Summer Internship Report On

Marketing of Diamonds and its Variations as a Product

Submitted To: Prof. Nina Muncherji Chairperson- MBA FB&E Institute of Management Nirma University Prof. Harismita TrivediFaculty GuideInstitute of ManagementNirma University

Submitted By:Vaibhav MehtaRoll No.: 124258FB&E (2012-14)

Place Ahmedabad 1st July, 2013

Type of the Report:Summer Internship 2013, Project ReportAuthor of the Report: Vaibhav MehtaDate of Submission: 29th June, 2013Project Undertaken: Experiential Learning in Kiran Gems Pvt Ltd.Company Name:Kiran Gems Pvt. LtdProject Duration: April 8, 2013 to June 8, 2013.Head office address: - FE5011, Bharat Diamond Bourse, G block, Bandra Kurla Complex, Bandra (east), Mumbai 400051.

Acknowledgement

In the realization of ones goal man is not an independent identity. It is the collectively efforts of the people from different circle. Keeping this in mind, I would like to take this opportunity to show my appreciation to all those who have contributed in one-way or other, small or big.In this context, I would like to thank, the Owner partners Mr. Vallabhbhai S. Patel, Mr. Babubhai S. Lakhani and Mr. Mavjibhai S. Patel of Kiran Gems Pvt Ltd for giving me the opportunity to work in organization.I would like to thanks to other staff member of organization, especially Manager Mr. Manu Patni and Mr. Swaroop.I am grateful to Institute of Management, Nirma University for giving me this opportunity to learn the practical aspects of management course.I express my sincere thanks to Prof. Harismita Trivedi who guided me in my project and gave me her valuable suggestions and encouragement.Last but not the least, my heartfelt love for my parents and friends, whos constant support and blessing help me throughout this project and finally I thank almighty god for his love enduring forever.Vaibhav Mehta 124258

History and about the company"KIRAN" itself in an identity in the world for Diamond Manufacturers since 1985 and today it acclaims the title of "The World's Largest Manufacturer of White Diamonds below 1.50 carats and one of the foremost Jewellery manufacturers of the world". The Company also is India's largest provider of employment opportunities in Diamond industry, with more than 31,000 skilled craftsmen and professionals under its umbrella, adding value to the diamonds it creates. With a massive production of nearly 1.61 Million carats of polished diamonds, KIRAN facilitates the growth of over 1000 excelling jewellery businesses worldwide. Kiran also manufactures jewellery and its key markets are U.S.A., U.A.E., Hong Kong and India and are one of the top five Jewellery vendors in U.S.A.

Being a DTC Sight Holder Company, KIRAN has achieved benchmarks in terms of quality, complying with to the Best Practice principles (BPP) and Ethical norms of the industry. With a massive production of nearly 1,610,000(1.61 Million) carats of polished diamonds annually, KIRAN facilitates in the growth of over a 1000 excelling jewellery businesses world-wide.KIRAN has also received various awards from the Gems and Jewellery Export Promotion Council in India for excellent performance in industry that includes:1. 1st Place Performer of the year, since 2008 till present, by GJEPC (DTC Category).2. Kiran Gems BVBA, the Highest Importer of cut and polished diamonds, since 2008 till present, by GJEPC (Europe Category).3. Kiran Jewelry has also won award for Export of studded Jewellery for the year 2009-10, 2010-11 and 2011-12.Products: Their product range includes finely cut and crafted natural diamonds of different shapes - Round, Marquise, Pears Princess, Emeralds, Hearts and Ovals from the smallest to 1.5 carats stone and above. They have a unique grading system developed through the decades of experience of our principals synchronized with global standards. The majority of their products are available in 17 different grades of colour and clarity that go through a stringent quality control module where every stone is scrutinized by their experienced craftsmen and only then is allowed to be a part of our collection.They can't say that their collection includes as many diamonds as there are stars in the sky, but they claim that the sparkle of their diamonds will last forever.Kiran Group had its foundation seeded in form of a partnership firm in the year 1985. Three brothers, Mr. Vallabhbhai S. Patel, Mr. Babubhai S. Lakhani and Mr. Mavjibhai S. Patel were the founding members of the firm.

Vision and Mission statements

To be a customer centric company with a totally integrated value chain

Kiran Group aspires to achieve a balance between technical and distribution strengths, prioritizing our customer demands by providing them an exclusive breadth of products.

Kiran Group aspires to keep providing its customers world class high quality products with unique service packages to increase their downstream efficiencies.

Relationships are the most valuable investment and no effort is spared to keep the sparkle in them alive. We work at them, chisel them and polish them, so that like our diamonds, they endure the test of time.

Mr. Vallabhbhai Patel- Chairman

The McKinsey 7S Model

The Seven ElementsThe McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements:

Hard Elements Soft Element

Hard Elements Soft Elements

"Hard" elements are easier to define or identify and management can directly influence them: These are strategy statements; organization charts and reporting lines; and formal processes and IT systems.

"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful.

Strategy: The plan devised to maintain and build competitive advantage over the competition.

Structure: The way the organization is structured and who reports to whom.

Systems: The daily activities and procedures that staff members engage in to get the job done.

Shared Values: Its called "super ordinate goals" when the model was first developed, these are the core values of the company that are evidenced in the corporate culture and the general work ethic.

Style: The style of leadership adopted.

Staff: The employees and their general capabilities.

Skills: The actual skills and competencies of the employees working for the company.

Porters Five Force Model

Porter five forces analysis is a framework for industry analysis and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven to normal profit. Three of Porter's five forces refer to competition from external sources. The remainder are internal threats. Porter referred to these forces as the micro environment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a business unit to re-assess the marketplace given the overall change in industry information. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competencies, business model or network to achieve a profit above the industry average. A clear example of this is the airline industry. As an industry, profitability is low and yet individual companies, by applying unique business models, have been able to make a return in excess of the industry average. Porter's five forces include - three forces from 'horizontal' competition: the threat of substitute products or services, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers. This five forces analysis is just one part of the complete Porter strategic models. The other elements are the value chain and the generic strategies. Porter developed his Five Forces analysis in reaction to the then-popular SWOT analysis, which he found un-rigorous and ad hoc. Porter's five forces are based on the Structure-Conduct-Performance paradigm in industrial organizational economics. It has been applied to a diverse range of problems, from helping businesses become more profitable to helping governments stabilize industries.

Five forcesThreat of new entrantsProfitable markets that yield high returns will attract new firms. This results in many new entrants, which eventually will decrease profitability for all firms in the industry. Unless the entry of new firms can be blocked by incumbents, the abnormal profit rate will trend towards zero (perfect competition). The existence of barriers to entry (patents, rights, etc.) The most attractive segment is one in which entry barriers are high and exit barriers are low. Few new firms can enter and non-performing firms can exit easily. Economies of product differences Brand equity Switching costs or sunk costs Capital requirements Access to distribution Customer loyalty to established brands Absolute cost Industry profitability; the more profitable the industry the more attractive it will be to new competitors.

Threat of substitute products or servicesThe existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives. For example, tap water might be considered a substitute for Coke, whereas Pepsi is a competitor's similar product. Increased marketing for drinking tap water might "shrink the pie" for both Coke and Pepsi, whereas increased Pepsi advertising would likely "grow the pie" (increase consumption of all soft drinks), albeit while giving Pepsi a larger slice at Coke's expense. Buyer propensity to substitute Relative price performance of substitute Buyer switching costs Perceived level of product differentiation Number of substitute products available in the market Ease of substitution. Information-based products are more prone to substitution, as online product can easily replace material product. Substandard product Quality depreciationBargaining power of customers (buyers)The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes. Buyer concentration to firm concentration ratio Degree of dependency upon existing channels of distribution Bargaining leverage, particularly in industries with high fixed costs Buyer switching costs relative to firm switching costs Buyer information availability Availability of existing substitute products Buyer price sensitivity Differential advantage (uniqueness) of industry productsBargaining power of suppliersThe bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labour, and services (such as expertise) to the firm can be a source of power over the firm, when there are few substitutes. Suppliers may refuse to work with the firm, or, e.g., charge excessively high prices for unique resources. Supplier switching costs relative to firm switching costs Degree of differentiation of inputs Impact of inputs on cost or differentiation Presence of substitute inputs Strength of distribution channel Supplier concentration to firm concentration ratio Employee solidarity (e.g. labour unions) Supplier competition - ability to forward vertically integrate and cut out the BUYERIntensity of competitive rivalryFor most industries, the intensity of competitive rivalry is the major determinant of the competitiveness of the industry. Sustainable competitive advantage through innovation Competition between online and offline companies Level of advertising expense Powerful competitive strategy Firm concentration ratioIf competition is seen than Kiran Gems have an intense rivalry with only few competitors Harey Krishna, Rosy Blue, Kiah Jewellery

Diamond as a product, how it has different variations is explained below:

Diamond Shape refers to the overall outline of the finished gem. Different shapes have different numbers of facets (cuts). There are many different shapes offered by fine jewellers. When you're buying diamond stud earrings or rings you need to choose what type of diamond shape you want.

Round Cut Because of its maximum brilliance, the round brilliant cut diamond is by far the most popular and most researched diamond shape available today, and is the generally the most expensive. Round brilliants make up the vast majority of diamonds found in engagement rings.

The round brilliant cut diamond is named "brilliant cut", a brilliant cut diamond regardless of the shape is cut with the same facet patterns on the top and bottom of the diamond. This gives the diamond very similar reflective properties. There are 58 facets in a Round Brilliant Cut including the culet.

Princess Cut

The Princess cut is the second most popular cut shape for diamonds, next to a round brilliant. The princess cut is a relatively new diamond cut, having been created in the 1960s. A princess cut will look slightly smaller than a round diamond of the same carat weight because princess cuts are cut deeper in order to form the shape. This is a square or rectangular cut with numerous sparkling facets.

Oval Cut

The oval is considered to be a brilliant cut stone because it is cut very much like a round brilliant cut, this adds to the diamonds brilliance. The oval is seen most frequently cut in the standard 58 facet brilliant pattern.The prices for ovals are relatively high because of the strong demand. Oval diamonds are another popular choice for engagement rings or for any diamond jewellery.Heart Cut

The heart is the ultimate symbol of love. The unique look of the heart-shaped diamond helps make it a distinctive choice for a variety of diamond jewellery. The heart shape is a brilliant cut which typically contains 59 facets but that can be modified so that the number of pavilion main facets may be 6, 7, or 8.The heart shape diamond looks great in engagement rings and also looks great as a solitaire necklace.

Pear Cut

Some of the world's largest and most famous diamonds were cut in to the pear shaped brilliant cut. The pear shape is a combination of the round and marquise brilliant cuts and usually has the 58 facet brilliant pattern.The unique look of the pear shape helps make it a popular choice for a variety of diamond jewellery.

Radiant cut

A radiant-cut looks equally beautiful set with either baguette or round side-diamonds. The radiant cut diamond is the first rectangular cut to have a complete brilliant facet pattern. Because of its design, this cut requires more weight to be directed toward the diamond's depth in order to maximize brilliance.

Cushion cuts

They are a little less brilliant than modern round brilliant diamonds, but are more dispersive. The cushion cuthas been popular for more than a century. This is a square or squarish-rectangular cut with rounded corners and 58 brilliant-style facets.

Marquise cut

The marquise brilliant is a football-shaped modified brilliant. The shape of a marquise diamond can maximize carat weight, giving you a much larger-looking diamond. The marquise is usually cut as an adaptation of the 58 facet standard brilliant.The demand for marquise brilliant diamonds has declined in recent years with the oval brilliant taking over the elongated symmetrical fancy shape of choice.

Emerald cut

The emerald cut is not a brilliant cut, but is called a step cut which means it has rows of facets. This shape highlights the clarity of a diamond.The emerald cut can be one of the least expensive to cut because its shape is most like the natural shape of the rough diamond crystal

Following are the different categories of any diamond. And the cost of the product is decided upon numbers of the diamonds:-

Following are the 4cs which are to be considered while marketing any kind of diamond products. Different customers have different perception while buying any product; hence the variables available to them should be taken care of. And thats what will be the best way to sell product in the market. Sell what customers demand for should be any companys motive. This firm believes in sharing knowledge about diamonds and its necessary attributes that affects its valuation. The knowledge here would serve handy while buying or sellingloose diamonds. A diamonds quality and value is judged on four fundamental characteristics, known as the Four Cs (4Cs). These are the clarity, colour, cut and carat weight of a diamond. The higher a diamond is graded on one or all of these characteristics, the scarcer and more costly the diamond will be. Most of us will choose one or two of these characteristics at a higher grade at the expense of the others. This will reflect a personal preference. Some buyers prefer a large sized diamond and are not too concerned with the clarity. On the other hand some buyers look for a well cut diamond and will be prepared to compromise on size and clarity.

Carat

Carat is the unit of measurement used to weigh diamonds. One carat is the equivalent of 200 milligrams, or 0.2 grams. The word carat is derived from carob seeds that owing to their very slight weight-variance were used to balance scales in ancient times. Due to the processes involved in the formation of nature, large diamonds are created less frequently then smaller sized diamonds. Due to the rarity of larger sized diamonds they command substantially higher prices than smaller sized diamonds. For instance, a one carat diamond will cost more than two half carat diamonds of equal colour, clarity and cut. However the weight of a diamond is but one of the factors used to value a diamond, and it should be understood that two diamonds of equal weight may have very different values, depending on their cut, clarity and colour. In fact, a smaller but perfectly cut diamond of whiter colour and flawless or near- flawless clarity can be more valuable than a larger diamond with a weaker shade of white and less clarity.What to consider when deciding on diamond size:It can often be difficult to choose between the size and the other criteria of a diamond but by considering the following factors your decision may be made

Personal preference do you or your loved one prefer to wear larger pieces of jewellery?

Finger size slender fingers can make diamonds appear larger than their actual size;

Physical activity a person who is very physically active will more likely knock or bump their ring;

Setting style will the selected setting be aesthetically suitable to the diamond?

Color

While diamonds can be found in almost every colour of the rainbow, colourless diamonds remain the most popular. When describing the colour of a diamond reference is being made to the degree of colour found in that diamond. The less colour displayed in a diamond the better the colour grade. The notable exception to this would be in the case of fancy coloured diamonds, such as pink, yellow, green and blue. In fancy coloured diamonds a strong presence of colour would improve the diamonds colour grading. Diamonds displaying little colour will allow more light to pass though, creating a prism effect, with its spectrum of colours and flash, known as fire. Diamonds are allocated a grade according to the level of colour they possess. This grading is alphabetical, starting with a D grade given to colourless diamonds and further movement down the alphabet for diamonds with progressively larger amounts of colour, ending in a Z+ grade.The colour grades can be described as follows:

D, E & F grades:

These are colourless diamonds. Only experienced diamond graders are capable of differentiating between D & E colours, and then only if these diamonds are unmounted. Diamond graders can more consistently identify F colour diamonds.

G, H, I & J grades:

These are near colourless diamonds, and very often appear colourless when mounted and graded face up. Non- diamond graders will not be able to detect colour in these diamonds. The average consumer will only be able to detect a subtle presence of colour around the J grade.

K, L & M grades:

Most consumers will be able to identify colour in these diamonds, when mounted. However when these diamonds weigh less than half a carat and are mounted in white metal, they may still appear as colourless.

O Z grades:

Most consumers will be quick to notice colour in these diamonds, regardless of how the diamond is mounted. These diamonds will range between a very-light yellow and light yellow, however brown and grey tones may also be identified.

What to consider when deciding on your diamonds colour:Where your setting is in yellow gold you may be able to chose a lower colour grade than if you were choosing a platinum or white gold setting;

Yellow shades, found in K-M graded diamonds, may draw out the latent character of a jewellery piece, depending on the piece selected.

A word on fluorescenceFluorescence is the reaction of some diamonds to exposure of UV lighting. Generally it has been understood that fluorescence makes clear diamonds appear as cloudy and yellow tinted diamonds appear as clear when subject to UV lighting. Under normal lighting conditions fluorescence is not detectable. However, the presence or absence of fluorescence has had only minor importance in the purchasing decisions of most diamond buyers. This is because of the following:

Fluorescence is only detectable under UV lighting;

Under UV lighting even trained gemmologists are unable to consistently agree on the effects of fluorescence and;

Some buyers prefer the aesthetic effect of fluorescence.

Their suggestion is that buyers who are able to purchase colourless or near-colourless diamonds at reduced prices because of the presence of fluorescence, should seriously consider this option.

Clarity

As a product of nature diamonds may bear traces of the pressure and processes involved in their formation. These traces may appear on the diamond either externally or internally and are referred to inclusions. Where appearing internally on the diamond these inclusions may include air bubbles, cracks and non-diamond mineral deposits. Inclusions appearing externally may include scratches, pits and chips. Not all diamonds have inclusions, and those without, are rare and often the most expensive. Diamonds with inclusions are graded according to the amount of inclusions detected. Diamonds are graded for clarity under 10 x magnifications.

No.CategoryDetails

FL.FlawlessShows no inclusions or blemishes when viewed with 10x magnification.

IFInternally FlawlessContains no inclusions under 10x magnification; minor blemishes tolerated.

VVS1 & VVS2Very Very Slight IncludedContains minute inclusions that are extremely difficult to locate under 10 x magnifications.

VS1 & VS2Very Slight IncludedContains minute inclusions, such as clouds, crystals, or feathers, which are difficult to locate with 10x magnification.

SI1 & SI2.Slightly IncludedNoticeable inclusions under 10x magnification, including clouds, knots, crystals, cavities, and feathers.

SI3Slightly IncludedContains inclusions that are very easy to see with 10x magnification. Grading split between SI2 and I1.

I1, I2, I3IncludedContains very obvious inclusion under 10 x magnifications. Usually can be seen with the naked eye. Clarity might also impede transparency and affect brilliance.

Each diamond inclusions are unique to that diamond, with no two diamonds displaying the exact same inclusions. The Gemological Institute of America (GIA) diamond grading reports include graphic illustrations of inclusions found in diamonds. These graphic illustrations match the inclusions actually found in the diamonds.What to consider when deciding on your diamonds clarity:While certainly setting the ultimate standard in an ideal diamond, flawless diamonds are not alone in providing exquisite diamonds. Generally, all of the grades, excluding the grade, will be more an indication of a diamonds value than its unmagnified appearance. In other words, despite differences in grading, these diamonds will display few outward differences. They suggest us choose a diamond that is not visible to the naked eye. Diamonds are those in IF SI2 clarity grading ranges. Some brief details about these diamonds may assist you in making your decision:VVS and VS graded diamonds are more expensive but are excellently valued, with difficult to detect inclusions;

SI1 and SI2 graded diamonds are more affordable with inclusions that remain almost invisible to the naked eye;

Cut

Cut is a reference to the proportions, symmetry, polish and shape of a diamond. It is the cut of a diamond that will influence the diamond reflective character. This is the extent to which a diamond will reflect light from within itself, from one mirror-like facet to another, and then disperse it though the top of the stone, known as a diamonds brilliance and quot;. A diamond with well cut angles (symmetry) and a good finish will enhance the diamonds light and brilliance. In a well cut diamond, light enters through the table and travels to the pavilion where it is reflected from one side to the other before being reflected out of the diamond though the table. A well cut diamond will reflect all of the light back causing the stunning brilliance that makes diamonds so alluring. In a poorly cut diamond, light enters through the table and travels to the pavilion and then leaks out of the facets at the sides or bottom of the diamond. A reduced amount of light is reflected out of the diamond through the table, with reduced brilliance.Cut DescriptionsDue to the importance of cut, a range of cut grades between well cut and poorly cut diamonds has been developed. The AGSL (American Gem Society Laboratory), HRD (Antwerp Diamond High Council) and GIA (Gemological Institute of America) use different standards when grading a diamonds cut, and at present only allocate a Cut Grade to round diamonds. Despite the minor differences between the various grading systems the following different cut grade descriptions are broadly accepted by the diamond industry:

Ideal Cut

Ideal cut diamonds maximize the brilliance that is reflected out of the table of a diamond. This maximum brilliance is achieved through the exact calculation of the diamonds symmetry and proportions. When finished with the highest standards in polishing of the surface of the stone, these diamonds become the best available.

Excellent Cut

While generally also displaying maximum brilliance, excellent cut diamonds are not as exacting in terms of their symmetry and proportions.

Very Good Cut

In a very good cut most of the light that enters the diamond will be reflected back though the table, creating a high amount of brilliance. Craftsmen working on these diamonds would have made the decision to stray slightly from the proportions and symmetry of ideal cut and excellent cut diamonds, to create a larger diamond. For example a very good cut diamond may have a table size or girdle width that does not comply with ideal cut or excellent cut diamonds. However, in many instances, very good cut diamonds will possess symmetry and proportion characteristics that overlap with those of ideal cut and excellent cut diamonds. These diamonds provide a very good value purchase for buyers seeking a slightly larger diamond for the same price as ideal cut and excellent cut diamonds.

Good Cut

These diamonds will reflect much of the light that enters them back through the table. In such diamonds the craftsmen have significantly deviated from the proportions of ideal cut and excellent cut diamonds to create the largest possible diamond from the original rough crystal diamond. By way of an example these diamonds may have a crown angle or depth that is further deviated from the proportions acceptable in a very good cut. These diamonds may provide the option of a larger diamond then a very good cut diamond for the same price.

Fair and Poor cut

A fair or poor cut diamond will only reflect a small amount of the light that enters, back though the table. Most usually these diamonds have been cut where maximum carat weight was the most important criteria.

Marketing is a management process responsible for identifying, anticipating and satisfying customers requirement profitably.

This means that an organisation should be based on satisfying the needs of the consumer, or end user, and Making profit by doing it so. To put it another way, making sales is for your satisfaction, and marketing is for your customers satisfaction.

In this industry we are going to learn as in how marketing is done in business to business segment and in retail segment. In this industry traders trade within the market, diamonds are extracted from the mines, polished, given shape and traded into the market by the manufacturer at certain price. Not all people manufacture so they buy it at a price and try to sell it at a higher price. That is how in a diamond industry majority earns through B2B. Amongst them few of them are jewellery manufacturers. They manufacture jewellery and then sell it to direct customers via retail outlets. Kiran Gems Pvt ltd as mentioned is a market leader in manufacturing below 1.5 carats. They also have retail outlets in different countries mainly in USA. Hence we learn marketing as from both the ways, how marketing is done in a B2B market and in retail sector.

One of the simplest and yet most neglected means of increasing marketing effectiveness is to ensure that all marketing activities have a focused objective. In other words, any organisation should have an overall marketing plan that is built on achieving a number of clear deliverables, whether the organization works in a B2B market or retail market.An important part of effective marketing, is to work out this plan and then to write it down. Written plans are effective because they let your entire organisation understand how the company intends to go forward.

In any marketing plan, objectives must be stated and individuals put in charge of achieving these objectives.Staff can also be asked to help develop the plan, which is invaluable. They are likely to feel some degree of ownership of the plan and are more likely to support its objectives. If I talk about Kiran gems my mentor Mr. Manu Patni and Mr. Swaroop who is in charge of marketing of sales are involved in developing a plan for the firm. This develops a sense of togetherness amongst the employees.

Marketing Planning

Marketing planning is a process that gets you to focus on the customer, gives you an awareness of your competitors strategies, and provides your organisation with an understanding of market trends. It is a process of analysis, thought and action. It is essential for business survival and long-term success. It has to become integral to your companys management style. As quality and choice increase so does the need to attract consumers and other businesses with exciting information and powerful advertising. Marketing planning is about: Hitting the best customer targets Expanding markets Keeping abreast of market developments Identifying your target customer Building competitive advantage and a sustainable business Using resources to best advantage Identifying company strengths and weaknesses Winning new customers Maximising returns Minimising challenges

Following are the seven stages which should be taken into account while formulating any marketing plan.1. Identifying your strength, weakness, opportunities and threats (SWOT)The SWOT analysis is a very useful, commonly used decision making tool. SWOT stands for: Strengths, Weaknesses, Opportunities and Threats. As with all tools, a SWOT analysis becomes easier to apply the more you use it. Its major strength is that it is simple and effective to use. It will allow you to summarise your businesss strengths and weaknesses in relation to your competitors, as well as enable you to highlight external factors that will impact upon your business success. Evidence may include trade statistics, press reports, government statistics, Industry research, staff feedback, consumer comments and letters.

There are a number of ways that your analysis might be developed. Many organisations undertake a SWOT analysis for each of the markets in which they operate. For you, it may be more useful to produce SWOT grids for each of your leading competitors. This would certainly help you reveal your companys relative strengths and weakness and establish its ability to face the threats and opportunities identified in the analysis.

Your SWOT grid should provide a succinct, interesting and readable summary of the state of your business and the external factors and trends that impact it. If done correctly, your SWOT should highlight clear issues affecting the future direction of your business. If it fails to do this, then all this shows you is that the information you have put into the grid is not comprehensive enough, is irrelevant and/or is not specific enough.

Following are the areas regarding companys inner strength and weaknesses you need to consider to make sure your analysis is working efficiently: Marketing considerations: product range, pricing strategy, promotions you run, market information/intelligence (that you have on consumer needs, competitor strategies etc), resources, service/staff, distribution/distributors branding and product/store positioning, merchandising. People considerations: level of training/competence, distributors, marketing, sales and after sales service, processing, company management style. External factors are also worth considering: social/cultural, regulatory/legal/political, technological, environmental, economic conditions, level and type of competition and any other external factors that are out of your control, but which have an effect on the way your business operates.

2. Identifying where you currently sit in marketAs jewellery business persons you will be focusing on providing products and services to your customers. However, this is not enough in this challenging and competitive market. You must also build and maintain good customer relationships, and establish trust and an overall expectation from your customers that you are consistently able to understand and meet their buying needs and exceed their service expectations. Customers in this may be even other businesses.

To achieve this you must first understand where your business sits in the market. You must: Understand who your competitors are Understand who your customer is Understand how your customers perceive your business and what it stands for Understand what your customers expectations are, and consistently meet/exceed them Plan your positioning strategy Plan your competitive strategy Plan how to differentiate your business Determine your unique value proposition Plan how to attract customers Plan how to keep those customers

Understand how your customers perceive you and what your business stands for. Your business already communicates to its customers. This may have been a planned conscious effort on you and your staffs part or not. Anyway, now is the time to establish what your customers believe your business is about. Take care though, not to confuse your own perceptions of your business with theirs. Ask your customers, your staff, your business neighbours and your family what they believe your business is about and then complete this statement.

3. Understand your business

Understand your customers expectations and consistently meet or exceed them. All of your staff must be focused on this essential aspect of marketing; otherwise your business will not be the first choice for your customer. Your staff should be encouraged to own and be aware of the goals and purposes of your business so that they can maximise their talents, strengths and realise their expectations. An important aspect of meeting your customers expectations is to ensure that they are comfortable with the entire shopping experience that they receive from you.

Understand who your competitors are. Recognise that it is not a disaster if you have many competitors in your vicinity, because it means that when someone is looking for an item of jewellery they will be attracted into your area. What you need to do is understand your competitors and their positioning, in order to determine what you can offer that is unique your unique selling point.

Understand who your customer is. Market segmentation is the term used to describe the act of dividing the market into specific groups of consumers/buyers who share common needs and who might require different products. The way for you to do this is by examining your existing customer database. What have you sold to whom, why and when?

Therefore: Know your best and worst selling lines Know who your customer is in terms of where she/he lives and if possible what type of lifestyle she/he leads Know why she/he chooses to come to you, if she/he is loyal and/or price/fashion/ quality/design conscious Know about sales, cycles, when does your business trough and peak?

Recognise that once you know who your customer is, you are in a strong position to develop your business, to build a distinct and differentiated business

4. Establish your future market position

Positioning may be defined as the act of designing and developing an organisation or product so that it occupies a distinct and valued place in the minds of the target customers. The way to achieve this is by working out how to differentiate your jewellery business from others. Your position will determine how your shop looks, what product and service it sells, how they are sold, how your staff behave.

Plan your competitive strategy:

Are you going to follow a broad market or go for a narrow niche market? To achieve maximum profitability you must develop a sustainable competitive advantage. You must decide if you are going to differentiate your business by offering distinctive features, for example focusing on particular products, particular benefits, particular services or price points. You must then decide who you want these features to appeal to a narrow target or a much wider audience. The more specific your target audience, the more specialised and targeted you can make your product and services.

5. Differentiate your business from othersWhy do my customers come to buy from this shop rather than from any other?It might be the type of services you offer, the ways in which those services are delivered or performed; it may be to do with the high level of knowledge or skill demonstrated by your staff.What products or services can I offer to my customers, and to prospective customers that are meaningful, relevant and distinctive enough to make them visit my shop and not my competitors?It may be that by offering unique product lines you can differentiate yourself. Ensure that you and your staff visit trade fairs to see what is new. A great quote in the case reads: People come here for something they know they will never see again... and customers increasingly want something unique.

6. Getting new customers.

This is a three-stage process: Awareness: customers have to know that your business exists. Attitude: customers must have a favourable attitude towards you. This comes from them understanding your position in the diamond jewellery market and being able to differentiate between you and your competitor thanks to your distinctive identity and unique value proposition. Action: customers then have to purchase from you. A prospective customer will only become a paying customer through the actions of you and your staff. Staff must be competent and fully trained to maximise their opportunities to fulfil customer buying needs. It has been said that only 50% of individuals who go into a jewellery shop will buy. Because no one yet knows how to identify that 50% it makes good business sense to treat every potential customer as you would a paying customer.

7. Keeping customers

Plan how to keep those customers: Each one of your customers is an important cog in establishing your business as the market leader. The more competition there is to recruit new customers the more important it becomes to retain existing ones. Be aware that every customer who comes into your shop, comes in with a set of expectations about what products, quality and service they can expect. In order to build customer loyalty and a good reputation, your business must strive to meet customer expectations, and to exceed them wherever possible.

Every member of your staff must be made to understand that the way in which they interact with the public will have a direct impact on the success of your business. Building customer relationships is a vital aspect of marketing for increased profit. Keep in touch with your customers, keep them interested in what you are doing, and stimulate them to visit you, make them proud to be one of your customers. Ensure that there is a feel good factor for them when they take the trouble to come into your shop. It is vital that you monitor your activities on a regular basis. Survey your customers to assess how satisfied they are. Market leaders ensure that their customers are always delighted with their goods and services.

Womens roles and influence

While understanding the marketing aspect of the product it is very important to understand about womens roles and influence as they are the prime customers of this product and it is very important to understand what influences women.

Extensive research on women and their roles in the diamond-buying process has categorized women into one of four types. Each type of woman, with her distinctive profile, exerts a different influence on the diamond purchase.

Classic Recipients are women with the highest household incomes. They are most influenced by cultural norms and traditional values. These women are passive in influencing the diamond purchase, waiting instead for their partners to surprise them.

Asserters are women who actively influence their husbands, directing the diamond jewellery purchase as much as necessary. The research shows that there is a range of influence styles among Asserters, from those who simply hint about their preference to those who buy diamonds for themselves and then go home and show their partners what you just bought for me.

Fashion-focused women will buy their own diamonds, seeing them as accessories that are versatile, beautiful, wearable and desirable. These autonomous diamond- jewellery purchasers enjoy owning and wearing diamonds as a statement of their personal style and fashion sense.

Romantics are young single women or diamond women who are waiting for a diamond gift and believe a diamond should always be given by a man.

The research demonstrates that there is a wide range of influence exerted by women in the diamond purchase process, from passive to highly active. The desire for diamonds is very high among all categories of women. One conclusion is clear; women are often the initiators of the purchase.

Following can be done to influence women to get diamond for themselves:-

1. Appeal to her love of shopping: Women love to shop, love to try things on, and love to buy on sale and love to try on diamonds and jewellery. So, get her involved and let her play with new looks. Women want to feel that they are stylish, in step with todays fashion and trends.2. Find out about her style and range of needs: Women tend to have personal styles, and you need to be sensitive to them. Perhaps you have been doing this for years, but now is the time to punch up your approach for 21st century women. You need to help her see diamonds as the up-to-date fashion must-have that fits with the way she wants to wear jewellery and her own personal style.3. Sell versatility: Show her that diamonds can go almost anywhere with almost anything. If shes going to acquire one great accessory this season, a diamond is the perfect choice Remind her that diamonds work with todays styles. As you show merchandise, relate how it will look with the latest fashion trends.4. Show a wide range of diamond merchandise: Think accessorise. She wants a piece that can work for many occasions. Talk about how different looks can work with each other and with styles she already owns.

5. Talk about the joy of wearing diamonds: Real diamonds make a statement about style and status. Diamonds can make a woman feel successful, beautiful, smart, confident and very independent. Discuss the Joy of Wearing diamonds. Help her think about how wearing the diamond will make her feel, not just on a special occasion, but every day. The message is that she is confident and independent. She can buy designer accessories or clothes, but they do not have the same timeless cachet as a diamond. A diamond says success like no other accessory.

What is PR?

PR aims to create a unique, positive image of an organisation or a company, and its products and services in the minds of its target audiences, by providing relevant and impactful information to the press so that they will generate positive news stories about your business. Used as part of your integrated marketing efforts PR can be a highly effective marketing tool.

As with advertising, direct marketing and point-of-sales promotions, good coverage through PR activity can stimulate direct sales results. However, PR can market your business for a fraction of the cost of pure advertising. It can build name recognition and make an organisation or company or product stand out from the competition.

Publicity never works in the same way as advertising. Consumers know that when they see advertising, they are being sold a product or service. Rarely do they experience the sense of excitement or discovery they get from news coverage.

Publicity can be generated through various tools such as press releases, special events and placement of feature articles, media conferences, sponsorships and celebrity endorsements.

Online Marketing

In diamond industry as a whole, there are two types of marketing, online as well offline marketing. Online marketing is generally done with the help of B2B website i.e., www.kirangems.com where in more than 15,000 GIA certified diamonds have been uploaded with the actual images of the stone and GIA certificates. Kiran Gems believes in fair and fix price policy in advance payment. At Kiran gems all the valued customers are given an online access to the B2B website where in they can see the diamonds online select the stones as per their specifications. Once they finalise their stones they can also place an order online and once the order is placed they send them Performa invoice with the payment instructions. Once the customer proceeds with the payment and the payment is credited to their Mumbai account, they export the goods. Generally for the shipments the have tie ups with top logistics company in the market namely Fedex, Malca Amit, Bvc Logistics and Brinks Aarya. Kiran as a company sends around approximate 100 exports a day with these leading logistics companies. Every month Kiran gets approximate 60 % of their revenue by online marketing. Also there are times when the client who deals online comes for the physical inspection of the goods in the Mumbai office. They are always welcomed and we are happy to serve them. The advantages of online marketing are as below: It saves the valuable time of the customer Customers can placed the order anywhere in the world and the goods are shipped to them It is an hassle free process It now only saves the time of the customers but also transportation and accommodation cost There is not much man power accumulation in this work and they to be well trainedThe disadvantages are as follows: There are many clients who are very fussy in selection of the goods and dont prefer buying goods online Generally on weekend as payments are credited late into their account, hence there is a delayed in exports, hence the clients feels that even though payments are made in advance goods arent delivered on time There are many companies in the world which have recently started online marketing of certified diamonds

Offline marketing of diamonds

Now that we have known about online marketing we come to the core that is Offline marketing. Offline marketing is the core because out of 50 big manufacturing companies all of them have an offline marketing model.Offline marketing includes: Clients or customers who physically check the diamonds by visiting the respective sales office of these manufacturing companies. They either come directly or they come via a source that is a middle men known as a dalal or a co-ordinator. The role of the co-ordinator is to mutually complete the deal with assent of both the parties. He has a brokerage that both the companies pay him and that is how he mutually co-ordinates. Clients physically come to booths of the respective companies in various trade shows like Hong Kong jewellery fair, Las Vegas show, iijs in India and so on. Here they see the goods and they can also buy the goods and take it physically out at the Hong Kong show andDubai show as they are free ports.

Customer Relationship Management

Customer Service or Relationship management plays an important role in the Diamond Industry too.The reason being, here Customer is the Only King.

Once the customer buys goods from a Big Supplier or a Sight holder he will not change the supplier because the trade is all about trust.

Trust and Faith play an important role in this industry as the goods are HIGH VALUE GOODS and hence acute care is as far as Customer Relationship is concerned.

One small mistake can create havoc and hence every step is taken carefully.

Eg.

1) When the goods are exported, care is taken that the goods or the stones selected by the client are the ones which he had seen or confirmed.

2) When preparing the Invoice to Export care is taken that the invoice and the payment instructions sent are proper. If not then the amount goes up and down and it is never a small amount the figures are always big.

Every step is taken minutely and carefully so that there are no mistakes.

Also the Big Companies attract their clients by offering services like free stay at the hotel during their visit, visa assistance by sending them an invitation letter to visit the office and even travel assistance.

They offer huge discounts and other schemes when the customer purchases huge amount of goods they are often attracted by giving them Iphone or Ipads.

Trade Shows

Trade Shows for Diamonds and Jewellery are generally held all over the world.

Trade Shows in India are basically IIJS and IIJS Signature which are huge and attract customers, suppliers, buyers, traders from all over the world.

Apart from India, "HUGE JEWELERY SHOWS" are held in Las Vegas, Vicenza, Basal, Dubai and the Biggest of them is the Hong Kong Show which is thrice a year.

Hong Kong and Dubai attract a lot of buyers the reason being they are free ports and the money flow is huge.Trade shows are extremely important for any company as it is only in such shows that they get exposed directly to customers at a large scale and they also get big orders from other retailers or jewellery manufacturers or watch manufacturers like Rado, Rolex etc.