Should LSC Take Back The GWG® Brand? MEMORANDUM Date: Aug 20th 2010 Subject: Recommendation: LSC to take back the brand GWG® To: All Senior Executives From: Supratim Ghosh Levis’ Strauss Canada Holding An Ember : The GWG Brand® Executive Summary Over the past 4 years, Jack Spratt has not performed as per the given targets by LSC. The sales of the GWG® brand jeans and apparels has gone down in terms of market share.
Only around 2% of the market share is with GWG® in 2000-2001 (Exhibit 1), while under the license of Jack Spratt. There has been no investment done by the licensee to revoke the image of the brand and its product. There have been no updates in fits and style over the past 4 years done by Jack Spratt. Even there has been no innovation in the marketing plan to promote the brand. The fear is if it continues this way, eventually the Brand will be run into the grounds.
With the rise of the Private Label and designer brands like The Gap, Calvin Klein, Tommy Hilfiger, Diesel, and Guess getting more and more popular, GWG® is still offering the same limited line of products that focuses to the segment of men by offering 4 fits, 4 finishes: 16 sizes with two different lengths. There has been no effort yet to popularize the women segment, where the competition is far ahead. No new marketing strategies such as improving the different customer-relation approach through advertisements can be seen.
In today’s Jeans market, there has been revolution in getting new fits, cuts and designs, which is completely missing in GWG®. The private and designer label brands are more successful because these brands have been successful because of the styles they offer and the images they portray in advertising. They are more in touch with the attitude, behavior, and expectations of today’s youth. GWG® is now termed as Jeans for the previous Generation or ‘Parent’s Jeans” With the benefits of a lower price tag than most other brands, promoting new style ; design could have retained the market share of GWG® .
Also from being more traditional, the approach of adapting the outlook of the GenX could have given the new-look stores feature an in-vogue, minimalist layout. From reaching the trendy market for females, decision to place greater emphasis on females by introducing some trendy, low-rise styles, and a rack of premium ‘vintage” jeans at a higher price. However with all means available, without the lack of effort to promote the brand, Jack Spratt has failed drastically. The main problem in the scenario focuses on the revival of the product due to its low improving sale.
Looking at the current performance of Jack Spratt, at this stage, when the license is approaching renewal, it is strongly recommended that LSC should take back the responsibility of GWG® brand, and put special attention to regain the past glory of the product keeping in mind the USP of Quality and Price going hand in hand. Considering the decision of taking back the brand GWG®, our Marketing department should put more focus on creating a greater connect of the brand with the consumers and the young generation.
The first step should be to do a “fit test” with consumers—the first for the brand since the mid-nineties—and adjust sizes and cuts for today’s body shapes. Since GWG had a certain appeal with the Canadian baby boomer generation the plan is to target that market once again. The price range of $29. 99 to $34. 99 will be retained. As a starting point, a positioning strategy statement must be developed for the product line. The unique selling proposition also has to be determined. How will GWG jeans be distinguished from competitor lines?
All marketing communications strategies must be directly linked to the positioning strategy. Final Recommendation: Levi Strauss Canada should take back GWG® from Jack Spratt and cancel the license agreement post the current period gets over. Also it is not guaranteed that GWG® will see an immediate turn around post LSC takes back the control, but considering the suggestions to promote the brand and changing its marketing techniques for promoting GWG® better results for this iconic brand of jeans in Canada can regain its reputation.
Exhibit 1: Market Share—Jeans Market in Canada| Brand| 2000 -01| 1996| 1991| VF (Lee and Wrangler)| 25. 3| 24. 5| 17. 9| Private Labels| 20. 2| 22. 1| 3. 2| Levi’s| 17| 18. 7| 31| Licensed/Designer Labels| 7| 5. 2| 3. 7| Gap (Gap, Banana Rep. , Old Navy)| 4. 9| 4. 2| 2. 7| GWG| 2| 2. 5| 4. 5| All Other| 23. 6| 22. 8| 37| Source : http://www. conestogac. on. ca/~sfinlay/IMC/cases/LevisGWG. htm ; Other Google Search results.
