Harrington Case Essay

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March 31 2011 March 31 2011 Strategic Marketing Management Strategic Marketing Management Harrington Collection, Case Brief Rachel Blais Harrington Collection, Case Brief Rachel Blais 08 Fall 08 Fall Key Issue: At what price should Harrington introduce the new Vigor active-wear line? Harrington Collection has faced declining sales from 2005 to 2007. The clothing company is currently looking for ways re-strategize and boost its revenues, and it is considering doing this by creating a new active-wear clothing line to follow the latest rising trends. The proposed retail prices for pieces in the active wear line are $100 for a hoodie, $40 for a tee-shirt, and $80 for a pair of pants. Harrington needs to determine whether or not these are the optimal prices that will achieve higher profits for the new Vigor line. Alternatives 1. Introduce Vigor active-wear at proposed prices 2. Introduce Vigor active-wear at 20% higher prices than proposed prices Criteria Quantitative Criteria: * High profit margins * Sales potential * Market share potential Qualitative Criteria: * Customer satisfaction * Brand perception Alternative 1: Introduce Vigor active-wear at proposed prices Because the number of women’s active-wear units is expected to double by 2009, Harrington could take advantage of this trend by introducing active-wear to the fifty stores carrying its Vigor line of clothing. Department stores have already begun to sell active- wear at double the turnover rate that Harrington collection has been turning over. It can take this opportunity to boost its sales by following the active-wear trend. The 2009 total projected number of active-wear units is expected to be 15 million units. Of these units, 6 million are expected to come from the relevant market of the “better” classification of active-wear

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