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TEAM PROBUS
- Sawedana Shirsat - Sukesh Chandra Gain
AGENDA
INDIAN LUGGAGE MARKET
CUSTOMER SEGMENTATION
CUSTOMER PROFILING
NEED GAP ANALYSIS
STRATEGIES-BASED ON CDM
STRATEGIES-BASED ON VALUE PROFILING
CONCLUSION
 US$916 million in retail
sales value in 2010
 US$1,874 million in 2015
 15.4 % CAGR between
2010 and 2015
Travel bag segment :16.0 %
CAGR (2010 to 2015 )
Soft Luggage trends :20-
30%
 Hard luggage: Negative
growth rate of approx 10%
MARKETSTATISCTICS
S W
O T
SAMSONITE
Internal Factors
External Factors
Positive
Negative
cvv
S W
O T
V.I.P.
Internal Factors
External Factors
Positive
Negative
 Shift in preference to soft and light
weight luggage
 Increase use of travel accessories
Assistance provided by
manufacturers to the franchisee
Shift away from low-quality
products
Efficient compartmentalization &
safety features
 Luggage manufacturer adding new
product categories
TRENDS
Source: http://www.pressreleasepoint.com/india-tourism-surges-ahead-740-million-domestic-tourists
INDIAN LUGGAGE MARKET
PREMIUM CUSTOMER PROFILE
Business
Traveller
Style
Security
Comfort
Customization
Family
Traveller
Luggage space
Durability
Adventure
seeker
Weight
Durability
Multipurpose
Comfort
Student
Weight
Design
CUSTOMER SEGMENTATION
Lowprice
Highprice
Old design
Samsonite
Carlton
Red label
Black label
VIP
Tommy
Hilfiger
Delsey
AT
Giordano
PERCEPTIONMAPCONSUMERFEEDBACK
OLD NEW
Quality was most important Quality, design, style, comfort
Luggage was more of a
commodity.
Luggage is a status symbol
Mostly domestic travel (740
million domestic visits-2010)
Domestic and international travel
(outbound 9.8 million - 2007 )
Value for money Ready to spend more for comfort
and quality services
Occasion based purchase Lifestyle, attitude, beliefs and
occasions influence premium choice
Product oriented Experience oriented
CHANGING CONSUMER BEHAVIOUR
Source: Market Research, Online forum, Consumer review sites
UNDERSTANDING CONSUMER PROFILE
0
1
2
3
4
5
Durability
Price
DesignEmpathy
Weight
Black
Label
Red
Label
Tommy
Delsey
Samsoni
te
Modern Design
BT-Business
Travellers
FM-Family-
Leisure
Travellers
Design
Durability
BT
BTBT
FM
FM FM
Value for Money
Design
Value for MoneyDurability/Comfort
ST
ST
ST
BT
BT
BT
FM
FM
FM
AT
AT
AT
BT-Business
Travellers
FM-Family-
Leisure
Travellers
AT-Adventure
Travellers
ST-Students
NEED GAP ANALYSIS
Need Gap Analysis
Customer Insights Corresponding values
“I like to be different” Customization, individuality
“Need to make the best out
of my time”
Less time for shopping,
personal efficiency
“Make time for physical &
mental fitness in my busy
schedule; maybe vacation in
a year”
Vitality
“I feel proud when people
look up to me, emulate me;
my image among peers
matters..”
Aspirational
“Need for successful
experience, reliability”
Proven time and again
“ I can buy any premium
brand”
Less
awareness/visibility/brand
recall
 TG needs customized proven product,
has less time for shopping, has
aspirational values and is less aware of
Samsonite
 Should focus on value based brand
management (with values of the
people who buy) in each step of
consumer buying process; give them
reason to believe in Samsonite based
on their values
 Use the above values to position
products and diversify into other
product categories
IMPLICATIONS
GOAL MAPPING TO CDM ACTION PLAN/IMPLEMENTATION
Brand Connect Low Involvement High Involvement
(By involving the consumer to what one is
interested to see / feel / aspires to be)
Idea: Peripheral route of persuation
Show Samsonite as a status symbol via life of a Premium Consumer as
carrying a ‘lifestyle’ brand with message:“I am a Samsoniter. Are you?”
•Connection is established through peripheral route
•Premium customers to feel proud owning a Samsonite brand. Mid
price to aspire to own a Samsonite
• Stimulates emulation and aspirational space in mind
Visibility
(Use touch points of Premium consumers
for communication )
Communication through :
• Digital promotion on LinkedIn
• Sponsoring business conferences (CII / B School alum meets)
• New Delhi Airport Metro Link (Delhi)
• Sponsoring any Travel Programme on TV consistent with current
message of “Stepping out”.
Samsonite compliments your travel through a wide product portfolio :
Increase Visibility, Association of Brand with Premium Travel,
Awareness of Product Portfolio , Brand Recall, High on relevance
• Collaborate with Airline
Visibility
(Brand evaluation is done by the consumer
on different criteria such as: Durability,
Design, Availability, Comfort, Quality, After
Sales Service)
Collaborate with Airline
Show Points of difference (exclusive features of Samsonite)
Samsonite scores higher in evaluation
Induce Trials
Discount Coupons or exchange offer coupons in Travel Magazines /
High end Business Magazines (Forbes)
A reason for mid segment to upgrade themselves to premium
Repeat Purchase
Increasing Customer
Base in existing
Category
• Samsonite Membership Card: Obtained only after purchase above a
certain value. Position as an aspirational product.
• Existing members get exclusive offers and can be shared with
family/friends
• New customers get discounts on purchase of Samsonite
Evaluation Criteria
Problem / Need RecognitionOPPORTUNITY 1
Information SearchOPPORTUNITY 2
Intention to buy
OPPORTUNITY 3
Decision to buy
Post Purchase Decision
OPPORTUNITY 4
Consumer enters Waits at Check In Counter
Airline check in System (MOTs)
STRATEGIES BASED ON CUSTOMER DECISION MODEL
STRATEGIES BASED ON CUSTOMER VALUE PROFILE(1/2)
PREMIUM CUSTOMER PROFILE
Business
Traveller
Style
Security
Comfort
Customization
Family
Traveller
Luggage space
Durability
Adventure
seeker
Weight
Durability
Multipurpose
Comfort
Student
Weight
Design
Samsonite does
not have any
products to cater
to this category
of customers
EXPAND INTO HIKING CATEGORYOPPORTUNITY AREA 5:
What
Samso-
nite
can
OFFER?
Offer Products for Hiking
Lightweight:
• Sleeping Bag
• Backpack (especially
designed)
• Tent
• Hiking boots
• Other travel accessories
CONSUMER
• Love to explore nature
• Affluent and well Educated
• Age group: 18-24 yrs(Mostly
Post Graduates ), 35-44 yrs
(with Families)
• Mostly from Metropolitan
Cities
• 60% of travellers are
foreigners
• Target mainly locations like
Himalayas and Gangotri
• Bargaining power of
consumers: High since local
players present with
products of low prices
POTENTIAL
• Market size : 100 – 150 Crores
• Rapidly expanding market: 15%
growth rate
• Increasing number of adventurous
youth (in India); Business travellers
love going for year end vacation
• Fragmented Market
• Only one major player(Wildcraft)
• Category in nascent stage
• Low Investment
COMPETITIVE RIVALRY
Mild Rivalry
• Market Leader:
Wildcraft
• Other Local Players
• Equipment imported
from Nepal and China
Source: www.onecaribbean.org, Indian Mounterring Foundation, The Indian Backpacker
STRATEGIES BASED ON CUSTOMER VALUE PROFILE (2/2)
SECURITY
Bags with RFID technique
Customer informs about baggage loss on website  bag
easily tracked via RFID
CUSTOMI
ZATION
Customized Women Laptop Bags
Color
Tapered Shape
COMFORT
Bags with health implications
With handles which reduce pressure
Back packs which adjust according to shape of spinal
chord
INTRODUCTION OF PRODUCTS WITH BETTER FEATURES
OPPORTUNITY AREA 6:
NEW DISTRIBUTION CHANNEL
OPPORTUNITY AREA 7:
CORPORATE OFFICE
Collaborate with Corporate Office
• Use the already established in-house stores in
offices
• Offer business travellers luggage and accessories
portfolio on discount
• Focus on Premiere Companies which involve lot of
travel. For eg. Consulting firms (BCG, McKinsey..)
Directly connect to our TG
Easy availability of products
Increase in visibility
TG: Premium Male Professional who don’t have much
time to shop
PREMIUM CUSTOMER PROFILE
Business
Traveller
Style
Security
Comfort
Customization
Family
Traveller
Luggage
space
Durability
Adventure
seeker
Weight
Durability
Multipurpose
Comfort
Student
Weight
Design
Samsonite
can introduce
new features
to cater to
this need
CONCLUSIONUNDERSTANDINGEFFECTOF
MARKETINGCHANNELSON
CUSTOMERS BUSINESS TRAVELLERS, ADVENTURE SEEKERS, STUDENTS, FAMILY TRAVELLERS
Membership Cards Collaboration with airports / airlines Coupons in premium magazines
BUSINESS TRAVELLERS
Social Media promotion (LinkedIn)
Sponsorship of business confederations, B
school alum meets, shows on travel channels
Collaboration with corporates (in house
stores)
STUDENTS
Airport Metro Link
• Sponsorship with
business events/ B-school
alum meets
• Digital promotion on
LinkedIn
• Promotion at Airport
Metro Link
• Discount/exchange
coupons in Magazines
• In house stores in
corporates
• Enter hiking category
SHORT TERM
•Collaboration with
Airline/Airports
• Enhancement of
products by introducing
new features (women
laptop, RFID security
technique, health
implications)
• Samsonite Membership
Card
• Sponsorship of travel
show
MEDIUMTERM LONG TERM
Thank you

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Strategy to grow premium Travel Grear Category _Samsonite_HUL_LIME Competition

  • 1. TEAM PROBUS - Sawedana Shirsat - Sukesh Chandra Gain
  • 2. AGENDA INDIAN LUGGAGE MARKET CUSTOMER SEGMENTATION CUSTOMER PROFILING NEED GAP ANALYSIS STRATEGIES-BASED ON CDM STRATEGIES-BASED ON VALUE PROFILING CONCLUSION
  • 3.  US$916 million in retail sales value in 2010  US$1,874 million in 2015  15.4 % CAGR between 2010 and 2015 Travel bag segment :16.0 % CAGR (2010 to 2015 ) Soft Luggage trends :20- 30%  Hard luggage: Negative growth rate of approx 10% MARKETSTATISCTICS S W O T SAMSONITE Internal Factors External Factors Positive Negative cvv S W O T V.I.P. Internal Factors External Factors Positive Negative  Shift in preference to soft and light weight luggage  Increase use of travel accessories Assistance provided by manufacturers to the franchisee Shift away from low-quality products Efficient compartmentalization & safety features  Luggage manufacturer adding new product categories TRENDS Source: http://www.pressreleasepoint.com/india-tourism-surges-ahead-740-million-domestic-tourists INDIAN LUGGAGE MARKET
  • 4. PREMIUM CUSTOMER PROFILE Business Traveller Style Security Comfort Customization Family Traveller Luggage space Durability Adventure seeker Weight Durability Multipurpose Comfort Student Weight Design CUSTOMER SEGMENTATION
  • 5. Lowprice Highprice Old design Samsonite Carlton Red label Black label VIP Tommy Hilfiger Delsey AT Giordano PERCEPTIONMAPCONSUMERFEEDBACK OLD NEW Quality was most important Quality, design, style, comfort Luggage was more of a commodity. Luggage is a status symbol Mostly domestic travel (740 million domestic visits-2010) Domestic and international travel (outbound 9.8 million - 2007 ) Value for money Ready to spend more for comfort and quality services Occasion based purchase Lifestyle, attitude, beliefs and occasions influence premium choice Product oriented Experience oriented CHANGING CONSUMER BEHAVIOUR Source: Market Research, Online forum, Consumer review sites UNDERSTANDING CONSUMER PROFILE 0 1 2 3 4 5 Durability Price DesignEmpathy Weight Black Label Red Label Tommy Delsey Samsoni te Modern Design BT-Business Travellers FM-Family- Leisure Travellers Design Durability BT BTBT FM FM FM Value for Money Design Value for MoneyDurability/Comfort ST ST ST BT BT BT FM FM FM AT AT AT BT-Business Travellers FM-Family- Leisure Travellers AT-Adventure Travellers ST-Students
  • 6. NEED GAP ANALYSIS Need Gap Analysis Customer Insights Corresponding values “I like to be different” Customization, individuality “Need to make the best out of my time” Less time for shopping, personal efficiency “Make time for physical & mental fitness in my busy schedule; maybe vacation in a year” Vitality “I feel proud when people look up to me, emulate me; my image among peers matters..” Aspirational “Need for successful experience, reliability” Proven time and again “ I can buy any premium brand” Less awareness/visibility/brand recall  TG needs customized proven product, has less time for shopping, has aspirational values and is less aware of Samsonite  Should focus on value based brand management (with values of the people who buy) in each step of consumer buying process; give them reason to believe in Samsonite based on their values  Use the above values to position products and diversify into other product categories IMPLICATIONS
  • 7. GOAL MAPPING TO CDM ACTION PLAN/IMPLEMENTATION Brand Connect Low Involvement High Involvement (By involving the consumer to what one is interested to see / feel / aspires to be) Idea: Peripheral route of persuation Show Samsonite as a status symbol via life of a Premium Consumer as carrying a ‘lifestyle’ brand with message:“I am a Samsoniter. Are you?” •Connection is established through peripheral route •Premium customers to feel proud owning a Samsonite brand. Mid price to aspire to own a Samsonite • Stimulates emulation and aspirational space in mind Visibility (Use touch points of Premium consumers for communication ) Communication through : • Digital promotion on LinkedIn • Sponsoring business conferences (CII / B School alum meets) • New Delhi Airport Metro Link (Delhi) • Sponsoring any Travel Programme on TV consistent with current message of “Stepping out”. Samsonite compliments your travel through a wide product portfolio : Increase Visibility, Association of Brand with Premium Travel, Awareness of Product Portfolio , Brand Recall, High on relevance • Collaborate with Airline Visibility (Brand evaluation is done by the consumer on different criteria such as: Durability, Design, Availability, Comfort, Quality, After Sales Service) Collaborate with Airline Show Points of difference (exclusive features of Samsonite) Samsonite scores higher in evaluation Induce Trials Discount Coupons or exchange offer coupons in Travel Magazines / High end Business Magazines (Forbes) A reason for mid segment to upgrade themselves to premium Repeat Purchase Increasing Customer Base in existing Category • Samsonite Membership Card: Obtained only after purchase above a certain value. Position as an aspirational product. • Existing members get exclusive offers and can be shared with family/friends • New customers get discounts on purchase of Samsonite Evaluation Criteria Problem / Need RecognitionOPPORTUNITY 1 Information SearchOPPORTUNITY 2 Intention to buy OPPORTUNITY 3 Decision to buy Post Purchase Decision OPPORTUNITY 4 Consumer enters Waits at Check In Counter Airline check in System (MOTs) STRATEGIES BASED ON CUSTOMER DECISION MODEL
  • 8. STRATEGIES BASED ON CUSTOMER VALUE PROFILE(1/2) PREMIUM CUSTOMER PROFILE Business Traveller Style Security Comfort Customization Family Traveller Luggage space Durability Adventure seeker Weight Durability Multipurpose Comfort Student Weight Design Samsonite does not have any products to cater to this category of customers EXPAND INTO HIKING CATEGORYOPPORTUNITY AREA 5: What Samso- nite can OFFER? Offer Products for Hiking Lightweight: • Sleeping Bag • Backpack (especially designed) • Tent • Hiking boots • Other travel accessories CONSUMER • Love to explore nature • Affluent and well Educated • Age group: 18-24 yrs(Mostly Post Graduates ), 35-44 yrs (with Families) • Mostly from Metropolitan Cities • 60% of travellers are foreigners • Target mainly locations like Himalayas and Gangotri • Bargaining power of consumers: High since local players present with products of low prices POTENTIAL • Market size : 100 – 150 Crores • Rapidly expanding market: 15% growth rate • Increasing number of adventurous youth (in India); Business travellers love going for year end vacation • Fragmented Market • Only one major player(Wildcraft) • Category in nascent stage • Low Investment COMPETITIVE RIVALRY Mild Rivalry • Market Leader: Wildcraft • Other Local Players • Equipment imported from Nepal and China Source: www.onecaribbean.org, Indian Mounterring Foundation, The Indian Backpacker
  • 9. STRATEGIES BASED ON CUSTOMER VALUE PROFILE (2/2) SECURITY Bags with RFID technique Customer informs about baggage loss on website  bag easily tracked via RFID CUSTOMI ZATION Customized Women Laptop Bags Color Tapered Shape COMFORT Bags with health implications With handles which reduce pressure Back packs which adjust according to shape of spinal chord INTRODUCTION OF PRODUCTS WITH BETTER FEATURES OPPORTUNITY AREA 6: NEW DISTRIBUTION CHANNEL OPPORTUNITY AREA 7: CORPORATE OFFICE Collaborate with Corporate Office • Use the already established in-house stores in offices • Offer business travellers luggage and accessories portfolio on discount • Focus on Premiere Companies which involve lot of travel. For eg. Consulting firms (BCG, McKinsey..) Directly connect to our TG Easy availability of products Increase in visibility TG: Premium Male Professional who don’t have much time to shop PREMIUM CUSTOMER PROFILE Business Traveller Style Security Comfort Customization Family Traveller Luggage space Durability Adventure seeker Weight Durability Multipurpose Comfort Student Weight Design Samsonite can introduce new features to cater to this need
  • 10. CONCLUSIONUNDERSTANDINGEFFECTOF MARKETINGCHANNELSON CUSTOMERS BUSINESS TRAVELLERS, ADVENTURE SEEKERS, STUDENTS, FAMILY TRAVELLERS Membership Cards Collaboration with airports / airlines Coupons in premium magazines BUSINESS TRAVELLERS Social Media promotion (LinkedIn) Sponsorship of business confederations, B school alum meets, shows on travel channels Collaboration with corporates (in house stores) STUDENTS Airport Metro Link • Sponsorship with business events/ B-school alum meets • Digital promotion on LinkedIn • Promotion at Airport Metro Link • Discount/exchange coupons in Magazines • In house stores in corporates • Enter hiking category SHORT TERM •Collaboration with Airline/Airports • Enhancement of products by introducing new features (women laptop, RFID security technique, health implications) • Samsonite Membership Card • Sponsorship of travel show MEDIUMTERM LONG TERM