Marketing strategy of Calvin Klein: American fashion home and luxury products manufacturer founded in 1968. It specializes in leather products, lifestyle accessories and home furnishings, fragrances watches, and ready-to-wear luxurious goods.
The headquarters are located with its headquarters in Midtown Manhattan, New York City, the company was established with the help of Calvin Klein together with his close friend Barry K. Schwartz before being transferred by Phillips Van Heusen (PVH) in 2002.
Did You Know About Calvin Klein?
Company : Calvin Klein
CEO: Cheryl Abel-Hodges
Founder: Calvin Richard Klein
Year founded: 1968,
Headquarters: New York, NY
Annual Revenue : 9.91 billion U.S. dollars
Profit | Net income : 3.67 billion U.S. dollars
Products & Services: women’s dresses and suits, men’s dress furnishings and tailored clothing, men’s and women’s sportswear and bridge and collection apparel, golf apparel, jeanswear, underwear, fragrances, eyewear, women’s performance apparel, hosiery, socks, footwear, swimwear etc.
Competitors: LVMH | Michael Kors | The RealReal | GUESS
Calvin Klein Fun Fact : He single-handedly created the designer jeans craze of the 1970s, and then revolutionized fashion advertising in the 1980s. Today his name adorns everything from underwear to perfume. And his stylish designs and business acumen have built a fashion empire.
Segmentation, Targeting and Positioning in the Marketing strategy of Calvin Klein
Calvin Klein adopts a flexible segmentation strategy since it provides an array of products in order to serve various customers. The customer segments vary between the different products categories.
Making use of segmentation of the market by taking advantage of customers’ desires with the aim of establishing lasting relationships with their customers and also attracting new customers. With regard to the demographic segmentation, it is evident that the company concentrates on middle-class business executives and young people. The psychographic segmentation has identified customers who adhere to a particular lifestyle, are fashion-conscious but are not price-sensitive when it comes to spending on clothes.
The targeted customer that the product is aimed at is mainly young people and they have utilized celebrities bloggers, influencers, and bloggers as part of their”My Calvins” campaign “My Calvins” to influence young adults to purchase their products. The targeted customers are males and women who are between the ages of 15-30. They are probably not married, and the target audience to be targeted for the “My Calvins” campaign would be aspirers and explorers.
The company’s positioning is that of products that are high top-quality products specifically designed for urban teens and executives from high-end businesses who are fashionable and elegant but prefer a minimalist style. Celebrity endorsement is an important element when it comes to the positioning of products on market With Justin Bieber endorsing the underwear segment. It helped draw young girls who are looking to make their male friends look like Justin Bieber. The brand has capitalized on its illimitable fame and has targeted several customers.
Mission Statement in the Marketing strategy of Calvin Klein
“We believe in a culture that provokes discovery and brave thinking. We strive to make a positive impact on the world. We inspire passion in our people. We embody authenticity and embrace individuality.”
Vision Statement in the Marketing strategy of Calvin Klein
“Become one of the first choices of consumers”
Competitive Advantage Marketing strategy of Calvin Klein
Being able to offer a wide range of styles can be a big benefit for the company that predominantly offers products in the category of that are ready-to-wear fashions for women and men.
In addition, they provide perfumes and accessories such as eyewear, watches jewelry, shoes, and other accessories for both women and men.
Some of the major competition for the brand include brands such as Tommy Hilfiger, Ralph Lauren, Jockey, Hugo Boss, Donna Karen, Giorgio Armani
It is ahead of its competitors when it comes to licensing, CK uses “licensing” to sell its products around the world. It operates in two broad categories: Calvin Klein Apparel, which manages sales of its collection that includes both men’s and women’s clothing, giving the company a share of sixty percent share of revenue in addition to Calvin Klein licensing which takes responsibility for its licensing agreements with third-party companies.
BCG matrix in the Marketing strategy of Calvin Klein
Calvin Klein as the brand when plotted on the BCG Matrix of retail industry features in the question mark segment. The reason is the pricing of other brands like Levi’s, Tommy Hilfiger, US Polo, Puma, etc. is economical thus is more preferred among customers. The company will have to work on its pricing and ultimately marketing strategy especially in a country like India to stay ahead of the competition.
Calvin Klein as the brand when shown onto the BCG Matrix of the retail industry is featured in the segment with question marks. The reason for this is because the price for other brand names such as Levi’s and Tommy Hilfiger, US Polo, Puma, and so on. is cost-effective, and thus popular with customers. The company must review the company’s prices and eventually its marketing strategy particularly in countries such as India to keep ahead of the pack.
Distribution in the Marketing strategies from Calvin Klein
The brand throughout time has grown across the world as well as the distribution channel It has also invested in establishing a reliable chain of the supply chain that meets the business requirements.
Brand’s ability to provide worldwide procurement, as well as an established global network of suppliers, is able to meet its clients’ requirements efficiently without relying on a single supplier or manufacturing facility in a single country.
In the first quarter of 2017, a joint partnership together with the Arvind Limited brand made its supply chain more flexible and robust. The manufacturing unit located in Ethiopia assists the brand to manufacture products with a cost advantage. cost-effective price and are distributed across The United States under its traditional brand.
Brand equity in the Marketing strategies from Calvin Klein
Through all of the advice and advertisements, it is viewed as a lifestyle brand that represents the bold and forward-thinking ideals of the minimalist and seductive style.
The image of the brand is maintained constant through the brand’s distinctive identity and marketing strategy. The people with modern, intimate classic, and iconic images are drawn to the brand. The brand claims to be an authentic, genuine and authentic brand. With a steady rise since 1968, The customers see CK as a trustworthy fashion brand that is simple and timeless.
The unique selling point of the brand is their sexy and comfortable products made from innovative fabrics that are of exceptional quality.
Marketing analysis in the Marketing strategy of Calvin Klein
Recent research conducted by HTF market intelligence consulting Ltd. It suggests that the womenswear category of Calvin Klein would have a share of 17% less than just Givenchy Dolce Gabbana, Gucci, and Burberry.
Both brands of PVH’s Calvin Klein and Tommy Hilfiger continue to see growth over time and have been working with the company that has around 60% of their revenues come from the foreign market.
Customer Analysis of Calvin Klein
Calvin Klein’s customers Calvin Klein mostly consist of the younger generation, in particular women and men between 15 and 40 years old. People who have high disposable earnings and those who are more cognizant of the latest fashions and trends comprise the biggest portion of Calvin Klein’s customers.
Promotion strategy of Calvin Klein
In 2015, about $320 million was spent worldwide on advertising marketing, promotion, and promotion of Calvin Klein brands.
The Kardashians as well as the Jenners family featured as part of”My Calvins,” the “MyCalvins” campaign, delivered a powerful message about how important family is. The fact that Justin Bieber endorsed the underwear segment, helped attract young buyers.
In the #IAMWOMEN campaign, the brand is promoting women’s being empowered and has also launched new perfume collections, drawing inspiration from the diverse identity of women, with aspirational women all over the globe embracing the brand.
It also provides the direct-marketing by allowing customers to sign up for the newsletter of the brand, which will send the consumers emails with information about the brand’s promotions and promotions, which ensures consistent communication, which will increase the brand’s reputation.
More than 446,029 pictures on Instagram have the hashtag #mycalvins. discovered greater than 4.5 million interactions. The campaign was later displayed on billboards in print shops, Ck stores, etc. On the Calvin Klein website, there is a gallery called #mycalvins that allows customers to upload an image of themselves on social media platforms and have the possibility of being featured on their site.
This is due to the fact the marketing campaign has successfully reached the intended public with their customers at no cost is the reason why it has been very successful.