Question 2
Levis have realized of late that they have neglected the 15-19 teen market by missing the "baby boomers" they have lost huge share in the market. In 1993 Levis had 33% share of the 15-19 age group compared to 26 % now. By missing this age group you are missing out on your future customers. While Levishas been struggling the completion has made inroads Design wear firms like "Tommy Hilfiger and Ralph Lauren have squeezed Levis on one end, while private labels sold by low price retailers" have chewed up some share of the market. This has lead to closures of 11 plants and 1000 salaried workers to be laid off.
As levis once had over 30% of the market there is the opportunity their if they mange to attract teenagers to buy their product as currently they are trying to get back into the teenage market by using Silver Tab.
Question 3
They have scrapped the special reserve product just weeks before it was due to hit the stores as it never appealed to the core teen market. This was because it appeared to the 25 years and up, instead they decided to "pump up levis silver brand, as it is considered more stylish among the young consumers".
Levis have sacked 1000 employees as it is cutting its costs and they have closed 11 plants." Top management is giving virtually every aspect of the Levis brand the once over". They have scrapped plans to open 100 new mall stores instead they will open flagship stores in major cities. It is also shaking up management it hopes that 30 % of the jobs will be filled by outsiders their way of thinking is that the management can come up with much better ideas then what they are currently thinking off. They also plan to change their retail presentation and packaging and labeling of all its goods.
They started using a new ad agency they have got rid of a company they previously had been in business for over 67 years. They are trying to give themselves anew look. They are outfitting character from hit shows like Beverly Hills 90210 and Friends they think by outfitting the characters with their clothes it will appeal to consumers, they are also sponsoring concerts such as "Electronic" as they appeal to teens.
Question 4
In the past Levis has been caught with its "pants down" this huge company was unable to keep up with their competitors in regards to getting through the teen market. This has meant that net sales have fallen from $6,861,428 billion on November 30 1997 to $4,258,674 billion on25 November, 2001. Gross profit had fallen $2,898,763 billion to $1,797,476billion during the same period.
This downturn in sales has led the company to review attract ness their product have in the market. "We are examining every element of the marketing, big M of the Levi brand", says Fanoe. This thorough examination of their market stragedy had led Levi Strauss to broaden their range of products in an attempt to boost their image. The average age of those buying the Silver Tab product is 18, compared with 25 for every other Levis product. The company now also plans to expand this line to include more tops, new trendy styles and khaki pants.
The 1997 plans which were centered on promoting Silver Tab. The company spent 5 times more on advertisement for the Silver Tab brand. They also planned to increase marketing aimed at teens. The question is whether the plans have worked. The overall net income of the company has risen from $138,211 to $151,004 on November 25 2001. This seems to suggest that their 1997 plans have increased overall profit of their company.
As for the trendier advertising campaigns, The Company feel that they are more in line with what the younger generation want 2 see. I feel that their plans have not really lived unto their expectations.
I feel that Levis could make an improvement in many different ways. Levis could make an improvement by the way they reach out to the teenage market The offcial Levis website needs to be spurned up to attract the younger generation. I found a bit boring I think that the more outrageous the style the more it is appealing to teenage market of today. At this present moment I think this site is not as appealing to the eye as teenagers would like.