49148359 Archies vs Vintage

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 FOLLOWEDIntroduction 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 FOLLOWEDPromotions

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

etc.

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

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

RECOMMENDATIONSIncrease 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 FOLLOWEDAgreement 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.

RECOMMENDATIONSLaunch 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