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Mallika jewellers company profile
Mallika jewellers is an esteem gold smith company which is quite well known all over
the world, mainly in the Middle East it is known as the largest jewellery
manufacturer and it commands a top market position in its key domestic market of
Saudi- Arabia which constitutes the single most important market in the region. It has
quite a dominant market share in Saudi Arabia where the volume produced by the
second largest manufacturer is just equal to one-quarter of production done by the
Mallika jewellers.
The Market dominance in Saudi Arabia, achieved by the Mallika jewellers is through
a combination of scale, technological supremacy, cutting-edge design, manufacturing
excellence, differentiated brand values, and sales and marketing superiority. It is one
of the few manufacturers that are able to produce gold jewellery and accessories in
vast array of different karats, colours and studded with diamonds or other precious
gems. Mallika jewellers has reached a top position in the local market today and is
considered as a threat for the competitors as it offers a combination of creative
designs, high quality, reliability and certification and authenticity of the gold content.
Company's objectives:
To increase the company's market share
To gain the competitive edge
Quicker design-to-market times than rivals
Higher product quality than rivals
Broader or more attractive product line than rivals
A stronger reputation with customers than rivals
Superior customer service
High level of customer satisfaction than rivals
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Company's vision:
To establish in developing gold and jewellery fashion to achieve sustained added
value for customers and shareholders.
To offer luxury jewellery at an affordable price
Company's mission:
To create unique trends in the gold and jewellery fashion
To maintain good relationship with our customers
To strengthen our brand equity
To develop our culture through innovation
To enhance employee competency and loyalty
To achieve continuous growth and expand business
To become socially responsible and serve the community
Recognition as a leader in product innovation (jewellery)
To cover wider geographic area than rivals
Lower costs relative to key competitor
The Sales and marketing department of the company mainly focuses
on developing wide variety products that are trendy, unique, exquisite
and luxurious keeping up with the changing fashion and consumer
tastes. It is also involved in the market research to determine its market
and product mix in order to benefit from the opportunities to achieve
growth level surpasses the company's objectives.
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Marketing Research
It is the systematic collection and analysis of data about the prominent attributes of
the market, such as consumer behaviour, competition, identification of marketing
opportunities and threats, necessary reforms etc which are beneficial for the company.
It is a continuous process, wherein the company collects the data and interprets it to
bring about the necessary changes in company policies and strategies which therefore
generates, refines, and evaluates marketing actions, monitors marketing performance
and which helps to improve the understanding of marketing as a process.
Market research allows the company to study the relationship between the company
and the consumer.
Marketing research process which is carried out by Mallika jewellers consists of
certain stages:
Defining the market problem – the problem identified should be clear and
precise
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Developing an approach – the approach developed or designed should be nearly
flawless and should be able to solve the identified problem.
Developing an actual research design – it should be designed very carefully
with expertise, time and thought as it is the most encompassing step of the
research process.
Data collection – this step involves all the field related work i.e. the information
is gathered. (either through questionnaires, observation ,interviews etc)
Data preparation and analysis – this is the step where all the data has been
collected and systematically organised so that it can easily be interpreted and
analysed by decision makers.
Report preparation and presentation – It is the final step of the marketing
research process, the data findings and information should be reported and
presented in such a way that the decision makers can easily make use of it to make
fruitful decisions.
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Marketing strategy is closely aligned with the overall business strategy, mainly
considered as being the backbone of a successful business. It supports organizations
goals and objectives, uncovers the opportunities to differentiate and emphasize the
unique value of the offering. It also lays at the center of all tactical marketing, sales,
product management and communication activities, ensuring that regular messaging
and branding occurs across the various contact points.
Mallika jeweller's team has partitioned marketing research into four of categories:
Markets
Customers
Competitors
Micro Environment
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Market
A market for an organisation is where they buy and sell the products.
For e.g. Mallika jewellers sells its products through internet, face to face, through
magazines by post etc.
The market should be properly segmented - it is the process of dividing the market
into groups of potential customers with similar needs or characteristics who are likely
to exhibit similar purchase behavior.
The gold smith company can segment the market by following certain steps like:
1. Segment Identification — the segment should be clearly identified i.e. the
similar market segments should be chosen on the basis of a segment's
variables and criteria. Segments should be more like of a justifiable size
customer-focused, distinguishable, accessible, accountable & profitable.
E.g. Mallika jewelers can segment the market by mainly using demographic
(Gender, Age, Income), psychographic (Social Class, Life style) and
behavioral (Benefits, Usage rate, Occasion) segmentation.
2. Market Target — selecting the groups to target, for
marketing activity i.e. making strategic choices based on customer needs,
competitive opportunities, corporate objectives, and the firm’s financial,
technical and marketing resources.
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E.g. Women (Brides, House wives, working women, teenage girls)
3. Positioning — carving out a market position for your company. It can be
chosen if research is carried out successfully by searching out unique
marketing advantages, by seeking new market segments that competitors are
not cultivating, or by developing new approaches to old problems.
E.g. Shops, internet etc.
Customers
Customers play a major role in the success of every business. The main aim of any
business organization is to create a customer. It is the customers who buy the product
or service that makes the business boom. If few customers only buy the products a
business is more likely to make huge losses and eventually be forced out of the
market. It is very important for a business to know what kind of products the
customers will be ready to buy and pay for. Advertising and other forms of promotion
techniques should be used in order to attract the customers towards the product.
Customers today are highly educated, very demanding and have higher expectations
because of which it has become a challenge for most of the businesses to keep their
customers satisfied, brand loyal and contended. The customers these days also have a
major concern for the quality of the goods; they expect the goods to be of the best
quality, available at reasonable prices.
E.g. Women
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Competitors
Every company faces competition in the market. A company must be aware of its
competitors and their strategies in order to stay ahead in the competition. Though, it
can be a challenge for the businesses at times to survive the competition that exists in
the market. In pursuit of survival and growth, organizations compete with one
another. In a buyer’s market, the competition to win customers is even fiercer.
However, the presence of competitors and rivalry forces allows each organization to
offer quality products at minimum prices. The enlightened management encourages
customers to make decisions on the basis of factual information rather than the
aggressive advertising campaigns or discounting quality of the competitor’s products.
Competition indeed brings out the best in an organization and requires the
management to constantly strive for excellence.
E.g. Other jewellers (in the same market) like Lazurde, damas etc.
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Environment-Micro
Micro Environmental Factors
These are internal factors of the company that have a direct impact on the
organization's strategy. These factors include:
Customers
It can be person, company, or other entity which buys goods and services produced by
other company. Companies survive if the needs and the wants of their customers are
fulfilled. If they fail at building this foundation, then perhaps result will be a failed
business strategy.
Employees
They are the people who are hired to work for the company in return for financial or
other compensation. Hiring the right type of staff and keeping them motivated is an
important part of the strategic planning process.
Suppliers
It is a company or an individual who supplies parts, raw materials or services to
another company or an individual. They are also called vendors. A good relationship
with the supplier means delivery of reasonable and good quality products.
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Shareholders
They are either the individual, group, or organization that holds one or more shares in
a company, and on whose name the share certificates are issued. Each firm has one
share holder legally who are also known as a stockholder. More shareholders there
are, the better it is for your company.
Media
Positive or negative media attention towards an organizations product or services can
sometimes prove to be successful or it can shatter the company. Consumers are very
concerned with media talks, either they like or dislike the organization. Therefore
organizations have to be very careful of giving a positive impact on the media, or else
they would have to re-plan their tactics.
Competitors
It is a person, business or an entity that exists in the same industry or a similar
industry which offers a similar product or service. In order to keep the consumers
buying from your company, the company must offer something which is unique from
all the other companies so that they are bound to buy it from your company only and
become brand loyal.
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Marketing mix is a combination of marketing tools that are
used to satisfy customers and company's objectives. Consumers often call marketing
mix "the offering." The offer is controlled by the following variables often known as
the four Ps in marketing:
Product
Price
Place (distribution)
Promotion
Product
The product is the tangible, physical products or service offered to the
consumer. It contains the features that attract the consumers to buy the
product.
Product decisions include aspects such as appearance, packaging, service,
warranty, brand name, quality, safety, styling, functionality etc.
Mallika jeweller's product (i.e. jewellery) is divided into various types i.e. into
elegant designs aimed at working women, heavy and fancy designs aimed at
brides, funky design aimed at teenagers etc.
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Price
Price is the amount of money that customers have to pay while purchasing the
product. Pricing decisions should take into consideration the profit margins
and the probable pricing response of competitors.
Pricing not only includes the list price, but it also includes Pricing strategy (skim,
penetration, etc.), discounts, Seasonal pricing, Bundling, Price flexibility, Price
discrimination etc.
Mallika jeweller's prices vary according to the karat size, making charges and designs.
Place (distribution)
Place (distribution) decisions are those related with channels of distribution
that serve as the means for getting the product to the target the right customers
and market. The distribution system performs transactional, logistical, and
facilitating functions.
Distribution decisions might include market coverage, distribution channel
and centers, logistics, warehousing, order processing, transportation, levels of
service etc.
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The Distribution channel that Mallika jewellers use is from the producer to
the customers (direct channel) i.e. through the company's own shops and
also through their website over the internet.
Promotion
Promotion decisions are those various aspects of marketing communication; it
is the communication of information about the product with the goal of
generating a positive customer response. It helps to increase the publicity of
the company, which therefore helps to increase sales.
Promotion decisions involve promotional strategy (push, pull, etc.),
advertising, public relations, media types, sales promotion, etc.
Some examples of the promotion techniques used by Mallika jewelers are:
Advertising – through using media services like on TV, between TV
shows and movies mainly involving women viewers' .Also, advertising on
the radio, on internet, through magazines, or printed leaflets.
Sales promotion –By helping a cause to raise funds, giving away a free
gift after an extravagant purchase, providing promotion packages etc.
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Marketing tactics are the conscious actions which are taken by a person or a
company that are designed and planned to attract consumers to buy their goods and
services. They are the physiological aspects that are involved and are geared so that
you can decide if you actually want to buy their product.
Tactical plan is a short term plan that is made to achieve company's objectives
successfully by means of available resources. It typically demonstrates how strategic
plans will be executed; they are usually developed by the management team.
However, in order to understand the strategic goals, it is very necessary to interpret
these goals systematically so that an effective tactical plan is formulated; the charts
are segregated, so that a course of action may result in the attainment of the strategic
objectives.
The target market of Mallika jewelers is mainly aimed at women (brides, house
wives, working women, teenage girls).They have segmented into demographic
(Gender, Age, Income), psychographic (Social Class, Life style) and behavioral
(Benefits, Usage rate, Occasion) segmentation as they produce luxurious jewellery.
Target segment What Mallika jeweller offers (gold and white gold jewellery)
Brides Luxurious, stylish and classy formal wear jewellery
House wives Elegant and stylish formal/casual wear jewellery
Working women Elegant formal/informal wear jewellery
Teenage girls Funky and stylish formal/casual wear jewellery
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It is very important to keep a close watch on all of our competitors in order to track
their new products and their time of launch into the market. Mallika jewellers have to
keep up with the pace of their competitors so they have come up with some tactical
plans like:
Special Bridal jewellery package- a free voucher of bridal make-up is given
to the customer along with the purchase of bridal jewellery package which
consists of (a formal, classy ,uniquely and luxuriously designed gold/white
gold set).Though the price may be a little high but it will draw customers
(brides) because of the free make-up voucher available with it.
Lower making charges – In order to decrease the price of the jewellery,
Mallika jewellers charges lower making charges, as the price of gold varies
according to current gold rate. Affordable prices for luxurious jewellery might
lead to numerous customers.
Celebrity endorsement – The power of celebrities associated with certain
products, influences consumer-purchasing decisions to a great deal.
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E.g. Mallika jewellers have endorsed Elissa and Nancy (Famous Arabic
singers) to promote their product (i.e. the jewellery) in the Middle East.
Unique variety of designs- Mallika jewellers provides a wide variety of
unique, stylish and trendy designs in the jewellery which are available in
different sizes and prices, from formal wear to the casual wear.
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References:
AS and A Level Economics by Colin Bamford, Keith Brunskill, Gordon Cain,
Sue Grant , Stephen Munday , Stephen Walton
IGCSE Bussiness Studies by Karen Borrington and Peter Stimpson
Business Studies by Dave Hall, Rob Jones, Carlo Raffo
http://www.quickmba.com/marketing/mix/
