1) How well does active-wear fit with the Vigor division (e.g. target customer, advertising and sales strategy, production capabilities)? What possible impact could this new product line have on the Vigor brand name?
2) What are the potential retail trade and competitor reactions? Are there any potential channel conflict issues?
Marketing – Harrington Case
- How well does active-wear fit with the Vigor division (e.g. target customer, advertising and sales strategy, production capabilities)? What possible impact could this new product line have on the Vigor brand name? How well does active-wear fit with the Vigor division
The Product line focus of Vigor brand of Harrington collection was on Career wear dresses, skirts, blouses, pants and coats. It was usually classified in better product classification. The retail Price range of Vigor of Harrington collection was between $150-$500. The Target customer of Vigor of Harrington collection is a Trend Setter Women aged between 25 to 50 years whose average house hold income was around $75k. These primarily are college educated professionals who want comfortable clothing for work. They maintained production capabilities in near shore areas with large scale advertising used for selling products in speciality stores as well as company owned retail stores. The customers preferred Vigor brand of Harrington collection due to their superior quality, knowledgeable sales staff and Harrington brand being a symbol of high class fashion.
The Active wear category was about stylish lines which are sold in departmental stores and in budget and moderate class of apparels. The average price points in “better” category were around $100 with the category going on rise. The customer research told that customers wanted something which was more about contemporary and athletic fashion. The customer research also told that the target customers of vigor of Harrington collection and active wear were same and showed considerable interests in purchasing clothes in this $100-200 range if it had superior styling, fitting and fabric like that of vigor of Harrington collection was present.
If the new active wear category was introduced having different products like hoodies, t shirts and pants at different price ranges within Harrington collection, customers are going to buy them. The Active Range of products including pants, hoods and t shirts should be in alignment with Vigor of Harrington collection has current pricing, sales and advertising model, then ten precent of Harrington customers will buy the new active range. This will be $3.3 billion dollars of new sales generating for Harrington in the new active wear segment. Since, it is a trading up category, all the new products will be in “better “classification. This will also give a lower point entry for new customers of Vigor Brand of Harrington collection at lower price point and can be pushed up to the complete brand portfolio.