Hilfiger decided to put higher monetary value in Europe than in the U.S. because the client ‘s gustatory sensations and penchants are different in the two markets. Hilfiger has encountered some different national penchants. They do non mind to pay more $ 50 more than the highest priced Hilfiger ‘s shirt in the U.S. So monetary value scheme of Hilfiger must be set by concentrating on the local reactivity. Hilfiger has adjusted its merchandise to the European penchant for slimmer looking denims and smaller Son on shirts. Hilfiger has created a line of more luxury points such as leather jackets and cashmere jumpers for Italian market. Furthermore transit cost of the merchandise besides makes an escalation in the Hilfiger ‘s merchandise monetary value in European market.
When Hilfiger has higher monetary value in European than in the United States, it may meet with the job of Grey market. Lower monetary value merchandises in the U.S. are carried to European by other bargainers to sell and it may interrupt the positioning scheme of Tommy Hilfiger trade name in Europe market.
Hilfiger ‘s CEO would wish to harmonise the European and U.S. aggregations ( dressing ) by holding Hilfiger travel more upmarket ( higher quality and monetary values ) in the United States. What jobs might the company face in making this? What might it make to do this scheme successful?
If Hilfiger wants to travel more upmarket in the United States, they may confront with placing its targeted clients of this new cleavage and seting all the selling activities consequently. They must understand client ‘s gustatory sensations and penchants of the section of up graduated table market in the U.S to hold suited design. Besides they have to understand the snap of demand to monetary value for up scale manner merchandise. They should see if the current distribution system is fit for the up scale manner merchandise or non. And eventually there is a high possibility that the place of Tommy Hilfiger trade name has been fixed in client ‘s head at non a high degree trade name.
To do this scheme successful, Hilfiger should carry on a market research to place who are the targeted clients of upscale market, what are their gustatory sensations and penchants, who are the rivals in this market section. When it is understood clearly about the mark markets, it should concentrate on a distinction scheme to make a particular and alone merchandise, manner and construct. To avoid prepossession about Tommy Hilfiger trade name place, a new trade name name should be created. This is experienced through the instance of Toyota and Lexus autos, Mabeline and Lancome cosmetic. Since the new merchandises belong to upscale manner, Hilfiger must redesign the distribution channel web to suit to the new targeted clients.
Question 3: Make a list of dressing trade names whose popularity has or has non sustained their popularity quality/image over clip. Why have they changed or non? Can Hilfiger happen any keys for success from these experiences? Please explain.
Harmonizing to Lisa Lockwood ( 2007 ) , there were many successful instances of dressing trade name such as:
– Lacoste:
– Cougar: it decided non to be so athletic.
– Burberry: a authoritative instance of reinvention
– Coach: successfully reinvented itself with an upgrading of ware, more modern-day designs
However there were many vesture trade names which faced up with jobs and so failure such as: Levis, Gap, St Johnaˆ¦ Let me explicate through the instance from Levis with their failure of the Silvertab trade name in 2001 harmonizing to Matt Haig ( 2003 ) . In early of the old ages 2000s, Levis wanted to diversify its merchandise to hold more trade names with different characteristics for assorted different sub-segment in position of merely one traditional “ ruddy label ” denim. The Silvertab merchandises were launched into the market as the cheaper scope of denim with orange tickets. The Silvertab trade name promoted in 2001 was the most hated in recent history. Ad age claimed it as “ lacked stigmatization ” . In this instance, the lesson which Hilfiger can larn is if we want to diversify we should escalate, make non multiply. We must concentrate on our strength and do non look down our original trade names.
Question 4: What schemes would you urge for vesture companies outside France and Italy to get the better of the positive images of “ made in France ” and “ made in Italy ” ? What scheme may Hilfiger usage or follow?
Followings are some recommendations for vesture companies outside France and Italy to get the better of the positive images of “ made in France ” and “ made in Italy ” :
– Establish a design centre in France or Italy so that the merchandise will be described as “ designed in France ” or “ design in Italy ” .
– Use some celebrated individuals in Europe such as film stars or celebrated vocalists to publicize for our merchandises.
– We may bring forth some constituents with lower costs in another states and so reassign the finishing constituents to France and Italy to finish the coating merchandises.
For the instance of Hilfiger, they have a certain market portion in European market, so they should beef up the advertisement and publicity activities in Europe by acquiring more and more celebrated individuals utilizing their merchandises. Hilfiger should besides see to put production installations in France or Italy to take advantage of the positive image of “ made in France ” or “ made in Italy ” .
Mention: Daniels, Radebaugh, Sullivan ( 2009 ) . International Business
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