Abstract

CoMany kings, emperors and dynasties featuring countless wars, conquests and political upheavals have
ruled the Indian sub-continent. Different dynasties ruled different parts of India with different monetary
systems. Jewellery acted as a common medium of exchange or store of value across the monetary
systems of different kingdoms across the sub-continent especially gold.

Hence wealth could still be preserved in spite of wars and political turbulence. Gold also helped
preserve wealth through natural calamities and disasters and for centuries was the only means of
saving in rural India , land being the other main asset of economic value. This has largely helped
formulate, or evolve, the Indian sentiment and fanatical passion for gold, which holds true even
today. India is estimated to hold more than 11,000 tonnes of gold.

Apart from its historical religious significance, Jewellery is valued as an important savings and
investment vehicle in India . Even in present times, Jewellery remains the Indian bride's
`Streedhan', the wealth she takes with her when she marries and which remains hers. Gold
jewellery is the preferred jewellery worn by women in India irrespective of their religious beliefs.
In marriages, gold jewellery is the gift preferred by the near relatives of the bride and the groom.
Jewellery is very popular among farmers, with an upsurge in gold sales after a good agricultural
season. Buying of gold is an important part of every stage of an Indian citizen's life- at birth,
marriage, construction of home, festivals, religious ceremonies, setting up of new business, and
death.

As India makes rapid progress in the retail arena, the Indian Jewellery market is undergoing a
gradual metamorphosis from unorganised to organised formats. The jewellery business in India
is estimated to be at Rs 50,000 crore. According to the independent estimation studies
conducted by World Gold Council and McKinsey, out of the overall market share, the share of
organised jewellery market is less than Rs 1,000 crore. This accounts to about 2-3 per cent of
the total market share. But given that this is a relatively new segment of the market, it is poised to
grow. Jewellery retailing is moving from a 'storehouse of value' to a precious fashion accessory.
Plain gold is gradually easing its stranglehold on the Indian consumer psyche to give way to
diamonds, platinum and coloured gemstones. The way jewellery was worn before is undergoing
a tremendous change.

Objectives of the Study

The objective to study the " A comparative study on the consumer's preference among Branded
and non branded jewellery" is to find out:
1) To compare between the consumer preference among the branded and non branded
jewellery.

2) To know consumer perception towards jewellery.

3) Brand awareness of various brands in the jewelery market.
4) To have an idea about the parameters the consumers consider while buying jewellery. The
scope of study is limited due to the following reasons:
1) Time constraint - since the time span for the study was only one month, an in depth study and
analysis will become a little difficult

2) Sample size - the sample size of the study is only 100 which would not give a comprehensive
result. Many important samples may not be considered at all. The conclusion of the study may
not result to an accurate outcome due to the sample size being small.
4) Awareness - the sample taken and the conclusion drawn can be led to only one side if there is
lack of awareness about branded jewellery. Significance of the Study
The gems and jewellery industry occupies an important position in the Indian economy and is
one of the fastest growing industries in the country.

Hence the research conducted would help us to:

1) Understand the consumers preference while purchasing jewellery.
2) How much impact does a brand/ retailer has on their purchase decision.
3) Does price play an important role in guiding their purchase decision.
4) Are the various promotional strategies adopted to combat competition. Consumer Buying
Behaviour While Buying Jewellery
While buying a product, consumer displays different kinds of behaviours towards different kinds
of products from a tube of toothpaste to a new car. More complex decisions usually involve more
buying participants and more buyer deliberation.
While buying an expensive product for jewellery, which satisfies a consumer's self esteem
needs( according to the Maslow's heirarchy of needs) a consumer displays complex buying
behaviour. Consumers undertake complex buying behaviour when they are highly involved in a
purchase and perceive significant differences among brands. Consumers may be highly involved
when the product is expensive, risky, purchased infrequently, and highly self expressive.
This buyer will pass through a learning process, first developing belief about the product, then
attitudes, and then making a thoughtful purchase choice. Marketers of high involvement products
must understand the information gathering and evaluation behaviour pf high involvement
consumer, they need to hellp buyers learn about the product- class attributes and their relative
importance.

Exports
After making its mark in the world diamond processing industry, India is well on its way to
becoming the leading global gems and jewellery hub. India 's gems and jewellery industry is now
on a high growth trajectory.
Exports from the industry fetched US$ 17.1 billion in 2006-07 against US$ 16.64 billionin 2005-
06, showing a growth of 26 per cent. While diamonds accounted for 64 percent of the total
exports, gold jewellery accounted for 30.47 per cent, colored gem stones andothers accounted
for 1.44 per cent and 1.04 per cent respectively last year.
Cut and polished diamond segment exports were US$ 10.90 billion, while gold jewellery exports
fetched US$ 5.21 billion last year. Coloured gemstone exports yielded US$ 246.48 million last
fiscal, against US$ 232.35 million in 2005-06.

The growth momentum has continued into the current fiscal. The gems and jewellery export
industry grew by a robust 27 per cent export during the first half of the current fiscal at US$ 9.4
billion, as compared to US$ 7.4 billion in the corresponding period of 2006, according to the
Gems and Jewellery Export Promotion Council (GJEPC).

The growth in diamond exports was 28 per cent, in jewellery it was 21 per cent and in coloured
gemstones, it was 22 per cent. The major destinations for exports have been the US , UAE,
Hong Kong , Belgium and Israel . In fact, the US , UAE and Hong Kong together accounted for
over 70 per cent of the total exports in the previous fiscal year.

Reference :
www.google.com
www.indiandata.com
www.valuenotes.com
www.wikipedia.org
www.seminarsonly.com

Rural Marketing Project

Abstract
In our country over 70% of the total population live in villages. There are states like U.P, M.P, Bihar,
Rajasthan and Orissa where rural population varies form 80 to 90 per cent. Agriculture and
agriculture related activities contribute to about 75% of the income in rural areas.

The general impression is that the rural markets have potential only for agricultural inputs like seeds,
fertilizers and pesticides, cattle feed and agricultural machinery. More than 50% of the national
income is generated in rural India and there are opportunities to market modern goods and services
in rural areas and also market agricultural products in urban areas. Infact it has been estimated that
the rural markets are growing at fives times the rate of urban markets.

About 70% of bicycles, mechanical watches and radios and about 60% of batteries, sewing machine
and table fans are sold in rural India. At the same time the sales of colour television, washing
machines, refrigerators, shampoos, face cream, mosquito repellent and tooth paste are very low and
there is tremendous potential for such products in rural markets

While rural markets offer big attractions to the marketers, it is not easy to enter the market and take
a sizeable share of the market within a short period. This is due to low literacy, low income, seasonal
demand and problems with regards to transportation, communication and distribution channel.
Further there are different groups based on religion, caste, education, income and age. There is a
need to understand the rural markets in terms of buyer behaviour, attitudes, beliefs and aspirations
of people. Characteristics of Rural Markets

• Large number of consumers:

According to the 1991 census, the rural population constitutes about 74% of the total population in
our country. While the population went from 55 crores (1971) to 85 crores (1991), the rural-urban
proportion have remained more or less the same as in 1971. There are states like U.P, M.P, Bihar,
Rajasthan and Orissa where rural population varies from 80 to 90 percent. Therefore a large
population gives an opportunity for marketing a variety of goods and services. However income and
purchasing power play a major role in determining the demand in rural areas.

• Occupation pattern:
Agriculture and related activities continue to be the main occupation for majority of the rural
population. Land is the major source of income for about 77% of the population. Others are engaged
in business (10%), non-agriculture labour (9%), salary earners (2%) and not gainfully employed (2%).
It is evident that rural prosperity depends upon growth and development of agriculture.

• Literacy level:
It has been estimated that the rural literacy level is 36% compared to 62% in urban areas. Literacy is
one of the important factors in developing awareness and knowledge about technological changes.
As many as 16 major languages are spoken adding to the complexities in rural communication.

• Low standard of living:

Low income, low purchasing power, overall social and economic backwardness lead to low standard
of living. In general a rural consumer spends less on non-food items.

• Media reach:
The media reach in rural household is low. Statistics indicates that the reach of Print media is 10%,
followed by TV 31%, Radio 32% and Cinema 36%. Therefore the marketer has to consider rural
specific promotion media and methods to reach the villagers.

• Communication facilities:
About 20% of the six lakh villages are without telephone facility even today. This includes Rajasthan
(17600 villages), MP (14200 villages), Maharashtra (12000 villages), Gujarat (7000 villages), and AP,
Assam, Orissa about 6000 villages each. (Source: The Indian Express dated 30.3.2003).

• Transportation facilities:
About 50% of the markets are not connected by road. Most of the roads are kachha and become
unusable during rainy season. Many farmers use bullock cart for transporting their produce from
village to the market. This means of transport is time consuming.

• Rural electrification:
The main objective is to provide electricity for agricultural operations and for small industries in rural
areas. About 5 lakh villages (77%) have electric supply and this has increased the demand for electric
supply and this has increased the demand for electric motors, pumps and agricultural machinery.

• Medical facilities:
Medical facilities are quite inadequate and the villagers have to travel long distances for getting
medical treatment.

• Distance:
Village nearer to towns has elements of the urban life. Interior villages are more traditional.
Informal/Rural Specific Media

These media with effective reach and personalized communication will help in realizing the
promotional objectives. Companies to suit the specific requirements of rural communication are
using a variety of such media effectively and some of the more important media and methods are
given below.

• Farm-to-Farm/House-to-House visit:
Rural people prefer face-to-face communication and farm visits facilitate two-way communication.
The advantage is that the sales person can understand the needs and wants of the rural customer by
directly discussing with him and answer his queries on products and services. Potential customers in
the village are identified and the company's/distributor's representative makes farm-to-farm visits
and highlight the benefits of the products. The person carries with him literature in local language
and also samples of products.

The person does not sell the product but only promotes the use of the product. Very often the local
dealer also joins the representative in making farm-to-farm visits. The dealer clarifies the terms and
conditions of sale and also makes independent follow up visits for securing orders. Example: This
approach has been found to be very effective for agricultural machinery, animal health products and
agricultural inputs. Many LIC agents and companies dealing with high value consumer durables have
tried this method with success in rich rural areas.

• Group meeting:
Group meetings of rural customers as well as prospects are an important part of interpersonal
media. The company is able to pass on the message regarding benefits of the products to a large
number of customers through such meetings. Group meeting of key customers are conducted by
banks, agricultural inputs and machinery companies in rural areas. The bankers visit an identified
village, get the village people in a common place and explain the various schemes to the villagers.
Such meetings could be organized in prosperous villages for promoting consumer durables and two
wheelers also. Example: MRF Tyres conduct tractor owners meet in villages to discuss repairs and
maintenance of tractors.

• Opinion leaders:
Villagers place more emphasis on the experience of others who have used a product/brand to make
purchase decision. Opinion leader is a person who is considered to be knowledgeable and is
consulted by others and his advice is normally followed. Such opinion leaders could be big landlords,
bank official, panchayath-president, teachers, extension workers etc. Examples: a) Mahindra
Tractors use bankers as opinion leaders for their product. b) Asian Paints promoted its Utsav brand
of paint by painting the village Sarpanch's house a few months prior to the launch if the branch to
demonstrate that the paint does not peel off.

• The Melas:
Melas are of different types i.e. commodity fairs, cattle fairs and religious fairs and may be held only
for a day or may extend over a week. Many companies have come out with creative ideas for
participating in such melas. Examples: a) Britannia promotes Tiger Brand Biscuits through melas. b)
The mahakumbh at Allahabad is the biggest mela in India. HLL has put up 14 stalls in the mela
grounds for promoting Lifebuoy. Handcarts have been deployed for increasing access.

• The Haats:
Traditionally on certain days of week, both the sellers and buyers meet in the village to buy and sell
goods and services. These are the haats that are being held regularly in all rural areas. The sellers
arrive in the morning in the haat and remain till late in the evening. Next day they move to another
haat. The reason being that in villages the wages are paid on weekly basis and haat is conducted on
the day when the villages get their wages. For the marketer, the haat can be an ideal platform for
advertising and selling of goods. By participating in haats and melas, the company can not only
promote and sell the products but also understand the shared values, beliefs and perceptions of
rural customers that influence his buying behaviour.

• Folk dances:
These are well-appreciated form of entertainment available to the village people. The folk dance
"Kuravan Kurathi" is popular in Tamil Nadu. The troupe consists of dancers, drummers and musicians
and they move in a well-decorated van from one village to another village singing and dancing. In a
day the troupe covers about 8-10 villages. As soon as the van reaches a village, film songs are played
to attract the attention of the villages. This is followed by folk dances. Mike announcement is made
about the company's products and leaflets are distributed. After the dance programme, queries, if
any, about the products are answered by the sales person. Folk dance programme costs about
Rs.5000 per day and therefore these programmes are conducted during the peak season in selected
villages. Examples: Fertilizer and pesticide companies organize folk dance programmes during peak
season in selected markets. Thumps Up has sponsored Lavnis, the folk dance programme of
Maharashtra and over 30 programmes have been arranged in selected rural markets.

• Audio Visual Publicity Vans (AVP Vans):

AV unit is one of the effective tools for rural communication. The van is a mobile promotion station
having facilities for screening films slides and mike publicity. The sales person makes a brief talk
about situation in the village, the products and the benefits. The ad film is screened along with some
popular film shots and this continues for about 30 minutes. At the end of the film show, he
distributes handbills and answers queries of the customers. The whole operation takes about 1-2
hours depending upon the products under promotion, number of participants in the meeting and
time taken for question and answers. The vans move to the next village for the second show. The
cost of running a fully equipped AVP unit is about Rs.4000 per day and AVP van operation has to be
considered as an investment for business development in rural areas. Example: Companies such as
HLL, Colgate, and Phillips have made effective use of AVP vans for popularizing their products in rural
areas.

• Product display contests:

Package is an integral part of the product. Its main purpose is to protect the product during transit,
to preserve the quality and to avoid any loss in quality and quantity. The main purpose of this
contest is to remind the customer to buy the product as soon as he enters the shop. Another
objective is to influence the dealer to stock the product and support the company in increasing the
sales. The display contest has to be announced well in advance and promotional materials to be
distributed to all the selected dealers in a geographical area. Prizes for best displays are announced
to motivate the dealers; the contest lasts for about a month. A well-planned product display contest
not only increases the involvement of dealers in the company's products but also increases the sales
during the contest period. This is used for promoting consumer goods such as shampoos, soaps and
toothpaste.

Reference :
Business Today
Advertising & Management
Economic Times
Hindustan Times
www.wikipedia.org
www.seminarsonly.com