Why does a product Fail
I would like to highlight the case of Levi’s Type One Jeans
BACKGROUND: Levi’s is one of largest denim jeans company in the world with product lines Levi’s,
Dockers and Levi Strauss Signature brand. It enjoyed monopoly in the jean wear market for almost a century – 1853 to 1960s until new product lines from Wrangler, Lee, Gucci, Diesel and many more started taking over Levi’s share in the market and posing a threat to the comfortable fitting, long lasting, casual wear blue jeans. By early 1990s, Levi’s was struggling to keep its presence in the market.
PRODUCT: Levi’s Type One Jeans. In 2002-03, the company launched this new product along with others like Silver Tab and Engineered Jeans. It was a typical example of style changes in new product launch category meant for the “early-adopters” market segment at a very reasonable price. However it met with a steep fall. To understand better, I will refer to Kotler’s product strategy.
Kotler suggests that a product should be viewed at three levels
Augmented product
•Guarrantee
•After-sales servicing
Total product
•Branding
•Packaging
•Features
Core product
•la Raison d'etre or Why is the product in existence
If we look at the three levels, Levi’s Type one jeans or Silver Tab, both failed at the first level itself: la
Raison d'etre. The new set of jeans had nothing that compelled people to buy. In other words, “ no major point of difference” from its existing style. The Type One jeans showcased oversized buttons, accentuated stitching, the horseback patch and the red tab on the back pocket. How innovative is that when you are facing real stiff competition? Add to it, little market attractiveness when compared to other brands popping up with new styles and textures. When it came to branding (2nd level), Levi’s failed once again as the advertisement (Stampede) was a big flop and pushed people away. The right marketing mix was missing. Finally, the product quality was not helping
BACKGROUND: Levi’s is one of largest denim jeans company in the world with product lines Levi’s,
Dockers and Levi Strauss Signature brand. It enjoyed monopoly in the jean wear market for almost a century – 1853 to 1960s until new product lines from Wrangler, Lee, Gucci, Diesel and many more started taking over Levi’s share in the market and posing a threat to the comfortable fitting, long lasting, casual wear blue jeans. By early 1990s, Levi’s was struggling to keep its presence in the market.
PRODUCT: Levi’s Type One Jeans. In 2002-03, the company launched this new product along with others like Silver Tab and Engineered Jeans. It was a typical example of style changes in new product launch category meant for the “early-adopters” market segment at a very reasonable price. However it met with a steep fall. To understand better, I will refer to Kotler’s product strategy.
Kotler suggests that a product should be viewed at three levels
Augmented product
•Guarrantee
•After-sales servicing
Total product
•Branding
•Packaging
•Features
Core product
•la Raison d'etre or Why is the product in existence
If we look at the three levels, Levi’s Type one jeans or Silver Tab, both failed at the first level itself: la
Raison d'etre. The new set of jeans had nothing that compelled people to buy. In other words, “ no major point of difference” from its existing style. The Type One jeans showcased oversized buttons, accentuated stitching, the horseback patch and the red tab on the back pocket. How innovative is that when you are facing real stiff competition? Add to it, little market attractiveness when compared to other brands popping up with new styles and textures. When it came to branding (2nd level), Levi’s failed once again as the advertisement (Stampede) was a big flop and pushed people away. The right marketing mix was missing. Finally, the product quality was not helping