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Questions for Harrington Case

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?

Harrington Collection's manufacturer and retailer of high-end women's apparel. The Vigor division of Harrington Collection's is aimed to appeal to younger fashion conscious customers. The division sells career wear, dreis a learge sses, skirts, blouses, pants and coats. The ideal customers targeted by the Vigor division are "trend setters", women aged 25-50 who are affluent, college-educated, and proffessionals seeking fashionable yet comfortable work clothing. The retail price ranges for …show more content…

2) What are the potential retail trade and competitor reactions? Are there any potential channel conflict issues?
A new active-wear line offered by Vigor could cause some potential reactions from competitiors and retail traders.
The women's apparel market is highly competitive. With the launch of a new active-wear line from Harrington Collection's, more and more competitors will start to realise the potential value in in producing an active-wear line of their own. The active-wear market is growing so rapidly (expected to double turnover from 2007 to 2009), that eventually all of Harrington's competitors would likely be expected to launch a line of their own, relying on existing brand loyalty and high-scale advertising campaigns to capture market share and move units.
With such high levels of product differentiation between products and an already concetrated industry, it would be difficult for Harrington Collection's to stand out and secure market share for the new active-wear line, without signifacnt costs towards an effective advertising and marketing campaign. Harrington would most likely need to build on the existing customer base and/or appeal to consumers in an untargeted market space. For example high-end quality active sports wear.
Further reactions from competitors could be to provide cheaper alternatives that may appear similar to the offering provided by the Vigor brand. The result of this could be possible price wars to obtain market

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