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GWG Project

GWG Project

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Published by Melissa Summers

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Published by: Melissa Summers on Jun 03, 2011
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TheGreatWesternGarmentCo.
HistoryintheMaking
MarketingManagementIMGT8571ProfessorRonaldSchillMontereyInstituteofInternationalStudies
May2,2011MelissaSummers,NicholasTaylor,XiangganGao,YiLu,LarisaMakshanova
 
2I.ExecutiveSummary
 Levi Strauss is debating whether they should take back their Great Western Garment(GWG) brand from the licensee and sell the brand themselves. In order to provide adefinite recommendation we needed to do in-depth research in order to answer severalquestions that were on the minds of those involved. What value would Levi Strauss gainfrom revitalizing and selling the GWG brand themselves as compared to continuing tolicense it. What is the target market and what would be needed in order to revitalize the brand image. Lastly, who are the competitors in this market and how does this affect theGWG brand. With these questions answered, we explore several possible options that areavailable to Levi Strauss before coming to our final recommendation. We have decided torecommend that Levi Strauss try to license the GWG brand to another company for a trail period. Upon the completion of the trial period, should the GWG brand not have gainedany market share, Levi Strauss should sell the GWG brand and all its assets.
II.ProblemDefinition
 Given the poor image of Levi Strauss’ Great Western Garment brand, their low marketshare, the large number of competitors in the market and the trend towards morefashionable jeans, should Levi Strauss take the GWG brand from the licensee and sell the product themselves? Levi Strauss is currently considering the possibility producing andmarketing GWG jeans themselves in response to the low profitability of the GWG brand.The decision to take the brand from their licensee will be determined based on twofactors. First, is that the brand must have a decent value proposition with a high chance of market growth and profitability. Second, will the GWG brand be able to compete in themarketplace with so many competitors selling jeans. From here we will go into detail,exploring the various components that will lead to a recommendation to either let thelicensee hold onto the brand or to take it back.
III.DecisionstobeMade
 
Define the value proposition
 
Define the target market
 
Analyze the competition
 
Explore the various options availabl
e
 
Offer our recommendation
 
The GWG brand is now classifiedas a “dog” brand according to theGrowth Share Matrix because ithas relatively low market sharecoupled with a low growth rate.
 
3IV.ValueProposition
 GWG offers traditional, quality, comfortable jeans that are built to last because there ishistory in their making. Consumers describe GWG jeans as “rough, rugged and durablewith a good fit,” as well as “sturdy and well-made”. Another value that is inherent inGWG’s value proposition is their role in the history of jeans. GWG jeans are widelyviewed as traditional and remembered as one of the original pioneers in the jeansindustry. One consumer is quoted to have said that, “forty to fifty years ago the world of  jeans was synonymous with GWG”. The GWG brand offers consumers quality jeanswith workability – the original, traditional jeans.V. Target Market
Levis
:In the year 1873, when Levi Strauss first invested jeans, its target market was comprisedmerely of individuals who needed to wear durable, extra strong pants when seeking gold.Later, the market extended to workers who wanted to wear something comfortable andstrong. As celebrities began wearing jeans in the 1950s, it became an everyday commongarment for various target markets, ranging from manual labor to high fashion.Unfortunately, Levi's jeans have fallen out of favor with today's youth who regard Levisas their “parents’ jeans.”
a. Consumer segments and preferencesConsumers Preferences
Fashion-consciousconsumers
 
Flare jeansYounger hip-hop consumers
 
Ultra-baggyWorkers
 
Casual wear 
GWG
:
 
Opened in 1911, the Great Western GarmentCompany was the first jeans wear companyin Canada. In 1972, GWG was a leading brand in Canada, controlling 30 percent of the market. GWG jeans are now worn mainly by men in construction, trucking, farmingand similar occupations. The brand appealsto the comfort and durability needs of itscustomers, who are generally over the age of 35. GWG has never been positioned as a brand for females.

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