Post on 07-Apr-2017
transcript
TOMMY HILFIGERBRAND REVIVAL
Sandy Chan, Alexandra Armstrong, and Kacie Kemmerer
Table of ContentsIntroduction to Tommy
and the Brand
Quiz
Timeline
Is it Tommy?
Short Clip
Current Marketing Situation
Financial Performance
Competitive Analysis
PADR
Brand Prism
Marketing Mix
Brand Problems
Recommendations
Sources
Tommy and the Inspiration Behind the BrandInspired by rock stars and The Beatles coming
to America At this time, fashion and style had adopted a new imageStarted wearing bellbottom jeans which sparked an idea
Began a line of denim under his own designsMoved to New York, met Mohan Murjani and launched Tommy Hilfiger in 1985The start of a “casual revolution”
The creation of “bright colors and buttons”Tommy’s sportier jeanwear and casual preppiness made a statement which led to the company’s mantra “classic American cool.”
In 1980, this billboard appeared in Times Square:
This billboard made Tommy Hilfiger a household name.
TIMELINE 1969
Tommy’s career in fashion
began while he was in high
school.
Tommy opens his first store,
People’s Place, in his hometown of Elmira, New York.
1985Tommy Hilfiger introduces his
first men’s sportswear collection.
Billboard ad in Times Square.
1992The company goes
public.
1994Snoop Dogg helps
popularize the brand by sporting a Tommy shirt on Saturday Night Live.
1996The women’s clothing line
launches at 400 major department stores throughout
the U.S.
1998Tommy opens a store in London
1999The brand creates an ad campaign focused
on the “Year of Music,” featuring
sensations Britney Spears, Jewel, Lenny
Kravitz, and The Rolling Stones.
2000The company’s
stock drops 75%.
2003Tommy Hilfiger
steps down as CEO and is the principal
designer of the company .
2006The company suffers
financially and decides to go private. It is acquired by Apax Partners for $1.6
billion.
2010PVH Corp.
acquires the Tommy Hilfiger
Group.
2014Gary Sheinbaum
and Daniel Grieder are
appointed as the new CEOs of
Tommy Hilfiger.
2016The company announces Gigi Hadid as the Global brand ambassador.
Can you guess which look is Tommy?
Can you guess which look is Tommy?
Short Clip: Tommy Hilfiger then and now
Current Marketing Situation
1.24 million followers23,846
subscribers
10,542,867 million followers
43,500 followers
3.2 million followers
Financial Performance
1st Quarter ‘13 - 1st Quarter ‘16 Revenues and EBIT Margin
2015 International Sales Margin
Prospector:Calvin Klein
Analyzer:Michael Kors
Reactor:Perry Ellis
Defender:Tommy Hilfiger
PADR
Lower-income consumersSenior citizens
Brand PrismWhat
For Whom
When
Against Whom
Tommy HilfigerClassic American style“Preppy with a twist” Clothing, accessories, footwear,
eyewear, fragrances, home goods
Men, womenChildrenMiddle to upper class18-40 years of age
Every dayWorkSpecial occasion
Marketing Mix Product: Hilfiger and Hilfiger Denim
Tommy Hilfiger brand: sportswear for men and women, eyewear, men’s tailored clothing, women’s dress apparel, children’s apparel, handbags, perfume, home goodsHilfiger Collection: upscale womens attireHilfiger Denim: Casual apparel with a focus on premium jeans for men and women, footwear, bags, accessories, eyewear, and fragrance
Price: Tommy Line: avg. $125, Hilfiger Collection: avg. $300, Denim Line: avg. $80 Place: 1,475 global stores, outlets, and specialty stores Promotion: T.V. commercials, billboards, fashion shows and social media initiatives
Product range
Tribal Hijacking and Chasing Trends1992 – Rapper Grand Puba calls
Tommy Hilfiger “top gear.”Tommy embraces the hip-hop community’s love of his clothing.1994 – Snoop Dogg wears a Tommy rugby shirt on Saturday Night Live.1996 – Tommy Jeans launches, as well as a women’s line inspired by Aaliyah.2000s – Rappers begin to abandon Tommy for similar brands launched by fellow artists.
Bad Press and Lack of InclusionIn 1996 a chain email stating that Tommy Hilfiger had appeared on Oprah and made racist remarks began circulating.
“I wish those people would not buy my clothes - they were made for upper-class whites.”
In 2007 Hilfiger appeared on Oprah, where it was confirmed that he had never appeared on the show before.In 2016 sensationalist headlines proclaimed that Tommy said that Gigi Hadid was too fat to walk in his show.
Other IssuesGoing from private to public
Going public led to over supplying the demandWent private again in 2006, selling the company to Apex and then to PVH Corp in 2010Led to unconventional restructuring changes such as: raised prices, smaller clothing, alienating customers and cutting off stores
International success despite being an “all-American“ brandGrowth from the past years has been credited towards Int’al sales North America sales (-10%) and revenue (-5%)International sales (+8%) and revenue (+11%)
Factory fire in Bangladesh2012 fire led to the death of 29 workersAfterwards the company committed to $1 million to improve safety standards
RecommendationsMore ambassadors
More diversity, less risk of associating brand with just one personRecommended ambassadors: Drake and Jourdan Dunn
Stick to USP: “classic American cool” brand.Choose a one-word equity.Don’t chase trends and scale back on overbranding..
Instagram: 30.5m followers
Twitter: 34.3m followers
Instagram: 1.9m followers
Twitter: 277k followers
SourcesBells, S. (2016, May 27). PVH’s Tommy Hilfiger Gets Boost from Strong International Sales. Retrieved December 07, 2016, from http://marketrealist.com/2016/05/pvhs-tommy-hilfiger-gets-boost-strong-international-sales/Bielfuss, Lisa. (2016, August 18). Perry Ellis to Close 15 Stores, as Retailer Posts Wider Loss. Retrieved December 3, 2016, from http://www.wsj.com/articles/perry-ellis-to-close-15-stores-as-posts-wider-loss-1471523673Fisher, L. A. (2016, October 26). Gigi Hadid & Tommy Hilfiger's Design Collaboration Will Continue for Spring 2017. Retrieved December 07, 2016, from http://www.harpersbazaar.com/fashion/designers/news/a18411/gigi-hadid-tommy-hilfiger-spring-2017/Fitzpatrick, Hayley. "One of the Top '90s Brands Recovered from a Horrible Crash, and Sales Are Soaring." Business Insider. N.p., 16 June 2015. Web. 07 Dec. 2016.Gerstein, J. (2016, November 2). Tommy Hilfiger Said Gigi Hadid Wasn’t Thin Enough To Walk In His Fashion Show. Retrieved November 3, 2016, from https://www.buzzfeed.com/juliegerstein/gigi-hadid-was-too-fat-to-walk-in-a-tommy-hilfiger-show-said?utm_term=.fcdG3E1aO#.kkApZka3rJohnston, R. (2015, September 25). How a billboard transformed Tommy Hilfiger. Retrieved December 1, 2016, from http://www.gq-magazine.co.uk/article/tommy-hilfiger-success-billboardLong, H. (2016, February 26). Michael Kors' Secret to Success. Retrieved November 30, 2016, from http://money.cnn.com/2016/02/26/investing/michael-kors-stock-comeback/ Mau, D. (2012, March 21). Tommy Hilfiger Admits to Still Using Unsafe Factories, Commits $1 million to Improving Safety Standards. Retrieved December 07, 2016, from http://fashionista.com/2012/03/tommy-hilfiger-admits-to-still-using-unsafe-factories-commits-1-million-to-improving-safety-standardsO'Connor, Clare. "Turnaround Tommy: How Hilfiger's Once-Dead Brand Had Its Biggest Year Ever." Forbes. N.p., 10 Dec. 2014. Web. 07 Dec. 2016.PVH Corp. (2016). Retrieved November 15, 2016, from https://www.pvh.com/Sanchez, K. (2016, August 22). Top Gear: The Oral History of Hip-Hop's Love Affair With Solari. Feb 2, 2015 2:03 Pm EST, Santiago. "Tommy Hilfiger-the Proven Lifestyle Brand." Tommy Hilfiger-the Proven Lifestyle Brand - Market Realist. N.p., 2 Feb. 2015. Web. 07 Dec. 2016.Suddath, Claire. "Tommy Hilfger Q&A: The Rise and Fall and Rise of a Man and His Brand." Bloomberg.com. N.p., 18 Apr. 2014. Web. 07 Dec. 2016.Tommy Hilfiger. Retrieved October 29, 2016, from http://www.complex.com/style/2016/08/tommy-hilfiger-hiphop-oral-history"Tommy Hilfiger Global | MANAGEMENT." Tommy Hilfiger Global. N.p., n.d. Web. 07 Dec. 2016.TOMMYxGIGI Youtube ad: https://www.youtube.com/watch?v=ccLMtBM_0ZY
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