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 ones 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. The 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 : Archies 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 RUSS & FLORENCE

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 In 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