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Liz Claiborne Case Study Kathleen Harding-HeberLisa Carbonneau Melanie IsraelJessica Johnston.

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Presentation on theme: "Liz Claiborne Case Study Kathleen Harding-HeberLisa Carbonneau Melanie IsraelJessica Johnston."— Presentation transcript:

1 Liz Claiborne Case Study Kathleen Harding-HeberLisa Carbonneau Melanie IsraelJessica Johnston

2 Liz Claiborne Facts  Founded in 1976  Established by Liz Claiborne, Art Ortenberg, Leonard Boxer and Jerome Chazen  Designing and marketing women’s sportswear  Liz Claiborne Collection, Lizsport, & Lizwear  Liz Claiborne Inc. went public in 1981 with net sales of $116.8 million.  By 1982 added petite sportswear and dress line, women’s shoes and fashion accessories  In 1985 with retail sales surpassing 1.2 billion, was the first company started by a woman to make the fortune 500  By 1987 added men’s sportswear, men’s furnishings, petite dresses, & fragrances  In 1989 both Liz Claiborne and Art Ortenberg retires

3 Liz Claiborne Facts  In 1992 Liz Claiborne Inc. acquires Crazy Horse, Russ, & the Villager  1993 opens retail stores  16 Liz Claiborne retail store  39 First Issue stores  55 outlet stores  In 2000, net sales of $3.1 billion  Claims 2% of the women’s apparel market  Sold in major department and specialty stores  Consists of women’s & men’s fashion apparel and accessories  Liz Claiborne Inc. employs over 7,000 people worldwide  Executive offices, design, sales, marketing and merchandising in New York City  Production, administration, distribution and finance in New Jersey

4 Financial Highlights (In millions)

5 Divisions Liz Claiborne Inc Wholesale Apparel Domestic Wholesale Non-Apparel Retail International

6 Liz Claiborne Brands Axcess Bora Bora Candie'sClaiborne Crazy Horse Curve Dana Buchman Ellen Tracy Elisabeth Emma James First Issue J.H. Collectibles Juicy Couture In addition, Liz Claiborne Inc. holds the exclusive, long-term license to produce and sell men's and women's collections of DKNY® Jeans and DKNY® Active The Company also has the exclusive license to produce women's wear under the Kenneth Cole New York and Reaction Kenneth Cole brand names. Laundry by Shelli Segal Liz Claiborne Lucky Brand MamboMarvellaMexxMonet Monet 2 Realities Sigrid Olsen TrifariVillager

7 Liz Claiborne Brand vs Other Product Percent of Sales 19972002 70%43%

8 Liz Claiborne Current Positioning Liz Claiborne Current Positioning  Stock Quote $34.67 (as of 6/12/03)  105,592,062 shares outstanding (as of 12/31/02)  Company was founded in 1976 & went public on June 1, 1981 at an adjusted price of $1.19 per share. (adjusted for stock splits).  CEO Paul Charron anticipated growth for 2003 = 9-11% increase in sales  LIZ is currently tracking to exceed this prediction, with a 1st quarter reported 20.5% sales increase)

9 Liz Claiborne Product Lines  Axcess – modern women’s & men’s clothing  Bora Bora – modern cosmetics and fragrances  Candie’s – modern cosmetics & fragrances  Claiborne- classic men’s & children’s clothing, accessories, and cosmetics & fragrances  Crazy Horse- classic women’s & men’s clothing & accessories  City DKNY- modern women’s clothing  Curve- modern cosmetics & fragrances  Dana Buchman- classic women’s clothing  DKNY Active/DKNY Jeans – denim women’s & men’s clothing  Elisabeth by Liz Claiborne – classic larger sized women’s clothing & accessories  Ellen Tracey – classic women’s apparel, accessories, cosmetics & fragrances  Emma James – classic women’s apparel  First Issue – classic women’s apparel & accessories  J.H. Collectibles – relaxed women’s apparel

10 Liz Claiborne Product Lines  Juicy Couture – sexy, luxurious, fun – baby apparel, down dog couture yoga, men’s apparel, sleepwear, swim, maternity, outer-ware, denim, & accessories.  Kenneth Cole, New York – modern women’s clothing & accessories  Laundry – modern women’s clothing  Liz Claiborne- classic women’s & children’s clothing, accessories, cosmetics & fragrances.  Lucky Brand – denim women’s, men’s, and children’s clothing, accessories, cosmetics & fragrances.  Mambo- modern cosmetics & fragrances  Marvella – classic accessories  MEXX – modern women’s, men’s, and children’s clothing, accessories, cosmetics & fragrances.  Monet – classic accessories  Monet 2 – classic accessories  Realities – classic cosmetics & fragrances  Sigrid Olsen – relaxed women’s clothing & accessories  Trifari – classic accessories  Villager – classic women’s clothing & accessories

11 Some of Liz Claiborne’s Competitors  Bernard Chaus, Inc.  (including Josephine Chaus) – featuring women’s career clothing. Company was started in 1976, and reported $149.5 million in sales in 2001.  Brands all include the Josehine Chaus name:  Josephine Chaus Collection – career sportswear  Josephine Chaus Sport – casual sportswear  Josephine Chaus Studio- business casual clothing  Josephine Chaus Essentials – better career separates  Constantly growing & expanding into new markets & expanding product lines  recent introduction of Chaus & Co. in 350 JCPenney stores  Constant production & technology improvements – resulting in a recent 10% decrease in annual operating expenses.  *Stock performance - $.98 per share (as of 7/3/03) $1.01 52-week high - $.46 52-week low 27,322,000 outstanding shares as of 5/9/03

12 Liz Claiborne’s Competitors Liz Claiborne’s Competitors  Ann Taylor  featuring “a look for every occasion”, specializing in women’s career clothing with a “design conscious” appeal with “relaxed lifestyle at work and at home”  Brands include two divisions & over 580 stores: Ann Taylor Ann Taylor Loft  Stock performance - $29.62 per share (as of 7/7/03) $17.05 52-week low $30.07 52-week high 556,800 outstanding shares as of 7/7/03

13 Liz Claiborne’s Competitors  VF Corporation  boasts their 102 year history and reputation as the “world’s largest apparel industry – carrying: denim, intimate apparel, knitwear, & specialty apparel  One out of every 4 pairs of jeans sold in the U.S. is a VF brand.”  *VF boasts its’ positioning as having more than 25% of the U.S. jeans market.  Brands include: LeeWranglerRustlerRidersBritanniaJansportEastpack North Face Healthtex Red Kap Vanity Fair VassaretteBestform Lily of France LouBoleroGemmaIntimaCherryNatoriVarianceChicGitanoMaverick Old Axe

14 Liz Claiborne’s Competitors  Jones New York  Jones Apparel Group, Inc. claims its position as a “leader in the apparel and footwear industries”  Product lines including: sportswear, denim, suits, dresses, menswear, shoes, accessories, and costume jewelry  Stock Performance: $30.50 stock price as of 7/6/03 38.25 52-week high - $25.61 52-week low 864,800 outstanding shares as of 7/6/03  Brands Include: Jones New York Evan Picone Rena Rowan Todd Oldham McNaughton Gloria Vanderbilt ErikaEnergieCurrants Nine West Easy Spirit l.e.i Enzo Angiolini Napier Judith Jack Jamie Scot Licensed Brands Include: Lauren B Ralph Lauren Ralph by Ralph Lauren Polo Jeans Company Tommy Hilfiger costume jewelry Givenchy costume jewelry Esprit footwear & accessories

15 Liz Claiborne’s Charitable Contributions “Women’s Work” “Women’s Work”  Liz Claiborne is committed to the prevention domestic violence.  Liz Claiborne appears to be the only company in their category that places emphasis on such a widely supported cause.  Educational programs on-line to end relationship violence & teen dating violence.

16 Liz Claiborne’s Charitable Contributions The Liz Claiborne Foundation  “Reaching out to the communities in which we work and live.”  Provides financial & volunteer assistance to various non-profit organizations (especially those that address “issues of particular concern to women and their families”.)  Job training & micro-enterprise development for disadvantaged women  Serving the “special needs of women who are HIV-positive or who have AIDS”.  Educational & Developmental programs for “underserved children”.  Supporting artistic & cultural institutions that assist the community.  A wide-ranging matching gifts program

17 Marketing Philosophy “Simple, straight forward fashion designed for women who have more important things to think about than what to wear” Lane, Bilafer, Fandel, Gottfried, Hoffman p.490

18 Marketing Philosophy Social Environment  More than 50% of all women in the United States currently work outside the home  Stay-at-home moms have become the exception while the dual income family has become the norm.  Women no longer have the kind of leisure time to shop like they once had and they prefer to accomplish as much as possible in a single shopping excursion  Liz Claiborne, Inc. has designed marketed itself to these women with the concept of convenience in mind.

19 Marketing Philosophy Social Environment  Liz Claiborne Inc. designed mix-and-match outfits to suit individual needs  The shopping experience for the busy lifestyles of working women  Elisabeth” clothing line designed for the forgotten woman: Over 30% of adult women are overweight  Currently, the corporation has product lines designed for plus sizes, petites, suits, sportswear, dresses, accessories, fragrance, and now even a men’s line.  Liz Claiborne Inc.’s portfolio of products is designed to meet the needs of various shapes, sizes, and lifestyles and it is that social versatility that significantly helps to keep the corporation so successful year after year.

20 Women’s Work Women’s Work: helping to fund and assist social welfare programs  A way to give something of value back to the people who have made the company  The program began as a series of community-based, public art projects designed to heighten the awareness of, and encourage positive social change on, issues of particular concern to women and their families  Tackles issues such as domestic violence, homelessness, AIDS, and work-family conflicts  In an effort to heighten the awareness of domestic violence, Liz Claiborne Inc. funds public campaigns  Billboards, posters, brochures, bus signs, public broadcasts, and service announcements  24-hour domestic violence hot line

21 Strengths  Diversified Brands  30 Brand Portfolio  Bridging Modern, Better, and Popular Priced  Original Liz brand strength  43% of total company sales  Positive Corporate Environment  Public Relations Program

22 Weaknesses  Wrong Product & Too Much of it  Clothing industry is seasonal  Designs and production need large lead time  Retirement of Liz Claiborne  Lack of brand recognition with social consciousness  International -Political environment -Trade restrictions -Distribution -Marketability of brand Name product

23 Opportunities & Strategic Alternatives  Utilize Liz Claiborne in Advertising  Like Liz Taylor markets her perfume  Ma Boyle advertises Columbia Sportswear  Further publicize their Public Relations Program  Domestic violence educational hang tags  Extending Brands through licensing  Expand popular priced branded lines  Expand Specialty Stores  International Development  Increase Distribution Centers Overseas  Continue to improve the supply chain  Market Expansion Opportunities  License with Developed International Lines-MEXX -Juicy Couture

24 Any Questions?

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