Acad Writing Research Paper

Should Vardhman Jewellers invest in the physical internal expansion of the business to gain higher market
share?
FLAME
ACADEMIC WRITING
BUSINESS AND MANAGEMENT
Research Question
Should Vardhman Jewellers invest in the physical internal expansion of the business to gain
higher market share?
Semester: 1
Word Count:
Executive Summary: 200
Written Report: 1997
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Contents
Executive Summary...................................................................................................................3
Introduction................................................................................................................................4
Methodology Employed.............................................................................................................5
Main Results and Findings.........................................................................................................7
Analysis and Discussion..........................................................................................................11
SWOT Analysis....................................................................................................................11
Sales Forecasting..................................................................................................................13
Investment Appraisal............................................................................................................15
Payback period..................................................................................................................15
Average Rate of Return....................................................................................................17
Market Share Analysis.........................................................................................................18
Force Field Analysis.............................................................................................................20
Conclusion................................................................................................................................21
Recommendations....................................................................................................................21
Area of further study:...........................................................................................................22
Limitations:...........................................................................................................................22
Bibliography.............................................................................................................................23
Appendices...............................................................................................................................24
Appendix 1...........................................................................................................................24
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Appendix 2...........................................................................................................................26
Appendix 3...........................................................................................................................27
Appendix 4...........................................................................................................................29
Appendix 5...........................................................................................................................32
Appendix 6...........................................................................................................................33
Appendix 7...........................................................................................................................34
Appendix 8...........................................................................................................................34
Appendix 9...........................................................................................................................35
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Executive Summary
Vardhman Jewellers engages in the promotion, production and sales of gold, silver and
diamond jewellery. Despite the high-customer footfall, the business is seeing low-market
share and sales turnover compared to its major competitors. The major reason identified is
lack of accommodation for which the owner wants to invest in the physical internal
expansion of the business. Hence, the RQ: “Should Vardhman Jewellers invest in the
physical internal expansion of the business to gain higher market share?”
Questionnaire based surveys, interviews and telecommunication meetings were conducted
with the major primary sources which included internal and external stakeholders such as
owner, customers, employees, managers, accountant and competitors. Information collected
from surveys and interviews were utilized for SWOT analysis and the force field analysis.
Secondary data was gathered from the profit and loss account and balance sheet to forecast
future sales and market share which helped appraisal of the investment and market share
analysis. However, the time period for which I could conduct the surveys was limited due the
coronavirus pandemic.
After brainstorming and pondering upon the factors for and against decision, it was
concluded that Vardhman Jewellers should invest in the physical internal expansion of the
business to gain higher market share.
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Introduction
Vardhman Jewellers is a business run by a sole trader meaning the owner is liable for his
business’s debts. Vardhman Jewellers engages in the promotion, production and sales of
gold, silver and diamond jewellery.1 The business currently focuses on improving their
marketing strategies to attract new customers through advertisements in newspapers,
magazines, hoardings. The business also runs multiple exhibitions in the district from time to
time to advertise and showcase their jewellery artifacts to increase brand awareness. 2 The
jewellery store can currently accommodate 30 customers comfortably at a time, which due to
rapid growth over the past few years, cannot cater to the increasing number of customers
leading to low-sales turnover for Vardhman Jewellers. The owner is considering investing in
the physical internal expansion of the business to gain higher market share. 3 Hence, this IA
aims to answer the RQ: “Should Vardhman Jewellers invest in the physical internal
expansion of the business to gain higher market share?”
1
Refer to appendix 1, Q1
2
3
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Methodology Employed
Primary Research
Designation Methodology employed Data collection
Owner Questionnaire based Overview of business,
interview (video- problem faced, anticipated
conferencing) reasons, possible solutions,
objective
Employees In-person interview Familiarising with
organisation, their opinion
on problem, customer
behaviour
Accountant Interview (on-call) Firm’s final accounts
Manager In-person Interview Marketing strategies
Customers Pre-structured survey Their opinion
Major competitors Telephonic calls Details of their final
accounts
The nationwide lockdown due to Coronavirus pandemic hindered the research for I had to
switch to various alternatives of in-person meetings.
Secondary Research
The final accounts of Vardhman Jewellers and its major competitors.
General data from credible websites and newspapers has been used.
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Tools used:
Tools like, SWOT, Sale forecasting, Investment appraisal, market share and force field
analysis was used.
Reflective Thinking
I have used multiple sources of data making the room for error and bias smaller. The data
collected is valid as the surveys were filled by customers who came to the store (people who
didn’t buy anything were also a part of the surveys) and the interviews and questionnaires
were conducted by me with individual employees. However, the employees could be biased
towards their employer and might have given misleading information.
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Main Results and Findings
Jewellery Sales in City (₹ Crores) (2021)

160 150
120
120
80 50
40 15 15
0
er
s
er
s af ra
f
er
s
ell ell S ar Sa th
Je
w
Je
w
nlal ath
O
a n
an PC oh ga
n
m Ja
dh M l
V
ar n ath rela
n a
aga Py
J
Sales (2021)
Figure 1 Annual turnover of VJ and major competitors4
Average Daily Foot Traffic of Jewellery Stores in City

(2020)
60
60 50
40 30
20 5
0
s s f f
er er ra ra
ell ell S a Sa
Je
w
Je
w al ath
anl n
an PC oh ga
n
m Ja
dh th
M l
ar na ela
V n ar
ga Py
Ja
Average Foot Traffic (2020)
Figure 2 Average Customer Footfall in 2020 of VJ and major competitors5
4
Refer to appendix 2, appendix 3- Q2
5
Refer to appendix 3- Q3
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VJ's Annual Turnover Year Ended in

₹ Crores
16 15
14 13.3
12 11
10 8.73
8
6
4 2.92
2
0
2017 2018 2019 2020 2021*
Annual Turnover
Figure 3 VJ's annual turnover report. *Predicted by owner
VJ's Net Profit Year Ended in ₹lacs

30
25
25
20 18.8
14.62
15
11.52
10.2
10
0
2017 2018 2019 2020 2021*
Net profit
Figure 4 Net profit figures.6 *Predicted by owner7
6
Refer to appendix 4
7
Refer to appendix 1- Q5
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Problems that customers faced at Vardhman Jewellers

(percentages)
33.36
7
4.29
43.697
27.7
6.72 4.2
Issues with staff Accommodation Low-quality products Limited variety

Satisfied Lack of parking space Expensive Other
Figure 5 Problems faced by customers8
How customers got to know about VJ

5%12%
38%
39%
6%
TV Newspaper Exhibition
Friends/relatives Other
Figure 6 How customers got to know about VJ.9
8
Refer to appendix 5
9
Refer to appendix 5
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Major information regarding investment:
 Expansion planned in 202110
 Cost of investment: ₹6 crores11
 Current store area: 600 sq. ft (2 floors)
After expansion area: 3000 sq. ft (1 floor)12
 Current accommodation: 30
Accommodation after: 19513
 Capital to be employed:14
o Loan capital: ₹3 crores at 7.2% interest rate15
o Personal assets: ₹2 crores
o Accumulated retained profit: ₹1 crore
 Life span of expansion: 9 years16
 Savings account interest rate: 3%17
 For year 2021:
o Estimated turnover ≈ ₹15 crores
o Estimated net profit ≈ ₹25 lacs
 Growth rate after expansion:18
o 100% in year 1
o 25% in subsequent years

10
Refer to appendix 1, Q-6
11
12
13
14
15
16
17
18
Refer to appendix 1, Q- 14
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Analysis and Discussion
SWOT Analysis
Swot analysis19 is a decision-making tool and is used to assess VJ’s internal strengths and
weaknesses and external opportunities and threats that affect VJ’s market share. 20 SWOT
analysis was used to look deeper into the organisation and find and compare undermined
internal and external factors contributing to VJ’s low-turnovers.
VJ being the first jewellery store to officially get certified by the Bureau of Indian Standards21
in the region and to collab with nationwide popular jewellery brand BLUESTONE, added to
VJ’s brand awareness and image. Fig.7 implies the strong and effective word-of-mouth and
ATL promotion. The identified strengths such as incredible customer service,22 effective
promotional activities and competitive pricing23 corroborate VJ having such high customer
footfall. The store being at a pinch-point 24 contributes to the high customer footfall at the
same time causing problem of parking25 for the customers. The nearby land/shops are
expensive increasing the cost of investment. 26 The increasing interest rates27 as well could
increase the cost of investment. Every 6 months, VJ conducts a survey to refresh its product
mix in accordance with the market behaviour and requirements. 28 VJ constantly updates its
stock to meet the fast-changing customer requirements. Targeting wedding customers should
19
For the complete and segregated SWOT table, refer to appendix 9
20
BUSINESS MANAGEMENT 4TH EDITION, by PAUL HOANG, IBID Press, 2018, pp. 42–44.
21
22
Refer to appendix 5
23
Refer to appendix 5
24
25
Refer to appendix 7, 5
26
27
Kumar, Naveen. “Interest Rates on FDs, Loans May Go up Due to CRR Hike in Coming Months.” The Economic
Times, Economic Times, 5 Feb. 2021, economictimes.indiatimes.com/wealth/save/interest-rates-on-fds-loans-may-
go-up-due-to-crr-hike-in-coming-months/articleshow/80701602.cms?from=mdr.
28
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be a priority as they make huge purchases. With effective marketing mix, customers are being
drawn, but without sufficient accommodation and parking problem, customers leave
unsatisfied without purchasing signifying the lower turnover. VJ is losing on its potential
customers who after seeing the jam-packed store, do not enter and turn to competition. The
business could choose to relocate to a new location, but the investment risk is too high. With
the increasing gold prices,29 the COGS expenditure of the business has increased but has
brought with it increased customer footfall.30 Parking lot to some extent can solve the
problem but cannot promise increased sales or market share.
Hence, the major cause of low-turnover is lack of sufficient accommodation and can be
solved largely by internal physical expansion. However, the increasing interest rates could
cause problem for VJ even with the strong financial standing. The pace of change questions
the accuracy or relevance of data used.
Next, the quantitative aspect of the decision has been evaluated.
29
“Gold Price Rose 28% in 2020; Check out Targets for next Year.” Business Today, 31 Dec. 2020,
www.businesstoday.in/markets/commodities/gold-price-rose-28-in-2020-check-out-targets-for-next-year/story/
426633.html.
30
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Sales Forecasting
Sales forecasting is a quantitative technique to predict a business’ level of sales during a
given period of time.31
VJ's Annual Turnover Year Ended (₹crores)

80 73.2
70
58.6
60
50 46.9
40 37.5
30
30
20 13.3 15
8.73 11
10 2.92
0
2017 2018 2019 2020 2021* 2022 2023 2024 2025 2026
Annual Turnover Forecasted figures
Figure 7 Sales forecasting based on owner's predictions.32
Net Profit Forecasting (₹lacs)

350
298.02
300
250 238.42
200 190.73
152.59
150 122.07
97.66
100 78.13
62.5
50
50 18.8 25
10.2 11.52 14.62
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Net profit Forecasted figures
Figure 8 Net profit forecasting based on predictions by owner.33

31
BUSINESS MANAGEMENT 4TH EDITION, by PAUL HOANG, IBID Press, 2018, pp. 395.
32
Refer to appendix 2, Refer to appendix 1, Q- 14
33
Refer to appendix 2, Refer to appendix 1, Q- 14
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The growth rate after 2018 has pretty much been flat due to the accommodation problem.
However, after the expansion in 2021, sales and profit are forecasted to rapidly grow. The
owner used Market Research technique to come up with the predicted growth rate of 100% in
year 1 and 25% for the subsequent years. Market research refers to identifying purchasing
patterns of customers to forecast sales and profits. 34 However, market behaviour is subject to
change over time which raises uncertainties. Using the forecasted figures, investment
appraisal techniques shall be used to justify the investment.
34
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Investment Appraisal
Payback period
PBP is the amount of time required to earn profit equal to the initial cost of investment.35
( Initial investment cost )

PBP=
contribution per month
Net cash inflow (₹lacs) Cumulative cash inflow
(₹lacs)
2021 (year 0) (600) (600)
2022 (year 1) 50 (550)
2023 (year 2) 62.5 (487.5)
2024 (year 3) 78.1 (409.37)
2025 (year 4) 97.66 (311.71)
2026 (year 5) 122.07 (189.64)
2027 (year 6) 152.59 (37.05)
2028 (year 7) 190.73 153.68
2029 (year 8) 238.42 392.1
2030 (year 9) 298.02 690.12
Figure 9 Payback period36
35
36
Refer to appendix 2 and 3
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The business breaks-even in 2028. The shortfall at the end of year 2027 is ₹37.05 lacs.
Average monthly cash inflow in 2028=
190.73
=₹ 15.89 Lacs
12
Number of months=
Shortfall
Monthly cash inflow ( break−even year )
37.05
=2.3 months
15.89
Or,
≈ 3 months
Therefore, the payback period for the expansion is expected to be around 7 years and 3
months. The investment entails with it high risk as the PBP is way too much. However, the
timeline of returns cannot dictate its benefits. The investment brings an increase in net profit
by over 1000% in 9 years. Hence, VJ should invest in physical internal expansion of the
business according to the PBP. However, Jewellery business is highly seasonal37 which
questions the accuracy of PBP.
37
NewIndianXpress. “Thanks to Festival Season, Jewellers Witness Increase in Sales.” The New Indian Express, The
New Indian Express, 25 Oct. 2019, www.newindianexpress.com/business/2019/oct/25/thanks-to-festival-season-
jewellers-witness-increase-in-sales-2052982.html.
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Average Rate of Return
To calculate the average profit of investment as a percentage of amount invested, ARR has
been used.38
ARR =
( Total profit during projec t ' s lifespan )

number of years of project
∗100
Initial amount invested
Net profit in 9 years = ₹690.12 lacs
Or,
≈ ₹6.9 crores
ARR=
6.9
9
∗100=12.78 %
6
Therefore, each year VJ is predicted receive 12.78% on an average of the amount invested
during the life span of the expansion. Subtracting the 3% interest rate from savings, the real
ARR becomes 9.78%, which is worth taking the risk considering the existing store is
reaching its growth potential. However, the low-ARR could cause the business to deplete its
working capital for daily expenses. The lifespan of the investment has been deduced by the
owner using past expansions as basis.
38
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Market Share Analysis
Market share (2021) (percentages)
4.29
4.29
14.29
34.29
42.86
Vardhman Jewellers PC Jewellers Jagannath Mohanlal Saraf

Pyarelal Jagannath Saraf Others
Figure 10 Market share of jewellery businesses in local market based on Fig.1.39
Market Share VJ (Extrapolation)

6
5
4
3
2
1
0
2017 2018 2019 2020 2021 2022 2023 2024 2025
Market share Extrapolation
Figure 11 Market share extrapolation.
39
Refer to appendix 8
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Using Fig.12, the market concentration of regional jewellery market can be found. Market
concentration is used to measure the degree of competition within jewellery market in city of
operation of the largest 3 firms.40
Concentration ratio (largest 3 firms) =
42.86 +14.29+34.29
¿ 91.44 %
The 3-firm concentration ratio41 of 91.44% means the top three firms of the market have a
combined market share of 91.44%. This signifies that the market is highly competitive as VJ
all other businesses only account for 8.56% of jewellery sales. Even though the market is
highly competitive, VJ has a such high customer footfall. Still, has a low-market share of
4.29% in 2021. The extrapolation shows how the market share is expected to grow bit-by-bit
in the coming years. Extrapolation is a forecasting technique that uses past data to extend the
trend to predict future outcomes.42 The gradual increase signifies almost equal growth in
market leaders and the store reaching its potential majorly due to the lack of accommodation.
The current growth rate is unapt and can improve with the investment as we can see rapid
growth in sales forecasting.
40
41
42
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Force Field Analysis
Force field analysis has been used to determine and weigh the driving and restraining forces
of the decision under consideration.43
Figure 12 Force field analysis
Fig.14 suggests that the driving forces outweigh the restraining forces suggesting VJ should
invest in physical expansion of the business. VJ can use this data to improve on the driving
forces and shrink the restraining forces to make the decision even more certain. The data
collected has been brainstormed and pondered with the employees and managers of the
business to ensure the weighting is to a good extent accurate. However, not all relevant forces
might be considered due to the paucity of time.
43
BUSINESS MANAGEMENT 4TH EDITION, by PAUL HOANG, IBID Press, 2018, pp. 109-110.
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Conclusion
All the tools used provide indications that substantially support Vardhman Jeweller’s
decision to invest in the physical internal expansion of the business to gain higher market
share. SWOT analysis implies the importance of this expansion for Vardhman Jewellers at
the same time providing insights into other factors hindering VJ’s growth. The investment
appraisal done using the forecasted figures suggests low and delayed returns; however, the up
thrust of profits brought by the investment cannot be ignored. Also, as suggested by the
market share analysis, Vardhman Jewellers is expected to see flat growth rates in the coming
years if they decide not to invest. At last, consolidating and segregating all the factors into
driving and restraining forces and weighing them, we can conclude that Vardhman Jewellers
should invest in the physical internal expansion of the business to gain higher market share.
Recommendations
1. As per the above conclusion the business should invest in the physical internal
expansion. However, for this to be successful, the business also needs to focus on
countering the key weaknesses and threats identified in the SWOT analysis such as
parking space problem and fierce competition to ensure continued increase in sales.
2. Even though financing the investment is a cinch for the business, the problem with
such high investment and low-ARR is that the business could deprive itself of its
working capital hindering the daily functioning of the business. Hence, it is
recommendable for VJ to look into short-term sources of finance such as trade credit.
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Area of further study:
The firm should see the possible & suitable sources of finance to invest in this expansion and
what marketing strategy should be used for this internal expansion.
Limitations:
Due to Covid-19, major limitations were observed while conducting surveys and interviews.
It was challenging to get appropriate feedback from respondents and some delays were
observed for my primary data collection due to nationwide lockdown. Covid-19 has also
impacted the spending pattern of people due to fear and may have impacted their decision to
buy jewellery.
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Bibliography
“Gold Price Rose 28% in 2020; Check out Targets for next Year.” Business Today, 31 Dec.
2020, www.businesstoday.in/markets/commodities/gold-price-rose-28-in-2020-check-
out-targets-for-next-year/story/426633.html.
“Online Jewellery Shopping Store India: Buy Gold and Diamond Jewellery with Latest
Designs 2021.” BlueStone, www.bluestone.com/.
Dsouza@sharleendsouzaBookmark, Sharleen, et al. “Titan's Jewellery Business Enters
Growth Phase On Weddings, Festive Demand.” BloombergQuint, 6 Jan. 2021,
www.bloombergquint.com/business/titans-jewellery-business-enters-growth-phase-on-
weddings-festive-demand.
“The Rise of Fast Fashion.” Edology, www.edology.com/blog/fashion-media/rise-of-fast-
fashion/.
Contributors, Et. “Why Gold Is Not a Good Investment.” The Economic Times, Economic
Times, 26 June 2017, economictimes.indiatimes.com/wealth/invest/why-gold-is-not-a-
good-investment/articleshow/59296448.cms?from=mdr.
Kumar, Naveen. “Interest Rates on FDs, Loans May Go up Due to CRR Hike in Coming
Months.” The Economic Times, Economic Times, 5 Feb. 2021,
economictimes.indiatimes.com/wealth/save/interest-rates-on-fds-loans-may-go-up-due-to-crr-
hike-in-coming-months/articleshow/80701602.cms?from=mdr.
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Appendices
Appendix 1
Interview with the owner
1. What are the business’ aims? Who owns the business? What problem are you facing?
The business currently operates in a small city and focuses on making, promoting and
selling gold, silver and diamond jewellery. I am the sole proprietor of the business.
We have the second highest customer footfall in the town; however, our sales revenue
is much lower than that of other competitors.
2. What are your current marketing strategies?
We advertise in newspaper, magazines, hoardings and run various exhibitions.
3. What reason have you identified for the low-sales and how do you plan to counter it?
Everyday the number of customer foot traffic is too high due to which the store is
jam-packed at almost all times due to which the accommodation of the store is no
longer sufficient. To tackle the problem, I want to expand the size of the store to
comfortably accommodate more people.
4. Who are your major competitors?
PC Jewellers, Jagannath Mohanlal Saraf and Pyarelal Jagannath Saraf.
5. How much do you think will your turnover and net profit will be in year ended 31
march 2021?
I expect it to be around 25 Crores. As of now (December), we have sales of 12 crores,
so I expect the sales turnover to be around 25 crores and the net profit to be around 25
lacs.
6. When do you want the expansion to take place?
Around summer time in 2021.
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7. How much will the expansion cost and how do you plan to finance it?
The cost of investment is expected to be around 6 crores. I plan to finance it by taking
a loan of 3 crores, selling other land owned by me worth 2 crores and the remaining 1
crore shall come from the business itself. Most of the investment goes into stock and
land. Land is expensive in this area because of the market being a pinch point and
shoplifting being low. However, finance is no issue as the banks are happy to lend us
a loan much higher than required. Also, personal assets can be sold in case of
emergency.
8. How many customers can the store currently accommodate and how many will it be
able to accommodate after the expansion?
The store can currently comfortably accommodate 30 customers at a time. After the
expansion, the store will be able to accommodate 195 customers at a time.
9. What is the area of the store right now and by how much do you plan to expand it?
The current area of the shop is 600 sq. ft with 2 operational floors. After the
expansion the area will be 3000 sq. ft with 1 operation floor. I plan to diversify on the
second floor after the expansion.
10. How long do you think before you will need to re-expand?
Based on past experience, the expansion should last around 9 years as no expansion
before has lasted more than 9 years.
11. What sets your business apart from its competitors?
We are the first jewellers in the city to be certified by the Bureau of Indian Standards
and BLUESTONE.
12. How have your past expansions been?
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Past expansions have not done so well as the expansion soon unable to properly
accommodate customers comfortably in a short amount of time.
13. What are your thoughts on increasing gold rates?
Even though the gold rates have been increasing over the years constantly, it has also
added to increased customer footfall.
14. How much do you expect the business to grow after expansion?
I have predicted a growth rate of 100% in the first year and 25% in the subsequent
years.
15. How do you see your product mix?
Every 6 months, we conduct a survey to find out customer preferences or changes in
fashion to constantly provide our customers with the latest jewellery artifacts.
Appendix 2
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Appendix 3
Interview with the competitors on phone calls
1. How do you see Vardhman Jewellers as your competitor?
PCJ owner: I respect Vardhman Jeweller’s owner because he has been very helpful
and cooperating in tough times such as at the time of lockdown and excise tax strikes.
JMS owner: The way VJ has emerged from nothing is commendable.
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PJS: VJ is well deserving as their social service is beyond comprehension.
2. What was your average sales turnover at the year ended on 31 March, 2020?
PCJ: 15 crores
JMS: 50 crores
PJS: 150 crores
3. What was your average daily customer footfall in the year 2020?
PCJ: on an average 5 customers walked in the store daily in the year 2020.
JMS: 30 customers daily
PJS: around 60 customers daily
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Appendix 4
Figure 13 Official financial records at the end of the fiscal year 2017
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Appendix 5
Figure 16 Survey conducted with the customers
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Figure 17 Some of the major data that was recorded.
Appendix 6
Phone call with the accountant
1. Why is the net profit so low with the sales revenue being so high?
A major portion of the sales revenue goes into the salary of the employees and the
promotion which is why the net profit is much lower than expected.
2. What is the interest rate at which VJ will have to pay on a loan of 3 crores?
7.2%
3. What is the interest rate received by VJ in its savings account?
3%
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Appendix 7
Appendix 8
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Appendix 9
STRENGTHS WEAKNESSES OPPORTUNITIES THREATS
Hallmark jewellery Future planning is Expand the business Coronavirus
and easy returns.44 weak51 Re-locate pandemic: gold
Incredible post and Lack of Buy a parking lot prices rose 28% in
before-sale customer accommodation Increase variety of 2020.55
service.45 Less parking space52 jewellery Poor location- small
Fitting product Location loss: Wedding district- growth
mix.46 nearby land/shops customers54 potential limited
Competitive are expensive,53 High competition
pricing47 limited growth from branded and
Strong financing48 opportunities traditional
Location benefits: Limited national jewellers56
pinch point, presence Dynamic fashion
shoplifting is low49 trends57
Effective Competition
promotional drawing away
activities customers
Skilled employees People no longer
Collaboration with feel safe investing in
44
45
Refer to appendix 5
46
Refer to appendix 5
47
Refer to appendix 5
48
49
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BLUESTONE.50 gold.58
Increasing interest
rates.59
Figure 18 Swot Analysis of Vardhman Jewellers
50
“Online Jewellery Shopping Store India: Buy Gold and Diamond Jewellery with Latest Designs 2021.” BlueStone,
www.bluestone.com/.
, Refer to appendix 1, Q-11
57
“The Rise of Fast Fashion.” Edology, www.edology.com/blog/fashion-media/rise-of-fast-fashion/.
56
Refer to appendix 1- Q4, appendix 3- Q-2
55
“Gold Price Rose 28% in 2020; Check out Targets for next Year.” Business Today, 31 Dec. 2020,
www.businesstoday.in/markets/commodities/gold-price-rose-28-in-2020-check-out-targets-for-next-year/story/
426633.html.
54
Dsouza@sharleendsouzaBookmark, Sharleen, et al. “Titan's Jewellery Business Enters Growth Phase On
Weddings, Festive Demand.” BloombergQuint, 6 Jan. 2021, www.bloombergquint.com/business/titans-jewellery-
business-enters-growth-phase-on-weddings-festive-demand.
53
52
Refer to appendix 7, 5
51
58
Contributors, Et. “Why Gold Is Not a Good Investment.” The Economic Times, Economic Times, 26 June 2017,
economictimes.indiatimes.com/wealth/invest/why-gold-is-not-a-good-investment/articleshow/59296448.cms?
from=mdr.
59
Kumar, Naveen. “Interest Rates on FDs, Loans May Go up Due to CRR Hike in Coming Months.” The Economic
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Should Vardhman Jewellers invest in the physical internal expansion of the business to gain higher market

BUSINESS AND MANAGEMENT

higher market share?

Executive Summary: 200

Written Report: 1997

Main Results and Findings.........................................................................................................7

Analysis and Discussion..........................................................................................................11

Average Rate of Return....................................................................................................17

Market Share Analysis.........................................................................................................18

Force Field Analysis.............................................................................................................20

Area of further study:...........................................................................................................22

physical internal expansion of the business to gain higher market share?”

Questionnaire based surveys, interviews and telecommunication meetings were conducted

owner, customers, employees, managers, accountant and competitors. Information collected

business to gain higher market share.

marketing strategies to attract new customers through advertisements in newspapers,

expansion of the business to gain higher market share?”

Designation Methodology employed Data collection

Owner Questionnaire based Overview of business,

interview (video- problem faced, anticipated

conferencing) reasons, possible solutions,

Employees In-person interview Familiarising with

organisation, their opinion

Accountant Interview (on-call) Firm’s final accounts

Manager In-person Interview Marketing strategies

Customers Pre-structured survey Their opinion

Major competitors Telephonic calls Details of their final

switch to various alternatives of in-person meetings.

The final accounts of Vardhman Jewellers and its major competitors.

analysis was used.

towards their employer and might have given misleading information.

Main Results and Findings

Jewellery Sales in City (₹ Crores) (2021)

Figure 1 Annual turnover of VJ and major competitors4

Average Daily Foot Traffic of Jewellery Stores in City

Average Foot Traffic (2020)

Figure 2 Average Customer Footfall in 2020 of VJ and major competitors5

VJ's Annual Turnover Year Ended in

Figure 3 VJ's annual turnover report. *Predicted by owner

VJ's Net Profit Year Ended in ₹lacs

Figure 4 Net profit figures.6 *Predicted by owner7

Problems that customers faced at Vardhman Jewellers

Issues with staff Accommodation Low-quality products Limited variety

Figure 5 Problems faced by customers8

How customers got to know about VJ

Figure 6 How customers got to know about VJ.9

Major information regarding investment:

 Expansion planned in 202110

 Cost of investment: ₹6 crores11

 Current store area: 600 sq. ft (2 floors)

After expansion area: 3000 sq. ft (1 floor)12

Accommodation after: 19513

o Loan capital: ₹3 crores at 7.2% interest rate15

o Personal assets: ₹2 crores

o Accumulated retained profit: ₹1 crore

 Life span of expansion: 9 years16

 Savings account interest rate: 3%17

 For year 2021:

o Estimated turnover ≈ ₹15 crores

o Estimated net profit ≈ ₹25 lacs

 Growth rate after expansion:18

o 25% in subsequent years

Analysis and Discussion

internal and external factors contributing to VJ’s low-turnovers.