Market research proposal Topic: Jewellery

Submitted to: Dr. M R Suresh

Term III, PGDM 2013-15 Date: 06/02/2014

Submitted by: Group B3 Apoorva R Sutar (13071) Yogesh Deepak Bandari (13076) Himanshu Kumar Singh (13085) Meghana R Bewoor (13094) Nirmal Kumar (13099) Siju S G (13112)

Table of Contents
EXECUTIVE SUMMARY AND BACKGROUND: ................................................................. 3 HYPOTHETICAL SITUATION AND BACKGROUND ............................................................................ 3 PROBLEM DEFINITION/ OBJECTIVE OF THE RESEARCH: ......................................... 3 GENERAL OBJECTIVE: .................................................................................................................. 3 SPECIFIC OBJECTIVE: ................................................................................................................... 3 APPROACH TO THE PROBLEM: ........................................................................................... 4 RESEARCH DESIGN: ................................................................................................................. 5 PRIMARY RESEARCH:.................................................................................................................... 5 SECONDARY RESEARCH:............................................................................................................... 5 EXPLORATIVE RESEARCH:............................................................................................................ 5 DESCRIPTIVE RESEARCH: ............................................................................................................. 6 FIELD WORK AND DATA COLLECTION: ........................................................................... 6 SOURCE OF DATA: ........................................................................................................................ 6 PRIMARY DATA: ........................................................................................................................... 6 SECONDARY DATA: ...................................................................................................................... 6 POPULATION AND SAMPLE AREA: ................................................................................................ 6 SAMPLE: ....................................................................................................................................... 6 SAMPLE SIZE: ............................................................................................................................... 6 QUESTIONS TO BE SURVEYED ON: ................................................................................................. 6 DATA ANALYSIS:....................................................................................................................... 7 TECHNIQUES USED IN DATA ANALYSIS: ........................................................................................ 7 REPORTING: ............................................................................................................................... 7 COST AND TIME: ....................................................................................................................... 7

Executive Summary and Background:

Indian gold jewellery industry is the largest globally, valued at ~USD 40 billion (including recycled volumes), driven by a gamut of cultural, social and demographic factors. India along with China is the two largest consumers of gold, with jewellery constituting bulk of the yellow metal consumption. Contribution of organized retail to total jewellery consumed in India has grown to ~18% from less than 5% (largely over the past decade), aided by the widening retail network of organized players and shifting consumer preferences towards organized / branded jewellery. Jewellery consumption over the past decade and rising quality awareness of customers has also provided a fillip to the organized retail segment, which is banking on its reliability and quality to compete against the highly fragmented unorganized jewellers.

Hypothetical situation and background: Chamundi jewelers which has been into
jewelry business of gold, silver and diamonds from past 50 years with the trust and reputation gained for the quality and its well-known customized and ready-made ornaments to some extent has observed a decline in sales from past 2 years because of branded shops occupying in the market with the ready-made ornaments and personalizing them.

Problem Definition/ Objective of the research:

General Objective:
The client wants to explore the possibilities in the emerging branded jewelry market. They want to find if this is an underlying cause for the slight decrease in the sales at his shop lately. They also want to further explore if relationship marketing has potential in this market sector. The purpose of the research is restrained only to the needs of the client. a. To decide whether to continue with the existing business. b. To decide whether to expand and convert to organized sector to be one of the major player. The client has agreed that the research will be limited to the city of Mysore and the nearby surrounding areas.

Specific Objective:
Whether to go for online marketing as major brands are all online.

Approach to the problem:

a. List the major branded jewelers in Mysore. Few of them are: Malabar Tanishq Joy Allukas Bhima Jewellers Kalyan Jewellers Jos Allukas Gitanjali Jewellers

b. Factors affecting people and building trust by the major players on the customers. c. Know the sales trend of the client from the time it has started dropping, to recognize the target segment of the client and the customers from which they gain the maximum sales in a particular year. d. Differentiate between the client and other major brands on basis of traditional jewelry and the proper mix of traditional and modern design jewelry and what percent does the client hold on readymade jewelry. Also know from which method does maximum sales happen that is from readymade or from customized ones. e. Know the product category from which the maximum sales occur and note down whether it is from customized or ready-made from client side and know the maximum sales that happen from which of the category from branded jewelers. f. Determining the trust developed by the client on the customers regarding their service and name in the market from past 50 years and how is the client perceived by the customers in terms of the product delivery and what kind of products for example is it one stop for all the required jewelry for the customers.

g. Information regarding the maximum sales on 18 or 24 carat gold, diamond and platinum jewelry. h. Number of loyal customers from the client who have switched to brands.

i. Survey conducted to know the opinion of the customers regarding the branded jewelry and the unorganized sector jewelry items on various parameters some of which are listed above and others.

Research Design:
Primary research:
Primary research is new research, carried out to answer specific issues or questions. It can involve questionnaires, surveys or interview with individual or small groups. Quantitative and Qualitative research: Quantitative research presents information numerically. Here we get to know from this research survey the expenditure on jewelry for different sector and category of jewelry, frequency of purchase etc. Qualitative research is to find out what is in a consumers mind about things that cannot be directly observed and measured. Here we try to gather the information through survey regarding the opinion of the branded jewelry and unorganized sector jewelry, their trust, brand image because of celebrity endorsement and purity of jewelry, their service and behavior during return or exchange of jewelry items.

Secondary research:
Secondary research makes use of information previously researched for other purposes and publicly available. Quantitative and Qualitative research: Quantitative Research: Through secondary data we can get to know about the brands from internet regarding their presence, their relationship with different brand jewelry, their online presence and how many jewelry are they selling online etc. Qualitative research: Through the comments and reviews by the customers from online we can get an insight of how people are associated with the brand and what perception or opinion do they have regarding the brand and the brand jewelry.

Explorative Research:
Exploratory research of research conducted for a problem that has not been clearly defined. It often occurs before we know enough to make conceptual distinctions or posit an explanatory relationship.

In this context we assume that after branded shops have stepped in the client sales have started showing decline. So we are exploring if this is the reason and to what extent it is affecting the sales.

Descriptive Research:
Descriptive research is used when the objective is to provide a systematic description that is factual and accurate as possible. Here the data is collected from the survey based on the questions we pose and we get proper and practical opinion for that which is to be used for problem solving and decision making.

Field Work and Data Collection:

Source of data: Both the primary data and the secondary data will be needed to conduct this
study.

Primary data: The primary data will be collected from the consumers directly. Interviews and
questionnaires will be used for this purpose. Questionnaire shall be passed with the organisation when time comes. Not in the proposal.

Secondary data: The secondary data will be collected from internet sources, reports and
journals.

Population and Sample Area: Population is consumers in and around Mysore of all
income groups specifically household.

Sample: Sample is all nuclear and joint families residing in and around Mysore. One member
of the family to be interviewed and questioned on behalf of all (mostly females). Any family member of 18 years and above to contribute to the survey. And the person can be either male or female.

Sample Size: Sample Size to be considered is around 50 families. Either equal number of
nuclear families or depends on the family in Mysore.

Questions to be surveyed on:

a. Buying behaviour pattern on silver, gold, diamond, white gold and platinum for different occasions from branded shops. b. Expenditure on jewellery and frequency of purchase. c. Preference for readymade and customized jewellery for a particular category of jewellery. d. Preference for traditional, modern or mixed kind of jewellery by majority of consumers. e. Do Mysoreans prefer shopping jewellery online and if yes what category would they shop.

Data Analysis:
Techniques used in data analysis:
a. Data Editing: Process to identify omissions, ambiguities and errors in responses. b. Data preparation: Pivot table would help in organising the data in more easier and compact form of different parameters. Can be considered for multivariate analysis. c. Tabulation: Frequency distribution, descriptive statistics for nominal, ordinal, interval and ratio scaled data types. d. Multiple regressions: A linear combination of the factors responsible for the outcome. e. For metric data t-test and z-test can be used. And for more independent samples chisquare and ANOVA can be used to decide on advertising and improvise in decision making.

Reporting:
Reporting can be done at both levels one is at client side for any other inputs from their side and to show the progress. At the researchers level where in to report to the supervisors and senior members (Prof. M.R. Suresh) for guidance, expedite the tasks and avoiding the possible errors.

Cost and Time:

Cost incurred would be from the questionnaires prepared and print out taken. Travelling and staying expenses for conducting the survey. Time required to do come up with the solution and for survey is anywhere from 4-6 weeks of time. Survey can be conducted at any time as females are most influencing in decision making and would be available at homes at any time.

Reference: www.google.co.in