TANISHQ

The beauty of Oneness.

Afan Thabreez KP, Charuvi Ranjan, Kanishk Singh,

Shreyash Ojha
11.10.2022
Apparel Quality Management

Under the Guidance of

Prof. Archana Gandhi, NIFT Delhi.
INTRODUCTION TO THE COMPANY

A part of the Titan Company, Tanishq is an Indian jewellery brand. Tanishq was
established in 1994 and has its headquarters in Bangalore, India's Karnataka state.

Xerxes Desai, Titan's first managing director, adopted the name Tanishq.

The first two letters of Tata and "NIKA," which in Sanskrit means "gold coin or necklace,"
were combined to create the name, albeit the k has been changed to a q. According to
additional sources, the term is derived from the Sanskrit words Tan (body) and Nishk
(gold decoration), which are associated with exceptional craftsmanship or
uncompromising design.

Tanishq strives to portray jewellery not as a product but as a manifestation of artistry.

They strike the perfect balance between traditional aesthetics and contemporary appeal,
while capturing the essence of beauty and celebration of the Indian women.

MISSION

The mission of Tanishq is absolute customer-centric service. It has oriented all its
practices (CSR, Quality, Aesthetics, etc.) towards providing a better experience at the
consumer end.

It also promotes employee appreciation, healthy performance culture and an inbred

sense of teamwork which is synonymous with the Tata group.

Tanishq has been a forefront of innovative creativity and portrays a profound passion
for excellence in all its endeavors. It also believes in corporate citizenship and a social
responsibility to make India a better place, always.

VISION

Tanishq has a vision to be a world-class, innovative and progressive organization and to

build India’s most desirable jewelry simultaneously. It is already both recognised and
respected as an organization for excellence and trusted leadership of the Jewelry

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Industry in both India and overseas. It aims to promote quality retail experiences and a
healthy ethical business conduct for the industry as a whole.

CHIEF EXECUTIVE OFFICER SPEAKS

The jewellery sector has many employment opportunities giving scope for skill
development, especially because more and more institutes are offering courses. At
Tanishq, the customer is the prime. “We keep changing designs and come up with the
latest and unique collections, and themes based on the insights provided by the
customers. For that, we regularly meet the customers in person and seek their feedback
on the latest trends. About 2.5 million customers visit the Tanishq website each month
and our executives ensure that they establish a direct connection with them to know
their perceptions.”We also encourage the customers to visit our factories to understand
the quality standards. The customers are also invited to be part of new campaigns
introduced from time to time.For Indians, gold is beyond a means of adornment. They
connect deeply with jewellery. It is not just an asset, but it is an emotion. The customers’
perception has changed post-Covid. They want to celebrate today instead of wait for
tomorrow. Accordingly, we have introduced more wearable and affordable designs that
suit their current needs.

QUALITY FAILURE

SUPPLY CHAIN FAILURE

The performance of the existing supply chain was being hampered by a number of
connected problems. Inventory management was the main issue. The cost of inventory
was in the neighbourhood of $34 million when the company's annual turnover was $75
million. Additionally, nearly 80% of the overall inventory was made up of finished goods.
This was a worrying sign of ineffective inventory control. Lack of ownership of
completed goods inventory and erratic material indenting were the main causes of the
high amount of inventory. Inadequate category or assortment planning further increased
the lead time for order fulfilment. This led to late order delivery and imperfections in
quality control, as well as widespread dissatisfaction and loss of customer recall value.

ADVERTISEMENT FAILURE

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 TANISHQ DELETED AD - HINDU MUSLIM LOVE STORY

The ad showed a pregnant Hindu woman escorted by her Muslim mother-in-law to her
baby shower ceremony. The woman then asks her mother-in-law that "this ceremony is
not held at your home...", to which the latter replies, "Isn't it a tradition to keep daughters
happy everywhere?"

As soon as the ad was released by the makers, it went viral on the internet, with netizens
slamming it for promoting inter-faith marriages. Some also questioned why is it always a
Hindu woman who marries into a Muslim family and not the other way round.

This advertisement was banned from Indian television and also sparked heated
controversy, as well as communal rife amongst the very consumers it sought to attract.

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SALES DATA OF LAST 5 YEARS

Net sales of Tanishq from Financial Year 2017-2022 (in terms of billion Indian
Rupees)

Cited from: https://www.statista.com/statistics/862490/india-retail-sales-value-of-titan/

The current competitors of Tanishq in the market are:

1) Reliance Jewellers
2) Kalyan Jewellers
3) PC Jewellers
4) Shubh Jewellers

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SUPPLY CHAIN MANAGEMENT

(Cited from case study of Tanishq by Ganesan Kannabiran, Dept. of Management Studies, National Institute of Technology, Tiruchchirapalli,
India)

Tanishq's first supply chain was made up of manufacturers, carry forward agencies
(CFAs), retailers, and raw material suppliers. There were three different sorts of
boutiques in the retail chain. They are:

(1) Firm-owned exhibition rooms (L1), where the company owned both the show rooms
and the stock.

(2) Management agents (L2), where the firm controlled the stock and the franchisee
owned the exhibition space.

(3) Franchisee (L3), where the franchisee held the stock as well as the display room.

Previous Supply chain

TIL's jewellery division was separated into a distinct SBU with a COO in charge (Chief
Operating Officer). To oversee the jewellery division and create consistent earnings
through a fresh strategy and workplace culture, the new COO was selected.

Under the direction of the new COO, significant adjustments were made in order to
increase profitability by integrating the entire supply chain. A cross-functional team was

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formed in 2002 to diagnose the situation and develop a thorough action plan, both short-
and long-term. The team was led by a renowned strategy consultant. A project with the
codename ASPIRE was then started with the aim of enhancing the jewellery division's
supply chain performance. As the majority of the working capital was used to remodel
the operations at company-owned and first-tier stores, inventory management needed to
be improved right away. The main objective was to create a responsive supply chain and
analyse market dynamics in order to get a long-term solution. The authorised team held
numerous rounds of meetings with the supply chain partners and at various
organisational levels. As a result, the entire organisation was reorganised in order to
successfully carry out the intended ambitions. Implementation of a four-pronged supply
chain improvement strategy was done while maintaining a focus on rapidly increasing
sales and streamlining business operations.

The following initiatives were taken out in order to revamp the supply chain of Tanishq.

1) Clean Inside-Out: The first project focused on improving the internal supply
chain with particular attention to inventory problems. Rationalising the product
categories provided insightful information about the stock. Many slow-moving
segments that make up less than 5% of total sales and have stock turnover rates
below average were rationalised. These product categories were phased out of the
offering because they lacked the ability to increase either the top line or the
bottom line. The idea of stock-turn based trade margin was presented to enthuse
and interest the partners. Franchisees now had access to a new trade policy that
delinks margin from turnover and allows for performance-based incentives or
disincentives for stock-turn.

2) Introduction of new channels: New channels were created with the dual goals of
enhancing revenue growth and bringing in asset lightening. These approaches
were developed and tested in a few boutiques. Based on the findings of the pilot,
course correction was implemented, and it was then scaled up to the entire retail
chain. Under new channels, many reforms were carried out such as:
● Prototype-enabled sales: A thorough investigation revealed that clients
who intended to buy jewellery with the intention of investing selected high
value studded items, which were sluggish moving. However, because the
items were so expensive, there were not enough items in each boutique to
give clients a wide selection. Since prototypes are precise reproductions of
the expensive studded products, they were thought to be the ideal

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 replacement for 18kt gold and diamonds. These initiatives helped the
discerning buyer choose from a wide variety of high-end jewellery designs
while also drastically reducing inventory. The pick of the discerning
customer is high-end jewellery. Tanishq Exquisites was the brand name for
38 locations, and this network allowed the business to sell considerable
amounts of product. Additionally, this resulted in a firm that was more
responsive and had less inventory while also offering more design options.
● MTO (Made-To-Order): Made to order enabled substantial improvement
in operations, considering a production lead-time of one month. Though
specific customer orders were taken since 2000, MTO was not a focus area
for the company. However, considering the possible impact on working
capital, MTO became another approach to improve the supply chain. In
order to accelerate MTO growth, 8,000 designs were identified which can
be serviced in two weeks against the normal lead-time of four weeks. A
separate cell was set up to process orders and coordinate manufacturing.
There was a significant growth in sales through MTO and commensurate
reduction in inventory over the years.
● Consignment sales: It was an important initiative, which was envisaged to
de-link the level of inventory to sales growth. Tanishq offered a chain of 69
stores and its retail expertise and brand to willing jewellery manufacturers
to see their money turn faster by supplying jewellery to the company. It
was also a fact that there was a spare manufacturing capacity of studded
jewellery in the country as many diamond merchants had invested into
manufacturing. Taking advantage of these the company started transacting
with vendors and got their stock into stores on consignment. Vendors were
paid as the sale happened and unsold stock was returned to the vendor.
This became a key initiative as Tanishq pursued its plan of rapid profitable
growth.
● Hub and Spoke: In order to guarantee delivery within a week, a new idea
known as Hub and spoke was established. Sets of the original products
were retained in the factory, and when an order was placed, the
manufacturer made a dispatch and restocked the stock. Consequently,
inventory was further reduced while maintaining delivery commitment by
maintaining a Kanban supply of diamonds (which have the longest lead
time among all raw materials).

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 3) Remodelling of order generation and fulfillment process (OG&F) process:
This was possibly the most important and long-term action performed at this time
to overhaul the supply chain initiative's entire structure. Both in terms of
periodicity and the calibre of assortment planning, the boutiques' indenting
procedure was completely irregular. There used to be a significant stockpile of
merchandise, which finally turned into non-moving stock. Very little science was
used, and the firm relied on the opinion of franchisees, the majority of whom had
no prior experience in the field of jewellery. The retail shop served as the sole
point of stocking, and production was only conducted in response to demand
established by each store.

4) Strategic outsourcing: Tanishq began outsourcing its simple gold items as part of
a strategic choice that took into account both the market's demands and Tanishq's
primary area of expertise, retailing. A few of the significant market demands that
have been found include: distinctive designs, volume demand, delivery,
competitive pricing, purity assurance, innovative product designs, etc.
Outsourcing was more about utilising market potential and lowering costs than it
was about making investments and expanding production. The majority of
vendors in India are highly trained, yet they operate in an unorganised industry
with little capital. Out of 50 vendors, only a select few met the criteria for
potential vendors in terms of investment, infrastructure, and awareness of market
requirements.

5) Enabling the role of IT in Supply Chain Integration: To connect all boutiques,

CFAs, and factories, a web-based IT programme called Gold Mine was put in place.
The system provides visibility into the status of boutique orders, and production is
coordinated with an internal system based on an ERP. The visibility of sales from
each boutique is improved thanks to the flow of sales data into Goldmine.
Management could monitor the success of marketing campaigns and promotions
at the boutique level, by price range and category.

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 Redesigned Supply Chain

QUALITY CONTROL

Tanishq uses a state of the art karat-meter, to check the purity of the gold for their
regular customers as well as walk-in customers who are coming to Tanishq for the first
time, for free.

Tanishq promises to give 100% pure gold, and give the best value for money for gold, and
to provide uncut, unrefurbished diamonds at the most affordable and honest pricing.

Another policy that striked out was to give 100% exchange value for gold.

Tanishq has set up production and sourcing bases through research of the jewellery
crafts of India. Jewellery at Tanishq 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 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.

The jewellery division of the company employs a highly skilled workforce of about 450
persons, 22 percent of them being women. The staff composition and profile at the
corporate office and the regions was mostly professionals in sales and marketing and

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specialists in design, retail and finance. The retail staff at company owned as well as
franchisee showrooms were given special training in retail and selling skills due to the
very nature of the products. Highly skilled and trained designers were based at the
company’s design studio and freelance designers were based in the major cities. The
jewellery division also draws upon the TIL’s resources, which were part of their watch
business, in certain functions like finance, HR and systems.

The association with Bollywood blockbusters like Paheli and Jodha 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.
While the success of a particular brand will depend on differentiation, affordability and
quality will be a key element in sustaining a brand. In addition, branded players require
focused advertising and astute salesmanship to compete with traditional jewellery.

The Golden Harvest Plan

One of the most profitable savings plans is Tanishq's "Golden Harvest Saving Scheme,"
which enables customers to set aside money each month and prepare for wedding
jewellery purchases. Your regular payments to us are secure, unlike savings at home
where money could easily be lost. Compared to alternative saving options like bank
deposits or post office savings plans, this scheme offers you significantly superior
returns. Additionally, you can stretch your jewellery budget thanks to Tanishq's special
incentive at the end of the plan time.

Purity Checks

Gold lovers can examine the purity of the gold they currently own by using purity
checks. The karat metre, the most accurate gauge of purity in the world, has a huge
impact on this. In just three minutes, it can accurately determine the purity of gold using
X-rays, providing the consumer with an advantage that is unrivalled whether buying or
selling gold. In actuality, it is the most reliable, non-destructive method of determining
the purity of gold. X-ray analysis has been incorporated into the certification procedure
for Hallmark Gold by both BIS in India and international organisations due to its
exceptional precision.

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CSR (CORPORATE SOCIAL RESPONSIBILITY) POLICIES

There are a plethora of CSR policies implemented by Titan (Parent company of Tanishq,
all CSR policies mentioned are synonymous with both). This company believes that
corporate responsibility begins with its employees. It ensures that harmony, peace and
inclusive approach at the workplace are maintained. Efforts are made by the company to
engage employees in programs designed to fulfil ecological and social responsibilities.

Some CSR policies undertaken by Tanishq are:

1) Titan Kanya: a nationwide initiative in India to empower girls by making sure

they finish their primary education up to class X. This initiative has benefited
about 5000 girls.
2) Employment of differently-abled people: Their watch and jewellery factories in
Hosur employ more than 120 people with disabilities.
3) Karigar Parks/Centres: The company supplies the tools, materials, and training,
and the jewellery makers use their skill sets to create jewellery of the highest
calibre and design as part of a social entrepreneurship project that houses
jewellery karigars in more than 14 parks and centres. The business makes sure
the best safety procedures are followed during the manufacturing process, as well
as the best working environment. The Karigar centres also offer boarding,
housing, recreational, and exercise facilities to the Karigars. Currently, this has
helped about 1400 karigars.
4) Titan Township: A sustainable neighbourhood in Hosur, Tamil Nadu, that works
with the NGOs MCA and Ashraya to house 1300 people.
5) Titan School and Titan Foundation for Education: A primary english medium
school upto class X, affiliated with CBSE, with over 700 students, has been created
and supported by Titan Company.
6) Titan Scholarship: Scholarships Based on academic performance and
socioeconomic background for more than 550 kids who belong to the
economically disadvantaged group, scholarships have been given to children in
the Tamil Nadu districts of Dharmapuri and Krishnagiri. This initiative was
expanded to include Uttarakhand in 2013–2014.

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