Pandora Jewelry Market in Italy: Industry Analysis and Marketing Strategies

This report provides an in-depth analysis of the Pandora jewelry market in Italy, including industry analysis, marketing strategies, and online activities. It covers the company background, products, competitors, and more. The report also discusses the Uppsala internationalization model and cultural factors that impact the market. It concludes with recommendations for Pandora's future growth.

GLOBAL
MARKETING AND
DIGITAL BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
Company background.............................................................................................................3
Products .................................................................................................................................4
Industry Analyses..................................................................................................................4
Competitors in Italy................................................................................................................5
Situation Analysis ...........................................................................................................................5
External ..................................................................................................................................5
Internal ...................................................................................................................................6
Models and theories.........................................................................................................................7
Cultural factors.......................................................................................................................8
Marketing strategies...............................................................................................................8
Porter diamond model............................................................................................................9
Segmentation, Targeting and Positioning of Pandora............................................................9
Born Global .........................................................................................................................10
Online Activities of Pandora................................................................................................10
Recommendations................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In era of high business competition, it is necessary for companies to expand in different
markets. this allows them to sustain for long term and compete with others. for this it is required
to develop various strategies and implement it. alongside, use of technology has enabled in using
digital media to promote to reach large number of customers. However, there exists vast number
of opportunities in global marketplace that can be grabbed by business.
this report will describe about Pandora company market in Italy and industry analysis. Also,
it will be explained about situation of market and some internationalisation theories. Besides
that, marketing and online activities of company will be mentioned.
Company background
Pandora is the jewelry designer and manufacture firm that is specialized in making
handmade jewelry. It prepares neckless, earrings, rings etc. The firm sells its materials across
the world via its stores. It also has many online stores and consumers have facility to buy
materials through its e-stores (Horizontal and vertical integration, 2019)
Italian jewelry industry is growing well over a period of time it has earned huge profit. In
the year 2018 this sector has earned total revenue of 8397.1m. that reflects compound growth
rate of 0.4% as compared to last year. Increasing household expenses has affected the
profitability of this sector to great extent. In the year 2008 economy condition of Italy was falling
due to economic crises, this has created issue of high unemployment rate hence consumers were
not in the condition to spend huge amount in buying expensive jewelries. This has affected its
revenue badly. In the same year tourism activities were very less in Italy hence reduction in
tourism created less favorable condition for the Italy jewelry industry (Domazet and Neogradi,
2019).

Figure 1growth of Italian jewelry market
Later on market condition of this sector has been improved and online shopping was in
trend. Italian online jewelry sector has grown by 21% in the year 2018 and marketers are
assuming that till 2023 kit will reach to 127% growth. This online retail services have helped
industry as consumers are getting heavy discounts and products are available at cheaper rates.
Macros economic condition of Italy is clearly describing that market condition of jewellery
sector will be improved in near future and consumption of people will be moderate.
Products
Pandora offers customized silver and gold jewellery to their costumers all over the world.
Industry Analyses
Industry Analysis
Key finding
The Italian jewelry & watches market has experienced negligible growth in the historic
period. The Italian jewelry & watches market had total revenues of $8,397.1m in 2018,
representing a compound annual
growth rate (CAGR) of 0.4% between 2014 and 2018. In comparison, the French and German
markets grew with
CAGRs of 1% and 2% respectively, over the same period, to reach respective values of
$9,092.1m and $11,388.4m 2018.
The industry of jewellery has experienced a growth after a long time. Manufacturers are
expecting that it is going to be last long. The jewellery industry in the Italian market has seen
revenues of over $ 8 million in the year of 2018. their competitors are those industries which
resides in French and Germany are more than the market of Italy as their compound growth rate
was over 1 and 2 per cent that is $ 9 million and $ 11 million whereas Italy just observed a

growth rate of 0.4 per cent. EU has imposed austerity which has affected the GDP of the
economy and it is reaching at a point which was similar to 2008 recession. This is leading to rise
in the level of unemployment, low confidence in consumers and government of the country is
unable to track the errors. Italy is one of those producers in the industry of luxury goods which
are dominant among others. When the country used to export their goods their market was rock
solid but after the reduction in the sector of tourism they have seen a downfall. Most of the
people who is contributing in the sector of jewellery are those who are Chinese tourists. In the
year 2018 market of jewellery was considered as one of the most lucrative market because of
their revenue which was over $ 4 million around 59 per cent share of the overall market. Also die
to establishment of online market it has seen a drastic shift in the industry as they offer high
discount and convenient shopping experience (Verhoef and Bijmolt, 2019).
Competitors in Italy
Rosantica
Pomellato
Delfina Delettrez
Situation Analysis
External
Pestle analysis of PANDORA
Political factors
It plays a significant role while determining the factors regrading the influence PANDORA
Jewellery, long term profitability within a certain nation or market. PANDORA operating
within goals more that dozen of nations as well as expose itself various types of the political
environment. To accomplishes the success with such a type of the industry which has its
uniqueness all over the world is to diversify various levels of the systematic risks regarding
political environment. Mention below are some factors before and after investing within market.
Political stability as well significance regarding the sector for gold within the nation's economy,
trade regulations,level of corruption in basic material sector,work week regulation within gold,
taxation rates as well as mandatory benefits of the employees.
Economic Factors
Factors that impacted on the PANDORA jewellers such as saving rates,inflation rates,foreign
exchange rates describes about the demand as well as investment within an economy.

PANDORA Jewellery also focuses on growth rate, economic indicators such consumer
spending. Exchange rates,infrastructure quality within industry of gold, educational
level,productivity and labour cost ,unemployment rate, interest rates, inflation rates,Economic
growth rate and many more factors impact on the PANDORA Jewellers (De Mooij, 2019).
Social factors
The society culture as well as way of doing things that influenced the firm's culture. Within this
factor attitudes,shared beliefs of a population plays a crucial role within how marketers at
PANDORA Jewellery will understand the needs of the customers as well as design the
marketing message regarding gold industry costumers. Factors such as skills level and
demographics of the population, health,culture, social conventions, gender roles and many more.
Technological factors
Technology becomes advance and fast over the time as PANDORA monitors the sales out to end
consumers on a daily basis. It focuses on the concepts as well as other expanding stores. They
also establish a seven annual product to their various stores as it enables stores to have new
products that covers all the events as well as drive traffic even within low peak periods.
Legal factors
Trade facilitators becomes one of the crucial role within the promotional activities such
as Displays of diamond, organising new trade workshops as well as take care of the delegations
regarding trade. It also works to make the communication better as well as envelops more
understanding between the government (Zaveri and Amin, 2019).
Environmental factors
The industry of jewellery focuses on addressing its ethical and social responsibilities to the
nation and people regarding the selling and mining of the goods. These types of the industry
focuses on health and safety as well as issues which are related to the environment. It focuses on
the various factors that vary according to the location of the industry as the production Methodist
that are used for the cutting as well as polishing of the gems will surely influences on the health
of the employees working there.
Internal
SWOT Analysis
STRENGTH OF PANDORA

Firm makes the personalized jewellery as for this firm needs the end to end control
regarding its operations. Firms spends its more than tow decades making the strategy as well as
provides the vision to provides the best quality as well as personalize jewellery available their
stores all over the world.
Weakness of Pandora-
The focus of the company is totally on jewellery section. They have the scope to diversify
their market and enter into different product lines such as clothing, textile, accessories etc. this
will create for the company in the long run.
Opportunities of Pandora-
After the establishment of online market company has the opportunity to make their
presence available in the online markets and enter into new categories such as antique, gem,
handcrafted etc.
Threats of Pandora-
Company is facing threats at high level from their competitors such as Chamilia, Chopard
and Mouawad.
Models and theories
Uppsala internationalization model states that companies which want to enter into new country
gradually take steps towards it. Enterprise needs to develop establish chain and psychic while
entering into the new market. There should be poor constant exports and sales subsidiaries must
be build up so that failure chances can be minimized. Use of psychic distance approach can help
in overcoming issue such as language barriers, culture etc. By this way enterprise can run
operations in foreign country significantly. Before entering into new market enterprise has to
analyses the areas that can create opportunity to business and areas that can be threat to firm.
After evaluating these aspect enterprises need to take step to enter into international market.
Entity needs to gather market knowledge and accordingly it has to take its commitment decision
so that entity can generate profit in the new market. If current activities are occurring in
systematic manner then it may give benefit to organization in generating sales and increasing
profit in the international market. Developing trust of stakeholders may help in making network
position of business more strong and can support organization in gaining success. To grow well
in foreign market firms needs to pay attention on consumers those who are essential stakeholders

of business, by gaining trust of them enterprise can run business in new market successfully
(Standing and Mattsson, 2018).
Cultural factors
Hofstede Culture
This model helps Pandora to understand the differences in culture.
Power Distance-
This aspect is concerned with people who belong from lower parts of society and expect
that power needs to be distributed on an unequal basis (Kahre, Hoffmann and Ahlemann, 2017).
Individualism-
This aspect highlights the point of view of people on different groups. They give
importance to their family and themselves on the other hand collectivism gives importance to the
whole group.
Masculinity-
This is concerned with feminine and masculine values. Values which are masculine solve
their issues by fighting. Feminists solve their issues by negotiating with each other as they care
about people (Mishra, Chakraborty and Datta, 2019).
Uncertainty Avoidance-
This aspect states that how the people of Italy are comfortable with the culture that is
uncertain.
Long term orientation-
This aspect is concerned with the view point of people on the basis of short term and long
term vision.
Marketing strategies
4 P's of Marketing-
Product-
Pandora offers high quality products which are both modern and hand made by their
workforce which are highly skilled (Kucharska, 2019).
Place-
It is a multi national company and there headquarters is situated at Copenhagen in
Denmark. They have a strong distribution network as they have more than 7,000 points of selling
and more than 2,000 concept stores.

Price-
The pricing strategy of company is premium pricing as they offer products which are of
high quality. It has been easy for them as the customers they target belong from high level of
income groups. Still the prices they offer are reasonable then their competitors.
Promotion-
The company has high level of visibility in the market which maintains the awareness of
the brand. Company still depends on the strategy of word of mouth which has made them
successful (Chaffey, Hemphill and Edmundson-Bird, 2019).
Porter diamond model
It gives the relative strength to focuses on the strength of one business against another.
Factor conditions- It focuses on the various types of the conditions that involves capital
resource, human resource ,knowledge resource and many more.
Demand conditions – Includes the factors such as market growth rate,market size as well as
market sphistication.
Firm strategies- The competitiveness organization within one nation as well as focuses to set
strategy as well as structure themselves. It will also focus by social ,legal and politcal factors.
Segmentation, Targeting and Positioning of Pandora
Segmentation-
Market of jewelry is clearly defined and segmented. Company mostly focuses on women
jewelry. Gold is sold more than diamonds because of many factors such as prices, culture,
tradition etc. They have segmented their market on the basis of upper class women. All the
advertisements they make is selectively for attracting those women who perceive status as
everything. Even their advertisements is consist of these attributes. Overall they segment their
market on the basis of geography and psycho graphics that is from urban areas, class women and
those women whose age is 20 to 45 years which is on the basis of demographics.
Targeting-
The strategy used for targeting the market is multi segment strategy of targeting. They
offer different products which has been made available for different range of price. This is done
so that they can target different group of people who belong from different income levels. They
use different marketing mix for different products. For instance jewelry sets which are used in
wedding are slightly costlier than the regular ones.

Positioning-
Pandora positions itself as a brand which focuses and believes in reigniting the passion
which is build on its strong level of fundamentals. Other than this company is aiming themselves
to infuse new types of energy so that they can inspire and target more people to sell their jewelry
(Backaler, 2019).
Branding
The firm has distinguish itself by providing high quality jewelry items which reflects on
its luxury jeweler segment. Through this, they are able to create a unique brand image in he
minds of people.
Consumer trends
Nowadays costumers are shift towards on the strong focuses on personalized ans
customized Jewelry. There are more number of the jewelry and seeks pieces that are operated not
as an accessory but as a crucial par of their identity. Moreover customers are looking for the
jeweler that are more flexible accompanied by craft as well as promotes the customization.
Born Global
It is a type of the model that form the starting pursue a vision regarding become global all over
the world. It focuses on the long term plan of Pandora with domestic and international both with
all over the Jewelry related firms of world!
Online Activities of Pandora
Pandora uses this medium to connect with their customers with the help of channels such as
Instagram, Facebook and Twitter in order to communicate the story of brand, enhance the
relationship and inspire them by giving them valuable products so that they continue to be a part
of their community. These medium helps the company to increase their sales and are also the
tools of digital marketing. Company takes the help of these tools to showcase their products and
with this it helps them to increase the awareness of the brand by which they get the customers in
their retail stores which helps them to increase the footfall. This way social media helps the
company to generate offline sales. Company has the advantage over their competitors as they
have more followers than any of their competitors. They still have the scope to add more to it
which is why they keep on taking initiatives by which they can grow their followers. They have
provided a chat facility for their consumers which help them to guide them to the right product.
This feature has its own advantage that is it provides a 24 hour facility. Apart from this company

is also advertising their products on these tools through which they earn from pay per click and
traffic which generates on their portal (Kasemsap, 2018 ).
Recommendations
Pandora has the scope to enter into new markets which are emerging so that they can
increase their share. Other than that they have the option and scope to diversify into different
categories of products such as clothing and accessories. Company needs to consider this option
as many people are not fond of jewelry nowadays and this will create difficulties for them in the
long run if they do not consider this option. They have the scope to extend their product line and
enter into the market of diamonds.
CONCLUSION
From the above studies it has been concluded that Pandora is a premium brand of
Jewellery which offers high end luxury and quality goods. The people targeted by the brand is
those who belong to high income level group. They have the scope to diversify their market
which will help them to increase their share and survive in the market without any difficulties in
the long run. Brief analysis of STP, 4 P's of marketing and pestle analysis has been covered
which helped them to understand which area is most viable for the company.

REFERENCES
Books and journals
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implications for global business leaders. Journal of Digital & Social Media
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Chaffey, D., Hemphill, T. and Edmundson-Bird, D., 2019. Digital business and e-commerce
management. Pearson UK.
De Mooij, M., 2019. Consumer behavior and culture: Consequences for global marketing and
advertising. SAGE Publications Limited.
Domazet, I.S. and Neogradi, S., 2019. Digital Marketing and Service Industry: Digital Marketing
in the Banking Industry. In Managing Diversity, Innovation, and Infrastructure in Digital
Business (pp. 20-40). IGI Global.
Kahre, C., Hoffmann, D. and Ahlemann, F., 2017. Beyond business-IT alignment-digital
business strategies as a paradigmatic shift: a review and research agenda.
Kasemsap, K., 2018. The roles of social media marketing and brand management in global
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453). IGI Global.
Kucharska, W., 2019. Online brand communities’ contribution to digital business
models. Journal of Research in Interactive Marketing.
Mishra, N., Chakraborty, T. and Datta, A., 2019. Breaking the Limits of Language Barrier in
Global Marketing: Crucial for Marketing to the Millennials. Journal of Knowledge &
Communication Management, 9(2), pp.81-93.
Standing, C. and Mattsson, J., 2018. “Fake it until you make it”: business model
conceptualization in digital entrepreneurship. Journal of Strategic Marketing, 26(5),
pp.385-399.
Verhoef, P.C. and Bijmolt, T.H., 2019. Marketing perspectives on digital business models: A
framework and overview of the special issue.
Zaveri, B.N. and Amin, P.D., 2019. Global Marketing Strategy in Digital Era: Global Online
Presence. In Breaking Down Language and Cultural Barriers Through Contemporary
Global Marketing Strategies (pp. 103-112). IGI Global.
Online
Horizontal and vertical integration, 2019. [online] available through : <
https://www.investopedia.com/ask/answers/051315/what-difference-between-horizontal-
integration-and-vertical-integration.asp>