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Segmentation and Target Marketing - CALVIN KLEIN INC

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  1. Introduction
  2. Market segmentation
  3. Socio-Economic Segmentation
  4. Demographic segmentation
  5. Psychographic segmentation
  6. Behavioral variables
  7. Geographical segmentation
  8. Positioning Statement
  9. Target Market
  10. Conclusion

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. [...]

[...] The company hopes to reinvigorate their operations in North America and Europe where they have been experiencing relatively slow growth. At the same time, they should be aggressively pushing sales of their products in the rapidly growing economies of Asia and Latin America. These two regions represent the biggest prospects for growth due to the rapidly rising incomes of these regions brought about by economic growth. Positioning Statement Calvin Klein is one of the biggest fashion brands not only in America but in the entire world. [...]

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