TheThe HistoryHistory of of LeviLevi‘‘ss JeansJeans
LeviLevi‘‘ss Jeans was Jeans was launchedlaunched in 1873 in 1873 byby Levi Strauss, a Levi Strauss, a bavarianbavarianimmigrantimmigrant in San Franciscoin San FranciscoOriginallyOriginally theythey cateredcatered to to thethe needsneeds of of thethe workingworking classclass factoryfactoryworkersworkers, , farmersfarmers, and , and minersminersSales Sales skyrocketedskyrocketed in in thethe 50s and 60s 50s and 60s throughthrough endorsementsendorsements bybyJames Dean, Marlon Brando, and James Dean, Marlon Brando, and otherother rebelliousrebellious figuresfigures of of thethetimetime
TheThe HistoryHistory of of LeviLevi‘‘ss JeansJeans
In In thethe 1980s Levis 1980s Levis beganbegan aggressivelyaggressively usingusingtelevisontelevison advertisingadvertising to to marketmarket theirtheir 501 501 bluesbluescampaigncampaign
Sales and Sales and profitsprofits beganbegan a 12 a 12 yearyear increaseincrease
TheThe 501 501 jeansjeans representedrepresented socialsocial acceptanceacceptance withwith a a mild mild sensesense of of rebelliousnessrebelliousness forfor amongsamongs itsits wearerswearers, , and was and was thethe mainmain reasonreason forfor thethe companycompany‘‘ss successsuccessLevis 80s Levis 80s commercialcommercial
A A surveysurvey in in thethe 90s 90s revealedrevealed thatthat peoplepeople whowhothoughtthought Levis was Levis was „„coolcool““ plummetedplummeted betweenbetween1994 and 19981994 and 1998
WhatWhat happenedhappened??
Rap Music Rap Music HappenedHappened
BaggyBaggy jeansjeans as as wornworn byby raprap artistsartistsat at thethe time time becamebecame thethe New TrendNew TrendPeople no People no longerlonger thoughtthought tightertighterfittingfitting jeansjeans (such as (such as LeviLevi‘‘ss) ) lookedlookedcoolcoolAs a As a resultresult of of thisthis style style changechangeLeviLevi‘‘ss jeansjeans salessales crashedcrashed in in thethelatelate 90s90sIn 1999 Levis In 1999 Levis hadhad to to closeclose 30 of 30 of theirtheir 51 51 factoriesfactories
QuestionQuestion 11
UsingUsing thethe anatomyanatomy of of thethe brand brand positioningpositioning frameworkframework, , analyseanalyse thetheLeviLevi‘‘ss brand in 1996 and 1999. brand in 1996 and 1999. WhyWhy
has has thethe positioningpositioning of of thethe brand brand changedchanged??
In 1996 In 1996 LeviLevi‘‘ss reportedreported recordrecord oneone yearyear salessales of $7.1 of $7.1 billionbillion and a and a profitprofit of of moremore thanthan 1 Million1 Million
In 1999 Sales In 1999 Sales hadhad fallen to 5.1 fallen to 5.1 billionandbillionand barelybarely anyany profitsprofits wereweremademade despitedespite closingclosing 30 30 factoriesfactories..
LeviLevi‘‘ss Brand DomainBrand Domain
199619961515--25 age 25 age groupgroup..
culturalcultural trendsetterstrendsetters obsessedobsessed withwith beingbeing„„coolcool““
„„WhatWhat kidskids wantwant isis to to bebe acceptibleacceptible to to theirtheirpeerspeers. . TheyThey‘‘rere lookinglooking to to makemake an an impactimpactwithwith potential potential partnerspartners as well and as well and thereforetherefore theythey wantwant to to looklook rightright““ --RobertRobertHolloway, Holloway, ViceVice presidentpresident of of marketingmarketing
ThreatsThreats such as JNCO and such as JNCO and KikwearKikwear
19991999UnchangedUnchanged brand brand domaindomain
Retrieval of Retrieval of corecore marketmarket
CoreCore marketmarket sawsaw LeviLevi‘‘ss as as cateringcateringtowardstowards thethe olderolder age age groupsgroups..
„„CulturalCultural connoisseursconnoisseurs““
ThreatsThreats such as Hugo Boss and Tommy such as Hugo Boss and Tommy HilfigerHilfiger
ThreatsThreats to to LeviLevi‘‘ss Brand DomainBrand Domain
LeviLevi‘‘ss Brand Brand HeritageHeritage & & ValuesValues
19961996ClassicalClassical brand brand historyhistoryComplacencyComplacencyRebelliousRebellious attitudeattitude„„Genuine, original, Genuine, original, authenticauthentic, real, real“
19991999CompetedCompeted withwith Wrangler Wrangler yetyet carriedcarried a a premiumpremiumpricepriceTheirTheir rebelliousnessrebelliousness hadhadbeenbeen stolenstolen byby brandsbrandssuch as Dieselsuch as Diesel
“
LeviLevi‘‘ss brand brand assetsassets & & personalitypersonality
199619965 5 pocketpocket jeansjeans (501)(501)EstablishedEstablished namenameLabel Label ValueValueSociallySocially acceptableacceptableHigh High qualityquality
ClassicClassic charactercharacterRetroRetro coolcoolAssociatedAssociated withwith musclemuscle carscarsand and motorcycles
19991999UnchangedUnchanged stylestylelessless significantsignificant Name Name High High qualityquality competitorcompetitor
Out of Out of touchtouch withwith thethe youthyouth„„Levis Levis stylesstyles areare tootoo tighttight and and forfor thethe olderolder generationgeneration““
motorcycles
LeviLevi‘‘ss brand brand reflectionreflection
19961996PerceptionPerception of of takingtaking partpart in in thethe historyhistory of of levislevis..
Old Old schoolschool stylestyle
SophisticatedSophisticated taste
19991999„„IfIf I I boughtbought Levis, Levis, itit‘‘ss likelike I I boughtbought Wranglers and Wranglers and peoplepeoplethinkthink II‘‘mm cheapcheap, , butbut itit‘‘ss still still expensiveexpensive““
Old Old fashionedfashioned perceptionperception
Lack of Lack of socialsocial acceptance
taste
acceptance
QuestionQuestion 22
Do Do youyou believebelieve thatthat thethe LeviLevi‘‘ss brand brand positioningpositioning isis retrievableretrievable? ? ShouldShouldLeviLevi‘‘ss relaunchrelaunch usingusing a different a different
namename??
RetrievingRetrieving thethe brand brand positionposition
Levis Levis mustmust catercater to to theirtheir targettarget groupgroup and alter and alter
theirtheir productproduct lineline
Levis Levis mustmust allowallow different different stylesstyles intointo theirtheir lineslines
Levis Levis mustmust challengechallenge existingexisting conventionsconventions ratherrather
thanthan relyrely on on theirtheir pastpast achievementsachievements ifif theythey everever
wishwish to to appearappear cool cool againagain
RetrievingRetrieving thethe brand brand positionposition
2 2 targettarget segmentssegments (15(15--25) (25+)25) (25+)YouthYouth orientedoriented productsproducts ((ZipZip off)off)Business Business casualcasual linelineViralViral communicationscommunicationsWornWorn jeansjeans
Corporate Corporate IdentityIdentity managementmanagement
Corporate Identity
Actual Identity ConceivedIdentity
Desired Identity
CommunicatedIdentity
Ideal Identity
ShouldShould Levis Levis rebrandrebrand??
ProProCouldCould start start fromfrom newnew
WouldWould getget ridrid of of theirtheiruncool imageuncool image
CouldCould attractattract previouslypreviouslyunattainableunattainable customers
ContraContraWouldWould lose brand lose brand heritageheritage and and valuevalueCostCost ((advertisingadvertising and and namename researchresearch))RiskRiskProblems Problems areare notnot just just withwith name
customersname
Question 3Question 3
Assess the Steps taken by Levi Assess the Steps taken by Levi Strauss to restore LeviStrauss to restore Levi‘‘s as a s as a
Successful Brand?Successful Brand?
RestoringRestoring of Leviof Levi‘‘s Brands Brand
Steps Taken :Steps Taken :
Launching of New Products Launching of New Products
Innovation on the Retail FrontInnovation on the Retail Front
New Advertisement StrategyNew Advertisement Strategy
““MassifiedMassified”” PromotionPromotion
““SelfSelf--discoverydiscovery”” Campaign Campaign
RestoringRestoring of Leviof Levi‘‘s Brands Brand
NonNon--Denim JeansDenim Jeans-- StaSta--PrestPrest
=> => New New Products 1999Products 1999
Major TV advertising Major TV advertising Campaign feat. Campaign feat. Flat EricFlat Eric
=> => New Products 2000New Products 2000
Engineered Jeans Engineered Jeans –– ‚‚Twisted OriginalTwisted Original‘‘
Reinvention of the old 501 BrandReinvention of the old 501 Brand
RestoringRestoring of Leviof Levi‘‘s Brands Brand=> => New New Products 2003Products 2003
BusinessBusiness--Casual Line Casual Line -- Dockers RecodeDockers Recode
SS--Fit Trousers, AntiFit Trousers, Anti--RadiationRadiation LeviLevi‘‘ss WornWorn JeansJeans
„„Rub yourselfRub yourself““
RestoringRestoring of Leviof Levi‘‘s Brands Brand=> => Innovation on Retail FrontInnovation on Retail Front
First Unbranded Store First Unbranded Store Cinch!Cinch! –– LondonLondon
Stores with same Format, Different Name across EUStores with same Format, Different Name across EU
Target Customers: Cultural ConnoisseursTarget Customers: Cultural Connoisseurs
LeviLevi‘‘s Red collection & Vintage Clothings Red collection & Vintage Clothing
NonNon--LeviLevi‘‘s Products & Art Bookss Products & Art Books
„„Chill outChill out““ Television RoomTelevision Room
Intimate Retail Experience & selfIntimate Retail Experience & self--discovery of Brandsdiscovery of Brands
RestoringRestoring of Leviof Levi‘‘s Brands Brand
AIM: Introducing LeviAIM: Introducing Levi’’s Brand to s Brand to Target Costumers Target Costumers ““Hang OutsHang Outs””
Presence in Clubs, Concert Venues, Presence in Clubs, Concert Venues, Websites & FanzinesWebsites & Fanzines
Sponsoring Bands and Youth EventsSponsoring Bands and Youth Events
=> => New Advertisement StrategyNew Advertisement Strategy
Massified PromotionMassified Promotion
Flat Eric Flat Eric –– LeviLevi’’s is again s is again ““CoolCool””
Question 4Question 4
Explain the apparent contradiction Explain the apparent contradiction
between Levibetween Levi’’s concern for cuts concern for cut--
priced Levipriced Levi’’s appearing in EU and s appearing in EU and
its decision to launch a discount its decision to launch a discount
brand in the USA?brand in the USA?
LeviLevi‘‘ss in EU and in EU and thethe USAUSA
LeviLevi‘‘s EU s EU –– Average PricedAverage Priced
LeviLevi‘‘s US s US –– LowLow--Cut PricedCut Priced
LeviLevi‘‘s EU threatened from s EU threatened from ““Gray market GoodsGray market Goods””
TescoTesco & Costco imported low& Costco imported low--cut price Levicut price Levi’’s Jeanss Jeans
Purchased outside a manufacturer's approved distribution channelPurchased outside a manufacturer's approved distribution channelss
Violated European trademark laws and damaged the brandViolated European trademark laws and damaged the brand
Levi Strauss solved the Problem in EU Court of JusticeLevi Strauss solved the Problem in EU Court of Justice
Thank You for Your AttentionThank You for Your Attention