Marc Jacobs for Forever 21
INTRODUCTION
Arguably one of the most influential designers in the world, Marc Jacobs, has a talent for
pointing audiences and buyers towards trends to come. A design chameleon, he frequently sources a
particular theme or style only to abandon it entirely the following season, just as the rest of the
world is getting on board the train.
As the Forever 21 shopper is style conscious and trend-savvy a collaboration between the
talent and fashion forwardness of Marc Jacobs’ designs and Forever 21, one of the United States
biggest sources for the most current fashions at the greatest value, is something that would become
a phenomenon in the fashion world.
Other competitors have formed similar collaborations, Versace, famed high-end Italian
luxury label, has collaborated on a collection for H&M, which has proved to be extremely
successful. H&M has now announced another designer collaboration with widely celebrated Italian
label, Marni. Additionally former Christian Dior Creative Director, John Galliano, is reportedly in
talks for a partnership Zara, another major competitor.
PRINT ADS
1) Forever 21
Intended Target Market :Forever 21 ranges from teens to early thirties seeking to keep up with
the latest styles on the runway at reasonable prices. Their print ad shows that they are young, fun
and fashionable. Their marketing tactics are staying trendy and up to date. They are able to take
what’s on the runway and turn it into a younger, more affordable version.
2) H&M
Intended Target Market: H&M has a keen understanding of its target market, which is the low
price and high fashion end of clothing. The majority of its customers are young women in there
teens to early thirties. H&M’s fashionable collections are renewed frequently. Their business
concept is to offer fashion and quality at the best price. New items are offered to customers’
everyday. From the print ad you can see that H&M is trying to target young women who are
sophisticated but still a little quirky and fun. By having the same girl in two different poses show
H&M’s versatility in clothing.
3) Zara
Intended Target Market: Zara’s target market is young, price-conscious, and highly sensitive to
the latest fashion trends. They have an advantage over traditional retailers because they do not
define their target by segmenting ages and lifestyles giving them a much broader market. Zara has
an immediate reaction to trends. Zara can be considered fast high fashion for modest prices. New
products are introduced twice a week. Zara uses a black and white print ad to show more of a
classic sophisticated look. The same girl in the two different outfits shows their variety in clothes
and variety in style.
INTERNET
Forever 21’s website homepage is loaded with valuable information and many options to help the
consumer navigate during their online shopping experience. Forever21 wants accentuate the fact
that they aren’t just providing you with products but also a service. Some of the services that appeal
to their consumers are things like track order and store locator help options. They also make it easy
to locate a particular item by keyword, making the items you have in your shopping cart visible,
and separating their merchandise into categories. Most of the messages on the homepage are in the
form of print advertisements that alert females of up-to-date must have trend alerts and seasonal
styles, special sales. One of their strategies to maximize revenue and online shopping orders is by
offering free shipping on orders that exceeds a certain amount and offering promotions if they sign
up for their newsletter. The homepage can also lead you to their social media networking sites for
more. Overall Forever21 uses young fresh ideas, bright colors, beautiful playful girls, and
irresistible daily limited offers on their homepage to trap their buyer into looking at the rest of their
merchandise. For the most part their web market positioning, strategies, and messages are
consistent with their print ads.
Zara’s homepage is a very minimalistic, sophisticated and straightforward homepage.
Actually the first thing you see before going on the homepage is a page that lists all of Zara’s
locations and you have the option to chose which country you will be ordering from; this option
also determines the currency and language the homepage will be in. Zara’s message from their
homepage is quality over quantity. Their strategy is to provide broader less specific categories
(Man, Women, Kids) to make navigating an easy-stress free simple process. One of their main
homepage marketing strategy is providing a look book each season for personally selected items
and outfits. Zara subtlety includes their media marketing with features such as “Dear New York,”
People and Films. Like their clothes and their print ads, their homepage is very must consistent with
their Brands upper-class demeanor and high-end marketing mission.
H&M has a very specific and unique homepage from the other two competitors because it does not
offer a shopping online feature. Their webpage is purely informative as a reference page for their
consumers to be up to date with special promotions and events. H&M’s homepage is a layout of their
print ads and active campaigns. For example on their web page, as in the store, commercial, and
advertisement billboards you can preview their latest Conscious Collection which contains their message
and mission towards a “more sustainable fashionable future.” In the same aspect their homepage
advertises their Fashion Against Aids campaign. H&M’s more recent IMC strategy is their participation
in the new hit show Fashion Stars that takes up-coming hopeful fashion designer’s looks straight off the
runway and into store the very next day. Other than that the site merely shows you a few items that are
new in stores, promotions for discounts for in store purchases, shopping sprees contests, and newsletters.
IN-STORE ANALYSIS
This in store comparison between Forever 21, H&M, and ZARA was conduced in April 3, 2012 in New
York City. The stores visited were located in midtown 5th avenue area or Time square. Therefore the
stores are probably different from those in any other areas in the country in terms of size, organization,
number of customers, performances and any kind of customer experiences, but at the same time it could
be said that they are ones that represent each brands.
1) H&M (42nd and 5th )
H&M is currently marketing and promoting though TV show called Fashion Star. They teamed up
with NBC to launch a new reality competition series, featuring host and executive producer Elle
Macpherson along with many celebrities such as Jessica Simpson and Nicole Richie. According to
the website(http://www.hm.com/us/fashion-star/), the series will give 14 unknown designers to win
a multi-million dollar prize to launch their collections in three of America’s biggest retailers; H&M,
Macy’s, and Sake Fifth Avenue. At the end of each episode, customers can immediately purchase
the winning designs of that week though online or directly at the shop the following day. Another
unique strategy of H&M to make customer decide to buy their products. Along with the show
window display seen from outside the store, this display placed right in front of the entrance, H&M
is superior to other brands to create seasonal atmosphere.
ZARA (5th avenue bet 52nd and 53rd
The way clothes are displayed in this particular store is absolutely neat, tidy and well-organized
compared to H&M, Forever21, or any other ZARA stores. As it can be seen from the pictures
below, each product is folded very neatly and sorted specifically by their colors and styles, and
therefore very easy to shop. Also, employees are very well educated to satisfy customers’ need and
offer good customer experience. The number of employees in store seemed to be bigger than any
other stores and they were all wearing black suits. As walking around the store, many of them came
to me and talked as “If you need any help just let me know” in a very polite way. The beautifully
organized store created an atmosphere as if it was a high-end brand, making clearly a difference
from H&M and Forever21, yet its price is way cheaper than famous designers’ brands. Shopping in
such store offer higher value for the customer to shop in this particular store. all the items are folded
and sorted by different colors or styles.
3) Forever21 (Times Square)
Compared to other Forever21 stores, this particular one in times square is very different because
while most of their usual stores are relatively messy and untidy this store obviously is well
organized. The most interesting part of this store is that they have different areas where they
separately display their different commodity lines. One thing that should be noted is that there is
always an extremely long line in front of the cashier and fitting room. This store consists of four
big floors and has fitting rooms and cashier on each floor, but all of them are never open at the
same time and the customers always have to wait a long time.
IMC ACTIVITIES
FOREVER21:
Forever 21 uses different IMC activities to reach out to consumer. They have a facebook,
twitter, and blog where customers are kept up to date with on going sale, current events, new
styles, and can go through their lookbooks. They also use social media sites like Pintrest and
Stylistic where users who have signed up can also go through their lookbooks, view differents
ways to style the clothes, get tips, and see how other users have worn the clothes. Iphone/Ipad
applications like Instagram and the Forever 21 app can also be downloaded to view new styles,
daily specials, and even shop. Customers can also sign up for the email subscription. They have
also partnered up with Contiki.com for a contest to win a trip to Europe with a $250 gift card for
you and a friend.
PINTEREST
BLOG
H&M:
H&M has both facebook and Twitter accounts which are constantly updated with new items,
current events, and exclusive offers. They also offer an online coupon that can be printer for instore use, giving customers 20% off one item of their choice. Consumers are immediately
entered to win a $1000 shopping spree when signing up for their newsletter. They also offer an
H&M app download for smartphones and ipads with updates, videos, lookbooks, and other
options like find a store. They also have a youtube chanel with videos, campaigns, and a twitter
and facebook feed.
YOUTUBE CHANNEL
COUPON
ZARA:
Since Zara is so international they mostly keeps consumers up to date via their Facebook,
although they do also have a twtter account which isn’t as updated for US. Their Facebook has
new styles, lookbooks, events, and videos. They also have an iphone/ipad app where you can
view new arrivals, collections, and go through their catalogue. Customers can also sign up for
their Newsletter to get updates and new trends each week.
FACEBOOK
Conclusion
The most effective Integrated Marketing Communication (IMC) campaign is that used by
Forever 21. Forever 21 appeals to fashion savvy girls, ranging from teenagers to women in their
early thirties that try to keep their closets up to date without breaking the bank. As a premise of
their mission statement, Forever 21 seeks to offer the latest and hottest fashion at a reasonable
price. Their competitive edge with H&M and ZARA is their prices. To maintain this edge,
Forever 21 uses a concept called “speed retailing” by offering new, up to date, and reasonably
priced items daily. This concept can be better understood as “here today, gone tomorrow” which
makes it very difficult for other retailers to compete with.
Forever 21’s online shopping website keeps their customers up to date with the latest
trends. Their homepage features photos of several of these hot items and provides a link to “shop
the trend”, taking their customers to right where they need to be to find the latest fashions.
The least effective IMC campaign is ZARA’s. Zara’s target market is young, priceconscious, and highly sensitive to the latest fashion trends. ZARA’s competitive edge may be
quality versus that of Forever 21 and H&M. however, the way they advertise their clothing is not
as appealing. For example, their online shopping website. It is minimalistic and bland compared
to that of Forever 21. Nothing jumps out or grabs a customer’s attention. The merchandise is
categorized into Women’s, Men’s Kids, etc. There isn’t even a “New Arrivals” or “Latest
Trends” category. For a company that targets fashion forward girls, this is not how to do so.
PART II Market Segment
1. Mission Statement
Our purpose is to provide shoppers with the fashion forward and trend initiating designs of Marc
Jacobs at the best quality and price.
2. Target Market Selection
Our target market for Marc Jacobs for Forever 21 is the same as that of Forever 21’s current
target market. Marc Jacobs for Forever 21 will expand that market by also targeting girls and
women that enjoy finer retail merchandise but do not, however, enjoy the price in which they
come. The Marc Jacobs clothing line for Forever 21 will bring not just high end styles to Forever
21’s customers but actual high end items and a high end name. This new line will be at lower
prices than the Marc Jacobs clothing found in retailers such as Nordstrom, Bloomingdales, and in
Marc Jacobs’s stores. In fact, this line will be exclusively for Forever 21, not sold anywhere else.
So this line is ideal for the girls and women who didn’t have the opportunity to purchase Marc
Jacobs previously because it was just too expensive. The Marc Jacobs for Forever 21 line will be
designed exclusively for Forever 21 and with the fashion savvy girls on a budget in mind. This
new line will integrate perfectly with Forever 21’s hot fashion at lower prices strategy.
3. Situation Analysis (SWOT)
Marc Jacobs Forever’s favor internally are its strengths of both retailers individually being
recognizable, popular, and established brands/companies. This means that they have experienced
management teams and board of directors to see out this brand extension and collaboration
transitions smoothly into stores for consumers. There is also strong manufacturing and
distribution system to serve efficiently and quickly in our competitive market. Favorable external
Factors (Opportunities) include the increasing appeal for new line of high-end quality items at a
fast-market low price retailer store especially during an economic recession. At the time there is
also an increasing demand and trend for Designer Names collaborating with lower brand stores.
Many U.S firms are successfully using this form of product and brand-extension. Other
opportunities include the use of online alternatives, online marketing with on-going promotions
through various social networking sites (Facebook, Twitter, Tumblr etc) and strong companyconsumer relationship direct through personal email options.
Marc Jacobs Forever’s internal weakness is that it can potentially lose focus of its low price
guarantee with the addition of a high-end collaboration designer line. This collaboration can
also cause confusion of target age group and among its consumers. Marc Jacob Forever’s
external weakness and threats are that there are many other lower-quality, lower price
competitors. It competes with companies with similar advertisement campaigns of designer
collaborations. There are also an increasing competition in international markets such as H&M
and Zara. If at any time we fall behind on trends, it can cause our consumers to shop alternatives
with our competitors. These competitors are also online apparel retailers. A little bad publicity
or criticism via online is hard to undo. In addition our collaboration is not patentable;
competitors can easily use the same designer and collaboration ideas.
Strengths
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Internal
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Experienced management and eager
workforce
Great Graphics on Print ads & Viral Media
Excellent Growth in sales revenue
Cost effective and known for its consistent
low price products
Brand Recognition among U.S. and
international consumers of both Marc
Jacobs and Forever21
Creativity and constant new additions to
brand new trends and accessories (belts,
hats, shoes, menswear)
Continuing effectiveness in ensuring quality
and timely delivery
Weaknesses
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Opportunities
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External
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Growing demand for quality apparel at
lower cost especially during economic
recession
Increasing demand and trend for Designer
Names collaborating with lower Brand
stores
Many U.S firms successfully use product
and brand-extension
Customer shopping online
outlets/alternatives
Online marketing with on-going promotions
through various social networking sites
(Facebook, Twitter, Tumblr etc.)
Company-consumer relationship direct
through personal email options
Fails to reach true potential audience or
confusion of target age group
Forever 21’s can lose focus of it’s low price
guarantee with the addition of a high end
collaboration
Experienced managers needed to help
transition higher-end goods at lower-end
fast pace setting
Many other lower-quality, lower price
competitors
Threats
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Competes with companies like H&M and
Zara with similar advertisement campaigns
of designer collaborations
Increasing competition in international
markets such as H&M and Zara
Falling behind on trends causing our
consumers to shop alternatives with our
competitors
Many online apparel outlets competing for
consumers business
Bad publicity or criticism via online
Not patentable; competitors can easily use
same designer and collaboration ideas
4) Marketing Opportunity Analysis
Marc Jacobs x Forever 21 is a great way to bring the high fashion look of Marc Jacobs to the fast
fashion aspect of Forever 21. By creating this collaboration we will be able to increase our
growth rate, profitability, and size. Marc Jacobs is one of the most sought out high fashion brand
by consumers. By bringing it to Forever 21 we can grasp these consumers who are seeking the
look of Marc Jacobs with the price of Forever 21. When we look at other high fashion
collaborations that have been done we see how quickly these items have sold out nationwide,
like Versace for H&M or Missoni for Target. Within days after being sold out these items were
being re-sold online for almost double the price. This collaboration will also help bring in a new
type of consumer to Forever 21. Many of the Marc Jacobs customers also seeking to buy this
limited edition collection. These new types of customers who would normally never shop there
will get to see what else Forever 21 has to offer. Forever21 will be right in the midst of a popular
trend of having high fashion collaboration.
The negatives that may arise from this might be the price shock for normal Forever 21
consumers. Because we are collaborating with such a brand we are expecting to have prices
ranges that are a bit higher then what Forever 21 usually has. This is something that consumers
must compromise to have such an iconic brand like Marc Jacobs at Forever 21.Another backlash
might come from the Marc Jacobs consumer because they’re collaborating with such a large and
lower price ranged company. However, this will be limited edition collaboration so we feel these
negative aspects are part of compromise.
5. Marketing Objective, Strategy & Tactic
Marketing Objective:
Introduce and promote the sale of Marc Jacobs at Forever 21
Marketing Strategy:
 Gain awareness via advertisement of the brand before placement in stores.
 Product Strategy: Offer designer clothes in an average priced retail store.
 Price Strategy: price a high-end clothing line that is affordable to the average 15-25 yr.
old woman.
 Promotion Strategy: demonstrate that high-end fashion can be affordable
 Distribution Strategy: placement of clothing in all Forever 21 retailers Nationwide.
Marketing Tactics:
 TV commercials: target age appropriate audience (15-25yr. old women)
 MTV and E! during primetime hours.
 Online Ads: Google, Facebook, Twitter.
 Magazine ads: Magazines targeting 15-25yr. old women
 Teen Vogue, OK, People, 17.
 Forever 21 ads: Posters, window display.
6. Distribution Channel
Forever 21 often uses pricing strategy of “Odd-Even Pricing,” which involves setting
prices a few dollars or cents under an even number. Most of the clothes are sold in prices such as
$14.90 or $29.90 instead of simply $15 or $30. What specializes Forever21 the most is that they
offer the latest looks for teens and 20-somethings at a very affordable price with the average
price for a top at less than $12.
On the other hand, Marc Jacobs is more of a high brand and has different target
consumers from Forever21. A basic short sleeve shirt would cost about $650 and a dress can cost
up to $3600. The collaboration of Forever 21 and Marc Jacobs can make teenagers and young’
dream to wear a cloth designed by a famous designers in an affordable price come true.
Part III IMC Campaign
LOGO:
1. IMC Brief description, including the objectives and strategies for our product extension:
We would like to implement the idea of collaboration, with another designer. We have decided
to work with Marc Jacobs. We have seen that Marc Jacobs, throughout his career has built a
design company with a great image, based on a smart style. Our new product or products will
feature designs and styles by Marc Jacobs but will be produced and sold by Forever 21. We will
raise our prices a bit higher for the special collaboration but ultimately the collection will be less
expensive than Marc Jacobs clothing.
We believe we will have an enormous increase in our market size potential. Our current target
market is young women in their teens to early thirties who like to stay trendy and stylish but also
don’t want to break their bank. We believe that by collaborating with Marc Jacobs, our
customers will flock to our store right away. We will continue with the same types of customers
as well as gain new ones. There are many people that do not shop at Forever 21 but wish they
could afford Marc Jacobs. If a collection by Marc Jacobs is sold in our store we will have an
abundance of new customers
Our main competitors are H&M and Zara. H&M recently did collaboration with Marni. In the
past, H&M has done collaborations with Versace, Roberto Cavalli and Jimmy Choo. Rumor has
it that John Galliano is designing a capsule collection for Zara to be presented in the Spring
Summer 2012. Forever 21 is due for a collaboration seeing as H&M is way ahead and has been
quite successful. Once these collections had hit stores they were bought very quickly.
By creating collaboration we are keeping up with the growth trends. Luxury designers, such as
Versace and Missoni have already teamed up with mass retailers, like Target and H&M, to
produce limited edition lines. Celebrities like Kate Bosworth and Rachel Bilson collaborated
with companies like BeachMint and Steve Madden to create brands like JewelMint and
ShoeMint. These collaborations are bridging the luxury & affordable markets, a product of our
economic struggle, ingenuity, and progression. It’s no secret that the retail world is hurting due
to our slow economy. Therefore, companies don’t want to invest more time & money to build
new infrastructure that produces new goods. The solution to that problem is finding another
business or person to collaborate with who can provide that infrastructure. This is why we
believe Forever 21 should collaborate with Marc Jacobs. The economy is forcing businesses to
become more creative in understanding their consumers’ needs. Everyone would love to wear
designer clothes, but only a small percentage of people can afford to. The solution is to make a
more affordable version that’s not exactly the original.
2. IMC TACTICS BELOW:
PRINT ADS
We will market our product through various print ads. These ads will show our target
market (young girls) looking stylish and trendy in the designs by Marc Jacobs for Forever 21.
We will advertise these ads in various fashion magazines such as Vogue, Allure, Elle, and
Glamour. We will also advertise on Facebook being that young girls in their teen to mid thirties
are the most active users on Facebook. Most people today do things online so we will advertise
on various blogs and websites so that someone may be redirected to our website. We will post
our print ads on billboards in a major cities where Forever 21 stores can be found within a
reasonable distance.
This is one of many print ads that we will be posting everywhere for our collaboration
bran d extension using our contract with Kendall Jenner as our Spokes model who will
contribute to our brand equity as well as increase demand and excitement.
SOCIAL MEDIA
Social media is one of the most important aspects in branding and marketing. We will be
using this platform as away of getting consumers interested, excited, and anticipated for this new
collection.
Instagram: We will be using our Instagram to give previews of our Marc Jacob for
Forever 21 line. In the weeks prior to the arrival we will be giving hints on what to expect for the
line with pictures of storyboards, color palettes, and our inspiration. During the week before its
arrival we will post pictures from our lookbook on to Instagram. We will also have it linked up
to our Facebook and Twitter profiles so it can be connected to our entire social media outlet as
well.
Facebook/Twitter/Blog: We will be updating customers with our lookbook for the
collection on these sites. Also, we will be posting different tips and ways to style the collection
from the bloggers we chose to send our looks too. We will also be updating them with special
event happening for the collection and the different celebrities supporting and wearing the
collection. Consumers will also be informed about our contest that will be happening for the
collection
Pintrest/Stylistic: With these accounts we will be letting consumers post their favorite
looks from the collection. Also, they can post how they wore the look and some of their own
styling tips.
*******This is the actual Tumblr that we created for Marc Jacobs for Forever21. It will
be used before, during, and after the launch to promote awareness, and keep up to date looks of
the collection. This can be used to better our relationship with our consumers by encouraging
them to send us their looks for the site. This is a great media outlet that can give us an advantage
over our competitors and secure the growth of our brand extension.
In addition we also went out of our way to make sure we are not left out when it comes to the
new popular Istagram trend. This becomes a important segment and part of our marketing mix as
a way to reach out to our consumers. In this way we can not only keep them up to date and
constantly active in the progress of the collaboration they can also advertise it for us by reposting
and sharing it with friends. Consumers can post their daily look on their instagram and hash tag
us. Instagram also let them post in on Facebook, twitter, and tumblr.
Take a look at Marc Jacobs for Forever 21 Instagram below:
IN-STORE
The typical fee for stores to make changes to the design of their existing store (such as
review the storefront, the window displays, display placement, lighting, and graphic and logo
review) would cost around $1,000 to $3,500, depending on the store size. For Forever21, with
their floor size exceeding 10,000 square feet in most stores, the price to make their in-store
display for a new line of Marc Jacobs for Forever21 could be assumed to be around $3,500 to
$4,500.
At the launch of this new and temporary brand of Marc Jacobs for Forever21, the store
will promote the new products by displaying them at the most eye-catching places in the store –
the window display (outside), first screen (entrance), and shelf tag (in-aisle). The banners and
logos will be designed by designers from Marc Jacobs. The first thing the customers will
perceive as entering the store would be the new brand products, and this further aims to bring in
new group of target customers to Forever21 since Forever21 and Marc Jacobs originally have a
totally different market.
LOOK BOOK
Our new clothing line is made exclusively for Forever 21 and is to be sold in Forever 21
stores across the US. The size of the stores and the amount of clothing in them can sometimes be
daunting to our customers. So to ensure that our customers are aware of and check out our new
collaboration, we will be creating a preview look book for the upcoming season’s line of Marc
Jacobs for Forever 21. The look book will not contain the entire line, like those of other clothing
companies, but will be just a preview of the line. This will show customers enough of the items
to get them interested and bring them into the store to see the rest of the line.
The look book will be on Forever 21’s website and will be emailed to those on Forever
21’s email list. The look book will be made available about a week before the launch of the new
line in stores and online in order to create hype and anticipation among our customers.
PUBLIC RELATIONS
Editorial Public Relations Strategy: Pitch Marc Jacobs for Forever 21 digital and print look
books and collaboration to newspapers, magazines, websites, blogs and other media outlets
Newspapers: Women’s Wear Daily, New York Post, New York Times: The Sunday
Styles, The Wall Street Journal
News Weeklies: Newsweek, The Daily Front Row, Time Out: any popular urban city
(New York, Boston, Los Angeles etc.)
Magazines geared towards young females: Seventeen, Teen Vogue, Elle Girl, Allure,
Cosmo Girl
Magazines geared towards young women: T Magazine, Glamour, InStyle, Lucky,
Marie Claire, Nylon, Paper, Elle, Vogue
Websites: WWD.com, Vogue.com, Style.com, Fashionweekdaily.com, Fashionista.com,
Fashionologie.com, Stylecaster.com, Racked.com
Blogs: Honestlywtf.com, Whowhatwear.com, ManRepeller.com, RookieMag.com
BUDGET ALLOCATION
Assuming that we have a $50 million launch budget that will be funded for the first 12 months
we have decided to concentrate on the main point in the IMC marketing mix segments and
divvied it up based on importance to our consumer to get the most effective results and
maximum profit for Marc Jacob for Forever21 brand extension campaign.
Print Advertising
Includes: fashion magazines, billboards, ads on Facebook and blogs
In Store
Includes: window displays, remodeling of portion of stores, including shelving, paint, lighting,
banners and signs with brand logo
Launch Party
Includes: venue, models, invitations, celebrity appearances (Including our live performance)
Public Relations
Includes: pitches to magazines, newspapers, online bogs, websites
Social Media
Includes: Instagram, Tumblr, Twitter, Facebook, Pinterest, Stylistic
Monitor and control: Our team will evaluate and control our IMC plan by