There was a clear need to make the brand look young and with the times

VIP Industries – Positioning Itself as a Lifestyle Brand

There was a clear need to make the brand look young and with the times

The caselet gives details about the VIP’s marketing communication strategy aimed at positioning itself as a lifestyle brand. The caselet presents the planning process that VIP went through before developing the marketing communication campaign aimed at repositioning VIP as a fresh, young, and vibrant brand. The state of luggage industry in India is also outlined. 

Issues:

  » Revitalizing a brand
» Importance of market research in advertising planning
» Consumer demographics in India
» Identify consumer perceptions through focus group studies

Introduction

VIP Industries Ltd. (VIP), part of the Dilip Piramal Group, is the leading luggage maker in India, with a nearly 50% market share in the organized segment. The company manufactures a range of luggage that includes strolleys, suitcases, executive briefcases, backpacks, and school bags. It is also the second largest luggage manufacturer in the world.                                          

Besides, VIP is present in the plastic molded furniture market with its ‘Moderna’ range of branded furniture. In the financial year 2003-04, it posted revenues of Rs 2.75 bn with a net profit of Rs 66.2 mn. The luggage market is pegged at Rs 15 bn (2003 estimates), of which the organized market comprises Rs 6 bn. However, the market has shown signs of stagnating for the past few years. The growth rates during 2001 and 2002 were a meager 3-4%, with the economy segment (priced below Rs 800 and occupying a major share of the market) actually showing negative growth and the mid-segment (priced between Rs 800 and Rs 2000) remaining stagnant. 

Questions for Discussion:

  1. “There was a clear need to make the brand look young and with the times. The underlying objective of the new campaign is that we want to own travel.” Discuss the advertising planning process adopted by VIP, right from developing the advertising objective to launching the new ad campaign. 

  2. VIP launched a television campaign in 2003 after a gap of nearly four years with a major shift in its marketing communication strategy. It decided to change its positioning to a lifestyle brand and target a younger customer segment. Comment on the reasons for VIP changing its marketing communication strategy.

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Dr.ARAVIND BANAKAR 

aravind.banakar@gmail.com

http://www.mbacasestudyanswers.com

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