Archies - The Way Indians Greet*

            


Details


Case Code : CLBS011
Publication date : 2004
Subject : Business Strategy
Industry : Social Expression
Length : 03 Pages
Price : Rs. 50

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Key words:

e-kiosks, e-greetings, advertisement campaign, ITC, Manikchand, Rotomac, franchisee, ERP initiative, working capital, online subsidiary, distribution network, Hindustan Lever, CavinKare


* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 


Abstract:
ICMR India ICMR India ICMR India ICMR India RSS Feed

The caselet examines the growth of Archies, leader in the Indian social expression industry. It explores the company’s franchising and marketing initiatives. The caselet also discusses the measures the company took to meet the threat of new technologies i.e., e-greetings and SMS greetings.

Issues:

 » The nature of the Indian social expression industry.

 » The impact of new age technologies on a traditional business and the importance of upgrading a company’s offerings.

Introduction

To bridge the gap between its Internet and retail outlet models, Archies introduced the concept of e-kiosks that introduced shoppers to the company’s website and its services. The portal also came out with advertisements that targeted non-resident Indians in the US, UK and the Middle East with the help of India Abroad News Service, Khaleej Times, India Post and India West.


As a result of these initiatives, the portal claimed to have registered over four million page views and programming of 0.15 million e-greetings in September 2000. The website became very popular in a short span of time and began to receive over three million page views per month. The number of registered users reportedly reached a phenomenal 0.6 million. Even though the number of e-greetings sent through the site touched 54 million, Archies discovered that the company gained no monetary benefit...

Questions for Discussion:

1. Critically comment on Archies’ franchising and distribution strategies for expansion. Do you think the company’s strategy in the initial years was right in the light of the rationalization exercises? Give reasons to support your stand.

2. Discuss if Archies will be able to maintain its marketshare and leadership in the future with the entry of players such as ITC? Will the company’s current strategies help sustain its competitive position?