Levi Strauss & Co.
is one of the largest apparel companies in the world with sales in over 100 countries. Despites their well-known brand name and ethical conduct, sales are declining over many years. Therefore, they need to find strategies that can increase their sales. The strategic issue in this case is how Levi Strauss will increase their sales by selling their brands to a mass channel and maintain the high-ends brand name?SWOT AnalysisStrengths * Brand awareness: Levi’s has a strong brand image by their integrated marketing strategies. * Ethical conduct and social responsibility: Levi’s believes that their first priority is ethical issues than economic efficiency. * Product breadth: Levi’s provides variety of product lines with variety of price lines in many different distribution channels to target different consumers.
Weaknesses* Sales declined: since 1997, their apparel sales are declined constantly. * Product identity: Levi’s products are stuck in the middle. Their jeans didn’t provide same brand image to all of their products.Opportunities* Possibility of going to mass market: Levi’s sales will increase if they decide to sell their brands to the mass channels such as Wal-Mart, Target, and K-Mart.
* Huge worldwide market: Levi’s sell their brands over many countries and they have possibilities to expand their markets trough out the world.Threats* Increased competition: VF Corporation, Gaps, A & F, Ralph Lauren Polo, Calvin Klein, Wal-Mart and etc. are all the competitors of Levi’s. Competition is intense and barrier of entry is low. * Trends of styles will change: Trends of styles always changes and consumers can switch to other styles than jeans.Recommendation* Levi’s should sell their brands to the mass distribution channels in order to increase their sales.
* Levi’s should not allow its mass retailers to access their higher-ends product in order to keep their brand name.Action Steps* Selling their brands to the mass channels is not going to take a long time. It will take about 1 to 2 years to adapt their stores in the U.S. mass markets. Chief Supply Chain Officer should work with Chief Strategy Officer to sell their brands to the mass channels efficiently.
It is important to keep their brand name as a high-ends product, therefore, VP of marketing need to contribute to not to sell their higher-ends products in the mass channels.
