SAMSONITE

Report (2019-20)

SHALU DUBEY, B2B3

UID: 2019-2907-0001-0011
Table of Contents
Sectorial information..............................................................................................................................2
GDP contribution %...............................................................................................................................2
Sub sector contribution in GDP-............................................................................................................2
Historical growth/ DE growth..............................................................................................................3
Reasons –................................................................................................................................................3
Porter’s five forces model......................................................................................................................4
Company information.............................................................................................................................5
Company snapshot.................................................................................................................................5
SWOT Analysis.........................................................................................................................................6
Product portfolio......................................................................................................................................7
Competitors Analysis of Samsonite.......................................................................................................12
NEWS coverage....................................................................................................................................12
Marketing strategy................................................................................................................................13
Marketing mix- 4Ps..............................................................................................................................13
STP-.......................................................................................................................................................13
PLC........................................................................................................................................................14
Sales forecasting-.................................................................................................................................15
Distribution channels..........................................................................................................................16
Digital marketing strategy...................................................................................................................16
Consumer behavior influencing buying..............................................................................................17
Conclusion...............................................................................................................................................20
Sources of information.........................................................................................................................21
Sectorial information
GDP contribution %
Since Samsonite is a luggage manufacturer and retailer company, which falls under industry
sector.
Services sector accounts for 54.40% of total India's GVA of 169.61 lakh crore Indian rupees.
With GVA of Rs. 50.43 lakh crore, Industry sector contributes 29.73%. While, Agriculture and
allied sector shares 15.87% .

GDP Contribution

16%
Agriculture and allied
Industry
Service
54%
30%

Sub sector contribution in GDP-

The overall industrial sector growth is estimated to be 2.5% in 2019-20 as compared to 6.9%
growth in 2018-19. Manufacturing sector is estimated to grow at 2.0% during 2019-20. In
2018-19, share of the Industry sector in GVA was 29.6%.
Index of Industrial Production Growth (IIP) is 0.6% during 2019-20 (April-November). IIP is a
measure of industrial performance. It assigns a weight of 78% to manufacturing followed by
14% to mining and 8% to electricity. Manufacturing activities were subdued due to a decrease in
domestic demand for key sectors such as automotive and pharmaceuticals.
Historical growth/ DE growth

Reasons –
 Possible reasons are because of Demonetization – According to our Prime Minister
Demonetization was a way to dig out black money from the people, but the only strategy
which goes wrong is the circulation of big ticket money earlier, because of which the
strategy of digging out black money fails, he should have circulated small ticket money
earlier.
 Poor implementation of GST – According to India’s literacy rate, their people are not
literate enough to support the concept of GST, that’s why it is also one of the reason for
DE growth of GDP.
 Plummeting domestic automobiles sales – Not providing support to domestic automobiles
company is also one of the reason, they lack in technology and efficiency and the
positioning of the foreign technology is also one of the reason for the De growth of the
GDP.
 Flattening of core sector growth – Every sector was going down, effecting each other,
FMCG sector which never goes down was also the one, which was showing growth rate
in decreasing order.
 Declining investment in construction and infrastructure – Investment is also going down,
because of the saving orientation of households of the country, as the effect of every
sector was on each other, that’s why share market was also going down, which results in
saving instead of investing.
Porter’s five forces model
 Threat of New Entrants
There are many players in this market promoting their product, so the new players have big
difficulty in establishing their brand name in this market. Their threats to the main big players
who already have built brand loyalty in this market are very small. Moreover, this industry is an
already mature one so the profit margins are relatively low and economy of scale is quite
important for lowering the cost. However, there are not many regulations to satisfy entry into the
market and the production is relatively easy compared to the design, so imitation is quite regular
in the lower-end market. (Consumers of lower-end market are not highly concerned with the
label or brand of their travel gear.

 Substitutes and Complements

People travel with suitcases and large bags so it seems that the luggage is an essential part of
personal accessories. The luggage industry doesn’t face too much threat of substitutes. The
luggage is also independent of any other complement.
 Buyer Power
Luggage is a basic need for most people so the demand from end-customers are quite inelastic.
For the designer brands, the customers have a preference for the appearance and details of the
product that cannot be satisfied by simply switching to another brand, which positively affects
the luggage makers. But for the mass market, the products do not differ from each other too
much and imitations are quite common, so the consumers have many alternatives, so the
bargaining power of the manufacturer in this segment is weak.

 Supplier Power

The main inputs of the luggage makers are fabric, plastic and leather. These materials are not
difficult to make and are not too much differentiated. The competition among the suppliers is
quite fierce and the luggage makes usually do not have much special requirements of the input,
so the supplier power is low.

 Existing Rivalry
The internal rivalry of the industry is very intense. There is no significant market leader and the
famous brands are quite a lot, such as Samsonite, Rimowa, Delsey, Louis Vuitton Malletier,
Tumi, VF, etc. That is on the global scale. On the local scale, there is not only competition from
the world-famous brand names, but also low-cost-driven local brands, especially in the emerging
market such as China and Southeast Asia. The competition is mainly focused on two segments,
middle-class emerging market and smart luggage development. Air travel is something the
emerging middle class has come to expect. The emerging markets are fuelling the global luggage
market and they are where the net sales growth mainly comes from. Smart luggage is thought of
with the biggest potential to disrupt the market. GPS tracking, fingerprint unlocking, these new
technologies may lead to a big leap of the luggage world. The main players such as Samsonite
are eagerly following the trend.
In general, the competition and threat in this industry mainly come from the existing rivalry.

Company information
Company snapshot
Vision: To become one of the world’s most highly regarded premium lifestyle travel brands
Samsonite Group is one of the world's largest and most recognized designers and distributors in
the luggage industry.

With a rich heritage that includes nearly a century in business, Samsonite has a proud tradition of
developing innovative, high-quality products that integrate style, functionality and design
technology to meet the changing lifestyle needs of people on the move. Samsonite's tagline –
'Life's a Journey' – embodies the brand's belief and vision, symbolizing the role Samsonite has in
the multi-faceted lives of travelers.

The Samsonite brand was born in 1910 when founder Jesse Shwayder began producing luggage
for turn-of-the-century travelers – a small and affluent group who appreciated the Company's
unique, durable and finely crafted products. As travel evolved into a mainstream activity,
Samsonite's product mix evolved with it, growing to encompass a diverse range of items for a
host of travel needs. Along the way, Samsonite continued to anticipate and fulfill the changing
requirements of travelers by introducing a string of "firsts", including the first matching luggage
sets, the first lightweight luggage and the first wheeled suitcases, to name just a few.

Samsonite's ability to perceive and adapt to the changing needs of travelers has made the brand a
leading authority for people on the move, throughout the years. From the roaring twenties, the
Depression era, WWII, the rise of the jet age, the exciting sixties and beyond, Samsonite has
continued to transform the travel industry through its rich brand history.

Today, the global travel industry continues to grow, and Samsonite continues to lead through the
continuous introduction of innovative technologies, materials and design concepts, which we
market through some of the most recognized brand names in the world. And while each of our
brands is specifically focused on its own clearly defined customer group, every product we
create continues to embody the same values on which Samsonite was founded – high quality,
fine craftsmanship, exceptional reliability and enduring style.
SWOT Analysis
Strength - One of Samsonite Group's greatest assets is our complementary portfolio of brands,
which includes some of the most trusted and highly recognized names in the global travel
industry.

Collectively, our brands serve every segment of the market, reaching customers in all walks of
life, all over the world. We meet the discerning needs of the luxury market through our
Samsonite Black Label brand, while the innovative, high-quality offering within our time-
honored Samsonite brand serves both middle- and upper-market customer segments. Our
American Tourister brand provides affordable, quality products to value-conscious consumers.

We complement our owned brands through our global licensing program, through which we
leverage Samsonite's luggage expertise to partner with market-leading lifestyle brands, such as
Lacoste, with whom we develop handbags and casual bags, and Timberland, with whom we
offer travel gear, accessories, backpacks and outdoor items.

Each of our brands has been carefully developed to meet the precise quality, value and pricing
needs of the consumers within its market. Despite their diversity, all of our brands share a
common philosophy: to deliver durable, high-quality products that reflect Samsonite's
commitment to excellent craftsmanship, innovative design and exceptional functionality.
Weakness – They have positioned their luggage to the premium luggage sector and is organized.
Their products are of high cost. And they were lack in advertisement.
Opportunity – Since the disposable income of the rural consumers were increasing and also the
middle class also. The demands were also increasing in rural areas.
Threats- Competition from local players were stiff. Also presence of other strong brands like
VIP, Rimowa, delsey , tumi etc. Irregular demands (for examples- demands of soft luggages in
wedding season, demands of backpack in academic season most probably from march to april,
etc).
Product portfolio
1. Soft luggage

2. Hard luggage

3. Duffels
4. Small bags
5. Brief case

6. Laptop bag

7. Laptop trolley
8. Wallets

9. Belts
10. Travel accessories
Competitors Analysis of Samsonite
Company name Revenue
1 Rimowa 3.6 B
2 Delsey 382.4 M
3 Tumi 12.5 M
4 Briggs and Riley 527 M
5 Victorinox 190 M
6 Eagle creek 25.4 M
7 Targus 330 M
8 VIP 234.2 M

NEWS coverage
 Samsonite may pack up bags at 100 stores
Luggage giant Samsonite is closing about a quarter of its India stores or more than 100 outlets as
the company is severely stung by the impact of the Covid-19 pandemic, multiple people aware of
the development said.There are about 475 franchisee-operated outlets of Samsonite, American
Tourister and House of Samsonite in the country.
The 100-plus stores being shut are owned by its largest franchisee partner Bagzone Lifestyle,
promoted by the family of Ramesh Tainwala, former global CEO of Samsonite, the sources said.
They only plan to retain a handful of flagship stores in some malls and at some airport and the
rest will be shut,” said a person with direct knowledge of the development.
 How Radhika Piramal is steering VIP Industries towards bigger and global roads
Change is in the air at India’s largest luggage company VIP Industries, and the mood is palpable
at the headquarters in central Mumbai. Located on the top floor of a building in Prabhadevi, the
office sports an open architecture and is in itself a contrast to the rest of the building’s old world
look. The youthful decor has Bollywood stars posters endorsing VIP brands on the walls and
colourful pieces of luggage placed along the corridors.
In two weeks’ time, on April 1, VIP Industries promoter Dilip Piramal, 69, will give up his
executive role to become a non executive chairman, and Sudip Ghose, currently the CEO, will
become the managing director. Around the same time, the VIP brand will be relaunched.
Central to this transition at VIP remains Piramal’s daughter Radhika, who gave up the managing
director’s role two years ago since she wanted to shift to London. The 41-year-old herself is a
breath of fresh air in India’s corporate world, possibly the first Indian CEO who was open about
her homosexuality.
Marketing strategy
Marketing mix- 4Ps
The four P’s gives our company a competitor advantage
Product- Samsonite backpack- speciality product, complex buying behavior
a) Core values : ease up travelling process providing travelers’ a safe and comfortable trip.
b) Actaul product: brand name, quality level, packaging and design, features.
c) Augmented product: delivery credit, product support, warranty, after sale service
Price- Rs 1200 to Rs 15000
a) Traveler’s bag is a USP
b) Skimming pricing strategy
c) Product line strategy
Place- online as well as offline retail stores
a) Direct distribution
b) Indirect distribution
c) 1st line distribution
d) Selective distribution
Promotion- Flyers, TV Commercials, Bill boards, Social media, Airlines magazines

STP-
Segmentation-
Demographics-
a) Gender (both)
b) Age: 12 plus
c) Income- High incomes
d) Occupation: Businessmen, Employees, Travelers.
e) Education- Highly educated
f) Family life cycle – family use to travel a lot, by the times family members start traveling
alone, later on family members are more concerned with their luggage and new travelling
technologies.

Psychographics –
a) Attitudes: responsible, technological oriented
b) Opinions: Learning new things
c) Interests: exploring, experiencing new stuffs and travelling
d) Motives: meeting new people, experiencing new cultures, working, diversification, and
trying new food.
e) Lifestyle explorer, succeeder, reformer, business life.
 Product usage
a) Usage rate- regular basis
b) Benefits sought- safety, electric devices always on, exact luggage weight, confidentiality.
Targeting –
a) High income- Age (12+)-Traveler- technology oriented- regular basis
Positioning-
Person who is a traveler and who wants to explore new things on daily basis, Samsonite
provides them A laptop backpack, which will satisfy their need which is towards
technology also.

PLC
When Jesse Shwayder founded Samsonite® in 1910 in Denver, travel was once reserved for only
an exclusive few, those who had the means to see the world. Given this exclusivity, travel was a
high quality experience from the transportation, to the attention to service, to even the
accessories used to carry one’s belongings. As one of the original brands in travel, Samsonite has
continued to leverage its craftsmanship and heritage as an innovator for the past 110 years, to
create stylish and high quality solutions for the world traveller.

Today, the family business has become a dynamic and world leading luggage company with
several strong brands.
Across the world, Samsonite is performing well, but in India, Samsonite is in growth phase.
People have accepted the samsonite laptop backpack, but since it is not advertised to that much
extent therefore for speeding the growth of the Samsonite, the company should advertise more,
for further growth.
Sales forecasting-
Year sales (in index Forecasted
million sales( in
USD) million USD)

$
2013 1,413.70 0.906579 $ 1,281.63
$
2014 1,535.71 0.984822 $ 1,512.40
$
2015 1,490.47 0.95581 $ 1,424.61
$
2016 1,548.85 0.993248 $ 1,538.39
$
2017 1,654.94 1.061282 $ 1,756.36
$
2018 1,712.60 1.098258 $ 1,880.88

Forecasted sales (in million usd)

$2,000.00
$1,800.00
$1,600.00
$1,400.00
$1,200.00
$1,000.00
$800.00
$600.00
$400.00
$200.00
$-
2 01 2 2 01 3 2 01 4 2015 2016 2017 2 01 8 2 01 9
Distribution channels
Wholesale – their current distribution channel is wholesale and marketing channel which
involves the transfer of ownership.
Indian subsidiary of Samsonite group has selected the Arkieva Supply Chain Planning Software
Suite to create an enhanced demand planning process.

Samsonite group is the worldwide leader in superior travel bags, luggage, and accessories.
Samsonite combines notable style with the latest design technology and attention to quality and
durability to create topnotch travel products.

Samsonite India implemented and launched the Arkieva Demand Planner solution for Samsonite
India after running a pilot program with Arkieva.
The sales which we have forecasted will be possible to achieve it with their existing distribution
channel but the extra effort and extra which will be increased while performing this is only
because of the unawareness about the product and also illiteracy of the population of India.
DTC (direct to Customer)- they can use this distribution strategy, for more conveniently
processing and for building trust with the customers.

Digital marketing strategy

Every product provides one of the four benefits to the customers, here Samsonite has touched the
emotional part of the customers, they are providing emotional benefits.
Four benefits are-
A) Economical benefits.
B) Functional benefits.
C) Emotional benefits.
D) Social benefits.
Anushree Tainwala, executive director - marketing, Samsonite South Asia, said, “India travels
back home for Diwali but while we’re on our journey back home, we often forget the ones who
take us home, who make it possible for us to reach home safely and most often we also forget the
fact that it’s their Diwali too. Our new campaign #DiwaliKaSafar is simply lead by the thought
of wishing our travel enablers a happy Diwali and thanking them for their service. A thank you
can go a long way and a Diwali wish can certainly make someone feel at home even when they
are away from home.”
Pradnya Popade, director, marketing communications, Samsonite South Asia, added,
“Advertising peaks during Diwali and many brands speak about the spirit of Diwali. However,
Samsonite did what’s beyond the ordinary with their new Diwali campaign #DiwaliKaSafar. The
beauty of the campaign is in the simplicity that it holds. The message being that while we’re on
our way back home to reunite with our family and friends, we often forget the ones that help us
reach home during Diwali. Being a travel brand, Samsonite strikes a chord with the audience
effortlessly by just thanking these travel angels and wishing them a Happy Diwali.”
Bodh Deb, vice president and branch head - Mumbai, Autumn Grey, said,“For Samsonite our
endeavour has always been to do meaningful communication that resonates with our audience.
For this Diwali, the insight we came up with was a simple but powerful one. While so many of
us travel back home to spend time with our family, we often miss to acknowledge the selfless
service of all the Travel Enablers in our society. This Diwali, we wanted to take a moment to say
Thank You to them for sacrificing their Diwali, so that we all can travel back home to our
families and enjoy our favourite festival with our loved ones.”

Keeping current scenario in mind, since the travelling rate is going to be down, so Samsonite
should focus on traveling but traveling less and easy travel, like travel with small luggage but to
be careful- to be careful can be their new marketing campaign through digital platforms.

Consumer behavior influencing buying

According to the survey, where I collect the responses from 50 plus respondents,the responses
are as follows which affects the buying behavior of customers-
 Quality
 Color
 Spare pockets
 Brand name
 Availability
 Advertisement
  Mode of purchasing
 Influencers
 Gender
 Age group
 Income
 Lifestyle
 Extra services
 Price
 Durability
 Discounts/ offers
 Lack of awareness
Results from survey
Conclusion
After going through all the points of the company, my conclusion is as follows
Since company has brand name all over the world, but the only problem with the company is that
lack of awareness about the brand, most of the does not even know the name of the company,
that there is something like this exist in market, so they should promote their product extensively
and aggressively.
Also, in coming days India is going to focus on local brand, so Samsonite can adopt a strategy of
showing themselves as local brand, may be this can help.
Sources of information
 GDP related sources from
https://www.indiabudget.gov.in/economicsurvey/doc/Statistical-Appendix-in-English.pdf
 graph from
www.statisticstimes.com
 Growth / de growth (reasons)
www.businesstoday.in
 Porter’s five forces
Coursehero.com
 Company information
http://www.samsoniteindia.com/about_us/history.html
 SWOT Analysis
 Products
 Digital strategy- www.campaignindia.com