Gallo Rice Essay

748 Words3 Pages
Case Analysis#2 Levi Strauss Japan K.K. Situation: Mr. A. John Chappell, president and representative director of Levi Strauss Japan K.K(LSJ) was concerned about the market shrinkage of the company's product and distribution strategy. He was worried about what new marketing strategies he should implement for the improvement of the market share. Problem A: As Levi's market share decreased significantly, the company planned to increase the number of retail outlet stores in Japan. But Mr. A. John Chappell was worried that increasing the retail outlets might lead to a change in the pricing strategy and might have to decrease the prices by discounting the products. Analysis: LSJ spent many years in improving a branded product image that helped the company in taking market leader position in Japan. Japan’s jeans market is changing gradually: the market is going down, competition is growing, and undergoing structural changes in the distribution channel. The company preferred being selective on retail outlets and sales agents. The distribution channels for the company were direct sales by sales personnel and whole sale distribution by sales agencies. However, Company increased the number of stores in suburbs, but this change in distribution is not as aggressive as it competitors. Edwin, which is one of its competitor had pursued distribution that has twice as many stores as LSJ. Recommendations: Because of the market contraction, it is difficult for Levi's to improve its market share with its high and undiscounted product price and narrow distribution. Moreover, company is facing a high competition from competitors with their increased distribution channels. So it is recommended for Levi's to implement a new pricing strategy and also to increase number of retail stores. The new pricing strategy would include reducing prices, giving gift coupons and allowing
Open Document