KATE SPADE Risk turns niches into opportunities

Presented by Group 3

Swatanu 108Bertila 86Rajeev 72Manan 85

Shrey 102Vipender 87

Background

Katherine (Kate Noel Brosnahan ) graduated in 1986,Was employed by Mademoiselle magazine She left in 1991, from the post of senior fashion editordept. head of accessoriesKate & her then fiancé and now husband Andy Spadesaw that Women’s fashion accessories market lackedStylish and practical handbags They decided to start in this field

Starting up

Mission “ To develop a well-edited line of fashionable, but ‘not-trendy’ handbags ”

Vision “ Developing product lines & appropriately positioning the company in both domestic & global marketplace ”

Objective“ To create products that combine great personal style with long-lasting utility ”

Starting up

Initially developed design sketches for 6 handbags with simple shapes Importance on utility, color and fabricBrand “ KATE SPADE HANDBAGS ”

Kate took up charge of production (full-time work)Andy contributed to marketing expertise (part-time work on weekends and at night-shifts)

Andy who was previously working at a advertising agency became president and creative director in 1996

KATE SPADE IS A RENOWNED BRAND

TODAY !!!

Strengths

1.Fashion oriented products2.Risk taking ability of Kate Brosnahan3.Marketing expertise of Andy Spade4.Simontas’ fantastic negotiation skills were one of the major strengths5.A pool of expert and talented employees

Weakness

1.Andy Spade being unable to give full time to the business during start-up2.Trendy products were not in the list

Opportunities

1.Fashion conscious markets across the globe2.E-commerce options3.Customer preferring variations in products4.Design airhostess uniforms for different airlines

Threats

1.Other competitors giving strong competition. E.g :Ralph Lauren2.Markets preferring trendy products3.Duplication and piracy

THE QUESTIONS THAT FOLLOW

Q1.Describe the key decisions that Kate & Andy faced in the startup of their company ?Kate quit a well paid job

Chose fashionable line instead of trendy lineAndy continued with his job to maintain the required resources needed & also to gain marketing experienceAndy decided to work in night shifts and weekends despite his hectic schedule in the advertising agency

Q2.What were the key elements of Kate Spade’s growth in the first decade of its operations ? What specific business decision were made in implementing these key elements of growth ?Arrival of Andy Spade as a full time resource in 1996 for the position of president and creative director. He had expertise in marketing and advertisement.Arrival of Pamela Simontas in 1993 to assist sourcing of materials & manufacturing of the handbagsArrival of Elyce Arons in 1994 to focus on sales & PRIncreasing the pool of talent to 7-member partnershipDesign philosophy was to combine great personal style & provide long lasting utility

Q2.What were the key elements of Kate Spade’s growth in the first decade of its operations ? What specific business decision were made in implementing these key elements of growth ? Setting up of its first outlet in New York City in the SOHO neighborhood which is considered a posh fashion locality Expansion in up-growing markets

Domestic level : Boston, Los Angeles, Greenwich, Manhasset, San Francisco, Georgetown, ChicagoInternational : Tokyo, Kyoto, Osaka (JAPAN) & Australia, Bahamas, Bermuda, Canada, England Guam, Hong Kong, Ireland, Korea, Singapore, Taiwan

Q3.What key decisions will Kate Spade need to make during the 2nd decade of its operation?

To develop & focus more on e-commerce facility to continue its phenomenal success of past decadeTo continue its expansion to emerging markets like India, Brazil, China etc.To develop JACK SPADE as a brand and make it the company’s growth engine by introducing new product-lines like glasses, shoes, wallets, male grooming productsTo advertise more in the fashion market. Showcase products in fashion-related events worldwide. E.g. Lakme India fashion week, Paris Int’l fashion fest

Q3.What key decisions will Kate Spade need to make during the 2nd decade of its operation?

To emphasize more on fashion and improve on quality rather than current market-trend of low cost merchandise To continue differentiating themselves from their competitors by exploring options of e-commerce and gaining competitive advantage by making use of Information Systems.

Q4.What options are available to Kate Spade in developing an e-commerce operation?E-commerce to enable people in countries where franchises not available to purchase KATE SPADE merchandise. Saves the cost of setting up an outlet in that country/ locationProvide virtual/3D products visuals on the web to appeal more to the consumersLink website to shopping zones like e-bay.com, amazon.com on the network

Q5.How might Kate Spade utilize information technology to help fuel continuing global expansion ? Website to be used for multi purpose of advertising as well as for on-line selling of productsAdvertising on popular sites like facebook, orkut etc.Use databases to stay updated about supply and product availability in various centers all around the world. Automate logistics and supply procedure By data mining techniques to effectively see what products sell in what numbersMaintain customer database to know tastes and preferences of different customersJust in time technology

THANK YOU