Project Report On “Buying behaviour of gold with regards to Tanisq ” SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT OF P.G.D.M. PROGRAM Submitted To: Professor Devang Desai Submitted By: Jay Desai (28) Grishma Tandel (20) Jairaj Tailor (27) Rohan Shahi (49) 2 nd Year P.G.D.M. (3 rd Semester) G.I.D.C. Rofel Business School, Vapi. Academic Year: 2009-2010
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Project Report
On
“Buying behaviour
of gold
with regards to
Tanisq ”
SUBMITTED IN PARTIAL FULFILMENT OF THE
REQUIREMENT OF P.G.D.M. PROGRAM
Submitted To:
Professor Devang Desai
Submitted By:
Jay Desai (28)
Grishma Tandel (20)
Jairaj Tailor (27)
Rohan Shahi (49)
2nd Year P.G.D.M. (3rd Semester)
G.I.D.C. Rofel Business School, Vapi.
Academic Year:
2009-2010
Submission On: 20th November, 2009
Buying behaviour of Gold
DECLARATION
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This project report entitled study of customer’s perception has been submitted to G.I.D.C Rofel Business School, Vapi in partial fulfilment of P.G.D.M. Degree. Here by we, undersign that this project report has been completed by us under the guidance of Professor Devang Desai (Faculty: Marketing Research, G.I.D.C. Rofel Business School, Vapi)
Study of this Project Report is entirely result of our own efforts and research is original in nature. This Project Report is not submitted either in part or whole to any other institute for any other degree.
Place: Vapi
Date: 20th November, 2009
Grishma Tandel
Jairaj tailor
Jay Desai
Rohan Shahi
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ACKNOWLEDGEMENT
We would like to express our gratitude to:
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(i) Professor Devang Desai, for giving us a chance to learn things in a practical and innovative way, and gain some experience for the same. We would also like to thank her for all her support and to encourage us and motivate us to learn new things and in different ways.
(ii) The group members for showing their co-ordination for the project.
We are greatly thankful to all the advisors who helped us knowingly and for giving information and interest in report.
Thanking You,
Grishma Tandel
Jairaj tailor
Jay Desai
Rohan Shahi
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ITENARY
F Executive SummaryF Introduction
i) Tanishq profile
F About The Research
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i) Purpose Of The Researchii) Problem Of The Researchiii) Objective Of The Researchiv) Limitations Of The Researchv) Significance Of The Research
F Detailed FindingsF ConclusionF Recommendation & ConclusionF Bibliography
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EXECUTIVE SUMMARY
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INTRODUCTION
TANISHQ PROFILE
Evolution of Tanishq
Titan came into existence in July 1984, when the Tata Group joined hands with the Tamil Nadu Industrial Development Corporation (TIDCO) to make a foray into the watch industry.
Titan started manufacturing jewellery watches and jewellery in 1994. It set up its fully integrated Rs. 400 million-jewellery plant in Hosur. The plant had the capacity to manufacture four
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Buying behaviour of Gold
tonnes of gold in a year. Titan launched these products under the brand name of Tanishq, in 1995. The name Tanishq, a blend of two words, 'tan' (body) and 'ishq' (love), was coined by Xerxes Desai, the Vice-Chairman and Managing Director of Titan.To change its image from a watch manufacturer to a fashion accessories manufacturer, Titan was renamed Titan Industries Ltd. in 1995. Titan scaled the capacity of its Hosur plant to 4.18 million units in 1996 to meet the domestic and international demand. From the late 1990s, Titan's commitment to the jewellery business increased.
When Titan launched Tanishq in 1995, the jewellery industry in India valued at Rs 40,000 crore was mostly unorganized, with around 3.5 lakh players. Before 1992, only the Metal and Mineral Trading Corporation and the State Bank of India were allowed to import gold. In 1992, as part of economic liberalization, the government abolished the Gold Control Act of 1962, allowing free import of gold. In 1993, private companies were allowed to enter the hitherto restricted gold and diamond mining industry. Foreign investors were allowed to hold up to 50% equity in mining ventures.
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Growth of Tanishq
2000 2001 2002 2003 2004 2005 2006 2007 20080
5000
10000
15000
20000
25000
Revenue in million Rupees
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SWOT ANALYSIS
STRENGTH
Purity (karat meter)
Distribution network and
retailing store
Award winning designs
Diversity in jewellery
gold/diamond/platinum
Competitive prices
OPPORTUNITIES
Global markets
Low cost jewellery
Customized jewellery
designs
Concentrate on Gen-X by
having trendy jewellery
Expand retail stores
WEAKNESS
Capture Rs 70,000-crore
Escalated gold costs lower
margins
THREATS
Competition
Lack of Skilled workers
Gold not seen as s source
of investment. (Luxury is
needed).
Purity of jwellrey through karat meter is still the sign of total purity.
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Distribution network and retailing store are in place for the company with
130 stores countrywide. Mind boggling/award winning designs have come
for the company. Diversity in jewellery gold/diamond/platinum enhances
the product range of the company. We also have competitive prices for
the entire product ranges as compared to the competitors.
Weaknesses
Capture Rs 70,000-crore Indian jewellery market. Tanishq comprises a
small share of the overall Rs 70,000-crore Indian jewellery market and
hence it needs to increase its market share in this huge industry. Escalated
gold costs has caused lower margins is to push sales as much as possible.
Opportunities
Global markets like USA needs to be looked at. Low cost and easy to
wear jewellery should be further promoted. Customized jewellery designs
should provided to the customers. Concentrate on Gen-X by having
trendy jewellery. Expand retail stores in India to further increase reach.
Threats
Competition from local jewellers all over India. Lack of Skilled workers
in jewellery industry. Gold is no longer seen as source of investment.
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People are more concerned about design and luxury.
Three Major Products Of Tanishq In GOLD
Zoya
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Secrets of the Egyptian pharaohs masked with the mystery of the comos;
Oriental art embellished with occidental architecture
Fashion Earrings
The Fashion earring collection; has a ranged of over 300 exclusive
designs
Wedding Collection
The bride blushes
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ABOUT THE RESEARCH
THE PURPOSE OF THE RESEARCH
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The basic purpose of this research is to find the buying behaviour of people of vapi toward gold.
PROBLEM
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To find out problem is the first stage of the research process. It represents translating the management problem into research problem. It is right said, “A problem well defined is half – solved.”
Tanishq is one of the store who provides branded gold & have brand name.
Inspite of product quality , services tanishq provides why do still prefer buying gold from local retailers.
.
OBJECTIVES
The objectives of the study are as follows:
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1) The objective of study was to find the actual reason why people are not going to Tanishq
2) To find what they like & dislike about Tanishq.3) On the basis of in depth interview we got 6 criteria in which we
could measure the attitude of people towards Tanishq.
Limitations
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The survey was conducted within the limited time frame;
so few shortcoming may be expected.
The respondent’s personal bias may be another factor,
which is uncontrollable.
The finding of the survey is strictly based on the responses
of the respondents. It is difficult to find the euthenics be
true, so we are assuming them to be true.
It was very difficult to explain the respondents about how
to fill the questionnaire & it took time for data collection.
Hypothesis
a) Price does not affect the buying of gold.
b) Quality of gold does not effect the buying of gold
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c) Service does not effect the buying of gold
d) Pattern does not effect buying of gold
e) Location of store does not effect buying behavior of
gold.
f) Ambiance of store effect buying behavior of gold.
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VIEW ABOUT THE TOPIC
SAMPLE
Sampling Frame:
A Sampling frame consists of a list of item
from which the sample is to be drawn.
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The sample frame for this research constitutes
all the customers who have visited Tanishq store for
purchasing gold.
Sampling Unit:
A decision has to be taken concerning a
sampling unit before selecting sample sampling unit
may be a geographical one, a construction unit, a
social unit or it may be an individual.
The sample unit for this research constitutes
the organization that is Tanishq only dealer in vapi
Sample Size:
The sample size of our research was 150 but
only 121 people have visited tanishq store.
Sample Size Selection:
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sample size was selected on the
basis of the 3 factors.
a) It was difficult to locate the customer
who have visited to tanishq.
b) The respondents were not much
educated so it was difficult to make them
understand about the questionnaire.
c) People were not easily available outside
Tanishq.
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RESEARCH METHODOLOGY
Research Tools:
The research tool used for this research is
PRIMARY DATA
In primary data the following research design
is being followed:
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i) Exploratory Research:
Questionnaire Survey (Sample Size –
150)
ii) Descriptive Research:
On the basis of the questionnaire
survey, the analysis is done in order to
find out the reason why people are not
visiting Tanishq
We have used 2 types of reaserch design they are
a) Exploratory researchb) Descriptive research
Exploratary research because we were not knowing the actual problem faced by tanishq. So for that we did an Indepth interview of 3 person to find what are the major findings & difficulties are faced by them.
We did Interview of
a) Mr Bhaskar who is the senior sales manger of tanishq of south Gujarat region.
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In the interview we asked him diifrent question regarding the sales & their way of operation & different aspects about tanishq
From the answers given by Mr Bhaskar we found that major reason why people are not turning out towards Tanishq is because of Price a bit higher & pattern availability in tanishq . he also told us the major reason why people are coming to tanishq is the quality of gold & services provided by them. He also said that people who loves the ambiance of store may affect the buying decision.
Then we interviewed Mr Azad the owner of Payal jwellers of vapi town & we asked him the same questions what we asked Mr. Bhaskar.
We found that
a) Major people who buy gold from there are their regular customers from long time
b) The people have trust on the purity of goldc) He also said that people are having bad experience of
going to tanishq as the price of gold is more than what they are paying to normal retailers.
d) He also said that people of vapi are more price councius & not quality concius.
e) He also said that patterns which are available with them are the same or much more compared to tanishq people.
From the detailed interview of these 2 people we thaught that major reasons which can effect the purchase decision of people buying gold are
1) Price2) Quality3) Service4) Availability of pattern5) Proximity to market6) Ambiance of store
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DETAILED FINDINGS
Over All Sample size
81%
19%
Sample Size
Visited Not visited
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The sample was 150 but out of which 29 people dint
went to Tanishq for buying of gold. So our sample size
came to 121.
Segmentation According to Gender
male; 56
female; 65malefemale
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Out of 121 there were 65 female that constitute 54% of
total sample & rest are male they are 56 which
contributes 46% of total sample.
Annual income of Respondents
5000-10000
10000-20000
20000-30000
30000 & Above
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The respondents average income lies from 5000 to
30000 & above so respondents were
a) 5000 – 10000 = 6
b) 10000 – 20000 = 11
c) 20000 – 30000 = 18
d) 30000 & above = 86
People who said they visit Tanishq & again goes for
repurchase
Yes; 28
No; 93
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The above charts gives us the detail of people who
The hypothesis of these question is that the proximity does not
effect the buying behavior of consumer that is Ho.
So from the calculation we got the value of H0 as 15.61
So when compared to tabulated value of the number that is (r-
1)*(c-1) gives us the tabulated value so for my question (5-
1)*(5-1) = 16 is the degree of freedom.
The value for the 16 is 26.3
So Ho<H1 so hypothesis is accepted.
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Questionnaire
GIDC ROFEL BUSINESS SCHOOL
Dear Sir/Madam
We are the students of 2nd Year PGDM Course of GIDC ROFEL BUSINESS SCHOOL (VAPI). As a part of our research study we are conducting a survey regarding the perception of people regarding the purchase of gold from different organized & Un organized Retailers.
Guidelines for filling the form:-
1) Please check the box wherever required.2) Only 1 check per question.
Q 8) do you buy jewellery from same store every time ?
Yes No
If Yes/No Why?___________________________________________________________
Q 9 ) Rate your jewellery store from 1 to 5
where 1 is the WORST & 5 is the BEST
a) Product are worth price you pay ?
b) Purity & quality of gold ?
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c) The service you get in the store ?
d) The Number of patterns available ?
e) Proximity to market ?
f) Ambiance of Store ?
Q 10) Are You aware about tanishq showroom opened in vapi?
Yes No
Q 11) How did you come to know about Tanishq?
TV News Paper Hoardings
Pamphlets Friends/relatives Others
Q 12) Have you visited Tanishq Store?
Yes No
Q 13) Rate Tanishq On flowing Criteria Given below
Particular V.Good Good Average Bad V.bada) Priceb) Purity & Quality of Goldc) Service Offeredd) Patterns Availablee) Location of Storef) Ambiance of store
Q 14) During Re-Purchase you often go to Tanishq?
Yes No
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Q 15) Would you recommend others for Buying Tanishq Products?
Yes No
Q 16) Rate tanishq on over all basis?
Particular V.Good Good Average Bad V.badTanishq As a Store
Thank You
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FINDINGS
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On the basis of chi-square test the relation between the
variables are significant & few are not significant.
Variables which were significant in the research & which affects
the buying behavior of gold are
a) Because of price people are not visiting Tanishq.
b) People are happy with the quality of Tanishq & they go
to Tanishq only because the purity & quality of gold.
c) The people also visit Tanishq because they provide
better services then the other retailers.
d) The pattern are also major factor because of which
people does not prefer Tanishq.
e) The people says that the location of store is not
affecting them to visit Tanishq.
f) People are not affected by the ambiance of store
From these we can conclude that people are more sencisitve
towards price , Quality & availability of pattern. If they find
these 3 things ok & they fill that this is what they wanted they
will buy from there only.
For people of vapi ambiance , proximity to market & service are
less important.
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Recommendation
&
Conclusion
Conclusion
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People are more price conscious & they feel that the price in
Tanishq are more than what the normal retailers have. They
also feel that the quality they get is much higher than the
quality what the normal retailers give. They also found that the
patterns available are lesser than what they get in the normal
retail store. They also are service oriented so they are more
attracted because of service they get. People are not affected
with the ambiance of the shop.
Recommendation
We would recommend Tanishq following things
a) The making charge is affecting their sales so they
should cut down their prices.
b) The patterns are comparative less so they should
provide more number of patterns & also should increase
their market share by bringing more innovative scheme
& loyalty programs.
c) People are more service conscious so they can target
young business man & young professional as they are
now more in investing money in gold.
d) Gold price are increasing day by day so they should
increase their sales by selling biscuits of gold rather