Harrington: Cost and Variable Costs Essay Example

Harrington, established in the 1960s, gained a reputation for high quality, knowledgeable sales staff, and designer styles. The brand has loyal customers and a premium reputation. Wearing Harrington labels signifies both status and fashion-forwardness. Overall, the active-wear market has a small but rapidly growing segment in the "better" category.

Harrington should seize the opportunity for diversity in its market share and enter the market promptly. With its brand influence, exceptional quality and styling, and cutting-edge technology, Harrington has a significant chance to become a crucial player in this profitable segment. Speciality stores and department stores are still the main retailing channels in the women's clothing market, creating potential channel conflicts and challenges. Department stores can benefit from the lucrative inventory turnover rate generated by Harrington's extensive national advertising efforts.

On the other hand, department stores may be hesitant about selling active-wear products due to the market's newness, which poses a greater risk for retailers. Harrington can address this conflict by leveraging its relationships with retailers and marketing expertise. The survey suggests that launching a new active-wear line will have a minimal impact on cheapening Harrington's brand. Despite challenges, Harrington has a significant opportunity to expand its business into the active-wear market.

By expanding the activewear category to include "better" quality products, Harrington can leverage the comfort and fashion image that the Vigor division has already established. Additionally, outsourcing production to Mexico would not only reduce costs but also enhance the ability to quickly adapt to shifts in demand. Considering these factors, it is highly recommended that Harrington introduces a new line of active-wear.