The marketing strategy used until the early 2000s was very simple. The strategy was to sell the same products worldwide and not to change them based on location or culture. This strategy appeared to be working because many people just wanted jeans and at the time this is what was offered and so people bought them. The old strategy was designed to enable the company to realize economies of scale in production and advertising which worked for a while but stopped working when other options were being given to the people. The strategy appeared to be working from many decades because people were buying the jeans but then they stopped and that is when the strategy stopped working.
People began to want different things and styles that fit their life styles and so Levi’s strategy stopped working because they needed to fulfill the needs and wants of their customers. What American people want was different from what people in South Africa want. Levi was forced to start changing their production strategy so they could continue to sell jeans. Other companies where making styles based on each type of persons needs and the location they live in and so people started to buy their products and stopped buying Levi’s. This helped cause the old strategy to stop working and made Levi come up with a new strategy.
#3 What are the benefits of the new marketing strategy? Is there a downside?
There are many benefits of the new marketing strategy. I think the biggest benefit is that it helped the company make a better profit. IT also helped the company be able to sell more jeans in places it may not of sold to because of the old strategy. The new strategy has allowed for the company to be able to grow with its new products and helped the company to be able to grow as well.
There are a few downsides that the company has...