CASE FACTS

 Started in 1978 in Pondicherry, India by Dilip Kapur and

was the only non-Italian leather industry then
 Leather handbags were its flagship product with its core
value proposition being “Real leather. Crafted the
forgotten way”
 An early milestone was the London department store
chain John Lewis stocking its merchandise is 1985
 Pricing for Hidesign was premium, but well below that of
the expensive Italian bags
 Leather garments were added to the portfolio in 1988
 Full fledged manufacturing plant was established in 1990
 Louis Vuitton acquired a stake in Hidesign in 2007
 Its product portfolio included Handbags, office bags,
travel bags, wallets, garments, belts and other accessories
 In 2010 announces its plans to extend the brand into non-
Leather product categories like Sunglasses and pens

Questions to be addressed : Now that Hidesign has announced brand extension

into non-leather products, would this inadvertently dilute or erode the High-end leather
brand identity of Hidesign ? Would this brand extension transform Hidesign into a
lifestyle brand and outgrow its core product category ?
 CORE BRAND ASSOCIATION

Stylish and
Sophisticated

Innovativeness Eco-friendly

Craftsmanship
Ethical

Quality
 SWOT
Strengths Weakness
 Premium brand but well below  Comparitively higher price
that of the expensive Italian bags making it operate only in niche
 High quality and Ecological premium segment of the Indian
values market
 Association with Paris-based  Handbags were not considered
fashion house Louis Vuitton trendy or cool
 Global presence and its
association with channel partners
like John Lewis, Myer etc
Opportunities Threats
 To further strengthen its online  Counterfeit trade especially in
presence China and India
 To establish themselves as a  Increasing competition from new
lifestyle brand than just as a players like Lavie and Da Milano
leather products brand
 Expand its retail footprint in fast-
growing economies
 GROWTH SHARE MATRIX
Premium pricing of Hidesign product
High
ensures significant return
Growth rate

Increasing competition from new

players ( Lavie & Da Milano)
Leather
low

products
Necessary to maintain market share to
earn steady profit
High low
Relative market share
Out of the lifestyle products Sunglass
has the maximum potential

To sustain high competition in this

category Hidesign needs to invest
heavily
 PRODUCT LIFE CYCLE
• Luxury lifestyle products are in the growth stage
of PLC
• Increase in disposable income leading to more
demand for luxury accessories
• Attracting more competitors specially foreign
fashion brands
• It has consequences on marketing strategy of
Hidesign

More variety of products should be introduced in line with current positioning

Distribution reach should increase and more outlet should be opened

Promotion directed towards increasing brand visibility should be launched

Price has to be inline with its luxury offering - lower than designer collection but higher than
mass products
 4Ps
• Leather Products •EBOs
• Handbags •MBOs
• Garments •Department Stores
• Accessories •Shop-in-shops
• Non-Leather •Outlet at Airports and
• Sunglasses five-star hotels

Product Place

Price Promotion

• Premium products • Emphasized design

• Just below the and craftsmanship
designer market and • Product centric print
just above the mass ads
market • Geography specific
 STP ANALYSIS

Segmentation
• Demographics: Age , Income, Sex
• Geographic: International/Regional
• Psychographic: Values opinions, Attitudes, Activities and lifestyle
• Behavioral: User status, Usage rate, Usage Occasion

Target Market
• Demographics: Age 25-45, High Income Group, Career aspirants
• Geographic: Emerging Markets
• Psychographic: Value for quality and commitment to nature
• Behavioral: Travel frequently, Seeks durability

Positioning
• Affordable Luxury
• Stylish and sophisticated design and fine craftsmanship: “Real Leather.
Crafted the forgotten way”
POSITIONING STRATEGIES

Positioning by Attribute

Positioning by Price/Quality

Positioning with respect to Use or Application

Positioning by the Product User

Positioning with respect to a Product Class

Positioning with respect to a Competitor

 HIDESIGN’S POSITIONING
Positioning by ATTRIBUTE

Luxury brand, perceived to be ‘high quality’

Product Centric Ads

Real Leather. Crafted the forgotten way

Sophisticated, natural, hand-crafted products

Price above mass products and below premium products

Partnership with Louis Vuitton beneficial with this

strategy
 CUSTOMER FEEDBACK

Feedback from Quora and mouthshut.com

 COMPETITOR ANALYSIS
• Da Milano • Rayban
• Lavie • Oakley
• Provogue

Handbags Sunglasses

Luxury
Pens
Brand
• Louis Vitton • Mont Blanc
• Gucci • Visconti
• Coach • Cartier
• Ferragamo
COMPETITOR ANALYSIS- HANDBAGS

Points Of
Points of Parity
Difference
• Eco friendly • Caters to
• Ethical premium segment
• Affordable luxury • Premium pricing
• Handcrafted bags • Elements of
• Hand polished Italian luxury and
brass fittings desirability
• Brand that • High quality
emphasized
design and
craftsmanship
 BRAND EXTENSION

Convert to a luxury
Diversification Category Extension
brand

Hidesign’s venture into Pens

Brand seen as and Sunglasses will be a
prototypical of
product success based on the 3
category parameters identified on the
Parent brand General left. Consumers who are loyal
has favorable attitude
consumer towards brand to the brand Hidesign, will
association extension most likely be interested in the
new offerings provided by it.
Successful But at the same time since
brand Hidesign is quintessentially
extension
recognized as a handbags
brand, it can be perceived as
prototypical of handbags.
 BRAND POSITIONING- Sunglasses

Customer
Preference
Capitalize on the
brand image of
Hidesign. Emphasis
Functional Symbolic should be on the
Benefit Benefit emotional aspects of
the brand because
customers in this
Hidesign should here focus on the category are brand
functional aspects of the sunglasses. loyalists. Hidesign
Emphasis should be on craftsmanship must position itself
of the sunglasses and attributes like as a premium brand
stylish, light and modern designs should and ownership of the
be brought out sunglasses is
perceived as a matter
of prestige
 RECOMMENDATIONS

Sell sunglasses and pens initially through EBOs alone

Same tagline for leather products

No new tagline for sunglasses

Emphasize more on craftsmanship and style

Capitalize on the prior experience of Ayesha Accessories

Bring in more Competitive Points of Parity (Eg: Leather trimmings)

Thank you