Hudson Corporation

Case Study 1 p.12-13

Pivovarskaya Anastasia 33 group

After I read the text, I realized that the Hudson Corporation, which is a manufacturer of luxury luggage, was facing increasing competition from cheaper imports.  Accordingly, the main problem of the company was falling sales.  To increase sales, the company wants to enter the European market.  In my opinion, entering the European market is a very important step, and before doing so, they need to thoroughly research the needs of European buyers, since they may differ significantly from American ones.

I think that first the company should normalize its sales in America, and then look for other markets to promote its products.  Otherwise, the same thing could happen to Hudson Corporation, because there is also a lot of competition in the European market. There is a chance that competitors will have an advantage if they have been working in the market for a long time.

There are several options for a brand to return sales and enter the European market.

  The first option is to reduce the price of their goods.  One of the main disadvantages identified during the market research is the high price of the products, so it is important to consider reducing the cost. This can be done through marketing repositioning of the brand.  To reduce production costs, a company may consider moving production to countries with low labor costs, such as India or China.  The brand can also use cheaper, but still high-quality materials.  However, the brand should approach this issue carefully so as not to spoil the reputation of their products.

The second option is to hire a top designer.  Many buyers of the brand think that it is old-fashioned, and one of the ideas in the text was to hire a top designer.  This will allow the brand to update its image and attract a younger, fashion-conscious audience. Collaboration with the best designer will open new horizons for the brand in creating stylish, modern suitcases and bags that will meet the requirements of both business people traveling around Europe and fashionable, successful buyers.

The third option is to make their products more exclusive.  I think that if a company wants to promote their brand as a high-end product, then they should make it exclusive.  They can keep the "Made in America" ​​label and sell products in a higher price range.  At the same time, the company should use product placement in movies and television to keep Hudson's products in front of consumers. It is also necessary to hire famous and influential men and women to advertise the products.  Next, they need to find the right brand ambassadors.  In this way, the brand will be able to attract an audience and strengthen customer loyalty.  For example, the Nike brand's first famous ambassador was American basketball player Michael Jordan, who wore their sneakers to every game and starred in advertising.  In my opinion, the Hudson company can do the same, for example, choose a famous person who travels a lot and offer cooperation in advertising their brand.