Financial Daily from THE HINDU group of publications
Tuesday, Sep 30, 2003
Financial Daily from THE HINDU group of publications Tuesday, Sep 30, 2003 |
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Marketing
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Advertising Corporate - Outlook Tanishq targets Rs 800-cr biz in three years Neha Kaushik
New Delhi , Sept. 29 BANKING on the Indian woman's penchant for gold jewellery, Tanishq is targeting to double its turnover in the next three years to Rs 800 crore. After three continuous years of posting losses, the company has turned around during last fiscal. Planning to cash in on the approaching festive season, Tanishq is in the process of launching several new collections and has also upped its advertising expenditure for the year. "We have increased our advertising budget to four to five per cent of our business revenues from the earlier 3.5 per cent", Mr Harish Bhat, Chief Operating Officer, Tanishq said. Further, the company has also rolled out a new campaign on the electronic medium after a gap of three years. "More than 35 per cent of all jewellery sales happen in the festive season. We have not taken the TV route for quite some time now, however we have launched a national-level TV campaign for the festive season in English, Hindi, and the vernacular languages. The TV campaign, which has been designed by Lowe India, showcases the various emotions that are associated with Tanishq jewellery. For instance, when a woman buys jewellery, she feels joyful or when one views jewellery in a showroom, there is an element of wonder. Tanishq, through the campaign, seeks to develop an emotional connect with the consumer", says Mr Bhat. Further, Tanishq's new festive collection comprises the Ethnic gold, Enamel and Diamonds, Paisley and Coloured Stones. According to Mr Bhat, Tanishq is also putting in place a new organisational structure modelled along the lines of world-class retailing organisations. "We have set up different teams to look at the various functions such as marketing, fashion, sourcing and manufacturing, and integrated supply chain management", he said. The company is targeting to increase its retail network from the current 63 outlets (spread across 49 towns) to 75 in three years. Test marketing bags under FQ
TANISHQ is experimenting with different categories through a sub-brand called FQ or fashion quotient. After test marketing jewellery made of silver and other metals (except gold and platinum) under FQ, the company has introduced bags under the FQ brand. Says Mr Bhat, "FQ is meant for a much younger audience and is very much in the experimentation stage. We have been retailing the FQ brand in larger retail stores like Shoppers Stop. It is too early to say what targets we have set out for the brand, but the scope for experimentation with jewellery is immense". Interestingly, FQ is not being associated with brand Tanishq in any manner. "With Tanishq we are not looking to diversify beyond the jewellery span. The jewellery market in India is estimated at about Rs 40,000-45,000 crore and the potential to capture a large space in the segment is immense", Mr Bhat says.
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