CK在中国的营销策略分析marketing strategy on Calvin Klein
卡尔文在美国是一个非常知名的品牌，它给人的感觉是时尚且纯粹。它的品牌定位是非常时尚的年轻的办公室女性，在2012年，该品牌有了更为明显的发展。
高级CEO兼首席执行官卡尔文克莱恩本周三时表示,虽然卡尔文克莱恩品牌在欧洲表现一般,而且中国经济发展发展速度在减缓。然而在亚太地区的销售额推动公司收入增加。许多关于中国的经济发展减缓评论不断蔓延开，但是我们并没有如此担忧。自2012年以来每一年的增长率为9%，不能够说这是在急剧下降。就目前的情况而言，今天的卡尔文克莱恩在中国已经开发了超过200家独立店铺，包括自营、衬衫专的牛仔系列专卖店卖店、CK店铺以及上海的卡尔文克莱恩收藏店铺。除此之外，还有许多由第三方来管理的店铺。今年卡尔文克莱恩预期在中国收益达到35亿。在ck的全球环境之中，中国的市场表现还是非常好的。另外在上海，北京和其它一些主要城市，CK品牌也在急速的扩张，并且开始向第三城市延伸。
在中国，除了卡尔文克莱恩是个一个历史悠久且极高品质的品牌外，他在中国取得巨大的成功。在中国市场，CK采取的是细分的市场策略。在本章之中我们将要回顾CK在中国市场成功的市场策略及可能存在的风险分析。
The CEO and chairman of Calvin Klein, Tom Murry states Wednesday, though Calvin Klein in Europe shows peer performance, and the economy of china is alleged to develop slowly, however, the sales in Asia area push the company to attain buildup. Many comments about china economy slowdown spread, but we don&t feel much. Ever year annual growth at average 9% (Leyang, 2012) could not be said to be decline largely.
In the present situation, Calvin Klein today has opened more than 200 independent stores in mainland of china including the independent Calvin Klein jeans store, underwear store, ck Calvin Klein store and Calvin Klein Collection store in shanghai. And besides, there are a lot of stores within store managed by the third part. This year, the sales of Calvin Klein Company in china are expected to be approximately $35 million. （, 2011）Among the global business of Calvin Klein, the part of china behaves excellently. Besides shanghai, Beijing and other major cities, CK has started to expand to the second-tier cities and third-tier cities.
Calvin Klein has gained so great achievements in china, except for its long-history brand and hig it has its own great specific market strategy toward china. In this chapter, we shall review the successful marketing strategy of CK in china and its possible risks.
China has the largest population in the world. Its economy shows a fierce increase these years. More and more millionaires turn up. Within the traditional consuming perspective changing, the majority of the people eager to expense topper goods to make them distinguished. Therefore, AS is shown, Chinese people have great potential to purchase and the market life will be a long cycle.
No matter what company decides to enter a market, the mode of how to access to the market is very essential. For a company, there are many ways to choose. Generally, five modes (Kotler, 2011) are available. They includes the following five ones：indirect exporting, direct exporting, licensing, joint ventures and direct investment. As to Calvin Klein Company, the primary mode is direct exporting and the additional way is e-commerce fashion. Direct exporting (MBAlib, 2010) refers to the exporting in which the company sells products directly to the customers without a middle man. It is composed of four ways with setting department exporting to foreign countries, foreign dealers, establishing a foreign office, founding a subsidiary corporation for marketing in outside. Calvin Klein has over 200 (, 2011) in many cities, Calvin Klein has plenty of commercial agents who are able to help to sell its products. Calvin Klein just utilize setting department in china. It accord with the direct exporting mode. Through this method, CK could precisely grasp the market trend of china, knowing about the specific demand of Chinese people and to design more suitable for Chinese consumers.
The other merits are that the enterprise can be aware of the product distribution in time and be able to conquer price (Kotler, 2011). Especially in recent years, sales resorting to the network increasingly come to be a kind of overwhelming pattern. CNNIC (, 2012) tell us that until 1 January 2012, the population of Chinese internet users has break through 513 million. And found that in 2011, the scale of people who buying online reached 194 million. Consequently, to trade online in china is also a wonderful process when entering into china market.
Calvin Klein runs so many sorts including underwear, CK jeans sunglasses, perfume and so on. In America Calvin Klein design its product in simplest, comfortable and elegant style to draw many American&s attention, especially for the office ladies&. Calvin Klein expressed that he want to pursue the dignity of human nature, and this is based on the common value of human beings: love, eternity and sharing. So it happens to have the same view with the America people.
Now, here in china, Calvin Klein still try to position target population. Along with so many university students turning into the main force of prominent intellectuals---that is the so-called white-collar, they promote the consumption of society. And the Chinese reforming and opening gives a number of merchants& chances to gain profits.& That is to say, the Chinese clients thoroughly are divided into two integral parts. First one is urba they have got higher education, earning money with knowledge and wishing to feast on the luxury goods for enhancing life quality. Another crowd is the rice men who seek some particular things to show their status, their taste and their difference. The two groups can guarantee the sales of CK and open up the latent market.
The core of a great brand is a great product. The products are the material carrier. A perfect product strategy is very significant to a company.
When supplying their products and services in the market, the salesman should take the five product levels into consideration. The five ones consist of the consumer value hierarchy. The fundamental level is core benefit. It means what the consumers really buy, such as the break and sleep in the taverns. Second one is basic product which is the something transferred from the core benefit such as a TV and a bed. Third one is the expected product, that is to say that some service or quality beyond the imagination of clients such as a clean bed, new desk lamp and so on. Fourth one is augmented product. This makes clients comfortable and surprised. For example, it is still the same room that the customer lives in before. The last but not the least is the potential product. Finding and dig the potential demand are its meanings.
Defining the category of Calvin Klein, it belongs to the specialty goods. CK possesses the unique feature and brand recognition. People who wear or owe it give persons a sense that this man is so rich and so fashionable. Of course, in china CK still plays this kind of role to differentiate the person on it with others. And its brand implication conforms to many Chinese people. Since compared with the rest countries& people, Chinese show more care and sense to brand. A research conveys that 71% of Chinese consumers view the brand a key factor of trading up. When we talk about the content of Calvin Klein, we know that CK has diverse products. In generally, CK has three main brands. In addition to Calvin Klein Collection, CK Calvin Klein and Calvin Klein jeans, socks, underwear, perfume, pajamas and so on. Each of them represents CK style- the unparalleled manner.
Different from American products, in Chinese markets Calvin Klein prevailingly sell its second line products. Many Chinese CK stores sell primarily the jeans, perfumes and underwear. These second line products provide better chance for Chinese people to buy it. Thus Chinese people not only can afford it, but also can feel good.
There is no doubt that Calvin Klein takes the differentiation tactics. This strategy differs from others. It depends on its form and feature to achieve its value. In order to adjust to the size and mores of Chinese people, Calvin Klein makes allowance for the love of local persons. The suit-cuts are better for the size of the Asia. The fabric material composition will also adapt to the local climate. Though Calvin Klein for a long time requires consistency in keeping brand image, it still compromise to its Asia influence. For instance, while they design the products, they would use the red color symbolizing lucky and apply the silk and cashmere produced by Asia district. Therefore, we can conclude that Calvin Klein&s succe it is the result of many careful preparations.
Price is the element which can bring about revenue. Does the price never change? The answer is not. For the past few years, the practice of making price changes a lot. Different countries and different culture will decide different prices levels. For Chinese consumers, despite the increase income, people still cannot buy such high price goods. Hence Calvin Klein fixes the price in a middle level. And the company should set their prices according to the market level and products demands.
Normally, the price of some Calvin Klein products is as follows. For instance, a watch of CK sells in china ￥1400, and its well-known CK one summer is at the price of about ￥500. In addition to these things, its Calvin Klein jeans because of its second line identity sells ￥1300. The faddish sunglasses is sold ￥, 2010). It stands to reason that there are also amount of things created by CK selling at china area such as Shanghai, Beijing, Shenzhen and some places else. Nevertheless, the other places& situation is ultimately different. In Hong Kong and American mainland, the selling price is very high. For example, the watch is sold $2500 it is because maybe its product is CK&s first line and topper products.
Calvin Klein makes the price depending on the consumer psychology and the reference price. Many economists suppose that the customers are the accepters of price. To their surprise, the sales men found that the clients will often deal with price information positively. They would gather information from the previous shopping experience, the formal channel of information such as advertisement, selling call and pamphlet, the informal channel of friends and parents& advices and information online. Maybe the price of CK in china is still high. The high quality and the limits of quantity make the clients who want to buy those limited editions to manifest its social codes fascinated. Yes, high price is the symbol of Calvin K a new market and new consumers ask for the company to make decisions with reference price. To realize the biggest market share, Calvin Klein had better to list price in a relative middle level. This way can satisfy the Chinese people two needs, the desire to have luxury consumption and as well can afford it. The technology helps price reduction a lot. Nowadays, many websites about group buying prevails among many Chinese internet users. The idea of rebate can help the buyers save much money at the same time enlarging the influence of the brand.
No matter how successful the company is, when entering into a new market, it is very important to fix the fittest price, change it along with the alteration of environment and analysis the psychology of consumers. After these were prepared necessarily, maybe the company can achieve its goal in the new market and obtain a high customers& perceived value of its products and services.&
The task of marketing channel is to transfer the products from the manufacturers into consumers. Today, the majority of companies adopt the multi channel marketing way. Disney sells its DVD through five methods such as Blockbuster, the Disney store, tailors online, stores and directory distributors of Disney or someone else. These different channels provide the biggest market coverage for Disney and could sell the video products with variable price. It is the similar way with those big companies like Disney.
As we have discussed in the first part, the ways that Calvin Klein enters into the china market are direct exporting, licensing and global network sales. The typical method that direct exporting way of Calvin Klein is that CK has many independent stores to sell its products. And its channel mode is often called B2B (Kotler, 2011) mode. It is because of that many big customers love to buy things in the clean and comfortable shops. The industry manufacturer can utilize its salesman to sell its products and set up many stores to distribute them. Or these producers sell products to industry distributors, and then let the distributors to sell the products. And the last way is that maybe the representative man of the industry or the market sales affiliated agency could sell products directly to the consumers. Thus, the zero level, the first level and the second level marketing channel is often seen.
Calvin Klein makes the price depending on the consumer psychology and the reference price. Many economists suppose that the customers are the accepters of price. To their surprise, the sales men found that the clients will often deal with price information positively. They would gather information from the previous shopping experience, the formal channel of information such as advertisement, selling call and pamphlet, the informal channel of friends and parents& advices and information online. Maybe the price of CK in china is still high. The high quality and the limits of quantity make the clients who want to buy those limited editions to manifest its social codes fascinated. Yes, high price is the symbol of Calvin K a new market and new consumers ask for the company to make decisions with reference price. To realize the biggest market share, Calvin Klein had better to list price in a relative middle level. This way can satisfy the Chinese people two needs, the desire to have luxury consumption and as well can afford it. The technology helps price reduction a lot. Nowadays, many websites about group buying prevails among many Chinese internet users. The idea of rebate can help the buyers save much money at the same time enlarging the influence of the brand.
No matter how successful the company is, when entering into a new market, it is very important to fix the fittest price, change it along with the alteration of environment and analysis the psychology of consumers. After these were prepared necessarily, maybe the company can achieve its goal in the new market and obtain a high customers& perceived value of its products and services.&
The task of marketing channel is to transfer the products from the manufacturers into consumers. Today, the majority of companies adopt the multi channel marketing way. Disney sells its DVD through five methods such as Blockbuster, the Disney store, tailors online, stores and directory distributors of Disney or someone else. These different channels provide the biggest market coverage for Disney and could sell the video products with variable price. It is the similar way with those big companies like Disney.
As we have discussed in the first part, the ways that Calvin Klein enters into the china market are direct exporting, licensing and global network sales. The typical method that direct exporting way of Calvin Klein is that CK has many independent stores to sell its products. And its channel mode is often called B2B (Kotler, 2011) mode. It is because of that many big customers love to buy things in the clean and comfortable shops. The industry manufacturer can utilize its salesman to sell its products and set up many stores to distribute them. Or these producers sell products to industry distributors, and then let the distributors to sell the products. And the last way is that maybe the representative man of the industry or the market sales affiliated agency could sell products directly to the consumers. Thus, the zero level, the first level and the second level marketing channel is often seen.
Now, it is the time to see which ways Calvin Klein use to propagandize the products. First the advertisements are the key part of the CK. People often shocked by its daring and random advertising slogan: There is nothing between Calvin and me. Besides its simple and clear style, CK has its most famous characteristic is sexy. Calvin Klein is good at promote the goods resorting to the power of sex, and its advertisements are often criticized by the public. Even someone said that the dress is the products of Calvin Klein, and the sex is the brand recognition by advertising hint. Moreover, CK enjoys make the huge outdoor poster in every metropolitan building to show its sexy and enticing ads. Certainly, besides the ads using sex for selling point, the designer love to think out many creative marketing and advertising, and as well to be the sign of brand success.
Similarly, the impact of fashion conference also cannot be ignored. Every New York fashion week and Milan fashion week CK undoubtedly turns up and displays its splendid works. During that time, the major consumers ---the super stars will present and can attract the extensive presses. Thus, these sorts of fashion occasion and events are definitely the best chance to make the brand become the publicity. There is a very successful case (, 2007) done by CK. Provided that you know the fashion things a little, you would know a case named the whole world was simulated by a underwear for twenty-five years. Twenty-five years ago, Calvin Klein open the trend that introducing to design the brand underwear. It is the first time bringing the things that never are on a sign to the fashion summit and lead the global trend. Until now, men would feel ashamed without a underwear no CK brand on it. At that fashion week, a model with strong and perfect muscle and stature, his swart skin give the audience a felling of health and beauty.
Backing into china, though few advertisements in air, the word of mouth marketing is very useful. The high quality and comfortable sphere make the consumers want to go back to the shop. And for the spokesman, CK select the famous and having healthy image star-Liu ye. Liu ye (,2011) has a lot of fans in china, and in the view of most presses, he is a man who is so fashion and so elegant. So, he is the perfect man of representing the CK in china area.
Bear this in mind that the creative ads, the good and successful public relation and the great reputation are able to make the company change wonderful.
Nothing is always well-off, especially in a new region and new consumers. In the previous years, Google, the up rising star, retreat from the mainland of china (,2010). It is the result of the political reason fundamentally. In china, though the china government is trying to democratize piece by piece. To maintain social stability, the government still never permits the opinion on public affairs which may raise snakes and some truths to be known by its citizens. And its bad service is also a big problem. Here it is only Google, the biggest supermarket chain Wal-Mart still face the some troubles towards the weather and large area lands. The different climates of china cause some difficulties for Wal-Mart.
As a matter of course, Calvin Klein also would meet such dilemmas because of china&s different political, economical, technological and social environments. The best direction to analysis the possible risks are from PEST ((Kotler, 2011) four aspects of china market.
Political environment：china is a country which is governed by a single party. The Chinese community party controls nearly the whole china. So the policies are very important. Many economical affairs are overly influenced by the policies, and sometimes you must compromise to government, such as the Google case. The legal environment is also a black hole. For thousands years, Chinese citizens all are under the administration by some entitled persons. Often, the punishment or the reward is all determined by the king or someone. You want to depend on the court in china
maybe it is not a good way. Furthermore, the relationship between countries is a main influencing factor. When the relationship between china and American government turns bad, the business of Calvin Klein would decline and what&s worse, maybe it shall lose its china market.
Having said all above, if Calvin Klein wishes to develop in china for a long time, it should conform to the Chinese policies even sometimes this compromise is not accordance with the concept of the company. And the loose law environment also needs Calvin Klein to work more prudently. One day if Calvin Klein wishes to be listed in china, its matters needing intention are so many. So the best way for Calvin Klein is to acquire the policies of china and think over how to reply it.
Economical environment: in the previous part, the great advantages have been discussed. It looks like that china have so many benefits and we do not need worry its economy. Nevertheless, we must keep it in mind that china is a country which economy regime is socialist marketing economy. It is a socialist state. The free spectrum of economy is less than A many economical things still are affected by some powers. Most investment in china is done by government, and the companies with the highest GDP are all the national owned companies.
Towards the conception of citizens& consumption, though it changes a lot, the native people are able to b Calvin Klein is too expensive to them. Fixing the price is a risky process, with the other fashion brands and the Chinese local brands arise, it is likely that more and more Chinese consumers would buy other brands. It is a big challenge when facing it. In addition to these things, the huge discrepancy of the east and the west, the south and the north is possibly a development chance and a trouble. The china government had tried many ways to promote the economy of the laggard regions. After waiting these places& development, a big chance is that some other companies will occupy these market shares. Whereas, if Calvin Klein Company set stores in those place, losses are inevitable. The last is along with the exchange rate of china ascends continually. The company must know how to sell its products.
The technology environment: the technology of china cannot reach the level of American&s. And into a new market, facing a crowd of new customers, Calvin Klein must adjust its management methods and the service based on the new environment. The risks are maybe the local employees will not be accustomed to the American style. The communication way of china and American are also different. The American loves to express their feelings freely and directly. In Asia area, they convey their views more politely and indirectly. So maybe the communication barrier would be another difficulty.& As the Google case, the internet environment is also not free. In the event of the great expansion afterwards, Calvin Klein Company intends to open the ma the material and the producing equipments might not match the qualifications. To sum up, the deficient free of economy, the imperfect management way and system and the unqualified material are all risky things in the future development of CK in china.
China has the largest population in the world. Its constituent parts are multitudinous. There are fifth-six nations with different customs and different tastes. Some nations have taboos such as the pig for the Hui nationality and so on. So when designing the products, Calvin Klein designers should try to avoid this. The continual increasing educational level would imply different meaning for different generations. Much attention is showed by the younger generation. W they are not the majority of buying CK products. The 30s and the 40s are the group people who have the enough economic strength. They are also the population who are very likely to these products. If Calvin Klein would like to realize localization, the key way is to take the styles and tastes of these middle age people.
Different from many countries, in china women hold the money cards. So the female customers should be the main propaganda target to a family. And consumption concept is not the same with American people, American but the Chinese people love to save their money in bank. So the conventional values would be a obstacle for CK.
The Chinese people were governed by the ruling class. Everyone belongs to the typical class. That is to say, the society was divided many classes. The idea of people is still conservative. In contrary to conservative style, Calvin Klein is famous for its bold and sexy manner. Consequently, in order to fit in with the situation of china, CK must restrain itself a little for avoiding suffered frustration. We all know that CK&s sexy jeans ads were banned by the foreign press because of it&s too salacity.
In sum, there are a lot of hazards Calvin Klein should face in the future in china. The politics, the economics and the conception of people will give CK many puzzles in the road of developing in china.
Overall, this chapter had introduced the development of the marketing strategy of CK in china. Calvin Klein has got great success in china. CK&s marketing strategy is most rigid. Direct exporting and the global internet system help CK lay a solid foundation to enter into china. The increasing number of independent stores and more commercial agencies shows its first successful step. The market segmentation is perfect to Chinese market. They know where the Chinese consumption is and aiming at the target to take measures. The adjustment of the product color and the clothes makings make Chinese people feel friendlier. And the middle level price can let Chinese afford it. Diverse channel helps the CK products access to consumers commodiously. Due to its notional ads, the fashion week which attracts a lot of super stars in the various areas and the verbal promotion of personal consumers, CK promotes its brand and cause its image more positive and healthier. Not only all are success, the hidden risk and dilemma would be a big problem for CK people to think over. They must face and solve these difficulties prudently and show the positive altitude to Chinese consumers.
Bibliography
,2012. The Heavy Crop Of CK In China. [Online] Available At
[Accessed 4 March 2012]
Baike. ,2012. The Information Of Calvin Klein. [Online]
[Accessed 21February 2012]
.cn,2011. Calvin Klein will focus on the Chinese market. [Online]
[Accessed 8 November 2012]
.cn, 2012. Chinese Internet users break through five hundred million.
&& [Accessed 1 January 2012]
Kotler.P & Keller. L.K.& Marketing Management.[m]
May 2011, 13th& ed.& Shanghai People Publisher.
MBA lib, 2010. The Definition Of Direct Exporting. [Online]
&&&& [Accessed 27 May 2010]
.cn, 2008. Why Are The Luxury Brands So Popular In China? [Online]
&&&& [Accessed 31 January 2008]
, 2010. The Calvin Klein Products Price. [Online]
&&&& [Accessed 2010]
, 2007. Calvin Klein: the whole world was shocked by a underwear for twenty-five years. [Online]
怎么写市场营销调研报告？留学作业网提供市场营销报告写作范...
代写国际市场管理论文：On the Chinese Translation of Brand Names in Eng...
competitiveM arketing Strategy Individual Assignment...
荷兰市场营销硕士毕业论文：Literature Review部分，是www.ukassignm...
International Marketing
Assignment代写 国际市场学作业代写...
留学生市场营销管理课程论文写作需求-Mary Kay’s marketing activi...