Dharshan
Dharshan
Dharshan
Internship Report on
BY
Mr. DHARSHAN K
REG: U19GZ21C0009
UNDER THE GUIDANCE OF
ASHOK A.S
Associate Professor of Commerce
GOVERNMENT FIRST GRADE COLLEGE, K.R, PURAM
GOVERNMENT FIRST
GRADE COLLEGE
COLLEGE CERTIFICATE
(IN THE COLLEGE LETTER HEAD)
DATE:
CERTIFICATE
This is to certify that Mr. DHARSHAN K a bearing Registered
No.U19GZ21C0009 UUCMS ID. is a student of VI SEM B COM of our
College.
Principal
STUDENT DECLARATION
I the Mr. DHARSHAN K, Reg. No. U19GZ21C0009 UUCMS ID, hereby
declare that this report entitled “A PROJECT REPORT ON OPENING UP
OF A JEWELLERY” at SRI SAPTHAGIRI JEWELLERY.
during the summer vacation between the period from
01/04/2024 to 15/04/2024 SRI SAPTHAGIRI JEWELLERY”
under the supervision and guidance of ASHOK A S, Associate
professor of Commerce, GOVT FIRST GRADE COLLEGE.
Date :
Place: Signature
ACKNOWLEDGEMENT
The successful completion of this internship report required significant
guidance and assistance from many individuals, and I am truly grateful
for their support throughout this journey.
1. Executive Summary
2. Introduction
3. Description of the Organization
4. Experiential Learning
5. Internship Outcomes and
Conclusion
6. Bibliography
7. Annexures
EXECUTIVE SUMMARY
To grow and prosper in each and every business change should be the only
constant.
The unorganized sector leaves a huge opportunity for the branded jewelers to
explore and gain their monopoly from the start Like every other industry
even the jewellery businesses and industry demands change. There has been a
tremendous change from the traditional jewellery designs to new fashion led
mixed jewellery over the past years
People also build trust on branded jewellery these days. They find the need
to be exclusive and different especially the rich and elite class
Less of gold and more of mixed is in demand these days which also helps in
generating better profit margins to the jewelers makes it completely feasible
to open their jewellery businesses
Based on the above factors that support the jewellery business we plan to
open the jewellery showroom for the classes in a area that demands for it
Hence after the finding a scope to extend further business into jewellery we
also come up with the financial feasibility to support this project.
CHAPTER-I
Introduction
A thorough and detailed research of the complete gold and diamond industry
for checking its feasibility and making “sri sapthagiri jewellary” operational in
the retail segment of the market
INDUSTRY ANALYSIS
CURRENT SCENARIO
The jewellery industry seems very confident for a glittering future.
Annual sales 3 crore are expected to grow comfortably at 5-6% every
year reaching almost upto 5 crore by the year 2023
The taste and preference of people all over the world have evolved and
if the jewellery businesses have to survive the fierce competition they
need to be very innovative .
Another interesting trend in the jewellery industry is the growth of
branded jewellery,though it accounts for a very small percentage.
The following chart shows the growth trends and the upcoming future
of branded jewellery
The graph shows that estimated growth by the year 2024 the branded
jewellery will capture a market of 30-40% of the jewellery industry.
Industry expert when interviewed had an optimistic view of it and they
think that branded jewellery will cover more market than unbranded
There are three types of consumers driving the growth of branded jewelry:
“new money” consumers who wear branded jewelry to show off their
newly acquired wealth (in contrast to “old money” consumers, who
prefer heirlooms or estate jewelry)
emerging-market consumers, for whom established brands inspire trust
and the sense of an upgraded lifestyle—a purchasing factor quoted by
80 percent of our interviewees
young consumers who turn to brands as a means of self-expression and
self-realization People have now started trusting the new brands on
account of their trust associated with the parent company so it is very
important to make them feel the safety they desire to while purchasing
jewellery
The next thing for the jewellery industry that makes them work is their
channel of operation.
Different channels have faced various phases of growth, downfall and
stagnation
The arrow diagram below shows the future trend that possibly can take
place
JEWELLERY TRENDS
Mono-brand stores have killed the market and are still growing in the
upward trend. this is because people are having faith in the brand name
For example Swarovski had only 2 stores in the year 1990 but by now
there are approximately 1000 stores all over the globe.
Multi brand stores and departmental stores are on a stagnation mode
and might even decline in the nearing time People often visit to see
some brand but end up buying some other which they might later
realize its not meeting up with their expectations.
Online jewellery store at present make only a sale of 4-5% of the entire
jewellery sales but are expected to grow till only 10% by the year 2020
further which even they might become stagnant
The only probable reason why people chose brick and mortar stores
over others is due to the sensory satisfaction they get while purchasing
jewellery worth lacs and also drive away with their fear of being
cheated
MARKET ANALYSIS
The family oriented businesses in jewellery are unorganized and still rule the
market but even they feel the need to change with the current trends Mixed
jewellery that is jewellery made of gold and diamond offer more profitability
than only gold jewellery as diamonds have the capacity to generate almost
100% profits They latest trend that carries on in the market is designer led
fashion jewellery. There also has been a shift from investment related
mentality to fashion fads.
CHAPTER II
After having gone through a list of names that made sense to the world of gold
and diamond jewellery, sri sapthagiri jewellary - by edelweiss having the
tagline “pride of the shine” was strategically chosen as a perfect match
while giving a brand name to the business a lot of factors are taken to
consideration for making it well-versed with the prospect customers as well
as everyone, such as
After thinking about these factors at every step before naming the b-plan, sri
sapthagiri was selected
OBJECTIVE
MISSION
VISION
Changing from a single shop retailer to multi-chain shops all across India
START UP SUMMARY
LEGAL PROCEDURES
Edelweiss being a huge brand name in the market needs to take care of each
and every minute detail that don’t interrupt the smooth functioning of its
various businesses
a) Every jewellery retailer has to obtain license from the bureau of indian
standards (bis) for selling hallmarked jewellery
b) The license will contain the name and address of the jeweler
c) A licence will be granted for sale of Hallmarked gold jewellery/artefact
conforming to IS 1417 from an outlet.
d) Similarly, another licence will be granted for sale of Hallmarked silver
jewellery/artefact conforming to IS 2112 from the same outlet.
e) The validity of a licence shall be of three years.
JURISDICTION
i. The Head Office of the jeweller organization shall apply to the nearest
Branch Office (BO) of BIS for grant of Corporate Licence along with a
list of retail outlets to be covered in the licence with supporting
documents. The BO shall grant licence if all outlets are falling under its
jurisdiction.
ii. If these outlets are falling beyond the jurisdiction of the BO as at (i)
above, may be covering several BOs, the application shall be forwarded
by the BO to DDGR in the Region for grant of licence. This shall be
irrespective of the locations of the sales outlets. The licence will be
maintained by the BO as at (i) above. BOs having jurisdiction over such
licensed retail outlets shall be informed about grant of the Corporate
Licence in order to facilitate market surveillances.
iii. Inclusion of additional outlets will be done in the same manner as
above.
iv. Every retail outlet, which has been covered under a Corporate Licence,
shall be issued an independent licence document mentioning the
address.
a) The application cum processing fee for grant of fresh licence or its
renewal shall be Rs. 2 000 per outlet.
The fees for grant of a license or its renewal for a period of three years
shall be as given in Tables 1 and 2 below in case of a Single License and
for a Corporate License. A single licensee shall also have the option to
pay the fees on an annual basis as per the rates indicated in the Table 1
below
STORE DESIGN
we want to position our selves as a high level brand for the classes and not the
masses for this we need to offer our customers with the latest trending
jewellery designs and one of its kind the place of operation is also selected
based on our positioning also our complete marketing strategy will be based
on serving ourselves as high level brand
LOCATION
The location chosen for offering the best to the upper middle and upper
class people is the so called M G Road, srinivasapura.
The reasons for chosing this particular location is after taking into
consideration the field visit and market research made by our
team
1) Type of market
2) Footfall in that location
1) START UP COSTS
To start our business the following cost heads are taken that are funded by the
debt of rs6500000 we have raised for the first year
CHAPTER III
Experiential Learning
MARKET SEGMENTATION
For purchasing gold and diamond jewellery the market has been
segmented on various attributes that help us chose our target
customers and market
Segmentation on basis of income
a) Upper segment of the society
b) Upper middle level segment of the society
c) Lower middle level segment of the society
Segmentation on basis of people preferring
a) Branded jewellery
b) Unbranded jewellery
Segmentation of products
a) Gold
b) Diamond
c) Mix(gold+diamond)
Segmentation of location on basis of taste and preference
a) Traditional style of jewellery
b) New designer jewellery
c) Exclusive jewellery
BUYING PATTERNS
Gold bullion as an investment
Jewellery for day to day use
Wedding jewellery
Jewellery as gift
Exclusive showcases
The target market selected on basis of income are the upper segment
and the upper middle level segment of the society
The reason for targeting them is to maintain our name in the
high end jewellery segment and offer exclusive jewellery
On basis of peoples preference we offer our own branded jewellery as
people have started building trust in branded jewellery as mentioned
above
We target to sell all the segments of the product ie offering all the three
Gold
Diamonds
Mixed products
On basis of taste and preferences of people and to make our name in the
elite jewelers we give new designer jewellery and exclusive designs only
affordable for the upper middle class and the super rich
The customers in todays world have a varied view about how to buy gold
for different purposes
The buying pattern reflected included
a) Gold purchased as an investment
b) Casual jewellery people use for daily purposes
c) In india wedding is a season where people like to celebrate
with jewellery.
So we target bridal wear jewellery as well
d) It is every womens dream come true to be gifted diamonds and
expensive jewellery
e) All the elite families like to be unique by showcasing that one rare
thing which no one has
COMPETITIVE EDGE
Competitive edge will be achieved in sri sapthagiri jewellary through
different mediums such as
a) Store operations and human resources
c) Marketing plan
The marketing plan is developed in such a way that people are
aware of our brand through all the mediums without leaving any
scope
NEWSPAPER ADVERTISING
Through full front page adverting in leading newspapers such as
Times of india
Samyuktha Karnataka
Vijaya karnataka
It is one of the major source of advertising as no ones morning gets completed
without newspapers. Majority of the population can be made aware of our
brand through it
Reach
(daily) Cost
Times of (at Rs 5000 per square cm for
India 810365 8580000 33*52)
Samyuktha
kar 601000 3432000 (at Rs 2000 per square cm)
Vijaya kar 715208 1350000 (at Rs 1800 per square cm)
13,362,00
Total 0
The month of October that’s brings indias one of the most auspicious festival
of Diwali is a target time where more advertisements need to be done as most
of the people in india buy jewellery in Diwali considering it to be a good time
for buying gold
The wedding seasons in January and april is again a prime time to showcase
our new collection which also needs to be told to the people residing in india
through the newspapers
RADIO STATIONS
3 93.5 red fm
10 secs , 10 spots, 30 Negotiabl
days 700000 e
Cost of radio
6,000,000 advertising
The most commonly used form of advertising these days. From small to big
everyone now a days use online. Online media marketing is very trending
effective as well as helps to bring in a lot of people to our brand Even if online
Total 780,000
PRODUCTS
The gold jewellery stock is maintained keeping in mind their weights and
karats.
Approximately 54 kgs of gold be kept in the store for being sold and
replenishment will be done according to the demand and new patterns
available in the market over the year
The pricing strategy adopted is day to day pricing but for an estimation a
margin of 15% is charged for preparing our financials
The following table shows the product count according to their weights
Jewellery 1-5 5-10 10- 15- 20- 30- 40- 50- 75 TOTAL
15 20 30 40 50 75 AND
ABOVE
EARINGS 100 100 80 60 50 20 10 420
RINGS 80 80 60 60 30 20 10 340
CHAINS 50 50 50 50 40 30 20 20 20 330
NECKLACES 40 40 50 50 50 40 30 20 320
MANGALSUTRAS 25 25 25 25 10 10 120
PENDANTS 200 100 100 20 20 440
BRACELETS 50 50 40 40 30 20 10 240
BANGLES 30 40 40 40 40 30 30 250
MANGTIKKAS 15 15 30
NOSEPINS 25 25 50
GOLD COINS 20 20 40
PENDANT SETS 30 50 20 20 30 20 170
DESIGNER SETS 30 25 25 20 10 110
TOTAL 490 565 495 395 340 255 180 100 40 2860
a) 24kt- rs26482/10gms
b) 22kt- rs24275.17/10gms
According to these prices the overall costing of our gold stock totals to
rs128735400 approximately and selling the stock worth the above
value at approximately 131,729,191.92 will help us give a profit of
approximately 15%.
CHAPTER IV
MANAGEMENT SUMMARY
The management team for running the jewellery business will have wide
expertise and broad knowledge of the jewellery market, the current practices
in the industry and the intricacies of the segment. If these activities are
planned well, it will help the business realize its goals in a potent and efficient
manner. As the business grows, there will be need of additional consultants
and market experts who will be able to guide the store on the right path.
The primary task of the management team will be to stay in terms with the on
going market practices, the shifting trends in the markets, the shift in
consumer ideology and to analyze the competitor behaviour. They will have to
make sure that the store does not go awry from its pre-decided goals and that
it keeps registering continuous growth.
The team will also function as an intermediary between the store and its
public. Hence, it will fall to the efficiency of the management team that the
customers are satisfied with the products and services offered, the creditors
are confident of the business being well off, the employees are happy with the
working conditions and the store doesn’t indulge in any malpractices.
STORE HIERARCHY
Sapthagiri jewellary will follow a vertical organisational pattern and at
the helm will be the store manager who will be in charge of the daily
operations of the store. Moreover, the store manager will make sure
that the employees under him are working efficiently and that if any
dispute or conflict arises, he will make sure that a solution is reached in
the best interest of the business. The store manager will be assisted by 2
floor managers who will be overlook the functions of the two floors of
the store One floor manager will be at the helm of the GOLD section and
the other one of the DIAMOND section.
Store Manager
Sales Personnel are the patrons of the store, they are the first point of contact
for the customers and are the ones whose interaction with the customers can
either give the store a loyal customer force or pull the sales down. Hence, it is
vital that the sales personnel along with the managers and other staff are
always on their best behaviour and make sure that the customers always
leave satisfied. The expenses incurred on training and development will help
the employees sharpen their skills which would mean that the whole work
force is reliable and the store won’t have to be over dependent on only a few
employees.
A properly trained employee becomes more informed about procedures for
various tasks. The worker confidence is also boosted by training and
development. This confidence comes from the fact that the employee is fully
aware of his/her roles and responsibilities. It helps the worker carry out the
duties in better way and even find new ideas to incorporate in the daily
execution of duty.
Training and development makes the employee also feel satisfied with the
role they play in the company or organization. This is driven by the great
ability they gain to execute their duties. They feel they belong to the company
or the organization that they work for and the only way to reward it is giving
the best services they can.
Employees gain standard methods to use in their tasks. They are also able to
maintain uniformity in the output they give. This results with a company that
gives satisfying services or goods.
Hence, the expenses incurred in training and development of the sales force
can only yield returns for the store in the short and long run. It will
particularly enhance the customer experience and propel the name of the
brand forward. It is necessary that the employees stay in tune with all the
current market practices and the amount of training and development will be
ushered in from the Reserves that the store has and after a few years, from the
Revenue the store makes.
REMUNERATION
The detailed annual personnel plan is included in the appendix. The annual
personnel estimates are included here. We believe this plan is an acceptable
compromise between fairness and expedience, and meets the commitments of
our mission statement. We intend to be an easily recognized and trusted
brand and we know that the workforce has to be remunerated fairly for them
to enhance the experience of our customers. We want the company to stay
lean and flexible so that we can respond to a client's needs quickly. However
as we expand and increase in size (increase in the number of footfall and
sales) we expect to increase our personnel.
SALES
Jewellery is viewed with a lot of fervour in India and hence the sale of gold
and diamond jewellery is not just related to a pure business transaction. The
project required indentifying potential areas in sapthagiri where the sale of
jewellery has a strong prospect with customers accepting a new brand as well
as getting acclimatised to how jewellery is sold in the city and what are the
different target markets. To get an estimation of the sales figure at our
selected location that is M G road, we undertook a study of sales figure of
influential stand alone stores in the area. With the sales figures based on that ,
we derived our sales amount of first year. In lieu of the sales made by the
above mentioned influential jewellers, we determined our sales to roughly
around 25% of that made by these jewellers.
The margin on diamond jewellery is kept at 35% for the first five years and it
will increase to 40% from the 6th year of operations.
Rs. 200
Rs. 180
Rs. 160
Rs. 140
Rs. 120
Sales
Rs. 100
Gold sales
Rs. 80 Diamond Sales
Rs. 60
Rs. 40
Rs. 20
Rs. 0
1 2 3 4 5 6 7 8 9 10 11
CONCLUSION
Bibliography
www.Google.com
www.Justdail.com
The result of the survey clearly indicated that majority of the
participants believe that oral jewellery can certainly pose various oral
health issues. Nevertheless it is difficult to get the consent from parents
of under-aged patients. A decent proposal to deal with this issue could
be a written consent form signed by the parents before their ward
undergo such treatment. Different variants of intra-oral jewellery
include twinkles, grills, veneer jewels, rings, loops, studs, dazzlers etc.
Annexures