01.08.2019-498 views -Vip N Shadi. Com Case Study
VIP continues to be a leader ‘Kal Bhi, Aaj Bhi, Kal Bhi' with Strategic Improvements
Established four decades ago, VIP Companies Limited may be the flagship firm of the 200 million dollar DG Piramal Group. Its longstanding familiar American indian brand VIP is the greatest luggage brand in Asia and the second largest manufacturer of molded luggage on the globe after Samsonite. The initial VIP trolley suitcase was rolled out in 1971, and since after that over 60 million pieces of VIP baggage have been sold around the world. In the organized Of india luggage industry, VIP prospects with a 60 per cent market share, accompanied by Samsonite at 40%. In the international marketplace Samsonite leads with twenty percent market share where as VIP uses at 6% with operations spread throughout 5 prude and in 28 countries.
VIP's product range features a variety of hard and very soft luggage – strolleys, luggage, duffle carriers, overnight travel around solutions, professional cases, backpacks, and even college bags. In addition to the mother VIP brand, the company also owns other reputed brands such as Alfa, Footloose, Elanza, Good friend, etc . In addition, it markets beneath license Delsey products in India. In addition, it has acquitted the UK-based Carlton company in a bet to penetrate the Euro market. VIP's products reach over 8000 retail outlets across the country and over toll free outlets throughout 27 countries globally.
Since its launch, VIP has become an epic company synonymous with luggage in India. Usana products priced intended for masses, enjoyed a near monopoly until the mid'90s, and its expressive, powerful, and long-playing advertising campaign ‘Kal bhi, aaj bhi, kal bhi…. ' continued to be etched in public places memory for a long time to come. However , the scenario started changing with all the international head Samsonite's admittance into the India market in 1997. After having a few primary setbacks, Samsonite started cracking the American indian market and posing a challenge for VIP. Along with tha big t, a gabble of unorganized players as well started dealing with VIP on the lower end.
This kind of propelled VIP to take stock of the situation and realign its strategies with the changing market scenario. VIP found that while competition was warming up, the Of india luggage sector had already been growing due to a number of good factors. Most of all, steady financial growth acquired led to an increase in people's non reusable incomes, thus propelling the travel sector, which in turn got boosted the luggage industry. Regular travel for people who do buiness was likewise on the rise with organizations heading global. It was also redefining people's requirement of luggage. Ease and selection in suitcases based on certain travel situations had started out assuming perfect importance. Persons no longer viewed suitcases since just a ways of safeguarding and securing their belongings, although also maintained aesthetics, which will increased the importance of very soft luggage. Style, style, and attractive colors also well guided people's obtain decisions. Therefore, luggage got transformed from being just a functional merchandise to a trend or life-style statement. And folks were will no longer using the same suitcase for all those travel requirements, but obtain had become even more need-based with consumers obtaining luggage in respect to a particular type of holiday, trek trip or organization travel. Further more, luggage inside the premium segment had been growing the most.
In the wake of such changes, the age-old innovator in suitcases segment, VIP realized that kids perceived VIP as a brand owned by parents' and grandparents' time. In order to be in sync with all the times, VIP decided to modify this perception and reposition itself as being a contemporary way of life brand, which will catered in people who journeyed widely and followed a certain lifestyle.
Within the product front, it rehashed its soft luggage portfolio since that was the category driving sales. Besides it also allowed the business to play around with models, which were to become major qualifying criterion in baggage selection. Additionally , VIP as well started increasing the variety, designs and colors to the...