Executive Summary

B. Sirkar Johuree is a renowned name among the Kolkata jewellery retail outlets. For more than 60
years, it has been in the business of making and selling of gold jewellery. It enjoys a reputation as
being one of the oldest jewellery houses and has two retail outlets in Kolkata. B Sirkar Johuree
enjoyed a good market share till the arrival of the new brands and their aggressive marketing since
1980s. It is known for its excellent wedding jewellery and is a trusted name among many families in
Kolkata who have purchased jewellery from B. Sirkar Johuree for two or three generations.

B. Sirkar Johuree will be engaging in a controlled expansion and modernisation program to increase
its market share and retain / bring back old customers. It will adopt modern marketing strategy to
fight competition and regain customers lost over the last 10 years.

Situation Analysis

B. Sirkar Johuree currently does not figure among the top Kolkata-based jewellery retailers. Target
Marketing will be the key to raise visibility and awareness. The market is witnessing tremendous
growth in trendy, contemporary designs, studded and light-weight jewellery where B. Sirkar Johuree
does not have a significant presence. Its limited reach through the two showrooms is an impediment
to growth. The entire retail experience of customers at the showrooms needs to be strengthened.

Market Summary

The main market information and attributes regarding the target customers can be summarised as
follows:

Attributes Category A Category B Category C Category D

Socio-Economic A1, A2 and B1 B1, B2 and C B2, C and D D, E1 & E2
Category
Age 20 and above 25 to 55 25 to 55 25 to 55
Monthly 60,000 40000 to 60000 20000 to 40000 Less than
Household 20000
Income (Rs)
Buying Pattern Round the year Festivals, Occasions & Weddings & Weddings
Special Offers/Schemes bargain offers
Point of Shopping Malls, Retail Showrooms Neighbourhood Neighbourhood
Purchase Retail shops & Retail Shops
Showrooms Showrooms
Brands Gili, Nakshatra, Senco, MP Jewellers, Smaller Brands Unbranded
Asmi, Tanishq, P Anjali, B Sirkar Johuree,
C Chandra Dutta Guinea Palace
Price Sensitivity Low Medium High Very High
Jewellery Casual, Evening Casual Casual Casual
Designs wear,Partywear, Formal / Officewear Officewear Wedding
Officewear, Wedding Wedding
Wedding
Jewellery Type 22 ckt, 22 ckt / 18 ckt 22 ckt / 18 ckt 22 ckt
diamond, Diamond, studded gems gold, imitation, Imitation,
platinum, Gold-plated silver silver
studded gems
Credit options Use credit card Need EMI options Not needed Not needed
Market Demographics

The profile for the ideal customer (Category B) consists of the following factors:

Geography

• Kolkata and its suburbs

• District Headquarters and B-category towns of West Bengal
• State capitals of eastern states i.e. Ranchi, Jamshedpur, Dhanbad, Patna, Guwahati, Agartala,
Bhubaneswar, Cuttack, Puri

Demographics

• Female and Male

• Ages 25 to 45
• Monthly Household Income ranging from Rs 30,000 to Rs 60,000
• Have college degree (graduates)
• Family Size: 4 and above (live with parents); full-nest
• Service holders, self-employed professionals, SME businessmen etc.

Psychographics (Behaviour factors)

• Judicial spending of discretionary income

• Joint decision-making (consult and decide); rarely buy on impulse
• Aspirational – want to climb the social ladder
• Traditional but modern outlook
• Have strong values and beliefs but are willing to experiment
• Conscious of value of money; weigh options and negotiate for better deals
• Interested in new designs, special offers and promotional schemes
• Brand loyal
• Emulate the achievers; want to use same products / designs as the rich & famous

Market Needs

• Selection: A wide range of jewellery styles, designs and price points ranging from Rs 2000 to
Rs 40000 in 22 carat / 18 carat, diamond / precious gems/ white gold / gold-plated material
• Accessibility: The stores / retail outlets should be located conveniently within 45 minutes of
travelling time from the customer’s place of residence. Besides the showrooms, the
customers also visit Exhibitions and fairs, where some planned / impulse purchase happens
• Customer Service: The customer should be impressed with the showroom ambience, the
display, lighting, air-conditioning, seating arrangement, mirrors etc. to the level of attention
and service that they receive. The salespersons have a very important role to influence
purchase decisions and should be skilled at salesmanship. They should be trained, well-
mannered, well-informed and cheerful. A high level of service should be maintained during
all transactions starting from answering questions to taking orders to warranty repairs.
• Competitive Pricing: The pricing structure should provide the customer a good value for
hand-crafted jewellery and a fair margin for the Brand
Market Trends

• Unique pieces and limited production items; part of customer’s broader desire to be
different.
• Growing demand of diamond-studded jewellery
• Growing usage of stone-studded jewellery
• Growing purchase of gold-plated jewellery for casual / office wear
• Demand of light-weight jewellery
• Aesthetic value of jewellery becoming more important particularly to the younger
generation; hence, need for artistic designs

SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the company and
describes the opportunities and threats faced by B. Sirkar Johuree

Strengths

• Trusted name
• Decades of experience
• Landmark showrooms
• Loyal customers
• Quality of products

Weaknesses

• A large portion of target market is unaware of B Sirkar Johuree’s products

• Limited time and budget to market the company to the segmented target population
• Struggle to constantly create new designs
• Limited accessibility to potential customers as there are only two showrooms and zero
presence in other towns
• Management Information Systems and Customer Relationship Management models lack
depth and inadequate
• Showrooms and Sales Staff are old

Opportunities

• A market growing at 30%, which to a large extent, is unaware of B. Sirkar Johuree

• Growing demand and usage of light-weight and studded jewellery
• Expand footprint to cover a larger geography in suburbs and district markets
• The injection of fresh, creative designs to boost customer interest and sales
• Change the Brand image to leverage higher salience to the new / potential buyers

Threats

• Growing competition from Indian / foreign brands on one side and Kolkata-based retail
outlets who are aggressively opening new stores and marketing their products
• Copying of artistic / new designs within days of hitting the shelves
• Slowdown of the economy that will have reduction of disposable income of customers
Competition and Buying Patterns

Some competitors work and distribute locally while others have national distribution systems. Some
artists will design products for larger companies to manufacture; others will design and make the
pieces themselves. Because of the very large and distributed nature of artisan jewellery design, the
market is too dispersed to have a complete picture of competition.

Competition takes the following forms:

1. Artists creating designs that are manufactured on a large scale and distributed nationally.
Either they are big enough to have their own brand name or they belong to a firm that is
hired by the larger companies to develop designs that these companies will manufacture
and sell nationally.
2. A company that have their own designers in-house. In this case, everything is done
internally; designing, marketing and wholesaling. Another variation would be in-house
designs, marketers and wholesalers with the manufacturing contracted out
3. Artists who design and make all the pieces themselves and then do the retailing themselves
– essentially one-man shows

Buying patterns typically falls under four categories:

1. Festival Buying: Typically done by the A1, A2 & B1 categories during Dhanteras, Poila
Boisakh, Akshay Tritia, Durga Puja, New Year etc. The buying is pre-planned and usually done
from the Store / Brand of choice and is a test of customer loyalty.
2. Gift Buying: Wedding, Anniversary, Engagement, Birthdays, Annaprasan etc. It can happen
any time of the year but is a planned purchase. However, it is usually not known what item
or where the purchase will be made. Here, product promotions, new designs, special offers
can tilt the balance and effect a sale.
3. Impulse Purchase: Someone will be shopping, they are not in need of anything, they will see
the item and will want to have it, on the spot. This is very difficult to tap, unless you are
present in the shopping malls and main markets of Kolkata like Hatibagan and Gariahat
4. Accessory / fashion Purchase: Although it overlaps with the Festival buying for our target
customer segment, it can also happen round the year since a customer will be buying the
jewellery as a accessory to match an outfit / dress or other piece of jewellery.

Product Offerings

B. Sirkar Johuree sells jewellery made of 22 carat gold, diamond-studded jewellery in 18 carat gold
setting, stone-studded jewellery in 18 carat gold, gold-plated jewellery, white gold items, silver
fashion jewellery and gemstones.

Specific sub-brands will be created for the major product categories e.g. a Wedding collection, a
casual wear collection, a Gift Item collection, a premium party wear collection of exclusive designs, a
couples’ collection, a diamond set collection etc.

Product-market-occasion-target customer mapping will be done for effective promotion

Market expansion

B. Sirkar Johuree has decided on a strategic expansion of its presence by first establishing franchise
outlets in 5 key district towns of West Bengal followed by two each in suburbs and Kolkata.
Keys to Success

• Unique and new designs

• Refreshing Brand image and clear positioning
• Quality and guarantee of purity
• Customer Service
• Customer Relationship (Loyalty programs)
• Excellent Showroom retail experience for customers

Mission

B. Sirkar Johuree’s mission is to establish itself as one of the leading (top 5) Kolkata-based jewellery
houses in West Bengal by making stylish and affordable jewellery for the target market segment
which is of high quality and artisanship. We exist to attract and maintain customers through creative
designs and customer attention. When we adhere to this maxim, everything else will fall in place.
Our services will exceed the expectations of the customers.

Critical Issues

B Sirkar Johuree has the following issues that need attention:

• Perception in the market as a traditional jewellery house (read as old & staid)
• Designs are not upgraded / changed quickly
• Dedicated Professionals needed in designing, manufacturing and marketing
• Modest fiscal approach in market expansion

Marketing Strategy

B. Sirkar Johuree will involve in the following forms of marketing activity:

Brand Marketing

There is an immediate need to change the brand perception. Whether we decide to change the
brand design, logo etc. or not, we must enhance the brand image. An exploratory research will help
us identify the current status more accurately and hence the need for change. The brand marketing
exercise will have the following components:

• Brand advertisements in TV and ABP; Outdoors (Hoardings / Kiosks in strategic locations)

• Corporate Film (to be distributed to channel members, designers, corporate clients and also
to be run at Exhibition Stalls and sponsored Events / programs and in the store
• Decision to have Rituparna Sengupta (or any other person) as a Brand ambassador should be
for a minimum of two years as we are going to make an expensive ad film which should run
for more than one year, at least
• Participation in Exhibitions, Gold festivals etc.
• Organise a Jewellery designing contest
• Award for best gold jewellery artisan
• Cross-promotional tie-ups with renowned garment shops, furnishing / furniture brands,
tour/ travel operators, consumer durables showrooms and Marriage reception halls
The brand strategy and brand building exercise will have a positive impact on the following areas:

• Create an image that B. Sirkar Johuree is a vibrant, refreshing and modern brand
• Counter sales will increase with new customers willing to try out B Sirkar Johuree products
as a result of awareness and interest created through high-impact advertisements
• Corporate sales and Institutional tie-ups for Gold gift items, coins, mementos will increase
• Cross-promotional tie-ups will generate additional sales & increase brand visibility
• The right atmosphere and popular mindset will be created to expand market to Districts
• The image of B. Sirkar Johuree among the gold industry fraternity will improve substantially

Product Marketing

These offers will be advertised through dailies and Radio, and if possible, through TV. The objective
is to generate additional sales in the short-term and also increase awareness and visibility of new
product range and designs.

• Offering short-term (15 days) sales promotion schemes to boost sales during festivals e.g.
Akshay Tritia (April), Rath Yatra (June) and Dhanteras (October)
• Special weekend offers (once a month) on new design arrivals (light-weight jewellery).
• Special offers on Product sub-brands e.g. Bandhan, Kalpana etc.
• Bridal collection promotion during the marriage season

Customer Relationship Marketing

While it is very important that we bring in new customers through the brand and product marketing
initiatives, we will build on the existing customer loyalty and trust through the following initiatives to
have steady business from our core customer base. These will also help in getting new customers:

• Website development: It will be a source to disseminate information, increase visibility and

process orders. The website will be submitted to various search engines so that people who
are not specifically looking for B. Sirkar Johuree will come across the site
• Astrology consulting services: A renowned astrologer will provide consulting services on
specific days from the showrooms in Kolkata. We will also invite celebrity astrologers from
Mumbai or other cities to visit our Showrooms as we are doing now
• Direct Mailer promotion: We will send mailers by post to our loyal customers to promote
special offers on new designs and also value-added offers like River Cruise, 1 night 2 day
stays at Ffort Radisson, Floatel etc.
• Fashion Show in association with other sponsors. A one night event, it will be a cultural
event besides being an event to showcase our range of jewellery
• Housing Society Activity: Run a special drive to promote B. Sirkar Johuree in the premium
housing societies in association with other sponsors through some entertaining events

Marketing Objectives

• Increase the footfalls to our Kolkata showrooms by at least 10% within 3 months
• Increase the sales by at least 25% with the help of additional business from the Franchisees
• 15% increase the sales relative to marketing expenses steadily every month from July 2009
onwards
• 15% increase in repeat purchases by existing customers
• Franchise agreement sign-up for 5 towns will generate Rs 4 crores
Financial Objectives

• 15% increase in gross margins from July 2009 onwards

• 10% increase in Return on capital employed from July 2009 onwards

A growth in sales revenue and profits will be utilised to invest in shop redecoration, hiring of skilled
professionals for designing and manufacturing as well as to upgrade the management information
systems, the skills of sales staff through training and website upgradation.

Positioning Strategies It will be evolved on obtaining the results of the Market Research exercise.

Marketing research

Problem Statements

1. B Sirkar does not have a good brand perception in the minds of the Trade & customers
2. A new Brand will not increase the chances of success in business, specially, of Franchise
operations, other things remaining the same
3. The market for 18 carat studded jewellery (diamonds & precious stones) is not big enough
4. Franchise model of business is not viable in the district markets (profitability)
5. Gold jewellery is purchased by weight + making charge. There is no premium attached to
designs or brands
6. 24 carat jewellery and Art-carat jewellery cannot be sold from same outlet
7. Declining sales is because of increased competition OR inadequate and ineffective
advertising OR deterioration in the product quality (designs) OR a combination of these
factors

Exploratory Research

The objective of the research will be to uncover the reasons behind the declining sales and the
changes in the brand image as compared to 1990s. Three sets of customers are chosen (20 of each
set) and telephonic interview will be conducted:

a) Those that purchased jewellery from B. Sirkar Johuree at least 7 years back but have not
purchased since, although they have purchased jewellery from another store

b) Those that have purchased jewellery recently (2006 onwards) and have also purchased
jewellery earlier from B Sirkar Johuree (before 2000)

c) Those that have purchased jewellery from B. Sirkar Johuree in 2007 / 2008

The same set of exploratory questionnaire will be administered to all three sets. The responses
will be recorded for further interpretation and analysis.

Focus Group

The objective of the research will be to understand the needs and expectations of the customers
today, how far B. Sirkar Johuree is being able to fulfil those needs and what we need to do to satisfy
our customers. We will select informed and knowledgeable customers from the Exploratory Research
group who fit the demographics and psychographics of our target customers. Group size = 8
Trade Research in District Towns

A comprehensive field research will be carried out in 5 towns of Durgapur, Burdwan, Asansol,
Medinipur and Haldia to assess the market condition with the specific objective to understand
whether we can have a viable franchise business in these markets. The research will also deliver
valuable insights in the following areas:

a) Volume & value of business; trend of business growth, profits & margin
b) Demographics of customers, buying patterns, need gaps and expectations from Brands
c) Product range, item-wise sales and movement of stocks
d) Competitor business health and operational problems

Sales Forecast can be made on obtaining the figures as required in Annexure A.

8
Da Ap 12 16 18 25 30 10 25 30 15 25 15 30
Milestones ys r Apr Apr Apr Apr Apr May May May Jun Jun Jul Jul
Marketing Plan
Sanction 3
Exploratory Research 2
Focus Group
Discussion 1
District Trade
Research 7
Brand Positioning
Decision 7
Communication
Strategy Decision 7
Franchise Business
Decision 5
Product, Pricing,
Promo Decision 5
Creative & Media
Plan Rollout 10
Scouting for
Franchisees 30
Finalisation of
Franchisees 15
Corporate Film
making 5
Start of Franchise
Business 15
Cross-promotional
tie-ups 60
ATL / BTL in districts 45
Website
Development 30
Upgradation of MIS 30
Upgradation of
Showrooms 30
Expense Budget

Research activity: Rs 60,000/-

Setting up Franchise Network in 5 towns (scouting, marketing & finalising): Rs 250,000/-
Franchise Showroom Decor (5 outlets): Rs 10,00,000/-
Franchise Promotion; ATL & BTL for 5 places: Rs

Creatives for Print:

Creatives for TV:
Creatives for Outdoors:
Creatives for Showroom Merchadising:

Media Spend:
Corporate Film making: Rs 30,000/-
Website Development: Rs 2,00,000/-
Upgradation of MIS: Rs 2,00,000/-
Upgradation of Kolkata Showrooms: Rs 5,00,000/-

Institutional Sales: Rs 20,000/- plus 2.5% incentive on value of sales generated

Cross-promotion tie-ups: Rs 5000/- for every brand / outlet signed up
Direct Mailers (5000 nos. for three rounds of posting): Rs 100,000/-

Controls

The purpose of this marketing plan is to serve as a guide for the organisation. The following areas
will be monitored to gauge performance:

• Sales Revenue: For every promotional activity and on a monthly basis

• Expense: For every activity as per Budget and on a monthly basis
• Repeat business: To track this, each customer should be given a unique customer code
number starting from the sales of October 2008
• No. of footfalls: A cost-effective way to monitor will be implemented

Contingency Planning

Difficulties and risks:

• Problems generating visibility

• Changes in customer preferences
• Copying of exclusive designs
• Rising price of gold

Strategic investments are to be made in developing designs, obtaining quality certificates/

equipment and exclusive manufacturing by artisans, based on market demands and response.