INTRODUCTION

American Tourister is a brand of luggage owned by Samsonite.

Sol Koffler founded American Luggage Works in Providence, Rhode Island, USA in
either 1932 or 1933.In 1993, American Tourister was acquired by Astrum
International, which also owns Samsonite.[3] Astrum was renamed the Samsonite
Corporation two years later. Their products include suitcases, backpacks and
wallets.

All started in 1933, when Sol Koffler put his life savings on the line to start a luggage
company in Providence, Rhode Island. His dream was to build a tough suitcase that
could sell for a dollar. He succeeded, and decades of innovation followed… By 1945,
air travel was taking off and lighter luggage was in high demand. So American
Tourister’s Hi-Taper was designed – tapered luggage that was lighter and easier to
pack. The 50’s found the company experimenting with new materials to make the
world’s first molded luggage. The distinctive modern design could really take a
beating. The concept has since been copied, but never equaled. As international
travel soared in the 60’s, American Tourister was the first company to “flight test”
their bags with flight attendants from major airlines.
It was this research and insight that brought about more innovations – like the
springless, cam-action lock that wouldn’t jam. In the 80’s and 90’s, the company
continued to design hardside products, while also responding to the shift in demand
for softside – durable cases that could withstand even the toughest quality critic, a
gorilla.
American Tourister…is a brand of Samsonite Corporations.
 4PS

PRODUCT - American Tourister tests its products, fully loaded, in real-world

conditions for durability, strength, and dependability.

HANDLE TEST – 3500 TIMES

1 Tested by giving jerks to the handle for 3500 times in a loaded
condition.

WHEEL TEST – 32 KMs

2 Wheel is been carried for 32 km in a loaded condition to check
the wear and tear for wheels.

THE DROP TEST – AT 0.9m, -12 DEGREE C.

3 Dropping the bag 5 times on the ground at all corners and

sides at atmospheric temperature and deep freezing
temperature from 0.9m.

THE ZIPPER TEST – 15000 times – FORCE APPLIED TO

SLIDERS & ZIPPERS
4
Force is applied to sliders and zippers to test the strength of
zippers and pullers

THE TUMBLE TEST – 50 REVOLUTIONS & OBSTACLES

5 This test is been carried by tumbling the bag in a tumbler at 50
cycles in a loaded condition.

THE LOCK TEST – PUSH & RELEASE CYCLES

6
We check the locks durability by operating the lock for 15000
 cycles in one go continuously.

PRICE - As per the Quality of the product it is provided at the Best and the lowest
price .

Reasonable price of the product is the main motto the Company.

1. . After a survey between the buyer and the seller ,reflecting judgement by the
economics realities of the marketplace and the relative bargaining power of the
parties the prices are decided

2. Generally it is high enough to cover the company’s cost and a reasonable

margin,but not high enough for the seller

3. Price that provides the best total value comprising of availability , delivery time,
fitness for purpose , payment terms , quality , quantity , and after sale services .

PLACE – Place plays a fundamental role in sailing the product. American Tourister
has large number of costumer all over the World . They have their network widely
spread.

Americas

· Canada

· USA
· México
Europe& Africa

· Österreich (Austria)

België | Belgique (Belgium)

Danmark (Denmark)

Deutschland (Germany)

España (Spain)

Finland

France

Hungary

Italia (Italy)

Luxembourg (Luxemburg)

Nederland (Netherlands)

Norway

Poland

Portugal

Schweiz | Suisse | Svizzera (Switzerland)

· South Africa

Sverige (Sweden)

· Turkey

United Kingdom
Asia& Pacific

· Australia

· India

· Indonesia
· Malaysia

· Russia

· Singapore

PROMOTION – It plays a very important role in sailing the product .as they
have customers all over the world promotion of the product is also necessary
Promotional methods may include:
website
social media

blogging

e-newsletters

networking

brochures and flyers

TV, radio or print advertising

loyalty and reward programs

mail-outs and letter drops

sponsorship

PR activities such as media releases and events

SELLING STATERGY
American Tourister is a well-known brand of suitcase.

Immigrant Sol Koffler founded American Luggage Works in Providence, Rhode

Island in either 1932[1] or 1933[2] with his life savings. He was determined to
produce luggage priced at $1 in the midst of the Great Depression.[2] The
company's breakthrough came soon after when Koffler devised a new line that
was significantly better than that of the competition; he named it American
Tourister.[2]

In 1970, American Tourister launched a memorable ad campaign, highlighting

the durability of its product by unleashing a "gorilla" (actually a man in a
costume)[3] on it. The commercial ran for fifteen years.[3] It was also shown
briefly in the 1995 movie, Apollo 13.[citation needed]

In 1993, American Tourister was acquired by Astrum International, which also

made Samsonite luggage.[4] Astrum was renamed the Samsonite Corporation
two years later.[5]

American Tourister has now become a lower-end version of its Samsonite

sister brand.

DISTRIBUTION CHANNEL

Distribution Channel All over the World

Sales channel Shares (%)
Army Canteen 30-40%
Luggage Shop 60%
Department Stores 41%
Luggage Shop 21%
E-Commerce website 16%
Variety Stores 15%
Catalogue Stores 8%
Mail Order 2%
Other 5%
 MOTIVATING THE CHANNEL MEMBER

 Motivating the channel members means: taking such action that foster
channel member cooperation in implementing the manufacturer’s distribution
objectives beyond compliance active representation of product

 American tourister now a days view its intermediaries in the same way it
views its Costumer

 To be able to stimulate channel members to top performance,it is necessary

to understand their needs and want and for this purpose it is necessary to
motivate the channel members

Marketing Strategy of American Tourister - December 10th, 2010

American Tourister is a well known brand of suitcase.

Immigrant Sol Koffler founded American Luggage Works in Providence, Rhode

Island in either 1932[1] or 1933[2] with his life savings. He was determined to
produce luggage priced at $1 in the midst of the Great Depression.[2] The
company's breakthrough came soon after when Koffler devised a new line that was
significantly better than that of the competition; he named it American Tourister.[2]

In 1970, American Tourister launched a memorable ad campaign, highlighting the

durability of its product by unleashing a "gorilla" (actually a man in a costume)[3] on
it. The commercial ran for fifteen years.[3] It was also shown briefly in the 1995
movie, Apollo 13.[citation needed]

In 1993, American Tourister was acquired by Astrum International, which also made
Samsonite luggage.[4] Astrum was renamed the Samsonite Corporation two years
later.[5]

American Tourister has now become a lower-end version of its Samsonite sister
brand.
Statistics:
Wholly Owned Subsidiary of Samsonite Corp.
Incorporated: 1933 as American Luggage Works
Employees: 1,000
Sales: $140 million (1993 est.)
SICs: 3161 Luggage

Company History:

American Tourister, Inc., is one of the oldest and best-known luggage brands in the
United States. Its commitment to selling durable and affordable luggage, which
began with the company's founding in the 1930s, continued into the 1990s. Despite
several changes in parent companies in the 1970s, 1980s, and 1990s, American
Tourister retained its brand recognition with the public, particularly through its
association with luggage-abusing gorillas featured in its famous advertising
campaign.

Sol Koffler, founder of American Tourister, was introduced to the luggage industry in
the 1920s. A recent immigrant to the United States, Koffler worked in a plant that
manufactured steamer trunks and in a pocketbook factory. The methods of luggage
construction that Koffler learned were typical of the industry; thin strips of wood and
plywood were glued together and then covered with either paper or cloth for
inexpensive luggage or with leather for expensive luggage. Koffler set out on his
own, determined to produce a more durable product.

Early History

In 1933 Koffler founded American Luggage Works by opening a shop in a vacant

grocery store in Providence, Rhode Island. Although his first luggage did not
revolutionize luggage design, Koffler was sure he had created a significantly more
durable product than any competitor's in the same price range. The suitcase sold for
one dollar, and, in the first year of operation, American Luggage Works sold 5,000
suitcases. As the company's only employee, Koffler handled all aspects of the
business himself that year. Within two years, Koffler had hired several employees,
although he himself continued to handle the luggage design and the company's
sales. The company's product line had expanded to include two sizes, which sold for
two and three dollars. Each size was produced in two colors, black or brown.
Retailers throughout the Providence-Boston area carried the line.

The company's major breakthrough came soon after its founding. Koffler adapted
machinery used to make plywood radio cases so that it would bend materials to
make his luggage. The new equipment enabled him to simplify suitcase design
significantly and still increase its durability. Typical luggage of the time was
constructed of numerous pieces, making a squat and unwieldy suitcase that tended
to split and crack. Koffler's new design was slim and round-cornered but still
provided more room than other suitcases did. Other new features, such as linings
and zippered pockets, enhanced the product's appeal. To distinguish this line from
the previous ones, Koffler named it American Tourister.
The new line was a resounding success and set a new standard for the industry.
American Luggage Works grew rapidly as a result; by the beginning of World War II
the company enjoyed revenues of more than $100,000. The company's product line
had expanded as well, with four colors, four styles, and eight sizes being offered by
the early 1940s. The war diverted the company's attention from luggage, however,
as it helped with the war effort. At the war's conclusion, American Luggage Works
reentered the luggage industry poised to become a national concern.

In 1945, despite its rapid growth in the previous decade, American Luggage Works
remained a regional firm. Aiming for sales across the United States, Koffler decided
to spread awareness of the American Tourister brand. He apportioned $12,000 for a
national advertising campaign, the first ever undertaken on behalf of the company.
An amount unusually large for the time, that first national advertising budget set the
stage for the company's continued commitment to large-scale advertising in future
years.

Pioneering New Materials

Innovation helped propel the company forward during the next two decades. The first
luggage manufacturer to make an all-vinyl case, American Luggage Works went on
to produce the industry's sleekest and smoothest cases from molded plywood
veneer. The year that particular line was introduced, the company records that it sold
its entire year's production of leather and vinyl cases in the first two hours of that
year's national trade show. One of the first to see the benefits of a revolutionary new
material developed during the war, Koffler made sure American Luggage Works
introduced molded plastic luggage before anyone else did. Koffler met Don Hawley
of Hawley Products at that same trade show and discussed the aqueous plastic
material Hawley had first produced for use in shell casings and pith helmets during
the war. Koffler recognized that the composition's lightness, malleability, and tensile
strength made it a prime material for luggage production. Despite the company's
success with its current products and the need to retool production completely to use
the new material, Koffler wholeheartedly entered into the new venture, even
mortgaging his house to help finance it.

Once again the new line of American Tourister hard-sided luggage introduced a new
standard of durability and economy to the luggage industry. Customers immediately
responded well to the product. The company improved the chemical composition
further in 1954, resulting in a case that was virtually indestructible. When the
company started to receive reports of American Tourister luggage surviving
incredible accidents, Koffler used them in advertisements to promote the luggage's
durability. One true-life account reported that an American Tourister suitcase fell off
a car traveling 60 miles per hour and was run over by another car. Other than a few
scuff marks on the outer surface, the case was undamaged.

Testimonials and Gorilla Advertisements

These true-life accounts inspired the company's famous gorilla advertisements.

Doyle Dane Bernbach agency created an award-winning print and television
campaign that combined customer testimonials with photos or film of a ferocious-
looking gorilla hurling and stomping on an American Tourister case in a zoo cage.
Other advertisements demonstrated the luggage's durability even in unlikely luggage
mishaps, such as a case being dropped from an airplane or a speeding train.

American Tourister continued to grow. By the 1970s, the company was one of the
most popular manufacturers of mid-priced luggage in the United States. A general
industry upswing in the 1970s helped the firm rise to a new peak in sales. Luggage
owners replaced cases at a more rapid rate and leisure travel in general was on the
rise. These trends and the company's entrance into the growing market for business
cases helped the company achieve record sales. In 1978 Koffler, who had remained
involved in the operation of the business, sold his company to Hillenbrand Industries.
A furniture manufacturer based in Indiana, Hillenbrand was attempting to expand
and diversify by purchasing healthy market leaders.

American Tourister's first year as a Hillenbrand subsidiary marked a peak for the
company. Sales in 1978 reached a record $83.8 million and operating profits
amounted to a substantial $16.2 million. These figures may have simply reflected the
market in general, however; Industry Week reported that the luggage industry was
"enjoying a banner year." When the economy turned sour in 1980, American
Tourister sales declined 7 percent and operating profits more than followed suit,
dropping 60 percent in that year alone. The company tried to rally for its 50th
anniversary in 1983, investing in prime time television commercials and print ads in
such mainstream magazines as Reader's Digest, Better Homes and Gardens, and
People. But the company was unable to regain the steady growth it had experienced
throughout its history.

Sold to Astrum International in the Early 1990s

Luggage sales did not revive, and in 1992 Hillenbrand announced a $5 million
operating loss for its durables segment, which comprised a security-lock
manufacturer and American Tourister. The next year Hillenbrand sold American
Tourister to Astrum International Corp., a sales and manufacturing holding company,
for a reported $68 million. Astrum, formerly known as E-II Holdings Inc., had recently
emerged from bankruptcy reorganization, which led to some speculation about the
future of American Tourister.

Another factor influencing American Tourister's direction was Astrum's ownership of

Samsonite Corp., a major competitor of American Tourister. Although at the time of
the purchase Astrum said it would run American Tourister as a unit separate from
Samsonite, it clearly planned some connection between the two. In 1994, Astrum
named as president of American Tourister the former Samsonite vice-president of
sales and marketing, Frank Steed. In a press release announcing this appointment,
Astrum said, "With Steed at the helm ... the two companies can establish product
plans, marketing and advertising programs that will enhance both the American
Tourister and Samsonite brand names. The combination of Samsonite's vast global
resources and American Tourister's quality products will insure success as American
Tourister enters the international marketplace, while enhancing the value of its name
here in the United States."

In an attempt to distinguish American Tourister from Samsonite, Astrum initiated a

major advertising campaign in early 1994. Capitalizing on the well-known gorilla ads
from a decade before, the campaign featured a gorilla, a family of chimpanzees, and
an orangutan. The ads targeted family vacationers, a market clearly different from
the business-oriented one pursued by Samsonite. The print ads ran in issues of
Parenting, Family Circle, and Ladies Home Journal and used the tagline, "American
Tourister: Making travel less primitive."

Spun Off as Subsidiary of Samsonite

In 1995 Astrum split into two public companies, Samsonite Corp. and Culligan Water
Technologies Inc., with Samsonite taking Astrum's other luggage brands, Lark and
American Tourister, with it. The split was designed to take advantage of the name
recognition of Astrum's two largest brands. "Astrum. What's an Astrum?" the
company's chief executive officer, Steven Green, said to The Denver Post in April
1995 when trying to explain the market confusion over Astrum's business focus.
Green stayed on as chairman at Samsonite.

Although Samsonite was the world's largest luggage manufacturer and distributor in
the early 1990s, Green saw much room for growth for it and its subsidiaries,
especially overseas. In particular, he cited India and China as ripe for expansion. He
also began moving the brands into new products, such as computer and camera
cases, car-top carriers, and motorcycle saddlebags. These products required
distribution channels that were unfamiliar to Samsonite and American Tourister,
however, who relied mainly on luggage stores and luggage departments of mass
merchandisers and department stores to sell their goods. Therefore, the focus was
likely to remain on the businesses' traditional luggage market.

In February of 1996 Samsonite announced that it would be closing American

Tourister facilities in Warren, Rhode Island and Jacksonville, Florida, resulting in the
loss of 137 jobs. Hard-luggage production and important central office functions
would b
 American Tourister SWOT Analysis

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of American
Tourister Company. Strengths are:
1.Strong brand name and good financial position of American Tourister
2.Globally acclaimed and recognised brand
3.American Tourister is considered one of the safest mode of spending while travelling
Strengths
4.The company is known for ease of use and is best known for its credit card, charge card, and
traveler's cheque businesses
5.Over 60,000 employees work with the company
6.Loyalty programs for customers have boosted the business
7.Strong branding and advertising of American Express through TVCs, online, print media etc

Here are the weaknesses in the American Tourister SWOT Analysis:

Weaknesses 1.Decline in Traveller’s cheque usage can affect the American Tourister's business
2.Lacking in debit card services at the point-of-sale

Following are the Opportunities in American Tourister SWOT Analysis:

1.Expansion in other countries can be a huge opportunity for American Tourister
Opportunities
2.Diversifying portfolios for existing customers
3.Innovative schemes for easier usage and venturing into online payments

The threats in the SWOT Analysis of American Tourister are as mentioned:

1.Changing govt regulations and financial crisis like recessions can affect American Tourister
Threats adversely
2.Uncertainity in interchange fee
3.Fierce competition with other companies can reduce American Tourister's business.
Conclusion

It is the leading luggage manufacturer and retailer, who acquired in 1993 by

Samsonite Corp. It can be a smart choice for you. The campaigns of the brand
always try to target urban and metro audiences. The American Tourister brand will
always be known in the industry for its unique blend of toughness and international
class.

The bags and backpacks of the brand can flawlessly reflect the personality and style
of the user and ensure a head-turning effect. The quality and campaign of American
Tourister have given it a new image and level.

American Tourister ensures your travels to meet with confidence. The brand always
manufactures the product by keeping in mind that how you can travel with
confidence and comfort. American Tourister is the smart choice one can ever have.
It provides spacious, good quality and comfortable bags and backpacks which can
go with you for a long time.
 CONCLUSION

From this study it can be concluded that the customer relationship management in American
tourister is satisfactory. The company is using various CRM practices like customization of
the product, maintaining interaction with the customers regularly and providing good quality
product etc. Customer relationship management has a certain impact on the profitability of
the company . Average sale per customer has increased 15% over the last two years.
Customer response rate towards marketing activities is also improving. There are various
factors affecting the customer relationship management like working environment of the
company, support from top management and coordination among the departments of the
company. Information technology is not used as much as it should be. The company is using
traditional tools of CRM like quantitative research, personal interaction. The company should
use modern tools like data mining, contact center, e-CRM and web based survey tools.