INSTITUT OF MA TE ANAGEM MENT SCIENCES

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ntedto: Presen redBy: Prepar Jib branUllahKhan(0 093433) Sa anamSult tanRana(083404 4) WaqarYou W unas(101 1103) Ta auqeerAh hmadSha ami(092130) Sir rShazifIq qbal

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Contents
ExecutiveSummary ___________________________________________________________ 3
Objective:_________________________________________________________________________ 4 MissionStatement:_________________________________________________________________ 5

CompanySummary:___________________________________________________________ 5
CompanyOwnership: _______________________________________________________________ 5

MarketAnalysisSummary______________________________________________________ 6
MarketSegmentation_______________________________________________________________ 6 TargetMarketSegmentStrategy: _____________________________________________________ 7 _ IndustryAnalysis: __________________________________________________________________ 7

ProductStrategy:_____________________________________________________________ 8
Positioning: _______________________________________________________________________ 8 ProductlineEvolution: ______________________________________________________________ 8

PricingStrategy:______________________________________________________________ 9 PromotionStrategy:__________________________________________________________ 10 DistributionPolicy:___________________________________________________________ 11 ServicePolicy:_______________________________________________________________ 12 StrategyandImplementationStrategy:__________________________________________ 13

CompetitiveEdge:_________________________________________________________________ 13 SalesStrategy:____________________________________________________________________ 14 SalesForecast: __________________________________________________________________________14 _

FinancialConsiderations:______________________________________________________ 16

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ExecutiveSummary
Introduction JewelArtDesignerJewelryisadesignerandmanufacturerofuniquesilver,gold,titanium, platinumanddiamondjewelry.Thecompanymakesmanydifferentdesignsintheformof earrings, necklaces, bracelets, pendants, bangles, rings and designer bridal jewelry. All of the productsare designed and manufactured by students who are studying art at NCA Lahore.Inordertogrowandachievethedesiredlevelofmarketpenetration,thecompany hasoutlinedthefollowingmarketinggoalsoverthenextthreeyears: The placement of JewelArts designs in different galleries in Pakistan and increase awareness and sales through placement of its designs in different television dramas acrossthenetworktelevision. Increasethenumberofdesignsofferedby8%peryear. Tapintodifferentmarketsegments. Growthasfollows o 1styear: o 2ndyear: o 3rdyear: TheCompany JewelArtdesignerjewelryisacustommanufacturerofjewelrylocatedinLahorePakistan. JewelArtdesignerjewelrymakesmanydifferentdesignsintheformofearrings,necklaces, bracelets, pendants, bangles, rings and designer bridal jewelry. All of the pieces will be made by graduate students of NCA. The business will be based in the companys office locatedatGulbergII.Thecompanysellsitsproductthroughitswebsitepartnershipswith retailersaswellastwocompanyownedoutletsinLahore.Tohandlescustomerinteraction thecompanyhasdecidedtohireasalesteam. 10% 30% 40%

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TheMarket Thejewelryindustryishighlyfragmentedwiththousandsandthousandsofcraftsmenand businessmencompetingformarketshareandfame.Someworklocally,othershavesetup inmultiplecitiesallaroundPakistan.AlmosteveryJewelartisthasabusinessofhis/herown sothereisintensecompetitionandrivalryamongartists.JewelArtseesthecompetitionas following: Artists creating designs that are then manufactured on a large scale and distributed nationally. Companies that have their own designers inhouse. In this case everything is done in house,design,marketingandwholesaling. JewelArtdesignerjewelrywillbefocusingontwodistinctgroupsofcustomers.Oneisthe endconsumer;theotherisgalleries,tradeshowsandplacementintelevisionshowstobe used as a distribution channel. Everyone can access the artists that design the jewelry through our website and through interactions at the exhibitions. The galleries (museum shops,jewelrystores)willalsobemetthroughtheexhibitionsandshows.

Objective:
Theobjectivesforthefirstthreeyearsofoperationinclude: To create jewellery manufacturing company whose primary goal to provide qualitypiecesofartisticjewelleryandtoexceedcustomer'sexpectations. The utilization ofJewelArts designs in different TV dramas and jewellery exhibitions. Toincreasethenumberofdesignsofferedtocustomersperyear. Todevelopaprofitable/sustainabledesignerjewellerycompany.

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Mission Statement:
JewelArtsmissionistomakeinnovativepiecesofartinjewelleryformoutofsilver, gold, titanium, platinum and diamond jewellery. We exist to attract and maintain customers.Whenweadheretothismaxim,everythingelsewillfallintoplace.Our serviceswillexceedtheexpectationsofourcustomers.

CompanySummary:

JewelArt designer jewelry is a custom manufacturer of jewelry located in Lahore Pakistan.JewelArtdesignerjewelrymakesmanydifferentdesignsintheformofearrings, necklaces,bracelets,pendants,bangles,ringsanddesignerbridaljewelry.Allofthepieces willbemadebygraduatestudentsofNCA. ThebusinesswillbebasedinthecompanysofficelocatedatGulbergII. ThecompanysellsitsproductthroughitswebsiteaswellastwooutletsinLahore.

Company Ownership:
The companys ownership would be a partnership among the four members of our group.Liabilitywouldbesharedaccordingtotheshareofpartnership.

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MarketAnalysisSummary

JewelArtwillbefocusingontwodistinctgroupsofcustomers.Oneistheendconsumer;the otherisgalleries,tobeusedasadistributionchannel.Theendconsumerwillbeinteracting with the NCA students through our website as well as through personal contact at exhibitions/shows.Thejewelrystoresorshoppingmallswillalsobeattractedtokeepand distribute our product through the exhibitions and shows. At these events a long term relationshipwillbeenteredintosothattheshopsbecomearetaildistributionchannelfor JewelArt. Additionally, JewelArt will be traveling the Punjab Province meeting with differentgalleriesandsettingupretailingrelationshipswiththem.

Market Segmentation
JewelArthastwotargetedgroupsofpeople,jewelrystoresandindividuals: ShoppingMallsThesebuyersarepurchasingjewelrywholesaleinquantityand resellingittothepublic.SomeofthejewelrystoresareinMallofLahore,Liberty Market, and Fortress. The margins are not as good compared to sales to individuals and there is also the expense of setting up relationships with the Mallstoselltheartpieces,butmallsmovealargequantityofwork.Themalls and storesthat typically are interested in JewelArt work are more upscale and modern.Theyappealstoacrowdthatfavorsprogressiveorindustrialdesign. IndividualsThesebuyersarefamiliarwithJewelArteitherfromstumblingacross the website, saw some examples of our NCA teams work at a showing or art festival,wordofmouth,orsomeotheravenue.Theindividualwouldthenview the different available pieces on the website and place the order via the Web, phone,fax,ormail.Themarginsforindividualsalesaregreaterbecausethereis notadistributionlayerinvolved;itisdirectfromJewelArttotheendconsumer.

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Theindividualsthataretypicallyattractedtothistypeofartworkaregenerally from cities and are fairly progressive. The reason for this is that the jewelry, while not flashy, is not all that conservative looking. They are intricate pieces, typicallyusingorganicshapesandindustrialdesign.Thisisthereasonthatmore progressivepeoplewillappreciatetheJewelArtpieces.

Target Market Segment Strategy:

JewelArtDesignerJewelryistargetinggalleriesandindividualsbecausetheyarethe mostlikelypurchasersofthejewelry.Galleriestypicallypurchaseworksofartfrom many different artisans. The galleries will first come into contact with JewelArtthroughexamplesoftheworkatanexhibition,ortheretaileriscontacted byoursales representative and shown samples. If there is interest, thegallery will placeanorderforafewrepresentativepieces.Thisishopefullythebeginningofa longtermrelationshipwherethegallerywillthenreordermorepiecestoreplenish theirstockaswellastohopefullybroadentheirproductoffering. JewelArtstarget segment strategy for the individuals will also be based on exhibitions.Theindividualwillseeexamplesofourteamsworkandeitherpurchase theproductrightthen,orwillbereferredtothewebsitewhereacompleteproduct listingisavailableandallpiecesaresold.Additionally,individualswillcomeacross ourwebsite,eitherfromareferraloratargetedWebsearch.Theindividualisable tomakeapurchase,orfindoutwhatgalleriescarryJewelArt'spiecestoviewthem inperson.

Industry Analysis:
The jewelry industry is quite large and diverse. There are countless different craftsmen and businessmen making and selling so many different pieces of work. ArtisanseverywhereinPakistanmakeandselltheirownjewelryeitherthroughtheir own shops and stores or rendering their services to a gallery or retailers. Mostly everydesignerjewelrycompanyhastheirinhousedesignerteamwhichdesignsall oftheirproducts.
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ProductStrategy:

JewelArt designer jewelry will make many different designs in the form of earrings, necklaces,bracelets,pendants,bangles,ringsanddesignerbridaljewelry.Allofthepieces will be made by graduate students of NCA. All of the jewelry will be designed in unique silver,gold,titanium,platinumanddiamondjewelry. Atfirstwewilldesignjewelryonthebasisofdesignsprovidedbyourdesignerswhilelater we will offer customized jewelry based on the choice of the consumer and what he/she wants.

Positioning:
We will position ourselves as a premium artisans and providers of designer and customdesignedjewelry.Wewillofferthehighestendqualityoftheproductand meet all of the customers expectations. On the service side we will provide after salesservicesforalimitedamountoftimefreetoourcustomersforpolishingand repairinganydamagetotheproduct.

Product line Evolution:

Inthefirstyearofthebusinesswewillofferdesignsbasedonthecreationsofour teamatNCA,abstractdesignsandshapeswefindineverydaylifeandinspirational designsfromthedrawingsofchildrentakenfromdifferentschoolsandeducational institutions. In the second year we will introduce services such as customized designs for our esteemedcustomersatareasonableprice.Wewillprovidethisnewserviceonour websiteandalsoinouroutlets. In the third year we will introduce a premium range of our product which will be designedbyrecognizedandrespecteddesignersandfromotherartisticindustriesin Pakistanaswellasallaroundtheglobehopingtocapturethemarketfurthermore.

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PricingStrategy:
Wehaveplannedourproducttobeapproachablebyeveryonebutourmainfocusisonthe salesofgoldandtitaniumjewelryfortheuppermiddle,upperandtheeliteclass.Basedonthis ourpricewillvaryfromaround10,000to500,000basedonthemetaltobeusedandthework tobedone.Thepricealsodependsonourworkteam.Themoreefforttheyhavetoputinto thepieceofjewelry,themoretheycanchargeforit. SpecialdiscountsandpricepromotionswillbegivenonspecialoccasionslikeeidandNew Yearsandpromotionalpackageswillbeofferedtocustomersabouttogetmarriedorhavea weddinganniversarycomingup. Wewillchargeafairlylowpricepremiuminthefirstyearsoastopenetratethemarketandget agoodrecognitioninthemarket.Inthefirstyearoflaunchwewillbeimplementingtheabove strategywhileinthe2ndand3rdyearwhenwegivemorecustomizationoptionsanddesigner jewelrydesignedbycelebrities,wearegoingtochargemorepremiumprices. PriceVariationbyYear

PriceVariation
7 6 5 4 3 2 1 0 Year1 Year2 Year3 PriceVariation

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PromotionStrategy:
Our main goal is to attract individuals and galleries/retailers. We will display our

products in different galleries firstly in Lahore and then all around Pakistan so as to attract retailers into making strategic partnerships with us for the promotion and distribution of JewelArtsdesigns.The individualswillbeencounteredbyourdesignandpromotionteamat theseeventssoastoinformthemmoreabouttheproductandthedesignswhichwillcreate and enhance customer awareness. This may lead to a word of mouth and social media marketingwhichwouldresultinmorecustomersdemandingJewelArt. Ontheadvertisingsidewewillbefocusingonbannersandotherprintmedia.Wewill

also promote JewelArt through our website. Internet would be the main focus of our promotionalstrategywithadsrunningonfacebook,twitterandothersocialwebsitesandsites fromPakistan.

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DistributionPolicy:

AttheinitialstagesofthebusinessthedesignswillbedistributedonlyinLahore.Wewould haveformedstrategicpartnershipswithdesignermerchandisedistributorstoeithersendour producttoathirdpartyretailerorthroughourstrategicpartnersownstores. Wewillbelookingtobuildstrategicpartnershipswiththefollowingcompanies. Inthefirst8monthsweplantoopentwooutletsinLahoretosolidifyourname,increasethe sale.Theseoutletsareplannedtobelocatedatspecificlocationstoattractthedesiredgentry whichisourtargetsegment.Thelocationsare DHAYBlock MMAlamroad UnzeLondon(OutletsinSiddiqueTradeCentreandDHAYBlock) Stoneageaccessories(outletsallaroundLahore) BareezeandLeisureclub

Theselocationsprovideuswithastrategicadvantageofcateringtotheeliteanduppermiddle class.

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ServicePolicy:

Servicewouldbethemainfactoronwhichwewouldbecompetinginthemarket.Byproviding outstandingbeforeandaftersalesserviceswewillbelookingtomainasteadyrelationshipwith thecustomertoincreasethestreamofrevenuegeneratedfromaparticularcustomer. Thebeforesalesserviceswouldincludeadetailedandeasytousewebsitetoplaceorders online.Thiswebsitewouldalsoincludeafluentorderflowwithlittlehassleforcustomerswho wanttoorderonline.Theycanalsoorderforoursalesrepresentativetogotheirhomefor viewingoftheselectedpiecesofjewelrytheyhaveliked. Oncetheoutletshavebeendeveloped,theywouldofferdecentaestheticsandafriendly environmentforourcustomers.Itwouldbeaplacewhereourcustomersfeelcomfortableand browsethroughwithoutanydiscomfort.Oursalescrewandthedesignerswillbeavailableto assistthecustomersinchoosingandprovidingmoreinformationrequired. Aftersalesserviceswillincludefreerepairandpolishingofjewelry.Customersmaybringthe purchasedjewelryorcalltogetitpickedupbyourrepresentativetohaveitpolishedorgetit repairedfreeofchargetwiceafterpurchase.Afterthattheywillbechargedaminimumfeefor theservices. Theymayalsogetthejewelryinsuredagainsttheftorlossprevention.Weplantoforma partnershipwithEFUinsurancetoprovidethisservice.

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StrategyandImplementationStrategy:
JewelArtisourjewelrydesignandmanufacturingcompany.Ourcompetitiveedgeisourteams artisticskill.Whilewedonthaveamonopolyofartisticskill,ourteamslevelofcreativityand expertiseisveryprofessionalandunique.Ourteamwillbeapplyingtheircompetitiveedgein the development of some wonderful pieces of art. These works will be sold initially by us throughshowsandexhibitions,aswellasthroughstrategicrelationshipswithourretailoutlets. Toward the end of year one, we will cease handling sales activity personally and hire an independentsalerepresentativetohandleexhibitionsandretailers.

Competitive Edge:
JewelArtscompetitiveedgeisfairlysimple.Itisbasedoncreative,unusualdesigns. Whilethisstrategycanbereplicated,itisnoteasy.Creative,unusualdesignsrequire skill. That skill we occupy with our NCA design team which can create unique, attractiveandeyecatchingdesignsthatourconsumerswilllove. Wewillbecreatingourpointsofdifferencebyprovidingthehighestlevelofdesigns andcustomizedproductsmainlyonthefollowinglines. Unique designs in jewelry by our capable team of designers and artists fromNCALahore. Providingcustomizedserviceslikemakeyourowndesign. Making jewelry pieces based on abstract and everyday things like drawingsfromlittlechildren.

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Sales Strategy:
JewelArtssalesstrategywillbetargetedatgettingawiderangeofgalleriestocarry itsproducts.Thiswillbedonewithtwomethods.Thefirstisattendanceanddisplay at different shows. The shows are typically craft shows, art shows or art festivals. Although final consumers attend these shows, buyers from galleries attend these shows to meet artists and form relationships with them. The other method of reaching the galleries is through the processoftravelingto different galleries and speaking with the buyer or owner and showing them the pieces that JewelArt designs. Toreachtheconsumer,oneofthemethodsisthesame,theshows.Asstatedinthe previous paragraph,end consumers attend these shows andmany different pieces willbesold.Inadditiontothismethod,acompletecatalogofthecollectioncanbe viewed and purchased over the Web. While some people like to hold the actual piecebeforepurchasing,thephotosontheWebarequitedetailedandpeopleoften feelcomfortableorderingapiecedirectlyfromthewebsite.Ifthecustomerdesires, piecescanbesentoverthroughacompanyrepresentativeforafirsthandlook.After salesservicessuchasrepairingandpolishingofthejewelrywillgivethecustomeran addedbenefitandanextraincentivetobuy.
Sales Forecast:

The first month will be spent setting up the workspace, hiring sales staff and buildingupinventory.Thesecondmonthwillbespenttravelingaroundvisiting galleries trying to set up distribution channels. Month threewill mark the first month of some sales activity. JewelArt will have been to several exhibits and soldproductsaswellaspiecessoldthroughthewebsite.Frommonththreeon sales will increase incrementally. Our team will be on the road usually about a week per month traveling to different galleries and exhibits. This will occur till month eight. Month eight will mark the time when Month eight will mark a largerincreaseinthesalesbecausethecompanywillexpandbyopeningitsown outlets.
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Onayearlybasis,thefirstyearwillbeabitslowinsalesbecauseweareentering intothemarketandexpandingourbusinessandthemajorinvestmentsaretobe done in this phase. Year two will see us increase in sales because of the customization option that we will introduce at the beginning of that year. We wouldhavebeenestablishedinthemarketbythenandwouldhavedonealotof promotionalactivitiestoincreaseawarenessandtherebysales.Wewillexpand to more cities of pakistan with year 3 and begin a strong marketing and promotionalcampaignalongwiththat.

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FinancialConsiderations:

Capital: WehaveacapitalbudgetofRs.10,000,000.Ourmajorexpensewillbepurchasingtheraw materialsforourjewelry. Settingupcost: Whilesettingupthebusinesswewillincurcostsonthefollowing Legalfees. Websitecreationfees. Homeofficefurnitureincludingdesk,filecabinet,chairs. Computerincludingprinter, DSLhookup. Copierandfaxmachine. Extralandphoneline. Cuttingtools. Rawmaterials(Gold,Silver,Platinumandothermaterials). Anodizingequipment. Officespace. Salesforcehiring. Printmedia. Securityservices

ProjectedProfit: Wewillbechargingaprofitmarginof20%atthestartbutwecanincreasethatonthebasisof craftsmanshipandthedesignofthearticle.

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