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
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