tommy hilfinger builds a true global brand

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 2009

BUILDING A TRUE GLOBAL BRAND

KATE TERRY EVP GLOBAL ECOMMERCE/INTERNET

GLOBAL ECOMMERCE SUMMIT OCTOBER 2009

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 20092

HOW TOMMY HILFIGER IS BUILDING AN ORGANIZATION AND INFRASTRUCTURE TO

BECOME A GLOBAL ONLINE BRAND AND ECOMMERCE SUCCESS.

BUILDING A TRUE GLOBAL BRAND

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 20093

BACKGROUND

CHARGE

DECISIONS

STRUCTURE

RESULTS

PITFALLS

BUILDING A TRUE GLOBAL BRAND

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 20094

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

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 20095

BACKGROUND

CORPORATION

Tommy Hilfiger USA Tommy Hilfiger BV

Tommy Hilfiger Group

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 20096

BACKGROUND

CORPORATE MARKETING

Global Ad Campaign

Local PR/ Marketing

Local PR/ Marketing

Local PR/ Marketing

Local PR/ Marketing

Local PR/ Marketing

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 20097

BACKGROUND

INTERNET STRUCTURE

shoptommy.com tommyhilfiger.xxeurope.tommy.com

retail

retail

tommy.com

$ €

marketing

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 20098

BACKGROUND

INTERNET MERCHANDISING

25%

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 20099

BACKGROUND

CHARGE

DECISIONS

STRUCTURE

RESULTS

PITFALLS

BUILDING A TRUE GLOBAL BRAND

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200910

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]

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200911

BACKGROUND

CHARGE

DECISIONS

STRUCTURE

RESULTS

PITFALLS

BUILDING A TRUE GLOBAL BRAND

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200912

DECISIONS EFFICIENCIES

US

EU

BRANDING

ECOMMERCE

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200913

Platform

Operations

Merchandising

Service

Marketing

User Interface/Look & Feel

DECISIONS CENTRALIZE

v DECENTRALIZE

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200914

DECENTRALIZE

Local Expertise

Division of Labor

Cleaner P&L

CENTRALIZE

Cohesive Message

Cost Savings

Simpler Process

DECISIONS

CONSIDERATIONS

Given Timing Leave Well Enough Alone

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200915

Platform

Operations

Merchandising

Service

Marketing

UI/Look & Feel

DECISIONS CENTRALIZE v DECENTRALIZE

65% 35%

EUUS ROW ?

EUUS ROW

65% 35%

55% 45%

100%

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200916

DECISIONS PLATFORM DECENTRALIZE

•

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

EUUS ROW ?

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200917

DECISIONS OPERATIONS DECENTRALIZE

•

Already set up in EU and US separately

•

Outsourced fulfillment

•

Local expertise

•

Timing better to leave separate

EUUS ROW

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200918

DECISIONS MERCHANDISING CENTRALIZE

•

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

65% 35%

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200919

DECISIONS SERVICE CENTRALIZE

•

Cohesive service offering

•

Simpler process communicating one message

•

Satisfy global shopper

•

Leave 35% for local nuance –

ship methods,

payment methods, local promotions, etc.

65% 35%

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200920

DECISIONS MARKETING SPLIT

•

Cohesive marketing message

•

Cost savings creating unified online campaign

•

Simpler process

•

SEA management most effective localized

•

Some localized promotional activities

55% 45%

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200921

DECISIONS UI LOOK & FEEL CENTRALIZE

•

Cost savings creating one design

•

Cost savings assessing one user interface

•

Simpler process to create / implement

•

Cohesive brand message to consumer

100%

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200922

BACKGROUND

CHARGE

DECISIONS

STRUCTURE

RESULTS

PITFALLS

BUILDING A TRUE GLOBAL BRAND

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200923

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

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200924

STRUCTURE

INTERNET STRUCTURE BEFORE

shoptommy.com tommyhilfiger.xxeurope.tommy.com

retail

retail

tommy.com

$ €

marketing

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200925

tommyhilfiger.xxtommy.com

$

€

STRUCTURE

INTERNET STRUCTURE AFTER

= new

GroupRetail Retail

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200926

STRUCTURE

INTERNET STRUCTURE DETAIL

•Operations•Marketing•Planning•Merchandising (dotted to EU)

•Creative•Project Management

•Analytics

•Operations•Marketing•Planning•Merchandising

US EU

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200927

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

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200928

BACKGROUND

CHARGE

DECISIONS

STRUCTURE

RESULTS

PITFALLS

BUILDING A TRUE GLOBAL BRAND

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200929

tommy.com

$

tommyhilfiger.xx

€

RESULTS

GLOBAL IDENTITY & UNIFIED URLs

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200930

RESULTS

COORDINATED MERCHANDISING

60%

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200931

RESULTS

LOCAL NUANCE

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200932

RESULTS

LOCAL NUANCE

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200933

RESULTS

LOCAL NUANCE

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200934

RESULTS

COMMERCE v BRANDING

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200935

RESULTS

COMMERCE v BRANDING

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200936

RESULTS

LOCAL v GLOBAL MARKETING

RE-ENGAGEMENT CAMPAIGN

“REASONS TO SHOP….”

PRODUCT PROMOTIONS

LOCAL PARTNERSHIPS

LOCAL SALE PERIODS

LOCAL PARTNERSHIPS

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200937

RESULTS

LOCAL v GLOBAL MARKETING

LOCAL MEDIA

LOCAL EMAIL SERVICE & STRATEGY

LOCAL MEDIA

LOCAL EMAIL SERVICE & STRATEGY

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200938

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

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200939

BACKGROUND

CHARGE

DECISIONS

STRUCTURE

RESULTS

PITFALLS

BUILDING A TRUE GLOBAL BRAND

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200940

PITFALLS ECOMMERCE v BRANDING

$

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200941

PITFALLS US v EUROPE

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200942

PITFALLS HIRING

= existing = new hires

= open to hires

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200943

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

M a r k e t i n g P l a n F Y 0 6GLOBAL ECOMMERCE SUMMIT OCT 200944

THANK YOU