“A COMPARATIVE STUDY ON THE

CONSUMER’S PREFERENCE AMONG

BRANDED AND NON BRANDED JEWELLERS"

Project Report
Submitted to
Panjab University, Chandigarh
in partial fulfillment for the degree of
Bachelor of Business Administration
(2017-2020)

Supervised by: Submitted by:

Ms. Anchal Arora Aashna Jain
Roll No.95
Pupin No.17045402

SRI AUROBINDO COLLEGE OF COMMERCE AND MANAGEMENT,

LUDHIANA

1
 DECLARATION

I, Aashna Jain, a Student of BBA, at Sri Aurobindo College of Commerce and Management,
Ludhiana hereby declare that the project on the topic “A comparative study on the
consumer’s preference among Branded and non branded Jewellers” is my original work
and that it has not previously formed the basis for the award of any other Degree, Diploma,
Fellowship or other similar titles. It has been done under the guidance of Ms. Anchal Arora.

(Signature)
Aashna Jain

2
 CERTIFICATE OF APPROVAL

This is to certify that the project work entitled “A comparative study on the consumer’s
preference among Branded and non branded jewellers” is a bonafide work carried out by
Ms. Aashna Jain the degree of Bachelor of Business Administration at Sri Aurobindo
College of Commerce and Management, Ludhiana affiliated to Panjab University,
Chandigarh. The project report is approved hereby.

(Ms. Anchal Arora)

Assistant Professor
SACCM, Ludhiana

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 ACKNOWLEDGEMENT

At the outset I bow my head before the ‘Almighty’ for the immense blessings showered on
me to carry out this project work successfully. Also I must express my deepest gratitude to all
people along the way. No words can adequately express my sense of gratitude; still I express
my heartfelt thanks through words.

I express my deep sense of gratitude to my research supervisor Ms. Anchal Arora, Assistant
Professor, Sri Aurobindo College Of Commerce And Management for her in valuable
guidance for the right blend of flexibility and support, for meticulous reading of the text,
honest criticism and helpful feedback and for always believing in me and encouraging me to
set higher goals.

My sincere thanks to Dr. Ajay Sharma, Principal, Sri Aurobindo College Of Commerce And
Management for providing all necessary assistance during the course of my research.

I express my deep sense of gratitude to my loving and supportive family. And a special word
of thanks to all of my friends for their guidance and support.

Aashna Jain

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 TABLE OF CONTENTS

CHAPTER TITLE PAGE

NO. NO.
1. INTRODUCTION 6-25
2. REVIEW OF LITERATURE 26-28
3. RESEARCH METHODOLOGY 29-32
4. DATA ANALYSIS AND 33-46
INTERPRETATION
5. FINDINGS 47-48
6. CONCLUSION 49-50
7. RECOMMENDATION 51-52
BIBLIOGRAPHY 52-54
QUESTIONNAIRE 55-58

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 CHAPTER-1
INTRODUCTION

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 INTRODUCTION

India is a leading player in the global gems and jewellery market. The gems and
jewellery industry occupies an important position in the Indian economy. It is a leading
foreign exchange earner, as well as one of the fastest growing industries in the country. The
two major segments of the sector in India are gold jewellery and diamonds. Gold jewellery
forms around 80 per cent of the Indian jewellery market, with the balance comprising
fabricated studded jewellery that includes diamond studded as well as gemstone studded
jewellery.

The Indian gems and jewellery industry is highly competitive in the world market
due to its low cost of production and the availability of skilled labour. India has a historic
relationship with jewellery.

Many kings, emperors and dynasties featuring countless wars, conquests and political
upheavals have ruled the Indian sub-continent. Different dynasties ruled different parts of
India and had 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 despite any natural calamities and disasters and
for centuries was the only means of savings 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 tons of gold.

TABLE - KARAT CALCULATION

24 Carat 100 percent pure gold

22 Carat 91.66 percent pure gold
20 Carat 83.33 percent pure gold
18 Carat 75 percent pure gold
2 Carat 8.33 percent pure gold

1 Carat 4.166 percent pure gold

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Apart from its historical 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 amongst farmers as there is an upsurge in gold sales
after a good agricultural season. Buying gold is an important part of Indian’s life phases— 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 un-organized to organized 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 organized jewellery market is less than Rs 1000 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 projected 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.

The young Indian woman who is the prime market for the organized retailers differ
from the traditional jewellery customer in many ways as enumerated below.

 She is well educated and more in tune with international trends.

 Increase in working women with high disposable incomes.

 Greater mobility

 Less constrained by traditions.

All these reasons and more ensure that the modern Indian woman is looking for
jewellery from a perspective different from the past. In addition, organized retailing offers
quality products, follows standardized practices and uniform pricing strategy. Organized
retail formats work on transparent policies that are not necessarily available at the traditional
jewellery shops Today, goods and services offered by any retailer are strongly driven by their

8
identified Target group . There are several examples of retailers who are drawing in
consumers either across a wide segment of socio economic classification, clearly defined by
them. This has been the first step towards organized jewellery retailing in India. In a short
span of time, organized retailers have successfully implemented a change in the buying
pattern of the Indian consumer.

In addition, branded players require focused advertising and astute salesmanship to

compete with traditional jewelers. Besides the major brands Tanishq, Carbon, Oyzterbay,
Gilli and Trendsmith several regional players have opened branches to leverage the trust and
reputation that they have built up over the years.

YESTERDAY TODAY
Unbranded Branded
Silver & Gold jewellery Gold& Diamond jewellery
Investment Investment + Fashion
Traditional design Fashionable & innovative design
Marriage & festival is peak season Wearability and gifts

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STRUCTURE OF JEWELLERY IN INDIA

Plain gold Jewellery

 Studded Jewellery

 Silver jewellery

 Costume Jewellery

India is the largest consumer of Gold in the world with annual demand close to 800
tons. It is believed that 90% of this demand is directed towards manufacturing of jewellery.
The bulk of this buying is still rooted in tradition and the jewellery is sold in traditional
designs. Jewellery designs vary across different regions of India, making the style unique to
each region. In South India the designs are inspired by nature, paisley motif of the mango,
rice grains, melon and cucumber seeds, etc. In Western and Northern India, the Mughal
influence can be seen in the meenakari (enamelling) and Kundan work. Jewellery is crafted
not just for humans but also for the deities, ceremonial elephants, and horses. Hence the
variety of gold jewellery in India is truly mind-boggling and bears testimony to the excellent
skills of Indian jewellers of today, Ornaments are made practically for every part of the body
nose rings, bangles, necklaces and special jewellery for the head, ankles, waistbands, and so
on.

Plain gold jewellery is fabricated mainly in 22 karat gold and even 18 karat is not
favoured, as the mindset does not accept low purity gold jewellery. The logic is that the
jewellery is primarily bought as an investment in gold, and investing m a low purity product
does not appeal to the Indian consumers. However, for the studded gold jewellery, 18 karat
has become acceptable.

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CONSUMER BUYING BEHAVIOUR WHILE BUYING JEWELLERY

While buying a product, a consumer displays different kinds of behaviour 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 like jewellery, which satisfies a consumer’s self
esteem needs (according to the Maslow’s hierarchy 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 of
high involvement consumer, they need to help buyers learn about the product attributes and
their relative importance.

Gold Jewellery Market in India

Before the liberalization of the Indian economy in 1991, only the Minerals and Metals
Trading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to
import gold. The abolition of the Gold Control Act in 1992, allowed large export houses to
import gold freely.

Exporters in export processing zones were allowed to sell 10 percent of their produce
in the domestic market. In 1993, gold and diamond mining were opened up for private
investors and foreign investors were allowed to own half the equity in mining ventures. In
1997, overseas banks and bullion suppliers were also allowed to import gold into India. These
measures led to the entry of foreign players like DeBeers, Tiffany and Cartier into the Indian
market.

In the 1990s, the number of retail jewellery outlets in India increased greatly due to
the abolition of the Gold Control Act. This led to a highly fragmented and unorganized
jewellery market with an estimated 100,000 workshops supplying over 350,000 retailers,
mostly family-owned, single shop operations In 2001, India had the highest demand for gold
in the world; 855 tons were consumed a year, 95% of which was used for jewellery. The bulk

11
of the jewellery purchased in India was designed in the traditional Indian style.

Jewellery was fabricated mainly in 18, 22 and 24 carat gold. As Hallmarking was not
very common in India, under-carat age was prevalent. According to a survey done by the
Bureau of Indian Standards (815), most gold jewellery advertised in India as 22-carat was of
a lesser quality. Over 80% of the jewelers sold gold jewellery ranging from 13.5 carats to 18
carats as 22-carat gold jewellery.

The late 1990s saw a number of branded jewellery players entering the Indian market.
Titan sold gold jewellery under the brand name Tanishq, while Gitanjali Jewel a Mumbai-
based jewellery exporter, sold 18-carat gold jewellery under the brand name Gilli , Gitanjali
Jewels also started selling 24-carat gold jewellery in association with a Thai company, Pranda
Su- Ra (India) Ltd. launched its collection of diamond and 22 -carat gold jewellery in 1997.

The Mumbai-based group, Beautiful, which marketed the Tiffany range of products in
India, launched its own range of studded 18-carat jewellery, Dagina. Cartiers entered India in
1997 in a franchise agreement with Ravissant. Other players who entered the Indian branded
gold jewellery market during the 1990s and 2000-01 included Intergold Gem Ltd.,
Oyzterbay, Carbon.

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 BRANDED DEALERS

TANISHQ

In 1984, Questar Investments Limited (a Tata group company) and the Tamil Nadu
Industrial Development Corporation Limited (TIDCO) jointly promoted Titan Watches
Limited (Titan). Initially involved in the watches and clocks business, Titan later ventured
into the jewellery businesses. In 1995, Titan changed its name from titan Watches Ltd.’ to
‘Titan Industries Ltd.’ in order to change its image from that of a watch manufacturer to that
of a fashion accessories manufacturer, In the same year, it also started its jewellery division
under the Tanishq brand.

Among the branded jewellery players in the Indian market, Tanishq is considered to
be a trendsetter. When it was launched in 1995, Tanishq began with 18-carat jewellery.
Realizing that such jewellery did not sell well in the domestic market, the 18-carat jewellery
range was expanded to include 22 and 24-carat ornaments as well. When Tanishq was
launched, it sold most of its products through multi brand stores. In 1998, Tanishq decided to
set up its own chain of retail showrooms to create a distinctive brand image.

By 2002, Tanishq retailed its jewellery through 53 exclusive stores across 41 cities.
To meet increasing demand, Tanishq planned to open 70 stores by the end of 2003 and offer a
range of wearable products with prices starting at Rs. 400. With sales of Rs. 2.66 billion in
2000-01, Tanishq had a 0.66 percent share of the total jewellery market and a 27 percent
share of the branded jewellery market. The market of Tanishq jewellery is growing since long
time.

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30000Series1

25000

20000

15000

10000

5000

01 02 03 04 05 06 07 08 09 10 11
00 - 01 - 02 - 03 - 04 - 05 - 06 - 07 - 08 - 09 - 10 -
20 20 20 20 20 20 20 20 20 20 20

Figure 1 growth in sales from 2000-01 to 2010-11 in Million Rupees

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 D'DAMAS

D'damas is one of the most popular jewellery brands 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.

D'damas has a vast variety that allows every customer a choice of jewellery to reflect
her personality, tastes and to suit every occasion. It has gold and diamond studded jewellery
matching various lifestyle, occasion and price points that cater to diversified customers.

D'damas is committed to the highest levels of customer satisfaction, and every piece
of jewellery comes with a special certificate of authenticity assuring of both the diamond and
gold content of the piece. D'damas jewellery is accompanied with an IGI certificate &
Hallmarking, a world renowned, further certifies the diamonds, which is headquartered in
Antwerp.

Each sub-brand under D'damas offers stylized and contemporary designs,

conceptualized and created by an in-house team of award winning designers.

Their strength in design has been recognized repeatedly with D'damas designers
having won a number of design awards.

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 Kalyan Jewellers

History and Future

The group derives its origins from textile retailing and wholesaling and has experience of
over 100 years in the trade. Kalyan branched out into the field of jewellery retailing in the
year 1993 by opening its first store in Thrissur.

The reason behind the kalyan group's foray into this business itself is quite unique and makes
it interesting to read. The ancestors of the current management come from a pious
background that comprised of priests, saints and advisor to kings. Hailing from the Tanjavur
district of Tamilnadu, these ancestors had migrated to Kerala.

The decision to start business was taken in response to the call of one of the senior relatives
of the clan, who was a Dewan to the Maharaja of Kochi, who believed 'Enterprise and
business was necessary to create job opportunities and to make India self dependent'. He also
belived that 'business should be fair with a social objective and not just for self motives'. The
group still adheres to the founding principles of its forefathers and this explains the group's
firm grounding in fair business practices and ethics.

Vision

Kalyan primarily aims at common social good through fair and ethical business practices.
Kalyan is a promise to every customer; a promise of fulfilling the customer’s needs to their
extreme satisfaction and serving only the best in the market.

Mission

To give customer much more than what he wants and asks for, in jewellery retailing, in all
the key areas of quality, value for money, transparency and customer service, through

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innovative means and tools, which in turn will make Kalyan Jewellers the most trusted
jewellery, globally.

They created history a few years, not just in jewellery retailing but in the retail industry itself
with our path breaking "My Kalyan Mini Store" out lets.

These mini stores provide services like Quality Education of Gold in for customers who are
unaware about various facts of the Industry. Enrollment in Gold & Diamond Purchase plan,
enrollment in Gold Insurance plan, educating and guiding on wedding purchase , Advance
Booking of Gold for protection against price fluctuation, Gift Voucher sales.

All Kalyan Mini Stores also stock the finest collection of Diamond Jewellery at amazingly
affordable prices. Diamonds are considered a prestigious, status and class defining Jewel. But
they believe that Diamonds are for Everyone and there is no constraint on who can wear
these. Everyone is imperial. With Kalyan for you, you are never too far from gifting yourself
or your loved ones the most exquisite Diamond Jewellery. Today, My Kalyan is a household
name, near and far, in even the smallest villages of India’s myriad landscape. They are proud
to say that customers who have experienced the service at our My Kalyan Mini Stores, come
back to us, again and again, without fail, which in itself is the proof of the quality they deliver
and this gives us the inspiration to keep moving ahead with more innovations, purely for our
customers.

Products available

Kalyan Mini Stores stock an exclusive collection of the fines affordable diamond jewellery.
The craftsmanship that goes into the painstaking process of design until the perfect finish of
each piece of jewellery is what makes them stand out from other jewellers. They have a wide
array of traditional and modern designs of diamond jewellery within the range of Rs. 5000 to
Rs. 15000. All diamonds in these products are IGI certified and all the gold used in these
products is BIS certified. This assures you of the quality and guarantees buyback as well.

LOYALTY PROGRAM

Kalyan Jewellers was the first to introduce one-of-a-kind customer loyalty programs in the
jewellery retailing industry. This loyalty program comes with oodles of exciting benefits for
the customers apart from the usual accrual of points that could be redeemed at any time. A
one-time purchase of Rs. 1000 from any of the Kalyan Jewellers outlets enables ownership of
this loyalty card and you become part of our program.

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 GILLI

Gilli launched a collection of traditional Indian ornaments made of 18-carat gold. In

1999, the Gilli Gold range was introduced. This range included rings, pendants, earrings,
necklaces and bangles made of 24 carat gold. All Gill products came with a guarantee of
diamond and gold quality.

Gilli distributed its jewellery priced between Rs. 500 to Rs. 40,000 through lifestyle
and department stores across the country to increase accessibility among its target segment,
the 15 to 30 age group. The collection was promoted at college campuses with banners,
pamphlets and a few advertisements targeted at teens. Gilli soon realized that just pushing its
product was not enough; it also had to customize its products for special occasions.
Following this, it launched a Diamond Heart Collection specially designed for Valentine’s
Day. This collection consisted of tiny heart-shaped diamond jewellery was well received by
teens. Special packaging, catchy advertising and extensive press coverage contributed to the
success of the collection. Gill also made special promotional offers during festive seasons
like Christmas and Diwali. Having captured the low price point market of Rs. 2000 to Rs. 10,
000, the company is focused on penetrating the premium market of customized jewellery. For
this Gitanjali jewels opened a jewellery salon, Gianti, to provide customized jewellery to
clients in India.

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 NAKSHATRA

A diamond is a symbol of power and beauty - a creation that captures the essence of
nature’s magical process through millions of years. The Indian jewellery market has been
transformed in the same way by Nakshatra. In less than a decade after launch, the brand has
appropriated the physical values of the diamond - Its quality, brilliance and clarity — and
made a deep impact on the Indian psyche. So stunning has this impact been that within one
year of its debut Nakshatra had registered a 93% top of mind recall -surpassing every other
diamond jewellery brand by a long margin (Source: Global Tracking Study conducted by
Research International, January 2003).

This recall has also been reflected in the volumes Nakshatra had achieved. Between
2005 and 2007 the brand grew eleven times. it has impacted the jewellery trade in other ways
too, More than 70% of jewellery retail outlets have reported that Nakshatra has not only
played a key role in generating overall diamond jewellery sales it has also helped them
increase their own sales of floral jewellery to people who had come asking for Nakshatra.
The effort to promote Nakshatra has gained recognition from more than just the retail trade.

In 2003, the Nakshatra Utsav won the Best Trade Promotions award at the
McDowell’s Signature All India Promo Awards. In 2007 the brand was given the Retail
Jeweller Award for the Best TV campaign of the Year. The in-house design team at
Nakshatra with its wide repertoire of innovative designs, fresh ideas and novel concepts also
won multiple honours including the CK New Delhi Gold Souk Design Award in 2006, the
IIGJ Award in 2007 and the Tahitian Pearl Awards in 2005 and 2007.

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 GANPATI JEWELLERS

Ganpati Jewellers, a group of companies who believe in quality for the last four
decades. Shree Ganesh Jewellers Ltd. is a well known name in the exports of designer and
studded jewellery in India and abroad. The company is promoted by Mr. Kailash Kalra.
During a short span especially because of Mr. Kailash Kalra's hard-work, leadership,
understanding  of buyer's requirements and limitless efforts and quality consciousness that
the company is continuously increasing its market share.

Ganpati Jewellers has the following three claims to fame in a short span of two years.
The first Jeweller in Punjab to have: -

1. ISO 9002 certification.

2. Diamond tested by computerized magnifying machine.

3. Gold jewellery tested by computerized Spectro machines.

This is clear that they are emphasizing on quality rather than quantity at affordable
prices over its well known competitors. The company has specialized in plain, studded
jewellery, finely crafted, contemporary designs with care in details and savings you cannot
ignore.

The Jeweller is now well established in the industry in terms of innovative designs,
creativity, skills & quality products. Ganpati Jewellers is constantly in the pursuit of
excellence to meet individual needs, in this fast changing fashion world.

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 KHANNA JEWELLERS

The Khanna Group of companies was founded in 1953 by Late Shri Wazir Chand
Khanna and his three sons. Their first showroom opened its doors to customers at Karol
Bagh, New Delhi. Now the Khanna group of companies has, over the years, diversified into
several new areas. Khanna jewelers India has been adding the magical sparkle of diamond,
gold and platinum jewellery to the lives of the jewellery connoisseurs for over 50 years.

Nikkamal Jewellers

There are many other local dealers for jewellery such as Nikkamal Jewellers, Mahavir
jewelers, Jain Sons Jewellers etc. who are earning a good name in jewellery market.
Although they sell their own produced jewellery yet they have many consumers who prefer
buying jewellery only from them. These dealers are preferred by consumers because of their
good quality products and strong personal relations with consumers.

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 PC Jeweller Limited 

PC Jeweller started operations in April 2005 with one showroom at Karol Bagh, New Delhi
and is today one of the fastest growing jewellery retail chain with 58 showrooms across 48
cities and 17 states. 

Backed by strong promoter team, professional management and a reputed board, the
company has followed meticulously designed business plan, believed in speedy execution
with careful optimism over the years.

About Them

It all started when PC Jeweller first opened its first showroom in 2005 in Karol Bagh, New
Delhi with a vision to redefine elegance, allure and style in the form of stunning pieces of
jewellery. Today they have physical presence at 58 showrooms across 48 cities and 17 states.

Since its inception, the company has been a pioneer in designs as every product is crafted to a
standard of perfection. Whether it is elaborate wedding jewellery or affordable wearables, PC
Jeweller has fashioned exceptional designs with unmatched quality. Over time, timeless
treasures from PC Jeweller have helped intimate moments become lifetime memories.

Company’s business model consists of setting up large format, stand alone showrooms at
high street locations. Its stores stock a wide range of jewellery across all price points, with an
increasing focus on diamond jewellery. The company sells only hallmarked jewellery and
certified diamond jewellery. This assurance on quality and purity along with transparent and
customer friendly policies have enabled PCJ to become an established and trusted brand
name in a short time span.

From sourcing of raw materials to the sale of the finished product, all their processes are
integrated and aligned. We map out customer preferences and manufacture products in a way
that leaves our customers spoilt for choice while making their purchases. Throughout the
entire process, stringent quality measures are taken to ensure the purity, value and finish of
the product. Our expertise extends to the possibilities of customized and personalized designs
to help the customer find and design her or his perfect piece of jewellery.

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PC Jeweller has made a remarkable journey so far and has created a brand of its own with
sustainable customer initiatives and unrivalled quality that loyal customers vouch for. With
contemporary and classic designs aimed for longevity, they are committed to providing you
the best buying experience using a collaborative approach across both online platform and
showrooms.

They hope to continue being inspired and create the most desired jewels.

Investor Relations

Incorporation: The Company was incorporated on April 13, 2005 in New Delhi under the
Companies Act, 1956, as amended (“Companies Act”) as a private limited company under
the name ‘P Chand Jewellers Private Limited’ with the Registrar of Companies, National
Capital Territory of Delhi and Haryana (“RoC”). The Company was converted into a public
limited company, pursuant to a resolution passed by the shareholders on July 5, 2011,
following which the name was changed to ‘PC Jeweller Limited’, and a fresh certificate of
incorporation was issued by the RoC on August 2, 2011.

Business Description: The Company is one of the leading jewellery companies in India in the
organized retail sector. The Company’s businesses include the manufacture, retail and export
of jewellery. It offers a wide range of products including 100% hallmarked gold jewellery,
Certified diamond jewellery and other jewellery including silver articles, with a focus on
diamond jewellery and jewellery for weddings.

Date of Listing: December 27, 2012

Stock Exchanges on which listed:

BSE Limited (Symbol: 534809)

National Stock Exchange of India Limited (Symbol: PCJEWELLER)

CIN: L36911DL2005PLC134929

23
 SECTOR PROFILE
BRANDED VS NON BRANDED JEWELLERY

BRANDED JEWELLERY TRADITIONAL JEWELLERY/ NON-

BRANDED JEWELLERY

Name and reputation attached to any item gives Traditional Jewellery will also be around where
a degree of confidence to the consumer. by consumers tailor-make their jewelry
according to their preferences.

Branded Jewellery comes with a written There is no written lifetime guarantee. Trust is
lifetime guarantee, keeping in mind the purely based on individual's trust in his
emotional quotient of the consumer. jeweller.

Excellent quality, quality of finish, packaging, Minimum efforts in packaging, finishing, sales
sales force, selling policies and backup service and low advertising.
for their jewellery.

Can be bought at any time of the year, could Is bought for specific occasions like marriage,
also be impulsive buying. festivals etc.

Run by experienced and new breed Run by traditional jewellers.

manufactures that have prior marketing
background from their business in the export
markets.

Has a more contemporary, stylish and classic Is usually traditional, bulky and ornate.
outlook, which easily segments itself among
the traditional ones.

24
 Most branded jewellery is diamond-studded Traditional jewellery is primarily gold.
jewellery.

Most diamond jewelry is certified for gold and Need not necessarily be certified and comes
diamond content and is sold at an MRP without with a complete break up of the gold and
a break up of the gold and diamond content. diamond content, including making and
wastage charges.

A large section of gold buyers though, still favour small Jeweller families. But huge
brand-building exercises are making people buy jewellery off the counter. Focused
advertising, display and astute salesmanship are being combined to take on traditional
jewellers. Pricing for jewellery is based on the designs, quality of material (metal and
diamonds) and category. By and large branded jewellery does carry a premium over
traditional jewellery but then it offers a quality and assurance of purity that is reliable and
guaranteed. However, all said and done, if all quality of diamonds, purity of the metal and
quality of manufacturing is taken into account and we compare an apple for an apple, then the
premium on branded jewellery would be in the range of 8- 10%.

Brands offers the consumer distinctive values. This is true in every product category,
including jewellery. These values could range from trust, distinctive design, specific product
benefits or superb shopping experience. Over a course of time, brands build strong, long-term
affiliations with their consumers because these distinctive values come to possess timeless
appeal. Consumers trust brands, and remain loyal to their favorite brands.

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 CHAPTER-2
REVIEW OF LITERATURE

26
 REVIEW OF LITERATURE

 Rao (2009) Organizing the un-Organized? The Rise, Recession and Revival of the
Indian Diamond Industry Working Paper Published in The Indian Institute of
Management, Ahmedabad Research and Publications W.P. No. 2009-09-01 Page No
01- 28 September – 2009. The Indian diamond industry thrives in the atmosphere of
secrecy and informality that envelops the diamond trade and has for long been labeled
as an unorganized sector of the economy. An in-depth study of the industry reveals
that the so called unorganized sector is in fact highly organized and has great potential
to offer so useful insights to the field of management in terms of new forms of
organizing, networking, business processing and for doing international business.

 Shashank (2009) told in his study “A study on the jewellery industry “ that the
industry of jewellery has boomed in the past few years due to the increased demand of
fashionable jewellery. The Gitanjali Group is one of the largest, and fully integrated
diamond and jewellery manufacturing and retailing companies in India that
successfully manages four of the 10 best-known jewellery brands in India today. The
four brands – Asmi, Nakshatra, D’Damas and Gili – are unique with structured
positioning and branding that endows each with a unique brand persona and character.

 Noronha (2005) in her study “Brand appeal” that published in THE HINDU Volume
22-Issue 23 mentioned that Branded jewellery has carved a niche for itself in the
tough Indian market and Its increasing growth rates show that before long it will
corner a significant share of the jewellery market. DTC's Supplier aims to grow
consumer demand for diamond jewellery in the context of the growing competitive
luxury goods sector.

 D.A., (1996), In the market there are largely fragmented and unbranded jewellery
shops. In spite of product quality and services, people are still buying gold jewels
form local retailers. The income level of the buyers has important contact on the type
of jewellery purchased by them. The choice of jeweler has significant relation with
the geographical site of buyer. The knowledge about the branded jewelers is due to
the advertisements floating on air or there are other sources of information also.

27
 Goldman, R. (1992) ,Most of the respondents expect good customer service from the
jewellery shops. They feel that their thoughts and ideas must be given importance at
the time of purchase. Hence the Traditional jewellery shops can improve their service
by providing adequate information to their customers relating to their purchase.
Giving immediate attention by receiving them quickly, recognize the need of the
particular product and helping them to choose the correct one makes the Branded
jewellery becomes more preferable by the customers.
 Biel, A.L. and Bridgewater, CA. (1990), Generic products that resemble goods
produced by brand-name manufacturers, distributors and retail establishments. Market
perception typically places a lower value on these goods, and the quality and
durability is often lower than branded products.

 Desai (1990): Due to increase in the usage of fashion jewellery which is in mind -
driving designs, respondents are in need of such new and trendy designs in gold
jewellery too. Though nowadays light weighted gold jewellery comes in eye-catching
designs, still more new varieties are expected by the buyers. Hence the traditional
jewellers can also use to sell fashion and light weighted gold jewellery to attract more
customers and reduce the competitions
 Gold, P. (1987),Majority of the people buy gold jewellery for the marriages in their
family. It is a traditional attitude among the people who were belongs to Kanyakumari
district. And gold jewels have different connotations attached to it. It is a habit,
ornament, companion of the difficult times, way to prosperity and carrier of value
 Ajzen, I., &Fishbein, M. (1980), The individual consumer has a set of preferences and
values whose determinations are outside the realm of economics. They are no doubt
dependent upon culture, education, and individual tastes, among a plethora of other
factors.

28
 CHAPTER 3
RESEARCH METHODOLOGY

29
 CHAPTER 3

RESEARCH METHODOLOGY
This chapter describes the research methodology adopted to achieve the objectives of
the study. It includes the scope of the study, research design, collection of data, analysis of
data, objectives of the study and limitation of the study.

Scope of the Study

The scope of the study is to get the first hand knowledge about the customer’s
perception towards branded and non-branded jewerllers. The scope is restricted to study the
customer’s attitude towards branded and non-branded jewerllers. This is done to avoid the
perpetual bias and for providing objectivity to the study.

Objectives of Study
The objective to study the “A comparative study on the consumer’s preference among
Branded and non branded jewellers" is to find out:

1) To study the consumer preference amongst the branded and non branded jewellers.

2) To find out the effect of Advertisement on consumers buying decision.

3) To ascertain the factors which influence people to buy from a particular branded
showroom or from local retailers.

4) To find out how frequently people buy jewellery and what initiates the buying process.

Research Design
The research design constitutes the blueprint for the collection, measurement and
analysis of data. It is the strategy for the study and plan by which the strategy is to be carried
out. The present study incorporates the collection of primary data for an in depth
investigation.
30
Primary Data
For the purpose of collection of primary data, a well structured questionnaire was
given to the respondents. The data was collected from the respondents of Ludhiana district
for this study.

Sampling Design
Population
A population, or universe, is the entire set people data or things that is the subject of
exploration. It is not possible to derive the data of entire population of jewellery buyers.

Sampling Unit
 A sample is a subset of the population/universe. Sampling unit for my research
will be 100 individuals who have attained the age of 18 years.

Sampling Technique
In the present research, non-probability technique for drawing a sample from the
population has been used. In non-probability technique, ‘convenience sampling’ method has
been used because population of the research is huge. Moreover, due to time constraint, the
number of respondents have been restricted to 100 people. The selection of the respondents
was done on the basis of the convenience method under non probability sampling technique.

Sample Size
Sample size is the size of sample drawn from the population, which is the true
representative of the research. The number of respondents included in the study was 100 for
convenience in evaluation and analyzing the data and because of time constraints.

Analysis of Data
In the study, an attempt was made to understand whether branded and non-branded
jewellers affects customers’ perception or not. Therefore different factors influencing the
attitude of people are studied. Data analysis is an attempt to organize and summarize the data
in order to increase result usefulness.

31
 For the analysis of primary data, the tools which have been used are percentage
method, bar diagrams and pie charts. To analyze the variables on Likert scale, weighted
average scores have been calculated. Moreover, according to the highest weighted average
score, ranks have also been assigned to the variables.

Limitations of the Study

To understand the research findings in their right perspective, it is necessary that
limitations of the study should be mentioned. The present research suffers from the following
limitations:
1. While every effort was made to get the questionnaire filled, even then some elements of
biasness might have crept in.
2. Only 100 respondents have been contacted due to time constraint.
3. Sample may not be the true representative of the universe.

32
 CHAPTER-4
DATA ANALYSIS AND
INTERPRETATION

33
 CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

Q.1 Do you wear jewellery?

No. of Respondents %age

Yes 100 100%
No 0 0%

Yes

Figure-1

ANALYSIS:

The study reveals that 100% respondents wear jewellery whereas just 0% doesn’t
wear the jewellery.

34
Interpretation: Most of the people prefer to wear Jewellery.

Q.2 How frequently do you purchase jewellery?

Options No. of Respondents %age

Once in a long time 20 20%
Once in a year 50 50%
Whenever any occasion comes 30 30%
up

Whenever any occasion Once in a long time

comes up 20%
30%

Once in a year
50%

35
 Figure-2

ANALYSIS:

The study reveals that 50% respondents of the buy jewellery in a year and 30% respondents buy
whenever any occasion comes up whereas remaining 20% respondents buy in a long time.

INTERPRETATION: Majority of the respondents buy jewellery once in a year.

Q.3 From where do you prefer purchasing jewellery?

Options No. of Respondents %age

Local Dealers 30 30%
Brands (Tanishq, D’damas, 70 70%
etc…)

No. of Respondents

Local Dealers

Brands (Tanishq, D’damas,

etc…)

Figure-3

36
ANALYSIS:

The study reveals that 70% of the respondents prefer buying branded jewellery and 30% of
the respondents prefer to purchase from Local Dealers.

INTERPRETATION:

Majority of the respondent prefer to buy branded jewellery.

Q.4 If brands, what are the factors responsible for this choice?

Options No. of Respondents %age

I can choose from a wide variety of designs 16 16%
The quality of the product is excellent 24 24%
The stores are easily accessible as they have 20 20%
their outlets as they have their outlets at many
places
They provide good exchange offers 10 10%
The jewellery is certified 30 30%
Deciding Factor

37
 35%
30%
30%
24%
25%
20%
20% 16%
15%
10%
10%
5%
0%
I can choose The quality of The stores are They provide The jew ellery is
from a w ide the product is easily good exchange certified
variety of excellent accessible as offers
designs they have their
outlets as they
have their
outlets at many
places

Figure-4

ANALYSIS: Out of 100% respondents, 30% of the respondents purchase jewellery is certified, 24%
of respondents buy jewellery when the quality of product is excellent, 20% of respondents buy
jewellery from the stores which are easily accessible, 16% of respondents choose to buy wide
varietyof designs, 10% of respondents buy jewellery where they get good exchange offers.

Interpretation: Majority of respondents prefer to buy jewellery which is certified

Q.5 If local retailers, what factors affect this decision?

Options No. of Respondents %age

I can buy the products on credit 10 10%
The store is located near my house, and so is 16 16%
easily approachable
The price are negotiable, I do not have to 14 20%
buy at the M.R.P
The products are comparatively priced low 20 20%
The retailer is very reliable as I have been 40 40%
dealing with him since a long time

38
 40%
40%
30%
20% 20%
20% 16%
10%
10%
0%

Figure-5

ANALYSIS: The study reveals that 40% of respondents buy jewellery from local retailers which are
very reliable, 20% of respondents purchase jewellery where the prices are low, 16% of respondent
purchase jewellery from the store which are located near their houses, 20% of respondents purchase
jewellery where the prices are negotiable and 10% of respondents buy the product on credit.

INTERPRETATION: The majority of respondents prefer to buy from their local retailers.

Q.6 From where did you get the knowledge about this store/ brand?

Options No. of Respondents %age

Schemes launched by the store 14 14%
Recommendations from friends/ Relatives 60 60%
Pamphlets distributed 26 26%

39
 Schemes launched by the
store
Pamphlets distributed

Recommendations from
friends/ Relatives

Figure-6

ANALYSIS:

The study reveals that 60% of respondents get knowledge from the recommendation from friend and
relatives, 26% respondents get knowledge from the pamphlets distributor, 14% of respondents get
knowledge from the scheme launched by the store.

INTERPRETATION:

Recommendation from friends and relatives contribute much more in spreading the
knowledge about the store/ brand rather than distributing pamphlets or launching schemes.

40
Q.7 If you wear branded jewellery, which brand do you prefer?

Options No. of Respondents %age

Tanishq 24 24%
PC Jewellers 36 36%
Kalyan 24 24%
Others 16 16%

Others
Tanishq

Kalyan

PC Jewellers

Figure-7

ANALYSIS:

The study reveals that 24% of respondents prefer Tanishq Jewellery followed by 36% PC jewellers,
24% Kalyan and 16% respondents prefer other brands like Asmi, Gitanjali etc.

INTERPRETATION:

Majority of respondents prefer PC Jewellers.

41
Q.8 How long have you been making your purchases of jewellery from this store/brand?

Options No. of Respondents %age

I recently started visiting this store/ brand 10 10%
From past 5 to 10 years 50 50%
Since a very long time, almost always 40 40%

I recently started visiting this

store/ brand

Since a very long time, almost

always

From past 5 to 10 years

Figure-8

ANALYSIS:

40% of respondents purchase this jewllery from this brand since a very long time, 50% of respondent
purchase from the same brand from past 5 to 10 years and 10% of respondents started visiting this
brand.

INTERPRETATION:

Majority of respondents purchase the jewellery from this brand from past 5 to 10 years.

42
Q.9 How satisfied are you with the jewellery you buy?

Options No. of Respondents %age

Very satisfied 44 44%
satisfied 48 48%
Since a very long time, almost always 8 8%
Dissatisfied 0 0%
Very dissatisfied 0 0%

Since a very long time, almost

always
8%

Very satisfied
44%

satisfied
48%

Figure-9

ANALYSIS:

The study reveals that 44% of respondent are very satisfied with the jewellery they and 48% of
respondents are satisfied and 8% of respondents are neither satisfied or dissatisfied.

43
INTERPRETATION:

Almost everyone is satisfied with the jewellery they buy.

Q.10 How important is the advertisement campaign followed by the store to make you opt
for it?

Options No. of Respondents %age

Extremely important 10 10%
Very important 22 22%
Somewhat important 20 20%
Not very important 40 40%
Not at all important 8 8%

Not at all important Extremely important

Very important

Not very important

Somewhat important

Figure-10

ANALYSIS:

20% of respondents is not affected by the advertisement campaign but on the contrary advertisement
is somewhat important for 40% of respondents and 22% of respondents is affect by the advertisement.

INTERPRETATION:

44
Majority of respondents are not affect by the advertisement.

Q.11 Does the ambience and the services provided in the store affected your purchase?

Options No. of Respondents %age

Very significantly 8 8%
Significantly 20 20%
Partially 30 30%
Neutral 32 32%
Not at all significant 10 10%

Not at all significant Very significantly

Significantly

Neutral

Partially

Figure-11

ANALYSIS:

The above chart represents that 32% of the respondents is neutrally affected by the ambience
and the services provided in the store and 30% of respondents are partially affected by the
ambience and services, 20% of respondents are significant, 10% of respondents are not

45
significant with the ambience and the services, 8% of the respondents are very significant
with the ambience & services.

INTERPRETATION:

Majority of respondents is neutrally affected by the ambiance and services provided in the
store.

Q.12 Before making any jewellery purchases, do you compare the designs and prices of the
same between the branded showrooms and the local dealers?

Options No. of Respondents %age

Always 8 8%
Often 16 16%
Sometimes 40 40%
Rarely 30 30%
Never 6 6%

Never Always

Often

Rarely

Sometimes

Figure-12

ANALYSIS:

40% of respondents are sometimes compared the prices between the branded and local dealers, 30%
of respondents rarely compare, 16% of respondents oftenly compare and 8% of respondents always

46
compare the designs and prices and 6% of respondents never compared the prices of the branded
showroom and local dealers.

INTERPRETATION:

Above graph shows that people generally do not compare the prices between branded showroom and
local dealers

47
Q.13 Do you plan to shift or change the source of purchasing jewellery?

Options No. of Respondents %age

Yes 38 38%
No 62 62%

Yes

No

Figure-13

ANALYSIS:

38% of respondents plan to shift or change the source of purchase jewellery, 62% of respondent do
not plan to shift the source of purchasing jewellery.

INTERPRETATION:

From the above data we have concluded that almost half of the population is satisfied with
their retailers and doesn't want to change.

48
CHAPTER-5
FINDINGS

49
 FINDINGS

The major findings of the report are as follows:

 From the above survey it is found that most of the people wear jewellery once in a year

 We find out that most of the respondents prefer branded jewellery.

 Most of the respondents get the knowledge of the brand from their friends and relatives.

 Majority of the respondent prefer PC Jewellers.

 We conclude that almost all the respondents are satisfied with the jewellery they buy.

 It has been observed that majority of respondents are not affected by the advertisement.

 Majority of the respondents is neutrally affected by Ambience and services provided in

the store.

 It is concluded that people generally do not compared the prices between branded
showroom and local dealers.

 We have concluded that almost half of the population is satisfied with their retailers and
doesn’t want to change.

50
CHAPTER-6
CONCLUSION

51
 CONCLUSION
We have concluded from the above study that the individuals are moving
towards brands rather than local retailers. Most of the population buys Jewellery
frequently and the reason why people going for more of branded Jewellery is the
certification of the jewellery. It is not that people are ignoring local retailers large
number of total population still demands local jewellers and the reason is the
reliability of the retailers. People generally don’t compare the prices between the
branded showroom and the local dealers. Majority of respondents are not affected by
the advertisement.

52
 CHAPTER-7
RECOMMENDATION

53
 RECOMMENDATION

 From the above analysis we have come to the conclusion that the local retailers should
adopt the certification for the jewellery they are offering to the consumers.

 They should also provide wide range of the product they are offering so that they can
capture larger share in the market.

 Branded retailers should focus on reducing the cost and try to develop the trust factor
with the consumers so that it will help them to increase there sales.

 They should target different consumer segments by introducing a low priced jewellery
range.

54
BIBLIOGRAPHY

55
 BIBLIOGRAPHY

Aaker, D.A., (1996)"Building gold ". New York: The Free Press.

Ajzen, I., &Fishbein, M. (1980). "Understanding attitudes and predicting social Behavior".
Toronto, Ontario: Prentice-Hall.

Biel, A.L. and Bridgewater, CA. (1990)."Attributes of Likeable Jewellery". Journal of

Advertising Research, 30, 3 (1990): 38-44.

Gold, P. (1987) Hand Made Artificial Jewellery: From Salesmanship to Therapy. Paragon
House Publishers, New York, NY.

Goldman, R. (1992) Rise in Demand for Artificial Jewellery (Routledge, New York, NY.

WEBSITES:

www.google.com

www.scribd.com

www.ask.com

www.slideshare.com

BOOKS

 C. R. Kothari, `Research and Methodology- Methods and Techniques`, New Age

International (p) Ltd. 2010
 C.N. Sontakki- Marketing Management

56
QUESTIONNAIRE

57
 QUESTIONNAIRE
Jewellery buying preference: Local retailers or Brands

NAME: _______________________________________________ ADDRESS

_______________________________________________

_______________________________________________

PROFESSION _______________________________________________

1. Do you wear jewellery?

a) Yes

b) No

2. How frequently do you make jewellery purchases?

a) Once in a long time

b) Once in a year

c) Whenever any occasion comes up

3. From where do you prefer purchasing jewellery?

a) Local Dealers

b) Brands (Tanishq, D'damas, etc.)

4. If brands, what are the factors responsible for this choice (one or more) ?

a) I can choose from a wide variety of designs

b) The quality of the products is excellent

c) The stores are easily accessible as they have their

outlets at many places

d) They provide good exchange offers.

e) The jewellery is certified.

58
5. If local retailers, what factors affect this decision (one or more)?

a) I can buy the products on credit.

b) The store is located near my house, and so is

easily approachable.

c) The prices are negotiable, I do not have to buy at

the M.R.P.

d) The products are comparatively priced low.

e) The retailer is very reliable as have been dealing with

him since a Long time.

6. From where did you get the knowledge of this store/brand?

a) Schemes launched by the store.

b) Recommendations from Friends/Relatives.

c) Pamphlets distributed.

7. If you wear branded jewellery, which brand do you prefer?

a) Tanishq

b) PC Jewllers

c) Kalyan Jewellers

d) Others (Please specify ……….)

8. How long have you been making your purchases of jewellery from this store/brand?

a) I recently started visiting this store / brand.

b) From past 5 to 10 years

c) Since a very long time, almost always.

9. How satisfied are you with the jewellery you buy?

a) Very satisfied

b) Satisfied

c) Neither satisfied nor dissatisfied

59
 d) Dissatisfied

e) Very dissatisfied

10. How important is the advertisement campaign followed by the store to make you opt
for it?

a) Extremely important

b) Very important

c) Somewhat important

d) Not very important

e) Not at all important

11. Does the ambience and the cervices provided in the store affect your purchase?

a) Very significantly

b) Partially

c) Neutral

d) Not At All Significant

12. Before making any jewellery purchases do yen compare the designs and prices of the
same between the branded showrooms and the local dealers?

a) Always

b) Often

c) Sometimes

d) Rarely

e) Never

13. Do you plan to shift or change the source of purchasing jewellery?

a) Yes

b) No

c) Maybe

60