1. What are the key success factors (KSF) in the Japanese marketplace? 8 marks.

The key success factors(KSFs) in the Japanese marketplace is that Levi’s have
successfully implemented the localization strategy.

As Japan is such a country that the consumption of the world’s luxury goods maintain
in the first place.Many brands in Japan have a strong tendency. So if one product want
to sell successfully in Japan, it must modify to meet the Japanese local needs and
preferences. And they don’t mind whether the price is expensive or not.
Hence Levi’s success is also due to the localization strategy. Levi’s is a great mix with
the Japanese environment.

Levi’s opened a corporation under a wholly owned subsidiary in Japan at the time
when Levi’s entrance was considered impossible. They make the products to meet the
Japanese people’s body size because the Asian people are more fitter than Americans.
And all the products are produced by Japanese people. Furthermore, Levi’s products
in Japanese was taking in high-end line which attract a lot of fashion people to buy.

The Bicentennial in the mid 1970s created a large demand for American goods and
American Culture.
During the mid-1980’s jeans grew because of the changing trends or Japanese
adolescence. Casual wear and leisure time became more popular during this time
period.
The Decade after this the market for jeans shrunk.

Levi Strauss moved into Japan in 1991

Japan was already a competitive market with brands like Edwin, Big John, Bobson,
Wrangler and Lee already there
Denim in seen as premium fashion item

In the beginning Levi Strauss used specialty stores to sell merchandise.

Because of the premium image denim was priced significantly higher than it was in
the United States.

By selling in small urban specialty stores Levi Strauss had an image of high quality .
All other brands were sold in specialty stores as well so Levi Strauss never lost when
compared with their competition.
Later National Chains began to pop up in Japan.
Levi Strauss would begin to sell to them and leave the specialty stores.
Selling in the national chains damaged the perception of quality but allowed for better
control of inventory and quicker response times.
Also gave Levi Strauss the ability to sell a full line of products instead of just Jeans.

2. To what extent do the Levi Strauss’s FSA’s and CSA’s match the KSFs? How
has Levi’s been able to leverage its country-of-origin to become a leading brand?
Can other American jeans do the same? 8 marks.

Levi’s is a history of 100 years old brand. The brand can be crucial in the FSAs
occupy the position. The Japan market and the Unites States market have essential
difference. They are not only fanatical pursuit of the West, but also have trandional
oriental culture of the East.

As a developed country of the East, Japanese market have two attractions for the
United States in the CSAs strategy. There are Market potential and Potential market
segmentation.

Over all, the expansion strategy of Levi’s not only take into account of their own
advantages, but also make full use of Japan’s cultural environment. Finally achieved
the desired objectives of the KSF’s.

Levi’s is relying on the interaction between FSAs and CSAs to match the
development of KSF’s. That is why Levi’s can become the leader of the jeans brand in
Japan.

Firstly, Market potential: Japan belong to developed countries, and the Japanese per
capita income is relatively high than another Asian countries. Besides, the Japanese
fanatical pursuit of trendy things and japan is the birthplace of the trend in Asia. So
here has a great market potential.

Secondly, Potential market segmentation: the Potential market segmentation also

attracts U.S. exporters. Although, Japan has a lot of local jeans brand. United under
the banner of “trend” slogan into Japanese market, and inviting the Japan’s superstar
to do the spokesman foe the jeans. There are attract a lot of chasing the trend of young
people and rapid occupation of the Japanese market.

3. How would you explain the apparent success of LSJ’s advertising campaign
stressing American values in Japan? 8 marks.

The advertising of Levi’s in Japan publicize the American culture with a bold hand.
There are mainly three key points: spokesman’s image, the music of background, the
choosing of advertising spokesman.

First, advertising spokesmans all have remarkable feature of American. For example
James Dean, who is almost all key advertising spokesman’s image in Japanese’s mind.

Second, The music of background are nearly all English song. This way can quickly
lead people into a atmosphere of American culture.
Finally, All spokesman are the famous young star of Japan. Why? Because those
young star are the representatives of creative, energy , brave and success, which are
just the American values. And Levi’s can be on behalf of American values that young
country become the strongest country in the world by their own endeavor.

So LSJ’s advertising campaign stressing American values is success by spokesman’s

image, the music of background and the choosing of advertising spokesman.
Levi’s deveple from a small company of producing a jean to a representative of
American values in other countries’ image. Levi’s is success .
Levi’s deveple from a small company of producing a jean to a representative of
American values in other countries’ image. Levi’s is success .
Nowadays, Japanese think Levi’s is fashionable and young .It’s not only a jean but
also a culture that is a part of American culture.
Levi’s is success.

The Image of young America was used to appeal to the Japanese Consumers.
American Idols and Celebrities like James Dean, John Wayne, Steve McQueen and
Marilyn Monroe.
Television was the primary marketing tool followed by Magazines.
Levi Strauss has competing brands in jeans production that they must compete with to
succeed in sales
Selling alternative styles and continually updating their products helped in keeping a
fresh image and contributed to maintaining/increasing the target market’s interest.
Changing the format from the common urban specialty stores and relocating to
suburban national chain stores
Continuing to use this format helped keep in line with the trend of how jeans were
available and benefited Levi in partaking in the trend set before them.

The image of young America is used to appeal to the target customers. Use of
American idols and celebrities were chosen to apply to them
Because Levi Strauss is a well-known and respected brand among Japan for its image
of being made in the United States, Levi advertised in the way that it does in America,
with little interference from Japan’s local marketing role. This action is an affective
one and should be continued in their advertising so long as Japan’s appeal of
American culture is still intact.
The target market is continually shrinking due to lower birth rates, which in turn
changes the demographic towards an older population.
The marketing strategy may have to be changed to apply towards an older audience in
order to achieve the same amount of sales as previously obtained. If information has
not been obtained on how to sell towards this older demographic, steps should be
taken to do so. Everything from the advertisements to even the products themselves
must be adjusted so as to sell to the maximum extent.

4. List the pros and cons of the different distribution alternatives facing LSJ.
Which one do you think has the best chance of succeeding? 8 marks.

In the Japanese market, There are many wholesales and retail enterprises, small
retailers take a large proportion. The distribution channel is particularly long and
entering. And Japanese market is very hard.
For the pros and cons, in Long distribution channel ,pros:
1.Cover a more extensive market.
2.Mitigate the stress of expenditure of the firm.
And the cons is: 1.Lower the control of the distribution channel by the firm.
2. Increase diversity and uncertainty to the level of service.
3. Increase more workload to coordination between distributors.
And for the Short distribution channel pros and cons, pros:
1. Increase the control of the distribution channel by the firm.
2. Lower diversity and uncertainty to the level of service.
3. Lower the workload to coordination between distributors
Cons:
1. The coverage of market is narrow.
2. Increase the stress of expenditure of the firm.

Attributed to the specific situation of the Japanese market, using the long distribution
channel to sell the jeans is the best chance of succeeding.

Revamping our core Levi's and Dockers product lines to make our products more
innovative, market-relevant and appealing to consumers.
Improving our speed to market and responsiveness to changing consumer preferences.
Launching the Levi Strauss Signature brand for value-conscious consumers in North
America and Asia.
Expanding our licensing programs to offer more products that complement our core
brand product ranges.
Improving the economics of our Levi's and Dockers brands for retail customers.
Strengthening our management team and attracting top talent to key positions around
the world.
Enhancing our global sourcing and product innovation capabilities.
Reducing our cost of goods and operating expenses.
Implementing a new business planning and performance model that clarifies roles,
responsibilities and accountabilities and improves our operational effectiveness.

Trusting the customer to recognize the quality supplied should outweigh the fact that
it’s sold more places. Although one can see how it would damage the image by the
fact that it is less exclusive as it once was, it is the trend used to sell jeans. Work
should be done to confirm that selling jeans at a lower price in more areas is more
beneficial than selling jeans at a higher price in less locations. Surveys on what the
public’s view is on Levi’s quality should be measured as well to make sure that it is
not just corporate concerns but rather a real factor into how the public views their
product.
5. Would you retain the premium positioning of Levi’s in Japan? Why, or why
not? 8 marks.
Levi Strauss is best known as the creator of jeans, the denim pants that millions of
people wear worldwide. The company has become one of the best-known clothing
brands in the world selling both jeans and casual wear. It sells products in 55,000
retail stores under Levi's, Dockers and Levi-Strauss Signature brands in over 110
countries, including 138 company-owned stores and more than 1,100 franchised
stores around the world.

The company is privately held by descendants of the family of Levi Strauss. Shares of
company stock are not publicly traded. Shares of Levi Strauss Japan K.K., the
company's Japanese affiliate, are publicly traded in Japan.

We would like to retain the premium positioning of LEVI’S in Japan.

Firstly, as we all know, LEVI’S represents a kind of culture and fashion in Japan.
Thus more and more people are eager to pursue such a kind of fashion and culture that
LEVI’S is able to occupy larger and larger part of the market.
Last but not least, what the company pursues is to maximize profits. If the company
can still maintain both high sales volume and high profits based on that price, why
doesn’t it keep the price?
In conclusion, retaining the premium position of LEVI’S in Japan is beneficial for
itself.

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