MASTER OF BUSINESS ADMINISTRATION

AWARDED BY NOTTINGHAM TRENT UNIVERSITY

ASSIGNMENT SUBMISSION FORM

Note: Students must attach this page to the front of the assignment
before uploading to WECSERF.
For uploading instructions please see the help file online

Name of Student: Leong Lai Yin

Student Registration Number: KL102627

Module Name: CISM

Module Number: WEC-MBA

Assignment Title:

Submission Due Date: 27 February 2011

Student’s Electronic Signature:      

Plagiarism is to be treated seriously. Students caught

plagiarizing, can be expelled from the programme
 MSM Assignment: Prepared by Leong Lai Yin

Contents

Table of contents Page

Executive summary 1
Introduction 2
About Trecor Services Malaysia Sdn Bhd 3
PESTLE analysis 4
• Market Review
Literature Review 6
• Global Market Enviroment
Analysis and Finding 9
• Entry mode
• Indonesia
• Mission Statement
• Corporate Objectives
• SWOT Analysis
- External (Business Environment) Factors
- Internal Factors
• Competitive Edge
• Market Segmentation
• Marketing Mix Strategy
- Position strategy
- Product strategy
- Pricing Strategy
- Promotion Strategy
- Place/Distribution Strategy
- Sales Strategy
Conclusions 19
Reference 20

1
 CISM Assignment: Prepared by Leong Lai Yin

Jewellery Marketing Plan

Elodiaz Design

Executive Summary

Introduction
Elodiaz Design Marketing Plan

Elodiaz Design is a designer and manufacturer of unique titanium jewellery. Elodiaz

Design makes many designs in the form of earrings, pins, and pendants. All of the
products are designed and manufactured locally by Florence Chua. Each piece of
jewellery is a piece of art in itself, very special and unique. Most people will feel that
Elodiaz's pieces are like nothing else they have ever seen. Elodiaz will be selling
directly to end consumers through website as well as at exhibitions and shows.
Elodiaz will also use galleries, museum shops, and specialty jewellery retailers as a
distribution channel to reach the customers. Elodiaz will be operating out of her
home. For the first eight months they will be a one-man show. Elodiaz will welcome
an independent sales representative on month eight to allow their designer to spend
more time at home designing and constructing.

Mission

Elodiaz Design's mission is to make innovative pieces of art in jewellery using

titanium. We exist to attract and maintain customers through creative designs and
customer attention. When we adhere to this maxim, everything else will fall into
place. Our services will exceed the expectations of our customers.

1
 CISM Assignment: Prepared by Leong Lai Yin

Segmentation, Targeting & Positioning

Situation Analysis

Elodiaz Design is a start-up company operating out of the owner's home. Marketing
will be primary objective to raise visibility and creating awareness of Elodiaz Design
and their products to increase sales. This unique titanium offers for unusual pieces of
art jewellery crafted to meet the market needs and to create demand. Titanium is used
because of its hypoallergenic qualities and it is ideal for necklaces and earrings that
touch the skin because of its incredible strength and light weight.

Customers have unique requirements, aspirations and satisfaction levels. Some

customers, though, are “similar”: they have common requirements for goods, services
and ideas (Dibb S. and Simkin L.,). If these customers' needs can be clearly identified
and those with similar needs grouped in quantities of sufficient sizes, market
segments have been determined. Each customer group – or market segment – has
specific expectations and retail marketers must develop retail brands and concepts
which cater for the needs of the segment targeted. Having decided on which segment
(or segments) to target, retailers position their brands with an image with which the
targeted customers identify. Market segmentation, targeting and positioning is a
fundamental process in modern retail marketing strategy. The key decisions and the
steps necessary for successful implementation are examined.

Market Summary

Elodiaz Design has a lot of information regarding the market and attributes concerns
their target customers. This information will be leveraged to continually determine
who the customer is, their specific needs, and how Elodiaz Design can best
communicate with them.

Figure 1.1

2
 CISM Assignment: Prepared by Leong Lai Yin

Market Needs

Elodiaz Design is providing its customers with innovative, creative, handmade

jewellery. It will provide the following benefits to their customers:
Selection: A wide range of jewellery styles, creations, and anodizing schemes.
Accessibility: Elodiaz design sells direct to the consumer, through a network of
art/jewellery galleries, and at art fairs and shows.
Customer service: The patron will be impressed with the level of attention and
service that they receive. This level of service occurs during all transactions with
Elodiaz designs from answering questions, to order taking, to warranty repairs.
Competitive pricing: The pricing structure provides the consumer with a good value
for handmade jewellery and the craftsmen with a fair profit.
Market Trends
The market trend within the jewellery industry is a movement toward custom, unique
pieces as well as limited production items. This trend is in response to the climate of
the industry in the mid-nineties where the jewellery market was flooded with
thousands of identical pieces of jewellery. Within a few years, people were running
into others who had the same piece of jewellery. This element of commonality or
"run of the mill-ness" fueled demand for artistic jewellery that was in low production
and unique, not something that you would see very often.
Customers are using similar pieces of jewellery as a way of creating distinction from
the common population, a way to stand out. This desire is part of a broader desire to

3
 CISM Assignment: Prepared by Leong Lai Yin

be different. Elodiaz Design has leveraged this trend by creating unique pieces that
are distinct.

Market Growth

The artistic jewellery segment of the larger jewellery industry is growing at a healthy
9%. This growth can be attributed to the value that people place on having
distinctive, unique pieces of jewellery.
Another factor that is supporting the growth is the blending of art and jewellery.
Traditionally jewellery was ornate pieces made out of precious metals. The nice
pieces were a symbol of wealth or status. As long as the piece was made out of a
precious metal, there was value attributed to the piece just by virtue of what it was
made out of, regardless of the creativity of the actual piece. The younger population
that recognizes the aesthetic value of art work is now demanding jewellery to have
artistic elements. In essence it is art that you wear. These trends are helping the
industry grow.

4
 CISM Assignment: Prepared by Leong Lai Yin

SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within the
company, and describes the opportunities and threats facing Elodiaz Design.
Strengths Weaknesses
- Unique designs and construction - A large portion of the target
methods. market that is unaware of Elodiaz
- Strong relationships with Design's products.
suppliers as well as galleries. - Limited time and budget to
- The flexibility to provide market the company to the
customises pieces. segmented target population.
- A comprehensive distribution - The struggle to constantly create
network from a robust website new designs.
and a network of galleries - The possible inability to meet
demand due to the small size of
the company.
- to a large degree, is unaware of
Elodiaz Design.
-

Opportunities Threats
- A growing market that, The - A decrease of availability of raw
possibility to grow the size of the materials due to demand from
company so is spending his time other industries.
creating and allowing others to - Artistic copycats that enter the
deal with the administrative market and mimic Steve's designs.

5
 CISM Assignment: Prepared by Leong Lai Yin

details. - A slowdown of the economy that

- The injection of fresh, creative will have a reduction on
designs in a somewhat stagnant individual's discretionary income
industry. - Industry Rivalry
- Constant Price War
- Integration with suppliers
(backward vertical integration)
- Rapid changes in design

Put it into porters 5 forces to minimise word counts.

Competition and Buying Patterns

As previously stated the jewellery industry is composed of thousand upon thousands

of people. Some work and distribute locally, others have national distribution systems
set up. Some artists will design products for larger companies to manufacture, others
will design and make the pieces themselves. This plan will have an abridged
competition section. This is because of the very large and distributed nature of artisan
jewellery design, the market is entirely too dispersed to have a complete catalog of the
competition.

Competition takes the following forms:

Artists creating designs that are manufactured on a large scale and distributed
nationally. The artists might be famous enough to have their own one-name studio
that creates designs and the product is made and sold under the larger companies
name. If the artist is not famous enough to have national name recognition, the
designers might belong to a firm that is hired to develop designs for a company who
will manufacture and sell the product.
A company that has their own designers in-house. In this case everything is done
internally, design, marketing and wholesaling. Another variation would be in-house
designers, marketers and wholesalers with the manufacturing contracted out.

6
 CISM Assignment: Prepared by Leong Lai Yin

Artists such as Steve who design and make all of the pieces themselves, and then do
the wholesaling or retailing themselves. In essence, one-man shows.
The buying patterns of consumers fall typically into two types. Gifts and impulse
purchases. A gift purchase occurs when the buyer is looking for a gift for someone,
sees the art piece, and then purchases it. In this case the plan is to make a purchase, it
is just not known what or where that purchase will be made. The other buying pattern
is an impulse purchase. Someone will be shopping, they are not in need of anything,
will see the item and have to have it, buying it on the spot. One last pattern, that
occurs less frequently is if someone was looking for an "accessory" that would match
an outfit and happens to come across the piece of jewellery and buys it.

Product Offering

Elodiaz Design manufactures titanium jewellery. The jewellery takes the form of
pendants, earrings, and pins. All of the jewellery is made out of titanium. All of the
products are designed and made by Elodiaz Design.
Elodiaz has chosen titanium because of its unique characteristics. It is stronger than
steel, yet similar in weight to aluminum. It is inert and hypoallergenic.
Most of the jewellery is left unfinished. The gray of the titanium by itself looks quite
nice. Some of the pieces are anodized. Anodizing adds a broad range colors to the
titanium. Anodizing occurs by immersing the titanium in electrically charged water or
hooking up the titanium to a electrical power source. When charged with electricity, a
light film or oxide will form on the surface of the titanium and this produces color.
Elodiaz Design's pieces are constructed out of titanium sheets. The material is cut
using a saw blade. The interior of the pieces are cut by piercing a small hole through
the interior and inserting a saw blade. All pieces are made form several pieces of
titanium. The pieces are held together by rivets. Small holes are drilled through the
different pieces and a small wire (rivet) is inserted through. The head and end of the
rivet is tapped with a hammer and that enlarges the end holding the pieces together. In
addition to the utility of the rivet, it is aesthetically pleasing in terms of the overall
look of the piece.
Keys to Success
Customer service.
Unique designs.

7
 CISM Assignment: Prepared by Leong Lai Yin

Creativeness.
Professionalism.
Critical Issues
Elodiaz Design is still in the speculative stage as a start-up venture. Its critical issues
include continuing to take a modest fiscal approach, expanding at a reasonable rate,
not for the sake of expansion in itself, but because it is economically wise to. Elodiaz
Design will continue to build brand awareness to assure growth in the customer and
gallery base.

Marketing Strategy

Elodiaz Design will rely on three forms of marketing activities. The first will be
attendance (including promotion with a booth) at the various art shows and festivals
through out the country. This form of marketing/promotion is an efficient way to
reach target customers as well as generate sales at these events.

A second form of marketing is the use of the website which will be a source to
disseminate information, increase visibility, and process orders. The website will be
submitted to various search engines so people that are not even looking specifically
for Elodiaz Design will come across the site.

A third source of marketing will be networking and promotion through the network of
art/jewellery galleries. Initially Steve will be generating relationships with galleries.
Elodiaz Design will visit numerous galleries in many major cities and recruit them to
sell Steve's product. While the margins are smaller than if Elodiaz Design sells the
piece direct, the galleries will help significantly increase the volume of sales.
Aim is to increase overall sales by 20% in the next marketing year or financial year
compared to the previous year. To sell 100 pieces units of personal jewellery pieces
and 200 pieces of jewellery in the Malaysian market from Feb 2011 to March 2012.

Marketing Objectives

8
 CISM Assignment: Prepared by Leong Lai Yin

Increase the number of participating galleries by 8% a quarter after year one.

Increase Web traffic and sales by 5% each month.
Increase the amount of sales relative to marketing expenses steadily every quarter.

Financial Objectives
A 15% increase in productivity.
A decrease in variable costs through operating efficiencies.
An increase in sales, enough to warrant the hiring of additional people to take on
administrative details, allowing Steve to concentrate on his art work.

Target Markets
Elodiaz Design will be focusing on two distinct groups of customers: the end
consumer, and galleries (galleries to be used as a distribution channel). The end
consumer will be interacting with Steve via his website as well as through personal
contact at exhibitions/shows. The galleries (also museum shops, jewellery stores) will
also be met through the exhibitions and shows. At these events a long-term
relationship will be entered into so that the shops become a retail distribution channel
for Elodiaz Design. Additionally, Elodiaz Design will be traveling the country
meeting with different galleries and setting up retailing relationships with them.

Positioning

Elodiaz Design will position itself as a creative constructor of artistic titanium

jewellery. Collectors of artistic jewellery will appreciate Elodiaz Design's unique
approach to wearable art.
Elodiaz Design will leverage its competitive edge:
It is based on creative, unusual designs. While this strategy can be replicated, it is not
easy. Creative, unusual designs require skill.
Steve is very skilled in what he does, and every piece that he manufactures
incorporates an element of creative, unusual, eye-catching design that stands out from
most jewellery.
Strategies

9
 CISM Assignment: Prepared by Leong Lai Yin

The single objective is to position Elodiaz Design as an innovative, unique artistic

jeweler. This positioning is for the entire United States, the geographic region that
Elodiaz Design seeks to serve. The marketing strategy will seek to create customer
awareness regarding unique products offered, develop the customer base, and work
toward building a network of galleries as distributors.

The message that Elodiaz Design will communicate is that Ti Designs is a unique,
custom craftsmen of artistic jewellery. This message will be communicated through a
variety of methods. The first is through promotion and sales at various art shows and
festivals throughout the country. This method will be useful as it carefully targets one
segmented target population.

Another method will be the building of a gallery network that will serve as a
distributor for Ti's designs. Once this is established, this will be an effective sales
outlet. The last method for communicating Ti Design's positioning message is through
their website. This website will provide unlimited geographic coverage and is a
wealth of information regarding all of Steve's products. Additionally, it will serve as
a mechanism for order placement.

Marketing Mix

Elodiaz Design's marketing mix is comprised of the following approaches to pricing,

distribution, advertising and promotion, and customer service.
Pricing: The pricing scheme will be based on the cost of the raw materials and the
amount of time required to construct the piece.
Distribution: The products will be distributed via the website, at the booth that Ti
Designs mans, and through a network of galleries.
Advertising and Promotion: The avenues of distribution will also serve as the
methods for advertising and promotion.
Customer Service: Obsessive customer attention is the mantra. Ti's philosophy is
complete customer satisfaction. This will occur at whatever cost. Even if this does
not make sense relative to short-term profits it will be done, recognizing that this
attitude will only bolster long-term business health.

10
 CISM Assignment: Prepared by Leong Lai Yin

Marketing Research

During the initial phases of the marketing plan development, several focus groups
were held for both consumers of artistic jewellery as well as buyers from galleries.
These focus groups provided useful insight into the decision making process of these
target customers.
Steve also spent two months on the road participating in various art shows and
festivals with many different prototype pieces. This road show occurred to determine
customer acceptance of the product as well as to gauge demand. This information
was then analyzed to determine business feasibility.
The last source of marketing research involves road show and surveys that were
handed out at the fairs and shows. The purpose of the survey was to collect
information regarding buyers preferences, likes and dislikes regarding the designs,
and price preferences of the products.

Financials

This section will offer a financial overview of Elodiaz Design as it related to the
marketing activities. Ti will address break-even analysis, sales forecasts, expense
forecasts, and how those link to the marketing strategy.
Break-even Analysis
The Break-even Analysis indicates that $4,000 is needed in monthly revenue to reach
the break-even point.

11
 CISM Assignment: Prepared by Leong Lai Yin

Break-even Analysis

Monthly Revenue Break-even $3,411

Assumptions:
Average Percent Variable Cost 32%
Estimated Monthly Fixed Cost $3,400

Sales Forecast

The first month will be spent setting up the work quarters and building inventory.
There will be no sales. The second month will be spent traveling visiting galleries
trying to set up distribution channels. There will be no sales activity in month two as
well. Month three will mark the first month of sales activity. Steve will have been to
exhibits and sold products, as well as sales through the website. From month three on
sales will increase incrementally. Steve will be on the road usually about a week per
month traveling to galleries and exhibits. This will occur till month eight. Month
eight will mark the time when Steve will hire a sales representative to do the traveling
to set up distributors and attend exhibitions to allow Steve to concentrate on his
design and production. Month eight will mark a larger increase in sales.

12
 CISM Assignment: Prepared by Leong Lai Yin

Sales Forecast
2001 2002 2003
Sales
Retailers (galleries) $21,566 $38,874 $45,785
Individuals $17,708 $23,545 $29,874
Total Sales $39,274 $62,419 $75,659

Direct Cost of Sales 2001 2002 2003

Retailers (galleries) $6,939 $5,831 $6,868
Individuals $5,646 $3,532 $4,481
Subtotal Direct Cost of Sales $12,584 $9,363 $11,349

Expense Forecast

Marketing expenses are to be budgeted accordingly:

Art shows and art festivals: these expenses will ramp up around the ten major shows
throughout the year. Expenses will include travel costs, booth construction, and
entry/promotion fees.
Website: these expenses will be fairly flat the entire year and go to the maintenance of
the site.
Gallery promotion: these expenses are primarily travel and networking expenses and
will vary month to month depending when trips are scheduled.

13
 CISM Assignment: Prepared by Leong Lai Yin

Marketing Expense Budget

2001 2002 2003
Art shows and festivals $3,400 $4,000 $4,500
Website $900 $900 $900
Other $850 $1,300 $1,600
------------ ------------ ------------
Total Sales and Marketing
$5,150 $6,200 $7,000
Expenses
Percent of Sales 13.11% 9.93% 9.25%

Controls

The purpose of Elodiaz Design's marketing plan is to serve as a guide for the
organization. The following areas will be monitored to gauge performance:
Revenue: monthly and annual.
Expense: monthly and annual.
Repeat business.
Customer satisfaction.
Word of mouth referrals
Implementation
The following milestones identify the key marketing programs. It is important to
accomplish each one on time, and on budget.

Milestones

Advertising Start Date End Date Budget Manager Department

Marketing plan completion 1/1/2001 2/1/2001 $0 Steve Department
Website completion 1/1/2001 2/1/2001 $900 Steve Department
Art show/festival activities 1/1/2001 ongoing $3,400 Steve Department
Gallery networking 1/1/2001 ongoing $900 Steve Department
Name me 1/1/2003 1/15/2003 $0 ABC Department
Name me 1/1/2003 1/15/2003 $0 ABC Department

14
 CISM Assignment: Prepared by Leong Lai Yin

Name me 1/1/2003 1/15/2003 $0 ABC Department

Name me 1/1/2003 1/15/2003 $0 ABC Department
Name me 1/1/2003 1/15/2003 $0 ABC Department
Other 1/1/2003 1/15/2003 $0 ABC Department
Total Advertising Budget $5,200
PR Start Date End Date Budget Manager Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Other 1/1/2006 1/15/2006 $0 ABC Department
Total PR Budget $0
Direct Marketing Start Date End Date Budget Manager Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Other 1/1/2006 1/15/2006 $0 ABC Department
Total Direct Marketing
$0
Budget
Web Development Start Date End Date Budget Manager Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Other 1/1/2006 1/15/2006 $0 ABC Department
Total Web Development
$0
Budget
Other Start Date End Date Budget Manager Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Other 1/1/2006 1/15/2006 $0 ABC Department
Total Other Budget $0
Totals $5,200

15
 CISM Assignment: Prepared by Leong Lai Yin

Contingency Planning
Difficulties and risks:
Problems generating visibility.
Change in customer preferences.
Inability to keep up with demand.
Worst case risks may include:
Determining the business cannot support itself on an ongoing basis.
Forced to sell assets to cover liabilities.

Reference:

• Senge, Peter., (1990), The Fifth Discipline; The Art & Practice of The
Learning Organisation, 1st Edition, Paperback, United States

16
 CISM Assignment: Prepared by Leong Lai Yin

• Taylor, Susan & Consenza M. Robert (2002) Journal of Consumer Marketing

Vol.19 No.5 2003 pp.393-408

• Peter Johes, Peter Shears, David Hillier and Colin Clarke-Hill (2002)
“Customer perceptions of services brands: a case study of J.D.Wetherspoons”
Bristish Food Journal, Vol104 No.10, 2002, pp.845-854

• Maxwell, John C. (1995), Developing the Leaders Around You, Thomas

Nelson, Nashville, Tennessee

• Burnes, B. (2004), Culture, power, politics and choice. In Managing Change:

A Strategic approach to organisational dynamics, 4th Edition, Prentice Hall,
Essex

• Len Tiu Wright and Clive Nancarrow(1999) “Researching international,

“brand equity” : a case study” International Marketing Review,Vol.16 No.4/5,
1999, pp.417-431

• Julian Bond and Leigh Morris (2003) “A class of its own: latent class
segmentation and its implications for qualitative segmentation research”
Qualitative Market Research: An international Journal Volume 6. Number2.
2003.pp.87-94.

• Gregory E.Osland, Charles R. Taylor and Shaoming Zou “Selecting

international modes of entry and expansion” Marketing Intelligence &
Planning 19/3, 2001, pp 153-161

• Schein, E.H. (1994), Organisational culture, In W.L. French., C.H.Bell Jr. &
R.A.Zawacki (Eds), Organisational Development and transformation:
Managing effective change, 4th Edition, Wiley Periodicals, Illinois, Irwin

17
 CISM Assignment: Prepared by Leong Lai Yin

• Kriegel, R., & Brandt D. (1996), The team cow. In Sacred cows make the best
burgers (pp. 118-128), Harper Business, Sdyney, Australia

• Hellriegel, D., Slocum, J. W. Jr., Woodman, R.W. (1995). The challenge of

change. In Organisational behaviour, 7th Edition, St Paul:West

• Eisenberg, H. (1997), Extract from Reengineering and dumbsizing:

Mismanagement of the knowledge resource. Quality progress, 30(5), (pp57-
64)

• Gary A.Knight (1999) “Consumer Preferences For foreign And Domestic

Products” Journal Of Consumer Marketing,Vol.16 No.2 (pp 151-162)

• David S. Waller and Kim Shyan Fam (2000) “Cultural Values and Advertising
in Malaysia: Views from Industry” Asia Pacific Journal of Marketing and
Logistics, Volume12, No.1 (pp3-16)

• Kotler, Philip & Armstrong, Gary (2009) Principles of Marketing “A Global

Perspective” (pp160-550)

• Google (2010) < http://www.google.com.my > accessed by 14 July 2010 to 12

August 2010

• Wikipedia (2010) < http://en.wikipedia.org/wiki/Competitive_advantage >

accessed by 8 August 2010 to 12 August 2010

• Wikipedia (2010) < http://en.wikipedia.org/wiki/Michael_Porter > accessed by

12 August 2010

18