Detailed Business Plan: Jewelry Design in Saudi Arabia Project

This assignment presents a detailed business plan for a jewelry design business in Riyadh, Saudi Arabia. It begins with an introduction highlighting the growing market for luxury jewelry in the region and the increasing demand from a young, affluent population. The plan includes a description of the business owner's experience and qualifications, followed by a thorough situational analysis that assesses the business's strengths, including a PESTEL analysis examining political, economic, social, technological, environmental, and legal factors, and a Porter's Five Forces analysis evaluating competitive rivalry, supplier power, consumer power, threat of substitution, and threat of new entry. The plan further addresses organizational structure, key stakeholders, and a comprehensive marketing plan, including unique positioning, marketing objectives, market segmentation, and marketing strategies. It also outlines budget and financing considerations, corporate social responsibility, and recommendations for business growth. The plan concludes with a summary of the key findings and provides references for the research and analysis conducted.

Running head: BUSINESS PLAN FOR JEWELRY DESIGN BUSINESS IN SAUDI ARABIA
Business Plan for Jewelry Design Business in Saudi Arabia
Name of the Student
Name of the University
Author Note

1BUSINESS PLAN FOR JEWELRY DESIGN BUSINESS IN SAUDI ARABIA
Table of Contents
Introduction......................................................................................................................................3
1. About the Owners of the Business...........................................................................................3
2. Strengths of the Business.........................................................................................................4
2.1. Macro Environment Analysis of the Jewelry Business....................................................4
2.2. Micro Environment Analysis............................................................................................9
3. Organizational Structure and Design.....................................................................................11
4. Identification of Key Stakeholders.........................................................................................11
5. Marketing Plan.......................................................................................................................12
5.1. Unique Positioning..........................................................................................................12
5.2. Marketing Aims and Objectives.....................................................................................13
5.3. Market Segmentation......................................................................................................14
5.4. Marketing Strategies.......................................................................................................15
6. Budget and Financing.............................................................................................................18
7. Corporate Social Responsibility.............................................................................................19
8. Recommendations..................................................................................................................20
Conclusion.....................................................................................................................................21
References......................................................................................................................................23

2BUSINESS PLAN FOR JEWELRY DESIGN BUSINESS IN SAUDI ARABIA
Introduction
The market for gold and diamond jewelry was seen to stand at a value of 3.88 million
dollars in the year of 2016, and this figure is expected to cross the 6 million dollar mark by the
year of 2022 (Kunz et al, 2020). The rising or emerging young population in Saudi Arabia has
been showing an increasing preference for jewelry that is elegantly designed, which is exquisite
to feel and to hold and which can be worn on various occasions, both formal as well as informal.
The desire for sophisticated, high quality and beautiful gold and diamond jewelry in the country
of Saudi Arabia is something that is synonymous with the rising economic development in this
part of the world (Abalkhai, 2020). As such, there is a high demand for gold and diamond
jewelry in different Saudi Arabian cities and towns, with such jewelry being sought after by men
and women alike (Basri, 2020). This assignment prepares a business plan for an aspiring jewelry
design business in Riyadh in Saudi Arabia. The assignment provides a description of the strength
of the business idea, after which industry related issues are analyzed in significant detail. This is
followed by target market identification, market segmentation and an overview of the various
types of marketing strategies, both conventional and digital, that will be put into place in order to
make the business known to one and all in Saudi Arabia after it has been launched in the capital
city of Riyadh. The report concludes with a number of key recommendations that ought to be
taken into consideration by the owners of the business in order to grow and expand this new
business in Saudi Arabia in the most suitable way possible.

3BUSINESS PLAN FOR JEWELRY DESIGN BUSINESS IN SAUDI ARABIA
1. About the Owners of the Business
The jewelry designing business for which this business plan is being prepared is a person
who has been working in the industry for gold and diamond jewelry in Saudi Arabia for the last
four years. This is a person who has all the experience that is necessary in order to set up a new
business in jewelry designing, as this person has been exposed to the many challenges and
difficulties that come with working in such an industry and has a fair idea of the strategies that
need to be brought into play and the decisions that need to be taken in order to overcome such
difficulties and challenges. Over and above the fact that this person has been working in the
jewelry design business for the last four years, this is a person who has also obtained a diploma
in the art of jewelry design. Consequently, the owner of the business is an individual who is well
positioned to start a new enterprise in jewelry design, as this is an individual who not only has a
realistic understanding of the industry and the market in which this business is going to operate
but also has sound knowledge about the skills and techniques that need to be deployed in order to
create beautiful, innovative and unique pieces of jewelry for the chosen or designated target
audience (based on hypothetical scenario).
2. Strengths of the Business
The strength of the business and the possibility of this business surviving in the Saudi
market over a long period of time is going to be evaluated by undertaking a detailed situational
analysis of the enterprise.

4BUSINESS PLAN FOR JEWELRY DESIGN BUSINESS IN SAUDI ARABIA
2.1. Macro Environment Analysis of the Jewelry Business
The macro environment analysis of the business is something that is going to be carried
out by conducting a PESTEL analysis first followed by Porter’s 5 Forces analysis of the
enterprise.
PESTEL Analysis
Political Factors – Saudi Arabia is a country where the political system takes the form of a
hereditary and absolute monarchy. It is the monarch who has full control over the affairs of the
kingdom, and as such the political framework of the nation can be considered as stable and
secure. Businesses that operate in the country of Saudi Arabia can take advantage of the secure
and stable political framework that prevails in this part of the world to run their operations in a
smooth and efficient, without any fear or threat of disruption. The Saudi government does not
impose stringent rules and regulations on business enterprises, both local and international, as a
result of which the new jewelry design business is certain to be able to conduct its operations in
Riyadh without any worry of interference from the monarchical government (Abalkhail, 2020).
Economic Factors – Saudi Arabia is one of the most prosperous nations, not only in the West
Asian region, but in the whole world. The kingdom of Saudi Arabia is one that is home to some
of the largest oil and natural gas reserves across the globe. The country is characterized by high
GDP growth and it is seen to actively encourage foreign direct investment as well. The new
jewelry design business is going to be able to locate the stable economic conditions in which it
can grow, develop and thrive, not only in the short term, but over a long span of time (Abalkhail,
2020).

5BUSINESS PLAN FOR JEWELRY DESIGN BUSINESS IN SAUDI ARABIA
Social Factors – The high rate of economic growth that is seen to prevail in the kingdom of
Saudi Arabia, and the prosperity that is seen to reign in this part of the world implies that the
people of Saudi Arabian society have the purchasing power that is needed to purchase gold and
diamond jewelry, at any and every time of the year. People living in Saudi Arabia have a very
high income, and as such, they are seen to engage in or endorse a lavish lifestyle that entails the
frequent purchase of luxury products, gold and diamond jewelry notwithstanding. The new
business in jewelry designing that will be set up in the city of Riyadh is going to be able to locate
its target audience here with a fair amount of ease, given the high purchasing power and lifestyle
choices of people living in Saudi Arabia (Basri, 2020).
Technological Factors – Saudi Arabia is considered to be one of the most technologically
development nations in the whole world. A substantive sum of money is invested by the
government of Saudi Arabia, every single year on research and development activities pertaining
to science and technology. As such, the people living in Saudi Arabia are all familiar with the
use of the internet and the internet services are made use of extensively for the buying and
selling of commodities in this country. The new business in jewelry design can take advantage of
such advancements in the area of technology, in order to sell its products and services across a
wide target audience, without much difficulty (Basri, 2020).
Environmental Factors – A concern for the natural environment is something that is known to
prevail in a country like Saudi Arabia in spite of this being a desert nation characterized by a
humid and arid climate. Businesses in this part of the world are supposed to conduct their
operations in a way that is in keeping with environmental preservation policies, and which are
not detrimental for the natural environment. As such, the new business in jewelry design will

6BUSINESS PLAN FOR JEWELRY DESIGN BUSINESS IN SAUDI ARABIA
have to conduct its activities in a way that no toxic impact is generated on the natural
environment of Riyadh (Kunz et al, 2020).
Legal Factors – Sharia Law is what governs the legal system in the country of Saudi Arabia.
This is a country that runs solely according to the tenets of Islamic fundamentalist law, and as
such, the new business in jewelry design can rely on an anti-corruption and stringent legal
framework when conducting its operations. The legal framework based on Sharia law that is seen
to be in existence in a country like Saudi Arabia can adequately protect the new business from
fraud, corruption and other ills that can otherwise plague the growth and development of a new
enterprise (Basri, 2020).
Porters 5 Forces Analysis
Competitive Rivalry – The threat of competitive rivalry is something that is fairly moderate for
an upcoming business in a jewelry design in Saudi Arabia. While there are quite a few jewelry
design businesses that are seen to be in operation in Saudi Arabia, including in the capital city of
Riyadh, the high demand that prevails for gold and diamond jewelry here implies that the threat
of competition can be easily combated by the new enterprise, as long as it keeps its jewelry
products uniquely positioned at all times (Khan, 2017).
Bargaining Power of Suppliers – The demand for gold and diamond jewelry in a country like
Saudi Arabia is something that is quite high and there are plenty of businesses in this part of the
world that engage in the manufacture and design of gold and diamond jewelry. As a result, the
bargaining power of suppliers is not too high, something that is going to likely be of considerable
advantage for the new jewelry designing business. It can count on a reliable supply and

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distribution system while running its operations in the city of Riyadh in Saudi Arabia (Khan,
2017).
Bargaining Power of Consumers – Given the fact that there are many jewelry businesses that
are in operation in the country of Saudi Arabia, including businesses that specialize in the
designing of jewelry items, the bargaining power of consumers is something that is certain to be
quite high when this new enterprise is launched in the Saudi market. Customers are likely to be
spoilt for choice when it comes to choosing a business that they can approach for the
procurement of well-designed and sophisticated gold and diamond jewelry hence the new
business is going to have to position its jewelry designs very uniquely indeed in order to capture
the interest and the attention of the target audience (Basri, 2020).
Threat of Substitution – Although it is true that there are many new businesses that specialize
in jewelry design and which are in operation in the cities and towns of Saudi Arabia, the type of
welding and other industrial manufacturing techniques that will be made use of by the new
enterprise for the creation of jewelry items that feature unique designs, is something that is going
to set this enterprise apart from others that are in operation in Saudi Arabia and which in turn is
going to reduce the threat of substitution considerably (Bahaddad et al, 2018).
Threat of New Entry – The high demand that prevails for a product such as gold jewelry or
diamond jewelry for that matter, and the fact that there are so many enterprises in the country of
Saudi Arabia that deal in gold and diamond jewelry design as well as manufacture indicates that
the threat of new entry is quite high. A new business in jewelry design can emerge at any point
of time, that offers cost effective jewelry design and jewelry production services and which is

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able to capture the attention of the target audience of the present business quite easily (Abalkhail,
2020).
Porters Generic Forces Analysis
Cost Leadership – The new enterprise in jewelry design is one that is going to make it a point to
engage in low cost production in the initial stages of its operations, so that it is able to offer its
services in jewelry design and so that it can offer its new and ornately designed jewelry products
at rates that are economical and which are well suited for customers of every budget. By
engaging in cost leadership, the business will seek to capture a major portion of the market in the
early days of its operations (Basri, 2020).
Cost Focus – The products that are offered by the new jewelry design business will be those that
are kept priced significantly lower than the jewelry products that are offered by other enterprises.
By keeping the market price of such gold and jewelry items lower than what is being offered by
rivals and competitors, the new business will attempt to attract the interest of its target audience
much more readily than usual. The price of the jewelry items will be kept low regardless of how
sophisticated and refined the designs and the quality of the jewelry are (Basri, 2020).
Differentiation Focus – The new business in jewelry design is going to focus initially on
drawing the attention and the interest of a target audience of a relatively small size and number.
It is going to engage in differentiation focus based on which it is going to up come with jewelry
designs and forms that are specifically likely to appeal to a certain type of target audience only. It
is going to stick to this strategy for a few months to see how well the designs are being received
by the members of the target audience, young and old (Abalkhail, 2020).

9BUSINESS PLAN FOR JEWELRY DESIGN BUSINESS IN SAUDI ARABIA
Differentiation Leadership – After the business has been launched and has been in operation in
Riyadh for a significant length of time, it is going to undertake the initiative of differentiation
leadership whereby it is going to engage in the production of jewelry designs or ornaments that
are so unique that they capture the attention of not only the target audience in Riyadh, but in
other parts of Saudi Arabia as well. By partaking in differentiation leadership, an attempt will be
made by the business enterprise to grab a hold over the jewelry industry in the county of Saudi
Arabia as a whole (Kunz et al., 2020).
2.2. Micro Environment Analysis
The micro-environment analysis of the new jewelry enterprise is something that is going
to be undertaken now using the framework of SWOT analysis –
Strengths – One of the key strengths of this business enterprise lies in the fact that it produces
jewelry products that are of an excellent variety. There is a wide range of designs, shapes and
forms that customers can get to choose from when they go through what is on offer by this
business. Every care will be taken on the part of this enterprise to provide customers with
jewelry that is made of the purest metal as well (Bahaddad et al. 2018).
Weaknesses – Due to the fact that the procurement of gold metal and the cost of jewelry
production is quite high, the new business is not going to be able to provide its ornaments for
sale, at a price that is truly low. This may deter purchases in the initial stages of the launch of the
business. The initial days are also the time when the business is not going to be served by as
much manpower as it needs in order for it to be considered a well-established jewelry enterprise
in the city of Riyadh (Bahaddad et al., 2018).

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Opportunities – The market and the industry for gold and diamond jewelry in the country of
Saudi Arabia is one that is thriving. The demand for gold and diamond jewelry is at an all-time
high now and this demand is likely to stay for a long span of time, given the fact that the Middle
Eastern region is world famous for its jewelry designs and its jewelry production as a whole.
There is plenty of opportunity therefore for the new jewelry design to expand and to grow in the
country of Saudi Arabia, first in the city of Riyadh and then to other parts of the country as well
(Basri, 2020).
Threats – The high demand that is seen to persist in a country like Saudi Arabia for items such
as diamond and gold jewelry implies that there are many businesses in operation in this part of
the world that are likely to pose a severe threat to this new enterprise. The new enterprise will
have to keep its jewelry designs very uniquely positioned in order to ensure that the ornaments
that it produces for sale in the Saudi market are those that stand out with regard to both
appearance as well as quality (Abalkhail, 2020).
3. Organizational Structure and Design
The new business in jewelry design that will be launched in the city of Riyadh in Saudi
Arabia is one that is going to function under the direction and the leadership of a single owner.
As such, the organizational structure of the new business is going to be that of a sole
proprietorship. It is going to take form and shape under the guidance of a single owner and based
upon its success in the market in Riyadh after a significant period of it having been launched, the
ownership stakes may be extended to more than one person. The type of leadership that will be
implemented to get the business up and running in the initial stages of its operations is a top
down and transformational leadership style. Instructions will be imparted to the people who are

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employed to work for the business, by a single person, who is the owner of the business. Later,
as the business grows and expands in Riyadh, an attempt will be made to hire managers and
supervisors who can oversee the process of design and manufacture, just as is the case with any
large scale jewelry business (Wang & Wu, 2019).
4. Identification of Key Stakeholders
The key stakeholders of the new business are going to be the owner of the business, that is,
the person who is investing in the enterprise and who is going to be taking on the responsibility
of getting this enterprise up and running in the city of Riyadh, the key financiers or investors in
the business enterprise, the employees of the new business, however few in number they may be
and the customers of the business. Out of all the stakeholders, looking into the interest of the
employees of the new enterprise is something that the leadership of the business will have to do
in order to be serviced by a stable base of manpower or human resources without which the
business will fail to function in an efficient manner. The business is also going to have to ensure
that the needs and the expectations of its customers are those that are duly met so that it is able to
create the stable client base that is required for any business to be able to function in a particular
market and a particular industry over a long span of time. The business will also make it a point
to be accountable to the financiers or investors in the business enterprise and to see to it that they
get sufficient returns for the investment that they make in the enterprise, even in the initial days
of operation.