Thursday, August 5, 2010
Wednesday, August 4, 2010
Levi's Tactics of the Past Reviewed- with outcomes
In the 1980s things began to change for Levi Strauss and company. Growth slowed in the aged 12-24 primary market. Levis decided to expand product lines as sales of 501s declined. They produced corduroy pants and more stylized denim pants for men, women and children. They produced ‘action suits’, blazers, sportswear, and thousand of different articles of clothing for families including maternity wear. At this point they also considered acquisitions as a strategy to provide further growth. In 1979, they acquired Koracorp Industries for $185 million to enhance its women’s wear division. Koracorp included Koret women’s wear, Pyer-Rolnick hats, Oxford men’s suits, and a European based children’s clothing division. Levis also bought Pesitol hats, Rainfair Industrial clothing, Frank Shorter running gear. In addition it established several licensing agreements which allowed the Levis labels to be used on shoes and socks, and with the designers Perry Ellis, Alexander Jullian, and Andre Fezza for a more upscale market segment. Now Levi Strauss was in a position to meet the demand of almost any market need.
Unfortunately the customers did not see it that way. In spite of the diversification and even with a hugely expanded advertising budget which increased to $100 million in 1978, the company’s sales declined every year from 1980 to 1983 with a net income decline of 76%. In 1981, Robert Grohman took over as chief executive officer (CEO), marking the first time the company was led by someone without ties to the Strauss family.
In 1983, Levis began selling in Sears and JCPenney but the net result was not positive beyond the first year. They had simply diversified too much. They no longer had a clear and distinctive identity. The decision was made to focus on core products and to improve retail relationships which had suffered from too little attention and quality issues. Grohman could not turn the company around, and Robert Haas, son of Walter Haas Jr., took control in 1984. In October of 1984, Tom Tusher was named Executive VP and CEO. He nixed a potential deal to expand into Wal-Mart and Kmart in favour of focusing on existing distributors. He directed focus onto preservation of the ‘important values and traditions’. Jeans and corduroys created two thirds of their revenue and thus they were to be re-emphasized. This is an important choice that many companies today are just beginning to imitate. The company was directed to grow from the bottom line through efficiencies, market penetration, and cost savings.
In mid 1985, the LS&Co. lost $114 million. It was taken private through the largest ever leveraged buyout valued at $1.65 billion. Almost immediately, licensing agreements were cancelled with Perry Ellis and Andrew Fezza. Noncore businesses were sold to pay down debt. These included: Rainfair in 1984, Resistol in 1985, and Oxford, Frank Shorter and Koret of North America in 1987. (It should be noted that somehow LS&Co. missed a huge opportunity and trend in the Frank Shorter Company. The man who established this company was an utter icon in the running industry. I believe that if they had any of the talent or vision that Nike demonstrated in this period they could have made this into a multimillion dollar business). In addition, 40 factories were closed and 12,000 employees were let go by 1986. Even with all these changes market forces were against them. Consumer tastes had changed and competition increased. Designers like Calvin Klein, Bill Blass, and Gloria Vanderbilt usurped Levis place as the fashion icons. Levis had not kept pace with the consumer demands and missed the trends toward bleached, faded or ‘washed’ denim.
The article posted below indicates that Levi's has decided to reattempt these previously failed tactics in diversification. Will it work? Never say never but.....................
Unfortunately the customers did not see it that way. In spite of the diversification and even with a hugely expanded advertising budget which increased to $100 million in 1978, the company’s sales declined every year from 1980 to 1983 with a net income decline of 76%. In 1981, Robert Grohman took over as chief executive officer (CEO), marking the first time the company was led by someone without ties to the Strauss family.
In 1983, Levis began selling in Sears and JCPenney but the net result was not positive beyond the first year. They had simply diversified too much. They no longer had a clear and distinctive identity. The decision was made to focus on core products and to improve retail relationships which had suffered from too little attention and quality issues. Grohman could not turn the company around, and Robert Haas, son of Walter Haas Jr., took control in 1984. In October of 1984, Tom Tusher was named Executive VP and CEO. He nixed a potential deal to expand into Wal-Mart and Kmart in favour of focusing on existing distributors. He directed focus onto preservation of the ‘important values and traditions’. Jeans and corduroys created two thirds of their revenue and thus they were to be re-emphasized. This is an important choice that many companies today are just beginning to imitate. The company was directed to grow from the bottom line through efficiencies, market penetration, and cost savings.
In mid 1985, the LS&Co. lost $114 million. It was taken private through the largest ever leveraged buyout valued at $1.65 billion. Almost immediately, licensing agreements were cancelled with Perry Ellis and Andrew Fezza. Noncore businesses were sold to pay down debt. These included: Rainfair in 1984, Resistol in 1985, and Oxford, Frank Shorter and Koret of North America in 1987. (It should be noted that somehow LS&Co. missed a huge opportunity and trend in the Frank Shorter Company. The man who established this company was an utter icon in the running industry. I believe that if they had any of the talent or vision that Nike demonstrated in this period they could have made this into a multimillion dollar business). In addition, 40 factories were closed and 12,000 employees were let go by 1986. Even with all these changes market forces were against them. Consumer tastes had changed and competition increased. Designers like Calvin Klein, Bill Blass, and Gloria Vanderbilt usurped Levis place as the fashion icons. Levis had not kept pace with the consumer demands and missed the trends toward bleached, faded or ‘washed’ denim.
The article posted below indicates that Levi's has decided to reattempt these previously failed tactics in diversification. Will it work? Never say never but.....................
Levi's recycles old tactics
Levi's ® Brand and Filson® Partner to Introduce 'Levi's® Workwear by Filson®'
New Collection of Workwear-Inspired Men's Apparel and Accessories, Made in the USA
SAN FRANCISCO, Aug. 3 /PRNewswire/ -- This week, the Levi's® brand announces a new design partnership and exclusive menswear collection with Seattle-based outdoors outfitter Filson®. The new collection marries the uncompromised craftsmanship, rich history and pioneering spirit shared by the two apparel leaders. The Levi's® Workwear by Filson® range spotlights the blue-jean inventor's iconic workwear origins and silhouettes, while utilizing Filson's® superior manufacturing techniques, signature fabrications and iconic styles. This exclusive collection of built-to-last, highly functional men's apparel and accessories carries the lifetime guarantee associated with both partners involved and will be sold in select Levi's® and Filson® retail stores and on www.levi.com and www.filson.com beginning this August 2010.
Levi's® Workwear by Filson® includes durable outdoor clothing made from only the finest and sturdiest materials including oil finish Tin Cloth, Rugged Twill, Genuine Bridle Leather, brass hardware and rigid denims. The miners, loggers, cowboys and mariners who pioneered the American frontier demanded clothing that was as tough as they were. Whether they were building, exploring, or searching for gold, men of every trade relied on outfitters that sold quality goods, made strong for the work of the day. So it's no surprise that quality, craftsmanship and attention to detail have been – and continue to be – paramount to Levi's® and Filson® clothing.
"Levi's® and Filson's® celebrated workwear products helped equip the pioneers who built America, and continue to be embraced today by the new American pioneers who are reshaping the landscape of America," said Carl Chiara, director of Men's and Women's Brand Concepts for the Levi's® Brand, the Americas. "The Levi's® brand has been renowned for its artisanship, quality and reliability since inventing the blue jean in 1873 and our partnership with Filson® is a natural, authentic extension of these trailblazing brand values."
"The Filson® and Levi's® brands have made quality products for well over 100 years that, in essence, have stood the test of time because of their original iconic designs and sturdy materials," said Bill Kulczycki, CEO of Filson. "The Levi's® and Filson® Workwear collaboration celebrates each brand's hallmark qualities and the fact that both have been handed down through generations. This collection – made in Seattle, Washington – presents the best of the best from the Levi's® and Filson® brands, reinforcing their relevance in a time when consumers' emotional connection to brands is paramount."
Levi's® Workwear by Filson® is a carefully crafted assortment of quality menswear, where key silhouettes from one brand are cut from celebrated textiles synonymous with the collaborative partner. For example, the line features the original Levi's® Trucker Jacket made with Filson's sturdy oil finish Tin Cloth; the Filson® Cruiser Jacket cut in Levi's® iconic rigid denim; the first ever, fully functional denim shooting shirt; a rigid denim and wool cap; and a selection of bags – two tote styles and a small duffle – built to withstand heavy use. Each product was meticulously crafted by skilled workers in C.C. Filson's factory in Seattle, Washington. Arriving in Levi's® and Filson® retail stores and on levi.com in August, the collection will range in price from $50 to $228.
The Levi's® Workwear by Filson® collection is the latest endeavor in an ongoing series of special Levi's® products and styles that are constructed, finished and manufactured in the United States, using imported materials. Previous Levi's® Made in the USA lines include collaborative limited-edition collections developed with Brooks Brothers, Opening Ceremony, Robert Geller and Engineered Garments.
New Collection of Workwear-Inspired Men's Apparel and Accessories, Made in the USA
SAN FRANCISCO, Aug. 3 /PRNewswire/ -- This week, the Levi's® brand announces a new design partnership and exclusive menswear collection with Seattle-based outdoors outfitter Filson®. The new collection marries the uncompromised craftsmanship, rich history and pioneering spirit shared by the two apparel leaders. The Levi's® Workwear by Filson® range spotlights the blue-jean inventor's iconic workwear origins and silhouettes, while utilizing Filson's® superior manufacturing techniques, signature fabrications and iconic styles. This exclusive collection of built-to-last, highly functional men's apparel and accessories carries the lifetime guarantee associated with both partners involved and will be sold in select Levi's® and Filson® retail stores and on www.levi.com and www.filson.com beginning this August 2010.
Levi's® Workwear by Filson® includes durable outdoor clothing made from only the finest and sturdiest materials including oil finish Tin Cloth, Rugged Twill, Genuine Bridle Leather, brass hardware and rigid denims. The miners, loggers, cowboys and mariners who pioneered the American frontier demanded clothing that was as tough as they were. Whether they were building, exploring, or searching for gold, men of every trade relied on outfitters that sold quality goods, made strong for the work of the day. So it's no surprise that quality, craftsmanship and attention to detail have been – and continue to be – paramount to Levi's® and Filson® clothing.
"Levi's® and Filson's® celebrated workwear products helped equip the pioneers who built America, and continue to be embraced today by the new American pioneers who are reshaping the landscape of America," said Carl Chiara, director of Men's and Women's Brand Concepts for the Levi's® Brand, the Americas. "The Levi's® brand has been renowned for its artisanship, quality and reliability since inventing the blue jean in 1873 and our partnership with Filson® is a natural, authentic extension of these trailblazing brand values."
"The Filson® and Levi's® brands have made quality products for well over 100 years that, in essence, have stood the test of time because of their original iconic designs and sturdy materials," said Bill Kulczycki, CEO of Filson. "The Levi's® and Filson® Workwear collaboration celebrates each brand's hallmark qualities and the fact that both have been handed down through generations. This collection – made in Seattle, Washington – presents the best of the best from the Levi's® and Filson® brands, reinforcing their relevance in a time when consumers' emotional connection to brands is paramount."
Levi's® Workwear by Filson® is a carefully crafted assortment of quality menswear, where key silhouettes from one brand are cut from celebrated textiles synonymous with the collaborative partner. For example, the line features the original Levi's® Trucker Jacket made with Filson's sturdy oil finish Tin Cloth; the Filson® Cruiser Jacket cut in Levi's® iconic rigid denim; the first ever, fully functional denim shooting shirt; a rigid denim and wool cap; and a selection of bags – two tote styles and a small duffle – built to withstand heavy use. Each product was meticulously crafted by skilled workers in C.C. Filson's factory in Seattle, Washington. Arriving in Levi's® and Filson® retail stores and on levi.com in August, the collection will range in price from $50 to $228.
The Levi's® Workwear by Filson® collection is the latest endeavor in an ongoing series of special Levi's® products and styles that are constructed, finished and manufactured in the United States, using imported materials. Previous Levi's® Made in the USA lines include collaborative limited-edition collections developed with Brooks Brothers, Opening Ceremony, Robert Geller and Engineered Garments.
Tuesday, August 3, 2010
Monday, August 2, 2010
Levi’s Cinema Tour: Famous Films in Famous Cities
Levi’s is inviting American consumers to watch of movies in the open air within the period of August 6—27. The famed jeans maker has teamed up with the Alamo Drafthouse (an American cinema chain) and Gowalla (a social network) to arrange cinematic trips, “Rolling Roadshow,” across the country and give Americans an opportunity to watch iconic movies outdoors. The new initiative comes as a part of the massive “We Are All Workers” campaign, launched earlier this summer.
The program includes 9 movies, and each of them will be screened on the location where it was initially filmed or set. The list of films, which will be shown for free, include “On The Waterfront” (Hoboken, NJ), “The Blues Brothers” (Joliet, Illinois “Jackie Brown” (Torrance, CA), “Robocop” (Detroit), ),”There Will Be Blood” (Bakersfield, CA), the first three “Rocky” films (Philadelphia), “Dirty Harry” (San Francisco),”Convoy” and “Red Dawn” (Las Vegas), and “The Godfather II” (New York, NY). The brand will also arrange a number of related events at each of the locations to celebrate the Levi’s dedication to common people. Those, who want to join in, are invited to the Levi’s Facebook page and the Gowalla brand’s feed, where they will be able to confirm participation and lean more about the events. The first 50 users, who will ‘follow the trips’, will receive the tickets.
The program includes 9 movies, and each of them will be screened on the location where it was initially filmed or set. The list of films, which will be shown for free, include “On The Waterfront” (Hoboken, NJ), “The Blues Brothers” (Joliet, Illinois “Jackie Brown” (Torrance, CA), “Robocop” (Detroit), ),”There Will Be Blood” (Bakersfield, CA), the first three “Rocky” films (Philadelphia), “Dirty Harry” (San Francisco),”Convoy” and “Red Dawn” (Las Vegas), and “The Godfather II” (New York, NY). The brand will also arrange a number of related events at each of the locations to celebrate the Levi’s dedication to common people. Those, who want to join in, are invited to the Levi’s Facebook page and the Gowalla brand’s feed, where they will be able to confirm participation and lean more about the events. The first 50 users, who will ‘follow the trips’, will receive the tickets.
Sunday, August 1, 2010
Saturday, July 31, 2010
Friday, July 30, 2010
Thursday, July 29, 2010
Wednesday, July 28, 2010
Tuesday, July 27, 2010
Karl Gensberg reports- The new Levi's Girl
The Levi’s brand has chosen one Meghan Smith as its first Levi’s Girl. Smith, now living in bohemian splendor – presumably – in the People’s Republic of Brooklyn, NY (my uncle, a real estate lawyer, calls it that) will be the online personality targeting women. The company says she won by creating a two-minute video through Levi’s Facebook app to get the six-month paid position in the Levi’s marketing department.
Smith will get an immersion course in Levi’s marketing with a focus on social media efforts. She will also be “Style Ambassador” for Levi’s Women, which means she will post looks and designs online, and “channel her ideas, outlook and discoveries to millions of people around the world.” Which sounds like she’s angling for L. Ron Hubbard’s job.
Smith, who alas, will be leaving us Brooklynites for San Francisco (don’t ask my uncle what he thinks of that) will also cover news and live events for the brand.
Copied directly from Raw news
Smith will get an immersion course in Levi’s marketing with a focus on social media efforts. She will also be “Style Ambassador” for Levi’s Women, which means she will post looks and designs online, and “channel her ideas, outlook and discoveries to millions of people around the world.” Which sounds like she’s angling for L. Ron Hubbard’s job.
Smith, who alas, will be leaving us Brooklynites for San Francisco (don’t ask my uncle what he thinks of that) will also cover news and live events for the brand.
Copied directly from Raw news
Monday, July 26, 2010
Sunday, July 25, 2010
Levi Strauss Foundation
Levis Strauss & CO. and the Levi Strauss Foundation have been Save the Children supporters for close to twenty years. Levi Strauss & CO. employees have kindly donated to Save the Children through the Company’s workplace campaign since 1985, which the foundation generously matches. Levis Strauss & CO. and the Levi Strauss Foundation have also issued grants and contributions for our U.S. programs in Appalachia, and most recently, for our relief and reconstruction efforts in Indonesia. All told, Save the Children has been the recipient of over $350,000 from Levis Strauss & CO. and the Levi Strauss Foundation and we are most grateful for their continued friendship.
Saturday, July 24, 2010
Levi Strauss Foundation - Their mission
A company that gets it!
The Levi Strauss Foundation advances the human rights and well being of underserved people touched by our business by taking courageous risks, supporting innovative community partnerships, and promoting the practice of good corporate citizenship.
The Levi Strauss Foundation advances the human rights and well being of underserved people touched by our business by taking courageous risks, supporting innovative community partnerships, and promoting the practice of good corporate citizenship.
Friday, July 23, 2010
Thursday, July 22, 2010
Levi Strauss & Co. Elects Fernando Aguirre to Its Board
From Business Wire Magazine....................
SAN FRANCISCO, Jul 21, 2010 (BUSINESS WIRE) -- Levi Strauss & Co. (LS&Co.) today announced the election of Fernando Aguirre, chairman, president and chief executive officer of Chiquita Brands International, Inc., to its board of directors effective October 1.
"Throughout his career, Fernando has successfully led large, global consumer brands," said LS&Co. Chairman Richard Kauffman. "He understands how to translate consumer insights into strategies that drive growth across cultures. Fernando's experience as a successful brand-builder and global leader will bring tremendous insights to our board deliberations."
Aguirre, 52, joined Chiquita Brands International, Inc., in 2004. Since taking over as Chiquita's CEO, he has led the company's strategic business transformation, leveraging the strong equity of the company's brands around the world, expanding into new markets and products and acquiring other top food companies to secure Chiquita's position as an international leader in fresh foods. Before joining Chiquita, Aguirre spent 23 years at Procter & Gamble Company in a number of senior leadership roles where he managed multimillion-dollar global consumer businesses and help set the company's global strategic direction as a member of its Global Leadership Council. He earned his B.S. in Business Administration at Southern Illinois University.
SAN FRANCISCO, Jul 21, 2010 (BUSINESS WIRE) -- Levi Strauss & Co. (LS&Co.) today announced the election of Fernando Aguirre, chairman, president and chief executive officer of Chiquita Brands International, Inc., to its board of directors effective October 1.
"Throughout his career, Fernando has successfully led large, global consumer brands," said LS&Co. Chairman Richard Kauffman. "He understands how to translate consumer insights into strategies that drive growth across cultures. Fernando's experience as a successful brand-builder and global leader will bring tremendous insights to our board deliberations."
Aguirre, 52, joined Chiquita Brands International, Inc., in 2004. Since taking over as Chiquita's CEO, he has led the company's strategic business transformation, leveraging the strong equity of the company's brands around the world, expanding into new markets and products and acquiring other top food companies to secure Chiquita's position as an international leader in fresh foods. Before joining Chiquita, Aguirre spent 23 years at Procter & Gamble Company in a number of senior leadership roles where he managed multimillion-dollar global consumer businesses and help set the company's global strategic direction as a member of its Global Leadership Council. He earned his B.S. in Business Administration at Southern Illinois University.
Wednesday, July 21, 2010
Tuesday, July 20, 2010
Monday, July 19, 2010
Sunday, July 18, 2010
What does the recent report of losses mean?
Levi Strauss & Co. said its fiscal second-quarter widened as the jeans maker recorded financing costs and write-downs on deferred tax assets, masking higher revenue and gross-margin improvement. They certainly took a hit in this environment and financial meltdown but the company is very healthy.
The company has said it expects its strong cash position to improve and fund ambitious retail growth plans over the next two years. Levi, which specializes in riveted denim jeans and different lines of casual and street fashion, ended the quarter with cash and cash equivalents of $353.1 million, up 31% from a year earlier.
On Tuesday, John Anderson , president and chief executive said the latest results proved Levi was benefiting from the company's investments in its business in recent years. "We are seeing the benefit of our investments in the business over recent years," Mr. Anderson said. "The Levi's brand is performing well, and consumers are responding to our more innovative products."
In April, Fitch Ratings touted the company's considerable liquidity and minimal debt maturities, as well as its well-known brand names and wide geographic diversity. The ratings agency warned margins would be pressured this year as the company expands globally, but should improve in 2011 and beyond. Still, gross margin managed to grow in the latest quarter, widening to 51.1% from 45.9% due to the increased contribution from company-operated retail stores, which Levi says typically generate a higher margin than the wholesale business. For the quarter ended May 30, Levi's loss widened to $14.4 million from $4.1 million. I think this reflects the updating and investment in its own brands.
Net sales jumped 8% to $976.5 million. Sales rose 8% in the Americas, where Levi does the bulk of its business. I think this is in direct response to new advertising initiatives that are catching the public's attention. The new marketing approaches are working. Asia Pacific sales were up by the same amount, while Europe's sales grew 9%.
The company said operating income for the second quarter increased to $69 million from $56 million in the year-earlier quarter, but the 23% gain was stemmed mainly from the favorable impact of foreign-currency translations. Selling, general and administrative expenses for the second quarter increased to $430 million from $359 million in the same period of 2009.
The company has said it expects its strong cash position to improve and fund ambitious retail growth plans over the next two years. Levi, which specializes in riveted denim jeans and different lines of casual and street fashion, ended the quarter with cash and cash equivalents of $353.1 million, up 31% from a year earlier.
On Tuesday, John Anderson , president and chief executive said the latest results proved Levi was benefiting from the company's investments in its business in recent years. "We are seeing the benefit of our investments in the business over recent years," Mr. Anderson said. "The Levi's brand is performing well, and consumers are responding to our more innovative products."
In April, Fitch Ratings touted the company's considerable liquidity and minimal debt maturities, as well as its well-known brand names and wide geographic diversity. The ratings agency warned margins would be pressured this year as the company expands globally, but should improve in 2011 and beyond. Still, gross margin managed to grow in the latest quarter, widening to 51.1% from 45.9% due to the increased contribution from company-operated retail stores, which Levi says typically generate a higher margin than the wholesale business. For the quarter ended May 30, Levi's loss widened to $14.4 million from $4.1 million. I think this reflects the updating and investment in its own brands.
Net sales jumped 8% to $976.5 million. Sales rose 8% in the Americas, where Levi does the bulk of its business. I think this is in direct response to new advertising initiatives that are catching the public's attention. The new marketing approaches are working. Asia Pacific sales were up by the same amount, while Europe's sales grew 9%.
The company said operating income for the second quarter increased to $69 million from $56 million in the year-earlier quarter, but the 23% gain was stemmed mainly from the favorable impact of foreign-currency translations. Selling, general and administrative expenses for the second quarter increased to $430 million from $359 million in the same period of 2009.
Saturday, July 17, 2010
Friday, July 16, 2010
Thursday, July 15, 2010
Last Levi's ad by Bartle, Bogle and Hegarty
Bartle, Bogle and Hegarty announced that they would no longer create advertising for Levi Strauss and I searched for the last television as that they did for the company. It was memorable but it was in 2008. They have represented Levi's since 1982.
Wednesday, July 14, 2010
Wednesday, July 7, 2010
Tuesday, July 6, 2010
Levi's Workshops
Levi's have been worn by the craftsmen, laborers and artisans which shaped the energy and events of our times. This week, the Levi's brand celebrates a new generation of pioneers and creative communities across the country with the launch of Levi's Workshops. Levi's Workshops will encourage global involvement through a dedicated website, various social media platforms and syndicated daily content. The website will launch alongside the San Francisco Workshop in early July. Original content supported by articles from renowned guest bloggers will be posted daily, in addition to updates on Twitter, Facebook and Flickr. Supporting the written content will be a series of films highlighting the spirit of the Levi's Workshops. These films will be a catalyst for spreading the message of the Levi's Workshops while documenting the activity happening inside each environment. The website will also include opportunities to purchase Levi's products offered in the Levi's Workshops. Taking a new, innovative approach to integrating community involvement with retailing, the first Levi's Workshop debuts this week in San Francisco followed by a second expression of the program later this fall in New York City. The Levi's Workshops will be multi-use spaces, featuring a functional workshop, community event space and retail storefront. Each Workshop is designed to focus on a specific craft including printmaking in the San Francisco Workshop and photography in the New York City shop.
The Levi's Workshops will serve as community-based extensions of the brand's Go Forth marketing campaign, paying homage to the principles of hard work and civic engagement. Central to the Workshop program will be collaborations with recognized pioneers from each community. For eight weeks, each Levi's® Workshop will open its doors to the general public and host a range of interactive demonstrations, educational programming and events.
The first of the Levi's Workshops will open to the public this week in San Francisco's Mission district, just down the street from one of Levi's® original factories. Located at 580-582 Valencia Street, the Workshop will feature letterpress, silkscreen and photocopy equipment for local artists and designers to create their own print-based artwork. Community groups and non-profit organizations will also be invited to access these resources and work with the Workshop staff. The space will also offer Levi's® denim and workwear product that embodies the spirit and craft of print design.
To leverage the energy of the Levi's Workshops, the brand has invited local pioneers to execute printmaking-based collaborations including:
•Alice Waters - chef, author and proprietor of Chez Panisse Restaurant in Berkeley, California. Waters is also the Vice President of Slow Food International and a leader of the culinary philosophy based on using only the freshest organic products served in season. Waters' commitment to education led to the creation of The Edible Schoolyard, a one-acre garden and adjacent kitchen classroom at Berkeley's Martin Luther King Jr. Middle School which has grown into a national program. For her collaboration with the Levi's® Workshops, Waters is working with a longtime design collaborator to create an educational poster for the Edible Schoolyard. "Levi's® is bringing together art, food and the local community," said Alice Waters. "This is what Chez Panisse has always been about and what excites me most about the Levi's® Workshops."
•Craig Newmark – an Internet entrepreneur best known for founding the San Francisco-based website Craigslist.org, a site where people can help each other with everyday needs including housing and jobs searches. The site embraces a culture of trust, based on shared values. Newmark's resume includes thirty years working with computers for leading companies including IBM, GM, Charles Schwab & Co., and Bank of America. Newmark has partnered with the Levi's® Workshops, combining his expertise in digital media with manual printmaking to share powerful messages.
•Aaron Rose – artist, film director, curator and writer. Rose directed the documentary film Beautiful Losers (2008) and recently completed the short documentary film Become a Microscope based on the life of the 1960s artist/activist nun Sister Corita. Rose's publishing imprint Alleged Press releases hardcover books by contemporary artists. Levi's® Workshops celebrates his pioneering work as an advocate for positive creative voices in the arts. "I am thrilled to be able to bring the work of Sister Corita to the Levi's® Workshops in San Francisco," said Rose. "Corita is a huge inspiration to me, and hopefully will have the same effect on the people who take part in our workshop."
"The Levi's® Workshops celebrate the pioneering spirit and hard work of people and organizations that we admire," said Joshua Katz, head of Collaborations, Partnerships & Creative Concepts for the Levi's® brand. "It's all about community, creativity and collaboration. Through the programming, the various production projects and the public resources that we are providing, we are able to collaborate with local heroes who have mastered their craft while inviting in the broader community to roll up their sleeves and get to work."
For more information about Levi's® Workshops and a full list of events, please visit http://workshops.levi.com.
The Levi's Workshops will serve as community-based extensions of the brand's Go Forth marketing campaign, paying homage to the principles of hard work and civic engagement. Central to the Workshop program will be collaborations with recognized pioneers from each community. For eight weeks, each Levi's® Workshop will open its doors to the general public and host a range of interactive demonstrations, educational programming and events.
The first of the Levi's Workshops will open to the public this week in San Francisco's Mission district, just down the street from one of Levi's® original factories. Located at 580-582 Valencia Street, the Workshop will feature letterpress, silkscreen and photocopy equipment for local artists and designers to create their own print-based artwork. Community groups and non-profit organizations will also be invited to access these resources and work with the Workshop staff. The space will also offer Levi's® denim and workwear product that embodies the spirit and craft of print design.
To leverage the energy of the Levi's Workshops, the brand has invited local pioneers to execute printmaking-based collaborations including:
•Alice Waters - chef, author and proprietor of Chez Panisse Restaurant in Berkeley, California. Waters is also the Vice President of Slow Food International and a leader of the culinary philosophy based on using only the freshest organic products served in season. Waters' commitment to education led to the creation of The Edible Schoolyard, a one-acre garden and adjacent kitchen classroom at Berkeley's Martin Luther King Jr. Middle School which has grown into a national program. For her collaboration with the Levi's® Workshops, Waters is working with a longtime design collaborator to create an educational poster for the Edible Schoolyard. "Levi's® is bringing together art, food and the local community," said Alice Waters. "This is what Chez Panisse has always been about and what excites me most about the Levi's® Workshops."
•Craig Newmark – an Internet entrepreneur best known for founding the San Francisco-based website Craigslist.org, a site where people can help each other with everyday needs including housing and jobs searches. The site embraces a culture of trust, based on shared values. Newmark's resume includes thirty years working with computers for leading companies including IBM, GM, Charles Schwab & Co., and Bank of America. Newmark has partnered with the Levi's® Workshops, combining his expertise in digital media with manual printmaking to share powerful messages.
•Aaron Rose – artist, film director, curator and writer. Rose directed the documentary film Beautiful Losers (2008) and recently completed the short documentary film Become a Microscope based on the life of the 1960s artist/activist nun Sister Corita. Rose's publishing imprint Alleged Press releases hardcover books by contemporary artists. Levi's® Workshops celebrates his pioneering work as an advocate for positive creative voices in the arts. "I am thrilled to be able to bring the work of Sister Corita to the Levi's® Workshops in San Francisco," said Rose. "Corita is a huge inspiration to me, and hopefully will have the same effect on the people who take part in our workshop."
"The Levi's® Workshops celebrate the pioneering spirit and hard work of people and organizations that we admire," said Joshua Katz, head of Collaborations, Partnerships & Creative Concepts for the Levi's® brand. "It's all about community, creativity and collaboration. Through the programming, the various production projects and the public resources that we are providing, we are able to collaborate with local heroes who have mastered their craft while inviting in the broader community to roll up their sleeves and get to work."
For more information about Levi's® Workshops and a full list of events, please visit http://workshops.levi.com.
Monday, July 5, 2010
Sunday, July 4, 2010
Supporting the Companies that do it right
One of the few really impactful actions that we can all take is to support companies which are trying to do it right, in effect voting with your dollars to create the world you want to live in. After having studied Levi's pretty thoroughly for an MBA course I think that they are doing a good job of trying to be good global citizens. If you are going to buy jeans or other denim items, you are unlikely to regret supporting this company. It is scrutinizing and appears to be actin upon its own carbon footprint, its pollution contributions, its labor policies and its international impact. I would give it an A- with my only reservation being the thrust of some of the Asian commercals. I'd like to see Levi's endorse international understanding just a bit more but that is probably less likely to be edgy or controversial.
Saturday, July 3, 2010
Friday, July 2, 2010
Thursday, July 1, 2010
Wednesday, June 30, 2010
Tuesday, June 29, 2010
Monday, June 28, 2010
GREEN Levi's
Levi’s is making its ‘green commitment’ public with its ‘jean donor’ program. It has the foremost reputation for being a ‘green company’ of any in the apparel industry, including Nike. Levi’s has been active in ‘green’ since the early 1990s when it implemented global sourcing and operation guidelines. Even the label is ‘green’. Corporate offices even have a “Boot the bottle’ campaign for getting rid of plastic water bottles, retail stores are on alert for air conditioning that is too high and recycling is not just a word but an action for the company overall. It is also a leader in child labor restrictions, working conditions and human rights. (Levi’s was involved in a major scandal in the 1970s regarding these issues in Marianas). Moreover, Levi’s initiated a cross promotion with Proctor and Gamble’s Tide detergent within Walmart stores placing Coldwater Tide in displays with Levi’s to encourage cold water washing of the jeans to save energy. In 2007, a third party life cycle study was done to determine the environmental impact of 501s and Dockers Khakis. The most negative aspects of the products were at the cotton production stage and at the consumer use stage. New strategies were embraced to reduce water and pesticide usage and to improve working conditions for farmers. Levi’s joined the Better Cotton alliance with Ikea and Marks and Spencers to mobilize and consolidate buying power to influence these factors globally. In addition, Levi’s reduced packaging and launched the ‘Care Tags for our Planet’ program with environmentally friendly care instructions for washing in cold water and donating old jeans to charity rather than putting them in the trash. Their own studies have indicated that consumers care about the planet but they need to receive ideas about how to make a difference. Levi’s is very careful to be ‘authentic’ in all that they do pertaining to ‘green’. They know that insincerity could cost them customers permanently and that their efforts must be much more than ‘greenwashing’. They discovered the people will not pay more for organic unless there is a tangible or intrinsic value. Apparently consumers are convinced that Levi’s is a green company. MapChange, an environmental organization that assesses the ‘greenness’ of companies reports that Levi’s scored an 86% on consumer perceptions of being a green company (while actually scoring a 58% on measures of greenness- which is far superior to any other apparel manufacturer).
Thursday, June 24, 2010
Wednesday, June 23, 2010
Tuesday, June 22, 2010
Monday, June 21, 2010
Sunday, June 20, 2010
Levi's and the Economy
LS&Co. has not been immune to the world economy woes. In the second quarter of 2009, it reported a loss of $4.1 million compared with earnings of $701,000 for that same quarter the previous year. There was weakness in the mature LS&Co. markets and even in Japan consumers opted for cheaper apparel and chain store retailers. Even with these problems Anderson’s intention is to prepare LS&Co. for growth as the economy improves.
The Asia-Pacific web portal has just undergone a complete revamp in support of the goal of growth. They hired OgilvyOne in Singapore to create the site with a younger, more contemporary face. It incorporates a heritage message in a very Asian settling which celebrates Asian street style. Levi’s ads for brands are on the side of recognizable Asia buildings within the site and rooms within the building tell the heritage story. The launch of the revamped website preceded the launch of a new viral campaign for Levi’s Hong Kong’s Type 1 Jeans which was aimed at the 14-24 demographic. This campaign was designed by Tequila/Hong Kong and is called the ‘How bold are you’ campaign. There is a ‘Bold’ video competition with prizes for video clips uploaded to Youtube.
The Asia-Pacific web portal has just undergone a complete revamp in support of the goal of growth. They hired OgilvyOne in Singapore to create the site with a younger, more contemporary face. It incorporates a heritage message in a very Asian settling which celebrates Asian street style. Levi’s ads for brands are on the side of recognizable Asia buildings within the site and rooms within the building tell the heritage story. The launch of the revamped website preceded the launch of a new viral campaign for Levi’s Hong Kong’s Type 1 Jeans which was aimed at the 14-24 demographic. This campaign was designed by Tequila/Hong Kong and is called the ‘How bold are you’ campaign. There is a ‘Bold’ video competition with prizes for video clips uploaded to Youtube.
Saturday, June 19, 2010
Friday, June 18, 2010
Levi's Economic picture
In the Americas, Levi’s has come back in a big way with their newest advertising campaign for jeans which features a very patriotic theme. In 2010, Levi’s advertised during the Superbowl and the ads which have a Walt Whitman poem as a voice over were a great hit. Levi’s had also purchased a number of retail stores and spent considerable sums on refurbishing the stores for a more contemporary shopping experience. For the first part of 2010, there were rising sales in the Americas. Strong currency exchange also lifted earnings results for denim sales for Levi’s. For the first quarter they reported a 17.2% rise in earnings to $56.4 million compared to $48.1 million for the same period in 2009. Revenues increased 8.8% to $1.04 billion from $951.5 million and sales gained 9.1% to $1.02 billion from $931.3 million with the Levi’s brand accounting for 84% of sales. American sales rose 8.2% to $545.2 million from $5.03.9 million. This was influenced by currency exchange but gains were also noted for the Levi’s men’s, juniors and boys wholesale channel.
At the same time the Dockers label and Signature Label showed declines. Robert Hanson, president of Levis Strauss Americas has said that revitalization of the other brands is in the works. While sales were down, Hanson reported that the Superbowl ads did provide a bump for Dockers and that online sales had increased as a direct result. Interestingly, Docker’s Europe has shown double-digit growth. European revenues rode 14.5% to $306.1 million from $267.3 aided by favorable currency exchange. The wholesale segment showed declines which were offset by company owned stores.
In the Asia Pacific region, India and China remain the growth engines. Revenues are up 2% to $183.8 million but that was boosted by a very favorable exchange rate which masks a slight decline. This was caused by lower sales in Japan. Stores are being added across India and China. In addition, LS&Co. is experimenting with selling jeans on credit with no interest fees in these markets.
At the same time the Dockers label and Signature Label showed declines. Robert Hanson, president of Levis Strauss Americas has said that revitalization of the other brands is in the works. While sales were down, Hanson reported that the Superbowl ads did provide a bump for Dockers and that online sales had increased as a direct result. Interestingly, Docker’s Europe has shown double-digit growth. European revenues rode 14.5% to $306.1 million from $267.3 aided by favorable currency exchange. The wholesale segment showed declines which were offset by company owned stores.
In the Asia Pacific region, India and China remain the growth engines. Revenues are up 2% to $183.8 million but that was boosted by a very favorable exchange rate which masks a slight decline. This was caused by lower sales in Japan. Stores are being added across India and China. In addition, LS&Co. is experimenting with selling jeans on credit with no interest fees in these markets.
Thursday, June 17, 2010
Wednesday, June 16, 2010
Tuesday, June 15, 2010
Impact of Digital on Strategy and Operations
Sharon Novak discusses digital media in the context of the fashion industry but the facts and information are relevant to all businesses.
Monday, June 14, 2010
To measure Levi’s competitive advantage there are several key accounting ratios to figure out the economic performance as well as the accounting performance. The key ratios that are going to be used are the Return on Assets (ROA), Quick Ratio (QR), and Debt to Assets (D2A). Looking at Levi’s key ratios, they were struggling within their market in 2007t. The ROA is actually competitive in their market. The number that Levi’s should be worried about is the D2A because it is over 1 which means that it has a higher risk of bankruptcy. Looking at the financial ratios gives Levi’s a sustained competitive disadvantage.
2007 2006 2005
Return on Assets 14.255% 8.523% 5.36%
Quick Ratio 1.156 .0737 1.1296
Debt to Assets 1.13818 1.3538 1.4358
Net revenue for 2008 was $4.4 billion, a 1 percent increase over prior year. Gross margin was strong at 48.6 percent compared to 46.8 percent in 2007. Operating income was $525 million, approximately 18 percent below 2007, reflecting investments in retail expansion, technology systems and global marketing efforts. Net income was $229 million, down 50 percent mostly due to a $215 million income tax benefit in 2007. Year-over-year earnings before tax, which exclude the “one-time” impact of the tax benefit, were comparable. Cash flow from operations was strong, which allowed Levi Strauss to invest in the business, pay a stockholder dividend and reduce debt. Net debt at year-end was $1.6 billion, the lowest year-end level since 1996. Global strategies helped them weather the economic downturn during the second half of the year. These strategies included building on LS&CO.’s leadership in jeans and khakis, capitalizing on their extensive global footprint, driving growth in the world’s developing markets, and expanding our retail network in each of our three regions—the Americas; Asia Pacific; and Europe, the Middle East and North Africa.
2007 2006 2005
Return on Assets 14.255% 8.523% 5.36%
Quick Ratio 1.156 .0737 1.1296
Debt to Assets 1.13818 1.3538 1.4358
Net revenue for 2008 was $4.4 billion, a 1 percent increase over prior year. Gross margin was strong at 48.6 percent compared to 46.8 percent in 2007. Operating income was $525 million, approximately 18 percent below 2007, reflecting investments in retail expansion, technology systems and global marketing efforts. Net income was $229 million, down 50 percent mostly due to a $215 million income tax benefit in 2007. Year-over-year earnings before tax, which exclude the “one-time” impact of the tax benefit, were comparable. Cash flow from operations was strong, which allowed Levi Strauss to invest in the business, pay a stockholder dividend and reduce debt. Net debt at year-end was $1.6 billion, the lowest year-end level since 1996. Global strategies helped them weather the economic downturn during the second half of the year. These strategies included building on LS&CO.’s leadership in jeans and khakis, capitalizing on their extensive global footprint, driving growth in the world’s developing markets, and expanding our retail network in each of our three regions—the Americas; Asia Pacific; and Europe, the Middle East and North Africa.
Sunday, June 13, 2010
Saturday, June 12, 2010
Levi's financial position in this downturn
LS&Co. has not been immune to the world economy woes. In the second quarter of 2009, it reported a loss of $4.1 million compared with earnings of $701,000 for that same quarter the previous year. There was weakness in the mature LS&Co. markets and even in Japan consumers opted for cheaper apparel and chain store retailers. Even with these problems Anderson’s intention is to prepare LS&Co. for growth as the economy improves.
The Asia-Pacific web portal has just undergone a complete revamp in support of the goal of growth. They hired OgilvyOne in Singapore to create the site with a younger, more contemporary face. It incorporates a heritage message in a very Asian settling which celebrates Asian street style. Levi’s ads for brands are on the side of recognizable Asia buildings within the site and rooms within the building tell the heritage story. The launch of the revamped website preceded the launch of a new viral campaign for Levi’s Hong Kong’s Type 1 Jeans which was aimed at the 14-24 demographic. This campaign was designed by Tequila/Hong Kong and is called the ‘How bold are you’ campaign. There is a ‘Bold’ video competition with prizes for video clips uploaded to Youtube.
The Asia-Pacific web portal has just undergone a complete revamp in support of the goal of growth. They hired OgilvyOne in Singapore to create the site with a younger, more contemporary face. It incorporates a heritage message in a very Asian settling which celebrates Asian street style. Levi’s ads for brands are on the side of recognizable Asia buildings within the site and rooms within the building tell the heritage story. The launch of the revamped website preceded the launch of a new viral campaign for Levi’s Hong Kong’s Type 1 Jeans which was aimed at the 14-24 demographic. This campaign was designed by Tequila/Hong Kong and is called the ‘How bold are you’ campaign. There is a ‘Bold’ video competition with prizes for video clips uploaded to Youtube.
Friday, June 11, 2010
Docker's "i wear no pants' ad
The Dockers Super Bowl television commercial became interactive by letting smartphone users tag the ad to get branded mobile content. Dockers partnered with Shazam to develop an integrated program that let consumers who watched the new Dockers “Men Without Pants” TV commercial use their mobile devices to engage at a deeper level with the brand. “The Dockers brand is always seeking to engage consumers in ways that are meaningful and relevant,” said Jen Sey, vice president of global marketing at Dockers, San Francisco. “With the explosion in mobile technologies and consumers increasingly turning to their smartphones for discovery and engagement, we wanted to make sure we were connecting with them on their terms. The integration of Shazam was developed in partnership with Ignition Factory, a creative media specialty unit of Dockers’ media buying agency OMD, a unit of Omnicom Group Inc. Viewers who installed Shazam on their smartphones can tag the TV spot and are taken to a branded-content landing page. There consumers can read about the “Wear the Pants” campaign and learn about or buy the “I Wear No Pants” music track. The ad debut also included a khaki pant giveaway promotion that could be entered on the spot via consumer mobile devices with the Shazam technology. The khaki give away ran Feb. 7–15. The commercial continues through 2010 on a variety of shows and networks including the NBA on TNT, FX, Comedy Central and the Discovery Channel. The “Wear the Pants” global ad campaign launched in December 2009 and is integrated with broadcast, print, billboard, radio, social media, events and digital marketing. The campaign has stirred up gender debate which is excellent for Dockers and their memorability.
Thursday, June 10, 2010
Wednesday, June 9, 2010
Tuesday, June 8, 2010
Monday, June 7, 2010
Sunday, June 6, 2010
Saturday, June 5, 2010
Asian Rap for Levi's
In the great mixing bowl of life that characterizes media in our time, Levi's initiates much of the mixing and stirring. For decades, Levi's has taken American concepts, images and styles to international markets. Here is another example.
Friday, June 4, 2010
Levi's and Wieden + Kennedy
In December of 2008, Levi’s changed advertising agencies and hired Wieden + Kennedy, an agency which had done many epic ads for Nike.The spots were initially shown in movie theatres in 2009 and then moved to television. They “go from traditional advertising and digital promotions to social media and mobile—the interactive campaign encouraged consumers to ‘go forth’ in provocative new ways. “We didn’t start with digital, because it’s more important to disrupt the market in a way that people look at this TV commercial, the execution, as part of a larger [multichannel] campaign and say ‘This is not really the Levi’s I know, this is a refreshed Levi’s brand.’ Coehn-Szulc says.
Levi’s is not the only brand embracing digital media. The Dockers Super Bowl television commercial became interactive by letting smartphone users tag the ad to get branded mobile content. Dockers partnered with Shazam to develop an integrated program that let consumers who watched the new Dockers “Men Without Pants” TV commercial use their mobile devices to engage at a deeper level with the brand. “The Dockers brand is always seeking to engage consumers in ways that are meaningful and relevant,” said Jen Sey, vice president of global marketing at Dockers, San Francisco. “With the explosion in mobile technologies and consumers increasingly turning to their smartphones for discovery and engagement, we wanted to make sure we were connecting with them on their terms. The integration of Shazam was developed in partnership with Ignition Factory, a creative media specialty unit of Dockers’ media buying agency OMD, a unit of Omnicom Group Inc. Viewers who installed Shazam on their smartphones can tag the TV spot and are taken to a branded-content landing page. There consumers can read about the “Wear the Pants” campaign and learn about or buy the “I Wear No Pants” music track. The ad debut also included a khaki pant giveaway promotion that could be entered on the spot via consumer mobile devices with the Shazam technology. The khaki give away ran Feb. 7–15. The commercial continues through 2010 on a variety of shows and networks including the NBA on TNT, FX, Comedy Central and the Discovery Channel. The “Wear the Pants” global ad campaign launched in December 2009 and is integrated with broadcast, print, billboard, radio, social media, events and digital marketing. The campaign has stirred up gender debate which is excellent for Dockers and their memorability.
Levi’s is not the only brand embracing digital media. The Dockers Super Bowl television commercial became interactive by letting smartphone users tag the ad to get branded mobile content. Dockers partnered with Shazam to develop an integrated program that let consumers who watched the new Dockers “Men Without Pants” TV commercial use their mobile devices to engage at a deeper level with the brand. “The Dockers brand is always seeking to engage consumers in ways that are meaningful and relevant,” said Jen Sey, vice president of global marketing at Dockers, San Francisco. “With the explosion in mobile technologies and consumers increasingly turning to their smartphones for discovery and engagement, we wanted to make sure we were connecting with them on their terms. The integration of Shazam was developed in partnership with Ignition Factory, a creative media specialty unit of Dockers’ media buying agency OMD, a unit of Omnicom Group Inc. Viewers who installed Shazam on their smartphones can tag the TV spot and are taken to a branded-content landing page. There consumers can read about the “Wear the Pants” campaign and learn about or buy the “I Wear No Pants” music track. The ad debut also included a khaki pant giveaway promotion that could be entered on the spot via consumer mobile devices with the Shazam technology. The khaki give away ran Feb. 7–15. The commercial continues through 2010 on a variety of shows and networks including the NBA on TNT, FX, Comedy Central and the Discovery Channel. The “Wear the Pants” global ad campaign launched in December 2009 and is integrated with broadcast, print, billboard, radio, social media, events and digital marketing. The campaign has stirred up gender debate which is excellent for Dockers and their memorability.
Thursday, June 3, 2010
Very edgy cultural ad by Levi's. Does it go too far or send an interesting message?
This ad is certainly one that should make us think. An asian man is chased by ominous and threatening white people. He finally decides to turn and face them and assert himself. They run. This commerical is more political and goes into different territory than any others I have seen. Is it dangerous territory? You judge.
Tuesday, June 1, 2010
Strategic Initiatives at Levi Strauss and Company
For the first two years of his tenure President Anderson worked to take care of the basics at LS&Co. In mid 2008, a new global advertising campaign was unveiled with the ‘Live Life Unbuttoned’ tagline. It focused on the traditional 501s with the button fly and it was the first world wide coordinated advertising campaign. It was very successful in elevating and reinforcing the Levi brand image. The core brand accounted for about 76% of sales in 2008 which translates to approximately $3.27 billion. This represents an increase of about 3% of sales over 2007 and 6% over 2006. The total Levi’s advertising expenditure was $297.9 million worldwide. The message that Anderson took from these stats was that a single global message could drive results and elevate the awareness of the iconic brand.
Even with the global economy on the decline, Anderson chose to take advantage of the company’s size and resources to boost brand image while competitors were doing less advertising. Jaime Cohen Szulic Chief Marketing Officer of Levi’s is embracing mobile media and moving the marketing strategy forward very quickly. The website in Singapore is a good example. He feels that courting the potential for consumers to be advocates and not just loyal is where the future will be made. “If you enact changes for the people, they will carry your brand,” he said. “It’s about moving from loyalty to advocacy. “Brand loyalty is very passive, but brand advocacy is about being active, not passive. .He believes that online advertising should be fun. Levi Strauss & Co. plans to build on traditional advertising campaigns by adding digital channels such as social media and mobile to the mix. At a conference in April of 2010, Szulc, who is also VP of Levi Strauss & Co. in San Francisco stated that the “important trends that are driving change include faster product lifecycles and challenging macro-economics, as well as the increasingly complex marketing mix. The reason why the Internet and digital channels [such as mobile] are so important, they touch the core of human values—the need to connect, the need to feel loved and the need to feel productive, which can be really difficult to do in real life.”
Last month, the first official Levi’s/Fader Fort application for iPhone and Android launched. While traditional television, print and out-of-home advertising is still integral to Levi’s marketing strategy, the brand is increasingly using digital channels such as mobile to complement and enhance that strategy. “As market becomes more fragmented, we want to have more control over our consumer experience, both online and at retail outlets,” Mr. Cohen-Szulc said. “Going global means you lose control of the dialog and you have to manage that dialog. “In the digital space, it’s not necessarily a controlled environment, so as a brand you have to lose a little bit of control to gain other advantages,” he said. New technologies and new consumer behavior is pushing marketing toward a tipping point, according to the Levi’s executive. “Consumers are in the driver’s seat more than ever, and they only care about what’s original, real and relevant to me,” Mr. Cohen-Szulc said. “The strategic role of each marketing mix element is changing by the minute. “We wanted to change course and eliminate stagnancy by being disruptive with our Go Forth campaign,” he said.
Even with the global economy on the decline, Anderson chose to take advantage of the company’s size and resources to boost brand image while competitors were doing less advertising. Jaime Cohen Szulic Chief Marketing Officer of Levi’s is embracing mobile media and moving the marketing strategy forward very quickly. The website in Singapore is a good example. He feels that courting the potential for consumers to be advocates and not just loyal is where the future will be made. “If you enact changes for the people, they will carry your brand,” he said. “It’s about moving from loyalty to advocacy. “Brand loyalty is very passive, but brand advocacy is about being active, not passive. .He believes that online advertising should be fun. Levi Strauss & Co. plans to build on traditional advertising campaigns by adding digital channels such as social media and mobile to the mix. At a conference in April of 2010, Szulc, who is also VP of Levi Strauss & Co. in San Francisco stated that the “important trends that are driving change include faster product lifecycles and challenging macro-economics, as well as the increasingly complex marketing mix. The reason why the Internet and digital channels [such as mobile] are so important, they touch the core of human values—the need to connect, the need to feel loved and the need to feel productive, which can be really difficult to do in real life.”
Last month, the first official Levi’s/Fader Fort application for iPhone and Android launched. While traditional television, print and out-of-home advertising is still integral to Levi’s marketing strategy, the brand is increasingly using digital channels such as mobile to complement and enhance that strategy. “As market becomes more fragmented, we want to have more control over our consumer experience, both online and at retail outlets,” Mr. Cohen-Szulc said. “Going global means you lose control of the dialog and you have to manage that dialog. “In the digital space, it’s not necessarily a controlled environment, so as a brand you have to lose a little bit of control to gain other advantages,” he said. New technologies and new consumer behavior is pushing marketing toward a tipping point, according to the Levi’s executive. “Consumers are in the driver’s seat more than ever, and they only care about what’s original, real and relevant to me,” Mr. Cohen-Szulc said. “The strategic role of each marketing mix element is changing by the minute. “We wanted to change course and eliminate stagnancy by being disruptive with our Go Forth campaign,” he said.
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