Levis Strauss Canada Holding an Ember: the Gwg Brand

Topics: Jeans, Levi Strauss & Co., Marketing Pages: 5 (1660 words) Published: August 9, 2011
Q1.Why do consumers buy jeans? What is the buying decision based on? -Jeans were invented in 1873 by Levy Strauss. Consumers’ perceptions about jeans are following: 1.Durable and extra strong-In terms of durability Jeans are considered more durable than other fabric pants .This extra strong image attracts customers for the feel of rough and tough personality.

2.Symbol of rebellion :Blue jeans were adopted as a workers’ jeans and in the 1950 they became a symbol of rebellion when stars such as Marilyn Monroe and James Dean began sporting variations of the Denim bottom

3.Manual Labor through High Fashion : In modern time a blue jeans is considered as an everyday common garment for varied occasions .It has a fashion relevancy as well as it is a casual wear of daily use.

4.It reflects own Personal independence and style. It reflects the utilitarian image. People wear jeans for work , relaxation ,to be themselves ,to attract others and to feel good.

5.Jeans are considered as ‘Cool’ ,They are famous for comfort, ease and compatibility factor.

Many a times the buying decision of a consumer is based on the modern fashion relevancy. Jeans are very famous as Casual cloths , which can be used in College or even offices, workplaces .For younger generation, youth are often spurred on by ‘image’ and peer pressure, hence these factors influence their buying behavior in purchasing jeans. A wide variety exists of jeans for diverse lifestyles, for example relaxed fit for comfort, ultra baggy, low waist for younger generation. So jeans have attracted all age group, all ethnicities. Denim is universal. How are people influenced for buying jeans, apart from fashion and trend, jeans appeal for purchase because of their longer durability and even after a long time they are usable as they considered better as they fades. Most of the very good brands are affordable for middle class income group they are not considered as luxury clothing hence they are more popular and sold, 70 percent of people in western countries uses jeans. With the rise of woman empowerment, there is an advent of new market for denim. The young women and girls have been greatly attracted by jeans.

Q2. What is happening in the overall market place and channels? Ans: The various happenings in the market place and channels can be grouped into three parts:

Consumer tastes
Consumer taste varied from diverse lifestyles to fashion preferences like Flare jeans for fashion conscious consumers and ultra baggy for younger consumers. The trend of casual wear in the work place was also increasing allowing the combination of different pant styles, including blue jeans, corduroy and khakis. The jeans market of women section experienced greater flux and change. It varied on alternative purchases such as khakis, shirts or Capri pants. Industrial observers believed that the marketplace moved from jeans to casual pants with the popularity of the khakis pant from 1998 to 2000. In 2001, the denim cycle was believed to begin again. Competitive Scenario

Market Players: The retail chains produced fierce competition. The average price paid for jeans had fallen consecutively for five years due to increased promotional pricing by the departmental stores such as the Bay and Sears and entrants like Wal-Mart and Costco pushing down the average price. The Levi’s jeans were market leaders owning 16.1% of men’s jeans market. Levi’s jeans had good brand recall. Wrangler was competitor to Levi’s. Private labels: Nevada at Sears and Rockland at Costco, Originals at Wal-Mart were some of the private label brands that owned significant portions of the men’s and women’s jeans market. The pricing was suited for mass market. These labels offered strong promotional pricing up to 40% of listed price. Premium brands: Premium brands were sold through dedicated shops with in department stores. Tommy Hilfiger and Diesel were in the process of opening their own line of stores in...
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