National Institute of Fashion Technology

Hyderabad

Master of Fashion Management

2013 – 2015

Global Marketing

International Launch

Submitted to:

Prof. GHS Prasad

Submitted by:

Gayatri Vs

Jayveer Deo

Sara Mahdi

Vishal Kerkatta (MFM III)

Contents

Leather Goods: Global Scenario

Leather Goods: Indian Scenario

Basta

The Basta Story

Focus

Brand Identity & Brand Image

SWOT analysis

Competitor Analysis

Segmentation|Targeting|Positioning

Perceptual Map

4Ps & Future Strategies

Globally Launching a Product: A Foreward

Basta’s 10 Step Launch Program

LEATHER GOODS & ACCESSORIES

Global Scenario:

The global imports of leather goods & accs had increased from US$ 16388.49 mn in 2007 to

US$ 22216.93 mn in 2011, growing at a cumulative annual growth rate of 7.90%. A

Statement showing global import of leather goods & accs viz-a-vis India’s export and share

during 2007 to 2011 is given below:

(Value in Million US$)

Leather Goods & Accs 2007 2008 2009 2010 2011

WORLD IMPORT 16388.49 18117.82 14376.65 17059.43 22216.93

INDIA'S EXPORT 800.46 873.44 757.02 855.78 1089.71

% SHARE OF INDIA 4.88% 4.82% 5.26% 5.01% 4.90%

MAJOR IMPORTING COUNTRIES OF LEATHER GOODS & ACCS:

(Value in Million US$)

Country 2007 2011

USA 3442.41 3862.78

Hong Kong 1748.82 2934.81

Japan 1764.83 2016.83

France 1105.43 1558.11

Germany 855.10 1223.17

Italy 893.25 1112.29

UK 949.24 1055.44

China 234.65 863.67

Korea Rep 302.43 757.56

Singapore 276.47 604.38

These 13 countries together accounts for a share of 77.95% in global leather goods &

accs. important

Top Exporting countries of Leather Goods & Accs

(Value in Mn$)

Country 2007 2011

China 3407.65 4693.80

Italy 3358.86 4331.55

France 2585.48 3405.22

Hong Kong 2033.47 3348.99

Germany 500.41 701.76

USA 348.70 408.82

Singapore 121.89 401.23

UK 257.05 335.39

Netherlands 152.88 326.22

Switzerland 290.59 321.73

(Value in Million US$)

Indian Scenario

Leather Goods form an important segment of the leather industry in India. Leather goods

production capacity is estimated to be 63 million pieces annually.  

The different types of Leather Goods and accessories are manufactured in India i.e., Trunks,

suit-cases, vanity-cases, executive-cases, brief-cases, school satchels, traveling bags /

luggage, Portfolio and similar such items, Hand Bags, shopping bags and similar such items,

Wallets, Purses, Pouches, Passport Holders, Credit Card Holders, Diary covers and similar

such items, Leather Belts, Caps etc. India also produces Leather Upholstery – Sofa Seat

Covers, Car Seat Covers etc.

Most of the units manufacturing leather goods are located in Kolkata, Chennai, Mumbai,

Kanpur, Bangalore and Puducherry.  Industry is situated in few other clusters also. 

India is the fifth largest exporter of leather goods and accessories (inclusive of Gloves) in

the world.

Leather Goods and accessories manufactured in India bear brand names like Coach, Pierre

Cardin, Yves St Laurent, Etienne Aigner, Geoffery Beene, Harrods, Marks & Spencer, Liz

Caliborne, Guess, Next, Tommy Hilfiger, Kieffer, Waldhausen, Biemen, Nederinum, Zaldi,

Kallquists, Shires, GFS, Millers, Eisers, Weco, Ukal and Decalthon.

INDIA’S EXPORT OF LEATHER GOODS & ACCESSORIES

(Value in Million US$)

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

800.46 873.44 757.02 855.78 1089.71 1178.96

Source: DGCI& S

India’s export of Leather Goods & Accessories including Gloves touched US$ 1178.96

million in 2012-13, holding a share of 23.59% in India’s total export of US$ 4996.91 mn 

INDIA’S EXPORT OF LEATHER

(Value in Million US$)

2007-08 2008-09 2009-10 2010-11 2011-12

183.26 232.05 121.22 165.63 238.62

Source: DGCI& S

MAJOR MARKETS

The major markets for Indian Leather Goods & Accessories are USA with a share of 19.12%,

Germany 14.84%, UK 13.10%, France 5.69%, Italy 5.32%, Spain 5.77%, Netherlands 4.57%,

UAE 3.65%, Australia 3.08%, Denmark 2.85%,

INDIA’S EXPORT OF LEATHER GOODS & ACCESSORIES –

COUNTRY-WISE

 (Value in Million US$)

Countries 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Germany 122.65 132.08 117.75 135.34 172.24 174.90

USA 123.86 155.02 137.97 162.90 196.83 225.47

UK 133.92 125.77 123.08 131.74 137.14 154.39

Italy 56.96 67.51 44.82 46.57 67.02 62.67

France 36.07 45.04 38.90 48.16 59.09 67.05

Hong Kong 3.37 4.22 5.77 8.71 11.49 9.77

Spain 59.93 52.33 51.47 62.82 79.12 67.98

Russia 1.02 1.01 0.57 0.97 2.45 2.74

Netherlands 36.51 41.91 38.12 40.86 49.39 53.90

Australia 28.48 32.72 26.00 26.27 34.17 36.30

New Zealand 2.25 2.02 1.56 2.35 3.34 3.32

QUANTITY-WISE EXPORT OF LEATHER GOODS:

(In Pcs)

2011-12

Ladies Handbags and other bags 14,382,032

Wallets 53,799,908

Leather Belts, Caps & Ties 9,910,639

Purses 6,904,629

Pouches 2,637,311

Passport holders / Credit card holders

etc

3,871,699

Travel / Luggage ware 639,908

Handcrafted leather items 2,342,290

Sofa / Chair/ Car seat covers

(upholstery)

107,678

Diary Covers / Cheque Book Covers 1,266,241

Pet Accessories 760,102

Portfolio / Briefcases 204,901

Desktop materials 434,451

Covers for

Camera

, Calculator etc

291,274

Leather Toys 78,754

Other Leather Goods 40,999,396

Total 138,631,213

CLE Membership Records

QUANTITY-WISE EXPORT OF LEATHER BAGS

(In Prs)

2011-12

Industrial Bags 108,706,249

Fancy / Fashion Bags 1,704,898

Sports Bags 150,139

Other Leather Bags 839,703

Total 111,400,989

REGION-WISE EXPORT OF LEATHER GOODS: 

(In pcs)

2011-12

Central 17,866,725

East 60,591,235

North 31,189,464

South 25,713,413

West 3,270,376

Total 138,631,213

CLE Membership Records

REGION-WISE EXPORT OF LEATHER BAGS:

REGION 2011-12

East 108,135,469

North 106,421

South 3,151,599

West 7,500

Total 111,400,989

CLE Membership Records

With the availability of quality raw materials coupled with skilled craftsmanship, India is

now poised to make itself a major destination for global sourcing of leather goods and

accessories. State-of-the-art production units and in-house Design Studios will strengthen the

industry in producing products with exquisite design and quality.

The industry’s accelerated development and growth is being aided by the ambitious capacity

expansion & modernization plans of private industry and the Indian Government’s

encouraging policy measures.

THE BASTA STORY

A homegrown brand, with the brand value to create products using the country’s

strong heritage of craftsmanship.

A strong Indian appeal.

The core value of the brand is its attitude, tradition and its commitment to

environment. Instead of using the much polluting dyes, the brand uses vegetable

dyes.

FOCUS

Good quality, Affordable, Distinctive design & aggressive marketing strategies.

Effective distribution channel a we plan to enter through local distributors like

Westside, Lifestyle, central, shopper’s Stop in India and move towards giants like

Hidesign etc.

A mix of tradition, practicality and trendy deigns

BRAND IDENTITY

Ethical

Practical

Innovative

Smart

Premium quality

BRAND IMAGE

Stylish & dependable

Strong individual character

Natural

Environmental concern

Youthful

SWOT ANALYSIS

STRENGTHS

Good Distribution Network: Tie-ups with popular Multi Brand Outlets like

Lifestyle, Westside & Shopper’s Stop.

High Youth Connect-Positioning as a young & stylish brand

Fast Changing Designs to keep up with the latest trends.

Diverse Portfolio of Bags, Wallets, Laptop Cases, etc

WEAKNESSES

Limited Global Reach despite being a popular brand

Changing Trends-Short life of products

OPPORTUNITIES

Fast growing youth segment presents growth opportunities.

Tie-Ups with established MBOs and special schemes for the youth.

THREATS

Youth segment is price sensitive

Tough competition from established brands like Hidesign & Da Milano

COMPETITORS' ANALYSIS

Stress on natural leather processing to show authenticity &

differentiation

Focus on uniqueness & innovation

Retailed through premium chains like Lifestyle, Westside,

Shoppers’ Stop

The Indian leather goods market is still hugely unorganized. There are a number of

individual shops selling products made by individual craftsmen. Talking about the

competitors nationally, there is regional competition, but no national competitors.

MAJOR PLAYERS IN THE MARKET

Hidesign

Da Milano

Kara

Hidesign & Da Milano position themselves as affordable luxury, targeting age

groups upwards of 25 years, with Da Milano priced from Rs. 5,500 upwards

to Rs. 15,500 for ladies bags and Hidesign’s leather bags for women & men in the

range of Rs. 1,995 to Rs. 8,895

SEGMENTATION

Psychographic segmentation :

Our segment are those people who value style and that is, those who want to make personal

statement of their style and value the evolved nature of their preference. Thus we target

young college students

Generation, Social class and Income Segmentation:

The brand is aimed at young and middle income group and it is priced accordingly.

Our focus is the mid-to-mass market segments.

TARGETING

The target market consists of people belonging to mid-income households, who

insist on high quality products without having to pay through their nose.

Further, our customer would be anyone who is globalized, cosmopolitan, young

and experimental.

Basta targets customers who are primarily in the 18-25 age-group, students &

young working professionals.

The high per capita income, coupled with a brand-conscious lifestyle, ensures

ongoing demand and tremendous growth prospects for brands such as Basta

POSITIONING

Values are still the same –that we are ecological and natural in our

manufacturing process, and still believe in high craftsmanship in modern

designing.

The brand image is more driven by style & exclusivity. The idea is to provide

more and more fashion through latest designs.

We have found that men buy products that are modern and have more

functionality. On the other hand, women are more brand conscious and buy to

look beautiful. We have experimented with different kinds of colors in leather.

We believe that their products possess a certain uniqueness that helps us stand

apart from the crowd and we have always tried to focus on this aspect in our

marketing strategies.

PRODUCT STRATEGY

USP: Youth Appeal

Positioned as casual bags and a fashion statement.

Perceived by the audience as stylish, trendy & practical

Current product offerings: Wallets, Bags, Satchels, Backpacks, Laptop Cases.

Distinctive Design & Ecological values

Handcrafted exclusive design

Emotional connect

PRICING STRATEGY

Midlevel Pricing for Urban Audience in Tier I and II cities

Products range from Rs 650/- to Rs 2500/-

Wallets starting from Rs 650.

Bags starting from Rs 1500.

Prices targeted towards the youth and towards the image of fashion accessory

rather than just a carrier.

PRICE RANGE

PLACE (DISTRIBUTION) STRATEGY

We will start selling our products through the multi brand outlets.

Tie-Ups with Multi-Brand Outlets like Lifestyle, Westside & Shoppers’ Stop.

Online Selling through portals like Jabong, FashionAndYou, Bagskart and other

fashion online sites.

P R O DUC T P R IC E R ANG EWallets R s 650-R s 900B ag s R s 1500-R s 2500S atc hels R s 1200-R s 1800B ac kpac ks R s 1000-R s 1500L aptop C as es R s 800-R s 1100

We plan to go for EBOs in future after getting a positive response from the

customers.

PROMOTION STRATEGY

Print media for advertisements in magazines & trade journals

Presence on the Social Networking

Online advertising through networking portals like Face book and twitter

ATL & BTL Activities

Merchandising & display in retail environment

Promotional activities & events

FUTURE STRATEGIES

Establish Exclusive Brand Outlets across India.

Expansion of domestic market in India.

Make a foray into customization.

GLOBALLY LAUNCHING A PRODUCT

Global companies today face the problem of initiating a global product launch, the situation of which has been further complicated by the changing global structure. A central characteristic of this is varied cultures, and, more importantly the multicultural situation of nations today. Companies are under more and more pressure to speed up the commercialization of new products in order to increase product lifetime and cost-effective value, at the same time keeping up with the changing trends of the industry.The major challenge in an international product launch is to ensure you deliver current and accurate product marketing materials to distribution channels, retailers and sales-teams securely and cost effectively.Other challenges in an international product launch include:• Addressing costs associated with a decentralized, ‘in-country’ model• Supporting public relations across multiple markets• Ensuring international product requirements for Engineering, QA, Marketing and

Sales are met• Planning for multi-language press tours, seminars, product presentations and

training sessions• Ensuring consistent testing and qualificationOther challenges include; meeting growth targets include changes in consumers’ demographics, increased competition in mature markets, and increased spending on services, and the rise of private labels and the low success rate of new brands.The Oxford University Press defines global marketing as “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives.” (Oxford University Press’ Glossary of Marketing Terms).Marketing constitutes the core of an international product launch. The strategy involved can make or break a product.Marketing constitutes the core of an international product launch. The strategy involved can make or break a product.The perfect international product launch involves managing the development and support of complex products and services throughout the entire lifecycle from product design to product build to post-sale service. It includes the integration of traditional new product introduction (product innovation, design and collaboration) with sourcing and procurement, supply chain planning and execution, and service – the entire product lifecycle.The importance of being first to market is very crucial in an international product launch. Besides the instinctive idea that it is best to be first, other measurable benefits are possible for those that get to the market sooner with innovative products and services. As product lifecycles continue to decrease, compressing development cycles and accelerating new product introductions are becoming critical. Product complexity is also increasing substantially, making development and product introduction even more challenging.

BASTA: 10 STEP LAUNCH PROGRAM

1. Evaluation of local market opportunities In order to leverage local market opportunities, a pre-launch analysis of the competitive space and customer demand in key country markets is a necessity.  Basta will not risk missing out on new opportunities to increase international revenue by avoiding a market check-up prior to the global launch. Existing and emerging markets around the world can offer hidden opportunities for expanding global market reach. In order to develop a revenue plan that supports global launch objectives, Basta will look into the market data to build a strong business case and secure budget for local markets.

2. Creation of a global plan and roadmapBasta’s global launch plan provides a clear vision and roadmap to facilitate execution by cross-functional and cross-regional teams. It will to be developed and delivered at least 4-5 months prior to launch to ensure effective execution through timely adoption of messaging, strategies, and production of deliverables. Drafting Basta’s global launch plan also provides the opportunity to engage teams worldwide. Basta team will ensure early input from key functional and country teams who will drive global and local marketing, communication, and sales readiness activities. Objectives, milestones, and success metrics will be realistic, time-sensitive and locally adaptable. The launch manager will collaborate with teams and ensure early participation in

launch efforts. In addition to key objectives, strategies, and tactics, the plan will include a timeline and a checklist of core deliverables that can be reviewed for country marketing and localization needs.

3. Designing an effective launch process worldwideBasta’s market success will be dependent upon its internal infrastructure and its ability to coordinate a centralized strategy with local execution. This will be determined by its ability to build a launch management framework and process where it will leverage internal team knowledge, manage project

flow, and effectively deliver product on time and on budget in every part of the world. Not a small task! Basta will build a global roadmap that accounts for key milestones in the global readiness areas of product, marketing, communication, and sales. Basta will then utilize project management tools to develop key roles, responsibilities, tasks, and timelines that support the roadmap – including the critical dependencies for meeting global launch objectives. Our deliverables matrix will include key

globalization, localization, and translation dates for completion of marketing and sales tools required for local markets. And we will now be ready to execute.

4. Engaging launch teams across cultures | Networking strategiesWhen launching Basta, a successful outcome will always be dependent on team alignment. We will ensure understanding, participation, and ownership from cross-functional and cross-regional team members. Building our network of team members across functions and cultures takes careful planning and relationship building. A constant Check in with our team members around the world and create a networking strategy is the first and foremost step. Bringing out the organization chart and identify our key drivers and influencers for the following: 1) Strategy Team (Executive sponsors), 2) Core Team (Cross-functional and cross-regional members), and 3) Local Team (country marketing managers).

Basta will then be prepared to assess its networking space. We will organize the appropriate foundation to build a network across the organization. Followed by making sure everyone is aligned with your launch objectives. Making our core team onboard and committed to the project. Helping the launch management team align with influential groups within the organization. And finally, ascertaining the Americas, EMEA, and APAC regions are aligned.

5. Communicating across functions and culturesWhen communicating around the world, Basta will ensure that it aligns teams and manages time zones effectively. In order to maximize awareness, interest, and participation in the global launch Basta will have a communication strategy that will engage team members in the Americas, EMEA,

and APAC. This strategy will address when communication takes place, to whom it should be communicated, and what will be communicated during the launch process. Basta’s communication strategy will engage cross-functional and cross-regional team members through the use of regular and consistent communications.

6. Testing Basta’s message and image

There are many global marketing mistakes that have been made by well-intentioned global strategists who assumed similarity rather than difference. In Taiwan, the translation of the Pepsi slogan "Come alive with the Pepsi Generation" was presented as "Pepsi will bring your ancestors back from the dead." Nike offended Muslims when the "flaming air" logo for its Nike Air sneakers looked too similar to the Arabic form of God's name "Allah". Microsoft offended customers in Latin American markets when a Spanish language version of XP Windows asked users to select their gender between “not specified”, “male”, or “bitch” (for example, “hembra” means woman in Venezuela while it means “bitch” in Nicaragua). To avoid embarrassing and costly mistakes, Basta will ensure that it works with a recognized translation service and review the final copy and image with our country-marketing manager for context and relevance.

7. Internationalizing customer communicationsOne way to leverage resources and reduce localization costs is to internationalize

communications. This simply means that key international messages are incorporated into global communication vehicles created at Basta’s headquarters in order to benefit international offices and local markets. The international message supports local marketing efforts by country managers. It also positions the company as a global player. This includes references to a worldwide rollout and product availability in key geographic markets in the worldwide announcement. References to country-specific success stories and the use of analogies and examples that will be understood by an international audience will be considered.

8. Ensuring timely and localized deliverables Since increasing global market reach is a growing priority for Basta, we are starting to pay more attention to local

marketing needs. Our global marketing strategy, which succeeds in avoiding local customer rejection, will focus on localized products and marketing tools. Our bags will address local requirements for design features, packaging, and pricing among others. Marketing positioning and messaging will consider the language, tone, and imagery. Internal teams will select and design culturally appropriate communication vehicles determined by language, terminology, design, color, style, format, and delivery.

Timing is a critical component for ensuring effective support and execution on announcement day and post-launch. In order to provide the local marketing and sales teams with the means to succeed, Basta will ensure that translated and localized tools meet an early production timeline to guarantee delivery prior to launch.

9. Delivering effective support tools to ensure global readinessBasta’s marketing and sales teams will be aligned in every corner of the globe. Sales team members will be engaged early in the launch planning process in order to achieve launch objectives for sales readiness, sales tool development, and customer engagement. An inventory of sales tools will be reviewed and selected for relevance and value in supporting local marketing initiatives. An important and often overlooked opportunity involves the development of international customer references and local success stories. Active use of quotes and testimonials from international customers will be extracted that will help the country teams accelerate sales and positions the Basta as a global player.

10. Enabling local sales teams through trainingBasta will be getting ready to launch and our sales team will speak the same language. We will ensure the same message in different countries. When ensuring sales readiness globally, Basta will to develop awareness, understanding, and knowledge. This will be accomplished by targeting local training needs and resources. When planning for local sales readiness, Basta will secure time and availability from product managers, trainers, and thought leaders who can travel to the regions. In addition to field communication and support tools, a series of education activities will reach all members of the worldwide sales force. Rapid e-learning sessions followed by live training for each region will ensure that sales teams are ready to go at launch.Time to market, efficient processes, and knowledgeable teams will be the core of

global launch and market success. When reviewing our global readiness checklist,

Basta will ensure that they have the capabilities to secure timely delivery through

strategic planning, effective communications, operational efficiency, and globally

responsive teams. Basta will create a global launch plan and roadmap for both global

and local needs. We will communicate effectively with teams across functions and

cultures and educate teams to connect with local and global customer needs. We will

leverage internal resources while increasing understanding and participation within

our organization. Basta’s global launch readiness will be it’s competitive advantage

and we’ll enjoy increased marketing and sales results around the world.

Our launching will happen through tourism fairs internationally.

Philanthropists and celebrities will endorse our bags and

showcase them on their social media accounts garnering

attention for Basta.

This will be followed by exporting as per demands.