CALVIN KLEIN,INC:

Calvin Klein, Inc.is one of theleading fashiondesign andmarketing studiosin the world. Itdesigns and marketswomen’s and men’sdesigner collectionapparel and a rangeof other productsthat aremanufactured andmarketed through anextensive networkof licensing agreements and other arrangements worldwide.Brands/lifestyles include Calvin Klein Collection, ck Calvin Klein,Calvin Klein, Calvin Klein Jeans and Calvin Klein Underwear.

Following his graduation from the High School of Art and Design,Calvin Klein studied apparel design at Manhattan’s Fashion Instituteof Technology. Inspired by the fresh and unpretentious style of NewYork’s urban youth, Klein was ready to launch his own clothing companyin 1968. With financial help from a childhood friend Klein hired aseamstress to make a handful of his elegant woman’s coats and dresses.This merchandise was seen in a dingy showroom by a merchandise managerfrom Bonwit Teller. The department store purchased $50,000 worth ofapparel and displayed samples in eight windows, kicking of Klein’scareer. By 1970, Calvin Klein obtained a trademark for his infamous“CK” logo. Soon thereafter, Klein received the Coty Award, aprestigious design award, three consecutive years in a row in 1973,1974, and 1975. In addition, he added numerous product lines andcategories and acquired models such as Brooke Shields and MarkWahlberg. These models’ careers took off after their Calvin Kleindebut because the brand has received much recognition over the yearsfor its sleek, classic, and minimal look.

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By 2003 Phillips-Van Heusen purchased the company where CalvinKlein remained active within the company as a head designer. Thecompany continues to offer a variety of products to a wide targetmarket.

The Calvin Klein brand, owned by Phillips-Van Heusen Corporation,covers a wide variety of product classifications. Designer CalvinKlein made his debut at a small New York showroom with coats anddresses for women in 1968. Klein’s first designs represented a citychic style of a young woman living and working in New York. Thesedesigns were noticed in the apparel industry, and a successful brandname was founded in that small showroom. The next product line fromCalvin Klein was women’s sportswear, which attracted the interests ofpopular fashion magazines Bazaar and Vogue. Klein has includedsportswear for women in his seasonal lines since the original line waslaunched. The trademark product of the Calvin Klein brand came out in1970 and has been the most popular product in Klein’s many retaillocations. Klein’s denim jeans are the single product that launchedhis status as a high-end designer in the apparel industry. Within thenext ten years, Calvin Klein had expanded into the menswear andunderwear markets, designing boxers and briefs as well as women’sintimates. His menswear line began with boxers and briefs, andeventually developed into high-end suits, button down dress shirts,accessories, and footwear. By the early 90’s, he had already designeda swimwear line, launched two fragrances for men and women, andexpanded into the accessories, eyewear, and footwear markets. The nextstep for Klein was to manufacture an affordable brand under the nameCK including denim, logo T-shirts, fragrances, and sportswear for menand women at a more affordable price. Calvin Klein later followedRalph Lauren’s example by creating a home furnishings line. His mostrecent item is a makeup line sold exclusively in department stores. Itis evident that Calvin Klein saw that product line extension wasnecessary for company success as well as a means to surpass hiscompetition.

Mission and vision of Calvin Klein

Mission

The Calvin Klein Company’s products get the belief from consumeswidely. It creates products for many kinds of people, class, sexand characteristic.

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“Our motivation serves for the respect and the belief ofconsumers. “

Vision

Becomes one of the firstchoice of consumers Revenues would total$2.47-2.5bn for the year,up 3-4%, with CalvinKlein royalty revenues poised to raise 5-7%.Increase national market share to 45%

About Calvin Klein

Calvin Richard Klein (born November 19, 1942) is an American fashiondesigner of Hungarian origin who launched the company that would laterbecome Calvin Klein Inc., in 1968. In addition to clothing, Klein hasalso given his name to a range of perfumes, watches, and jewelry.

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Awards

In 1974, Klein designed the tight-fitting signature jeans that wouldgo on to gross $200,000 in their first week of sales. In the same year,Klein became the first designer to receive outstanding design in men’sand women’s wear from the CFDA award show.

In 1983 Klein was placed on the International Best Dressed List. Alsoin 1981, 1983, 1993, he received an award from Councils of FashionDesigns of America.

Product Category: Calvin Klein

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The most visible brand names in the Calvin Klein portfolio include:

Calvin Klein Collection (black label, top-end designer line)

ck Calvin Klein (grey label, recently repositioned as bridgecollection line; licensed to Warnaco Group, Inc. through at least2044[10])

Calvin Klein (white label, better sportswear line)

Calvin Klein Sport (sports version of the white label line forMacy's)

Calvin Klein Jeans (denim wear line; licensed to Warnaco Groupthrough at least 2044)

Calvin Klein Home (high end bedding, towel, bath rug andaccessory collections)

The Khaki Collection (youthful medium to high end bedding, towel,bath rug and accessories) discontinued in 2008

Calvin Klein Golf (launched in late 2007)

Calvin Klein Underwear (underwear collections; licensed toWarnaco Group through at least 2044)

CK one Lifestyle brand (fragrance, underwear, jeans -launched2011)[11][12]

Calvin Klein Watches + Jewelry (watches launched in 1997, jewelryin 2004)

Fragrances

Calvin Klein is famous for the label's various lines of perfumes andcolognes. Their perfumes and the corresponding fragrance lines used tobe maintained by Calvin Klein Cosmetics Company (CKCC), a Unilevercompany, until recently when in May 2005 cosmetics giant Coty, Inc. ofNew York bought up the fragrance licensing agreements from Unilever.

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Some of its Products

Obsession Calvin Klein For Women EDP 100ML Man Calvin Klein For Men EDT 100ML Euphoria Men Intense Calvin Klein For Men EDT

100ML Euphoria Men Calvin Klein For Men EDT 100ML Euphoria Eau de Toilette Calvin Klein For Women EDT 100ML Euphoria Calvin Klein For Women EDP 100ML Eternity Summer for Men 2009 Calvin Klein For Men EDP 15ML Eternity Summer For Men 2008 Calvin Klein For Men EDP 15ML Eternity Summer for Men 2005 Calvin Klein For Men EDP 15ML Eternity Summer 2011 Calvin Klein For Women EDP 100ML Eternity Summer 2009 Calvin Klein For Women EDP 15ML Eternity Love Calvin Klein For Women EDP 15ML Eternity Calvin Klein For Men EDT 100ML Contradiction Calvin Klein For Men EDT 100ML CK One Summer 2011 For Women And Men EDT 100ML CK One Summer 2010 Calvin Klein For Women And Men EDT 100ML CK One Summer 2008 For Women And Men EDT 100ML CK One Summer 2006 For Women And Men EDT 100ML CK One Shock For Him Calvin Klein For Men EDT 100ML CK One Shock For Her Calvin Klein For Women EDT 100ML

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CK One Collector Bottle 2008 Calvin Klein For Women And Men EDT 100ML

CK One Calvin Klein For Women And Men EDT 15ML CK One Calvin Klein For Women And Men EDT 100ML

CK IN2U POP for Him Calvin Klein For Men EDT 50ML

Calvin Klein Financial Summary

It is known that Calvin Klein is one of the best known designer namesin the world, offering a modern design aesthetic. The Calvin Kleinbrands — Calvin Klein Collection, ck Calvin Klein and Calvin Klein —provide the company with the opportunity to market products bothdomestically and internationally at higher price points, in higher-enddistribution channels and to different consumer groups than most ofour Heritage Brands business product offerings.

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In order to more efficiently and effectively exploit the developmentopportunities for each brand, a tiered-brand strategy was establishedto provide a focused, consistent approach to global brand growth anddevelopment. Each of the Calvin Klein brands occupies a distinctmarketing identity and position that preserves the brand’s prestigeand image.

Calvin Klein designs all products and/or controls all designoperations and product development and oversees a worldwide marketing,advertising and promotions program for the Calvin Klein brands. Webelieve that maintaining control over design and advertising throughCalvin Klein’s dedicated in-house teams plays a key role in thecontinued strength of the brands. In 2010, over$300 million was spent globally in connectionwith the advertisement, marketing and promotionof the Calvin Klein brands and products sold,and these expenses are principally funded byCalvin Klein’s licensees and other authorizedusers of the Calvin Klein brands.

Worldwide retail sales of products sold underthe Calvin Klein brands were approximately $6.7billion in 2010.

2011 SUMMARY FINANCIALS

REVENUES :

$1.1 BN

OPERATING PROFITS:

$278 MM

OPERATING MARGIN: 26.1%

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Business Overview

Calvin Klein business primarily consists of

(i) Calvin Klein Licensing – a licensing organizationmanaging arrangements with over 40 third parties andour own Calvin Klein Collection men’s and women’swholesale high-end apparel and New York Cityflagship businesses and

(ii) (ii) Calvin Klein Apparel – including Calvin Kleindress furnishings, men’s better sportswearbusinesses and Calvin Klein retail stores.

Calvin Klein Licensing

We have licensing and similar arrangements worldwide for use of theCalvin Klein brands for (i) a broad array of products includingwomen’s sportswear, jeans wear, underwear, fragrances, eyewear, men’stailored clothing, women’s suits and dresses, women’s performance,men’s and women’s golf apparel, hosiery, socks, footwear, swimwear,jewelry, watches, outerwear, handbags, leather goods, home furnishings(including furniture) and accessories and (ii) to operate retailstores outside of North America

Calvin Klein’s largest licensing partners in terms revenue earned byCalvin Klein in 2010 were: (i) The Warnaco Group, Inc., whichaccounted for approximately 42% of such revenue, (ii) G-III Apparel

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Group, Ltd., which accounted for approximately 14%, and (iii) Coty,Inc., which accounted for approximately 12%

We also market the high end Calvin Klein Collection brand of men’s andwomen’s apparel and accessories offerings through our Calvin KleinCollection global flagship store on New York City’s Madison Avenue aswell as through our Calvin Klein Collection wholesale business.

Marketing Management of Calvin Klein

Target Market

Calvin Klein’s target market focuses on the consumer who is “14 to50 years old and desires modern fashion forward products” (WarnacoGroup, Inc.). “The most prominent consumer looks for iconicstyling” but the “sexy aesthetic continues to draw an edgy consumerlooking for the most current fashion trends” (Warnaco Group, Inc.).Calvin Klein has been called “sexy, modern, and minimalistic” aswell as a “staple in the closet of the fashion-conscious consumers”(Jiffy Notes).

Psychographic variables of the Calvin Klein’s target market conveythe values, attitudes, spending patterns, and cultural influencesof the consumer.

The teen consumers of Calvin Klein responded quickly to thescandalous advertisements of the brand whereas for the adult marketthis could sometimes be a turn off. Teens were hungry for attentionand wearing the Calvin Klein apparel would make them feelrebellious, hip, and defiant. Teens’ spending patterns may vary butusually they want to purchase what is in style, and Calvin Kleinjeans are a very fashionable, sexy, and well-known product. TheCalvin Klein brand is “distributed within all tiers of departmentstores including Saks, Bloomingdale’s, Nordstrom, Macy’s, andDillard’s” which increases sales potential for these segments(Warnaco Group, Inc.). These levels of distribution reach alllevels of consumers.

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Calvin Klein’s advertising and marketing are worldwide. Its“advertising spans 21 countries and reaches and estimated 98million people globally” (Warnaco Group, Inc.). The “advertisingcampaign is found in high fashion magazines including Vogue, Elle,Harpers Bazaar, and Glamour” (Warnaco Group, Inc.). These factorsprove the consumer awareness and influence of the Calvin Kleinbrand.

Marketing Program- 4 p’s

The marketing mix includes product, price, promotion, andplacement. Out of these four elements, Calvin Klein emphasizespromotion because it drives consumers.

Product Strategy:

Calvin Klein Inc. covers a variety of product classifications. Thebrand that made its debut in a small New York showroom sellingdresses and coats illustrates a city chic style for young womenliving and working in New York City. Calvin Klein has continued toextend his product lines through the years. The product linesinclude women’s sportswear, denim, menswear, underwear andintimates, men’s accessories and footwear, swimwear, fragrances,eyewear, footwear, and home furnishings. Calvin Klein knewextending his product lines would increase his target market.

Pricing Strategy:

One of the most appealing features of Calvin Klein’s brands is thevarying prices. Klein has manufactured high end lines withexclusive distribution and more affordable lines found in retailoutlets. The most exclusive line with the highest price point isthe professional line. Men’s suits can be found at variousretailers, including Saks Fifth Avenue for up to $2,000. Women’sprofessional wear, however, can be found at the same retailer forunder $200.

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Calvin Klein sells moderate to high priced products. Moderatepriced products can be found in the CK Calvin Klein Collection.High end products can be found in Calvin Klein. Calvin Klein offersnine different brands which also offer different prices based onthe products.

Promotion Strategy:

Promotion is a heavily funded aspect of the brand. Since 1970,Calvin Klein has been known for using sexually evocative marketingtechniques to promote his lines. This began with 15 year old BrookeShields in the promotion of Calvin Klein denim jeans. In thecontroversial advertisement Brooke Shields says, “Nothing comesbetween me and my Calvin’s”. This advertisement launched theproduct and started a major need in the market for Calvin Kleindenim. Following this advertisement, consumers were purchasing over40,000 pairs of Calvin Klein jeans a week.

Calvin Klein’s advertisements became more controversial within thenext 20 years, beginning with Mark Wahlberg in promotions for men’sunderwear and jeans then escalating to Klein’s notorious children’swear advertisements. In July of 2010, Calvin Klein Underwearannounced actress Zoe Saldana to join the Fall 2010 advertisingcampaign. President and CEO of Calvin Klein Inc., Tom Murry,commented on Saldana being featured in the campaign. “We feelstrongly that Zoe’s natural beauty and authenticity in the upcomingCalvin Klein Underwear campaign will resonate with our consumersand enhance the awareness of the brand”.

Distribution Strategy

Furthermore, promotion and the use of promotion build brand equityfor consumers. Calvin Klein retail locations are separated byconsumer group and product category in order to guide the consumerto the optimal shopping experience. Klein has over 700 employeesavailable to assist the customer with what they are looking for(Hoovers Profile). Calvin Klein has stores in 130 territoriesoutside the United States, and there are currently 650 domesticretail locations. The company is headquartered on Madison Avenue inNew York.

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Brand Elements

Calvin Klein’s brand was named “Calvin Klein” after himself. “CK”is the famous symbol of the brand. Although Calvin Klein does nothave a character associated with the brand, models such as MarkWahlberg, Brooke Shields, Kate Moss, and Eva Mendes are oftenassociated with Calvin Klein advertisements. There are severalslogans affiliated with the brand including “Between love andmadness lies obsession,” and for Calvin Klein Jeans, “Nothing comesbetween me and my Calvin’s” (Tagline Guru). Since Calvin Klein isknown for its minimalistic style, the shopping bags for the brandcome in sultry and neutral colors such as blacks, grays, whites,and navies to keep with their style. The brand has utilized theseelements to evoke brand awareness, interest, and loyalty becausethey are well known names, symbols, and categories on a globallevel. Calvin Klein knows how to make a statement, controversial ornot, and this is how he created customer awareness, interest andloyalty to his brand. The following image is the logo for Calvin

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Klein Inc

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Brand Mantra

Brand mantra is a brief description, five to sevenwords, that include the company’s intended perceptionof the brand by the consumer. Calvin Klein’s brandmantra includes word associations such “sexy, luxurious, minimal,classic, intimate, and professional.”

Brand Personality

Brand personality describes human characteristics or traits thatconsumers can attribute to a certain brand and can be measured inseveral different ways including: soliciting open-ended responsesfrom consumers, asking a consumer to profile the brand usingpictures from magazines or other media (known as “picturesorting”), and other methods. To assess a brand’s personality, itis best to use the following checklist: sincerity, excitement,competence, sophistication, and ruggedness. The sincerity of Calvin Klein can be described as honest,authentic, and genuine. Everything with the brand and its productsare very straightforward, especially when it comes to advertising.Calvin Klein advertises their products for exactly what they are,whether it is sexy denim and lingerie, the newest fragrance, or thehot “must-have” item of the upcoming season.

Daring, up-to-date, imaginative, and provocative portray thepersonality trait of excitement for Calvin Klein. The clothing isvery fashion forward with new lines each season and provocativeadvertising methods and products that stir excitement among new,potential, and regular consumers. Competence uses words likereliable, successful, and experienced to depict Calvin Klein. Thebrand’s products and service are reliable and of good quality. Thebrand has been successful since 1968 and has continued to gainsuccess and experience for the past 42 years. Calvin Klein is alsoexperienced with creating and providing a variety of differentproducts. The classiness and superiority of Calvin Klein are underthe personality trait of sophistication. Calvin Klein produces highquality products with moderate to high price points. The brand is

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well known by a large variety of consumers, which gives themsuperiority over other brands.The final personality characteristic is ruggedness. This does notdescribe the personality of Calvin Klein. The brand does not offervery outdoorsy or “tough” products, so this trait would not beassociated with the brand. A table of Calvin Klein’s brandpersonalities can be found below.

Brand/Marketing Strategies

Since Calvin Klein brands started with a line of women’s coats anddresses, Klein continued to expand on the original brand for thenext 40 years. This included menswear, sportswear, denim, and CKCalvin Klein all before 1990. The popular fitted and trademarkedjeans that branded his name birthed the Denim Line. Within the next10 years Calvin Klein brands expanded to home furnishings,accessories, intimates, and the most unrecognized children’s wear.Recommendations for further brand extension would be in thechildren’s wear segment.

The brand name that is still lacking in profit is Calvin KleinChildren’s. Introducing new designs and new advertising campaignsthat appeal more to working or stay at home parents would be asuccessful strategy to improve the brand’s equity. Calvin KleinChildren’s products include those similar to Calvin Klein Women’sand Men’s, to attract those parents who want to dress theirchildren with a similar style to their own. This includes designer

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denim, polo t-shirts, and accessories. To attract a wider range ofparent consumers, the brand must expand their products to includeclothing that children living in a household with a lower incomewould wear.The brand CK in Calvin Klein women’s is a more affordable, casualbrand made to attract a younger but still fashionable consumer.This brand should be extended to include Children’s wear, making itmore affordable for the parents and more appropriate for children.

Brand Marketing Programs and Secondary Associations

The marketing program currently implemented by Calvin Klein iseffective with his already loyal consumer base. To reach out to amore conservative target market the brand could advertise certainproducts in a less controversial way. Calvin Klein has many ways ofleveraging its secondary associations. For example, the brand couldbe emphasized on the fact that is an “American” brand, using thepositive associations that come with America and the pride itscitizens carry. Another way would be to continue using sponsorshipsor endorsements of celebrities that carry a high image to representthe weaker areas of the company. For example, using celebritychildren to represent the children’s line would provide greatemphasis on the brand. Sponsorships and endorsements have been verysuccessful for the older lines and this would enhance thechildren’s line.

IMC Proposal

Calvin Klein has successfully implemented the six criteria forintegrated marketing communication programs. The following criteriaare highly valued with the brand: coverage, contribution,commonality, complementarities, and versatility. Coverage is theproportion of Calvin Klein consumers reached by each communicationoption, as well as how much overlap exists among communicationoptions. The unique aspect of coverage is the inherentcommunication ability of a marketing option. Specifically, all ofCalvin Klein’s global advertising, marketing, and communicationprograms are executed by highly-talented, dedicated teams ofindividuals, operating as a machine with many moving parts (CalvinKlein: Advertising & Global Communications). Coverage is the

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strongest IMC component. For example, to reach maximum coverageCalvin Klein advertises profoundly through the use of billboards.The company has created QR codes so that consumers can be connectedto the brand wirelessly. The brand also offers traditionalbillboards that display a variety of all the lines Calvin Kleinowns.

Calvin Klein’s effect of specific marketing communication in termsof consumer processing is positive. For example, the brandincorporated QR codes (two-dimensional barcodes) on selectbillboards throughout New York, Los Angeles, and Houston as part ofan advertising campaign promoting Calvin Klein’s skinny jeans. Thebillboards displayed the QR code that gave device users access tomobile video that featured models Lara Stone, A.J. Sid Ellisdon,Grayson Vaughn, and Eric Anderson. Vice president of corporatecommunications, Jennifer Crawford, said “It was very successful andyou will see QR codes continue to be integrated into our upcomingcampaign.” Upon access, the video emphasized that the jeans are“engineered to enhance and maximize aesthetics in a sultry way,with a lean and slim silhouette.”

The effect allowed consumers to connect to the brand and share withtheir friends and family and it can also be sent to Facebook andTwitter. By leveraging QR codes, consumers are able to scan thecode be directed to their information, application, call center,coupon, or video without having to enter long URLs or phone numbersfrom their phone. For Calvin Klein, the QR codes were a means ofoptimizing advertising real estate.

Hang tags are an essential part of the retail industry and IMCproposal. Hang tags are an important marketing tool and contributesto brand building as it conveys critical information about theproduct (Le). The following image illustrates the components thatcreate a hang tag for Calvin Klein. The image depicts the hang tagof a dress garment. The image on the left includes the price,barcode, and product code. The image to the right is the other sideof the hang tag. It is black and white because those colorsrepresent the minimalist style of Calvin Klein. The tag alsoincludes a picture of Eva Mendes as she is a more recent model thatenhances the suggestive image of the brand. Underneath the logo is

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the term “simple, sexy, stylish.” These three words describe thestyle of Calvin Klein so consumers quickly can relate and desirethe brand. Towards the bottom includes fiber content and careinstructions as it is mandatory.

Developing integrated marketing communication programs builds brandequity. Specifically Calvin Klein uses a variety of differentcommunication options that share common meaning and content butalso offer different, complementary advantages so that the whole isgreater than the sum of the parts.

“ More for more” positioning

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SWOT analysis of Calvin Klein

SWOT Analysis evaluates the strengths, weaknesses, opportunities, andthreats that a brand may face. To further identify areas ofdevelopment for Calvin Klein, a SWOT analysis has been researched andanalyzed.

Strength:

Calvin Klein has much strength as a brand. One of the greaterstrengths of Calvin Klein is that all the apparel products are underlicensed agreements, which provide a legal backbone for the (Hoover’sProfile). This has been in practice since 1968. Calvin Klein is alsoknown for his minimalistic style, which has been and continues to be astrong selling point. Calvin Klein was awarded the Coty Award, aprestigious award for American fashion designers, in 1973, 1974, and1975 (Hoover’s Profile). Klein also created the “CK” monogram, one ofthe few corporations worldwide to own a two-letter domain name(Hoover’s Profile). The brand also owns Bras.com and Underwear.com,which broadens its accessibility. Advertising is another strong point of the Calvin Klein brand. Therisqué advertising, although controversial, boosted his brands sales.His jeans turned into a “must have” and his “coolness factor went from10 to 60…after all, the whole point of advertising is to attractattention” (Media Awareness Network). Models used in Calvin Klein ads

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include Brooke Shields, Mark Walhberg, Kate Moss, and Eva Mendes, andtheir careers took off after modeling for the Calvin Klein Brand. Thisproves how strong and acknowledged Calvin Klein is. The Calvin Kleinbrand has existed since 1968, and continued to be a strong companyuntil 2002 when Klein sold the brand to Phillips-Van Heussen, thelargest shirt and neckwear company worldwide (Hoover’s Profile). WhenPhillips Van Huessen took over the brand continued to flourish andCalvin Klein remained within the company as the creative head(Hoover’s Profile).

Many components exist under the Calvin Klein Brand including differentproduct types, brands, and stores. The existence of so many sellingcategories has strengthened the brand image and consumer awareness.The following table displays the brand’s components.

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Weaknesses:

While Calvin Klein has many strengths andsuccess stores, it also has some weaknesses.Advertising has been one of Calvin Klein’sbiggest strengths and greatest weakness.Although the risqué advertisements boostedsales, it also created controversy and turnedaway some potential buyers. For example, the1995 scandal involved a low budgeted commercialadvertisement which included you males andfemales dressed to the bare minimum posingprovocatively while being asked uncomfortable questions (Jiffy Notes).In 1999 another campaign scandal evolved where three ads werepublished for Calvin Klein’s Children’s Underwear line, and thechildren in the photographs wore only Calvin Klein undergarments(Media Awareness Network). The FBI investigated whether or not childpornography laws were violated in both instances. “In the UnitedStates, five criteria are used in determining pornographic images:focusing on the genital area, showing unnatural poses, depicting

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children as sex objects, implying that children are willing to engagein sex, and suggestive settings,” (Media Awareness Network.) Bothcampaigns were pulled so that no legal actionswould be taken (Media Awareness Network, JiffyNotes). The greatest weakness in Calvin Klein’sadvertisements is that it promoted a bad image forthe brand.

Opportunities:

Current opportunities for Calvin Klein include embeddingsustainability in apparel business, which helps in extendingoperations into Europe and Asia making them an international brand(Articles Base, The Financial Times Limited). For Fall 2010, the newjean collection will be introduced called X Denim.The collection is said to be “sexy with improveddesign to enhance and maximize aesthetics in asultry way.”(Apparel Trends and Fashion Forecasting)“The jeans are uniquely designed for a morecontoured shape enhancing fit and ultra skinny andnarrow leg.” (Apparel Trends and FashionForecasting) Calvin Klein has taken this opportunity to market to fitindividual shape of different body types.

Threat:

Calvin Klein’s largest threat is competition. Competitors includeRalph Lauren, Tommy Hilfiger, Armani, Lacoste, and Levi. TommyHilfiger has store locations in Europe, and according to Tom Murry,President and CEO of Phillips-Van Heusen, the European consumers seemto prefer the Hilfiger brand over Calvin Klein as net sales of theprevious fiscal year have shown (The Financial Times Limited). Otherthreats include economic instability, employee turnover, and licensingdisagreements.

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Mental Map- How do Customers feel about Calvin Klein

Calvin Klein is a well known and respected brand, and has been formany years. It has been a successful brand because of the feelings andbeliefs that consumers have for it. The brand holds its name becauseof its outstanding quality and good taste. The Calvin Klein brand hasaccomplished merging sophistication with a hint of sexy in itsclothing. Because of this, it attracts two different spectrums ofconsumer markets: the conservative type with a hint of rebellion andthe liberal type. “It works…because it gives a dangerous edge toclassic, minimalist clothes that on their own look relatively ‘safe’”(Haig). Consumers know from experience that Calvin Klein is atrustworthy and guaranteed brand. The quality that comes with theCalvin Klein brand is one that exceeds high expectations. People likehigh quality and sexy sophistication, and that is why Calvin Klein issuch a successful brand. The brand is made successful by the peoplewho buy it, the consumers. The consumers of the Calvin Klein brand aretypically middle- to high- class with good taste and the desire forfashion forward and stylish looks. They do not mind spending extra onclothing that they know is going to bring them compliments for years.

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The Calvin Klein brand reaches this market with its respectively high-priced clothing and its placement in department and specialty stores.

The Calvin Klein brand is composed of many “sub-brands” andlifestyles. “Brands and lifestyles include: Calvin Klein Collection,ck Calvin Klein, Calvin Klein, Calvin Klein Jeans and Calvin KleinUnderwear” (calvinklein.com). “Product lines under the various CalvinKlein brands include: apparel, accessories, shoes, sleepwear, hosiery,socks, swimwear, belts, eyewear, watches, jewelry, coats, suits andfragrances, as well as products for the home” (calvinklein.com).”

The Calvin Klein brand has been known many years for its sexy andprovocative clothing and advertisements. “Sex is just the brandidentity, implied through advertising” (Haig). Another imageassociated with the brand is high-class. This is a result of theclothing having a respectively high price point, so when consumers seeothers with Calvin Klein products it is assumed that that person musthave money to afford those clothes.

Calvin Klein can be compared to brands such as Polo Ralph Lauren,Izod, and Tommy Hilfiger. These brands all carry similar clothing asCalvin Klein at a similar price point. The styles can be consideredsimilar to competition but there is a difference that stands out aboutthe Calvin Klein style. Calvin Klein clothing holds a sexier,provocative title than any of its other competing brands. This ismostly achieved through its advertising efforts, but also some throughthe clothes themselves. This works for Calvin Klein and gives them a“leg up” in the competition because it provides its consumers with analternative to the “run of the mill” jeans, polos, and underwear thatis sold by its competitors.

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The image above is a mental map of Calvin Klein. Included are brandassociations. The mental map accurately portrays in detail all salientbrand associations and responses for the particular target market.Additional brand associations include classic, athletic wear, beautyand fragrances, discount stores, fashion forward, and innovativeadvertising.

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Recommendations for Improvement

Calvin Klein is a very successful brand because it has lived for morethan 40 years. That having been said, every successful brand alwayshas room for improvement. Some ways that Calvin Klein could improveits brand are as follows.The marketing program used by Calvin Klein is a very effective one.However, a way to improve it would be to reach to a larger market.Calvin Klein currently advertises mostly in stores and magazines. Bygrowing their marketing efforts, Calvin Klein could reach many more byways of television ads, promotions, and more.Calvin Klein has many ways of leveraging its secondary associations.For example, the brand could be emphasized on the fact that is an“American” brand, using the positive associations that come withAmerica and the pride its citizens carry. Another way would be usesponsorships or endorsements of celebrities in the weaker areas of thecompany that carry a high image. For example, using celebrity childrento represent the children’s line would provide great emphasis on thebrand. Children wear is still a new concept for Calvin Klein and itcould endorse young celebrities such as Justin Beiber and HannahMontana. Sponsorships and endorsements have been very successful forthe older lines and this would enhance the children’s line.

Finally, another productive way Calvin Klein could improve itsmarketing efforts is cause marketing. Mother Earth and its longevityare huge right now through the motto of going green. By saying thatCalvin Klein will donate a certain amount of proceeds to anenvironmental cause, makes buying its products more alluring,especially for those who are ardently environmentally concerned.

NEW PORPOSAL IDEAS

Giving Calvin Klein fresh ideas to generate larger income and newcustomer base, we propose a few ideas that will help the companyto achieve that-

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Calvin Klein Vibrant (cK Vibrant):

This is a new brand I propose for CK toembark the journey on. It is known as CalvinKlein Vibrant (cK Vibrant), which is atotally new sub-line that penetrates CK newmarket as a fresh look to the companyproducts. It sway away from thetraditional Calvin Klein concept designfor their products which is very conservative and minimalism,instead cK Vibrant promote wild and colorful vibrant clothing tothe market that is why it is call cK Vibrant. So we will usethis new sub-line to launch a new face for Calvin Klein whichcreates new season of clothing line, new look of bags, newaccessories, new advertisement and new poster advertising.Other than that we created a mission statement for this sub-line: "Be at ur limit".

Green Products:

This project is to let Calvin Klein develop a image of producinggreen products to gain public support and also help save theworld. For example, using recyclable paper bag or clothingbag for every purchase to the customer. Also Calvin Klein canproduce their product using recyclable textile materials such asrecyclable wool, linen, silk, cotton, hemp, etc. Indeed, thisproduct can actually launch itself an independent sub-linealso. Below are some visual examples of sustainable bags.

Online market:

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Calvin Klein views internet sales as a prime source offuture growth. We purpose to create online website buyingfor customer which can let consumer browse CK items at homeand order online. This will then later be delivered to theirdoor step. This will generate a new target customer base alsowhich is internet base consumers.

Partnership:

Wholesale could be the development of private labels withdepartment stores, for example cK Vibrant launched apartnership with Ecko. As a part of cK vibrant expansion plans,CK can partner with Ecko and debut in their stores with plansto expand to all Ecko flag-ship stores. The brand potentiallyallows cK Vibrant to target large demographic seekinghigh quality merchandise at lower prices. The privatelabel partnership represents a significant opportunity forgrowth in the Wholesale segment for CK, as the company couldenter more partnerships with new brands with Ecko or otherdepartment stores.

Campaigns:

Armani Exchange can also try support Cancer campaigns and ecofriendly campaign to promote a good image for the product andgain support from the public. However, there is opportunityto develop these campaigns.

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Privilege Card:

We notice that Ck doesn't have adiscount card or any privilege card.Make this one as one of an idea toincrease sale is good, even this issuch a common marketing plan in themarket yet is still useful.

To bring up to the next level, to be different with others, thiscan be not only a privilege card; can be a master card, visacard. Apply it with different bank. As what I design, I usedAMERICAN EXPRESS for example.

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References

Book references

Kotler & Armstrong, Principles of Marketing, 13th edition.

Http references

http://www.pvh.com http://www.scribd.com http://www.slideshare.net http://www.calvinklein.com/ http://www.calvinkleininc.com/ http://en.wikipedia.org/wiki/Calvin_Klein

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