Levi's Case Study

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Category: Business and Industry

Date Submitted: 02/26/2012 10:53 AM

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Problem:-

* The Dockers original brand has been diluted by the creation of numerous sub-brands.

Causes Of Problem:-

* Levi's brand image is very strong it cannot maintain its brand image anymore as a result of missed fashion trends.

* The Dockers brand, particularly in light of enhanced competition in the casual wear segment from rivals such as Lee and Wrangler and store-brands including those of J.C. Penney, is associated with older consumers and no with younger fashion-conscious trendy consumers.

* Instead of accentuating its core brand values, Levi’s has confused jeans buyers with an apparently limitless array of different styles.

* The new "fashion-forward" Dockers Recode brand extension bears a greater resemblance to Slates products than the original 100 percent cotton Dockers.

Alternatives Solutions to the Problem:-

* Levis must determine whether or not it should return to its original Dockers concept and accept a limited market share, spin off the brand entirely to refocus on its core jeans business unit, modify existing sub-brands and brand extensions (or eliminate some of the less profitable ones).

* Develop a new brand line and image to gain market share among younger consumers.

* Levi’s stands for anything it stands for ‘the original jean’. In order to fully recover it will need to consolidate and strengthen this identity.

Best Alternative Solution:-

Levi has to come up with new strategies to overcome its competitors that have brought new fashion trends and low price products to the apparel industry. The apparel industry is considered a mature industry with numerous competitors. The competitors offer similar products and services that Levi’s can produce. Therefore, product differentiation will be the key issue in order to increase the perceived value of the new product.

Implementation:-

Levi Strauss should create a new premium denim brand. The new premium denim brand must be cheaper, high quality and...