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