Skybags

A STUDY TO UNDERSTAND BRAND PERCEPTION OF SKYBAGS BACKPACKS

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A STUDY TO UNDERSTAND BRAND
PERCEPTION OF SKYBAGS BACKPACKS



from the house
of


PRODUCT MANAGEMENT
ASSIGNMENT

Submitted By:
Name: LALIT SINGH BIST
Roll No. : 1719142 (A)
Batch: 2017-19

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Contents
CHAPTER 1 .............................................................................................................................................. 3
THE BRAND ............................................................................................................................................. 3
1.1 VIP INDUSTRY AND ITS BRAND ..................................................................................................... 4
1.2 PRODUCT PORTFOLIO ................................................................................................................... 6
1.3 BRAND BACKGROUND ................................................................................................................ 10
1.4 MARKET INSIGHT ........................................................................................................................ 13
CHAPTER 2 ............................................................................................................................................ 15
BRAND POSITIONING ............................................................................................................................ 15
2.1 BRAND POSITIONING STATEMENT ....................................................................................... 16
2.2 PERCEPTUAL MAPPING ............................................................................................................... 17
CHAPTER 3 .......................................................................................................................................... 18
BRAND SURVEY ................................................................................................................................... 18
3.1. THE BRAND IDENTITY PRISM (KAPFERER’S):- .................................................................... 19
3.2 BRAND IMAGE ........................................................................................................................... 20
3.3 REVIEW OF BRANDING STRATEGY .............................................................................................. 20
3.4 BRANDING EFFORTS AT LOCAL LEVEL ......................................................................................... 29
3.5 FINDINGS ..................................................................................................................................... 34
CHAPTER 4 ............................................................................................................................................ 35
RECOMMENDATION ............................................................................................................................. 35

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CHAPTER 1
THE BRAND

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1.1 VIP INDUSTRY AND ITS BRAND
VIP Industries Ltd. is the flagship company of the DG Piramal Group. Established
in 1971, it is a leading luggage manufacturing company, which manufactures
strollys, suitcases, executive cases, backpacks and other hard and soft-sided
luggage. It owns reputed brands such as VIP, Alfa, Footloose and Buddy. It has
two manufacturing units in India and various subcontract operations in China
and Indonesia. Currently, it has a workforce of nearly 2000 people. VIP is a well-
known and reputed brand name in India. VIP has been increasing its presence in
world markets in the luggage industry.
The company has operations across the globe in five continents. It has offices in
the USA, South Asia, Middle East, Africa and Europe, Worldwide, VIP products
are sold across 1300 retail outlets in 27 countries. Currently, it exports its
product to West Asia, Europe, the USA, and select African and South East Asian
countries.
VIP is the market leader in the organized luggage industry in India with more
than 50% market share, manufacturing and supplying a wide range of hard sided
and soft-sided luggage. Established in 1971, it is Asia’s largest and the world’s
2nd largest luggage manufacturer and is an end to end supplier catering to the
needs of a diversified customer mix of value for money and mid to high end
premium segments. Amongst the most recognized and trusted brands in India
with its flagship VIP brand, the company has diversified to other brands as well
through green-field and brown-field expansion like Carlton, Caprese, Skybags,
Aristocrat and Alfa. VIP also has a moulded furniture business under the brand
name Moderna.
Strong brand equity to drive volume growth
A combination of continual innovation and extensive advertising has led to the
growth of its flagship VIP brand which is synonymous with luggage in India. The
company is also developing its youth oriented brands Skybags, Carlton and
Caprese which are witnessing exponential growth. This has helped VIP sustain
its leadership position in the Indian organized luggage industry.
Evolution of market dynamics offer significant upside potential

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India has the world’s largest youth population with the median age being ~ 27.3
years. The intense competition between VIP and Samsonite has also led to
increased advertising and promotion thereby extending the reach of the 2
brands.
Rising consumer preference for branded products coupled with higher visibility
of luggage brands is expected to increase the share of the organized market,
directly benefiting its market leader VIP.
KEY PEOPLE






Mr. Dilip G. Piramal
(Chairman & Managing Director)
Ms. Radhika Piramal
(Vice Chairperson & Executive Director)

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1.2 PRODUCT PORTFOLIO
PRODUCT PORTFOLIO OF VIP INDUSTRIES

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BRANDS PRODUCTS TARGET AUDIENCE
Carlton Backpacks, Messenger bags
,briefcases,
Duffel bag, Trolley bag
Businessmen
Tagline : New Face of Business
VIP bags Backpacks, Messenger bags ,Duffel
bag,
Trolley bag
Quality conscious customers
Skybags Backpacks, Messenger bags , Duffel
bag, Trolley bag
Travelers who like to make a style
statement everywhere they go
Caprese Auxiliary Pocket like Purses/Murses
Fanny packs ,Small accessory cases
Fashion conscious ladies
Aristocrate Backpacks, Messenger bags
,briefcases,
Duffel bag, Trolley bag
Durability and cost conscious people.
Alfa Backpacks, Messenger bags
,briefcases,
Duffel bag, Trolley bag
• Cost conscious people
• Value-for-money brand

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ABOUT SKYBAGS
Skybags is aimed at travelers who like to make a style statement everywhere
they go.
While the bags offer world class functional features, the brand is committed to
help you Move in Style through vibrant and unique designs that add an edge to
the traveler's personality. Behind the stylish aesthetics, lies over four decades of
design and engineering innovation, resulting in products that are as durable and
reliable as they are stylish!

Apart from being the first Indian brand to manufacture printed polycarbonate
luggage, Skybags also manufactures a wide variety of products like trolleys,
rucksacks, backpacks, duffels, laptop bags, everyday travel accessories and short
haul essentials made from quality materials.

Skybags hails from VIP Industries (est. 1971), market leaders for over 40 years;
and shares its roots with sister brands like VIP, Carlton and Caprese.


Currently Skybags brand ambassador is
Actor Varun Dhawan

Law & Kenneth agency handle the
creative duties of VIP's Skybags

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PRODUCT PORTFOLIO OF SKYBAGS





BACKPACKS RUCKSACKS CASUAL BAGS
MESSENGER &
SLINGS
LUGGAGE BAGS
DUFFLES & DUFFLE
TROLLEYS
ACCESSORIES

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1.3 BRAND BACKGROUND

1968  The Company was incorporated on 27th January as private
limited company under the name and style Aristo Plast Pvt.
Ltd., and commenced its activities by taking on job work in
plastic moulding. The Company became a deemed public
limited company under section 43-A of the Companies Act,
1956 on 15th March, 1973. The operational management of
the Company changed hands.
1971  The Company became a wholly owned subsidiary of Blow Plast
Ltd.
1973  The Company established complete manufacturing facilities
which included injection moulding, electroplating, anodising,
frame bending, press shop, component manufacturing and
assembly.
1979  The Company implemented its first expansion programme at
Nasik (Maharashtra) increasing the production capacity from
40,000 to 60,000 pieces of luggage per month.
1980  A new tool room was commissioned for the manufacture of
sophisticated press tools, jigs, fixtures, dies and moulds.
1981  The Company implemented a second expansion programme
by setting up a new unit to increase the production capacity
from 60,000 to 90,000 pieces of luggage per month.
1982  The Company launched a new project at jalgaon
(Maharashtra) for the manufacture of soft luggage which was
sold under the name "SKYBAGS".

 The Company undertook a modernisation programme at
Nasik by replacing older machines and technology, thereby
improving product quality and productivity, conserving power
and improving storage and material handling systems.

 Marketing of the Company's product viz., VIP moulded
luggage and "SKYBAGS" soft luggage is carried out by Blow
Plast Ltd., who have a strong network of branches all over the
country. In addition, the Company directly sells to selected
customers and wholesalers.
1985  The new moulded luggage plant at Jalgaon made a significant
contribution to the total output. A 25% excise duty was

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imposed on moulded luggage. The excise duty was exempt
from March.

 However, as a result of much larger volume of production and
cost savings, the Company was able to absorb half of the
burden of exicise duty, the other half being absorbed by the
dealers. With a view to widen the consumer base, the
Company started producing relatively low priced luggage.

 -The capacity of the Jalgaon plant was expanded and the Nasik
plant was being modernised. A new factory was set up at
Nagpur in Maharastra for the manufacture of moulded
luggage.
1986  The Company ceased to be a subsidiary of Blow Plast Ltd.

 The Company launched a new range of moulded luggage
under the brand names "International Tourister" and
"Odyssey".

 The all plastic "International Tourister" range of suitcases
were aimed at the middle and lower segments of consumers,
the "odyseey" was to cater to the more discerning consumers.

 The Company issued 24,00,000 No. of equity shares of Rs.10
each at a premium of Rs.2 per share linked to 9,60,000 15%
secured redeemable non-convertible debentures of Rs.100
each for cash at par.
1994  The Company withdrew from the Industrial Crates line and
opted out of the luggage exports markets of Nigeria and CIS
countries
2000  The Company has approved the scheme of amalgamation of
Cristobal Investments Co Ltd, and its wholly owned
subsidiary Pristine Plast Ind Ltd with the company effective
from 1st April.
2001  The Company has launched a new range of Moderna
moulded chairs in wood finish.

 The Dilip G Piramal-headed VIP Industries has entered into a
strategic tie-ups with the France-based luggage maker
delsey.

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 VIP Industries Ltd., a luggage manufacturer, has entered into
a strategic alliance with Delsey.

 VIP, has bagged its largest order of over 55,000 briefcases for
the German market.
2004  Vip Industries Ltd. has informed that the Company's bid for
acquisition of certain Assets of Carlton International plc U.K.
which is under liquidation, has been accepted
2005  VIP enters soft luggage segment
2009  Vip Industries Ltd has informed that at the meeting of the
Board of Directors of the company held on June 30, 2009,
Ms. Radhika Piramal has been appointed as an Executive
Director of the Company w.e.f. July 13, 2009.

 VIP Industries Ltd has informed that the Board of Directors of
the Company at its meeting held on June 30, 2009, Ms.
Radhika Piramal has been appointed as an Executive Director
of the Company w.e.f. July 13, 2009.
2012  Vip Industries Ltd has informed that a wholly owned
subsidiary of the Company by the name VIP Industries
Bangladesh Pvt. Ltd. has been incorporated to set-up luggage
manufacturing plant in Bangladesh.

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1.4 MARKET INSIGHT

COMPETITOR ANALYSIS FOR SKYBAGS

1. DIRECT COMPETITORS –CORE PRODUCTS





SAMSONITE-: Samsonite, American
Tourister,Hartmann,Tumi & Speck
SAFARI
WILDCRAFT

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2. OTHER COMPETITORS









PUMA
NIKE
FASTRACK
LIBERTY-LouiVuitton
ADIDAS-Gucci

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CHAPTER 2
BRAND POSITIONING

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2.1 BRAND POSITIONING STATEMENT


a. Skybags is aimed at travelers who like to make a style statement
everywhere they go.
b. Skybag’s positioning is also more youth-centred compared to
Samsonite, and in our county, that can never be wrong and
concentrated on sports events, college fests, etc.
c. The best part about the Skybags is that they are very light weight and
very good quality.
d. While the bags offer world class functional features, the brand is
committed to help you Move in Style through vibrant and unique
designs that add an edge to the traveler's personality.
e. Skybags also manufactures a wide variety of products like trolleys,
rucksacks, backpacks, duffels, laptop bags, everyday travel accessories
and short haul essentials made from quality materials.
f. The brand is full of energy and style hence Varun Dhawan's association
is perfect for the brand as he brings out the above promise perfectly.

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2.2 PERCEPTUAL MAPPING



Prestige Price
NIKE REEBOK
WILDCRAFT
SAMSONITE
AMERICAN TOURISTER SKYBAGS
Mass Market Exclusivity
VIP
ALFA

Affordability

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CHAPTER 3
BRAND SURVEY

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3.1. THE BRAND IDENTITY PRISM (KAPFERER’S):-






Prism of
Skybags
Physique
logo,different size,
and creative design
colour
Personality
Young , Stylish &
Adventurous
Culture
cosmopolitan
culture
Self -Images
I fill more
energentic.
I fell more young.
Reflection
Skybags has created
Ad campaigns
online social media
for the today
generation.
Relationship
Customer centeric,
engaging programs
like canvas project

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3.2 BRAND IMAGE

Skybags - the youth centric stylish luggage and backpacks brand from V.I.P
Industries’


3.3 REVIEW OF BRANDING STRATEGY

The biggest success has been Skybags for the VIP Industries. It was launched in
2011 for the hyper markets, with a high volume and low margins strategy.
Their advertising campaigns also worked well, led by brand ambassadors such
as actors John Abraham and Varun Dhawan. Skybags has become as large a
brand—in terms of popularity—as the flagship VIP brand. [It contributed 28
percent of sales in FY17].
The current business environment for VIP Industries.
 VIP brands have been doing well over the past year. But they got a major
jolt with the introduction of the GST rate of 28 percent compared to the
18-19 percent tax that they paid earlier. This happened because luggage
is seen as a consumer durable product. But the hike is very steep, so they
will have to increase prices by 10-12 percent for the main brands if they
want to maintain the same margins.

 Premium brands like VIP, Skybags and Carlton will be in a position to take
a price rise; they have already raised prices by 6-8 percent.
About the overseas market panning out
Dilip Piramal (MD of VIP Industries) on the interview with Forbes India had sad
that “there are few options in the luggage space. The overseas market has

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been quite tough. Europe has been on the decline since 2008. In luggage, the
entry barriers are high. So for a new product to be launched overseas will be
very expensive. It is a better strategy instead to concentrate on India’s domestic
market, and for growth, we should tap new categories. But for the next 12
months, we are fine with focusing on the luggage and handbags segments. Our
strength is branding and retail distribution.”




 The company focused or approached a twin strategy
1. Creative advertising targeted towards their segment, which helped in
making it such a strong brand and
2. Engaging effectively with its core target audience –through social
media campaign like given below

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SKYBAG CAMPAIGN
1. The Skybags Canvas Project
 The Skybags Canvas Project’ is a one-of-a-kind campaign that
strives to provide an exciting opportunity for artistic minds to
create designs exclusively for a new collection of Skybags.

 The Skybags Canvas Project is an unconventional platform for
creative professionals and amateurs alike to channel and
extensively display their creative energies. Having created a
microsite www.skybags.co.in/canvasproject to host the contest,
participants can download the design kit from the website and
upload an original design including Skybags Logo onto the
microsite. The designs that generate the maximum ‘likes’ from their
friends and followers hold a chance to win.

 Speaking about the project, Sudip Ghose, CEO VIP Industries said,
“Skybags is a youth-oriented and fun brand, aimed at enthusiastic
seekers and achievers. Along with being a great opportunity for the
audience, ‘The Canvas Project’ is also a way of understanding the
perception of our ever-evolving customers and aligning Skybags
with the same. This helps us add a burst of freshness and appeal to
the brand and provide quality products. The previous seasons
received an overwhelming response and we are excited to see what
this season brings.”

 All the entries will be personally evaluated by Varun Dhawan, the
brand ambassador, Skybags and Kamal Pandit Design Director, VIP
Industries Limited before deciding the winning entry. The winning
design will be featured on the latest collection of Skybags. The
runner up of the contest will be awarded with a GoPro Camera
while the third-place winner will be given the all-new Amazon Echo.
Skybags will gift a backpack to weekly winners as well.

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 To participate, one has to simp ly log on to
http://www.skybags.co.in/ and submit their designs.

 The 4th season of its innovative, much appreciated annual design
contest ‘The Skybags Canvas Project ‘contest ends on 25th May,
2018

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2. #BagTheBall Campaign

 It is impossible not to be in awe of the FIFA World Cup; the world’s
greatest sports event that brings people from different cultures all
together! The FIFA World Cup fever has gripped India as well.
Amidst this frenzy, Skybags, launched a creative digital challenge
“Bag The Ball”.

 #BagtheBall is a simple yet quirky challenge that encourages people
to showcase their creativity. To accomplish this challenge, all they
have to do, is bag the ball in the most innovative way possible. With
#BagTheBall, Skybags aims at engaging with everyone across the
country and not just the digital-savvy youth.

 World-renowned cricketer, Irfan Pathan kick-started the campaign
on Instagram and scored a goal by bagging the ball in his very own
Skybags backpack. Fellow cricketers Harbhajan Singh and Jasprit
Bhumra followed the trend with their own creative videos. Keeping
the fever alive, Indian Football Team Captain Sunil Chhetri also
shared a video encouraging his fans to participate. Skybags has
already received hundreds of quirky videos for this challenge. To
participate in the contest, all one has to do is record themselves
bagging the ball, upload it on social media, and tag @inskybags with
#BagtheBall. Lucky winner will score big with iPhone X, GoPro and
iPad. Contest ends on July 15, 2018.

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 Talking about the campaign Mr. Sudip Ghose, CEO, V.I.P Industries
says, “#BagtheBall challenges people’s creativity and encourages
everyone regardless of age and gender to show off their football
moves. As a brand, we are always looking at ways to innovate and
to offer something unique, which truly resonates with our
audience. The idea is to reach out to and engage with all especially
the youth. It is seeing tremendous response with entries coming
from all across India. Whether one is a fan of the game or not this
challenge is for everyone.”



3. ‘Wacky Wanderers’ Campaign
 Skybag, the youth bags brand from the house of V.I.P. Industries,
has announced a digital campaign ‘Wacky Wanderers’.

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With the help of its new campaign, Skybags aims to connect with
young and travel buffs that look at travel with a sense of craziness.
As part of the campaign, the brand will allow consumers to realize
their out-of-the-box travel dreams.

The brand has introduced a dedicated micro-site for the campaign,
that lets consumers share their quirky and offbeat travel plans.
Moreover, bollywood star and brand ambassador Varun Dhawan
will review all the entries and then decide on the lucky winner.
Skybags will give away a new backpack daily to the wackiest entry
of the day.

Commenting on the marketing strategy Sudip Ghose, Vice
President-Marketing, V.I.P Industries, says, “Travelling is all about
experiencing something new and the youth are constantly looking
for just that. This digital outreach is a great way to engage with our
audience and it also gives us an insight into how our consumers
think. Through this campaign, we want our audience to be
adventurous and take the liberty to think of the craziest things they
would want to do on their travels across India and one lucky winner
will get a chance to live this dream. It’s time to be Wacky now!”

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4. #PlayBackToBack Campaign
 On 2017 summer, Skybags, a youth brand from the house of V.I.P
Industries, has launched campaign #PlayBackToBack to launch its
latest range of backpacks. Creatively conceptualised and executed
by Law & Kenneth Saatchi & Saatchi, #PlayBackToBack showcases
an imaginary scenario where brand ambassador, Varun Dhawan
comes out of a bag portraying a non-stop life, packed with fun and
style.

 The campaign is dubbed to some foot tapping background music
describing the features of the new backpacks and at the same time
representing multiple styles for different lifestyles. The new
collection includes 81 fresh designs that reflect the passion and
personality of college goers, young professionals and explorers who
are ready to take on the world. From sturdy weekend rucksacks to
impressive professional laptop bags to stylish college backpacks
and colorful glow in the dark school bags there is something for
everyone.

 Talking about the new collection and the campaign Sudip Ghose,
Vice President – Sales and Marketing, V.I.P Industries says, “As
always the new collection will offer the best and the latest trends
in backpacks. Today backpacks have become an essential part of
our lives. People don’t just carry backpacks anymore, they wear
them like an accessory. In this campaign, we have used an
imaginary way of storytelling that unveils the collection and also
depicts the lifestyle of our consumers which is portrayed
exceptionally well by Varun.”

 Speaking from a creative perspective Rahul Nangia, Joint National
Creative Director, Law & Kenneth Saatchi & Saatchi says, “Skybags
is fun stylish brand, meant for the youth. The centre piece of the
campaign is a film which captures the energy of the brand and its
endorser, but is not limited by logic. And the best part is, it’s all
been shot live.

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CLICK ON THE DOWN LINK FOR MORE UNDERSTANDING:
https://www.youtube.com/watch?v=-eKOxc_HGlc

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3.4 BRANDING EFFORTS AT LOCAL LEVEL

QUESTION 1

 As per my research project the research says that most of the
awareness of these particular brands is get through the
advertisement i.e 90.3% By this we can clearly say that the
advertisement of skybags are very effective in promoting the brand.

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QUESTION.2

 The research says that 77.4 % of people are ready to spend Rs 1000-
2000 for a bagpacks.

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QUESTION.3

 The research says that 83.7 % of people would buy bagpacks once in
year. Whereas 9.7 would like buy once in two year.

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QUESTION.4

As per my research project the research says that most preferred brand of
bagpacks is Skybags with 45.2% followed by American tourister, Nike,
wildcraft and masco with 22.6%,16.7%,9.7% and 8 % respectively

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QUESTION.5

The research project the research says that the single most reason that
customer choose Skybags is Aesthetics (look ,colors,fit) with 58.1% followed by
brand with 25.8%

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3.5 FINDINGS


 Most of the awareness of the skybags brands is get through the
advertisement i.e. 90.3%.
 Most of the people like buy a bag after 1 year.
 The research says that 77.4 % of people are ready to spend Rs 1000-
2000
 Most preferred brand of bagpacks is Skybags with 45.2% followed by
American tourister, Nike, wildcraft and masco.
 The single most reason that customer choose Skybags is Aesthetics
(look ,colors,fit) with 58.1% followed by brand with 25.8%

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CHAPTER 4
RECOMMENDATION

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 Due to increasing local players and growing competition from the foreign
players also the company should come up with new strategies and lower
there price.
 It should be keep more invest on advertisement rather other factor as it
attracting most of the customer.
 It should keep itself high in technological, innovation function like canvas
project .
 As most of the people like buy a bag after 1 year of their old bags So
company should more focused enhancing the durability of the bags.
 The research says that 77.4 % of people are ready to spend Rs 1000-
2000. So Company should more focused on manufaturing this price rage
product .