Harrington Collection

Harrington Collection

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Harrington Collection Case Analysis |
Stephanie Smith |
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MK-4900: Barksdale |
6/19/2013 |

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  I. Situation Analysis:
      A. Industry: 1 unit = 0.5 hoodie, 1.5 T-shirts, 1 pair of pants
        i. 2007 Industry sales:
            * $133 billion in women’s apparel
            * 1,461.5 million units of women’s apparel
              * 82% of industry sales come from imports
            * Active-wear: 7.5 million units
            * “Moderate” and “Budget” classifications:
              a. Volume: 6 Million Units
              b. Market Share =   80% of active-wear market
        ii. 2009 Industry Sales Volume Estimates:
            * Expected growth rate: 4.2%
            * Active-wear sales volume estimated at 15 million units
            * 200% growth from 2007
            * Women’s active-wear in “Better” classification:
              a. Volume: 6,000,000 Units
              b. Market Share: 40% of active-wear market
              c. Average Price Point: Just below 100
        iii. Competition:
            * Liz Claiborne
              * 396 retail stores
              * Diversified brand portfolio
            * Jones Apparel Group
              * 338 retail stores
              * Diversified brand portfolio
      B. Company: Harrington Collection
        i. Expected Market Share for Vigor active-wear line: 7%
        iv. Vigor’s expected sales volume in 2009:
            * 420,000 units in the “Better” classification for women’s active wear
            * $39,900,000 in the “Better” classification for women’s active wear
      C. Trends:
        ii. Mature market: Short product life cycles
        iii. Increased price pressure for firms
            * 50% of all women’s apparel is purchased on sale
            * Outsource production for low cost labor
        iv. Rapid growth of demand for contemporary athletic fashions

  I. The Problem/Decision:
      D. Will the Vigor division of...

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