1.0 IntroductionIn the marketing, it is a common consensus that market segments are separately targeted for the male and female markets and corresponding marketing strategies are adopted. However, nowadays, this type of marketing has encountered challenges because the boundaries between male and female have become increasingly blurred. For example, female wearing men’s clothing have already appeared in the major magazines. Many of the exclusive products that appear to be female are welcomed by male. Many of the iconic symbols that symbolize male today also have a large number of female consumers. The concept of male and female seems to be indistinct, “male products for women” and “female products for men” are becoming consumer trends. Marketing is no longer an independent subdivision of male and female, but it has entered the era of excavation of common needs for male and female.
Value in business markets is the worth in monetary terms of the technical, economic, service, and social benefits a customer company receives in exchange for the price it pays for a market offering (James C et.al, 1998). According to the traditional approach to value creation, value is created or produced through a firm’s operations and then marketed to consumers. The focus is on the production and distribution of units of output and the firm is the creator and distributor value. The process of value creation (operations) is clearly distinguished from that of value distribution (marketing) and from the process of value destruction (consumption). Marketing and operations are seen as separate function, with value creation taking place and then made available in relatively homogeneous packages to the market. (Enzo et al. 2014). Customer Value is the perception of what a product or service is worth to a Customer versus the possible alternatives. Worth means whether the Customer feels s/he or he got benefits and services over what s/he paid. Many customers understand their own requirements but do not necessarily know what fulfilling those requirements is worth to them. To suppliers, this lack of understanding is an opportunity to demonstrate persuasively the value of what they provide and to help customers make smarter purchasing decisions. A small but growing number of suppliers in business markets draw on their knowledge of what customers value, and would value, to gain marketplace advantages over their less knowledgeable competitors. These suppliers have developed what we call customer value models (Humberto, 2015).
2.0 The need to market for both male and female
Applying different segmentation strategies, organizations throughout the world have the ability to target different groups of buyers effectively. Under gender segmentation, the data source is split into male or female. Both male and female have various desire in terms of shopping for various products such as clothing, makeup products, perfumes, shoes and even the habits of food. To conquer this challenge, an organization must have various marketing strategy for both male and female. A female will not purchase an item which is made for a male. Likewise, a male will not buy an item which is made for a female. The segmentation based on the gender is vital for lots of organizations which have portfolios for both male and female (The Economics Times, 2018).
There are various benefits that a company on the male and female. The first benefit is increase sales (Sam, 2017). If a company only cater to a specific group of people such as only target on male, it might lose sales among the potential consumer. But for a company who target their gender market as male and female, it will definitely attract both different gender to come along to the company for purchase the products. Therefore, target male and female will help to increase sales that compared to the company which only target on one side of the gender market. Furthermore, it will also create brand awareness. A company which target on both gender will create brand awareness though their target market. For example, an organization which only target on female consumer, the female consumer of the organization will just tell their female friends about the product of the company but not to male friends. However when a company target both gender, the consumer can widely spread their brand to everyone because everyone are the target consumer of the company.
3.0 Brief History of Calvin Klein
Calvin Klein, one of the top American apparel company that market and designs various kinds of apparels in the globe. The company was founded in 1968 by Calvin Klein himself and buildup the partnership with Barry Schwartz. It is a global lifestyle brand that reveal bold, progressive ideals and aesthetic towards the consumers. The aim of Calvin Clein is inspiring their consumer while using striking designs and provocative imagery to stir up the sense. In the year of 2002, Calvin Klein was merged by Philips-Van Heusen Corporation (PVH), one of the big shots of clothing company. (Calvin Klein, 2018). After it take over by PVH, Italo Zucchelli and Francisco Costa were nominated as the Female’s and Male’s Creative Director for the Calvin Klein Collection respectively. It designs and markets women’s and men’s designer collection apparel and a range of other products that are manufactured and marketed through an extensive network of licensing agreements and other arrangements worldwide (Calvin Klein, 2018). The products of Calvin Klein typically attracted by the young male and female teenagers and establish major proposition of their consumers. Calvin Klein also provides clothing for the children, but it is not as famous as the clothing and accessories of male and female. They focus their products with the groups of middle to high income consumer. Calvin Klein has operated their business in the outlet stores of their company, factory outlets and few department stores that sell the products around the world in over 21 countries. It is widely spread and popular in many cities such as Hong Kong, Mumbai, Singapore, Dubai, Qatar, Bangkok, Seoul, Kuala Lumpur, and Shanghai. The company has its headquarters at Manhatten, New York (Success Story, 2017). In the year of 2017, Calvin Klein retail sales are amounted to about 9.1 billion U.S. dollars worldwide (Statista, 2017) (Refer to appendix 1). It was a very good result of sales as compare to other companies.
4.0 Marketing strategy of Calvin Klein to Male and Female
Calvin Klein has set its eyes on certain high-level celebrities to engage in advertising their brand. Up to now, they have managed to get the various celebrities to jump into their circles and have bestowed upon them the title of Calvin Klein brand ambassadors. For example, Calvin Klein released its most recent campaign, named as MyCalvins in the year of 2015. The company has invited the model Lara Stone and the singer Justin Bieber as their brand ambassadors (Refer to appendix 1). Justin Bieber is one of the famous celebrities that famous around the world. The audience of Justin Bieber are mostly pre-teen and teenage girls. During the campaign, a print campaign poster with Justin Bieber was released and following by the premiere of the video. The campaign video incorporated narratives of self-expression, sexually and pop culture (Ally, 2018) (Refer to appendix 2). Furthermore, the advertisements are aimed either at girls with both a disposable income and a desire to turn their boyfriends into Justin Bieber, or boys who either want to look like Justin Bieber (Morwenna, 2015). Calvin Klein also focus on upgrading the quality and product design for giving the consumer a satisfaction on the demand. For instance, Calvin Klein launched Obsession for her in the Spring 1985, and a year later Obsession for him in 1986. In the year of 1994, Calvin Klein was known in the perfume manufacturer as an innovator when he launched a fragrance, known as CK One. It can be use by both gender, which is unisex (Nu, 2016). The aim is to let both male (boyfriend) and female (girlfriend) can be more convenience by using the same bottle of fragrance and also attract more different gender of consumer.
Segmentation, Targeting and Positioning strategies for Calvin Klein
The demographics of the Calvin Klein is mostly focuses on the male and female consumer between the ages of 15 to 50 and has the desires modern fashion towards the products. Calvin Klein has been called sexy, modern, and minimalistic” as well as a “staple in the closet of the fashion-conscious consumers. Calvin Klein target at medium to high income of the consumer as the product of the Calvin Klein is not the most expensive products in the world (Thecurrentedit, 2016). Psychographic variables of the Calvin Klein’s target market convey the values, attitudes, spending patterns, and cultural influences of the consumer. The teenager consumer of Calvin Klein responded quickly to the scandalous advertisements of the brand whereas for the adult market this could sometimes be a turn off. Teenagers were hungry for attention and wearing the Calvin Klein apparel would make them feel rebellious, hip, and defiant. They are spending patterns may vary but usually they want to purchase what is in style, and Calvin Klein jeans are a very fashionable, sexy, and well-known product. The Calvin Klein brand is distributed within all tiers of department stores including Saks, Bloomingdale’s, Nordstrom, Macy’s, and Dillard’s which increases sales potential for these segments. These levels of distribution reach all levels of consumers. Calvin Klein advertising and marketing are worldwide. Its advertising spans 21 countries and reaches and estimated 98 million people globally. The advertising campaign is found in high fashion magazines including Vogue, Elle, Harper’s Bazaar, and Glamour. These factors prove the consumer awareness and influence of the Calvin Klein brand.
Calvin Klein mostly target its market among the medium and high-income consumers. For the median income of consumers, they are having good education professionals and corporate executive and business owner belongs. They have a great touch with the world and have good income. They can afford to wear costly products. For high income consumer, they always experience those products which provide them prestige and quality products. Due to high income class, they do not consider the price factor. Calvin Klein is the brand that has eared popularity throughout the world and it is symbol of prestige and quality which is demanded by this class. Therefore, Calvin Klein is targeting medium and high-income consumer from the age range both gender will be targeting in both of medium and high consumer.
Calvin Klein aims to provide its customers with trendy and high-quality style products at mid-price. The quality of the products in Calvin Klein reflects the fashion codes leading to the middle and upper-class consumer. Consumers are provided with the latest style of general luxury goods through Calvin Klein and stimulate consumer’s desire to purchase sensible prices at a reasonable price.
5.0 Conclusion and Recommendation
In conclusion, Calvin Klein is a quite successful company that target on the male and female as they have launch many different products and get the attention from the both gender of consumers. Although Calvin Clein done a very well job in the marketing place, but there is still some recommendation that can make it more perfectly. Calvin Klein developing its status as a lifestyle brand, however, for the Calvin Klein Children is currently the weakest of the company’s brand extension. Introducing new designs and new advertising campaigns that appeal more to working or stay at home parents would be a successful strategy to improve the brand’s equity. Calvin Klein Children’s products include those similar to Calvin Klein Women’s and Men’s, to attract those parents who want to dress their children with a similar style to their own. To attract a wider range of parent consumers, the brand must expand their products to include clothing that male and female children living in a household with a lower income would wear. Next, the marketing program currently implemented by Calvin Klein is effective with the loyal consumer base. To reach out a more conservative target market, the brand could advertise certain products in a less controversial way. Calvin Clein has many ways of leveraging its secondary associations. For example, the brand could have emphasized on the fact that is an American brand using the positive associations that come with America and the pride its citizens carry.
Calvin Klein (2018). About Calvin Klein. Online. Available at: https://explore.calvinklein.com/en_SAM/corporate Accessed Date: 10 June 2018
Success Story (2017). Calvin Klein SuccessStory. Online. Available at: https://successstory.com/companies/calvin-klein Accessed Date: 10 June 2018.
Morwenna Ferrier (2015). Justin Bieber for Calvin Klein – but who would buy his pants? Available at: https://www.theguardian.com/fashion/fashion-blog/2015/jan/07/justin-bieber-for-calvin-klein-but-who-would-buy-his-pants Accessed Date: 10 June 2018.
Ally Feinsot (2018). How Calvin Klein’s Digital Marketing Campaigns Attract A New Consumer Market. Elon Journal of Undergraduate Research in Communications, 9, 12.
Nu Thai Hoa Tran, 2016. Perfume consumer behaviors and factors influencing purchasing decisions. Degree program in innovative business services 2016, 5.1.1, 12.
Calvin Klein (2018). About Calvin Klein. Online. Available at: http://www.calvinklein.com/sg/about-us/about-us.html Accessed Date: 10 June 2018.
James C. Anderson & James A. Narus (1998). Online. Available at: https://hbr.org/1998/11/business-marketing-understand-what-customers-value Accessed Date: 6 June 2018.
Humberto Torres (2015). Understand What Customer Value. Online. Available at: https://www.linkedin.com/pulse/understand-what-customers-value-humberto-torres Accessed Date: 6 June 2018.
The Economics Times (2018). Definition of gender segmentation. Online. Available at: https://economictimes.indiatimes.com/definition/gender-segmentation Accessed Date: 7 June 2018.
Sam Ashe-Edmund (2017). The advantage of marketing segmentation. Online. Available at: https://yourbusiness.azcentral.com/advantages-marketing-segmentation-2858.html Accessed Date: 7 June 2018.
Thecurrentedit (2016). Calvin Klein: Who is the target audience. Online. Available at: https://thecurrentedit.wordpress.com/2016/03/31/calvin-klein-who-is-the-target-audience/ Accessed Date: 11 June 2018.
Appendix 1: Statistics of Calvin Klein retail sales worldwide in 2017, by brand (in billion U.S. dollars).
Appendix 2: Poster of Calvin Klein that endorse by Justin Bieber and Lara Stone in MyCalvins campaign.
Appendix 3: Calvin Klein’s video advertisement which broadcast during the MyCalvins campaign.
Appendix 4: The Calvin Klein’s fragrances which target for male and female.
Appendix 5: The fragrances of Calvin Klein which target in unisex consumer.