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BANGALORE
CONSUMER DECISION
MAKING
AND
COMPETITION ANALYSIS
(MARKETING PROJECT)
Group 3
Akshay Johri
L.B.Mahesh Bhonagiri
Mannem Nithin Kumar
Rongali Madhavi
Vysakh Murali
1 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
INTRODUCTION............................................................................................3
PRESENT STRATEGY OF TANISHQ................................................................4
JEWELLERY FOR WEDDING & WORKING CLASS........................................4
EMOTIONAL CONNECT..............................................................................4
ENVYING DESIGN......................................................................................5
FACEBOOK YOUTUBE AND TWITTER.........................................................5
RESEARCH METHODOLOGY.........................................................................6
PRIMARY RESEARCH..............................................................................6
SECONDARY RESEARCH........................................................................6
Here 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................................................................6
IN DEPTH INTERVIEW...................................................................................6
SUJITH, VP MARKETING, TANISHQ INDIA................................................6
NARESH, SUMMER INTERN IN TANISHQ (APRIL JUNE 2015).................7
CUSTOMERS AND STORE MANAGER IN TANISHQ, BILEKHALLI STORE...7
CONSUMER DECISION MAKING PROCESS....................................................8
NEED RECOGNITION..............................................................................8
INFORMATION RESEARCH......................................................................9
EVALUATION OF ALTERNATIVES...........................................................10
PURCHASE DECISIONS........................................................................12
POST PURCHASE DECISIONS...............................................................12
INFLUENCE OF TANISHQ ON THE CUSTOMER PURCHASE DECISION..........13
COMPETITIVE ANALYSIS.............................................................................13
BRAND EQUITY..........................................................................................16
NEW STRATEGY..........................................................................................17
STRATEGY RECOMMENDATIONS................................................................19
REFERENCES.............................................................................................20
2 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
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
3 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
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.
Jewellery for
Wedding &
WorkingClass
Emotional
Connect
Envying Design
&
Brand
Facebook,
Youtube
Twitter
4 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
EMOTIONAL CONNECT
Tanishq 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 DESIGN
Tanishq 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
5 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
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 RESEARCH
In 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)
6 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
SECONDARY RESEARCH
Here 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 INTERVIEW
SUJITH, VP MARKETING, TANISHQ INDIA
Tanishq 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 consumers
even after a low price slab. This mainly is due to the lack of awareness
among customers.
CUSTOMERS AND
BILEKHALLI STORE
STORE
MANAGER
IN
TANISHQ,
The main Invisible product that Tanishq is offering is the service which is
highly regarded by all customers and store managers
Customers 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.
8 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
Need
Recognitio
n
Evaluation
of
Alternative
s
Information
Research
Purchase
Decision
Post
Purchase
Behaviour
NEED RECOGNITION
Indians 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.
Only Investment
Only Fashion
As Gifts
From survey we got to know that people do buy jewellery mainly during
9 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
Gifts Investments
on
Occasions
special Days
INFORMATION RESEARCH
Nowadays 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.
Information Flow
Televison advertisement
Printed advertisments
Banners
Online reviews
10 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
Bridal collection(remarriage)
Pehla heera
Mia ads
Customers response
Some 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 Tanishq
Very happy to see a different concept, one of its kind
Portrayal of open minded society, Kudos to Tanishq, you just got a new
fan follower
A social commitment makes people to love you and Tanishq has shown
its true class
EVALUATION OF ALTERNATIVES
Customer 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
11 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
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.
Customer Service; 9%
Design Only; 26%
Purity and Resale Value; 11%
Quality certifications; 5%
Brand & Price; 49%
Design Only
Quality certifications
Customer Service
This is a positive sign for the Tanishq brand as their main strength lies in
the design and brand equity that they possess.
15%
33%
6%
20%
15%
Tanishq
Asmi
Joy Alukaas
Kalyan Jewllers
Reliance Jewellers
Others
12 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
28%
46%
21%
Expensive
Normal range
Cheap
PURCHASE DECISIONS
After 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.
13 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
8%
25%
19%
48%
2%
44%
38%
Always
First timer
Location of store
Brand Loyality
Sometimes
Never
Good Service
Random
14 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
8%
25%
48%
Excellent
Very good
Average
9%
6%
20%
52%
Excellent
Good
Average
No comments
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
PURCHASE DECISION
ON
THE
15 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
CUSTOMER
COMPETITIVE ANALYSIS
Jewellery 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.
16 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
BRAND
FASHION
BRIDAL
LAUNCHED
ASMI
GDivas
Asmi Collection
2002
Nakshatra
Diva
Nakshatra Wedding
2000
Ddmas
Tanhaiya
Ddamas Bridal
1996
Kalyan
Jewellers
Amore/ Floret
Sankalp/ antaro
1993
Joyallukas
Apurva/Veda
1987
17 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
18 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
BRAND EQUITY
Tanishq is having a brand name of TATA, which helps them to maintain a
standard price for all their products.
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 category
Esteem: 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
20 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
Promotion:
21 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
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
22 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
Concentrate
more in south
India
Increase the
awareness of
Mia
Identify
Budget range
of customers
Standardise
the customer
service
quality
23 | C o n s u m e r B e h a v i o u r o f Ta n i s h q
REFERENCES
1. http://www.socialsamosa.com/2013/08/social-media-strategy-reviewTanishq/
2. http://www.campaignindia.in/Video/392175,we-are-ready-for-all-typesof-weddings-says-Tanishq.aspx
3. http://articles.economictimes.indiatimes.com/2015-0506/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-tostrengthen-foothold-in-south-market/
6. http://young-rubicam.de/tools-wissen/tools/brandasset-valuator/?
lang=en
7. Tanishq website
24 | C o n s u m e r B e h a v i o u r o f Ta n i s h q