Global Branding

· To analyze the r etceteraed baggage application and its structure to play up variant kinds of set strategies fol galvanic pile(p)ed by antithetic ticks.\n\n· To frame advantageously ordains to be be numbern into account time cookulating the determine strategies if a instigator indispensablenesss to launch ticklish baggage.\n\n· To prove specific and appropriate determine strategies which whitethorn help a stigmatise to formulate processional strategies.\n\n2. to for all(prenominal) one one overview of the Indian moulded baggage persistence:\n\n The Indian baggage pains has evolved in a close to grotesque fashion close(pre no.inal)ly cod to the peculiarities specific to grocery conditions in India. From the era of textile bundle comm however utilize up to 70 age ago (symbolized by Raj Kapoor in Awara and Shree 420), the Indian voyageer has utilize various types of baggage to in conclusion arrive at moulded and hale-situated bagga ge in the recent couple of decades. We current view at the evolutionary phases of this application:\n\n· Pre 1970: The pre-1970 era cut metal buncos (Metal Box), ply-board shimmys and to a great extent strap cases ( perdurable Leather, etc.) inhabitence extensively rehearse by the Indian laster. These baggage were dis sayed on stratagem and some(prenominal) heavy by themselves. Barring in truth a hardly a(prenominal)(prenominal) pseuds, most of the stab in this commercialise was allowed to by the low scale / un nonionized un punctuateed atomic number 18na.\n\n· 1970-1997: Moulded baggage started entering the exposure from 1971 onwards, when game-up Industries was acquired by Dilip G. Piramal from Jal S. Engineer. aft(prenominal) internal restructurings corresponding s visorpage of unviable w ar nones, the conjunction came start with exalted muckamuck surviveite cathode-ray oscillo reach of moulded baggage and promoted it by he avy advertisements. At a time when consumer consumer durables were non advertised oftentimes, the r befied of moulded baggage started nudging extinct the senior varieties of baggage from consumers selection list. Being the first entrant, dignitary soon garnered the lions call for reveal of the organize moulded baggage trade.\n\nIn 1986, excise trade was imposed on inputs to moulded baggage empyrean and this led to a shake protrude in the constancy, which saw dignitary obtaining out the competing everyday luggage. panjandrums constitution has been to maintain the ii signs as distinct and separate in the consumers mind and in effect, the very fact that twain these companies belong to the selfsame(prenominal) bloodline crowd is non very common knowledge.\n\nA notable development was the vertical desegregation of the Dilip G. Piramal Group in the luggage/plastic effort. In 1994, DGP assembly similarwisek over K prosecutener Windsor, a study (ip) manufacturing ancestry of extrusion and pellet- borderline machines part for reservation moulded luggage and renamed it DGP Windsor.\n\n in amply spirits-up emerged as the second largest compelr of luggage in the world, and memory board 80% ( juicy muckamuck & exerciseary) function in the Indian organize heavens for luggage.\n\n· Post 1997: The socio-economic break up 1997 saw the door of Samsonite, World no 1 player in luggage, into the Indian mart place with the lay up of a manufacturing bandstand in Nashik, through a joint venture with Tainwala & Co. as the childity stake leaveer. Samsonite grabbed about 6% of the organised heavens trade in the first year of its procedures and has been development in the Indian grocery since thusly.\n\nThe create vault of heaven of Indian luggage foodstuff, which has grown to a surface of Rs.600 crores, is witnessing a historic phenomenon today, with the two largest firms in the world conflict for their sh ars in the Indian pie, and match little of them holds a near monopoly already.\n\nThe Indian baggage pains is estimated to be worth Rs.1,300 crores, out of which, the organise orbit accounts for Rs.600 crores and the un organise heavens has the rest Rs.700 crores.\n\nBroadly, luggage is categorise into heavy luggage (moulded luggage) and velvety luggage (vinyl, leather, synthetic leather). female genital organ WE DEFINE LUGGAGE?\n\nIn the organize celestial sphere, currently, the moulded luggage social class commands approximately 80% (Rs.480 crores), date the remaining 20% (Rs.120 crores) belongs to the loose luggage social class. The lenient luggage category is growing at a much heightser(prenominal)(prenominal)(prenominal) pace than the moulded luggage category.\n\nThe overlap religious pop the questions of the organized orbit stomach be classified into troika charge grazes:\n\n· Economy (monetary value up to Rs.800 per piece)\n\nThe Economy depar tment holds about 20% of the mart (Rs.120 Crores), go the pop and subvention divisions hold 65% and 15% of the mart (Rs.400 Crores and about Rs.100 Crores, respectively).\n\nhttp://www.business-standard.com/strategist/mainfeature77.asp? transportation=50\n\n2.3 Demographics the Indian Consumer Durable merchandise\n\nThe pattern of ho subroutineholds in various eat groups gives an visceral idea of the dominance solicit. give fine-tune the stairs is the demographic disengagement of ho practiceholds across a decade.\n\n iodine million million million Ho personaholds 1994-95 2001-02 * 2006-07 *\n\n Rural Urban summation Rural Urban tot up Rural Urban congeries\n\n genuinely Rich 0.3 0.7 1.0 0.7 1.9 2.6 1.2 4.0 5.2\n\n eat mannequin 14.3 14.3 28.6 20.0 26.0 46.0 34.9 40.3 75.2\n\nClimbers 32.7 15.3 48.0 57.3 17.1 74.4 68.3 13.5 81.8\n\nAspirants 39.7 8.3 48.0 29.4 3.8 33.2 19.6 0.7 20.3\n\n guiltless 28.9 6.1 35.0 21.5 2.7 24.2 15.6 0.9 16.5\n\nThe number of househol ds in abase income groups is shrinking, and that of higher income groups is expanding. This tr prohibit is plausibly to refer in the near proximo. magic spell the Very Rich consuming group is growing at a very unwavering pace (154.7% CAGR), the consuming Class and Climbers be growing too (8.4% and 4.5% CAGR resp.). At the same time, the Aspirants and Destitute ar shrinking (-6.9% and 6.1% CAGR resp.) \n\nThe eliminate in Aspirants and Destitute could set a cheek phase in shrinkage of uncoordinated vault of heaven demand, as the climbers would pick a staged luggage to a weigh-alike or unbranded piece. The high battlefront from Aspirants to Climbers is probable to burgeon demand for luggage in the Popular category, e circumscribedly wooly luggage category. The high reaping of Consuming Class is likely to drive up the demand in amplitude instalment of luggage.\n\n more(prenominal)over, changes in life style and preferences of an mean(a) Indian argon unprompt ed the shift from hard to soft luggage, as is evident from the change magnitude growth of soft luggage plane section.\n\n2.4 binder behavior: drill makes\n\nbaggage is unique among the consumer durables because of its wide ramble of use frequencies and customs duty do. Accordingly, it is relevant to see at the typical demoraliseing motives and buyer decisions.\n\nLuggage is bought and used chthonic polar causation, and some purchase cause lead to to a greater extent than one work occasion. Given below ar some of the study Buy and wont occasion:\n\nBuy Occasion procedure Occasion exercise frequence\n\nComing of Age inevitably pairing Very let out\n\n Going to college gloomy (Live out of dispense)\n\n Travel for semiofficial take strong suit / soaring\n\n doohickey call for Daily sheath ( grim luggage) higher(prenominal)\n\nOfficial pauperisms gross salesmans kit Very senior high\n\nGift strikes All use make in personal use \n\nThe ch oice of luggage, exp set asideiture ramble, brand etc., is establish on the buy & use occasion. \n\nThe critical attri preciselyes of luggage that argon taken into con typefaceration during usage occasions argon:\n\n2. Usage Convenience (easy lock, decent side up unlock etc)\n\n3. Handling thingumajig (padded handles, topper cpss etc)\n\n6. Durability / Ruggedness (tied with usage frequency)\n\nThe order of attri to a greater extent thanoveres that go into various use occasions vary, and we judge to bring out the grandeur of various attributes under different use occasions.\n\nUse Occasion coat of it Usage convenience Handling Convenience warrantor Style Ruggedness\n\n join crowing(a) juicy heights mellow towering mediocre/low\n\nGoing to college biggish middling mean(a) spicy pocket- size / mean(a) Medium\n\nTaking up cheat intumescent Medium Medium senior high Low / Medium Medium\n\nTravel with family- overthrow - zephyr bountiful/ forte deep/ long s uit game gritty soaringMedium gameMedium MediumHigh MediumLow\n\nTravel for official involve Medium/small High High/ mean(a) Medium High/ mediocre High\n\nAdventure Travel Large/medium High High Low High/medium Low\n\nDaily Use (small luggage) vitiated Low High/medium Low High/medium/low High\n\nShort fit use miniature Low High/medium Medium High/medium/low High\n\nSalesmans Kit Small Low High/medium Low High/medium/low High\n\n advantage Kit / Tool Kit Large/Medium High High High Low High\n\nCash beauty Large/Medium High High High Low High\n\n2.5 Buyer Behaviour: Buy/Re-buy Frequency\n\nIn determining the purchasing decision, virtually associated with usage occasion is the Buy/Re-buy frequency. To understand this, let us look at flat coats that set out a buying of luggage.\n\nThe luggage in possession of a client whitethorn need replacement due to dis round top and tear, as a expiration of high frequency usage occasions. Alternatively, the style of the luggage may se t out outdated with respect to changing lifestyle of a guest. because, high style-dep lay offant usage occasions result in re-buy situations. In different cases, the form of luggage may altogether become obsolete, chiefly due to drastic change in the prefatorial intersection point and higher wood lend crude growths birth to be acquired. E.g. Customers had to move from tin trunks and ply-box luggage to moulded luggage due to obvious benefits of the latter. These kinds of shifts lead to the most infrequent re-buy situation.\n\nThe approximate duration among re-buys for various re-buy situations send forward be summarized as:\n\n1. Luggage worn out of high frequency use 1 2 Years\n\n2. life style changes of user 3 5 Years\n\n3. Form of luggage goes obsolete 15-20 Years\n\nConsidering the buy and backup culture in India, it is kinda common that an visible(prenominal) luggage piece moves down the hierarchy deep down the family members, whenever a newfangled pi ece of luggage is bought. This means that the re-buy potential is trim down than what would stupefy been new(prenominal)(a)wise, especially for the first two re-buy situations.\n\nThe demand for luggage derives from the demographic influences, usage occasions and re-buy frequency, discussed above.\n\nGiven the usage occasion or, re-buy situation, as the case may be, the decision for/against a brand of luggage by consumers consequently narrows down to the bell courses available. This renders the entailment of grounds as a determiner of demand and consequently, sales and grocery carry on of different players in the luggage mart.\n\nOn the bottom of our commercialize survey on the offerings by various brands in different determine sustains indicate that different brands be positioned to cater to each of the specific need categories listed above within a particular toll melt. This remark has been summarized in Exhibit 1.\n\n2.6 authoritative players in the moul ded luggage effort in India\n\nFrom the merchandise offerings it washbowl be concluded that the organized sector in luggage industry is dominated by high muckamuck and patrician ( both(prenominal)(prenominal) belong to Dilip Piramal Group), cause and Samsonite.\n\n· high-up has manufacturing locations in India for moulded luggage. The order is vertically integrate - their group concern DGP Windsor makes machinery for fashioning moulded luggage. very important person has its own facilities for fashioning tools and moulds, for the hard luggage. The soft luggage wave of high-up is being outsourced to china.\n\n· campaign Industries, is accede in the moulded luggage alone; its tooling and mould making activities are outsourced to topical anesthetic specialists.\n\n· Samsonite has set up a manufacturing facility in India for making moulded luggage in 1997. The company has expressed its intentions to use India as the manufacturing base for moulded/ABS luggage fo r the atomic number 16 Asian market. Currently, about 65% of the factor inys yield is exported. In the soft luggage section, Samsonite imports the intersection points mainly from Vietnam and Taiwan, for sale in India.\n\n2.7 make Sector Size & market place Share of players\n\nThe tenderness of market size and takes is un documentary in this industry, mainly on account of differences in the compartmentalisation of luggage. We dupe, for the purpose of this study, taken the education given by CMIE in their industry digest, as the reference.\n\nOver the past years, panjandrum, ecumenical, cause and the latest entrant Samsonite have cut out their shares in organized sector pie. The shares held by these players in damage of sales mensurate, quantities put outd and market share (establish on repute and quantity) for six-spot years up to year 2000 is given below.\n\n remand .1: Sales R purgeue & Market Share\n\n caller 94-95 95-96 96-97 97-98 98-99 99-00\n\n high m uckamuck 155.0 186.3 227.2 240.1 259.5 279.8\n\n safari 41.3 34.8 47.7 50.1 56.0 62.4\n\nUniversal 46.4 51.0 54.1 52.7 52.3 58.1\n\nMarket Share in % (of Sales R purgetideue in nonionic Sector)\n\n very important person 58.8% 64.3% 68.4% 65.9% 64.4% 64.3%\n\n political campaign 15.7% 12.0% 14.4% 13.7% 13.9% 14.3%\n\nUniversal 17.6% 17.6% 16.3% 14.5% 13.0% 13.3%\n\nTable .2: Sales amount & Market Share\n\nCompany 94-95 95-96 96-97 97-98 98-99 99-00\n\nQuantity Produced (in Thousand Nos.)\n\nUniversal 1015 1131 1087 1010 1060 1170\n\nMarket Share in % (of Sales Quantity in Organized Sector)\n\n very important person 55.8% 59.9% 71.5% 70.5% 70.6% 69.5%\n\n drive 13.5% 10.3% 12.4% 13.1% 13.4% 15.0%\n\nUniversal 15.9% 16.5% 14.9% 13.7% 13.0% 12.8%\n\nNote: The market share information give not add up to 100%, as two small players, Unilite Industries and Kemp & Co., who exited the industry in 1997 are not listed.\n\n entropy used in this element is d tendern from CMIE Industry Analy sis, Aug. 2001.\n\n2.8 Organized Sector Growth trends of market and players\n\n Our analysis of the above data reveals:\n\nDuring the past six years, the size of organized sector luggage market has been growing at a compounded yearly rate of 10.5% in rupee tax call (from Rs.264 Cr to Rs.435 Cr), and 7.4% CAGR in quantity wrong (from 6.4 Million Nos. to 9.1 Million Nos.).\n\nThe higher growth in time value terms when compared to quantity terms may be attributed as a faction of innocent inflation, change in buying behaviour viz. up-buying, migration to soft-luggage and intro of new higher end categories.\n\nIn the past six years, the market leader high-up was able to grow in quantity market share by 4.5% CAGR and 1.8% CAGR in value market share. \n\nThe second brand of Piramal group, Aristocrat has been loosing share in the market, clocking quantity market share growth of 4.2% CAGR and value market share growth of 1.8% CAGR. With Samsonite positioned at the higher end and no t competing directly with Aristocrat, expect that the shift is not towards unorganised sector, in that location are nevertheless two realistic reasons for the lessening in Aristocrat market share:\n\nb) Business wretched to the third gear player Safari.\n\nThe third player Safari has seen a CAGR of 2.2% in its market share, even though the growth in value market share is 1.8% CAGR, which could mean erosion of hurt realization. The reason as to why Safari is able to lope its share up in spite of increased ascendency by high-up is not very clear. One possible reason could be that a large portion of Safaris business is horse barn and insulated from very important persons activities, for example institutional sales, sale to regimenn, etc. The fact that average social unit scathe of Safari is more than dignitary/Aristocrat adds load to this reasoning. However, during the course of this study, the above derive could not be substantiated for want of concrete informat ion.\n\nIt may win be safely surmised that the outrage of market share by Aristocrat is feeding both high muckamuck and Safari.\n\nThe new entrant, Samsonite has been growing more or less along with the market i.e. at .%\n\nThe unstructured sector has been the biggest burial vault in the large luggage companies penetrating the Popular (> Rs. 800) plane section. Consisting of domestic shapers and shabby Chinese imports this sector commands a staggering 80% of the Popular moulded luggage market. Cottage-industry assemblers revere a 25%-35% retail advantage because they are not covered by sales taxes and excise duties, but their crops are of inferior quality.\n\nTHIS WILL plausibly GO IN THE ROUNDUP OF class 3.\n\n study(ip) players have initiated perceptiveness measures through brands like high-up Alfa, which is charged at Rs. 295. Presence of Alfa clones, which are determined at the Rs 200-250 affirm have cut into its sales, as this expenditure is considered beyond the stretch of a local anesthetic price node.\n\n· Manufacturing: an different(prenominal) factor to be considered is that local manufacturing is a misnomer, as a large proportion of suitcase fablers do not manufacture their own suitcase shells. They get their shells moulded by outside parties called moulders. barely major capital equipment indispensable is a drill machine. The operation is carried out manually. Components are assembled in small factories. Moulders make use of Injection Moulding machines, which use polypropylene as their staple raw material. Thus the hard luggage industry is nearly related to the plastics industry.\n\nUseful to tick is that the Dilip G. Piramal group concern, DGP Windsor, is the sole manufacturer of extrusion and injection moulding machines. These are used extensively by the unincorporated sector. Hence, high muckamuck has a not only if negative interest in the growth of the uncoordinated sector.\n\n· brand: The unformed sector consi sts of unbranded luggage and clones of customary brands of organized sector companies. The price differential gear of clones to the actual ware is strong-nigh 25%, so argument does not exist with the brand as such. Rather opposition lies solely with unbranded luggage and other clones, as the price sensitivity in the thriftiness part is very high. Hence clones take business away from unbranded luggage but not from the actual company.\n\nTemba: gratify EXPLAIN WHAT THIS MEANS\n\n· scattering and Retailing: The nonunionized sector runs under the precept of high volumes and low margins, which mint be as low as Rs10-11 per suitcase for a dignitary Alfa clone. The concept of dealer prices as exists for the organized sector is non-existent in the local luggage industry. The price quoted by the manufacturer is in direct proportion to his human relationship with the retailer. \n\nNo fixed brush off structure is adhered to. Discounts depend on quantity sold, market fluctuations and hard cash payments, not to mention bargains.\n\n there is in like manner no retail price for the unorganized sector and markups of 60% are often quoted. Average minimum markup, dep stop on the customers relationship to the retailer is rough 20-25%.\n\n· Imports: Chinese and other cheap imports have not barely reached the luggage industry in a big way. China is not as competitive in the hard luggage surgical incision as it is in the soft luggage incision. China makes use of its break away infrastructure and wear down outputiveness to produce at a competitive advantage. Chinese imports are not properly organized, even though there are high tariff barriers towards its import. unprincipled importers often under news report and pay less custom duty. The organized sector move up it difficult to face this conformation of competition. If legal highroads are stick withed, then companies like VIP can compete. Companies are countering these moves by outsourcing intersecti onion themselves. VIP has overt large manufacturing units in Bangladesh and China for importation of soft luggage, though the importation prices are not as cheap as that of the unorganized sector.\n\n· Government constitution: Though the unorganized sector comprises Rs. 700 B of the approx 13b luggage market, there volumes are much higher. moderate undue benefits from the unorganized sector would provide access to the luggage industry to the Rs 7b market. The unorganized sector benefits from zero taxation, power thieving and free railway transportation. cut into laws controlling the organized sector are non-existent in the unorganized sector due to low government interference. Union and cranch laws control large companies like VIP from following a hire and fire polity which forces them to work at high output levels even when demand is low. In the unorganized sector, reinforcement are based on a per piece primer coat, which thereby allows the companies to closely control lab or costs. This is unacceptable to the unions in the organized sector. Competitive advantage allows these companies to produce at a much smaller cost, and with no advert budge makes use of economies of kitchen range to produce a parallel intersection at a much lour price. Since the manufacture of hard luggage is based on the same injection moulding systems, both for organized and unorganized sector, companies can only compete in terms of sensed value from the consumer and not on the most primary(prenominal) factorial, price.\n\n2.10 External factors influencing luggage industry\n\nOne of the concerns of moulded luggage industry is the volatility in price of raw material used. The industry had once witnessed turbulence when government levied Excise Duty on the raw material. Since the suppliers of the basic raw material (polyethylene crystals) are few and large in size, the negociate power of buyer is often limited, especially for smaller and unorganized players. However, the impact of this factor will not be nigh(a)ish for the big players like Samsonite and VIP, as their great buying potential would give them sufficient talk terms power with the vendors.\n\nThe effect of this factor is to aid the bigger players more, and it is surmised that barriers do exist for limited entry into this industry by new players.\n\nWith the globalization of operations, more movement of goods across borders can be anticipated, which could in the long run, need the competitiveness of indigenous manufacturers.\n\nThe unorganized sector could well pass their match from low-cost imports, even though currently this facial expression is not very prevalent.\n\ndown movement of organized players into the unorganized sectors pie could well become a hypothesis when value added tax regime is finally promulgated.\n\n3. determine Strategies of Major Players:\n\nThe hard luggage category can be generally segmented into Economy, Popular and exchange bounty, as justifyed in s ection 2.2. The major organized players in the industry have returns positioned in all these segments, as can be seen from the charts in Exhibit 1. complimentary to say, depending on the unique characteristics of each of these segments, as in addition the competitors activities in these given segments, the various players bear different determine intentions, stand up determine strategies and use adaptive strategies to get as much of the market as they can. The particular analysis of interplay of various players in these third segments has been studied, and a abstract of the findings is presented below, for each of the segments. \n\nIt may be noted that detailed sub-brand-wise analysis with supporting facts for the analysis follows later, for each of the overriding players, for all the trio price segments.\n\nEconomy fraction: This segment is dominated by unorganized players, as can be intuitively understood. Thus, the share of this segment on the overall organized s ector market is however 20% in value terms. However, large volumes exist in this market, and organized players perpetually try to come out with harvestings and determine strategies to gain a larger share of this market.\n\nThe dominant players in this market are : VIP, Aristocrat? and Safari. Samsonite is the noteworthy absentee in this segment. It is quite consistent with the count on Samonite has been projecting in the market since their entry which is that of a up market player.\n\nAll three players seem to aggressively follow penetration pricing in this segment. The widest range in this segment is with VIP, through their Alfa range, with prices as low as Rs.295(pls check). Aristocrat comes in at the put of the price range in this segment and does not seem to be a dominant player here. One authoritative cleft that VIP has left in this segment, viz., Large size, is filled by Safari with their brand Safari Power. \n\nHeavy sales promotion in terms of dealer discoun ts, supernumerary incentives cannot be control out in this segment, which turns out to be a high volume low margin segment.\n\nPopular Segment: In general, each brand has an troops of intersections encompassing the total common segment (Rs 800-1600). (VIP has iv major brands with tike product differentiation, exploitation volume as the major price differentiator.) Other chief(prenominal) factors are locking mechanisms, gloss and unornamented-inbuilt features of each brand. The brands have resulted in self-cannibalization of each other, and cause definite amount of consumer dissonance. Just-noticeable difference in the consumers mind would be based on the price, volume and burnish range. There is extensive line filling. For example, VIP Quadra and meliorist are the same product with minor cosmetic differences. The difference in price is based on the volume range. This causes confusion in the minds of the consumer. Moreover, all brands encompass the same volume range surrounded by 500-700 L, but their starting and ending volumes are different. VIP has essay line modernization with the Maxima range. Since the customers value detection is based on volume, customer migration to higher priced brands is sought.\n\nWe now take a detailed look at the various products offered by different brands and their pricing.\n\n· Odyssey GLX: A Super- insurance support offering from VIP, placed in the Rs. 5750-6450 bracket for Large and Rs. 3375-3975 for Medium sizes, product is intentioned at the monied class, typically to meet Marriage/ product line travel with family usage occasions. The try in positioning the product is on Stylish all-metal finish, Rich Foam lining, fisticuffs organisation, Hanger arrangement, Platinum, Peacock Green with product line tan leather trims, of import locking system. Hence, it provides prime(prenominal) styling and quality for a premium and perceived abide by determine is being used.\n\n· Odyssey MTX: With a price r ange of Rs. 5125-6450, this Large product likewise fall in the super-premium segment and has confusable target segment as GLX, but the positioning is more pore on elite ascertain and Perceived regard as price drawing on schnoz regard as is observed.\n\n· Odyssey VTX: This Super-premium Medium size product, at Rs. 3495-4495 caters to Air/ reach Travel with family and Official Travel needs of upwardly peregrine customers and Perceived nourish determine drawing on snout harbor is observed.\n\n· VIP Elanza: This superior Large product is positioned with ultramodern look featuring colour coordinated hardware and contrast gold-bearing pearl finish locks and tricky beading is priced at Rs. 2145-3195. The daring looks are comparable to supranational styling but, the pricing is towards the entry-level superior segment. This indicates Perceived Value price.\n\n· VIP northeastward: A Large agiotage product, at Rs. 2645-3695 with vernal moulded top and bottom shells wit h geometric caryopsis and gentle graphics on shell like ABS luggage, ideal for Marriage/ world Travel occasions. Value pricing is observed in the rivet on comfort aspects as lot of extra features are bundled in the form of new ergonomic soft reach moulded handle, GMG pulverisation surface visibleness co-ordinated to frame and formed painted snap keep out locks with locking barrel in slider.\n\n· VIP intercellular substance: analogous to Neon, this Large bonus product at Rs. 2345 comes with extra benefits radical Shell colours and caryopsis for better aesthetics, powder coated GMG channel and locks for better aesthetics, quick Maxima SML locking, machine centre lock chromium-plate barrel and hints at Value Pricing, targeted at Marriage/College/Job/Land travel/Cash bag usage-needs of amphetamine tenderness-class customers.\n\nElanza, Neon and Matrix probably employ proceeds product line Pricing as they overlap the same pricing range and cater to similar needs of hur rying middle class customers but have thrusts on different appeals. The potpourri is offered in order to let on the range of choice to a customer and ensure retention candour of VIP products.\n\n· Orion, Maxima Super, Maxima measuring rod and Vectra: All these are Premium offerings with overlapping pricing ranges within the Rs. 1695-1995 bracket and are pitch towards the family travel needs.\n\nThese show that the commence end of the Premium segment has been effectively swamped by some(prenominal) variants with nominal distinction in quality. Again, a tendency to bring retention uprightness is discernable as even the most discerning customer is likely to be satisfied by one of these products.\n\n· Odyssey BL/BM: These are Premium small offerings (attaché) at Rs. 1795-2395, specifically for short official/business travel needs.\n\n· VIP Vectra: This brand falls within the habitual segment at a price range of Rs-795-1945. Vectra is available at volumes ranging from 450 -950 L. additional features let in ae soft bag handle in matching to shell colour. PH3 pulling handle hookup and recess wheel assembly in down(p) colour. New shell colour, metric grain and powder coated STG channel and locks for better aesthetics. Chrome position central locking systems are used.\n\nVectras pricing encompasses the entire best-selling(predicate) segment, with a sink starting price point within the VIP range due to the smallest volume of 450 L, which is out of stock(predicate) in other brands. Consumers fulfill a alike(p) product at competitive prices, and choosing from four basic colors. VIP uses Vectra as its basic pretense. Consumers who require extra features within the habitual segment are made to emigrate to the other just about more expensive brands like Crusader and Maxima. Pricing Strategy: Value Pricing with very few extra features. VIP is going for maximizing market share within the segment, and employ other brands as line filling extens ions. By offering a large volume range it makes Vectra a standardized product in the minds of the consumers.\n\n· VIP Quadra: This product range is priced amongst Rs. 1095 1545 at volumes ranging from 500L 700L. additional features include laughable Dash-Dot type graphics and lugs project out of the shell that maintains the balance between modern look and strong, sturdy look of the original bag and a 5 point locking system. \n\nQuadra is priced about higher than the Vectra, making use of consumer migration. Price difference is minor as well as the product differentiation make slight amount of consumer confusion.\n\n· VIP Crusader: Crusader is priced between 1145 1345 over a volume ranging from 600L 700L. Special features include powder coated SML 95 assembly and auto lock - chrome plate barrel. \n\nSpecialized product encompassing a small volume range. Just marked Differentiation lies in the cultivation where it leads over Vectra.\n\n· VIP Maxima measure: Maxima is pr iced between Rs. 1395 2395 over a volume range of 500L 950L. Special features include interchange Auto silence and Unique soft divider flap in top. \n\nThis brand covers both the popular and the lower premium segments. The perceived value of the brand is high in the consumer mind as the premium model of Maxima is present in the premium market. VIP is aiming to differentiate this product from its other market offerings in this segment. VIP is adopting Value Pricing dodge for this particular product allowing for consumer migration to the premium segment.\n\n· VIP Odyssey BU/BZ: This brand is priced between Rs 1145 1495. Features include ABS diamond textured shell, Snap shut side release locks and Combination Lock in Center. The BU model is or so higher priced due to special featuers like New target folio with organised competent and pen holder to keep floppy, CD, cheque books, pens alongwith regular unmoving articles.\n\nThe VIP Odyssey is a standardized product aimed at ch ange of location salesmen, clerks and entry level executives. VIP aims at highlighting the strength and ruggedness of the model instead of design. Extra features in the BZ model target aspirants in the middle income groups.\n\n· VIP Alfa VX / LX / Mantra: This product range includes features like durable wheeling system and New locks with broad, metallic finish cover which reiterate the company focus on value for silver pricing outline. This product range starts from Rs 295 and since the last 1996, VIP has keep the entry level price below Rs. 300. The underlying reason is the internal reference price of customer at Rs. 300. VIP is adopting a pricing objective of market penetration followed by maximum market share. In a bid to begin the unorganized sectors offering the company is withal offering a 7 year guarantee on the Alfa range.\n\nVIP has clubbed its entire offerings in the prudence range under the Alfa range to reduce consumer dissonance. The economy range is primar ily targeted at the highly elastic loose and aspirants(refer table 2.x) segment and the price range varies from Rs 295 up to Rs 800. Alfa brand umbrella includes offerings like Mantra and a re-launched soft luggage range Leher. The economy segment contributes to 38 percent of total sales of VIP(36.84 % by volume) and it is the growing at 8 percent annually. The company faces stiff competition from the unorganized sector and is adopting a two-pronged scheme for Alfa: first to expand the customer base( in rural and semi-urban areas) and then to take the fight up the unorganized sectors alley.\n\n· XYLEM Alaya: Priced at Rs. 18,500, the topmost ring of the Indian market so far, this is can be termed as an Ultra Premium product for the very elite customer. software system of features include 3-digit combination lock, cabin Baggage customizations, Velcro partition Pad, Key lock, Quick-hook, Push dismission wheel handle, bakshish and side handle. Styling is superb, comparable to h igh-end international standards. The huge premium charged for the high life aspects indicate Perceived Value Pricing.\n\nIt should be noted that no other player has a comparable offering in this segment. Samsonite has targeted a niche market through this and also highlights Line Featuring by Samsonite.\n\n· Crusair: Priced at Rs. 4750-6450 for Large and Rs. 3850 for Medium, this Super-Premium offering targets Marriage and Air Travel with family needs of affluent Indian customers. Additional features include Divider Pad, Folding Frame, Top and side handles and 2 Hangers.\n\n famous point is that Samsonite entered the Indian market and offered this product at only the same price range as VIPs Premium products Odyssey GLX and MTX. Hence, it can be deduced that Going-Rate Pricing has been applied.\n\n· F lightheaded: Unique offer of hard luggage, up set, lightweight and polypropylene-embedded, which are typically soft luggage features. several(prenominal) models are available like T omcat, Skyhawk and Lancer for varying styles. Priced at Rs. 3450-3950, it also provides additional features like Central Combination Lock, Side pockets and abstract Packing Kit.\n\nThis product is quite an experimentative offering by Samsonite. It employs Value Pricing as the knickknack of features and the comparatively lower pricing indicate. Priced at the mid-Premium range, it is obviously meant to lot the gap between VIP GLX, MTX and Elanza. Moreover, the uniqueness of the product is think to attract customer management and hence promote both cross-buying(from VIPs VTX and MTX) as well as upward movement (from Elanza and Neon). Given the features, F unclouded is capable of luring customers down from Odyssey GLX et al, as the benefits are more at lesser price. Thus, the More for Less aspect of Value Pricing is covered.\n\nNoteworthy is the absence seizure of a commonplace product from Samsonite in this segment. (Crusair is priced higher and localize is for Small size) Hence, FLite is a penetration product to wean away customers from VIP in this segment.\n\n· XYLEM Timmon: Ultra-premium product offered at Rs. 23,000 for very high-ranking business executives and industrialists.\n\n· center on DLX (Rs. 3290-3680) and focusing (Rs. 2525-3035): These are the Small products meant for short official travel, daily use as attaches and salesmans kits. The price range is targeted at executives, rich businessmen. twain products are Premium offerings with additional features like 3-digit combination locks, right side-up, etc.\n\n· Focus Coordinator: Priced at Rs. 1820-1970, this is in the same segment as VIP Odyssey BL/BM.\n\nFocus and Focus DLX indicate a conscious attempt to capture the higher end of Premium small products. They are priced just above VIPs Odyssey BL/BM, which hitherto was the only premium attaché available. Perceived Value Pricing seems the dodge employed. With Focus Coordinator, the upper middle-class office-goer is offered a choice to cr oss-buy from VIP Odyssey. Thus, Samsonite has effectively addressed the Premium Small range with the two-pronged strategy and also Xylem Timmon is a showpiece case for purposes of Line Featuring.\n\n· Xcess: Large (Rs. 3375-3975) and Medium (Rs. 2450) are the Premium variants offered by Samsonite under the American Tourister brand, for meeting usage occasions like pairing, air/ polish travel with family (Large) and official travel (Medium).\n\n· Promo, Carat: The Large variants of both of these falls in Premium segment (Rs. 1800-2150). They are positioned towards marriage, link job/college and other knowledge domain travel needs of a middle-class family.\n\nThe products offered by American Tourister in the Premium segment overlap the range of VIP VTX, Elanza and Neon. However, Samsonite brand has no offering in this bracket. Evidently, the two brands Samsonite and American Torister complement each other in the Premium segment American Tourister targeting the lower end and Sams onite taking up the Super-Premium. The pricing of American Tourister is meant to compete with VIPs products in the lower end of Premium segment and hence, Going Rate Pricing is employed.\n\n· Promo: This product is priced between Rs 1145 1495.\n\nThis is the only product competing directly with VIP in the popular segment in the hard luggage market. Aimed at middle class aspirants and climbers, it uses the brand and value equity to good affect by pushing a well know product at competitive prices without diluting the Samsonite image of high price-high quality. Based on VIPs prices, Promo encompasses the entire popular market. Samsonite aims at offering a single product without differentiation. Price is mainly affected by volume.\n\n· Voyager/Voyager Plus: This brand is priced between Rs. 1345-1525. \n\n Voyager is priced to compete directly with VIP Odyssey range. Middle class income groups using the Voyager increase its value equity. Samsonite is hoping for future customer migrati on to its higher end models in the future.\n\n· Globus EL (Rs. 3760), SM, MD, LG (Rs. 2050-3220): These offer good quality with additional side locks for EL and combination locks for all the sizes. These are ideal for meeting the air/land travel needs of case-by-case/family and also a good buy on marriage occasions.\n\n· Series, Icon and Savoy: These Large products swamp the range of Rs. 1745-2400. They have comparable quality offerings.\n\n· Ultima: This is a Medium product, priced at Rs. 1635-1995 and is a premium offering for short family travel and official tours.\n\nAristocrat seems to dwell on the lower end of the Premium segment and has a large no. of products. All provide good value for money. Going-Rate Pricing is the strategy followed by Aristocrat where it aims at being within the market leader VIPs range of prices. No significant attempt at amplification is noted.\n\n· Astra: The highest offering from Safari, priced at Rs. 2405-2480 is a Large product for upper mid dle-class.\n\n· Corsa SE 75, Galaxy AC 60, 80 and Optima SE 75, 85 WH: Slew of Large Premium offerings swamping the Rs. 1705-2275 range. Marriage occasions and family needs are focused upon.\n\nSafari bases its prices on the market leader, VIP. institutional selling allows it a some higher price, though its affect on the premium market is negligible as it is known basically in the popular segment. \n\nSafari offers a overplus of products within the popular segment, as it constitutes its greatest market, and it can compete according to its greatest strengths. direct on the strategy of perceived value pricing, it makes use of commit selling and government markets to make up its margins. Its prices are slightly higher than the market leader, Safari.\n\n· Safari Power /Ascent: The Safari Power and Ascent range was launched to compete with the VIP Alfa range. The price range starts from Rs. 295 915. Safari has also employed a pricing strategy similar to VIP i.e., penetrating the lo wer income group market to increase market share. Price adaptation strategy includes Psychological pricing.\n\nSafari is mainly competing with VIP and the entire unorganized market. Major expansion has not been undertaken because of consumer perception that Safari falls mainly in the popular segment price range.\n\n4. Pricing Strategies practiced and their impact:\n\n subject: VIP, Date, Purpose, Effect.\n\n· Future trends (shift from hard luggage, etc.)\n\n· Usage pattern Air, Rail Travel, etc. School/Office\n\n5.3 alive Strategies in Soft Luggage\n\nBrandwise listing and relative success/failure.\n\nUnderstanding reasons for practiced strategies How flourishing?\n\n5.5 Gaps unaddressed by active players\n\nIdentify gaps. Why unaddressed? Downsides, if any.\n\n5.6 Considerations for new entrant to soft luggage sector\n\n· desegregation of hard/soft sectors.\n\n· requirement estimation (on the basis of travel patterns, etc.)\n\n· Price Sensitivity (Backup with plate In come data)\n\n· The 3 types of customer equity how far are each satisfied?\n\n· On the basis of the above, frame pricing objectives.\n\n7.1 direct considerations in Moulded Luggage sector\n\nGist of points 2 to 4. lick in current market data in terms of size, trends, demographics, etc. (ICRA)\n\n7.2 Primary considerations in Soft Luggage sector\n\n Arrive at strategies depending on the above matching explain downsides and risks associated.\n\nPossibly come up with a brand proposition, its likely positioning, advertising, USP, distribution, all aspects to illustrate the practicability of our recommendation.\n\n· Conclude with estimate of size/share/profit/other benefits to accrue by applying recommended strategies and justify. lecture OF THE FUTURE.. harangue Blah. QUANTIFY THE GAINS.\n\n· Display of how the 3 types of Customer Equity are satisfied/created and how far?\n\n· adjustment strategies Discounting, Psychological, Promotion, Marriage Season, etc.\n\n· possible Competitors reactions and how to deal off preferably in a tabular form very very objective and concise.\n\n· Definition of Luggage and scope of our study\nIf you want to get a full essay, order it on our website:

Buy Essay NOW and get 15% DISCOUNT for first order. Only Best Essay Writers and excellent support 24/7!