Levi

It should be noted, however, that neither situation is totally comparable, Levi's is particular within the strength of its brand name, which for millions of people is synonymous with blue jeans.

Step 3: List Option Courses of Action.

The choices now becoming considered are to a) more fully decentralize, leaving regional groups free to develop advertising with local firms, b) retain the offer policy of combined responsibility, or c) develop 1 global advertising strategy.

Before heading on to evaluate every in the 3 choices individually, it may be exciting to step back and briefly contemplate the underlying strategic issue. The alternatives obtainable represent a range from centralized direction to regional group near-independence. The virtues of centralized direction of Levi's advertising, apart inside the purely internal and administrative aspects of control and accountability, are twofold: it allows unity of effort and focus, and it reinforces the global identity of the Levi's brand name, which as noted is distinct inside industry. On a other hand, the virtue of local independence is that it places advertising and marketing decisions closest to the customer, where advertisers is going to be much more conscious of local requirements and desires.

International sales growth need to be monitored by nation on the period of at least two years, and compared to growth over the past few years, and to growth by Levi's competitors, being a measure of effectiveness of locally-directed advertising.

Central direction cannot adapt itself to these regional variations. Even limited central direction may well fail to solve local problems, as has been the situation in Latin America. Moreover, in such a situation there is a genuine danger that heavy-handed interference from abroad could provoke a damaging reaction.

3. Local direction with central input. This model, the one currently followed by Levi's, attemps to strike a balance between the previous options. Principal promotion decisions are left in local hands, around the industry and sensitive to local wants, but corporate management exercises a supervisory role that permits some quality manage and helps to maintain the global focus with the Levi's image.

ponding disadvantages; centralized control is remote within the customers, though local manage may well cause loss of focus and accountability. Levy's is thus faced not having a effortless choice among a very good alternative including a bad one, but with striking a balance among competing benefits and disadvantages. The present intermediate course, moreover, may accentuate either the strengths or weaknesses of each end-point option. In short, whichever option is chosen will involve both advantages and costs, and all involve risks.

The overall objective of this policy is to foster the international growth of Levi's, as well as the ultimate test of its highly effective could be the relative growth in the international market being a percentage of local sales. A secondary test could be the capacity of local group managers, including in Latin America, to solve their promotion problems. Achievement in creating so will, being sure, be demonstrated by sales growth, so this objective is subsumed from the overall objective.

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