Tanishq: Positioning to Capture the

Indian Womans Heart

Indias Gold Jewelry Industry

Indian gold jewelry market $12 Billion Indian wedding jewelry - 70% of jewelry market Wedding trousseau consisting of at least 5 pieces ~ $7500 (2008 Gold Price) where per capita income was ~ $1,089

Indias Annual Gold Consumption

The Rising Price of Gold

The start
Pvt. Label supplier in Europe Capture wedding gift market jewelry that tells time Entry into domestic market: 18 carat studded jewelry High awareness, low conversion

Tanishq SWOT Analysis

Capital Internal Flexibility

Not for me
Gold Purchase Rituals Gold Perceptive

Innovative
Modern Style Excellent & outstanding advertisement strategy TATA Support The Wedding Market

GoldPlus Local Jewellers

External

Globalization

Government Regulations

Gold Plus SWOT Analysis

Marketing Strategy Internal TATA Support

Limited Outlets

Traditions & Values

More Outlets The Rural Market External

Tanishq Government Regulations Design Stealers

Problem Analysis
Heavy Competition Failure of Gold watches Failure to tap wedding Market Not for Me perception Internal conflicts between Tanishq and GoldPlus

Challenges
Yr. 2000 marked fifth consecutive business loss Low making charge of local mfg. by compromising quality Poor inventory management
Poor delivery alignment in order & indent Changing customer preferences Non moving stock (sludge) Physical verification of inventory

Excise duty on branded jewelry eating into margins Pricing challenges

Strategies for market growth

Jewelry division as separate SBU with COO, marketing, etc Rationalize frequency of launching new design Capabilities created to cater need for marketing made to order segment Commodity marketed as a premium product Launch of few new product every month creating new stories Local designer for regional market

Successful Strategies
Complete positioning Managing competition Introduction of studded Jewelry (margin enhancement) Very high promotion sponsoring Miss India pageant, Paheli collection, etc Pioneering the Karatmeter Elimination of traditional middlemen

Traditional system Vs. Tanishq system

Jewelers

Tanishq

Vendor or Middlemen

Head Karigars

Head Karigars

Unorganized Karigars

Unorganized Karigars

Gold Consumer Market Segmentation

Successful Strategies
Revamping internal supply chain
Reduced inventory Range of design Responsive business close proximity of Karigar parks and manufacturing plant Web based GOLD MINE was implemented to connect boutique, CFAs & factory

Total sales of Tanishq from 1998-2007:

Going forward Questions to ask

Is cannibalization really an issue? Can GoldPlus compete with the local wedding jeweler? How will Gold Plus fuel growth given base gold price escalations? Future competition?

Going forward
Tanishq & GoldPlus, compliment each other
High end value game vs. low margin volume play

Understand their market territories & characteristics Capitalize their strengths Cross Branding the market to own a larger share Explore other global markets

Thank you