whether this is a viable option?
Yes, but ideally if they didn't wish to dilute the image of their brand (eg the backlash Mercedes had with the M class) then they probably should have tried rebranding the jeans. This of course could have given other obstacles in that they may need to create a marketing campaign for the new brand, however since it was stocked in Walmart, I'm guessing the people who shop there wouldn't care too much about brands (eg Kmart tends to do a generic catalogue featuring all brands)
any obstacles that they will face?
See above, basically them losing position in consumer's minds. Try and find reference to former higher end Australian surf brands such as Mango and Hang Ten, apparantly they used to be viable competitors for billabong etc and then started selling in cheaper stores and as result were seen as cheap.
what alternatives can Levi implement to counter falling profits other than this trading down?
Lots!
Reducing costs by shipping the production to cheap labour countries, sell off unproductive assets, lease and rent buildings and equipment and then claim the tax.
This is just a basic run down, my lunch hour's over. I'll try and think of some more answers and post later.
Yes, but ideally if they didn't wish to dilute the image of their brand (eg the backlash Mercedes had with the M class) then they probably should have tried rebranding the jeans. This of course could have given other obstacles in that they may need to create a marketing campaign for the new brand, however since it was stocked in Walmart, I'm guessing the people who shop there wouldn't care too much about brands (eg Kmart tends to do a generic catalogue featuring all brands)
any obstacles that they will face?
See above, basically them losing position in consumer's minds. Try and find reference to former higher end Australian surf brands such as Mango and Hang Ten, apparantly they used to be viable competitors for billabong etc and then started selling in cheaper stores and as result were seen as cheap.
what alternatives can Levi implement to counter falling profits other than this trading down?
Lots!
Reducing costs by shipping the production to cheap labour countries, sell off unproductive assets, lease and rent buildings and equipment and then claim the tax.
This is just a basic run down, my lunch hour's over. I'll try and think of some more answers and post later.
Alternatives:
Finding a niche market and going for it- a risky option for a long established company but they may create a range targeted to plus sizes, maternity, really skinny people, ethically sustainably made jeans etc.
Product research, ask consumers what they like in jeans, what they hate, what they want to see etc. Then try to meet these needs and wants (another risky option cost wise because of R&D and the time taken to recoup, however depending on where the company is registered large % of R&D can be recouped in tax breaks etc)
Sponsor someone, have some up and coming star, band etc wear the product- groupies and wannabes will follow.
I hope this helps, finally those letters after my name are coming in useful.
Finding a niche market and going for it- a risky option for a long established company but they may create a range targeted to plus sizes, maternity, really skinny people, ethically sustainably made jeans etc.
Product research, ask consumers what they like in jeans, what they hate, what they want to see etc. Then try to meet these needs and wants (another risky option cost wise because of R&D and the time taken to recoup, however depending on where the company is registered large % of R&D can be recouped in tax breaks etc)
Sponsor someone, have some up and coming star, band etc wear the product- groupies and wannabes will follow.
I hope this helps, finally those letters after my name are coming in useful.
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