BRANDED GOLD JEWELLERY MARKET IN INDIA
Case code- BSTR-041
Published-2002
GOLD JEWELLERY MARKET IN INDIA
GOLD JEWELLERY BECOMES FASHION ACCESSORY
STRATEGIES FOR WOOING CUSTOMERS - Tanishq and Carbon
Continued from page 3
STRATEGIES FOR WOOING CUSTOMERS
OYZTERBAY
Oyzterbay, with its tag line "Jewellery for the Living", had become synonymous
with the entire gamut of occasions where modern young women would like to wear
stylish and affordable jewellery. Oyzterbay's collection comprised over 1200
designs in 18, 22 and 24 carat gold and sterling silver, with natural colored
gemstones. The price of the jewellery ranged between Rs. 500 and Rs.30000.
The initial focus of Oyzterbay was to give a lifestyle value to jewellery
instead of the traditional investment value. In the second year of its launch,
Oyzterbay emphasised on marketing and advertising strategies to give the
necessary thrust for growth. In order to transform itself from a youth brand to
a brand for all occasions, Oyzterbay launched media campaigns in August 2002
highlighting the new look. The new communication strategy focused on addressing
the 18 to 34 age group instead of the earlier 18 to 24 age group. The new
campaign focused on positioning Oyzterbay as jewellery for office wear, evening
wear or even a fitness session. (Refer Exhibit V) The broadening of focus to
include an older segment was the result of market research which showed that
the brand appealed to middle-aged working women and affluent housewives. The
investment in the new campaign was Rs 50 million.
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Where Oyzterbay scored over others was its simple and
refreshing designs and affordability, making it distinct from the usual
gold jewellery stocked in standard jewellery showrooms and contemporary
jewellery offered by traditional jewellery houses trying to cater to the
trend. Priyadarshi Mohapatra, Marketing Manager, Oyzterbay, said "We began
by selecting a completely different reach - everyday jewellery for the
working woman and jewellery for the youth. We felt that jewellery should
be brought out of the locker. So we positioned (it) to accessorize the
dress of the young, college-going crowd, which otherwise sported junk
jewellery. The second segment was the working woman for whom we sought to
build a wardrobe of jewellery by making it affordable, so that she could
pick up pieces regularly." Oyzterbay later extended the same brand values
to diamonds too, the idea being to target a niche market.
Oyzterbay refurbished its collection every few months, keeping in mind
international trends. By so doing, they were able to offer exclusive
products to clients. As part of the Oyzterbay Summer 2002 collection, it
offered pendants, earrings, finger rings, bracelets, neckwear, and chains
with natural gemstones set in white gold, as white gold was evolving as a
fashion statement across the world. |
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Although Ozyterbay was known for its jewellery in gold and sterling silver
embellished with natural gemstones, it decided to launch 'Your First Diamond', a
complete range of diamond jewellery set in white, pink, and yellow gold. The
price of the collection started from Rs. 500 with the most expensive piece not
exceeding Rs. 12,000.
GILI
Gili distributed its jewellery priced between Rs. 500 and Rs. 40,000 through
lifestyle and department stores across the country to increase accessibility
among its target segment, the 15 to 30 age group. The company's products were
also made available through a mail-order catalogue. In 1997, Gili launched a
collection of traditional Indian ornaments made of 18-carat gold. In 1999, the
Gili Gold range was introduced. This range included rings, pendants, earrings,
necklaces and bangles made of 24-carat gold. All Gili products came with a
guarantee of diamond and gold quality.
When research conducted in February 2000 showed that there was a big gap between
the Rs. 1000 and Rs. 10000 price segment and keeping in view the teenage
population, and the kind of pocket money they had, Gili brought out a collection
targeting teens. In 2000, Gili launched its 'diamond heart collection' targeted
at teenagers and priced between Rs 500 and Rs.2500. The collection was promoted
at college campuses with banners, pamphlets and a few advertisements targeted at
teens. Gili soon realized that just pushing its product was not enough; it also
had to customize its products for special occasions. Following this, it launched
a Diamond Heart Collection specially designed for Valentine's Day. This
collection consisting of tiny, heart-shaped diamond jewellery was well received
by teens (Refer Exhibit VI). Special packaging, catchy advertising and extensive
press coverage contributed to the success of the collection. Gili also made
special promotional offers during festive seasons like Christmas and Diwali.
Having captured the low price point market of Rs.2000 to Rs.10,000, in 2000, the
company focused on penetrating the premium market of customized jewellery. For
this, Gitanjali jewels opened a jewellery salon, Gianti, to provide customized
jewellery to clients in India.
TRENDSMITH
Trendsmith specialized in premium, exclusive and modern looking jewellery
distinct from TBZ's traditional designs. The brand's USP was that every piece of
jewellery was exclusive and unique. There were different collections for babies,
teenagers and weddings. Trendsmith stores had a comfortable ambience and a
clutter free display of products. According to Samrat Zaveri, Managing Director,
Trendsmith "is a store for those with little time and big pockets."
The stores also provided space for other premium jewellery and accessory brands
such as Aashi, Blue Fire, Solange, Nakshatra, Aura 22, Mimansa, Brilliant and
Moksh. The prices for these pieces of jewellery started from Rs. 10,000. The
range comprised finger rings, pendants, bangles, bracelets and neckpieces.
Trendsmith laid emphasis on affordable, fashionable jewellery. It changed its
collection every season. Trendsmith also had a design studio where customers
could design their own jewellery. The company advertised in women's fashion and
lifestyle magazines since the readers of such magazines formed 80 percent of its
clientele. To remain in the public eye, Trendsmith planned to host events
whenever it launched a new collection. The company intended to spend Rs 30 - 40
million annually, on such events.
ALL THAT GLITTERS IS NOT GOLD
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This case study is intended to be used as a basis for class discussion rather
than to illustrate either effective or ineffective handling of a management
situation. This case was compiled from published sources. |
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