Launching liberty’s bag libag


The company was incorporated on the 3rd Septtember ,1986 as a Public Limited Company and obtained the Certificate of Commencement of Business on 11th March 1988. The company has been set up to manufacture and sell leather and non leather shoes ,leather shoe uppers and leather garments Presently the company is engaged in the manufacturing of leather and non leather shoes. It has also set up a joint venture in Russia to manufacture shoes in 1991 under the name of M/S Liberty &Go ,with M/S Gorky Production & shoes Unit,Gorky. The Company is marketing its product nationally and internationally under the brand name LIBERTY and is well established in the national and international market. The company has entered into an agreement with one of the group firms M/S Liberty Enterprises for using the established brand name LIBERTY. The company has commenced its commercial production for non leather shoes on 25th December 1993.Intially one direct injection soiling machine was installed with a capacity of 240000 pairs per annum on single shift basis .The second direct injection soiling machine was installed in March 94.From the commencement of commercial production till 31st March 1994,the company has been operating on full capacity.As the promoters ar in this line for the last five decades the company is confident of maintaining this level of operations in the future.The company has been promoted by P.D.Gupta and R.K.Bansal and belongs to the LIBERTY Group .Liberty Group has completed Five decades of its existence in the shoe industry in 1994.

2000 - The Company is to enter into an agreement for sale/purchase Of goods and/or taking on franchise basis the production on franchise basis the production facilities and/or acquire movable and immovable property including plant and machinery, building etc. with Liberty Group Marketing Division and/or Liberty Enterprises, partnership firms.

The Company is all set to venture into the e-commerce activities which will cater to the B2B and B2C requirements. 2003 -Liberty Footwear has introduced its innovative Liberty Footstylers collection. It is also unveiling a slew of shoes whose price will range between Rs 1,500 and Rs 2,500, higher than its other products such as Gliders, Windsor and Senorita. Pearl Academy inks pact with Liberty Shoes. 2004 -Liberty Shoes Board approves setting up of Subsidiary Company. Mr. Adesh Gupta presently working as Executive Director of the Company since July 16, 2001, has been elevated as 'Chief Executive Officer' (CEO) of the Company. Liberty Shoes Ltd launched its retail format, Revolutions -Liberty Footwear Company Ltd's claim to use brand name 'Revolution' for its new footwear retail chain has been challenged by a Delhi-based women's wear chain Revolution Clothings, which too, has claimed ownership of the same brand name.

2005-Liberty unveils new range of footwear

2006-Liberty Shoes joins hand with Pantaloon


Liberty is planning to launch its new product, this time a different one from its existing one. Liberty has this time come with different marketing plan of launching its first ever bag "LIBAG" for different segments of market. This idea needs an effective and different marketing planning because as it is the product of company to be launched first time. Segmentation, Target market and Positioning analysis has to be effective as there are already big competitors and players in the market of this product like vip, Samsonite, Reebok, etc.


It's the mission of the Liberty Group to continuously improve the quality of its products using cutting-edge technologies and following the latest trends. The group emerged with an enthusiasm to offer world-class products to its countrymen and it will carry forward the same attitude along with the determination to be the global leader


The Group is committed to achieve the highest performance standards in each area of its business. It envisages itself as the most trusted name all over the world.


The objectives of marketing are goals or targets which a marketer tries to reach with the help of strategies and plans. As for as Liberty is concerned , they are successful in the markets by providing value to its customers the main objectives of marketing are as;

  • Effective positioning of the product,
  • Segmentation and targeting on the basis of demand, wants and standards of the customers,
  • Providing value to customers ,
  • Quality products backed by better service,
  • Cost control and reasonable prices,
  • Effective communication channels,
  • Better customer relationship
  • Capture more and more customers.

All the above mentioned objectives are the real cause behind the success of Liberty in the corporate world. They are much concerned with the marketing and marketing team because once your marketing is effective only then you can capture more and more customers, because at the end the number of customers you have captured is the main objective of marketing.


When developing strategies, analysis of the organization and its environment as it is at the moment and how it may develop in the future, is important. The analysis has to be executed at an internal level as well as an external level to identify all opportunities and threats of the external environment as well as the strengths and weaknesses of the organizations.


  • Trends
  • Competition
  • Customer profile
  • Technology

Analysis of the external environment normally focuses on thecustomer. Management should be visionary in formulating customer strategy, and should do so by thinking about market environment shifts, how these could impact customer sets, and whether those customer sets are the ones the company wishes to serve.


The market has under gone a tremendous change since last two decades (Liberalization). The marketing concept has changed from Production concept to Holistic marketing concept and the main reason behind this are the day by day changing trends. The main changes that market has under gone are as;

  • Changes in standard of living
  • Market place has changed in the ways of tastes and preferences
  • Services
  • Increasing competition
  • Changing communication trends
  • Effective distribution
  • Awareness of customers regarding market

Liberty is going to launch its first ever bag in the market and it has to consider all the things mentioned above. The new product which is to be launched should be according to the current trends, according to need and demand of present day with unique qualities and facilities , because a customer of current market has knowledge regarding markets and has innumerable choices.


Competitors are also the main part of industrial analysis. A company has to keep close watch on competitors providing same brand to the customers, what are the changes they are making with the changing customer tastes and preferences This analysis includes;

  • Who are your competitors in the market
  • What are they producing
  • Their brand
  • Their marketing strategies
  • Their customers and relationship with them
  • Their quality, prices and technology
  • Their channels of communication and distribution.

The main competitors of LIbag bags are :

  1. Samsonite
  2. Aristrocat
  3. Vip
  4. Reebok

The maximum market share of this industry are in the hands of Samsonite and VIP, they are the dominant players of luggage industries. Liberty has to deliver the best quality with attractive designs in order to compete their competitor.


  • Strength
    • Strong Retail presence
    • Attractive counters
    • Multiple product category
    • High quality
  • Weakness
    • Need to fill the gap of well informed new product launches.
    • Small market
  • Opportunity
    • First mover advantage as it has new technology and experience in the price range category
    • Has a lager portfolio in order giving high distribution capacity.
  • Threat
    • Low media spends may make the brand weak over period of time resulting to death.
    • Other players
    • Huge no. of substitutes


Liberty has to find out the tastes and preferences of the customers before launching a new product, that is, LIBAG in the market. This process of sensing customers needs is known as Market Research. Thus through market research liberty can discover new oppurtunities.

The next step is product development, R&D people and engineers starts developing the product which the consumer wanted. After the product is developed it is tested with selected group of people for evaluation. Now the product is put under the actual market conditions in a selected geographical area. liberty has to choose proper distribution channels in order to make its product available. The next step is product promotion, liberty has to use various promotions channels to attract customers like price-offs, discounts, etc. Also liberty has to spend heavily on advertising to make the customers aware about the product.


Target market of liberty for its bags(Libag) will be the upper class, middle class .


Marketing mix of any company involves 4P's of the company. These are as given below:

  • Product
  • Price
  • Place
  • Promotion


This is the very first p of the marketing. For knowing about this, we will be studing product description, segmentation for liberty bags and what will be the posioning and product differentiaton.

These all products will be segmented on the basis of the following factors:


  • on the basis of age - 25 to 50 years
  • school childrens- age group between 8-25
  • on the basis of sex - women
  • on the basis of income - higher income group


  • On the basis of social class - upper class
  • On the basis of region - metropolitans and big cities


  • Lifestyle
  • Personality

Product Differentiation:

  • High quality products
  • Reliable and portable
  • Privacy controls
  • Digiatl Locks
  • Attractive Designs and style


The products will be positioned as follow:

  • For elite and upper class
  • High quality products
  • Attractive designs for women(middle and upper class)


This is the second marketing mix and place for the Libag bags is as follows:

Metros: Mumbai, Chennai, Delhi and Kolkata.

Other cities: Pune and Chandigarh

Distribution channel:

A three tier distribution channel will be followed for the products distribution:

  • Manufacturer
  • Distributor
  • Stockiest
  • Retailer


The pricing strategy used by liberty for its Libag bags is based on its competitors. This is because it wants to gain maximum market share. This market penetration strategy will be helpful for LIbag to gain market share. Liberty has different prices for their bags which caters different tastes of different persons. The various prices set by liberty for their Libags are:

  1. For school bags...............350 to 700
  2. For travelling purposes............. 1500 to 3200
  3. For sports----------------1050 to 3100
  4. For women-----------------450 to 2500


The company has made the product for premium market as well as for middle class and also having product which gives equal value to the price which consumer pay for it.

Company also tries to give good product to the customer and make continues change in prize and design which fulfill all the needs of the customer


  • Theatrical part from book Marketing management by Philip Kotler And market plans and help from other companies which make bags

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