Download - EL Brand Strategy
BRAND STRATEGY
Insight: Every business built as a portfolio needs a business driver, where strong equity, long-term sustainability, global potential allows for continuous growth.
In our current group of brands, Donna Karan is it.
Detail of Key Initiative #1
Key activities that need to be implemented to support this initiative:
Financial impact FY09 to FY11:
Sales impact:– Franchise growth planned at 5.3% from
09 to 11, excluding color launch
– NOP margin impact:– 4.8% NOP in F’08 to 7.9% by F’11,
excluding Color launch– Color launch dilutive in first year, with
break-even after year 3, provided we reach a productivity per door of $350 k and we share demonstration with PX in half of our doors. $960 k per door required absent sharing arrangement
Detail of Key Initiative #1
FY08:
• Solidify our winning franchises (Delicious and Cashmere Mist)
• Expand distribution where relevant to generate profitable sales
• Invest to secure our visibility in media and at POS (# of doors)
FY09:
• Roll out DKNY Delicious Night and launch DKNY Man
• Continue to improve visibility and build “cathedrals” with exclusive DK properties
FY10:
• Launch new DKNY woman franchise (Pure)
• Introduce DKNY color in limited (or exclusive) distribution:
GLOBAL PRESTIGE FRAGRANCE COMPANIES
Men’s and Women’s Fragrances CY 2005 vs. 2006
CHANEL GIORGIO ARMANI
DIOR CALVIN KLEIN
HUGO BOSS
ESTEE LAUDER
LANCOME YSL JEAN PAUL GAULTIER
GIVENCHY0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
2005 2006
$'00
0
Source: NPD CY05 & 06, Generations CY05 & 06, European Forecasts CY05 & 06 (Worldwide Net Sales)
ADF Overview
36%
38%
16%
5%4%1% 1%
Donna Karan Tommy Hilfiger Aramis Lab Series
% Contribution by Brand F'05
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