Harvard Case - Abu Jani Sandeep Khosla: Sustaining an Indian Luxury Brand
"Abu Jani Sandeep Khosla: Sustaining an Indian Luxury Brand" Harvard business case study is written by Seema Khanvilkar, Veena Vohra. It deals with the challenges in the field of Marketing. The case study is 12 page(s) long and it was first published on : Aug 31, 2021
At Fern Fort University, we recommend a strategic approach for Abu Jani Sandeep Khosla (AJSK) to sustain its position as a leading Indian luxury brand. This approach involves leveraging the brand's heritage, expanding its product portfolio, and embracing digital channels while maintaining its core values of craftsmanship and exclusivity.
2. Background
The case study focuses on Abu Jani Sandeep Khosla, a renowned Indian luxury fashion house established in 1986. The brand is known for its exquisite craftsmanship, intricate embroidery, and unique designs, catering to a discerning clientele. The founders, Abu Jani and Sandeep Khosla, have built a strong brand reputation through their dedication to quality and their understanding of the Indian luxury market. However, the brand faces challenges in maintaining its relevance in a rapidly evolving fashion landscape.
3. Analysis of the Case Study
To analyze AJSK's current situation and future potential, we utilize a combination of frameworks, including:
- SWOT Analysis: This framework helps identify the brand's internal strengths and weaknesses, as well as external opportunities and threats.
- Strengths: Strong brand recognition, established customer base, unique designs, and skilled artisans.
- Weaknesses: Limited product diversification, reliance on traditional marketing channels, potential for brand dilution, and limited global reach.
- Opportunities: Growing Indian luxury market, increasing demand for sustainable fashion, potential for digital expansion, and expansion into new product categories.
- Threats: Competition from international luxury brands, changing consumer preferences, economic fluctuations, and technological disruptions.
- PESTEL Analysis: This framework examines the broader external environment impacting the brand.
- Political: Government policies on luxury goods, trade agreements, and intellectual property rights.
- Economic: Economic growth, consumer spending patterns, and currency fluctuations.
- Social: Changing consumer values, increasing demand for ethical and sustainable fashion, and growing influence of social media.
- Technological: Advancements in manufacturing processes, digital marketing tools, and e-commerce platforms.
- Environmental: Growing awareness of environmental sustainability and the impact of the fashion industry.
- Legal: Regulations on product safety, labeling, and intellectual property.
- Porter's Five Forces: This framework analyzes the competitive landscape and identifies the forces influencing industry profitability.
- Threat of new entrants: Moderate, as establishing a luxury brand requires significant investment and expertise.
- Bargaining power of buyers: High, as customers have many choices in the luxury market.
- Bargaining power of suppliers: Moderate, as AJSK relies on skilled artisans and high-quality materials.
- Threat of substitutes: Moderate, as consumers can choose other luxury brands or opt for more affordable alternatives.
- Rivalry among existing competitors: High, as the Indian luxury market is increasingly competitive.
4. Recommendations
Based on the analysis, we recommend the following strategic initiatives for AJSK:
1. Expand Product Portfolio and Target New Market Segments:* Diversify offerings: Introduce new product lines beyond traditional clothing, including accessories, home d'cor, and fragrances. This can cater to a wider customer base and increase revenue streams.* Target younger demographics: Develop contemporary collections that appeal to a younger, digitally-savvy audience, while maintaining the brand's core values.* Explore niche markets: Focus on specific segments, such as sustainable fashion or ethical luxury, to differentiate AJSK from competitors.
2. Embrace Digital Marketing and E-commerce:* Develop a robust online presence: Invest in a user-friendly website, social media platforms, and e-commerce capabilities to reach a wider audience and enhance customer experience.* Leverage digital marketing tools: Utilize targeted advertising, influencer marketing, and content marketing to engage with potential customers and build brand awareness.* Offer personalized experiences: Implement CRM strategies to understand customer preferences and provide tailored recommendations and services.
3. Strengthen Brand Positioning and Storytelling:* Refine brand messaging: Clearly communicate AJSK's unique selling proposition and value proposition, emphasizing craftsmanship, heritage, and exclusivity.* Develop compelling brand narratives: Tell stories about the brand's history, design process, and commitment to quality, engaging consumers emotionally.* Collaborate with influencers and media: Partner with relevant individuals and publications to showcase AJSK's designs and reach new audiences.
4. Embrace Sustainability and Ethical Practices:* Adopt sustainable practices: Use eco-friendly materials, reduce waste, and implement ethical sourcing practices to appeal to environmentally conscious consumers.* Communicate sustainability efforts: Promote AJSK's commitment to sustainability through transparent communication and marketing campaigns.* Partner with NGOs and initiatives: Collaborate with organizations working towards sustainable fashion to enhance the brand's image and impact.
5. Explore International Expansion:* Identify target markets: Research and select potential markets with a strong demand for Indian luxury goods and a receptive cultural context.* Develop a strategic entry plan: Consider different market entry strategies, such as partnerships, joint ventures, or direct investment, based on the chosen markets.* Adapt to local preferences: Customize product offerings and marketing strategies to cater to the specific needs and preferences of each target market.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of AJSK's internal and external environment, considering the following factors:
- Core Competencies and Consistency with Mission: The recommendations align with AJSK's core competencies in craftsmanship, design, and brand heritage. They also support the brand's mission of providing exquisite luxury experiences.
- External Customers and Internal Clients: The recommendations address the needs of both existing and potential customers, including younger demographics and those seeking sustainable and ethical fashion. They also consider the needs of internal stakeholders, such as artisans and employees.
- Competitors: The recommendations aim to differentiate AJSK from competitors by focusing on unique selling propositions, expanding product offerings, and leveraging digital channels.
- Attractiveness ' Quantitative Measures: While specific financial projections are not provided in this case study solution, the recommendations are expected to contribute to increased revenue, market share, and brand equity, ultimately enhancing the brand's long-term profitability.
- Assumptions: The recommendations are based on the assumption that the Indian luxury market will continue to grow, consumer demand for ethical and sustainable fashion will increase, and digital marketing will play a significant role in reaching target audiences.
6. Conclusion
By embracing a strategic approach that combines heritage with innovation, AJSK can solidify its position as a leading Indian luxury brand. Expanding its product portfolio, leveraging digital channels, and prioritizing sustainability will enable the brand to reach new audiences, enhance customer experience, and drive long-term growth.
7. Discussion
Alternative approaches to sustaining AJSK's position include:
- Focusing solely on traditional marketing channels: This approach could limit the brand's reach and hinder its ability to connect with younger demographics.
- Ignoring digital marketing: This would result in missing out on significant opportunities to engage with potential customers and build brand awareness.
- Ignoring sustainability: This could alienate environmentally conscious consumers and damage the brand's reputation.
The recommendations presented in this solution are based on the assumption that AJSK is willing to invest in its growth and embrace change. Risks associated with these recommendations include:
- Potential brand dilution: Expanding product offerings and targeting new segments could dilute the brand's exclusivity and impact its core values.
- Competition from international luxury brands: AJSK needs to maintain its competitive edge and differentiate itself from global players.
- Technological disruptions: Rapid advancements in technology could require continuous adaptation and investment.
8. Next Steps
To implement the recommendations, AJSK should:
- Develop a detailed strategic plan: Outline specific objectives, timelines, and resource allocation for each initiative.
- Invest in digital infrastructure: Upgrade the website, social media platforms, and e-commerce capabilities.
- Hire skilled personnel: Recruit digital marketing experts, product developers, and sustainability specialists.
- Monitor progress and adapt strategies: Regularly track key performance indicators and make adjustments as needed.
By taking these steps, AJSK can ensure a successful transition into the future, maintaining its legacy while embracing the evolving landscape of the luxury fashion industry.
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Case Description
Saudamini Mattu was the chief executive officer of Abu Jani Sandeep Khosla (AJSK), a successful Indian luxury brand specializing in luxe couture, interior design, and wedding decor. The brand had roots in ancient Indian embroidery, and its story was inextricably linked with the personalities of its founders, Abu Jani and Sandeep Khosla, who thought of themselves as revivalists creating luxury products and experiences using designs with an Indian ethos. The luxury brand had deeply resonated with its loyal customer base for over three decades, but AJSK had to now address the relevance and sustainability of its brand story. Mattu therefore had to evaluate whether AJSK's brand story was relevant in the constantly shifting luxury market, and recraft the brand story for the House of AJSK, while considering missed opportunities and the viability of the business model of a creative organization in a challenging economic scenario.
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