Kate Spade started as a fashion brand in the 1990s by Kate Brosnahan and her husband Andy Spade. They saw an opportunity in the women's accessories market that lacked stylish, practical handbags. Their mission was to create fashionable but not trendy bags. Initially they developed sketches for 6 bags and Kate oversaw production while Andy helped with marketing on nights and weekends. By 1996, Andy became president and creative director as the brand grew. Kate Spade's success in its first decade was due to expanding their talent pool, growing their product lines, and opening stores in fashionable areas domestically and internationally.

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. 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

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. 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

5. KATE SPADE IS A RENOWNED BRAND TODAY !!!

6. 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

7. THE QUESTIONS THAT FOLLOW

8. 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

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 ? 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

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 ? 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

11. 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

12. 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.

13. 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

14. 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

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