Product Strategy

To increase the perceived quality and value of the products without changing the products themselves, Hang Ten can improve the coverage of product and discount information by using product catalogues. The following are page excerpts of Hang Ten's Summer 2011 collection. 

The product catalogue and promotional information will be published on the website. With a revamp of the Singapore website into a more informative and interactive one, this will serve to drive traffic to the webpage, thus product information will be at the centre of attention and improving product perceived quality.

Moreover, Hang Ten can engage in permission marketing by sending catalogues to members of Hang Ten by email. After-marketing services like free alteration can also further strengthen customers’ loyalty. These are low cost but effective ways of retaining customers after the purchase episode.

Channel Strategy (Place)

Hang Ten’s store locations cover most parts of Singapore and so provide it with good visibility and presence. As revealed by our prior research, what Hang Ten needs to do now is to ensure that its store elements, especially layout and product presentation, match its overall marketing programme.

Improving Store Layout:

Promotional products are prominently placed in Hang Ten stores, in a ‘bargain bin’ at the center of the stores. While this helps to push product sales, the store layout could be made more inviting and easy to navigate. The following sample store layout depicts a modern approach towards organizing the flow of the store such that it is more appealing to customers. 

We also recommend a more experiential layout to be adopted to enhance customer experience about the Hang Ten brand and strengthen their imagery perceptions. In the following example, the creative store art and neat presentation of apparel could simultaneously stimulate customers' interest and ease their browsing.

Promotions Strategy

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1) Print media

Print media costs less than television and has the potential to have greater and longer exposure. What is important here is to get the message across in three seconds (roughly the time one looks at a print ad). In terms of location, Hang Ten should place posters at areas that young adults frequent (e.g. the stretch of Orchard Boulevard, bus stops). In addition, we recommend advertising in magazines like 8 Days, Cleo and Nylon to capture the young and trendy audience.

Example: Korea’s print advertisements 

Hang Ten should keep media content simple and trendy, in line with their product offerings. As mentioned, the use of celebrities will work well for Hang Ten. The focus is on both the actor and his clothes. Apart from this, there should be elements used in the media collaterals to help give the perspective of different usage situations Hang Ten can be worn. This widens salience.


2) Interactive forms of advertising

Interactive advertising ranges from websites to online advertisements to mobile marketing. However, out of all these, we believe using a good website, and drawing users to their website is the best and most cost effective way of bridging the communication gap.

Hang Ten's Singapore Website: http://www.hangten.com.sg/index.html

Website improvements: Hang Ten’s current website is not only badly designed but is malfunctioning (none of the links work). Its static appearance communicates an unappealing demeanour and does not fulfill its function in engaging consumers. What Hang Ten should do is to employ bright and fresher colours to accentuate their basic and simple image. They should also create a story with the website, so that consumers are enticed to stay on the website and explore.

Example: Hang Ten Korea http://www.hangten.co.kr/hangten/index.asp

Not only providing and emphasizing style, the Hang Ten Korea website also includes pages such as “NEW ARRIVALS”, “STAR photos”, “Hang Ten Diary”, “Events” and even “Brand Story”. They also play videos of interviews with celebrities using Hang Ten. Using a Adobe Flash instead of a HTML website also makes it more interactive. Do visit both websites using the links to have a fuller experience.


Pull of new website: Before we get consumers to stay and interact with the website, we must first get them there. So how does a good website pull viewership? Some simple methods would be to 1) have a lucky draw where customers have to register on their website after a purchase, 2) host a competition on their website where users win a prize or 3) pair up with famous bloggers to publicize the website.


From there, pulling strength would continue if the website is constantly updated with new and relevant information. Thus, both pulling strength and website improvement have to work hand in hand to be effective.


The Advertising Timeline


Overall, we believe that Hang Ten should be selective in advertising because of their constrictive budget. Having not invested much into advertising, the new advertising campaign needs to be well-calculated and planned as a sudden increase in advertising budget could give a heart attack to the group’s director. As such, advertising could be rolled out in this order: Interactive forms of advertising followed by print media. Arranged in decreasing order of interaction and increasing order of visibility, we believe that as consumers become more aware of Hang Ten, image can be reinforced with greater degrees of interactions.

Events marketing and sponsorship

Special launch events:

We strongly recommend special events as a direct touchpoint for consumer engagement. Following Hang Ten's revamped store layout to improve the brand experience, a launch event to create hype is vital to communicate the image to customers. Special invitations will be sent to opinion leaders and Hang Ten members to showcase new collections and store revamp, thus enhancing exclusivity and garnering more interest in the brand.

Sponsoring events:


Hang Ten should follow in the footsteps of successful guerilla brands such as Red Bull and participate in event sponsorship, focussing on identifying special youth events which would help to cement Hang Ten as a brand for youths and young adults.


Some examples are the Singapore Youth Olympics and Singapore Idol, where the participants and viewers are within our target segment.

    

Clothing apparel can be sponsored to the contestants of Singapore Idol and this can help garner greater acceptance of the brand, potentially increase its popularity and alleviate its identity of being trendy and for young adults. For youth sporting events such Youth Olympics and ASEAN games, Hang Ten could sponsor and design uniforms for the volunteers. The Hang Ten brand will be displayed strategically during such sponsorship events. This drives brand recognition and increases exposure in the right environment, thus playing a critical role in Hang Ten's communication mix.


Social Media

Twitter allows users to post a short status update of less than 140 words. It also allows for interactions and sharing of tweets between users. With a Twitter account, Hang Ten would be able to interact and update its supporters directly. The short status updates mean that followers are more likely to read them.

The following are examples of how Hang Ten can utilize Twitter to drive depth of promotions awareness, as well as reviews of their products and marketing events.

With over 800 million active Facebook users, Hang Ten will be able to gather its fans and form a community base of “fans”. As Facebook profiles are more detailed than Twitter, they will be able to provide more information about products, videos, photos and discussion boards where fans can interact with one another.


A good example of a Facebook fan page would be that of our competitor Giordano. In their fan page, Giordano includes their company vision and contact information. They also include photos of their products and events.

We recommend Hang Ten to create their own Facebook page and use it as a platform to educate, engage and retain consumers. Hang Ten could also organize competitions and invite fans to upload photos of them wearing Hang Ten apparel in creative manners, and award a prize to the most creative picture. Through Facebook's sharing feature, this will generate excitement and buzz for the brand.

Hang Ten will be able to engage influential bloggers to write product reviews for Hang Ten’s new seasonal launches. This is very commonly done in Singapore, as popular bloggers such as Xiaxue and Lady Iron Chef do advertorials for cosmetics brands and restaurants. As these blogs get over 30,000 unique readers per day, it will reach a large audience who trust these opinion leaders.

Group Photo at Hang Ten launch event in Manila, Philippines

An example of Hang Ten engaging bloggers in writing product and event reviews would be the Filipino blogger Aisa Paxie. It is a trend and lifestyle blog where she writes about the stores and product launches. In this particular entry, she blogs about attending the Hang Ten store launch in Manila.



As a complementary feature to the previous three social media platforms, we propose that Hang Ten create a smartphone application for users to be kept up to date about the brand’s promotions and special launches. They could also include special promotions for users of their apps in order to drive higher usage and store visits.


An example would be creating a special promotion solely for the smartphone users, to give them a discount when they install the application. As Hang Ten’s target customers are mostly youth who are up to date with trends, marketing through mobile apps would be another avenue to reach out to them.


In summary, social media marketing is relatively inexpensive and it places Hang Ten in direct contact with consumers, allowing them to gain a better understanding of them. As people lean towards multi-platforms, using social media allows us to reach a larger audience and help close the gap between brand image and brand identity.


Endorsement


Similar to Hang Ten’s Korean counterparts, celebrities and youth idols should be engaged to participate in Hang Ten events and featured in media collaterals. This communication speaks directly to the target market comprising of youths and helps them identify with the brand more.


We recommend local celebrity, host and actress, Michelle Chong. Michelle is a well-known actress in her early 30’s who rose to fame in 2007 after her lead role in comedy satire The Noose. The show is rated amongst the most viewed TV shows, attracting not just the older folk who watch TV but young Singaporeans that view the viral videos online.

With Michelle Chong’s high visibility and popularity amongst the target group, Hang Ten would certainly benefit from an association with her. Her reputation as a humorous, trendy actress makes her likeable, making her an ideal Hang Ten brand ambassador.


Hang Ten Singapore could also collaborate to bring in current celebrities who endorse Hang Ten overseas, such as Won Bin and Kim Hyun Joong in Korea. They are very popular young actors that are well loved by Singaporean youths and have an extremely high visibility and favorability.

Evaluation and Conclusion

The challenges faced by Hang Ten arose from a failure to communicate its points of parity (in terms of product design and quality) and points of difference, thus creating a misrepresentation in customer’s mindset that led to mediocre market performance.

To address the problem, we believe that by having a more integrated and targeted marketing activity, Hang Ten can enhance its brand image, equity and economic value. 

These include:

• Clearer message and advertisement
• Celebrity endorsement in collaterals to increase perceived quality and prestige
• Employ more visual and interactive avenues : radio and print media
• Public sponsorship of events or activities relevant to the young target market and in line with Hang Ten’s value offering.
• New addition to the integrated communication mix: Twitter, Facebook, YouTube, and mobile phone applications.
• Employ bright and fresher color and revamp their website.
• Provide product catalogue on the website and/or send it to the members by email or mail.
• Revamp its store layout and product presentation. 

These are chosen based on the relevance of the proposed marketing avenues to the young market, as well as to increase clarity and consistency in marketing collaterals.

Stay tuned to the next entry as we analyze the brand valuation of Hang Ten!

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.