The Hindu : Andhra Pradesh / Hyderabad News : Akshaya Tritiya: marketing gimmicks to the fore

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Thursday, May 08, 2008
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Akshaya Tritiya: marketing gimmicks to the fore

Special Correspondent

Shops list out ‘schemes’ to attract customers

Buyers told not to be misguided by ads
Major Akshaya Tritiya purchases expected today

AUSPICIOUS DAY: Women buying gold ornaments at a jewellery shop on the occasion of ‘Akshaya Tritiya’ on Wednesday.

HYDERABAD: As if the timely fall in gold prices is not reason enough, jewellery showrooms in twin cities raised the pitch of marketing hype for Akshaya Tritiya, to attract droves of customers on Wednesday and Thursday.

The marketing ploys right from ‘offering gold at the World’s Lowest Rate’ to ‘75 per cent discount on making charges,’ ‘Gifts on purchase of minimum 10 grams’, did drive the potential customers into a tizzy. But some found the ‘World’s lowest price’ tag of Rs.1,053 per gram for 22 carat ornamental gold of standard purity unbelievable, when the market price was between Rs.1,140 to 1,160 per gram.

Calls to different shops proved that a 10 gm ornamental gold coin would not cost Rs. 10,530 as advertised, but Rs.11,125. Other ornaments would cost Rs.11,350 per 10 gm plus tax.

‘Chennai’ price

Not to be outdone, prominent jewellery showrooms in Punjagutta made an offer of Rs.1,083 per gram, quoting ‘Chennai’ price.

How is it possible to offer gold at a price less than the international price, wondered many jewellers, dismissing it as a marketing gimmick. “When gold is imported, one has to pay excise duty, sales tax and insurance charges plus bank’s commission. When some one offers a price much less than the cost price, he is sure to make up for it through wastage and making charges. Ultimately there is no big difference in the price of standard quality gold,” they analyse.

“I would advise customers not to be misguided by such advertisements. It is a ploy to attract customers to a shop and ultimately they are charged differently,” says Twin Cities Jewellers Association President Harikishan Gupta.

But not every one is offering ‘drop dead’ prices.

For instance Ashok Gupta of Totaram Jewellers say they don’t believe in such publicity gimmicks and their customers are aware of it.

Meanwhile P. Murugan, Diamond Store Manager of Meena Jewellers, Punjagutta says unlike Dhanteras during Deepavali, for Akshaya Tritiya preference is for gold jewellery than gold coins.

“The Akshaya Tritiya started from late Wednesday afternoon but they expect major response on Thursday,” said many jewellers.

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