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Case Analysis Of Harrington Collection - School Essays

Case Analysis Of Harrington Collection

Case Analysis Of Harrington Collection

Submitted by
J. G.

* Factual Summary:

* Harrington Collection, a large manufacturer and retailer of high-end women's apparel faced declining sales and shifting consumer tastes, and the company needed to consider new strategies to compete in the women's apparel industry.

* Harrington Collection's retail group operated 120 company stores: 70 stores sold a combination of Harrington Limited and Christina Cole merchandise, and 50 of the stores were dedicated solely to the Vigor division.

* The U.S. women's apparel industry market is mature; the average growth rate from 2005 to 2007 was 4.66 percent.

* There are six categories of clothing ...

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- 8.1 percent, and other channels - 2.9 percent.

* What is a unit? Since active wear is sold as separates, the ratio of hoodies to tee shirts to pants was not equal. One unit equals ½ hoodie + 1 ½ tee shirt + 1 pant.

* Case Problem:

How should Harrington Collections put forth their new active-wear line?

After three years of unimpressive sales and low margins, Harrington Collection must evaluate launching a new active-wear product line in order to increase profits and maintain industry leadership.

* Alternatives:

A: "Better" pricing with the same channel.

* Break-Even = 269,255 units ($25,579,186.45).

* Profit Margin = 18 percent.

* Brand Image = High quality, fashionable merchandise with status branding ($220/unit).

* Smaller Market Size = 15 million units x 40 percent of estimated sales x 7 percent market share = 420,000 units.

* Less distribution outlets = less promotion costs

OPTION A

Contribution:

Wholesale per unit
$95.00
$220 ...

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PAPER DETAILS

Added: 4/13/2013 09:21:26 PM
Submitted By: jmge
Category: Business
Type: Free Paper
Words: 629
Pages: 3

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