Mansi's Blog

WHY LEVI’S SUITS WERE A GOOD IDEA

Grounded on the video of Levi’s attempted brand extension into tailored suits in the early ’80s and the conversation within Levi’s management, it looks like the company was facing a saturated jeans market and there was an intense need to explore, expand, and diversify new directions and approach to nurture its business in the competitive market. Levi’s management, represented by individuals like Peter Hawes and Steve Goldstein, acknowledged that staying the same in the market would not make it better for them so this was not an option and they needed to extend their product offerings.

A thorough market segmentation study that identified a specific target audience within the men’s apparel market derived the decision to expand into tailored clothing, such as slacks, sports coats, three-piece suits, and socks.  They identified various groups of shoppers based on their shopping styles and preferences.  One of them was described as a “classic independent” referred to as a real clotheshorse who spends more on clothes than other groups, values traditional dress, and prefers to shop alone in specialty stores. This group was seen as having significant potential for growth, and Levi’s aimed to capture this market by offering tailored clothing that matched their preferences.

Let’s dig deeper into the justification of why Levi’s suits might have seemed like a good idea from the perspective of Levi’s management in the early ’80s.

• Diversification of Product Portfolio:
  As the brand is primarily known for its denim products, it may have seen an opportunity for growth if it diversifies its business by introducing new products. They may have thought of diversifying their product portfolio by entering into the formal ear market. Diversification is a well-known and common strategy many businesses adopt in order to gain and expand their business and so did Levi’s.
  
  
  

Vintage Poster: 1970s Introducing Levi’s Action Suit

• Revenue Growth Potential:
  Usually, the formal wear market demands higher prices and the management team of Levi’s might have seen this as a golden opportunity to generate more revenues and profit margins. The extension into tailored suits might have been considered a prudent move to tap into a segment with greater spending potential.
  
• Leveraging Established Brand Reputation:
  In the 80’s as well, Levi’s was already successful in establishing itself as an iconic American brand associated with premium quality and craftsmanship. Management must have seen the potential in the brand that this powerful reputation of the brand would be leveraged if they entered the formal wear market to fulfill consumers’s expectation that they would trust Levi’s name for well-crafted suits.

1985 vintage original print ad Levi Brand Action Suit Comfort For Men

• Meeting Consumer Demand for Lifestyle Branding:
  In the 80’s there was an escalation in the concept of branding. In this escalation, consumers pursued to position themselves with brands that represented a particular way of life. Levi’s already being a part of famous American casual wear and manhood, the brand must have believed that extending into tailored suits would fulfill the needs and desires of the consumer for an inclusive lifestyle brand.
  
  
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• Market Research and Trends:
  The decision to extend has been influenced by market research and the trends representing an emerging interest in more formal and sophisticated fashion choices. Levi’s management has explicated this information as an opportunity to capture a share of the market by offering suits that embody the brand’s values of quality and timeless style. This is a fine example of how the brand has converted a valuable insight into a refreshing experiment.
  

A one-sentence summary of Levi’s brand proposition supporting this brand extension could be:
“Levi’s extension into tailored suits is a symbol of its allegiance and dedication to embodying American craftsmanship and timeless style while maintaining its commitment to quality and authentic definition of formal wear. ”

To summarise, this expansion into tailored clothing by Levi’s management was trailed as a tactical move to expand and diversify into a peculiar segment of the men’s apparel market.

WHY LEVI’S SUITS WEREN’T A GOOD IDEA

Below are the discussed warning signs Levi’s should have seen before introducing their new product:

• Mismatch Brand Image:
  The brand Levi’s had a strong and consistent image associated with casual western wear, bold and iconic clothing particularly denim wear. This attempt to extend the brand into tailored suits created a risk of impoverishing this powerful and consistent brand image, it also faced resistance and skepticism from consumers who strongly connected with Levi’s denim. This mismatch in the brand image could be a potential warning sign that the market and consumers strongly associated with Levi’s denim might not accept it readily. This warning sign included the potential for confusion among consumers along with the feeling of disconnection between the new product and Levi’s established brand personality.
  
• Consumer Loyalty and Expectations:
  The loyal customer base of Levi’s associated themselves with the brand as being rebellious with specific values and lifestyles. Warning signs emerged during a focus group discussion when a consumer was uncomfortable with the idea of Levi’s in formalwear. This demonstrated a potential mismatch between consumer expectation, and brand loyalty with the new product line.
  
• Communication Strategy and Brand Storytelling:
  The brand should be concerned about its storytelling, in this case, Levi’s should have estimated how well the new product line of formal wear is going to align with the brand’s storytelling and narrative. Warning signs become visible when a  consumer reaction stipulates resistance to the notion of Levi’s suits. This accentuated the significance of a crystal clear communication strategy that should also align the new product with the brand’s values and heritage.
  

Based on my personal perspective, Levi’s might have overlooked the importance of brand consistency and compatibility with consumers’ perceptions in the context of brand management.

A one-sentence summary of Levi’s brand proposition that argues against this brand extension could be summarized as follows:
“Levi’s brand personality, deeply rooted in its casual western wear and its rebellious and iconic denim, contradicted the foundation of tailored suits, leading to confusion and aversion to associate with Levi’s formal wear.”

To conclude, the brand should have focused on being consistent, consumer loyalty, market research insights, and communication strategy by staying true to its brand story and narrative. These components should be emphasized before launching the new product. The warning signs symbolized the potential disorder between the brand’s established identity and the formal wear extension, highlighting the importance of strategic brand management in new product introductions.