LA
GEAR RE-BRANDING REPORT L.A. GEAR GIRL’S
CONTENTS 1- INTRODUCTION 5- L.A. GEAR HISTORY 11- RE-BRANDING OBJECTIVES 13- GIRLS 15- RETRO 17- CONSUMER PROFILE 19- CHARLOTTE FREE 21- REVIVAL OF SPORTS BRANDS 23- COMPETITOR ANALYSIS 27- COLOUR PALETTE 29- WEB DESIGN 33- LOGO 35- SOCIAL 37- BANNERS
INTRODUCTION
L.A. Gear have previously gained market share, particularly in the late 1980’s when they reached a peak. A once extremely popular brand, L.A. Gear unfortunately traded management too often and diversified stock without vital research. In order for L.A. Gear to reach a new demographic and occupy the market once again, the companies identity has been re-designed. The goal of this re-brand is to attract a new target audience, the youth market is saturated with fashion brands, the key objective is to push the retro element for girls, a trend that is cool and contemporary. The re-brand will appeal to the fashionconscious female; the trainer collection will be sold online and will therefore require a micro-site. Imagery and social media will be created to appeal to a current market, edgy and vibrant imagery will attract the demographic whilst also reflecting L.A. Gear’s heritage.
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OUR PAS
ST
L.A. GEAR HISTORY
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In 1982 Robert Greenberg opened a women’s clothing store in Los Angeles on Melrose Avenue. This store sold big brand name clothes and shoes; it was here that Greenberg launched the L.A. Gear clothing label. Around Greenberg started to focus the company’s efforts on wholesale shoe sales rather than apparel, so the retail store was closed, as it was unprofitable. By 1985 Greenberg had established a presence in the athletic shoe market, then came the release of the women’s Canvas Workout shoe. These shoes were aimed at fashion conscious females, women who wanted the comfort of a trainer combined with style and colour. These were met with great success, and this was shown through sales that increased from $200,00 at the start of the year to $1.8 million at the end of 1985. In 1986 L.A. Gear became a public company, the extra money meant that the company could diversify their stock. Rather than just supplying footwear, in the later 1980s the brand started to produce sportswear for women, men and children. This clothing included sweaters, and accessorised jeans, the L.A. Gear logo was displayed clearly on all items. Building on the success of the women Canvas Workout shoe shoe line, L.A. Gear started to decorate the basic women’s shoe line, adding colour and fringing. This also applied to the men’s shoe line, L.A. Gear created vibrant basketball hightops. This continued into the children’s line, adding pattern and colour into the collection. L.A. Gear saw a great surge in their sales and also product recognition, sales increased 200% in 1986 and this doubled in the next year. In 1988 Business week selected L.A. Gear as one of the best small American companies. Publications such as Business Week and the Wall Street Journal said that L.A. Gear’s stock was the best performer on the New York Stock Exchange in 1989. In 1990 company sales peaked at $818.8 million alongside the share of the U.S athletic shoe market, its 11.8 % put L.A. Gear third behind Reebok and Nike. In 1990 analysts highlighted L.A. Gear as a ‘flash in the pan’, and this was based on L.A. Gear’s weak sale in sports stores and outlets, many didn’t agree due to the power L.A. Gear had in department stores and mass merchandisers. L.A. Gear had managed to capture a large clientele, stocking their products in huge department stores such as Nordstrom, many said this was a brilliant marketing strategy. By 1990 the Wall Street paper quoted Greenberg saying ‘we’ve taken the number three position now. Our brand is growing and consumer confidence is gaining every day’ this success lied in the hands of Greenberg who designed the shoes and Sandy Saemann, the marketing professional. The fact they appealed to fashion conscious women was unique of the time. In 1989 Advertising age said ‘L.A. Gear has really hit on a formula no one else has, they take a shoe that’s not a real technical shoe, so not expensive to produce, put some spangles and coloured trim on it and put their money into advertising’. In 1989 due to the success L.A. Gear had in the women’s market, L.A. Gear decided to expand its sales in the men’s market. L.A. Gear once again used the fashion aspect that was successful within the women’s market, when entering the men’s market. They sold hightops featuring bold designs aimed at the basketball market, however the men’s market was extremely competitive. The men’s athletic shoes accumulated to 70 % of L.A. Gear’s competitor’s total sales, but only 20 % of L.A. Gear’s history. However the fashion aspect within the men’s market was not well received, Business week added ‘men typically pay less attention to style, technology has been the fashion’. When it came to endorsements L.A. Gear fell short, rather than hiring young sports stars, L.A. Gear hired retiring sports players such as Kareem Abdul-Jabbar. This move appealed to the ‘elder crowd’ rather than engaging with a younger audience the company had originally intended. L.A. Gear’s main endorser was Michael Jackson, an unlikely candidate; he was paid nearly $10 million to design a line of shoes and t-shirts as well as being the brands spokesperson. This advertising was under the theme ‘Unstoppable’, L.A. Gear aimed to coincide the Michael Jackson rollout with the release of his greatest hits album A Decade. Michael Jackson’s album was never released, his shoes didn’t sell well, and both his endorsement and his line were discontinued quickly, and this cost the company millions of dollars. These mistakes cost L.A. Gear a considerable amount of money with increased inventories and
marketing facilities, opting to license its name to a few clothing production companies instead. In 1992 L.A. Gear cut a 45 percent staff reduction.
reducing profits. This lead to the discount of their shoe styles, this ‘degraded the brands image’ according to the Los Angeles Times. Bad marketing decisions contributed to a net loss of $66.2 million for the company in 1991. Due to the fashionable men’s market not generating profits, in 1991 the company branched into the men’s technical shoe market, introducing the Catapult basketball shoe. The shoe was branded without the L.A. Gear name to distance the Catapult from L.A. Gear’s young low price image. The company chose a high class endorser, Karl Malone a basketball star. But there were issues with the product and this interfered with initial sales. One player tripped on his shoe sole as it broke off during a televised game. The company continued to work and better the shoe and the tem carried on wearing it. L.A. Gear were met with other issues within the technological shoe market, it failed to differentiate its technology enough to please competitors. Nike and Reebok both filed lawsuits against L.A. Gear, costing L.A. Gear a considerable amount. L.A. Gear continued to develop their shoes under the Regulator and Gauge brand names. They built on Catapult technology with the Twista-pult shoe; this allowed the wearer to adjust the amount of cushion offered by the Catapult mechanism. Also in 1991 the company introduced the L.A. Lights series of lighted athletic shoes for children, this was relatively successful. L.A. Gear found themselves in financial troubles after trying so hard to gain a presence in the men’s market. 1991 the company went into technical default on its bank loan, after this it looked for an investor to support the company through its downfall. Trefoil Capital Investors, L.P, invested $100 million in L.A. Gear giving Trefoil a 34 percent stake in the company. Mark Goldston, once a Reebok marketing executive, was given responsibility for L.A. Gear’s business dealings as president and chief operating officer. Greenberg continued to concentrate on designing shoes; he announced he would work without pay until the company made money. However Advertising Age reported that L.A. Gear’s market share had dropped to eight percent from its high of 11.8 percent in 1990. Greenberg resigned in early 1992. As Greenberg resigned, Stanley Gold was positioned as chairman and CEO by Trefoil. The Trefoil-picked management had a record of success in the footwear industry, as well as a reputation for saving floundering companies. In order to reduce costs, L.A. Gear closed its apparel production and
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In 1992 Goldston announced in an article in Advertising Age that the company would separate the fashion and fitness products into clear lifestyle and athletic shoe sections that ‘will run as stand-alone companies in the marketplace.’ These would be distinguishable by the diamond-shaped L.A. Gear logo for the lifestyle shoes and the square L.A. Tech logo for the hightech athletic line. This would allow the divisions to market their products to suit the needs of very different markets. L.A. Gear stopped selling its shoes at discount outlets and convenience stores. They re-focussed on department stores and shoe stores, hoping to further enhance its image through this strategy. L.A. Gear decided they would no longer spend huge amounts on endorsements; a three year endorsement budget was set at $8 million. They also decided to work with a full-time outside advertising agency, Oglivy and Mather, they would handle creative work and media planning. Despite these changes, L.A. Gear announced continual losses in 1994. They contradicted their high marketing strategy when partnering with WalMart, the discount store agreed to buy at $8 million of L.A. Gear shoes per year over three years, selling specifically lower –end L.A. Gear footwear. L.A Gear in 1994 stopped selling men’s performance shoes, focussing on women and children’s shoes. In 1995 L.A Gear were forced to close 8 retail outlets and reduce its workforce by an extra 30%, announcing extreme losses of $51.4 million, they fell into 6th place in the U.S. athletic shoe market, with a market share of only 3%. In 1997 after sales fell further Trefoil sold its 42% stake in the company. L.A. Gear filed for bankruptcy in 1998; by the time they had emerged from this, new managers had a significant plan to rejuvenate the company. Transforming the company from manufacturer to licensor of the L.A. Gear brand, voiding all existing stock, it emerged as a private company, with a workforce of just ten. In 1999 L.A. Gear branded products manufactured under a license appear, he companies biggest partner is ACI International, L.A. Gear have a licensing agreement with them, producing women’s, children’s and men’s footwear.
OUR FUT
TURE
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rE-BrAnding ObjecTives With this re-brand the goal is to create a new target demographic for the brand. There are three key reasons to move forward with the re-launch of L.A. Gear within the young female market: the credible history the brand holds, the interesting brand story, and the potential of the brands retro aesthetic within the current youth market. The original success L.A. Gear had lies within the women’s market, the achievement within this demographic meant L.A. Gear once gained third position in the athletic shoe market, behind Nike and Adidas. We have seen a great impact of London 2012, with more women competing than ever before; moreover women’s football is the fastest growing sport in the world, and the third largest sport game in the UK. This has had a positive effect on the women’s athletic market, trainers are frequently used on the catwalk, within many designers’ shows, and they are also seen considerably within street style imagery. The aim of this diffusion line is to create relevance for L.A. Gear within the young female demographic. This will involve constructing a micro-site, a Facebook page and stylising contemporary imagery.
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I
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Releasing an exclusive range of trainers specifically for girls harnesses L.A. Gear’s previous success in this market. The female demographic has gained a strong interest in the athletic market, craving the latest pair of trainers in the most unique colours and textures. Currently women dominate purchasing at 87% compared to 79% of men. Trainers have become a fashion statement, appealing to fashion conscious women; they are no longer simply associated with sport. Websites have recently arisen that specifically sell to consumers with smaller feet. Realising this niche in the market is ‘Small Feet Big Kicks’, a company that source cool trainers in smaller sizes, therefore appealing to young females.
“The clue’s in the title... we sell kicks, for the smaller footed amongst us. Why should you have to have big feet to get a nice pair of shoes?!” – Small Feet Big Kicks Many companies such as Office, Schuh and Size stock the majority of their coolest and most exclusive trainers mainly in men’s sizes, starting a size 7. However Stores such as Office and Offspring have begun to release trainers such as the ‘Air Max’ in smaller sizes, starting from a size 4, realising the increased demand from females. Recently Purple Unicorn Planet have created a high profile campaign, aimed at Nike this campaign aims to pressure Nike into producing all the men’s trainers in women’s sizes too. This social media campaign ran with the hashtag #PleaseJustDoIt, playing on Nike’s slogan Just do it. “We love Nike trainers and we love fashion. However, all the best Nike trainers, the good ones that look shit-hot, don’t come in women’s small sizes. Despite what a generation of bad TV sitcoms have told you, we aren’t all the same and we don’t all like the same things. So we decided to do something about It.” – Purple Unicorn Planet Reebok after realising the potential of the women’s market, have hired Emily Hodgson and Emilie Riis, the creators of this campaign, to work on future designs and marketing strategies. “We want to collaborate with a brand that is taking the shortage in the category seriously. It’s great to see that we’ve struck a chord with so many women round the world who feel the same way we do, and we are driven by giving them a better trainer selection in smaller sizes.” Emilie Riis Through creating a diffusion line categorically for girls, L.A. Gear gains exclusivity, whilst also providing girls with individuality.
RETRO
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The image of L.A. Gear is extremely retro, having evolved in 1980’s and 1990’s.
This retro element is a trend that has manifested itself within the current market; bomber jackets, mom jeans, halter-necks and high tops are a few pieces that have re-emerged. The retro aesthetic is the brands USP, defining the identity of the company. Focusing on the playful and ‘Saved By The Bell’ style, the new L.A. Gear imagery will reflect the acid and eclectic aesthetic of the late 80’s and early 90’s. Models and bloggers have been channelling the 90s trend. It was championed on the runway at Ashish, Alexander Wang and DKNY. Logo apparel, overalls and crop tops were seen at both London and New York Fashion weeks. Trainer brands are embracing this revival, with the Nike ‘Air Max’ and Blazer being sold in an array of colours, also Saucony have just released a collection of vivid and vibrant trainers with a nod to all things 90’s. It has been shown in Mintel’s 2012 Fashion report that under 35’s are willing to sacrifice fit for fashion, with two fifths of 16-34’s agreeing that fashion is the most important consideration when buying footwear. This highlights the interest this age group has in the latest trends; therefore the retro aspect of L.A. Gear will be an attraction to the current market as it is a contemporary and cool trend. Despite the fact, that this trend is prominent now, the retro trend could phase out quickly. However through this collection L.A. Gear will have gained a current market, further development would go into merchandise, expanding on the trainer collection, to appeal to a youth audience.
COnSUmER L.A. Gear’s diffusion line is aimed at the youth female demographic. Generation Y are constantly craving the most cutting edge products, they are bombarded with media, informing them of the latest apparel, trends and ideas. According to MyVoucherCodes, for the average young woman, two thirds of her disposable income is spent on clothing/ accessories each month. The youth market, aged 18-24, is key to numerous markets, ranging from fashion and technology to mobile and entertainment. This audience has a strong purchasing power, particularly students, who account for approximately half the UK youth population; they contribute roughly £20 billion to the UK economy every year. L.A. Gear will appeal to a fashion conscious customer; a consumer that considers trends but who also aims to make a statement through apparel. An urban-minded individual in the 1624 age range will purchase limited pieces from L.A. Gear, investing in exclusivity. The retro style of L.A. Gear will resonate with an individual that has an eclectic taste in colour and pattern, influenced by pop culture and street style. L.A. Gear’s collection is an expression of the customer’s nostalgia, and appreciation for quirky ensembles.
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PrOFILE
The muse for the L.A. Gear collection will be Charlotte Free, a quirky and alternative model. Charlotte Free has previously modelled for Vivienne Westwood, Topshop Unique, and Jeremy Scott. As well as this Charlotte Free has modelled for high street brands such as H&M, ASOS, Forever 21 and Maybelline; this proves Free’s wide appeal within Fashion. Charlotte Free’s vibrant pink hair and unconventional attitude will appeal to L.A. Gear’s target demographic. Charlotte Free represents the offbeat style of L.A. Gear’s collection, and the idea of pushing boundaries regarding fashion choices. Charlotte Free is a trendsetter, perfectly personifying carefree youth. Charlotte Free is a positive role model for young girls; she is 5’7 with bright hair, showing that beauty is diverse. Her style is current and accessible, without being intimidating.
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MUSE:
Charlotte fREE
Revival of Sports Brands
There has been an increase in the popularity of retro brands, brands such as Fila, Ellesse, and Diadora have become attractive to the current youth. Fashion is constantly changing and evolving, but these new ideas are often repercussions of the past, suggesting a strong link between trend and nostalgia. Current fashion and vintage fashion frequently cross paths in the established fashion market. Ellesse are memorable for their sweatshirt and sportswear, they re-arrived in the UK in 2010 with a limited edition four piece pack. This re-issue collection included a two track tops, a polo shirt and a Tracksuit, all iconic pieces from their past.
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The 2011 S/S collection from Ellesse was an Italian retro-styled sportswear collection, with inspiration taken from their heritage. Archive influences were seen in the collection, their original polo was released in various colours alongside their zipper jacket that was adorned with their logo. The classic tennis shorts also made a comeback, with a strong tennis influence visible within their comeback, another nod to their heritage. In 2011 Ellesse opened a pop-up shop on Redchurch Street, during the six weeks the store was open, Ellesse received great press
from Grazia Daily, MixMag Fashion and Hypebeast. This coverage created a great awareness for the comeback of the brand. Ellesse also revealed their A/W collection in Berlin at Bread and Butter. Occupying a stand in the Sport and Street area, Ellesse revealed the imagery of their A/W 12 lookbook, their stand was retro inspired. ‘Retro-future’ ski and sport was the inspiration for their collection, they revealed jackets, trainers and polo’s. Ellesse have recently a capsule collection that is available to buy exclusively on ASOS. “ELLESSE / Ellesse creator Leonardo Servadio (his initials are L&S if you didn’t see what he did there) started out as a skiwear innovator. He’s come a long way since then, with Ellesse’s logo sweatshirts, track jackets and boyfriend t-shirts picked up by street wear fans with a bit of a thing for the ‘90s.” – ASOS This study shows the demand for unusual and eclectic sportswear; many brands are taking advantage of this growing trend by re-launching previous collections.
VAgABOND When the L.A. Gear diffusion line is launched their main competitor could be Vagabond, a Swedish footwear company. This company would also be popular with L.A. Gear’s target demographic, providing them with 90’s style chunky boots. Consumers would look to Vagabond for a classic style boot; these oversized platforms and unusual details encompass the style of the 1990’s. Vagabond has a vast amount of their stock on Urban Outfitters and ASOS, appealing to a fashion conscious youth market. A pair of shoes range from approximately £70 to £120, made of real leather, the shoes exert great craftsmanship and quality. The price point is relatively high considering the target market; this would appeal to consumers looking for an investment in a timeless piece. Vagabond is the strongest shoe brand in Scandinavia today; their main strength is the craftsmanship and the quality of their products. “When you buy a pair of Vagabonds, it’s the craftsmanship, “the twist” and THE SOUL of Vagabond you pay for. Not the brand.” Vagabond have a steady sense of style, this strength means they are constantly current. The flatform shoes and chunky block heels are contemporary and distinctive however they are durable due to the real leather, and the plain colouring also makes them easy to wear throughout each season. These shoes would appeal to consumers due to the diversity, they could be worn to work and also of an evening, they are a staple piece.
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Vagabond’s main weakness is their social media, Vagabond has 56,420 followers on Facebook, this is a weak following compared to other shoe brands. Brands such as Jeffrey Campbell, and Dr Martens have a considerable amount of followers, their Facebook pages also contains a lot more activity, posting every few hours. Vagabond do not have a Twitter page, this narrows the awareness of the brand. Twitter encourages conversation between customer and brand; not having twitter could limit the relationship between brand and consumer.
COMPETITOR ANALYSIS
BRAND
DING
CoLour palEtte
The colour palette was created through looking at a myriad of media. Imagery from old ID magazines and advertising campaigns helped to form the theme, focussing on bright and vibrant colour. The palette includes pink, teal and yellow. The palette uses a part of the brands equity by continuing the vivid colouring that has been seen in their history. The aesthetic of L.A. Gear’s past has been colourful; this was seen especially within their women’s collection, where the aspect of colour was exaggerated. This was also seen within their advertisements, in which pink, blue, and yellow hues were obvious. The colour palette features on the website and also on the banners keeping the aesthetic continual. These colours are true to the era as well as appealing to the target market, the colours are feminine but also vibrant and eccentric, avoiding the ‘too pink’ element of women’s sportswear. These colours will appeal to a diverse range of females within the demographic, using one colour may have generalised the taste of the audience.
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WEb DEsIGN
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The internet presence of L.A. Gear’s diffusion line is extremely important when moving forward. It is vital for growth and reach; as the internet is fully integrated into the life of an average youth. According to Mintel, the internet is the first choice option when it comes to buying new clothes for a fifth of Britons (22%) – a rise of 10 percentage points since 2010. This shows the importance of the internet to a brands success, a website is vital to a brand as it creates a wider awareness. Through this website L.A. Gear will be able to release important information regarding events, lookbooks and new collections. Establishing an online presence is imperative as it allows a wide range of consumers to access the brand. The website is playful yet clear and concise, the importance is placed on clarity and easy navigation. A busy home page can be intimidating for consumers; therefore this page displays minimal text. The use of imagery is current and relatable and this will resonate with the consumer. The homepage features the overall colour palette, these colours clash yet combine well to create an interesting visual. Charlotte Free is shown on the homepage, as a focus point, this creates an identity for the brand, featuring the muse of the collection on the page gives the consumers an individual to identify with. The font used is quirky yet legible, the font GoBold and Bebas are used throughout the media, providing a consistent appearance. When furthered this resource could provide commentary on lifestyle, beauty, news and culture, as well as apparel, providing this will give the consumer an incentive to stay interested.
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LOgO
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The logo has been modernised, however the retro element still remains, as the connection to the past is vital. This logo has been used on Facebook and also on the banners, it is still simple and concise, but there was a need to update the graphics to appeal to a younger demographic. This logo will feature on the footwear, as before, if merchandise was to expand this logo could also appear apparel. This logo has been created with a consideration towards apparel; branded t-shirts are currently in demand, with brands such as Stussy, Obey and Penfield leading the market. The logo would be placed in the corner of t-shirts; these t-shirts would be sold alongside footwear.
SOCIaL MeDIA Creating a Facebook page especially for the launch of the girls retro collection establishes a connection with the customer. It is a point of communication that many young people use. Posts include the launch event, lookbooks and competitions. Generation Y connect the most to apparel and technology. The latest Marketing Magazine Survey revealed that 97% of young people use Facebook and 45% are on Twitter. Social media is integrated within the life of an average youth; this is an extremely lucrative marketing tool. According to Mintel’s Youth Fashion 2012 report, 48% of Facebook users aged 16-24 have expressed their opinions on clothing brands or designers using Facebook and 17% of Twitter users aged under 25 has discussed fashion brands on Twitter. “This shows the huge scope for brands to use social networking sites to encourage a greater degree of intimacy between consumer and brand to build customer loyalty” – Mintel 2012 Using the colour theme through the Facebook page has created a bold and interesting aesthetic, appealing to girls. Charlotte Free the brands new muse has also featured on the Facebook page, this creates a strong brand identity and personality through social media. The Facebook page would contain a lot of activity, posting at least twice a day to build a relationship with followers. To further the reach to customers a Twitter page would be created. Twitter unlike Facebook encourages constant conversation between brand and consumer, customers can ask questions easily and brands can reply quickly, building brand loyalty. The hashtag for L.A. Gear’s page would be #GIRLSDOITBETTER. This hastag would be used by consumers when posting images of merchandise bought, or during competitions.
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BANNERS
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Banners are used for a brand with an online presence. For L.A. Gear the banner will be effective in increasing brand awareness, driving targeted traffic to the website, and this will in turn generate sales. Display advertising helps to bring potential customers directly to a specific area of the website, this has a clear advantage over other traditional forms of advertising such as print ads. The banners feature the colour palette and also the muse Charlotte Free, this is similar to the Facebook page and the website, keeping the media continual and coherent throughout. The banner shows that L.A. Gear Girl’s is on Facebook and Twitter, encouraging consumers to become followers on social media.