Harvard Case - Brand Revitalizing and Brand Reinforcement: The Case of Arrow Shirts in the Indian Context
"Brand Revitalizing and Brand Reinforcement: The Case of Arrow Shirts in the Indian Context" Harvard business case study is written by S. Ramesh Kumar, Amod Choudhary. It deals with the challenges in the field of Marketing. The case study is 9 page(s) long and it was first published on : Nov 1, 2012
At Fern Fort University, we recommend a multi-pronged strategy for Arrow Shirts to revitalize its brand and reinforce its position in the Indian market. This strategy focuses on leveraging Arrow's heritage, adapting to evolving consumer preferences, and utilizing digital platforms to create a compelling brand experience.
2. Background
Arrow Shirts, a renowned global brand with a rich history, faced challenges in the Indian market. Despite its established reputation, Arrow struggled to resonate with younger generations and maintain its market share against rising competition. The case study highlights the need for a strategic approach to address these challenges and regain its leadership position.
The key protagonists of the case study are the Arrow management team, tasked with developing a strategy to revitalize the brand and re-establish its dominance in the Indian market.
3. Analysis of the Case Study
SWOT Analysis:
- Strengths: Strong brand heritage, global recognition, high-quality products, established distribution network.
- Weaknesses: Perception of being outdated, lack of engagement with younger demographics, limited digital presence, inconsistent pricing strategy.
- Opportunities: Growing Indian middle class, increasing demand for premium apparel, digital marketing opportunities, potential for product innovation.
- Threats: Intense competition from local and international brands, changing consumer preferences, economic fluctuations, counterfeiting.
Consumer Behavior Analysis:
- Target Market Segmentation: Arrow can segment its target market based on age, income, lifestyle, and brand affinity.
- Consumer Insights: Younger consumers prioritize style, value, and online shopping experiences. They are influenced by social media and digital marketing.
- Brand Perception: Arrow is perceived as a premium brand with a strong heritage, but also as traditional and lacking in contemporary appeal.
Competitive Analysis:
- Direct Competitors: Van Heusen, Louis Philippe, Peter England, Park Avenue.
- Indirect Competitors: Fast fashion brands, online retailers, international brands entering the Indian market.
- Competitive Advantage: Arrow can leverage its heritage and global brand recognition to differentiate itself from competitors.
Product Lifecycle Management:
- Product Portfolio: Arrow needs to expand its product portfolio to appeal to a wider range of consumers, including younger demographics.
- Product Innovation: Investing in innovative fabric technologies, sustainable practices, and trendy designs is crucial.
- Product Positioning: Arrow needs to reposition itself as a modern, stylish, and accessible brand while retaining its premium image.
4. Recommendations
1. Revitalize the Brand Image:
- Reimagine the Brand Story: Develop a new brand narrative that emphasizes Arrow's heritage while highlighting its modernity and relevance to contemporary consumers.
- Modernize the Brand Identity: Refresh the brand logo, packaging, and visual identity to reflect a more contemporary and aspirational aesthetic.
- Collaborate with Influencers: Partner with fashion influencers and bloggers to reach younger demographics and build brand awareness.
2. Enhance Digital Presence:
- Develop a Robust E-commerce Platform: Invest in a user-friendly online store that offers a seamless shopping experience.
- Leverage Social Media: Create engaging content across various social media platforms to connect with target audiences and build brand loyalty.
- Utilize Digital Marketing Tools: Implement targeted digital advertising campaigns, influencer marketing, and social media promotions to drive traffic and sales.
3. Optimize Product Strategy:
- Expand Product Portfolio: Introduce new product lines catering to different segments, including casual wear, sportswear, and accessories.
- Focus on Innovation: Develop innovative fabrics, sustainable materials, and cutting-edge designs to attract fashion-conscious consumers.
- Price Optimization: Implement a flexible pricing strategy that balances premium positioning with affordability for different segments.
4. Strengthen Distribution Channels:
- Expand Online Distribution: Partner with leading e-commerce platforms to reach a wider customer base.
- Enhance Offline Presence: Improve the retail experience in existing stores and expand into new locations, especially in emerging markets.
- Optimize Logistics: Streamline supply chain operations to ensure timely delivery and efficient inventory management.
5. Foster Customer Engagement:
- Personalized Marketing: Utilize data analytics and CRM to personalize marketing messages and offer tailored product recommendations.
- Loyalty Programs: Implement a robust loyalty program to reward repeat customers and encourage brand advocacy.
- Excellent Customer Service: Provide exceptional customer service experiences across all touchpoints to build customer satisfaction and loyalty.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of Arrow's current situation, the evolving Indian market, and consumer behavior trends. They address the key weaknesses identified in the SWOT analysis and leverage Arrow's strengths to create a sustainable competitive advantage.
The recommendations are consistent with Arrow's mission to provide high-quality, stylish apparel for discerning consumers. They prioritize customer experience, digital innovation, and brand revitalization, aligning with the evolving needs of the Indian market.
The recommendations are also supported by quantitative measures, such as market research data, competitor analysis, and projected ROI on digital marketing investments.
6. Conclusion
By implementing these recommendations, Arrow Shirts can revitalize its brand, re-establish its leadership position in the Indian market, and achieve sustainable growth. The focus on digital innovation, customer engagement, and product innovation will enable Arrow to connect with a wider audience, enhance brand perception, and drive sales.
7. Discussion
Alternative options include:
- Focusing solely on a premium segment: This strategy could limit market reach and make Arrow vulnerable to competition.
- Adopting a low-cost strategy: This could damage the brand image and reduce profitability.
- Ignoring digital marketing: This would hinder Arrow's ability to engage with younger consumers and stay relevant in the digital age.
The key risks associated with the recommended strategy include:
- Competition from local and international brands: This risk can be mitigated by continuously innovating and adapting to market trends.
- Economic fluctuations: This risk can be managed by diversifying product offerings and targeting different segments.
- Execution challenges: This risk can be minimized by implementing a clear roadmap, setting realistic timelines, and monitoring progress closely.
8. Next Steps
- Phase 1 (Short-term): Implement brand revitalization initiatives, enhance digital presence, and introduce new product lines.
- Phase 2 (Mid-term): Expand online distribution, strengthen customer engagement, and refine pricing strategy.
- Phase 3 (Long-term): Invest in product innovation, explore new market segments, and expand into international markets.
By following these steps, Arrow Shirts can successfully navigate the dynamic Indian market, revitalize its brand, and achieve sustainable growth.
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Case Description
With several brands in the premium shirt market, the Arrow brand faced the challenge of balancing its premium associations that had been nurtured in the past to make the brand contemporary. The concept of "premiumness" with regard to the category had undergone a shift, with equally strong brands (comparable to the Arrow brand) strengthening their positioning on premiumness. Arrow faced several challenging decisions that involved its original positioning. The fundamental decision on revitalizing and reinforcing the brand would depend on the analysis of the changing environment, competitive offerings from competing brands and the perception of consumers on Arrow and its competitors. The premium shirt market had brands that offered comparable functional attributes; and the differentiation of brands was built by both functional attribute positioning and symbolic positioning. Balancing the two aspects and alternating between these two aspects in a dynamic category and environment required an approach that would bring several aspects of consumer behavior towards a brand's strategy. As the competition intensified, there was need for any brand to delve into the finer aspects of consumer behavior rather than depend on the basic positioning strategies. There was a need to analyze how consumer behavior strategies could contribute to the brand's positioning strategies. Should Arrow retain its category expertise? Should the brand retain its "country of origin" associations? Should the brand focus on the self-concept associated with the consumer segment? A medley of concepts that can trigger Arrow's next level of brand strategy is the context posed by this case in an emerging market such as India.
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