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.