BMT5224 RETAIL MANAGEMENT

Assignment
Praveen S
18MBA1036
Situational analysis of Tanishq

Situational analysis primarily consists of

A. 5C Analysis
 Company
 Competitors
 Customers
 Collaborators
 Context

B. SWOT

C. Porter's Five Forces Industry Analysis

TANISHQ

5C Analysis

Company

 Exports would get them gold import licenses from the government.
 Pioneer the karat meter

Competitors

 Local competitors that were bigger than Tanishq locally.

 Indian a predominantly mechanical watch market.
 Low-cost Hong Kong based competitors.
 Teaming up of different jewellers from different regions.

Customers

 Targeted on Western consumer.

 Traditional but modern Indian woman segment.
 For people who saw “gold jewellery as an investment” opportunity.
 Women were the primary target for jewellery, men were the buyers.
 Attention to the domestic jewellery market.
  For premium products target was on urban household with an income of over
1lakh/month.

Collaborators

 A joint venture between the Tata Group and Tamil Nadu Industrial Corporation (TIDCO) became
TITAN.
 A joint venture with fashion designer Sabyasachi Mukherjee
 Associated in several high-profile fashion events
 With Paheli, a major Bollywood fairy-tale

Context / Climate

 Jewellery was very important in an Indian woman’s life.

 The European market appeared to be an opportunity.
 Positioning the Tanishq watches as jewellery that tells time.
 The watches were very heavy and appeared clunky and the prices were too high
 Change in the Indian jewellery market standard from 22-karat to 18-karat
 Consumer spending habits began to changed.

SWOT ANALYSIS

Strengths of Tanishq:

 The backing of Tata, Titan and TN government – Tanishq has a strong backing of Tata
Group and TN government giving it the necessary resources and markets to function
well.

 A trusted jewellery brand in India – It has been one of the most trusted jewellery brands
in India which brand recall is very high. This gives Tanishq an edge over its
competitors.

 Excellent promotional activities – There have been a lot of advertising and promotions
for the brand in terms of TV ads, hoarding, promotional offers. Again, this is helping
in maintaining the brand value of Tanishq in the market.

 Right Product Mix – Tanishq not only has wedding and diamond collections but also
deals in simple, low-priced, daily wear jewellery products giving it an opportunity to
reach out to the customers of every stratum of the society.

 Widespread geographical presence – Tanishq has a store presence in more than 100
cities in India. This is huge feat being a jewellery brand and it again gives an edge over
most of the competitors since a product like jewellery is what people want to feel and
buy.
  Multiple award-winning brands – The brand has won many awards in the past for its
designs, marketing, and retail chain categories to further strengthen its brand value.

 Endorsement by famous celebrities –Amitabh Bachchan, Jaya Bachchan, Deepika

Padukone and much more are the likes of celebrities this brand has got it associated
with for endorsement. These celebrities have every household reach in India which
strengthens the brand association of people of different categories with Tanishq.

Weaknesses of Tanishq:

 Limited international presence – Tanishq has a very limited international presence as

compared to some of the international brands in the jewellery arena.

 The limited scope of growth due to fierce competition – A large number of regionalized
competitors in India does not allow a fast-paced growth in the market. Tanishq has
stores in more than 100 cities but the growth rate is not as expected due to these direct
competitors.

 Initial negative perception of the brand being for rich only – The earlier perception that
Tanishq caters only to the rich people hurts a little. Even though they have products for
low-income groups as well now, this negative perception needs to be removed
completely.

Opportunities of Tanishq:

 Expand globally – This is a huge opportunity for Tanishq which will help in increasing
the reach, revenues, and profits if they can successfully expand themselves globally.

 Improve growth rate and profitability – This is necessary for every company in every
industry but yes for Tanishq it becomes all the more important to make sure they are
profitable in this volatile market with such dynamics and competition.

 Tap the growing economy – It is important to understand the growing demands of

growing economy and launch the right products at the right time. This is where Tanishq
really focuses upon to increase their market share.

 Indian wedding market is a big opportunity – Indian wedding market is one of the
biggest areas where every jewellery company can see something for itself and Tanishq
is no different. This makes it significant to continuously keep this market interested in
the brand.

Threats of Tanishq:

 Escalating gold rates – Gold rates are an ever-escalating affair which makes it difficult
for a company like Tanishq to have the consistent profit margins.
  Dynamic fashion trends – Fashion trends are always in a change mode which needs to
be met on almost daily basis. This affects the monetary value of the inventory of such
a big organization.

 Strong competition from both branded and traditional jewellers – Competitors are
always a threat to everyone is expanding which makes the window of growth even
smaller.

 Gold is not seen as an investment anymore – A big population in India which used to
buy jewellery by considering it as an investment is now moving to different options to
invest. It makes the industry more dependent on luxury and fashion targets.

 Changes in government policies and taxes – This has been a big problem for luxury
items. Every budget seems change in some of the other way in luxury products like
jewellery which affects the profitability of such companies in a big way.

 Increasing rates of interest – This is again related to the changes in financing rates
which are increasing year on year making it more difficult to reach profitability
consistently.

PORTER FIVE FORCES

1. Threat of new entrants - if there is strong threat of new entrants then current players will
be willing to earn less profits to reduce the threats.

2. Threat of substitute products and services - If the threat of substitute is high then Tanishq
Goldplus has to either continuously invest into R&D or it risks losing out to disruptors in the
industry.

3. Bargaining power of suppliers of Tanishq Goldplus - If suppliers have strong bargaining

power then they will extract higher price from the Tanishq Goldplus.

4. Rivalry among existing players – If competition is intense then it becomes difficult for
existing players such as Tanishq Goldplus to earn sustainable profits.

5. Bargaining power of buyers of Tanishq Goldplus – If the buyers have strong bargaining
power then they usually tend to drive price down thus limiting the potential of the Tanishq
Goldplus to earn sustainable profits.