Calvin curbed by copycats
Calvin curbed by copycats
Assignment A
1) in short terms Calvin Klein should use a great amount of money and time on suppressing counterfeit products. It’s destroying their luxury brand, and leaves a bad impression on the customer. After having a rough time on the market, they could announce their return, by designing a new product line, as a response to the latest decrease of their market position.
In the long term, opening stores on exclusive streets is an excellent way of telling the customer what to expect, as they enter the store. I highly recommend opening further stores in capitals, and larger cities.
In order to remain a head of your competitors, you must frequently renew your brand. After you have conquered the position as leader of the market, you can’t lean back, and watch the money grow. Due to constant competition from new designers, as well as the more established ones, companies like Calvin Klein need to add to their existing brand all the time.
2) Given Calvin Klein’s current market position, the brand is suffering. Stores aren’t interested in selling the Calvin Klein fabric, because they don’t want to send the wrong signals to their customers. The brand is losing its exclusivity, because of the counterfeit products. This devaluation of the brand is resulting in stores losing confidence in the possibilities of making profit. Ultimately the problem will end up destroying the company’s revenue. Their chance of making a turnover is minimized, when prominent stores turn down their products. It creates a domino effect, and suddenly the whole market has turned down Calvin Klein. Imitators’ harvest many years of hard work by copying another company’s brand, but occasionally, and in this particular situation, they destroy the entire brand - an escalating problem. High profiled stores aren’t interested in Calvin Klein because of these facts. It’s a major problem for the entire label business. Conclusion is that, Calvin Klein is reckoned as one of the
Assignment A
1) in short terms Calvin Klein should use a great amount of money and time on suppressing counterfeit products. It’s destroying their luxury brand, and leaves a bad impression on the customer. After having a rough time on the market, they could announce their return, by designing a new product line, as a response to the latest decrease of their market position.
In the long term, opening stores on exclusive streets is an excellent way of telling the customer what to expect, as they enter the store. I highly recommend opening further stores in capitals, and larger cities.
In order to remain a head of your competitors, you must frequently renew your brand. After you have conquered the position as leader of the market, you can’t lean back, and watch the money grow. Due to constant competition from new designers, as well as the more established ones, companies like Calvin Klein need to add to their existing brand all the time.
2) Given Calvin Klein’s current market position, the brand is suffering. Stores aren’t interested in selling the Calvin Klein fabric, because they don’t want to send the wrong signals to their customers. The brand is losing its exclusivity, because of the counterfeit products. This devaluation of the brand is resulting in stores losing confidence in the possibilities of making profit. Ultimately the problem will end up destroying the company’s revenue. Their chance of making a turnover is minimized, when prominent stores turn down their products. It creates a domino effect, and suddenly the whole market has turned down Calvin Klein. Imitators’ harvest many years of hard work by copying another company’s brand, but occasionally, and in this particular situation, they destroy the entire brand - an escalating problem. High profiled stores aren’t interested in Calvin Klein because of these facts. It’s a major problem for the entire label business. Conclusion is that, Calvin Klein is reckoned as one of the