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International marketing tactics
International marketing tactics
Culture impact on international business
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Levi's has always tried to minimize the impact culture has on its ability to produce standardized products and campaigns. This is done to achieve economies of scale and a higher quality but cultural differences can be very important in the global and domestic markets. The characteristics of a particular cultural group will affect the type of products it desires and how they purchase it and use it. From the 1950s to the 1980s Levis was the image of rebellion and counter culture with public icons such as Elvis and Marlon Brando publically seen wearing the brand. This helped in giving the brand an image of originality and authenticity. But what Levis failed to grasp was that culture changes through time and consumer behaviour and choices change along with it. The rap culture which began in 1992 brought about new trends of loose baggy clothes. Levi's which sold straight tapered jeans failed to meet the needs of its consumer market who demanded loose baggy jeans which were considered as "cool" at the time. This demand was fulfilled by competitor brands such as JNCO, Kickwear and Boss etc who were quick to grab on to Levi's market share with products which were more suited to the younger generation. Even the rebellious image of Levis was taken by other brands like Diesel and Pepe.
Diversification of factors determines whether the marketing mix of the respective company can be standardized for all the customers or whether it needs to be adapted to suit to everyone’s different needs. These include socio/cultural, physical environment, demographic, technological, legal/political, and economic factors.
Socio-cultural factors:
Socio- cultural factors consists of language, ethics, religion, values and customer perceptions. It deeply affects t...
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...d while going global. The aim should be to implement a contingency approach also known as adaptstandation; that is an appropriate balance of both the approaches by appropriate balancing between maximizing the gains from standardization and competitive advantage through adequate adaptation to local markets conditions (Terpstra & Sarathy, 1994).
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Kotabe, M., & Helsen, K. (1998). Global marketing management. Temple University. New York: John Wiley & Sons.
Cravens, D. W., & Piercy, N. F. (2009). Strategic marketing (9th ed.). New York, NY: McGraw-Hill Company.
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First connotations were simple: "jeans are tough and rugged as men who wear them". This image of a 100% man was even strengthened after western movies appeared. Soon jeans, and so Levi’s brand which in people’s mind turned to be their synonymous, became a symbol of freedom, adventure and independence. In this moment, managers of LS&Co decided to expand the brand. Even though there where various new cloths introduced to the market ; 501 jeans remained their top-selling product. It was their new brand strategy to "offer products for every life style", which turned to be a fiasco. Not only it didn’t bring expected results, what is more, this to big diversification caused drops in sales. It was so decided to come back to the core product and it’s image. To strengthen the Levi’s position on a market, their launched a new campaign which emphasizes emotional connection between jeans and theirs owner. To wear 501 it is to be yourself – they said.
The atmosphere of the store is also an important element which influences consumers' judgment about the store but also about the brand that why all Levi's stores look approximately the same.
Kotler, P. & Keller, K.L., (2009), A Framework for Marketing Management. 4th edition, Pearson Prentice Hall: USA
Levi Strauss was from a Jewish culture and supported many Jewish fundraisers and did his best to keep his Jewish culture alive when he moved to San Francisco. When there was a shortage in denim, there was a shortage in profit, and that may have slowed down the company. In 1973, profits fell based on some bad decisions made in the company’s European Division. Many people wanted bell-bottoms, but all the company had made was straight-legged pants for markets.
Since 1967 Polo Ralph Lauren the brand is impeccable example for how a company must develop strong brand equity through the years. Indeed, the brand has established its image across a diversity of products and markets using a perfect lifestyle marketing approach. To understand how the brand has achieved strong brand equity, and resonance with its customers, analy...
Lamb, C. W., Hair, J. F., McDaniel, C. D., & Wardlow, D. L. (2009). Essentials of marketing (6th ed.). Cincinnati, Ohio: South-Western College Pub..
Polo Ralph Lauren’s key success factors derive from the company’s powerful identity. It is notorious for it preppy American style in the designer world, but it is also luxurious, elegant and thrives to always be a classic. It appeals to a wide range of consumers, even if a person doesn’t wear Polo they are at least familiar with what it is. The way the company markets itself is also a big part of its success. For a company that started out less than 50 years a...
Lamb, C. W 2010, Marketing (4th ed.). Cape Town, South Africa: Oxford University Press Southern Africa.
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