DEWI SITHA JEWELRY COLLECTION
A MARKETING PLAN PRESENTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR MKT 500 – MARKETING MANAGEMENT
(ECHO PUTRA I WAYAN HANDIKA)
DR. JOEL NWAGBRARAOCHA
WAHINGTON D.C. CAMPUS
APRIL 19, 2011
This research plan was made to support introducing the product and service of Dewi Sitha for its business in Silver Jewelry. Dewi Sitha is based in Indonesia and has been in business since 1970. This company is still growing especially in these days where the price of gold is very high. The silver jewelry business is low on cost and high in margin. The retail markup on silver jewelry products is about three to four times the production cost, meaning if cost to produce it is $8 then retailers will sell it for $30. This research paper has three goals:
• To identify the Market segment in jewelry business • To discuss the target market for the company.
• To conduct SWOT analysis for the better future of the company. • To know the market position of the company’s product and services. Market Segment
Market segmentation can be defined as the process through which people (both retailers and customers) with similar needs, wants and characteristics are grouped together, so that a jewelry business can use greater precision in serving and communicating with these groups (marketing). When attempting to segment the market for silver jewelry in the jewelry industry, we used demographic (income, age, gender, household composition) and physiological segmentation that we learned in class. According to the well respected demographer, David Foot, demographics accounts for “two-thirds of everything”, (markets, social problems, demand for services etc). The subject therefore plays a key-role in decision-making regarding demand for jewelry products.
For most jewelers, the target market consists of consumers in the $50,000 to $100,000 annual income range. Consumers with annual household incomes of $150,000 and above represent, by far, the highest per-household expenditures on jewelry. Age
A key market for jewelry exists among younger consumers. Nearly a quarter of the jewelry market consists of consumers under 35. Two-thirds of all jewelry expenditures are made by consumers under 55. Unfortunately, far too many jewelers have not changed the look and feel of their stores in decades and they continue to cater to older consumers. Their stores and their merchandise hold no appeal for younger shoppers. Household’s size.
In two-person households, there is a high likelihood that both spouses work outside the home, and they have no child-related expenses. While two-person households do not have the highest per-household income levels (four-person households have the highest incomes), the average income level for a two-person household is above the national average.
Wants and needs
People’s wants and needs play a key role in decision making and shopping habits. These psychological characteristics, when used in conjunction with demographics, provide a much stronger marketing tool for jewelry businesses. There are customers that seek premium product, price sensitive, brand loyalty and etc. All this segments are important because every business needs to match the customer need. The entire above segment provides businesses with a better solution. Customers have different income. They are, therefore, different in how sensitive they are to price. By using these segmenting markets, businesses can raise average prices and enhance profits.
Age in particular is an important example for targeting market. The business will target on several market based on Age. YOUTH MARKET (18-30):
Youth have lower than average incomes, high energy approach to travel so...