FMM6002
STRATEGIC FASHION BRAND MANAGEMENT ST20166582 Writ 1
PINTEREST. 2017.
Intro Background and History Distribution Channels Market Communication Product Offering Market Analysis Market Positioning Competitor Analysis - POD and POP Consumer Analysis Brand Analysis Evaluation Rejuvenation Strategy Supporting Visuals Bibliography
CONTENTS
INTRODUCTION In order to conduct an appropriate opportunity for growth, this report aims to critically analyse the New York City based fashion house DKNY.
BACKGROUND AND HISTORY DKNY is one of the two main clothing labels created by the American fashion designer Donna Karan. Karan's quest for the perfect jeans, as well as her desire to dress her daughter Gabby, resulted in the 1989 birth of DKNY. DKNY grew so popular and diverse that other brands and labels spun from it, including DKNY Jeans, DKNY Active, DKNY Underwear, DKNY Jeans Juniors, and DKNY Kids. Like Collection, DKNY has an accessories and shoe collection to underscore its New York City street-smart look. (Donna Karen International, 2022).
DAZED. 2015.
CONDÉ NAST. 2015.
Since its inception in 1989, DKNY has been synonymous with New York, inspired by the energy and attitude of the city. Drawing on Karan's original principle of designing for the woman who never knew where the day would take her, DKNY has transformed into a global lifestyle powerhouse: the dynamic wardrobe of everything you need to live a New York life—wherever that may be. (Donna Karen, 2022) Acquired by G-III in December 2016, the brand continues to be recognized as one of the most heralded names in American fashion. (G-III Apparel Group, Ltd.. 2022)
MILESTONES FOR DKNY FROM THE BEGINNING 1992
1989
Launch of DKNY Shoes, DKNY Kids and DKNY Fragrance
Launch of DKNY Ready To Wear
1990
Launch of DKNY Hosiery, DKNY Jeans & DKNY Accessories
2000
1994
DKNY flagship store opened in London, England
1993
Launch of DKNY Eyes, DKNY Mens and DKNY Optical
2009
DKNY launched Jeans Junior, Watches and Men's Fragrance
1998-99
DKNY stores opened throughout America
DKNY app, Facebook page and @DKNY Twitter created
2004
Launch of 'Be Delicious' fragrance for women
DONNA KARAN COMPANY HISTORY |, 2021
LOGO EVOLUTION
1989 - 2016 The first logo created for DKNY, the writing of 'Donna Karan New York' underneath the bold 'DKNY' text was potentially used to emphasize the connection between Donna Karran's two brands.
2016 - Present The modern DKNY logo is easily readable and straightforward. There are only the four glyphs that make up the brand's name. The letters are all evenly spaced and the same size, this adds a practical and contemporary feel to the logo.
DISTRIBUTION CHANNELS Donna Karan have stores in more than 120+ countries. It has approximately 20 stores in China, 2 in Canada, 2 in Doha and 4 in Dubai. DKNY has presence in New York, London and Paris which is the fashion capital of the world. It has not partnered with any third-party retail store to keep its exclusivity. (MBA Skool Team, 2019). Since G-III purchased DKNY in 2016, G-III Apparel's double-digit growth streak continued well into the third quarter with net sales up 16 percent at $1.02 billion, setting another quarterly record and exceeding expectations. As a result, the apparel company has once again increased its full year net income forecast. (Fashion Network, 2017). They also expanded distribution across over 55 countries through approximately 1,500 retail partner doors globally, including premier department stores and digital pure play sites. (G-III Apparel Group, Ltd.. 2022) DKNY currently only ship within the United States and not internationally and they do not have an app for consumers to purchase their products on.
MARKET COMMUNICATIONS Marketing communications (also known as marcom) is the messages and media that marketers use to communicate with target markets. Examples of marketing communications include traditional advertising, direct marketing, social marketing, presentations and sponsorships. (Gartner, 2022). DKNY used to have a Twitter account called 'DKNY PR Girl' run by Aliza Licht, the brand's Senior VP in Global Communications. The account was extremely popular and gathered over half a million followers before the account dissapeared in 2009. Throughout her time as PR Girl Aliza kept her identity a secret while voraciously tweeting a mix of tidbits about working at Donna Karan HQ as well as about the minutiae of her life as a fabulous fashion-industry gal in NYC. (Refinery29, 2015).
ALIZA LICHT, 2013
SOCIAL MEDIA PRESENCE
DKNY are very active on Instagram, and the account has generated 2.6 million followers and over 2.5 thousand posts. The account regularly runs campaigns and currently #DKNYDoYourThing is the hashtag that the brand are promoting. DKNY have also gained just under 500k followers on Twitter and 1.8 million followers on Facebook.
INSTAGRAM, 2022, DKNY
PRODUCT OFFERING DKNY offer a vast range of products for men and women, including clothing, shoes and accessories. It is evident after looking through DKNY's website that DKNY offer a vast range of products and they keep up to date with the latest trends. A lot of DKNY's products and neautral colours, which is beneficial because they can be easily worn and matched with items already in the consumers wardrobe.
DKNY. 2022.
MARKET ANALYSIS The impact of coronavirus (COVID-19) was felt hard across apparel, and fashion industries. In Europe's clothing sector, compared to the same period in 2019, production fell by 37.4 percent in the period between April-June 2020, when global coronavirus cases reached a peak. Retail sales of clothing products saw the most dramatic decline, with 43.5 percent of drop in sales. (Statista, 2022). The main driver of the DKNY brand in the past and currently was the need for fashionable and trendy designs among the young people. The growth of the brand led to interest from outside investors who were interested in purchasing the company (Ebster, 2011).
High Price
MARKET POSITIONING The perceptual map show's DKNY's current market position against competitors according to pricing and the quality of the brand.
Low Quality
High Quality
Low Price
As shown, DKNY's competitors are clothing retailers, and also some accessories and lingerie retailers. DKNY are in the High Quality, High Price position on the map alongside many other well known brands. This places them in a very over saturated and competitive position in the market.
COMPETITOR ANALYSIS Value Proposition
Audience
Range of Authority
Relationship
Created for a consume that values quality, exclusivity, style, fine living and prestige.
We preserve the integrity of our iconic fashion brand with every customer interaction.
We believe in a culture that provokes discovery and brave thinking.
the Ivy Leaguers, athletes, influential business men and ladies of leisure.
25 to 54 years old, targeting a younger, affluent demographic, often overlooked by luxury brands.
14 to 50 years old fashion men and women.
Apparel, accessories, home, fragrances, and hospitality.
Accessories, footwear, watches, jewelry, women's and men's ready-to-wear.
Men's and women's sportswear, golf apparel, jeanswear, underwear.
"To bring a sophisticated jet-set lifestyle to women and men around the globe."
"We seek to thrill and inspire our audience while using provocative imagery and striking designs to ignite the senses."
“to inspire the dream of a better life through authenticity and timeless style.”
The table (Kim and Mauborgune, 2005) shows an overview of the strengths and weaknesses of DKNY's main competitors.
POD AND POP Every organization has to build their brand on specific associations that they want to be related to. These associations can be divided into two categories: points of parity and points of difference. Points of parity are an association that the product or service must offer at the specific market the organisation is active in. Points of difference are on the other hand distinct features that the company use to differentiate from their competition. These differentiating associations are often what the brand is associated with in the mind of the customer and can be both tangible and intangible. (Kapferer, 2004) (Kotler & Keller, 2006).
Points of Parity (POP) DKNY offers POP such as mens and womens clothing, accessories, bags, shoes that are high quality, on trend styles, social media presence and campaigns, online shopping services.
DKNY. 2022. DKNY x Found My Animal
Points of Difference (POD) DKNY's points of difference includes their ability to sell high end products at a lower price point than some of their competitors, although still at a high price point. DKNY's POD also includes some of their unique product offerings e.g. their 'DKNY x Found My Animal' collab that offers consumers the choice to purchase clothing for their dogs. DKNY. 2022.
CONSUMER ANALYSIS
Donna Karan New York (DKNY) target both men and women, who are middle ages and mostly from the upper class.
After analysing DKNY's products, it's clear that they are trying to target a younger demographic with the style of clothing and accessories that they are offering the consumer, but they are still known as having an older target market. According to (YouGov, 2022) DKNY are most popular and liked amongst the Millennial age group (those born between 1981 and 1995) but are also known amongst the Gen Z and Baby Boomers.
DKNY popularity & fame | YouGov. 2022.
CONSUMER PROFILE Demographic Variables
Psychographic and Behavioral Variables
Name: Jane Age: 40 Job: Owns own fashion business Salary: $90,000 Marital Status: Married
Self Image Perceptions: Confident in herself, likes to follow trends, loves fashion and style, loves unique fashion pieces Purchasing Behaviour: In person, and online Social Media: Instagram, Facebook Interests and Hobbies: Running her fashion business, socialising with friends, spending time with her family. travelling Reads: Vogue, Elle, Harpers Bazaar, GQ, Cosmopolitan Watches: Project Runway, KUWTK, America's Next Top Model, The Bachelor Brands: Dior, Chanel, DKNY, Calvin Klein
Geographic Variables Location: New York, USA Housing Type: Penthouse apartment City Population: 19.84 million (Statista, 2021)
CONSUMER MOODBOARD
BRAND ANALYSIS American Marketing Association (1960) defines brand as “A name, term, design, symbol, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from competitors.” In other words brands are a means to differentiate from the competitors (or future competitors). Brands are a direct consequence of the strategy of market segmentation and product differentiation. Branding means more than just giving name and signaling to the outside world that such a product or service has been stamped with the mark and imprint of an organization. Branding consists in transforming the product category; it requires a corporate long term involvement, a high level of resources and skills (Kapferer, 2004).
DKNY. 2022.
BRAND INDENTITY V BRAND IMAGE The Core Identity The core identity represents the timeless essence of the brand. It is the center that remains after you peel away the layers of an onion or the leaves of an artichoke. The core identity, which is central to both the meaning and success of the brand, contains the associations that are most likely to remain constant as the brand travels to new markets and products. (MBA Knowledge Base. 2022) The Extended Identity The extended brand identity includes elements that provide texture and completeness. It fills in the picture, adding details that help portray what the brand stands for. Important elements of the brand’s marketing program that have become or should become visible associations can be included. (MBA Knowledge Base. 2022)
Aaker (2010) created the brand identity model that will be applied to DKNY's Core ID and Extended ID. DKNY's Core ID is to represent the international pulse of New York in the design, marketing and delivery of a complete lifestyle system to a global customer. They will apply the highest standards of creativity, integrity, quality and innovation to their products and concepts. Simply stated, DKNY is the energy and spirit of New York. International, eclectic, fun, fast and real. (CrunchBase, 2022). DKNY's Extended ID is recognised through their tangible elements, for example their choice of logo, typography, campaigns, marketing promotions and aesthetics used through branding.
Core ID Typography
Brand aesthetic
Integrity Quality Innovation
Logo
Marketing promotions
Extended ID
KAPFERER'S BRAND IDENTITY PRISM
High quality Casual Stylish Iconic
New York inspired
Energy and attitude of NY Dynamic
Everything you need to live a New York life
Confident Modern Elegant Sensual
Modern women Forward thinking No sacrifice
I am moderm I am confident I am iconic
Kapferers Brand Identity Prism (2012) works as a diagram to help understand these elements and how they relate to one another. Together, Kapferer argues, the elements help businesses build strong brands, which in turn helps them communicate clearly and transparently and be easily remembered and recognized. (How Brands Are Built. 2018) The prism opposite visualies how DKNY has used their identity to fully express their brands essence throuhgout the 6 sections The advntages of using this model is that it allows a brand to analyse the way that they are percieved by consumers. Doing this can then help the to identify the most effective way to improve DKNY in order to meet the wants and needs of their target market.
BRAND PERSONALITY
Brand personality has been defined as the human characteristics or traits that can be attributed to a brand (Keller K, 2006). There are five main types of brand personalities with common traits: Excitement: Carefree, spirited, and youthful Sincerity: Kindness, thoughtfulness, and an orientation toward family values Ruggedness: Rough, tough, outdoorsy, and athletic Competence: Successful, accomplished, and influential, which is highlighted by leadership Sophistication: Elegant, prestigious, and sometimes even pretentious (Aaker's Brand Personality Scale, (1997) Personality traits help consumers establish a relationship with a brand as they identify with the personality and not just the product. As noted in Kapferer's Brand Prism, DNKY's personality is confident, elegant, modern and sensual. This relates back to the 5 types of brand personalities, and DKNY show traits of sophistication and competence. DKNY. 2022.
SWOT ANALYSIS Strengths: Brand has expanded globally Huge variety of products
Weaknesses Negative press (controversy over using animal fur) Often compared to other brands
Opportunities: Expand into other target markets (Gen Z) Increase social media presence
Threats: Many similar brands Fake imitatons of products
EVALUATION After thoroughly analysing DKNY and researching their current branding and marketing methods it is obvious that they communicate their brand message and effectively meet the product needs and demands of their consumers. DKNY struggle when targeting the younger demographic (Gen Z) as their current target consumer is middle aged men and women. Gen Z marketing requires more than simply selling a product. Born between 1996 and 2010, this generation is value-conscious and drawn to brands that “keep it real.” They're creative, bold, and the creators of many trends on TikTok, Instagram Reels, and other platforms. (Later Blog, 2021). It is necessary for DKNY to target Gen Z more as they are missing out of a huge market, the majority (97%) of Gen Z consumers say they now use social media as their top source of shopping inspiration (Forbes, 2021). It is essential for the growth of DKNY to try and engage the younger consumer and emerge into a new market.
REJUVENATION STRATEGY
According to Aaker (1991), brand rejuvenation possesses comparatively less risk and cost than adopting a process for developing new brand, the cost of which is hundred times greater than rejuvenating the old brands equipped with possibly higher probability of failure. Rejuvenation of established brands leads to elicit customers’ purchase intentions and increase customer loyalty (Kolbl, Ruzzier & Kolar, 2015).
TARGETING GEN Z Generation Z is synonymous with technology. While Millennials were digital, Generation Z is the first generation to grow up with technology from the start. That’s why audience segmentation is so important when marketing to Generation Z; they shouldn’t be lumped in with Millennials. (2022. Marketing to Generation Z) Targeted towards Gen Z, DKNY will bring out a new interactive mobile app that will display their current products for sale. DKNY don't currently have a mobile app so creating one will help to engage the Gen Z consumer. An app is an effective way to target Gen Z because Gen Zers account for almost 40% of mobile users (Forbes, 2022). According to (Forbes, 2022) Gen Z are most likely to engage with apps on mobile devices, the app should be easy to navigate even with just one hand. Important buttons should be placed at the bottom so that the user can easily reach them with one thumb. Icons, rather than text, are a simple and efficient way to direct users through an app.
Kulture Hub. 2022.
DKNY APP
Searcn...
SUPPORTING VISUALS Search bar to quickly find products.
Interactive home page with images that display products with minimal text.
DK NY IDKNY mobile app thumbnail
Easily accessable buttons to navigate through the app and quickly get to home, search, shopping cart and wishlist.
Searcn...
SALE WOMENS
A 2021 Consumer Culture Report by 5WPR found that Gen Z is now spending 43 minutes more per on online shopping than they did before the COVID-19 outbreak. They (77%) say online shopping allows them to discover products from new or small companies they wouldn’t find in person. Only 38% say they prefer in-store shopping. (Pamela Bump. 2021)
MENS ACCESSORIES
The search page on the app will allow the consumer to seamlessly navigate through the different sections and products.
DKNY's Instagram and Tik Tok will help to promote the launch of the new app. The app will be promoted using sneak peaks posted on the social media channels. The social networks with the most monthly Gen Z users are TikTok (37.3 million), and Instagram (33.3 million). These remain the most popular among Gen Z over the next four years, according to estimates. (Insider Intelligence. 2022)
DKNY DKNY THE APP COMING SOON
DKNY - Exciting news, our new app will be launching soon!!
DKNY
DK NY
DKNY THE APP COMING SOON
DKNY - Our new app thumbnail!
YouTube is the first point of call for free online video content. With millions of internet users browsing the platform every day in search of music videos, tutorials, or vlogs, marketers have come to see YouTube as a very fertile advertising ground. In 2020, YouTube influencer marketing spending reached an estimated 6.6 billion U.S. dollars worldwide, up from 5.5 billion the previous year. (Statista, 2021). Gen Z is onboard with influencers. Nearly two-thirds report following them and 50% say that they trust their recommendations. Though, they'd prefer brands to feature more relatable creators in their ads, not celebrities. (Influencer Marketing Hub. 2021)
DKNY HAUL
DKNY haul and app launch | 2022
DKNY will work with fashion, beauty and lifestyle influencer Jordan Lipscombe to promote the app on her youtube account that has generated 1.88 million subscribers, and she has almost 500k followers on instagram. Jordan will create a video displaying a DKNY haul, whilst mentioning how she purchased all the clothes using the all new DKNY app.
Brand Equity Brand equity, according to Keller, is the effect that brand knowledge has on consumer response to the marketing of a brand, with the effect occurring when the brand is known and when the consumer possesses favourable, strong and unique brand associations (Keller, 1993).
BRAND LOYALTY BRAND AWARENESS BRAND EQUITY
PERCEIVED QUALITY BRAND ASSOCIATIONS BRAND ASSETS
Create engaging and rewarding content, use influencer marketing to gain trust. DKNY's brand awareness was lacking as they didn't have an app to display products, they will gain awareness through paid media (POEM) from the reaction to the app launch. DKNY are known for high quality products which justifies a higher price point. The app will be used to promote the high quality produts. Forms a bond with consumer and helps them to remember the brand. Creates brand value and uniqueness.
All of these components provide value to the consumer, enhancing: Purchases Brand loyalty Trust in the brand And enhances the brands: Image Awareness Target consumers
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