Hidesign: Marketing Leather Products

            
 
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Case Details:

Case Code : MKTG146
Case Length : 16 Pages
Period : 1980-2006
Organization : Hidesign
Pub Date : 2006
Teaching Note :Not Available
Countries : Worldwide
Industry : Leather

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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New Products: Sustaining Excitement

The success of a luxury product depends as much on its 'coolness factor' as on an appropriate distribution network. Therefore, Hidesign put in a lot of effort into creating new products and a buzz around the brand.

In November 2002, Hidesign launched Cathy -a range of high class trendy ladies' handbags, as part of its City range. These were designed for daily use and were priced at Rs. 895, making them quite affordable. With a wide range of color options like black, biscuit, tan, light blue, dark blue, red, etc., the range was targeted at young working women who might find it interesting to match the range of bags with their wardrobe...

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Challenges

In the early 2000s, the Hidesign brand underwent an image makeover after a customer opinion survey in 2001 revealed that while the brand was highly valued for its quality, it was perceived as "boring" and not "cool" enough. In an attempt to change this image, Hidesign unveiled a two-part ad campaign in 2002. The ads were designed to give the brand a trendier image, to appeal more to younger prospects.

In the campaign, Hidesign was promoted as a "fashion forward" brand that customers in any part of the world could relate to. According to Kapur, the ads were designed to "go straight to the heart and change the image that we are boring" . The ad campaign targeted the upwardly mobile, educated, internationally-minded executives and focused more on women...

Outlook

The company remained optimistic about the prospects for further growth in the domestic market. Kapur felt Indians were as choosy about quality and style as the westerners and didn't shy away from buying something that appealed to them. And the sales figures seemed to support his views. In 2000-2001, when the firm started retailing in India, the domestic market contributed only 6% to its total business whereas in 2004-2005, the figure was 35%. Analysts were of the view that the non-apparel market, comprising categories such as handbags and footwear, was likely to log high growth rates in the near future as a result of easy purchase opportunities and the growth of organized retailing.

Exhibit

Exhibit I: World's Biggest Bag - By Hidesign
Exhibit II: Hidesign Logo
Exhibit III: Manufacturing Process for Leather Bags at Hidesign
Exhibit IV: Hidesign's Global Presence
Exhibit V: Different Types of Retailing
Exhibit VI: A Hidesign Retail Store
Exhibit VII: Hidesign Couture
Exhibit VIII: Hidesign Print Ads (2002)
Exhibit IX: Leather and Leather Accessories Market in India


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