dockers case study
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CREATING A SUB-BRAND
Stephanie Cafasso, Stephanie DeBruin, Shaynna Cutler, Evan
Sauve,Will Jones
HISTORYLevi Strauss & Co.
Originated in 1849 to sell durable pants to gold
miners
1890: “501 Jeans” evolved into an American icon
Levi’s brand name became synonymous with
jeans.
“We had
diversified
too much…”
1980-1982: Sales fell 10% and net income dropped 76%
Decline in jeans purchases because the baby boomers were aging
Slacks sales increased and companies were relaxing their dress codes
BOB HAASFORMER
CHAIRMAN OF LEVI
STRAUSS & CO.
COMBINES STYLE, VERSATILITY, & COMFORT
1986
A brand for both professional and leisure activities.
More contemporary, less conservative, and more casual than other leading slacks.
By 1993, Dockers was a $1 billion brand
NICE PANTS
Wrinkle-free look-a-like brand led to Dockers’ first drop in sales
Dockers was losing existing customers and failing to attract new customers
To counteract this: Dockers launched its wrinkle-free and “nice pants” campaign
The sexed-up campaign led to a reversal in
sales decline.
Sales went up by 21%
Dockers gained 26% of the khaki market share
Despite sales gains, Dockers still wanted to appeal to younger consumers.
Dockers modified their “Nice Pants” campaign.
SALES DROPPED
AGAIN
1998-2004DIVERSIFICATIONDockers for Her
Dockers Recode
Dockers Mobile Pant
Dockers for Girls, Boys, Toddlers, and
Infants
Dockers Travel
Dockers Headwear, Gloves, and Scarves
Dockers Tour (golf)
Dockers Hi-Tech
Dockers was going to sell the company but
didn’t.
Dockers installed a new president to the brand: John Goodman
Goodman established a new logo, a new
tagline, and a reorganized men’s
line.
2004: 20% sales decline
FOUR WEARING OCCASIONSwork • weekend • dress •
golf“Head-to-toe lifestyle brand”
Makes consumers aware of an expanded range of product lines
Sales held flat in 2005, but there was a higher profit, meaning higher margins (more expensive
products were being sold)
DOCKERS IN 2011
SUMMARY There was a gap in the
market for “new casuals”/slacks and Levi
Strauss & Co. took advantage of this opportunity.
Dockers felt that they had to constantly restructure their brand to keep up with the times and with changing
consumer tastes.
RECOMMENDATIONS
Instead of expanding to new markets (home, travel, gloves, etc…), Dockers needs to focus on
their already established target market.
Dockers is on the right track.
“We have taken the category we owned and reinvented it for
today.”
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