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Kate spade case study


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Kate spade case study

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