“I don’t know the key to success, but the key to failure is trying to please everybody.” (Bill Cosby)
The reason is because there are no two people that have exactly same likes and dislikes. Everybody in this world is different. Hence trying to make everyone happy at the same time merely blow the pleaser’s mind off.
Taking that quote into consideration, it is not only true to an individual but also to every industry. A business cannot aim to sell their products to the whole market, because every customer has different wants and needs. Only a group of similar consumers that suites the products’ property best should be considered, so the business can use the right marketing strategy. In other words, business should segment their market in order to have clear image about their customers. Thus the business would make high profit by selling right product to right customers.
2. History of Cartier
Started in 1847 when Louis-François Cartier took over master-craftsman Adolphe Picard jewelry workshop. Owing to Cartier’s great quality of manufacturing, they were trusted and selected to be many royal family official purveyors, including: King Edward VII of England, King Alfonso XIII of Spain, King Carlos I of Portugal, Tsar Nicholas II of Russia, King Paramindr Maha Chulalongkorn of Siam, King Peter I of Serbia, Duke Philippe of Orleans, King Albert I of Belgium, Duke of Windsor (Prince of Wales, future King Edward VIII at that time), King Fouad I of Egypt and King Zog I of Albania (cartier.co.uk, 2012)
The company had always been under control of Cartier family members until 1972. It was taken over by group of investors led by Joseph Kanoui. (cartier.co.uk, 2012)
Cartier has been producing many beautiful collections. In present, there are nineteen collections available for customer to choose.
Figure 2.1 is illustrating three of Cartier’s famous collections: * Panthere De Cartier, which using the figure and color of a panther to create beauty in each item. * LOVE, which has a signature design of flat bangle connected with tiny screws and presented as symbol of love. * Trinity De Cartier, which is a composition of 3 or more bands interlock each other in one piece of jewelry.
This report will focus on Trinity De Cartier collection.
3. Current Jewelry Market
Precious metal jewelry has always been and still is remain the largest product sector in terms of value, making up three quarters of the total market. (Mintel, 2008)
However, in 2012, the watches and jewelry market is having a rough time because consumer are slowing down their consumption due to the economic crisis around the world, along with the increase in price of precious metal and costs of raw material. As a result, Mintel presented that there will be only small percentage of development in 2012 market growth. (Mintel, 2012)
Hopefully, not more than five years ahead in the future, positive changes in economy will take place. Mintel (2012) also forecasts “the watches and jewelry market will grow by 5.3% between 2012 and 2017 to reach 4.5 billion pound. This growth will be mainly driven by the UK’s improved economic prospects as GDP, PDI and consumer expenditure are all estimated to return to strong growth over the next five years.”
4. Market Segmentation
4.1 Demographic Segmentation
“75% females, mostly between the age of 45 - 54, with household income of $50-$75K, and have some college degree.” (linkedin.com, 2010)
Information from linkedin.com shows that jewelry consumer can be segmented by their gender, age, income, and education.
The capture from Cartier’s selection page in the official website indicates that Cartier is also seperating customers by...