7/23/2019 2,3,4,5 product management

1/8

Section 2. Competitor Analysis

Competitor Identification

Most directly competitive: VIP, Samsonite

Less directly competitive: Aristocrat, Safari

A. Strategic Groups

Strategic Group Major Competitors Share

1. Large, brandedconsumer luggage bagcompanies

VIP ( ons S!"bags#

Samsonite ( ons $merican %ourister#

&'

)'

*. Smaller pla"ers $ristocrat

Sa+ari

ildcra+t

-

-

). $ll others $ll others 1'

B. Strategic Groups

Strategic Group Characteristics /Strategies Strengths ea!ness

1. Large,brandedconsumerluggagecompanies

Stress on 0ualit"

rand building

e2ercises throughhea3" ad3ertising

4e3eloping ne

product inno3ationssince the" are themar!et leaders

5a3e presence in

all productcategories ($67#

Production scale

economies Strong distribution

netor! consisting o+e2clusi3e outlets andothers dealers

Strong brand name and

lo"alt"

5ea3" ad3ertising

spends are necessar"to maintain brand inthe +ace o+ aggressi3emar!et challengers

ecoming

increasingl" di++icultto di++erentiate +romcompetition purel"

based on +eatures

*. Smallerpla"ers

Mar!et challengers

tr"ing to create abrand identit" inthe minds o+ theconsumers

Loo! to dominate

in some nichecategories/segments

rather than beingper3asi3e

Cost6e++ecti3e products

%a!e ad3antage o+ ne6

age channels li!e e6commerce to increasesales e++ort

5igher ra material

and production costs 8nable to in3est

hea3il" inpromotions,ad3ertising etc.

5ighl" limited +ocus

on 9:4

7/23/2019 2,3,4,5 product management

2/8

C. Major Competitors

Competitor Characteristics / Strategies Strengths ea!ness

VIP ;3erall mar!et leader,

presence +or the last )< "ears =arl" product inno3ations to

establish a brand +or itsel+ Competes in all segments

5igher +ocus on mid6

segment and no increasing+ocus on premium segment

Massi3e ad3ertising and

promotional spending toprotect share

=conomies o+ scale,

lo costs Suppl"6chain

e++iciencies 4eep +inancial

resources rand name and

Lo"alt"

ea!er in

premiumsegment

Lac! o+ product

inno3ation inrecent "ears,spends *6) on9:4

Samsonite(ons

$merican

%ourister#

orlds number 1 luggagema!er

$merican %ourister +or mid6

segment and Samsonitebrand +or premium segment

5igh 0ualit"/ 5igh6price

positioning

Parent compan" isorld leader inluggage bags

Spends > o+

re3enue on 9:4 5igh 0ualit"

products

7/23/2019 2,3,4,5 product management

3/8

BBBBB abo3e a3erage @@@@@ strong

Section ". Mar!et Analysis

A. Mar!et Identification# Luggage Mar!et in India

B. Actual and $otential Mar!et Si%e and Gro&th

*'1' *'1E Projected Groth

India F&1*million F

7/23/2019 2,3,4,5 product management

4/8

2, -0pected etaliation#+

=2panding o+ the distribution netor! b" the e2isting pla"er. $ccessibilit" o+ product.

Price cuts : discount.

2. Bargaining $o&er 1f Suppliers#+

4ominance o+ +e suppliers : lac! o+ substitute products.

$lthough there is an additional capacit" o+ the ra materials re0uired +or the moulded

luggage, there is limited to the 0ualit" o+ the a3ailable material. %here is no substitute

ra material to the material used at present i.e. Pol"prop"lene : $S. %his shi+ts the

bargaining poer toards the suppliers o+ the ra materials. 9a materials ma!e up

+or E' o+ the cost.

". Bargaining $o&er 1f Buyers#+

%he organiHed sector has +e bu"ers compared to the suppliers o+ ra material, hich

is a3ailable in plent". %he ra material +orms E' o+ the total cost o+ the product.

%here is no restricti3e sale polic" b" the go3ernment as regards to the ra materials.

5ence bu"ers can ha3e resource to the international mar!et. %he ra materials are

under the open general license hich can import +reel".

In the unorganiHed sector the suppliers o+ the ra material (rec"cled plastic# are man"

: this shi+ts the bargaining poer to the bu"ers. %here is no scope o+ bac!ard

integration b" the bu"er because o+ the number o+ suppliers : the +ree import polic".

%here is no product di++erentiation o+ the ra materials.

. Intensity of ri(alry among e0isting competitors #+

%he moulded luggage industr" can be di3ided into ) segments6

Standard

Popular

Premium

In each segment there are *6) competitors. VIP is the leader o3erall but in each segment there

is intense competition as each compan" tries to ma2imiHe its mar!et share.

3. Sustitute $roducts #+

%he presence o+ substitutes hich per+orm +unctions essentiall" similar to the e2isting one :

o++ering price ad3antages put a capacit" on the pro+its o+ the industr". %he luggage industr"

can be di3ided into the hard moulded luggage : the so+t luggage. %he so+t luggage is aper+ect substitute +or the moulded luggage. ith a groth rate higher than the moulded

7/23/2019 2,3,4,5 product management

5/8

luggage there is a capacit" to the e2tent the hard luggage mar!et groth. $lso the +le2ibilit"

o+ the so+t luggage in terms o+ siHe design price etc. ma!es it a potential threat to the hard

moulded luggage mar!et.

D. Distriution System

*E o+ sales 3olume comes +rom compan" oned and +ranchised stores hile the

remaining comes +rom dealers and other retailers

Increase proli+eration o+ product o++erings on e6commerce plat+orms

-. Mar!et *rends and De(elopments

Shi+t in demand +rom hard luggage to so+t luggage

=2pected groth o+ around &'6 &E in the premium sector

'. 4ey success 'actors

$resent

rand recognition

Product ualit"

$ccess to major channels

Gain mar!et share in premium brands

'uture

Product inno3ations to ensure increased sa+et" and con3enience

Increased +ocus on premium o++erings

7/23/2019 2,3,4,5 product management

6/8

Section . Mar!et Analysis

A. *rends and $otential -(ents

Source 4escription Strategic Implication Importance

%echnological %echnological +eatures o+ the

bag is a di++erentiating +actor.

%he securit" technologies are

3er" important.

5igh implications as the

customers ould be

concerned about the

technologies used in such a

product

Ver" high

9egulator" ?o much regulator" issues Ver" limited Ver" Lo

=conomic Medium or lo relationship Ver" limited Lo

Cultural %ra3elers concerned

about the sa+et" andsecurit"

Customers sensiti3e

about the 3alue +ormone"

People ould compare the+eatures ith other a3ailable

products to chec! the 3alue.

Medium

4emographic Joung people interested in

tra3eling. %he" are illing to

bu" products i+ the" +ind

3alue +or mone".

ould ha3e positi3e impact

on the ne bag ith securit"

+eatures

5igh

%hreats 5igh competition+rom other brands li!e4ecathlon, VIP,$merican %ourister

8norganiHed sector

ha3e higher mar!etshare o+ luggage bags

5igher competition ouldha3e a negati3e impact on

the sales

5igh

;pportunities Groth o+ tourism in

India

Groth o+ mar!et +or

premium brands

%ra3elersK need +orsecurit" +eatures inags

5igh demand +or securit"

+eatures gi3es high hope

+rom the mar!et.

5igh

C. Scenario Analysis

%ra3elers ould bu" the bags pa"ing the higher price as it o++ers high securit" +eatures.

%ra3elers ould compromise on the securit" concern and go +or purchase o+ lo price bags.

7/23/2019 2,3,4,5 product management

7/8

D. 4ey Strategic 5ncertainties

ill the e2pected number o+ sales o+ bags be met

ill the customers be illing to pa" the higher price +or the bag

Section 3. Internal Analysis

A. $erformance Analysis

1jecti(e Area 1jecti(e

1. Sales $+ter one "ear +rom the

launch the sales estimated

according to the mar!et

conditions is *

7/23/2019 2,3,4,5 product management

8/8

A. 'inancial $rojections

$articulars$rojected

6$er unit I7,

;perating Statement

Mar!et share

Sales -*'

Cost o+ goods sold )*'

9:4 &''

Selling / ad3ertising >*1

Product G:$ E1>

4i3. : Corp. G:$ )'

1perating profit 829