VIP INDUSTRIES

VIP Industries Ltd is world second largest and Asias largest luggage maker based in Mumbai, Maharashtra, India. The company manufactures plastic moulded suitcases, handbags, briefcases, vanity cases and luggage. It has acquired UK luggage brand Carlton in 2004. It provides travel products, hard and soft-sided luggage, bags, backpacks, duffels, shoulder bags, waist pouches, sling bags, duffel trolleys, vanity cases, office bags and satchels, suitcases, and briefcases. The company offers its products primarily under the VIP, Carlton, Delsey, Footloose, Alfa, Aristocrat, Skybags, and Buddy brands. It also manufactures molded furniture under the Moderna brand. The brand chosen for this analysis is VIP Skybags.

The Marketing Environment

A companys marketing environment consists of two types of environments: 1) Microenvironment 2) Macroenvironment MICROENVIRONMENT FOR VIP SKYBAGS The Company (Internal Environment) The companys vision is To be the Global Leader in the travel products business The companys mission is Building enriching partnerships, pride of leadership and delightful experiences through innovation in all that we do

The people in their Management Team are as follows: Dilip G. Piramal Chairman Radhika Piramal Managing Director Premanand T Director Works Indranil Roy Vice President & Head Sales Manish Vyas Vice President Marketing Neeraj Dhingra Vice President International Business & CEO Carlton Travel Goods Sunil Kolhe Vice President International Sourcing & Product Development Vasant George Dewaji Vice President Design & Development Prashant Pandit CEO Ladies Handbag Division Suppliers The suppliers to VIP Skybags include the suppliers of materials such as polymers such as polyethylene (PE), polypropylene (PP), polystyrene (PS) and polyvinyl chloride (PVC). However the prices for these inputs are very volatile which have increased by up to 10% in the last year. Marketing Intermediaries In the domestic market it operates through its own retail store chain comprising of more than 150 stores, National Departmental stores and Hypermarket chains along with a 2500 strong nation-wide dealer and distributor network. Customers The customers for VIP Skybags include Consumer markets (individuals and households that buy goods and services for personal consumption), Reseller markets (buy goods and services in order to resell them at a profit), and International markets (buyers of all types in foreign countries).

Competitors The major competitors for VIP Skybags are Samsonite Corp., Blow Plast, and Universal Luggage Mfg. Co Ltd, with its Aristocrat, Oscar and Champion brands. It also faces stiff competition fro the unorganized sector. Publics Financial Publics: Central Securities Depository affects the working capital and the profitability of the company as it has recently with the delay in its payments. Media Publics: VIP Skybags is actively associated with the media through its endorsement with the Bollywood celebrity, John Abrahim. Internal Publics: The product involves moderate usage of labor activities and is sensitive to the labor movements and also the labor action groups.

MACROENVIRONMENT FOR VIP SKYBAGS

Demographic Environment As the population of India increases, the demand for bags is likely to increase. Also the majority of the population in India today falls within the working age group, which is also a positive factor for the demand for bags. Economic Environment On one side, the booming economic conditions of India have resulted in higher demand for bags as travel frequency for people has increased, while on the other side, the increase in input prices for soft luggage and recession have increased product prices resulting in lower demand.

Cultural Environment There has been a gradual shift in the ideology of the customers towards light weight luggage as contrasted to the more sturdy and robust hard luggage. This has favored the demand for soft luggage companies, like VIP Skybags.

Segmentation
The market for VIP Skybags is segmented in the following manner.
Geographic Demographic Psychographic Behavioural

Worldwide Urban

Age: 20 - 35 Males & Females Strivers and Global Indians

Upper middles, lower uppers and upper class

Regular, holiday and seasonal occasions Quality and convinience benefits Readiness stage: interested and intended to buy.

Targeting
Under targeting, VIP Skybags choses a differentiated marketing strategy and its caters to different types of customers differently, through the wide range of products under its VIP Skybags range.

They would differentiate in the following manner: They have big sized bags and trolleys for people who are likely to use the bags more for longer trips, like vacations, holidays etc. They have compact bags and handbags for people who are likely to use them more for business trips, which are shorter in duration. They also have laptop bag packs, for people who are always on the run.

Positioning
VIP has positioned its Skybags Range of soft luggage as a stylish luggage brand. With the objective to create brand awareness of Skybags brand and position it as a stylish brand, Ogilvy India conceptualized the TVC featuring Bollywood actor John Abhraham. It has positioned itself for a brand for the young generation who seek style and glamour in everything they use.