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Signet Group Competes In The Business Plan

Samuel, Marks & Morgan, and a variety of other regional names. For the most part, Signet stores compete in the same middle mass market segment, with some brands such as Ernest Jones competing in the upper middle market. Most consumers buy jewelry as an expression of love, making it a relatively discretionary purchase. Only the wedding and gift-giving segments are considered by the company to be non-discretionary, although consumers may choose to purchase non-jewelry gifts in tighter economic times. Consumers in this segment focus their buying on the holiday season, which accounts for 40% of annual sales. Nearly half of all consumers buy on credit. Signet operates in own credit, rather that working through a third party. Credit and selling policies are roughly in line with those of the competition. With regard to promotion, Signet is able to leverage its size to use national advertising campaigns for its national brands. This includes television advertising for Jared and Kay. The company also utilizes a marketing database to help implement customer relationship marketing strategies. Signet outspends its competitors on advertising (2009 Form 20-F). Signet also focuses on the merchandising function, to ensure that product mix at its stores is consistent with the local purchasing trends and to ensure that product is available within 24 hours.

D. Approximately half of the U.S. adult population purchases jewelry in a given year. There are a couple of major demographic groups that are targeted by Signet. The most important group is comprised of relatively wealthy, older, Caucasian women. This group purchases for themselves and views jewelry as both a symbol of status and of beauty. Another key group targeted by the industry is men, who are buying for women. This is included but is not confined to the engagement and anniversary ring markets. Customers are focused more on quality and design in their purchasing decisions, with price often being a secondary or tertiary consideration. Price-conscious consumers avoid specialty jewelry retailers and shop at discounters such as Wal-Mart. Trust in the sales staff and the store is an important consideration. Jewelry is not typically an impulse purchase, although there is an element of that with women's jewelry. Almost half of purchases are done on credit. Marketing is focused on driving...

This emphasizes the gift-giving/romance component of jewelry purchases. Signet spends more on marketing than any of their competitors and has superior advertising impressions to show for it.
E. Signet covers most of the market at the middle and upper mass market, and ventures occasionally into the high end of the jewelry market. This approach follows on the abandonment of the low end in the 1990s. For the most part, pieces have low customization, and a wide range of pieces are offered throughout the Signet family. The company places emphasis on service and delivery knowing that trust is an important factor in the buying decision. Signet's logistics investments allow it to deliver pieces within 24 hours to its stores when needed. The company's performance is comparable to its competition. There is little evidence that Signet outperforms other specialty jewelers, but in general they outperform the discounters. All firms in the industry have undergone similar revenue fluctuations in recent years, indicating a similar standard of performance.

Signet continually introduces new designs, but the rate of innovation in the industry is low. Jewelry firms market a product that is viewed as being timeless, rather than innovative. One exception is the Leslie Davis brand, which has a more fashion-forward focus than other Signet stores. Signet is committed to relationship building, and therefore places emphasis on after-sales service as an element of its marketing strategy.

Works Cited:

Signet Jewelers Ltd. Form 20-F. Retrieved March 6, 2010 from http://www.signetjewelers.com/sj/uploads/dlibrary/documents/Form20F2008.pdf

No author. (2006). The U.S. jewelry retail industry generates annual revenues of about $44 billion. Business Wire. Retrieved March 6, 2010 from http://www.allbusiness.com/company-activities-management/sales-selling-sales-figures/5464928-1.html

No author. (2010). Signet Group PLC MSN Moneycentral. Retrieved March 6, 2010 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=U.S.%3aSIG

Ratner, G. (2007). It still hurts 16-year on. Times Online. Retrieved March 6, 2010 from http://entertainment.timesonline.co.uk/tol/arts_and_entertainment/books/book_extracts/article2701311.ece

Sources used in this document:
Works Cited:

Signet Jewelers Ltd. Form 20-F. Retrieved March 6, 2010 from http://www.signetjewelers.com/sj/uploads/dlibrary/documents/Form20F2008.pdf

No author. (2006). The U.S. jewelry retail industry generates annual revenues of about $44 billion. Business Wire. Retrieved March 6, 2010 from http://www.allbusiness.com/company-activities-management/sales-selling-sales-figures/5464928-1.html

No author. (2010). Signet Group PLC MSN Moneycentral. Retrieved March 6, 2010 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=U.S.%3aSIG

Ratner, G. (2007). It still hurts 16-year on. Times Online. Retrieved March 6, 2010 from http://entertainment.timesonline.co.uk/tol/arts_and_entertainment/books/book_extracts/article2701311.ece
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