Singh Nikhil Ranjeet Case Insights-2 PGPGC202100460

p21nikhils@iima.ac.in
Challenges faced by ALESSI:

 Distribution Challenges: Creating a consistent retail experience for Alessi products. The

products were displayed in a unsystemsatic order by the retailers leading to a not-so-good

buying experience. Also, the idea of having mono-brand stores was not feasible as this required

a huge fixed-cost investment.

 Collaboration with other brands: Partnerships with other well-known brands and licensing deals

with this firms had the potential to create multiple opportunities in the form of royalties but this

also created numerous distribution problems.

 Expanding the distribution without compromising control of the brand image.

 Designing a product without relying on market-research.

Solutions:

 Distribution Challenges: Refining and modifying the distribution channel with better POS.

Encouraging the retailers to adopt ‘shop-in-shop’ format.

Learnings from the Case:

Alessi’s approach was different compared to the approach of other mass-production brands, as

their primary focus was on selling experience and culture in the form of their products. Also,

they aimed at creating an image of a design/ creative / art and culture focused brand, and not

an image of a product selling brand.