Presented By: (Group-II, April-2016 Batch) 1

Arun Yadav 16PT1-10

Dinesh Kumar 16PT1-12
Jitendra Birhman 16PT1-14
Manoj Kumar 16PT1-16
About Victorinox’s acquisition of its main competitor Wenger S.A. in 2005

Main driver for Victorinox’s historical success was its Culture and
Orientation
• To provide our fellow human beings all over the world with practical,
functional, reasonably priced and top-quality products.

Strong Brand recall & presence worldwide (90% production exported)

5 Major Product Categories

• Swiss Army Knives

• Cutlery
• Watches
• Luggage
• Fashion
Dilemma is about how to diversify into fragrance business which is acquired
from Wenger? 2
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Pros of Fragrance Industry

Highly Fragmented Substantial funds

Cons of Fragrance Industry

Long-Term Growth needed for Start-Up
Forecast Local rules varies from
Mostly Unregulated country to country
Innovation is Important Various types of
– Victorinox Values & chemicals needed
Culture Limited suppliers of
Growth in Emerging primary materials
Markets (BRICS) Major Brands enjoy
customer loyalty
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 $ BN 23.5 Industry
Fragrance Worldwide Fragrance Market by Category
Market Share
Unisex
Unisex Mass
Asia Premium $ 200 MN
8% $ 300 MN
Africa Mass Men
Latin $ 3 BN
9% America
29%
Australia
1%
Premium Women
Eastern $ 10 BN
Mass Women
Europe $ 5 BN
9%

North Western Premium Men

America Europe $ 5 BN
19% 26%

Key Takeaway – America & Europe Major Consumers, Asia 6

Untapped, Men & Women both are substantial Consumers
 Fragrance Distribution Victorinox Sales
channels Apparel,
3.2%
Others, 6 Luggage1
4% $ MN 217
Grocery, 9

Watches,
Department 6.5%
Pharmacie Stores, 27
s, 14

Speciality
Stores, 29
Direct
Sales, 15

Knives,
76.5%

Key Takeaway – Diversification required for Victorinox 7

Else it can face challenges faced by Wenger S.A. post 2001
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Others Coty L'Oreal LVMH P&G Avon Estee Natura

2005 Est. 2010

Key Takeaway – Highly Fragmented Market, New & Smaller 8

players will grow, traditional players consolidating position
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Victorinox should diversify to Fragrance Industry

Victorinox has required reach to penetrate market (Through

Departmental & Speciality Stores – 55% sales in Fragrance Mkt)

Strong brand Recall and Perceived Value (Quality at reasonable

Cost)

Existing know-how at place through acquisition of Wenger S.A.

Wenger S.A. did business of $ 9.4 Mn in 2005

However no Prior Experience a weakness

80% of growth will come from BRICS Countries

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 • Victorinox has strong
brand Recall

Yes
• History shows ability to
transfer brand Attributes
• Chances of Success are
Higher with Brand
Transfer

• In case of Failure limited

No damage to own Brand

• Chances of Success
limited
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 Victorinox should use existing brand attributes to market perfumes

Utilize the perceived value of their brand

Products shall be based on their motto of Quality at Reasonable cost

Product focus shall be Middle class consumers

What Happened– Victorinox used existing brand 12

Swiss Army for Men & Women, Swiss Unlimited for Men
 Targeting
• Primarily Middle • Quality at
Class • Emerging Markets Reasonable Cost
• Both Men & Women (BRICS) • Smart Packaging
• Age Group (18-30 • Exotic Fragrances
Years)
Segmentation Positioning

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 Promotion
• Free
Place: Samples
• Tap existing • Ad
Price: distribution Campaign
• Premium channels • Leverage
Product: Only • Premium Brand
• Unique • Quality at retailers Awareness
Product Reasonable • E-Sales
• Exotic Cost Channel
Fragrance
• Premium
Packaging

Focus on Product Differentiation 14

Product and Promotion will be key to success
 www.swissarmy.com
 Google
 Wikipedia
 Quora
 Slideshare
 http://karimabadi.ca/swiss-army-case-study/
 https://fabnomics.wordpress.com/2011/10/22/segmentation-
targeting-and-positioning-an-application-to-the-perfume-industry/

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Q&A