Clothes Make The Man And Vice Versa Marketing Essay

Published Date: 23 Mar 2015

Hilfiger decided to set higher price in Europe than in the U.S. because the customer's tastes and preferences are different in the two markets. Hilfiger has encountered some different national preferences. They do not mind to pay more $50 more than the highest priced Hilfiger's shirt in the U.S. So price strategy of Hilfiger must be set by focusing on the local responsiveness. Hilfiger has adjusted its product to the European preference for slimmer looking jeans and smaller logos on shirts. Hilfiger has created a line of more luxury items such as leather jackets and cashmere sweaters for Italian market. Moreover transportation cost of the product also makes an escalation in the Hilfiger's product price in European market.

When Hilfiger has higher price in European than in the United States, it may encounter with the problem of grey market. Lower price products in the U.S. are carried to European by other traders to sell and it may break the positioning strategy of Tommy Hilfiger brand in Europe market.

Hilfiger's CEO would like to harmonize the European and U.S. collections(clothing) by having Hilfiger move more upmarket (higher quality and prices) in the United States. What problems might the company face in doing this? What might it do to make this strategy successful?

If Hilfiger wants to move more upmarket in the United States, they may face with identifying its targeted customers of this new segmentation and adjusting all the marketing activities accordingly. They must understand customer's tastes and preferences of the segment of up scale market in the U.S to have suitable design. Also they have to understand the elasticity of demand to price for up scale fashion product. They should consider if the current distribution system is fit for the up scale fashion product or not. And finally there is a high possibility that the position of Tommy Hilfiger brand has been fixed in customer's mind at not a high level brand.

To make this strategy successful, Hilfiger should conduct a market research to identify who are the targeted customers of upscale market, what are their tastes and preferences, who are the competitors in this market segment. When it is understood clearly about the target markets, it should focus on a differentiation strategy to create a special and unique product, style and conception. To avoid preconception about Tommy Hilfiger brand position, a new brand name should be created. This is experienced through the case of Toyota and Lexus cars, Mabeline and Lancôme cosmetic. Since the new products belong to upscale fashion, Hilfiger must redesign the distribution channel network to fit to the new targeted customers.

Question 3: Make a list of clothing brands whose popularity has or has not sustained their popularity quality/image over time. Why have they changed or not? Can Hilfiger find any keys for success from these experiences? Please explain.

According to Lisa Lockwood (2007), there were many successful cases of clothing brand such as:

- Lacoste:

- Puma: it decided not to be so athletic.

- Burberry: a classic case of reinvention

- Coach: successfully reinvented itself with an upgrading of merchandise, more contemporary designs

However there were many clothing brands which faced up with problems and then failure such as: Levis, Gap, St John… Let me explain through the case from Levis with their failure of the Silvertab brand in 2001 according to Matt Haig (2003). In early of the years 2000s, Levis wanted to diversify its product to have more brands with different features for various different sub-segment in stead of only one traditional "red label" jean. The Silvertab products were launched into the market as the cheaper range of jean with orange tags. The Silvertab brand promoted in 2001 was the most hated in recent history. Ad age claimed it as "lacked branding". In this case, the lesson which Hilfiger can learn is if we want to diversify we should intensify, do not multiply. We must focus on our strength and do not look down our original brands.

Question 4: What strategies would you recommend for clothing companies outside France and Italy to overcome the positive images of " made in France" and "made in Italy"? What strategy may Hilfiger use or follow?

Followings are some recommendations for clothing companies outside France and Italy to overcome the positive images of "made in France" and "made in Italy":

- Establish a design center in France or Italy so that the product will be described as "designed in France" or "design in Italy".

- Use some famous persons in Europe such as movie stars or famous singers to advertise for our products.

- We may produce some components with lower costs in another countries and then transfer the finishing components to France and Italy to complete the finish products.

For the case of Hilfiger, they have a certain market share in European market, so they should strengthen the advertising and promotion activities in Europe by getting more and more famous persons using their products. Hilfiger should also consider to invest production facilities in France or Italy to take advantage of the positive image of "made in France" or "made in Italy" .

REFERENCE: Daniels, Radebaugh, Sullivan (2009). International Business

http://bakerretail.wharton.upenn.edu/documents/TheInsandOutsofBrandReinvention.doc