Chapter 4 - The Marketing Environment

Tommy Hilfiger is a brand known for serving the middle and high class providing the public
with all-American preppy, relentless upbeat cable-knit sweaters, blazers, and Oxford shirts with that unexpected twist. Tommy Hilfiger overs a all-America lifestyle experience with its brand that has made it a world-wide sensation. In the summer of 2012 the company planned to open over 500 stores in India over the next 5 years.  Currently, Tommy Hilfiger operates 58 franchise outlets and over 60 shop-in-shops in other department stores. The expansion will take Tommy Hilfiger's presence to 631 points of sale by 2016-17. 

Their application to the Department of Industrial Policy and Promotion (DIPP) "Engaging in retail operations directly would enable the applicant company to set up retail stores in locations all over the country including in those which at present are found commercially unfeasible by our franchisee partners," 

Tommy Hilfiger has been one of the early movers among international lifestyle brands, having 
entered India in 2003. "It has stayed away from much discounting and created a loyal following across metro cities," Arun Sirdeshmukh, former CEO of Reliance Trends and co-founder of portal Fashionara, says. "But given their premium positioning it remains to be seen if there is a market for an additional 500 stores," he adds.

Chapter 3 - Ethics & Social Responsibility

Ethics are simply the ethical principles, morals and ethical problems found in the business space and the way they are approached. Ethics is very important in the business world, showing the business principles and standards of business behavior. In present day costumers are always observing business organization and ethical code. This is due to the fact that many manufacturing companies practice unfair terms of wages, and risky work environments that can easily market a bad reputation. Below are some of the compliance statuses found on PVH's website regarding Tommy Hilfiger's work policies. 

Health and Safety: 65% of non-compliance issues in this category were found to be resolved or are in the process of being resolved. We placed particular emphasis on fire safety, resolving or partially resolving 74% of the instances of non-compliance.

Wages and Benefits: 72% of instances of non-compliance in this category were resolved completely or are in process of being completed (43% and 28% respectively). We attribute the underpayment of wages to be an issue primarily with our factories in China where the minimum wages are rapidly increasing. Of the factories with outstanding wage non-compliance issues, 67% are in China. The factories are given a timeframe within which to pay the minimum wages if the business relationship is to continue.

Hours of Work: 66% of working hours findings have been addressed or are in progress. This is one of the most challenging issues given the apparel business model in which multiple companies may source product from the same factory with different delivery deadlines. We have continued to work with factories to track hours and identify and address the causes of non-compliance issues.

Harassment or Abuse: 53% of the instances of non-compliance related to harassment and abuse have been corrected or are in progress. Many of the open issues are related to an absence of management systems at the factory level, for example, insufficient training for workers and supervisors on disciplinary procedures or a failure to ensure that a non-harassment and abuse policy is effectively implemented to prevent verbal harassment. In some instances, the factories have imposed monetary fines if uniforms have been damaged; PVH has asked that monetary penalties be eliminated. If instances of non-compliance persist, the factory risks having the business relationship terminated.

Freedom of Association: 59% of the instances of non-compliance related to freedom of association have been corrected or are in progress. These are often complex issues requiring long term solutions. In many instances, the starting point is the building of more effective communication channels such as adequate grievance mechanisms for workers.

Ch.2 - Strategic Planning for Competitive Advantage

Tommy Hilfiger's Mission statement is: The Tommy Hilfiger Corporation is dedicated to the living spirit of the American dream. We believe the spirit of youth is our greatest inspiration. Resourcefulness is the key to value and excellence. In making quality a priority of our lives and products. By respecting one another we can reach all cultures. By being bold in our vision we continually expand our boundaries. 

SWOT Analysis 

Strength: 
1. Strong Recognition being a Global Brand
2. Strong distribution Network globally
3. Presence in more than 90 countries and more than 1,000 retail stores in North America, Europe, Central and South America and Asia Pacific.
4. Cool, American Style designs by reputed designer Tommy Hilfiger
5. Associations and promotion from popular celebrities
6. Advertising and brand visibility is very popular  

Weakness: 
1.Segment has huge competition from established brands ( exp. Ralph Lauren, Nautica, Calvin Klein, etc) 


Opportunity: 

1.Innovation in apparels
2.Expansion of product line and Services

Threats: 

1.Intense Competition from international brands
2.Economic slowdown which will cause reduction in demand for premium priced products
3. Constantly changing fashion trends means inventory issues

Competitive Advantage: 

Tommy Hilfiger is known for its cool America style design globally, the company has not failed making it's presence with over 1,000 retail stores in 90 countries. 

Strategic Direction: 

Tommy Hilfiger must be considered a cash cow if PVH (Phillips-Van Heusen) the world's largest shirt company bought the company for an estimated 3 billion dollars. Tommy has also increased sales with the addition of fragrance, bedding and watch lines. 

Target Market: 

Tommy targets middle to high income consumers of both genders. 

The Four P's 

Product: 

All Tommy Hilfiger apparel is mass produced in all different styles and contains a 30 day warranty.

Place: 

Contain over 1,000 stores in 90 countries making it a global powerhouse. Tommy Hilfiger stores are most commonly seen in malls and outlets all across the world. 

Price: 

Tommy Hilfiger price varies on the region and season, much of the product usually goes on sale in the end and beginning of seasons. 

Promotion: 

Tommy Hilfiger promotes through sales promotion and interesting billboards, Tommy Hilfiger most effective promotional tool is Celebrity endorsement specifically Hip Hop Artist such as A$AP Ferg, Snoop Dogg, Jay-Z and etc.

Ch. 1 - Overview of Marketing (Brief History and Mission Statement)

As one of the world’s leading premium lifestyle brands, Tommy Hilfiger delivers superior styling, quality and value to consumers worldwide. The brand celebrates the essence of Classic American Cool and provides a refreshing twist to the preppy fashion genre. Since its debut in 1985, the Tommy Hilfiger Group has become a US$ 4.6 billion apparel and retail company by offering consumers a breadth of beautifully designed, high quality products including men’s, women’s and children’s apparel, sportswear, denim, and a range of licensed products such as accessories, fragrances and home furnishings. 

Tommy Hilfiger began his bussiness venture as a teenager, he began buying jeans in New York City that he remade and sold for a markup in Elmira. When he was 18, he opened a store called The People's Place in Elmira that sold hippie supplies like bell-bottoms, incense and records. Wildly successful at first-Hilfiger soon had a chain of stores and a six-figure income-a downturn in the economy hit his business hard, and he filed for Chapter 11 bankruptcy in 1977. 

In 1984, Hilfiger was approached by Indian entrepreneur Mohan Murjani, who was looking for a designer to head a men's sportswear line. Murjani allowed Hilfiger to design the label under his own name, sealing the deal. The pair announced Hilfiger's arrival onto the scene with a blitz marketing campaign that included a bold billboard in New York City's Times Square announcing Hilfiger as the next big thing in American fashion. "I think I am the next great American designer," Hilfiger told a reporter in 1986. "The next Ralph Lauren or Calvin Klein."

Their tactics rankled the fashion establishment, which looked down on Hilfiger's naked self-promotion-Calvin Klein even got into a shouting match with the billboard's creator at a New York City restaurant. Though Hilfiger was embarrassed by the fallout, the bold tactics worked. Hilfiger's line of preppy clothes with his trademark red, white and blue logo soon became wildly popular. By the early 1990s, the hip-hop world embraced oversized versions of Hilfiger's clothes, and the brand assiduously courted rap stars and celebrities and has been influencing American fashion ever since. 

Tommy Hilfiger's Mission statement is: The Tommy Hilfiger Corporation is dedicated to the living spirit of the American dream. We believe the spirit of youth is our greatest inspiration. Resourcefulness is the key to value and excellence. In making quality a priority of our lives and products. By respecting one another we can reach all cultures. By being bold in our vision we continually expand our boundaries.