Tommy Hilfiger (A): The Rise and Fall




Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

ABSTRACT

Tommy Hilfiger (Tommy) is a designer, manufacturer, and retailer of men’s, women’s, and children’s apparel. As of 2016, it was owned by The Phillips-Van Heusen Corporation (PVH). Tommy Hilfiger was named after its founder, Thomas Jacob Hilfiger (Hilfiger). Hilfiger was born in Elmira, New York, in 1951. The cases discuss Tommy’s journey from the year it was founded in 1985 to its acquisition by PVH.Case (A) describes Tommy’s humble beginnings as a small retail designer label to its going public and then getting acquired by a private equity firm. The case contours the evolution of Tommy as a preppy brand and then swaying from its core to become a hip-hop brand. It further explores Tommy’s expansion in the 90s and its decline in the late 90s resulting from the overexposure of its merchandise. The case concludes with the appointment of a new dynamic CEO, highly regarded as a turnaround expert.

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Issues

The case is structured to achieve the following teaching objectives:

  • The growth of a brand through brand associations.
  • Product line extension, overexposure and brand dilution.
  • Retail distribution channels.
  • Perils of discounting.
Contents
INTRODUCTION
THE BEGINNING
THE RISE
SOURCING AND RETAIL
AND THE FALL
WHAT NEXT?
EXHIBITS

Keywords

Brand Association, Retail Strategy, Distribution Channels, Overexposure of Brand, Brand Dilution, Discounting.

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