Marketing Planning Assignment: Tommy Hilfiger Product Development Plan

This report provides a comprehensive marketing plan for Tommy Hilfiger, focusing on the development of a new product. The report begins with an introduction to marketing planning and its importance in achieving business objectives, particularly for a global brand like Tommy Hilfiger. It then delves into the evolution of marketing planning approaches, differentiating between traditional and modern methods. The report assesses internal and external factors influencing marketing planning, including SWOT and PEST analyses, to evaluate the brand's strengths, weaknesses, opportunities, and threats. Furthermore, the report explores the role of marketing plans within corporate strategy, outlining the objectives for the new product development, which involves eco-friendly bags in Australia, the report covers strategic planning and marketing plan for the new product. The report includes an executive summary that encapsulates key aspects of the marketing plan, which is followed by a conclusion summarizing the findings and recommendations, along with references to the sources used.

MARKETING
PLANNING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1.................................................................................................................................................3
1.2.................................................................................................................................................4
1.3.................................................................................................................................................5
1.4.................................................................................................................................................6
TASK 2............................................................................................................................................7
TASK 3............................................................................................................................................7
3.1.................................................................................................................................................7
3.2.................................................................................................................................................8
3.3.................................................................................................................................................8
3.4.................................................................................................................................................9
3.5.................................................................................................................................................9
TASK 4..........................................................................................................................................10
4.1...............................................................................................................................................10
4.2...............................................................................................................................................11
4.3...............................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Marketing planning is a systematic process through which the organization can formulate
their strategies. This assists in avoiding future uncertainties and achieving objectives of the
business (Warner, Homsy. and Morken, 2016). Further, it promotes the operations of business in
market which increases success of the business. Present report is based on Tommy Hilfiger
which is the world largest designer textile industry. They operate in international market which is
recognized for doing operations in different styles (COMPANY OVERVIEW, 2015). Present
report covers marketing plan for development of new product of the organization. Furthermore,
it explains techniques for new product development and description of the brand which cited
firm wants to develop. Moreover, it covers ethical issues which influence the marketing
planning. In addition to this, it emphasizes on marketing objectives which helps to enhance goals
of the business.
TASK 1
1.1
Tommy Hilfiger focuses on their product line of textiles such as silk fabric, cotton fabric,
jute fabric and nylon fabric, etc. These products are intended to use by the customers at regular
basis. In order to evaluate changing approach, marketing planning of Tommy Hilfiger considers
the following process:
 Traditional marketing planning: Selling concept relay on common business orientation
which considers consumers and business (Charney, 2015). According to this plan, chosen
organization sell product which they made. This is because they only emphasizes on
selling the product not focus on customers’ requirements. At starting stage, cited business
promotes their marketing plan only for salling of the business but now onwards they
mainly focus on customers desires towards the products.
 Modern marketing planning: This method is used to for satisfy customers needs and
wants after analyzing their expectation. According to this marketing planning, Tommy
Hilfiger uses more effective tools and techniques than the competitors (Chang and Li,
2013). Through this, they can create customer value in terms of delivering the products.
They also communicate to the people of selected target market. Further, cited firm does
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research about the customer preference such as their needs, wants and interest towards
the product so that they make the product accordingly. This will helps to them to make
effective marketing plan for their business.
 Changing approach to marketing planning: According to this concept, Tommy
Hilfiger is required to select perfect product for satisfying customers wants (Shivaie,
Sepasian and Sheikh‐El‐Eslami, 2013). Manger of the cited firm focuses on production
concept so that they will be able to achieve high production efficiency at very low cost.
1.2
Capabilities planning involve current and future needs from the market activities of
Tommy Hilfiger. . In this context, they include review of organizational resources which is done
on the basis of following categories: Financial capabilities: Financial capabilities involve combination of attitude,
knowledge, skills and self efficiency which are required for the management to make
money decisions in the business. Through financial capabilities Tommy Hilfiger can
make their budget plan which helps to them enhance marketing activities of future needs.
Financial capabilities helps to identify financial decisions and capital structure which
helps in future marketing activities. (What Is “Financial Capability?”, 2013). Physical Capabilities: Physical capabilities involve individual capacity which helps to
undertake the physical task. This is needed in Tommy Hilfiger for carrying out their daily
living operations. It helps to enhance and maintain their capabilities to perform various
activities in the business. In the business, manager is required to understand abilities of
employees which will lead to do certain task of the firm. In context of physical
capabilities' organization require various abilities such as employee performance,
intellectual skills towards the business and many more for executing the task properly.
With the help of physical capabilities' organization find active resources for business
which assists to marketing activities of business (Jemeck and Ha, 2014).
 Human capabilities: Human capabilities refer to the progress of an individual which
assists to develop growth of business. In order to achieve targets of cited business,
organization create environment which help in human development. Through this
Tommy Hilfiger can make their future marketing plan which assist to enhance future
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marketing activities. For development of human capabilities' government make some
academics and practitioners that seek to build successful organization (Glynn and Taplin,
2013).
1.3
In order to evaluate internal and external factors which affect the marketing planning of
Tommy Hilfiger are as follows:
Internal factors
This refers to factors which exist within the marketing of business firm. These are
controllable by the firm because they affect in the organization. In this context, below are the
factors includes in Tommy Hilfiger environment:
 SWOT analysis: Tommy Hilfiger has strong position to get raw material from the
marketplace (Pozo, Sauma and Contreras, 2013). They also have cheap labours that are
having strong entrepreneurial skills.. Thus, it will influence to enhance market in which
organization can make plan for their company. Further, they are more dependent on
cotton because in their market cotton is rarely available. The infrastructure is also poor
so they are not efficiently able to export their textile chain. The major opportunity is that,
cited firm is growing industry so that they grow business every year at a rate of 3 to 4%.
They also have the opportunity in high value items by producing more and more
technologically superior products. Beside this, the business increase seasons cycle every
year so fashion cycle decreasing day by day (Brown, 2013). With the help of marketing
plan cited business can do research for identify strength, weaknesses, opportunities and
threats. Thus, they will able to find loopholes of their company.
External factors
External factors are those which not controllable by the organization, their success
depend on the large extension to the environment. In this context, below are the factors which
consist by external marketing environment of Tommy Hilfiger:
 PEST analysis: Pest analysis is major part of environment scanning scenario of
management of business which consist political, economical, social and technological
factors (Rudion, Orths and Eriksen, 2013). Through this analysis chosen organization
able to understand various macro environment factors that helps to grow the business in
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marketplace. Political factors refers to the ways in which government can interfere in
term of laws and tax policies. This is because, government change their tax rate every
year so it creates big impact on the cited firm that they have to pay taxes according to the
structure of pay rates. According to marketing plan, the business can maintain their
operation regarding political issues. In this context, Tommy Hilfiger make their funds for
paying taxes to the government. Economic factors refers to exchange rates and inflation
rates. It will impact on the growth and development of business through cited firm make
their decisions (Nielsen, 2016). Social factors refers to the society behaviours which
impact on the population that it will grow. Thus, when social trends change it will affect
to the business products and services. In addition to this, technological factors refers to
how technology change that will impact on production that Cited business need to
improve their quality of product or services which they offer. This is because every
customers wants advance technology in the products and services. Thus, with the help of
these aspects cited business can find advance technological factors through they can
provide upgrade services to customers (Liu and Roberts, 2013).
1.4
Tommy Hilfiger can use SWOT for monitor their strength, weaknesses, opportunities and
threats. These helps to enhance growth of business in different markets in which they operate
their operations. They can do their functions in Dubai market. Thus, through strength
organization can find useful information which assists to identify attributes by they can achieve
goals of business. With the help of weaknesses, company identify aspects which are harmful
towards the objectives. Opportunities are the external parameters through which organization can
achieve their objectives (Qiu, Dong and Wong, 2014). Further, threats are also external elements
which can damage objectives of the business. Thus, cited firm can make their plan according to
new market in which they operate. In the new market, business has following internal factors that
they identified:
Strength Weaknesses
Strong reputation
Loyalty of customers
High cost of media
Lose market share price
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Superior services Lack of brand products
Opportunities Threats
Introduce new products
Deliver value-added services
Provide various offers to the market
Many competitors
Fluctuation of currency
New entrants in marketplace
PEST analysis
Due to the change of political factors, government has power as they can change their
rules and regulations any time (Cuca, Brumana and Sesana, 2014). Laws affect to the new
policies which directly affect to the Tommy Hilfiger because they trade in different marketplace.
This is because, it will help to make market plan according to rules and regulations of Dubai
market. Along with this, economic factors affect to the growth of company due to many reasons
such as interest and exchange rates. This is because, exchange rate are different in various
country so that create big matter at what price organization have to sold their product in market.
Social factors affect to culture of different region because people will have different style, trends
and preference, etc. (Keay, Rhys and Sioshansi, 2013). New technology increase productivity of
company and make business ahead from competitors. Thus, this create big impact on
organization to deliver new product in marketplace. Different country has various rules which
are differed from other nation. PEST analysis affect in planning of firm operations because they
need to follows all rules and regulations according to country.
TASK 2
Covered in ppt.
TASK 3
Executive summary
Marketing plan is formal structure outline of a company that giving information regarding
product and services of business. It also demonstrates activities of organization that perform
by the firm for completing objectives of their company. Tommy Hilfiger provide fabrics,
designer wear, denim and cosmetics products, etc. They can expand their market for new
product development in Australia (Jemeck and Ha, 2014).
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Role of Marketing Plan in Corporate Strategy:
3.1
Corporate and marketing strategies focus on development, pricing and distribution
facilities of products which are adopted by the business. In both the strategies has relationship
which are as follows:
Focus: Corporate strategies of Tommy Hilfiger focus primarily on profits of the business.
Marketing strategies refers to plans which involve selling of the products which helps to enhance
profits of the business. Thus, both strategies focus on profits of business.
Assessment: Corporate strategies access for the new technology which is adopted by the
organization for achieving their goals. Marketing strategies assess to the cheaper products which
can be used by update technology for enhance growth of the company. With the helps of advance
technology, both strategies of Tommy Hilfiger will able to increase growth of business.
Target: This strategies target to achieve maximum goals of the business. Marketing strategies
also considered targets which help to achieve objectives of the organization. Both strategies
assist to target potential customers so that cited business will able to achieve maximum
objectives of the company.
Contact: This strategy has contact with the customers for satisfying their needs and wants from
the operations of business. Marketing strategies also have contact with customers through
business can achieve maximum output from their operations.
Objectives of new product of business
 To establish new product that is waterproof eco-friendly bags in Australia.
 To make people understand about the importance of using eco-friendly bags.
 To make differentiation among its competitors at Australia.
 To increase sales of the product in Australia market.
3.2
Strategic planning is process through which the organization can develop and support
their functions to achieve goals of the Tommy Hilfiger. Corporate strategies are the most
important aspects of business because it helps to achieve current and future goals of the business.
Thus, it helps to enhance market share which helps to grow their business in new directions. For
developing plan which support to business helps to achieve specific goals of business. In this
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context, organization establishes their brand in Dubai market, so that they can provide their
waterproof product in this place. This is because their main aim is to make eco-friendly product
for save environment (Allmendinger and Haughton, 2012). Through this they can make sure
understand regarding products to the people of Dubai. Along with this, organization can develop
their physical resources such as plant, machinery and other equipments for producing products.
Further, marketing strategies helps to achieve enhance growth of sales of eco-friendly products.
This is innovation of chosen business, so that they will able to stay ahead of the
competition. Through the marketing strategy cited firm can identify needs, wants and
requirements of the customers, so that they easily offer them products and services through
which customers are satisfied (Hollensen, 2015). This will be helpful to make differentiate their
products from their competitors and it is beneficial to environment as well. This is because they
use eco-friendly material.
Techniques for New Product Development
3.3
For development of new product Tommy Hilfiger can use different means through which
they can develop their product in the market. They can develop their new product as waterproof
bags which are developed by eco-friendly material (Nijssen and Frambach, 2013). In this
context, below are the elements which they can use:
 Experimentation: Through experiments, organization can learn in the best way which
helpful to taking best result for Tommy Hilfiger. They can take actions for discover
whether new product or business program will succeed in the context of development.
Generally experimentation based on scientific quotas but it will be helpful to find the
problem (Wood, 2013). With the help of this, cited firm can find cause and effect of new
product development in another marketplace.
 Test marketing: For every market of business test marketing is helpful to identify
whether organization have to establish their product. This is assists to find the problem
regarding development of product of Tommy Hilfiger. In this technique cited firm can
take small part of market for testing the product. On this basis, organization relying to
many judgements. Further, they also promote test for technology which is required for
development of new product (Warner, Homsy and Morken, 2016).
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Product Description:
For development of product Tommy Hilfiger need to focus on ideal buyer for their
company. In this context they have induced to customers with the benefits of products which
they provide to them. Beside this, they need to determine product qualities and features which
customers are using. In this context, cited business describe benefits, size, colour and packaging
for products. With the helps of these descriptions' customer solve problem related with using
products.
3.4
There are different set of pricing strategies which can be used by Hilfiger. In order to
establish new product in the market, firm should make use of market penetration method. This is
a type of pricing strategies in which price of the product is kept low at the initial stage. When
people gets to know about the products andthat time sales increases, then price is also raised.
This is one of the most effective pricing strategies that enable to cover huge market in less time.
This way cited firm will be able to cover all the areas in Australia in speculated time period. In
addition to this, the sales will be raised drastically and they will be able to achieve their
objectives. In this context target market of chosen organization is women and children. This is
because, in rainy seasons they face problem to carry their bags (Charney, 2015).
Distribution Strategy:
In order to achieve the objectives set by the organization, management will aim at
delivering their product at the new market that is Australia. Further, to raise the sales,
management will make use of online selling. The rate of internet users are high and so providing
products online will enable the firm to make the products reach to the customers easily. In
addition to this, cited firm will also make use of physical stores. There are many retailers in
Australia and they will distribute the product on these retails which will be helpful for people to
reach out the products that is eco-friendly waterproof bags (Chang and Li, 2013). This way firm
will be able to achieve their objective or raising their sales and to be different from their
competitors.
Communication Strategy:
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There are various sources that can be used by cited firm that is Hilfiger to convey the
information regarding the new product that has to be delivered. In this context, organization will
make use of newspaper, social media, radio and print media with the help of which information
will be conveyed regarding the new type of bags that Hilfiger wants to deliver. Internet will be
used more specifically as it enables to know perception of people. With this respect, changes can
be made in the products if some kind of suggestion happen to be provided by customers (Shivaie,
Sepasian and Sheikh‐El‐Eslami, 2013). Making changes as per customers' requirement will
enable the organization to achieve their goals and to be competitive when compared with its
competitors.
Implementation
3.5
Organization can be make use of diverse set of metrics through which performance can
be measured. In this context, management can make use of customers satisfaction score. This is a
type of tools in which questions are asked regarding the product to people who have used the
product. This will enable to identify the performance level or level of satisfaction that consumers
have gained through the product. Another metrics that can be used is productivity. It will help to
know the total products that has been developed and sold to the customers. With the help of this
metrics organization will identify that there are gaining profit or issues which they are facing for
loss of business (Glynn and Taplin, 2013).
Ethical consideration
4.1
Marketing is the best fundamental aspect which help to putting best image of
organization in front people. It considers various products and services which Tommy Hilfiger
introduced in market. Beside this, they should be truthful about the products and services which
they provide to customers so that ethical issues will not occur. For instance, marketing tactics not
be stressful and complicated for consumers to purchase their products or services. Further,
organization not to biased them to purchase the products (Pozo, Sauma and Contreras, 2013). In
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this context, below are the elements which considered ethical issues and which influence to
marketing planning:
Employee behaviour: Every business faces issue of employee behaviour for their
customers. In Tommy Hilfiger, face issue related behaviour of employees with customers. Thus
employees not behaving politely with them. In this context, cited business needs to manage these
issues for providing better services to customers. For example, if employees discriminate to the
employees on the basis of gender, disability and age etc. according to the ethical fundamental
they have to treat all the customers same and not discriminate to their customers. This is because,
marketing planning has focus on customers' satisfaction so that they have to eliminate
discrimination from the company (Brown, 2013).
Working conditions: In addition to employee behaviour, organization have to provide
appropriate working conditions to employees. This is because, if employees satisfied with the
working conditions they will be able to achieve market goals of Tommy Hilfiger. For instance,
employers must be aware about safety of working environment for their employees. They need
to take safety at workplace where their employees are working (Nielsen, 2016).
4.2
Ethical means various things which are differed for every person which influence to
marketing planning. In this context, below are the example of ethical issues which can be exist in
Tommy Hilfiger: Discrimination: Discrimination takes place when organization not treats same to all the
person. In this context, cited firm make difference between female and male. For example
women cannot work properly as men can do. Treating differently to female from male
based on their gender which can be reason for harassment (Keay, Rhys and Sioshansi,
2013). In this situation cited firm need to respond very carefully and require eliminating
discrimination of male and female. This create negative impact on company that they will
unable to make effective plan for their business.
 Negligence: Many times' organization neglect to the person due to rush or stress etc. In
Tommy Hilfiger this scene can be occur which create ethical issue in their business.
Thus, they will fail to properly investigate which create matter of negligence which
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support to breach of ethical issue and legal duty. As results, organization unable to make
proper marketing plan for their business.
4.3
Enhancing in consumer purchasing power some ethics are developed which contribute in
effective marketing planning of the business (Wood, 2013.). Following are the example of
consumer ethics and effects on marketing planning of Tommy Hilfiger:
 Return on merchandising: Customers have been increasingly and intentionally return
the products which they not use or faults occur after using them. This create negative
impact on marketing planning of chosen business as they are fail to introduce new
product to the customers.
 Mis-redemption of vouchers: Customers sometime reuse old vouchers for products not
purchase by them from the cited firm. Thus, Tommy Hilfiger will unable to recognise
new product In the market plan because sometimes customers refers old vouchers.
 Software copying: Customers also copying some products which they not purchase by
the company (Hollensen, 2015). Some times customers copying software of the business
for getting same services as organization provide. It generates negative impact on
marketing plan of cited business as they will unable to sell their products in market.
 Recording of music and videos: This is another example of customers issue, in which
they record music from shops without permission. At place of cited business, customers
copy music and videos so it creates big negative impact on company operations. As they
are fail to make differ musics so marketing planning not recognise the company (Glynn
and Taplin, 2013).
CONCLUSION
From the above report it can be concluded that various changing approach of marketing
planning are used by the cited firm. In this context, it includes traditional and modern marketing
planning. Modern planning is best which focuses on the customers' satisfaction. Furthermore, it
summarized various capabilities of marketing planning use for future market activities
development such as human, physical and financial. Moreover, it includes various factors which
affect the organizational performance. In this context, cited firm uses SWOT and PEST analysis
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for developing the product in new market. In addition to this, it includes barriers which are faced
by the manager in cited business such as environmental, cultural and cognitive. At last, it
summarizes ethical issues which influence the business operations such as discrimination and
negligence.
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