Segmentation and Target Marketing, Calvin Klein
Calvin Klein Inc is a fashion label that was established in 1968 and is headquartered in Madison Avenue New York (Sutjiono, 2013). The Calvin Klein brand is currently owned by Philip Van Heusen Corporation and offers a wide variety of products in the luxury apparel retail industry. These range from women's wear and accessories, men's wear, footwear, household goods to personal care products and fragrances. The company has grown in tremendously over the last three decades to become one of the leading fashion houses in America due to its product differentiation strategies which include minimalist but sophisticated designs for the fashion conscious individual.
Market segmentation can be described as the identification of market segments or sets of buyers with homogenous attributes which can respond favorably to a company's marketing mix (Approaching global markets, 2011). Due to the wide range of products that are offered by Calvin Klein, a flexible segmentation strategy has to be employed in order to cater to the many consumer segments that the varied company product lines target.
[...] The Calvin Klein brand offers a wide product price range i.e. from moderate to highly priced goods. As such its products are distributed throughout all tiers of most departmental stores including Macy's, Saks and Nordstrom as well as its own premium outlet centers (PVH, 2011). The moderately priced products are found within the CK Calvin Klein collection while the higher end products can be found within the Calvin Klein collection. within the premium outlet centers; however, the vast majority of Calvin Klein products are aimed at urban youth and high-end business executives who are trendy, and looking for a stylish but minimalist look. [...]
[...] The designer's exploitation of sultry and neutral colors further emphasizes the minimalistic nature of his designs. Behavioral variables Behavioral segmentation mostly exploits user status and user rates as segmentation variables (Introduction to Fashion Retailing, 2010). The Calvin Klein brand at its very core is a luxury label and as such, it heavily relies on purchases from consumers with considerable spending power. This is because people with lower spending power are price sensitive when making decisions to purchase apparel and other non-essential amenities, and this puts most of the company's products out of their price range. [...]
[...] For example, one can find men's suit costing as much as $2000 in an outlet while women's professional wear costing as little as $200 in the same outlet. As such, one can categorize the target market of Calvin Klein products as being made up of two distinct target market segments, the wealthy consumer and the fashion conscious strive who has limited resources, but likes to emulate the purchasing habits of people with greater material wealth. References (2011). Approaching global markets. In Segmentation, targeting and positioning (pp. 225-257). Brannon, A., Chirichella, B., Schaffer, C., & Wittmer, J. [...]
[...] Nothing.' This was just one of many controversial promotions that Calvin Klein run throughout its history. To many of the teens and young adults, sporting Calvin Klein apparel made them feel rebellious, hip and even radical as a direct result of the controversy and furor that such promotions caused. In recent times, the heavy use of celebrity personalities like Kate Moss, Mark Wahlberg, Eva Mendes and many others has helped cement the brand's iconic image to the young consumers. These celebrities boost the power of the brand vis a vis its competitors like Tommy Hilfiger, Armani and Ralph Lauren. [...]
[...] Segmentation and Target Marketing - CALVIN KLEIN INC. Market Segmentation and Target market for Calvin Klein Inc. Introduction Calvin Klein Inc is a fashion label that was established in 1968 and is headquartered in Madison Avenue New York (Sutjiono, 2013). The Calvin Klein brand is currently owned by Philip Van Heusen Corporation and offers a wide variety of products in the luxury apparel retail industry. These range from women's wear and accessories, men's wear, footwear, household goods to personal care products and fragrances. [...]
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