MARKETING STRATEGY ANALYSIS
Introduction
The company chosen for this
paper is Tommy Hilfiger. It mainly deals with apparels, accessories,
perfumes and other high end fashion products. Tommy Hilfiger actually
originated in American. The corporation was established in the year 1985. It is
quite crucial to understand which marketing strategy will work for an
organization and what will not. More importantly, the tastes and preferences of
the customers are changing globally. As a result, continuous change in
strategies whether it is pertaining to marketing communication or other mixes
of marketing is necessary to cater customers’ demand. The new concept that is
relevant to marketing these days is “act locally but think globally.â€
Discussion
Selection of the company
Tommy Hilfiger has emerged in the recent era vividly. Industry such as music
industry is often linked with the company so as to market its products vividly
across various nations. One of the best marketing techniques that have been
adopted by the company is sponsorship. Therefore, various music events have
been sponsored by Tommy Hilfiger. However, since the year 2000 several new
branding techniques have been largely embraced by the company. Thus, the
company started to work on its branding so as to enhance sales to a large
extent. Moreover, its main focus remained clothing as well as fragrances. Even
though the brand has been bought yet it still remained the same thereby
attracting several people around the globe. In fact, CSR activities are again
business strategy to increase footfalls of the customers in stores. As a
result, it is important to understand that advertising these green activities
can be considered as both marketing and blue ocean strategies. Therefore,
consumption area of Tommy Hilfiger is perfumes and apparels. It is quite
important to understand that addressing various customers’ demand will help a brand
to reach the zenith of success. As a result, in this paper local people’s
changing requirements, preferences and tastes must be addressed explicitly.
Social network is another gateway to reach the customers elaborately. Fragrance
such as Tommy Girl is one of the most sold products of Tommy Hilfiger. In fact,
girls around the world love the perfumes largely. The tagline of the company is
“for the people.†On the other hand, USP of the company’s products is nothing
but cool American style. Both high end and medium range products are sold by
the company in its retail stores to a large extent. Strong recognition and
distribution network are two primary aspects established with the help of
various marketing strategies.
Analysis and research of
the current marketing strategies’ effectiveness
Services
Services are provided by the store assistants within the stores to all the
customers entering. Moreover, it is one of the most important aspects that can
glue the customers to brand for longer period of time. It is also evitable that
Tommy Hilfiger provides services inside the stores such as free measurement for
clothing, trial facility and others. As a result, Tommy Hilfiger’s customers
are actually satisfied with the same and that is why after brand restructuring
footfalls of the customers is increasing in leaps and bounds.
4Ps of Tommy Hilfiger’s
Marketing Mix
Price is one of the most integral aspects that every company should look at so
as to retain loyal customers thoroughly. As a result, the brand, being in the
premium range it is important to understand that primary pricing strategy
adopted by the same is nothing but premium pricing. It helps to decipher both
classiness and sophistication largely. Furthermore, carrying products of Tommy
Hilfiger is a status symbol.
Products of the brand include
accessories and mostly perfumes as well as apparels. Women luxury cloth section
possesses exclusive items and they are unique in nature too.
Place is the prime factor in
marketing mix as customers can reach the brand via stores that are located in
distinct locations of America and other nations. Most of the Tommy Hilfiger
stores and flagship stores are located inside the shopping malls, departmental
stores and hypermarkets.
Promotion
is done by the brand via different platforms, both online and offline. For
instance, sponsorship programs, social networking sites and direct marketing to
the loyal customer can often be witnessed from Tommy Hilfiger’s end.
Identification of the
organization’s target customers
The main target customer group of Tommy Hilfiger comprises of upper urban
segment’s young both women and men. On the other hand, it is important to
understand that music industry celebrities also comprise of one of the widest
customer segment of the company. For instance, subculture patterned dresses
portray that the brand’s apparel corresponds to different music genres. Other
than that, the brand must be more responding to the changing customers’ demand.
Disadvantages and
advantages of recent marketing strategies pertaining to reaching target
audiences
The brand message cannot be conveyed by Tommy Hilfiger properly. As a result,
it is important to understand that target audiences may not buy when they want
to attain music concerts or programs. In fact, the company cannot utilize the
social media sites at their bests. Furthermore, loyalty programs are yet
not enough developed.
Advantage of sponsorship programs is that the brand can actually communicate
with the customers at a much larger scale and moreover they can also emotionally
connect with the brand itself. On the other hand, disadvantage includes that
the customer may not receive correct brand message and thus, these potential
customers may interpret the same differently.
Satisfaction level and
effectiveness of current marketing strategies in respect to American society’s
changing consumer behavior
Moreover, the change in customers’ taste is definitely addressed by the brand
to a large extent. For instance, customers like to interact directly with the
company and other loyal consumers. It has become possible due to use of social
media. Thus, this method is effective. Loyal customers share their experiences
in various social networking sites such as Facebook, Twitter, blogs and others.
Appeal of the company’s marketing
communication strategies used
The marketing communication is definitely appealing as all the young customers
are addressed explicitly by the brand. On the contrary, it can be understood
that appeal may not only come from how the same is used but ways the customers
are accepting the technique (Mackinney-Valentin, 2013). Definitely, the
customers of Tommy Hilfiger are appealed by the same and therefore, sales are
taking place at the fastest rate possible since restructuring.
New marketing strategy
suggestion on the basis of current strategy
Marketing should be done locally so that all the local customers are appealed
by the same. On the contrary, the brand was using one standardized strategy to
market its products to varying customers (Ko and Megehee, 2012). Thus, it is
important to adapt various techniques such as changing the mixes of marketing
before broadcasting the same to the target customers.
Values
For instance, some parts of the country may feel that offline marketing is
hazardous for the nature and that is why no paper should be taken into
consideration. Moreover, the brand’s products are largely significant for
portraying culture and subculture of various regions which can be accomplished
only with the help of choosing right pricing and product rolling out
strategies.
Demographics
The demographics of America are quite mixed where number of immigrants has
increased in the past few years. As a result, products should be customized
accordingly so as to match varying tastes and requirements.
Subculture
Subcultures such as indigenous American culture, Hispanics, Asian Americans,
hippies and others can be vividly witnessed by individuals (Tommy Hilfiger,
2017). Therefore, it is extremely important to understand how product types and
promotional strategies play integral role in addressing the entire landscape of
America.
Motivation
The motivation to purchase a brand’s product comes from witnessing the interest
of company to address customers’ needs largely. Moreover, customer purchase
motivation is the result of a brand’s intention to communicate with them
vividly.
Perception
Perception about a brand can be formed mainly because of image and reputation
that are created by the company. On the other hand, it is quite crystal clear
that customers dwelling locally want the prices to be adjusted as per the
economic condition over there (Parente and Strausbaugh-Hutchinson, 2014). For
instance, the average income of New York City customers is different from that
of Mexicans’ average income.
Attitudes
The attitudes of the customers towards a brand are the result of three mixes
such as beliefs, behavioral intentions and feelings. Therefore, new marketing
technique will be instrumental in changing the belief system of customers
pertaining to brand’s intention to communicate with them (Aghekyan-Simonian,
Forsythe, Kwon and Chattaraman, 2012). For instance, the brand’s carefully
formulated marketing techniques and attitudes are going to change how
customers’ perceive Tommy Hilfiger. It may require changing both product and
pricing strategies.
Learning
The customers can learn about any product via the
contemporary media such as social media sites. Therefore, product knowledge is
crucial to drag or motivate the potential customers to stores of Tommy
Hilfiger.
Conclusion
In this paper, it can be understood how Tommy Hilfiger’s intention to match the
subcultures is actually helping the same to a large extent for catering
customers’ demand. However, change in strategy will definitely fulfill the
local customers’ demand more authentically. Furthermore, the brand cannot
market its products in similar fashion in varying places of America because of
distinct cultures.
Aghekyan-Simonian, M., Forsythe, S., Kwon, W. S., and Chattaraman, V. (2012). The role of
product brand image and online store image on perceived risks and online purchase
intentions for apparel. Journal of Retailing and Consumer Services, 19(3), 325-331.
Ko, E., and Megehee, C. M. (2012). Fashion marketing of luxury brands: Recent research issues
and contributions. Journal of Business Research, 65(10), 1395-1398.
Mackinney-Valentin, M. (2013). Face value: Subversive beauty ideals in contemporary fashion
marketing. Fashion, Style & Popular Culture, 1(1), 13-27.
Parente, D., and Strausbaugh-Hutchinson, K. (2014). Advertising campaign strategy: A guide to
marketing communication plans. London: Cengage Learning.
Tommy Hilfiger.(2017). Spring 2017women's runway show. Retrieved from:
http://global.tommy.com/int/en/collections/start/tommynow/14 .
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