tommy hilfinger builds a true global brand
DESCRIPTION
From the 2009 Monaco sessionTRANSCRIPT
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
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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
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BACKGROUND
INTERNET MERCHANDISING
25%
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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]
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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
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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%
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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 ?
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DECISIONS OPERATIONS DECENTRALIZE
•
Already set up in EU and US separately
•
Outsourced fulfillment
•
Local expertise
•
Timing better to leave separate
EUUS ROW
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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%
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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%
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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%
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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%
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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
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STRUCTURE
INTERNET STRUCTURE BEFORE
shoptommy.com tommyhilfiger.xxeurope.tommy.com
retail
retail
tommy.com
$ €
marketing
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tommyhilfiger.xxtommy.com
$
€
STRUCTURE
INTERNET STRUCTURE AFTER
= new
GroupRetail Retail
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STRUCTURE
INTERNET STRUCTURE DETAIL
•Operations•Marketing•Planning•Merchandising (dotted to EU)
•Creative•Project Management
•Analytics
•Operations•Marketing•Planning•Merchandising
US EU
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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
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BACKGROUND
CHARGE
DECISIONS
STRUCTURE
RESULTS
PITFALLS
BUILDING A TRUE GLOBAL BRAND
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tommy.com
$
tommyhilfiger.xx
€
RESULTS
GLOBAL IDENTITY & UNIFIED URLs
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RESULTS
COORDINATED MERCHANDISING
60%
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RESULTS
LOCAL NUANCE
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RESULTS
LOCAL NUANCE
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RESULTS
LOCAL NUANCE
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RESULTS
COMMERCE v BRANDING
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RESULTS
COMMERCE v BRANDING
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RESULTS
LOCAL v GLOBAL MARKETING
RE-ENGAGEMENT CAMPAIGN
“REASONS TO SHOP….”
PRODUCT PROMOTIONS
LOCAL PARTNERSHIPS
LOCAL SALE PERIODS
LOCAL PARTNERSHIPS
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RESULTS
LOCAL v GLOBAL MARKETING
LOCAL MEDIA
LOCAL EMAIL SERVICE & STRATEGY
LOCAL MEDIA
LOCAL EMAIL SERVICE & STRATEGY
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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
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BACKGROUND
CHARGE
DECISIONS
STRUCTURE
RESULTS
PITFALLS
BUILDING A TRUE GLOBAL BRAND
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PITFALLS ECOMMERCE v BRANDING
$
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PITFALLS US v EUROPE
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PITFALLS HIRING
= existing = new hires
= open to hires
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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
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THANK YOU