Wildcraft iNDIA

SUBMITTED TODR. M.R. SURESH

Group no. 3

25/8/2015

ContentsAbout the Company...............................................................................................................................2

Industry Background.............................................................................................................................2

Luggage Bag with Anti-Theft Technology..............................................................................................2

Need..................................................................................................................................................2

Technology........................................................................................................................................2

Form..................................................................................................................................................3

Sleeping Bag with temperature control.................................................................................................3

Form:.................................................................................................................................................3

Technology........................................................................................................................................4

Value proposition from the two products.........................................................................................4

Screening...............................................................................................................................................4

IRP Table................................................................................................................................................7

Questionnaire........................................................................................................................................7

Initial Findings........................................................................................................................................9

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About the CompanyIncorporated in 1998 by Mr. K.S. Dinesh, WIPL (Wildcraft India Private Limited) is primarily engaged in manufacture of backpacks, adventure equipment and outdoor gear. In 2004, WIPL opened its first showroom in Bengaluru. As on March 31, 2012, the Company had 42 showrooms across India, of which 14 are franchisee showrooms. WIPL operates all the showrooms from leased premises. The Company’s manufacturing facility is located in Himachal Pradesh (HP). The Company also sources bags from Wildcraft Manufacturing Private Limited (an associate company, which exclusively caters to the production requirements of WIPL) which has manufacturing facility in Bengaluru. The combined output of both HP and Bengaluru manufacturing facilities is ~80,000 bags per month

Industry BackgroundForeign Tourist Arrivals (FTAs) in India during 2013 were 6.97 million with a growth of 5.9% as compared to the FTAs of 6.58 million during 2012 registering a growth of 4.3% over 2011. The Foreign Exchange Earnings (FEEs) from tourism in terms of US dollars during 2013 was US$ 18.445 billion with a growth of 4.0% as compared to FEE of US$ 17.737 billion during 2012 registering a growth of 7.1% over 2011. Substantial growth was observed in domestic tourism sector as the domestic tourist visits during the year 2013 was 1145 million (Provisional), showing a growth of 9.59% over 2012.The Major tourist influx was from the US and Europe while domestic travelers also constituted a major part of the tourist demographic. The tourist influx was maximum during the months of October-December and January- March. Peak months accounted for more than 9% of the tourist arrivals. For travel accessories, in the absence of a proper market study for India, only subjective estimates exist. Wildcraft believes the Indian outdoor gear market relevant to it should be worth $250 million; the range of footwear that could interest it is at $1.5 billion and the relevant sports apparel segment touches $1.2-1.5 billion (these are figures for a whole potential market).

Luggage Bag with Anti-Theft TechnologyNeedOne of the greatest troubles faced by travellers in India is theft. Especially while travelling in Trains and Long route buses during night time, people face the problem of their bags being stolen. Even during day time, pickpockets try to slash open the bags and steal valuable objects. The theft cases in trains, buses and even in airports are increasing.

There is a need of anti-theft bags for the travelers. There should be bags that could protect travelers’ valuable property. It should be designed in such a way that there is technology to avoid the pickpocketing of objects from the bags or avoiding the bag itself being stolen.

There should be a perfect zip locking system so that the pickpockets won’t be able to open the bag while travelers are sleeping or when they are not near the bag. While traveling in trains, the bags are kept in luggage lines. There are chances that the bag get stolen. So there is a need of anchor strap with lock that could avoid theft. If the material of the bag is slash proof, slashing of bag by pickpockets could be avoided.

TechnologyThere would be four features that make the bag anti-theft.

1. Slash-proof materials

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2. Zip Locks3. Puncture Resistant Zip4. Anchor Strap

Slash Proof Materials could be used to make the bag so that the objects inside the bag can’t be stolen by pickpockets by slashing open the bag. There are two technologies that could be used. One is Kevler Technology. Kevlar is high strength material that could withstand high impact. Because of its high tensile strength to weight ratio, it is five times stronger that steel. The second one is using highly flexible steel mesh. This steel mesh could be laminated between the fabrics. So that even if the outer layer is slashed, the objects inside the bag would be safe.

Zip locks would help in locking the zip so that the zip won’t be opened and objects stolen from the bag. There could be different type of zip locks. One is interlocking the zip pullers. Interlocking zip pullers ingeniously slide on top of one another and interconnect making it making it harder for pickpockets to unzip bag and whip out valuables. The other method is Zipper pullers can be attached to discreet security hooks to prevent pickpockets reaching into bag. Number locks can also be used. Zip could be locked using the anchor in the back that has number lock.

Puncture resistant Zip helps prevent pickpocket pilfering and forced entry into the bag. The zip can’t be tore open using pen or sharp tools. This would help in fully protecting the valuables when using Zip Locks.

The slash guard anchor strap is fixed to bag and tucked away in its own special pocket. When pulled out and engaged it can be used to attach to a secure fixture. It is reinforced with stainless steel wire so that it can’t be easily cut by a thief.

FormThe travel bag should address the need of the people for an anti-theft bag while traveling in trains and buses. There would be backpacks and rucksacks that have anti-theft technology. Backpack would be of the capacity of 25 L and rucksacks would be of capacities of 55 L and 65 L.

The bag would have common features and in addition would have anti-theft features including slash-proof fabrics, zip lock, puncture resistant zip, and slash-proof anchor strap. The flexible steel laminated fabrics would be used to make the bags. The steel would be of light weight so that it won’t add much weight to the bag. Zip lock anchor would be attached to the bag. Puncture resistant zip would be used. The anchor strap is slash guard and it is long enough that the bag could be tied to a fixed rod or pole

Sleeping Bag with temperature control Form:size 32 inch * 82 inches

stuff size 18 inches * 12inches

Fill : 2 kg insul-therm

Outer Fabric : 210t Polyester Taffeta

Liner: 230T Polyester

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Storage: Tyvek and stuff sack

Removable middle layer and hood provide freedom to adapt to seasonal temperatures

Oversized 2-way main zipper for maximum ventilation and ease of use

Fully unzips to become a blanket

Durable dust wrap with compression straps for easy transport and storage

Quilt though construction for lasting durability

Hook and Loop keeps zipper in place

Machine washable

European Norm (EN) 13537 tested

TechnologyThe company already utilizes synthetic polyester (dry) for water protection in its down sleeping bag. The incorporation of liners in the sleeping bags while adhering to fill/power ratio will likely lead to higher revenues with the increased ability to cater to sub-zero temperatures

Value proposition from the two productsAnti-theft technology is an area luggage bag manufacturers seldom focus on, the customers having to make do with a simple lock mechanism breakable with least amount of effort on the part of thieves. Anti-theft devices added onto the current product line of luggage bags would add value to the company’s offerings by offering a means to the customer to ensure the safeguarding of the consumers’ luggage.

Sleeping bags with better temperature control than the current offering by the company allow the company to target trekkers and camping groups who trek in the sub-zero temperature regions. This could also lead to the company developing further technologies for water resistant material for its backpacks as well.

ScreeningA-T-A-R Model for Temperature control sleeping bag with Liner

Buying Unit: Purchase point (person or department/buying center).

Aware: Has heard about the new product with some characteristic that differentiates it.

Available: If the buyer wants to try the product, the effort to find it will be successful (expressed as a percentage).

Trial: Usually means a purchase or consumption of the product.

Repeat: The product is bought at least once more, or (for durables) recommended to others.

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Wildcraft grew at a CAGR of 60-70 per cent, which over the next three to five years

should settle to around 40-50 per cent.

Wildcraft had 100 branded retail showrooms in India. There were 20 franchised

outlets. Most of these 120 outlets were profitable save five to six outlets, which

opened recently. Approximately 25 per cent of company turnover came from its

owned and franchised outlets. The balance 75 per cent was from distribution, large

format stores, online portal sales and institutional sales.

How to forecast sales and profit for proposed new item?

Profits = Units Sold x Profit Per Unit

Units Sold = market growth of wildcraft in sleeping bags

30 % aware of product Depends on market research

Wildcraft is looking to expand the in Bangladesh and Vietnam so the awareness will definitely increase in the other countries as well apart from India.

50 % who would try product if they can get it

100 % to whom product is available

10% of units repeaters buy in a year

Profit Per Unit = Revenue per unit - cost per unit

= 8500 – 800 = Rs. 500

domestic trekkers 30 million Sleeping bags 70% Sleeping Bags with technology 30% growth rate 10.00% (assumed in india)AWARE during 1yr 30% Aware owners who will try 50% AVAILABILITY at stores 100% TRIERS recommending bag 10% Profit margin 500 4.725000 million in rupees

4

0

9,450.0

0 units

A-T-A-R Model for Luggage Bag with Anti-theft technology

Wildcraft grew at a CAGR of 60-70 per cent, which over the next three to five years

should settle to around 40-50 per cent.

Wildcraft had 100 branded retail showrooms in India. There were 20 franchised

outlets. Most of these 120 outlets were profitable save five to six outlets, which

opened recently. Approximately 25 per cent of company turnover came from its

owned and franchised outlets. The balance 75 per cent was from distribution, large

format stores, online portal sales and institutional sales.

Profits = Units Sold x Profit Per Unit

Units Sold = market growth of Wildcraft in sleeping bags

25 % aware of product Depends on market research

20 % who would try product if they can get it

50 % to whom product is available

5% of units repeaters buy in a year

Profit Per Unit = Revenue per unit - cost per unit

= 6720 – 6000 = 720

domestic travellers 1282 million Bags 50% Bags with technology 30% growth rate 11.90% AWARE during 1yr 25% Aware owners who will try 20% AVAILABILITY at stores 50% TRIERS recommending bag 5% Profit margin 720

20.5953300 million in rupees

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28,604.63 units

On the basis of financial screening and technical feasibility, we filter the products further and choose the luggage bags with smart anti-theft devices.

Decision making context The management wishes to conduct the research to understand the feasibility of launching the product in Mysore

Research Objective: To gauge the market feasibility for launching the product To understand customer preferences regarding the product features

Research Design:The type of research would be exploratory, to gain insights into consumer preferences regarding pricing and features desirable in the product to be launched.

IRP Table

Source of information Information Points Measurement Scale

Students

Tourists(both domestic and foreign)

Travel patterns Product preference Satisfaction levels with

product Desired pricing Affinity towards

product Affinity towards

Company

Travel patterns Product preference Satisfaction levels with

product Desired pricing Affinity towards

product Affinity towards

Company

Nominal scaleNominal ScaleInterval scale

Nominal ScaleInterval Scale

Nominal Scale

Nominal scaleNominal ScaleInterval scale

Nominal ScaleInterval Scale

Nominal Scale

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QuestionnaireAre you fond of travelling?

1. Yes

2. No (exit)

How frequently do you travel?

1. Once or twice a week

2. Once or twice a month

3. Once or twice a year

4. Almost Never

Do you carry luggage with you frequently while travelling?

1. Yes 2. No

Which form of luggage do you favor the most?

1. Duffle Bags

2. Briefcases

3. Suitcase

4. Rucksacks

5. Backpacks

6. Trolleys

Does your luggage include any anti-theft devices?

1. Yes2. No

If yes to the previous question, how adequate do you find the device in protecting your luggage?

1 2 3

Adequate Inadequate

Have you used wildcraft luggage bags before?

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1. Yes2. No

If yes to the previous question , How satisfied are you with the wildcraft products?

1 2 3 4 5

Very Satisfied Very Dissatisfied

How likely are you to buy a Wildcraft luggage bag with smart anti-theft support?(Including zip locking, puncture resistant zip, anti-slashing and anchor strap)

1 2 3 4 5

Very Likely Very Unlikely

How much are you willing to pay for such a product?

1. 5000-60002. 6001-70003. 7001-80004. 8000+

Which other features would you like to see with this product?

_____________________________________

Initial FindingsFrequency of Travel

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Does your current luggage include any anti-theft devices?

Satisfaction levels with Wildcraft products among consumers with 1 being very satisfied

1 2 3 4 blank0

2

4

6

8

10

12

Satisfaction with wildcraft products

No Yes

9

1 Indicates strong likelihood of buying

The initial findings indicate a general liking for Wildcraft products among the survey respondents, with the respondents not averse to buying the product while favouring a price between Rs. 6000-7000 for the offering.

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