Strategic Marketing Management Report: Ovis Smart Luggage Case Study

This report provides a comprehensive overview of the strategic marketing management of smart luggage, specifically focusing on the 'SmarterLugg' product under the brand name Ovis. It begins with an introduction and product description, followed by a critical analysis of the market context, including key trends, competitors, and customer behavior. The report delves into segmentation, targeting, and positioning strategies, highlighting the point of parity and difference. It then explores the traditional and service marketing mix elements, offering recommendations for product, pricing, promotion, and distribution. The report concludes by identifying the factors that contribute to the sustainability of the business. The analysis covers market trends, competitor analysis (Away, Raden, Bluesmart, Arlo Skye, and G-Ro), customer attitudes, relevant opportunities like tagging, tracking and locating, and ethical issues regarding battery bans by airlines. The report includes detailed tables and figures to support the analysis, providing a thorough understanding of the smart luggage market and strategic marketing approaches.

Running head: STRATEGIC MARKETING MANAGEMENT
Strategic Marketing Management
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Executive Summary:
The report provides an overview of strategic marketing management of smart luggage
also known as ‘SmarterLugg’ under the brand name Ovis. The report commences with an
introduction along with a product description. The report also puts forward a critical analysis
of the marketing context of smart luggage with focus on the key trends, competitors,
customer attitude and behaviour and the issues and opportunities. The report also focuses on
the segmentation, positioning and targeting along with a mention of the parity and point of
differences. The report also throws a light on the elements of traditional marketing mix and
the service marketing mix. The discussion however ends with a mention of the factors that
not only makes the business work but also sustainable.

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Table of Contents
Part 1: Introduction and Product Description.............................................................................3
Part 2: A Critical Analysis of the Market Context.....................................................................4
a. Key Market Trends.................................................................................................................4
b. Key Competitors and Their Positioning.................................................................................4
c. Current Customer Attitudes/Behaviours in This Market.......................................................7
d. Relevant Issues/ Opportunities including the Social and Ethical Issues................................8
Part 3: Segmentation, Targeting and Positioning.......................................................................9
a. Base of Segmentation Used....................................................................................................9
b. Profile and Persona of Target Market and Their Difference From Past..............................12
c. Benefits Offered and the Problem Solved by Improved Product or Service........................12
d. Point of Parity and Difference for Smart Luggage Market.................................................13
Part 4: Recommended Extended Marketing Mix.....................................................................13
a. Product:................................................................................................................................13
b. Pricing Strategy:...................................................................................................................14
c. Promotional Strategy including Digital Media....................................................................14
d. Channel or Distribution Strategy.........................................................................................15
Part 5: Factors that determines Sustainability of the Business................................................16
Conclusion:..............................................................................................................................17
References:...............................................................................................................................18
Appendix:.................................................................................................................................22

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Part 1: Introduction and Product Description
The report aims at providing an insight into strategic marketing management for a
new and improved product known as the Smart Luggage, also known as the ‘SmarterLugg’
(producthunt.com, 2018). The report therefore puts forward brief analysis of the market.
There is also discussion about the segmentation, targeting and positioning. The report also
focuses on the traditional and service marketing mix elements. The traditional marketing mix
primarily focuses on the product, pricing strategy, promotional and distribution strategy while
the service marketing mix focused on the process, physical evidence and the role of the
customers in the process of value creation and the employees in the challenges of relationship
marketing.
Travelling can sometimes be stressful when the automobiles, trains and planes seem
to conspire in the effort to keep the individual away from the destination. In times of such
whirlwind it is quite helpful to have a luggage that would never hold up a person.
‘SmarterLugg’ is one such smart luggage introduced into the market through the Indiegogo
campaign in the year 2014 thereby raising over close to $2million. The black look with fabric
front and a hard shell frame makes it one of the luxurious and most beautiful items. The smart
luggage is also extremely convenient in terms of the layout and the use. The front pocket is
similar to the size of the laptop thereby allowing an easier access at the security checkpoints.
Although the interior of the luggage looks a bit smaller at the first go but allows more space
that one can even realize. Besides when zipped up and prepared to go the suitcase represents
the perfect size fitting into the overhead compartment without availing more than the fair
share of the spaces. Moreover, the innovative technology of the luggage has set it apart. The
internal battery acted as a means of charging up the phone when the battery exhausted.
Further the presence of a GPS tracking feature for ‘SmarterLugg’ provided an assurance that

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the bag is not lost even when the airlines misplaces it in some other country. The smart
luggage also comes with a smart lock facility that ensured the security of the belongings.
Part 2: A Critical Analysis of the Market Context
a. Key Market Trends
The segment related to digital scaling application will experience highest growth in
the smarter luggage market because of the increasing demand from consumers for analyzing
the overall weight of the baggage prior to journey (researchandmarkets.com 2018). This helps
the travellers in avoiding the hassles in association with travel and eliminates the risk of over
packing. The international smart luggage market had a growth estimation of over USD 630
million in the year 2016 (industrytoday.co.uk 2018). The growth remains accredited to
increase in the per capita income and the shift of the consumer demands for a convenient
lifestyle. There will be an increase in the demand for the user-friendly smart luggage for its
practical application. It will also help in opening up opportunities of further growth in the
industry. Besides, the infiltration of the advanced technologies like the digital scaling and the
Bluetooth enabled users inn checking the luggage weight along with providing alternatives
for locking proximity.
b. Key Competitors and Their Positioning
The key competitors of the smarter luggage market include Away, Raden, Bluesmart,
Arlo Skye and G-Ro. The industry however, remains highly consolidated because of the
some major companies that not only come with tech-savvy features and newer technology
(Deshpande et al. 2015). Besides, the companies also work towards the enhancement of the
current product range along with the newer product development for gaining competitive

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advantage. Some of the characteristics each of the players for understanding their positioning
are as follows:

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Brand
Features
Away Raden Bluesmart G-Ro Arlo Skye
Price $225 -$295 $ 295-$ 395 $399 $399 $550
Built Water proof
lining,
Polycarbonate
shell and four
double casters
made from
polyurethane
Shell made of
Makrylon
polycarbonate
along with four
double casters
made of
polyurethane
The shell is ma
de from a hard
Makron
polycarbonate
Shell is made
from ballistic
nylon and has
two larger
diameter
wheel made
from rubber
Made of
aluminium
alloy, have
leather
handles and
two pairs of
lisof wheels
Quality Good Very Good Excellent Excellent Excellent
Battery 37w Lithium
ion and
removable
28w Lithium-
ion and
removable
Made of
10,000mAh
dual port inbuilt
battery with 30-
days back up
85w
removable
battery made
from Lithium-
polymer
Dual port
charger
which is
removable
Dimension 22”x14”x9” and
7 lbs
22”x14”x9” 22”x14”x9”, 9.4
lbs.
22”x14”x9”,
9.3 lbs
22”x15”x9”,
9.5 lbs.
Features Provide best
offers and
values. The
luggage is
available in ten
distinct colours
with
innumerable
accessories like
graphic stickers,
monograms and
garment bags.
The luggage
Smart luggage
is available in
matte finish,
sleek gloss and
chic colour
options like the
hunter green
lavender, and
the baby blue. It
is one of the
best-looking
smart luggage.
The hard-shell
Has a non-
removable
battery. It had
undeniable
design with a
fantastic
location based
app.
It has multiple
accessory
compartments,
four
positioned
telescopic
handle and a
zipped
expansion
gusset. The
large diameter
dual wheels
make the
The
aluminium
alloy shell
makes it
tougher.
There is a
portable
charger that
pops under
the handle.
The wheels
are also
quieter

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also have
smoother
wheels and
comes with a
sturdy handle
make s it
“unbreakable”
while the closer
containing a
reverse zip
makes it
waterproof
luggage
distinctive that
effortlessly
handles any
terrain. It does
have a heavy
weight but the
larger axle
less wheels
pushes the
centre of
gravity closer
and higher
towards the
middle
thereby
making it sure
footed.
compared to
the poly
urethane
ones.
Figure 1: Tabular Representation of the Key Players in the Smart Luggage Market
Source: (Bailey and Levin 2014)
c. Current Customer Attitudes/Behaviours in This Market
The connective technology segment is supposed to witness the growth of the smarter
luggage market because of the demand from customers in accessing a convenient luggage. It
also helps the users in getting insights of the gates, flight schedules and the currency
exchange. The connected smart luggage has a design that shut down automatically when
onboard and switches back on landing. However, the Asia Pacific ‘SmarterLugg’ market

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witnesses’ higher growth due to urbanization and the increase in the levels of air traffic
especially in the countries of Malaysia and Singapore (Dibb 2014). Various organizations
invest heavily on the technology since it helps them in offering better customer experience
and thereby undertaking the monitoring of the process depending on the various insights.
Moreover, the increasing demands for the sophisticated and different luggage products,
intelligent and trendy suitcase categories that have led to the escalation of the demand of the
various products.
d. Relevant Issues/ Opportunities including the Social and Ethical Issues
Opportunities:
Tagging, Tracking and Locating: The smart luggage is available with an embedded
display that helps in gathering data from either the mobile application of the airlines or the
own app of the manufacturer (Singh et al. 2016). The airline app then makes use of the check
in features and thereby synchronizes it with electronic tag thereby enabling the airline to drop
the luggage at the concerned airport. Besides, the own app of the manufacturer can be used
for the initiation and switching for contacting the information mode. The SmarterLugg tags
have immense potential. Moreover, the advanced IoT based solutions of the smarter luggage
assures the travellers that they never have to worry about the loss of their bags. The scanners
that use radio waves capture the radio frequency identification (RFID) technology used by
smart luggage(9). This enables in effective and simple tracking.
Ensured Security with Locks: The smart baggage locks comes with GPS facilities
that enables the travellers to ensure that their bag remains locked when loaded into the
aeroplane. The smarter baggage lock makes use of the Near Field Communication (NFC) and
a battery (Gubbi et al. 2013).

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Reduced Weight Issues: Ceilings on baggage weight has been one of the biggest
problems that the flyers face. The manufacturers of the ‘SmarterLugg’ have not only made
advancements in the design and the materials but also the other features that include the GPS
tracking (Gupta et al. 2017). Many players however takes hold and therefore put forward
designs with smarter inbuilt scale that would send an indication on the phone screen about the
weight of the luggage on pulling its handle and thereby meeting the baggage requirements of
the airlines.
Remote Control Enabled Smarter Wheels: For enhancing the travellers experience
Smart luggage are introduced that does not require a trailing since they have wheels that can
be controlled with the help of a remote(Alghadeir and Al-Sakran 2016).
Ethical Issues:
Airlines however overviews the concept of the smart luggage with arched brows.
Hence the Alaska, American and the Delta Airlines have made an announcement of banning
the smarter luggage that came with inbuilt batteries. The concern of the airline lay in the fact
that ignition of the lithium ion battery within a cargo hold might deactivate the automatic fire
suppression system of the aeroplane (Martin 2018). Airlines have therefore tried to simplify
the issue with broader approach by imposing a ban.
Part 3: Segmentation, Targeting and Positioning
a. Base of Segmentation Used
The market size of the smart luggage in the year 2016 was close to US$ 630 million.
However, it will have a predicted growth in terms of compound annual growth rate (CAGR)
of 16 percent between the year 2017 and 2024(Budd, Ryley and Ison 2014).

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Figure 2: Smart Luggage Market Size in US by Application in 2016 & 2024
Source: (Porter and Heppelmann 2014)
Market Segmentation based on Technology: Advancements in the technology have
helped the customers in enjoying the journey with a higher degree of comfort. Connective
technology with RFID witnesses higher growth. Therefore, the penetration of the IoT devices
in the Smart baggage will lead to its growing trend. In fact, the ‘SmarterLugg’ makes use of a
companion application with the help of a user (Flaherty 2014). The applications help in
providing necessary information regarding the flight schedules, destination and currency
exchange. Besides, the usage of the SIM cards for accessing internet provides enhanced
growth opportunities.
Market Segmentation based on Application: Thefts of the luggage along with
breaches of security have forced the customers in buying ‘SmarterLugg’ that remains
equipped with the remote locking and capabilities of proximity alert (Slotnick 2018). Besides,
the digital scaling in smart luggage systems helps in gaining the focus of the consumer as it
helps them in avoiding last minute hassles of passenger travel with overweight luggage. The