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Case study LEVIS for Marketing Management

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Bài tập tình huống Marketing Management Phân tích thị trường LEvis phân tích thương hiệu Levis Bài tập tình huống về Case Levis Tuyển tập các bài tập tình huống Marketing Tuyển tập các bài tập tình huống Marketing Quốc tế

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EVEN LEVI’S CAN MAKE MISTAKES

CONCEPTS NEEDED Market research Marketing model

During the 1980s, Levi‟s U.S division was

looking at ways of diversifying away from

its heavy dependence on a jeans market that

appeared to be saturated They had already

introduced Levi‟s shoes, shirts and socks,

which sold quite well among people who

were already buying Levi jeans Now they

wanted to move into the market for higher

priced clothes, in order to attract a new type

of customer to the Levi Strauss brand As

menswear had always been their biggest

seller, it was decider to concentrate on the

male market first

To decide how to meet this objective, a

market research company was commissioned

to investigate men‟s purchasing habits and

attitudes to clothes (a Usage and Attitudes

study) A large quantitative survey was

conducted among a quota of 2,000 men who

had recently spent at least $50 on clothing

When analyzed, the survey revealed that the

entire menswear market could be segmented

into five types of buyer:

 Type 1: Traditionalist (probably over

45; department store shopper, buys

polyester suits and slacks, shops with

wife)

 Type 2: Classic Independent (a real

clothes horse; 21% of market, yet

buying 46% of wool blend suits,

buys at independent stores; expensive

tastes)

 Type 3: Utilitarian (wears jeans for

work and play; 26% of the market;

Levi loyalists)

 Type 4: Trendy Casual (buying

„designer‟, high fashion clothes,

might buy 501s, but usually

considers Levi too mass- market;

19% of the market)

 Type 5: Price Shopper (buys

whatever and wherever the lowest

prices are found; no potential for

Levi; 14% of market)

As the Type 2 Classic Independent men fitted in with Levi‟s objective, the research company was asked to computer analyze the findings so that the behavior and attitudes of this specific group could be split out from the rest of the sample The large total number of interviews made it possible to have confidence in the reliability of the data from this sub- sample It emerged that Type 2 men wanted traditionally styled, perhaps pin- striped, suit; that they like

to buy through independent clothes shops or tailors, rather than at department stores, and that they liked to shop alone, whereas others liked having their wife/ girlfriend with them

To tackle this segment of the market, Levi‟s decided to introduce „Tailored Classics‟ a range of high quality wool suits, trousers and jackets The research showed that these buyers valued quality and fit rather than low prices, so they decided to price their range 10% above that of the competition To avoid direct product comparisons and to ensure that not too large a sales force was needed,

Classic Independent 21%

Traditionalist 20% Utilitarian

26%

Price Shopper 14%

Trendy Casual 19%

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Levi chose to distribute through department

store chains

Having decides on this strategy, its

acceptability to the target market was tested

via a series of group discussion These were

conducted by a psychologist who was to

look for the real motivations behinds

respondents‟ opinions or behavior The

psychologist reported that the Type 2 men

had two misgivings: first they were

concerned that the garments would be in

standard fittings, and so would not provided

the tailoring they wanted; second, although

they could believe that Levi‟s could make a

good suit, they still felt uncomfortable about

the Levi‟s name One said:

“When I think Levi think jeans If they‟re

making suits I have to be convinced”

Another felt that:

“If I went to work and someone said: Hey,

that‟s a good suit, Joe, who‟s it by? I

wouldn‟t feel comfortable saying Levi”

The company‟s marketing executives responded to this by deciding to concentrate

on the separate jackets and trousers in the launch advertising, and let suits

“slipstream” The Director of Consumer Marketing felt certain that:

“The thing that‟s going to overcome Levi‟s image for casualness as no other thing can, is

a suit that‟s made by Levi that doesn‟t look like all the other things we‟ve made Once that gets on the image that says: Oh, and they can also make a good suit when they put their mind to it”

Soon after this decision, salesmen started contacting retail buyers After four months

of selling to the trade, it was clear that the range‟s sales targets would not be met Even

a price cut did little to redeem the situation and Tailored Classics achieved only 65% of its modest sales targets

Levi‟s could only find consolation if they could learn why they went so badly wrong

Sources: Channel 4: “Commercial Breaks”; The Financial Times

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