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S T P R: M I B (MIB) Expansion of Samsonite and American Tourister in Uae
S T P R: M I B (MIB) Expansion of Samsonite and American Tourister in Uae
Undertaken at
SAMSONITE, MIDDLE EAST
EXPANSION OF SAMSONITE
AND AMERICAN TOURISTER IN UAE
By
SHAMS MUSTAFA HASHMI
09-MIB-46
MIB Class of 2011
1
Declaration
I, Shams Mustafa Hashmi, a bonafide student of MIB (Full Time) Programme at the
Centre for Management Studies, Jamia Millia Islamia, New Delhi, hereby declare that
I have undergone the Summer Training at Samsonite, Middle East under the
supervision of Mr. Shaheen Jamil on and from 02/06/10 to 20/07/10.
I also declare that the present project report is based on the above summer training and
is my original work. The content of this project has not been submitted to any other
university or institute either in part or in full for the award of any degree, diploma or
fellowship.
Further, I assign the right to the university, subject to the permission from the
organization concerned, use the information and contents of this project to develop
cases, caselets, case leads and papers for publication and/or for use in teaching.
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Acknowledgment
I express my sincere gratitude to my industry guides Mr. Shaheen Jamil, Asst Director
Sales and Mr. Prashant Vatkar, Vice President Samsonite Middle East for their
guidance, continuous support and cooperation throughout my project, without which
the project would not have been possible.
I would also like to thank the entire team of Samsonite M.E, for their constant support,
which helped in successful completion of the project.
3
Table of Contents
S.No Topic Page No.
1 Executive Summary 4
2 Genesis: Samsonite 5-7
3 History 8-9
4 American Tourister 10-13
5 Samsonite Black Label 14-19
6 Vision & Organizational Structure 20-21
7 Objective 22
8 Plans For Expansion in UAE 23-24
9 Article in Gulf News 25-27
10 Literature review 28-29
11 Business Strategy & Current Core Strategy 30-31
12 Form of Organization & Brand Portfolio 31-32
13 Market Share & Past Performance 33
14 Future Prospects 34-36
15 Competition (Samsonite & American Tourister) 37-39
16 Customer & Retailer Preference 40
17 Recent Management Initiatives 41
18 Project Assigned 42
19 Purpose 42
20 Nature of Work and Working Hours 42
21 Research Methodology 43
22 Project (Field Research) 44
23 Samsonite, Stores and Recommendations 44-56
24 American Tourister, Stores and Recommendations 57-65
25 Outcome and Result, Learning & Experience 66
26 SWOT Analysis 67
27 Findings & Recommendations 68
28 Appendix 69-82
29 References 83
Executive Summary
The project aims at studying the stores of the UAE market that can be a partner or
sync with the Samsonite and American Tourister. So my project deals with the study
of luggage markets as well as stores that can sync with the luggage products. Luggage
products combine the luggage items of all sizes (55cm, 66cm, 77cm), Backpacks,
Laptop bags, Women’s Bags, Briefcases, Wallets & Accessories.
The research deals with the study of the stores that can be a partner for Samsonite &
American Tourister in UAE and finding the demand for the product in the market.
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Checking all the stores that fall in the criteria of Samsonite & American Tourister.
Checking the products, price, size of the store, brands etc.
UAE is a growing market for the luggage industry. Samsonite is the only luggage store
that has maximum numbers of store in UAE if compared to the competitors.
Competitors are far behind. It involved the product-price customer mix by which an
analysis is taken for the product the price given by the customer. It also involved that
on the basis of store the products will be kept, if it’s a women’s bags store then
Samsonite Red Label brand will be kept and same for other stores also.
Genesis
When Jesse Shwayder founded Samsonite in 1910, early travel was reserved for only
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an exclusive few, those who had the means to see the world. Given this exclusiveness,
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, to create unique solutions for the sophisticated traveler. By identifying
trends and interpreting travelers’ needs, Samsonite continues to infuse innovation and
new ideas into travel re-igniting the sophisticated and special experience of the past.
Today, Samsonite continues to lead the luggage category with those same core
principles, further expanding Shwayder’s vision globally with design and innovation
into product categories and consumer targets. Samsonite’s tagline - ‘Life’s a Journey’
- embodies the brand’s transformation and future, symbolizing the role Samsonite has
in the multi-faceted lives of travelers. Samsonite has earned its reputation for
delivering a range of exclusive travel solutions and bringing real benefits to the end-
consumer. The company, founded by Jesse Shwayder with only $3500 in capital,
launched its first set of coordinated luggage in 1920s and was the first to launch
stylized luggage in 1940s. In the next decade, it launched Silhouette - the most
advanced luggage of its time while the Samsonite Classic Attaché was unveiled in
1960s. The 1970s saw the launch of Saturn -- the first ever-polypropylene suitcase,
followed by the introduction of three-point locking system in 1980s.
The two-wheel uprights and 4-wheel spinners, pioneered by Samsonite, were unveiled
in 1990s whereas the 2000s saw the introduction of designer luggage. Some of the
products launched last year include the Cosmolite range - its lightest and the strongest
luggage solutions; a premium business collection as also a range of backpacks from
American Tourister, which has taken unprecedented market leadership with its
customized offering.
If you look back into any and every innovation that has happened in the history of the
luggage industry, at least Samsonite would have brought in 70-80 per cent of
innovations.
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From around 80 years ago when all luggage was in the form of heavy wooden trunks,
Samsonite was the first to introduce the use of sheet metal as its material and from
then the shift to plastic to ensure a lighter travel companion.
Major alterations such as the shift from horizontal luggage to vertical, adding wheels
and then adding brakes and including a lock to which airport customs have a master
key, have also been innovations introduced by Samsonite. Other exclusive features in
its luggage manufacturing include wood-frame construction, super-strong handles,
rayon linings, fibre finishes and secures locks.
History
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 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
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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.
The Samsonite Corporation makes luggage with its products ranging from large
suitcases to small toiletries bags and briefcases. It was started in Denver, Colorado,
USA in 1910 by Jesse Shwayder, as the Shwayder Trunk Manufacturing Company.
Shwayder named one of his initial cases "Samson", after the Biblical strongman, and
began using the trademark Samsonite in 1941. The company changed its name to
Samsonite in 1966. For many years, a subsidiary, Samsonite Furniture Co., made
folding chairs and card tables in Murfreesboro, Tennessee.
Beginning in 1961, Samsonite manufactured and distributed Lego building toys for the
North American market under license from the Danish parent firm. A licensing dispute
ended the arrangement in the U.S. in 1972, but Samsonite remained the distributor in
Canada until 1986. Stan A. Clamage was instrumental in establishing the Lego brand
in the United States. This was part of an overall company expansion into toy
manufacturing in the 1960s that was abandoned in the 1970s. The Shwayder family
sold the company to Beatrice Foods in 1973.
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American Tourister :
The new line was a resounding success and set a new standard for the industry.
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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.
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The new line-up of luggage from American Tourister offers the unique mix of style,
comfort and in-built sturdiness to satisfy the new age needs of the traveler across all
age groups and demands.
Among the range of new collection is the Oxford range of luggage offering durable
high-quality bags at affordable prices, System 4 Dlx showcasing comfort and
elegance in travel, Meredian Lite extending diverse options with ultra light weight of
the bags, I Double epitomizing sturdy travel and robust luggage solutions with very
distinct looks in bright colors, a new range of casual bags and backpacks, and the
Silicon Valley Gusset top loaders for today's business travelers.
American Tourister has always believed in offering the latest and the most compact
travel luggage solutions to its discerning clientele. 2009 offering extends the perfect
blend of functionality, styling, strength and comfort - hallmarks of our world-class
luggage solutions. The new lines of luggage solutions are catering to the needs of the
today's traveler - note only for the whole family but also to a businessman or a
student,"
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While the Oxford range come in three different sizes in two eye-catching colors with
durable EVA side panels, the System 4 Dlx offer premium classic looks in two colors
and four sizes, equipped with a lockable trolley. The expandable Meridian Lite come
in four sizes with easy single side packing facility, while I Double comes in two
colors with unique design and double wheel spinner system.
The Backpacks, made of polyester, come in five different sizes with capacity
between 20 L and 32 L. The Silicon Valley Gusset Top loaders come in three sizes
and a laptop backpack edition, equipped with zipped packet.
The secret behind the time-tested durability of American Tourister bags has been the
extremely stringent and rigorous quality tests that each design goes through before
getting approved by the company. Randomly chosen bags undergo similar tests on a
continuous basis to ensure that they are in line with the tough guidelines set by the
company.
These tests include Drop Test - a fully loaded bag is dropped five times at the corners
to check its strength at extreme temperatures; and Jerk Test - a loaded bag is given
jerks for 5000 times in quick succession to ensure the durability of critical parts like
handles.
The American Tourister bags also undergo Lock Test - where the locks are opened
and closed 15000 times in quick succession to ascertain the safety aspects. The
checks also include a Wheel Test, where loaded bags are made to travel nearly 32 km
to establish its sturdiness.
The bags also undergo a Tumble test, where a loaded bag is tumbled in a big drum 25
times continuously to ensure that they withstand rough handling.
This new line up has gone through the same rigor of in finalizing the design and
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hence is expected to delight many more satisfied American Tourister customers in
the Middle East Region.
Black Label
The Black Label brand of Samsonite deals with the luxury luggage products. It was
launched to meet the requirements of high-end customers and designer luxury
products in the luggage industry
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Alexander McQueen
Samsonite Black Label by Alexander McQueen
Two influential global brands Samsonite and Alexander McQueen have joined forces
and combined the best in craftsmanship and innovation to create a revolution at the
cutting edge of luxury travel design. The result is a totally unique collection of travel
pieces that fuses nature and technology. Patterns and designs inspired by nature have
been brought to life using the latest technological know how. Samsonite Black Label
by Alexander McQueen is an ergonomic collection featuring natural shapes and curves
that look revolutionary against the traditional hard lines of luggage. A sophisticated re-
interpretation of nature with a unique, modern design edge resulting in a totally unique
collection consisting of travel pieces, bags and accessories.
Patterns and designs inspired by nature brought to life using the latest technological
know how. Samsonite Black Label by Alexander McQueen is an ergonomic
collection, featuring natural shapes and curves, which look revolutionary against the
traditional hard lines of luggage.
The hero piece in the collection takes design inspiration from the human rib cage.
“The human ribcage protects our vital organs as we move about in the world. Luggage
takes on the same role as we travel and pack our worldly possessions inside for safe
transport, ”
This collection is ideal for discerning travelers with an eye for great design.
The Glamour of Yesterday with the Functionality for Today
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Vintage
The Vintage collection transports the traveler back to the 1930s and 40s, when travel
was glamorous and exotic destinations beckoned the heart of the adventurer. The
Vintage collection offers sleek styles, vivid colors and luxurious options, making
luggage an essential accessory for jet-setting travelers. Fine detailing and authentic
touches of yesterday, created with a modern twist, include leather and hardware
accents, and rich interiors. Compartments and organizational features, inspired by the
early travel trunks and wardrobe cases, offer functionality for today.
Excelerator
It is inspired by luxury Grand Tourer cars, and brings their unique combination of
luxury detailing and materials with their time proven reliability and quality, and
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ultimately functionality. A stylish and unique combination of sturdy nylon fabric,
Napa leather details, black chrome hardware, silent PU wheels and rich blue interior
and accessories.
Excelerator Sevruga
Black Label is the name given to the Samsonite line in which each collection is
unique and has a personality all its own. In a literal sense, they do have a personality
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as each line within Black Label has been inspired, promoted, or co-designed by a
person of note.
The following are the different lines that are part of the premium Black Label
collections and the famous people or designers associated with them:
Marcello Bottoli, President and CEO, Samsonite inaugurated the store as a show of
commitment to the UAE and continuous growth in region. For 100 years Samsonite
has delivered consistently the founding principles of fine craftsmanship, quality
materials, experience and individual style. The collections including the Black Label
line combine this unrivalled history with the style and design credentials of
Samsonite today to create the most exciting and diverse collections to date.
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also be fashionable, as well as functional. For 2007 Samsonite has re-edited the
original exciting pieces together with new modern shapes. The collection is finished
off with matching accessories including an update of the classic raincoat and rainhat.
Samsonite's sophistication and knowledge of travel has been applied to create a range
of individual accessory pieces that complete the travel experience. Defined by the
fusion of Samsonite's experience and heritage, with the latest in functionality and
contemporary design the collections feature beautifully designed exteriors, rich
materials and luxurious details
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Travel places two sets of demands on your feet. Firstly, a comfort factor as they
expand or contract depending on physical or environmental factors. Second, a style
factor because the journey of the sophisticated traveler requires multiple styles
adapted to different occasions. Samsonite Black Label Ultimate Travel Shoe
Collection represents a unique and proprietary solution to both.
Samsonite
Vision
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To become one of the worlds most highly regarded premium lifestyle travel brands.
Three years ago, Samsonite embarked upon a journey to transform itself into a leading
global lifestyle travel company. To serve as our roadmap, we established three primary
financial goals: increase sales, grow gross margins and generate improved cash flow.
During the year, we unveiled a significant number of new products; dramatically
expanded our retail distribution channel; made strategic investments in new global
markets; completed the acquisition of a majority interest in American luxury
accessories house Lambertson Truex, and launched major global advertising and
public relations campaigns. We continue to define, develop, clarify and promote all of
our brands, thereby strengthening our position in every market segment and building a
solid platform for future growth.
It has been said that the act of making a journey is often more meaningful than the
reality of reaching one's destination. Samsonite's journey over the past three years has,
indeed, been both deeply meaningful and highly rewarding. During this time, we have
created and developed a new brand and successfully positioned it in the luxury market;
built brand equity across our complementary portfolio on a global scale; and firmly
placed Samsonite on the path to becoming a globally recognized innovation, quality
and style leader. We have grown and diversified our revenue stream across multiple
geographic markets, distribution channels, product categories and consumer segments.
And we have made great progress in improving our operating income, strengthening
our balance sheet and setting the stage for greater growth.
While we are proud of our progress, we are also keenly aware that we have much
more to accomplish. As a team, we are sharply focused on executing the next phase of
our strategic plan with the same dedication, discipline and results that our stakeholders
and customers have come to expect. In the process, we plan to reward your support by
building Samsonite into one of the most highly regarded premium lifestyle brands in
the world.
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Organizational Structure
Vice President
Assistant Director
Authorized Dealers
Customers
Objective
Main Objective
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Study on Channel Expansion for Business/backpack/Accessories category for
Samsonite in UAE
Study on Distribution Expansion of American Tourister in UAE
Sub Objectives
o To study the market for luggage projects
o Finding the store which can sync with Samsonite & American Tourister
o Finding the potential market for the luggage products
o Finding the visibility of the product
o Finding the market for a particular brand (Red Label & Camera Bags)
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Samsonite
Samsonite have opened this new classic Samsonite store in partnership with our UAE
distributor partner Grand Stores. We are delighted to extend our exceptional
offering and travel luggage solutions to shoppers at Mirdif City Centre (Dubai). It
reinforces our ambitious growth plans and supports our strategic objective of being
more accessible to our valued customers. We aim to further enhance our retail
footprint, with two more stores set for opening around mid-2010."
Through this aggressive expansion, Samsonite aims to reinforce its legacy of leading
the travel industry to new levels of innovation. At Samsonite, we are focused on
developing and delivering premium travel products and solutions aimed at enhancing
customer satisfaction and convenience - something we have cherished and
successfully achieved over the last 100 years."
Samsonite has earned its reputation for delivering innovative travel solutions and
bringing real benefits to the end-consumer. Some of the innovative products launched
last year by Samsonite include the Cosmolite range - its lightest and the strongest
luggage solutions; a premium business collection as also a range of innovative
backpacks from American Tourister.
The Samsonite luggage and travel accessories are also available at all Grand Stores -
its authorized distributors across the UAE for almost three decades, and other
exclusive stores located at major shopping centre’s in the region.
Samsonite, which was established in 1910, has grown from a small company with 20
employees in Denver, Colorado, into a global corporation with over 8,000 employees
working in over 30 locations around the globe and annual sales of $750 million.
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Samsonite, the world leader in luxury baggage segment has added many exclusive
retail stores in the region in the recent months, including the UAE. The recent
inauguration of its stores at the Dubai Mall, Mall of Emirates and the one at the Deira
City Centre is testimony to Samsonite's growing popularity in the region. The
company has also added more than 50 stores across the GCC, in association with
other retailers like Harvey Nichols, Shoemart, Strandbags and Debenhams, and more
stores for the GCC are in the pipeline.
New business lines compliment world-class luggage solutions for the discerning
professionals on the move
Samsonite Group, the worldwide leader in travel solutions, has announced the launch
of new business collection for discerning professionals across the region. The
unveiling of the new business luggage solutions further reinforces the group's
commitment to market leadership across every consumer segment in the Middle East.
The launch of the premium business collection perfectly fits the business
functionality, technology and unique styles of the professionals
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Expansion of Samsonite and American Tourister in UAE
Gulf News took the chance to talk to Prashant Vatkar, Vice-President, Middle East of
Samsonite, about the company's focus in the region, the impact of the financial crisis
on the industry and business perspectives for the times to come.
After 100 years of operations, how is Samsonite positioning itself today in a very
competitive environment in the luggage industry?
Has the downturn in the travel industry in the wake of the financial crisis
affected luggage sales?
There has been pressure on the luggage industry on account of the financial crisis. In
such times formidable brands like Samsonite has the wherewithal to sustain the
business due to its size and scale. At the same time the smaller players typically start
working on the mindset of "minimizing losses" and hence start dropping rates to get
rid of inventories. While this does put a lot of pressure on a brand like Samsonite, yet
with its iconic image and trust built over 100 years, the brand is able to maintain
growth in such difficult times. In sum Samsonite has been successfully able to
increase the market share every time the situation turns difficult.
Could you give a quick overview on Samsonite's activities in the Gulf region, the
structure of the company, the number of outlets as well as its presence in GCC
countries?
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In the Middle East region we have our business partners like Grand Stores in the
UAE, Al Qureshi's in Saudi Arabia, Khimji Ramdas in Oman, Blue Salon in Qatar
and Al Hawaj in Bahrain. Our partners are fully aligned to the brand strategy of
Samsonite of operating exclusive brand stores in the best locations. This approach
has been backed up with brand enhancing activities like advertising and sponsorship
on Arabic channels like MBC 1, MBC2, MBC4, Sama TV, Dubai TV and so on, in
mall activation and meaningful promotions for retail customers.
The other very critical aspect of our brand-building strategy particularly in the
Middle East region over the past couple of years has been getting our mono-brand
retail store footprint at the right locations to match the brand esteem. Over the past 12
months we have added 10 mono-brand stores for Samsonite across the region at
absolutely prime locations in spite of the economic scenario. By July this year
Samsonite will have 50 exclusive brand stores in the region.
Can you provide details on sales figures and revenue in the region?
As a result of the activities mentioned above we have been able to maintain the
preference of our customers towards Samsonite and grow the business. In 2010 we
grew so far a whopping 50 per cent compared to last year.
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Small beginnings
Luggage salesman Jesse Shwayder with a capital of $3,500 founded Samsonite in
1910 in Denver, Colorado. It began manufacturing products from large suitcases to
bags and briefcases. The name derives from the biblical figure Samson. Later on,
Samsonite also started producing furniture and Lego toys for the US market. After an
expansion drive in the 1960s, the Shwayder family sold the company to multi-brand
group Beatrice Foods in 1973. In the coming years, a spin-off and some restructuring
followed, and eventually in 2007, financial investor CVC Capital Partners took over
Samsonite.
Literature review
4P’s of Marketing
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The major marketing management decisions can be classified as follows:
– Product
– Price
– Place (distribution)
– Promotion
These variables are known as the marketing mix or the 4 P's of marketing. They are
the variables that marketing managers can control in order to best satisfy customers in
the target market.
Marketing Mix
Product Place
Target Market
Price Promotion
Product
The product is the physical product or service offered to the consumer. In the case of
physical products, it also refers to any services or conveniences that are part of the
offering.
Price
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Pricing decisions should take into account profit margins and the probable pricing
response of competitors. Pricing includes not only the list price, but also discounts,
financing, and other options such as leasing.
Pricing is a major factor as the price of Samsonite is market at such a point that it
target the right customers
Place
Place (or placement) decisions are those associated with channels of distribution that
serve as the means for getting the product to the target customers. The distribution
system performs transactional, logistical, and facilitating functions.
Right place for the right product as Samsonite in the Malls & High-end streets while
American Tourister in the local market
Promotion
Business Strategy
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Samsonite is pursuing several strategic initiatives designed to capitalize 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.
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Current Core Strategy
Trade up Samsonite and Samsonite Black Label through exclusive retail and high-end
department stores
Address the mass market with American Tourister
Form of Organization
Type Private
Founded Denver, Colorado, USA
(1910)
Headquarters Mansfield, MA
Key people Tim Parker, President
Member of CVC
Brand Portfolio
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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.
Market Share
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The UAE is the largest market for Samsonite in the Mena region, holding 42 per cent
of regional sales.
This year has seen its market share increase from 40 per cent to slightly more than 50
per cent.
Globally, Samsonite earns 60-70 per cent of its revenue from retail. In the UAE, 90
per cent of its business comes from retail,
Past Performance
Future Prospects
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Samsonite Group, the worldwide leader in innovative travel solutions, is marking a
major milestone, celebrating 100 years of success this year. To commemorate the
occasion, the group has announced aggressive growth plans across the Middle East
region over the next three years.
As part of its strategic expansion, Samsonite Middle East is planning to open over 25
new stores in the next 3 years of which 10 will be opened by end of 2010 itself. Over
and above this expansion of the retail foot print Samsonite will also be looking at
expanding its presence in relevant department stores for its ICT and business
collection and back packs
Samsonite has come a long way since its inception a century ago. Our products are
synonymous with travel and are used the world over, by everyone from Arctic
explorers and package tourists to busy executive travelers. From a small local luggage
manufacturer, Samsonite has grown with the century and traveled as the world has
traveled - a story of a company that has ventured far from its roots. It is this consumer
preference and affinity to the brand that gives us at Samsonite the passion to keep
developing innovations and maintaining best in class quality and service for our
offering."
Samsonite products are styled with inspiration drawn from various facets of life, and
the portfolio includes products inspired by man, machine and nature. With such vast
range of strong, sturdy and convenient luggage solutions on offer, Samsonite's future
plans centers on building its market share for accessories, business and backpacks in
the Middle East. In continuation of this journey in the centenary year Samsonite will
be launching a very aggressive new line up - 12 new lines under Samsonite brand and
20 new lines under American Tourister in the Middle East.
Samsonite has always been at the leading edge of design, new material and styling.
Epitomizing strength, durability and quality, all Samsonite products is put through
tortuous environmental tests for function, fitness, form and stress. At the same time,
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they are marketed tested for consumer acceptance of their color, style, quality and
price. Samsonite has been the leading the luggage industry for the greater part of the
20th Century and the journey is far from over.
The luggage is known for its strength. "It is made the same material used for making
bullet-proof vests.
The material, which has been patented by Samsonite for the next 25 years, greatly
reduces the weight and increases the durability of the case. While a normal 79-
centimetre piece of luggage weighs around seven to eight kilograms for a hard case
and around six kilograms for a soft case, the Cosmolite bag of the same size weighs
3.2 kilograms.
Samsonite, the leading manufacturer of luggage in the world, is currently the top seller
of luggage in the United States, Europe, and Japan and has had a presence in the
Middle East for around 30 years. The next biggest markets in the region are Saudi then
Kuwait.
In the UAE, Samsonite has nine monobrand stores and is in the process of adding a
further five this year. In the UAE Samsonite is sold only by monobrand stores. A
brand of this stature needs to be sold with a particular experience. Samsonite goes
through a series of extremely rigorous tests that need to be explained to customers.
Simple things, like all our wheels that have self-lubricating mechanisms, with a small
amount of lubricant that consistently trickles onto ball bearings. In a hypermarket the
suitcases' various features and manufacturing details will get lost.
New lines
35
Within the region, the recently launched Cosmolite line has been the company's top-
selling line.
Alongside this new line, the next year will see the company introducing 12 new lines
and updating four to five lines.
In addition to durability, Samsonite prides itself on being the most innovative luggage
brand in the world.
Competition
36
Samsonite Competitors and their stores
American Tourister
37
Competition product assortment
AED
500
450
400
350
300
250
200
150
100
50
500
450
400
350
300
250
200
150
100
50
38
500
450
400
350
300
250
200
150
100
50
Customer Preference
39
9% 32%
24%
Price
Quality
Brand
35% Discount
Retailer Preference
16%
35%
40
Samsonite Middle East is planning to open over 25 new stores in the next 3 years of
which 10 will be opened by end of 2010 itself.
Samsonite's future plans centers on building its market share for accessories, business
and backpacks in the Middle East. In continuation of this journey in the centenary year
Samsonite will be launching a very aggressive new line up - 12 new lines under
Samsonite brand and 20 new lines under American Tourister in the Middle East.
Project Assigned
41
Study on Channel Expansion for Business/backpack/Accessories category for
Samsonite in UAE
Study on Distribution Expansion of American Tourister in UAE
Purpose
With Samsonite getting into category focus with Luggage/ Business/ Backpack/
Accessories, this project will undertake identifying retailers for expansion of
business. The focus will be on retailers who retail the above categories
collectively or individually and are in sync with/ complement Samsonite’s identity
and fabric.
Identifying different doors to expand AT, from being a current Hyper led brand to
a more widely available brand across the retail spectrum.
Nature of Work
Working Hours
10 am to 6pm
42
Research Methodology
To brief them about Samsonite and American Tourister products in order to know
their willingness to sell the same from their stores.
43
Project (Field Research)
The analysis and the interpretation of data collected are given below. The data is
divided into two parts:
Samsonite
American Tourister
SAMSONITE
As per the project the stores that are interested & able to sync with Samsonite, their
details are provided below which can be contacted.
E-City
Synopsis:
Visited few of the E-city stores at different locations ns and they seem to be interested.
E-city is an electronics store. The details are here under.
Name Available at Store Management My Suggestion
of the Mall/Street Remark
store
E-city Wafi Mall, Mall of Will be interested in It can be considered for
the Emirates & Al keeping the samsonite the Samsonite laptop
Wahda Mall laptop bags, camera bags bags, camera bags &
& backpacks backpacks
Wants to check the The store was much
quality & price interested in keeping
the products
Recommendations
44
E-city store will be an ideal choice and they seem to be interested.
Customers will be interested in buying the Samsonite products.
IT Manager seems to be interested in keeping the products in august.
The Company should initiate discussions with them on the same.
Contact Details
Mr. Danilo (IT Manager)
Tel: 04-3243651
Mob: 050-6753072
45
Plus IT
Synopsis:
Visited few of the Plus IT stores at different locations and they seem to be interested.
Plus IT is a women’s bags store. The details are given below.
Recommendations
Plus IT store will be an ideal choice and they seem to be interested.
High-end customers.
The Company should initiate discussions with them on the same.
Contact Details
Salam Studio & Store
Tel: 04-7048305
Email: fashion.luu@salam.ae
Mr. Maher (Brand Manager)
Mob: 050-4025665
Plus IT is a partner of Salam
46
Opera
Synopsis:
Visited few of the opera stores at different locations and they seem to be interested.
Opera is women bags & footwear store. The details are here under.
Recommendations
Opera store will be an ideal choice and they seem to be interested.
Other brands with high-end prices
The Company should initiate discussions with them on the same.
Contact Details
Mr. Tariq (Buyer)
Tel: 04-3291718
Email: operatrd@eim.ae
47
Sacoche
Synopsis:
Visited few of the Sacoche stores at different locations and they seem to be interested.
Sacoche is a women’s bags store. The details are here under.
Recommendations
Sacoche will be an ideal choice for Red Label and they seem to be interested
High-end customers
Variety of other brands
The Company should initiate discussions with them on the same.
Contact Details:
Mr. Shaheen Majid (Buyer)
Tel: 04-2973000
Mob: 055-4003936
Mr. Fahed Suroor
Mob: 050-7550338
48
Valencia
Synopsis:
Visited few of the Valencia stores at different locations and they seem to be interested.
Valencia is women bags & footwear store. The details are here under.
Recommendations
Valencia will be an ideal choice for Red Label and they seem to be interested
High-end customers
Variety of other brands with high prices
The Company should initiate discussions with them on the same.
Contact Details
Mr. Ali Hussain
Tel: 04-8094876/ 899
Email: Valencia.shoes@cplmg.com
49
Saks Fifth Avenue
Synopsis
Visited the stores at Burjuman Mall and Saks Fifth Avenue store seem to be interested.
Saks Fifth Avenue is a retail store of women’s bags, crystal, clothes & cosmetics.
The details are here under
Recommendations
Saks Fifth Avenue will be an ideal choice for Red Label and they seem to be
interested
High-end customers
Variety of other brands with high prices
The Company should initiate discussions with them on the same.
Contact Details
Tel: 04-3515551
Mob: 050-2653730
Email: reception@s5ame.com
50
Canon
Synopsis
Visited the stores at Dubai Mall and Canon store seem to be interested. Canon is a
store of camera, handy cam & printers. The details are here under.
Recommendations
Canon will be an ideal choice for Samsonite camera bags and they seem to be
interested
High-end customers
The Company should initiate discussions with them on the same.
Contact Details
Mr. Ashok
Tel: 04-3536074
Email: sales@nationalstore.ae
51
Sharaf DG
Synopsis
Visited few of the Sharaf DG stores at different locations and they seem to be
interested. Sharaf DG is an electronic products store.
The details are here under.
Recommendations
Sharaf DG will be an ideal choice for Samsonite camera & laptop bags and they seem
to be interested
High-end customers
Variety of brand with high prices
The Company should initiate discussions with them on the same.
Contact Details
Mr. Piyush
Tel: 04-3156725
Head Office: 04-3156700
52
Iconic
Synopsis
Visited the stores at Deira City Center and Iconic store seem to be interested. Iconic is
a retail store of clothes, cosmetics, electronics and sports.
The details are here under
Recommendations
Iconic store will be an ideal choice and they seem to be interested.
Customers will be interested in buying American Tourister luggage products and
Samsonite luggage products also can be considered
The Company should initiate discussions with them on the same.
Contact Details
Mr. Zelalem D Abebe (Operation, Manager)
Tel: 04-8094500
Mob: 050-5504094
Email: zelalem.dawit@cplmg.com
53
Virgin Megastore
Synopsis
Visited few of the Virgin stores at different locations and they seem to be interested.
Virgin is an electronic products store.
Recommendations
Virgin Megastore will be an ideal choice and they seem to be interested.
Customers will be interested in buying Samsonite camera bags, laptop bags &
backpacks.
A wide range of laptop bags already in the store
The Company should initiate discussions with them on the same.
Contact Details
Ms Jesa
Tel: 04-4393100
Email: jesa.pamclona@virginmena.com
54
Eros Digital Home
Synopsis
Visited few of the Eros Digital Home stores at different locations and they seem to be
interested. It is an electronic products store.
The details are here under.
Recommendations
Eros Digital Home will be an ideal choice and they seem to be interested.
Customers will be interested in buying camera & laptop bags
The Company should initiate discussions with them on the same.
Contact Details
Ms Nishtha
Tel: 04-2666216
Email: nishtha.rijhwani@erosgroup.ae
55
I style
Synopsis
Visited few of the I style stores at different locations and they seem to be interested. It
is a computer store.
The details are here under
Recommendations
I style will be an ideal choice and they seem to be interested.
Customers will be interested in buying Samsonite laptop bags
Number of laptop bag brands with good prices
The Company should initiate discussions with them on the same.
Contact Details
Ms Hani
Tel: 04-2233438
Email: hani@istyle.ae
56
AMERICAN TOURISTER
As per the project the stores that are interested & able to sync with American Tourister
their details are provided under which can be contacted.
Spinney’s
Synopsis
Visited few of the spinney’s stores at different locations and they seem to be
interested. Spinney’s is a general store. The details are here under.
Recommendations
Spinney’s store will be an ideal choice and they seem to be interested.
Lot of customer who will be interested in buying American Tourister
The Company should initiate discussions with them on the same.
Contact Details
Ms Adili
Trading Dept.
Email- adele.l@spinneys-dubai.com
Tel: 04-3555250
57
Synopsis
Out of the 20 stores visited on the computer street 1 store seem to be interested and
can be an ideal choice for laptop bags. The remarks are hereunder
Recommendations
Mohd Mirza Electronics will be an ideal choice and it seem to be interested
Laptop bags can be kept as the store has a wide range of laptop bags with good prices
The company should initiate discussions with them on the same
Contact Details
Mr. Majid
Mob: 050-535537
58
Synopsis
Out of the 22 stores visited in the murshid market 2 stores seem to be interested and
can be a choice for American Tourister luggage products.
The remarks are hereunder
Recommendations
White Pigeon Trading will be an ideal choice and it seem to be interested
Luggage products can be kept as the store has a wide range of luggage products with
good prices
The store exports its products to many countries
The company should initiate discussions with them on the same
Contact Details
Store:
Tel: 04-2265822
Mob: 050-5459485
Email- pigeontrading@gmail.com
59
store Mall /Street
Abdul Murshid Will be interested in selling It can be considered for
Hamid Market American Tourister luggage American Tourister
Abedi products based on the quality luggage products
Co.LLC and price The store manufactures
Wants the catalogue its own products but
seem to be interested
Recommendations
Abdul Hamid Abedi will be an ideal choice and it seem to be interested
Luggage products can be kept as the store has a wide range of luggage products
The company should initiate discussions with them on the same
Contact Details
Mr. Mohammad
Tel: 04-2268081
Mob: 050-6586415
Email- ahabedi@emirates.net.ae
Iconic
Synopsis
60
Visited the stores at Deira City Center and Iconic store seem to be interested. Iconic is
a retail store of clothes, cosmetics, electronics and sports.
The details are here under
Recommendations
Iconic store will be an ideal choice and they seem to be interested.
Customers will be interested in buying American Tourister luggage products
The Company should initiate discussions with them on the same.
Contact Details
Mr. Zelalem D Abebe (Operation, Manager)
Tel: 04-8094500
Mob: 050-5504094
Email: zelalem.dawit@cplmg.com
Virgin Megastore
61
Synopsis
Visited few of the Virgin stores at different locations and they seem to be interested.
Virgin is an electronic products store. The details are here under.
Recommendations
Virgin Megastore will be an ideal choice and they seem to be interested.
Customers will be interested in buying American Tourister laptop bags
A wide range of laptop bags already in the store
The Company should initiate discussions with them on the same.
Contact Details
Ms Jesa
Tel: 04-4393100
Email: jesa.pamclona@virginmena.com
Synopsis
62
Visited few of the Eros Digital Home stores at different locations and they seem to be
interested. It is an electronic products store.
The details are here under.
Recommendations
Eros Digital Home will be an ideal choice and they seem to be interested.
Customers will be interested in buying American Tourister laptop bags
The Company should initiate discussions with them on the same.
Contact Details
Ms Nishtha
Tel: 04-2666216
Email: nishtha.rijhwani@erosgroup.ae
I style
Synopsis
63
Visited few of the I style stores at different locations and they seem to be interested. It
is a computer store. The details are here under.
Recommendations
I style will be an ideal choice and they seem to be interested.
Customers will be interested in buying American Tourister laptop bags
Number of laptop bag brands with good prices
The Company should initiate discussions with them on the same.
Contact Details
Ms Hani
Tel: 04-2233438
Email: hani@istyle.ae
Sharaf DG
Synopsis
64
Visited few of the Sharaf DG stores at different locations and they seem to be
interested. Sharaf DG is an electronic products store.
The details are here under.
Recommendations
Sharaf DG will be an ideal choice for American Tourister laptop bags and they seem
to be interested
High-end customers
Variety of brand with high prices
The Company should initiate discussions with them on the same.
Contact Details
Mr. Piyush
Tel: 04-3156725
Head Office: 04-3156700
65
Competitors of American Tourister are Delsey and many small manufacturers.
There is no competition of Samsonite in the market.
Majority interested in Samsonite.
Samsonite having maximum number of stores in UAE as compared to other brands.
Being an MIB student, it was a great learning experience for me. It gave me the idea
of marketing research, dealing with the customers, wholesalers and retailers and
awareness about the Samsonite products.
Following things I came to know during my training
o How to deal with the customers?
o How to initiate project?
o What methodology to be adopted?
o What is retailing industry?
This study really helped me out in gaining knowledge about retailing industries. I am
very thankful to my project in charge for providing the research methodology that
helped me in completing my project.
SWOT Analysis
Strengths Weakness
66
Quality at affordable prices Less local marketing
Has a product range that satisfies the Less Dealer meets,
market Less Advertising
Dealer margins are good Visibility of product is less at local markets
Good distribution channel Rarely discount on products
Distribution cost is low
Product for each Market
Number of stores
Opportunities Threats
Luggage industry growing at faster Price sensitivity of the market
pace Aggressive marketing by the
Decrease in the stores of other brands competitors
Decline in the market share of other Entry of new and old players (Tumi
brands & Delsey)
Findings
67
Samsonite present in 42% of the market covered.
Most preferred brand Samsonite Cosmolite.
Others brands in market: Delsey, Tumi and Kipling.
Most Street shops are not aware of Samsonite.
Visibility at local market is low.
Retailer prefers quality and price.
Samsonite has a good brand image in market
Sells its products through the distributor
Sale in two seasons (June and December)
Consumer prefer price and quality
Recommendations
The company should do advertising so that people get aware of the product
The company should work on its product visibility at local market mainly
street shops
Every possible step should be taken for the satisfaction of the authorized
dealers, as they are most important supplement to the sales promotion and
nationwide advertising campaign
The company should modify its advertising strategy and educate the customers
about its century old existence and enhance its brand image
The company should distribute its products according to the market potential
The company should keep its American tourister product at the local market
The company should keep an regular check on the distribution channel
The company should be more focused on the Cosmolite range as it is in
demand by the customers
APPENDIX
68
Stores visited during the training
Computer Street
I Store Computer LLC
Mohd Mirza Electronics
Sharaf DG
Computer Selection LLC
Al Twfeeq Computers Trading LLC
Carapelli Computers.
Office Suppliers & Computer Accessories
Business Connection
Datasat Computer Technology LLC
Smart Touch Computers
Areej Middle East Trading LLC
Ninja Computers LLC
Mayet general Trading
Transworld Computer Technology LLC
Mercury
Winning Deals Computers
Mohd Sohail Trading co. LLC
Salman Arshad Trading LLC
Compact Integrated Business
True Value Computer LLC
Apple eye LLC
Resa Technology LLC
69
Murshid Market
White Pigeon trading co. LLC
Abdul Hameed Hameedi (Manufacturer)
Al Battain Traders
Saleh store trading LLC
Humaima Trading LLC
Royal bags trading LLC
Monza Italy
Jehan Exhibition LLC
Asad Abdullah LLC
Top Level Trading LLC
Mohd, Amin Mamood (Manufacturer and exporter)
Al Faryabi Trading LLC
Shahab Stores (Agent)
Al khayam Exhibition LLC
Girder Trading LLC
Qiaojinqiao General Trading LLC
Areef Abdul Raman
Eminent
Mohd & Abdul Raman Mahmud Al Awazi
Osaka Trading LLC
70
Naif Market
Hussain Hassan Trading LLC
Karmas Trading LLC
Al Shaima Trading LLC
Mohd Raffia Ismail LLC
Waqi Trading LLC
Wadi Oman General Trading LLC
United Stars Trading LLC
Beautiful Palace LLC
New Style LLC
Grace General Trading LLC
Bah Khan & Shah Wazir Trading LLC
Zainal Abedin A.R. general Trading Est.
Red Bay Trading Est.
Oman Store
Bin Eid Trading LLC
Bader Ahmad General Trading LLC
Al Abdooli General Trading
Al Maghseel Trading LLC
Kasseri Trading LLC
Goal General Trading LLC
Safi Ali Lou
Huraiz Abdulla Trading LLC
Adal Trading LLC
71
Ibn Battuta Mall
BuiltMart (Danube)
REDTAG (Home Fashion)
Jacky’s Electronics
Sun & Sand Sports
Studio R (R.S.H (M.E) LLC)
Sharaf DG
Rivoli Enterprises
Go Sport
Shoe Mart
BC Bulgaria
Jumbo Electronics
Faces
Hang Ten
Paris Hilton
Nike
@Home (The homeward store)
Bench
Wrangler
Peacocks
Woolworths
Forever 21
Paris Gallery
Verdi
Le Chateau
Milan
H&M
Tags
72
Nine West
Giordano
Bhs
Pierre Cardin
73
Electronics & Perfumes
Fashion
Shoes & Luggage
Household & Gifts
Furniture & Carpets
Food Court & Play Zone
Jumbo Electronics
Sun & Sand Sports
Shoe Mart
Eros Digital Home
Lifestyle
Aldo
Evans
Woolworths
G2000
Kipling
74
Rolla Market, Sharjah
75
Sahrab Ali
Al Faseele trading
Al Rajab
Al Jawariah & Al Safiah
76
Ahmed Siddiqi & Sons
Shoe City
Stadium
Al Harman
Turnover
Rivoli
Lacoste
Banana Republic
Elle
Woolworths
Debenhams
Armani Exchange
Aligner
GAP
Ghurair City
Domino
Calonge
Fortuna Trading LLC
Naturalize
Sacoche
Sun & Sand Sports
Sharif
Plug Ins
Leather Palace
Jashanmal
Reef Mall
Nicoli
77
Sacoche
Shoe Mart
Shoe Studio
Home Center
Century Mall
Shoes4us
Expressions
78
Jacky’s Electronics
Dovani
Versailles
Lamcy Plaza
Style Studio
Sports
Shoe Mart
Jewel Craft
Bhs
Paris Gallery
Dubai Mall
Geox
Stadium
Valencia
Plug Ins
Panasonic
Sharaf DG
Canon
Jumbo Electronics
Jacky’s Electronics
Sharif
Shoe Mart
Paris Gallery
Plus IT
Opera
Missis
Golf House
79
Zapping
Galeries Lafayette
I Style
Rivoli
Bloomingdales
Burjuman Mall
Sacoche
Maguey’s
Studio R
Jumbo
Saks Fifth Avenue
Virgin
Bhs
Tanagra
Paris Gallery
Leather Palace
Bank Street
Your e-store
Riato
80
Shoe Mart
Computer Depot
Jumbo Electronics
81
E-City
Jumbo Electronics
Tech zone
Dubai Gallery
Claire’s
82
Plus IT
I style
Makati Palazzo
Paris Gallery
Plug Ins
Danube Build Mart
Al Flak Electronics
The Athlete’s Foot
Bhs
Wafi City
E-City
Emirates Sports Store
Jumbo Electronics
Rocco Line
Opera
Sebago
Salam
Tanagra
References
www.samsonite.com
en.wikipedia.org/wiki/Samsonite
www.samsonite.in
www.samsoniteblacklabel.com
www.ameinfo.com/201717.htm
www.luggageonline.com/brand.cfm?brand_ID=29
en.wikipedia.org/wiki/American_Tourister
gulfnews.com/.../samsonite-continues-positive-steady-growth-1.5938
83
news.bayt.com/.../samsonite-unveils-innovative-business-collection-for-
middle-east-traveller/
www.eyeofdubai.com
www.thefreelibrary.com/Samsonite+focuses+on+boosting+expansion+in+
Middle+East.-a0228856704
gulfnews.com/.../samsonite-set-to-continue-its-growth-plans-1.60123
Apart from this a lot of official company data has also been used to get knowledge
about the luggage industry.
84