Hidesign Vikas Singh @ IIM Ahmedabad
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The document discusses the strategies of an Indian leather brand. It plans to establish 30 outlets worldwide to boost its brand image and global presence. It also aims to expand its domestic market in India by focusing on urban areas with growing incomes and brand consciousness. While expanding globally and domestically could increase sales volumes and revenues, entering the low price market may dilute the brand and alienate loyal customers, as quality may suffer and it is not the brand's strength. The recommendations include global expansion through exclusive brand outlets and retail stores while maximizing opportunities in domestic airports and events through relationship marketing and ambush marketing.
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Hidesign Vikas Singh @ IIM Ahmedabad
- 3. Future Strategies • Establish 30 outlets across the world • Make a foray into low price Market • Expansion of domestic market in india afp11vikasr@iimahd.ernet.in
- 4. Case Facts • An exception in Indian Leather market • Reflected spirit of cultural revolution • USP : Craftsmanship - Brand still uses the traditional craftsmanship (70% of the work is by hand) • Boutiques for branded leather products non existent • Focus in Indian Market after 1990 • Business run by ethics and represented a concern for the environment • Stylish, elegant and classy products, • Work oriented brand • Sale only in upmarket stores afp11vikasr@iimahd.ernet.in
- 5. Customer feedback Better than expected “I love the cross-body design of this purse. They very smartly designed the way that the strap attaches to the purse. It looks sleek and holds everything that I need. The leather is very soft and nice, and I love the way that the purse will stand on its base. The purse did ship with an unusual tanning smell but it wore off quickly” Source : http://www.amazon.com/HIDESIGN-by-Scully-Mara-Cross-Body/product- reviews/B002OOURFS afp11vikasr@iimahd.ernet.in
- 7. Case Analysis Product • Premium brand • Work oriented • Huge variety • High quality • Ecological Values • Personalized service • Every product a limited edition • Hand crafted exclusive design • Emotional connect afp11vikasr@iimahd.ernet.in
- 9. Case Analysis • Place • Business associates overseas- Mrs Lowel, John Lewis • Over 60 exclusive retail in 20 countries • Channel Partners • UK- John Lewis, House of freses • Australia- Myers, David Janes • South Africa- Stauttafards, Edgars • South East Asia- Parkson, Robinson, Istaean • India- Lifestyle, Shoppers stop afp11vikasr@iimahd.ernet.in
- 10. Case Analysis • Promotion • International orientation • Relatively lower budget • Foreign models with International appeal • Medium- Advertising and PR agency • Services of professionals for interior designing of stores • ATL & BTL activities • Print ad • Attempt to get into Guinness book of world records • Wide media coverage to press conference by company • Merchandising & display in retail environment • Bollywood Parties & Fashion shows • Promotional activities and events afp11vikasr@iimahd.ernet.in
- 11. Strategic Vision “We have always taken innovative steps in reaching out to our target group through concentrated campaigns. In the early 2000s instead of going mass with advertising, or directing marketing activities towards airports way before other luxury lifestyle retailers saw the opportunity,“ Dilip Kapur, President of Hidesign • Source : http://economictimes.indiatimes.com/news/news-by-industry/cons-products/durables/social-networking-sites-drive- hidesign-to-tier-ii-cities/articleshow/7670109.cms afp11vikasr@iimahd.ernet.in
- 12. Positioning • Brand rightfully identified its core value • Positioning is in line with the strength of the brand • Choice of the media and the copy of the campaign also reflect the positioning • Brand has wide product portfolio • Looking into expanding to different segments within the category • Company is planning to introduce bags under a separate brand name afp11vikasr@iimahd.ernet.in
- 13. Integrated Marketing Activities • Using its stores and all the marketing mixes carefully in promoting the brand • Brand has been built over time • Management has been careful in building the core values of the brand • Company has been spending the money wisely and carefully • Targeted segments rather than masses • Overall marketing activities have been very rational • Helped the company to create a world class brand afp11vikasr@iimahd.ernet.in
- 14. Strategies • Establish 30 EBOs across the world – Boost brand image – Business expansion – Better stature in the global league – Wide range of high quality products – Enabling conditions • International brand recognition • Global presence • Channel partners • Funds – Additional production – Marketing afp11vikasr@iimahd.ernet.in
- 15. • Won the ‘Accessory of the Year” award from a British magazine, which gained the firm much visibility • Best Brand- Bags & Accessories :Shoppers Stop Pinnacle Awards 2010 afp11vikasr@iimahd.ernet.in
- 16. Strategies Expansion of domestic market in India – Conducive opportunity – Urbanization on rise – Growing economy – Increase in professional class – Propensity to spend on lifestyle product – Rising brand consciousness – Growing mall and retail culture afp11vikasr@iimahd.ernet.in
- 17. Strategies Make a foray into low price market – Getting access to a wider segment – Increased volume and revenue ? – Better visibility and awareness – Dilution of brand and quality – May loose existing loyal customers – Low price not the forte of hidesign – Not fitting to the niche crafted in the luxury segment – Competition from unorganized sector – Different Brand- Similar consequences afp11vikasr@iimahd.ernet.in
- 19. Existing cost structure • Sold overseas in upper-Middle price range ($125 and $200 Yr-2006) • Markup of 550-600% over factory cost • Wholesale price was 85% over the landed costs • Standard retail markup in the vicinity of 240-250% • Most expensive leather bags in India, an upper-upper class brand • Average markup from the factory gate - About 220% • Prices about half of those for the same bags sold outside India afp11vikasr@iimahd.ernet.in
- 20. Strategies Strategy for expansion in India – Channel Partners – Company outlets – Concentrate on posh clusters – Personalized service – Customer care – Marketing campaign • Merchandising • Status connect • Exclusivity in the store • Premium segment afp11vikasr@iimahd.ernet.in
- 21. Recommendations • Global expansion through EBOs and retail stores • Focus on domestic market • Maximizing opportunities at airports • Relationship Marketing • Ambush marketing @ high profile events (Faishon Shows, Sports etc) • Cashing on the Social networking sites afp11vikasr@iimahd.ernet.in