TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES - MANILA

COLLEGE OF BUSINESS EDUCATION

CASE STUDY ANALYSIS: TOMMMY HILFIGER

In partial fulfillment on the requirements of the subject
MARKETING MANAGEMENT

Presented to:
Mariel G. Carag-Jagurin,Ph.D.-Mgt

Presented by:
Buendicho, Marc Bruce
Dela Cruz, Joan
Dioniso, Pia Mae
Moday, Selwyn Floyd
Montalban, Jelinda
Moreno, Gwynne Feliez

BSBA-MM (MM11KA1)

Date of Submission:
October 7, 2019

TOMMY HILFIGER
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COLLEGE OF BUSINESS EDUCATION

TABLE OF CONTENTS
I. Time Context
II. Viewpoint
III. Statement of the Problem
IV. Objectives
V. Areas of Consideration/Analysis
VI. Alternative Course of Action
VII. Recommendation
VIII. Conclusion/Detailed Action or Implementation Plan

I. Time Context
In 1984, Murjani Sought out Hilfiger to be a Designer of Murjani
International.
In 1985, the Ads budget of Hilfiger is only US. $1.4 million and quite small
for selling a mass market.
In 1988, Hilfiger, Murjani and two other investor bought out Murjani
International and changed it's name to Tommy Hilfiger.
In 2007, Hilfiger gave Macy's exclusive rights to sell it's sporswear lines.
In 2009, Philips-Van Heusen (PVH) bought the company.
In 2013, they introduced it's first Webisode because they became
successful on their advertising

II. Viewpoints
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COLLEGE OF BUSINESS EDUCATION

The Tommy Hilfigers is company that has been popular in their strategy in
advertising their product and also fastly known in their brand name. This
became flexible by ensuring that their products must satisfy the needs
and wants of their customer in every country.The Tom Hilfinger company
push themselves to be on top unique identified product by its product's
characteristics it pointing out that this Company is continually changing
base on their customers taste and preferences. Which is the Hilfinger
Company's designers became one of the topnotcher in making clothes in
the changing and developing world which is they become still standing
company even they have been got some negative response because of
their brand which is being U.S brand but still they focus on their
marketing strategy like marketing mix to be not against and did not get
critism from other country.

III. Statement of the Problem

Tommy Hilfiger is a successful company but before all of these success

was made, the company faced many problems and gone through difficult
experiences before they established their company and the brand itself
such as:
 Their way of promotion in United States did not work with their
promotion in Europe.
 Hilfiger had an image of being a U.S brand despite of its expansion in
Europe; and
 The wholesaling distribution in United States did not work in the
distribution in Europe.
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COLLEGE OF BUSINESS EDUCATION
IV.
Objectives

This case study aims:

 To be able to identify the ways of establishing the company’s
branding in Europe.
 To be able to distinguish their brand in the USA and in Europe.
 To be able to describe their distribution process in Europe and other
countries.

V. Areas of Consideration/Analysis

Tommy Hilfiger's success in global and clothing brand development can

be summarized to its marketing mix decisions.
In promotion and branding it shows that they are not financially stable
for selling in a mass consumer market but they managed to be well-
known, by placing two-page ads in leading magazines and newspapers,
along with a billboard in New York's Times square without showing any
clothes or any models. The ads were so unusual to a brand to receive a
free publicity through newspapers. As the time goes by, Hilfiger has used
celebrities including "delebs" means dead celebrities even in children's
line they include Disney artists wearing the line. Through their effective
promotional campaign, their line became well-known.
In Product and price, Hilfiger has encountered some differing national
preferences. In European market, men don’t mind paying $50 more than
the highest-priced Hilfiger shirts in the United States, but they want them
in a higher-quality cotton so Hilfiger switched it into wool sweaters, they
adjusted to the European preference for slimmer-looking jeans and
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COLLEGE OF BUSINESS EDUCATION

smaller shirt logos, and created a line of added-luxury items, such as

leather jackets and cashmere sweaters for the Italian market. Their
communication in their customers are very strong they even adjusted the
brand just to fit in the European market but it’s not good for the U.S
market and in other countries. In able to that the firm make some
adjustments to fit country preferences.
While in the Distribution, even though they are well-known in European
market but because of having a lot of products they only have limited
products in some stores and they don’t have their own stores, while in
United States is more fragmented retail and wholesale system.
With this, it shows that Hilfiger was not prepared for their expansion in
Europe

VI. Alternative Courses of Action

 Promotion and Branding

Hilfiger established its name before it even produced an actual
product in the market. The logo and the name itself already
created an impact to the consumers. Using known people, artist,
and even dead celebrities such as Grace Kelly and James Dean.
They also did an advertisement for the children's line by using the
character of pluto and other disney characters wearing the
clothing line. As the brand expands in Europe, they noticed that
their models or their ways of advertising in the United States is
not going to work the same way in Europe. Their models in
Europe were thinner and less muscular than those in the US. And
to complete the image, they added scantily clad, seductive-
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looking women who stand behind their male models in the

photos. Tommy Jeans was also a name they neglected because it
sounded like a teen product. Also, they learned that their average
consumer in Germany was older than that in the United States.
Given this, Tommy Hilfiger did not have a clear target market in
establishing their brand. They should have segmented their
product according to their target market. It also creates confusion
to people on what type of clothing that Hilfiger offers because it
was being advertised for men, for children and for teens. They
want to cater a lot of consumers but their advertisements and
promotions can be improved in establishing their name in their
starting years.

 Product and Price

Another problem of Hilfiger was they initially encountered some
negative reactions abroad to it's image of being a U.S. brand.
Although some U.S. clothing products abroad such as jeans, so the
problem is europeans tend to see France, Italy as the upscale
fashion centers, an opinion clothing brands from other countries
find difficult to overcome. As a solution, Hilfiger has switched to
wool sweaters adjusted to the european preference for slimmer-
looking jeans and smaller shirt logos and created a line of added
luxury items such as leather jackets and cashmere sweater for the
Italy market. To make these changes and adapt its look to the
european demands, the company decided to set up a design staff
in Amsterdam that includes almost 30 different nationalities.
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The company being branded with where they originally came

from, created a difficulty in their expansion. But the company was
fast in responding to their customer’s needs especially in Europe
where they expanded. They considered the weather, culture and
fashion that europeans had. On the other hand, Hilfiger might
have a difficult time adjusting to every country they will expand to
as the time passes by. They should still have their original
trademark. Aside from the logo, and the color of it, the tool or the
kind of clothing they should use can be used in any country that
they will offer their products to.

 DIstribution
Although the distribution in US succeeded by first going into
department stores. It put an early european emphasis on them as
well. The US market was described as one of concentration in
sending a lot to department stores, and the European market as
one of fragmentation of sending a small amounts to small stores
that carry select pieces of their product, european operational
costs are about three times those in the US because of this more
fragmented retail and whole sale system.
The developed distribution process in Europe was wholesaling
and for other countries, sales grew substantially such as in China
and Japan as it turned to self-ownership within those markets.

VII. Recommendation
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COLLEGE OF BUSINESS EDUCATION

Tommy Hilfiger is a successful and famous brand in other

countries and here in the Philippines as well. Their products have
a good quality and that is why other people admired it, but some
people can not afford their products because it is expensive. As
one of the problems mentioned in the promotion and branding,
the study recommends to segment their product according to
their target market. So it would not create confusion to people on
what type of clothing Hilfiger offers because it was being
advertised for men, for children and for teens. They want to cater
a lot of consumers but their advertisements and promotions can
be improved in establishing their name in their starting years. In
their product and pricing, they had a difficulty in entering Europe
market given the fashion essence that the country has and its big
difference to the United States. The company might have a
difficult time adjusting to every country they will expand to as the
time passes by. So the study suggests to have their original
trademark. Aside from the logo, and the color of it, the tool or the
kind of clothing they should use can be used in any country that
they will offer their products to. For convinience, and for lesser
cost and hassle for the company. The developed distribution
process in Europe was wholesaling and for other countries, sales
grew substantially such as in China and Japan as it turned to self-
ownership within those markets.

VIII. Conclusion/Detailed Action Plan

TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES - MANILA
COLLEGE OF BUSINESS EDUCATION

As we conclude the following information of this company in how they

stand within in introducing the unknown company to being popular. The
company of Tommy Hilfiger encountered some difficulties in distributing
their product in abroad but they solve through satisfying their foreign
customers based on their taste and preferences. And also they got have
easily establish their company in the world of marketing because of their
strategy in advertisement which they have been easily become popular.
In the case of their products characteristics their company knew by the
other country that their product is a U.S brand but they created a clothes
that is for mass which is typically fitted for the taste of other customers.