ARCHIES Vs VINTAGE

Are we in the business of greetings?

BACKGROUND

BACKGROUND
‡ The case talks about two firms in Greeting Cards business named Archies and Vintage which started in the year 1980 and 1983 respectively. ‡ Decline growth in greetings segment for the past 25 years and increased growth in the gifts segment has become the concern for its entrepreneurs.

ARCHIES

ARCHIES
‡ Archies Greetings and Gift Ltd.(AGGL), is India¶s largest manufacturer and distributor of greeting cards, posters, soft toys, gift items, cassettes or CDs and stationery items. ‡ Anil Moolchandani(founder) was interested in the business of hearts. ‡ The card business started in 1980.

ARCHIES
‡ The first Archies Gallery was set up in the year 1987 in the heart of the Delhi University campus. ‡ Core Business- Greetings Card ‡ Complementary Business- Gifts and Perfume.

ARCHIES
VISION An Archies card in every hand.¶ MISSION Archies¶s mission is to be in the business of emotions.

STRATEGIES FOLLOWED 
Introducing the first gallery in the heart of the Delhi University.  Innovation of products with special offer and promotional schemes.  Entering into corporate social responsibility by joining hands with Help Age India and CRY(Child Relief and You).

STRATEGIES FOLLOWED 
Introduction of occasion cards.  Launch of regional languages cards.  Relationship with American Greetings.  Complementary Businesses 
Alliance with Cadbury India & Taneja Mines  Perfume Business, Gift articles, Kids Stationery.  Jewellery , Fashion products through the tie up with Normak.

STRATEGIES FOLLOWED 
Promotions 
Tie-up with Walt Disney. Use of props in feature films like Maine Pyar Kiya, etc. 

Expansions 
Domestic; more than 450 franchisee stores. Foreign; 425 franchisee stores across 6 countries. 

Importance to C&F agents.  Introduction of archiesonline.com.

RECOMMENDATIONS 
Increase of promotional activities. 
T-shirts.  Online proportions  Increase in effective advertising 

Opening up of stores near colleges and universities.  Occasional of cakes and play stations.

VINTAGE

VINTAGE
‡ A partnership firm founded by Anil Kapur and Rajesh Vaishnav in the year 1983 for manufacturing and marketing greeting cards. ‡ By 1992, Vintage had a collection of 3000 designs, 26 distributors and 3000 independent retail outlets.

STRATEGIES FOLLOWED 
Agreement with Hallmark cards.  Focused more on local customers.  Agreement with Walt Disney, to use their products like Mickey, Minnie, Donald Duck for use in greetings, posters, etc.  Agreement with Barbie Brand.  Tie-up with Cancer Patients & Associations.

SHORTCOMINGS 
Over dependency on Hallmark.  Excess inventory.  Operating Loss  Unable to pay the statutory obligations.

RECOMMENDATIONS 
Launch of innovative products.  Less dependency on Hallmark.  Adoption of new technologies required.  Lower the price to clear inventory.  Use of gift items provided by the acquisitions to a great extent.

THANK YOU
RAVENSHAW MANAGEMENT CENTRE

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