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Introduction : MARK 5025 – Marketing Management Zara Case Study
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SN: Calvin Klein is a global brand that has been a part of a competitive market. The company is a part mainly faces threats which are renowned global brands of the fashion industry that are engaged with unique styling and designing, which provides market competition to Calvin Klien. The strengths of the organisation provide an enhanced market platform to obtain a wider range of market advantages. The weakness of the organisation can be a barrier to the market development of the organisation. However, the treads of the organisation can be a part of the degradation of business revenue of the organisation.
Enhanced retail outlets with extensive renovation
- Transformation of the way of shopping for the consumer(Nnnow.com, 2022)
- Aims to enhance products sales by advancing the venture of consumer shopping
- Enhancing customer strength and engagement
SN: Calvin Klein pursued the transformation of the consumer shopping way that is based on in-store and online by enhancing the utilisation of technology implementation for enhancing the shopping experience of the customer in a consistent and personalised manner. The major aim of the organisation is to enhance product sales by elevating the experience of consumer shopping. The business purpose is to enhance the engagement of the consumer and to strengthen the market position.
Calvin Klein's advertising strategies
- The organisation utilises innovative campaigns
- The power tools of Calvin Klein are the influencers and social media (Calvinklein.us, 2022)
- Leveraging technology
SN: Calvin Klein utilises innovative making campaigns to enhance the market position, which is based on the brand value of retail fashion. The company is utilising technology in a wide range to offer a more intense buyer experience.
Porter five forces
Threats of a new entrance
Bargaining power of supplier
Bargaining power of buyers
Threats of a substitute product
Competition between the competitors
· Less capital is required to enter the market
· An existing company can make fewer efforts to retaliate
· Brand loyalty is more for Calvin Klein.
· Commutative experience
· Barriers to entry into the market
· Government policies
· Distribution channels need to be accessed
· Switching cost
· Size and number of suppliers
· Unnikness of supplier's products
· Company’s ability to substitute
· Number of customers
· Size of an order of individual consumers
· Competitors product difference
· Price sensitivity
· Buyers availability information
· The ability of buyers to substitute.
· Switching cost
· Substitutes available in the market.
· Buyers tend to substitute
· The price performance of the product related to the same product of the organisation
· Awareness of product differentiation.
· Cost of switching
· Number of competitors
· Industry concentration
· Diversity of competitors
· Industry growth
· Brand loyalty
· Switching g cost
· Exiting barriers
SN: The entering barriers for the new industry are more as the capital needed for the development of this type of industry is more. So this seems to be a threat to the organization as there is a chance of developing a greater number of competitors. Very fewer efforts can be made by the competitors to retaliate against Calvin Klein. Brand loyalty is satisfactory for the organization because of the uniqueness of the product. The loyalty of the consumers is more because of the choice of the consumers. If the switching cost is less then consumers won't switch as it is the best choice for consumers but if the switching cost is more the consumers may switch. The bargaining power of the suppliers is more as there is a greater chance of making competition in the market. The bargaining power of buyers shows the number of customers, size of business order, competitors, price sensitivity, and ability to substitute buyers. The threat of substitute products includes available substitution, buyer tendency, product price information, product difference awareness, and switching cost. The competitor's competition includes several business competitors, industry concentration, growth of the industry, loyalty value and switching cost, and existing barriers in the business process.
The essential features of Calvin Klein's promotion technique
- It must operate debate as a mechanism to facilitate the brand's character
- They might not be frightened of constructing suggestive campaigns for their products
- Calvin Klein must utilise sociable media megastars and influencers (Biégas, 2018).
SN: the organization should make strategic plans and develop a meeting for the benefit of the organization in terms of developing better advertisement strategies. The organization must conduct a campaign for promoting its brand and create awareness among the people for new as well as existing products with proper explanations of products. Calvin Klein has to work in the social media sector as it is one of the most relevant ways to interact with consumers. Social media is the best approach for consumers as it is generally operated by every individual.
The essential features of Calvin Klein's promotion technique (contd…)
- They might promote their brand on social media sites with valuable offers
- Calvin Klein must exploit sociable media superstars and sociable media influencers to broadcast their products
- They must work on their performance benchmarking (Chambhare and Anute, 2019).
SN: the advertisement of the product with valuable offers attracts consumers and increases sales and generates revenue for the organization. Calvin Klein has to implement the advertisement process in social media which includes Instagram, Facebook, and Twitter. They are more possibilities to increase sales after entering into social media.
4 ps of market mix
- The unique quality and design of the clots have attracted consumers.
- It has developed an elegant design with footwear (Calvinklein.us, 2022).
- It also provided health and beauty skin care.
- The brand was established in the international market and a flagship store is located on Madison Ave.
- It is present in 21 countries outside the United States of America (Calvinklein.us, 2022).
SN: Calvin Klein has introduced a design of clothing with proper comfort. It started its products by manufacturing underwear, shirt, pant, coats, and sportswear. Then it moved to produce beauty products and footwear. It also has manufactured jeans with elegant designs for attracting the consumer. The place strategies include the international market as the brand is well renault organization. The organization is established in the whole world but flagship stores are present on Madison Ave. It is spread in 21 countries.
4 Ps of the market mix continue.
- Price strategies apply to both middle and higher-class societies.
- Designer clothes have a greater price as compared to general clothes (Calvinklein.us, 2022).
- Calvin Kelin has lowered the price from, other competitors.
- It has used many channels such as TV and direct marketing (Ndegwa, 2021).
- It also uses social media, promotions, and sales campaigns.
Sn: the pricing strategies of the organization deal with middle and higher-class people. The price is comfortable for both class people. The designer's clothes have higher rates as compared to other brands' clothes. The channels used for the promotion of products of Calvin Kelin are social media direct marketing, TV, and sales campaigns. The use of the internet, Artificial intelligence, and technologies that are used for promotional activities. It also makes use of celebrities for advertising the products.
- Cash flow should be improved and increased to its highest level.
- Implement fitting sizes for the consumers.
- Provide seasonal or festival offers to the consumer.
SN: to increase the retail in Calvin Kelin and reduce the price of the brand needs to increase the cash flow and implement various analysis processes to loopholes. Introduce a new part that adds fitting labour for the desired fitting process to fulfil the need of the consumers. Offer to attract consumers and the company must provide offers in a particular season.
Price reduction continues...
- Optimisation of e-commerce retail front.
- expansion of product lines as well as refining merchandising.
- Franchising in various parts of the world
Biégas, S., 2018. Marketing Innovation Capacity and Firm Perfor-mance in Brazilian Clothing Industries. REBRAE, 11(3), pp.343-355. Doi: https://doi.org/10.7213/rebrae.v11i3.24204
Chambhare, M.R. and Anute, N., Social Media Marketing Strategies Adopted by Fashion Brands. Journal homepage: www. ijrpr. com ISSN, 2582, p.7421. Doi: https://ijrpr.com/uploads/V3ISSUE8/IJRPR6376.pdf
Ndegwa, R.M., 2021. Marketing Mix Strategies, Firm Characteristics, Competitive Environment and Performance of Tour Firms in Kenya (Doctoral dissertation, University of Nairobi). Doi: http://erepository.uonbi.ac.ke/handle/11295/155699
Calvinklein.us, 2022. Calvin Klein® USA | Official Online Site and Store Available at: https://www.calvinklein.us/en [Accessed on: 03/11/2022]
Nnnow.com, 2022. Calvin Klein Official Online Store in India at NNNOW Available at: https://calvinklein.nnnow.com/ [Accessed on: 03/11/2022]