Marketing Plan for Glisten & Shine
Glisten & Shine is jewelry and accessories-based company and shall be providing a variety of jewelry items such as necklaces, earrings, rings made from special customized gems, and later on would be diversifying its product line into bracelets, cufflinks, tie-pins, jewelry hair-pins and hair accessories, belts etc.
G&S’s jewelry will be special as the customer will be able to re-use it over and over again and dye and re-dye it to suit his requirements, without spoiling the natural look. For making our product eye catching, we will make use of semi-precious, transparent and/or opaque crystal gemstone that will be coated with a special paste providing a natural precious look to the gemstones.
Glisten & Shine provides a unique product concept in a relatively maturing jewelry industry. This will give us an edge because customers are in that stage where they want something trendy as well as innovative.
G&S will focus on a niche market segment but will aim to grow in it and expand gradually in to other markets as awareness is increased. G&S will look to initially provide basic women jewelry i.e. rigs, earrings and necklaces. After we see the success of our products, we shall look into bracelets, anklets, tie pins and cuff links and rings for men.
At initial stages, we will tend to be more conservative while estimating revenues for the first year, as we will be facing heavy operational and promotional expenditures. The company has aimed to earn about 15% rate of return on its investment. The profit margins would be around 45%, which will then contribute towards the fixed costs of the business. However as the brand becomes more acceptable and known in the market, then the margins are expected to increase in the future.
Marketing Plan for Glisten & Shine
Introduction
People buy jewelry because it is their want!!And not a need! They want one pair of ear rings, and then they want more. They want jewelry because it makes them look attractive and beautiful. Looking gorgeous and trendy is the main purpose of the wearer. At Glisten & Shine, we will provide the lover of jewelry to make a strong fashionable statement every time you go out for a social gathering and the compliments will never fade because you will not be wearing the same jewelry repeatedly. This will enhance your self-esteem and make you feel truly glamorous. These days, customers have become increasingly price sensitive and they do not mind switching to competitors for a better product or a deal (Findlay, 2010). We at G&S aim to fulfill their expectations by constantly living and breathing for our customers — that is thinking from their point-of-view at every step. We hope you find the concept as appealing as we do and allow us to give the fashionable jewelry lovers what they have been waiting this long for.
Market Analysis
Glisten and Shine will be operating mainly in the jewelry industry which is a specialized segment of retailing. Our main competencies will lie in providing fine quality items such as necklaces, earrings, rings unique gems, along with distinct and personalized customer service, and strong customer relationships.
Initially, Glisten and Shine would be targeting people aged 18-40,who have strong fashion sense and like to be up-to-date with the latest fashion trends. Focusing on this niche will help us focus on that minority of people who are more experimental and dynamic in their jewelry choice. We shall be acquiring the gems in crystalline form and then the special coating that can be dyed would be applied (Kotler, Armstrong, 2009). The special colors and decolorizing solutions shall be produced at our processing point and our first main customer outlet shall be situated at a shopping mall.
Organization and Products/Services Overview
Product Concept
It has always been understood that actions speak louder than words. It is not about what you say you are; but it is about what you project to others and what they feel about you. Everyone wants to be viewed as radiant and to be admired by society. Fashion is one very important way of achieving this. Fashion makes a statement about a person. It depicts someone’s creativity, self-confidence, social status, character and even mindset. Fashion makes a person get noticed and provides a fulfilling sense of self-esteem (Findlay, 2010).
Something that is different from the usual metal and precious gemstones. Something that tests the creativity of the individuals and makes them put the additional effort of really looking good (Findlay, 2010). Usually what happens with expensive jewelry is that for example, women buy it once and for which they have to stitch plenty of matching clothes and after wearing it to two occasions, they compliments start fading away, meaning that the woman’s fashion statement becomes weak. This is not what a fashion lover wants!
We, Glisten & Shine want to provide the opportunity for such women not to stitch matching suits for their jewelry, but to decide what to wear first and then to match their jewelry to their attires! We will be looking to provide jewelry that can be re-used over and over again and can be dyed and re-dyed to suit the customer’s requirements. This will be done by the customer him/herself at home.
Our product will make use of semi-precious, transparent and/or opaque crystal gemstone that will be coated with a special paste that provides a natural precious look to the gemstones. These gemstones can be colored and unlimitedly re-colored to any color yet not spoiling the natural look of the stone. We shall provide special dye kits that have a variety of color mixtures as well as the de-colorizing solution. The entire dyeing process takes 2 hours where the jewelry is dipped in the colored solution for about 90 minutes allowing 30 minutes drying time. The decolorizing process takes ten minutes.
Customers will be shown a variety of gemstones in regards to size and shapes from which their jewelry shall be designed by our specialized jewelers. We shall design jewelry consisting either of gemstones only or will bind it with gold or silver plated metal. This metal shall be of excellent quality and will not get spoilt during the dyeing process. This will allow the customers to create their own jewelry based on their attire and can mix and match different colors to bring out something creative in their fashion look (Findlay, 2010).
Semi-precious gemstones are these days becoming a strong preference in looking stylish as gold jewelry becomes a cliche. Gemstones are funkier and also quite distinguishable which separates them from normal jewelry. So in order to project this sort of funky, modern and fashionable jewelry image, we wanted to give such a name to our range that would depict a need and an identity that would give the audience an idea of what purpose we are trying to serve (Findlay, 2010). Hence, we came up with Glisten & Shine; this name makes a fashion statement on its own and will attract customers- who want this image, to us. Glisten ‘N’ Shine focuses more on the need of the fashionable customer. As he/she wants to get noticed in the crowd, he/she must look glitzy and glamorous, and this is what our jewelry range concentrates on making them look.
Our products will be recyclable so once bought, our products will serve our customers for much longer and in an easy, cost effective manner. Plus they will be associated with superior quality and have their own distinctiveness.
Environmental Scanning
SWOT Analysis
Strengths
We built Glisten & Shine around a unique product concept in a relatively maturing jewelry industry. This will give us an edge because customers are in that stage where they want something new and out of the crowd, they are looking to break away from the norms. G&S possesses the strength to do so because this is what their vision is geared towards, this is what their inception was for.
G&S has a strong sense of commitment to its employees and its customers. We will look not only to cater to such customers but also look to employ people who have a strong fashion sense and can think on the same wavelength as the customer. We want our employees to be true fashion representatives and to be stakeholders in our company.
At the planning level we tend to be a more conservative and safe level while estimating revenues for the first year, this will allow us perform well at the given constraints and above expectation outcomes will come as a big boost to our employees and management (Swank, 1997).
G&S plans to use marketing as its hub, from simple pamphlets to the web, we shall base our whole operations on strong marketing commitment so as to evoke popularity, firstly among our target market and later, beyond it.
Our outlet and our stalls will be located at a convenient place for our target market because it is generally perceived that malls are much safer and relaxing than city shops. One of our biggest strength shall be a detailed record that G&S will keep about its customers and their purchase history; this will help us to serve them better and to understand their requirements better (Kotler, Armstrong, 2008).
The name itself “Glisten & Shine” adds a feel of fashion that is being provided by us. This defines the attributes of our offerings and one can make several inferences after reading the name. We felt that this would fit in well with our target market’s persona that when they are looking for something glitzy and glamorous, they know where exactly to come. Our employees will make sure that they get exactly what they need in order to make them look just that!
G&S’s unique jewelry offers the customers an opportunity to experiment on their own and to test their creativity, which includes blending in different colors, and not worrying about any resulting damages. It’s the additional effort that one puts into to looking good that really catches the attention of others.
Since G&S will be the innovator in the market for just type of jewelry, it will possess a first mover advantage over other copycats that could be expected in the future. This will allow G&S to be placed first in the minds of the customers.
The whole concept behind G&S is a fashionable yet cost effective mode of fashion jewelry so this idea could be very catchy to customers who want to give their spouses something interesting that can be used on a regular basis and not just stored away. Customers should like the idea of buying something once and yet getting the feeling of a new item every time it is worn (Meldahl, 2007).
Weaknesses
We feel that for the first year of operations, we might not be able to achieve high profit margins as a new product and company requires high promotional expenditure therefore increasing the costs at a rapid rate (Petkus, 2000).
Since we are a new company, it will take some time to properly establish ourselves in the market and to gain recognition. This time span should be kept to a minimum or else our profits could suffer. This time span is ambiguous.
For the first year, we shall be following a centralized decision making approach to control costs, this might create some motivational problems with the staff especially in situations where empowerment will be sought.
G&S’s customers might not like the idea of waiting for 2 hours for their jewelry to get dyed as some of them might want to change their dressing last minute.
G&S faces some question marks regarding the adequate pricing to be charged on each item. It may lose out either if items are under or over-priced.
Opportunities
Given sometime, as we gain more expertise in our operations, G&S will look to provide quick dyed jewelry that should take less than fifteen minutes to dye and still obtain that natural sparkling look. But in the meantime we are targeting those people who want to take time out for their jewelry just like how they take time for manicures etc. (Petkus, 2000).
G&S can up stretch its range to go into the high end market by combining our gems with 24 karat gold, this will have the same concept but now cater to the more subtle and conscious gold wearers.
Product line opportunities for G&S lie in belts, cufflinks, key chains, tie pins, specs frames, shoe studs, after the first year of success. We would also like to launch a jewelry magazine with the use of models and interested designer to promote this jewelry culture and fashion sense. Our interactive website shall provide us with opportunities to provide feedback from our valued customer and this will help us become a stronger company for our clients.
Threats
Like any new company launching a new range, G&S shall face uncertainty of its future in the market. The first year of operations shall be crucial and survival will be seen as the main strategy (Petkus, 2000).
The threats shall not be from direct competitors in the first year or so but if the concept is appealing to others, then we do expect direct competitors targeting the market this could imply sinking profits and a sign to bring more ideas.
There shall always be string competition from the traditional competitors i.e. gold and precious jewelry, as people will find it difficult at first to break away from this tradition due its face value and sign of wealth. To the general, unaware market, G&S’s products might still appear much inferior to gold and other precious jewelry. They might view G&S as
Second option jewelry. G&S might have to look for a sustainable point of differentiation that can last for a minimum of 5 years at least. This point of difference should serve as the base for further expansion. But due to the intense business conditions, this might be a difficult task (Petkus, 2000).
One of the biggest challenges for G&S will be to create a solid brand identity and loyal customers as because we are serving a market that enjoys change and dynamism. So our challenge will be to evolve ourselves as our customers do too. This will be done through thorough market research.
Customers: Customer Demographics and Needs
Market Segments
G&S will primarily be targeting the following customers: (Brassington, Pettitt, 2008).
Demographically:
Age:
Between 18 to 40 years
Residence:
Not particularly set, but we assume that they will come from posh areas
Gender:
Both male and female.
Family lifecycles:
We will target single to married with children less than 18 years of age.
Social class:
Upper Middles and Lower uppers mainly.
Psychographically:
Lifestyle:
Outdoor-oriented and enjoy social activities (e.g. parties, dinners, concerts).
Personality:
Experimenters, like to be noticed, opinion leaders, people who are willing to make an effort to look good.
Behaviorally:
Occasions:
G&S’s products can be used to regular occasions, such as parties, lunches, dinners, or any other social gatherings.
Readiness stage: G&S will target all those from the unaware stage to the ones who intend to buy our products, as this is a new concept we will need to arouse interest in anyone who fits in as a potential customer.
Attitude:
G&S will seek to appeal to the enthusiastic and positive clients.
Marketing Goals and Strategies
Positioning
G&S’s core benefit will be “Attention”! G&S would like to enhance its image in the market as being a true representative of a fashionable person. G&S depicts a lifestyle rather than a product identity and that is what it wants its customers to associate with (Brassington, Pettitt, 2008).
G&S would aim to bring into the minds of the customers the following attributes:
Hip
Outgoing
Fashionable
Attention seeking
Modern
The benefits that G&S will want to focus on:
Functional: re-usable, long lasting and practical
Emotional: break away from cliche jewelry, makes one stand out, enhances individual creativity.
Benefits that will be most valued by customers are:
Style
Variety
Glamour
Unique
Cost-effective
G&S’s value proposition will be:
To provide the lovers of jewelry with unique and glamorous dye able jewelry to cater to their desires to make a strong fashion statement. G&S will be focusing on the following positioning strategies:
Benefit positioning: G&S will provide cost-effective jewelry and will be the first of its kind
User Positioning: G&S products are catered towards fashionable non-traditional jewelry wearers.
Price- quality positioning: G&S will provide top quality jewelry at reasonable prices.
Since G&S is the first company to provide the customers with such unique type of jewelry we shall be able to capitalize on the first mover advantage and this will be one of the main factors of our success. We shall realize the implications within a few years to come.
G&S’s products should have low price sensitivity because:
The products are distinctive
The product is a smaller part of the customer’s income
It is synonymous with good quality.
Plus it is not easily comparable with other jewelry.
There are no direct substitutes available for dye able gems.
Demand is likely to be inelastic, that is less responsive to changes in price and in most cases, and customers will be willing to pay a premium if they are satisfied with the product.
Since G&S is offering a unique superior quality product to a niche market, the pricing should complement the products and image of G&S. Neither should they be over-priced so as to discourage trial, nor under-priced to make it seem an inferior product (Brassington, Pettitt, 2008).
G&S shall adopt the “perceived value pricing” method of pricing. This is where prices are set on what the customers perceive the price of the items to be. We can charge a higher price if we have a strong value proposition and can provide exactly what we promise to. G&S will need to experiment with its prices to find an ideal one for each product. G&S might make use of the following pricing strategies:
Discriminatory Location pricing: G&S might offer different prices in different regions, according to the class level and income groups.
Promotional pricing: G&S shall adopt the warranty and service contract form of pricing where within 15 days of purchase; the customer can return the item if damaged and later a slight fee to maybe try out some new design. G&S will provide free refills of dyeing solutions. However, G&S will have to price in such a way that it covers its variable costs in the short run and fixed costs in the long run.
Product Management
G&S will look to initially provide basic women jewelry i.e. rigs, earrings and necklaces. This is because it is the women who are regarded as fashion initiators and they have spent more time assessing the jewelry market than makes have. Secondly, we see that these are the basic jewelry items that are expected to be kept in a jewelry store (Lehmann, Winer, 2002).
After we see the success of our products, we shall look into bracelets, anklets, tie pins and cuff links and rings for men. This will be the contemporary range that G&S will provide. However we will be looking to gradually provide a slightly different range that branch into accessories. This will include key chains, gem studded eye wear, belts, watch dials and sitting room decorations. This will allow G&S’s range to gather more width in its portfolio (Lehmann, Winer, 2002).
G&S’s product lines will fall into the “specialized” product groups which are characterized by low sales volume and high promotion. This trend will continue until G&S is well established in the market, then the margins will be more favorable. G&S will spend 20% of its earnings on researching for new products and returns measured by profits after their launch
G&S has no plan to down stretch its market because we feel this will be a negative association for our loyal customers. Instead we could target the upper market by may be dealing in pure 24 karat gold and silver instead of plated metals while keeping the product concept similar. G&S will spend 30% of its time conducting market research on new products that could be launched.
G&S is in the introductory stage of its product lifecycle, which is characterized by low sales, high costs, low or negligible profits and few direct competitors. The kinds of customers that we are targeting are innovators by nature and lifestyle (Lehmann, Winer, 2002). We expect to enter into the growth phase in another 18 months. Decline could come in 5 years but we have planned new product extension strategies in advance.
Marketing Objectives
G&S will focus on a niche market segment but will aim to grow in it and expand gradually in to other markets as awareness is increased. Initially we would be focusing on “Word-of-Mouth” advertising. New customers will be granted a 10% discount if referred to by an old/currently existing customer.
Also on the advertising front we plan to place around 6 adverts in a period of 3 months. Complete details on our brand would be provided through our regularly updated website: www.G&S.com.pk
G&S will work in a completely customer-centered way. We will rely heavily on customer feedback and conduct regular market research to provide the customers something new.
G&S will be devoting 70% of its time to discover new customers and 20% of its effort on new product development (Kotler, Armstrong, 2009).
Financial Objectives
Our main target is to sell 350 necklaces in the first year, which should go up to 600 in two years’ time. Secondly, we have set a target of 1000 rings, 1000 earrings, which we hope would also double up in the next two years. The sales of necklaces would be about 32% of total revenues. The earrings would contribute about 34% of revenue. And rings, which are a comparatively high selling item, would contribute about 34% to total revenues.
The company has aimed to earn about 15% rate of return on its investment. So our business will have to earn a premium of about 5% over the risk free rate.
The profit margins would be around 45%, which will then contribute towards the fixed costs of the business. However as the brand becomes more acceptable and known in the market, then the margins are expected to increase in the future (Amine, Magnusson, 2007).
The first year will be the year of mass sampling, where we will try to get the customers to try our product. We are confident of its quality and need satisfaction levels, and we feel that the results of our hard work will be seen in the second year.
The second year will be the year of maximum growth. We will try to increase revenue by the maximum, and maintain this growth pattern. We plan to increase the sales of necklaces by 100% in the first year, because more people will be made aware of our value added and need-satisfying product. However in case of the rings and earrings we plan to increase their sales by 50% in year 2, and by year 3 they we will be double of the existing volumes (Kay, 2010).
For year 3-5 we have set a targeted growth rate of around 15% on the average, as we will be capturing the broader chunk of the market. After year 5 our product will mature and growth rate will be a modest 4-5%.
Marketing mix
Positioning
Glisten & Shine’s gems and jewels would symbolize a unique combination of slick fashion, convenience and high utility-all in one! (Kotler, Armstrong, 2009).
Product Management
Initially basic gems will be introduced in the first year; with a suggestion and feedback form, for areas in which the customers would like us to improve. During the first year, these suggestions would be analyzed, researched and their profitability assessed.
Pricing
The average product price will be based on the raw material used in its making and it will also be in accordance to the current market price of real fashion jewelry. Later on prices may be reduced, in view of introduction of higher and more luxury-based products.
Distribution
Through the use of Glisten & Shine’s website, fashion designers’ retail outlets, and through POP (Point of Purchase) stalls at artificial/real jewelry shops, we plan to distribute Glisten & Shine’s products everywhere in order for it to be an available brand for its customers.
Marketing Research
Measurement of customer response during the launch and after, along with the analysis of areas of weaknesses and pitfalls, would help improve the level of customer satisfaction and opportunities for future product development. {Eg: hair-clips, eyewear, watch-dials embedded with dye able gems} (Kotler, Armstrong, 2009).
Implementation (Monitor and Control)
G&S needs to make sure that the budget is strictly adhered to. For that we have made a month-by-month comparison plan. We have to make sure that we do not exceed our monthly-expected costs. Also we will be monitoring our sales on a quarterly basis. We have to make a comparison of actual volumes of expected sales for every quarter, and the manager must make his maximum effort to achieve the quarterly targets. The manager will be given some powers to react to market situation if the sales/costs do not meet expectations (Kay, 2010). These include:
Increasing the advertising expenditure by at least 20% if there is a need, because advertising will be reduced after second year. So we have the flexibility to increase advertising in the 1st year.
Also the manager will be given a special authority to give discounts to customers who cannot seem to make up their mind about buying the product. The discount can be from 5% to around 15% depending on the circumstances.
The manager can also give a money back guarantee to those customers who are unsure about the products functionality.
The manager can also give some customers who may be opinion leaders a sample of our ring / earring to try out. He may also give a product on a trial basis, if he feels that the customer can bring in significant business in future (Kay, 2010).
For the second year, the aim is just to get the maximum amount of growth. The Manager must learn from his first year experience of sales and profits, and must try to make the second year more comfortable for G&S’s growth.
References
Amine, Lyn S.; Magnusson, Peter (2007). Cost-Benefit Models of Stakeholders in the Global Counterfeiting Industry and Marketing Response Strategies. . Multinational Business Review (St. Louis University), Vol. 15 Issue 2, p63-85. 23p.
Brassington, Frances & Pettitt, Stephen (2008). Principles of marketing, 4th edition, England, Pearson Education.
Findlay, Stephanie (2010). Jewelry for the masses, Vol. 123 Issue 25/26, p60-60. 3/5p.
Kay, Mark J (2010). Marketing and the Effects of Recessions. Phi Kappa Phi Forum, Vol. 90 Issue 2, p18-19. 2p.
Kotler, Philip & Armstrong, Gary (2008). Marketing: An Introduction. Publisher: Prentice Hall; 9 edition, ISBN-10: 0136021131, pg 1121-656
Kotler, Philip & Armstrong, Gary (2009). Principles of Marketing: Global Edition by. Pearson Education; 13 edition ISBN-13: 978-0137006694
Lehmann, D.R., & Winer, R.S. (2002). Product management (3rd ed.). New York: McGraw-Hill.
Meldahl, Herb. (2007). The principles of marketing. Wood Digest, Vol. 38 Issue 1, p18-20. 3p.
Petkus, E., Jr. (2000). A theoretical and practical framework for service-learning in marketing: Kolb’s experiential learning cycle. Journal of Marketing Education, 22, 64 — 70.
Swank, David (1997). Innovation and marketing, principles to plan. Management Quarterly, Vol. 38 Issue 1, p17. 7p.
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