A Marketing

Analysis of

Submitted by:
ABANIA, Dan Viniste M.

Submitted to:
Prof. Arturo Ilano

2012-69903
BA 170 THY

Table of Contents
I.

II.

III.

IV.

V.

Company Overview
A. Background
B. Objectives
C. The Owners
D. Company Performance
E. Fine vs. Costume Jewellery
Current Marketing Strategies
A. Target Market
B. Tag line
C. Unique Selling Proposition
D. Consumer Needs Addressed
E. Positioning Strategy
Company and Environmental Analysis
A. SWOT Analysis
B. Porters Five Forces
C. Customer Analysis
Problems of the Company
A. Lack of Capital
B. Weak Social Media Presence
C. Weak Brand Name
D. Intense Competition
E. Target Market
Proposed Marketing Strategies
A. Objectives of Proposed Strategy
B. Recommendations
1. Increase Brand Awareness
2. Re-establish Image
3. Attract and Retain Loyal Customers
4. Reach out to the D-class
5. Modify Company Logo
6. Differentiate Products and Services
7. Timing of Promos
8. Tapping a New Market

Company Overview
Background
Diamond with Love Jewellery Shop
is a family-owned enterprise established in
August 2014 by husband and wife, Ali and Joan
Eclipse. As the name suggests, Diamond with
Love is in the jewellery industry, engaging in the
selling of fine jewellery, primarily engagement
rings and wedding rings, while also offering
jewellery-related services with flexible payment
options to customers.
As of now, Diamond with Love has just one store. However, the
owners do plan on opening a second branch either here in Metro Manila or in
their home province of Marinduque in the near future. Also, jewellery production
is quite limited due to the lack of capital to purchase necessary equipment and
tools.

Objectives
Diamond with Love aims to
provide its clients with a wide array of highquality and affordable jewellery to choose
from. With their belief that wedding rings
and jewellery in general are the physical
representations of a couples love for one
another, they strive to provide the best
jewellery crafted with much love and
passion. They also help make their clients
dream ring and jewellery a reality by
offering customization services.

Company Overview
The Owners
Mr Ali Eclipse was exposed to the
trade of jewellery at a young age. Buying and
selling jewellery was his mothers main source of
income to support him and his four sisters. As he
grew older, his passion and interest for the craft
grew as well and he dreamed of having his own
jewellery business one day.
Mrs Joan Eclipse is not much
different. She also has a great interest for
business which is why she took Business
Administration at the University of Sto. Tomas
and has just recently finished taking her Masters
degree. She also dreamed of managing her own
business.
When the couple got married, they complemented each
others interests and passion. Sharing the same dream, the two worked together
to establish their own jewellery store.

Company Performance
Just barely over a year old, Diamond with Love is still in the wee
stages of its development. The owners admit that since they have just started
with their business last year, profits are not yet that high but for now, they are not
that much concerned about profitability. Instead, they focus on building
connections and relationships with their clients so as to have a network of loyal
customers that could hopefully grow into a sizable customer base. For the
owners, this is what would sustain their business in the long-run.

Company Overview
Fine vs. Costume Jewellery
Basically, the difference between fine and costume jewellery lies in
the quality of the metal from which the jewellery piece is made and the
authenticity of the precious stone used.

Fine Jewellery

Costume Jewellery

Made from top-quality and

valuable metals like silver,
gold, and platinum

Made from less valuable

metals like copper and
brass, and sometimes even
plastic

Precious stone are usually

added

Much more affordable

Makes up for inferior quality

with artistic and catchy
designs

Lasts through generations

Significantly more expensive

VS.

Current Marketing Strategies

Target Market
Offering
high-quality
yet
affordable jewellery with flexible payment
options, Diamond with Love reaches out
to the middle-class (A, B, and C) market.
Specifically, it targets yuppies and soonto-be-wed couples.

Tag line
Diamond with Love uses the tag line Let her shine the brightest, with
Diamond with Love Jewellery. According to the owners, they chose this tag line
to pertain to soon-to-be-wed couples where the man can make his soon-to-bebride more beautiful by buying her jewellery from Diamond with Love.

Unique Selling Proposition

Aside from the high-quality
and affordability of their products, what
really sets the company apart is that they
value their relationship with their
customers and they connect with them
on a personal level. They consider them
not just as clients, but also as friends.
In addition, the owners
believe that selling wedding rings and
engagement rings is not a one-time
transaction. Just like all marriages and
relationships, they strive for a lifetime of
commitment and service to their clients
by taking care of their jewellery through
warranty and cleaning services.

Current Marketing Strategies

Consumer Needs Addressed
Since Diamond with Love targets soon-to-be-wed couples, they
promote their engagement and wedding rings as their main products in order to
reach out to this market. Aside from selling quality and affordable rings, they also
offer customization services so as to craft the rings according to the specific
designs of their clients.
Engagement rings, wedding rings, and other jewellery also need
maintenance and repair services. Striving for a lifetime of commitment and
service to their clients, Diamond with Love offers such services so that they can
continue catering to the needs of their customers even after their wedding.

Positioning Strategy (4 Ps)

Products and Services
Diamond with Loves flagship products are its
diamond engagement and wedding rings. The rings are
made from either 14k or 18k gold. The customer can
choose the colour he wants for the ring white, yellow, rose
gold, or any combination of these. The diamond used for
the rings can either be genuine diamonds or laboratorymade such as Russian diamonds. Aside from engagement
and wedding rings, they also sell other fine jewellery pieces
such as earrings and pendants. These jewellery are
customizable according to the specifications of the client.
Diamond with Love also offers jewellery-related
services. These services include customization, engraving,
resizing, gold-plating, re-setting, and repair of jewellery. The
owners also hold true to their desire to have a lifetime of
commitment and service to their clients by offering lifetime
warranty services and lifetime free cleaning on all jewellery
products purchased from Diamond with Love.

Current Marketing Strategies

Price
Engagement ring prices range from P5, 000 to P250, 000 depending
on the 4 cs of diamonds carat weight, cut, colour, and clarity. Prices of wedding
rings can go from P17, 000 to as high as P65, 000 depending on the number of
diamonds on the ring. Pendants and earrings on the other hand cost P5, 000 up
to around P100, 000 depending on the design, gold content, and precious stone
used.
The rate of each service offered by the company is given below:

Service

Price

Repair

P150 P750

Re-setting

P2, 500

Resizing

P250 P500

Engraving

P100

Gold-plating

P250 P500

Competitors
Some of the competitors
of Diamond with Love are Karat
World, Matus Jewellery, Imeldas
Jewellery, and Js Diamond. In
addition, other small entrepreneurs
and peddlers who offer costume
jewellery which are of inferior quality
but at significantly lower prices are
also competitors of Diamond with
Love.

Current Marketing Strategies

Product Space Map
High Price

Low Quality

High Quality

Small-scale
entrepreneurs
and peddlers
Low Price

Current Marketing Strategies

We can see from the positioning map that the products of Diamond
with Love are positioned to target the mass market, specifically the middle-class.
It offers jewellery at market penetration prices which are lower than those of its
competitors.
Also, we can see that Matus Jewellery, Imeldas Jewellery, and Js
Diamond are the companys direct competitors. They sell more or less the same
products and reach out to the same target market, the soon-to-be-wed couples
from the middle-class.

Place
Diamond with Love currently has
just one store. It is located in UG49 Cityland
Dela Rosa Condominium, Dela Rosa St.,
Makati City. The owners chose this location
because of its strategic location as it is close
to residential and commercial areas and
offices. Aside from that, the place is welllighted
and
spacious
enough
to
accommodate clients.
Due to the location of the store,
they mostly attract young professionals
and couples who either live or work in
Makati or nearby cities like Mandaluyong
and Manila.

Current Marketing Strategies

Promotions
Diamond with Love makes use of
below-the-line advertising. For one, they rely
mostly on social media as their marketing
medium. In their Facebook page, they
upload pictures of their finished products.
They also post announcements and updates
so that their customers are aware of any
upcoming events that the company will hold.
The owners make sure that they
regularly participate in wedding and bridal
fairs and other similar exhibits. These
wedding fairs are mostly attended by soonto-be-wed couples usually from the middleclasses. Through such events, they hope to
increase awareness for their brand.
Diamond with Love distributes
flyers and calling cards, and they also make
use of tarpaulins. Just recently, they also
held a raffle draw event where the lucky
winner can win a free engagement ring.
Diamond with Love also relies on word-of-mouth. So far, it has been
quite effective since a substantial number of their new customers say that they
have been referred to them by their friends who have purchased their products
or availed of their services in the past.

Analysis
SWOT Analysis
Strengths

Weaknesses

Skilled and knowledgeable

personnel
Young owners who can relate
easily to their clients

Limited capital

Weak brand name

No concrete marketing strategy

Good relationship with customers

High-quality products which can

be customized according to client
specifications

Lots of similar products offered by

competitors in the market

Brand image is similar to its

competitors

Opportunities

Threats

Lots of untapped marketing

channels

Increasing number of competitors

in the industry

Potential increase in demand for

jewellery due to growing fashion
sense among Filipinos

Sellers of costume jewellery at

much lower prices

Smuggled jewellery which leads

to good-quality jewellery being
sold at low prices

Amendments to restrictions on
trading in the jewellery industry

Analysis
Porters Five Forces
Bargaining
Power of Buyers

Threat of New Entrants

Increasing number
of entrants in the
industry

Customers have lots

of choices of where
to buy fine jewellery

Most buyers prefer

costume jewellery due
to its affordability

Rarely experience
problems with
suppliers
Government
regulations can
restrict the acquisition
of raw materials

Industry Competitors

Lots of products
similar to the flagship
products of Diamond
with Love are
available in the
market

Threat of Substitutes

Stiff competition in
the industry
especially among
SMEs

Bargaining Power
of Suppliers

Analysis
Porters Five Forces

Threat of New
Entrants

Due to the growth of the jewellery industry, there

has been an increase in the number of entrants and
competitors in the industry.

Threat of
Substitutes

Diamond engagement and wedding rings are some

of the most common jewellery products in the market.
Therefore, there are lots of products similar to the flagship
products of Diamond with Love available in the market.

Soon-to-be-wed couples are characterized

as being highly sensitive to prices
and conscious
about
Customers
have lots
of choices as to where they
Bargaining
their savings andcan
expenditures.
A
good
chunk
of
their
purchase fine jewellery. Most buyers also prefer costume
Power of
personal
savings would be set aside for their wedding
jewellery over fine jewellery due to its affordability.
expenses
Buyers while a more sizable portion will be for starting
their lives together buying or renting their own house,
buying furniture, among others. What these customers
tend to look for are products that give them the most
Diamond with Love rarely experiences problems with
value at the most affordable price.
Bargaining

Power of
Suppliers

its suppliers R. Abacan General Merchandising and Gemsbyme

Trading. However, government regulations can restrict the
companys acquisition of materials for production.

Industry
Competitors

There is stiff competition in the industry especially

among SMEs which makes up 90% of the total number of firms
in the industry. Most of the SMEs cater to the same market, the
middle-class.

Analysis
Customer Analysis
The usual customers of Diamond with Love
are the yuppies who work or live in Makati and in nearby
cities such as Mandaluyong and Manila. They are in their
mid-20s to early-30s and most belong to the C class.
They are usually soon-to-be-wed couples who visit the
store with their partner. Based on the company s
historical data, its peak season occurs during the months
of November and December.

Soon-to-be-wed couples are characterized

as being highly sensitive to prices and conscious about
their savings and expenditures. A good chunk of their
personal savings would be set aside for their wedding
expenses while a more sizable portion will be for starting
their lives together buying or renting their own house,
buying furniture, among others. What these customers
tend to look for are products that give them the most
value at the most affordable price.

Problems
From the analysis of the company and the brand, the following
problems were identified:

Limited Capital
Having limited capital greatly limits Diamond with Loves ability to
grow and expand. Should the demand for jewellery products increase in the
future, Diamond with Love will not be able to take full advantage of the situation
due to its inability to invest on production equipment.

Weak Social Media Presence

Despite having its own Facebook
page, Diamond with Love only has a little over
700 people liking and following it on Facebook
compared to its competitors like Matus Jewellery
who has 20,000 people liking their page. Diamond
with Love also does not have its own website
where customers can more freely access
information about the company.

Weak Brand Name

The companys brand name has yet to
become a mainstream brand among jewellery
enthusiasts and even among soon-to-be-wed
couples. Although the company does have some
loyal customers who are also willing to refer them
to their friends and colleagues, Diamond with
Love still has a small customer base and the
company is often overshadowed by its more
established competitors.

Problems
Intense Competition
Most SMEs in the industry
also target the middle-class market.
Since most of its competitors also
target
soon-to-be-wed
couples,
diamond engagement and wedding
rings are among the most common
jewellery products in the market. This
Small-scale
puts Diamond with Love in an intense
entrepreneurs
battle for market share against a
and peddlers
multitude of other brands who typically
offer the same products.
Diamond with Love is woefully unprepared for such intense
competition and it currently struggles to compete against other more wellestablished companies.
In addition, small-scale entrepreneurs and peddlers of costume
jewellery can also threaten Diamond with Loves position. Their products,
although of inferior quality, are considerably cheaper and more attractive in terms
of price to customers.

Target Market
Diamond with Love is not getting the most out of its target market. As
mentioned before, the company reaches out to soon-to-be-wed couples
belonging to the middle-class, particularly the B, C, and D socioeconomic
classes. In my opinion, this is a sound strategy since the middle-class comprises
the bulk of the Philippine population.
Among the middle-class, the D class is the largest. Unfortunately for
Diamond with Love, most of its customers are from the B and C classes only. If it
hopes of further increasing its customer base, then they should probably consider
reaching out more the highly populated D class.

Recommendations
Diamond with Love Jewellery is a young business that has much
potential to prosper in the industry. For one, their products are of top-notch
quality, made from high-quality materials and by individuals with a lot of
experience in the craft. In addition, the owners are very much dedicated to what
they do, are very hands-on in dealing with their clients, and dream to make their
company grow. With the proper guidance and advice, plus a well-planned
marketing strategy, their dream can become a reality.

Objectives of Proposed Marketing Strategy

The overall objective of the proposed marketing strategy is to
increase brand awareness for Diamond with Love. Since its products are in the
growth lifecycle, the company should focus on reaching out to a broader
audience. With an increasing customer base, profitability is sure to follow suit.
In line with this, the company should find ways to differentiate itself
from its direct competitors. Differentiating its products and services will be
necessary in order to dominate its target market where numerous other jewellery
companies are also hoping to do the same. To achieve these objectives, I
propose the following marketing strategies to the owners of Diamond with Love.

Recommendations
Increase Brand Awareness
To increase brand awareness, Diamond with Love should continue
actively participating in wedding fairs and exhibits. This would allow customers to
know more about the brand.
In addition, the company should maximize its use of social media.
Although having its own Facebook page, Diamond with Love has a very small
number of followers. The owners should revitalize their Facebook page by
regularly posting photos, updates, and other interesting and engaging content.
They should also make sure to interact with their customers and respond to their
inquiries. They might also try hosting simple games on their page to keep their
followers engaged.
Aside from Facebook, it would also be beneficial for the company to
have its own website where customers can freely access other information about
the company.

Re-establish Brand Image

Currently, the brands image is of high-quality jewellery at affordable
prices. But thats the same as the image of most of its competitors. With this,
Diamond with Love can try to re-establish its image as the place to buy jewellery
that would help make your dream wedding a reality. They can do this by asking
loyal customers for testimonials where they can talk about how satisfied they
were with the products and services of the company and how the company
helped them realize their dream wedding. With their permission, they can post
pictures of the happily married couples who bought their engagement or wedding
rings from Diamond with Love.
In line with this, the owners may also consider changing their current
tag line. Although the current tag line does address soon-to-be-wed couples, it
doesnt really leave an impression on the market. Instead, they may try a tag line
that corresponds to their re-established brand image that goes along the lines of
Start your lives together the perfect way with Diamond with Love Jewellery or
Make your dream wedding a reality with Diamond with Love Jewellery.

Recommendations
Attract and Retain Loyal Customers
Loyal and repeat customers are very important for growing
businesses like Diamond with Love. Thus, the company should provide
incentives for potential first-time clients. This may include bundling products like
engagement and wedding rings, or providing discounts.
It is very crucial for the company to get those first-time clients. With
the lifetime services provided by Diamond with Love on products purchased from
them, plus the proposed discounts offered for additional purchases, these firsttime clients would most certainly further avail the services of the company. This
would present more opportunities for Diamond with Love to satisfy their clients
with their impeccable service and hopefully, convince them to make further
purchases.
To retain loyal customers, they can provide benefits to clients who
purchased their engagement and wedding rings from the company by offering
discounts on further purchases that they make any time in the future. In addition,
they can hold special events intended specifically for loyal customers.

Reach-Out to the D-class

The companys use of below-the-line advertising such as the
distribution of flyers and participation in fairs and exhibits has helped it attract
customers from the B and C classes. However, to tap the full potential of the
middle-class, the company should be able to penetrate the D market which
comprises the bulk of the middle-class. To do this, the company should rely more
on above-the-line advertising which is geared more towards the mass market.
They can consider other advertising channels such as newspapers, radio ads,
and TV appearances. In addition, the company should consider opening their
second branch in places that cater mostly to the D market like malls.

Recommendations
Modify Company Logo
The owners should also consider modifying their logo. The colour
grey that they use for their background is inappropriate for their target market of
soon-to-be-wed couples. Grey exudes the feeling of being emotionless and calm,
and many consider it boring.
Instead, they may go for a darker and catchier colour like royal blue.
Royal blue implies professionalism and integrity, but it also means trust and
loyalty, two virtues necessary for a happy couple. This colour communicates
effectively to young couples and connects to the proposed brand image of
jewellery for dream weddings.

Differentiate Products and Services

Due to the large number of competitors and similar products in the
market, Diamond with Love should differentiate their products and services to
make them stand-out from the rest. One way to do this is by adding more
customization options for their jewellery products. In addition, they can highlight
some of the features of their jewellery which they believe is better compared to
their competitors products such as the durability or reparability of their jewellery.
Diamond with Love can also offer additional services such as online
reservation or ordering for wedding rings and other jewellery pieces in order to
make purchasing more convenient.
The company should also consider adding product extensions to their
wedding jewellery product line. Such extensions may include earrings or
necklaces specially designed for marriages and with the customizations specified
by the client.

Recommendations
Timing of Promos
The companys peak months are November and December since a
lot of marriages are held in December and people are more willing to spend
during the holiday season. However, based on statistics, the top two months in
terms of the number of marriages are February and May. Therefore, the company
should try to time the bulk of its promos accordingly, by intensifying their
advertising and promotions during these two months and the months immediately
preceding them.

Tapping a New Market

Lastly, due to the intense competition in the middle-class market, the
owners may consider tapping an entirely new market like the upper-class (A and
B) market. There are relatively less competitors in this market and much more
potential to grow. In addition, the products of Diamond with Love are also of a
high enough quality to justify a higher price point aimed at the upper-class.
However, the upper-class market is smaller compared to all other classes. Also,
the company may have to compete with other larger jewellery companies which
immediately puts Diamond with Love at a disadvantage due to its lack of capital.

References

Personal Interview with Mr and Mrs Ali and Joan Eclipse, owners of Diamond
with Love

https://www.facebook.com/DiamondWithLove?fref=ts

http://invest.cfo.gov.ph/pdf/part1/development-of-the-jewelry-industry.pdf

http://www.euromonitor.com/jewellery-in-the-philippines/report