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.

 

Product Concepts

Week #10: Product Concepts

A product may be defined as everything, both favorable and unfavorable, that a person receives in an exchange.

Over the last four years, Levi Strauss & Co, one of the most successful companies which produce jeans are constantly changing their products because the outside world keeps changing. Customers are more demanding and powerful. They want to offer something new to people, and at the same time only the proven best quality and highest value product ever.

 In the list of top market players in the fashion industry, the most shining name is Levis fashion brand. Levi Strauss & Co was named after its founder Levi Strauss in 1853. Levi's as leading jeans brand has entered into the international parlance and flooding the market with its designer apparels. Levi's products are marketed under various brand names like Levis, Dockers and Levi Strauss signature.

Sales Promotion and Personal Selling

Week #9: Sales Promotion and Personal Selling

"Advertising offers the consumer a reason to buy; sales promotion offers an incentive to buy".

In june 2009, apparel manufacturer, Levi's Strauss India Pvt. Ltd (Levi's), offered to sell its well-know Levi's brand of jeans and other Levi's products on equated monthly installments (EMI) payable though credit cards. Executives of Levi's jeans knew that this offer would increase sales against the chaotic economy downturn. They planned to arrest its decline in sales through this innovative offer.

On the other hand, Levi's Eco line brand support the "going green" movement in order to promote the Levi's brand, this manufacturer has come out with a promotional campaign centered around their new organic line, Levi's Eco.

Levi's eco line organic cotton will be used to manufacture the clothing. Levi's executives are trying to create change in the future. They want people to buy their new line but at the same time help the environment. They try to make people concious about helping the environment just by wearing the eco line while still being trendy, fashion and concious consumers.

The promotional method used are (print and Tv), personal selling at stores. The estimated cost of the entire campaign was $6.5 millions. It is incredible how much they are willing to spend in order to create interest and build awareness of the new Levi's Eco line. Of course the most attractive target for them are the young demographic of adults 18-34 of middle income who value quality clothing and the hottest trends. Levi's jeans is sending the message that you can look hot and still be eco-friendly.

In fact, creating interest is often considered the most important use of sales promotion. On the other hand, personal selling allows the marketer or seller to communicate directly with the prospect or customer and listen to his or her concerns, answer questions, provide additional information, inform, persuade and possibly even recommend other products or services.

Levi's - America (Go Forth) Commercial

The new campaign of Levi's was filmed in Braddock, PA. The campaign plays up the concept that Braddock residents are decendents of the pioneers who first wore Levi's in 1870s. Levi's jeans executives try to involve real people in this commercial with the idea that real people work hard and they would need sturdy pair of jeans or a trucker jacket to get down to work. Also, they want to show that everybody's work is equally important and we are all workers.

Advertising and Public Relations

Week #8: Advertising and Public Relations

 The Innovation of the rivets in the jeans differentiated Levi's jeans from others because of its increased durability.

The firm positioned its products with changing times and changing demands, keeping existing customers and capturing new markets. Increases in sales ultimately increased profits. There is no more distinctly american item of apparel than blue jeans. For close to 150 years, Levi's jeans have captured the attitude and spirit of americans of all ages.

 Levi's jeans is still weathering the chill wind of changing fashion. Levi's executives are concious that advertising is the best way to build the brand image.

For this reason Levi's will start to shift some ad dollars away from TV to new media that offer interactivity and that attract its sought-after young adults. It is a reality that today's advertising dollars for successful consumer brands are spent on maintaining brand awareness and market share.

Retailing

Continue...

Some pictures of my visit at Levi's Store and my Levi's Bold Curve Jeans.

Retailing

Week #7. Retailing

I think people can be lured into buying products that they don't need by smart advertising. It is for this reason that Levi's brand are looking for trusted, optimistic employees to join their iconic american jeans and casual wear brands.

Believe or not the Levi's Stores sell theirs products to all retailers at the same price. Levis Company doesn't suggest a final price to charge to customers and do not control the retail price of their product in any way. For example the 501 Jeans for Men cost is $64 and The Black Levi's Cost is $78.99 because the colour requires more processing.

A revolucionary retail product for Levi's Company is their new line of Customer Fit Jeans made to fit The Curve of a  woman's body. The new line, Levi's Curve ID, utilizes a revolucionary Fit System based on shape, not size and was created as a result of studying more than 60000 body scans and listening to women around the world of all shapes and sizes. The three types of this amazing jean are the following:

Slight Curve- is designed to define a woman's waist, while accentuating her curves.
Demi Curve- especially to flatter a woman's waist, while smoothing her shade.
Bold Curve- which is my favorite design of jean because is designed to hug the waist, without gapping or pulling. If jeans usually fit in the hips and thighs, but gap in the back , i can said that if you want a perfect fit jean you should try the bold curve.
 
During my visit at Levi's Store in 25 w 14 St(between 5th ave & avenue of Americas), my intention was to figure out about their retail system in prices, clothes styles , customer services , etc...When i walk in the store the customer services provided by the Levi's Jeans employees was excellent. Levi employees introduce the new line what is the Fit Jeans. They suggest to try some of their products eventhough i didn't promise to buy any of their merchadise. I try the Levi Bolde Curve because they said that would be the best jean for my type of body. They were right, it  was a perfect fit for my body. I decided to buy the jean. It cost me $60 dollars but i didn't regreat my decision of  my purchase.  I think that the customer service provide in any Retail Store is the Key to Succeed in this competitive business of sales.

Consumer (decision making)

Week 6: Consumer (decision making)

Levi's jeans executives know that in order for a new brand to establish itself in its market  and for its products to sell succesfully, thus achieving company goals and shareholder profitablitity, a number of key principles concerning consumer behavior needs to be done. The marketing strategy employed by Levi's on their new "Anti-fit" style jeans, and at the importance of consumer behaviour in deriving this strategy is a good example of consumer decision making. Establishing a strong and distinguishable brand image for the "Anti-Fit" range of jeans is the central idea behind levi's marketing strategy for breaking into the competitive market and ultimately gaining a favorable share of the market for designer jeans. Creating the right brand image is largely dependent upon being in tune with the mindsets, beliefs, values and aspirations of the modern, well-informed consumer.

Developing a Global Vision

Week 5: Developing a Global Vision

The iconic american brand of blue jeans Levi's announced that it is going to launch a new global brand in China. The Levi's jeans executives  are envisioning the attration of new consumers from China. This global brand in China represent doing business with a huge economic potential country.

It is hilarious that Levi Strauss & Company 17 years ago walked away from China. The reason of this decision was based on it's shared values, which provides the foundation for all the company's decision making. The leadership of CEO Robert Haas, Levi Strauss has redefined its business strategy. Hass decided to focus on a more value-centered management that would emphasize social responsibility and employee rights. As Hass stated "Values drive the business" (Howard 1990). Levi's decisions to leave China was not easily. A company task force worked for three years on developing guidelines for doing business abroad. The standards developed reflect Levi's shared values. The standards, which became known as the "Global Sourcing Guidelines", have two parts. The first is know as the "Business Partner Terms of Engagement" and addresses specific workplace issues that Levi's international business partners control, such as safe working conditions, fair wages, prohibitions against child labor, etc... Second, it is that company inspectors make periodic surprise visits to job sites around the globe. If they discover violations to those rules, Levi's will either require that changes be made on any particular case with the subcontractor. The company found no major violations of its workplace guideliness after making ten random inspections of its chinese subcontrators. Today Levi's brand jeans are produced in China.

Marketing Environment

Week 4: Marketing Environment

Levi's has realized that the marketing environment presents a never ending series of opportunities and threats. The managers of Levi's are the trend trackers and opportunity seekers. Many opportunities are found identifying trends, directions or events that have some momentum and durability and mega trends as major social, economic , political and technological changes that have long-lasting influence. Within the rapidly changing global picture, the marketers of Levi's jeans are monitoring all these changes and following the six major environmental forces: demographic environment, economic, political ,etc...  

 Target Market
Jeans targets its market by evaluating the wants of customers. Mostly Levi's targets its  market among the following classes: Upper class and Upper midddle class.

Target Market Strategy
The target Market Strategy adopted by Levi's is basically on having long-term relations with their customers and to provide them with the better product.

Corporate Irresponsibility (The Gulf of Mexico Oil Spill).

The Gulf of Mexico Spill

The Bp disaster is an oil spill in The Gulf of Mexico which flowed for three months in 2010. It is the largest accidental marine oil spill in the history of the petroleum industry. The spill has caused extensive damage to marine and wildlife habitats as well as the Gulf's fishing and tourism industries.  The U.S Government has named Bp as the responsible party. Bp oil spill was a pattern of misconduct. This disaster was preventable. The corporate response to these disaster is far from responsible. While Bp has presented a bold public face, promising reparations to those whose lives were destroyed, the process to date has been fraught with avoidance and delay. Believe or not to those who lost jobs, businesses, and worse, compensation years from now is no compensation at all.

The Country of Origin

The country of origin of all the clothes that I wear today,

My Pants (Made in Sri Lanka)
 T-Shirt (Made in China)
Jacket (Made in Bangladesh)
Sandals (Made in Brazil)

Ethics and Social Responsibility

   Week 3: Ethics and Social Resposability

 Levi Strauss & Co is committed to its communities. This company is well known  for its philanthropic activities. The Levi Strauss foundation provides grants to local, regional, or global non-profit organizations in order to support programs that include human rights protections, and monitor and enforce labor, health and safety laws. The foundation also provide funds for disaster relief effors, donations of millions of dollars in charitable contributions to communities, housing and scholarships for the dependents of its employees. The company also contributes to economic development by investing in programs designed to encourage, train and educate people in the business field in order to motivate them  to create small businesses.

 An example of Levi Ethics and social responsability is their project in Belgium. After the closing of the Belgian factories, Levi Strauss negociated with the workers on an appropiate social contract to compesate them for their job loss. They made a commitment to the community. The corporation has continued to provide funds for various programs designed to facilitate economic growth in Belgium.

Strategic Planning for Competitive Advantage

Week 2: Strategic Planning of Levi's Jeans

 The new Levi's Engineered jeans were introduced to the market in celebration of the 10th birthday of Levi's. The amazing fabric is a re-creation of the  first fabric from 1999, an innovative mix of cotton and hemp in an intense Red-Caste Indigo shade. I think Engineered jeans were a successful initiation of  strategic planning because these jeans are an antique that represent a previous era. Definitely, these jeans will be considered collector's items.

An Overview of Marketing

Week 1: History and Mission Statement of Levi's Jeans.