Thy Abania, Dan -Midterm

8/17/2019 Thy Abania, Dan -Midterm

1/23

A MarketingAnalysis of

Submitted by:

ABANIA, Dan Viniste M.

2012-69903

Submitted to:

Prof. Arturo Ilano

BA 170 –THY


2/23

Table of Contents. Company Overview

A. Background

B. Objectives

C. The Owners

D. Company Performance

E. Fine vs. Costume Jewellery

I. Current Marketing Strategies

A. Target Market

B. Tag line

C. Unique Selling Proposition

D. Consumer Needs Addressed

E. Positioning Strategy

II. Company and Environmental Analysis

A. SWOT Analysis

B. Porter’s Five Forces

C. Customer Analysis

V. Problems of the Company

A. Lack of Capital

B. Weak Social Media Presence

C. Weak Brand Name

D. Intense Competition

E. Target Market

V. 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


3/23

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 paymentoptions to customers.

Objectives

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.

Diamond with Love aims to

provide its clients with a wide array of high-

quality and affordable jewellery to choose

from. With their belief that wedding rings

and jewellery in general are the physical

representations of a couple’s love for one

another, they strive to provide the bestjewellery crafted with much love and

passion. They also help make their clients’

dream ring and jewellery a reality by

offering customization services.


4/23

Company Overview

The Owners

When the couple got married, they complemented each

other’s interests and passion. Sharing the same dream, the two worked togetherto establish their own jewellery store.

Mr Ali Eclipse was exposed to the

trade of jewellery at a young age. Buying and

selling jewellery was his mother’s 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 muchdifferent. 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 Master’s

degree. She also dreamed of managing her own

business.

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 loyalcustomers that could hopefully grow into a sizable customer base. For the

owners, this is what would sustain their business in the long-run.


5/23

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.

VS.

Fine Jewellery Costume Jewellery

• Made from top-quality andvaluable metals like silver,

gold, and platinum

• Precious stone are usually

added

• Lasts through generations

• Significantly more expensive

• Made from less valuablemetals like copper and

brass, and sometimes even

plastic

• Much more affordable

• Makes up for inferior quality

with artistic and catchy

designs


6/23

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 soon-

to-be-wed couples.

Tag line Diamond with Love uses the tag line “Let her shine the brightest, withDiamond 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-be-

bride 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.


7/23


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 cancontinue catering to the needs of their customers even after their wedding.

Positioning Strategy (4 P’s)

Products and ServicesDiamond with Love’s 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, rosegold, or any combination of these. The diamond used for

the rings can either be genuine diamonds or laboratory-

made 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.


8/23


Price

Engagement ring prices range from P5, 000 to P250, 000 depending

on the 4 c’s 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

CompetitorsSome of the competitors

of Diamond with Love are Karat

World, Matus Jewellery, Imelda’s

Jewellery, and J’s Diamond. In

addition, other small entrepreneursand peddlers who offer costume

jewellery which are of inferior quality

but at significantly lower prices are

also competitors of Diamond with

Love.


9/23


Product Space Map

Low Quality High Quality

High Price

Low Price

Small-scaleentrepreneurs

and peddlers


10/23


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, Imelda’s Jewellery, and J’s

Diamond are the company’s 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 well-lighted 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.


11/23


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 soon-

to-be-wed couples usually from the middle-

classes. Through such events, they hope to

increase awareness for their brand.

Diamond with Love distributes

yers and calling cards, and they also make

se of tarpaulins. Just recently, they also

eld 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 theyhave been referred to them by their friends who have purchased their products

or availed of their services in the past.


12/23

Analysis

SWOT Analysis

Strengths Weaknesses

Opportunities Threats

• Skilled and knowledgeable

personnel

• Young owners who can relate

easily to their clients

• Good relationship with customers

• High-quality products which can

be customized according to client

specifications

• Limited capital

• Weak brand name

• No concrete marketing strategy

• Lots of untapped marketing

channels

• Potential increase in demand for

jewellery due to growing fashion

sense among Filipinos

• Amendments to restrictions ontrading in the jewellery industry

• Increasing number of competitors

in the industry

• Sellers of costume jewellery at

much lower prices

• Smuggled jewellery which leads

to good-quality jewellery beingsold at low prices

• Lots of similar products offered by

competitors in the market

• Brand image is similar to its

competitors


13/23

AnalysisPorter’s Five Forces

hreat of New EntrantsBargaining

Power of Buyers

Bargaining Power

of Suppliers

hreat of Substitutes

• Increasing number

of entrants in the

industry

• Customers have lots

of choices of where

to buy fine jewellery

• Most buyers prefer

costume jewellery duto its affordability

Lots of products

similar to the flagship

products of Diamond

with Love areavailable in the

market

• Rarely experience

problems with

suppliers

• Government

regulations can

restrict the acquisition

of raw materials

Industry Competitors

• Stiff competition in

the industry

especially among

SME’s


14/23

Analysis

Porter’s Five Forces

Threat of New

Entrants

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.

Bargaining

Power of

Buyers

Threat ofSubstitutes

Bargaining

Power of

Suppliers

Industry

Competitors

Due to the growth of the jewellery industry, there

has been an increase in the number of entrants and

competitors in the industry.

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.

Customers have lots of choices as to where they

can purchase fine jewellery. Most buyers also prefer costume

jewellery over fine jewellery due to its affordability.

Diamond with Love rarely experiences problems with

its suppliers R. Abacan General Merchandising and Gemsbyme

Trading. However, government regulations can restrict the

company’s acquisition of materials for production.

There is stiff competition in the industry especially

among SME’s which makes up 90% of the total number of firms

in the industry. Most of the SME’s cater to the same market, the

middle-class.


15/23

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-20’s to early-30’s 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.


16/23

Problems

Limited Capital

From the analysis of the company and the brand, the following

problems were identified:

Having limited capital greatly limits Diamond with Love’s 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 company’s 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 themto their friends and colleagues, Diamond with

Love still has a small customer base and the

company is often overshadowed by its more

established competitors.


17/23

Problems

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 comprisesthe 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.

ntense CompetitionMost SME’s 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

puts Diamond with Love in an intense

battle for market share against amultitude 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 well-

established companies.

Small-scale

entrepreneursand peddlers

In addition, small-scale entrepreneurs and peddlers of costume

jewellery can also threaten Diamond with Love’s position. Their products,although of inferior quality, are considerably cheaper and more attractive in terms

of price to customers.


18/23

Recommendations

Objectives of Proposed Marketing Strategy

Diamond with Love Jewellery is a young business that has much

potential to prosper in the industry. For one, their products are of top-notchquality, 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.

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.


19/23

Recommendations

Increase Brand Awareness

To increase brand awareness, Diamond with Love should continueactively 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

nquiries. They might also try hosting simple games on their page to keep theirfollowers 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 brand’s image is of high-quality jewellery at affordable

prices. But that’s 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

oyal 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 currenttag line. Although the current tag line does address soon-to-be-wed couples, it

doesn’t 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”.


20/23

Recommendations

Attract and Retain Loyal Customers

Loyal and repeat customers are very important for growingbusinesses 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 first-

time clients would most certainly further avail the services of the company. This

would present more opportunities for Diamond with Love to satisfy their clientswith 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 company’s 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.


21/23

Recommendations

Differentiate Products and Services

Due to the large number of competitors and similar products in th

market, Diamond with Love should differentiate their products and services t

make them stand-out from the rest. One way to do this is by adding mor

customization options for their jewellery products. In addition, they can highligh

some of the features of their jewellery which they believe is better compared ttheir competitors’ products such as the durability or reparability of their jewellery.

Diamond with Love can also offer additional services such as onlin

reservation or ordering for wedding rings and other jewellery pieces in order t

make purchasing more convenient.

The company should also consider adding product extensions to the

wedding jewellery product line. Such extensions may include earrings o

necklaces specially designed for marriages and with the customizations specifie

by the client.

Modify Company Logo

The owners should also consider modifying their logo. The colourgrey 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.


22/23

Recommendations

Timing of Promos

The company’s peak months are November and December since a

ot 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 whichimmediately puts Diamond with Love at a disadvantage due to its lack of capital.


23/23

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

Documents

Thy Abania, Dan -Midterm