Skagen must target the growing economies like India, China, Vietnam, Brazil, Russia more aggressively as there is good growth opportunity here and Skagen being a Danish Brand (European heritage) still enjoys the status of exclusivity here. However we decided to do analysis on India as a market in this submission, as one of the markets for Skagen for aggressive growth.
1. Buyers: Skagen should continue to target the aspirational high income group to high income group segment. It can actually come up with a premium range/limited collection range, other than its regular one. It should target buyers who are willing to pay more money for an exquisite watch. These markets also have a huge potential in the eyewear and clutches (ladies small purse) category and should test these markets and try these buyers too.
2. Type: Skagen’s positioning in the Indian market can be that of luxury which is affordable. It should segment the market age group wise and the collection should have watches for two age segments above 30 and below 30. The above 30 segment should be more classy and elegant but that can be worn by even younger age groups as an occasion driven watch. The below 30 segment needs to more youthful in appeal. Also like they did in UK/USA associating sports with watches, they can try the same model in India with Cricket. It will have a mass appeal in their promotion. Skagen should target metros and small 2 tier cities as well.
3. Features: Skagen already has good quality standards and enjoys good reputation. However ensuring very high quality is a must as Indians are very price conscious and want the maximum value for money.
4. Uses: In India like in other countries Watches have graduated to be the fashion/status symbol dimension of the product. Festivals would be good time in India to come up with schemes to increase sales
5. Manufacturer: At this stage Skagen should continue with their existing manufacturing setup and should take a call depending on their popularity and growth in the Indian market to change any of the factor inputs sourcing.
6. Linkages: Currently Skagen is working with departmental store’s distribution in India and E commerce sites like Flipkart, Jabong etc. to sell watches in India. It is time to move to one or two flagship stores of its own in India. It will help up strengthen their brand presence and also they can successfully market their other lines like jewelries and accessories here. This way they can move up in the value chain from just being a supplier and manufacturer to the retailer level. It will also help them analyze Indian market better and develop a personal rapport with Indian Customers, which is missing in Skagen’s case.
7. Environment: The PLC for the watches category is in a growth stage. Skagen has a lot of scope for growth and introduce newer models in this market. A lot of foreign players have set their shop in India but Skagen’s price range and elegant models will give them the support of the huge and growing aspirational high income group. There is huge potential for growth.
8. Support: Skagen should spend a little more on awareness on its watches. It can use the internet to launch campaigns and make Skagen communities. It can customize the promotion content as per the Indian consumer. The target category for Skagen has got very good internet penetration.
StrengthsInspired and innovative design team.Products in line with latest fashion trends.Quick and flexible management decisions.Employee friendly HR policies and environment.Fast rate of new product launch.Strong relationship with manufacturers.| WeaknessLack financial strengths of its bigger and international competitors.Smaller budget for advertising and promotion.Management team lack insights about emerging markets of Asia and Latin America.| OpportunitiesSkagen’s watches mostly serve the...