Professional Documents
Culture Documents
Principles of Marketing: Assignment # 2 Name: Muhammad Saad Asif Student Id: 11058 Company: Calvin Klein
Principles of Marketing: Assignment # 2 Name: Muhammad Saad Asif Student Id: 11058 Company: Calvin Klein
Assignment # 2
Name: Muhammad Saad Asif
Student id: 11058
Company: Calvin klein
Question #01: What does a Brand Do? How it is Branded?
Fragrances
Calvin Klein has various lines of perfumes and colognes, including Obsession and Eternity. Until
May 2005, their perfumes and the corresponding fragrance lines were maintained by Calvin
Klein Cosmetics Company (CKCC), a Unilever company. Cosmetics giant Coty, Inc. of New
York bought the fragrance licensing agreements from Unilever.
Branding:
Like other fashion brands, Calvin Klein established a monogram: the "ck" emblem.
Calvin Klein is a popular brand for casual outfits. The company has two main
business operations. The operation that takes care of production and sale for men and
women apparel is the Calvin Klein Apparel. The operation that takes care of licensing
is the Calvin Klein Licensing.
1) Ralph Lauren
2) Armani
3) Chanel
4) Versace
5) Gucci
6) Tommy Hilfiger
7) Hugo Boss
8) Guess
9) LVMH
10) Kenneth Cole
11) Donna Karan
First products that were launched by brand Calvin Klein was a line of understated coats and
youthful dresses and by the year 1971 its kitty included lingerie, classic blazers, skirts, shirts,
pants and sportswear for women. Classic fabrics, earthy tones and simple yet elegant designs
gave his work an understated elegance which became highly popular. Later sunglasses, furs,
belts, shoes and scarves were added to the collection. During the late 1970s, Calvin Klein re
launched his collection of jeans and gave it a more firm shape which became a rage amongst its
customers. Later this jeans-inspired assortment included jackets, skirts and shirts. Products in its
men’s collection included overcoats, suits and neckties that were stylish, comfortable and simple.
In the year 1989, brand Calvin Klein opened its first store in Dallas Suburb. It was a free-
standing full-line store with products like fragrances, cosmetics, accessories, outerwear, shoes,
hosiery, sleepwear and underwear for both male and females. In the year 1995, the brand opened
a 22,000-square-foot store of four levels at Madison Avenue. By this time its number of stores in
the United States were six through which it was dealing successfully with its customers. During
1993 and 1994, the company made a deal with four companies of Japanese origins for creating
in-store shops. By now brand was selling its products through an estimated 12,000 outlets in the
United States and its products were also being sold in countries like Japan, New Zealand,
Australia, Ireland, United Kingdom and Canada.
Brand Calvin Klein has opted for competitive pricing policies that are changeable to suit
the needs and requirements of particular product line or place. In 1977 it was able to generate
huge revenues because of its penetration pricing policy as it wanted to keep its prices lower than
its major competitors. Its strategy was successful and its products became highly popular among
both older and younger generation and also among middle and wealthy class of people.
Competitive pricing has helped the brand in maintaining the loyalty of its customers through
high sales.
Calvin Klein has always believed in the positive impact of promotional strategies and has
undertaken various measures to promote its business. Controversial advertisements have also
helped in high visibility in markets and have resulted in huge turnovers. In the late 1970s, a
billboard at Times Square was put up showing Patti Hansen, a model, on her knees and hands
with her derriere skyward and brand label visible on right hip. This caused a sensation. One of
the most controversial ads of Calvin Klein jeans were of 15-year old Brooke Shields posing in
skin-tight pair with provocative comments. Although the posters were later taken down but by
that time they had done their part in making the brand a high-profile one.
Market segmentation
Calvin Klein has an existing loyal target market. We want to capture this existing market, and
also encourage more purchasing frequency. Our multi-use new product will attract a larger
segment as those who have not yet bought the underwear due to the premium price will be more
likely to consider the swimwear, as it has two functions and in their minds it provides more
value.
The main segment we are targeting in the launch campaign is:
– 21-30 year olds males and females
– With high disposable income
– Fashion and trend conscious
– Sydney’s inner city, metropolitan dwellers, as well as coastal areas such as the northern
beaches
Targeting
Our swimwear is for both males and females. By targeting a specific small target market for the
launch campaign, which includes the existing brand loyals, and those with a high disposable
income . In the attempt to encourage a word of mouth buzz surrounding the new range. This will
encourage those outside the premium segment to desire and buy the product.
Positioning
The swimwear range will be positioned using price/quality characteristics. The product will give
wearers a sense of prestige and style, which will filter down through followers of trends and the
early majority.
Brand personality:
Calvin Klein is a born leader, with extra-ordinary drive and determination. Insisting
on his right to make up his own mind, he demands freedom of thought and action,
and does not let anything or anyone stand in his way once he is committed to his
goal.
Always seeking the forefront and the limelight, Calvin needs to feel in command of
important undertakings, and resists supportive roles. He can become irritated and
even domineering when important things do not go his way. Klein can be impatient
with his shortcomings and those of others.
Calvin Klein is very concerned with his status and fosters the appearance of success
and self-satisfaction. Interestingly, that very same need to appear well-off can be
the fuel that propels Calvin to strive for growth, success and the finer things of life.
Calvin Klein assumes the responsibility to be the protector and provider for those
he loves, but demands their respect and attention in return.
Exceptionally creative and original, Calvin possesses a touch of the unusual. His
approach to problems is unique and he has the courage to wander from the
traditional templates of thoughts and deeds.
-Advertising (Magazine):
It is essential to have the new CK swimwear show up in the fashion magazine. As most of early
adopters are fashionable people, the new CK swimwear which not only offer a comfort but also
fashionable look and design will buzz this particular niche market.
-Direct Marketing:
By communicating directly with existing loyalty club members through mail, this tool will
encourage consumer to purchase directly from both manufacturer and subsidiaries stores. It is
very useful to encourage brand loyalty and purchasing of the new CK swimwear line. This may
increase awareness of the new product and may shift consumer to a higher level of purchase
behaviour.
-Personal selling:
In this tool, our team project aim to achieve a professional look by providing each CK’s stores
with a salesperson that is highly knowledgeable regarding the new CK swimwear. To create a
sense of the premium brand, the store will be re-designed to create a sense of luxury that
encourages the belief of a quality product, and attracts fashionable high income earners to the
store.
Calvin Klein has a new logo, which has been tweaked and redefined by graphic designer Peter
Saville.
The fashion label has swapped out its lowercase logotype for an uppercase one with a smaller
kerning gap between letters, retaining its black colour and sans-serif.
It aims to pay homage to the self-named company’s founder, who launched the US company in
1968, and to the “foundations of the fashion house”, says the company.
Calvin Klein’s in-house creative team, headed up by chief creative officer Raf Simons, worked
on the new logo, collaborating with Saville.
A lowercase “ck” previously sat above the Calvin Klein logotype and was used alongside it – it
has not yet been confirmed whether there will be a new short-hand uppercase “CK” icon to go
alongside the new logo.
Brand equity:
With all the advisement and campaigns, the brand is perceived as a global lifestyle brand that
exemplifies bold and progressive ideals with the seductive and minimalistic aesthetic.
The brand’s image is kept consistent through the brands distinctive marketing identity and
strategy. People with intimate, modern, iconic and classic lifestyle imagery gets attracted to the
brand. The brand describes itself as the honest, authentic and genuine brand. With continuous
success since 1968, the customers view CK as a reliable fashion brand which is minimalistic and
classic
With the Kardashians and Jenners family featuring in the “MyCalvins” campaign, it created a
strong message highlighting the importance of family. With Justin Bieber endorsing the
underwear segment helped to attract the young customers.
With the #IAMWOMEN campaign, the brand talks about women empowerment and has
introduced perfume ranges, drawing inspiration from the multifaceted identity of feminity with
aspirational women around the world endorsing the brand.
There are more than 446,029 photos on Instagram with the tag #mycalvinsand found more than
4.5 million interaction. The campaign was then displayed on billboards on prints, Ck stores etc.
On the Calvin Klein website, there is a #mycalvins gallery which encourages customers to
upload the photo of themselves in the social media and get a chance to be featured on their
website.
The fact that the campaign has captured the desired target audience using their customers without
any cost, causes it to be so successful
Department Stores
The major department stores in the US, including Macy's, Lord & Taylor and Nordstrom, as well
as many small independent stores carry the ck, white label and/or Jeans collections. Some high-
end department stores, such as Bergdorf Goodman, Saks Fifth Avenue and Neiman Marcus also
carry the Calvin Klein Collection. Notable retailers in the UK offering Calvin Klein include
stores such as John Lewis, Debenhams and KJ Beckett. In Australia, the dominant retailer
is Myer. Calvin Klein products are also found online with particular internet focus on selling
Calvin Klein underwear and fragrance.