Olya Dyachuk , Fernanda S. Russo, Karim H. Hussien, Abiodun Ogundele

Lecturer: Dr Wilson Ozuem

LEVI’SLEVI’SCase study analysisCase study analysis

OverviewOverview

Levi’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 backgroundCompany 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 BRAND THE BRAND

ANATOMY OF ANATOMY OF

LEVI’SLEVI’S

David Jobber and John Fahy 2009

• Brand domain the brand's target market. This explains the target market of Levi's 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 the target audience and that was why the sales fell from $7.1b in 1996 to $5.1b

in 1999 because the younger generations found other competitors that are more appealing like Gap, Diesel, Wrangler. The competitors product was adopted instead of Levi’s because the brand domain of Levi’s was neglected the

younger generations.

THE BRAND THE BRAND

ANATOMY OF ANATOMY OF

LEVI’SLEVI’S

POSITIONINGPOSITIONING

“ Although brand positions, like brands themselves, exist in people’s heads and hearts, a company’s marketing communications can greatly influence how customers perceive a brand in relation to competition” (Hans Ouwersloot and Tom Ducan, 2008)

Is it retrievable?

Massive market Young consumers

Maintain the idea that Levis is again the cool brand

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 Restoration of a successful brandsuccessful brand

“Fulfillment of customer needs, or delivering customer value, in turn increases customer loyalty” (Laitamaki&Kordupleski, 1997; Gronholdt, Martensen&Kristensen, 2000;Blattberg, Getz&Thomas, 2001)

•From 1999-2005 Levi's has launch a new product to keep up with the ever changing consumer needs.

•Reinforcing itself through tailored products for different customer bases.

•With the launch of a new product a supportive campaign is created .

“Brands add value by differentiating the firm’s product and providing consumers with confidence in the rational and emotional benefits of the offering” (Doyle, 2001)

•With the opening of a new levi’s un-branded store, targeting ‘cultural connoisseurs’.

•The use of a guerilla technique called “self-discovery”.

Restoration of a Restoration of a successful brandsuccessful brand

“A Source of competitive advantages that is getting increasing attention comes from creating, communicating, and delivering superior value to customer” (Woodruff and Garndial,1996; Woodruff, 1997)

•Altering the approach to massified promotion with the use of viral communication to penetrate the youth culture.

•Gently pushing towards the idea that Levi’s is “cool”

Restoration of a Restoration of a successful brandsuccessful brand

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)

‘‘Anti-Fit’ – new urban Anti-Fit’ – new urban street approach street approach

Objectives at different stages of adaption and life cycle. (Dahlén, M., Lange, F., and

Smith, T., 2009, p.96)

•Levi’s was on the Decline stage.•However the brand was well-known and had a

strong heritage (since 1873).

•501 was one of the Brands in the line that could be revive. It had to target the hip-looking 15-24 teens and young adults group.•The Brand’s image was radically changed. From

the more epic style of ads with a more urban street approach. Sexy, flirting, free.

STP Process (Baines, Fill, and Page, 2011, p.217)

Free, sexy, stylish, fashionable design attracts young audience: low cut loose fitting baggy lookTo wear the new 501 to look cool.

Jeans designJeans design

In terms of creating a new image among target audience 501 had to set a Feeling based 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):

Advertising Advertising strategy.strategy.

QuestionsQuestions