Study of Consumer Behaviour & Customer Satisfaction

Submitted By
Hardika Thakker
UNDER THE GUIDANCE OF

Prof.Sachin Kamat
A PROJECT SUBMITTED IN PART COMPLETION OF PGDM TO THE

Chetanas Institute of Management & Research

Bandra (East), Mumbai 400 051.

July 2011

CERTIFICATE
This is to certify that Ms.Hardika Thakker , has completed her summer internship at Titan Industries, and has submitted this project report entitled Study Non purchase ,Media Track & Customer Satisfaction at Tanishq in Mumbai , for the award of the Post Graduate Diploma in Business Management . This Report is the result of her own work and to the best of my knowledge no part of it has earlier comprised any other report, monograph, dissertation or book. This project was carried out under my overall supervision.

Date:

Place:

Internal Faculty Guide

----------------------------------

TABLE OF CONTENTS

Acknowledgment

Executive summery

Chapter 1. Introduction

8 - 15

1.1 Company Profile

1.2 Product Mix

12

1.4 Purpose of study

15

Chapter 2 : Literature

16 - 26

2.1 The jewellery industry : An overview

17

Chapter 3 : Research Design

27-28

Chapter 4 : Analysis

30 - 38

4.1 Analysis on the basis of questionnaire

31

Chapter 5 : Recommendations

39

Chapter 6 : Conclusion

6.1 Concluding observations

6.3 Further scope of study

39

Chapter 7 : References

40

Chapter 8 :Annexure questionnaire

41

ACKNOWLEDGMENT

The satiation and euphoria that accompany the successful completion of the project would be incomplete without the mention of the people who made it possible. I would like to take the opportunity to thank and express my deep sense of gratitude to my corporate mentor Mr Abhishk Sinha and my faculty mentor Prof. Sachin Kamat . I am greatly indebted to both of them for providing their valuable guidance at all stages of the study, their advi ce, constructive suggestions, positive and supportive attitude and continuous encouragement, without which it would have not been possible to complete the project. I would also like to thank Mr. Abhishek Sinha (Area Business Manager) who in spite of busy schedule has co-operated with me continuously and indeed, his valuable contribution and guidance have been certainly indispensable for my project work.. I am thankful to Mr.Sanjay Maheshwari( Store Manager ) for giving me the opportunity to work with Tanishq Andheri and learn. I owe my wholehearted thanks and appreciation to the entire staff of the company for their cooperation and assistance during the course of my project. I hope that I can build upon the experience and knowledge that I have gained and make a valuable contribution towards this industry in coming future

EXECUTIVE SUMMERY

This project mainly focuses on identifying various factors that results in Non purchase in the newly inaugurated store and Media Tracking for the massive 25,000 centrally located Bouti que. While researching on the assigned Jewellery boutique at Andheri , my Primary objective was to understand the penetration of Various media used as the advertising tool for the newly launched store & to further find out main reasons for non conversion of customer in the store & how to provide more satisfa ction to customer and make their shopping experience memorable .

In the same context, a questionnaire was prepared to know the media penetration and the customers were interviewed,and even to find the reasons for non purchase information was collected from the retail sales officer and then was categorized and analysed. Some remedial suggestions and recommendations for boosting the sales as well have been stated therein.

My other main objective was to find the popularity of Tanishq as a branded Jewellery,and how people perceive this Brand in their life which was personally done by me with the help of a small questionnaire .

CHAPTER ONE

INTRODUCTION

1. Introduction
India's glorious history has affected each and every aspect of Indian lifestyle. Jewelry has remained an integral part of the Indian lifestyle. Thus, the diverse history of Indian has influence the jewelry styles as well. You will be surprised to know that the history of Indian jewelry goes back to almost 5000 years. Since pre -historic times, people in India have had a penchant for adorning themselves with jewellery. Gold, silver, stones, gems, etc. were the defining aspects of Indian jewellery. The Indian jewellery is varied in styles and designs in accordance to the different regions. Different states have different styles of Indian jewelry that are unique to that state and are not found anywhere else. For instance, the delicate filigree work in silver is unique to Orissa and Andhra Pradesh; the Meenakari (jewelry enameling work) is popular in Rajasthan; the temple town of Nagercoil in south is famous for its famous temple jewelry; Delhi is famous for its Kundan jewelry and so on. Indian jewelry has a variety of ornaments in different styles and designs for just about every part of the body. In ancient times, people used to adorn themselves with necklaces, rings and anklets made of crude stones and other metals. As time passed by, people learnt the art of polishing metals like gold and silver and learnt to extract semi -precious stones and gems from the mines. As various ruling empires came, the rich kings

wore jewelry that made them look like Gods. Every big and small piece of adornment was made of gold and precious stones like rings, earrings, bangles,chains,crowns,anklets,etc. India has been ruled by different empires over the past many years. All these empires have left an indelible mark on the jewelry styles as well. The Mughals gave their distinctive style of using precious stones and intricate carvings, the Rajputs had their enameled jewelry and so on. In the modern world, though new and sophisticated styles have emerged to cater to urban centers, the traditional style of jewelry is still in vogue and is usually the first choice in jewelry. In the contemporary Indian market, you will find a beautiful blend of traditional and modern jewellery in gold and silver that are decorated with gorgeous precious stones that never fail to attract and amuse buyers . Before the liberalization of the Indian economy in 1991, only the Minerals and Metals Trading Corporation of India (MMTC)and the State Bank of India (SBI) were allowed to import gold. Exporters in export processing zones were allowed to sell 10 percent of their produce in the domestic market. In 1993, gold and diamond mining were opened up for private investors and foreign investors were allowed to own half the equity in mining ventures. In 1997, overseas banks and bullion suppliers were also allowed to import gold into India. These measures led to of foreign players like DeBeers, Tiffany and Cartier into the Indian market. In the 1990s, the number of retail jewellery outlets in India increased greatly due to the abolition of the gold control Act This led to a highly fragmented and unorganized jewellery market with an estimated 100,000 workshops supplying over350,000 retailers, mostly family-owned, single shop operations.

1.1 Company Profile The Tani hq saga began in the earl 1990s, pri aril fuelled by the fabled Tata entrepreneurial spirit and partly forced by circumstance. 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. Titan industries have the following business division: 1.Time product division 2.Jewellery division 3.Eyewear division 4.Precision Engineering division

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. It was launched in 1994 as a range of jewellery and jewellery watches meant for the European & American markets. But things began to change globally around this time, and the West entered a protracted period of slow economic growth followed by recession. Supplying jewellery to the Americans & Europeans suddenly no longer seemed an attractive proposition. Tanishq, India's largest, most trusted and fastest growing jewellery brand, offers traditional as well as trendy designs in gold, diamond and platinum. With retail

sales of over Rs. 3000 crores last financial year, Tanishq has delivered value to its customers and shareholders.

VISION To be the most desirable jewellery brand for Indian women. MISSION We will continuously create wealth for all our stakeholders, by transforming the jewellery business and by being the gold standard in design, shopping experience and ethical practices.
Tanishq Titans flagship line of jewellery is today a resounding success with discerning customers. Tanishq has performed exceedingly well and has set standards, in what could best be described as a largely unorganised and unscrupulous jewellery market. The growth of the brand has once again been a testament to our customer focus. Tanishq is today a hallmark of trust, an island of purity. It is a certified division under the ISO 9001:2000 Quality Management System Standards. Established to addresses the urban market, its growth has transformed Titan into the largest integrated jewellery manufacturer and outsourcing company of India. Tanishq is India's fastest growing jewellery brand with a premium range of jewellery, studded with diamonds or coloured gems in 18-karat gold, 22-karat pure gold and platinum jewellery. We are now one of India's largest speciality retailers and are transforming Indias jewellery market with a pan - India presence. Titan felt a need and created a means to offer elegant gold jewellery to smaller towns and rural markets. The recent launch of a retail initiative Goldplus caters to the need. Both brands contributed to over Rs.450 million USD, and are still flourishing. Truly a phenomenon in itself, Tanishq is our pioneering Indian brand storming a market of over 300, 000 independent jewelers. The brand is evolving faster than the market and is either leading or closing gaps between competitors in urban markets where we have a presence.

The trust connotations that the Tata - Titan association evokes, never fails to attract increasing numbers of jewellery seekers to the fledgling designer brand. Titan ensures that they are spoilt for choice, transparency and a great shopping experience with Tanishq, the jewel of its crown. Tanishq is a trustworthy, popular jewellery brand from Indias largest integrated jewellery manufacturer. Backed by in-depth research in the jewellery space, the production and sourcing units of Tanishq create exquisite designs with faultless finish. Located at Hosur (Tamil Nadu) and Dehradun (Uttarakhand)) the 1, 35, 000 sq. ft. manufacturing unit is equipped with the latest and most up-to-date technology and tools. The unit also complies with the labour and environmental standards. Stringent quality standards ensure that every product at Tanishq is crafted t o perfection with unmatched finish. With innovations like the karatmeter - the only non-destructive means to check the purity of gold - Tanishq introduced technology-backed challenge in the category completely governed by individual trust. The brand propagates ethical practices and provides the customer a certification of purity of material and reselling policies. Following the line of ethical practice further, adequate policies are in place for the artisans who create the jewelry. Tanishq has a Golden Harvest savings scheme which is a unique Jewellery purchase scheme, leading to an easy purchase of Tanishq jewellery of your choice. With this scheme you can buy for more than what you save because Tanishq will add a special bonus at the end of the scheme. Tanishq introduced specialized retailing in the fragmented jewellery market of India. Today, with over 118 opulent stores in 76 Indian cities, Tanishq continues to rule the jewellery space. Tanishq is considered as a premium product in the jewellery segment.

Segmentation
Tanishq positions itself as an international brand for the Indian elite.The brand was targeted as niche market.Later by 1997 they started targeting mass.

About the Andheri showroom

The boutique where I had to do my research was newly inaugurated Asia s one of the largest jewellary showroom of 25,000sq feet located in the hub of the city which was inaugurated on 29.05.2011 by Indias biggest celebrity Mr.Amitabh Bacchan Mrs.Jaya Bacchan. It has 81 counters and manpower of 96 people.Within 10 days the boutique had reached sale upto Rs.10 crores.

On the auspicious day of Akshay Tritya the boutique was able to make sale of 3.50 crores in a single day,so far the higgest sale on that particular day.

Tanishq

24 Kt

22 Kt

18 Kt

Gold Coin

Plain Gold

Color stone gold jwellary

Polki

Kundan

Diamond

Platinum

solitair

color stone

Open

Close

1.4 Purpose of study :

The Primary objective of the study is to understand the consumer behavour and their buying behavior which leads to conversions of customers into consumers. The goal is to analyze the reasons for non conversion take action against them. Other ancillary task was to create the wow feeling in consumers mind and to find the penetration of various media used as an advertising medium for the newly launched store.

Primary Objective :
The Primary objective of the study is to u nderstand the the reasons for non purchase in a store of 25,000sq ft where all the possible jewellery was available.

Secondary Objective :
1. To find out the popualirity of Tanishq as a brand. 2. To assist the RSO in pitching for the Golden Harvest Scheme ,the investment scheme of Tanishq 3. To interact with the customer and to take feedback about the new boutique. 4. To do media tracking 5. To arrange for kitty parties and get togethers for customers.

6. To arrange for small events like fathers day to get that wow feeling in their mind. 7. To be at the carat meter -the equipment to check the gold purity and interact with customers there.

CHAPTER TWO

LITERATURE

In earlier chapters we have seen what are the objectives of doing this project . This chapter is about the literature and conceptual support that will be required as we advance the project . These terms are used by referring various blogs,sites and books.

2.1 The Consumer Behavior & Retail Sector: An Overview

Consumer behaviour is the study of when, why, how, and where people do

or do not buy a product. It blends elements from psychology, sociology, social anthropologyand economics. It attempts to understand the buyer decision making process, both individ ually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general .. Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer.
Retail consists of the sale of goods or merchandise from a fixed location, such

as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Tanshiq falls under the category of Speciality Reatil Store which means-store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. Thus in Retail consumers are considered next to God,and company should take all the possible efforts to make them feel delighted.

Metod of data collection :

Primary Data Collection The two main methods of primary data collection was observation and communication. We were assigned counters in the store for which we were responsible.we mainly used to observe the assigned conter and used to give feedback. For customer Delight sometime we had to trap the hidden unspoken demand of the customers through observation. And sometime the difficulties faced by them were communicated directly or through interaction with them. To know about the popularity of Tanishq a separate Quesionnaire was made. Secondary Data Collection The secondary data was collected by the retail sales officers who used to communicate to us if they find the customer is not satisfied which they notice during their sale.There was a non purchase form which was to b filled by the customer which got the non purchase data. And about the Media track ,the questionnaire was filled b y the customer for the initial period and later on RSO themselves made a tick against check box which was there on the Proforma. We were lucky enough to be the part of one of the biggest auspicious occasion Akshya Tritya which is marked as a day where people buy Gold.There was a huge rush that particular day,and we crossed sales of 3.5 crores on that day

higgest recorded sale so far on the single day.On this day we came across many customers and we were lucky enough to i nteract with them.

CHAPTER THREE

RESEARCH DESIGN

Locale of the study :

The study was done in the western region of Mumbai .It covered the new showroom at Andheri,..

Objectives
The objectives of the study are as follows: 1. The objective of the study was to find the actual reason why customers are stepping out of the showroom without purchasing. 2.Tofind out the penetration of various media used for the advertising

Sample collection:
Almost 50 customers on a weekday and 100 customer on weekdays were interviewed for non purchase data. And all the customers were asked about from how they came to know about the store. For brand popularity 100 customers were given questionnaire and interviwed.

Size of the sample :

Total of almost 350 customers from the were interviewed with the help of questionnaire for non purchase and media track. And 100 people were asked about brand popularity with the help of questionnaire

Data collection :
Data was collected through two source :

Primary source :Primary data was collected by i nterviewing customers through questionnaire and being wid them in during their purchase and through conversation.

Secondary source :Secondary data was collected through Retail Sales Officers and through non purchase forms and then was categorized.

For collecting the data secured questionnaire for the retailers is prepared to get detailed and structured information regarding project. This questionnaire includes both open ended and close ended questions .Given below is the questionnaire.

CHAPTER FOUR

ANALYSIS

4.1 Analysis on the basis of questionnaire for Media Tracking ?

1 How did you co

to know about this Andheri showroo ?

300

250

245

200

190

150

100

87

50
26

42 10

32

24

H ar i

s Newspaper

Ra io

I v ites

Emails

SMS

a per I set a ssi

-By

The various media from where the customers came to know about the showroom can be analysed from this chart, As we can see from the diagram, Hoardings has the highest viewership and majority of the customers ie 245 have come to know about the store from hoardings, followed by newspaper and passing by.This graph further helps the management takes decision about the advertising of the store.

2.Which newspaper has contributed the most in viewership amongst various

newspaper?

Penetration of various ne spapers

HT
5%

Dna

IE

GS

L ksatta

TOI

9% 3%
43%

3%

27%

As depicted in the above circular pie chart, the majority of the awareness about the store has come from Hindustan times,followed byDNA and Gujarat samachar.advertising in various different segment of newspaper is mainly to target the mass population.

4.2Analysis on customer satisfaction which was done by observation.

Sr.NO
1

OBSERVATION
PROBLEM IN VISIBLITY OF TOP DISPLAY W ILE SITTING


SOLUTION
1.TO AVE TALL C AIRS 2.INCLINED GLASS TOPS 1.PAIR OF GLASSES WIT STANDARD LENS NUMBER 2.KEEP MAGNIFYING GLASS 1.CLEAN T E EARINGS WIT ANTICEPTIC SOLUTION
    

MIDDLE AGED CUSTOMERS FIND IT DIFFICULT TO SEE MINUTE DETAILS POSSIBILITY OF GETTING INFECTION W ILE WEARING EARINGS LONG AIR CAUSES PROBLEM IN WEARING T E JEWELLARY OLD AGED CUSTOMERS FIND IT DIFFICULT TO SEE T E S OWROOM LESS WALK INS DURING AFTERNOON TIME PADS AND PENS AVAILABLE FOR CARD SIGNING S OULD AVE T E BRAND NAME DEMAND FOR NIC E ITEMS
        

1.DISPOSABLE CLIPS S OULD BE MADE AVAILABLE

1.W EELC AIRS S OULD BE MADE AVAILABLE

6 7

1. APPY OURS S OULD BE INTRODUCED. 1.MAKE AVAILABLE PEN WIT T E BRAND NAME ON IT W IC CREATES POSITIVE MOMENT OF TRUT . 1 IF POSSIBLE AVE A SPECIAL COUNTER TO ATTRACT FOREIGNERS WIT GOLD BUTTONS.CUFFLINGS.BROC ES, AIR CLIPS ETC 1.T ERE S OULD BE AN ATTENDENT WIT T E C ILD 2.T ERE S OULD BA GAMES W IC T E C ILD COULD PLAY ON T E FLOOR.LIKE PUZZLE,MAGIC SLATE ETC
                     

PARENTS DO NOT PREFER T EIR C ILDREN TO B E AWAY FROM EIR C ILDREN AWAY FROM EYES


10

NEWER GIFTS AND OPTIONS S OULD BE GIVEN FOR GIFTS KITTY PARTIES FOR WORKING WOMEN S OULD BE ORGISED ON WEEK ENDS.S OULD AVE BUSINESS GAMES. CELEBRATION OF FESTIVALS S OULD BE T ERE KEEPING IN MIND DIFFERENT COMMUNITY
    

11

12

4.3Analysis of non purchase data .

312

Non purchase data analysis

5


40 21


Bro sers
%$

Pro B

c t size

g et
 "

Varia t co e


Others


22

From the above diagram it is evident that the major reason for non purchase was

"

Pro


ct esi

$%

  

Partticulars In figures % Pr duct desi n/ty e 126 40.38 Br sers 68 21.79 Pr duct size 11 3.53 Bud et 65 20.83 Variant c de 27 8.65 thers 15 4.81
       

/type

Product design/type,which includes people were not happy with designs,or whatever they expected was not available in the store. Management always thought that the main r easons for non purchaser was browsing,which was though not the primary reason but was one of the reason. Others category mainly include GHS scheme money was not transferred,credit card problem,or identity card not there.

4.Popularity of the Brand Tanishq.

4.1Have you heard about Branded Jewellery? YES NO Total no of respondents 0 100 100

4.2.Have you purchased Branded jewellary? YES NO Total no of respondents 0 100 100

From the above two figures we can conclude that branded jewellery is no longer a new concept in India,where earlier people always used to trust their own local jewellers.

4.3 Where do you purchase jewellery from? Local jewellers 88 32 Malls Company outlets 63 8 Exhibitions

Though there are people who still believe to purchase their jewellery from their trusted local jewelers,but there is definitely a shift that company outlets are now being preferred by the upcoming youth.

4.4 Do you select different Brands? Yes No 73 27

From this we can infer that people do change their preferances of brand.So for a company it is necessary to have good loyalty programs and customer retention techniques.

4.5 Which of the jewellery brands are you aware of?

4.6 With which jewellery brand currently you are associated with? 4.7 which of the brands would you buy next?

Brands
De beers Nakshatra

Sponteneous 61 89

Aided 15 11

Currently Using 21 47

Desirable 22 30

Tanishq
Asmi DDamas Nirvana Kiah Orra Sangini Agni Eros Gilli

94
52 48 23 40 33 45 27 9 51

6
35 26 34 31 29 40 31 15 21

71
14 24 9 12 13 18 13 5 25

26
17 26 14 24 8 17 12 5 26

From the above data we can see that Tanishq is the MOST popular brand in the jewellery segment .The first jewellery Brand wich came to their mind was TANISHQ.

CHAPTER FIVE

RECOMMENDATIONS

The recommendations for the company for further improvement were:

y Media :From the media tracking it was observed that majority of the

customers had come to know about the store from the Hoardings,so the management should put up more hoardings in Prime locations,and can cut down the cost of the least reached advertising mediums like SMS and e mails and paper inserts,but should give more emphasis on outdoor media and newspaper advertisements.

y Availability : The major reason for non purchase was found out to be as

Product Design/type and not Browsing.Therefore more attention should be paid to the avaibility of different designs and variety in the store. In gold section it was found out that the major drawback was unavaibility of modern designs with heavy look where as in Diamond section there was all similar designs of floral pattern.The modern look designs were less as compared to traditional ones.
y Customer Satisfaction : Customer is considered as god in retail

business,every minuit a new customer is born and we have to nurture him.In jewellery industry the customers are of very elite and niche crowd. So retention of such customer are always on mind. Therefore there should be celebration of festivals, get to gethers,trying to be in touch with customer.Customer engagement is necessary.follow up should be more frequent. There are customers who buy jewellery for special occasion like birthdays.anniverssary and wedding etc.There should be follow up with

the customer that how did they like or feel about the jewellery after wearing them on the occasion,or in case the if its a gift how did the receiver of the gift felt about it.Such actions will create a sense of belonging and will ultimately creats Brand Loyalty.

CHAPTER SIX

CONCLUSIONS

6.1 Concluding observations:

This project was about the Jewllery segment of Tanishq which has grown as a well know Brand in its segment.There are people who still believes that their local jewelers are the cheapest and the best . The company should come up with various schemes and initiatives to prove that they are more reliable and purity conscious. The carat meter initiative should be strengthened.

6.2 Further scope of study:

The findings we got from this project will be of great help for company as these findings will help the organization for their system.This kind of research should be done on all Mumbai basis so that the organization could get clear picture of overall Mumbai and then they can effectively implement some measures to rectify all the problems t hat comes up on their way.

REFERENCES
http://www.tanishq.com/ http://www.google.co.in/
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htt ://
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.dare.c .in/
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rtunities/ ther-business-

rtunities/je ellery-

industry-in-india.ht

ANNEXURE
Questionnaire

Name Location

: _______________________ : _______________________ Contact No . ______________

1 Have you heard about branded Jewellery? a) Yes b) No

2. Have you purchased branded jewellery? a) Yes b) No 3.Where do you purchse jewellery from? a)Local jewelers b)Mall c)Company Outlet

d)Exhibitions

4. Do you select different Brands? a)Yes b)No

5.Which of these jewellery brands are you aware of? Which of these jewellery brands are you currently using? Which Brand would you buy next?

Brand 1.De Beers 2.Nakshatra 3.Tanishq 4.Asmi 5.DDamas 6.Nirvana 7.Kiah 8 Orra 9.Sangini 10.Agni 11.Eros 12.Gilli

Spontaneous

Aided

Using Currently

Desirable