Integrated Project

TOMMY HILFIGER

Submitted to
Dr. Tarun Pandey

Post Graduation Diploma in Fashion Business

By
Natasha Ch Pardeshi
Swati Saharia
Vishakha Tuli
Kopal
(2014-16)

Page 1

CONTENTS

PARTICULARS

PAGE NO.

Page 2

DECLARATION
We, Natasha Pardeshi, Vishakha Tuli, Kopal Nigam, Swati
Saharia students of Pearl Academy, New Delhi, hereby
declare that the project work entitled Integrated Project,
Tommy Hilfiger submitted to the business department is
a record of the original work done by us under the
guidance of all faculty members.
This report has not been previously submitted for ant
examinations/Institute/University.

Date: 28th November 2014

Place: Pearl Academy, Naraina.

Page 3

ACKNOWLEDGEMENT
Every work accomplished is a pleasure- a sense of
satisfaction. However number of people always motivates,
criticizes and appreciate a work with their objective ideas
and opinion, hence we would like to take this opportunity
to thank all, who have directly or indirectly helped us
accomplish this project.
Firstly, I would like to thank our course leader MR. Tarun
Pandey and all faculty members of PG Fashion Business
without whose support this project could not be
completed.
Next we would like to thank all the people, who gave their
valuable time and feedback to this project.
We would also like to thank my college for supporting us
with resource, which beyond any doubt have helped us.

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RATIONALE
Tommy Hilfiger is one of the leading premium lifestyle brands
therefore it encourages us to develop our knowledge in terms of its
market research. Main purpose of our study is to understand its
origin, promotion strategy, product line, customer relationship
management and also their retail outlets
It gives us the opportunity to understand and observe the
brand much in depth in terms of knowing the image of Tommy
Hilfiger in consumers mind.

OBJECTIVES
To Analyze Consumer Behavior towards Tommy Hilfiger
To Study Market Mix of Tommy Hilfiger
To Analyze Consumer Behavior towards Tommy Hilfiger
To Analyze Competitive Market of Tommy Hilfiger

Page 5

INTRODUCTION
1. HISTORY, ORIGIN AND EVOLUTION
1.1 HISTORY AND ORIGIN
Tommy Hilfiger Corporation, more commonly known as Tommy Hilfiger, is a
leading premium lifestyle brand. One of the worlds most prominent designer
apparel brands, it is currently incorporated in Hong Kong. The company was
founded in 1982 by the legendary American fashion designer Thomas Jacob
Hilfiger.( Mr Hilfiger was born in New York on March 24th, 1951 and is of
German-Swiss and Irish descent. His parents expressed their desire that he
might go down a more traditional career path, but instead he left education at
18 and went to work in retail)
The designer's big break came in 1984 when he was approached by an Indian
businessman (Mohan Murjani)p;
who needed a fashion maestro to lead a sportswear line for men. This was a
considerable fillip for Hilfiger as he was able to design the label under his own
name and such a milestone was celebrated by a bold billboard in New York
City's Times Square. He reportedly told a reporter in 1986: "I think I am the
next great American designer. The next Ralph Lauren or Calvin Klein."
Hilfiger has built his brand, using his signature red, white and blue tag, which
has become popular among the upper class and the casual buyer. Before
making his immensely popular product, he opened several stores in the '70s. It
wasn't until 1984, when he was approached to design a men's sportswear line
with his name that he took off into the stratosphere of fame and fashion.
[Tommy Hilfiger, 2014]

1.2 EVOLUTION
Page 6

Tommy Hilfiger is one of the worlds leading designer lifestyle brands and is
internationally recognized for celebrating the essence of classic American cool
style, featuring preppy with a twist designs. Founded in 1985, Tommy Hilfiger
delivers premium styling, quality and value to consumers worldwide under
theTommy Hilfiger and Hilfiger Denim brands, with a breadth of collections
including Hilfiger Collection, Tommy Hilfiger Tailored, mens, womens and
childrens sportswear, denim, accessories, and footwear. In addition, the
brand is licensed for a range of products, including fragrances, eyewear,
watches and home furnishings. Founder Tommy Hilfiger remains the
companys Principal Designer and provides leadership and direction for the
design process.
The company's formation dates back to 1984 when designer Tommy Hilfiger
entered into a licensing accord with Murjani and launched his first signature
collection through his firm, Tommy Hilfiger Inc.
In 1989, clothes manufacturer Silas Chou of Hong-Kong and Lawrence Stroll
of the UK took a majority stake in Tommy Hilfiger Inc. Following this, the
license accord with Murjani was terminated.
Tommy Hilfiger Inc was publicly listed in the NYSE during 1992.
In 1993, the company launched belts, neckwear for boys and men, and small
leather goods, and followed it with the launch of suits/sportcoats, dress shirts
and underwear for men in 1994.
In the same year,Tommy Hilfiger opened its outlet and specialty stores. A year
later, the company started distributing its products in Chile, Mexico and
Venezuela.
In 1998, Tommy Hilfiger acquired its women's wear and jeanswear licensed US
distributor Pepe Jeans USA and its Canadian licensee, TH Canada. The same
year saw the company expanding its distribution to Taiwan, Turkey, Spain,
Portugal, Greece, Colombia and Brazil and launching new product lines such
as home linen, bath and bed products, and sunglasses and athletic fragrances
for men. In the following year, fragrances, handbags and cosmetics were
launched for women.
Page 7

The company launched its website www.tommy.com during 1999 as a

marketing platform for its lifestyle brands.
Through the 200Os, Tommy Hilfiger ventured into the businesses of women's
intimate apparel, jewellery, watches and travel gear. The company's
geographic foray included countries such as Argentina, Australia, Italy,
Mexico, Qatar, India, Korea, South Africa and Saudi Arabia.
In 2000, the company closed its flagship stores in London (England) and
Beverly Hills (California in the US); and dropped its plans to introduce a dressup division for women. Tommy Hilfiger acquired its European licensee, TH
Europe, in 2001. The company closed19 specialty stores in the US in April
2003.
The closure spree continued in 2004, with four US specialty stores being
closed. In March 2004, the company launched its H Hilfiger label and
repositioned its US Young Men's Jeans business as a classic denim line.

Tommy
finance,
In April 2005, the company reacquired
the
rights 2013
for its Tommy Hilfiger brand

in Italy from the Italian firm, Fincom.

Page 8

Tommy Hilfiger undertook a restructuring programme for its US Wholesale

operations in 2005 under which, 135 employees were terminated. During the
same year, the company changed its segment reporting whereby, the
Wholesale segment was further divided into two segments, namely,
International Wholesale and US Wholesale.
During 2005, the company decided to pull its H Hilfiger label from the
department store channel and position it as a specialty store concept. Tommy
Hilfiger also relaunched its e-commerce portal with expanded offerings in the
same year. In January 2005, the company acquired the trademarks and
businesses of designer Karl Lagerfeld (including the companies Karl Lagerfeld
and Lagerfeld Gallery). In May 2006, Tommy Hilfiger was acquired by funds
advised by the private equity investment group, Apax Partners, for nearly $1.6
bn.
[ Tommy
Hilfiger, 2013 : search. Proquest]

1.2.1 GLOBAL MARKET

Page 9

Tommy Hilfiger, which was acquired by PVH Corp. in 2010, is a global apparel
and retail company with more than 17,000 associates worldwide. With the

support of strong global consumer recognition, Tommy Hilfiger has built an

extensive distribution network in over 90 countries and more than 1,400 retail
stores throughout North America, Europe, Latin America and the Asia Pacific
region. Global retail sales of the Tommy Hilfiger brand were US $6.4 billion in
2013.
[Castle marketing, 2014]

1.2.2 INDIAN MARKET

Tommy Hilfiger's entry into the country comes after long-drawn out
negotiations with domestic apparel companies. The US giant, which is building
its business in Asia after restructuring its operation in the US and European
markets, had earlier approached the Aditya Birla group company Indian Rayon
for a tie-up.
The deal with Arvind Brands has bought to the fore a Hong Kong-based NRI
Mohan Murjani who owns the rights for Tommy Hilfiger in India. Murjani, who
shook the global fashion circuit by launching the Gloria Vanderbilt brand 20

Page 10

years ago, has a close personal rapport with Lalbhai group head Sanjay
Lalbhai, that apparently helped the deal go through.
[Bennett,
Coleman & Co. Ltd., 2014]

2. ORGANISATIONAL STRUCTURE

Fig 1. Organisational
chart

Page 11

[store manager,pers.
comm.,2014]

3. BRAND MIX
The two main brands of Tommy Hilfiger are:

Tommy Hilfiger Our core line, which embodies the brand's "preppy
with a twist" heritage and focuses on a 25 to 40 year-old consumer.
Products are sold domestically and internationally through their own
retail stores (flagship locations, anchor stores, specialty stores and
outlet stores), through the wholesale channel and through e-commerce
websites; and

[Fabeau.de, 2014]

Hilfiger Denim This line is inspired by American denim classics with a

modern edge that is more "fashion forward" and casual than the Tommy
Hilfiger label. Targeting the 18 to 30 year-old denim-oriented consumer,
Page 12

the line focuses on premium denim separates, footwear, bags,

accessories, eyewear and fragrance. Products are primarily sold outside
North America and can be purchased in their own retail stores, through
the wholesale channel and through e-commerce websites.
[Famous
Logos,2013]

[Hilfiger denim, campaign,

2014]

3.1

PRODUCT
Tommy Hilger is a recognized premium fashion brand, offering customers a
range of high-quality product. Tommy Hilfiger Corporation markets menswear,
womenswear, and childrenswear designed by Tommy Hilfiger. Hilfiger sells a
complete line of clothing from socks to shirts, swimwear, jackets, pants, belts,
wallets and ties, as well as sleepwear, golf clothes, eyewear, cosmetics,
bedding, and home furnishings.
The Tommy Hilfiger collection consists of casual sportswear and accessories
for men and women that reflect the classic American cool brand mission .

Page 13

Products include mens, womens, and childrens apparel, footwear, swimwear,

accessories, fragrances, home and bedding products, and luggage. Tommy
Hilfiger products are sold at dedicated retail stores, department stores and
specialty stores worldwide.
[PVH Corp. 200 Madison Avenue, New
York, NY 10016, 2014

PRODUCT LINE

Page 14

MEN

CASUAL

WOMEN
T-SHIRTS

SEMI-FORMAL

SHIRTS
T-SHIRTS

SHIRTS
TOP

SHIRTS

TROUSER
DRESSES

JEANS

JACKETS
JEANS

PULLOVER

FOOTWEA
R

ACCESSORI
ES

SHOES

HANDBAG
S

STILETT
OS

BELTS
PERFUME

SLIPPER
S

WATCHES

SANDALS
LOAFERS
Fig.2 Product Lines

[store manager,pers.
comm.,2014]

Page 15
[Live creating yourself, 2014]

3.1.1 TOMMY HILFIGER AND ITS BRAND

Recent changes in consumer behavior have shifted from prescriptive to selfcreative styles, and Tommy designers have not responded well (New York
Magazine, 2000). In the segments where the company operates, apparel with
logos has fallen out of favor. Consumers have moved away from this
structured approach toward wanting more freedom in what they wear. They do
not desire to be connected as strongly to a brand label.
The move toward self-creative styles may reflect that consumers are shying
from brand identification and wanting to exude a style that is unique and
reflects their own personality, rather than an image created by a brand.
Since 2000, THC lost its brand identity focus; collections were not targeted at
specific segments and they were not designing for the newest urban lifestyle
trends. For example, they targeted teenagers but the styles turned out to be
attractive to parents brand, being the clothes that are bought for the kids by
parents.
In attempt to rescue the brand appeal, its Spirited All American style, THC
made some drastic brand changes:

Clarify brand structure by targeting each brand to a specific

demographic area.

Avoid being logo-centric.

TOMMY HILFIGER BRAND

The Tommy brand has divided into three
collections.

H Hilfiger
Tommy Hilfiger
Tommy

[Phablife,2014]

Each collection contains several lines.

Page 16

The H Hilfiger and Tommy Hilfiger collections overlap in their target markets.
The Tommy collection is targeted towards a yhounger market segment. The
Tommy Hilfiger brand is divided into the following collections:
H Hilfiger
The mens and womens lines of spring 2004 marked the launch of the H
Hilfiger brand (Annual Report, 2005). The new line is in response to consumer
seeking a higher level of sophistication in their style. The market is defined as
upper end apparel and offers a dressier look that can be worn to the office.
The company made a $10 million investment in marketing for the brand,
including an advertising campaign that features rock star David Bowie and his
supermodel wife.
(Annual
Report, 2005).
The H Hilfiger collection was originally launched exclusively in 120 Federated
Department Stores, but was pulled at the end of summer 2005 (Greenberg, J.,
2005). In reviewing our brand strategy, it became evident that the H Hilfiger
line was not appropriately positioned within the department store channel,
said Dyer and Hilfiger in THCs Annual Report (2005). The company is
repositioning H Hilfiger as a specialty store concept (Annual Report, 2005).
There are plans to open five to ten specialty stores in the second half of 2006.
Eventually, the company seeks to have 200 stores worldwide (Greenberg, J.,
2005).
Tommy Hilfiger
The signature line of Tommy Hilfiger is identified at the Tommy Flag Hilfiger
label and the Tommy Crest Hilfiger label. The Tommy Hilfiger Corporation
identifies the target market for their Flag and Crest labels as those 25-55
years old. The Flag collection consists of casual sportswear for men and
women that emphasize classic with a twist style. The Crest label consists
of tailored clothing and dress furnishing, as well as dress casual sportswear
for men. The company defines the market as better apparel segment. The

Page 17

Flag label is distributed worldwide in department and specialty stores, while

the Crest label is distributed in the United States and Canada only.

Tommy
The Tommy brand is a younger edgier line targeted at the 15-22 year age
group. The clothes are designed with a youthful fit. The Tommy logo has been
used on young mens jeans, junior jeans, and graphic tees, but as of fall 2005
the company closed the Young Mens Jeans division (Annual Report, 2005).
The decision reflects the stronger market demand for more sophisticated
premium denim washes rather than promotional commodity jeans

3.2 PRICE
PRICE RANGE
PRODUCT

MINIMUM (in Rs)

1999

T-SHIRTS
MEN

WOMEN

MAXIMUM (in Rs)

2799

SHIRTS

2999

6799

JEANS/TROUSERS

3999

11999

PULLOVERS

3999

5999

SHIRTS

1299

2999

TOP

1999

3999

DRESSES

2999

5999

JEANS

2999

7999

Table 1. Price
Range

[store manager,pers.
comm.,2014]

Rs. 1999- Rs.

Page 18

Rs. 3999 Rs. 5999

Rs. 2999 Rs.

Rs. 3999 Rs. 11999

Rs. 2999 Rs.

Rs. 1299 Rs.

3.3 PLACE

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In the establishment of the brand, retail stores have played a key role. Ever
since the launch of the first store in 1997, more than 200 stores have opened
all over the world - and they are still growing. Anchor stores are built in key
locations and franchise stores have been established around these anchor
stores. Tommy Hilfiger and its partners operate over 350 stores worldwide.

NCR

3.4 PROMOTION
Page 20

In an attempt to entertain consumers while tommy Hilfiger do different kinds of

promotions which includes online promotions, fashion shows, advertising etc.
Some promotional activities of Tommy Hilfiger:
Tommy Hilfiger Spring 2014 global advertising campaign featuring The
Hilfigers the beloved all-American family at the heart of the brands
marketing strategy.
They advertise with fashion shows such as breast health international
champagne, F/W 2014, pre fall 2014, summer 2014, denim campaign S/S 14,
S/S 14.
Attack! Promotional models headed to local
Tommy Hilfiger stores located in popular
mall destinations to help promote the
newest TOMMY clothing line. Energetic
brand ambassadors interacted with
shoppers, encouraging them to learn about
the new line. Promotional spokes models
[attack marketing, 2010]

dressed in TOMMY gear distributed the Zine, a

miniature magazine featuring TOMMY products and lifestyles. Promotional

coupons were also attached to each Zine for shoppers to enjoy!
[Attack marketing, 2010]

Save when you shop online at Tommy Hilfiger. eg.

Use promo code: BMSMTAKE40 on orders over
$250 and save 40 percent. Use promo code:
BMSMTAKE20 to save 20 percent on any order on
the entire site.
[New Jersey On-Line, 2014]

Hilfiger Denim: "MEDIA CREATIVITY Print Ad

Page 21

Online promotion activity

[Creative advertising archive]

Loyalty card promotion for customers

Page 22

[(Self) Face book

profile,2014]

Tommy Hilfiger also has membership loyalty enrolment promotion for

their regular customers. There are two level of loyalty card and those are as
follow:
1. Silver card
2. Gold card
1. Silver card: If a customer shop between Rs 15000 to 19999 then
that particular customer is eligible for silver card membership. The

benefits of silver card membership are mentioned below:

On every purchase that particular customer will get 10% discount.
Free home delivery
On birthday and anniversary will get additional 5% discount.
If the customer crosses shopping worth Rs 20000 then the same
customer will be upgraded to Gold card membership.
2. Gold Card : If a customer shop for more than Rs 20,000/- then the
same customer will be enrolled for gold card membership and the

benefits of having Gold card are mention below:

On every purchase that particular customer will get 20% discount.
Free home delivery
On birthday and anniversary will get additional 5% discount.
Also customer is eligible for customizing on T- shirt like adding name
behind the polo t-shirt.
[ store manager,pers.
comm.,2014]

Silver Card
Above Rs 7000/Gold Card
Above Rs 15000/10% Discount for
lifetime
4. HR POLICIES OF TOMMY HILFIGER:
Regarding HR information has been taken during an interview of Store
manager of Connaught Place Exclusive brand outlet .

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4.1

WORKING HOURS POLICY:

Tommy Hilfiger has nine hour working

policy for their employees. For backend team they have fixed time that is 9
a.m. to 6 p.m. but for front end team they have two shifts
1
2.

10 a.m. to 7 p.m. (It is known as morning shift)

1 p.m. to 10 p.m. (It is known as afternoon shift)

4.2 PROBATION AND CONFIRMATION POLICY:

Tommy Hilfiger has 3 month probation working policy after employees
joining their work if employees service found satisfactory then after three
month confirmation letter will be provided to their employees.
If the employee found absence for continuous period for seven days
without prior approval of their respective superior or manager, would result
employee losing his / her service and the same shall automatically come to an
end without notice or intimation.

4.3 LEAVE, COMPENSATION AND WEEK OFF POLICY:

In Tommy Hilfiger every employee is eligible for 2.5 leave in a month,
where 1 leave is sick leave and remaining will be casual leave.
If the employee of Tommy Hilfiger have worked on any holidays when
theoffice has been closed and has been officially declared as holiday. For the
employees benefit the employee gets a compensatory off benefitted to his
leaves account. Hence he can use this leave in future whenever he wishes and
will be a paid leave.
In Tommy Hilfiger front end team gets week off once in a week on weekdays
and backend team gets week off on Saturday and Sunday.

4.4 SALARY STRUCTURE:

Page 24

In Tommy Hilfiger salary of their employees

differs designation to designation wise and also it
differs in same line depending on employee
experience or previous salary and if the employee
is fresher then they have fixed salary for them.

4.5 PERFORMANACE APPRAISAL POLICY:

In Tommy Hilfiger appraisal happens annually once in financial year and also
Tommy Hilfiger believes in checklist
appraisal strategy where every option
will have rating scale (e.g. 1= Lowest and
5= Highest), below mentioned point are
commonly

find

during

in

appraisal

checklist.

Adaptability
Punctuality
Co-operation
Dependability
Job knowledge

4.6 TRAINING AND DEVELOPMENT:

Tommy Hilfiger provides training to their front

end

employee once in season it means twice a year in

this

training for their employee. The object of trainee is to

prepare their employee to do a certain job. However in Tommy
Hilfiger training other employee is often a major part of a managers job. For
an example store manager who has assistant store manager should be
training in such a way that assistant store manager become a store manager
at a later date.
There are two types of training in Tommy
Hilfiger informal way and formal way.

Page 25

Enama business,2014

Informal training: It is the type training in which managers are expected

to learn their job on the job, taking the initiative themselves.

Formal Training: It is the type of training which is usually supervised or

directed and follows a programme that involves the accomplishment of certain

set goals.
Training can involve the new employee as well as employee who are already a
part of employees.
There are three phases in Executive Training Development Programme

Customer Relationship Management: This training is basically to

mastering the art of selling and understanding customer service expectations

are very important. Trainees will develop leadership skills in selling, enhance
their customer interaction, and gain knowledge of company policies and
procedures.

Buying and Sales Support: In this training will be includes such area as

Inventory Management, Merchandising Selection, Marketing Analysis and

Planning and Vendor relation.

Supervisory Training: This assignment pairs the trainee with an

experienced Area Sales Manager, giving them the opportunity to use their
Talent and skills they have been developing in the role of managers.
[Nancy J. Rabolt and Judy K. Miller 2009]

4.7 INCENTIVE POLICY:

For front end team incentive depends on their store performance.
Opening of the month store will get target to achieve and incentive depends if
the budget is achieved by 90%, 100% and 120%
If the target achieved by 90% then store will get 0.5% incentive of
numbers achieved by store.

Page 26

If the target achieved by 100% then store will get 1% incentive of

numbers achieved by store.
If the target achieved by 120% then store will get 1.5% incentive of
numbers achieved by store.
And all these incentives HR distribute according to store employee
designation wise
(Store manager, Assistant store manager, Sr. Fashion consultant and fashion
consultant these all designation are found in front end team)

4.8 RECRUITMENTS POLICY:

There are two way recruitments in Tommy Hilfiger
1.

Internal

2.

External

Internal:
In internal recruitment strategy is characterized by promoting employees
from within an organization to fill upcoming positions this recruitment may be
in the form of creating and shuffling temporary teams to fill certain tasks or
may be permanent changes. In Internal recruitment before moving an
employee for next position employee go through an interview from HR and
Superior Manager. This mostly happens during appraisal session after one
year completion of employee.

Advantages:
Internal recruitment has some natural advantages. You do not have to
"reinvent the wheel" with an internal recruit. He will likely understand your
business model, your culture and your processes before assuming the new
position. The resulting outcome is that he will assimilate into the new position
Page 27

faster than a new employee who will need to be trained on the many
formalities of your firm from benefits to where your fire exits are before he can
begin job-specific training.
2. External:
An external recruitment strategy is one which a human resources department
will systematically search the employee pool outside its own employees to fill
positions. Tommy Hilfiger use advertisements in job search websites, job
consultancy and referrals from current employees to fill positions.
Advantages:
External recruitment also has some substantial advantages. Unlike internal
recruits, you are getting an inflow of often completely new ideas with an
employee who has not been exposed or overexposed to your corporate
culture. An outside prospect often yields new ideas. She may bring
information or methodologies from her former employer that can be integrated
into your best practices.

4.9 WORKING ENVIRONMENT:

From Tommy Hilfiger front end team found that they are very happy with
working environment, below mentioned points describes same.

As they get meet different people as customer during their working

hours hence they get to know that how every customers needs are different.

Front end team gets in every three month saloon voucher of 4000 for

grooming (e.g. for guys its haircut, hair color and for girls hair cut/ style/ hair
color and facial)

Fashion consultants performance is always checked weekly wise by

store manager and whoever performs really well will be rewarded by two
movie tickets.

In every six month front end team are eligible to pick two bottom and

three top for their uniform.

Page 28

They have quite casual and friendly attitude towards subordinate

including Manager.

In Tommy Hilfiger promotion happens once in a year depending upon

employees performance.

Tommy Hilfiger majorly do internal recruitment hence employee of same

company have opportunity to grow in terms of promotion.

5. VISUAL MERCHANDISING:

Visual merchandising is a general term

that is to describe everything that is
seen when a customer enters to a store.
Basically it is a presentation of a store
and merchandise in a ways that will
attract

the

attention

of

potential

customers and motivate to make them

purchase. Effective merchandise can sell
the merchandise without any type of
promotion.
In Tommy Hilfiger effective visual merchandising is very important. They
uses In store approaches for the majority of their promotion rather than using
their media advertisement. Tommy Hilfiger develops strict standards to create

Page 29

merchandise presentation consistency in all stores. Below mentioned points

Tommy Hilfiger majorly focuses in terms of Visual Merchandising.

Window
Display:
It is an important part of visual merchandising. Tommy
Hilfiger uses open window display which helps customers to see
directly into the store through the display.

Interior Product Display:

This

help

customer

locate

merchandise and can illustrate how

the merchandise is used or worn.
Additionally,

product

display

can

illustrate how the merchandise is

used or worn.

Please find below mentioned picture for Visual merchandising of Pacific Store,
Subhash Nagar, Delhi

Page 30

OVER ALL
LOOK OF THE STORE

Winter Wear Collection

Display

Front Display Unit To

Display Core Collection

Page 31

Cross Merchandising
Display

Knitwear Display
Unit

Womens Wall
Display

During Our Project to understand Tommy Hilfiger retail mix we have studied on
Pacific malls Tommy Hilfiger Store. Kindly find below mentioned description
for same.
Size of the Store

800sq ft
Page 32

Rent of the Store

Categories Of the products

18% Revenue Share

Apparel, Accessories,

No of employee
Business Every Month (on an Avg)

Handbags.
7
28 to 30 Lakhs

Footwear,

Below mention table describes the Sizes observed in store of apparel

Mens Collections Sizes
T- Shirt
Shirt
Denim
Trousers
Jacket
Blazer

S, M, L,XL
40,42,44
30, 32, 34, 36, 38
30, 32, 34, 36
S, M, L
S, M, L

Womens Collections Sizes

T- Shirt
Top
Denim
Dress
Jacket

XS, S, M, L
XS, S, M, L
24, 26, 28, 30
XS, S, M, L
S, M, L

SKU Of The Store

2500 to 2700

To understand SKU we have observed some of the categories which were

displayed in the store. Below mentioned Table describes the same .

Mens Basic Collection Polo T Shirt

Color
Sizes
7
5
Total SKU of Polo T Shirt = 35

Style
1

Mens Denim
Color
Sizes
1
5
Total SKU of Denim = 35

Mens Round Neck T- Shirt

Page 33

Style
3

Color
Sizes
2
4
Total SKU of Denim = 32

Style
4

Womens Dress
Color
Sizes
2
4
Total SKU of Denim = 16

Style
2

Womens Bag
Color
Sizes
2
0
Total SKU of Denim = 8

Style
4

6. SWOT ANAYSIS
A SWOT analysis (alternatively SWOT matrix) is a structured planning method
used

to

evaluate

the strengths,

weaknesses,

opportunities

and

threats involved in a project or in a business venture. A SWOT analysis can be

carried out for a product, place, industry or person. It involves specifying the
objective of the business venture or project and identifying the internal and
external factors that are favorable and unfavorable to achieve that objective.

Strengths: characteristics of the business or project that give it an

advantage over others.

Weaknesses: characteristics that place the business or project at a

disadvantage relative to others

Opportunities: elements that the project could exploit to its advantage

Threats: elements in the environment that could cause trouble for the
business or project

Page 34

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 1000
retail stores in North America, Europe, Central and South
America and Asia Pacific.
4. Associations and promotion from popular celebrities
5. Advertising and brand visibility is very popular

Weakness

1. Segment has huge competition from established brands

hence brand switching is high.
2.Brand Protection and Maintenance Costs are high

Opportunity

1.Innovation in apparels
2.Expansion of product line and Services
3.Increasing amount of disposable income in emerging
economies

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
Table 2. swot analysi

STRENGTH
1. Strong Recognition being a global brand:
The above mentioned point is justified by the following text from a report:
Tommy Hilfiger's brands, namely, Tommy Hilfiger and Karl Lagerfeld have
strong brand recognitions in the global apparel market. The company also has
a portfolio of well-established labels including Crest, Tommy Jeans, Tommy
Girl and H Hilfiger.
2. Strong distribution Network :

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The above mentioned point is justified by the following text from a report:
Tommy Hilfiger has a well-established and extensive distribution network. As
of March 2005, the company distributed its products through 159 outlet stores
and 41 specialty stores; and also through 275 other third-party and licensed
specialty and department stores across the US, Europe, Hong Kong, Japan,
India, South Africa, Australia, Central and South America, Mexico, and the Far
East countries. Such a wide distribution network increases the company's
reach to consumers in its major markets.
3. Wide product offerings :
This point is justified by following text from a report:
The company has been experiencing strong growth in Europe. The prime
factors that have resulted in such a strong growth in the region are Tommy
Hilfiger's expanding retail base, its higher penetration rates (especially in
markets such as Russia, France, Eastern Europe and Scandinavia), and wide
product offerings.
4. Advertising and brand visibility is very popular:
According to our observation, Tommy Hilfiger is engaged in every kind of
promotions. These brands does social media, Print media, Fashion Shows,
Discount Offers and also involve a lot of Celebrities for endorsements.
Weakness
1. Segment has huge competition from established brands hence brand
switching is high:
According to our observation Tommy Hilfiger has huge competiton. In
Domestic as wwel as international market. Tommy Hilfiger has United Colors of
Benetton, French connection UK, Calvin Klein, Ralph Lauren etc. since there is
tough competition and consumers have a lot of options there is a scope of
brand switching.
2. Constantly changing fashion trends means inventory issues:

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According to our observation Tommy Hilfiger is not able to change its

inventory frequently as compared to other brands such as zara and forever21.
Therefore constantly changing fashion trends is a weakness.
Opportunities
1. Innovation in product line:
According to our observation Tommy Hilfiger changes its Product line with the
changing fashion trends.
2. Expansion of product line and Services
The above mentioned point is supported by following text from a report:
During 2005, Tommy Hilfiger repurchased its brand rights in Italy from the
Italian firm, Fincom. By operating its Italian business on its own, Tommy
Hilfiger will be better poised to expand its presence in the Italian market and
capitalise on the existing opportunity to expand market shares in the
wholesale as well as the retail segments.
Threats
1. Intense Competition from international brands:
As FDI is encouraging international brands to come in India, Tommy Hilfiger is
going to face even more competition from international brands.
2. Economic slowdown which will cause reduction in demand for premium
priced products:
As per observation from our questionnaire Tommy Hilfiger is relatively elastic
to price, which means if prices will increase people will not prefer to buy the
same products. Therefore at the time of economic slowdown revenue from
premium priced products will decrease. Therefore economic slowdown is a
majort

hreat

to

Tommy

[search.proquest.com]

7. DIFFERENT TYPES OF SLEEVES

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Hilfiger

in

India

SLEEVELESS:

A sleeveless shirt

is

shirt

manufactured without sleeves, or one whose sleeves

have been cut off.

SHORTSLEEVES:
Sleeve extending from the shoulder to near

and

above

the elbow.

SPAGHETTI SLEEVES:
A spaghetti

strap

is

very

thin

shoulder

strap used to support clothing, while providing

minimal shoulder straps over otherwise bare
shoulders.

3/4 TH
SLEEVES: A sleeve that extends from the
shoulder to a length mid-way between the
elbow and the wrist.

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CAP SLEEVES: a very

short sleeve (as on a dress) that hangs over the edge of the
shoulder without extending along the underside of the arm

7.1 DIFFERENT TYPES OF NECKLINES

FULL
SLEEVES: a sleeve extending from shoulder to
wrist

ROUND
NECK: A low, U-shaped or round neckline. A
rounded neck, larger than a crewneck, but smaller
than a boat neck.

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BOAT NECK: A boat neck,

also called a bateau neck or Sabrina neckline, is a wide
neckline that runs horizontally, front and back, almost
to the shoulder points, across the collarbone.

V-NECK: A
neckline having straight sides meeting at a point to
form a V-shape.

TUBE NECK

CREW
NECK: A crew neck is a type of shirt or sweater
that has a round neckline and no collar, often
worn with other layers.

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SQUARE NECK: A square

neckline isn't technically a square, but it's shaped like a part of
a square with straight vertical lines going down from the
shoulder seams and a horizontal line straight across the chest
area.

7.2 ELEMENTS OF FASHION

LINE

TEXTURE

BALANCE

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7.3
STYLING
OF

THE

GARMENT

RHYTHM

Cotton/ray
on/linen;
lining:
Machine
cotton
washabl
e,

60%
Cotton/40%
High neckline,
Importe
Modal
Back zipper
d
Multicolore
closure
Short
Machine
d stripes,
sleeves
wash.
Lined
Imported Piping at
8. BUYING SEASON
neckline &
Button
Scoop neckline;
sleeves
2 main buying seasons of Tommy Hilfiger are:
closures
Short sleeves
at back
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Spring summer
Autumn Winter

SPRING SUMMER
A boardwalk runway made of sun-faded driftwood, snaking its way around
sand dunes and sprouting grass; lifeguard chairs, two surfboards planted in
the sand and a sign that read No Surfing Permitted - walking into Tommy
Hilfiger's show this afternoon was like taking a stroll in Malibu. According to
the show notes it was a celebration of an endless summer, and New York's
blue skies outside were certainly playing ball.
If that didn't already put fashion spectators in the mood, the show opened to
the sounds of rolling waves and Red Hot Chilli Peppers's Californication. First
out came a series of wetsuit-style minidresses rendered in spongy neoprenebonded leather, neoprene zip skirts, styled undone and folded down, and
scuba knits partnered with silk boxer shorts. Hilfiger had cottoned on to the
neoprene swimwear trend that has been bubbling for a few summers and sent
out his own versions along with chunky knitted hoodies, the kind that beachgoing college kids turn to as soon as the sun goes down.

AUTUMN WINTER

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Tommy Hilfiger treated his audience to a trip to the slopes this morning. The
snowy scene (made more believable by the fact that New York is currently
covered in the stuff) was set with a chalet perched up top, skis and poles
propped up against a rack and a chair lift over heads as models weaved their
way on a makeshift runway dotted with baby pine trees.The theme was the
great American outdoors - a clue show-goers picked up from the invitation - a
mountaineering clip knotted in hiking rope. The opening looks comprising
sheepskin lined parkas and plaid cemented proceedings.
In fact, check provided the baseline here - from tartan wool cashmere sweater
dresses to mohair pieces and silk shirting, it even appeared as accents on
peacoats. That mountaineering idea was cleverly played out in less obvious
ways too, like bungee cord button holes and elasticated drawstrings cinching
in the waist on performance jackets.
Blanket dressing, a trend spotted at the recent round of pre-fall collections,
continued here in the shape of maxi skirts with fringed trims.
In keeping with Tommy Hilfiger's last few collections, this was another youthcentric offering. Those fun flippy tiered miniskirts partnered with shrunken

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teddy fur bomber jackets is a jaunty look that will appeal to twentysomething's the world over.

[Vogue,2014]

9. USP OF THE BRAND

USP of Tommy Hilfiger brand is its CLASSIC AMERICAN STYLE.
Classic American style is dominating fashion these days. What
started as a domestic revival has snowballed into a worldwide
movementwell-dressed guys from Antwerp to Tokyo have
suddenly traded in their skinny black suits for navy blazers, slim
khakis, and, yes, polo shirts. It's a global shift to a subtle, timeless,
red, white, and blue aesthetic. Here's why the USA really is No. 1.

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LOOK

BOOK

OF

TOMMY HILFIGER

Out feat jeans

Rs. 2999

Page 46

PARTY NIGHT

Page 47

Watch
Rs.5599

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lazer
B
k
c
a l B la
Form s 4999
R

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