Challenge:
Who constitutes Jewelers of America, and what drives their pursuit of market research? The jewelry sector finds itself in need of strategic repositioning amidst a swiftly transforming market landscape. Facing a plateau in sales, the fine jewelry industry seeks avenues for sustainable growth. Established in 1906, Jewelers of America (JA) stands as a non-profit trade organization committed to advancing professionalism and ethical standards within the jewelry trade. Presently, the association strives to bolster consumer confidence through active engagement in public, governmental, and industry realms. Additionally, it endeavors to augment consumer outreach and public relations endeavors.
Goals:
Jewelers of America enlisted Cognitive Market Research to execute market research with the following objectives:
- Secure endorsement from association members
- Gain insights into the target audience of the members
- Direct the strategic formulation of a nationwide advertising initiative
Solution:
Cognitive Market Research devised a comprehensive three-phase research strategy:
During the initial phase, Cognitive Market Research crafted a 10-minute online survey with open-ended questions to extract valuable insights from association members. This phase yielded an in-depth comprehension of trends, purchasing behaviors, and customer perspectives from 257 association members. The data gathered from this phase aided in refining the consumer survey and illuminating industry trends.
Moving to the second phase, research focused on analyzing purchasing behaviors, attitudes, and interests within the fine jewelry and luxury sector. This phase aimed to identify the demographics with the highest inclination towards purchasing jewelry and to delineate the size of each segment. A twenty-minute online survey was administered to 2,019 high-net-worth individuals.
Employing advanced analytics, Cognitive Market Research segmented the data to identify the primary consumers of fine jewelry. Supplementary research was conducted to further develop personas based on the segments derived from quantitative analysis.
The results revealed two primary target consumer groups: the "jewelry enthusiast," typically a married woman in her 30s with children and a household income exceeding $100,000, and the "young and indifferent," typically a single woman in her 20s with no children and a household income below $100,000. Both demographics predominantly reside in urban and suburban areas, consume television, and actively engage in social media. The former accounts for approximately 8% of the U.S. population, roughly 25 million individuals, while the latter comprises about 11% of the U.S. population, approximately 35 million people.
In the third phase, Cognitive Market Research compiled the findings into a video presentation for Jewelers of America. This video serves as an internal promotional tool, aiming to generate enthusiasm for the upcoming advertising campaign and to facilitate fundraising efforts.
Results:
Jewelers of America successfully raised funds and crafted an upcoming ad campaign for 2020. The advertising firm engaged by Jewelers of America utilized the research findings shape the campaign, effectively targeting the recommended segments.