3. âThe intrigues, they are incredibleâ
Christian Lacroix
âThe mind twister, it was incredible!â
Saatchi & Saatchi Advertising
4. AN EXCITING TASK
l A successful launch POSITIONING
l A CREATIVE IDEA that can work in any piece of communication
l A NAME that ties into the positioning
l A VISUAL IDENTITY for the brand
l Point of view on how the clothes should be BRANDED
l Recommendation on WHO to target, WHEN and in which MEDIA
5. IMMERSION IN THE FASHION WORLD
Virgin Qualitative Global Network
Research T---, Questionnaire
Desk Market
Research
F o c u s G r o u p s
- Positioning research
- Creative research
Opinion Former
Research
TGI Analysis
In-store
Research
6. THE POSITIONING SHOULD FALL OUT OF WHAT THE BRAND
HAS AND WHAT THE CONSUMER WANTS IN THIS MARKET
7. l What the Virgin brand is, and what it can offer
l What the consumer needs
l The Positioning
l The Creative Idea
l The Global implications
l The Implementation
l Why Saatchiâs ?
8. PEOPLE HAVE A VERY CLEAR VIEW OF WHAT THE
VIRGIN BRAND STANDS FOR
WHOitis.. .
WHATitis.. .
What it DOES. . .
HOW it does it. . .
RICHARD BRANSON
an entrepreneurial
consumersâ champion
challenges the conventional
challenges the establishment
enters established markets
and shakes them up
9. . ..AND CONSEQUENTLY THEY HAVE PRECONCEPTIONS ABOUT WHAT TO
EXPECT FROM VIRGIN CLOTHING
Challenge Coke Challenge Levis
l Launch into a big âcommodity market sector like Cola dominated by complacent
market leaders like Coke
l Offer high-quality, lower-priced, fun and consumer-friendly alternative
Source: Agency Qualitative Research
10. THEY DONâT EXPECT DESIGNER FASHION
Virgin clothes! God, I think of Richard Branson in his
woo//y jumpers, and I think - would I be seen wearing
them? Er...I donât think so, somehow!
Itâd be like Coke clothes, or McDonaldâs or something...
/
Source: Agency Qualitative Research
11. . ..AS RICHARD BRANSONâS VIRGIN HAS GROWN UP
BACK THEN...
Young
Audacious
British streetwise
Promoter of new talent
Music business brand
Challenger of the establishment
NOW
Big
Ubiquitous
âUser-friendlyâ
PEPS-to-airlines
megacorporation
c/w Microsoft
/tâs like Mick Jagger, incredibly young and hip for his age, but your
Granny likes him, for *@$! sake!
And would you want to dress like him?
Source: Agency / General
12. MOREOVER IN THE FASHION MARKET, VIRGIN WILL BE UP
AGAINST SOME SERIOUSLY TRENDY COMPETITION
DKNY
Diesel
Ralph Lauren
Ted Baker
YSL
Armani (diffusion)
Hilfiger
Red or Dead
Calvin Klein
Jigsaw
French Connection
l None of which, individually, are obvious corporate fat-cats a la
British Airways
13. BUT TOGETHER THEY FORM A COSY CARTEL
âIf you want to break into fashion . . . itâs pretty well
impossible. The established names have sewn up the
market, so new ones havenât got a prayer. How could
they? The guys. . .are so cosy with the stores there
isnât anything left for anyone new. The stores donât
want anything new anyway. They want reliable ideas
twice a year from the people they know, reliable ideas
they can promote and be sure of selling.â
(THE FASHION CONSPIRACY - Nicholas Coleridge)
14. AND ITâS NOT AS IF THERE IS AN OBVIOUS GAP IN THE MARKET
MENâS ALTERNATIVE FASHION/LOWER DESIGNER SHIRTS
go-
80"
70--
60--
w
.! 50--
aâ
40--
30--
20--
10"
Cl
n n
Ralph Lauren
Armani
Calvin Klein
Ted Baker
Jigsaw
Diesel
Red or Dead
GAP
Next
0 '
Quality
(= badge x product)
l Every price and quality position is covered
15. AND IT JUST SO HAPPENS THAT THE MARKET IS DRIVEN BY,
AND GEARED AROUND, PEOPLE WHO ARE TOO YOUNG TO
REMEMBER THE TIME WHEN VIRGIN WAS NEW AND STREETWISE
10 16 18 2 0 24 30 34 40 45 50+
-
u Mainstream followers 0 Style leaders, early adopters
0 Style updaters
l So whilst the bulk of volume is accounted for by 25-34 years olds,
brands in the alternative fashion / lower designer market are driven
in image and attitude by 18-24 year old culture
Source: TGI Analysis based, male buyer jeans f75+, shirts f50+
17. IN ITS ROOTS, VIRGIN DOES HAVE THE RIGHT VALUES AND
ATTITUDE TO TAP INTO THE 18-24 CULTURE
Challenger of the
establishment
British streetwise
Young
Promoter of new tale
Music business brand
!nt
In essence, they were FRESH
18. HOW CAN THESE VALUES RELATE TO PEOPLE WHO BUY
ALTERNATIVE / LOWER DESIGNER FASHION?
19. AN EMOTIONAL
BENEFIT for me. I look and fee/ really
good. People will notice me. well actually th&
Sex, status, happiness, here are quite expensive
but theyâre such good
quality. Triple-stitched,
you know. No-one else
does that.....
A RATIONAL
UNDERPINNING
OR
JUSTIFICATION
-I
EVERYONE WANTS CLOTHES THAT WILL âDO THINGSâ FOR THEM
AND IF THEYâRE CONVINCED THEY WILL, THEYâLL PAY A PREMIUM...PARTICULARLY IN THIS SECTOR
20. GETTING CLOTHES THAT âDO THINGSâ FOR YOU
IS A MATTER OF CATCHING THE RIGHT WAVE AT THE RIGHT TIME
Leading the wayLeading the way For example, the FLARESFor example, the FLARES REVIVAL...REVIVAL...
sore thumbsore thumb
Looking likeLooking like
Looking likeLooking like everyone elseeveryone else
everyone elseeveryone else used toused to
PEOPLE AVOID
YOU AT PARTIES -
PEOPLE SNOG YOU NO-ONE INVITES
AT PARTIES
~
YOU TO PARTIES
Itâs a precarious balance between STANDING OUT and FITTING IN
21. If people want clothes that âDO THINGSâ for them...
. ..and if that means striking the right balance at the right time
looking looking
ONE STEP AHEAD ACCEPTABLE
(Standing out) (fitting in)
What does the Virgin brand have to offer?
22. WHAT VIRGIN CAN OFFER
ONE STEP AHEAD: ACCEPTANCE:
Fresh new approach
to fashion
The reassurance that when
Virgin enters a new
market theyâll do it well
= clothes that will âdo somethingâ for you
24. CHALLENGING HAPPENING
f
A T T I T U D E a -
BE FRESH TEW / INNOVATIVE
STREETWISE CURRENCY
OF
YOUTH
Source: SSA Qualitative Research Groups
25. IN PRACTICE BEING FRESH MEANS
FRESH APPROACH
TO DESIGN
- e.g. a âHot Houseâ that
encourages new
British talent from a
wide variety of
disciplines
FRESH APPROACH TO
PRODUCTS
- e.g. clothes that
combine being one
step ahead with a
fresh functional twist
FRESHAPPROACHTO
MARKETING/
SPONSORSHIP
- shake-up fashion
advertising with a
fresh look
- e.g sponsor fresh
British bands rather
than established ones
FRESH APPROACH TO
SUPPLIERS I BUYERS
- build fresh
relationships that
produce more
satisfying results
FRESH APPROACH TO
RETAIL OFFERING
m a flag store
designed in a fresh
way
- e.g. interactive
window panels
26. POSITIONING
INSIGHT
HOW:
BENEFIT:
POSITIONING:
WHICH MEANS:
REASONS TO BELIEVE :
ATTITUDE:
Everyone wants clothes that will âdo somethingâ for them
Clothes âdo somethingâ by striking just the right balance between
attention-grabbing FRESHNESS and ACCEPTANCE by the people
who matter
Sex, status, confidence, popularity and just generally feeling
good
VIRGIN - BE FRESH (=freshness with a uniquely Virgin twist)
More than just a few new colours in this seasonâs collection
It means running the whole of the business, from design to
management to communication, in fresh ways.
For INNOVATION
- Fresh new clothing designs with a practical twist
For ACCEPTANCE
- Virgin-ness means that itâs the right kind of innovation
Bold, fresh, British and audaciously Virgin
29. KEY STRENGTHS OF THE IDEA
l Provides a FRESH look for a fashion brand
l Provocatively puts Virgin on the map as an alternative to the
current portfolio of offerings
l Encourages people to find out more about the âfresh bloodâ
l Broad enough to be a launch idea as well as an on-going platform
for all activity (from ads, to PR ideas, to reflecting the product
strategy, to endorsement by âfresh bloodâ talent; to materials
above and below line etc)
l Extols an attitude for the brand, in a way that has global appeal for
the long term . . .
l Shows off, the âbaggageâ of Virgin and re-energises the whole
Virgin offering . . .
30. âITâS TIME FOR FRESH BLOODâ: THE RESEARCH FINDINGS
THE LINE:
PERCEIVED MEANING
âChange the status quoâ
âIntroduce new waysâ
THE IDEA
General: new &
striking, edgy /
challenging
CONCERNSADDRESSED
IN DEVELOPMENT
Early versions of âRichard
Bransonâ ad were somewhat
confusing
First draft ads needed more
explanation to prove that
Virgin are fresh
Desire to see - at some stage
- the clothes themselves
THE RESEARCH PROVIDED A CLEAR STRATEGIC THUMBS-UP
AND GUIDELINES FOR EXECUTIONAL DEVELOPMENT
Source: Agency Focus Groups
31. THE IDEA HAS POTENTIAL TO TRANSLATE ACROSS CULTURES AND LANGUAGES
IN SOME OF THE COUNTRIES IT COULD RUN AS IS
The idea works very well
in Spanish and translates into
âNueva Sangreâ, as in, âLlega
una nueva sangreâ or âEs
tiempo de sangre nueva...â
In French, âenfin du sang neufâ
implies new talent/ideas, and
conveys dynamism and anti-
conformism, which the young
people will like very much
All the indicators are
it would work well here
in the states, especially
amongst teens/Generation I
The sense of the concept,
in Italian, would be expressed
as âtora di cambiare pelleâ
In Germany the concept
would be strong amongst
the young, trendy, alternative
crowd. The broader set of
adults may be less comfortable
with such a name
Source: Saatchi Network questionnaire
32. AND BEING FRESH IN THE DESIGNER MARKET WILL MAKE A
BIG PAYMENT INTO THE âBANKâ OF BRAND YOUTHFULNESS
AND ORIGINALITY
Brand Bank 198O's/9O's
70âs
Music -b
business
âMe-tooâ
soft drinks
90âs new
millennium
Virgin
Clothing
35. FASHION CLUB : MEDIA CLUB
Target audience attitude dictates media selection
- Style press dominates
- Selective media usage - parts of TV, cinema, outdoor
Scale of spending : Ralph Lauren
Diesel
GAP
Calvin Klein
DKNY
YSL
Lacoste
(Levis
fl.lm
f 0.7m
f 0.6m
f0.5m 9 f5m (inc. fragrances)
f 0.4m
f 0.2m
fO.lm
f3.lm)
36. BALANCING ACT
l We want to be fresh
. . . WHILST
l We want to be accepted by the same crowd
l We want to reach the same people
- Consumer
I Trade
SAME MEDIA, FRESH MEDIA USAGE
37. SAME MEDIA BUT FRESH MEDIA USAGE
l New to an established industry. We need
l We are Virgin : Challenge the accepted
l Need to give people a reason to put Virgin on
their mental shopping list
39. TRADE
LAUNCH
TEASER
TRADE
LAUNCH
CONSUMER
LAUNCH
CONSUMER
LAUNCH
USE MEDIA TO ENDORSE OUR PROPOSITION
Trade Press
Poster
Projections/Stunts
Consumer Press
Bound on supplement . ..in association with
Selected high profile sites
âFreshâ buildings/exhibitions
âAlternativeâ catwalk
Bound on supplements
Pop-upâs / Fold outs
Colour DPS
Public awareness BUT
Private in-the-know
Associates us with...
. ..ln association with
Stature/showcase
40. TRADE LAUNCH
R E Q U I R E M E N T = Trade press endorsement: need trade approval
and buyers to buy
SOLUTION = Bound on Virgin âFreshâ magazine supplement
In association with . . . Draperâs Record, Fashion Weekly = endorsement
Reference point to excite and inform
Showcase clothing range
~
VIRGIN âADDINGâ TO THE INDUSTRY
41. FRESH: A TEASER CAMPAIGN
POSTERS
- Teaser for fresh blood
- Creates public awareness fuelling PR
- Private in-the-know (only answer in the ârightâ press
titles)
PROJECTIONS AND STUNTS
- On to buildings made by / related to fresh blood theme
- Alternative âcatwalkâ
42. FRESH USE OF CONSUMER PRESS
1. Bound-on to fashion magazines: âFreshâ supplement
I Enhance trade launch activity
- Consumer (and trade again)
2. Pop-up / fold out adâs
Bring creative idea to life
3. Colour DPS to provide stature and showcase product
43. EXTEND OUR POSITIONING BY ENDORSING FRESH BLOOD
- âSupportâ fresh talent
TALENT - Street credibility
- Maximise association
1 0
Time Out / The Guide
Style magazines âinâ
things features
- Individually selected,
BROADCAST focusing on fresh blood
PRODUCT - New talent, new ideas, new
ways of doing things 1
0
The White Room
Eurotrash
Trainspotting
44. FRESH TALENT
l Use media to âsupportâ fresh talent in comedy, film, arts etc.
l âWhatâs happeningâ features - listings and tips on future âinâ
things
l Street credibility with the right audience (opinion formers I style
leaders)
l Maximise association with sponsorship of relevant listings in,
Time Out, âThe Guideâ - Guardian, and style magazine features
45. FRESH BROADCAST PRODUCT
Individually select âFresh bloodâ broadcast events on C4 and cinema,
and support through sponsorship/advertising
l Featuring new music talent âThe White Roomâ
l New British Film âTrainspottingâ
l Fresh Fashion Programme âEurotrashâ
(Brief is new talent, new ideas, new ways of doing things)
47. MEDIA PLAN
YEAR TASK MEDIA BUDGET f
Trade
Trade press, posters 50,000
1 Launch Press, posters
+
600,000
Drip Press 200,000
2
Drip
To
Flow
Press, posters
Cinema, TV
2,300,OOO
3 Flow Press, posters,
cinema, TV
3,200,OOO
48. AN EXCITING TASK
l Positioning:
l Name:
l Creative Idea:
l Visual Identity:
l Branding:
l Who?:
l When?:
BE FRESH
ITâS TIME FOR FRESH BLOOD
VIRGIN FB
A FRESH LOOK FOR A FRESH APPROACH
VIRGIN FB
APPEAL TO ATTITUDE OF 18-24, COVER
BUYING POWER OF 16-34 YEAR OLDS
FRESH BUT TAKE TEMPERATURE AND
TURN VALVE.. ,
. . . SO WHY US?
50. WHY SAATCHI & SAATCHI ADVERTISING?
l Our passion is to produce extraordinary ideas which transform our
Clientsâ businesses, brands and reputations
l We have a group system which gives us the hunger and dedication of
a small agency, enabling us to work in close partnership with our
Clients, whilst maintaining all the resources of a large agency
l 72% of our Clients spend less than f3m p.a
l Cut through creative work that makes budgets sweat
l A major global player with one of the worldâs largest networks
l Media muscle of Zenith (UK and globally)
ATTITUDE OF âNOTHING IS IMPOSSIBLEâ
51. REMUNERATION PRINCIPLES
l Fee based - actual time, including overheads (IPA standards) and
fair mark-up
I
constant monitoring of Client needs
I
can be flexible over time
ULTIMATELY, DEPENDENT ON SERVICES REQUIRED
52. SUMMARY
0
0
l
The positioning will fall out of what the brand has and what the consumer wants
In its roots, Virgin has a powerful essence - it takes a Fresh, challenging approach to
ventures
Consumers want clothes that âdo things for themâ, by striking the right balance of looking
one step ahead and being acceptable
Virgin can do this, because Virgin offers a fresh approach to fashion, with the reassurance
that Virgin do things right... FRESHNESS IN A UNIQUELY VIRGIN WAY
The positioning therefore is Virgin BE FRESH, in everything (its attitude, its clothes, its
marketing . . .)
ITS TIME FOR FRESH BLOOD is a powerful encapsulation of the idea that heralds in the
new fresh talent that Virgin bring to fashion and ensures people want to wear VIRGIN FB
It is an idea that has global potential, and an idea that could help rekindle the brandâs
youthful, root assets
Saatchi & Saatchi is full of fresh talent, an attitude of nothing is impossible and a belief in
partnerships to win!
VIRGIN. ITS TIME FOR FRESH BLOOD (AND SAATCHIâS!)
53. 0
Appendix 1
0
Appendix 2
0
Appendix 3
0
Appendix 4
0
Appendix 5
0
Appendix 6
0
Appendix 7
0
Appendix 8
0
Appendix 9
0
Appendix 10
0
Appendix 11
0
Appendix 12
0
Appendix 13
0
Aunendix 14
Draft communication plan
Timings
Market Analysis
Qualitative European Network survey
Store Check
Qualitative positioning research
Competitive advertising spends
TGI Data
Fashion quotes
Influence of British music
Internet
The âHot Houseâ
Brief analysis of Fashion design houses
Sources
56. DRAFT COMMlJNICATION PLAN
OBJECTWE
. Raise awareness of
venture and create a
positive trade
environment
. Ensure opinion farmers
are supportive
. Create a splash
l Create a desire amongst
buyers to place orders
l Raise awareness of
clothes
. Build a positive mindset
. Generate interest
. Further raise awareness
of clothes
. Create a desire for the
clothes
. Put on shopping map
l Buy clothes
. Raise awareness of
clothes
. Build a positive mindset
l Generate interest
. Maintain consumer
momentum
. To aeate a desire to buy
clothes
D Support the venture
TIME PERIOD PROMOTION NM ANTICIPATED CONSUMER/ TRADE
RESPONSE
TRADE
PRE-LAUNCH
(ApnuMayl June â97)
TRADE
LAUNCH
(July â97)
CONSUMER
ANTICIPATION
(July - Ott â97)
CONSUMER
PRE LAUNCH
(Ott â97 - Dee â97)
CONSUMER
LAUNCH
(Jan â98)
INTERNATIONAL
ANTICIPATION
(Spring â98)
SHORT TERM
TACTICAL UK
(Spring â98)
INTERNATIONAL
PRE LAUNCH
(Autumn â98)
. PR . 7 thought virgin were launching jeansâ
. Trade Press l âI canât believe theyâre launching
. Posters designer ciothes. I wonder whoâs
designing them? Not Branson, I hopeâ
. âHey, the âHot Houseâ sounds great. Iâd
love to be in itâ
. PR . Wow. I never expected such a fresh
l Shows look from Virginâ
l Trade Press l âI think this might do well. The clothes
have a fresh attitudeâ
. âI love the whole concept I must place
an ordef
. Posters . âWhatâs all this I keep hearing about
. PR Virgin and clothes. I wonder when they
are coming out. â
. Posters . âI canât imagine Richard Branson
. Press/PR knowing about clothesâ
. Radio . âAil my friends are talking about itâ
. âIt sounds interestingâ
0 7 still would like to know moreâ
. Posters . âSo thatâs what theyâre like. They are
l Press much better #an I expectedâ
. Radio/stunts l 9 love the way Virgin an? always doing
l Cinema things difTerent/y. â
. âHow cool. Virgin are sponsoring young
B&ish designers. Itâs about time
someone did. n
. 7âm going to have a look on my next
shopping tipâ
. âYou should see these great Vitgin
clothes Iâve bought they got a really
fresh attitudeâ
. PR . Wgin are launching a clothing range I
. Press wonder what it will be likeâ
. 7 want to know moreâ
. Cinema . âAlways doing things differentlyâ
. Press
. Radio
. Posters . âAll my friends are talking about itâ
. Press . âIt sounds interestingâ
. Cinema/N l 4 canât wait till it launchesâ
. Radio
58. VIRGIN CLOTHING
CREATIVE AND PRODUCTION PROCESS
NEW PRESS AND POSTER CAMPAIGN (UK)
I week
I week
I week
I week
Brief and campaign requirements agreed
0
Creative work researched
0
Research debrief
Q
Revised work
I week
4 weeks
4 weeks
Agree estimate
0
Production
0
Lead deadlines (monthlies)
59. I week
I week
I week
I week
1 week
I week
8 weeks
VIRGIN CLOTHING
PRODUCTION PROCESS
NEW TV / CINEMA CAMPAIGN (UK)
Brief and campaign requirements agreed
0
Creative work researched
0
Research debrief
0
Revised work
0
Full production estimate
0
Agree production estimate
0
TV production
0
On air
61. l Focus on the UK
Total Category Analysis
I Designer Market
Menswear Market
Overall Trends
62. UK CLOTHING RETAIL SECTOR
SALES VALUE / VOLUME GROWTH
- Value growth
- Volume growth
I I I I
I I I I t
1993 1994 1995 1996 1997
Year
l The sector has gradually picked up in 1996
Source : UK Retail Report 1996
63. ANALYSIS OF GROWTH - UK
l 1995 represented a trough in the economic cycle
l Growth in 1993 was buoyed up by government borrowing
spiralling out of control
l Tax rises in 1994 and 1995 to curb this public deficit deflated that
fragile boomlet bringing about last yearâs economic standstill
1996 RECOVERY IS BASED ON MUCH FIRMER FOUNDATIONS
Source : Verdict Retail Conference 1996
64. THE FOUNDATIONS FOR THIS BOOM ARE IN PLACE
l Improving employment prospects
l Raising real incomes of those in work
l Low interest rates
l A recovery in the housing market
FEEL GOOD FACTOR
Source : Verdict Retail Conference 1996
65. UK CLOTHING AND FOOTVVEAR PRICE INDEX
124
123
-m- 1994
- 1995
+ 1996
II!!--
114 I I I I I I I II I II I I I I I I I I t
J F M A M J J A S 0 N D
Months
l In Nov â96, real year on year increase in price, likely that coupled
with volume growth could lead to spectacular performances in â97
Source : UK Retail Report no 76 Dee â96 page 64
66. UK SALES VS NET MARGIN % 1996
SALES A
80 -â
Hennes
60 -. NET MARGIN
I I I I I I I I I I I I I I
0 2 4 6 8 10 12 40 -. 16 18 20 22 24 26 28
I
Emporio Armani
Versace
0
Designers can charge in excess of 20% margin vs high street 9% margin
Source : UK Retail Report no 76
67. UK RETAIL SALES OF MENSWEAR BY PRODUCT SECTOR
700
650
600
400
350
300 i
I I II I I t
1989 1990 1991
Year
1992 1993
l Major trend in the menswear market is that growth of the informal
market (leisurewear, other trousers, jeans) has increased as
opposed to a decline in formal wear (suits)
Source : Retail Monitor June â94
68. l After a decline in â95 the clothing sector started to pick up in â96
l First real year on year increase in price in Nov â96
l Designers can have an excess of 20% margin compared to 9%
highstreet
l The menswear market is becoming less formal
THE FORECAST IS PROMISING FOR A CASUAL WEAR DESIGNER
RANGE BUT. . . . .
69. l The clothing market has suffered a lack of new fashion trends
since the recession set in
l The risk averseness of the main players has resulted in a lack of
excitement on the high street
TIME FOR A SHAKE UP?
Source : Verdict Report Feb â96
70. Appendix 4 - Qualitative European Network Survey
71. QUALITATIVE CONSUMER RESEARCH FOR VIRGIN
FEBRUARY 1997
OBJECTIVE:- To analyse consumer perceptions of the Virgin brand across Europe
METHODOLOGY
Saatchi & Saatchi staff were surveyed in âParisâ, âMilanâ, âMadridâ, âNew Yorkâ,
âTokyoâ, âAthensâ and âFrankfurtâ.
They were asked the following questions:-
What do you think of the Virgin brand?
What does it stand for?
Which country does it represent?
What part of the Virgin brand do you like?
What they think of British culture in general?
who the major fashion players in your market?
TOP LINE FINDINGS
Generally the Virgin brand was associated with the music industry and Virgin
âMegastoresâ there was only a back of mind awareness of Virgin airlines.
The values associated with Virgin were âyoungâ, âbigâ, âvalue for moneyâ, âtrendyâ,
âpowerfulâ, ânewâ.
The brand was very much seen as a âVirginâ brand rather than a company set up
by Richard Branson. Spontaneous top of mind awareness of Richard Branson
was very low apart from in New York).
The company was sometimes seen as British, often as being American in origin,
this could be associated with the low awareness of Richard Branson and his
origins.
British culture was seen to be very appealing, British bands, particularly âSpice
ginsâ, âOasisâ and âBlurâ were very popular.
British fashion was seen to be divided into two distinct streams, elegant classic
English look (tweed jacket etc.) and extreme/ hip/controversial.
British culture in general was seen to be up front and trend setting.
v
74. PRICING STRATEGIES
f Womenâs Shirt
Diesel 60
Red or Dead 40
CK Jeans 75
DKNY 60
Ralph Lauren 150
Armani Jeans 50
Womenâs
Trousers
(Jeans)
60
40
65
50
200
90
Womenâs Jacket Womenâs Jumper Womenâs T-Shirt
(Sweatshirt)
100 70 40
n/a 40 20
600 80 30
175 90 25
700 200 65
n/a 80 45
75. MENâS SHIRTS - FASHION ALTERNATIVE / LOWER DESIGNER
(Admap)
go-
80 --
70 --
w 6o
3
âC 50
e
40 -- 0
30 -- B n
20 --
10â
0
Quality
Ralph Lauren
0 Armani
CKI
m Ted Baker
I Jigsaw
H Diesel
0 Red or Dead
n GA?
n Next
76. FASHION ALTERNATIVE / LOWER DESIGNER MARKET
POSITIONING
(Admap)
Price
q
n cl n
Ralph Lauren
Calvin Klein
n Lacoste
c l YSL
I Hilfiger
m Ted Baker
0 Diesel
n Chevignon
w Red or Dead
Quality
78. CONSUMER QUALITATIVE RESEARCH
Objective: To analyse consumer perception of
i) The clothing market
ii) Virgin
Methodology: 3 focus groups (8 consumers per group)
Sample: Male and female, aged 20-30
Restrictions: Saatchi & Saatchi employees
Location: The Hub
Date: 27.02.97
79. WHERE FASHION COMES FROM: THE PERCEPTION
FRENCH
Chic, unattainable,
grown-up
ITALIAN
Glitzy, flashy
Designer
Style
Top-down
USA designers
ldentikit classics E&&/j&&
style
FASHION
Street
Bottom-up
USA Tribes
big, influential
âlooksâ
BRITISH
Eclectic, varied,
fast-moving
l UK fashion seen as young, eclectic, quirky âstreetâ style
80. THE ROLE OF DESIGNER LABELS
I More confident I
Less confident
I I I I
I I I I
LOGO
1 Subtle styling details 1
0
âDesignerâ identification (label or otherwise) = display of taste,
status, money
l Less confident (esp. male) wearers need bigger, better-known,
more obviously expensive logos
81. PERCEPTIONS OF VIRGIN
ROOTS ENTRY CREDENTIALS IN NEW MARKETS CURRENT STATUS
Young, audacious
Entrepreneurial
Risk-taking
Music business-
based
Challenger
Cartel-buster
Peopleâs champion
Anti-Establishment
Big
Corporate
Ubiquitous
âUser-friendlyâ
c/w Microsoft
l Dominated by personality of Richard Branson
l Seen as offering goods to match the industry leaders at a lower price
and with a younger, more fun image
l In recent years a lot of withdrawals have been made from the âbankâ of
brand goodwill (making pensions seem trendy etc.) with few new deposits
82. VIRGIN IN THE CLOTHING MARKET
l The few global megacorporations (Levis, Nike) and their products
are well-liked and respected by consumers
l Little perceived need for cheaper âme-too copies a /a Virgin Cola,
Vodka
l Wooly-jumper-wearing Branson seen as having little style expertise
l Virgin clothing expected to be jeans and/or middle-of-the-road
leisurewear
l Cachet of the brand expected to be on a par with Coke leisurewear,
just above McDonaldâs, or Microsoft
84. COMPETITIVE SET MEDIA SPENDS: UK 1996
MANUFACTURERS
Levis
fOO0 RETAILERS fOO0
3,100
Ralph Lauren
Diesel
DKNY
Calvin Klein
1,100 Gap
700 Jigsaw
450 French Connection
400 (+ f4.5m fragrance)
YSL 160
Lacoste
500
120
170
Source: MMS
85. COMPETITIVE SET SPEND BY PRESS TITLE - 1996
TITLE TOTAL POUNDS
1. Vogue 582,846
2. ES Magazine 394,630
3. Elle 365,570
4. Play boy 359,268
5. Marie Claire 325,347
6. GQ 230,854
7. The Face 165,331
8. Cosmopolitan 164,450
9. Esquire 150,505
10. Harpers & Queen 144,111
11. Guardian 119,520
12. Menâs Health (Launch 2195) 112,080
13. Sky 108,565
14. Vanity Fair 107,976
15. Tatler 106,976
16. Arena 95,335
17. Telegraph Magazine 72,600
18. FHM 59,805
19. Times 57,776
20. Wired (Launch 4/95) 47,250
Source: MMS
87. MALE & FEMALE FASHION SPENDS
Torals
ngc grâllâ I ?I- 19
ngcâ gr-clllll 20-24
;1gc jyoup 2 5 -34
;IIyâ f:IââIp 35 44
iIj!Câ !!1âOll~) 45 â54
;l[y ~yollp 55 -64
;gc gl,rc~p 65.99
S1âX . IllCll
sex . âolllc11
social class ;I
s(Kl;ll cl;1s!i I)
s<1ci;kl class c I x
serial ClilSS C2X
stri;il class tl
<oci;rl class t*
s;( lIâI(( 1,: I(;1 âMl
Wollwllâs Spd
on I+dlioi
Ave. per year Total LâOOOs
f;311 &6,925,195
c343 C554,962
C367 L646,033
C366 .ct ,595,534
C356 Cl,331,251
C356 Cl,244,I 18
C7.68 C720,60 I
Cl82 C832,695
n/a n/a
c31 I C6,925,195
C448 C249, I 14
C42 I C I ,703,329
C328 C2,121,964
C293 Cl ,356,497
C253 C926, I45
Cl97 C568, I46
woITlcIlâs Spc!lTd on
Mcuâs Fasl~ion
Ave. per year Total COOOs
L64 .E979,890
L49 5;39,742
L58 6;72,142
L70 C240,540
.c7 3 C223,5?6
c74 C20 I ,620
C59 ClO8,2 13
C42 594,038
n/a n/a
C64 C979,890
C85 C34,696
.C84 C248,695
L69 C298, IO3
C60 C2 13,985
c49 Cl27,51 I
c39 C56,90 I
MCIlâS Spd
cm hshion
Ave. per year Total &âOOOs
6;251 &5,135,170
C2-77 C52 I ,93 I
L322 C503,116
C288 C I ,260,073
C280 .C I ,0.36,4 34
C26 I C880,759
Cl95 c490,97 I
Cl44 C44 1,887
c251 c5,135,170
II/i1 Illa
C342 C235,334
C306 C 1,348, I20
C265 cr,401,914
C23l Ci,l66,377
S.206 Cb87,930
Cl72 C295,494
89. .â :r,, .:-t.;
âL+j
The Fashion Conspiracy
Nicholas Coleridge
âScores of explanations for the English malaise . . . England cannot deliver . . . .If only a
fraction of the ingenuity we devote to our national soul-searching could be channelled into
finding a cure, then perhaps recovery might be attainable after all.â
âEngland has a kamikaze attitude to designers. For two years youâre praised by the press
and turned into celebrities, then you start getting knocked . . . . theyâre always out for the
new name and drop the old one. But in America thereâs a structure there - they build those
guys up season after season - Calvin Klein, Ralph Lauren -theyâre not innovative designers
any more, but they donât get slagged.â
Scott Crolla, designer
âThereâs the English thoroughbred look, which of course doesnât travel we.. . . . .And the
other side is imaginative, exuberant, eccentric young London. One so longs for the two
sides to come together . . .â
Suzy Menkes
âThe American stores are so much better than we are at making it easy and attractive to
buy; there fittings rooms much more resemble the dressing rooms their customers have at
home, rather than the little cubicle with a bit of curtain across that you get here. Where do
you hang it all? Where do you put your own things?â
Jean Muir
âFrankly, London isnât innovative, any more than our supposedly incredible street style is
innovative . . . The egos of those people are really staggering, especially the hat people.
Half the things theyâre doing are like Valentino twenty years ago but theyâre too ignorant to
know it. Their heros are Body Map and Galliano but itâs all been said and done by Vivienne
Westwoodâ
Scott Crolla
âOn the other hand, the British never quite understood what weâve got here. Its like British
pop music all over again. You have to go abroad to realise weâre bloody influential.â
Katharine Hamnett
90. âThey are visual snobs, very cliquey and disapproving of outsiders. They talk about other
people being elitist, but in their own way theyâre the worst offenders: thereâs a fanaticism
about them. I would call them serious style victims, to the extent that they seek out visual
heresies. For the Joseph set there is only one cigarette lighter worth having ( a Maurman),
one watch (a Heuer), one cappuccino machine ( a Pavoni), one kind of dining table
(Sheridan Coakley) and three or four designers ( Azzedine Alaia, Richmond-Cornejo, Yohji
Yamamoto, Joseph Tricot).
Rifat Ozbek - studied to be an architect
âHe became disenchanted with architecture at much the same time that he became doubtful
he could design a building that would stand up and stay standing. Fashion design, with its
advantage of covering rather than creating a structure, attracted him.â
âThe poor in Britain are better dressed than the rich. The poor dress well as a reaction to
filthy British housing. They dress well . . . because they need something to survive.â
Katharine Hamnett
âKatharine Hamnett recent collections have been rather sexy, with emphasis on the
cleavage and nipples.â
âItâs the fabric people who bankrolled Armani and Versace and Ferre,â say designers in
London, with a tinge of envy in their voices. âThe factories pay for half - more than half - of
these advertisementsâ . . .
âIt is Milanâs success rate that inspires conspiracy theories. To the fashion mind there is
something unfair about the fabric supplier and the factory owner and the designer all getting
together, and comparing notes and devising a common strategyâ
âThe Italian conspiracy is more than a collusion of style. The ingenuity with which designer
labels were funded and marketed revolutionised the fashion industryâs view of itself. It
showed that rival stars to Yves Saint Laurent could actually be created in a very short time,
if you invested heavily in production and advertising.â
âIt was the Milanese who invented the systematic dealing off of editorial photographs
against pages of advertising. This means that when Soprani or Fendi book 80 advertising
sites during the year, they expect their clothes to be shown forty times in fashion stories
devised by the magazinesâ editors.â
âIn the court of Valentino, the preferred woman is rich and international and far too busy
travelling to trouble with a career.â
91. âSexuality is always an amorphous concept in fashion, since the line between what is and
what is not considered sexy is invisible. When Versace talks about his sequinned tops he
describes them as sexy, but then so does Valentino about a fundamentally different
silhouette. Calvin Klein also hitches his wagon to sexuality but with clothes so antithetic that
is astonishing they should all be pitching for the same market.
The truth is that virtually any garment can be described as sexy since sexuality is in the eye
of the designer.â
Big, Established Designers Vs Smaller, Newer Designers
Yves Saint Laurent of Galliano and McQueen:
âWhat I saw on the runway terrified me. It was a ridiculous spectacle, which would have
been more in keeping at a rock concertâ
âPeople donât go to Galliano to buy his clothes anymore, they only want the perfume and
accessoriesâ
âNo-one since Coca Chanel and myself has shown the slightest talentâ
Karl Lagerfield response to above:
âYou need to be up to date in this job. Yves St Laurent should give up.â
The Guardian 0502.97
âThe British have a name for the new hip spirit that is giving their country a reprise of the
swinging Sixties. They call it âcool Britanniaâ.
Suzie Menkes, International Herald Tribune
Armani âfashion is deadâ
Vivienne Westwood âfashion is a barometer of culture. If there is no fashion, there is not
cultureâ
Betty Jackson âThe best thing about fashion is its ability to reinvent itselfâ
Jon Bon Jovi âFashion and rockânâroll are joined at the hip. It all started when Elvis
dressed the youth of America and Beatles suits swept the worldâ
93. BRITISH BANDS - EXAMPLES OF SUCCESS IN FOREIGN
CHARTS (TOP 15) 08.02.97
SPICE GIRLS - New Zealand, Eurochart, Malaysia,
France, Australia, Netherlands,
Ireland
JAMIROQUAI - Italy, New Zealand
PRODIGY Switzerland, Belgium, Italy, Canada
94. BRITISH MUSIC IS VERY POPULAR AROUND THE WORLD
ALL MUSIC SOLD IN EUROPE ALL MUSIC SOLD WORLDWIDE
âFashion and rock ânâ roll are joined at the hip. It all started when Elvis
dressed the youth of America and Beatles suits swept the worldâ
Jon Bon Jovi : Sunday Times 09.02.92
97. OPPORTUNITY FOR VIRGIN CLOTHING ON THE NET
Some suggestions...
1) Fashion Competition
- The Virgin Clothing Website could encourage visitors to send
in their fashion designs / ideas
- The competition winners would become part of the âFresh
Bloodâ having their designs produced and sold worldwide
2) Web Casting
- Virgin Clothing to sponsor new bands / live music events via
the Web
- Visitors could listen to the music via audio transmission /
interview band members / find out more about bands etc
- Visitors could also download sound files after the event
99. NUMBER OF COMMERCIAL WEB SITES
l Increasing use of web for commercial purposes
l More and more important to brand sites properly
l Emergence of commercial âtop layerâ to web
100. I
NUMBER OF HOSTS
(Discrete Computers connected to the Internet)
NOW
2000
WORLDWIDE USA
12.9 Mn 8.2 Mn
100 Mn 65 Mn
EUROPE
2.4 Mn
20 Mn
101. NUMBER OF HOSTS
(Discrete Computers connected to the Internet)
l Massive increase in use of the Internet
l Greater use of the web and hence commercial sites
108. USERS BY EARNINGS
l Trend away from the Internet being for the elite
l Maturation of the market place
109. WHAT IS THE WEB USED FOR?
Browsing
Entertainment
Education
Work
Research
Shopping
WORLDWIDE USA EUROPE
(0OO (0OO (4OO
77.1 78.3 66.8
63.8 65.1 52.1
53.3 55.1 35.9
50.1 51.4 50.3
41.6 42.6 38.8
18.3 20.5 11.8
110. MAIN LIMITING FACTORS
l Speed of access
l Not being able to find specific information
l Not being able to organise information gathered
l Not being able to find a visited page a second time
l Unable to visualise the web
111. SOME INTERESTING FACTS
l 37% of users say they use the web instead of watching TV
l 46% of users use the web up to 4 times a day
l The major reason for people not registering with a site is not being
told how the information is going to be used
l Over half of all users gather information about hardware or
software via the web
112. WHAT MAKES A SUCCESSFUL SITE?
CRITERIA REASON
High quality, efficient use of graphics
user enjoyment of a site but
Graphics add substantially to
download times major problem
with web
Well targeted content No one wants to wade through
reams of unnecessary
information
Dynamic, up to date content A successful site is based on
repeat visits which means a
loyal audience
113. CONCLUSIONS
l Maturing Market
l Serious Commercial Interest
l Better Infrastructure
l Importance of branding
l Changing business models
115. WHAT WOULD THE âHOT HOUSEâ DO FOR THE VIRGIN BRAND?
l Give credibility to the brand
l Enable Virgin to build on core values of championing new talent
l Virgin would effectively set up a design label, which would
operate like the Virgin record label
l Take a âfreshâ look at the clothes to give consumers clothes they
want
116. OBJECTIVES OF THE âHOT HOUSEâ
l To provide a hip / fresh view for the brand
l To promote the brand among their peers
l To design new, fresh clothes
118. WHAT IS THE âHOT HOUSEâ?
l Consists of âfreshâ new British talent
l Selected by Lewis Chard and potentially endorsed by
Richard Branson
l Core designers remain long term
l Other groups renewed every couple of years
119. THE LOGISTICS
l Select ânewâ talent from college
fashion shows
l Source new talent from other
design fields
l Confirm committee
l Launch show piece items
Late Feb â97
Early March â97
Mid March â97
July â97
120. Appendix 13 - Brief Analysis of Fashion Design Houses
121. QUALITATIVE CONSUMER RESEARCH FOR VIRGIN
FEBRUARY 1997
OBJECTIVE:- To analyse consumer perceptions of the Virgin brand across Europe
METHODOLOGY
Saatchi & Saatchi staff were surveyed in âParisâ, âMilanâ, âMadridâ, âNew Yorkâ,
âTokyoâ, âAthensâ and âFrankfurtâ.
They were asked the following questions:-
What do you think of the Virgin brand?
What does it stand for?
Which country does it represent?
What part of the Virgin brand do you like?
What they think of British culture in general?
Who the major fashion players in your market?
TOP LINE FINDINGS
Generally the Virgin brand was associated with the music industry and Virgin
âMegastoresâ there was only a back of mind awareness of Virgin airlines.
The values associated with Virgin were âyoungâ, âbigâ, âvalue for moneyâ, âtrendyâ,
âpowerfulâ, ânewâ.
The brand was very much seen as a âVirginâ brand rather than a company set up
by Richard Branson. Spontaneous top of mind awareness of Richard Branson
was very low apart from in New York).
The company was sometimes seen as British, often as being American in origin,
this could be associated with the low awareness of Richard Branson and his
origins.
British culture was seen to be very appealing, British bands, particularly âSpice
girlsâ, âOasisâ and âBlurâ were very popular.
British fashion was seen to be divided into two distinct streams, elegant classic
English look (tweed jacket etc.) and extreme/ hip/controversial.
British culture in general was seen to be up front and trend setting.
123. SOURCES
BOOKS
l Fashion Marketing Janet Bohdanowicz and Liz Clamp
l Fashion Marketing Mike Easey
l Fashion Conspiracy Nicholas Coleridge
l Qualitative Positioning Research
l Qualitative Creative Research
l Qualitative Network Research
124. SOURCES CONTâD
RETAIL REPORTS AND DATA
l Verdict Retail Conference
l UK Retail Report No. 76
l Verdict Clothing Retailers
l Mintel: - Womenswear
l Mintel: - Menswear
l TGI Data
l Register Meal
October 1996
December 1996
February 1996
December 1996
June 1995
125. SOURCES CONTâD
CONTACTS
Sam de Teran
Editor of Vogue
Liz Faber, Predictions in Fashion Trends
An many unnamed fashion writers, DJâs and funky people!