Hartmann Luggage Co. Price Promotion Policy

The Hartmann Luggage Company is the leading domestic manufacturer and marketer of prestige luggage products in the United States. As a prestige goods manufacturer, Hartmann is not a luggage industry leader. The industry leaders are Samsonite and American Tourister. The company's principal competitors in the prestige segment of the luggage market are Lark and French.

This case is concerned with a decision required by the company with respect to a continuation or resumption of a recently conducted price promotion program. The time frame of the case is early1981. The findings of this case analysis are presented in the following discussions: (1) issue definition; (2) analysis of the issue; (3) recommended decision and marketing strategy; and (4) implications of the recommended decision and strategy.

This case rambles on an on about the difference of opinion between the company's chief financial officer, it marketing vice president, and its president as to (1) the assumptions underlying a consultant's report on the success of a recently run sales (price) promotion, and (2) the value to the company generally of sales (Price) promotions. One could, therefore,

easily become bogged down in a tedious assessment of the assumptions underlying the consultant's report, and an evaluation of the efficacy of the use of sales (price) promotions by Hartmann as a mea

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y automobile than is the Cadillac "Seville." Most automotive experts, however, will not agree that either the approximately $20,000 retail list price differential between the Honda "Civic" and the Cadillac "Seville," or the approximately $20,000 retail list price differential between the Cadillac "Seville" and the Mercedes "300" are accurate reflections of quality differences between the two pairs of automobiles. Further, if one were to compare the approximately $40,000 retail list price difference between the Honda "Civic" and the Mercedes "300" to the quality differences between the two automobiles, the the divergence in the measurement of the two variables would be revealed as truly absurd. It is not the assessments of automotive experts, however, which make it possible for automobile manufacturers to price the Mercedes "300" at $55,000, the Cadillac "Seville" at $35,000, and the Honda "Civic" at $15,000, and get away with it. Rather, it is the prestige image created in the collective mind of the individuals in the target markets for the Mercedes 4"300" and the Cadillac "Seville" which cause these price differentials to be feasible price strategies. Thus, any innovation in the way business is conducted, which may, in
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Some common words found in the essay are:
Cadillac Seville, Hartmann Luggage, Issue Definition, Decision Strategy, Issue Prestigegoods, Lark French, Civic Mercedes, Marketing Strategy, Luggage Company, Seville Mercedes, approach pricing, sales price, cadillac seville, challenge industry, market share, challenge industry leadership, recommended decision, industry leadership, sales price promotions, mercedes 300, decision remain, pricing objective, premium quality luggage, hartmann decision remain, applicable hartmann decision,
Approximate Word count = 1356
Approximate Pages = 5 (250 words per page)