CONSUMER BEHAVIORS MARKETING ANALYSIS: LEVIS CASE STUDY

SUVI TAN ANTARA PUBLIC RELATIONS 2 2010 009 2010 00014 PRESIDENT UNIVERSITY

BACKGROUND
Levi Strauss and Co, as a famous global brand, has managed to cope with many obstacles in promoting its products around the world. Levis has implemented various marketing strategy in order to succeeding its effort to become a global brand. Levis also has carried numerous research to understand the behavior of people in every continents in order to know whether there are similarities or differences in global consumer segments, and whether Levis needs to adopt some local grounds in particular countries. This case study examines Levis effort of global brand strategy and how it is implemented in its marketing strategy in Asia. Levis keeps conducting its marketing research every year because even for Levis; there is nothing in this world that is really certain. However, Levis view of building brands in one part of the world is the same as how Levis building its brands in other parts. Levis only apply one principle. Levis has done some research in Asia to know whether the youth psychographics in Asia is different from elsewhere in the world. Levis found that Asian youth is worried and stressed, and very anxious about academic stuffs because the parents set high expectations from them. The objectives of Levis researches are to determine the proper marketing strategy to be implemented in Asia, and to inject its values to Asian youth. Levis wants to make sure the positioning of its brand is derived. However, Levis also found some obstacles regarding its efforts. Sometimes Levis needs to struggle more because Levis never really follow the current fashion. However, as one of Levis values is rebellious, Levis succeed in reasoning that it is confident to go against the fashion wave because Levis believe the trends will be back again.

THEORETICAL FRAMEWORK

Marketing The definition of marketing based on American Marketing Association is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large (Approved by AMA Boards of Director, 2007)1. Marketing Research The process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business's target market, the industry as a whole, and the particular competitors you face2. Marketing research is important to be done for it provides relevant data to help solve marketing challenges that business will face. In fact, marketing strategy like market segmentation is not possible to be done without a well conduct market research. Marketing Strategy A statement (implicit or explicit) of how a brand or product line will achieve its objectives. The strategy provides decisions and direction regarding variables such as the segmentation of the market, identification of the target market, positioning, marketing mix elements, and expenditures. A marketing strategy is usually an integral part of a business strategy that provides broad direction to all functions3. In satisfying the customers and fulfilling their needs, marketers should be able to capture the needs of their customers and create a marketing strategy consists of three elements of strategic framework: market segmentation, targeting, and positioning.

Market segmentation is the process of dividing a market into subsets of consumers with common needs or characteristics. Market targeting is the selection of one or more of the segments identified for the company to pursue. Positioning refers to the development of a distinct image for the product or service in the mind of the consumer, an image that will differentiate the offering from competing ones and faithfully communicate to the target audience that the particular product or service will fulfill their needs better than competing brands (Schiffman, 2010)4. Brand & Brand Values Brand is a name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. The legal term for brand is trademark. A brand may identify one item, a family of items, or all items of that seller. If used for the firm as a whole, the preferred term is trade name5. Brand values are the core values represented by a brand. These build an emotional connection with faculty, staff and students, as well as external audiences, and influence how stakeholders perceive and interact with the company6. Integrated Marketing Communication Integrated Marketing Communications (IMC) is defined as customer centric, data driven method of communicating with the customers. IMC is the coordination and integration of all marketing communication tools, avenues, functions and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost7.

These theoretical frameworks will be very helpful to border the making of Levis case study analysis, so the writing will not be out of topic.

ANALYSIS

Levis is a global famous brand in jeans. There have been so many countries selling this brand to youth people as the main market segment of Levis, including Europe and Asia. However, Levis still needs to know whether it needs to adopt with culture of every country that will be injected with Levis products. Thats why Levis conducted market research before it began to sell its product in Asia. In market research, marketers should know first about their target segments demographically and psychographically, so does Levis. Levis primary market segment is youth with a base of 15-19-year-old males. Yet, Levis cannot just use the same segment in Asia because demographically and psychographically, youth in Europe, America, and Asia is different. In order to choose the best marketing strategy to be implemented in Asia, Levis set different market segment based on its research. Levis has found some interesting facts about psychographic condition of Asian youth. Levis found that belonging and responsibilities to the group overwhelm personal ambitions where the expectation from parents, teachers, and culture surround Asian youth. Therefore, Asian youth feel anxious about disappointment, disapproval, and even shame that might follow failure. On the other hand, Asian youth is not always stressful and worried. There are also feelings of optimism in their mind. There is a sense of youth identity that they are the inheritors of the new world. They also have their own aspirations, like the independence of living by themselves and not their parents, not being restricted to marrying within the race, not having to be heterosexual, and being allowed to be themselves more. Some of the aspirational values from Asian youth are actually similar with other countries around the world, though it is more repressed in Asia.

Asian youth is actually brand-fickle which means that they are not very loyal to particular brands and most likely to often change brands for products they buy to fulfilling their needs. But, research has found that Levis in Asian youth views are American, original jeans, high quality, cool, self-confident, and sets trends. Thats why, it is such a challenge for Levis to introduce and inject its brand values and personality to Asian youth. Levis personality is composed by eight characteristics of values that picture Levis the best: Original, Masculine, Sexy, Youthful, Rebellious, Individual, Free, and American. Levis also has brand rational associations in addition of the brand personality: Original, Simple, Strong, Reliable, and Long-lasting. These characteristics of Levis that wants to be introduced to youth represent aspirational way of life for youth around the world. These values are given to Asian youth in order to inspire them to be more individual and not strictly follow traditional Asian culture in a whole. Levis tries to capture the problem of Asian youth and provides solutions through its values brought by Levis products. By all of these characteristics and rational associations, Levis created brand positioning statement as The original and definitive American jeans (rational) that celebrates all the great things about being young (emotional). Through these characteristics and rational associations also, Levis tried to inspire Asian youth with the acknowledgement that young people have the freedom to make their own decisions to buy something that they want influenced by their rational and emotional appeal.

Levis also agrees that peers and role models will influence many people who adore them. thats why, Levis targeting hierarchy is drawn like a pyramid, with the opinion leaders take place at the top of pyramid, followed by Early Adopters, Late Adopters, and finally Mass Market. The picture of the targeting hierarchy is as follows:

No matter when and where, Levis stays true to its brand personality, although Levis packed it with different and creative portrays. When Levis wants to enter Asian market, the first thing Levis did was to re-establish and reconfirm the brand values because it needs to make adjustments for local circumstances and condition in Asia, and adapt to Asian culture to be approved in Asian market. The value of rebellion, for example, is not really acceptable in Japan. Thats why Levis played down rebellion value in Japan. Levis makes adjustment in its values and rotate them carefully in an integrated marketing communications strategy, so that over time the audience is exposed to all of them. In catching the heart of opinion leaders as its segment, Levis also put events for them on an invitation-only basis, and adjusting the words the company uses to be similar with words that the opinion leaders use. Based on Global Brand Equity Study, Millward Brown International, Levis has certainly done well in Asia among the 15-29-year-olds, as a recent brand research

shows that Levis current position in brand measure ranked 1st in quality, sexy, cool, youthful, and sets the trends. Levis success never guarantees the safety of its products in the future. The market demand will always change over time. Currently, Levis observed that the global demand has shifting towards new fabrics, fits, and finishes. The traditional denim jeans products that sold by Levis is slowly losing its appeal in consumers sight. However, Levis apparently holds the biggest appeal in Asian region. But, Levis strategy has never been to follow the trends in the words. Its value is to sets the trends. Levis positioning will always has classic status. Levis believe that the fashion market is cycling. If an item is popular, it will be popular again in the future, and will have more appeal than ever. Thats why, research is very important in marketing to understand how and why customers tastes are changing over time and what that means for the brands. Research makes the marketing effort easier by providing relevant data to be analyzed and to decide the marketing strategy to be applied. Eventually, Levis decided to create a portfolio of brands and sub-brands. Levis takes lessons from its researches. Even though Levis has been accepted in many countries, it needs to have different approach to reach Asian market. Levis also knows that the same principles apply to building brands in Asia as anywhere else around the world. First, companies must generate consumer insight. Second, that having a vision and mission for the brand is vital, and the third, creative execution must reflect the brand personality and desired consumer associations. Before executing marketing strategy to a particular market, companies need to understand social background of every market, know the roots of problems to understand the needs.

CONCLUSION

Whatever the companies are, marketing research is really important to be conducted. Marketing research gives many beneficial for the companies to understand the condition if companies target markets before companies decide to enter particular market. After having well-conducted research, companies are able to decide the most proper marketing strategy to be implemented. Levis as one of many famous global brand in the world also conducted so many research before implementing its marketing strategies. When Levis wants to enter Asian market, Levis needs to know first the demographic and psychographic circumstances in Asia, and how is the behavior of Asian. It is necessary because even though the strategy is not really different from other countries, Levis needs different approach to reach Asian market. Not all Asians can accept brand values and personality brought by Levis. After understanding the condition of its market, Levis is able to create marketing strategy starting from the segmentation, targeting, and positioning. It is proven by the effort of Levis to inspire Asian youth to be more independent and self-confident, not always follow the traditional rules by Asian. Slowly but sure, Levis succeeded in entering Asian market, even having the biggest brand appeal in Asia than in other continents.

REFERENCES

1. http://www.marketingpower.com/AboutAMA/Pages/DefinitionofMarke ting.aspx 2. http://www.entrepreneur.com/encyclopedia/term/82436.html 3. http://www.marketingpower.com/_layouts/Dictionary.aspx? dLetter=M 4. Schiffman, L.G. & Kanuk, L.L. (2010). Consumer Behavior, Tenth Edition. New York: Pearson Education International. 5. http://www.marketingpower.com/_layouts/Dictionary.aspx? dLetter=B 6. http://commguide.asu.edu/brand/values 7. Clow, Kenneth E.; Baack, Donald (2007). Integrated Advertising, Promotion, and Marketing Communications 3rd edition. Pearson Education. pp. 910.