PNJ JEWERY

PNJ Silver’s necklace

[DATE]
[COMPANY NAME]
[Company address]
TABLE OF CONTENT
I.INTRODUCTION

II.SWOT ANALYSIS

III. TARGET CUSTOMER

IV. DIFFERENTIATION AND POSITIONING

V. CURRENT 4PS PERFORMANCE

VI. MARKETING OBJECTIVES

VII. RECOMMENDATION
I.INTRODUCTION
PNJ is the largest manufacturer and distributor of jewelry in Viet Nam. Phu Nhuan Jewelry Shop
was established in 1988 when the jewelry industry is still in its infancy. Since then, the brand
has constantly been promoting and resonating in the industry not only in Vietnam but also
gaining global customer’s trust through the expansion of their market to United State, United
Kingdom, Germany. With Ms. Cao The Ngoc Dung - the chairman of PNJ corporation, its slogan
is ‘Trust and Style’ which towards to the mission of bringing satisfaction to customers by
providing exquisite and diversifying jewelry products with outstanding quality and reasonable
price. PNJ jewelry offers a wide range of products from diamond, silver, and gold with diverse
categories such as necklace, ring, watch, and corporate girts. However, this marketing project
will focus on the current performance of PNJ Silver’s necklace and develop marketing plan for
this product in Valentine occasion of 2021.

II.SWOT ANALYSIS

STRENGTH WEAKNESS

- According to Jewellery & Watch and -Diamond, gold, silver or other precious
Fashion-the biggest dedicated trade event in and semi-precious metals and stones are
the UK, consumers start focusing their affected by the fluctuation in source and
attention on the shopping process and how cost (MarketLine 2020), which means there
they feel about the business after becoming will be slowdown in supply process.
customers. With a wealth of experience in the
jewelry industry and numerous prestigious
awards they have achieved, PNJ
indisputably is a strong brand and having
a good reputation in mind of Vietnamese
consumer, this can be considered as a
strong motivation and highly competitive
possibility of PNJ in the Valentine occasion.
  
-PNJ corporation has a large retail
network of outlets spread across the
country, there are 346 retail stores that
mainly converged in the central cities (PNJ
n.d.). PNJ brand’s extremely wide networks
increases the convenience of customer to
find PNJ stores in shopping malls or central
locations and the brand itself can easily get
access to new potential customers.

OPPOTURNITY THREAT
 -PNJ company emphasis on creating many - On the valentine, Jewelry is the fifth
advertising campaigns, their most well-known most attractive gift below candy, flower,
and successful campaign is “True Love” greeting card, and an evening out
which was played at New York Time Square. (National Retail Federation 2020), it means
Its campaign was awarded the best global there is harshness of competitive opportunity
PR campaign for PNJ with other industry on Valentine,
(https://thoibaonganhang.vn2020). Moreover, especially during economic declination,
the collaboration with Walt Disney Global people are more cautious on spending.
entertainment corporation has brought - The new generation of customers
Vietnam’s jewelry industry to the world. This prefer spending money on experience and
makes an opportunity for PNJ to show their technology than purchase a piece of
highly professional and outstanding jewelry that will last a lifetime (Jewellery &
marketing campaign among businesses in Watch and Fashion). This is a challenge for
Viet Nam and at the same time affirms their PNJ to promote their products that can
reputation to the world. integrated with these demands and redirect
- The digital purchases of personal customer’s attention to their products.
accessories globally has increased to 60%
during the pandemic (passport), this helps
PNJ’s online channels for promoting online,
live-stream, home delivery strategies become
highly productive, especially during
Valentine's Day(PNJ march 2020 business
performance).
- In 2021, Asia’s luxury and fashion
companies will lead in recovery after
emerging from the pandemic and jewelry
is expected to rebound sharply (Passport
2020), this is not only affecting the company’s
growth in sales but might set a new record on
revenue on Valentine 2021.

III. TARGET CUSTOMER

PNJ Silver was like a young modern girl who always leads the fashion trend with various and
stylish jewelry and accessories is what PNJ silver said about their product (PNJ sustainability
report). Therefore, it is easily recognized that PNJ using concentrated marketing strategy on
PNJ silver’s necklace that mainly focus on group of young female customers from ages of 15-
25, who love fashion, passionate about express their personalities and mostly from middle-
income class .Through PNJ Silver social media pages and their official website, PNJ launches
products and collections depends on events or messages such as Valentine, Christmas, or
unique Friendzone Breaker collection which is most suitable for young, stylish girl. Therefore,
this target customer is young people, and they have shopping mood, the feature besides the
quality as the experience customers gained from using PNJ Silver’s necklace and reasonable
price are also be considered as on PNJ Silver’s websites, they also add the value to each
collection and offers variety type of promotions. On Valentine, there are 57-62% of people from
the age of 18-34 who celebrated this occasion and purchased jewelry as a gift, higher than
group of people above 35, according to National Retail Federation Valentine 2020 data center,
which means that this target segment is the most potential for PNJ Silver’s necklace.

IV. DIFFERENTIATION AND POSITIONING

 Differentiation
PNJ Silver’s necklaces are presented through a wide range of collection such as Fantasia,
Friendzone Breaker, Music Lovin’ for the purpose of responding to different interests and
personalities of customers, this is also be stated by the CEO of PNJ that sales campaigns of the
company have been targeted to individual audiences, reaching more directly, and personalized
(Brands Vietnam). According to the Worldwide journal’s research on consumer behavior in
jewelry marketing, clients make direct transaction without shopping around. Therefore,
constantly launching new collections is a distinguish factor of PNJ Silver that attracts the
awareness of customers among their competitors, especially on special occasions like
Valentine. Different from many other jewelry retailers, PNJ corporation owned up to 70%
jewelers of the whole country, there are 6 out of 9 artists who were conferred by the President
with the title of Excellence in the jewelry industry across the country also belong to PNJ (PNJ),
with a team of top professional jewelers in the industry, necklaces produced by PNJ confidently
achieve the sophistication and exceptional quality in the design. Another key factor contributed
to the successful of PNJ Silver is their large retail network,42 stores are being activated
nationwide (PNJ). Currently, in Vietnam, none of the silver brands can reach that number of
stores spreading across the country, the second silver jewelry brand behind PNJ Silver in terms
of store’s quantity is Kat Jewelry which owning 11 stores.

 Positioning
It can be seen from two maps that the silver necklaces of PNJ and Pandora are the two most
prominent products considered to be high-end in the silver jewelry industry among other brand
such as Kat, LANN, Maison jewelry. Even though PNJ Silver’s necklace offers high quality and
variety of options as well as their nationwide distribution, its price still be maintained at
reasonable level as flexibly ranges from budget to slightly expensive. By applying “More for the
same” strategy, PNJ Silver’s necklace products are able to target the middle-income class
effectively.

expensive Wide
collection

Normal
High
quality
coverage
Premium Low
quality coverage

Few
collection
budget
 Positioning 1: price & quality Positioning map 2: Coverage and Collection

V. CURRENT 4PS PERFORMANCE

 Product
Today customer buying jewelry not to please someone but for self-gifting, which contributed to
the growth in personalized jewelry (Jewelry & Watch and Fashion 2019), this is also the core
value that PNJ Silver necklace products is fetching. The distinctive characteristic of PNJ Silver’s
necklace is their diversity of stories throughout a wide range of collections which giving a sense
of closeness and understanding to the basic demands such as self-esteem and self-
actualization of the young girls. According to National Retail Federation survey, there are 11%
of individuals choose to reward themselves with a reward, including jewelry, which sets a new
trend on Valentine day that pertinent with PNJ Silver’s necklace target segment. PNJ Silver has
become a fashion icon among young people with the significant youthful, dreamy pink color and
sparkling silver logo (Brands Vietnam 2013). Even though, it recently transformed to the purple
to aim more mature girls, the impressive recognition of the brand is undoubtable.

 Place
For PNJ Silver’s necklace, the company currently applying multichannel distribution strategy
through both direct and indirect distribution system. PNJ Silver’s significant strength in the
market is having 42 stores across the country and mainly located in big cities, where people
have above average income, and have higher demand on celebrating Valentine than other
provinces. One of the features of specialty good such as jewelry is that consumer have the
tendency of insisting on specific brands (Worldwide journal). Therefore, the greater the
coverage, the greater the brand's influence on consumers (Marketing AI), and the greater
capacity in supply to meet customer’s expectation and huge demand on Valentine day.
Moreover, the company has their own PNJ shopping online channel with optional receiving
methods such as free delivery policy or “click & collect” which customers can order online then
receive directly at the store. According to the statistics of the Department of E-Commerce and
Digital Economy of Viet Nam, the transactions via Internet, mobile phones increased to 238%
(Bao Viet securities 2020). PNJ cooperation with other online shopping channels such as
Shopee and Tiki helps to optimize efficiencies in sales during the pandemic.

 Price
PNJ Silver necklace’s pricing strategy is value-based pricing which all about enhances
customer’s satisfaction. Essentially, a Valentine's Day jewelry gift including necklace is a more
sophisticated financial transaction than could appear on the surface, customers desire to get the
best quality product for the cost-effective price (Megan Gorman 2019). Having a good reputation
in high quality and sophistication, PNJ Silver necklace’s price is considered as flexible in
comparation with other competitors as it has price ranges which allows customers to purchase
products based on their affordability and to expand the company's market presence. PNJ also
applying promotional pricing by offering weekly discount and special events discount.

 Promotion
The most popular advertising campaigns of PNJ are True love, Find your magic, and “Dep doi
ve mot nha” have gained millions of views on YouTube site, especially True Love and Find your
magic have approached the attention of the foreign consumer. The promotional events also
occurred on e-commerce platforms such as Facebook and Instagram where collections are
shown. There are 77% Facebook daily use of millennial consumer (from 18-34)( Walter Loeb
2020) which is also PNJ silver’s necklace target customer and 50% prefer checking out brands
on those social media sites (Mediakix). Recently, PNJ has successfully collaborated with Chau
Bui – a popular fashionista of Vietnam to launch a music video advertising their product.
According to Warc 2020, brands which use celebrities as campaign assets are nearly three
times more likely to perform significantly on branded awareness than advertising.

VI. MARKETING OBJECTIVES

There are three forms of marketing goals considered: conservative, steady growth in revenue;
and aggressive growth in sales (Graham J. Hooley, James E. Lynch, David Jobber 1992),
however due to pandemic and PNJ brand’s position, PNJ is suggested to set a defensive plan.
As reported in February of 2020, Retail channel revenue increased by 15% compared to
December 2019, despite of the pandemic. This year, the situation of Covid-19 in Vietnam has
been recovering and jewelry industry will suffer a rebound as mentioned in the Swot analysis,
PNJ is expected to increase 20% sales in Valentine 2021 by social engagement and launching
a new product.

VII. RECOMMENDATION
Since PNJ Silver necklace’s significant operational strategies of distribution and pricing have
been successfully applied and being adaptive with unprecedented trend of the massive increase
in digital channel usage, promotional campaign and the innovative strategies on the product will
be the key focus of adjustments in order to remain competitive and maximize efficiencies of the
operation on Valentine of 2021. The customer that PNJ’s Silver necklace targeting also called
as millennial generation. This segment could be depicted as open-minded (adaptable with
changes), self-expressive, and passionate with quality (Lydia Abbot 2019), they also markedly
affected by internet influencers such as celebrities and people they follow on social media. For
the product, my recommendation is collaborating with a mobile app that allows customer to
design their own necklace such as Jweel. Because Jweel recently only offers customized
service for ring, PNJ can cooperate with them to launch a new collection for the Valentine day
which made by customer themselves. While designing silver necklace is simpler than ring,
target customer is able to create themselves without design specification. Moreover, this idea
can help the company to either increase the price depending on its value that customer added
on their design or boost customer’s satisfaction by providing a clear price on materials used to
design so that customer can manage on their financial budget, and somehow solves inventory
problems on Valentine. This plan has the potential to approach numerous customers due to the
great influence of social networks. For the promotional campaign, on the Valentine day I
suggest using celebrity couple for advertisement such as Chau Bui and Binz since Chau Bui
already become PNJ’s brand ambassador. According to Amelia Neate 2020, couple-content
gets extra dedication for the brand in terms of total reach (double influence), their followers and
the addition exposure while they support each other by reposting or promoting their partner
advertising contents. Therefore, this is a effective way to maximize the profit of promotion while
using the budget wisely.

VIII. REFERENCES
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IX. APPENDICES