SOLUTION TO CASE STUDY PLATINUM: OWNERS PRIDE WITHOUT NEIGHBOURS ENVY

BY: Kapish Gaba Parul Verma

JK PADAMPAT SINGHANIA INSTITUTE OF MANAGEMENT & TECHNOLOGY, GURGAON.

CONTENTS
1. Summary of the case 2. Facts & figures 3. SWOT analysis 4. PEST analysis 5. Solution of the case (question given)

SUMMARY OF THE CASE

MAIN FOCUS OF THE CASE:

Kapish (A freshly minted MBA from Wharton, Kapish was the son of a family of reputed jewelers from Delhi.) Platinum Rustenburg Platinum Mines Platinum Guild International (PGI) Indian Council for Marketing Research (ICMR), the agency appointed by kapish for marketing research.

WHAT THE CASE ALL ABOUT ?

Kapish a MBA from Wharton want to make mark for himself, which was not possible by joining fathers business. He got an idea about platinum industry by reading newspaper. He started researching on platinum industry. Case revolves around how he gathers information regarding platinum industry.

FACTS & FIGURES

PGI introduced platinum in Indian market in 2000 through tie ups with leading Indian designers, jeweler manufacturers and retailers. Platinum consumption should climb from 2-2.5 tons currently to about 5 tons by 2013-14. India is one among the top 12 countries of dollar millionaires (2010 figures) Indias HNI population at 1, 53,000 in 2010 has grown 20.8% (126,000 people in 2009), the highest growth rate among all the countries of the world. Presently there are 62 thousand households with an average income of Rs.750 million. This number is likely to go up by 2, 19,000 with average income going up to Rs. 1000 million by 2015-16. 79% Indians buy luxury items only if the logos reputation impresses them. 79% Indians also said that they based their buying decision heavily influenced by the fact as to which celebrity was seen endorsing a brand. With merely 11.5% of their spend being on food, and another 6% on FMCGs, they hold immense promise for sellers of other goods and services, including jewelery. Specifically for jewelery 57% purchase in planned manner, 37 % buy on impulse, while the remaining 6% take recourse to both Regionally, North India has largest share of the total HNI population, while Mumbai and Delhi top the list of 20 cities with the highest share of urban Indian rich households.

SWOT ANALYSIS

STRENGHTH From jwellers family. This business was in his blood.

WEAKNESS In India gold is still the last word when it comes to feeling rich. Through the decade of 90s Indians did briefly flirt with diamonds and platinum, but ultimately the golden metal has triumphed. Persons with income of 10-50 lakhs mostly spent on fine dining. Persons with 50-100 lakhs mostly spent on travelling & spas.

OPPURTUNITY Platinum consumption will rise to 5 tons by 2013-2014. India among the top 12 countries of dollar millionaires. Average income will go up to 1000 million. North India has largest share of the total HNI population Mumbai and Delhi top the list of 20 cities with the highest share of urban Indian rich households.

THREAT Still people prefer to buy gold as they think this is a status symbol for them. People are moving towards premium to super premium but not luxury. Cheap gold , diamond & silver

PEST ANALYSIS

POLITICAL
(not given in case)

ECONOMICAL
Platinum is costly & is only for rich peoples.

Diamond, gold & silver is availble at

low cost as compared to platinum.

SOCIAL
Act as status symbol. Provide a feeling of beauty as compared to others.

TECHNOLOGICAL
It is made up of white gold so no problem of getting black. More shiny.

SOLUTION OF THE CASE

Target customers-

Demographically

Preferably

Men &Women (16-45)

Geographically - North India & top the list of 20 cities with the highest share of urban Indian rich households

Income bracket -50 lakh & above (per yr) Psychographically lifestyle Businessmen & women service(both men & women) youngsters college going student ( both girls & boys) Occasions:- men & women who like to go in grand parties. Benefits:- the person who are more interested in knowing about the benefits of the product rather then price.

4 Ps (Marketing Strategy)
Product Mainly focus on necklace, bracelet, watches, earrings, rings and accessories. Place Focusing on the target cities(metro & tier 1 cities), he must plan tie ups with high end brands and make them his customers, because if platinum comes on those big brands and is displayed in showrooms , people will buy them.

Promotion- Since our target population is small and highly exclusive, he must promote on following grounds In big aristocrat clubs , hotels (5 & 7 stars only) Organizing fashion shows which only the riches prefer visiting Must take spots in cricket matches (IPL) in the VIP blocks Magazines which are specific for high class fashion Sponsoring Platinum jewellery and his brand name for celebrities in award functions Endorsing the brand by celebrities like ashwariya rai, priyanka chopra as they are considered as eternal beauty.

Taglines to promote:

Evoke a sense of pride by wearing platinum

Gold is for the mass platinum for the unique.

Promote it as a rare metal for rare people.

Price- As his target customer is only the high class thus his items must be high priced at par with diamond,

Uniqueness and a giving a statement with platinum must be the mantra

Marketing plan should be devised for his own brand not for generic product.