2. 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
2.1 Cultural Limitations
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.
2.2 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.
3. 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.
3.1 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
3.2 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...
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