Luggage Becomes A Lifestyle Statement: Case Study

LUGGAGE BECOMES A
LIFESTYLE STATEMENT
CASE STUDY
SAMSONITE
INTERNATIONAL
SAMSONITE
INTERNATIONAL
 Started in 1910 as Shwayder trunk manufacturing Company.
 In 1960 changed to Samsonite.
 One of the world’s largest and most recognized designer
and distributors in luggage industry.
 High quality products integrating style, functioning, and
innovative design.
 2300 outlets in more than 100 countries.
 3 manufacturing units- Nashik, Italy and China.
 Target market was small and affluent group.
 Launched in India by Dr. Ramesh Tainwala who is currently
associated as President- South Asia Group- Samsonite.
 Registered office is in Luxembourg.
 Innovation
 Effective distribution channel through hyper market.
 Targeting different consumers by different brands BRAND
 Productive diversification
 Expansion
STRATEGY
 Samsonite is pursuing several strategic initiatives designed to capitalise on
our underlying business strengths, grow and diversify our revenue stream,
improve our profitability and our cash flow generation and enhance the
resiliency of our business. Key elements of our business development
BUSINESS 
strategies include:
Introducing a stream of innovative and contemporary products into
the market.
STRATEGY  Strengthening support behind our brand and product marketing
and advertising expanding our retail distribution platform.
 Pursuing expansion opportunities in high-growth geographic markets.
 Exploiting new business opportunities.
 Continuing to improve operating efficiencies and cash flow generation.
MARKET SEGMENTATION
Market segmentation is the process of dividing

a market of potential customers into groups, or
segments, based on different characteristics. The
segments created are composed of consumers who
will respond similarly to marketing strategies and
who share traits such as similar interests, needs, or
locations.
MARKET SEGMENTATION- SAMSONITE
How big is the luggage market in India?

The total luggage market in India is estimated to be around Rs
6,000 crore – of which 50 per cent is organised.
What are the factors propelling the industry growth?
An increase in disposable income naturally leads to a larger
tendency to travel for leisure, holidays and various other reasons.
Also, we see consumers travelling more today, for specific
occasions within family, business or even with friends. Both these
factors are key responsible in the industry growth.
For Samsonite, they primarily target the prestige end of the
market – which is mainly the business traveller, affluent families
that travel for holidays regularly. For this set of customer, their
product pricing is always over Rs 10,000.
Samsonite has four divisions located in Asia, Europe, North America, and Latin America. All of the four
divisions are independent in designing and marketing their markets as each division has its own unique
demands and requirements observed for the customers. Samsonite is known for its reliability and
innovation; normally polypropylene sheets are used with lamination that makes the products i.e.
luggage and suitcases tough as well as a lightweight (Macquarie Research, 2014). Samsonite has
successfully built factories in Europe and India that outsource the products to other countries. The
company advertises heavily to improve the brand image in all regions. A period of four years
back, Samsonite business only focused on travel luggage and the products were distributed only
through wholesale channel. Today, Samsonite is selling the following brands Samsonite,
American Tourister, Hartman, High Sierra and recently purchased brand Li Pault. Samsonite is selling its
products through several distribution channels, company-owned retail outlets, e-commerce, special
luggage stores, departmental stores and mass merchants. Samsonite is now available in 100 countries.
CURRENT POSITION OF SAMSONITE

STRENGTH
 Variety of products
 Product’s quality
 Intelligent and practical design
 Convenience of finding and buying
WEAKNESS
 High cost
SWOT  Less advertisement
ANALYSIS OPPORTUNITIES
 Increase in disposable income of rural and middle class
 Growing demand
 Global market
THREAT
 Stiff competition from local players
 Presence of other strong brands
 Irregular demand
VIP
 VIP Industries Limited was incorporated in 1968. The first VIP suitcase was manufactured in 1971. Since
then VIP industries has sold over 60 million pieces of luggage worldwide.
 VIP industries is the largest luggage brand in INDIA & ASIA. It is 2ndlargest luggage brand, globally.
 It has got more than 8000 retail outlets across INDIA and over 1300 retailers across 27 countries.
 Is the parent company of renowned brands like VIP, Sky Bags, Alfa, Aristocrat, Footloose, Carlton
and Caprese.
VIP
“To be the global leaders in the travel production business. To manufacture
and provide travel utilities which are of high eminence, innovative and unique
VISION and enlighten our consumers to the joys of travelling”
 STRENGTH
 Asia’s largest and world’s 2ndlargest luggage brand
 Huge consumer base
 Caters to all section of society
 Diversified product range
 Efficient manufacturing facilities
 WEAKNESS
 Failure to anticipate opportunity in certain product categories and is hence a late
entrant
SWOT ANALYSIS  Not leveraging upon e-commerce boom
 OPPORTUNITY
 Digitally enabled security system
 Built in power bank
 Penetrating rural markets using ALFA pricing points.
 Expanding Global market
 THREAT
 Competition from unorganized markets and local players
 Entrance of international bags in the premium segment
MARKET SEGMENTATION- VIP
The basic strategy the brand has been working on is bringing innovations
and presenting it to the mass market. Over the past three years, they have
democratised the four-wheeler luggage market in India.
How are the four brands in the portfolio positioned differently?
All the five brands are standalone brands and not a subset of VIP.
They have the premium international brand from England - Carlton. It is a
distinct product which is designed for the European market. With this
brand they are targeting the premium end of the market.
VIP is in the middle of the market. This is in the mass premium segment as
well as in the popular market. It is a leadership brand and has the largest
market share. It brings breakthrough innovations for the benefit of Indian
consumers.
Skybags is the stylish offering. Luggage is not seen as a stylish product.
People spend a lot on watches, clothes, mobile phones and other
accessories but are not bothered about the kind of luggage they are
carrying. Skybags’ agenda is to increase the style quotient of consumers. It
has printed and coloured bags. The Indian consumer has taken to this style
and the bold design.
Aristocrat is their ‘value for money’ product. People have bought it as it is a
big brand with strong equity.
To counter the threat of Samsonite,VIP
launched Elanza and Caprese range of
premium luggage.
HOW DID VIP
HANDLE Elanza made available through select dealers
only, in order to maintain its premium image.
SAMSONITE
VIP set the price so high to
prempt Samsonite’s entry in the super-
premium segment of the market.
CONCLUSION

Luggage Becomes A Lifestyle Statement: Case Study

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LUGGAGE BECOMES A

Market segmentation is the process of dividing

How big is the luggage market in India?

CURRENT POSITION OF SAMSONITE

SWOT ANALYSIS  Not leveraging upon e-commerce boom

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