1. SMART BAG Presented By: Priya Shah (104) Sejal Bhodia (68) Vikas Nandanwar (36) Chhavi Sonkar (115) Anuraag Pandey (PG – 33) 1

2. LUGGAGE INDUSTRY Luggage bags includes travel bags, suitcases, carry on, leather bags, etc Market size : approximately Rs. 2,200 crore (retail market) Largely Unorganised sector, only 4% is Organised sector Branded sector growing at 15% 2

3. Contd.. Global presense In India, hard luggage preferred over soft ones Drivers : a. Increasing disposable income b. Increase in travelling c. More of a lifestyle product d. Expansion in retailing and speciality stores 3

4. Contd.. Challenges : a. Stiff competition from unorganized market b. Entry of global products c. Increase in costs of raw materials Trends : a. Shift in preference to soft luggage b. Manufacturers adding new product categories c. Assistance provided for franchisees 4

5. Contd.. Competition : a. Stiff competition from unorganized market b. Global products at low cost c. Major dominant players 5

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7. Facts Largest luggage brand in Asia, headquarters in Mumbai 2 nd largest luggage manufacturer in world (after Samsonite) Market leader in India (60% market share) Main line of business – Luggage (90% of sales) Diversified product range 7

8. Facts (Contd) Brands - Alfa, Footloose, Elanza, Buddy, etc Acquired UK based Carlton Distribution rights for Delsey in India Price range – Rs. 900 to Rs. 12,000+ per piece Revenues: $ 116.363 million, Earnings: $ 4.334 million 8

9. Existing Products 9

10. Competitor - Samsonite 10

11. Customer Reviews/Feedback Pilferage, theft Mis-handling Improper locking system Security 11

12. Idea Travel bag with security system 12

13. Benefits First mover advantage Value to customers Increase market share Higher profitability Anti-theft product Higher brand value 13

14. Concept Development 14

15. Specifications Polypropylene Thermal Sensors Weight Gauge Electronic Pressure Sensors Electronic Key 15

16. Smart Bag 16

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18. VIP smart bag Target market: Train and Bus travelers(approx.20 millions people travel every day by trains and buses) Larger consumer base 18

19. VIPs smart bags positioning “Better to lock out than luck out..” 19

20. Promotional strategy 1. Online media(facebook,Youtube) 2. Electronic media like television 3. Events organized in mall, shopping complex etc 20

21. Place (distribution network) 1. Dealers:6000 2. 400 exclusive shops 3. 200 retail outlets in hypermarkets and lifestyle stores 21

22.  VIP has its brands registered with the Canteen Stores Department (CSD) and is a regular supplier to the same  VIPs can sells its smart bags through E-commerce and E-retailing 22

23. Marketing budget VIP is planning to spend Rs. 25-30 crore on advertising and brand marketing on its other brands such as delsey,footloose,alpha,skybags and buddy VIP Smart Bag Budget – Rs. 10 lacs 23

24. Test Market Target customers : Railway travellers Test Market : Banglore, Delhi, Kolkata, Mumbai. 24

25. Business Analysis Cost of a unit of Bag including shipping charge = Rs. 4915. Cost of Pressure sensors per 3 units = Rs. 750. Total cost of a unit of sensor Bag = Rs. 5665. Transportation cost : Banglore -> Rs. 22oo/mt Delhi -> Rs. 1800/mt Kolkata -> Rs. 3115/mt Mumbai -> Rs. 1500/mt Total units to be distributed across the cities -> 528 nos. Total cost of Product including transportation -> Rs. 2995315. Marketing Budget-> Rs. 10,0000. Total cost incurred-> Rs. 3995315. 25

26. Profit @ 30% -> Rs. 1750. Selling Price -> Rs. 7635. BEP Reached after sale 0f 524 units. Expected sales per day-> 10 units BEP in days -> 53 days Profit at the end of sale of first consignment-> Rs. 6800. 26

27. THANK YOU 27