CaratLane Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of CaratLane through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
CaratLane Product Strategy:
CaratLane is a leading ecommerce platform which focuses on precious items of jewellery. CaratLane offers a platform for buyers to buy from a variety of product offerings. The main product strategy in its marketing mix is to provide jewellery products on its website & app for users to select and buy, which are then shipped to them. Some of the product items available on CaratLane are:
• RINGS
• EARRINGS
• PENDANTS
• CHAINS AND NECKLACES
• BANGLES AND BRACELETS
• JEWELLERY SETS
• MEN'S JEWELLERY
• KIDS JEWELLERY
• DIAMOND JEWELLERY
• SOLITAIRE JEWELLERY
• GEMSTONE JEWELLERY
• PLATINUM JEWELLERY
CaratLane also provide loose diamonds and design your own jewellery options where you can customise your own jewellery as per your choice with various available options. They have a large collection of over 125000 diamonds of different colour, cut, clarity and carat. All the diamonds at CaratLane are certified by laboratories such as HRD, GIA, GSI and IGI.
Image: company website
This concludes the product strategy in CaratLane marketing mix & strategy.
CaratLane Price/Pricing Strategy:
Below is the pricing strategy in CaratLane marketing mix strategy:
CaratLane business model they follow provides them an opportunity provide their jewellery at around 20% below market retail prices. They purchase diamonds as per the demand of orders and then manufacture their own jewellery, hence have low inventory carrying cost while the online model helps to keep overhead costs low.
Also, CaratLane buy diamonds directly from over 4000 diamond vendors across the world which helps in saving the money spent on intermediaries. They also provide various price discounts on diamonds as well as jewelleries which are on sale.
CaratLane Place & Distribution Strategy:
Following is the distribution strategy in the CaratLane marketing mix:
CaratLane have a network of around 4000 global vendors. Their supply chain covers more than 150 cities across India. They have stores in Bengaluru, Delhi/NCR, Hyderabad, Coimbatore, Chandigarh, Chennai, Thane. Being a website, CaratLane can be accessed anywhere and anytime, which shows its strong place strategy.
Moreover the website is accessible from anywhere across the world and the products can be viewed globally.
CaratLane Promotion & Advertising Strategy:
The promotional and advertising strategy in the CaratLane marketing mix is as follows:
CaratLane provide various price promotions like Solitaire Price Challenge where they claim that the price they provide for solitaire jewellery is best in the market and if someone could find a similar piece of jewellery at a lower price anywhere else then they would compensate the customer with the price difference. CaratLane also provide diamond education to the customers on their website where they mention details about the cut, colour, certification, clarity, carat etc which helps the customer to make an informed decision. They also follow the lowest price challenge on the BIS Hallmarked Gold coins. CaratLane provide tamper proof packaging and free insurance to earn trust of their consumers. They pioneered a Try At Home programme where they send samples of jewellery free of cost to the customer’s home for them to try before buying. They also have a 3D virtual jewellery try on app which uses face recognition and VR technologies to let the customer try their jewelleries in a virtual simulation. CaratLane also have 30 day free return and lifetime exchange options. They also provide consultants to help guide the customers in their diamond purchase. They follow social network promotions and have ads which portray female friends buying CaratLane products as a gift for each other on different occasions like Diwali and Valentine’s Day. They target modern day working independent women who like to wear light classy jewellery.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of CaratLane.
People:
Mithun Sacheti is the founder and CEO of CaratLane. He has been working in the jewellery industry for more than 17 years before starting CaratLane. He is a certified gemmologist from the Gemmological Institute of America. He wanted to make jewellery accessible and affordable by all and hence started the CaratLane. Srinivasa Gopalan is one of the co-founders who played a pivotal role in establishing the online portal. Avnish Anand with over 14 years of experience in the industry is in charge of sales and digital marketing.
Process:
CaratLane are a very customer focussed company and pioneered Try At Home system for jewellery in order to make it convenient for the customers to trust and buy their jewellery. They have a robust IT platform that supports their online selling portal. CaratLane make sure to deal with only conflict free diamonds. The basic process is to browse the website, select product, make an online payment, and the delivery is done on the doorstep.
Physical Evidence:
CaratLane have a beautiful purple logo showing the shiny cut faces of a diamond which helps one to identify with the brand. The few retail outlets that they have in different cities takes care to showcase their unique designs in a well-lit glass display which adds to the brand value and attracts the customers more. The website of CaratLane is its biggest physical evidence as it the customer interface. The packaging also is a part of the physical presence. Hence this concludes the marketing mix of CaratLane.
About CaratLane:
CaratLane is an Indian e-commerce player in the field of diamond jewellery. It was started in 2008 by Mithun Sacheti who was a jewellery retailer and Srinivasa Gopalan who worked in the field if IT. It also has a few physical stores. Tiger Global is one of its largest investors. The demand for jewellery increases during the Diwali and other festive seasons. Most of the world’s rough diamonds are cut and polished in India. This provides an opportunity for CaratLane to source its raw materials with ease. As US is the world’s largest diamond jewellery market in the world, it provides future expansion opportunities for CaratLane. It would also make significant contribution to India’s foreign reserves. The net jewellery and gems export of India has grown at a CAGR of 7% from 2005 to 2017 which show a bright future for CaratLane. The Govt.
of India allows 100% FDI in this sector which could attract foreign players for future investments. This is also supported by availability of cheap skilled labour in our country.
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