A Case Study analysis of

Group No:1
Nikhil Rangari-1702118 Ashish Yadav-1702042
Vineet Pawar- 1702220 Aditya Krishna-1702008
 The need for the TATA GoldPlus to cater the rural market

1 2 3 4 5

Indian market is the largest
consumer of gold in the
world
Gold demand in India rose
11 per cent year-on-year to
737.5 tones in 2017
The gold purchasing Rural and semi-urban In 2005, most of the
pattern is non uniform contributes 60% of total jewellery brands like
among the rural and urban consumption in India Tanishq, Amrapali, Kalyan,
India etc. was failed to cater the
rural and semi-urban
market, due to customer
perception toward it.
 Tata Group Business Reach overview

TATA Group
pioneer in The Tanishq acumen in Urban India
gold market
Foreign Exchange Indian made
Growing Titan
req. for Imported jewellery for forex
Watch Business
machine part requirement

Tanishq capatilize
Tata/Tamilnadu+nis
on fragmented Launch in 1994
haq=Tanishq
urban market
Launch of Tata GoldPlus
• In 2005, TATA group launched its second jewellery brand GoldPlus to cash in on the
opportunities in small towns and rural areas.
• As 40 per cent of the 800 tonnes of gold consumption is accounted for by the
Southern states of India (as per the case study), GoldPlus was initially launched at
Bheemavaram and at fifteen places across Tamil Nadu, Madhya Pardesh, Andhra
Pradesh, and Maharashtra and was received well in these states.
• As on date, GoldPlus being a fairly new brand, is operating at thirty locations and
does not have a substantial market share. But if we compare the markets in which
GoldPlus operates, it competes with over 10,000 big and small jewellers and has an
average share of more than 20 per cent which indeed is an achievement
 SWOT ANALYSIS
Of TATA GoldPlus

Opportunities
Strengths

• Tanishq, a experience brand in • Rise in Indian consumer disposable

urban market Income
•
•
•
Largest market share in South India
Established Brand Name
•

•
Emergence of three distinct market
segments
S
W
Cost-leadership Government Initiatives
• Superior craftsmanship • Untapped market in North India
• Innovative Marketing strategies • Changing customer preferences
• Age-old tradition of CSR practices

Weakness Threats

O
•
•

•
•
Not having a Pan India presence
Capital Intensive business with
fluctuating prices
Low margin
No credit facility
•

•
Growing competition from domestic
as well as foreign players
Customer strong trust in traditional
family jewellers
Silver and diamond as a potential
T
• Limited outlets alternatives
• Unsecured credits
• International market hindrances
 Marketing Mix Strategies
Of TATA GoldPlus

Price
Product
• Cost leadership strategy
• Focus on affordability
• Reduce acquisition cost through
• Separate product line for men and women
financial engineering
• Customize new design
• Reduce conversion cost by
• Packaging excellence
centralization fabrication
• Discount on festivals and special occasions
• Credit policy in line with harvest
system
• Differential pricing strategy

Place
• Replicate the franchisee model
• Display of jewellery in shop on
rent-cum-commission basis
• Online format
Promotion
• Use of Innovative method
• Involvement of village opinion leaders
• Advertise through regional celebrities
• Focus on women centric festivals
• Modified replication of promotion strategies of south
India
 Tata GoldPlus should adopt below strategy to compete
What with them -
1. Product Differentiation Strategy to compete with
Strategies competitor on design

should 2. The positioning of the brand should be so that it

influence the BOP customer rather than the niche
GoldPlus premium customer
3. Market Focus – TN, AP, Kerala, Karnataka – 800
adopt to tonnes consumed.

compete in 4. Target Small Fragmented Players (30800Cr), Big

family/regional players (14,200Cr)
the market? 5. Providing affordable gold loan service can also be
done to lure the rural women
 How can Tata had to take a lot of effort starting from
establishing trust, transparency and quality.
GoldPlus • Tata should focus on bringing transparency and
compete with smoothening the purchase process.
• The store should be so designed that it should give a
unorganized local and favorable experience to the buyers
• Hall Mark Scheme – Assured Purity by strict quality
sector like measures to stop fraud base metal have gold
polishing and adulteration using alloy.
mom-and-pop • Design – New designs and Styles that according to
stores? customer taste and preferences.
 Would it be advisable • The north India market is completely different
to launch the brand in as compare to that of the rural market, where
the Delhi NCR market, 40% is contributed by urban cities in gold
jewelry demand and 60% is contributed by rural
given the profile of the India.
rural and semi urban
• As, Tata is already having an established brand
customers in this like Tanishq to cater the demand of urban area,
region? What GoldPlus can continue maintaining it’s forte’ in
problems are they rural India.
likely to face while • TATA GoldPlus can also be launched in Urban
implementing this India, to achieve economy of scale and target
expansion strategy? unorganized demand in urban.
 • Gold Paper Slip
What • Gold Bill
innovative • Targeting Special Events and Festivals
strategies can • Promoting education campaign through the
gold chariot promotion plan carried out in TN
GoldPlus adopt • GoldPlus invites many potential customer to
to increase its visit their facilities and have interactive session
with them
market • Weddings Cards - Store manager keeps track of
share in the weddings and other social events by networking
with local priests and sends cards to them in
Indian market? advance
 As Brand
• They can diversify their portfolio and can invest
Manager of on gold and silver jewelry as well
GoldPlus, what • To increase their reach, they can focus other
strategies would part of rural India as well
you have • Mass media in villages like local newspaper,
radio can be used as a medium of promotion
recommended • Influencer person of villages like the Panchayat,
for strengthening literate person of villages like doctor,
government official can be used as a referral for
Tata Gold Plus increasing the sale
brand?