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HISTORY .......................................................................................................................................................... 5
SOCIAL INSTITUTIONS ...................................................................................................................................... 6
POLITICAL SYSTEM ................................................................................................................................... 7
ILEGAL SYSTEM ........................................................................................................................................ 7
SOCIAL ORGANIZATIONS ................................................................................................................................... 8
ITALIAN FAMILY VALUES .......................................................................................................................... 8
RELIGION AND AESTHETICS ...................................................................................................................... 9
DIET AND NUTRITION ............................................................................................................................ 10
RECREATION, SPORTS, AND OTHER LEISURE ACTIVITIES .......................................................................... 11
HEALTH CARE ........................................................................................................................................ 11
LANGUAGE ............................................................................................................................................ 11
DEVELOPMENTS IN SCIENCE AND TECHNOLOGY ............................................................................................. 15
CHANNELS OF DISTRIBUTION ......................................................................................................................... 17
MEDIA .......................................................................................................................................................... 19
JEWELLERY MARKET IN ITALY ......................................................................................................................... 21
MARKET STRENGHTS AND POTENTIAL.................................................................................................... 23
MARKET TRENDS AND PREFERENCES ..................................................................................................... 23
COMPETITION DISTRIBUTION NETWORK ................................................................................................ 23
TANISHQ – COMPANY PROFILE ...................................................................................................................... 24
PRESENCE IN INTERNATIONAL MARKET ................................................................................................. 24
THE PRODUCT – TANISHQ MMMMMMMMIIIIIIIIAAAAAAAA ........................................................................................................................ 25
TAG LINE ............................................................................................................................................... 25
PRODUCT ADAPTION AND MODIFICATION ..................................................................................................... 28
MARKET DEVELOPMENT AND ASSESMENT – DISTRIBUTION STRATEGY ........................................................... 29
PROCESS ....................................................................................................................................................... 29
MICHEAL PORTER’S 5 FORCES MODEL ............................................................................................................ 30
PROMOTION AND LANCH PLAN ..................................................................................................................... 31
TERMS OF CONTRACT .................................................................................................................................... 32
The gold industry of Italy has a long history. It can be traced back to almost 3,000 years ago. Among the world’s largest
gold industries is the one found in Italy. The Italian gold industry’s sheer size leads to the production of almost 500
tons of pure gold every year.
Numerous corporations dealing with gold in Italy focus their operations in five specific Italian regions making the areas
well known for gold production. These areas include Tuscany, Veneto, Piedmont, Campania and Lombardy. However,
the records and findings show that manufacture of fine gold jewellery in Italy was started by the people of Tuscany,
who were known as Etruscans at that time. Much of their exquisite work has been found and is exhibited in various
museums. Their intricate designs were breathtakingly wonderful. They are well loved even today and are painstakingly
duplicated to preserve the majestic Italian heritage.
Italy has contributed to the making of high quality gold jewellery for many years in Europe. The Italian jewellery has
quality gold content, pleasing and attractive designs and craftsmanship that is hard to match. This leads to the
production of perfect jewellery.
Italian jewellery is still well liked throughout the world, however in the recent years Italian jewelers have been facing
humongous competition from top gold product producer status based out of China, India and Turkey.
Eighteen-carat gold is the form of gold most frequently used in Italy. However, Italians also use higher carat gold. They
utilize various gold colors like the basic yellow and white colors in addition to gold with two or three color tones.
Italy has the reputation of producing numerous types of jewellery such as necklaces, bracelets, rings, anklets, bangles,
brooches and charms. However, Italy also makes religious jewellery that is appropriate for many religious people.
These types of jewellery refer to items such as Christian roses, saint medallions, gold crosses, catholic crucifixes as well
as Celtic jewellery among other types of religious jewellery.
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A. HISTORY Italy gained its present-day single political identity only in 1861 but varieties of people have lived in the region from the early ages. The Etruscans were the first people to rule the peninsula around the 8th century BC and were eventually overrun by the Roman Empire. The ancient Greeks also set up a few colonies along the southern coast.
The first Roman Republic was founded in 509 BC and driven by strong, military and dictatorial monarchs, the empire expanded into many parts of Europe and beyond and grew so large that it was eventually divided into eastern and western sectors. However, as often happens with nations driven by the politics of greed, this power proved unsustainable in the long term. Plague, famine and foreign incursions drove the Roman empire into the dark ages, a terrible time of continual invasions by the Lombards, Muslims and Normans till the tumultuous brew settled somewhat in the 12th century.
The rise of cities and a merchant class led to the Renaissance in the 15th century during which painters, architects, poets, philosophers and sculptors produced works of genius that prevail till today. In the next few centuries, Spain, Austria and France had their turns at controlling the peninsula until Italy was unified in 1861.
Industrialization and modernization increased through the 19th century but Italy’s participation in WWI extracted a heavy price. Economic and political instability made it easy for Benito Mussolini to seize power and establish his dark, fascist reign over the country in 1922. The Fascist movement lasted for 21 years during which a totalitarian regime was put into place and earlier ties with France and the United Kingdom gave way to an alliance with Nazi Germany. Italy was defeated by the Allied forces in WWII and liberated from fascism by a national uprising on 25 April 1945. Italy became a Republic after the result of a popular referendum held on 2 June 1946.
B. GEOGRAPHICAL SETTING
Location Southern Europe, a peninsula extending into the central Mediterranean Sea, northeast of Tunisia
Geographic Coordinates 42 50 N, 12 50 E
Area total: 301,230 Sq.Km land: 294,020 Sq.Km water: 7,210 Sq.Km includes Sardinia and Sicily
Land boundaries total: 1,932.2 km border countries: Austria 430 km, France 488 km, Holy See (Vatican City) 3.2 km, San Marino 39 km, Slovenia 232 km, Switzerland 740 km
Coastline 7,600 km
Climate predominantly Mediterranean; Alpine in far north; hot, dry in south
Terrain mostly rugged and mountainous; some plains, coastal lowlands
Elevation extremes lowest point: Mediterranean Sea 0 m highest point: Mont Blanc (Monte Bianco) de Courmayeur 4,748 m (a secondary peak of Mont Blanc)
Natural resources coal, mercury, zinc, potash, marble, barite, asbestos, pumice, fluorospar, feldspar, pyrite (sulfur), natural gas and crude oil reserves, fish, arable land
Irrigated land 26,980 sq km (1998 est.)
Natural hazards regional risks include landslides, mudflows, avalanches, earthquakes, volcanic eruptions, flooding, land subsidence in Venice
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C. SOCIAL INSTITUTIONS
I. Family
� Parental roles
Italian men contribute very little to housework and childcare. The relations between husband and wife within the family are still very traditional, with a rigid separation of gender roles. Even children are asked to do very little housework, and gender differences are still present in the expectations of sons and daughters in helping with the housework: Boys are asked and expected to do less housework, have more freedom, and are less controlled by parents than are girls.
� Marriage and courtship
- Women's traditional role of wife and mother is no longer appealing, and young housewives perceive their situation more as a necessity than as a choice.
- Working mothers declare themselves more satisfied than housewives and mothers, although they are weighed down by an enormous amount of work
- The relations between husband and wife within the family are still very traditional, with a rigid separation of gender roles.
- That Italian men contribute very little to housework and childcare may partially explain why Italy is experiencing a strong reduction in the number of children per couple among young couples.
- The rigidity of the Italian labor market makes it extremely difficult, if not impossible, for mothers with young children to re-enter the job market, even after only a few years out.
- These mothers are not attractive to employers, who prefer men or childless women. Furthermore, part-time jobs are not common, and families have serious difficulties in living on only one salary. Therefore, the reproductive strategies of Italian families have changed, drastically reducing the number of children.
II. Education At present the Italian school system is divided into three parts:
- Primary school (Scuole Elementare)
- Lower secondary (Scuola media)
- Upper secondary school (Scuola Superiore)
State school in Italy is free until the end of primary education. School in Italy is compulsory until the age of 16.
The Ministry of Education, Universities and Research (Ministero dell'Universit+á e della Ricerca) is responsible for administration of state schools in Italy.
The period of compulsory education lasts for nine years and consists of primary school and secondary school in all regions.
The Italian school year usually runs from mid-September to the end of June. School hours can vary from region to region and can be five or six, full or half days.
The Italian Higher Education System
� Italian higher education is structured in a binary system, consisting of two main articulations:
- the university sector
- the non-university sector.
� At present, the university sector is made up of 89 university institutions which are classified in:
- 58 State universities
- 17 non-State universities (legally recognised by the State)
- 2 universities for foreigner
- 6 higher schools specialised in postgraduate university studies
- 6 telematic universities.
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� The non-university sector includes 4 education typologies with their institutions:
- higher schools of design: polytechnics for the arts, academies of fine arts, higher institutes for applied arts, music conservatories and recognised music institutes, higher institutes for musical and choreographic studies, national academies
- higher education in language mediation: higher schools for language mediators
- higher integrated education (FIS): programmes of higher technical education & training (IFTS)
- a few specific fields (e.g. archiving, diplomatic, restoration, military studies, etc.) which, along with their respective institutions, fall under the supervision of ministries other than that of Education.
III. Political system
Italy adopted a new constitution in 1948 after the traumatic experience of Mussolini's fascism and the Second World War. Unusually the two Houses of the Italian Parliament possess the same rights and powers - a particular form of parliamentary democracy known as perfect bicameralism. However, this is far from being the only oddity of the Italian political system.
Italy is something of an aberration in the democratic sweep of Europe. For decades, it somehow combined the maintenance of the same political party in power with constant changes of government while, in more recent years, it has witnessed a fundamental transformation in the pattern of political parties and this process is still in flux.
Meanwhile, in recent years, the electoral system has been changed frequently and substantially and the current version is both immensely complex and hugely controversial.
Politics in Italy is constantly beset with scandal and corruption and, for so long, it has seemed astonishing that the Italian economic system could be so robust, when the Italian political system has been so chaotic. It was inevitable that, sooner or later, the weaknesses in the poiltical system would translate into problems for the economic system and so it proved in the Eurozone crisis of 2011.
The Italian President of the Republic heads the armed forces and has powers to veto legislation, disband parliament and call elections. He nominates the senior Government minister, called the President of the Council (equivalent to the British Prime Minister). The current President of the Republic is Giorgio Napolitano who is a former Communist Party member.
It is the President of the Council who proposes the other ministers (formally named by the
President). The Government ministers make up the Council of Ministers. Vice-ministers - called
“Sottosegretari” (Undersecretaries) - are not formal members of the Council. In Italy, anyone can be
appointed a minister, with no requirement to be a member of the Parliament or a political party.
The lower house in the Italian political system is the Chamber of Deputies. It has 630 members elected
by all Italian citizens older than 18.
The upper house in the Italian political system is the Senate. It has 315 members elected by all Italian
citizens older than 25 years.309 members are elected by a system of proportional representation system
based upon party lists for the 20 regions of Italy.
After the end of the Second World War, Italian politics - and even more so its government – was
dominated by a single political party Democrazia Cristiana (DC - Christian-Democrats) for more than
forty years, while the opposition was led by the Italian Communist Party (PCI). The third important party
was the Italian Socialist Party (PSI).Accordingly, in the period 1946-1992, there were no less than 28
governments and all but two of them were headed by a Christian Democrat.
IV. Legal system
The Constitutional Court of Italy is the country's supreme court. It is composed of 15 judges: one-third appointed by the President, one-third elected by the Parliament, and one-third elected by the ordinary and administrative supreme courts. The Constitutional Court is a post-war innovation. The other senior
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court is the Court of Cassation.
Given the conflict and corruption in the Italian political system, the courts in Italy find themselves
embroiled in political issues in a manner largely unknown elsewhere in Europe.
D. SOCIAL ORGANIZATIONS
There is a vast difference in wealth between the north and the south. There are also the usual social classes
that are found in industrial society. Italy has a high unemployment rate, and differences between rich and
poor are noticeable. New immigrants stand out since they come from poorer countries. The government has
had a vast social welfare network that has been cut in recent years to fit the requirements of the European
Union. These budget cuts have fallen on the poorer strata of society.
I. Symbols of Social Stratification
Speech is a social boundary marker in Italy. The more education and "breeding" a person has, the closer
that person's speech comes to the national language and differs from a dialect. Style of dress, choice of
food and recreation, and other boundary markers also prevail. Clothes from Armani, Versace, and other
fashion designers are beyond the reach of the poor. There is a difference also in what food one eats,
certain food being more prestigious, such as veal or steak, than others. Although pasta and bread are still
staples for all classes, it is what else and in what quantity meat is available that marks social classes.
II. Leisure and the manner in which it is spent are also class boundary markers
The more leisure and the great the amount of travel mark off groups from each other. The more private
the beaches, the longer the siesta, the more opulent the family villa, the greater the prestige. Soccer is for
everyone, but more expensive entertainment is restricted by cost.
Italian Family Values
- The family is the centre of the social structure and provides a stabilizing influence for its members. - In the north, generally only the nuclear family lives together; while in the south, the extended family
often resides together in one house.
E. The family provides both emotional and financial support to its members.
E. BUSINESS CUSTOMS AND PRACTICES
I. Relationships & Communication
- Italians prefer to do business with people they know and trust. - A third party introduction will go a long way in providing an initial platform from which to work. - Italians much prefer face-to-face contact, so it is important to spend time in Italy developing the
relationship. - Your business colleagues will be eager to know something about you as a person before conducting
business with you. - Demeanor is important as Italians judge people on appearances and the first impression you make
will be a lasting one. - Italians are intuitive. Therefore, make an effort to ensure that your Italians colleagues like and trust
you. - Networking can be an almost full-time occupation in Italy. Personal contacts allow people to get
ahead. - Take the time to ask questions about your business colleagues family and personal interests, as this
helps build the relationship
- Italians are extremely expressive communicators. They tend to be wordy, eloquent, emotional, and demonstrative, often using facial and hand gestures to prove their point.
II. Business Meeting Etiquette
- Appointments are mandatory and should be made in writing (in Italian) 2 to 3 weeks in advance.
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- Reconfirm the meeting by telephone or fax (again in Italian). - Many companies are closed in August, and if they are open many Italians take vacations at this time,
so it is best not to try to schedule meetings then. - In the north, punctuality is viewed as a virtue and your business associates will most likely be on
time. - The goal of the initial meeting is to develop a sense of respect and trust with your Italian business
colleagues. - Have all your printed material available in both English and Italian. - Hire an interpreter if you are not fluent in Italian. - It is common to be interrupted while speaking or for several people to speak at once. - People often raise their voice to be heard over other speakers, not because they are angry. - Although written agendas are frequently provided, they may not be followed. They serve as a
jumping off point for further discussions. - Decisions are not reached in meetings. Meetings are meant for a free flow of ideas and to let everyone
have their say.
III. Business Negotiation
- In the north, people are direct, see time as money, and get down to business after only a brief period of social talk.
- In the south, people take a more leisurely approach to life and want to get to know the people with whom they do business.
- Allow your Italian business colleagues to set the pace for your negotiations. Follow their lead as to when it is appropriate to move from social to business discussions.
- Italians prefer to do business with high-ranking people. - Hierarchy is the cornerstone of Italian business. Italians respect power and age. - Negotiations are often protracted. - Never use high-pressure sales tactics. - Always adhere to your verbal agreements. Failing to follow through on a commitment will destroy a
business relationship. - Heated debates and arguments often erupt in meetings. This is simply a function of the free-flow of
ideas. - Haggling over price and delivery date is common. - Decisions are often based more on how you are viewed by the other party than on concrete business
objectives.
IV. Dress Etiquette
- Dressing well is a priority in Italy. - Men should wear dark coloured, conservative business suits. - Women should wear either business suits or conservative dresses. - Elegant accessories are equally important for men and women.
V. Business Cards
- Business cards are exchanged after the formal introduction. - To demonstrate proper respect for the other person, look closely at their business card before
putting it in your card holder. - It is a good idea to have one side of your business card translated into Italian. - If you have a graduate degree, include it on your business card.
- Make sure your title is on your card. Italians like knowing how you fit within your organization.
F. RELIGION AND AESTHETICS
Roman Catholic 90% (approximately; about one-third practicing), other 10% (includes mature Protestant
and Jewish communities and a growing Muslim immigrant community)
- The primary religion in Italy is Roman Catholic. There are more Catholic churches per capita in Italy than in any other country.
- Although church attendance is relatively low, the influence of the church is still high.
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- Many office buildings will have a cross or a religious statue in the lobby. - Each day of the year has at least one patron saint associated with it. - Children are named for a particular saint and celebrate their saint's day as if it were their own
birthday. - Each trade and profession has a patron saint. - The church promulgates hierarchy, which can be seen in all Italian relationships.
- They respect and defer to those who are older, those who have achieved a level of business success,
and those who come from well-connected families.
G. DIET AND NUTRITION
Food is a means for establishing and maintaining ties among family and friends. No one who enters an Italian
home should fail to receive an offering of food and drink. Typically, breakfast consists of a hard roll, butter,
strong coffee, and fruit or juice. Traditionally, a large lunch made up the noon meal. Pasta was generally part
of the meal in all regions, along with soup, bread, and perhaps meat or fish. Dinner consisted of leftovers. In
more recent times, the family may use the later meal as a family meal. The custom of the siesta is changing,
and a heavy lunch may no longer be practical.
Although Italians are known throughout the world for pizza, pasta, and tomato sauce, the national diet of Italy
has traditionally differed greatly by region. Prior to the blending of cooking practices among different regions,
it was possible to distinguish Italian cooking simply by the type of cooking fat used: butter was used in the
north, pork fat in the center of the country, and olive oil in the south. Staple dishes in the north were rice and
polenta, and pasta was most popular throughout the south. During the last decades of the twentieth century
(1980s and 1990s), however, pasta and pizza (another traditional southern food) became popular in the
north of Italy. Pasta is more likely to be served with a white cheese sauce in the north and a tomato-based
sauce in the south.
Italians are known for their use of herbs in cooking, especially oregano, basil, thyme, parsley, rosemary, and
sage. Cheese also plays an important role in Italian cuisine. There are more than 400 types of cheese made in
Italy, with Parmesan, mozzarella, and asiago among the best known worldwide. Prosciutto ham, the most
popular ingredient of the Italian antipasto (first course) was first made in Parma, a city that also gave its
name to Parmesan cheese.
H. HOUSING - Living space is tight in Italian cities, which are often geographically constrained because it is built
into, on top of, or between mountains-the kind of urban sprawl you see in the United States simply can't occur in most parts of Italy. Even where there is room to spread out, historically they tended not to. This may be due to centuries of history: Italy was a collection of separate city-states which were often at war with their neighbors; people huddled into fortress towns and cities for safety, and many Italians have never lost this preference for living close together.
- Homes are constructed differently, too. Basic building materials in Italy are concrete, brick, and sometimes stone. In the mountains, some houses are chalet-style, made of thick wooden planks.
- Italians have little or no concept of personal space. Being in close proximity with someone is considered a sign of affection or camaraderie.
- Urban Italians have been living in apartments, condos, and townhouses since Roman times. The apartment building may have been invented in ancient Rome, and even in those days single-family dwellings were only for very rich families.
- Italian cities today are almost entirely apartment buildings, four to five stories tall in mid-sized towns, eight to ten in larger cities.
- The higher up you go, the higher the value of the real estate, because the higher floors get more light
and air and less pollution, and are less susceptible to being robbed.
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I. RECREATION, SPORTS, AND OTHER LEISURE ACTIVITIES
- For a country in which only a small percentage of the population is actively involved in sports, Italy has
produced an impressive number of champions in cycling, skiing, basketball, water polo, volleyball, and
football (soccer).
- Especially popular is football, which some Italian scholars claim was invented in 16th-century Italy
as calcio and introduced at the Palio festivals of Florence and Siena.
- Italian football teams excelled in international play in the 1930s and from the late 1960s onward. The
national team has won the World Cup four times, most recently in 2006.
Automobile racing also is widely popular in Italy, and Italian engineers and drivers have contributed
much to the sport. The Ferrari series of racing cars, first manufactured in 1946, have won more than
5,000 major races and set many world records, as has the rival high-performance car Maserati
- Italian athletes have participated in every modern Olympiad.
J. HEALTH CARE
Italy was a pioneer in modern health care with its medieval centers for medical study. Although modern Italy
has a number of modern doctors and health specialists, it has had a history of healers and potion–makers.
There was a prevalent belief, for example, in people having "healing hands." These people, it was felt, could
heal soreness and broken bones by touch and manipulation. Others could cause disease through incantations
or spells. Various faith healers practiced their arts.
K. LANGUAGE
- Italian (official),
- German (parts of Trentino-Alto Adige region are predominantly German speaking),
- French (small French-speaking minority in Valle d'Aosta region),
- Slovene (Slovene-speaking minority in the Trieste-Gorizia area)
L. ECONOMIC ANALYSIS
Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by
private companies, and a less-developed, welfare-dependent, agricultural south, with high unemployment.
The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by
small and medium-sized enterprises, many of them family owned. Italy also has a sizable underground
economy, which by some estimates accounts for as much as 15% of GDP. These activities are most common
within the agriculture, construction, and service sectors.
Population
Composition 61,016,804 (July 2011 est.) growing at 0.42% country comparison to the
world: 23
Age Structure 0-14 years: 13.8% (male 4,315,292/female 4,124,624)
Unemployment rate 8.4% (2010 est.) country comparison to the world: 97
7.8% (2009 est.)
Population below poverty
line:
NA
Unemployment is a regional issue in Italy--low in the north, high in the south. Italy's unemployment rate,
8.5% in 2010, has crept up as a decade of low growth and the slowing world economy have taken their toll.
Inflation Rates
- Current inflation Italy (CPI Italy) – the inflation is based upon the Italian consumer price index. The index
is a measure of the average price which consumers spend on a market-based "basket" of goods and
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services. Inflation based upon the consumer price index (CPI) is the main inflation indicator in most
countries.
- Current harmonised inflation Italy (HICP Italy) – the harmonised inflation is based upon the Italian
harmonised consumer price index. The index is a measure of the average price which consumers spend
on a for European countries market-based "basket" of goods and services and is published by Eurostat to
compare inflation in European countries
- CPI inflation Italy - 3.26 % as of Nov 2011
- HICP inflation Italy - 3.67 % as of Nov 2011
M. DEVELOPMENTS IN SCIENCE AND TECHNOLOGY
- Italy has a long tradition in science and technology, going back to the Renaissance and the Roman era.
- By the first century AD, Rome had become the biggest and most advanced city in the world. The ancient
Romans came up with new technologies to improve the city's sanitation systems, roads, and buildings.
They developed a system of aqueducts that piped freshwater into the city, and they built sewers that
removed the city's waste.
- Italy had a scientific "golden age" during the Renaissance. Leonardo da Vinci, was trained to be a painter,
but his interests and achievements spread into an astonishing variety of fields that are now considered
scientific specialties. He conceived of ideas vastly ahead of his time. Notably, he invented concepts for the
helicopter, a tank, the use of concentrated solar power, the calculator, a rudimentary theory of plate
tectonics, the double hull, and many others. In addition, he greatly advanced the fields of knowledge in
anatomy, astronomy, civil engineering, optics, and hydrodynamics.
- The scientist Galileo Galilei is called the first modern scientist. His work constitutes a significant break
from that of Aristotle and medieval philosophers and scientists (who were then referred to as "natural
philosophers"). Galileo’s achievements include improvements to the telescope, various astronomical
observations, and initial formulation of the first and second laws of motion. Galileo would become known
as the founder of modern science.
- At present Italy is considered among the most advanced Countries in several fields.
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- S&T POLICY -The Italian Government has addressed the S&T national policy in the 2003-2007 period
through the assessment of new Guidelines (National Research Plans or “PNR-Programma Nazionale per
la Ricerca”.
I. Current technology available (computers, machinery, tools, etc.)
Italy was a European pioneer in high-speed rail and the original home of the 'Pendolino' family of tilting
trains that have been widely adopted in several countries to make best use of conventional (as opposed
to purpose-built high-speed) tracks.
In spite of economic fluctuations, high levels of vehicle ownership, a
well-developed road system and a challenging terrain, the Italian high-
speed rail network has been evolving for many years, with several lines
in various stages of development.
"Italy seems set to establish a European first in the operation of high-
speed trains."
Principal train operator under the public sector Ferrovie dello Stato (FS) umbrella is Trenitalia, which
has been operator since 2000. State bodies have created the prevailing system, although with an
equipment order announced in January 2008, Italy seems set to establish a European first in the operation
of high-speed trains.
II. Information Technology in Italy
The development and status of Information technology in Italy is a complex question. Italians seem to be stuck
with one foot on the shores of a technological oasis and the other in the quagmire of bureaucracy, suspicion and
history. Perhaps this was not so noticeable until now because, historically technology has advanced at a slower
pace, therefore the juxtaposition between the old and the new was not so apparent. Whereas, now technology is
changing at lightening speed making Italy's precarious position more obvious and its next steps increasingly
important. At present, Italy is just beginning to adapt to Internet technology while on the other hand the use of a
cellular phone is already in a mature state.
The intent of this project is to examine Italian information technology in its early developmental stages, its
current reality and its potential growth. We will highlight numerous topics from basic telecommunication
infrastructure to electronic commerce and government policies. After extensive information searches and
analysis, we have developed a mosaic of information that will assist in defining the impacts of the Italian
information technology environment on business.
III. Software Development
Italy's domestic software industry is very small, with the exception of Olivetti and Finsiel. Foreign vendors,
especially from the United States, dominate the standard software products market.
IV. Telecommunications infrastructure
Telecom infrastructure is mainly in the hands of Telecom Italia. Regulatory authority is still evaluating whether
to force the incumbent to unbundle its network, and many would be competitors are still deciding if it would be
better for them to be facility based or not. Telecom Italia has an almost fully digitized circuit-switched network
serving approximately 26 million lines, about 10% of which are ISDN. It has more than two million kilometers
of fibre in the long distance network and about half a million in the access network. Most of the infrastructure
investments are made by Infostrada and Omnitel . Few companies have begun to build their own local
networks, for example in Milan, which has the highest concentration of business activities. City governments
that must authorize digging and putting new lines have been very slow to understand the importance of a new
telecommunications infrastructure.
(Source: ITU Telecommunications Database 1998)
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V. Percentage of GNP invested in research and development
The Research and development expenditure (% of GDP) in Italy was reported at 1.18 in 2008, according
to the World Bank.
VI. Labour cost (per Hour U.S Dollars)
Italian Labour is very costly compared to Indian Labour More than 300% Costly
N. CHANNELS OF DISTRIBUTION
I. Retailers
II. Recent Developments & Trends
- In July 2006 Conforama opened its second store in Italy under its own banner in Affi, near Verona. It
covers a sales area of 5,800 sq m and stocks more than 14,000 lines. The store follows the usual
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Conforama format including discount prices, a clear range architecture and good product availability.
The new layout presents the company’s full range of products and services, including furniture,
electrical and home wares, alongside gardening products and DIY supplies from the Emmezeta range.
In November 2007, it opened a new store in Giugliano near Naples, with 4,790 sq m of retail space.
- IKEA continues its conquest of Italy. The first Italian IKEA store opened its doors to the general
public in 1989 in Milan and the 13th outlet was opened in Bari in February 2007, taking it to 316,000
sq m of sales space. Traffic around the store became gridlocked, as it had in previous years at the
openings of the Padua and Ancona stores. The Swedish giant is now targeting completion of its Italian
network after meeting demand in Germany. At the moment the retailer is opening new stores at a
rate of two each year. IKEA claims 31m out of 57m Italians visited its outlets in 2006. Sales rose by
24.3% to T1.1bn in 2006, much faster than in other countries. Another two openings are planned in
Parma and Rimini in August 2008.
- In November 2006 Spanish retailer Banak Importa opened its 15th outlet in Italy, in Rome. The 600
sq m store, located in the business district, completes the first stage of the company’s expansion into
Italy. Plans for up to 60shops in Italy by the end of 2007 are unfulfilled, with just 18 branches opened
by March 2008. Recent openings include Salerno and Ischia. Similarly, Spanish retailers El Corte
Ingles and Zara Home have targeted Italy. Zara Home expanded into Italy in 2005 and now operates
11 stores in the country, concentrated in the North and around Rome.
III. Wholesale middlemen
- Assembly markets in rural areas have been traditionally built so as to encourage the delivery of fair prices
to farmers. The products on these markets are generally sold through an auction system
- Terminal markets in cities are devoted to encouraging the emergence of fair prices to consumers through
retailers.
- In Italy, sourcing produce through regional suppliers (farmers or wholesalers) is more frequent and this is
also flexible with corporate culture in the different supermarket firms
- In Italy foreign supermarket chains have only just managed to establish a stronghold in certain areas
whereas local supermarkets buy their fresh food from traditional wholesale markets.
IV. Warehousing
Diverse characteristics of Italian retail warehouse markets:
Italy offer the strongest
performance prospects and the
greatest market risk within the
unweighted analysis presented
here.
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O. MEDIA
- The Italian media system entered the new century with a combination of continued reliance on the
traditional printed press and participation in the global shift to new delivery systems, including
online journalism, the spread of personal computers, and digital television.
- Despite increasing reliance on digital technologies in every area of communication in Italy, the term
"press" still mainly connotes the daily newspapers.
I. Availability of media
- Italy’s market for triple play and converging media applications has been strengthened by the
excellent DSL broadband network and the expanding fibre footprint.
- The digital TV market has progressed well, with a number of regions having switched to digital
terrestrial TV and with broadcasters having set up a second DTH satellite platform to compete with
Sky Italia.
- Satellite TV remains the main pay TV platform in the absence of cable TV, while IPTV has an
increasing presence strengthened by upgraded fixed-line delivery networks.
- Italy's heady blend of politics and media has often made headlines at home and abroad, with concern
regularly being expressed over the concentration of media ownership in the hands of one man -
former Prime Minister Silvio Berlusconi.
- Mr Berlusconi's Mediaset empire operates Italy's top
private TV stations, and the public broadcaster, Rai, has
traditionally been subject to political influence, so that
when Mr Berlusconi was prime minister, he was able to
exert tight control over both public and private
broadcasting.
- Between them, Rai and Mediaset dominate Italy's TV market and are a potentially powerful political tool, especially as 80% of the population is said to rely on television for its daily news - the highest percentage in the EU.
II. Costs
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III. Agency assistance & Coverage of various media
The press
- Corriere della Sera - Milan-based, major daily
- La Repubblica - Rome-based daily, owned by L'Espresso group
- Il Messaggero - Rome-based daily
- La Stampa - Turin-based daily, owned by Fiat group
- Il Sole 24 Ore - Milan-based financial daily
Television
- Rai - public, stations include Rai Uno, Rai Due, Rai Tre, rolling news channel Rai News 24 and
cable/satellite services
- Media set - main private TV broadcaster, operates Italia 1, Rete 4 and Canale 5
Radio
- Rai - public, stations include flagship national network Radio 1, entertainment-based Radio 2,
cultural station Radio 3 and parliamentary station GR Parlamento
- Radio 24 - commercial network, news and business
- R101 - commercial network, pop music
- Radio Italia - commercial network, Italian pop music
IV. Percentage of population reached by each of the media
- Rai and Mediaset dominate Italy's TV market and are a potentially powerful political tool, especially
as 80% of the population is said to rely on television for its daily news - the highest percentage in the
EU.
- News Corp-owned Sky Italia has a near-monopoly of the pay-TV sector.
- The Italian press is highly regionalized, reflecting the country's strongly regional history and
character. Milan in particular is home to many dailies and news magazines. Most newspapers are
privately-owned, often linked to a political party or run by a large media group. Newspaper
readership figures are low compared to other European countries.
- Around 2,500 commercial radio stations broadcast in Italy. Some have national coverage; most are
music-based. They share the airwaves with public broadcaster Rai's networks.
- By August 2009 there were 30 million internet users (Internet world stats).
[ITALIAN GOLD MARKET ANALYSIS] GROUP VII
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A. JEWELLERY MARKET IN ITALY Italy is well renowned for its exquisite design and fashion taste. Design is at home in Italy, since they are just
incredible at designing quite about everything: clothes, shoes, purses and what we are most interested in …
jewellery.
The Italian precious jewellery is badly affected by the recession and the rising prices of precious metals (gold,
platinum), more so with respect to its re-exports than is the case for the domestic market. Consumer
confidence is low and people cut their spending on jewellery. Interestingly however the top-tier luxury
market is entirely unaffected, which is also the case in jewellery.
The Italian market for gold jewellery was valued at € 2,970 million in 2010, a -2.6% average annual decrease
since 2006, representing 17.3% of EU market value. This decrease rate was below the EU average of -1.4%.
The high unemployment, public deficit have affected the overall economic climate, and hence the market
performance of Italy is therewith in line with the other 2 major markets, France and, to a lesser extent,
Germany. Italian Gold Jewellery is synonymous with style, and consumers are atoned to the best quality
available with respect to material and high aesthetics and design quality is an absolutely basic prerequisite.
The vast majority of products available in the market are of 18 carat. A jewellery piece for the consumers is
likened to a work of sculpture, and new shapes in novel material combination are highly valued. Products
akin of large scale mass-manufacturing are not seen as desirable.
Most jewellery in Italy is sold as 18 carat or higher yellow gold, in classical designs, usually marked in the
European marking of 750. 9 carat items currently play a marginal role although these are gaining popularity
slowly.
Gold and other precious jewellery plays an important role in traditional (catholic) events such as
christenings, communions, confirmations and weddings, also as a gift. However, a steep 10% drop in
marriages in the first decade of the millennium – mostly due to the lack of sufficient streams of income among
the affected couples – has had an important and traceable impacted the sales of precious jewellery
throughout Italy.
Necklaces and rings are the products in highest demand, followed by bracelets, although rings have recently
been losing grounds in favour of other items.
The number of working women has grown in Italy between 2005 and 2010 from 45.3% to 46.1%, with a
much steeper increase in the Northern areas of the country, and a decrease in the South. Professional women
are the new target group for gold jewellery sales, as they not only buy jewellery for themselves but also as a
gift for others including their family. The national jewellery industry, and hence the local artisans, are held in
high esteem
Following are the best designers in Italy but at the same time in the world.
� Bulgari
It creates high luxury products including perfumes, handbags, watches and jewellery.
The jewellery of Bulgari has exquisite design, incredible gems and high craftsmanship.
� Damiani
Damiani Group has won 18 Diamond International Awards,the Oscars of the
jewellery world, meaning it has won the title of best jewel with diamonds a good
18 times thanks to the quality of its design and craftsmanship. Hollywood stars
[ITALIAN GOLD MARKET ANALYSIS] GROUP VII
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like Isabella Rossellini, Brad Pitt, Chiara Mastroianni, Jennifer Aniston, Gwyneth Paltrow and Sophia Loren
have worn their jewels.
� Richemont
Richemont has given his design special care and attention. What sets the
brand apart from other jewelers is that personal touch that gives the
jewellery more than a design, thus a story. The two main designers
personally follow the creation step by step, and succeeding in giving it a
defining style.
� Favero
Favero works mainly in 18 carat gold with the finest quality diamonds as
well as precious gems creating powerful, colorful collections.
� Unoaerre
Is one of the main companies in the world that specializes in production, distribution
and export of gold jewellery. Their design combines high technology and artisan
traditions
� Pomellato
Has an extended collection of luxury products all over the 5 continents. Pomellato
designs are highly appreciated.
For the first time in history, mixed metal designs using stainless steel, and high-end silver jewellery
collections are launched even by prestigious brands such as Bulgari.
Semi-precious and non-precious stones such as quartzite have also made their début
The market is dominated by the brands Bulgari
(19.5% market share), Damiani 18%) and
Richemont (16% share) Others (46.5%)
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B. MARKET STRENGHTS AND POTENTIAL The artistic jewellery segment of the larger jewellery industry is growing at a healthy 9%. This growth can be
attributed to the value that people place on having distinctive, unique pieces of jewellery. Another factor that
is supporting the growth is the blending of art and jewellery. Traditionally jewellery was ornate pieces made
out of precious metals. The nice pieces were a symbol of wealth or status. As long as the piece was made out
of a precious metal, there was value attributed to the piece just by virtue of what it was made out of,
regardless of the creativity of the actual piece. The younger population that recognizes the aesthetic value of
art work is now demanding jewellery to have artistic elements. In essence it is art that you wear. These trends
are helping the industry grow.
C. MARKET TRENDS AND PREFERENCES - The current design trends feature pieces that are larger but much lighter in weight, such as woven fine-
mesh gold rings and chains.
- Multi-strand necklaces and jointed, lariat-style "Y" necklaces that emphasize light-catching movement
are also increasing in popularity.
- Pearls, especially freshwater pearls, were hugely popular this year; and many retailers are using them in
their current lines in non-traditional ways.
- Rings have gotten bolder, featuring large enamel designs or moveable gemstone clusters that make
them the wearer's most prominent piece.
- Featured elements haven't changed much from recent years past. Flowers, spirals, swirls, loops,
geometrics, crosses, and far eastern symbols for luck, love, strength, and peace are still playing a
prominent role.
- Despite the shows name, there are still plenty of silversmiths wowing the crowds and despite Italy's
adherence to tradition, non-traditional materials such as wood, bone, and metal alloys are also starting
to make a splash in the market.
- Charms and charm bracelets, both staples of the Italian fashion jewellery industry, remain a strong
seller. Fanciful, quirky designs were especially popular this year.
D. COMPETITION DISTRIBUTION NETWORK Local players create and distribute locally, others have national distribution system setup. Some artists will
design products for larger companies to manufacture others will design and make the pieces themselves. This
is because the very large and distributed nature of artisan jewellery design, the market is entirely too
dispersed to have a complete catalogue of competition.
Competition takes the following forms –
- Famous artist creating designs which are manufactured in mass on a large scale and distributed
nationally
- A Company that has their own designers in house
- Individual artist who designs and manufacture all of the pieces themselves
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A. TANISHQ – COMPANY PROFILE
The splendid Titan watches success story was already up and running, and happened to need more foreign exchange to purchase the imported components and machines required to keep up with the burgeoning watch production. But with India going through a foreign exchange crisis, there was no help coming in, forcing Titan to search for a business that would earn them the required foreign currency.
Indian-made jewellery was already a big foreign currency earner and being strongly supported by the central government, and also happened to be a very good fit with the watch business as articles of adornment. The best known brand names in both Europe and America had watches and jewellery together, offering further proof that the two industries are intrinsically linked.
It was a business with a huge wealth potential and it added a very feminine offering to Tata’s long line of products that appealed mostly to the opposite gender. It also called for an organization that inspired trust and had high order design, manufacturing, marketing and retailing skills, and Tata fit the bill on all accounts. Hence Tanishq…..India’s first and foremost jewellery brand started in 1995, a business under India’s largest conglomerate – the TATA Group
Tanishq was coined from a combination of Tata/Tamil Nadu and Nishq (meaning a necklace of gold
coins) and, again, from Tan, meaning body and Ishq, meaning love.
Initially, the criticism for Titan’s foray into jewellery was loud and often bitter. Eventually, however, the critics were silenced. Tanishq, today, is perhaps the only major Tata brand with a strong appeal for women. Very importantly, Tanishq has brought to the market a whole new standard of business ethics and product reliability, in the process bringing about a transformation in the manner in which jewellery is bought and sold in India.
It has created a revolution in the Indian jewellery trade and in jewellery buying behavior and continues to set
new parameters of excellence for others to follow. And this was possible due to their high quality, most reliable and a premium line of jewellery They started with exclusive stores all through India, innovative and consistent marketing across all channels A pioneer in terms of assuring consistent quality products – 22 karat certified items, technologically proficient manufacturing and crafting processes
B. PRESENCE IN INTERNATIONAL MARKET Titan and Tanishq have their presence globally in countries like United States, Middle East and Far- East like
Singapore, UAE Sultanate of Singapore due to their excellence in product quality and services.
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THE PRODUCT – TANISHQ MMMMMMMMIIIIIIIIAAAAAAAA
OBJECTIVE To launch MIA, the fine jewellery from Tanishq for today’s working women who love wearing jewellery at
work through creative designs, competitive pricing and customer service.
Customization (Indian Ethnicity) for Italian women who prefer contemporary designs we would customize
our design while retaining Indian ethnicity and elegance.
TAG LINE MIA, the fine jewellery that makes you want to go to work.
TARGET MARKET Based on the demographics and behavioural patterns focused groups were held for both consumers of artistic
jewellery as well as buyers from galleries.
Survey was done through participation in various art shows and festivals so as to understand the target
segments.
The various road shows and surveys were conducted at fairs ,exhibitions to collect information regarding
buyer preferences ,likes & dislikes and price preferences of the product.
Geert Hofstede analysis was also used to understand the Behaviour pattern in Italy. Following is the analysis.
Power Distance Indices (PDI)
This dimension expresses the degree to which the
less powerful members of a society accept and
expect that power is distributed unequally. The
fundamental issue here is how a society handles
inequalities among people. People in societies
exhibiting a large degree of power distance accept a
hierarchical order in which everybody has a place
and which needs no further justification. In societies
with low power distance, people strive to equalise
the distribution of power and demand justification
- Availability of highly skilled designers in India
- Flexibility in providing customized pieces.
- Comprehensive distribution network from
robust website and network of galleries.
- Strong financial backing of the TATA group.
- Over 14 years of expertise in retailing designer
jewellery
- Established jewellery business in India. Has had
a 50% sustained growth in turnover over the
past 4 years in India.
- Global awareness of high profiled Indian ethnic
jewellery.
- 70% market share in branded jewellery market
in India.
- Target audience is not aware about Tanishq.
- Frequent updation of market trends to match
change in customer expectations consistently.
- Loss of talented skilled work force to foreign
brands entering Indian market.
- Saturation of Indian market.
TTHHRREEAATTHHSS OOPPPPOORRTTUUNNIITTIIEESS
- Established branded and un-branded players.
Tough competition from existing global players
- Government regulations
- Economic slowdown. Reluctance of consumers at
large to spend on luxury items in these times of
recession.
- Language and culture barriers.
- Growing Market
- Big potential for growth in due high disposable
incomes
- Huge NRI population in target markets will
help capture significant market share.
- Competitive pricing by using :-
� Labour intensive technology from home
country.
� Using existing designers.
� Product extensions in watches, handbag &
accessories by existing Titan brands
� Targeting the festivities.
� Being in common man’s reach.
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STRATEGIC
ISSUES
PRODUCT ADAPTION AND MODIFICATION
SSTTAAGGEE -- II
- The product to be offered is Tanishq Mia to the modern working women with the touch of Indian
ethnicity and Italian designing.
- Issue purity certificates along
with each item
- The products will be
customized to suit the Italian
taste while retaining the Indian
ethnicity
- The products will include rings,
“Y” shaped necklaces, earrings,
brooches.
- Stage I will give Tanishq a
foothold in the Italian market,
making the consumers aware of
Tanishq Mia.
SSTTAAGGEE -- IIII
- On success of stage I, a new
product line will be offered
extending it to clutches,
handbags, watches, shoes etc.
- These products will be gold
plated and or made of pure gold
with 100% purity
The parameters basis which the company will be launched in Italy is illustrated through the model.
Developing of Offering
Advertise
SalesSuperior
Experience
Retention
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Indirect Exporting
Direct Exporting
Licensing
Joint Venture
Direct Investment
MARKET DEVELOPMENT AND ASSESMENT – DISTRIBUTION STRATEGY - Tanishq-Mia will use Indian infrastructure, labour, designers and knowledge of Italian market captured
from field surveys, design competition to design and develop Tanishq-Mia range for Italian women.
- It will be exported from
India through existing export
agencies to import agencies in
Italy (Tanishq- Mia will prefer
existing export/import
agencies which they already
have ties with.
- From export agencies
warehouses same will be
distributed to franchisee
retailers and Tanishq-Mia
outlets in Mall and Shopping
complex.
- Franchisee retailers and
Tanishq-Mia outlets will
provide after sell service for the purchased jewellery customers.
- Focusing on two distinct group of customers the end users and galleries (To be used as distribution
channel)
� End Users:- Working Women
The majority of women are working (47.4 percent) while 42.8 percent are housewives.
� Galleries
� Through existing jewellers as a Franchisee Model
PROCESS The main focus while launching the company will be to create the maximum awareness of the brand –
Tanishq MIA. The main focus will be to have a maximum pre launch marketing strategy. Following is the
action plan to kick start the company –
- Secure export licenses to start operations
- Register the company
- Advertise
- Import the designs – the main strategy is to manufacture in India and export to Italy sue to the following
reasons-
� Cheap labour in India – Labour in Italy cost 300% more as compared to India
� As Tanishq already has a setup, the resources can be utilized to the maximum
� Artisans
� Designers
� Technology – the investment is to be done only in design dyes to match the Italian standards
� Import / Export Agents
� Import Duty is 4% on 24 carat gold, however as Italy prefers 18 carat the import duty is less.
� The strategy of exporting to Italy is less compared to manufacturing in Italy
� Concentration on minimizing the production cost and maximizing the advertising cost as the brand is
new and has to compete with the established brands, hence the concentration of finances will be
more on advertisement. This also holds true as the LTO of Italy is less hence the brand has to be well
established through advertising so as to increase the brand recall value.
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- Suppliers
Tanishq will continue with the same set of suppliers as it has provided a trust factor within the supply
chain. The current suppliers are from S.A. UAE, Australia, US, Congo, Botswana, Russia, DTC who will
supply in India.
- Diamond cutting and polishing will be done in India as world largest diamond cutting and polishing
industry is in India and Tanishq-Mia has domestic advantage of having access to these resources.
- Ratings & Hallmark
� Carat is the measurement of gold purity, the number of gold parts per 24. One carat is 1/24th
gold or 4.1667%. 24 carat gold is pure gold metal
� 18 Carat gold alloy has more of the gold metal and less other metals (known as alloys). 18 carat
is 75% gold metal. Italian customers prefer 18 carat gold.
� Hallmark, consists of five components i.e. BIS Mark, the Fineness number (corresponding to
given caratage), Assaying and Hallmarking Centre's Mark, Jeweller's identification Mark and year
of Marking denoted by a code letter and decided by BIS (e.g. code letter `A' was approved by BIS
for year 2000, `B' being used for the year 2001 and `C' for 2002 and 'J' for 2008). The marking is
done either using punches or laser marking machine.
� The BIS hallmark is a mark of conformity widely accepted by the consumer bestow the additional
confidence to the consumer on the purity of gold jewellery.
Tanishq Mia will provide not only BIS Hallmark but also will have certification from Italian standard and
world gold council standards for every product purchased.
MICHEAL PORTER’S 5 FORCES MODEL
Bargaining power of suppliers
- In jewellery industry the suppliers are S.A., UAE, Australia, US, Congo, Botswana, Russia, DTC. - Gold is very scarce resource and limited. - Few Alternatives of cutting & polishing in Italy. - Skilled labour is scarce resource in Italy. - Labour cost is very high in Italy.
Bargaining power of suppliers - Supplier will provide gold for Indian & Italian market in India only thus purchasing in big quantities. - India is biggest consumer for gold articles. - Indian Labour will be utilized for manufacturing Tanishq –Mia which will be exported to Italy, Indian
labour is far cheaper than Italian Labour. - Indian have abundant skilled labour & established designers due to high domestic demand the resource
which Tanishq can explore. - Majority of diamonds in world are cut and polished in India so Tanishq has access to low polishing and
cutting cost for diamond supply.
Bargaining power of buyers
- Buyers are divided into two categories one who can afford high cost branded jewellery & others who approach to individual jewellery maker for gold jewellery.
- Tanishq- Mia will be targeting a segment of office going women who cannot afford top branded Italian jewellery and also does not get elegance , style and design varieties in jewelleries purchased from individual jewellery maker.
- Competitive costing will make the value proposition very lucrative due to lower making charges of Tanishq –Mia Jewelleries.
- Bargaining power of buyers will be low to medium due to lack of branded jewellery option in competitive cost.
Threat of substitute products
- Substitutes are Real assets, Stock market, & Bank deposits & mutual fund investment. - Other types of jewellery like imitation jewellery, bagasra jewellery, stone jewellery etc.
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- Second preferred investment behind bank deposits - Status and standard of living increase so gold demand is increasing at high rate.
Threat of new entrants
- Competitive advantage for Tanishq- Mia is access to lower labour cost. - Another Competitive advantage is that India is diamond cutting and polishing hub. - New Italian companies will not have this competitive advantage and hence on competitive cost Tanishq-
Mia will always have an upper edge. - High threat is anticipated from Indian / Chinese jewellery companies who have similar competitive
advantage.
Competition among existing player
- Italian established branded jewelleries’ brand will find tough to fight with Tanishq-Mia competitive pricing.
- Indian players who have made early enrols in Italy like Gitanjali will compete in harder way as competing in similar segments with similar competitive advantages.
- Tanishq-Mia due to back up parent like Titan and Tata group can diversify in different product range quickly as compared to competitors like Gitanjali.
PROMOTION AND LANCH PLAN - Use Vincenza Italy for the undisputed king of artisan jewellery expositions to showcase the Tanishq Mia,
as the said event is happening in beginning of the year it helps in setting trend for entire year.
- Fashion Shows
Displaying and promoting the design range at the most famous fashion show “Milan Fashion Week”.
Select working women as Models
- Online designing
Launch an online design portal design for promoting working women to explore their creativity and
reward them.
Display designs on website for voting to launch favourites amongst Italian Women.
- Sponsor Operas and adverstise on TV shows at prime time
- International Jewellery Fairs
- International Jewellery and Art Magazines
- Lot of promotional activities will be carried on to make the brand visible. There will be sequential
launches in various places in Italy specifically targeting the metros and business hubs.
- The shops and Kiosk or even the franchisees will have the same look. Localites will be employed to offer a
sense of trust and belongingness.
- The ambience will be designed to replicate the brand - mixture of Indian ethnicity and Italian designs
- Focus will be on maintaining customer expectations
PRICE DETERMINATION
The main criteria is to promote the product amongst the working women. This will be sub categorized into
two classes hence we can target the classes as well as masses within the category.
Mia product range will target all the set classes primarily the one who cannot afford exquisite jewelleries.
This will be possible by keeping the labour cost to the minimum and optimum utilization of resources as the
gold prices cannot be hindered with.
Tanishq intends to offer discounts on prices via –
- Discounts on labour cost if the payment done through cash
- Cash back options if paid through credit cards.
- Tie-ups with payment gateways to promote the product line
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TERMS OF CONTRACT Tanishq will have exclusive contracts with agents and the franchisees.
BUDGET & FINANCES
Capital Expenditure
As the existing manufacturing setup is going to be used, the capital expenditure will be only consumed for
having regionally offices in Italy. This will also help in achieving the break even quickly and maximize the
profits.
Operating Expenditure
Designers and artisans allocated for Italy, showroom rentals, import export fees, government taxes, continue
research and market analysis cost, surveys. Few of the cost heads will co-paid due to franchisee modeling
which will also minimize the risk.
Marketing Expenditure
As mentioned earlier, the main spent is going to be on the promotional and launch activities to create brand
awareness. Marketing and promotional activities will consume 40% of the budget allotted.
TARGETS & CONTROLS
DDeeffiinnee
- Define the measurable parameters from
the marketing and advertisement plan
- Identify the performance parameter for
outlets, importers exporters, designers
and designs
- Identify the current customer perception
MMeeaassuurree
- The performance of each parameter
which is defined
- The customer perception by feedback
analysis and service
AAnnaallyyzzee
- Basis the information gathered, analysis
will be done to derive the best possible
strategy a as of be successful in Italy
IImmpprroovvee
- Constant monitor the targets, minimize the cost, innovate basis customer feedback and market analysis, to
adopt the KAIZEN approach (continuous improvement approach)
CCoonnttrrooll
- Monitor the success parameters as to maintain the performance and constant improve on the same.