Defining the Concept and Business Plan for a Luxury Silverware House
The client, one of the oldest and most reputed jewellery houses in Mumbai, wanted to launch luxury silverware brand. The top management was faced with certain strategic questions with respect to expansion and growth plans. The client turned to UC to have a diagnostic study of the current landscape and the future potential of branded silverware in India. It also requested UC to define a business plan for the client with the following key areas:
- Target segment
- Product mix
1) Within silverware
2) Adjacent product categories e.g. leather, jewellery
- Retail format evaluation and selection
- Geographical expansion
- Competitive landscape and market dynamics
- Branding and positioning strategy.
UC developed an understanding of luxury space and silverware market in India. Further, to define the business plan of the company, UC adopted the following approach:
- Conducted primary research in 3 locations - Bombay, Hyderabad and Delhi and held discussions with various respondents
- Evaluated customer segments based on demographic and psychographic characteristics to be targeted in the future after studying the preferences and purchase patterns of different lifestyle luxury items
- Built a strategy framework for brand extension, and definition ofthe product mix
- Defined the retail format based on existing retail space in India, target segment and economics of each format
- Shortlisted probable locations for expansion based on the market scenario, presence of target customer segments and its propensity to spend
- Built the overall store layout plan and financials for a 5 year duration with an investor presentation for the client.
The client received a complete strategic plan to launch its luxury silverware brand, along with the business model (including the financials) for a period of five years.