TABLE OF CONTENTS

BRAND INVENTORY........................................................................................................................2
COMPANY HISTORY AND BACKGROUND................................................................................2
OWNERSHIP....................................................................................................................................3
OBJECTIVE OF BRAND AUDIT....................................................................................................3
PRODUCT RELATED ATTRIBUTES..............................................................................................3
BRAND PORTFOLIO.......................................................................................................................4
COMMUNICATION, PRICING AND DISTRIBUTION.................................................................6
BRAND EXPLORATORY..................................................................................................................8
CUSTOMER KNOWLEDGE...........................................................................................................8
SOURCES OF BRAND EQUITY.....................................................................................................8
CUSTOMER BASED BRAND EQUITY PYRAMID......................................................................9
SALIENCE DIMENSIONS..........................................................................................................9
PERFORMANCE DIMENSIONS................................................................................................9
JUDGEMENTS DIMENSIONS..................................................................................................10
IMAGERY DIMENSIONS..........................................................................................................10
FEELINGS DIMENSIONS.........................................................................................................10
RESONANCE DIMENSIONS....................................................................................................10
THREATS TO BRAND EQUITY...................................................................................................10
RECOMMENDATIONS...................................................................................................................11
REFERENCES..................................................................................................................................12

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BRAND INVENTORY
COMPANY HISTORY AND BACKGROUND
Following his graduation from the High School of Art and Design, Calvin Klein studied
apparel design at Manhattans Fashion Institute of Technology. Inspired by the fresh and
unpretentious style of New Yorks urban youth, Klein was ready to launch his own clothing
company in 1968. With financial help from a childhood friend Klein hired a seamstress to
make a handful of his elegant womans coats and dresses.
This merchandise was seen in a dingy showroom by a merchandise manager from Bonwit
Teller. The department store purchased $50,000 worth of apparel and displayed samples in
eight windows, kicking of Kleins career. By 1970, Calvin Klein obtained a trademark for his
infamous CK logo. Soon thereafter, Klein received the Coty Award, a prestigious design
award, three consecutive years in a row in 1973, 1974, and 1975. In addition, he added
numerous product lines and categories and acquired models such as Brooke Shields and Mark
Wahlberg. These models careers took off after their Calvin Klein debut because the brand
has received much recognition over the years for its sleek, classic, and minimal look. By
2003 Phillips-Van Heusen purchased the company where Calvin Klein remained active
within the company as a head designer. The company continues to offer a variety of products
to a wide target market.
The Calvin Klein brand, owned by Phillips-Van Heusen Corporation, covers a wide variety
of product classifications. Designer Calvin Klein made his debut at a small New York
showroom with coats and dresses for women in 1968. Kleins first designs represented a city
chic style of a young woman living and working in New York. These designs were noticed in
the apparel industry, and a successful brand name was founded in that small showroom. The
next product line from Calvin Klein was womens sportswear, which attracted the interests of
popular fashion magazines Bazaar and Vogue. Klein has included sportswear for women in
his seasonal lines since the original line was launched.
The trademark product of the Calvin Klein brand came out in 1970 and has been the most
popular product in Kleins many retail locations. Kleins denim jeans are the single product
that launched his status as a high-end designer in the apparel industry. Within the next ten
years, Calvin Klein had expanded into the menswear and underwear markets, designing
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boxers and briefs as well as womens intimates. His menswear line began with boxers and
briefs, and eventually developed into high-end suits, button down dress shirts, accessories,
and footwear. By the early 90s, he had already designed a swimwear line, launched two
fragrances for men and women, and expanded into the accessories, eyewear, and footwear
markets.
The next step for Klein was to manufacture an affordable brand under the name CK
including denim, logo T-shirts, fragrances, and sportswear for men and women at a more
affordable price. Calvin Klein later followed Ralph Laurens example by creating a home
furnishings line. His most recent item is a makeup line sold exclusively in department stores.
It is evident that Calvin Klein saw that product line extension was necessary for company
success as well as a means to surpass his competition.
OWNERSHIP
PVH Corp., one of the worlds largest apparel companies, owns and markets the iconic
Calvin Klein and Tommy Hilfiger brands worldwide. It is the worlds largest shirt and
neckwear company and markets a variety of goods under its own brands, Van Heusen, Calvin
Klein, Tommy Hilfiger, IZOD, ARROW, Warners and Olga, and its licensed brands,
including Speedo, Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction,
MICHAEL Michael Kors, Sean John, Chaps, Donald J. Trump Signature Collection, Joseph
Abboud, DKNY, Ike Behar and John Varvatos.
OBJECTIVE OF BRAND AUDIT
The purpose of this brand audit is to evaluate the health of the company, including its brand
equity in the past, present and future. Calvin Klein Inc. has developed from an individual
designer to a success story purchased by industry leader, Phillips-Van Heusen. This report is
responsible for evaluating the Calvin Klein brands and comparing how the company is doing
relative to other brands in its industry and to offer recommendations for improvement or
possibilities at brand extension.
PRODUCT RELATED ATTRIBUTES
Calvin Klein has many different types of products to offer and all this products have different
type of attributes, the only thing which is common between them is that they make you feel
rich. Following is the list of products and there attributes:

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1)
2)
3)
4)
5)

Calvin Klein Platinum-Modern, Clean, Sexy.

Calvin Klein Jeans-The original designer jeans, provocative, youthful.
Calvin Klein Underwear-Modern, body conscious, sensuous.
Calvin Klein Watches and Jewellery-Minimal, modern, precise.
Calvin Klein Fragrances-Intriguing, mysterious, evocative.

BRAND PORTFOLIO
Calvin Klein is owned by Phillip Van Heusen which is one of the most prominent name in
fashion industry and there are several other brands like Tommy Hilfiger that are owned by
Van Heusen .There are different brands which are the part of Calvin Klein they are as
follows:

Calvin Klein Collection The halo brand, under which mens and womens highend designer apparel and accessories, as well as items for the home, are sold.
Representing pure, refined luxury, distribution is through the wholesale channel
across the globe and through flagship stores in Asia and their own Calvin Klein
Collection retail flagship store on Madison Avenue in New York City.

Calvin Klein (platinum label) The "bridge" brand, formerly known as ck Calvin
Klein, was rebranded in 2013 in order to unify the Calvin Klein brands under one
umbrella. This line offers modern, sophisticated, fashionable items including apparel
and accessories, which are sold in the wholesale channel through specialty and
department stores in various regions, as well as in free-standing stores in Asia.

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Calvin Klein (white label) The white label better brand includes offerings such
as mens sportswear and dress furnishings, mens and womens outerwear, fragrance,
accessories, footwear, performance apparel, womens sportswear, dresses, suits and
handbags and items for the home. Distribution is primarily in North America through
department stores and free-standing stores.

Calvin Klein Jeans Offerings under this label include mens and womens jeans
and related apparel, which are distributed worldwide, and denim accessories, which
are distributed in Europe and Asia. With roots in denim, it is the casual expression of
the Calvin Klein brand and is famous for its unique details and innovative treatments.

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Calvin Klein Underwear As the worlds leading designer underwear brand for men
and women, Calvin Klein Underwear is known across the globe for sexy, cutting-edge
products and marketing campaigns, consistently delivering innovative designs with
superior fit and quality. Offerings under this label include mens and womens
underwear, sleepwear and loungewear, which are distributed worldwide.

COMMUNICATION, PRICING AND DISTRIBUTION

Calvin Klein communicates with its consumers by launching different types of commercials
and advertisements. They also endorse celebrities and models like Miranda Kerr to make it
more attractive. Apart from that Calvin Klein now devotes nearly a quarter of its marketing
budget to digital, with social media Influencers playing an increasingly important role. Calvin
Klein on 17th February 2014 came up with Show yours. #mycalvins campaign for its Calvin
Klein Underwear division, which is first kind of social media advertisement by any garment
company.
Calvin Klein INC has different type of pricing strategies for its wide range of products. The
strategies are as follows

Penetration Pricing-Penetration pricing is a marketing strategy used by Calvin Klein in

order to attract customers to a new product or service. Penetration pricing is based on the
practice of offering a low price for a new product or service during its initial offering in
order to attract customers away from competitors. The reasoning behind this strategy is
that customers will buy and become aware of the new product due to its lower price in the
marketplace relative to the rivals.
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Penetration pricing can be a really successful marketing strategy when applied correctly.
It can often increase both market share and the sales volume. Additionally, the high sales
volume can also lead to lower production costs and higher inventory turnover, both of
which are positive effect for any firm with fixed overhead. The chief disadvantage,
however, is that the increase in sales volume may not necessarily lead to a profit if prices
are kept too low. As well, if the price is only an introductory campaign, customers may

leave the brand once prices begin to rise to levels more in line with rivals
Competition pricing-This type of pricing means setting the price of a product or service
based on what the competition is charging. Competitive pricing is used more often by
businesses selling similar products, since services can vary from business to business
while the attributes of a product remain similar. This type of pricing strategy is generally
used once a price for a product or service has reached a level of equilibrium, which often
occurs when a product has been on the market for a long time and there are many
substitutes for the product. For example: There are many substitutes of Calvin Klein in
market like Zara, Tommy, gap, Louis Phillip etc so Calvin Klein decides the price of its

products according to competitors pricing of the same product.

Product Line Pricing-This is a pricing strategy which is used to sell different products in
the same product range at different price points based on features or benefits. This type of
pricing is used when a primary product is offered with different features or benefits,
essentially creating multiple "different" products or services. For example: Calvin Klein
has different product lime like Calvin Klein platinum label and Calvin Klein white label
both are into same product but are priced differently due to attributes and features of the
product. Platinum label is the premium product so its cost is high.

Calvin Kleins products are distributed through wholesale partners and through over 2,700
retail locations (including company operated, licensee and franchisee stores) across the
world. Within the Calvin Klein brand portfolio, Calvin Klein Collection acts as a halo brand
and offers inspiration to the other brands, which include Calvin Klein (platinum label), which
is bridge line, Calvin Klein (white label), which is better line, Calvin Klein
Underwear and Calvin Klein Jeans.
Calvin Klein products are available through wholesale customers (third party retailers,
distributors and pure play e-tailors which sell products in brick and mortar stores and mobile
and online e-commerce sites), at own company-operated retail locations across the world, and
online through mobile and e-commerce websites in the United States, Europe, Brazil and
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China. In 2015(last quarter), it is expect to launch directly operated e-commerce sites in

Canada, Hong Kong and Macau, Calvin Klein plans to operate e-commerce sites in 20
markets by the end of 2016. Additionally, in certain markets, products are distributed through
licensees (including joint ventures), franchisees and distributors.

BRAND EXPLORATORY
CUSTOMER KNOWLEDGE
Consumers have the conceived notion that Calvin Klein produces quality lasting products in
all departments; they are willing to invest their money in the name repetitively. The ongoing
trust and loyalty of the consumers allow the brand to stay alive. Not only are consumers
trusting of the Calvin Klein name, they feel confident in the products. In particular, the
Calvin Klein clothing makes a man or woman feel sexy yet sophisticated, daring and bold,
and often times rich. These are all good feelings that many people desire to feel. Apart from
that consumers think that Calvin Klein is a brand that adds value to their personality as it is
considered to be one of the premium brands in garments and fashion industry.
SOURCES OF BRAND EQUITY
Calvin Kleins brand was named Calvin Klein after himself. CK is the famous symbol of
the brand. Although Calvin Klein does not have a character associated with the brand, models
such as Mark Wahlberg, Brooke Shields, Kate Moss, and Eva Mendes are often associated
with Calvin Klein advertisements. There are several slogans affiliated with the brand
including Between love and madness lies obsession, and for Calvin Klein Jeans, Nothing
comes between me and my Calvins
Calvin Klein turned all its brand elements into sources of brand equity to evoke brand
awareness, interest, and loyalty because they are well known names, symbols, and categories
on a global level.

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CUSTOMER BASED BRAND EQUITY PYRAMID

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So p histicate d & tou g h p rod ucts, H ig h p rice.
S A L IE N C E - A p parels and Accesorie s, S tron g visu al id e ntity.

SALIENCE DIMENSIONS
1. Recall
a. Good presence on social networking sites.
b. By seeing the logo of Calvin Klein.
2. Recognition
a. Whenever consumer will think of buying designer clothes or accessories Calvin
Klein will be considered.
PERFORMANCE DIMENSIONS
1. Primary Characteristics and Supplementary Features
a. Classic designs
b. Excellent quality
c. Customized products
d. Variety in products
e. Tough products
JUDGEMENTS DIMENSIONS
1. Brand Quality
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a. High end products

b. Satisfaction for high price paid.
2. Brand Credibility
a. Brand for youngsters with quality and style
b. Costly brand
3. Brand Consideration
a. Consumer will always take into consideration brand Calvin Klein whenever
they are willing to buy designer products or high end products.
IMAGERY DIMENSIONS
1. By looking at the brand, product and its advertising campaigns consumer will be think
having the product; it will make them feel different.
2. The rich heritage and brand logo will lead the consumers to purchase the products of
the brand.
3. The luxury connected to Calvin Klein will lead the customers to pay such higher
prices.
FEELINGS DIMENSIONS
1. The sophisticated as well as tough image related to different types of product of the
brand Calvin Klein will lead the customers to feel good about the brand.
2. Though Calvin Klein is also a huge brand it is also a sub brand of Phillip Van Heusen
which is also a well known brand in the market.
RESONANCE DIMENSIONS
1. Once a CK consumer will always be a CK consumer, as he becomes the fan of the
designs and materials of CK products.
2. The consumers will have a sense of community due to online presence of the brand
e.g.: #mycalvins initiative.
THREATS TO BRAND EQUITY
Though Calvin Klein is owned by Phillip Van Heusen one of the main threat to Calvin Klein
brand is Van Heusen itself as it is also the major competitor of Calvin Klein in apparel
industry apart from that Tommy Hilfiger which is another brand of Van Heusen which plays
as a competitor of Calvin Klein in watch and accessories segment. Both this brands are
famous and thus can be a threat to brand equity of Calvin Klein.

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RECOMMENDATIONS
Calvin Klein has been successful for over 40 years, including when Phillips-Van Heusen
purchased the company in 2003. While Calvin Klein follows current trends, the company is
still developing its status as a lifestyle brand. Calvin Klein Childrens is currently the weakest
of the companys many brand extensions. To strengthen the company as a whole, the
promotional strategies of the childrens wear line need to be strengthened also.
Since Calvin Klein brands started with a line of womens coats and dresses, Klein continued
to expand on the original brand for the next 40 years. This included menswear, sportswear,
denim, and CK Calvin Klein all before 1990. The popular fitted and trademarked jeans that
branded his name birthed the Denim Line. Within the next 10 years Calvin Klein brands
expanded to home furnishings, accessories, intimates, and the most unrecognized childrens
wear. Recommendations for further brand extension would be in the childrens wear segment.
The brand name that is still lacking in profit is Calvin Klein Childrens. 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 brands equity. Calvin Klein Childrens
products include those similar to Calvin Klein Womens and Mens, to attract those parents
who want to dress their children with a similar style to their own. This includes designer
denim, polo t-shirts, and accessories. To attract a wider range of parent consumers, the brand
must expand their products to include clothing that children living in a household with a
lower income would wear. The brand CK in Calvin Klein womens is a more affordable,
casual brand made to attract a younger but still fashionable consumer. This brand should be
extended to include Childrens wear, making it more affordable for the parents and more
appropriate for children.

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