ARCHIES

VS
VINTAGE
ARE WE IN BUSINESS OF
GREETINGS ?
Group No -13
Apurv Patwardhan 12
Shubham Nigade 41
 • HISTORY.
• PESTEL ANALYSIS (Business of Greeting cards).
• FIVE FORCE ANALYSIS (Business of Greeting cards).
• JOURNEY OF ARCHIES.
• ARCHIES SEGMENT WISE SALES HISTORY.
• JOURNEY OF VINTAGE.
• INVENTORY OF VINTAGE.
• ARCHIES VS VINTAGE COMPARISON.
• VINTAGE OVERLOOKED.

INDEX

Are we in Buisness of Greetings ? 2

  ARCHIES GREETINGS & GIFTS LTD. (AGGL).
– AGGL started by Anil & Jagdish Moolchjandani in 1979.
– Started as largest manufacturer & distributor of Greeting cards and latter added on
Posters, Soft Toys, Gift Items, Cassettes?CD’s & stationery items.
– Mission - “ BUSINESS OF EMOTIONS”.

 VINTAGE CARDS & CREATIONS

– Started by Anil kapur & Rajesh Vaishnav as partnership firm in 1983.
– Manufactured & marketed greetings, Didn’t focus on the changing trends of the
business, focused on improvement of quality of greeting only.
– Mission - “ To provide our customer with the product, keeping high benchmark in
the field of Quality Design Service”.

HISTORY
Are we in Buisness of Greetings ? 3
 Factors Explanation Impact On Industry Pointers for Company
•Political In 2002 average annual growth for Positive impact on Industry Number of Shops of Greeting card will increase.
Retail Market retail market was 13.3% . It will
increase to 20.81% in 2006.

•Economic In 2002 Compound Annual growth Negative impact on Industry. Shift towards new and innovative products.
CAGR rate of Gift card industry was 3.8%
and in 2006 it was 2.7%.

•Technology In 2002 use of E-commerce in India Negative impact on industry The shift towards E-commerce is necessary.
E-commerce was 11.5% and in 2006 it was 16%. Attraction toward retail industry will Ex-E-Greetings.
be low.

•Social 1. Celebration of occasions. 1, 2 & 3 Positive impact Try and create more occasions/ days to celebrate .
2. Increase in formal behavior
3. Increased love for sharing 4 ,5,6 Adverse impact Printed names of giver & receiver..
feelings through scripts.
4. Trend of gifts over cards
5. Willingness to present cards on
any occasion.
6. Recycling tendencies

PESTEL Analysis
Are we in Buisness of Greetings ? 4
 Factors High/Slow Reasons

Rivalry among existing 1. High 1. Product Differentiation - Low level of rivalry. Eg- Perfume,Gifts,Greetings
competitors 2. High 2. Exit Barriers- Inventory (for Vintage) Low Sell.

Threat of New Entrants 1. Low 1. Economies of scale--50%of market was equipped by Archies.
2. High 2. Retaliation of existing customers-High advertising and promotion reduces the threat of new
3. High entrants.
3. Switching Cost-Archies invested Rs 2 Croe in business of E-cards ,E-Commerce.

Threat of substitute 1. High 1. Greeting cards getting replaced by E-greetings, Messages.

products

Power of Supplier 1 High The Archies ties up with their suppliers for the new and innovative designs.

PORTER’S 5 Forces
Are we in Buisness of Greetings ? 5
 1987 Frist gallery at kamla Nagar, (Break Even at start, sales over Rs.22L.

1989 Tied up with Help Age. (care of disadvantage older persons in India).

1990 Concept of Occasion Cards.(Valentines Day, Holi, Eid)

1993 Sale of American Greeting design & selling them as paper rose cards.

2001 Tied up with CRY ( Child Relief & You).

2002 Included Perfumes & a range of gift articles, Jewellery.

2004 Tied up “RUSS” & “ WALT DISNEY”.

After 2005 Gallery expansion through countries neighboring India. (Business of Emotions.)

JOURNEY OF ARCHIES
Are we in Buisness of Greetings ? 6
 60

50

40

Greetings
30
Gifts
Stationery
20

10

0
2000 2001 2002 2003 2004 2005 2006

ARCHIES SEGMENT WISE SALES HISTORY

Are we in Buisness of Greetings ? 7
 1992 1.Collection of 3000 designs, 26 distributors, 3000 independent outlet
2.Agreement with Hallmark Cards.
3.Agreement with WALT DISNEY.

1996 Franchise stores increased to 67.

1997 1.Expansion in production capacities and new plant in GOA.

2.Franchise store increased to 135.

1999 1.Franchise outlets over 221 in 94 cities, 47 wholesalers, 8000 Retailers.

2.Tied up with Cancer Patients Aid Association.

2001 1.Cards in Hindi & Marathi.

2.343 stores in 115 cities.
3.Inventory of cards = 1.5 Years of sales.
4.Oct. company closed stores in pune.

2003 Operating loss of Rs.5.53 Cr.

2005 Unable to pay statutory dues.

JOURNEY OF VINTAGE
Are we in Buisness of Greetings ? 8
 25

20

15
Greetings
10

0
2000 2001 2002 2003

VINTAGE SEGMENT WISE SALES HISTORY

Are we in Buisness of Greetings ? 9
PROFITABLITY ANALYSIS
Are we in Buisness of Greetings ? 10
 • The first mover advantage in the competitive business.
• Promotions & Expansion of business.
• Focusing on the monopoly of product then the change in trends.
• Utilization of advancement in technology.
• Leader change leads towards the huge loss.
• Not followed the JUST IN TIME principle for Inventory management.
• Rivalry among existing competitors

VINTAGE OVERLOOKED
Are we in Buisness of Greetings ? 11