Kate spade case study
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Kate spade case study

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Kate spade case study Kate spade case study Presentation Transcript

  • KATE SPADE Risk turns niches into opportunities Presented by Group 3 Swatanu 108 Bertila 86 Rajeev 72 Manan 85 Shrey 102 Vipender 87
  • Background
    • Katherine (Kate Noel Brosnahan ) graduated in 1986,
    • Was employed by Mademoiselle magazine
    • She left in 1991, from the post of senior fashion editor
    • dept. head of accessories
    • Kate & her then fiancé and now husband Andy Spade
    • saw that Women’s fashion accessories market lacked
    • Stylish and practical handbags
    • They decided to start in this field
  • Starting up Mission “ To develop a well-edited line of fashionable, but ‘not-trendy’ handbags ” Vision “ Developing product lines & appropriately positioning the company in both domestic & global marketplace ” Objective “ To create products that combine great personal style with long-lasting utility ”
  • Starting up
    • Initially developed design sketches for 6 handbags with simple shapes
    • Importance on utility, color and fabric
    • Brand “ KATE SPADE HANDBAGS ”
    • Kate took up charge of production (full-time work)
    • Andy contributed to marketing expertise (part-time work on weekends and at night-shifts)
    • Andy who was previously working at a advertising agency became president and creative director in 1996
  • KATE SPADE IS A RENOWNED BRAND TODAY !!!
    • Strengths
    • Fashion oriented products
    • Risk taking ability of Kate Brosnahan
    • Marketing expertise of Andy Spade
    • Simontas’ fantastic negotiation skills were one of the major strengths
    • A pool of expert and talented employees
    • Weakness
    • Andy Spade being unable to give full time to the business during start-up
    • Trendy products were not in the list
    • Opportunities
    • Fashion conscious markets across the globe
    • E-commerce options
    • Customer preferring variations in products
    • Design airhostess uniforms for different airlines
    • Threats
    • O ther competitors giving strong competition.
    • E.g :Ralph Lauren
    • Markets preferring trendy products
    • Duplication and piracy
  • THE QUESTIONS THAT FOLLOW
  • Q1 .Describe the key decisions that Kate & Andy faced in the startup of their company ?
    • Kate quit a well paid job
    • Chose fashionable line instead of trendy line
    • Andy continued with his job to maintain the required resources needed & also to gain marketing experience
    • Andy decided to work in night shifts and weekends despite his hectic schedule in the advertising agency
  • Q2 .What were the key elements of Kate Spade’s growth in the first decade of its operations ? What specific business decision were made in implementing these key elements of growth ?
    • Arrival of Andy Spade as a full time resource in 1996 for the position of president and creative director. He had expertise in marketing and advertisement.
    • Arrival of Pamela Simontas in 1993 to assist sourcing of materials & manufacturing of the handbags
    • Arrival of Elyce Arons in 1994 to focus on sales & PR
    • Increasing the pool of talent to 7-member partnership
    • Design philosophy was to combine great personal style & provide long lasting utility
  • Q2 .What were the key elements of Kate Spade’s growth in the first decade of its operations ? What specific business decision were made in implementing these key elements of growth ?
    • Setting up of its first outlet in New York City in the SOHO neighborhood which is considered a posh fashion locality
    • Expansion in up-growing markets
            • Domestic level : Boston, Los Angeles, Greenwich, Manhasset, San Francisco, Georgetown, Chicago
            • International : Tokyo, Kyoto, Osaka (JAPAN) & Australia, Bahamas, Bermuda, Canada, England Guam, Hong Kong, Ireland, Korea, Singapore, Taiwan
  • Q3 .What key decisions will Kate Spade need to make during the 2 nd decade of its operation?
    • To develop & focus more on e-commerce facility to continue its phenomenal success of past decade
    • To continue its expansion to emerging markets like India, Brazil, China etc.
    • To develop JACK SPADE as a brand and make it the company’s growth engine by introducing new product-lines like glasses, shoes, wallets, male grooming products
    • To advertise more in the fashion market. Showcase products in fashion-related events worldwide.
    • E.g. Lakme India fashion week, Paris Int’l fashion fest
  • Q3 .What key decisions will Kate Spade need to make during the 2 nd decade of its operation?
    • To emphasize more on fashion and improve on quality rather than current market-trend of low cost merchandise
    • To continue differentiating themselves from their competitors by exploring options of e-commerce and gaining competitive advantage by making use of Information Systems.
  • Q4 .What options are available to Kate Spade in developing an e-commerce operation?
    • E-commerce to enable people in countries where franchises not available to purchase KATE SPADE merchandise. Saves the cost of setting up an outlet in that country/ location
    • Provide virtual/3D products visuals on the web to appeal more to the consumers
    • Link website to shopping zones like e-bay.com, amazon.com on the network
  • Q5. How might Kate Spade utilize information technology to help fuel continuing global expansion ?
    • Website to be used for multi purpose of advertising as well as for on-line selling of products
    • Advertising on popular sites like facebook, orkut etc.
    • Use databases to stay updated about supply and product availability in various centers all around the world. Automate logistics and supply procedure
    • By data mining techniques to effectively see what products sell in what numbers
    • Maintain customer database to know tastes and preferences of different customers
    • Just in time technology
  • THANK YOU