LEVI’SCase study analysis Olya Dyachuk , Fernanda S. Russo, Karim H. Hussien, Abiodun Ogundele Lecturer: Dr Wilson Ozuem
OverviewLevi’s faced a problem that their jeans were increasingly regarded as ‘uncool’ in the beginning of 1990s what lead to the fallen in sales.The poor connection with young customers in terms of rap music popularity growth and a new subculture phenomenon development was the major reason.To maintain the current market share and expand it Levi’s had to find a way to attract young audience through changes in their products, brands, positioning and communications.
Company background 1853 - Founded in San Francisco by Levi Strauss 1902 – Levi Strauss dies at the age of 73 1947 – 501 model starts coming off the production line 1966 – The first television commercial for Levi’s jeans aired. 1981 – 501 jeans for women were introduced. Today the products are sold under Levi’s, Dockers, Denizen and signature by Levi Strauss & Co.
THE BRANDANATOMY OF LEVI’S David Jobber and John Fahy 2009
THE BRAND ANATOMY OF LEVI’S• Brand domain the brands target market. This explains the target market of Levis which are majorly the younger generations• Brand assets the distinctive features of a brand.• Brand values the core values and characteristics of a brand. This is the core attitude of Levi’s brand• Brand heritage the background to the brand and its culture.• Brand personality the character of a brand described in terms of other entities such as people, animals and objects.• Brand reflection the relationship of the brand to self-identity.The brand positioning was changed because it was no more appealing to thetarget audience and that was why the sales fell from $7.1b in 1996 to $5.1b in1999 because the younger generations found other competitors that are moreappealing like Gap, Diesel, Wrangler. The competitors product was adoptedinstead of Levi’s because the brand domain of Levi’s was neglected the younger generations.
POSITIONING“ Although brand positions, like brandsthemselves, exist in people’s heads and hearts,a company’s marketing communications cangreatly influence how customers perceive abrand in relation to competition” (HansOuwersloot and Tom Ducan, 2008)Is it retrievable?Massive market Young consumersMaintain the idea that Levis is again the coolbrand Sponsoring and supporting musicians, bands and concerts Introduce brand name into target consumers’ clubs, concert venues, websites and fanzines Relaunch famous collection
Restoration of a successful brand“Fulfillment of customer needs, or deliveringcustomer value, in turn increases customerloyalty” (Laitamaki&Kordupleski, 1997;Gronholdt, Martensen&Kristensen,2000;Blattberg, Getz&Thomas, 2001)•From 1999-2005 Levis has launch a newproduct to keep up with the ever changingconsumer needs.•Reinforcing itself through tailored productsfor different customer bases.•With the launch of a new product asupportive campaign is created .
Restoration of a successful brand“Brands add value by differentiatingthe firm’s product and providingconsumers with confidence in therational and emotional benefits of theoffering” (Doyle, 2001)•With the opening of a new levi’s un-branded store, targeting ‘culturalconnoisseurs’.•The use of a guerilla technique called“self-discovery”.
Restoration of a successful brand“A Source of competitive advantagesthat is getting increasing attentioncomes from creating, communicating,and delivering superior value tocustomer” (Woodruff andGarndial,1996; Woodruff, 1997)•Altering the approach to massifiedpromotion with the use of viralcommunication to penetrate the youthculture.•Gently pushing towards the idea thatLevi’s is “cool”
‘Anti-Fit’ – new urban street approach •Levi’s was on the Decline stage. •However the brand was well-known and had astrong heritage (since 1873). STP Process (Baines, Fill, and Page, 2011, p.217) •501 was one of the Brands in the line that couldbe revive. It had to target the hip-looking 15-24 teensand young adults group. •The Brand’s image was radically changed. From Objectives at different stages ofthe more epic style of ads with a more urban street adaption and life cycle.approach. Sexy, flirting, free. (Dahlén, M., Lange, F., and Smith, T., 2009, p.96) Dahlén, M., Lange, F., and Smith, T., 2009. Marketing Communications: A Brand Narrative Approach. John Wiley & Sons. Baines, Fill, and Page, 2011. Marketing. Oxford: Oxford University Press)
Jeans designFree, sexy, stylish, fashionabledesign attracts youngaudience: low cut loose fitting baggy lookTo wear the new 501to look cool.
Advertising strategy. In terms of creating a new image among target audience 501 had to set a Feelingbased objective to change attitude through the development of brand identity and image (Egan, 2007, p.108). Advertisers go through three steps (Kotler and Keller, 2012, p. 507):