The History of Levi`s Jeans

The History of Levi‘s Jeans
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Levi‘s Jeans was launched in 1873 by Levi Strauss, a bavarian
immigrant in San Francisco
Originally they catered to the needs of the working class factory
workers, farmers, and miners
Sales skyrocketed in the 50s and 60s through endorsements by
James Dean, Marlon Brando, and other rebellious figures of the
time
The History of Levi‘s Jeans
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In the 1980s Levis began aggressively using
televison advertising to market their 501 blues
campaign
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Sales and profits began a 12 year increase
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The 501 jeans represented social acceptance with a
mild sense of rebelliousness for amongs its wearers,
and was the main reason for the company‘s success
Levis 80s commercial
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A survey in the 90s revealed that people who
thought Levis was „cool“ plummeted between
1994 and 1998
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What happened?
Rap Music Happened
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Baggy jeans as worn by rap artists
at the time became the New Trend
People no longer thought tighter
fitting jeans (such as Levi‘s) looked
cool
As a result of this style change
Levi‘s jeans sales crashed in the
late 90s
In 1999 Levis had to close 30 of
their 51 factories
Question 1
„ Using the
anatomy of the brand
positioning framework, analyse the
Levi‘s brand in 1996 and 1999. Why
has the positioning of the brand
changed?
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In 1996 Levi‘s reported record one year sales of $7.1 billion and a
profit of more than 1 Million
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In 1999 Sales had fallen to 5.1 billionand barely any profits were
made despite closing 30 factories.
Levi‘s Brand Domain
1996
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15-25 age group.
cultural trendsetters obsessed with being
„cool“
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Unchanged brand domain
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Retrieval of core market
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Core market saw Levi‘s as catering
towards the older age groups.
„What kids want is to be acceptible to their
peers. They‘re looking to make an impact
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„Cultural connoisseurs“
with potential partners as well and
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Threats such as Hugo Boss and Tommy
therefore they want to look right“ -Robert
Holloway, Vice president of marketing
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1999
Threats such as JNCO and Kikwear
Hilfiger
Threats to Levi‘s Brand Domain
Levi‘s Brand Heritage & Values
1996
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Classical brand history
Complacency
Rebellious attitude
„Genuine, original,
authentic, real“
1999
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Competed with Wrangler
yet carried a premium
price
Their rebelliousness had
been stolen by brands
such as Diesel
Levi‘s brand assets & personality
1996
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5 pocket jeans (501)
Established name
Label Value
Socially acceptable
High quality
Classic character
Retro cool
Associated with muscle cars
and motorcycles
1999
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Unchanged style
less significant Name
High quality competitor
Out of touch with the youth
„Levis styles are too tight and
for the older generation“
Levi‘s brand reflection
1996
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Perception of taking part in
the history of levis.
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Old school style
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Sophisticated taste
1999
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„If I bought Levis, it‘s like I
bought Wranglers and people
think I‘m cheap, but it‘s still
expensive“
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Old fashioned perception
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Lack of social acceptance
Question 2
Do you believe that the Levi‘s brand
positioning is retrievable? Should
Levi‘s relaunch using a different
name?
Retrieving the brand position
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Levis must cater to their target group and alter
their product line
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Levis must allow different styles into their lines
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Levis must challenge existing conventions rather
than rely on their past achievements if they ever
wish to appear cool again
Retrieving the brand position
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2 target segments (15-25) (25+)
Youth oriented products (Zip off)
Business casual line
Viral communications
Worn jeans
Corporate Identity management
Communicated
Identity
Actual Identity
Conceived
Identity
Corporate
Identity
Ideal Identity
Desired Identity
Should Levis rebrand?
Pro
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Could start from new
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Would get rid of their
uncool image
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Contra
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Could attract previously
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unattainable customers
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Would lose brand
heritage and value
Cost (advertising and
name research)
Risk
Problems are not just
with name
Question 3
Assess the Steps taken by Levi
Strauss to restore Levi‘s as a
Successful Brand?
Restoring of Levi‘s Brand
„ Steps
Taken :
„ Launching of New Products
„ Innovation on the Retail Front
„ New Advertisement Strategy
„ “Massified” Promotion
„ “Self-discovery” Campaign
Restoring of Levi‘s Brand
=> New Products 1999
„ Non-Denim
Jeans- Sta-Prest
Major TV advertising
Campaign feat. Flat Eric
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=> New Products 2000
„ Engineered
Jeans – ‚Twisted Original‘
„ Reinvention of the old 501 Brand
Restoring of Levi‘s Brand
=> New Products 2003
„ Business-Casual
Line - Dockers Recode
S-Fit Trousers, Anti-Radiation
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Levi‘s Worn Jeans
„Rub yourself“
Restoring of Levi‘s Brand
=> Innovation on Retail Front
„ First
Unbranded Store Cinch! – London
„ Stores with same Format, Different Name across EU
„ Target
Customers: Cultural Connoisseurs
„ Levi‘s Red collection & Vintage Clothing
„ Non-Levi‘s Products & Art Books
„ „Chill out“ Television Room
„ Intimate
Retail Experience & self-discovery of Brands
Restoring of Levi‘s Brand
=> New Advertisement Strategy
Flat Eric – Levi’s is again “Cool”
Massified Promotion
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AIM: Introducing Levi’s Brand to
Target Costumers “Hang Outs”
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Presence in Clubs, Concert Venues,
Websites & Fanzines
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Sponsoring Bands and Youth Events
Question 4
Explain the apparent contradiction
between Levi’s concern for cutpriced Levi’s appearing in EU and
its decision to launch a discount
brand in the USA?
Levi‘s in EU and the USA
„ Levi‘s
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EU – Average Priced
Levi‘s US – Low-Cut Priced
„ Levi‘s
EU threatened from “Gray market Goods”
„ Tesco & Costco imported low-cut price Levi’s Jeans
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Purchased outside a manufacturer's approved distribution channels
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Violated European trademark laws and damaged the brand
Levi Strauss solved the Problem in EU Court of Justice
Thank You for Your Attention