Summary
Hanes Hosiery achieved explosive growth in the 1970's based on changing fashions and the entry of women into the workforce.  It needed a way to reach women in their early 20's who loved the brand but could not reconcile it's premium pricepont.  Hanes Too was launched in 1981 and continues to deliver strong sales and profits.  In 1982, the NC Chapter of the American Marketing Association named Ed Tashjian as marketer of the year for his segmentation strategy and execution.

Problem / Opportunity
The 1970's were an unusually strong period for hosiery.  Short skirts were in fashion and women were entering the workforce like never before.  With the category growing so quickly, there was a dire need to segment the market, define new niches, target and position individual brands.  Hanes Hosiery was the strongest brand in the category for the Department / Specialty class of trade.  How could it build upon that brand awareness, preference to target new prospects without cannibalizing the parent brand?

Barriers to Overcome
  • Build on the brand without cannibalizing it.  
  • Develop a subordinate brand with fewer features at a lower price.  Make sure the premium brand maintained demonstrable differences that reconciled the pricepoint.
  • Gain shelf space in a crowded category
  • Fierce competition
  • The emergence of new channels of distribution were sending women to grocery and drug stores

Solution
  • Line extend the Hanes Brand with the introduction of Hanes Too.
  • Utilize strong gross margins to build awareness with powerful advertising and promotion campaigns.  A $5MM national advertising campaign helped to gain awareness and stimulate trial.
  • Win floor placements by visiting dozens of stores and convincing hosiery buyers that it would generate incremental business.

Results
  • Within a year of launch, Hanes Too had ubiquitous distribution in its channel and generated $30MM in annual revenues.
  • It is still a strong brand nearly 30 years later.
  • In 1982, the NC Chapter of the American Marketing Association named Ed Tashjian as marketer of the year for his segmentation strategy and execution.

Hanes Too Case Study
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