Levi’s® x Alicia Keys | The New Women’s Denim Collection

This another powerful marketing strategy by Levi's. Using a globally loved and respectable celebrity in their commercial is like killing two birds with one stone. In the commercial, she's not just promoting the product she's also empowering women world wild.

Ch. 8 - Segmenting and Target Market

       Market segment is the subgroup of people or organization sharing one or more characteristics that cause them to have similar product needs. while Target market is a group of people or organization for which an organization designs, implements and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges. Levis adopted this strategies in the early 90s when their product where perceived to be uncool by the younger generations. Even though they were the leader in blue jeans denims, the early 90s also ushered in strong competitions from rivals brands like Diesel, Wrangler, Calvin Klein amongst others. Levis knew they have to make products targeting the younger generations if they must remain in business and maintain their strong market share.

       Levi Strauss & Co created a new brand with different core values to appeal to a different market segment because when you create a new brand to appeal to a different market segment is often cheaper and more cost effective in the long run than trying to extend an existing brand to fit a new demographic. People with different characteristics may want the same product in somewhat different forms and for different reasons. Therefore, marketers divide people into groups based on certain relevant characteristics, and then adjust elements of their marketing mix to meet the specific needs of each group.

       Geographical location and extensive market research while of cause not loosing sight of competitors style of production, target market and segmentation. The knowledgeable research done by the Levi's & Co. team has definitely solidified the brand with people of all ages and just like its the favorites brand for the old its also a no brainer for the young. This fit didn't happen by chance, it the result of a consisting effort by marketing team putting up commercials and also making the product available to the consumers by partnering with major retailers and online also. Today we have Levi's in different shapes and sizes from the straight fit, to boot let, skinny tapered to the ripped denims. There's a Levi's for every one.

Ch. 15 - Marketing communication

       Marketing is about communicating the value of a product, service or brand to customers or consumers for the purpose of promoting or selling that product, service, or brand. While, Communication on the other hand is a process by which meanings are exchanged or shared through a common set of signals. With the above definitions it is perhaps easy to understand why and how an 1873 established company as maintained its her relevance up to this present day. Levi's Strauss & Co. did not only earn the right as the first blue jeans company in the world they also are the most trusted jeans brand in the world. All of which are no coincidence, rather a well thought, planned and executed marketing communication strategy that have been effective for generations.


the first pair of Levi's jeans


modern pair of Levi's jeans.


       From the very first pair of jeans to the most recent pairs, one thing is common, Levi's Strauss & Co. logo has remained the same which in itself has guaranteed generations of loyal consumers passing it down to generations. The multibillion dollar company did not have it smooth to the top, of cause they had some bottle necks along the line. One of which is the plummet in sales in the early 90s. Levi's was regarded as 'uncool' thus loosing connection with the younger generation also partly because this was the same era where other big clothing company also ventured into blue jeans production. To maintain and expand it's market share Levi's had to find a way to attract young audience through changes in their products, brands, positioning and communication.





       Marketing communication which is another word for promotional strategy which  in turn satisfies the 4ps of marketing mix (product, place, promotion and price). To win the heart of younger consumers Levi's Strauss & Co. understood that they had to use the media create series of commercials that will promote, inform, persuade, connect and remind the younger consumer why they should be their preferred choice in terms of comfort,  variety and quality. "Although brand positions, like brands themselves, exists in people's head and heart, a company's marketing communication can greatly influence how consumer perceive a brand in relation to competition" (Hans Ouwersloot and Tom Ducan) The Levi's brand understands this which is they decided to be more integrated to younger consumers by sponsoring and supporting musicians bands and concerts. Introduce brand name into target consumers' clubs, concert venues, websites and fanzines and also relaunch famous collections like the Dockers brand. One of my personal favorite Levi's commercial is the one below; mainly because It simply appeals to people of all ages.

Ch. 10 - Product Concept

     




      The Levi's marketing mix begins with their products. Without the tangible products that they offer, the marketing mix and the company would be incomplete. In 1873, the product that changed the path of the company and fashion as we know it was born, the riveted blue jeans.
Levi's dominates the denim market with their heterogeneous shopping products. With the best price-to-quality ratio, it's easy to see why they are the leader of the pack.

        Levi's has grown into an incredibly large corporation, and their product mix has expanded to much more than just blue jeans. It all started in 1873 with the "XX" jeans, and has now reached a whole list of product lines, and a massive assortment of product items. Some of the most popular product lines that Levi's has are the "511" jeans, the classic "501" jeans, and their Made & Crafted premium line. In each of the product lines, you will find a large selection of product items in different colors and sizes.

 Small selection of Levi's product mix.

When Levi's places an advertisement, very often it seems to advertise all of their product lines. At times they will quite discretely place the name of one of the product lines such as the "501" or "511". The advertisements don't appear to emphasize on the product line but rather the whole product mix.
        
          To reduce manufacturing and inventory costs, Levi's has standardize a couple things on a large majority of their products. Their rivets, which hold the points that receive a lot of pressure (most commonly found around the front pockets of the jeans), and their buttons, which are used on jeans, denim jackets and a few other products.

Levi's standardized button.

Levis continues to increase the depth of their product lines and the width of their product mixes to try and reach all demographics and target markets. Levi's can be found at a lower price at Walmart, Target, and TJ Maxx, and If you're looking for their higher quality products, they can be found online, in their retail locations, or in specialty stores that carry their products.

Over the years, companies must adapt and make modifications to cater customers needs, otherwise their share of the market will diminish. Levi’s continues to change the style and shapes of their products. The first pair of "501" jeans in 1890, is completely different than the current pair that is being sold today. Because of popular demand, Levis has started a vintage line that consists of recreations of their older product's fits, fabrics, and details of the bygone eras and you'll be sure to find the older fit of the "501" jean is amongst the product line.

Another one of the major transitions that Levi’s has made is where the denim is manufactured. A majority of the denim is made overseas with the exception of certain products, one of them being the recreated 1890 "501".

501's, Made in the USA recreation jeans.

       Levi’s is a global brand known worldwide. They have two iconic brand marks, that are also trademarks. The first is the “Levi’s” tab on the back right pocket, the second is the bat wing sticking on the back pockets of the jeans. These marks aren’t on every product item, but when they are, it’s hard to mistake these for the products of a different brand.

 -Brand & trademark, bat wing stitch and red tab.

       Their high brand equity is a result of knowing how to put out new products that are consistently successful. They listen to customer feedback, and appreciate customer loyalty, which helps them with new-product sales. Customers keep coming back because of two reasons, the quality of the products, and sales promotion.
Levi’s is a manufacturers brand. Because of this, they’re capable of manufacturing more products at a cheaper rate, and sell them globally at a higher price for a higher ROI than private labels.

Levi's has co-branded with several different companies in the past. Most recently they have co-branded and made a product line with the San Francisco 49ers, increasing their brand equity and market share amongst the football teams fans.  

       No matter where one is, the name doesn’t change. From Tokyo to Paris, Berlin to India, the name’s the same. This increases the brand equity by a large amount. 

        One of the fabulous benefits of Levi's is their flexible return policy. If you aren't satisfied with the product after 60 days of the date of purchase, they will exchange or refund you for the product. The same goes is there is a manufacturers defect with the product, they will gladly take it back as long as its within the time-frame of 60 days from purchase.

         Over the last decade Levi's has reached exponentially fast growth. They're always infiltrating their products into new and old markets, and because they are listening to their customers, they're doing it successfully. It is unsure what lies ahead for this global corporation, but it is without a doubt that it will be successful.

Ch. 17 - Personal Selling and Sales Management

"Advertising offers the consumer a reason to buy; sales promotions offers an incentive to buy"



On August 4th, 2014, Levi's began "Live In Levi's" project, as part of a new global campaign. This Project makes an incredibly easy and accessible touch point between marketing managers, Levi's ,and consumers of Levi's. Consumers were able to upload photos of themselves wearing Levi's product, and share their stories of Levi's products onto social media platforms such as Facebook, Twitter, and Instagram using the hashtag #liveinlevis. In their press release, Levi's stated, "The intention of the project is to celebrate how the world lives in Levi's® by blending storytelling with social media and ecommerce on a global scale". The project got a lot of response and also increase the buzz about the Levi's brand and more importantly created a platform where consumers can directly share their experiences with their beloved brand.



 Since its establishment in 1853. Levi's have managed to not only be the first but the most recognized denim company in the world. Levi’s products are sold in more than 110 countries worldwide through a combination of chain retailers, department stores, online sites, and a global footprint of approximately 2,800 retail stores and shop-in-shops.  Levi Strauss & Co.'s reported fiscal 2012 net revenues were $4.6 billion. The Levi’s® brand epitomizes classic American style and effortless cool. Since their invention by Levi Strauss & Co. in 1873, Levi’s® jeans have become the most recognizable and imitated clothing in the world — capturing the imagination and loyalty of people for generations. Levi's success for generations is through effective research by making sure its product reaches consumers from different part of the world. Constant research and effective management has been the corner stone of their success.

Ch. 16 - Advertising, Public Relations and Sales Promotions

In our consumer culture of shiny-new-object syndrome, it is increasingly unlikely that a brand will survive—much less thrive—for more than a few seasons. But for 162 years, Levi Strauss & Co. has done just that. Since emigrated in 1853 from Buttenheim, Bavaria, to the U.S. and founded his company, there were only 31 American states. Another 32 years would pass before the automobile was developed. Among iconic U.S. brands, only Anheuser-Busch (founded in 1852) has been around longer than Levi’s. (Coca-Cola came about in 1892; Ford in 1903.) 

And yet Levi’s remains a formidable brand today. Fiscal 2014 revenue increased 2 percent over the previous year to $4.68 billion, and the company commands the highest share of the global jeans market. Retailers credit Levi’s for having unique brand assets they can’t get from other lines.
Moreover, Levi’s continues to be considered hip. Complex, a website devoted to twentysomething
males, listed Levi’s among its “15 Brands Hipsters Love,”
Shawn Parr, head of San Diego-based brand and innovation consultancy Bulldog Drummond, whose clients include Adidas, American Eagle Outfitters and Nike, observes, “Levi’s is like the Rolling Stones or Johnny Cash. They’re one of the all-time greats who defy and define the category, and without them, the genre wouldn’t be the same.”
The secret to the longevity of Levi’s actually isn’t a secret at all. The company uses classic brand-building principles to maintain and grow its brand equity. These are fundamental ideals that remain the keys to building a brand with staying power.



Commit and stay committed.

Above all else, Levi’s is authentic—and fiercely committed to maintaining and reinforcing that authenticity.
The company got its start by selling built-to-last pants to miners during the California gold rush. Demand spread across the nation, and as pioneering gave way to manufacturing in the economic landscape of the early 1900s, Levi’s became the clothing of choice for the working class.
These days, Authenticity is one of the most common business buzzwords and desired brand traits—and with good reason. The Authentic Brand Index (ABI) has shown that the stronger a brand’s perceived authenticity, the more likely people are to become advocates for it. Authenticity, ABI’s analysts observe, helps fuel success in today’s markets as consumers search for greater meaning and sincerity from the brands they choose. People desire to connect with products that feel safe and certain. Levi’s clearly identifies its core purpose, attributes and value—and then uses them as a compass for everything it does. This resonates particularly with today’s influential young consumers.
“Brands that create purpose win Millennials’ hearts, and brands that are different and authentic win their minds,” says Jeff Fromm, co-author of Marketing to Millennials.

     

Go for an Emotional Response.

The quality and integrity of Levi’s products is unquestionable. The rivets on the jeans have become a standard around the world, and the signature red-stitched selvage and double-needle stitching are superior design details. But the company’s brand messages have made a more culturally significant appeal.
As my professor would say "its important to make the audience connect with your brand, you must seek their empathy. Levi's has over the past decades cleverly gained the empathy of the consumers with pictures like the one above coupled with some out of the box campaigns such as in 2009 Levi’s stirred viewers with an expertly crafted and beautifully shot campaign titled “Go Forth.” The series of mini-films sets black-and-white images of a Hurricane Katrina-ravaged New Orleans against a soundtrack of Walt Whitman poetry. By celebrating the “brand for pioneers who are in the process of building a new America,” Levi’s once again managed to capture and convey a unique spirit.
In each of these campaigns, Levi’s stoked passion for its brand without describing its wares or promoting product features. In fact, it could be said that Levi’s advertising has systematically avoided selling its products—aiming instead for an emotional connection with consumers.

Defy the trends.

“What has kept Levi’s in the forefront of the ever-changing jean world is their market research— how they test product with a variety of diverse retailers and use that feedback to address various fits, washes and fashion elements to stay current. Evolving with time and putting product in strategic stores and locations and constantly making new product with an affordable pricing while staying true to it core values as been the key to Levi's sales promotion and success.

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.