Summertrainingprojectreportonconsumerbuyingbehaviourofgoldtanishq 100704130619-phpapp01

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

Buying behaviour of Gold

Submission On: 20th November, 2009

DECLARATION

Marketing Research GIDC ROFEL Business School
Page 2


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

Page 3


Jay Desai

Rohan Shahi

Page 4


ACKNOWLEDGEMENT

We would like to express our gratitude to:

(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.

Page 5


Thanking You,

Grishma Tandel

Jairaj tailor

Jay Desai

Rohan Shahi

Page 6


ITENARY

FExecutive Summary
FIntroduction
i) Tanishq profile
FAbout The Research
i) Purpose Of The Research
Page 7


ii) Problem Of The Research
iii) Objective Of The Research
iv) Limitations Of The Research
v) Significance Of The Research
FSample
i) Sampling Frame
ii) Sampling Unit
iii) Sample Size
iv) Sample Size Selection
F Research Methodology
i) Research Tools
a) Exploratory Research
• Questionnaire Survey
a) Descriptive Research
FDetailed Findings
FConclusion
FRecommendation & Conclusion
FBibliography

Page 8


EXECUTIVE SUMMARY

Page 9


INTRODUCTION

Page 10


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
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
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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.

Page 12


Growth of Tanishq

Revenue in million Rupees

Page 13


SWOT ANALYSIS

STRENGTH OPPORTUNITIES
Purity (karat meter) Global markets
Distribution network and Low cost jewellery
retailing store Customized jewellery
Award winning designs designs
Diversity in jewellery Concentrate on Gen-X by
gold/diamond/platinum having trendy jewellery
Competitive prices Expand retail stores

WEAKNESS THREATS
Capture Rs 70,000-crore Competition
Escalated gold costs lower Lack of Skilled workers
margins Gold not seen as s source
of investment. (Luxury is
needed).

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Purity of jwellrey through karat meter is still the sign of total
purity.
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.

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• 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.
People are more concerned about design and luxury.

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Three Major Products Of Tanishq
In GOLD

 Zoya

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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Page 18


ABOUT THE RESEARCH

THE PURPOSE OF THE RESEARCH

The basic purpose of this research is to find the buying
behaviour of people of vapi toward gold.

Page 19


PROBLEM

Page 20


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.

.

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OBJECTIVES

The objectives of the study are as follows:
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.

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Limitations

 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
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a) Price doesnot affect the buying of gold.

b) Quality of gold does not effect the buying of gold

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:

Page 25


A Sampling frame consists of a list of item
from which the sample is to be drawn.

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:

Page 26


The sample size of our research was 150 but
only 121 people have visited tanishq store.

Sample Size Selection:

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:
Page 28


The research tool used for this research is
PRIMARY DATA

In primary data the following research design
is being followed:

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 research
b) Descriptive research

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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.

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 gold
c) 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.

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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) Price
2) Quality
3) Service
4) Availability of pattern
5) Proximity to market
6) Ambiance of store

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DETAILED FINDINGS

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Over All Sample size

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

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.

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Annual income of Respondents

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

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The above charts gives us the detail of people who
visits Tanishq for repurchase.

Hypothesis Testing

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2 2
X = ∑ (o-e) / e

1)Price does not affect the buying of gold.

Price
Particular 1 2 3 4 5 Total
1 3 12 11 4 0 30
2 8 15 31 12 0 66
3 1 0 6 7 4 18
4 0 0 1 1 2 4
5 0 0 0 1 2 3
Total 12 27 49 25 8 121

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Observed expected o-e 2(o-e) 2(o-e)/e
3 2.97 0.03 0.0009 0.000303
12 6.69 5.31 28.1961 4.214664
11 12.14 -1.14 1.2996 0.107051
4 6.19 -2.19 4.7961 0.774814
0 1.98 -1.98 3.9204 1.98
8 6.54 1.46 2.1316 0.325933
15 14.72 0.28 0.0784 0.005326
31 26.2 4.8 23.04 0.879389
12 13.63 -1.63 2.6569 0.19493
0 4.36 -4.36 19.0096 4.36
1 1.78 -0.78 0.6084 0.341798
0 4.01 -4.01 16.0801 4.01
6 7.28 -1.28 1.6384 0.225055
7 3.71 3.29 10.8241 2.917547
4 1.19 2.81 7.8961 6.635378
0 0.39 -0.39 0.1521 0.39
0 0.89 -0.89 0.7921 0.89
1 1.61 -0.61 0.3721 0.231118
1 0.82 0.18 0.0324 0.039512
2 0.26 1.74 3.0276 11.64462
0 0.29 -0.29 0.0841 0.29
0 0.66 -0.66 0.4356 0.66
0 1.21 -1.21 1.4641 1.21
1 0.61 0.39 0.1521 0.249344
2 0.19 1.81 3.2761 17.24263
Total 59.8194

The hypothesis of these question is that the price does not
effect the buying behavior of consumer that is Ho.

So from the calculation we got the value of H0 as 59.8149

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.
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The value for the 16 is 26.3

So Ho>H1 so hypothesis is rejected.

2) Quality of gold does not effect the buying of gold

Quality
Particular 1 2 3 4 5 total
1 3 2 2 0 0 7
2 1 4 5 2 0 12
3 2 10 20 11 3 46
4 6 9 18 8 5 46
5 0 2 4 4 0 10
Total 12 27 49 25 8 121

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3 0.69 2.31 5.3361 7.733478
2 1.56 0.44 0.1936 0.124103
2 2.83 -0.83 0.6889 0.243428
0 1.44 -1.44 2.0736 1.44
0 0.46 -0.46 0.2116 0.46
1 1.19 -0.19 0.0361 0.030336
4 2.67 1.33 1.7689 0.662509
5 4.85 0.15 0.0225 0.004639
2 2.47 -0.47 0.2209 0.089433
0 0.79 -0.79 0.6241 0.79
2 4.56 -2.56 6.5536 1.437193
10 10.26 -0.26 0.0676 0.006589
20 18.62 1.38 1.9044 0.102277
11 9.5 1.5 2.25 0.236842
3 3.04 -0.04 0.0016 0.000526
6 4.56 1.44 2.0736 0.454737
9 10.26 -1.26 1.5876 0.154737
18 18.62 -0.62 0.3844 0.020644
8 9.5 -1.5 2.25 0.236842
5 3.04 1.96 3.8416 1.263684
0 0.99 -0.99 0.9801 0.99
2 2.23 -0.23 0.0529 0.023722
4 4.04 -0.04 0.0016 0.000396
4 2.06 1.94 3.7636 1.82699
0 0.66 -0.66 0.4356 0.66
Total 18.99311
The hypothesis of these question is that the Quality does not




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So Ho<H1 so hypothesis is accepted.

So Quality does matter in buying gold.

3) Service does not affect buying behavior of consumer.

Particula
r 1 2 3 4 5 total
1 0 0 1 0 0 1
2 1 0 0 0 0 1
3 1 6 5 8 1 21
4 6 15 33 10 6 70
5 4 6 10 7 1 28
Total 12 27 49 25 8 121

Service

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0 0.09 -0.09 0.0081 0.09
0 0.22 -0.22 0.0484 0.22
1 0.4 0.6 0.36 0.9
0 0.2 -0.2 0.04 0.2
0 0.06 -0.06 0.0036 0.06
1 0.09 0.91 0.8281 9.201111
0 0.22 -0.22 0.0484 0.22
0 0.4 -0.4 0.16 0.4
0 0.2 -0.2 0.04 0.2
0 0.06 -0.06 0.0036 0.06
1 2.08 -1.08 1.1664 0.560769
6 4.68 1.32 1.7424 0.372308
5 8.5 -3.5 12.25 1.441176
8 4.33 3.67 13.4689 3.1106
1 1.3 -0.3 0.09 0.069231
6 6.94 -0.94 0.8836 0.12732
15 15.62 -0.62 0.3844 0.024609
33 18.35 14.65 214.6225 11.69605
10 14.46 -4.46 19.8916 1.375629
6 4.63 1.37 1.8769 0.405378
4 2.78 1.22 1.4884 0.535396
6 6.25 -0.25 0.0625 0.01
10 11.34 -1.34 1.7956 0.158342
7 5.79 1.21 1.4641 0.252867
1 1.85 -0.85 0.7225 0.390541
32.08133
The hypothesis of these question is that the service does not




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So service does matter in buying gold.

4 ) Pattern does not effect effect buying behavior
of consumers.
1 0 2 4 0 0 6
2 5 7 16 8 3 39
3 3 11 16 7 2 39
4 3 6 4 6 1 20
5 1 1 9 4 1 17
Total 13 27 49 25 7 121

PATTERN
0 0.65 -0.65 0.4225 0.65
2 1.34 0.66 0.4356 0.325075

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4 0.45 3.55 12.6025 28.00556
0 1.25 -1.25 1.5625 1.25
0 0.35 -0.35 0.1225 0.35
5 4.19 0.81 0.6561 0.156587
7 8.7 -1.7 2.89 0.332184
16 2.9 13.1 171.61 59.17586
8 8.06 -0.06 0.0036 0.000447
3 2.26 0.74 0.5476 0.242301
3 4.19 -1.19 1.4161 0.337971
11 8.7 2.3 5.29 0.608046
16 2.9 13.1 171.61 59.17586
7 8.06 -1.06 1.1236 0.139404
2 2.26 -0.26 0.0676 0.029912
3 2.15 0.85 0.7225 0.336047
6 4.46 1.54 2.3716 0.531749
4 1.49 2.51 6.3001 4.228255
6 4.13 1.87 3.4969 0.846707
1 1.16 -0.16 0.0256 0.022069
2 1.83 0.17 0.0289 0.015792
1 3.79 -2.79 7.7841 2.053852
9 1.26 7.74 59.9076 47.54571
4 3.51 0.49 0.2401 0.068405
1 0.98 0.02 0.0004 0.000408
206.4282

4) Pattern does not effect buying behavior of gold.

The hypothesis of these question is that the pattern does not

So from the calculation we got the value of H0 206.4282



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So it has been analyzed that Tanishq has good variety of
pattern.

5) Proximity does not affect buying of gold.

Particul
ar 1 2 3 4 5 total
1 2 0 6 2 0 10
2 2 2 3 0 1 8
3 4 6 18 8 4 40
4 3 7 14 9 1 34
5 1 12 8 6 2 29
Total 12 27 49 25 8 121

Proximity
2 0.99 1.01 1.0201 1.030404
0 2.23 -2.23 4.9729 2.23
6 3.88 2.12 4.4944 1.158351
2 2.07 -0.07 0.0049 0.002367
0 0.67 -0.67 0.4489 0.67
2 0.79 1.21 1.4641 1.853291
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2 0.79 1.21 1.4641 1.853291
3 3.11 -0.11 0.0121 0.003891
0 1.65 -1.65 2.7225 1.65
1 0.53 0.47 0.2209 0.416792
4 3.97 0.03 0.0009 0.000227
6 8.93 -2.93 8.5849 0.961355
18 15.54 2.46 6.0516 0.389421
8 8.27 -0.27 0.0729 0.008815
4 2.64 1.36 1.8496 0.700606
3 3.37 -0.37 0.1369 0.040623
7 7.59 -0.59 0.3481 0.045863
14 13.21 0.79 0.6241 0.047245
9 7.02 1.98 3.9204 0.558462
1 2.25 -1.25 1.5625 0.694444
1 2.88 -1.88 3.5344 1.227222
12 6.47 5.53 30.5809 4.726569
8 11.26 -3.26 10.6276 0.943837
6 5.99 0.01 1E-04 1.67E-05
2 1.92 0.08 0.0064 0.003333
Total 21.21642

The hypothesis of these question is that the proximity does not





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6) Ambiance does not affect buying behavior of gold.

1 1 1 0 4 1 7
2 0 2 6 2 0 10
3 5 6 11 6 2 30
4 3 9 17 8 11 38
5 4 9 14 5 4 36
Total 13 27 48 25 8 121

Observed Expected o-e 2(o-e) 2(o-e)/e
1 0.75 0.25 0.0625 0.083333
1 1.56 -0.56 0.3136 0.201026
0 2.78 -2.78 7.7284 2.78
4 1.45 2.55 6.5025 4.484483
1 0.46 0.54 0.2916 0.633913
0 1.07 -1.07 1.1449 1.07
2 2.23 -0.23 0.0529 0.023722
6 3.97 2.03 4.1209 1.03801
2 2.07 -0.07 0.0049 0.002367

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0 0.66 -0.66 0.4356 0.66
5 3.22 1.78 3.1684 0.983975
6 6.69 -0.69 0.4761 0.071166
11 11.9 -0.9 0.81 0.068067
6 6.2 -0.2 0.04 0.006452
2 1.98 0.02 0.0004 0.000202
3 4.08 -1.08 1.1664 0.285882
9 8.48 0.52 0.2704 0.031887
17 15.07 1.93 3.7249 0.247173
8 7.85 0.15 0.0225 0.002866
1 2.51 -1.51 2.2801 0.908406
4 3.87 0.13 0.0169 0.004367
9 8.03 0.97 0.9409 0.117173
14 14.28 -0.28 0.0784 0.00549
5 7.44 -2.44 5.9536 0.800215
4 2.38 1.62 2.6244 1.102689
Total 15.61287

The hypothesis of these question is that the proximity does not





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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 1 ) Name:-________________________________________________________

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Q 2) Gender - male female

Q 3) Age :- _________________

Q 4) Occupation: - Service Business Others

Others:-__________________________

Q 5) Monthly average INCOME?

5000-10000 10000-20000 20000-30000
30000 & above

Q 6) how often you visit jewellery store?

Once a month once a year

On Occasion

Q 7) You Buy jewellery from

Place Store Name

Vapi ___________________

Valsad ___________________

Surat ___________________

Bombay ___________________

Page 49


Others ___________________

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 ?

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?
Page 50


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.Go Good Avera Ba V.ba
od ge d d

a) Price

b) Purity & Quality of Gold

c) Service Offered

d) Patterns Available

e) Location of Store

f) Ambiance of store

Q 14) During Re-Purchase you often go to Tanishq?

Yes No

Q 15) Would you recommend others for Buying Tanishq Products?

Yes No

Q 16) Rate tanishq on over all basis?
Page 51


Particular V.Go Good Avera Ba V.ba
od ge d d

Tanishq As a Store

Thank You

Page 52


FINDINGS

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.

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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.

Page 54


Recommendation

&

Conclusion

Conclusion
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

Page 55


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
than selling more of ornaments.

Page 56


Bibliography
Tanishq Website

Tanishq Outlet

Marketing Research TextBook

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