Introduction/Key Issues
This executive summary will provide insight into Levi Strauss Japan K.K.’s (LSJ) current market strategy as it stands in 1993 and provide recommendations to improve their marketing strategy based on the environmental threats LSJ faces. LSJ experienced a reduction in demand of their jeans in the Japanese market between 1990 and 1992 (David, et al). The reduction can be associated with LSJ’s discriminating process of selecting both retailers as well as the low ratio of sales agents. Another factor inhibiting LSJ’s market growth is due to Japan’s lower birth rate, resulting in a shift of the demographics to an older population as well as Japanese students requirement to wear uniforms, resulting in fewer days to wear jeans (David, et al).
The Japanese fashion market focus is based primarily on trends and views jeans as a fashion statement, not as an everyday component of their wardrobe. In comparison to the United States, the Japanese market differs completely in their view of functionality of jeans – jeans are part of the Americans basic everyday wear, however Japan views jeans as a high-end fashion statement.
Recommendations
In order to increase LSJ’s market share is to utilize the available channels of distribution LSJ has access. LSJ needs to regain its prominence as a high quality jeans manufacturer to different market segments, LSJ needs to diversity its product line in the jean market and attract additional market segments. In order to combat the high school uniform mandate, LSJ should incorporate a cost effective uniform in their line by working with the high schools to either develop an LSJ uniform or incorporate one of their existing brands into their program. Once additional threat that should be addressed, is the growing number of competitors LSJ faces Big John, Edwin, Wrangler Japan, and Bobson (David, et al).
