Section B Group 3

Anisha Goel- PGP/20/132

Dhruv Juneja- PGP/20/145
Konica Yadav- PGP/20/152
Piyali Das- PGP/20/163
Sorav Roy- PGP/20/184
Suganya Devi- PGP/20/384
 INTRODUCTION

Victorinox Wenger S.A Fragrance Industry

Manufacturer of Swiss Army Innovation, precision and Though the market is matured,
Knives outstanding the industrial forecast indicates
120 years old craftsmanship growth
In 2005 acquired Wenger S.A Acquired Serious competition to Demand from late teens to
Product Portfolio Victorinox middle age group
Diversification Strategy Product Portfolio Brand conscious consumers
Knives Knives Considered as a luxury item
Watches Watches Market dominated by key players
Luggage Fragrances like L'Oral, Coty, P&G, Avon
Apparel
Brand Attributes Decisions
High Quality
Reliability Should Victorinox diversify into fragrance business?
Functionality Should they transfer the existing brand attributes or should they adopt a new
Innovation brand to market their perfumes?
Iconic design How to best compete and position themselves in the mature and competitive
market?
Brand Portfolio

Lifestyle
Cash Cows Flankers
Introduced recently with current
With sales worth USD166 million With sales of USD 30 Million and
sales worth USD 7 Million
Swiss Army Knife USD 14 Million
SWISS ARMY Apparels
Swiss Army Luggage &
Swiss Army Watches
 OPTIONS

Diversify
into Close Business
Fragarance

Use brand Use brand Wenger

VICTORINOX or new brand
 STRENGTH
Strong brand name
Loyal customer base
Number of retail outlets
Established distribution channels
Successful brand transfer to other products like
knives, cutlery, fashion apparel
Innovation important for fragrance
industry as well
SWOT
ANALYSIS
OPPURTUNITY
Increase product portfolio
Huge market potential 65% market share for
premium (23.5 billion dollars)
Growing brand consciousness
Growing interest in beauty products among Gen Y
Limited tariffs and trade barriers
WEAKNESS
No prior experience in Fragrance industry
Extremely specific brand image
THREAT
Change in basic laws (packaging, labelling
ingredients, etc. )
Limited number of suppliers
Wide range of chemicals needed
Substantial fund investment
Nearly mature market
High Brand loyalty
ANSOFF MATRIX

Fragrance is new product

for Victorinox

Victorinox will cater to a

new market for fragrance

Victorinox should go for

DIVERSIFICATION strategy
 RECOMMENDATIONS
VICTORINOX SWISS ARMY SHOULD DIVERSIFY INTO FRAGRANCE PRODUCTS

Victorinox should make use

Victorinox should go for of the established
premium men and women relationships with suppliers
fragrance of primary materials that
Wenger brought into
Victorinox

Victorinox should attempt to Like the rest of its product

transfer its existing brand portfolio the fragrance
attributes i.e. innovation, should be aligned with the
reliability, functionality and Victorinox brand
quality to fragrance products personality and what
people associate with the
brand i.e. , active and
outdoors