In this report, we will look at the company 7 for All Mankind, which is a premium denim manufacturer, which has expanded to other apparel and accessories in recent years. Founded in California in 2001, 7 for All Mankind was acquired by VF Corporation in 2007 and joined their diverse brand portfolio. We will examine 7 for All Mankind’s current market situation and how they can enhance their market share in the future given projected market conditions. The first section of the report will look at the current market situation of 7 for All Mankind. First, we will start with an in-depth look at the current macro environment using a PEST analysis. Using this tool, we will see that the coming recession and perceptions of luxury spending has the potential to drastically affect 7 for All Mankind’s business. Furthermore we will look at the luxury apparel industry itself, using Porters Five Forces to determine the relative attractiveness of the industry and how this impacts 7 for All Mankind. Next in this section we will analyze the competition, including major brands like Rock & Republic and True Religion. Through this analysis we will see 7 for All Mankind ‘s top market share position and how it’s products are positioned in comparison to other premium denim manufacturers including the ones previously mentioned. Lastly for this section we will analyze 7 for All Mankind relative strengths and weakness’ and why these elements are crucial for their future strategy. After this analysis we will look in-depth at what their strategy should be in the future. This strategies goal is to recognize the brand as a long-term thing and not something that should be strategized for only in the short term. This strategy highlights using their premium product position to maintain the image of the product going into the future. In order to achieve this 7 for All Mankind needs to further expand their product line in order to carry product in every stage of the product life cycle. Additionally, in this report we will explore the reasoning behind their premium high quality position and why it needs to be maintained to guarantee success into the future. We will also look at the marketing mix that should be executed in order to execute this strategy, which includes pricing, product, distribution and promotion.
Lastly, we will look at the implementation plan that will allow 7 for All Mankind to maintain their market share position and grow into the future.
Seven for all Mankind is a premium denim brand that has had steady growth in earnings since it was founded in 2001 . As you know Seven for all Mankind has been acquired by VF Corporation which has a wide variety of apparel brands under their corporate umbrella including several denim brands such as Lee and Wranglers (Exhibit 1). This diversity in your portfolio is something that will prove very beneficial for Seven for all Mankind in the future. Currently, this segment of your portfolio accounts for some of the greatest growth in your portfolio, which was a growth of 7% from 2007 to 2008 (Exhibit 2).
Using a PEST analysis to examine the macroeconomic environments and it’s affect on the premium denim market we can see that there are many external elements that have the potential to drastically effect Seven for All Mankind in the future (Exhibit 3). The factor that is on the forefront of everyone’s mind is the economic factors. Consumer retail spending in the past year has taken a sharp decline with stores like Saks Fifth Avenue, which currently sells Seven denim, posting a fourth quarter loss for last year blaming slowing sales in luxury apparel . This economic factor is something that will be shaping the strategy that 7 for All Mankind, should take in the future. It provides both possible opportunities that if leverage right could prove to sustain 7 for All Mankind’s growth in the future and possible threats that could damage the brands continued...