BASIC BUSINESS

Mohd Zairiza Bin Mohd Hashim

Yasser Abdul Khaliq
Dharsyanee Sathies
Haripreya Balamurali Vairavan
Lidya Nair Vijaya Chandran

INTRODUCTION

Calvin Klein Inc. is an American fashion house .It is established in Midtown Manhattan New York City. It was endowed at 1968 by Calvin Richard Klein. Currently, it has more than 700 stores in 50 different countries .Calvin Klein has participated in 49 RUNWAY PROJECT. Calvin Klein is also well known for fragrances, accessories such as watches and bedding, hosiery, table tops and furniture. Calvin Klein Inc. is currently owned by Paul Thomas Murry III

"Anything I wanted to do, I did. If there's something I want to do, nothing stops me."-Calvin Klein

History of calvin klein…
History of calvin klein…
Calvin Richard Klein was born to Flow and Leo Stern on November 1942, at Bronx, New York, USA. Klein was the second of three children. The family was well doing, while the grandmother was running a very successful tailoring shop. Calvin Klein finished his high school at “High School of Arts & Design “.

Klein spent his early age, busy studying and sketching fashion designs and sewing. Flow (Klein’s mother), mostly encouraged his passion and love towards arts and design. Later, he moved on to persuade his higher studies at “Fashion Institute of Technology “and graduated in the year of 1962.

For the first five years after the graduation, he worked as an apprentice in suit and coat house on 7th avenue in New York City.

Klein with the help of his childhood friend (Barry Schwtz) opened the very first, Calvin Klein INC. at 1968 with the capital of $10000 loan and $2000 of his own money. Their first customer was actually by accident by a coat buyer from one of the largest New York City clothing store, Bonwit Teller. She placed a huge amount of order which was $50000 and told him ,"Tomorrow you will have been discovered." . She was fascinated by the coat line and design and she promoted the favourable product of Klein , with the help of a store executive and the pleasure reviews from the Medias, he was able to expand woman’s sportswear.
In 1973, Klein started designing sportswear, creating what would become known as "The Calvin Klein Look" and giving birth to American leisurewear. With youthful silhouettes, a pristine use of color and fine fabrics, his affordable sportswear first caught the attention of American women who were fed up with shameless and illogical Parisian couture. Shortly after, men became attracted to the relaxed, masculine look of Klein's designs, which were in tune with the health and bodybuilding craze that was sweeping America at the time.
Klein had finally hit the big time. The money poured in as his clean, muted, simple designs became hits with both the buying public and the fashion press, who gave him the prestigious Coty Award in 1973, 1974 and 1975. But success did not come without a price. In 1974, it cost him his marriage.
After his divorce, Klein embarked on a self-described "wild period," spending his nights partying at disco club Studio 54, where cocaine and casual sex were part of the scene. As his power and notoriety grew, Klein maintained a high public profile, worrying little about the liabilities of fame-until 1978, when his 11-year-old daughter, Marci, was kidnapped. Although she was released unharmed, both Klein and his daughter were left indelibly scarred. The once publicity-hungry Klein gave up partying and became a virtual recluse.
The year 1980 marked a turning point for Klein's empire. A series of commercials by photographers Doon Arbus and Richard Avedon that featured 15-year-old model Brooke Shields cooing, "Nothing comes between me and my Calvins," made Klein's new line of tight jeans a nationwide phenomenon, selling 200,000 pairs the first week alone.
The provocative commercials marked a revolution in clothing advertising. It was a more sensual approach to marketing that would later be emulated by Klein's competitors. The commercials also prompted criticism from feminist leaders such as Gloria Steinem, who proclaimed they were pornographic and inspired violence against women. The negative publicity only served to fuel sales.
Klein would once again court controversy in 1982, when he put his name on the waistband of a line of men's underwear and started a campaign featuring near-naked men dressed only in his designer skivvies. Many publishers rejected the sexy ads. But once again, the controversy spilled over into Klein's favor, and stores simply couldn't keep the underwear in stock.

In 1983, Klein and his partner bought Puritan Jeans, their jeans licensee, for $65.8 million. It was Klein's first and nearly fatal misstep. Lifestyles were changing as the reality of AIDS emerged and halted the casual sexuality of 1970s. As a by-product of this, the demand for tight-fitting designer jeans waned. By 1984, the designer jeans business had dried up, leaving Klein deep in debt. He refinanced the debt with $80 million in junk bonds, leaving his empire in serious danger of crumbling. To make matters worse, rumors were spreading that Klein was dying of AIDS.
The rumors ceased when Klein married his second wife, model Kelly Rector, in 1986. But Klein was experiencing a dark period in his personal life. He had become addicted to vodka and Valium. When Klein's office announced that he had gone to the Caribbean on an extended vacation, the rumors about AIDS resurfaced, so the truth was revealed-Klein had been admitted to the Hazelden Clinic in Minnesota for alcohol and drug abuse.
Klein came out of rehab facing bankruptcy, but was saved by a pal from his Studio 54 days¬-multibillionaire David Geffen. Given a new start, Klein spawned numerous product lines, including a more affordable clothing line called CK, and licensed his name on sunglasses, watches, handbags and more. All the new products did well, but Klein's ads continued to spark controversy.
In 1995, he launched a series of jeans ads featuring real teens, some as young as 15, in sexually provocative poses. Dubbed "kiddie porn" by the press, several television stations pulled the ads, and the FBI and Justice Department began investigating the company for possible violations of child pornography laws. The ads were universally denounced, but in the end, the Justice Department ruled they were not pornography.
Klein pulled the ads, and in spite of the negative press, came out smelling like a rose-his cK one perfume and CK jeans selling well, his brand-new headquarters store opening in New York City, and his company with the healthiest financial picture in many years. Indeed, the man who popularized name-brand jeans, clean American lines, and men's underwear for women is unquestionably a stylish survivor as he enters the 21st century as one of the world's top fashion designers.

Good Press, Bad Press
At the same time his advertisements for jeans and fragrances were being criticized, Calvin Klein's clothing was receiving critical acclaim for its clean, modern lines. Time magazine called him the "Frank Lloyd Wright of fashion," and named him one of the 25 most influential Americans in 1996.

Young Gun
When Calvin Klein won his first of three Coty American Fashion Critics' Awards in 1973, he became the youngest designer ever to receive the honor. Two years later, he became the youngest designer ever voted into the organization's Hall of Fame.

Unique Marketing Of The Calvin Klein Inc. By Way Of The Company’s Vision & Mission !!!

Follow your passion: Klein’s entrepreneurial spirit emerged during his childhood, and many people nurtured it until one day he opened his first store in New York City. Klein stressed that he had to believe in himself and pursue his dreams, citing this confidence as the key to his success. He constantly told himself, “I will be discovered one day!” Entrepreneurs like Klein must believe in themselves beyond a shadow of a doubt to succeed.
Know your customer: Too many businesses blindly chase money without ever defining their target market. However, as Klein noted, it’s impossible to create a brand that appeals to each and every person. Business owners must determine which customers appreciate their products and services most while generating the greatest profit and then market specifically to them. It’s better to work with fewer highly profitable customers you enjoy than many low-profit clients who can make your life miserable.
Develop a vision: In order for your brand to succeed, people need to know who you are and what you stand for Klein said, “We worked hard at defining our message and why they should buy from Klein. We field tested products and always connected a story to the product.” It is also important to develop a vision of the customer’s needs and wants. Like Steve Jobs, Klein imagined how people would like to live and created products around that idea. His brand’s research extends to the packaging, appearance, and smell of its products, with all aspects geared toward attracting and exciting the customer.
Embrace your individuality: Again echoing Jobs, Klein stressed the importance of being different from competitors. “You have to stand for something and stand out in the crowd,” he said. “I wanted us to be different from other companies.”
Hire the right people: In Good to Great, Jim Collins emphasized the importance of “getting the right people on the bus” and providing strong leadership to them. Klein looked for passionate, intelligent people to build his staff, then devoted significant time to inspiring and leading them.
Communicate clearly: Once you have the right staff on board, make sure they’re well informed about the direction the company is taking. “Communicating a strategic plan between divisions is critical,” said Klein.
Invest in the best quality: Klein stressed the importance of spending time to develop excellent products and services rather than rushing. “Every product had to be something I was proud of” in order to be released, he said, noting that timing also plays a key role: “You have to know when to take opportunities.”

Take smart risks: Never taking chances means you will never suffer failure—but it also means that you’ll never experience the pinnacle of success. Taking smart risks, however, can yield great benefits. “My lucky number has always been 13, and I am not afraid to take risks,” Klein said. “Fortunately, we took more good risks than bad ones.” But this wasn’t just luck. Klein said he took “one step at a time” when developing strategies and assessing risks, ensuring informed but daring decisions.
Seek help from others: “Ask for advice,” Klein said. Hungry for knowledge, he sought input from many people, including his daughter, Marci, who helped him discover an untapped market in young women’s clothing. Business leaders, take a hint from Klein: you will never have all the answers. Surround yourself with people who think differently than you do, and hire team members who are smarter and more organized than you are. Leaders can benefit greatly from employees that challenge their ideas in a friendly way, forcing them to see things from a variety of perspectives. People should feel comfortable telling the “emperor” that he has no clothes on!
Market and advertise aggressively: Klein focused much of his attention on marketing and advertising, even getting “emotional” when ideas worked well. He cautioned against cutting advertising budgets in difficult times (as many businesses did during the Great Recession), calling it “a huge mistake.” It’s necessary to spend money to appeal to your customers and bring their spending to you, even when funds are tight. It takes money to make money!
Still, marketing is only effective when businesses have defined clients in mind and create an image that appeals to them. At Calvin Klein Inc., this began with advertising and extended to the retail locations themselves. “The company had to look a certain way,” Klein noted. “We wanted the customer to walk into the same environment in the retail stores as they saw in our ads.” Calvin Klein’s often-controversial commercials and print advertising (who doesn’t remember the “Nothing comes between me and my Calvins” ads—and all the media attention they generated?) were intentionally designed to excite people and get them talking about the brand.
Plan for the future: Klein created a detailed succession plan, a task that should be a priority for every leader who wants their business to continue thriving even without them. He explained, “I wanted to create a brand that would outlive me because it was a part of my life.” Business owners should be sure to dedicate adequate time to developing plans for the future, as Klein did. “Growing too fast is a bad idea!” he noted.
The bottom line: We gathered much interesting information from hearing Calvin Klein talk about his businesses, experiences, and values. During his impressive career, Klein merged many ideas, traits, and techniques—high quality standards, innovation, following your passions, thinking like a customer, taking smart risks, hard work, vision, confidence, individuality, and an emphasis on marketing—into a strategy that propelled his brand to astronomical success. Business leaders of all types can learn from studying his legacy! http://www.mikedubose.com/posts/calvin_kleins_business_wisdom_and_what_we_can_learn_from_it/ Controversy

References …
Wikipedia. Modified on 11 November 2014. Calvin Klein. [Online] Available http://en.wikipedia.org/wiki/Calvin_Klein#history. Wikipedia. Modified on 16 July 2014. Patrick Henry Village. [Online] Available: http://en.wikipedia.org/wiki/Patrick_Henry_Village.
DuBose, M .,& DuBose, b . (2013). Calvin Klein’s Business Vision (And What We Can Learn From It). Mike Dubose. Retrieved from http://www.mikedubose.com/posts/calvin_kleins_business_wisdom_and_what_we_can_learn_from_it/
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RETRIEVED FROM http://nypost.com/2002/12/18/phillips-van-heusen-snags-calvin-for-400m-in-cash/ Retrieved from http://www.pvh.com/brands_calvin_klein.aspx