Platinum Guild International - USA C O N S U M E R P R E D I S P O S I T I O N T O P L AT I N U M , A P R I L

Objectives of the research

2

•  Understanding attitudes and behaviour in the jewelry category

•  How strong is Platinum’s saliency and familiarity compared to other metals?

•  What do consumers know about Platinum?

•  What is the consumers’ pre-disposition towards Platinum and other metals?

•  What are the key drivers of consumer predisposition in metals?

•  How is Platinum positioned against these and what are the opportunities?

•  What is the impact of Platinum marketing?

Sample and methodology – looking at the broader ‘pre-bridal’ target audience and focusing in on owners

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Women aged 25-34, annual household income of over $55k

WHO? Main: In a serious relationship and would consider

getting engaged in the next 12 months 433 sample size

Boost 1: Acquirers. Acquired an engagement ring in the last 2 years (engaged or married)

Boost 2: Platinum Acquirers. Acquired a Platinum engagement ring in the last 2 years

WHERE? Nationally representative quotas on West, Midwest, South, North East

METHODOLOGY Online Interviewing

QUESTIONNAIRE LENGTH 20 MINUTES

WHEN? 22nd January – 13th February 2014

Understanding attitudes and behaviour in the jewelry category

When considering the metals available for jewelry, the vast majority appreciate they have different things to offer – metal matters

Difference of metals to one another

BD5. Which of these statements best describes how different metals are? Base: Total Sample (433) 5

9 1

58

31 Very different

Quite different

Similar to one another

Mean score (+4 to +1) 3.20

All the same

How strong is Platinum’s saliency and familiarity compared to other metals?

A good level of spontaneous awareness of Platinum considering market share

BE1. What metals have you heard of? Base: Total Sample (433)

Spontaneous Awareness: Total Mention

78 76

73 50

31 20 19

13 9

7 7 6 6 5

3 2 1 1

Gold Platinum

Silver White gold

Titanium Sterling silver

Other gold (e.g. Rose gold) Yellow gold

Copper Nickel

Tungsten Stainless steel

Bronze Palladium

Brass Rhodium

Pink gold/colour gold Pure gold

7

Among this younger ‘pre-bridal’ audience, Platinum acquisition is relatively low, but a quarter do claim to have already acquired Platinum

BE2A. How familiar are you with each of these metals used in jewellery? QCUSTOM4. Have you ever bought or been given any of the following jewellery? QCUSTOM5x. And which of these did you buy or receive in the last year? BE2B. When you last bought or received jewellery that was made from metal, which metal was it made from? Base: Total Sample (433)

8

AWARENESS

EVER ACQUIRED

LAST 2 YEARS ACQUISITION

BOUGHT LAST

100

81

44

26

WHITE GOLD

98

87

28

14

YELLOW GOLD

+5 or greater vs. Category average

-5 or greater vs. Category average

81% 89%

55% 33%

59% 50%

84

43

20

12

52%

47%

60%

65

19

8

4

PINK GOLD

95

61

23

10

STAINLESS STEEL

30%

43%

50%

65%

38%

44%

Familiarity

Gifting is the most common form of acquisition, with earrings and necklaces being the usual formats

BE2A. How familiar are you with each of these metals used in jewellery? QCUSTOM4. Have you ever bought or been given any of the following jewellery? QCUSTOM5x. And which of these did you buy or receive in the last year? BE2B. When you last bought or received jewellery that was made from metal, which metal was it made from? Base: Total Sample (433)

9

AWARENESS

EVER ACQUIRED

LAST 2 YEARS ACQUISITION

BOUGHT LAST

99

26

7

3

Platinum jewellery bought or been given

Jewellery bought or received that was set in Platinum

23

16

67

47

27

10

GIFT

SELF PURCHASE

EARRINGS

NECKLACE

ETERNITY RING

BRACELET

Familiarity

Base: Total Sample (433)

Base: Last 2 year acquisition (30)

Very little outright rejection of Platinum. A high degree of shared consideration with White Gold

BE3. How likely are you to consider each of these metals next time you acquire jewellery made from metal? Base: Heard of Platinum (430), White Gold (431), Silver (433), Yellow Gold (425), Titanium (409), Pink gold (280), Stainless Steel (413), Palladium (194), Tungsten (242)

10

Consideration

3 3 9 20 26 24 27 35 37

8 20 24

36 32 52 53 42 49 38

34 45 32 29

21 12 17 13

52 43 22 12

13 3 8

5 2 First choice

Seriously consider

Might consider Would not consider

MEAN SCORE (+4 to +1) 3.39 3.18 2.80 2.36 2.29 2.03 2.01 1.92 1.79

WHITE GOLD PLATINUM SILVER

PINK GOLD

YELLOW GOLD TITANIUM PALLADIUM TUNGSTEN

STAINLESS STEEL

Significant overlap in Platinum and White Gold consideration: Of

Platinum T2B considerers 93% would consider White Gold

What do consumers know about Platinum and other metals?

High level of advocacy for Platinum

BE5. How likely are you to recommend these metals to friends or family? Base: Heard of Platinum (430), White Gold (431), Silver (433), Yellow Gold (425), Titanium (409), Pink gold (280), Stainless steel (413), Palladium (194), Tungsten (242)

12

Likelihood To Recommend: ‘Very likely’ 9 to 10

57

46

32

26

18

10

9

7

3

WHITE GOLD

PLATINUM

SILVER

YELLOW GOLD

PINK GOLD

STAINLESS STEEL

PALLADIUM

TITANIUM

TUNGSTEN

Advocates would recommend Platinum primarily for ‘quality’ reasons: long lasting, durable, strong, high quality

BE5b. Why are you likely to recommend platinum to your friends or family? Base: Total Sample (433) 13

Why would you recommend Platinum?

Metal Qualities 64

Good/high quality 25

Long lasting/durable 25

Strong 16

Won’t tarnish/lose colour 4

Best quality 3

Good colour 2

Scratch resistant 1

Appearance 27

Looks good 17

Beautiful 10

Price 7

Expensive/high value 4

Valuable 2

Good investment 1

Better than others 3

Heard good things about 3

Luxury/Prestige 2

Platinum intended positioning 1

Rare 1

Cost is the obvious aspect differentiating Platinum, but beyond this the clear distinction emerges as Platinum being the ‘quality’ metal

BD10. Please describe this metal using any 3 words Base: Total Sample (433) 14

Metal Imprint

Metal Qualities 51 Long lasting/durable 19 Shiny 18 Strong 14 High quality 11 Hard 6 Sturdy 3 Rare 2 Price 48 Costly/expensive 45 Valuable 2 Appearance 15 Pretty 9 Beautiful 6 Trendy choice 13 Trendy/stylish 6 Modern/up-to-date 4 New 3 Looks like silver 13 Stylish/classic/elegant 11 Luxury/prestige 9 Platinum intended positioning 4 Rare 2 Eternal/forever 1 Pure 1

PLATINUM

Platinum has a distinct personality defined by elegance, confidence, allure, savvy and authentic

BDBA. If …(METAL) were a person, with its own personality, which of these words would best describe it? Base: Heard of Platinum (430) Yellow Gold (425) White Gold (431) 15

ELEGANT

CONFIDENT

ALLURING

SAVVY

AUTHENTIC

BELIEVES IN UNCHANGING LOVE

YOUTHFUL

TRUE TO THEMSELVES AND OTHERS

54

49

42

24

24

20

19

15

PLATINUM Personality

What is the consumers’ pre-disposition towards Platinum and other metals?

MEANINGFUL

DIFFERENT

SALIENT Comes to mind quickly and readily when activated by ideas relating to category purchase

Consumers feel an affinity for the product or think it meets their needs

Feels different from others or sets the trends for the category

The capacity of a product to deliver volume share and justify a higher price point is dependent on how meaningful, different and salient it is to consumers

€

17 PR

EDIS

POSI

TION

Are consumers predisposed to chose platinum over other metals?

Prior to point of purchase, Platinum has strong consumer predisposition to purchase, especially in context of its smaller market share.

19

Above Average

On Average

Below Average

WHITE GOLD PLATINUM SILVER YELLOW GOLD

11.1%

AVERAGE

100

TITANIUM STAINLESS STEEL

PINK GOLD PALLADIUM TUNGSTEN

Power Share

Power Index

Power Share

Power Index

219 192 163 105

61 60 51 25 24

24.4% 21.3% 18.2% 11.6%

2.8% 2.7% 6.8% 5.6% 6.7%

An explanation of how to read propellers

In this example, the metal is above average on all 3 qualities (shown by the distance from the Index 100 line) but particularly strong on Meaningful, the most important measure in this category. With a profile like this, this metal exhibits strong Power.

Propelling growth is powered by being meaningful, different, and salient, but these 3 qualities aren’t equally important in every category. The ‘Propeller’ helps us to intuitively diagnose the market and the competition. The importance to the category is represented by the size of the sector in the propeller. In the example below Meaningful is the most important, followed by Salient and then Different.

Index 100

We firstly establish how important each measure is…

Then compare the performance of each metal on these 3 measures against the market norm

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Platinum delivers well against all three factors that contribute to Power, and is recognised as the most unique metal in the category

21

Propellers – Core Competitors

WHITE GOLD

PLATINUM

YELLOW GOLD

Are consumers predisposed to pay more for platinum?

Platinum is recognised as the most expensive metal in the category by some margin

BP5. Please drag each metal onto the scale to indicate how much you think it costs Base: Heard of Platinum (430), White Gold (431), Silver (433), Yellow Gold (425), Titanium (409), Pink Gold (280), Stainless steel (413), Palladium (194), Tungsten (242)

23

Perceived Price Index

AVERAGE 1.00

PLATINUM 1.97

WHITE GOLD 1.44

SILVER 0.46

YELLOW GOLD 1.23

TITANIUM 1.04

PINK GOLD 1.24

STAINLESS STEEL 0.23

PALLADIUM 1.05

TUNGSTEN 0.62

0 COSTS

THE LEAST

2 COSTS

THE MOST

However, platinum justifies its cost

BP6: drag each metal to the statement that best describes how much you think the metal is worth. Base: Heard of Platinum (430), White Gold (431), Silver (433), Yellow Gold (425), Titanium (409), Pink Gold (280), Stainless STEEL (413), Palladium (194), Tungsten (242)

24

PLATINUM

Worth more than it costs

Worth less than it costs

Worth what it costs

Worth

What are the key drivers of consumer predisposition in metals?

Millward Brown model to understand what drives meaningful difference and salience in the metal category Identifying the drivers of predisposition enables us to understand how associations build consumer predisposition to the metals

MEANINGFUL

SALIENT

DIFFERENT

CORE

PURE/PRECIOUS

AFFORDABLE

NATURALLY WHITE

STYLISH/RARE

NEVER TARNISH

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ARE THE BEST CHOICE FOR WEDDING JEWELRY

ARE THE PREFERRED SETTING FOR DIAMONDS

YOU WOULD ASPIRE TO OWN

ARE A CLEAR SYMBOL OF LOVE

HAVE LASTING VALUE

ARE ETERNAL

ARE PURE

ARE PRECIOUS

ARE RARE

ARE STYLISH

ARE WITHIN MY BUDGET

NEVER FADE OR TARNISH

ARE NATURALLY WHITE

How is Platinum positioned against these and what are the opportunities?

Platinum delivers well against 3 of the core category needs

BP7. Which of these metals do you think..? Based on heard of: Heard of Platinum (430) 28

Image Profiles Ranked on Factor Analysis

CORE

PURE/PRECIOUS

AFFORDABLE

NATURALLY WHITE

STYLISH/RARE

NEVER TARNISH

Are the best choice for wedding jewellery  

Are the preferred setting for diamonds  

You would aspire to own  

Are a clear symbol of love  

Have lasting value  

Are eternal  

Are stylish  

Are rare  

Are within my budget  

Are pure  

Are precious  

Never fade or tarnish  

Are naturally white  

20

25

18

-4

2

-3

-3

-2

-51

-8

-6

0

15

PLATINUM

Incre

asing

impo

rtanc

e to c

onsu

mer

pred

ispos

ition (

PREM

IUM)

What can we learn from the engagement ring acquirer group?

29

Platinum engagement ring acquirers are more likely to acknowledge that metals have very different things to offer

Difference of metals to one another

BD5. Which of these statements best describes how different metals are? Base: Total Sample (433), Platinum Acquirers (113), Platinum Engagement Ring Acquirers (75) 30

9 1

58

31 Very different

Quite different

Similar to one another

Mean score (+4 to +1) 3.20

All the same 5 1

64

30

3.23

Main Sample %

Platinum Acquirers (Ever)

%

Platinum Engagement Ring Acquirers (last 2 years)

%

49

51

3.51

- -

Platinum engagement ring acquirers feel platinum has a more defined personality, with ‘elegance’ being one of the key differences versus main sample

BDBA. If …(METAL) were a person, with its own personality, which of these words would best describe it? Base: Main sample (430) Pt acquirers (113) Pt engagement ring acquirers (75) 31

ELEGANT

CONFIDENT

ALLURING

SAVVY

AUTHENTIC

BELIEVES IN UNCHANGING LOVE

YOUTHFUL

TRUE TO THEMSELVES AND OTHERS

54

49

42

24

24

20

19

15

56

47

45

25

27

23

24

21

73

53

48

31

35

36

37

37

Personality: Platinum Main Sample %

Platinum Acquirers (Ever)

%

Platinum Engagement Ring Acquirers (last 2 years)

%

Platinum’s competitive qualities come through among the more ‘category involved’ group of engagement ring acquirers, and even more so among platinum acquirers

32

Engagement ring acquirers vs. Main sample

Platinum engagement ring acquirers vs. engagement ring acquirers

Factors more closely associated with Pt

Are rare (+8ppts) Are a clear symbol of love (+4ppts)

Are in budget (+4ppts)

ALL. MOST NOTABLE STRENGTHS: Preferred setting for diamonds (+21ppts)

Are pure (+19ppts) Are eternal (+18 ppts)

Never fade or tarnish (+17ppts) Lasting value (+17ppts)

No difference in perceptions

Are the best choice for wedding jewellery Are eternal Are stylish Are pure

Are precious Never fade or tarnish

Are naturally white

Factors less associated with Pt

Have lasting value (-4ppts) You would aspire to own (-5ppts)

Preferred setting for diamonds (-7ppts)

Platinum engagement ring acquirers skew older, more affluent and have a greater appreciation that metals have different properties

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Platinum engagement ring acquirers indexed against engagement ring acquirers

Importance of choosing right metal: very 102 Difference of metal to one another: very 121

AGE 25-29 89 30-34 109

INVOLVEMENT IN PURCHASE Bought together 70 Gave hints 121

No involvement 136 REGION New England 100

Middle Atlantic 138 East North Central 133 West North Central 14

South Atlantic 145 East South Central 200 West South Central 78

Mountain 56 Pacific 60

HOUSEHOLD INCOME ($’000) 55-74 39 75-99 85

100-149 163 150+ 145

Who are the Platinum engagement ring acquirers?

Has the marketing activity for Platinum cut-through and been noticed by the target?

34

In store, print and digital are the key channels for driving awareness of platinum

TBC1. Have you seen, heard, or read anything about these metals anywhere recently? TBC2. Where have you seen, heard or read anything about…. (METAL) recently? Base: Total Sample (433)

35

Total Communications Awareness

ANY MEDIA AWARENESS (NET)

ANY IN STORE (NET) In a jewellers window

Inside a jewelery store Talking to sales staff in store

ANY PRINT (NET) Magazines (including adverts, editorials and articles)

Newspaper flyer inserts Newspapers (including adverts and articles)

ANY DIGITAL (NET) Online Email

ANY TV (NET) TV ads

TV programmes (news, mail order) TALKING TO FRIENDS, RELATIVES OR COLLEAGUES

BROCHURE/CATALOGUE RADIO

BRIDAL EVENT (E.G. FAIR, EXHIBITION) POSTERS

THROUGH THE POST OUTDOOR

39

24 21 20

8 21

19 4 3

19 19

4 17 16

3 15

11 7

5 3 2 2

PLATINUM

From spontaneous consumer playback, responses show how they’re exposed to a broad range of jewelry advertising, that the qualities of platinum have come through well, and is recognised as a great choice for wedding jewelry

TBC3. You said you’ve seen, heard or read something about Platinum advertised recently. What did you see, hear or read about Platinum? 36

OTHER RETAILER/BRAND ADVERTISING METAL QUALITIES PREVALENCE FOR ENGAGEMENT

RINGS (WEDDING BANDS)

Tiffany’s website

Ads on jewellery

Adverts for jewellery for Valentines day from various well known

jewellery stores on TV

An advert from a local jewellery store

showcasing new items for Valentines day

which included platinum pieces

Good quality metal

Read in a magazine platinum is a very

durable metal

I saw it in a window. It looks stylish and I hear

it is very sturdy and durable

It is rare, it’s dynamic, it’s beautiful

The metal that lasts forever

It was in reference to being “THE” metal to

buy your engagement/wedding ring in

Seen many magazine and TV commercials for platinum engagement

rings

How great the metal is for engagement rings

I’ve heard most brides want platinum for their

ring

It’s the way to go for wedding jewellery, it’s

the best and most precious metal

What have consumers seen, heard or read about platinum recently?

A TV ad about Forevermark

Consumers state that it’s the in store environment that has greatest influence on purchase, and in particular the role and advice from the sales person. Online search and WOM were also influential for platinum

LTACT1: Which of the following encouraged you to choose when you were considering which metal to buy? Base: Platinum (80) White Gold (198) 37

Stated importance of demand and activation influences on purchase

55 28

24 15

11 10

6 41

14 10

4 21

36 29

10 25

14 11

8 19 19

INSTORE LEVER (NET) Talking to a sales person in store

Recommended by a sales person in store It was displayed prominently in store

Finding out there was a sale there There was a good range of products on display for that metal

There were advertisements posted for it in or around the store ADVERTISING LEVER (NET)

Seeing TV advertisements Seeing magazine advertisements

Seeing internet advertising Information found online

WOM LEVER (NET) Talking to a friend, partner or family member

Endorsed by a celebrity PRICE LEVER (NET)

It was at a good price compared to others Finding out there was a sale there

Finding out the jewelry was more affordable than I had imagined DESIGN/AVAILABILITY LEVER (NET)

It came in the design you wanted and others didn't

PLATINUM