Market Size And Trends Of Jewellery Industries Marketing Essay

Published Date: 23 Mar 2015

Bangladesh is a country of history and cultures. Different types of cultures people is living here. And the people have own culture and festival. There are also many festivals in our country as bangle. Jewellery is used by the bangle on that's occasion very much. People also used jewellery not only in occasionally but also maintain status, fashion. There is some kind of ceremony in our country we can't imagine that's without jewellery. For above all jewellery has a huge market in our country.

Market size and trends of jewellery industries:

In Bangladesh gold plated and silver jewellery market is growing day by day. And the gold has losing its market for its high price. And the ornaments made by it are getting popularity day by day in the city for insecurity in the street. Silver and semi precious stones jewellery market is also increasing day by day. Because people use these for their desire fashion, style and they can match their colure with their wearing. There are also huge market jeweler made by wood, plastic, soil in the rural area and tribal areas. Reports indicate that gold jeweler sales have slumped more than 50 percent in the past three years as demand for ornaments declined in line with soaring prices of the precious metal on the local market, said industry people. [1] 

The number customers of gold jewellery is decreasing and other jewellery such as silver, gold plated, stone, wood, semi precious stone is increasing. And the number of gold customer is decreasing because the price of gold is increasing. And the others are increasing because customer can buy it within their affordable price and can mass with their style.

Fig: The number of customer from 2006-2010of jewellery.

In the chart [2] 

Fig: The increasing price of Gold. [3] 

Market segmentation of the jewellery industries:

Market segmentation is dividing the buyers in various groups or category depends on their different types of needs, wants, characteristics, and behaviors.

Market segmentation is important because:

There are different types of buyer

Buyers have various wants and needs

Location is not same

Attitudes of all buyers are not same

Various categories income level

Sometimes buying behavior is different among group.

For the jewellery market buyer are divided into two types' man and woman. Basically women are the main buyer but only a few buyers from Hindu community for jewellery have in Bangladesh. The woman buyers' segmentation is given as follows:

Occupation

Student

Service holder

Housewife

15-25 years

******

**

25-35 years

******

*****

*****

35-45 years

******

******

45-60 years

******

Fig: Market segmentation of Jewellery industries.

(b)

Patterns of competition within the market: The biggest jewellery markets in or country are Baitul Mukarram gold and watch market. All the famous importers and makers of jewellery such as Amin jewellery, Apan Jewellery, Apurba Jewellery, Chadni Jewellery, Boishakhi Jewellery, Grmeen Jewellery, Shanonda Jewellery, and Venus Jewellery have show room in the market. There are more than 150 jewellery shops in the market. They also compete with each others in various ways.

Some important factors of their competition:

Some of them offer change facilities.

Some offers free servicing.

Provide warranty.

Provide accurate weight for gold.

Brand name also an important factor of competition.

Some are provide some unique features.

Advertisement on media.

The role of distributor and retailer: In our country most of the jewellery shop make and sale their product in the market. The biggest and famous jewellery shops have their own show room in many locations in the country. From the show room they sale their product. And most of the jewellery take order first and then make for customers.

But for the fashion jewellery it sold by both through wholesaler and retailers. Chalk Bazar in Dhaka is the biggest Wholesale market for jewellery. Businessman import and make the jewellery by themselves Factory in the market. Most of the time owner of the retail shop come in the market and buy jewelleries for sale they come from different parts of our country. Sometimes many wholesale businessman sale their product through appointed representative.

(c)

Competition pattern between traditional and fashion jewellery: There are some difference between traditional and fashion jewelry for some cases. And the competition will arise for the differences. Difference among traditional and fashion jewelry are given below.

Factors of competition

Traditional

Fashion

Use of Gold

Most of the time use

Not necessary

Use of Silver

Very rare use

Most of the time use

Use of others (stone, gold plated)

Very few

Very much

Price

Is always high

within affordable for all

Resale value

Good resale value

No resale value

Users

Aged, professional

Young generation

Warranty

Have need

Most of the time not need

According to all above discussion it is clear that jewellery have a good market in Bangladesh. The owner of the industries should have to play their activities more carefully for developing the market.

Task-2

It is ancient tradition in Bangladesh of adorning oneself by jewellery. The tradition has still now and more vigorous from earlier in Bangladesh. Now a day's jewellery are divided into two basic category such as traditional and fashion jewellery. The art of jewellery has been developed throughout time. There is various types' jewellery for all parts of body. Price also differs among them. The buying behavior is also different among customer to buy the jewellery. And some factors also motivate the customer to buy the jewellery.

(a)

When jewellery is purchased: As there are various types and forms of jewellery so there are vario9us types of customer also. So the customers buying behavior is also different. As Bangladesh is multicultural country".

All the community has many festivals and the festivals are the main season for both buyers and sellers to buy and sale the jewellery. The biggest festival in our country is Eid and Durga Puza. The sale of jewellery is highest on the two festivals. The sale of traditional and fashion jewellery stays same on that time.

And in wedding ceremony customer buy much jewellery in our country. The use of jewellery in wedding ceremony is our tradition. Gold and Diamond jewellery is common for its.

We purchased jewellery because: The women of our country wear jewellery for their personal adornments. This is for our culture. It has also a social value. . Jewellery is not purchased only for personal adornments but also purchased for dedicated to GOD.

The purchase way: In general customers are buying jewellery by going to the jewellery shop. Most of the time customers buy jewellery by cash. Nowadays some private bank in Bangladesh also provide loan to purchase jewellery in some famous jewellery shop. So customers also allow purchasing jeweler in credit.

(b)

The relationship between the purchaser and the recipient of the jewellery:

Relation between purchaser and the recipient can be divided into two ways such as formal and informal:

Formal relation:

Most of the time formal relation will make with the traditional jewellery customer. Relationship make with some causes such as businessman provide many opportunities to the customers. They provide warranty, guaranty after sale service, resale opportunity. Sometimes businessmen keep many gift options to their customers on different occasions. Nowadays many jewellery businessmen decorated their showroom, appointed professional sales people to attract their customers.

Informal relation:

Informal relation is made with the fashion jewellery customers and it fluctuates very much because customers taste change very much for these types of jewellery customers. So it's making when they businessmen offer new and innovatory products.

(c)

The motivation for purchase and the role of social, cultural, and peer pressures:

Social:

There are various types of social class on a society. And these classes are creating for difference in occupation, education, income level, wealth among the people live in a society. So the upper classes people have to maintain their class. When they are buying anything they look the brand name of the product. And the social value of that. And lower classes people stay close at home when they buy jewelers.

Cultural:

What is an acceptable product for a group of people they learn it from their own culture. And the culture is transmitted to generation to generation. As Bangladeshi we have own culture. We buy and wear that kind of jewelers that is acceptable in our culture. But nowadays some western culture also influenced our young generation.

Peer pressure: It is another vital factor of motivation when people buy jewellery product. Anybody can see an ornament wearing her friends. Then she asked her friend where from buy, how much the price is etc. sometimes friend also give many information and influenced another to buy the jewellery from a particular shop.

Pre marriage and post marriage: It's also another important motivation factor for the jewellery customers. Before marriage women are buy fashion jewellery most of the time. But after marriage they buy traditional jewellery most of the time. Because of most of the woman in our country are house wife. And their life style is change after marriage. There is also another reason they also see it their savings for future. When they buy traditional jewellery by expend a big amounts of money.

So the people of our country buy lots of jewellery in different occasion and festival. Many motivational factor has been working such as culture, peer pressure, social class etc.

Task: 3

(a)

Role of direct consumer advertising: Advertisement is the simple way to let the people know about a business. The purpose of advertising is not only increasing very quick sale but also noticed the people. For the jewellery business direct consumer advertising is most important for all kind of jeweler especially for traditional jewellery.

When a woman purchase jewellery and use it then she can convince other customers in various ways:

Family: When customers purchase a jewellery product and get benefits or feel better then she tell her other family members to purchase the jewellery. And when customers know about a product from their family member then they will very much influence to buy the product. For the traditional jewellery family member role is very important because when customers buy traditional jewellery they always try to find information about the product from believable or nearest person.

Friends and colleagues: For the fashion jewellery business friends and colleagues also play very important role as part of direct consumer advertising. Most of the customers of fashion jewellery are younger women. So most of the time they will be influenced by their friends and colleagues such as if one friend sees another friend or colleague looks beautiful by wearing a jewellery product then she asked her friend where she get the product? Or where she can buy? So these types of customers will be influenced very easily from her friends or colleagues.

Brand loyalty: Brand loyalty is important for jewellery section. Many consumer are trusted in specific jewellery shop. Brand Loyalty is the consumer's conscious or unconscious decision, expressed through intention or behavior, to repurchase a brand continually. It occurs because the consumer perceives that the brand offers the right product features, image, or level of quality at the right price. Consumer behavior is habitual because habits are safe and familiar. In order to create brand loyalty, advertisers must break consumer habits, help them acquire new habits, and reinforce those habits by reminding consumers of the value of their purchase and encourage them to continue purchasing those products in the future.

Advantages are

It increase the sale

Established the brand name

Encourage the existing customer

Attract the new customer

Company relation also increases

Role of retailer: Most of the time for traditional jewellery retailer do not play important role in our country. Because every famous and popular jewellery shop have own showroom and they run their business through it.

For fashion jewellery retailer play good role. Because they always trying to attract new customer and built a good relationship with them. Customers also find out them as they provide according to their requirements.

(b)

Important is difference/innovatory design in purchase:

Difference or innovatory design is most important for both traditional and fashion jewellery. There are different types of customer and their choice taste needs are always different. An innovative design for fashion jewellery always takes customer attraction very quickly. The same design is a cause of boring. Nowadays people always know about new and innovative things for globalization. They have more willing to break the old custom. The innovative design only for product cannot make success alone. Innovative design for sales style, decoration is also important. The number of competitor is increasing day by day in the market. The entire competitors are aware of customer satisfaction. Customer satisfaction is keys of success. Without creating new and innovative product satisfaction ever come. So to survive in this world competitive market making difference from other is very important.

(c)

Risk reduction: To run jewellery business there need a big financial investment. And when customer buys jewelry they expend a big amount of money. As both have to investment is big so both are face some risk.

Business man risk: The major risk for this business insecurity. They should apply both physical and technological security system.

Physical security: There are many security guard provider companies. They provide well trained guard. Companies can take help from them or recruit guard and give them training for their need.

Technological security: In this modern world there are various types of technological security system. Jewellery businessman should apply some of these such as web camera, figure print, foot print etc.

Financial risk: Their financial security they should do insurance for their company.

Customer risk:

Customers also face some uncertainty to purchase jewellery such as weight, product stability, jewellery shop stability, physical security etc.

Businessmen should provide the right weight by the proper equipment and should keep the promise with customers.

Government should take necessary step to reduce both side risks by creating and implementing law properly. And encourage the businessmen by giving various facilities such as tax reducing.

So it can say that if business can attract the customer through advertising or using brand name and government can ensure both party safety this will more favorable business in our country.

Task: 4

Marketing research is very important because it help the management to take the decision to achieve their business goal. And a well planned research can help to be successful. For this success the methodology of research select is most important and tough job. Because the methodology is define the way how the research will be done.

(a)

To reaching the new customer and increase the attractiveness primary market research is most appropriate for the Steve Moss Collection. There are different types of primary research methodology.

Primary Research

Quantitative

Research

Qualitative

Research

Observation

Research

Survey

Research

Experimentation

Research

Projective

Techniques

Research

Focus group

Research

In depth

Interview

Figure: primary research methodologies.

According to our country survey research is most appropriate for fashion jewellery and this research should be done through focused customers group because focused group has many advantages such as:

Interaction among the group members is possible. So they can give their opinion more correctly and more detailed.

When they talk in a crowd they talk very spontaneously.

It is very stimulating technique.

More meaningful comment can come.

Rich data can get for the direct interaction of researcher and respondent.

Secondary research: Secondary research is also important to research the market for The Steve Moss Collection. Very recent information about customer needs, want will very helpful. It also helps to select the way of research methodology and predict the cost for the research and other requirements.

(b)

In our country most of the jewellery customer are women and the 15-25 years women are the main targeted customers. So we can take a sample frame by dividing the location into urban and rural. And then the research should be done on the targeted customers.

The question should be asked:

Question

Answer

Is the James Porteous Collection well known to them?

Yes

No

Which material they prefer most?

Silver

Stone

wood

soil

others

Is the price level satisfactory?

Yes

No

Do you think their need more verification?

Yes

No

Do you satisfy with this kind of product?

Yes

No

Do you think they should establish their own showroom in different location?

Yes

No

Do you think they should have own brand sign?

Yes

No

What is your profession?

student

Service provider

housewife

(c)

In-depth interview:

It is a motivational research technique where respondents are interviewed one by one for long time. It is called the heart of motivational research. If the focus group member fell shy or do not fell comfort to respond in crowd of people the in-depth interviewed should placed in focus group.

The process of use in-depth and participative research techniques:

1. At first experienced and well trained interviewer should select. Because in the time of interview they have to understand the respondent emotion, understanding. And there needs to create an environment where the respondent can talk freely.

2. What types of information is need for the research should be determined. Such as about the Steve moss Collection acceptance in the customer. About the satisfaction of the customers.

3. A list of the respondents should make.

4. The question pattern should be open- ended not close ended. Such as instead of asking do you satisfy by using our product? Have to ask please say something about our product.

5. All information from the respondent should take by carefully interviewed her feeling, emotion, lecture etc.

So if all of these research methodologies can be done properly. Then it will be very easy to identify the customer need, wants and what are the causes of their satisfactions and dissatisfactions. If the product can be develop according to the customer's information then they receive the product more and the company's aim will be success.

Task: 5

(a)

Before start a business everybody should have to see for the prospective market. Because of without good planning about the market situation every strategy may fall. Bangladesh is very viable market for these types of jewellery. Because

As most of the customer are women in our country. So it has a huge amount of customers.

According to our businessman say the number of customer are increasing day by day for the fashion jewellery.

Profit can earn more sassily within short period of time.

Business man also interested because risky of return after investment is very few.

(b)

The specific benefits for the purchaser:

If the market is competitive obviously the market will be smarter and the competitors are more concern about their customer.

So the purchaser when buy any product from the competitive market they must get some extra advantages such as:

Businessmen always want that their customer will loyal for the company so they try to give the service at their best level.

So customers get the best services.

They always try to make their product better than their competitors because if they fall for that they must lose their customers as well as their market share.

So they always concern about it and customers always have the chance of getting the new, innovatory, and best product.

To be more advanced than competitors every company always provide some opportunities for their product to the customer such as they provide warranty, guaranty, resale, change facility etc sometime s they provide price off though it is little in amount but benefit for customers.

Sometimes many companies do some kinds of social work that is good for customers as well as whole society.

(c)

As the main customer of this types of jewellery are in the age of 15-25. So these types of fashion jewellery companies should segment the market according to their customer's lifestyle and their lifestyle. Because of in this age they are more stylish in their life style. They are more ambitious in their personality. So they always accept new and innovatory things and try to make them update always.

Promoting tools for the customers:

Advertising:

Advertising on television would be more effective because a maximum number of audiences of TV program are women in our country. Advertising on others media also effective such as newspaper, online search engine, billboard. The company would also advertise on the buses or taxis which are travel from city to city.

Personal selling:

It helps to building customer relationship and increase the number of customers. Many customers are also promoting to buy the product by influencing from others such as friends, colleagues, family members etc. so it will very much effective for this segment.

Sales promotion:

If the company arranges some system to sell such as coupons, contest, premium it helps to get more customer attention and unique quality.

Public relations:

The Company can be cosponsor for some special types or events such as sports, cultural programmers or different kinds of social welfare activities.

Direct marketing:

Marketing by direct mail, catalogs, telephone call is called direct marketing. It is also effective for the jewellery customers. It helps to make strong relationship with consumers.

Not only these tool help to attract these customers packaging and distribution is also very important to promote them.

And the push promotion mix strategy will be appropriate for this marketing. Because of this strategy producer push the product through marketing channel to final customers. And it's marketing activities towards channel members to induce them to carry the product to promote to final customers. [4] 

(d)

Pricing strategy:

One of the four major elements of the marketing mix is price. Pricing is an important strategic issue because it is related to product positioning. Furthermore, pricing affects other marketing mix elements such as product features, channel decisions, and promotion. [5] Before pricing there need to follow some steps such as:

Develop market strategy and make marketing decision.

Estimate the demand.

Calculate actual cost.

Understand competitor's action and environmental constrains.

Set the objective of pricing.

Finally determine the price.

The objective of pricing:

To maximize the company revenue and profit.

Sell the maximum number of product in the market.

Long time survive in the market.

Be market leader by use the price.

Recovery the partial cost and stable level of profit.

The fashion jewellery company has to follow the market penetration strategy which helps to increase the number customers as well as increase the sell for its low price. There are also some reasons such as:

The market of these types of product is very much priced sensitive. So low cost can help to market growth.

If price is increase the quantity demand will decrease very significantly.

Some specific cost such as production and distribution cost will decrease because of number of sale will increase.

Create a better position from the competitors.

Distribution strategy: There are also some factors to deciding distribution strategy

Market factors: Consumer behaviors, preference from where they buy etc.

Producer factors: Capability for establishing the customer's requirements.

Product factors: Product categories complex, perishable, long time or short time uses etc.

Among the selective and exclusive strategy of distribution selective strategy is most appropriate for the Steve Moss Collection company.

Selective distribution: Distribution of products only to those wholesalers or retailers who: (1) agree to sell the product for no less than a certain price; (2) patronize the distributor on a regular basis or for at least a certain dollar amount annually; or (3) meet specific requirements established by the distributor as outlined by the manufacturer. [6] 

It increases the better service level control, inventory and merchandising control.

It enhances the dealer's loyalty and brand image.

Promotes for better forecasting.

Manufacturer can control price level f dame product among sellers.

So customer loyalty can achieve.

And the product is not expensive.

After above all discussion we see that, from the ancient period our populations are familiar with jewellery. Though there are some risks of this business and the market research says that traditional jewellery market is fall last few years but the market for the fashion jewellery is most viable. If all of these research will be done and strategies will follow properly businessman will be successful in these types of jewellery business.

Selective distribution select for reason such as:

Psychographic: Psychographic is important for major segmentation. Psychographic segmentation means "Dividing a market into different groups based on social class, lifestyle or personality characteristics.

Psychographic

Social

Class

Lower lowers, upper lowers, working class, middle class, upper middle class, lower uppers, upper upper.

Figure of: Psychographic

Social Class

Traditional jewellery

user

Fashion jewellery user

Middle class

****

*********

Upper class

*********

*************

Upper upper class

****************

*********************

Figure of: User of family class.

Explanation Psychographic in Jewellery: In traditional jewellery use of middle class family maximum time in festival. Specially on marriage ceremony for hindu & muslim families. They are also use to occasionally. In middle class use of the fashion jewellery contributes also very well. Especially in 15-28 years old ages person.

Upper class family use to traditional jewellery marriage, akika, in all family occasional. This is also use to same religious man & women. Upper classes also good participate for fashion jewellery.

Upper upper class use to traditional & fashion jewellery very well known.

Conclusion: In Bangladesh has too many of the user in traditional & fashion jewellery. The jewellery industries in Bangladesh have very old & traditional. So, that was big market present here. In Bangladesh gold plated and silver jewellery market is growing day by day. So, Investor is looking for there & can be benefited. The maximum user in women. Bangladesh total population in 16, 5000000. Maximum of citizen are women, girl & young girl. Jewellery industry grows up in this country in very old history. Finally say to certainly jewellery industry good position in Bangladesh.