Question

Explain the promotional mix and their different tools that are used by Samsonite, and indicate the type of promotion mix strategy used by the company.

Answer 1

Promotion mix consist of eight major components– advertisement, sales promotion, events and exhibitions, public relation and publicity, direct marketing, interactive marketing, word of mouth and personal selling.

Samsonite is one of the world’s leading and most recognized manufacturers in the luggage industry. Started in 1910, Samsonite has a proud tradition of developing innovative, high-quality luggage products that integrate style, functionality and design to meet the dynamic lifestyle needs of people. As travel and tourism has evolved into a global activity, Samsonite’s product mix has changed and evolved with it, growing to offer a diverse range of products for a different types of travel needs. The company continues to lead through its innovative technologies, materials and design concepts.

To help in acheiving it's growth plans and reach out to more travellers globally, Samsonite follows the following promotion mix strategy-

The main promotional tool samsonite utilizes is the internet. With the help of various e-commerce portals like amazon and ebay, it promotes and sells its wide range of products. On these sites, different features of the luggage products, their price and various offers by the company or the site are listed to entice the customer to make the purchase.

Electronic media (T. V. ) and sponsorship: CNN has tied up with Samsonite to sponsor its new feature series 'My City, My Life' which is travel and lifestyle based series . The sponsorship came into effect from May 2008 and it signalled the brand’s first television advertising campaign in four years and is a significant shift of Samsonite’s earlier spot-driven association with CNN. This sponsorship of the new television series began the next phase of its global campaign titled ‘Life’s a Journey’. This campaign is a mix of brand and product advertising and will expand Samsonite’s brand presence to connect with CNN's audiences across Asia, Europe, Africa, Middle East and Latin America. It will also get the same exposure and benefits thorough CNN's online portal CNN. com.

Print media: Samsonite tied up with a leading fashion photographer, for an advertising campaign. This campaign ran across all major continents, predominantly in print media such as magazines and the Straits Times and Business Times.

Sales promotion: The different sales promotion tools are used by Samsonite are Free coupons, Free shipping , Gift cards, Grocery coupons and extended warranty of 10 years.

Samsonite promotion mix strategy gives less preference to the other tools like direct marketing and personal selling to promote its products. It is much more dependant on the internet for promotional activities, buying. Although internet is preferred choice of many such leading players, a customer can know about information about the product but personal shopping experience is totally missing in this aspect. The following are the other key aspects of Samsonite's promotional mix strategy that it can use to their full potential.

Direct marketing is a tool that Samsonite can use more effectively and needs to pay more attention on. More aggressive approach in the form of emails, fax, voice messages and catalogues to prospective customers sourced through a database, will create more brand awareness among target customers.

Trade show and fairs: Samsonite needs to participate more in various trade shows and fairs in different cities to interact more with the potential customers who visit the fairs and make them aware about the product line. It can also organize trade show and exhibitions at different tourist centers.

Personal selling: Personal selling is the best and the oldest consumer specific medium through it can promote their bags via its sales representatives. This can work specifically for high profile travellers who can investigate all the aspect and features of the product and representatives can personally help them in making an informed decision.

Public relations and publicity: Although it is a leading brand, Samsonite can improve more on its branding among consumers by maintain better relations with them. It can do so in the form of awarding free holidays to the selected customer through lottery system. Steps like these help in word –of-mouth publicity too.

CSR promotion: Even though Samsonite is aware of it's social responsibility and it's commitment to save the environment, increased participation in various social activities will improve its brand image and creating awareness among travellers to maintain the environment and heritage of tourist places that they visit.

Advertisement: Even though Samsonite has a decent advertising strategy, one advertising aspect that it needs to pursue more aggressively is display of ads on air, bus or rail tickets. It can also collaborate with travel agencies and can use their tickets for advertising too.