Strategic Marketing Management for Pandora Singapore

This paper discusses the strategic marketing management for Pandora Singapore, including the situation analysis, market analysis, and marketing mix elements. It highlights the competitive environment, target market, and their needs. The paper also discusses the pricing, promotion, and placing strategies.

Running head: STRATEGIC MARKETING MANAGEMENT
Strategic Marketing Management
Student’s name:
Name of the university:
Author’s note:

1STRATEGIC MARKETING MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
1. The product and business.............................................................................................................2
Positioning statement...................................................................................................................2
Business objectives and strategies...............................................................................................3
2. Situation analysis.........................................................................................................................3
Porter’s Five Forces.....................................................................................................................3
Critical success factors................................................................................................................4
Direct and indirect competitors...................................................................................................5
3. Market analysis............................................................................................................................5
Market Segmentation...................................................................................................................5
Target market...............................................................................................................................6
Needs of the target market...........................................................................................................6
SWOT analysis............................................................................................................................7
Marketing objectives...................................................................................................................7
4. Marketing strategy.......................................................................................................................7
Marketing mix.............................................................................................................................7
Conclusions..................................................................................................................................9
Reference List................................................................................................................................10

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Introduction
Marketing strategy is the explanation of the business objective to achieve with the
marketing efforts. Marketing strategy is mainly shaped by the business goals. As stated by Hill,
Jones & Schilling (2014), a marketing plan is organised in a way to achieve through marketing
goals. Pandora Singapore manufactures and markets hand-finished and contemporary jewellery
made from high-quality materials at an affordable price. Pandora management has decided to
launch a new product with simple design; however, this comes with the engraving services.
Pandora is going to launch engraving bangles and this service will be done within 7 days after
the day of purchase. Being a Marketing Consultant for Pandora Singapore; this paper aims to
highlight the situation analysis showing the competitive environment of the organisation. This
study will also highlight the market analysis identifying the target market and their needs. In the
final part of the study, marketing mix elements will be explained stating the pricing, promotion
and placing strategies.
1. The product and business
Pandora was founded in the year 1982 and it has it's headquartered in Copenhagen,
Denmark. Pandora jewellery has its presence in Singapore. Pandora manufactures jewellery and
it has its concept shops in Singapore. Pandora has its online store in Singapore along with points
of sale. Pandora's feminine universe offers vast opportunities for the personal expression,
consistently designed from strong brand DNA (Sg.pandora.net, 2018).
Mission statement
The mission statement of Pandora Singapore is to inspire every woman to feel creative in
their self-expression (Sg.pandora.net, 2018).
Vision
The vision of Pandora is to be branded manufacturer which delivers the most personal
jewellery experience.
Positioning statement
Pandora Singapore positions itself as a premium brand which offers best jewellery
products to the women with affordable prices.
The customers buy the products of Pandora as Pandora offers products which are new in
trend. Pandora always tries to surprise the customers with their newly launched products.
Recently, Pandora is to launch engraving bangles keeping in mind the simple design, yet in an
elegant look. The value positioning of Pandora lies in the high quality, modern and genuine
jewellery products at affordable prices. Each of the women has their individual story to tell and
Pandora inspires the woman to tell the story through Pandora's personal collection. Value is all
about celebrating the memories through jewellery making the moments unforgettable.

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Figure 1: Positioning map
(Source: Self-developed)
Business objectives and strategies
Pandora Singapore believes in branded retail experience and Pandora wants to provide a
unique shopping experience to the customers and some of the stores are run by the franchisees.
The online shop of Pandora is also exclusive and the customers can expect to have the best
product through the online platform. Pandora Singapore offers the full assortment of jewellery
and this is the key to the ongoing success of the organisation (Sg.pandora.net, 2018). Pandora
works further to balance the sales of existing and new products. Pandora targets particular
consumers segment in each market that enables relevant segments in each market while ensuring
the brand must remain consistent across Singapore.
2. Situation analysis
Porter’s Five Forces
Industry rivalry: (Medium)
Jewellery market in Singapore is fragmented with small players. In Singapore, the buyers
of jewellery like to purchase from the online jewellery makers. Industry rivalry among the online
jewellery sellers seems to be higher. Gems and jewellery industry in Singapore is more than $1.1
billion (Euromonitor.com, 2018). A large market player is Swarovski. The jewellery produced in
Singapore market has its demand in China, Vietnam and Malaysia as well. The rivalry among the
manufacturers of jewellery is medium as the online market for jewellery is expanding.

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Bargaining power of suppliers: (Low)
Maximum jewellery makers in Singapore use the internal manufacturing facilities.
Pandora produces more than half of the merchandise it sells. Pandora buys polished diamonds
and Pandora purchases the various materials from their suppliers. Therefore, the organisations
have their own suppliers and suppliers do not have large bargaining power. The companies do
not expect a shortage of materials; however, long-term increasing of demand may lead to higher
prices. The switching cost of suppliers is not high.
Bargaining power of buyers: (Medium)
Pandora has great pricing power even if there are large numbers of jewellery
manufacturers in the market. Pandora can increase gross margins showing it passes on the higher
input costs to the customers. The customers of jewellery can visit the concept stores of Pandora
and they can also visit online platform. The customers do not have the power to set the price in
the jewellery industry in Singapore.
The threat of substitutes: (High)
Substitute of jewellery companies are many as the manufacturers of silver, gold,
diamond, stones and gem jewellery are present in Singapore. The customers have various options
to purchase the jewellery from the online and mobile app (Carringan et al., 2017). Singapore
customers also have the options to purchase the fine jewellery, synthetic diamond jewellery and
stones. Substitute in the market is existing physical local stores, online stores and the
international brands (Fossil and Swarovski).
The threat of new entrants: (High)
In Singapore jewellery industry; there are low barriers to entry for the manufacturer to
open jeweller shop and run the business in local market. However, these local marketers can start
their journey through online and they can expand the business easily. It is very easier to run the
business in Singapore as Singapore government provides help to the business people to run the
business. The local retailers of jewellery have the further opportunity to give repair service and
small retailers cannot be matched with the branding efforts also.
Critical success factors
Critical Success Factor (CSF) is also a high-level goal which is critical for the business to
meet. Critical success factors should be vital to the success of the organisation, give benefit to
the organisation and link directly to the business strategy (Osei-Kyei & Chan, 2015). Pandora’s
success factors lie in the increase of market share through the current customers in Singapore
market. Pandora inspires the customers through providing the culturally relevant products for
different seasons and occasions. Pandora is also increasing the frequency with which they go to
market with new products. In order to increase the market; Pandora is digitalised the brand
experience which inspires the seamless consumer touch point to inspire the existing customers.
Another critical success factor for Pandora is to be service-oriented when they work with the
customers. Pandora is service oriented company through navigating channels and across online
and offline touch points with same personal experience. Pandora communicates with the
customers through influencers of social media along with PR events and sponsorships. Another
critical success factor of the company is to align the rewards and incentives with employees’

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roles for increased employee satisfaction. In Singapore, Pandora has almost 1,000 employees and
Pandora takes winning omnichannel retail to grow in the market.
Direct and indirect competitors
Jewellery firms Strengths USP
Aspial (Direct
competitor)
A Chain boutique in Singapore and
it is one of the largest jewellery
companies in Singapore. Asipial
Corporation owns Lee Hwa,
Citigems and Goldheart brand.
It offers top ranges products
for the young generations. It
also offers customised
jewellery for the customers.
Swarovski (Direct
competitor)
It is mainly Austria based jewellery
organisation and it offers various
ranges of jewellery to the customers.
It provides the sterling fashion
crystal, gemstone and personal
accessories products to the
customers.
Swarovski provides corporate
merchandising through direct
mail. It is mainly famous for
the luxury products, diamond,
lead glass jewellery and
sterling silver.
Fossil (Indirect
competitor)
It is also a US-based organisation
and it is famous for the designer
jewellery. Fossil provides jewellery
for both men and women.
In Singapore, the customers
can have the jewellery through
an online platform. Fossil
jewellery also makes licensed
accessories.
Table 1: Competitors of Pandora
3. Market analysis
Pandora is going to launch engraving services for the bangles and Pandora is going to
provide simple yet customised stuff. The engraving services will be done within 7 days after the
day of purchase. In Singapore, the mid-range customers are much bigger than the high-end
jewellery customers and this section provides the massive opportunity for the large-scale market
expansion. In the coming five years, Singapore jewellery market can increase by 3% annually
(Jalaludin et al., 2018). Today; the worth of Singapore jewellery market is $3.5 billion and
approximately 25% of the jewellery contains diamond. Antwerp exported polished diamond to
Singapore worth of $ 315 million in the year 2016 (Euromonitor.com, 2018). Pandora mainly
targets the mid-range customers who can contribute the maximum to the overall sales.
Market segmentation
Market segmentation is the process of segregating the broad consumer, normally
consisting of existing the customers into subgroups (Alt & Iversen, 2017). Pandora can segregate
the customers into a geographic segment which can be based on locations. The demographic
segment can be divided into gender, age, occupation and socio-economic group. Pandora can
segregate the customers into male and female and young customers will be targeted. The
behavioural segment will be based on the rate of usage of the customers, benefits sought, loyalty
status and readiness to purchase. Psychographic segmentation can be based on personality,
lifestyles and class of the customers.

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Target market
Target markets of Pandora of the engraving bangles are the young generation, regardless
of gender. Pandora is going to target the young generation who like simple yet customised
jewellery. Young generations of Singapore are fashion conscious and they use the internet to
check the new fashion trend (Huggins et al., 2016). Pandora is going to use the social media to
promote the bangles and to attract the young generation. 77% of Singaporean youngsters are
Chinese and 14% are the Malays; these two cultures both prefer to wear jewellery and bangles.
Young generations spend money on their preference; therefore; they can afford the bangles.
Target customer profile
 Aged 20-35
 Recently graduated and the young professional
 Looking for the affordable jewellery
 Mainly female
 Looking for customised jewellery
 Has tried multiple jewellery products
Needs of the target market
In Singapore, middle-class customers regularly buy the medium priced jewellery
products and the women also like to purchase from home-shopping through television. Educated
young women also like to purchase from the online platform. In Singapore; soft economic
conditions decreased the consumers' confidence to spend and it reduces the value of growth in
jewellery. Needs of the young generation in Singapore are mostly fulfilled through online as
79% of millennials in Singapore shopped online in 2015-16 of which 2 in 5 shopped cross-
border. When it comes to jewellery, the women mainly like to purchase the gems, bangles and
customised jewellery. Young and fashion conscious customers are less willing to spend on
expensive jewellery as the young customers move on to new pieces each season (Madhavi &
Devi, 2015). Therefore, the desire of the customers is to stay fashionable and live on the verge of
the trend. The young generation does not like to visit the concept stores or the physical stores and
they purchase through online. They want to have the online platform to be convenient, fast
processing, secure payment and from a trusted brand.
The fundamental wants or needs that the customers satisfy by consuming the products
and it is the core benefit of the products. The generic product is the version which contains only
characteristics necessary for the function. The generic product of Pandora is ring and bangles.
The customers expect a set of characteristics which buyers normally expect and agree to when
they purchase the product (Dreyschultze et al., 2017). From Pandora; the customers expect to
have the best design with affordable price. Augmented products are the features, competitors
attributes that serve to differentiate the products. Pandora makes itself differentiate from the
design and international offering.
SWOT analysis
Strengths
 Pandora sets the trend in the industry;
its bracelets and its personalised
jewellery are the trendsetters
 Pandora has its presence in the global
Weaknesses
 Pandora has its weakness in poor
communication strategy as in this age
of advertising; Pandora uses the poor
advertising strategy which reduces the

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market, almost more than 100 countries
 Pandora manages to do end to end
control of the operation. Pandora has
spent more than 20 years in crafting the
strategy and its business model
 In Singapore, jewellery is taken as
expensive materials; Pandora
repositioned the jewellery through
unforgettable memories.
visibility of the brand with the result.
 Pandora operates in poor planning as it
increases the prices to supplement of
the poor margin. Pandora also re-
engineers the products to satisfy the
upmarket customers.
Opportunities
 Distribution strategy of Pandora has
been revamped and through expanding
the distribution strategy; Pandora can
reach large numbers of customers
 Pandora uses franchisee and it has its
own concept stores to expand the
business in many other regions.
Pandora can start the franchisee
training to make them understand about
the merchandising, performance and
product development.
 Pandora works to spend more to
understand the preferences of the
customers (Sg.pandora.com, 2018).
Threats
 Competitors in Singapore market are as
large as the main competition of
Pandora is with Chamilia, Aspial and
Fossil.
 Pandora has its focus mainly on
jewellery, not on the other domain.
Table 2: SWOT analysis of Pandora
Marketing objectives
Marketing objective of engraving bangles will be:
 To grow the market share by 3% in Singapore among the young generation
 To reach the young generation through social media
 To increase the sales of customised jewellery
4. Marketing strategy
Marketing mix
Product: Pandora Singapore offers a various wealth of charms, rings, bracelets, earrings,
pendants and necklace (Ju, Hu & Sun, 2017). Pandora is going to launch its bangles and the
bangles are in various shapes like crowned heart, princess tiara, Pandora Shine, Moments silver
bangle and essence silver. Pandora is mainly famous for the new collection of the engraving
bangles and the collection will be named as ‘be different-make it yours’. The engraving services
will be done within seven days after the day of purchases. Pandora provides the customised
services to the customers and these bangles will be discreetly hand-engraved with a personal
message and are adjustable for the perfect fit.
As stated by Iqbal, Nadeem & Zaheer (2015), product differentiation is the process which
showcases the differences between the products and it shows the unique qualities of the products.

8STRATEGIC MARKETING MANAGEMENT
Pandora Singapore will take the product differentiation strategy as Pandora will offer the product
which will be new and more attractive comparing by contrasting its unique qualities with other
competing products. Pandora can differentiate the products based on the features, performance
quality, customisation, reliability and durability. Pandora will have a competitive advantage
through engraving bangles as the customers view these bangles as the unique or superior. In
addition, Pandora Company can also use the product line strategy where the organisation uses
the group of related products under the single brand sold by the company. The company can use
the multiple product lines under the numerous brands. Line stretching is also an expanding
strategy of the company where the new products can be launched in the same product line;
however, the beyond product range with different features. Pandora will provide a warranty of
six months of their customised bangles.
Price: Pandora will take price skimming strategy when they will start selling the
engraving bangles to the customers in the open market through the concept stores and through an
online platform in Singapore. As opined by Toptal & Cetinkaya (2015), price skimming strategy
sets the relatively high price at the initial stage and then the management lowers the price over
time. Pandora will set the price higher at the primary stage as the customers' interest in engraving
bangles will be higher as this temporal version of price will yield a good amount of revenue to
the organisation. Price skimming will provide the benefit of giving high-profit margin to Pandora
and it will work as cost recovery in developing of the products. Pandora can also provide to the
dealer profits as the percentage earned by the distributor will be high.
Place: Pandora will sell the engraving bangles through an online platform in Singapore
and Pandora has its concept stores in Singapore as well. Retail stores of Pandora are situated in
Singapore and the customers can have the engraving bangles in these retail stores as well. The
customers have to purchase the bangles first and they can engrave the message or names on the
bangles. This customised service will be done within 7 days. The stores can be located through
the website. The distribution chain of Pandora is well managed and Pandora mainly uses the
single distribution channel to sell the products.
Producers >>>> Retailers>>>>Customers
Promotions: In order to make the best branding of Pandora; the organisation will try to
make famous use of the logo. The engraving bangles will be promoted through social media
network as Pandora has its Twitter, Facebook and Instagram. Pandora can take SEO and PPC
strategies to attract the customers through the internet.
Activities Facebook Twitter Instagram
Social media presence Sharing news, photos,
posts
Sharing news, photos Posting images and
videos
Brand presence Facebook business
page
Twitter page and
followers, retweets
Company page and
link with Facebook
The increase of
website traffic
Posting a link and
asking likes and
comments
Posting a link of
website and share
price
Posting a link and
exclusive image
Table 3: Social media strategy of Pandora

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In order to make it popular among women, this jewellery will be promoted through
fashion magazines, both in online and printed format. Pandora will also use blog by the famous
jewellery reviewers to promote their products. Singapore based shopping malls will be targeted
to do the events to make the bangles popular among the young generations.
Conclusions
It has been observed that Pandora is one such large jewellery manufacturing organisation
and it sells a variety of products to the customers through retail, concept stores and online
platform. It has also been observed that direct competitors of Pandora are Fossil and Aspial. The
competition in the jewellery industry is intense and critical success factors are service-oriented
and rewards and motivation. Pandora is offering engraving bangles for the young generation and
these bangles are targeted to the young customers who like to wear customised stuff. Therefore,
Pandora is taking price skimming strategy so that their tailor the marketing objectives of having
market share and increase the sales

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