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Calvin Klein One

Marketing Assessment

Andrew Chung

on 3 June 2010

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Transcript of Calvin Klein One

one About Us:

Calvin Klein Inc. is an international fashion brand founded in 1968 in New York City. They achieved stunning growth throughout the early eighties when they launched their new underwear line with the actor Mark Walhberg used as their model. The company was bought by shirt maker Phillips Van Heusen Corp in 2002 for $400,000,000. Most of its revenue is sourced from licensing its name for products such as shoes, jeans and furniture. What started with a range of coats, has since become a leading brand in jeans, underwear, and fragrances and a reputation for simplicity and elegance in its design.
-The Calvin Klein name represents a high quality image and has international brand awareness.
-Backing by parent company (Phillips Van Heusen Corp).
-Product is unique
S. W. Weaknesses:
-Has to compete with their own brands within the company, such as Calvin Klein ‘Eternity’ which is also a unisex fragrance.
- Undifferentiated products or services to a certain degree.
-Unisex fragrance is a small percentage of total fragrance sales in Australia.
O. Opportunities:
-Increased interest in environmentally friendly products.
-Can expand on their already existing international customer base.
T. Threats:
-Aggressive and strong competitors (Armani, Polo Ralph Lauren, Donna Karan).
-Shifts in tastes of consumers away from the firm’s product.
Target Market:

Calvin klein adopts a target marketing strategy. The market segments can be differentiated by sex, age and social status.
Sex: Male and female
Age: 15-35

Targeted towards older and younger

Highly populated areas such as major cities around Australia.

'cK one' is marketed to attract people as young as teenagers. Its purpose is to provide a sense of unity as the product is not selective of sex (unisex). o Action Plan: Psychographic segmentation:

Our focus is targeting 'cK one' perfume at consumers who are interested in a higher quality product, compared to other subtitute products on the market. Individuals in society who are optimistic and socially aware, who are image conscious and want the 'look at me' factor. Both potentential and regular users of our products are seeking higher end quiality and have an awareness and positive attitude towards our brand name.

Stores Product will be launched from:

Calvin Klein Jeans
David Jones
Positioning Strategy:

'ck one' is positioned as a beauty/luxury product on the market as a very well known brand name.

The positioning strategy we have chosen to adopt for 'cK one':

Product Attribute: as it makes people smell nicer and feel more confident about themselves. Our product is also unisex, so it is useable by either men or women. The fragrance is encased in environmentally friendly and recycleable material.

Against a Competitor: We have also positioned 'cK one' against their competitors, due to the aggressive competition from Donna Karan, Polo Ralph Lauren and Armani, with their similar input into unisex products. The three marketing objectives for 'cK one' perfume are:

To launch an effective marketing strategy to further increase product awareness due to the introduction of new perfumes from other brands as well as within the Calvin Klein brand.

To inform the target audience about the benefits and features of the product and that it’s still worth buying such as it’s a recyclable bottle, hence good for the environment and that it’s a unisex perfume.

Increase sales by 10-15% in the next 6-12months.

Marketing Objectives . . .
Current Market Situation:

The Australian fragrances market reached a value of $426.3 million in 2008. It is expected to grow by 26.4% by 2013. The total market volume for fragrances in 2008 was 13.8 million units and forecasted to grow by 20.3% by 2013. Female fragrances dominated sales in Australia with a share of 64.8% of total market revenue. The Australian fragrance market boasted strong growth rates in the years leading up to 2008, however, the market is expected to decelerate over the coming years.
c k

Calvin Klein Inc 2010, viewed date 19th April 2010 <http://www.calvinkleininc.com/corporate.aspx >

Fragrances Industry Profile: Australia; Oct2009, p1, 37p, viewed date 8th May 2010,
< http://myersupplier.myer.com.au/images/myer_logo_large.jpg >

Internet Center for Management and Business Administration, Inc 2002-2007, The Marketing Mix (The 4 P’s of Marketing), viewed date 23rd April 2010, < http://www.netmba.com/marketing/mix/ >

Kotler, P.; Adam, S.; Denize, S.; and Armstrong, G. Principles of Marketing. 4th Edition Pearson Australia

Sunset, B 2008, Marketing Campaign: Case Studies, viewed 19th April 2010,
< www.marketing-case-studies.blogspot.com/2008/04/ck-be-campaign.html>

Viewed date 8th May 2010 <http://www.parfumeriata.com/osc/images/203calvin_klein_logo-400-400.jpg>

Viewed date 10th May 2010

Viewed date 10th May 2010
< http://www.designeroof.com/wp-content/uploads/image/calvin%20klein/ck1%20ad.jpg

Wharton School 2001, Calvin Klein And The Making of cK One, viewed 29th March 2010, < http://www.janhoo.com/skole/university/ckone.html >

. . . . . . . . P
roduct. Brand Name: Ck One
Functionality: To spray on yourself, to appeal to others, cosmetic.
Styling: Simple recyclable transparent bottle
Quality: High end luxury brand, expensive
Packaging: Beige box made from recycled paper
rice. CK one is using premium pricing because there is uniqueness about this product and the premium price attached to Ck one is the luxury and the reputation of the brand name. If CK one were lower its sales prices and become more affordable by the lower income consumers, this will then lose much of the appeal as a luxury product and brand name. The recommended retail price is $89.95 for the Ck one 200ml bottle in today’s price. lace. CK one has a limited distribution, as CK one wants to be known as an exclusive product. CK one does not need to find a lower-cost distribution channel and they do not need to establish an online presence in order to protect their brand, because the barriers to entry into the luxury goods sector are already secure. romotion. Ck one’s Promotion strategies include advertising, sales promotion, publicity and personal selling. Ck one marketed its perfume as a unisex perfume which is to appeal all genders and subcultures.
Action Plan:

June: Establish connections and appropriate distribution orders with our chosen deparetment stores who will be selling our product (Myer, Calvin Klein Jeans, David Jones).
July: Launch an advertising campaign across various channels on the internet (twitter, facebook, youtube), commercials (promoted by Erique Iglesias and/or Megan Fox) and billboards. Hire salespeople to sell and promote our product in high traffic areas such as Parramatta Westfield Shopping centre. This will be the main avenue of creating awareness for our product.
August: Initiate product placement in movies.


'cK one' is stylish and environmentally friendly fragrance that is suitable for most ages and any gender. The unisex fragrance segment is a niche market. We are launching our marketing strategy for this product targeted towards both genders between the ages of 15-35 with a motive of increased sales and brand awareness. 'cK' one is positioned as a luxury/beauty product bought to enhance social image. A premium pricing strategy and limited distribution was deemed most appropriate for our luxury product.
forever together - Created by:

Andrew Chung 16637665
Cyhra Sitchon 16996351
Michael Yoo 16887347
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