Strategic Alternatives:

A. Maintainstatus quo, as current brand marketing strategy has resulted inthetop positionin the mind share and domination oftheUS consumer market wherethe benefits from managinga single strategy to build the loyalty across the differentGeneration target groupsoffer a greater perceivedbrandimage value using a single objective execute by the single SBU responsible for the US territory consumer market. Though, the current resource allocation has workedwell in the past to capture the mass-consumermarket with a prestigous global brand image, this continued strategy to overlook the unique niche needs and characteristicsfor the different Generationtargetsub-segmentswill leave the door open to for competitivethreatsfrom smallerbrand new entrancees that pursue aspecific Generation target group with a Niche Marketing strategy that can change the Jean wearingand purchase behavior ofmost consumers within this Niche Generation, B. Pursue multiple marketing strategy objectives that a single SBU can accomplish that will improve thesatisfaction ofcustomers belonging to each Generation's set of needs, circumstances, and characteristics. C. Resolve conflicting SBU goals by Product development strategy developed for each soverign SBU charged with enhancing the saProduct development strategies; Product improvements; Product-line extensionsNew products for same market Of these three alternatives, Alternative C relects consistent customer-focused objectives that will surely solidify the future revenue/profit stream expected fromexisting customer base lifetime relationship value.\ Measured through increased satisfaction, retention and loyalty of customer relationship with the Levis brand, the Marketing Strategy for each new SBU will be different ais uniquccess will is uniquelyestablished from the new SBU objectives to by creating a much greater relationship value customer-focused Alternative C is recommended so that each SBU is established to benfit t

Recommend Action Plan Overview -- Key tactics applied include micro-segmentation, marketing program targeting, and brand/product positioning decisions: 1. Divide customers into narrowed micro-segments using the Generationlifestyle criteria creates subsets of people with similar needs, circumstances, and characteristics \ 2. It can start of as a focus team doing marketing researching GenY, but later it is the basis for setting up a new SBU that appeals to what GenY customers want from their Jeans Levis must further divide customer market segments into more finely defined subsegements made up of consumers that share closely similar needs, circumstancs, and characteristics that will lead them to respond in a similar wayto product positioning, brand image penetration, or to a strategic marketing program communication message. 2.Select a target segment (genX, BabyBoomers, genY) on which segments to focus a strategic marketing program Second, Levis marketers must select a target segment on which to focus a strategic marketing program based on an assessment of the attractiveness of futurereturns that are expectedto be generated from the resource allocation investment required to capitalize on thistarget segment opportunity. 3. Decide how to position newly improved Jean productoffering;Design product marketing program emphasizing relevant attributes and benefits which appeal to customers in target micro-segment; Define the marketing mixconsistent with new position strategy, keeping the newly sliced micro-segment target in mind.

C1 S - capital resources, global brand equity, 100 yr jean apparel leader, pioneer for category; W - broad product-market targets, out of reach with customer base for segment behavior change anticipation. C2 O - exists on the micro-segmentation level, globalization, product development evolution uniquely fitted for multiple niche markets within customer base T - attack from multiple niche marketing competitors, each with full resource focus on single niche. W - not as capitally rich and not as consumer knowledgeable in general S - fast learning through marketing/consumer inputs, focus on single group that is truly homogenous in behavior, needs and lifestyle

Context - fast diverging and increasing distinctiveness of lifestyle sub-segments (generations categories of US population) which can make a broad segment marketing approach less and less effective for Levis leaving behind unmet needs in some categories to the detriment of its brand equity value perception by the segments and globally. 1. How should firms such as Levi's respond to the differing needs and growth rates of the various generations? Levis needs to go beyond the country-specific macro-segmentation criteria to capture the opportunity that exists within the heterogenous lifestyles of each unique generation that exists within each country's broad consumer segment. Levis has too broad a marketing focus to fully satisfy each Generation's unique set of needs, requirements, and other attributes that would match each's respective lifestyle. By undervaluing strategy alternatives that would narrow the marketing strategy focus to created added-value perception accross the generation niche groups, they provide the smaller brand an opportunity to capture one or more of these micro-segments through a niche marketing strategy that would differentiate first within the niche target audience. Once a smaller brand is first to enter the 'share of mind' for a generation using a niche marketing approach they will deliver a value proposition far superior to that of broadly focused marketers like Levis. Currently, each of the Levis SBU for each country will need to pursue multiple strategic objectives to successfully capture the consumer opportunity across the different generation audience targets. However, trying to achieve many objectives at once creates conflict in regards to how resources will be allocated perspectivethat would narrow the focus of resources to reach each specific generation group through a marketing strategy that appeals to each group's unique lifestyle characteristicsthat ithin the SBU level in each country LEVIS needs to seperate the best marketing strategy for each of these distinct generations based on
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marketing research efforts that will provide the data analytics which marketing managers from each generation-specific target team can develop actionable insights to effectively reach each unique generation target audience based on understanding and appealing to each grouping's relative set of preferences, personalities, behavioral patterns creating differing SBU that are able to each market focus within the lifestyle of their respective generation micro-segment. The best way to seperate the conflicting objectives is to first break them down into sub-objectives, which are then assigned to seperate SBU. Since these objectives and goals are different for each SBU targeting a specific Generation sub-segment within each county macro-segment, it stands that different marketing strategies, marketing programs, and brand differentiating uniqueness emphasis are required to most effectively execute marketing resources at each micro-segment target group (Generations X, Y, BabyBoom for US). The capital resources allocated towards this narrowed marketing target focus is justified when determining the huge profit value potential based on the customer's lifetime value measurement metric. With the future market share on the line, Levis decision makers should agree that greater priority should be given to locking in the future value gains associated with that customer lifetime realtionship metirc over conflicting near-term financial objectives. Therefore, Levis primary objective is developing and maintaining long-term customer relationships by giving greater importance to maximizing customer satisfaction, retention, and brand loyalty. Levis must then design and execute an impactful strategic marketing program for each product-market entry which convert one or more of the company's unique resources into something of value for each Generation targeted micro-segment. Furthermore, effective marketing communication of theose benefits are a key element for succesfully creating and reinforcing an accurate brand image perception in the mind of the potential customer. Until Levis more extensively segments, targets, and positions specifically to appeal to more narrow and homogenous customer grouping, the threat of a competitive niche strategy attacking their customer base will exist. Levis has another distinctive strength in its prestigious global brand which is nearly imposible to duplicate or imitate. As long as Levis is not too late to act, the resource and brand strength advantages should serve as the foundation for the creating the most effective competitive/marketing strategies to each Generation-based niche grouping to extensive satisfy these consumers to a greater extent than ever before, resulting a lifelong loyalty and synergies for other business areas to take advantage within these Levisbrand connected target groups. The text refers to this Expansion strategy as 'Developing New Products for Current Customers'. The strategy goal is to capture future growth by emphasizing developing and maintaining long-term customer relationships based on greater importance given to satisfying, retaining, and building loyalty. product marketing focus to match each generation by appealing to their respective set of preferences, . They must first convert this marketing reseach data (segment-focused marketing-oriented information) into actionable analytical insights for each specific generation target. Next, the complete target audience profile must be built and finalized by the marketing team experts for each particular generational sub-segment cluster using age range as the segmentation criteria. Then each segment requires the unique formation of a dedicated business unit focused on its specifi target cluster and characterized by its own formal marketing objectives which include targeted goals.This way the differences amongst the generations and the the life-cycle stages of the Jean apparal category markets targeted at each sub-group will require that every soverign business unit pursue their own growth objectives in different ways (without the bias influences of other business units which have no understanding of another business unit's targeted market segment). Thus, each business will be able to connect with its respective group by appealing to its personality with a matching brand image positioning strategy that will mirror the personality of that audience to take advantage of natural human behavior to typically like the same personality traits within others. This matching of brand image specifically to the generation-based sub-segmented audience is essentially the personalization of the brand. Levis must add personality to its brand for the benefit of appealing to the unique personalities of each target group and creating a more attractive perception of the brand. Formulating marketing strategies for the specific circumstance, needs, and trends characteristic of each Generation target makes the marketing efforts for Levis more like 'a sniper on the roof sharp shooting' rather than 'spraying from left to right in the direction of the target'. To successfullhy execute such strategies, Levis must invest resources towards collecting key market research information, convert it into actionable insights, and apply this advantage towards developing product-market strategy emphasizing the newly customized product-line extension that precisely matches the needs, preferences, and mix of attributes of the micro-segment. Therefore, the future value of each micro-segment must be attractive enought to make the investment of capital today. arget market's demand, competitive forces, and life cycle stage. Therefore, the different Generation micro-segments will be targeted with just as unique marketing strategies based on data analytics in effort to maximize the impact of marketing programs. Analysis of this key target-specific data will provide Levis with the insights The strategic marketing program for Levis should reflect market demand and the competitive situation within the select target market.
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By micro-segmenting within the country's consumer market allows Levis to find sub-groupings within the markets that are being underserved or missed with the product positioning and brand marketing efforts. There is always some heterogenous characteristics which emerge within the once homogenous segment due to shifts in customer needs or preferences. Such changes are future opportunities that Levis needs to anticipate so that they can respond quickly with adjustments in their marketing objectives and programs to fit the new opportunities, which result in flexible and creative marketing programs geared to pursue growth or profit opportuities as dconditions change in sprecific product-markets. ASSESSment of the actractiveness of the opportunity to develop a niched marketing strategy focused on specific age range demographic characterizing the targeted Generation sub-segment which show behavior similarities that might result in a more effective marketing program communications which aims to develop the customer relationship through improvement in loyalty, ...... Measured through increased satisfaction, retention and loyalty of customer relationship with the Levis brand, the Marketing Strategy for each new SBU will be different ais uniquccess will is uniquely established from the new SBU objectives to by creating a much greater relationship value This new sub-market niche category Possibly take preemptive action to reduce the possible threat of a smaller brand that could fill the needs of a specific Generation target niche by allocating their entire resource investment available to satisfying this group far beyond the that of any other products or brands within this category. Using a niche strategy to position their offering against that of the big brands like Levis that overlook consumer differences in needs, circumstances, and characteristics that lead to variations of behavior responses to a broad segment targeting non-specific marketing programj 1. Levis must be able to more precisely identify and target smaller and more precisely defined market micro-segment Generation lifestyle target audience groupings that a customized product will specifically cater. This narrowed product-market focus will enables firms to forge more cooperative, trusting, and satisfying customer relationships within each micro-segment group. Levis decision makers will only decide this focus on narrowed segmentation by Generation-based lifestyle if they understand the growing importance of building loyal customer relationships for increased efficiency of marketing programs to capture a larger portion of customers lifetime value through the greater brand image penetration into 'share of mind'. Urgency exists for firms in the competitive Jean Apparel industries to become market-oriented before any rivals or small brand new entrant with a niche strategy succeed in targeting and prosper within the targeted market in the future. 2. What risk do projects such as Toyota's Genesis project have for the firm? Risks associated with resource allo\cation towards the Toyota Genesis youth project include trade-off that will reduce near term performance and cash-flow for future revenue and customer group loyalty value gains based on Toyota's anticipated future market opportunity becoming the reality.

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