Tommy Hilfiger is a global lifestyle company specializing in manufacturing a complete line of clothing designs. It was founded by the company's principal designer and namesake, Tommy Hilfiger. The company designs both men's and women's clothing including bedding, fragrances, luggage, footwear, sportswear and children's designs too (Hilfiger, 2019). Tommy Hilfiger has over 1000 stores all over the world. Founded in 1985, the company boasts of huge sales due to its good marketing strategies. The brand uses different advertising techniques to attract more consumers to purchase its items.
The company's promotional and advertising techniques have contributed to the success of the company. Unique advertisements have been used to enhance the company's image both locally and internationally. The company included the designer's name on each ad to give it a competitive advantage over other companies producing the same products. In addition, the advertisements also featured the founder's photos and the company's logo. This improves the consumer retention of the ads.
This type of advertisements is still used by the brand today to lure customers. Celebrities and public figures often wear the company's shoes, clothes or other accessories, giving the company free publicity. Tommy Hilfiger label and logo is known worldwide because the promotions are done according to market perceptions. For example, American clothing labels find it challenging to enter the European market because they perceive that good designers come from Italy and France and not America. Tommy Hilfiger featured ads that embraced their perception, by maintaining its good image in America.
The company has also changed its distribution strategies to fit their European customers. In the United States, the company sold its products to high-end departmental stores. However, in European countries, they shift their distribution to many small stores to gain a competitive advantage over other companies. This explains why Tommy Hilfiger remains a dominant brand globally.
European countries generate almost 37% of the total sales (Daniel et al, 2009). Nearly half of the revenue comes internationally, and Europe generates the highest sales of approximately 37%. Although Europe's population of 738 million may seem like a small population as compared to the world's population-(it is only 10.7% of the world's population), it is double the population in the US. This explains the larger market share it has as compared to the US. Tommy Hilfiger decided to advance through the international market because of the difference in population size of countries. This is because the market size and growth is an essential component when a company decides to invest internationally.
Daniels, J. D., Radebaugh, L. H., Sullivan, D. P., & Madrid, A. C. T. D. L.(2009). Environments and Operations.
Tommy Hilfiger. (2019). Tommy Hilfiger USA. [online] Available at: https://usa.tommy.com/en [Accessed 16 Feb. 2019].
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