Brand Strategy
The core Samsonite brand, which is well-regarded for its functional aspects, and Samsonite RED, which is targeted at causal and business segments, are positioned differently in the alternative brand strategy. We have analysed the core brand and RED separately and devised brand strategy for each to further penetrate the customer segments individually. With the new brand strategy, the total Samsonite brand value is expected to improve by 28.5 % in next 5 years.
Expected Brand Value Improvement
With the new marketing strategies, there is greater awareness of the Samsonite Core Brand and Samsonite RED in the market. Together with the implementation of the internal strategies, brand strength has also increased from 80 to 85.5 as a result of a clearer branding strategy. The Expected Annual Growth is projected to increase from 2.6% to 5% for leisure travellers and 8 % for business travellers . The discount factor has improved from 6.6% to 6.2%. The stronger ties fostered with our target segments, we revised the components of our RBI, brand strength and eventually arrived at a new valuation of $5.1 mil, 28.5% increase from the previous valuation in assignment 3.
Samsonite Core Brand Growth and Sustainability
One of the major drawbacks with the Samsonite brand is that being a predominantly luggage brand, its association in the customers minds are purely functional attributes of strength, durability, and reliability. In order for Samsonite to grow in a segment that is not showing promising growth, it is imperative for Samsonite to develop an emotional element that resonates with its targeted customers. It was evident from the survey that Samsonite as a luggage bag does not provide a level or personalization desired by its target customers. Also, from the survey and also through research reports, it was found that in Singapore most of the outbound travelers travel for leisure purposes.
The first thing that Samsonite needs to address is the perception of exclusivity when a potential customer is thinking of purchasing a luggage bag. As of now, Samsonite is available through its exclusive stores but also through department stores such as Takashimaya, Tangs, and Mustafa Center. In order for Samsonite to provide exclusivity and also to control the user experience, Samsonite will have to remove its products from department stores and move them to their exclusive showrooms.
In order to capitalize on leisure travel as a means for partners and families to get together and enjoy their lives, we would like to position Samsonite as a brand that focuses on togetherness and personalization. We shall be developing this process through a series of events as listed below:
Family Day event design Samsonite:
The first step would be for Samsonite to organize a family oriented carnival that will bring families together to participate in fun activities. This even should be heavily advertised in both print and digital media through social media channels in order to maximize its reach across Singapore. In that event, Samsonite can organize an event whereby participants as families will co-develop a design on a canvas. The winning design will then be selected and will be incorporated as a design on a new cosmolite luggage that will be shipped to the winning family. This event will then be broadcast through traditional, digital and social media to garner support and understand the reaction of Singaporeans to the effort.
Samsonite RED
Samsonite RED is relatively new to the market in Singapore and the product range in is limited compared to the global offering. Samsonite company is trying to position RED as a distinct segment separate from travel luggage and targeting casual and business segments.
On top of it, consumers perceive Samsonite as a travel luggage brand. In order to imprint the new image of RED for casual usage, Samsonite has an uphill task to not only convey the message, but also reach its intended target group consisting of youth and adult professionals.
How to elevate the RED brand?
Every brand is different. New brands little more. If a brand is aligned with causes that matter to people, it leaves a deep imprint on the people’s mind. Consumer advocacy for branding is perhaps the cost efficient and most effective form to reach the target audience.
National conversation
Create a national conversation by questioning people of all walks on why black and dark colors considered synonymous to business? The campaign also involves women professionals to understand their perspective. The campaign will take multiple facets and uses several channels at different stages of the implementation.
Citizen Journalism
In the first 6 months, the focus will be on citizen journalism to understand the perspectives of consumers and induce them to think on why color is not part of business lifestyle. The program will also try to debunk the myth associated with black and dark colors. Citizen journalism will be designed to reach target audience predominantly through visual ads and social media.
Colorful Business Lifestyle
Once target audience is aware of the campaign, the second stage of the campaign for another 6 months would be to inject RED into people’s mind to associate colors to business lifestyle. In this program, several young professionals will be offered RED products and will be asked to record their experiences on what they feel about the product, whether it meets their daily needs and how others perceive them with the new bag. The program aims to dispense the message of colorful business lifestyle and how cool people are seen at workplaces.
Business Fasion Shows
To compliment the visual media conversation, a yearly business fashion show will be planned to display all the existing and new models of Samsonite RED to associate the brand with fashion and young adults.
Budget Estimates
The program is expected to cost high as it involves various channels and a yearlong program rather than an event. We intend to recruit student interns to help with the program and also use print/visual media judiciously to propagate the message. Instead of running the program for the whole of 5 years, the program is expected to last for first 2 years as this period is considered extremely crucial to bring awareness to the new brand extension. After the 2 year program, a limited form of the campaign will be retained over social media channels to keep the awareness of the RED brand fresh in the minds of target audience. Overall, the entire program is expected to cost the company approximately SGD 245,000.
Repeat the event and start developing a mass-customization website:
The above event would then have to be conducted after every 3 to six months to maintain the buzz around the event and also to gather momentum for the idea regarding personalization of travel bags for families. In the meantime, Samsonite would have to run advertising campaigns on TV, social-media and traditional media about how its is helping in making family vacation trips memorable. At the back-end, Samsonite would then prepare its manufacturing facilities and start providing winning designs on their websites in addition to several generic designs for families to customize for their luggage purchase.
After a full 18 months of activities, this brand campaign should help in developing a robust system that can provide Samsonite customers to customize their designs based on their own designs as a family and make purchases either online (interactive website) or at the exclusive Samsonite showrooms (Integrated kiosks).
Budget Estimates
The program is expected to cost the company about SGD 20,000 per year and the event will be planned for twice a year in the first two years. To capitalize on the social media, a similar program that runs 365 days a year to design and imprint logos/arts on the Samsonite suitcases, an online platform will be designed and contests will be planned for the best designs. The entire cost of the program is expected to be ~ 160,000 SGD for a 5 year period.