New Era Cap Co. Inc. Product Life Cycle
Hats are a product that have become deeply incorporated in the American culture and lifestyle. In the United States, hats are nearly always present in everyday life, from sports events (i.e. baseball games) to the streets of New York where one might see people wearing hats as a fashion accessory in their everyday life. Today, there are a plethora of different styles and varieties of hats. For example, one can buy university hats, sports teams hats and even superhero hats, thus causing the hat industry grow everyday. In this paper, I will analyze the hat industry life cycle, specifically focusing on the “New Era” company, one of the most popular hat companies in the United States and worldwide.
The New Era Cap Co. Inc. was founded in 1920 and was first known as E. Koch Cap Co. Their headquarters is located in Buffalo, New York, and the CEO of the company is a member of the Koch family - Mr. Cristopher H. Koch. The New Era Cap Co. has expanded globally into Canada in North America, Brazil in South America, Korea and Japan in Asia, and more than 40 countries in Europe. Even though hats are New Era's biggest product, they also sell other products such as jackets, tees, hoodies and many cleaning kits and accessories for hats. New Era provides products for men, women and kids of all ages, and among their most famous hat lines are the MLB, NHL, NBA, NFL and College lines. New Era offers different styles of hats such as the “fitteds,” which have different sizes to fit varying head sizes, and also the “snapbacks,” which you can adjust to the size of your head.
New Era targets its products towards a younger crowd, usually sports fans, ranging from kids as young as 15 years old to people around 35 years of age. The reason New Era targets a younger market is because the hats are accessories generally used by younger people, and it is hard to find peoNple older than 35 years of age wearing hats on a daily basis. In addition, there are many rappers today that wear New Era hats in their music videos and at concerts. Furthermore, various athletes can be seen representing their sports teams via New Era hats. As a result, this causes younger people who look up to these musicians and athletes to want to wear New Era hats. Overall, New Era does a great job at targeting their marketing towards younger people. Today, the United States is the country with the biggest market which New Era sells its product to. Followed by the U.S. market is the European market, which is so large that it consists of more than 40 countries. However, both locally and globally, New Era always try to target the same type of crowd. An example that supports this statement comes from Brazil. In Brazil, New Era is already beginning to produce hats representing popular Brazilian soccer teams, which is exactly what the Brazilian sports fans want. The 4 Ps
While New Era's main product is undoubtedly their headwear products, the company also manufactures apparel products such as tees, jackets, hoodies, belts and also cleaning kits for hats, which only adds value to their products. While most of their headwear products are made with sports teams logos on the front, their apparel products focuses more on the New Era Brand rather than sports teams. Many of their t-shirts present the New Era logo on the front instead of teams logos, which is similar with their hoodies and belts. The cleaning kits for hats is a superb deal for New Era because it causes customers to buy accessories that compliment their other products. The kit also keeps the customers happy because when hats get dirty, they definitely do not look nearly as attractive, so having a cleaning product at hand is very convenient.
New Era's prices range depends greatly on the hat style, as well as whether the product is a new arrival or whether it is a sales item. For new arrivals, the price generally ranges from U$25.00 to U$50.00. For the...
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