HARTMAN LUGGAGE COMPANY CASE

Hartman's customers are primarily in the uppermiddle and high income brackets. At the time frame of the case, the target segment was neither growing nor shrinking. Many of Hartman's customers, at the time frame of the case were also those who were fashion conscious to the extent that they were willing to buy new luggage to remain in fashion. The fact that Hartman's growth exceeded that of the luggage industry while the company's target segment was neither growing nor shrinking was an indication that the number of the company's customers who were responding to fashion motivations was increasing.

In the luggage industry as a whole, the market leaders at the time frame of the case were Samsonite and American Tourister. Hartman's primary competition in the high quality and fashion segment of the industry, however, was French and Lark. French and Lark has a market share about onefifth the size of that of Hartman, while Hartman's market share was only onetenth that of the industry leader, Samsonite, and onefourth that of American Tourister, the number two firm in the industry.

The luggage industry, defined according to industry as opposed to governmental guidelines, was flat to declining. In real terms, the industry projected growth over the 1976198

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re and lower prices would cause some of the company's existing snobbish customers to turn away from the product. II. Analysis of Internal Situation. A. Performance. Over the five year period preceding the time frame of the case, Hartman recorded an annual sales growth rate approximating 30 percent, with an after tax return approximating 10 percent. This performance was outstanding in any context. B. Marketing. Hartman concentrated its advertising in print media with a high level of upperincome readers. Hartman did not participate in cooperative advertising. Similarly, the company distributed its products through highquality fashionoriented department stores, and high quality luggage specialty shops. The company's products were distributed through a total of approximately 1,800 retail outlets, with department stores accounting for approximately threequarters of the total sales volume. C. Competitive Advantage. Hartman's competitive advantage lies primarily in its quality image. The fashion image of the company's "Halston ultrasuede" line also provides a competitive advantage, and this fashion image could increase in importance over the decade following the case time frame. D. Strengt
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Some common words found in the essay are:
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Approximate Word count = 1392
Approximate Pages = 6 (250 words per page)

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