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Tommy Hilfinger builds a true global brand
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Tommy Hilfinger builds a true global brand

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From the 2009 Monaco session

From the 2009 Monaco session

Published in Business , News & Politics
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  • 1. BUILDING A TRUE GLOBAL BRAND KATE TERRY EVP GLOBAL ECOMMERCE/INTERNET GLOBAL ECOMMERCE SUMMIT OCTOBER 2009 Marketing Plan FY06 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 2. BUILDING A TRUE GLOBAL BRAND HOW TOMMY HILFIGER IS BUILDING AN ORGANIZATION AND INFRASTRUCTURE TO BECOME A GLOBAL ONLINE BRAND AND ECOMMERCE SUCCESS. Marketing Plan FY06 2 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 3. BUILDING A TRUE GLOBAL BRAND BACKGROUND CHARGE DECISIONS STRUCTURE RESULTS PITFALLS Marketing Plan FY06 3 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 4. BACKGROUND CORPORATION • Tommy Hilfiger is a global sportswear company started in 1985 in USA • Current HQ: Amsterdam • Annual Retail Sales value of over € 4.0 billion • Selling in 65 countries worldwide • 900 Tommy Hilfiger stores worldwide • 8500 employees worldwide Marketing Plan FY06 4 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 5. BACKGROUND CORPORATION Tommy Hilfiger Group Tommy Hilfiger USA Tommy Hilfiger BV Marketing Plan FY06 5 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 6. BACKGROUND CORPORATE MARKETING Global Ad Campaign Local PR/ Local PR/ Local PR/ Local PR/ Local PR/ Marketing Marketing Marketing Marketing Marketing Marketing Plan FY06 6 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 7. BACKGROUND INTERNET STRUCTURE $   € shoptommy.com tommy.com europe.tommy.com tommyhilfiger.xx       retail marketing retail Marketing Plan FY06 7 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 8. BACKGROUND INTERNET MERCHANDISING 25% Marketing Plan FY06 8 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 9. BUILDING A TRUE GLOBAL BRAND BACKGROUND CHARGE DECISIONS STRUCTURE RESULTS PITFALLS Marketing Plan FY06 9 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 10. CHARGE UNIFIED TEAM & UNIFIED FOCUS Created EVP position: • Reporting to TH Group • Responsible for Global Ecommerce & Internet • To create balanced focus Ecommerce/ Branding [heavy on the commerce] Marketing Plan FY06 10 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 11. BUILDING A TRUE GLOBAL BRAND BACKGROUND CHARGE DECISIONS STRUCTURE RESULTS PITFALLS Marketing Plan FY06 11 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 12. DECISIONS EFFICIENCIES US BRANDING EU ECOMMERCE Marketing Plan FY06 12 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 13. DECISIONS CENTRALIZE v DECENTRALIZE Platform Operations Merchandising Service Marketing User Interface/Look & Feel Marketing Plan FY06 13 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 14. DECISIONS CONSIDERATIONS CENTRALIZE DECENTRALIZE Cohesive Message Local Expertise Cost Savings Division of Labor Simpler Process Cleaner P&L Given Timing Leave Well Enough Alone Marketing Plan FY06 14 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 15. DECISIONS CENTRALIZE v DECENTRALIZE Platform US EU ROW ? Operations US EU ROW Merchandising 65% 35% Service 65% 35% Marketing 55% 45% UI/Look & Feel 100% Marketing Plan FY06 15 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 16. DECISIONS PLATFORM DECENTRALIZE US EU ROW ? • Already set up in EU and US separately • Outsourced: SAAS + Full Service Set Up • Timing better to leave separate • Good source of comparison • Allow time for assessment Marketing Plan FY06 16 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 17. DECISIONS OPERATIONS DECENTRALIZE US EU ROW • Already set up in EU and US separately • Outsourced fulfillment • Local expertise • Timing better to leave separate Marketing Plan FY06 17 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 18. DECISIONS MERCHANDISING CENTRALIZE 65% 35% • Centralized assortment / decentralized planning • Cost savings to create content for US & EU • Cohesive message • Leave 35% for local nuance & local expertise • Local buying for cleaner P&L Marketing Plan FY06 18 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 19. DECISIONS SERVICE CENTRALIZE 65% 35% • Cohesive service offering • Simpler process communicating one message • Satisfy global shopper • Leave 35% for local nuance – ship methods, payment methods, local promotions, etc. Marketing Plan FY06 19 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 20. DECISIONS MARKETING SPLIT 55% 45% • Cohesive marketing message • Cost savings creating unified online campaign • Simpler process • SEA management most effective localized • Some localized promotional activities Marketing Plan FY06 20 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 21. DECISIONS UI LOOK & FEEL CENTRALIZE 100% • Cost savings creating one design • Cost savings assessing one user interface • Simpler process to create / implement • Cohesive brand message to consumer Marketing Plan FY06 21 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 22. BUILDING A TRUE GLOBAL BRAND BACKGROUND CHARGE DECISIONS STRUCTURE RESULTS PITFALLS Marketing Plan FY06 22 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 23. STRUCTURE CONSIDERATIONS • Centralized offering easiest to execute with centralized team • Separate P&L requires some decentralization • Cost savings with global positions • Kept headcount tight for flexibility • Keep tail attached to dog Marketing Plan FY06 23 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 24. STRUCTURE INTERNET STRUCTURE BEFORE $   € shoptommy.com tommy.com europe.tommy.com tommyhilfiger.xx       retail marketing retail Marketing Plan FY06 24 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 25. STRUCTURE INTERNET STRUCTURE AFTER $ € tommy.com tommyhilfiger.xx Group Retail Retail        =  new Marketing Plan FY06 25 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 26. STRUCTURE INTERNET STRUCTURE DETAIL US  EU        •Operations •Creative •Operations •Marketing •Project •Marketing •Planning Management •Planning •Merchandising •Analytics •Merchandising (dotted to EU) Marketing Plan FY06 26 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 27. STRUCTURE COLLABORATIVE SET UP • Isolate ego-authorship from local-expertise • Opinions of many decisions of one • Group goals • Intradepartmental • Interdepartmental – Corporate Marketing, Countries, Divisions, Vendors Marketing Plan FY06 27 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 28. BUILDING A TRUE GLOBAL BRAND BACKGROUND CHARGE DECISIONS STRUCTURE RESULTS PITFALLS Marketing Plan FY06 28 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 29. RESULTS GLOBAL IDENTITY & UNIFIED URLs $ € tommy.com tommyhilfiger.xx Marketing Plan FY06 29 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 30. RESULTS COORDINATED MERCHANDISING 60% Marketing Plan FY06 30 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 31. RESULTS LOCAL NUANCE Marketing Plan FY06 31 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 32. RESULTS LOCAL NUANCE Marketing Plan FY06 32 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 33. RESULTS LOCAL NUANCE Marketing Plan FY06 33 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 34. RESULTS COMMERCE v BRANDING Marketing Plan FY06 34 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 35. RESULTS COMMERCE v BRANDING Marketing Plan FY06 35 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 36. RESULTS LOCAL v GLOBAL MARKETING RE-ENGAGEMENT CAMPAIGN “REASONS TO SHOP….” PRODUCT LOCAL SALE PROMOTIONS PERIODS LOCAL LOCAL PARTNERSHIPS PARTNERSHIPS Marketing Plan FY06 36 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 37. RESULTS LOCAL v GLOBAL MARKETING LOCAL MEDIA LOCAL MEDIA LOCAL EMAIL LOCAL EMAIL SERVICE & SERVICE & STRATEGY STRATEGY Marketing Plan FY06 37 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 38. RESULTS COST SAVINGS • Savings in merging ecommerce and branding sites • Savings in content development overlap US to Europe: stories, product photography, product copy • Savings in designing one site Marketing Plan FY06 38 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 39. BUILDING A TRUE GLOBAL BRAND BACKGROUND CHARGE DECISIONS STRUCTURE RESULTS PITFALLS Marketing Plan FY06 39 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 40. PITFALLS ECOMMERCE v BRANDING $  Marketing Plan FY06 40 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 41. PITFALLS US v EUROPE Marketing Plan FY06 41 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 42. PITFALLS HIRING         = existing  = new hires = open to hires Marketing Plan FY06 42 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 43. CONCLUSION • Most of accomplishments possible because of how Internet team positioned within global organization • Aligning Internet and Ecommerce as one team enables better balance of website as marketing and commerce tool Marketing Plan FY06 43 GLOBAL ECOMMERCE SUMMIT OCT 2009
  • 44. THANK YOU Marketing Plan FY06 44 GLOBAL ECOMMERCE SUMMIT OCT 2009