ARCHIES: THE WAY INDIANS GREET

Flow of the presentation

Introduction Corporate Clients Retail channels Question 1 Question 2 Question 3 Question 4 Conclusion References

Introduction

Anil Moolchandani and his brother Jagdish Moolchandani started a partnership firm ‘Archies Gifts and Greetings’.

Theme cards being introduced such as Valentines Day, Friendship Day, Father’s Day, Mother’s Day and so on.

In 1984, They launched the first Archies Outlet in Delhi named ‘Gift Gallery’.

In 1987, they launched first Archies exclusive gallery in Kamla nagar in Delhi.

In 1990, Archies Greetings became Archies Greetings and Gifts Pvt. Ltd. which took over the partnership firm.

By the end of 1990s it operated in 3 businessesGreeting cardsGift itemsStationery products

In 1994, International collaboration with American Greeting CorporationGibson GreetingsPortal PublicationKingsley of UK and Kel Geddes of New Zealand

Corporate clients Reliance Samsung LIC Birla International Dabur

4 dedicated branch offices in Mumbai, Ahmedabad, Ludhiana and Hyderabad

Retail Channels Archies Gallery Archies Card Shop Paper Rose Shoppe Archies Feelings Premium Archies Gallery or Vision 2000 stores Other retail stores

In 1995, Archies became a Public Ltd. Co. with an initial offering of Rs. 74 million and the issues were oversubscribed 4.5 times

In 2000, Archies launched its portal archiesonline.com for Archies cards, gifts, stationery, music and perfumes online purchases.

Meet, greet and gift

Question 1Analyse the circumstances in which Anil Moolchandani started Archies and highlight the reason for the company’s runaway success. Why do you think Archies could not sustain its profitability growth in 2000-01

Question 2Critically Comment on Archie’s franchising and distribution strategies for expansion. Do you think the company’s strategies in the initial years was right in the light of the rationalization exercises? Give reasons to support your stand.

Question 3 Do you think the measures taken by Archies to meet the threat of e-greetings were adequate? Was the company’s decision to make its website a paid one, a sound business move? Justify your answer

Question 4Discuss if Archies will be able to maintain its marketshare and leadership in the future with the entry of players such as ITC? Will the company’s current strategies help sustain its competitive position

Survival Strategy• Decided 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 around Rs.10) called ‘Heart Warmers’ for small towns

• Plan to have 100 Vision 2000 stores which will contribute at least 40% to sales

Long Term Strategy Offers and promotional schemes undertaken

Tap all the Indian festivals and occasions

Popularize western occasions in India(Halloween, Easter)

Continuous focus on its USP - Innovation

Promoted their props through Bollywood(I hate luv stories)

Basic idea was to sell emotions Re-indulge in its Dotcom

Conclusion

References

ICMR case studies on Cosumer

Behavior

www.archiesonline.com

Archies commercial from

www.youtube.com

Queries?

Thank you