MM52 ACC MARKETING MANAGEMENT

Marketing Plan: Meliza Jewelry 4.0-5.0

Precious Stone New jewelry Line

Ibis Lemus

ibislemus@yahoo.com

(2.0)Situation Analysis
Meliza jewelry is a small company that has sold custom gold jewelry and repair services, for more than 10 years to a lower class or working class. The majority of people in this community, work in lower tier job, they are compensated for their job with a minimum hourly wages, and are Hispanic. This culture tend to Base on their income, this community tends to consume products that are affordable, necessary, or a fundamental feature of this cultural. The Hispanic culture is also very religious culture and very often uses a religious jewelry made of gold, or give religious jewelry made out of gold as important gifts. (http://en.wikipedia.org/wiki/Working_class)
The majority of their products offered by Melisa jewelry are made using precious stone and 14 K gold metal, and gold it be come to expensive. Today their idea is to introduce a new jewelry line that could be more affordable, but maintains the quality and satisfaction of their customer’s expertise. Meliza will implement new technologies that guarantee the precision of the jewelry confections. Meliza jewelry also will introduce the combination of special metals like silver, and Alloys with precious and semi-precious stones. Local and national market research indicates that it’s a great need, and demand for this type of product (Shim, 2010)
Different research has stated that retail sales of jewelry has been stronger than manufacturing industry because many of the major manufacturers company have chosen to shift their operations to other countries like China, India, Israel, and others to save a high percentage of money on the labor cost (Shim, 2010). However,
Today jewelry sales have decreased approximately 2.7% base on the drastic change of the gold price, and the income declining of jewelry consumers during the recessionary period. Jewelry is a product that relatively high income earners purchase. Experts have declared that society tends to measure prosperity by the amount of gold owned by a person, and women prefer to use jewelry to accent their beauty. In addition personalize jewelry, wedding jewelry, and custom jewelry has been some of the favorable jewelries lines in the world market. Meliza jewelry solid business model and experience is the most important key to growth and to have a more stretch relationship with consumers of the all income level. Meliza jewelry also wants to introduce their new product, and their service at the global level (Shim, 2010).
Target
Meliza jewelry sale service, and repair services has been well accepted since 2001. Their quality on their product/service, the introduction that new technology and an effective marketing will be the key for the acceptance of the new line of jewelry they want to introduce in the market. As is mentioned before Meliza Jewelry has focused on the working Hispanic class community which is today the largest minority in the US with a 43 %. According to information provided by the 2010 census Hispanics population has growth from 35.3 millions in 2000 t0 50.5 million in 2010. (Martinez, 2011) This means that Hispanic market is growing faster than others, for what Meliza Jewelry perceive the Hispanic ethnic as a large and young consumer popularity. In addition, different studies have shown that Hispanics represent the faster –growing market in the United States, and also reveals that 43.1 percentage prefer yellow gem jewelry, white gold, silver, and platinum pieces. (Braverman, 2005)
Product service Offering
Today the Hispanic working class is looking for every option in the market to find the product they want that satisfied their need on affordable price. This buying behavior has change because costumer’s jobs are decreasing and affecting their amount of income, during the last 6 years. Meliza jewelry is offering a jewelry line made out of silver, pressure stone, and other metal that haves the same quality as a gold jewelry. They will be beautiful, chain, durable, and strong. The perception of the beauty will depend on the individual, however, this product will include precious stones that don’t change colors, and maintain the natural chining tone. Also will be made out with 100 percentage silver metal, which haves increased in the popularity among consumers in the last 2 years. Meliza also haves made different studies that shows the similarity of quality and properties of Alloy metal and gold and decide to introduce this jewelry made out with this metal in the Hispanic market. This product will help the Hispanic customers to reduce their expenses, and to keep their cultural customs without making any sacrificed. For example they usually use wares a chain with a Crucifix charm as a good luck charm. A gold crucifix charm made out of gold cost today around $130 to $200, but if is made out silver and have precious stone could cost between $60 to $90 dollars. Meliza Jewelry also has an additional advantage, first the new line will be designed with modern styles that attract the young Hispanic popularity, and second they will provide a manufacturing service that will be specialized on personals confections jewelry pieces. Meliza Jewelry wants to provide a service that before was only provided by the big manufacturing company which haves going down from 62055 in 2007 to 56077 in 2011. Some of these companies has file for bankruptcy, and other has taking their company to a foreign country looking for shipper labor force. (Panteva, Regaining its luster: Jewelry stores will rely on, 2011) (Braverman, 2005)
Market Summary
The gold price has consistently risen since 2001, and consumers have increased their preference for jewelry that is made with less expensive metal, and precious stones like diamonds. However the jewelry industry level of consumer sentiment is according to the influence on customer’s desire for jewelry and the retailer’s sales. In addition, the gold price also influenced in the retail price of the jewelry, and younger customers have increased their desire, and need for affordable product.
The following is a chart that demonstrated how gold price have s change during the last 10 years. (Kitco, 2011) According to different sources diamond, watches, and gold jewelry has been the preference in the jewelry market 48% of jewelry consumers’ have preferred diamond jewelry, 13 % prefer watches, and 10.6% prefer gold jewelry. It also has found out that 50 % percentage of a finished jewelry piece price come from the diamonds and not from the gold metal. Meliza jewelry has concluded that consumers today still purchasing gold pieces for the same reasons they do it years before, but are more careful on what type of jewelry they buy, and from who they buy their jewelry. (Panteva, 2011) (Shim, 2010)
.Competitor
Meliza Jewelry competitors are retail store like Wal-Mart, Target, and Kmart. They offer products that are sale at affordable price. Meliza jewelry will educate their target market about the difference between the product and services provided by this retail store and Meliza jewelry store. It also Educate their customers about the evaluation of a quality of durable piece, and the total benefice and cost of a jewelry pieces. This will be their strategies to penetrate in the Hispanic market. Objectives: Meliza Jewelry believes that it’s time to growth and has a set of aggressive, risky, and achievable objectives for the introduction of the first and second year.
First year: Meliza Jewelry’s revenue has been at its lowest for the last three years but they’re aiming to increase their revenue from $90000 to $130000 throughout unit sales volume of $200000.
Second year: Second year objective is to expand our location to another city, and introduce the new jewelry line in Mexico.
Strategies: Meliza Jewelry sale service, and repair services has been well accepted since 2001. Their quality on their product/service, the introduction that new technology and an effective marketing will be the key for the acceptance of the new line of jewelry they want to introduce in the market. As is mentioned before Meliza Jewelry has focused on the working Hispanic class community which is today the largest minority in the US with a 43 %. According to information provided by the 2010 census Hispanics population has growth from 35.3 millions in 2000 t0 50.5 million in 2010. (Martinez, 2011) This means that Hispanic market is growing faster than others, for what Meliza Jewelry perceive the Hispanic ethnic as a large and young consumer popularity. In addition, different studies have shown that Hispanics represent the faster –growing market in the United States, and also reveals that 43.1 percentage prefer yellow gem jewelry, white gold, silver, and platinum pieces. (Braverman, 2005)

Product: The new line of jewelry will have three levels (1-silver and precious stone, 2- Alloy and precious stone, 3-Gold and precious stone). All products will have quality craftsmanship warranty which includes: 60 days refund or exchange privilege (If the merchandise becomes damage as a result of manufacturer defect) Meliza jewelry will repair or replace the item at our option without charges for up to 16 months depending on the jewelry level. The new jewelry line and their packaging will display a new signature logo.
Pricing: Jewelry prices depend on the weight of the jewelry as a hole. Our prices also will depend on the metal price in the market. Usually silver, and alloy is 75 percent less expensive then gold. For example, Gold price was $1537 on May 27, 2011 while Silver was $37 and the alloy was $15. Based on the price a finished piece will cost around $55 to $5 a gram depending on the metal used to make that jewelry piece.( (Kitco, MAy) Distribution: The first year Meliza Jewelry will keep using UPS as their distribution channel base in their experience during their business life. As the business grows they will add other distribution channels. The second year they will begin an investigation to introduce and distribute the new jewelry line throughout smaller retail stores locally and smaller retailer store in Mexico.
Meliza jewelry will introduce the new line the summer of 2011. The first three months they will launch $10000 sale campaign which includes participating in different jewelry expo combined with radio commercials, internet advertising, business cards distribution, and website advertising. The website advertising includes a new website creation that provide customers with a catalog that includes all the designs and prices of the entire jewelry line. This website also provides information that will educate customers about the quality and the benefits of the new jewelry line and the material used in the confection. The website will add a page that gives opportunities to customers to give their feedback about the product, which helps to improve the product and the relationship with the customers. Every form of advertising used by Meliza Jewelry will have the Spanish and English version to help the product to penetrate in the Hispanic market which has greater percentage of people that don’t understand English language. Since Meliza Jewelry has assigned a smaller budget, they will concentrate their advertising campaign the first year on their target which is the local Hispanic community. This campaign is not only used to expose the product it is also to educate customers about the difference among gold jewelry and other metal jewelry. Education is a strong and helpful tool for marketing because influenced in consumer’s perception.
Marketing Communications
The Integration of all massages in all media will be the best way to reinforce the new jewelry line. Base on the company budget for the new jewelry line they decided to use social media like Face book, Twitter, blogs and online forums that are more affordable to dialogue with consumers and to expose, and reinforce the product in the Hispanic market. According to different sources internet service is approximately 15% of the communication methods used by marketers today and Meliza jewelry wants to take advantage of this communication method. The use of Viral ads (often humorous videos passed from user to user via social networking) are also another form of communicate with Hispanic customers. YouTube is the social networking that Meliza Jewelry has decided to use to expose the new line of jewelry, and to reinforce the education of the Hispanic customers locally, and in the world. (Culber, 2010)

Mission Meliza Jewelry owners are Hispanic immigrants and believe that culture, and human values are the most important quality people need to keep, support and enforce. Their company is small, and doesn’t have share holders, or stockholders. However, they want to be part of the 39% of the 1.4 million companies working to keep their culture, and values in the United States, and in Mexico. In addition they are focuses in the need of the Hispanic consumers. The need of the Hispanic community at this moment is to have available and affordable products that maintain the culture, and religious values.
Meliza Jewelry believes that their most valuable asset is their customer’s satisfaction. If a customer is satisfied they will come back, and will open the door to innumerable percentage of customers. (Culber, 2010)They also believe that earning, or losing customers’ trust is what insures the growth of any business. Satisfied customers are a network that transmits a good word about the company’s excellence business.
Meliza Jewelry business values the relationship with their customers for what they are improving their communication channels, to facilitate the products information at any time. For example, they provide every information and advertising in a clear format, and in Spanish/English languages to guarantee every customer’s understanding of the information. In addition, the company’s managers calculate the life value of their existent customers to arrive to the dollar amount value associated with the long-term relationship they have with a customer. And it also helps the company management to determine what type of marketing initiative will aim and increases the retention of a higher portion of the actual customers with the new line of jewelry.
• Today the average store customers spend $300 per purchase
• The gross margin associated with these sales is 42 %, therefore the company average profit per customer purchase is $100.
• The average customer buys in the store approximately 3 times a year.
• The average cost of exposing the product to our customer is $25 per customer
• The cost of acquiring a new customer is $416, this is calculated by assuming the acquisition cost= (cost of exposing the product to our customer/the response rate. In other words: $25/6%=416. (Culber, 2010)
Meliza Jewelry estimates the average customer retention rate to be about 85 % from one year to another.
As specified before the customers’ values calculus help the company to decide what marketing approach need to be implemented to acquire, develop and retain the right customer. The roadmap offer by customer value management stated that Meliza jewelry must evaluate how long the customers most stated with the company in order to pay for the cost of acquisition. Experts have stated that customers must state with the company for more than one year to become a valuable customer for the company. And the company must pay closed attention to those customers’. Meliza jewelry is not focused in customers of higher income; they are focused in the working class that earns an average income approximately of $32000 a year. These costumers have provided profitability to the company during the last 10 years, and have been loyal to their product, and service. (Braverman, 2005)
The relationship is created after, and during customers’ acquisition which is essential to raise the value of the company. For what Meliza Jewelry is concentrated in has maximized the right relationship with their long time, and new customers. They are committed to understanding and responding to the customers’ needs when those needs change. For example today Hispanic customers have the need of a more affordable product that satisfies their cultural needs, and they are committed to work toward increasing the size and frequency of purchase and extending the period of time of customer loyalty. Meliza jewelry is also committed to focus their attention actions on customers that have a higher lifetime value which will be evaluated throughout an accurate analyzing lifetime value. (Culber, 2010)
Target Markets:
Meliza Jewelry has experience with the Hispanic consumers who have the habit of buying jewels. Today they have a medium household’s income which is the most vulnerable population in an unstable economy today based in their education level, and on their income level. The managers of this company know this population is growing, and is more open to new brand suggestions, new product options, and advertising messages that offer a reduction on their spending without reducing their buying need and wants (Contextweb, 2009)
Based on their knowledge and experience of the Hispanic population Meliza Jewelry can see the tremendous opportunity to introduce the new jewelry line and has considered the Behavioral Targeting method which is the less expensive, and will reach a large amount of population, plus through online consumers responds, the company will aggregate consumers data and will optimizing the expected results. In addition to this targeting method the company will invest in new technology that helps to create jewels with sophisticated religious design that will impress Hispanic population with their religious figure perfect ascent. (Braverman, 2005)
The company expects an immediately positive response from the Hispanic consumers for many different reasons. Coming from a Hispanic country Meliza Jewelry owners know that the Hispanic population has been born basically learning the importance of jewelry and impact it has in their culture. Every time a new Hispanic girl is born their grandparents purchases the baby her first pair of earrings. If the newborn is a boy, tradition also demands jewelry: an ID bracelet with an engraved date on the back, a medal, a cross, or a gold chain that kids will wear and keep all their life to remember their grandparents. (ANdres))
For their beliefs they have an advantage over other retail/ manufacture jewelry companies. They know the Hispanic population culture and all the Hispanic costumers’ necessities because they are part of this population. In addition they know this population appreciates and values gold jewelry and has began to appreciate jewels made out with silver and other metals that are natural and valuable as a more affordable options to keep their cultural traditions. The need of this population today is affordable products and service base on their income which is $32600 approximately every year. ( (ANdres))
Meliza jewelry purchase process will begin with a product forecasting, in which they will considerate the percentage of Hispanic grandparents, mothers, or women around the age of 25. As mentioned before grandparents, mothers, or women around the age of 25 are more likely to be the one that buy the jewelry piece for the family new born, or any family members that are children. Every time the family has a kid that is going to have communions, baptism, or birthdays the grandparents or any woman family member tends to buy a jewel piece like rosaries, religious medal, chain , and ID bracelets. This is one of the most important customs of the Hispanic culture. In 2005 the Jewelry consumer opinion council consider that there were 39 millions of Hispanic consumer that were expected to buy 51.1 billion worth of time jewelry rather than meat.
Meliza Jewelry knows that Hispanic consumers first identified the need, evaluate their alternative products preferring, and selecting the product with the lower price. However, Hispanic consumers have an average spending in jewelry of 200 to 1000 dollar per year. To conclude Meliza Jewelry knows that different studies stated that Mexican represents the largest population in every community in the United States, and 55 percentages of these households include children’s under the age of 18 before 2010. By 2010 this populations account 1 million or more in the state of Illinois which means they give larges opportunities for the business growth.
In addition the company has considered the change in the demographics population in the United States to insure they will keep growing. The Census of 2010 provides the entire data which was evaluated and gives a better understanding of how fast this population is growing. They stated that a male population has growth 9.7 percentage in 2009, and females have a growth 8.5 percentage which is a higher percentage compare to other population in the United States. (United States Census 2010, 2011)
Other sources have revealed that Hispanic households tend to be younger in average than the U.S. population at large. Of the more than 10 million Hispanic households, 38 percent are currently headed by someone under 35, and an additional 25 percent are led by someone between the ages of 35 and 44 (the national average for homes with heads under 35 is 23 percent.) By 2010, the under-45 Hispanic market will increase to 8 million households, and its purchasing power will leap from the current level of less than $295 billion to $397 billion. In other words, $3 out of every $5 flowing to Hispanic households in 2010 will be in the hands of this younger-than-average segment. (bor, 2010)
Knowing the culture and characteristics of the consumer target is a plus for any business owners, and managers. Meliza Jewelry know the Hispanic population pay more attention to prices that to brands, are loyal to their culture, and are loyal to business that care about their needs. The new line of jewelry is beneficiary not only for the company is also beneficiary for the customers. As is mentioned before Hispanic population spend 200 to 100 dollar a years, base on the economic instability, and this new line costumers will decrease their expending and will
(3.0) Objectives: Meliza Jewelry believes that it’s time to grow and has a set of aggressive, risky, and achievable objectives for the introduction of the first and second year.
First year: Meliza Jewelry’s revenue has been at its lowest for the last three years but they’re aiming to increase their revenue from $90000 to $130000 throughout unit sales volume of $200000.
Second year: Second year objective is to expand our location to another city and introduce the new jewelry line in Mexico.
Strategies: Meliza Jewelry sale service and repair services has been well accepted since 2001. Their quality on their product/service, the introduction of new technology, and an effective marketing will be the key for the acceptance of the new line of jewelry they want to introduce in the market. As is mentioned before Meliza Jewelry has focused in the working of the Hispanic class community which is today the largest minority in the US with a 43 %. According to information provided by the 2010 census Hispanics population has grown from 35.3 million in 2000 to 50.5 million in 2010. (Martinez, 2011) This means that Hispanic market is growing faster than others for what Meliza Jewelry perceive the Hispanic ethnicity as large and young consumer popularity. In addition, different studies have shown that Hispanics represent the faster –growing market in the United States, and also reveals that 43.1 percentage prefer yellow gem jewelry, white gold, silver, and platinum pieces. (Braverman, 2005)

Product: The new line of jewelry will have three levels (1-silver and precious stone, 2- Alloy and precious stone, 3-Gold and precious stone). All products will have quality craftsmanship warranty which includes: 60 days refund or exchange privilege (If the merchandise becomes damage as a result of manufacturer defect) Meliza jewelry will repair or replace the item at our option without charges for up to 16 months depending on the jewelry level. The new jewelry line and their packaging will display a new signature logo.
Pricing: Jewelry prices depend on the weight of the jewelry as a whole. Our prices also will depend on the metal price in the market. Usually silver and alloy is 75 percent less expensive then gold. For example, Gold price was $1537 on May 27, 2011 while Silver was $37 and the alloy was $15. Based on the price a finished piece will cost around $55 to $5 a gram depending on the metal used to make that jewelry piece. ( (Kitco, MAy) Distribution: The first year Meliza Jewelry will keep using UPS as their distribution channel base in their experience during their business life. As the business grows they will add other distribution channels. The second year they will begin an investigation to introduce and distribute the new jewelry line throughout smaller retail stores locally and smaller retailer store in Mexico.
Meliza jewelry will introduce the new line the summer of 2011. The first three months they will launch $10000 sale campaign which includes participating in different jewelry expo combined with radio commercials, internet advertising, business cards distribution, and website advertising. The website advertising includes a new website creation that provides customers with a catalog that includes all the designs and prices of the entire jewelry line. This website also provides information that will educate customers about the quality and the benefits of the new jewelry line and the material used in the confection. The website will add a page that gives opportunities to customers to give their feedback about the product, which helps to improve the product and the relationship with the customers. Every form of advertising used by Meliza Jewelry will have the Spanish and English version to help the product to penetrate in the Hispanic market which has a greater percentage of people that don’t understand English language. Since Meliza Jewelry has assigned a smaller budget, they will concentrate their advertising campaign the first year on their target which is the local Hispanic community. This campaign is not only used to expose the product it is also to educate customers about the difference among gold jewelry and other metal jewelry. Education is a strong and helpful tool for marketing because it is influenced in consumer’s perception.
Marketing Communications
The Integration of all massages in all media will be the best way to reinforce the new jewelry line. Base on the company budget for the new jewelry line they decided to use social media like Face book, Twitter, blogs and online forums that are more affordable to dialogue with consumers and to expose, and reinforce the product in the Hispanic market. According to different sources internet service is approximately 15% of the communication methods used by marketers today and Meliza jewelry wants to take advantage of this communication method. The use of Viral ads (often humorous videos passed from user to user via social networking) are also another form of communicate with Hispanic customers. YouTube is the social networking that Meliza Jewelry has decided to use to expose the new line of jewelry, and to reinforce the education of the Hispanic customers locally, and in the world. (Culber, 2010)
Mission
Meliza Jewelry owners are Hispanic immigrants and believe that culture and human values are the most important quality people need to keep, support, and enforce. Their company is small and doesn’t have share holders or stockholders. However, they want to be part of the 39% of the 1.4 million companies working to keep their culture and values in the United States and in Mexico. In addition they are focuses in the need of the Hispanic consumers. The need of the Hispanic community at this moment is to have available and affordable products that maintain the culture and religious values.
Meliza Jewelry believes that their most valuable asset is their customer’s satisfaction. If a customer is satisfied they will come back and will open the door to innumerable percentage of customers. (Culber, 2010)They also believe that earning or losing customers’ trust is what insures the growth of any business. Satisfied customers are a network that transmits a good word about the company’s excellence business.
Meliza Jewelry business values the relationship with their customers for what they are improving their communication channels to facilitate the products information at any time. For example, they provide information and advertising in a clear format and in Spanish/English languages to guarantee every customer understands of the information. In addition, the company’s managers calculate the life value of their existent customers to arrive to the dollar amount value associated with the long-term relationship they have with a customer. This also helps the company management to determine what type of marketing initiative will aim and increases the retention of a higher portion of the actual customers with the new line of jewelry.
• Today the average store customers spend $300 per purchase
• The gross margin associated with these sales is 42 %, therefore the company average profit per customer purchase is $100.
• The average customer buys in the store approximately 3 times a year.
• The average cost of exposing the product to our customer is $25 per customer
• The cost of acquiring a new customer is $416, this is calculated by assuming the acquisition cost= (cost of exposing the product to our customer/the response rate. In other words: $25/6%=416. (Culber, 2010)
Meliza Jewelry estimates the average customer retention rate to be about 85 % from one year to another.
As specified before the customers’ values calculus help the company to decide what marketing approach need to be implemented to acquire, develop and retain the right customer. The roadmap offer by customer value management stated that Meliza jewelry must evaluate how long the customers most stated with the company in order to pay for the cost of acquisition. Experts have stated that customers must state with the company for more than one year to become a valuable customer for the company. And the company must pay closed attention to those customers’. Meliza jewelry is not focused in customers of higher income; they are focused in the working class that earns an average income approximately of $32000 a year. These costumers have provided profitability to the company during the last 10 years, and have been loyal to their product, and service. (Braverman, 2005)
The relationship is created after, and during customers’ acquisition which is essential to raise the value of the company. For what Meliza Jewelry is concentrated in has maximized the right relationship with their long time, and new customers. They are committed to understanding and responding to the customers’ needs when those needs change. For example today Hispanic customers have the need of a more affordable product that satisfies their cultural needs, and they are committed to work toward increasing the size and frequency of purchase and extending the period of time of customer loyalty. Meliza jewelry is also committed to focus their attention actions on customers that have a higher lifetime value which will be evaluated throughout an accurate analyzing lifetime value. (Culber, 2010)
Target Markets:
Meliza Jewelry has experienced with the Hispanic consumers who have the habit of buying jewels. Today they have a medium household’s income which is the most vulnerable population in an unstable economy today based in their education level and on their income level. The managers of this company know this population is growing and is more open to new brand suggestions, new product options, and advertising messages that offer a reduction on their spending without reducing their buying need and wants (Contextweb, 2009)
Based on their knowledge and experience of the Hispanic population Meliza Jewelry can see the tremendous opportunity to introduce the new jewelry line and has considered the Behavioral Targeting method which is the less expensive and will reach a large amount of population, plus through online consumers responds, the company will aggregate consumers data, and will optimizing the expected results. In addition to this targeting method the company will invest in new technology that helps to create jewels with sophisticated religious design that will impress Hispanic population with their religious figure perfect ascent. (Braverman, 2005)
The company expects an immediately positive response from the Hispanic consumers for many different reasons. Coming from a Hispanic country Meliza Jewelry owners know that the Hispanic population has been born basically learning the importance of jewelry and impact it has in their culture. Every time a new Hispanic girl is born their grandparents purchases the baby her first pair of earrings. If the newborn is a boy, tradition also demands jewelry: an ID bracelet with an engraved date on the back, a medal, a cross, or a gold chain that kids will wear and keep all their life to remember their grandparents. (ANdres))
For their beliefs they have an advantage over other retail/ manufacture jewelry companies. They know the Hispanic population culture and all the Hispanic costumers’ necessities because they are part of this population. In addition they know this population appreciates and values gold jewelry and has began to appreciate jewels made out with silver and other metals that are natural and valuable as a more affordable options to keep their cultural traditions. The need of this population today is affordable products and service base on their income which is $32600 approximately every year. ( (ANdres))
Meliza jewelry purchase process will begin with a product forecasting, in which they will considerate the percentage of Hispanic grandparents, mothers, or women around the age of 25. As mentioned before grandparents, mothers, or women around the age of 25 are more likely to be the one that buy the jewelry piece for the family new born, or any family members that are children. Every time the family has a kid that is going to have communions, baptism, or birthdays the grandparents or any woman family member tends to buy a jewel piece like rosaries, religious medal, chain, and ID bracelets. This is one of the most important customs of the Hispanic culture. In 2005 the Jewelry consumer opinion council consider that there were 39 millions of Hispanic consumer that were expected to buy 51.1 billion worth of time jewelry rather than meat.
Meliza Jewelry knows that Hispanic consumers first identified the need, evaluate their alternative products preferring, and selecting the product with the lower price. However, Hispanic consumers have an average spending in jewelry of 200 to 1000 dollar per year. To conclude Meliza Jewelry knows that different studies stated that Mexican represents the largest population in every community in the United States, and 55 percentages of these households include children’s under the age of 18 before 2010. By 2010 this populations account 1 million or more in the state of Illinois which means they give larges opportunities for the business growth.
In addition the company has considered the change in the demographics population in the United States to insure they will keep growing. The Census of 2010 provides the entire data which was evaluated and gives a better understanding of how fast this population is growing. They stated that a male population has growth 9.7 percentage in 2009, and females have a growth 8.5 percentage which is a higher percentage compare to other population in the United States. (United States Census 2010, 2011)
Other sources have revealed that Hispanic households tend to be younger in average than the U.S. population at large. Of the more than 10 million Hispanic households, 38 percent are currently headed by someone under 35, and an additional 25 percent are led by someone between the ages of 35 and 44 (the national average for homes with heads under 35 is 23 percent.) By 2010, the under-45 Hispanic market will increase to 8 million households, and its purchasing power will leap from the current level of less than $295 billion to $397 billion. In other words, $3 out of every $5 flowing to Hispanic households in 2010 will be in the hands of this younger-than-average segment. (bor, 2010)
Knowing the culture and characteristics of the consumer’s target it’s a plus for any business owners and managers. Meliza Jewelry know that the Hispanic population pay more attention to prices than to brands, are loyal to their culture, and are loyal to business that care about their needs. The new line of jewelry is beneficiary not only for the company is also beneficiary for the customers. As mentioned before Hispanic population spends 100 to 200 dollars a year based on the economic instability. As a result to this new line costumers will decrease their spending and will maintain they custom culture.
4.0 Control
The purpose of this Marketing plan is to serve as a guide for Meliza Jewelry’s small company to succeed with this new Jewelry line. The following control function is one of the elements that will complement the company’s success. The control functions doesn’t only help the company to evaluate activity, it also assists managers in developing their skills in order to perform at a higher level of satisfaction for the company.
The objective of this marketing plan and their control function are the fallowing
• Ensure that the selected groups of marketing activities are the optimal for the company and their success with the new jewelry line.
• Assists in measurement of customer’s satisfaction.
• Guarantee that the marketing purpose set forth by the company during the planning stage will be achieved.
• Re-evaluate the objective and all the marketing performances.
• Evaluate the level of effectiveness to generate revenue and the level of effectiveness to manage company expenses.
• Ensure that all activities are made toward consumer’s satisfactions.
• Measure the new Jewelry line by its development to suggest any idea to help an effective development.
The following chart will present Meliza Jewelry’s group of employees that will perform as marketers, they have a level of education which qualify them to do the job. They will handle the first 6 months local sales campaign, trade, consumer sales promotion, and public relations efforts . (Philip Kotler, 2009,2006, 2003, 2000, 1997)
4.1 Meliza Jewelry marketing organization
Ibis Lemus Chief Marketing officer
Raul Castrejon Sales managers
Israel Roman Advertizing and promotion management
Carlos Perez Advertizing and promotion Analyst
Maritza Enriquez Regional Sales present in every stages (YMH MArketing Plan, 2008)