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Levi Strauss

In: Business and Management

Submitted By dperdue
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Levi Strauss is an iconic American brand name. Since it’s inception in 1883 by Bavarian immigrant, Levi Strauss, the company has remained loyal to its core values – exceptional quality, style and function1. In order to maintain their competitive advantage and sustain their image as industry leaders Levi Strauss has proposed a merger with Custom Clothing Technology Corporations (CCTC). Employee Heidi Green at CCTC must consider joining Levi Strauss to exploit an opportunity in the market for personalized denim.
Levi Strauss prides themselves on their “social conscience” offering competitive salaries and benefits to employees. Additionally, they manufacture all products in the United Sates and market the “Made in the Unites States” label as a value-added incentive for consumers. The fact that Levi’s garments are manufactured locally has also supported their brand image of being “authentic”, “original” and “genuine”. The Levi’s brand made their debut in the mainstream market in the 1950’s when Hollywood celebrities proudly adopted Levi’s denim. The attributes of celebrities like Bob Dylan and Marilyn Munroe helped curated the Levi’s brand image of being original, unique and proudly American.

Levi Strauss flourished during this period and set the new industry norm. Competitors were quick to catch-up by mimicking the standard attained by Levi Strauss. In order to compete most new entrants set-up manufacturing plants overseas to exploit cheap labor thus minimizing operating costs. Levi Strauss products were now selling at a premium in comparison, but market researchers were confident there was still a market willing to pay for premium denim. According to their research only 25% of women were truly satisfied with the fit of their jeans. This is what sparked the idea for the “perfect pair”. The concept would provide customer with a tailored pair of jeans measured to their body shapes. With the advanced technology available through Custom Clothing Technology Corporation this idea was plausible. Customers could be fitted for the jeans directly in-store at the point-of-purchase. Three measurements would be taken and inputted into a system where the “perfect pair” would be calculated. Kiosks offering this service would be stocked with inventory of 400 pairs and be able to fit the customer appropriately. Customers could pay for the jeans up-front and or had the option to have them FedExed to their homes for an extra charge of five dollars. The personalization of the jeans would justify the premium price and Levi’s could retain their market share. The market was also conductive to this idea as it was forecasted to continue growing at a rate of 10% annually.

In conjunction with the research supporting the “perfect pair” concept, CCTC should join Levis Strauss in implementing their vision. Levis Strauss is an industry leader continuing to differentiate themselves from competitors and set the bar higher. To ally themselves with the worlds “first place” earner in a two billion dollar industry is an opportunity that should be accepted.…...

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