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The DiscoNinjas

The DiscoNinjas. CASE STUDY. Jamnalal Bajaj Institute of Management Studies. Hardik D. Shah Kaushal Dedhia Vikram Joshi . Agenda. Situation Analysis. Current Composition of H andbag Sales. Most of the customers are SEC A, living in Metro cities Own a Four wheeler

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The DiscoNinjas

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  1. The DiscoNinjas CASE STUDY Jamnalal Bajaj Institute of Management Studies Hardik D. Shah KaushalDedhia Vikram Joshi

  2. Agenda

  3. Situation Analysis Current Composition of Handbag Sales • Most of the customers are SEC A, living in Metro cities • Own a Four wheeler • Own a smart phone • Use Laptops / Tablets As per our primary research, customer segment starts above 25 and extends till 40 Consumer Competitors Value Same TG? Handbag Market Size • Key Growth Drivers: • Increasing number of working women • Rising incomes • Increasing fashion consciousness and aspiration levels • Growing influx of foreign brands • Increasing number of malls and modern retailing outlets Growth: 10.4% CAGR Unorganized sect: 60-70% Market • 100% pure leather to gain the ‘Trust’ to build a sustainable brand Existing 23 – 35 years New 25 – 40 years Target Group Correction Source: euromonitor.com, primary research

  4. Understand The Customer Occasions of Use: Meetings, Socializing, Going Out with Friends, Party Occasions of Purchase: General, Gift events, Sale Stimulus of Purchase: Occasions, Replacing worn/old product Age: 27 – 40 Gender: Female Location: Metros SecA Type of Stimulus: Emotional Need: To look trendy, stylish Products: Handbags / Purses / Clutches /Wallets for all occasions; Belts, Shoes Repeat Purchase Inhibitors Brand Recall - Trust Top 3 key buying factors Source: Mckinsey Insights 2011 – Luxury Consumer report and Primary Research Source: Primary research with store visitors, Da Milano’s feedback books 1. Want to try and have a wardrobe of different brands 3. Good Material 2. Need a separate product for every occasion 2. Innovative Design 3. Do not have a connect with the brand 1. Superior Craftsmanship 4. Lack knowledge about new arrivals / sale periods Need: Utility while maintaining status quo ; To GiftProducts: Wallets, Belts, Shoes, Manbags, Folders Age: 27 – 40 Gender: Male Location: Metros SecA Occasions of use: Meetings, Everyday Office, Socializing, Party , Travel Occasions of Purchase: General, Gift events, Sale Stimulus of Purchase: Occasions, Replacing worn/old product Type of Stimulus: Rational, Emotional

  5. Challenge : Marketing Strategy Purchase Decision Influencers: 1. Celebrity Trends 2. Fashion Magazines 3. Internet Research Distribution Channels: Own outlets to maintain exclusivity & counter counterfeits : FOCO / COCO Value Proposition: Premium designs handcrafted with 100% pure leather : Trust Vision : To be first choice in Luxury Leather Goods Secondary Associations - Create Primary Brand Elements - Maintain • Name : Da Milano • Logo : Deer • Symbols: DM • Packaging: Elegant • Personalities: In film / twitter female actors • Events: Wine tasting, Fashion shows Strategies to Increase Brand Recall Strategies to Increase Repeat Purchase • Connect Da Milano to 100% pure leather • Build on core value of “Trust us for leather” • Gift leather products to celebrities • Run features in fashion magazines • Know customer preferences and remind • Brand extension for more categories of purchase • Campaign on Changing Trends per season • Complete your wardrobe with different products • To ‘push’ repeat purchase across categories quarter-on-quarter • To ‘pull’ repeat purchases on the same category year-on-year • Modernize experience • Enrich experience • Learn trends / likes • Maintain relations • Inform new trends/ stock • Bring back to store • Infuse Quality of Trust • Top Of the Mind Recall : DM = leather Trust Genuine Leather Premium Craftsmanship

  6. Deliverable : Strategic Roadmap Goals Q1-15 Future Q4-14 Q3-15 Q4-15 Q1- 14 Q2 -14 Q3-14 Q2-15 Brand Extension IMC Campaign Integrated Marketing Campaign Advertising ATL / BTL Launch of new product ] 75 50 25 Repeat Purchase QoQ On Going BTL Cost / Benefit Stock Clearance Sale Quarterly Trigger for Repeat Purchases Stock Clearance Sale QoQ repeat purchase rate > 60

  7. Need Gap & Brand Extension • Launch of new products, to suit occasions of use and occasions of purchase unaddressed by existing portfolio • Conjoint Analysis Suggests following brand extensions Watches, Jackets, Hats & Gloves • Based on primary research, we found most consumers would want Watches Challenge : Economies of Scale 1. Watch straps will utilize the small side strips remains 2. Jackets, Gloves etc. will be produced in parallel with more RM order quantity at EOQ 1. Recycle Da Milano leather for corporate gifts 2. Reduce RM costs and import costs over RM 1. Order RM so as holding cost does not exceed 50% of net profits 2. RM types should be kept at minimum to reduce overhead costs in import Launch of New Products Recycle Procurement

  8. Deliverable : IMC Campaign Brand Recall Scatter Map: Leather Goods Objective To increase top of the mind brand recall and associate DA MILANO with 100% pure handcrafted leather Customer Touchpoints E-mails, Travel exposure Gifts, Word of Mouth Work Friends Magazine Social Media Family Family

  9. Challenge, Deliverable : ATL/BTL Activities : Pre Purchase Advertising Strategy Activities ATL • Print ads in fashion magazine • Billboards in upmarket locations Advertise BTL Increase Repeat Purchases Build Trust • Advertising in 5-star hotels • Airport Baggage tags • In film advertising • Sponsorships • Art / Fashion Shows • Wine Tasting Festivals 100% Leather Replace : Give old bags back / to NGO and get 20% off Associate with stars / films Cost Approximations Discounts Show change in trends Remind need / occasions All figures in Rs. Crores

  10. In-Store Experience : During Purchase 1. Digitizing the Shopping Experience Digital Catalogue Product Selector • Enable customers to choose product via a app • App results will be based upon: • Product type • Occasion • Provide tablets to customers to browse through the catalogue in detail, search and sort • Tablets will also contain 100% pure leather posters • Price Range • Color preference 2. Making the customer feel warm Offer candies to kids Serve beverages on arrival Greet the customers on arrival and departure 3. Wishlist Section Product Attributes • Consumer Behavior : • Tag WISHLIST products with customer info • Save common attributes of shortlistedproducts and tag to customer • Each quarter and purchase occasion, send customer SMS/mail : Offering products : from his WISHLIST / with similar attributes Colour Texture Occasion Size Dedicate a rack to the most ‘aspired’ products across WISHLISTs Price

  11. Ownership Experience : Post Purchase 1. Use the Wishlist • Every quarter, send SMS/mail suggesting products to customer based on his/her wishlist • Send reminders for purchase occasions : birthdays, rakshbandhan, mother’s / daughter’s day, anniversary • Whenever items in new stock arrive > Search for items that match attributes liked by the customer > Send SMS / mail displaying product and inviting him/her to take a look • Update about changing trends 2. Servicing • Send SMS/mailer to the customers stating: • “Your free service with Da Milano is due now. Visit any nearby store for the same” • “Get your Da Milano product serviced before Diwali / Christmas / any other festival. Its absolutely free as per our lifetime warranty program” 3. Loyalty Programs • Incremental Benefit Loyalty Program10% off on first 5 purchases >> 50% off on very 6th purchase • Birthday and Anniversary GiftsBag KeychainsBag Car Plushies : Hanging from car mirror and can hold cellphones etc. 4. Replace Program : Return bag to NGO, get 20% Off*

  12. Conclusion Economies of Scale Increase Repeat Purchases Increase Brand Loyalty & Recall Problems EOQ Push Across Categories QoQ Brand Extension Pull Same Category YoY Build core value of TRUST Solutions Purchase Experience Recycle RM Make Watches 100% Leather Post In Pre Service IMC Digitize Hand Crafted Implementation Advertising Enrich Remind Loyalty Wish list Premium Push Across Categories QoQ Pull Same Categories YoY Reduction in Cost Repeat Purchases > 60% QoQ Increase Brand Recall form 7% to 15% Impact

  13. Appendix – I Primary Research Financials All figures in Rs. Crores

  14. Appendix – II In Flight advertising estimation Print & Billboard estimation Source: www.themediaant.com

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