Tommy Hilfiger
“Iconic Nostalgia”
ALMUDENA SOLANO BA FA S H I O N M A R K E T I N G & C O M M U N I CAT I O N , LEVEL 4, 2018-2019 4 FA M K 0 0 4 C - C O M M U N I CAT I O N T E C H N I Q U E S & S T R AT E G I E S 1 CWK1 TERESA BUHIGAS WO R D CO U N T: 2987
y r a m m u s e v i Execut Tommy Hilfiger is a brand that needs to become a beloved brand by the younger generations. To reach that, a capsule collection is proposed. This collection is called “Iconic Nostalgia” which is based on iconic moments that Tommy Hilfiger
has gone through with some garments. Each capsule garment will only be available for a certain time. There will be a big collaboration between the brand and several influencers, models and artists.
s t n e t Con COMMUNICATION SWOT CONCLUSIONS ADIDAS FUNCTIONAL BENCHMARK COMMUNICATION SWOT CONCLUSIONS COMMUNICATION STRATEGY OBJECTIVES TARGET POSITIONING PROPOSAL UNIQUE SELLING PROPOSITION COMMUNICATION MIX TIMELINE + COMMUNICATION TACTICS COMMUNICATION BUDGET KEY BRIEFINGS ANNEXE
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Communication Swot analysis
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SWOT A N A LY S I S
• • • • • • • •
STRENGTHS Strong brand heritage Exclusive products Loyal customers Strong brand ambassador Influential celebrities Strong Campaigns Wide variety of communication channels (social media) New technology adaption WEAKNESSES • • • • •
No brand recognition Brand image is not cohesive Irrelevant interior design for stores Repetitive content on their online platforms Absent in outdoor advertisement
OPPORTUNITIES • • • • •
Product and services expansion International growing market More tech-driven industry Social media engagement Young demographics T H R E AT S • • •
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Intense competition from international brands See now buy now as a FAD More social media posts from competitors Competitors like Calvin Klein are more accessible
S
t wo
i o s n u l s c n co Tommy Hilfiger has great advantages that should be taken into account. Tommy has always had a great brand heritage and strong values that are coherent with how the brand performs among its competitors. The best thing that Tommy should do, is taking advantage of their social media and develop different content for every platform, in order to have more variety and therefore more engagement. Tom-
my should take in consideration that competitors like Calvin Klein are more accessible for consumers therefore, Tommy should create a stronger brand image. Also, there is a very little outdoor advertisement and this is something that they have to take care of because they are losing brand recognition.
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y g e t a r t s e l u s p a c s Adida The capsule strategy is a method of communication with the goal of giving the consumer an exclusive or limited edition product. This strategy is based on announcing the date of the worldwide launch. This usually is posted on the social media of the brand in many different ways. For instance, a post on Instagram, Facebook, Twitter among others. These capsule collections were popularized in the 1980s by the brand DKNY. The goal was to launch a capsule wardrobe in which only the best pieces of the collection would be included. In the case of this proposal, only the most iconic pieces throughout the history of Tommy Hilfiger will be launched. This method is still used by some brands in the fashion industry. One of the brands that have applied this strategy with success is Adidas. This brand has done several capsule collections by now. The latest one is along with Pharrell Williams. This collection, is in collaboration with the singer’s brand Billionaire’s Boy’s Club. Their strategy is based on creating a pair of shoes with Pharrell’s and Adidas’ touch and designs. They then announce the product of both of their social media accounts (mostly Instagram). For this collection, they decided to release
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Adidas functional benchmark
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ADIDAS BENCHMARK
BBC X ADIDAS NMD HU Capsule collection
Their strategy is based on creating a pair of shoes with Pharrell’s and Adidas’ touch and designs. They then announce the product of both of their social media accounts (mostly Instagram). For this collection they decided to exclusively release the green design on BBC’s webpage and the blue design on Adidas’ webpage. This method has worked in the past for both companies because they get the same amount of traffic on both webpages. They also do contests to win one of the pairs of the capsule collection. For instance, in this post the consumers have to buy a sundae from BBC’s Icecream Chill Zone truck in order to win a pair. In this case, there were only six winners and they sold the sundaes in less than five minutes. Another important thing to highlight is that this collection is not easily found or visible at the main page of the Adidas website. The consumers can find it by looking directly for the name of this collection. When they are on the capsule’s page they are asked if they want to get it on their radar, meaning if they want a reminder of when the collection will be released. In order to sign up, they must enter an email, be older than thirteen years old and specify gender. After signing up, consumers receive an email with all the details.
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This method does not end here. After releasing just a certain amount of pairs, they release a second collection that is not an exclusive or limited edition but is still inspired on the original capsule collection. This second collection is cheaper and the availability is wider. Adidas does this in order to give the “same” opportunity of purchasing to all its customers. The capsule collection method has worked for Adidas. They have had an increase in sales for the last 2 years since the first capsule collection with David Beckham was launched. Adidas is doing one or two capsule collections a year with celebrities not only from the sports world but as in the case of the latest collection, from the music world with Pharrell Williams.
Pharrell Williams
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Communication strategy
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PREVIOUS INVESTIGATION
OBJEC
HIGH PRICE
Respositioning
HIGH QUALITY
LOW PRICE
LOW QUALITY
Considering that Ralph Lauren and Giorgio Armani have higher prices than Tommy Hilfiger and that only Giorgio Armani has better quality, Tommy needs to be repositioned as a great quality designer brand that equals the high price. Tommy Hilfiger has good awareness but it is not making it to the purchase step on the buyer’s journey and the objective of this proposal is to improve on that area.
TIVES
Awareness
The aim of this project is to reshape Tommy Hilfiger as a beloved brand. As a brand that is classic but still mainstream. Tommy will be on the top choices when people decide to go shopping. This project will generate awareness about the brand and it will attract many new consumers that Tommy had not targeted before. This awareness will be made through the social media platform of Instagram, in a series of posts and Insta stories about the capsule collection.
Kpi’s
Tommy Hilfiger currently has 11.3 million followers on Instagram. With this social media platform being the main communication channel, it is expected to gain from 300,000 to 500,000 followers on the first year after the capsule collection is released. In order to do this, a series of interviews, clips, pictures and Q&A’s will be uploaded to the brand’s Insta stories. Also, pictures and videos from each capsule collection will be uploaded daily. To make it even more interesting, the reveal of each capsule artist will be announced with a post on a specific date and time.
TARGET ANALYSIS
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CONSUMERS Young men and women from 17 to 25 years old. Buy occasionally from Tommy but frequents stores like Zara, Mango, Massimo Dutty, Urban Outfitters or Brandy Melville. They only notice Tommy advertisements for collaborations. For instance, ZendayaxTommy or GigixTommy. When they buy something from Tommy, that garment is not considered a priority in their wardrobe, it is not considered special and they do not stay loyal to the brand. This target is looking for a much richer story and a stronger image in Tommy Hilfiger. They also feel like Tommy Hilfiger’s style is very repetitive and that it does not step out of the box design wise.
Communication Target INFLUENCERS
For the first year of the capsule collection, the following influencers, artists and models will be hired: • Paris Jackson • Cara Delevigne • Prince Jackson • Kate Moss • Lila Moss • Naomi Campbell • Pharrell Williams • Snoop Dogg • Kendrick Lamar
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PRESS
Harpers Bazaar Spain BOF Spain Elle Spain Vogue Spain TMZ Spain El País i-D Spain GQ Spain
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Positioning proposal
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The current Tommy Hilfiger is low on the main aspects that its main competitors have. It is clear to see that it does not have many iconic products besides a few shirts with the embroidered logo on them. It is also low on the mainstream aspect because it is not. Among the younger segment (17-25) it is preferred to buy at Ralph Lauren before than buying Tommy because it is not mainstream enough. Also, Tommy does not have a strong contemporary family image. This means that they are still stuck in the typical American family, while other brands consider a friend as family. The concept of family is totally different now and the new Tommy will adapt to it. On the other hand, Hilfiger is high on the aspect of own details. Tommy has always been recognized with the colors blue, white and red. Also, they always have the embroidered logo on the t-shirts or the pullovers with the big logo printed on them. The highest aspect that Tommy Hilfiger has is the American Dream. This would be the only aspect in which Tommy does not need work on very much since people already perceive it with very American roots and history. The competitors are ahead of Tommy in some aspects but not in all of them, this means we just have to focus on how can we improve based on our need not on what the competitors are doing.
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UNIQUE SELLING PROPOSITION BRAND PERSONA
Who am I? I am a 23 year old woman living in New York City. I graduated from Graphic design at Arkansas University. Nowadays, I design webpages and control social media for fashion companies. My mom is a lawyer and my dad a doctor. I have 2 younger brothers and a Golden Retriever. 3 reasons to engage with you: • She likes trends • Has economic power • Likes mainstream 3 reasons not to engage with you: • High volatility • Expects a lot from brands • Needs consistency Audience segments My interests: socialising with friends eating out, shopping and blogging. My environment: music festivals, healthy restaurants, fitness centres. My personality: nostalgic style, charismatic, enthusiastic, respectful, empathic, fearless and passionate. My skills: photography, designing, speaking in public, video editing. My dreams: travel the world, have my own company, buy her own apartment.
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Who am I? I am a 25 year old man living in Chicago. I am an economist graduated from the University of Chicago. I now work for Hyatt Hotels and earn $25,000+ a year. I have a younger brother still in high school. He lives with my mother and stepfather who are both doctors. I also have a German Shepherd. 3 reasons to engage with you: • He likes to dress nicely • He portrays a good image • His friends look up to him 3 reasons not to engage with you: • He does not like going shopping • Has other expenses • Works too much Audience segments My interests: economy fairs, hanging out with friends, technologic T.V. shows, invest in the stock. My environment: economists, meetings, family reunions, pubs, lake houses. My personality: worker, respectful, extrovert, funny, vain. My skills: mathematics, socializing, creativity, investment, make friends easily, public speaking. My dreams: have a big family, travel to Italy, get married, have his own company, buy a house.
F E AT U R E S A N D AT T R I B U T E S Values: Innovation, design, elegance, family, visibility, comfortability, exclusivity. Lifestyle: young (25-35) people who are recent college graduates, come from wealthy classic American families, enjoy spending time with their friends, travelling, eating at expensive restaurants and exercising. Designer: All clothes are designed by the main designer Tommy Hilfiger. He created his own brand in 1985 and since then, he has been designing for it. Product:
EMOTIONAL BENEFITS American essence and soul in every garment made. Patriot spirit. American designer.
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BRAND IDEA Classic American preppy style.
Brand idea Brand persona Emotional benefits Functional benefits Features & attributes
FUNCTIONAL BENEFITS Comfortable and high-quality clothing with nice trendy casual designs.
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VISUAL CODES
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VERBAL CODES
#IconicThrowback #IconicNostalgia #NostalgicTommy #IconicTommy Male
voice, deep but
soft pitch. spectfully
Speaks reand
proper.
very
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Communication mix
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CAPSULE COLLECTION
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Snoop Dogg
A$ap Rocky
Bugs Bonny
Michael Jackson
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Kate Moss
Capsule collect “Iconic
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Britney Spears
Rosie Perez
Aaliyah
Scarlett Johanson
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Bruno Mars
tion c nostalgia”
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HOW?
Buyer’s EMOTIONAL AWARENES S Advertisements for each iconic garment will be launched. These ads will be inspired by a time machine. The phrase “What if you could relive the best moments of your life? Tommy Hilfiger is.” is said in each of the ads for the entire capsule collection. Pictures of each artist wearing the garment will be posted on Tommy Hilfiger’s social media 6 months prior to the launch. Instagram will have a priority when it comes to posting online. A highlight Instagram story will be created for each artist as the time of the launch approaches. If the artist of the capsule garment is still alive, he or she will be asked to collaborate for a photoshoot with the garment and for a series of videos to be released on social media. This artist will be modelling the garment and will also do a ‘relaxed interview’ in which the artist will talk about the exact moment when they were wearing the garment. If the artist of the capsule garment already passed away, old pictures of him or her will be used. Instead of the interview, a video of the artist of their most iconic moments like concerts, movies or campaigns, will be released. This video will be a tribute to the artist and will be inspired by nostalgia.
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INTERESTING Nostalgia is a big macrotrend at the moment and this capsule collection is based on the most iconic moments of Tommy and the majority are from years ago. Vintage garments will be interesting for the younger segment (millennials) and that will help Tommy to become mainstream. One garment of the capsule collection can only be purchased with the online registration of 2 QR codes. QR codes are images with digital information in a specific design. None of these codes is ever repeated. The use of these codes will bring technology into the brand. These codes will be found on the label of any other piece of clothing at the store. This will also increase the purchase of other garments. Also, what makes this capsule collection interesting, is that every garment is limited edition and each includes a certificate of authentication that can only be downloaded by scanning the QR code located on the inside label of the capsule garment. As said before, none of the QRs is the same and the certificates can be downloaded only once. To make this capsule collection even more exclusive, the pieces will only be released for one week. These garments can only be bought online.
journey CONSIDER To make the capsule collection more dynamic and exciting, one of the garments of each iconic moment will have a price hidden in the QR. Tommy will collaborate with the capsule artists and influencers in order to give the lucky winner a night at the “Iconic Nostalgia” party. The objective of this party is to gather influencers and artists to reach younger and more alternative segments. At this party, all attendees must wear a Tommy Hilfiger vintage piece. The party will be made until the last piece of the capsule collection is launched. There will be 10 lucky winners that will be attending the party, one for each capsule garment. Also, all expenses will be paid for them. It is a great opportunity for the winners to meet their favorite celebrities.
PURCHASE/ REPURCHASE The main objective is that people purchase Tommy Hilfiger. Therefore, the more QRs they register, the higher they will be located on the waiting list to purchase the capsule collection. This will encourage customers to buy other garments at the store in order to collect more QRs. Also, the more expensive the garments are, they will have gold QRs which count as 2 QRs when they are registered. QRs are only going to be located on garments which price is 25$ or above. Consumers cannot scan more than 5 QRs per day on the website. If buyers achieve to buy the 10 limited edition pieces, they will be invited to all future Tommy parties, openings or events. This person will become part of the Hilfiger family. They will also be able to relate with Tommy himself at these events. To make it even more special, they will be given a one-of-a-kind customized jacket signed by all Tommy ambassadors and artists from the capsules.
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WHY THESE PEOPLE?
l e a h c i M son k c a J
WHY HIM? Michael Jackson has always been the king of pop. He is one of the most iconic artists in the music world. In this picture, Michael is wearing a Tommy Hilfiger pullover for a photo shoot for Vibe magazine. This moment was crucial for Tommy Hilfiger and surely helped the brand evolve in the music segment. Jackson is a great choice to start this communication campaign because of his fame among people of all ages until this day. He is very admired and his followers will certainly buy this pullover.
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e t a K ss o M
WHY HER? Kate Moss is one of the most iconic models of all times. In this picture, she is wearing one of the most sold bomber jackets in the 1997 Tommy Hilfiger fashion show while the singer Treach rapped behind her. Bomber jackets are mainstream at the moment and will continue to be for a year or two more. It is a great opportunity to make this bomber jacket mainstream and to approach millennials with the nostalgia macrotrend.
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WHY THESE PEOPLE?
p oo Sn gg o D
WHY HIM? Snoop Dogg wore this pullover at a presentation for SNL in 1994. This was definitely an iconic moment for Tommy because it is one of the first approaches the brand had with the rap and music community. People who listen to him are not buyers from Tommy, so seeing that the brand is selling something worn by Snoop Dogg will encourage them to give the brand a try and eventually purchase.
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p a $ A y k c o R
WHY HIM? As said before, Tommy is now linked to the rap environment but not enough. A$AP Rocky is a mainstream rapper at the moment and it is a great option for the capsule collection because Tommy Hilfiger needs to become more mainstream and not just a brand that exists but a brand that people purchase. Rap followers usually never purchase any Tommy garments because they feel it does not go with their style, but seeing rappers like A$AP wearing Tommy, will definitely encourage them to buy.
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WHY THESE PEOPLE?
s g Bu y n n Bu
WHY HIM? Bugs Bunny is one of the most iconic characters from the series Loony Toons. This amazing character represents many people’s childhood. It is a great option for the capsule collection because older targets and even younger as well, feel connected to Bugs Bunny in a certain way and having the opportunity to wear such an iconic sweater. This stuffed animal was released by Studio Store in 1996 therefore, it will be very nostalgic for the older target to be able to buy this sweater.
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o n u r B s r a M
WHY HIM? Bruno Mars is one of the top pop artists at the moment. People that like his alternative style will feel intrigued about this pullover. Bruno gives the clothing his own personal style and people who like to dress in a more alternative way will certainly buy this pullover. He can give Tommy Hilfiger a more fresh and different feel, that is one of the main reasons he is in this capsule line. Bruno Mars is mainstream at the moment and that is where Tommy Hilfiger needs to improve.
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WHY THESE PEOPLE?
y e n t i r B s r a e p S
WHY HER? This denim jumper was used by Britney in her “Baby one more time” tour sponsored by Tommy Hilfiger. Yet again, another opportunity to approach a different segment. This segment loves pop music and vintage clothing but with modern styles. This jumper is vintage but still has enough uniqueness to be appealing to this segment. Another very important fact is that Britney is like family. We need to erase the concept of the traditional American family and turn it into a contemporary family in which anyone can be considered part of it.
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e i s o R z e r e P
WHY HER? Rosie Perez is an actress and choreographer. She is a great option for the capsule collection because she has been a Tommy supporter since almost the very beginning. The pullover she is wearing in this picture is from 1994. She certainly is a role model for women activists. This is important because Tommy Hilfiger needs to show his support for women.
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WHY THESE PEOPLE?
h a aliy
A
WHY HER? Aaliyah was the worldwide image fo Tommy in 1997. She was a very talented RnB singer and this campaign was iconic for Tommy because Aaliyah was in her top moment and had many followers. This would not be a complete capsule without a garment that Aaliyah wore. Again, a jumper was chosen because it is very likely to become mainstream in the next years.
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tt e l r a c S n o s n a h o J
WHY HER? Scarlett Johanson recently appeared in the movie Avengers: end game. She is a talented actress that is very well known at the moment. She was also chosen for the capsule collection because she has always been part of the Tommy Hilfiger family since the beginning. Also, the style of the jacket she is wearing in this picture is mainstream at the moment and it is a great option to finish the capsule collection. On top, her appearance on Avengers will catch the attention of an audience that does not buy at Tommy very often or does not buy at all.
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Timeline of “Ic 1 YEAR
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1 YEAR
conic nostalgia” 1 YEAR
4 MONTHS
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Process of year 1
MICHAEL JACKSON
K AT E MOSS
SNOOP DOGG
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Paris Jackson: She will do an interview for IGTV which will be uploaded in January. Cara Delevigne: She will do a video for IGTV dancing, posing and talking about reliving the best moments in life, which will be uploaded in February. Prince Jackson: He will do an interview for YouTube, which will be uploaded in March. This capsule collection will launch on April 22nd and will be available until April 29th. Countdown week starts on April 15th. All of them do photoshoots with the garments and a video for countdown week.
Kate Moss: She will do an anonymous interview for IGTV which will be uploaded in May. Lila Moss: She will do a video for IGTV dancing, posing and talking about reliving the best moments in life, which will be uploaded in February. Naomi Campbell: She will do an interview for YouTube, which will be uploaded in July. This capsule collection will launch on August 23rd and will be available until August 30th. Countdown week starts on August 16th. All of them do photoshoots with the garments and a video for countdown week.
Pharrell Williams: He will do a video for IGTV dancing, posing and talking about reliving the best moments in life, which will be uploaded in September. Snoop Dogg: He will do an anonymous interview for IGTV which will be uploaded in October. Kendrick Lamar: He will do an interview for YouTube, which will be uploaded in November. The capsule collection will launch on December 23rd and will be available until December 30th. Countdown week starts on December 16th. All of them do photoshoots with the garments and a video for countdown week.
During the months before each launch, videos of the selected influencers or the capsule artist will be posted on Instagram announcing the capsule line and hints about the capsule artist. The countdown will be done one week before each launch. Only during countdown week, photoshoots with the garments will be posted. Also, the capsule artist will remain a secret until this week but consumers will receive hints during the teaser months. These hints will mostly be features of each capsule artist. If the capsule artist is alive, the interviews for IGTV will be done anonymously until the big reveal which is a day before the countdown week. The interviews will have the format of a chronicle, and they will be uploaded equally on the selected month. There will also be an outdoor advertisement from the photoshoots and the campaign in general. Furthermore, Facebook ads will appear with the help of Google Analytics.
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t e g d u B n o i t a c i n ommu
C
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Outdoor advertising Facebook ads Hire artists, influencers, models Producing interview videos for IGTV and YouTube Produce countdown chronicle videos Photoshoots Producing the garments Capsule parties Producing QR codes
KEY BRIEFINGS
1 . It is fundamental to hire the previously mentioned influencers, artists and models because the capsule collection will be based on them or on their relatives. 2 . It is complementary to throw a party for consumers who win the QR code’s party. 3 . It is crucial to release interviews, videos and pictures of the campaign on Tommy Hilfiger’s social media platforms.
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Annexe
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TOMMY HILFIGER Internal analysis COMPANY ANALYSIS Results: $7.4 billion in 2017 From 2014-2015: 4% growth From 2015-2016: 4% growth From 2016-2017:11% growth • • • • • • • • • • • • • • •
History: Tommy Hilfiger was founded in 1985 by Thomas Jacob Hilfiger. Before, he founder The People’s Place in 1977 but was declared on bankruptcy. In 1984 Mohan Murjani contacted Thomas to design a line for his firm. After Tommy Hilfiger was founded, it reached $70 million retail sales. A women’s line debuted in over 400 department stores in 1996. This same year Tommy Hilfiger had a scandal about african american and hispanic people. This also involved being kicked out of Oprah’s show. None of these was true. Earnings in sales around $ 1.9 billion. Sponsors the exhibition of the Met Costume Institute for its exhibition "Rock Style" next to a catalog with the title of the same name. Later in 1998, the brand launched a bed and bath line and also acquired a portion of Pepe Jeans USA. In 1999 Rapper Snoop Dogg appeared on the Saturday Night Live show with a signature oversize sweater making Hilfiger's popularity skyrocket. Hilfiger Denim is born. In 2001 Apax Partners acquired the company. It was discontinued “by Tommy Hilfiger”. Open the largest flagship store so far, on Fifth Avenue. In 2011 Tommy Hilfiger expands to South America, Canada and Tokyo. In 2016, Thomas published his memoir “American Dreamer”. Nowadays, Tommy Hilfiger stays afloat.
Target: Hilfiger collection - 25 and 40 years old. - Characteristics: sophisticated, modern, confident, relaxed Tommy Hilfiger tailored - 25 and 40 years old. - Characteristics: sharp & sophisticated style, casual, classic Tommy Hilfiger - 25 and 40 years old. - Characteristics: cool spirit, individuality, optimism - Annual household income of over $50,000. - The average unit retail price for the Tommy Hilfiger brand is ~$120. Tommy Hilfiger jeans - 18 and 30 years old.
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• - Characteristics: modern, casual edge, youthful energy, • - Annual household income of $30,000–$50,000. • - The average retail price for the Hilfiger Denim brand is ~$80. Competitive strategy • Differentiation: Cool American style. The Tommy Hilfiger Corporation is dedicated to the living spirit of the American Dream. Sustainable and open to embrace different races (INCOHERENT). Product assortment: Sportswear for men and women, tailored-clothing for men, denim, footwear, bags, fragrances, eyewear and watches. • Differentiation Focus: For upper-segment young men and women. Iconic AMERICAN brand, delivering the upper-classes american dream. • Cost Leadership: Tommy prices vary depending on region and season. Much of the product goes in sale at the beginning and end of season. Prices: Provide reasonable value at a lower price. Prices vary from 65-300. Competitive advantage: Sells its products both to consumers and retailers (departments stores, etc…) so it has more chances to be bought. They pursue growth channels, with focus on e-commerce. Competitive strategy: Product: Create different product ranges or collaborations that are more approachable to their target. Modernize their clothes, keeping their classic american style, but making them more cool and trendy. Communication: Enhance the display in-store of the collaborations they do, because stores are perceived as quiet and boring. Remodel stores (more interactive, young and fun). Sell the American Dream in a modern way. Do more events, connect with people and be more engaging. Positioning proposal: Premium, but accessible brand. The brand positioned its designs as “classic American cool with a preppy twist” through its marketing campaigns. Promotional marketing campaigns are executed through TV commercials, fashion shows, billboards, and digital initiatives. Its main competitor is Ralph Lauren. It has a similar brand positioning and target consumer base. Message strategy: According to their website, the message that the brand wants to communicate is: “Celebrating the essence of classic American cool style with a preppy twist.” By observing the interviews we can see that people associate the brand with a preppy and classic style, but not really with the “american cool style”.
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Besides that, even though they are trying to attract the young audience, they are not being very successful, since the young generations do not perceive Tommy as a brand suitable for their age. They are not paying attention to the brand since it does not have what they consider an attractive store or interesting social media channels. Communication: Tommy Hilfiger spent over $180 million on global marketing and communications efforts in 2017 Beginning in Spring 2018, TOMMY HILFIGER embarked on a multi-year partnership with fourtime Formula One® World Champions Mercedes-AMG Petronas Motorsport and four-time Formula One® World Champion Lewis Hamilton for TOMMY HILFIGER menswear. Re-imagine the store of the future: Regent Street flagship store in London - Features include product customization, digital walls and “smart mirrors,” which recognize items via RFID tracking, suggest inspiring looks and allow consumers to request styles directly to the fitting room. TOMMYXZENDAYA: 2019 Collaboration/ Runway Show. Diversity (curvy + differences races) in runway cast and lookbook pictures. Celebrity collaborations: To attract younger consumers (part of the marketing mix not target, message analysis, part of the message strategy) Linked to a specific collection or as the whole brand? Do they fit the brand? do they follow some criteria? Gigi Hadid: co-designed capsule pieces for the brand (2017) Zendaya: co-designed capsule pieces for the brand The Chainsmokers: brand ambassadors (2017) Shawn Yue (Hong Kong actor and singer): to expand the presence of Tommy in Asia (2017) Hailey Baldwin: brand ambassador (2018) Winnie Harlow (activist): brand ambassador (2018) Communication between other brands: Same Instagram Not clear on the website The collaborations with celebrities/influencers where they co-design some pieces are capsule collections, they are not part of the main collection. External analysis Pest analysis Political Factors: 1. Non-government organizations: Protest through activist movements that play an important role in politics. Tommy Hilfiger should collaborate with these organizations so that it can contribute with the community goals as well as with corporate goals.
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2. Political stability in the different markets: Tommy Hilfiger operates in lots of countries so it has to make policies for each country based on the industry specific requirements. Given the recent rise in populism across the world is believed that Tommy Hilfiger can see similar trends and may lead to greater instability in its existing markets. 3. Taxation policies: Over the last two decades Tommy Hilfiger has benefitted from lower taxation policies throughout the western hemisphere. It has resulted in high profits and increasing spending in the research and development. 4. Importance of local governments in Strategy and Execution: Local government plays an important role in policy setting and business environment regulations in the sector. Economic Factors: 1. Exchange rate: Based On the data, the volatile exchange rate can impact Tommy Hilfiger investment plans not only in the short term but also in the long one. 2. Skill level of workforce in the present market: Tommy Hilfiger can leverage good skill level of employees in the present market to not only improve services in strategy and execution but also leverage this skills to create global opportunities. 3. Economic Cycles: The performance of Tommy Hilfiger is correlated to the economic performance of the country it is present in. 4. Government intervention: In the strategy and execution sector impact in the fortunes of the Tommy Hilfiger and its competitors. Social Factors: 1. Education level: The education level is high in the Tommy Hilfiger existing markets. 2. Leisure interests: The customers that Tommy Hilfiger targets give a very high preferences to experiential products and services. 3. Migration: The broader attitude towards migration is negative in the market Tommy Hilfiger is present. This can impact Hilfiger Tommy ability to bring international talent to manage operations in the country. Technological Factors: 1. 5G and its potential: Tommy Hilfiger has control the development and enhancement of user experience with increasing speed and access. 2. Latest technology focused on competitors of Tommy Hilfiger: This can provide a good insight into what the competitors are thinking and how the industry business model future will be.
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3. Intellectual property rights: If Tommy Hilfiger and the sector as whole will have higher safeguards for IPR. Technological innovation is fast disrupting the supply chain model of Tommy Hilfiger as it is providing greater access to information to channel partners, leading to higher profit sharing. MARKET ANALYSIS
Questionnaire: 1. Do you enjoy going shopping? 2. How often do you go shopping? 3. What stores do you usually visit? 4. On what type of garment are you willing to spend the most? 5. On what time of the year you spend the most on shopping? 6. How long do you usually stay at a store? 7. What brands besides Zara, Bershka, Stradivarius, H&M and Pull and Bear do you buy? 8. Do you spend more money on different brands than the ones previously mentioned? 9. Do you remember their advertisements/campaigns? 10. What advertisements/campaigns have you liked the most? 11. SHOW MOODBOARD BEFORE QUESTION 11 (prendas no tipicas que se pueda sacar partido, TOMMY)
12. What garments would you buy? 13. Which of these brands do you know: Brownie, Subdued, Tommy Hilfiger, Urban Outfitters, Anthropology, Brandy Melville, Ralph Lauren. 14. Which ones have you bought? 15. What do you buy? 16. (If not mention Tommy) Why haven’t you bought at Tommy? 17. Have you seen any advertisement from Tommy recently? 18. Do you like them? 19. Why or why not? 20. What do you think their price range is? 21. What do you think about Tommy? 22. What 3 words would describe Tommy? 23. Why or why not? 24. What brands do you prefer instead? 25. What brand do you think is the most similar to Tommy? 26. What type of person would wear Tommy? 27. What lifestyle does this person has? 28. What would you change about Tommy Hilfiger? 29. Which brands do you follow on Instagram? 30. What influencers do follow and check almost daily on Instagram? 31. What interests you the most? 32. What would you like to learn about a brand? 54 Communication proposal
Answers: MALE 18 YEARS 1. Yes, I do 2. Twice per month 3. Abercrombie, Lacoste, Mango, Levi’s, Massimo Dutti and Ralph Lauren 4. Jeans, trousers and shoes 5. Spring and Autumn 6. 30 minutes 7. I do not buy in those kind of stores because I don’t like fast-fashion, I prefer good quality and timeless clothing I can wear no matter the trends going on. However, I like Mango, because of its simplicity. 8. Yes 9. The stunning ones. 10. Perfume campaigns are my favorite. 11. 12 - Tommy, UO, Ralph Lauren. 13. The ones mentioned above. 14. Clothing and shoes. 15. 16. Haven’t seen any incredible campaign since Gigi x Tommy. 17. I did. 18. It is a clothing brand I like. 19. It’s higher than regular stores. 20. It is worthwhile. 21. Versatile, young and fun. 22. I would replace Tommy with Lacoste or Ralph Lauren 23. Lacoste is kind of similar. 24. From a skater to someone who wants a nice and fitted suit. 25. Any lifestyle. 26. Sometimes their clothes can be too extravagant for my cup of tea. Some of their designs can be easily copied. 27. On Instagram I follow the most famous designers and brands such as Louis Vuitton, Loro Piana or Tom Ford. 28. Song of Style is my favorite in terms of fashion sense. Carlo Cestini is one of my favorite too and Negin Mirsalehi, for being a very successful and young entrepreneur. 29. New approaches to fashion (even though I am quite reluctant when doing it myself). 30. I would like to know about the craftsmanship and the economics and figures behind these companies. FEMALE 20 YEARS 1. Mostly 2. Once a month 3. Urban outfitters and Zara 4. Jackets 5. Winter 6. 1 hour 7. Urban outfitters, Adidas, Abercrombie, Hollister, Nike, Collusion... 8. Yes 9. No Almudena Solano 55
10. I don’t remember any of them 11. I would probably buy the fourth look starting from the left. 12 - All of them except anthropology 13. Brownie, Tommy Hilfiger, Urban Outfitters, Brandy Melville 14. Tops, bottoms, jackets.. 15. 16. No. 17. I don’t know them 18. 19. It’s high 20. I like the style of the clothes very casual but yet classy 21. Casual, denim, classy 22. Urban, Zara, Asos 23. Levis 24. A young person for sure 25. I think it fits for a wealthy preppy teenager. 26. The values of his creator 27. Urban Outfitters and Zara. 28. Zendaya, Zoe Kravitz, Ninauc, Gigi Vives... 29. Their style. 30. The process of getting ideas for the looks. MALE/19 YEARS 1. Yes, a lot 2. I don’t go very often nowadays 3. Inditex (zara and massimo dutty overall), calvin klein, ralph lauren 4. On those that I know are going to have durability. 5. I take advantage of the sales, but usually when I have time, like summer and autumn. 6. I can spend perfectly 1 whole hour in the same store. 7. Zara the most 8. Yes, as I told you before. 9. Some, yes 10. The perfume ones. 11. Pants, shirts, jumpsuits, shoes… 12. All of them. 13. In Tommy, Urban Outfitters and Ralph Lauren 14. Polos, shirts, jumpsuits, pants…. 15. - no response 16. Yes 17. Yes 18. Because I like the product they sell (type of clothes and the trends) 19. 50 euros and upwards. 20. Yes 21. I really like that brand but as many others I think you pay a high price jut because of the brand’s logo. 22. Fashion, trendy and denim. 23. Because they follow the actual trends, designs are all right and a lot of products are denim. 24. Burberry, Balenciaga, Calvin Klein or Ralph Lauren. 25. Pepe Jeans or Ralph Lauren. 56 Communication proposal
26. Anyone who can afford it. It depends on the person. 27. Stop using animal products (wool, animal skin, feathers, silk, etc…) if they do use them. And lower the prices. 28. A lot, Givenchy, Tommy, Ralph Lauren, Gucci, Armani, Balenciaga, Calvin Klein… 29. Marc Forné, Jessica Goicochea, Joan Palà, Pelayo Díaz, Xavier Serrano, Marta Lozano… 30. The way they combine their clothes and create original looks. 31. In the case they have good ethics, learn from their values. And also learn how to create cool outfits and use a brand as and inspiration font. FEMALE/ 28 YEARS 1. No, because it’s mostly crowded and overwhelming. Too many people. 2. Every 2 to 3 months. 3. Carhartt, Monkey, H&M, Urban Outfitters, Pull and Bear. 4. On Shoes, jackets and accessories. like good quality (durability and good finishings) 5. Generally summer, when the good weather starts. 6. Depends, 20 or 30 minutes. It depends on the store and if I’m willing to buy sth or I’m just looking and know that I’m not going to buy. 7. Carhartt, Levis (2n hand), North Face, Adidas, Nike, Patagonia, Urban Outfitters, decathlon. (thrift shopping) 8. Yes. 9. No, I remember a Ralph Lauren one advertisment but not Tommy. 10. None, I wouldn’t like their advertisements because it doesn’t speak to me. It’s too pretentious. It’s not my style, it is too classic. It’s between posh and “choni”. 11. Only the white blouse, I wouldn’t buy it because I don’t like the colours and shapes. It’s too happy and pop. 12. I know all of them except the first one. 13. Brandy Melville, Urban Outfitters and Ralph Lauren. 14. If I go there I want to buy something special, like accessories. Not basic things. 15. Because it’s not my style. I don’t like their message, what they represent. I remember that Tommy was in a big racist scandal and because to me is like an arrogant. Tomy has become a fake brand, very falsified. 16. no 17/18. What I remember is their collaborations with Urban Outfitters (even though I still don’t like them). I see their advertisement as sexist, misogynist and unreal. Promoting a non healthy feminine canon. 19. Expensive. Above 80/90 euros. 21. Sexist, arrogant, basic and boring. 23. Carhartt, northface, adidas, hm, weekday. 24. Ralph Lauren. Differences between Tommy and Ralph: Ralph is more elegant, classic, more serious and they have more heritage and quality. It is as if Tommy has copied Ralph Lauren. 25. Tommy seems predominant in a latin american environment. “Fake Tommy”. 26. People that don’t have a lot of money but they want to transmit that they “have” a lot of money. Show off. 27. Everything. The logo, their clothes, their shops… 28. None 29. I follow photographers (landscape /artsy /food). 31. I like to know their values, like Patagonia, they explain how they produce, how they pay their. I like transparency. Almudena Solano 57
FEMALE 18 YEARS 1. Yes, I love it 2. 2/3 times per month 3. Brandy Melville, Zara, Bershka, Brownie 4. Shoes 5. I’m not sure, probably Winter 6. It depends, but I can stay up to 1 hour at the same store 7. Brandy Melville, Brownie, Asos, Hollister 8. No 9. Not really 10. I don’t really remember any 11. I would buy the fourth outfit 12. All of them 13. Brownie, Subdued, Tommy Hilfiger, Urban Outfitters and Brandy Melville 14. Clothes and accessories 15. – 16. The last one I remember was the one from the collection with Gigi Hadid 17. I like the one that I’ve mentioned, but I don’t remember any others so I don’t know 18. I like it because I like the clothes that she designed and because she is one of my favorite models. 19. It is quite expensive. I would say that the prices start at 100€ 20. I think that it is a brand that it is not so relevant nowadays. My mother used to buy me some garments when I was little and I liked them. But now, I don’t really pay attention to the brand. 21. Preppy, casual, boring 22. Brandy Melville and Brownie 23. Ralph Lauren 24. I would say middle-class adults 25. I don’t know 26. Their clothes and their campaigns and social media 27. A lot: Gucci, Chanel, Louis Vuitton, Calvin Klein, Prada, Brandy Melville, Subdued… 28. Marta Riumbau, Melissa Villarreal, Aina Simon and Nuria Blanco 29. Fashion, makeup and travel 30. The history, the values that they have and more ideas about how to style their garments. FEMALE 23 YEARS 1. Yes 2. Once or twice per month 3. Zara, Mango, Brownie, Urban Outfitters, Brandy Melville, & Other Stories 4. Shoes, bags and some special garments if I really like them 5. I would say during fall and the Christmas season 6. It depends. If I like it and I want to try on clothes, I can be there around 1 hour. 7. Mango, Brownie, Urban Outfitters, Brandy Melville, & Other Stories, Levi’s, Asos 8. Not really 9. I don’t really remember any specific campaign besides what they post on their social media profiles. 10. – 11. I would buy the second outfit but I probably wouldn’t style it like that, the fourth one and the jeans from the fifth. 12. All of them 13. Brownie, Subdued, Urban Outfitters, Brandy Melville 58 Communication proposal
14. Clothes and accessories 15. I don’t know, to be honest. It is not a brand that catches my attention, so I never go into the store. 16. I’ve seen that they made a collaboration with Zendaya, but I haven’t seen any clear advertisement, just what she has posted on Instagram 17. I don’t know 18. – 19. It is high. I think that their prices are above 80€ 20. As I said before, it is not a brand that catches my attention. I think that it is not very popular nowadays, especially for young people. 21. Classic, casual and preppy 22. The ones I mentioned before 23. I am not sure since I don’t really know what they are doing at the moment. Maybe Levi’s or Ralph Lauren? 24. People who like to show off the logo, with a classic style. 25. I don’t know, it depends on the age for example. 26. The brand image in general, because I think that nowadays, it is not a go-to brand for most of the people. Maybe if they try to be more present on social media, for example by working with influencers, or make stores that catch people’s attention, this would change. 27. The ones that I buy from ( the ones that I mentioned before) and some luxury brands such as Gucci, Chanel, Louis Vuitton, Versace, Loewe, Calvin Klein 28. Chiara Ferragni, Mery Turiel, Grace Villareal, Maria Pombo, Dulceida and Aretha Fuste 29. Music, fashion and sports 30. How they get ideas, how to style the garments, something about the history and if they are socially committed (if they do some charity etc) FEMALE 22 YEARS 1. No i don’t 2. once a month 3. shoes 4. I shop at Zadig & Voltaire 5. I don’t like tommy hilfiger 6. Because it’s not memorable and interesting.. it’s too basic 7. I have never seen an ad from them 8. price range is probs 70-100 9. 3 words would be simple, non fashionable and boring 10. Ralph lauren would be their competitor 11. I prefer ralph lauren because they have more ads, more styles, rich history and they’re cooler 12. i’d describe people that buy tommy as people that don’t care about their style and fashion in general 13. They should improve their brand image 14. Yeh i’d maybe be interested in knowing more about them. MALE 23 YEARS OLD - Yes, I do - Once a month - Urban Outfitters, Massimo Duty - On shoes - Spring/Summer - Half an hour Almudena Solano 59
-Massimo Dutti, Urban Outfiters - Yes - Mmm not really - I liked urban Lacoste campaigns - Brownie, Tommy Hilfiger, Urban Outfitters, Brandy Melville, Ralph Lauren - Tommy Hilfiger, Urban Outfitters, Ralph Lauren - Jeans, shirts - No - I don’t remember any recent - I don’t remember any recent - Above average. It’s a premium brand - Classic premium brand. Same style over the years - Classic, polo club, premium - Ralph Lauren - Ralph Lauren, Lacoste (in some way) - Medium-High class person - Business university student - The brand icon on their clothes is sometimes too big - Urban Outfitters - Me - The outfits - How they develop its most urban line Analysis of the interviews On the interviews we have done, we have concluded that most of the consumers do not buy at Tommy Hilfiger although some have bought something of the brand in the past. The people we interviewed were both man and women in their twenties. They all mainly buy from Inditex, Urban Outfitters, Brandy ect. Most of the people interviewed are aware of the brand however have never considered it and don’t care about it. These people have said the only ads they have seen were the collaborations with Gigi and Zendaya, none of just the brand alone. For those who like it, the brand is considered nice, ‘young’ and approachable, however when they buy a piece of clothing, it isn’t considered ‘special’ and they are not loyal to the brand. Ralph Lauren was said to be their main competitor and everyone chose RL over Tommy. They justifide it because for them RL have a rich history and a stronger image, more classy and ‘cooler’. They all believe Tommy should work on their image and have stronger values to come to the spot light. Competition analysis Competition results: ABERCROMBIE: 2017: 7.01 million dollars (5.7 million euros) RALPH LAUREN: 2017: 162.8 million dollars (137.4 million euros) CALVIN KLEIN: 2017: 3,153.3 million dollars (2,549.2 million dollars) Competition history
ABERCROMBIE: 1. Abercrombie was the place to go for hunters in the early 1900s. 2. By 1939 A&F was “The Greatest Sporting Goods Store In the World.” 3. Bankruptcy in 1977
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1. 2. 3. 4. 5.
Michael Jeffries transformed A&F into a very sexy teen store. The company expanded like crazy, becoming a go-to destination in malls across America. It added new brands to its roster. In 2002, the company received backlash for products that were perceived as offensive. The company was soon in hot water for other transgressions — namely, those regarding who it chose to hire — and not hire. 6. Jeffries left in 2014. 7. Abercrombie’s sales were still falling. 8. Abercrombie abandons its controversial “look policy.” 9. The brand has an identity crisis. 10. Abercrombie debuted a new, tame ad campaign in fall 2015. 11. Abercrombie is now targeting an older, more socially conscientious consumer. RALPH LAUREN: 1967 - While working at Beau Brummel Ties, Inc., designs a collection of wide, handmade ties, which he calls “Polo.” 1968 - Launches a line of menswear. 1971 - Introduces a line of womenswear. 1981 - First international Polo store opens in London. 1991 - Receives the Council of Fashion Designers of America (CFDA) Lifetime Achievement Award. 2003 - Partners with Memorial Sloan-Kettering Cancer Center to establish the Ralph Lauren Center for Cancer Care and Prevention, in Harlem, New York. 2016 - Ralph Lauren is the official outfitter for the Olympic Games. CALVIN KLEIN: 1968: The Calvin Klein brand is launched. 1973: Klein wins his first Coty American Fashion Critics Award. 1979: Calvin Klein controls one-fifth of the designer jeans market. 1982: Klein enters the underwear business. 1985: A new perfume called Obsession is launched with a $17 million advertising campaign. 1989: A Unilever Co. subsidiary purchases the Calvin Klein cosmetics/fragrance line. 1994: A unisex fragrance, cKone, is introduced; the company’s underwear business is licensed to Warnaco Group Inc. 2000: Klein files suit against Warnaco Group and its CEO Linda Wachner. 2003: Calvin Klein is acquired by Phillips-Van Heusen Corporation. 2010: PVH has estimated the ready-to-wear element of the brand to produce sales in excess in €4.6 billion. 2013: the Warnaco Group, which owned several elements of the brand, was bought out by PVH which united formal, jeans, sportswear and underwear under one name. Competition declared target + influencers targeted by the brand ABERCROMBIE: - Target: US consumers aged 18-34, classic style, not risky, american, appropriate - Influencers: Jayson Tatum, Keiynan Lonsdale, Brianna Hildebrand, Romelu Lukaku
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RALPH LAUREN: - Target: 25-60 age range, upper-middle-class to upper class range, value the more elegant outdoor sports such as polo and rugby, classic, elegant, and sophisticated style. - Influencers: Taylor Hill, Olivia Palermo, Emmy Rossum, Cameron Dallas CALVIN KLEIN: - Target: 15-30 age range, explorers and aspirers, urban youth and high-end business executives who are trendy and are stylish but prefer a minimalistic look. - Influencers: Kendall Jenner, A$AP Rocky, Noah Centineo, Shawn Mendes, Devon Carlson Competition competitive strategy and positioning proposal INDITEX (ZARA): Zara known as one of the main brands of the fast fashion company Inditex has as main competitive advantage its constant change of clothing in stores and affordable cost, making people return often to buy what’s new. Due to short lead time of clothes in store they can manufacture a variety of choices and styles so the success ratio increases. Also they identify and catch all the new trends so their clothes are highly commercial. ABERCROMBIE: Their competitive advantage relies on strong retail presence in the U.S (400 stores) as well as around the world (UK and Europe). Brand known for their young target, design and quality of clothes. Known reputation for its logo t-shirts. Right now the company is losing market share since they haven’t defined the type of brand they want to be so they haven’t a clear positioning. “Abercrombie has removed their brand differentiation from what it used to be, and by trying to be nice — or maybe, more kosher — [concerned with the] sensitivity of the Americans,” RALPH LAUREN: Known as an iconic american brand. Their competitive strategy: Creating a balance between Haute Couture and Classical lines, successfully mixing a new age identity with classical designs. CALVIN KLEIN: For the american brand presence in multiple fashion domains works as a big advantage. They mainly offer their products in the ready-to-wear segment of fashion (men and women) but their “money-making” trademark products are their underwear, perfumes and accessories which target mainly the youth. CK uses licenses to distribute their products around the world, which works as an advantage for them. Competition messages strategy analysis -Zara: “Accessible modernity”. Zara message affirms basically that you can dress trendy and updated without spending lots of money. They have a huge audience reach and cover a large demographic. -Abercrombie: “The popular californian and new york crew”. Old Abercrombie use to have a lot of success thanks to his message of popularity and in some sort of way exclusivity for the young audience. Their models showed sexuality and superficial beauty. -Ralph Lauren: “American classic and exclusive lifestyle”. The message Ralph Lauren transmits is one of elegance and modern clothes, made for the middle-upper american class. The brand’s communications have always been towards representing an aspirational picture of the American life. -Calvin Klein: “MyCalvins”. CK represents quality and rich products for young people. Their message is not agressive neither exclusive but a little bit sexual and young. Lately with their new campaigns they have also been portraying a message of union, family and friendship thanks to all the influencers they have chosen to feature. The brand recounts a sense of belonging, of always being there for eachother. 62 Communication proposal
Competitive Benchmarking Direct Competitors: Ralph Lauren, Abercrombie, Calvin Klein. KPIs to study: 1. Marketing/ Sales Indicators/ Pricing -Ralph Lauren: Multi-billion dollar company that deals with luxury and premium products. They provide to a rich client that comes from an urban class, therefore they had adopted a premium pricing policy for all their products. This High Price is used as a marketing strategy by convincing the customer that there is value added to the cost of production. Prestige pricing is of the psychological order, and is particularly addressed to a niche segment of customers, who associate high prices with superior quality. In the year 2018 the company revenues summed up to 6.18 billion US Dollars. Nevertheless, in 2017 online sales fell 27%, a dramatic loss of business caused by the reduction of online sales events. The decline comes at a time when Ralph Lauren needs to get more customers to its e-commerce site as it looks to become less reliant on its wholesale partners. -Abercrombie: Abercrombie is known as a young American brand. Their flagship products are their graphic T-shirts and Denim. The Brand is seen as a “Neo-Preppy” and “Young American”. Abercrombie sales have been falling for the past few years. The brand is struggling to find an identity in a dominated fast fashion system. On the price side, abercrombie is a popular brand that goes easy on the pocket. One avenue of long-term growth is the company’s online business, Abercrombie’s digital store-centric capabilities such as purchase online, pick up in store have been driving traffic to stores and as a result, spurring the purchases and productivity within the store. -Calvin Klein: Calvin Klein has opted for competitive prices that are changeable to suit the needs of a particular product line or place. Their strategy involves entering a market with premium prices and slowly decreasing them through numerous offers to attract and maintain its customer base. It also does discount pricing and other bargains to create further sales. For Calvin Klein controversial advertisements have also helped in high visibility in markets and have resulted in huge turnovers. Communication SWOT
Strengths: Strong brand heritage 1. Exclusive products 2. Loyal customers 3. Strong brand ambassador 4. Future Forward 5. Strong Campaigns 6. Wide variety of communication channels 7. New technology adaption
Weaknesses: 1. Brand recognition is dated 2. Brand image being not cohesive 3. Irrelevant interior design for stores 4. Too many website with repetitive content 5. No connection between instore and web Almudena Solano 63
Opportunities: 1. Product and services expansion 2. International growing market 3. More tech-drive industry Threats: 1. Intense competition from international brands 2. See now buy now as a FAD SWOT analysis Tommy Hilfiger’s was founded in 1985 and has been considered one of America’s ‘premium clothing company’ for decades therefore it has a very strong brand heritage which is what keeps the company ‘alive’. Being well-known for decades, the brand also has acquired many loyal customers along the way and a strong brand ambassador. Through the years, they’ve adapted and elaborated with new technology and are now selling through a wide variety of communication channels. However, Tommy Hilfiger does have a few weakness, one of them being the loss of recognition followed by the incohesive brand image. This is a big problem for the brand as many people don’t consider buying it for their loss of identity. By not having a meaning to the brand, they also have no connections with the offline and online stores by having too many irrelevant interior designs in the stores. Although having many weakness, Tommy Hilfiger does have many opportunities. They have opportunities in growing their product and services and by this grow internationally. As mentioned earlier, the brand keeps elaborating with new technology thus with all the new technologies evolving they can have a more technology-drive in their brand. However, Tommy Hilfiger does have an intense competition worldwide and competing against big brands like Polo Ralph Lauren and Lacoste that also have been alive for decades which come as a threat.
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References: The Balance. (2019). Use These 3 Harvard Business School Strategies to Beat Your Competition. [online] Available at: https://www.thebalance.com/what-is-competitive-advantage-3-strategies-that-work-3305828 [Accessed 22 May 2019]. Pvh.com. (2019). Tommy Hilfiger. [online] Available at: https://www.pvh.com/brands/tommy-hilfiger [Accessed 22 May 2019]. Blue Ocean University. (2019). Solved Value Chain : Transforming Tommy Hilfiger (A) Analysis. [online] Available at: http://blueoceanuniversity.com/frontpage/portervaluechain/17700-hilfiger-tommy [Accessed 22 May 2019]. Blue Ocean University. (2019). Solved PESTEL: Transforming Tommy Hilfiger (A) PEST Analysis & Solution. [online] Available at: http://blueoceanuniversity.com/frontpage/pestelcase/17700-hilfiger-tommy [Accessed 22 May 2019]. Bhasin, H. (2019). Marketing strategy of Abercrombie and Fitch - A&F Marketing. [online] Marketing91. Available at: https://www.marketing91.com/marketing-strategy-abercrombie-fitch/ [Accessed 22 May 2019]. Business Insider. (2019). The Abercrombie & Fitch you know is gone. [online] Available at: https:// www.businessinsider.com/abercrombie-and-fitchs-transformation-2016-3?IR=T [Accessed 22 May 2019]. Bhasin, H. (2019). SWOT analysis of Tommy Hilfiger - Tommy Hilfiger SWOT analysis. [online] Marketing91. Available at: https://www.marketing91.com/swot-analysis-of-tommy-hilfiger/ [Accessed 22 May 2019].
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