TANISHQ: POSITIONING TO CAPTURE THE

INDIAN WOMAN’S HEART

SU
BMITTED BY

Y.SAI SHANKAR
TPS-B
18-101

Summary
India is the largest consumer of gold in the world to be followed by China
and Japan. India is emerging as world's largest trading centre of this
commodity with a target of US$ 16 bn. set for 2010.

Placed against targets to achieve 65 percent of the international market

by 2010, India’s gem and jewellery industry has registered an impressive
21.33 percent growth in exports

India dominates the world’s cut and polished diamonds (CPD) market. In
value terms, the country accounts for approximately 55 percent of global
polished diamond market and nearly 9 percent of the jewellery market.
According to GJEPC's provisional estimate, cut and polished diamonds
registered 19.06 percent growth in exports at US$ 7.11 mn.

India accounts for 80-85 per cent of the world’s CPD market in volume
terms, 55-60 per cent in value terms and about 90 per cent in unit terms.
Other major players in the global CPD market are Belgium and Israel.

Surat contributes 90 percent of India's total diamonds exports.

India's domestic branded jewellery market is estimated at US $150 bn.

There are 13 bullion importing banks in India.

India's Gem and Jewellery Exports Promotion Council (GJEPC) is aiming at
turning India into an International Diamond Trading Centre.

Since India already enjoys 80-85 per cent of the world CPD market, scope
for further growth in diamond exports is limited. Hence, if India's gems
and jewellery sector is to substantially increase exports, the best bet lies
in the jewellery sub-sector. Given the fact that the global market for
stone-studded jewellery is expanding, there is scope for expansion in
India’s diamond-studded jewellery exports as well.

With or without diamond-studding, gold jewellery is a market where India

has tremendous scope for export growth. India is the world’s biggest
consumer of gold according to World Gold Council Statistics. However,
India’s exports of gold jewellery (13 per cent of its total gem and jewellery
exports) are negligible: less than 2 per cent of the US$ 80 bn global
market.

Decades of insulation from the world markets has also not helped
jewellery design evolution in India. India is by far behind Hong Kong, Italy
and Germany in terms of jewellery design. This is another roadblock to
exports. WGC has therefore introduced international jewellery designing
competitions among the Indian artisans.

GJEPC expects 10 per cent annual growth in India's jewellery exports in

coming years. This is the only area in the gems and jewellery sector
where export growth potential exists since, as said above, India's CPD
exports already accounts for 80-85 per cent of the global market, thus
reducing the scope for further expansion.

Customs duty on rough diamonds and coloured gem stones, semi-

processed, half-cut and broken diamonds has been abolished while that
on cut & polished diamonds and coloured gemstones has been reduced
from 15% to 5%. The reduction in the customs duty on imported gold to
Rs 100 (US$ 2) per 10 grams from Rs 250 (approx. US$5) is a step in the
right direction, so thinks the industry.

Company Overview:
In 1984, Questar Investments Limited (a Tata group company) and the
Tamil Nadu Industrial Development Corporation Limited (TIDCO) jointly
promoted Titan Watches Limited Initially involved in the watches and
clocks business, Titan later ventured into the jewellery businesses. 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.

Among the branded jewellery players in the Indian market, Tanishq is

considered to be a trendsetter. When it was launched in 1995, Tanishq
began with 18-carat jewellery. Realizing that such jewellery did not sell
well in the domestic market, the 18-carat jewellery range was expanded
to include 22 and 24-carat ornaments as well. When Tanishq was
launched, it sold most of its products through multibrand stores. In 1998,
Tanishq decided to set up its own chain of retail showrooms to create a
distinctive brand image. By 2002, Tanishq retailed its jewellery through 53
exclusive stores across 41 cities. To meet increasing demand, Tanishq
planned to open 125 stores by the end of 2009 and offer a range of
'wearable' products with prices starting at Rs. 400.

Tanishq is India's largest, most desirable and fastest growing jewellery

brand in India. Tanishq today is India's most aspirational fine jewellery
brand with an exquisite range of [pic]gold jewellery studded with
diamonds or colored gems and a wide range of equally spectacular
jewellery in 22Kt pure gold. Exquisite platinum jewellery and designer
silverware is also part of the product range.

Tanishq promises superior quality jewellery with purity in gold. They claim
and deliver the exact carats and weight that they promise. Impurity in
gold and not delivering what was promised is one of the main problems
the consumers face when going for gold purchase. Tanishq eliminated this
and has built its brand in trust. Tanishq now stands for quality and purity.
They even have gold meters where one can check the purity of gold.

It is first and only jeweler who guarantees the purity of its gold jewellery
and certifies the quality of its diamonds and colored gems in writing. Thus
it has established itself as a highly ethical player in a market that was
rated as having the highest incidence of underkaratage (Bureau of Indian
Standards).

Widely acknowledged as a design leader, Tanishq is known for its ability

to develop specialized design collections. Tanishq is the only jeweler that
houses a full-fledged design studio with a team of several international
award winning Indian designers. Tanishq was recently adjudged the Most
Admired Jewellery brand (for the third consecutive time) [pic]in India at
the Images Fashion awards. It has also been judged as the Images
Retailer of Year in the fashion category.

Distinctive positioning and customer experience. Yet another aspect of

Tanishq that sets it apart is a whole new jewellery buying experience
offered by its exclusive retail showrooms. Tanishq has not only developed
a national retail chain with uniform and transparent practices and policies
but also maintained consistency of retailing standards across all these
showrooms on an ongoing basis.

It has a distinctive positioning [pic]in India as it is known for its high

quality and jewellery with international standards. Also, since they have
many stores across the country they give guarantee on their jewellery and
also offer to repair it free of cost anywhere across the country.

Customer Overview:

There was always lack of trust among the consumers for their jewellers.
Tanishq removed that with a promise of purity. Hence what it did [pic] in
India it can replicate across the globe. Offer a totally new perspective to
Jewellery buying especially when it comes to exquisite oriental jewellery.
Oriental Jewellery across the world is usually found in flea markets or
place like China Town or Indian Markets. Going into the main markets in
the Western world will give Tanishq the edge. The market can be
segmented into two categories of customers:

• Customers who by gold for investment

• Customers who buy gold for embellishment

SWOT Analysis
Strengths

• Capital

• Flexibility
• Innovative

• Modern Style

• Excellent & outstanding advertisement strategy

Weaknesses

• ‘Not for me’

• Gold Purchase Rituals

• Gold Perceptive

• Limited Outlets

Opportunities

• TATA Support

• The Wedding Market

• Globalization

• The Rural Market

Threats

• Gold Plus

• Local Jewellers

• Gold Significance

• Government Regulations.

Key issues

• Heavy Competition

• Failure of Gold watches

• Failure to tap wedding Market

• ‘‘Not for Me’’ perception

• Internal conflicts between Tanishq and Gold plus

Solutions
• Tanishq & Gold Plus, complement each other

• Understand their market territories & Characteristics

• Capitalize their strengths

• Cross Branding the market to own a larger share

• Going Global and teaming up with Indian entertainment products

internationally