A Report on the study of
“JOYALUKKAS INDIA LTD”
Submitted to the MAHATMA GANDHI UNIVERSITY In partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Under the guidance of
Mr. Santhosh. S
RONNY VARGHESE Regn.No. 23319
School of Technology and Management Prathap Nagar, Muttom, Aluva, Kochi - 683106
School of Technology and Management Prathap Nagar, Muttom, Aluva, Kochi - 683106
This is to certify that the project report entitled “A REPORT ON
THE STUDY OF JOYALUKKAS INDIA LTD” is a Bonafide
record submitted by RONNY VARGHESE Regn.No. 23319 . in partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION during the academic year 20102012.
Dr. Radha P Thevanoor
School of Technology and Management Prathap Nagar, Muttom, Aluva, Kochi - 683106
This is to certify that the project report entitled “A REPORT ON
THE STUDY OF JOYALUKKAS INDIA LTD” has been
successfully completed by RONNY VARGHESE Regn No.23319 in partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION, under my guidance, during the academic year 2010-2012.
Santhos. s Internal Faculty guide
COMPANY CERTIF ICATE
I, Ronny Varghese, MBA student of SCMS School Of Technology And Management, Cochin do hereby declare that this report titled “ A
REPORT ON THE
is submitted to the
STUDY OF JOYALUKKAS INDIA LTD”
Mahatma Gandhi University for the partial fulfillment of the requirements for the award of the Masters Degree in Business Administration is my own bonafide work.
I also declare that this report / part, thereof has not been submitted by me to any other University / Institute in full or partial for the award of any Degree or Diploma.
Date: Place: Cochin
Fulfillment of a good project will include the help of some prominent persons. For their helping hands I must express their gratitude. I would like to express my gratitude to our Director Dr. Radha Thevanoor for her never ending support. I express my sincere thanks to my faculty guide Mr. Santhosh S who assisted me to take initiative and assume responsibility in bringing out the final piece of work.
I heartily thank Joseph Christo HR Manage r and also Mr.Jibin Toms John, Sr. Marketing Executive India Ltd of Joyalukkas who has taken time out of his busy schedule and cooperated with me to get the required information. I must specially record my thanks to divine grace and my parents, all my friends without whose support and encouragement this project would never have been a success
LIST OF TABLES
Sl no: 1
CAPTION Joyalukkas jewellery, and textiles, apparels and accessories business operations as of and for Fiscal 2008, 2009, 2010 and as of and for the six month period ended September 30, 2010:
Ref no 1
Page No: 32
LIST OF FIGURES
Sl No: CAPTION Ref No Page No: 10
Gems And Jewellery Value Addition Ladder Organised retail in different sectors.
Geographical Segmentation of Gold in India Average Annual 10 Year Growth Rate In India Geographical Segmentation of Diamonds in India Managerial Organizational Structure Procurement Of Raw Materials For The Manufacturing Of Gold Jewellery Manufacturing Process For Gold Jewellery Operations Process Flow
Map Of India Highlighting Joyalukkas 4.3 Existing Retail Stores Process Interaction 4.4
The MBA course offered by the M.G. University, Kerala, has its own unique syllabus which requires its MBA students to undertake an internship with any of the leading business houses during the second semester for the purpose of acquiring practical knowledge of the working and functioning of a company. This is helpful for us to study how the different departments in an organization work and wins as a single unit. Joyalukkas is a popular jewellery retail chain that has rapidly expanded its presence across India in the past few years. The success and growth of Joyalukkas has been driven by its unstinting commitment to quality, a fact that has been widely recognized by its growing customer base. Joyalukkas is renowned within jewellery lovers for its choice, quality, service and value offering. It is one of the consistently growing jewellery retail chains in India. Joyalukkas is currently operating 23 jewellery showrooms across India. Plans to open an additional 14 new showrooms are already in place, and Joyalukkas to complete the expansion plans by September 2013. Joyalukkas showrooms offer a wide variety of jewellery in Gold, Diamonds, Pearl, Platinum & Precious Stones. Some of the Joyalukkas showrooms also feature silver jewellery and silver items.
TABLE OF CONTENTS
LIST OF TABLES
LIST OF FIGURES
1.1 Introduction To The Study
1.2 Scope Of The Study
1.3 Objectives Of Study
1.5 Limitations Of The Study
BUSINESS ENVIRONMENT ANALYSIS
2.1 Business Environment Analysis
2.2 Industry Profile
2.2.1 Global Scenario
2.2.2 Indian Scenario
2.2.3 State Scenario
2.3 Indusrial Analysis
2.3.1 Industry Key Players
2.3.2 Competitor Analysis
3.1 Background And History
3.2 Vision, Mision, Objectives And Goals
3.3 Company Profile
3.4 Products And Materials
3.5 Certifications Awards And Recognitions
3.6 Business Performance
3.7 Strategic Plans And Future Programmes
4.1 Managerial Organizational Structure
5.1 Materials And Procurement
5.3 Human Resource Department
5.4 Marketing Departmaent
5.5 Finance Department
5.6 Business Development Department
5.7 Loyalty Department
5.9 Total Quality Management
6.1 SWOT Analysis
6.2 Corporate Social Responsibility
FINDINGS AND CONCLUSION
7.2 Conclusion BIBLIOGRAPHY
1.1 Introduction To The Study.
This study is conducted to get a proper understanding on Organisational functioning, structure and coordination of all levels. Organization is the process of identifying and grouping the work to be performed and delegating the responsibility and authority. It is a social entity directed towards a particular goal designed as deliberately structured and coordinated activity systems linked to the external environment. Joyalukkas which is renowned as Worlds Favorite Jeweller was selected for the study because it is a well established, organized and well managed organization with 23 outlets in India and having more than 2300 employees. This project report is based on the study conducted on Joyalukkas India Ltd at its corporate office and Joyalukkas Wedding Centre Kollam. The duration of the project was two weeks.
1.2 Scope of Study
This project report is based on the study conducted at its corporate office and Joyalukkas Wedding Centre Kollam. The duration of the project was two weeks.
1.3 Objectives of the Study
The objectives of the study are To understand organization structure. To understand the industrial discipline in the organization and the responsibility of the employees. To know various activities involved in the organization. To identify strength and weakness of the organization and also identify opportunities for improvement.
To fulfill any task, it is necessary to follow a certain methodology. The methodology used in the study is described here Type of study: The type of the study was descriptive in nature. Sources of Information The relevant data in the subject under study was collected from the following sources. 1. Primary source:- These data was collected directly from the different departmental heads. 2. Secondary source:- The secondary data was collected from various journals, manuals and existing records of the company.
1.5 Limitations Of the Study
The reliability of the data used in the study is depended upon the company records and information given by the employees. In depth study of the company could not be carried out due to shortage of time.
CHAPTER II BUSINESS ENVIRONMENTAL ANALYSIS
2.1 Business Environment Analysis
The PESTEL analysis
The macro environment includes all relevant focus outside a company‟s boundaries relevant in the sense that they are important enough to have brought on the decision. An industry ultimately makes about its business model and strategy.
Political Factors:The Government of India (GoI) has been working to develop the Gems and Jewellery Industry in India through several initiatives but under the purview of Gems and Jewellery Industry. The main political factors are as follows. • Excise duty: In the budget of year 2008-09 government reduce excise duty from 10% to 5% on cut and polished Gems and Jewellery units. • Marketing and control orders: Import of rough jewellery are controlled by the Jewellery export Promotion Councils. The Council provides market information to its members regarding foreign trade inquiries, trade and tariff regulations, rates of import duties, and information about Diamond fairs and exhibitions. • FDI approval: India is now the third most favored destination for Foreign Direct Investment (FDI), Government of India may permits 49% of FDI in the Gems and Jewellery Industry. FDI of $ 2 billion are invested in terms of working capital in the industry.
Trade Policy for Diamond Replenishment Licenses: The exporters of gem and Gems and Jewellery products are entitled for REP licence as per rates indicated in the Handbook of Procedures. Such licences are transferable. Gems and Je wellery Imprest Licence : Gems and Jewellery Imprest Licences are issued in advance for import of rough gold and diamonds and for export of cut and polished diamonds. These licences or the
materials imported against them may be freely transferred after the export obligation has been fulfilled.
Economic factors:Per capita consumption:Per capita consumption power of customers may highly affect Gems and Jewellery purchase. India`s per capita income is likely to grow more than double over the last seven years, to Rs 38,084 in the current fiscal, reflecting improvement in the living standards of the average Indian. • Per capita income, according to the advance estimates for national income is expected to grow by 14% during the current fiscal. • However, after discounting for inflation, per capita income is expected to rise to Rs 25,661 representing an increase of 5.6%.
National income: As & when the national income of the people of any country increase it will indirectly leads to more investment in Gems and Jewellery jewelry or ornaments. State board regulations: Gujarat government declares various polices. Custom Act: In the Union Budget (2007-2008), custom duty on cut & polished gold and diamond was reduced to 3% from 5%. The Council had made several representations to Government on the exemption of custom duty on cut & polished diamonds.
Social factors:The main social factors of the organization, which are deals as the business organization are as follows. Emergence of retail org. makes people aware about Gems and Jewellery as a luxury product or an investment option. Emergence of substitute: Diamond is preferred by consumers with increase in the price of gold. Changing consumer preferences: With the increase in standard of living it‟s also considered for status symbol.
Technological factors:The main technological are as follows. • As Gems and Jewellery Industry try to moving up in to the value chain they are focusing more on they use high end equipments. • Technology solutions are also available for production control, supply chain and inventory management in the Gems and Jewellery Industry. The Special Economic Zones and Gems and Jewellery Parks developed in various states offer technology-enabled environments that are conductive to growth and quality production.
Environment Factors:This section draws on literature relating to the general environmental impacts and related processing activities, and – where available – and specific information relating to the production of gemstones. In relation to environmental impacts of gold and gemstone in particular, the situation in each country varies according to the type of gemstones and gold being exploited, the social and natural environment of the area and cultural and organizational aspects of the mining operation itself. Exploration Underground Extraction Surface Extraction River Dredging
. Legal Factors:• Trade Facilitator: The Gems and Jewellery Export Council(GJPEC) undertakes direct promotional activities like organising joint Participation in international Gems and Jewellery shows, sending and hosting trade delegations
• Advisory Role: A crucial area of activity of the Council has also been aiding better interaction and understanding between the trade and the government. • Nodal Agency for Kimberly Process Certification Sche me: GJEPC has been appointed as the Nodal Agency in India under the Kimberly Process Certification Scheme. • Training and Research: The Gems and Jewellery Export Promotion Council runs a number of Institutions that provide regular and part-time training in all aspects of manufacture and design in Mumbai, Delhi, Surat and Jaipur. • Boosting Exports: Among the promotional activities GJEPC undertakes for the sector is the organising of joint participation of member - exporters in some important international exhibitions and puts up promotional stalls in others
Threat of Substitutes : Low From historic times, gold has played a pivotal role in the Indian social fabric. Gold is valued in India as a savings and investment vehicle and is the second preferred investment behind bank deposits. Gold is also the preferred metal in jewellery. Domestic diamond jewellery demand is low, but increasing at a high rate because of higher incomes and aggressive marketing strategies. Bargaining Powe r of Suppliers : Medium With negligible production of gold and gemstones, India relies largely on imports. Bargaining power of Indian industry enhanced by the fact that India is the largest
consumer of gold. In rough diamonds, the major global suppliers have very few alternative customers (cutting and polishing) for their cheaper range of roughs.
Inte r-Firm Rivalry : High Bulk of the industry in India is co n concentrated in the unorganised sector and employs around 1.5 million workers serving over 0.2 million gold jewellers and over 8,000 diamond jewellers. The majority of India's diamond workforce is employed by small units, that process diamonds on a job- lot basis. However, the share of the unorganised sector has declined in recent years.
Bargaining Powe r of Buyers : Low to Medium Bargaining power in gold jewellery limited to fabrication charges. In diamond cutting and polishing, the bargaining power of Indian exporters arises from the fact that a majority of the world's rough diamond production is cut and polished in India.
Barrie rs to entry : Low Low capital requirements, but skilled manpower is essential. Ability to invest in more advanced technology is becoming increasingly critical.
2.2 INDUSTRY PROFILE 2.2.1 Global scenario
The global market for gems and jewellery today is pegged at US$ 85 billion with key markets having registered an average compounded annual growth rate (CAGR) of 510 per cent in the last decade
The global market for Gold is estimated at 3300 tonnes. South Africa is the world‟s largest producer of gold, followed by U.S.A and Australia. Together, these countries account for 45 per cent of the world‟s total gold production. India is the largest consumer of gold, followed by the U.S.A. In the production of Silver, the Americas have near monopoly -Mexico, Peru and the United States are the top three silver producing countries. Platinum is an extremely rare precious metal. More than 90 per cent of all platinum supplies come from South Africa and Russia. With increased economic development, the demand for the metal has grown at a faster pace than it is being mined. The United States is the world‟s leading consumer of platinum overall, while China has emerged as the leading consumer of platinum jewellery Over the years, global markets have been impacted by several developments like falling trade barriers, increasing competition, changing customer preferences and developments in technology in several areas. The global jewellery industry is being transformed by a few key trends such as Increasing competition among top producing countries .Emergence of different materials – different alloys within gold, as well asnon- gold jewellery Emergence of new manufacturing techniques Requirement of stricter quality norms and hallmarking.In this context, India is fast emerging as a leading destination for jewellery manufacturing in the world.
2.2.2 Indian scenario
Precious metals and gemstones have been an integral part of the Indian civilisation throughout its recorded history. Gems and jewellery has been consumed by Indians for centuries for both their aesthetic as well as investment value. India has the distinction of being the first country to introduce diamonds to the world. The country was also the first to mine, cut, polish and trade in diamonds. (Source: CARE Report)
The Indian gems and jewellery industry can be classified into various sub segments for diamonds, coloured stones, gold and silver jewellery, pearls, and others. However, the two major industry segments in India are gold jewellery and diamonds. India dominates the diamond processing trade with 11 out of 12 diamonds being cut and polished in India (around 80% in terms of carats and around 55% in terms of volume). India also dominates gold and silver consumption globally with consumption of approximately 700 tonnes (gold) per year. As a major foreign exchange earner, the industry also provides employment to approximately 1.5 million people directly and indirectly. (Source: CARE Report)
The Indian gems and jewellery industry is one of the world’s most competitive markets due to the low cost of production and highly skilled labour. According to the Federation of Indian Chambers of Commerce and Industry (FICCI), the Indian Gems and Jewellery industry - consisting of the domestic and the export market has the potential to grow from the current US$45 billion to US$100 billion by 2015.
As per the FICCI Technopak Report India’s current dominant position lies in low value processed raw materials, as depicted on the Gems and Jewellery Value Addition Ladder below:
Fig ref no: 1.1 Gems And jewellery value addition ladder.
The domestic market of gems and jewellery is estimated to be in the US$ 18-20 billion range. Given the fragmented nature of the industry it is difficult to put a finger on the exact size. The industry is expected to grow at around 13% annually and at this rate it could reach US$ 35-40 billion by 2015. Currently the domestic gems and jewellery market is fragmented across the value chain. There are more than 300,000 players across the gems and jewellery sector, with majority of them being small unorganised players who are operating on wafer thin margins. Organised retail of jewellery thus presents a significant opportunity to create additional value through higher margins, which would be possible through differentiation and branding. With the onset of organised retail in the last decade, lots of new players have entered the space. Currently modern retail players in jewellery space have only 5%-7% share of the total jewellery market, but this number would increase considerably in the near future. (Source: FICCI Technopak Report)
Fig ref no: 1.2 Organised retail in different sectors. (Source: FICCI Technopak Report)
The industry is characterised by a significantly large unorganised sector, labourintensive operations, high working capital & raw material intensiveness, gold price volatility and export orientation. The demand for gold and diamond jewellery is driven by festivals, weddings and gifts, the increasing affluence of the middle class population and the increase in per capita on luxury items. (Source: CARE Report)
Though India plays a dominant role in the gems and jewellery industry in terms of processing and consumption, India’s role in mining gold and diamonds is amongst the lowest in the world. Gold is imported from countries like Switzerland, South Africa, Australia and the United Arab Emirates, and rough diamonds are imported from Belgium, the United Kingdom, Israel and the United Arab Emirates. There has been an impact on the demand for gold due to the record high price of gold in the last
couple of years, but consumers have continued to demand the precious metal and there is an increased investment-related demand for gold. The key drivers for growth in the industry are increasing disposable income, conscious marketing efforts, rising population with the urge to spend on jewellery as a fashion accessory.
2.2.3 State Scenario
CHRONOLOGICAL GROWTH OF GOLD ORNEMENT MFG. INDUSTRY IN THE STATE OF KERALA Before 60s Dominance of Viswakarma (gold smith) based units Mid of 60s Entry of trading and branded firms into this cluster Late 60s Ban gold movements and complete break-down of Dominance of Visa Karma (gold smith) based units Late 70‟s Dominance of few firms and invasion of other community and unemployed youth. And losing grip of family and community based activity. Early 80s Entire gold Jewellery manufacturers are turned into a job workers category and the entire markets were being controlled by few traders. Early 90s New trade policy , which did favour to the artisans type cluster Mid 90s Quitting and changing of trade and business was witnessed for better survival 2000 The entry of few registered SSI based units into this sector were witnessed 2005-11 new vision and thriving of trade are being witnessed.
2.3 Industrial Analysis
Precious Metals and Gems
Gold is more than a precious metal in Indian culture and is truly entrenched in India’s culture. For hundreds of years, gold has been an important part of the Indian society and fused well into the psyche of an Indian. There is a tradition of buying gold during auspicious occasions such as Diwali, Akshaya Tritiya, Dussehra, and also during weddings. In rural India, farmers typically buy gold jewellery after a successful harvesting season as it is valued for its investment characteristics and as a hedge against inflation.
Fig ref No.1. 3 Geographical segmentation of gold
In 2009, total Indian gold consumption reached US$19bn or ` 974 bn equivalent at the end of 2009. Over the past decade, this has increased at an average rate of 13% per year, outpacing the country’s real GDP, inflation and population growth by 6%, 8% and 12% respectively.
Gold jewellery demand in India, the world’s largest gold jewellery market, rose 67% year -on- year to 272 tonnes in the first half of 2010. Over the same period, the average domestic gold price surged to almost ` 52,800/oz, before hitting a new high of ` 60,460/oz on October 15, 2010. Despite the higher gold price, market sentiment remains positive, especially with the local gold market also benefitting from the strengthening of the rupee against the US dollar.
Fig ref No. 1.4 Average annual 10 year growth rate in India
India is the biggest consumer of gold in the world. To meet Indian consumption requirements for jewellery and investments, India imported 590 tonnes of gold in fiscal 2009. Almost 95% of the gold imported to India is used for jewellery. The
major countries which supply gold to India are Switzerland, South Africa, Australia and the United Arab Emirates. A majority of gold in India is sold in retail sales and a small portion is held as reserves with the central government treasury.
The CARE Report indicates that along with gold, silver enjoys a special place in the psyche of the Indian consumer and is considered the second-best investment option in precious metals. In the last two years, silver prices have grown significantly in line with the rise in gold prices resulting in a decline in demand for jewellery and fashion accessories. Going forward, CARE Research expects that the silver price movement will tend to follow the gold prices as the prices of silver and gold in Rupees have shown a correlation of 0.98 in the last 10 years.
India is one of the leading diamond processors in the world. With the rise in gold prices, consumers are turning to diamond-studded jewellery which gives them a higher perception of luxury and value. The craftsmanship and low cost of Indian diamond processors has given India a competitive edge in diamond cutting and polishing. The CARE Report indicates that India accounts for approximately 55% of the global polished diamonds market in terms of value, 80% share in terms of caratage and 92% in terms of pieces. India’s dominance in the cutting and polishing segment has been attributed to superior craftsmanship, low cost of Indian lab Joyalukkas and superior technology. ()
Due to the global slowdown, diamonds are comparatively less expensive than they were in 2007. With only a gradual recovery from developed markets for diamonds, especially the US, Indian manufacturers have now focused in on the ever-growing demand from domestic market for diamond-studded jewellery. Given these new
trends for diamond jewellery, diamond jewellery sales have increased by a multiple of four, from USD 1 billion to USD 4.2 billion in the last four years according to industry experts.
Fig No.1. 5 Geographical Segmentation of Diamonds in India According to some estimates, about 25% of the gold jewellery purchasers have switched to diamond- studded jewellery because diamond-studded jewellery is typically created in less-pure 18-carat gold compared to gold jewellery which is made from 22-carat gold.
Demand and Supply
India experienced the highest growth in jewellery demand, posting an increase of 36%. A rise in the value of the rupee against the US dollar offered Indian consumers some degree of protection from the full extent of the rise in the US$ price during the quarter. Demand increased to 184.5 tonnes from 135.2 tonnes a year earlier. In local currency value terms demand reached a remarkable ` 338bn, 67% higher than the same period of 2009. Restocking by the trade ahead of the fourth quarter festive season was a key driver of growth. The India International Jewellery Show (IIJS) in
August in particular witnessed enthusiastic demand. Given the dual purpose of Indian jewellery, as both an adornment and an investment, the rising price helped to support demand for jewellery. Furthermore, consumers have adjusted their price expectations and are anticipating yet higher prices. This has had the twin effects of further reinforcing investment related demand for gold jewellery while also encouraging consumers to purchase gold now rather than defer purchases to a time when prices are higher. (Source: Gold Demand Trends, November 2010)
Manufacture of Jewellery
Jewellery manufacture, diamond polishing and setting is a process that requires significant skill. Although machines can perform some part of the work, the process is very labour intensive. India, with its availability of low-cost skilled labour is in a position to deliver products of good design and quality at a low cost.
India has well-established capabilities in manufacturing hand- made jewellery in traditional as well as modern designs. Indian hand- made jewellery has ethnic demand in various geographies with a high Indian population like Middle East, the US and Canada. With traditional hand- made jewellery, India has also progressed in using the latest technologies in diamond-processing and jewellery- making. Many of India’s manufacturing companies are now equipped with latest Computer Aided Design /Computer Aided Manufacture systems and other advanced software programmers. The diamond processing companies have modern equipment, such as laser machines, automatic and semi-automatic bruiting machines and auto planners. India also has an ample professionally-trained workforce which is well- versed to operate the latest equipment.
Branded jewellery has been a relatively recent phenomenon in India because most jewellery is sold in the unorganized sector. Consumers have become more informed about the quality and certification of gold jewellery and are now insisting on certification. Traditionally, gold has been purchased because of its investment value along with aesthetic value, unlike in countries other than India, where it is bought only for ornamental purposes. With changing demographics, the branding of jewellery and the retail revolution, young customers (from age groups of 20-40 years) prefer buying jewellery for fashion rather than for investment. Many companies have started investing in brand-building exercises for their products. All these efforts are expected to result in higher growth in the branded and therefore also organised jewellery market.
The branding of jewellery in India follows the pattern in the international market where 90% of the jewellery is sold as a fashion accessory or as everyday wear and not as an investment. Branded jewellery in India is positioned as a lifestyle and personality statement. There has also been a shift in consumer preference towards diamond-studded jewellery due to the extensive positioning of diamond-studded jewellery as both affordable and contemporary. Another key development in branded jewellery] has been the introduction of value added services such as the certification of gold and diamonds, and lifetime return and buy-back schemes. These trade practices have resulted in the perception of superior quality being associated with branded jewellery. The new generation of jewellery purchasers does not have ongoing relationships with local jewellers and prefers to buy branded jewellery. ()
In India, organised retailers account for a mere 4% of the total jewellery retail market. This is because of the buyer‟s preference and trust in their neighborhood goldsmith. Even the standardisation of designs is not possible due to varying local tastes. There are about 15,000 vendors across the country in the gold processing industry, with over 450,000 gold smiths spread across the country. There are also more than 6,000 vendors in the diamond-processing industry (). Organised vendors have been growing steadily, carving a market share of 4% of the industry (). With consumer preference for fine quality goods, branded jewellery, hallmark certification and maturity in the jewellery market, organised retail share is expected to grow. Elevated go ld prices, higher borrowing and operating costs, makes the survival of family-owned jewellers difficult as well.
Gold is a renowned metal not only for its traditional use for adornment but also for its stance as a time tested investment-class asset. The price of gold is determined by the fundamental demand-supply dynamics of the gold bullion market. Gold is considered to be a relatively safe investment in times of economic volatility and uncertainty. With the recent weakness and high fiscal debt levels of major western paper currencies, gold has attracted many investors, as evidenced by gold’s record high prices in the last two years. The Indian consumer is generally regarded as sophisticated and price sensitive and remains very risk averse when the prices are volatile. When prices are high an increase in sales of scrap gold is often observed and conversely when prices fall or show signs of stability, it results in an increase in demand. ().
2.3.1 Industry Key Players
Gitanjali Group Having won over 50 awards from the Ministry of Commerce, India for outstanding exports of diamond and jewellery, is today over $1000 million multinational group, and a publicly listed entity. Operations span the globe, all the way from USA, UK, Belgium, Italy and the Middle East to Thailand, South East Asia China, and Japan.
Joyalukkas The Group has grown with 10 million customers and employs a highly committed and satisfied team of over 3000 people in various countries.
Tanishq Belonging to the House of Tata, it is one of the most successful jewellery brands in India. There are a total of 84 stores in 61 Indian cities at present.
D‟Damas D'damas is one of the most popular jewellery brand in the country today with a presence in over 159 towns and cities.A joint venture between Gitanjali Gems and the Dubai based Damas Group; D'damas is a sub-brand that combines international quality with Indian values.
Reliance Jewels planning an aggressive entry into the jewellery retail market through its about 400 to 500 jewellery retail outlets across the country.
Tbz The original has been pioneers in jewellery business since inception in 1864. The original has employeed a leadership status in its design. Quality and consumer satisfaction for well over a centuary across generations
Of late, some of the world's biggest names in the jewelery and luxury items such as watches and cuff- links are making inquiries to set up shop in India. Multi- national jewelery brands such as Tiffany, Cartier, Zales and Harry Winston are all said to be interested in coming here following the Government's decision to allow foreign direct investment of up to 51 per cent in single brand retail stores. Most of these stores have been sourcing cut and polished diamond and gold items from Indian firms. Now they are making inquiries for possible tie-ups in India.
2.3.2 Competitor Analysis
Major Competitors Gitanjali grp Tanishq Tbz Prince jewellers.
Chapter III ORGANIZATIONAL PROFILE
3.1 Background And History
JjJoy Alukkas, followed in his visionary father‟s footsteps and expanded the „Joy Alukkas‟ name to a global level. His father Varghese Alukkas started his first jewellery showroom way back in 1956 and since then Joy Alukkas has made „Joyalukkas‟ an household name in jewellery. Joy Alukkas took his first step by setting the jewellery showroom in UAE in the year 1987.
Joy Alukkas‟s success is the result of his forethought. In 1987 he flew to UAE to explore the untapped market and little did he realize that he was going to change the way the world looked at jewellery. He set up his first shop in Abu Dhabi followed by Dubai, Sharjah, Al Ain and Ras al-Khaimah. The expansion since then has continued to Europe in countries like UK, Qatar, Oman, Bahrain and Kuwait.
Despite running a multi dollar retail gold and diamond jewellery business halfway across the world, Joy Alukkas wears his success lightly. He has his ear to the ground, his finger on the pulse and his feet on the ground. The fact is Joy Alukkas got to where he is because he never compromised with its corporate values and strongly believed that satisfied customers are the backbone of a company.
Joyalukkas became the first jeweller in the Middle East to be awarded both the ISO 9001 and ISO 14001 certification and to be recognized by the Dubai government with the Dubai Quality Award under Trade category in 2008.
.Joy Alukkas revolutionized retail jewellery trade in India by introducing training programs for its employees and also brought the concept of „wedding centre‟ within the jewellery store. Many a feathers are attached to the success hat of Joy Alukkas, including the opening of the world‟s largest showroom and the first Diamond Cave in Chennai, India, considered the jewellery hub of India. The phenomenal success of this showroom and this unique concept has proved his foresight and business acumen.
3.2 Vision, Mission, Objectives and Goals
To become a global brand by ornamenting the world.
To improve and enrich lives everywhere by offering extraordinary lifestyle solutions backed by incomparable value-additions, adhering to globally approved processes and norms and creating a successful value- chain for our associates.
Plans to open 100 new showrooms by 2010, making it Asia‟s largest chain of jewellery showrooms. By the end of the decade, Joy Alukkas is poised to be the World‟s No. 1 jewellery chain
The primary goal of Joyalukkas is to ensure that every customer is 100% satisfied with their Joyalukkas purchases.
3.3 COMPANY PROFILE
Joyalukkas is a popular jewellery retail chain that has rapidly expanded it‟s presence across India in the past few years. Today the jewellery retail chain has strongly marked its presence in the states of Tamil Nadu, kerala, Karnataka & Anthra Pradhesh is also present in the cities of Mumbai, Puducherry, Guragon (Haryana). Joyalukkad employs a high;y commited and trained team of over 2300 employees across its various locations in India. The success and growth of Joyalukkas has been driven by its growing customer base.
Joyalukkas jewellery has won many awards and recognition for its excellent business practices and skilled jewellery retailing. The most recent being the Retail chail of the year and Best Single Store (Joyalukkas Chennai Showroom) at the „National Jewellery Award 2011” organized by All India Gems And Jewellery trade federation (GJF), it has also been recognized for being the highest VAT paying jewellery Group at the Kerala Gem and Jewellery show organized by the Deopartment of Industries and Commerce, Government of Kerala.
Jotalukkas is renowned within the Jewellery lovers for its choice, quality and service, and value offering. It is one of the consistently growing jewellery retail chains in India with plans to expand its presence all across India.
Joyalukka is currently operating 24 Jewellery showrooms across India. Plans to open an additional 13 new showrooms are already in place, and Joyalukkas to complete the expansion plans by September 2013. Joyalukkas showrooms offer a wide variety of jewellery in Gold, Diamonds, Pearl, Platinum & precious stones. Some of the joyalukkas showrooms also feature silver jewellery and silver items.
The Joyalukkas chain also includes „Wedding Centers‟ which offers a wide variety of clothing and fashion accessories for weddings and regular use of ladies, gents and kids. The „weddimg centers‟ aim to offer an integrated shopping experience to shoppers, where they can purchase jewellery ,clothing and accessories for wedding and other occasions from one single store. The Joyalukkas Wedding Centers are located in Kerala and is most popular in its respective locations.
Joy Alukkas Group has always believed that people and the community within which operates are the cornerstones for its success and as such is active ly involved in CSR activities across various states in India. Joyalukkas consistently undertakes various programmes to help the needy and encourage cases that benefit the society. From building homes to helping flood victims when they require financial ass istance, the group ha always believed in being there when needed the most.
3.4 Products And Market
Joyalukkas portfolio of finished jewellery products includes, among others, Studs Chains Bangles Necklaces Bracelets Rings anklets.
Textiles and Apparels Market
Joyalukkas textiles, apparels and accessories business operations are carried out through their four Wedding Centres situated in Kerala. Joyalukkas‟s largest Wedding Centre is situated in Kollam having a floor area of approximately 39,896 sq. ft. Our Wedding Centres aim to offer an integrated shopping experience where Joyalukkas customers can purchase premium jewellery, clothing and accessories for weddings and other festive occasions in the same store. Further, our Wedding Centres cater to the textile requirements of an entire family, with its wide collection of men’s, women’s and children’s apparel. Joyalukkas believe this is an innovative concept and enables their Company to cross sell their products and also to create a loyal customer base. The purchase division for the Wedding Centres is spread across their four stores. The Manager (Textiles) heads the textile division. All purchases for the Wedding Centres
are directly controlled by the Manager (Textiles) and orders for purchase are placed based on the requirements received from each of the Wedding Centres.
As of December 31, 2010, Joyalukkas textile and apparel division comprised of 535 employees. Joyalukkas textile and apparel purchases can be broadly categorized into: (a) seasonal purchases, (b) non-seasonal purchases and (c) purchase for export sales.
A. Seasonal purchases - These are bulk purchases made to fulfill Joyalukkas seasonal requirements, such as during Onam, Christmas and New Year seasons. Based on the previous year‟s sales figures, Joyalukkas purchase division prepares a purchase budget for the upcoming season. The purchase requisitions and purchase orders are prepared and approved based on this budget.
B. Non-seasonal purchases - These purchases are made based on Joyalukkas stock position and the anticipated marketability of certain unique and new products.
C. Export sales - These purchases are made for the purpose of Joyalukkas export sales of textiles and apparels to Joy Alukkas Center LLC, Sharjah.
3.5 Certifications, Awards, Recognitions
Fiscal Year Awards
Best Single Retail Store of the Year‟ award to Joyalukkas chennai
showroom at the National Jewellery Awards
Organized by the All India Gems and Jewellery Trade Federation
Best Retail Jewellery Chain of the Year‟ award at the National Jewellery
Awards 2011 organized by the All India Gems and Jewellery Trade Federation
Retail Chain of the Year Award at the Retail Jeweller India Awards 2010
instituted by the Retail Management Group‟
Highest Commercial Tax Payer in Jewellery Retail at the Kerala Trade
Awards 2010 organised by the Government of Kerala
Retail Jeweller India Awards for the television campaign, 2009 instituted by
the „Retail Management Group‟
360 Degree Marketing Campaign for the Year 2009 at the Retail Jewe ller instituted by the„„Retail Management Group‟
2009 Gem &
Kerala’s Highest VAT Payer in Gem & Jewellery Industry at the Kerala Jewellery Show – Gold Souk Awards
2008 by the
Best Consumer Choice Award at the Retail Jeweller Awards, 2008 instituted „Retail Management Group‟
Best Overseas Retailer of the Year at the Kerala Gem & Jewellery Awards,
2008 at the Kerala Gem & Jewellery Awards, 2008
Best Retailer of the Year at the JJS Gold Souk Awards, 2007
Best Retail Promotion of the Year at the Retail Jeweller Awards, 2006 „Retail Management Group‟
instituted by the
3.6 Business Performances
Joyalukkas is one of the leading jewellery companies with focus on Large Format Stores. Joyalukkas jewellery business consists of the sale of jewellery made of gold, diamond and other precious stones, platinum and silver. Joyalukkas have also engaged in the business of selling textiles, apparels and accessories through our Wedding Centers in Kerala. Joyalukkas offer a wide range of products across various price points and cater to customers across all market segments. In Fiscal 2008, 2009 and 2010, Joyalukkas sold 7,154.35 kg, 8,430.05 kg and 8,807.46 kg of Gold, respectively. In Fiscal 2008, 2009 and 2010, Joyalukkas total income from sale of Gold was ` 7,500.64 million, ` 11,248.35 million and ` 14,468.25 million, respectively, representing a CAGR of 38.89% over the a foresaid period. Joyalukkas conduct jewellery retail business under the brand name „Joyalukkas‟. Joyalukkas started retailing jewellery in India in the year 2002 with the launch of their first retail store at Kottayam in Kerala.
As of December 31, 2010 Joyalukkas had 22 retail stores, of which 10 are Large Format Stores, each having a floor area of 12,000 sq. ft. or more. Further, Joyalukkas intend to set up three new Large Format Stores in Kumbakonam, Hubli and New Delhi and three new Wedding Centres in Kozhikode, Thrissur and Thiruvananthapuram by September 2013, each with an estimated floor area of 12,000 sq. ft. or more.
The following table depicts the details of Joyalukkas jewellery, and textiles, apparels and accessories business operations as of and for Fiscal 2008, 2009, 2010 and as of and for the six month period ended September 30, 2010:
Six months ended September 30, 2010
Floor (sq. ft.)
Textiles, Apparels and Accessories 3
Gold Sales (in 7,154.35 kg)
Revenue (` in million)
Jewellery Textiles, Apparels and Accessories
*As per the certificate obtained from Molekules Interior Studios, Sai Lake Residency, Near Adarsh Nagar, Kolbad, Thane (West), Mumbai 400 601.
no 1. Joyalukkas jewellery, and textiles, apparels and accessories
business operations as of and for Fiscal 2008, 2009, 2010 and as of and for the six month period ended September 30, 2010
Joyalukkas premier Stores are the three Large Format Stores situated in Chennai, Bangalore and Coimbatore, having an aggregate total floor area of 96,309 sq. ft. Joyalukkas sell textiles, apparels and accessories through Joyalukkas four Wedding Centres situated in Kerala (Angamaly, Thiruvalla, Kollam and Ernakulam) having an aggregate floor area of 157,593 sq. ft. Our Wedding Centres aim to offer an integrated shopping experience where Joyalukkas customers can purchase premium jewellery, textiles, apparels and accessories for weddings and other festive occasions in the same store. Joyalukkas believe this is an innovative concept and enables their company to cross sell their products and also to create a loyal customer base. Further, our Wedding Centres cater to the textile and apparel requirements of an entire family, with their wide collection of men’s, women’s and children’s apparel.
As of March 31, 2010 and September 30, 2010, Joyalukkas maintained an aggregate inventory
of 2,222.74 kg and 2,385.47 kg of Gold, respectively. In addition they maintained an inventory of jewellery made of diamond and other precious stones, platinum and silver, all with an extensive array of designs.
As of December 31, 2010, Joyalukkas had 2,347 employees, comprising 1,311 employees working in division, 535 employees in textile division, 420 employees in administrative office and 81 employees in purchase department.
3.7 Strategic Plans and Future Programmes
The key elements of Joyalukkas business strategy are as follows:
Continue to expand Joyalukkas network of Large Format Stores and Wedding Centres
We intend to continue to develop Joyalukkas existing branded jewellery lines and introduce additional sub-brands and product offerings to cater to Joyalukkas customers and price segments in the diamond and platinum jewellery markets through expansion of Joyalukkas retail operations. We intend to capitalize on Joyalukkas significant experience and expertise in developing the branded jewellery market in India. Further we intend to leverage Joyalukkas goodwill associated with Joyalukkas existing brands, to further develop Joyalukkas various sub-brands in target markets and product segments in India. Joyalukkas seek to achieve this through expansion of Joyalukkas retail operations, increased marketing initiatives, innovative promotional campaigns and extensive advertising.
Joyalukkas large Format Stores are typically situated at strategic locations in prominent cities, such as in Chennai, Bangalore and Coimbatore. By September 2013 we intend to set up three new Large Format Stores in Kumbakonam, Hubli and New Delhi and three new Wedding
Centres in Kozhikode, Thrissur and Thiruvananthapuram, each with an estimated floor area of 12,000 sq. ft. or more. Joyalukkas large Format Stores in India offer comprehensive product range of jewellery made of gold, diamond and other precious stones, platinum and silver to target various jewellery categories and different customer and price segments as well as to provide custom made jewellery.
Our Wedding Centres are Large Format Stores that house a wide range of jewellery, textiles, apparels andvaccessories that specially cater to customers looking for wedding related purchases. Our Wedding Centres aim to offer an integrated shopping experience where Joyalukkas customers can purchase premium jewellery, apparel and accessories for weddings and other festive occasions under one roof. In Fiscal 2010 and for the six month period ended September 30, 2010, Joyalukkas total income from sale of textiles, apparel and accessories in our Wedding Centres was ` 1,404.81 million and ` 751.26 million respectively, which constituted 7.70% and `
Further increase their percentage contribution of diamond and platinum jewellery business to their total revenues
The sustained growth of Indian economy coupled with growing employment levels, income levels and availability of credit in India has resulted in greater consumer spending and disposable income. This has boosted the retail business in India and consequently resulted in the growth of retail jewellery business and increasing demand for jewellery made of diamond, platinum and other precious stones. In Fiscal 2009, 2010 and six months ended September 30, 2010, Joyalukkas revenue from the sale of jewellery made o f diamond, platinum and other precious stones constituted 10.61%, 11.98% and 13.50% respectively of Joyalukkas total revenue. We intend to continue increasing Joyalukkas diamond and platinum jewellery retailing business and use Joyalukkas ability to provide a wide range of jewellery products of various grades, designs and price segments, Joyalukkas strong branded jewellery lines and our wide retail trade operations to increase Joyalukkas market share in diamond and platinum jewellery in India. Joyalukkas also intend to capitalize on the gradual shift of consumer
preferences in India from traditional gold jewellery to jewellery made of diamond, platinum and other precious stones.
Continue to invest in their marketing initiatives and brand building exercise
We intend to continue investing in Joyalukkas marketing initiatives and brand building exercise, including advertising through various media. In Fiscal 2010, and for the six month period ended September 30, 2010, Joyalukkas had expended ` 480.56 million and ` 333.92 million respectively, towards advertising and sales promotions expenses, which constituted 2.64% and 2.66% respectively of Joyalukkas total income. Further Joyalukkas shall continue to consult external agencies on the optimum allocation of Joyalukkas marketing resources by determining the appropriate media vehicle for reaching out to Joyalukkas retail customers. Joyalukkas believe that effective marketing is important for future revenue growth, to improve Joyalukkas company’s brand visibility, to establish relationships with target markets and to sell a great number of Joyalukkas products in a competitive cost effective manner.
Set up service centres in Bangalore and Chennai
We intend to set up specialized service centres in Joyalukkas large Format Stores situated in Bangalore and Chennai. These service centres would cater to our wide range of customers by providing free service on Joyalukkas jewellery products. This may also increase the number of repeat customers, establish long term relationships with Joyalukkas repeat customers and increase the sales of a wider range of jewellery products.
CHAP TER - IV
4.1 Organisational Structure
Joyalukkas‟s managerial organisation structure is given below:
Fig ref no 2.1 Organization structure
CHAPTER V FUNCTIONAL ANALYSIS
5.1 Materials & P rocurement
The following flowchart indicates the mode of procurement of raw materials for the manufacture of gold jewellery:
Fig ref. no 3.1 procurement of raw materials for the manufacture of jewellery
Joyalukkas jewellery products consist of four product segments:
(a) Gold jewellery; (b) Diamond jewellery; (c) platinum jewellery and jewellery made from other precious stones; and (d) silver jewellery.
Sourcing of Jewellery
Gold je wellery
Joyalukkas source Joyalukkas inventory of gold jewellery through the following routes:
(a) Purchase of bullion/standard gold from bullion suppliers and converting them into finished jewellery through job-work arrangements; (b) Purchase of finished gold jewellery from independent jewellers/ suppliers; and (c) Purchase of old gold jewellery from customers and converting them into finished jewellery through job-work arrangements.
Joyalukkas place orders for the purchase of bullion/standard gold from gold suppliers or finished gold jewellery from a large number of local independent jewellery manufacturers, based on Joyalukkas requirements received from each of Joyalukkas
retail stores, through Joyalukkas centralized purchase division having regional offices. The bullion/standard gold is converted into finished gold jewellery through job-work arrangements with Joyalukkas dedicated group of goldsmiths/ job-workers. Joyalukkas select the jewellery designs, based on market trends and Joyalukkas requirements in each of Joyalukkas retail stores, or Joyalukkas obtain designs through leading design houses. The raw materials required for the manufacture of gold jewellery products, such as, standard gold/bullion, copper and colored-stones are provided by us to the job-workers, based on Joyalukkas requirements. Joyalukkas have entered into agreements with major suppliers of bullion, such as, with the Bank of Nova Scotia for spot purchase of bullion and also entered into supply agreements with some of Joyalukkas major suppliers of finished jewellery and job-workers. Additionally, Joyalukkas procure old jewellery from Joyalukkas customers who intend to exchange their old jewellery for new designs or against payment of cash.
Joyalukkas currently have five purchase divisions for the purchase of gold, situated at Thrissur, Coimbatore, Chennai, Bangalore and Hyderabad.
Joyalukkas source inventory of diamond jewellery through the following routes: (a) Purchase of finished diamond jewellery from independent jewellers/suppliers; and (b) Job-work arrangements for manufacture of diamond jewellery.
The procedure followed for the sourcing of diamond jewellery is similar to that of gold jewellery. We currently have four regional purchase divisions for the purchase of diamond jewellery, situated at Thrissur Chennai, Hyderabad and Bangalore. Joyalukkas have entered into supply agreements with some of their major suppliers of finished diamond jewellery.
Platinum Jewellery and Jewellery made from other precious stones
Joyalukkas source their inventory of jewellery made of platinum and other precious stones completely through purchase of finished jewellery from independent jewellers/suppliers. The procedure followed for the sourcing of jewellery made of platinum and other precious stones is similar to that of gold and other jewellery products. Joyalukkas currently have three regional purchase divisions for the purchase of jewellery made of platinum and other precious stones, situated at Thrissur, Chennai and Bangalore. Joyalukkas have entered into supply agreements with some of their major suppliers of jewellery made of other precious stones.
Joyalukkas source their inventory of silver jewellery through the following routes: (a)Purchase of finished silver jewellery from independent jewellers/suppliers; and (b) Purchase of old silver jewellery from customers and converting them into finished jewellery through job-work arrangements.
The procedure followed for the sourcing of silver jewellery is similar to that of gold jewellery. Joyalukkas‟s purchase division for the purchase of silver jewellery is currently situated in Chennai.
Upon receipt of finished jewellery from job-workers/independent jewellers, Joyalukkas undertake the following measures, prior to final sale of jewellery products to end-customers:
A. Quality control
Quality control involves physical verification and inspection of the finished jewellery products and mechanized purity check of the finished jewellery products on a random basis. The physical and mechanized verification is to ascertain the craftsmanship, finishing and purity of the jewellery products. Apart from the regular quality control measures, finished diamond jewellery products are tested on a fourpoint scale: carat, color, cut an clarity. Based on this test, the diamond jewellery is given a grade such as Flawless (FL), Internally Flawless (IF), Very Very Slightly Included (VVS), Very Slightly Included (VS), Slightly Included (SI) or Included (I).
B. BIS Hallmarking/ IGI and PGI certifications
Hallmarking is a gold purity assurance certification obtained from certain agencies certified by the Bureau of Indian Standards („BIS‟), a Central Government authority. BIS is a recognized certification authority in the gold jewellery industry. The hallmarking agencies test the purity of gold contained in the finished gold jewellery products and certifies such purity for each product. Joyalukkas company typically sells hallmarked gold jewellery through its retail stores.
Diamond jewellery is certified by International Gemological Institute („IGI‟). The IGI certification is a purity assurance certification. All diamond jewellery sold at Joyalukkas retail stores is certified by IGI except very small ornaments like nosepins etc.
Joyalukkas platinum jewellery is certified by Platinum Guild International („PGI‟). The PGI certification is a purity assurance certification. All platinum jewellery sold at Joyalukkas retail stores is certified by PGI except very small ornaments like nosepins etc.
Joyalukkas platinum jewellery is certified by Platinum Guild International („PGI‟). The PGI certification is a purity assurance certification. All platinum jewellery sold at Joyalukkas retail stores is certified by PGI except very small ornaments like nosepins etc.
Further, Joyalukkas obtain purity assurance certification for Joyalukkas silver jewellery products from certain outside agencies. The purity assurance certification will specify the purity of silver contained in the finished silver jewellery products.
The hallmarked jewellery products are bar-coded by Joyalukkas company. Barcoding is a process of categorizing, branding and pricing of the jewellery products, prior to distributing the finished jewellery products for sale in Joyalukkas retail stores. Bar-coding provides the maximum price at which a finished jewellery product can be sold. Further, bar-coding also enables the tracking of the finished jewellery products from the time of barcoding until the sale of the jewellery product by invoicing the bar-coded details. Details such as gold content, item code, description of the item, weight, the name of the supplier, brand name, price, and stone value are typically included in the bar-coding of the finished jewellery products. Bar-coding is carried out prior to distribution to Joyalukkas retail stores.
Joyalukkas package their jewellery products prior to their sale to their end-customer. Joyalukkas packaging carries the „Joyalukkas’ brand name and is carried out at Joyalukkas retail stores.
The following flowchart indicates the manufacturing process for gold jewellery :
Fig Ref. no 3.2 Manufacturing process of gold jewellery
Joyalukkas business operations can be broadly categorized into two verticals, namely, (a) manufacture and retail trading of jewellery and (b) retail trading of textiles, apparels and accessories Fig Ref. no 3.2 Operations process flow
PLATINUM AND PRECIOUS STONES
WEDDING AND OTHER APPARELS
Following is the map of India highlighting Joyalukkas existing retail stores
Fig ref no.3. Map highlighting Joyalukkas existing store
5.3 Human Resource Department
As of December 31, 2010, Joyalukkas had 2,347 employees, comprising 1,311 employees working in Joyalukkas jewellery division, 535 employees in Joyalukkas textile division, 420 employees in Joyalukkas administrative office and 81 employees in Joyalukkas purchase department .
HR Policies in the organization
Joyalukkas group is very famous in their HR activities. Human Resource is the most important part of every industry. A gathering of efficient employees is the base of every organization. Without that the organization will struggle to survive. And of maintaining existing and attracting employees good Hr policies should be maintained in the company.
The recruitment policies of a company constitute its need for employees. Recruitment helps a company to meet their human resource needs. It is very important to recruit quality employees. For that a well prepared recruitment policy should be there for the company.
The policy should mention some questions like:
What is purpose of recruiting people? To which area recruitment is made? What all are the skills looking at? What kind of people are we looking for? What are the qualifications needed? Etc.
Recruitment should be able to satisfy all these questions. Otherwise the main aim of the process will be a failure.
Recruitment in Joyalukkas group are conducted on quarterly basis. The company will give advertisements in newspapers and famous T.V channels. Then through normal recruitment procedures recruitment will be made. The rules and regulations of the company will be announced only after the selection process. The procedures of recruitment practiced for both the gold and textile division are different
For gold division employees there will be bonded agreement and candidates will have to submit a cheque worth ` 50000 as a safety measure. The most important part of Joyalukkas group is that even if there exists these kinds of rules they are only for the sake of safety and nothing else. They don‟t hesitate to relieve a candidate who has got another job or opportunities with more benefits. And that‟s one of the main advantages of the company when compared to others.
The newly recruited employees will be appointed as sales trainees for three months. The probationary period of the employees will end by 6 months from the date of joining. In the first month candidate will not be having any salary. There will training sessions by floor managers for three months. There will training by experts from external agencies to make a vision on employees (within first 6 months.)
The uniforms will be provided to the employees after first 3 months. Within this time these candidates are given proper understanding on what they are dealing with and how they should deal with it.
Training & Development
The training and development practices in joy Alukkas is very famous as it focuses at the overall development of the employee. Initially the candidates will be given 3 days training based on the general topic like „About the company‟, the products they are going to deal with, sales techniques etc. and this will be done by experts from famous training house. After the 3 days training the candidates will be posted to different showrooms around the country. The next level of training starts fro m here. The newly selected candidates are not allowed to enter the counter for selling when they come. To enter the sales counter the candidates have to prove his competent for facing the customers. If the supervisor thinks he is competent enough to deal the customers he is allowed to assist a senior salesperson. And this senior person will help the candidate to learn how to route a sale. Here in Joy Alukkas group the candidates or employees are given chance to work in all the department i.e. a candidate will get experience in sales while doing counter sales, he will get experience as a cashier, he will get experience in human resource dept., accounts, marketing etc.. This type of training is only to make sure that they are capable of becoming good future managers and should
be capable of understand these functions as a manager. Here the training will only get to an end when he becomes a manager of a showroom.
For fixing the salary the Joy Alukkas Group are using grade system within which percentage is applied to calculate. The major grades are
Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6
Staff Floor- in-charges Assistant managers Managers Mall managers Functional heads etc.
A percentage is fixed on this entire grade and on basis of these percentages salary is fixed. Apart from fixed salary commission will also enter the package on the basis of different percentage. Here according to the sales achievement by each showroom the commission rate will vary. The most attractive thing about Joy Alukkas Group is that they always try to promote employee savings. Joy Alukkas Group in association with Life Insurance Corporation of India is an appreciatable attempt, through this they trying to promote savings in employees.
Also here in the Joy Alukkas Wedding Center, Cochin, the management and employees are trying a different method of savings by introducing “Employees welfare fund”, here each and every employee have to contribute a sum of amount on monthly basis and they can use this fund in case of emergency as in the loan and they will be charged with a nominal amount of interest. As this in association with HR dept. salary cutting is also possible. While discussing with the HR manager, Wedding Centre Cochin it became clear that the management is more looking towards the growth and welfare of the employees and they are more keen on increasing the personal skills of employees. Initially the food and accommodation was given directly by the company itself by charging a nominal amount from the salary. But for this the company needed to employee more people to carry on with these duties and more cost than what the company was charging from the employees. This was provided to help the employees to get better food and accommodation. But later it came to know that the facilities given were not used properly. The employees were even provided with dobby facilities for uniforms. But these facilities made employees to sit like couch potatoes. As they were provided with good accommodation they were not aware of the rent that they might had given if they choose the accommodation outside, they became unaware of the cost of the food outside, by these they became unaware of how to deal with money as they were not exposed to economic challenges. As the employees began to get more facilities, they began to misuse these facilities. This made management to have a rethink on the provided facilities. For structuring effective future leaders and not couch potatoes, the management reduced the facilities that were given initially. For this employees were paid Rs 3000 extra with their salary for meeting their expenses and blocked all facilities like food, accommodation, dobby etc. Now the thing became simple like for an employee who need s accommodation can either choose the company hostel but for that he needs to pay rent separately, also in case of food he have to completely depend on hotels.
5.4 Marketing department
Create effective campaign to ensure greater band visibility. Ensure all advertisement and promotional activities load to be build up of greater market share of the brand. Constant market analysis to ascertain market perception, change and competitiveness. Engage in brand building exercise.
Joyalukkas marketing initiatives include advertising through various media, such as, television, radio, newspapers and magazines, interactive website, hoardings and display, CCTV visual advertisements at prominent locations, advertisements in cinema hall, bus terminals, railway stations and similar displays. Further, Joyalukkas shall continue to consult external agencies on the optimum allocation of Joyalukkas marketing resources by determining the appropriate media vehicle for reaching out to Joyalukkas retail customers. Joyalukkas also have a professionally composed jingle used for electronic advertisements and as caller-tones. Joyalukkas believe that effective marketing is an important investment in future revenue growth, to improve Joyalukkas brand visibility, to establish relationships with target markets and to sell Joyalukkas products in a competitive cost effective manner. Further Joyalukkas have won the Best T.V. Campaign and the Best 360 Degree Marketing Award in 2009 from the Retail Jeweller Magazine, Mumbai.
In Fiscal 2010 and in the six month period ended September 30, 2010, Joyalukkas had expended ` 480.56 million and ` 333.92 million respectively for advertising and sales promotions across various media as part of Joyalukkas marketing initiative.
Joyalukkas operate in highly competitive and fragmented markets, and competition in these markets is based primarily on market trends and customer preferences. The jewellery industry is still an unorganized sector in India and therefore Joyalukkas face competition not only from other jewellery companies, but also from local jewellers and craftsmen, which affects Joyalukkas business prospects and margins. The Indian retail jewellery industry is highly fragmented and dominated by the unorganized sector, from which the organized retail jewellery sector faces intense competition. The players in the unorganized sector offer their products at highly competitive prices and many of them are well established in their local sectors. Joyalukkas also compete against certain organised national, regional and local players.
Job profile of a marketing manager
Introducing various promotions for increasing sales in gold and purchase. Joining hand with companies/brands for join promotion (as cosponsor) Coordinating the press for media support, Organizing events and lucky draws in connection with promotions.
Handling all showroom advertisements in India. Media planning (print and visual media) Negotiations with all channels and publications. All outdoor copmaigns and advertisements like hoardings, sign boards, neon bords, theatre advertisement, road shows etc. All media releases, press meet etc.
Period wise market survey about product and services. Introducing new product to the market. Comparative study of both competitors and ours.
Roles and Responsibilities
The marketing manager has overall responsibility for effectiveness of the department.
The marketing manager makes an annual plan for marketing activities to be undertaken during the year considering the budget given by the finance department. The annual plan will be approved by the chairman and a copy of the same will be given to the G.M and accounts department. Every marketing activity detailed in the annual plan will be undertaken after receiving the proposal from different advertising agencies. A release order is prepared in triplicate to the best advertisement agency, based on their work, cost timeliness and reliability. The release order will be approved by the G.M and copy will be forwarded to accounts department. On execution of the work order the marketing manager and his assistants monitor the work executed in terms of print, T.V, radio and outdoor advertisement for the quality and also for the outcome.
The marketing manager proposes various promotion plans for the year and d iscusses with the chairman and G.M. All the promotion has to be approved by the chairman. After approval the marketing manager lists out various activities required for executing the promotions like Govt. approval and permission, advertisement material and promotion gifts. A release order is made for the advertisement material and promotional gifts and the necessary approval is taken from G.M.
Company promotion activities are initiated with the banks and other prominent companies and proposal is made and submitted to G.M with a cost benefit analysis. On approval from the G.M. the co-promotion will be executed. All agency items and media release are communicated and approved through release order while promotion gift items, prizes etc are purchased through purchase order (PO).
Packaging Materials & P romotional Gifts
All packaging materials and promotional gifts are custom specific and are purchased using purchase order. (P.O)
5.5 Finance Department
The five basic corporate finance functions are described as those functions related to:
1. Raising capital to support company operations and investments. 2. Selecting those projects based on risk and expected return that are the best use of the company‟s resources. 3. Management of company cash flow and balancing the ratio of debt and equity financing to maximize company value. 4. Management of risk exposure to maintain optimum risk return trade off that maximizes shareholder value.
Several other functions are as follows: Preparation of budget, appropriation of accounts, re-appropriations, surrender and savings. Control of expenditure and ways & means position Audit Treasury administration Administration of taxes i.e. Sales tax, Entertainment tax, Luxury tax and Entry tax etc. Service conditions including freedom fighters pensions.
Resource mobilization through loans, Institutional Finance, Small savings, Credit and Investment and public debt.
Financial concurrence and advice. Compilation of codes, rules and procedures concerning financial transactions and having bearing on state finance and their implementations.
Safety and investment of funds from consolidated funds, contingency fund and public account.
Contract recovery and refund of revenue etc.
5.6 Business Development Department
This department plays important strategic role in the company, because it can substantiate, initiate and support projects which may include all other departments and can improve company‟s performance. Business development department supports and guides companies strategic planning, influences short term and long term goal setting, and provides information for effective decision making in company management.
Objectives To enhance institutional sales progressively. Initiate co-branding activities to enhance the brand position of joyalukkas. Enhance customer relation and brand loyalty. Constant market analysis to ascertain market perception, change and competitiveness.
Job Profile of a Business Development Manager
Scan environment – formulate long term forecasts. Initiate measures to build up / improve relations new / existing customers. Organize and implement various promotional activities. Feedback to divisions.
Monitoring and compiling data on product performance. Systematic timely communication / feedback to division on:
Opportunities and threats in the environment. Competition Product
Roles and Responsibilities
The business development manager has the overall responsibility for the effectiveness of the department.
Customer complaint management system
Customer complaints are received through various channels: Showroom Customer feedback form (Customer feedback form can also be used as a channel for complaints ) Verbal Fax, E- mails At showroom level, the complaints are resolved by the showroom manager. All written complaints are recorded in the complaint feedback register by the customer relation executive. These complaints are attended immediately. The customer is given a call within 24 hours and a solution is found within 48 hours. The customer relation executive with the head of the concerned department finds solution to the complaint.
Serious issues are brought to the attention of the GM. The remedial actions are taken for each compliant recorded in the feedback register at the showroom. All complaints, the corrective and preventive actions taken shall be discussed during management review meeting.
A framed statement kept in each showroom encouraging customers to provide feedback through the customer feedback forms. A customer feedback form is kept at every outlet. The customer relationship executive is assigned the duty for collecting the customer suggestions who in turn gives his feedback to the manager for necessary action. The Customer Relations Executive analyses the feedback each week at the showroom. Complaints received by mail or fax or phone at the corporate office are directed to the concerned department and befitting solution is taken for the same.
5.7 Loyalty department
In today‟s world, customer service is paramount to success. Servicing it‟s most valued customers with attention and respect that they deserve can distinguish your products and services from the competition. The relationship marketing and effective CRM will bring customers back repeatedly, positively impact your bottom line and establish a strong team approach than you have ever known before. The goal, ultimately is to promote a “conversation” so satisfying for customers that it moves their attention off price and on to added value.
Loyalty and P romotion Programs
Golden Rewards Program:
This is a loyalty program of Joyalukkas company where the customer is offered a „smart card’ which offers the customer a wide range of benefits and privileges. To earn reward points, the customer presents the card at the time of purchase at any of Joyalukkas stores and receives points, which can later be redeemed by the customer, against future purchases at any of Joyalukkas stores. For every 10,000 points the customer will be eligible for a discount of ` 1,000.
B2B Program: „B2B Solutions‟ is a division of Joyalukkas company dedicated towards customized corporate sales. It began operations in July 2008. Joyalukkas maintain corporate tieups with certain key corporate customers as part of their b2B Solutions program, for providing loyalty and retention related services. Joyalukkas offer the customers or clients of their b2B corporate-partners, discount vouchers or options to earn loyalty points based on various loyalty programs including credit and debit card usage or purchasing merchandise at various identified outlets in India. Joyalukkas offer reward points against such purchases/usage in order to enable the customers to earn points from purchases at the program partners‟ outlets or stores and to redeem such points on purchase of jewellery or textile products at Joyalukkas retail outlets. Joyalukkas also offer certain customized gifting options for their corporate-partners, based on their requirements. B2B is aimed at corporate clientele and with a view of creating strong brand equity and increasing customer foot falls and revenues.
Annual Clearance Sales:
Joyalukkas periodically evaluate the stock position of the textile division of their company. Non- moving items or old stocks are identified and ear marked for discount sales. Joyalukkas typically hold discount sales once a year.
Easy Gold Plan: Joyalukkas easy gold plan enables the purchase of jewellery by a customer based on fixed monthly installment payments, starting from ` 500, for a specified period of time (12 or 18 or 24 months), for the purchase of gold or other jewellery products worth the total amount including a certain bonus from the Company, upon maturity of the plan at the then prevailing market price. Under the plan, purchase of 22 or 24 carat gold coins or bars is not permitted. Further, pre-payment of installments at one time and redemption (with bonus) thereafter on or before the indicated day of maturity is not allowed. Purchases can be made only after 30 days from the last installment paid under the plan. In case of default in payment of installments, the eligibility for purchase is proportionately reduced. Late payments are treated as defaults for that month and are taken into account in reducing the calculation of bonus under the plan. As per the plan, cash will not be refunded to the customer.
5.8 Information technology department
The management information services department provides a variety of services relating to computer and telecommunication services, application software development, design and production services and software training to all internal town client departments. The management information system serves as an internal reposting unit of the organization. The department is responsible to report in quantitative as well as qualitative terms and has an extensive database of the existing organization activities. The MIS department is an innovator in the field of
information technology management, using a management solution that maximize effectiveness and minimize cost. The MIS department also consults with other departments to select analyze and select proper IT solutions for specific applications, provide internet access, computer training and support and mobile computing solutions for town departments.
The top management is composed of the chairman, general manager and department heads. Top management responsibility includes: Setting quality policy
Establishment deployment and monitoring measurable quality objectives at relevant functions and levels within the organization. Ensuring availability of resources identified in the processes for implementation of QMS. Reviewing effectiveness of implementation and identifying area for improvement of the QMS once in every six months during the management review. effective
Top management‟s measurement for organization performance includes financial performance process performance and assessment of satisfaction level of customers and other interested parties and benchmarking.
Top management of Joyalukkas realizes that customer satisfaction is the ultimate goal; Customer satisfaction is an investment and will lead to growth of the organization. The showroom sales personnel are in the front- line with walk in customers. They are given appropriate training to ensure that the customer‟s are determined and fulfilled in all respects.
The marketing department identifies the general market perception about the organization and its products /services and plans promotion activities in order to promote organization and its products while creating the need in the market.
The chairman has appointed the General manager/HR/Internal Auditor as the management representative besides other representatives: 1. Ensure that processes of the QMS are established and maintain them on continual basis to meet the goals of the company‟s policy requirements and third party registration requirements. 2. Reports to top management on the performance of the QMS through periodic internal audit of the system as per annual audit schedule 3. Promote awareness of customer requirements and the market needs (during the meeting) throughout the organization based on feedback from the marketing manager.
The internal auditor/HR has been assigned as the QMS coordinator to assist the MR in the implementation and maintenance of the QMS.
Internal And External Communication
Top management realizes the usefulness of internal and external communication process to help the organization to achieve the quality objectives and participation of employees in best practices. A documented procedure is established for effective internal and external communication. Inte rnal communication includes:
Communication of policy, objectives and arrangements for implementation of QMS to employees.
Communication regarding the current bullion rates. Communication regarding service related legal and regulatory requirements. Communication of customer requirements by the purchase/marketing
manager/business development manager. Service and product related communication takes place via exchange of experience and internal meetings and in work groups. Employee suggestion scheme to nurture ideas of the employees for benefit of the organization. Press publications dealing with the organizations activities are circulated through notice boards, intranet and company website. Employee news letter. (will be developed).
External communication includes:
Company brochure and website providing information about the organizations activities.
Communication with regulatory bodies with updation regulatory requirements. Communication with legal authorizes in case of incidents and accidents.
Th top management once in six months (after every internal audit) reviews the QMS to ensure suitability adequacy and effectiveness of the system. The management review input include: Results of departmental objectives and budget review. Quality policy review. Results of the internal and third party audits. Customer feedback/complaits. Status of preventive and corrective actions taken for identified non conformities. Review of business growth and strategies. Changes to quality manangement system. Resource needs Follow- up actions from last management review.
The management review output considers actions related to improvement of the QMS and its processes improvement of the product/services related to customer requirements and resource needs for implementation of quality and management systems. The effectiveness of management review is measured in subsequent review meeting.Management representative is responsible and authorized to collect data, organize and schedule management review once in six months after internal audit. MR maintains records of the management review meetings.
The numerous processes of the company are classified into three categories; Core business process Support process Management process
The core business process of Joyalukkas are:
1) Purchase (jewellery textiles and services) 2) Showroom operations. 3) Marketing. The support process of joy Alukkas are: „ 1) Planning 2) Formulation of policy and objective. 3) Management review
Management process – planning, policy & objectives and management Review
C U S T O M E R
Marketing Definition of market requirement Customer feedback Promotional activities to create market need
Purchase Purchase of gold and diamond jewellery repair
Showroom operations Display of jewellery Sales of jewellery Sale of repair & services Purchase of old gold Exchange of old gold
C U S T O M E R S A T I S F A C T I O N
R E Q U I R E M E N
Support process – Resources management, IT, Monitoring & Measurement & Calibration
As of December 31, 2010, Joyalukkas had 22 retail stores in 21 cities in India, eight of which are situated in Kerala, eight in Tamil Nadu and one each in Puducherry, Bangalore, Mangalore, Hyderabad, Mumbai and Gurgaon. Further, out of our 22 retail stores, 10 are Large Format Stores each ha ving a floor area of 12,000 sq. ft. or more.
Joyalukkas three Premier Stores are the Large Format Stores situated in Chennai, Bangalore and Coimbatore, having an aggregate floor area of 96,309 sq. ft. Joyalukkas believe that the large format, luxury retail shopping experience and the inventory that these stores offer, enables us to attract customers to Joyalukkas product offerings.
Coimbatore Store -
Joyalukkas large Format Store situated in Coimbatore was the first retail store that Joyalukkas set up in Tamil Nadu, situated at Cross Cut Road in Coimbatore having an aggregate floor area of 12,565 sq. ft. The store started its operations on May 30, 2004. This is one of Joyalukkas large Format Stores in Coimbatore with ample car parking facility. As of December 31, 2010, Joyalukkas had 138 employees working in the Coimbatore store. The store has four levels, ground plus three floors. The ground floor sells generic gold and antique jewellery. The first floor is exclusively dedicated to jewellery made of diamond, platinum and other precious stones. The second floor comprises regular gold and silver jewellery. The store also has a prayer room, feeding room and restrooms for the convenience of Joyalukkas customers.
Chennai Store 73
Joyalukkas large Format Store situated in Chennai is known for its wide collection of jewellery, size of the store and its ambience. The store has five levels, having an aggregate floor area of 57,430 sq. ft. with an ample car parking facility. As of December 31, 2010, Joyalukkas had 190 employees working in the Chennai store. On the ground floor Joyalukkas sell generic 22 carat gold jewellery, while on the first floor Joyalukkas sell gold brands, gold watches, 24 carat gold statues, traditional gold jewellery and jewellery made from other precious stones. The second floor is exclusively dedicated to diamond and platinum jewellery. On the third floor Joyalukkas sell silver jewellery, gift articles, silver furniture and Joyalukkas have a VIP lounge and a unique diamond cave. Joyalukkas purchase division, regional office and B2B Solutions division are situated on the fourth floor. The diamond cave gives information to Joyalukkas interested customers on the history of diamonds including mining, cutting, polishing and designing of diamond jewellery. This is Joyalukkas largest jewellery retail store, in terms of store size, gold and diamond jewellery stock, car parking facility, number of staff and by quantity of Joyalukkas sales. Apart from these, there are facilities such as a feeding room, prayer rooms, and restrooms etc. to cater to the comfort of Joyalukkas customers. Further, Joyalukkas have won the „Best Single Retail Store of the Year‟ award for Joyalukkas chennai store at the National Jewellery Awards 2011 organized by the All India Gems and Jewellery Trade Federation.
Bangalore Store -
Joyalukkas large Format Store situated on M. G. Road, Bangalore is spread over an aggregate floor area of 26,314 sq. ft. Joyalukkas bangalore store was inaugurated on July 4, 2010. As of December 31, 2010, Joyalukkas had 150 employees working in the Bangalore store. The building has five levels with ample car parking facility. On the ground floor Joyalukkas sell generic antique, traditional and contemporary gold jewellery. The first floor features exclusive branded collections and jewellery made
from other precious stones. The second floor showcases diamond bridal sets and premium diamond sets. The third floor houses the Joyalukkas branded collections in pearls, diamonds and platinum. It also features a dedicated section for silver artifacts, utensils and jewellery. The store also has feeding rooms, prayer rooms and refreshment corners to cater to the comfort of Joyalukkas customers.
5.10 TOTAL QUALITY MANAGEMENT Quality management policy
The management of Joyalukkas India Pvt. Ltd hereby commits to enrich the quality the quality of life by offering innovative solutions backed by incomparable value additions, adhering to globally approved process and norms, and creating a win- win value chain with all our associates, which has in its ultimate objective, to achieve maximum customer satisfaction and to protect and improve the environment, health and safety of our employees, and preserve the interest of suppliers, customers and the community .
Joyalukkas recognizes that a commitment to the following policies is fundamental in implementing the above pledge:1) To procure and deliver jewellery and textile products and other related services to this customers at the highest standard meeting regulatory requirements whereby to achieve 100% customer satisfaction.
2) To develop and implement measures aimed at the preventon of pollution by reducing the generation of waste and properly disposing of waste and also to minimise use of hazardous materials and energy and other resources.
3) To comply with all requirement of all relevant legislations and regulations.
4) To establish and review objective from time to time and maintaining, reviewing and continually improving our quality management system according to the standards of ISO 9001:2000.
The top management has established quality management in line with company‟s overall business policy. The policy statement considers the following in line with the requirement of the standard:
a) Leadership position in jewellery industry. b) Customer satisfaction. c) Compliance to applicable regulatory requirements. d) Reliability of jewellery caratage (purity) to customers. e) Continual improvement. f) Continual development of skilled and dedicated staff. g) Contributions of suppliers. h) Stakes of stakeholders and society
The quality policy is reviewed every six months during the management review meeting by the top management to ensure that the policy is in line with the current corporate policies and goals,
The policy is exhibited in all the prominent viewing spaces at the corporate office.the policy are communicated to every staff within the organization.
To become the world leader in retail chain of jewellery and textiles business To provide maximum customer satisfaction. To motivate and strengthen the competencies of employees. To actively initiate social activities in order to fulfill Joyalukkas obligation to thr society and the environment in which the company operates. To achieve 100% environment friendly operations.
Objectives from the driving force of an organization. The top management of joyalukkas jewellery has set corporate objectives and department objectives.
The establishment and objectives are dependent on:
The customer and other interested parties requirements. Organizations image. Organization‟s growth perspective. Legal and regulatory requirements.
Corporate objectives are set by the top management to channel the growth of the organization as per the vision of the chairman. Departmental objectives and budget for the department are set by the GM and the departmental managers in line with the corporate objectives. These objectives are reviewed every six months by the GM and form one of the criterians for performance evaluation.
Objectives review is carried out by the GM every six months before/during the management review. This review is based on the data analysis of set parameters of the objectives.
A document procedure has been established to define the controls needed.
a) To approve review and update as necessary and re-approve documents prior to issue. b) To identify changes and ensure relevant versions of applicable documents are available at the point of use. c) To ensure that documents of external origin are identified and their distribution controlled and d) To prevent the unintended use of obsolete documents, and to apply suitable identification to them if they are retained for any purpose.
Control of records
A document procedure is established to define the controls needed for the identification, storage, protection, retrieval, retention time and disposition of records.
The list of records for all the documented processes is identified at the end of the procedures.
Quality management system (QMS)
The quality management system of Joyalukkas India Pvt. Ltd. Is devised as per the requirements of the ISO 9001:2000 standards and adopts a process approach in the design and documentation of the QMS. Process approach as defined in ISO 9001 is adopted while designing and documenting the quality management system.
6.1 SWOT Analysis
High quality and purity :The success and growth of Joyalukkas has been driven by its unstinging commitment to quality, a fact that has been widely recognized by its growing customer base. Distribution network and retailing stores :It has a wide netwrk of more than 23 showrooms across India. Competitive prices :Joyalukkas follows competitive pricing strategies and adheres to provide quality products at minimum cost. Brand Leverage :Joyalukkas is a well established top brand in jewllery retail sector in India. This brand name itself provides an additional leverage in their growth. ISO 9001 & 14001:Joyalukkas is awarded with ISO 9001 and 14001 for its quality in business processes and products and also for its strong environment concerns and programs.
There may be conflicts of interest between them and certain of their Promoter group companies. As the major raw material requirements need to be imported, companies normally stock huge quantities of inventory resulting high inventory carrying costs. Technology is less improved compared to C hina and Thailand‟s company.
New markets in Europe & Latin America. Growing demand in South Asian & Far East countries. Industry moving from a phase of consolidation. Expansion possibilities in lifestyle and luxury products in India like watches, leather goods, Platinum jewellery because increasing disposable income of people.
International Competition:-China, Sri Lanka and Thailand's entry in small diamond jewellery. Increase in the price of gold and diamonds. Other local competitors. According to the data 97% jewellery sales are by family jewelers. Threat from producing nation like S.A. & Russia
Joyalukkas believe that Joyalukkas primary competitive strengths include the following:
Large Format Stores and Wedding Centers at strategic locations
As of December 31, 2010, Joyalukkas had 22 retail stores in 21 cities in India, eight of which are situated in Kerala, eight in Tamil Nadu and one each in Puducherry, Bangalore, Mangalore, Hyderabad, Mumbai and Gurgaon. Further, out of our 22 retail stores, 10 are Large Format Stores each having a floor area of 12,000 sq. ft. or more. Joyalukkas three Premier Stores are the Large Format Stores situated in Chennai, Bangalore and Coimbatore, having an aggregate floor area of 96,309 sq. ft. As of September 30, 2010, Joyalukkas maintained an aggregate inventory of 690.46 kg of Gold at their three Premier Stores. This is in addition to the jewellery made of diamond and other precious stones, platinum and silver, all with an extensive array of designs. Joyalukkas store in Chennai has a floor area of 57,430 sq. ft. across five floors with 190 employees as of December 31, 2010. Joyalukkas store in Bangalore has a floor area of 26,314 sq. ft. across five floors with 150 employees as of December 31, 2010. Joyalukkas store in Coimbatore has a floor area of 12,565 sq. ft. across four floors with 138 employees as of December 31, 2010. Joyalukkas premier Stores with an aggregate floor area of 96,309 sq. ft. display a wide range of jewellery products at any given point in time. Joyalukkas large Format Stores enhance their efficiency as they require less managerial staff in proportion to the large inventory of jewellery products. Joyalukkas believe that their large Format Stores provide a luxury retail shopping experience, in addition to the inventory that these retail stores are able to offer, enables us to attract customers to Joyalukkas product offerings.
Of our 22 retail stores, Joyalukkas sell their textile products through four Wedding Centres situated in Kerala with an aggregate floor area of 104,617 sq. ft. Our Wedding Centres aim to offer an integrated shopping experience where Joyalukkas customers can purchase premium jewellery, premium festive clothing and accessories for weddings and other festive occasions in the same store. Further, our Wedding Centres cater to the textile requirements of the entire family, with its wide collection of men’s, ladies and children’s apparel. Joyalukkas believe that this is an innovative concept, which enables us to cross sell a wide range of their product offerings to their customers.
Strong track record and established brand equity with robust sales and marketing network
Joyalukkas prominent presence as a jewellery retailer in south India has been a result of Joyalukkas strong branding, our marketing efforts and a favorable response from Joyalukkas customer base. Joyalukkas have further strengthened Joyalukkas brand portfolio with the launch of internal brands aimed at different customer profiles, various markets and price segments and for various uses and occasions.
Joyalukkas have won several awards, including, the Best Single Retail Store of the Year 2011 Award for Joyalukkas chennai showroom and the Best Retail Jewellery Chain of the Year 2011 Award at the National Jewellery Awards 2011 instituted by the All India Gems and Jewellery Trade Federation. Joyalukkas have also won the Retail Chain of the Year 2010 Award at the Retail Jeweller India Awards 2010, instituted by the Retail Jeweller Group, Mumbai; first prize under gold category in Kerala Trade Awards 2010 instituted by the Government of Kerala; the Highest VAT Paying Jewellery Group Award in 2009 at the Kerala Gem and Jewellery Show, instituted by the Department of Industries and Commerce, the Government of Kerala; the Best T.V. Campaign and the Best 360 Degree Marketing Award in 2009 by the Retail Jeweller Magazine,
Mumbai; the Consumers Choice Award in 2008 by Retail Jeweller India in association with Dimexon; the JJS & Gold Souk Jeweller Award in 2007 by Jaipur Jewellery Show & Gold Souk; the Best Overseas Retailer, 2008 at the Kerala Gem and Jewellery Show, 2008 instituted by the Government of Kerala.
Joyalukkas marketing initiatives also include Joyalukkas customer loyalty programs such as golden rewards program, Business to Business Solutions („B2B Solutions‟), discount sales, easy gold schemes and others
In addition to Joyalukkas sales to a wide range of customers through Joyalukkas retail stores mostly spread throughout south India, Joyalukkas marketing initiatives include advertising through various media, such as, television, radio, newspapers and magazines, interactive website, hoardings and display, advertisements in cinema hall, bus terminals, railway stations and similar displays. Further, Joyalukkas shall continue to consult external agencies on the optimum allocation of Joyalukkas marketing resources by determining the appropriate media vehicle for reaching out to Joyalukkas retail customers. Joyalukkas also have a professionally composed jingle used for electronic advertisements and as caller ring tones. Joyalukkas believe that effective marketing is an important investment in future revenue growth, to improve Joyalukkas brand visibility, to establish relationships with target markets and to sell Joyalukkas products in a competitive cost-effective manner.
Use of efficient internal processes to leverage Joyalukkas sales
Joyalukkas rely on Joyalukkas internal processes for activities ranging from the procurement of bullion, finished jewellery and textile products, identification of craftsmen and jewellery suppliers, specifications and design, selection of store location, conduct constant market analysis to ascertain market perception, change and competitiveness, inventory management as well as activities like purity testing, hallmarking, bar coding, branding, packaging, store design and management.
Joyalukkas believe that Joyalukkas understanding of the jewellery, textile and apparel industry helps us in assessing market opportunities and positioning ourselves accordingly. Joyalukkas retail operations network are supported by Joyalukkas inventory management system that enables us to move Joyalukkas inventory to and from, and channel Joyalukkas sales through, Joyalukkas various retail stores depending on the relevant festive and other occasions and the demographic nature of Joyalukkas customers. Joyalukkas have evolved and continue to improve Joyalukkas internal processes which drive Joyalukkas business efficiency and profitability.
Joyalukkas believe that Joyalukkas effort to predict market expectations, in- house order projections, customer preferences towards specific stones and jewellery products enables us to undertake effective inventory management, ahead of Joyalukkas delivery schedule. Joyalukkas believe that Joyalukkas internal processes such as an effective Enterprise Resource Planning („ERP‟) system to manage finance and accounting, inventory of gold and other jewellery, internal and external resources, including tangible assets, human resources and financial resources, Joyalukkas internal audit systems, sales and distribution and extensive domain knowledge of Joyalukkas promoter and Key Managerial Personnel has substantially contributed to the growth of Joyalukkas business operations.
Corporate tie-ups with leading companies as part of Joyalukkas business to Business program
Joyalukkas maintain corporate tie- ups with certain key corporate clients through Joyalukkas b2B Solutions program for providing loyalty and retention related
services. For the customers or clients of Joyalukkas b2B Solutions, Joyalukkas offer discount vouchers or options to earn loyalty points based on various loyalty
programs. Joyalukkas offer reward points against such purchases/usage in order to enable the customers to earn points from purchases at the program partners‟ outlets or stores and to redeem such points on purchase of Joyalukkas jewellery or textile or apparel products at Joyalukkas retail outlets. For instance, Joyalukkas have entered into a similar agreement with a leading hotel group, offering its members the option to redeem their gift vouchers against the purchase of jewellery at Joyalukkas retail stores. Joyalukkas also offer certain customized gifting options for Joyalukkas corporate-partners, based on their requirements. Joyalukkas b2B Solutions aims at enhancing Joyalukkas corporate clientele and in turn a wide range of customers and also result in the creation of strong brand equity and increase Joyalukkas customer footfall and revenues. Joyalukkas have followed a structured approach for Joyalukkas product development which involves market research, sales analysis, brand development, media campaigns and promotions. Joyalukkas believe that this has helped us forge strong relationships with key corporate customers and gaining increased business through their customers/clients. Joyalukkas believe that Joyalukkas structured approach towards brand development through Joyalukkas b2B Solutions and Joyalukkas execution capabilities has enabled us to create long term relationships with leading corporate clients.
The Joyalukkas Group, owned by Mr Joy Alukkas, is focusing increasingly on B2B (business-to-business) projects and has already launched a variety of schemes to increase footfall to its stores. B2B accounts for less than 10 percent of total revenues, but Mr Venugopal believes it is a growing priority with great potential for futures sales. In one joint project with Cocoa Cola and McDonald‟s during the 2008 Olympics, Coca Cola encouraged people to redeem ring pulls from cans of Coke in return for a gift of one gm of
gold at a Joyalukkas store or a meal at McDonalds. Now, people can take stubs from flight tickets with Etihad, the United Arab Emirates‟ national airline, and get a 10 percent discount on diamond jewellery when they visit a Joyalukkas store. Unilever gives vouchers to employees who achieve targets on sales of products such as Lipton tea. The vouchers can be cashed in at Joyalukkas stores.
Joyalukkas also promotes an incentive programme with dealers at French glass company SaintGobain enabling them to cash in vouchers towards jewellery purchases at Joyalukkas stores. Joyalukkas is looking for opportunities for B2B projects to coincide with the 2012 London Olympics and has already met with leaders of the London Olympics organisation such as former athlete Sebastian Coe. Joyalukkas wishes to raise its profile in the UK market by adding a store in a London district such as Wembley or Southall where there are already well-established British Asian communities with a taste for 22-carat gold jewellery – and increasingly, diamond jewellery. Joyalukkas‟s Green Street shop in London belongs to the Green Street Jewellers‟ Association (GSJA), which is branding itself as a distinctive jewellery quarter before the 2012 Olympics. In Britain, Joyalukkas‟s contact for B2B projects is John Jacob, Marketing Manager The Joyalukkas Group, which has 3,000 employees in total, mainly in India, has assigned 25 people on B2B projects full- time in Dubai, its global headquarters, and a further 25 people working in B2B in India.
6.2 Corporate Social Responsibility
Joyalukkas Foundation is a public charitable trust created under the deed of declaration of trust dated August 12, 2009. It is a registered charitable trust under the provisions of the Income Tax Act. The objects of the trust include, among others, to give financial aid and assistance to establish, promote, set up, maintain and support the running of educational institutions, orphanages, schools and old age homes. Joyalukkas promoter Alukkas Varghese Joy and Joyalukkas promoter’s spouse Jolly Joy are the trustees of Joyalukkas Foundation. The employees of Joyalukkas company voluntarily contribute a fixed sum out of their monthly salary to the Joyalukkas Foundation and the Company also contributes towards the same. The fund is mainly utilized for the medical aid and treatment of needy patients. Joyalukkas company has also formed a blood donation forum amongst its employees which has organized blood donation camps. Joyalukkas company has also organized green campaigns with the objective of improving the environment.
The CSR activities of Joyalukkas can be briefed as follows: Mangalya mela, (101 couples) Eye donation camp Blood donation camp Amnesty flight (165 helpless Indian Residents brought back to home land from middle east) Snehalaya Old Age home, Thrissur Educational Donations (cancer patients and other major diseases) House construction for poor Sponsored candidates for their excellence in sports and other scientific areas. Marriage donations Donated 255,00,000 towards Tsunami Relief Fund Donation towards Gujarath Earth Quake Relief fund Issued cloths for attapadi tribals once in quarter „Think Green‟
CHAPTER VII FINDINGS AND CONCLUSION
The success and growth of Joyalukkas has been driven by its unstinting commitment to quality, a fact that has been widely recognized by its growing customer base Joyalukkas follows competitive pricing strategies and adheres to provide quality products at minimum cost. Joyalukkas is a well established top brand in jewllery retail sector in India. This brand name itself provides an additional leverage in their growth. .As the major raw material requirements need to be imported, companies normally stock huge quantities of inventory resulting high inventory carrying costs. Gold as a share of wallet is decreasing in the younger generation. Traditional jewellery is still the dominant design pattern while contemporary styles are emerging fast Although guarantee of the retailer is important in ascertaining quality, hallmarking is gaining acceptance In the past choice of stores used to be 1-2 stores, but customers now look at 45 stores for range and choice of jewellery The main occasions to buy are still marriage and festivals Customers in the high value category are becoming more informed because of exposure to media and fashion trends Joyalukkas is perceived as a highly Reliable brand. Joyalukkas emerges as the best known brand with the highest awareness and recall. Customer is shifting towards Branded Jewellery. The younger generation is looking for trendy, contemporary jewellery The Indian consumer is willing to experiment with new designs. The consumer wanted a wider selection at a single convenient location and expected an international shopping experience.
Joyalukkas has been hailed as the world’s favorite jeweller!!!
The registered office of joyalukkas (Indian operations) is situated at Marine Drive, Cochin, Kerala which is very attractive promenade on the side of Vembanad Lake. The global retail chain is presently having 81 showrooms. Joyalukkas jewelery aims at having 100 showrooms around the world by the end of 2011. It had a unique business model in the industry and is having strengths like value addition, branding, rapid expansion and focusing only on retail. Joywlukkas was the first jewellery retail to be awarded the prestigious ISO 9001:2008 and 14001:2004 certification. Joyalukkas is named retail chain of the year 2010 and is the first jeweller to win at the Kerala trade awards, a Government of Kerala initiative. Joyalukkas was recently was recently awarded the d istinction of being a „Superbrand‟ in the UAE. It is its unique business styles that made Joyalukkas the “World‟s Favorite Jeweller”. This organization study at Joyalukkas India Ltd., cochin, helped me to get an awareness of the fuctioning of the HR department, in the office and gave me an outlook of thr various modes of work being performed. The study has also helped me a real time exposure to corporate office functioning thus helping me to relate with the little theoretical knowledge which I had learned d uring my course. At last, I would like to extend my heartfelt thankfulness to everyone who were a part of my project and helped me to successfully complete this report, as this is important in partially fulfilling my Master Degree in Business Adminisstration.
TEXTBOOKS Human Resource Management, Eighth edition, Gary Dessler P. Subba Rao, Essentials of HUMAN RESOURCE AND MANAGEMENT RELA TI O N S , Hima la ya P ub lic a tio ns David A. Decenzo, PERSONNEL /HUMAN RESOURCE MANAGEMENT