Levi Strauss
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\J CLD U
Lerri Strauss & Co.
Channel Strategy: Mass fo Class
In November:oo:. Levi Strauss & Conrpany (LS & Co.) erinounced that tlre comp:lfry rvas plannin.g to roll out a land o f casual wear lbr the mass retail channel. LS &
Co.'g nerv brand of clothing. ca}led Levi Strauss Sirrraturel'r{ (see [xhibil r), rvhich is estimated to se]l for abor-rt
$:5 a pair, wor.rld be available at all 3.ooo Wai-Mart stores throughout the LI.S. be$inning in,fu1v zoo3.
The Levr Strauss Signature brand is being positioned as tire thild l.lrancl in fhe company's portiblio accompanving j! the Levi's ! and Dockers brands. In addition 1o tlre Sig'natuie brand. Levi Strauss & Co. al.so rolled out a new line of jeans underr the Levi's brand, calleil Tlpe rrM. in Januarl
':oo3. Qpe rrLi jeans, to l:e sold in mid and high tier' deparlrnent slores a1ld chain stores for between $35 and
$95. are a more comniercial version of Levi's'it'Red jeans, lvhich sell in irr-rrrr,v department stores such as Neinlarr
n.ew b
Exhibit I
Levi Strauss SignaturerM Brand Logo
Malclrs aud upscale ayrparel stores such as Barne,y's 1.or over $r5o (sr:e Exhibit,;).
LS & Co.'s nerv three-tier channel strategr conies amid several years of deelin.ing profit and rnalket sh.are due to the explosior.t of cornpetition in the jeans marker.. espccialiy from jean designers such as C:rlvin l{eln. as rvell as the Cap's own brand and lCPe nne.y"sA:'izona brand
LS & Co."s sales peaked in r996. exceeding $7 bililon. but try zooi had declined to $4..:5 billion.'The thrrc,ricr channel strateey clearlv involves tradi ng borh dorvn and up market from l,S & Co.'s rraciitional mirldle rnarket scg
[ient: it now includes high-end image stores as well mass retail and discoLrnt str:re channe
as
1s.
The mass channel, dominated b"y dist:ounters \X/alVlar-t and Target, is the largest and lastest-crcrw-ing retail chamrel in the counl.ry. More tiran 16o million people in tlre U.S. shop in the mass channel. and over 3o
\J CLD U
Lerri Strauss & Co.
Channel Strategy: Mass fo Class
In November:oo:. Levi Strauss & Conrpany (LS & Co.) erinounced that tlre comp:lfry rvas plannin.g to roll out a land o f casual wear lbr the mass retail channel. LS &
Co.'g nerv brand of clothing. ca}led Levi Strauss Sirrraturel'r{ (see [xhibil r), rvhich is estimated to se]l for abor-rt
$:5 a pair, wor.rld be available at all 3.ooo Wai-Mart stores throughout the LI.S. be$inning in,fu1v zoo3.
The Levr Strauss Signature brand is being positioned as tire thild l.lrancl in fhe company's portiblio accompanving j! the Levi's ! and Dockers brands. In addition 1o tlre Sig'natuie brand. Levi Strauss & Co. al.so rolled out a new line of jeans underr the Levi's brand, calleil Tlpe rrM. in Januarl
':oo3. Qpe rrLi jeans, to l:e sold in mid and high tier' deparlrnent slores a1ld chain stores for between $35 and
$95. are a more comniercial version of Levi's'it'Red jeans, lvhich sell in irr-rrrr,v department stores such as Neinlarr
n.ew b
Exhibit I
Levi Strauss SignaturerM Brand Logo
Malclrs aud upscale ayrparel stores such as Barne,y's 1.or over $r5o (sr:e Exhibit,;).
LS & Co.'s nerv three-tier channel strategr conies amid several years of deelin.ing profit and rnalket sh.are due to the explosior.t of cornpetition in the jeans marker.. espccialiy from jean designers such as C:rlvin l{eln. as rvell as the Cap's own brand and lCPe nne.y"sA:'izona brand
LS & Co."s sales peaked in r996. exceeding $7 bililon. but try zooi had declined to $4..:5 billion.'The thrrc,ricr channel strateey clearlv involves tradi ng borh dorvn and up market from l,S & Co.'s rraciitional mirldle rnarket scg
[ient: it now includes high-end image stores as well mass retail and discoLrnt str:re channe
as
1s.
The mass channel, dominated b"y dist:ounters \X/alVlar-t and Target, is the largest and lastest-crcrw-ing retail chamrel in the counl.ry. More tiran 16o million people in tlre U.S. shop in the mass channel. and over 3o