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North American
Fine Jewelry Retailing
Research Series:
Marketing
Best Practices
Sponsored by
OV E RV I E W 2
TABLE OF CONTENTS
Jewelers share their marketing
QUESTIONS AND ANSWERS:
A closer look at the survey’s 20 main questions challenges, goals and best practices
p.4 1. What is your total marketing spend as
percentage of revenue?
p.5 2. What is the change in your marketing spend as
a percentage of revenue compared to last year?
p.6 3. What kind of print advertising do you run?
p.7 4. How many in-store marketing events do you NATIONAL JEWELER’S exclusive market- • Building brand recognition is the
host per year? ing practices survey posed a series of most important marketing goal for jew-
p.8 5. Which of the following types of events do questions to jewelers about how they elers (44 percent), followed by driving
you hold?
run their marketing programs in order traffic to their stores (29 percent).
p.9 6. What percentage of your marketing budget is
paid for out of suppliers’ co-op funding? to help elucidate the business chal- Reflecting these two main goals, virtu-
p.10 7. What types of market research do you lenges, goals and best practices of the ally equal numbers of jewelers expect
engage in? industry at large. immediate results (34 percent) and
p.11 8. What is the primary goal of your market On each page of the survey results, long-term results (35 percent) from
research?
you’ll find one of 20 questions. Each their marketing efforts.
p.12 9. Do you collect customer data/information?
question has been cross-tabulated by • Jewelers with higher revenues and
p.13 10. If you collect customer data, in which of the
following ways do you use it? key demographics and briefly summa- wider core markets spend more on adver-
p.14 11. Which of the following methods do you use rized to provide further insight into the tising and hold more in-store events. Print
to contact customers? results. But first, here are some of the advertising, especially in newspapers,
p.15 12. Do you buy mailing lists to solicit new survey’s main findings, culled from the remains an important marketing resource
customers?
responses of the
p.16 13. Within what period of time do you expect to
204 participating
see a return on a specific marketing investment?
p.17 14. What is the most important objective of your
jewelers:
marketing? • Most jewelers
p.18 15. What is your biggest marketing execution (89 percent) spend
challenge? less than 10 percent
p.19 16. Who manages your marketing budget? of their yearly rev-
p.20 17. Who is responsible for developing your enue on marketing.
marketing creative?
In general, as core
p.21 18. Do you work with an outside consultant/
agency for any of the following? market size and per-
p.22 SPONSOR QUESTION: 19. How would you rate store revenue go up,
in-store financing programs as a marketing/ so does marketing
sales tool?
spend.
p.23 SPONSOR QUESTION: 20. Are special, limited-time
financing offers effective for increasing sales? • Year-over-year,
jewelers are cau-
APPENDIX: tiously re-evaluating
The top four responses to four open-ended questions their marketing budgets. More than one- (61 percent of jewelers run these ads),
p.24 A. What is the share of your marketing budget by third plan to spend no more this year than and single-vendor trunk shows are most
each of the following media? they did last year, and 21 percent plan to common (37 percent of jewelers hold this
B. What is your marketing spend by quarter as a spend even less. type of in-store event).
percent of the total?
• Devising a master plan is the • Better product development is the
C. How do you measure/validate your marketing
program’s return on investment? biggest marketing execution challenge main reason jewelers say they conduct
D. What is driving change, if any, in your approach for jewelers (28 percent), followed market research (42 percent), and most
to marketing? closely by developing the creative jewelers prefer doing so by talking
(26 percent) and choosing media and informally with customers (59 per-
placement for their marketing materials cent), rather than sending surveys or
—By Melissa Shepherd (26 percent). using focus groups.
OV E RV I E W 3
$750,000-$999,999: 9 percent
Urban: 37 percent
$1,000,000 to
10 percent
Suburban: 50 percent $1,499,999:
ABOUT THIS SURVEY: Geographically, responses also fell into three locations—urban, suburban or
NATIONAL JEWELER conducted this survey via e-mail in October 2006 in rural—and into five core market sizes—less than one mile, one to three miles,
conjunction with Zoomerang.com, an online market research service owned three to five miles, five to 10 miles, and greater than 10 miles in diameter.
and operated by MarketTools Inc. of Mill Valley, Calif. Responding to the Other respondents reported selling strictly online.
survey were 204 readers. The survey also grouped respondents by annual per-store sales: less than
Roughly 82 percent of the survey respondents were independent retail $250,000; $250,000-$499,999; $500,000-$749,999; $750,000-
jewelers; 2 percent represented jewelry chains; 1 percent represented $999,999; $1 million to $1,499,999; and $1.5 million or more.
department stores; and the remaining 15 percent included designers, online
retailers, pawn shops, repair shops and similar businesses. Finally, NATIONAL JEWELER cross-tabulated the survey questions by region, by
location, by size of core market and by annual per-store sales to achieve
Grouped geographically, responses fell into four U.S. regions: more in-depth results on marketing practices.
Northeast> CT, ME, MA, NH, NJ, NY, PA, RI, VT
South> AL, AR, DC, DE, FL, GA, KY, LA, MD, MS, NC, SC, OK, TN, TX, VA, WV
Midwest> IA, IL, IN, KS, MI, MN, MO, NE, ND, OH, SD, WI
West> AK, AZ, CA, CO, HI, ID, MT, NV, NM, OR, UT, WA, WY
N AT I O N A L J E W E L E R E X C L U S I V E S U RV E Y: M A R K E T I N G P R A C T I C E S 4
spend 3 percent to 10
South 4.5% 16.7% 24.2% 31.8% 16.7% 3% 3%
putting 5 percent to 7
Rural 11.1% 25.9% 14.8% 33.3% 11.1% 3.7% 0%
into marketing.
Core market size Less than 1% 1-3% 3-5% 5-7% 7-10% 10-15% Other
Less than a mile in diameter 75% 25% 0% 0% 0% 0% 0%
1-3 miles in diameter 25% 8.3% 25% 25% 0% 16.7% 0%
3-5 miles in diameter 0% 25.9% 29.6% 14.8% 11.1% 11.1% 7.4%
5-10 miles in diameter 4.3% 17.4% 21.7% 28.3% 15.2% 10.9% 2.2%
Greater than 10 miles in diameter 9.2% 17.4% 20.2% 30.3% 14.7% 6.4% 1.8%
I sell strictly online 0% 0% 33.3% 33.3% 16.7% 16.7% 0%
per-store sales of $1 million Location Same spend Slightly less Significantly Slightly Significantly Other
or more.
as last year than last year less than more than more than
last year last year last year
Urban 37.3% 13.3% 8% 32% 8% 1.3%
Suburban 31.4% 22.5% 5.9% 28.4% 8.8% 2.9%
Rural 37% 33.3% 11.1% 7.4% 11.1% 0%
SINGLE-VENDOR trunk
shows are the most popular Which of the following types of events do you hold?
type of event among jewelers
surveyed (37 percent), and
5 (Check all that apply.)
the majority (51 percent) also Single-vendor trunk shows: 37 percent
favor special after-hour events
as a way to draw in customers.
Product-themed shows with product 21 percent
from multiple vendors:
Jewelers in the South most
Cross-promotional events partnering 17 percent
co-op funds.
Rural jewelers are least 55 percent
likely to factor supplier dollars
None:
marketing budgets.
Rural 66.7% 29.6% 3.7% 0% 0%
ALTHOUGH 30 percent of
survey respondents say they
What types of market research do you engage in?
don’t engage in market
research, those who do
7 (Check all that apply.)
with customers as
Northeast 31.4% 9.8% 58.8% 31.4% 3.9%
By location
Location Surveys (mail, Focus Informal discussions We don’t do Other
e-mail, phone) groups with customers market research
Urban 25.3% 9.3% 54.7% 36% 6.7%
Suburban 29.4% 12.7% 53.9% 31.4% 6.9%
Rural 29.6% 11.1% 88.9% 11.1% 3.7%
Core market size Surveys (mail, Focus Informal discussions We don’t do Other
e-mail, phone) groups with customers market research
Less than a mile
in diameter 25% 25% 50% 50% 0%
1-3 miles in diameter 33.3% 16.7% 50% 41.7% 0%
3-5 miles in diameter 14.8% 3.7% 55.6% 33.3% 11.1%
5-10 miles in diameter 32.6% 4.3% 73.9% 21.7% 4.3%
Greater than 10 miles
in diameter 27.5% 14.7% 56.9% 32.1% 7.3%
I sell strictly online 50% 16.7% 16.7% 16.7% 0%
80th percentile.
West 90.7% 9.3%
By location
Location Yes No
Urban 89.3% 10.7%
Suburban 91.2% 8.8%
Rural 85.2% 14.8%
of jewelers collect
90% customer information.
N AT I O N A L J E W E L E R E X C L U S I V E S U RV E Y: M A R K E T I N G P R A C T I C E S 13
ALTHOUGH 71 percent of
survey respondents says they If you collect customer data, in which of the
use customer data simply to
maintain general contact
10 following ways do you use it? (Check all that apply.)
with their customers, a good
portion also dig deeper for
To segment our customers for
specific sales/marketing efforts: 48 percent
more specific information 48 percent
on customers.
To determine our best customers:
major consideration, as 61
To maintain general contact
71 percent
percent of jewelers use the
with all customers:
best customers also are Region To segment our To determine To contact our To maintain We don’t collect Other
demographic differences.
Northeast 43.1% 47.1% 52.9% 62.7% 19.6% 3.9%
South 53% 50% 65.2% 69.7% 7.6% 1.5%
Midwest 40.9% 43.2% 61.4% 72.7% 2.3% 6.8%
West 51.2% 48.8% 62.8% 81.4% 9.3% 0%
By location
Location To segment our To determine To contact our To maintain We don't collect Other
customers for our best customers general contact customer data
specific sales/ customers individually with all customers
marketing efforts
Urban 46.7% 45.3% 64% 70.7% 10.7% 2.7%
Suburban 50% 52% 60.8% 75.5% 6.9% 3.9%
Rural 40.7% 37% 51.9% 55.6% 18.5% 0%
all jewelers but most often Region Bulk mailing Individual mailing Telephone E-mail Other
of jewelers e-mail
51% their customers.
N AT I O N A L J E W E L E R E X C L U S I V E S U RV E Y: M A R K E T I N G P R A C T I C E S 15
SURVEY RESPONDENTS
present a mixed bag when it
Within what period of time do you expect to see
comes to the time frame in
which they expect to see a
13 a return on a specific marketing investment?
return on their marketing
investments.While 35 percent 1-3 weeks: 34 percent
expect results over the long
term in the form of brand-
1-2 months: 17 percent
building, another 34 percent
seek almost instant results (1
2-5 months: 10 percent
to 3 weeks) and 27 percent Over the long-term through
think in terms of a few
35 percent
brand building:
months—perhaps as a reflec- Other: 4 percent
tion of short-term advertising.
Suburban and rural jewelers
place slightly more emphasis
By U.S. region
on fast returns than urban Region 1-3 weeks 1-2 months 2-5 months Over the long-term Other
on a long-term marketing
Suburban 36.3% 12.7% 9.8% 34.3% 6.9%
competition as important
Drive traffic for a specific event 3 percent
By location
Location Drive store Drive traffic for Create interest Build/reinforce your Strengthen Drive your business Other
traffic generally a specific event in specific product store’s recognition your position when the market
within the market vs. competition is down
Urban 22.7% 2.7% 5.3% 48% 16% 1.3% 4%
Suburban 28.4% 3.9% 4.9% 39.2% 12.7% 3.9% 6.9%
Rural 25.9% 0% 3.7% 51.9% 18.5% 0% 0%
SURVEY RESPONDENTS
give almost equal weight to
What is your biggest marketing execution challenge?
three marketing challenges:
coming up with an overarching
15
plan, developing effective
materials to support it, and
Devising a master plan 28 percent
AS WITH MARKETING
budget, the majority of
Who is responsible for developing
jewelers surveyed cite the
store owner as the person
17 your marketing creative?
in charge of creative (61 Owner 61 percent
percent), with other staff Other family member 9 percent
members trailing far behind. Designated staff marketing
Outside consultants are coordinator/director 10 percent
only favored by jewelers in Other non-family member
the top sales bracket of $1.5
1 percent
employee
million-plus per store, while Outside consultant/agency 15 percent
those in the $749,999 and Other 3 percent
under range strongly favor
placing responsibility for By U.S. region
developing creative in the Owner Other family Designated Other non-family
hands of an owner or other
Region Outside Other
member marketing staff member employee consultant
family member.
Northeast 66.7% 2% 5.9% 2% 23.5% 0%
South 60.6% 7.6% 10.6% 1.5% 12.1% 7.6%
Midwest 54.5% 18.2% 13.6% 0% 11.4% 2.3%
West 62.8% 11.6% 11.6% 0% 11.6 2.3%
By location
Location Owner Other family Designated Other non-family Outside Other
member marketing staff member employee consultant
Urban 68% 2.7% 8% 0% 18.7% 2.7%
Suburban 55.9% 11.8% 13.7% 1.% 12.7% 4.9%
Rural 63% 18.5% 3.7% 3.7% 11.1% 0%
ALTHOUGH 60 percent of
respondents report that they
Do you work with an outside consultant/agency for
don’t work with an outside
consultant or agency on
18 any of the following? (Check all that apply.)
their marketing strategies, Developing a master
those who do say developing
15 percent
marketing plan
the creative is the main Developing the creative 29 percent
reason (29 percent).
This trend is seen across
Placement 19 percent
the demographics; however,
We do not work with an outside
60 percent
notably, jewelers with a core
marketing consultant/agency
(22.5 percent).
West 11.6% 32.6% 14% 58.1% 4.7%
By location
Location Developing a master Developing Placement We do not work with Outside
marketing plan the creative an outside marketing
consultant/agency
Urban 16% 30.7% 14.7% 62.7% 4%
Suburban 15.7% 31.4% 22.5% 54.9% 6.9%
Rural 7.4% 18.5% 14.8% 70.4% 3.7%
By size of core market
Core market size Developing a master Developing Placement We do not work with Outside
marketing plan the creative an outside marketing
consultant/agency
Less than a mile in diameter 0% 0% 0% 100% 0%
1-3 miles in diameter 8.3% 25% 8.3% 75% 0%
3-5 miles in diameter 3.7% 14.8% 14.8% 70.4% 3.7%
5-10 miles in diameter 13% 28.3% 15.2% 58.7% 6.5%
Greater than 10 miles
in diameter 19.3% 34.9% 22% 55% 6.4%
I sell strictly online 16.7% 33.3% 33.3% 50% 0%
most often rating them as Location Essential or very Somewhat Not very Unnecessary Do not
increasing sales.
Midwest 4.8% 40.5% 4.8% 9.5% 40.5%
West 7.3% 26.8% 4.9% 12.2% 48.8%
By location
Location Very effective Somewhat Somewhat Ineffective Does not
effective ineffective apply
Urban 5.8% 20.3% 2.9% 14.5% 56.5%
Suburban 11.2% 32.7% 9.2% 9.2% 37.8%
Rural 7.7% 34.6% 3.8% 3.8% 50%
OTHER RESPONSES: Charity auctions, sponsorships, OTHER RESPONSES: fashion trends, new product,
fundraisers, gifts to special visitors, platinum rewards, shift toward “value” shopping, e-mail/Internet,
word of mouth, 100 percent face-to-face event marketing, outdoor marketing, no change