ed case- 12.10
Transcript of ed case- 12.10
INTERVELA D.O.O.KOPER-VICTORY SAILMAKERS
PRESENTED BY C.MANDHAKINI R.GOKILA JASMINE R.JAYALAKSHMI DINESH A.HARISH K.HARISH KUMANAN
ABOUT ZVONKO BEZIC AND ZELJKO PERVOIC
Zvonko Bezic and Zeljko Perovic both born in 1962
Zvonko completed degree in pedagogy and zeljko completed in maritime traffic engineering
In 1988 Zvonko employed as journalist and Zeljko as a sailing coach in galeb
In 1988 both started making sails on their own
THE AFFABLE ESTABLISHMENT OF A COMPANY
Got loan from a friend under the following conditions
should their enterprise survive for two years, they would not have to payback the loan
but should they go bankrupt they would have to repay the loan with interest
In 1989 they started manufacturing regatta sails
Then they simultaneously started to manufacture sails for larger boats and yachts
Contd………
In 1990 the two decided to go into sail business full time
They learned about computer –aided sail cutting and were also able to obtain information directly from sail manufacturers particularly from Slovenia and northern Italy
In 1990 they bought a personal computer and sail maker software from Autometrix,USA
MARKETING STRATEGY
COMPETITORS
Olimpic Trieste Ulmer Kolius North Monfalcone Seaway Portorose Zadro Trieste
THE PLANS
An increase in sales of 58 percent over the next three years (1994-1996).
Gradual increase in market share Promotion of the company and its
products Improvement in the internal
efficiency of the company and the quality of its products.
SWOT ANALYSIS
STRENGTHSPriceQuality
WEAKNESSMarketing CommunicationStandardizationDesign
OPPORTUNITIESSelling larger series to
companiesManufacturing sails for larger
yachtsTHREATS
Market contractionPoor advertising Essential technological changes
The formulation
PRODUCT Standardization design improvements following trends closely introduction and improvement in
after –sale services
PRICE Competitive prices with regard to
individual customers.
PLACE The extension of distribution
network.
PROMOTION Personal contacts Promotion by means of a first –class
Sailboat -Gaia Cube-in races Distribution of promotional materials
to sailboat owners Advertising in Slovenian nautical
magazine “Val”
Intervala was the first to introduce double batten pockets.
Some local rivals copied this soon. The quality of their sails and the
good publicity gained when the “Gaia Cube” sailboat won races contributed much to the sales results.
A DECISSION ON THE CUTTER AND SITUATION IN 1995
• 1995- Sales increased to USD 128,300.
• New investment to purchase plotter-cutter.
• Visited Mr.DeMartisu of the Olimpic sail.
• Intervela d.o.o. Koper, a small liability company
wholly owned by Zvonko Bezic and Zeljko
Pervoic.
• They manufacture sails for racing sailboats and
keelboats.
• 90% of sales due to the Victory brand name.
• 1994- six full time staffs- USD 86,300.
• 1995- five full time staffs- USD 128,300.
THE PURCHASE OF A CUTTER
• In 1995- purchased three software
packages.
• ProSail- American software program- easy
to use particularly for the designs.
• SMSW- American software program.
• Crain- French software program.
• First half of nineties they start to use SMSW.
THE ACQUISTION OF THE KUTIN SAIL LOFT WORKSHOP
The 2 partners look for additional
workspace and staff in 1996.
As kutin sail loft declared
bankruptcy, they acquire this
company and moved their old plotter
to Rijeka.
In may 2000 new operations began
in Croatia.
ELAN• Before bankruptcy, kutin made sails to Elan,
which is the biggest producer of sailboats in
Slovenia.
• Problem between kutin-elan is because of
quality problems and customer complaints.
• One of the Intervela owner said that 60% of the
complaints is concerned with time taken by
them to produce sails.
• Elan desired to have an inland supplier.
They contact Rado Pelajic for
manufacture sails for small zeta
betas, but that did not last.
Elan contacted Intervela and enter
into a contract.
A higher price was quoted in that
contract because of higher quality of
Victory demand.
The two partners think that “this
would be some business to fill in the
gaps- in winter time when the
market is flat”.
• Difficulties in payment occurred.
• In spite of 60-day payment term, it was received
after 120 days or later.
• An Elan 333 Cruising boat was received as payment
in 1999.
• In 1999 Elan faced bankruptcy.
• Elan sent a writing-off proposal to Intervela but
they didn’t accept.
• In 2001, Intervela continued to do business with
Elan but they receive payment before itself.
• Orders from Elan increased.
• Total sales of Intervela in 2000-USD 550,000
THE GAIA CUBE PROJECT Intervela made their first sails for the
racing boat Gaia Cube Consortium in 1995.
In the period 1995-1997 they were also members of the crew and won races at the famous sailing event Barcolana in the bay of Trieste.
In 1998, the Kosmina family played the leading role in the consortium.
The company made money by selling sails for smaller sailboats.
PENETRATING THE GLOBAL MARKET WITH FINN CLASS SAILS
At the end of 1997 and at the beginning of 1998
Intervela started to manufacture sails for the
Olympic one-man Finn sailboat.
Kuret is a renowned Croatian sailor and he won
the Olympic race in Athens in Feb 1998 by using
Victory sailboat.
Olympic champion Mateusz from Poland want to
test the new sail at the Pre-olympic regatta.
From 1991-2001, he was the number one sailor
in the world using that Victory sail.
When Intervela started to produce Finn class
sails, they also started to cooperate with the
University of Zagerb, Croatia, where the first
analyses of sailcloth were done.
A comparison of various materials was made by
analyzing 26 parameters..
This helps the company determine the quality
of materials and on the appropriateness of a
material for their products.
The three factors which help them to
penetrate into the Finn sail markets
are;
1) development of sails –
Intervela developed a team of top
level sailors and offers them special
conditions such as adjusting the sails
to their specific needs.
2)novelty in sail design
technology
3) analysis of sail quality
Intervela was growing into a globally renowned company with the Victory brand name.
The sails are now being sold all over the world namely;
CanadaUSABrazilAustraliaChina ItalySpainGreece, etc..
EUROPEAN CLASS
The company also succeeded in
penetrating the European Dinghy
class market.
In 1999, the company’s sails
dominated the Slovene, Croatian and
Italian market.
Also dominate some sales in Poland
and Belarus.
THE OPTIMISTIC CLASS
In 2001, Intervela started developing a sail for the
Optimistic youth dinghy.
The company entered into an agreement with Sime
Fantella, the 2000 World champion and with his
father who was a coach.
They test their sails during the preparation stage.
As they were satisfied with the sails they start to
use it in races.
PROMOTION AND MARKETING IN 2000 AND 2001 At the beginning Intervela relied primarily on
word of mouth advertising.
The company did formalized promotion and
advertising in 2000 and 2001.
They advertised in specialized journals;
“Val” and “Navtika” in Slovenia
“More” in Croatia
Intervela company appeared particularly in the
Slovenske newspapers “Primorske novice”
In the Croatian they appeared “ Novi list”
newspaper and in the Italian journals “Fare
Vela” and “Giornale della vela”.
In 1998 website of the company was
designed.
They increased the number of “hits” or visits
by publishing news from regattas and by
reporting the results online.
They enlarged the Victory logo and decided on
a red-white combination for the brand and
background.
The company created the clear identity for the
Victory brand name by using special material.
They contract one of the factory to have
special sailcloth exclusively for Victory sails.
That material is Kevlar and the usual black
thread in the cloth was exchanged for a red
one.
Many sailors believed that novelty in the Finn
class is a new sail, they did not know hey just
used the new material.
In sailing clubs, they discussed , in
particular how sails operate and
trimmed.
Digital photos were shown and their
presentation focused on sails and
technical advice on trimming.
VISIT TO THE USA IN AUTUMN 2000
In the fall 2000, Zvonko Bezic and Zeljko
Pervoic went to visit some of the important
factories producing sailcloth material on East
coast.
Zvonko explained “ when we started, we could
not even talk or visit such factories or talk to
such sailcloth material sales representatives….
Today sales representatives visit us atleast
every three months…”
Main changes in the market
In ten years of existence Intervela
has grown and become an important
factor in the sail market.
“There is no recession, many people
are buying yatchs, sails… the
market is growing… and Intervela is
growing faster”…..
STAFF, OUTSOURCING AND REORGANIZATION
Intervela had 15 regularly employed individuals
working on contracts in Slovenia and 5
individuals in Croatia.
They outsource some parts such as bags and
reinforcements, to suppliers in Koper.
A sub-contractor was given two sewing machines
The company introduced special plotter to work
efficiently.
They also employ through the Employment
Agency of Slovenia.
The friend who helped the two partners at first
decided after the bankruptcy of his relatively
large company in Croatia help to establish
standards
Also improved the organization of the workshop.
He analyzed how much a worker can do per
hour, how much time is needed for each
element of the production process and their
capabilities.