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Tanishq: Positioning to Capture theIndian Womans Heart

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Indias Gold Jewelry Industry

Indian gold jewelry market $12 Billion

Indian wedding jewelry - 70% of jewelry

market

Wedding trousseau consisting of at least 5pieces ~ $7500 (2008 Gold Price) where per

capita income was ~ $1,089

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Indias Annual Gold Consumption

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The Rising Price ofGold

http://kitco.com/

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The start

Pvt. Label supplier in Europe

Capture wedding gift market jewelry that

tells time

Entry into domestic market: 18 carat studded

jewelry

High awareness, low conversion

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Internal

Capital Flexibility

Innovative

Modern Style

Excellent & outstandingadvertisement strategy

Not for me

Gold Purchase Rituals

Gold Perceptive

TATA Support

The Wedding Market

Globalization

GoldPlus

Local Jewellers

GovernmentRegulations

Extern

al

Tanishq SWOT Analysis

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Internal

Marketing Strategy TATA Support

Traditions & Values

Limited Outlets

More Outlets

The Rural Market Tanishq

Government

Regulations

Design StealersExtern

al

Gold Plus SWOT Analysis

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Problem Analysis

Heavy Competition

Failure of Gold watches

Failure to tap wedding Market

Not for Me perception

Internal conflicts between Tanishq and GoldPlus

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Challenges

Yr. 2000 marked fifth consecutive business loss

Low making charge of local mfg. by compromising

quality

Poor inventory management Poor delivery alignment in order & indent

Changing customer preferences

Non moving stock (sludge)

Physical verification of inventory

Excise duty on branded jewelry eating into margins

Pricing challenges

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Strategies for market growth

Jewelry division as separate SBU with COO,

marketing, etc

Rationalize frequency of launching new design

Capabilities created to cater need for marketingmade to order segment

Commodity marketed as a premium product

Launch of few new product every month creatingnew stories

Local designer for regional market

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Successful Strategies

Complete positioning

Managing competition

Introduction of studded Jewelry (marginenhancement)

Very high promotion sponsoring Miss

India pageant, Paheli collection, etc

Pioneering the Karatmeter

Elimination of traditional middlemen

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Jewelers Tanishq

Vendor or Middlemen Head Karigars

Head Karigars Unorganized Karigars

Unorganized Karigars

Traditional system Vs. Tanishq system

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Gold Consumer Market Segmentation

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Successful Strategies

Revamping internal supply chain

Reduced inventory

Range of design

Responsive business close proximity of

Karigar parks and manufacturing plant

Web based GOLD MINE was implemented to

connect boutique, CFAs & factory

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Total sales ofTanishq from 1998-2007:

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Going forward Questions to ask

Is cannibalization really an issue?

Can GoldPlus compete with the local wedding

jeweler?

How will Gold Plus fuel growth given base gold

price escalations?

Future competition?

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Going forward

Tanishq & GoldPlus, compliment each other

High end value game vs. low margin volume play

Understand their market territories & characteristics

Capitalize their strengths

Cross Branding the market to own a larger share

Explore other global markets

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Thank you