jewellery Product Management Report

GEMS AND JEWELLERY INDUSTRY A Study on KGK Group

Submitted to: Dr. M.R.Suresh

by

Section B Group 7 Sahil Sinha (11047) Snigdha Chitranshi (11051) Somrhita Chakraborty (11111) Vismaya Mysore Naganna (11120) Rishi Kumar Gandhi (11164) Sahil Kathpal (11166)

Soumya Siddhartha Rout (11172)

Contents GLOBAL GEMS AND JEWELLERY MARKET .............................................................................................. 3 INDIAN GEMS AND JEWELLERY SECTOR ............................................................................................. 3 TRENDS FOR GEMS AND JEWELLERY IN INDIA .................................................................................... 4 CHALLENGES FACED BY INDUSTRY..................................................................................................... 6 THE INDIAN ADVANTAGE ................................................................................................................... 7 THE KGK GROUP .................................................................................................................................... 9 INTRODUCTION.................................................................................................................................... 9 PRODUCT CATEGORY ........................................................................................................................ 10 KGK DIAMONDS .......................................................................................................................... 10 KGK COLOR STONES.................................................................................................................... 10 KGK JEWELLERY ......................................................................................................................... 11 INDIAN DOMESTIC OPERATION ......................................................................................................... 11 ASSUMED DECISION MARKETING CONTEXT ..................................................................................... 12 OPPORTUNITY IDENTIFICATION............................................................................................................. 13 REASONS WHY PEOPLE BUY GOLD AND DIAMOND JEWELLERY ....................................................... 13 COMPETITION IN MYSORE CITY ........................................................................................................ 14 PIC (PRODUCT INNOVATION CHARTER) ............................................................................................... 17 IDEA GENERATION ................................................................................................................................ 19 IDEA GENERATION TECHNIQUES ....................................................................................................... 19 BRAINSTORMING .......................................................................................................................... 19 BRAIN WRITING............................................................................................................................. 19 PRODUCT CENTERED TECHNIQUES: ................................................................................................... 20 ATTRIBUTE ANALYSIS ................................................................................................................... 20 ATTRIBUTE LISTING ...................................................................................................................... 20 SCENARIO ANALYSIS ......................................................................................................................... 21 IDEA SCREENING ................................................................................................................................... 25 CATEGORY SCREENS AND INTERNAL STRENGTH SCREENS TO ZERO IN ON THE FINAL IDEA: ............. 25 CONCEPT GENERATION ......................................................................................................................... 27 PRODUCT CONCEPT ........................................................................................................................... 27 NEED ............................................................................................................................................. 27 FORM ............................................................................................................................................ 28 TECHNOLOGY ............................................................................................................................... 28 BENEFITS ...................................................................................................................................... 29 CONCEPT SCREENING ............................................................................................................................ 30 THE SCORING MODEL ....................................................................................................................... 30 REVISED PIC ......................................................................................................................................... 31 IRP (INFORMATION REQUIREMENT PLANNING) .................................................................................... 32 CONCEPT SHEET FOR KGK JEWELLERY ................................................................................................ 33 CONCEPT STATEMENT....................................................................................................................... 33 HIGHLIGHT OF THE CONCEPT ............................................................................................................ 33 WHO IS IT FOR? ............................................................................................................................. 33 KEY SELLING POINTS: .................................................................................................................. 33 PRICING: .......................................................................................................................................... 34

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BENEFITS OF THE CONCEPT ........................................................................................................... 34 CONCEPT EVALUATION ......................................................................................................................... 35 SURVEY OF THE CUSTOMERS ............................................................................................................. 35 ANALYSIS OF THE SURVEY ................................................................................................................ 36 INTERVIEWS ...................................................................................................................................... 37 OBSERVATIONS ................................................................................................................................. 38 BUYING INCENTIVES ............................................................................................................................. 39 ZODIAC SIGNS AND STONES .................................................................................................................. 40 DESIGN .................................................................................................................................................. 46 CONTRIBUTIONS OF DESIGN IN PRODUCT DEVELOPMENT PROCESS ................................................. 46 DESIGN FOR DIFFERENTIATION..................................................................................................... 46 DESIGN TO MEET CUSTOMER NEEDS............................................................................................ 46 DESIGN FOR SPEED TO MARKET ................................................................................................... 46 PRODUCT DESIGN ......................................................................................................................... 47 PROTOTYPE DEVELOPMENT .............................................................................................................. 47 FOCUSED PROTOTYPE ................................................................................................................... 47 COMPREHENSIVE PROTOTYPE ...................................................................................................... 47 PRODUCT USE TESTING ......................................................................................................................... 48 DECISION IN PRODUCT USE TESTING ................................................................................................ 48 STRATEGIC LAUNCH PLANNING ............................................................................................................ 50 STRATEGIC PLATFORM DECISIONS ................................................................................................... 50 TYPE OF DEMAND SOUGHT........................................................................................................... 50 PERMANENCE................................................................................................................................ 50 AGGRESSIVENESS ......................................................................................................................... 50 COMPETITIVE ADVANTAGE .......................................................................................................... 51 COMPETITIVE RELATIONSHIP ....................................................................................................... 51 SCOPE OF MARKET ENTRY ........................................................................................................... 51 IMAGE ........................................................................................................................................... 51 THE TARGET MARKET DECISION ...................................................................................................... 51 END USE ....................................................................................................................................... 52 GEOGRAPHIC AND DEMOGRAPHIC ................................................................................................ 52 BEHAVIORAL AND PSYCHOGRAPHIC............................................................................................. 52 MICROMARKETING ............................................................................................................................ 52 TARGETING BY INNOVATION............................................................................................................. 53 IMPLEMENTATION OF THE STRATEGIC PLAN ......................................................................................... 54 LAUNCH TACTICS.............................................................................................................................. 54 PERSONAL SELLING .......................................................................................................................... 54 MARKET TESTING ................................................................................................................................. 55 SIMULATED TEST MARKET ............................................................................................................... 55 LAUNCH MANAGEMENT OF KGK JEWELLERY STORE .......................................................................... 56 STEP 1: SPOT POTENTIAL PROBLEMS ................................................................................................. 56 STEP 2: SELECT THE CONTROL EVENTS ............................................................................................. 56 STEP 3: DEVELOP CONTINGENCY PLANS ........................................................................................... 57 STEP 4: DESIGN THE TRACKING SYSTEM ........................................................................................... 57

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Global Gems and Jewellery Market According to CARE Research, the US is the world’s largest market for jewellery accounting for an estimated 29% of the world jewellery sales in 2008.The US is followed by China (11%) , India (10%), the Middle East (9%) and Japan (8%) as the biggest consumers. In Europe, the UK(4%) and Italy (5%) are the largest consumers, and Italy is also one of the world’s largest jewellery fabrication centres. These seven key markets account for about 80% of the total worldwide sales. Of total global sales of US$146 billion in 2005, diamond-studded jewellery was the largest segment, representing 47% of total jewellery consumption. By type of jewellery, diamond-studded jewellery accounted for the largest share of the global jewellery market, followed by plain gold jewellery (42%).

Indian Gems and Jewellery Sector According to CRISIL Research, the Indian jewellery retailing market is estimated at Rs. 973 billion as of 2009-10, contributing around 6% of the overall retailing industry in India. This makes jewellery the largest contributor of India’s overall retail industry. Within the jewellery retailing market in India, the share of gold jewellery is estimated to be around 80%, according to CRISIL Research. The two major sub segments within jewellery are gold (22 carat and above) and diamonds, with the former constituting of 80% of the value of jewellery consumption and the balance 20% comprising of diamonds(15%) and gemstone jewellery. The overall size of domestic Gems and Jewellery sector is pegged at Rs. 870 billion as of 2008-09 according to a FICCITechnopak study and is expected to grow up to Rs. 1,832 billion by 2014-15.

In India, organised retailers account for a mere 4% of the total jewellery retail market. There are about 15,000 vendors across the country in the gold processing industry, with over 450,000 gold smiths spread across the country. There are also more than 6,000 vendors in the diamondprocessing industry.

Gold is consumed most in south (37%), west (32%), north (18%) and east (13%) in that order. In 2009, total Indian gold consumption reached US$19bn or Rs. 974 billion equivalents at the end of

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2009. Over the past decade, this has increased at an average rate of 13% per year, outpacing the country’s real GDP, inflation and population growth by 6%, 8% and 12% respectively.

Trends for Gems and Jewellery in India The growth outlook for the gems and jewellery sector in India is stable and CARE Research expects the domestic industry to grow at a CAGR of 10-12% up to 2015. There is a shift in consumer preference to low priced diamond jewellery which is about 50% cheaper than normal diamonds and also cheaper than pure gold jewellery. Consumers are gradually preferring diamonds because of the guaranteed buy-back schemes, transparent written pricing and, most importantly, third-party certification. Branding and organized retail share will grow in urban markets and the focus on rural markets will increase. According to CARE Research, family owned businesses will need to move towards greater degree of professionalism and trust on the neighbourhood jeweller will be replaced by the hallmarking and certification of jewellery. Apart from that particularly in jewellery, the following trend shift is observed:

1. Gold Jewellery which traditionally generates its demand from investment viewpoint and traditions now is regarded as a fashion accessory by the young population.

2. The demand that used to peak during wedding and festive seasons, now increasingly getting evened out throughout the year for regular wearing and gifting purpose.

3. Trend is shifting from pure gold-22 carat in traditional designs. More and more now low carat and lightweight jewellery is preferred. Moreover, modern and contemporary designs are finding their way.

4. Traditionally purchase from neighbourhood jewellers used to dominate purchases, which lacked transparency. Now there is growing preference for brands, retail store and e-retailing. There is an introduction of hallmarking and certification.

5. Gold jewellery used to dominate. Now there is an increased preference of white gold, platinum

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and diamond studded jewellery. Even imitation jewellery is gaining acceptance.

6. Traditionally gold jewellery is sold on prevailing gold price plus labour charge. Now branded players sell on fixed price basis.

Classification

1. Polished Diamonds: India is one of the best markets in the world in the polished diamonds for its world-class quality of diamonds as well as exquisite cutting skills. Over 83 per cent of India's Gems & Jewellery cut and polished diamonds account for exports. Jaipur and Surat are famous as world class polishing and designing centers.

2. Gem Stones: This category refers to the stones other than diamonds; these stones come under two basic categories namely, precious stones and semi-precious stones. There is a huge demand for these gemstones especially of Sapphire, Emerald and Ruby.

3. Gold and Jewellery: This category represents the gold and Jewellery, which is used in the manufacturing of various ornaments.

4. Synthetic Stones: Synthetic diamond is diamond produced through chemical or physical processes in a laboratory. Like naturally occurring diamond it is composed of a three-dimensional carbon crystal. Synthetic diamonds are also called cultured diamonds. Synthetic diamond is not the same as diamond imitation, which can be made of other material. This is an upcoming market in India.

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Challenges faced by Industry 1) Uncertainty in supply of raw material - The diamond pipeline has been witnessing a change since

the early years of this decade. De Beers’ monopolistic hold on the supply chain was loosening and suddenly, a host of middlemen had access to an increasing share of rough distribution straight from mines all over the world. Since then, De Beers’ rough distribution arm, Diamond Trading Company’s (DTC), share of rough diamonds sold has declined to about 40-45% from about 85%. 2) Unorganized market - 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% over the next four years. According to market reports, with its consumption pegged at nearly 20%, India remains world’s largest gold consumer and this share is expected to grow further. Going ahead the organized Jewellery sector is forecast to account for a significant share in the country's total Jewellery market. 3) Rising Gold Prices - Gold prices have doubled over the past three years. Such a sharp rise is usually associated with risky investment assets such as equities. The recent rise in gold prices may not be the steepest like in the 1980s. During this decade itself, gold prices have risen almost five-

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fold. This has affected the overall cost of Jewellery for the end consumer, thereby reducing his purchasing power. The sizzling gold price is one of the reasons for drop in Jewellery sales.

4) Competition from China - China is rapidly gaining ground in the diamond trade, unsettling many Indian diamond traders.

The Chinese government is investing a huge country has struck multi-billion dollar deals with various African countries, to build their infrastructure in return for resources including rough diamonds. With growing domestic demand China is building its diamond cutting and amount of money in African countries.

In exchange for medicines, oils, industrial metals and delivery of infrastructure projects, China is importing rough diamonds from Angola, the Democratic Republic of Congo and other African countries.

The Indian Advantage India is comfortably placed against its competitors in terms of cost of production. India boasts of one of the lowest per carat diamond cutting and polishing costs (at around USD 10) thereby leading to comparatively low cost jewellery, and hence amplifying the overall consumption.

Additionally, growing importance of India in the global gems and Jewellery market has opened a lot of opportunities for exports. The country is rapidly becoming a major exporter of gems and jewellery to various developed and developing countries, including the US, the UAE, Hong Kong and Belgium. The Indian gems and Jewellery exports sustained its positive momentum even in the times of recession.

Currently the Indian gems and Jewellery market remains highly fragmented, but is rapidly transforming into an organized sector. Additionally, apart from diamond Jewellery, gold consumption is also on a rise and India is expected to capture a dominant share in global gold consumption in 2012.

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Going ahead, the organized Jewellery sector is expected to account for a significant share in country's total Jewellery market.

GOLD The gems and diamonds industry contributes over 15 per cent of India's total exports. The industry is predominantly divided into two segments: Gold Jewellery and fabricated studded Jewellery (diamonds as well as gemstone studded Jewellery)

DIAMOND The Indian diamond trade generates over US$ 4 billion per annum in exports, its large labor force is integral to catapulting the country as the biggest diamond cutting center for small roughs. India was known to have diamond mines many centuries ago and has continued to maintain its tradition of diamond cutting with an estimated 1 million processors handling over 57 per cent of the world’s rough diamonds by value. 

11 out of 12 stones (diamonds) set in Jewellery are cut and polished in India (processing is done on rough diamonds in full range of sizes and qualities, including stones larger than 10 carats).



India's share in this sector is about 80 per cent of the world market



India also accounts for 90 per cent of the volume of diamonds processed in the world.



India employs over 90 per cent of the global diamond industry workforce.

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The KGK Group Introduction The KGK Group is a global corporation based in India with fully integrated operations in Diamonds and Colored Gemstones. KGK is known worldwide for its superlative products, exemplary quality, international standards, and its impeccable reputation for customer service.

From procurement to manufacturing and from marketing to retailing, KGK is present across the full value chain of the industry with offices spread across the world. KGK is a DTC Sight holder for India and South Africa and has a global marketing reach with manufacturing units in India, China, Hong Kong, South Africa and Russia. The company has made forays in retail marketing and has opened showrooms in India, China, Hong Kong and Middle East. The foundation of the KGK Group was laid in the year 1905, when Shri Keshrimalji Kothari started trading in colored gemstones simultaneously from India and Burma. Assisted by his son, Shri Ghisilalji Kothari, the business expanded from Jaipur to Chennai, and then to Hong Kong. By the 1970s with new leadership at the helm of the group the business operations diversified into diamonds

and

to

new

global

locations

such

as

USA,

Thailand,

and

Japan.

From trading, the group expanded its interest to manufacturing and set up manufacturing units in India, China, Hong Kong, South Africa and Russia. By 1997, the company achieved the much coveted status of a DTC Sight holder for India. It continued its expansion in global markets coming closer to its customers. Offices were opened in UAE, Germany, Spain, London and the foray into retail marketing was initiated. Quality initiatives bore fruit with the award of the ISO 9001 for its operations

and

it

achieved

recognition

9

through

various

awards

for

exports.

Product Category KGK Diamonds KGK’s Diamond Operation started in the year 1969 with Diamonds trading and Diamond manufacturing activities began in 1982. Initially KGK was sourcing its Rough Diamond requirement from Antwerp the world’s Diamond Capital. Highly skilled assorters assort and grade the Polish Diamonds into various lots as per their Cut, Color, Clarity and Size. All assorted goods pass through strict quality control measures as per KGK's laid down assortment standard's before they are sold all over the world.

KGK leads today in diamond trading and manufacturing around the globe. It has marketing offices in all important cities in the world, and has set up manufacturing units in India, Thailand, China, South Africa and Russia. These factories have modern machines for diamond cutting and polishing operated by trained craftsmen. The stones are then assorted and graded into different lots as per their cut, color, clarity and size.

The group sources its diamonds and color stones from different parts of the world through its offices in Antwerp, London, Russia and South Africa. The group enjoys the status of DTC Sight holder for India, and South Africa.

KGK Color Stones A color stone division of the KGK Group has various offices across the world. Through his vision and a team which parallels no other, Precious Trade Inc., New York has become one of the leading suppliers of cut and polished precious stones in the USA. With an infrastructure so solid, the organization today enjoys the rare distinction of the industry's only Sight holder who also manufactures its own precious color. Emeralds, Rubies, Sapphires and Tanzanite’s from its factories in India, Thailand, and Sri Lanka, KGK'S color stone division continues to provide the finest colored gems in a range of shades, in

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classic and modern innovative cuts. Passion so strong allows the company to offer a vast inventory of stones at any given time. In turn, the KGK Color Stone division has continuously surpassed its clients' expectations for a wide range of gemstones with competitive prices, and without compromising superb quality and service. The entire KGK Group deeply thanks its well-wishers who have continuously supported the company's endeavors.

KGK Jewellery A display of Diamonds & Gemstones can never be quite complete until the setting is just right. Jewellery with precious & semi-precious stones set in Gold & Platinum completes KGK's precious banquet

KGK's in-house designers and skilled craftsmen work in synchronized harmony to create classic & contemporary designs set to perfection on modern machines. KGK exports studded Jewellery to US, Europe, Japan, Dubai, Australia & South Africa. KGK has associated offices in US, Japan, Dubai & South Africa.

Indian Domestic Operation KGK’s phenomenal success, growth and recognition led to establishment of KGK Creations India PVT. Ltd. To make a foray into global market with wide range of contemporary Jewellery.

We expertise ourselves in manufacture of wide collection of Bridal Necklace Sets and Bangles, ensembles Rings, Earrings, Pendant sets and Bracelets all made in 18k gold in combination with diamonds and color stones. KGK’s in-house designers and skilled craftsmen work in synchronized Harmony to create classic and contemporary designs in studded Jewellery, hand crafted to custom requirements and set to perfection on modern machines.

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Custom and Tailor made approach have helped us to build an enviable reputation that pride itself with complete customer satisfaction. It is this service to customers perfected over a century that has helped KGK become a trusted and sought after name in diamonds, gemstone and Jewellery.

Assumed Decision Marketing Context Indian jewellery industry is much varied in styles and designs in accordance to the different regions. Indian jewellery has the unique design to the state and is not found anywhere else in the world. Different regions in India have a preference for different kinds of jewellery in terms of designs, size, weight, cost, etc. The decision making context for our product in gems and jewellery industry in Mysore will be highly dependent on: 

The purchasing pattern, choice, mind-set and purchasing capability of people in South (especially Karnataka).



The new trends in the jewellery industry.



The technical capability of the company chosen as jewellery production requires sophisticated machinery.



The availability of labour as jewellery development and production requires high level of craftsmanship.



The kind of precious metals and stones available in and around Mysore.



The investment capacity of the company in R&D and new product development.



The kind of growth and profit that the new product can give to the company.



The types of products already existing in the market.

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Opportunity Identification Reasons why People Buy Gold and Diamond jewellery Though gold and diamonds have several applications or uses, the main reasons why Indians take to gold and diamond jewellery are

1) Considered an equivalent for liquid cash: Gold and diamonds are highly liquid and portable as a Security or Asset. They can be converted to cash anytime when an emergency arises and are considered a friend in need.

2) Considered as Status Symbol: Especially in India gold symbolizes wealth. In Indian weddings the gold the bride brings in show her family's status and wealth and forms part of the dowry given to bride. It is believed that a bride wearing 24k gold on their wedding to bring luck and happiness throughout the married life. This custom has high significance in South Indian weddings and the amount of gold given with the bride is much more than in other regions of the country.

3) A very good investment: Gold and diamonds are an asset which has consistently increased in value and thereby considered as a safe and secure investment. Gold is considered an effective diversifier which helps to reduce portfolio risk.

4) Considered as a good gift item: It's precious and worthy across all cultures and times. The gold jewellery is given as gifts during weddings, festivals and other special occasions.

5) Gold has great religious significance: Gold is the symbol of the Hindu Goddess Lakshmi and considered highly auspicious. Gold is brought or presented on festivals like Dhanteras and Akshaya Tritiya.

6) Great Ornamental Value: Women of every age and time have always loved wearing gold and diamond ornaments. Moreover, gold ornaments are never out of fashion. It also may be remembered that Wedding rings are also traditionally made of gold to mark a long lasting

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relationship.

7) Great value as Heirloom: Gold jewellery is passed down from one generation to the other as ancestral property.

Competition in Mysore City 1) Bhima Jewellers is one of the famous and most sought after jewellery stores in Mysore. It was established in the year 1925. They have separated the outlets based on their products. They have a separate store for gold jewellery, silver jewellery and silver-ware. Their silver jewellery store goes by the name of “Trinkets”. Bhima’s USP lies in the variety of offerings. It stocks impressive gold and silver ornaments for both men and women. They have everything ranging from bracelets, bangles, ear rings, toe rings to anklets. The store is highly recommended for weddings and other social functions. They have a trusted following and this trust has been built over 75 years now.

2) For diamond jewellery lovers, there is Tanishq, a TATA enterprise. It is a leading brand in diamond jewellery. The diamonds here come with a certificate of authenticity, stating the carats, colour and clarity of the stone. The showroom in Mysore has a variety of jewellery, ranging from earrings to bracelets and some exquisitely-designed necklaces. A very important consideration for buyer from Tanishq, apart from the obvious ‘brand name’ is the fact that there are branches all over the country and they have the easy option of exchange at any of these outlets.

3) Another option for diamond jewellery is Srinivasa Diamond Hall, which stocks a wide range of attractive diamond jewellery. The collection of the ornaments range from bracelets to some awesome finger rings, necklaces and bangles. Both Tanishq and Srinivasa Diamond Hall take up orders for designing and manufacturing made-to-order designs.

4) Sharada Jewellers, is famous for Coorg and South Karnataka jewellery like kokke thati and mallige moggu. It has an attractive collection of gold, diamond and pearl jewellery.

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Like some of the other traditional stores in Mysore, they stock silverware as well.

5) Shankara Chetty & Sons is another impressive jewellery store in Mysore for its charming and 'all-occasion' jewellery made in a wide variety of designs and patterns in gold and silver. Traditional designs are one of the features of this store. The store also has silver ware.

6) Chemmanur Jewellers on Hardinge Circle has blended trend and tradition. They are spread across South India, have opened showrooms in the Middle East. 7) Joyalukkas, one of South – India’s leading jewellery retailers, came up only recently in Mysore (opened on 17th December 2011). The showroom showcases the latest international trends in jewellery and traditional and ethno- contemporary designs to meet all the needs of jewellery lovers in Mysore. A wide array of jewellery options is also available in Gold, Diamonds, Platinum, Precious Stones, Pearl and Silver in this large format Joyalukkas jewellery showroom. Joyalukkas strictly adheres to the policy of ensuring global and local standards in quality across all the products and services offered at its showrooms. All Joyalukkas jewellery are 100% BIS hallmarked for gold, 100% IGI certified for diamond and 100% PGI certified for platinum jewellery. Their USP lies in the wide array of products ranging from light weight daily wear to heavy gold jewellery with diamonds, precious or semi-precious002E. Jos Alukkas is the first ISO 9001:2000 certified jewellery group in the world showcasing BIS certified, 916 hallmarked gold, assuring the people the quality of products. The group prides itself on being able to deliver the maximum variety of designs according to the latest trends in international market. At first, the showrooms were opened in various cities of Kerala. Then, gradually the Group opened showrooms in Gulf Countries also. The group owns more than 100 jewellery stores all over the world, lending the international touch in their designs. 8) Malabar Gold has a showroom on the Bangalore – Mysore road in Lashkar Mohalla. Their USP lies in the sharpness of distinction in the designs they offer, namely Kashmeera, Kundan, Meenakari, Traditional and Turkish. Apart from the regular jewellery they also have a great collection of high – end watches from the house of Citizen, Omega, Rado, Tissot etc, thus making it the one - stop destination for marriage purchases. They have stores in major cities of

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South India and also in the Middle – East. Apart from these well – known jewellery shops in Mysore, there are also a lot of traditional familyowned business that take orders and offer customised jewellery but they have very limited collection and display and this may be one of the factors that drives the customers to branded stores. Also, the trust factor comes into play. With the gold prices increasing day by day, it only makes sense for customers to opt for a trusted brand. But at the same time, customers who have been purchasing from them for generations together, will not leave them and move to other brands easily. After having studied the demand and buying patterns of gems and jewellery buyers in Mysore, we decided to concentrate the following type of jewellery at the store in Mysore. 

Traditional designs in gold



Diamonds-set-in-gold jewellery



Gold jewellery set with precious stones



Light jewellery in gold for everyday use



The main feature of our jewellery store would be the offering of customized jewellery to the customers. Customization would be not just with respect to the designs of the pieces, but also with their requirements in weight of gold to be used and the kind of precious stones/diamonds to be used. A team of in-house designers would be employed to cater to this need of the customers. They could provide buyers with a catalogue for reference, or suggest self-made designs depending on the buyers’ needs and choices.

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PIC (Product Innovation Charter) Who are we and what do we do? 

We are exclusively into gold jewelry, diamond and precious stones



Customized designing

Who are our customers? 

People who need creative designs in gold and stones with an ability to spend

What are their demographics? 

South India (Karnataka)

What are their behavioural traits? 

Appreciation for exclusivity in design



Willingness to pay extra for genuine products



Maintain status quo



Experimental

What technology/ core competency do we leverage? 

Understanding of creative design/needs of the customers



Highly skilled designers



Exemplary quality



International standards

What are our growth expectations? 

10 % growth per year

What is our marketing plan? 

Bank on customization

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What do we want to accomplish? 

Enter South India



Establish as a Trusted brand



Positioning as a leader in jewellery customization

How much risk are we willing to take? 

Willing to wait for two years for market acceptance

How should we time our entry to the market? 

Two months before Deepavali

Based on the questions above and their answers, the following PIC was developed:

Focus: Customized jewellery in gold and precious stones:

KGK provides customized gold

jewellery to customers in South India who buy gold often and need creative designs. Our customers will mainly be the ones who spend highly on jewellery and want new designs each times which are unique from others available in the market.

Goal/Objective: We aspire to grow at least 10% each year and create a brand name in the South Indian market.

Guidelines: We will leverage most on our designing capabilities and ability to use different precious stones for new designs in gold. We will gain the trust of the customer by giving excellent quality in our products which are certified by international standards.

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Idea Generation The starting point for any successful new venture is the basic product / service to be offered. This idea can be either generated internally or externally. Developing a hobby, difficulty in obtaining a satisfactory product or service, evaluating new products being offered in the market and active engagement in Research and Development can help in generating a number of ideas.

Idea Generation Techniques Brainstorming 

A comfortable meeting environment was found and set up ready for the session.



One person to record the ideas that come from the session. These should be noted in a format than everyone can see and refer to.



The problem we want to solve is noted down clearly, any criteria to be met are laid out. The objective of the meeting was to generate as many ideas as possible.



People were given plenty of time on their own at the start of the session to generate as many ideas as possible.

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People are asked to give their ideas, making sure that you give everyone a fair opportunity to contribute.



Members are encouraged to develop other people's ideas, or to use other ideas to create new ones.

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It was ensured that no one criticized or evaluated ideas during the session. Criticism introduces an element of risk for group members when putting forward an idea. This stifles creativity and cripples the free running nature of a good brainstorming session.

Brain writing •

Five to eight people were seated around a table.

•

The facilitator presented a problem to the group.

•

The participants wrote their ideas on a sheet of paper.

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•

When a participant had written four ideas, he placed his idea sheet in the middle of the table (the pool) in exchange for another participant's sheet.

•

Participants read the ideas on the new sheet and then added ideas of their own. They may return the sheet or card to the pool and draw out a different sheet whenever they need additional inspiration.

•

After 30 to 40 minutes, the process ended, the idea sheets were collected.

A new product idea is a hypothetical suggestion which links a potential bundle of attributes with potential market. Constant balancing of technologies or attributes to customer or market benefits is the leitmotif of the product development process. Idea generation is actually the first step in new product development. Though there are several techniques of idea generation, the following seemed most appropriate in the current context and were carried out as follows:

Product centered techniques: Attribute analysis – features, functions and benefits: since gold is often viewed as something to do with defining the status symbol, the attributes will be different categories of products that are on offer. But one common underlying factor is the necessity of 916 hallmark and the authenticity of the stones being used. The benefits that people derive out of it would be more psychological than physical.

Attribute listing - when all the attributes are analyzed, these were the attributes that were found imperative in gold jewellery with stones” i.

22 carat gold (since 18 carat gold would qualify under art jewellery and also because 22 carat is considered ‘pure’)

ii.

Good quality, certified stones from trusted sources

iii.

Intricate designs

iv.

Availability of a wide range of choices

v.

Repairability

vi.

Customizability

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Scenario analysis It Mysore is situated at a very strategic location. It is quite close to the hubs of jewellery making industry like Hyderabad, Chennai, Coimbatore, and Tanjavur. Also, it has the royal touch to it since it was the capital of the erstwhile ruling empire of the Wodeyars and is also at a stone’s throw distance from Srirangapattana, the capital of the famed ruler Tipu Sultan, where gems and jewellery are said to have been bought and sold in open markets! The current market scenario in Mysore is as follows:

1) Bhima Jewellers is one of the famous and most sought after jewellery stores in Mysore. It was established in the year 1925. They have separated the outlets based on their products. They have a separate store for gold jewellery, silver jewellery and silver-ware. Their silver jewellery store goes by the name of “Trinkets”. Bhima’s USP lies in the variety of offerings. It stocks impressive gold and silver ornaments for both men and women. They have everything ranging from bracelets, bangles, ear rings, toe rings to anklets. The store is highly recommended for weddings and other social functions. They have a trusted following and this trust has been built over 75 years now.

2) For diamond jewellery lovers, there is Tanishq, a TATA enterprise. It is a leading brand in diamond jewellery. The diamonds here come with a certificate of authenticity, stating the carats, color and clarity of the stone. The showroom in Mysore has a variety of jewellery, ranging from earrings to bracelets and some exquisitely-designed necklaces. A very important consideration for buyer from Tanishq, apart from the obvious ‘brand name’ is the fact that there are branches all over the country and they have the easy option of exchange at any of these outlets.

3) Another option for diamond jewellery is Srinivasa Diamond Hall, which stocks a wide range of attractive diamond jewellery. The collection of the ornaments range from bracelets to some awesome finger rings, necklaces and bangles. Both Tanishq and Srinivasa Diamond Hall take up orders for designing and manufacturing made-to-order designs.

4) Sharada Jewellers is famous for Coorg and South Karnataka jewellery like kokke

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thati and mallige moggu. It has an attractive collection of gold, diamond and pearl jewellery. Like some of the other traditional stores in Mysore, they stock silverware as well.

5) Shankara Chetty & Sons is another impressive jewellery store in Mysore for its charming and 'all-occasion' jewellery made in a wide variety of designs and patterns in gold and silver. Traditional designs are one of the features of this store. The store also has silver ware.

6) Chemmanur Jewellers on Hardinge Circle has blended trend and tradition. They are spread across South India, have opened showrooms in the Middle East. 7) Joyalukkas, one of South – India’s leading jewellery retailers, came up only recently in Mysore (opened on 17th December 2011). The showroom showcases the latest international trends in jewellery and traditional and ethno- contemporary designs to meet all the needs of jewellery lovers in Mysore. A wide array of jewellery options is also available in Gold, Diamonds, Platinum, Precious Stones, Pearl and Silver in this large format Joyalukkas jewellery showroom. Joyalukkas strictly adheres to the policy of ensuring global and local standards in quality across all the products and services offered at its showrooms. All Joyalukkas jewellery are 100% BIS hallmarked for gold, 100% IGI certified for diamond and 100% PGI certified for platinum jewellery. Their USP lies in the wide array of products ranging from light weight daily wear to heavy gold jewellery with diamonds, precious or semi-precious002E. Jos Alukkas is the first ISO 9001:2000 certified jewellery group in the world showcasing BIS certified, 916 hallmarked gold, assuring the people the quality of products. The group prides itself on being able to deliver the maximum variety of designs according to the latest trends in international market. At first, the showrooms were opened in various cities of Kerala. Then, gradually the Group opened showrooms in Gulf Countries also. The group owns more than 100 jewellery stores all over the world, lending the international touch in their designs. 8) Malabar Gold has a showroom on the Bangalore – Mysore road in Lashkar Mohalla. Their USP lies in the sharpness of distinction in the designs they offer, namely Kashmeera, Kundan, Meenakari, Traditional and Turkish. Apart from the regular jewellery they also have a great collection of high – end watches from the house of Citizen, Omega, Rado, Tissot etc., thus

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making it the one - stop destination for marriage purchases. They have stores in major cities of South India and also in the Middle – East. Apart from these well – known jewellery shops in Mysore, there are also a lot of traditional family-owned business that take orders and offer customized jewellery but they have very limited collection and display and this may be one of the factors that drives the customers to branded stores. Also, the trust factor comes into play. With the gold prices increasing day by day, it only makes sense for customers to opt for a trusted brand. But at the same time, customers who have been purchasing from them for generations together, will not leave them and move to other brands easily.

Based on all the analyses, some of the following ideas were generated using the techniques: 1. Kundan jewellery: Kundan keshri is traditional South Asian gemstone jewellery, a method of gem setting in a jewellery piece, consisting of inserting gold foil between the stones and its mount, usually used to create elaborate necklaces believed to have originated in the royal courts of Rajasthan and Gujarat. It is the oldest form of jewellery made and worn in India.

2. Antique jewellery: These are several decades old. Also, these days in the market, antiquelike jewellery have gained acceptance. In South India, among the antique jewellery, ‘temple jewellery’ of Tamil Nadu is quite popular.

3. Plain gold jewellery: It is a general belief that embedding stones would lessen the weight of the actual gold and lead to a lot of ‘wastage’ for which the charges are levied. So a lot of people prefer plain gold jewellery. Also these are the preferred wedding jewelleries since they have no stigma attached with them.

4. Traditional jewellery: These seem to overlap with antique jewellery in terms of design but not in the age of the jewellery. Their designs are old and have been popularized by branded jewellery stores across the country. Some examples are ‘kasina sara’, ‘belli moda jhumki’ etc.

5. Silver and Platinum jewellery: The youth seems more drawn towards alternate metals like

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silver and platinum. It could also be due to their subtle appearance and non-flashy nature of the metal. Earlier since the focus was only on gold, silver jewellery collection was limited when it came to earrings, bracelets or bangles (barring anklets). But now, the range of designs available is quite alarmingly large. With gold prices increasing by the day, silver jewellery seem like an economical option. As for platinum, the metal has been only recently popularized especially for wedding bands and small studs and pendants.

6. Jewellery With Semi-Precious Stones: stones have very low resale value (if at all). Since they are embedded, while redesigning the gold ornaments, the stones often suffer from chipping and hence cannot be re-used. Therefore, people are moving towards semi-precious stones that look like precious stones but are a lot less cheap.

7. Rajasthani Jadau jewellery: This is very popular as an investment buy. It has the richness of pearls and stones teamed with enamel work. It is quite heavy and is basically worn in North Indian weddings.

8. Gold Covered Jewellery (one gram gold): Ever since the gold prices started sky-rocketing, gold covered jewellery started to become more popular. They are affordable and available in marvelous designs which, probably goldsmiths cannot replicate.

9. Jewellery with Stones for Particular Zodiac Signs: Every Zodiac sign apparently has some specific stone that defines the features of the individual. These stones are supposed to bring good fortune to those who wear them. Jewellery incorporating these stones is also popular.

10. Diamond jewellery: A plethora of brands offer diamond jewellery to suit all pockets. The diamond jewellery come in various designs and the carat ratings are different. The price is decided depending on the carat rating and the amount of gold used.

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Idea Screening

Category screens and internal strength screens to zero in on the final idea: KGK is in the business of diamond jewellery since a long time. KGK’s Diamond Operation started in the year 1969 with Diamonds trading and Diamond manufacturing activities began in 1982. Initially KGK was sourcing its Rough Diamond requirement from Antwerp the world’s Diamond Capital. The company is also a DTC Sight holder which means they are allowed to purchase diamonds directly from the mines in bulk. This is a competitive advantage that KGK has. Hence, applying the Internal Strengths Screen, KGK in Mysore should enter into the diamond jewellery category. Its expertise in gold jewellery is also commendable. It has operations in several countries. Their offerings are tailor made according to the preference of the country’s customers. They understand the pulse of the market very well. The intricacies of the designs in gold are competitive not only in the local markets but also abroad. Going in for cheaper one gram gold jewellery will dilute the brand and not be in line with the strategic goals and objectives of the company. Also, the Mysore market has been seen to respond better to gold than any other metal. So applying the category screen and internal strength screen, gold jewellery should be the best option. If the company focuses only on diamond jewellery, in a place like Mysore, where ‘coloured stones’ also are important selling units the overall sales might be quite low. So to keep the profits up, the company should also provide precious stone jewellery. Semi-precious jewellery should be avoided because this might again dilute the brand. For the purpose of getting customized jewellery, people generally go to their trusted goldsmith. But the problem with unorganized manufacturers is that they generally do not invest much time on the design generation and hence have a very limited collection. The craftsmen cannot be trusted to deliver the product that one intended to have in the first place. This is where KGK has an advantage. Years of experience, both inside and outside of the country, has exposed the craftsmen to various types of designs. Also, the company is trusted by the loyal customers.

Taking into consideration all the above factors, the offering that we are looking to market in

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Mysore has the following features: 

22 carat gold



Diamond and precious stones

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Light-weight jewellery

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Customizable

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Concept Generation Product Concept Need The country’s gold Jewellery demand is likely to remain on a more moderate growth path as the market matures and economic growth cools. Indian Jewellery demand growing 10-15 per cent this year without being impacted by slowing economic growth will no doubt be encouraging for the gems and Jewellery sector that provides. South India is the biggest consumer market of gold and diamond in India and is the prime target for the Jewellery market. Chennai followed by Bangalore are the two most important centers in terms of the Diamond market.

Gold Jewellery is an important item of personal and family wealth in India, which is bequeathed and passed on to sons and daughters. There are occasions such as marriage, the birth of a child, name-giving ceremony, etc., when gold Jewellery is gifted. In Indian weddings the gold the bride brings in show her family's status and wealth and forms part of the dowry given to bride. It is believed that a bride wearing 24k gold on their wedding to bring luck and happiness throughout the married life. This custom has high significance in South Indian weddings and the amount of gold given with the bride is much more than in other regions of the country. Mysore was famous for its traditional designs in gold Jewellery requiring special artistry and these items are being revived again as the demand is rising. There are many Jewellery shops in Mysore including Bhīma jewellers, Srinivasa Diamond Hall, is Sharada Jewellers. Apart from these well – known Jewellery shops in Mysore, there are also a lot of traditional family-owned businesses that take orders and offer customized Jewellery but they have very limited collection and display and this may be one of the factors that drive the customers to branded stores. Also, the trust factor comes into play. With the gold prices increasing day by day, it only makes sense for customers to opt for a trusted brand.

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Mass merchandising outlets and online Jewellery megastores in Mysore do not offer the level of customization that a retail jeweller can produce, nor can they offer the personal touch of the face-toface experience that is necessary to exceed a client’s expectations.

Form

 Gold Jewellery with Diamonds and Gems Stones An array of exquisite designs embedded with the finest gemstones and touched by true craftsmanship make Jewellery at ENTICE purely breath-taking. With a unique blend of big sized diamonds and colour stones, Jewellery at ENTICE captivates beyond imagination.

Technology KGK Creations, have state of the art technology to make customers experience the best quality in the world. KGK's in-house designers and skilled craftsmen work in synchronized harmony to create classic & contemporary designs set to perfection on modern machines.

Highly skilled assorters assort and grade the Polish Diamonds into various lots as per their Cut, Colour, Clarity and Size. All assorted goods pass through strict quality control measures as per KGK's laid down assortment standard's before they are sold all over the world. This is the reason they are known for the Best Quality Products and total Customer Satisfaction all over the world. Their machines have extra ordinary technologies including 3D CAD/CAM machines, laser soldering machine, laser cutting machine, Enamelling contraption, Electro polishing machine etc.

They also use the process of fire assay testing to confirm gold karat which is to the fore option of the X-ray testing. They continuously keep looking for the most recent technologies in the world to take over them ahead of all industry.

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Benefits The Fashionable designs with subtle, yet refined beauty are desired and admired by fashion conscious women of every background and age. On offer is one of the most unique and iconic collections in sublime Jewellery. Amongst the largest, most desirable Jewellery brands, it is synonymous with purity and innovation and is trusted name, bringing joy and value.

The main feature of our Jewellery store would be the offering of customized Jewellery to the customers. Customization would be not just with respect to the designs of the pieces, but also with their requirements in weight of gold to be used and the kind of precious stones/diamonds to be used. A team of in-house designers would be employed to cater to this need of the customers. They could provide buyers with a catalogue for reference, or suggest self-made designs depending on the buyers’ needs and choices. Custom design allows you to create a piece of jewellery as unique as your own fingerprint whether creating a new piece, or updating an existing piece of jewellery by remounting the stones into a new design.

Provide each Custom Jewellery Design client with an album of photorealistic renderings that tells the story of their design, from conception to perfection. There are many benefits to choosing custom jewellery rather than “off the shelf” pieces. Deciding on whether to purchase custom jewellery depends on personal considerations. There is no denying the appeal of wearing jewellery that no one else owns, and having something that is truly unique and original.

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Concept Screening The Scoring Model

Therefore we are looking to market in Mysore for 22 Carat Gold

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Revised PIC Focus: KGK Company is committed to provide superlative and quality products conforming to international standards which also includes customized jewellery in gold (traditional as well as modern) and precious coloured stones. We want to establish as the most creative company in terms of designing and become the market share leader specifically in customized jewellery with a 10 % growth rate and to attain the foothold of the market within first year of launch especially in South India. Goal/Objective: It would be achieved by building on our designing skills so as each design created is different from the previous one. Our customers will mainly be the ones who spend highly on jewellery and want new designs each times which are unique from others available in the market. The company is willing to invest the required funds in R & D department to come up with innovative designs and to create a quality benchmark in the market. Guidelines: We will leverage most on our designing capabilities and ability to use different precious stones for new designs in gold. We will gain the trust of the customer by giving excellent quality in our products which are certified by international standards and care will be taken that we give back more than what we take from our customers by adding value to our offerings.

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IRP (Information Requirement Planning ) S.no. Source of information 1.

2.

3.

Youth (non-working) Age: 18-25 years

Working women Age: 25-40 years

Home maker Age: 25-50

4.

Bride Age: 20-30

5.

Elderly women Age: Above 50

6.

Men

                       

Information Reasons for purchase of jewellery Fashion as a consideration Price as a preference Importance of trend Ease of use Weight of jewellery (Light) Complementing clothes Frequency of purchase Hurdles in shopping for jewellery Design Authenticity Guarantee and warranty Investment as a consideration Durability Purchasing pattern for different occasions Preference for customization Uniqueness Multiple items at a time Weight of jewellery (Heavy) Modification of existing jewellery Astrology as a consideration Tradition Gifting Purpose Items preferred

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Scaling  Ordinal  Ordinal  Interval     

Ordinal Interval Interval Ordinal Interval

     

Nominal Nominal Nominal Interval Interval Ordinal

        

Ordinal Nominal Interval Interval Nominal Nominal Ordinal Nominal Ordinal

Concept Sheet for KGK Jewellery Concept Statement KGK offers its customers with the unique opportunity to have their jewellery. It offers custom made jewellery as well as unique designs to its customers.

Highlight of the concept A chance for the people of Mysore to own an exclusive piece of jewellery that scores high on design and fine craftsmanship. Who is it for? KGK’s customized jewellery is for every person who either has a jewellery design in mind that he/she would like to have made, or would like to use our design team’s help to determine what exactly he/she would like the piece to look like. It also has a range of existing designs which are different from that already available in the market (keeping up to the trend). It is a very good gifting option as well. Key Selling Points: 1. Assurance of highest quality – hallmarked gold and gemstones of highest grade. 2. Finest craftsmanship to guarantee that every piece of jewellery we make is a masterpiece in itself. 3. Customization:  Type of design – either the customer’s choice, or recommended by KGK’s team of jewellery designers.  Gemstones in the jewellery as per customer’s demand.  Weight of gold to be used – the piece can thus be light or heavy, depending on the customer’s need.  Customer can bring their own gold and gemstones if they want to use it for creating new pieces of jewellery. We will accept them after putting the materials through a round of thorough quality check. 4. Artisans will work in a workshop that is located in Mysore city itself. So delivery of orders will be made as swiftly as possible.

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Pricing: The price of the jewellery will depend on the weight of gold used, type and number of gemstones used for setting, complexity and sophistication of design. Making charges are reasonable and competitive when compared to other makers of jewellery in the city.

Benefits of the concept 

Availability of a wide range of exquisite designs, both traditional and the most recent in trend.

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For people with specific demands with respect to design, customization services are on offer.

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Customers will be assured of only the best quality of gold and gemstones. Certification of authenticity will accompany every purchase made at KGK.

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Concept Evaluation For evaluating and testing the viability of the concept of our product we focused on customers and people already operating in jewellery market. According to our team customers were the best and most important source of information. Another important source of information was the owners and people working in the exclusive jewellery stores of Mysore. To capture the response of the people we took help of questionnaire, interview of people and observation of their preferences and buying behavior. Each method and its findings are explained below.

Survey of the customers    

Name Age Gender Occupation



How often do you shop for jewellery? o Very occasionally (once in 2-3 years) o Once in 6 months o One in a years o On occasions like Akshay Tritiya and Diwali o You are very fond of jewellery and keep updating your collection as an when new designs come in

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About how much do you spend during one time purchase of jewellery? o Rs. 10,000 and less o Rs. 10,000-20,000 o Rs. 20,000-50,000 o More than Rs. 50,000

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You see gold as: o Investment o Something that enhances beauty o Both above

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Do you purchase jewellery for astrological reasons? o Yes o No

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You prefer jewellery made of: o Gold o Silver

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o The metal is not important, it is the design that matters 

Would you mind spending a little extra for customization of your jewellery matching your clothes or design you wish? o Yes I would like customization but I can’t spend extra for it o Yes I would like it and can spend extra for exclusivity o No

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Would you prefer having precious and semi-precious stones (diamonds and coloured stones) in your jewellery to enhance its beauty? o Yes o No, I would like only gold

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What do you look for when purchasing jewellery? o Design o Cost o Weight o Size o Others (ease of use, complementing clothes, etc.)

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Which store do you prefer the most for jewellery shopping and why? o Name of store: o Reason: Authenticity Variety Finishing After sales service You generally prefer: o New purchase each time o Modification of existing jewellery whose design is outdated o Decision varies depending on .................................



Analysis of the survey The response to the above questionnaire was captured at places where are potential customers visit like the high end jewellery shops in Mysore. An attempt was made to ask the questions to the customers and explain them what we intended to ask so that there are no impulse answers. Also it was taken care that we target the age group between 28 and 45 because these are the people who are more conscious about fashion and have the capacity to spend more on jewellery. Women were targeted during survey majorly. From the responses captured we could infer following things about the purchasing pattern and

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preference of women in Mysore: •

The frequency of buying jewellery among high end customers is at least once a year. This might be during some festival or at any random time of the year according to their requirements

•

On an average our target customer spend almost Rs. 20,000-50,000 on jewellery during one purchase

•

Gold is more preferred than any other metal because the investment is quite high

•

Gold jewellery is perceived both as investment and something that enhances beauty and hence people buy more gold than any other metal

•

Customers would like customization of their jewellery and are ready to pay extra for it

•

The response for stones in jewellery is divided but we could see that people are not very aware about the possible designs with stones embedded in gold

Interviews Many people were not willing to fill the survey form due to common notions that it is very time consuming and people see no meaning in it. To overcome this, our team tried to talk to the owners of the shop who see customers every day and also few customers. The response captured gave us important information as below: •

These days people buy jewellery quite often

•

The reason for frequent purchase of jewellery is increasing income, maintaining status quo and also keeping up to the trends

•

The people in Mysore still prefer gold jewellery over any other metal

•

There is a demand for new designs and varieties

•

Customers are willing to experiment more these days

•

There is no facility in Mysore till now which can customize jewellery for people

•

People search for nice designs with precious stones (this is when they are purchasing stones for astrological purposes)

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Observations Our team observed the purchasing pattern of people at various stores and we could come up with conclusion similar to what is suggested by the survey and the interview. People are looking for innovative designs and are willing to pay for quality jewellery. People are still not exposed to the kind of product we are trying to come up with (gold jewellery with stones). There is high probability that the response to such a product will be good as people are looking for new design in jewellery and there are not many suppliers for the same.

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Buying Incentives 

Every piece of KGK jewellery is a work of art. Our prices are better than other stores in Mysore.



Customers will get to enjoy shopping in a relaxed, personalized environment, away from busy shopping malls. They also get to meet the artists and designers who create the jewellery that they're buying.

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Assistance will be provided by friendly and knowledgeable staff.

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Jewellery made of 916 hallmark 22 carat pure gold.

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Superior quality, authentic and certified precious stones and diamonds from trusted sources.



Availability of wide range of choices and designs.

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Customization as per individual requirements. o Light weight pieces made from less quantity of gold. o Traditional or contemporary designs. o Stone settings as per choice. Diamonds and other precious stones can be chosen by the customer depending on his/her requirements of the stones’ size, cut, colour, etc.



Repair and polishing facilities.

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Great gifting options.

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Zodiac Signs and Stones

Aries Power color: Red Power stone: Ruby Ruby known as the stone of love and passion is said to attract ones soul mate and reputed to bring true lasting love into the life of the wearer. Zodiac stone- Imperial Topaz Imperial topaz: topaz comes in many shades such as yellow, orange, purple and blue colors that are often reflected in the sunset of a beautiful day. Deep pink imperial topaz is a rare and highly magical stone for those born under the sign of Aries to wear as it carries a kind of Midas touches energy and is reputed to bring great good fortune to the owner.

Taurus Power color: Brown Power stone: Green jade Green jade is known as the stone of success and power, boosts selfconfidence. When worn with pearls it is reputed to increase financial and personal wealth. Zodiac stone- Iolite Iolite is a powerful violet colored stone used to enhance psychic intuition, healing and astral travel. This highly protective stone can be worn to ward off psychic vampires, (people who drain our energy) by deflecting/absorbing negative energies. Iolite can be used to increase personal integrity and increase good fortune.

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Gemini Power colors – Yellow and Sky Blue Power Stone – Citrine Citrines is a beautiful yellow gold gemstone whose golden rays mirror and emit uplifting energy almost like harnessing the power of the rays given off from the sun. Citrine increases mental agility, creativity, decisiveness and mental focus. Citrine will help those born under the sign of Gemini to express and receive emotional love. Zodiac stone - Moonstone Moonstone can look opalescent and translucent depending on the light this lovely gemstone comes from the feldspar family, known as the stone of hopes and wishes. Moonstone is kind to all feminine ailments; this crystal is reputed to bring good fortune and personal protection to the wearer especially beneficial to travelers and those wishing to heighten their psychic abilities.

Cancer Power Colors: Silver and White Power Stone: Moonstone Moonstone is a protective stone for all cancerians, for underneath their tough exteriors they are emotionally sensitive people who are easily hurt. Carrying a moonstone will help a Cancerian to build their resilience to life’s knocks by increasing their confidence and courage. Zodiac stone - Pearl This is the comfort gemstone. Pearls bring peace and tranquility to the wearer especially soothing and healing to the emotions and will help to ease the pain of loss and disappointment in romantic situations. In the home pearls promote family unity, harmony, security and warmth.

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Leo Power colors: Gold and Purple Power Stone: Diamond Diamonds are said to grant your hearts desires and bring good luck and abundance. Diamonds are thought to promote loyalty, integrity, faithfulness and constancy that are the reason why diamonds are often chosen as settings for engagement rings. Zodiac stone - Tiger Eye and Peridot Tiger eye is a brown stone, which is interlaced and often banded with gold. The tiger eye stone serves as a symbol of the status Leos feel they deserve, and so tiger eye will help them to reaffirm their own self-worth. Promotes creative vision, strengthens willpower and boosts confidence.

Virgo Power Colors Grey: Tan and Yellow Power Stone: Yellow Sapphire The yellow sapphire is known as the stone of prosperity; it brings wealth and turns dreams into reality. When purchasing a yellow sapphire ensure that it is a sapphire and not a citrine by holding the piece up to the light, you should then a deep golden ray with inclusions of orange, if it is the correct magical stone for you the sapphire ray will travel along the index finger and thumb of your power hand said to bring you untold wealth and good fortune. Zodiac stone - Herkimer diamond The Herkimer diamond is a truly inspirational stone, the stone of pure white light and energy. It will allow all Virgos to see and believe and in so doing will bring their hopes, dreams and wishes into the now.

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Libra Power Colors: Ivory, Light Blue, Pink Power Stone: Lapis Lazuli Lapis lazuli is known as the stone of heaven; it is reputed to make all things possible, a true wish stone. Highly valued by the ancient Egyptians lapis lazuli was used to embellish sacred and magical amulets used for healing, protection and good luck. Zodiac stone – tourmaline Tourmaline is a strong protective stone, the stone of good will, friendship, health, happiness and prosperity. This blue stone is renowned for enhancing psychic skills, clairvoyance and higher levels of intuition. Tourmaline also aids communication skills and logical thought patterns.

Scorpio Power Colors: Black and Red Power Stone: Black Onyx Black onyx emits powerful energies that will help the Scorpio owner to take control of their destiny as it is known to stimulate the power of wise decision-making and is said to bring happiness and good fortune to those who are born under the sign of Scorpio. Zodiac stone - star ruby The energy of the star ruby is as intense as its color. This glorious deep crimson gemstone with its six rayed inclusions emits powerful properties that will allow the owner to gain and retain wealth and help them to achieve success in business plus fame, certainly an advantageous stone for all who dream of celebrity status or who are involved in the theatre, broadcasting and performing arts.

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Sagittarius Power Colors: Red and Midnight Blue Power Stone: Fire Opal Fire opal is a pure energy stone a powerful transmitter of positive energy and uplifting vibrations. This beautiful iridescent stone will surround the owner with a kaleidoscope of colorful protective energy that will cloak the wearer against misfortune and will bring direction and success to all areas of the Sagittarians life. Zodiac stone – black tourmaline Black tourmaline increases the physical vitality levels of the wearer and creates emotional stability, strengths that lead to creativity and self-belief that lift the spirit to help ward off depression. Strengthens the lower back and has been beneficial in the treatment of arthritis.

Capricorn Power Colors: Brown and Khaki Power Stone: Malachite Malachite is a green stone that is known as the stone of transformation, it is said to bring success to any venture. Capricorns who need rapid results in any area of their lives should befriend this powerful stone. Zodiac stone - jet This black stone is said to protect the wearer against violence and illness, it will also aid financial success and bring stability to the Capricorn owners’ finances.

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Aquarius Power Colors: Turquoise and Silver Power Stone: Iolite Iolite is known as the water sapphire and has a beautiful color midway between blue and purple. This is a must have for all Aquarians as it will help you to reach for the stars and realize all your hopes and dreams as it boosts insight and inspiration. Iolite emits strong positive creative vibrations and promotes harmony, a good crystal to have in the home, it is also said to attract friendship and love in to the wearer’s life. Zodiac stone celestite Celestite is a beautiful pale blue crystal that can only be described as a celestial stone. It will help to attune the psychic to the higher angelic realms as it radiates happiness, success and contentment. Celestite is also known as the stone of truth and honesty so a perfect choice to carry with you if you are about to buy a house or enter into a financially binding contract

Pisces Power Colors: Purple and White Power Stone: Rainbow Obsidian Rainbow obsidian is known as the stone of fulfillment as it brings happiness, contentment and pleasure to the wearer. This deeply mystical stone is the stone of wishes and is perhaps the most powerful lucky talisman that a Pisces could own. Rainbow obsidian is an excellent stone to help reduce stress levels and aid recovery from depression. Zodiac stone: Ametrine is of the quartz family and shares its colors and properties with amethyst and citrine, part violet and part golden ray in color. Ametrine is the symbol of unity, partnership and friendship also reputed to bring good fortune, longevity and success to the wearer. This beautiful crystal works like a beacon to attract all higher spiritual beings especially archangels and angel light forms.

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Design A display of Diamonds and Gemstones can never be quite complete until the setting is just right. Jewellery with precious and semi-precious stones set in Gold and Platinum completes KGK’s precious banquet.KGK's in-house designers and skilled craftsmen work in synchronized harmony to create classic & contemporary designs set to perfection on modern machines.

Contributions of Design in Product Development Process Design for Differentiation From the Idea Generation Group we can fine that gold Jewellery with stones are intricate in design. So by changing structure of design according the customer acceptance we can differentiate our product and offering out product being more original id design.

Design to Meet Customer Needs Deep understanding of the customer needs is required in order for the firm to translate a high potential technology into a product that provides meaningful benefits to the customer. Unorganized manufacturers generally not invested on the design generation.KGK has year of experience in design. This can exposed the craftsman to various types of designs so we can make customized Jewellery according the customer needs.

Design for Speed to Market We found that customer having a problem getting own customized design with Jewellery. People are looking for innovative designs and are willing to pay for quality Jewellery. People are still not exposed to the kind of product we are trying to come up with (gold Jewellery with stones). There is high probability that the response to such a product will be good as people are looking for new design in Jewellery.

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Product Design It is a unique set of skills and abilities that determines the special role the product designer plays in the new product process. KGK’s in-house designers and skilled craftsmen- work in synchronized harmony to create classic and contemporary designs in studded Jewellery, hand crafted to custom requirements and set to perfection on modern machines. Custom and Tailor made approach have helped them to build an enviable reputation that pride itself with complete customer satisfaction.

An experienced, knowledgeable sales team works closely with these talented designers and merchandisers, which makes their product development very focused & market specific. So we can make our customized product with the help of these designers according to customer requirement.

Prototype Development Focused Prototype Focused prototype examines a limited number of performance attributes or features. Since our product is not so new to the world we have to understand how product works and how well it satisfies our customer needs. Customization is the very first requirement for every individual. They want Light weight pieces made Jewellery. They want traditional and contemporary designs. So by focus on the particular requirement of the customer we can develop our prototype for the product.

Comprehensive Prototype A more comprehensive prototype is necessary to determine how well all the components fit together. Various members of the new product team are required to build the comprehensive prototype. After Focus prototype we can develop our comprehensive prototype to check performance of the prototype and we will track the various stages used in the above process. Then we can move our product to potential users to tested in real usage situation, and then improve and refine.

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Product Use Testing Product Use Testing means testing the proto type under normal condition. Like in jewellery industry by customer specification and reviews, the jewellery developed by company a prototype of customize jewellery has to be tested for durability, before launching the product.

Decision in Product Use Testing Who should be in the user group? 1. When the new product launch the testing has been done with lab personnel and employee at the plants where the products are first produced. 2. Experts are the second group who diagnosis the problem How should we reach the user group? First the mode of contact to be decided: Mail method and personal method are most common. The best strategy for jewellery industry is going for personal method to reach user group. How much explanation should provide? The brief about the new product has to be given to the user before using how to use what are precaution measure have to have. Is design is suitable for their personality or not.

Type of Product Use Test as applied to Jewellery industry TYPE

PRODUCT

INSTRUCTION

Monadic

The new product alone

Try this new jewellery, tell me how it is.

Sequence Monadic

Back to Back Monadic test

Same as on monadic

The new product and another company jewellery of Paired Comparison

1. Market leader 2. One known to be best 3. The leader in the segment selected 4. One currently used by tested.

The best strategy for jewellery industry is product and this test is simplest.

monadic

Try these and tell me how you like them, which you prefer etc.

use test technique because it represents normal used of

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Over what time period the test should be conducted? Some use test require a single product experience ; some use over short period of up to week; and some require use over extended periods up to six months. The longer period is required if substantial learning is required. Longer period is also needed if the product faces a full range of variation in use. As our product is newly launched, we suggest going for single product experience.

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Strategic Launch Planning It involves strategic decisions and tactical launch decisions. Strategic launch decisions include both strategic platform decisions that set overall tone and direction, and strategic action decisions that defines to whom we are going to sell and how.

Strategic Platform Decisions Type of Demand Sought Since KGK is entering in South with its store in Mysore which is a well-established market for gems and jewelry and a lot of players are already in the market. So, emphasis will be laid on gaining market share and selective demand which means persuading customers about the benefits of our brand i.e. international quality, creative design, offering unique designs and purity. The major USP would be the offering of customized Jewelry to the customers not just with respect to the designs of the pieces, but also with their requirements in weight of gold to be used and the kind of precious stones/diamonds to be used. A team of in-house designers would be employed to cater to this need of the customers. They will provide buyers with a catalogue for reference, or suggest self-made designs depending on the buyers’ needs and choices. The salesman will be sent in the entire city to promote this concept.

Permanence We are entering the market with only one motto i.e. to stay and survive because we are offering something new (customization and stones embedded in gold) and authencity along with all regular diamonds, gems and stones and gold which has a growing demand in this region.

Aggressiveness Aggressiveness refers to an attitude as much as money. The city we are entering is Mysore and has a lot of very well established customers which means it needs a lot of attention and promotion early on. This is essential to make the brand visible and different to already established layers and to support our permanence.

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Competitive Advantage The competitive advantage that the company has is that it is the official holder of Diamond Trading Company from India which gives us an international experience in terms of quality and genuine products. We will be offering competitive prices for our regular jewelry which will also be unique in design. As far as customized jewelry is concerned, it needs to be as unique as the DNA structure of the buyer is which will fetch a little higher price which is for medium and high end customers.

Competitive Relationship Since the company is entering an established market where there are a lot of competitors, the company will make no reference to a specific competitor and will focus directly on the customers i.e. in what way it will differentiate itself and to attain a good market share and establish itself as a unique and trusted brand. Scope of Market Entry Since, the industry requires a lot of initial investment in terms of infrastructure, promotion and is important for buyers because jewelry is an expensive stuff and is not a very frequent buying and we are also offering something new like customization and gold exchange, it becomes essential to do a market test in form of a survey and showing the samples of our past exemplary designs that have been sold in the other parts of the market and if the result is positive, then we will go ahead with necessary changes if required. Image The company will go ahead with the same image for what we stand-uniqueness in designing and purity.

The Target Market Decision Following are some of the ways to segment a market

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End Use It refers to the type of application and usage the end user wants. For example- traditional or modern jewelry, the gem or stone that is to be embedded, necklace, bracelet or pendants etc. i.e. whether the jewelry is purchased for wedding, parties, just as an investment. Geographic and Demographic The preferences differ from country to country and also from culture to culture. In India, it differs even from state to state. For example- in North, diamonds are purchased more as compared to other segments while South is the major market for gold. The senior citizens want traditional designs in necklace, bangles and earrings while others want light weight, studded and easy to wear. Behavioral and Psychographic Market is segmented according to psychographic variables: Values- The customized jewelry will give them a sense of pride and appreciation that it has been designed exclusively for them. Activities- This is developed for the people who wants to show their creativity in design. Lifestyles- The people who want to enhance their social status.

Micromarketing It is defined as dividing targets with unique purchasing patterns in clusters called micro markets. The buyers are divided asLoyalists-who buy one brand at all times and don’t use deals Rotators-who moves around in 2-3 product sets Deal selectives-rotators whose movement is affected by deals Price driven- who buy all major brands always on deal Store brand buyers-who do as their name implies Light users-who buy too little for a pattern to show.

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The main targets for the company are rotators and store brand buyers. We will also target other clusters by offering different kind of deals like free polishing on any of your existing jewelry on the purchase from the store, lucky draws with assured return on certain purchase.

Targeting by Innovation Here, we will look at different factors that will affect the product adoption when it will be launched in Mysore.  Relative advantage of the product over other It highlights the advantage of the product over the existing offering from competitor like international standard, customization.  Compatibility It defines whether the product is satisfying the need i.e. best buy, enhancing the status and feeling of appreciation.  Complexity The basic idea that the company wants to deliver to the customers should be clear i.e. what we are offering, should be seen as soon as the product is used. For example- world class designs and light weight.  Trialability The trial offerings of the products should be made i.e. simulation of the customized jewelry will be done and shown on the computer with the help of software by our creative designers and only after that it will be sent for final making.  Communicability The product will be available at all our outlets as we control the supply chain from procurement to retailing.

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Implementation of the Strategic Plan Launch Tactics Tactical launch decisions are marketing mix decisions such as communication, promotion, pricing and distribution and are typically made after the strategic launch decisions.  Promotion It will be done through advertising and publicity by billboards, TV commercials and leaflets.  Sales and Distribution Since we are present from procurement, manufacturing to retailing, time and form utility will be effective because we are a direct channel company; warranty and after sale services will be offered easily.  Pricing By discounts, introductory pricing to gain acceptance  Product Introducing in a variety of designs of diamonds, gems, stones, silver and gold.  Timing Building hype before launching and actual selling.

Personal Selling Personal selling will be employed inside the store. Salespeople will spread awareness of the product. Proper training will be given to creative designers to be able to craft all the designs.

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Market Testing Simulated Test Market This method is best suited for a product like jewellery. It can be used as a form of getting estimates of trial purchasing and repeat purchasing. By applying A-T-A-R model in the form of Awareness of the customized jewellery we are dealing in with the help of Advertising whereas Trial, Availability and Repeat are the responsibility of Manager of KGK Jewellers. Let’s see how we can perform a Simulated Test Market in Mall of Mysore. Step1. Initially the respondents are observed with respect to their personal specifications like age, sex, income, status etc. Then the respondent will be observed with respect to his buying behavior. This will include the spending capability, frequency, and preference of buying jewellery and also will give an overview of Competitor’s offerings. Step2. After observing their attributes we will offer our questionnaire to the respondents which will allow us to understand the attitudes. They may also inform them about the customized jewellery. Step3. The test manager will offer the respondent some cash to help them buy the product and when the respondent buys it Trial occurs. Step4. The respondents who buy the product are then taken to another room to ask why they have chosen particular jewellery and what attributes attracted them towards that particular product. Step5. Later the respondent can be contacted through telephone by reminding about the mall experience and then the test manager can ask several experiences regarding the usage of the jewellery the respondent had bought. After talking about the jewellery experience test manager can talk about coming to the store again for purchasing more jewellery.

Output The test manager can get the opinion about various jewellery and the designs. This will be the perfect response because first of all now the respondent is a customer and secondly he has an experience with the product.

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Launch Management of KGK Jewellery Store Steps that KGK Jewellery Store will have to follow to ensure a successful launch of the brand:

Step 1: Spot potential problems This step will help identify any potential weak spots. These problems could either be in the organization’s actions or in the outside environment. Situation analysis can be done for the marketing planning step. For example, jewellery buyers may have high levels of satisfaction with the current offering in the market, and hence be uninterested in trying KGK’s new offerings. Doing a role-play of what KGK’s competitors will do after the launch of our jewellery store would be a second technique. Also, looking back over all the data accumulated in the customized jewellery line’s file would be appropriate. Original concept test reports, screening forms, early lab tests, use test reports, etc should be gone through. Simulated test market should be run to obtain a sales forecast. The forecasted figures, if not matching with the anticipated figures, will indicate toward the action to be taken. For example, anticipated trial percentage may be 15%, but the forecast might yield a lower trial figure, say 5% only. Lastly, KGK could study satisfied jewellery customers to determine the hierarchy of effects necessary to produce it.

Step 2: Select the control events Each potential problem that the organization identifies must be analyzed to determine its expected impact. Expected impact = Damage that the vent could cause * Likelihood of the event happening The firm can chalk out the problem categories using an expected events matrix. Potential damage

Likelihood Of occurrence Low

Noticeable

Harmful

Devastating

Moderate Don’t wait. Take action now.

High

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‘Alert’ variable. Watch. ‘Control’ variable. Contingency plan, and track, if possible.

Step 3: Develop contingency plans KGK has to anticipate competitive price cuts and competitive product imitation, but there may be little that they will be able to do about it. For other events such as a company failure or negative buyer reaction, KGK’s planned reaction will depend on the event. Ensuring proper shelf display of their products and having a well-designed catalogue ready for customers to look through is something that KGK Jewellers must give due importance to. Also, ensuring awareness about the launch of their brand among people is important. KGK can employ word-of-publicity with the help of some celebrity endorsers, target blogs and social networking sites to create favourable reviews for their product line, plan showcasing their jewellery line at fashion events, consider hosting a gathering of about 30-50 people to debut their line to key people in the industry and also invite bloggers, editors, buyers, and potential high profile clients. This will be a creative way for KGK to introduce their brand through their own vision.

Step 4: Design the tracking system The tracking system sends back usable data fast. Three essentials must be involved. First, laying the planned trajectory. What is the expected path? What will be a reasonable outcome, given the competitive situation of the jewellery industry in Mysore city, KGK customized jewellery features, and the planned marketing efforts? Second, there must be quick and continuing marketing research geared to measure the awareness among people, trial rates of KGK jewellery, and the sales figures that is being achieved. Third, KGK has to project the probable outcome against the plan. KGK must set trigger points (for example, trial by 15% of our customers called on, by the end of the first month). These points, if not met, will trigger the contingency plans. Some problems cannot be tracked. An example would be a competitor’s decision to cut price by 35%. During the post launch phase, KGK must conduct an After Action Review (AAR) whose goal will be to identify what went right (so it can be duplicated) and what went wrong (to identify weak areas in KGK that need to be fixed).

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