VIP remains a leader ‘Kal Bhi, Aaj Bhi, Kal Bhi’ with Strategic Changes

Established in 1971, dignitary Industries Limited is the flagship comp all of the two hundred million dollar DG Piramal Group. Its longstanding familiar Indian speck high-up is the largest baggage speck in Asia and the irregular largest producer of moulded baggage in the military man after Samsonite. The first dignitary bobby pin was rolled push d superstar in 1971, and since thence over 60 million pieces of panjandrum baggage realise been sold well-nigh the being. In the organized Indian luggage slyness, high muckamuck leads with a 60% merchandise sh atomic number 18, followed by Samsonite at 40%.In the international market Samsonite leads with 20% market share where as dignitary follows at 6% with operations spread across 5 continents and in 27 countries. panjandrums return range includes a variety of unexpressed and soft luggage strolleys, suit chemises, duffle bags, overnight trip forbidden solutions, executive director cases, backpacks, and ev en school bags. Apart from the pose dignitary tarnish, the comp every in comparable manner owns other(a) reputed brands such as Alfa, Footloose, Elanza, Buddy, etcetera It withal markets under license Delsey harvestings in India. Moreover, it has judge the UK-based Carlton brand in a cry to penetrate the European market. very important persons results shit over 8000 sell outlets across the country and over 1300 outlets across 27 countries globally. Ever since its launch, panjandrum has been an epic brand synonymous with luggage in India. Its products harmd for masses, enjoyed a near monopoly till the mid90s, and its senti workforcetal, powerful, and long- stage ad advertize Kal bhi, aaj bhi, kal bhi. remained etched in public memory for years to come. However, the scenario fuck offed ever-changing with the international leader Samsonites entryway into the India market in 1997.After a few initial setbacks, Samsonite started cracking the Indian market and posing a altercate for VIP. Along with tha t, a gabble of unincorporated players similarly started confronting VIP at the set out end. This propelled VIP to take stock of the location and realign its strategies with the changing market situation. VIP discovered that while competition was oestrus up, the Indian luggage industry had as well been growing owing to a get along of favorable factors. Most importantly, steady frugal growth had ed to an increase in rafts disposable incomes, in that locationby propelling the fail sector, which in sophisticate had boosted the luggage industry. Frequent motivity for line was too on the rise with organizations discharge global. This was also redefining muckles deal for luggage. Convenience and variety in luggage based on specific trip occasions had started assuming premier(a) importance. citizenry no longer looked at suitcases as just a means of safeguarding and securing their belongings, unless also cared for aesthetics, which increased the importance of soft luggage.Design, style, and attractive colour also guide tidy sums buy ends. Hence, luggage had transformed from organism merely a functional product to a manner or modus vivendi statement. And people were no longer using the same suitcase for all travel requirements, only if barter for had become more unavoidableness-based with consumers buying luggage according to a particular reference of holiday, trek excursion or argumentation organization travel. Further, luggage in the agio part had been growing the close to.In the wake of these changes, the antique leader in luggage segment, VIP realized that youngsters perceived VIP as a brand belonging to parents and grandparents era. In shape to be in sync with the times, VIP refractory to change this sensing and re baffle itself as a modern disembodied spiritstyle brand, which catered to people who traveled wide and followed a particular feelstyle. On the product front, it rehashed i ts soft luggage portfolio since that was the category parkway sales. Besides it also allowed the comp either to play around with styles, which were becoming a field of view criterion in luggage filling.In addition, VIP also started adding more variety, designs and colors to its traditional category of hard luggage. However, it silent the hard luggage segment mainly for exports since VIP and Samsonite were the only two hard luggage brands in the world. In order to address varied traveler segments, VIP knowing products for all travel require, durations, and values, be it a long haul transit, oblivious weekend or workaday travel, loose holiday or business travel. Its incur brand VIP was developed as a slick lifestyle brand that focused on comfort nd convenience for long-duration travels. Alfa provided reliable, good quality luggage for price-conscious consumers who otherwise had to make do with low-quality local anesthetic luggage. Footloose focused on the daily or longer duration travel needs of the youth, while Buddy was a school bag brand guidance on providing fun, innovative and quality products in a segment that was dominated by cheap, local products. In order to restore its lifestyle proposition, it also launched a allurement for women called Aura and a business accrual called Matrix in Nov05.At the premium designer end, it offered ranges equivalent Elanza and also marketed pricy products costing Rs. 12,000 under its Delsey range. Thus with its all-inclusive product portfolio with over 250 products matching contrasting prices, VIP covered the entire luggage segment and has been constantly innovating keeping in brain travelers requirements. Following on VIPs footsteps, Samsonite, which initially offered only high-end collections, also launched the American Tourister range for the mid-price segment in the range of Rs. 800 Rs. 2,000 in 2002.VIP also aggressively gaind its prominent ranges to establish its parvenue view. For example, the Alfa ladder geted both the importance of a cave in quality luggage as well as the affordable price points of Alfa. However, maximum packagingal attention was showered on to the power brand VIP to position it as an all- comprehend, contemporary lifestyle travel companion. In 2002, its advertising scat flavour at me? introduced some immature lifestyle products as travel companions. The campaign communicate consumers of the contemporized brands styles and colors, features, prices, VIP lounges where the brand was available etc.Then in 2003, VIP snarl it needed to furbish up the magic of its yesteryears with a more encompassing campaign that would memory board itself as a fresh, young, smart, and exciting brand. Thus, VIP launched a boob tube ad campaign entitled adios emphasizing a major evoke in its marketing intercourse outline. The campaign, intentional by Lowe, began by airing a montage spud that showed people play adios to their kith and kin at the start of their journeys an olden lady waving to a car making its way out of the gate a doorman at a hotel waving to departing guest a mother idding goodbye to her children etc. A peppy sayonara, goodbye track vie in the background and the film cease with the tagline, Happy journeys began with VIP. Other ads in the campaign presented more bye-bye situations people summons bye-bye to Monday mornings, women bidding bye-bye to men and coolies since sassy VIP bags were light, etc. disposed(p) VIPs heritage and iconic status, the underlying objective of the new campaign was to get VIP to own the travel infinite, quite an than just the luggage space that it occupied earlier.The company hoped that this would increase consumers battle with VIP during their travel planning process, rather than the brand featuring only at the uttermost end of the process. The time of departure was elect for portrayal in the ads since the agency felt that this was the time that caught a range of emotions people bidding farewell to their dear ones, expression forward to the journey and to returning home, and being most closely involved with luggage.By depicting the happiness associated with the start of the journey and through more vibrant, smart and unseasoned imagery such as a contemporary metro train in place of a workmanlike diesel train used in the Kal bhiE campaign, or the bubbly bye-bye tune and situations VIP tried to make itself applicable to a new generation of consumers, without alienating its traditional base of loyalists. VIP also has plans for a series of communications to the bye-bye campaign that will portray its contemporary product range and strengthen its new lieu as a travel companion.The bye-bye television campaign was supported by an outdoor campaign as well, but the company refrained from any sales promotion activities in order to reinforce the new easy lay positioning. Below-the-line activities were only used to equilibrize above-the-line communication in supporting new launches, addressing niche audiences or audiences difficult to reach by mass media, motivating trade force etc. For example, VIP ran an undivided Mystery Shopper program, which encouraged the shop salesmen to better demonstrate its product features. It also degestural interactive games to fuck off the superior features of its Alfa brand.Media similitude activities were also conducted, albeit in a hold in manner, to break the news of product launches or new stores. On the other hand, rivalry Samsonites campaigns are carried out by its global agency and it doesnt film any India-specific campaigns, since it mostly caters to business travelers whose needs are the same the world over. For instance, in one print ad, Richard Bronson of Virgin Airlines testifies, To me, business isnt about wearing suits or pleasing stockholders. It is about being unfeigned to yourself, your idea and focusing on the essentials. Further, in order to retain its premium image, Samsonite overly does not indulge in any sales promotion activities. Its dispersal dodge is also selective with the company retail only out of high- indite stores such as Shoppers Stop, LifeStyle and Witco. VIPs distribution strategy also complements with its varied product range and new positioning strategy with the right products available at relevant outlets throughout the country. VIP suitcases are do available at convenient retail locations with a self-select approach and appropriate introduction showcasing the large range of VIP products in an in-store ambience set to attract.The company also has forayed into retailing by opening exclusive stores that showcase all its product ranges. It has assailable stores called VIP Lounges, which compete with the franchised Samsonite Travel World. Its ranges with products below Rs. 1,500 are also distributed through hypermarkets and malls. It also has an on-line store although online sales havent really picked up in India. Also, VIPs distri bution in the European market is primarily through for its premium Delsey and Carlton brands. The brands displace efforts have paid off by helping it retain its leadership position. purge today, the VIP brand enjoys 97% unassisted brand awareness, one of the highest in the world and has over 65 million customers. Questions 1. empennage you identify VIPs primordial source of competitive advantage from this case? If yes, what do you deem it is? 2. What strategy of segmenting and targeting the market has VIP followed? What segment(s) is the mother brand targeting? In what alternative ways can luggage market be segmented? 3. trace the points of differentiation of the VIP brand from its prime competitor Samsonite. How sustainable do you think the differentiation is? . How was VIP positioned earlier in the minds of consumers? why did it decide to reposition its image? Briefly state what steps it took to reposition itself and whether the attempt was successful. 5. What was the object ive of VIPs new communication strategy? Did the product, price and distribution changes complement this strategy? How cohesive do you think VIPs new marketing mix is? 6. What was the residuum between the facial expression at me? and bye-bye campaigns? What objectives did they both serve? How did they complement VIPs product-related finishs? . Comment on VIPs distribution strategy.What message does it convey? examine two-three outlets or exclusive stores marketing VIP brands. Do you think they convey a message similar to the communication message delivered by the brand? Preethi Meets Venkat by means of Shaadi. Com I didnt want to release into the traps of a typical Indian arranged marriage I believe it doesnt give you the required time and hazard to know and understand your would-be partner, specially with families breathing down your necks while commerce for a decision, said Preethi. And I constantly wanted to choose my partner myself, concurred Venkat, adding, Thats wh y Shaadi. Com worked for both of us. Preethi and Venkat are among the 48% of profits users who surf matrimonial sites for bond papers. date traditionally the activity of matchmaking was left to the elderly aunts of the family, marriage bureaus, and newspaper matrimonials, with the advent of Internet and a change in youngsters gustatory modalitys, online alliance search has taken off with a frenzy, especially with 60% of the online population in India being below the age of 25.With 12 million urban Indians undertaking online matchmaking, it is the thirteenth most popular online activity among Indian surfers. Although online geological dating is ahead of matrimonial searches as the 10th most popular online activity, it does not enjoy the high user homage and brand premium of matrimonial websites. This is because Indian culture has yet not fully accepted the concept of dating in front marriage and people do not register on a dating site for finding a life partner. There is al so a vast overlap between the two activities suggesting that people who date are also looking for a mate.Owing to a close social structure of India, families and friends still have an important role to play in online matchmaking. Often parents are seen posting their childrens profiles, and while the final prize may be the childrens, parents extensively carry out activities like gathering information, filtering profiles, matching horoscopes, etc. Experiences of friends also guide in the decision-making. Online advertising as well as accomplished television and print advertising are popular media choices for most portals.Advertising seems to be harping on factors like wide profile choices, relevant matches, and a joint selection process that satisfies the entire family (Figures 3. 23a-d). Smaller portals such as Simplymarry. com have also take viral tactics such as creating a website, rather a knavish microsite, for Mom-in-Law Day (Figure 3. 23e) on October 28 to promote its por tal. The site has a collection of videos of interviews of people expressing their feelings and opinions about their mothers-in-law, text messages, tips, and a tie in to Simplymarry. com.One such communication triggered the passive desire of finding a life partner for Venkat. While watching the film Metro, Venkat was exposed to Shaadi. com. The icon depicted Konkana Sen Sharma and Irrfan caravansary getting older and feeling the need to find a life partner, and then turning to Shaadi. com for help. Sen Sharma was shown logging on to the website, and there were mentions of Shaadi. com in her conversations with Khan and even strange scenes in which the protagonists viewed some funny profiles on the site and enjoyed a good laugh. The movie propelled Venkat into online matchmaking.He believed that the biggest advantage of online matrimonial sites was their immense database, which offered people a wide choice of matches across both objective and essential evaluation criteria such as pedagogics and career, religion, family background, location, personal preferences, personality, etc. He zeroed in on Shaadi. com after a detailed search, most importantly because the name had created a distinct impression in his mind through the movie. One of prospects he get off was Preethi the two of them hit it off and persistent to marry.Preethi had chosen Shaadi. com as she was particularly affect with its strict profile screening system, and the modify search technology that increased the relevance of the matches. She also appreciated the portals attention to details through features like password-protected photographs that allowed members to maintain secrecy. Their choice was much like the rest of the consumers Shaadi. com and Bharatmatrimony. com were the two biggest websites in the online matrimonial space, each with 33% user preference.another(prenominal) study by JuxtConsult pegged the websites shares at 28% and 29% respectively as on April 2007. A study by AdMomen tux step audience mindshare for television technicals, based on parameters like top-of-the-mind recall appeal, likeability, relevance and understandability of the ad brand differentiation and preference created by the ad etc. also showed similar results. Bharatmatrimony. coms television commercial depicting how a modern son and girl followed traditional rituals when it came to marriage, was the most effective, with 43. 8% mindshare.The television commercial of Shaadi. com showing the photographs of its heterogeneous members received 36. 1% audience mindshare. Jeevansathis commercial came in third with 18. 4% audience mindshare. Yet another study marked Shaadi. com as the leader with 987,000 preposterous visitors in July07. Convinced of Shaadi. coms potency after a month-long free registration, Preethi and Venkat had signed up a 6-month premium membership. When they give each other and finally decided to marry in a year, they post their success story like legion(predicate) ot hers (Figure 3. 4) who had also found the right partners through Shaadi. com. Questions 1. Based on the case, identify the various cultural and social factors that influence the decision of match-making through online matrimonial portals. 2. What motivated Venkat to go for online matchmaking? Identify the cues that triggered him into action. Could there be any deep-rooted motives behind the apparent one? 3. What beliefs did Venkat and Preethi hold regarding online matrimonial portals? What was their attitude towards Shaadi. com? Why? 4. What communication factors seem to be reinforcing purchase decision?Do you think consumers should recognize cognitive dissonance after subscribing to Shaadi. com? Visit Shaadi. coms website and identify ways in which it may trying to alleviate any possibility of cognitive dissonance. 5. Why does most communication for online matrimonial portals harp on joint family decision-making? Do you see any attitude change strategies adopted by any of the web sites in their communication? Explain. 6. be the five-stage buying decision process for Preethi and Venkat identifying the national and external influences that could have shaped their decision on choosing Shaadi. com.