INDIAN INSTITUTE OF MANAGEMENTBANGALORE

CONSUMER DECISION MAKING AND COMPETITION ANALYSIS(MARKETING PROJECT)

Group 3Akshay JohriL.B.Mahesh Bhonagiri Mannem Nithin KumarRongali MadhaviVysakh Murali

INTRODUCTION3PRESENT STRATEGY OF TANISHQ4JEWELLERY FOR WEDDING & WORKING CLASS4EMOTIONAL CONNECT4ENVYING DESIGN5FACEBOOK YOUTUBE AND TWITTER5RESEARCH METHODOLOGY6PRIMARY RESEARCH6SECONDARY RESEARCH6Here secondary research is through Tanishq case study, newspaper articles, company websites and other review sites. Through this we got a rough idea about the present scenario and who company is putting forward its strategies.6IN DEPTH INTERVIEW6SUJITH, VP MARKETING, TANISHQ INDIA6NARESH, SUMMER INTERN IN TANISHQ (APRIL JUNE 2015)7CUSTOMERS AND STORE MANAGER IN TANISHQ, BILEKHALLI STORE7CONSUMER DECISION MAKING PROCESS8NEED RECOGNITION8INFORMATION RESEARCH9EVALUATION OF ALTERNATIVES10PURCHASE DECISIONS12POST PURCHASE DECISIONS12INFLUENCE OF TANISHQ ON THE CUSTOMER PURCHASE DECISION13COMPETITIVE ANALYSIS13BRAND EQUITY16NEW STRATEGY17STRATEGY RECOMMENDATIONS19REFERENCES20

INTRODUCTION

Project Phase 1: In this phase we started with an Industry analysis, where we explored how the Jewellery and Gems market is faring in India. India being one of the largest consumer of gold in the world, the market is soaring high at a rate of 15.9% and is expected to grow in the coming years. We performed a Porters 5 force analysis to know more about the nitty gritty of the market. From the value proposition analysis, it was evident that Tanishq, with TATA trust showed no lapse in the quality, purity check and unique design. Tanishq brought about Karatmeter to check the purity of gold, a first of its kind. Tanishq contributes 70% of Titan sales, which comes around 9000cr. As far as Business model is concerned price is mainly derived from making charges and the profit earned on the gold charges. We also came to know that Tanishq major target market are higher and upper middle class.Later we concentrated on Value Chain Analysis, where Tanishqs Value chain was divided into primary and secondary activities. Raw material, gold is sourced from international and national market and integrated in Hosur unit, where CAD technology is used for designing and are moved to store by agents. Tanishq targets progressive women through traditional design connect. Tanishq strives for better customer connect through their 174 stores. In this phase we got to know the Revenue model and Value proposition of Tanishq Project Phase 2: In this phase our objective was to do the STP profiling of Tanishq. Tanishq with 174 stores is considered to be the largest jewellery store. Through our primary research (Survey) and secondary research we found out that Tanishq segmented the market mainly into 4.In geographical segmentation, the wedding collection is divided based on the taste of different states of India. In demographic segmentation they again divided the market based on Age, gender, occupation, Income, marital status and introduced different product line to satisfy each and every customer. Tanishq noticing a niche working women market which constituted 40% of women class, introduced new Mia collection. Based on occasion they provided a Bridal collection in a varied price range and design.Tanishq mainly targeted urban market with main focus on bridal collection for different region with respective designs. It tried to bring the working women class into their fold and portrayed the same through their advertisements. For this they launched new collection and created sub brands in due course. In order to accommodate the middle class they provided low cost jewellery starting from Rs6000. Tanishq positioned the diamond jewellery segment as one which is affordable, true and elegant diamonds. In gold segment, they positioned itself as everyday jewellery for working women, one which makes you to marry, beautiful gold for beautiful people.Through our survey we got to know that a large chunk of consumers know about the different bridal collections of Tanishq and revealed that they are having one of the best designs. In the same set of customers, many are unaware of the low cost jewellery that Tanishq is offering though they did revealed that they are aware of the Mia, working women collection. By completing the 2nd phase of the project we got to know about Tanishq target population and how products are segmented. PRESENT STRATEGY OF TANISHQ

Tanishq which was established in 1995, became the largest and desirable brand within a span of ten years shows that they were always connected to customers and changed their strategies according to the need of the consumers. Tanishq always provided the right range of products for different markets at any point of time. Tanishq started as a premium brand, but in due course of time it tried to position itself as an answer to the upper and upper middle class jewellery lovers. At present the main strategies that they are following are JEWELLERY FOR WEDDING & WORKING CLASSBridal collections of Tanishq is something that is unmatched. With Indian wedding remaining as one which provides a platform to showcase the jewellery studded power, Tanishq has carefully laid down itself as the stop end shop for wedding collection with various regional scintillating designs. With almost 15 regional varieties of design, Tanishq satisfies majority of Indian weddings.Tanishq after careful research found out that working class women jewellery was one which was unattended. Working class women constitutes about 40% of the total women class and in order tap this niche market introduced various brands and sub brands. In order to accommodate middle and upper middle class Tanishq is providing these jewellery with price range as low as Rs.6000.EMOTIONAL CONNECTTanishq used emotional and unorthodox advertisement to garner the attention of the masses. For wedding collections, they used the not so prominent remarriage concept to show that Tanishq bridal collection is for all. At the same time they showcased different wedding of north Indian and south Indian choosing the same Tanishq Wedding brands. In this they carefully made a tagline which quotes hum kisi bhi shaadi key liye tayaar hain, and positioned itself as a pan India collection.

ENVYING DESIGNTanishq always was the front runner in terms of design. From the previous survey itself consumers consider it as the most innovative in the design. Tanishqs design team itself is composed of varied specialist designers which is composed of 28 specialist designers. The unique design store which they are having helps then to come up with best designs frequently

FACEBOOK YOUTUBE AND TWITTERAs Tanishq is having Aspiration to Own built in its product range and with Tanishq entry into Facebook and Twitter is making its customers engaged. With a strong brand conscious and new design seeker group being the main customers of Tanishq, the social media is the perfect platform to connect with their loyal followers. With the Tanishq ad creating a roar in YouTube, rest is assured that people who love design and follow new varieties are in love with these products.

RESEARCH METHODOLOGY

By this we are trying to get the consumer behaviour in buying the Tanishq jewellery and trying to find out whether the marketing strategy of Tanishq is aiding their business. Through this research we are trying to gauge the presence of brands among consumers and how it is positioned in their minds. Indirectly it will also shows the consumers pulse and patterns when buying a jewellery.PRIMARY RESEARCHIn this primary research we conducted 1) Survey: It was done to collect data on consumer preference and perception towards Tanishq. Using this we can check the varied strategies and comment upon the new 2) In depth Interview a) Sujith, VP of Marketing (Telephonic Interview)b) Naresh, Internship in Tanishq (Face to face interview)c) Subramanian, CFO (email) d) Customers in Tanishq store (Face to face interview)SECONDARY RESEARCHHere secondary research is through Tanishq case study, newspaper articles, company websites and other review sites. Through this we got a rough idea about the present scenario and who company is putting forward its strategies.

IN DEPTH INTERVIEWSUJITH, VP MARKETING, TANISHQ INDIATanishq which is the largest branded jewellery player is considered to be a pan India player and equally concentrates on all the regions. Tanishq is having higher sales of diamonds in north India and have better sales of gold in south India. Due to the higher urge for gold in south India Tanishq has positioned itself as a saviour of wedding jewellery woes for all regions. The bridal collection constitutes the highest factor in the sales of Tanishq, and in order to strengthen their position in this segment they provide region based design and now have almost 12 varieties of regional state based design. Tanishq uses crowd sourcing method to get to know the new design which customer wants.The brand TATA works really in our favour and people always relate Tanishq as something which is trustworthy and loyal. For the same Tanishq provide 100% pure gold and use Karatmeter to test its purity. The differentiation strategy which Tanishq is trying to adopt is the exchange policy which no other brands are trying to offer. This signifies the trust that Tanishq is having is showing it to the consumersNARESH, SUMMER INTERN IN TANISHQ (APRIL JUNE 2015)Based on the interactive chat that we had with Naresh, we came to know that Tanishq uses less inventory in their stores. Their main idea here is to increase the ROI and fully use up the inventory. Tanishq has now started to offer silver jewellery apart from the gold, platinum and diamond. Tanishq now found that there is a demand for silver jewellery mainly in northern states of India and will now try to capture this unorganised market. Now Tanishq is offering Loyality cards for Tanishq stores with the aim to enhance the brand loyalty. By this card Tanishq will give discounts for frequent visitors. Royale Annutara is another loyalty program which Tanishq is running. Now they have added two new tiers and increased the volume of users. Gold harvest savings scheme and Gold plus for middle class are other new features which Tanishq is coming up with. Miya brand based on competition is sold outside retailer. Miya, which is the jewellery for working women has not shown a high increase in sales even after a low price slab. This mainly is due to the lack of awareness among customers.

CUSTOMERS AND STORE MANAGER IN TANISHQ, BILEKHALLI STORE

The main Invisible product that Tanishq is offering is the service which is highly regarded by all customers and store managersCustomers purpose of buying gold varies from investment to gifting and daily use. Majority of the customers who purchase from Tanishq has a sole reason in mind which is nothing but the trust on jewellery quality and its resale value. The after sale service which Tanishq provide is unmatchable. Customers trust Tanishq and their view is strengthened by the Karatmeter which is available in the stores. The service that Tanishq provides is unmatchable and they get a feeling the product. Though its the gold that they are buying, but its the Tanishq service and brand which makes the customers more addicted to Tanishq. Unlike other players here there is a heavy concentration on Service part.

CONSUMER DECISION MAKING PROCESS

NEED RECOGNITIONIndians are obsessed with gold and jewellery. Nowadays there is a high focus on buying jewellery for investment and fashion rather than just for the status symbol. Soaring price of gold jewellery has aided the need for investment in gold. Now from our survey we found out that a major chunk of the population ie 66% buy jewellery for investment and fashion, while only 10% of the sample population considers jewellery as a purpose of fashion. Interestingly 20% of the population considers gold only for investment.

From survey we got to know that people do buy jewellery mainly during

1) Occasions mainly are Birthdays, Marriages, Anniversaries, Akshayatritiya, Dhanteras2) Gifts on special Days are Rakhi, Valentine and mothers days3) Investments: When gold price is low people purchase jewellers which serves both the purposeINFORMATION RESEARCHNowadays in this high paced environment getting information is just a matter of minutes, and people do a lot of research before even making an intention to buy. The main source from where they fetch information are television ads, peer groups, family, printed advertisements and previous experience.

Tanishq mainly does it campaign and promotions through Television advertisements and now a days even through social media connect.

DIFFERENT APPROACH: AN ANOMALYDuring our interview with store manager we found out that Tanishq though active in ads there main customers (high end section) are not using ads to evaluate Tanishq. The marketing technique there is nothing but word of mouth. Once these high end customers use Tanishq products then there is no going back for them and will stay and remain loyal to them. So here again service, brand and design captures the attention and rather these are spread through word of mouth rather than ads

Customers responseSome of the comments received about the sensational Tanishq bridal remarriage ad.Social message is strong, associate the Tanishq brand very well Makes a lot of sense seeing the ad will definitely go and buy TanishqVery happy to see a different concept, one of its kindPortrayal of open minded society, Kudos to Tanishq, you just got a new fan followerA social commitment makes people to love you and Tanishq has shown its true class

EVALUATION OF ALTERNATIVESCustomer is always the king and it is the customer who evaluates the alternatives for the purchase of the jewellery. The decision that a customer takes is mainly based on many factors of which price, design and brand play a huge role. Mainly the population which we surveyed takes branded jewellery. Usually there would be an evaluation criteria where they decide to buy from branded or unbranded jewellery. From this survey we got to know that Brand, Price and design plays the most pivotal role while selecting a jewellery.

This is a positive sign for the Tanishq brand as their main strength lies in the design and brand equity that they possess.

Consumers consider Tanishq products as an expensive range. But what is more interesting here is that 28% of the consumers also consider Tanishq as something which gives value for money. This results shows that Tanishqs design and purity are really taken heart by people. From people whom we surveyed we got to know that most favoured brand is Tanishq followed by Joy Alukkas and Asmi. There are many new players in this market who are trying to take the market which people have identified, like kalyan, josco, Reliance.

PURCHASE DECISIONSAfter evaluating all alternatives, customers will come to a conclusion where to buy the preferred jewellery from. It is in this stage that customers finally make up his mind to take one. Based on our survey we found that 25% of people were brand loyals to Tanishq which is mainly due to their design. We also got to know that 19 % of people preferred Tanishq based on occasions.

From this we know that people do consider location of store as a main criteria. But if youre a brand loyal it makes you to visit the store irrespective of its position. So here Tanishq is having an advantage as the store locations are situated in the prime positions in the respective cities. From the previous data the brand loyalty factor will help Tanishq to get in more consumers.POST PURCHASE DECISIONS

This survey showed us that consumers are really happy after the purchase. Out of the consumers who bought from Tanishq more than 70% of the customers are happy. This means that the product that Tanishq provides meet the expectation of Tanishq. Now Tanishq has also started return back policy where one can exchange the gold bought from Tanishq within prescribed time and will get back the full amount. The after sales service which include polishing and cleaning of jewel along with return back policy is considered good by majority of the population. INFLUENCE OF TANISHQ ON THE CUSTOMER PURCHASE DECISION

1) Occasion specific advertisements and offers. Social media promotions e.g. Discount offers and personal invitations during Dhanteras, and Akshaya Tritiya. Mothers day ads by celebrities. 2) They reach customers through door-to-door campaigning, community level advertising and emailing for specific apartments in the vicinity. They do telecalling and have a referral program to reach out specific customers. 3) Tanishq offers very unique designs with smooth finish, made by highly professional designers. They have Karatmeter to check the purity of gold, and the composition of any jewellery, assuring the customers about the purity of the gold. 4) Tanishq has wide range of store network in all the metro cities, connecting to maximum customer reach. 5) Tanishq offers equal importance to after sale services, despite, it generates the least or almost nil revenue from the customer.6) Differentiation in service: Store person handling Kids of customers, providing refreshments, persuasiveness of the sales man, in depth product details like composition, shown to the customers on computer screen

COMPETITIVE ANALYSISJewellery market in India is moving towards the branded sector, with a growth of 30% every year. Although Tanishq is the market leader in this branded jewellery sector, it is also facing stiff competition from the other branded jewellers. Tanishq has to build a strong case, both rationally and emotionally, to address these changes. After two successful campaigns of affordable Tanishq and a new wedding-collection, the customer base of Tanishq increased considerably. They have launched a similar kind of advertisements with taglines gift your mom, Gift a moment, which also increased its reachability to most parts of India. Tanishq aims at leaving a powerful impact on customers through its campaigns and commercials, may it be about Remarriage or Mia. This resulted in growth and expansion in both revenue and market share over the last few years. However the government regulations, global jewellery prices and market competition will continue to have an effect on the companys sales and balance sheet. The changing customer tastes, growing competition in the market and retaining of older customers are the major challenges to be addressed currently with good marketing strategy.

BRANDFASHIONBRIDALLAUNCHED

ASMIGDivasAsmi Collection2002

NakshatraDivaNakshatra Wedding2000

Ddmas TanhaiyaDdamas Bridal1996

Kalyan Jewellers Amore/ FloretSankalp/ antaro1993

JoyallukasLil Joy/ AkshayaApurva/Veda1987

Fig: Brand preference in branded jewellery market

Fig: Perpetual map for Light -weight Jewellery in IndiaAs per the survey, people tend to consider lightweight products of Tanishq are more fashionable also have the highest value for money among the trusted branded jewellers. This is followed by Kalyan Jewellers and Joyalukkas. Asmi was perceived to be marginally not fashionable and also on the expensive side. This survey, shows that these branded jewellery is expensive, but provide them with more fashionable options, than the un-branded jewellery.

Fig: Perpetual map of Bridal Jewellery in IndiaThis perceptual map displayed above is constructed based on the two critical parameters for bridal jewelry, Price and Trend. Bridal collection from Tanishq was considered to be trendy but also on the expensive side. This is followed by the Joyalukkas and then Kalyan jewellers. Kalyan jewellers is considered to give the most value for money.

BRAND EQUITYTanishq is having a brand name of TATA, which helps them to maintain a standard price for all their products.

Here from this Brand Asset Evaluator of Tanishq brandEnergized Differentiation: From this we can get the Brands point of difference. Here the main differentiating factor is that it is a reliable TATA brand and its design is one of the best, catchy.Relevance: So from this we can know that a person who needs stylish look, and who are working people who need light weight jewellery fall into this Tanishq categoryEsteem: Tanishq introduced the Karatmeter, which checks the purity. So the perception about Tanishq is that which is having high quality and loyalty.Knowledge: The awareness about the new products (Mia) of Tanishq is little less. But consumers are aware about bridal wedding collections Tanishq falls into the Leadership part which gives them more options.

NEW STRATEGY

4Ps of Marketing

Product: Tanishq re-launched its wedding collection with more designs, specifically designed to the ethnics of the culture and traditions of different regions of India. Some of the collections include, Andhra, Tamil, Kannadika, Marwadi, Punjabi bridal collections etc. It recently launched, Farah Khan collection. The designs are inspired by the mughals jeweler arts. Rubies, Quartz, crystals, etc are used to make these ornaments. Intricately designed ear-cuffs, in between finger rings that gracefully wrap themselves between the fingers, are some of the models of this collection. Other collections: Zoya diamond collection, Mia light weight collection, Inara Diamond collection and aurum collection are the latest types of Tanishqs collection. Price: Because of the wide range of products, the price range is also wide. The online jeweller store price range starts from Rs. 4000/-, while the offline store starts from Rs. 20,000/-. The wedding collection range starts from Rs. 1.5 lakh. It is also known to give plenty of discounts through the year. They give an annual discount of 25% on their diamond jewellery and a 20% discount on their gold jewellery. These discounts are a very innovative tactic to get customers to enter the store to see the collections and in the process show them how the items not on discount are also very affordable. The designer jewellery is priced according with the depth and complexity of the designs. The durability, quality assurance, and the brand value of Tanishq added to the pricing component.

Promotion: Tanishq is heavily promoting its new collections across its all branches. Every branch has the collection of latest trends and they are heavily promoting their brand value by promoting their website. They made sure every information is readily available on website, so that a customer can go through the website and models he wanted to purchase, before he personally visit the store. Thus, Tanishq not only promoting its brand value, but also promoting its customer service, which is already the best among the branded jewellery market as per survey. They reach customers through door-to-door campaigning, community level advertising and emailing for specific apartments in the vicinity. They do tele-calling and have a referral program to reach out specific customers. Place: Tanishq has wide range of store network in all the metro cities, connecting to maximum customer reach. It has its spread across 200+ Stores, across 90+ cities. Each store is very well equipped with Karatmeter, Gold shape moulder, weight checker, and computer screen at every sitting counter.

STRATEGY RECOMMENDATIONS

From our survey and interview we found out thatSouth Indians prefer jewellery with more amount of Gold percent, whereas North Indians prefer to have blended or studded jewellery. ROI will be higher in case of South based customer, and hence Tanishq should concentrate more on South Indian market and position themselves accordingly.As per survey, there is variation in the offered customer service across different branches of Tanishq. Customers visit specific branches only because of this factor. Hence, Tanishq should standardize the customer service quality across all its branches. Creating awareness of Mia collection as well as other new collections to the customers visiting the stores. Identifying the budget range of the customers which is in maximum demand and have adequate/more inventory to meet the customer requirements. This will improve the conversion ratio.

REFERENCES

1. http://www.socialsamosa.com/2013/08/social-media-strategy-review-Tanishq/

2. http://www.campaignindia.in/Video/392175,we-are-ready-for-all-types-of-weddings-says-Tanishq.aspx

3. http://articles.economictimes.indiatimes.com/2015-05-06/news/61865127_1_kalyan-jewellers-Tanishq-ramesh-kalyanaraman

4. https://www.facebook.com/BrandEquity/posts/586501851405199

5. http://www.bestmediainfo.com/2015/05/Tanishq-goes-the-soap-way-to-strengthen-foothold-in-south-market/

6. http://young-rubicam.de/tools-wissen/tools/brandasset-valuator/?lang=en

7. Tanishq website

10 | Consumer Behaviour of Tanishq