24753038 ARCHIES the Way Indians Greet

7/31/2019 24753038 ARCHIES the Way Indians Greet

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ARCHIES-The Way Indians Greet

Group-3Rohit Mehrotra 08EM-036Gagan Aggarwal 08EM-17

Ankur


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Introduction Archies was established in 1979 by a Delhi Based person named AnilMoolchandani and his brother Jagdish Moolchandani .In 1984 ,company launched its first outlet in Delhi named Gift Gallery . In 1987 ,the first exclusive Archies gallery was set up in Kamla Nagar,

situated in the heart of the Delhi University Campus.In 1990, the brothers established Archies Greetings & Gifts Pvt.Ltd.with its three product lines i.e.Greeting card,gift items & stationaryproducts.In 1994, Anil decided to install a printing unit for the company and tied

with the US based Gibson card manufacturing company.In 1995, Archies was incorporated as a Public Limited Company with itsinitial Public offering of Rs.74 million.


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Share of Revenue

Archies

Greeting Cards69%

Gift Items15%

Stationary16%


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Archies Stores Archies Gallery First Concept Store opened by Archies, typically

500-1000 sq.ft in size

Archies- The Card Shop Smaller in size than the Archies Gallery.

Paper Rose Shoppe Shops with an area of 100-150 sq.ft. with around 85%of Archies merchandise.

Archies Feelings Chain of greeting card and gift outlets in th state of Gujarat.

Premium ArchiesGalleries or Vision 2000Stores

Exclusive Archies showrooms housed at prominentlocations , spread over a lager area with lot more shelf space than the other outlets.


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Critical Success Factor Archies sold its products through franchisees.The Franchisees made their own investment in the business andpaid royalty to Archies for turnover.

Archies Quality Control team monitored the franchise stores for

ambience, space allocation, lighting and display.Divided the franchise operations into three segments.The Top-level franchises ran the Archies Galleries.The middle level franchisees ran the Archies Card shops andpaper rose shoppes.The bottom level, and smaller franchisees operated the feelingsand other retail outlets.

Adopted Localization strategy and come out with the cards for Indian festivals such as Holi, Diwali and Rakshabandhan.


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Contd Backed by aggressive promotional campaign to create awarenessand persuade people to communicate through cards.Successfully managed to built a strong brand Equity with its Tie-upswith companies like Pepsi and Pidilite.


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PESTEL FRAMEWORKPOLITICAL AND ECONOMICAL-

New IT policies introduced.Increase in purchasing power.

SOCIAL -The society was adopting the western culture and ideas.The changing lifestyle of the people.

TECHNOLOGICAL-Use of internet for marketing.Use of internet as a means of networking.

ENVIRONMENTAL-Govt initiative to save on paper.


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Strategic Move Archiesonline.com had three major sections Meet, Greet andGift with following services :Meet- Free e-mail , chat , reminder services ,greetingsscheduler.Greet-A consumer interaction area where registered customerscould send and receive a variety of animated e-cards/greetingsonline.Gift-Purchase gifts an get them delivered at their doorstep.

Tied-up with Elbee and Blue Dart to deliver the gifts and cards

and with Easy Net.com for payment gateway.

Entered into strategic alliances with Yahoo.com, Jaldi.com,Indiagreetings.com to secure online penetration in various youthoriented portals by leveraging the Archies brand equity.


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Strategic Move Contd..New franchisee contract included a clause that demandedfranchisee to commitment of 30-35% growth annually.Stores with prime locations were given minimum business guranteeor commission on sale.

Hoped to offset higher cost of owning retail infrastructure bysubstantial saving in trade.


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The OutcomesDiscovered that the company made no monetary benefit andventure was proving to be a drain.Decided to make archiesonline.com a paid site.Snapped ties with Yahoo and tied up with Indiatimes.com with a

50:50 agreement.Ran a nationwide ad- campaign to spread the idea of equate e -cardswith fun. Decided to treat online venture as an extension of its business.C&F agents were unable to exploit the market properly.

Company appointed C&F agent for a particular territory whoappointed various area wise distributors.Took back all stock with distributor during conversion stage whichincreased the inventory and therefore the working capitalrequirement forcing company to outsource funds and incur heavyinterest burden.


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Contd..Investment in real estate went up as a result of new initiative of Vision 2000 stores.

As a result, the companys revenue were Rs.804.7 million anincrease of 18% but the profit declined to Rs.75.3 million.


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The Road AheadDecided to focus more on gift segment.Make Archies gallery a one stop gift shop. Emphasis on outsourcing high end gift articles.Focus on corporate sector.

Planned to launch a new range of economy cards (priced aroundRs.10) called Heart Warmers for small towns. Plan to have 100 Vision 2000 stores which will contribute at least40% to sales, C&F to contribute 40% to sales and the balance tocome from distributors .


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24753038 ARCHIES the Way Indians Greet