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
