PROFORMA FOR APPROVAL OF PROJECT SYNOPSIS 2010-2011 SEMESTER IV (SYMMS, VIVA IMS) Name Roll No.

Title of the project : Kalpita Dilip Choudhary : 09 : CONSUMER PREFERENCE FOR BRANDED
JEWELLERY VIS--VIS NON-BRANDED JWELLERY AND THE PROMOTIONAL STRATEGIES ADOPTED BY EACH IN MUMBAI

Subject Area Name of the Guide Signature of the student Signature of the Guide

: Marketing : : :

For Office Use Only Synopsis Approved Not Approved Guide Approved Not approved

Comments/suggestions for reformation of the project: Signature: Date:

INTRODUCTION India has a historic relationship with Jewellery. Many kings, emperors and dynasties featuring countless wars, conquests and political upheavals have ruled the Indian sub-continent. Different dynasties ruled different parts of India with different monetary systems. Jewellery acted as a common medium of exchange or store of value across the monetary systems of different kingdoms across the sub-continent especially gold. Hence wealth could still be preserved in spite of wars and political turbulence. Gold also helped preserve wealth through natural calamities and disasters and for centuries was the only means of saving in rural India, land being the other main asset of economic value. This has largely helped formulate, or evolve, the Indian sentiment and fanatical passion for gold, which holds true even today. India is estimated to hold more than 11,000 tonnes of gold. Apart from its historical religious significance, Jewellery is valued as an important savings and investment vehicle in India. Even in present times, Jewellery remains the Indian brides `Streedhan, the wealth she takes with her when she marries and which remains hers. Gold jewellery is the preferred jewellery worn by women in India irrespective of their religious beliefs. In marriages, gold jewellery is the gift preferred by the near relatives of the bride and the groom. Gold jewellery is very popular among farmers, with an upsurge in gold sales after a good agricultural season. Buying of gold is an important part of every stage of an Indian citizens life at birth, marriage, construction of home, festivals, religious ceremonies, setting up of new business, and death. As India makes rapid progress in the retail arena, the Indian Jewellery market is undergoing a gradual metamorphosis from unorganised to organised formats. The jewellery business in India is estimated to be at Rs 50,000 crore. According to the independent estimation studies conducted by World Gold Council and McKinsey, out of the overall market share, the share of organised jewellery market is less than Rs 1,000 crore. This accounts to about 2-3 per cent 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, apparel, and perhaps second only to the foods sector. Interestingly, organised retailers have attempted to understand the market, anticipate social changes and strategise appropriately. They have ceaselessly endeavored to derive the formulae of What the consumer wants? The young Indian woman who is the prime market for the organised 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, organised retailing offers quality products, follows standardised practices and uniform pricing strategy. Organised 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 (TG). There are several examples of retailers who are drawing in consumers either across a wide swathe or a segment of socio-economic classification, clearly defined by them. This has been the first step towards organised jewellery retailing in India. In a short span of time, organised retailers have successfully implemented a change in the buying pattern of the Indian consumer. 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.

RESEARCH METHODOLOGY PURPOSE OF STUDY The previous research done on branded and non branded jewellery markets are 1) Indian Gems and Jewellery Market - Future Prospects to 2011 2) The impact of recession on the jewellery industry 3) The growth of the Branded jewellery market in India No study has been done to find out the preference of consumers between branded and non branded jewelers. The study would also help to find out the consumer preference and their buying behavior towards branded and non branded jewelers, this would help both the retailers to know what are the consumer preference and what strategies should they adapt to grab the market. PROBLEM STATEMENT In spite of product quality, services branded retailers provides why do people still prefer buying jewellery from local retailers. STATEMENT OF OBJECTIVES 1. To compare between Branded and Non-Branded Jewellery. 2. To know Consumer perception towards Jewellery. 3. To know the Major Players of Jewellery industry. 4. To identify which parameters play a vital role in the selection of Jewellery.
5. To identify the segment under which branded and unbranded

jewellery is mostly preferred.

6. To identify whether price factor plays an important role in the

purchase of jewellery.

7. To know the Marketing strategies used by various jewellery brands. HYPOTHESIS H working hypothesis: There is no significance difference among the consumer in the parameters such as Celebrity endorsement, Promotion, Wide Variety of designs, Brand Name, Exhibition and New Collection which attract them for the purchase of jewellery. Ha: There is a significance difference among the consumer in the parameters such as Celebrity endorsement, Promotion, Wide Variety of designs, Brand Name, Exhibition and New Collection which attract them for the purchase of jewellery. H working hypothesis: Purchase of jewellery is not preferred from the family jeweller compared to that of branded Jeweller Ha: Purchase of jewellery is preferred from the family jeweller compared to that of branded Jeweller H working hypothesis: Jewellery is not considered as status symbol for most of the consumer. Ha: Jewellery is considered as status symbol for most of the consumer. H working hypothesis: Price does not play an important role in purchase of Diamond jewellery Ha: Price does play an important role in purchase of Diamond jewellery

DEVELOPING THE RESEARCH PLAN The data for this research project would be collected through questionnaire. A structured questionnaire would be framed as it is less time consuming, generates specific and to the point information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers. Both type of questions i.e. Open ended and closed ended, would be used. TYPE OF RESEARCH: DESCRIPTIVE QUALITATIVE AND QUANTITATIVE COLLECTION OF DATA 1. Secondary Data: It was collected from internal sources. The secondary data was collected from the articles, news papers, management books, and the internet. 2. Primary data: They were the main source of Primary data. The method of collection of primary data would be direct personal interview through a structured questionnaire.

SAMPLING PLAN Since it is not possible to study whole population, it is necessary to obtain representative samples from the population to understand its characteristics. 1) Sampling Units: would comprise of men and women. 2) Research Instrument: Structured Questionnaire SAMPLE SIZE

100 respondent

The primary data would be collected from 1) Non branded and branded jewelers -Non Branded jewellery: Alok Gupta, mahalaxmi jewelers -Branded Jewellery: Prasad Sane e-mail- sprasad@gitanjaligroup.com B-10, Laxmi Tower, Bandra Kurla Complex, Bandra (E), Mumbai 2) The population of Mumbai city The secondary data would be collected from: 1) Books 2) Magazines/ Project report 3) Internet 4) Articles The questionnaires response format for the population would be close ended questions. With a mix of question types varying from ranking, multiple choice to checklist questions. The attitude of the respondents would be measured by itemized category scales, pictorial scale. The questionnaires response format for the branded and non branded jewelers would be open ended as well as close ended questions. TYPE OF SAMPLING:-Simple random sampling technique

SCOPE OF THE STUDY

The gems and jewellery industry occupies an important position in the Indian economy and is one of the fastest growing industries in the country. The study considered sample respondents residing in Suburban Mumbai i.e Bandra to Virar only. Study would help both the retailers to know what are the consumer preferences and what strategies should they adapt to grab the market.

Literature Review
Jewellers say duty on branded items will hinder new entrants ET Bureau,Feb 28, 2011 MUMBAI: The next time a consumer enters a branded jewellery store of Tanishq or Gitanjali, she will have to shell out a tad more on her purchase. This is because government has reintroduced 1% excise duty on branded jewellery and branded articles made from precious metals like gold, silver and platinum after waiving it two years ago. The levy will not apply to unbranded jewellery and articles such as utensils made from precious metals, etc. Even branded jewellery or branded precious metal articles that are exported are exempt from such a levy since it would otherwise end up in exporting taxes. Leading jewellers such as Gitanjali have termed the move as "one that will lead to a lot of nuisance since the brand is not marked on the jewellery pieces." ML Arora, AGM of Bank of India, said the amount would be absorbed by the consumer since it was not "very significant." Another leading PSU banker, who earlier worked in the bank's bullion division, said jewellers could resort to under-reporting of branded jewellery manufactured to avoid the levy. While one jeweller said the levy could result in unmarked jewellery sales being stepped up, the PSU banker said such a step was unlikely as it would reduce the brand equity of the seller. "I think the margins branded jewellers earn are good enough to absorb the excise duty if they decide not to pass it on to their consumers. If they choose to pass on the cost, it will not make much of a difference to the consumer as she buys branded jewellery assured of purity and resale value." The Gems & Jewellery Federation, a nodal body of domestic jewellers, is set to appeal to the government to waive the levy. "The reintroduction of the abolished 1% excise duty on "branded" jewellery, is a retrograde step for the industry. Five years ago we made representations to the government and subsequently the excise duty was withdrawn two years ago.We do not understand the rationale behind this step. These kind of levies and back door licence raj measures will create hardship, litigation and encourage corruption. We urge the finance minister to rollback the 1% excise duty on "branded" jewellery. Interestingly, to give a boost to local gold refining and improve the backward integration process, the government has decided to reduce the excise duty on serially numbered gold

bars, other than tola bars, made from ore/concentrate in the same factory to Rs 200 per 10 gms from Rs 280 per 10 gms. This concessional excise rate is also being extended to serially numbered gold bars made from gold dore bars. A gold dore bar consists of gold in the raw form. "The decision to allow imports of ore and concentrate was introduced in the previous budget and the reduction in excise is to encourage people set up gold refining facilities here and strengthen backward integration," said Rajesh Mehta, chairman, Rajesh Exports. He added that his company would take a call on setting up a refining facility in due course. The reduction in excise on bars will benefit the upcoming MMTC-PAMP gold refinery being set up in north India. Apart from these measures, an excise duty of Rs 300 per 10 gm will be levied on gold produced during the copper smelting process. Hindalco and Sterlite are the major copper smelters in the domestic market. An excise duty of Rs 1500 per kilo will also be levied on silver manufactured during gold refining from ore or concentrate, dore bar and also during copper smelting stage. Indian branded jewellery segment to grow 40% p.a: McKinsey report By: Diamond World News Service Analysts have pegged good hope for the branded jewellery market in India, which accounts for around less than 10 percent of the entire domestic jewellery market pie according to Credit Analysis and Research Limited (CARE). According to a report by McKinsey, the same is likely to witness a growth rate of 40 percent per annum to touch Rs. 10,000 crores this year. The report predicts sales of non-branded jewellery products to grow at around 12 percent. CARE pegs the domestic jewellery market at US$ 16 billion. It is estimated that the domestic jewelelry pie id sliced as about 96 percent being unorganized (representing 300,000 traditional retailers or family jewelers present only in one town, while 4 percent comprise of the organized sector. The branded jewellery segment offers around 50 brands today from 30 players six years ago. Many players are reporting close to 80 percent growth rate. With names like Tanishq, Nakshatra, Gili, Cygnus, Sangini, Asmi, D'damas, and more, the domestic market has also seen some penetration of international luxury brands, like Tiffany, Dolce Vita, Bvlgari, Chopard, Cartier, Harry Winston, Damiani, Di Modolo, Pranda Jewelry and Christian Dior ( are expected to venture into Indian domestic jewellery market). The McKinsey study has pegged the Indian luxury market size at $3.5 billion with a growth upto $30 billion by 2015. The Gem and Jewellery Export Promotion Council (apex body for the Indian G&J industry) has been making efforts to promote Brand India in the global jewellery market, with concepts like Anant, India International Jewellery Week, and such other events, and representing the sector to the government for friendlier policies for the sector.

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Analysis of literature Review

In spite of the economic slowdown experts believe that it will grow at a CAGR of 25%. There are also statements like the industry does not cover the entire population making a scope for further growth. The review also brings light to the fact that the Indian consumers are price sensitive and hence the branded jewelers cannot charge exuberant prices for the same. The jewelers have to offer designs that are more Indian in their culture rather than aping the west this can be proved by the e.g. of Tanishq and should also be affordable. Since the thesis focuses on a comparative study of the popularity of branded v/s non branded jewellery the review helps understand the growth of the retail industry which have leased branded jewellery stores and also the popularity of traditional goldsmith The number of foreign entrants also pose a challenge to the traditional jewelers and hence we can see that these jewelers also come up with strategies to retain their customers these practices were not prevalent in the market previously. The branded jewelers on the other hand have to adapt strategies to win the trust of their customers and attract new customers. A few research reports also help us gauge the changing trends in the jewellery market and the popularity of diamonds.

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LIMITATIONS OF STUDY
The scope of study is limited due to the following reasons: 1) Sample size- the sample size of the study is only 100 which would not give a comprehensive result. Many important samples may not be considered at all. The conclusion of the study may not result to an accurate outcome due to the sample size being small. 2) Bound to only western suburbs of Mumbai- the other limitation of the study is it is limited to only the western suburbs of Mumbai and ignores the samples from the central as well as the harbor and south end. The buying behavior of an individual varies from place to place. 3) Awareness- the sample taken and the conclusion drawn can be led to only one side if there is lack of awareness about branded jewellery.

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CONCLUSIONS
The project will help to study the consumer preference over branded and nonbranded jewellery. The main objectives of the study were to compare between Branded and Non-Branded Jewellery, to know Consumer perception towards Jewellery, to know the Major Players of Jewellery industry, to have an idea about parameters consumer consider while buying Jewellery, to have knowledge about demographic segments, to know the Marketing strategies used by various jewellery brands. India is growing at a very fast pace and jewellery sector is one which is registered to achieve 65% international market by 2011. The jewellery sector is largely unorganized in India but is changing into organized business because of many major and influential players entering into the market and have started organizing the market and focusing all segments of customers such as Tanishq by TATA and Gili by Gitanjli jewellers etc. The branded jewellery sectors is only 2-3% of the total jewellery market in India but most of the brands have been able to make a mark on consumers with their highly satisfying marketing strategies. The local jewellers or the unbranded jewellers do not provide any guarantee of the purity and quality but brands such as Tanishq introduced karometer in their outlets which help the consumer to test the purity of the jewellery. As jewellery sector is changing, consumer is also changing today they are more aware, have greater disposable income and want to be more secure. That is why when given a preference between branded and non- branded jewellery most respondents choose branded jewellery. The booming economy along with the rapid increase in income levels is estimated to further accelerate the growth of this industry. According to a KPMG study, Indias growing importance in the global jewellery market is only expected to increase in the future with total estimated jewellery sales of US$ 21 billion by 2011 and US$ 37 billion by 2015. Diamond jewellery consumption in India is also estimated to jump by 78 per cent in 2011.

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BIBLIOGRAPHY
The magazines and journals referred:Solitaire International Journal of Gem Industry

Web sources:www.retailbiz.com www.business-standard.com www.valuenotes.com www.indiandata.com www.google.com

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