Strategic Management Project Report-2015

By- Vinu Praveen              

Gems and Jewellery Industry Analysis:Gems and Jewellery sector is an important emerging sector in the economy. It is also a leading sector for foreign exchange generation. There are two major segments; Gold and Diamonds. The current market size of the Indian Gems & Jewellery Industry is US$ 25 Billion.

In 2012, gold imports in India increased by 68% annually from 579 tons in 2011 to 970 tonnes.

The total export of Gems and Jewellery in the year April March 2013 was 302081.11 with a 3.36% growth rate and 21.27% share in the total export.

The demand for gold increased by 10% annually globally to 3,971 tons in 2012.

Gold prices continued to be erratic in the month of July 2012 and touched a high of Rs. 29,983 per 10gm. The Gems and Jewellery Industry has started to show positive signs of improvement and growth.

Indian Retail Jewellery OverviewYesterday TodayUnbranded Branded

Silver and Gold Jewellery Gold and Diamond Jewellery

Investment Investment plus Fashion

Traditional design Fashionable and innovative design

The size of the Indian Gems and Jewellery market was USD 30.1 billion in 2011 and is expected to be USD 45 billion by 2015 on the back of increasing domestic demand. The countries where demand is increasing for Indian jewellery include the UAE, the US, Russia, Singapore, Hong Kong, Latin America and China.

Tanishq  Tanishq started in 1994 and challenged the established family jewellery system prevalent in India.

They have set up production and sourcing bases with thorough research of the jewellery crafts of India. Their factory located at Hosur, Tamil Nadu (India) spreads over 135,000 sq. ft (12,500 m2).

Tanishq was launched as a range of jewellery and jewellery watches meant for the European & American markets, but later on, shifted its focus on Indian markets to tap the domestic opportunity too.

Tanishq introduced innovations like Karat meter, the only non-destructive means to check the purity of gold and machine made jewellery. In India, Tanishq has country wide presence. In November 2012, Tanishq reached a landmark when it opened its 150th showroom in India.

Today, with over 160 opulent stores in over 80 Indian cities, Tanishq continues to rule the jewellery space.

Vision and Mission Statement of Tanishq Vision: To be world class, innovative, progressive, organizations and to build India’s most desirable jewellery.Recognised and respected as an organization for excellence and trusted leadership of the jewellery industry.Financial independent.Retail skill.Ethics and Industry conducted for the Jewellery Industry. They create elevating experiences for the people they touch and significantly impact the world they work in.

Mission: Total customer orientation.Employee appreciation.Performance culture and teamwork.Creativity and innovation. Passion for excellence. Corporate Citizenship.  They will do this through spirit and a caring value driven culture, that fosters innovation drives performance and ensures the highest global standards in everything they do.

Analysis of Vision and Mission Statement of Tanishq Vision:The vision statement states that the organization will be world class, innovative and is to create India’s most appealing jewellery. They design elevating experiences for the people they aim at and primarily affects the world that they work in. Mission: The mission summarizes that it's completely customer-oriented and moreover, the organization believes in creativity and innovation and have the spirit of passion for excellence in the organization.

SWOT Analysis of TanishqStrengths: One of the most trusted jewellery brands in India.Strong backing of the Titan Industries of the Tata Group.Excellent branding and advertising through TVCs and print ad campaigns Association with celebrities as brand ambassadors to reach out to the customers.Apart from Indian jewellery in wedding and diamond collections, also offers simplistic and low-priced jewellery for daily wear.Has its presence in over 100 Indian cities.Award winning designs. Weakness: Limited global presence as compared to a few other international brand.Tough competition from other jewellery brands means limited scope of growth.While Tanishq offers wedding jewellery for various regions, there is a common misconception that the brand is more suited for North Indians and does not have a wide selection of traditional wedding jewellery for other communities.

 Opportunity: Global penetration in other countriesAcquisition of smaller businesses to increase brand position and reach.Tie-ups with corporate and business partners.Tata Group’s jewellery division, Tanishq, will open up to 25 standalone stores of its sub-brand ‘Mia’ by 2016 as it looks to grow turnover from the brand. Threats: Economic fluctuations mean people would decrease their spending.Government policies, taxes etc also affect the premium jewellery segment.Trends change quickly, hence innovations and R&D are investments.New Companies Act compelled the company to discontinue the gold schemes until they get a better understanding of the provisions to the new law.

Present Strategies of TanishqTRANSMIGRATION OF DESIGN

CONTINUOUS CHANGE IN DESIGN

OWN CHAIN OF RETAIL STORES

INTRODUCTION OF KARAT METER

RETURN GUARANTEE & EXCHANGE OFFER

STANDARDISED PRICE

ENTRY LEVEL PRICE

LINK WITH (ME)

LAUNCH OF (CSMM)

CORPORATE GOLD GIFT SCHEME

SEASONAL PROMOTION

Assessing the Present Strategies of Tanishq Tanishq has always been successful in implementing its strategies to satisfy the consumers in the market as their goal is to have a unique collection of jewellery for women and other targeted customers.

The strategies are so specific that they mostly concentrate on regions and communities and they try their best to match their needs and wants.

Moreover, they strongly maintain their loyalty status by returning particular gold jewellery and also by making an exchange offer depending on purity. In addition, they were the first ones to introduce the karat meter instrument which enables to check the purity of gold through X-rays.

Business Model of Tanishq  According to Jacob Kurian, the chief operating officer of Tanishq, this helped the company redefine its business purpose and focus."We are retailers," he says. "We design, manufacture, market and build a brand, but the primary focus is to define ourselves as retailers and create a unique proposition that consumers can relate to.” They had 27 per cent growth in revenue in 2013 and their intention to do this was by increasing outlets, merchandise, more relevant pricing, building communication. Moreover, they plan to open as many as 30 stores in this financial year. Titan in talks to buy 15% stake in Carat Lane for Rs 187 crore as per equity stake (Titan draws a majority of its revenue (about 80 per cent) from its jewellery business, Tanishq (largely through its brick and mortar stores).

Assessing the Business Model of Tanishq Tanishq’s success in the business model is due to the innovation in designs and in promotions and the valuable trust the Tata name invokes.

Designs; in the sense, they are mostly aware of the different roles played by women and so, they have made a series of specific collections that have set a new fashion in jewellery.

In fact, these are created with the Indian women in mind. Even today, they make contemporary designs of jewellery and are always making it relevant for them.

Propose a New Strategy and Fit it to a Business Model  Tanishq can adopt a strategy that can help target children easily by introducing contemporary jewellery of children’s favourite cartoon characters.  Children just love TV and especially cartoons so; they can wear ornaments of their favourite cartoon characters such as Ben 10, Tom and Jerry, Chota Bheem, Courage the Cowardly Dog and giving importance to mythological characters such as Krishna, Rama, Arjuna, etc.  In fact, Tanishq can customize a very own ‘kids section’ area which would automatically attract the young consumers. But, ornaments may not have pure gold. It'll not be more than 10 karats. This can encourage more purchases.  Another strategy, that can be implemented which involves zodiac sign pendants which is made out of their respective gem stones for example for zodiac sign cancer, the respective gem stone is Ruby and the like.

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