STP & MARKETING MIX:

The Gems and Jewellery sector is witnessing changes in consumer preferences due to
adoption of western lifestyle. Consumers are demanding new designs and varieties in
jewellery, and branded jewellers are able to fulfil their changing demands better than the local
unorganised players. Moreover, increase in per capita income has led to an increase in sales
of jewellery, as jewellery is a status symbol in India.
Some of the key investments in this industry are listed below.
 An international diamond exchange will be set up in Surat by October 2020 at a cost
of Rs 2,400 crore (US$ 372million).
 Companies such as PC Jewellers, PNG Jewellers, Popley and Sons, are planning to
introduce a virtual-reality (VR) experience for their customers. The customer will
have to wear a VR headset, through which they can select any jewellery, see the
jewellery from different angles and zoom on it to view intricate designs.
Market Segmentation:
A. Jewellery Segmentation:

 Gold and Jewellery- This is crafted exclusively out of gold and includes bridal and
traditional jewellery.
 Jewellery from other metals- Metals other than gold are used for this segment like
silver and platinum.
 Combination Jewellery- This type of jewellery consists of precious and non-precious
stones.
 Fashion Jewellery- This type of jewellery is extensively used for fashion industries.
 Accessories- This type of jewellery is worn with different fashion trends.
 14-16 carat gold jewellery- This refers to the cheaper form of gold used for traditional
wear.
 1. DEMOGRAPHIC SEGMENTATION:

 For gender segmentation, it refers to male and female. Male segmentation entails
bracelet, ring etc and female segmentation require earring, necklace, bangles etc.
 For family cycle segmentation, engagements, weddings and anniversary celebrations
are taken into consideration.
2. BEHAVIOURAL SEGMANTATION
Gems and Jewelry brands portray purchase occasions based on festivals. Jewelry can
be classified as everyday wear, special occasion wear, bridal wear and other variants.

3. PSYCHOGRAPHIC SEGMENTATION
They segment their jewelry based on the current mindset, gender and trends of the
society. Like with modern woman is often associated with increased independence
and confidence, such customers are often targeted by companies looking to launch
new products
4. GEOGRAPHIC SEGMENTATION
Tier 1 and Tier 2 cities like Delhi, Chennai and Mumbai are the hotspots but slowly
some other tier-2 districts are also increasingly being targeted because of new
customers whose purchasing power has increased due to growing economy.

TARGETING-
The targeting strategy used by this industry is multi segment targeting strategy. There are
several products available at different price ranges. There are well defined specific groups of
buyers depending on the price range as well as design. Separate marketing mix is used for
these products. For example, the bridal collection is relatively more expensive and is meant
for women of 20-30 whereas the Dhanteras collection is lesser priced and is meant for a
wider age group. Among the several ads there is a specific ad which is released before Diwali
by almost all companies. As Indians purchase jewellery during festivals, this ad is
particularly meant for Diwali purchase. One of the best examples is Tanishq, which targets its
audience based on independent women and progressive women with disposable income and
thereby creates the consumer base. Some more strategies include-
• Differentiated marketing for each customer segment and customized marketing to
cater to individual customer segments.
• Have target strategies for women who are modern and no age group. For men,
industry targets in age group of 15-40

POSITIONING-
Gems and jewellery industry today is increasing looking to improve its positioning segment
so as to build upon its value proposition. An example is Nakshatra, which positions itself as
lucky jewellery. The taglines are ‘divine luck’ and ‘glow divine’ which states that the
jewellery brings luck to the wearer. Katrina Kaif (face of the product) is called the ‘goddess
of luck’ implying the same positioning. Since Katrina joined the industry, most of her movies
has been successful and she has been viewed as a lucky mascot. Thus, more strategies which
sometimes interweave include-
• Positioning is based on trust, purity, luxury and superiority of product.
• Image positioning is done by abiding by quality certificates and standard practices.
 Endorsements by mega actresses to show regality of the brand. The advertisements try
to reinforce this trend aggressively by showcasing popular celebrities like Aishwarya
Rai and Katrina Kaif wearing diamond jewellery in wedding costumes as well as
gowns implying other grand occasions. Another example is Tanishq, which uses
tagline “Khushiyon ki Chamak – Sparkling Happiness!” so as to link happiness as a
value proposition brand to connect with the gold a customer buys.
•
• Differentiation strategies based on what sort of target audience they are going for.
Eg:Gitanjali 0.03 carat heart shaped diamond

MARKETING MIX-
1. PRODUCT
Jewelry can be segmented based on –
 Gold jewelry
 Combination jewelry
 Fashion jewelry
 Silver jewelry
 Diamond jewelry
 Gemstones jewelry
• Most of product differentiation occurs based on ascetic and tailor made jewelry.
2. PRICE

• Pricing varies daily, weekly or fortnight depending on price revision by seller.

• Cost of combination jewelry=(gold price per gm)*(weight in gm) + making charges+
wastage charges+ cost of stones + gst
• Cost of gold=(gold price per gm)*(weight in gm) + making charges+ wastage charges
+ GST
• % of making charges- Machine Made Jewelry(up to 6-8% making charges) Straight
Jewelry(2-4%) and handcrafted jewelry(Maximum Making charges)

3. PLACE
  Jewellers always have quite huge stores with a lot of variety, to meet the demand of
different population in different places.
 They have followed more of a region centric approach : more the demand of a product
in a particular region, the more the supply and the more the variety and most of tier 1
and tier-2 cities are targeted. also, some regional bias exists like in south and east

4. PROMOTION
Most of them have region centric approach , and they have different ambassadors for
different states, as for Mumbai, Tamil Nadu etc.
Social media presence is comparatively lower but online marketing is taking a lot of
interest for shareholders.
Seasonal promotions are extremely crucial. They occur mostly on the form of
festivities and also the seasons upon which several family life cycles revolve around/

BCG MATRIX-

The Boston Consulting group’s product portfolio matrix (BCG matrix) is designed to help
with long-term strategic planning, to help a business consider growth opportunities by
reviewing its portfolio of products to decide where to invest, to discontinue or develop
products. It's also known as the Growth Share Matrix.

The Matrix is divided into 4 quadrants based on an analysis of market growth and relative
market share, as shown in the diagram below.
 1. Dogs: These are products with low growth or market share.

 2. Question marks or Problem Child: Products in high growth markets with low
market share.

 3. Stars: Products in high growth markets with high market share.

 4. Cash cows: Products in low growth markets with high market share

GEMS AND JEWELLERY BCG MATRIX-

ANSOFF MATRIX-

Ansoff matrix presents the products and markets available to an organization

(markets are customers and products to be sold to those customers). The Ansoff
matrix entails four possible product/market combinations:

1. Market Penetration:

Market penetration occurs when a company penetrates a market with its current
products. It is important to note that the market penetration strategy begins with the
existing customers of the organization.

2. Product Development:

Product development occurs when a company develops new products to the same
market.

3. Market development:

When a company follows the market development strategy, it moves beyond its
immediate customer base towards attracting new customers for its existing
products.

4. Diversification:
When a company diversifies, it essentially moves out of its current products and
markets into new areas.