The reason for failure of Tanishq in the initial phase was that the company followed a ‘selling’ concept. They made the product first and then tried to sell it. The consumer preference was not considered while designing the 18 karat jewellery. * Both the brands Tanishq and Gold Plus focus on differentiated market segments. While Tanishq focuses on the modern Indian women living in urban areas, Gold Plus focuses on people with more traditional outlook living in rural and semi urban areas.
There is not overlapping in the target market for these 2 brands * The market for exquisite modern jewellery will grow with the changing consumer tastes. Tanishq can take this opportunity to make profits. Since it has already an established player in this market it can leverage on this and take advantage of its experience. * The company can go ahead with both models with proper segmentation. Within each sub- brand the company can focus on the 5 psychographic variables as already identified by it.
In case of semi urban areas the company can conduct proper market research and then decide which model would work best. The Gold Plus can concentrate more on traditional pieces in tune with the local demand while Tanishq can concentrate on the niche market in urban areas as per the psychographic variables it identified. * Tanishq can also come up with Savings schemes to attract the people who think that it is not affordable for them. They can concentrate on some lower end designs to target this category. * Success of Gold Plus indicates that this model can be successfully launched in rural and semi urban areas.
Ratlam was chosen to test it on a market where the success would probably be not that high. Considering that Titan and Tanishq are not making high profits as of now Gold Plus can generate the surplus required to keep them afloat. The locations should be chosen with greater care after conducting sufficient market research and the services should be customized. * Specialty good. * Maybe consumer dissonance reducing or ego centric behavior. High involvement( not sure about brand perception) mayb u can add a slide on analyzing the market behaviour