aa Tanishq- The Turnaround Story

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

Started in 1995, Tanishq is the jewellery business based in Bangalore launched by TITAN.

The company wanted to be different by The company wanted to be different by offering 18 carat gold with offering 18 carat gold with contemporary European designs. contemporary European designs. Company made losses in 1995-96 , 1996-Company made losses in 1995-96 , 1996-97 ,1997-9897 ,1997-98.

By 2001,Tanishq was the largest overseas chain in the U.S. With 1200 stores and 10% of its turnover was from its exports.

Introduction

Titan Watches Limited was promoted by QIL & TIDCO.

The company was India’s leading manufacturer of watches marketed under Titan & Sonata.

Later Titan ventured in jewellery business with the name Tanshiq.

Contd….

Tanishq introduced innovations like Karat meter, the only non destructive means to check the purity of gold.

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

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.

Contd….

S w O T

STRENGTH

Well executed marketing plan with unique strategies.

Largest overseas chain in U.S.

Customer servies enhancement.

In-house manufacturing enabled it to charge same price across the country.

In-house designers.

WEAKNESS

Escalated gold price.

Share was not even 1% in Indian jewellery market.

Introduced with high standards.

OPPORTUNITIES

Global market .

Customized jeweler design.

Own retail stores.

Indian wedding market .

Introduced revolutionary concept of karat meter.

THREATS Competitors (Inter gold, Gili and Carbon).

Fashion trends keeps on changing .

Varying gold prices.

Local markets.

The changes in Gold Prices

Market Strategies

TRANSMIGRATION OF DESIGNS: Tanishq started stocking typical designs from Tamilnadu in Mumbai and those from Bengal in Delhi . yet being Indian , these designs provide variety to customers.

CONTINOUS CHANGE IN DESIGNS : At least 10% of designs were changed at quarterly basis and fresh stocks were added to the stock.

OWN CHAIN OF RETAIL STORES : At starting phase the company sold it’s product through multibrand stores . But now it has 47 ‘Tanishq Boutiques’ in 37 cities –including metros.

Tanishq vs OthersTanishq vs Others

Contd…… INTRODUCTION OF KARAT METER : To check the purity of gold without wasting it , they introduced Karat meter .It was imported from Germany and it uses X-rays to check the purity of gold . It proved to be the biggest USP for Tanishq .

RETURN GUARANTEE & EXCHANGE OFFER: They provided 100% return guarantee on it’s brand of jewellery and also exchanged other jewellery after deductions depending on purity.

STANDARDIZED PRICE : Tanishq decided to have a standard gold price across all it’s showrooms from March 2000.

Contd…… ENTRY LEVEL PRICE: The entry level price was as low as Rs.600 (for a pendant).

LINK WITH (LME): Tanishq linked directly with London Metal Exchange for daily quotes of gold in the future.

LAUNCH OF (CSMM): Tanishq started customer satisfaction measure program with the help of CSMM[Customer Satisfaction Measure Management],an associate of IMRB. CSMM tracked customer satisfaction parameters from Tanishq on a quarterly basis . This gave the company the benefit of benchmarking against international & Local players.

Contd…… CORPORATE GOLD GIFT SCHEME: This scheme was launched in December 1998 and it proved to be a major success . Tanishq delivered 50,000 ‘customized gold coins’ to 0.25 million Maruti car owners nationwide as a part of the 15th anniversary celebrations of Maruti Udyog. This scheme accounted for about 5% turnover by 2001, and over 30 corporate clients like Coca Cola , Whirlpool , The UB Group , The TVS Group , CEAT & Liberty Shoes.

SEASONALPROMOTION: They promoted their products based on Indian festivals.

Future Strategies

Consumer – oriented.

Highly ethical corporate player.

Investment in IT.

Online ordering of gold.

Global branding strategy.

Expected to boost their sales.

Planning to surpass its parent company’s turnover

Recommendations

Building Relationship

Expand their markets

Launching of low price products

Promoting their products for wedding

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