Avi Batra

BBA – Semester II

Roll No. 4501/09

Comparison of two companies as per

Principles of Marketing

Jewellery Industry
 Table of Contents

Chapter 1- Introduction To The Industry

Evolution Of Jewellery Industry

Introduction To Indian Jewellery Industry

SWOT Analysis Of The Industry

Current Scenario Of The Industry

Future Outlook Of The Industry

Chapter 2- Company Profile

Tanishq

Orra

Chapter 3- Research Methodology

Objective

Scope
Data Collection

Limitations

Chapter 4- Comparative Analysis

SWOT Analysis - Tanishq

SWOT Analysis - Kiah

Chapter 5- Conclusion
Bibliography
Chapter 1- Introduction to the Industry

Evolution Of Jewellery Industry In India

The Indian subcontinent has the longest continuous legacy of jewellery making anywhere since
Ramayana and Mahabharata times. While Western traditions were heavily influenced by waxing
and waning empires, India enjoyed a continuous development of art forms for some 5000 years.
One of the first to start jewellery making were the peoples of the Indus Valley Civilization. By
1,500 BC the peoples of the Indus Valley were creating gold earrings and necklaces, bead
necklaces and metallic bangles. Before 2,100 BC, prior to the period when metals were widely
used, the largest jewellery trade in the Indus Valley region was the bead trade. Beads in the Indus
Valley were made using simple techniques. First, a bead maker would need a rough stone, which
would be bought from an eastern stone trader. The stone would then be placed into a hot oven
where it would be heated until it turned deep red, a colour highly prized by people of the Indus
Valley. The red stone would then be chipped to the right size and a hole drilled through it with
primitive drills. The beads were then polished. Some beads were also painted with designs. This
art form was often passed down through family; children of bead makers often learnt how to
work beads from a young age.

A female skeleton (presently on display at the National Museum, New Delhi, India) wears a
carline an bangle (a bracelet) on her left hand.

India was the first country to mine diamonds, with some mines dating back to 296 BC. India
traded the diamonds, realising their valuable qualities. This trade almost vanished 1,000 years
after Christianity grew as a religion, as Christians rejected the diamonds which were used in
Indian religious amulets. Along with Arabians from the Middle East restricting the trade, India’s
diamond jewellery trade lulled.

Today, many of the jewellery designs and traditions are still used and jewellery is commonplace
in Indian ceremonies and weddings.
Introduction to Indian Jewellery Industry

India is a leading player in the global gems and jewellery market. The gems and jewellery
industry occupies an important position in the Indian economy. It is a leading foreign exchange
earner, as well as one of the fastest growing industries in the country.

The two major segments of the sector in India are gold jewellery and diamonds. Gold jewellery
forms around 80 per cent of the Indian jewellery market, with the balance comprising fabricated
studded jewellery that includes diamond studded as well as gemstone studded jewellery.

The Indian gems and jewellery industry is competitive in the world market due to its low cost of
production and the availability of skilled labor. In addition, the industry has set up a worldwide
distribution network, of more than 3,000 offices for the promotion and marketing of Indian
diamonds.

Yesterday Today
Unbranded Branded
Silver & Gold jewellery Gold & Diamond jewellery
Investment Investment + Fashion
Traditional design Fashionable & innovative design
Marriage & festival is peak season Wear ability and gifts
 Michael Porter’s Five Force Model for Jewellery Industry

POTENTIAL
NEW ENTRY

INDUSTRY COMPETITORS

SUPPLIER BUYERS

RIVARY AMONG EXISTING

FIRMS
SUBSTITUTES

Inter-Firm Rivalry -HIGH

• Two types of rivalry. (1) Inside India & (2) Outside India.
• Large presence of unorganized sector. 0.2 Million Gold jewelers and over 8,000
Diamond jewelers
• International rivals Such as, China
• Threat from producing nation like S.A. & Russia.

Bargaining Power of Suppliers - Medium

• In jewellery industry the suppliers are S.A., UAE, Australia, US, Congo, Botswana,
Russia, DTC.
• Few Alternatives of cutting & polishing.
• Skilled labor
• Bargaining power of India is enhanced because India is largest consumer of gold
jewellery.
Bargaining Power of Buyers - Low

• Divided in two types 1. Domestic buyers &

2. Foreign buyers

• As investment (Demand increase)

• Bargaining power of Indian exporter is high because Majority of the world's rough
diamond production is cut and polished in India.

Threat of Substitutes: Low

• Substitutes are Real assets, Stock market, & Bank deposits & mutual fund investment and
Other types of jewellery like imitation jewellery, bagasra jewellery, stone jewellery etc.
• Second preferred investment behind bank deposits
• Status and standard of living increase so demand is increasing at high rate.

Barriers to entry: Low to Medium

• Low capital requirement

• Government subsidy
• EXIM policy & government’s rules-regulations are high
• Skilled manpower is essential
• Advanced technology required
SWOT Analysis

Strengths
Availability of cheap and skilled labor
India has a large labor force and this has made the country the biggest diamond-cutting center for
small roughs. Indeed, were it not for Indian workers, many of these small diamonds would be put
to industrial use rather than jewelry. India’s strength lies in the two million highly skilled
workforces in the country in the gem & jewellery sector, out of which one million are
exclusively engaged in export production, who virtually carve exclusive fancy stones. All the
processes, right from sorting to polishing requires analytical skills, which cannot be relied upon
with machines.

Experience
Experience plays a very important role in the success or failure of a business because of the
diversity and unique features of diamonds. It requires a lot of experience to diagnose as to what
you would obtain after polishing a diamond. It is not necessary that two diamonds looking
similar are same. They can be different too. Experience is needed to understand the following
features of rough diamonds, which are to be bought for further processing by any diamond
processing company.

They are: -
Toughness: as to how are diamonds and as to how much effort will be required to polish them.
Shade: rough diamonds look just like stones and only experience could tell as to what would be
the shade of the diamond.
Purity: it is also important to examine the purity of the diamond.

Pricing and inventory management

The diamond industry virtually offers the entire range of products, a steady supply of raw
materials and a state of the art manufacturing facilities is something that no other center will be
able to match. India’s USP in the days to come is to achieve all round quality at low price.
Supportive government policy
Since the diamond industry is one of the key contributors to the foreign exchange of our country
the government has played a very supportive role to this sector. Incentives like Diamond Dollar
Account (DDA) and SEZ packages and lowering of import duties are some examples. The
government is always trying to provide a helping hand for the promotion of the diamond
industry.

Low cost of production

The cost of production of diamonds in India is much less as compared to other countries. This is
due to the availability of skilled and cheap labour force in the country. The cost of production of
each piece of diamond increases with an increase in the size of the diamond. The government is
also playing and important role by providing incentives which lowers the overall cost of
production of diamonds.

Weaknesses
Less emphasis on quality
The share of India in medium and large sized diamonds is comparatively less as when compared
with other countries is because of less emphasis on quality. It will have a huge impact on large
sized diamonds. Therefore, to remain competitive in the world market Indian businessmen will
have to improve the quality of their diamonds.

Low productivity
The labor force in India is less productive as when compared with China, Thailand, Sri Lanka.
This may be due to reasons like long hours of work, uneasy work environment and no friendly
atmosphere created. The workers therefore are not motivated to work therefore resulting in low
productivity. There will have to be an increase in productivity for the diamond sector to flourish.
No contracts
There is no legal proof of any domestic trade related to diamond transactions in India.
Everything in India works on word-of-mouth. There is no legally binding contract between the
people who do business. Though payment of a high amount is to be made by cheque many
transactions are done with cash.

Lack of standardization
Though India is the largest exporter of diamonds in the world , the diamonds are not
standardized. A same size, colour, weight diamond may mean different things to businessmen
around the world. The Diamond Trading Company should take steps to ensure that the diamonds
are standardized so that the dealers and clients are not cheated at any point of time.

Insolvency
The rate of insolvency is very high in the diamond industry. Payments are not received from
clients even after years of expiry of the credit period. There is a gap created. The rich
businessmen are becoming richer, and the poor are becoming poorer. The newly entered
businessmen are also finding it difficult to survive in the market. One really needs to work hard
to earn a living and to survive in the market place.

Opportunities
New markets
The leading importer of Indian diamonds is US. This is the only country that has been having a
majority share in the world market. The Indians can also explore countries like Europe and Latin
America. There is also increasing demand in South East Asian countries. Using advertising
campaigns and promotion and marketing can do this.

Colored diamonds
One of the major opportunities for the Indian diamond industry is colored diamonds. The clients
now prefer colored gemstones and diamonds instead of the regular white color. Even other
countries in the world are looking up to India for supply of colored diamonds. They are the latest
trend in the market.
Scope in domestic market
Since diamonds are expensive they seem to be possessed by the richer section of the society. The
lower class prefers gold jewelry. They consider diamond and risky and very expensive and very
hard to handle. Therefore the other classes can be made aware of the benefits of diamonds by
advertising and promotion campaigns.

Outsourcing of diamond jewellery

The retailers worldwide have shown keen interest in sourcing diamond jewelry requirements
from India because of easy availability of diamonds. It has been over a decade and a half since
Indian jewelry manufacturers began marketing their products.

Threats
Entry of China and Thailand in the diamond sector
The Indian industry perceives a growing threat from China as a diamond processing and cutting
centre, unless the government backs the industry. Else, India may lose its status as the world’s
largest diamond processing centre. An increasing number of diamond processors from Israel and
Belgium, and even India, are setting up facilities in China for a variety of reasons.

The reasons range from a cheap and disciplined labour force to high economic growth in the
country resulting in a significant increase in potential consumers in the high-income segment
within China, and also to the quality of Chinese workmanship which is steadily improving.
China has all the strengths of India—cheap economic labour, infrastructure and a welcoming
government. It also offers attractive labour union terms and export-friendly policies.

Conflict diamonds
Another threat to the industry is the recent trade in Conflict Diamonds also called ‘Blood
Diamonds’ which have become the thriving industry’s Achilles’ heel. Conflict diamonds are
those mined and the income from their sale help finance arms buying and funding activities of
terrorist groups. The three named areas have been Angola, Sierra Leoneand Congo. A great fear
in the industry is that due to a mere 4 per cent of illegitimate trade, the rest might feel immense
ramifications.
Use of child labor
Small boys, sometimes as young as 10 years old, work in hot sheds chiseling roughs which
eventually get sold in the fancy shops. Their nimble fingers and sharp eyes enable them to cut
these diamonds in remarkable shapes, but while they earn well for these skills many of them find
their eyesight getting progressively weaker as they grow older.

Anti social activities and threat of terrorism

Antis social activities are on the rise especially in places like Mumbai. Security has become one
of the major concerns for the diamond industry. A loss of a packet of diamonds can cause of a lot
of money from your pockets. In recent times there are a lot of robberies happening in broad day
light without even anyone noticing it. Therefore there should be an increase in security facilities.

Current Scenario: The Diamond Industry

Today, India is the leader in importing, processing and exporting of diamonds. India has a
virtually complete dominance in small sized diamonds. India now accounts for nearly 55 percent
of world net exports of cut & polished diamonds in value terms, 90 per cent in terms of pieces
and 80 per cent by caratage. No other export segment of the country has such a significant share
in the world market. India accounts for over 70% of the world exports of cut and polished
diamonds in caratage. In other words, roughly 7 out of every 10 diamonds set in jewellery
worldwide are from India.

In the current scenario, apprehensions have been expressed in some quarters that a number of the
small producers would find it difficult to sustain operations on current margins, which would
lead to some turmoil. Industry analysts believe that as the industry matures and takes its next step
forward, many of the smaller independent producers may find themselves being absorbed by the
larger players. The number of firms may reduce in the process, but not the size of the industry,
nor even the levels of activity.

Much has been said about the rising bank debt of the Indian industry and there were a couple of
disturbing cases of bankruptcy. Yet overall the industry has ridden out the threat and as analysts
point out, with manufacturing on the rise and the number of banks providing finance to the trade
on the upswing, it is only natural that debt figures will show an increase as well. What is
significant however and a sign of the maturity of the players is the process of self-regulation
adopted by the industry, in the form of a pact on trading norms. Signed by all major trade bodies
in the country, these will be implemented through a consensus in the trade and interaction with
the banks to encourage them to accept these as well has also got underway.

Future Outlook: The Diamond Industry

Way back in the mid 1990s, when the Indian diamond industry first claimed its rightful status as
the world’s largest manufacturer of polished stones, there were more than a fair share of skeptics,
who refused to accept what the numbers were saying. Not any more. In fact industry analysts are
now voicing their opinion that many of the Israeli sight holders have actually been
manufacturing their goods outside the country over the past two years and that Israel was being
used only as a transit point in the supply chain.

The entire diamond world knows that India has a virtually complete dominance in smalls, and
that the country has for long been the world’s leading manufacturer of cut and polished
diamonds. But behind the scenes, the India centre has been moving confidently to take over a
sizeable chunk of the manufacturing of medium and larger stones from other competing centers,
particularly Israel.

Some manufacturers took a step forward in the mid-‘90s and entered jewellery manufacturing.
India has a definite cost advantage and our strength is diamonds today. Profit margins are also
higher in the competitive retail business. Selling cut and polished diamonds yields margins of
just 5 per cent to 10 per cent but selling finished diamond jewelry pieces to wholesaler’s
overseas yields margins of between 20 per cent to 40 per cent. And retailing overseas offers
margins of between 40 per cent and 60 per cent depending on the value of the diamonds.

But there are challenges ahead. One is the lack of skilled manpower and technology to create and
produce designs for the international markets. The council is hoping to tackle this by setting up a
training institute. Indian firms will have to tightly control costs and prices.
Chapter 2- Company Profile

Tanishq
Executive Summary

An Indian Brand, which can make big in the global market, is Tanishq from Tata Group of
Industries. 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 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.

Though they faced with many difficulty in the early stages they for about six years they then
came with up with good strategies 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.

To push penetration in other markets, Tanishq will use the ‘shop-in-shop’ concept that it already
does in 50 stores across different West Asian markets. “This reduces distribution costs. Also, for
the consumer it remains a Tanishq store and helps 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 the gold, to win the trust of the
customer.
Evolution of Tanishq

Titan came into existence in July 1984, when the Tata Group joined hands with the Tamil Nadu
Industrial Development Corporation (TIDCO) to make a foray into the watch industry.

Titan started manufacturing jewellery watches and jewellery in 1994. It set up its fully integrated
Rs. 400 million-jewellery plant in Hosur. The plant had the capacity to manufacture four tonnes
of gold in a year. Titan launched these products under the brand name of Tanishq, in 1995. The
name Tanishq, a blend of two words, 'tan' (body) and 'ishq' (love), was coined by Xerxes Desai,
the Vice-Chairman and Managing Director of Titan.

To change its image from a watch manufacturer to a fashion accessories manufacturer, Titan was
renamed Titan Industries Ltd. in 1995. Titan scaled the capacity of its Hosur plant to 4.18 million
units in 1996 to meet the domestic and international demand. From the late 1990s, Titan's
commitment to the jewellery business increased.

When Titan launched Tanishq in 1995, the jewellery industry in India valued at Rs 40,000 crore
was mostly unorganized, with around 3.5 lakh players. Before 1992, only the 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.
Revenue in million

Revenue in million Rupees

2001 2002 2003 2004 2005 2006 2007 2008 2009

Competitors

Carbon
In early 1991, the Bangalore based Peakok Jewellery Pvt. Ltd., (Peakok) was incorporated and
Mahesh Rao (Rao) was appointed director. Peakok realized that the Indian consumer's
relationship with gold jewellery would grow beyond an investment need towards a lifestyle and
personality statement.

In 1996, within the Peakok fold a new brand of 18-carat gold-based jewellery called Carbon was
launched. In 2000-‘01 Carbon's focus had always been to move jewellery from the vault to the
dressing table and bring the selling of jewellery out of heavily guarded jewellery stores. This was
achieved by persuading a few lifestyle stores to add branded jewellery to their vast array of
products. Besides selling from lifestyle stores, Carbon also sold its products as gift items over the
internet. Like Tanishq, Carbon laid emphasis on design.

Most of its designs were contributed by students at the National Institute of Fashion Technology
(NIFT) through the diploma programme which the company sponsored. In addition, Peakok's
team of six designers, (headed by Rajeswari Iyer, an alumnus of a German design school who
had worked in the U.K., Germany and India) 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 of traditional jewellery.
It is made available at `shop-in-shop' outlets in large lifestyle stores (such as Shoppers Stop,
Ebony, Globus, The Bombay Store, Lifestyle and Taj Khazana) and some premium boutiques
(such as the Helvetica in Chennai).

Carbon products were priced between Rs. 2,750 and Rs. 20,000 per piece. While the cost of
traditional jewellery was negotiable, the cost of Carbon items was fixed and nationally
uniform.The brand is available at 50 outlets in 23 cities.
Gili
Gili launched a collection of traditional Indian ornaments made of 18-carat gold. In 1999, the
Gili Gold range was introduced. This range included rings, pendants, earrings, necklaces and
bangles made of 24-carat gold. All Gili products came with a guarantee of diamond and gold
quality.

Gili distributed its jewellery priced between Rs. 500 and Rs. 40,000 through lifestyle and
department stores across the country to increase accessibility among its target segment, the 15 to
30 age group. Gili distributed its jewellery priced between Rs. 500 and Rs. 40,000 through
lifestyle and department stores across the country to increase accessibility among its target
segment, the 15 to 30 age group.

The collection was promoted at college campuses with banners, pamphlets and a few
advertisements targeted at teens. Gili soon realized that just pushing its product was not enough;
it also had to customize its products for special occasions. Following this, it launched a Diamond
Heart Collection specially designed for Valentine's Day. This collection consisting of tiny, heart-
shaped diamond jewellery was well received by teens. Special packaging, catchy advertising and
extensive press coverage contributed to the success of the collection. Gili also made special
promotional offers during festive seasons like Christmas and Diwali. Having captured the low
price point market of Rs.2000 to Rs.10, 000, the company is focused on penetrating the premium
market of customized jewellery. For this Gitanjali jewels opened a jewellery salon, Gianti, to
provide customized jewellery to clients in India.
4 P’s of Marketing

Product

Product Variety
Tanishq today is India's most aspirational fine jewellery brand with an exquisite range of 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 designs and manufactures jewellery that is breath- taking, contemporary and yet has a
tint of tradition. It produces 22 karat pure gold earrings that come in various shapes, sizes and
designs. Some earrings are embedded with precious stones or colour gemstones. These jewellery
sets are overwhelming and could prove to be apt for occasions such as marriage, festivities etc.
Furthermore, they also 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 a certificate of authenticity that states the karatage,
color and clarity of the diamond.

Quality
Consistency in delivering on their promise - Tanishq promises superior quality jewellery with
purity in gold. It is the first and only jeweller that guarantees the purity of its gold jewellery and
certifies the quality of the precious/semi-precious stones in writing.

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. They eliminated this and have 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. Thus it
has established itself as a highly ethical player in a market that was rated as having the highest
incidence of under karatage (Bureau of Indian Standards).It 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 to maintain even when they global. They have the right range of products for
the different markets across the globe. Only they have to remember their differentiating factor.
The differentiating factor for Tanishq will be the experience and quality they will be giving the
consumers when they come to the store.

Design
Widely acknowledged as a design leader, Tanishq is known for its ability to develop 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 the largest design teams in the
country. 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 was recently adjudged the Most Admired Jewellery brand (for the third consecutive
time) in India at the Images Fashion awards 2004. It has also been judged as the Images Retailer
of Year in the fashion category. Positioned as ‘9-to-5 jewellery’, the collection is stylish and
modern and is designed to suit all forms of attire, western and Indian, casual and formal.

Brand Name

"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".
Services
One of the company’s most important initiatives was customer service enhancement. Tanishq
launched a direct consumer contact program 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
jeweler. 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.

They welcome you to exchange your old gold jewellery for new designs. To ensure you get the
right valuation for your old jewellery, use scientific, reliable and transparent processes including
testing it with the Karat meter.

Promotion

The Tata Group has promoted Tanishq as a jewellery store brand, which competes with close to
three lakh traditional jewellers who dominate the domestic market. It has launched new
collections at a quicker rate than its competitors, and conducted marketing promotions and
fashion shows to enhance the shopping experience of consumers. Given the diverse nature of
Indian ethnicity, Titan made the designs more ethnic to satisfy the tastes of all regions. Titan
transposed 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.

‘Concept’ stores, the first of which, costing Rs 10 crore, opened in Kolkata . The idea of such a
store was to harmonize the tradition of the past with the modernity of the present.

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. By 2001, the scheme accounted for almost 5% of the
turnover and over 30 corporate clients like Coca-Cola, the UB Group, Whirlpool, TVS Group,
Ceat and Liberty shoes. In early 2000, it made miniature gold cars for Hyundai Motors to be
given to select dealers.

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. Tanishq provides Gift vouchers in various
denominations for gifting your friends and family.

Tanishq, to set off competition, launched Jodhaa Akbar collection and managed to get lot of
marketing hype. The collection is very pricey and suggested retail price is between Rs 25,000 to
Rs 15 Lakhs.

In 1999-2000 the communication and promotion budget was increased from Rs. 65 million 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.

Place
Tanishq jewellery 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 135,000 sq. ft.
factory is equipped with the latest and most modern machinery and equipment.

Tanishq reached the century mark as it unveiled its 100th store in Patna at Hathwa Market.
Having embarked on the retail journey a decade ago, Tanishq today is the largest jewellery
retailer in India. With a strong presence in 70 cities across India, unmatched collections and
assured purity, Tanishq has quickly become the first choice 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 stores operate on the franchise model.

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”.

Design and retail innovation have been the hallmark of Tanishq all these years. Tanishq has
constantly formulated an innovative product strategy in this journey in line with the evolving
consumer tastes.

Modern retail values and principles in the selling of branded jewellery in India are almost
completely the handiwork of Tanishq. The brand has broken fresh ground in retailing by creating
exclusive outlets with hitherto unknown in-store ambience and hospitality touchstones.

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.
Besides catering to Indian consumers, Tanishq has successfully entered key export markets such
as the US, the UK, the Middle East, Singapore and Australia. This is testimony to the brand's
ability to craft products that meet the requirements of varied cultures and sensibilities.

Pricing
Tanishq range of products start at an accessible low of Rs. 600 and the range - Solo, Aria, Diva,
Hoopla, Lightweights, Bandhan and the most recent, Colours - comprises wearable everyday
jewellery which has been designed for the urban working woman.

The Tanishq Valentine’s Day collection includes pendants, earrings and finger rings starting
from Rs. 2,000 onwards. Daytime’s collection of all day diamonds, which starts at an affordable
Rs. 1,960. The collection combines traditional motifs in sleek contemporary lines with slight
touches of black rhodium. The 'up to 25 per cent' off offer by Tanishq is a unique opportunity.
This attractive offer has been introduced to benefit the customers and provide them with the best
price and product options. Affordably priced from Rs 2,500/- onwards the Tanishq range of
diamond jewellery is the ideal accessory for the customers.This collection is crafted using a
special process called electro-forming. The jewellery is targeted at customers who are looking
for international designs, wearability and value for money. The new collection starts from a
price range of Rs6,000 onwards and 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 India's first and largest jewellery retail chain.

Brand Position
Tanishq has been projected as an impeachable mark of trust by raising the awareness of the
people about unethical practices in the jewellery business and then measuring the gold purity by
caratmeter.

Tanishq also has been positioned as a branded jewellery of luxury rather than commodity. It
moves jewellery beyond investment to the fashion and adornment sector.
Segmentation

Niche Marketing
After its inception in 1995 focus on exports, Tanishq's designs had been conceptualized
for the Western markets and were introduced in India without any alterations. Tanishq
positioned itself as an international brand for the Indian elite. The brand was targeted at a
niche market (However they later on started targeting the mass marketing since
1997).

Psychographic Segmentation
Life Style: Tanishq has found that 40% of the Indian women are working and they
targeted this segment wth a specific group of products called collection-G, a 9-to-5
jewellery for the working women.

Geographical Segmentation
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.
Orra

Executive Summary

The Rosy Blue Group was founded in 1960 by Arunkumar Mehta and Bhanuchandra
Bhansali . The company started as a small Mumbai workshop, but soon became a network of
specialist businesses, each able to successfully fulfill client needs. This eventually formed the
platform for a global company which provides employment to over 10,000 people

ORRA – The Diamond Destination is India’s largest and only exclusive diamond jewellery retail
chain. A legacy that has spanned centuries, overwhelming the world with its brilliance can be
summed up in one word, ORRA. Launched in 2004, ORRA has been at the forefront of design
leadership and product innovation. ORRA is renowned for its exquisitely crafted Belgian
Solitaires. Rocks are crafted into beautiful diamonds by descendants of the legendary 14th
century Belgian inventors of diamond sculpting. ORRA is a part of the world’s largest diamond
manufacturing company with a presence across 15 countries headquartered in Antwerp,
Belgium. Set in an international format. ORRA has spread its glow across the length and breadth
of India with 31 exclusive high street boutiques in 21 cities. These boutiques have become the
ultimate destination for the choicest diamonds in the country. In 2007, it earned the prestigious
distinction of being voted as the “BEST JEWELLERY RETAIL CHAIN OF THE YEAR” and
in 2008 its design was chosen as “THE MOST INNOVATIVE DESIGN OF THE YEAR” From
adorning the likes of Julianne Moore at Oscars 2008 and Nicole Kidman and Joan Rivers in the
past to providing exquisite jewellery for Mallika Sherawat at Cannes film festival, ORRA has
been associated with the crème la de crème of society. It also created a stunning Million Dollar
Bustier in honour of Prince and Princess of Belgium.
ORRA has always been the exclusive choice for creating the most stunning pieces of jewellery
and works of art. Define a diamond's size, shape or colour and ORRA will make your dream
come true
Product Profile

Name a size, define a shape, state the color and ORRA will have a diamond to make your dream
come true. The company has come a long way from sculpting diamonds to crafting the finest
diamond jewelry. A legacy that has spanned centuries, overwhelming the world with its
brilliance can be summed up as ORRA. A word that epitomizes the person it was created for -
her spirit, her grace and the invisible glow that surrounds her. At ORRA, diamonds are sculpted
to be as special as the person who buys it.

Set in the international store format, ORRA has 33 exclusive diamond boutiques across India.
The ORRA color logo draws strengths from our foundation.

With the launch of ORRA, the focus on building inheritance revolved around our international
lineage and centuries of presence. These were made relevant to the consumer by stressing on
their ramification in terms of product focus. We have attempted to differentiate our product
offerings and create new product concepts. Whilst the overall positioning is of a serious diamond
player, the aim is to entice consumers through product offerings tailor-made to their
requirements.

Examples of these innovative and differentiated products

• Bridal Collection
• Solitaire Collection
• Platinum Couples Collection
• Mughal Collection
• Spiritual Collection
• Career Carats
BANKING ON THE RICH DIAMOND HERITAGE ORRA OFFERS THE FINEST
DIAMONDS set in artistically inspired designs. Be it a perfectly sculpted solitaire or a
classic handcrafted neckpiece, at ORRA, there is a diamond for every occasion. Define a
diamond's size, shape or colour and ORRA will make your dream come true! ORRA
diamonds are etched out by artisans who have inherited the 700-year-old legacy of the
Belgian Master Craftsmen, the inventors of diamond sculpting. Discover the luminous
drops of mystique all the way from Belgium.

Apart from the finest quality of diamonds, ORRA also brings to the forefront, a design skill that
has consistently wowed the world. With its design centers spread across the globe in New
York, Antwerp, Hong Kong, Tokyo and Mumbai, ORRA's designers have won several
prestigious awards like the De Beers International Award. ORRA has presented its
collections alongside celebrated international designers like Pierre Gauthier and Ann
Demeulemeester from Belgium and Gavin Rajah from South Africa

USP

• Financial strength and stability

• ‘Stable’ rough supplies
• Understanding of market dynamics
• Pipeline integrity guarantee
• Strategic downstream partnerships
• Huge quality and size range from in-house production
• Global track record in branded and “special cut” programs
Future Strategies

Rosy Blue to set up 40 Orra diamond jewellery showrooms

THE Rosy Blue Group, is planning to invest Rs 90 crore in setting up 40 exclusive Orra diamond
jewellery showrooms in India over the next three years.

Apart from its presence in India being marked by two separate ventures, the group also runs one
of its five global design centres from the country, the Chief Executive Officer of Orra,

"Rosy Blue is into diamond polishing, exports and retail in India. While the polishing business is
a separate company, the remaining two businesses fall under Intergold,"

STP Analysis for Orra Diamonds

• Segmentation
– Wedding Segment
– Non Bridal Segment
– Elite Segment
– Corporate Accessory
• Targeting
– Teenage and youth
– Employees of big firms
– Addressing Newly Wed
– Single & post Marital Acquisition
• Positioning
– Modern
– Special
– Young
– Ultimate Gift of Love
– And Lots of else
Pricing

• The Orra range has been priced at Rs 5,000 at the entry level and up to Rs 10 lakhs for
the high-end jewellery.
• Orra had a scheme to sell gold at a fixed price.
• Segmentation: due to its premiere pricing it generally aims the elite group.
• Targeting: traditionally like all jewellery brands orra also targeted the female population
but above de age group of 20.

Promotion

• Used commercial ads to recapture the brand's heritage since Orra has been around for 116
years and it was essential to portray its rich tradition.
• Retail strategy- Positioned as an ‘Only Diamonds Store,’ it aims at bringing to the
consumers the finest diamond jewellery in a world-class retail setting.
• Rosy blue was associated with IIFA 2006.
• ORRA has had a long and successful association with the Hollywood and Bollywood.

Place

• Orra operates in various parts of the world including Asia, USA, Middle East and
Europe.
• They cater to their customers through retail outlets and online transactions.
• They also have various tie-ups with other jewellery outlets to market their brand
Comeptitor Analysis

Branded Segment Competes with approx. 300,000 traditional jewelers in the domestic market
such as TBZ, CKC – Banglore, Prince Jewellery, Joy Alukkas, GRT-Chennai, Notandas, Anmol,
Mahesh Notandass, Minawala, Nirvana, PN Gandgil Haoorilal, Punjab Jewellery, etc…

SOURCE OF ROSY JOY RELIANCE

GITANJALI TANISHQ
DIFFERENCE BLUE ALUKKAS JEWELS

SALES
TURNOVER 7200 4832 3520 3350 800

(in Crores)

Upper Upper
TARGET Middle & Middle & Middle &
Middle & middle &
CUSTOMER above above above
above above

Theme
MARKETING Customer Press
Events Advertising based
STRATEGY Schemes releases
advertising
Competition Profile - Indian Market for Diamond Jewellery

PREMIUM

POPULAR

MASS
 Chapter 3- Research Methodology

Research methodology is a strategy that guides a research in providing answers to research

questions and for this, research survey is being done. “Accuracy of the study depends on the
systematic application of the method”. The researcher has to decide the method to be used that
helps him to get a desired direction in a systematic way.

The research approach for this study was conclusive research. Conclusive research is designed to
help executives to choose among various possible alternatives to make a viable business
decision. Further this research was of descriptive type, which is an offshoot of conclusive
research. The problem for this research was non-operating in nature .The data used was mainly
secondary in nature collected from various articles, journals, and mainly internet

Objective

The purpose of research is to discover answers to questions through the application of scientific
procedures. The main aim of research is to find out the truth which is hidden and which has not been
discovered as yet. Though each research study has its own specific purpose, we may think of research
objective as falling into a number of following broad groupings:

 To gain familiarity with a phenomenon or to achieve new insight into it.

 To test a hypothesis of a causal relationship between variables.

 To collect as much information about the jewellery industry as possible

 To do a comparative analysis of major players in the industry

Scope

Area: The area aspect was not taken into consideration so much because the research was basicaly based
on secondary data.

Market: The research has been done only on 2 companies i.e. Tanishq & Orra

Data collection: Source of data for this project was secondary and was collected through secondary
sources (published material i.e. newspapers, journals and magazines, as well as from electronic media
i.e. internet websites)
Limitations

• Since most of the companies undertaken for research were non listed the financials of the
companies are not available.

• In the given timeframe only secondary data collection was possible.

• Eros being a North Indian company lacked outlets here in Bangalore.

• The objectives from visiting the stores could not be fulfilled as the people were not
willing to give much information.

\
Chapter 4- Comparative Analysis

Strengths Opportunities
• Purity (karat meter) • Global markets
• Distribution network and retailing • Low cost jewellery
store • Customized jewellery designs
• Award winning designs • Concentrate on Gen-X by having
• Diversity in jewellery trendy jewellery
gold/diamond/platinum • Expand retail stores
• Competitive prices

Weaknesses Threats
• Escalated gold costs mean lower • Competition
margins • Lack of Skilled workers
• Gold not seen as a source of
investment

Tanishq
ORRA
Chapter 5- Conclusion

Today India is the largest manufacturers of diamonds in the world. We make use of the latest
automated machines, technology and tools. Indians have realized the importance of technology
in the diamond trade and have upgraded their facilities to a great extent.
Strengths Weaknesses

• Financial strength and stability • Doesn’t cater to the middle and lower

• ‘Stable’ rough supplies strata of the Indian society

• Understanding of market dynamics • Not very well known among common

• Pipeline integrity guarantee people

• High profile, extremely expensive, only
• Strategic downstream partnerships
for the rich, is the image perceived by the
• Huge quality and size range from in-
common people.
house production
Global track record in branded and “special
cut” programs
Global presence

Opportunities Threats

• Better advertising and marketing • Increasing competition from retail

strategies jewellery houses
• Change image as perceived by common
• Local customers prefer local jewellery
people
houses rather than high end boutique
• Easy and convenient store locations
stores- ORRA
• Cater to all levels of customers
There cannot be a control on the amount of rough coming into our country. The polishing and
marketing of diamonds has gained more importance. New markets and centers have started
emerging and stones similar to small traditional Indian goods types are being polished in China
and even in Thailand and Sri Lanka.

India has 55 percent by value, 80 percent by volume and 90 percent by way of pieces. Though
this being the current situation. It will not be difficult for the industry to grow by five to ten
percent in terms of value because of our sizes of firms and our labor force. But a share of larger
than seventy five percent will be difficult because of competition from other new markets, the
mining companies themselves setting up manufacturing and polishing facilities and the rest of
the market consists of high quality and colored diamonds.

Though the Indian diamond market has a large share when compared to other markets, they will
have to work hard for maintaining this position and will have to make continuous changes and
innovations. The government will have to take steps in stopping illegal activities and threat of
terrorism. The diamond industry should also look more into fancy and colored diamonds, which
is the latest trend. They should also look into the new shaped diamonds that have been
discovered.
Bibliography

Books
Marketing Management by Philip Kotler, Keller, Koshy and Jha,
Pearson Prentice Hall, 13th edition

Web

• Case Studies and Management Resources - www.icmrindia.org/

• Tanishq official website - www.tanishq.com
• Management students forum - http://www.managementparadise.com/
• The Hindu Business Line - www.thehindubusinessline.com/
• Business Standard - www.business-standard.com/
• E-bay Shopping website - http://www.ebay.in/
• Moneycontrol.com - http://www.moneycontrol.com/
• Economic Times - 27 Jun, 2008, Sreeradha D Basu -
http://economictimes.indiatimes.com/News/News_By_Industry/Cons_Products/Fashion__Cosm
eticsJewellery/Gitanjali_Tanishq_Adora_expect_50_sales_growth/articleshow/3169571.cms
• Economic Times - 14 Dec, 2007, Vidyalaxmi & Preeti Kulkarni -
http://economictimes.indiatimes.com/Personal_Finance/Savings_Centre/Savings_News/How_to
_do_your_bridal_shopping/rssarticleshow/msid-2621101,curpg-2.cms
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• www.erosjewellery.com/
• www.fibre2fashion.com/news/company-news/eros-jewelry/
• www.scribd.com/doc/8910495/Indian-Jewellery-Industry
• www.slideshare.net
• www.kiah.com
• www.sheetalgroup.com
• www.icra.com
• www.rosyblue.com
• www.orra.co.in
• www.google.com
• www.scribd.com