Levi's Brand: Relationships, Nostalgia, Culture, and Differentiation, Exams of Media Management

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Chionh Wen Kuan Euge

PT-UOE BScMC

BE440 – Brand Management Assignme

Company: Levi Strauss & Co. (L

Table of Contents

Introduction

Levi’s Brand Positioning Strategies

1. Relationships (Brand as Friend)
2. Nostalgia / Heritage (Brand as Friend)
3. Culture (Brand as Myth/Story)
4. Social Differentiation (Brand as Distinction)

Conclusion

References

BE440 Brand Management – Assignment 2 (2,500 Word)

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Fig 1. Worldwide Net sales of Levi Strauss & Co. from 2005 to 2016 (in billion US Dollars) (Statista, 2008)

Their stable stream of net sales shows that the brand has been able to provide a sustainable image and memory for their customers, especially with their iconic signatures on their products, the brand still stands out amidst the already saturated denim market.

2. Levi’s Brand Positioning Strategies Levi’s has adopted a few different strategies in the positioning of the brand. Some of the strategies in place are more obvious than others, but they amalgamate to position the brand and communicate their vision to their customers clearly. forming lasting impressions and appealing to many people.

2.1. Relationships (Brand as Friends) Brand as friends or relationship branding is a paradigm shift. Globalization of businesses and the growing importance of customer retention, market economies and customer relationship economics, among other trends, reinforce the change that mainstream marketing is facing (Grönroos, 1994). The focus is shifting from attracting customers to having customers and taking care of them. In relationship marketing, it is key to understand that the core of it lies in the relations, the maintenance of relations between the company and the stake holders in the micro environment (i.e. suppliers, public, customers, etc.) (Ravald & Grönroos, 1996).

To maintain a long-term relationship, the benefit concept has to be stretched, more factors like credibility, continuity, etc have to be considered in order to increase the trust for the company which will support and encourage customer loyalty (Ravald & Grönroos, 1996). A trust develops after a few transactions and the customer feels safe as the consumer is assured that the company will be able to fulfil their needs and wants. It is important that the company is aware of the significance of continuity in a customer relationship. When value is a means of strengthening relationships, value adding features to the customers shouldn’t be the only topic up for discussion. You can either increase the customer benefits or decrease the customer’s effort (Ravald & Grönroos, 1996).

Levi’s has always been able to extend relationships to customers, they have always been around for all their customers even when the company wasn’t doing so well. The company even supported the military during World War 2. The unwavering façade of Levi’s even throughout devastating events has proved that the company is able to provide continuity of services with customers and credibility of the company. The company’s vision says that they are “the embodiment of the energy and events of our times. Inspiring people with a pioneering spirit”. The vision provides a sense of security to customers, by working and moving together with the times, customers can be sure that their ever-changing needs and wants will be fulfilled by Levi’s.

Levi’s has always been able to provide the security that customers need, thus being able to maintain a long relationship with its customers. Levi’s will also have to prove that they listen to their customers fully and attempt to reduce the sacrifice and effort that is required by the customers, especially in the current globalization state.

know us and respect us, but that doesn’t mean they’re buying our products”, therefore they have found a sweet spot that is crucial to the livelihood of the company. They have been pushing for the balance between heritage cool and innovation through sustainability, the development of cutting edge products or through an advertisement that has attracted more than 21 million views on youtube in 2017. They have been able to find the balance between heritage products and new products as well, they have maintained the 501s and have innovated within the 501 to stretch to become a range of 501s to choose from.

In order to stay on top, Levi’s will have to strike a good balance in the positioning of the company. Focusing too much on heritage or trying too hard to be current will cause instability to the position of the company, Sey mentions that “it’s got to be a perfect marriage of brand and product that respects the heritage but strives for new things”.

2.3. Culture (Brand as myth/story) A strong story surrounding a brand is important, it helps a lot in reinforcing the position of the brand. The ability to tell an enduring story to the consumers will help the consumers to connect to the brand, to feel like they know the brand thus, building strong emotional bonds. The authenticity of the story behind the brand is an area for discussion. Facts will always be facts, however stories told around the facts are usually very different. Enduring stories include the facts that are conveyed in a new perspective, making the story memorable yet credible at the same time.

The story is the emotion that makes the company come to life in the eyes of your audience. Stories coupled with other elements like images and associations can help to leverage deeper meanings or shared values with people. Sociological research demonstrates that people are less likely to switch brands as the elements are shared collectively by groups of people, forming generally accepted conventions about the brand.

Levi’s has done a great job in conveying their story of the brand throughout the years, their story of humble beginnings help to form a lasting impression on their consumers. The company inspires and motivates the consumers to constantly innovate and progress. Levi’s also claims and emphasizes originality in their story, the myths are written around the brand’s past, reinforcing their position as the original jeans (Williams, 2000).

Levi’s has become an aspirational and inspirational brand where their undoubted strength has given them the ability to connect with the younger generations who account for over 30% of their sales as well as to be a stimulus for the rest of the demograph. The brand’s story also lives through the mythology of the cool and exciting rock and roll culture and James Dean.

Levi’s should continue emphasizing on their originality as it helps to provide courage to new consumers to support the brand. As it is a trusted brand for generations and will still be for many years to come.

2.4. Social Differentiation Social differentiation by definition is the distinction made between social groups and persons on the basis of biological, physiological, and sociocultural factors, as sex, age, or ethnicity, resulting in the assignment of roles and status within a society. In marketing, this is to position the company in a way that sets you apart from the other competitors by capturing the spirit of the moment ahead of the other brands. There are a few different types of social differentiation strategies, but we will be talking about the Cool and Cultural Capital strategy.

The Cool and Cultural Capital strategy is closely linked to another strategy called Fashionization. Briefly, fashionization is the replacement of function with a strong emphasis on fashion and style. The concept of cool is what the Cool and Cultural Capital strategy is about. The term cool has increasingly become the favourite language for popular culture, particularly the youth culture (Pountain & Robins, 2000). The main target is the leading edge of fashion that is usually appealing to the younger, youth market. Some of the words that describe this market would be “authentic”, “hip” and “real”. Appearing as a “cool” brand will definitely boost sales for the brand, in a Superbrands survey conducted in 2002, 40% said that they were prepared to pay more for a cool brand.

As mentioned in the section above, the youths felt that Levi’s was a brand their parents’ generation wore, apart from reinforcing the branding by just including “The Original Jeans” tagline they ensured that older prominent figures like Jeremy Clarkson or Tony Blair would not kill any kudos that the brand might have with the younger generation. They had announced in 1999 that “we want to show this is the brand that really understands contemporary culture” (Guardian, 1999). They followed their claim by opening a flagship store in London which included DJs, graffiti art, chill-out zones and in-store “customising”,

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References:

Beer, J. (2017). Old Pants, New Tricks: How Levi’s Meets The Challenges Of A Modern Heritage Brand. [online] Fast Company. Available at: https:// www.fastcompany.com/40473001/old-pants-new-tricks-how-levis-meets-the-challenges- of-a-modern-heritage-brand [Accessed 25 Jan. 2018].

Dahlén, M., Lange, F. and Smith, T. (2010). Marketing communications: A Brand Narrative Approach. Chichester: Wiley, pp.194-232.

Deleon, J. (2015). How Levi’s Built the Most Authentic Clothing Brand in the World. [online] Complex. Available at: http://www.complex.com/style/how-levis-built-the-most- authentic-brand-in-the-world [Accessed 25 Jan. 2018].

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Gronroos, C. (1994). From Marketing Mix to Relationship Marketing: Towards a Paradigm Shift in Marketing. Asia-Australia Marketing Journal , 2(1), pp.9-29.

Hirsch, A. (1992). Nostalgia: a Neuropsychiatric Understanding. NA - Advances in Consumer Research , 19, pp.390-395.

Holak, S. and Havlena, W. (1998). Feelings, Fantasies, and Memories. Journal of Business Research , 42(3), pp.217-226.

Lasaleta, J., Sedikides, C. and Vohs, K. (2014). Nostalgia Weakens the Desire for Money. Journal of Consumer Research , 41(3), pp.713-729.

Nancarrow, C., Nancarrow, P. and Page, J. (2002). An analysis of the concept of cool and its marketing implications. Journal of Consumer Behaviour , 1(4), pp.311-322.

Pountain, D. and Robins, D. (2000). Cool rules. London: Reaktion Books.

Ravald, A. and Grönroos, C. (1996). The value concept and relationship marketing. European Journal of Marketing , 30(2), pp.19-30.

Smith, A. (2010). Levi changes name to Denizen - but only in Asia - Aug. 18, 2010. [online] Money.cnn.com. Available at: http://money.cnn.com/2010/08/18/news/international/ levi_denizen_asia/index.htm [Accessed 25 Jan. 2018].

Statista. (2017). Global net sales of Levi Strauss, 2016 | Statistics. [online] Available at: https://www.statista.com/statistics/268540/global-net-sales-of-levi-strauss/ [Accessed 25 Jan. 2018].

Strauss, L. (n.d.). Our Story - Levi Strauss. [online] Levi Strauss. Available at: http:// www.levistrauss.com/our-story/#heritage-timeline [Accessed 25 Jan. 2018].

Tam, I. (2017). Retro-lution: In with the old, out with the new?. [online] Marketing Interactive. Available at: http://www.marketing-interactive.com/retro-lution-in-with-the- old-out-with-the-new/ [Accessed 25 Jan. 2018].

Williams, G. (2001). Branded?. London: V & A.