BUSINESS MANAGEMENT INTERNAL ASSESMENT (Higher Level)
How can Orchid Jewelz modify its marketing mix to launch its product in the domestic retail market for branded jewelry?
Word count Research proposal: Main report: Sonakshi Khurana
Acknowledgements
Contents
RESEARCH PROPOSAL Research question-How can Orchidz Jewels modify its marketing mix to launch its product in the domestic retail market for branded jewelry?
Rationale for study-The firm, Orchidz, a manufacturer of diamond jewelry, faced a fall in profits due to the global recession give reference of the article from where data is taken , which caused the domestic retailers and exporters, to whom the firm was supplying to, to cut down on purchases. Considering alternatives, the firm decided that it wanted to enter the retail sector of branded jewelry in the Indian market as they saw a high potential for their firm there. The trends of the Indian markets are changing and more and more people are becoming brand conscious. give refernce Moreover, because the companys USP is their unique and appealing design, it would be beneficial for them as they would be able to attract more number of customers. Being in the retail sector would allow the firm to interact with the customers directly and cater to their needs according to their specifications. This would be a good option, as they would be shortening the distribution chain, which could lead to higher profits for them. Getting a brand identity would give them a competitive edge and they would be recognized in the jewelry market. Theoretical frameworkFor the framework, I would like to take help from the following: -SWOT analysis -Ansoff matrix -STP analysis -4 Ps Methodology-primary research 1. interview with the manager of the firm 2. survey of target audience through questionnaires 3. survey of the retail sector of the market for jewelry -secondary 1. Collect data from the internet if needed 2. read material from books 3. refer to previous research done for market facts Anticipated difficulties- do in tabular form - Not being able to fix interview with the director on the date I decided. reschedule -People not wanting to answer the surveyfind other people - People being suspiciousassure them that I am from school and I am doing it for my internal assessment 4
-no. of people for the survey would probably inadequatetake an estimate -time limitation for doing the reportgive in my best effort Increase the Words as itr has to be around 500 words
Action plan-
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Executive summary With the recent economic turmoil going on and with recession gripping the world, it is getting increasingly difficult for With all this going on, the firm Orchid jewels decided to move into the retail market domestically. Reword as it s not clear
Moving into a new market at such a time seemed like a big challenge for the firm. Explain the importance with pros and cons (2 lines) They also had to come up with an accurate marketing mix to be successful and to get established in the long term. Therefore, I worked on How could Orchid jewelz modify its marketing mix to launch its products in the domestic retail market for branded jewelry? I went about this project by conducting a survey of local women and analyzing the data based on the survey. I took help of some business tools, such as the Ansoff matrix and the STP analysis, to analyze the market. From the research work, it seems that the market would be ready to welcome them as people have started buying more jewelry recently for purposes other than investment. Jewelry is perceived as a luxury good that is also a fashion statement among women today. The firm should go ahead with opening a retail store. The firm does not need to modify its manufacturing as they already manufacture design and quality that meets the demand of people. They just need to modify their promotion. They need to aim at the high-end crowd and present their product as trendy and fashionable. This project has helped me learn a lot about the functioning of the market and helped me gain a broader perspective of business management as a whole. Executive summary -economic turmoil with global recesiion Firm decided to move into domestic retail New- challenge ws to arrive at accurate markting mix- successful Authentic research data to help themarrive at conclusion Main finding- they should go ahead with it Do nth v to modify manufacturing as it meets demand Promotion- high end ppl- trendy fashion jewel Gr8 learning experience- bm lernd thn practical Research ques Scope of research- including methodology Main findings, conclusion, recommendations
Introduction
The firm Orchid jewelz is a jewelry manufacturing company. It was started by Mr. Ashok Sapra and Mrs. Archana Sapra in 2004, and has 8
grown a lot since then. They started of with 3 people but now have an efficient team of 20 employees helping their company grow. When they started off, they were only manufacturing small earrings but now they have moved on to a wide variety of diamond jewelry consisting of rings, pendant sets, bracelets, et cetera. Their USP is their design, which is innovative and unique, and appeals to todays generation. Until now, they had been supplying the jewelry manufactured to retailers locally as well as nationally and to exporters around the country. However, as the times and trends are changing, they are considering opening their own retail outlet under a brand. This will also enable them to expand their business and give a brand identity to their firm. It will also shorten the distribution channel and lead to higher profits for them. They will have the advantage of having the same product too; they will not have to enter a new product range, just diversify it according to the peoples needs. As jewelry is a luxury product, they can keep premium pricing. Give which tools were used and how they helped Ansoff matrix was usedgive refernce to your survey and how the findings are analyzed using these tools Ansoff matrix Products Existing Existin g New Market development Diversification Market penetration New Product development
Markets
Ansoff matrix is basically used to place the firm in one of the above categories, in relation to new or existing products in new or existing markets, in order to form an appropriate growth strategy. It gives a futuristic view. In this case, the firm is launching the same product in a new market so it falls in the market development category. It needs to devise a marketing strategy accordingly.
The firms focus is reaching the target market through a different, more direct distribution channel. It is going from manufacturing to retailing for the same product range. STP analysisSTP stands for Segmenting, Targeting and Positioning. It is done in order to find out what the firm is focusing at. At once, no firm can cater to the needs of all people so they need to recognize the segment of people they want to target and also how will they position their product in the minds of people. Segmenting is breaking up people in small groups according to, for example, demographic, behavioral, geographic and psychographic dimensions. The firm, Orchid jewelz, should segment the market according to demographic and psychographic segments. In the demographic segment, they should concentrate on the income segment in relation to the gender and age group segments. The product line for the firm is specifically for women for different agegroups, such as teens, young adults and adults. According to the psychographic segment, they should focus on status and values. Jewelry is a luxury product and is aimed mainly at the high-class segment. Type of Segment 1 segmentatio nDemographi Age- 16-50 c Gender (f) Income: 30,000 Segment 2 Age- 16-50 Gender (f) below Income: 30,00050,000 Segment 3 Age- 16-50 Gender (f) Income: above 50,000 brand
Psychograph Status: not brand Status: ic conscious conscious
brand Status: conscious
Values: value for Values: fashion Values: fashion money statement statement
Targeting- differentiated marketing Based on the survey (attached) I carried out, I could identify three main segments. According to the firm, the most lucrative one seems to be segment 2. The income level is perfect as people whose income 10
level is below 30000 do not have the purchasing power, and they would also not look at the designs and focus more on the price factor. The income group of above 50,000 is again not appropriate as, as soon as the income level gets high, preferences change to customized jewelry. Also those in segment 2 buy jewelry in accordance with the design as they are more concerned with making a fashion statement and are brand conscious.
PositioningFor this firm, positioning will be done in relation to the income group, age group, status and values. The firm is targeting the income group of 30,000 to 50,000 for the age group of 16-50 yrs. In that segment people are brand-conscious and people are concerned with making a fashion statement. Perception mapQuality High Hig h Price low Bargain brands Economy brands Premium brands Low Cowboy brands
Perception map in generally drawn in order to place the product in one of the above categories in order to find out how the brand is perceived by people. In the perception map, the firm will position itself as a premium brand as the firm offers high quality products at a high price. Placing the product in the premium brand category gives a competitive edge to the firm
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Put this section in analysis of data collected 4 Ps According to the survey, I have formulated this marketing mix for the firm-Product- according to the survey conducted, the product line for Orchid jewelz should be light jewelry made with a mix of precious and semiprecious stones, as the majority prefer that. The most liked metal is white gold so that should be the main base, though there should be products of other metals too. They could have different product range for different age groups to attract a wider audience. They could maybe have exclusive light jewelry for the younger generation and slightly heavier and more tradition for the older generation. Price- as all of the target audience is brand conscious and they buy jewelry mainly for making a fashion statement, they will not mind paying a slightly higher price. In addition, a high price places the product at a higher level in the minds of the people and they start perceiving it as a high quality product. PromotionAccording to the perception map, the brand is to be promoted as a premium brand. Therefore, the firm should position themselves as a high-class brand in peoples minds. In reference to the survey conducted, more people find out about brands through televisions and magazines, so the firm should focus on above-the-line advertisements. Likewise, the firm can place some exclusive advertisement in the magazines, such as Femina or Vogue, which are read by the target market. They can also advertise on television as it makes people more aware about the brand on an everyday basis. 12
They can promote their brand as an upcoming youthful brand, which appeals to women of all ages. They should also let people know that they know the difference between the needs of different age groups and make jewelry according to their needs. They should keep in mind that the jewelry with designs for the younger generation should also appeal to the older generation, as they would be the ones paying for it. They should see the value for their money. In addition, when they open the store, the ambience of it should be sophisticated yet comfortable. People should not feel awkward coming there. Maybe there could be welcome drinks and staff should be at hand always to attend to people. The staff should wait on the customers but should not intrusive, people should get space to just look around too. Place- the company has already identified the place, which is where the crowd goes on a regular basis. I recommend them to stick to that as is it quite a happening and attractive position.
SWOT Analysis Internal factors StrengthsWeaknesses1. specialized in light 1. heavy jewelry not weight jewelry manufactured 2. has good designs, 2. low capital those accepted on a 3. lesser number of skilled larger scale labor 3. manufactures for a large number of retailers OpportunitiesThreats1. recognition through 1. present jewelers in the jewelry fairs brand category 2. chain of retail outlets 2. trend shifting towards 3. giving out franchisees artificial jewelry 4. targeting the 3. competition from international market traditional jewelers *
External factors
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* the firm needs to be vary of the already established competitors such as divine, Kalajee, Motisons, etc. as it would be tough to penetrate the market without a good previous understanding of them. The firm would also need to differentiate themselves from these to make a place for themselves and stay put in the market
Main findings-
real or atificial- under30
real or arificial- over 30
11%
44% 56% real real
atificial
89%
artificial
The majority prefers real jewelry. However, real jewelry is more famous with women over 30 than women under 30.
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heavy or light- under 30
heavy or light- over 30
15%
6%
heavy light
heavy light 85%
94%
Over here too, we can see that the majority prefers light jewelry. However, if the company ever had to consider manufacturing heavy jewelry, they should aim mainly at women above the age of 30.
purpose- below 30
9% 0% 24%
purpose- above 30
6% 3% 31% 22% personal everyday use personal occasional use fashion statememt investment 38% gift
personal everyday use personal occasional use fashion statememt investment
46%
21%
gift
The main purpose of buying jewelry for women below 30 lies in making a fashion statement, whereas for women above 30, jewelry is for occasional use.
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Some people in both categories buy it for everyday use and even few buy it as an investment. Moreover, a very little percentage of people above 30 buy it for gifting.
place of purchase- below 30
5% 25% 45% brand showrooms local market family/friends 25% import 41%
place of purchse- above 30
0% brand showrooms 40% local market
family/friends 19% import
For women below 30, the preferred place for buying jewelry is brand showrooms, then comes the local market and family/friends, and a very few of them import jewelry. For women above 30, family/friends and brand showrooms is the main preference, then is the local market and none of them import.
how often- below 30
within 6 months 40% within a year more than a year 20%
how often- above 30
within 6 months
30%
28%
within a year
30%
52%
more than a year
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Most women below 30 like to stay updated with the current trend, therefore, they buy jewelry more often, whereas most women above 30 give some time before buying new jewelry.
consideration- below 30
3%
consideration- above 30
brand design
10%
14%
17%
2%
14%
brand design style
19% 27%
style price weight
27%
17%
31%
price weight
other
19%
other
When buying jewelry, for both age groups, the main consideration is the design, then style and then price. Other considerations such as weight and brand are important too, but not as much.
material- below 30
22% silver 46% gold gold
32%
material- above 30
9%
silver
32%
white gold
59%
white gold
Women below 30 like white gold, whereas women above 30 like plain gold more. Either age group does not prefer silver so much.
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stones- below 30
14%
stones- above 30
4% semiprecious semiprecious precious 66% both both
30%
54%
32%
precious
Both the age groups prefer a combination of precious and semiprecious jewelry. Then is jewelry made of only diamonds. The least preferred are only other stones.
item- below 30
6% 3% 14% 9% 33%
ring ear-ring pendant chain necklace bracelet 21% 11% 11%
item- above 30
ring 22% ear-ring pendant 11% 24% chain necklace bracelet
35%
The jewelry most famous with all women is earrings, next are rings then pendants. Next come chains, necklaces and bracelets, which are comparatively more liked by women above 30 then women below 30.
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how often do they visit jewelry shows- below 30 all 17% 13% 4% 22% 44% once in six months once a year more than year never
how often do the visit jewelry shows- above 30
14% 4% 4%
all once in six months
32%
once a year
f mof women above 30, most of them attend shows in leall the shows ther. 46% of time longer than that the ones buying for More than
year never
Most of the women below 30 do go to jewelry shows once a year and some more in a period longer than that. Quiet a number of women do not attend shows at all and some attend all the shows there. In the category of women above 30, most of them attend shows in a period of more than a year.
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do they buy jewelry from fairs- below 30
27%
do they buy jewelry from fairs- above 30
16%
yes no 73% 84%
yes no
Most of the people do not buy jewelry from fairs, though a comparatively small percent of them do. If they want to benefit from jewelry fairs then probably they should target more of the younger audience than the older one, keeping in mind that the package and deal should appeal to both as the older ones are going to be the ones buying for the younger ones.
how do they know about brands- below 30
9% 34% 25%
how do they know about brands- above 30
7% 28% 29%
magazines newspapers word of mouth
magazines newspapers word of mouth television
12%
20%
hoardings
17%
19%
television hoardings
Majority of the people hear about brands through the magazines and televisions. Therefore, it would be the wisest to advertise through those mediums. Next come newspapers and word-of-mouth. The company can advertise through the newspaper but on a lesser scale and have to maintain their reputation to benefit from the process of people knowing from each other.
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Recommendations give bulleted I recommend Orchid jewelz to go ahead and open a retail store as all the findings supports that notion. According to the survey and analysis, I think that the firm should stick to its current product range and focus mainly on strong promotion techniques. They need to make people aware and create a brand image for their company. The firm should keep in mind the competitors who could hamper their growth, as they are already long since established, but if the firm differentiates and approaches the market in a systematic way, it would not be very difficult to establish and gain customer loyalty. It is also a good time for the firm to focus on the domestic market as currently the world is in a state of recession. Due to currency getting unstable, more and more people are looking at jewelry for investment purpose.
Bibliography Appen- sm kinda article Pics Survey Brochure Swot Into abt jewel wt company does- exact details Survey Product line Ads To certify tht I have workd with thm on this N provided practial suggest
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