Hartmann Luggage Case Report Essay

With the compend we did in class, we made the suggestion of non doing the next onward motion. The first thing I did after class was adjusting our flummox in class from three months moving average to a quintette months moving average, with data from previous two months, current month, and two months after. With this adjustment, the incremental increased a little, but still, I think its non attractive enough when taken other factors, such as cannibalization effects, into consideration.Also, as Katz pointed out, the April-May 1978 advancemental material had been announced on January 1 (page 14), the relative lower January-February 1978 gross gross revenue take should not be used to forecast March-May 1978 sales without promotions. In fact, I believe it is the announcement of promotion on January 1st that guide to the low sales level in January-February 1978. Retailers would order fewer units precedent to the promotion but catch up with much units ordered during promotion p eriod.This should also be considered to cut the attractiveness promotion. Other than the data analysis we did in class, at that place are a few more than reasons I dont recommend Hartmann to have a scathe promotion in the following year. First, price promotion will damage Hartmanns mug frame. One of Katzs principles for Hartmann was to maintain a prestigious image (page 2). Since the price promotion itself was not very efficient, why should Hartmann risk its buttocks image to do it? Second, as Katz said, there are all kinds of unalike sorts to increase total sales, and, based on luggage consumer surveys, price promotion was definitely not the best way for Hartmann to acquire higher(prenominal) sales.From Hartmanns own survey, durability and style were considered the most grievous features in selecting luggage (page 5). Although the results itself seems like is a little misleading, since price was not an extract on that questionnaire, it actually should be the real case, and this oddment could be proven from the industry market research in Exhibit 2. In this research result, only 31% of respondents cited price as the most important mensuration in selecting luggage, while 21% cited it as the least important criterion, and only 26% would wait for sale, then go there to buy (page 16).Also, considered the crisscross market for Hartmann, which are customers who demanded the highest quality and durability in luggage (page 1), and its market position as most expensive in the industry (page 1), the demandof its products was definitely inelastic. With such an inelastic demand, price promotion would never be the best approach to ameliorate sales, especially to improve profit. So what would be a better way for Hartmann to increase sales and profit? The same as the consultants, I would recommend Hartmann to make more advertisements to build wider brand cognizance among target consumers (page 14).The reason I makes this testimonial are as follows. Based o n the industry research root in Exhibit 2 (page 16), 48% of respondents believed they would favor a brand of luggage they recognized or had seen advertised.The percentage for Hartmanns target consumers might be even higher, because they were pursuing the highest quality and durability in luggage and the probability that they would trust an unknown brand was very low. However, check to Hartmanns telephone survey (page 5), the overall aided awareness level was pretty low among high income level customers, who were considered as Hartmanns target customers, and only 5% of respondents recalled having seen any Hartmann advertising.Therefore, building brand awareness among target consumers by increasing advertising should be the best way for Hartmann to increase sales and, more important, not jeopardize either favourableness or brand image.Therefore, all reasons listed above, as well as sales data analysis we did in class, point to one identical conclusion that price promotion was not a good choice for Hartmann to achieve sales and earnings objectives. Yet, increasing advertising was a harmless and more effective approach to help Hartmann achieve its objectives.