In simple terms methodology can be defined as, it is used to give a clear cut idea on what the
researcher is carrying out his or her research. In order to plan in a right point of time and to
advance the research work methodology makes the right platform to the researcher to
mapping out the research work in relevance to make solid plans.
More over methodology guides the researcher to involve and to be active in his or her
particular field of enquiry. Most of the situations the aim of the research and the research
topic wont be same at all time it varies from its objectives and flow of the research but by
adopting a suitable methodology this can be achieved.
Right from selecting the topic and carrying out till recommendations research methodology
drives the researcher in the right track. The entire research plan is based on the concept of
right methodology.
Moreover through methodology the external environment constitutes the research by giving a
depth idea on setting the right research objective, followed by literature point of view, based
on that chosen analysis through interviews or questionnaires findings will be obtained and
finally concluded message by this research.
INTRODUCTION
As India makes rapid progress in the retail arena, the Indian Jewellery market is
undergoing a gradual metamorphosis from unorganized to organized formats. The jewellery
business in India is estimated to beat Rs. 50,000crores. According to the independent
estimation studies conducted by World Gold Council & Mckinsey, out of the overall market
share, the share of organized jewellery market is less than Rs. 1,000crores. This accounts to
about 2-3 % of the total market share. But given that this is a relatively new segment of the
market, it is poised to grow. Jewellery retailing is moving from a Storehouse of value to a
Precious fashion accessory. Plain gold is gradually easing its stranglehold on the Indian
consumer psyche to give way to diamonds, platinum and coloured gemstones. The way
jewellery was worn before is undergoing a tremendous change. Traditional designs are
yielding to modern jewellery, heavy gold is giving way to light and simple designs.
Consumers are more quality conscious than ever before. The jewellery market is one of the
largest consumer sectors in the country- larger than telecom, automobiles, and apparel and
perhaps second only to the foods sector. Interestingly, organized retailers have attempted to
understand the market, anticipate social change and strategies appropriately. They have
ceaselessly endeavoured to derive the formulae of What the consumer wants?
The young Indian woman who is the prime market for the organized retailers differs
from the traditional jewellery customer in many ways as enumerated below- She is well educated and more in tune with international trends
- Increase in working women with high disposable incomes
- Greater mobility
- Less constrained by traditions
All these reasons and more ensure that the modern Indian woman is looking for
jewellery from a perspective different from the past. In addition, organized retailing offers
quality products, follows standardized practices & uniform pricing strategy. Organized retail
formats work on transparent policies that are not necessarily available at the traditional
jewellery shops. Today, goods and services offered by any retailer are strongly driven by
their identified Target Group. There are several examples of retailers who are drawing in
consumers either across a wide swath or a segment of socio-economic classification, clearly
defined by them. This has been the first step towards organized jewellery retailing in India. In
a short span of time, organized retailers have successfully implemented a change in the
buying pattern of the Indian consumers. This is evident from the shift from the traditional
jeweller to the jeweller with an identity. This shift clearly indicates a change in viewpoint of
jewellery as a commodity to brand identification.
OBJECTIVES
1. To study and understand the buying behavior of consumers for branded and non
branded jewellery
2. To find the difference between perceptions, opinion and behavior of branded and nonbranded jewellery buyers.
3. To know the major players of jewellery industry
4. To have an idea about parameters consumer consider while buying jewellery
5. To have knowledge about demographic segments
6. To know the marketing strategies used by various jewellery brands to reach customers
7. To know the knowledge level of customers regarding the jewellery brands available in
the market
RESEARCH PROBLEM
What kind of jewellery designs are preferred by the consumers, traditional (non-branded) or
branded?
HYPOTHESIS
1. The income level of the buyers has significant impact on the type of jewellery
purchased by them.
2. The expectations of the buyers from the jewelers remain the same in every situation.
3. Buyers make purchases only during some occasion like marriages, gifts, etc.
4. More of female buyers are inclined towards the new designs introduced by the
branded jewelers.
5. The selection of jeweler has significant relation with the geographical location of
buyer.
6. The knowledge about the branded jewelers is due to the advertisements floating on air
or there are other sources of information also.
7. The price of gold and other precious stones also play a significant role in the
purchasing procedure.
Type of research
Exploratory
Qualitative
METHODOLOGY
As a part of the study, we reached out to the people at various locations like shopping
malls, bazaars, fun-filled locations and side-by-side approached family members, relatives
and friends for the smooth running of data collection. Primary data has been the first and
foremost method of data collection and it has been done through a questionnaire. A sample of
50 respondents was randomly selected including students, housewives, working women and
men. Respondents of various age groups were included to know the variations in the response
as we would like to know does age also play a significant role in the buying behaviour of
jewellery. The raw data collected by questionnaire will be then transferred to SPSS which
will help in easily analyzing the collected data and coming to a conclusion about the buying
behaviour of consumers. The central tendency techniques like mean, median and mode will
be helpful in finding the common perception and general liking of respondents towards
branded or non- branded jewellery. The significance level has been kept at 5 percent to avoid
various errors chances. Various tools and techniques of SPSS will be used to analyze or
establish relationship between various statements and to prove the hypothesis formulated
earlier.
LITERATURE REVIEW
G o l d J e w e l l e r y Ma r ke t i n I n d i a
Before the liberalization of the Indian economy in 1991, only the Minerals and Metals
Trading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to
import gold. The abolition of the Gold Control Act in 1992, allowed large export houses to
import gold freely Exporters in export processing zones were allowed to sell 10 percent of
their produce in the domestic market. In 1993, gold and diamond mining were opened up for
private investors and foreign investors were allowed to own half the equity in mining
ventures. In 1997, overseas banks and bullion suppliers were also allowed to import gold into
India. These measures led to the entry of foreign players like DeBeers, Tiffany and Cartiers
into the Indian market. In the 1990s, the number of retail jewellery outlets in India increased
greatly due to the abolition of the Gold Control Act.
This led to a highly fragmented and unorganized jewellery market with an estimated
100,000 workshops supplying over 350,000 retailers, mostly family-owned, single shop
operations. In 2001, India had the highest demand for gold in the world; 855 tons were
consumed a year, 95% of which was used for jewellery. The bulk of the jewellery purchased
in India was designed in the traditional Indian style. Jewellery was fabricated mainly in 18,
22 and 24-carat gold. As Hallmarking was not very common in India, under-carat age was
prevalent. According to a survey done by the Bureau of Indian Standards (BIS), most gold
jewellery advertised in India as 22-carat was of a lesser quality. Over 80% of the jewelers
sold gold jewellery ranging from 13.5 carats to 18 carats as22-carat gold jewellery. The late
1990s saw a number of branded jewellery players entering the Indian market. Titan sold gold
jewellery under the brand name Tanishq, while Gitanjali Jewels, a Mumbai-based jewellery
exporter, sold 18-carat gold jewellery under the brand name Gili. Gitanjali Jewels also started
selling 24-carat gold jewellery in association with a Thai company, Pranda. Su-Raj (India)
Ltd. launched its collection of diamond and 22 -carat gold jewellery in 1997.The Mumbaibased group, Beautiful, which marketed the Tiffany range of products in India, launched its
own range of studded 18-carat jewellery, Dagina. Cartiers entered India in 1997 in a franchise
agreement with Ravissant. Other players who entered the Indian branded gold jewellery
market during the 1990s and 2000 -01 included Intergold Gem Ltd., Oyzterbay,
Carbon and Tribhovandas Bhimji Zaveri (TBZ).
The Indian market was witnessing an accelerated shift from viewing jewellery as an
investment to regarding it as aesthetically appealing ornaments. The focus had shifted from
content to design.
The younger generation was looking at trendy, contemporary jewellery and clearly avoiding
heavy, traditional gold jewellery.
The consumer wanted a wider selection at a single convenient location and expected an
international shopping experience.
The Indian consumer was willing to experiment with new designs.
The late 1990s and early 2000s, with the increase in the number of designers from design
schools such as the National Institute of Fashion Technology (NIFT), a wide range of new
designs became available. In addition, the growing number of manufacturers needed a
retailing platform with global and national reach. All these led to the proliferation of branded
jewellery players.
Brand appeal
Branded jewellery has found a niche for itself in the tough Indian market, and its
increasing growth rates show that before long it will corner a significant share of the
jewellery market. With the retail industry in India burgeoning, several companies have made
inroads into the traditional jewellery industry, selling the product that was never really
"marketed" in "brand" new ways. So much so that branded jewellery is the new mantra in the
market, having rapidly acquired a niche over the past few years. Some of the companies have
even cleverly played on Indian customs and tradition to advertise and establish their brands.
Jewellery is now marketed for every occasion; even Valentine's Day calls for "a special
something [diamond] for a special someone". In spite of pessimism about the marketability of
branded jewellery in a country rooted in buying ornaments from the traditional goldsmith, 30
brands were launched in 2004.
BRANDED
Name & reputation gives a confidence to the
consumer
NON-BRANDED
Customer can tailor make jewellery according
to their preferences
INTRODUCTION
Gold has long been considered the most desirable of precious metals, and its value has
been used as the standard for many currencies in history. Gold has been used as a symbol
for purity, value, royalty. One of the salient features about the gold is that a single gram
of weight is not at all wasted since its exploration. It has been rounding in different hands
in one or the other way.
The history of gold starts from 2600BC. A huge description is available in the Egyptian
Hieroglyphs. It may be the first metal used by humans and was valued for ornamentation
and rituals. Important locations famous in the name of gold are Red sea in Saudi Arabia,
Lydia, Romania, Las medullas, in Spain, Rosia Montana in Transylvania, Central
America, Peru and Columbia. Today, gold has emerged as an important mean for
investments also. Volatile markets and unstable economic conditions have also added to
it. China is largest producer followed by South Africa. But India is the largest consumer
of gold, where it is largely used for jewellery together with investment. Indias diversified
religious customs and rituals have helped to the high demand for gold. During the 19th
century, gold rushes occurred whenever large gold deposits were discovered. The first
documented discovery of gold in the United States was at the Reed Gold Mine near
George Ville, North Carolina in 1803. The first major gold strike in the United States
occurred in a small north Georgia town called Dahlonega. Further gold rushes occurred
in California, Colorado, Otago, Australia, Witwatersrand, Black Hills, and Klondike.
Because of its historically high value, much of the gold mined throughout history is still
in circulation in one form or another.
APPLICATIONS
In various countries, gold is used as a standard for monetary exchange, in coinage and in
jewelry. Pure gold is too soft for ordinary use and is typically hardened by alloying with
copper or other base metals. The gold content of gold alloys is measured in carats (k),
pure gold being designated as 24k.
Jewellery:
Because of the softness of pure (24k) gold, it is usually alloyed with base metals for use
in jewelry, altering its hardness and ductility, melting point, color and other properties.
Alloys with lower cartage, typically 22k, 18k, 14k or 10k, contain higher percentages of
copper, or other base metals or silver or palladium in the alloy. Copper is the most
commonly used base metal, yielding a redder color. 18k gold containing 25% copper is
found in antique and Russian jewellery and has a distinct, though not dominant, copper
cast, creating rose gold. Fourteen carat gold-copper alloy is nearly identical in color to
certain bronze alloys, and both may be used to produce police and other badges. Blue
gold can be made by alloying with iron and Blue gold can be made by alloying with iron
and purple gold can be made by alloying with aluminum, although rarely done except in
specialize jewelry. Blue gold is more brittle and therefore more difficult to work with
when making jewelry. Fourteen and eighteen carat gold alloys with silver alone appear
greenish-yellow and are referred to as green gold. White gold alloys can be made with
palladium or nickel. White 18 carat gold containing 17.3% nickel, 5.5% zinc and 2.2%
copper is silver in appearance.
Other uses
Gold leaf, flakes or dust is used in some gourmet foodstuffs, sweets and drinks as
decorative ingredient.
Gold has been used for electrical wiring in some high energy applications, atomic
experiment and other electrical equipments.
Olympics, Nobel Prize and other competitions and honors award a gold medal to
the winner.
India is the largest consumer of gold in the world followed by China and Japan.
India is emerging as worlds largest trading centre of gold with a target of US$16 set
for 2010.
India dominates the worlds cut and polished diamonds (CPD) market. In value terms,
the country accounts for approximately 55% of global polished diamond market and
nearly 9% of the jewelry market.
Indias gem and Jewelry Exports Promotion Council (GJEPC) is aiming at turning
India into an international diamond trading centre.
Since India is already enjoying 80-85% of the world CPD market, scope for further
growth in diamond exports is limited. Hence, if Indias gems and jewelry sector is to
substantially increase exports, the best lies in the jeweler sub sector.
Indias imports an average of 18000 bars a day, about 70% of the total demand and the
balance is being sourced to indigenous output and metal recycled from old jewelries.
The main reason why India has not made a dent in jeweler exports market
is the existence of government restrictions in their domestic jewelry industry in the preeconomic liberalization era. If the gold jewelry exports are to be encouraged, it would
be necessary to allow bulk imports of gold which would have to be converted to
jewelry and then exported.
CONSUMER BEHAVIOR
All of us are consumers. We consume things of daily use; we also consume and buy these
products according to our needs, preferences and buying power. These can be consumable
goods, durable goods, specialty goods or industrial goods.
What we buy, how we buy, where and when we buy, in how much quantity we buy
depends on our perception, self concept, social and cultural background and our age and
family cycle, our attitudes, beliefs, values motivation, personality, social class and many
other factors that are both internal and external to us. Consumer behavior is the study of
how people buy, what they buy, when they buy and why they buy. It blends elements
from psychology, sociology, anthropology and economics. It attempts to understand the
buyer decision processes/buyer decision making process, both individually and in groups.
It studies characteristics of individual consumers such as demographics, psychographics,
and behavioral variables in an attempt to understand people's wants. It also tries to assess
influences on the consumer from groups such as family, friends, reference groups, and
society in general.
Attitudes
Information processing
The external influences or factors are:
Cultural influences
Sub-cultural influences
Family influences
Personal influences
Other influences
SURVEYS
This is the most common technique used in studying consumer behaviour. It involves the
use of questionnaires. Different scaling techniques are used to measure consumer
attitudes. The problem with survey methodology is that it gives to marketer only
conscious response of the customer.
PROJECTIVE TECHNIQUES
To throw the customer off his or her conscious level and to get know sub-conscious-level
responses, projective techniques like word association, picture association and thematic
appreciation tests have been used. This provides valuable information on his or her
product or brand and about the customers lifestyle and self concept.
FOCUS GROUP DICUSSIONS
This is another qualitative technique used to assess how customers perceive the product
and use situations. It also provides the marketer with valuable information on the target
market.
18. If brands, what are the factors responsible for this choice (one or more)?
a. I can choose from a wide variety of designs
b. The quality of the products is excellent
c. The stores are easily accessible as they have their outlets at many places.
d. They provide good exchange offers.
e. The jewellery is certified
19. Are you aware of the various jewellery brands available in the market?
Yes/ No
20. From where did you get the knowledge of this store/ brand?
a. Schemes launched by the store.
b. Recommendations from Friends / Relatives.
c. Pamphlets
21. How long have you been making your purchases of jewellery from this store/ brand?
a. I recently started visiting this store / brand.
b. From past 5 to 10 years
c. Since a very long time, almost always.
22. Before making any jewellery purchases, do you compare the designs and prices of the
same between the branded showrooms and the local dealers?
a. Always
b. Often
c. Sometimes
d. Rarely
e. Never
23. Do you plan to shift or change the source of purchasing jewellery from :
1 Local Retailers to Brands 2 Brand to Local Retailers
CONCLUSION
To conclude the overall responses of the customers for branded jewellery is good. The
overall performances in all areas are satisfactory.
During the study it was found that the following factors such as making charges,
salesman responsiveness, ornaments designs, price etc has satisfactorily influenced
consumer behaviour.
Further, there is some kind of promotion activities required to hold the present customers
and make new customers.