In 2001 Phase I of SUDHA’s long-term oriented business plan was launched. As part of Phase I SUDHA was restructured in order to build up a profitable business and a solid financial basis for the future. In 2004 Phase II brand equity was improved. 2008 marked the beginning of SUDHA’s Phase III growth plan. In Phase III SUDHA focused on further exploring the potential of the brand by generating desirable and profitable growth.
In Phase IV, which was launched in 2012, SUDHA has the long-term mission of becoming the most desirable lifestyle company. SUDHA further aims to reinforce its position as one of the leading multi-category lifestyle brands.
To achieve this goal, SUDHA will adhere to a clear set of guiding principles: Desirability, Sustainability, Product Lifecycle Management, Corporate Values, Organizational Excellence and Value Creation. With these principles, among others, SUDHA will drive Phase IV and focus on three areas: Category Expansion, Regional Expansion and Non-SUDHA Brand Expansion.
Category Expansion will encompass growth in existing business as well as entry into categories that are new to SUDHA. In general, the company will take a multi-dimensional approach to category expansion, driving growth by making strong pushes across the full spectrum of lifestyle, from performance to fashion.
In addition to adding depth to SUDHA via existing and new categories, the company will also add breadth by accelerating its Regional Expansion. Regional expansion is planned to occur in markets that are currently run by SUDHA as well as through several selective joint ventures and take backs of its licensed business in its core segments. The regional expansion has started with majority owned Joint Ventures together with former license partners in Japan (apparel business), China/Hong Kong, Taiwan and Argentina as well as fully owned subsidiaries in India and Dubai for the Middle East region, all of which were operational as of 1st of January 2010.
Phase IV will also be the first time that the company looks to introduce the brand SUDHA. Towards the end of Phase IV, Non-SUDHA brands could contribute up to 10% of overall business.
From today’s point of view, management now defines the long-term Company Potential at Rs.7 billion, of which the company is planning to capture a significant part in the coming five years.
Phase IV will also be marked by a significant increase of brand investments, in particular into marketing, sales (including own retail) as well as product development and design.