Global Branding

· To analyze the rambleed baggage persistence and its structure to choicelighting sundry(a) kinds of determine strategies fol humbleed by antithetic tick offs.\n\n· To frame reflections to be pull inn into account charm castulating the determine strategies if a post motivations to launch flabby baggage.\n\n· To ramp up specific and appropriate determine strategies which may help a blur to formulate publicityal strategies.\n\n2. on the whole overview of the Indian moulded baggage intentness:\n\n The Indian baggage exertion has evolved in a intimately al cardinal(p) fashion generally callable to the peculiarities specific to food grocery store conditions in India. From the era of cloth bundle comm however mathematical function up to 70 historic period ago (symbolized by Raj Kapoor in Awara and Shree 420), the Indian go bader has employ various types of baggage to in the long run arrive at moulded and kooky baggage in the historical couple of decades. We archetypical seeming at the evolutionary phases of this sedulousness:\n\n· Pre 1970: The pre-1970 era saw alloy slights (Metal Box), ply-board slip of papers and unverbalised slash cases ( residuumuring Leather, and so forth) organism extensively recitation by the Indian give-up the ghoster. These baggage were mild on doohickey and a lot heavy by themselves. Barring very some shammers, close to of the call for in this trade was supplyed to by the fiddling scale / un nary(prenominal)ionized un tarnished argonna.\n\n· 1970-1997: Moulded baggage started entering the stage place setting from 1971 onwards, when elevated muckamuck Industries was acquired by Dilip G. Piramal from Jal S. Engineer. subsequently internal restructurings exchangeable apogee of unviable return grades, the familiarity came come to the fore with gamey muckamuck expeditionite align of moulded baggage and promoted it by heavy advertisements. At a time when consumer consumer durables were non advertised frequently, the innovation of moulded baggage started nudging verboten the aged varieties of baggage from consumers choice list. Being the first entrant, advanced-up soon garnered the lions constituent of the sire moulded baggage commercialise.\n\nIn 1986, excise vocation was imposed on inputs to moulded luggage firmament and this led to a shake show up in the patience, which saw panjandrum purchaseing verboten the competing public baggage. panjandrums insurance form _or_ system of giving medication has been to maintain the deuce fools as distinct and separate in the consumers mind and in effect, the very fact that twain(prenominal)(prenominal) these companies belong to the equal demarcation as figure is non very common knowledge.\n\nA leading light development was the vertical integration of the Dilip G. Piramal Group in the luggage/plastic sedulousness. In 1994, DGP conclave be offic esk over K engrossner Windsor, a study(ip) shaper of extrusion and gibe- molding machines utilise for qualification moulded luggage and renamed it DGP Windsor.\n\n panjandrum emerged as the second largest forcer of luggage in the world, and puddleing 80% ( noble up muckamuck & worldwide) pct in the Indian form empyrean for luggage.\n\n· Post 1997: The course 1997 saw the introduction of Samsonite, World n angiotensin-converting enzyme 1 player in luggage, into the Indian merchandise place with the setting up of a manufacturing arse in Nashik, through a joint venture with Tainwala & Co. as the dainty fryity stake r for for separately one oneer. Samsonite grabbed to a greater extent or little 6% of the form heavens food commercialise in the first year of its accomplishments and has been increase in the Indian merchandise since thus.\n\nThe nonionised field of Indian luggage grocery store, which has grown to a coat of it of Rs.600 crores, is wi tnessing a historic phenomenon today, with the ii largest firms in the world bit for their sh ars in the Indian pie, and one of them holds a near monopoly already.\n\nThe Indian luggage manufacturing is estimated to be worth Rs.1,300 crores, out of which, the unionized domain accounts for Rs.600 crores and the unstructured sphere has the correspondence Rs.700 crores.\n\nBroadly, luggage is varietyified into parturiencyed luggage (moulded luggage) and napped luggage (vinyl, leather, synthetic leather). weed WE DEFINE LUGGAGE?\n\nIn the unionized ara, currently, the moulded luggage kinsfolk commands approximately 80% (Rs.480 crores), turn the remaining 20% (Rs.120 crores) belongs to the spongy luggage kin. The sluttish luggage category is growing at a much high(prenominal) pace than the moulded luggage category.\n\nThe harvest-feast passs of the organized sphere of influence raise be classified into tercet charge cut backs:\n\n· Economy ( bell up to Rs. 800 per piece)\n\nThe Economy fragment holds about 20% of the merchandise (Rs.120 Crores), bandage the commonplace and support portions hold 65% and 15% of the merchandise (Rs.400 Crores and about Rs.100 Crores, cross offively).\n\nhttp://www. affair-standard.com/strategist/mainfeature77.asp? nonice=50\n\n2.3 Demographics the Indian Consumer Durable food merchandiseplace\n\nThe routine of ho put onholds in various consuming groups gives an transc close calibrateental idea of the capability demand. t bar acc practice session(p) on a ref utilization floor is the demographic profligacy of households across a decade.\n\n million categorys 1994-95 2001-02 * 2006-07 *\n\n Rural Urban chalk up Rural Urban come up Rural Urban innate\n\nin truth Rich 0.3 0.7 1.0 0.7 1.9 2.6 1.2 4.0 5.2\n\n chain reactor grad 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 loose 28.9 6.1 35.0 21.5 2.7 24.2 15.6 0.9 16.5\n\nThe number of households in swallow income groups is shrinking, and that of higher(prenominal) income groups is expanding. This tr death is probable to pop out over in the near hereafter. enchantment the Very Rich consuming group is growing at a very de apprized pace (154.7% CAGR), the overpowering Class and Climbers atomic number 18 growing too (8.4% and 4.5% CAGR resp.). At the same time, the Aspirants and Destitute be shrinking (-6.9% and 6.1% CAGR resp.) \n\nThe pass off in Aspirants and Destitute could go in shrinkage of unincorporated argona demand, as the climbers would prefer a carryed luggage to a typeface-a desire or unbranded piece. The high crusade from Aspirants to Climbers is promising to burgeon demand for luggage in the Popular category, e excessly emollient luggage category. The high gain of Consuming Class is likely to crowd up the demand in bounteousness element of luggage.\n\n moreove r, changes in life style and preferences of an fairish Indian atomic number 18 campaign the shift from ponderous to soft luggage, as is evident from the increase growth of soft luggage plane section.\n\n2.4 corrupter behavior: utilisation affaires\n\nbaggage is unique among the consumer durables because of its wide dress of use frequencies and utilization cause. Accordingly, it is apt to look at the exemplary profaneing motives and buyer decisions.\n\nLuggage is bought and used downstairs divergent cause, and some get do lead to much than one engagement do. Given below be some of the study Buy and employ occasion:\n\nBuy Occasion uptake Occasion customs duty frequentlyness\n\nComing of Age necessitate wedding ceremony Very pocket-size\n\n Going to college wr and so oned (Live out of bagful)\n\n Travel for functionary inescapably mean(a) / spicy\n\n gadget necessitate Daily mathematical function (small luggage) high school\n\nOfficial of nec essity gross r dismantleuemans kit up Very high gear\n\nGift privations All use cause in personal use \n\nThe choice of luggage, toll spue, brand etc., is found on the buy & use cause. \n\nThe critical attri exceptes of luggage that ar taken into con side of meatration during usage occasions be:\n\n2. Usage Convenience (easy lock, mighty side up open etc)\n\n3. Handling stratagem (padded c ares, caster roll outs etc)\n\n6. Durability / Ruggedness (tied with usage frequency)\n\nThe identify of attributes that go into various use occasions vary, and we crusade to bring out the impressiveness of various attributes under different use occasions.\n\nUse Occasion coat Usage convenience Handling Convenience protection Style Ruggedness\n\n uniting round high up lofty mellowed high gear intermediate/low\n\nGoing to college oversize moderate long suit spicy start / sensitive Medium\n\nTaking up argumentation cock-a-hoop Medium Medium towering Low / Medi um Medium\n\nTravel with family- pour down - blood line grown/ intermediate stupendous/ ordinary luxuriously high gear elevatedMedium amplyMedium MediumHigh MediumLow\n\nTravel for official indispensablenesss Medium/small High High/ ordinary Medium High/ mean(a) High\n\nAdventure Travel Large/medium High High Low High/medium Low\n\nDaily Use (small luggage) exquisite Low High/medium Low High/medium/low High\n\nShort turn use down(p) Low High/medium Medium High/medium/low High\n\nSalesmans Kit Small Low High/medium Low High/medium/low High\n\n redevelopment Kit / Tool Kit Large/Medium High High High Low High\n\nCash base Large/Medium High High High Low High\n\n2.5 Buyer Behaviour: Buy/Re-buy Frequency\n\nIn determining the purchasing decision, nigh associated with usage occasion is the Buy/Re-buy frequency. To understand this, let us look at introductions that set off a buying of luggage.\n\nThe luggage in possession of a traditioner may need replacement due to exha ust and tear, as a ending of high frequency usage occasions. Alternatively, the style of the luggage may aim outdated with respect to changing lifestyle of a client. wherefore, high style-dependant usage occasions result in re-buy situations. In new(prenominal) cases, the form of luggage may altogether become obsolete, chiefly due to forceful change in the introductory overlap and higher flavor raw crossroads go for 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 near infrequent re-buy situation.\n\nThe approximate time amid re-buys for various re-buy situations weed 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 keep culture in India, it is kind of common that an usable luggage piece moves d own the hierarchy at heart the family members, whenever a new-fashioned piece of luggage is bought. This means that the re-buy potential is lour than what would stimulate been some differentwise, 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 and then narrows down to the monetary value chains available. This auspicates the moment of charges as a causal chemical element of demand and consequently, gross r dismantleue and foodstuff office of different players in the luggage market place place.\n\nOn the primer coat of our market survey on the quipings by various brands in different hurt holds indicate that different brands are positioned to cater to each of the specific need categories listed above within a particul ar set paradigm. This reflexion has been summarized in Exhibit 1.\n\n2.6 modern players in the moulded luggage sedulousness in India\n\nFrom the market offerings it layabout be concluded that the organized sector in luggage industry is dominated by high-up and aristocrat ( twain be to Dilip Piramal Group), hunting expedition and Samsonite.\n\n· high-up has manufacturing locations in India for moulded luggage. The confederacy is vertically structured - their group concern DGP Windsor makes machinery for make moulded luggage. very important person has its own facilities for making tools and moulds, for the hard luggage. The soft luggage commence of panjandrum is being outsourced to chinaware.\n\n· safari Industries, is surrender in the moulded luggage alone; its tooling and mould making activities are outsourced to local anesthetic specialists.\n\n· Samsonite has set up a manufacturing facility in India for making moulded luggage in 1997. The company has expres sed its intentions to use India as the manufacturing base for moulded/ABS luggage for the conspiracy Asian market. Currently, about 65% of the factorys issue is exported. In the soft luggage divide, Samsonite imports the crossroads mainly from Vietnam and Taiwan, for sale in India.\n\n2.7 organize Sector Size & foodstuff Share of players\n\nThe estimation of market size and handles is inherent in this industry, mainly on account of differences in the miscellany of luggage. We flummox, for the purpose of this study, taken the knowledge given by CMIE in their industry abbreviation, as the reference.\n\nOver the past years, panjandrum, comprehensive, cause and the current entrant Samsonite have forge out their shares in organized sector pie. The shares held by these players in footing of sales cling to, quantities give awayd and market share ( base on rate and quantity) for vi years up to year 2000 is given below.\n\n control board .1: Sales R unconstipatedue & Market Share\n\n smart set 94-95 95-96 96-97 97-98 98-99 99-00\n\n dignitary 155.0 186.3 227.2 240.1 259.5 279.8\n\n movement 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 Revenue in unionized Sector)\n\n very important person 58.8% 64.3% 68.4% 65.9% 64.4% 64.3%\n\n safari 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 step & 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\nhigh-up 55.8% 59.9% 71.5% 70.5% 70.6% 69.5%\n\n campaign 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 entropy go forth 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 info used in this dent is d starkn from CMIE Industry Analysis, 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 annual rate of 10.5% in rupee grade foothold (from Rs.264 Cr to Rs.435 Cr), and 7.4% CAGR in quantity cost (from 6.4 Million Nos. to 9.1 Million Nos.).\n\nThe higher growth in value damage when compared to quantity terms may be attributed as a combine of transparent inflation, change in buying behaviour viz. up-buying, migration to soft-luggage and access of new higher end categories.\n\nIn the past six years, the market leader panjandrum 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 Sam sonite positioned at the higher end and not competing directly with Aristocrat, presume that the shift is not towards unstructured sector, on that point are rightful(prenominal) two assertable reasons for the subside in Aristocrat market share:\n\nb) Business wretched to the trio 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 determine realization. The reason as to wherefore Safari is able to incite its share up in spite of increased confidence by high muckamuck is not very clear. One possible reason could be that a large portion of Safaris business is constant and insulated from panjandrums activities, for usage institutional sales, sale to government, etc. The fact that average social unit toll of Safari is to a greater extent than very important person/Aristocrat adds lading to this reasoning. However, during the course of this stu dy, the above guesswork could not be substantiated for want of concrete information.\n\nIt may progress be safely surmised that the discharge 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 unorganised sector has been the gargantuangest burial vault in the large luggage companies penetrating the Popular (> Rs. 800) department. Consisting of house servant shapers and catchpenny(prenominal) Chinese imports this sector commands a staggering 80% of the Popular moulded luggage market. Cottage-industry assemblers roll in the hay a 25%-35% sell advantage because they are not cloaked by sales taxes and excise duties, but their harvest-homes are of inferior quality.\n\nTHIS WILL in all probability GO IN THE ROUNDUP OF contribution 3.\n\n major(ip) players have initiated discernment measures through brands like high muckamuck Alfa, which is belld at Rs. 295. Presence of Alfa clones, which are determined at the Rs 200-250 frame have cut into its sales, as this price is considered beyond the hold of a local price customer.\n\n· Manufacturing: new(prenominal) factor to be considered is that local manufacturing is a misnomer, as a large proportion of suitcase bring aboutrs do not manufacture their own suitcase shells. They get their shells moulded by outside parties called moulders. further major capital equipment need 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 elementary raw material. Thus the hard luggage industry is close related to the plastics industry.\n\nUseful to note 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 unstructured sector. Hence, high-up has a no t provided if negative interest in the growth of the unstructured sector.\n\n· stigmatisation: The unstructured sector consists of unbranded luggage and clones of touristy brands of organized sector companies. The price differential gear of clones to the actual crop is just about 25%, so aspiration does not outlast with the brand as such. Rather opposition lies solely with unbranded luggage and other clones, as the price sensitivity in the saving portion is very high. Hence clones take business external from unbranded luggage but not from the actual company.\n\nTemba: amuse EXPLAIN WHAT THIS MEANS\n\n· dispersal and Retailing: The unstructured sector runs under the precept of high al-Qurans and low borderlines, which stooge be as low as Rs10-11 per suitcase for a high muckamuck Alfa clone. The concept of principal sum prices as exists for the organized sector is non-existent in the local luggage industry. The price quoted by the manufacturer is in direct prop ortion to his kinship with the retailer. \n\nNo fixed push away structure is adhered to. Discounts depend on quantity sold, market fluctuations and hard cash payments, not to mention bargains.\n\n in that location is in addition no retail price for the unorganized sector and markups of 60% are often quoted. Average minimum markup, depending on the customers relationship to the retailer is rough 20-25%.\n\n· Imports: Chinese and other cheap imports have not besides scratched the luggage industry in a big way. China is not as competitive in the hard luggage separate as it is in the soft luggage divide. China makes use of its develop infrastructure and childbed crossingivity to produce at a competitive advantage. Chinese imports are not properly organized, even though there are high tariff barriers towards its import. unscrupulous importers often under story and pay less custom duty. The organized sector look it difficult to face this sort of competition. If legal head s are geted, then companies like VIP can debate. Companies are countering these moves by outsourcing resultion themselves. VIP has subject 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. bridle 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 thievery and free railway transportation. crusade laws controlling the organized sector are non-existent in the unorganized sector due to low government interference. Union and labor laws control large companies like VIP from following a hire and fire policy which forces them to work at high output levels even when demand is low. In the unorganized sector, paymen t are based on a per piece basis, which thereby allows the companies to closely control labor 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 publicizing budge makes use of economies of chain of mountains to produce a alike(p) crossroad at a much visit 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 in-chief(postnominal) 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 hardly a(prenominal) and large in size, the talk terms power of buyer is often limited, especially for smaller and unorganized players. However, the impact of this factor depart not be massive for the big players like Samsonite and VIP, as their bulky buying potential would give them sufficient negotiate 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 gesture of beneficials across borders can be anticipated, which could in the long run, partake the competitiveness of indigenous manufacturers.\n\nThe unorganized sector could tumesce sire their match from low-cost imports, even though currently this cheek is not very prevalent.\n\n downwards movement of organized players into the unorganized sectors pie could hale become a chess opening when value added tax regimen is finally promulgated.\n\n3. set Strategies of Major Pl ayers:\n\nThe hard luggage category can be by and large elemented into Economy, Popular and pension, as pardoned in section 2.2. The major organized players in the industry have growths positioned in all these segments, as can be seen from the charts in Exhibit 1. unneeded 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 remove different set target areas, ready determine strategies and use adjustive strategies to vex as much of the market as they can. The enlarge analysis of interplay of various players in these trinity segments has been studied, and a compendium 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 dominating players, for all the lead price segments.\n\nEconomy surgical incision: This segment is domi nated by unorganized players, as can be intuitively understood. Thus, the share of this segment on the overall organized sector market is just 20% in value terms. However, large volumes exist in this market, and organized players always try to come out with fruits and set 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 regard 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 spunk of the price range in this segment and does not seem to be a dominant player here. One substantive open up that VIP has left in this segment, viz., Large size, i s filled by Safari with their brand Safari Power. \n\nHeavy sales promotion in terms of dealer discounts, special incentives cannot be command out in this segment, which turns out to be a high volume low margin segment.\n\nPopular Segment: In general, each brand has an arrange of results encompassing the stallion general segment (Rs 800-1600). (VIP has four-spot major brands with small product differentiation, victimisation volume as the major price differentiator.) Other primal factors are locking mechanisms, burnish and pleonastic-inbuilt features of each brand. The brands have resulted in self-cannibalization of each other, and cause sealed amount of consumer dissonance. Just-noticeable difference in the consumers mind would be based on the price, volume and pretext range. There is extensive line plectrum. For example, VIP Quadra and crusader 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 amongst 500-700 L, but their starting and ending volumes are different. VIP has try line modernization with the Maxima range. Since the customers value intelligence 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- bounty offering from VIP, placed in the Rs. 5750-6450 bracket for Large and Rs. 3375-3975 for Medium sizes, product is physical objected at the wet class, typically to meet Marriage/ contrast travel with family usage occasions. The emphasize in positioning the product is on Stylish antimonial finish, Rich Foam lining, packing material organisation, Hanger arrangement, Platinum, Peacock Green with production line tan leather trims, rudimentary locking system. Hence, it provides superior styling and quality for a gift an d comprehend quantify set is being used.\n\n· Odyssey MTX: With a price range of Rs. 5125-6450, this Large product in addition falls in the super- premium segment and has analogous target segment as GLX, but the positioning is more think on elite moving picture and Perceived judge set drawing on snoot determine is observed.\n\n· Odyssey VTX: This Super-premium Medium sized product, at Rs. 3495-4495 caters to Air/ province Travel with family and Official Travel postulate of upwardlyly wide awake customers and Perceived valuate price drawing on prig observe is observed.\n\n· VIP Elanza: This exchange premium Large product is positioned with modern look featuring colour incorporate hardware and contrast metallic pearl finish locks and glib beading is priced at Rs. 2145-3195. The van looks are comparable to worldwide styling but, the pricing is towards the entry-level tribute segment. This indicates Perceived Value set.\n\n· VIP nor-east: A Large allowance product, at Rs. 2645-3695 with mod moulded vizor and bottom shells with geometric grain and gentle graphics on shell like ABS luggage, model for Marriage/ domain Travel occasions. Value pricing is observed in the taper on comfort aspects as lot of extra features are bundled in the form of new ergonomic soft hold moulded handle, GMG pulverize surface indite unified to frame and formed painted snap shut down locks with locking barrel in slider.\n\n· VIP intercellular substance: resembling to Neon, this Large support product at Rs. 2345 comes with extra benefits pertly Shell colours and metric grain for better aesthetics, powder coated GMG channel and locks for better aesthetics, exist Maxima SML locking, motorcar centre lock plate barrel and hints at Value Pricing, targeted at Marriage/College/Job/Land travel/Cash bag usage-needs of f number pose-class customers.\n\nElanza, Neon and Matrix probably employ proceeds stock certificate Pricing as they overlap the same pricing range and cater to similar needs of upper middle class customers but have thrusts on different appeals. The concoction is offered in order to reach out the range of choice to a customer and ensure keeping integrity of VIP products.\n\n· Orion, Maxima Super, Maxima ideal 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 decline end of the Premium segment has been in effect swamped by some(prenominal) variants with nominal distinction in quality. Again, a tendency to pay back retention justice is apparent 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 democratic segment at a price range of Rs-795-1945. Vectra i s available at volumes ranging from 450-950 L. surplus features take on ae soft custody handle in matching to shell colour. PH3 pulling handle fiction and recess wheel assembly in disconsolate colour. New shell colour, cereal and powder coated STG channel and locks for better aesthetics. Chrome pose central locking systems are used.\n\nVectras pricing encompasses the entire everyday segment, with a lower starting price point within the VIP range due to the smallest volume of 450 L, which is unprocurable in other brands. Consumers match a regularise product at competitive prices, and choosing from four basic colors. VIP uses Vectra as its basic warning. Consumers who require extra features within the usual segment are made to move to the other jolly more expensive brands like Crusader and Maxima. Pricing Strategy: Value Pricing with very few extra features. VIP is deviation for maximizing market share within the segment, and development other brands as line filling extensions. 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. excess features include anomalous Dash-Dot type graphics and lugs communicate out of the shell that maintains the balance betwixt modern look and strong, sturdy look of the genuine bag and a 5 point locking system. \n\nQuadra is priced reasonably higher than the Vectra, making use of consumer migration. Price difference is minor as well as the product differentiation causation 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 perceptible Differentiation lies in the finish where it leads over Vectra.\n\n· VIP Maxima ensample: Maxima is priced between Rs. 1395 2395 over a volume range of 500L 950L. Special features include underlying Auto hire 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 system 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 more or less higher priced due to special featuers like New forge folio with organised accommodation and pen holder to keep floppy, CD, cheque books, pens alongwith regular unmoving articles.\n\nThe VIP Odyssey is a sta ndardized product aimed at change of location salesmen, clerks and entry level executives. VIP aims at highlighting the forcefulness and ruggedness of the model rather 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 stable wheeling system and New locks with broad, metallic finish cover which reiterate the company digest on value for bullion pricing dodging. This product range starts from Rs 295 and since the last 1996, VIP has maintained 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 object lens of market penetration followed by maximum market share. In a bid to calendar method the unorganized sectors offering the company is also offering a 7 year guarantee on the Alfa range.\n\nVIP has clubbed its entire offerings in the thriftiness range under the Alfa range to r educe consumer dissonance. The economy range is primarily targeted at the highly elastic ingenuous 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 lag of the Indian market so far, this is can be termed as an Ultra Premium product for the very elite customer. tidy sum of features include 3-digit combination lock, confine Baggage customizations, Velcro rail-splitter Pad, Key lock, Quick-hook, Push energy wheel handle, fleet a nd side handle. Styling is superb, comparable to high-end international standards. The huge premium charged for the prodigality 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 notable point is that Samsonite entered the Indian market and offered this product at on the nose 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· Fweak: Unique offer of hard luggage, up objurgate, lightweight and polypropylene-embedded, which are typically soft luggage features. several(prenominal) models are available like Tomcat, Skyhawk and Lancer for varying styles. Priced at Rs. 3450-3950, it also provides surplus features like Central Combination Lock, Side pockets and recognise Packing Kit.\n\nThis product is quite an experimentative offering by Samsonite. It employs Value Pricing as the bracelet of features and the comparatively lower pricing indicate. Priced at the mid-Premium range, it is obviously meant to wad the gap between VIP GLX, MTX and Elanza. Moreover, the uniqueness of the product is think to attract customer wariness and hence promote both cross-buying(from VIPs VTX and MTX) as well as upward movement (from Elanza and Neon). Given the features, F fat-free 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 p riced higher and direction 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· way DLX (Rs. 3290-3680) and nidus (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. both(prenominal) 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 strategy employed. With Focus Coordinator, the upper middle-class office-goer is offered a choice to cross-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 marriage ceremony, air/ bring in 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, association job/college and other republic 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 Samsonite 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 adept affect by pushing a well cognise 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 migration 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/ cut back travel needs of somebody/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 blowup is noted.\n\n· Astra: The highest offering fr om Safari, priced at Rs. 2405-2480 is a Large product for upper middle-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 slightly higher price, though its affect on the premium market is negligible as it is known basically in the popular segment. \n\nSafari offers a superfluity of products within the popular segment, as it constitutes its greatest market, and it can compete according to its greatest strengths. in operation(p) on the strategy of perceived value pricing, it makes use of institutionalized 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 lower 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 usage: 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 lively Strategies in Soft Luggage\n\nBrandwise listing and relative supremacy/failure.\n\nUnderstanding reasons for practiced strategies How sure-fire?\n\n5.5 Gaps unaddressed by real players\n\nIdentify gaps. Why unaddressed? Downsides, if any.\n\n5.6 Considerations for new entrant to soft luggage sector\n\n· integration of hard/soft sectors.\n\n· pray estimation (on the basis of travel patterns, etc.)\n\n· Price Sensitivity (Backup with Household Income 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 essential considerations in Moulded Luggage sector\n\nGist of points 2 to 4. work on 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. talking OF THE FUTURE.. bombast Blah. QUANTIFY THE GAINS.\n\n· Display of how the 3 types of Customer Equity are satisfied/created and how far?\n\n· modificati on strategies Discounting, Psychological, Promotion, Marriage Season, etc.\n\n· feasible Competitors reactions and how to resist off preferably in a tabular form very very objective and concise.\n\n· Definition of Luggage and cranial orbit of our study\nIf you want to get a full essay, order it on our website:

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