Professional Documents
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Brand Management
Submitted by RENJITH RAVI & SUDHIN MUKUNDAN Dr. Abdul Waheed
Levis marketing
Levis has been very successful in promoting its brand worldwide and making continuous innovation in its products and marketing strategy. It is evident from their add marketing how they have evolved to satisfy the needs of current trends. Back in 1900 jeans was considered to be a workers pant. But today Jeans speaks about one character. Levi has been successful in evolving along with the market trends. Levis mainly market through TV ads, Promotion of Music or film events, Print ad in fashion, music and life style magazines. Levi is today a leading name in the fashion industry. They had successfully targeted the right customers and brought in adds that could please the target market. They came out with Slogans that could match the current trends. Some of the famous slogans adopted by them are
O O O O O
A style for every story. Have you ever had a bad time in Levi's? Quality never goes out of style. Levis. Original jeans. Original people. Our models can beat up their models.
These slogans have been well received by the consumers and they placed Levis as one of the premium brand in their mind.
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Case Scenario
In1998, market share of GWG was just 1 %. Levi decided to license GWG to a small jeans manufacturer JACK SPART MANUFACTURING INC. based in Montreal, Quebec. Levi expected Jack Spart to reinforce the brand image in the mind of the customers but unfortunately by 2001, Jack Spart could not sell more than 200,000 units. Jack Spart has not invested any money into the development of GWG brand. Jack Spart felt the GWG Jeans was old fashioned and it could not be sold in the market. Since the market was concentrated with many brands they did not spend any money for its development. In 2001, Levis marketing head Ms. Julie Klee had to take a decision whether to continue Licensing with Jack Spart or take over GWG brand and reinforce the brand or else to drop the brand and concentrate on Levis existing brand.
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Fashion Reasons Work, Relaxation To be themselves, attract others & to feel good.
Consumer Segments
The jeans market targets both Men and Women. The market is divided as follows: 1) Age: 15 24: Men and Women in this age range are the main consumers for jeans
manufacturers. They consume almost twice as much when compared to Age 25 to 50. They wear jeans to feel relaxed, to be cool, to attract and feel good. Most of the jeans manufacturers target this age group since the consumption is v high and they easily ery accept the change in trends. Levi mainly targets this age group. 2) Age: 25 50: This is mainly the working group and they wear jeans for comfort, ease and
compatibility. They are less oriented towards fashion and therefore styles have more life compared to other age group.
Jeans Distribution
With the growth of Large and Small Merchants, the market of jeans has become very strong. Customers can get wide verities and different price option. Large Merchants like Wall mart is the strongest player. Zellers also has many options and majority of the customers make their purchase from these merchants. The other strong player for premium products are Specialty stores like GAP, Marks Warehouse which customers consider as a place only for Jeans. The department stores are
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not an advisable place for Jeans selling these days. They are losing their share and a detailed study of distribution along with their sales is shown below for better understanding.
Examples of Stores The Bay, Sears Original Machine Levi s Stores, Jean
Specialty Stores
The
Gap,
Mark s
Work
5595
Wearhouse Large Merchandise Small Merchants Others Winners, Costco 3105 Mass Wal-Mart, Zellers Saan, Giant Tiger 6105
Orange Tab
O O
Orange Tab is a less premium product and it is sold by retailers at a discounted price of USD29.99 to a price of USD42.99. Red tab is quite expensive and is sold at a higher price compared to Orange tab. Red tab has more fits and they also introduce new finish every year.
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Rustler
O O
Wrangler
O O
The prices are less compared to Levis but with the introduction of this brand Levi has lost a lot of its market share and therefore they consider Wrangler as their main competitor.
Private Labels
With the growth of large and small merchants, many private brands were introduced in the market. Sears, Wall Mart, Costco etc came up with their own cost effective brands. They targeted all age group and they brought in Jeans that could satisfy the current market style. They could easily copy the style from Levi or Wrangler since they distributed majority of their products. These were priced cheaper and consumed majority of the market share.
O
Sears
O O O
O O O
Costco Rockland ($16.99) Wal-Mart Originals ($19.99) Zellers Cherokee & Truly($19.99)
Private brands were strong in Women's market, since they preferred more styles and cheaper price.
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Specialty Retailers
The other main competitors to Levis were specialty stores. They took a large number of customers. They offered quality and price. Also customers considered shopping with them more exclusive since they were specialty stores. GAP was leading among them and others were Mark Wearhouse which had their own brand called Denver Hayes and Thrifty with Bluenotes. The prices were very similar to that of Levi and they sold a number of jeans.
O O O
Marks Wearhouse Denver Hayes ( 34.99) Age 25 to 50 Thrifty - Bluenotes ($39.99) Age 15 to 24 GAP GAP ($49.99) Age 18 to 35
Premium Brands
The other brands in the market were high premium products which targets only a few customers. These were meant to be expensive and most of them priced from USD 70 to USD 100. Some of the premium brands are:
O O O O O O
Silver ( $69.99) Guess ( $79.99) Tommy Hilfiger ($89.99) Polo Ralph Lauren ( $89.99) Calvin Klein ( $ 79.99) Diesel ( $ 100.00)
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Recommendation
It is well evident that GWG brand has no potential strength to compete in the market and it has been positioned in the mind of the customers as old fashioned clothing. We recommend Ms. Julie Klee should drop this brand and use the available resources to build their existing Levis brand. They can come up with a signature brand to compete with very high end products like Diesel and Calvin Klein. Levis has been positioned as premium brand and they should keep their identity in the market. The best option for any company is to realize their strong points and bring in products that can easily compliment their existing brand image.
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