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Tanishq

Titan is considering launching a new lower-priced jewelry brand called Gold+ to target the large semi-urban and rural markets in India. Gold+ would focus on plain gold jewelry, which makes up 80% of the overall jewelry market. It would be aimed at more affordable design and pricing compared to the existing upscale Tanishq brand. However, there are risks such as potential cannibalization of Tanishq sales, difficulty maintaining quality and brand image differences across the two brands. A careful branding and retail strategy would be needed to successfully launch Gold+ without negatively impacting the Tanishq brand.

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Isabella Styles
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135 views19 pages

Tanishq

Titan is considering launching a new lower-priced jewelry brand called Gold+ to target the large semi-urban and rural markets in India. Gold+ would focus on plain gold jewelry, which makes up 80% of the overall jewelry market. It would be aimed at more affordable design and pricing compared to the existing upscale Tanishq brand. However, there are risks such as potential cannibalization of Tanishq sales, difficulty maintaining quality and brand image differences across the two brands. A careful branding and retail strategy would be needed to successfully launch Gold+ without negatively impacting the Tanishq brand.

Uploaded by

Isabella Styles
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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TANISHQ

OR
GOLD+

GROUP 1
PROTAGONIST 
C K Venkatraman Bhaskar Bhat
(Head of Tanishq) (Managing Director, Titan)

OTHER PLAYERS
Manoj Chakravarti, (Titan Govind Raj Mr. L. R. Natarajan
VP) (Tanishq VP) (VP of integrated supply
chain management
for Tanishq)
COMPETITORS
• TITAN WAS INCORPORATED IN 1984 AS A JOINT VENTURE
BETWEEN THE TATA GROUP AND TAMIL NADU INDUSTRIAL
CORPORATION (TIDCO) 
• THE INDIAN GOLD JEWELRY MARKET WAS ESTIMATED AT
RS.60,000 CRORES ANNUALLY.
• TANISHQ FACED LOCAL COMPETITORS THAT WERE BIGGER
THAN TANISHQ LOCALLY
FACT • THERE WERE OVER 25,000 FAMILY-OWNED INDEPENDENT
JEWELERS
S • AT THE BACK END OF THE SUPPLY CHAIN WAS A GROUP OF
OVER 3 MILLION CRAFTSMEN OR KARIGARS
• KARIGARS TYPICALLY RECEIVED RS.30 PER GRAM OF GOLD
FOR WORK, WITH THE BEST KARIGARS RECEIVING UP TO
RS.40 PER GRAM.
• TITAN SHIFTED ITS ATTENTION TO THE DOMESTIC JEWELRY
MARKET IN 1995
  
• IN 1996 TITAN MANAGEMENT DECIDED TO MANUFACTURE
AND MARKET PRECIOUS STUDDED JEWELRY UNDER THE
TANISHQ BRAND
• IN JULY 1996, TANISHQ OPENED ITS FIRST BOUTIQUE
IN CHENNAI.
• UNDER-KARATAGE WAS AN INDUSTRY-WIDE PROBLEM
• OVER 5,000 WOMEN CHECKED THEIR JEWELRY WITH
OVER 60% FINDING THEIR PIECES TO BE UNDER-
KARATAGE
FACTS  • BY 2000, TANISHQ HAD FINALLY ESTABLISHED A
BEACHHEAD IN THE 22-KARAT GOLD JEWELRY
•  MARKET AND HAD HIT THE RS.100 CRORES MARK AS A
BRAND
• TANISHQ’S MARKUP FOR GOLD WAS 15% TO 25%
• LOCAL JEWELERS’ MARK-UP WAS 5% TO 15%
• FROM 1996-2000, DISPOSABLE INCOME IN INDIA WAS
QUITE LOW, WITH ABOUT 60% GOING TO HOUSEHOLD
EXPENSES AND 30% TO 40% GOING TO SAVINGS
THE GOLD+ PROPOSAL

• IN MID-2004, MR. L. R. NATARAJAN (WHO WENT BY LRN), VP


OF INTEGRATED SUPPLY CHAIN MANAGEMENT FOR
TANISHQ, PROPOSED THE COMPANY GO AFTER A SEGMENT
THAT TANISHQ WAS NOT SERVING.
• THE SEMI-URBAN/RURAL MARKET IS OVER RS.36,000 CRORES
FACTS  • THE TRADITIONAL PLAIN GOLD JEWELRY SEGMENT IS
AROUND 80% OF THE OVERALL MARKET
• FRANCHISEES PAID THE STORES’ FIXED COST: FOR THE 2,000
SQUARE FOOT ERODE STORE THESE WERE ABOUT RS.75
LAKH; FOR RATLAM, ABOUT RS.38 LAKH
• FRANCHISEES INCURRED MONTHLY OPERATING COSTS,
EXPECTED TO BE ABOUT RS.2 LAKH IN ERODE AND RS.1.3
LAKH IN RATLAM.
Consumption & Value
WHO BUYS
GOLD IN
INDIA?
&
FACTORS
TANISH VS
BCG BCG
MATRIX MATRIX
TATA TITAN
TITAN OR TANISHQ
ALTERNATIVES
Strengths Weakness

• Will circumvent Tanish's perception of • Expansion will increase the tax rate from
a brand meant only for the rich 2% to 6% 
• Would be focused on just gold, which is • No market study conducted to check if
80% of the jewellery market the model will work for North India
•  Design  and sell gold jewellery at
competitive pricing SWOT
Opportunities Threats 
LAUNCHING
• Will have an opportunity to target semi
urban and rural market of over Rs.
• Stiff competition from local
individual and familiar jewellers
GOLD+
36000 crores • New players may also enter the market
• The success in Erode and Ratlam could • Chance of cannibalizing Tanishq's sales
be replicated in the rest of South India.
Strengths Weakness

• Strong backing from  the TATA group  • Negative brand perception – The brand
• Innovative and modern award-winning is only for "Rich"
styles • Limited Global presence as compared to
• The advertising strategy to target wider international brands
audience • Tough competition from their
• Caters to all market segments with competitors – Resulting in limited brand
different sub brands growth

Opportunities Threats  SWOT


• Opportunity to expand in men's jewelry
segment to expand business line
• Competition from existing traditional
jewelers 
TANISHQ
• Tie ups with different market leaders • Effect of (PESTLE) on the price of gold
and strategic business partners making the business difficult to operate
• Cross branding products as they have a • Changing gold trends and designs
larger market share effecting the businesss
• Acquire smaller businesses to better
postion the poduct in the market
Y
DIFFERENCE BETWEEN
GOLD+ & TANISHQ
• TRUST :  India Tata’s brand image has been paramount in the Indian market and customers have formed a
quality trust with the same. Gold+ and Tanishq, although being from the same parent would differ in quality would to
their intended target segments. In areas of less awareness, the Gold+ brand can potentially dilute the “trust” people
have in Tata as they would subconsciously assume it to be of superior quality

• CANNIBALIZING SALES :  Company had to be careful in retailing the Gold+ brand,


there should not have been any mixing of the two brands in the same store, the Gold+ stores should have been separate
and the store ambience should click to the minds of the target segment

• QUALITY COMPROMISE :  Gold+, being a low-end brand would stand out contrasted
in terms of quality when compared with the high end Tanishq products
DIFFERENCE BETWEEN
GOLD+ & TANISHQ
• LOOK AND AESTHETIC : Gold+ aimed at ethnic design low-cost jewelry while Tanishq
catered to an urban and premium look

• LOCATION : While Tanishq would have to its retail locations across the major
metropolitan areas and its immediate suburbs, Gold+ aimed at setting up its retail chain
across 83 towns, majority of which would be the tier 2 towns

• TAXATION IF GOLD+ NATIONAL BRAND :   As Gold+ becomes as national brand and


the number of retail outlets go above 20, it will fall under the taxable category, incurring a
2% income tax, which had been projected to grow to 6%.
WHY TANISHQ & NOT GOLD+
Go With Gold+ : Fool's Gold

Tanishq – Stronger Than Diamond

Thank You

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