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Restructuring / Turnaround Strategies Case Study

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Case Title:

VIP: The Indian Luggage Carrier's Turnaround Strategies

Publication Year : 2004

Authors: Phani Kumar P. S, T. Phani Madhav

Industry: Home Appliances and Personal Care Products

Region:India

Case Code: RTS0038

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
VIP Industries (VIP) is India's largest manufacturer of luggage carriers, and over the years, has become a generic name for luggage for the Indian traveller. Set up in 1971, VIP emerged as a popular brand during the 1980s and the 1990s predominantly due to innovative products backed by successful brand building initiatives. However, in the new millennium the company experienced decreasing sales and had to struggle with several challenges due to stiff competition from multinational brands and the presence of a huge unorganised sector that offered cheaper imitations.

Pedagogical Objectives:

  • To discuss the strategies taken up by the management to turnaround the company
  • To discuss how VIP changed its retailing structure to provide a better service to the consumers and its efforts to reposition itself as a stylish and modern brand
  • To discuss VIP's ambitions to become a popular global brand by focussing on the VIP's international acquisitions and tie-ups.

Keywords : VIP Industries; Dilip Piramal group; Samsonite Corporation; Carlton International; Nitol Motors PVT Limited; Cheaper Chinese imports; Unorganised sector; Delsey; Improved retailing ambience; Restructuring / Turnaround Strategies Case Study; Advertising; Acquisitions and tie-ups

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