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Harrington collection sizing up the active market case study

In the era of apparel products are relative homogenization, price war seems to become a common method to erode the market share of each other between brands.

Many brands established overseas plants or outsourced to overseas factories. This could reduce their cost of production and labor. This makes the increased competition on the market. Among them, the specialty stores got the 1st position, 58. The 2nd place is department store, 19. Mass merchandisers got the 3rd position with 11. Targeted at the high-end market is the original intention of Harrington Collection. The 1980s, the Harrington Collection expanded Vigor and Christina Cole brands, the product line aimed at the younger customer market.

Because of their superior quality, knowledgeable sales staff and designer styles, they have a group of loyal customers. Four product lines Harrington Collection targeted affluent, fashionable, college-educated, professional women from 25 to 60.

They targeted women of different ages, different background, and different family income. As the targeted age of the customers is younger than the others product lines, this line is full of fresh and flexible. Manufactory strategy Harrington Collection does not set up overseas factories in Asia or outsourcing, for two reasons.

Harrington Collection: Sizing Up the Active-Wear Market

This strategy improves the cost of product, but it will help to enhance the brand image. Active wear In recent years, more and more of the company launched its own active wear products, just like hoodie, pants, and tee-shirt. Consumers believe that active wear is very comfortable, very fresh, and very casual. There is also a very important reason, active wear is relatively cheap.

And consumers are willing and able to buy high-end active wear. Active wear of Vigor Division To Harrington Collection, in 2007 and 2008, the active wear market was not suitable for them to locate a high-end brand. At that time, the consumers were more interested in the cheaper products.

But the Market trends had a sudden shift in 2009, so Harrington Collection got an excellent opportunity to join into the active wear market. In the minds of consumers, Harrington Collection is a high-end brand, if Vigor was able to launch active wear products, would be favored by the consumers of high-end brands.

And the core styles of active wear were about fresh and lifestyle. This would attract the existing customers of Harrington Collection to purchase Vigor active wear products, because they believed that these garments were high quality and fashion. The Vigor team made decision about pricing. However, the establishment of a new product line requires the purchase of new equipment, the new plant, equipped with the appropriate staff.

Harrington Collection needed to build a management team, design team. However, even the prospects of the market were perfect, but it still had a high risk to invest. Because of the market was full of uncertainties. But as a very promising project, Harrington Collection should carry out investment and development. Potential retail trade Because of the Vigor has laid a foundation, with a number of loyal customers.

Consumers can purchase the Vigor products from company-owned stores, upscale department and sociality stores. Company-owned stores As the retail group of the Harrington Collection, they operated 120 stores, 50 of them were dedicated solely to the Vigor division.

Harrington Collection can avoid large retailers control, independent development and implementation of the marketing strategy. In these stores, Harrington Collection can be unified planning, unified propaganda, to help establish and enhance brand image.

But with the high operating costs, many involve the management of business, need to invest a lot of manpower, material and financial resources. Both the two storefronts implement the same plan and strategy, with a certain degree of stability and integrity, and at the same time are able to avoid the vicious competition among the channel members.

However, in this distribution channel, the prices of the previous link directly decide the latter part of the cost. This series is a strong attraction for consumers.

Harrington Collection: Sizing Up the Active-Wear Market Case Study Analysis & Solution

In the initial launch, Vigor would be vigorously publicized. The pricing strategy of Vigor active-wear is market skimming prices. Although these prices are lower than the other products of Vigor. The total cost of the product is much lower than the pricing.

This pricing strategy can maximize profits of each single product. And it will not affect their own brand positioning to consumers buying enthusiasm. These products as same with other products of Vigor, will perform the same sales strategy; simultaneous promotion.

The active-wear will not become a special product, which will affect the attitude of consumers to Vigor, that the active-wear of lower grade, or a decline in sales situations. After Harrington Collection released Vigor series active-wear, the two companies will certainly respond. At the same level, the relative homogenizations of active-wear products make it difficult to get a breakthrough in the design. They will not have a distinct advantage in the price, even in the presence of a disadvantage.

But their quality may be higher, more innovative style design; fabric selection will be more comfortable.

Case analysis-Harrington Collection Essay

The low-end brands will not impact on the formation of Vigor. There is no direct competition, but would impact overall active-wear market share. Potential financial impact of Vigor active-wear manufacturing group The establishment and promotion of a new product needs to Harrington Collection invest.

As the Vigor active-wear manufacturing group, this part of the investment is very high. The other data will be calculated in the form at the end of this part. The profit margin before tax was 15. Make decision A mature company should be good at discovering market opportunities, and seize the opportunity. Every investment has its risks, and identifies real opportunities for each company is very important.

As people increasingly focus on practical demand for clothing, active-wear has good market prospects, and Harrington Collection has an advantage for the development of this product line.

Even though the initial investment is huge, but this product is also huge gains. Harrington Collection should let Vigor add this product line.

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