Executive Summary of Part 2:

 Company Profile:-
Ramdev Jeweler is situated at Chikhli Abhay complex, beside city store. The Ramdev Jewellers was
started in the year 2009 with partnership. Main owner of the shop is Mrs. Arunaben Shah. Mainly
they purchased Gold & Silver from Mumbai and Rajkot.

 Product profile:-
Main Jewelry of the company is as follows:
 Chain
 Mangalsutra
 Rings
 Earrings
 Silver Ornaments
  Value chain Analysis for Gems & Jewelley Business:-

• Extarction of Gold • Planning of cut • Melting of goald • Customer Facing

• Extraction of • Cutting of • Setting Diamonds / • Marketing &
diamonds by pipe Diamonds Colored Gemstones Branding
mining / alluvial into gold
mining • Polishing of • Selling
• Polishing and
Diamonds
Finishing the final
jewelry product

 SWOT Analysis of Business:-

Strength Weakness
Unique designs and construction methods. Limited time and budget to market the shop to the
Strong relationships with suppliers as well as segmented target population.
galleries. The struggle to constantly create new designs.
The flexibility to provide custom pieces. The possible inability to meet demand due to the
small size of the shop.
Opportunity Threat
Expansion in retail outlet A decrease of availability of raw materials due to
Changing Fashion trends demand from other industries.
Seasonal market Tough competition in local market.

 Porter’s five force model with respect to Gujarat:

 Threat of new entrant:
o Threat of new entrant is high as it is not very difficult to set up a jewelry business. There are
not any restrictions over entrant as such.
o 100 percent FDI allowing
 Competition among rivalry:
o In Gujarat There are more than 3,00,000 Gems & Jewelry players across the country, with
majority being small players.
 Bargaining power of Buyer:
o Bargaining power in gold jewelry 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 and there in Gujarat State in
cities such as Surat, Ahmedabad, Palanpur, Bhavnagar, Valsad and Navsari.
 Bargaining power of Supplier:
o With negligible domestic production of gold and gemstones, Gujarat relies largely on imports.
Bargaining power of Indian industry enhanced by the fact that Gujarat is the largest consumer
of gold & silver. In rough diamonds, the major global suppliers have very few alternative
customers (cutting and polishing) for their cheaper range of roughs.
 Threat of Substitute:
o From historic times, gold has played a pivotal role in the Indian social fabric. Gold is valued in
Gujarat as a savings and investment vehicle and is the second preferred investment behind
bank deposits.

 Porter’s five forces model with respect to Poland:

 Threat of New Entrant:
o Threat of new entrant is low in Poland because the jewelry shop which were registered in
Poland all are closed so new entrant can easily enter for business.
o There are 11,500 jeweller's shops registered in Poland.
 Competition Among Riverly:
o Competition in the Poland in jewelry sector is low because all the registered shop of jewelry
is close.
o The leading five chains control 50 percent of the jewelry market in Poland.
 Bargaining power of Buyer:
o Consumers spend a lot of money for social occasions such as christenings, communions,
engagements and weddings, of which a substantial amount goes towards jewelry.
 Bargaining Power of Supplier:
o Bargaining power of supplier is high because striped flint is becoming Polish export
merchandise. Jewelry made from the striped flint is now a Polish hallmark.
 Threat of Substitution:
o Threat of substitute is high because Polish jewelry is mainly associated with amber and silver.
o Poland is also a major producer of amber and a sole exporter of striped flint.
 Brief about selected product
1. Natural Emerald (Panna) Gemstone:- Satyamani Certified Natural Emerald Gemstone. Strengthens
Mercury (Buddh) which is a benefic planet. It gives its wearer Intelligence, Wit, and Quick Learning
Ability. It is also beneficial for business and trade, especially those which are related to
communication, conveyance, connections, and networks.
2. Natural Turquoise (Firoza):- Satyamani Turquoise Certified Gemstone. They speak out what they
feel right, without considering how others will react such statements. Turquoise Gemstone is the
symbol of Spirituality. It also brings peace to its wearer. It neutralizes over acidity, Alleviates
rheumatism, gout, stomach problems and viral infections.
3. Imitation (Zircon) Gemstone:- Satyamani Certified Natural Imitation Crystal (Zircon) Gemstone has
strong vibration and metaphysical properties, which brings calmness in body and mind. It has
powerful vibration transmitter that corrects imbalances and brings recognition of one's true self. It
releases mental blockages and negative thought patterns, which makes it is an effective personal
power crystal.
4. Natural Ruby (Manik) Gemstone:- Satyamani Certified Natural Ruby Gemstone (Manik). The Ruby
is considered to be the most powerful gem and is associated with many astral signs. To own a ruby
is said to have contentment and peace. It also helps sexual love to be more passionate.
5. Natural Yellow Sapphire Gemstone:- Satyamani Natural Yellow Sapphire or Pukhraj stone brings
wealth, status, respect and prosperity to its wearer. It is highly beneficial for people in
administrative, judicial, management and top level influential jobs.
6. Natural Blue Sapphire / Neelam Gemstone:- Satyamani Natural Blue Sapphire Gemstone helps you
extract the maximum out of every favorable situation. It sends fortune, luck and auspicious
situations to your way. It is extremely beneficial for business and trade. If Blue Sapphire suits you,
then it will shower riches and prosperity in your life.

 Justification for importing exporting & trading in Gems &Jewelry.

 Robust growth in export
o The overall net exports of gems and Jewelry stood at US$ 35.59 billion during FY2016-17
registering a growth of 9.07 per cent over FY 2015-16.
 Attractive Opportunities
o The Indian middle class is expected to rise to 547 million by 2025 and this rise of young Indian
middle class worker is expected to lead to an increase in demand for gold.
 Customized Jewelry
o Companies have also started selling customized Jewelry for customers who prefer to have their
Jewelry altered as per their own preference; for example Malabar Gold.
 Online selling by gems and Jewelry retailers
o Majority of the players in the Indian market have started selling Jewelry online; for example
Malabar Gold, Tanishq, Tribhovandas Bhimji Zaveri, PC Jeweller, etc.
 Expansion and opening of exclusive showrooms
o Companies are indulging in expansion to more and more cities as well as expanding across the
value chain. Retailers are focusing on opening exclusive showrooms especially in Tier I cities to
attract the urban customers.
 Government Initiatives
o The Government of India would notify a new limit for reporting about transactions in gold and
other precious metals and stones to authorities, to avoid the parking of black money in bullion.
 Investment/Development
o The cumulative Foreign Direct Investment (FDI) inflows in diamond and gold ornaments in the
period April 2000 - September 2017 were US$ 1,045.58 million, according to Department of
Industrial Policy and Promotion (DIPP).

 Import/Export Policies & procedures for Gems & Jewelry with respect to Gujarat and Poland:
 Export Norms Of Gujarat
1) Registration Stage :
a. Registration of organization
b. Opening Bank Account
c. Registration for IEC number
d. Obtaining Permanent Account Number (PAN)
e. Obtaining Sales tax number
f. Registration with Export Promotion Council (EPC)
2) Pre-Shipment Stage :
a. Approaching Foreign Buyers
b. Inquiry and order
c. Confirmation of order
d. Opening letter of credit
e. Arrangement of pre-shipment finance
f. Production or Procurement of Goods
g. Packaging and Marking
h. Pre shipment inspection
i. Obtaining insurance cover
j. Appointment of C&F Agent
 3) Shipment Stage :
a. Reservation of shipping space
b. Arrangement of Internal Transportation up to the Port of Shipment
c. Preparation and Processing of Shipment Documents
d. Custom clearance
e. Obtaining ‘Carting Order’ from the Port Trust Authorities
f. Obtaining Mate’s Receipt and Bill of Lading
4) Post-Shipment Stage :
a. Submission of Documents by the C&F Agent to the Exporter
b. Shipment Advice to Importer
c. Presentation of Documents to Bank for Negotiation
d. Dispatch of document
Procedure to be followed for Import/Export:
o Bank Account
o Income tax permanent number
o Import export code number
o Registration Cum Membership Certificate (RCMC):
o Enrollment number
o Identity card
o Profile of import export
o Export / Import of Rough Diamonds with KPCS:
o Export through Exhibitions/Export Promotion tours/Export of Branded Jewellery
o RBI Policy for Export

 Mandatory Document Require for Import/Export:

MANDATORY DOCUMENTS LISTED BY WORLD BANK IN
DOING BUSINESS REPORT 2015
S. No. EXPORTS IMPORTS

1 Shipping Bill Bill of Entry

2 Commercial Invoice Commercial invoice
3 Packing List Packing List
4 Bill of Lading Bill of Lading

5 Foreign Foreign Exchange Control

Exchange Control Form Form (Form A-1)
(SDF)
 6 Terminal Handling Terminal Handling Receipt
Receipt
7 Technical Standard Certified Engineer's
Certificate Report
8 Cargo Release Order

9 Product manual

10 Inspection report

 Mode of enter in foreign market:

Joint ventures are a common form of business in Poland. Many U.S. businesses in Poland have
established joint ventures with Polish partner companies. Joint ventures are an excellent way to
facilitate export sales to the Polish market. Most joint ventures are established with the American
partner contributing needed capital and technology.
The Polish partner typically contributes land, distribution channels, trained workers, access to the
Polish market and introductions within the local government and business community. Having a
Polish partner who is familiar with the industry and culture gives American firms a competitive edge
they may not have on their own. American firms participating in joint ventures are often asked to
provide marketing, training, and promotional support for their Polish partners. Licensing products,
technology, technical data, and services has been less common in Poland, due to concerns about to
protect intellectual property rights and copyrights. Still we suggest U.S. businesses be cautious when
licensing their products in Poland, particularly since we expect the number of U.S. firms opting to
license their products in Poland to increase, especially in the industrial manufacturing and consumer
goods sectors.
 Supporting Institutes to facilitate export/import:
1. Trade fair authority of India
2. Export import bank of India
3. Export credit guarantee corporation
4. Export promotion council
5. Export inspection council
6. Indian institute of packaging

 Supply chain Model:

 Segmentation, Targeting and Positioning Strategy for Gems and Jewelry Market:
 Segmentation:
In demographic men and women both will segment. In psychographic middle class and upper class
will segment. In geographic urban area will segment.
 Targeting:
There are several products available in different price rage. Mainly focus on price for targeting. The
mainly classify as Higher, Middle and lower income group.
 Positioning:
Company is positioning on design of the product and usage of the product and also positioning on
target income group.
 4 P’s of marketing for Gems and Jewelry market:
Product: Company will offer six different type of gemstones in reasonable price. Namely Natural
Emerald (panna) gemstone, Natural Turquoise(Firoza), Imitation(Zircon) gemstone, Natural Ruby
(Manik) gemstone, Natural yellow sapphire gemstone, Natural blue sapphire.
Price: Price of the product will be as follow:
Products Price (In Rs)
Natural Emerald (panna) gemstone 12,850
Natural Turquoise(Firoza) 4,466
Imitation(Zircon) gemstone 3,361
Natural Ruby (Manik) gemstone 2,200
Natural yellow sapphire gemstone 10,309
Natural blue sapphire 7,100
 Place: Company will import the gemstones from the satyamani group which is situated at Jammu and
Kashmir then export this gemstones to the whiteflash jeweler which is situated in Poland and then
the product is available to the final consumer.
Promotion: The company will offer free gift if the purchasing ratio is high of gemstones. Company
will use digital platform for promoting like Facebook and Instagram as the users of these two
platforms is in increasing pattern in Poland. Company also will doing advertising in online magazine
and going in international trade fair.

 Integrated Marketing Communication

1. Internet Advertising:-
Company will using integrated marketing communication tools like internet advertising. In that they use
facebook, website and online/offline newspaper.
2. Sales Promotion:-
The objective of this method will be targeting more customers in the initial phase of the international
business.
CRM Strategy
Strategic CRM: Customer Retention Strategy will be used as company will gather trend information on
new style in gems and jewelry of Poland timely and come up with new designs as per the requirements.
Operational CRM: Customer Retention Strategy in which company will allow its customers to get the
details of the products with specification within seconds. For this, company will use Zoho software which
will cost Rs 2,100 for becoming premium user and Rs 2,880 for getting storage of 5 GB per year.
Therefore, total cost of software will Rs 4, 980 per year.
Analytical CRM: A bottom up perspective which focus on intelligent mining of customer data for strategic
and tactical purpose.
Break Even Analysis:
The total VC is at first year Rs. 66,000. The total FC is Rs. 1,34,000. So the BEP is 1.76 it means 2 units
approximate.
Projected Profit & Loss Accounts:
The sales of the first year is Rs. 11,30,904. Total expense is Rs.2,00,000. So total profit after tax of the
company is Rs.8,75,66. Thus the NP ratio is 77.43%.
Projected Balance sheet:
The capital of the company for first year is Rs.1,20,000. Total liability of the company is Rs. 13,00,000.
The investment is Rs. 5,00,000. The total current assets is Rs. 39,000. Thus the total assets is Rs.
13,00,000.
The company has unique designs of product and unique construction methods of producing jewelry. They
have also wide varieties of product.The company has strong relationships with suppliers as well as
galleries. They believe in long term relationship. So they try to maintain long lasting relation with existing
Suppliers.The Company has flexibility to provide customize pieces of service. This is a strongest strength
of the company as compare to their competitor.

The company will plan to expand their business near chikhli and nearby area due to increase demand of
jewelry. So they expand their retail outlet. Today the Fashion trends change very fast and to fulfill the
need of customer company provide customizes jewelry product and attract new customers.In season like
festival, wedding, engagement and etc. the jewelry demand is pick and the company well manage that
demand and fulfill the needs of their customer.

India is one of the largest exporters of gems and Jewelry and the industry is considered to play a vital role
in the Indian economy as it contributes a major chunk to the total foreign reserves of the country. In
Poland, the existing rivalry is low and new entrant is high so there is a more opportunity to enter the
jewelry market and achieve more market share. Net exports of gems and Jewelry from India rose at a
compound annual growth rate (CAGR) of 7.01 percent between FY05 and FY17 it means huge demand
jewelry in foreign market.

India’s exports of cut and polished diamonds rose from US$ 11.16 billion in FY 2004-05 to US$ 22.78
billion in FY 2016-17, thereby registering a compound annual growth rate (CAGR) of 6.13 per cent. The
cumulative Foreign Direct Investment (FDI) inflows in diamond and gold ornaments in the period April
2000 - September 2017 were US$ 1,045.58 million, according to Department of Industrial Policy and
Promotion (DIPP). An international diamond exchange will be set up in Surat by October 2020 at a cost
of Rs 2,400 crore (US$ 372million).

US, Hong Kong and UAE accounted for 75 per cent of the total gems and Jewelry exports from India
during FY 2016-17. Majority of the players in the Indian market have started selling Jewelry online; for
example Malabar Gold, Tanishq, Tribhovandas Bhimji Zaveri, PC Jeweller, etc. The company will plan to
expand business so they enter in international market through joint venture.

A major joint venture advantage is that it can help your business grow faster, increase productivity and
generate greater profits. Benefits of joint ventures include: access to new markets and distribution
networks. Joint ventures can be flexible. For example, a joint venture can have a limited life span and
only cover part of what you do, thus limiting both your commitment and the business' exposure.
International joint ventures are very common nowadays. This is a great opportunity to cooperate with
people from different countries and combine their strengths.

Many supporting institute like EXIM Bank, Export promotion council, export inspection council, export
credit Guarantee Corporation also help to company for doing international business. The segmentation
in demographic is men and women. In psychographic middle class and upper class will segment. In
geographic urban area will segment. There are several products available in different price rage. Mainly
focus on price for targeting. The mainly classify as higher, middle and lower income group.
The positioning on design of the product and usage of the product and also positioning on target income
group. Facebook- Advertising of Facebook will be done for targeting larger audience and the cost of
advertising is $3.99 (Rs 271) for Cost Per Mille (fee which has to be paid when advertisement is viewed
by 1000 persons or viewed for 1000 times) and $0.19 (Rs 13) for Cost Per Click. The total cost will be
$4.18 (Rs 284).

Customer Retention Strategy in which company will allow its customers to get the details of the products
with specification within seconds. For this, company will use Zoho software which will cost Rs 2,100 for
becoming premium user and Rs 2,880 for getting storage of 5 GB per year. The total profit of the company
at first year is Rs. 8,75,668. So the opportunity is high in Poland for gemstone business.

Limited time and budget to market thus the shop have not to reach the mass demand of the segmented
target population so they have to increase budget and target more population. There are many local and
small players in market. So company faces a tough competition. To overcome the competition company
has to develop their USP and attract new customer. A decrease of availability of raw materials due to
demand from other industries so it is advice to company that they have create more contact with supplier
and make long term relationship with them.

The possible inability to meet demand due to the small size of the shop so company have to develop new
store chain or increase the size of the shop.The company faces many problems to create a new product
design for fulfilling customer’s demand. So company can utilize technology for creating new design and
develop new product. Company which belongs to Chikhli are not having much marketing person to make
aware of their product to the new and existing customer toward new product and so that company is
appointing new employees for this work. The company have maintain long relationship with customer as
well as supplier so they can develop CRM activities to maintain long relation.Company want to enter in
international business so they would plan to joint venture with the Poland jewellery shop. Joint ventures
are a common form of business in Poland. Many U.S. businesses in Poland have established joint ventures
with Polish partner companies. Joint ventures are an excellent way to facilitate export sales to the Polish
market.

The company want to enter in international market for that they want to diversify their business from
jewellery to gemstone. For that the company import the gemstone from satyamani group which is
situated at Jammu & Kashmir to Gujarat and then they export the gemstone to Poland.

Company will segment in demographic men and women both will segment. In psychographic middle class
and upper class will segment. In geographic urban area will segment. There are several products available
in different price rage. Mainly focus on price for targeting. The mainly classify as lower income group,
middle income group and higher income group. Company will position on design of the product and
usage of the product and also positioning on target income group.

Customers of jewelry showrooms and art galleries in Poland can be divided into two groups. On the one
hand, they are young, well-paid women who tend to be residents of large cities. They look for jewelry
that will allow them to apparent their style and emphasize their personality. Then there are prosperous
people over forty, who treat jewelry as an investment and also as an opportunity to emphasize their
financial status. This group also includes a slowly increasing number of men who are interested in buying
men’s jewelry. Most often, they choose the valuables bearing logos of well-known jewelry brands.

The second group includes first of all the customers who are interested in buying wedding jewelry – the
engagement and wedding rings. They spend a lot of money to buy jewelry – they spend more than PLN
1,000 on their purchases.

Company will use one level distribution channel for its international business. Although company will
have its own website and CRM software for managing the activities of export-import but for ensuring the
potential customers attraction they will joint venture with the Polish jeweller shop. This is necessary for
getting customers for the company for it has established its business in Poland for long term with positive
brand equity.

Products supplied to Poland will consists of 6 types of gemstones designs namely Natural Emerald
(panna) gemstone, Natural Turquoise(Firoza), Imitation(Zircon) gemstone, Natural Ruby (Manik)
gemstone, Natural yellow sapphire gemstone, Natural blue sapphire. The pricing strategy which the
company is adapting is the Markup pricing strategy it means the company will set prices on the basis of
cost plus pricing.
Company will import the gemstones from the satyamani group which is situated at
Jammu and Kashmir then export this gemstones to the white flash jeweler which
is situated in Poland and then the product is available to the final consumer.

Company will use digital platform for promoting like Facebook and Instagram as
the users of these two platforms is in increasing pattern in Poland. And the
company would also do the advertising through the best online magazine for
attracting new segments of customers including the jewelry sector of Poland and
company will also doing trade fair in international market.

Poland is a very homogeneous country, with 96.7% of population being Polish. In

Poland 70% of the world sales market of Baltic amber products belongs to Poland.
In Poland, they have unique designs in jewelry and there were a modern trends,
long tradition and rich experience, attention to details, high quality and they have
latest production technologies for poducing a jewel. Consumers spend a lot of
money for social occasions of which a substantial amount goes towards jewelry.
Engagement rings tend to include precious stones, notably diamonds.

From the last few years, In Poland the jewelry shops are closed. In 2015, 2200
jewelry shops are shut down. So for the new entrant can easily enter in this sector
and earn more money. The first year profit of the company is Rs. 8,75,668. It’s a
sign that there were a huge opportunity in jewelry business.