Harrington Collection case analysis
COURSE: BUMK758Y Innovation Analytics
STUDENT: Jiechao Chen
PLEDGE: I pledge on my honor that I have not given or received any unauthorized assistance on this assignment.
This case is intended to identify opportunity for Harrington Collection’s new product line extension. It is suggested that Harrington Collection expend the stylish, sporty, casual attire under the Vigor priced at $99 to target the “moving beauty” segment, which will have a profit margin before tax of 14%, using the multichannel strategy and outsource labor in Mexico. BACKGROUND
Harrington Collection was established in 1960 by Ella and Steven Harrington as a manufacturer and marketer of designer women’s clothing.
Blake Myers, the general manager for the Vigor division, proposed his idea to expand into a new product line – the stylish, sporty, casual attire.
After examining the existing marketing strategy and proposing appropriate marketing questions, we concluded that Harrington Collection targeted relatively “linear” market segments based on age, income, and value seeking. It is plausible to assume the trend from pursuing “fashion” towards “status” in a women’s life cycle, and provide diverse apparel product classifications to cater to different dressing codes. Introducing the active wear could be a good opportunity since this product line extend the product scheme by adding a new dimension of casual life where doing sports is also an integrated part of the active lifestyles. Instead of addressing utility or performance, Harrington Collection has the competitive advantage of communicating fashion, which might evoke the loyal enthusiasms of the existing premium and fashion oriented Harrington community to work out and to become a “moving beauty”.
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