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Are We in The Business of Greetings??: Case Study On: Archies & Vintage Cards

Vintage Cards and Creations is a greeting card manufacturer founded in 1983. It focused on high quality design and had agreements with major licensors. However, it faced challenges from accumulating excess inventory, failing to cut costs or adapt to new technologies like e-cards. To improve, it could have conducted market research, partnered with telecom companies to offer digital greetings, and strengthened its online presence.

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1K views40 pages

Are We in The Business of Greetings??: Case Study On: Archies & Vintage Cards

Vintage Cards and Creations is a greeting card manufacturer founded in 1983. It focused on high quality design and had agreements with major licensors. However, it faced challenges from accumulating excess inventory, failing to cut costs or adapt to new technologies like e-cards. To improve, it could have conducted market research, partnered with telecom companies to offer digital greetings, and strengthened its online presence.

Uploaded by

bhoopendrat
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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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 one’s 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.

Campaign: “The most special way we care”


Focused on sentiments, feelings, &
emotions
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

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