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Submitted to

Dr. M.R. Suresh

pRODUCT maNAGEMENT25/8/2015

Contents
About 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

About the Company


Incorporated 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 Companys 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 Background
Foreign 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 OctoberDecember 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 Technology


Need
One 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 wont 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.

Technology
There would be four features that make the bag anti-theft.
1.
2.
3.
4.

Slash-proof materials
Zip Locks
Puncture Resistant Zip
Anchor Strap

Slash Proof Materials could be used to make the bag so that the objects inside
the bag cant 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
2

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 wont 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 cant 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 cant be easily cut by a
thief.

Form
The 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 slashproof anchor strap. The flexible steel laminated fabrics would be used to make
the bags. The steel would be of light weight so that it wont 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


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

Technology
The 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 products


Anti-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 companys 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.

Screening
A-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.

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
Sleeping bags
Sleeping Bags with
technology
growth rate
AWARE
during 1yr
Aware owners who will
try
AVAILABILITY at stores
TRIERS recommending
bag
Profit margin

millio
30 n
70%
30%
10.00% (assumed in india)
30%
50%
100%
10%
500
4.72 milli
50000 on

in rupees

9,4
50.00 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
Bags
Bags with technology
growth rate
AWARE during 1yr
Aware owners who
will try
AVAILABILITY at
stores
TRIERS
recommending bag
Profit margin
6

millio
1282 n
50%
30%
11.90%
25%
20%
50%
5%
720

20.59533
00

milli
on

28,604.6
3

units

in rupees

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

Students

Information Points

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

Measurement Scale
Nominal scale
Nominal Scale
Interval scale
Nominal Scale
Interval Scale
Nominal Scale

Nominal scale
Nominal Scale
Interval scale
Nominal Scale
Interval Scale
Nominal Scale

Affinity towards
product
Affinity towards
Company

Questionnaire
Are 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. Yes
2. No
8

If yes to the previous question, how adequate do you find the device in
protecting your luggage?
1

Adequate

Inadequate

Have you used wildcraft luggage bags before?


1. Yes
2. No
If yes to the previous question , How satisfied are you with the wildcraft
products?
1

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

Very Likely

Very Unlikely

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


1.
2.
3.
4.

5000-6000
6001-7000
7001-8000
8000+

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

_____________________________________
Initial Findings
Frequency of Travel

Does your current luggage include any anti-theft devices?

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

10

Satisfaction with wildcraft products


12
10
8
6
4
2
0

3
No

blank

Yes

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.
11

12