Abstract

This case explores the situation of a British high street clothing retailer which attempted an entrance into the US market and failed. The company, Jack Wills, was created in 1999 and experienced rapid domestic U.K. growth during the early years of the brand's creation. Its target market of 18-24-year-olds responded well initially and embraced the brand. As sales progressed, the company began to expand internationally, and one of its chosen markets was the United States. Hong Kong, Singapore, Kuwait and Saudi Arabia also had physical store presences. Unfortunately, the situation in the U.S. did not develop quite as planned, and after several years of effort, the decision was made to exit the US market due to a lack of sales and market acceptance. The case focuses upon a decision which needs to be made by new management with respect to the U.S. market in terms of whether to keep the company’s activities shuttered, or to alternatively to create a new strategy which would allow the company to become profitable within that market.

Objective

1. Internationalization strategy: the case can be used as a platform for discussion of internationalization strategy. The failed entry, and the reasons thereof provide a foundation for discussion of the various modes of internationalization and the need to have a clear strategy based upon local market realities. 2. Marketing strategy; domestic vs. foreign positioning strategy. One of the most obvious uses of the case is in a class a marketing strategy. Whether discussing marketing strategies based upon a “C based approach” or a “4P-based” approach, the case provides ample data for rich discussion. 3. Product Strategy: The case can be used as a platform for discussion of product strategy. The company’s management likes to compare itself to Ralph Lauren yet a closer examination of the products which they are brought to market suggests that there is a significant disconnect between what they think they are and what they actually are in fact. While it is difficult for students to actually compare the quality of the brands products, it is nevertheless fairly clear from the website that the level of quality to be expected from these two brands is significantly different. One can also question Jack wills continued use of a hoodie as a flagship product when the product itself has been commoditized. 4. Retail Strategy: The case lends itself to a discussion on retail strategy, particularly upon retail strategy in the first quarter of the 21st century. Due to the rapid growth of online commerce, numerous retailers have been forced to cut back on space, outlets and geographies. In numerous cases, they had been forced into bankruptcy such as Neiman Marcus, Barney’s and numerous others. The case generally leads into a discussion over the relative benefits of a clicks versus mortar strategy, and the relative benefits and disadvantages of both. 5. Corporate Strategy: While not the primary focus of this case, it can nonetheless be used for discussions of corporate strategy and strategic brand management. Clearly the company strategy has neither evolved with their customers, nor with the times, and this is clearly reflected in declining customers, sales and brand equity.

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Type
Case Study