VIP CASE STUDY

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Vithaldas Ishwarchand Piramal(VIP)A very intriguing packageGroup no: 7 Members: Nandhini K Kiruthika M S Lalith Kumar R Vijay Prasanth R Pradeep kumar.v Karthik E(UNIVERSITY OF MADRAS)

2The company was incorporated on 27/01/1968 as aprivate limited company under the name Aristo Plast Pvt. Ltd., and commenced its activities by taking on job work in plastic moulding. The Company became a public limited company on 15/03/ 1973.The name of the company was changed to V.I.P. Industries Ltd., with effect from 16th June 1981.Industry :Plastics - Plastic & Plastic Products3COMPANY INFORMATIONVIP industry has sway for over two decades in the organized luggage market.Customers perceives value for money. Alfa is sold at much lower price. Alfa (VIPs economically price brand) sells 1.5 lakh pieces a month. Market Research shows that an average Indian family pulls out the suitcases merely for a outstation travel a few times a year.VIP has a wide range of market segment starting from Rs 295 to Rs 6000 a piece.4CASE INTRODUCTIONThe brand becoming generic to the category and local brands eating into the share of the company.It entered a price war with the unorganized sector.VIP was very dominant in the mid- segment, it had no presence in the luxury segment.It failed to create barriers for the competitors.It concentrated only on hard luggage.Its advertisement for premium brand was not effective.While VIP entered luxury segment, Samsonite entered the middle segment.

5KEY ISSUESPeople are not exactly moving to premium bags , but are moving to branded bags for sure.We find that the growth in airline travel and the sale of branded luggage sales are directly interlinked.Correlation between sales data and travel data is almost 0.95

6CHANGE IN TREND OF PEOPLE7SWOT ANALYSISFormidable competitor-1997Established its presence in the luxury segment of the market. Vip- dominant in mid-segmentGarnered a market share of about 35% in a short period of time.Samsonite meanwhile also wanted to enter the mid- segment ( 800- 2000 range).It launched the brand American Tourister to enter this segment posing a major threat to the market leader. Samsonite -international contemporary look -appealed to the new generation than VIP which was not perceived as a vibrant brand.

8SAMSONITE- COMPETITORTo counter the threat of Samsonite, VIP launched Elanza and Caprese range of premium luggage. Elanza(Rs 3250) -made available through select dealers only, in order to maintain its premium image.VIP set the price so high to preempt Samsonites entry in the super-premium segment of the market.

9HOW DID VIP HANDLE SAMSONITE Steady economic growth propelled the travel sector.Convenience and variety gained prime importance.Care for aesthetics increased importance for soft luggage.People no longer used same suitcase for all occasions.

Hence luggage has transformed from merely a functional product to a fashion or life style product.10FAVORABLE FACTORS FOR VIP2011-VIP ushers in the four wheeling revolution in india with the launch of its "360 wheeling" range.2010-VIP Introduces "Superlite" lightweight bags that enable you travel easier and pack more without the fear of paying excess baggage fees.2009-VIP launches water, dirt and stain resistant bags with Teflon.2008-VIP introduces the first of its kind business bags Coupe to keep your professional and personal luggage separately.2006-VIP launches Aura a tribute to the modern Indian woman who prefers to step out in style.2004-VIP brings in the concept of single stem trolley for exceptional control and effortless maneuvering.

11MILESTONES OF VIP12ANSOFF MATRIXMARKET PENITRATIONBy offering economic price brand and durable products.PRODUCT DEVELOPMENTIntroduction of new brands like Mantra & Skybags.MARKET DEVELOPMENTAcquired Carlton to enter global market and Alliance with Delsey.DiversificationDiversified in to manufacturing furnitures(Moderna) and health care.EXISTINGNEWEXISTINGNEWPRODUCTSMARKETSFor targeting the premium end of the market. Targeted younger consumers through style by offering printed and color bags.Helped to enter European markets. 1)This buyout provided VIP with a lucrative passage into the high-growth European market. 2)Carlton's strong brand and VIP's low manufacturing costs provide VIP with an edge over its competitors.13ACQUSITION OF CARLTONDelsey -international brand from France- for premium brand.This alliance makes VIP the sole manufacturer for the Delseys global hard luggage range."We want to become the hard luggage factory for the world," said Dilip Piramal.Combination of high end technology from Delsey and low manufacturing cost from India.14ALLIANCE WITH DELSEYDelsey was not willing to spend on the brands advertising in India.Delsey needed a more strategic involvement to establish its premium positioning. So they broke their ties with VIP and forged an alliance with Beauty Concepts.Consumers are moving towards branded luggage which reflects their lifestyle.

15 REASONS FOR TERMINATION WITH DELSEYChanged from Kal Bhi, Aaj Bhi campaign to Bye-Bye campaign.Used Happy journey as the base line.Shahid Kapoor and John Abraham became the brand ambassador.16ADVERTISEMENT

Marketing mix1718PRODUCTCarlton - international brand - premium segment.Skybags - stylish product - youth consumers.Alfa Aristocrat - value for money - low end people.Mantra ladies.Buddy- children.

Price ranges from Rs.850 to Rs.15,000.Alfa ranges from Rs.850 to Rs.3800.Aristocrat ranges from Rs.2600 to Rs.6700.Skybags ranges from Rs.680 to Rs.7200.Carlton ranges from Rs.5000 to Rs.14,950.

19PRICERetail outlets like The Carlton Store, VIP Lounges and VIP Industries store.More than 600 exclusive stores. Lifestyle stores, hypermarkets, army canteens and wholesale networks.

20PLACE

Print media.Electronic media.VIP Industries' 'Happy Journey' BTL campaign.Offered discounts.

21PROMOTION

22BCG MATRIXMARKET SHAREMARKET GROWTHHIGHLOWHIGHLOW23NET SALES24SALES SHARING PROPORTIONLaunched a eco-friendly bag called Acura(niche segmentation).Going to launch new polycarbonate range under VIP and Skybags.Looking forward to launch a range of luggage for women called Diva.These are lightweight bags specially designed for women travellers.As a market leader VIP is looking to enter more niche markets.25CURRENT PLANS OF VIPTHE TUMBLE TEST 50 REVOLUTIONS & OBSTACLES : this test is been carried by tumbling the bag in a tumbler at 50 cycles in a loaded condition.THE WHEEL TEST 32 KMS:Wheel is been carried for 32 kms in a loaded condition to check the wear and tear for wheels.THE LOCK TEST PUSH & RELEASE CYCLES : We check the locks durability by operating the lock for 15000 cycles in one go continuously.THE DROP TEST Dropping the bag 5 times on the ground at all corners and sides.

THE HANDLE TEST 3500 TIMES : Tested by giving jerks to the handle for 3500 times in a loaded condition.THE ZIPPER TEST 15000 TIMES, FORCE APPLIED TO SLIDERS & ZIPPERS : Force is applied to sliders and zippers to test the strength of zippers and pullers.

26QUALITY CHECK IN VIP

Along with growth in airline travel, international exposure and a lot of innovative work with branded goods has helped the industry grow.Brand repositioning efforts has paid off by helping VIP to retain its leadership position.By keeping in pace with the change in need of the people with highly innovative work and consistency in quality VIP will be maintaining its outstanding familiarity.As the consumer evolved, the product has also evolved.

27CONCLUSIONKeeping in pace with the taste of the customer will help to maintain its longstanding familiarity kal bhi aaj bhi kal bhi and long and happy journey.

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