GERALD GEMS & JEWELERS (GGJ)

(Marketing Plan & Strategies)

Executive Summary

GGJ is a dealer of unique titanium, gold and diamond jewelries. Roland Jewelry distributes many designs
in the forms of earrings, pins, chains, rings and pendants. All of the products are designed and
manufactured by Mouawad Jewelry & Watches, UAE.

Each piece of jewelry is a work of art in itself, very special and unique. Roland Jewelry will be selling
directly to end consumers through its official website as well as at exhibitions/shows. GGJ will also use
galleries, museum shops, and specialty jewelry retailers as a distribution channel as well.

For the first eight months, GGJ will be a one-man show and will welcome an independent sales
representative on month eight. This is to allow space for buildup.

Situation Analysis

GGJ is a start-up company operating out of the owner’s home. Marketing will be key to raise visibility and
awareness of GGJ and their products.

The basic market needs is unusual pieces of art jewelry crafted out of gold, diamond or titanium.
Titanium is used because of its hypoallergenic qualities (ideal for necklaces and earrings that touch the
skin), its incredible strength, and light weight.

Market Summary

GGJ has a lot of information regarding the market and attributes concerning their target customers. This
information will be leveraged to continually determine who the customer is, their specific needs and
how GGJ can best communicate with them.

Market Needs

GGJ is providing its customers with innovative, creative, handmade jewelry. It will provide the following
benefits to their customers:

* Selection: A wide range of jewelry styles, creations and anodizing schemes.

* Accessibility: Sells direct to the consumer through a network of art/jewelry galleries, and at art fairs
and shows, while also maintaining their official exhibition center and other sales point.
* Customer Service: The patron will be impressed with the level of attention and service that he receive.
This level of service occurs during all transactions with Roland Jewelry from answering questions, to
order taking, to warranty repairs.

* Competitive Pricing: The pricing structure provides the consumer with a good value for handmade
jewelry and the craftsmen with a fair profit.

* Market Trends: The market trend within the jewelry industry is a movement toward custom, unique
pieces as well as limited production items. This trend is in response to the climate of the industry in the
mid-nineties where the jewelry market was flooded with thousands of identical pieces of jewelry. Within
a few years, people were running into otherswho had the same piece of jewelry. This element of
commonality or "run of the mill-ness" fueled demand for artisticjewelry that was in low production and
unique, not something that you would see often.

Customers are using similar pieces of jewelry as a way of creating distinction from the common
population, a way to stand out. This desire is a part of a broader desire to be different. GGJ has leveraged
this trend by distributing unique pieces that are distinct.

Market Growth

The artistic jewelry segment of the larger jewelry industry is growing at a healthy 9%. This growth can be
attributed to the value that people place on having distinctive, unique pieces of jewelry.

Another factor that is supporting the growth is the blending of art and jewelry. Traditionally jewelry was
ornate pieces made out of precious metals. The nice pieces were a symbol of wealth or status. As long as
the piece was made out of a precious metal, there was value attributed to the piece just by virtue of
what it was made out of, regardless of thecreativity of the actual piece. The younger population that
recognizes the aesthetic value of art work is now demanding jewelry to have artistic elements. In
essence it is art that you wear. These trends are helping the industry grow.

SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the company, and
describes the opportunities and threats facing GGJ.

Strengths:

* Unique designs and construction methods.

* Strong relationships with suppliers as well as galleries.

* The flexibility to provide custom pieces.

* A comprehensive distribution network from a robust website and a network of galleries.

Weaknesses:

* A large portion of the target market that is unaware of Roland Jewelry products.

* Limited time and budget to market the company to the segmented target population.

* The struggle to constantly create new designs.

* The possible inability to meet demand due to the small size of the company.

* Opportunities

* A growing market that, to a large degree, is unaware of Roland Jewelry.

* The possibility to grow the size of the company so Steve is spending his time creating and allowing
others to deal with the administrative details.

* The injection of fresh, creative designs in a somewhat stagnant industry.

Threats:

* A decrease of availability of raw materials due to demand from other industries.

* Artistic copycats that enter the market and mimic Roland Jewelry designs.

* A slowdown of the economy that will have a reduction on individual's discretionary income.

* Competition and Buying Patterns

As previously stated the jewelry industry is composed of thousands upon thousands of people. Some
work and distribute locally, others have national distribution systems set up. Some artists will design
products for larger companies to manufacture; others will design and make the pieces themselves. This
plan will have an abridged competition section. This is because of the very large and distributed nature
of artisan jewelry design, the market is entirely too dispersed to have a complete catalog of the
competition.

Competition takes the following forms:

Artists creating designs that are manufactured on a large scale and distributed nationally. The artists
might be famous enough to have their own one-name studio that creates designs and the product is
made and sold under the larger companies’ name. If the artist is not famous enough to have national
name recognition, the designers might belong to a firm that is hired to develop designs for a company
who will manufacture and sell the product.

A company that has their own designers in-house. In this case everything is done internally, design,
marketing and wholesaling. Another variation would be in-house designers, marketers and wholesalers
with the manufacturing contracted out.

The buying patterns of consumers fall typically into two types. Gifts and impulse purchases. A gift
purchase occurs when the buyer is looking for a gift for someone, sees the art piece, and then purchases
it. In this case the plan is to make a purchase, it is just not known what or where that purchase will be
made. The other buying pattern is an impulse purchase. Someone will be shopping; they are not in need
of anything, will see the item and have to have it, buying it on the spot.

One last pattern that occurs less frequently is if someone was looking for an "accessory" that would
match an outfit and happens to come across the piece of jewelry and buys it.

Marketing Strategy

GGJ will rely on three forms of marketing activities. The first will be attendance (including promotion
with a booth) at the various art shows and festivals throughout the country. This form of
marketing/promotion is an efficient way to reach target customers as well as generate sales at these
events.

A second form of marketing is the use of the website which will be a source to disseminate information,
increase visibility, and process orders. The website will be submitted to various search engines so people
that are not even looking specifically for GGJ will come across the site.

A third source of marketing will be networking and promotion through the network of art/jewelry
galleries. Initially, the owner will be generating relationships with galleries. Roland Jewelry will visit
numerous galleries in many major cities and recruit them to sell their product. While the margins are
smaller than if Roland Jewelry only sells the piece direct, the galleries will help significantly increase the
volume of sales.

Mission

The mission of GGJ is to make innovative pieces of art in jewelry using authentic gold, diamond, and
titanium.

We exist to attract and maintain customers through creative designs and customer attention. When we
adhere to this

maxim, everything else will fall into place. Our services will exceed the expectations of our customers.

Marketing Objectives

* Increase the number of participating galleries by 8% a quarter after year one.

* Increase Web traffic and sales by 5% each month.

* Increase the amount of sales relative to marketing expenses steadily every quarter.

* Financial Objectives

* A 15% increase in productivity.

* A decrease in variable costs through operating efficiencies.

* An increase in sales, enough to warrant the hiring of additional people to take on administrative
details, allowing designers to concentrate on his art work.

Target Markets

GGJ will be focusing on two distinct groups of customers: the end consumer, and galleries (galleries to be
used as a distribution channel). The end consumer will be interacting with the owner via website as well
as through personal contact at exhibitions/shows. The galleries (also museum shops, jewelry stores) will
also be met through the exhibitions and shows. At these events a long-term relationship will be entered
into so that the shops become a retail distribution channel for Roland Jewelry. Additionally, Roland
Jewelry will be traveling the countries around the globe meeting with different galleries and setting up
retailing relationships with them.

Positioning

GGJ will position itself as a creative distributor of artistic gold, diamond and titanium jewelry. Collectors
of artistic jewelry will appreciate Roland Jewelry's unique approach to wearable art.

GGJ will leverage its competitive edge:

It is based on creative, unusual designs. While this strategy can be replicated, it is not easy. Creative,
unusual designs require skill.

Our partner Mouawad Jewelry and Watches is very skilled in what he does, and every piece that he
manufactures incorporates an element of creative, unusual, eye-catching design that stands out from
most jewelry.

Strategies

The single objective is to position GGJ as an innovative, unique artistic jeweler. This positioning is for the
entire world, and the geographic region that GGJ seeks to serve. The marketing strategy will seek to
create customer awareness regarding unique products offered, develop the customer base, and work
toward building a network of galleries as distributors.

The message that GGJ will communicate is that its a unique, custom craftsmen of artistic jewelry. This
message will be communicated through a variety of methods. The first is through promotion and sales at
various art shows and festivals throughout the country. This method will be useful as it carefully targets
one segmented target population.

Another method will be the building of a gallery network that will serve as a distributor for GGJ. Once
this is established, this will be an effective sales outlet. The last method for communicating RJ's
positioning message is through their website. This website will provide unlimited geographic coverage
and is a wealth of information regarding all of GGJ products. Additionally, it will serve as a mechanism for
order placement.

Marketing Mix

GGJ's marketing mix is comprised of the approaches to pricing, distribution, advertising and promotion,
and customer service.

Pricing: The pricing scheme will be based on the cost of the raw materials and the amount of time
required constructing the jewelry.

Financials

This section will offer a financial overview of Roland Jewelry as it related to the marketing activities. GGJ
will address break-even analysis, sales forecasts, expense forecasts, and how those link to the marketing
strategy.

Break-even Analysis

Monthly Revenue Break-even $3,411

Assumptions:

Average Percent Variable Cost 32%

Estimated Monthly Fixed Cost $3,400

Sales Forecast
The first month will be spent setting up the work quarters and building inventory. There will be no sales.
The second month will be spent traveling visiting galleries trying to set up distribution channels. There
will be no sales activity in month two as well.

Month three will mark the first month of sales activity. Owner will have been to exhibits and sold
products, as well as sales through the website. From month three on sales will increase incrementally.

Owner will be on the road usually about a week per month traveling to galleries and exhibits. This will
occur till month eight.

Month eight will mark the time when the owner will hire a sales representative to do the traveling to set
up distributors and attend exhibitions to allow owner to concentrate on his design and production
partnership. Month eight will mark a larger increase in sales.

Expense Forecast

Marketing expenses are to be budgeted accordingly:

Art shows and art festivals: these expenses will ramp up around atleast ten major shows throughout the
year.

Expenses will include travel costs, booth construction, and entry/promotion fees.

* Website: these expenses will be fairly flat the entire year and go to the maintenance of the site.

* Gallery promotion: these expenses are primarily travel and networking expenses and will vary month
to month depending when trips are scheduled.

The purpose of GGJ's marketing plan is to serve as a guide for the organization. The following areas will
be monitored to gauge performance:

* Revenue: monthly and annual.

* Expense: monthly and annual.

* Repeat business.

* Customer satisfaction.

* Word of mouth referrals

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Gerald Crews (CEO)

Gerald Gems & Jewelers