A

SUMMER TRAINING REPORTONcustomer perception about the product and company

Submitted Bydeep virmaniMBA- III SEM.Registration No.: 11204175Section q1203

Guided by:Ms. mallika rani submitted to:mr shekhar BISHT (deputy manager)karvey stock brocking ltd,dehradun

ABSTRACTIn India, there are currently various ways to invest and accumulate gold which includes physical gold bars, gold coins, jewellery, gold ETFS, gold fund of funds and gold futures. The majority of the demand is for physical gold, the market for which is highly unorganized. Moreover there has been a distinct increase in the demand for physical gold backed savings product in the last few years. So as to assist in the development of a mature gold market in India, Reliance Money along with World Gold Council as its marketing associate has launched MY GOLD PLAN, which is a next generation Gold Savings Product. This revolutionary new plan lets customers buy gold conveniently in small amounts, based on a Daily Average Pricing Methodology. The plan makes gold accumulation transparent and straightforward, allowing customers to convert accumulated gold grams into coins or jewellery at multiple outlets across India. Reliance My Gold Plan offers customers the unique opportunity to start accumulating physical gold using a daily average pricing methodology. A minimum subscription of Rs.1000 per month translates to accumulation of gold for as low as Rs. 50 per day. Therefore this research attempts to study the above subject with reference to both the American and Indian Mutual Fund industry and determine reasons what restricts these funds from taking a giant leap in their growth figure.

TABLE OF CONTENTSIntroduction Company profileliterature reviewresearch methodologyfinding and analysisCONCLUSIONrecommendationBibliography

INTRODUCTION

COMPANY PROFILE Member National Stock Exchange(NSE) and The Bomb Y Stock Exchange(BSE). Karvy Consultants Limited was established in 1982 at Hyderabad. It was established by a group of Hyderabad based practicing Chartered Accountants. At initial stage it was very small in size. It was started with a capital of Rs 150000. In starting it was offering only auditing and taxation services. Later it acts into the registrar and Share transfer activities and subsequently into financial services and other services like Financial Product Distribution, Investment Advisory Services, Demat Services, Insurance e.t.c. Today Karvy has access to millions of Indian Shareholders, besides companies, banks, financial institutions and regulatory services. Over the past one and half decade Karvy has evolved as a veritable link between industry, finance and people. In January 1998, Karvy became first Depository Participants in Andhra Pradesh. An ISO 9002 Company. Karvy,s commitment to quality and retail reach has made it an Integrated Financial Service Company. Today Company has 230 Branch Offices in 164 cities all over India. The Company service over 16 million individual investors ,180 corporate and handle corporate disbursements that exceed Rs.2500 crores.

WHERE KARVY STAND IN THE MARKET?

KARVY is a legendary name in financial services. Karvy,s credit is defined by its mission to succeed, passion for professionalism, excellent work ethics and customer centric values.Today Karvy is well known as premier Financial Services Enterprise, offering a broad spectrum of customized services to its clients, both corporate and retail.

KARVY GROUP:Karvy Consultants Limited.Karvy Securities Limited.Karvy Investor Services Limited.Karvy Stock Broking Limited.The perception of gold in indiaSince November, the price of gold has been unstable but in April, its decline was precipitated. What is surprising is not the fall itself but its speed. In just two sessions, gold prices dropped 13 percent in the steepest fall in 33 years. It wasnt gold alone that got caught in the bear grip. Prices of other commodities such as silver, crude oil, copper and so on also declined, but not as sharply.Why? Simply because the factors that caused commodity prices to rise in the last five years were no longer relevant. Gold was selling at $625 an ounce (860 rupees per gram) only six years back in 2008. That October, the world was plunged into a financial crisis of an unusual magnitude. Since then, there has been a rush for gold as an investment. Stock markets crashed, interest rates plunged, investors lost faith in financial assets and opted for gold as a safe investment.That presumption was supported by subsequent trends in gold prices. Over the next five years, prices shot up in India as much as 3-1/2 times, making gold not only safe but also the most lucrative investment. The stock market took all that time to recover from the 2008 shock but has not, even now, come up to pre-crisis levels. Gold became a preferred part of the portfolio and gold-backed exchange traded funds (ETFs) were a favourite with investors.The financial crisis had engulfed the world economy. Some countries such as the United States, Japan and the UK went into short recessions. Most emerging market economies had to slow their pace of growth. In this context, gold became a hedge against economic adversity. These conditions have now changed and caused gold prices to fall.Dow Jones is back in the hands of the bulls, home prices in the U.S. have been rising, the Federal Reserve will reduce asset purchases which were used to pump in money, and the dollar has gained against the euro and yen. As a result, confidence in the financial markets has returned, making alternatives to investment in gold more attractive.The trigger for the collapse of gold prices on April 13 was mainly the decision of the Cyprus government to raise money by selling gold valued at $523 million. That was supported by the European Central Bank which even encouraged other countries in Europe facing sovereign debt problems to do likewise, creating the scare that the market for gold will be flooded. The price of gold dropped in anticipation. Many investors trimmed their positions in ETFs but not retail investors.The fall in the price of gold is a market adjustment influenced by greater confidence and better yields in other assets. Possibly, there may not be further price correction in the current year except for short periods. But a sharp increase in prices is equally unlikely. That does not make gold a good investment for the present.

When stock prices tumble, most investors are tempted to sell their shares and stash the money somewhere safer. But the recent meltdown in gold prices has drawn quite a different reaction from most people: Great! Can I go out and buy gold, now that it is finally cheaper? The short answer is: Yes, you can. But do so after you understand the factors that are set to drive gold prices. Fundamentals will rule Any asset that rockets up for 12 straight years and gains eightfold in that time, as gold did, is setting itself up for a correction. This correction in the global gold markets is likely to be sharp and messy as speculators who were betting on quick gains react to this fall and worsen it by retreating en masse (see accompanying article). But once the froth goes out of the market, it is golds fundamentals as a commodity that will set the long-term direction for prices. We think three key factors will decide the global gold price outlook over the next two-three years. Central bank buying One key trigger for the recent gold price meltdown was the fear that troubled European central banks, tired of printing money, would now liquidate their gold reserves to raise cash. First there were reports that Cyprus government was planning a sale of its gold holdings to fund its bailout package. After much hand-wringing, it came to light that Cyprus gold reserves, at 14 tonnes, are too small to cause a ripple in the global market (According to the World Gold Council or WGC, 4,400 tonnes of gold were bought last year). Then the bears pointed out that the worry, really, was about other troubled European nations following suit particularly Portugal, Ireland, Greece and Spain. With a combined war-chest of 3,100 tonnes of gold, there is no doubt that concerted selling by these four could cause the bottom to drop out of the gold market. But a lot depends on how much gold the banks decide to sell and how they structure the sales. Central banks are fully aware that selling big chunks of gold into the relatively illiquid spot market can cause prices to nosedive. Indeed, this was why, when the IMF and the developed nations decided to reduce their gold reserves between 1999 and 2009, they agreed on annual quotas for these sales. Euro Zone banks too, if they decide to sell gold today, will probably offload their gold in measured doses spanning many years. But will they find ready takers for all that gold? They may. Over the last five years, central banks from oil-rich and emerging nations, keen to diversify their foreign currency reserves, have displayed a prodigious appetite for gold. Russia, China, India, Saudi Arabia and others have bought 9,000 tonnes of gold from global markets in the last five years, show WGC data. This more than offset the 3,100 tonnes sold by the IMF and developed nations. Trends in central bank gold reserves show that only 25 of the 125 nations tracked by the Council have reduced their gold holdings in the last five years. The rest have held on to or raised their gold hoard. Boost to Jewellery Another factor that has hastened golds recent fall is outflows from gold exchange traded funds or ETFs. So what will be the outlook for gold if investors beat a mass retreat from it? Well, golds relentless rise in the past five years certainly owes a lot to newfound investor appetite for it. WGC data show that investment-related purchases of gold more than doubled between 2007 and 2012 as gold soundly trounced other investment avenues, on its way up. As prices rose, though, jewellery buyers and industrial users tightened their belts. While jewellery purchases shrank by 22 per cent, industry-related purchases fell by 11 per cent in the last five years. Now, with a reversal in gold prices, there is every possibility that the tables will turn. Investors may desert gold for the flavour of the month equities. But as gold languishes at a price that is 20 per cent cheaper than it was just a few months ago, buyers in emerging markets such as India, who view it as an essential festival/wedding purchase, are likely to throng back to the shops. This rebound in jewellery purchases can make up for a good portion of the diminished demand for ETFs, bars and coins. Last year, jewellery buyers spent $103 billion on 1,900 tonnes of bullion, at average gold prices of $1669/ troy ounce. Even assuming consumers do not increase their gold budgets at all, they would still be able to buy 2,300 tonnes of gold at todays prices. Thats a 400-tonne addition to annual gold demand and can offset a 30 per cent decline in gold investments. Low prices to cut supply A sustained bull run in any commodity normally tempts producers to churn out more of it. This ultimately leads to over-supply and a price correction. But gold has proved quite an exception to this trend. The decade-old price rally hasnt really prompted mining companies to open up a rash of new mines. Instead, rising production costs and labour troubles have made it difficult for smaller miners to sustain profitable operations in recent years. That is why, while gold demand has climbed at a 7 per cent annual rate over five years, supply has crawled up at less than 3 per cent, despite stratospheric prices. Gold price declines beyond a point will actually end up curtailing gold supply further. A recent estimate by Gold Fields Mineral Services suggests that it cost global gold miners about $1,150 on an average to turn out an ounce of gold in 2012, but many South African miners operate at much higher costs. At gold prices of $1,300 or less, it is estimated that about 15 per cent of the global mines may have to shutter their operations. This cost structure, in fact, suggests that $1,300 an ounce may be a good floor for the recent correction in gold prices. If at all prices do break below this floor, it will be at the cost of a further shrinkage in supplies. This is the level at which retail investors can step in to buy. Do it in measured doses Convinced that this is the right time to buy gold? Go ahead but keep the following caveats in mind:Gold isnt an investment. It is portfolio insurance. The main argument for investing in gold is that it does well when other assets are in retreat. Indians must invest in gold as a hedge against a tumbling equity market and a sliding rupee. But this also means that gold must not make up over 10 per cent of your portfolio. Would you shell out your entire salary towards insurance premium? With golds fundamentals turning less rosy this year, keep your return expectations moderate. Gold may not repeat its five-year annual run rate of 15 per cent. As gold offers no regular cash flows, there is no intrinsic value that we can assign to, say, a bar of gold. This means that gold prices can theoretically decline to any extent in a corrective phase. It would be a good idea to start buying now, but to phase out your purchases over 4-5 instalments to benefit from volatile prices. For the last 12 years gold had shown a massive build on interest. The bull cycle was extended so much that it looked ballooning in 2013. The corrective wave has approached the bullion this year and it is so hard for many to believe that gold can correct so steeply.

Indian gold prices have slipped and still counting on the lower side. The world's over-bearish bets on gold have pressed the need to think that whether right time has come to revisit gold in your kitty. Today, on the occasion of Akshaya Tritiya, we have come up with six points which show that the time has come to book some profits in gold investments.

Investment doesn't disallow profits:The first important thing that an investor must understand is that in no way do investments disallow profits. This means that if you had invested in gold you can also book profits, provided you want to do so. Some investors are confused about the timing of booking profits and when they miss the train they become frustrated. The approach should be to chalk out what kind of returns you expected from your gold investment. If the returns have been achieved, book profits and sit on cash. Wait for new investment alternatives. If you are a die-hard gold fan then wait for better levels to emerge before you can reenter the markets.

Confidence in risk takers:Risk bearers have looked more charged at the state of the US economy ever since the Federal Reserve's calls that it will end its famous quantitative easing program. The US economy has entered a recovering mode and this has lent sharp interest favoring the dollar and a move away from traditional safe haven investments like gold. US equity markets are getting better, indicating that money is now being poured into riskier asset classes and away from bullions that had an extended rally over a decade. The confidence of risk takers means that gold can see some more grim days and prices can correct further. In case you are an investor who is looking for the right time to exit this metal, it is now.Indian gold demand dips:Indian gold demand dipped considerably last year and the measures by the government to bring down gold imports are expected to affect the metal further. Indian gold demand is important not only from a domestic point of view but also from the international angle as the country is the biggest consumer of the metal the world, along with China. In a bid to control current account deficit, the Indian government raised the import duty on gold to 6 per cent. Indian gold demand declined by 12 per cent to 864.2 tonnes in 2012. The demand is expected to remain in this range in the coming year as well on the back of strong measures by the government.

Consumer-end demand is missing:The central banks of Russia and South Korea are still buying gold and improving their reserves, but the fact is that consumer-centric demand in gold is missing. Higher prices have been the sole driver for lower demand of gold by consumers. The Chinese central bank has already indicated that it is in no mood to increase its gold reserves further. In such scenario, buying from Russia and South Korea doesn't seem enough to mitigate the loss of demand from other segments.

Pricing of gold:One reason given at the time of the gold rally was its undervaluation. With the passage of several years of rally on a trot this assumption looks jaded. Compared to other commodities like copper and crude oil, gold looks a bit overvalued. Demand and supply determine the value of a particular commodity, and if the demand is missing then gold is expected to come down to meet the aspirations of the buyers' prices. The purchasing power of consumers and the prices of gold got mismatched after it crossed Rs. 32,000 levels in Indian markets and almost $1,800 per troy ounce levels in international spot markets. The correction in gold prices is necessary to decrease the gap between the two. Therefore, reassessment of a portfolio is not a bad idea for you.

ETFs are selling:#

An investor should always use his rationale in deciding on his portfolio, but that doesn't mean that one can ignore the trend going on in the markets. The trend is that heavy outflows of gold are happening through gold ETFs. The outflows are a sign that the big funds are booking profits in gold as they think that it is the right time to become cash rich. World billionaires like George Soros recently slashed their holdings in gold. Investors should not blindly follow the decisions made by others, but fund selling and trends should not be ignored. Selling in ETFs is due to the confidence in the US economic recovery that once led investments pour into gold at the time of the housing crisis.

COMPANY PROFILEReliance Money Precious Metals Private Limited (RMPM), a Reliance Capital company, offers a range of innovative products and services related to precious metals. The company endeavors to make a paradigm shift in the way people save in precious metals, especially gold, by making it available to a larger set of consumers at convenient price points. The company is registered with leading Gem and Jewellery associations. RMPM products and services are sold under the brand name of Reliance Money. Few details are presented through following queries. Who can apply:Resident individuals including minors ,HUFs and NRI. Minimum subscription amount:Rs. 1000/- and in multiples of Rs. 500/- per month by different modes like cheque,ECS. Tenure Of Plan:12 Months / 24 Months / 36 Months/48 Months /60 Months..15 years with interval of 1 year in between. Gold Grams allotment:A customer puts aside a fixed sum every month chosen at the start of plan and fund from subscriptions will be utilised for the purchase of gold grams over successive 20 business days in equal tranches and Gold micro gram (upto 4 decimal points rounded down ) will be alloted at thebeginningof the day prices declared.Gold price will be declared daily on the website http://mygoldplan.co.inCustomer will have option to purchase additional subscription but additional subscription will not be adjusted against monthly subscription dues. Purity:Gold purity guaranteed at 24 karat/ 99.5% pure. Security:Security trustee are appointed.Accumulated gold is kept in the safe custody with professional custodians in insured professional vaults. Delivery:Delivery of gold to end user under insured mechanism and through coin fulfillment partners or outlets. Premature withdrawal option:Premature withdrawal option is possible after completion of 6 months after paying fine of 2.5% of the accumulated value.Customer can also fulfill the commitment of one year & get rid of exit loads.But remember that output will be only in terms of Gold only.No cash will be refunded. Charges:There is 1.5% administration charge payable for all subscription.If customers do not take delivery within 60 days then safe keeping charges will be applicable thereafterAdditional payment to be made to round off to the nearest incremental 0.5000 grams,coin making charges,VAT,Sales tax. Statement of holding:Statement of holding will be issued only by e-mail on quarterly basis for every quarter ending June,Sept,Dec and March.Hard copy of statement will also sent annually.Users can also extract statement online anytime from the official website of the plan. Comparison Of Reliance My Gold plan Gold Prices with few Banks:Following comparison is as prices on date 24th January 2013:

Reliance My Gold PlanICICIHDFCSBIBOBBOI

GOLD Prices On 24th Jan 2013325936113592329232693283

Reliance My Gold plan prices are seems to be in line with market prices.This plan is different from that offered by jewellers as delivery is possible through gold coins as well gold jewelery and with possible benefit of daily value averaging as well. For which type of individuals Reliance My Gold Plan is suitable?Reliance my Gold plan is suitable is for them who have a need of Physical Gold after certain years like for the purpose of marriage etc.Or any one who want to accumulate Physical Gold. For which types of investors Reliance My Gold Plan is NOT suitable?Physical Gold is generally not for investment purpose.Generally,Gold is never being sold in the market.If any one wish to buy Gold for investment purpose then they may think to invest in Gold ETF , e-gold series of NSEL or Gold Saving mutual funds.where they can book profit after certain appreciation. Is their any chance of default?No.World Gold council is worlds most reputed, non-profit organization works in the area of promotion of Gold.It have much stricter norms and it take care that each & every process is followed strictly.Appointment of IndependentTrustees is also factor to be considered. IDBI Trusteeship Services Limited are security trustees of Reliance My Gold Plan.Security trustees ensure that each & every process is strictly followed.Gold kept in the vaults is insured from the risks like theft etc.Lemuir Secure Logistics is safe keeper of Reliance My Gold plan which is worlds second largest company in this area. Is this plan related to Reliance Mutual Funds?No.Reliance mutual fund & Reliance Money precious metals are both separate entities.Though parentage of both goes to Reliance Capital. What is Unique Selling Point of Reliance My Gold Plan?Reliance my Gold plan have competition against plans offered by jewelers.Daily buying is major unique selling point of this plan.You can ask yourself is it possible to buy systematically monthly / daily basis manually? Answer is No.So this plan offers systematic way of purchasing Gold.Delivery is possible as Gold Coins only through this plan.You can make jewelery any time with your choice of making charges.All over process of Registration is very simple & hassle free. Does this plan offers any Fixed Returns?This is Gold accumulation plan & returns depend on overall fluctuation of Gold prices.

Gold, Gold ETF and Gold FoF December 07, 2012 Gold, Gold ETF and Gold FoF a perspective:Preferred Picks Gold ETFs and Gold FoF:Note: Preferred picks arrived based on traded volumes, tracking error and Corpus. Trailing Returns (%) up to 1 year are absolute and over 1 year are CAGR.Key takeaways: The current uncertainty in global macro economic conditions is likely to keep the gold prices at higher levels going forward, especially in the short term. A slight depreciation in the rupee value will further help to push gold prices up in the domestic front. The fundamental drivers for higher gold prices still remain in place, Investors can consider investing in the above mentioned preferred picks. Investing through staggered investment modes such as SIP and DIY SIP are also preferable. The collective holding by global ETFs in physical gold was at a record high of 2621 tonnes (end Nov 2012), while the holding by Indian ETFs was around 37 tonnes (end Oct 2012). The corpus of Gold FoF grew 20 times (thanks to the SIP facility in Gold FoF) in a span of 18 months to Rs. 4,343 crore in September 2012 from Rs. 212 crore in March 2011. The corpus of Gold ETF grew 16 times in a span of 4 years to Rs. 11,477 crore in October 2012 from Rs. 660 crore in October 2008.Gold, Gold ETF and Gold FoF Retail Research 2. 2I. SIP in Gold:Comparison of SIP and Lump sum investments in Gold & Nifty: The above table portrays the relative performance of Gold and Nifty investments in different investment modes. It is worth noting that the investments in gold in both options whether SIP or lumpsum, managed to yield notable returns compared to the returns from Nifty investments from both modes. The longer the holding period, the better and smoother the returns. Lumpsum returns are better if large sums are invested at periods of market bottoms. SIP returns are better if it is started at or just after the market tops. Further, SIP route helps out to average out the cost of the investment. To conclude, it is advisable to allocate at least 5-10% in gold of anyones total portfolio. The investor may invest either in lumpsum or through SIP/DIYSIP.Gold, Gold ETF and Gold FoF Retail Research

LITRATURE REVIEW"Marketing" is an instructive business domain that serves to inform and educate target markets about the value and competitive advantage of a company and its products. Value is worth derived by the customer from owning and using the product. Competitive Advantage is a depiction that the company or its products are each doing something better than their competition in a way that could benefit the customer. Marketing is focused on the task of conveying pertinent company and product related information to specific customers, and there are a multitude of decisions (strategies) to be made within the marketing domain regarding what information to deliver, how much information to deliver, to whom to deliver, how to deliver, when to deliver, and where to deliver. Once the decisions are made, there are numerous ways (tactics) and processes that could be employed in support of the selected strategies. As Marketing is often misinterpreted as just advertising or sales, Chris Newton, in What is marketing? (Marketing Help Online, 2008), defined marketing as every strategy and decision made in the following twelve areas: Identifying and quantifying the need in the marketplace Identifying and quantifying the target markets Identifying the optimum cost effective media online and offline - to reach the target markets Reviewing the priorities of the product offering in your overall product mix matrix Identifying and developing the most effective distribution channels, be they wholesaler networks, partnering alliances, franchising, or any number of conduits to the market. Testing different ways of packaging the concepts or products to find their most 'easy-to-sell' form Testing to find the optimum pricing strategies Developing effective promotional strategies and effective advertising and supporting collateral, offers, and launch strategies Developing and documenting the sales process Finding the optimum execution of the sales process through testing of selling scripts, people selection, supporting collateral, skills and attitudinal training, tracking, measuring and refining Ensuring that sales projections reflect realistic production capacities Developing nurture programs to optimise the lifetime value of the customer The goal of marketing is to build and maintain a preference for a company and its products within the target markets. The goal of any business is to build mutually profitable and sustainable relationships with its customers. While all business domains are responsible for accomplishing this goal, the marketing domain bears a significant share of the responsibility. Within the larger scope of its definition, marketing is performed through the actions of three coordinated disciplines named: Product Marketing, Corporate Marketing, and Marketing Communications

Two levels of marketingStrategic marketing: attempts to determine how an organization competes against its competitors in a market place. In particular, it aims at generating a competitive advantage relative to its competitors. Operational marketing: executes marketing functions to attract and keep customers and to maximize the value derived for them, as well as to satisfy the customer with prompt services and meeting the customer expectations. Operational Marketing includes the determination of the porter's five forces4 PsIn the early 1960s, Professor Neil Borden at Harvard Business School identified a number of company performance actions that can influence the consumer decision to purchase goods or services. Borden suggested that all those actions of the company represented a Marketing Mix. Professor E. Jerome McCarthy, also at the Harvard Business School in the early 1960s, suggested that the Marketing Mix contained 4 elements: product, price, place and promotion. In popular usage, "marketing" is the promotion of products, especially advertising and branding. However, in professional usage the term has a wider meaning which recognizes that marketing is customer-centered. Products are often developed to meet the desires of groups of customers or even, in some cases, for specific customers. E. Jerome McCarthy divided marketing into four general sets of activities. His typology has become so universally recognized that his four activity sets, the Four Ps, have passed into the language.Product: The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user's needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees, and support. Pricing: This refers to the process of setting a price for a product, including discounts. The price need not be monetary - it can simply be what is exchanged for the product or services, e.g. time, energy, psychology or attention. Promotion: This includes advertising, sales promotion, publicity, and personal selling, branding and refers to the various methods of promoting the product, brand, or company. Placement (or distribution): refers to how the product gets to the customer; for example, point of sale placement or retailing. This fourth P has also sometimes been called Place, referring to the channel by which a product or services is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business people), etc. also referring to how the environment in which the product is sold in can affect sales. These four elements are often referred to as the marketing mix, which a marketer can use to craft a marketing plan. The four Ps model is most useful when marketing low value consumer products. Industrial products, services, high value consumer products require adjustments to this model. Services marketing must account for the unique nature of services. Industrial or B2B marketing must account for the long term contractual agreements that are typical in supply chain transactions. Relationship marketing attempts to do this by looking at marketing from a long term relationship perspective rather than individual transactions.As a counter to this, Morgan, in Riding the Waves of Change (Jossey-Bass, 1988), suggests that one of the greatest limitations of the 4 Ps approach "is that it unconsciously emphasizes the insideout view (looking from the company outwards), whereas the essence of marketing should be the outsidein approach". Nevertheless, the 4 Ps offer a memorable and workable guide to the major categories of marketing activity, as well as a framework within which these can be used.7 PsAs well as the standard four P's (Product, Pricing, Promotion and Place), services marketing calls upon an extra three, totaling seven and known together as the extended marketing mix. These are:People: Any person coming into contact with customers can have an impact on overall satisfaction. Whether as part of a supporting service to a product or involved in a total service, people are particularly important because, in the customer's eyes, they are generally inseparable from the total service . As a result of this, they must be appropriately trained, well motivated and the right type of person. Fellow customers are also sometimes referred to under 'people', as they too can affect the customer's service experience, (e.g., at a sporting event). Process: This is the process(es) involved in providing a service and the behaviour of people, which can be crucial to customer satisfaction. Physical evidence: Unlike a product, a service cannot be experienced before it is delivered, which makes it intangible. This, therefore, means that potential customers could perceive greater risk when deciding whether to use a service. To reduce the feeling of risk, thus improving the chance for success, it is often vital to offer potential customers the chance to see what a service would be like. This is done by providing physical evidence, such as case studies, testimonials or demonstrations.

Personalization: It is here referred customization of products and services through the use of the Internet. Early examples include Dell on-line and Amazon.com, but this concept is further extended with emerging social media and advanced algorithms. Emerging technologies will continue to push this idea forward. Participation: This is to allow the customer to participate in what the brand should stand for; what should be the product directions and even which ads to run. This concept is laying the foundation for disruptive change through democratization of information. Peer-to-Peer: This refers to customer networks and communities where advocacy happens. The historical problem with marketing is that it is interruptive in nature, trying to impose a brand on the customer. This is most apparent in TV advertising. These passive customer bases will ultimately be replaced by the active customer communities. Brand engagement happens within those conversations. P2P is now being referred as Social Computing and is likely to be the most disruptive force in the future of marketing. Predictive modeling: This refers to algorithms that are being successfully applied in marketing problems (both a regression as well as a classification problem).

ProductSteps in product design Design and development of product ideas. Selection of and sifting through product ideas. Design and testing of product concept. Analysis of business instead of product concept. Design and testing of emotional product.

Packaging Requirements of good packaging Functional - effectively contain and protect the contents Provide convenience during distribution, sale, opening, use, reuse, etc. Be environmentally responsible Be cost effective Appropriately designed for target market Eye-catching (particularly for retail/consumer sales) Communicate attributes and recommended use of the product and package Compliant with retailers' requirements Promotes image of enterprise Distinguishable from competitors' products Meet legal requirements for product and packaging Point of difference in service and supply of product. For a perfect product, perfect colour.Forms of packaging Specialty packaging emphasizes the elegant character of the product Packaging for double-use Combination packaging two or more products packaged in the same container Kaleidoscopic packaging packaging changes continually to reflect a series or particular theme Packaging for immediate consumption to be thrown away after use Packaging for resale packed, into appropriate quantities, for the retailer or wholesaler Trademarks Significance of a trademark Distinguishes one company's goods from those of another Serves as advertisement for quality Protects both consumers and manufacturers Used in displays and advertising campaigns Used to market new products BrandsA brand is a name, term, design, symbol, or other feature that distinguishes products and services from competitive offerings. A brand represents the consumers' experience with an organization, product, or service. A brand has also been defined as an identifiable entity that makes a specific promise of value. Co-branding involves marketing activity involving two or more productsPricingPricing refers to the amount of money exchanged for a product. This value is determined by utility to the consumer in terms of money and/or sacrifice that the consumer is prepared to give for it. Increase sales volume Increase revenue Achieve or increase profits Increase or maintain market share Eliminate competition Achieve advantages of mass production Factors influencing price-determination Production and distribution costs Substitute goods available Normal trade practices Fixed prices Reaction of distributors Reaction of consumers Nature of demand: elastic/inelastic Form of market: Perfect competition Monopolistic competition Monopoly Oligopoly Steps to determine price Determine market share to be captured Set up price strategy Estimate demand Evaluate competitors' reactions Channels Manufacturer to consumer (most direct) Manufacturer to wholesaler to retailer to consumer (traditional) Manufacturer to agent to retailer to consumer (current) Manufacturer to agent to wholesaler to retailer to consumer Manufacturer to agent to customer ( ex : DCL,AMWAY ) Manufacturers Reasons for direct selling methods Manufacturer wants to demonstrate goods. Wholesalers, retailers and agents not actively selling. Manufacturer unable to convince wholesalers or retailers to stock product. High profit margin added to goods by wholesalers and retailers. Middlemen unable to transport Reasons for indirect selling methods Manufacturer does not have the financial resources to distribute goods. Distribution channels already established. Manufacturer has no knowledge of efficient distribution. Manufacturer wishes to use capital for further production. Too many consumers in a large area; difficult to reach. Manufacturer does not have a wide assortment of goods to enable efficient marketing. Direct on-selling advantages.

Reasons for using wholesalers Bear risk of selling goods to retailer or consumer Storage space Decrease transport costs Grant credit to retailers Able to sell for the manufacturers Give advice to manufacturers Break down products into smaller quantities Reasons for bypassing wholesalers Limited storage facilities Retailers' preferences Wholesaler cannot promote products successfully Development of wholesalers' own brands Desire for closer market contact Position of power Cost of wholesalers' services Price stabilisation Need for rapid distribution Make more money Ways of bypassing wholesalers Sales offices or branches Mail orders Direct sales to retailers Travelling agents Direct Orders Agents Commission agents work for anyone who needs their services. They do not acquire ownership of goods but receive del credere commission. Selling agents act on an extended contractual basis, selling all of the products of the manufacturer. They have full authority regarding price and terms of sale. Buying agents buy goods on behalf of producers and retailers. They have an expert knowledge of the purchasing function. Brokers specialize in the sale of one specific product. They receive a brokerage. Factory representatives represent more than one manufacturer. They operate within a specific area and sell related lines of goods but have limited authority regarding price and sales terms. Marketing communicationsMarketing communications breaks down the strategies involved with marketing messages into categories based on the goals of each message. There are distinct stages in converting strangers to customers that govern the communication medium that should be used.Advertising

Paid form of public presentation and expressive promotion of ideas Aimed at masses Manufacturer may determine what goes into advertisement Pervasive and impersonal medium Functions and advantages of successful advertising Task of the salesman made easier Forces manufacturer to live up to conveyed image Protects and warns customers against false claims and inferior products Enables manufacturer to mass-produce product Continuous reminder Uninterrupted production a possibility Increases goodwill Raises standards of living (or perceptions thereof) Prices decrease with increased popularity Educates manufacturer and wholesaler about competitors' offerings as well as shortcomings in their own. Objectives Maintain demand for well-known goods Introduce new and unknown goods Increase demand for well-known goods/products/services Requirements of a good advertisement Attract attention (awareness) Stimulate interest Create a desire Bring about action Eight steps in an advertising campaign Market research Setting out aims Budgeting Choice of media (television, newspaper, radio) Choice of actors (New Trend) Design and wording Co-ordination Test results Personal salesOral presentation given by a salesman who approaches individuals or a group of potential customers: Live, interactive relationship Personal interest Attention and response Interesting presentation Sales promotion Short-term incentives to encourage buying of products:An example of this is coupons or a sale. People are given an incentive to buy, but it does not build customer loyalty, nor encourage repeat buys in the future. A major drawback of sales promotion is that it is easily copied by competition. It cannot be used as a sustainable source of differentiation. Marketing Public Relations (MPR) Stimulation of demand through press release giving a favourable report to a product Higher degree of credibility Effectively news Boosts enterprise's image Customer focusMany companies today have a customer focus (or customer orientation). This implies that the company focuses its activities and products on consumer demands. Generally there are three ways of doing this: the customer-driven approach, the sense of identifying market changes and the product innovation approach. In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a market offering, including the nature of the product itself, is driven by the needs of potential consumers. The starting point is always the consumer. The rationale for this approach is that there is no point spending R&D funds developing products that people will not buy. History attests to many products that were commercial failures in spite of being technological breakthroughs.

A formal approach to this customer-focused marketing is known as SIVA Solution, Information, Value, Access). This system is basically the four Ps renamed and reworded to provide a customer focus. The SIVA Model provides a demand/customer centric version alternative to the well-known 4Ps supply side model (product, price, place, promotion) of marketing management.Product -> SolutionPromotion -> InformationPrice -> ValuePlace ->Access

The four elements of the SIVA model are:Solution: How appropriate is the solution to the customer's problem/need? Information: Does the customer know about the solution? If so, how and from whom do they know enough to let them make a buying decision? Value: Does the customer know the value of the transaction, what it will cost, what are the benefits, what might they have to sacrifice, what will be their reward? Access: Where can the customer find the solution? How easily/locally/remotely can they buy it and take delivery? This model was proposed by Chekitan Dev and Don Schultz in the Marketing Management Journal of the American Marketing Association, and presented by them in Market Leader - the journal of the Marketing Society in the India.The use of herd behavior in marketing.The Economist reported a recent conference in Rome on the subject of the simulation of adaptive human behavior.[5] Mechanisms to increase impulse buying and get people "to buy more by playing on the herd instinct" were shared. The basic idea is that people will buy more of products that are seen to be popular, and several feedback mechanisms to get product popularity information to consumers are mentioned, including smart-cart technology and the use of Radio Frequency Identification Tag technology. A "swarm-moves" model was introduced by a Princeton researcher, which is appealing to supermarkets because it can "increase sales without the need to give people discounts." Large retailers Wal-Mart in the United States and Tesco in Britain plan to test the technology in spring 2009. Other recent studies on the "power of social influence" include an "artificial music market in which some 14,000 people downloaded previously unknown songs" (Columbia University, New York); a Japanese chain of convenience stores which orders its products based on "sales data from department stores and research companies;" a Massachusetts company exploiting knowledge of social networking to improve sales; and online retailers who are increasingly informing consumers about "which products are popular with like-minded consumers" (e.g., Amazon, eBay).In early 2003, five engineers from Tata Motors trooped into the main conference room at Bombay House, the Victorian sandstone building that houses the headquarters of the Tata Group. They had been summoned at a days notice from the Tata Motors factory in Pune by company Chairman Ratan N. Tata, who had just made a promise the world said would be impossible to keep.

Classic cars down the years. Top to bottom: Ford Model T(1908), Volkswagen Beetle (1938), Morris Mini Classic (1958), Swatch-Mercedes Smart (1998), Tata Nano (2008) Tata had told a Financial Times correspondent on the sidelines of the Geneva Auto Show that he was thinking of making a car that would cost about 2,000. Adjusted against the then exchange rate of the rupee, that translated to Rs 1 lakh. Tata says he had never really defined the project in his head exclusively by its pricing. "It was the media that said it," says Tata. "But we decided to accept the challenge." With that resolution, Tata imprisoned himself and his engineers in a promise to fulfill which they would have to all but rewrite the principles of automotive engineering.

RESEARCH METHODOLOGY

PROBLEM DEFINITION /HYPOTHESIS /RESEARCH OBJECTIVES

Tanishq emerges as the best known brand with the highest awareness and recall. However Indian customer still prefer to purchase Gold and Diamond to its nearest or dearest retailers/local jewellery shop. Problem for Tanishq that company does not have large presence in the tier 2 and tier 3 city of India, this project will highlight some of the key are where Tanishq remodel its business and also to increase customer satisfaction.

How do consumers talk about the Tanishq products in the market? Which needs are important for the customer branded Vs non branded jwellery. To study customer needs being met by current Tanishq products or not?Secondary Objective Current market structure? Current market trends? Who are the competitors?

LITERATURE RELATED TO THE RESEARCH (IN BRIEF)

Tanishq is India's largest, most desirable and fastest growing jewelry brand in India. Started in 1995, Tanishq is the jewelry business group of Titan Industries Ltd - promoted by the TATA group, India's most respected and widely diversified business conglomerate. This year marks a decade of successful innings for Tanishq. With a retail sales of 1200 crore last year and gunning for 2000 crores this year, Tanishq has arrived in the Indian jewelry market. It is a story of a successful Indian enterprise, which has delivered value to its customers and shareholders in a complex category, marked by its completely localized front end as well as back end. Market research is the process of systematically gathering, recording and analyzing data and information about customers, competitors and the market. Its uses include to help create a business plan, launch a new product or service, fine tune existing products and services, and expand into new markets. Market research can be used to determine which portion of the population will purchase a product/service, based on variables like age, gender, location and income level.

RESEARCH METHODOLOGY

SECONDARY DATA I will collect the Secondary data from following sources:- Newspaper Hindustan Times, Times of India, Economic Times Magazine - The Times. Harvard Business Review, 4Ps Website/Internet from different website, i.e. Reliance Book Course book/ Philip Kotler Notes- Professors Notes/ ICFAI Journal of Brand Management PRIMARY DATA-I will collect the data through structure questionnaire. TOOL USED-Excel sheet, pie chart, and histogramSAMPLING METHODNon-probability convenience sampling SAMPLE SIZE-I will try to collect data from more than 60 customers Target Audience-Prospective jewelry buyer.

DATA ANALYSIS6.1.1 AGE GROUP: TABLE6.1.1Age of BuyerNo of Buyer% of Respond

20-301224%

30-402142%

40-501428%

50-6036%

Total50100%

Chart6.1.1

As per study suggested that 42% of the buyer coming from the age group of 30 to 40 adding to this 28% of the diamond buyer coming from the 40 to 50 age group.

2. ANNUAL INCOME: Annual incomeNo of Buyer% of Buyer

Below 2 lakh00

2-3 lakh714%

3-4 lakh1326%

4-5 lakh1734%

5-6 lakh918%

above 6 lakh48%

Total50100%

Chart 6.1.2

Income group 3 to 5 lakh purchase maximum 34% of diamonds. While it is interesting finding to 34% of the people suggested that there earning would be 4 to 5 lakh.

3. EDUCATION QUALIFICATION:Educational qualificationno of buyer% of Buyer

below 10th standard1020%

10+2 standard1836%

graduate816%

post graduate1428%

Total50100%

Below graduate person purchase more diamonds than the above graduate person, this is also because many business man come to this section it will be significantly high.

Q. 1 : How frequently do you buy? TABLE 6.2.1Buying patternNo. of Buyer% of Buyer

Quarterly00%

Half yearly23%

Yearly1525%

Occasionally4372%

Total60100%

72%Diamonds are mostly purchase occasionally and customer do not purchase regular.

Q. 2: Why do buy?Purpose to buyno of buyer% of Buyer

Self use4073.20%

Gift purpose35.50%

Investment1111.30%

Status symbol00%

Total54100%

73% Customer buys diamonds mostly for self use. And 11% of the people purchasing diamond because of the self investment.

Q. 3: When do you purchases?Buying habitNo. of Buyer% of Buyer

When price goes down2142%

When price goes up00%

When get extra money510%

Marriage season1734%

on festival714%

Total50100%

They mostly when price goes down and on marriage season, this is the one of significance while doing this research because to understand different reason. For example 34% of them are buying diamond because of the marriage season.

Q. 4 : Which diamonds do you prefer? Diamonds nameNo. of Buyer% of Buyer

sapphire1613.10%

Emerald43.20%

Topaz1310.66%

Ruby1915.57%

Coral119.20%

Pearl2520.50%

Diamond3125.40%

Opal32.45%

Total122100%

As per the study suggested that 25% of customer are prefer to purchase Diamond and the 21% of them are purchase pearl.

Q. 5 : Why do you select this particular?Purpose to select particular diamondsNo. of Buyer% of Buyer

Suggested by astrologist3849%

Suggested by friend1317%

Self motive1620.00%

Other1114.00%

Total78100%

Diamond is not only purchased by customer for gift or jewelry in India 49% people purchase diamonds those who are suggested by astrologist which is one of the key area where de bears can work to catch those mass more and more.

Q. 6 : Which factor do you consider while buying? Factor consider while buyingno of buyer% of Buyer

Price3739%

Quality2425%

Brand2830%

Choice66%

Total95100%

Consumer behaviour are mostly influenced by the different parameter for example buying of diamond depends upon the brand which is 30% of customer suggested that 39% of them are suggested that price is the biggest factor to influence his/her buying behaviour.

Q. 7 : If price then which range do like?Price range preferredNo. of buyer% of Buyer

1000-30001122%

3000-60001428%

6000-90001020%

9000-12000816%

12000-15000510%

More than 1500024%

Total50100%

Price range at which diamonds mostly purchase is 3000 to 9000.

Q. 8 : Which specific place do you prefer for purchase? Place prefer to buyingNo. of customer% of Buyer

Mall36%

Branded shop816%

De Beers3978%

Total50100%

Till now 38% people purchase diamond from De beers adding to this 56% of them are purchase from the branded shop.

Q. 9 : Why this particular place?Reason to select particular placeNo. of customer% of Buyer

Quality4375.40%

Customer relation47%

Convent location814%

Brand loyalty23.60%

Price00%

Total57100%

As per our study revelled that de beers liked by customer because of the high quality product offering by the company, 4% of the customer liked de beers because of the customer relation done by the company.

RECOMMENDATION Most of the consumers to select jewellery shop based on the quality assurance of product given by retailers. Only higher- end consumers are purchasing jewellery in jewellery specialty and organized retailers. Most of the middle class and upper middle class people purchase jewellery from family retailers. The most important promotional tool for jewellery retailers are T.V media & newspapers. Word of mouth concept followed by traditional families and some of the youngsters influenced by their friends. The main motivating factor of South Indian consumers are purchase jewellery for wedding/engagement. Most frequently purchased product is ring. The most people choose traditional gold smith because the retail show room now only entire the market so people are would like traditional gold smith.

CONCLUSIONReliance Gold Savings Fund, is the first gold fund of fund in the industry which opens a new avenue for investing in gold as an asset class. The fund seeks to provide returns of gold through investments in Reliance Gold Exchange Traded Fund, which in turn invest in physical gold. It enables you to reap the returns of gold in a paper form without the need of a demat account. It is a passively managed fund which would enable an investor to save for gold in a convenient manner either through lump sum investment or through systematic investment - the mutual fund way from a long term perspective. It aims to give investors the opportunity to participate in the bullion market in a relatively cost effective and convenient way as you can directly purchase and sell the units at the AMC."Due to the current economic downturn and inflationary fears, gold is doing well," says Keyur Shah, associate director, World Gold Council, India. Gold has been rising over the past one year and experts feel the trend will continue . Some analysts expect the average gold price to hover around Rs 14,000 (per 10 gram) by December 2008. Considering that gold prices are fluctuating between Rs 12,500 and Rs 13,000 of late (after touching the high of Rs 13,680 on July 15), there is still some upside. "A weak dollar following a slowdown in the US will definitely boost the value of gold even further," says Kartik Jhaveri, director , Transcend India.

Bibliography

Gupta L.C, Indian share owners: A survey, Society for Capital Market Research and development, 1991, p.92. Shah Ajay and Thomas Susan, Performance Evaluation of Professional Portfolio Management in India, Center for Monitoring Indian Economy, (working paper) April, 1994. Jack L. Treynor, How to rate Management of Investment Funds, Harvard Business Review, 43, No.1, (January-February, 1965), pp. 63-75. William F. Sharpe, Mutual Fund Performance, Journal of Business, 39, No.1, (January 1966), pp. 119-138. Sharpe W.F, A simplified Model for Portfolio Analysis, Management science 9. (January 1963), pp.277-293.