Levis-Gwg Case Study
Should LSC Take Back The GWG® Brand?
MEMORANDUM
Date: Aug 20th 2010
Subject: Recommendation: LSC to take back the brand GWG®
To: All Senior Executives
From: Supratim Ghosh
Levis’ Strauss Canada Holding An Ember : The GWG Brand®
Executive Summary
Over the past 4 years, Jack Spratt has not performed as per the given targets by LSC. The sales of the GWG® brand jeans and apparels has gone down in terms of market share. Only around 2% of the market share is with GWG® in 2000-2001 (Exhibit 1), while under the license of Jack Spratt. There has been no investment done by the licensee to revoke the image of the brand and its product. There have been no updates in fits and style over the past 4 years done by Jack Spratt. Even there has been no innovation in the marketing plan to promote the brand. The fear is if it continues this way, eventually the Brand will be run into the grounds.
With the rise of the Private Label and designer brands like The Gap, Calvin Klein, Tommy Hilfiger, Diesel, and Guess getting more and more popular, GWG® is still offering the same limited line of products that focuses to the segment of men by offering 4 fits, 4 finishes: 16 sizes with two different lengths. There has been no effort yet to popularize the women segment, where the competition is far ahead. No new marketing strategies such as improving the different customer-relation approach through advertisements can be seen. In today’s Jeans market, there has been revolution in getting new fits, cuts and designs, which is completely missing in GWG®. The private and designer label brands are more successful because these brands have been successful because of the styles they offer and the images they portray in advertising. They are more in touch with the attitude, behavior, and expectations of today's youth. GWG® is now termed as Jeans for the previous Generation or ‘Parent’s Jeans”
With the benefits of a lower price tag than most other brands, promoting new
MEMORANDUM
Date: Aug 20th 2010
Subject: Recommendation: LSC to take back the brand GWG®
To: All Senior Executives
From: Supratim Ghosh
Levis’ Strauss Canada Holding An Ember : The GWG Brand®
Executive Summary
Over the past 4 years, Jack Spratt has not performed as per the given targets by LSC. The sales of the GWG® brand jeans and apparels has gone down in terms of market share. Only around 2% of the market share is with GWG® in 2000-2001 (Exhibit 1), while under the license of Jack Spratt. There has been no investment done by the licensee to revoke the image of the brand and its product. There have been no updates in fits and style over the past 4 years done by Jack Spratt. Even there has been no innovation in the marketing plan to promote the brand. The fear is if it continues this way, eventually the Brand will be run into the grounds.
With the rise of the Private Label and designer brands like The Gap, Calvin Klein, Tommy Hilfiger, Diesel, and Guess getting more and more popular, GWG® is still offering the same limited line of products that focuses to the segment of men by offering 4 fits, 4 finishes: 16 sizes with two different lengths. There has been no effort yet to popularize the women segment, where the competition is far ahead. No new marketing strategies such as improving the different customer-relation approach through advertisements can be seen. In today’s Jeans market, there has been revolution in getting new fits, cuts and designs, which is completely missing in GWG®. The private and designer label brands are more successful because these brands have been successful because of the styles they offer and the images they portray in advertising. They are more in touch with the attitude, behavior, and expectations of today's youth. GWG® is now termed as Jeans for the previous Generation or ‘Parent’s Jeans”
With the benefits of a lower price tag than most other brands, promoting new