INTRODUCTION ABOUT TANISHQ

In a market that has traditionally been dominated by

family jewelers, it took the entry of Tanishq, India’s
largest, most desirable and fastest growing jeweler brand
from the house of Titan in 1995, to give Indians access to
a product whose promise was truly as good as gold.

Tanishq’s appeal lies in the wealth of its designs and

purity of gold. It has won the trust and admiration of
customers and created a unique position for itself in the
marketplace.

The association with Bollywood blockbusters likes

Paheli and Jodhaa Akbar and the 2003 Miss India beauty
pageant have enhanced the brand’s appeal, lending it an
aura of elegance and grandeur.
Tanishq stands out as a brand that abides by values of
Trust worthiness, credibility and respect. The power of
Brand was further enhanced with the introduction of
karatmeters — a tool that helped customers gauge the
quality of their gold — in every Tanishq outlet.

By introducing revolutionary, innovative designs in a

market that worships tradition, the brand created its own
tradition of retail success. Yet Tanishq is more than just
a jewellery retailer. It stands for reassurance of quality
and ethics. The fact that it belongs to the Tata family
assures the customer that with Tanishq, all that glitters is
certainly pure gold.
TAN + ISHQ = BODY + LOVE
The essence of this name is derived from the Urdu
language, a Persian Arabic form of dialect.

The reason d'être behind electing this unique name for

this company is the fact that women and men alike
had realized the magnificence of the human anatomy
since time immemorial.

Beautifying the human body was a primary part of the

daily routine, which took several hours of intense care.

Though today things have changed drastically, and time

very precious to one and all, nonetheless beauty remains
a primary concern in the day-to-day activities of every
man and woman.

Consequently the name Tanishq is synonymous to 'love

for your body', where Tan signifies the body and ishq,
love.

LAUNCHING OF TANISHQ
Titan launched Tanishq in 1995, India's largest, most
desirable and fastest growing jewelry brand in India.
Diligent care and quality processes ensure that the
Tanishq finish is unmatched by any other jeweler in the
country.

Tanishq challenged the age-old jeweler’s word with

TATA's guaranteed purity. It exploded the market with
facts about rampant impurity across India. It
introduced technology-backed challenge in a category
completely governed by individual trust. Tanishq
introduced innovations like Karat meter, the only non
destructive means to check the purity of gold.

In its early days, Tanishq was positioned as an

international jewellery brand for the Indian elite. This
meant it catered to a niche market. Moreover, its Italian
designs in 18-carat, mostly studded jewellery did not go
down well with the traditional Indian woman, used as she
was to 22-carat jewellery. Abandoning its westernised
look, Tanishq’s designers chose to work on a fusion of
contemporary and traditional Indian motifs.

PRODUCT
The Tanishq portfolio comprises a wide range of
jewellery, including 18-carat studded products, 22-carat
plain-gold products, silverware and coins. Tanishq is
the first brand in the jewellery category to introduce
collections designed exclusively for the modern Indian
woman, especially working women.

Among the Tanishq collections that have caught the

imagination of consumers is Aria, which draws
inspiration from the traditional seven-stone jewellery that
Indian women have worn for over 100 years. Aria added
a contemporary element to the traditional setting of the
seven-stone cluster by using diamonds of different
shapes and sizes. The use of rhodium plating alongside
the yellow gold gives this product a unique look, modern
as well as traditional.

Other winners from the Tanishq stable include Diva,

which has pearls encircled by diamonds, Hoopla, which
boasts diamond hoops, and Solo, a collection that uses
solitaire diamonds. Collection G, with a selection of over
90 designs, addressed the everyday jewellery needs of
working women. 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.

The introduction of lightweight gold – jewellery that

looked heavy but was light in weight and on the purse –
marked another milestone in Tanishq’s brand history.
RECENT DEVELOPMENTS
Tanishq has veered away from the high-end French look
that it started out with to jewellery that is design-
differentiated and yet wearable. This shift in its design
ethos has helped make the brand’s products more
accessible to Indian women.

The Tanishq of today has little to do with conspicuous

consumption and much to do with meeting the
aspirations and emotional needs of consumers.

Tanishq’s retail boutiques are temples for the brand and

are used as a platform for celebration, be it the launch of
a new collection, a new marketing promotion or a
festival. This gives Tanishq outlets a unique appeal and
consumers an opportunity to heighten their shopping
experience. The launch of new collections such as
Dancing Diamonds, Ethnic Gold, Paisley, Dewdrops and
Avataar has enabled Tanishq to establish itself as a
frontrunner in the fashion jewellery scene.

One of Tanishq’s more innovative ideas is to offer

special schemes during various festivals. Given India’s
diversity, this is never a one-size-fits-all initiative; rather,
it means having different promotions at different times of
the year in different parts of the country. So, whether it is
Varalakshmi Puja in Andhra Pradesh, Durga Puja in
Bengal, Onam in Kerala or Karva Chauth in the North,
the brand celebrates it with its consumers in the right
cultural spirit.

PROMOTION
Tanishq has deliberately moved away from mass-media
advertising and focussed on store promotions to make
the brand more accessible to consumers. This has been
done to correct the consumer perception that the brand is
highly priced and only meant for the rich and the famous.
This approach has also ensured that Tanishq’s
promotional approach is product-led. Promotions are
organised from time to time to ‘activate the market’.
These events reinforce the image of Tanishq as a trusted
leader. The ‘Impure to Pure Exchange’ offer is an
example of one such activation-based promotional
campaign. Under this scheme, jewellery buyers could
exchange their impure jewellery of any ‘caratage’ for
Tanishq’s 22-carat jewellery. During the promotion it
offered to value consumers’ old gold jewellery of 17-
carat and above on Tanishq’s Karatmeters.

Between August 1st and August 15th 2001, Tanishq

embarked on a promotion where discounts of up to 20%
were offered on all its jewellery. This was to say thank
you to a million consumers on the fifth anniversary of the
brand’s launch. Over 100,000 people shopped at Tanishq
boutiques during this period.

Another consumer loyalty programme that has been

initiated by Tanishq is called the Golden Harvest Savings
Scheme, which offers buyers the benefit of getting more
jewellery than what they have paid for. The scheme
allows consumers to plan future purchases in advance
and pay for them in easy instalments. Consumers can
choose from two plans: a 12-month annual plan and an
18-month extended plan (the monthly installment can be
for any amount upwards of Rs. 500). Tanishq contributes
60% of the last monthly instalment in the annual plan
and 130% of the last monthly instalment in the extended
plan, both of which are part of the final price that the
consumer pays for the product.

BRAND VALUES
In sync with the Tata brand values, Tanishq is
synonymous with trust and purity in a category that is
fraught with questionable practices. Being a member of
the Tata family has meant that it can leverage the
group’s well-earned reputation for ethics and values in a
business where such attributes are critical to win the trust
of
consumers. Tanishq consumers can afford to take issues
such as purity for granted, and they know they can
depend upon the brand to deliver quality products all the
time. The brand’s winning virtues in design and overall
quality have shaped a class of discerning buyers who
seek the best in jewellery products.

Leadership and innovation are two of the other brand

features that Tanishq is consistently identified with.
These values have helped the brand bond with its
consumers like no other Indian jewellery retailer.

TANISHQ IN INDIA
TANISHQ is India's largest, most desirable and fastest
growing jewelry brand in India. Started in 1995, Tanishq
is the jewelry business group of Titan Industries
Ltd - promoted by the TATA group, India's
most respected and widely diversified business
conglomerate.

This year marks a decade of successful innings for

Tanishq. With a retail sales of 1200 crore last
year and gunning for2000 crore this year,
Tanishq has arrived in the Indian jewelry
market. It is a story of a successful Indian enterprise,
which has delivered value to its customers and
shareholders in a complex category, marked by its
completely localized front end as well as back
end.T a n i s h q h a s s e t u p p r o d u c t i o n a n d
s o u r c i n g b a s e s w i t h through research of
the jewelry crafts of India. Jewelry at T a n i s h
q iscrafted in one of the world's mo
st
modern factories. The factory
complies with all the labor and
environmental standards. Located at Hosur, Tamil Nadu,
the 1,35,000 sq. ft. factory is equipped with the latest
and most modern machinery and equipment. Every
product at Tanishq i s p a i n s t a k i n g l y c r a f t e d
to
perfection. Diligent care and quality
processes ensure that the Tanishq
f i n i s h i s unmatched by any other jeweler in the
country.

Tanishq challenged the age-old jeweler’s word with

TATA's guaranteed purity. It exploded the market
with facts about rampant impurity across India.
I t introduced technology- backed challenge in
a category completely g overned by
individual trust. Tanishq introduced
i n n o v a t i o n s l i k e Karat meter, the only non
destructive means to check the purity of gold.

Tanishq also introduced professional

retailing in the disorganized Indian jewelry
bazaar, where women can shop with comfort and
peace, without worrying about the purity of the jewelry
they are buying, as well as, select from the
best jewelry collections available in the Indian market.

Tanishq today is India's most aspirational fine

jewelry brand with 91 stores in 64 cities, with an
exquisite range of gold jewelry studded with
diamonds or coloured gems and a wide r a n g e o f
equally spectacular jewelry in 22Kt
p u r e g o l d . Exquisite platinum jewelry is also part
of the product range.

“Jewellery is one of the last great commodity frontiers in

India; i t has remained so because this market i s
very fragmented,very much unorganize
d.
T a n i s h q h a s successfully taken on the challenge of
transforming t h i s f r o n t i e r i n t o a r e l i a b l e
consumer space by bringing to it all th
e v i r t u e s a n d b e n e f i t s t h a t branding offers”
- Harish Bhatt, CEO, Tanishq
SOME OF TANISHQ’S COMPETITORS

Asmi
Asmi, one of the leading diamond brands of the country,
was launched, In 2002 by The Diamond Trading
Company Ltd (DTC). T h e A s m i d i a m o n d
Jewellery Collection is crafted to
beautifully compliment and complete her. Asmi caters to
the w o m e n o f s u b s t a n c e & s a t i s f i e s h e
r
m i n d f o r r e w a r d s recognition, evolving to
suite her style & Personality. The brand has been
endorsed by various celebrities such as Kajol, Mandira
Bedi & Perizad. All these women epitomize the
different strengths. An Asmi woman is closely
identifies with free-spirited, goal-oriented &with an
inner fire.

Nakshatra Diamonds
The world renowned Nakshatra diamonds were
launched in2000, with an equally dazzling
Aishwarya Rai as its brand ambassador. In the
present scenario Nakshatra diamonds occupy a
leading position in the fashion diamond
jewelry segment. The traditional diamond is the most
wanted design among Nakshatra diamonds.
Nakshatra diamonds claim to shine your glamour
and love life. They have aptly put their slogan as
"brightest circles of l ight." Elegant and graceful
Nakshatra diamonds are the epitome of passion,
attitude and independence
Gili
Gili was launched in 1994, targeting mainly the
youth who wanted to celebrate Valentine's Day.
Since then, the brand has clocked a turnover of Rs. 90
crores.

Nirvana Diamonds
Nirvana Diamonds from Fine Jewellery (I) Ltd. was
launched in 1987 in India. Nirvana diamonds are
targeting at fashion c o n s c i o u s , m o d e r n a n d
independent thinking women.
Internationally acclaimed
N i r v a n a d i a m o n d s a r e manufactured
by using s tate- of- the- art technology. As a
proof of their quality Nirvana was among one of the
brands to offer lifetime warranty to its consumers.

D'damas Diamonds
D'damas Diamonds are part of Gitanjali Digi co
Group and one of the earliest diamond houses
established in India in1966. On the present day
D'damas Diamonds offer highly modernized
diamond cutting and polishing facilities at five
locations in India. D'damas Diamonds claim to
promote arange of emotions through their collections
Adora Diamonds
Adora Diamonds were launched in In
d i a i n J u l y 2 0 0 3 b y Mumbai based Concept
Jewelry
(India) Ltd. On the present d a y t h e s t i l l
expanding retail network centers of A
d o r a expands to 117 outlets in 47 cities of India.
Adora means glory in Spanish and claims that
i t s diamond collection i s themed on love. Adora
diamonds are for adornment of every m o m e n t ,
occasion, and phase of life through i
t s u p a n d downs. The Swaranjali signature
collection
of living legend Lata Mangeshkar is a uni que
feature of Adora diamonds. Each piece of
Swaranjali collection i s conceptualized and
approved by Lata Mangeshkar and bears her
laser printed signature

Kiah Diamonds
World's largest volume manufacturer of
diamonds-Sheetal manufacturing Company
(SMC) launched its exquisite Kiah diamond
collection in October, 2004 . Kiah diamonds
are claims to be for celebrating womanhood.
The brand name 'Kiah' means beautiful place. On
the latest Kiah diamonds have won the Best
Showroom in the DTC Diamond season for 2005
– 2006.
TANISHQ – MARKET RESEARCH
MARKET research On TANISHQ
Tanishq emerges as the best known brand with the
highest awareness and recall. The difference
between the leaders and the follower’s is always
greater when the former have a head s tart. And
when the pace and efforts of the leaders
intensify, the possibility that they will continue to be
at the top i s a foregone conclusion.

The Solitaire - TNS Survey shows that Tanishq is

the best known brand across the three cities of Mumbai,
New Delhi and Bangalore, a finding which lends
credence to the leadership factors. More than 65
percent of the target audience had no hesitation
in coming up with the name, proving that the
extensive branding exercise u n d e r t a k e n b y
Tanishq (a division of the Tata grou
p company, Titan Industries) has paid off well. Two
decades in the business, over 70 retail outlets
across the country and p i o n e e r i n g e f f o r t
sto make jewellery buying into an
unforgettable shopping experience -
a l l t h e s e f a c t o r s combined to make the brand
into a household name.

India's Top Ten Best Known Jewellery Brands

THE SURVEY
The Indian jewellery industry is seeing
u n p r e c e d e n t e d activity on the market front
with new entrants coming in all t h e time.
Consumer behavior also is
u n d e r g o i n g a transformation. The Solitaire-
TNS Survey to find out India's b e s t k n o w n
brands (and other pertinent details)
w a s initiated with a view to assist and equips
the
industry with information that goes beyond the
ordinary.

"Men buy products while women choose

b r a n d s , " s a y s model-turned-designer and CEO
of a billion dollar company, Kathy Ireland, a fact which
jewellery brand managers in India w i l l n o t r e f u t
e.
Hence the Solitaire - TNS Survey acr
o s s Mumbai, New Delhi and Bangalore was
targeted solely at women.

While the sample s ize was small, 600 +, the

fact that the target group was covered in and
around shopping malls, banks, corporate areas
and commercial zones, made the sample more
relevant to the objectives. The survey was
conducted through personal interviews over a period
of 15days.
TURNAROUND STORY
When we started out we didn't think that we
could achieve this, but now being jewellers to
the nation doesn't seem so distant.

- Tanishq COO, Vasant Nangia, in March 2000.

The Unsuccessful Launch

In 1995 , Titan Industries, India' s leading
manufacturer of watches, launched the Tanishq
range of gold watches and jewellery. Till then, the
Indian jewellery market was to a large extent
unorganized, with a few recognized names such
as Tribhovandas Bhimji Jhaveri and Mehrason's.
Tanishq, an e n t i r e l y n e w c o n c e p t i n t h e
I n d i a n m a r k e t , t h u s h a d t o s t ruggle hard
to be accepted by the customers. Industry
watchers were extremely skeptical of Tanishq
and doubts were being cast over its prospects. Tanishq
began by offering jewellery in the 18-carat gold
range, with designs borrowed heavily from
contemporary European brands. The
company justified its decision saying that it
wanted to be 'different' from the traditional Indian
offerings.

Tanishq performed very badly in the next

three years, posting a huge loss in 1997-98,
proving its detractors right. Jacob Kurian,
Tanishq' s chief operating officer admitted, "
Tanishq, as a concept, was far too ahead of its times."
Even if one agreed with Kurian, it could not be denied
that Tanishq did commit mistakes.
Analysts decreed that the company's strategies were
wary. A t t h i s p o i n t , T a n i s h q t o o k v a r i o
us
s t e p s t o c o r r e c t t h e mistakes it had
committed and very soon, posted its first ever
operating
profit in 1999. In 1999 -00, sales doubled to Rs
1532 million against Rs 743.8 million recorded in 1998-
99a n d r e a c h e d R s 2 0 0 0 m i l l i o n i n 2 0 0 0
- 0 1 . T a n i s h q f a r e d equally well on the
export front also with heavy exports to UK, US,
Australia and West Asia.

Tanishq was the largest overseas chain in

US with 1 , 200 outlets. In the year 2000, exports
contributed 10% to the company's turnover. The
story of Tanishq, once written off as a losing
proposition, making a remarkable turnaround was an
example of a company single-mindedly working to
make its own mark in the t radition bound Indian
jewellery market. Behind this success was, of
course, a well- planned and well-executed marketing
plan.

Background Note
Titan Watches Limited was promoted jointly
by Questar Investments Limited (a Tata group
company) and Tamil Nadu Industrial Development
Corporation Limited (TIDCO). The company,
incorporated in July 1984 in Chennai, was started in
technical collaboration with France Ebauches (a
French company), one of the world's largest
manufacturers of watch movements. Initially
involved in the watches and clocks business,
Titan later ventured into the jewellery
businesses. The company was India's leading
manufacturer of watches, marketed under the Titan
and Sonata brand names with a 25% share of the
total domestic market.
Titan established its first manufacturing facility
in Hosur, Tamil Nadu and i t s f i rst satellite
watch assembly unit at Dehradun, Uttar Pradesh
was started in 1990. In 1992, Titan set up a joint
venture, Timex Watches Limited, with Timex
Corporation of USA to market Timex watches in
India.1 Andin 1995, Titan changed its name from 'Titan
Watches Ltd.' to' Titan Industries Ltd.' in order to
change its image from that of a watch
manufacturer to that of a fashion accessories
manufacturer. In the same year, it also started its
jewellery division under the Tanishq brand. At this
point of time, the jewellery business was highly
localized and the concept of branded jewellery did
not exist. In the late 1990s, India had around 0.2
million jewellers scattered across the country.

Jewellery had predominantly been used as an

investment rather than adornment. Hence, a change in
the perception of jewellery from an asset to a fashion
accessory was extremely difficult to bring about.
People generally bought gold from t h e s a m e
family jeweller they had trusted impl
i c i t l y f o r generations. Moreover, these jewellers
made the jewellery to order and often bought back
their products at the prevailing market rates.

Thus, from the very beginning, Tanishq

found i t hard to o v e r c o m e t h e I n d i a n
consumer's preference for buying
traditional jewellery only from family jewellers. The
sleek and
contemporary designs being offered did not go
down well with the Indian customer who was used
to heavy, traditional designs.
Vasant Nangia, erstwhile Chief Operating
Officer, Tanishq said, " When we l aunched the
Tanishq range, our designs were not
appreciated initially as they were believed to be
extremely Western. Also, we offered only 18
carat gold." Over a period of t ime, Tanishq' s
research revealed many other loopholes in its
strategies.

Setting Things Right

Tanishq found out that it had gone wrong mainly in two
areas- the product proposition and retailing. Initially
with a focus o n t h e e x p o r t m a r k e t , i t s
d e s i g n s w e r e p r e d o m i n a n t l y Western, and
the same line of jewellery was sold in India as w e l l
.
However, when it shifted its focus t
o t h e d o m e s t i c market, it was unable to sell
these
designs. Therefore the first step was to change
the brand positioning from that of an elitist and
Westernized offering to a more mainstream,
Indian one. The 18 -carat jewellery range was
expanded to include 22 and 24 carat
ornaments as well. Tanishq also made
attempts to redefine traditional styles in its
designs. Tanishq realized that, given the
diverse nature of Indian ethnicity, it would have to
cater to tastes of all regions.

Therefore, the emphasis shifted from the erstwhile

modern d e s i g n s t o m o r e e t h n i c o n e s a n d
t r a d i t i o n a l o r n a m e n t s (based on designs
from various states) were launched. The company
also began seasonal and localized promotions
based on Indian festivals, such as during Durga Puja
in West Bengal, Onam in Kerala, Diwali in north
India, etc. Johnson Verghese, divisional head,
sales and marketing, said, "We also decided to go in
for transmigration of designs. So we not only got in
more Indian motifs but also s tarte d s tocking
typical designs from Tamil Nadu in Mumbai and
those from Bengal in Delhi. These designs,
though Indian, provide the variety to what the
people in a particular area were used to seeing."

Tanishq's team of in-house designers came out with

about 3, 500 designs based on current t rends
and the feedback from s tores. At least 10 % of
these designs were changed every quarter and
fresh ones were added to the stock.

Tanishq gave complete freedom to the retail outlets

to pickup designs, which they thought wo uld
sell in their s tores. Almost all the outlets
s tocked the ' best selling' range of designs,
which did well across the country. T a n i s h q w
asnow pitted directly against the
t r a d i t i o n a l jewellers who were offering similar
ornaments. In order to add some value
proposition to rise above the
competition, Tanishq decided to address the
issue of gold purity, which was most important to
the customers.

Traditionally, conventional jewellers used the

touchstone to t e s t t h e p u r i t y o f g o l d .
A p a r t f r o m t h e f a c t t h a t t h e customers
did not trust the method, it was also alleged that a
slight amount of gold was always lost while
testing. The customers had to accept this for
want of an alternative. In 1 9 9 9 , T a n i s h q
introduced the revolutionary concept
of caratmeters in its retail boutiques. The caratmeter
used X-rays to give an accurate reading of the
constitution of gold in the ornament within three
minutes. Imported from Germany a t a cost of
Rs 1 million each, caratmeters
t h o u g h expensive, proved to be the biggest USP
for Tanishq in the coming years.

Fact, its sales increased by 20 -30%. The concept

was later on heralded as a bold s tep towards
pr ofessionali zi ng the I n d i a n j e w e l l e r
ybusiness. In an attempt to elbow
o u t competition, Tanishq conducted tests on
10,000
ornaments selected at random. In some cases the
caratage was found to be as low as 10% and almost
65% of the gold tested was below 22 carats. As the
caratage offered was on the lower s ide in
t raditional jewels, the jewellers kept the
making charges very low to entice customers. This
had become the norm all over the country.
Tanishq had to struggle hard to break this
convention.

As the concept of caratmeter became more widely

known, customers began to realize that the rates they
were paying for Tanishq jewellery were indeed justified.
A Tanishq official commented, "They have begun to
understand the total value proposition that Tanishq
offers."

An all-India customer satisfaction s

urveyconducted by Tanishq in 2001
revealed
t h a t o v e r 5 0 % o f a l l T a n i s h q customers
intended to make it their jeweller, replacing many long-
s tanding relationships with the t raditional
jeweller. When Tanishq was launched, i t sold
most of i t s products through multi brand
s tores. This did not help the Tanishq b r a n
dto make its mark. Having realized
this,
T a n i s h q decided to set up its own chain of retail
showrooms in 1998.

This proved to be a very wise move as

sales picked up almost immediately.
ByJuly 2001, it had 47 'Tanishq bou
tiques'in 37 cities – 12 were in the m
etros -
D e l h i , Mumbai, Kolkata, Chennai and Bangalore, the
rest in smaller cities with a population of at least 0.5
million such as Trichy, Nagpur, Amritsar and Patna.
The focus on smaller cities paid off well with
the annual g r o w t h b e i n g a s h i g h a s 1 5 0
%
a s c o m p a r e d t o t h e 4 5 % growth in metros.
The number of boutiques was expected to reach 50
by the end of 2001 and to 70 by 2002. Tanishq's
efforts to standardize the price of its ornaments proved to
be another milestone in its success.

Gold prices differed across the country as they were

based on different parameters concerning the
local markets. In a bid to control gold price
variations in different parts of the c o u n t r y ,
Tanishq decided to have a standard
g o l d p r i c e across all its showrooms from March
2000.

The standard price was made bindin

g o n a l l T a n i s h q showrooms. Tanishq
based
its gold prices on international exchange prices,
resulting in prices often being lower thanthe local
market prices. Nangia said, "We already have a kind o f
standard pricing in place, but this w
ould
r e p r e s e n t a formalization of that system to the
public." Tanishq even had plans to link directly with
the London Metal Exchange (LME) for daily quotes in
the future. Tanishq set up an ultra-modern and large-scale
manufacturing unit in Hosur, Tamil Nadu at a cost of
Rs 600 million. The unit had facilities like
refining, alloying and stone casting and a dust-
extraction system that kept gold losses down to 2% of
the raw material while local jewellers typically lost 8-
10%.

This in-house manufacturing facility was the main

reason, which enabled Tanishq to charge the same
price across the country. One of the company's most
important initiatives was customer service enhancement.

Tanishq launched a direct consumer contact programme

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 jewell er. All
Tanishq outlets gave a 100 % return guarantee
on i t s brand of jewellery and also exchanged
other jewellery after deductions depending on
purity.

A customer satisfaction measurement program was

started w i t h t h e h e l p o f C u s t o m e r
S a t i s f a c t i o n M e a s u r e m e n t Management
(CSMM), an associate of IMRB. CSMM tracked
customer satisfaction parameters for Tanishq on a
quarterly basis. This gave the company the
benefit of bench marking against local and
international players and also aided in
improving repeat purchases. As a result, Tanishq was
able to directly link the remuneration of franchisees
with customer satisfaction. The company' s
corporate gold gift scheme('When you want to
say thank you, say it in gold'), launched in
December 1998 proved to be a major success.
Tanishq de li ve re d 5 0 , 0 0 0 c u s t o m i z e d
g o l d c o i n s t o 0 . 2 5 m i l l i o n Maruti car
owners nationwide as part of the 15th anniversary
c e l eb r at i o n s o f M a r u t i U d y o g . B y
2 0 0 1 , t h e s c h e m e ac c o u n t e d f o r a lm
os t 5 % o f t h e t u r no v e r a n d o v e r 3 0
corporate clients like Coca-Cola, the UB Group,
Whirlpool,
the TVS Group, Ceat and Liberty Shoes.

The communication and promotion

budget was increased from Rs. 65 million in 1999-
2000 to Rs 100 million in 2000-01. A majority of
this was spent towards advertising, while apportion
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 10 0 million
was split into four parts, comprising national-
level spends (both electronic and print media),
regional budgets, direct mail and research. For the
first time, Tanishq initiated a long-term media plan,
aiming to gi v e t h e b r a n d a r ou nd - the - ye a r
pr es en c e a n d e n h a n c e aw ar en es s . T
h e co mm un ic at io n f o cu se d o n d e si g
n a n d quality instead of the price.
HOW DID TANISHQ TURN AROUND?
Jacob Kurian, chief operating officer (jewellery),
Tanishq isn't tired of saying that the story of his
company mirrors a Bollywood movie.

There's drama, celebration, then betrayal in the family,

followed by action and, of course, a happy
ending.Tanishq, the jewellery business group of Titan
Industries is the blockbuster action thriller from the Tata
group.

After five years of consistent losses, the company, on

Thursday, announced the completion of a dramatic three-
year turnaround culminating in annual sales growth of 39
per cent and profit growth of 318 per cent.During 2002-
03, Tanishq recorded a sales turnover of Rs 389 crore (Rs
3.89 billion) -- at consumer prices. By 2007, it hopes to
take that to Rs 800 crore (Rs 8 billion)

Today, Tanishq has already become one of the top five

retailers in the country. It contributes 40 per cent to
Titan's business and is expected to account for 55 per
cent by 2007.By then, Tanishq's profitability will also be
good enough to offer 28 per cent return on deployment
of 25 per cent of the capital.

Year Sales (Rs crore)

1996-97 32
1997-98 38
1998-99 73
1999-2000 141
2000-01 188
2001-02 299
2002-03 389
It's a long way for a company that almost folded up
before it could turn in its first ever profit. Since, its
launch, Tanishq has not only been grappling the
tough market conditions but also internal strife and
Doubting Thomases.

"Many people believe we should not be here today.

They have kept telling us that the business logic is
against what we set out to do. But I am glad we have
proved them wrong," says Kurian proudly.

The estimated Rs 40,000 crore (Rs 400 billion) gold

jewellery market in India is a rough one. There are
over 300,000 jewellers, each powerful in his
neighborhood.

Till the last two years, national players were

almost non-existent.

One of the largest consumers of gold, the Indian

household had a marked preference for 22-karat gold,
as opposed to the 18-karat designs that jewellery
chains worldwide chose to do their designs in.

Not surprisingly, the skeptics were asking what was

Titan doing in the jewellery business?

In the late eighties, when India was facing a massive

foreign exchange crisis, Titan, the watches division,
was told to look for a way to earn its own foreign
exchange.

Jewellery seemed like a huge and interesting market

to get into and Titan decided to set up Tanishq as a
jewellery division that would be focused largely on
exports.
However, by the time it acquired the skills and set up
the plant, the world had changed. India no longer had
a foreign currency problem, imports were easy to
come by, demand had come down in the global
market, supply had grown in Asia and margins had
become very thin.

Tanishq then decided to focus on the Indian market.

In August 1992 a pilot plant was set up and
production started in two years later. In 1996,
Tanshiq launched its first store. It was a hitherto
untried concept. The jewellery business in India was
highly fragmented and ruled over by local players.
There was no national jeweler that people could buy
from, despite that India is the largest consumer of
gold in the world.

Clearly, the local satraps had a very tight

stranglehold on their markets and it was difficult for
a pan-Indian player to break into. Being ethical too
was a problem. Titan estimates that up customers and
the Government is defrauded of up to Rs 5,000 crore
(Rs 50 billion) annually due to unethical business
practices like under-karatage of gold,
misrepresentation of quality and tax evasion.

As a company which was part of the Tata group,

known for maintaining high ethical standards,
Tanishq prided itself on delivering customer value
through a fair and transparent business model.

But that wouldn't help.

Till 2000, Tanishq could not find its feet in the

market and its losses were mounting. In 1998-99 it
showed losses of Rs 10.40 crore (Rs 104 million)
though sales turnover was increasing.

May 2000 turned out to be the defining period in the

company's history.The then managing director of the
company, Xerxes Desai had a choice between
Bhaskar Bhat and Vasant Nangia when it came
to deciding who would succeed him.

Bhat won and was anointed as the next managing

director by Desai himself and Nangia became the
chief operating officer.

Nangia was the hands-on man at Tanishq. A twenty-

year veteran of the group, he was the one who had
charted out the expansion plans, which included
increasing the number of exclusive boutiques to 67
from the then 30 and launching a new men's range of
accessories.

But a day after Bhat was announced at the successor

to Desai, Nangia quit. He took along with him six
senior executives of Titan. It was a blow that many
thought would sink the company.

"The entire sales and marketing team resigned on that

day. The company was rocked by what happened.
Many thought this would be finally the way Titan
closed down its jewellery business. After all, we were
in our fifth consecutive year of losses then," says
Kurian.It seemed an ignominious way for a Tata
company to go. And like Kurian says it was too soon
for the movie to end.

So, a new and admittedly inexperienced team was

put together. The team had an onerous task on its
shoulders. It had to not only stem the increasing
losses shown by Tanishq and but also show some
profits if the company was to remain in business.

Tanishq had quite a few problems on its hands then.

Its high decibel media advertising wasn't working. A
stream of adverse media reports had instilled the fear
that its shareholders would pull out anytime. And
worse, it had very little time on its hands to show a
turnaround.
 But as Kurian saw it, Tanishq's woes were rather
simple: There were just not enough customers in its
stores."For a retailing chain, that's the worst thing that
can happen: having no traffic in the stores," says
Kurian.

A customer survey revealed multiple problems.

Despite its high-blitz ad campaign, many didn't know
what Tanishq was about, others found it too
expensive and some felt that the product was not for
people like them.

Either way, getting customers back into the store

became a priority.

PROFITS GENERATED

Year Profits generated (Rs crore)

1996-97 - 10.60
19K97- - 21.96
98
19u98- - 10.40
99
20r00- 2.07
01
n 20i01-02 1.87

Kurian and his team then decided to launch the fifth

anniversary celebrations of Tanishq that would offer
discounts to customers and induce them to come to
the store.
The ploy worked. "We had customers waiting for the
store to open. Sometimes we had to call the security
guards because of the crowds. We just couldn't
believe it," smiles Kurian.

There were other minor tweaks made too. Ad

campaigns now started to list out the products that
Tanishq had. So bracelets, rings, chains, pendants
were explicitly mentioned in each ad. A range
starting at Rs 399 was launched.The aim was to
bring down the price barrier significantly.
Collections for the working women and a new set of
contemporary designs were brought into the stores.

Almost all of the efforts paid off. A year later,

Tanishq had made its first ever profit in the entire
existence of the company. It was a measly sum of
around Rs 2 crore (Rs 20 million), yet it was a
beginning.The next year, the company decided to
write off some of the financial baggage it had been
carrying. Profits generated dipped as a result but

Tanishq was clearly on a revival.

The company changed quite a few of its original

strategies along the way. Tanishq had its first
showroom in Chennai in 1996. Today it has over 60
showrooms in 47 cities. Only six of these are owned
by the company. The rest are run by franchisees.

The model has helped take away capital costs from

the company and pass them on to franchisees who
will invest money to help the company grow. In all,
Tanishq managed to limit its fixed asset investment
to Rs 27 crore (Rs 270 million).
Contribution to Titan's growth

Year Tanshiq contribution to Titan (in percent)

1996-97 8
1997-98 14
1999-2000 24

2002-03 43

Post September 11 attack on the World Trade Center

the volatility in the gold prices led to a steep decline
in the demand for gold. In 2002, the gold demand
declined by 19 per cent, from 843 tons to 680 tons.

However, Tanishq was on a roll. It grew its retail

sales during 2002-03 to Rs 332 crore (Rs 3.32
billion) from Rs 239 crore (Rs 2.39 billion).Almost
Rs 57 crore (Rs 570 million) came through corporate
sales and exports. Corporate and institutional sales
had become an unexpected money-spinner for the
jewellers.

Today, Tanishq counts companies like Hindustan

Lever Limited, Pfizer National Panasonic, UB Group,
Tata Tea and Tata Chemicals among its clients."We
saw corporate sales as a new route to customer
acquisition. Institutional sales help us beat targets,"
says Kurian.
Since the last three years, Kurian and his team have
brought in quite a few changes to the way Tanishq
operates. A steady stream of jewellery collections
each with its distinct target audience has been
launched. Aria, for seven stone diamond jewellery,
Hoopla, focused on diamond studded hoops and
Collection-G for lower priced gold jewellery with an
interesting twist are just a few lines that have come
out of the Tanishq stable in the last three years.

Manufacturing has been made more flexible. New

Japanese manufacturing machines have been
introduced at the Hosur, Tamil Nadu plant of the
company. The emphasis is now on customisation
according to customer demands. The challenges
remain. Profit figures have yet to rise significantly.
In 2002-03, on revenues of Rs 389 crore (Rs 3.89
billion), Tanishq made a profit of only Rs 7.82 crore
(Rs 78.2 million).

A slew of national brands have sprung up. From

Nakshatra to TBZ to Carbon, Tanishq has to battle a
lot more at the market place. Yet, Kurian says now
it's a great time to be in business. "We believe
jewellery business is one of the few 'China-proof,
WalMart-proof' kind of businesses," he grins.
CONCLUSION WITH THE
QUESTION OF GLOBALISATION
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 inspirational 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. Now the question arises why Tanishq will
make a great Global Brand.

CONSISTENCY IN DELIVERING
ON THEIR PROMISE:
Tanishq promises superior quality jewellery with purity
in gold. 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. Tanishq eliminated this and has 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.
It is first and only jeweller who guarantees the purity of
its gold jewellery and certifies the quality of its diamonds
and colored gems in writing. 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).
SUPERIOR PRODUCTS AND
PROCESSES
Widely acknowledged as a design leader, Tanishq is
known for its ability to develop specialized design
collections. Tanishq is the only jeweller that houses a
full-fledged design studio with a team of several
international award winning Indian designers.
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.

Tanishq jewellery is crafted in one of the world's most

modern factories. The factory complies with all labor
and environmental standards. Located at Hosur, Tamil
Nadu, the 1, 35,000 sq. ft. factory is equipped with the
latest and most modern machinery and equipment. 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.

Distinctive positioning and customer experience. Yet

another aspect of Tanishq that sets it apart is a whole
new jewellery buying experience offered by its exclusive
retail showrooms. Tanishq has not only developed a
national retail chain with uniform and transparent
practices and policies but also maintained consistency of
retailing standards across all these showrooms on an
ongoing basis.
It has a distinctive positioning in India as it is known for
its high quality and jewellery with international
standards. Also, since they have many stores across the
country they give guarantee on their jewellery and also
offer to repair it free of cost anywhere across the
country.

AN ABILITY TOP STAY RELEVANT

Tanishq was established in 1995 and within ten years it
has become the largest and most desirable brand in the
jewellery segment in India. They have constantly
introduced new offering to their consumers and have
come up with new innovative ideas. They have excellent
after sales service and they have been committed in
providing good and honest service.

A COMPELLING IDEA:
The idea of having branded jewellery was a totally
unique idea. Coupled with a promise of purity and a
unique experience was very compelling. It persuaded a
lot of people especially the people in the metros and
semi metros to leave their traditional jewelers and go for
Tanishq.

There was always lack of trust among the consumers for

their jewelers. Tanishq removed that with a promise of
purity. Hence what it did in India it can replicate across
the globe. Offer a totally new perspective to Jewellery
buying especially when it comes to exquisite oriental
jewellery. Oriental Jewellery across the world is usually
found in flea markets or place like China Town or Indian
Markets. Going into the main markets in the Western
world will give Tanishq the edge.
A RESOLUTE CORE PURPOSE AND
SUPPORTING VALUES:
Tanishq 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 consumer
when s/he comes to the store.

A CENTRAL ORGANISATIONAL
PRINCIPLE:
Tanishq has to translate what its brand signifies to the
whole of their organizations. They have done that
exceptionally well in the Indian context. A visit to any
Tanishq outlet shows that. The people behind the counter
are polite and courteous. They know that they are there to
deliver the promised exceptional services. The people at
Tanishq know what is required of them and hence this
will prove beneficial when Tanishq goes global to
maintain its global standards.

Tanishq, as and when it decides to go global will make a

great global brand. As we can see they have all the
characteristics, which all the global brands have, it can
be said that Tanishq has all the potential to become a
leading global brand.
BIBLOGRAPHY
www.rediff/business.com
www.tanishq.co.in
www.wikipedia/tanishq.com
www.google.com

OTHER SOURCES:-
Newspaper
Business magazines.
 INDEX / CONTENTS
1.Introduction about Tanishq
2.Launching of Tanishq
3.Product
4.Recent development
5.Promotion
6.Price value
7.Tanishq in India
8.Tanishq’s competitors in India
9.Tanishq’s market research and
survey
10. Turnaround story
11. How did tanishq turnaround
12. Conclusion with Globalization