The Levi’s Personal Pair Proposal’
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| Assignment Type | Case Study |
|---|---|
| Subject | Business |
| Academic Level | Undergraduate |
| Citation Style | Harvard |
| Length | 1 page |
| Word Count | 385 |
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1. Levi Strauss
The Levi’s Personal Pair Proposal
The Levi Strauss Company enjoys a focused differentiation position on the strategy clock. Having developed a unique product originally, which gained them brand recognition and loyalty coupled with high quality standards, the company has been able to enjoy premium prices for their products. The advent of the Dockers line reinforced this position. Should they add the “Personal Pair” product line, they will move to a more focused differentiation from other companies and offer a product once again so unique as to return them to a position of being able to command higher prices for their goods.
The Personal Pair will definitely change the differentiation of the company because it will focus, as the case study suggests, on affluent women seeking a specialized product. This is not something the company or any other jean manufacturers have tried before. The savings in distribution costs alone should more than make up for initial equipment and software investments.
Levi Strauss has a number of unique resources that will come into play should they decide to undertake this project. First and foremost among these is their brand name recognition. In spite of having lost market share to newer low-cost, mass-produced jean companies, the Levi’s name still has tremendous value which will serve them well. The Levi’s name has come to represent quality and value with customers and will work to their benefit. Their unwillingness to outsource manufacturing in order to lower production costs could also be a marketing strength that appeals to an American public struggling with economic difficulties.
I believe Levi Strauss should do more research before undertaking the project even on the small scale defined by the plan. There are a number of risks involved and not enough is known about the market place. My concern is that the broad label of “women not satisfied with the fit of the jeans” does not provide enough statistical data. What percentage of customers are women on the whole? What product lines do they buy most from? What percentage of women is actually willing to pay more for such a perfect fit, given the economic strains of the country? Is that percentage enough to generate the cost reductions and profit increases the company seeks from making an investment of this type?
The Levi’s Personal Pair Proposal
The Levi Strauss Company enjoys a focused differentiation position on the strategy clock. Having developed a unique product originally, which gained them brand recognition and loyalty coupled with high quality standards, the company has been able to enjoy premium prices for their products. The advent of the Dockers line reinforced this position. Should they add the “Personal Pair” product line, they will move to a more focused differentiation from other companies and offer a product once again so unique as to return them to a position of being able to command higher prices for their goods.
The Personal Pair will definitely change the differentiation of the company because it will focus, as the case study suggests, on affluent women seeking a specialized product. This is not something the company or any other jean manufacturers have tried before. The savings in distribution costs alone should more than make up for initial equipment and software investments.
Levi Strauss has a number of unique resources that will come into play should they decide to undertake this project. First and foremost among these is their brand name recognition. In spite of having lost market share to newer low-cost, mass-produced jean companies, the Levi’s name still has tremendous value which will serve them well. The Levi’s name has come to represent quality and value with customers and will work to their benefit. Their unwillingness to outsource manufacturing in order to lower production costs could also be a marketing strength that appeals to an American public struggling with economic difficulties.
I believe Levi Strauss should do more research before undertaking the project even on the small scale defined by the plan. There are a number of risks involved and not enough is known about the market place. My concern is that the broad label of “women not satisfied with the fit of the jeans” does not provide enough statistical data. What percentage of customers are women on the whole? What product lines do they buy most from? What percentage of women is actually willing to pay more for such a perfect fit, given the economic strains of the country? Is that percentage enough to generate the cost reductions and profit increases the company seeks from making an investment of this type?