Case analysis

Nappa Dori: Crafting the Branding Strategy

Introduction

Nappa Dori is an Indian Luxury leather brand founded by Sinha who is a self-thought creative

designer from Delhi. It was set up such that it can offer Sinha an opportunity to explore leather as

a base material. This is a case that explains different elements in marketing management,

strategic marketing as well as brand management. It is an exploration of the macro-environment

of luxury markets and gives the way at which the firm’s current and future business strategy in

national and global contexts is determined. Issues that this paper seeks to discuss are the strength

of marketing research, demographic environment and the aspects of introducing a new brand to

the market.

1. How effective was marketing research?

Market research involves gathering, analyzing and interpreting information about the market,

product as well as the service offered by the company. The owner of the business is tasked with

accessing past, present and future trends of the market. Past, present and future potential

customers are a key element to the expansion of any kind of business. Consumer characteristics,

spending habits, location and the need for a target market are necessary. Nappa Dori aims at

expanding to a global market. Nappa Dori for him to understand the market structure and

information, needed a well-crafted blueprint that has all the information necessary for the market

entrance. According to the case study, “The worldwide luxury market was expected to reach

€259 billion3 in 2017 and €290 billion by 2020.4 The leather goods and accessories segment

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 contributed 25–30 percent of the total luxury market5 and was characterized by brands with

well-crafted strategies”. This explains why Dori needed a well-crafted blueprint such that he can

make a decision of entering a new market.

Research indicates that the demand for high-end luxury leather products had risen exponentially

in the Indian market. This gave an impression of utilizing the available domestic market by Dori

company. Competitors such as Louis Vuitton and Hermes indicate that an expansion to the

global market could be successful. Nappa Dori company had identified its target market to be a

young population with higher disposable income. Due to effective research and understanding of

the market, the sales of the leather rise. Among the reasons why the sales were growing includes

a stable economy and a growing number of globe-trotting Indians. According to the report for

market research, the millennial generation will contribute up to 130 percent to the luxury sector

such as leather products. The present and future study of market growth gave an idea of how the

brand can be formulated. Nappa Dori adopts a collaborative model with other luxury brands.

This helps in meeting the preference and the desires of the consumers and thus appeals to the

generation.

Market research exposes new markets for leather products and demonstrates the dynamics of the

market. The knowledge of market change can help a business to adopt a strategy that would

enable an effective operation. From the case, Nirmal Kaur says that “moving away from quick

and compulsive purchases towards more thoughtful acquisitions, they make their own rules,

bypassing big-boxed stores in favor of small, independent retailers. . . .. This explains the

perception, decision making and the needs of the consumers. From his statement, Nappa Dori

learns that a good brand will give consumers a good taste and the reason to purchase from the

company. There are consumers who would mind about the origin of their purchases.

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 The expansion of stores and occupying a new market is an indication of the success and

achievement of a good brand. According to the case study, the expansion to both the domestic

and international markets is a bridge of luxury. The Marketers understood that “that Indian

shopper looking for premium-quality leather offerings that were “a fraction of the cost of the

high-end foreign brands” would definitely look at Nappa Dori”.

2. How to the business achieve its global market goal.

One major goal of the company is to expand its operation worldwide. The owner aims to have

the brand of the company to be recognized globally as an affordable luxury brand from India.

Nappa Dori understood that the brand of the company is a reputation. Branding involves the

consideration of what people think about the business as well as the products offered by the

business. Due to the influence of international brands, Sinha had to integrate ideas from

international and those from the local market such that he can formulate an appropriate brand.

According to the case, the brand name combined Nappa which is the name for a type of soft

leather first made in Napa, California with Dori also the Hindi name for the thread. The brand is

a kind of reputation that carries the image of the company and is always the determinant of the

first impression from new markets. The customer's first interaction with a brand will generate

either a positive or a negative impression.

According to Sinha, the creation of a brand does not necessarily need a skilled individual. Nappa

Dori is a brand created based on passion. In his words, “I have always been more passion-driven.

I believe you can only build a brand if you are passionate about it.” To achieve its global goal,

the brand needs a new strategy that will enable the brand to expand into related categories as

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 well as creating a unique user experience among the consumers. The reason why Sinha wanted to

achieve a recognition of the Nappa Dori brand is such that the company can charge a premium

for both goods and services. It is common knowledge that people will pay more for the brand

which is worldwide recognized as a leader and is a trusted brand. This implies that it both

satisfies the need of the consumers and has earn loyalty from its consumers. Brand marketing

requires knowledge of the market as well as having the necessary capital. Nappa Dori requires

appropriate strategies that will enable the brand to enter the market.

3: Introduction of new product.

The introduction of a new product under the brand Nappa Dori is based on the unwritten rule of

Sinha. He only introduces a new product when there is an opportunity where the consumers are

demanding for a new product. According to the case study, “His brand-product mantra was that

every brand had to realize that it needed an articulated and curated story.” This was a product

that contains integrated ideas based on every person empowered. For Sinha compony, every

employee was entitled to designing a brand. Comparisons are done and an evaluation that

comprises testing at the available storage is done. The key reason for expanding the brand is to

enable the company to have an easy task of introducing a new product. The involvement of the

employees to design a brand or a new product is described as a generation of the idea. Screening

of the idea is done by testing it in the available stores.

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