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Consumer behaviour - Case Study Example

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Consumer behaviour

Situational analysis on the company is conducted to determine the strengths, weaknesses, opportunities and threats which used as a basis of formulating the various alternative strategies for addressing the underlying issue. The best option is selected for the implementation and this option is cost effective and has significant favorable effects to the company. Problem statement Levi Strauss & Co. is a giant apparel company based in San Francisco and it is privately by the Levis for the last 147 years which has been marked by the years of success characterized with increased profits and the overall sale of its cloth wears. Levi Strauss is an all American brand and that its corporate image among the potential and the existing customers has a higher level of publicity. Therefore the goals and the objectives of this giant apparel cloth wear company for the last few years is to constantly sustain their increased sales and profitability, maintain its market share, consistently develop new products that is available to the existing and the emerging market segments through regular company research and development and finally is to consolidate its customer base by maintaining customers loyalty and satisfaction. Unfortunately Levi Strauss & Co in the recently over a period of time has become difficult in meeting these goals and objectives. Notably this trend has been attributed by the consumer changes in the cloth ware and apparel industry where there is frequent changes in fashion and designs thus affecting the changes and preference of the consumers across the entire market segment (Stamatiadis 2009). The key move that Levi Strauss & Co did not take keenly in during this period of fashion change and designs of the clothing wear in this industry is the failure to make changes according to the changes in the taste and preference of their existing customers thus contributing to Levi Strauss & Co being always seasons behind in terms of the emerging trends and designs hence their major competitors. More important is that they have not been able to sustain the market segment that comprises the young comprising of the under twenty five and the kids who have perceive that the Levi’s styles are too tight and they are suitable for the old generation thus resulting into the loss of the market share in which the younger generation has been Levi Strauss & Co major existing customers. One of the major setbacks is the failure to consolidate the younger generation who have been contributing more to their profits (Stamatiadis 2009). These emerging issues has resulted into the company realizing little success in its operations and the overall revenue generation and the loss of the customers and the reduced market share in the cloth wear industry, the changes in the consumer behavior in due to change in their taste and preference has resulted into their competitors such as JNCO, Old Navy and Kirkwear having an added advantage over them this resulting into the loss of market share from 31% to 17% despite increase in the market of jeans wear and the overall cloth wear in a span of three years. The implication of these problems to Levi Strauss & Co include tumbling sales due to the loss of market share and the existing customers, layoffs of the employees where they reduced the number of employees by 40% laying off over 15000 total number of employees, plant closings due to the reduced sales and the loss of t ...Show more

Summary

 (Consumer Behaviour) By Name Presented to Course Institution Name, Location Date Due Executive Summary This case study analysis studies and identifies the key issues that are recently affecting the success of Levi Strauss & Co. being a giant apparel company…
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