New product development Varvatos

Presentation OverviewPresentation Overview

History/Introduction

Goals, mission/statement

Audience

Brand/Product strategy

Costs

Approval/Customer Reactions

Presentation

Company HistoryCompany History

John Varvatos was born in Michigan

He joined Polo Ralph Lauren in 1983

In 1990 was appointed head of menswear design of Calvin Klein

In 2000 launched his debut collection

In 2010 released an exclusive line of men’s tailored suits and accessories called John Varvatos One for Converse

Mission/Vision Mission/Vision StatementStatement

JVO seeks to create urban elegance through suiting it

provides a choice between edgy and classic

gives menswear a more punk and rock-n-roll appeal.

This brand will focus on sleek styled suits with an urban

edge. JVO wants to be the “go-to” of men’s suiting.

Product Core StrategyProduct Core Strategy

Assessing competitors

Weekly meetings discussing progress, problems and ideas

Dedication to customer loyalty and service

All teams have effective leaders (sales, design, administrative)

Target MarketTarget Market

Young professional males

Ranging in age from 18-35

Fashion-minded individuals

Brand Marketing Brand Marketing StrategyStrategy

Strong marketing campaign: “Rock the suit”o Celebrity endorsement dealso Mass media advertising (internet, TV , print)o Biyearly sample sales and events

• Training sessions and staff meetings

• Provide exceptional customer service and a 60-day return policy

• On site tailoring

Brand & Product Line Brand & Product Line ObjectivesObjectives

Firm objectiveso Continuing successful alliance of Converse & Varvatoso Developing consumer-connected and innovative

products

Lifestyle brando Aspirational and Inspirationalo Balance high margin and brand premium

Luxury apparel and accessories collection for meno Appeal to a younger consumero Products for upscale department and specialty stores

SWOT AnalysisSWOT Analysis

Weaknesses Reliance on 1/3 party manufacturer Price range high for casual trend

Opportunities Brand image “People”Running facilitiesFinancing

Threats Counterfeit products Intense competition Fashion influences Macroeconomic conditions

Strengths Uniqueness Product development Quality Cost effectiveness

Consumer Market Consumer Market Analysis Analysis Strategic Business UnitStrategic Business Unit

• The chart above presents the revenues and profits per SBU from 2007 to 2009.

The John Varvatos For Converse Men Suit line part of the “contemporary Brands” SBU, with the potential to achieve higher long-term revenue and profit growth than our other businesses.

Consumer Market Consumer Market Analysis Analysis Secondary dataSecondary data

Demographicso 48 % male in metropolitan areaso 53% single and 60% lives aloneo 45% in management, professional

positionso 3.5% earn a high income

Psychographico Single male Age: 28-44 o Likes snowboardingo Drives an Audi A4 o Watches independent film channelo Reads the economisto Uses Expedia.como Life stage is mid to executive levelo Likes going to trendy barso Likes working outo Lives in trendy apartments

Store locations New York Las Vegas SFrancisco 10012 89169 94108General Characteristics Male 50.1% 55.9% 48.7%Age: 25-44 years 45.6% 34.1% 35.1%One race 96.8% 94.6% 97.5%Householder living alone 75.0% 70.2% 38.6%Social characteristics Education: Bachelor's degree 64.6% 15.1% 33.9%Marital status: Single (never married, widowed, and divorced men) 53.4% 34.2% 41.6%Economic Characteristics Employed 67.4% 58.8% 56.0%Management, professional, and related occupations 65.8% 14.5% 44.1%

Professional, scientific, management, administrative, and waste management services 19.1% 8.7% 18.6%Manufacturing 5.2% 2.6% 9.4%Household income: $100,000-$149,000 13.7% 3.6% 6.8%Household income: $150,000-$199,999 5.3% 1.8% 3.5%Household income: $200,000 or more 8.8% 1.4% 3.8%

Analyzing CompetitorsAnalyzing Competitors

D&G (Dolce & Gabbana)o Same urban chic within the price point rangeo D&G offers many types of clothing

Guccio Price point of their suitso Stronger label

• Clothing from China and India

• Product mix: t-shirts, handbags, suits, jackets, ties, jeans, swim, shirts

• Price range for suits: over $2,000 dollars

CompetitionCompetition

Gucci

Prada

Calvin Klein Collection

Polo Ralph Lauren

Giorgio Armani

Helmut Lang

Marc Jacobs

Paul Smith

Richard Chai

Burberry Possum

SuppliersSuppliers

Hand-made Italian fabrics

Fabrics and cloth supplied from Italy and France

Buttons, pins and accessories will be shipped from Asian countries

Product DevelopmentProduct Development

Brainstorming of possible opportunities o Involve sales people, design team, employeeso Attend trade and fashion showso Produce storyboardso Search for repetitive patterns and fabricso Follow the competitors

Concept Development Concept Development & Testing& Testing

Research on copyright laws and patents

Develop a logistics plan ( pricing, target market)

Computer aided design to visualize the idea

Possible consumer reactions

Test the concept by handing out samples

Launch of ProductLaunch of Product

Advertising and marketing campaigns

Data sheets, line sheets

Promotions and events to get the word out

Analyzing path of product

Design Thinking Design Thinking ProcessProcess

Classic menswear in a very modern wayo express the sleeker mod-inspired edge of Converse

spirito the fit is clean but not too conforming

• message is “you can be classic and clean cut but still rock in’”

A suit is always appropriate—even worn out of the officeo definitive male uniform in the modern worldo society more casual but still casual-chic

• message is “the suits will never die ”

New, exciting entrants into the men's suit marketo Tom Ford, Hickey Freeman, Dior Homme, Browne

Communicating the Communicating the Product StrategyProduct Strategy

The John Varvatos look is one which is inspired by edginess and rock n’ roll

The new Men’s Suit collection will be designed with the Converse customer in mind

Provides a more stylish and sleek look

The brand will focus on classic style with an urban edge

The ThemeThe Theme

Desired Colors in Suiting

Fabrics will consist of :

SilkTweedWool CottonPolyester

Layout DesignLayout Design

Estimated CostsEstimated Costs

Bus Driver Jacket $1195

Button up $165-$198

Tee$88-$300

Dress Pant starting from$165

Product RisksProduct Risks

Losing the classic customero John Varvatose faces the possibility of losing its

tailored and classic customer base. This customer may not be drawn to the rock-n-roll meets punk (Converse) look.

Pricingo The customer who shops at converse may think

that the price point is too high; This opposed to a Zara or Top Shop apparel store pricing might be steep.

Uniqueness and ValueUniqueness and Value

The John Varvatos brand for Converse not only adds a stylish edge, but gives the target consumer a chance to express himself in more ways than oneo Versatile looks: able to dress up or dress down

The quality of the clothing is well worth the price. The tailored garments adds prestige to the brand giving a competitive edge to the name.

Product Line StructureProduct Line Structure

Product Line Templatebasic design elements will remain the same for Fall/Winter and Spring/Summer. Fabric and color swatches will change accordingly to the newest, most innovative styles.

Core and Carryover Products: basic styles: Suit jacket, Pant, and button-up

shirt will remain as core/staple products. Carryover: fashion-forward garments.

Design and Product Design and Product ReviewReview

Storyboard are graphics organizers to display our line, a pictorial representation of our proposed clothing design in full color, along with technical renderings of each garment. A summary of our suit line collection’s inspiration and theme to help us remain focused and consistent as our line develop. As follows:

Clothes in our designs on a flat working figure (a line of super-relaxed silhouettes that had both masculine appeal and rocker glam).  

Swatches of our fabrics (all the fabrics used) 

Color palettes (all the colors that are used in our designs) 

Any trims used

Photographs of our garments

StoryboardStoryboard

Customer ReactionCustomer Reaction

Storyboard allied with our garments. Heavily invest on core products – caution on fashion forward line.

Sales package: computer graphics, price book, samples, swatch cards, garment samples and catalogue.

Pricing: fabric + trims + direct/indirect costs + position in competitive matrix = our final price to retail : $900, and MSRP: $2000

ApprovalApproval

Minimum established by total dollar quantity throughout the whole product line.

Pattern makers interpret design team sketch, followed by sample maker to sew. Creation of prototype to present product line on review meeting design evaluated as design concept to be presented to design team and company’s executive followed by, once approved, submit line sheet to create garment samples sales representative to use at trade shows and market weeks.

Marketing PresentationMarketing Presentation

Fashion/Market Week: tradeshows during market week in NY and Los Angeles, February and September.

Online Communication: social networking (interaction customers/brand) + stimulate awareness + customers to follow latest news + build the brand through affiliated programs and email marketing + search engine optimization + e-commerce.

Sales: attract clientele through tradeshows and road force. 5 sales rep in the east coast + 5 in the west coast, working strictly on commission of 12 %.

ReferencesReferences

www.slideshare.net/wilsonhkong/jvportfolio

www.rockthesuit.com

www.forbes.com

www.nytimes.com

www.hypebeast.com

www.slideshare.net

www.askmen.com