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.