Levi Straus Japan

1211 Words5 Pages
Key Issues The jean industry in Japan has seen a downturn and each company in this space must react in order to maximize profitability. In 1992 sales rose but net income dropped for both industry-wide and for Levis Strauss Japan (LSJ) (Carducci, et al, 2006, p. 16). LSJ must begin to change its marketing strategy in order to battle the new environmental threats it will face as each company looks to maximize profitability and grow market share. The most pressing environmental threats needing to be addressed are: channel distribution, emerging markets and price competition. In order for Levis Strauss Japan to continue to be the market leader these three environmental factors must be met head on with focus. Recommendations Focusing on these three, most impactful, environmental threats, LSJ will be able to hold a leadership position in the Japanese jean market. First, LSJ must expand distribution in the growing large-scale suburban jean shops such as Mac House and From USA (Carducci, Horikawa & Montgomery, 2006, p. 1). With approximately half the distribution, by store, of Edwin, it is imperative to secure themselves as the leader in the jean specialty channel (Carducci, et al, 2006, p.11). Secondly, LSJ must begin to focus on the growing women’s and high-end jean markets. Both of these markets have shown growth and opportunity in the early 1990’s and should be considered major opportunities going forward. Lastly, LSJ should begin developing a tiered product pricing/segmentation strategy to insure high end products stay coveted, but begin to take some market share away from the lower-end brands. This can be done by introducing the highly successful, lower-end Levis Signature line to the market as well as continuing to follow trends like the “revival jeans” trends from 1990 (Carducci, et al, 2006, p. 5). Analysis Traditional Marketing Strategy LSJ does a fantastic

More about Levi Straus Japan

Open Document