Introduction
Moolchandani, a graduate from Delhi University, entered his family’s saris business, but soon discovered his passion for greeting cards and emotional connections. In 1977, he noticed a gap in the market for poster making and decided to pursue his hobby by establishing Chellsons in Sivakasi, Tamil Nadu. Two years later, Anil and Jagdish Moolchandani founded Archies Greetings and Gifts Ltd. Recognizing the importance of display and branding, they expanded their product range to include greeting cards, posters, soft toys, gift items, cassettes/CDs, and stationery items through Archies Gallery and Archies Card shops. In addition, they launched a new chain of retail stores called “Stupid Cupid” to cater to women’s accessories and premium gifts. Archies’ core belief is that they are in the “Business of Emotions”, where they aim to convey and share people’s emotions through their products.However, when considering the current offerings and prospects of the company, which include diary, stationery, accessories, etc., two additional pillars of support can be included: the “Business of Relations” and “Encompassing Human Expressions”.
Therefore, it can be said that Archies not only deals with the emotions of people but also aims to preserve them in strong relationships. As a result, Archies is divided into three main categories – Emotions, Relations, and Expressions. (Mital, 2009) Initially, Archies adopted a prescriptive strategy by providing its customers with cards, gifts, and posters, which was highly successful. However, in order to protect itself from external threats such as competition and the growing demand for innovative products, Archies shifted towards an emergent strategy.
Later in 1989, Archies formed a partnership with HelpAge to expand its reach globally, which was a strategic move. (Mital, 2009) For Question 2: Does Archies have an advantage over other greeting manufacturers? What kind of advantage and is it helpful in pursuit of their business? The answer is yes, Archies does have an advantage over other greeting manufacturers. The company benefits from the following advantages: * First Mover Advantage: Archies, being the first company to make greeting cards, has gained revenue and established a strong position in the minds of customers.
After launching Archies Gallery in the heart of Delhi University campus, it assisted them in achieving the break-even point in the first year. Archies Gallery is known for its affiliation with numerous corporate entities such as Sony Corp, Shell Gas, ICICI, Honda Motors, and more. This partnership has helped in introducing new collections and expanding the corporate network. Moreover, the concept of Occasional Cards gained popularity in India through Archies’ efforts. They started creating new occasions for people to celebrate and congratulate each other.
Valentine’s Day, Friendships day, Father’s day, Holi, and various other special occasions contributed 30% of the total sales revenue. Another innovative idea was the use of regional language cards, which helped gain an advantage. Collaboration was also a key strategy. Archies entered into a licensing agreement with American Greetings Inc., allowing them to source designs from American greetings and sell them as Paper Rose. This partnership also provided Archies with access to other product lines under the American Greetings umbrella, such as Gibson, Hanson Graphics, Expression gifts, and Carlton cards. Additionally, Archies collaborated with Simon Elvin, a UK-based greeting card player, to expand their portfolio with more designs and variety. The creation of Archiesonline.com, India’s first website and the world’s first e-greeting site to charge for its services, was also part of their strategy to reach end customers directly. (Mital, 2009) In conclusion, Vintage Cards and Creations is a business established in 1983 by Rajesh Vaishnav and Anil Kapur.
Erstwhile Vintage initially focused on providing Greeting Cards, but they have since diversified their portfolio to include a variety of products. Their strategy has adapted to the changing trends over time. Vintage has formed a partnership with Hallmark cards, a leading global greeting cards company, to obtain exclusive rights to use copyrights for manufacturing, distributing, and selling products. Additionally, Vintage has partnered with Walt Disney to expand the designs of their products. They have also entered into an agreement with Mattel Inc. in the United States.
A was the great help to Vintage for providing “Barbie” brand in India. (Mital, 2009) Question 4: Where have vintage gone wrong? Answer: Blunders which Vintage faced are listed below: * Having a piled up Inventory unutilized for cards manufacturing since 2001 of more than 18 months, which increased expenses of storing and maintaining * Lack of product innovation and variety * Steep decline in operating profits from the year 1999 which was because of increasing network of franchise stores, without studying the market requirement and customers need. * Turning off the Pune plant and shifting to Goa was again a big problem. Vintage was moving ahead on the same path as designed by Archies but Vintage being late in the race was not successful in gaining the popularity in the market. It is well said that “Follow the Leader” strategy in the market doesn’t always work. One should always try to revitalize their brand and product with new and innovative ideas which was lacking with the case of Vintage. (Mital, 2009) Question 5: What can they do to put their business on track again? Answer: Vintage to resume itself in the Indian market should restructure its strategy to fight against its biggest competitor.
Vintage should differentiate itself from Archies and establish its unique selling proposition (USP) in the market. Rather than offering the same products as Archies, Vintage should focus on providing customized greeting cards, gifts, t-shirts, and more. Collecting customer requirements online or through physical stores will attract customers who are looking for new and innovative options.
