Operation Workout On Jewellery Shop.
Products
1) All kinds of gold and silver ornaments
2) Titanium ornaments and Gift articles
Introduction :
• To compare marketing strategies of both the jewelers.
• A study on the influence of power in managing employees.
• Using Time Series Analysis to find out the trend in the sales of both the jewelers & draw a conclusion.
• Data analysis – trend chart of QM.
• Sources of funds generated by owners.
• To write a formal letter to the mall seeking permission to conduct above survey.
• To find out the promotional elasticity of demand.
Summary :
We have carried out our operation workout on 29th Sep’08 at 6pm in Raghuleela Mall located at Kandivali. The shops visited were Kamlesh Jewellers & Dhanlaxmi Jewellers.
Kamlesh Jewellers has completed its 2yrs of operations in the mall. &
Dhanlaxmi would complete 1yr in November.
Both the shops strive to keep their customers happy & provide them the best service.
Marketing Strategy :
Strategies adopted by both the jewellers are :
Kamlesh Jewellers –
On every purchase of above Rs.10000/- an assured gift of Glass set or Travel bag. (Scratch card offer).
Making changes –
Kamlesh Jewellers do not levy making changes for Marriage & Festive seasons.
Lucky draw –
Every Dasshera Kamlesh Jewellers organizes a lucky draw & the winner is gifted with 5gm gold coin.
Dhanlaxmi Jewellers –
Dhanlaxmi Jewellers has a unique strategy i.e. on purchase of above Rs.10000/- customer gets an silver ring absolutely free.
Legitimate Power :
Upon enquiring with both the jewelers we learned that there is no such concentrated power amongst the employees. They share a very cordial relationship with everyone in the organization. A schedule is prepared & the employees abide by it. In case of any offs or swaps they report to their respective managers. Most of the rules & regulations are governed by Raghuleela Mall.
Finance Manager :
The owner himself mobilizes his funds. He rolls his money on credit & has smart understanding with his suppliers.
Generally he is not much interested to resolve on credit, however a general reserve is always maintained. Salaries are paid on time to workers & artists.
The owner borrows money from his relatives and gives them low rate of interest
The owner said he rarely takes loan from banks.
PROMOTIONAL ELASTICITY OF DEMAND
The point formula for advertising elasticity of demand is :
eA = Change in quantity of goods sold
Change in units of advertising exp
Where Q = Quantity of goods sold
A = Units of advertising expenditure on the good
The main purpose behind this formula is to understand the, change in quantity demanded when the advertising expenses are increased or decreased.
Shop 1
(Q2-Q1)/(A2-A1) *A1/Q1
=669-458/65-40*40/458
=211/25*40/458
=8440/11450
=0.74<1
Shop 2
(Q2-Q1)/(A2-A1) *A1/Q1
555-375/55-35*35/375
=180/20*35/375
=6300/7500
=0.84<1
By calculating we conclude that the money spend on the promotional activity do not have much effect on the sale.
Products
1) All kinds of gold and silver ornaments
2) Titanium ornaments and Gift articles
Introduction :
• To compare marketing strategies of both the jewelers.
• A study on the influence of power in managing employees.
• Using Time Series Analysis to find out the trend in the sales of both the jewelers & draw a conclusion.
• Data analysis – trend chart of QM.
• Sources of funds generated by owners.
• To write a formal letter to the mall seeking permission to conduct above survey.
• To find out the promotional elasticity of demand.
Summary :
We have carried out our operation workout on 29th Sep’08 at 6pm in Raghuleela Mall located at Kandivali. The shops visited were Kamlesh Jewellers & Dhanlaxmi Jewellers.
Kamlesh Jewellers has completed its 2yrs of operations in the mall. &
Dhanlaxmi would complete 1yr in November.
Both the shops strive to keep their customers happy & provide them the best service.
Marketing Strategy :
Strategies adopted by both the jewellers are :
Kamlesh Jewellers –
On every purchase of above Rs.10000/- an assured gift of Glass set or Travel bag. (Scratch card offer).
Making changes –
Kamlesh Jewellers do not levy making changes for Marriage & Festive seasons.
Lucky draw –
Every Dasshera Kamlesh Jewellers organizes a lucky draw & the winner is gifted with 5gm gold coin.
Dhanlaxmi Jewellers –
Dhanlaxmi Jewellers has a unique strategy i.e. on purchase of above Rs.10000/- customer gets an silver ring absolutely free.
Legitimate Power :
Upon enquiring with both the jewelers we learned that there is no such concentrated power amongst the employees. They share a very cordial relationship with everyone in the organization. A schedule is prepared & the employees abide by it. In case of any offs or swaps they report to their respective managers. Most of the rules & regulations are governed by Raghuleela Mall.
Finance Manager :
The owner himself mobilizes his funds. He rolls his money on credit & has smart understanding with his suppliers.
Generally he is not much interested to resolve on credit, however a general reserve is always maintained. Salaries are paid on time to workers & artists.
The owner borrows money from his relatives and gives them low rate of interest
The owner said he rarely takes loan from banks.
PROMOTIONAL ELASTICITY OF DEMAND
The point formula for advertising elasticity of demand is :
eA = Change in quantity of goods sold
Change in units of advertising exp
Where Q = Quantity of goods sold
A = Units of advertising expenditure on the good
The main purpose behind this formula is to understand the, change in quantity demanded when the advertising expenses are increased or decreased.
Shop 1
(Q2-Q1)/(A2-A1) *A1/Q1
=669-458/65-40*40/458
=211/25*40/458
=8440/11450
=0.74<1
Shop 2
(Q2-Q1)/(A2-A1) *A1/Q1
555-375/55-35*35/375
=180/20*35/375
=6300/7500
=0.84<1
By calculating we conclude that the money spend on the promotional activity do not have much effect on the sale.