CHAPTER II MARKETING ASPECT
I.
MARKET ANALYSIS The ARC Jewelry Store is specifically targeting women in the Sta. Lucia Grand East Mall. Women and men in the workplace, as well as women and men that are sociable in the evenings (i.e., events, parties, etc.) are the primary focus for the ARC Jewelry Store's high fashion gemstone products. We chose this area as it is situated in Marcos Highway cor. Felix Avenue, San Isidro, Cainta, Rizal. Also, Sta. Lucia Grand East Mall serves as one of the nation’s most affluent and densely populated areas.
Women can appreciate how easy it can be to change their look with jewelry without the expense of purchasing a whole new outfit.
II.
MARKET SIZE There are about 250 firms in the country that are engaged in the jewelry industry, employing a pool of more than 100,000 workers. Small and medium-scale jewelry enterprises hold about 50 percent of t he industry, while the top 10 largest jewelry chains and manufacturers hold less than 25 percent. a.
Industry Participants Major participants include Karat World, Unisilver, Oro China and many more. Competitors:
Karat World - Fine jewelry for the Working Woman of today! Everyday
Jewelry with a wide assortment of Diamond and Gold Engagement and Wedding Rings.
Goldenhills Jewelry - offers a large selection of fine jewelry made of gold and
set with diamonds, pearls, and other semi-precious stones.
Unisilver - fuses fashion polished 925 sterling silver, it caters to men, women and teenagers who love and breathe fashion and are in tune with the latest trends.
Aurum by Tambunting – this owned by Tambunting Pawnshop and o ffers different kinds of jewelry
b. Market Segments
The Sta. Lucia Grand Mall caters the Cainta area, Marikina City area, Pasig area, and Antipolo Area. It encompasses roughly about 1,000,000 residents earning an average P12,000 per month.
III.
MARKET TRENDS One of the most trendy and fashionable types of jewelry on the market is gemstone jewelry. Gemstone jewelry is made in various designs, colors, and styles with a design, which contains one or more beautiful gemstones as a focal point. While various types of gemstone jewelry are popular, there are different gemstone jewelry trends each year. One year it may be considered extremely fashionable to wear ruby earrings while the next year rubies may be out. • The latest red carpet fashion trend is pear shaped, gemstones drop earrings. Tacori is at
the front line of style. These earrings are versatile and can go from a day to night, from jeans and ballet flats, to a sexy little black dress. • Amethyst is another popular gemstone especially in the fall. It is a great accessory to any
ring or necklace. Considered to be a precious stone, amethyst ranges in shades from lavender to an intense, deep purple. • Another trendy gemstone is the moonstone, a gorgeous, translucent gemstone in shades
of peace, blue, pink, and white. Moonstone jewelry continues to be all the rage. • Rutilated Quartz is made from needles of the min eral known as rutile which is embedded
in crystal quartz. Rutilated Quartz is known to ease depression. Gemstones of this type are often found in various types of jewelry from necklaces t o bracelets. • Chandelier earrings are becoming increasingly pop ular. These earrings are an exotic,
Indian inspired design and appeals to women all over the world. Anyone would feel absolutely radiant when wearing this type of jewelry. • Big, bold, and colorful jewelry is among the gemstone jewelry trends. Black j ewelry with
large gemstones is very popular amongst various individuals today. IV.
TARGET MARKET We are targeting women and men in the Cainta area, Marikina City area, Pasig area, and
Antipolo Area. This is a sophisticated community and there is no doubt that the community is the centerpiece of stylish shopping. In addition, since women are the primary end consumers of jewelry, it's natural for o ur ARC Jewelry Store to spend most of its marketing resources targeting this largest market.
V.
MARKET NEEDS The jewelry we will market will meet the needs of woman who are looking to dress up their outfit with quality gemstone jewelry. And also for the men who loves jewelry as there accessories. The jewelry will be suitable for both formal and informal events.
VI.
UNIQUE FEATURES OF THE PRODUCTS AND SERVICES ARC Jewelry Store offers customer to customized piece designed for them onsite. And in terms of services, we offer 3 hours’ time frame to finish the customized jewelry.
VII.
DEMAND AND SUPPLY ANALYSIS a.
DEMAND ANALYSIS
A total of 300 respondents took part on the survey conducted by the proponents of this business. After gathering and recording all the data, it shows that 75% of the respondents belong to the age brac ket of 18-23 years old. The result also shows that 65% of the respondents are female while 35% are male. About 85% are single while the other 15% are married. With regards to their monthly income, most of the respondents belongs to the income bracket of P10,000-15,000. This also indicates that most of them are young generation who comprise about 90% of the sample size. About 65% of the respondents are willing to spend up 10% of their income for jewelry products mostly for women, while 15% are still undecided to spend their income in buying jewelry products an d 20% of it don’t want to spend their income for jewe lry. Among the products and services offered by ARC Jewelry Store, the respondents also consider the price and what kind o f the jewelry as the main factors in buying jewelry.
b. SUPPLY ANALYSIS
Based on the data gathered from the survey of jewelry store in Philippines, it shows that about 250 firms in the country are engaged in the jewelry industry. Most of the seller of jewelry give priority in providing quality service, affordable process and good advertising/production in order to stay competitive in the service market .
VIII.
MARKETING STRATEGY
The ARC Jewelry Store will provide high quality gemstone jewelry to men and women. Other jewelry retailers have lagged in this particular market by not concentr ating on providing a large variety of colors, sizes and designs. We intend to leverage our expertise, product offering and marketing strategy to increase our customer base while driving sales and profit.
IX.
SWOT ANALYSIS
The SWOT analysis provides us with an opportunity to examine the internal stre ngths and weaknesses the ARC Jewelry Store must address. It also allows us to examine the opportunities presented to The ARC Jewelr y Store as well as potential threats. A. Strengths • Strong relationships with suppliers that offer credit arrangements, flexibility, and
response to special requirements. • Excellent and knowledgeable staff, offering personalized customer service. The ARC
jewelry sets itself apart from the competition by providing customized jewelry designs while the customer waits. • Great retail space with an attractive, inviting atmosphere. • The owner keeps overhead low by purchasing directly from loc al suppliers and self-
creating the majority of the merchandise. B. Weaknesses • Access to additional operating capital. • Revenues in the industry are cyclical; the majority of revenues are earned during the
fourth quarter and 25% are earned in the month of December. • Owners are climbing the retail experience curve .
C. Opportunities • Increase in higher income of target market. • Addition of other jewelry related products and services.
D. Threats • Local and emerging competitors. • Shoplifting. • Sales tied to economic growth.
X.
4P’s of MARKETING
A. PRODUCT
The ARC Jewelry Store will specifically carry gemstone jewelry that is designed for the professional and sociable man and woman. Our selection will range in various colors, sizes and styles to meet the unique needs of the everyday man and woman. Here are the lists of product offered by ARC Jewelry Store.
CORPORATE TOKEN
DIAMOND JEWELRY
ENGAGEMENT RINGS
GOLD JEWELRY
SILVER JEWELRY
PEARL JEWELRY
PINS, MEDAL NAMEPLATE
SCHOOL RINGS
WEDDING RINGS
FRIENDSHIP RINGS
EARRING
PENDANT
NECKLACE
B. PRICE The ARC Jewelry Store will use a dynamic pricing model. All jewelry will be clearly marked with prices - - however, our pricing policy will allow for some flexibility. In order to increase sales revenues, our sales representatives will be authorized to offer a maximum predetermined discount to extend to their customers. This incentive will provide the customer the perception of ext ra value and a bargain purchase. Since we are operating from a shop and not an online store we will need to maintain somewhat reasonable and affordable prices. Some items will sell as low as P200, but most of the products will be priced from P200 to P20,000. There are a few pieces that will sell for P20,000 to P100,000. C. PROMOTION Our primary promotion and advertising strategy will be word-of-mouth. 1. WEBSITE
Due to the nature of this business being a mall shop there are no plans to develop a website during the initial startup of the business. We will develop a website after the first six to twelve months which will be an informational site and will not list our products. The website will have our location, fashion related articles and announcements of new products. 2. PRINTS ADS
Advertisement on the local leading newspaper and magazines will be utilized to further aggressive campaign of the business to penetrate the market. 3. LEAFLETS
To be used in introducing and informing the public about the existence of the business “ARC JEWELRY SHOP” which includes the location map and the
services offered. D. PLACE nd
The ARC Jewelry Store will be located in 2 floor near Watson of Sta. Lucia Grand East Mall. It easy recognize because of t he unique store façade and by the store logo.
XI.
MARKETING PROGRAM Our marketing program will primarily consist of our highly visible and centrally located kiosk in the Sta. Lucia Grand East Mall location.
1. DISCOUNTS ARC Jewelry will offer 10% discounts in cash basis. And also will offer discounts for seasonal occasion. 2. CREDIT CARD and DEBIT CARD PAYMENTS ARC Jewelry will offer credit cards and debit cards by modes of payment. 3. SALES STRATEGY Because ARC Jewelry Store is a new business, we understand that we will have to prove our Company's worth to customers to earn their business. As equally important, we need to sell both the Company and products.
We will approach sales from a salesperson-customer relationship basis. All sales representatives will be trained and encouraged to assist customers in a personal and engaging manner. By gathering key customer information and seeking design feedback on our products will assist us in the following ways: • Targeting our marketing efforts more effectively. • Developing product offers that will increase sales. • Training and developing sales representatives in order to effectively
service the customer. • Increasing awareness of our ARC Jewelry Store within the jewelry retail
consumer marketplace. • Developing future sales opportunities that allow for continued growth of
the business.
