Management of Change in Levis

Levis Game Round 1

Levis Diesel

Levis Game Round 1

Levis Diesel

The team which has the most balls in its side LOSES

The team which has managed to throw more balls to the others WINS

At the end

History of Levis

1853 “Levi Strauss & Co.” was established

1873 The first blue jeans were created

1960 Internationalization

1970 Failure to change

1990 Regeneration - establishment of new position

Later on From icons to innovation

Characteristics

4 brand names: Levi's® Brand, Dockers® Brand, Signature by Levi Strauss & Co.™ Brand and Denizen® Brand.

3 geographic divisions: the Americas, Europe Middle East and Africa and Asia Pacific, with sales in more than 100 countries.

Competitors: from global and local levels, such as Gap Inc. and Inditex, Wrangler, Lee and Seven for All Mankind at global levels. Local levels refer to some retailers' private or exclusive labels.

Levis Game Round 2

Levis Diesel

Inertia

New Players

Levis Game Round

Levis Diesel

New entrance

Inertia

New Players

Problems with Levis

Ignore Threats

Brand Perception

Fashion trends

Supply Chain

Teen Customers

current distribution strategy focused on seeking presence in boutiques located within department stores and an emphasis on the brand as the strongest element.

Ignoring competitive threats is the beginning of the end. Success leads to arrogance and arrogance leads to failure

Focus : emphasis in wholesale merchandising - i.e. selling millions of pairs of blue Levi’s to retailers and ensuring good sales volumes and profits for these retailers only

One of the main reasons for consumer abandonment seems to be that Levi’s began to be perceived as no longer being stylish and having lost touch with what consumers wanted.

Thought as a “baby boomer “ brand – lost its teen customers

Change Procedure

Posters Story boards Interviews

Management Styles

New Job descriptions

Opportunity to apply for new Jobs

Review of past Changes

Meetings

The change agent

Emily is the ultimate ambassador. When you see her in front of 200 people, and she's painting the vision, explaining the impact, you can't help but get excited. She has lots of credibility

LESSONS LEARNED FROM THE INTERNAL ENVIRONMENT

1. Expect Resistance2. Don’t take it personally3. Take fear out of change4. Make it fun5. Information, Involvement,

Intervention (3 Is)6. Let people speak what they think is

wrong7. Everyone has a voice, not everyone

has a vote8. Creation of new job positions that

require new behaviors9. Leadership, teamwork, systemically

thinking10. Personal responsibility

CHANGES AT THE MARKETING STRATEGY

1. Resegment the market2. New brands to appeal to other

consumers

Tom Kasten

After implementing the changes, the company generated record sales of nearly $7 billion and profits of more than $700 million. Its market value is an estimated $10 billion -- four times its value when it went private in 1985.