Christy Church, Ayanna Green, Marisa Smith
MKT/571
Armando Salas-Amaro Jr.
May 11, 2015
New Product Marketing Launch Plan, Part III
Executive Summary
Situational Analysis
Market Growth Potential and Competitive Analysis
In terms of market growth with its Innovate to elevate platform, Hanesbrand has succeeded in driving its margin expansion. Considering in 2014, its innerwear segment operation profit grew 130 basis points year after year up to 20.4%. This has surpassed 170 basis point of expansion in the prior year. Yet, it is believed Hanesbrands ' Innovate to Elevate platform is currently in its early stages. It is also estimated that Innovate to Elevate platform products account …show more content…
Additionally, it is believed that Hanesbrands leverages extensive manufacturing capabilities in order to produce quality products, in addition to charging an economical price. Furthermore, Hanesbrands operates a large owned and controlled global supply chain which includes 60% of its operations in the Western Hemisphere and 40% in the Eastern Hemisphere, which is thought allows it to maximize low cost production and global distribution. Hanesbrands has 72 facilities that produce 1.9 billion units. Considering it is wholly owned and operated, a research and product design and development team works on manufacturing processes in order to find the lowest cost production method for new product innovations. Additionally, the production process is as much a priority as the new product itself. Therefore, this integration in development and the benefits of scale afforded a synergistic brand portfolio those results in a competitive advantage. Finally, it is believed that these manufacturing capabilities also allows Hanes to deliver high returns on acquisitions, given the success of Hanesbrands has accomplished in terms of integrating prior acquisitions that includes Maidenform and DBApparel, in addition to the steady pace of acquisitions at …show more content…
Hanes’ new guidance range for net sales is approximately $5.350 billion to $5.375 billion, up from previous guidance of approximately $5.075 billion. The company increased guidance for adjusted operating profit by $25 million to a range of $735 million to $755 million, up from the previous guidance range of $710 million to $730 million.
Hanes has increased its guidance for interest expense and other expense by $5 million to approximately $90 million to reflect the DBA purchase. While the DBA acquisition is expected to have a slightly positive effect on the company’s corporate tax rate, Hanes continues to anticipate the 2014 rate to be in the low teens. The company expects slightly more than 103 million weighted average shares outstanding in 2014.
Adjusted EPS guidance for 2014 has been increased by $0.20 to a range of $5.40 to $5.60, up from previous guidance of $5.20 to $5.40, reflecting the DBA contributions to sales, adjusted operating profit and the corporate tax rate, partially offset by higher interest