MKT202 Marketing Management Assignment: SK Jewellery Group Case Study

This report analyzes the marketing strategies of SK Jewellery Group, a prominent Singaporean jeweler, focusing on its expansion into the markets of Thailand and China. The assignment details the company's market segmentation approach, utilizing geographic, demographic, psychographic, and behavioral variables to target specific consumer groups, including those in urban areas, with rising disposable incomes, and a preference for luxury goods. The report further explores the market entry strategies employed by SK Jewellery Group, such as business alliances, licensing, and joint ventures, and examines the rationale behind these strategic choices, highlighting the company's adaptability to changing market trends and consumer preferences, particularly within the bridal and luxury goods sectors. The report provides a comprehensive overview of the company's approach to international market expansion and its strategic partnerships.

Running head: MARKETING MANAGEMENT
MARKETING MANAGEMENT
Name of the Student
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Author Note

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Response to Question 2: Segmentation and market entry strategy
One of the most popular jewellers of Singapore, SK Jewellery Group has retail chain
involving more than 60 stores spread across Thailand, China and Malaysia. The Jewellery
Group has grown by identifying and recognizing the changing trends and preferences in the
market. The company has evolved from its store of yellow gold jewellery to diamond and
white gold jewellery (Skjewellerygroup.com, 2019). At present, the company involves a wide
range of jewellery options suitable for almost every form of demographics and occasion. SK
Jewellery Group has been efficient in recognizing various market opportunities, from
expanding in international markets to planning for strategic partnership for offering a wide
range of product offerings. One of the recent business ventures of SK Jewellery Group is to
expand its operations and store presence in the regions of Thailand and China. The prime
reasons behind the expansion plan of SK Jewellery Group were to respond to the opportunity
of growing bridal market, huge population, rising disposable income and the increasing
acceptance towards the customers of western culture weddings in Thailand and China
(Skjewellerygroup.com, 2019). The expansion plan of the company in the new geographical
locations will be addressed by the collaboration of experienced staff members and with the
implementation of strategic business partners (Skjewellerygroup.com, 2019). The company
approached the new markets in Thailand and China by differentiating the offerings through
customization, creating brand experiences and predicting customer needs.
SK Jewellery Group has segmented the market of China and Thailand based on the
variables such as geographic, demographic, behavioural and Psychographic segments.
Geographic segment: The geographical location that was targeted by the company for
expansion was Thailand and China. One of the main reasons for selecting these two
geographical locations was the increasing population and the fastest-rising consumer market.

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The company SK Jewellery Group targeted the urban region in both areas (Dibb & Simkin,
2016).
Demographic segment: SK Jewellery Group segmented the market of on the basis of the
variables such as age, gender, social class, income and family life cycle (Dolnicar, Grün &
Leisch, 2018). The attractiveness of the market of Thailand and China was evident by the
enormous bridal market; thus, the family life cycle of newly married and married couples.
The company targets both male and female both with two different objectives, targeting
female for the jewellery collection for a wedding or daily use and approaching male for
offering assistance regarding the various phases from proposal to anniversaries. Another
reason for expanding the business presence in Thailand and China was the rising disposable
income of the population. High and middle-income groups are another chosen segment
variable for the company, SK Jewellery Group. The company planned for addressing the
changing preferences and needs of the millennial couples between the age group of 23 to 38.
The company also segmented the market based on the social class, as in both the countries;
SK Jewellery Group established its presence in the luxury goods markets or malls with a
distinctive group of clientele. In China, the stores are located in the shopping locality where
consumer have high purchasing power with distinguishing preferences (luxury-shopping
sites).
Psychographic segment: The company, SK Jewellery Group, targeted the segment based on
lifestyle choices and practices, including social and cultural activities. The social and cultural
activities require the Jewellery for wedding season and Jewellery in the form of blessings
from elders to the newlywed women. The motive of buying Jewellery for gifting in the form
of blessing and for wearing pride and distinguishing statement pieces in the wedding by the
bride or family members (Lasserre, 2017). The company targets the consumer groups with a
luxurious lifestyle with the power of affording different style statement and the ability to
express oneself or a life cycle stage with wide-ranged Jewellery.

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Behavioural segment: The company, SK Jewelry Group, strategized the plan of dividing the
market based on end-use, price sensitivity and benefit expectations (Venter, Wright & Dibb,
2015). The chosen segment of the company attracts the consumer groups who are affected by
the price ranges of products they endorse in, selected consumer groups prefers high-priced
Jewellery products or brands for special occasions or consider buying Jewellery, a high
involvement purchasing decisions, therefore, the preference of high price for ensuring
authenticity and uniqueness. The company also attracts the segment of consumer groups who
prefers reflecting a style statement and depicting class or special occasion through well-
crafted unique Jewellery pieces. The end-users for the company are, bride and bride-to-be,
wedded women and mother or sisters of the bride.
The planned distribution and execution procedure of addressing the needs of the new
market targeted by the produced service or goods offerings are known as market entry
strategy (Calvelli & Cannavale, 2019). The market entry strategies adopted by the SK
Jewellery Group to expand the business operation and store presence in Thailand and China
demonstrate its well-strategized and efficient practice of identifying and recognizing the
international market opportunities. For expanding in the market of China, SK Jewellery
Group adopted the market entry strategy that reflects the ability of assured success:
Business alliance: The business alliance strategy of a business includes the agreement
amongst different forms of businesses for creating an effective impact (Collinson, 2015). The
company, SK Jewellery Group, partnered with the World Gold Council, PRC diamond
market, De Beer's International Institute and digital media company, Sarine Technologies for
ensuring the successful expansion in the market of China. The reason for partnering with
digital companies is to offer an Omni-channel presence of global or international expansion
(Mohanty, 2017). The reasons behind this market strategy are, the purpose of improving the
service and product offerings of the store, Love & Co. as it increased the product range of
wedding Jewellery collection in the luxury market. Another reason can be the decision of

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responding directly to the consumer market demand of western-influenced and customizable
wedding Jewellery.
The market entry strategies adopted by the company for entering
Thailand markets are:
Licensing: This strategy involves taking permission from the authorities in a country to open
stores in the consumer market (Collinson, 2015). The company acquired a license for its Love
and Co. store brand.
Joint venture: The company established a strategic joint venture company for selling diamond
and gold Jewellery items in the regions of Thailand under Love and Co. store brand name.
The reasons for selecting these market entry strategies of the company for entering in
Thailand market are:
 For attracting the existing consumer groups of the joint venture association and
enabling the promotion of offered products of the new establishment of Love and Co.
 For ensuring profitability and customer trust in Thailand with the lawful licensing and
joint venture strategy

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References:
Calvelli, A., & Cannavale, C. (2019). Market Entry Strategy. In Internationalizing Firms (pp.
59-110). Palgrave Macmillan, Cham.
Collinson, S. (2015). Foreign Market Entry Analysis. Wiley Encyclopedia of Management, 1-
1.
Dibb, S., & Simkin, L. (2016). Market segmentation and segment strategy. Marketing theory:
A student text, 251-279.
Dolnicar, S., Grün, B., & Leisch, F. (2018). Market Segmentation Analysis. In Market
Segmentation Analysis (pp. 11-22). Springer, Singapore.
Lasserre, P. (2017). Global strategic management. Macmillan International Higher
Education.
Mohanty, S. K. (2017). Globalization, Innovation, and Marketing Philosophy: A Critical
Assessment of Role of Technology in Defining New Dimensions. In Business
Analytics and Cyber Security Management in Organizations(pp. 48-63). IGI Global.
Skjewellerygroup.com (2019). [Online] Retrieved from https://www.skjewellerygroup.com
Venter, P., Wright, A., & Dibb, S. (2015). Performing market segmentation: a performative
perspective. Journal of Marketing Management, 31(1-2), 62-83.