Assignment 1: Preliminary Product Screening Report

PRELIMINARY PRODUCT SCREENING REPORT: OPAL JEWELRY 16/08/2012 Assignment one. EXECUTIVE SUMMARY: Gems and jewelry play a significant role in Australian customs and traditions, making this sector integral to the economy and one of the fastest growing industries in the country. Precious opal ranks with diamond, as one of the most valuable of gemstones. Opal jewelry can have a big variation on their values, opals materials to make those jewelries can start at AUD$1. 00 per carat and go to AUD$20,000. 00 per carat. Apart from Australia and Slovakia the only other countries with a significant production of opal jewelry have been Mexico and Brazil.Australian opal jewelry can be a sound long-term investment, with value appreciation climbing yearly. Weakness: Australia does not invest in overseas marketing for jewelry, if the country started investing on that, opportunities would came, building up the opal market overseas Australians have the opals as old-fashioned jewelry; they should be re -educated about that. Compliance: Intellectual property (IP) is an essential tool to protect your ideas and the work you generate as a designer in the fashion industry.It’s also one of the essential building blocks of Australia’s economy, because it helps foster creativity and reward innovation. TABLE OF CONTENTS: Executive summary: †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Page: 2 Introduction: †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Page: 4 Research Findings: †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Page: 5 Analysis and Conclusions: †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Page: 12 Opal types: †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Page: 13 INTRODUCTION: Since the l ast century, Australia has been the prime producer of gem opal in the world. Now a day, Australia exports over 90 per cent of natural opal, making a significant contribution to Australia's economy.The infinite variety of color and pattern makes opal a very special stone. Opal is unique in that the stone changes color when it is rocked back and forth or when it moves on the neck so mounting it in Australian opal jewelry displays the rock in the very best setting. The task for this assignment 1 in certificate IV international trade was to undertake preliminary screening of an Australian product. The task was to choose and research an Australian product made in Australia from mostly Australian resources that we wish to market internationally.Once the product was selected we were then asked to perform a research using primary and secondary resources for our research. To be Included in this research are vital pieces of information such as price, product, promotion and place, consumers of the product, competitors in the industry and the product cycle of our product. Through this preliminary research we will be able to gain an idea of whether or not exporting our chosen product will be a successful venture or whether there will be risks involved. The Australian product I have chosen is Opal Jewelry. RESEARCH FINDINGS:PRODUCT DESCRIPTION: There are more then 19 mines situated all over Australia. New south Wales, for example, is famous for your black opals. This state has the largest proportion of Australian Opals in term of value. There we can find two mines: Lightning Ridge and White Cliffs. Queensland produces Boulder Opal, which is a unique type of opal and is found attached to a host rock, ironstone. Only Queensland have the Boulder opal, and is found in deposits in weathered  sedimentary Cretaceous rocks in the west of the state. This state have four mines, which are: Quilpe, Winton, Opalton and Yoah.South Australia has four active opal mining fields, Andamooka , Coober Pedy, Lambina and Mintabie. South Australia is largest producer of opal in terms of volume, and produces the white opal, crystal opal or ‘milky' type of opal. Source: http://www. costellos. com. au/opals/types. html This research is based in a business operated in Queensland, having as a main product Boulder opal. Although, the company also sells all types of opals jewelry, rings, pendants, earrings, beads, and watches. (BUSINESS LOGO. ) Source: http://www. opalsdownunder. com. au/Images source: http://www. opalsdownunder. com. au/opal-pendants/ COSTUMERS DETAILS: The opal jewelry Is displayed in the full gamut of jewelry settings: rings, earrings, pendants, brooches, bracelets, studs, cufflinks and other type of jewelry to suit every occasion and budget. You can even have custom-made opal jewelry for your engagement ring or for any other appropriate gift-giving occasion. Or maybe you just want to spoil yourself. As the price of the jewelry made with opals varies grea tly, consumers may also vary according to the price of the product.There are jewelries made of opal, which are for tourists, with a lower cost. Others, such as black opal, which has great value, are for higher-class consumers, who admire and do not save money to buy a good jewelry. Source: â€Å"Laszlo’s opal and jewelry†, 2001-2010, viewed 10 august 2012, http://www. opal-jewelry. com/about. htm RETAIL INFORMATION: Opals are very common Jewelry in Australia. The ones made for tourists are usually sold in local markets, with a lower cost. But, we also find Opals in famous jewelry stores with a higher value.Web sites such as e-bay, or even jewelry websites made just to sell them. There are a huge variety of them, offering all forms of payment. On this company, for example the website shows some of the most important currencies that may be interested to buy their products. All the prices are showed in Australian dollars, with their currency conversion below the pictures to make it easier for the costumers to think how much does the jewelry costs in their own country. At the moment the product is only sold domestically within Australia in their store, Situated on the Bruce Highway on sunshine coast.Also, this product it is predominantly sold online at its website http://www. opalsdownunder. com. au, here the customers can browse through the available products on offer and place an online order. Once they have chosen, they can then add the product to their online cart and proceed to pay. The payment method is Credit Card or Debit MasterCard/ Visas, there is also the option to pay by PayPal. On this company, for example, the website shows some of the most important currencies that may be interested to buy their products.All the prices are showed in Australian dollars, with their currency conversion below the pictures to make it easier for the costumers to think how much does the jewelry costs in their own country, followed by the payment methods. Sou rce: https://www. opalsdownunder. com. au/cart PRICE DETAILS: The color, size and type of precious opal are factors that determine the price paid for the gemstone. Usually the price is based on the quality of the opal and expressed per carat. Furthermore, there is a marked difference between the value of uncut opal compared with the value of cut and polished opal.Like anything, marketing has a great impact on determining the value of a product. Opals are as unique and individual as the people who buy them. And a personal taste and preference can also affect the price this product. Another issue is that the different colors and patterns can appeal to different markets. Although, you can have material that can start at AUD$1. 00 per carat and go to AUD$20, 000. 00 per carat. One big influence when we talk about Opal values is the Opal tone: it refers to the background or the ‘underlying color' of the opal, which ranges from black through dark to light.Generally opals with a blac k or dark body tone are more valuable than those with a white, light, or crystal body tone, because a stone with a darker body tone tends to display colors more vibrantly. Black opals are the most prized opal and may realize prices over AUD $15,000 a carat. Opal Jewelry can also vary between the products, one simple opal pendent for example, starts with AUD 136, 00, but an opal ring costs around AUD 230. 00. As was mentioned before, we can also find in the market more affordable opal jewelry, but usually, they are not made with gold, or silver or valuable materials.SOURCE: http://www. opalsdownunder. com. au COMPETITORS: Apart from Australia and Slovakia the only other countries with a significant production of opal jewelry have been Mexico and Brazil. There are a few other countries, which have small occurrences of precious opal, usually from volcanic rocks, but these have met with little commercial success. Another very valuable stone and well regarded by consumers, the diamond, i s also seen as a competitor. Although, diamonds do not have the range of prices and types of productions that have opals.A top quality black opal can influence in the price, giving a higher price per carat than a good, clear one-carat diamond. Very different to to the diamond industry, there is no monopoly in the world marketing of opal and true market forces of supply and demand determine price. Another difference is that, opals have a wide range of values, which can satisfy a greater number of consumers, becoming a popular stone. And that do not happen with Diamonds. Apart of those countries, and the diamond, other mines in Australia are the biggest competitor that Opals Down Under have.With the websites facilities, the mines also sells the product for another countries, or domestically, for Australians. SOURCE: â€Å"Mining and Gems Global Industry†, 2008, viewed 10 august 2012, ;http://web. ebscohost. com/ehost/pdfviewer/pdfviewer? sid=c49106d4-941d-433b-9f22-8f7280b7d19b %40sessionmgr104;vid=14;hid=125; PRODUCT LIFE CYCLE: Australian opal can be a sound long-term investment, with value appreciation climbing yearly. Australian fields are slowly running down, so the values on quality gems will regularly increase year by year.For the overseas investor, it is easier to buy at the source of supply and save money. â€Å"COOBER Pedy's colourful opal mining industry is falling victim to the state's mining boom†. [ABSTRACT FROM PUBLISHER], viewed in 10 august 2012, ;http://web. ebscohost. com/ehost/detail? vid=3;hid=125;sid=bd0f4262-c765-4e52-b405-3b86c70d60ac%40sessionmgr112;bdata=JkF1dGhUeXBlPWNvb2tpZSxpcCx1cmwsY3BpZCZjdXN0aWQ9czEyNDE5NzEmc2l0ZT1laG9zdC1saXZl#db=anh;AN=201206091017391615; PROMOTION: Nationally, this company uses newspaper, magazines and sales to promote their sales.But also, a way that they use to promote is from Internet. Their website is a good way to promote their products and their store, but to promote their websites, coupons a re also showed in on-line magazines, giving the costumers discounts of this product, and giving the costumers an opportunity to have a look on their websites: source: http://saltmagazine. com. au/articles/web-exclusives/pepper-march-spa-restaurants-events. aspx WEAKNESS OF THE PRODUCT: Even with so many good things to talk about the market for jewelry opals, we also have to look at his weak side.One way Australian opal could further its reach would be through aggressive strategies of marketing. Australia spends almost to nothing with the promotion of opal overseas or even with in his own country. For example, last year, a South African diamond mining company called De Beers, spent around AUS$150million in Japan marketing diamond engagement rings, as opposed to Australia which, in the same year, spent AUD$100,000. 00 in all the promotion of opal overseas. Australia could make more marketing campaigns about opals, and that would increase the demand.Another weaknesses of the market is that, according to opal retailer Con Retsas, if we educate Australians about opal that could be the first step towards telling the world about the gem and build up its global reach. He said that â€Å"Many Australians perceive opal jewelry as old fashioned, something that Grandma wore. † But if you compare an opal to a diamond, even a lower grade opal can be really interesting and beautiful to look at as opposed to a poor diamond, which is nothing flash or colorful as the opals. Source: â€Å"The Gemmological Association of Australia (GAA)†, C 2012, viewed 10 August 2012, ;www. gem. rg. au ;. COMPLIANCE WITH THE LAW: About IP Australia: IP Australia is the Australian Government agency responsible for administering patent, design, trademark and plant breeder’s rights. By granting these rights, and contributing to the improvement of Australian and international IP systems, IP Australia is supporting Australia’s economic development. Intellectual property (I P) is an essential tool to protect your ideas and the work you generate as a designer in the fashion industry. It’s also one of the essential building blocks of Australia’s economy, because it helps foster creativity and reward innovation.Australia’s IP laws provide a legal framework to protect your innovative and creative ideas and designs. Legally enforceable IP rights encourage technological innovation and artistic expression in industries, such as fashion and design, and help to build and expand businesses, create new jobs and stimulate the sector both in Australia and overseas. Source: http://www. ipfashionrules. gov. au/ Conclusion: Today, the Australian opal jewelry industry is made up of a large number of individual companies generally working their own claims.A single opal field is explored and developed by several hundred individual miners, making the jewelry market develop, and have a huge quantity of competitors. Historically, the continued developme nt of the industry has relied upon chance discovery. Other than putting more funds into marketing Australian opal jewelry, I believe that display stores around the world, representing Australian opal jewelry as a product rather than individual jewelry businesses would be a start in the global promotion of Australian opal jewelry.With this promotion nice quality of jewelry as artistic designed pieces, could make the market reach the status it deserves. This industry is young, and Australia has much to do in order to promote the jewelry industry to its biggest potential. Yet, with industry perseverance, opal jewelry will be soon recognized by the world, for the art it is. Opal jewelry is a great gift, or souvenir that represents Australia, making this industry have a large number of types of consumers.To conclude, In my opinion, Australia has reached his national target with the opal jewelry market, and now is ready to export this amazing art and show the world not just the beauty of the rings, watches, pendants, but a little bit of his culture as well. Australian opals jewelry has the best quality, design and also the biggest resources making opals jewelry an easier market to export. Type of opals: Boulder opal is also classified as solid opal.It is a variety of precious opal that has the host rock forming naturally as part of the gem. This type of opal is often cut with the ironstone left on the back, as the opal often just a thin vein of precious opal is present. The opal forms within the cavities of the boulders in both vertical and horizontal cracks. Boulder opal can be found in many different shapes and sizes, from as small as a pea, to as big as a family car which can also be black or light depending on the appearance of the stone when viewed from the surface.Black/Dark Opal Black Opal is easily distinguished by the blackness of the background â€Å"body tone† or body color, which shows a play of color within or on a black/dark body tone, when view ed from the face up. The term ‘black opal' does not mean that the stone is completely black, some of them have a light crystal color bar, giving the otherwise light opal a dark appearance. Even expensive black/dark opals may have only a very thin color bar. Light/Crystal OpalCrystal Opal has a transparent, translucent, or semi-translucent body, which is also referred to as the â€Å"diaphaneity† of a stone. Crystal opals can display any color of the spectrum in a beautiful play of color because they are cut with a high cabochon. The translucence of a crystal opal often gives it clarity and vibrancy of color and may be transparent through to nearly opaque, although it usually has a light body tone or white body color. Source: â€Å"King opal†, 2009, viewed 10 august 2012, ;http://www. kingopal. com. au/types-of-opal. php;