Harvard Case - Levi Strauss Canada Holding an Ember: The GWG (R) Brand
"Levi Strauss Canada Holding an Ember: The GWG (R) Brand" Harvard business case study is written by Michael R. Pearce, Ken Mark, Jordan Mitchell. It deals with the challenges in the field of Marketing. The case study is 17 page(s) long and it was first published on : Apr 28, 2004
At Fern Fort University, we recommend that Levi Strauss Canada (LSC) embrace the GWG(R) brand as a strategic opportunity to expand its market reach, tap into the growing sustainable fashion market, and strengthen its brand image. LSC should leverage its existing strengths in brand management, distribution, and marketing to launch a comprehensive strategy focused on product development, targeted marketing, and digital engagement.
2. Background
This case study focuses on Levi Strauss Canada's (LSC) decision to launch the GWG(R) brand, a line of sustainable denim made with recycled materials. The GWG(R) brand represents an attempt by LSC to tap into the growing consumer demand for sustainable and ethically produced products. The case highlights the challenges LSC faces in launching a new brand, including the need for effective marketing, brand positioning, and distribution strategies.
The main protagonists of the case study are:
- Levi Strauss Canada (LSC): The Canadian subsidiary of Levi Strauss & Co., a global leader in denim apparel.
- GWG(R): The new sustainable denim brand launched by LSC.
- Consumers: The target audience for the GWG(R) brand, who are increasingly interested in sustainable and ethical fashion.
3. Analysis of the Case Study
This case study can be analyzed using a variety of frameworks, including:
1. SWOT Analysis:
- Strengths: LSC possesses a strong brand reputation, established distribution channels, and a loyal customer base.
- Weaknesses: LSC faces challenges in communicating the sustainability story of GWG(R) effectively and differentiating it from competitors.
- Opportunities: The growing demand for sustainable fashion presents a significant market opportunity for GWG(R).
- Threats: The presence of established competitors in the sustainable denim market poses a threat to GWG(R)'s success.
2. Marketing Mix (4Ps):
- Product: GWG(R) offers a unique selling proposition of sustainable denim made with recycled materials. LSC should focus on product development to expand the GWG(R) line with diverse styles and fits to appeal to a wider audience.
- Price: LSC should adopt a premium pricing strategy for GWG(R) to reflect its sustainable production and high quality. However, they should also consider offering a range of price points to cater to different consumer segments.
- Place: LSC should leverage its existing distribution channels, including retail stores and online platforms, to make GWG(R) readily available to consumers. They should also explore partnerships with sustainable fashion retailers and online marketplaces to expand reach.
- Promotion: LSC should implement a multi-faceted marketing strategy that leverages digital marketing, social media, influencer partnerships, and public relations to raise awareness and build brand equity for GWG(R).
3. Consumer Behavior Analysis:
- LSC needs to understand the motivations and concerns of consumers interested in sustainable fashion. This includes factors like environmental consciousness, ethical sourcing, and price sensitivity.
- LSC should leverage market research to understand the target audience's preferences, purchase behavior, and media consumption habits.
4. Competitive Analysis:
- LSC should identify and analyze key competitors in the sustainable denim market, including established brands and emerging start-ups.
- LSC should assess competitors' strengths, weaknesses, pricing strategies, and marketing approaches to inform their own competitive strategy.
5. Brand Positioning:
- LSC should clearly define GWG(R)'s brand positioning, highlighting its sustainability values, quality, and unique selling proposition.
- LSC should develop a consistent brand message that resonates with the target audience and differentiates GWG(R) from competitors.
4. Recommendations
1. Product Development:
- LSC should invest in product development to expand the GWG(R) line with a wider range of styles, fits, and washes.
- LSC should explore innovative materials and technologies to further enhance the sustainability of GWG(R) products.
- LSC should consider offering a limited-edition collection featuring collaborations with sustainable fashion designers and influencers.
2. Marketing Strategy:
- Target Market Segmentation: LSC should segment the target market based on demographics, psychographics, and purchase behavior.
- Digital Marketing: LSC should leverage digital marketing channels, including social media, search engine optimization (SEO), and online advertising, to reach the target audience.
- Content Marketing: LSC should create engaging content that showcases the sustainability story of GWG(R), highlights the benefits of sustainable fashion, and builds brand awareness.
- Influencer Marketing: LSC should partner with relevant influencers in the fashion and sustainability space to promote GWG(R) to their followers.
- Public Relations: LSC should engage in public relations activities to generate positive media coverage and build brand credibility.
- Events and Partnerships: LSC should participate in sustainable fashion events and partner with organizations promoting sustainability to increase visibility and reach new customers.
3. Distribution Strategy:
- LSC should leverage its existing retail network to make GWG(R) available to consumers.
- LSC should explore partnerships with sustainable fashion retailers and online marketplaces to expand reach.
- LSC should consider offering direct-to-consumer sales through its website and social media platforms.
4. Pricing Strategy:
- LSC should adopt a premium pricing strategy for GWG(R) to reflect its sustainable production and high quality.
- LSC should consider offering a range of price points to cater to different consumer segments.
- LSC should communicate the value proposition of GWG(R) clearly to justify its pricing.
5. Brand Management:
- LSC should develop a comprehensive brand management strategy that ensures consistency in brand messaging, product quality, and customer experience.
- LSC should monitor customer feedback and adapt its strategy based on market trends and consumer preferences.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: LSC's core competencies in brand management, distribution, and marketing align with the GWG(R) brand launch. The brand also aligns with LSC's commitment to sustainability and its mission to create positive social and environmental impact.
- External customers and internal clients: The recommendations consider the needs and preferences of consumers interested in sustainable fashion, as well as the expectations of LSC's internal stakeholders.
- Competitors: The recommendations take into account the competitive landscape of the sustainable denim market and aim to differentiate GWG(R) from competitors.
- Attractiveness: The recommendations are based on the potential for GWG(R) to generate significant revenue and contribute to LSC's overall growth.
6. Conclusion
By implementing these recommendations, LSC can successfully launch the GWG(R) brand and establish itself as a leader in the sustainable denim market. The brand has the potential to attract a new generation of environmentally conscious consumers and contribute to LSC's long-term growth and sustainability goals.
7. Discussion
Alternatives not selected:
- Low-cost strategy: LSC could have opted for a low-cost strategy for GWG(R), focusing on mass production and lower prices. However, this approach would likely compromise the brand's sustainability credentials and could damage LSC's premium brand image.
- Limited distribution: LSC could have chosen to launch GWG(R) only in select markets or through a limited number of channels. This approach would have limited the brand's reach and potential for growth.
Risks and key assumptions:
- Consumer acceptance: A key risk is that consumers may not be willing to pay a premium for sustainable denim, or they may not be convinced of the brand's sustainability credentials.
- Competition: The market for sustainable denim is becoming increasingly competitive, with established brands and start-ups vying for market share.
- Supply chain challenges: Sourcing sustainable materials and ensuring ethical production practices can pose challenges for LSC's supply chain.
Options Grid:
| Option | Advantages | Disadvantages |
|---|---|---|
| Premium pricing | Higher margins, strong brand positioning | Potential for lower sales volume, may alienate price-sensitive consumers |
| Mass market strategy | Higher sales volume, potential for lower prices | May compromise sustainability credentials, could dilute brand image |
| Limited distribution | Lower marketing costs, focused targeting | Limited reach, potential for missed opportunities |
| Extensive distribution | Wider reach, greater market penetration | Higher marketing costs, potential for cannibalization of existing brands |
8. Next Steps
Timeline:
- Month 1: Conduct market research and develop a comprehensive marketing plan.
- Month 2: Finalize product development and pricing strategy.
- Month 3: Launch GWG(R) in select markets and online channels.
- Month 4-6: Monitor customer feedback and adapt marketing strategy based on performance.
- Month 7-12: Expand distribution and marketing efforts to reach a wider audience.
Key milestones:
- Launch of GWG(R) website and social media channels.
- First GWG(R) product launch event.
- Partnership with a sustainable fashion retailer or online marketplace.
- First influencer campaign for GWG(R).
By taking a proactive and strategic approach, LSC can successfully launch the GWG(R) brand and capitalize on the growing demand for sustainable fashion. The brand has the potential to become a significant contributor to LSC's overall growth and sustainability goals.
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Case Description
The director of marketing for Levi Strauss Canada needs to decide the fate of the GWG brand, a fallen giant in the Canadian jeans market. For the last three years, GWG has been licensed to a small manufacturer, who has failed to meet the requirements in the license agreement. Although the director wants to use some of the latent brand equity in GWG, Levi's and Dockers brands come first and she cannot divert marketing dollars toward the brand's revival. Also, she must be careful to manage her small but powerful portfolio of brands in the five main channels without cannibalizing the already declining volumes of the Levi's brand.
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