Presentation on theme: "Liz Claiborne Case Study"— Presentation transcript:
1Liz Claiborne Case Study Kathleen Harding-Heber Lisa CarbonneauMelanie Israel Jessica Johnston
2Liz Claiborne Facts Founded in 1976 Established by Liz Claiborne, Art Ortenberg, Leonard Boxer and Jerome ChazenDesigning and marketing women’s sportswearLiz Claiborne Collection, Lizsport, & LizwearLiz 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 accessoriesIn 1985 with retail sales surpassing 1.2 billion, was the first company started by a woman to make the fortune 500By 1987 added men’s sportswear, men’s furnishings, petite dresses, & fragrancesIn 1989 both Liz Claiborne and Art Ortenberg retires
3Liz Claiborne FactsIn 1992 Liz Claiborne Inc. acquires Crazy Horse, Russ, & the Villager1993 opens retail stores16 Liz Claiborne retail store39 First Issue stores55 outlet storesIn 2000, net sales of $3.1 billionClaims 2% of the women’s apparel marketSold in major department and specialty storesConsists of women’s & men’s fashion apparel and accessoriesLiz Claiborne Inc. employs over 7,000 people worldwideExecutive offices, design, sales, marketing and merchandising in New York CityProduction, administration, distribution and finance in New Jersey
6Liz Claiborne Brands Axcess Bora Bora Candie's Claiborne Crazy Horse CurveDana BuchmanEllen TracyElisabethEmma JamesFirst IssueJ.H. CollectiblesJuicy CoutureLaundry by Shelli SegalLiz ClaiborneLucky BrandMamboMarvellaMexxMonetMonet 2RealitiesSigrid OlsenTrifariVillagerIn 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® ActiveThe Company also has the exclusive license to produce women's wear under the Kenneth Cole New York and Reaction Kenneth Cole brand names.
7Liz Claiborne Brand vs Other Product Percent of Sales 70%43%19972002
8Liz 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 salesLIZ is currently tracking to exceed this prediction, with a 1st quarter reported 20.5% sales increase)
9Liz Claiborne Product Lines Axcess – modern women’s & men’s clothingBora Bora – modern cosmetics and fragrancesCandie’s – modern cosmetics & fragrancesClaiborne- classic men’s & children’s clothing, accessories, and cosmetics & fragrancesCrazy Horse- classic women’s & men’s clothing & accessoriesCity DKNY- modern women’s clothingCurve- modern cosmetics & fragrancesDana Buchman- classic women’s clothingDKNY Active/DKNY Jeans – denim women’s & men’s clothingElisabeth by Liz Claiborne – classic larger sized women’s clothing & accessoriesEllen Tracey – classic women’s apparel, accessories, cosmetics & fragrancesEmma James – classic women’s apparelFirst Issue – classic women’s apparel & accessoriesJ.H. Collectibles – relaxed women’s apparel
10Liz 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 & accessoriesLaundry – modern women’s clothingLiz 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 & fragrancesMarvella – classic accessoriesMEXX – modern women’s, men’s, and children’s clothing, accessories, cosmetics & fragrances.Monet – classic accessoriesMonet 2 – classic accessoriesRealities – classic cosmetics & fragrancesSigrid Olsen – relaxed women’s clothing & accessoriesTrifari – classic accessoriesVillager – classic women’s clothing & accessories
11Some 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 sportswearJosephine Chaus Sport – casual sportswearJosephine Chaus Studio- business casual clothingJosephine Chaus Essentials – better career separatesConstantly growing & expanding into new markets & expanding product linesrecent introduction of Chaus & Co. in 350 JCPenney storesConstant production & technology improvements – resulting in a recent 10% decrease in annual operating expenses.*Stock performance - $.98 per share (as of 7/3/03)$ week high - $ week low27,322,000 outstanding shares as of 5/9/03
12Liz Claiborne’s Competitors Ann Taylorfeaturing “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 LoftStock performance - $29.62 per share (as of 7/7/03)$ week low$ week high556,800 outstanding shares as of 7/7/03
13Liz Claiborne’s Competitors VF Corporationboasts their 102 year history and reputation as the “world’s largest apparel industry – carrying: denim, intimate apparel, knitwear, & specialty apparelOne 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:LeeWranglerRustlerRidersBritanniaChicGitanoMaverickOld AxeGemmaIntimaCherryNatoriVarianceVanity FairVassaretteBestformLily of FranceLouBoleroJansportEastpackNorth FaceHealthtexRed Kap
14Liz Claiborne’s Competitors Jones New YorkJones 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 jewelryStock Performance: $30.50 stock price as of 7/6/03week high - $ week low864,800 outstanding shares as of 7/6/03Brands Include:Licensed Brands Include:Lauren BRalph LaurenRalph by Ralph LaurenPolo Jeans CompanyTommy Hilfiger costume jewelryGivenchy costume jewelryEsprit footwear & accessoriesJones New YorkEvan PiconeRena RowanTodd OldhamMcNaughtonGloria Vanderbiltl.e.iEnzo AngioliniNapierJudith JackJamie ScotErikaEnergieCurrantsNine WestEasy Spirit
15Liz Claiborne’s Charitable Contributions “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.
16Liz 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 womenServing 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
17Marketing 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
18Marketing Philosophy Social Environment More than 50% of all women in the United States currently work outside the homeStay-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 excursionLiz Claiborne, Inc. has designed marketed itself to these women with the concept of convenience in mind.
19Marketing Philosophy Social Environment Liz Claiborne Inc. designed mix-and-match outfits to suit individual needsThe shopping experience for the busy lifestyles of working womenElisabeth” clothing line designed for the forgotten woman: Over 30% of adult women are overweightCurrently, 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.
20Women’s WorkWomen’s Work: helping to fund and assist social welfare programsA way to give something of value back to the people who have made the companyThe 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 familiesTackles issues such as domestic violence, homelessness, AIDS, and work-family conflictsIn an effort to heighten the awareness of domestic violence, Liz Claiborne Inc. funds public campaignsBillboards, posters, brochures, bus signs, public broadcasts, and service announcements24-hour domestic violence hot line
21Strengths Diversified Brands Original Liz brand strength 30 Brand PortfolioBridging Modern, Better, and Popular PricedOriginal Liz brand strength43% of total company salesPositive Corporate EnvironmentPublic Relations Program
22Weaknesses Wrong Product & Too Much of it Retirement of Liz Claiborne Clothing industry is seasonalDesigns and production need large lead timeRetirement of Liz ClaiborneLack of brand recognition with social consciousnessInternational-Political environment-Trade restrictions-Distribution-Marketability of brand Name product
23Opportunities & Strategic Alternatives Utilize Liz Claiborne in AdvertisingLike Liz Taylor markets her perfumeMa Boyle advertises Columbia SportswearFurther publicize their Public Relations ProgramDomestic violence educational hang tagsExtending Brands through licensingExpand popular priced branded linesExpand Specialty StoresInternational DevelopmentIncrease Distribution Centers OverseasContinue to improve the supply chainMarket Expansion OpportunitiesLicense with Developed International Lines-MEXX-Juicy Couture