Tactical Gap Analysis

The Gap

Brand Positioning

Hang Ten has positioned itself as a casual clothing brand designed for those aged between 20 to 40. It is a brand for the self-confident trendy individual that prides himself in simple and clean designs. This image is conveyed through their products, which mostly comprise of colourful funky basic polo t-shirts and cleanly designed pants that are suitable for most casual occasions.

They also carry an inclusive communitarian image through their  slogan "We're Hang Ten", suggesting that Hang Ten is ultimately formed by the people that patronise the store and everyone can be part of the Hang Ten community.

Brand Image

The brand image, unlike brand positioning, is concerned with how the community sees the brand Hang Ten and what they believe it epitomizes. Based on our quantitative and qualitative research, we discovered that that there is an evident disconnect between the positioning and brand image. As a result there are a number of challenges that have arisen for Hang Ten.

Challenges

1. Irrelevant to the target market

Based on our findings, although Hang Ten ranks high in awareness, they are not deemed as the choice casual clothing brand for the young and trendy. What's more surprising is that the young don't even believe that they are  the intended target group for the brand. Many identified Hang Ten as an "aunty brand" appropriate for the older age group looking for simple casual clothing at a reasonable price.

If Hang Ten intends to maintain its positioning as a brand for the young they have to make themselves more appealing and relevant to the young.

2. Weak communication

Hang Ten has not made much of an effort to convey their image to their target market aside from in store posters at selected outlets. As a result, their target market are left to build their perception of the brand solely based on their products. Unfortunately, from our research findings, the products alone do not speak much of the brand. It is compared to other casual clothing brands that are better marketed and as a result becomes an inferior clothing choice.

Hang Ten's challenge thus lies in how it can improve communication and value proposition with consumers such that they are educated about the brand and, eventually, form an emotional connection with Hang Ten so that the brand relationship is strengthened.

3. A washed up local brand

Many are unaware of the origins of Hang Ten and associate it with being a local brand created for the heart-landers. This may be one of the main reasons why patronage from the target market is low as image is of high importance when choosing clothing. Through our research we found out that clothing is very often an extension of the individual. Therefore, if the young believe that Hang Ten is a washed up local brand they would not want to associate themselves with it.

Bridging the Gap

In the next section, you will see proposed strategic solutions designed to bridge the tactical gap Hang Ten currently faces and risk assessment (larger number means less risky). Each solution aims to address the challenges Hang Ten currently faces and, as a result, will carry a strong marketing message to the target market, solidifying Hang Ten's brand image to an extent where individuals will be proud to wear the Hang Ten brand.

Proposed Solutions	Main Risk	Rating
#1. Retain positioning, improve communication	Deeply ingrained perceptions may not change without a large marketing overhaul.	8/10
#2. Adopt Hang Ten USA image	Potential conflict with Hang Ten (USA). Misalignment with Hang Ten (HK).	6/10
#3. Target Mature Consumers	Misalignment with Hang Ten (HK). Severance with Hang Ten’s youthful heritage.	7/10

#1 Retaining current brand positioning and identity but altering communication mix

Currently Hang Ten positions itself amongst the casual apparel retailers as trendy, simple and comfortable apparel for young adults.  We feel that Hang Ten’s current brand positioning and identity is appropriate in addressing consumer trends and innovation.  However, the key problem lies in the fact that Hang Ten has been unsuccessful in reaching out to their target segment, which is made up of young adults, and educating them about Hang Ten’s brand identity.

Hang Ten, at present, only communicates with consumers through posters at store fronts such as these.

These posters and models do not engage young adults nor educate consumers about Hang Ten's brand identity, showing weak and unclear efforts of communication. Another important factor is that these posters are the only form of communication Hang Ten has with consumers.


Hence, there is a lack of communication and thus, we can understand why an inaccurate and negative perception of Hang Ten’s brand has developed amongst their target consumers, where many identify with Hang Ten as an ‘aunty brand’ (because of their cheap clothes) or are unaware of what Hang Ten even represents.


Therefore, there is a need to align consumers’ current brand image with Hang Ten’s brand identity and this can be done by altering Hang Ten’s current communication mix to be one that is more consistent, effective and targeted at young adults.


Suggested Methods of Communication

It is important to identify the appropriate channels of communication which are popular and accepted by our target segment, as this would enable us to most effectively reach out to them. Through qualitative research done, we have identified that the following components of communication mix are highly effective in reaching out to our target segment and can be adopted by Hang Ten:

1) Endorsements

2) Sponsoring of events

3) Targeted advertisements through appropriate media channels

4) Utilization of social media platforms


Risk Factor: 8 out of 10 toes (least risky)

Such an alternative does not require an entire rebranding process and Hang Ten would be able to avoid drastic differences in its brand positioning and identity. Often when companies undergo a major brand revamping, consumers may not be as receptive and are skeptical about such an extreme makeover. Brands which stay true to their initial core brand are usually better accepted amongst consumers. In addition, Hang Ten does not need to "start from scratch" and can capitalize past strengths while improving current marketing mix to strengthen brand equity.

#2 Introducing the USA-Based Hang Ten Brand

Leveraging on Hang Ten USA's rich heritage and strong communication mix, Hang Ten will tell a different brand story of "the original board shorts" and providing consumers surf and casual wear that will make them "own the edge", thus addressing the three brand challenges.

Hang Ten USA currently targets teens and children with their exclusive line of clothing and accessories- clothing for boys in sizes 8-20, and girls 4-6x and 7-16. Hang Ten handbags, jewelry, hosiery and sunglasses are also offered by their exclusive retailer Kohl’s.

Being Relevant to the Target Market with Appropriate Communication

Hang Ten Singapore will be repositioned as authentic Californian surfwear and casual apparel for active, young people that desire comfortable and trendy designs. There would be less emphasis on "value-for-money". The new brand image will articulate Hang Ten's Californian roots and its international presence, thus removing the cheap, local image association that consumers currently have and communicating Hang Ten’s benefits to them. A strong communication mix would be employed following Hang Ten USA's style, such as push and pull marketing strategies, event sponsorship and utilizing new media platforms for advertising. These methods reach out to the intended target market of youths.

Risk Factor: 6 out of 10 toes (most risky)

However, USA-based Hang Ten is separate from Hang Ten Group Holdings Limited, which owns the Hang Ten brand in Asia Pacific region including Singapore. This separation of ownership may result in implementation difficulties as Hang Ten USA would need to sell its brand to Hang Ten Group Holdings, and they might not be keen to do so due to brand dilution concerns.

In addition to the extra cost and time required to restart a new positioning and marketing strategy, introducing the USA-based Hang Ten brand involves a total revamp of the Group strategy. Given Hang Ten Group Holdings’ current business strategy in Asia Pacific with their current product offerings and positioning (there is no relation to the original Hang Ten USA brand story) the Management would also need to consider if an adoption of Hang Ten USA branding is in line with existing corporate goals. Strategic misalignment poses one of the biggest hurdles in branding decisions, thus, this solution is assessed as most risky.

#3 Hang Ten, Your Style

In recognizing Hang Ten Singapore's popularity among mature consumers, a possible strategy to overcome the challenges Hang Ten currently faces is to realign itself to cater to mature consumers instead of the young. This new positioning would target mature middle income Singaporeans aged 30 or above to provide them with comfortable & affordable casual apparel for their recreational activities.


In order to address the communication problems previously experienced (i.e. lack of differentiation, negative perception), marketing communications for this new positioning should be targeted and consistent. 


To this end, a campaign adopting a "Your Style" theme will be implemented. The campaign will champion a shift from the perception of 'style' as equivalent to designer fashion or having trendy, edgy tones. Style can be simple, affordable and comfortable, and at Hang Ten, consumers are entitled to just that.


With such a re-positioning, the disjoint between Hang Ten's projected identity and perceived image would be reduced without running the risk of alienating a large portion of current consumers. 

Risk Factor: 7 out of 10 toes (moderate risky)

Despite the slight changes required in terms of product design (e.g. more emphasis on nude colors than bright flashy colors) and marketing communications, this move presents a drastic departure from Hang Ten Group Holding's overall positioning, which targets youths instead of middle-aged adults. Its implementation may thus be challenged by the Group, although to a lesser extent than it would if the US brand-image were to be replicated. The change in target consumers, meanwhile, would also further weaken the link between the Hang Ten heritage, as it was initially conceived as a surf-wear brand for Californian youths.


Bringing Hang Ten's competitive alignment towards the mature market also brings it into direct competition with other long-established brands such as Arnold Palmer and Polo. Given Hang Ten's limited experience in catering to this market may thus present it with comparative disadvantages in terms of consumer knowledge, such as their reactions to certain marketing communications or pricing/promotion strategies. In-depth research and market testing needs to be done to appropriate the best marketing mix thus making this solution more time-consuming and costly.