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PPRREEPPAARREEDD BBYY:: E-MBA GROUP VII

SAMEER MAYEKAR 80118110061

ZELDA KOLAH 80118110049

PRADEEP SRIVASTAV 80118110106

NANDLAL SINGH 80118110104

DEEPTI PATEL 80118110077

HUSSAIN LOKHANDWALA 80118110116

BHARAT PARULEKAR 80118110075

SUDHIR JOSHI 80118110042

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TABLE OF CONTENTS

EXECUTIVE SUMMARY ..................................................................................................................................... 4

HISTORY .......................................................................................................................................................... 5

GEOGRAPHICAL SETTING ................................................................................................................................. 5

SOCIAL INSTITUTIONS ...................................................................................................................................... 6

FAMILY.................................................................................................................................................... 6

EDUCATION ............................................................................................................................................. 6

POLITICAL SYSTEM ................................................................................................................................... 7

ILEGAL SYSTEM ........................................................................................................................................ 7

SOCIAL ORGANIZATIONS ................................................................................................................................... 8

ITALIAN FAMILY VALUES .......................................................................................................................... 8

RELIGION AND AESTHETICS ...................................................................................................................... 9

DIET AND NUTRITION ............................................................................................................................ 10

HOUSING .............................................................................................................................................. 10

RECREATION, SPORTS, AND OTHER LEISURE ACTIVITIES .......................................................................... 11

HEALTH CARE ........................................................................................................................................ 11

LANGUAGE ............................................................................................................................................ 11

ECONOMIC ANALYSIS .................................................................................................................................... 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

OBJECTIVE ............................................................................................................................................. 25

TAG LINE ............................................................................................................................................... 25

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TARGET MARKET ................................................................................................................................... 25

SWOT .................................................................................................................................................... 27

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

PRICE DETERMINATION ................................................................................................................................. 31

TERMS OF CONTRACT .................................................................................................................................... 32

BUDGET & FINANCES ..................................................................................................................................... 32

TARGETS & CONTROLS................................................................................................................................... 32

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Executive Summary

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)

15-64 years: 65.9% (male 19,888,901/female 20,330,495)

65 years and over: 20.3% (male 5,248,418/female 7,109,074) (2011 est.)

Median Age Total - 43.5 years | male: 42.4 years | female: 44.7 years (2011 est.)

Economic Statistics and Activity

Gross National Product $1.774 trillion (2010 est.) | country comparison to the world: 11

$1.751 trillion (2009 est.) | $1.847 trillion (2008 est.)

Gross Domestic Product 1.3% (2010 est.) country comparison to the world: 163

-5.2% (2009 est.) | -1.3% (2008 est.

Personal Income $30,500 (2010 est.) country comparison to the world: 43

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(per capita) $30,100 (2009 est.) | $31,800 (2008 est.)

Average Family Income lowest 10%: 2.3%

highest 10%: 26.8% (2000)

Distribution of Wealth 32 (2006) country comparison to the world: 107

27.3 (1995)

Transportation

Surface Transportation Airport 132 (2010) country comparison to the world: 43

Airport (with paved runways)

total: 101 | over 3,047 m: 9 | 2,438 to 3,047 m: 30

1,524 to 2,437 m: 18 | 914 to 1,523 m: 31 | under 914 m: 13 (2010)

Airports (with unpaved runways)

total: 31 | 1,524 to 2,437 m: 1 | 914 to 1,523 m: 11 | under 914 m: 19 (2010)

Heliports

6 (2010)

Pipelines

gas 18,348 km; oil 1,241 km (2010)

Railways

total: 20,254 km country comparison to the world: 13

standard gauge: 18,611 km 1.435-m gauge (12,662 km electrified)

narrow gauge: 123 km 1.000-m gauge (123 km electrified); 1,290 km 0.950-

m gauge (151 km electrified); 231 km 0.850-m gauge (2010)

Roadways

total: 487,700 km country comparison to the world: 13

paved: 487,700 km (includes 6,700 km of expressways) (2007)

Waterways

2,400 km (used for commercial traffic; of limited overall value compared to

road and rail) (2009) country comparison to the world: 36

Merchant Marine

total: 667 country comparison to the world: 17

by type: bulk carrier 81, cargo 47, carrier 1, chemical tanker 169, container

22, liquefied gas 25, passenger 23, passenger/cargo 160, petroleum tanker

56, refrigerated cargo 4, roll on/roll off 34, specialized tanker 11, vehicle

carrier 34 foreign-owned: 78 (Denmark 4, France 2, Germany 1, Greece 8,

Luxembourg 12, Nigeria 1, Norway 6, Sweden 1, Switzerland 6, Taiwan 11,

Turkey 3, UK 2, US 21) registered in other countries: 213 (Bahamas 5, Belize

3, Cayman Islands 6, Cyprus 6, Georgia 2, Gibraltar 4, Greece 5, Kiribati 1,

Liberia 48, Malta 52, Marshall Islands 1, Netherlands 9, Norway 3, Panama

23, Portugal 10, Russia 9, Saint Kitts and Nevis 1, Saint Vincent and the

Grenadines 5, Singapore 3, Slovakia 2, Spain 1, Sweden 5, Turkey 2, UK 4,

unknown 3) (2010)

Port and Terminals

Augusta, Cagliari, Genoa, Livorno, Taranto, Trieste, Venice oil

terminals: Melilli (Santa Panagia) oil terminal, Sarroch oil terminal

Communication System

Telephone Line Main Lines

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21.6 million (2010) country comparison to the world: 13

Cellular Lines

82 million (2010) country comparison to the world: 13

Telephone System

general assessment: modern, well developed, fast; fully automated

telephone, telex, and data services

domestic: high-capacity cable and microwave radio relay trunks

international: country code - 39; a series of submarine cables provide links

to Asia, Middle East, Europe, North Africa, and US; satellite earth stations - 3

Intelsat (with a total of 5 antennas - 3 for Atlantic Ocean and 2 for Indian

Ocean), 1 Inmarsat (Atlantic Ocean region), and NA Eutelsat

Broadcast Media

two Italian media giants - the publicly-owned Radiotelevisione Italiana (RAI)

with 3 national terrestrial stations and privately-owned Mediaset with 3

national terrestrial stations - dominate; additional broadcasts by a large

number of private stations and Sky Italia - a satellite TV network; RAI

operates 3 AM/FM nationwide radio stations; some 1,300 commercial radio

stations (2007)

Internet

29.235 million (2009) country comparison to the world: 13

Working Conditions

Principal Industries Tourism, machinery, iron and steel, chemicals, food processing, textiles,

motor vehicles, clothing, footwear, ceramics

Foreign Investment

Stock of direct foreign

investment - at home

$403 billion (31 December 2010 est.) country comparison to the world: 13

$394 billion (31 December 2009 est.)

Stock of direct foreign

investment - abroad:

$601.4 billion (31 December 2010 est.) country comparison to the world: 12

$578.1 billion (31 December 2009 est.)

International Trade Statistics

The 2008 recession decreased Italy's global trade volumes significantly. Its export volumes decreased from

$546.9 billion in 2008 to $369 billion in 2010. However, the country's economy remained relatively strong

and ranked 8th in the world for export volumes.

Main exported commodities

include

Engineering products | Textiles and clothing | Production machinery | Motor

vehicles | Transport equipment | Chemicals | Food | Beverages and tobacco |

Minerals and nonferrous metals

Main Export Partners Germany | France | Spain | US | UK

Main imported

commodities include

Engineering products | Chemicals | Transport equipment | Energy products |

Minerals and nonferrous metals | Textiles and clothing | Food and Beverages

Tobacco

Main Import Partners Germany| France | China | Netherlands | Libya |Russia

Trade Restrictions

Italy Import Prohibitions

Following items are prohibited in Italy

Atlantic red tuna fish (Thunnus Thynnus) originating from Belize, Panama,

and Honduras | Toys and games containing copper sulfate | Items having a

flexible metal blade entirely contained in a plastic, paper, or fabric sheath |

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Illicit Narcotics and Drugs | All forms of asbestos fibers | L-trytophane and

any items having L-trytophane as an ingredient | Rubber erasers that are

similar in appearance to food products that are easily ingested | Medical

thermometers containing mercury intended for human consumption |

Certain U.S. Beef hormones | Tobacco and Manufactured Tobacco substitutes

All products containing the biocide dimethyl fumarate (DMF)

Free Export No restriction for the quantity and value of exported items when leaving to

non-E.U. country.

Restricted

(dependent on declaring)

Currency - no restrictions if leaving for another EU country. Declarable for

all travelling outside EU when the amount exceeds 10.000 euro or

equivalent in another currency.

Labour Force

24.99 million (2010 est.)country comparison to the world: 25

By occupation agriculture: 4.2% | industry: 30.7% | services: 65.1% (2005)

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).

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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

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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

for inequalities of power.

IIttaallyy -- AAss iilllluussttrraatteedd iinn tthhee ggrraapphh tthhee PPDDII iiss eeqquuaall

iitt ssiiggnniiffiieess tthhaatt tthhee ppoowweerr iiss eeqquuaallllyy ddiissttrriibbuutteedd

aaccrroossss ssttrraattaa ooff ppooppuullaattiioonn..

Individualism V/s Collectivism (IDV)

The high side of this dimension, called Individualism, can be defined as a preference for a loosely-knit social

framework in which individuals are expected to take care of themselves and their immediate families only. Its

opposite, Collectivism, represents a preference for a tightly-knit framework in society in which individuals

can expect their relatives or members of a particular in-group to look after them in exchange for

unquestioning loyalty. A society's position on this dimension is reflected in whether people’s self-image is

defined in terms of “I” or “we.”

IIttaallyy –– AAss iilllluussttrraatteedd iinn tthhee ggrraapphh tthhee IIDDVV iiss mmoorree wwhhiicchh ssiiggnniiffiieess ffaammiillyy iiss nnuucclleeaarr,, ppeeooppllee aarree sseellff

cceenntteerreedd,, sseellff cceennttrriicc aanndd sseellff ssuuffffiicciieenntt..

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Masculinity V/s Femininity (MAS)

The masculinity side of this dimension represents a preference in society for achievement, heroism,

assertiveness and material reward for success. Society at large is more competitive. Its opposite, femininity,

stands for a preference for cooperation, modesty, caring for the weak and quality of life. Society at large is

more consensus-oriented.

IIttaallyy –– AAss iilllluussttrraatteedd iinn tthhee ggrraapphh tthhee MMAASS iiss mmoorree wwhhiicchh ssiiggnniiffiieess tthhaatt IIttaalliiaannss aarree wwoorrkkaahhoolliiccss,, ccaarreeeerr

oorriieenntteedd aanndd aaggggrreessssiivvee ddeecciissiioonn mmaakkeerrss..

Uncertainty Avoidance (UAI)

The uncertainty avoidance dimension expresses the degree to which the members of a society feel

uncomfortable with uncertainty and ambiguity. The fundamental issue here is how a society deals with the

fact that the future can never be known: should we try to control the future or just let it happen? Countries

exhibiting strong UAI maintain rigid codes of belief and behaviour and are

intolerant of unorthodox behaviour and ideas. Weak UAI societies maintain a more relaxed attitude in which

practice counts more than principles.

IIttaallyy –– AAss iilllluussttrraatteedd iinn tthhee ggrraapphh tthhee UUAAII iiss hhiigghh wwhhiicchh ssiiggnniiffiieess tthhaatt tthhee ppeeooppllee iinn IIttaallyy aabbiiddee bbyy tthhee rruullee

bbooookk,, tthheeyy aarree nnoott rriisskk ttaakkeerrss

Long term V/s Short Term Orientation (LTO)

The long-term orientation dimension can be interpreted as dealing with society’s search for virtue. Societies

with a short-term orientation generally have a strong concern with establishing the absolute Truth. They are

normative in their thinking. They exhibit great respect for traditions, a relatively small propensity to save for

the future, and a focus on achieving quick results. In societies with a long-term orientation, people believe

that truth depends very much on situation, context and time. They show an ability to adapt traditions to

changed conditions, a strong propensity to save and invest thriftiness, and perseverance in achieving result.

IIttaallyy –– AAss iilllluussttrraatteedd iinn tthhee ggrraapphh tthhee LLTTOO iiss llooww wwhhiicchh ssiiggnniiffiieess tthhaatt IIttaalliiaannss aarree mmoorree ttrraaddiittiioonnaall,, tthheeyy

bbeelliieevvee iinn qquuiicckk rreessuullttss,, tthheeyy ddoo nnoott ccoonncceennttrraattee oonn ffuuttuurree bbeenneeffiittss..

[LAUNCH TANISHQ IN ITALY] GROUP VII

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SWOT

SSTTRREENNGGHHTTSS WWEEAAKKNNEESSSS

- Unique designs and construction methods

through innovations

- 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.

DEFINE

MEASURE

ANALYSEIMPROVE

CONTROL