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Hartmann Luggage Co. Price Promotion Policy

CASE ANALYSIS: HARTMANN LUGGAGE COMPANY: PRICE PROMOTION POLICY (No. 581068)

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 means of improving market share and profits. Such an orientation to the analysis of this case, however, would completely overlook the real issue involved in the case.

The primary issue involved in this case is the determination by Hartmann Luggage of just what kind of company it wants to be. Does Hartmann desire to be perceived by the consumer as the leading prestige manufacturer and marketer of premium quality luggage? Alternatively, would the company prefer to make a cha...

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Hartmann Luggage Co. Price Promotion Policy. (1969, December 31). In LotsofEssays.com. Retrieved 20:37, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1691501.html