International Advertising Strategy of Levi Strauss
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The problem that Levi Strauss faces is how to create an advertising strategy that can meet the needs of customers throughout the world. An international company selling a stylized consumer product, Levi Strauss has encountered quality problems using its current strategy, but this is symptomatic of not having a unified advertising strategy.Justification for Problem Definition Levi Strauss is an international company which has seen its business expand during the last half of the twentieth century. Although the company is best known for the jeans and denim products that it produces, it has been successfully in adding various other clothing lines. Currently, the company uses local advertising agencies and creative personnel to create the advertising campaigns used in various countries. While this means that the campaigns are tailored to each specific market, there are differences in quality and message among the campaigns which the company thinks might be detrimental to its overall objectives. There are three basic alternatives from which Levi Strauss can choose with regard to its international advertising strategy. It can choose to create advertising campaigns on a local or regional basis using input and control from headquarters; this is the current strategy. The company could also choose to create advertising campaigns locally without input from headquarters, leading to a far more independent campaign which does not
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n Japan, where the company was able to capture a greater share of the market when it promoted its products as essentially "more American" than the competition. Using a local advertising agency makes this possible since they are likely to have a strong understanding of the reasons that consumers are interested in products by Levi Strauss, and the creative ability to appeal to those motivations.
However, lacking input from the headquarters makes this a risky way to approach the international market since the level of quality associated with a particular campaign can vary greatly from country to country. Since Levi Strauss has already experienced creative problems even though it exercises some input with its international agencies, it is highly likely that this problem would grow if input from headquarters were removed. Different advertising agencies operate on different budgets, and some may be cutting corners which result in lower overall value to Levi Strauss and lower quality of advertising overall. This may be evident not only in the actual advertising that is produced, but also in the market research and demographic analysis which determines which media is appropriate. Without input from the central office, this strategy
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Approximate Word count = 1247
Approximate Pages = 5 (250 words per page)
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