Monday, October 26, 2015

Ch. 14 - Marketing Channels and Retailing

         
Levi's has a couple different marketing channels. They sell a selection of their products to retailers such as TJ Maxx, Macy's and many other popular retail stores. I would have to say that their direct marketing channel is the most well known and lucrative. Levi's differs two options for a consumer to obtain their products directly. The first option is through their worldwide online store that offers one of the largest selections of Levi's products. The second option is in their retail locations, where a customer may choose a product using all of there senses, which personally is my favorite way to shop.
            I recently went to visit one of the five locations of Levi's stores in New york City. Store #185 is on Broadway in-between Broome & Spring in the SoHo district of Manhattan. It is a highly touristic destination known for having popular clothing stores, restaurants, and street vendors. This location has several competing brands in the surrounding area -- Topshop down the street, H&M next door, and Uniqlo across the road. It is easy to say that the consumer has many options as to where they would like to shop.
            Levi's is open seven days a week, Monday through Saturday 10am-9pm, and on Sunday they are open from 11am-8pm. Being in an area with high foot-traffic, and flexible hours, has a noticeable impact on the business, for when I was in there the store was packed with customers.
(Cross-walk- Broadway & Spring)

      It seems that Levi's picked the promotion aspects of the retailing mix for the store very carefully. The signage for the store didn't seem over the top, but it was noticeable and easy to spot from over a block away. With three signs and a very carefully designed windows display, there is no doubt it will catch someones eye. As you pass the location there is a sign outside advertising the days available promotions, which is again subtle, yet noticeable.
(Levi's promotion sign and logo banner)


          For product, you are sure to find the usual classic jeans, but you will also find jackets, shirts, shoes, and accessories. It was quite interesting seeing a large part of what Levi's had to offer all in one location and being able to try on whatever I desired was a luxury that online shopping will never be able to offer. The one criticism that I have was that some of the stacks of clothes weren't well organized. This, at times, made it difficult to find a particular item or size that I was looking for, and made some sections of the store seem slightly chaotic. I think that there should've a been higher customer to employee ratio so that this problem could've been avoided.

(Levi's 501 section)


       Levi's has a very broad price range. Their cheapest item is a bandana for fourteen dollars, and their most expensive item is a $398 leather jacket. As a Levi's fan, it was very hard not to purchase something because everything in the store was set at a very reasonable price for the quality of the products. They carry full price items, and for the people who are in search of an even better deal, a sale section. One can often find that they are running promotions and discounts on regular priced items in hopes of attracting more customers.
(mannequin display, store #185)


        The presentation of the store is extremely clear, and straight forward. The design impressed one thought upon me -- a true American brand. I left with that thought because of two key design features. The first reason is the atmosphere of patriotism within store #185. The American flags, red, white, and blue denim colors of the clothing, and the vintage military tents that were converted into fitting rooms, were extremely interesting and different. They conveyed the message "created in America" without having to state it. Americans love their country, and if a brand as American as Levi's displays their origin, it will greatly appeal to their consumers.
(military tent fitting rooms)


         The second design feature, was the fixtures. The jeans were casually displayed on the table, the wooden platforms, and metal fixtures all gave off a unique industrial style that has long been outdated. I loved these design features. The designers intentions seemed to be an attempt to recreate a 1920's tailor shop, and they achieved that.



          Last, but most certainly not least important, is the personnel. As soon as a customer would walk in, they would be greeted by one of the employees. This is refreshing to see, as retail clothing stores tend to have employees who think that they are too cool, and very often neglect the customers. This is without a doubt not the case at Levi's store #185. It is easy to see that the staff are there to answer any questions that the customer may have, or assist them with any shopping problems that one might come across. Most importantly they complete the atmosphere of this location. Cool, young, and helpful are the three words one would use to describe the staff. This is undoubtedly to make a positive impact on their consumers, which in return will increase sales.
(main cash wrap)

        I'm beginning to sound like a broken record when I say this, but Levi's has seemed to make a successful business move yet again. Store #185 can not only be enjoyed by the average customer, but it could also be admired from the perspectives of both designers and marketing managers. This store is more than just your average retail channel. Its a 1920's tailor shop, its a military base camp, It's a Levi's store.

Monday, October 19, 2015

Ch. 6 - Consumers Decision Makin


   
           Leaving in New York City (the Big Apple), it wasn't uncommon to go about your day enduring the pain of  seeing massive 40 foot billboards. As a consumer, we are abused with advertisements every single day. We are unaware of the terrifying number of times ads are shoved in-front of us. Although that we may see these obstructions everywhere we go, luckily our brain doesn't process it all. Because of selective exposure, we are able to only process the things that our brain would like it to, and for that, I am extremely thankful. Wether you are walking on a popular street in New York City, or driving on one of the major highways in Los Angeles, there is no way of escaping the bombardment of advertisement placed by major corporations. No matter where you are, how you are feeling, or what the temperature is outside, you don't have to worry, for advertisements will always be there for you.
-Sunset Blvd, Los Angeles, CA

-Times Square, New York City


         In my opinion, every business establishment has one motive for advertising, that motive is to sell you their product. Although the motive behind every single advertisement is the same, the one thing that differs, is the companies ability to make it visually appealing and stand out, or make it just another ad. Over the last couple of yeas, Levi's has continued to make intriguing ads. They have come out with ads that appeal to artist, musicians, teenagers, parents, and many more demographics. My wardrobe of jeans consists mainly of Levi's I find their company to be extremely well run, their products to be of high long-lasting quality, and their customer service to be one of the best. When I recently purchased something off of their online store, I also received a coupon for 20% off my next purchase. This kind gesture gave me a lot positive reinforcement on my decision of purchasing of the product, and I responded by buying more of their goods.
-Vintage Levi's advertisement


               Levi's gives me a sense that they appreciate their customers and will go above and beyond to assist you with any complications. There was once a manufacture defect with a product that I had purchased from them. After notifying them, I shortly received a new pair in the mail. Weather  In high school or college most of the people I know owns at least a pair of Levi's 511 jeans (a specific fit of Levi's jeans). They were in a way apart of the culture and lifestyle that we all lived. If Levi's continues to manufacture premium products, and deliver excellent customer service, they will surely be customers favorite.

Monday, October 12, 2015

Ch. 5 - Developing a Global Vision (Levi's)

Levi's


          Levi's (Levi Strauss & Co) is a highly organized and well known international business. They currently operate in over 110 countries. Levi's not only manufactures all over the world, but also has retail store fronts located internationally. With flagship stores in New York, Los Angeles, San Francisco, Tokyo, Hong Kong, Berlin, Paris, and London, you can be sure to find an abundance of the timeless styles that people have come to know and love in any major city.

Levi's London Flagship store.

          Being one of the largest privately owned brands, many different divisions would be necessary to expand internationally and Levi's has done exactly so. The Company has split into three divisions to achieve a better international presence. For the Americas, their headquarters are in San Francisco, California. Their European division headquarters are in Belgium. Last but not least, they have a headquarters in Singapore for Asia, Middle East, and Africa. In the years to come, LS&Co plans to expand into India, China, Russia, Brazil, and Other Emerging markets.

LS&Co headquarters In California


          With such a high demand for their apparel, is it often questioned how the company has been able to support their manufacturing capacities. With over 51 manufacturing contracts in North America, 53 in South America, 97 in Europe, 24 in Africa, and a impressive 432 in Asia, it comes to no surprise that LS&Co has the capability to produce an abundant amount of garments.


LS&Co factory in 1915.



      LS&Co is bound to continue to expand and develop more over time with no geographical barriers. By creating more manufacturing contracts, and opening more retail stores throughout the world, it is sure to reach a permanent and timeless presence in the world. In my opinion, Levi's and many other companies are looking to the growing market in India, and there is no doubt in my mind that Levi's will be one of the first fully and successfully integrated companies.

Monday, October 5, 2015

Ch. 4 - The Marketing Environment


Levi's at Citadium in Paris - SES file photo

As defined Marketing Environment is a marketing term that refers to factors and forces that affect a firm’s ability to build and maintain successful relationships with customers. Levi's Strauss & Co is not exempted from this challenge, and as a result have resulted to ways of combating it.

Long-established brands must innovate, move with the times and strive to turn “moments into momentum” if they are to compete with start-ups, executive vice president and president of Levi’s James Curleigh said.

Unlike other companies, Levi's plans to focus on its business core which is its 501 denims and its biggest market which is the United States, also continues to work on a major restructuring initiative that includes streamlining its planning and go-to-market strategies, implementing efficiencies across its retail, supply chain and distribution network, and improving procurement practices. Below are the arears Levi's wants to improve upon.
  • Working like a start-up 
  • Driving its profitable core business
  • Expanding the reach of its global brands and building a more balanced product portfolio
  • Elevating the performance of its retail channel, including ecommerce
  • Leveraging its global scale to improve cost structure.