Failure of Levi's to its success in the marketing of jeans products.

1. Levi Strauss& Co.
A Market Analysis
By:-
Md. Akram
Sec-A

2.  Levi Strauss & Co. was threatened by
competition, because barriers of entry were relatively
low in the jeans market.
 Some of Levi’s major competitors include:–
 Calvin Klein
 Gap Jeans
 VF Corp (Lee, Wrangler)
 Tommy Hilfiger

3.  The entrance of new competitors had many
effects on Levi’s.
-Levi’s no longer had monopoly power
-more competitive prices lower profits
–Availability of substitutes
–Levi’s Consumers started buying from
competitors which lowered Levi’s market share.

4. Also…
 Competitors successfully started grabbing
Levi’s market due to heavy advertisement and
branding.
 Branding was especially effective for
companies like “Calvin Klein” that targeted
high-end consumers.

5.  Levi’s failed to recognize and enter a new and
booming “premium jeans market”, originating
in 2000 and led by brands such as Seven For
All Mankind, True Religion, and Rock &
Republic.
 Levi’s executives themselves admitted failing
to see the premium jeans trend, and the
company was forced into cost-
cutting, closing dozens of factories and
laying off thousands of workers.

6.  With the rise of competitors and decrease in brand
image, Levi Strauss & Co. made use of edgy
advertisements.
Brand Loyalty & Brand Image
-Many of Levi’s ads stress brand loyalty to
maintain existing customers.
-Some TV ads were set in the late 1800s,
stressing the historic value of the company.
–At the same time, Levi’s ads stressed the
“youthfulness“ of their brand jeans.
TV advertisements were more innovative and
targeted younger crowds.
These marketing strategies however did not help with the
worldwide decrease demand for jeans. This implies that

7. Demand
Price
 In order to maintain revenues, the company
released the Levi’s signature jeans. This
product line appealed to the low-end
consumers.

8.  In 2002, Levi Strauss & Co. made an agreement with the
largest retailer Wal-Mart as a supply-chain strategy to
mass-market consumers.
“Levi’s Signature brand to be sold in Wal-Mart stores
exclusively”
 This was an excellent strategic move because Wal-Mart
was making large sales while Levi’s could not keep up in
sales. This had potential to benefit both the parties.
 By 2002, Wal-Mart was #1 in the Fortune 500 list & Levi
Strauss & Co. was ranked #383.
This partnership was a great success.

9. Thank You