Levi

Levi

1. Identify the strategic and tactical aspects of Levi’s positioning exercise

The positioning exercise involves the targeting of a group that would be the potential clients for the company products all through. This is where a company decides to target a certain group of customers in a market. The Levi Company decided to target the teenagers as their target group. Most of their customers are teenagers aged fifteen to eighteen years old. On the other hand, they have made several varieties for the groups but their main target group is the teenagers (DahleÌn, Lange & Smith, 2010). In order for Levi Company to attract the different customers, they have formulated different strategies.

One of the main strategies is to move in accordance with the current taste and preferences of the teenagers. In order for Levi to maintain their customers, they have usually introduced the jeans products in with the current fashion. However, they lost focus in the recent years thus leading to loss of customer. Another strategy used by Levi Company is the use one product. They have concentrated on the jeans product as one of their main products and only product under the name Levi (Kotler, 2009). Using these strategies, Levi Company has been able to attract their targeted group, the teenagers.

2. How risky is limiting a product’s market potential for the sake of maintaining brand integrity

The limiting of product market potential is where the company concentrates on one product that a company has for the purposes of improving their brand name. In the case of Levi Company, the product that they have chosen is the jeans. In the event, they are limiting themselves from producing other related products that have a potential in the market. This means that Levi Company has limited itself in diversifying its market. Therefore, it is because of this that it has led to the different risks.

One of the risks is that the business can collapse if they fail to capture the market. In Levi Company, the business can collapse if they fail to change their strategies since they only have one product. Recently they have seen a drop in the sales volume due to the brand being hit by competition and their reluctance in changing the product in accordance to the taste and preferences. Loss in potential profits that they could gain if they had a variety of products is another risk (DahleÌn, Lange & Smith, 2010). In the case of Levi Company, if they decided to continue diversifying and looking for other products, they could make so many profits that they did not have leading to the growth of the company. If they decided to continue with one brand, they are at risk of closing the company if the product makes losses and yet they could have made profit with other products.

3. The Levi product has not really changed since the Gold Rush days. How do you account for the phenomenal transformation to become an American icon and ‘coveted symbol of the casual, unpretentious American lifestyle’?

Despite the numerous changes, the company is trying to make in order to increase its sales and revive the product; they are still poorly performing leading to the low volume in sales. The major problem is that the company was reluctant in changing to the current fashion thus their competitors took advantage of the situation. In this case, Levi Company needs to make the necessary changes in order to review their strategies in order to increase their profits (DahleÌn, Lange & Smith, 2010). Additionally they need to change their traditional cultures to new ones, which will suite the company needs.

One of the things that they need to do is conduct an extensive market research on the current fashion trends before they start creating new products and advertising them in the market. After doing so, they need to create those jeans that are unique or that have not been created by their competitors using their research so that they can be able to capture the market again. In addition to this, they need to perform sales promotions for their products informing the customers about the new jeans that they have created by showing the different customers how they are more fashionable than their competitors are. Moreover, they can also try to create new products related to their products that they see have the potential of capturing the market (Kotler, 2009). Therefore, they need to review their strategies again.

References

DahleÌn, M., Lange, F., & Smith, T. (2010). Marketing communications: a brand narrative approach. Chichester, U.K.: Wiley

Kotler, P. (2009). Marketing Strategy – Differentiating and positioning the market offering. Knol. Retrieved From: http://knol.google.com/k/marketing-strategy-differentiating-and-positioning-the-market-offering#