Industry Profile:

Till the early 1990s, the average Indian bought jewelry for investment rather than for
adornment. Jewelers made of 1 8-karat gold were not favored as it was considered a poor
investment. Confidence in the local jeweler was the hallmark of the gold jewelry trade in India.
A jeweler or goldsmith in a local area had a fixed and loyal clientele. The buyer had implicit
faith in his jeweler. Additionally, the local jeweler catered to the local taste for traditional
jewelry. However, since the late 1990s, there was a shift in consumer tastes: women were
increasingly opting for fashionable and lightweight jewelry instead of traditional chunky jewelry.
There was a rise in demand for lightweight jewelry, especially from consumers in the 16 to 25
age group, who regarded jewelry as an accessory and not an investment. The new millennium
witnessed a definite change in consumer preferences.

Gold Industry:

Gold has long been considered the most desirable of precious metals, and its value has
been used as the standard for many currencies in history. Gold has been used as a symbol for
purity, value, royalty. One of the salient features about the gold is that a single gram of weight is
not at all wasted since its exploration. It has been rounding in different hands in one or the other
way.

Today, gold has emerged as an important mean for investments also. Volatile markets and
unstable economic conditions have also added to it. China is largest producer followed by South
Africa. But India is the largest consumer of gold, where it is largely used for jewelry together
with investment. India’s diversified religious customs and rituals have helped to the high demand
for gold.

Other uses:
 Salts and radio scopes of gold are used in pharmacology.
 Gold leaf, flakes or dust is used in some gourmet foodstuffs, sweets and drinks as
decorative ingredient.
 Gold is used in dentistry as crowns and permanent bridges.
 Gold threads are used in embroidery
 Gold has been used for electrical wiring in some high energy applications, atomic
experiment and other electrical equipments.
 Olympics, Nobel Prize and other competitions and honors award a gold medal to the
winner.

Factors influencing Gold Price:

 Today, like all investments and commodities, the price of gold is ultimately driven by
supply and demand, including hoarding and disposal. Unlike most other commodities, the
hoarding and disposal plays a much bigger role in affecting the price, because most of the
gold ever mined still exists and is potentially able to come on to the market for the right
price.
Bank failures

 When dollars were fully convertible into gold, both were regarded as money. However,
most people preferred to carry around paper banknotes rather than the somewhat heavier
and less divisible gold coins.
Low or negative real interest rates

 If the return on bonds, equities and real estate is not adequately compensating for risk and
inflation then the demand for gold and other alternative investments such as commodities
increases.
War, invasion, looting, crisis

 In times of national crisis, people fear that their assets may be seized and that the
currency may become worthless. They see gold as a solid asset which will always buy
food or transportation. Thus in times of great uncertainty, particularly when war is feared,
the demand for gold rises.

Overview of Gold Industry:

 India is the largest consumer of gold in the world followed by China and Japan.
 India is emerging as world’s largest trading centre of gold with a target of US$16 bn set
for 2010.
 India dominates the world’s cut and polished diamonds (CPD) market. In value terms, the
country accounts for approximately 55% of global polished diamond market and nearly
9% of the jewelry market.
 Surat contributes 90% of India’s total diamond exports.
 India’s domestics branded jewelry market is estimated at Rs 600-700 crores.
 There are 13 bullion importing bank in India.
 India’s gem and Jewelry Exports Promotion Council (GJEPC) is aiming at turning India
into an international diamond trading centre.
 Since India is already enjoying 80-85% of the world CPD market, scope for further
growth in diamond exports is limited. Hence, if India’s gems and jewelry sector is to
substantially increase exports, the best lies in the jeweler sub sector.
 India’s imports an average of 18000 bars a day, about 70% of the total demand and the
balance is being sourced to indigenous output and metal recycled from old jewelries.

The main reason why India has not made a dent in jeweler exports market is the
existence of government restrictions in their domestic jewelry industry in the pre-economic
liberalization era. If the gold jewelry exports are to be encouraged, it would be necessary to
allow bulk imports of gold which would have to be converted to jewelry and then exported.
Company Profile:

History:

Shri. Jos Alukkas is the man who climbed the ladder of success, step by step,
by his own ability and efforts. The time has proved that he can produce the best results
even in adversity. He is the chairman of biggest Jewelry Group, Jos Alukkas & Sons and
their branches are spread all over Kerala, besides India and abroad. Shri. Jos, during the
busy schedule of his routine work, finds time to involve in social, cultural and sports
activities as well. Way back the year 1964, his father Shri. Alukkas Varghese entered the
Gold business and their first shop was set up on High Road, Thrissur. Jos being the eldest
son came to manage the business and gradually he led the entire team to success and
prosperity.

Later, the shop got shifted to Municipal Office Road. It quickly gained
momentum and the business flourished than ever before. When all the brothers worked in
unison aiming at the progress of the company, the business could be expanded to abroad
also. At first, the showrooms were opened in various cities of Kerala. Then, gradually the
Group opened showrooms in Gulf Countries also. Under the inspiring leadership of Shri.
Jos Alukkas, the Alukkas Group owned more than 100 Jewellery showrooms all over the
world. Due to the unique system of working and improved method of planning, the
business paved the way for opening Gold Super Markets. Jos Alukkas was the pioneer in
This; because thereafter a number of people followed suit and opens Gold Super Markets
in Kerala. Alukkas Jewellery became a household name for people going for gold
purchases because the showrooms strictly insisted on selling pure gold in 916 carats to
the customers.

While the Alukkas Group was progressing in the business, the circumstances
warranted Shri Jos Alukkas to set up his own venture, at the helm of which was his sons,
besides himself. The new business Jos Alukkas & Sons had his sons namely Varghese,
Paul and John as MDs and Shri. Jos as Chairman. Thus the full control of the
management of Jos Alukkas Jewellery is vested with the above family.
The Group has gained ISO Certificate. Besides, their products are hallmarked with BIS, a
sign approved for its quality and performance by Govt. of India. The business has got
improved and as a result, Jos Alukkas & Sons expanded their business to the neighboring
states of Tamilnadu and Karnataka.
 With in a span of 5 years from its inception, the Group opened 13
showrooms. During the year 2010, they proposed to open new showrooms at Uduppi,
Mysore, Coimbathore, Shimoga, Chicmagloor, Dindigal, Hassan and Nagarcoil. Nearly
2000 persons are directly employed in showrooms, corporate office, refinery and
manufacturing units of Jos Alukkas & Sons. Besides, more than 5000 persons indirectly
get jobs working in ancillary units and connected lines.

Shri Jos Alukkas is a recipient of many awards for excellence in work and
ability in administration. The last award received by him is from TOMYAS, the one
instituted in memory of late Shri. K. P. Kesava Menon, former Chief Editor of
Mathrubhoomi and a renowned leader of Freedom Movement.

Company Vision and Mission:

VISION

To become a global brand by ornamenting the world.

MISSION

To improve and enrich lives everywhere by offering extraordinary lifestyle

solutions backed by incomparable value-additions, adhering to globally approved
processes and norms and creating a successful value- chain for our associates.
SWOT ANALYSIS FOR JOS ALUKKAS:

Strengths:

 Availability of abundance of cheap and skilled labor in India.

 Presence of excellent marketing network spread across the world.
 Capital
 Flexibility
 Innovative
 Modern Style
 Pricing
 Low cost of production
 Excellent & outstanding advertisement strategy

Weakness:

 Inventory carrying costs

 Gold Perceptive
 Brand Name

Opportunities:

 Growing demand in South Asian & Far East countries.

 Outlets
 The Rural Market
 Outsourcing of diamond jewelry
 Industry moving from a phase of consolidation

Threats:

 Infrastructure bottlenecks, absence of latest technology

 Unusual increase in the prices of gold and rough diamond.
 Heavy Competition
 Government Regulations
 Design Stealers
Background Notes:

In India Gold is one of the most important and precious thing to the people. They prefer it
as a first thing for buying. Because Gold can be the one, that can make people enjoy religiously
and spiritually. Gold can attract more women than men, is the part of the women life. Women
want to make sure that they can attract people and show richness in them through Gold rather
than anything else. Nowadays the requirement of Gold in India is going at a rapid pace. To
satisfy Indian customers, many of the large companies trying to start their business or invest on
gold. One of them is Jos Alukkas.

Jos Alukkas came here to India to deliver Gold with quality and variety with low price.
The company did very well, when they entered the Indian market. Now they are trying to do
business beyond the expectation by entering markets of city like Trichy. Peoples who live in
Trichy are rich, educated, poor, farmers, etc. People tend to buy Gold to show off their richness
and wealth, religious, affection, spirituality. When Jos Alukkas entered the Trichy market, they
weren’t having any tough competitors like Mangal & Mangal, Kumaran Thanga Maligai to make
them work hard to gain customers. But Jos Alukkas now has to face number of competitors,
because of the growing demand of Gold. Most of the competitors are selling Gold for a long
time. Now Jos Alukkas plan to attract the customers by their services. how they can improve
and retain the customers over competitors?
Their services to attract and retain customers:

Jos Alukkas and is now identified as a global brand with more than 20 branches spread in
India and abroad. Jos Alukkas is the first Jewelry group to be awarded with ISO recognition for
its purity and modus operandi. The showrooms of Jos Alukkas Jewelry are rich repositories of
916 BIS Hallmarked gold ornaments; internationally certified Belgium cut diamond ornaments
and platinum ornaments.

Huge stock, biggest collection, heavy discounts, seasonal mega offers and dedicated sales staff
all make Jos Alukkas Jewellery everyone’s first choice. Exclusive showroom for 100% BIS
hallmarked 916 gold collections. Items purchased by a customer will be delivered to them
through any of our branches upon request from the customer at no extra cost.  

Facilities over Competitors:

Life time guarantee for checkup, repair, polish and cleaning of gold and diamond ornaments
purchased. Design and Ideas of customers are developed and made according to their desire. Full
buyback guarantee for gold and diamond ornaments purchased from us. A vast array of modern
designer collections from India, Singapore, Turkey, Italy and Arabian Countries. Pure value for
money guaranteed while buying and selling. Lifelong guarantee and free maintenance for gold
ornaments. They are fully committed in selling 100% BIS Hallmarked products to enhance
customer satisfaction. German made gold check carat analyzer to check the purity of gold
while buying and selling gold. Exclusive collections of diamonds. IGI certificate of authenticity
and buy back guarantee for diamond ornaments International Gemological Institute’s certificate
for diamond ornaments. PGI certificate for platinum ornaments Availability of well trained
professional sales executives. Certain percentage of profit is reserved for charity. In Jos Alukkas
have the Separate sections respectively for Gold, Diamond, Platinum, Precious Stones, Pearl, and
Silver. This makes customers to have easy access in every section. It make customers to buy
Gold easily and save time.

Gold Section:

 Gold Section offers schemes to make poor people to buy gold and make them happy. The
schemes offered by Jos Alukkas are “Thanga Pudhayal”.

 Thanga Pudhayal is an Equally monthly installment savings scheme that will help people
to buy 22ct Gold jewelry. They are three types of groups Namely A,B and C. Each month
there will be a prize awarded for each group members. And they will be provided bonus
at the end of their term. Their have been many poor people benefited by this scheme and
the Credit goes to Jos Alukkas.
  The famous section that all the people in trichy would like to enter. This section have sub
sections namely necklace, Pendants, Rings, Bangles, Chains, Bracelet.

 Necklace section provides variety of necklace with low price and good quality. These
make customers to buy necklace that satisfy their need and expenditure. Jos Alukkas
manufacture by themselves to make less expenditure with great quality.
 Pendants Section provides God and other beautiful styles to attract customers. In Trichy,
people will buy Gold to satisfy their spiritual needs. God pendants will be a preferred one
for people, who is looking to gift it or donate it to temples.
 Rings section: A wedding ring or  is a metal ring indicating the wearer is married.
Depending on the local culture, it is worn on the base of the left ring finger (see post-
wedding customs below). The custom of wearing such a ring has spread widely. Exotic
rings, Rangoli rings, Birth-Stone rings are available only in Jos Alukkas
 Bracelet  is an article of jewelry which is worn around the wrist. Customers would like to
gift it for bride or bridegroom for their marriage celebration.
 Chains in jos alukkas Jewelers combines this simple expression of beauty with the
highest quality 22 karat gold. The result is an article of jewelry useful in both formal and
casual occasions. From intricate designs to more uncomplicated presentations, these 22
karat gold chains are the perfect accessory.
 Bangles in our collection include gold bangles with intricate patterns and enamel work,
gold bangles with stones, hand crafted bangles with rubies, emarald, bangles with
extensive filigree work, floral engraved gold bangles, twist bangle, designer bangles and
more.

Platinum :

 
Platinum Guild International (P G I)
PGI stands for platinum guild international. They are a non-profit multinational organization
that promotes platinum jewelry.

Quality Assurance
The jewelry store should be authorized by the Platinum Guild International to sell Platinum
jewelry. Every piece of jewelry is stamped with the Pt logo and a unique identification
number (UIN). A quality assurance card also accompanies the piece.
Silver

Silver is one of the brightest and shiniest metals in jewelry. In jos alukkas people can find
silver chains, rings, necklaces, and handcrafted silver jewelry. Trendy collection of Silver
Ornaments, Silver accessories and silver gift items.

Precious Stones

Gems are nature’s storehouse of energy. They radiate cosmic rays, which have the ability
to combat negative and destructive vibrations of planets that are unfavorable in a person’s
horoscope, and increase the flow of positive and constructive vibrations by strengthening
favorable planets, which might otherwise be weak in the horoscope. The power and
energy of birthstones are potent enough to increase one’s mental abilities and psychic
powers. Thus bringing along immense good luck and fortune.  

They eradicate problems and remove hurdles in all major areas like marriage, career,
business, education, wealth etc. Birthstones can cure even the most dangerous diseases,
which might otherwise be incurable medically.  Birthstones are like high-potency
medicines, having magical healing and curative powers to not only cure but also ward off
chronic diseases. Jos Alukkas has more concentrate on people’s religious and spiritual
beliefs and thoughts. In this section Jos Alukkas show their varieties in precious stones
and offer them in a good price.

Diamond:

Today, the ultimate consumers are in confusion when it comes to buying

something.  It is because they are very discerning and also because the market is flooded
with choice. What ever be the case, no one can deny his or her liking for good products. 
It is same in the case of diamonds also. But how to know which is a good diamond!
Frankly, it is hard for the layman to know the genuineness of the stone. For instance, a
stone, which many would believe to be a diamond, might not be one at all. 

Sometimes, even a trained eye can be deceived at one glance. But with the help of this
text and with a little practical help from us (when you visit our showroom), we are sure
you will be enlightened and keen to know more about diamond. For centuries, the
diamond has symbolized power, mystique, beauty and love. No other gemstone possesses
as many unique and desirable qualities as a diamond. The epitome of desire, diamonds
are said to be frozen pieces of time, gifts from the earth’s interior.
Services To Customers:

To show their quality and services, Jos Alukkas offers some pamphlets or some tips to choose
correct jewel for the customers who are coming to buy jewelry.

Pamphlets like,

 Know your diamond

 Take care of your diamond jewelry

 Some buying tips

Know Your Diamond:

Cut
The cut is determined not by the shape of the diamond, but how the facets are arranged. The
way a diamond is cut and polished is vital. The better it has been cut, the greater will be its
brilliance, sparkle and fire. When a diamond is cut to good proportions light is internally
reflected from one facet to another and then dispersed through the crown or top of the
diamond. If the cut is too deep or too shallow, the light can escape through the bottom
making the stone dull. So a well-cut diamond is comprised of facets with the correct angles,
which are perfectly placed to maximize the diamond’s brilliance.

Color

Most diamonds look colorless but there are many subtle shade differences and the closer a
diamond is to having no color, the more valuable it becomes.  Diamonds with no hint of
color at all, are very  rare and the grading of color in diamond goes from pure white to
yellow tint or light colors

Clarity

No two diamonds, are the same, every diamond is unique. Most diamonds contain tiny
characteristics called ‘inclusions’. These inclusions serve to identify the origin of the
diamond against the synthetic. These inclusions are of varying degrees and these have been
graded based on their size, color and position by the GIA (Gemological Institute of
America). The fewer the inclusions, the rarer it is and more the light it will reflect making it
more valuable.
Carat

The weight of all gemstones is measured in carats. One carat is equal to 200 mg. or one
carat is divided into 100 cents or points. The word ‘carat’ is derived from the carob seed.
The pods of the carob contain tiny seeds, which are remarkably consistent in
weight. Though the carat determining is the easiest in the 4 C’s (Cut, Clarity, Color and
Carat), it is one of the most important aspects in fixing the value of a diamond. Having
explained the 4 C’s, it is still very hard for a layman to understand the quality of the
diamond. 

Take Care of your Diamond Jewelry:

 Clean your diamond jewelry with toothpaste and it will regain radiance.

 Use soft brush to dislodge dust or dirt.

 Do not jumble many diamond pieces together or with other jewelry because it can scratch
and get scratched as well.

 Avoid touching the clean diamond with your fingers.

 Keep your diamond jewelry from chlorine bleach or other household chemicals.  It would
not hurt your diamonds, but it can discolor the mounting  (the metal part ).

Some Buying Tips:

 Always check whether the diamonds in the ornaments are shining to the naked eye.

 Also, try to observe the diamonds through the eyeglass (magnifying glass).  Ask for one
from the jeweler.

 See the finish of the jewelry.

 Since there are so many hassles, the customer should consider a jeweler who has
knowledge and who is generous enough to explain about diamonds. 

 You should also look for good designs and also the price. 
Discussion Analysis:

The preference of the consumer towards the products and services of jos alukkas has been
analyzed by collecting premises information from the customers of jos alukkas at their premises
150 customers are meet for fortnight in the premises of the jos alukkas trichy and their
preferences analysis on the basis of the variables such as quality, price , variety, gifts, discounts,
services, low making charges, showrooms etc. The findings are depicted in the following
paragraph,

Of the total respondents, 70% are mainly from upper class and upper middle class
families. This is so because this income group can afford for the ornaments which are
specially designed and budgeted for them. The people belonging to this income class we
always prefer to have variety of minimum weights. On Jos Alukkas concern which satisfy
the needs of the people financially and update themselves to the current fashion existing
in gold markets. The factor influence in peoples purchase behavior on Jos Alukkas is,
15.33% of people choose for company image, 41.33% of people choose for quality,
24.67% of people choose for Advertisement and remaining percentage will be for
selection available. The company offered good quality product, variety design which is
suitable to the customers. That made 63% of the customers prefer gold ornaments, 18%
of the customers prefer Diamond, 11% of the customers prefer platinum in Jos Alukkas
They are targeting middle class and upper middle class customers for gold and they focus
upper class people for diamond cause of high price. At most one third of the customers
prefer other products. Jos Alukkas attract the low class people by providing gold
ornaments in least grams like half gram and one gram within the purchasing capacity of
the customers. Even they have readymade gold wedding chain in least grams such as in
half or one gram for the convenience for people. These ornaments which have stones
works which is used to attract teen age people. Jos Alukkas also provide loans for people
who cannot have bulk amount to purchase the ornaments; this made Jos Alukkas to
attract low class people. The making charges of Jos Alukkas is very low than their
competitors. It is possible by them to reduce the making charges because they have more
branches and they also taken customers expectations in mind. So, 61% of the customers
are satisfied with the making charges of Jos Alukkas. Jos Alukkas use media channels to
create strong brand image in the minds of the customers. They create awareness about the
Jos Alukkas by providing pamphlets, broachers’ about the schemes and offers . They
conduct trade shows in many rural areas to make awareness about their schemes and
offers they provide. It helps the people to know about various schemes and offers of Jos
Alukkas clearly. Of the total respondents, 33% of the customers through Television and
18% of the customers through newspaper advertisement came to know about Jos Alukkas
and others through friends and relatives. The customers got immediate response for their
complaints registered. This happen only because of the salesman in Jos Alukkas.
Salesman acts as a bridge between customers and Jos Alukkas. They clearly explain the
schemes and offers of Jos Alukkas for the customers, it stimulate the people to buy more
products in Jos Alukkas. Of the total respondents 92.67% of respondents said showroom
facility of Jos Alukkas is good. Jos Alukkas maintain good relationship with their
salesman by giving incentives and bonus, it stimulate the salesman to work hard for Jos
Alukkas. The customers are rated salesman responsiveness of Jos Alukkas is Excellent.
The good customer service makes the existing customers to insist their well wishers to
purchase from Jos Alukkas.
Conclusion:

Jos Alukkas is a World famous Gold Industry. They need to concentrate on how
to attract remote and village people. Poor customers tend to buy gold with minimum
money. Jos Alukkas need to produce Gold with lesser prices and less weight. And they
need to provide better schemes to attract people whom don’t have any interest in buying
Gold. They can pick better Ambassadors to enhance customer attraction of particular age
group. This will make them attract all kinds of people from Top to Bottom. The
Customers will buy Gold for every occasion, they will enjoy. This make Jos Alukkas
Gold business grow and grow in High Rate.