Indian Luggage Industry
MARKETING PLAN
Ritu Patel Mangesh Nazar - Roll No 13051 Prashant More Monireh Ahmadifaraz Sanjiv Jain
Industry: Indian Luggage Industry
Brand Name: Absolute Regal
Company Name: VIP Industries Limited.
Background:
The Business Environment (1970-2007):
The Indian luggage market is an Rs 1200 Cr industry. The Indian luggage market mainly consisted of soft luggage and molded luggage. In the early days, there were selected players in organized sector and many players mainly in unorganized sector. Hence it was going through a tough time with low demand and stiff competition from unorganized sector. As frequency of travel is low, the luggage manufacturers are facing a unique problem of keeping their brand at the top of the mind of customers. The product is a high involvement product at the time of purchase but after the purchase the interaction with the product is limited.
The Company:
VIP has been the undisputed market leader in Indian luggage industry. Having launched in 1971, VIP successfully captured the luggage market dominated mainly by unorganized sector and established itself in the Indian market using product innovations, stress on quality and brand building. It was the first company in India to introduce “non reversible multi safe lock”, soft grip handle, dual action lock and central locking system. These innovations together with brand building made VIP a market leader.
However in late 1990’s VIP faced a formidable threat from Samsonite. VIP was very dominant in the mid-segment but did not have presence in the luxury segment. Samsonite established its presence in the luxury segment of the market. Soon Samsonite was able to capture a market share of about 35% in the luggage market within a short period of time. Additionally, VIP faced the problem faced by most of the known brands as the brand offered more generic value preposition in the mindset of consumers. Consequently,
Ritu Patel Mangesh Nazar - Roll No 13051 Prashant More Monireh Ahmadifaraz Sanjiv Jain
Industry: Indian Luggage Industry
Brand Name: Absolute Regal
Company Name: VIP Industries Limited.
Background:
The Business Environment (1970-2007):
The Indian luggage market is an Rs 1200 Cr industry. The Indian luggage market mainly consisted of soft luggage and molded luggage. In the early days, there were selected players in organized sector and many players mainly in unorganized sector. Hence it was going through a tough time with low demand and stiff competition from unorganized sector. As frequency of travel is low, the luggage manufacturers are facing a unique problem of keeping their brand at the top of the mind of customers. The product is a high involvement product at the time of purchase but after the purchase the interaction with the product is limited.
The Company:
VIP has been the undisputed market leader in Indian luggage industry. Having launched in 1971, VIP successfully captured the luggage market dominated mainly by unorganized sector and established itself in the Indian market using product innovations, stress on quality and brand building. It was the first company in India to introduce “non reversible multi safe lock”, soft grip handle, dual action lock and central locking system. These innovations together with brand building made VIP a market leader.
However in late 1990’s VIP faced a formidable threat from Samsonite. VIP was very dominant in the mid-segment but did not have presence in the luxury segment. Samsonite established its presence in the luxury segment of the market. Soon Samsonite was able to capture a market share of about 35% in the luggage market within a short period of time. Additionally, VIP faced the problem faced by most of the known brands as the brand offered more generic value preposition in the mindset of consumers. Consequently,