SHRM CASE-1

CREATING NEW MARKETS

Case Facts:

1) 1990’s Indian jewellery mkt witnessed a shift in consumer perception as not only as
investment option but also prized for its aesthetic appeal
2) The customer focus shifted from content to design
3) Trendy affordable and lightweight jewellery gained familiarity
4) Gold retailers increased
5) Minerals and metal trading corporation and SBI were allowed to import gold
6) The abolition of gold control act in 1992 allowed large export houses to import gold
freely
7) This act also led to a highly fragmented and unorganized jewelry market with an
estimated 100000 workshops supplying over 350000 retailers mostly family – owned
single shop
8) 2001 India highest demand for gold 855 tons were consumed 95% of jewellery
9) Hallmarking-inscription on any piece of jewellery shows the caratage of the gold used
10) Survey done bureau of Indian standards (BIS) most gold advertised in India as 22 carat
was of a lesser quality. Jewelers sold gold jeweler ranging from 13.5 carats to 18 carats as
22 carat gold
11) Titan sold under the name Tanishq, gitanjali – gili,
12) 1984 Questar investments limited ( tata group company) and he Tamilnadu industrial
development corporation limited (TIDCO) jointly promoted Titan watches limited( titan)
13) 1995 Titan watches ltd was changed to titan industries in order to change its image from
that of a watch manufacturer to that of fashion accessories manufacturer
14) In the same year it also started its jewellery division under the Tanishq brand
15) By 2002 Tanishq retailed its jewellery through 53 exclusive stores across 41 cities
16) It also planned to open 70 stores by the end of 2003 and offer a range of wearable
products with prices starting at 400 Rs
17) Sales 2.66 billion in 2000-01 it had a share 0.66% of total jewellery mkt and 27% share
of branded jewellery mkt.
18) In 1990 s players in branded gold jewellery mkt formulated strategies for wooing
customers according to jack Kurian coo challenges were many

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Case Issues:

a) Jewellery mkt was highly fragmented, lacked branding, and allowed many unethical
practices to flourish.
b) Local players sold their jewellery less than that they advertised
c) Competition between the local and branded players.

Suggestions:

a) In order to face the competition the branded players have to differentiate themselves,
make their products affordable and ensure quality.
b) They have to increase focus on advertising and astute salesmanship to compete with
traditional jewellers.

Answers:

1) Discuss the current landscape of branded gold jewellery market in India.

 The Indian market has witnessed an accelerated shift from viewing jewellery
investment to regarding it as aesthetically appealing ornaments the focus as
shifted from content to design.
 The younger generation was looking at trendy contemporary jewellery and clearly
avoiding heavy traditional jewellery.
 The consumer wanted a wider selection at a single convenient location and
expected an international shopping experience.
 The Indian consumer was willing to experiment with new design.
 Branded jewellery gained acceptance forcing traditional jewelers to go in for
branding.
 India had the highest demand for gold in the world. It consumed over 855 tons
each year where 95% was used for jewellery. And this jewellery was designed in
traditional Indian style.
 As hallmarking was not very common in India under caratage was prevalent and
most of the gold jewellery advertised as 22 carat was sold at 13.5 carats to 18
carats because of which in late 1990s branded jewellery players entered the
market. The Indian jewellery market was unorganized and followed unethical
practices due to which many branded jewellers started educating people about
trust. Therefore the perception of Indian consumers gained an increased interest in
Branded jewellers because the focus moved from content to design and trust
which many branded jewellers offered.

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2) What are the strategies foe enticing Customers by the different players?
a) Tanishq:
 Tanishq worked on 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.
 Changing the attitudes of customers from blind trust to informed trust.
 To increase mkt share : Tanishq formulated a strategy for luring people away
from traditional neighborhood jewelers
 Its strategy was to create differentiation and build trust
 1st part of strategy: to provide a point of differentiation in a highly commoditized
category which is the whole point of branding
 2nd part; to project Tanishq as an unimpeachable mark of trust

b) Carbon:
 It focus and strategy was to move jewellery from the vault to dressing table and
bring the selling of jewellery out of heavily guarded jewellery stores
 It also sold its products as gift items over the internet
 The other strategy to eliminate the low [productivity, quality inconsistencies and
high precious metal lost associated with traditional jewellery making.
 They use Japanese Kaizen approach to improve in operational practices.
 They use cross promoting carbon jewellery with other branded lifestyle products
such as clothing, perfumes and cosmetics.
c) Oyzterbay:
 They emphasized on marketing and advertising strategies to give the necessary
thrusts for growth.
 It used media campaign to highlight the new looks.
 They used communication strategy which focused on addressing the age group of
18-34 instead of 14-24.
 They positioned themselves as 1) jewellery for office wear, evening wear or even
a fitness session. 2) To accessorize the dress of the young and college going
crowd. 3) The next group was working women.
 They also targeted the niche market extending the same brand values to
diamonds.
d) Gili:
 They brought the collection of targeting teens and launched its diamond heart
collection which priced between 500-2500.
 They used the strategy of advertising and also customizing its products for special
occasions like Valentine’s Day, Christmas & Diwali.

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e) Trend Smith:
 They specialized in premium exclusive and modern looking jewellery.
 They had different collection for babies, teenagers and wedding.
 They used comfortable ambience to attract customers.
 Their store targeted those with little time and big pockets.
 It used its own design studios where the customers could design their own
jewellery.
 They hosted events to display their new collection.

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