Are we In The Business Of Greetings??

Case study on: Archies & Vintage cards.

ARCHIES

CASE BACKGROUND: Archies Greetings & Gifts Pvt. Ltd. was took over as the partnership firm on 22nd May in 1979 by Anil and Jagdish Moolchandi.  In 1979 he started selling greeting cards and posters through mail order. In 1987 set up first card gallery & same year started franchising their name. 

By 2005 archies had far outgrown the identity of cards and was percieved as the company with complete gifting solutions. After practicing different strategies by archies was seen moving from single product focus company to a serious player in many other related categories encompassing human expressions. 

MISSION STATEMENT
We are in the business of emotions, and Emotions never die. We have been churning out a thousand reasons to smile. And to Celebrate. Not just moments, but life as a whole. Throughout this while, we have innovated better ways of expressing one¶s emotions; Rendered voice, to many a feeling. Crafted words, for many an emotion. Words that have built many a new relationship. Voices that have Strengthened many a bonding.

KEY STRATEGIES
1)Positioning the brand 
Positioning: Image 

Brand associations : Greeting cards and soft toys Gift items for youth

2)Communicating the message 
Promotion: Radio, TV, FM channels, cable and satellite, channels, Hollywood movies, Hindi movie, Occasion cards. ³The most special way we care´ Focused on sentiments, feelings, & emotions 

Campaign: 

Social cause:

Tie-up with NGOs (Help Age India, Child Relief and You, etc.)

Delivering the performance 
Product focus: Advancing social expressions, and products at different price points 

Distribution coverage : ³Archies Gallery´ stores, organized franchising

Leveraging the brand equity 
Brand extension: Key chains, wide range of stationery, gift items ,crayons for kids, jewellery etc., -tie up ³RUSS´ & ³FLORENCE´

SWOT Analysis
STRENGTHS-First mover advantage. -Tie ups with corporates. -cards in various regional languages.
-Occasion cards launched (Raksha Bhandan, Holi , Eid , Karvachauth ).

‡ Weaknesses

- Margins in gifts were low as they were outsourced. - Expensive promotional activities

‡ OPPORTUNITIES
- Changing Mindset of Indians. Providing an opportunity for more occasion cards and gifts. - Increasing disposable income of India providing and opportunity to expand the markets , and Expand the Product lines in order to become a company that offers complete gifting solutions

-

‡ THREATS

-SMS & MMS culture. - Political environment. (many shiv sena and Bajrang Dal activists vandalized many Archies store on the occasions like that of Valentines Day )

COMPETITOR ANALYSIS

WHICH LEVEL DID ARCHIE FACE COMPETITION AS PER THE CASE ?
- Companies offering only similar products. (Hallmark) - Competitor consists of all companies manufacturing or supplying products which deliver the same service. (e-greeting, SMS ,MMS)

Competitor analysis
1.Threat of new entrants Moderate -Strong brand image to overcome. - Barriers to entry, not too high.

2. Power of buyers High - Large number of suppliers, including the global ones. - Alternative sources of supply, eg- Increase the Indian suppliers.

3. Threat of substitutes High -Substitutes: such as SMS , MMS , free e-cards, Chocolates etc

4. Extent of competitive rivalry

Moderate - As the case states ³In 1996 , when hallmark
entered the Indian market, Anil was far from perturbed. He is noted to have said it does not pose a threat to us ; in fact we need more companies to strengthen the market and went ahead with new launches

5.Power of suppliers Moderate - As the suppliers were many. - Cost of switching suppliers : Not much of a factor.

Problems
‡ The advent of E-greetings , sms, mms. ‡ outsourcing.

solution
‡ Tie-ups with telephone service providers to come with something like archie s Images, archies mms. ‡ Look for more economical source as suppliers for gift items. (for e.g indian suppliers)

Best alternative

‡ Diversify in more product lines in order to keep the archies flag floating high.

Vintage Cards And Creations

About the company
‡ Founded by Anil Kapur & Rajes Vaisnav in the year 1983. ‡ Manufactures and markets cards. ‡ 3000 designs, 26 distributors and 3000 independent retail outlets. ‡ Agreement with Hallmarks cards, Walt Disney consumer Products, gordon Fraser Gallery. ‡ Aggrement with Mattel Inc for rights of Barbie brand. ‡ Cards in different languages.

Mission and objectives (1983-1992)
‡ MISSION
± TO CREATE AND PROMOTE GREETING CARDS THAT ARE UNMATCHED IN THE FIELD Of QUALITY DESIGN AND SERVICE.

MISSION STATEMENT (1992 ONWARDS)
‡ To provide our customers with products, keeping high benchmark in the fields of quality, service and design.

KEY STRATEGIES
1)Positioning the brand 
Positioning: competitor positioning Brand associations : Greeting cards and soft toys Gift items for youth

2)Communicating the message 
Promotion: Not very intensive. 

Social cause:

Tie-up with NGOs (Cancer Patients' Aid association.)

Delivering the performance 
Product focus: quality and design Distribution coverage : 343 outlets across 115 cities

Leveraging the brand equity 
Brand extension: tie ups- Hallmark, Walt Disney,Verkerke, Barbie, Brownsword, Gordon Freser Gallery and Forever Friends´

SWOT ANALYSIS
‡ STRENGTH
± Designs and quality ± Stringent parameters for franchises ± Agreement with world s leading business houses In the field of gifts and consumer product. ± Strong distribution channel

‡ Weaknesses
± No cost reduction practice. ± Failure to understand market demand.

‡ Oppourtinities
± Growing Economy ± Changing mindset of indians

‡ Threats
± e-greetings ± Religious fundamentalists

5 Forces analysis
‡ Threat of New Entrants:

MODERATE -low capital required -medium brand image to overcome -distribution cost moderate

‡ Threat of Substitutes

HIGH -Substitutes: such as SMS , MMS , free e-cards,
chocolates etc.

‡ Power of Buyer

Moderate Many suppliers Alternate sources

‡ Power of Supplier

Moderate ‡ Alternate suppliers available ‡ Cost of switching not much

‡ Extent Of Competitor rivalry

Moderate The market was large enough to absorb many more competitors.

Problems
‡ Accumulated inventory of cards and posters equal to exceeding 4 yrs. ‡ No cost cutting models. ‡ Price fall ‡ E-greetings, sms, mms

Solutions
‡ Market research ‡ Tie up with telephone service providers. ‡ Make their presence felt in the internet.

Best alternative
‡ Market Research

Thank You

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