Case analysis - Harrington Collection

2533 Words Nov 28th, 2014 11 Pages
Case analysis-Harrington Collection

Problem identification
In 2008, Harrington Collection, a large manufacturer and retailer of U.S. high-end women’s apparel, was facing opportunities and challenges whether to launch of active-wear products to meet the market and customers’ needs. But according to the macroeconomic environment, the target market, competitors and its own financial condition, Harrington needed to take careful consideration and then make the best decision for their own development.
The U.S. women’s apparel industry
Market trends
From the data of U.S. Apparel Market Sale (2002-07), we could find out that, even when subjected to the impact of the economic downturn, the U.S. women's apparel industry remained
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The Sopra, positions as the “Bridge” classification. This product line focuses on the Evening Wear; it targets the consumers of “Status Seeker”. The retail price is about $400-$800. Most of the customers are 35-60; household income is more than $150k. The market share of Sopra is the lowest among the four product lines, only 5%. It is the “Dog” product, but the Evening Wear means the high-end position of a company, Harrington Collection needs to keep this product line.
The Christina Cole, positions as the “Bridge” classification. This product line focuses on the high-end Career Wear; it targets the customers of “Office Chic”, with the price from $300-$700. The average information of the customers is 30-55, with more than $100k household income. The market share is 8%. The market positioning of this classification’s products are very competitive, so 8% is acceptable. It is the “Star”.
The Vigor, “Better” classification’s product line, focuses on the Career Wear. Targeted customers are “Trend Setter”. They are from 25 to 50, with more than $75k household income. As the targeted age of the customers is younger than the others product lines, this line is full of fresh and flexible. It is able to adapt to the needs of the market to react and change, the “Star”.
Manufactory strategy
Harrington Collection does not set up overseas factories in Asia or outsourcing, for two reasons. First, they expected of high-quality women's apparel products, good quality make
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