CHAPTER II

MARKETING ASPECT

I.

MARKET ANALYSIS
The ARC Jewelry Store is specifically targeting women in the Sta. Lucia Grand East Mall.
Women and men in the workplace, as well as women and men that are sociable in the
evenings (i.e., events, parties, etc.) are the primary focus for the ARC Jewelry Store's high
fashion gemstone products. We chose this area as it is situated in Marcos Highway cor. Felix
Avenue, San Isidro, Cainta, Rizal. Also, Sta. Lucia Grand East Mall serves as one of the
nations most affluent and densely populated areas.
Women can appreciate how easy it can be to change their look with jewelry without the
expense of purchasing a whole new outfit.

II.

MARKET SIZE
There are about 250 firms in the country that are engaged in the jewelry industry,
employing a pool of more than 100,000 workers. Small and medium-scale jewelry
enterprises hold about 50 percent of the industry, while the top 10 largest jewelry chains
and manufacturers hold less than 25 percent.
a. Industry Participants
Major participants include Karat World, Unisilver, Oro China and many more.
Competitors:

Karat World - Fine jewelry for the Working Woman of today! Everyday
Jewelry with a wide assortment of Diamond and Gold Engagement and
Wedding Rings.

Goldenhills Jewelry - offers a large selection of fine jewelry made of gold and
set with diamonds, pearls, and other semi-precious stones.

Unisilver - fuses fashion polished 925 sterling silver, it caters to men, women
and teenagers who love and breathe fashion and are in tune with the latest
trends.

Aurum by Tambunting this owned by Tambunting Pawnshop and offers

different kinds of jewelry

b. Market Segments
The Sta. Lucia Grand Mall caters the Cainta area, Marikina City area, Pasig area,
and Antipolo Area. It encompasses roughly about 1,000,000 residents earning an
average P12,000 per month.

III.

MARKET TRENDS

One of the most trendy and fashionable types of jewelry on the market is gemstone jewelry.
Gemstone jewelry is made in various designs, colors, and styles with a design, which
contains one or more beautiful gemstones as a focal point. While various types of gemstone
jewelry are popular, there are different gemstone jewelry trends each year. One year it may
be considered extremely fashionable to wear ruby earrings while the next year rubies may
be out.
The latest red carpet fashion trend is pear shaped, gemstones drop earrings. Tacori is at
the front line of style. These earrings are versatile and can go from a day to night, from
jeans and ballet flats, to a sexy little black dress.
Amethyst is another popular gemstone especially in the fall. It is a great accessory to any
ring or necklace. Considered to be a precious stone, amethyst ranges in shades from
lavender to an intense, deep purple.
Another trendy gemstone is the moonstone, a gorgeous, translucent gemstone in shades
of peace, blue, pink, and white. Moonstone jewelry continues to be all the rage.
Rutilated Quartz is made from needles of the mineral known as rutile which is embedded
in crystal quartz. Rutilated Quartz is known to ease depression. Gemstones of this type are
often found in various types of jewelry from necklaces to bracelets.
Chandelier earrings are becoming increasingly popular. These earrings are an exotic,
Indian inspired design and appeals to women all over the world. Anyone would feel
absolutely radiant when wearing this type of jewelry.
Big, bold, and colorful jewelry is among the gemstone jewelry trends. Black jewelry with
large gemstones is very popular amongst various individuals today.
IV.

TARGET MARKET
We are targeting women and men in the Cainta area, Marikina City area, Pasig area, and
Antipolo Area. This is a sophisticated community and there is no doubt that the community

is the centerpiece of stylish shopping. In addition, since women are the primary end
consumers of jewelry, it's natural for our ARC Jewelry Store to spend most of its marketing
resources targeting this largest market.

V.

MARKET NEEDS
The jewelry we will market will meet the needs of woman who are looking to dress up their
outfit with quality gemstone jewelry. And also for the men who loves jewelry as there
accessories. The jewelry will be suitable for both formal and informal events.

VI.

UNIQUE FEATURES OF THE PRODUCTS AND SERVICES

ARC Jewelry Store offers customer to customized piece designed for them onsite. And in
terms of services, we offer 3 hours time frame to finish the customized jewelry.

VII.

DEMAND AND SUPPLY ANALYSIS

a. DEMAND ANALYSIS
A total of 300 respondents took part on the survey conducted by the proponents of this
business. After gathering and recording all the data, it shows that 75% of the
respondents belong to the age bracket of 18-23 years old. The result also shows that
65% of the respondents are female while 35% are male. About 85% are single while the
other 15% are married.
With regards to their monthly income, most of the respondents belongs to the income
bracket of P10,000-15,000. This also indicates that most of them are young generation
who comprise about 90% of the sample size. About 65% of the respondents are willing
to spend up 10% of their income for jewelry products mostly for women, while 15% are
still undecided to spend their income in buying jewelry products and 20% of it dont
want to spend their income for jewelry.
Among the products and services offered by ARC Jewelry Store, the respondents also
consider the price and what kind of the jewelry as the main factors in buying jewelry.

b. SUPPLY ANALYSIS
Based on the data gathered from the survey of jewelry store in Philippines, it shows that
about 250 firms in the country are engaged in the jewelry industry. Most of the seller of
jewelry give priority in providing quality service, affordable process and good
advertising/production in order to stay competitive in the service market.

VIII.

MARKETING STRATEGY
The ARC Jewelry Store will provide high quality gemstone jewelry to men and women.
Other jewelry retailers have lagged in this particular market by not concentrating on
providing a large variety of colors, sizes and designs. We intend to leverage our expertise,
product offering and marketing strategy to increase our customer base while driving sales
and profit.

IX.

SWOT ANALYSIS
The SWOT analysis provides us with an opportunity to examine the internal strengths and
weaknesses the ARC Jewelry Store must address. It also allows us to examine the
opportunities presented to The ARC Jewelry Store as well as potential threats.
A. Strengths
Strong relationships with suppliers that offer credit arrangements, flexibility, and
response to special requirements.
Excellent and knowledgeable staff, offering personalized customer service. The ARC
jewelry sets itself apart from the competition by providing customized jewelry designs
while the customer waits.
Great retail space with an attractive, inviting atmosphere.
The owner keeps overhead low by purchasing directly from local suppliers and selfcreating the majority of the merchandise.
B. Weaknesses
Access to additional operating capital.
Revenues in the industry are cyclical; the majority of revenues are earned during the
fourth quarter and 25% are earned in the month of December.
Owners are climbing the retail experience curve.
C. Opportunities
Increase in higher income of target market.
Addition of other jewelry related products and services.
D. Threats
Local and emerging competitors.
Shoplifting.
Sales tied to economic growth.

X.

4Ps of MARKETING
A. PRODUCT
The ARC Jewelry Store will specifically carry gemstone jewelry that is designed for the
professional and sociable man and woman. Our selection will range in various colors,
sizes and styles to meet the unique needs of the everyday man and woman. Here are
the lists of product offered by ARC Jewelry Store.

CORPORATE TOKEN

DIAMOND JEWELRY

ENGAGEMENT RINGS

GOLD JEWELRY

SILVER JEWELRY

PEARL JEWELRY

PINS, MEDAL NAMEPLATE

SCHOOL RINGS

WEDDING RINGS

FRIENDSHIP RINGS

EARRING

PENDANT

NECKLACE

B. PRICE
The ARC Jewelry Store will use a dynamic pricing model. All jewelry will be clearly
marked with prices - - however, our pricing policy will allow for some flexibility. In
order to increase sales revenues, our sales representatives will be authorized to offer a
maximum predetermined discount to extend to their customers. This incentive will
provide the customer the perception of extra value and a bargain purchase.
Since we are operating from a shop and not an online store we will need to maintain
somewhat reasonable and affordable prices. Some items will sell as low as P200, but
most of the products will be priced from P200 to P20,000. There are a few pieces that
will sell for P20,000 to P100,000.
C. PROMOTION
Our primary promotion and advertising strategy will be word-of-mouth.
1. WEBSITE

Due to the nature of this business being a mall shop there are no plans to develop a
website during the initial startup of the business. We will develop a website after
the first six to twelve months which will be an informational site and will not list our
products. The website will have our location, fashion related articles and
announcements of new products.
2. PRINTS ADS

Advertisement on the local leading newspaper and magazines will be utilized

to further aggressive campaign of the business to penetrate the market.
3. LEAFLETS

To be used in introducing and informing the public about the existence of

the business ARC JEWELRY SHOP which includes the location map and the
services offered.
D. PLACE
The ARC Jewelry Store will be located in 2nd floor near Watson of Sta. Lucia Grand East
Mall. It easy recognize because of the unique store faade and by the store logo.

XI.

MARKETING PROGRAM
Our marketing program will primarily consist of our highly visible and centrally located kiosk
in the Sta. Lucia Grand East Mall location.

1. DISCOUNTS
ARC Jewelry will offer 10% discounts in cash basis. And also will offer
discounts for seasonal occasion.
2. CREDIT CARD and DEBIT CARD PAYMENTS
ARC Jewelry will offer credit cards and debit cards by modes of payment.
3. SALES STRATEGY
Because ARC Jewelry Store is a new business, we understand that we will
have to prove our Company's worth to customers to earn their business. As
equally important, we need to sell both the Company and products.

We will approach sales from a salesperson-customer relationship basis. All

sales representatives will be trained and encouraged to assist customers in a
personal and engaging manner. By gathering key customer information and
seeking design feedback on our products will assist us in the following ways:
Targeting our marketing efforts more effectively.
Developing product offers that will increase sales.
Training and developing sales representatives in order to effectively
service the customer.
Increasing awareness of our ARC Jewelry Store within the jewelry retail
consumer marketplace.
Developing future sales opportunities that allow for continued growth of
the business.