A market insight report created for the premium denim jean brand, Tellason based in San Francisco.

1. Sarah White, Isaac Buwenbo, Pablo Prieto, Mariana Quiroga, Brian Schmierer
April 14, 2013
MARKET INSIGHT RESEARCH

2. Topic Areas
• Executive Summary
• Industry Landscape
• Tellason Background
• Objectives & Methods
• Findings & Relevance
• Opportunities
• Recommendations
• Appendix

3. Tellason Jeans is seeking to understand the current market
needs 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 Me
The 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 Summary

4. We uncovered the following four experiences that people
look for in Denim jeans:
• UTILITY
• FREEDOM
• VALIDATION
• TRUTH
Based on our research, we recommend that Tellason focuses on FREEDOM and
TRUTH as the primary experiences for both men and women moving forward.
Executive Summary

5. Denim Jean Market Size
• Global Market $75 billion
• US Market $13 billion
• Premium denim market $2 billion
Industry Trends
• Premium denim category affected by “return to craft” trend
• Focus on sustainability in material and manufacturing
Direct competition
• Increase in small batch, premium brands
• Mass market brands entering the premium denim category
Industry Landscape

6. 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

7. • Identify a clear brand story
that will help them still be here
in 10 years
• Identify new markets Tellason
might enter in the future
Objectives
• Uncover current and potential
experiences within the denim
jean category
• Identify opportunities for
Tellason to distinguish
themselves from competitors

8. 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
Methods

9. We 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
Findings

10. JEANS AS JUST JEANS
“ I don't care about form, but I am more
interested in function which can be served by
any kind of pants. ”

11. JEANS AS UNIFORM
“ It’s about comfort, enables me to do what I
want to do when I want to do it. ”

12. JEANS AS A STYLE STATEMENT
“ I feel good when I look good. I want to know
what's popular and trending so I can know
what others think of my style. ”

13. 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.”

14. We identified four key experiences surrounding denim jeans:
TRUTH
FREEDOM
VALIDATION
UTILITY
Findings

15. TRUTH
feels like a
trusted friend
honesty and integrity in every
aspect of experience, transparency
of methods and inner workings,
brand story/history, they speak to
your story/show the wear

16. FREEDOM
takes you
everywhere
freedom to choose between a well
tailored suit jacket or your old
basketball t-shirt from highschool;
take you from work to play

17. VALIDATION
fit in & still make a
statement
support, status, belonging, mostly
social validation, not about loyalty to
the brand but exterior perception as
motivation to stay "in the know”

18. UTILITY
value in enduring
quality
usefulness, longevity, endurance
recognizes the importance of being
able to stand up to life's challenges
and still look/feel great without
having to do much

19. ADDITIONAL FINDINGS
• Many women do the shopping for their men
• The industry lacks high quality, denim experiences
for women

20. Strength of
EXPERIENCE POTENTIAL
Truth & Freedom experiences are
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.
Relevance
+ -
We discovered these insights related to the
premium denim category.

21. Relevance
EXTENSION OF ME
aligns most closely with TRUTH.
A UNIFORM
aligns most closely with FREEDOM
STYLE STATEMENT
aligns most closely with
VALIDATION
JUST JEANS
aligns most closely with UTILITY.
We discovered these insights related to
the premium denim category.
Customers who see premium
denim Jeans as an Extension
of Me & Jeans as a Uniform
mapped most closely to the
experiences of Truth &
Freedom respectively.
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 related to these
attitude segments as they relate to the
experience of Truth & Freedom.

22. Opportunities
TRUTH - expand and educate
Provide more for knowledge hungry
customers on Tellason’s inner workings,
provide additional access to the brand
through alternative avenues
VALIDATION – celebrate
Create social feedback and community
gratification that celebrate the
relationship between an owner and
their jeans
FREEDOM - bridge
Provide a platform to better
connect online and in-store
shopping experience
UTILITY – demonstrate
Find unique ways to demonstrate
quality and strength of denim

23. 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

24. 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
Recommendations

25. Moving forward on the following strategies with a focus on the
experience of TRUTH & FREEDOM will position Tellason as a leader
in the premium denim jean category.
Recommendations
Improve customer
brand loyalty:
Identify key leverage
points for understanding
and improving customer’s
assessment of the
perceived value of
the brand
Develop channel and
image differentiation
strategies:
Identify online and brick &
mortar retail growth
opportunities
Cultivate long-term
relationships:
Identify partnership
marketing opportunities to
build customer loyalty

26. Thank You

27. APPENDIX

28. ★ 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?
Intercept Questions

29. Ashley 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?
Key Expert Questions

30. 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.
★ "Men's 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/womens
http://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_DENIM
http://www.jackknifeoutfitters.com/about/