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Harrington Collection:Project Viva Protégé Consulting
Agenda
To dedicate our team of executives and staff into providing fashionable apparel to women in the United States while ensuring speed, quality, ethics, and maintaining good relations with our customers, suppliers and shareholders.  Harrington Collection: Mission Statment
Porter’s Five
Porter’s Five
Porter’s Five
Porter’s Five
Porter’s Five
Harrington Manufacturing Divisions
Objective NOW Lowmarket share Low profit growth Low competitive advantage Slow adaptation to market VISION Highmarket share High profit growth High competitive advantage Fast adaptation to market SatisfiedCustomers Loyal suppliers Project Viva
Loyal Customer Base Leverage on Vigor’s existing brand  High speed via pull tactics Project Viva: Competitive Advantage
Project Viva? To enter the Women’s Activewear market
Harrington Manufacturing Divisions after introduction of VIVA * Made available at company stores ** After intro of VIVA
Alternatives to Project Viva
Financial Plan: Expected NPV = $6.98m Marketing Plan: Pull tactics HR Plan: Cut costs Project Viva: Scope
Investment: $12.7m Expected sales: 6m “units”/year Expected lifetime: 15 years β=1.35 Discount rate, CAPM: r = .03 + 1.35(.15-.03)   = 19.2% Expected NPV = $6.98m Project Viva: Financial
Positive NPV, resources available. Increase plowback ratio to allow more such brand expansions Increase awareness of NPV rule internally Viva: Financial Plan
Sales Projections to Macroeconomy Sales, millions of units Years
Situation Analysis
Pull tactics: Investment in market research Focus groups Web-based consumer behavior monitoring Advertising Cut back on nation-wide advertising Increase product endorsements JIT Leverage on existing customer base for short-term Expand into new markets for long-term Viva: Marketing Plan
The way it is: Push
The way it should be: Pull
JIT Mexico! Reliability, internal communication,  CRM, SRM Systems
Life cycle of a fad design Sales Quantity, 1 million/increment Time, 1 month/increment
Life cycle of a fad design Viva Athletic Wear The Trend Setter Competition from our Chinese friends Sales Quantity, 1 million/increment Time, 1 month/increment
Pulling the JIT:Working for our customers, not our designers Target Market
Viva Aura		(perfume) Viva Crown	(jewelry) Viva Diva		(makeup) Viva Bra		(lingerie) Viva Java		(tabloid magazine) To leverage on the existing loyal customer base Low risk Selling the lifestyle
Products ‘sell themselves’ ∴Cut back on excessive sales training Reduce “attractive” commissions Improved Horizontal Communication Diversify  Reward innovation and foster idea champions Human Resources
Appeal to customers’ values Allows for charging a premium Green energy solutions Project SHAL Sustainable, Healthy, Active Living Innovation and sustainability
Long-term abstract Intangible returns Ethical practices Lifestyle Integrated Branding Cork floors Recycled Receipts Customer interaction Extended offers for personal health products Project SHAL SHAL
The other brands Harrington Limited Cash Cow Christina Cole & Sopra Merger  Vigor Maintenance of slow growth
Merger of Sopra and Christina Cole “Bridge” Same target market Cut costs, free up resources Similar market share “The status-seeking office chic”
Objective NOW Lowmarket share Low profit growth Low competitive advantage Slow adaptation to market VISION Highmarket share High profit growth High competitive advantage Fast adaptation to market SatisfiedCustomers Loyal suppliers Project Viva
Implementation Cube WBS Gantt Risk Mitigation
WBS
Gantt Chart: short term
Gantt Chart: long term
Risk: Decision Tree
Objective NOW Lowmarket share Low profit growth Low competitive advantage Slow adaptation to market VISION Highmarket share High profit growth High competitive advantage Fast adaptation to market SatisfiedCustomers Loyal suppliers Project Viva
Q?
Cora Lam June Kim Johnny Dewan Protégé Consulting Thank you

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Project Viva Final

  • 1. Harrington Collection:Project Viva Protégé Consulting
  • 3. To dedicate our team of executives and staff into providing fashionable apparel to women in the United States while ensuring speed, quality, ethics, and maintaining good relations with our customers, suppliers and shareholders. Harrington Collection: Mission Statment
  • 4.
  • 11. Objective NOW Lowmarket share Low profit growth Low competitive advantage Slow adaptation to market VISION Highmarket share High profit growth High competitive advantage Fast adaptation to market SatisfiedCustomers Loyal suppliers Project Viva
  • 12. Loyal Customer Base Leverage on Vigor’s existing brand High speed via pull tactics Project Viva: Competitive Advantage
  • 13. Project Viva? To enter the Women’s Activewear market
  • 14. Harrington Manufacturing Divisions after introduction of VIVA * Made available at company stores ** After intro of VIVA
  • 16. Financial Plan: Expected NPV = $6.98m Marketing Plan: Pull tactics HR Plan: Cut costs Project Viva: Scope
  • 17. Investment: $12.7m Expected sales: 6m “units”/year Expected lifetime: 15 years β=1.35 Discount rate, CAPM: r = .03 + 1.35(.15-.03) = 19.2% Expected NPV = $6.98m Project Viva: Financial
  • 18. Positive NPV, resources available. Increase plowback ratio to allow more such brand expansions Increase awareness of NPV rule internally Viva: Financial Plan
  • 19.
  • 20.
  • 21.
  • 22.
  • 23. Sales Projections to Macroeconomy Sales, millions of units Years
  • 25. Pull tactics: Investment in market research Focus groups Web-based consumer behavior monitoring Advertising Cut back on nation-wide advertising Increase product endorsements JIT Leverage on existing customer base for short-term Expand into new markets for long-term Viva: Marketing Plan
  • 26. The way it is: Push
  • 27. The way it should be: Pull
  • 28. JIT Mexico! Reliability, internal communication, CRM, SRM Systems
  • 29. Life cycle of a fad design Sales Quantity, 1 million/increment Time, 1 month/increment
  • 30. Life cycle of a fad design Viva Athletic Wear The Trend Setter Competition from our Chinese friends Sales Quantity, 1 million/increment Time, 1 month/increment
  • 31. Pulling the JIT:Working for our customers, not our designers Target Market
  • 32. Viva Aura (perfume) Viva Crown (jewelry) Viva Diva (makeup) Viva Bra (lingerie) Viva Java (tabloid magazine) To leverage on the existing loyal customer base Low risk Selling the lifestyle
  • 33. Products ‘sell themselves’ ∴Cut back on excessive sales training Reduce “attractive” commissions Improved Horizontal Communication Diversify Reward innovation and foster idea champions Human Resources
  • 34. Appeal to customers’ values Allows for charging a premium Green energy solutions Project SHAL Sustainable, Healthy, Active Living Innovation and sustainability
  • 35. Long-term abstract Intangible returns Ethical practices Lifestyle Integrated Branding Cork floors Recycled Receipts Customer interaction Extended offers for personal health products Project SHAL SHAL
  • 36. The other brands Harrington Limited Cash Cow Christina Cole & Sopra Merger Vigor Maintenance of slow growth
  • 37. Merger of Sopra and Christina Cole “Bridge” Same target market Cut costs, free up resources Similar market share “The status-seeking office chic”
  • 38. Objective NOW Lowmarket share Low profit growth Low competitive advantage Slow adaptation to market VISION Highmarket share High profit growth High competitive advantage Fast adaptation to market SatisfiedCustomers Loyal suppliers Project Viva
  • 39. Implementation Cube WBS Gantt Risk Mitigation
  • 40. WBS
  • 44. Objective NOW Lowmarket share Low profit growth Low competitive advantage Slow adaptation to market VISION Highmarket share High profit growth High competitive advantage Fast adaptation to market SatisfiedCustomers Loyal suppliers Project Viva
  • 45. Q?
  • 46. Cora Lam June Kim Johnny Dewan Protégé Consulting Thank you