Executive SummaryTellason Jeans is seeking to understand the current marketneeds surrounding the high end, denim jean category.Our investigation into the denim jeans category uncovered four user types: • Denim jeans as Just Jeans • Denim jeans as a Uniform • Denim jeans as a Style Statement • Denim jeans as an Extension of MeThe most relevant user types to Tellason are: • Denim jeans as an Extension of Me • Denim jeans as a Uniform.Two additional insights were found around the female shopping experience: • Many women do the shopping for their men - opportunity to direct the Tellason message specifically at them • The industry lacks high quality, denim experiences for women
Executive SummaryWe uncovered the following four experiences that peoplelook for in Denim jeans: • UTILITY • FREEDOM • VALIDATION • TRUTHBased on our research, we recommend that Tellason focuses on FREEDOM andTRUTH as the primary experiences for both men and women moving forward.
Industry LandscapeDenim Jean Market Size • Global Market $75 billion • US Market $13 billion • Premium denim market $2 billionIndustry Trends • Premium denim category affected by “return to craft” trend • Focus on sustainability in material and manufacturingDirect competition • Increase in small batch, premium brands • Mass market brands entering the premium denim category
Small Batch Crafting: Tellason was born in 2008 and based around creating the perfect jean. To create a great fit, meant for 9 out 10 body types, Tellason spent their first 6 months producing one prototype. Made from custom loom woven fabric from Cone Mills White Oak plant in Greensboro, North Carolina and cut and sewn right here in San Francisco, California. Tellason has an affinity for all things well crafted and authentic.Owners Pete Searson and Tony Patella
Objectives• Uncover current and potential • Identify a clear brand story experiences within the denim that will help them still be here jean category in 10 years• Identify opportunities for • Identify new markets Tellason Tellason to distinguish might enter in the future themselves from competitors
Methods 24 Street Intercepts • targeted locations • 5-15 minutes each • Even split (Men/Women) • Age Range - 18+ 2 Expert Interviews • 30-60 minutes • Ashley Holoquiste: Senior buyer at Armani • Tim Smith: Marketing Director at Levis 4 Secret Shoppers (in San Francisco) • A/B Fits • Self Edge • Mill Mercantile • Two Jacks Denim Survey of trend reports and publications on denim industry and Tellason + competitors
FindingsWe identified four attitude segments surrounding denim jeans: denim jeans as JUST JEANS denim jeans as A UNIFORM denim jeans as A STYLE STATEMENT denim jeans as AN EXTENSION OF ME
JEANS AS JUST JEANS “ I dont care about form, but I am moreinterested in function which can be served by any kind of pants. ”
JEANS AS UNIFORM“ It’s about comfort, enables me to do what I want to do when I want to do it. ”
JEANS AS A STYLE STATEMENT“ I feel good when I look good. I want to know whats popular and trending so I can know what others think of my style. ”
JEANS AS EXTENSION OF ME“Honesty and integrity are important to me, I need to know how this fits into my life and want it to align with what I know of myself.”
FindingsWe identified four key experiences surrounding denim jeans:TRUTHFREEDOMVALIDATIONUTILITY
TRUTH feels like a trusted friend honesty and integrity in everyaspect of experience, transparency of methods and inner workings, brand story/history, they speak to your story/show the wear
FREEDOM takes you everywherefreedom to choose between a well tailored suit jacket or your oldbasketball t-shirt from highschool; take you from work to play
VALIDATIONfit in & still make a statement support, status, belonging, mostlysocial validation, not about loyalty to the brand but exterior perception as motivation to stay "in the know”
UTILITYvalue in enduring quality usefulness, longevity, endurancerecognizes the importance of beingable to stand up to lifes challenges and still look/feel great without having to do much
ADDITIONAL FINDINGS • Many women do the shopping for their men • The industry lacks high quality, denim experiences for women
RelevanceWe discovered these insights related to the Truth & Freedom experiences arepremium denim category. what people are most looking for in the premium denim category. This insight closely relates to Tellason’s brand ethos but to realize the full potential of this customer segment the Tellason brand must focus on and leverage opportunities to evoke Truth & Freedom. Strength of EXPERIENCE POTENTIAL + -
RelevanceWe discovered these insights related tothe premium denim category. EXTENSION OF MECustomers who see premium aligns most closely with TRUTH.denim Jeans as an Extensionof Me & Jeans as a Uniform A UNIFORMmapped most closely to the aligns most closely with FREEDOMexperiences of Truth & STYLE STATEMENTFreedom respectively. aligns most closely with VALIDATIONThis insight closely relates to Tellason’sbrand ethos but to realize the full JUST JEANSpotential of this customer segment the aligns most closely with UTILITY.Tellason brand must focus on andleverage opportunities related to theseattitude segments as they relate to theexperience of Truth & Freedom.
OpportunitiesTRUTH - expand and educate FREEDOM - bridgeProvide more for knowledge hungry Provide a platform to bettercustomers on Tellason’s inner workings, connect online and in-storeprovide additional access to the brand shopping experiencethrough alternative avenuesVALIDATION – celebrate UTILITY – demonstrateCreate social feedback and community Find unique ways to demonstrategratification that celebrate the quality and strength of denimrelationship between an owner andtheir jeans
Recommendations We recommend that: • Tellason focus on the segments who see denim jeans as: AN EXTENSION OF ME & A UNIFORM • Tellason do so by evoking the experience of: TRUTH & FREEDOM
Recommendations We also believe that: • With the goal of inspiring loyalty amidst the recent shift in trends, there is potential to educate and market towards those that view denim jeans as: A STYLE STATEMENT • Women shopping for their men may be reached through: VALIDATION
RecommendationsMoving forward on the following strategies with a focus on theexperience of TRUTH & FREEDOM will position Tellason as a leaderin the premium denim jean category.Improve customer Cultivate long-term Develop channel andbrand loyalty: relationships: image differentiation strategies:Identify key leverage Identify partnership Identify online and brick &points for understanding marketing opportunities to mortar retail growthand improving customer’s build customer loyalty opportunitiesassessment of theperceived value ofthe brand
Intercept Questions★ How often do you wear jeans?★ What does a high quality pair of jeans look like to you? (what’s the most you’d be willing to pay for that?)★ How long do you typically spend looking for jeans?★ Can you tell me about your favorite pair of jeans? (question about detail, attachment)★ Do you know where your jeans are made?★ How much of a difference would it make if you knew more about them?★ What’s important to you when you’re purchasing jeans?★ What do you love about finding a perfect pair of jeans? perfect fit?★ What is a delight when you buy jeans? ★ What is a great experience buying jeans?★ What causes you buy new jeans?
Key Expert QuestionsAshley Holoquiste & Tim Smith 1. What are trends you see in denim today? 2. Is the current market of denim a trend or will it last longer than a few years? 3. How does Armani/Tellason/Levis view denim within their product mix 4. What are your thoughts around local production and the importance of “story”? 5. How important is location of manufacturing to your customers? 6. Why do you feel denim been such successful thru the decades. 7. How does Armani / Banana Republic help women find the right fit? 8. What factors does Armani consider when selecting which styles to include in their collections? 9. What makes a pair of jeans bad?
Research Sources★ $200 Jeans? The Economics Of High-End Denim." Real Men Real Style. N.p., 12 "Sept. 2011. Web. 18 Feb. 2013.★ The Rundown on Selvedge Denim â€nd What’s It All About." RawrDenim.com. "N.p., 25 Mar. 2011. Web. 18 Feb. 2013.★ The Story And Philosophy of Tellason." RawrDenim.com. N.p., 10 Feb. 2013. Web. "18 Feb. 2013.Goligoski, Emily,★ The Jean Genies." The Bold Italic. N.p., 9 June 2010. Web. 15 Mar. 2013. "Lipke, David.★ Mens Denim By the Numbers." WWD. N.p., 18 Feb. 2013. Web. 15 Mar. 2013 "Centeno, Antonio.★ $200+ Jeans? The Economics Of High-End Denim." Real Men Real Style. N.p., n.d. "Web. 18 Feb. 2013.Other stores references:http://shop.imogeneandwillie.com/pages/womenshttp://denimbar.com/http://www.raleighworkshop.com/http://www.millmercantile.com/http://www.selfedge.com/http://www.urbanoutfitters.com/urban/catalog/category.jsp?id=W_CUSTOM_DENIMhttp://www.jackknifeoutfitters.com/about/