Visual Merchandising

Visual Merchandising

CHAPTER IVisual merchandising an over viewVisual merchandising is the activity of promoting the sale of goods, especially by their presentation in retail outlets. This includes combining products, environments, and spaces into a stimulating and engaging display to encourage the sale of a product or service. It has become such an important element in retailing that a team effort involving the senior management, architects, merchandising managers, buyers, the visual merchandising director, designers, and staff is needed.Many elements can be used by visual merchandisers in creating displays, including color, lighting, space, product information, sensory inputs such as smell, touch, and sound as well as technologies such as digital displays and interactive installations.PurposeRetail professionals display to make the shopping experience more comfortable, convenient and customer friendly by: Making it easier for the shopper to locate the desired category of products and merchandise. Making it easier for the shopper to handpick the products. Making it possible for the shopper to co-ordinate & accessorize. Informing about the latest fashion trends by highlighting them at the strategic locations.VM helps in: Educating the customers about the product/service in an effective and creative manner. Establishing a creative medium to present merchandise in 3D environment, thereby enabling long lasting impact and recall value. Setting the company apart in an exclusive position. Establishing linkage between fashions, product design and marketing by keeping the product in prime focus.Visual merchandising strategies followed at BIG BAZAAR

A Planogram allows planning of the arrangement of merchandise on a given fixture configuration to support sales through proper placement of merchandise by Style, Option, Size, Price points, etc. It also enables a chain of stores to have the same merchandise displayed in a coherent and similar manner across the chain.At big bazaar they used the proper combination of each of these elements to support ease of applicability to the consumer and also increasing selection & enhancing the merchandise display in a neat and organized manner.giving Merchandise the focal pointAt big bazaar they showcased the major fast moving products within the overall display area in a way that no prospective consumer will miss a product that they were looking for. And in the entry stage itself they displayed a proper map of the shop stating the brief description of products available in each floor along with information for rest room and customer desk areas. This helps in educating the consumer about the detailed products and saves their time from unwanted enquiries also helps them to engage more on their shopping activityusing the Right choice of colors Color is one of the most powerful tools in the Visual Merchandising segment. It is a visual perceptual property. Colors can be associated with emotions, special occasions and gender. It attracts attention and pulls more customers into the store. At big bazaar they utilized the major advantage of this factor and used it in the entire store for the arrangement of products. During my project period I was put up in food bazaar. There I noticed that in all the shelves they arranged the packs based on color of the packs so that they formed color gradients giving emphasize to strong color packs and slightly saturating to the lighter shade packs. This helps in grabbing the attention of the customer and holding it for minimum of 5-10 seconds and also helps them for effective scanning between the products across the shelves without straining the eyes much.Displaythemes to appropriately support the product:I did this project at Big Bazaar during their big day sales or Mahabachat which will happen every year during republic day and Independence Day. The sale lasts for 5 days. For these 5 days they decorated the store with themed displays of offers available during these Mahabachat sales throughout the store and windows. It sets the context in an aesthetically pleasing fashion, presenting them in a way that would convert the window shoppers into prospects and ultimately buyers of the product.Cleanliness:Neat and clean arrangement is the foundation of an inviting a successful visual display. A beautiful display can be ruined by a cracked sign holder or an unclean display environment. In big bazaar I noticed that they took enormous effort in cleaning the floor and followed an effective cleaning schedule of showcases and display fixtures.CONCEPTUALIZATIONIn conceptualizing the study, I have attempted to build relationship between key variables i.e., visual merchandising (independent variable) and buying behavior (dependent variable). According to the literature review, I came to know that lighting, design layout, product display and cleanliness are the main variables of visual merchandizing. It is also necessary to examine the relationship between two key variables and other variables influenced on dependent variable. This would enable me to interpret the findings in a more comprehensive manner. The conceptual model that has been developed indicating their relationship is given below

Visual merchandizing and consumers buying behavior.This study focused on the visual merchandizing and consumer buying decisions. The main objective of this study was to examine the influence emerged from visual merchandizing and the usage of new medias into the VM such as postages, signages themed displays for influencing consumers buying decisions. The finding shows that influence emerged from visual merchandising on consumers buying decisions is strong. From this it is clearly shown that highest mean value of visual merchandising is 59.9 from the age group of 30 -40 shows that people belonging to this group is highly attracted towards VM. It was represented in strongly influenced score category. However, visual merchandising consists of four variables such as lighting, design layout, product display and cleanliness, all of those variables, have considerable influence in selecting specific supermarket outlet. The usage of new mediums in a unique way has a strong influence in buying decision. The majority of respondents (31 & 30.5) mentioned that posters and product displays majority themed displays in supermarkets outlets strongly influence on their buying decisions. In the same time, 30% of respondents have indicated that product display strongly influence on their buying decisions. Moreover, the frequency of product display is 310. It is more close to the higher level of strongly influenced score category. The findings show that 30% of respondents have indicated that posters are strongly influencing their store buying behavior. The smallest value equal to 19 that represents the moderately influenced score category. Most of the customers mentioned that in-shop promotions are one of the most important factors of attractive in-store environment of supermarket outlets. According to the findings, 191 respondents have indicated in-shop promotions will affect in a strong and moderate way respectively on their buying decisions. Though signage has low impact actually it helps in gaining the passer-by attraction and from results it is also clearly shows that in-shop promotions and product displays holds the consumers for a long time results to the buying decision. Therefore, the quantitative figures show that visual merchandising has significant impact in buying decisionsIn addition to the in-store variables, most of consumers consider price of goods, location, and customer service and parking facilities etc. When customers are ranking the relative importance of factors affecting to the buying decisions, most of customers have given first and second priority to visual merchandising as it conveys them clearly what the product is and whom it is meant for also at the same time it also informs the consumers about the offerings and discounts associated with that product. Second and third largest amount of customers mentioned price of goods and location of the outlets.Indian Retail Sector Industry overviewThe Indian retail sector is at an inflexion point, with changing demographics driving growth of organized retailing and driving growth in consumption. With changing demographic and economic profile of the Indian population, we believe that India expected to experience accelerated consumption over the next few years. Further, we believe that increase in consumer spending would be driven by nuclearisation of families, increasing population of working women and new job opportunities in emerging service sectors such as IT enabled services. With declining interest rates an average Indian is not averse to taking loans.Not only are the demographic factors becoming more favorable but also the growing media penetration is leading to a convergence of aspirations of various classes of consumers. We believe a larger number of households are adding to the consuming class with growth in income levels. The number of households with income of over Rs. 45,000 per annum is expected to grow from 58 million in 1999-2000 to 81 million by 2005-06 (source: the marketing white book 2003-04,brought out by business world).of this,56%(44.8 million households)is expected to concentrated in urban India. This large base of households with growing disposable income is expected to drive demand for organized retail.The changes in demographics are changing consumption pattern in the country. Central statistical organization (CSO) estimated private final consumption of consumers in India at about Rs.17,600 billion in FY04.of the total private consumption, retail sector accounted for approximately 60% at Rs.8570(source: image retail).of this, food and beverages, apparel and consumer durables are the top three categories of consumer spend and from 87% of the total retail sales in India. The Indian retail industryIndia has a large number of retail enterprises. With close to 12 million retail outlets in India has one of the highest retail densities in the world. In terms of the structure, the industry is fragmented and predominantly consists of independent, owner-managed shops. The retail business include verity number of traditional retail formats such as kirana stores which stock basic household necessities (including food products),street markets-regular markets held at fixed centers retailing food and general merchandise items, street vendors mobile retailers essentially selling perishable food items fruits, vegetables etc and small non specialized retailers. Growth in organized retailIn sharp contrast to the global retail sector, retailing in India-though large in terms of size it is highly fragmented and unorganized. With close to 12 million retail outlets India has the largest retail density in the world (source: CII Mc Kinsey Report titled Retailing in India the emerging revolution)However, most of these retail outlets belong to the unorganized sector. The inability of unorganized sector to offer a wide range of products along with artificially inflated costs due to various factors have presented opportunities for growth in the organizes retail sector migration from ungrouped to organized retail has been visible with economic development in most economies. The Indian retail industry is evolving in line with changing customer aspirations across product groups, with modern products of retailing emerging. Organized retail derives its advantages in generating operational efficiencies while simultaneously catering to rising consumer aspirations. Size drives economics on procurement and lowers logistics and marketing costs while delivering better value to customers in terms of lower price, better quality, greater selection, improved service and in store ambience.

LIST OF RETAILERS IN INDIAHere is a comprehensive list of retailers in India across various segments.HYPER MARKETS: Hyper City, Big Bazaar, Spencer, Star India Bazaar, Shop Rite.DEPARTMENT STORES: Shoppers Stop, Pantaloons, Lifestyle, Globus, Westside and Central Mall.CONVENIENCE STORES: Trumart , Nilgiries ,Food World , Subhiksha , Reliance Fresh, Trinetra , Spencers daily and Spinach.SPECIALITY STORES: M.A.C, Titan, Tanishq, Bata.SPECIALTY FORMATS: Concept living room style spa and tangent.CONSUMER DURABLE CHAINS: Viveks, Tata Croma and Vijay SalesSWOT Analysis of Retail Sector: 1Strenghts: Demographic favour. increase in number of people in earnercategory. Urbanization. Low labor cost of skilled ones Shopping convenience. Changing consumer habits and lifestyles. Plastic card revolution. Greater availability of quality retail space.

2 Weakness: Policy related issues:i. lack of industry status for retail.ii. numerous licence,permits and registration requirement. iii. farmer and retailer unfriendly APMC act. Limited consumer insight:i. lack of detailed region specific customer data.ii. less data on spending pattern. inadequate human resources:i. lack of trained personnel at all level.ii. stringent employment and industry laws.iii. fragment approach to human resources. Taxation hurdle:i. inconsistent octori and entry tax structure.ii. vat and multiple taxation issues.iii. large grey market presence. Underdeveloped supply chain:i. underdeveloped logistics infrastructure.ii. absence of national cold chain networks.iii. lack of national distribution networks and hubs. Lack of adequate utilities:i. lack of basic infrastructure like power, transport andcommunication creates difficulty in sustaining retailoperations across the large geographical spread ofcountry.3.Opportunities:

Potential for investment. Locational advantage. Sectors with high growth potential. Fastest growing formats. Rural retail. Wholesale trading. Falling real estate cost. E-retailing. Retail franchising.4.Threats :

Political issues. Social issues. Inflation. Nostalgia Lack of differentiation among the malls that are coming. Poor inventory turns and stock availability Measures.

Major players in various formatsHYPER MARKETBig Bazaar, Spencers, Vishal Retail, Magnet, Star India Bazaar, Shop Rite.

DEPARTMENT STORESShoppers Stop, Pantaloons, Pyramid MegaStore, Lifestyle, Globus, Westside. Central Mall

.CONVENIENCE STORESTrumart, Nilgiris, Food World, Subhishka,Tirtenthra, Spencers Daily. Spinach.

SPECIALITY STORES

M.A.C, Titan, Bata, Tanishq,

SPECIALITY FORMATSArchies, Depot, Landmark, Crossword, Planet M

FOOD RETAILERSMcDonalds, Pizza Hut, Pizza Cornier, BombayBlues, KFC, Dominos, Smokin Joes

FURNITURE RETAILINGConcept, Living Room, Style Spa, Tangent

CONSUMER DURABLE CHAINSViveks, Croma, Vijay Sales, Sumaria, And SonyMony.

CHAPTER IIIntroduction to BIG BAZAARI chose BIG BAZAAR at Pondy bazaar in Chennai to do my project under the topic A STUDY ON IMPACT OF VISUAL MERCHANDISING, a unit of FUTURE GROUP is one of the most well-known Retail firms in India. I found Retail business appropriate for the topic as this is the only business which gives importance for visual merchandising and future group is one such firm a leading player in the industry and also encourages students like me to conduct this this kind of studies in their outlets and providing proper support and assistance Need and importance of visual merchandisingVisual merchandising today forms a critical element of retailing. Besides the facade and windows, which are clearly done up with an objective to attract passer-bys and induce walk-ins, there is also in-store decor that is designed to enhance the customers comfort and convenience while shopping and overall, offer a superior shopping experience.Consumer behavior studies have confirmed that the lure of a beautifully done up show window and a tastefully decorated facade, more often than not, prove irresistible as they walk in to check out what is on offer. It also ensures exclusivity since no two stores should look alike. Besides, when the mood and theme of such displays change at regular intervals, it makes certain that the store remains top of mind. Loyal customers have often been known to anxiously wait for the next display. Stickiness in retail formats is also ensured by the imaginative use of colors, lighting, space, furniture and visual elements with regard to in-store displays.Once customers walk in, it is but imperative to ensure that they enjoy their first encounter with the store. After all, repeat visits will only happen if a customers first visit is a memorable one. The logical arrangement of counters, with clear passageways allows for easy access to merchandise.Rather than getting lost in the big space that most large stores are, the customer feels more in control. Space is allocated to various product categories taking into account the number of SKUs stocked and shelves/counter space requirements are worked out accordingly.Clear passages are provided for products, which require touch and feel. All impulse purchase driven products are also clearly displayed so that the customers can reach them without any hindrance. Also, it has been observed that when a person enters a room, the human eye moves in a Z pattern, i.e. from rear left of the room to right rear, followed by front left of the room to front right.

INDIAN RETAIL INDUSTRY AN OVERVIEWIndia retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. The BMI India Retail Report for the third-quarter of 2010, forecasts that the total retail sales will grow from US$ 353 billion in 2010 to US$ 543.2 billion by 2014. With the expanding middle and upper class consumer base, there will also be opportunities in India's tier II and III cities. The greater availability of personal credit and a growing vehicle population to improve mobility also contribute to a trend towards annual retail sales growth of 11.4 per cent. Mass grocery retail (MGR) sales in India are forecast to undergo enormous growth over the forecast period. BMI further predicts that sales through MGR outlets will increase by 154 per cent to reach US$ 15.29 billion by 2014. This is a consequence of India's dramatic, rapid shift from small independent retailers to large, modern outlets.BMI forecasts consumer electronic sales at US$ 29.86 billion in 2010, with over the counter (OTC) pharmaceutical sales at US$ 3.28 billion. The latter is predicted to be the fastest growing retail sub-sector and BMI forecasts that sales will reach US$ 6.18 billion by 2014, an increase of 88.5 per cent.Moreover, for the 4th time in five years, India has been ranked as the most attractive nation for retail investment among 30 emerging markets by the US-based global management consulting firm, A T Kearney in its 8th annual Global Retail Development Index (GRDI) 2009. India remains among the leaders in the 2010 GRDI and presents major retail opportunities. India's retail market is expected to be worth about US$ 410 billion, with 5 per cent of sales through organized retail, meaning that the opportunity in India remains immense. Retail should continue to grow rapidlyup to US$ 535 billion in 2013, with 10 per cent coming from organized retail, reflecting a fast-growing middle class, demanding higher quality shopping environments and stronger brands, the report added. Bharti Retail strengthened its position in northern India by opening 59 stores, Bharti Wal-Mart is expected to open 10 to 15 wholesale locations in the next three years, and Marks & Spencer is considering plans to open additional outlets in the next few years.Established retailers are tapping into the growing retail market by introducing innovative store formats. Spencer's Retail, More (owned by Aditya Birla Group) and Shoppers Stop (owned by K Raheja Group) already plan to expand.According to a McKinsey & Company report titled 'The Great Indian Bazaar: Organized Retail Comes of Age in India', organized retail in India is expected to increase from 5 per cent of the total market in 2008 to 14 - 18 per cent of the total retail market and reach US$ 450 billion by 2015.Furthermore, according to a report titled 'India Organized Retail Market 2010', published by Knight Frank India in May 2010 during 2010-12, around 55 million square feet (sq. ft.) of retail space will be ready in Mumbai, national capital region (NCR), Bengaluru, Kolkata, Chennai, Hyderabad and Pune. Besides, between 2010 and 2012, the organized retail real estate stock will grow from the existing 41 million sq. ft. to 95 million sq. ft.India continues to be among the most attractive countries for global retailers. Foreign direct investment (FDI) inflows between April 2000 and April 2010, in single-brand retail trading, stood at US$ 194.69 million, according to the Department of Industrial Policy and Promotion (DIPP).Leading watchmaker Titan Industries Limited plans to invest about US$ 21.83 million for opening 50 premiums watch outlets Helios in next five years to attain a sales target of US$ 87.31 million. "We are looking to open Helios outlets in Mumbai, Delhi, Hyderabad, Kolkata, Chennai, Pune, Ahmedabad etc. in next 12 months," said Ajoy Chawla, Vice President (Retail), Titan.British high street retailer, Marks and Spencer (M&S) plans to significantly increase its retail presence in India, targeting 50 stores in the next three years. M&S currently operates 17 stores in India through a joint venture (JV) with Reliance Retail.Bharti Retail, owner of Easy Day storesupermarkets and hyper martsplans to invest about US$ 2.5 billion over the next five years to add about 10 million sq. ft. of retail space in the country by then, according to a company spokesperson.

FUTURE GROUPThe field of study was conducted at Big bazaar a unit of Pantaloons Retail (India) Limited. Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 12 million square feet of retail space, has over 1000 stores across 71 cities in India and employs over 30,000 people.The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include Brand Factory, Blue Sky, all, Top 10 and Star and Sitara. The company also operates an online portal, futurebazaar.com.A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and eZone focused on catering to the consumer electronics segment. Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona.Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space.

Future GroupFuture Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of Indias leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of retail space in 71 cities and towns and 65 rural locations across India.Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail.In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and Bangalore.The groups specialty retail formats include, books and music chain, Depot, sportswear retailer, Planet Sports, electronics retailer, Ezone, home improvement chain, Home Town and rural retail chain, Aadhar, among others. It also operates popular shopping portal, futurebazaar.com. Future Capital Holdings, the groups financial arm provides investment advisory to assets worth over $1 billion that are being invested in consumer brands and companies, real estate, hotels and logistics. It also operates a consumer finance arm with branches in 150 locations. Other group companies include, Future General, the groups insurance venture in partnership with Italys General Group, Future Brands, a brand development and IPR company, Future Logistics, providing logistics and distribution solutions to group companies and business partners and Future Media, a retail media initiative.The groups presence in Leisure & Entertainment segment is led through, Mumbai-based listed company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports Bar and Bowling Co. and family entertainment centres, F123. Through its partner company, Blue Foods the group operates around 100 restaurants and food courts through brands like Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato.Future Groups joint venture partners include, US-based stationery products retailer, Staples and Middle East-based Axiom Communications.The groups flagship company, Pantaloon Retail was awarded the International Retailer of the Year 2007, by the US-based National Retail Federation, the largest retail trade association and the Emerging Market Retailer of the Year 2007 at the World Retail Congress in Barcelona.Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the groups core value of Indianness. The groups corporate credo is, Rewrite rules, Retain values.VisionFuture Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner.MissionThey share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development.They will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments for classes and for masses.They shall infuse Indian brands with confidence and renewed ambition.They shall be efficient, cost- conscious and committed to quality in whatever we do.They shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.Core valuesIndianness: confidence in ourselves.Leadership: to be a leader, both in thought and business.Respect & Humility: to respect every individual and be humble in our conduct.Introspection: leading to purposeful thinking.Openness: to be open and receptive to new ideas, knowledge and information.Valuing and Nurturing Relationships: to build long term relationships.Simplicity & Positivity: Simplicity and positivity in our thought, business and action.Adaptability: to be flexible and adaptable, to meet challenges.Flow: to respect and understand the universal laws of nature.Major Milestones2001- Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad.2002- Food Bazaar, the supermarket chain is launched.2004- Central - Indias first seamless mall is launched in Bangalore.2005- Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League Clothing and Planet Retail. Sets up Indias first real estate investment fund Kshitij to build a chain of shopping malls.2006- Future Capital Holdings, the companys financial is formed to manage over $1.5 billion in real estate, private equity and retail infrastructure funds. Plans forays into retailing of consumer finance products.Home Town, a home building and improvement products retail chain is launched along with consumer durables format, Ezone and furniture chain, Furniture Bazaar. Future Group enters into joint venture agreements to launch insurance products with Italian insurance major, General Forms joint ventures with US office stationery retailer, Staples.2007- Future Group crosses $1 billion turnover mark. Specialized companies in retail media, logistics, IPR and brand development and retail-led technology services become operational. 2008- Future Capital Holdings becomes the second group company to make a successful Initial Public Offering in the Indian capital markets. Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of a hypermarket format anywhere in the world. Total operational retail space crosses 10 million square feet mark. Future Group acquires rural retail chain, Aadhar present in 65 rural locations.BIG BAZAARBig bazaar, Pondy Bazaar was the second store to make an impact in the minds of the customer. It was opened in the month of June, 2008. Situated in the midst of an IT hub, it welcomes customers with exciting offers and discounts. Pondy bazaar is among the few areas in Chennai that is full of activities with shopping malls, eat out joints, restaurants etc. This also brings a lot of competition for the store. Measures are taken to retain the customers by training the employees to be polite and vigilant.The various departments in the store are as follows:Food bazaar departmentCash departmentPlastics, Utensils and CrockeryAppliancesFootwearNew Business DevelopmentsDepotHome LinenFurnitureApparelsVisual merchandiseHuman ResourceAdministrationWare house / LogisticsMaintenanceCustomer Service Department

Jewels of India

In the branded jewellery segment, Tanishq has established its leadership position and built a persona which is premium, stylish, exquisite and pure"Diamonds are a girl's best friend!" sang Marilyn Monroe, seductively, in the 1953 hit movie Gentlemen Prefer Blondes. The conviction has not changed since then. Think birthdays, anniversaries, special moments and what is it that will bring a sparkle to a woman's eyes? The flash of diamonds! The glitter of gold! The glorious glint of jewels!

An Indian woman's penchant for jewellery is perhaps greater than that of women elsewhere. The love affair starts from the cradle. As a baby, bangles dangle from her wrist and anklets tinkle as she moves. By the time she is a toddler, she has added earrings and probably nose rings to her jewellery casket. And when she gets married, she receives as gifts streedhan wealth in the form of jewellery from her parents. Adorning herself with jewellery is an everyday affair, not restricted to occasions and festivals.

No wonder jewellery has always been big business in India. In June 1995, when Tanishq entered the segment, the market was dominated by the neighborhood sonars (goldsmiths) who would craft designs in gold for women. Sometimes the finesse would be missing; often the gold would not be pure. Tanishq, as the first brand of jewellery in the Indian

market, changed all that. It promised pure gold and offered elegant designs at transparent prices.Since then, Tanishq has built on its first mover advantage and remained the market leader through the years, despite many new entrants to the business. The company has been growing at the rate of 40 per cent per year for the past five years and has registered a turnover of over Rs 750 crore in 2005-06. The target now is to achieve a turnover of Rs 1,000 crore in the current fiscal.

Innovation mantra

The most important factors spurring Tanishq's success are innovation in the business model, in design and in promotions and the trust the Tata name evokes. Tanishq is no longer the only brand wooing the Indian woman; Nakshatra, Sangini, Asmi, Damas at all are also in the race. The difference is that most of these are predominately product brands, while Tanishq is a retail brand, giving customers a unique shopping experience. Govindraj, VP retail and marketing, explains, "Tanishq is available only at exclusive outlets and this was the company's first innovation. Today we have 80 showrooms in 60 cities." This was not the only weapon in Tanishq's arsenal. It won the trust of its customers by installing karat meters in its outlets to check the purity of gold. Tired of not being sure of the quality of gold they had bought, women were delighted. The karat meter uses the principle of spectroscopy to test the purity of gold without damage to the ornament or loss of any of the gold.

Tanishq's unique designs are created with the Indian woman in mind. Aware that a woman plays different roles at work and at home, and dresses differently for every occasion, Tanishq has created specific collections that have set a new fashion in jewellery. "We are aligning ourselves by contemporizing traditional jewellery and making it relevant for them," says Venkataraman. Marketing moves

Tanishq's marketing and promotional strategies have been equally trendsetting. It uses a 360o approach in creating brand equity and a persona of purity, style and exquisiteness. Be it the talking billboards in their storefronts enticing customers to walk in, or the crowns it has been designing for the Ponds-Femina Miss India contest, Tanishq's marketing moves have panache. Their new campaign 'the emerging Indian woman' gracefully blends the traditional and the modern.

Another first was the special collection designed for the movie, Paheli. It was a huge promotional initiative and a bigger than ever canvas to display and promote its high-end designs. "It was the ideal vehicle to position Tanishq in the serious jewellery space as well as bring it closer to the consumer," says Venkataraman. "Indian fashion actually is actually led a lot by films. As a medium it influences customers significantly," adds Govindraj. The movie, a tale of eternal love set in Rajasthan, proved to be perfect for showcasing the vibrancy and beauty of kundan, meenakari and jadau jewellery. No less enticing was their "19 = 22" offer in which customers could buy gold jewellery giving their 19-carat gold which was valued at 22-carat prices. "The exchange offer helped customers to get rid of the inferior gold and helped Tanishq acquire new customers.

Learning the ropes

Today, Tanishq enjoys a dominant position in the jewellery industry and its customer retention is at 85-90 per cent. It wasn't so always. When Tanishq was launched, its portfolio comprised diamond-studded jewellery in western designs. The company soon realized that to succeed it required a mix of traditional jewellery and contemporary designs. Next, they learned to value regional preferences. Designs were customized depending on the regions and markets: the seven-diamond floral motif collection was contemporized but the traditional designs of the mangalsutras remained unchanged. Jewellery showcased in stores in south India was different from designs available in eastern India. Tanishq was spreading its glitter, and fast. Changing lifestyles

Meanwhile, the business environment had also swung in Tanishq's favour. Changing consumer demographics due to rising incomes, dual incomes and exposure to foreign designs brought about a change in the way people looked at jewellery. If jewellery was once bought as an investment or as part of a daughter's dowry, it was no longer the case.

With the rise in number of working women and disposal incomes, people have begun visiting the jewellery shop more often. Weddings still remain and will remain the time when maximum money is spent on jewellery, but now impulse buying is becoming increasingly common.

Just 10-15 years back, jewellery was synonymous with gold. Semi-precious stones were popular but not diamonds. Happily for Tanishq, that has changed. The share of diamond sales in total jewellery sales is an indicator of the trend. "Tanishq has a share close to 30 per cent compared to the industry's share of 12-14 per cent. It is another indicator of Tanishq's first mover status," explains Venkataraman. A war in the offing?With the growth in the market and the government's decision to allow FDI up to 51 per cent in single brand retail stores, some of the world's biggest jewellery brands, such as Tiffany, Cartier and Zales, are setting up shop in India. Is that cause for concern? Tanishq is not fazed, because "Tanishq understands the Indian woman's psyche," says Venkataraman. "Indian jewellery is different from western jewellery and it will take a while for foreign brands to understand and develop the capability." Some of these brands,

Especially Cartier and Tiffany are semi-luxury and luxury brands and operate in a space different from Tanishq's area of operation. Striking the right balance between network expansion and consolidation of individual stores, and backed by its understanding of the Indian woman, Tanishq is confident it will continue to grow, innovate and do what it does best make women look and feel special.Pioneering can be a poisoned chalice. Tanishq as much a trailblazer in the Indian jewellery business as its parent, Titan, was in the watch industry knows this better than most.The division was in dire straits in 2000 after posting losses for the third successive year. That made four years of dripping red in Tanishqs seven-year life. To make matters worse, the executive team had resigned, and stakeholders and store franchisees were utterly disillusioned.

The going could not have been tougher when Tanishq got going with its efforts to rekindle and rejuvenate an idea that had promised so much. With a never-say-die spirit for company, a new and inexperienced team set about turning around the divisions fortunes.Today, three years later, Tanishqs turnover has trebled to Rs 389 crore, with profits of Rs 7.82 crore, a whopping 318 per cent rise over 2001-02. The annual growth rate is now pegged at 40 per cent.Harish Bhatt, the newly appointed chief operating officer of the division, is justifiably delighted: "Team Tanishq is very proud of this spectacular achievement," he says. "Our people have driven this turnaround; they brought resolute belief, immense energy and abiding focus to everything that we did."During this landmark year, Tanishq has also generated positive economic value by delivering a return higher than the companys weighted average cost of capital. This is an important milestone in its history.Surging aheadThis year Tanishq has toppled its parent brand to take the top slot in the internal-revenues sweepstakes. The divisions contribution to Titan is expected to increase from the current 43 per cent to 55 per cent by 2007.The excitement and enthusiasm at Tanishqs headquarters in Bangalore is palpable. With this dramatic swivel towards success, the division has effectively silenced sceptics who had predicted it would be impossible for an entity in the jewellery business to make profits through legitimate means.Far from resting on its laurels, Tanishq is looking forward to the next milestone. The challenge now is to, by 2007-08, double turnover to Rs 1200 crore and multiply profits to Rs 50 crore. A recent review by McKinsey states that Tanishqs jewellery business is on firm ground. The reasons: first-mover advantage (the pioneer part has its benefits); a

scalable national model in organized retailing; and an increasing contribution to Titans revenues.Designs on womenThe Rs 80,000-crore jewellery business in India is fragmented and ruled by traditional local players. For Tanishq to be able to break the stranglehold, it had to find a way to connect with the need for finely crafted jewellery at affordable prices. Previously, Tanishq was positioned as an international jewellery brand for the Indian elite. This meant it catered to a niche market; the masses were ignored. Moreover, its Italian designs in 18-carat, mostly studded jewellery did not go down well with the traditional Indian woman, used as she was to 22-carat jewellery.Given this reality, design was back in focus at Tanishq but with a difference. Abandoning its westernized look from the past, head designer Elizabeth Mathan and her team chose to work on a fusion of contemporary and traditional Indian motifs. Says Mathan, "Our primary customer is the young Indian woman, who has a modern, contemporary outlook towards life but is still firmly rooted in her traditional Indian values." Tanishq Aria was the first line to be launched with the new concept. It gave a fresh perspective to the traditional seven stone setting. It was a great success. Then, came Diva, which combined the brilliance of diamonds with the soft luminosity of pearls. Another success.Looking back, Bhaskar Bhat, managing director, Titan says, "Our biggest change was targeting the mainstream Indian customer. The introduction of 22-carat plain jewellery was the first step in getting us where we are today." The range was strikingly different from the standard fare available in the market, yet it was traditional. The lightweight collection looked heavy, but felt light, just under 25 gm. This met the working womans growing need for great-looking and beautiful jewellery that was affordable and extremely comfortable to wear.Innovative collectionsThe production process was made more flexible. New Japanese manufacturing machines were introduced at Tanishqs Hosur plant. The emphasis turned to customer demands across all segments and surveys were conducted to tweak business strategies."We have to meet a relevant consumer need," explains Saroja Y. L., the divisions group manager, "so when we develop strategies for any marketing program our core philosophy is to link it with a particular consumer need, felt or otherwise, and then bring it to light in the most evocative way possible." Collection G and Tanishq Solo are examples of this doctrine.

Surveys showed work-wear jewellery to be a dilemma for the working woman. Tanishqs Collection G 9 to 5 range, with its modern, innovative designs, marked the first-ever collection custom-made to suit their requirements. Unique finishes and different textures, as well as a contemporary touch gave a distinctive look to the jewellery crafted in pure 22-carat gold. Moreover, it also addressed the homemakers need for everyday-wear jewellery. The entry points for the collection was just Rs 595, with more than 90 unique designs, including earring-pendant sets, neckwear, bangles, bracelets, chains and rings. The concept took the market by storm.Likewise, solitaires were a womans dream. But solitaires were perceived to be the sole preserve of the upper middle class, as only diamonds above 40 cents were considered solitaires. Tanishq debunked the myth and launched an exclusive brand of solitaire diamonds Solo, priced at Rs 7,500 and upwards.

"Taking a fresh look at our brand exercise meant challenging the existing order in the marketplace and taking bold, if risky, business decisions. Today we have successfully democratized luxury and fashion in jewellery and by making the best of designs accessible to a wide segment of Indian women. In 2002 more than 1 million Indian women shopped at Tanishq, a fact thats testimony to the brands broad appeal, and an indicator of its success in enabling consumers to access higher levels of quality," reveals Mr. Harish Bhat.Market mantraCustomer acquisition meant employing innovative marketing initiatives. Like some players in the apparel industry, it decided to launch an innovative collection in every quarter of the year to encourage customers to frequent the stores. The path-breaking 'impure to pure exchange' enabled customers to exchange impure gold for 22-carat gold.During the offer period, customers could go to the Tanishq showroom and get a free gold purity check done on a 'Karatmeter' (an internationally acclaimed device for purity checking). Even if they find their jewellery to be less than 22c (up 19 carat pure), they could exchange it for Tanishqs certified jewellery.Customer Policy Of Tanishq

The response was tremendous. Most of our strategy has revolved around breaking the bond of customers with their jeweller by building on the weakness of the jeweller and on our strengths, Which explains why Tanishq is now synonymous with trust and purity, and is perceived as a leader in jewellery design in India?Over the last three years it has worked overtime to make its boutiques far more productive and responsive to consumer needs; they were made the centre stage of all marketing activity. Tanishq is the only national jeweller in India with an unmatched consumer reach through 62 exclusive boutiques in 47 cities.In India, gold buying is still to mark special occasions like festivals, anniversaries and auspicious days like akshaya tritiya. So, whether it was Varalakshmi Puja in Andhra Pradesh, Durga Puja in Bengal, Onam in Kerala or Karva Chauth in the north, the company celebrated it with its customers in the right cultural spirit.Tanishq is today perceived as a design leader in jewellery; as a distinct, fashionable brand which defines trends in jewellery; as a retail brand which offers an elegant, clearly differentiated shopping experience which is quite unique in this category. The whole discussion is figured below:

Consumer Decision Making - A Simple ModelInputProcessOutputMarketing efforts+Sociocultural environmentConsumer decision makingPostdecision behaviourPurchasePostpurchase evaluation1. Trial; 2. Repeat purchaseExperiencePsychological field1.Need recognition2.Pre-search3.AlternativesMotivation, perception, learnings, attitudeConsumer decision makingProduct, promotion, price, place/channelsFamily, informal sources, social classes, culturalExternal influences

Thus in purchasing jewellery by the customers, they are driven by both external and internal influences. External influences include, Marketing efforts by the company as the Input, Consumer Decision Making as the Process and the Purchase as the Output.Here we can take the input to external influences as socio cultural environment also which include information from family, social groups, informal sources etc. The decision making, which is the process, is purely psychological as the customer internally analyses about the product and its pricing. If required, they take the help of old customers of Tanishq to judge their satisfaction level with the product. The output deals in purchase and post purchase evaluation, where they mentally analyze whether the jewellery set which they bought, worth their hard earned money? Whether they got the best piece compared to the other jewellery shops? Etc

TANISHQ IN WEST BENGALTanishq as a brand is a new entry to Calcutta and especially to West Bengal wedding market. Customers are generally inclined to the local jewelry stores for their wedding marketing. They often get cheated in terms of low quality of gold (18 carats) which they are unaware of. Tanishq wants to launch themselves in this market which is a huge potential with 100% pure gold (22 carats) and a wide range of wedding collections at an affordable price. In this respect we are formulating out strategies to tap this market in terms of tie ups with various wedding accessory shops like saris, beauty salons, marriage registration bureaus etc and also in terms of road shows in West Bengal where we do not have stores. Titan Industries Limited is planning to open up two new stores of Tanishq brand of jewelleries in New Alipore and Rajarhat. Also the company is planning to target the wedding market in Calcutta during the upcoming wedding season spanning three months (April, May, and June). Tanishq has opened first-of-its-kind concept store at Fort Knox, the exclusive jewellery mall on Camac Street, Kolkata. This anchor store reflects the new retail identity of Tanishq the 'Revitaliser of Tradition'. Tanishq has taken this retail initiative from Kolkata since the city embodies Tanishq's retail idea of combining the grandeur of the past with the reality of the present without losing its inherent character and appeal. Also it has two other stores in Gariahat and Kankurgachi.The introduction of the idea of a concept store is a move to catapult Tanishq's unique brand identity in the retail space and take jewellery retailing in India to a new level. The concept stores will take Tanishq closer to making it the complete jewellery brand catering to varying consumer needs and tastes across all consumer segments and also provide customers a unique and innovative buying experience.Study is undertaken for identifying the potential customers who will be interested in visiting the fourth retail showroom in New Alipore. Primary research has been conducted

to collect data from the respondents on the basis of questionnaire. Study is conclusive in nature. Since here the research objectives are clearly specified and information needs are listed out. This conclusive research provides information that helps the manager to evaluate and select a course of action. Conclusive research provides the relevant information to help the manager arrive at a decision. It is characterized by formal research procedure. The research is statistical in design. Statistical method is the most widely used method in marketing research. It makes use of techniques that vary from simple means and percentages to very sophisticated techniques. Statistical tools are used by most marketing research professionals to understand the dynamics of the market. Data are usually collected through observation and thorough interviewing.

The statistical method has certain advantages: Statistical methods can be used for mass data. Two different researches using the statistical research will arrive at the same result. Statistical study helps the researchers to make accurate generalizations. If the sampling is properly done, generalizations will be true.Data Collection Methods:Primary Collection Method: Primary sources are used for data collection. Primary data collections are given more importance over secondary data collections because secondary data collections because secondary data are collected for some purpose other than helping to solve the current problems whereas primary data are collected exclusively to help solve the problems at hand. This exclusively proves that the primary data are focused towards the problem. Hence primary research is conducted and not the secondary research. Survey research is used for gathering primary data. It is the systematic gathering of information from respondents for the purpose of understanding and predicting some aspect of the behavior of the population of interest. The population of interest is the residents of Behala and New Alipore mainly and also the residents of surrounding areas. Within the survey method, personal interview technique is used. Respondents are

personally approached at their residence and interviewed in front of shops like Raymonds, Hyundai etc. Information is collected in a face to face situation. Personal interviews are flexible enough and in-depth information can be obtained from the respondent. It is been because of the requirement of detailed and vivid information that personal interview method is chosen. Respondents are approached with a structured questionnaire and information is collected accordingly.Sampling constitutes an important step in data collection process. Sampling is the process of selecting a representative part of the population, studying it and thereby drawing conclusions about the population from which it has been drawn. Most marketing studies involve a sample or the subgroup of the population relevant to the problem, rather than a census of the entire group. This market research project is also no exception to the sampling rule. My project was centered on the residents of New Alipore and Behala and the adjacent areas. Of all the residents present in the concerned areas, only sixty of them were randomly selected. Simple random sampling methods are used to select the sample units where each member in the population has an equal chance of being selected in the sample. Probabilistic sampling method is used where the members of the sample are selected by chance and there is a known chance of each unit being selected. These sixty sample units constitute representative sample of the entire sample frame. Though the size is small, it is representative enough to give the required information albeit with some uncertainty within the given resource constraints, financial and temporal constraint.

Tanishq And The Great Indian WeddingA RESEARCH

TRADITIONAL management theory owes its origin to the West. Theories like `core competence' and maxims such as `stick to your knitting' owe their beginnings to the environment in which they were conceived. They have been conceptualized in mature economies that struggle with minimal growth. And they have considerable relevance there too. And yet India (and China too) is different. These economies are booming. To succeed here, one needs thinking and execution that are significantly different. Insights into the consumer in nations with over a billion people. While mature economies were losing their fascination with brands and branding, India in the Nineties was just savoring the pleasures and reassurances of quality that branding provided. Commodities such as salt, sugar and rice were being branded and Titan said, "Why not jewellery?" and that led to the launch of Tanishq. Ten years later, Tanishq is a Rs 725-crore brand, growing cumulatively at over 30 per cent over the last few years. And if that isn't a fairy tale success story, one wonders what is. The Tiffany's of the East Tanishq did not have a great start, though. It was party wear, nightwear, for liberated women, well-designed certainly, but ahead of its time. The market reaction was lukewarm. But Tanishq, all said and done, was from the Tatas. The cornerstone of the Tata brand has been, and will always be, trust. In an industry which had jewelers who were capitalizing on the consumers' gullibility, Titan realized it could capitalize on its own ethical practices and expose some of its less ethical competition through its karat meter and its advertising which planted doubts in consumers' minds, with ads like, "Are you sure your gold is pure?" That definitely created a stir in the market and more significantly in the consumer's mind. The consumer stopped to think, and more importantly, buy - Tanishq. Nor was this all. Tanishq quickly used its knowledge of the Indian consumer and retailing to extend its franchisee network through the length and the breadth of this country. The traditional jeweler dominated his neighborhood and hometown. Some jewelers have moved out of the safety of their own loyal set of local consumers. Tanishq also believes that retail consumer experience could be the key. Traditional jewelers, even as they display skepticism about this strategy, are quietly and quickly improving the ambience of their own stores. Nor has this been all. Tanishq has constantly improved its collection and jewellery range. Aria, a range inspired by the traditional seven-stone floral motif, Hoopla (diamond hoops), Lightweight Colors, Aamra and Aarka have followed each other to increase market share and lighten the consumers' wallet. And yet, it is important to remember that the jewellery market in India is Rs 55,000 crore and Tanishq, despite its healthy growth and high profitability, is a small player. This, of course, is the typical case of the glass being half empty or half full and how one views it. Tanishq, one believes, views the situation extremely positively and believes that it is sitting on a potential gold mine.

The changing consumerOne of the key questions any brand needs to ask is, "Who is our key consumer? To whom are we talking?" Tanishq has clearly realized that the Indian woman is changing. And how! She is far better-educated, is working, lives in a nuclear family in a structure that is far more liberal and leads a high wattage life. She has legitimate space for herself. She is no longer satisfied with playing pre-defined rigid roles of sister, mother, wife but is choosing her own role and playing it the way she wants to. As a consequence she is retrieving space (that she believes genuinely belongs to her) without conquering it. She is using tradition rather than being used by it. Yes, the `I factor' works for the Indian woman and this is what Tanishq attempts to address in its advertising and its product offerings too. And that's the twist to the traditional Indian woman. She is traditional alright ... will act out multiple roles that are required of her - but is an individual in every sense of the word. She will do her own thing - quietly. And this is the potential bus that the traditional Indian jeweler might miss, used as he is to people buying jewellery coming to the outlet in a large group - mother-in-law, father-in-law, daughter-in-law, husband, children in tow - diffusing the power of the individual. But Tanishq believes in the power of the individual. And probably that is the way to go. Back to tradition Perhaps the most significant shift in Tanishq's marketing strategy has been in its product line. From what was essentially `western wear it moved to `party wears' and then to `jewellery watches' and now has progressed to more serious, traditional stuff. Because of the realization that when it comes to jewellery, the Indian woman, despite all her modernity is pretty traditional. She prefers gold and will buy it, like her mother did before her. But unlike her mother who might have bought it as an investment, she buys it as an adornment. She knows the value of festivals such as Dhan Teras and the importance of weddings in the Indian milieu. She will know that she is going to be watched and evaluated. She cannot afford to be seen as flippant. This is the subtle change in Tanishq's product offering. It's a lot more traditional - like the line created for the movie Paheli. Tanishq also realized that India buys heavily during the wedding season. And its collections and range are gearing up for this great, big opportunity in the Indian market.

Twist and turns ahead Notwithstanding its success, people continue to buy from traditional jewelers. Jewelers such as GR Thanga Maligai, Krishniah Chetty, Ganjam and Tribhovandas Bhimji Zaveri have their own set of loyal customers who buy regularly and in large volumes. Their strength is that they know their consumer intimately, for generations. This, they believe, is their distinctive difference. Tanishq knows its limitations. It is easier to have an overview of broad consumer trends and capitalize on opportunities that present themselves rather than worry about a small group of customers, as valuable as they may be, as they are reasonably loyal too. And yet the pot of gold could be in the young `double income and no kids' Indian family which doesn't think twice about buying expensive designer jewellery for Rs 20,000. Advertising and imagery helps, though a contemporary product line doesn't hurt either. And one suspects that while Tanishq may currently be scoring in the smaller towns where its competition is not so well entrenched, it must win share and customers from the big traditional jewelers in Mumbai, Delhi and Chennai. Yes, people will continue to buy jewellery and with increased affluence - lots of it. Tanishq, a decade after its founding, is poised to do even better. And the pampered Indian consumer

Page 18