Levi's Type 1 Jeans Campaign example essay topic
Thirdly, Jeans market is becoming more competitive nowadays as the emergence of designer brands and more fashion jeans brands. This paper will be divided into four chapters. The first chapter is the introduction of whole paper which will discuss about the reason of choosing Levi's and the structure of this paper. The second chapter is the background information of Levi's and its external and internal audit, the simple history background and development of Levi's and its external and internal audit with a focus on the marcom will be discussed. The third chapter will be included the critique of Levi's Type 1 Campaign and recommendations. The last chapter is conclusion.
Background of Levi Strauss & Co. Levi Strauss & Co. (LS&CO.) is the first company produces jeans in the world. Founded in 1853 by Bavarian immigrant Levi Strauss is one of the world's largest brand-name apparel marketers with sales in more than 100 countries. Today, the Levi's trademark is one of the most recognized in the world and this can reflect Levi's strong and effective campaign through out the world for a long time.
However, not every marcom campaign is effective. Levi Strauss & Co. employs a staff of approximately 12,400 people worldwide, including approximately 1,500 people at its San Francisco, California headquarters. Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions: \n Levi Strauss, the Americas (LSA), based in the San Francisco headquarters \n Levi Strauss Europe, Middle East and Africa (L SEMA), based in Brussels \n Asia Pacific Division (APD), based in Singapore (web) External Audit "X Industry trends The growth of the jeans is slow down during 1990's. According to Business Week's report on 2000 the jeans market has risen by some 4%/yr since the mid-1990's. Although the jeans market is growing, the market share of the major player Levi's losing its market share from 1990's throughout 2000's world wide. According to the same report by Business Week Levi's jeans market share may have decreased from 31% to approximately 17% in the last decade, estimates by analysts.
The reason that Levi's loss its market share might be because Levi's rely on single brand products Levi's 501 for more than 130 years and also the similar advertising and marcom campaigns make audiences feel bored with them. In addition the jeans market is becoming more and more competitive. Since the strong competition come from the jeans competitors such as Lee, Wrangler, Diesel and Pepe. Competition from the fashion brands such as Gap, competition from the designer brands such as Calvin Klein, Tommy Hilfiger, Polo, Paul Smith and Armani. Therefore, the jeans market's competition is becoming tough and the effective marketing campaign can be very important tool to gain the market share. "X Target consumer Traditionally, male is more important than female in jeans market.
Since males buy more jeans than female but the situation is changing the growth of the female's jeans market is faster than male's (see table 1). From the table we expected the sales of the women's jeans market will become more important in the future. The Jeans Market 2000-2001 Percentage 2001 2000 of change Men's jeans sales $6.18 billion $6.00 billion +3.0 Women's jeans sales $4.80 billion $4.51 billion +6.4 Source: Mintel International Group Ltd. "X Competitors and their communication strategies and effectiveness The main competitors in the market will be Lee and Wrangle from the United States both owned by VF Corp and Diesel from Italy. They all active and success involved in marcom campaigns.
Lee Lee has used online films to reposition a brand. Lee has proven to be one of the more skilled Web-film marketers. In fall of 2000, Lee created a Lee Dungarees campaign. The company e-mailed 250,000 consumers, age from 17 to 22, with short movies featuring villainous characters. It then built online games and websites based on those villains, and eventually unrolled a TV campaign that showed the link between Lee Dungarees and the villains. That campaign saw one fourth of those who opened the e-mails (web).
Wrangle Wrangler runs 5 Western commercials along with six new spots for its Hero brand. Print ads will run in magazines such as Sports Illustrated and People. Wrangler will also run ads in women's magazines because 70% of the purchases of male products are done by women. Wrangler spent GBP 15 million on European campaigning. There are two rodeo riders who are the stars of a television advertising campaign for Wrangler's. Substantial sales are at stake.
In the UK market alone, more than 39 m pairs of jeans at a value of more than GBP 900 million were sold in the 12 months to the middle of last year (Financial Times London, 1997). Diesel Diesel was one of the first companies to have a major presence on the Internet (web) - opening its site in 1995. Today the site contains information about all Diesel clothing collections, as well as its licensed products, plus a complete archive of all Diesel advertising. Members of the Diesel Club receive new information, exclusive previews and regular updates via email. 1999 - BIM A (British Interactive Media Awards), Winner - Virtual Store; Design Council's Design Effectiveness Awards, Winner - Virtual Store and email marketing database; Design Week Magazine Awards, Multimedia Graphics, Finalist - Virtual Store; 2000 - Design Week Magazine Awards, Site award 55 DSL (web). Internal Audit "X Product-markets The main product of Levi's is jeans and the market will be mainly youth market which is youngster age between 15 and 25.
Although, Levi's also consumed by middle age people since they used to wear Levi's jeans when they are young, Levi's marcom campaign mainly target young people. "X Locations Since, the main consumer of Levi's is young people age from 15 to 25. Majority of youngsters in between this age group may in schools or universities. However, small proportion of this age group may be working. "X Success of previous communications Levi's had been involved in marcom for a very long period of time.
Most of the marketing campaigns had been successful in terms of sales and brand image. However, consistence of using same method of TV advertising campaign with out creative ideas, new elements and new Medias. Levi's suffer from a slum of sale during 1990's. Until, late 1990's the company starts to apply creative ideas and different channels and methods of carry out marcom. For example, Award-winning ad campaign makes Engineered Jeans the brand leader (web).
"X Role / contribution of marcoms (strategically and tactically) The role of marcom for Levi's is very vital since the jeans market is becoming more and more competitive and the young consumers! | taste also change quickly. The contribution of the marcom to Levi's can be say! SS invaluable!" since the marcom campaign make Levi's to become a most recognized jeans brand globally. That also contributes to the Levi's brand equity as well as brand image. Background of Levi's Type 1 Jeans Campaign This year 2003 is the 150 anniversary of Levi's. In order to celebrate this imperative year of Levi's had launched brand new jeans which is Levi's Type 1 Jeans.
The marcom campaign to support the launch of the Type 1 started on February, 2003 and this campaign is running globally with integrated marcom tools. This campaign is the most expensive marcom campaign that Levi's had been launch in its history.! SS The multi-million pound campaign, for its Type 1, jeans is the most expensive yet - although the company is refusing to disclose the exact cost!" (British News, 2003). However, Levi's Type 1 Jeans Campaign seems not an effective campaign which will be discussed and recommendations will be given in the next part. Critique of Levi's Type 1 Jeans Campaign and Recommendations \n Target Audience ".