Maximising Success through Research

Solitaire got an opportunity to catch up with Soowon Magyar, who drives the planning and research function at the DTC. In an industry where information is difficult to obtain, but of vital importance to develop and enlarge the demand for diamond jewellery, the DTC is one of the few organisations that consistently tracks the markets.

Soowon Magyar, head of research and planning at the DTC

One of the foremost objectives of the DTC is the creation of demand for diamond jewellery. The first step in achieving this is to know who and where the consumer is, and this is where the DTC's Planning and Research Group plays a pivotal role. The information it collects provides the basis for strategic planning by the DTC and its sightholders. "Research minimises the risk of launching a jewellery brand or a marketing initiative, and maximizes the chances of success," says Magyar, underlining the importance of this function.

DTC Research is divided into two broad streams - at the consumer level and in the supply chain area. "We try to follow trends in the pipeline from the time a diamond enters a country (for example, as rough in India or as polished imports into Japan) until the time a customer leaves the store with it," stated Magyar. The research also delves into the area of consumer confidence, tracking public perception on issues that have a bearing on the diamond reputation.

While the research function is headquartered in London, Magyar and her team track,15 markets around the world. The DTC partners with international research agencies, ensuring that standardised best practices and techniques are followed across the regions. "We sit at both ends of the research," Magyar explained. "At the front end the DTC team briefs the research agencies and ensures that we obtain the right deliverables. At the end of the research programme, it is our responsibility to analyse the findings and draw the right implications." While the DTC allocated $190 million to its global marketing budget in 2005, around $8 million was spent on research studies.

The DTC's research focus changed about four years ago, which was when Magyar took over the responsibility. "Previously, most of the research was to do with communications planning. But with the Supplier of Choice (SOC) programme we needed more information to help the supply chain understand and grow the demand for diamond jewellery in various key markets," she said. Since SOC was introduced, there has been greater emphasis on adding value through the DTC sightholder network. In fact, while previously the DTC's marketing support was mostly targeted to the consumer, now it is increasingly slanted towards the B2B model.

Soowon Magyar confers with colleague Srinivas Madani

The information from the research is provided to the sightholders to assist them in drawing up marketing programmes. These 'business initiatives' are screened by the DTC against objective criteria to evaluate, among other things, their viability and ability to generate market growth. If a 'business initiative' qualifies for DTC marketing support, the sightholder is entitled to receive additional information and research to maximise the chance of success. They can be specific about additional information required. Thus far, sightholders have not been charged for the research because it is part of the DTC's free Growth Services under the Value Added Services initiative.

In India, DTC research undertakes extensive quantitative and qualitative studies, some using sample sizes of up to 90,000. This huge investment is required on account of the diversity and regional spread of the Indian consumer. The studies are mostly conducted in the ten largest Indian cities which account for around 80 per cent of the diamond jewellery demand. The results provide information not only on consumer demographics and buying patterns, but also insights into consumer motivation factors or need states - an essential input to effectively market diamond jewellery. For example, research has identified the key drivers of diamond jewellery acquisition in India. Such drivers are often about personal stature and identity, the acknowledgement of a partner's worth in a special relationship, a celebration of personal milestones and achievements, and a sense of self-worth.

The DTC research team also studies the supply landscape in the key diamond jewellery markets, analysing which parts of the pipeline appear to be growing and adding value to the diamond product. Concluded Magyar, "One of our goals is to drive demand for diamond jewellery by identifying where we feel value might be added in the pipeline. We then seek to offer services to support the achievement of this value, which benefits those clients and the consumer. This is important not just because competition in the luxury segment is growing, but also because - given the issues the industry currently faces - there is a need for increased consumer awareness and confidence in diamond jewellery."