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Executive Summery

Executive Summery

Society is a diversified in all aspects. We see this among consumers, marketers, producers and even among consumer behavior from theoretical aspects. The study of consumer behavior enables marketer to predict a consumer behavior in the market; it also produces under standing of the role that consumption has in the lives of individuals. Consumer behavior is defined as a behavior that consumers display while searching for purchase, using, evaluation and disposal of products, services and ideas that they to satisfy their needs. The study o f consumer behavior is concerned not only with what consumers buy, but also with what they buy it, when, from where and how they buy it and how often they buy it. It is concerned with learning the specific meanings that products hold for consumers. Consumer research takes place at every phase of the consumption process; before the purchase, during the purchase and after purchases. Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy. It attempts to understand the buyer decision processes/buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.
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What we buy, how we buy, where and when we buy, in how much quantity we buy depends on our perception, self concept, social and cultural background and our age and family cycle, our attitudes, beliefs, values motivation, personality, social class and many other factors that are both internal and external to us. Consumer behavior is interdisciplinary; i.e. it is based on concepts and theories about people that have been developed by scientist in such diverse disciplines as psychology, sociology, social psychology, cultural anthropology and economics. Consumer research is the methodology used to study consumer behavior. The study of consumer behavior is the study of ho individuals make decision to spend their available resources on consumption elated items. It includes the study of what, why, when and form where they buy etc. Consumer behavior is a relatively new field of study emerged in late 1960s with no history or body of research of its own unlike branches of economics. Many early theories concerning consumer behavior were based on economic theory on the notion that individuals act to maximize their benefits in the purchase of goods and services. There are number of reasons why the study of consumer behavior developed as a separate marketing discipline. As sum as the marketing researchers began to study the buying behavior of customers, they realized that, despite a something me too approach to fashions, many consumer rebelled at using the identical products everyone else used. The primary purpose or studying as part of a marketing curriculum is to understand why and how consumers make their purchase decisions. These insights enable marketer to design more effective marketing strategies.
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Consumer behavior has become an integral part of strategic market planning. The belief that ethics and responsibility should also be integral components of every marketing concept, which calls on marketer to fulfill the needs of their target market in ways that improve society as a whole.

Introduction

Introduction
Till the early 1990s, the average Indian bought jewellery for investment rather than for adornment. Jewellery made of 18-karat gold was not favored as it was considered a poor investment. Branded jewellery also gained acceptance forcing traditional jewelers to go in for branding. Given the opportunities the branded jewellery market offered; the number of gold retailers in the country increased sharply. Branded players such as Tanishq, Oyzterbay, Kisna and Carbon opened outlets in various parts of the country. Traditional jewelers also began to bring out lightweight jewellery, and some of them even launched their in-house brands. However, the share of branded jewellery in the total jewellery market was still small (about Rs. 10 billion of the Rs. 400 billion per annum jewellery market in 2002), though growing at a pace of 20 to 30 percent annually. The branded jewellery segment occupied only a small share of the total jewellery market because of the mindset of the average Indian buyer who still regarded jewellery as an investment. Moreover, consumers trusted only their family jewelers when buying jewellery. Consequently, the branded jewellery players tried to change the mindset of the people and woo customers with attractive designs at affordable prices. However branded jewellery players will continue to face lot of competition from local jewelers. In order to gain market share, they will have to come up with designs that
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customers want and win the trust and confidence of consumers by hallmarking and demonstrating the purity of the gold used by them. To compete with traditional players, branded players must also find some way to differentiate themselves. While the success of a particular brand will depend on differentiation, affordability and quality will be a key element in sustaining a brand.

In addition, branded players require focused advertising and astute salesmanship to compete with traditional jewelers. Besides the major brands- Tanishq, Carbon, Oyzterbay, Kisna and Trendsmith - several regional players have opened branches to leverage the trust and reputation that they have built up over the years.

Objective of study

Objective of study

The objective to study the A comparative study on the consumers preference towards branded jewellery over non branded jewellery in Sitapur. is to find out

1) The consumers buying preferences 2) The reach of branded jewelers 3) Brand awareness of various brands in the jewelers market

Significance of the study

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Significance of the study


The gems and jewellery industry occupies an important position in the Indian economy and is one of the fastest growing industries in the country. Hence the research conducted would help me 1) Understand the consumers preference while purchasing jewellery 2) How much impact does a brand have on their purchase decision 3) Does price play an important role in guiding their purchase decision

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Justification of the study

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Justification of the study The previous research done on branded and non branded jewellery markets are 1) Indian Gems and Jewellery Market - Future Prospects to 2011 2) The impact of recession on the jewellery industry 3) The growth of the Branded jewellery market in India No study has been done to find out the preference of consumers between branded and non branded jewelers. The study would also help to find out the consumer preference and their buying behavior towards branded and non branded jewelers, this would help both the retailers to know what are the consumer preference and what strategies should they adapt to grab the market.

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Company Profile

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.Tanishq Parent Company Category Sector Tagline/ Slogan USP STP Segment Target Group Women who love jewelry Urban women premium and upper class Tanishq diamonds embark the aspiration of emerging Indian women who uses tradition rather than being used by it Tata Group Jeweler and Diamonds Lifestyle and Retail Pure Jewellery Pure Joy; Pure India Pure Tanishq One of the largest jewelry brands in India

Positioning SWOT Analysis Strength

1. One of the most trusted jewelry brands in India 2. Strong backing of the Titan Industries of the Tata Group 3. Excellent branding and advertising through TVCs and print ad campaigns 4. Association with celebrities as brand ambassadors to reach out to the customers 5. Apart from Indian jewelry in wedding and diamond collections, also offers simplistic and low-priced jewelry for
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daily wear 6. Has its presence in over 100 Indian cities 1. Limited global presence as compared to a few other international brands 2. Tough competition from other jewelry brands means limited scope of growth 1. Global penetration in other countries 2. Acquisition of smaller businesses to increase brand position and reach 3. Tie-ups with corporate and business partners 1. Economic fluctuations mean people decrease their spending 2. Govt policies, taxes etc also affect the premium jewellery segment 3. Trends change quickly, hence innovations and R&D are investments

Weakness

Opportunity

Threats Competition

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S.P JEWELLERS

Founded as a single company cutting and polishing Gold ornaments for the jewellery trade at Sitapur, in 1995, the S.P.Jewellers became, many times over, a pioneer among major Gold ornaments and jewellery houses. First major Gold ornaments and jewellery house to be launched and run by modern entrepreneurs rather than dynastic jewellers. An authorised DTC Sightholder and loyal customer and a modern multinational business run on innovative insights. At the forefront of the global breakthrough in Gold ornaments jewellery design and production brought about by Indias ability to cut Gold ornamentss considered unworkable for jewellery till then. Has the distinction of producing the worlds smallest heart shaped Gold ornaments (0.03 carat), and developing some 25 patented facet patterns. Besides changing the face of manufacture, broke the mould of traditional jewellery marketing: it abandoned jewellery trade convention by launching multiple brands for multiple markets and price segments. Business model now integrates all operations, from rough Gold ornaments sourcing,
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cutting, polishing and distribution, and jewellery manufacture, to jewellery branding and retail, as well as global lifestyle brands, in India and abroad. Offers jewellery in diverse styles: traditional, international classic, and casual. For consumers of all age groups, tastes and budgets. With a growing hamper of brands, some already global, and each targeted to specific consumer and market segments.

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The emergence of branded gold jewellery


In the late 1990s, the Indian jewellery market witnessed a shift in consumer perceptions of jewellery. Instead of being regarded as only an investment option, jewellery was being prized for its aesthetic appeal. In other words, the focus seemed to have shifted from content to design. Trendy, affordable and lightweight jewellery soon gained familiarity. Branded jewellery also gained acceptance forcing traditional jewelers to go in for branding. Given the opportunities the branded jewellery market offered; the number of gold retailers in the country increased sharply. Branded players such as Tanishq, Oyzterbay, Kisna and Carbon opened outlets in various parts of the country. Traditional jewelers also began to bring out lightweight jewellery, and some of them even launched their in-house brands. However, the share of branded jewellery in the total jewellery market was still small (about Rs. 10 billion of the Rs. 400 billion per annum jewellery market in 2002), though growing at a pace of 20 to 30 percent annually The branded jewellery segment occupied only a small share of the total jewellery market because of the mindset of the average Indian buyer who still regarded jewellery as an investment. Moreover, consumers trusted only their family jewelers when buying

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jewellery. Consequently, the branded jewellery players tried to change the mindset of the people and woo customers with attractive designs at affordable prices.

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Gold Jewellery Market in India


Before the liberalization of the Indian economy in 1991, only the Minerals and Metals Trading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to import gold. The abolition of the Gold Control Act in 1992, allowed large export houses to import gold freely Exporters in export processing zones were allowed to sell 10 percent of their produce in the domestic market. In 1993, gold and Gold ornaments mining were opened up for private investors and foreign investors were allowed to own half the equity in mining ventures. In 1997, overseas banks and bullion suppliers were also allowed to import gold into India. These measures led to the entry of foreign players like DeBeers, Tiffany and Cartiers into the Indian market. In the 1990s, the number of retail jewellery outlets in India increased greatly due to the abolition of the Gold Control Act. This led to a highly fragmented and unorganized jewellery market with an estimated 100,000 workshops supplying over 350,000 retailers, mostly family-owned, single shop operations. In 2001, India had the highest demand for gold in the world; 855 tons were consumed a year, 95% of which was used for jewellery. The bulk of the jewellery purchased in India was designed in the traditional Indian style. Jewellery was fabricated mainly in 18, 22 and 24-carat gold. As Hallmarking was not very common in India, under-carat age was prevalent. According to a survey done by the Bureau of Indian Standards (BIS), most gold jewellery advertised in India as 22-carat was

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of a lesser quality. Over 80% of the jewelers sold gold jewellery ranging from 13.5 carats to 18 carats as 22-carat gold jewellery. The late 1990s saw a number of branded jewellery players entering the Indian market. Titan sold gold jewellery under the brand name Tanishq, while S.P.Jewellers Jewels, a Sitapur-based jewellery exporter, sold 18-carat gold jewellery under the brand name Kisna. S.P.Jewellers Jewels also started selling 24-carat gold jewellery in association with a Thai company, Pranda. Su-Raj (India) Ltd. launched its collection of Gold ornaments and 22 -carat gold jewellery in 1997. The Sitapur-based group, Beautiful, which marketed the Tiffany range of products in India, launched its own range of studded 18-carat jewellery, Dagina. Cartiers entered India in 1997 in a franchise agreement with Ravissant. Other players who entered the Indian branded gold jewellery market during the 1990s and 2000-01 included Intergold Gem Ltd., Oyzterbay, Carbon and Tribhovandas Bhimji Zaveri (TBZ). Kisna: In 1994, Kisna Jewellery was established as a distinct brand by S.P.Jewellers Jewels, soon after the abolition of the Gold Control Act by the Indian government. Kisna offered a wide range of 18-carat plain gold and Gold ornaments-studded jewellery, designed for the contemporary Indian woman. The designs combined both the Indian and western styles and motifs. With sales of Rs.0.14 billion for the year 2000-01, Kisna had a 0.03 percent share of the 400 billion jewellery market in India and a 1.4 percent share of the branded jewellery market. Tanishq: In 1984, Questar Investments Limited (a Tata group company) and the Tamil Nadu Industrial Development Corporation Limited (TIDCO) jointly promoted Titan
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Watches Limited (Titan). Initially involved in the watches and clocks business, Titan later ventured into the jewellery businesses. In 1995, Titan changed its name from 'Titan Watches Ltd.' to 'Titan Industries Ltd.' in order to change its image from that of a watch manufacturer to that of a fashion accessories manufacturer. In the same year, it also started its jewellery division under the Tanishq brand. Among the branded jewellery players in the Indian market, Tanishq is considered to be a trendsetter. When it was launched in 1995, Tanishq began with 18-carat jewellery. Realizing that such jewellery did not sell well in the domestic market, the 18-carat jewellery range was expanded to include 22 and 24-carat ornaments as well. When Tanishq was launched, it sold most of its products through multibrand stores. In 1998, Tanishq decided to set up its own chain of retail showrooms to create a distinctive brand image. By 2002, Tanishq retailed its jewellery through 53 exclusive stores across 41 cities. To meet increasing demand, Tanishq planned to open 70 stores by the end of 2003 and offer a range of 'wearable' products with prices starting at Rs. 400. With sales of Rs. 2.66 billion in 2000-01, Tanishq had a 0.66 percent share of the total jewellery market and a 27 percent share of the branded jewellery market. 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.
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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 2005. Oyzterbay: Oyzterbay was founded by Vasant Nangia and his team 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: Sitapur-based Tribhovandas Bhimji Zaveri (TBZ), which had been in the jewellery business since 1864, saw tremendous scope in the branded segment and opened its new concept store 'Trendsmith' in Sitapur 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 Sitapur and Delhi.

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BRANDED GOLD JEWELLERY MARKET (MAJOR PLAYERS)


Brand Tanishq Oyzterbay Kisna Carbon Market share (2001-11) in %) 27.0 1.7 1.4 1.4

Source: ICFAI Centre for Management Research.

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Gold Jewellery Becomes Fashion Accessory

Till the early 1990s, the average Indian bought jewellery for investment rather than for adornment. Jewellery made of 18-karat gold was not favored as it was considered a poor investment. Confidence in the local jeweler was the hallmark of the gold jewellery 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 jewellery. However, since the late 1990s, there was a shift in consumer tastes: women were increasingly opting for fashionable and lightweight jewellery instead of traditional chunky jewellery. There was a rise in demand for lightweight jewellery, especially from consumers in the 16 to 25 age group, who regarded jewellery as an accessory and not an investment. The new millennium witnessed a definite change in consumer preferences. According to Samrat Zaveri, CEO of Trendsmith, "Research shows that the Indian jewellery sector is in the transition phase with consumers' desire for possession of jewellery for its aesthetic appeal and not as a form of investment."

In October 2002, Trendsmith conducted a survey to understand the shifting needs, motivations and aspirations of consumers in the jewellery market, and to identify new trends and opportunities. The research study arrived at the following conclusions:

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The Indian market was witnessing an accelerated shift from viewing jewellery as an investment to regarding it as aesthetically appealing ornaments. The focus had shifted from content to design. The younger generation was looking at trendy, contemporary jewellery and clearly avoiding heavy, traditional gold jewellery. The consumer wanted a wider selection at a single convenient location and expected an international shopping experience. The Indian consumer was willing to experiment with new designs. The late 1990s and early 2000s, with the increase in the number of designers from design schools such as the National Institute of Fashion Technology (NIFT), a wide range of new designs.

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Strategies for Wooing Customers Tanishq

In the late 1990s, players in the branded gold jewellery market formulated strategies for wooing customers. According to Jacob Kurian (Kurian), Chief Operating Officer of Tanishq, the challenges were many. As the jewellery market was highly fragmented, lacked branding, and allowed many unethical practices to flourish, Tanishq worked hard on a two-pronged brand-building strategy: cultivate trust by educating customers about the unethical practices in the business and change the perception of jewellery as a highpriced purchase. Said Kurian, "We are changing the attitudes of customers from blind trust to informed trust." To increase its market share, Tanishq formulated a strategy for luring people away from traditional neighborhood jewelers. Tanishq's strategy was to create differentiation and build trust. According to Kurian, the first part of the strategy was "to provide a point of differentiation in a highly commoditized category - which is the whole point of branding." The second part of the strategy was to project Tanishq as an unimpeachable mark of trust. According to Kurian, "If differentiation plays the role of primary attraction, trust takes care of lifelong loyalty.

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One way to create differentiation was through design. The emphasis had to be on design because local jewelers could offer to design any pattern according to the customer's specifications. For a national brand a generic design concept with regional variations had to be evolved. For this, Tanishq set up a seven member in-house design team and also outsourced designs from freelance designers. The designers travelled the length and breadth of the country to get feedback on Tanishq's designs and learn about customer preferences. On the basis of this feedback, each showroom could select the designs it would carry. Source:http://www.icmrindia.org/free%20resources/casestudies/branded-goldjewellery1.htm

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Brand appeal
Branded jewellery has found a niche for itself in the tough Indian market, and its increasing growth rates show that before long it will corner a significant share of the jewellery market. WITH the retail industry in India burgeoning, several companies have made inroads into the traditional jewellery industry, selling the product that was never really "marketed" in "brand" new ways. So much so that branded jewellery is the new mantra in the market, having rapidly acquired a niche over the past few years. Some of the companies have even cleverly played on Indian customs and tradition to advertise and establish their brands. Jewellery is now marketed for every occasion; even Valentine's Day calls for "a special something [Gold ornaments] for a special someone". In spite of pessimism about the marketability of branded jewellery in a country rooted in buying ornaments from the traditional goldsmith, 30 brands were launched in 2004. However, this does not take away from the fact that India is a tough market. According to Mehul Choksi of the D'Damas and S.P.Jewellers Group, branded jewellery has witnessed more than 50 per cent growth in the last three years. The Gold ornaments branded jewellery, he says, is especially impressive with the segment witnessing a 20 per cent rise annually as against 10 per cent a decade ago. Although branded jewellery accounts for less than 10 per cent of the Rs.40,000-crore jewellery market, a study has concluded that it is growing in popularity at a tremendous pace of 20-30 per cent annually. Such is the potential of this industry that the consulting firm McKinsey estimates the branded jewellery market in India to grow at the rate of 40 per cent per annum to touch Rs.10,000 crores by 2010.
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Big drivers of this kind of jewellery are the numerous malls opening across the country with the emergence of an affluent class following the successful growth of the new economy companies. In the past decade, the country has seen a section of the population gaining exposure to designer wear, fashion accessories and globally branded products. "Why not have accesses to them?" asks Rima Khan, a brand executive. "Of course jewellery is harder to brand but it has done well given the tough competition," she says. One of the reasons branded jewellery is doing well is that now anyone can walk into a mall, window shop and decides at their own what they would like to buy. The entire culture of shopping has changed with attentive and helpful attendants and well-displayed products. "You no longer have the sales staff who look at you and decide whether you are worth serving or not. Everyone is a potential customer in the new market," says Rima Khan. Yet the most important part of branded jewellery is that you can get a piece of jewellery with a Gold ornaments for as little as Rs.1,500. And as branded is equated with quality, you are assured of a good product. "Suddenly jewellery has become accessible and affordable for all income brackets." The shift was visible in 2004 when more than 30 players entered the market. Today there are more than 50 brands, endorsed by models, film actors, sports celebrities and other well-known faces. Some designs of these brands are so popular that local jewelers have begun to copy them. "While it is a compliment to the industry that people like the product, it could also affect the company because the cost may be lower," says Rima Khan.
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The biggest challenge perhaps is in educating the consumer. Consumers need to understand the four Cs - Cut, Carat, Color and Clarity. Companies that brand their products place a lot of emphasis on educating and therefore helping the customer make his purchase. "Buying jewellery is a very personal thing and we need to understand what we are buying," says Seema Thakur, an attendant in a jewellery store at a mall in Sitapur. "We have an average of 50 people on a week day and at least 100 on a weekend who walk in and look around the shop. If you make the product look special, for instance, appeal to a young gentleman to buy it for a loved one, he is often interested." And the big selling point is: "If you can spend Rs.1,000 on two music CDs, why not spend for that special person in your life." The branded jewellery industry is still in its infancy, but increasing growth rates show that in a short time it will corner a significant chunk of the market. Perhaps the best compliment to the branded segment is that old jewellery showrooms have also begun to design jewellery lines under a brand name.

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Indian Customers Showing Interest in Branded Jewellery


As per our recently published research report Indian Gems and Jewellery Market Future Prospects to 2011, gems and jewellery market in India posses tremendous potential for future growth since it has an added advantage of low production cost and highly skilled labor that separate it from its competitors. It is projected that the overall gems and jewellery market will grow at a CAGR of around 14% during 2009-2012. India possesses worlds most competitive gems and jewellery market due to its low cost of production and availability of skilled labor. As per our new research report Indian Gems and Jewellery Market - Future Prospects to 2011, highly skilled and low cost manpower, along with strong government support in the form of incentives and establishment of SEZs, has been the major driver for the Indian gems and jewellery market. The market also plays a vital role in the Indian economy as it is a leading foreign exchange earner and accounts for more than 12% of Indias total exports. Currently the Indian market remains highly fragmented, but is rapidly transforming into an organized sector. Currently, the industry is facing a slowdown due to global economic turmoil. But due to various government efforts and incentives coupled with private sector initiatives, the Indian gems and jewellery sector is expected to grow at a CAGR of around 14% from 2009 to 2012. At present, the Indian gems and jewellery market is dominated by the unorganized sector; however, the trend is set to change in near future with the branded jewellery market growing at an expected CAGR of more than 41% in the coming four

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years. As per our research report, with its consumption pegged at nearly 20%, India remains worlds largest gold consumer and this share is expected to grow further. Given the fact that majority of market share is occupied by family-owned jewelers, the domination of unorganized segment still continues on the Indian gems and jewellery market. However, this scenario is gradually changing with the entrance of organized players who primarily focus on customer satisfaction by giving better and finer quality products. Thus, consumers are now moving towards branded jewellery which is more reliable in terms of quality and design.

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Traditional v/s Branded jewelers


Gems and Jewellery sales and marketing received a facelift with the advent of the supermarket culture. As organized retail in India progresses to the next lap, Sadanand Subramanian checks for Gold ornaments World with some precious Industry players about their preparedness and strategy to achieve maximum mileage. As India reacts to a retail revolution, the hitherto sober gems and jewellery industry seems to have jumped on the bandwagon with a clear plan of action. The industry has already made a mark by capturing 3 per cent of the organized retail space thanks to the leadership shown by a handful of companies prepared to dazzle the world. While organized retail under this segment impressively grows at over 50 per cent annually, deliberations are on to arrive at what the industry in general must do to keep the customer perennially delighted. The gems and jewellery market in India is estimated to be about Rs.80,000 crores and the topmost agenda is to adopt the right strategy to accelerate its growth keeping in mind current global dynamics. For now the industry faces keen competition from other luxury goods such as electronic innovations and other personal accessories. How far is it necessary for the gems and jewellery sector to seriously consider it? There is no doubt that things are a lot more organized in stores inside malls. They also showcase and present products very attractively. But in my opinion, real sales take place through traditional jewellery stores as jewellery is mainly sold on trust. Ghanshyam Dholakia
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The urgency in the industry indicates rapid changes in the way goods are produced and marketed. The evolution of new formats for sale and the massive technology and to some extent, sizeable infrastructural developments taking place all foretell a prospect of growth way beyond the current overall 10 per cent. The Indian gems and jewellery industry boasts a strength of over 3 lakh jewellery retailers across the length and breadth of this country. The huge number indicates strength in itself but it also indicates a difficult diversity to grapple with when exploring common grounds to formulate united approaches to tackle common concerns.

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Organized V/s Traditional Retail


Comparisons have always been drawn between organized retail and traditional retail. Attempts have always been made to define them. Rooting for organized retail, Navneet Goenka, Vice- Chairman of Goenka Gold ornaments and Jewels says, Right now organized retail seems to have wrested an edge over traditional retail. Goenka argues that the indications to this effect are seen in the manner large proportions of the society are becoming lifestyle oriented, especially the younger generation. When considering Indias statistic of having the highest percentage of youth in the world, this observation cannot be taken lightly. Goenka says that the gems and jewellery sector is one of the fastest growing segments. He adds, The young generation today has more disposable income and they are willing to spend it on luxuries of choice. Ghanshyam Dholakia, partner, Harikrisha Exports holds a different view with regard to the tussle for supremacy over the two formats. There is no doubt that things are a lot more organized in stores inside malls, he concedes. They also showcase and present products very attractively. But in my opinion, real sales take place through traditional jewellery stores as jewellery is mainly sold on trust. While explaining his point of view, he adds, To the credit of traditional jewellery stores they also have upgraded themselves in various ways including the overall ambience in the last five to ten years. They are also changing themselves in the matters of presentation and the customer approach. Dholakia says that in promotions and awareness creation, traditional retailers have realized its importance thereof and have started allocating sizeable budgets for them. Consequently

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this section has already started reaping the benefits of quality promotions by creating awareness about their products and services. Dholakia is some what emphatic with regard to modern day organized retail citadels, In my personal opinion malls mainly serve the purpose of promotion and show of products. I dont think a lot of gems and jewellery sale takes place in malls. Ashwin Shah, Head of Retail at C. Mahendra Exports holds a similar view with regard to jewellery sales at modern shopping malls. He opines, The sales that take place in a mall are of a very different kind. You can call it window shopping if you like. Shah elucidates his point, The young generation often resorts to some impulse buying. He stresses that serious buyers who are looking for high value purchases for occasions such as weddings prefer to plan their jewellery shopping and eventually purchase from known reputed jewelers.

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Changes in Gems & Jewellery Retail


Whilst organized retailers are ahead when it comes to taking care of the different aspects in the marketing and sales value chain, those in traditional retail are also changing or adapting to the needs of the modern customer in the areas of service and customer care. They too are improving their style of presenting and dealing with customers. In the past, jewelers didnt have much modern education. Today, there are a number of MBAs in these families and amongst key personnel employed by them, points out Ghanshyam Dholakia.

Retailing the Organized Way


While complementing the planned approach by organized retail, Mahesh Gandani-Head Retail, Hari Krishna Exports says, We can see that times have changed and somewhere along the way, the whole approach to marketing has also undergone transformation. Gandani says that for branded Gold ornaments jewellery there is much planning involved. He says meticulous strategy is charted out, and there is systematic presentation of the product. All this goes on even as a product portfolio is made and promotions are carried out. Gandani says creating brand awareness in the minds of the consumers is all about adopting a few strategic steps. One might say the difference between traditional and organized is just doing and doing by planning. Recent developments have been both a boon as well as a bane. Actually, this has spurred us on to become innovative with our offerings to suit the market. We have actually

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managed to reduce cost by adopting the strategy of reducing the volume of gold in some of our products to make it affordable. Ashwin Shah Speaking about organized retail, V. Muraleedharan, gems and jewellery professional and visiting faculty at well known management institutes in Sitapur says, The number of foreign brands coming into India is simply amazing. Brands that were only heard of a few years ago are today very much within anyones reach here. Muraleedharan goes on to explain, So far people who had only seen traditional offerings have started making intelligent international comparisons with Indian products and this has brought about real room for retail to grow a number of times. Well known brands have always insisted that when they talk about a particular grade, they are certified. Moreover the quality standard is confirmed and authorized and remains the same in any laboratory in the world. Muraleedharan says, In my opinion the quality a brand expresses, and the certification make it easy for a customer to confidently buy the product. The Value Proposition: Today everyone is looking for value for money, a new design, a new concept, something very creative and that is the concept of retail today. It is not like yesterday where the shopkeeper or the manufacturer used to dominate. Today, the customer is going for customized designs; the whole concept is changing, says Muralidharan. The consumer is looking for value for money, when they buy Gold ornamentss. They like to buy from reputed players like example Tanishq, S.P.Jewellers, Goenka, Nakshatra, Kiah and Nirvana. All of whom have achieved very organized presence in the market today. Each
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one of them has a standard quality certification internationally and that is what is going in the minds of the customer when they talk about buying from the organized sector.

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Research Methodology

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Research Methodology
Research is initiated by examining the secondary data to gain insight into the problem. The primary data is evaluated on the basis of the analysis of the secondary data.

DEVELOPING THE RESEARCH PLAN The data for this research project would be collected through questionnaire. A structured questionnaire would be framed as it is less time consuming, generates specific and to the point information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers. Both type of questions i.e. Open ended and closed ended, would be used.

COLLECTION OF DATA a) Secondary Data: It was collected from internal sources. The secondary data was collected from the articles, news papers, management books, and the internet. b) Primary data: They were the main source of Primary data. The method of collection of primary data would be direct personal interview through a structured questionnaire. SAMPLING PLAN Since it is not possible to study whole population, it is necessary to obtain representative samples from the population to understand its characteristics. 1) Sampling Units: would comprise of men and women.
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2) Research Instrument: Structured Questionnaire SAMPLE SIZE 100 respondent The primary data would be collected from 1) The population of SITAPUR city The secondary data would be collected from: 1) Books 2) Magazines/ Project report 3) Internet 4) Articles The questionnaires response format for the population would be close ended questions. With a mix of question types varying from ranking, multiple choice to checklist questions. The attitude of the respondents would be measured by itemized category scales, pictorial scale.

Situation Analysis

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Contemporary Ti Design is a start-up company operating out of the owner's home. Marketing will be key to raise visibility and awareness of Contemporary Ti Design and their products. The basic market need is for unusual pieces of art jewelry crafted out of titanium. Titanium is used because of its hypoallergenic qualities (ideal for necklaces and earrings that touch the skin), its incredible strength, and light weight. Market Summary Contemporary Ti Design has a lot of information regarding the market and attributes concerning their target customers. This information will be leveraged to continually determine who the customer is, their specific needs, and how Contemporary Ti Design can best communicate with them. Market Needs Contemporary Ti Design is providing its customers with innovative, creative, handmade jewelry. It will provide the following benefits to their customers:

Selection: A wide range of jewelry styles, creations, and anodizing schemes. Accessibility: Ti design sells direct to the consumer, through a network of art/jewelry galleries, and at art fairs and shows.

Customer service: The patron will be impressed with the level of attention and service that they receive. This level of service occurs during all transactions with Ti designs from answering questions, to order taking, to warranty repairs.

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Competitive pricing: The pricing structure provides the consumer with a good value for handmade jewelry and the craftsmen with a fair profit.

Market Trends The market trend within the jewelry industry is a movement toward custom, unique pieces as well as limited production items. This trend is in response to the climate of the industry in the mid-nineties where the jewelry market was flooded with thousands of identical pieces of jewelry. Within a few years, people were running into others who had the same piece of jewelry. This element of commonality or "run of the mill-ness" fueled demand for artistic jewelry that was in low production and unique, not something that you would see very often. Customers are using similar pieces of jewelry as a way of creating distinction from the common population, a way to stand out. This desire is part of a broader desire to be different. Contemporary Ti Design has leveraged this trend by creating unique pieces that are distinct.

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Market Growth The artistic jewelry segment of the larger jewelry industry is growing at a healthy 9%. This growth can be attributed to the value that people place on having distinctive, unique pieces of jewelry. Another factor that is supporting the growth is the blending of art and jewelry. Traditionally jewelry was ornate pieces made out of precious metals. The nice pieces were a symbol of wealth or status. As long as the piece was made out of a precious metal, there was value attributed to the piece just by virtue of what it was made out of, regardless of the creativity of the actual piece. The younger population that recognizes the aesthetic value of art work is now demanding jewelry to have artistic elements. In essence it is art that you wear. These trends are helping the industry grow.

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SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing Contemporary Ti Design. Strengths

Unique designs and construction methods. Strong relationships with suppliers as well as galleries. The flexibility to provide custom pieces. A comprehensive distribution network from a robust website and a network of galleries.

Weaknesses

A large portion of the target market that is unaware of Contemporary Ti Design's products.

Limited time and budget to market the company to the segmented target population.

The struggle to constantly create new designs. The possible inability to meet demand due to the small size of the company.

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Opportunities

A growing market that, to a large degree, is unaware of Contemporary Ti Design. The possibility to grow the size of the company so Steve is spending his time creating and allowing others to deal with the administrative details.

The injection of fresh, creative designs in a somewhat stagnant industry.

Threats

A decrease of availability of raw materials due to demand from other industries. Artistic copycats that enter the market and mimic Steve's designs. A slowdown of the economy that will have a reduction on individual's discretionary income.

Competition and Buying Patterns As previously stated the jewelry industry is composed of thousand upon thousands of people. Some work and distribute locally, others have national distribution systems set up. Some artists will design products for larger companies to manufacture, others will design and make the pieces themselves. This plan will have an abridged competition section. This is because of the very large and distributed nature of artisan jewelry design, the market is entirely too dispersed to have a complete catalog of the competition. Competition takes the following forms:

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Artists creating designs that are manufactured on a large scale and distributed nationally. The artists might be famous enough to have their own one-name studio that creates designs and the product is made and sold under the larger companies name. If the artist is not famous enough to have national name recognition, the designers might belong to a firm that is hired to develop designs for a company who will manufacture and sell the product.

A company that has their own designers in-house. In this case everything is done internally, design, marketing and wholesaling. Another variation would be inhouse designers, marketers and wholesalers with the manufacturing contracted out.

Artists such as Steve who design and make all of the pieces themselves, and then do the wholesaling or retailing themselves. In essence, one-man shows.

The buying patterns of consumers fall typically into two types. Gifts and impulse purchases. A gift purchase occurs when the buyer is looking for a gift for someone, sees the art piece, and then purchases it. In this case the plan is to make a purchase, it is just not known what or where that purchase will be made. The other buying pattern is an impulse purchase. Someone will be shopping, they are not in need of anything, will see the item and have to have it, buying it on the spot. One last pattern, that occurs less frequently is if someone was looking for an "accessory" that would match an outfit and happens to come across the piece of jewelry and buys it.

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Product Offering Contemporary Ti Design manufactures titanium jewelry. The jewelry takes the form of pendants, earrings, and pins. All of the jewelry is made out of titanium. All of the products are designed and made by Steve. Steve has chosen titanium because of its unique characteristics. It is stronger than steel, yet similar in weight to aluminum. It is inert and hypoallergenic. Most of the jewelry is left unfinished. The gray of the titanium by itself looks quite nice. Some of the pieces are anodized. Anodizing adds a broad range colors to the titanium. Anodizing occurs by immersing the titanium in electrically charged water or hooking up the titanium to a electrical power source. When charged with electricity, a light film or oxide will form on the surface of the titanium and this produces color. Contemporary Ti Design's pieces are constructed out of titanium sheets. The material is cut using a saw blade. The interior of the pieces are cut by piercing a small hole through the interior and inserting a saw blade. All pieces are made form several pieces of titanium. The pieces are held together by rivets. Small holes are drilled through the different pieces and a small wire (rivet) is inserted through. The head and end of the rivet is tapped with a hammer and that enlarges the end holding the pieces together. In addition to the utility of the rivet, it is aesthetically pleasing in terms of the overall look of the piece.
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Keys to Success

Customer service. Unique designs. Creativeness. Professionalism.

Critical Issues Contemporary Ti Design is still in the speculative stage as a start-up venture. Its critical issues include continuing to take a modest fiscal approach, expanding at a reasonable rate, not for the sake of expansion in itself, but because it is economically wise to. Contemporary Ti Design will continue to build brand awareness to assure growth in the customer and gallery base.

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Data Analysis And Interceptions

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Data Analysis and Interceptions


The objectives of the study was to understand the consumers buying preferences, the reach of branded jewelers, brand awareness of various brands in the jewelers market. Hence the first question was to find out the factors that guide a customer while purchasing jewellery which dealt with nine attributes. The respondents where just asked to tick on the attribute that guided that purchase decision. The result is as follows

1) Factors that guide you while purchasing jewellery?

Family Promotion Design 85 Price 92 Purity 87 Image 65 Variety Display and Offers 67 5 10 2 Friends 12 Service and

From the above results an observation can be drawn that out of the 100 respondents 92 of them feel that price is a major factor that guides their purchase decision. Apart from price purity also is considered important by 87 respondents, followed by design with 85 respondents feel it is an important factor. Variety and image are the other important attributes that are considered while making a purchase decision. Attributes like family

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and friends, promotions and offers are still not very popular among the respondents selected for this research. The attributes like service and display have been selected only by 2 and 5 respondents respectively showing that these are the least important thing that guide an individual to purchase jewellery. The diagram below shows the guiding factor of the respondents while purchasing jewellery in an ascending manner.

Question two dealt with the awareness of various brands of jewellery available in the market. This question would help find out the percentage of the respondents who are aware about branded jewellery.

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2) Are you aware of the various jewellery brands available in the market? Yes 95 No 5

From the above result it can be observed that there is 95% awareness about branded jewellery. Out of the 95 respondents there is not a single respondent who is not aware about branded jewellery.

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3) Tick against the brands that you are aware about in the jewellery market The third question was to find out the popularity of 5 brands. The respondents were asked to tick against the brands that they are aware about. The 5 brands considered here are Kisna, Tanishq, Ddamas, Oyzterbay, and Trendsmith. These are the prominent brands for gold jewellery there are many other players but the research is limited to gold jewellery. Zaveri Brands No of 70 80 100 100 Kisna Tanishq bazar Respondents Bafna

From the above table and figure inference can be drawn that brands like Kisna, Tanishq are known but the traditional SITAPUR outlets of Zaveri bazar and Bafna our preferred The fourth question was to find out the reason why the respondent purchases jewellery that is the reason for purchasing. Is it purchased as an investment option or on occasions, festivals or as a fashion statement? 57

4) You buy jewellery for

Investment Fashion Occasions Festivals No of 34 Respondents 39 11 16

34 respondents buy jewellery for investment purpose, 39 respondents look out for fashion or the latest trends while purchasing jewellery. 11 respondents buy jewellery during occasions like weddings, anniversary, birthdays etc. and 16 respondents buy jewellery during festivals.

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5) Which jewellery do you prefer?

Branded Preference No of 69 Respondents

Family

Jewellery Jeweler 31

From the above table it can be observed that 69 respondents prefer branded jewellery and 31 respondents prefer family jewelers. This makes branded jewellery more popular among the respondents.

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6) Have you bought any branded jewellery?

Branded Jewellery No of Respondents

Bought 78

Not bought 22

Out of the 100 respondents 78 have bought branded jewellery and 22 have not bought branded jewellery. However even if these 22 respondents have not bought branded jewellery they are aware of branded jewellery being sold and also know the brands by their names. Since the sample consist of females and males the next set of question deals with whether jewellery is bought for gifting purpose

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7) Do you buy jewellery for gifting purpose? Buy jewellery Yes for gifting No Respondents of 30 70 No

30 respondents of the 100 buy jewellery for gifting purpose among these 30 12 are men. 70% of the respondents do not buy jewellery for gifting purpose.

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8) Where do you prefer to buy the jewellery from (for gifting)? Branded No of Respondents 14 Family jeweler 16

14 respondents out of 30 buy branded jewellery for gifting and 16 out of 30 buy jewellery from their family jeweler for gifting. Percentage wise 46% buy branded jewellery for gifts and 54% buy jewellery for gifting from their family jeweler.

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9) Given below are few characteristics of traditional family jewelers (or local jewellery retail stores). Please give each characteristic some points based on your assessment, such that the points range from 1 to 10. (1 being the lowest and 10 being the highest).

Characteristicsof Convenient Trustworthy Family Jewelers Number of 660 points 895 775 870 GoodInvestment Price

Traditional design 745

The respondents were asked to give points on a scale of 1 to 10 where 10 was the highest hence the total figures are arrived by adding the points given by all the 100 respondents. Hence if the convenience characteristic was to be taken then it scored 660 out of the grand total of 1000. The respondents have rated trust aspect of family jewelers high hence it has scored 895. The respondents also feel that the price charged by the family jewelers is reasonable and hence have given it decent points i.e. 870. While purchasing jewellery from family jewelers the respondents

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consider it to be a good investment. Family jewelers are popular for traditional designs and the respondents have given it points that add up to 745.

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10)If you purchase branded jewellery then given below are a few characteristics. Please
give each characteristic some points based on your assessment, such that the points range from 1 to 10. (1 being the lowest and 10 being the highest).

Wide range Trendy Characteristics branded jewellery of of products Shopping fashionable under roof Number of points 663 590 727 673 one experience jewellery Price and

Respondents rate trendy and fashionable jewellery highest when it comes to branded jewellery. It scores 727 out of 780. Price also according to the respondents is justified hence it scores 673. Shopping experience wise branded showroom scores least among the other characteristics. This could also be because when a customer goes to buy jewellery he may not be looking for the experience but wanting good trendy jewellery which is priced appropriately.

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Findings

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Findings
Variety and image are the other important attributes that are considered while making a purchase decision. Attributes like family and friends, promotions and offers are still not very popular among the respondents selected for this research.

Most of the respondents there is not a single respondent who is not aware about branded jewellery.

These are the prominent brands for gold jewellery there are many other players but the research is limited to gold jewellery.

It can be observed that 69 respondents prefer branded jewellery and 31 respondents prefer family jewelers. This makes branded jewellery more popular among the respondents.

Out of the 100 respondents 78 have bought branded jewellery and 22 have not bought branded jewellery. However even if these 22 respondents have not bought branded 67

jewellery they are aware of branded jewellery being sold and also know the brands by their names.

The respondents have rated trust aspect of family jewelers high hence it has scored 895. The respondents also feel that the price charged by the family jewelers is reasonable and hence have given it decent points i.e. 870. While purchasing jewellery from family jewelers the respondents consider it to be a good investment. Family jewelers are popular for traditional designs and the respondents have given it points that add up to 745.

Shopping experience wise branded showroom scores least among the other characteristics. This could also be because when a customer goes to buy jewellery he may not be looking for the experience but wanting good trendy jewellery which is priced appropriately.

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Conclusion

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Conclusion

The conclusions that can be drawn from the study are:


1. The guiding factor behind purchasing jewellery is price, purity and design which

score the maximum. Other factors are variety, the brand image, influence of family and friends. The least guiding factor for purchasing jewellery is the service and display. Hence when a customer goes to buy jewellery they do keep the price in mind followed by the purity and the design. Factors like service given the shop or by the jeweler and the display do not have a very big impact on the customers.
2. Branded jewellery is extremely popular since it has 100% awareness. This may be

due to the wide spread publicity taken up by the various brands. Brands like Kisna, Ddamas, and Tanishq are again the most popular brands. Trendsmith is a brand by Tribhovandas Bhimji Zaveri (TBZ) which is not very popular.
3. As stated in the literature review that there was a shift in consumer tastes: women

were increasingly opting for fashionable and lightweight jewellery instead of traditional chunky jewellery. Is proved to be correct by this research as respondents have selected fashion over investment while purchasing jewellery. Now jewellery is regarded as more of an accessory and less of an investment.

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4. Branded jewellery is bought by more than 3/4 th of the population. Hence it can be

said that the population is aware and has also tried these brands.
5. When jewellery is bought for gifting purpose the population still wants to buy it

from their family jewelers.


6. When it comes to family jewelers the level of satisfaction that the population has

on a scale of 1 to 10 is a little more than 7. These jewelers are also popular because of the trust that they have with their customers and also because they charge reasonable prices. These family jewelers are also popular for traditional designs hence when a customer is specifically looking out for traditional jewellery they approach these jewelers. The jewellery bought from these jewelers is considered to be pure and a good investment.
7. The level of satisfaction that the population has towards branded jewellery is a

little higher than 8. These branded jewelers have become popular for latest and trendy jewellery. Also the prices that the branded jewelers charge is justified and they provide a wide range of products under one roof.
8. The level of satisfaction that the population has for branded jewellery is higher

then that for non branded jewellery making branded jewellery more popular.
9. The consumers prefer buying branded jewellery over non branded jewellery. This

has also been proved by using the sign test. Hence to conclude branded jewellery is preferred over non branded jewellery.
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BIBLIOGRAPHY

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BIBLIOGRAPHY

1) http://www.icmrindia.org/free%20resources/casestudies/branded-gold-jewellery1.htm 2) http://www.flonnet.com/fl2223/stories/20051118003809800.htm 3) Source: http://www.rncos.com/Report/IM148.htm 4) http://www.pressabout.com/indian-customers-showing-internet-in-branded-jewellery24860/ 5) http://www.scribd.com/doc/19901085/Jewellery-Companies-Comparison 6) http://www.commodityonline.com/news/Branded-gold-jewellery-shops-lure-Indians23837-3-1.html 7) http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=266902 8) http://www.Gold ornamentsworld.net/contentview.aspx?item=2465 9) http://travelersindia.com/archive/v5n2/v5n2-indian_jewelry.html 10) http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy1/BSTR041.htm Newspapers: 1) The Times of India 2) The Economic Times

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Annexure

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QUESTIONNAIRE Name: Telephone number: Age:

1. Factors that guide you while purchasing jewellery? a. Design Price Purity Brand Image

b. Variety c. Service

Display

Promotions and offers

Family and friends influence

2. Are you aware of the various jewellery brands available in the market? a. Yes No

3. Tick against the brands that you are aware about in the jewellery market a. Kisna Tanishq Zaveri bazar Bafna

4. You buy jewellery for a. Investment Fashion Occasions Festivals

5. Which jewellery do you prefer?


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a.

Branded

Family Jeweler

6. Have you bought any branded jewellery? a. Yes No

7. Do you buy jewellery for gifting purpose? a. Yes No

8. Where do you prefer to buy the jewellery from (for gifting)? a. Branded Family Jeweler

10)even below are few characteristics of traditional family jewelers (or local jeweler retail stores). Please give each characteristic some points based on your

assessment, such that the points range from 1 to 10. (1 being the lowest and 10 being the highest). Characteristics of Family Jewelers Convenient Trustworthy Good Investment Price Traditional design Number of points

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11)If you purchase branded jewellery then given below are a few characteristics. Please give each characteristic some points based on your assessment, such that the points range from 1 to 10. (1 being the lowest and 10 being the highest).

Characteristics of Branded Jewelers Number of points Wide range of products under one roof Shopping experience Trendy and fashionable jewellery Price

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