VIP Luggage

 V.I.P. was incorporated in 1971 under the stewardship of Mr.
Dilip. G. Piramal.
 2nd largest luggage maker in the world behind Samsonite, largest
in Asia.
 The Company also has stake of 100% in 2 companies namely
Carlton Travel Goods Ltd. & Blow Plast Retail Ltd.
 It has footprint in Middle east, U.K., U.S.A., Germany, Spain,
Italy & few of African & South East Asian Countries. 10% of its
annual sales are exported to these countries.
 It is a leading manufacturing Company which manufactures
trolleys, suitcases, executive cases, backpacks & other hard &
soft luggage's.
 It has won number of awards over the years;
I. Rajiv Gandhi National Quality award.
II. NIMA excellence award & many other prestigious awards.
 It has a very Strong Retail footprint with over 8000 retail
units,400 exclusive V.I.P. outlets in main cities.
 World wide V.I.P. products are sold across 1300 retail outlets in
27 countries.
 V.I.P.acquired a license from Delsey in the year 2000 a premium
brand-luggage manufacturer from France.
 V.I.P. acquired Carlton in April 2004 to gain access to European
Market.
 Carlton has been a world leader in Quality luggage for approx.30
years with presence in 65 countries.
 Company Strategy:
 Reliable after Sales service.
 Transfer of policy to dealers.
 World class R&D Lab. with spending's of approx.1.7% of its total
sales Per-annum.
 Presence in a wide range of Market Segment: Price of Rs.280 to
Rs.6095.
V.I.P. has a diverse Brand Portfolio.
1.V.I.P. happy journey:1971.
2.Aristocrat Luggage: More than 25 years old brand with 100

products of hard & soft luggage under the brand.
3.ALFA: Launched in 1989 which fulfilled a long standing need for
the value for money Traveller.
4.Delsey Design: Targeted international consumer based in upper
Socio-economic Group.
5.Carlton: It has 22 ranges of hard & soft sided luggage. Carlton's
most famous brands are Elanza[2 world patents and an original
design] & another brand Skate.
6.Footloose: Launched 2001;target group:14 years school going to
22 years management trainee.
7.Skybag: Launched 1993;quality soft luggage with 16 ranges.
8.Buddy: Launched as a school Bag.

 The Indian Luggage Market is estimated to be valued at
between Rs.2500 Cr. - Rs. 3100 Cr.
 Estimated to grow 15% annually, however the big money lies
in rather untapped unorganized luggage segment.
 The organized & unorganized luggage segment are valued at
around Rs.1250 Cr.each.
 Organized Market: Share of V.I.P.:55% and the next big
player Samsonite:25%.
 Unorganized Market: Chinese imported labels are
widespread.
 Samsonite[Competitor]:
 1996-Launched in India.
 2006-15% Market share in organized market.
 2010-25% Market share.
Future Planning
 The Company intends to set up around 50-60 stores for the
next 3-4 years with the actual roll out starting in October2010.
 Wants to strengthen its expertise & presence in the backpack
& laptop bags segment.
 Special focus will be on the semi-urban areas[tier iii & tier iv
cities].
 The focus of its International operations is going to be on cost
control, building operational efficiencies & improving the
profitability of International Business.
 Focus will be on product development & marketing so as to
continue to build the Carlton Brand.
 Plans to further strengthen its R&D & unleash a Global range
of Products.
 VIP now has a full fledged capacity to produce Polycarbonate
products: differentiated textures & styles at competitive price.
 Positives:
 Brand has a great recall value.
 Store location was not an issue due to wide network of stores.
 Quality of the product to vouch for but design aesthetics very
old fashioned: Common observation.
 Gifting item: Although a trend in villages only.
 Negatives:
 Youth are averse to the idea of buying V.I.P.
 Majority people were not aware of the Brand ambassadors.
 People were not aware of any of the new brands launched by
the company[e.g. Buddy School Bags]
 Showrooms were lacking aesthetical appeal.
 No recall value of any advertisement.
 VIP’s Journey ahead has to be characterized by a number of
changes, most notably in its Corporate Strategy.
 They will have to employ a multi brand multi location
strategy for premium & mass popular segment.
 Management Strategy:
 Offer strongly differentiated & innovative products at
aggressive price.
 Premium Brand Focus: Delsey & V.I.P.
 Economy oriented Brands: Aristocrat & Alfa.
 Skybag brand: Promote through fast growing Hyper-market
medium.
 Advertising & Marketing:
 Visibility is the key, should target tours & travels agencies,
airports: any travelling hub.
 Shed it’s Grandfather image & fuse in young blood look by
targeting youth through Ads.
 Rope in famous Bollywood personalities & bombard those
ads. at prime time.
 Build up on the products of Mass appeal, manufacture niche
products for class appeal.
 Showrooms & Aesthetics:
 Showrooms at prime Locations.
 Bigger & Aesthetically well maintained.
 Cordial & educated Salesmen.
 Youthful & vibrant look with good quality advertisements
throughout the store.
 Division within the store for different category products-each
section with its unique character.

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 V.I.P. was incorporated in 1971 under the stewardship of Mr.

2.Aristocrat Luggage: More than 25 years old brand with 100

8.Buddy: Launched as a school Bag.

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