Tanishq Marketing Report Essay Sample
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Tanishq Marketing Report Essay Sample
Tanishq unsuccessful launch (Problems)
When Tanishq first came into the Indian market, the company come out with a decision that they wanted their jewellery to be different from the traditional Indian offerings, this had cause them to have lot problem and totally difficult to be accepted by the customers. The problems that the company face were the cultural limitations, and the designs of their jewellery designs
The jewellery market in India was totally unorganised, before the Indian economy stabilized, only the Minerals and Metals Trading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to import gold. This had resulted in too little workshops supplying jewellery to all the jewellery retailers in India which were mostly family-owned or single shop operations.
The people in India had been using jewellery as a form of investment rather than an ornament. This had resulted in a difficulty in changing the understanding of jewellery as an asset to a fashion accessory. The Indians would always buy gold from the same jeweller that they had trusted. These Jewellers will always buy their products back at the prevailing market rates.
Design-customer preference mismatch
Tanishq started by selling jewellery in the 18-carat gold range and their designs were mostly taken from the contemporary European brands, The company had this thinking that they wanted to be different from the traditional Indian offerings which has caused them to suffer a great lost. Those customers in India were used to the jewellery that is heavy and have traditional designs. The jewellery designs that Tanishq had brought in when they first started had totally no innovation. The designs of the jewellery had been mainly design for the Western markets and they did not do any alterations.
Tarnish Initiative (Solutions)
For Tanishq to be more successful, they have to be the one standing out from their competitors and controlling the jewellery industry. For them to achieve success they must understand the market of the jewellery industry in India and gain control of the gold prices in India. They have to also come into many considerations, for example they must understand what their customers are looking for and what they want, whether their product is able to meet the satisfaction of their customers. Other than understanding their customers they have to ensure that they had the trust of their customers and also to ensure that their retailing plan is able to make the company’s brand to be well recognised in the market.
Understanding the market
At the very beginning of when Tanishq was firstly launched, they focus mainly on the export market which the designs were mainly for the westerners. They were unable to sell any of their products in the domestic markets. The very first step that the company has to take is to change the brand positioning to a more Indian one. Tanishq has to design their jewellery to a more redefine traditional styles. As they were doing business in India, they have to cater to the tastes throughout the country. The company has to shift their focus on the western designs to a more regional one and traditional ornaments.The company have to also come out with considerations to create a seasonal and localised promotions based on the Indian festivals
Gold Prices in India
In India, there was a different in gold prices throughout the country based on the different parameters in the local markets. Tanishq aim is to control the gold prices around the country. They have to set a standard gold price for all their retail boutiques in the country. The company has to compare their gold prices with the international exchange prices. The result of the comparison is that their prices have to be lower than the local market prices. Tanishq can also put into consideration to setup an manufacturing unit that had facilities like refining, alloying and stone casting and a dust-extraction programme that is able to keep the gold losses to only 2% of the raw material as many other local jewellers is only able to keep the losses as low as 8 – 10 % only. This manufacturing facility will help the company to charge the same prices for their gold across the county.
Innovation and production line
Tarnishq must be unique and stand out from the rest of the jewellers. The production and the quality of the jewellery play a very important role. Every single piece of jewellery must be crafted close to perfection and flawless. In order for the company to achieve such standard in their products, the Jewellery had to be crafted in the factories that are able to comply with all labour and environmental standards. It is also important for the factories to have the most latest and modern technology and machinery.
In order for Tarnishq to stand out from the rest of the jewellers they had to ensure that their finishing products are totally unable to be matched by any other jeweller in the country. This can be done by emphasizing the importance of quality checks to make sure that every product of Tarnishq is crafted to perfection and also to handle with care treating every single piece of Jewellery very importantly.
The company not only need to check on the crafting and finishing of the product, but also to ensure to the customer the value of their product by checking the purity of the gold. By introducing the innovation of karat meters in all their retails boutiques, the Karat meter uses x-rays to provide an accurate reading of the purity of the gold in the Jewellery. By doing all this, it will assure the customers that the price they paying for the jewellery were justified and this will also help the customer to understand the total value proposition that the company has to offer to them.
Understanding the Customers
Tarnishq have to adopt consumers-centered strategy by coming up with some plans that will be able to benefit their customers. In order to attract more customers, Tanishq must be able to understand their customers and segment them into different groups in their markets so to be able to provide a better customer service to different customers.
This can be done by launching a programme that can have a direct contact with customers, for example doing a survey to understand the customer’s needs and what kind of jewellery or services they are looking for. At the same time by doing this survey they are able to monitor the rate of repeating customer coming back again.
In India, not everyone is very rich and not all of them are able to afford to purchase expensive jewellery. Tanishq can consider having a wide range of prices, by keeping their entry-level price very low and the high-end prices which far exceed the prices that is offered by the other jeweller. The company can also come out with a 100% return guarantee on its brand and also a trade-in service where customers are able to exchange other brands of jewellery by depending on the purity level of the gold.
The company can come out with a program that is able to track down the customer’s satisfaction parameters for the company on a quarterly basis. This will allow the company to make a benchmark against the local and international players and at the same time help in keeping a record of repeating purchases.
Gaining Trust of Customers
The jewellery market in India was highly fragmented, branding issues and many unethical practices. Tanishq had to work hard on two strategy “Cultivating trust” and “Changing the perception that jewellery was a high-priced purchase.” Working on these two strategies will be able to lure customers away from the traditional jewellers that they always purchased from.The first part of the strategy is to focus on the whole point on branding. The second part of the strategy is to focus on trust.
The way to create differentiation is through the design of the jewellery. The attention has to be focus on the design as the local jeweller could offer any design of the jewellery according to the customer’s request. Tanishq have to be ahead of the, the company has to form up an in-house design team and at the same time also getting designs from other freelance designers. The designers have to do a country wide research on the customer’s designs feedback and preferences. Through all this research, all the retails boutiques of the company are allowed to select the designs they want to carry.
The way to gain the trust of the customer is the emphasis of quality control. Every customer is very interested in the purity of the gold. In order to ensure the customers the genuine value of their jewellery they had created, the company had to introduce the karat meters to measure the purity of the gold. The company can also come out with a company’s advertisement campaigns to bring out the importance of the purity aspect of all Tanishq ornaments.
The Retail plan
The shop in shop format that Tanishq is using now for their retailing plan will make them unable to be well recognised in the jewellery market. They have to come out with an innovative retail strategy that is able to make the company more well recognise in the jewellery market. Tanishq must do away their shop-in-shop formats and venture their way by setting up exclusive stores, both companies owned and franchise outlets. They must adopt this mindset that all the customers are demanding for a world class chopping experience. In order for the company to be successful in their retailing plan, they must be able to take advantage on the trends of the local markets. For the company to achieve this, they had to start building on the following factors, their financial strength, brand position, sourcing strategies, wide range of network, a management model of excellence and lastly customer service.
Tanishq’s retail strategy must excel beyond their innovative identity and extensive reach, by coming out with their own marketing and retail strategy that has never appeared before in the jewellery industry. Such retail strategy can be like the designs of their jewellery products; they can hire a team of designers to come out with various designs based on current trends and feedback from customers. They can also give freedom to all their retail outlets to select the designs that they think would sell in their stores. Tanishq have to invest a lot in their retail plans in order for them to further develop the market. They can further develop the market by building and upgrading of their logistics centres and building a strong foundation to face more challenging competition from the rest of their competitors.