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Levi’s Shoots for the High-End Hipster
Travis Hogue Eric Johnson Brian Pavlukovich
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History of Levi’s Started Levi Strauss in 1873 in San Francisco
1873 patented a more durable pair of blue jeans 1936 added the red tab to the pocket to identify Popularized blue jeans They are the worlds largest brand-name apparel manufacturer Own the Dockers brand
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The Article Wall Street Journal Joining the premium denim market
Late entry in the market due to: Crushing debt Restructuring of operations Discontinuation of product lines Results: Missed out on the designer jeans craze in early 2000s Survived the recession Aggressive retail expansion Marketing of new premium line
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New Luxury Image Two new brands: Made and Crafted
Better fabrics and fit Appealing to affluent consumers Levi’s Vintage Clothing Reproductions of classic items from the brand’s history
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New Strategy Aggressive Retail Expansion Distribution International
Opened 154 new stores in 2009 Distribution Boutique stores London’s Regent Street High end retailers Saks Fifth Avenue Barneys New York International Standardization of 501 jeans Global Campaign
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It’s All Relative Retail Management Store Positioning Brand Image
Retail Life Cycle Levi’s in maturity stage Resource Advantage Theory Value for the money
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Reactions What we think of the article
Norms What do you think of Levis expansion, has anyone noticed more stores? Would you ever buy a $199 pair of Levis Jeans? Did you know that executives from Ralph Lauren helped design these jeans? Would you buy them now?
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Sources Lynn Downey, “Levi Strauss: a short biography” 2008
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