Levi Strauss Canada Holding an Ember: The GWG® Brand

Levi Strauss Canada Holding an Ember: The GWG® Brand

 

Introduction

GWG® was considered as the first jeans’ brand that was founded in Edmonton, Alberta, in 1911 and dominated the Canadian landscape, until the late 1960s when the competition with the Levi’s® jeans started. In 1982, the two companies merged, when both of the brands were already selling more or less 8 million units of jeans and other apparel products. Levi’s® was the first brand that had been recalled by the customers in top in mind, and considered as the leader in the men’s jeans market, owning 16.1%, while GWG® has 1%.

Due to the popularity of jeans, there are other companies that have entered the market, thus created huge competition. The major competitors of the two companies are: Wrangler, Rustler, Nevada, Rockland, Originals, Cherokee and Truly, Reitman’s, Cotton Ginny’s, Denver Hayes, Bluenotes, The Gap, Silver, Guess, Tommy Hilfiger, Polo Ralph Lauren, Calvin Klein and Diesel.

Current Status of GWG® Brand

GWG® offers limited line of products that focuses to the segment of men by offering 4 fits, 4 finishes: stonewash, stonebleach, rinse and black, and 16 sizes from 28 waist to 42 waist with two different lengths.

From the limited consumer research, it had been found out that GWG® was considered by the customers as a brand with leading attributes such as having a high quality and comfortable to wear, and most of all it has a reasonable price, or cheaper compare to other brands.

The sales of the company had increased by 22.22 % by 1999 to 2001; from 180, 000 units in 1999, 200,000 units in 2000, and 220,000 units of 2001. The sales had been expanded by selling through an independent commissioned sales force of 15 people, where in the price ranged from to , for wholesale and .50 for retailer. The company had a listed price of .99, but because, most of the jeans in the retail industry were sold in discount, the price fall to per jean.

Most of the promotional efforts and programs were based on early payment discounts and returns as well as allowances that are equal to 3%. Regarding the licensee agreement of the company to Levi Strauss Canada, in 1998, 8% of its net wholesale goes to Levi.

Issues

            The main problem in the scenario focuses on the revival of the product due to its low improving sale. But with accordance to the data and sales growth, it can be said that it will be important to revive the product, by making it a sub-brand of Levi. However, there are different actions that must be done in order to make sure that the product will meet the demand of the difficult and challenging customers.

            This can be done by planning and implementing new marketing strategies, such as improving the different customer-relation approach such as the advertisement. This can be done by focusing on the demand of the male market, particularly, to those young people who are adventurous. It will also be important to focus on the additional line of products or types of products that will cater to the needs of the customers from different segments and categories.

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