Tommy Hilfiger

Primary Topic: Brands

Title: Tommy Hilfiger

Source: Business Week April 24, 2000 P. 55

Summary:

The Tommy Hilfiger brand will have flat sales, but 40% lower profits. The culprit: getting away from his customers. Attempting to expand, the brand went on numerous extensions including perfumes, linen, and infant clothes. Distribution was pushed into over 10,000 department stores including discount outlets. Advertising went from the hottest rap groups to endorsers such as Rolling Stones and Britney Spears. These moves may move product, but they undermine profitability and street credibility.

Question:

This problem is not new to the Tommy brand. Many other hip brands have faltered when they grew by moving away from their original market. On the other hand Calvin Klein and Ralph Lauren have had very successful growth.

Compare and contrast the brand strategies for Tommy vs. Ralph.

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