Case Study on Tanishq Essay Example

fashion accessory was extremely difficult to bring about.

Consumer perception of going to family jewelers: People generally bought gold from the same family jeweler they had trusted implicitly for generations. Moreover, these jewelers made the jewelery 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 jewelery only from family jewelers.

Only 18 carat gold: Tanishq offered gold in 18 carat while the Indian consumer was used to 22-24 carat gold. Hence they found it difficult to sell 18 carat jewelery.

Multi brand stores: When Tanishq was launched, it sold most of its products through multibrand stores. This did not help the Tanishq brand to make its mark.

SOLUTIONS

Tanishq should shift its emphasis from modern designs to more ethic traditional ornaments. It should focus on seasonal plus localized promotions based on Indian festivals.

• Taniqsh gave full freedom to the retail outlets to pick up designs, which they thought would sell in retail stores.
• Taniqsh used karat meters with x-ray to give an accurate reading of gold thus introducing the concept of gold purity for the first time in India.
• They have also started 22 -24 karat jewelry in order to increase the net value of jewelery.
• They introduced 3500 new designs based on current trend of market.
• They also started focusing on feedback from stores.
• Taniqsh set up its own retail showrooms in 1998. They started 47 Taniqsh boutiques in 31 cities
  

(12 metros) in 2001.

By 2001, this scheme accounted for almost 5% of the turnover over 30 corporate clients like whirlpool, Ceat, liberty shoes.

S. W. O. T. ANALYSIS

STRENGTHS

Parent Brand Name:

1. Tanishq being the ‘baby’ of Titan, which in turn is a reputed brand of Tata which has a good reputation among the Indian consumers, turns out to be a great strength for the product.
2. And provide the product well build goodwill.

Financial Stability: Tanishq being a brand of Titan has a good financial support from its parent brand. Also it can pull foreign capital as it has a chain of 1200 retail outlets.

Experienced management: being a brand of Tata which has been operating in India from almost 100 years having a long product line with many brands it is gifted with the an Experienced management.

High Technological Support: Tanishq also has a high technological support like karat meter which uses techniques like X-ray thus enhancing trust towards the purity of gold among the customers.

Flexibility and Adaptability according to Market needs and demands: Initially Designs offered by Tanishq were very westernized ,18 karat gold.

But looking at the prevailing market demands in India it was able to adopt new market strategies thus it was able to provide 3500 designs.

WEAKNESS

Ahead of its time: at the time of its

launch more importance was given to authentic and traditional jewellery by Indians. Tanishq provides a different range of jewellery as compared to other Indian brands.

OPPORTUNITIES

Changing attitudes of the people towards designing jewelry: In country like India with the increase in standard of living there is a change in attitude of Indian population towards the fashion and fashionable articles. Gold jewelery is perceived as an accessory and not only as an asset.

Also with the developing westernize culture in India many of Tanishq’s western design have started getting acceptance from Indian consumers. Positive perception for gold among Indian consumers: In Indian market gold possesses heavy asset value and high resale value. Hence gold always has high demand in Indian market. Also in the occasions like wedding and birthday gold makes unavoidable presence.

THREATS

Jewelery market in India is highly unorganized and localized:

Indian consumers normally prefers to go to their local goldsmith and shows batter trustworthiness’ for them as they are serving them from long time with tailor-made jewelry for their customers.

Branded jewelery concept very new to Indian market: As gold jewelry is an expensive article and people shows more traditional approach towards it, the concept of brand approach is very new and raw for Indian market which can be a threat for Tanishq.

CONCLUSION

Today as the Indian mind set is changing and the consumer is accepting gold not only as an asset but also as fashionable accessories. Thus there is a considerable scope for Tanishq to bloom in the Indian jewelllery market.