More Related Content
Similar to Brand Audit and New Product Proposal
Similar to Brand Audit and New Product Proposal (20)
Recently uploaded
Recently uploaded (20)
Brand Audit and New Product Proposal
- 1. LEVI'S MKT:445 Brand Audit and New Product Proposal By Nathan Yung
- 2. The 4p’s- The Basics Promotion Levi’s is a Heritage brand and its legacy alone helps keep the brand in peoples mind. However, Levi’s utilizes strong social media presence with its influencer marketing campaigns with Gen Z celebrities like Emma Chamberlain. Product Jeans, or course. However they also know for their other denim products such as jackets, overalls, and shorts. Price Above Average. Levi’s is the quality standard when it comes to jeans. It’s priced higher than fast fashion but less than luxury brands. Placement Strong retail presence with its own stores as well department stores. Also has a strong online presence with its heavy influencer marketing campaigns and partnerships.
- 3. Positioning Target Market: Middle class, males and females, 20 - 35 years old, usually college students or recent college graduates Category Membership: Jeans Points of Parity Points of Difference Jeans Manufacturer Reasonable pricing Retail & online distribution channels Original pair of Jeans Sizing language (501, 505, etc.) Strong Recall High profile endorsements
- 4. Brand Audit: A Survey on Consumer’s Perceptions
- 5. Survey In order to gain an understanding of consumer persecutions of the brand, I designed, distributed, and analyzed an online survey. The survey was distributed to Levi’s target audience: College students ages 18-25. Participants answered questions about Levi’s and its two main competitors in affordable jeans: Wrangler and H&M. The data used in The survey was developed on Qualtrics and asked the participant to rank relevant associations from 1-5 such as: cool, stylish, quality, class, etc. 1 = Very Negative ; 5 = Very Positive To show how consumer’s perceptualize the brand, a mental map, perceptual map, and a brand mantra was then created using the data collected. For the new product extensions, the data as well as insights from the focus group I conducted were used. Using this data, allowed for extensions that can improve the previous negative associations. The sample size for survey included 50 responses.
- 6. Mental Maps- Levi’s Reliable Classic Comfortable Durable Well Designed Levi’s Predictable Not trendy Common Pricey Boring Negative: Positive: Consumer perceived associations of Levi’s gathered through survey data
- 7. Competitors- Brand Target Market Price Benefits Wrangler Middle class 20-35 years old workwear Average Sturdy outdoor work apparel H&M Lower middle class 15-25 years old everyday Below average Fashionable at an affordable price Levi’s Middle Class 20-35 years old everyday Above average classic everyday jeans How does Levi’s and its competitors compare?
- 8. Perceptual Map- High Quality Low Quality Traditional Trendy Where Levi’s stands in consumer’s minds amongst competitors according to our survey
- 9. Brand Mantra- Emotional Modifier Descriptive Modifier Brand Function Classic Everyday Denim Three words to describe Levi’s brand
- 10. New Product Proposal: How can extensions improve consumer perceptions?
- 11. Levi’s x Telfar This collaboration allows Levi’s to move into trendy and fashionable associations– where Telfar has cemented itself in the past few years. Telfar is the face of affordable luxury designer. With a positioning based around inclusivity and diversity. Telfar has yet to create a denim version of their cult-favorite bags. For Telfar, a collaborations with a heritage brand will help further establish Telfar’s relevancy and longevity as a fashion brand. While Levi’s will be able to refresh their brand and be a “cool girl.” 1.
- 12. Market Trends & Opportunity Size of U.S. Luxury Handbag market (Allied Market Research) 2018 – U.S sales estimated to $58.3 Billion *2026 – projected estimate of $89.9 Billion Telfar’s Revenue 2016 – estimated $102,000 (Financial Times) 2019 – estimated $2 Million (Financial Times) 2022 - estimated $146.5 Million (Business of Fashion)
- 13. As the size of the luxury handbag market and Telfar’s revenue continues to grow, the collaboration has massive potential to be profitable. Many celebrities have been spotted with a Telfar bag. Even Beyonce has cosigned the designer in her song “Summer Renaissance,” further cementing Telfar’s status within pop culture. Market Trends & Opportunity
- 14. Focus Group Feedback Summary Positive: • Has the “cool” factor • Perfect for everyday use. Elevated yet approachable design that will draw eyes but is not flashy. •Negative: • Not appropriate for a night out due to denim material. Casual wear. • Telfar’s exclusive purchase model may prevent some from acquiring the bag at retail price. Key Learnings: People think this is a cool collaboration. Many of the college students surveyed said if they had the financial means, they would purchase the product. Overall, this product is favorable and has little negatives. “The new it bag” “Jelfar”
- 15. 3 Factor Model - about 1. Salience 2. Favorability 3. Uniqueness Does the extension have enough positive equity to be successful? Our survey asked to rank both positive and negative associations. The 3 Factor Models asks the extensions to have more positive associations than negative to be successful. The model also examines what associations are introduced to the parent brand and what is amplified.
- 16. 3 Factor Model Salience This co-brand extension borrows 3 (positive) brand equity elements from Telfar. • Gains: Trendy, Fashionable • Increases: Stylish Favorability This co-brand concept creates a new positive association (“Exclusive”) and overcomes a negative association (“Boring”) for Levi’s Uniqueness This extensions includes PODs from both Telfar and Levi’s. Telfar provides elements of Stylish, Fashionable, and Trendy. This is combines with Levi’s PODs of heritage and Classic. This mixture of PODs creates a product that cannot be replicated and will provide unique and exclusive product to the market that will enhance the brand equity of both brands.
- 17. 4 Factor Model - about 1. Compelling 2. Relevance 3. Consistent 4. Strong How does this extension affect the parent brand? In our survey, we asked consumers again to rank their perceptions. The brand extension ideas were presented to the participants and were then asked how they feel about the brand if the extensions were to be introduced. After gathering the data, we see how the extensions affect the parent brand with the 4 Factor Model. The results tested on how compelling, relevant, consistent, and strong the extension is.
- 18. 4 Factor Model – Compelling Compelling The co-brand extension will affect the parent brand by: • increasing the association of Stylish • Gaining associations of Exclusive, Fashionable, and Trendy • And gaining the Negative association of Gimmicky Levi’s Reliable Classic Comfortable Stylish Well Designed Telfar x Levi’s Fashionable Trendy Exclusive Stylish Gimmicky
- 19. 4 Factor Model – Relevance Feelings * Impact on Levi’s • Self-respect (3.56) • Excited (4.08) • Inspired (3.79) • Cool (4.03) • Secure (3.51) • Fashionable (4.10) • Trendy (4.05) Our survey asked to rank the impact of the Telfar collaboration from 1 - 5. With 1 = strongly decreases, 3 = no change, and 5 = strongly increase Results: the collaboration increases all of Levi’s positive associations Judgements *impact on Levi’s • Quality (2.72) • Superior (3.67) • Comparable (3.64) • Credible (3.44) Results: The collaboration will negatively impact customers judgment on Levi’s product quality but increase Superior, Comparable, and Credible.
- 20. 4 Factor Model – Consistent Emotional Modifier Descriptive Modifier Brand Function Classic * Telfar is on its way to classic recognition within fashion as it has lasted many trend cycles Everyday * Telfar bags are elevated tote bags that people use as everyday bags Denim * Combines Telfar’s iconic design with Levi’s classic denim. Maintains the excellent craftsmanship of both brands How the new product fits within Levi’s Brand Mantra
- 21. 4 Factor Model – Strong Relevance The extensions borrows a lot of positive equity, adds favorable attributes, and dilutes a few negative attributes. Compelling New positive feelings are added judgements are improved. More favorable attributes are added than negative. Fit The new product fits in to 3/3 of Levi’s brand modifiers and 69% of survey responders believe that this is a product Levi’s would introduce. Advantages: Telfar has a large and growing audience that values quality, fashion, style, and value. The collaboration will allow Levi’s be seen as more fashionable and potentially can build off this increased perception in future business endeavors. Disadvantages: Telfar’s ”Drop” purchase model may not allow all those want the bag to obtain it and gain negativity towards Levi’s. Conclusion: 3/3, it is recommended to proceed with the Telfar collaboration. Decisive Rationale
- 22. Levi’s Cafe This initiative aims to give customers a more intimate feel for Levi’s through a curated experience. The idea will offer a space for customers to have light bites and coffee in an immersive experience that is connected to a flagship store. The cafe offers a collaborative opportunity with interior designers, chefs, and artists to bring Levi’s essence into a physical space. The purpose the café is to build customer loyalty, get customers in the store, and give an opportunity to buy. 2.
- 23. Market Trends & Opportunity Size of US. Dining out sector (Mintel) 2009 – U.S sales estimated to $395 Billion 2014 – up to an estimated $482 Billion Size of US. Coffee Shop sector (Mintel) 2009 – U.S sales estimated to $16.6 Billion 2014 – up to an estimated $19.1 Billion “If it harmonizes well with the brand, then it is going to enhance that brand and cement the relationship consumers have with the retailer, they will associate the good sensations, feelings and memories they have of the experience with the brand, the retailer and its merchandise.” – Joe Pine, co-author of The Experience Economy.
- 24. The coffee industry is growing and including an everyday experiential marketing component will allow Levi’s to have different opportunities to engage consumers into Levi’s world. Although it is an unconventional extension, it provides an air of freshness to this heritage brand. Market Trends & Opportunity
- 25. Focus Group Feedback Summary Positive: • People consider this a cool thing to do if they are in the area • If they utilize their partnership with Emma Chamberlain, there will be immediate interest Negative: • Is it interesting enough for people to make an intentional trip to visit? • Seems ”gimmicky” because it is not clothing related Key Learnings: Consumers are wary that this might be gimmicky product with no real value. We hope to improve this concept with creating a more experiential space that can also be used with special promotional events. “Joffee???” “Is this necessary?!”
- 26. 3 Factor Model - about 1. Salience 2. Favorability 3. Uniqueness Does the extension have enough positive equity to be successful? Our survey asked to rank both positive and negative associations. The 3 Factor Models asks the extensions to have more positive associations than negative to be successful. The model also examines what associations are introduced to the parent brand and what is amplified.
- 27. 3 Factor Model Salience This extension is borrowing a little equity from the Parent Brand. The Café is only borrowing Cool for Levi’s Favorability The Café creates a strong association with “gimmicky” due to similar fashion brand cafes such as Gucci and Brandy Melville. However, the extension has also generated new positive associations (Fun and Exciting) and increased the Quality association. Uniqueness Levi’s cafe provides the opportunity to communicate its brand identity with experiential and promotional elements. It is a space where they can be creative with the sensory elements (taste, visual, smell, etc.). While being a fun new way to promote its own new products, influencers, and brand.
- 28. 4 Factor Model - about 1. Compelling 2. Relevance 3. Consistent 4. Strong How does this extension affect the parent brand? In our survey, we asked consumers again to rank their perceptions. The brand extension ideas were presented to the participants and were then asked how they feel about the brand if the extensions were to be introduced. After gathering the data, we see how the extensions affect the parent brand with the 4 Factor Model. The results tested on how compelling, relevant, consistent, and strong the extension is.
- 29. 4 Factor Model – Relevance Feelings * Impact on Levi’s • Self-respect (2.79) • Excited (3.13) • Inspired (3.00) • Cool (3.31) • Secure (2.92) • Fashionable (3.08) • Trendy (3.68) Our survey asked to rank the impact of the Telfar collaboration from 1 - 5. With 1 = strongly decreases, 3 = no change, and 5 = strongly increase Results: Only Secure and Self-respect decreases, all other positive association is increased. Judgements *impact on Levi’s • Quality (2.71) • Superior (3.24) • Comparable (3.16) • Credible (2.89) Results: The collaboration will negatively impact customers judgment on Levi’s product quality and credibility, which will be a concern.
- 30. 4 Factor Model – Compelling Compelling This category extension will affect the parent brand by: • Gaining associations Trendy • And gaining the Negative association of Gimmicky • Will not increase/decrease Levi’s current associations Levi’s Reliable Classic Comfortable Stylish Well Designed Levi’s Cafe Trendy Stylish Gimmicky
- 31. 4 Factor Model – Consistent Emotional Modifier Descriptive Modifier Brand Function Classic * A café a classic place for people to enjoy Everyday *Not an everyday occasion as there will be very few locations in urban cities and this café aims to provide a more special experience Denim * The Café does not function as denim How the new product fits within Levi’s Brand Mantra
- 32. 4 Factor Model – Strong Relevance This extension is borrowing a little equity from its own. It is only borrowing Cool Compelling A few positive associations are added and improved. But this extensions largely increases the negative association of Gimmicky. This concept proves to be risky decision. Fit The new product fits in to 1/3 of Levi’s brand modifiers and only 18.42% of survey responders believe that this is a product Levi’s would introduce. Advantages: Provides Levi’s the opportunity to express their brand image in new ways and increase foot traffic into their retail stores. Disadvantages: Fashion brand café’s have been done many times and has a negative connotation of subpar food & beverages. Can negatively affect Levi’s brand equity. Conclusion: 1/3 Launching the cafe in its current concept is unfavorable. It should not be launched. Decisive Rationale
- 33. Conclusion Levi’s is a heritage brand that is due for a fashionable refresh. The Levi’s Cafe provides something new and limitless branding opportunities. However, consumers feel this extension may be too gimmicky. The Telfar collaboration was overwhelming favorited by both the focus group and survey. This extension will help Levi’s be associated with a trendier crowd and help its brand equity.