Levi Strauss - Rejupenation

Levi Strauss Canada Holding An Ember : The GWG® Brand

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Company History : Levi Strauss  Levi

Strauss & Co was founded

1853

wor world's orld ld's 's  Levi

1873

 Levi Levi Str Straus Stra St raus auss uss s &  & Co. Co. is is one off  the the

Strauss & Co. patent riveted jeans and begin selling them.

lead le adin ing g

bran br ande ded d

appa ap apparel pare rell

compan com companies panies ies wit with h sal sales sale sa les es s in mo more re than than 100 countries worldwide worldwide..  Over th the e yea ears rs,, Lev evi¶ i¶s s je jea ans ha hav ve

 Company

sales reach $1 billion

1974

become more popular, initially due to its durability. Jean products expanded,

 Downturn

1998 2002

in sales as high-end and also private-label brand attract market

Levi Le vi's 's  jeans jeans je ans  The The pri primar mary y lin lines line li nes es s are are Levi's  Employed

2002

targeting different consumers consumers..

more than 23,000 people  Operated in more than 150 countries

and Dockers casual casual pants pants,, and now added Levi¶s Strauss Signature®

Company History : GWG® started producing shirts, overall, heavy outdoor coat, and first denim

GWG

1911 1927

Expanded

1930 1961

in womens wear workforce It has dynamic growth and Levi¶s Strauss purchase GWG 75% ownership

 Levi¶s

19721980

GWG

bought remainder of the company sold in most clothing outlets

 Company

1992 2001

GWG

by GWG introduced licensed to Jack Spratt

GWG® offers limited line of 

products that focuses to the segment of men by offering 4 fits, 4 finishes: stonewash, stone bleach, rinse and black, and 16 sizes from 28 waist to 42 waist with two different lengths. Regarding the licensee agreement of the company to Levi Strauss Canada, in 1998, 8% of  its net wholesale goes to Levi.

Case Background  Levi Strauss &  & Co. Co. purchased 75 75% % of  Edmonton's Great Western Garment

1961.. Levi Strauss Canada decided to license Company (GWG) in 1961

GWG

to Jack

Spratt Manufacturing Inc. nc. in 1998. 1998.  Jack Spratt was not giving a good performance and Levi¶s company thinking of 

taking the license and revive

GWG

brand.. brand

 Both Levi's and GWG brands have been affected by the popularity of  of designer

label jeans, jeans, private label jeans, jeans, specialty specialty retailers and new trendier brands brands..  With competitors like Wrangler, Walal-Mart, Zellers and premium brands that

popular among younger age groups like The Diesel,

and

Guess. uess.

Gap,

Calvin Klein, Tommy Tommy Hilfiger,

 Why do consumers buy jeans?  What is the buying decision based on? How do you segment these consumers?

#1

Buying R eason

     

Utilitarian

reason

Fashion Showing owner character Reflecting own personal independence and style Comfort, ease and compatibility Practical and strength

Buying

Decision:

 Brand name  Design  Price  Fabric quality/fit  Distribution Channel  Advertising

 Why do consumers buy jeans?  What is the buying decision based on? How do you segment these consumers?

Geography

Demography

Psychographic

& Behavior 

#1

National International

Sex Age Economic state

: female and male : teens, adult : low, middle and high

Fashion Conscious Quality Conscious Fit & comfort Reflecting personal independence & style Follower / Peer pressure

TYPE OF JEANS Flare jeans for Fashion-Conscious consumers

Relaxed Fits for older consumer

Ultra

Baggy for Younger consumer

#2 Brand

What are the leading attributes of  the competitors? How does this match or not match the consumer buying decision?

Price

Dist. Channel

Attributes

Segment

GWG and Levis Jeans

Orange Tab

$42.99 $69.99

Bay, Sears, Zellers, Original Levis Store

Classic, Quality, Originality, Fit, and Independent, Five main fits with three finishes, frequently differentiate the finishes

15 -24 male & female market

Red Tab

$49.99

Bay, Sears, Zellers, Original Levis Store

Classic, Quality, Originality, Fit, and Independent, 12 fits, constantly updated new fits, frequently differentiate the finishes

15 -24 male & female market

GWG

$18-$22

Small mass merchants, selected Marks

Quality, Comfort, and Price, four fits, four finishes

Male

Wrangler

$29.99

Wal-Mart, Zellers

Western and Country, five main fits with three finishes

Male customer

Rustler

$19.99

Wal-Mart, Zellers, Saan, Giant Tiger

Similar level of ruggedness with Wrangler, Western Style, five main fits with three finishes

Male customer

VF Corp

Brand

Price

Dist. Channel

Attributes

Segment

$34.99

Marks Work Warehouse

Medium to high quality fabrics, five main fits with three main finishes, offered other products in the store

25-50 years old males, suburban strip

Bluenotes

$39.99

Thriftys

Medium to high quality fabrics, five main fits with three main finishes, seasonal specialty offer based on innovations in higher segment

15  24 years old male and female

GAP

$49.99

The Gap store

Medium to high quality fabrics, five main fits with three main finishes, seasonal specialty offer based on innovations in higher segment

18  35 years old

Nevada

$24.99

Sears

Simulating branded style, 30-40% price cut

Male & Female

Rockland

$16.99

Costco

Aggressive pricing

Male & Female

Originals

$19.99

Wal-Mart

Placing side by side with branded promotion

Male & Female

Cherokee and Truly

$19.99

Zellers

Simulating branded style, Placing side by side with branded promotion, weekly sales flyer

Male & Female

Reitmans

$25-$30

Simulating branded style

Female

Cotton Ginnys

$25-$30

Simulating branded style

Female

Specialty Retailers Denver

Hayes

Private Label

Brand

Price

Dist. Channel

Attributes

Segment

Silver

$69.99

Dedicated

store, Apparel store

Unique lifestyle image, catwalk fashion collection

Male & Female, Premium consumer

Guess

$79.99

Dedicated

store, Apparel store

Unique lifestyle image, catwalk fashion collection

Male & Female, Premium consumer

Tommy Hilfiger

$89.99

Own line store, Apparel store

Unique lifestyle image, catwalk fashion collection

Male & Female, Premium consumer

Polo Ralph Lauren

$89.99

Dedicated

store, Apparel store

Unique lifestyle image, catwalk fashion collection

Male & Female, Premium consumer

Calvin Klein

$79.99

Dedicated

store, Apparel store

Unique lifestyle image, catwalk fashion collection

Male & Female, Premium consumer

Diesel

+$100

Own line store, Apparel store

Unique lifestyle image, catwalk fashion collection

Male & Female, Premium consumer

Premium Brands