Levi Strauss Signature is a trademark of Levi Strauss. The company manufactures and sells denim and denim items for the whole family. The following marketing plan is related to a horizon of six months and one year in the launch of the brand in the three selected European countries of United Kingdom, France and Germany. The final version of the plan was dated April 10, 2006.
Since 1873, the denim clothing market has been a favorite field of study. This activity constitutes the heart of the business. Based in San Francisco, the company employs 12,300 people and out of the 64% of the net sales in the Americas, 26% of these sales were provided in Europe. In 2003, a new brand was created: Levi Strauss Signature, it was first launched on the American market through its partner, Wal-Mart.
In a world where networks of hypermarkets (mass channels) are growing, it had to be present on the jeans market of cheap quality, by following a new slogan: "Sell when people buy". In 2004, it was time to launch the new concept, and targeted three key countries: France, The United Kingdom and Germany. The convergence of the countries of the European Union helped to facilitate a culture standardized marketing approach in its entirety. It will, however, be wise to consider some differences between the three target countries in order to optimize the approach.
The objectives for the brand are primarily to find profitable results by boosting the consumption of the jeans. It is time for the brand to be present across mass channels. In a highly competitive world, the mark must still maintain a certain standard while positioning the height of the MDD.
By penetrating these networks on the three European countries, the company can afford to be a launching pad to all other countries in Europe and will soon experience the same enthusiasm for the mass channels. Keeping this in mind, it the recommendation given was the installation of the Levi Strauss Signature on the shelves of Wal-Mart and Carrefour.
With regard to Germany, where the mass channels are slow to attract consumers, it will be wiser to strike first at the gates of VISS ensuring parallel mail, before following the introduction of Wal-Mart in the country. The distribution seems to be the only element of the marketing mix to be adapted according to the country, at least in the short term. Also, the price, product and promotion policies are essentially identical. It will still take care to sort out the existing differences between U.S. and European markets for these three variables.
The various strategies that come to LeviStrauss in the selection of distributors of "Levi Strauss Signature" in Europe and, secondly, the one that seems most relevant. It seems clear that the target of Levi Strauss is a customer looking for Jeans"mid-tier" which will lead the brand positioning and pricing. Thus, it will focus more on the choice of distributors and communication to implement accordingly to the choices that seem relevant.
Tags: Levis brand, launch Levis Strauss, strategies for launch and marketing
[...] This model is not available in Europe. To meet the needs of its European customers, "Levi Strauss Signature" would benefit from making minor adjustments to its products in terms of the denims "used" (the fabric is rubbed with small pumice in order to wash out and make it more soft), no frills, comfortable (the jeans clothing is associated with relaxation in Europe where the "Friday-wear" remains a marginal practice). Regarding possible disparities within Europe, they are too small to be taken into account: adapting products to every country in Europe would be too expensive for the company Levi Strauss, as well as "Levi Strauss Signature" which is a collection of entry-level garments, sold at low prices in supermarkets. [...]
[...] By entering these networks in these three European countries, the company can provide a launch pad to all other countries in Europe which will soon experience the same enthusiasm for mass channels. It is in this light that we recommend installing the Levi Strauss Signature brand on the shelves of Wal-Mart and Carrefour the British French brand. With regard to Germany, where the mass channels are slow to attract consumers, it will be wise to first knock on the doors of VISS ensuring parallel communication in the mail, before following the introduction of Wal-Mart in the country. [...]
[...] It must nevertheless beware of the existing differences between the U.S. market and the European market for these three variables. Part 2 : ANALYSIS We will first analyze the changing market in which Levi Strauss operates. Subsequently, we analyze the company to determine its strengths and weaknesses. Finally, we discuss the opportunities and threats that the product will face. Chapter Market Analysis We will begin by discussing the technological market for jeans. Since 2002, Jeans have seen a major technological revolution. [...]
[...] In million pairs of jeans were sold in our target countries and the trend is rising. Thus, since 1990, the jeans moved up in the range and grew without encroaching on other segments of the pants .The strongest potential markets are the United Kingdom and France. With respect to distribution networks, we can say that the VISS (Vertically Integrated Specialized Stores) such as Zara or Benetton are also experiencing strong growth and now represent 50% of sales volume. However we must not forget that today, more and more jeans are sold in supermarkets. [...]
[...] The market can surprise us and react unexpectedly. Thus there will be a periodic adjustment procedure, based on sales and results which we obtain on the products. To resume the schedule, it will take place between the two market studies: Chapter Calculation of cost / benefit To determine whether the allocation of resources is appropriate, we will calculate the following: Total cost of production and launch of the range Turnover in the same range The higher this ratio is, the better the resource allocation will be. [...]
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