Segmenting and Targeting Markets

Week # 14: Segmenting and Targeting Markets

 Levi Strauss & Co created a new brand with different core values to appeal to a different market segment because when you create a new brand to appeal to a different market segment is often cheaper and more effective in the long run than trying to extend an existing brand to fit a new demographic. People with different characteristics may want the same product in somewhat different forms and for different reasons. Therefore, marketers divide people into groups based on certain relevant characteristics, and then adjust elements of their marketing mix to meet the specific needs of each group.

Market Segmentation is a fundamental aspect of advertising to Levi's Jeans and every company that is on business. When Levi's executives lost sight of the market segmentation that launched it to success they loose customers and sales.This happen when Levi's jeans were focus their attention on Dockers, and more recently on slates, executives were distracted from the threat to the core jeans business. They missed all the kids and those are your future customers. For a marketer it is very important to attract this target of young segment because they set fashion trends that influence older shoppers.

Developing and Managing Products (Part II)

Managers have a better chance of successfully marketing products if they understand how consumers learn about and adopt products.  Advertising expenses are high because of the need to educate consumers to try the new product's benefits.

Developing and Managing Products (Part I)

Week #13: Developing and Managing Products

It is true that new product ideas come from many sources, including customers, employees, distributors, competitors, etc... Through studying and listening to more than 60,000 women around the world, the new Levi's Curve ID line utilizes a revolucionary fit system that is based on shape and not size. Taking an exciting approach to measuring a woman's body, Levi's designers identified three distinct body types that account for most women's shapes universally. These are Slight Curve, Demi Curve and Bold Curve. This is how the three sexy Levi's Curve ID fits were born.

The most important factor in successful new product introduction is a good match between the product and market needs- as the marketing concept would predict. Successful new products deliver a meaninful and perceivable benefit to a considerable size number of people or organizations and are different in some meaninful way from their intended substitutes. Firms that routinely experience success in new-product introductions tend to share strong leadership, a history of listening carefully to customers, a vision of what the market will be like in the future, etc...

 In an effort to further understand women's fit frustration, Levi Strauss & Co, conducted a global survey. Revealling include:

-More than half of women (54 percent) try on at least 10 pairs of jeans to find one pair they would buy.

- Most women (87 percent) wish they could find jeans that fit better than the ones they own.

- Most women (67 percent) believe that jeans are designed for women with "Ideal" figures.

- Very few women (28 percent) believe that jeans are designed to fit their bodies.

Survey information of Levi's Jeans is located at : http://www.levistrauss.com/news/press-releases/levi-s-brand-introduces-revolutionary-fit-system-focuses-shape-not-size

Customer Relationship Management (CRM)

Week #12: Customer Relationship Management
 A company wide business strategy designed to optimize profitability, revenue and customer satisfaction by focusing on highly defined and precise customer groups is what we call "customer relationship management".

Levi's Jeans is a customer relationship management system because the company focus its energies on more consumer-driven approaches. The company's efforts to appeal to younger consumers. Levi's executives steps toward this new youth market led through predictable marketing territory: sponsoring music events, researching nightclubs, using web technology to establish a link with college-age consumers. The current youth market, which has embraced bell bottoms, straight legs, boot cut, hard fit, loose fit, baggy fit, relaxed, etc.. almost every wild and unusual style of blue jeans imaginable has sorely tested the stock management capabilities of retailers.

Levi's Jeans has the capability to identify each and every customer and their relationship with their products and services. Because they are concious that understanding customers' buying patterns allows them to control product distribution, inventory and spoilage.

It also gives the opportunity to cultivate a one-to-one relationship with each customer that is the final goal of customer relationship management system.

Integrated Marketing Communications (Part II)

Levi's Strauss & Co has managed to re-invent their jeans brand through the use of different fabrics and cuts that have given their product a new, youthful look. In the product life cycle Levi's Jeans are located on the maturity stage because competition becomes fiercer, and thus persuasive and reminder advertising are more strongly emphasized. Sales promotion comes back into focus as product sellers try to increase their market share. Over the years, the company maintaned profits by providing a wide range of products, capturing new markets and increasing its market shares. Levi Strauss & Co has maintained its corporate responsible image and progressive standards on social, labor and environmental issues, which may have long-run profit opportunities in the future.

Integrated Marketing Communications (Part I)

Week # 11: Integrated Marketing Communications

Levi's adopted brand extension strategy and branched out to introduce Levi's Dockers in 1986 where diversification was built on the trend to smart office wear. Levi's executives pioneered on the concept of "casual friday" and had since managed to establish a leadership position in casual fashion.

Marketing communication is the final and most flexible element of the marketing mix. Through marketing communication firms attempt to inform, persuade and remind customers directly or indirectly about the brands that they sell. We can say that marketing communication represent the voice of the brand and the connection to build relationships with the consumers.

Levi's Dockers has established a leadership position in casual fashion. It was created as the new pants for men as more formal than jeans. The real intention behind this new creation of Levi's Dockers was to satisfy an unfulfilled need in the men's pants market and to appeal to the baby boomers' fashion demands.

In an effort to establish Levi's Dockers new casuals line, Levi's jeans executives identify their key target distribution channel by concentrating distribution in department stores and chains where its majority target consumers of 25 to 49 years old men did their shopping and where one-third of all slacks were sold.

Product Concepts (Part II)

A brand is a name, term, symbol , design, or combination that identifies a seller's product and differentiates them from competitors' products.

The brand image perceived by Levi's products includes durable, affordable, casual, fashionable and adventurous. It is also confortable enough to fit into the workers everyday lives in physical and social sense.

The 501 trademark of Levi's is an original jean, the iconic fit that's cut straight through the seat, thigh and leg. Levi's 501 had become an icon and its brand name had become synonymous with jeans where people tend to associate jeans whenever they saw the Levi's logo. It had successfully been made known to millions of americans and had established its brand image in the hearts of every consumer.

 As we know Levi's jeans positioning is derived from the combination of the brand's personality, values and its rational associations. Levi's personality composes of several characteristics or values with emotional associations, which are defined as Original , Masculine Sexy, Youthful, Rebellious, Authentic, American, Individual and Freedom.

The brand experience is the most important step into a  product's life because customers will explore positive or negative experiences with brand purchase and use.