Research one multinational corporation like Procter and Gamble, Unilever, IBM, Microsoft, Honda and etc. Identify and describe how their subsidiaries are managed and how technology has assisted them in their corporate and/or local operations. Further, identify one Philippine company that has gone worldwide (eg. Jollibee and BENCH) and describe their strategies. Evaluate the strategies of foreign companies with that of Philippine corporations.At Phillips-Van Heusen we are guided by the principle that enduring corporate success is not only measured in financial terms. We recognize that how we conduct our business and how we participate in the communities in which we operate are equally important to all that we accomplish financially.
VANHUESEN - Our multiple brand, multiple channel, multiple price point strategy is designed to extend the reach of PVH, by taking advantage of appropriate opportunities to grow market share, while providing stability should market trends shift. Underlying this strategy is a dynamic infrastructure that supports the broad base of our operating businesses in an efficient manner.
When we acquired the Superba neckwear business in 2007 and integrated it with the Dress Shirt Group, obvious synergies were created across all common brands and distribution channels. The combination created the world's largest dress furnishings business and both the Dress Shirt Group and Neckwear Group benefit from their combined presence in the marketplace. The Timberland sportswear license is leveraging the Sportswear Group's strength in product development, design, sourcing, wholesale distribution, and retail presentation. It also adds to our brand portfolio an authentic outdoor lifestyle brand with strong credibility in the "green" product category, allowing us to penetrate that part of the marketplace with a well-known brand with unique positioning. Our commitment to leveraging internal resources to improve the position of our brands was underscored when we brought the IZOD women's sportswear business in-house. We re-launched this business utilizing newly formed and dedicated in-house design, merchandising, and sales teams that are leveraging our knowledge of the IZOD brand to broaden the brand's reach as we seek to maximize its potential. At the same time, this initiative creates a significant new in-house capability in women's wholesale apparel that positions us to pursue opportunities with other brands in the future. Our experience in developing direct-to-consumer retail formats proved essential when we launched full-price Calvin Klein specialty retail stores at the end of 2007. We entered this business to showcase and promote the great breadth of the Calvin Klein better product lines and the Calvin Klein lifestyle.
Just as we leverage operating efficiencies, we also leverage our marketing capabilities and brand knowledge to strengthen the image of our brands and their connections to the consumer. The critical process of brand management, including communications, research, planning, and marketing, benefits from the cross-fertilization of brand knowledge across our business groups. In 2007, we leveraged the brand knowledge of our business groups with multiple levels of consumer research with the objective of enhancing the brand-to-consumer relationship. Our increasing desire to connect to the consumer directly could be described as an "outside in" approach, beginning with our observations of and experiences with consumers and supported by independent research commissioned by us to identify what consumers and the marketplace want and need.
Perhaps the greatest example of our efforts to connect with our consumers is found within the comprehensive, yet tailored, nature of our marketing. Our marketing campaigns are multi-dimensional, spanning media including print, television, outdoor, in-store, cinema, in-flight, and online advertising, public relations, sponsorships, and promotions. Our efforts also involve leveraging our considerable expertise in product development, packaging, presentation, and channel segmentation to enhance our brands and consumer appeal. Our marketing seeks to match consumers' affinity for each individual brand's attributes.
Our 2007 financial performance reflects the benefits of leveraging our operating structures by business group and our brand knowledge and marketing efforts across business groups. Going forward, we will continue to be focused on increasing the degree to which our brands are aligned with the market, reflecting consumers' demands and an ever-changing distribution landscape. Our strategy of diversification, leverage, and brand focus should continue to provide us with a strong and balanced platform upon which our continued success can be built.
