Video Case Study Analysis
ARTI MUNSHI

Levi’s Not by Jeans Alone

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.

Levi’s divided the consumers into five segments based on demographics, attitudes and beliefs. Q2 and Q1 appeared to be desirable target segments, however, Levi’s decided to focus on the Q2 consumers, the classic independent males. These consumers were well-dressed, cared about their appearance, shopped alone and mostly at specialty stores. They weren’t price sensitive and preferred wool/wool blends in conservative colors.

In order to evaluate whether the introduction strategy would be a success or a failure, Levi’s could conduct moderated and unbiased discussions among people who purchased suits often. They could also carry out surveys. Levi’s brand equity was defined around jeans not suits. However, since they were starting a suits product line, Levi’s conducted focus group meetings before launching their product. This helped them understand that their target customers were brand conscious and retail image conscious. They valued need for uniqueness and didn’t want to wear suits that were mass produced. The moderator did exhibit some bias during the discussion. However, the customers said that they would have found the product attractive if it did not have the Levi’s label on it. They also said that they would prefer Levi’s sports blazers and slacks over their three piece suits. The moderator suggested that if Levi’s wanted to sell three piece suits, they do so under a different label. Or due to it’s casual image, he suggested that they sell sporty blazers and slacks. The management team however, was biased towards their product. They believed that since