CONSUMER BEHAVIOR’S MARKETING ANALYSIS: LEVI’S CASE STUDY

SUVI TAN ANTARA PUBLIC RELATIONS 2 – 2010 009 2010 00014 PRESIDENT UNIVERSITY

Levi’s also has carried numerous research to understand the behavior of people in every continents in order to know whether there are similarities or differences in global consumer segments. has managed to cope with many obstacles in promoting its products around the world. Levi’s view of building brands in one part of the world is the same as how Levi’s building its brands in other parts. Levi’s wants to make sure the positioning of its brand is derived. and whether Levi’s needs to adopt some local grounds in particular countries. Levi’s keeps conducting its marketing research every year because even for Levi’s. there is nothing in this world that is really certain. This case study examines Levi’s effort of global brand strategy and how it is implemented in its marketing strategy in Asia. The objectives of Levi’s researches are to determine the proper marketing strategy to be implemented in Asia. and to inject its values to Asian youth. However. Levi’s has done some research in Asia to know whether the youth psychographics in Asia is different from elsewhere in the world. Levi’s has implemented various marketing strategy in order to succeeding its effort to become a global brand. and very anxious about academic stuffs because the parents set high expectations from them. as a famous global brand. . Levi’s only apply one principle. Levis’ found that Asian youth is worried and stressed. However. Levi’s succeed in reasoning that it is confident to go against the fashion wave because Levi’s believe the trends will be back again. Levi’s also found some obstacles regarding its efforts. However. Sometimes Levi’s needs to struggle more because Levi’s never really follow the current fashion.BACKGROUND Levi Strauss and Co. as one of Levi’s values is rebellious.

and the particular competitors you face2. 2007)1. spending habits. A marketing strategy is usually an integral part of a business strategy that provides broad direction to all functions3. In satisfying the customers and fulfilling their needs. positioning. The strategy provides decisions and direction regarding variables such as the segmentation of the market. research into the characteristics. partners. targeting. and processes for creating. Marketing Research The process of gathering. and exchanging offerings that have value for customers. identification of the target market. delivering. about a product or service to be offered for sale in that market. analyzing and interpreting information about a market. marketers should be able to capture the needs of their customers and create a marketing strategy consists of three elements of strategic framework: market segmentation. . Marketing Strategy A statement (implicit or explicit) of how a brand or product line will achieve its objectives. Marketing research is important to be done for it provides relevant data to help solve marketing challenges that business will face. location and needs of your business's target market. set of institutions. and expenditures. and society at large (Approved by AMA Boards of Director. communicating. marketing mix elements.THEORETICAL FRAMEWORK Marketing The definition of marketing based on American Marketing Association is the activity. present and potential customers for the product or service. marketing strategy like market segmentation is not possible to be done without a well conduct market research. the industry as a whole. and positioning. and about the past. clients. In fact.

design. or any other feature that identifies one seller's good or service as distinct from those of other sellers. the preferred term is trade name5.Market segmentation is the process of dividing a market into subsets of consumers with common needs or characteristics. Integrated Marketing Communication Integrated Marketing Communications (IMC) is defined as customer centric. 2010)4. an image that will differentiate the offering from competing ones and faithfully communicate to the target audience that the particular product or service will fulfill their needs better than competing brands (Schiffman. These build an emotional connection with faculty. Positioning refers to the development of a distinct image for the product or service in the mind of the consumer. as well as external audiences. functions and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost7. avenues. A brand may identify one item. symbol. These theoretical frameworks will be very helpful to border the making of Levi’s case study analysis. staff and students. Market targeting is the selection of one or more of the segments identified for the company to pursue. If used for the firm as a whole. or all items of that seller. term. The legal term for brand is trademark. and influence how stakeholders perceive and interact with the company6. so the writing will not be out of topic. data driven method of communicating with the customers. IMC is the coordination and integration of all marketing communication tools. Brand values are the core values represented by a brand. a family of items. . Brand & Brand Values Brand is a name.

Levi’s still needs to know whether it needs to adopt with culture of every country that will be injected with Levi’s products. America. Levi’s has found some interesting facts about psychographic condition of Asian youth. Therefore. and Asia is different. so does Levi’s. They also have their own aspirations. youth in Europe. including Europe and Asia. On the other hand. marketers should know first about their target segments demographically and psychographically. and being allowed to be themselves more. and culture surround Asian youth. . In market research. In order to choose the best marketing strategy to be implemented in Asia. However. not being restricted to marrying within the race. like the independence of living by themselves and not their parents. Some of the aspirational values from Asian youth are actually similar with other countries around the world. Levi’s set different market segment based on its research. There are also feelings of optimism in their mind. disapproval. There is a sense of youth identity that they are the inheritors of the new world. Levi’s found that belonging and responsibilities to “the group” overwhelm personal ambitions where the expectation from parents. Yet. not having to be heterosexual. Asian youth is not always stressful and worried. That’s why Levi’s conducted market research before it began to sell its product in Asia.ANALYSIS Levi’s is a global famous brand in jeans. though it is more repressed in Asia. Levi’s primary market segment is youth with a base of 15-19-year-old males. Levi’s cannot just use the same segment in Asia because demographically and psychographically. There have been so many countries selling this brand to youth people as the main market segment of Levi’s. teachers. Asian youth feel anxious about disappointment. and even shame that might follow failure.

Individual. original jeans. Masculine. These characteristics of Levi’s that wants to be introduced to youth represent aspirational way of life for youth around the world. Levi’s personality is composed by eight characteristics of values that picture Levi’s the best: Original. cool. research has found that Levi’s in Asian youth views are American. and Long-lasting. By all of these characteristics and rational associations. it is such a challenge for Levi’s to introduce and inject its brand values and personality to Asian youth. Rebellious. Reliable. Levi’s created brand positioning statement as “The original and definitive American jeans (rational) that celebrates all the great things about being young (emotional). Levi’s tries to capture the problem of Asian youth and provides solutions through its values brought by Levi’s products. Simple. Levi’s tried to inspire Asian youth with the acknowledgement that young people have the freedom to make their own decisions to buy something that they want influenced by their rational and emotional appeal. high quality. Levi’s also has brand rational associations in addition of the brand personality: Original. Youthful. Strong. That’s why. . Sexy. Free. But. These values are given to Asian youth in order to inspire them to be more individual and not strictly follow traditional Asian culture in a whole. and American. self-confident.” Through these characteristics and rational associations also. and sets trends.Asian youth is actually “brand-fickle” which means that they are not very loyal to particular brands and most likely to often change brands for products they buy to fulfilling their needs.

Based on Global Brand Equity Study. the first thing Levi’s did was to re-establish and reconfirm the brand values because it needs to make adjustments for local circumstances and condition in Asia. that’s why. as a recent brand research . followed by Early Adopters. and adapt to Asian culture to be approved in Asian market. Millward Brown International. for example. Levi’s also put events for them on an invitation-only basis. Levi’s makes adjustment in its values and rotate them carefully in an integrated marketing communications strategy. and finally Mass Market. so that over time the audience is exposed to all of them. The value of rebellion. Levi’s stays true to its brand personality. When Levi’s wants to enter Asian market. and adjusting the words the company uses to be similar with words that the opinion leaders use. although Levi’s packed it with different and creative portrays. Late Adopters. Levi’s’ targeting hierarchy is drawn like a pyramid. Levi’s has certainly done well in Asia among the 15-29-year-olds. is not really acceptable in Japan. In catching the heart of opinion leaders as its segment. with the opinion leaders take place at the top of pyramid. That’s why Levi’s played down rebellion value in Japan.Levi’s also agrees that peers and role models will influence many people who adore them. The picture of the targeting hierarchy is as follows: No matter when and where.

fits.shows that Levi’s’ current position in brand measure ranked 1st in quality. . that having a vision and mission for the brand is vital. it needs to have different approach to reach Asian market. The market demand will always change over time. know the roots of problems to understand the needs. and the third. Levi’s observed that the global demand has shifting towards new fabrics. Second. companies must generate consumer insight. it will be popular again in the future. Levi’s also knows that the same principles apply to building brands in Asia as anywhere else around the world. sexy. Its value is to sets the trends. companies need to understand social background of every market. Levi’s takes lessons from its researches. Levi’s apparently holds the biggest appeal in Asian region. cool. Even though Levi’s has been accepted in many countries. Currently. Levi’s strategy has never been to follow the trends in the words. youthful. and will have more appeal than ever. But. That’s why. Levi’s decided to create a portfolio of brands and sub-brands. Before executing marketing strategy to a particular market. research is very important in marketing to understand how and why customers tastes are changing over time and what that means for the brands. Levi’s’ positioning will always has classic status. creative execution must reflect the brand personality and desired consumer associations. If an item is popular. and finishes. Research makes the marketing effort easier by providing relevant data to be analyzed and to decide the marketing strategy to be applied. Levi’s success never guarantees the safety of its products in the future. Levi’s believe that the fashion market is cycling. The traditional denim jeans products that sold by Levi’s is slowly losing its appeal in consumer’s sight. Eventually. However. First. and sets the trends.

targeting. Levi’s needs different approach to reach Asian market. Levi’s needs to know first the demographic and psychographic circumstances in Asia. Levi’s succeeded in entering Asian market. After understanding the condition of its market.CONCLUSION Whatever the companies are. not always follow the traditional rules by Asian. even having the biggest brand appeal in Asia than in other continents. . Levi’s as one of many famous global brand in the world also conducted so many research before implementing its marketing strategies. and how is the behavior of Asian. companies are able to decide the most proper marketing strategy to be implemented. After having well-conducted research. Marketing research gives many beneficial for the companies to understand the condition if companies’ target markets before companies decide to enter particular market. Levi’s is able to create marketing strategy starting from the segmentation. marketing research is really important to be conducted. and positioning. Slowly but sure. It is necessary because even though the strategy is not really different from other countries. When Levi’s wants to enter Asian market. It is proven by the effort of Levi’s to inspire Asian youth to be more independent and self-confident. Not all Asians can accept brand values and personality brought by Levi’s.

& Kanuk.entrepreneur.com/encyclopedia/term/82436.marketingpower.aspx 2. .G.aspx? dLetter=B 6.html 3.marketingpower.com/AboutAMA/Pages/DefinitionofMarke ting. Baack. Clow.edu/brand/values 7. Consumer Behavior.com/_layouts/Dictionary..com/_layouts/Dictionary. http://www. http://www. Kenneth E. and Marketing Communications 3rd edition. Donald (2007).L. Promotion.aspx? dLetter=M 4.REFERENCES 1. 9–10. Tenth Edition. pp. L.marketingpower. http://www. (2010). Schiffman. Pearson Education. New York: Pearson Education International. Integrated Advertising.asu. http://www. http://commguide. L. 5.

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