The Magnificent Diamond House

Bringing the absolute radiance to your life

Contents

1.0 Executive Summary

2.0 Mission
1.1

Marketing Objectives

1.2

Financial Objective

3.0 Situation Analysis

3.1.1 Market Demographics
3.1.2 External Environment
3.1.3 Market Needs
3.1.4 Market Trends
3.1.5 Market Growth
3.2 SWOT Analysis
3.2.1 Strengths
3.2.2 Weaknesses
3.2.3 Opportunity
3.2.4 Threats
3.4 Competition
3.5 Keys to Success
3.6 Critical Issues
4.0 Marketing Strategy
4.1 Positioning
4.2 Product Strategy
4.3 Pricing Strategy
4.4 Distribution Strategy
4.5 Promotion and Communication Strategies
4.6 Target Markets
4.7 Marketing Mix
4.8 Marketing Implementation
5.0 Financials
5.1 Sales Forecast
5.2 Sales Expense
5.3 Marketing Expense Budget
5.4 Budget distribution
5.5 Break-Even Analysis
6.0 Controls
6.1 Contingency Planning

7.0 Vision

The Magnificent Diamond House

1.0 Executive Summary
The Magnificent Diamond House (MDH) is a diamond shop, which will meet the specified taste of the
exclusive social group of Dhaka city, providing the most radiant diamonds. MDH will import diamonds
directly from South Africa to assure the best possible quality, sharpest cut, carat, weight, clarity and
magnificent design etc. In a word, MDH wants to provide its exclusive customers with most brilliant and
scintillated pieces of diamonds. According to our clients taste, MDH will provide diamonds plated on
platinum, white gold and gold. The current market of Dhaka is mostly dominated by local and Indian
diamond shops, who providing diamonds for middle class, upper middle class and the upper-upper class
market segments. But, MDH will target the upper and upper-upper market segment exclusively to
maintain its quality, cost and to maintain its extravagant class.
2.0 Mission
The Magnificent Diamond Houses mission is to satisfy the extravagant taste of the exclusive social group
of Dhaka. MDH will create an opportunity for them to buy the world-class diamond jewelries right here
at Dhaka. We believe, this will make MDH different from other diamond shops and will create a
prestigious image for MDH in the respective market segment.
2.1 Marketing Objectives
1. Maintain positive, steady growth each month.
2. Experience an increase in new customers who will turn into long-term customers.
3. Create a loyal customer group through quality product and service.
2.2 Financial Objectives
1. Realize a 3% increase in gross profit margins through efficiency gains every year.
2. Reduce the transportation costs associated with product delivery by 5% by the end of the first
year.
3. Reduce 3% processing cost through using advanced methods by the end of the second year.

Situation Analysis
3.0 Situation Analysis
The Magnificent Diamond House (MDH) is a start-up business. RDB imports raw Diamonds from South
Africa, and marketing is now critical to its continued success and future profitability. RDB imports high
quality raw diamonds and process it here in Dhaka, which will allow MDH to keep the price level
comparatively low. The basic market need is high-quality brilliant diamonds with smooth finishing. RDB
will not only provide the individual customers, but also will provide packages for different occasions and
functions.

3.1 Market Summary

The Magnificent Diamond House (MDH) possesses good information about the market and
knows a great deal about the common attributes of our most prized and loyal customers. It will
leverage this information to better understand who is served, their specific needs, and how MDH
can better communicate with them.
3.1.1 Market Demographics
The profile for MDHs customer consists of the following geographic, demographic, and behavior factors.
MDH has target segment customers, upper middle class, and upper-upper class.

Individuals:

Geographies
- The immediate target is the Dhaka city.
- The total targeted population is within 100 miles.
Demographics
- Singles and families.
- Ages 25 above.
-Have a household income of more than Tk.1,000,00 per month.
-Tend to be more sensitive to quality than price.
Behavior Factors
-Are willing to pay a premium for higher quality, better quality and finer cut diamond jewelries.
-There is value attributed to the more attractive presentation of different special cut and carat of
diamonds.
3.1.2 The External Environment

Legal and Regulatory Issues

Local laws and court decisions are issues to be taken under consideration before starting up the business.
Changes or variations in either may cause problems in issues such as, leasing of land, trade licensing etc.
There are authorities of government may have some regulations, which must be considered to maintain
the quality of our product.

Technological Advancements

Improvement in technology will reduce costs, time and ensure better quality. Technological advancements
would mean better optical instruments, grinding wheels, stone processing wheel, diamond profile wheel
etc.

3.1.3 Market Needs

MDH provides individuals with high-quality sparkling diamonds. At the same time, it seeks to fulfill the
following benefits that are important to their customers.
Selection:
A wide choice of different quality, cut, carat and design will be available with the flexibility of different
price levels.
Accessibility:
The Magnificent Diamond House (MDH) provides its finest cut and magnificent diamonds directly from
its processing center to its five exclusive outlets, situated at Gulshan (1 outlet), Dhanmondi (2 outlets) and
Baitul Mukarram (1 outlet).
Customer service:
The customers will be impressed with the quality and charm of the MDH diamonds and the attention, care
and service they will receive. Without that, MDH will provide a Diamond Certificate which guarantees
the authenticity and integrity of every MDH diamond, the certified cut, color, clarity, carat weight, even
the exact proportions of the gem, will be the assurance for customers today and many years from now .
Competitive pricing:
All products will be priced competitive to true substitutes.
3.1.4 Market Trend
The market for Diamond is not wide spread in Dhaka city. An explanation for this trend is: As times are
changing the upper middle class and upper- upper class society members are becoming more beauty, style
and fashion conscious. As a result, demand for diamond is increasing. But, the fact of quality and prestige
will make them prefer MDHs diamonds instead of currently available ordinary designed diamonds.
3.1.5 Market Growth
The upper-middle class and high society members of Dhaka are now getting more conscious about
fashion and style. Moreover, they want to maintain their status with classy fashion accessories and when
it comes about accessories, diamond is always in their priority list. This segment is more conscious about
their fashion statement rather than the price.
The existing diamond suppliers are unable to meet the demand of the higher class of Dhaka, who are
willing to pay more for excusive and slick diamond jewelries foe greater status.

3.2 SWOT Analysis

Strengths

Weaknesses

Lack of brand equity and brand

image.

Availability of better product.

Limited marketing budget.

High quality and variety of designs.

Limited variety of diamonds because

of higher expense of importing.

Flexibility in meeting the needs.

High-quality product offerings.

Opportunities

A significant percentage of the target

market is still unaware of MDHs
existence.

Ability to develop long-term customer

group.

Ability to provide customer satisfaction.

Threats

Local Diamond shops are already

established competitors.

High tax, import cost, poor economic

situation.

Possibility of being robbed because of

social instability.

The following SWOT analysis captures key strengths and weaknesses within the company and describes
the threats facing MDH.
3.2.1

Strengths

Flexibility in meeting the needs of customers.

High-quality product offerings that exceed competitors offerings of quality, and service.

Greater accessibilities of variety of quality jewelries. People will be able to purchase their desired
jewelries from any of our outlets.

Better design to buy quality products.

3.2.2

Weaknesses
MDH lacks brand equity and brand image as people are unaware of its existence.

3.2.3

3.2.4

Being a start-up business it has a limited marketing budget to develop brand awareness.
Limited variety of diamonds because of higher expense of import cost.
Higher price in comparison to local shops
Opportunities
Growing market with a significant percentage of the target market still not aware that MDH
exists.
The ability to develop long-term customer group.
Threats

Local diamond shops, which are already established competitors, have decided to make customer
service and flexibility their selling point.
Possibility of being robbed because of social instability.

High tax, import cost, poor economic situation.

3.3 Developing the Competitive Advantage

MDHs high quality product offering will allow it to grab a significant percentage of the target market.
Greater accessibility of variety of design, caret weight, cut of jewelries will allow it to develop long-term
customers.
When MDH becomes a well-established diamond shop, it will open up more outlets and will provide its
customers more access to greater collection of jewelries. However, higher price will remain as a
weakness. This is because; quality diamonds have a higher processing and importing cost than local
shops. In order to compete with the already established local shops, MDH will promote the significance,
value and style statements of MDH diamonds.
3.4 Competition
There are several existing diamond shops that are already recognized by customers. There are Dia-world,
Tanishq, Amin-jewelers, Apon-jewelers who are already established in diamond selling business. They
have better idea of the behavior, purchasing power of the customers and market situation. They already
have brand equity among the customers.
3.5 Keys to Success
Exceed the customer's expectations. Additionally, MDH will:

Generate repeat business.

Increase the transactions amount per outlets.
Increase the number of individual customers.

3.6 Critical Issues

The Magnificent Diamond House is still in the speculative stage as a diamond processor. Its critical issues
are to continue to take a modest fiscal approach; expand at a reasonable rate, not for the sake of expansion
in itself, but because it is economically wise to; and continue to build brand awareness to lower future
marketing costs.
4.2 Product Strategy:
MDH will sell a variety of diamond-designed jewelries .MDH will mainly design the diamonds on gold
and white gold. MDH will have a variety of rings, especially engagement rings, earrings, lockets (with
chains), bracelets, bangles and anklets. These jewelries will be designed and made for the customers and
sold through our exclusive retail stores. MDH will directly import the diamonds from the distributors in
South Africa and will implement those on gold and white gold with designs at Savar. It will take 1.5
months approximately to finish one set (5 units) of design, and after that it is assumed that MDH sells will
start. The brand and logo will be developed.
4.3 Pricing Strategy:
MDHs pricing strategy will be cost-plus pricing. As MDH is commencing its business, the designed
diamond sets must be priced by adding a make-up to the cost. The price that MDH will introduce for
designed diamond items are as follows:
Diamond Items
Ring
Earring
Necklace
Locket
Bracelet
Bangle
Anklet

Retail Price (1 carat per design)

Gold
White Gold
Tk 45250
Tk 50150
Tk 250,000
Tk 41350
Tk 45650
Tk 41650
Tk 43350

Tk 50750
Tk 65550
Tk 300,000
Tk 55350
Tk 51750
Tk 53950
Tk 52350

*Price may vary according to the design, clarity, color, cut, carat and the amount of gold and white gold used per design