Best Marketing Practices

8/8/2019 Best Marketing Practices

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North AmericanFine Jewelry RetailingResearch Series:

MarketingBest Practices

A National JewelerWhite Paper

Sponsored by


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TABLE OF CONTENTS

QUESTIONS AND ANSWERS:A closer look at the surveys 20 main questions

p.4 1. What is your total marketing spend aspercentage of revenue?

p.5 2. What is the change in your marketing spend asa 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 youhost per year?

p.8 5. Which of the following types of events doyou hold?

p.9 6. What percentage of your marketing budget ispaid for out of suppliers co-op funding?

p.10 7. What types of market research do youengage in?

p.11 8. What is the primary goal of your marketresearch?

p.12 9. Do you collect customer data/information?

p.13 10. If you collect customer data, in which of thefollowing ways do you use it?

p.14 11. Which of the following methods do you useto contact customers?

p.15 12. Do you buy mailing lists to solicit newcustomers?

p.16 13. Within what period of time do you expect tosee a return on a specific marketing investment?

p.17 14. What is the most important objective of yourmarketing?

p.18 15. What is your biggest marketing executionchallenge?

p.19 16. Who manages your marketing budget?

p.20 17. Who is responsible for developing yourmarketing creative?

p.21 18. Do you work with an outside consultant/agency for any of the following?

p.22 SPONSOR QUESTION: 19. How would you ratein-store financing programs as a marketing/sales tool?

p.23 SPONSOR QUESTION: 20.Are special, limited-timefinancing offers effective for increasing sales?

APPENDIX:The top four responses to four open-ended questions

p.24 A. What is the share of your marketing budget byeach of the following media?

B. What is your marketing spend by quarter as apercent of the total?

C. How do you measure/validate your marketingprograms return on investment?

D.What is driving change, if any, in your approachto marketing?

By Melissa Shepherd

NATIONAL JEWELERS exclusive market-ing practices survey posed a series ofquestions to jewelers about how theyrun their marketing programs in order

to help elucidate the business chal-lenges, goals and best practices of theindustry at large.

On each page of the survey results,youll find one of 20 questions. Eachquestion has been cross-tabulated bykey demographics and briefly summa-rized to provide further insight into theresults. But first, here are some of thesurveys main findings, culled from theresponses of the204 participating

jewelers: Most jewelers(89 percent) spendless than 10 percentof their yearly rev-enue on marketing.In general, as coremarket size and per-store revenue go up,so does marketingspend. Year-over-year,

jewelers are cau-

tiously re-evaluatingtheir marketing budgets. More than one-third plan to spend no more this year thanthey did last year, and 21 percent plan tospend even less. Devising a master plan is the

biggest marketing execution challengefor jewelers (28 percent), followedclosely by developing the creative(26 percent) and choosing media andplacement for their marketing materials(26 percent).

Building brand recognition is themost important marketing goal for jewelers (44 percent), followed by drivingtraffic to their stores (29 percent)

Reflecting these two main goals, virtually equal numbers of jewelers expecimmediate results (34 percent) andlong-term results (35 percent) fromtheir marketing efforts. Jewelers with higher revenues an

wider core markets spend more on advertising and hold more in-store events. Prinadvertising, especially in newspapersremains an important marketing resource

(61 percent of jewelers run these ads)and single-vendor trunk shows are moscommon (37 percent of jewelers hold thitype of in-store event). Better product development is the

main reason jewelers say they conducmarket research (42 percent), and mosjewelers prefer doing so by talkinginformally with customers (59 percent), rather than sending surveys orusing focus groups.

Jewelers share their marketingchallenges, goals and best practices

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ABOUT THIS SURVEY:

NATIONALJEWELER conducted this survey via e-mail in October 2006 in

conjunction with Zoomerang.com, an online market research service owned

and operated by MarketTools Inc. of Mill Valley, Calif. Responding to the

survey were 204 readers.Roughly 82 percent of the survey respondents were independent retail

jewelers; 2 percent represented jewelry chains; 1 percent represented

department stores; and the remaining 15 percent included designers, online

retailers, pawn shops, repair shops and similar businesses.

Grouped geographically, responses fell into four U.S. regions:

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

Geographically, responses also fell into three locationsurban, suburban or

ruraland into five core market sizesless than one mile, one to three miles,

three to five miles, five to 10 miles, and greater than 10 miles in diameter.

Other respondents reported selling strictly online.

The survey also grouped respondents by annual per-store sales: less than$250,000; $250,000-$499,999; $500,000-$749,999; $750,000-

$999,999; $1 million to $1,499,999; and $1.5 million or more.

Finally, NATIONALJEWELER cross-tabulated the survey questions by region, by

location, by size of core market and by annual per-store sales to achieve

more in-depth results on marketing practices.

Region

Northeast:

South:

Midwest:

West:

25 percent

32 percent

22 percent

21 percent

Size of core market

Less than 1 mile:

1-3 miles:

3-5 miles:

5-10 miles:

Greater than 10 miles:

I sell strictly online:

2 percent

6 percent

13 percent

23 percent

53 percent

3 percent

Location

Annual per-store sales

Less than $250,00:

$250,000-$499,999:

$500,000-$749,999:

$750,000-$999,999:

$1,000,000 to

$1,499,999:

$1,500,000 or more:

25 percent

19 percent

17 percent

9 percent

10 percent

20 percent

Type

Independent retailers:

Jewelry Chains:

Department Stores:

Other:

82 percent

2 percent

1 percent

15 percent

Urban:

Suburban:

Rural:

37 percent

50 percent

13 percent

Core market diameter

OVER VI EW 3


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1What is your total marketing spend aspercentage of revenue?

By location

Location Less than 1% 1-3% 3-5% 5-7% 7-10% 10-15% Other

Urban 6.7% 21.3% 26.7% 26.7% 8% 8% 2.7%

Suburban 9.8% 12.7% 20.6% 25.5% 17.6% 10.8% 2.9%

Rural 11.1% 25.9% 14.8% 33.3% 11.1% 3.7% 0%

By U.S. region

Region Less than 1% 1-3% 3-5% 5-7% 7-10% 10-15% Other

Northeast 11.8% 23.5% 9.8% 31.4% 9.8% 11.8% 2%

South 4.5% 16.7% 24.2% 31.8% 16.7% 3% 3%

Midwest 11.4% 15.9% 27.3% 20.5% 13.6% 9.1% 2.3%

West 9.3% 14% 27.9% 20.9% 11.6% 14% 2.3%

Less than 1%:

1-3%:

3-5%:

5-7%:

7-10%:

10-15%:

Other:

By size of core market

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%

By annual per-store sales

Sales Less than 1% 1-3% 3-5% 5-7% 7-10% 10-15% Other

Less than $250,000 18% 22% 18% 16% 14% 6% 6%

$250,000-$499,999 5.3% 18.4% 23.7% 34.2% 7.9% 10.5% 0%

$500,000-$749,999 11.4% 17.1% 31.4% 17.1% 14.3% 8.6% 0%

$750,000-$999,999 5.3% 10.5% 15.8% 42.1% 10.5% 10.5% 5.3%

$1,000,000-$1,499,999 0% 19% 19% 38.1% 9.5% 14.3% 0%

$1,500,000 or more 4.9% 14.6% 22% 29.3% 19.5% 7.3% 2.4%

9 percent

18 percent

22 percent

27 percent

13 percent

9 percent

2 percent

N A T I O N A L J E W E L E R E X C L U S I V E S U R V E Y : M A R K E T I N G P R A C T I C E S

THE VAST majority of jewel-

ers surveyed report spending

less than 10 percent of their

annual revenue on marketing,with a near majority (49

percent) spending between

3 percent and 7 percent.

Core market size and per-

store revenue are generally

proportionate to marketing

spend. Seventy-five percent

of jewelers whose markets

cover less than a mile in

diameter report a marketing

spend of less than 1 percent

of revenue.Meanwhile,

jewelers with larger core

markets are most likely to

spend 3 percent to 10

percent. Likewise, jewelers

with higher per-store

revenue tend to spend more

on marketing, with those

seeing $750,000-plus in sales

putting 5 percent to 7

percent of their revenue

into marketing.

89%of jewelers spend 10 percent orless of their revenue on marketing.

*Totals may not add up to 100 percent due to rounding.

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MORE THAN one-third of

survey respondents say they

will spend no more on their

marketing programs this yearthan they did last year, and

most of those who are

adjusting their spend will do

so cautiously (27 percent plan

to spend slightly more and

21 percent plan to spend

slightly less).

The trend of cautious

spending adjustments appears

across all regions and loca-

tions,with jewelers in the

Northeast and in urban areas

most inclined to stick to last

years budget.

Among those who do plan

to spend significantly more

on marketing this year, about

11 percent are in rural areas

and about 27 percent have

per-store sales of $1 million

or more.

34%of jewelers plan to spend thesame amount on marketing thisyear as they did the previous year.

2 What is the change in your marketing spend as apercentage of revenue compared to last year?

By location

Location Same spend Slightly less Significantly Slightly Significantly Other 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%

By U.S. region

Region Same spend Slightly less Significantly Slightly Significantly Other as last year than last year less than more than more than


Northeast 43.1% 11.8% 15.7% 17.6% 9.8% 2%

South 31.8% 15.2% 6.1% 33.3% 12.1% 1.5%

Midwest 29.5% 36.4% 4.5% 25% 2.3% 2.3%

West 32.6% 23.3% 2.3% 30.2% 9.3% 2.3%

Same spend as last year:

Slightly less than last year:

Significantly less than last year:

Slightly more than last year:

Significantly more than last year:

Other:


Core market size Same spend Slightly less Significantly Slightly Significantly Other as last year than last year less than more than more than


Less than a mile

in diameter 75% 25% 0% 0% 0% 0%

1-3 miles in diameter 58.3% 8.3% 0% 25% 8.3% 0%

3-5 miles in diameter 29.6% 18.5% 11.1% 25.9% 7.4% 7.4%

5-10 miles in diameter 32.6% 17.4% 4.3% 30.4% 13% 2.2%

Greater than 10

miles in diameter 33.9% 23.9% 9.2% 23.9% 8.3% 0.9%

I sell strictly online 0% 16.7% 0% 83.3% 0% 0%


Sales Same spend Slightly less Significantly Slightly Significantly Other as last year than last year less than more than more than


Less than $250,000 38% 20% 8% 18% 10% 6%

$250,000-$499,999 34.2% 23.7% 5.3% 31.6% 5.3% 0%

$500,000-$749,999 34.3% 22.9% 2.9% 34.3% 5.7% 0%$750,000-$999,999 42.1% 10.5% 21.1% 15.8% 5.3% 5.3%

$1,000,000-$1,499,999 33.3% 14.3% 4.8% 33.3% 14.3% 0%

$1,500,000 or more 26.8% 24.4% 7.3% 29.3% 12.2% 0%

34 percent

21 percent

7 percent

27 percent

9 percent

2 percent


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NEWSPAPER DISPLAY is the

print advertising of choice

for 61 percent of jewelers

surveyed. Magazine ads areanother important marketing

avenue, with local lifestyle

magazines leading the way.

Rural jewelers are more

likely to run ads in a newspa-

per (81.5%) by some 20

percentage points than their

urban and suburban counter-

parts, while bridal magazine

ads are significantly more

frequent among urban and

suburban jewelers.

Smaller core markets rely

most heavily on newspaper

ads, while the largest markets

spread their print dollars most

evenly between newspapers

and magazines.Those with the

highest revenue, $1.5 million

or more per store, invest

more in print advertising,

across the board.

61%of jewelers use newspaperdisplay advertising.

3What kind of print advertising do you run?(Check all that apply.)

By location

Location Newspaper Newspaper Local lifestyle Regional National Bridal Otherdisplay insert magazine magazine magazine magazine

advertising advertising advertising advertising advertising advertising

Urban 52% 24% 28% 21.3% 12% 13.3% 36%

Suburban 61.8% 26.5% 40.2% 23.5% 4.9% 16.7% 23.5%

Rural 81.5% 48.1% 37% 18.5% 11.1% 3.7% 14.8%

By U.S. region

Region Newspaper Newspaper Local lifestyle Regional National Bridal Other display insert magazine magazine magazine magazine

adverti si ng advertising adver tising adver tising advertising adver ti si ng

Northeast 60.8% 29.4% 43.1% 25.5% 11.8% 19.6% 21.6%

South 63.6% 21.2% 37.9% 22.7% 7.6% 10.6% 25.8%

Midwest 56.8% 43.2% 27.3% 18.2% 4.5% 9.1% 31.8%

West 60.5% 23.3% 30.2% 20.9% 9.3% 16.3% 30.2%

Newspaper display advertising:

Newspaper insert advertising:

Local lifestyle magazine advertising:

Regional magazine advertising:

National magazine advertising:

Bridal magazine advertising:

Other:


Core market size Newspaper Newspaper Local lifestyle Regional National Bridal Otherdisplay insert magazine magazine magazine magazine

adver tising advert is ing adver tising adver tising advert is ing adver tising

Less than a mile

in diameter 50% 0% 25% 50% 0% 0% 25%

1-3 miles in diameter 58.3% 25% 25% 25% 0% 0% 16.7%

3-5 miles in diameter 77.8% 33.3% 37% 3.7% 0% 14.8% 22.2%

5-10 miles in diameter 78.3% 41.3% 41.3% 17.4% 2.2% 10.9% 15.2%

Greater than 10 miles

in diameter 53.2% 23.9% 35.8% 28.4% 13.8% 17.4% 32.1%

I sell strictly online 0% 16.7% 0% 0% 16.7% 0% 66.7%


Sales Newspaper Newspaper Local l ifesty le Regional Nati onal Bridal Other display insert magazine magazine magazine magazine

adver tising adver tising adver tising advert is ing adver tising adver tising

Less than $250,000 46% 20% 32% 20% 10% 4% 40%

$250,000-$499,999 81.6% 31.6% 34.2% 10.5% 2.6% 2.6% 18.4%

$500,000-$749,999 60% 34.3% 34.3% 20% 5.7% 2.9% 22.9%$750,000-$999,999 52.6% 26.3% 52.6% 36.8% 0% 21.1% 21.1%

$1,000,000-$1,499,999 47.6% 33.3% 23.8% 23.8% 4.8% 9.5% 33.3%

$1,500,000 or more 70.7% 29.3% 39% 29.3% 19.5% 43.9% 22%

61 percent

28 percent

35 percent

22 percent

8 percent

14 percent

27 percent

*Totals add up to more than 100 percent since multiple responses were permitted.

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HOSTING IN-STORE events

is a common marketing best

practice among survey

respondents, with more thantwo-thirds reporting they

hold at least one each year

and 41 percent reporting

they hold 2 to 5 such events.

Per-store sales are a

primary factor in how many

events jewelers host through-

out the year; 46 percent of

jewelers with less than

$250,000 in annual sales dont

host any in-store events,while

more than 12 percent of

jewelers in the $1.5 million-

plus range average more than

10 in-store events. Similarly,

those with a wider core

market are more likely to

host multiple events during

the course of a year.

67%of jewelers hold at least onein-store event each year.

4 How many in-store marketing events do youhost per year?

By location

Location None 1 2-5 5-10 More than 10

Urban 37.3% 17.3% 32% 5.3% 8%

Suburban 28.4% 17.6% 46.1% 5.9% 2%

Rural 40.7% 14.8% 44.4% 0% 0%

By U.S. region

Region None 1 2-5 5-10 More than 10

Northeast 37.3% 15.7% 39.2% 3.9% 3.9%

South 36.4% 16.7% 40.9% 3% 3%

Midwest 29.5% 13.6% 47.7% 6.8% 2.3%

West 27.9% 23.3% 34.9% 7% 7%

None:

1:

2-5:

5-10:

More than 10:


Core market size None 1 2-5 5-10 More than 10Less than a mile in diameter 25% 25% 25% 25% 0%

1-3 miles in diameter 41.7% 25% 25% 8.3% 0%

3-5 miles in diameter 37% 18.5% 44.4% 0% 0%

5-10 miles in diameter 28.3% 15.2% 52.2% 4.3% 0%

Greater than 10 miles in diameter 32.1% 17.4% 38.5% 4.6% 7.3%

I sell strictly online 66.7% 0% 16.7% 16.7% 0%


Sales None 1 2-5 5-10 More than 10

Less than $250,000 46% 12% 32% 4% 6%

$250,000-$499,999 31.6% 15.8% 52.6% 0% 0%

$500,000-$749,999 40% 20% 31.4% 8.6% 0%

$750,000-$999,999 21.1% 31.6% 42.1% 5.3% 0%

$1,000,000-$1,499,999 28.6% 28.6% 42.9% 0% 0%

$1,500,000 or more 22% 9.8% 46.3% 9.8% 12.2%

33 percent

17 percent

41 percent

5 percent

4 percent


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SINGLE-VENDOR trunk

shows are the most popular

type of event among jewelers

surveyed (37 percent),andthe majority (51 percent) also

favor special after-hour events

as a way to draw in customers.

Jewelers in the South most

often hold trunk shows and

cross-promotional events

(nearly 44 percent and 23

percent, respectively), while

Western jewelers put more

emphasis on multiple-vendor

events (more than 30 percent).

After-hours events,as well

as other event types not listed,

are important to marketing

plans across the categories,

perhaps signaling jewelers

overall desire to reward best

customers and differentiate

their events from the pack.

37%of jewelers hold single-vendor trunk shows.

5 Which of the following types of events do you hold?(Check all that apply.)Single-vendor trunk shows:

Product-themed shows with productfrom multiple vendors:

Cross-promotional events partneringwith other retail marketers:

Special after-hours price-off events:

Special after-hours themed events:

Other:

37 percent

21 percent

17 percent

22 percent

29 percent

36 percent


By U.S. region

Region S ingle-vendor P roduct -themed Cross -promotional Special a fter -hours Special a fter -hours Other trunk shows shows with product events partnering price-off events themed events

from multiple vendors with other retailmarketers

Northeast 33.3% 25.5% 15.7% 21.6% 23.5% 31.4%South 43.9% 13.6% 16.7% 22.7% 25.8% 33.3%

Midwest 34.1% 18.2% 22.7% 25% 38.6% 38.6%

West 34.9% 30.2% 14% 18.6% 32.6% 44.2%

By location

Location S ingle- vendor Produc t- themed Cross -promotional Special a fter -hours Special a fter -hours Other trunk shows shows with product events partnering price-off events themed events


Urban 38.7% 17.3% 16% 24% 25.3% 38.7%

Suburban 38.2% 27.5% 17.6% 17.6% 31.4% 36.3%

Rural 29.6% 7.4% 18.5% 33.3% 33.3% 29.6%


Core market Single-vendor Product-themed Cross-promotional Special after-hours Special after-hours Others ize t runk shows shows w ith product events partner ing price-off events themed events


Less than amile in diameter 25.% 25.% 0% 0% 25% 25%

1-3 milesin diameter 16.7% 0% 0% 33.3% 25% 41.7%3-5 milesin diameter 37.% 22.2% 0% 25.9% 18.5% 40.7%5-10 milesin diameter 43.5% 21.7% 17.4% 19.6% 23.9% 32.6%Greater than10 milesin diameter 38.5% 22% 23.9% 22% 35.8% 34.9%I sell strictlyonline 16.7% 33.3% 16.7% 16.7% 16.7% 66.7%


Sales Single-vendor Produc t- themed Cross -promotional Special a fter -hours Special a fter -hours Other trunk shows shows with product events partnering price-off events themed events


Less than $250,000 24% 12% 18% 22% 30% 46%

$250,000-$499,999 39.5% 21.1% 21.1% 34.2% 26.3% 26.3%$500,000-$749,999 37.1% 20% 8.6% 20% 22.9% 40%

$750,000-$999,999 52.6% 21.1% 26.3% 10.5% 21.1% 26.3%

$1,000,000-$1,499,999 38.1% 19% 4.8% 23.8% 33.3% 33.3%

$1,500,000 or more 43.9% 34.1% 22% 17.1% 39% 36.6%

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MOST JEWELERS surveyed

go it alone when it comes to

marketing, with 55 percent

opting not to use supplierco-op funds.

Rural jewelers are least

likely to factor supplier dollars

into their marketing plans

(nearly 67 percent). Suburban

jewelers are most likely,

although 43 percent of

suburbanites draw less than

10 percent of their marketing

budget from suppliers.

Online jewelers over-

whelmingly choose not to

partner with suppliers on

marketing (83 percent), and

both online and traditional

jewelers, regardless of core

market size or annual

per-store sales, report that

supplier funds make up a

modest portion of their

marketing budgets.

55%of jewelers dont use supplierco-op funds to market their stores.

6 What percentage of your marketing budget is paid forout of suppliers co-op funding?

By location

Location None Less than 10% 10-25% 25-50% More than 50%

Urban 62.7% 18.7% 10.7% 6.7% 1.3%

Suburban 47.1% 43.1% 8.8% 1% 0%

Rural 66.7% 29.6% 3.7% 0% 0%

By U.S. region

Region None Less than 10% 10-25% 25-50% More than 50%

Northeast 60.8% 29.4% 5.9% 3.9% 0%

South 47% 36.4% 12.1% 3% 1.5%

Midwest 54.5% 34.1% 9.1% 2.3% 0%

West 62.8% 27.9% 7% 2.3% 0%

None:

Less than 10%

10-25%:

25-50%:

More than 50%:


Core market size None Less than 10% 10-25% 25-50% More than 50%

Less than a mile in diameter 50% 25% 0% 25% 0%

1-3 miles in diameter 75% 25% 0% 0% 0%


5-10 miles in diameter 45.7% 41.3% 13% 0% 0%

Greater than 10

miles in diameter 58.7% 26.6% 10.1% 3.7% 0.9%

I sell strictly online 83.3% 16.7% 0% 0% 0%


Sales None Less than 10% 10-25% 25-50% More than 50%

Less than $250,000 78% 18% 4% 0% 0%

$250,000-$499,999 47.4% 42.1% 10.5% 0% 0%

$500,000-$749,999 60% 37.1% 2.9% 0% 0%

$750,000-$999,999 52.6% 36.8% 10.5% 0% 0%

$1,000,000-$1,499,999 47.6% 38.1% 0% 14.3% 0%

$1,500,000 or more 36.6% 31.7% 22% 7.3% 2.4%


55 percent

32 percent

9 percent

3 percent

1 percent

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ALTHOUGH 30 percent of

survey respondents say they

dont engage in market

research, those who doprefer talking directly to

customers (59 percent) over

more formal approaches like

surveys and focus groups.

This is particularly true of

rural jewelers, nearly 90

percent of whom use informal

discussions with customers

for market research.

Jewelers with both small

and large core markets use

surveys more often than focus

groups, but both methods lag

well behind face-to-face talks

with customers as

marketing best practices.

59%of jewelers conduct market researchthrough informal discussions withcustomers.

7 What types of market research do you engage in?(Check all that apply.)

By U.S. region

Region Surveys (mail, Focus Informal discussions We dont do Other e-mail, phone) groups with customers market research

Northeast 31.4% 9.8% 58.8% 31.4% 3.9%

South 28.8% 12.1% 60.6% 31.8% 4.5%

Midwest 22.7% 6.8% 61.4% 31.8% 2.3%

West 27.9% 16.3% 53.5% 25.6% 16.3%

Surveys (mail, e-mail or phone):

Focus groups:

Informal discussions with customers:

We dont do market research:

Other:

By location

Location Surveys (mail, Focus Informal discussions We dont 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 dont 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%



in diameter 27.5% 14.7% 56.9% 32.1% 7.3%

I sell strictly online 50% 16.7% 16.7% 16.7% 0%

By annual per-store sale

Sales Surveys (mail, Focus Informal discussions We dont do Other e-mail, phone) groups with customers market research

Less than $250,000 22% 8% 54% 32% 14%

$250,000-$499,999 26.3% 7.9% 60.5% 31.6% 0%

$500,000-$749,999 40% 17.1% 60% 28.6% 5.7%$750,000-$999,999 5.3% 5.3% 68.4% 26.3% 5.3%

$1,000,000-$1,499,999 33.3% 9.5% 57.1% 33.3% 0%

$1,500,000 or more 34.1% 17.1% 58.5% 29.3% 7.3%

28 percent

11 percent

59 percent

30 percent

6 percent


10


11/24


GEOGRAPHY, MARKET size

and annual per-store sales

seem to have little impact on

the value surveyed jewelersplace on market research to

develop their merchandise,

who as a group cite better

product development as the

main reason they conduct

market research (42 percent).

Rural jewelers did place

more stock in market

research as a way to provide

pricing insight and to

determine product life cycles,

citing these two goals as their

primary ones 18.5 percent

and 14.8 percent of the time,

respectively.

By annual per-store sales,

jewelers in the $1 million to

$1.5 million range most often

set product development as

their main goal of research,at

57.1 percent of respondents.

42%of jewelers say aiding productdevelopment is the primarygoal of their market research.

8What is the primary goalof your market research?

Aiding in product/merchandisedevelopment:

Providing insights for pricing:

Helping determineproduct life cycle:

We dont do market research:

Other:

42 percent

9 percent

10 percent

30 percent

9 percent

By U.S. region

Region Aiding in product/ Providing insights Helping determine We dont do Othermerchandise development for pricing product life cycle market research

Northeast 43.1% 7.8% 11.8% 29.4% 7.8%

South 40.9 4.5% 13.6% 31.8% 9.1%

Midwest 36.4% 15.9% 9.1 27.3% 11.4%

West 46.5% 11.6% 2.3% 30.2% 9.3%

By location

Location Aiding in product/ Providing insights Helping determine We dont do Othermerchandise development for pricing product life cycle market research

Urban 38.7% 6.7% 5.3% 33.3% 16%

Suburban 43.1% 8.8% 11.8% 29.4% 6.9%

Rural 44.4% 18.5% 14.8% 22.2% 0%


Core market Aiding in product/ Providing insights Helping determine We dont do Othersize merchandise development for pricing product life cycle market research

Less than a mile

in diameter 25% 0% 0% 75% 0%


3-5 miles in diameter 37% 3.7% 7.4% 37% 14.8%

5-10 miles in diameter 50% 8.7 10.9% 23.9% 6.5%


in diameter 40.4% 11% 10.1% 28.4% 10.1%

I sell strictly online 33.3% 16.7% 16.7% 16.7% 16.7%


Sales Aiding in product/ Providing insights Helping determine We dont do Othermerchandise development for pricing product life cycle market research

Less than $250,000 40% 16% 4% 36% 4%

$250,000-$499,999 36.8% 10.5% 15.8% 31.6% 5.3%

$500,000-$749,999 40% 11.4% 11.4% 28.6% 8.6%

$750,000-$999,999 36.8% 10.5% 21.1% 21.1% 10.5%

$1,000,000-$1,499,999 57.1% 4.8% 4.8% 28.6% 4.8%

$1,500,000 or more 43.9% 0% 7.3% 26.8% 22%


11


12/24


NINETY PERCENT of jewel-

ers who participated in the

survey say they collect

customer information.By region,virtually all jewel-

ers in the Midwest collect this

data (97.7 percent),while the

Northeast lags behind a bit at

just over 78 percent.

Jewelers with higher annual

per-store sales may be more

likely to collect customer

data. Surveyed jewelers who

report sales in the $750,000

to $1.5 million-plus range

collect such data at a rate of

better than 90 percent,while

those with lower per-store

sales hover in the mid to high

80th percentile.

90%of jewelers collectcustomer information.

9 Do you collect customer data/information?

Yes:

No:

By U.S. region

Region Yes NoNortheast 78.4% 21.6%

South 92.4% 7.6%

Midwest 97.7% 2.3%

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%


Core market size Yes No

Less than a mile in diameter 100% 0%

1-3 miles in diameter 83.3% 16.7%

3-5 miles in diameter 100% 0%


Greater than 10 miles in diameter 88.1% 11.9%

I sell strictly online 83.3% 16.7%


Sales Yes No

Less than $250,000 86% 14%

$250,000-$499,999 89.5% 10.5%

$500,000-$749,999 85.7% 14.3%

$750,000-$999,999 94.7% 4.8%

$1,000,000-$1,499,999 95.2% 5.3%

$1,500,000 or more 92.7 7.3%

90 percent

10 percent


12


13/24



survey respondents says they

use customer data simply to

maintain general contactwith their customers, a good

portion also dig deeper for

more specific information

on customers.

Building relationships with

customers seems to be a

major consideration, as 61

percent of jewelers use the

data they collect to contact

their customers individually.

Creating segmented market-

ing strategies and determining

best customers also are

valued uses of customer data

among all jewelers,despite

demographic differences.

48%of jewelers collect data to determinewho are their best customers.

10 If you collect customer data, in which of thefollowing ways do you use it? (Check all that apply.)To segment our customers for

specific sales/marketing efforts:

To determine our best customers:

To contact ourcustomers individually:

To maintain general contactwith all customers:

We dont collect customer data:

Other:

48 percent

48 percent

61 percent

71 percent

10 percent

2 percent

By U.S. region

Region To segment our To determine To contact our To maintain We dont collect Othercustomers for our best customers general contact customer data

specific sales/ customers individually with all customers

marketing effortsNortheast 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 Othercustomers for our best customers general contact customer data


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%


Core market To segment our To determine To contact our To maintain We don't collect Othersize customers for our best customers general contact customer data


marketing effortsLess than a mile

in diameter 50% 25% 75% 75% 0% 0%

1-3 miles in diameter 33.3% 25% 25% 75% 16.7% 8.3%

3-5 miles in diameter 44.4% 40.7% 63% 88.9% 0% 0%

5-10 miles in diameter 41.3% 45.7% 58.7% 63% 10.9% 6.5%


in diameter 52.3% 53.2% 65.1% 70.6% 11% 1.8%

I sell strictly online 50% 50% 50% 50% 16.7% 0%


Sales To segment our To determine To contact our To maintain We don't collect Othercustomers for our best customers general contact customer data


marketing effortsLess than $250,000 34% 40% 56% 72% 12% 4%

$250,000-$499,999 47.4% 39.5% 57.9% 68.4% 10.5% 2.6%

$500,000-$749,999 51.4% 34.3% 54.3% 65.7% 14.3% 2.9%

$750,000-$999,999 57.9% 57.9% 78.9% 73.7% 5.3% 10.5%

$1,000,000-$1,499,999 42.9% 61.9% 71.4% 76.2% 4.8% 0%

$1,500,000 or more 58.5% 63.4% 61% 73.2% 7.3% 0%


13


14/24


THE VAST MAJORITY of

jewelers surveyed use

multiple means of keeping

in contact with theircustomers, relying most

heavily on individual mailings

(75 percent) and telephone

calls (59 percent).

Individual mailings are

especially important among

jewelers in the South (80.3

percent) and West (79.1

percent);Western jewelers

also make the most phone calls

to customers (74.4 percent).

E-mail is used frequently by

all jewelers but most often

by suburban jewelers (57.8

percent),who seem to con-

tact customers more often in

general than jewelers in urban

and rural areas. Not surpris-

ingly, online jewelers are most

likely to e-mail customers

(100 percent), but also report

using a good amount of bulk

and individual mailings as well

as phone contact.

51%of jewelers e-mailtheir customers.

11 Which of the following methods do you use tocontact customers? (Check all that apply.)Bulk mailing:

Individual mailing:

Telephone:

E-mail:

Other:

By U.S. region

Region Bulk mailing Individual mailing Telephone E-mail Other Northeast 45.1% 72.5% 56.9% 52.9% 3.9%

South 45.5% 80.3% 57.6% 50% 4.5%

Midwest 47.7% 65.9% 47.7% 43.2% 4.5%

West 34.9% 79.1% 74.4% 55.8% 11.6%

By location

Location Bulk mailing Individual mailing Telephone E-mail Other

Urban 44% 77.3% 54.7% 40% 5.3%

Suburban 45.1% 76.5% 61.8% 57.8% 6.9%

Rural 37% 63% 59.3% 51.9% 3.7%


Core market size Bulk mailing Individual mailing Telephone E-mail Other



3-5 miles in diameter 40.7% 74.1% 44.4% 33.3% 14.8%5-10 miles in diameter 52.2% 73.9% 56.5% 34.8% 2.2%

Greater than 10 miles in diameter 44% 77.1% 63.3% 60.6% 5.5%

I sell strictly online 50% 66.7% 50% 100% 0%


Sales Bulk mailing Individual mailing Telephone E-mail Other

Less than $250,000 24% 70% 60% 58% 6%

$250,000-$499,999 39.5% 73.7% 52.6% 39.5% 2.6%

$500,000-$749,999 48.6% 77.1% 62.9% 54.3% 2.9%

$750,000-$999,999 52.6% 89.5% 63.2% 47.4% 5.3%

$1,000,000-$1,499,999 42.9% 81% 57.1% 47.6% 9.5%

$1,500,000 or more 63.4% 70.7% 58.5% 51.2% 9.8%

44 percent

75 percent

59 percent

51 percent

6 percent


14


15/24


ONLY 14 PERCENT of sur-

vey respondents say they buy

mailing lists to solicit new

customers,with jewelers inthe North most likely to use

this practice (17.6 percent)

and those in the South most

likely not to (89.2 percent).

Suburban and rural jewelers

buy mailing lists somewhat

more often than their urban

counterparts.

The widest margin between

those who do and dont buy

mailing lists follows annual

per-store sales;more than 34

percent of jewelers with sales

in excess of $1.5 million buy

such lists,more than double

the percentage of the next

most frequent mailing list

purchasers, jewelers in the

$750,000 to $999,000 per-

store sales bracket.

34%of jewelers with sales of$1.5 million or more buy mailinglists to solicit new customers.

12 Do you buy mailing lists to solicitnew customers?

Yes:

No:

By U.S. region

Region Yes No

Northeast 17.6% 82.4%

South 10.8% 89.2%

Midwest 11.6% 88.4%

West 16.7% 83.3%

By location

Location Yes No

Urban 9.6% 90.4%

Suburban 16.8% 83.2%

Rural 14.8% 85.2%


Core market size Yes No

Less than a mile in diameter 0% 100%


3-5 miles in diameter 7.7% 92.3%5-10 miles in diameter 23.9% 76.1%

Greater than 10 miles in diameter 12.1% 87.9%

I sell strictly online 0% 100%


Sales Yes No

Less than $250,000 6% 94%

$250,000-$499,999 5.4% 94.6%

$500,000-$749,999 11.8% 88.2%

$750,000-$999,999 15.8% 84.2%

$1,000,000-$1,499,999 10% 90%

$1,500,000 or more 34.1% 65.9%

14 percent

86 percent


15


16/24


SURVEY RESPONDENTS

present a mixed bag when it

comes to the time frame in

which they expect to see areturn on their marketing

investments.While 35 percent

expect results over the long

term in the form of brand-

building,another 34 percent

seek almost instant results (1

to 3 weeks) and 27 percent

think in terms of a few

monthsperhaps as a reflec-

tion of short-term advertising.

Suburban and rural jewelers

place slightly more emphasis

on fast returns than urban

jewelers,as do Southern and

Midwestern jewelers com-

pared to those in the

Northeast and West.

By annual per-store sales,

jewelers in the highest

bracket,$1.5 million-plus,

place the most importance

on a long-term marketing

investment to bolster their

brand (61 percent).

35%of jewelers expect long-termbrand-building as a result oftheir marketing investments.


13 Within what period of time do you expect to seea return on a specific marketing investment?1-3 weeks:

1-2 months:

2-5 months:

Over the long-term through

brand building:

Other:

By U.S. region

Region 1-3 weeks 1-2 months 2-5 months Over the long-term Otherthrough brand building

Northeast 27.5% 17.6% 9.8% 41.2% 3.9%

South 39.4% 12.1% 12.1% 30.3% 6.1%

Midwest 38.6% 15.9% 9.1% 34.1% 2.3%

West 27.9% 23.3% 7% 37.2% 4.7%

By location

Location 1-3 weeks 1-2 months 2-5 months Over the long-term Other

through brand buildingUrban 29.3% 18.7% 10.7% 38.7 2.7%

Suburban 36.3% 12.7% 9.8% 34.3% 6.9%

Rural 37% 25.9% 7.4% 29.6% 0%


Core market size 1-3 weeks 1-2 months 2-5 months Over the long-term Other

through brand building


1-3 miles in diameter 50% 16.7% 8.3% 25% 0%




I sell strictly online 16.7% 33.3% 0% 50% 0%


Sales 1-3 weeks 1-2 months 2-5 months Over the long-term Other

through brand buildingLess than $250,000 28% 14% 8% 42% 8%

$250,000-$499,999 44.7% 21.1% 13.2% 18.4% 2.6%

$500,000-$749,999 42.9% 22.9% 5.7% 22.9% 5.7%

$750,000-$999,999 57.9% 15.8% 5.3% 15.8% 5.3%

$1,000,000-$1,499,999 28.6% 9.5% 23.8% 38.1% 0%

$1,500,000 or more 14.6% 14.6% 7.3% 61% 2.4%


34 percent

17 percent

10 percent

35 percent

4 percent

16


17/24


BUILDING BRAND recogni-

tion is the primary goal of

marketing among surveyed

jewelers (44 percent), whoalso cite driving store traffic

and gaining ground on the

competition as important

objectives, across all demo-

graphic lines.

Jewelers with smaller core

markets are more concerned

with driving store traffic than

those whose market reach

extends beyond 5 miles.

Meanwhile,online jewelers

(33.3 percent) and jewelers

with annual per-store sales in

excess of $1.5 million (24.4

percent) both put more focus

on strengthening their posi-

tions versus the competition.

44%of jewelers say building storerecognition is the most importantgoal of marketing.


14 What is the most important objectiveof your marketing?Drive store traffic generally

Drive traffic for a specific event

Create interest in specific products

Build/reinforce your stores recognitionwithin the market

Strengthen your position vs. competitionwithin the market

Drive your business in times when theoverall market is down

Other

By U.S. region

Region Drive store Drive traff ic for Create interest Build/reinforce your Strengthen Drive your business Other

traffic generally a specific event in specific product stores recognition your position when the market

within the market vs. c ompetition is down

Northeast 25.5% 2% 5.9% 49% 9.8% 0% 7.8%

South 27.3% 3% 3% 39.4% 16.7% 4.5% 6.1%

Midwest 27.3% 2.3% 2.3% 43.2% 15.9% 4.5% 4.5%

West 23.3% 4.7% 9.3% 46.5% 16.3% 0% 0%

By location

Location Drive store Drive traff ic for Create interest Build/reinforce your Strengthen Drive your business Other


within the market vs. c ompetition 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%


Core market Drive store Drive traff ic for Create interest Build/reinforce your Strengthen Drive your business Other

s ize traff ic generallya specif ic event in specific product stores recognition your posit ion when the market

within the market vs.compet it ion is down

Less than a mile

in diameter 25% 0% 0% 75% 0% 0% 0%

1-3 miles in diameter 41.7% 0% 0% 41.7% 8.3% 8.3% 0%

3-5 miles in diameter 44.4% 11.1% 3.7% 18.5% 18.5% 0% 3.7%

5-10 miles in diameter 19.6% 0% 4.3% 63% 8.7% 2.2% 2.2%

Greater than 10

miles in diameter 22.9% 2.8% 6.4% 43.1% 16.5% 1.8% 6.4%

I sell strictly online 16.7% 0% 0% 16.7% 33.3% 16.7% 16.7%


Sales Dri ve store Drive t raffic fo r Create in te rest Bui ld/rein force your S treng then Drive your business Other


within the marke t vs.competi tion is down

Less than $250,000 28% 0% 4% 40% 14% 6% 8%

$250,000-$499,999 23.7% 13.2% 5.3% 47.4% 7.9% 0% 2.6%

$500,000-$749,999 40% 0% 2.9% 40% 14.3% 0% 2.9%

$750,000-$999,999 15.8% 0% 10.5% 52.6% 10.5% 0% 10.5%

$1,000,000-$1,499,999 33.3% 0% 0% 42.9% 14.3% 9.5% 0%

$1,500,000 or more 14.6% 2.4% 7.3% 46.3% 24.4% 0% 4.9%


26 percent

3 percent

5 percent

44 percent

15 percent

3 percent

5 percent

17


18/24


SURVEY RESPONDENTS

give almost equal weight to

three marketing challenges:

coming up with an overarchingplan, developing effective

materials to support it, and

placing the materials in the

right media outlets.This

three-way split is perhaps an

indication of the complexity

jewelers find in executing

their marketing strategies.

On the other hand, jewelers

across the board dont report

major difficulty in determining

total marketing spend.

Jewelers in the Northeast

put less than half the signifi-

cance on devising a master

plan that jewelers in other

regions do, but are more apt

to cite developing the creative

as their primary challenge

(35.3 percent).Rural jewelers

find the most difficulty in

choosing media and place-

ment for their marketing

materials (37 percent).

28%of jewelers say devising a masterplan is their biggest marketingexecution challenge.


15 What is your biggest marketing execution challenge?

Devising a master plan

Determining total spend

Developing the creative

Choosing media and placement

Other

By U.S. region

Region Devising a Determining Developing Choosing media Other

master plan total spend the creative and placementNortheast 13.7% 9.8% 35.3 29.4% 11.8%

South 34.8% 13.6% 19.7% 24.2% 7.6%

Midwest 36.4% 6.8% 18.2% 29.5% 9.1%

West 27.9% 7% 32.6% 20.9% 11.6%

By location

Location Devising a Determining Developing Choosing media Other

master plan total spend the creative and placement

Urban 28% 8% 32% 24% 8%

Suburban 29.4% 11.8% 22.5% 24.5% 11.8%

Rural 25.9% 7.4% 22.2% 37% 7.4%


Core market size Devising a Determining Developing Choosing media Other


Less than a mile in diameter 0% 0% 25% 50% 25.%

1-3 miles in diameter 16.7% 16.7% 41.7% 25% 0%3-5 miles in diameter 51.9% 3.7% 14.8% 22.2% 7.4%



in diameter 29.4% 9.2% 24.8% 22.9% 13.8%

I sell strictly online 16.7% 0% 33.3% 50% 0%


Sales Devising a Determining Developing Choosing media Other


Less than $250,000 32% 14% 16% 20% 18.%

$250,000-$499,999 28.9% 10.5% 21.1% 36.8% 2.6%

$500,000-$749,999 17.1% 11.4% 31.4% 28.6% 11.4%

$750,000-$999,999 21.1% 5.3% 47.4% 15.8% 10.5%

$1,000,000-$1,499,999 42.9% 0% 14.3% 33.3% 9.5%

$1,500,000 or more 29.3% 9.8% 34.1% 22% 4.9%


28 percent

10 percent

26 percent

26 percent

10 percent

18


19/24


BY A WIDE margin of survey

respondents, owners are the

primary managers of their

stores marketing budgets.Geographically, owners in

the Northeast (88.2 percent)

and in rural locations (92.6

percent) are most likely to

run the budget, while jewelers

in the Midwest (13.6 percent)

and suburban locations (12.7

percent) are more likely to

hand over that responsibility

to a designated marketing

staff member.

Perhaps reflecting their

larger staff size, 24.4 percent

of jewelers with annual per-

store sales of $1.5 million-plus

have a marketing coordinator

or director manage the mar-

keting budget, compared to 2

percent of jewelers with sales

of less than $250,000.

77%of jewelry store owners managetheir marketing budgets.


16 Who manages your marketing budget?

Owner

Other family member

Designated staff marketingcoordinator/director

Other non-family memberemployee

Other

By U.S. region

Region Owner Other family Designated staff marketing Other non-family Other

member coordinator/director member employeeNortheast 88.2% 5.9% 3.9% 0% 2%

South 74.2% 4.5% 10.6% 1.5% 9.1%

Midwest 72.7% 9.1% 13.6% 0% 4.5%

West 72.1% 9.3% 11.6% 2.3% 4.7%

By location

Location Owner Other family Designated staff marketing Other non-family Other

member coordinator/director member employee

Urban 82.7% 2.7% 8% 1.3% 5.3%

Suburban 68.6% 10.8% 12.7% 1% 6.9%

Rural 92.6% 3.7% 3.7% 0% 0%


Core market size Owner Other family Designated staff marketing Other non-family Other


Less than a mile in diameter 75% 0% 25.% 0% 0%

1-3 miles in diameter 91.7% 0% 0% 8.3% 0%3-5 miles in diameter 77.8% 11.1% 3.7% 0% 7.4%

5-10 miles in diameter 78.3% 10.9% 8.7% 0% 2.2%


in diameter 75.2% 5.5% 11% 0.9% 7.3%

I sell strictly online 66.7% 0% 33.3% 0% 0%


Sales Owner Other family Designated staff marketing Other non-family Other


Less than $250,000 92% 2% 2% 2% 2%

$250,000-$499,999 86.8% 7.9% 5.3% 0% 0%

$500,000-$749,999 74.3% 11.4% 5.7% 2.9% 5.7%

$750,000-$999,999 84.2% 0% 10.5% 0% 5.3%

$1,000,000-$1,499,999 76.2% 0% 14.3% 0% 9.5%

$1,500,000 or more 48.8% 14.6% 24.4% 0% 12.2%


77 percent

7 percent

10 percent

1 percent

5 percent

19


20/24


AS WITH MARKETING

budget, the majority of

jewelers surveyed cite the

store owner as the personin charge of creative (61

percent),with other staff

members trailing far behind.

Outside consultants are

only favored by jewelers in

the top sales bracket of $1.5

million-plus per store,while

those in the $749,999 and

under range strongly favor

placing responsibility for

developing creative in the

hands of an owner or other

family member.

15%of jewelers use an outside consultantto develop their marketing materials.


17 Who is responsible for developingyour marketing creative?Owner

Other family member

Designated staff marketingcoordinator/director

Other non-family memberemployee

Outside consultant/agency

Other

By U.S. region

Region Owner Other family Designated Other non-family Outside Other

member marketing staff member employee consultantNortheast 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%


Core market size Owner Other family Designated Other non-family Outside Other


Less than a mile in diameter 50% 0% 50% 0% 0% 0%

1-3 miles in diameter 91.7% 0% 0% 0% 8.3% 0%3-5 miles in diameter 63% 14.8% 3.7% 3.7% 11.1% 3.7%

5-10 miles in diameter 58.7% 15.2% 10.9% 2.2% 8.7% 4.3%


in diameter 60.6% 6.4% 10.1% 0% 19.3% 3.7%

I sell strictly online 33.3% 16.7% 33.3% 0% 16.7% 0%


Sales Owner Other family Designated Other non-family Outside Other


Less than $250,000 84% 8% 2% 0% 4% 2%

$250,000-$499,999 73.7% 13.2% 2.6% 2.6% 2.6% 5.3%

$500,000-$749,999 54.3% 17.1% 11.4% 0% 14.3% 2 .9%

$750,000-$999,999 57.9% 0% 15.8% 0% 21.1% 5.3%

$1,000,000-$1,499,999 57.1% 0% 19% 4.8% 14.3% 4.8%

$1,500,000 or more 31.7% 9.8% 19.5% 0% 36.6% 2.4%


61 percent

9 percent

10 percent

1 percent

15 percent

3 percent

20


21/24



respondents report that they

dont work with an outside

consultant or agency ontheir marketing strategies,

those who do say developing

the creative is the main

reason (29 percent).

This trend is seen across

the demographics; however,

notably, jewelers with a core

market size of less than

10 miles or with lower annual

per-store sales volume are

significantly less likely to use

outside marketing help.Also,

suburban jewelers are most

likely to consult an agency

about marketing placement

(22.5 percent).

60%of jewelers develop theirmarketing strategies in-house.


18 Do you work with an outside consultant/agency forany of the following? (Check all that apply.)

By U.S. region

Region Developing a master Developing Placement We do not work with Outside

marketing plan the creative an outside marketing

consultant/agencyNortheast 17.6% 29.4% 25.5% 58.8% 3.9%

South 18.2% 24.2% 16.7% 62.1% 7.6%

Midwest 9.1% 34.1% 18.2% 59.1% 4.5%

West 11.6% 32.6% 14% 58.1% 4.7%

By location

Location Developing a master Developing Placement We do not work with Outside


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%


Core market size Developing a master Developing Placement We do not work with Outside


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%


5-10 miles in diameter 13% 28.3% 15.2% 58.7% 6.5%


in diameter 19.3% 34.9% 22% 55% 6.4%

I sell strictly online 16.7% 33.3% 33.3% 50% 0%


Sales Developing a master Developing Placement We do not work with Outside


consultant/agency

Less than $250,000 6% 10% 4% 82% 6%

$250,000-$499,999 5.3% 23.7% 13.2% 68.4% 2.6%

$500,000-$749,999 11.4% 28.6% 20% 62.9% 2.9%

$750,000-$999,999 21.1% 36.8% 21.1% 47.6% 5.3%

$1,000,000-$1,499,999 14.3% 38.1% 19% 47.6% 14.3%

$1,500,000 or more 34.1% 51.2% 39% 34.1% 4.9%


15 percent

29 percent

19 percent

60 percent

5 percent

Developing a mastermarketing plan

Developing the creative

Placement

We do not work with an outsidemarketing consultant/agency

Other

21


22/24


A NEAR MAJORITY of

survey respondents (47 per-

cent) rate in-store financing

programs to be an effectivemarketing and sales tool, but

the degree to which they do

varies.Twenty-eight percent

call such programs some-

what important, and roughly

equal numbers of jewelers

say they are either essential/

very important or not very

important.Almost a third

dont use financing as a

sales tool, perhaps signaling

a growth potential for these

programs.

Meanwhile, suburban

jewelers (24.5 percent) and

jewelers with core markets of

five miles in diameter or less

have the most confidence in

in-store financing programs,

most often rating them as

essential or very important.

47%of jewelers say in-storefinancing programs can bean important sales tool.


19How would you rate in-store financing programs as a

marketing/sales tool?

By U.S. region

Region Essential or ver y Somewhat Not ver y Unnecessar y Do notimportant important important utilize

Northeast 14.6% 29.2% 14.6% 4.2% 37.5%

South 25.8% 19.4% 17.7% 9.7% 27.4%

Midwest 11.9% 45.2% 16.7% 4.8% 21.4%

West 22% 19.5% 17.1% 7.3% 34.1%

By location

Location Essential or ver y Somewhat Not ver y Unnecessar y Do not

important important important utilizeUrban 11.6% 20.3% 17.4% 13% 37.7%

Suburban 24.5% 30.6% 13.3% 3.1% 28.6%

Rural 19.2% 34.6% 26.9% 3.8% 15.4%


Core market size Essential or very Somewhat Not very Unnecessary Do notimportant important important utilize

Less than a mile in diameter 33.3% 0% 33.3% 0% 33.3%

1-3 miles in diameter 30% 20% 30% 10% 10.%


5-10 miles in diameter 14.3% 47.6% 19.% 4.8% 14.3%


in diameter 18.9% 22.6% 15.1% 7.5% 35.8%

I sell strictly online 0% 33.3% 16.7% 0% 50%


Sales Essential or ver y Somewhat Not ver y Unnecessar y Do not

important important important utilize

Less than $250,000 18% 22% 14% 8% 38%

$250,000-$499,999 12.1% 39.4% 24.2% 6.1% 18.2%

$500,000-$749,999 29.4% 17.6% 11.8% 5.9% 35.3%

$750,000-$999,999 11.1% 16.7% 16.7% 11.1% 44.4%

$1,000,000-$1,499,999 25% 30% 15% 0% 30%

$1,500,000 or more 18.4% 36.8% 18.4% 7.9% 18.4%


19 percent

28 percent

17 percent

7 percent

30 percent

Essential or very important

Somewhat important

Not very important

Unnecessary

We dont utilize them

QUESTION FROM OUR SPONSOR

22


23/24


SURVEY RESPONDENTS

seem generally unsure about

the effectiveness of limited-

time financing offers toincrease sales in their stores,

although 29 percent deem

them somewhat effective.

Jewelers in the South are

most likely to find these offers

to be very effective (14.5

percent),while jewelers in the

Midwest most often rate

them as somewhat effective

(40.5 percent).

Conversely, jewelers who

report sales of $499,999 or

less are most likely to rate

limited-time financing offers

as ineffective as a tool for

increasing sales.

38%of jewelers say limited-time financingoffers can help increase sales.


20Are special, limited-time financing offers effective for

increasing sales?

By U.S. region

Region Very effect ive Somewhat Somewhat Ineffect ive Does noteffective ineffective apply

Northeast 6.3% 27.1% 8.3% 10.4% 47.9%

South 14.5% 22.6% 6.5% 9.7% 46.8%

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%


Core market size Very effective Somewhat Somewhat Ineffective Does not

effective ineffective apply Less than a mile in diameter 0% 33.3% 0% 0% 66.7%

1-3 miles in diameter 20% 20% 0% 20% 40%




I sell strictly online 0% 16.7% 0% 0% 83.3%


Sales Ver y effective Somewhat Somewhat Ineffective Does not

effective ineffective apply

Less than $250,000 10% 28% 0% 12% 50%

$250,000-$499,999 9.1% 36.4% 6.1% 24.2% 24.2%

$500,000-$749,999 5.9% 23.5% 5.9% 5.9% 58.8%

$750,000-$999,999 5.6% 16.7% 11.1% 5.6% 61.1%

$1,000,000-$1,499,999 15% 20% 15% 5% 45%

$1,500,000 or more 7.9% 36.8% 7.9% 5.3% 42.1%


9 percent

29 percent

6 percent

10 percent

46 percent

Very effective

Somewhat effective

Somewhat ineffective

Ineffective

Does not apply

QUESTION FROM OUR SPONSOR

23


24/24


AppendixIN ADDITION to answering

the 20 multiple-choicequestions of the marketing

best practices survey, the

204 participating jewelers

each answered the open-

ended questions (A-D) at

right.Weve compiled their

answers to come up with

the four most frequent

responses to each question.

A.What is the share of your marketing

budget by each of the following media?

(Should total 100%)

PRINT

1. 10% (22 respondents)




RADIO






TV/CABLE








DIRECT



3. 20% (11 respondents)4. 40% (10 respondents)

OUTDOOR






4. 0.1% (4 respondents)

WEB/E-MAIL


2. 10% (16 respondents)3. 5% (12 respondents)


LIVE EVENTS





OTHER RESPONSES: Charity auctions, sponsorships,

B.What is your marketing spend by

quarter as a percent of the total?

(Should total 100%)

JAN.-MARCH





APRIL-JUNE





JULY-SEPT.1. 20% (47 respondents)




OCT.-DEC.





C.How do you measure/validateyour marketing programs return

on investment?

1. Customer feedback

2. Change/increase in sales volume

3. Change/increase in store traffic

4. Tracking promotion-specific merchandise

OTHER RESPONSES:year-end sales figures,

accelerated business growth, computer reports,

coupon return, gut feel, dont measure it

D.What is driving change, if any, in your

approach to marketing?

1. Changing customer base/changing market

2. Budget constraints/concerns about the overall

economy

3. Competition/need to differentiate

4. Desire to grow/reach new customers

OTHER RESPONSES: fashion trends, new product,

24

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