Tanishq: Positioning to capture Indian Women’s Heart Essay Sample

increasing global opportunities for exporting diamond-studded jewelry.

Even though India is the world's largest consumer of gold, its exports of gold jewelry, whether adorned with diamonds or not, have vast potential. The World Gold Council reports that India's gold jewelry exports make up only 13% of its total treasure and jewelry exports and less than 2% of the global market value worth $80 billion.

Due to its isolation from global markets, India's jewelry design industry has faced obstacles in growth. This has resulted in India falling behind Hong Kong, Italy, and Germany in terms of jewelry design, creating a hindrance for exporting.

WGC has launched global contests for jewelry design to enhance the expertise of Indian artisans. GJEPC anticipates that India's jewelry exports will grow by 10% annually in the future, as it is presently the only nation capable of increasing export growth in gems and jewelry. As previously noted, India's CPD exports already make up 80-85% of the global market.

The chances for more growth have decreased due to the elimination of customs duty on uncut diamonds and colored gemstones in semi-processed, half-cut, and broken forms. Additionally, the duty on cut and polished diamonds and colored gemstones has been reduced from 15% to 5%.

The industry views the decrease in import taxes on gold from Rs 250 (approx. US $5) to Rs 100 (US $2) per 10 grams as a favorable action. The company overview highlights that Titan Watches Limited was established through a joint effort between Questar Investments Limited (a Tata group company) and the Tamil Nadu Industrial Development Corporation Limited (TIDCO) in 1984.

Initially, Titan focused on the tickers and redstem storksbills industry before expanding into jewelry. In

1995, Titan rebranded from 'Titan Watches Ltd.' to 'Titan Industries Ltd.'

'To transform its identity from a producer of watches to a creator of fashion accessories, the company initiated its jewelry wing under the Tanishq brand in the same year. It holds a prominent position among other branded jewelry competitors in the Indian market.'

Tanishq, which is regarded as a trailblazer, started in 1995 with 18-carat jewelry but soon realized that it was not popular enough in the local market.

The range of jewelry made from 18-carat materials was broadened to accommodate decorations made from 22 and 24-carat materials as well. When Tanishq was introduced, the majority of its products were distributed through stores that carried multiple brands. This occurred in 1998.

Tanishq aimed to establish a distinctive brand identity by creating its own series of retail outlets. In 2002, Tanishq had 53 unique stores in 41 cities where their jewelry was sold exclusively. To accommodate mounting requests, Tanishq strategized to unveil 125 additional shops by the end of 2009 that would offer an array of affordable wearable products starting at Rs. 400.

India's jewelry market is dominated by Tanishq, the most popular and rapidly growing brand. Tanishq is widely regarded as the most coveted destination for premium jewelry in India, offering a diverse range of gold jewelry adorned with diamonds or colored gems, as well as a stunning collection of 22Kt pure gold jewelry. The brand also boasts an exquisite selection of platinum jewelry and designer silverware as part of its product portfolio.

Tanishq guarantees high-quality jewelry made with pure gold. They ensure that the carats and weight are exact as promised, avoiding the common issue of impurity and false

promises people often encounter when buying gold. With their commitment to delivering on their promises, Tanishq has established a brand built on trust and reliability. To further ensure the purity of their products, they offer gold meters for customers to check the quality of the gold.

Tanishq, a jewelry maker, is committed to ensuring the purity of its gold jewelry and certifying the quality of its diamonds and colored treasures during composition. Its ethical approach has earned it recognition as a trustworthy participant in a market that has been criticized for underkaratage (according to the Bureau of Indian Standards). Tanishq is also known for its innovative designs and has a dedicated design studio staffed with a team of award-winning Indian interior designers. As a testament to its success, Tanishq has been named the Most Admired Jewelry Brand in India for three consecutive years at the Images Fashion Awards.

Tanishq has received the Images Retailer of the Year award for its exceptional customer experience and unique positioning in the fashion category. The company's exclusive approach to jewelry retail is a distinguishing feature that can only be found at their retail outlets. They have also established a transparent and consistent national retail chain with continuous maintenance of policies and practices across all stores.

Tanishq has established a strong reputation in India for its superior jewelry that adheres to global standards and is widely accessible throughout the nation. Customers can benefit from warranties and complimentary repairs at any of the numerous Tanishq stores. Additionally, Tanishq's commitment to purity has contributed to overcoming consumer skepticism towards the jewelry sector.

Therefore, Tanishq can apply its success in India to a global scale, presenting a

fresh outlook on jewelry shopping, especially for exquisite oriental jewelry. Generally, oriental jewelry can be found in flea markets or areas such as China Town or Indian Markets around the world. However, by entering the primary markets in the Western world, Tanishq will have a competitive edge. The customer base can be divided into two segments: those who purchase gold for investment and those who purchase gold for customization. The SWOT analysis highlights the management dilemma of choosing between a recognized brand and new market opportunities.

Tanishq, initially aimed towards Western customers in the Indian gold jewelry market, has undergone strategic repositioning and now serves the traditional yet modern Indian woman. In addition to Tanishq, a new brand called GoldPlus has also been introduced.

While GoldPlus is a fresh brand targeted at the gold wedding jewelry market, its counterpart, GoldMinus, still bears baggage from its past.

Making the decision is significant due to a variety of reasons, including strategic, economic, organizational, and brand investment factors. It is recommended to consider that India is a vast country with diverse populations, including various income groups. Although the middle-income group is prevalent in India, they are not yet capable enough to afford branded jewelry.

Despite the availability of traditional jewelry makers, many still choose to travel to Tanishq as their preferred option. The company aims to continue with their GoldPlus concept, which targets those unable to afford Tanishq's offerings but still aspire to purchase from them. This strategy would enable the company to both retain and expand their customer base, ensuring that as the middle-income group in India (as indicated by various studies) grows, they would choose Tanishq exclusively.

It's important for

the company to be cautious when selling the GoldPlus brand. There must be no mixing of the two brands in the same store. GoldPlus stores should be distinct and their atmosphere should appeal to the target audience. Additionally, the service and designs should be comparable to maintain Tanishq's brand equity. Since the brand's communication strategy is effective, clients should not have any confusion regarding GoldPlus and Tanishq.

The first year return on investment for GoldPlus, as indicated in the balance sheet of the Erode franchisee, was 19%, which portrays a positive image of the new business model within the Titan Group. The overall profit earned by each individual business model is significantly greater than if they were merged into one. Due to the distinct target markets for Tanishq and Gold Plus, the possibility of cannibalization is low. Tanishq had an estimated ROE of 90.60% in 2011, while Gold Plus had an ROE of 66%.

In order to achieve this goal, the company must adopt a branded house approach for both of its brands. Properly executed, a branded house strategy provides a strong sense of assurance to customers that by choosing this BRAND, they are gaining an asset that is not just a product but an integral part of their personal identity. Selecting such a brand is not necessarily a matter of showing off or ostentation.

Instead of relying solely on product attributes like in the world of brand modeling, it is more of a means for self-discovery and personal fulfillment.