rket would likely deny the company an opportunity to attain its objectives.The prestige segment of the luggage market seeks high quality leather luggage. Origin Group USA possesses a special competency to design and manufacture leather luggage. The quality levels and features of the company's luggage products must be improved in order to compete successfully in the prestige segment of the market; however, such improvements are well within the capacities and resources of the company.
The potential of the prestige segment will easily support the marketing plan objectives for the company. In 1991, as an example, the sales increase objective approximates $550,000, and such a sales gain on the part of Origin Group USA would not constitute a threat to any of the existing players in the prestige segment of the market. The transfer of all of the company's existing sales activity (approximately $5.5 million in 1990) from the middle segment of the industry to the prestige segment, however, would constitute a threat to some of the existing smaller segment participants, although not to the segment leaders Hartman in the United States, and Lark and French in Western Europe.
The sales forecast is based on 1990 sales levels, as a starting point, and on the attainment of annual sales growth objectives. For the 1991 1995 time period, the sales forecast is as follows:
5. 1995: $8,857,805.II. SITUATION ANALYSIS
Origin Group USA, Inc. is a manufacturer and marketer of leather luggage and attache case products. These products are the hard sided type, which are intended to retain the external configuration under most conditions to which they would be exposed. The company's existing products are in the mid range of both quality and price, and they are marketed in the United States, Canada, and Western Europe.
2. Current Market Situation The company is five years old, and, in 1988, relocated most of its production facilities in the ...