It can be difficult to purchase an engagement ring, especially if you don’t have any knowledge of diamonds. Current statistics show that the United States purchases 1.7 Million engagement rings annually (74% of US brides), at an average of $2,000 per diamond ring.

Potential buyers have the ability to research the characteristics of the diamonds they want to purchase before visiting jewelers. This solution solves the problem that potential buyers don’t know enough information about the merchandise’s characteristics. This allows people to gather and learn information before actually visiting their local jewelers to buy diamonds.

Online retailers are not interested in learning and gathering information. They want the learning and gathering process to translate into sales. Selling diamonds online, however, isn’t the same thing as selling books online. People want to see the actual merchandise before buying. What happens if the brilliance displayed on the Internet is not the same as the one I have?

It is about how to leverage the « high-touch » of high-end internet retailers. We struggle to find the right formula for bringing these high-end loose diamonds into the hands of consumers, while others who are selling low-end jewelry have focused on the quantity.

Rocks by Request, (RBR), can help. RBR was established in the Bay Area three years ago, by a third-generation jeweler, Rock Stone. RBR plans on expanding its operations outside of California after the three-year-old operation. RBR’s basic concept is to leverage local jewelers for its #8220front-end. RBR addresses both &#8220credibility&#8221 and &#8220high touch&#8221 issues in selling its high end merchandise via the Internet.

RBR will be positioning itself differently after the dot.com bust. While maintaining connectivity, interactivity, and speed, RBR will also “humanize” e-commerce by combining both technology and tradition in diamond retail industry.

We describe in this strategic plan how to improve connectivity, interactivity, speed and develop recommendations for RBR&#8217’s new business strategy.

1.1 Objectives

• To develop an additional course(s) of action, recommendation, and change(s) to RBR’s current strategy in order to expand the market share in the loose diamond e-tailing industry.
• To advise RBR of industry insights and market trends in the diamond business, provide a psychographic study of the current and potential engagement market, and describe the competitive landscape of this business.

1.2 Mission

Our mission in online retail is to increase our 2% market share. We can see that the current market share in diamond retailing is relatively small when compared to how many diamonds are sold in the United States every year. RBR must grow its network of jewelers as well as strengthen its relationships with media and Internet vendors in order to meet their growth criteria. RBR must also increase its R&D efforts in order to offer the most up-to-date technology in ecommerce.

1.3 Keys for Success

RBR’s key factors for expanding its operations include:

• Extend its network family jewelers across the U.S.A. and worldwide.
• For additional storage, if needed,
• Improvements in logistic/supply chain, which allows for fast delivery and return.
• Repositioning the web site by upgrading graphics elements and implementing state-of-the art navigation.
• For the promotion of the idea of buying loose diamonds online, it is important to form alliances and work with supporting media.
• Adding more product categories into the existing loose diamond category, such as gold settings for pendants, rings, and earrings, and gold trinkets/accessories aimed at younger audience.