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Rose case study

MBA

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Rose case study

  1. 1. Case Study A Rose by any other Name Submitted by: • Chandan Naryani (36449) • Sameer Kudale (36454) • Sarang Shah (36469) • Umesh Kalekar (36477) • Nilesh Deo (36461) • Ajit Sankpal (36444) • Manish Arora (36458)
  2. 2. A Rose by any other Name Summary: •Rose industry is a party goods selling industry and is in business from last 30 years. •Wide range of party products and famous / well known in the target market. •Party! The brand store contributes 20% sale for Rose Industries products. •There are many other small players had come up and had closed but none was able to compete with Rose industries over the long 30 years. •Rose had planned up now to start their own brand and sell the items on their own through rose brand and are worried to lose their business through their selling partners. •We have to suggest whether Rose should go with their own brand selling or they should continue through their selling partners and manufacture for Party! Store but sell under their brand name.
  3. 3. A Rose by any other Name Problem??? Party! has decided to create a private- label line of party goods and wants Rose industries to manufacture it. Or Rose Industries should go for starting up their own Brand. • Data Given 1. Rose industry: A brand in party goods producers, marketers and designers. Willing to go for branding and sell their own products. 2. Party! : The Largest retailer store for the Rose industry products, had offered Rose industry to manufacture for them but they will brand the products under their name and would sell the product in around 300 of their stores giving a good margin to Rose. 3. Party! : If not Rose industry ready to manufacture for them, they might swap to some other supplier and would sell under their own brand. 4. Rose industry: Branding will cost a huge chunk of money on advertising and promotions. Also to start-up with their own stores and getting heat from retailers to keep up with low price margin.
  4. 4. A Rose by any other Name •SWOT Analysis of Rose Industries Strength Weakness Opportunity Threat Reputation No own branding Branding Less barrier for new entrance Loyal customers No fwd. integration Grow the business with existing partners’ Branding can loss some business Quality Have to depend on retailers for sell Products can be produce by new starters Number of years of manufacturing experience Can’t create barrier to other starters on just reputation Substitutes avail with in less price Price margin cannot be increase
  5. 5. 1) Competitive rivalry within the Threat ooff SSuubbssttiittuutteess iiss llooww aass NNoo ssuubbssttiittuuttee pprroodduucctt iiss aavvaaiillaabbllee.. Industry is high 2) Competitors are numerous 3) Industry growth is slow 4) Brand loyalty is insignificant 5) Consumer switching costs are low 6) Exit barriers are high
  6. 6. Competitive rivalry within the Industry is Low till there are no Competitors. Threat ooff SSuubbssttiittuutteess iiss llooww aass NNoo ssuubbssttiittuuttee pprroodduucctt iiss aavvaaiillaabbllee..
  7. 7. A Rose by any other Name • What can be done • As Tom is assuming that Party! The biggest retailer of their product will continue to do the business with them and give space to Rose Industry own brand in their number of retail stores. • Alternate solution would be to do the branding with a new party goods product in market and keeping the older goods to be sell through retailers. • Solution or conclusion • They should not go with branding with the existing product chains. But to go in new chain branding related to party goods, keeping the relation unaffected. • Parameters n Assumptions for not going would be same as pros for non-branding. • Change of strategy • product width strategy, Produce a new branding for new product instead of the existing one. • And for existing business, profit to be created by good relation with existing partners.
  8. 8. A Rose by any other Name • Product differentiation strategy: since the products are new and are of superior quality and are really innovative in the party goods market , it can be priced bit higher compare to our other line of product • Tie up with big E retailers like Amazon or eBay to sell there products as people are becoming more tech savvy • Cost differentiation strategy: once the entire branding process has been done they can try to increase the price slowly and marginally , but not at the one go, there will be a cost which company will have to take in the beginning , but this will help them for the future and they will well prepared to fight with the new entrants

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