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CHAPTER-

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INTRODU
CTION

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CHAPTER - I
INTRODUCTION

Marketing management is the best business philosophy in the


modern era. Since 1960s most of the business firms are
progressing towards adopting marketing philosophy to have
business success. The marketing management is the progression of
different philosophies necessitated by technological development
where the goods are produced in mass and distributed in mass.

The earlier concept of production philosophy had its genesis in the


fact that the business firms will produce goods or products, which
are scare in market, and hence whatever they produce was
immediately consumed. The monopolistic pricing ruled the market.

Next was the sales oriented philosophy where in the producers use
to produce goods in mass and use aggressive selling techniques to
sell the products. Slowly business firms started understanding the
human face of business whereby people are buying something for
getting benefits or utility or they buy for to keep their hopes. This
is the product concept. However, these three concepts, i.e.
technology oriented production supported with sales to generate
revenue and human side of buyer behavior, all combined to evolve
as a new business philosophy called marketing.

Fundamentally marketing is a concept, which focuses all business


activity of the firm with central theme of customer focus. By
definition marketing is identifying the need of the customers,
developing and supplying the business offerings to suit that need
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and see that customers are satisfied. A satisfied customer will stay
with the company to buy from the company and also spread well
about the company through word of mouth to others which will
help the business firm to generate more sales, have growth and
develop. To achieve this the business firm has to see that
customers are satisfied.

Customers get satisfaction once their needs are properly serviced,


first the business firm should understand the need and see that
according to the according to the customers perception the quality
delivery should be made. Because of this a customer see that he
has derived value and thus he feels satisfied. To achieve this fast
we have to understand how customers needs are, what are they and
how to create value.

Need is defined as a state of felt deprivation i.e. it is existing in the


human environment. It is both physiological and psychological.
The physiological needs are called inmate needs, which exist, in
the physical form of human environment. Where as psychological
needs are called acquired needs, which is a mental phenomena.
The acquired needs are developed with varying degree of needs
considering the economic, cultural and social environment of the
customers.

For a particular physical need there will be innumerable acquired


needs and these needs are sometimes hierarchical in behavior.
Once a lower order need is satisfied a higher order need emerges.
However for that the economic, cultural and social environment
should permit. For e.g. when a person has a need for transport, he
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may buy a scooter or motorcycle (mostly as a bachelor). After he
gets the family and better income for the same transport need, he
may buy a car, which is purely a acquired need. This acquired need
is the one because of its versatility creates demand for various
products and services. Hence it becomes challenging every
business firm to understand the acquired need in a proper way so
that they can have business success.

Now it is time for us to define what is marketing management. By


definition, marketing management is nothing but all technical and
social activities of the business firms in identifying the customers
needs, developing products or services to that need and see that the
customers are satisfied by offering their product or services in such
a way that customers have received the quality, gets the sense of
value and ultimately gets satisfied.

To achieve the success through marketing management the


business firm should understand how to develop strategies. The
fundamental variables through which marketing strategy revolves
are generally called as four Ps, i.e. product, price, place and
promotion. Product means any tangible product or services needed
by the customers for which he/she is ready to pay. The price means
the value of exchange, which is permissible under the given
economic conditions. Place means making the product or service
available within the proximity to the customers. Promotion means
communicating the companys offering to the customer in such a
way they should understand and be willing to make the purchase.

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Most of the customer products are sold without the direct contact
between the producers and Customers. In such case the
organizations will adopt a strategy called STP strategy. That is
segmenting, targeting and positioning.

Segmenting means creating a homogenous group of customers


within the total market for the companys offering. Targeting
means evaluating the segmented customers in terms of their
physical needs, psychological needs, buying behavior and their
environment so that a proper strategy can be built.

Positioning means creating a unique image of the companys


product, which is identifiable with personality of the buyer. The
segmentation is done on the variables of demographic, psycho
graphic, behavioral and geographic. These are evaluated to create a
proper marketing strategy and positioning.

Most of the consumer goods are marketed through STP strategy


where promotion plays a very important role. Mainly because of
the strong communication need customer will buy what he
understand better under the given environment. Hence
understanding the customer needs from time to time is paramount
for every organization to survive in the market place. The
companies also use strategy called push and pull or hard or soft sell
strategies.

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GEMS & JEWELLERY
The Gems and jewelry sector in India plays a significant role in the
Indian economy, contributing around 6-7 per cent of the countrys
GDP. One of the fastest growing sectors, it is extremely export
oriented and labour intensive. The government of India has
declared the sector as a focus area for export promotion based on
its potential for growth and value addition. The government has
recently undertaken various measures to promote investments and
to upgrade technology and skills to promote brand India in the
international market.
The domestic gems and jewellery industry had a market size of Rs
251,000 crore (US$ 40.45 billion) in 2013, and has the potential to
grow to Rs 500,000530,000 crore (US$ 80.59-85.43 billion) by
2018, according to a study by a leading industry body. The study
also projected that the country's gems and jewellery market could
double in the next five years. The growth will be driven by a
healthy business environment and the government's investor
friendly policies. India is deemed to be the hub of the global
jewellery market because of its low costs and availability of high-
skilled labour.
India is the worlds largest cutting and polishing centre for
diamonds, with the cutting and polishing industry being well
supported by government policies. Moreover, India exports 95 per
cent of the worlds diamonds, as per statistics from the Gems and
Jewellery Export promotion Council (GJEPC). The industry is
projected to generate up to US$ 35 billion of revenue from exports
by 2015.

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India's gems and jewellery sector has been contributing in a big
way to the country's foreign exchange earnings (FEEs). The
Government of India has viewed the sector as a thrust area for
export promotion. In FY14, India's gems and jewellery sector
contributed US$ 34,746.90 million to the country's FEEs.
Market size
According to a report by Research and Markets, the Jewelry
Market in India is expected to grow at a CAGR of 15.95 per cent
over the period 2014-2019.
The gold jewelry exports from India were US$ 554.45 million in
December 2014, while silver jewellery exports were US$ 148.49
million, according to the latest data released by the Gems and
Jewelry Export Promotion Council (GJEPC).
The cumulative foreign direct investment (FDI) inflows in
diamond and gold ornaments in the period April 2000-December
2014 were US$ 476 million, according to Department of Industrial
Policy and Promotion (DIPP).
FY14 saw an increase of 12.65 per cent in export of cut and
polished diamonds with the segment reaching US$ 19,635 million.
The industry also witnessed a rise of 11.98 per cent in imports of
rough diamonds with figures of US$ 16,716 million. India
imported 163.11 million carats of rough diamonds worth US$
16.34 billion and exported 36.46 million carats of polished
diamonds valued at US$ 20.23 billion in 2013. The country
exported gems and jewellery worth US$ 36.04 billion in 2013.
Also, platinum jewellery could breach the Rs 2,500 crore (US$
402.95 million) mark in FY15, according to research by IKON
Marketing Consultants.

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USE OF JEWELLERY IN INDIA

Rapid economic growth in recent years (GDP growth more than


6%) has made India one of the fastest growing economies. India
remains the largest consumer of gold in the world consuming 20
percent of the world demand, most of it in the form of jewellery.
Compare this with other commodities; it is 3% of the global oil
demand and 2% of copper demand. Compare this with china,
which accounts for 8% of the global oil demand and 22% copper
demand.

With the higher incomes placing purchasing power in the hands of


a 1.252 Million population demand for all kinds of goods and
services is set to expand robustly, gold being one of them.

If one go back to the discovery of gold in ancient times, its beauty


and the ease with which it could be worked inspired craftsmen to
create it into ornaments, not just for adornment, but as symbols of
wealth and power. The modern Indian consumer is on the lookout
for gold jewellery that reflects her attitude- a mix of both
traditional and modern designs. She loves to experiment with a
fusion of different designs and greatly appreciates jewellery that is
creative, unusual and reflects her changing lifestyle. However, it is
interesting to note that gold has more facets to the Indian woman.

Gold is auspicious. I India, gold has always been considered a


sacred item in Hindu way of life and is a must in all-religious

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functions, the rationale being that gold is pure having passed
through fire in its process of evolution.

In India it has been part of the fabric of our culture and an


inseparable part of our belief system. Gold has always been an
integral part of Indian society, even outside religion and
mythology. It has formed the basis of stridhan, the womans
endowment in marriage which acts as a buffer against a rainy day.
Gold is therefore an essential part of the society fabric. There are
established patterns for gold acquisition, especially during Diwali,
Durga Puja in the east, and Onam in kerala and the Pongal in
South. In urban areas the new branded jewellery has made in roads
into middle class buying patterns. These have largely targeted to
the urban young, double income households, where gifting is also
encouraged. Two names, which come to mind, are Tanishq and
Oyzterbay. The main drivers for gold consumption still remain
festivals and occasions like marriages. The bulk of the Indian
Jewellery buying is still routed in tradition, which has been
modified by changes in design over the years.

Part of what makes gold auspicious to Indian society is the solid


practical philosophy. Stridhan was the only insurance available to
woman who traditionally lacked education, and no earning power,
since they had no work skills. Gold given at time of marriage acted
as a hedge against inflation and also a collateral for loans in a
fluctuating environment.

Indian association with gold goes back to the start of the Indian
civilization. Various Indian rulers have issued coins through the
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ages. But the British were famous for their standardization of the
gold guinea. Prior to independence, guineas were a valued
possession. The mint set up in Mumbai provided the guineas for
Indians.

In Indian custom to receive gold is to welcome the goddess


Lakhmi, which is why Diwali and gold is inextricably linked
together. This is most evident during the festival where gifts are
given and taken. Inspite of the staggering Diversity of custom,
tradition and religion the reassuring presence of gold remains a
constant factor.

Gold is relevant. The wide range of traditional and modern designs


available in the market today keep the Indian womans interest in
gold alive. While traditional designs inspired from nature of
festivals or other such inspirations keep us connected with our rich
cultural heritage, modern designs are also gaining in popularity,
particularly in the urban areas. With the availability of branded
gold jewellery in India such as World Gold Council-promoted
collection of gold, Customers now have the option of buying
trendy, youthful, light new gold designs in the domestic market
affordable prices.

Investment bankers say that an ideal investment portfolio generally


consists of assets that provide optimal returns and minimize risks.
They say that stocks, bonds and other investments that sound very
complicated and are difficult for small investors to analyze, do
offer better returns sometimes. But, they also acknowledge that an
investor needs an asset that will lessen the impact of economic and
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political uncertainties on an investment portfolio. They recommend
gold as the asset of choice.

Gold plays another important role for the small investor it is a


reliable store of value since it performs the functions of money.
This is because it is indestructible, relatively scarce, cannot be
manufactured, is easily recognizable, is accepted as a mode of
payment and is a form of currency that finds global acceptance. Its
also an asset of last resort.

Gold endures through hard times of plenty. It is not directly


affected by the economic policies of any individual country and it
cannot be repudiated or frozen as in case of paper assets.
Government believes this, and holds gold as part of their
international monetary reserves. And so does the retail investor.
How many times has one heard of families mortgaging or selling
the family gold to preserve the homestead.

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BRANDED JEWELLERY INDUSTRIES IN INDIA

BRANDED JEWELLERY
The branded jewellery market is poised for a period of rapid
expansion, with individual players recording an 80 to 100 per cent
growth rate. The market has been growing at the rate of 20 to 30
per cent for the past two years.

The branded jewellery market in India is still in its infancy and has
the potential to expand phenomenally, with more players entering
the market, this, after initial teething problems of overcoming the
Indian consumer's preferences for buying traditional jewellery
from the family jeweller.

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Moreover, jewellery in India has always been used for investment
rather than adornment. Hence, the slow pace of change in the
perception of jewellery as an asset to a more wearable, fashion
accessory.

The contemporary designs also did not go down too well with the
Indian palate. According to Mr. Vasant Nangia, who recently
resigned as Chief Operating Officer from Titan's jewellery
division, ``When we launched the Tanishq range, our designs were
not appreciated initially as they were believed to be extremely
Western. Also, we offered only 18 carat gold.''

But now the consumer is finally looking beyond traditional 22-


carat jewellery. There is a need to increase awareness among
Customers about branded jewellery and what it stands for. It will
take another couple of years for the branded jewellery market to
really come on its own.

The branded jewellery market which currently stands at an


estimated Rs. 500 crores in a Rs. 40,000 jewellery market is
expected to double over the next five years To capture a share of
the large aspirational middle class market, the players -- from
Tanishq to Gili, Intergold and Carbon -- have targeted varied
segments, resorting to niche marketing. While local market
continues to grow, players like Tanishq and Gili have made a foray
into the international market.

GOLD AS AN INVESTMENT

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It has been sought and prized since prehistoric times. Gold is
thought to be one of the earliest known metals. It has been coveted
throughout history, for its beauty, scarcity, malleability and its
resistance to rust and collusion. Due to its qualities and
combination of properties, its colors, it imperviousness to decay
imbued it with magical qualities in ancient times.

Today it is used as a hedge for uncertain times. There are many


factors, which affect gold prices. The pattern of consumption, the
US dollar, the burgeoning oil prices etc. major factors like a weak
US dollar, growth in demand for jewellery impact gold prices.
There is move to bring in exchange in traded paper backed
products.

In spite of the other avenues of investments like platinum and


diamond, the demand for gold jewellery has seen a regular growth
year on year. India, China, Turkey among other countries is
responsible for growth. Gold can be purchased like any listed stock
at select stock exchanges of the World like London stock
exchange, Australian stock exchange and New York stock
exchange.

In the last three years gold prices have steadily climbed. Due to
this many investors have begun to recognize the effectiveness of
gold as a savings instrument. There are different schools of thought
on investing in gold. The recommendations range from 15% to
20% of a portfolio.

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But ideally it should be done based on comprehensive financial
planning. As you allocate your assets on stock, bonds, FDs and
other avenues gold should be kept in mind due to the solidity it
gives to your portfolio during unstable times. One primary factor
unlike stock markets, gold prices are not linked with performance
of economy, industry or companies or any such factor. In the
present scenario of a low interest regime gold can be seen as a
viable investment in the long term. Indias faith in gold date long
back to the Vedic times. Indian merchants always demanded
payment in precious metals.

Historically it has been popular in India as it acted as a hedge


against inflation. As well know experts have pointed out the great
strength of gold throughout history has not been that you make
money by holding it, but you do not lose. This remaining the single
biggest incentive.

RETAILING OF JEWELLERY IN INDIA


Retail is India's largest industry, accounting for over 10 per cent of
the country's GDP and around eight per cent of the employment.
Retail industry in India is at the crossroads. It has emerged as one
of the most dynamic and fast paced industries with several players
entering the market. But because of the heavy initial investments
required, break even is difficult to achieve and many of these
players have not tasted success so far. However, the future is
promising; the market is growing, government policies are
becoming more favorable and emerging technologies are
facilitating operations.

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Retailing in India is gradually inching its way toward becoming the
next boom industry. The whole concept of shopping has altered in
terms of format a consumer buying behavior, ushering in a
revolution in shopping in India. Modern retail has entered India as
seen in sprawling shopping centers, multi-storeyed malls and huge
complexes offer shopping, entertainment and food all under one
roof. The Indian retailing sector is at an inflexion point where the
growth of organized retailing and growth in the consumption by
the Indian population is going to take a higher growth trajectory.
The Indian population is witnessing a significant change in its
demographics. A large young working population with median age
of 24 years, nuclear families in urban areas, along with increasing
workingwomen population and emerging opportunities in the
services sector are going to be the key growth drivers of the
organized retail sector in India.

India is the largest jewellery market in the world and is, estimated
at RS.435billion of which gold contributes with a high share of 98
per cent. Only a bare 5 per cent of the total gold production is
exported. It is a part of the Indian rural economy and a significant
part of the rural credit, using it as a collateral. It is fairly estimated
that Indian citizens hold more than 13,000 tones of gold, which
would have a value of roughly Rs. 8 trillion or about 20 per cent of
GDP. The country consumes around 800 tones of gold, per annum.

Branded Jewellery has made its presence felt in India in a big way,
chanting the mantra of purity. As many as 30 plus names constitute
the branded jewellery market right now, with Nakshatra, Asmi,
Sangini, Arisia, Tanishq, Gili, Orra, D'damas, Adora, Kiah,
Oyzterbay, Carbon, Agni, Cygnus, Ishi's, Bulaire, Signity,

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Nirvana, Srishti, Celeste, Trendsmith, Sparkles, Sveni, Imagem,
Sogni d'Oro, Karma, Swarovski, Ciemme, Vanshi... plus new ones
being introduced in the market every few months, considering its
popularity. While both branded and unbranded segments of the
jewellery market have been growing, the pace of branded jewellery
has been much higher over the last few years.

In the late 1990s, the Indian jewellery market witnessed a shift in


consumer perceptions of jewellery. Instead of being regarded as
only an investment option, jewellery was being prized for its
aesthetic appeal. In other words, the focus seemed to have shifted
from content to design. Trendy, affordable and lightweight
jewellery soon gained familiarity. Branded jewellery also gained
acceptance forcing traditional jewelers to go in for branding.

Given the opportunities the branded jewellery market offered; the


number of gold retailers in the country increased sharply. Branded
players such as Tanishq, Oyzterbay, Gili and Carbon opened
outlets in various parts of the country. Traditional jewelers also
began to bring out lightweight jewellery, and some of them even
launched their in-house brands.

However, the share of branded jewellery in the total jewellery


market was still small (about Rs. 10 billion of the Rs. 400 billion
per annum jewellery market in 2002), though growing at a pace of
20 to 30 percent annually. The branded jewellery segment
occupied only a small share of the total jewellery market because
of the mindset of the average Indian buyer who still regarded
jewellery as an investment. Moreover, Customers trusted only their
family jewelers when buying jewellery. Consequently, the branded

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jewellery players tried to change the mindset of the people and
woo customers with attractive designs at affordable prices.

GOLD JEWELLERY MARKET IN INDIA


Dhanteras, the first day of Diwali, is a day for celebrating wealth.
Devotees light the first lamps of the festival of lights to welcome
Lakshmi, the goddess of prosperity, into their houses to bless them
with fortune for the year ahead.

Usually falling between mid-October and mid-November, Diwali


is one of the most important dates in the Indian calendar, and as
they celebrate, Indians buy gold. Today, India is one of the largest
markets for gold jewellery, which has a complex and central role in
the countrys cultures.

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Regional preferences of Indian Customers in gold jewellery

TABLE I
KARAT CALCULATION
24 Carat 100 percent pure gold

22 Carat 91.66 percent pure gold

20 Carat 83.33 percent pure gold

18 Carat 75 percent pure gold

2 Carat 8.33 percent pure gold

1 Carat 4.166 percent pure gold

In India, gold jewellery is a store of value, a symbol of wealth and


status and a fundamental part of many rituals. In the last decade, 75
per cent of gold demand in India has taken the form of jewellery.
More than two-thirds of that demand comes from the countrys
rural population, where a deep affinity for gold goes hand in hand
with practical considerations of the portability and security of
jewellery as an investment. This, in part, explains how Indias
appetite for gold defies market conditions: despite a 400 per cent

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rise in the rupee gold price over the last decade, gold demand from
Indian Customers continues to grow.

Gold is considered to be auspicious, particularly in Hindu and Jain


cultures. The ancient law-giver Manu decreed that gold ornaments
should be worn for important ceremonies and occasions. Across
the country, regional festivals are celebrated with gold: in the
south, Akshaya Tritiya, Pongal, Onam and Ugadi; in the east,
Durga Puja; in the west, Gudi Pavda; in the north, Baisakhi and
Karva Chauth.

Gold is central to more personal life events too. Gifting gold is a


deeply ingrained part of marriage rituals in Indian society
weddings generate approximately 50 per cent of annual gold
demand. Families begin saving soon after the birth of a girl, and
the Stridhan, or gift of gold to the bride, gives her financial
security once she is married.

Over the next decade, there are likely to be 15 million weddings


per year in India, where more than half of the population is under
25.

Indias demographics are driving constant growth in demand, with


over 140 million people coming out of poverty in the last 10 years
in India, but the evolving structure of society is changing tastes
too. Since the early 1990s, urban Indian women have been
adopting contemporary designs for everyday use and wear.
Younger, more affluent Indian Customers want pieces that are
modern, yet reflect their heritage and culture; jewellery that
expresses their new identity.

Leading Brands of Gold / Diamond Jewellery in India


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TANISHQ
Tanishq was born in 1995 after the Tata Group decided to spread
its wings and embrace the branded jewellery segment. It was set up
as a division of Titan, the group company that had transformed the
Indian watch-making industry. Internationally, watches and
jewellery have a sturdy synergy and are often retailed out of the
same store, with design being a key driver in both categories. It
made sense for a watch company with a strong retail presence to
look at its next wave of growth from the jewellery segment, which
had a huge potential.

Tanishq had a high-profile launch, but its initial production was


restricted to the 'studded' jewellery segment. Its strategy changed
soon after to accommodate the Indian preference for buying gold
jewellery. Tanishq then tacked to a mix of studded and gold
jewellery and went in for a fusion-design approach. Its initial
methodology of using western designs changed as it sought a wider
market. This revised strategy was initiated in the year 2000, when
a new management team took over and turned around Tanishq's
fortunes.

Tanishq was a trailblazing endeavor to create a national retail chain


that would provide Customers with jewellery of reliable worth and
high design value. Its entry changed, in more ways than one, the
way the Indian jewellery market operates. With 66 exclusive
outlets spread across some 50 cities and a fully integrated jewellery
manufacturing facility at Hosur, in Tamil Nadu, Tanishq has
emerged as one of India's biggest retailers.

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Tanishq has established itself as an ethical player in a market
where unscrupulous retailers have often betrayed consumer trust.
The introduction of 'Karat meters' - instruments that can be easily
used by Customers to measure the purity of gold in a non-
destructive manner - at its outlets is a key innovation that has
developed tremendous equity for the brand. Another Tanishq
novelty, one on which the brand's growth strategy is premised, is in
the matter of differentiated designs, be they contemporary or
traditional, Indian or international.

Modern retail values and principles in the selling of branded


jewellery in India are almost completely the handiwork of Tanishq.
The brand has broken fresh ground in retailing by creating
exclusive outlets with hitherto unknown in-store ambience and
hospitality touchstones. It has launched new collections at a
quicker rate than its competitors, and conducted marketing
promotions and fashion shows to enhance the shopping experience
of Customers.

Although the purchase of branded jewellery is still a new


experience for a whole lot of Indians, the Tanishq brand enjoys
increasing levels of consumer loyalty. Over the past three years, it
has been one of the best performers in the branded jewellery
sector. In 2013, about one million people shopped at Tanishq
stores all over the country. A highlight of the brand's success is
that, while the jewellery market growth has declined during the
past two years, Tanishq has recorded an annual growth of
approximately 40%.
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The Tanishq Design Studio is at the heart of the brand's success.
The state-of-the-art infrastructure and technical know-how at this
facility comes from the UK, Germany and Switzerland, and it has
helped a team of award-winning designers develop new collections
at regular intervals. Riding on its prowess in this sphere, Tanishq
won the Most Desirable Jewellery Brand in India honour in 2003
at the Images Fashion Awards. Among the highlights of the 2003
Miss India beauty pageant were the distinctive crowns that adorned
the three winners. Chiseled by artists from the Tanishq Design
Studio, the crowns salute the spirit of Indian women. Besides
catering to Indian Customers, Tanishq has successfully entered key
export markets such as the US, the UK, the Middle East, Singapore
and Australia. This is testimony to the brand's ability to craft
products that meet the requirements of varied cultures and
sensibilities. The brand Tanishq, like the Tata name, has
established itself as an ethical brand, earning the respect and
affection of its Customers.
They have 150 stores in 2013 as compare to 84 in 2005.

GILI
Diamonds may be a girls best friend, but in India of the pre
liberalized, 1990s, they were perceived to be precious stones of
esoteric value and connotation. While their beauty and desirability
was never in doubt, there were many entry barriers that restricted
them to the rarefied atmosphere of the elite. India, then, was a
controlled economy and diamond were high value items with no
standard and commonly understood or accepted valuation criteria.
They did not offer a sense of security the way gold did in terms of
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resale value; what they did generate, however, was sure and
unadulterated joy of ownership a hedonistic tinge that appealed
to the conservative middle class, brought up on a strict diet of
social mores and moral values. Quite simply, it was commonly
perceived that diamond jewellery was unaffordable.

The optimistic post-liberalization scenario of the 1990s presented


Indians with the fortune of rising and higher disposable incomes,
increased numbers of workingwomen and consumerism. Research
showed that the market was not yet ready for branded diamond
jewellery. There were several reasons for this. Perceived at Rs.
10,000 and more, the first impediment was the cost. The second
was that the jeweller was not a place frequented by the middle
class and third was the fact that people were not willing to put
their faith in a name or a brand over that of the family jeweller.
All these factors stymied the growth of the branded and organized
sectors.

As happens in path-breaking products, gut feel plays a significant


role. Gitanjali went by it and persisted with the dream of taking
branded diamond jewellery to the masses. Gitanjali was
convinced that research did not actually reveal the true feelings of
the neo-economically-liberated populace in India. Instead, it
reflected opinions emanating from years of social conditioning of
the middle class.

Gitanjali Jewels was ready to go public with the very first of its
Gili collections, but its troubles were still far from over. When
Gitanjali approached jewellery stores for product placement, the
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company discovered that although almost every outlet evinced
interest in its designs not a single jeweller was willing to stock and
sell it under the Gili brand. Fortunately, providence in the form of
coincidence came to help. Around that time, Shoppers Stop was in
the process of setting up its first retail megastore incorporating the
shop-in-shop concept. That became the starting point for Gilis
success story.

Gilis biggest achievement is to have gone the full distance, from


breaking ground in a market unwilling to accept the basic concept
of branded diamond jewellery, to becoming a part of ones
everyday life and a market leader in its category.
Gili has taken diamond jewellery out of the family jeweller mould
and made it available off-the-shelf, as a product for impulse
purchase, without sacrificing values associated with the process of
purchase.

Along the way Gili has notched up many firsts. It introduced the
concept of affordable diamond studded jewellery in India. It
brought jewellery to superstores, department stores and other such
retail outlets. It dared to offer a certificate authenticating the
quality of the gold and the diamonds used in it. It actually created
the maximum retail price policy, unheard of in this business.

Gili brought uniformity by offering identical quality, identical


designs and identical pricing across the country. It introduced the
mail order catalogue concept and, in a technological breakthrough
it crafted the smallest, heart-shaped diamond in the world. At 0.03
carats it was a unique accomplishment.
26
NAKSHATRA
With the slowdown in international markets, India emerged as
one with immense growth potential. The DTC, which aims to
grow the consumer demand for diamond gems and diamond
jewellery in sixteen countries through advertising, publicity and
trade programmes, began operations in India in 1996. By 2000,
DTC had helped bring about an expansion in the overall diamond
jewellery market in the overall diamond jewellery market in the
country.

Nakshatra was launched with celestial, evocative imagery


highlighting the significance of its design cluster. Aishwarya Rai, a
contemporary fashion icon in India, was signed up as the brand
ambassador for the launch of the brand, imbuing the range with
premium imagery and style. Nakshatra today is the modern face of
Indian tradition with overtones of mysticism and symbolism.

Within the first year of its launch, Nakshatra acquired a significant


market share. In the two years since then, it has become the leading
branded jewellery collection in the country. It has achieved 93%
awareness levels amongst its target audience (Source: Global
Tracking Study conducted by Research International, January
2003). 70% of retail outlets stocking Nakshatra credit the brand
with playing a key role in boosting overall diamond jewellery
sales, increasing the average price of all diamond jewellery sold
and increasing consumer footfalls in the stores. This success has
not gone unrecognized.

27
In its first year, Nakshatra was awarded the Effie (Silver) in 2001
and in the following year the Effie (Bronze). (The Effies are the
most significant awards in advertising that recognize effectiveness
and honour tangible results). In 2003, the Nakshatra Utsav was
awarded the Best Trade Promotions award at the McDowell's
Signature All-India Promo Awards.

The brand has been consistently making news through relevant


image building activities that have enhanced its image and
increased its aspirational values. A recent study revealed that by
driving desire for all kinds of diamond jewellery, Nakshatra has
arrogated a unique position in the category. It has appropriated the
physical values of quality, brilliance, radiance and clarity of the
diamond category thus creating a special niche for itself as a brand.
Nakshatra is seen as celestial, ethereal and mysterious. It is a brand
that provides a special experience to the consumer.

28
CARBON
In early 1991, the Bangalore based Peakok Jewellery Pvt. Ltd.,
(Peakok) was incorporated and Mahesh Rao (Rao) was appointed
director. Peakok realized that the Indian consumer's relationship
with gold jewellery would grow beyond an investment need
towards a lifestyle and personality statement. In 1996, within the
Peakok fold a new brand of 18-carat gold-based jewellery called
Carbon was launched. In 2000-01, with sales of Rs. 0.14 billion,
carbon had a 0.03 percent share of the jewellery market and a 1.4
percent share of the branded jewellery market. The company
expected Carbon sales to touch Rs. 1.5 billion by 2005-06 and
exports to start by 2008. The brand was available at 40 outlets in
16 cities in 2002 and would be made available in 23 cities by 2012.

OYZTERBAY
Vasant Nangia and his team founded Oyzterbay in July 2000. It
began operations in March 2001. By November 2002, the company
had 41 outlets across the country. Oyzterbay seeks to build a
national brand in the jewellery industry in India and aspires to be
the largest branded jewellery company in the country with a chain
of 100 stores and several hundred-distribution points by 2004.
With sales of Rs. 0.17 billion in 2000-01, Oyzterbay had a 0.04
percent share of the Rs.400 billion jewellery market and a 1.7
percent share of the branded jewellery market.

TRENDSMITH

Mumbai-based Tribhovandas Bhimji Zaveri (TBZ), which had


been in the jewellery business since 1864, saw tremendous scope

29
in the branded segment and opened its new concept store
'Trendsmith' in Mumbai in December 2001. Encouraged by the
response towards its first store, the Zaveris planned to take
Trendsmith (India) Pvt. Ltd. all over the nation by opening as
many as 50 stores by 2006. Trendsmith offered eight lines of
exclusive designer jewellery from well-known export jewellery
manufacturers and designers from Mumbai and Delhi. They have
27 stores in 2013 as compare to 2 in 2005 and planning to open
43 new stores in all India under Pan India expansion plan
between 2013 to 2015.

BRANDED JEWELLERY AS FASHION ACCESSORY


In India, gold has traditionally been purchased either as hedge
investment or in the form of highly ornamental heirloom jewelry.
The liberal economic dispensation ushered in at the beginning of
the 1990s and the emergence of an affluent professional class in
the urban space with the boom of the IT industry resulted in the
creation of a burgeoning designer wear/cosmetics/fashion
accessories market in India.

This has encouraged some domestic jewelry manufacturers to


carve out a niche for this precious metal in the fashion accessories
market in India. The abolition of the Gold Control Order and the
subsequent easing of restrictions on the metal's import, including
substantial pruning of import duties, and has eased the
establishment of this new market.

30
One of the better organized and more successful ventures is
Peakok Jewelry Private Limited, incorporated in Bangalore in
early 1991 and spearheaded by Mr. Mahesh Rao, a young
entrepreneur with extensive experience in fashion accessories
market. Mr. Mahesh foresaw in the mid-1990s that the Indian
Customers' relationship with gold jewelry would grow beyond an
investment need towards that of a lifestyle and personality
statement. Seizing the opportunity, he initiated within the Peakok
fold a new brand of 18 carat gold based jewelry called Carbon.

``Globally, 90 per cent of jewelry sold is as dress wear - a part of


the wardrobe and not the vault, says Mr. Mahesh Rao. ``In India
branded jewelry as a fashion accessory is still a small portion, less
than one per cent, of the total Rs. 40,000 crores per annum jewelry
market in India, but it is growing at a tremendous pace of 20 to 30
per cent annually."

The creation, manufacture and marketing of the Carbon brand


jewelry is different from the making and selling of traditional
jewelry. First of all, a Carbon jewelry piece is not a one-off item
painstakingly crafted by a single person. Peakok has a roster of six
designers, headed by Ms. Rajeswari Iyer, an alumnus of a German
design school who has worked in the U.K., Germany and India.
This design team turns out around 180 to 200 styles in a year, with
75 designs per style.

``At any point of time, there are around 600 designs of Carbon
brand pieces on sale and we sell an average of 300 to 400 pieces

31
per design,''says Mr. Mahesh. ``An exception was the Sunsign
design released last year which sold around 10,000 pieces."

While 18 carat gold is commonly used in Carbon products, some


of the designs also use white gold, titanium, steel and gold.
Diamond is the preferred precious stone but other colored stones
are also used. A technical specialty of the brand, developed in-
house, is the setting of a diamond onto the ring by a single clasp
giving an impression that the diamond is hanging free without a
base.

Unlike traditional jewelry, which is crafted single-handed, Carbon


brand jewelry is manufactured in a modern 15,000 sq. ft. factory in
Bangalore manned by 85 employees. There are different
departments, each devoted to one aspect of the manufacturing
process, such as design, metal master making, rubber die making,
wax tree making (the Lost Wax method is used here for casting the
intricate gold base), vacuum injection casting, deburring, setting
the jewels into the metal, polishing (dental drills with ceramic
heads are used here instead of the traditional and slow hand
polishing), electroplating and sand blasting.

``We are attempting here to eliminate the low productivity, quality


inconsistencies and high precious metal loss associated with
traditional jewelry making, claims Mr. Mahesh Rao. ``We have
instituted modern manufacturing practices such as self- contained
small groups in the assembly area, self-inspection by the operators,
the Japanese kaizen approach to improvements in operational
practices and the like. We have brought down our manufacturing
32
loss of gold to 6.8 per cent. The average in the traditional Indian
jewelry shop is as high as 22 per cent, while the world average is
only 2 per cent."
Comprising items of everyday use, (rings, chains, bracelets, ear
studs, tie-pins and cuff links) Carbon items are an impulsive
purchase by customers. The brand has no cycles of off take in the
year like the marriage season, which traditional jewelry has.

The profile of the average customer likely to purchase a Carbon


item is a well-paid urban professional, 24 to 38 years old having a
credit card. Based on the above, it was decided that Carbon should
not be placed in the usual jewelry shops but made available at
``shop-in-shop outlets in large lifestyle stores such as Shoppers
Stop, Ebony, Globus, The Bombay Store and Lifestyle, Taj
Khazana and some premium boutiques such as the Helvetica in
Chennai.
The Carbon range is now available in 40 outlets across 16 cities
and we will be in 23 cities by 2005,''says Mr. Mahesh Rao. ``We
are also planning to have our own outlets, the first of which will be
opened before the end of this year. We are trying to expand our
market by going in for occasions such as festivals, gifting on
special days such as birthdays and anniversaries. In addition, we
are looking at cross-promoting Carbon jewelry with other branded
lifestyle products such as perfumes, clothing and cosmetics."

While the price range of Carbon products is modest (Rs. 2,750 to


Rs. 20,000 per piece), unlike traditional jewelry for which a
bargain price is struck, there is a nationally uniform MRP for
Carbon items. Four years after the brand was introduced, the
33
annual sales of the Carbon range have reached Rs. 10 crores, with
an average piece value of Rs. 5,000. Mr. Rao expects the brand
sales to touch Rs. 150 crores by 2005-06. Exports may start in
another two years.

34
References:

BOOKS:
1. Kotler Philip ,Armstrong Gary (2006); Principles of
Marketing, Dorling Kindersley pvt. Ltd.p-15
2. Beri C.G(2000); Marketing Research Tata MC Graw-Hill
Publishing company Ltd.p-5
3. Singh U.K,.Narayan B (2006); Marketing Management,
Anmol publication pvt. Lmt.p-14
4. Sareen Sandeep (2001); Marketing and Sales
Management, LASER Typesetting at mayank printers and
printed at roshan press.p-17
5. Kotler Philip (2008); Marketing Management Prentice hall
of India New Delhi.p-9.
6. Thakur Devender(1994);Advertising Marketing & Sale
ManagementDeep & Deep publication pvt.Ltd. p-15
7. Gupta Dr.C.B ,Nari Dr.N.Rajan (2005):marketing
managementSultan Chand &Soons New Delhi.p-1.86
8. Bellur V.V(1987);Marketing Research Theory publishing
house Bombay.p-220

WEBSITES

1. www.oxfarddictionaries.com
2. www.merriam-webster.com
3. www.macmillandictionery.com
4. www.shabdkosh.com
5. kalyanjewellers.net
6. www .shopclues.com
7. www.websitesfarfewelers.com

35
8. www.webcrawler.com
9. Jewelrymaking journal.com
10. https://pcjeweller.wordpress.com/tag/pcj
11. www.Salesandmarketing.com
12. www.businessdictonary.com

CHAPTER-
II
36
RESEARC
H DESIGN

37
CHAPTER 2
RESEARCH DESIGN
RESEARCH DESIGN

Statically tools have been used to present the data and to analysis
the data.

STATEMENT OF THE PROBLEM


The total potential of the jewellery market in India is around Rs
40,000 crores and the share of branded jewellery is just Rs.800
crores in it, as majority of the Customers of gold jewelry are in
rural markets, a feasibility study on the viability of branded
jewellery in rural market has to be done and hence How to
capture the rural markets for Branded Jewellery? and therefore a
feasibility study for Branded Jewellery in rural markets.

NEEDS OF THE STUDY


Try of find out the popularity of different brands of jewellary in the
market and to understand the consumers changing buying
behavior which may help the company to promoting its sales
through new and effective strategies.

SCOPE OF THE RESEARCH


The study covers the behavioral perspective of Customers towards
branded Jewellery. The scope is to study the general perception of
rural Customers towards branded jewellery and the feasibility of
branded jewellery business in rural markets.

The study aims at exploring the possibility for branded jewellery to


enter in Indian rural markets. The sheer size of rural population

38
and their sheer quantity of gold jewellery purchases tells us about
the untapped potential for branded jewellery to enter. This study
explores the possibility of branded jewellery entering rural
markets.

39
OBJECTIVES
To find out the buying behavior of rural Customers
towards jewellery.
To find out the consumer expectations during their
purchase of jewellery.
To find out the preference level of rural Customers
towards designer jewellery.
To study the perception of people towards Branded
jewellery.
To find out the satisfaction level of rural Customers with
their existing family jeweller.
To find out the willingness of rural Customers to pay extra
2% tax on branded jewellery.

RESEARCH METHODOLOGY
Research Methodology it seems appropriate at this juncture to
explain the difference between research method and research
methodology.

Research methodology properly conducted marketing research is


an indispensable tool for top management in making decision.

a). Methods for Data Collection

Primary Data was collected from the rural Customers with the
help of a Questionnaire Schedule with the help of an
unstructured interview.
Secondary data was collected from Company websites, journals,
magazines, and newspapers to find out the working procedures.

40
b). Sampling Design

Size of Sample
Questionnaire Schedule-50

Sampling Unit
The research was conducted at Dharamshala situated in
Kangra District at Himachal Pradesh.

c). Tools and Techniques Applied for Analysis and


Interpretation of Data
Percentage
Pie chart

RESEARCH INSTRUMENT
Questionnaire schedule it consists of both open ended and
close-ended questions. The jewellery shop owners in the area of
research were consulted and the data, which is analyzed, was
obtained through filled questionnaires.

PLAN OF ANALYSIS
The information collected from the questionnaire schedule are
analyzed in the following way;-

The data collected from the questionnaire schedule and


questionnaire are put together in the form of tables and analyzed.
Data are shown in the form of bar charts wherever required for
better understanding.
Inferences are drawn based on the objectives of the study.
The summaries of the findings are presented.

41
LIMITATIONS OF THE STUDY

Sometimes the respondents were uninterested in replying honestly


The information collected is not cent percent authentic it can be
subject to bias.
The retail shop owners were not ready to share information.

42
References:
1. Kapoor, Saigal MS (2013): Research Methodology, Methods &

Techniques Regal publication rajouri garden new delhi.p-11

2.Kothari C.R (2008): Research Methodology, Methods &

Techniques new age internation publishers. p-12

3.Batra G.S, Dangwal C.R (2000): Marketing Management

Deep & Deep Publication Pvt. Ltd. New Delhi.p-156.

43
CHAPTER-
III

44
DATA
ANALYSIS
AND
INTERPRE
TATION

45
46