Most special way to say you care..!!

Archies Gallery : Redefining Indian social expression industry

Traditional Way

Controlled entirely by the unorganized sector The gifts comprised standard offerings such as flowers, books, sweets, garments High end gift items silver and semiprecious stone trinkets

Archies Way

Changed the predictable Indian mindset Whole new range of unique items Quality of merchandise underwent a complete transformation

Archies Gallery : Changing the game

Indias apex market leader in the social expressions industry 50% market share in the organized sector 120 company stores in 14 states and 36 cities across India 350 franchise outlets in 100 Indian cities and 5 countries

Archies Gallery : Go-To-Market strategy

Company Owned Stores

Franchise Outlets

ecommerce portal: www.archie s online.com

Organization structure
Director

M.D.

Zonal Head North

Zonal Head South

Zonal Head Central State Head (Madhya Pradesh)

Zonal Head West

Zonal Head East

District Head (Bhopal)

District Head (Gwalior)

District Head (Indore)

District Head (Jabalpur)

District Head (Ujjain)

Store Managers

Store Managers

Store Managers

Store Managers

Store Managers

 Huge untapped market (per capita consumption 0.5 in India compared to 40 in US) Market is growing at 15%-20% per annum. Acquired Hallmark No competition

Market

Creatin g Deman d Promot ion

Conceptualized friendship day/ daughters day Introduction of new lines of everyday cards such as Thinking of you, Hello, Miss you and Get well soon, among others

Tie up with Help Age and CRY Direct mailers and contact systems for corporate houses

Building Brand Image

Sponsored MTV Roadies 6.0 and added Roadies merchandise Archies gift of the month @99 Promoted their props through Bollywood(I hate luv stories)

Archies Gallery in Indore: Channel Levels

Mother Warehouse (New Delhi)

Company Owned Stores (5) City Stockist (Chhawni) Franchise Outlets (4)

Consumers

Consumers

Archies Gallery in Indore: An Overview

City Stockist (1) Company Owned Stores (5) Franchise Outlets (4)
Chhawni

C-21 Central Mall Mangal City Old Palasia Treasure Island

Apollo Square Malhar Sapna Sangita

Distribution Flow : Regular Orders

Store Manager orders online, based on the inventory count and expected sales Quantity not cost is the criteria Stores receive the packages Inventory counting happens Payment is made Items are arranged in assigned pallets Manufacturer at New-Delhi accumulates order from one city worth a truck-full of order Dispatches the order to the city stockist Lead Time = 7days City Stockist receives the order Inventory counting happens Package for separate stores are prepared

Distribution Flow : Emergency Orders

Store Manager orders online, based on the inventory count and flash sales

Manufacturer at NewDelhi accumulates order

Dispatches the order to the store through courier or person Takes lesser time(2-3 days) but more cost

Online Delivery by Speed Post from Delhi

Costs mainly in designing

Direct selling to Corporate Retail Cha of Reliance, Aditya Birla, Mahindra et

Training to employee s

Company owned outlets

Margins 200% and above

Opening store 60 lacs excluding inventory

Employees . inventory based on sq foot of space

Margin of 35% 30% of nonArchies product

permissible

Training Franchise Outlets

Frequent Surprise Audits

Detailed territorial rights in the contract

Minimum size: 500 sq. feet

Authorized to sell to small gift shops also

No credit offering from Archies

Advertising support in the form of Brand and event advertising

Investment 20 Lacs Archies Gallery 10 Lacs Paper Rose Store

No franchisee outlet within 1.5km radius

Franchise Outlets

Issues of Concern
Shop keeping Archies products in Palasia Shrinkage avoidance Service quality at franchise stores

Stores we visited..!!
Old Palasia C-21 Mall Central Mall

Treasure Island Mall DB Mall, Bhopal

References

http://www.archiesonline.com/gateway/archies_ superbrand_article.php http://www.indiacardsgallery.com/ArchiesIndia.asp http://www.capitalmarket.com/magazine/cm142 1/capcor.htm http://www.icmrindia.org/casestudies/catalogue/ Business%20Strategy1/Archies%20The%20Wa y%20Indians%20Greet%20Business%20Strate gy.htm