8/9/2019 archies ..........

1/13

8/9/2019 archies ..........

2/13

Archies was established in 1979 by a Delhi Based person named Anil

Moolchandani and his brother Jagdish Moolchandani .

In 1984 ,company launched its first outlet in Delhi named GiftGallery .

In 1987 ,the first exclusive Archies gallery was set up in Kamla Nagar, situated in the heart of the Delhi University Campus.

In 1990, the brothers established Archies Greetings & Gifts Pvt.Ltd.

with its three product lines i.e.Greeting card,gift items & stationaryproducts.

In 1994, Anil decided to install a printing unit for the company andtied with the US based Gibson card manufacturing company

In 1995 Archies was incorporated as a Public Limited Company withits

initial Public offering of Rs.74 million.

8/9/2019 archies ..........

3/13

Analyse the circumctances in which anil moolchandani startedarchies and highlight the reason for company runway success.Why do you think archies could not sustain its profatibilatygrowth in 2000-01?

Ans: archies was the brainchild of delhi based anil moolchandani. Inthe late 1970s he decided to buy and sell good quality postersthrough mail order catalogs then anil decided to sell bookscontaining lyrics of hit english songs in addition to the posters.After that anil entered into the greeting card bussiness. He

observed that in india cards were typically sold out of dusky shoeboxes marked birthday and aninversary kept in the cornersof the stationary shops.

Then in 1979 anil and his brotherjagdish moolchandani got archies gifts and greetings registerdas the partership concern for starting the greeting cards bussiness.

8/9/2019 archies ..........

4/13

During his visit to south east asia anil was impressed withthe exclusive greeting card shops offering good ambienceand soft backdrop music. He tried this concept in india also,which led to the launch of first archies outlet In delhi in

1984, named gift gallery. In 1990, the brothers established Archies Greetings & Gifts

Pvt.Ltd

In 1994, Anil decided to install a printing unit for thecompany and tied with the US based Gibson card

manufacturing company. In 1995, Archies was incorporated as a Public Limited

Company with its

initial Public offering of Rs.74 million.

8/9/2019 archies ..........

5/13

Archies sold its products through franchisees. The Franchisees made their own investment in the business and paid royalty to Archies for turnover. Archies Quality Control team monitored the franchise stores for

ambience, space allocation, lighting and display. Divided the franchise operations into three segments. The Top-level franchises ran the Archies Galleries. The middle level franchisees ran the Archies Card shops and paper rose shoppes. The bottom level, and smaller franchisees operated the feelings

and other retail outlets. Adopted Localization strategy and come out with the cards for Indian festivals such as Holi, Diwali and Rakshabandhan.

8/9/2019 archies ..........

6/13

Backed by aggressive promotional campaign to createawareness and persuade people to communicatethrough cards.

Successfully managed to built a strong brand Equitywith its Tie-ups with companies like Pepsi and Pidilite.

Organizing events and honouring winners.

Offers and promotional scemes were there.

Popularize western occasions in india Promoted their props through bollywood.

Tap all the indian festival and occasions.

8/9/2019 archies ..........

7/13

IN THE LATE 1990, E-GREEETING came underexistance.

To facing that threat ,archies launched

archiesonline.com in may 2000, having no charges , isfree site. Bt after that the company realized it wasearing no profits out of it. That site should be paid.thattime the company invested rs.20 million in the onlinesubsidiary but it just made rs.2 million from e-

commerce.

8/9/2019 archies ..........

8/13

During the financial year

1999-00, Archies decided torevamp its distribution

network and replace existingdistributors by a C&F agentnetwork. According to the newdistribution system, in place of68 distributors in 21 states,

Archies appointed 10 C&Fagents in 10 states whocatered to distributors who inturn reached out to the retailers.

8/9/2019 archies ..........

9/13

Yes we agree with the improved model of franchiseeand distribution.

Because the biggest advantage of this model is that the

company owns the inventory , so the consumer isensured of seeing the entire product range that isavailable.

The shift from distributors to c&f agents cut costssignificantly.

8/9/2019 archies ..........

10/13

Earlier this site was free of cost , having no charges

Archiesonline.com had three major sections Meet, Greet andGift with

following services :Meet- Free e-mail , chat , reminder services ,greetings scheduler.Greet-A consumer interaction area where registered customerscould

send and receive a variety of animated e-cards/greetings online. Gift-Purchase gifts an get them delivered at their doorstep.

Tied-up withElbee and Blue Dart to deliver the gifts and cards andwith

Easy Net.com for payment gateway.

Entered into strategic alliances with Yahoo.com, Jaldi.com,

8/9/2019 archies ..........

11/13

because this site having no charges ,, caused a heavylosses to the company .. So acc. To our perception thisis a better way to coming up with the site which is

paid..thts true that this idea also didnt give the rightresults as many users stopped using this website .butthis site is compliment the existing physical bussiness.itis used as the online venture as an extension of itsbussiness rather .

8/9/2019 archies ..........

12/13

8/9/2019 archies ..........

13/13