Market Analysis On Jewellery In India

Market Analysis On Jewellery In India 1.0 Introduction Marketing communication plays a vital role while launching a new brand or product in todays cut-throat market. It is a form of persuasion which plays the role to understand the communicators purpose (ethos) and the communication process (pathos) thus in having an influencing effect with the customer(logos) This document describes in-depth the process involved to launch a new brand of jewellery called Cadbury Gems Limited in the Indian market as well as the UK market. 2.0 Cadbury Gem Analysis Cadbury Gem has product line only in the jewellery in gold, platinum, colored gems and diamond. By 2015, its main focus will be on corporate social responsibility while operating any process. It has plans of launching Teenager Collection of white jewellery by 2014. Their main competitors are Tanishq and Gili. 3.0 Market Analysis on Jewellery in India The Indian jewellery market is large and consist of unbranded where branded jewellery accounts only for less than 2% per year and 300,000 consists of unorganized one. The dominant players in the field of jewellery manufacturing are Italy, Hong Kong, China, Thailand, United States. Leading player in the Indian jewellery are Gili part of the Gitanjali Gems Limited and Tansihq, Reliance Jewel, Joyalukkas. 4.0 About Cadbury Gems The Cadbury Gems Limited will cater the primary target women and secondary target men in the age group of 25-40 years in the domestic market and the international market. It will provide a differential advantage by providing Personalized Service for loyal customer in terms of design and patterns and expert advice on wedding jewellery in the UK market. 5.0 PEST Analysis Political The Indian Government has taken up measures to lower import duty of platinum and gems ,colored stones are exempted from tax .There are plans of Indian Government to establish Diamond Bourses. Economic Due to the global economic recession, Indias gems and jewellery export and import also got affected it.The dynamic change in the exchange rates of pounds and INR affects the domestic as well as international market .It affected the GDP of Indian economy and thus lessen the consumer expenditure too affecting the sales. Socio-Cultural The socio and cultural plays a huge role in the Jewellery market of India as jewellery is considered to be a tradition from ancestral time and it is a necessity in many of its cultural occasion . Technological India has become the leading manufacturer in terms of jewellery because of its advanced technology and according to GPEC there is a rise of 18% to 407.36 lakh carats for cut and polished diamond. 6.0 Competitor Analysis 6.0.1 About Tanishq Tanishq is one of the pioneers in branded jewellery and largest jewellery brand in India founded in 1995 AT Hosur, Tamil Nadu. It is a part of Titan Industry-group endorsed by the Tata Group. It has 118 stores in 76 major cities of India and has a market share of 50% in branded jewellery. Tanishq product lines consist of the following: Tanishq Diamonds Tanishq Gold Tanishq Platinum 6.0.2 Segmentation Tanishq has segmented its consumer based on the three types. They are segmented as follows: Behavioral Tanishq exemplifies behavioral segmentation as it portrays purchase occasion based on festival like diwali, akshaya, tritiya, karva chauth. It also segment its jewellery as everyday wear, special occasion wear and wedding wear like Lightweight Colours an everyday wear, Enamel and Diamonds Psychographic and Profile It also shows profile and lifestyle segmentation as it segments its jewellery called Collection G called nine-to-five jewellery. It also has collection called All Day Diamonds which are affordable and can be worn throughout the day 24 *7. It also tries to capture the different designs in new region like Bengali design in Delhi, Kerala style in Tamil Nadu etc 6.0.3 Targeting Differentiated: Different marketing mix are applied for each segment. Customized: Different marketing mix are applied for each customer. Differentiated marketing and customized marketing strategies are used. Its design was created for niche market for elite Indians but then concentrated on mass marketing. It targets women who are modern yet grounded and men who are above 25 years. 6.0.4 Positioning Uses product repositioning and act as a brand for elite people in India of international brand but then re-positioned in the market as Jewellery for adornment. Tanishq has come up with Aamra mix of western and traditional .It position the brand which provides trust and guaranteed purity. 6.0.5 Communication Strategies Tanishq Pull Strategy Advertising To create brand equity it uses the approach of 360 degree. They focus on celebrity endorsement as people in India are highly obsessed with the celebrity and create a huge impact and associate with events like marriage , diwali,raksha bandhan. Print advertisement Tanishq target the leading woman magazine like Femina, Filmfare which are very popular in India and other leading newspaper like The Times of India and such advertisement are frequent during occasions and it is quite seasonal. Tanishq Push Strategy Sales promotion and associating with Events Tanishq has a tie-up with Bollywood movie like Paheli. Promotion like Free Gold Coin Campaign, then Freeze Your Gold Price during the festival of Dhanteras are used. Public Relation Recently they have organized Diamonds of Class which target woman who are bold and the beautiful where Tanishq diamond complementing her lifestyle. Direct marketing Internet Sales and catalogues are used. Offers and Discount It offers and discount in festive occasion like Diwali, Mothers Day, Valentine Day, Environment Day and also target specific segment of working woman by coming up with the collection called Tanishq Collection-G .It also organizes joint promotion with LOreal and Wills Lifestyle. 6.1.1 About Gili Gili is a part of the Gitanjali Gems Limited (GGL).Gili is founded in 1994 and it is symbolizes youth, love and emotions has its headquarter is based at Mumbai. It is known for producing a heart-shaped diamond of 0.03 carat and 25 patented patterns. It has 3000 retail outlet in India and contributes a share of 40% in an organized jewellery market. It has a market share of 8.3%. Gili has collection of Work Valentine Traditional Teens Mens Collection Mangalsutra 6.2.2 Segmentation Gili segment based on the following: Behavioral Gili has segmented based on purchase occasion like Valentine, wedding, birthday, anniversary and has Valentine ,Mangalsutra,Traditional collections. Profile and Lifestyle Gili again has work collection .They have the Men collection and have jewellery based on the income like segmenting the jewellery with price. 6.2.3 Targeting Gili follows the differentiated and mass marketing. It creates a sense of high-quality studded diamond of contemporary design. They have the collection for working woman in particular. They have targeted even the men with Mens collection.They target in the age group of 15-30 years of age. 6.2.3 Positioning Image repositioning its brand as a brand which represents trust by adhering to authentic certification, quality and reliable by keeping standard practices .It creates a differential advantage by positioning as a brand that created the first 0.03 karat heart-shaped diamond the smallest in the world. 6.2.4Communication Strategies Gili Pull Strategy Advertising Bipashu Basu is the brand ambassador and endorses the products by associating it with events like Valentine day. Print Advertising in leading newspaper like The Telegraph, Times of India and advertising in leading magazine like Filmfare. Gili Push Strategy Events Indians are fascinated by the celebrities so they organized star visits and sponsoring films like in Vivaah,Krissh .They also sponsored the Lakme Fashion Week and Femina Miss India Contest. Joint- Promotion It is done through retailer like Shoppers Stop. Direct-mailers and catalogue They employ this strategy and received a huge feedback and have increased the sales enormously. 7.0 Launch of Cadbury Gem in India 7.0.1 Communication Objectives To generate brand awareness of 60% of Cadbury Gem to both men and women who are in the age group of 25-40 by March 2012. To create a brand image that can be trusted and caters Personalized Service in terms of design. To change peoples attitude that jewellery can also be worn by men often. 7.0.2 Communication Strategy Pull strategy will be used to create awareness. To create brand image of trust which caters Personalized Service profile strategy will be used. Communication appeal will be more of emotional like the experience associate with the festive season and events and the benefits and a bit of rational like the price and the quality it will offer. The perceived risk will be financial risk. 7.0.3 Segmentation Cadbury Gems will segment based on Behavioral It will be based on purchase occasion, purchase behavior, usage segmentation. Purchase occasion As done by the contemporary, it will make use of occasions like Wedding Anniversary, Birthdays and important Indian festival like Raksha Bandhan,Holi. It will create collection such as Festive Collection suitable for any festival and All in One Occasions collection. Purchase behavior It will target the innovators who are ready to take risk in buying the product as soon as the launch is done. Usage segmentation: It will target heavy as well as light user i.e women who are already using and men who just contribute 20% of the jewellery purchase. Belief and Values It will target men and women who believe in living and celebrating life. Psychographic It will used lifestyle and personality segmentation. Lifestyle It will target women who are sophisticated as well as ordinary women of simple lifestyle. For men, it will target metrosexual men and has collection called Exclusive for Men. Personality It will aim at people who are innovators who accepts the new product soon and who are expressive where Cadbury Gems portrays who they are. It will have collection called Itz Me. Profile: It will use age as criteria to segment. Age It will target men and women who are in the age group of 25-40. 7.0.4 Targeting It will use differentiated and customized marketing. It will design its jewellery for men and women in the age group of 25-40 years with specified design of their choice. The customer can come up with its pattern and specification of their choice and it will take minimum lead days of 10 days to deliver to their customer. 7.0.5 Positioning: Perceptual Map: High Price Tanishq Gitanjali Gems Limited Reliance Jewellery Wide Product Range Cadbury Gem Narrow Product Range Joyallukas Low Price Fig: Perpetual Map It will use tangible repositioning for the mens collection as it will focus on mens section by creating Exclusive for Men Collection. For the womens section it will use product repositioning by introducing Itz Me collection, All in One Occasions, Festive Collection. Differential advantage will be achieved by positioning as a trusted brand which provides Personalized Services employing designers who can give feedbacks about the design the customer comes up and suggest expert ideas to the customer effectively and efficiently. 7.0.6 Message The aim of the campaign is to create brand awareness among the women who are the primary target and also the secondary target men both in the age group of 25-40 years and also to create an impact as a brand that cater the customers needs by giving Personalized Service to those customer who are loyal to Cadbury Gems. 7.0.7 Launch Date The advertising campaign will run throughout the year starting from April 2011 till the end of March 2012 giving main focus during the festive season like November, December as these are the season where major festivals occur in India. It is expected to launch its product in April 2012. 7.0.8 Budget  £20 million will be allocated as people are not aware of the products therefore huge amount needs to be invested in campaigning and advertising. 8.0 Integrated Communication Plan Integrated Communication plan plays an important role to pass the same message to the targeted audience in a consistent way so that they are not confuse, mislead if it employs different communication channel without integrating . It will used both above the line and below the line strategy and profile too. 8.0.1 Above the line Advertising on TV Advertisement will be put on popular channel like Sony ,Star Plus, Zee TV,C olors where popular soaps and serial are transmitted. Justification Impact large audience in a short span of time and helps to increase word of mouth. Short lead time Target the women of age 25-40 and put the ads in between popular soap and serials likeUttaran,Jyoti,Balika Vadhu. Frequency of the Ad will be like 7-8 times in the channels mentioned above. Magazines and Newspaper Advertisement will be placed on leading magazine like Woman Era, Outook, Readers Digest and on leading newspaper like The Hindu,The Economic Times as these are the magazines read by corporate men and women. Justification The ad will remain as long as the magazine and newspaper are kept. Target both the men and women through this channel of communication Credibility of the information is high. Metrosexual men and corporate consumer youth will be targeted easily. FM Radio Short Ad with be played in major FM station like Radio City and Radio Mirchi and Meow. Justification Low cost. Can reach large consumers faster with short lead time and Ad will be placed more around 9-11 A.M and 5-7 P.M the working hours of most of the company and timing for college goers too. Medium to high salaried people, youth who are fashion conscious of both the sexes will be reached easier. Billboards 15 X20 billboards will be placed especially near the mall, cinema -theatre, plazas and area where colleges and companies are more. Justification Comparatively involves lower cost and frequency of exposure is high. Information and persuasion can be done effectively and efficiently leading to brand awareness. 8.0.2 Below the line Direct Marketing Mails will be sent to such customer about the designs and new collection. It will target the loyal and frequent buyer of Cadbury Gem by giving loyalty card and points to those regular buyer. Customer which exceeds 1000 points will be given free Personalized Service giving expert expert advice to the design the customer has come up. Justification It will give good return of investment of if clear database is maintained about the customer. After achieving the brand awareness of 60%, direct marketing can be used to create profile strategy projecting as a brand of trust and customer oriented. Sponsorship and Exhibition It will sponsor and associate with Bollywood Movies to showcase its collection. It will also sponsor the major ramp shows held Lakme Fashion Week and events like Femina Miss India Contest, Zee Cinema Awards and organize exhibition where popular male celebrity John Abraham will be the brand ambassador Justification Helps in rectifying the customer perception and beliefs. To attract new customer and attain new customer. Chances of face-face meeting with the potential customer thus enhancing relationship building. E-media It will make use of the social networking sites like Facebook,Twitter and Orkut which are quite popular to promote their products. Justification Relatively cost-effective. Information can be spreaded like wildfire thus increasing word of mouth. 9.0 Launch of Cadbury Gem in the UK Market 9.0.1 Communication Objective To create an awareness of 5% among the non-resident Indian in the UK market by March 2012. 9.0.2 Communication Strategy To create an awareness of 5% among the non-resident Indian in the UK market by using both push and pull strategy. 9.0.3 Segmentation Cadbury Gems will segment based on behavioral,psychographic,lifestyle and personality as done in the domestic market. It will adopt the same strategy. 9.0.4 Targeting The strategy of targeting remains the same as in the domestic market i.e differentiated and customized. 9.0.5 Positioning Intangible positioning will be used for the men by introducing Western Mens Collection. Product positioning will be used for women and it will introduce Elegant Collection and will position as a brand that provides special attention on design and pattern on occasion of the wedding. 9.0.6 Message Its aim is to create awareness in the same sector and also to create a brand image which provides special assistance for wedding jewellery by introducing its Sophisticated Jewellery for Wedding with expert advice on design and patterns. 9.0.7 Budget Only  £10 million will be invested in campaigning and advertising. 9.0.8 Above the line It will use advertising on TV on the same channels as in domestic market ,advertisement will be displayed on magazine like Marie Claire,Vogue and Cosmopolitan exclusively. Justification NRI in UK invest their time and money on such hi-fi magazine and moreover they find the information credible. 9.0.9 Below the line It will use public relation like exhibition, sales promotion and e-media. Exhibition The exhibition will be especially for the NRI like Sophisticated Jewellery for Wedding with expert advice on design and patterns, Western Mens Collection for men and Elegant Collection for women and letting the celebrity like the former Miss World 1995 Aishwarya Rai Bachchan the brand ambassador of Cadbury Gem in such exhibition as glamour and glitz business impacts NRI in a huge way. Justification Creates awareness more as compared to other form of media. It gives a direct feedback from potential customer, face to face communication and it is an ideal way to attract new customer when new products are launched. Sales Promotion: Offer like free accessories i.e ray-ban sun glasses, branded make-up kit and discount of 20% will be given to customer who buys  £420 of jewellery. Justification It will attract the new customer and may boost up the sales when the product is too new in the market. E-media : It will make use of the social networking sites like Facebook,Twitter only as Orkut is not in use by the NRI. The reason for using this is that majority of the NRI are computer savvy.. 9.0.10 Cultural Influences for UK launch A niche market will be used to target the non-resident Indian (NRI) and there will not be huge impact of cultural influence but in terms of jewellery design it should be more sophisticated and elegant and a mixture of Indo-Western. 9.0.11 Assessing Advertsing Effectiveness Pre-testing Focus group and concept testing can be used before the launch. Post-testing Enquiry test, feedback, surveys can be used to test the recognition and recall test. This will give an idea whether the customer has accepted the product or not, if yes how much, if not where it has to give focus. 11.0 Conclusion Cadbury Gem jewellery will be launched in both the domestic i.e India and international market i.e UK keeping into consideration the various strategy and tactics that needs to be considered while launching in different market. 20million INR will be spent in the domestic market in advertising as it is competing with already established jewellery brand Tanishq and Gili. It will allocate only  £10million INR for the international market as the objective is to create awareness of only 5%. 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