Virgin clothing - fresh approach to fashion (pitch)

1. VIRGIN CLOTHING
A FRESH APPROACH TO FASHION
12th February 1997
MATCH1 & MATCH1
ADVERTISING

2. WELCOME!

3. “The intrigues, they are incredible”
Christian Lacroix
“The mind twister, it was incredible!”
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 Saatchi’s ?

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
consumers’ 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 ‘commodity 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 DON’T 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 don’t think so, somehow!
It’d be like Coke clothes, or McDonald’s or something...
/
Source: Agency Qualitative Research

11. . ..AS RICHARD BRANSON’S VIRGIN HAS GROWN UP
BACK THEN...
Young
Audacious
British streetwise
Promoter of new talent
Music business brand
Challenger of the establishment
NOW
Big
Ubiquitous
‘User-friendly’
PEPS-to-airlines
megacorporation
c/w Microsoft
/t’s 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
“If you want to break into fashion . . . it’s pretty well
impossible. The established names have sewn up the
market, so new ones haven’t got a prayer. How could
they? The guys. . .are so cosy with the stores there
isn’t anything left for anyone new. The stores don’t
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.”
(THE FASHION CONSPIRACY - Nicholas Coleridge)

14. AND IT’S NOT AS IF THERE IS AN OBVIOUS GAP IN THE MARKET
MEN’S ALTERNATIVE FASHION/LOWER DESIGNER SHIRTS
go-
80"
70--
60--
w
.! 50--
a’
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+

16. BUT...

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 they’re such good
quality. Triple-stitched,
you know. No-one else
does that.....
A RATIONAL
UNDERPINNING
OR
JUSTIFICATION
-I
EVERYONE WANTS CLOTHES THAT WILL ‘DO THINGS’ FOR THEM
AND IF THEY’RE CONVINCED THEY WILL, THEY’LL PAY A PREMIUM...PARTICULARLY IN THIS SECTOR

20. GETTING CLOTHES THAT ‘DO THINGS’ 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
It’s a precarious balance between STANDING OUT and FITTING IN

21. If people want clothes that ‘DO THINGS’ 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 they’ll do it well
= clothes that will ‘do something’ for you

23. THE BRAND POSITIONING
BE FRESH

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 ‘Hot House’ 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 ‘do something’ for them
Clothes ‘do something’ 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 season’s 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 it’s the right kind of innovation
Bold, fresh, British and audaciously Virgin

27. IT’S TIME FOR A FRESH KIND OF FASHION...

28. CREATIVE WORK

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 “fresh blood”
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 ‘fresh blood’ 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 “baggage” of Virgin and re-energises the whole
Virgin offering . . .

30. ‘IT’S TIME FOR FRESH BLOOD’: THE RESEARCH FINDINGS
THE LINE:
PERCEIVED MEANING
“Change the status quo”
“Introduce new ways”
THE IDEA
General: new &
striking, edgy /
challenging
CONCERNSADDRESSED
IN DEVELOPMENT
Early versions of ‘Richard
Branson’ 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
‘Nueva Sangre’, as in, ‘Llega
una nueva sangre’ or ‘Es
tiempo de sangre nueva...’
In French, ‘enfin du sang neuf’
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 ‘tora di cambiare pelle’
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 ‘BANK’ OF BRAND YOUTHFULNESS
AND ORIGINALITY
Brand Bank 198O's/9O's
70’s
Music -b
business
‘Me-too’
soft drinks
90’s new
millennium
Virgin
Clothing

33. IMPLEMENTATION
- Media

34. CHALLENGE FOR MEDIA
RIGHT
PEOPLE
- Consumer
RIGHT
PLACE
- Environment is king
CREDIBILITY

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

38. FRESH MEDIA USAGE

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
‘Fresh’ buildings/exhibitions
“Alternative” catwalk
Bound on supplements
Pop-up’s / 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 ‘Fresh’ magazine supplement
In association with . . . Draper’s Record, Fashion Weekly = endorsement
Reference point to excite and inform
Showcase clothing range
~
VIRGIN ‘ADDING’ 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 ‘right’ press
titles)
PROJECTIONS AND STUNTS
- On to buildings made by / related to fresh blood theme
- Alternative “catwalk”

42. FRESH USE OF CONSUMER PRESS
1. Bound-on to fashion magazines: ‘Fresh’ supplement
I Enhance trade launch activity
- Consumer (and trade again)
2. Pop-up / fold out ad’s
Bring creative idea to life
3. Colour DPS to provide stature and showcase product

43. EXTEND OUR POSITIONING BY ENDORSING FRESH BLOOD
- ‘Support’ fresh talent
TALENT - Street credibility
- Maximise association
1 0
Time Out / The Guide
Style magazines ‘in’
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 ‘support’ fresh talent in comedy, film, arts etc.
l ‘What’s happening’ features - listings and tips on future ‘in’
things
l Street credibility with the right audience (opinion formers I style
leaders)
l Maximise association with sponsorship of relevant listings in,
Time Out, ‘The Guide’ - Guardian, and style magazine features

45. FRESH BROADCAST PRODUCT
Individually select ‘Fresh blood’ broadcast events on C4 and cinema,
and support through sponsorship/advertising
l Featuring new music talent ‘The White Room’
l New British Film ‘Trainspotting’
l Fresh Fashion Programme ‘Eurotrash’
(Brief is new talent, new ideas, new ways of doing things)

46. MEDIA STRATEGY
MESSAGES
(1
Launch
MEDIA USAGE
pzr
Launch
Outdoor
Press
Press
Cinema
N
Outdoor
l Take the temperature, turn the valve

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
IT’S 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?

49. WHY SAATCHI & SAATCHI ADVERTISING?

50. WHY SAATCHI & SAATCHI ADVERTISING?
l Our passion is to produce extraordinary ideas which transform our
Clients’ 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 world’s largest networks
l Media muscle of Zenith (UK and globally)
ATTITUDE OF ‘NOTHING IS IMPOSSIBLE’

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 “do things for them”, 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 brand’s
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 SAATCHI’S!)

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 ‘Hot House’
Brief analysis of Fashion design houses
Sources

54. APPENDICES

55. Appendix 1 - Draft Communication Plan

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 ‘97)
TRADE
LAUNCH
(July ‘97)
CONSUMER
ANTICIPATION
(July - Ott ‘97)
CONSUMER
PRE LAUNCH
(Ott ‘97 - Dee ‘97)
CONSUMER
LAUNCH
(Jan ‘98)
INTERNATIONAL
ANTICIPATION
(Spring ‘98)
SHORT TERM
TACTICAL UK
(Spring ‘98)
INTERNATIONAL
PRE LAUNCH
(Autumn ‘98)
. PR . 7 thought virgin were launching jeans”
. Trade Press l “I can’t believe they’re launching
. Posters designer ciothes. I wonder who’s
designing them? Not Branson, I hope”
. “Hey, the ‘Hot House’ sounds great. I’d
love to be in it”
. PR . Wow. I never expected such a fresh
l Shows look from Virgin”
l Trade Press l “I think this might do well. The clothes
have a fresh attitude”
. “I love the whole concept I must place
an ordef
. Posters . “What’s all this I keep hearing about
. PR Virgin and clothes. I wonder when they
are coming out. ”
. Posters . “I can’t imagine Richard Branson
. Press/PR knowing about clothes”
. Radio . “Ail my friends are talking about it”
. “It sounds interesting”
0 7 still would like to know more”
. Posters . “So that’s what they’re like. They are
l Press much better #an I expected”
. Radio/stunts l 9 love the way Virgin an? always doing
l Cinema things difTerent/y. ”
. “How cool. Virgin are sponsoring young
B&ish designers. It’s about time
someone did. n
. 7’m going to have a look on my next
shopping tip”
. “You should see these great Vitgin
clothes I’ve bought they got a really
fresh attitude”
. PR . Wgin are launching a clothing range I
. Press wonder what it will be like”
. 7 want to know more”
. Cinema . “Always doing things differently”
. Press
. Radio
. Posters . “All my friends are talking about it”
. Press . “It sounds interesting”
. Cinema/N l 4 can’t wait till it launches”
. Radio

57. Appendix 2- Timings

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

60. Appendix 3 - Market Analysis

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 year’s 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 ‘96, real year on year increase in price, likely that coupled
with volume growth could lead to spectacular performances in ‘97
Source : UK Retail Report no 76 Dee ‘96 page 64

66. UK SALES VS NET MARGIN % 1996
SALES A
80 -’
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 ‘94

68. l After a decline in ‘95 the clothing sector started to pick up in ‘96
l First real year on year increase in price in Nov ‘96
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 ‘96

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 ‘Paris’, ‘Milan’, ‘Madrid’, ‘New York’,
‘Tokyo’, ‘Athens’ and ‘Frankfurt’.
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
‘Megastores’ there was only a back of mind awareness of Virgin airlines.
The values associated with Virgin were ‘young’, ‘big’, ‘value for money’, ‘trendy’,
‘powerful’, ‘new’.
The brand was very much seen as a ‘Virgin’ 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 ‘Spice
gins’, ‘Oasis’ and ‘Blur’ 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

72. Appendix 5 - Store Check

73. PRICING STRATEGIES
f Men’s Shirt
Diesel 60
Red or Dead 40
Men’s Trousers /
(Jeans)
60
50
Men’s Jacket
100
n/a
Men’s Jumper /
(Sweatshirt)
100
(50)
50
Men’s T-Shirt
Plain - 25
Clubbing - 40
Plain - 30
Clubbing - 20
Ted Baker 60
CK Jeans 75
Ralph Lauren a5
Armani Jeans 80
90
(60)
65
90
100
120 70
n/a (100)
250 100
170 100
30
Plain - 30
Clubbing - 50
50
50

74. PRICING STRATEGIES
f Women’s Shirt
Diesel 60
Red or Dead 40
CK Jeans 75
DKNY 60
Ralph Lauren 150
Armani Jeans 50
Women’s
Trousers
(Jeans)
60
40
65
50
200
90
Women’s Jacket Women’s Jumper Women’s T-Shirt
(Sweatshirt)
100 70 40
n/a 40 20
600 80 30
175 90 25
700 200 65
n/a 80 45

75. MEN’S SHIRTS - FASHION ALTERNATIVE / LOWER DESIGNER
(Admap)
go-
80 --
70 --
w 6o
3
‘C 50
e
40 -- 0
30 -- B n
20 --
10”
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

77. Appendix 6 - Qualitative Positioning Research

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
‘looks’
BRITISH
Eclectic, varied,
fast-moving
l UK fashion seen as young, eclectic, quirky ‘street’ 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
‘Designer’ 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
People’s champion
Anti-Establishment
Big
Corporate
Ubiquitous
‘User-friendly’
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 ‘bank’ 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 ‘me-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 McDonald’s, or Microsoft

83. Appendix 7 - Competitive Advertising Spends

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. Men’s 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

86. Appendix 8 - TGI Data

87. MALE & FEMALE FASHION SPENDS
Torals
ngc gr”ll’ I ?I- 19
ngc’ gr-clllll 20-24
;1gc jyoup 2 5 -34
;IIy’ f:I’“Ip 35 44
iIj!C’ !!1‘Oll~) 45 ‘54
;l[y ~yollp 55 -64
;gc gl,rc~p 65.99
S1‘X . IllCll
sex . ‘olllc11
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;( lI’I(( 1,: I(;1 “Ml
Wollwll’s Spd
on I+dlioi
Ave. per year Total L’OOOs
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
woITlcIl’s Spc!lTd on
Mcu’s 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
MCIl’S Spd
cm hshion
Ave. per year Total &‘OOOs
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

88. Appendix 9 - Fashion Quotes

89. .’ :r,, .:-t.;
“L+j
The Fashion Conspiracy
Nicholas Coleridge
“Scores 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.”
“England has a kamikaze attitude to designers. For two years you’re praised by the press
and turned into celebrities, then you start getting knocked . . . . they’re always out for the
new name and drop the old one. But in America there’s a structure there - they build those
guys up season after season - Calvin Klein, Ralph Lauren -they’re not innovative designers
any more, but they don’t get slagged.”
Scott Crolla, designer
“There’s the English thoroughbred look, which of course doesn’t travel we.. . . . .And the
other side is imaginative, exuberant, eccentric young London. One so longs for the two
sides to come together . . .”
Suzy Menkes
“The 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?’
Jean Muir
“Frankly, London isn’t 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 they’re doing are like Valentino twenty years ago but they’re too ignorant to
know it. Their heros are Body Map and Galliano but it’s all been said and done by Vivienne
Westwood”
Scott Crolla
“On the other hand, the British never quite understood what we’ve got here. Its like British
pop music all over again. You have to go abroad to realise we’re bloody influential.”
Katharine Hamnett

90. “They are visual snobs, very cliquey and disapproving of outsiders. They talk about other
people being elitist, but in their own way they’re the worst offenders: there’s 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
“He 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.”
“The 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.”
Katharine Hamnett
“Katharine Hamnett recent collections have been rather sexy, with emphasis on the
cleavage and nipples.”
“It’s the fabric people who bankrolled Armani and Versace and Ferre,’ say designers in
London, with a tinge of envy in their voices. ‘The factories pay for half - more than half - of
these advertisements’ . . .
“It is Milan’s 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 strategy”
“The Italian conspiracy is more than a collusion of style. The ingenuity with which designer
labels were funded and marketed revolutionised the fashion industry’s 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.”
“It 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 magazines’ editors.”
“In the court of Valentino, the preferred woman is rich and international and far too busy
travelling to trouble with a career.”

91. “Sexuality 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.”
Big, Established Designers Vs Smaller, Newer Designers
Yves Saint Laurent of Galliano and McQueen:
“What I saw on the runway terrified me. It was a ridiculous spectacle, which would have
been more in keeping at a rock concert”
“People don’t go to Galliano to buy his clothes anymore, they only want the perfume and
accessories”
“No-one since Coca Chanel and myself has shown the slightest talent”
Karl Lagerfield response to above:
“You need to be up to date in this job. Yves St Laurent should give up.”
The Guardian 0502.97
“The British have a name for the new hip spirit that is giving their country a reprise of the
swinging Sixties. They call it “cool Britannia”.
Suzie Menkes, International Herald Tribune
Armani “fashion is dead”
Vivienne Westwood “fashion is a barometer of culture. If there is no fashion, there is not
culture”
Betty Jackson “The best thing about fashion is its ability to reinvent itself’
Jon Bon Jovi “Fashion and rock’n’roll are joined at the hip. It all started when Elvis
dressed the youth of America and Beatles suits swept the world”

92. Appendix 10 - Influence of British Music

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
“Fashion and rock ‘n’ roll are joined at the hip. It all started when Elvis
dressed the youth of America and Beatles suits swept the world”
Jon Bon Jovi : Sunday Times 09.02.92

95. Appendix 11 - Internet

96. AGENDA
l Opportunity for Virgin on the Net
l General Information about the Net

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 ‘Fresh
Blood’ 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

98. NUMBER OF COMMERCIAL WEB SITES -WORLDWIDE
NOW 150,000
2000 500,000

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 ‘top layer’ 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

102. NUMBER OF USERS
(INTERNET)
WORLDWIDE USA EUROPE
NOW 30 Mn 20 Mn 5Mn
2000 . 150 Mn 80 Mn 40 Mn

103. NUMBER OF USERS
ww
WORLDWIDE
NOW 15-20 Mn
USA
IO-13 Mn
70 Mn
EUROPE
2-5 Mn
35 Mn

104. AVERAGE AGE OF WEB USERS
NOW
2000
WORLDWIDE
34.9
39.0
USA EUROPE
35.7 29.8
40.2 32.5

105. GENDER SPLIT
(MALE/FEMALE)
NOW
2000
WORLDWIDE USA EUROPE
68.6131.4 % 67.6132.4 % 80.1119.9 %
60.3139.7 % 55.4144.6 % 60/40 %

106. HOME VERSUS OFFICE
HOME
WORK
WORLDWIDE USA
63.6% 65.6%
27.8% 26.8%
EUROPE
36.7%
45.0%

107. USERS BY EARNINGS
WORLDWIDE USA EUROPE
$56,000 $59,000 $50,000

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

114. Appendix 12 - ‘Hot House’

115. WHAT WOULD THE ‘HOT HOUSE’ 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 ‘fresh’ look at the clothes to give consumers clothes they
want

116. OBJECTIVES OF THE ‘HOT HOUSE’
l To provide a hip / fresh view for the brand
l To promote the brand among their peers
l To design new, fresh clothes

117. THE STRUCTURE OF THE ‘HOT HOUSE’

118. WHAT IS THE ‘HOT HOUSE’?
l Consists of ‘fresh’ 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 ‘new’ talent from college
fashion shows
l Source new talent from other
design fields
l Confirm committee
l Launch show piece items
Late Feb ‘97
Early March ‘97
Mid March ‘97
July ‘97

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 ‘Paris’, ‘Milan’, ‘Madrid’, ‘New York’,
‘Tokyo’, ‘Athens’ and ‘Frankfurt’.
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
‘Megastores’ there was only a back of mind awareness of Virgin airlines.
The values associated with Virgin were ‘young’, ‘big’, ‘value for money’, ‘trendy’,
‘powerful’, ‘new’.
The brand was very much seen as a ‘Virgin’ 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 ‘Spice
girls’, ‘Oasis’ and ‘Blur’ 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.

122. Appendix 14 - Sources

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 CONT’D
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 CONT’D
CONTACTS
Sam de Teran
Editor of Vogue
Liz Faber, Predictions in Fashion Trends
An many unnamed fashion writers, DJ’s and funky people!