Stp Analysis of Levis

Targeting is a method of examining the market segments and follow all or any of the following 3 types: undifferentiated, multisegment (differentiated) and concentration (niche) (Palmer, 2009). Selfridges’ products diversity means its target include both men and women aged >25 years belonging to the high-income group whose interest is fashion and luxury. Thus, Selfridges’ targeting can be said to be concentration (niche); however, due to its prime locations, Selfridges also attracts general public including families, singles and tourist. Therefore, in that aspect, its targeting strategy is differentiated.

With other companies starting to encroach upon the Jeans market share, Levi’s decided to introduce a new product. With the goal to gain profits, Levi’s pursued diversification with the new product. This product was formal clothing for men.

Thus, companies seek to strengthen customer loyalty. Brand loyalty is considered to tilt the consumer to purchase the package / product specific brand (Jacoby and Chestnut, 1978). Later, Oliver (1997) defined loyalty as "a deeply held commitment to REBUY or repatronize preferred product / service consistently in the future, thereby causing repetitive same-brand or same brand set purchasing, despite situational influences and marketing activities, which would result in causing switching behavior "(p. 34). This conceptual definition covers two different aspects of loyalty: the behavioral. This is consistent with an integrated conceptual framework proposed by Dick and Basu (1994), that customer loyalty is regarded as a "power relationship between the relative position of the individual and repeat

Over the decades there were tremendous amount of challenges for every business. Customers have more knowledge, they have more options, and they have higher expectations. Customers are more informed with the humungous development in technology. Having more options in front of them, expectations has surpassed in retail industry. Loyalty is a customer having faith that your organization’s product or services offered is the best for them. It is the process of tapping the buying pattern of customers in a store based on their preferences. Customer loyalty is significant because it is economical to retain the old customers rather than acquiring new customers. So, organizations employ loyalty programs which reward customers for their repeat business.

The Gold Rush created many opportunities for up and coming entrepreneurs such as Levi Strauss, Henry Wells and William Fargo, as well as John Studebaker. Levi Strauss invented the blue jeans for the miners and the working class, which became loved by all. Levi Strauss went to San Francisco in 1853 to take advantage of the giant sales opportunity in California (PBS.com). Once in San Francisco, Levi opened up a store and began to sell merchandise. John Davis, a Nevada tailor, approached Levi Strauss and wanted to create a partnership for his heavy duty cotton work pants (PBS.com). The jeans became a huge success with miners, cowboys, and the working class. “By the end of 1873, thousands of San Franciscans were wearing Strauss and Davis's pants”

To be able to gain loyalty among the customers and stay ahead of its competitors should tackle the changes in demand along with the shift in the consumers demand and needs.

Nordstrom’s and Topshop’s marketing strategy both target a specific segment of the market. While Nordstrom’s focuses on higher end/quality goods and competitive pricing, Topshop’s offers consumers the runway and street fashion at affordable prices. The companies are examples of niche marketing, which “allows the organization to create more narrowly focused marketing plans for its brands than segment marketing approaches.”(Finch, 2012)

Diversify their portfolio of service and product offerings to meet the strategic needs of their target market.

The first Levi’s jeans, that were manufactured entirely for women were introduced in the West of the United states of America in 1934 according to the official Levi Strauss & Co website “http://www.levi.co.uk”. The company changed its brand to “Lady Levis”, which was venerated by the western American women working on ranches and promptly captivated women in the eastern part of the USA. Furthermore, women were wearing jeans with the purpose of showing the gender equality.

This process helps a firm or organisation in focusing its marketing effort towards a specific segment or a group of segments. Depending on the product, organisational goals, the size of the firm and the marketing resources available a firm may target only one ‘niche’ segment or alternatively focus on several related segments. Another method can be to start with one segment and add more when business grows successfully. Large companies often target all market segments and try to serve them by offering a large variety of products to suit all their needs, wants and demands.

True Religion Brand Jeans is a relatively new company, establishing itself in late 2002, and taking denim in a new direction. Just over three years old, the company has capitalized on the latest Hollywood trends and narrowed their target market to the likes of celebrities and high fashion ‘gurus' who don't seem to mind forking out $400 for a pair of jeans. Currently, True Religion's strategy is through differentiation of their product through prestige, brand image and innovation. They have established a quality product with fashionable trendsetting lines and paying impeccable attention to detail, appealing directly to their target market and differentiating their product from their competitors.

One company that faces these cultural issues daily is Levi Strauss and Company. Levi Strauss and Company is a large American company founder in 1853 and is well known for its denim line. Currently Levi Strauss and Co. has operations in over 110 countries with over half of its corporate revenues coming from outside the United States. In American history we have all heard complaints of companies in the garment industry hiring underage employees outside the United States and poor working conditions. Levi Strauss and Company has not been left out of these accusations.

I don’t think they were correct to use that brand name because the Levi Straus is bringing down the Levis name. Personally I would not buy Levis jeans anymore if I knew that there were such low price Levis jeans around. It degrades the brand to the eyes of the higher end customers.

New product development: Levi Strauss and co.’s women’s wear division markets several line of casual sport wear including jeans, slack and knit and woven tops, blazers and skirts. New products are continuously introduced by Levis Strauss. The recent introduction of women 501 jeans has been very successful.

The behavior in which a consumer keeps buying a product time and again instead of buying products from other competitive companies is called Brand Loyalty. Brand loyalty can often be termed as Customer Loyalty, Brand Commitment, Product Loyalty etc. Brand Loyalty is seen among consumers when they realize that the product is better than the other products that are available in the market. This affinity of a consumer towards a particular product is considered to be brand loyalty. Although, this consumer behavior is not limited to a simple repetition of a purchase, there is also a psychological reasoning behind the consumers’ affinity towards behavior.