Cindy Fu

Gildan Activewear Inc. invests in brand recognition

Gildan Activewear Inc., has a low-cost strategy and is the manufacturer of blank T-shirts that are imprinted with logos, slogans and designs.  They are nearing its 30^th anniversary of incorporation and have a global workforce of almost 30,000 employees.

They are an established company but what more does the company want? What are its weaknesses? It seems as though the company is stagnant and the only way for growth, is to establish brand name recognition. Branding is what they have lacked all these years; they have failed to establish a brand in the minds of the consumers.

The importance of creating brand awareness has caused Gildan Activewear Inc. to spend $30 million for a huge ad push its name into their customer’s heads. Customers recognize and remember a brand not for what it sells but the overall brand built. They created an ad to be shown during Super Bowl XLVII, and are risking it for wider recognition. This marketing strategy goes against its cost leadership strategy.

Running a smaller scale marketing technique in a test market can project profitability. However, Gildan Activewear Inc. took a risk and invested its capital on a huge marketing campaign that may grow its company in the future.

References:

“Porter’s Generic Strategies.” Porter’s Generic Strategies. N.p., n.d. Web. 18 Nov. 2013. <http://www.quickmba.com/strategy/generic.shtml>.

MAROTTE, BERTRAND . “Blank T-shirt maker pins growth hopes on retail brandingAdd to ….” The Globe and Mail. N.p., n.d. Web. 18 Nov. 2013. <http://www.theglobeandmail.com/report-on-business/economy/manufacturing/blank-t-shirt-maker-pins-growth-hopes-on-retail-branding/article15479128/>.

“Can Gildan Sew Up Some Brand Recognition?.” 2014 Super Bowl Commercials Watch Laugh Share. N.p., n.d. Web. 18 Nov. 2013. <http://www.superbowl-commercials.org/18111.html>.