...LEVI STRAUSS JAPAN K.K. CASE REPORT TIME CONTEXT : May 1993 POINT OF VIEW : Mr. A. John Chappell President and Representative Director MAIN PROBLEM: Levi Strauss Japan K.K. is faced with the dilemma of shrinkage of jeans market. It appeared that after two years of shrinkage (1990, 1991) the market contracted further in 1992. SECONDARY PROBLEMS: 1. Part of the shrinkage of the market can be attributed to the very selective way of choosing retail outlet and sales agents of Levi Strauss Japan K.K. 2. Another cause of market shrinkage is due to the specialization of competitors mainly on women’s jean that brought the industry to a stiff competition. 3. In the side of Japan government, another factor detrimental to the company’s market size is its imposed policy like lowering birth rate and demographic shift to older population which Levi Strauss needs to cope. COMPANY OBJECTIVES: To increase market share of Levi Strauss Japan K.K. from 16% to 20% by the year 1995 and continuously produce quality products that never goes out of style. AREAS OF CONSIDERATION: SWOT ANALYSIS: STRENGTHS 1. Levi Strauss Japan K.K. has an established name in the jeans industry since it had been in operations last 1971. It has been known with its quality product that never goes out of style. 2. LSJ employed a similar strategy to Levi Strauss in the US emphasizing heavy advertising spending. Since 1976, LSJ spent...
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...Case Name: Levi Strauss – Case 1 Short Cycle Process: • Who: Levi Strauss Management • When: 1995 • Where: United States/Globally Case Analysis: Issues #1 – Customer Satisfaction & the “Perfect Pair” Kiosks The “Perfect Pair” kiosks pilot project has been operating for a year now, and this has provided enough data to analyze whether Levi Strauss should continue with this project as is, expand or terminate this venture. The “Perfect Pair” kiosks will be reviewed in comparison to the current wholesale and retail operations to determine whether it provides the best return on invested capital. Applicable Concepts Product Pricing and ROIC Value Chain Analysis Product Mix Qualitative Analysis The alternative value chain for these kiosks is significantly changed in comparison to the wholesale and retail operations, and this is due to the processes involved in producing the kiosks end product. The new process reduces the time lag between start to finish of the value chain in comparison to traditional product lines. Expanding the kiosks to other retail locations will provide Levi’s with the opportunity to better respond to current industry shifts, while also providing greater satisfaction to its customers. Since Levi’s is not going to initiate the manufacturing process until after the sale has occurred, the need for intensive budgeting and forecasting is reduced for the “Perfect Pair” kiosks. The new alternative value chain also results in a decrease...
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...Levi Strauss used to say, "My entire life is my business." (Ford, p. 27) This quote shows just how dedicated Levi was to his company. He had a drive inside him to make a booming business and succeeded. His determination for a better life helped him get to where he was in the acme of his life. Levi Strauss contributed to the creation of blue jeans and changed the way people dress in his time and in ours today. ("bio.com", p. 2) Levi Strauss was born with the name Leob on February 26, 1829 in Buttenheim, Bavaria, Germany. He was raised Jewish and lived in a Jewish Quarter. A Jewish Quarter is a small town where Jews would live together. Because of his religion, he and his family were persecuted. He came to America when he was 18 years...
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...Levi Strauss & Co. is a flourishing business. Since the early days, it has been a leader in the garment industry. The original and most famous Levi Strauss product is blue jeans. Jeans have become desirable and even fashionable clothing for not only miners, farmers, and cowboys, but also for movie stars, executives, women, children, and teenagers from all over the world. Throughout its history, however, the company has researched and developed a number of other products. The company now markets a wide range of clothing and accessories, all under the brand name Levi’s. Many new Levi products have been launched over the years. Some of these have succeeded beautifully, but others have flopped completely. The company is still best known, however, as the maker of Levi jeans, the pants that are guaranteed to shrink1, wrinkle, and fade2. In 1954, flushed with the success of the cotton twill pants it had introduced a few years earlier, Levi brought out a line of permanent press (no-iron) slacks. Within six months, 5 out of every 100 pairs sold had been returned, and Levi had to admit it didn’t have the right fabric for permanent press. Fifteen years later, as the company was planning its major expansion, it hit on a couple of equally dramatic flops. First was the denim bathing suit—which, when wet, weighed the wearer down to the point of imminent drowning. Next was a line of disposable (throw-away) sheets and towels. These, Levi discovered, were not high on the consumer’s list of priorities...
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...LEVI STRAUSS & COMPANY CASE STUDY Cevdet KIZIL Master of Science in Organizational Leadership Program 1- Knowing that its managers are willing to trade off some economic efficiency in order to operate according to their collective view of what is “ethical”, would you buy shares of stock in this company? Why or why not? First of all, I think we are experiencing a paradox in this situation. Because, the company is trading off economic efficiency in order to operate, but it’s a well known fact that economic efficiency is one of the factors which affects the price of stocks. On the other hand, let’s say the company did set economic efficiency as a priority and decided to close some of its plants. This will mean laying off several employees. Thus, the current condition really makes is tough to judge. However, I would still buy shares of stock in this company. Because, company reputation, image and responsibility are also effective factors. Furthermore, I believe that Levi Strauss & Company’s ethical view will help them to win in the long-run. They may experience losses and they may not make profits in a short period, but I think that company’s ethical view will also affect their stock price, profitability and brand in the long run. For example, Margery Kraus, President and CEO of APCO Worldwide also justify my opinions with her words “Play by your own rules and ethics. In the long run it will pay off”. As a result, because of all these reasons, I would buy shares...
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...Levi Strauss and Co.: Creating a Sub-Brand 1. How would you characterize Levi’s branding strategy in general? What are the positive aspects? Are there any negative aspects? Branding strategy according to businessdictionary.com- the long-term marketing support for a brand, based on the definition of the characteristics of the target consumers. It includes understanding of their preferences, and expectations of the brand. Regarding Levi’s specifically, the case discusses that the branding strategy is identifying the quality of the clothing itself. Key words such as durable, dependable, and quality are often words used throughout the marketing campaigns. Generally speaking, they are simply targeting almost any category: rich, poor, etc. Although no company is perfect, I do believe that there are no significantly negative aspects about Levi’s branding strategy. 2. Analyze the Dockers communication strategy at the time of the launch. How did it fit in with past Levi’s advertisement efforts? How did it contribute to brand equity? Communication strategy according to epa.gov- Should include: outlining the objective/goals of the communication, identify key stakeholders, define key messages, and specify the mechanisms that will be used to obtain feedback on the strategy. Brand equity according to investopedia.com- the value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. At the time of the launch...
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...* * * * * Name :Jeow Zhi How * Student ID :13019914 * Subject Code :MKT2054 * Table of Contents Introduction 2 Social-class microcultures in consumer behavior 2 Implications to marketing practitioners 3 Suggestion for Improvement 4 Conclusion 4 Reference list 5 Introduction Market nowadays is so rapid-constantly changing and so broad. Company needs to adapt to these characteristics of the market and also understanding the consumer’s behavior in the market for them to survive and outrun their competitors. This discussion would further examine the company, Levi Strauss (Levi’s), marketing strategy in the garment industry in the context of Malaysia and also suggestions would be given for improvements. Levi’s first entered into the garment industry in 1873 with the birth of the first pair of jeans. Levi’s has been improving since and now, it is one of the world largest brand-name and also a global leader in jeanswear, according to San Francisco(2014). After gaining reputation as well as high profit, they have been selling other garment products besides jeans, such as clothings, caps, belts, and so on. Social-class micro cultures in consumer behavior A social class is a huge group of people, who have a similar position in an economic system, said by Moffitt(2015). Differentiating, positioning, and targeting different social class plays an important role in marketing. Consumers from different social class have different...
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...Important Test questions –B200B Question (1): Differentiate between the following: 1. Marketing and selling The Answer: Marketing: Marketing means working with markets to bring about exchanges for the purpose of satisfying human needs and wants. Marketing must be understood not in the old sense of making a sale – selling – but in the new sense of satisfying customer needs. Selling Selling or promotions are part of a larger marketing mix, the concept is typically practiced with unsought goods – those that buyers do not normally think of buying, such as encyclopedias and funeral plots it starts with the factory, focuses on the company’s existing product and calls for heavy selling and promotion to obtain profit sales. Consumers will not buy enough of the organization’s products unless it undertakes a large scale effort in selling and promotion. A selling oriented organization thus focuses on short terms results; because they care only for their sales not for customer’s satisfaction and they are not searching or looking for long term relationship with customers. 2. Goods and services Answer: Goods and services Goods (tangible, stored, production precedes, consumption, low customer contact, transported, quality is evident) Service (intangible, can't be stored, production and consumption are simultaneous, high customer contact, can't transported, quality difficult to judge) 1- Tangibility: - Goods are tangible and services are intangible...
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...entirely inappropriate in another group of countries. However Levis has being able to success turns on its ability to create a global strategy that does not strangle in local initiative. It is a delicate balancing act, one that often means giving foreign managers the freedom needed to adjust their tactics to meet the changing tastes of their home markets. Levi always tries to minimize the degree to which culture prevents them from producing standardized promotional campaigns. This is because of the benefits of economies of scale and the higher quality that can be obtained for a single advert than for a multiplicity of local adverts. International Marketing Management Levis Strauss & Co. University College Dublin 3 Culture can also be a barrier in relation to the suitability of the product in particular local markets. Countries differ in their tastes and fashions may create the need for adaptation. For example, in Islamic countries females are discouraged from wearing tight fitting dress. Likewise, Japanese consumers prefer tighter fitting jeans than the American counterparts. It is therefore evident that fit, design and style of jeans need to be adapted to meet the requirements of the local buyers. The appropriate colors to use both in the product and the promotional materials also have cultural dimensions. For example, the white color is associated with death in China but black is the color of death in Europe. Levi Strauss when setting up its own direct sales force found that the...
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...case, problems can occur due to ethical and cultural barriers in global expansion. In this paper, I will attempt to show some of what a global organization and a cultural issue that affects their interactions outside the United States by identifying and comparing some of these cultural differences. One company that faces these cultural issues daily is Levis Strauss and Company. Levi Strauss and Company is a large American company found in 1853 and it well known for its denim line. Currently Levis Strauss and Co. has operations in over 110 countries with over half of its corporate revenues coming from outside the United States. In American history, we have all heard complaints of companies in the garment industry hiring underage employees outside the United States and poor working conditions. Levis Strauss and Company has not been left out of these accusations. In the United States, child labor is considered unethical and illegal. Levis Strauss and Companies has established a “Worldwide Code of Business Conduct” along with its “Global Anti-bribery and Anti-Corruption Policy” (Levis Strauss and CO., n d). Within Levis Strauss and Companies “Worldwide Code of Business Conduct it states” These...
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...Introduction: Levi Strauss & Co. (LS&CO.) is one of the world's largest brand-name apparel marketers with sales in more than 110 countries. There is no other company with a comparable global presence in the jeans and casual pants markets. Today, the Levi's® trademark is one of the most recognized in the world and is registered in more than 160 countries. The company is privately held by descendants of the family of Levi Strauss. Shares of company stock are not publicly traded. The company employs a staff of approximately 15,000 people worldwide, including approximately 1,000 people at its San Francisco, California headquarters. Levi Strauss & Co currently makes jeans in approximately 108 sizes and 20 finish fabrics. With 2014 net sales of $4.75 billion, the company is committed to building upon strong heritage and brand equity as they position the company for future growth. There are more than 60000 retail store worldwide which includes 2800 franchised store and also 530 company-operated stores around the world. The company is privately owned by the family of Levi Strauss. Brands: The products of Levi Strauss & Co are sold under four brands: Levi's®: Since their invention in 1873, Levi's® jeans have become one of the most successful and widely recognized brands in the history of the apparel industry. Levi's range included 1. Tops, sweaters, jackets, and outerwear 2. Kids wear 3. Footwear and hosiery 4. Loungewear and sleepwear ...
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...distant from existing customers, products, and channels” Finally, the fourth cause is the talent bench shortfall that is “a lack of leaders and staff with the skills and capabilities required for strategy execution” Authors emphasize that these causes are mainly within management control since they result from “a choice about strategy or organizational design” They point out that awareness and understanding of these causes assist companies in avoiding the growth stalls. In addition, the article demonstrates few practices that some companies use to predict and prevent the problem. The article provides examples of companies that have faced the crisis. For instance, the premium position captivity reason was among the main factors causing Levi Strauss to lose its share of market. The company failed to note changes in customer preferences and demand. As a result, companies responsive to a new customer demand successfully entered the market and gained ground. Next, 3M fell into the innovation management breakdown trap when they decided to launch new products in the market. Almost every company in the world...
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...Brand Building your name Class date Instructor name Brand Building Part 1: Branding and Brand Positioning Since high school denim favored the Levi & Strauss blue jeans. The 45 year old male customer with two children who is working in corporate sales for competitor in the cellular industry. Regarding brand preference, the 45 year old customer responded that he wants to try popular brand because many people speaks high about it. Customers' can be loyal only if they believe that the product has some quallity compare to competing brands. The Levi Strauss provides comfort and perfect fit jeans. Levi company starts to produce a new product like denim jackets, that consumer was very much eager to try it on because of thier other good quality products. He believes that the jackets would be the same quality like its other products. Consumers' like about this brand is that with washing it becomes softer and softer than before. Though the consumer has purchased other brands, the Levi Strauss brand represents a value that is hard to find in competing products. One perspective on brand equity, known as the information economics perspective argues "that a brand name acts as credible signal of product quality derived from perceived firm costs or investments" (Anderson, 2007). In other words, the consumer has come to associate the brand with a recognized level of quality. In the case of the consumer interviewed, the perceived quality is in the fit and comfort...
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...Company Overview From our founding more than 157 years ago, Levi Strauss & Co. (LS&Co.) has embodied the energy and events of our times, inspiring people from all walks of life with a pioneering spirit. We are the original jeans maker. Our history and longevity are unique in the apparel industry. From our humble start, the company has grown into one of the world’s largest brand-name apparel companies. In 1853, Levi Strauss opened a wholesale dry goods business in San Francisco that became known as “Levi Strauss & Co.” Seeing a need for work pants that could hold up under rough conditions, he and Jacob Davis, a tailor, created the first jean. In 1873, they received a U.S. patent for “waist overalls” with metal rivets at points of strain. The first product line designated by the lot number “501” was created in 1890. Through profits with principles, we are committed to making a positive difference in the communities in which we operate. This history of responsible business practices, rooted in our core values, has helped us build our brands and engender consumer trust around the world. We design and market products that people love and trust. These products include jeans and jeans-related pants, casual and dress pants, tops, jackets, footwear, and related accessories for men, women and children under our Levi's®, Dockers® and Signature by Levi Strauss & Co.™ brand names. We also license our trademarks for a wide array of products, including accessories, pants, tops, footwear, home...
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...ase Reading – The Levi’s Personal Pair Proposal The case talks about Levi Strauss and Co, a privately held American clothing company known worldwide for its Levi’s brand of denim jeans. Levi’s was approached with a new concept called the Personal Pair. Custom Clothing Technology Corporation had offered Levi Strauss a joint venture proposal that would combine the Levi’s core products with emerging technologies of mass customization. CCTC’s plan was to make special customized jeans that would fit to meet each customer’s unique needs and taste. The problem is that Levi was not sure if they should accept the proposal or not. I analyzed the case by looking at the pros and the cons of the personal pair concept. I though one of the biggest cons of the program was the wait time. A person would first have to come in to get their sizes taken and than would have to wait an additional 3 weeks to get their product. Another con was that Levi would not carry any finished products, which meant that if someone wanted to buy a pair of jeans at the store they would not be able to purchase them and instead would have to pay a higher price to wait 3 weeks for their jeans. I would say that they should reject the proposal because the cons outweigh the pros. The new technology would increase the price of their product by adding another $15 to a pair of jeans, which would be a huge disadvantage for Levi. Levi was already struggling in the lower and upper ends of the apparel market and adding another...
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