CONSUMER BEHAVIOR’S MARKETING ANALYSIS: LEVI’S CASE STUDYSUVI TAN ANTARA PUBLIC RELATIONS 2 – 2010 009 2010 00014 PRESIDENT UNIVERSITY Levi’s view of building brands in one part of the world is the same as how Levi’s building its brands in other parts. However. as one of Levi’s values is rebellious. has managed to cope with many obstacles in promoting its products around the world. The objectives of Levi’s researches are to determine the proper marketing strategy to be implemented in Asia. there is nothing in this world that is really certain. Sometimes Levi’s needs to struggle more because Levi’s never really follow the current fashion. and very anxious about academic stuffs because the parents set high expectations from them. and whether Levi’s needs to adopt some local grounds in particular countries. Levis’ found that Asian youth is worried and stressed. This case study examines Levi’s effort of global brand strategy and how it is implemented in its marketing strategy in Asia. Levi’s keeps conducting its marketing research every year because even for Levi’s. Levi’s succeed in reasoning that it is confident to go against the fashion wave because Levi’s believe the trends will be back again. Levi’s 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. Levi’s only apply one principle. Levi’s has implemented various marketing strategy in order to succeeding its effort to become a global brand. . Levi’s has done some research in Asia to know whether the youth psychographics in Asia is different from elsewhere in the world. However. Levi’s also found some obstacles regarding its efforts. and to inject its values to Asian youth. as a famous global brand. However. Levi’s wants to make sure the positioning of its brand is derived.BACKGROUND Levi Strauss and Co. 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. marketing mix elements. The strategy provides decisions and direction regarding variables such as the segmentation of the market. A marketing strategy is usually an integral part of a business strategy that provides broad direction to all functions3. partners. and positioning. and exchanging offerings that have value for customers. Marketing Strategy A statement (implicit or explicit) of how a brand or product line will achieve its objectives. marketing strategy like market segmentation is not possible to be done without a well conduct market research. In fact. delivering. present and potential customers for the product or service. targeting. communicating. analyzing and interpreting information about a market. and the particular competitors you face2. location and needs of your business's target market. . clients. set of institutions. positioning. 2007)1. and society at large (Approved by AMA Boards of Director. In satisfying the customers and fulfilling their needs.THEORETICAL FRAMEWORK Marketing The definition of marketing based on American Marketing Association is the activity. and expenditures. Marketing Research The process of gathering. research into the characteristics. and processes for creating. the industry as a whole. identification of the target market. and about the past. Marketing research is important to be done for it provides relevant data to help solve marketing challenges that business will face. spending habits. about a product or service to be offered for sale in that market. A brand may identify one item. as well as external audiences. 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. Market targeting is the selection of one or more of the segments identified for the company to pursue. so the writing will not be out of topic. avenues. staff and students. data driven method of communicating with the customers. a family of items. or any other feature that identifies one seller's good or service as distinct from those of other sellers. If used for the firm as a whole. term. These build an emotional connection with faculty. symbol. The legal term for brand is trademark. Positioning refers to the development of a distinct image for the product or service in the mind of the consumer. or all items of that seller. These theoretical frameworks will be very helpful to border the making of Levi’s case study analysis. and influence how stakeholders perceive and interact with the company6. the preferred term is trade name5. . design. functions and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost7.Market segmentation is the process of dividing a market into subsets of consumers with common needs or characteristics. Brand values are the core values represented by a brand. Integrated Marketing Communication Integrated Marketing Communications (IMC) is defined as customer centric. 2010)4. IMC is the coordination and integration of all marketing communication tools. Brand & Brand Values Brand is a name. and culture surround Asian youth. Levi’s primary market segment is youth with a base of 15-19-year-old males. Asian youth is not always stressful and worried. Levi’s cannot just use the same segment in Asia because demographically and psychographically. Levi’s found that belonging and responsibilities to “the group” overwhelm personal ambitions where the expectation from parents. and even shame that might follow failure. There is a sense of youth identity that they are the inheritors of the new world. They also have their own aspirations. America. . not having to be heterosexual. and Asia is different. However. Levi’s set different market segment based on its research. That’s why Levi’s conducted market research before it began to sell its product in Asia. There are also feelings of optimism in their mind. Levi’s has found some interesting facts about psychographic condition of Asian youth. teachers.ANALYSIS Levi’s is a global famous brand in jeans. On the other hand. not being restricted to marrying within the race. including Europe and Asia. though it is more repressed in Asia. Some of the aspirational values from Asian youth are actually similar with other countries around the world. and being allowed to be themselves more. so does Levi’s. Asian youth feel anxious about disappointment. There have been so many countries selling this brand to youth people as the main market segment of Levi’s. In market research. youth in Europe. Yet. disapproval. Therefore. Levi’s still needs to know whether it needs to adopt with culture of every country that will be injected with Levi’s products. like the independence of living by themselves and not their parents. marketers should know first about their target segments demographically and psychographically. In order to choose the best marketing strategy to be implemented in Asia. By all of these characteristics and rational associations. and sets trends. high quality. That’s why. Reliable. Simple.” Through these characteristics and rational associations also. self-confident. But. Individual.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. original jeans. it is such a challenge for Levi’s to introduce and inject its brand values and personality to Asian youth. Sexy. These characteristics of Levi’s that wants to be introduced to youth represent aspirational way of life for youth around the world. Youthful. Levi’s tries to capture the problem of Asian youth and provides solutions through its values brought by Levi’s products. Masculine. Levi’s personality is composed by eight characteristics of values that picture Levi’s the best: Original. Strong. and American. Levi’s also has brand rational associations in addition of the brand personality: Original. cool. . Levi’s 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. Levi’s created brand positioning statement as “The original and definitive American jeans (rational) that celebrates all the great things about being young (emotional). 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. research has found that Levi’s in Asian youth views are American. and Long-lasting. Rebellious. Free. Based on Global Brand Equity Study. Levi’s also put events for them on an invitation-only basis. Levi’s stays true to its brand personality. Levi’s has certainly done well in Asia among the 15-29-year-olds. although Levi’s packed it with different and creative portrays. followed by Early Adopters. that’s why.Levi’s also agrees that peers and role models will influence many people who adore them. for example. the first thing Levi’s did was to re-establish and reconfirm the brand values because it needs to make adjustments for local circumstances and condition in Asia. so that over time the audience is exposed to all of them. and adjusting the words the company uses to be similar with words that the opinion leaders use. is not really acceptable in Japan. with the opinion leaders take place at the top of pyramid. Levi’s makes adjustment in its values and rotate them carefully in an integrated marketing communications strategy. Late Adopters. and finally Mass Market. When Levi’s wants to enter Asian market. That’s why Levi’s played down rebellion value in Japan. and adapt to Asian culture to be approved in Asian market. Millward Brown International. In catching the heart of opinion leaders as its segment. The value of rebellion. as a recent brand research . Levi’s’ targeting hierarchy is drawn like a pyramid. The picture of the targeting hierarchy is as follows: No matter when and where. sexy. that having a vision and mission for the brand is vital. youthful. fits. First. Even though Levi’s has been accepted in many countries. Levi’s strategy has never been to follow the trends in the words. Levi’s observed that the global demand has shifting towards new fabrics. Its value is to sets the trends. Second. and sets the trends. However. creative execution must reflect the brand personality and desired consumer associations. Before executing marketing strategy to a particular market. Levi’s takes lessons from its researches. Levi’s also knows that the same principles apply to building brands in Asia as anywhere else around the world. and will have more appeal than ever. But. The traditional denim jeans products that sold by Levi’s is slowly losing its appeal in consumer’s sight. and finishes. it will be popular again in the future. it needs to have different approach to reach Asian market. know the roots of problems to understand the needs. Eventually. research is very important in marketing to understand how and why customers tastes are changing over time and what that means for the brands. Levi’s apparently holds the biggest appeal in Asian region. The market demand will always change over time. That’s why. Levi’s’ positioning will always has classic status. If an item is popular. and the third. Currently.shows that Levi’s’ current position in brand measure ranked 1st in quality. cool. Levi’s success never guarantees the safety of its products in the future. companies must generate consumer insight. . Levi’s believe that the fashion market is cycling. Levi’s decided to create a portfolio of brands and sub-brands. companies need to understand social background of every market. Research makes the marketing effort easier by providing relevant data to be analyzed and to decide the marketing strategy to be applied. Levi’s needs different approach to reach Asian market. and how is the behavior of Asian. Levi’s as one of many famous global brand in the world also conducted so many research before implementing its marketing strategies. When Levi’s wants to enter Asian market. marketing research is really important to be conducted. Levi’s needs to know first the demographic and psychographic circumstances in Asia. Levi’s is able to create marketing strategy starting from the segmentation. After understanding the condition of its market. Not all Asians can accept brand values and personality brought by Levi’s.CONCLUSION Whatever the companies are. and positioning. even having the biggest brand appeal in Asia than in other continents. . After having well-conducted research. Levi’s succeeded in entering Asian market. It is proven by the effort of Levi’s to inspire Asian youth to be more independent and self-confident. Marketing research gives many beneficial for the companies to understand the condition if companies’ target markets before companies decide to enter particular market. It is necessary because even though the strategy is not really different from other countries. Slowly but sure. companies are able to decide the most proper marketing strategy to be implemented. not always follow the traditional rules by Asian. targeting. pp.com/AboutAMA/Pages/DefinitionofMarke ting.G.. L. Baack. L. (2010). Promotion.aspx 2. . http://www.aspx? dLetter=M 4.marketingpower.marketingpower. http://www. Clow.marketingpower. Tenth Edition. 9–10. Consumer Behavior.entrepreneur.com/_layouts/Dictionary. http://commguide. Pearson Education. Donald (2007). 5. Schiffman.asu.com/_layouts/Dictionary. http://www. & Kanuk.REFERENCES 1.L.edu/brand/values 7.aspx? dLetter=B 6. New York: Pearson Education International. Kenneth E.com/encyclopedia/term/82436. http://www. Integrated Advertising. and Marketing Communications 3rd edition.html 3.