This case concerns Levi-Strauss' introduction of the Dockers line of pants. The most interesting issues relate to the brand image and brand equity of Levi's and how they affect and are affected by the introduction of new products. Consider the following questions in your discussion of this case:
1) Try to do an informal brand value chain analysis. Can you trace how the brand value was created and transferred.
| <69 (501s) | 70-89 (Diversification) | 90-00 (Dockers) |
Marketing program investment | Quality product.Mouth-to-mouth communication.Low product innovation.Government, Celebrities, Students and Music festival target. | Product diversification: jeans, cords, slacks, ...view middle of the document...
65 billion leveraged buyout | Private |
2) Analyze Dockers’ communication strategy at the time of the launch. How did it fit in with past Levi’s advertising efforts? How did it contribute to brand equity?
With the refreshment of LS&Co advertising strategy with Dockers, we identify several fact that contribute understanding Dockers positioning and brand mantra.
First, LS&Co educated the target market for Dockers, Second create brand awareness and brand image that leverage positive Levi’s brand association and different product.
The target audience was stablished as white collar men from 25-49 years who lived in major metropolitan areas in USA.
The product was innovated in quality and comfort, reminding of Levis jean but with a different use and purpose (contemporary but stylish and classic).
Increase advertising budget to 4.6 million television campaign, with simplicity showing real cases for Dockers’ real audience. Expansion in US national market, expanding distribution channels and opening new retailers (Dockers stores).
3) How would you characterize the Dockers brand image? What makes up its brand equity? Evaluate the move to expand the line into the bedding, bath, and luggage markets.
Dockers will be defined as comfortable, work code, casual non-jeans pants. It fits a baby boomer target market that has evolved with time (rebel to casual). Thanks to high quality and to customer marketing oriented, LS&Co position Dockers in a growing market (reduce in jeans increase in slacks and khakis)
In my opinion, diversification to other markets that were not clothing related was a big mistake. First, you lose concentration and brand image to customers. Second, it wasn’t profitable. Third, and most important, you lose the brand core. These...