Hugo Boss

Chapter 9- Developing New Products and Services

I decided to write about this chapter because I think that Hugo Boss represent different approach when it comes to product development process.

Hugo Boss is a part of clothing industry, and because of that their obligation is creating a cloth that people are going to buy not because they have to, but because they want to be fashionable. Every few months Hugo Boss have to change their products because every season something else is “in”, and they can survive on the market only by creating or inventing different colors, materials and designs of cloth, that people are going to buy if they want to be fashionable. I think that this is very hard job because they really can’t test the market and ask consumer for the opinion. Internal development (creative team) of Hugo Boss is very important for them because they are having huge number of competitors, and they have to prepare cloth for next season in silence, so that nobody can’t copy from them cloths before is exposed on fashion week.

Hugo Boss divided their product line in groups that are representing changes in trend. For example, Boss line is having from season to season similar products because for years business people are wearing suits and ties, but they are doing additions to that line by providing people 100% silk ties, or shorter skirts, or women are nowadays wearing more manly suits. Boss Green provides sport cloth and they, for example, improved their sweatshirts giving the opportunity to take of the hood if you want to.

Few years ago Hugo Boss expands their production providing jewelry with their brand name on, and they watched how profit from jewelry increases every year. Because of that, and because customer are buying more and more crystal jewelry, they made a deal with Swarovski, who is going to make exclusive collection for their Boss line next year.

In the end I would like to say that clothing industry is very hard. You have to take care about every segment of production, and you have to be good in projecting future trends. Hugo Boss have a hard job because every collection must be made almost year before it’s introduced to customer, and have to be different because trends are changing. If they want to be on top of the industry their job is to be creator of future fashion.

References:

Unknown Author (2007), trends-UK/Hugo Boss, Retrieved December 17, 2007 from: http://www.trends-uk.com/catalog/product_info.php?products_id=725&osCsid

=973fc9c140e3df820a2460e0e59220c1

Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective3/E. New York:The McGraw-Hill Companies, Inc.

Author unknown (2007), Bnet research center/hugo Boss/ HUGO BOSS: License Agreement, Retrieved December 17, 2007 from: http://findarticles.com/p/articles/mi_pwwi/is_200703/ai_n18736700

Chapter 12- Price Determination and Pricing Strategies

In the following paragraphs, I would like to explain little bit about pricing strategies in Hugo Boss. Also because Hugo Boss is giving franchise to lots of retailers, I will try to compare some prices in few stores and over the internet.

First off all, I would like to point out that Hugo Boss is producing his cloths in Tunisia, India, China, Turkey, Italy and Germany. In the first three countries, working conditions are poor, and work force is cheaper than in the other countries. So I think that their prices of cloths worth much more less than they really are. Also, I noticed that in Croatian Hugo Boss, prices are slowly increased every few months, but because their prices are inelastic, that means they can afford that to themselves and not lose clients.

Because they have more than 210 franchise worldwide, and more than 5 700 POS stores there are some changes in prices of the cloths. I have been in Shopping Center Emporium Ljubljana, Slovenia and the price of one pair of shoe was the same as the price in Hugo Boss in Vlaška in Zagreb (the only difference was exchange rate).

Hugo Boss is very famous, so they have very high prices (also because of the quality). Hugo Boss is doing premium pricing when they are selling dresses. They use 100% silk, and other expensive material, so they have higher prices for that cloth. I noticed that they don’t use psychological pricing because people that shop there don’t care that much about prices.

In the end I must say something about our Hugo Boss and Renimo d.o.o. company that is selling Hugo Boss cloth. Almost year ago I got card in Hugo Boss for collecting a points and I thought that they will send me lots of catalogs, but instead of that, they contact me every time new cloths comes and they are sending me birthday and Christmas card. And the best part of that card is that I could get a present if I collect 100 points (every point worth 50 kunas) I will get present, and also they gave you discounts before discount for other starts.

References:

Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective3/E. New York:The McGraw-Hill Companies, Inc.

Unknown author (2007), Hugo Boss AG/Company/Corporate Profile, Retrieved: December 18, 2007 from: http://group.hugoboss.com/en/unternehmensprofil.htm

Unknown author (2007), Renimo d.o.o. Retrieved December 18, 2007 from:

http://www.hugoboss.hr/modules.php?r=hugo_boss

Chapter 13- Marketing Channels

Now, I would like to say something about distribution of fabric, cloths, accessories throw Hugo Boss. Hugo Boss is producing and selling products all over the world, so very important thing for them is having a good relationship with their distributors. Also I would like to mention where you can find Hugo Boss cloths.

Hugo Boss chooses to distribute their products to customer exclusively throw Hugo Boss stores, and selectively throw some special cloths store. That allowed them to expand their selling by targeting exclusive customers in their stores, and giving the opportunity to other customers to buy cloth in a mall, or somewhere like that. Hugo Boss is providing a huge number of stores (more than 5900) for their customers. Hugo Boss is also using single channel strategy because you can find their cloths only in expensive clothing stores, or in Hugo Boss store.

When we talk about distributors and retailers, Hugo Boss made special network infrastructure that allows tracking down inventory of all stores worldwide. Also they have sourcing offices and distribution hubs all over the world, so that they could produce and distribute cloths as soon as possible. That shows that they are also a part of backward integration because they own factories around the world. Also they are buying from China distributor fabric because is cheaper than producing themselves, but because they have language problems with them, they are now in negotiating stage with India.

References:

Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective3/E. New York:The McGraw-Hill Companies, Inc.

Unknown author (2007), Hugo Boss AG/Company/Corporate Profile, Retrieved: December 18, 2007 from: http://group.hugoboss.com/en/unternehmensprofil.htm

Unknown author (2007), Money control/CBNC TV 18 News/ Hugo Boss looks at India for sourcing textiles. Retrieved December 18, 2007 from:

http://www.moneycontrol.com/india/news/business/hugo-boss-looks-at-india-for-sourcing-textiles-/09/08/300903

Chapter 14-Retailing

Retailing is the most important way that brings Hug Boss AG huge profit. Because of that Hugo Boss have more than 5900 stores over the world and they are growing more and more every year.

Hugo Boss is moving across the world by giving the franchise to foreign companies, so they could sell cloths to their country. Also they are selling cloth in some retail chains (but they must be some retail with expensive cloth and on a good address, or in some mall).

Hugo Boss is paying great attention to atmospheric in their store. I visited store in Spain and Croatia, and I noticed that stores were white; every store has some space that divides Boss, Green and Hugo collection, so it’s very clearly. Also salespeople are very nice and polite, and they will help you if they can. Also they are willing to change the cloths if it’s their foul and you have the ability to reserve the cloth for a day or two if you don’t have money right now. And I mentioned that in Croatia salespeople treat you in a same way even if you don’t buy anything, or if you buy cloth in a huge amount. Also, Hugo Boss in Croatia is providing new service “Mobilni Boutique”. If you don’t have time you can call the store and ask them to bring you cloth at home, so that you can try and buy cloth in peace. Also this service is available 24 hours a day, and prices are same as in the store.

Hugo Boss is trying very hard to leave a good impression after visiting their store, and I like when all stores are in the same way so that I can recognize the brand even if I don’t see the sign above.

Unknown author (2007),Hugo Boss in New York, Retrieved December 19, 2007

From:www.adsce.com/Portfolio/Retail/HugoBoss.htm

Unknown author (2007) Hugo Boss store in Stockhlom, Retrieved December 19, 2007 from: www.daviddesign.se/news-from-david/

References:

Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective3/E. New York:The McGraw-Hill Companies, Inc.

Unknown author (2007), Renimo d.o.o./Novosti Retrieved December 18, 2007 from: http://www.hugoboss.hr/modules.php?r=hugo_boss

Unknown author (2007), Hugo Boss/ Company/ Corporate Profile. Retrieved December 18, 2007 from: http://group.hugoboss.com/en/unternehmensprofil.htm

Chapter 17- Advertising and Public Relations

Advertising is one of the most important tools for informing, remanding, and persuading people to come to Hugo Boss store. Besides advertising, there are tools that help Hugo Boss to stay on good reputation, such as public relation and publicity.

Hugo Boss, like all other clothing companies spends millions and millions Euros for advertising their products. They are advertising themselves throw all kinds of media, from television to newspaper and internet. For example, half page in American Cosmopolitan cost 105 700$ (black and white) to 132 200$(4 colors), and that is just one page in one monthly paper. I must mention that Hugo Boss in Croatia only advertise fragrances on television, and in newspapers advertises cloths and fragrances also.

Hugo Boss has their own web site on the internet, so anyone can see their latest fashion shows and cloths. The pages are also divided on cloth and fragrances, which I liked very much. Also, ads are divided according to line of product. For example, Boss Green advertises with their fragrance sport oriented man, while on Boss fragrance is representing nice and gentle female (two pictures explains better what I wanted to say).

In the end I would like to say something about PR department in Hugo Boss. Hugo Boss puts every press release on their web page; they are putting almost every month financial reports, so that their shareholders can be in touch with numbers. I think that they care a lot for all stakeholders.

Unknown author (2007) Boss ad, Retrieved December 20, 2007 from: www.bluebellgroup.com/.../hugo_boss.html

Unknown author (2007) Boss Green ad, Retrieved December 20, 2007 from: www.fantom-xp.com/es_21__BOSS_-_Hugo_Boss.html

References:

Unknown author (2007), Cosmopolitan/Rates/Cosmopoiltan Media Kit. Retrieved December 20, 2007 from: http://www.cosmomediakit.com/r5/showkiosk.asp?listing_id=474162&category_code=rate&category_id=27809

Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective3/E. New York:The McGraw-Hill Companies, Inc.

Unknown author (2007), Hugo Boss/English. Retrieved December 20, 2007 from : http://www.hugoboss.com/index.html

Chapter 18- Consumer and Trade Sales Promotion

Hugo Boss must have specialized and sophisticated sales promotion because their customers are wealthy people, who care a lot about how salespeople behave to them. Hugo Boss recognized that, and in the next paragraph I will try to explain in which way Hugo Boss perform customer’s wishes.

Hugo Boss is not using coupons, rebates or something like that in their stores. As I mentioned in one of the chapters Hugo Boss in Croatia (Zagreb and Split) is giving something like VIP cards, but you are collecting points and after a 100 collected points, you get some price. For me, for example that is some kind of motivation, because I will rather buy something in Hugo Boss in Vlaška street, or in City Center one (Ljubljanska Avenue). Also new service that is provided in Croatian Hugo Boss is “Mobilni Bouique”. It’s a new service that allows customers to shop from home for the same prices as she is buying in store (advantage is that salespeople can be available 24hours a day). When we talk about fragrances, during some holidays or promotions of new fragrances, Hugo Boss usually give some make-up bag if you buy their product, I mean fragrances shop Iris is making that kind of promotion.

One of the important thing for every clothing companies are trade shows. Every company would like to have their clothing collection on some Fashion week in Milan, Rome, New York, or Paris. Those Fashion weeks are reserved for the best designers because all famous and important people around the world travel just to see new collection and to order cloth for themselves. Hugo Boss is also representing their cloth for years on Fashion weeks and that is important for them because there is no better publicity that read in the newspaper how some celebrity is wearing Hugo Boss suit.

References:

Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective3/E. New York:The McGraw-Hill Companies, Inc.

Unknown author (2007) Fashion Week, Retrieved December 20, 2007 from: http://www.fashionnetwork.tv/

Unknown author (2007) Iris/ Parfummerija. Retrieved December 20, 2007 from: http://www.iris.hr/parfumerija.php

Unknown author (2007), Renimo d.o.o./Novosti Retrieved December 18, 2007 from: http://www.hugoboss.hr/modules.php?r=hugo_boss

Chapter 20- Direct Marketing Communications

When it comes to direct marketing communications Hugo Boss must pay a lot attention to that because if they want to have well (under the good I mean wealthy) customers, they need to have special method to reach them. These following paragraphs I will explain throw Hugo Boss in Croatia because I know only that Direct Marketing Communication.

Renimo d. o. o. is sending postcards, leaflets and flyers to their customers that posses their VIP card. They are also sending a mail in which they inform you that new collection is in the store. Also, Renimo d. o. o. is sending information when discounts start, so that you can come first day and shop while there is more cloths in the store available. I got a birthday card from them, and that is very nice way to show customers that you care for them and that you think about them (they sent me a card that is written by hand, and I think that that is a great plus).

In the end I would like to say something about invasion of privacy in ethical sense. Not sending bunch of catalogues and sales letter, Hugo Boss is taking care for customers privacy, which is great when we consider the fact how many catalogues are in ours mail box.

References:

Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective3/E. New York:The McGraw-Hill Companies, Inc.

Unknown author (2007), Renimo d.o.o./Novosti Retrieved December 18, 2007 from: http://www.hugoboss.hr/modules.php?r=hugo_boss

Marketing diary

Retrieved:October29,2007,from:http://upload.wikimedia.org/wikipedia/de/thumb/7/

73/Hugo-Boss-Logo.svg/800px-Hugo-Boss-Logo.svg.png

Chapter 1- an overview of Contemporary

Marketing

First I would like to use this first chapter to introduce you with fashion house Hugo Boss AG. Hugo Boss AG is founded in 1923 in Mitzingen, Germany, and from than he is the most famous for the high-quality woman’s and mans business suits. But when we see the company from the marketing perspective, Hugo Boss AG is a company that spends millions of euros for advertising their brands and products all over the world.

For the years they are advertising in women and man magazines, on television (only perfumes), or are sponsors for the dynamic sports, and they are sponsors of big fashion events all over the world. That kind of advertising tells us that their target customers are people with high incomes, young and middle age, business and sports people.
Because of their customers and changes on market, Hugo Boss AG divided their cloths into two general brands: Hugo and Boss brands (Boss image is transported by four independent and distinctively positioned lines: Boss Black, Boss Orange, Boss Selection, and Boss Green) so that every brand can concentrate separately to their target market. Every brand is also advertised and selling differently. They are distributing their cloths in their stores, and their stores are opened in the best locations all over the world.

Hugo Boss is a follower of the marketing philosophy because their objective is to satisfy the needs of the costumers, so they are adapting to everyday changes as quickly as possible.

References: Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective 3/E. New York:The McGraw-Hill Companies, Inc.

Author Unknown (2007). Group. Hugo Boss/Company/Brand Review.

Retrieved October 29, 2007. from: http://group.hugoboss.com/en/markenuebersicht.html

Author Unknown (2007). Group. Hugo Boss/ Company/Corporate file.

Retreived, October 29, 2007, from: http://group.hugoboss.com/en/unternehmensprofil.htm

Chapter 2- The Global Marketing

Environment

Throw this chapter I will try to carry out the global marketing environment that can affect marketing activities in Hugo Boss AG. I will focus more on competitive environment because competition is the most important in fashion industry.

Hugo Boss is in fashion industry, and they have lots of brand competitors, such as Armani, Max Mara, etc. Because of great number of competitors, Hugo Boss is designing cloths for the most varied target groups, the most exacting demands and for every occasion, so that they are able to maintain their market leadership even today. They are dictating new trends and adjusting like their competitors to consumers. Because the competition is big, they are not advertising to all market, but they divided Hugo Boss into two brands, that create their target markets, Hugo and Boss, and these brands are keys to their success.

When we speak about the culture and changing roles, Hugo Boss adopted in that changes also. First Boss brand had only classical men’s business wear, but during the time women become to work more, and they adopted by providing the cloths for business women too.

When we talk about the technological environment, Hugo Boss is offering a web page http://www.hugoboss.com/ where all fashion lovers can sit at home and watch the last fashion show on internet. Also they have developed E-business, so from 2001 they are doing business to business over the internet, and that was showed as a success, and even today it is.

References: Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective 3/E. New York:The McGraw-Hill Companies, Inc.

Author Unknown (2007). Group. Hugo Boss/Company/Brand Review.

Retrieved October 29, 2007. from: http://group.hugoboss.com/en/markenuebersicht.html

Author Unknown (2007). Hugo Boss. Retrieved October 29, 2007. from: www.hugoboss.com

Chapter 3- Marketing's Strategic Role in the

organization

In the following sentences I will explain terms like vision,corporate objectives,
corporate strategy decisions, market scope, and an international strategic orientation in the case of Hugo Boss AG.
Hugo Boss vision is to be the global market leader in superior fashion। To accomplish that vision, they are planing to open more stores in the world (now they have 1,000 stores operating worldwide and more than 5,700 other partners POS venues ). Also they have financial objectives sales growth, profit growth and they made it happened by offering suppliers on-line
orders, giving license (to Protect & Gamble for fragrances), etc.
Hugo Boss AG is following few strategies, when it comes to corporate growth। They are doing market expansion strategy by selling the same products to new market (Croatia,
Yugoslavia, Japan,...), also with Protect and Gamble (who creates their fragrances) are doing
diversification strategy, and of course every season they are doing product expansion strategy,
that is marketing new cloths to the same market.
When we talk about market scope, they have broad market scope। They are selling cloths (from business suits to sportswear,), accessories(shoes, bags,).
At the end I would like to say something about international strategic orientation of Hugo Boss. Hugo Boss is doing standardized marketing strategy because they develop and implements the same product, price, distribution and promotion. I have been to Hugo Boss in Spain,and the store and ads were the same like here in Croatia. Also the prices were pretty much the same like here. Because their target customers are not so big like for example Nike's, they don't have to advertise different in some countries, or regions, and I think that customized advertising will not bring them bigger profits.

References: Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective 3/E. New York:The McGraw-Hill Companies, Inc.

Author Unknown (2007). Group. Hugo Boss/ Company/Corporate file.

Retrieved,October 29, 2007, from: http://group.hugoboss.com/en/unternehmensprofil.htm

Chapter 5- Business-to- Business Markets and Buying Behavior

Throw this chapter I will try to explain what is business-to-business and connection

between that term and Hugo Boss.

A primary elements of business-to-business buying is selection of suppliers, sources, or

vendors. Hugo Boss AG in their headquarters is designing the collections and developing of

groundbreaking technologies. But they are buying fabrics from China and India, and even

produce cloths (for example in Tunisia or China) by other suppliers, that means that they are

outsourcing. But they also supply more than 6,000 stores all over the world. Because they are

such a big company, they have globally networked infrastructure that allows them to

communicate with retailers and factories immediately. Also what is most important with that

kind of infrastructure, Hugo Boss is capable to deliver cloths within 24 hours in Germany and 48

hours within Europe.

Also very important thing in business-to-business is trust. Also the trust is very

important for Hugo Boss because if their suppliers delay or produce fabric that is not high

quality they could have problems with finishing product and with customers also, who are at the

end the most important. So, before they even hire some new suppliers, they first negotiate with

them.


References: Author Unknown. The Hindu business line/Industry and economy/Textiles.

Retrieved:October29,2007.from:http://www.thehindubusinessline.com/2007/09/03/stories

/2007090351720300.htm

Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective 3/E.

New York:The McGraw-Hill Companies, Inc.

Chapter 7- Market Segmentation and Targeting

Now, I would like to say something about market segmentation of Hugo Boss, target markets, also I would say something about their segmentation strategy .

Hugo Boss years ago defined their market segmentation. Business man and women, with high income, who both likes high-quality cloths (that is produced with best material), likes to be trendy and fashionable, and likes to spend a lot of money on their outfit are Hugo Boss AG market segmentation.

After market segmentation, we have to do targeting. With their standardized champagnes for every country, and sophisticated look of the store and polite staff in stores, they are trying to satisfy their consumer and to reach the new one. Their champagnes are divided according to their brands. As I mentioned they have two main brands Hugo and Boss. On this picture we can see how they are explaining each brand, and we can see what are they target markets.

As we can see on this picture there is a

brand overview, were every line target

various needs, and we could say various

customer. In addition to this picture, the

following ones will explain every line of

the brand.












Retrieved October 29,2007 from: trendyspace.blogspot.com/

2006/09/antara-polan... Hugo Boss

Orange

Retrieved 29, October 2007,from: www.medien.hamburg.de/bildgalerie-bildansicht... Boss

Retrieved October 29,2007 from:www.adensya.ru/collections/archive/31/0/0?PHP... Hugo Boss Green

Because of their brands and lines within brand they are using differential segmentation strategy.

That means that they use concentrated strategy because their target customers with high

income and they are advertising throw some innovative ways.

References:

References: Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective 3/E.

New York:The McGraw-Hill Companies, Inc.

Author Unknown (2007). Group.Hugo Boss/Company/Brand Overview.

Retrieved, October 29, 2007, from: http://group.hugoboss.com/en/markenuebersicht.html

Chapter 8- product and Services Concept

In the next sentences I will try to introduce you with Hugo Boss AG products, or to be precise with a benefit that gives you their products. Also I will explain components of their product.

Hugo Boss AG is with its high quality fabrics providing a customer satisfaction, and the customer enjoys wearing their cloths. They recognize the most important thing in marketing, and those is, providing benefits to customer with their products and not just making products and then seek for the market. Because of that Hugo Boss, throw his brands separated different needs: needs for sport cloths, for business suits, and skirts, etc.

Quality is very important component for Hugo Boss. Because their cloths are expensive, they can’t afford to have unsatisfied customers, because they can go to competitors. Because of that the employees in the stores are very educated, and if anything happened to the cloths they are willing to exchange it.

Design in cloths vary from season to season, but is still very important components. I tried few weeks ago one skirt at Hugo Boss that looked nice on a hanger, but when I tried to put it on, it was really difficult, so I gave up. Sometimes they exaggerate in making cloths unusual.

Branding is something that is very familiar to Hugo Boss. Their names of the brands are Hugo and Boss (Boss Black, Orange, Green, and Selection). They are easy to pronounce and remember. Also every brand and line within a brand is easy to recognize because they are colored differently (that depends on the brand). They achieved brand awareness because Hugo Boss is recognized all over the world for their suits and cloths. Also everyone knows that when they want to purchase suit, first they will go to Hugo Boss or Armani. They have good brand image and also good brand loyalty. They usually have their regular customers who came in their store because they know what to expect from Hugo Boss cloths. Because of their customers and high quality cloths, Hugo Boss developed brand equity, that is, Hugo Boss became well-known a brand in fashion industry.

Hugo Boss packages their cloths to some white paper, and then put in the black bags, with barely visible Hugo Boss sign. But because of the same packaging all over the world, their bags become well-recognized.

References: Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective3/E. New York:The McGraw-Hill Companies, Inc.

Unknown Author, (2007). Hugo Boss/The Hugo Boss group. RetrievedSeptember27,2006from:http://production/.investis.com/boss_en/thegroup/

Chapter 10- Product and services Strategies

Throw my other chapter I explained you the vision, objectives, strategies they use for segmentation the market, environmental influences that affect their company, but I didn’t mention their products that much. So, in this last chapter, I will try o explain product life cycle in Hugo Boss company.

The product mix of a Hugo Boss is its very big and has several product lines. They are producing suits, jeans, shirts, snickers, pullovers, dresses, fragrance, and in the past few years jewelry.

These entire products have almost the same life cycles (introduction, growth, maturity, and decline). I will explain throw example on Hugo Boss in Vlaška in Zagreb.

In July, I received the mail about from Renimo d.o.o. that import Hugo Boss cloths, that in few days new cloths collection for winter is ob the way to the store. Throw this mail they inform me that the new product life cycle began. After that, they began to advertise new ads for new collection, to introduce potential customer into the new collection. Now, they are having growth stage because the winter is standing in front of the door, and the consumers are buying winter cloths more. I would say somewhere around the Christmas, Hugo Boss will enter into the maturity stage. In the maturity stage, they usually put some little part of the new coming spring collection. In the end comes the decline stage. In the decline stage they usually have sales. They want to sell all their cloths from winter collection because the spring collection entered in the store (the same way as winter did into). When spring collection enters entire, somewhere round the February, product life cycle for winter cloth is over.

The specific thing of Hugo Boss AG and other fashion brands is that they are having new product life cycle every four months.

In the end, I would like to say something about new line products in Hugo Boss AG. Like all other companies, Hugo Boss also adapting to the changes, and produced some new product. In the past decades, Hugo Boss AG introduced to the customer Hugo fragrances, and entered into the risky market. But, their fragrances made great success, and only few years ago, they entered a new market. They start to make jewelry.

Every company has to adapt to the changes in the market, especially company like Hugo Boss, that have very good image. By filling the new product lines into their market mix, they can enter some new markets, and make the life cycle of particular product longer than few months (fragrances are good example).

References: Bearden, Ingram, LaForge, (2001). Marketing, Principles and Perspective3/E. New York:The McGraw-Hill Companies, Inc.

Author Unknown (2007). Group. Hugo Boss/ Company/ CorporateProfile.Retrieved:October29,2007from:http://group.hugoboss.com/en/unternehmens profile.htm