Tanishq: Positioning to capture the Indian Woman’s Heart

Submitted by- Shivani Shajan (26148)

Industry Overview:

India is the largest consumer of gold in the world to be followed by China and Japan. As of February 2021, India’s
gold and diamond trade contributed ~7.5% to India’s Gross Domestic Product (GDP) and 14% to India’s total
merchandise exports. The gem and jewellery sector is likely to employ ~8.23 million persons by 2022, from ~5
million in 2020. In FY21, exports of gems & jewellery stood at US$ 25.30 billion. In September 2020, the US was
the largest country (at 44%) to import gems and jewellery (US$ 938.54 million) from India, followed by Hong Kong
(~33%) and the UAE (~13%). In May 2021, India imported gems & jewellery worth US$ 1,716.64 million compared
with US$ 316.48 million in May 2020.

Company Overview

● Tanishq- TATA Group- subsidiary of Titan Industries ltd in collaboration with TIDCO
● Titan, promoted jointly by Questar Investments Ltd, was started in technical collaboration with France
Ebauches with a 25% share of the total domestic market. It was renamed Titan Industries LTD in 1995.
● Constitutes 6 brands- Tanishq, Gold Plus, Zoya, Miya, Diva and Aria
SWOT Analysis
Strengths
● A trusted jewelry brand in India- backing of TATA Group and TN Government- High brand recall-
● Widespread geographical presence- Tanishq has a store presence in more than 100 cities in India.
Considered a national brand
● Right Product Mix- deals in simple, low-priced, daily wear jewelry products along with wedding and
diamond collections
● Excellent promotional activities – There have been a lot of advertising and promotions for the brand in
terms of TV ads, hoarding, promotional offers. High brand value and awareness.
● Quality offered is high- they have introduced carat metres which customers can use to identify the
pureness of the gold/diamond jewellery. Increased trust.
● Endorsement by famous celebrities–Amitabh Bachchan, Jaya Bachchan, Deepika Padukone and much
more are the likes of celebrities this brand has got it associated with for endorsement. Increase Brand
association
Weakness
● Limited international presence – Tanishq has a very limited international presence as compared to
some of the international brands in the jewelry arena.
● The limited scope of growth due to fierce competition – A large number of regionalized competitors
in India does not allow a fast-paced growth in the market.
● Initial negative perception of the brand being for rich only – The earlier perception that Tanishq
caters only to the rich people was a major setback for the brand.
Opportunities
● Expand globally – This is a huge opportunity for Tanishq which will help in increasing the reach,
revenues, and profits if they can successfully expand themselves globally.
● Improve growth rate and profitability– Jewellery market is volatile due to increased regional players.
The brand should come up with strategy to overcome this.
● Indian wedding market is a big opportunity
Threats
● Strong competition from both branded and traditional jewelers-
● Gold is not seen as an investment anymore- changing traditional mindset among the millennials
poses a threat
● Dynamic fashion trends – Fashion trends are always in a change mode which needs to be met on
almost daily basis.
● Escalating gold rates makes it difficult for Tanishq to have the consistent profit margin
● Changes in government policies and taxes for the items in luxury bracket.
● Increasing rates of interest
 VRIO Analysis
Features/Resources Value Rarity Inimitable Organization Recommendations

Brand Investment Yes Yes No Temporary

competitive
advantage

Extensive delivery Yes No Competitive parity

network

Propensity for Yes Yes No Yes Temporary

innovation competitive
(Marketing, Product advantage
offerings)

Global presence No Competitive

disadvantage
Product offering Yes Yes No Temporary
competitive
advantage

High brand Yes Yes No Yes Strong

equity and recall competitive
advantage

Growing Yes No Competitive

portfolio of parity
products

Growing brick Yes No Competitive

and mortar parity
presence

High strategic Yes Yes Yes Yes Sustained

positioning competitive
advantage
Porter’s Five Force Analysis
Threat of substitute:
● Switching to other investment options
● Preference for imitation jewellery
● Rental jewellery availability
Threat of new entrants:
● Presence of regional players
● Launch of Goldplus brand by Titan
● New competitors foray in high class
jewellery market
Bargaining power of suppliers:
● Karigars are controlled by a group of vendors
● Vendors’ own inventory
● Low bargaining power of suppliers- There are
lot of suppliers in this industry
Bargaining power of buyers:
● Low bargaining power of buyers
● Choice of regional jewellery
● Knowledge of making charges, gold price
and wastage
Competitor Rivalry:
● Competition among the existing players is
high due to the presence of local jewellers
who are willing to give promotional offers