RIMOWA's Marketing Strategies: Product Differentiation and Positioning

This report provides a detailed analysis of RIMOWA's marketing strategies, focusing on its core products, market performance, and brand value. It begins with a background of the company, founded in 1898, and identifies its key products, including various luggage types made from materials like polycarbonate and aluminum. The report then elaborates on the implementation of Deschamps and Nayak's five product strategies within the context of RIMOWA, examining how the company competes through product proliferation, value, design, innovation, and services. Furthermore, the report illustrates RIMOWA's product differentiation and positioning strategies, emphasizing its iconic design and premium quality, and discusses the brand values of creativity, innovation, and product usefulness. The analysis includes a discussion of RIMOWA's position in the market, its competitors, and concludes with lessons learned from the company's strategies, highlighting the importance of brand positioning in the competitive market.

Running head: MARKETING.
Marketing
Name of the Student
Name of the University
Author Note

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Abstract
Founded by Paul Morszeck in the year 1898 in Germany, RIMOWA specialised in the
manufacturing of the luggage. The organisation specialises in providing or manufacturing
elegant suitcases from the year 1920. Its design of the suitcases and luggage has been the top
choice of the sophisticated globe-trotters. The assignment identifies the core products of the
company together with the performance of RIMOWA in the global market.
Furthermore, Deschamps and Nayak’s five product strategies have been illustrated in the
context of the performance of the company. The core principles related to the product
differentiation and positioning strategies of the organisation has also been analysed in light of
the company’s performance. The assignment chooses the brand, RIMOWA where the
product designs actively deploy for the communication of the brand values. The paper
highlights the brand values of RIMOWA like the creativity, the innovation and the usefulness
of the products manufactured by the organisation. The assignment concludes with the lessons
learned from the entire assignment regarding the strategies that should be implemented for
brand positioning in the market.

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Table of Contents
Introduction................................................................................................................................3
1. Research on the background of the organisation...............................................................3
2. Identification and the description of the core products of the organisation.......................4
3. Elaboration on the implementation of Deschamps and Nayak five distinct product
strategies.................................................................................................................................5
4. Illustration of the implementation of the product differentiation and positioning
strategies of the organisation..................................................................................................7
5. Involved brands and Brand value discussion.....................................................................9
6. Lessons learned from the organisation.............................................................................11
Conclusion................................................................................................................................11
References................................................................................................................................12

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Introduction
Founded in the year 1898 at Cologne, RIMOWA has been one of the quintessential
houses for the prestigious luggage. The company is mostly renowned for its prestigious and
iconic design and its constant target for reaching the peak of excellence. The company
continually strives to become the icon for the sophisticated travellers who love to discover
new levels of the horizon (Rimowa.com 2019). The assignment focuses on the performance
of the organisation in the competitive market. It analyses the performance of the company in
light of Deschamps and Nayak's distinct product strategies. The assignment furthermore
explains the product differentiation and the positioning strategies of the company
highlighting one of the examples of the brand within the organisation. The assignment finally
discusses the lessons learned from the strategy used by the organisation for sustaining in the
competitive market.
Discussion
1. Research on the background of the organisation
RIMOWA is famous for manufacturing of luggage. Founded by Paul Morszeck in the
year 1898 in Germany, the company specialised in the manufacturing of the luggage with
various raw materials until the year 1930. The company introduced polycarbonate boxes and
started using mental cases for designing its baggage. This famous house manufacturer of
prestigious luggage joined the LVMH group in the year 2017 and acquired the name of the
first German subsidiary. Best known for the aluminium suitcase that is generally recognised
by the parallel grooves, this company revolutionised the entire baggage industry by its
innovative development and introductions (Bhatti, Larimo and Carrasco 2016). For more than

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60 years, the suitcase of the RIMOWA has been inspired by the story of the commercial
aviation and fuselage of the first metallic plane namely the Junkers F-13. The company takes
pride in providing original luggage with the grooves. With the motto of remaining true to
oneself and delivering innovative, waterproof system and high tech facilities, the company
stands firm in the market with a heavy competition with the pride of distinctive and unique
ranges of its manufacturing products.
2. Identification and the description of the core products of the organisation
The organisation specialises in providing or manufacturing elegant suitcases from the
year 1920. Its design of the suitcases and luggage has been the top choice of the sophisticated
globe-trotters. This section of the report will explain and highlight the core products that the
company sells and takes pride in the international market.
RIMOWA sells different variety of luggage, specifically suitcases. The range of the
luggage includes hybrid, original, essential, essential lite, classic and essential sleeve. The
company provides this luggage in different colour variants among three size options, namely
the cabin, the check-in and the trunk. RIMOWA provides its customers with two options for
their luggage (Nupap et al. 2016). One is the polycarbonate casing that is lightweight, travel-
friendly and long lasting in nature. The second is the traditional aluminium body case that is
unbeatable in terms of strength in comparison with other products in the market by other
manufacturers. Besides the luggage, RIMOWA furthermore manufactures and sells iPhone
cases, leather goods, belts and charms, stickers and limited edition luggage that are available
in the store on special occasions. The company furthermore provides repair services to its
customers thus maintaining perfect position in the global competitive market of luggage.

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3. Elaboration on the implementation of Deschamps and Nayak five distinct
product strategies
Depending upon the reputation and the performance of the organisation, RIMOWA
(LVMH), Deschamps and Nayak suggested their view regarding the competitive success
(Donzé 2018). According to them, there is no such thing as a commodity product. Deschamps
and Nayak proposed five of the basic strategies that are essential for competing through the
products. In the context of the performance of RIMOWA, the five basic strategies are as
follows. The five strategies can be implemented in the context of RIMOWA. This has been
discussed in the below table.
The Product Strategy Firm Name How
Competition through the
proliferation of the product
RIMOWA ( LVMH) The company after entering
the market of the baggage
offered a wide range of the
variation of its core product
luggage. With a number of
colour variants and three
size variation, the company
provided its luggage to its
customers in two material
choice. The polycarbonate
cases for lightweight and
easy travelling and the
aluminium case for extra
security and strength in bulk

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luggage.
Competition through the
value
RIMOWA ( LVMH) The company offers a top
and prestigious quality of
luggage in a comparatively
reasonable price range. The
luggage designed and
manufactured by the
company furthermore
provides a guaranteed seal
of lock for its customers.
This factor helps the
company to sustain in the
market with competing
through the value for its
product range.
Competition through the
design
RIMOWA ( LVMH) The company has been
listed under LVMH and is
mostly renowned for its
iconic designs among both
the heavy duty and the
travel-friendly luggage.
Competition through
innovation
RIMOWA ( LVMH) The company has been the
epitome of innovation.
From the beginning of the
time, RIMOWA had been

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the first company to use
metal products, aluminium
for the body. Furthermore, it
introduced polycarbonate
for its luggage case.
Competition through the
services
RIMOWA ( LVMH) Apart from the high quality
innovative and icon
designed luggage that is
preferable to most of the
travellers, the company
provides beneficial
customer services for
repairing of its products.
4. Illustration of the implementation of the product differentiation and
positioning strategies of the organisation
This section will illustrate the strategy followed by RIMOWA (LVMH) for building and
strengthening the long term competitive position of the business in the marketplace. The
product strategy of the company includes some of the key factors that include competitive
strategy, cost leadership, differentiation and focusers. The product differentiation strategy for
the RIMOWA (LVMH) soughed by the competitor is generally based upon the cost with the
proposition for the value for money (Teece, Peteraf and Leih 2016). In case of RIMOWA
(LVMH) the product differentiation strategy is based on the superior quality that tends to
encompass better materials, better and improved performances, new and innovative features,

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different availability and better services. As per the analysis, the product differentiation
strategy includes the following:
 The Core product – For the company, RIMOWA (LVMH), the core product is the
luggage
 The expected outcome – For the company, the expected range of the product is some
new and innovative luggage with more durability and facility.
 The Augmented Product – The company offers prestigious and iconic design of
luggage for the sophisticated travellers who love to discover new levels of the
horizon.
 The potential product – The products of the organisation, specifically the luggage
includes all the features that are envisaged as a benefit to the customers.
The product positioning strategy for the RIMOWA (LVMH) refers to the inherent
qualities that tend to distinguish the items or the products that are sold from the
comparable items generally marked by the competitors of the organisation (Zehir, Can
and Karaboga 2015). In the case of the RIMOWA (LVMH), the well planned and
effective strategy related to the product positioning and the product value includes three
of the main objectives. The Product value of the company are as follows.
These are, RIMOWA (LVMH) differentiates its products from the other similar luggage
produced by other manufacturers in the market.
RIMOWA (LVMH) expands its wide range of the values and the criteria for the
customers of its product so that they can influence the purchasing decisions.
RIMOWA (LVMH) establishes some of the significant uniqueness and innovative
characteristics of the products available in the market.

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Some of the conventional approaches that the organisation takes in the light of the
corporate value or the product differentiation strategy include the positioning of its product,
specifically the unique and the iconic designed luggage directly against the other
manufacturer of luggage in the market (Yoo and Park 2016). This approach of the corporate
value by the organisation claims regarding the evidence of the superiority as the key market
leader of the product that RIMOWA (LVMH) specialises in. Besides this, the organisation
focuses on the benefits that it provides to its users regarding the aftersales service of the
products. RIMOWA (LVMH) highlights on the specific value of the luggage that is offered
to its customers focusing on the facilities and the unique features of the baggage that are way
better than the available alternatives.
5. Involved brands and Brand value discussion
The leader of the high quality products, LVMH owns the top brands including
RIMOWA.
One of the examples of the brand from this organisation where the design of the
products is actively deployed for the communication of the value of the brand is RIMOWA
RIMOWA, one of the renowned brand of LVMH specialises in the manufacturing of
luggage. It is the perfect example of the luxury brand under LVMH that specialises in the
iconic design of luggage and bags made up of polycarbonate boxes and aluminium metal
cases. The brand specialises in the manufacturing of strong and durable luggage with the high
quality metals to make it more durable, iconic and unique in the global market of baggage
goods and products. Headquartered in Cologne, Germany the company is famous in the
fashion industry serving high quality designer luggage for its consumers (Stiehler and Lee
2016). Its top competitors are Hershel Supply Co., BRIGGS & RILEY, Arlo Skye, American
Tourister and more.

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Table: Market share of RIMOWA
Source: (Stiehler and Lee 2016)

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Some of the significant product value of the company includes iconic hard-shell
casing for the luggage, durable and travel friendly luggage for the frequent travellers,
designer IPhone back covers, leather goods and belts and limited edition products that the
brad manufactures in special occasions. RIMOWA uses the unique and iconic design of its
products, specifically the metal and the polycarbonate cases for durability, fashion and
smooth textures for actively deploying the communication regarding the value of the brand.
Positioning Map
High Price
Roam RIMOWA Away
BRIGGS & RILEY Hershel Supply Co.
Arlo Skye
eBags American Tourister
Low Durability
High
Targus
Some of the brand values that RIMOWA includes in the context of the product design
are as follows. Brand value signifies the usefulness of the product. The products and the
items that are manufactured by RIMOWA have specific Brand values.
 The hard shell aluminium luggage offered by the company helps in reliability ,
protection from rough and hard handling.