Marketing Channels and Strategies in Jewellery Industry
Marketing Channels and Strategies in Jewellery Industry
Marketing Channels and Strategies in Jewellery Industry
JEWELLERY INDUSTRY
Channels of distribution are the mean by which products are
moved from producer to ultimate consumer. Channel intermediaries
are those organizations which facilitate the distribution of products
from producer to consumer. They serve several specialized
functions that enable manufacturers to make their goods available to
their consumers at the place according to their requirements.
According to American Marketing Association1, A
channel of distribution or marketing channel is the structure of
intra-company organization units and extra-company agents and
dealers, wholesale and retail through which a commodity, product
or service is marketed.
According Richard M. Clevelt2, A channel is the pipe line
through which a product flows on its way to the consumer. The
manufacturer puts his product into the pipe line or marketing
channel and various people move it along to the consumer at the
other end of the channel.
Thus marketing channel is the connecting link between the
manufacturer and consumer which includes a number of
intermediaries. Further, the distribution channel may have a number
American Marketing Association Quoted by Pillai, R.S.N. & Bagavathi; Modern Marketing
Principles and Practices; S. Chand & Co. Ltd.; N.Dlh.. 1998; p. 296.
2
Ibid.; p. 296.
Manufacturer
Manufacturer
Manufacturer
Consumer
Retailer
Wholesaler
Consumer
Retailer
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Consumer
Consumer
(A)
MARKETING
CHANNELS
IN
JEWELLERY
INDUSTRY
In district Meerut the following marketing channels are found
in case of marketing of Jewellery:
I - Structure
MANUFACTURERS (KARIGARS)
WHOLESALERS
COMMISSION AGENTS
RETAILERS
CONSUMERS
The above one is the complete marketing structure of
Jewellery industry. According to this structure, first of all, the
manufacturers approach to the wholesalers to sell their new
designed Jewellery. After getting the new designed Jewellery the
wholesalers make their approach to the retailers directly and / or
through the commission agents and then this Jewellery is finally
sold to the customers according to their requirements and likings. In
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COMMISSION AGENTS
RETAILERS
CONSUMERS
The above marketing channel is also noticed with different
degree of popularity in urban, suburban and rural areas. In this
structure manufacturers cum wholesalers get their product
manufactured in large quantity according to the latest trend, taste
and preferences of the customers. They take the services of the
commission agents to find the suitable and potential buyers in the
retail market. The commission agents search the retailers in the
markets and get orders from them. By doing so, these agents
establish healthy communication with retailers and provide them
the desired product at reasonable making charges. Here it is worth
mentioning that these commission agents are concerned with their
commission only and they do not participate in the profit at all. The
rest of the activities which are being performed between retailers
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RETAILERS
CONSUMERS
The above one is another marketing channel which is being
noticed during the survey. In the above structure the manufacturers
of jewellery try to sell their products in the open markets. This is
the market where they directly contact to the retailers and show
their new designs to them and get the manufacturing orders
accordingly. Actually these orders are also booked by the
consumers but in that case first consumers select designs and
Jewellery is manufactured accordingly.
Practically the above structure is less popular in urban areas.
It means this marketing channel does register its existence in urban
areas but in suburban areas it is very much popular. In other words,
the above structure is followed in suburban areas with highest
degree of success. As far as the rural area is concerned this method
of marketing is less popular.
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IV - Structure
MANUFACTURERS (KARIGARS)
CONSUMERS
The above one is the last but not the least marketing structure.
This is basically based on the direct marketing system. But this
method is practically popular and followed in rural areas by the
manufacturer of small holdings. The above marketing structure
involves only two activities right from manufacturer to consumers
and consumers to manufacturers. The manufacturer of Jewellery
keep very little quantity of jewellery with him to show to the
consumers and make the consumers aware about the latest trend in
the market but even though if consumers do not like the product
they make necessary amendment in the existing product and also
make new jewellery on their demand. But the success or
significance of the above structure is restricted, as the number of
consumers in the rural areas is limited.
This marketing structure is most popular only in rural areas
because of the favorable circumstances prevailing here. In rural
areas the manufacturers generally have very less amount of capital
with them to invest that is why they prefer to manufacture the
product according to the want and taste of the consumers and not to
make any stock of them.
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I - Structure
MANUFACTURERS
COMMISSION AGENTS
WHOLESALERS
RETAILERS
CONSUMERS
In the above structure the manufacturers of Jewellery send
their agents to the state in which they want to sell their product and
get orders with the help of them. As we know that Jewellery is very
precious and it is very difficult to carry it in a large quantity, so for
this purpose orders are taken by showing the design-book. This kind
of structure is also followed in case, where a specific product is
manufactured and the demand is product-oriented only as we see in
case of Chain and Paizeb. These products are also known by
their names according to the design. These items are sold all over
India by their popular names. Another reason of following this
structure is to ensure the proper consumption of the products, as the
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II - Structure
MANUFACTURER
WEBSITES
RETAIL OUTLETS
CONSUMERS
The above structure is also followed by the manufacturers of
branded jewellery. The main reason of following this structure is to
save the charges paid to different marketing intermediaries viz.
wholesalers, commission agents and retailers. The branded
companies establish their research labs and manufacturing
workshops and get the jewellery manufactured according to latest
fashion and consumers preferences. The branded companies also
display their designs on their websites and try to attract rather
convince to the consumers of branded jewellery. Moreover, they
open their retail outlets at central places of different cities in the
country.
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120
MANUFACTURERS
DOMESTIC MIDDLEMEN
(Export agencies etc.)
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II - Structure
MANUFACTURERS
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creative energy and they can have a good time developing this
aspect of their Jewellery business.
They believe considering their market and their customers
and brainstorm ways to get their attention. They try different
strategies to attract more and more customers.
Some of the traditional jewellers have made some thing new
in practice to get aware about their customers. The number of such
jewellers is very less but still it is an effective method of keeping
updated. Along the way, they compile an ongoing collection of
information of their existing and probable customers. It proves
helpful in enriching their jewelry business.
Some of the traditional Jewellers are providing even finance
facilities just to promote their sale. What they are doing they just
sale their product and ask them to make payment in installments.
This kind of practice is not very common and it is based on an
utmost good faith. Only few Jewellers are providing such type of
facilities to their reliable customer only. In villages a good number
of Jewellers make their sale effective only by this way. They
change old Jewellery for new one and difference is charged by the
customer in various installments as per their convenience. This type
of marketing practices helps in gathering those customers who are
willing to purchase the Jewellery in the present but want to pay in
installments. Such kind of strategy helps the jewellers to make their
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product marketed by this way and thus they ensure frequent visit of
their customers.
Some other strategies are being given below which are
adopted by branded and non-branded jewellers in the Jewellery
market of Meerut District.
EXCHANGE OFFER
ON
FESTIVALS
AND
OTHER
OCCASIONS
During research it was also observed that the jewellers in
Meerut district sponsor various gift items at the time of festivals and
other occasions. Besides above, they provide sponsorship to various
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PRICE DISCOUNT
REFRESHMENTS
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Special
Offers
(Free
Gifts),
Price
Discount,
and this category will fully bloom and make a huge jump in terms
of its acceptance and growth.
There are certain trends which will make the coming future
sovereign of branded Jewellery. People can use these trends to their
advantage to grow their individual brands in the future.
It is believed for many years that Jewellery was purchased as
an investment option. The entire thinking was related to
appreciation or using it as a security measure during bad times.
However, it is expected that in coming future branded Jewellery
will be purchased and used less for investment and more for
consumption. It will be used as a consumer product to delight the
consumer, fulfill the desires, enhance beauty and be a part of attire.
In the late 1990s, players in the branded gold Jewellery
market formulated strategies for wooing customers. According to
Jacob Kurian (Kurian), Chief Operating Officer of a leading brand
Tanishq, the challenges were many.
As the Jewellery market was highly fragmented, lacked
branding, and allowed many unethical practices to flourish, Tanishq
worked hard on a two-pronged brand-building strategy: cultivate
trust by educating customers about the unethical practices in the
business and change the perception of Jewellery as a high-priced
purchase.
After all Kurian Said, "We are changing the attitudes of
customers from blind trust to informed trust." To increase its market
share, Tanishq formulated a strategy for luring people away from
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was based on the symbols of the Zodiac. This collection was a set
of 12 pendants designed in a blend of 18 carat white and yellow
gold.
While 18 carat gold was commonly used in Carbon products,
some of the designs also used white gold, titanium and steel.
Diamond was the preferred precious stone, but other colored stones
were also used. Comprising items of everyday use, (rings, chains,
bracelets, ear studs, tie-pins and cuff links) Carbon items were an
impulse purchases. The brand had no off take cycles in the year,
like the marriage season, unlike traditional Jewellery.
The creation, manufacture and marketing of Carbon were
different from the making and selling of traditional Jewellery. Said
Rao, "We are attempting here to eliminate the low productivity,
quality inconsistencies and high precious metal loss associated with
traditional Jewellery making.
Thus it can be concluded that the coming time will be the era
of branded jewellery because it will grasp a large market of
traditional jewellery in India. So it becomes necessary for the
traditional jewellers to make their marketing strategy in such a
manner so that they may be successful to retain the present cliental
and be stand in the market showing their sound existence.
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Commitment to quality
II.
III.
IV.
V.
Corresponds to 23 Carat
Corresponds to 22 Carat
Corresponds to 21 Carat
Corresponds to 18 Carat
Corresponds to 14 Carat
Corresponds to 09 Carat
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