Harrington Collection

Harrington Collection

Introduction (Background) – Define the problem

Harrington Collection makes high-end women’s clothes, their 2007 sales were very disappointing and they want to improve sales for next year. An idea they want to explore is increasing sales by expanding a new product line of “active gear” which would be cheaper quality but it’s a style of clothing that is trendy at the moment. However, the Strategic Planning Director believes it is not a sound long-term strategy. She believes it will strain resources and doubt they can produce enough sales to break even at first year -end.

This also raises another question by expanding the clothing line it would be a departure from Harrington’s high-class roots and alienate their customers. However, if the sales trends continue Harrington Collection need to find new ways to make profits and be an industry leader.

The objective is to analyze the data if they will make money by launching a new active wear product line. We analyzed it by

1. Break even analysis

After the data was completed Harrington concluded that it would launch its new active wear line in 2009.

2.

3. Access Trade and competitor reactions

Notes: Research: Qualitative, Quantitative, Surveys and focus groups shows

- Tore a part one of competitors “better” clothes and found the garment to be poorly made. She will was it once and be appalled. Although Harrington standards were of higher quality 95% of purchasers were satisfied with the products durability, feel, fit and look.

- Active wear inventory from department stores had an inventory turnover rate of almost twice the rate of Harrington Collection apparel. In addition markdowns are not extreme.

- To avoid alienating their high-end reputation and retailers they would market their active wear as “high end” active wear, one of their competitors of “high end active wear is Liz Claiborne’s Juicy Couture.”

- Surveys and focus groups by Harrington revealed that their...