Levi Strauss Case Study

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This paper deals with the marketing strategies for the Levis Strauss brands to become the

top brand in the world in various kinds of jeans and other apparels. Levis Strauss is having the

75% share in the GWG but allowed them to maintain in their own way. The GWG was also the

first to produce pre-washed jeans and had a good position in the market. GWG and Levis Strauss

Canada were concentrated on the high class people and not much concentrated on the retail

market with this one the new firms enters in to the market and the production rate of the GWG

and Levis Strauss has declined.

Company Background

Levi Strauss was founded in 1853 first and foremost selling dry goods in the wholesale clothing

market. The company was founded in San Francisco, California. Davis and Strauss purchased

the patent of the idea of using copper rivets in clothing on May 20, 1873. Levi Strauss put

concentrate on its two brands (Levi’s and Dockers) because the brand was originally licensed to

Jack Spratt. Jack Spratt is a small jeans manufacture based in Montreal.

The GWG (Great Western Garment Company) founded in Edmonton, Alberta in 1911, becoming

the first jeans brand company in Canada. GWG has always been an integral part of the Canadian

heritage. The brand mainly made up with quality and the price will be reasonably to all type of

customers. It is the first brand uses the stonewash jeans. GWG was a leading brand in 1972 in

Canada, this brand maintaining 30% of the market in jeans industry. At that time in this market

there are more brands in the market and there were no design labels and their own label brands.

GWG brand never been designed for females. The GWG jeans are mainly for the working men

Research course- week Assignment # 1 December 13th 2010


in mining, farming, construction and related to same occupations. The image of GWG is more

positive and “workman-like” than Levi's. This brand will mainly for the comfort and stay long

life. The customers are who will prefer GWG will above the age of 35.

Company Growth

Levi Strauss & Co largest manufacture of jeans in the market and profits reach $1 billion

by the year 1974. Ultimately jeans market has been captured by the Levi Strauss & Co. The

improvement of the rivets in the jeans’ by this Levi’s jeans has been differentiated with the other

brands because of its increased durability.

Over the years, Levis jeans became more popular, originally due to its stability in cloth and

different ways of design labels. Then the Levi’s jeans products are expanded, directing on the

different consumers.

By the year 1998, Levi Strauss & Co. (Canada) manufactured, marketing and sales of the GWG

brand announced it would resume responsibility under license by Jack Spratt Mfg. Montreal.

Since the patent of the rivets in jeans in 1873 the company achieved monopoly power.

Monopoly power was gained through entry barriers. The patent granted the firm monopoly rights

to sell riveted jeans (Cole, 2010)

Problem Definition

The jeans market in Canada had become highly competitive since the early 90s, There was a decline in the market share of the Levi’s as the younger crowd weren’t preferring the Levi’s jeans and it had a bad effect on the sales.

GWG was suffering in greater loss than Levi’s . Levi Strauss & Co was

threatened by the competition of the other firms. Levi Strauss is having a tough competition

Research course- week Assignment # 1 December 13th 2010



in the market and their jeans market weren’t looking good.

Some of the active competitors to the Levi Strauss are Gap Jeans, VF-corps (Wrangler and Rustler),

Calvin Klein and Tom Hilfiger. Price swill be lowered by

the competitors, customers will choose different brands which has lower price and their own

preferable brand.

Justification of Problem Definition

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