Jade eServices Pvt. Limited (Jabong), an e retailer of fashion products in India, frequently had to balance conflicting expectations from its supplier brands and consumers. The discounts that e retailers had to offer to consumers to generate adequate sales resulted in brand dilution, which compelled these brands to avoid the online channel. After permitting large discounts on Jabong's website for two years, a leading international sports shoe brand, Puma, determined to stop discounting product lines that were leading to 14 per cent of Jabong's footwear sales.
Puma products helped to entice new customers, and the choice of Puma had the potential to change the commercial conditions offered by other footwear brands, which would have more impact on Jabong. Jabong's director of sports attire knew that he was not likely to meet the needed increase amounts without discounts on the merchandises of Puma. He wanted a new strategy to compensate for Puma's drawback of discounting alternatives, and he wanted it immediately. Jaydeep Mukherjee has connections with Management Development Institute.
PUBLICATION DATE: June 30, 2016 PRODUCT #: W16394-PDF-ENG
This is just an excerpt. This case is about SALES & MARKETING
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