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Market Analysis On Jewellery In India

Paper Type: Free Essay Subject: Marketing
Wordcount: 4331 words Published: 3rd May 2017

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1.0 Introduction

Marketing communication plays a vital role while launching a new brand or product in today's cut-throat market. It is a form of persuasion which plays the role to understand the communicator's purpose (ethos) and the communication process (pathos) thus in having an influencing effect with the customer(logos) This document describes in-depth the process involved to launch a new brand of jewellery called "Cadbury Gems Limited" in the Indian market as well as the UK market.

2.0 Cadbury Gem Analysis

Cadbury Gem has product line only in the jewellery in gold, platinum, colored gems and diamond. By 2015, its main focus will be on corporate social responsibility while operating any process. It has plans of launching "Teenager Collection" of white jewellery by 2014. Their main competitors are "Tanishq" and "Gili".

3.0 Market Analysis on Jewellery in India

The Indian jewellery market is large and consist of unbranded where branded jewellery accounts only for less than 2% per year and 300,000 consists of unorganized one. The dominant players in the field of jewellery manufacturing are Italy, Hong Kong, China, Thailand, United States. Leading player in the Indian jewellery are Gili part of the Gitanjali Gems Limited and Tansihq, Reliance Jewel, Joyalukkas.

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4.0 About Cadbury Gems

The "Cadbury Gems Limited" will cater the primary target women and secondary target men in the age group of 25-40 years in the domestic market and the international market. It will provide a differential advantage by providing "Personalized Service" for loyal customer in terms of design and patterns and expert advice on wedding jewellery in the UK market.

5.0 PEST Analysis


The Indian Government has taken up measures to lower import duty of platinum and gems ,colored stones are exempted from tax .There are plans of Indian Government to establish "Diamond Bourses".


Due to the global economic recession, India's gems and jewellery export and import also got affected it.The dynamic change in the exchange rates of pounds and INR affects the domestic as well as international market .It affected the GDP of Indian economy and thus lessen the consumer expenditure too affecting the sales.


The socio and cultural plays a huge role in the Jewellery market of India as jewellery is considered to be a tradition from ancestral time and it is a necessity in many of its cultural occasion .


India has become the leading manufacturer in terms of jewellery because of its advanced technology and according to GPEC there is a rise of 18% to 407.36 lakh carats for cut and polished diamond.

6.0 Competitor Analysis

6.0.1 About Tanishq

Tanishq is one of the pioneers in branded jewellery and largest jewellery brand in India founded in 1995 AT Hosur, Tamil Nadu. It is a part of Titan Industry-group endorsed by the Tata Group. It has 118 stores in 76 major cities of India and has a market share of 50% in branded jewellery.

Tanishq product lines consist of the following:

Tanishq Diamonds

Tanishq Gold

Tanishq Platinum

6.0.2 Segmentation

Tanishq has segmented its consumer based on the three types. They are segmented as follows:


Tanishq exemplifies behavioral segmentation as it portrays purchase occasion based on festival like diwali, akshaya, tritiya, karva chauth. It also segment its jewellery as everyday wear, special occasion wear and wedding wear like "Lightweight Colours" an everyday wear, "Enamel and Diamonds"

Psychographic and Profile

It also shows profile and lifestyle segmentation as it segments its jewellery called "Collection G" called "nine-to-five jewellery". It also has collection called "All Day Diamonds" which are affordable and can be worn throughout the day 24 *7. It also tries to capture the different designs in new region like Bengali design in Delhi, Kerala style in Tamil Nadu etc

6.0.3 Targeting

Differentiated: Different marketing mix are applied for each segment.

Customized: Different marketing mix are applied for each customer.

Differentiated marketing and customized marketing strategies are used. Its design was created for niche market for elite Indians but then concentrated on mass marketing. It targets women who are modern yet grounded and men who are above 25 years.

6.0.4 Positioning

Uses product repositioning and act as a brand for elite people in India of international brand but then re-positioned in the market as "Jewellery for adornment. Tanishq has come up with "Aamra" mix of western and traditional .It position the brand which provides trust and guaranteed purity.

6.0.5 Communication Strategies

Tanishq Pull Strategy


To create brand equity it uses the approach of 360 degree. They focus on celebrity endorsement as people in India are highly obsessed with the celebrity and create a huge impact and associate with events like marriage , diwali,raksha bandhan.

Print advertisement

Tanishq target the leading woman magazine like "Femina", "Filmfare" which are very popular in India and other leading newspaper like "The Times of India" and such advertisement are frequent during occasions and it is quite seasonal.

Tanishq Push Strategy

Sales promotion and associating with Events

Tanishq has a tie-up with Bollywood movie like "Paheli". Promotion like "Free Gold Coin Campaign", then "Freeze Your Gold Price "during the festival of Dhanteras" are used.

Public Relation

Recently they have organized "Diamonds of Class" which target woman who are bold and the beautiful where Tanishq diamond complementing her lifestyle.

Direct marketing

Internet Sales and catalogues are used.

Offers and Discount

It offers and discount in festive occasion like Diwali, Mother's Day, Valentine Day, Environment Day and also target specific segment of working woman by coming up with the collection called " Tanishq Collection-G" .It also organizes joint promotion with L'Oreal and Wills Lifestyle.

6.1.1 About Gili

Gili is a part of the Gitanjali Gems Limited (GGL).Gili is founded in 1994 and it is symbolizes youth, love and emotions has its headquarter is based at Mumbai. It is known for producing a heart-shaped diamond of 0.03 carat and 25 patented patterns. It has 3000 retail outlet in India and contributes a share of 40% in an organized jewellery market. It has a market share of 8.3%.

Gili has collection of





Mens Collection


6.2.2 Segmentation

Gili segment based on the following:


Gili has segmented based on purchase occasion like Valentine, wedding, birthday, anniversary and has "Valentine ","Mangalsutra","Traditional" collections.

Profile and Lifestyle

Gili again has "work" collection .They have the "Men" collection and have jewellery based on the income like segmenting the jewellery with price.

6.2.3 Targeting

Gili follows the differentiated and mass marketing. It creates a sense of high-quality studded diamond of contemporary design. They have the collection for working woman in particular. They have targeted even the men with "Men's collection".They target in the age group of 15-30 years of age.

6.2.3 Positioning

Image repositioning its brand as a brand which represents trust by adhering to authentic certification, quality and reliable by keeping standard practices .It creates a differential advantage by positioning as a brand that created the first 0.03 karat heart-shaped diamond the smallest in the world.

6.2.4Communication Strategies

Gili Pull Strategy


Bipashu Basu is the brand ambassador and endorses the products by associating it with events like" Valentine day".


Advertising in leading newspaper like "The Telegraph", "Times of India" and advertising in leading magazine like "Filmfare".

Gili Push Strategy


Indians are fascinated by the celebrities so they organized star visits and sponsoring films like in "Vivaah","Krissh" .They also sponsored the "Lakme Fashion Week" and "Femina Miss India Contest".

Joint- Promotion

It is done through retailer like "Shopper's Stop".

Direct-mailers and catalogue

They employ this strategy and received a huge feedback and have increased the sales enormously.

7.0 Launch of Cadbury Gem in India

7.0.1 Communication Objectives

To generate brand awareness of 60% of Cadbury Gem to both men and women who are in the age group of 25-40 by March 2012.

To create a brand image that can be trusted and caters "Personalized Service" in terms of design.

To change people's attitude that jewellery can also be worn by men often.

7.0.2 Communication Strategy

Pull strategy will be used to create awareness.

To create brand image of trust which caters "Personalized Service" profile strategy will be used.

Communication appeal will be more of emotional like the experience associate with the festive season and events and the benefits and a bit of rational like the price and the quality it will offer. The perceived risk will be financial risk.

7.0.3 Segmentation

Cadbury Gems will segment based on


It will be based on purchase occasion, purchase behavior, usage segmentation.

Purchase occasion

As done by the contemporary, it will make use of occasions like "Wedding Anniversary", "Birthdays" and important Indian festival like "Raksha Bandhan","Holi". It will create collection such as "Festive Collection" suitable for any festival and "All in One Occasions" collection.

Purchase behavior

It will target the innovators who are ready to take risk in buying the product as soon as the launch is done.

Usage segmentation: It will target heavy as well as light user i.e women who are already using and men who just contribute 20% of the jewellery purchase.

Belief and Values

It will target men and women who believe in living and celebrating life.


It will used lifestyle and personality segmentation.


It will target women who are sophisticated as well as ordinary women of simple lifestyle. For men, it will target metrosexual men and has collection called "Exclusive for Men".


It will aim at people who are innovators who accepts the new product soon and who are expressive where Cadbury Gems portrays who they are. It will have collection called "Itz Me".

Profile: It will use age as criteria to segment.


It will target men and women who are in the age group of 25-40.

7.0.4 Targeting

It will use differentiated and customized marketing. It will design its jewellery for men and women in the age group of 25-40 years with specified design of their choice. The customer can come up with its pattern and specification of their choice and it will take minimum lead days of 10 days to deliver to their customer.

7.0.5 Positioning:

Perceptual Map:

High Price


Gitanjali Gems Limited

Reliance Jewellery

Wide Product Range Cadbury Gem Narrow Product Range


Low Price

Fig: Perpetual Map

It will use tangible repositioning for the men's collection as it will focus on men's section by creating "Exclusive for Men" Collection. For the women's section it will use product repositioning by introducing "Itz Me" collection, "All in One Occasions", "Festive Collection".

Differential advantage will be achieved by positioning as a trusted brand which provides "Personalized Services" employing designers who can give feedbacks about the design the customer comes up and suggest expert ideas to the customer effectively and efficiently.

7.0.6 Message

The aim of the campaign is to create brand awareness among the women who are the primary target and also the secondary target men both in the age group of 25-40 years and also to create an impact as a brand that cater the customer's needs by giving "Personalized Service" to those customer who are loyal to "Cadbury Gems".

7.0.7 Launch Date

The advertising campaign will run throughout the year starting from April 2011 till the end of March 2012 giving main focus during the festive season like November, December as these are the season where major festivals occur in India. It is expected to launch its product in April 2012.

7.0.8 Budget

£20 million will be allocated as people are not aware of the products therefore huge amount needs to be invested in campaigning and advertising.

8.0 Integrated Communication Plan

Integrated Communication plan plays an important role to pass the same message to the targeted audience in a consistent way so that they are not confuse, mislead if it employs different communication channel without integrating . It will used both above the line and below the line strategy and profile too.

8.0.1 Above the line

Advertising on TV

Advertisement will be put on popular channel like "Sony" ,"Star Plus", "Zee TV","C olors" where popular soaps and serial are transmitted.


Impact large audience in a short span of time and helps to increase word of mouth.

Short lead time

Target the women of age 25-40 and put the ads in between popular soap and serials like"Uttaran","Jyoti","Balika Vadhu".

Frequency of the Ad will be like 7-8 times in the channels mentioned above.

Magazines and Newspaper

Advertisement will be placed on leading magazine like "Woman Era", " Outook"," Reader's Digest" and on leading newspaper like "The Hindu","The Economic Times" as these are the magazines read by corporate men and women.


The ad will remain as long as the magazine and newspaper are kept.

Target both the men and women through this channel of communication

Credibility of the information is high.

Metrosexual men and corporate consumer youth will be targeted easily.

FM Radio

Short Ad with be played in major FM station like "Radio City" and "Radio Mirchi" and "Meow".


Low cost.

Can reach large consumers faster with short lead time and Ad will be placed more around 9-11 A.M and 5-7 P.M the working hours of most of the company and timing for college goers too.

Medium to high salaried people, youth who are fashion conscious of both the sexes will be reached easier.


15 X20 billboards will be placed especially near the mall, cinema -theatre, plazas and area where colleges and companies are more.


Comparatively involves lower cost and frequency of exposure is high.

Information and persuasion can be done effectively and efficiently leading

to brand awareness.

8.0.2 Below the line

Direct Marketing

Mails will be sent to such customer about the designs and new collection. It will target the loyal and frequent buyer of "Cadbury Gem"

by giving loyalty card and points to those regular buyer. Customer which

exceeds 1000 points will be given free "Personalized Service" giving expert

expert advice to the design the customer has come up.


It will give good return of investment of if clear database is maintained

about the customer.

After achieving the brand awareness of 60%, direct marketing can be used to

create profile strategy projecting as a brand of trust and customer oriented.

Sponsorship and Exhibition

It will sponsor and associate with "Bollywood Movies" to showcase its collection. It will also sponsor the major ramp shows held "Lakme Fashion Week "and events like "Femina Miss India Contest", "Zee Cinema Awards" and organize exhibition where popular male celebrity "John Abraham" will be the brand ambassador


Helps in rectifying the customer perception and beliefs.

To attract new customer and attain new customer.

Chances of face-face meeting with the potential customer thus enhancing

relationship building.


It will make use of the social networking sites like "Facebook","Twitter" and "

"Orkut" which are quite popular to promote their products.


Relatively cost-effective.

Information can be spreaded like wildfire thus increasing word of mouth.

9.0 Launch of Cadbury Gem in the UK Market

9.0.1 Communication Objective

To create an awareness of 5% among the non-resident Indian in the UK market by March 2012.

9.0.2 Communication Strategy

To create an awareness of 5% among the non-resident Indian in the UK market by using both push and pull strategy.

9.0.3 Segmentation

Cadbury Gems will segment based on behavioral,psychographic,lifestyle and personality as done in the domestic market. It will adopt the same strategy.

9.0.4 Targeting

The strategy of targeting remains the same as in the domestic market i.e differentiated and customized.

9.0.5 Positioning

Intangible positioning will be used for the men by introducing "Western Men's Collection". Product positioning will be used for women and it will introduce "Elegant Collection "and will position as a brand that provides special attention on design and pattern on occasion of the wedding.

9.0.6 Message

Its aim is to create awareness in the same sector and also to create a brand image which provides special assistance for wedding jewellery by introducing its "Sophisticated Jewellery for Wedding" with expert advice on design and patterns.

9.0.7 Budget

Only £10 million will be invested in campaigning and advertising.

9.0.8 Above the line

It will use advertising on TV on the same channels as in domestic market ,advertisement will be displayed on magazine like "Marie Claire","Vogue" and "Cosmopolitan" exclusively.


NRI in UK invest their time and money on such hi-fi magazine and moreover they find the information credible.

9.0.9 Below the line

It will use public relation like exhibition, sales promotion and e-media.


The exhibition will be especially for the NRI like "Sophisticated Jewellery for Wedding" with expert advice on design and patterns, "Western Men's Collection" for men and ""Elegant Collection " for women and letting the celebrity like the former Miss World 1995 "Aishwarya Rai Bachchan" the brand ambassador of "Cadbury Gem" in such exhibition as glamour and glitz business impacts NRI in a huge way.


Creates awareness more as compared to other form of media. It gives a direct feedback from potential customer, face to face communication and it is an ideal way to attract new customer when new products are launched.

Sales Promotion: Offer like free accessories i.e ray-ban sun glasses, branded make-up kit and discount of 20% will be given to customer who buys £420 of jewellery.


It will attract the new customer and may boost up the sales when the product is too new in the market.

E-media : It will make use of the social networking sites like "Facebook","Twitter" only as "Orkut" is not in use by the NRI. The reason for using this is that majority of the NRI are computer savvy..

9.0.10 Cultural Influences for UK launch

A niche market will be used to target the non-resident Indian (NRI) and there will not be huge impact of cultural influence but in terms of jewellery design it should be more sophisticated and elegant and a mixture of Indo-Western.

9.0.11 Assessing Advertsing Effectiveness


Focus group and concept testing can be used before the launch.


Enquiry test, feedback, surveys can be used to test the recognition and recall test. This will give an idea whether the customer has accepted the product or not, if yes how much, if not where it has to give focus.

11.0 Conclusion

"Cadbury Gem" jewellery will be launched in both the domestic i.e India and international market i.e UK keeping into consideration the various strategy and tactics that needs to be considered while launching in different market. 20million INR will be spent in the domestic market in advertising as it is competing with already established jewellery brand" Tanishq " and "Gili". It will allocate only £10million INR for the international market as the objective is to create awareness of only 5%.


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