Case study: Levis Strauss Signature
- Analysis of external market for jeans
- Internal analysis of Levis
- The Marketing mix
- Product policy
- Distribution policy
- Communication policy
The denim apparel market since the year 1873 became a segment offering ideal conditions for the growth of Levis. The company derives maximum profit from its operations in the denim apparel segment. Based in San Francisco, the company employs 12,300 people and generates 64% of its net sales in the United States and 26% of the sales in Europe.
In 2003, the company launched a new brand: Levis Strauss Signature, in the U.S. market through a partnership with Wal-Mart. In a world where networks of hypermarkets are growing, Levis had to also make its presence felt in the market of cheap quality Jean, along with its new slogan: "Buy where people buy."
[...] Internal analysis of Levis Forces Weaknesses Product -Leading company in the Net profit is negative -Reorganization of PDM (Product data business in Europe: the management)-volume declined improvement Europe Sells clothing for all . customer segments. Policy-assessed standardized product: economy of scale. Price Problem-price positioning across countries due to the existence of gray markets and Plans to reduce costs to parallel markets. increase margins Communication -Communication campaigns Distribution targeted to the youth to drive sales -Channel distribution: -In the U.S. the retail Fostering strongholds as they distribution channel is are losing ground by volume). [...]
[...] By penetrating the networks of these three European countries, the company may consider to afford a launching pad to all other European countries that will experience the same enthusiasm soon for mass distribution. Objectives Before implementing our marketing strategy in order to increase the sales of Levis Strauss Signature, we have defined very specific marketing objectives, which are: Reposition the brand in the traditional market premium. Developing the retail channel. Responding to the need for brand experience of customers of large area. Adapt the distribution by country Find a pricing policy to avoid the black market. [...]