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Unit 2: Demand Analysis

comes up with all kinds of schemes like a jewellery exhibition which brings fresh talent Notes
to the forefront, launched a nationwide jewellery design competition on May 22nd 2004,
‘Get Gold free with Diamonds’ promotional offer across all 66 exclusive Tanishq boutiques
in India. Its also specially designed the three crowns for the Ponds Femina Miss India
Contest this year. It reached out to the target group through exclusive working women’s
meets, where well known career women spoke about issues relevant to working women.
In addition, ‘Tanishq Collection-G’ ran joint promotions with brands such as L’Oreal
and Wills Lifestyle, which it believed appeal to a similar set of consumers. Tanishq has
successful stimulated demand for jewellery throughout the year through launches of new
jewellery collections, a range of exchange programs and other offers (such as our recently
concluded “Impure to Pure” exchange offer) and a number of in-store events. As a result
of these efforts, even while the market for jewellery declined by more than 15% last year,
Tanishq grew by 40% for the third successive year. Amongst the most recent initiatives
of Tanishq has been the targeting of the wedding market by making special offers on
wedding jewellery. This promotional scheme has had the masses thronging in, in very
large numbers. It also got the 4th Annual Lycra Images Fashion Awards in the Jewellery
category.
Discounts
Discounts play a major role in determining the demand for a product. Tanishq periodically
offers discounts. In 2002 it offered a vast gamut of discounts in its showrooms in Bihar
during the festival of Dhanteras resulting in sales of ` 5 crore in one particular store. During
its fifth anniversary celebrations Tanishq offered discounts to customers, and the response

was so overwhelming that extra security was called to handle the crowd even before the
store opened. At select points of time in the year Tanishq also offers 20%-40% discount on
making charges, which is also a large crowd puller.
Guarantee
Tanishq has managed to establish its position in the market because its quality products

are backed by a guarantee certificate. Each item of jewellery that is sold is accompanied
by a guarantee card that states the weight of the gold/platinum as well as the cartage
of the gemstones used. In case of any discrepancy the company is liable for legal action.

All diamonds used are VVS certified, and the platinum is passed by the offi cial Platinum
Authority of India. 100% purity backed by an ironclad guarantee is thus the hallmark
of Tanishq jewellery. This is a major demand inducer as the traditional jewelers are
increasingly fudging on such things.

Question

Analyse the role of other factors (other than price of products) in influencing the demand
for Tanshiq’s products.

2.1.2 Types of Goods and Demand

For a purposeful demand analysis for decision-making, you should be able to classify the large
number of goods and services available in the economy. Policy decisions are also facilitated by
an understanding of demand at various levels of aggregation.

A classification in these respects is as follows:
1. Consumer goods and producer: Goods and services used for fi nal consumption are called
consumer goods. These include those consumed by human beings, animals, birds, etc.
Producer goods refer to the goods used for production of other goods, like plant and
machines, factory buildings, services of employees, raw materials, etc.

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