Product Policy and Brand Management

CASE STUDY ANALYSIS Tanishq: positioning to capture the Indian womans heart

Submitted By: Section B, Group 7 Praveen PGP/16/332

TITAN
Started in 1984 Joint venture between the TATA group and Tamil Nadu industrial corporation(TIDCO) Introduction of Quartz-The global standard Changed the retail environment from the utilitarian purchase in shop market to watch showrooms in high rent retail districts Core customer Upper middle class
Timepieces that made a statement
Repositioned by launch of Sonata, Fastrack and Nebula to

Gifts, Accessories and Fashion

Evolution of Tanishq Launch(1995)

Target Market Indias Super haves The very high end customers Nature of Competition The domestic jewelry and watch market

Jewelry that tells time Point of Differentiation - Ego satisfier Above the mundane and utilitarian Point of Parity Premium watch with high snob value

Watch to Studded Jewelry(1996)

Target Market Upper middle class women Nature of competition The domestic jewelry market

Adornment of both the body and the mind Point of differentiation 18 carat jewelry, western style and design, Point of Parity - Jewelry Tanishq Body love name and boutiques

Repositioning Tanishq(1997-2001)
Target Market Purity seeking aware buyers Nature of competition The local big players guaranteeing 22 carat

Looking good, feeling good all the time Point of differentiation Purity and Quality, style and design Point of Parity Traditional designs and plain gold jewelry

Mainstream Jewelry Market (2003-2005)

Target Market The confident Matriach and the balancer Nature of competition Full time jewelry as an investment market

A new tale of tradition Point of differentiation Modernized traditional designs and tastes, Tata trust and stores Point of parity Plain gold jewelry

Gold Plus
Tanishq show rooms are for elite - Gold plus showrooms are for semi urban and rural customers Purity and quality in both categories are same difference is in the type of designs offered Gold Plus -Revolutionized the Jewellery business by Offering pure gold from trusted player Transparent business practices Amazing retail experience At Reasonable cost

Brand positioning criteria for Gold Plus

Target Customers: Semi Urban and Rural Customers Characteristics of Target Customers
Potential buyers of gold jewellery but have resistance to purchasing premium brands like Tanishq Who have strong bonding with local family jewelers Who have varied expectations ranging from purity, discounts ,affordable prices,jewellery for all occasions etc.

Nature of Competition
Majority of Rural and semi urban jewellery market is Unorganized ,fragmented and dominated by the individual and family jewellers
Eg: Joy Allukas, Kalyan jewellers ,Malabar Gold etc.

Point of Differences
Promise of Purity
Purity certificates with all Goldplus products as guarantee for purity

Backed by Titan Experience and TATA brand

Leveraged the design and retail expertise of titan industries Local tastes and preferences Cost effective supply chain logistics Greater value for customers

Sheer Variety
extensive range of over 5,000 designs in 22 kt plain gold and diamond jewellery

Innovative golden schemes for all:

GoldPlus runs a monthly saving scheme called "Golden Future Savings Scheme consumers to plan future purchases in advance and pay for them in easy instalments

Distribution:
Goldplus is entirely franchise Driven model

Innovations in Promotions:
Weddings and Social events Customer loyalty programme ananta to create emotional bond between brand and customer

Point of Parity
Rural Marketing initiatives:
Competitors like gitanjali ,adora, kisna also have launched rural marketing initiatives

Pricing:
explosion in range of designs and price points for the rural customers along with assured buybacks

Designs
Small players introducing new designs every 4 months catering design conscious customers

Pitfalls of Tanishq
Positioning- failed to establish points of parity
As Titan ventured from luxury watches to jewelry brand, the perception of it as watches brand transcended to tanishq as well They concentrated on differentiating in term of premiumness and design attributes where as the customer looked at jewellery as a investment and hence were price sensitive They initially failed to evolve the customer perception about gold being a adornment and fashionable

Pricing:
Charging a high premuim was also a factor that kept the majority of the gold customers away

promotion
Substantial promotions were done to increase the brand awareness But it created a sense of elitness and for upper middle class that the huge target market though having positive perception were apprehensive to buy at tanishq

Success Factors of GoldPlus

Huge sales potential at semi-urban and rural markets Stands for Quality and trust (TATA perception) A oragnised player in a unorganised, unfragmented market- Bringing in standardization

Quality retail experience in semi-urban and rural areas: a welcome change in shopping experience Enhanced employment opportunities at these areas Aiming to build customer base and Local feeling associating to replicate the customer-local jeweler relationship Innovation in promotions, gold schemes, gold exchange offers: building loyalty

Recommendations
Tanishq and gold plus complement each other Capitalize on the points of parity of purity and quality at both ends of the customer pyramid Understand each brands market territories and characteristics Cross branding to own a larger share Intelligent synergic tie-ups for each brand according to the marketing expense Shifting frame of reference Keep only the franchisee model for GoldPlus so as to keep the local feeling New innovative low cost branding exercises for GoldPlus

Marketing mix
With already established frame of reference of purity and quality
Tanishq product price place Focus on extravagant designs and high end studded jewellery Value based pricing (premuim) Specialty stores, Online, franchises, target major citites and areas with demographics that have high intention to buy gold and are inclined to gold as fashion GoldPlus Focus on affordability, attractive packaging, New Mens segment cost leadership, credit policy in line with harvesting cycles Tier II/III cities and rural areas. Only franchisee model, display jewellery at shops in rent-cum-commission basis, online

promotion

Social media, TV, Magazines due to Innovative low cost promotion the knowledgeable target customers methods, association with the local region and celebrities, focus on women centric festivals

Targeting the appropriate market segment

Wealth/investment orientation
high

The stable

The choosy
GoldPlus Tanishq

low

The uninitiated
low

The adventures
high

Wear/ Adornment orientation

THANK YOU!