoys great popularity and acceptance. Consumer
survey indicates that women attach great inspirational value to rubies, second only to diamonds.

The Aria Collection

Aria is a collection of variety of everyday jewellery which depict various moods and feelings:

Mysteries of love
Mysteries of passion
Mysteries of envy
Bewitching
Fascinating
Enchanting
Hypnotizing
Sensuous
Captivating
Exquisite crowns and jewelry

Tanishq, India's most innovative jewelry brand, unveiled the awe-inspiring set of crowns and its 'Colors
of Royalty' range of jewelry, specially crafted for India's leading beauty pageant, Femina Miss India
2007.

Tanishq has built itself a reputation of bringing innovative designs that suit the needs of "the ever-
changing never-changing" Indian woman.The crowns have been designed to convey the essence of
India through the use of distinctive motifs such as the traditional and auspicious 'teeka' - the Indian
touch to the contemporary styling. Crafted with painstaking detail, each of these crowns convey a
story; a story of their "ORIGIN". Inspired by interplanetary movements and colors of flora and fauna,
these tiaras are a stunning combination of trillions, baguettes, round brilliant cuts, princess, pears and
specially cut colored crystals. Each crown weighs about 450 gms and has a special spring mechanism
designed to fit perfectly on any size or shape of head.

The inspiration behind each crown is distinct and personifies the spirit of the title.

Miss Universe: This crown has the perfect cosmic blend of elements, very like the universe itself. The
large red stone, set slightly on the side, is the symbolic and stylised 'teeka'.

Miss Universe: This crown has the perfect cosmic blend of elements, very like the universe itself. The
large red stone, set slightly on the side, is the symbolic and stylised 'teeka'.

Miss World: The natural essence of this piece is enhanced by the wave-like undulating shape on the
base of the crown, sitting snugly on the forehead of the wearer. And of course the vivid rectangular blue
stone that expresses the teeka of victory, and sets off the varying hues of the sea on the rest of the
crown.

Miss Earth: This crown derives its inspiration from the essence of nature- her flora and fauna. Based on
the fabulous colours and movement of the peacock and its feathers, this stunning piece is an intriguing
study in harmony and contrast.

The jewelry crafted beautifully with interspersion of diamonds and colored stones, is an ode to the
ecstatic beauty and supreme power behind every woman. The contemporary styling has been brought
to life with sensuous curves, balance, rhythm and symmetry of classic Indian motifs in an
unconventional synthesis. These beautiful and vibrant gemstones in different shapes, sizes and colors
are sprinkled amongst diamonds to create a symphony that enhances the look of the stones and adds a
dash of color to conventional designs.

Tanishq has translated the timelessness of these designs to a modern context and brought to life a
collection where fashion, design and tradition blend perfectly.

TANISHQ FOR YOU

At Tanishq its not just the products, it’s the experience that matters. We make sure that we give you the
premium quality of not only product but service as well. Tanishq not only has an exquisite range of
designs to meet all your requirements we also offer the benefit of any modification or customization on
products.

There are host of value added services that you can avail of at Tanishq like the Golden Harvest Savings
Scheme, Gift Voucher purchase, Exchange of gold and diamonds etc.

Golden Harvest Saving Scheme

Tanishq’s “Golden harvest Savings Scheme” is one of the most lucrative savings schemes, that enables
to save each month with Tanishq and plan for wedding jewelry purchases. Your monthly installments
are safe with us, whereas savings at home could easily get spent. This scheme provides you with much
better returns than other saving options like bank deposits or post office savings schemes. In addition,
Tanishq’s special bonus at the end of the scheme period helps you stretch your jewelry budget.

How much money must one invest to enroll in the Savings Scheme?

You need to invest only Rs.500/- per month to enroll. You could also deposit a larger sum, as long as
they are in multiples of Rs.500/- You can choose from two convenient savings scheme options- an
Annual Plan (12 month installments) and an Extended Plan (18 month installments).

BONUS:
• 60% of monthly installment in Annual Plan

• 130% of monthly installment in “Extended Plan”

At the end of the scheme period, pick up Tanishq jewelry of your choice worth the amount deposited
plus the BONUS

Installment Amount (Rs) Bonus for 12 months scheme Bonus for 18 months scheme
500 300 650
1000 600 1300
1500 900 1950
2000 1200 2600
2500 1500 3250
3000 1800 3900
4000 2400 5200
5000 3000 6500

Exchange Policy in Tanishq

Exchange your old jewelry for new with Tanishq

Most retailers have a differential buy back or different rates for selling and buying gold jewelry. At
Tanishq, a single gold rate is maintained for buying or selling gold jewelry. 8% of the value is deducted
for costs involved with testing, refining and taxes for the jewelry given by the customer.

When you exchange any Tanishq gold coin with jewelry, you get the benefit of the current gold rate and
full value exchange without deduction. When you exchange any other bank’s gold coin with jewelry
there is a 4% deduction on value. This deduction is made for handling and transportation costs and for
refining the metal received on exchange

How are Diamonds exchanged in the market? How are diamonds exchanged at Tanishq?

Most jewelers exchange jewelry returned to them at the purchase price hence any appreciation in the
value of gold and diamonds are not accounted for.

At Tanishq, when you exchange diamond jewelry purchased from us it is exchanged for its current
value, thus giving you the benefit of any appreciation that would have taken place in the price of gold
or diamonds

Gift Vouchers
Gift Vouchers make the perfect gift for friends and family. These are available at all Tanishq
showrooms across India and are also redeemable across the country, Gift vouchers are available in the
following denomination Rs. 2501/-, Rs. 5001/- , Rs. 10001/- and Rs. 25001/- So now you no longer
need to worry about gifting your loved one, something of her choice!

Purity Checks

Purity checks allow lovers of the yellow metal to test the purity of the gold they already own. Playing a
significant role in this is the Karat meter, which is the most scientific measure of purity in the world. It
uses X-rays to give an exact reading of the purity of gold in just three minutes, giving the consumer an
unmatched benefit when buying or selling gold. It is in fact the most scientifically proven, non-
destructive means of testing the purity of gold. Due to its excellent precision, X-ray analysis has been
adopted by international agencies as well as by BIS in India as part of the certification process used to
Hallmark Gold.

Anuttara

You can also become the member of Tanishqs loyalty programme Anuttara and avail of various
discounts and priveleges.

TANISHQ RETAILING

Tanishq ventured into jewellery retailing in 1996 through exclusive stores, both company owned and
franchisee outlets, a concept unique to branded jewellery segment at that time. In just over a decade
Tanishq has achieved several milestones and today is the largest jewelry brand in the country with a
turnover of Rs. 1250 crores in the last fiscal. This success of Tanishq is a result of an exclusive blend of
exquisite designs, trust and reliability, innovation, highly focused communication strategy and
innovative retail strategy.
innovation have been the hallmark of Tanishq all these years. Tanishq has constantly formulated an
innovative product strategy this journey in line with the evolving consumer tastes. Tanishq Design
Studio has created exquisite and varied collections like Fashion earrings, Everydays, high-end Zoya
collection among others aimed at distinctive consumer segments. Similarly 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 brand’s philosophy of being “Revitaliser of Tradition”.

Commenting on Tanishq’s success story, Mr. C K Venkatraman, COO, Tanishq, said "We have been
able to capitalise on the trends of the local jewellery markets by building on our solid financial
strength, market-leading brand position, wide network, local sourcing strategy, a management model of
excellence and, most importantly, a philosophy of customer care. In the future, the key to building
stronger competitiveness will lie in enhancing network coverage, brand equity and logistics. Amid the
keen competition in the Indian jewellery market, only the strong player can emerge victorious."
Tanishq’s 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. Tanishq has also endeavored
to be part of every occasion in an Indian woman’s life through festive promotions, customer contact
programmes as well as through Anuttara, Tanishq’s exclusive consumer reward programme etc.
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

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 people will be able to share our mindset. Brand
Tanishq is for every Indian woman; it is at all times keyed-in to their ever-changing demands, moods
and tastes. It conveys a feeling of self-confidence and individualism that characterizes the Indian
woman. The offerings are in tune with fashion and yet do not lose touch with tradition.”

Tanishq the "Revitaliser of Tradition"

Tanishq has opened first-of-its-kind concept stores at Fort Knox Kolkata, South Extension Delhi,
Kormangala Bangalore and Bund Garden Pune . These stores reflect the new retail identity of Tanishq
the 'Revitaliser of Tradition' and combine the grandeur of the past with the reality of the present without
losing its inherent character and appeal.

The introduction of the idea of a concept store catapults Tanishq's unique brand identity in the retail
space and takes jewelry retailing in India to a new level. The concept stores will take Tanishq closer to
making it the complete jewelry brand catering to varying consumer needs and tastes across all
consumer segments and also provide customers a unique and innovative buying experience.

The theme 'Revitalizer of Tradition' has been incorporated in all the design aspects for the new concept
stores. The stores have a contemporary feel while retaining the flavor of the past. Traditional craftsmen
were used to create a period ambience so that the store replicates the authentic period look with its
stunning sand stone arches and special motifs inspired by the inlay work of the Taj Mahal for the North
and East stores and the Chettinad influences for the South stores.

Tanishq has plans to extend its retail experience to a larger consumer base by launching more concept
stores across the country.
MARKETING

Marketing Equals the Four Ps

Part of marketing is identifying the mix of "Ps" that makes your service unique. This is also called your
marketing mix. The next step is to shape your marketing mix and position its components to create a
unique identity for your business that attracts and retains customers. Your market position is one or
more selected benefits or features that make your operation unique and different.

The following steps will help you define your marketing mix:
• Identify your target market.
• Determine what the target consumer desires.
• Assess whether you have any advantages over your competition in delivering the desired service.
• Choose the position that is most valued by the consumer.
PRODUCT PLACE (DISTRIBUTION) PROMOTION PRICE (COST)
Features Location Publicity List Price
Optional Services Frequency of Service Sales Promotion Discounts
Product Quality Transportation Personal Selling Credit Terms
Staff Quality Distributors Advertising Inclusive/Not
Style Inventory Mailing List Remoteness
Brand Name
Packaging
Guarantees

Tanishq has excelled in 4 P’s of marketing and hence it is the top brand in India.
TANISHQ MARKETING STRATEGY

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. India was the second largest consumer of gold in the
world after USA. 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.
In the 1990s, a number of brands entered the Indian jewellery market. In 1995, Mumbai based
jewellery exporter, Gitanjali Jewels, started selling 18-carat gold jewellery under the brand name of
Gili. Su-Raj (India) Ltd. launched its 22-carat gold and diamond jewellery in 1997. Other well known
domestic players included Tribhovandas Bhimji Zaveri, Mehrason's and P. C. Chandra. Among the
foreign players who entered the market were Cartiers, Tiffany, De Beers and Ashton Mining.

Titan realized that there was a huge untapped market for branded jewellery in India. The critical
success factors in the business were quality, fashionable design, and good after-sales service. Titan also
observed that the changing lifestyles demanded lighter and trendier jewellery.

After its launch, Tanishq faced several problems. With its original focus on exports, Tanishq's designs
had been conceptualized for the Western markets and were introduced in India without any alterations.
Formal consumer surveys showed that though brand awareness was quite high, it suffered from several
negative perceptions. Many potential customers thought the products were over priced and associated
the brand only with the rich.

Hence, Titan decided to change its strategy on two fronts:

 Value proposition
 Retailing.

Since the European designs in 18-carat gold did not find any takers in 1997, Tanishq introduced 22-
carat ornaments. Customer surveys revealed that gold jewellery was not bought so much for design as
for value. Titan also decided to do away with the shop-in-shop formats and started retailing its
jewellery through exclusive Tanishq outlets from 1998. 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.

Titan also decided to transpose 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. The
same year, Tanishq entered the studded jewellery segment, which it had ignored for long. Titan also
tapped institutional customers also. 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. In early 2000, it made miniature
gold cars for Hyundai Motors to be given to select dealers.

The Tanishq strategy for the coming couple of years relies on two things —increasing penetration in
the domestic markets and going abroad in order to diversify its revenue portfolio.

THE JEWELLERY MARKET

Jewellery play a significant role in Indian customs and traditions, making this sector integral to the
economy and one of the fastest growing industries in the country. Worldwide, the gems and jewellery
industry has been growing at a good pace and is currently estimated at over US$ 130 billion. In India, it
accounts for nearly 20 per cent of total Indian exports. It provides employment to 1.3 million people
directly and indirectly.

The Indian market is laden with gold jewellery of varying karatage, which has seen huge appreciation
in value terms in recent times.

The Gold Rush

In the late 1990s, the Indian jewellery market witnessed a shift in consumer perceptions of jewellery.
Instead of being regarded as only an investment option, jewellery was being prized for its aesthetic
appeal. In other words, the focus seemed to have shifted from content to design. Trendy, affordable and
lightweight jewellery soon gained familiarity. Branded jewellery also gained acceptance forcing
traditional jewellers to go in for branding. Given the opportunities the branded jewellery market
offered; the number of gold retailers in the country increased sharply.

Branded players such as Tanishq, Oyzterbay, Gili and Carbon opened outlets in various parts of the
country. Traditional jewellers also began to bring out lightweight jewellery, and some of them even
launched their in-house brands.

However, the share of branded jewellery in the total jewellery market was still small (about Rs. 10
billion of the Rs. 400 billion per annum jewellery market in 2002), though growing at a pace of 20 to
30 percent annually.

The branded jewellery segment occupied only a small share of the total jewellery market because of the
mindset of the average Indian buyer who still regarded jewellery as an investment. Moreover,
consumers trusted only their family jewellers when buying jewellery.

Consequently, the branded jewellery players tried to change the mindset of the people and woo
customers with attractive designs at affordable prices.

Gold Jewellery Market in India

Before the liberalization of the Indian economy in 1991, only the Minerals and Metals Trading
Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to import gold.

The abolition of the Gold Control Act in 1992, allowed large export houses to import gold freely.
Exporters in export processing zones were allowed to sell 10 percent of their produce in the domestic
market.

In 1993, gold and diamond mining were opened up for private investors and foreign investors were
allowed to own half the equity in mining ventures.

In 1997, overseas banks and bullion suppliers were also allowed to import gold into India. These
measures led to the entry of foreign players like DeBeers, Tiffany and Cartiers into the Indian market.
In the 1990s, the number of retail jewellery outlets in India increased greatly due to the abolition of the
Gold Control Act.'

This led to a highly fragmented and unorganized jewellery market with an estimated 100,000
workshops supplying over 350,000 retailers, mostly family-owned, single shop operations.

In 2001, India had the highest demand for gold in the world; 855 tons were consumed a year, 95% of
which was used for jewellery.
The bulk of the jewellery purchased in India was designed in the traditional Indian style. Jewellery was
fabricated mainly in 18, 22 and 24-carat gold. As Hallmarking was not very common in India, under-
caratage was prevalent.

According to a survey done by the Bureau of Indian Standards (BIS), most gold jewellery advertised in
India as 22-carat was of a lesser quality.

Over 80% of the jewelers sold gold jewellery ranging from 13.5 carats to 18 carats as 22-carat gold
jewellery. The late 1990s saw a number of branded jewellery players entering the Indian market.

Titan sold gold jewellery under the brand name Tanishq, while Gitanjali Jewels, a Mumbai-based
jewellery exporter, sold 18-carat gold jewellery under the brand name Gili.

Gitanjali Jewels also started selling 24-carat gold jewellery in association with a Thai company, Pranda

Su-Raj (India) Ltd. launched its collection of diamond and 22 -carat gold jewellery in 1997. The
Mumbai-based group, Beautiful, which marketed the Tiffany range of products in India, launched its
own range of studded 18-carat jewellery, Dagina.

Cartiers entered India in 1997 in a franchise agreement with Ravissant. Other players who entered the
Indian branded gold jewellery market during the 1990s and 2000-01 included Intergold Gem Ltd.,
Oyzterbay, Carbon and Tribhovandas Bhimji Zaveri (TBZ).

Gold Jewellery Becomes Fashion Accessory

Till the early 1990s, the average Indian bought jewellery for investment rather than for adornment.
Jewellery made of 18-karat gold was not favored as it was considered a poor investment. Confidence in
the local jeweller was the hallmark of the gold jewellery trade in India. A jeweller or goldsmith in a
local area had a fixed and loyal clientele.

The buyer had implicit faith in his jeweller. Additionally, the local jeweller catered to the local taste for
traditional jewellery. However, since the late 1990s, there was a shift in consumer tastes: women were
increasingly opting for fashionable and lightweight jewellery instead of traditional chunky jewellery.
There was a rise in demand for lightweight jewellery, especially from consumers in the 16 to 25 age
group, who regarded jewellery as an accessory and not an investment. The new millennium witnessed a
definite change in consumer preferences. According to Samrat Zaveri, CEO of Trendsmith, "Research
shows that the Indian jewellery sector is in the transition phase with consumers' desire for possession of
jewellery for its aesthetic appeal and not as a form of investment."

In October 2002, Trendsmith conducted a survey to understand the shifting needs, motivations and
aspirations of consumers in the jewellery market, and to identify new trends and opportunities. The
research study arrived at the following conclusions:

• The Indian market was witnessing an accelerated shift from viewing jewellery as an investment to
regarding it as aesthetically appealing ornaments. The focus had shifted from content to design.
• The younger generation was looking at trendy, contemporary jewellery and clearly avoiding heavy,
traditional gold jewellery.

• The consumer wanted a wider selection at a single convenient location and expected an international
shopping experience.

• The Indian consumer was willing to experiment with new designs.

In the late 1990s and early 2000s, with the increase in the number of designers from design schools
such as the National Institute of Fashion Technology (NIFT), a wide range of new designs became
available. In addition, the growing number of manufacturers needed a retailing platform with global
and national reach. All these led to the proliferation of branded jewellery players.

Tanishq - Strategies for Wooing Customers

In the late 1990s, players in the branded gold jewellery market formulated strategies for wooing
customers. According to Jacob Kurian (Kurian), Chief Operating Officer of Tanishq, the challenges
were many.

As the jewellery market was highly fragmented, lacked branding, and allowed many unethical practices
to flourish, Tanishq worked hard on a two-pronged brand-building strategy: cultivate trust by educating
customers about the unethical practices in the business and change the perception of jewellery as a
high-priced purchase.

Said Kurian, "We are changing the attitudes of customers from blind trust to informed trust." To
increase its marketshare, Tanishq formulated a strategy for luring people away from traditional
neighborhood jewellers. Tanishq's strategy was to create differentiation and build trust.

According to Kurian, the first part of the strategy was "to provide a point of differentiation in a highly
commoditized category – which is the whole point of branding."12 The second part of the strategy was
to project Tanishq as an unimpeachable mark of trust. According to Kurian, "If differentiation plays the
role of primary attraction, trust takes care of lifelong loyalty."13 One way to create differentiation was
through design.

The emphasis had to be on design because local jewellers could offer to design any pattern according to
the customer's specifications. For a national brand a generic design concept with regional variations
had to be evolved. For this, Tanishq set up a seven member in-house design team and also outsourced
designs from freelance designers.

The designers travelled the length and breadth of the country to get feedback on Tanishq's designs and
learn about customer preferences. On the basis of this feedback, each showroom could select the
designs it would carry. To stay ahead of competition from local jewellers, Tanishq decided to focus on
quality control. In 1999, it introduced caratmeters which showed the purity of gold.

In fact, Tanishq's USP was the purity of its gold. Accordingly, the company's ad campaigns emphasised
the purity aspect of all Tanishq ornaments. In November 2002, Tanishq introduced a new collection of
jewellery called 'Lightweights.'

The collection featured neckwear, earrings, bangles, rings and chains in 22 karat gold with prices
starting at Rs 1,100. It also launched Lightweight Diamonds, with prices starting at Rs 3,000. Tanishq
focused not only on urban markets, but small town markets as well. Real estate was less expensive in
the small towns than in large urban centres.
Besides, competition from stores in small towns was less stiff than competition from the large jewellery
stores in the metropolitan cities. According to Kurian, the best returns on investment came from small
towns.

All That Glitters is Not Gold

Branded jewellery players will continue to face lot of competition from local jewellers. In order to gain
marketshare, they will have to come up with designs that customers want and win the trust and
confidence of consumers by hallmarking and demonstrating the purity of the gold used by them.

To compete with traditional players, branded players must also find some way to differentiate
themselves. While the success of a particular brand will depend on differentiation, affordability and
quality will be a key element in sustaining a brand. In addition, branded players require focused
advertising and astute salesmanship to compete with traditional jewellers.

Besides the major brands- Tanishq, Carbon, Oyzterbay, Gili and Trendsmith- several regional players
have opened branches to leverage the trust and reputation that they have built up over the years. This is
going to add to the competition in the branded jewellery market. Most of the branded jewellery players
in India focused on yellow gold; only a few of them experimented with the pink and white forms of
gold. Some of the players also used diamonds and platinum, which appear to have a good future in the
Indian jewellery market
SOME OF TANISHQS COMPETITORS

Asmi

Asmi, 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.

Nakshatra Diamonds

The world renowned Nakshatra diamonds were launched in 2000, with an equally dazzling Aishwarya
Rai as its brand ambassador. In the present scenario Nakshatra diamonds occupy a leading position in
the fashion diamond jewelry segment. The traditional diamond is the most wanted design among
Nakshatra diamonds.
Nakshatra diamonds claim to shine your glamour and love life. They have aptly put their slogan as
"brightest circles of light." Elegant and graceful Nakshatra diamonds are the epitome of passion,
attitude and independence.

Gili

Gili was launched in 1994, targeting mainly the youth who wanted to celebrate Valentine's day. Since
then, the brand has clocked a turnover of Rs. 90 crores.
Nirvana Diamonds

Nirvana Diamonds from Fine Jewellery (I) Ltd. was launched in 1987 in India. Nirvana diamonds are
targeting at fashion conscious, modern and independent thinking women. Internationally acclaimed
Nirvana diamonds are manufactured by using state-of-the-art technology. As a proof of their quality
Nirvana was among one of the brands to offer lifetime warranty to its consumers.

D'damas Diamonds

D'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
Adora Diamonds

Adora Diamonds were launched in India in July 2003 by Mumbai based Concept Jewelry (India) Ltd.
On the present day the still expanding retail network centers of Adora expands to 117 outlets in 47
cities of India. Adora means glory in Spanish and claims that its diamond collection is themed on love.
Adora diamonds are for adornment of every moment, occasion, and phase of life through its up and
downs.The Swaranjali signature collection of living legend Lata Mangeshkar is a unique feature of
Adora diamonds. Each piece of Swaranjali collection is conceptualized and approved by Lata
Mangeshkar and bears her laser printed signature.

Kiah Diamonds

World's largest volume manufacturer of diamonds-Sheetal manufacturing Company (SMC) launched

its exquisite Kiah diamond collection in October, 2004. Kiah diamonds are claims to be for celebrating
womanhood. The brand name 'Kiah' means beautiful place. On the latest Kiah diamonds have won the
Best Showroom in the DTC Diamond Season for 2005-2006.

TANISHQ – MARKET RESEARCH

MARKET research On TANISHQ

Tanishq emerges as the best known brand with the highest awareness and recall. The difference
between the leaders and the followers is always greater when the former have a head start. And when
the pace and efforts of the leaders intensify, the possibility that they will continue to be at the top is a
foregone conclusion. The Solitaire - TNS Survey shows that Tanishq is the best known brand across the
three cities of Mumbai, New Delhi and Bangalore, a finding which lends credence to the leadership
factors. More than 65 per cent of the target audience had no hesitation in coming up with the name,
proving that the extensive branding exercise undertaken by Tanishq (a division of the Tata group
company, Titan Industries) has paid off well. Two decades in the business, over 70 retail outlets across
the country and pioneering efforts to make jewellery buying into an unforgettable shopping experience
- all these factors combined to make the brand into a household name.

India's Top Ten Best Known Jewellery Brands

The Survey

The Indian jewellery industry is seeing unprecedented activity on the market front with new entrants
coming in all the time. Consumer behavior also is undergoing a transformation. The Solitaire-TNS
Survey to find out India's best known brands (and other pertinent details) was initiated with a view to
assist and equips the industry with information that goes beyond the ordinary.

"Men buy products while women choose brands," says model-turned-designer and CEO of a billion
dollar company, Kathy Ireland, a fact which jewellery brand managers in India will not refute. Hence
the Solitaire - TNS Survey across Mumbai, New Delhi and Bangalore was targeted solely at women.

While the sample size was small, 600+, the fact that the target group was covered in and around
shopping malls, banks, corporate areas and commercial zones, made the sample more relevant to the
objectives. The survey was conducted through personal interviews over a period of 15 days.

What Did Women Really Buy?

An interesting question is whether there is a difference in what women consider as India's best brands
and what they finally opt for. Quite naturally, price structure and affordability are in conflict with
aspirations. However, there has been little or no difference observed in our target group in their choices.
This may be because most jewellery brands have a varied price range that caters to women belonging
to different segments of society. Even in a high-profile brand at least a few lines are made affordable to
most people. Thus, the toppers in the best known category come up trumps even here.

What Woman Want?

While Tanishq and a few other regulars do occupy women's mind space, the good news for other
brands is that women are not unduly influenced by the aspirational longings of their hearts. A long
history of fascination for the yellow metal as a status symbol and as an instrument of security and its
easy convertibility to cash has most women, both working and non-working, picking up gold jewellery
without precious stones as their most preferred jewellery. With the economy moving upwards and
income levels increasing, gold consumption in India is showing tremendous growth. WGC reports that
there has already been a 50 per cent increase in the first half of 2005 over the same period last year!
With established jewellery manufacturers (read brand owners) recognizing the everlasting appeal of
gold among Indian women, jewellery brands in the future might see more visible usage of gold.

 22 carat yellow gold jewellery is the most preferred gold jewellery.

 Diamond studded jewellery is the next highly preferred.
 40 per cent of the working women are willing to try new jewellery outlets.
 32 per cent of non-working women opt for this too.
Where Do Women Buy From?

As constant as their liking for gold, Indian women are totally rooted in the choice of the place from
where they buy their jewellery. In this case, the traditional/independent jeweller seems to have no
competition at all from the new generation brand stores, malls, etc. But there are changes happening.
Working women, the survey points out, are more open to trying out branded and new retail outlets.
With an amalgamation between the old and the new marketing strategies, independent/family jewellers
have also created indelible brands. Thus, in the final reckoning, most women are brand-conscious and
opt either for the ones that are highly visible or those that have been embedded in their buying culture
through family association.

TANISHQ - THE TURNAROUND STORY

When we started out we didn't think that we could achieve this, but now being jewellers to the nation
doesn't seem so distant."
- Tanishq COO, Vasant Nangia, in March 2000.

The Unsuccessful Launch

In 1995, Titan Industries, India's leading manufacturer of watches, launched the Tanishq range of gold
watches and jewellery. Till then, the Indian jewellery market was to a large extent unorganized, with a
few recognized names such as Tribhovandas Bhimji Jhaveri and Mehrason's. Tanishq, an entirely new
concept in the Indian market, thus had to struggle hard to be accepted by the customers. Industry
watchers were extremely skeptical of Tanishq and doubts were being cast over its prospects. Tanishq
began by offering jewellery in the 18-carat gold range, with designs borrowed heavily from
contemporary European brands. The company justified its decision saying that it wanted to be
'different' from the traditional Indian offerings.

Tanishq performed very badly in the next three years, posting a huge loss in 1997-98, proving its
detractors right. Jacob Kurian, Tanishq's chief operating officer admitted, "Tanishq, as a concept, was
far too ahead of its times." Even if one agreed with Kurian, it could not be denied that Tanishq did
commit mistakes.

Analysts decreed that the company's strategies were wary. At this point, Tanishq took various steps to
correct the mistakes it had committed and very soon, posted its first ever operating profit in 1999. In
1999-00, sales doubled to Rs 1532 million against Rs 743.8 million recorded in 1998-99 and reached
Rs 2000 million in 2000-01. Tanishq fared equally well on the export front also with heavy exports to
UK, US, Australia and West Asia.

Tanishq was the largest overseas chain in US with 1,200 outlets. In the year 2000, exports contributed
10% to the company's turnover. The story of Tanishq, once written off as a losing proposition, making a
remarkable turnaround was an example of a company single-mindedly working to make its own mark
in the tradition bound Indian jewellery market. Behind this success was, of course, a well-planned and
well-executed marketing plan.

Background Note

Titan Watches Limited was promoted jointly by Questar Investments Limited (a Tata group company)
and Tamil Nadu Industrial Development Corporation Limited (TIDCO). The company, incorporated in
July 1984 in Chennai, was started in technical collaboration with France Ebauches (a French company),
one of the world's largest manufacturers of watch movements. Initially involved in the watches and
clocks business, Titan later ventured into the jewellery businesses. The company was India's leading
manufacturer of watches, marketed under the Titan and Sonata brand names with a 25% share of the
total domestic market.

Titan established its first manufacturing facility in Hosur, Tamil Nadu and its first satellite watch
assembly unit at Dehradun, Uttar Pradesh was started in 1990. In 1992, Titan set up a joint venture,
Timex Watches Limited, with Timex Corporation of USA to market Timex watches in India.1 And in
1995, Titan changed its name from 'Titan Watches Ltd.' to 'Titan Industries Ltd.' in order to change its
image from that of a watch manufacturer to that of a fashion accessories manufacturer. In the same
year, it also started its jewellery division under the Tanishq brand. At this point of time, the jewellery
business was highly localized and the concept of branded jewellery did not exist. In the late 1990s,
India had around 0.2 million jewellers scattered across the country.

Jewellery had predominantly been used as an investment rather than adornment. Hence, a change in the
perception of jewellery from an asset to a fashion accessory was extremely difficult to bring about.
People generally bought gold from the same family jeweller they had trusted implicitly for generations.
Moreover, these jewellers made the jewellery to order and often bought back their products at the
prevailing market rates.

Thus, from the very beginning, Tanishq found it hard to overcome the Indian consumer's preference for
buying traditional jewellery only from family jewellers. The sleek and contemporary designs being
offered did not go down well with the Indian customer who was used to heavy, traditional designs.

Vasant Nangia, erstwhile Chief Operating Officer, Tanishq said, "When we launched the Tanishq range,
our designs were not appreciated initially as they were believed to be extremely Western. Also, we
offered only 18 carat gold." Over a period of time, Tanishq's research revealed many other loopholes in
its strategies.
Setting Things Right

Tanishq found out that it had gone wrong mainly in two areas - the product proposition and retailing.
Initially with a focus on the export market, its designs were predominantly Western, and the same line
of jewellery was sold in India as well. However, when it shifted its focus to the domestic market, it was
unable to sell these designs. Therefore the first step was to change the brand positioning from that of an
elitist and Westernized offering to a more mainstream, Indian one. The 18-carat jewellery range was
expanded to include 22 and 24 carat ornaments as well. Tanishq also made attempts to redefine
traditional styles in its designs. Tanishq realized that, given the diverse nature of Indian ethnicity, it
would have to cater to tastes of all regions

Therefore, the emphasis shifted from the erstwhile modern designs to more ethnic ones and traditional
ornaments (based on designs from various states) were launched. The company also began seasonal and
localized promotions based on Indian festivals, such as during Durga Puja in West Bengal, Onam in
Kerala, Diwali in north India, etc. Johnson Verghese, divisional head, sales and marketing, said, "We
also decided to go in for transmigration of designs. So we not only got in more Indian motifs but also
started stocking typical designs from Tamil Nadu in Mumbai and those from Bengal in Delhi. These
designs, though Indian, provided variety to what the people in a particular area were used to seeing."

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.

Tanishq gave complete freedom to the retail outlets to pick up designs, which they thought would sell
in their stores. Almost all the outlets stocked the 'best selling' range of designs, which did well across
the country.

Tanishq was now pitted directly against the traditional jewellers who were offering similar ornaments.
In order to add some value proposition to rise above the competition, Tanishq decided to address the
issue of gold purity, which was most important to the customers.

Traditionally, conventional jewellers used the touchstone2 to test the purity of gold. Apart from the fact
that the customers did not trust the method, it was also alleged that a slight amount of gold was always
lost while testing. The customers had to accept this for want of an alternative. In 1999, Tanishq
introduced the revolutionary concept of Karatmeters in its retail boutiques. The Karatmeter used X-rays
to give an accurate reading of the constitution of gold in the ornament within three minutes. Imported
from Germany at a cost of Rs 1 million each, Karatmeters though expensive, proved to be the biggest
USP for Tanishq in the coming years.

Fact, its sales increased by 20-30%. The concept was later on heralded as a bold step towards
professionalizing the Indian jewellery business. In an attempt to elbow out competition, Tanishq
conducted tests on 10,000 ornaments selected at random. In some cases the caratage was found to be as
low as 10% and almost 65% of the gold tested was below 22 carats. As the caratage offered was on the
lower side in traditional jewels, the jewellers kept the making charges very low to entice customers.
This had become the norm all over the country. Tanishq had to struggle hard to break this convention.

As the concept of Karatmeter became more widely known, customers began to realize that the rates
they were paying for Tanishq jewellery were indeed justified. A Tanishq official commented, "They
have begun to understand the total value proposition that Tanishq offers."

An all-India customer satisfaction survey conducted by Tanishq in 2001 revealed that over 50% of all
Tanishq customers intended to make it their jeweller, replacing many long-standing relationships with
the traditional jeweller. When Tanishq was launched, it sold most of its products through multibrand
stores. This did not help the Tanishq brand to make its mark. Having realized this, Tanishq decided to
set up its own chain of retail showrooms in 1998.

This proved to be a very wise move as sales picked up almost immediately. By July 2001, it had 47
'Tanishq boutiques' in 37 cities – 12 were in the metros - Delhi, Mumbai, Kolkata, Chennai and
Bangalore, the rest in smaller cities with a population of at least 0.5 million such as Trichy, Nagpur,
Amritsar and Patna.

The focus on smaller cities paid off well with the annual growth being as high as 150% as compared to
the 45% growth in metros. The number of boutiques was expected to reach 50 by the end of 2001 and
to 70 by 2002. Tanishq's efforts to standardize the price of its ornaments proved to be another milestone
in its success.

Gold prices differed across the country as they were based on different parameters concerning the local
markets. In a bid to control gold price variations in different parts of the country, Tanishq decided to
have a standard gold price across all its showrooms from March 2000.
The standard price was made binding on all Tanishq showrooms. Tanishq based its gold prices on
international exchange prices, resulting in prices often being lower than the local market prices. Nangia
said, "We already have a kind of standard pricing in place, but this would represent a formalization of
that system to the public." Tanishq even had plans to link directly with the London Metal Exchange
(LME) for daily quotes in the future. Tanishq set up an ultra-modern and large-scale manufacturing unit
in Hosur, Tamil Nadu at a cost of Rs 600 million. The unit had facilities like refining, alloying and
stone casting and a dust-extraction system that kept gold losses down to 2% of the raw material while
local jewellers typically lost 8-10%.

This in-house manufacturing facility was the main reason, which enabled Tanishq to charge the same
price across the country. One of the company's 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 a pendant) and offered a range,
which far exceeded that offered by any other jeweller. All Tanishq outlets gave a 100% return guarantee
on its brand of jewellery and also exchanged other jewellery after deductions depending on purity.

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. This gave the company the benefit of benchmarking
against local and international players and also aided in improving repeat purchases. As a result,
Tanishq was able to directly link the remuneration of franchisees with customer satisfaction. The
company's corporate gold gift scheme ('When you want to say thank you, say it in gold'), launched in
December 1998 proved to be a major success. Tanishq delivered 50,000 customized gold coins to 0.25
million Maruti car owners nationwide as part of the 15th anniversary celebrations of Maruti Udyog. By
2001, the scheme accounted for almost 5% of the turnover and over 30 corporate clients like Coca-
Cola, the UB Group, Whirlpool, the TVS Group, Ceat and Liberty Shoes

The communication and promotion budget was increased from Rs. 65 million in 1999-2000 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 Tanishq's 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. The communication focused on
design and quality instead of the price.

Future Prospects

The Indian branded jewellery market, though nascent, grew at the rate of 20-30% during 1998-2000.
Besides Tanishq, other major players included Intergold, Gili and Carbon. However, in the Rs 400
billion Indian jewellery market, Tanishq's share was not even 1%.

Not willing to accept this as a 'poor show,' Tanishq saw it as a vast opportunity instead. The company
planned to attain a 2% market share in the next few years. Kurian said, "The jewellery market is one of
the largest consumer segments in the country. It has an estimated 2,50,000 retailers with no national or
international brand and no corporate player.

Titan believes that this market is right for consolidation. A consumer-oriented, highly ethical corporate
player will have great opportunity. Our growth rates in the past three years have fully substantiated this
hypothesis." Tanishq had ambitious plans to invest in information technology and utilize Intranets and
the Internet to link all of its showrooms to one another. There were also plans to do online monitoring
of sales and design popularity as well as using the Internet to place orders. The Intranet was to contain
a photo collection of all the designs in all the stores so that even those not in stock in a particular store
could be ordered by customers. In a highly innovative move, Tanishq tied up with Countrywide
Finance for providing pre-approved credit line to the customers at selective outlets. This was expected
to boost sales significantly in the future. In May 2000, Tanishq unveiled plans to surpass its parent
company's turnover by 2002. Jacob Kurian who had taken over as the CEO the same month, said, "We
have finally figured out the jewellery business and should be solidly profitable, shorn of any caveat,
this year.”
PROMOTION, ADVERTISING & PUBLIC RELATION

Promotion

Tanishq launches ‘Free gold coin offer’ campaign

July 19, 2008 (India)

Tanishq launched its "Get Gold free with Diamonds" promot