comparative analysis of consumer perception

By: Preetika Arora, 4363

PROJECT REPORT

COMPARATIVE ANALYSIS OF CONSUMER

PERCEPTION TOWARDS BRANDED AND

IMITATED JEWELLERY

Submitted to

SUBMITTED TO: KURUKSHETRA UNIVERSITY, KURUKSHETRA

FOR THE AWARD DEGREE OF

BACHELOR OF COMMERCE

WITH VOCATIONAL SUBJECT

ADVERTISEMENT AND SALES PROMOTION & SALES

MANAGEMENT

UNDER GUIDANCE OF: SUBMITTED BY:

Ms. Meenu Gulati Preetika Arora

Lecturer of Commerce, B.Com-IInd

D. A. V. College for Girls, Ynr Roll No.-4363

Univ. Roll No.____________

D. A. V. COLLEGE FOR GIRLS YAMUNA NAGAR - 135001

ACKNOWLEDGEMENT

I owe a never ending debt of gratitude to my adored

and worshipful Almighty for his grace and blessings in the

completion of this text.

My deep gratitude is due to our concerned lecturer

Ms. Meenu Gulati for their value able suggestion for my

project work which has been benefited me immensely to

complete my report work successfully.

We also thankful to Dr. Sushma Arya, Principal, of

our college for their valuable guidance. Last but not least I

will thank to all friends and family.

Preetika Arora

B.Com-IInd

CONTENTS

Topic Pg.No.

•••• INTRODUCTION

•••• Introduction to Theme

•••• Introduction to Industry Profile

•••• Significance of study

•••• Literature Review

•••• APPROACH TO STUDY

•••• Research Methodology

•••• DATABASE REPORT GATHERED

•••• Data Interpretation And Analysis

•••• FINDINGS & BIBLIOGRAPHY

•••• Limitations

•••• Recommendations

•••• Conclusions

•••• Bibliography

•••• QUESTIONNAIRE

INTRODUCTION TO THEME

Management ideas without any action based on them mean nothing. That is why

practical experience is vital for any management studies. Theoretical studies in the class

room are not sufficient to understand the functioning climate and the real problems

coming in the way of management. So, practical exposures are indispensable to such

courses. Thus, practical experience acts as a supplement to the class room studies.

This report deals comparative analysis of consumer perception towards imitation

and branded jewellery.

In the forthcoming pages, an attempt has been made to present a comprehensive

report concerning different aspect of my research report, the overall knowledge gained by

me is reflects in the report itself.

Main objective of this project is to analyze the consumer behavior towards jewellery.

What factor effects consumer purchase behavior and their choice. And which type of

jewellery consumer prefers on occasion.

INTRODUCTION TO JEWELLERY INDUSTRY

Jewellery Manufacturing started in 1400 BC in

Greece

In ancient Greece, beads shaped as natural forms like shells,

flowers and beetles were manufactured on a large scale. By

300 BC the Greeks were making multi coloured jewellery and

used emeralds, garnets, amethysts and pearls. Right - Greek earrings.

Italian Gold and Roman Coinage

Eight centuries BC the Italian Etruscans in the Tuscany region produced granulated

textured gold work. They made large fibulae or clasps, necklaces, bracelets and

earrings. The Italians are still renowned for high quality stylish trend making gold

work today. In coinage the Romans used 18 and 24 carat gold.

Gems and Pearls Real and Fake

Jewels have always been used as love tokens and whilst many pieces were fine gems

and precious metals, good fake jewellery intended to deceive existed. Flawless,

round, natural, large white pearls were prized more than precious gemstones. The

finest of pearls were provided by South India and the Persian Gulf.

Imitation Jewellery Manufacturing started in 1300 BC

Recipes for false pearls existed in 1300 when white powdered glass mixed with

albumen (egg white) and snail slime, produced beads that were used as imitation

pearls. The Italians, particularly the Venetians and people from Murano, could make

imitation glass gems and pearls that were very good likenesses of the real jewels.

Victorian Jewellery

When Queen Victoria came to the throne in 1837 jewellery was romantic and

nationalistic. It gave attention to the pressure of European folk art, which later

influenced the Arts and Crafts Movement. Until mid century most

western jewellery came from Europe, but soon jewellery began to

be made in America and Australia.

Right - Victorian garnet necklace.

Victorian women rebelled when they saw some of the machine

made jewellery on offer, although much of what has survived is of

good quality. Many wore no jewellery at all, or bought from the artist craftsman

jewellers who emerged at much the same time.

Cocktail Jewellery

In the 1920s Lalique designed good mass produced quality glass jewellery. Fake, or

costume jewellery was sometimes then called cocktail jewellery. It was greatly

influenced by Coco Chanel (1883-1971) and Elsa Schiaparelli (1890-1973). They

both encouraged clients to use costume jewellery and to mix it with genuine gem

pieces they already owned. Both designers offered imagination and fun and both

often sported fabulous fakes.

In the late 1930s Napier of the USA was at the forefront of manufacturing fake

cocktail jewels, which offered glamour and escapism. Napier still produces excellent

contemporary costume pieces.

What Factor affected the choice of Consumer in Early 90’s

In early 1940 & 1950 the factors that influenced consumer was

the influence of Hollywood and in 1980 T.V made the influence on the purchasing of

jewellery.

Hollywood Influence

By the 1940s and 1950s American culture was very dominant in Europe. The

influence of movie films and the prominence of film stars set the fashion in manners,

make-up, hair and clothes. People wanted look alike copies of outfits and jewellery

worn by screen idols.

The Second World War in Europe halted production of fine jewellery when metals

were rationed. Quality costume jewellery which was flourishing in America became

much more acceptable and was a real alternative to fine jewellery.

Because of technical advances in production methods, a huge range of styles was

available from America, and since it was so popular the market became dynamic and

inventive and affordable.

1980's Television Influence

In the 1980s there was a huge revival of costume jewellery after the glitzy scenes

from the television soap operas Dynasty and Dallas were watched by 250 million

viewers in the consumer boon of the 1980s. Diamante by day became the norm in

reality and earrings reached such huge proportions that the 1990s saw a reaction

which quickly dated lavish dress jewellery as the fashion for tiny real diamond studs

or a fine stud pearls became the only earring to wear. Now fabulous fakes, especially

brooches have gained ground once more.

1) The Oscar look! Glass 2) Blue Glass Icicles Set 3) Blue Crystals

Emerald Style Set

4) Copper and Glass 5) Swarovski Crystal 6) Vendome Amber

Collar Necklace Cherries Brooch Crystals

Jewellery for the 21st Century

Costume jewellery can enliven a fashion wardrobe and bring a dash of panache

especially for one off special occasions. Costume jewellery can be superb. The

superb is usually plated at least seven times with 18 or 22 ct gold.

BRANDED GOLD JEWELLERY MARKET IN INDIA

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.

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 Cartiers 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. 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 of the jewellery

purchased in India was designed in the traditional Indian style.

Jewellery was fabricated mainly in 18, 22 and 24-carat gold. (Refer Table I for carat

calculation) As Hallmarking was not very common in India, under-caratage was

prevalent. According to a survey done by the Bureau of Indian Standards (BIS), 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.

TABLE I

KARAT CALCULATION

24 Carat 100 percent pure gold

22 Carat 91.66 percent pure gold

18 Carat 75 percent pure gold

Source: ICFAI Center for Management Research

Indian Scenario

In the late 1990s, the Indian jewellery market witnessed a shift in consumer perceptions

of jewellery. Instead of being regarded as only an investment option, jewellery was being

prized for its aesthetic appeal. In other words, the focus seemed to have shifted from

content to design. Trendy, affordable and lightweight jewellery soon gained familiarity.

Branded jewellery also gained acceptance forcing traditional jewellers to go in for

branding.

Given the opportunities the branded jewellery market offered; the number of gold

retailers in the country increased sharply. Branded players such as Tanishq, Oyzterbay,

Gili and Carbon opened outlets in various parts of the country. Traditional jewellers

also began to bring out lightweight jewellery, and some of them even launched their in-

house brands.

INDIA is the largest consumer of gold in the world to be followed by China and Japan.

India is emerging as world's largest trading centre of this commodity with a target of

US$ 16 billion set for 2010. According to a World Gold Council press statement, in

terms of tonnage, overall consumer demand in India in 2005 witnessed 17 percent

growth over 2004. In rupee terms, this was equivalent to a 25 percent increase bringing

the value of gold demand in India to a second successive annual record. Jewellery

demand also experienced a second successive annual record of over 20 percent in rupee

terms over 2004. In terms of tonnage, the increase was 14 percent accounting 589

tonne.

According to WGC report, net retail investment was less affected by the upward price

movement and set a new annual record in tonnage terms, with a massive 34 percent

increase over 2004. A consumer survey carried out for the WGC at the end of 2005

reveals the underlying strength of Indian gold demand remains robust and is

underpinned by a strong economy and favorable demographics in gold’s key target

markets. While jewellery demand may have been constrained in the first weeks of

2006, a period of price stability is likely to see a strong level of buying once again.

The Indian Gem and Jewellery industry has witnessed 6.32 growth in exports in fiscal

2005-06 totaling at US$ 16669.11 million (Rs.73304.29 crore) against US$ 15678.14

million ( Rs 70245.95 crores) achieved in the previous fiscal.

The United States, Hong Kong and UAE were the top export markets for the Indian Gem

and Jewellery products accounting for 28 percent, 21 percent and 15 percent of the total

exports followed by Singapore and Belgium accounting for 9 percent and 8 percent

respectively. The branded jewellery segment occupied only a small share of the total

jewellery market because of the mindset of the average Indian buyer who still regarded

jewellery as an investment. Moreover, consumers trusted only their family jewellers

when buying jewellery. Consequently, the branded jewellery players tried to change the

mindset of the people and woo customers with attractive designs at affordable prices.

India's Exports of Gem & Jewellery (2006-07)

(In Rs crore)

April May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.

Cut & Polished Diamonds

2859.51 2982.57 3007.49 3035.04 3954.02 3985.53 4717.56 1959.41 2589.27 3815.72 3858.1 4904.2

Gold Jewellery 1029.26 1165.94 1146.73 1209.11 1560.94 1618.72 1823.21 1521.95 1378.97 1355.04 1281.99 1923.1

Coloured Gemstones 56.99 96.32 64.45 66.3 96.41 95.11 91.68 67.3 89.03 145.5 71.63 88.15

Pearls 1.03 0.17 1.07 1.03 1.21 0.45 2.83 1.38 1.33 0.79 1.17 1.85 Non-gold Jewellery 42.35 58.8 44.68 52.47 62.74 48.99 57.7 45.57 46.79 72.73 48.21 59.62

Synthetic Stones 0.24 0.33 0.07 0.19 0.22 0.37 0.17 0.1 0.07 0.32 0.31 0.13

TOTAL 4537.82 5396.29 5660.42 5864.34 7165.38 7148.33 7853.57 3872.34 4392.08 5749.6 5632.97 7544.37 GRAND TOTAL 4805.6 5551.36 5820.26 6058.65 7436.96 7411.93 8108.81 3967.5 4594.98 5960.29 5830.17 7757.76

SOURCE: GJEPC, India

India's Exports of Gem & Jewellery (April-October ’2008)

April-October’07 (Provisional)

April-October’07 (Same ports as current

% Growth / decline over

previous Year

Rs. US $

Rs. In Crores

US $ in Million

Rs. In Crores

US $ in Million

Cut & Pol

Diamonds 33351.37 8160.35 28796.04 6309.39 15.82 29.34

(Quantity in

Lakh Carats) 249.64 216.37 15.38

Jewellery - D.

7332.83 1794.19 7147.03 1565.95 2.60 14.58

SEZ / EPZ 5700.27 1394.73 5281.85 1157.29 7.92 20.52

Total 13033.10 3188.92 12428.88 2723.24 4.86 17.10

Coloured

Gemstones 599.53 146.69 573.28 125.61 4.58 16.78

Others 585.68 143.30 430.16 94.25 36.15 52.04

Net Exports 47569.68 11639.26 42228.37 9252.49 12.65 25.80

Exports of

Diamonds

1263.70 309.20 1296.75 284.13 -2.55 8.82

(Quantity in

Lakh Carats) 151.73 229.96 -34.02

Total Exports

48833.38 11948.46 43525.12 9536.62 12.20 25.29

Gold Jewellery Exports: This segment registered a growth of 1.28 per cent with the exports of US$ 3861.57 million in 2005-06 as against US$ 3812.88 million in 2004-05.

• Cut and Polished Diamonds: The share of this segment in the exports stood at US$ 8160.35 million (provisional) for the period April-October 2008.

• Coloured Gemstones: This segment accounted for exports worth US$ 146.69 million (provisional) for the period of April-October 2008. This segment grew by 21.05 per cent in 2005-06 at US$ 233.32 million as against US$ 192.75 million in 2004-05.

Top Export Destinations

• United States (28 percent) • Hong Kong (21 per cent) • UAE (15 per cent) • Singapore (9 per cent) • Belgium (8 Per cent)

There was a time when priceless diamond jewellery was seen only in royal portraits or

beautifully designed books and catalogues. Today, diamond sales have taken a dramatic

turnaround with branded jewellery becoming available to millions of upper middle and

middle class women. Of late, the diamond jewellery business has used several top film

stars and models to tempt men and women across the board to buy diamonds not only

during the festive season, but also throughout the year. Time was when wearing

diamonds was the prerogative of the rich and royalty. Though rubies, emeralds, sapphires

and pearls have featured with equal importance in the treasures of the nawabs,

maharajas, queens and emperors, diamonds have always grabbed the attention of the

world with their incredible, almost hypnotic beauty. No wonder then that many legends

and historical events have been recorded about celebrated diamonds, which have been the

prized possessions of famous people. An aura of mystery and magic has always

surrounded diamonds. Today however, marketing diamond-studded jewellery through

malls, department stores and chains has brought diamond jewellery within the reach of

even teenagers. Diamonds have now truly become a woman’s best friend in this part of

the world!

To brand or not to brand? That is the question. Consumer behavior across the world is

undergoing a metamorphosis and India is surely affected by this big tsunami of trends

leading to globalization of the markets. A strong management of brands will be essential

for long term success.

In India, right from manufacturing to advertising and retail branding, companies are

making a strategic shift at the right time especially when consumer trends point to a

marked growth curve for the branded segment. Although the sale of branded jewellery is

more in the urban markets there is certainly a great potential in the rural markets as well

which still remain relatively untapped.

Moreover with India witnessing a distinct change in its newly emerging lifestyle and

buying habits, consumers no longer look at jewelry as a mere investment or savings. It

has turned into a status symbol and fashion symbol as well with the market growth

drivers such as higher disposable incomes and easy credit facilities. Buying jewellery has

also become an attractive gift option. Consumers are slowly moving away from

contemporary jewelry to designer wear. The Indian consumer is now well traveled, and is

exposed to an international shopping experience

Further let’s look at some key factors influencing the jewellery retail

scenario in India.

- Diamond jewellery now is not restricted to just occasions like marriage but extends to

all modern day occasions like Valentines day, Mother’s day, Father’s day, Karva Chauth

etc. All brands are targeting on the emotional bonds of human relationships and

promoting the same accordingly, thus giving retailing jewellery in India a major boost.

- There is a marked shift in the consumer’s preferences and aspirations from gold

jewellery to diamond jewellery which is fuelled by media hype and exposure to lifestyle

and luxury products.

- With more women working in today’s scenario the positioning of diamond jewellery as

9 to 5 wearable jewellery has increased emphasis on this segment. This is further fueled

by the fact that with the number of double income households increasing this has resulted

in more disposable incomes being available.

- With more and more players being introduced in the branded jewellery segment there is

an onslaught of schemes and promotions on diamond jewellery round the year, which

gives retail a great push.

- Each brand offers value added services like certification of gold and diamonds, life time

return /buy back schemes, zero interest installments schemes which have made the

diamond jewellery more affordable than its perceived traditional image of being

expensive, thereby increasing consumption.

- To further strengthen the retail segment, most brands are getting into departmental

stores, hypermarkets, supermarkets and specialty stores. Western style malls have begun

appearing in metros and smaller cities alike, introducing the Indian consumer to a

shopping experience like never before. Besides the franchise route the counters in most

malls is another route that most of the brands are getting into which helps create a better

reach of the product.

- The opening of a number of exclusive franchise outlets, not only can provide the entire

range of jewellery under one roof but create an ambience to give consumers a total

shopping experience.

- Jewellery buying is no longer confined to seasonal cycles of marriages, and Diwali and

Christmas: anytime is a fine time and jewellery can be bought as much to express an

emotion, as to proclaim the financial status of the wearer.

- Men from metros are also donning jewellery, over and above the traditional wedding

rings and chains.

In today’s scenario focused marketing is very important creating a purpose, a definite

focus for the consumer to relate to. Brands and their branding is in effect self

explanatory. That is what focused branding is all about. In short to be able to cater to this

new retail environment the branding and marketing initiatives have to be very potent and

with a focus.

In India, women feel that diamond jewellery is more than worth it and its image strength

really is the wow factor. But the nearest competitor is still gold which is much more

attainable.

• In India, the preferred type of jewellery is undoubtedly gold jewellery at 99%, whereas

that of diamond jewellery is 67%, colored stone studded at 42% and pearl jewellery at

• Jewellery acquisition is 62% for self and 26% is for gifting.

• The place of purchase is 49% is from a big jeweler in town, 48% from a local jeweler

and only 3% from malls.

• The urban Indian diamond jewellery universe comprises of 25 million SEC A/B

women, of which 11,500 are the super elites and 0.5 million are the elite.

• Design wise, traditional designs still rule the roost, with heavy designs following

closely. However western design trends, delicate design trends and fashionable design

trends are gaining in prominence.

• Price wise, in higher value products like necklaces and sets, the average price paid for

branded jewellery is much higher than that of unbranded jewellery. Whereas, in products

such as bangles and bracelets, the average price paid for unbranded jewellery is actually

higher than branded jewellery.

• Perception wise, while 87% feel that branded jewellery is more expensive than

unbranded, 70% also feel that they cannot be cheated with brands.

Major Players

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 Jewels, a

Mumbai-based jewellery exporter, sold 18-carat gold jewellery under the brand name

Gili. Gitanjali Jewels also started selling 24-carat gold jewellery in association with a

Thai company, Pranda. Su-Raj (India) Ltd. launched its collection of diamond and 22 -

carat gold jewellery in 1997. Cartiers entered India in 1997 in a franchise agreement with

Ravissant9. Other players who entered the Indian branded gold jewellery market during

the 1990s and 2000-01 included Intergold Gem Ltd., Oyzterbay, Carbon and

Tribhovandas Bhimji Zaveri (TBZ).

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 multibrand 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.

Nakshatra was launched with celestial, evocative imagery highlighting the significance

of its design cluster. Aishwarya Rai, a contemporary fashion icon in India, was signed up

as the brand ambassador for the launch of the brand, imbuing the range with premium

imagery and style. Nakshatra today is the modern face of Indian tradition with overtones

of mysticism and symbolism.

Within the first year of its launch, Nakshatra acquired a significant market share. In the

two years since then, it has become the leading branded jewellery collection in the

country. It has achieved 93% awareness levels amongst its target audience (Source:

Global Tracking Study conducted by Research International, January 2003).

70% of retail outlets stocking Nakshatra credit the brand with playing a key role in

boosting overall diamond jewellery sales, increasing the average price of all diamond

jewellery sold and increasing consumer footfalls in the stores. This success has not gone

unrecognised.

In its first year, Nakshatra was awarded the Effie (Silver) in 2001 and in the following

year the Effie (Bronze). (The Effies are the most significant awards in advertising that

recognise effectiveness and honour tangible results). In 2003, the Nakshatra Utsav was

awarded the Best Trade Promotions award at the McDowell's Signature All-India Promo

Awards.

The brand has been consistently making news through relevant image building activities

that have enhanced its image and increased its aspirational values.

A recent study revealed that by driving desire for all kinds of diamond jewellery,

Nakshatra has arrogated a unique position in the category. It has appropriated the

physical values of quality, brilliance, radiance and clarity of the diamond category thus

creating a special niche for itself as a brand. Nakshatra is seen as celestial, ethereal and

mysterious. It is a brand that provides a special experience to the consumer.

Today, P.P. Jewellers Group is the yardstick of success. The saga of 'Rags to Riches'. The

story of Fairy tales- Unbelievable!

Yet behind every success story is mid-night oil burned, hard labour, dedication,

determination and crystalled perception of goal. Success is not a matter of chance. It is a

well-crafted destiny.

The ancient India was known to be the jewel in crown of the British. Today, P.P

.Jewellers group is the jewel in the crown of the Modem Indian. The most precious stones

in the jewel being the nine consecutive export performance awards received by them

from the Gems & Jewellery export performance council. To add beauty to the radiant

performance is the certificate for Meritorious performance in the field of exports during

the year 1995-96 and 1996-97, issued by Government of India, Ministry of Commerce

and given by the Honorary President of India, Dr.. Shanker Dayal Sharma and the Prime

minister of India Mr. Atal Bihari Bajpai. It all began in the year 1980. Shri Kamal Gupta

laid down the foundation stone of the organisation. The Group is working in style and

name of:

P.P. Jewellers A 100 % export oriented firm

P.P. Jewellers Pvt. Ltd. Showroom catering to domestic needs

P.P. Jewellers (Delhi) Showroom in the walled city of Delhi.

P.P. Jewellers (India) Showroom in old Delhi.

P.P. Jewellers (Exports) A 100% Export Oriented Unit

D'damas is part of the Gitanjali Digico Group which was established in 1966, and is

considered one of the earliest diamond houses in India. By 1968 it was accorded a Sight

by the Diamond Trading Company Ltd London and Gitanjali became one of the first

Sightholders in India. Having received over 50 National and Council awards from the

Ministry of Commerce for outstanding exports it is today one of the largest diamond

exporting companies in India.

Presently the Gitanjali Group has highly modernized diamond cutting and polishing

facilities at 5 locations in India. The Group strengthens its core business of loose

diamonds with its international association to Diminco N.V. who has globally diversified

manufacturing operations in Bangkok, Vietnam and China and a marketing network

spread across Europe, Hong Kong, USA and Japan.

The traditional role of diamond manufacturers exporting their entire production to

wholesalers worldwide is no longer enough to remain competitive in today’s’

marketplace. The Gitanjali Group has therefore in the last few years enhanced its

operations to adapt to these changes. Being a DTC Sightholder and a diamond

manufacturer the Group has strategically positioned itself to manufacture and promote

diamonds as well as studded jewellery all the way to the retail level.

In 1994, Gili Jewellery was established as a distinct brand by Gitanjali Jewels, soon after

the abolition of the Gold Control Act by the Indian government. Gili offered a wide range

of 18-carat plain gold and diamond-studded jewellery, designed for the contemporary

Indian woman. The designs combined both the Indian and western styles and motifs.

With sales of Rs.0.14 billion for the year 2000-01, Gili had a 0.03 percent share of the

400 billion jewellery market in India and a 1.4 percent share of the branded jewellery

market.

Carbon

In early 1991, the Bangalore based Peakok Jewellery Pvt. Ltd., (Peakok) was

incorporated and Mahesh Rao (Rao) was appointed director. Peakok realized that the

Indian consumer's relationship with gold jewellery would grow beyond an investment

need towards a lifestyle and personality statement. In 1996, within the Peakok fold a new

brand of 18-carat gold-based jewellery called Carbon was launched. In 2000-01, with

sales of Rs. 0.14 billion, carbon had a 0.03 percent share of the jewellery market and a

1.4 percent share of the branded jewellery market. The company expected Carbon sales

to touch Rs. 1.5 billion by 2005-06 and exports to start by 2008. The brand was available

at 40 outlets in 16 cities in 2002 and would be made available in 23 cities by 2005.

Oyzterbay

Oyzterbay was founded by Vasant Nangia and his team in July 2000. It began operations

in March 2001. By November 2002, the company had 41 outlets across the country.

Oyzterbay seeks to build a national brand in the jewellery industry in India and aspires to

be the largest branded jewellery company in the country with a chain of 100 stores and

several hundred-distribution points by 2004. With sales of Rs. 0.17 billion in 2000-01,

Oyzterbay had a 0.04 percent share of the Rs.400 billion jewellery market and a 1.7

percent share of the branded jewellery market.

Trendsmith

Mumbai-based Tribhovandas Bhimji Zaveri (TBZ), which had been in the jewellery

business since 1864, saw tremendous scope in the branded segment and opened its new

concept store 'Trendsmith' in Mumbai in December 2001. Encouraged by the response

towards its first store, the Zaveris planned to take Trendsmith (India) Pvt. Ltd. all over

the nation by opening as many as 50 stores by 2006. Trendsmith offered eight lines of

exclusive designer jewellery from well-known export jewellery manufacturers and

designers from Mumbai and Delhi.

De Beers

The history of De Beers falls into three broad stages. In its early years, when the

company produced over 90% of the world's diamonds, it was able to control the

production and hence the supply of diamonds almost at will. Then, from the beginning of

the 20th century, when rival producers began to challenge its pre-eminence, De Beers

used its still-dominant position to co-ordinate and regulate the supply of diamonds in

pursuit of price stability and consumer confidence. Finally, in the closing years of the last

century, the globalising economy rendered De Beers' role of industry “custodian”

inappropriate and expensive. In response De Beers set about crafting a new strategy for

the 21st century: a suite of innovative programmes and alliances designed to reinvigorate

the industry and to grow demand for diamond jewellery.

Diamond jewellery has been making inroads into the jewellery market, thanks to the

efforts of the Diamond Trading Company (DTC). The DTC by launching its own brands

Arisia, Nakshatra, Asmi and Sangini, has been targeting separate consumer need states.

This is because the concept of a diamond for everyone has ensured that more and more

consumers can aspire to buy, own and possess a diamond. For instance, DTC has recently

signed a contract to hand over Nakshatra, India's largest and most successful diamond

jewellery brand in 2008 to the company, Brightest Circle Jewellery Pvt. Ltd (BCJPL).

BCJPL is a company owned and run by all three sight holders involved with DTC in the

Nakshatra brand - Mahendra Bros, Dimexon and Digico (Gitanjali).

In the past ten years that DTC has commenced operations in India, the diamond market

has slowly flourished. Today, the Diamond market in India is worth Rs 6600 crores.

These booming results are because DTC has launched several diamond jewellery brands

that have carved a niche for them, catering to different consumers.

TABLE II BRANDED GOLD

JEWELLERY MARKET (MAJOR

PLAYERS)

Brand Market share (2000-01) in

Tanishq 27

Oyzterbay 1.7

Gili 1.4

Carbon 1.4

Source: ICFAI Center for Management Research

OPERATIONAL DEFINATIONS

BRANDED JEWELLERY:

Branded jewllery is that jewellery which is made by an authorized firm or individual of

pure metal. Who have a unique name, term, sign, symbol or design to identify the

jewellery. Brand satisfies our Psychology need.

IMITATED JEWELLERY:

Jewellery which is not made of pure metal but have some semi precious stones and metal.

Fake, or costume jewellery was sometimes called cocktail jewellery.

E.g.:- bronze look like a gold.

UNBRANDED BUT NOT IMITATED:

Jewellery which is made up of pure metal but not branded.

Significance of the Study

My study is significant because it contributes to the existing research data base on the

topic of Comparative Analysis of Consumer Perception towards Branded and Imitated

Jewellery. I would also like to mention that such research studies also contribute to our

understanding of the research process in a scientific manner. Last but not the least that the

Indian context little research work has been carried out on this topic especially that which

is available in the public domain.

LITERATURE REVIEW

Every research which is conducted in today's era has been inspired by some of

researcher which are conducted before. I am also influenced to do, so I selected this topic

for research.

� According to Samrat Zaveri, CEO of Trend smith, "Research shows that the

Indian jewellery sector is in the transition phase with consumers' desire for

possession of jewellery for its aesthetic appeal and not as a form of investment."

� According to Singh (2001) in his study entitled “Consumer Behavior and

Jewellery products, an analysis stress that consumer attitude is an important factor

for the purchasing behavior towards jewellery.

� In October 2002, Trend smith conducted a survey to understand the shifting

needs, motivations and aspirations of consumers in the jewellery market, and to

identify new trends and opportunities. The research study arrived at the following

conclusions:

• The younger generation was looking at trendy, contemporary jewellery and

clearly avoiding heavy, traditional gold jewellery.

• The Indian consumer was willing to experiment with new designs.

� The jewellery industry is going through a period of transition with more players

scaling up operations, increasing their global footprints through outsourcing and /

or venturing into the new growth area – that of the domestic retail business. The

launch of numerous diamond jewellery brands in India in the last few years and

their successes indicate a marked shift in consumer preferences from gold

ornaments to diamond jewellery.

Source: Mr. Mehul Choksi (Chairman & CEO, Gitanjli Group) At International

Diamond Conference- Mines to Market.

� The TVC, which has been designed by Lowe India, showcases the various

emotions that are associated with jewellery. For instance, when a woman buys

jewellery, she feels joyful or when one sees the jewellery in the showroom, there

is an element of wonder. Tanishq, through the TVC, seeks to develop an

emotional connect with the consumer.

Source: Gayatridevi N (Ex-Research Associate, The ICFAI Knowledge center,

Hyderabad), The ICFAI Journal of Brand Management, March 2006.

� Introduce four key brand perception measures (Relevance, Confidence, and

Differentiation & Growth) and show how these correlate with use intention. It is

observed that these results can be linked to other position, value and process

metrics to provide actionable insights leading to enhanced purpose intention.

Source: Sean Corcoran and Shigeo Okazaki and Map, March 2005, Issue 459, pp 44-48.

� Proposes a set of strategic options for green brand positioning, based either on

functional brand attribute or emotional benefits and aims to test the suggested

positioning strategies one against another. Result achieved through a green

positioning strategy which combined functional attributes with emotional

benefits.

Source: Patrick Hartmann, Vanessa Apoalaza Ibanez and F.Javior Forcada Saing,

Marketing intelligence and planning, vol 23, 2005, pp 9-29.

� The paper looks at the role of brand credibility (Trustworthiness and Expertise) on

brand choice and consideration across multiple product characteristics that vary

with potential uncertainty about attributes, information acquisition costs and

perceived risk of consumption. Amongst other finding, it is suggested that

trustworthiness has a greater impact on consumer choice than expertise.

Source: Tulin Erdan and Joffre Swait, Journal of consumer research, vol 31, June 2004,

pp 191-198.

RESEARCH OBJECTIVES

The study has been undertaken for following objectives:-

1) To find the effect of advertisement on consumer purchase behavior.

2) To find out the market share in terms of source of information of jewellery.

3) To know the factors which affect choice of jewellery.

4) To know the consumer perception towards jewellery on different occasions.

RESEARCH METHODOLOGY

At the outset may be noted that there are several ways of studying and tackling a

problem. The formidable problem that follows the task of defining the research problem

is the preparation of the design of research project popularly known as research design.

More explicitly the designing decision happened to be in respect of following:

� What is study about? � Why is study being made? � Where will the study be carried out? � What type of data is required? � What will be the sample design? � What period of time will the study include? � How will the data be analyzed? � In what style will the report be prepared?

The purpose of this section is to describe the research procedure. This gives the

researcher sufficient support to give his arguments for opting certain alternatives and to

justify his position. Research methodology is a way to systematically solve the research

problem. It includes all those steps that are generally adopted to solve the research

problem.

IT GENERALLY INVOLVES:

� Area covered

� Research Design

� Sampling design

� Data collection method

� Data Analysis

AREA COVERED:

It was aimed to cover as large area as possible within the limits of given time and

financial constraints. The area covered was that of YAMUNA NAGAR and

JAGADHARI City. Respondents from different parts of Yamunanagar and Jagadhari

were surveyed.

RESEARCH DESIGN

Research Design is the conceptual blueprint for collection, measurement and

analysis of data. Research Design stands for advance planning of the methods to the

adopted for collecting the relevant data and the techniques to be used in their analysis

keeping in view the objectives of the research and the availability of staff, time and

money. Two broad classes of research design are identified as:

� Research design in case of exploratory research studies.

� Research design in case of descriptive in case of research studies.

Keeping in view the relevance of research design the Exploratory Design is followed in

this project, because it involves the Exploratory as well as descriptive study for the

research problem. So, as a part of the project an exploratory research was done for getting

the variables involved and getting a clear understanding of the problem and descriptive

study was done to know in detail the status quo in the area in which the research is being

carried out.

SAMPLING DESIGN

A sample may be defined as the selection of some part the whole population on

the basis of which a judgment or inference about the whole population is made.

Sampling is the process of selecting the sample, which is representative of the

target population. Due to some constraints each member of a group cannot be studied. So,

it is requires selecting a sample from the group. A sample should neither be too large, as

to be unmanageable to be studied, nor too small to lose its relevant characteristics. After

deciding on the research approach and instrument a sampling plan has been designed.

This plan calls following decisions:

SAMPLING UNIT:

Sampling unit denote the people or respondents who are to be surveyed. For my

study target population consists of all categories of consumers who purchase jewellery.

SAMPLE SIZE:

Sample size means the number of people to be surveyed. In the given research

project sample size consists of: Consumers: 110

SAMPLING PROCEDURE:

Sampling procedure is the process of choosing the respondents. To select a

sample of respondents non probability sampling has been used.

The questionnaire contained both the close – ended and open-ended type of

questions. To collect the data survey has been conducted in Yamuna nagar and Jagadhari

DATA COLLECTION

The task of data collection is begins after a research problem has been defined and

research designed/ plan chalked out. Data collection is to gather the data from the

population. The data can be collected of two types:

(1) Primary data

(2) Secondary data

Primary data:-

The Primary data are those, which are collected afresh and for the first time, and

thus happened to be original in character. Methods of collection of primary data are as

follows:

� Questionnaire

Secondary data:-

The Secondary data are those which have already been collected by some one else

and which have already been passed through the statistical tool. Methods of collection of

Secondary data are as follows:

(1)Journals

(2) Books

(2)Websites

DATA ANALYSIS

Next is data analysis that means to extract pertinent finding from the collected data.

Because data in itself carries no meaning until it is represented as some proper

information. Data has been analyzed and has been presented in table form.

Questions

1. Do you find any thing wrong with purchasing imitation brand name

products such as purses, jewellery, wrist watch or imitation electronic

products?

No of Respondents Yes No

110 66 44

This graph shows most of respondents don’t find any thing wrong with purchasing

imitation brand name products such as purses, jewellery, wrist watch or imitation

electronic products.

66.60%

44.40%Yes

2. Which of the following imitation products do you think are perfectly fine

alternative of the original?

No of Respondent

Electronic

products

Purses Jewellery wrist watch

110 8 42 56 24

Electronic

products

Purses Jewellery wrist

Percentage

This graph shows that the most of the respondents thinks that the jewellery and purses are perfectly fine alternative of the original.

3. Do you prefer branded or imitated jewellery?

No of Respondent

Branded Imitated Both Any other

110 20 7 58 25

Branded Imitated Both Any Other

Percentage

Any Other-Unbranded but not imitated

This graph shows that the most of the respondents prefer branded or imitated jewellery.

4. How many brand name of jewellery are you aware?

Tanishq Nakshetra PP

Jewellers

D’Damas De

Beer’s

DTC Gili

D’Gam

109 107 85 79 61 53 42 53

99.09 97.2777.2771.82

55.4548.1838.1830.00

0.0020.0040.0060.0080.00

100.00120.00

Tanishq

Nakshetra

PP Jewellers

D’Damas

De Beer’s

Gili Gold

D’Gam

Percentage

This graph shows that the most of the respondents are aware about the branded

jewellery.

5. Would you have more or less respect for a person if you found that the person

had an imitation or fake brand name products?

110 31 79

31, 28%

79, 72%

This graph shows that the most of the respondents have no problem if they found that

the person had an imitation or fake brand name products.

6. Which source of advertising do you prefer for seeking information about

jewellery?

T.V Magazine News paper other

77 52 16 8

14.557.27

01020304050607080

T.V Magazine News

Percentage

Detail of Others:- Personal Contacts - 3 Word of Mouth - 2 Jeweller - 2 Radio - 1 This graph shows that the T.V and Magazines are the main source of awareness.

7. What do you notice most in an advertising?

Design Brand Celebrity other

65 50 23 0

59.091

45.455

20.909

0.0000.000

10.000

20.000

30.000

40.000

50.000

60.000

70.000

Design Brand Celebrity other

Percentage

This graph shows that design affects more from advertising.

8. Does the jewellery used in daily soaps (T.V serials) influence your purchase

decision?

110 67 43

This graph shows that jewellery used in daily soaps (T.V serials) influence your purchase

decision.

67.61%

43.39% Yes

9. Which factor affects your choice?

Design Brand Guarantee Price

78 24 32 31

21.8129.09 28.18

Design Brand Guarantee Price

Percentage

This graph shows that design affects choice more as compare to other factors like brand, guarantee and price.

10. Do you prefer imitated jewellery only on occasions?

110 54 56

� If yes, at which occasion do you prefer imitated jewellery?

Festival Family Party Non Family Party Kity Party

11 44 13 3

Festival Family

Family

Kity Party

Percentage

This graph shows that the most of the respondents prefer imitated jewellery only on

family party.

� If no, what kind of jewellery do you prefer on such occasion?

Branded Unbranded But Not

Imitated

26 25 5

23.63 22.72

Branded Unbranded But

Not Imitated

Percentage

This graph shows that the most of the respondents prefer banded and unbranded but not

imitated jewellery on occasion.

ANALYSIS OF STUDY

It has been observed through the study that the awareness of the jewellery in both the

categories branded as well as imitated jewellery is equal. The respondents like to wear

imitated jewellery in family festivals and they don’t mind people wearing or buying fake

brands or imitated jewellery. Most of the female like design when it comes for

purchasing jewellery. There are few females that prefer unbranded but not imitated

jewellery (purchased by their own gold smith).

1) 66.60% of respondents don’t mind buying fake products like jewellery, purses,

wrist watch & electronic products & 44.40% of respondents mind i.e. majority of

respondents buy the fake brand or imitated brands.

2) 50.90% of respondents find that imitated jewellery and 38.18% of respondent find

that the purses are the best alternative of original. Respondents in majority feels

that the best option of original brand to buy is imitated jewellery or purses rather

than to buy imitated electronic goods or wrist watch.

3) The answer of this question unambiguous. Majority of respondents like branded

and imitated jewellery and 22. 72% like unbranded jewellery but not imitated.

4) It has been observed that the awareness in the branded jewellery is more for

Tanishq and of Nakshatra because of the continuous advertisement in print and

electronic media by these companies.

5) Majority of respondent don’t mind if they find people wearing imitated jewellery.

6) T.V advertisements have more impact on the respondents

7) The design of jewellery has long lasting impact on the respondents than the brand.

8) Since the design has greater impact on the respondents which further influence the

buying behavior.

9) Design highly affects the purchase behavior of the respondents as compare to

price, brand and guarantee.

10) Majority of the respondents prefers imitated jewellery on family parties. Whereas

50% of respondents prefer branded and unbranded but not imitated jewellery

(purchased by their own gold smith) on occasions.

FINDINGS

Objective1:-

To find the effect of advertisement on consumer purchase behavior

This objective fulfilled from question 7.Advertisments affects consumer purchase

behavior; Respondents mainly notice Design, Brand, and Celebrity in an advertisement.

Design and brand (50% & 45%) affects more from advertising as compare to celebrity.

Objective2:-

To find out the market share in terms of source of information of jewellery.

This objective is satisfied from question No 7, 70% of Respondents get information about

Jewellery from T.V., where as 47.27% Respondents from magazine.

Objective3:-

To know the factors which affect choice.

This objective is satisfied from question No 9, as per the recorded data design is the

Greater factor which affect consumer choice.

Objective4:-

To know the consumer perception towards jewellery on different occasions.

This objective satisfied from the question No10. According to my study 44%

Respondents prefer imitated jewellery on family party, 13% prefer imitated jewellery on

non family party. Where as 23% respondents prefer branded and 22%prefer unbranded

but not imitated jewellery on such occasions.

SUGGESTIONS

1. It is being observed that respondents are aware of Tanishq and Nakshetra because of

advertisements so the other branded jeweller marketers should also adopt the best

promotional strategies.

2. Females between ages of 19 – 30yrs are the best target customer for the imitation

jewellery marketers.

3. Females of above 35 yrs are the best target customer for the gold smith jewellery so the

gold smith should target these groups.

4. To assure consumers that your product is best use experts. To provide instant

awareness - use film stars.

5. Advertisement agency should keep in mind certain product categories which are more

influenced by celebrity endorsements such as – Jewellery, Designer & product etc.

CONCLUSION

This study shows that most of the female are aware about branded and imitated jewellery.

Majority of respondents don’t find anything wrong with purchase of imitated jewellery.

Even half of respondents prefer imitated jewellery on occasions (like festivals, family

parties, non-family parties, kitty parties). Where as other half of the respondents prefer

branded and unbranded but not imitated on the same occasions. Respondent are aware

about branded jewellery but still they don’t prefer branded jewellery. Design influences

the purchase behavior of the females. Where as T.V & magazines are the main sources of

awareness.

LIMITATIONS

The followings are the limitations of the study:-

1. The information provided by respondents may be biased. So it may affect results of

study.

2. . The researcher had an intention to reach a large sample but due to lack of time the

intention could not be accomplished up to desired level.

3. The questionnaire was a bit time consuming. So getting them all filled was a tedious

process.

4. Some response of questionnaire can't be considered very accurate because some

respondents were not so serious while answering the questions.

5. The study is restricted to the limited areas of search.

6. Time period for the research is not appropriate.

7. Respondents shows biased attitude towards unbranded but not imitated jewellery.

Specially age group of 30 and above.

BIBLIOGRAPHY

BOOKS:

� Kotler Philip: Marketing Management, 11th Edition, Prentice Hall of India Ltd.

JOURNALS & PAPERS:

� Rajasekhar, Kavita. “tatan Goes for Gold with Nebula”. The Financial express. November 1, 1999.

� “The Midas Touch”, Business Standard, June 25, 2001. � Goyal, Malini. “India Today-Corporate Report, November 25, 2002, pp. 63-64. � Business India, February 17, 2002. � Gayatridevi (Ex-research Associate, The ICFAI Knowledge center, Hyderabad),

The ICFAI Journal of Brand Management March 2006. � Sean Corcoran and Shicago Okazaki and Map, March 2005, Issue 459, pp44-48.

WEBSITES:

� www.titanworld.com � www.rediff.com. Ganpati, Priya. “How Tanishq Turned around,” Rediff-

Business, July 4, 2003.

� www.agencyfaqs.com � www.icmr.icfai.org

� www.icmrindia.org

Questionnaire

Thank you for participating in this survey. The information provided by you is only for academic purposes.

Name: _______________________Address:_____________________________________________

Tel No: ________________________Age: 20-29____30-39____41 or above_____

Occupation: Businessman _________Self employed professional________

Service ______Homemaker ______Student ______Retired ______.

� Do you find any thing wrong with purchasing imitation brand name

products such as purses, jewellery, wrist watch or imitation electronic

products?

Yes No

� Which of the following imitation products do you think are perfectly fine

alternative of the original?

Electronic products Purses

Jewellery wrist watch

� Do you prefer branded or imitated jewellery?

Branded Imitated

Both Any other

� How many brand name of jewellery are you aware?

D’Gam Nakshetra De Beer’s

Tanishq Gili Gold DTC

D’Damas PP Jewellers

� Would you have more or less respect for a person if you found that the

person had an imitation or fake brand name products?

Yes No

� Which source of advertising do you prefer for seeking information about

jewellery?

T.V Magazine News paper other _____________

� What affect do you notice in an advertisement?

Design Brand Celebrity other____________

� Does the jewellery used in daily soaps (T.V serials) influence your purchase

decision?

Yes No

� Which factor affects your choice?

Price Brand Guarantee Design

� Do you prefer imitated jewellery only on occasions?

Yes No

� If yes, at which occasion do you prefer imitated jewellery?

Festival Family Party

Non Family Party Kitty Party

� If no, what kind of jewellery do you prefer on such occasion?

Branded Unbranded but not imitated

Any other_________________

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