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National Institute of Fashion Technology

Hyderabad
Master of Fashion Management
2013 2015
Global Marketing
International Launch

Submitted to:
Prof. GHS Prasad
Submitted by:
Gayatri Vs
Jayveer Deo
Sara Mahdi
Vishal Kerkatta (MFM III)

Contents

Leather Goods: Global Scenario


Leather Goods: Indian Scenario
Basta
The Basta Story
Focus
Brand Identity & Brand Image
SWOT analysis
Competitor Analysis
Segmentation|Targeting|Positioning
Perceptual Map
4Ps & Future Strategies
Globally Launching a Product: A Foreward
Bastas 10 Step Launch Program

LEATHER GOODS & ACCESSORIES


Global Scenario:
The global imports of leather goods & accs had increased from US$ 16388.49 mn in 2007 to
US$ 22216.93 mn in 2011, growing at a cumulative annual growth rate of 7.90%. A

Statement showing global import of leather goods & accs viz-a-vis Indias export and share
during 2007 to 2011 is given below:
(Value in Million US$)
Leather Goods & Accs
WORLD IMPORT
INDIA'S EXPORT
% SHARE OF INDIA

2007
2008
2009
2010
2011
16388.49 18117.82 14376.65 17059.43 22216.93
800.46
873.44
757.02
855.78 1089.71
4.88%
4.82%
5.26%
5.01%
4.90%

MAJOR IMPORTING COUNTRIES OF LEATHER GOODS & ACCS:


(Value in Million US$)
2007

2011

3442.41
1748.82
1764.83
1105.43
855.10
893.25
949.24
234.65
302.43
276.47

3862.78
2934.81
2016.83
1558.11
1223.17
1112.29
1055.44
863.67
757.56
604.38

Country
USA
Hong Kong
Japan
France
Germany
Italy
UK
China
Korea Rep
Singapore

These 13 countries together accounts for a share of 77.95% in global leather goods &
accs. important
Top Exporting countries of Leather Goods & Accs
(Value in Mn$)
Country
China
Italy
France
Hong Kong

2007
3407.65
3358.86
2585.48
2033.47

2011
4693.80
4331.55
3405.22
3348.99

Germany
USA
Singapore
UK
Netherlands
Switzerland

500.41
348.70
121.89
257.05
152.88
290.59

701.76
408.82
401.23
335.39
326.22
321.73

(Value in Million US$)

Indian Scenario
Leather Goods form an important segment of the leather industry in India. Leather goods
production capacity is estimated to be 63 million pieces annually.
The different types of Leather Goods and accessories are manufactured in India i.e., Trunks,
suit-cases, vanity-cases, executive-cases, brief-cases, school satchels, traveling bags /
luggage, Portfolio and similar such items, Hand Bags, shopping bags and similar such items,
Wallets, Purses, Pouches, Passport Holders, Credit Card Holders, Diary covers and similar
such items, Leather Belts, Caps etc. India also produces Leather Upholstery Sofa Seat
Covers, Car Seat Covers etc.
Most of the units manufacturing leather goods are located in Kolkata, Chennai, Mumbai,
Kanpur, Bangalore and Puducherry. Industry is situated in few other clusters also.

India is the fifth largest exporter of leather goods and accessories (inclusive of Gloves) in
the world.
Leather Goods and accessories manufactured in India bear brand names like Coach, Pierre
Cardin, Yves St Laurent, Etienne Aigner, Geoffery Beene, Harrods, Marks & Spencer, Liz
Caliborne, Guess, Next, Tommy Hilfiger, Kieffer, Waldhausen, Biemen, Nederinum, Zaldi,
Kallquists, Shires, GFS, Millers, Eisers, Weco, Ukal and Decalthon.

INDIAS EXPORT OF LEATHER GOODS & ACCESSORIES


(Value in Million US$)
2007-08

2008-09

800.46

2009-10

873.44

2010-11

757.02

2011-12

855.78

2012-13

1089.71

1178.96

Source: DGCI& S
Indias export of Leather Goods & Accessories including Gloves touched US$ 1178.96
million in 2012-13, holding a share of 23.59% in Indias total export of US$ 4996.91 mn

INDIAS EXPORT OF LEATHER


(Value in Million US$)
2007-08

2008-09

183.26

232.05

2009-10
121.22

2010-11
165.63

2011-12
238.62

Source: DGCI& S

MAJOR MARKETS
The major markets for Indian Leather Goods & Accessories are USA with a share of 19.12%,
Germany 14.84%, UK 13.10%, France 5.69%, Italy 5.32%, Spain 5.77%, Netherlands 4.57%,
UAE 3.65%, Australia 3.08%, Denmark 2.85%,

INDIAS EXPORT OF LEATHER GOODS & ACCESSORIES


COUNTRY-WISE
(Value in Million US$)
Countries
Germany
USA
UK
Italy
France
Hong Kong
Spain
Russia
Netherlands
Australia
New Zealand

2007-08
122.65
123.86
133.92
56.96
36.07
3.37
59.93
1.02
36.51
28.48
2.25

2008-09
132.08
155.02
125.77
67.51
45.04
4.22
52.33
1.01
41.91
32.72
2.02

2009-10

2010-11

117.75
137.97
123.08
44.82
38.90
5.77
51.47
0.57
38.12
26.00
1.56

2011-12

135.34
162.90
131.74
46.57
48.16
8.71
62.82
0.97
40.86
26.27
2.35

QUANTITY-WISE EXPORT OF LEATHER GOODS:


(In Pcs)
2011-12
Ladies Handbags and other bags
14,382,032
Wallets
53,799,908
Leather Belts, Caps & Ties
9,910,639
Purses
6,904,629
Pouches
2,637,311
Passport holders / Credit card holders 3,871,699
etc
Travel / Luggage ware
Handcrafted leather items
Sofa / Chair/ Car seat covers

639,908
2,342,290
107,678

(upholstery)
Diary Covers / Cheque Book Covers
Pet Accessories
Portfolio / Briefcases
Desktop materials
Covers for

1,266,241
760,102
204,901
434,451
291,274

172.24
196.83
137.14
67.02
59.09
11.49
79.12
2.45
49.39
34.17
3.34

2012-13
174.90
225.47
154.39
62.67
67.05
9.77
67.98
2.74
53.90
36.30
3.32

Camera
, Calculator etc
Leather Toys
Other Leather Goods
Total

78,754
40,999,396
138,631,21
3

CLE Membership Records

QUANTITY-WISE EXPORT OF LEATHER BAGS


(In Prs)

Industrial Bags
Fancy / Fashion Bags
Sports Bags
Other Leather Bags
Total

2011-12
108,706,24
9
1,704,898
150,139
839,703
111,400,989

REGION-WISE EXPORT OF LEATHER GOODS:


(In pcs)

Central
East
North
South
West
Total
CLE Membership Records

2011-12
17,866,725
60,591,235
31,189,464
25,713,413
3,270,376
138,631,213

REGION-WISE EXPORT OF LEATHER BAGS:

REGION
East
North
South
West
Total

2011-12
108,135,469
106,421
3,151,599
7,500
111,400,989

CLE Membership Records


With the availability of quality raw materials coupled with skilled craftsmanship, India is
now poised to make itself a major destination for global sourcing of leather goods and
accessories. State-of-the-art production units and in-house Design Studios will strengthen the
industry in producing products with exquisite design and quality.
The industrys accelerated development and growth is being aided by the ambitious capacity
expansion & modernization plans of private industry and the Indian Governments
encouraging policy measures.

THE BASTA STORY

A homegrown brand, with the brand value to create products using the countrys

strong heritage of craftsmanship.


A strong Indian appeal.
The core value of the brand is its attitude, tradition and its commitment to
environment. Instead of using the much polluting dyes, the brand uses vegetable
dyes.

FOCUS

Good quality, Affordable, Distinctive design & aggressive marketing strategies.


Effective distribution channel a we plan to enter through local distributors like
Westside, Lifestyle, central, shoppers Stop in India and move towards giants like

Hidesign etc.
A mix of tradition, practicality and trendy deigns

BRAND IDENTITY

Ethical
Practical
Innovative
Smart
Premium quality

BRAND IMAGE

Stylish & dependable


Strong individual character
Natural
Environmental concern
Youthful

Stress on natural
leather
processing to
show
authenticity &
differentiation

Focus on
uniqueness &
innovation

Retailed through
premium chains
like Lifestyle,
Westside,
Shoppers Stop

SWOT ANALYSIS
STRENGTHS

Good Distribution Network: Tie-ups with popular Multi Brand Outlets like

Lifestyle, Westside & Shoppers Stop.


High Youth Connect-Positioning as a young & stylish brand
Fast Changing Designs to keep up with the latest trends.
Diverse Portfolio of Bags, Wallets, Laptop Cases, etc

WEAKNESSES

Limited Global Reach despite being a popular brand


Changing Trends-Short life of products

OPPORTUNITIES

Fast growing youth segment presents growth opportunities.


Tie-Ups with established MBOs and special schemes for the youth.

THREATS

Youth segment is price sensitive


Tough competition from established brands like Hidesign & Da Milano

COMPETITORS' ANALYSIS

The Indian leather goods market is still hugely unorganized. There are a number of
individual shops selling products made by individual craftsmen. Talking about the
competitors nationally, there is regional competition, but no national competitors.

MAJOR PLAYERS IN THE MARKET

Hidesign
Da Milano
Kara
Hidesign & Da Milano position themselves as affordable luxury, targeting age
groups upwards of 25 years, with Da Milano priced from Rs. 5,500 upwards
to Rs. 15,500 for ladies bags and Hidesigns leather bags for women & men in the
range of Rs. 1,995 to Rs. 8,895

SEGMENTATION
Psychographic segmentation:
Our segment are those people who value style and that is, those who want to make personal
statement of their style and value the evolved nature of their preference. Thus we target
young college students
Generation, Social class and Income Segmentation:
The brand is aimed at young and middle income group and it is priced accordingly.
Our focus is the mid-to-mass market segments.

TARGETING

The target market consists of people belonging to mid-income households, who

insist on high quality products without having to pay through their nose.
Further, our customer would be anyone who is globalized, cosmopolitan, young

and experimental.
Basta targets customers who are primarily in the 18-25 age-group, students &

young working professionals.


The high per capita income, coupled with a brand-conscious lifestyle, ensures
ongoing demand and tremendous growth prospects for brands such as Basta

POSITIONING

Values are still the same that we are ecological and natural in our
manufacturing process, and still believe in high craftsmanship in modern

designing.
The brand image is more driven by style & exclusivity. The idea is to provide

more and more fashion through latest designs.


We have found that men buy products that are modern and have more
functionality. On the other hand, women are more brand conscious and buy to

look beautiful. We have experimented with different kinds of colors in leather.


We believe that their products possess a certain uniqueness that helps us stand
apart from the crowd and we have always tried to focus on this aspect in our
marketing strategies.

PRODUCT STRATEGY

USP: Youth Appeal


Positioned as casual bags and a fashion statement.
Perceived by the audience as stylish, trendy & practical

Current product offerings: Wallets, Bags, Satchels, Backpacks, Laptop Cases.


Distinctive Design & Ecological values
Handcrafted exclusive design
Emotional connect

PRICING STRATEGY

Midlevel Pricing for Urban Audience in Tier I and II cities


Products range from Rs 650/- to Rs 2500/Wallets starting from Rs 650.
Bags starting from Rs 1500.
Prices targeted towards the youth and towards the image of fashion accessory
rather than just a carrier.

PRICE RANGE

PLACE (DISTRIBUTION) STRATEGY

We will start selling our products through the multi brand outlets.
Tie-Ups with Multi-Brand Outlets like Lifestyle, Westside & Shoppers Stop.
Online Selling through portals like Jabong, FashionAndYou, Bagskart and other

fashion online sites.


We plan to go for EBOs in future after getting a positive response from the
customers.

PROMOTION STRATEGY

Print media for advertisements in magazines & trade journals


Presence on the Social Networking
Online advertising through networking portals like Face book and twitter

ATL & BTL Activities


Merchandising & display in retail environment
Promotional activities & events

FUTURE STRATEGIES

Establish Exclusive Brand Outlets across India.


Expansion of domestic market in India.
Make a foray into customization.

GLOBALLY LAUNCHING A PRODUCT

Global companies today face the problem of initiating a global product launch, the
situation of which has been further complicated by the changing global structure. A
central characteristic of this is varied cultures, and, more importantly the multicultural
situation of nations today. Companies are under more and more pressure to speed up
the commercialization of new products in order to increase product lifetime and costeffective value, at the same time keeping up with the changing trends of the industry.
The major challenge in an international product launch is to ensure you deliver current
and accurate product marketing materials to distribution channels, retailers and salesteams securely and cost effectively.
Other challenges in an international product launch include:
Addressing costs associated with a decentralized, in-country model

Supporting public relations across multiple markets


Ensuring international product requirements for Engineering, QA, Marketing and
Sales are met
Planning for multi-language press tours, seminars, product presentations and training
sessions
Ensuring consistent testing and qualification
Other challenges include; meeting growth targets include changes in consumers
demographics, increased competition in mature markets, and increased spending on
services, and the rise of private labels and the low success rate of new brands.
The Oxford University Press defines global marketing as marketing on a worldwide
scale reconciling or taking commercial advantage of global operational differences,
similarities and opportunities in order to meet global objectives. (Oxford University
Press Glossary of Marketing Terms).
Marketing constitutes the core of an international product launch. The strategy
involved can make or break a product.
Marketing constitutes the core of an international product launch. The strategy
involved can make or break a product.
The perfect international product launch involves managing the development and
support of complex products and services throughout the entire lifecycle from product
design to product build to post-sale service. It includes the integration of traditional
new product introduction (product innovation, design and collaboration) with sourcing
and procurement, supply chain planning and execution, and service the entire
product lifecycle.
The importance of being first to market is very crucial in an international product
launch. Besides the instinctive idea that it is best to be first, other measurable benefits
are possible for those that get to the market sooner with innovative products and
services.
As product lifecycles continue to decrease, compressing development cycles and
accelerating new product introductions are becoming critical. Product complexity is
also increasing substantially, making development and product introduction even more
challenging.

BASTA: 10 STEP LAUNCH PROGRAM


1. Evaluation of local market opportunities
In order to leverage local market opportunities, a pre-launch analysis of the
competitive space and customer demand in key country markets is a necessity. Basta
will not risk missing out on new opportunities to increase international revenue by
avoiding a market check-up prior to the global launch. Existing and emerging markets
around the world can offer hidden opportunities for expanding global market reach. In
order to develop a revenue plan that supports global launch objectives, Basta will look
into the market data to build a strong business case and secure budget for local
markets.
2. Creation of a global plan and roadmap

Bastas global launch plan provides a clear vision and roadmap to facilitate execution
by cross-functional and cross-regional teams. It will to be developed and delivered at
least 4-5 months prior to launch to ensure effective execution through timely adoption
of messaging, strategies, and production of deliverables. Drafting Bastas global
launch plan also provides the opportunity to engage teams worldwide. Basta team will
ensure early input from key functional and country teams who will drive global and
local marketing, communication, and sales readiness activities. Objectives,
milestones, and success metrics will be realistic, time-sensitive and locally adaptable.
The launch manager will collaborate with teams and ensure early participation in
launch efforts. In addition to key
objectives,
strategies,
and
tactics, the plan will include a
timeline and a checklist of core
deliverables
that can be
reviewed for country marketing
and localization needs.
3. Designing an effective
launch process worldwide
Bastas market success will be
dependent upon its internal
infrastructure and its ability to
coordinate a centralized strategy
with local execution. This will
be determined by its ability to
build a launch management
framework and process where it
will leverage internal team
knowledge, manage project
flow, and effectively deliver product on time and on budget in every part of the world.
Not a small task! Basta will build a global roadmap that accounts for key milestones
in the global readiness areas of product, marketing, communication, and sales. Basta
will then utilize project management tools to develop key roles, responsibilities, tasks,
and timelines that support the roadmap including the critical dependencies for
meeting global launch objectives. Our deliverables matrix will include key
globalization, localization, and translation dates for completion of marketing and sales
tools required for local markets. And we will now be ready to execute.
4. Engaging launch teams across cultures | Networking strategies
When launching Basta, a successful outcome will always be dependent on team
alignment. We will ensure understanding, participation, and ownership from crossfunctional and cross-regional team members. Building our network of team members
across functions and cultures takes careful planning and relationship building. A
constant Check in with our team members around the world and create a networking
strategy is the first and foremost step. Bringing out the organization chart and identify
our key drivers and influencers for the following: 1) Strategy Team (Executive

sponsors), 2) Core Team (Cross-functional and cross-regional members), and 3) Local


Team (country marketing managers).
Basta will then be prepared to assess its networking space. We will organize the
appropriate foundation to build a network across the organization. Followed by
making sure everyone is aligned with your launch objectives. Making our core team
onboard and committed to the project. Helping the launch management team align
with influential groups within the organization. And finally, ascertaining the Americas,
EMEA, and APAC regions are aligned.
5.
Communicating
across
functions and cultures
When communicating around the
world, Basta will ensure that it
aligns teams and manages time
zones effectively. In order to
maximize awareness, interest, and
participation in the global launch
Basta will have a communication
strategy that will engage team
members in the Americas, EMEA,
and APAC. This strategy will
address when communication takes
place, to whom it should be
communicated, and what will be
communicated during the launch
process. Bastas communication
strategy will engage crossfunctional and cross-regional team
members through the use of regular
and consistent communications.
6. Testing Bastas message and
image
There are many global marketing
mistakes that have been made by
well-intentioned global strategists who assumed similarity rather than difference. In
Taiwan, the translation of the Pepsi slogan "Come alive with the Pepsi Generation"
was presented as "Pepsi will bring your ancestors back from the dead." Nike offended
Muslims when the "flaming air" logo for its Nike Air sneakers looked too similar to
the Arabic form of God's name "Allah". Microsoft offended customers in Latin
American markets when a Spanish language version of XP Windows asked users to
select their gender between not specified, male, or bitch (for example,
hembra means woman in Venezuela while it means bitch in Nicaragua). To avoid
embarrassing and costly mistakes, Basta will ensure that it works with a recognized
translation service and review the final copy and image with our country-marketing

manager for context and relevance.


7. Internationalizing customer communications
One way to leverage resources and reduce localization costs is to internationalize
communications. This simply means
that key international messages are
incorporated into global communication
vehicles created at Bastas headquarters
in order to benefit international offices
and local markets. The international
message supports local marketing
efforts by country managers. It also
positions the company as a global
player. This includes references to a
worldwide
rollout
and
product
availability in key geographic markets
in the worldwide announcement.
References to country-specific success
stories and the use of analogies and
examples that will be understood by an
international
audience
will
be
considered.
8. Ensuring timely and localized
deliverables
Since increasing global market reach is
a growing priority for Basta, we are
starting to pay more attention to local
marketing needs. Our global marketing strategy, which succeeds in avoiding local
customer rejection, will focus on localized products and marketing tools. Our bags
will address local requirements for design features, packaging, and pricing among
others. Marketing positioning and messaging will consider the language, tone, and
imagery. Internal teams will select and design culturally appropriate communication
vehicles determined by language, terminology, design, color, style, format, and
delivery.
Timing is a critical component for ensuring effective support and execution on
announcement day and post-launch. In order to provide the local marketing and sales
teams with the means to succeed, Basta will ensure that translated and localized tools
meet an early production timeline to guarantee delivery prior to launch.
9. Delivering effective support tools to ensure global readiness
Bastas marketing and sales teams will be aligned in every corner of the globe. Sales
team members will be engaged early in the launch planning process in order to
achieve launch objectives for sales readiness, sales tool development, and customer
engagement. An inventory of sales tools will be reviewed and selected for relevance
and value in supporting local marketing initiatives. An important and often overlooked

opportunity involves the development of international customer references and local


success stories. Active use of quotes and testimonials from international customers
will be extracted that will help the country teams accelerate sales and positions the
Basta as a global player.

10. Enabling local sales teams through training


Basta will be getting ready to launch and our sales team will speak the same language.
We will ensure the same message in different countries. When ensuring sales
readiness globally, Basta will to develop awareness, understanding, and knowledge.
This will be accomplished by targeting local training needs and resources. When
planning for local sales readiness, Basta will secure time and availability from product
managers, trainers, and thought leaders who can travel to the regions. In addition to
field communication and support tools, a series of education activities will reach all
members of the worldwide sales force. Rapid e-learning sessions followed by live
training for each region will ensure that sales teams are ready to go at launch.
Time to market, efficient processes, and knowledgeable teams will be the core of
global launch and market success. When reviewing our global readiness checklist,
Basta will ensure that they have the capabilities to secure timely delivery through
strategic planning, effective communications, operational efficiency, and globally
responsive teams. Basta will create a global launch plan and roadmap for both global
and local needs. We will communicate effectively with teams across functions and
cultures and educate teams to connect with local and global customer needs. We will
leverage internal resources while increasing understanding and participation within
our organization. Bastas global launch readiness will be its competitive advantage
and well enjoy increased marketing and sales results around the world.

Our launching will happen through tourism fairs internationally.


Philanthropists and celebrities will endorse our bags and
showcase them on their social media accounts garnering
attention for Basta.
This will be followed by exporting as per demands.