Tanishq Competition Analysis
Tanishq has established itself as the most desirable and trustworthy jewelry brand in India. The product portfolio includes jewellery for everyday wear and for occasions, in 22-carat gold, diamonds and precious gemstones. Tanishq grew by 57 per cent to Rs. 2,028 crore during financial year 2008 on the back of retail expansion and improvement in per-store growth. There is an immense scope for further growth as Tanishq comprises a small share of the overall Rs 70,000-crore Indian jewellery market i. e. 2. 89%. But in the organized retailing it has a whopping 40% market share. Among the branded jewellery players in the Indian market, Tanishq is considered to be a trendsetter.
GILI: In 1994, Gili Jewellery was established as a distinct brand by Gitanjali Jewels. Gili offered a wide range of 18-carat plain gold and diamond-studded jewellery, designed for the contemporary Indian woman. Mumbai-based Tribhovandas Bhimji Zaveri (TBZ), opened its new concept store ‘Trendsmith’ in Mumbai in December 2001. Encouraged by the response towards its first store, the Zaveris planned to take Trendsmith (India) Pvt. Ltd. all over the nation by opening as many as 100 stores by 2010. CARBON: In early 1991, the Bangalore based Peakok Jewellery Pvt. Ltd. , was incorporated. In 1996, a new brand of 18-carat gold-based jewellery called Carbon was launched.
Tanishq worked hard on a two-pronged brand-building strategy: cultivate trust by educating customers about the unethical practices in the business and change the perception of jewellery as a high-priced purchase. Tanishq’s strategy was to create differentiation and build trust. According to Kurian, the first part of the strategy was “to provide a point of differentiation in a highly commoditized category – which is the whole point of branding. ” The second part of the strategy was to project Tanishq as an unimpeachable mark of trust. One way to create differentiation was through design. Tanishq’s USP was the purity of its gold.
Accordingly, the company’s ad campaigns emphasised the purity aspect of all Tanishq ornaments. In November 2002, Tanishq introduced a new collection of jewellery called ‘Lightweights. ‘ The collection featured neckwear, earrings, bangles, rings and chains in 22 karat gold with prices starting at Rs 1,100. Tanishq focused not only on urban markets, but small town markets as well. CARBON Carbon’s focus had always been to move jewellery from the vault to the dressing table and bring the selling of jewellery out of heavily guarded jewellery stores. This was achieved by persuading a few lifestyle stores to add branded jewellery to their vast array of products.
Besides selling from lifestyle stores, Carbon also sold its products as gift items over the internet. Diamond was the preferred precious stone, but other colored stones were also used. Comprising items of everyday use, (rings, chains, bracelets, ear studs, tie-pins and cuff links) Carbon items were an impulse purchases. While the cost of traditional jewellery was negotiable, the cost of Carbon items was fixed and nationally uniform. GILI Gili was launched in 1994, targeting mainly the youth who wanted to celebrate Valentine’s day. Gili distributed its jewellery priced between Rs. 500 and Rs. 40,000 through lifestyle and department stores across the country to increase accessibility among its target segment, the 15 to 30 age group.
The company’s products were also made available through a mail-order catalogue. All Gili products came with a guarantee of diamond and gold quality. In 2000, Gili launched its ‘diamond heart collection’ targeted at teenagers and priced between Rs 500 and Rs. 2500. The collection was promoted at college campuses with banners, pamphlets and a few advertisements targeted at teens. Gili soon realized that just pushing its product was not enough; it also had to customize its products for special occasions. Following this, it launched a Diamond Heart Collection specially designed for Valentine’s Day. Gili also made special promotional offers during festive seasons like Christmas and Diwali.
Trendsmith specialized in premium, exclusive and modern looking jewellery distinct from TBZ’s traditional designs. The brand’s USP was that every piece of jewellery was exclusive and unique. There were different collections for babies, teenagers and weddings. According to Samrat Zaveri, Managing Director, Trendsmith “is a store for those with little time and big pockets. ” Trendsmith laid emphasis on affordable, fashionable jewellery. It changed its collection every season. Trendsmith also had a design studio where customers could design their own jewellery. The company advertised in women’s fashion and lifestyle magazines since the readers of such magazines formed 80 percent of its clientele.