Levi's India Offers Jeans at EMIs | Marketing Management Case Studies

Details

Case Code : CLMM049
Publication date : 2009
Subject : Marketing Management
Industry : Apparel
Length : 03 Pages
Price : Rs. 100

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Key words:

Levi's, sales promotion, aspirational brand, branded apparel industry, organized retail market, economic downturn, equated monthly installments, EMI, credit cards, ICICI Bank, HDFC Bank, Axis Bank

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

Abstract:

In June 2009, Levi's Strauss India Pvt. Ltd. (Levi's) launched an innovative marketing offer to sell Levi's jeans and its other branded products on equated monthly installments (EMI) payable through credit cards. The company launched this offer in a bid to arrest its decline in sales triggered by the economic downturn. The offer launched by Levi's received a mixed response from industry observers, customers, and analysts.

Issues:

» Sales promotion
» Marketing

Introduction

In June 2009, apparel manufacturer, Levi's Strauss India Pvt. Ltd. (Levi's), offered to sell its well-known Levi's brand of jeans and other Levi's products on equated monthly installments (EMI) payable through credit cards. Analysts viewed this as a bid by the company to increase sales against the backdrop of the economic downturn. The company planned to arrest its decline in sales through this innovative offer...

Questions for Discussion:

1. Critically analyze Levi's offer to sell its Levi's brand of jeans and other Levi's products on EMIs. Analyze the rationale behind Levi's offer.

2. Discuss the pros and cons of this initiative. According to you, will the company succeed in its objective?