Liz Claiborne Case Study
Kathleen Harding-Heber
Lisa Carbonneau
Melanie Israel
Jessica Johnston
Liz Claiborne Facts
 Founded in 1976
 Established by Liz Claiborne, Art Ortenberg, Leonard Boxer
and Jerome Chazen
 Designing and marketing women’s sportswear
 Liz Claiborne Collection, Lizsport, & Lizwear
 Liz Claiborne Inc. went public in 1981 with net sales
of $116.8 million.
 By 1982 added petite sportswear and dress line,
women’s shoes and fashion accessories
 In 1985 with retail sales surpassing 1.2 billion, was
the first company started by a woman to make the
fortune 500
 By 1987 added men’s sportswear, men’s furnishings,
petite dresses, & fragrances
 In 1989 both Liz Claiborne and Art Ortenberg retires
Liz Claiborne Facts
 In 1992 Liz Claiborne Inc. acquires Crazy Horse,
Russ, & the Villager
 1993 opens retail stores
 16 Liz Claiborne retail store
 39 First Issue stores
 55 outlet stores
 In 2000, net sales of $3.1 billion
 Claims 2% of the women’s apparel market
 Sold in major department and specialty stores
 Consists of women’s & men’s fashion apparel and
accessories
 Liz Claiborne Inc. employs over 7,000 people
worldwide
 Executive offices, design, sales, marketing and
merchandising in New York City
 Production, administration, distribution and finance in
New Jersey
Financial Highlights
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1998 1999 2000 2001 2002
1998 1999 2000 2001 2002
Op. Income
Assets
(In millions)
Net
Sales
Divisions
Liz Claiborne Inc
Wholesale Apparel
Wholesale Non-Apparel
Domestic
International
Retail
Liz Claiborne Brands
Axcess
Bora Bora
Candie's
Claiborne
Crazy Horse
Curve
Dana Buchman
Ellen Tracy
Elisabeth
Emma James
First Issue
J.H. Collectibles
Juicy Couture
Laundry by
Shelli Segal
Liz Claiborne
Lucky Brand
Mambo
Marvella
Mexx
Monet
Monet 2
Realities
Sigrid Olsen
Trifari
Villager
•In addition, Liz Claiborne Inc. holds the exclusive, long-term license to produce
and sell men's and women's collections of DKNY® Jeans and DKNY® Active
•The Company also has the exclusive license to produce women's wear under the
Kenneth Cole New York and Reaction Kenneth Cole brand names.
Liz Claiborne Brand vs Other Product
Percent of Sales
Other
Brands
70%
Liz
Claiborne
1997
43%
2002
Liz Claiborne Current Positioning
 Stock Quote $34.67 (as of 6/12/03)
 105,592,062 shares outstanding (as of
12/31/02)
 Company was founded in 1976 & went
public on June 1, 1981 at an adjusted
price of $1.19 per share. (adjusted for
stock splits).
 CEO Paul Charron anticipated growth
for 2003 = 9-11% increase in sales
 LIZ is currently tracking to exceed this
prediction, with a 1st quarter reported
20.5% sales increase)
Liz Claiborne Product Lines
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Axcess – modern women’s & men’s clothing
Bora Bora – modern cosmetics and fragrances
Candie’s – modern cosmetics & fragrances
Claiborne- classic men’s & children’s clothing, accessories, and cosmetics & fragrances
Crazy Horse- classic women’s & men’s clothing & accessories
City DKNY- modern women’s clothing
Curve- modern cosmetics & fragrances
Dana Buchman- classic women’s clothing
DKNY Active/DKNY Jeans – denim women’s & men’s clothing
Elisabeth by Liz Claiborne – classic larger sized women’s clothing & accessories
Ellen Tracey – classic women’s apparel, accessories, cosmetics & fragrances
Emma James – classic women’s apparel
First Issue – classic women’s apparel & accessories
J.H. Collectibles – relaxed women’s apparel
Liz Claiborne Product Lines
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Juicy Couture – sexy, luxurious, fun – baby apparel, down dog couture yoga, men’s apparel,
sleepwear, swim, maternity, outer-ware, denim, & accessories.
Kenneth Cole, New York – modern women’s clothing & accessories
Laundry – modern women’s clothing
Liz Claiborne- classic women’s & children’s clothing, accessories, cosmetics & fragrances.
Lucky Brand – denim women’s, men’s, and children’s clothing, accessories, cosmetics & fragrances.
Mambo- modern cosmetics & fragrances
Marvella – classic accessories
MEXX – modern women’s, men’s, and children’s clothing, accessories, cosmetics & fragrances.
Monet – classic accessories
Monet 2 – classic accessories
Realities – classic cosmetics & fragrances
Sigrid Olsen – relaxed women’s clothing & accessories
Trifari – classic accessories
Villager – classic women’s clothing & accessories
Some of Liz Claiborne’s Competitors
 Bernard Chaus, Inc.
 (including Josephine Chaus) – featuring women’s career clothing. Company was started in 1976, and
reported $149.5 million in sales in 2001.
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Brands all include the Josehine Chaus name:
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Josephine Chaus Collection – career sportswear
Josephine Chaus Sport – casual sportswear
Josephine Chaus Studio- business casual clothing
Josephine Chaus Essentials – better career separates
Constantly growing & expanding into new markets & expanding product lines
 recent introduction of Chaus & Co. in 350 JCPenney stores
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Constant production & technology improvements – resulting in a recent 10% decrease in annual
operating expenses.
 *Stock performance - $.98 per share (as of 7/3/03)
$1.01 52-week high - $.46 52-week low
27,322,000 outstanding shares as of 5/9/03
Liz Claiborne’s Competitors
 Ann Taylor
 featuring “a look for every occasion”,
specializing in women’s career clothing with a
“design conscious” appeal with “relaxed
lifestyle at work and at home”
 Brands include two divisions & over 580
stores:
Ann Taylor
Ann Taylor Loft
 Stock performance - $29.62 per share (as
of 7/7/03)
$17.05 52-week low
$30.07 52-week high
556,800 outstanding shares as of 7/7/03
Liz Claiborne’s Competitors
 VF Corporation
 boasts their 102 year history and reputation as the “world’s largest apparel
industry – carrying: denim, intimate apparel, knitwear, & specialty
apparel
 One out of every 4 pairs of jeans sold in the U.S. is a VF brand.”
 *VF boasts its’ positioning as having more than 25% of the U.S. jeans
market.
 Brands include:
Lee
Wrangler
Rustler
Riders
Britannia
Chic
Gitano
Maverick
Old Axe
Gemma
Intima
Cherry
Natori
Variance
Vanity Fair
Vassarette
Bestform
Lily of France
Lou
Bolero
Jansport
Eastpack
North Face
Healthtex
Red Kap
Liz Claiborne’s Competitors
 Jones New York
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Jones Apparel Group, Inc. claims its position as a “leader in the apparel and
footwear industries”
 Product lines including: sportswear, denim, suits, dresses, menswear, shoes,
accessories, and costume jewelry
 Stock Performance: $30.50 stock price as of 7/6/03
38.25 52-week high - $25.61 52-week low
864,800 outstanding shares as of 7/6/03
 Brands Include:
Licensed Brands Include:
Jones New York
Evan Picone
Rena Rowan
Todd Oldham
McNaughton
Gloria Vanderbilt
l.e.i
Enzo Angiolini
Napier
Judith Jack
Jamie Scot
Erika
Energie
Currants
Nine West
Easy Spirit
Lauren B
Ralph Lauren
Ralph by Ralph Lauren
Polo Jeans Company
Tommy Hilfiger costume
jewelry
Givenchy costume jewelry
Esprit footwear &
Liz Claiborne’s Charitable Contributions
“Women’s Work”
 Liz Claiborne is committed to the
prevention domestic violence.
 Liz Claiborne appears to be the only
company in their category that places
emphasis on such a widely supported
cause.
 Educational programs on-line to end
relationship violence & teen dating
violence.
Liz Claiborne’s Charitable Contributions
The Liz Claiborne Foundation
 “Reaching out to the communities in which we work and live.”
 Provides financial & volunteer assistance to various non-profit organizations (especially
those that address “issues of particular concern to women and their families”.)
 Job training & micro-enterprise development for disadvantaged women
 Serving the “special needs of women who are HIV-positive or who have AIDS”.
 Educational & Developmental programs for “underserved children”.
 Supporting artistic & cultural institutions that assist the community.
 A wide-ranging matching gifts program
Marketing Philosophy
“Simple, straight forward
fashion designed for women
who have more important
things to think about than
what to wear”
Lane, Bilafer, Fandel, Gottfried, Hoffman p.490
Marketing Philosophy
Social Environment
 More than 50% of all women in the United
States currently work outside the home
 Stay-at-home moms have become the
exception while the dual income family has
become the norm.
 Women no longer have the kind of leisure
time to shop like they once had and they
prefer to accomplish as much as possible in
a single shopping excursion
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Liz Claiborne, Inc. has designed marketed
itself to these women with the concept of
convenience in mind.
Marketing Philosophy
Social Environment
 Liz Claiborne Inc. designed mix-and-match
outfits to suit individual needs
 The shopping experience for the busy lifestyles of
working women
 Elisabeth” clothing line designed for the forgotten
woman: Over 30% of adult women are
overweight
 Currently, the corporation has product lines
designed for plus sizes, petites, suits,
sportswear, dresses, accessories, fragrance, and
now even a men’s line.
 Liz Claiborne Inc.’s portfolio of products is
designed to meet the needs of various shapes,
sizes, and lifestyles and it is that social
versatility that significantly helps to keep the
corporation so successful year after year.
Women’s Work
Women’s Work: helping to fund and assist social welfare programs
 A way to give something of value back to the people who have made the company
 The program began as a series of community-based, public art projects designed to
heighten the awareness of, and encourage positive social change on, issues of particular
concern to women and their families
 Tackles issues such as domestic violence, homelessness, AIDS, and work-family conflicts
 In an effort to heighten the awareness of domestic violence, Liz Claiborne Inc. funds public campaigns
 Billboards, posters, brochures, bus signs, public broadcasts, and service announcements
 24-hour domestic violence hot line
Strengths
 Diversified Brands
 30 Brand Portfolio
 Bridging Modern, Better, and
Popular Priced
 Original Liz brand strength
 43% of total company sales
 Positive Corporate Environment
 Public Relations Program
Weaknesses
 Wrong Product & Too Much of it
 Clothing industry is seasonal
 Designs and production need large lead time
 Retirement of Liz Claiborne
 Lack of brand recognition with social
consciousness
 International
-Political environment
-Trade restrictions
-Distribution
-Marketability of brand Name
product
Opportunities
& Strategic Alternatives
 Utilize Liz Claiborne in Advertising
 Like Liz Taylor markets her perfume
 Ma Boyle advertises Columbia Sportswear
 Further publicize their Public Relations Program
 Domestic violence educational hang tags
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Extending Brands through licensing
Expand popular priced branded lines
Expand Specialty Stores
International Development
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Increase Distribution Centers Overseas
Continue to improve the supply chain
Market Expansion Opportunities
License with Developed International Lines
-MEXX
-Juicy Couture
Any Questions?