Samsonite's Strong Suit

Brandweek, Sept 27, 1999 by Mike Beirne

Is it time to stand by for Samsonite Airlines or Samsonite Cruise Line? Maybe not: those are among the rare travel-themed concepts that company execs seem not to be currently considering. Samsonite Home Security? Now that is a possibility. A luggage manufacturer selling burglar alarms makes as much sense as the already-existing Samsonite Travel Club and Samsonite Travel Wear, since consumers want to know their roost is safe while they travel, argues Mark Korros, president of Samsonite USA and Canada, and the man behind many of the way-out-seeming ideas. By that reasoning, those consumers want airfare deals and cruise discounts from a name they trust. And they want travel wear-such as a "temperature" jacket that reads body temperature to provide the right coolness or warmth--from a company that understands a thing or two about the rigors of being on the road. Then there are pet carriers and car rooftop carriers ...

Get the point? Samsonite no longer views itself as just a luggage company, but rather as a travel brand. While durability long has been the manufacturer's central message, via memorable TV ads of a gorilla beating on a Samsonite and a skier sledding down a mountain on a suitcase, tough luggage was not enough to sustain the firm in a tougher U.S. market in recent years, when weak industrywide demand prompted discount promotions. Sales sagged, inventories ballooned, workers were jettisoned, and Samsonite stock sledded downhill from about $30 in January 1998 to under $10 seven months later.

By virtue of his background at Reebok, Korros saw some of Samsonite's vulnerability even four years ago, when he was lured to the Denver firm's American Tourister unit as svp-retail. Even then, he saw Samsonite as a well-known name but, compared to the exciting and diversified Reebok, one that essentially sold black boxes.

Still, there was a lot to build on. The company's roots go back to the founding of Shwayder Trunk Manufacturing in 1910; Samsonite was first to offer integrated wheels and handles, polypropylene suitcases, and the quintessential business attache case. Samsonite and American Tourister rank No. 1 and No. 2 in the U.S., and the company had a footprint in the premium baggage arena with its Lark brand. With 23,000 outlets in 100 countries, Samsonite arguably possesses the strongest consumer brand awareness. But there's more to traveling than just luggage.

"I saw a company that wanted to be so much more," said Korros, elevated to president in February. "I saw a luggage company that in essence was a travel company."

Its current "Worldproof" tagline, launched in 1997 by TBWA Chiat/Day, Playa del Rey, Calif., still effectively connotes the brand's toughness. But through marketing partnerships and the shopping experience cultivated at its 200 company stores, Samsonite has turned itself into a billboard that travel companies latch onto to promote their own products.

Korros started by partnering with other travel-related brands like Kodak, Rand McNally, AT&T and American Express for coupons and other conventional marketing tie-ins. Then the marketing scheme became grander, as it had to, given the fact that Samsonite customers on average buy luggage once every seven years.

"We all know about bags that have been sitting in the closet or the attic forever," said Korros. "They contain memories. They might be the bags a couple took on their honeymoon, or a suitcase someone used to get to their first job, and there's a desire to make it last forever. What we had to do was look for a way to fight that and do it beyond price, because anyone can lower price. If we could find a way to give you a great experience in travel, maybe we can lure you to go to the store and test drive. That's what led to Universal Studios."

Between March and July, American Tourister supported the launch of its 300 Series luggage by partnering with Universal Studios Escape Islands of Adventure in Orlando, Fla. The "Tough Luggage for a Tough World" TV spot showed a gorilla and T-Rex tussling with luggage, conveying the familiar durability theme while highlighting theme park attractions. In-store promos offered passes to the park. The tie-in was so successful, distribution for the 300 Series jumped to 2,500 outlets, well above the 1,400 originally planned, and demand still is outstripping supply.

With recruiting help from Mike Wargo, vp-sales for online travel provider Preview Travel, destinations like the Bahamas, Cancun, Caracas, Hong Kong, Hawaii and Las Vegas came to the party, using Samsonite's Travel Expo and the fledgling World of Travel superstores as a medium to reach consumers. The retail strategy, developed by vp-merchandising Mike Zucker, aims to put shoppers in a travel environment. Thus, the adventure travel section inside a shop at the Tyson's Corner Mall in McLean, Va., is decked with a canopy of pine trees; a chirping-frogs soundtrack plays in the background. A sailboat and the bleached wood of Joe's Crab Shack adorn the leisure section sporting a beach getaway promo, while the business luggage area might be decorated with bright red Chinese lanterns and paper dragons for a Hong Kong sweepstakes tie in, or whatever destination is being highlighted that month.