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INTRODU
CTION
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CHAPTER - I
INTRODUCTION
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.
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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.
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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
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functions, the rationale being that gold is pure having passed
through fire in its process of evolution.
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.
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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.''
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.
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.
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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.
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jewellery players tried to change the mindset of the people and
woo customers with attractive designs at affordable prices.
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Regional preferences of Indian Customers in gold jewellery
TABLE I
KARAT CALCULATION
24 Carat 100 percent pure gold
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rise in the rupee gold price over the last decade, gold demand from
Indian Customers continues to grow.
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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.
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.
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.
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.
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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.
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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
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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.
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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.
``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
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per design,''says Mr. Mahesh. ``An exception was the Sunsign
design released last year which sold around 10,000 pieces."
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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
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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
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RESEARC
H DESIGN
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CHAPTER 2
RESEARCH DESIGN
RESEARCH DESIGN
Statically tools have been used to present the data and to analysis
the data.
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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.
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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.
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.
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b). Sampling Design
Size of Sample
Questionnaire Schedule-50
Sampling Unit
The research was conducted at Dharamshala situated in
Kangra District at Himachal Pradesh.
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;-
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LIMITATIONS OF THE STUDY
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References:
1. Kapoor, Saigal MS (2013): Research Methodology, Methods &
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CHAPTER-
III
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DATA
ANALYSIS
AND
INTERPRE
TATION
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