#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.