This presentation tells about the strategical changes in various procedure and it's impact on the company

1. Knowledge Management
Changes in marketing and logistic strategy of
VIP INDUSTRIES LTD land it’s impact
Submitted to :-
Mr Supratik Ghatak
Submitted by:-
ABINASH SEKHAR MISHRA (C-01)
(PRN-15020441012)

2. About the company :
 VIP Industries Ltd is world's second largest and Asia’s
largest luggage maker based in Mumbai, Maharashtra, India.
 The company manufactures plastic moulded suitcases,
handbags, briefcases, vanity cases and luggage.
 The company offers its products primarily under
the VIP, Carlton, Footloose, Alfa, Aristocrat, Skybags,
and Buddy brands.
 It has acquired UK luggage brand Carlton in 2004 .
 It also manufactures moulded furniture under
the Moderna brand.

3. Huge reduction in market share :
 In the late nineties and early 2000, VIP had 70 per cent
share of the luggage market. This is now down to 50 per
cent.
 The reasons for this are it faces intense competition from
its rival Samsonite through its Samsonite (high end
premium), American Tourister (mass premium) and AT
(value for money) brands.
 As regards to short haul products like backpacks there are
several branded and unorganized players like Wildcraft,
Tommy Hilfiger, Delsey, Nike etc.
 Safari was also gaining momentum in the value for money
segment

4. High attrition rate among sales personnel :
due to company’s declining performance and
high burden of work , the attrition rate among
sales personnel increased significantly.
Lack of sufficient warehouse :
due to limited number of warehouse company
faced logistic problems. Sometimes it resulted in
loss of business and customer dissatisfaction.

5. SOPs followed by luggage companies in area
of marketing and logistic :
Positioning of sales managers according to geographic
distribution area.
Location of warehouse in strategic geographic area to
increase sells ad avoid cost.
Aggressive selling process by huge advertisement
expenditure.
Providing better after sell services.

6. Solution for the problem
Appointment of own sales personnel in major outlets :
Company followed the principles of aggressive
selling appointing it’s own sales personnel in
major outlets to increase sales. It has been a huge
success.
Division of Sales & marketing manager on the basis of
type of business :
Earlier company followed geographical distribution
method of sales manager to facilitate sales which was a
huge burden on sales personnel . But from 2013,company is
following BUSINESS BASED distribution of managers.
e.g. - Different managers in charge of different business like
retail business, defense canteen and company owned
outlets.

7. Solution for the problem
Opening of warehouse at strategic location :
 Previously VIP INDUSTRIES LTD has only three
warehouses in India , which hampers the logistic of the firm
a lot.
 In 2010 company opened four new warehouses at strategic
locations, which resulted in increased sells and higher
customer satisfaction.
Going to e-commerce platform :
Company decided to go to e-commerce platform in 2011
which was the need of the hour . Currently e-commerce
platform consists of nearly 20 % of company’s total sales and
growing rapidly