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The DiscoNinjas
CASE STUDY
Jamnalal Bajaj Institute of Management Studies
Hardik D. Shah Kaushal Dedhia Vikram Joshi
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Agenda
Situation Analysis
Understanding the Customer
Defining the Marketing Strategy
Strategic Roadmap
Need Gap Analysis and Brand Extension
IMC Campaign
Pre Purchase ATL/BTL Activities
During Purchase Improving In-Store Experience
Post Purchase Improving Ownership Experience
Appendices
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Situation Analysis
Value Same TG?
C
o
m
p
e
t
i
t
o
r
s
0 1 2 3 4
Fastrack
Liviya
Hidesign
Giordano
Louis Vuitton
Hermes
Eliza Donatein
Burberry
Da Milano ?? Yes
Tradition Yes
Corporate Yes
Tradition Yes
Heritage Yes
Value Yes
Contemporary Yes
Trendy No
Youth No
100% pure leather
to gain the Trust
to build a sustainable
brand
Source: euromonitor.com, primary research
C
o
n
s
u
m
e
r
67%
20%
13%
Shoulder and Tote Bags
Top Handle Bags
Clutches and Wristlets
As per our primary research, customer
segment starts above 25 and extends
till 40
Target Group Correction
Existing 23 35 years
New 25 40 years
Most of the customers are
SEC A, living in Metro cities
Own a Four wheeler
Own a smart phone
Use Laptops / Tablets
Current Composition of Handbag
Sales
M
a
r
k
e
t
2596.83
4258.74
2012 2013 2014 2015 2016 2017 G
r
o
w
t
h
:

1
0
.
4
%

C
A
G
R
U
n
o
r
g
a
n
i
z
e
d

s
e
c
t
:

6
0
-
7
0
%
Key Growth Drivers:
Increasing number of working women
Rising incomes
Increasing fashion consciousness and aspiration levels
Growing influx of foreign brands
Increasing number of malls and modern retailing outlets
Handbag Market Size
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Understand The Customer
Repeat Purchase Inhibitors
Source: Primary research with store visitors, Da Milanos feedback books
Occasions of Use: Meetings, Socializing, Going Out with Friends, Party
Occasions of Purchase: General, Gift events, Sale
Stimulus of Purchase: Occasions, Replacing worn/old product
Type of Stimulus: Emotional
Need: To look trendy, stylish
Products: Handbags / Purses / Clutches /Wallets for all occasions; Belts, Shoes
Age: 27 40
Gender: Female
Location: Metros
Sec A
Brand Recall - Trust
Top 3 key buying factors
Source: Mckinsey Insights 2011 Luxury
Consumer report and Primary Research
Occasions of use: Meetings, Everyday Office, Socializing, Party , Travel
Occasions of Purchase: General, Gift events, Sale
Stimulus of Purchase: Occasions, Replacing worn/old product
Type of Stimulus: Rational, Emotional
Age: 27 40
Gender: Male
Location: Metros
Sec A
Need: Utility while maintaining status quo ; To Gift
Products: Wallets, Belts, Shoes, Manbags, Folders
3. Good Material
2. Innovative Design
1. Superior Craftsmanship
1. Want to try and have a wardrobe of different brands
2. Need a separate product for every occasion
3. Do not have a connect with the brand
4. Lack knowledge about new arrivals / sale periods
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Genuine Leather Craftsmanship Premium
Challenge : Marketing Strategy
Value Proposition: Premium designs handcrafted with 100% pure leather : Trust
Secondary Associations - Create Primary Brand Elements - Maintain
Name : Da Milano
Logo : Deer
Symbols: DM
Packaging: Elegant
Personalities: In film / twitter female actors
Events: Wine tasting, Fashion shows
Purchase Decision Influencers: 1. Celebrity Trends 2. Fashion Magazines 3. Internet Research
Distribution Channels: Own outlets to maintain exclusivity & counter counterfeits : FOCO / COCO
Strategies to Increase Repeat Purchase
Know customer preferences and remind
Brand extension for more categories of purchase
Campaign on Changing Trends per season
Complete your wardrobe with different products
Strategies to Increase Brand Recall
Connect Da Milano to 100% pure leather
Build on core value of Trust us for leather
Gift leather products to celebrities
Run features in fashion magazines
Pre Purchase During Purchase Post Purchase
Infuse Quality of Trust
Top Of the Mind Recall :
DM = leather
Modernize experience
Enrich experience
Learn trends / likes
Maintain relations
Inform new trends/ stock
Bring back to store
Trust
Vision : To be first choice in Luxury Leather Goods
1. To push repeat purchase across categories quarter-on-quarter
2. To pull repeat purchases on the same category year-on-year
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Deliverable : Strategic Roadmap
IMC
Campaign
Q1- 14
Brand
Extension
Advertising
ATL / BTL
Q2 -14 Q3-14 Q4-14 Q1-15 Q2-15 Q4-15 Future Q3-15
Repeat
Purchase
QoQ
]
75
50
25
Launch
of new
product
Integrated Marketing
Campaign
On Going BTL
Quarterly
Trigger for
Repeat
Purchases
QoQ
repeat
purchase
rate > 60
Extend brand according to
consumer needs
Implement IMC on core
values based on Brand Recall
parameters
Implement tactics to repeat
QoQ purchases
Use ATL/ BTL to pull/push sales
Stock
Clearance
Sale
0.00
20.00
1 2 3 4 5 6 7 8
Cost / Benefit
Goals
Stock
Clearance
Sale
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Need Gap & Brand Extension
Launch of new products, to suit occasions of use and
occasions of purchase unaddressed by existing
portfolio
Conjoint Analysis Suggests following brand extensions
Watches, Jackets, Hats & Gloves
Based on primary research, we found most consumers
would want Watches
Challenge : Economies of Scale
1. Watch straps will utilize the small side strips remains
2. Jackets, Gloves etc. will be produced in parallel with more RM order quantity at EOQ
Launch of
New Products
1. Recycle Da Milano leather for corporate gifts
2. Reduce RM costs and import costs over RM
Recycle
1. Order RM so as holding cost does not exceed 50% of net profits
2. RM types should be kept at minimum to reduce overhead costs in import
Procurement
Watch
Jackets
Hats
Gloves
0 5 10 15 20
New Products that customers want
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Customer Touchpoints
25-40 years, Metro, Sec A
Identify the Target
Audiences
Style and elegance, Handcrafted from 100%
pure leather
Designing a Message
INR 2 Cr
Establish Marketing
Communications
Budget
Billboards
Magazine Ads, Airport Luggage tags
Marketing
Communication
Channels
Ask the customers to associate a brand with
Leather Goods
Measure results
Work
Friends
Family
Family
E-mails, Travel
exposure
Gifts,
Word of
Mouth
Social
Media
Magazine
Deliverable : IMC Campaign
To increase top of the mind brand
recall and associate DA MILANO with
100% pure handcrafted leather
Objective
Gucci, 11
Da Milano, 4
Hidesign, 9
DKNY, 8
Louis Vuitton,
10
Others, 13
0
2
4
6
8
10
12
14
0 1 2 3 4 5 6 7
Brand Recall Scatter Map: Leather Goods
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Challenge, Deliverable : ATL/BTL Activities : Pre Purchase
ATL Cost BTL Cost
Hoardings 3.0 In film advertising 1.00
Print Media 1.0 Sponsorships in Fashion events 1.00
Advertising in 5-Star Hotels 0.50
Airport Baggage tags 0.52
Sponsorships in Wine Tasting
Festivals
0.20
Android, iOS Application 0.02
Social Media campaigns and
contests
0.06
Total 4.0 3.3
Cost Approximations
All figures in Rs. Crores
Print ads in fashion magazine
Billboards in upmarket locations
ATL
Advertising in 5-star hotels
Airport Baggage tags
In film advertising
Sponsorships
Art / Fashion Shows
Wine Tasting Festivals
BTL
Activities Advertising Strategy
Advertise
Build Trust
Increase Repeat
Purchases
100% Leather
Associate with
stars / films
Replace : Give
old bags back /
to NGO and get
20% off
Discounts
Show change in
trends
Remind need /
occasions
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In-Store Experience : During Purchase
Product Selector Digital Catalogue
Provide tablets to customers to browse through
the catalogue in detail, search and sort
Tablets will also contain 100% pure leather posters
1. Digitizing the Shopping Experience
2. Making the customer feel warm
Serve beverages on arrival Offer candies to kids
Greet the customers on arrival and
departure
3. Wishlist Section
Dedicate a rack to the most aspired products across WISHLISTs
Enable customers to choose product via a app
App results will be based upon:
Product type
Occasion
Price Range
Color preference
Colour
Texture
Occasion
Size
Price
Product Attributes
Consumer Behavior :
Tag WISHLIST products with customer info
Save common attributes of shortlisted products and tag to
customer
Each quarter and purchase occasion, send customer SMS/mail :
Offering products : from his WISHLIST / with similar attributes
SHORTLIST 2 to 3
products
BUY one from the
shortlist
Put the remaining
products in WISHLIST
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Incremental Benefit Loyalty Program
10% off on first 5 purchases >> 50% off on very 6
th
purchase
Birthday and Anniversary Gifts
Bag Keychains
Bag Car Plushies : Hanging from car mirror and can hold cellphones etc.
Ownership Experience : Post Purchase
1. Use the Wishlist
2. Servicing
Every quarter, send SMS/mail suggesting products to customer based on his/her wishlist
Send reminders for purchase occasions : birthdays, rakshbandhan, mothers / daughters day, anniversary
Whenever items in new stock arrive > Search for items that match attributes liked by the customer > Send
SMS / mail displaying product and inviting him/her to take a look
Update about changing trends
Send SMS/mailer to the customers stating:
Your free service with Da Milano is due now. Visit any nearby store for
the same
Get your Da Milano product serviced before Diwali / Christmas / any
other festival. Its absolutely free as per our lifetime warranty program
3. Loyalty Programs
4. Replace Program : Return bag to NGO, get 20% Off*
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Conclusion
P
r
o
b
l
e
m
s
Economies
of Scale
Increase Repeat
Purchases
Increase Brand
Loyalty & Recall
S
o
l
u
t
i
o
n
s
EOQ
Brand
Extension
Push Across
Categories QoQ
Pull Same
Category YoY
Build core value
of TRUST
I
m
p
l
e
m
e
n
t
a
t
i
o
n
Recycle
RM
Make
Watches
100%
Leather
Hand
Crafted
Premium
Purchase Experience
Post In Pre
IMC
A
d
v
e
r
t
i
s
i
n
g
Digitize
Enrich
Wish list
Service
Remind
Loyalty
Pull Same Categories YoY Push Across Categories QoQ
I
m
p
a
c
t
Repeat Purchases >
60% QoQ
Increase Brand Recall
form 7% to 15%
Reduction
in Cost
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Appendix I
Gucci
20%
Da
Milano
7%
Hidesign
16%
DKNY
15%
Louis
Vuitton
18%
Others
24%
Leather Association
Watch
40%
Jackets
30%
Hats
21%
Gloves
9%
New Product
Design
21%
Variety of
Products
28%
Quality
23%
Price
14%
Nice experience
5%
Lifetime warranty
9%
Most liked factor
P
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R
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Current Year Year 1 - forecast Year 2 - forecast
Repeat Purchase Rate 20 20 20 20 20 25 35 40 45 50 60 65
New Customers 25.26 26.19 34.80 27.16 28.17 29.21 36.09 30.29 31.41 32.58 37.42 33.78
Repeat Purchase 5.05 5.24 6.96 5.43 7.04 10.22 14.44 13.63 15.71 19.55 24.32
Sales forecast 29.80 31.25 40.04 34.12 33.60 36.25 46.31 44.73 45.04 48.28 56.97 58.11
Sales without increase in
repeat purchase
29.80 31.25 40.04 34.12 33.60 34.84 41.93 37.51 37.47 38.86 43.94 41.26
Incremental Revenue 0.00 0.00 0.00 0.00 0.00 1.41 4.38 7.22 7.57 9.42 13.03 16.84
Financials
All figures in Rs. Crores
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Appendix II
Details Jet Air Spicejet IndiGo Go Air
Fleet size 82 30 59 12
Flights 357 257 361 160
Passengers
(approximately)
12,00,000 10,00,000 16,00,000 6,00,000
Quantity /
Month
18,50,000 11,70,000 25,00,000 5,75,000
Cost / Month Rs. 21,00,000 Rs. 13,00,000 Rs. 30,00,000 Rs. 6,50,000
Cost / Passenger Rs. 1.75 Rs. 1.3 Rs. 1.88 Rs. 1.08
In Flight advertising estimation
Source: www.themediaant.com
Page position Card rates
Full Page (Femina) Rs. 400,000
Back Cover (Elle India) Rs. 500,000
Area Lit / Rate per Sq. Ft.
Peddar Road Rs. 1000-1500
Monthly cost of
20*20 feet poster
Rs. 4-6 lacs
Print & Billboard estimation