Hartmann Luggage HBS Case
In the period from 1979 to 1980 the luggage market in the United States basically covered three segments as shown in the following table: Market and Competition Analysis Upper Price End (high quality luggage) Middle Range (good quality luggage) Lower Price End (low quality luggage) Sales in 1979 [Mio US$]: Hartmann: ca. ... - expensive - less expensive - high quality - good quality - durable - durable Product (“hard sided” versus “soft sided”): All luggage “hard sided” Ca. ... 3/5 “soft sided” All luggage “soft sided” Price: 75% higher than “good quality luggage” segment 75% lower than “high quality luggage” segment *assumption based on 29% market share in 1980 Besides direct competition within the “high quality luggage” segment, growing imports from Italy and Argentina as well as a continuos shift from “hard sided” to “soft sided” luggage endanger Hartmanns market share growth which averaged 22% anually compared with 5% of the total luggage market. The following pie chart shows the three segments on the luggage market and focuses on the upper price end segment where Hartmann is the leader with a 4. ... Besides direct competition within the "high quality luggage" segment, growing imports from Italy and Argentina as well as a continuous shift from "hard sided" to "soft sided" luggage endanger Hartmann’s market share growth which averaged 22% anually compared with 5% of the total luggage market. Hartmann Position in the market The goals of Hartmann in the medium term is to achieve an earnings growth rate of 25% to 30% annually while maintaining their prestigious image and to increase their share in the upper price end segment.