1. Liz Claiborne Case Study
Kathleen Harding-Heber Lisa Carbonneau
Melanie Israel Jessica 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

6. Liz Claiborne Brands Axcess Bora Bora Candie's Claiborne Crazy Horse
Curve
Dana Buchman
Ellen Tracy
Elisabeth
Emma James
First Issue
J.H. Collectibles
Juicy Couture
Laundry by Shelli Segal
Liz Claiborne
Lucky Brand
Mambo
Marvella
Mexx
Monet
Monet 2
Realities
Sigrid Olsen
Trifari
Villager
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.

7. Liz Claiborne Brand vs Other Product Percent of Sales
70%
43%
1997
2002

8. 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)
$ week high - $ week low
27,322,000 outstanding shares as of 5/9/03

12. 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 Loft
Stock performance - $29.62 per share (as of 7/7/03)
$ week low
$ 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:
Lee
Wrangler
Rustler
Riders
Britannia
Chic
Gitano
Maverick
Old Axe
Gemma
Intima
Cherry
Natori
Variance
Vanity Fair
Vassarette
Bestform
Lily of France
Lou
Bolero
Jansport
Eastpack
North Face
Healthtex
Red Kap

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
week high - $ week low
864,800 outstanding shares as of 7/6/03
Brands Include:
Licensed Brands Include:
Lauren B
Ralph Lauren
Ralph by Ralph Lauren
Polo Jeans Company
Tommy Hilfiger costume jewelry
Givenchy costume jewelry
Esprit footwear & accessories
Jones New York
Evan Picone
Rena Rowan
Todd Oldham
McNaughton
Gloria Vanderbilt
l.e.i
Enzo Angiolini
Napier
Judith Jack
Jamie Scot
Erika
Energie
Currants
Nine West
Easy Spirit

15. Liz 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.

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 Original Liz brand strength
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 Retirement of Liz Claiborne
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?