What Are the Key Success Factors in the Japanese Marketplace Essay Example
What Are the Key Success Factors in the Japanese Marketplace Essay Example

What Are the Key Success Factors in the Japanese Marketplace Essay Example

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  • Pages: 5 (1152 words)
  • Published: March 25, 2017
  • Type: Case Analysis
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What are the key success factors (KSF) in the Japanese marketplace? The key success factors(KSFs) in the Japanese marketplace is that Levi’s have successfully implemented the localization strategy. As Japan is such a country that the consumption of the world’s luxury goods maintain in the first place.Many brands in Japan have a strong tendency. So if one product want to sell successfully in Japan, it must modify to meet the Japanese local needs and preferences. And they don’t mind whether the price is expensive or not.

Levis' success can be attributed to its localization strategy, as it is well-suited to the Japanese market. Against all odds, Levis established a wholly owned subsidiary in Japan when entry into the market seemed impossible. They tailored their products to fit the body size of Japanese people, who tend to be fitter than Americans. Additionally, all the

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ir products are manufactured by Japanese workers.

Moreover, Levi's products became highly sought after in Japan as they were positioned as a high-end line, appealing to a large number of fashion-conscious individuals. The Bicentennial in the mid-1970s fueled a significant desire for American goods and culture. In the mid-1980s, the popularity of jeans soared among Japanese youth due to evolving fashion preferences. This time period witnessed a surge in casual wear and increased leisure time, reflecting the changing trends. However, in the following decade, the demand for jeans declined, resulting in a shrinking market.

Levi Strauss entered the Japanese market in 1991, which was already competitive with various brands like Edwin, Big John, Bobson, Wrangler, and Lee. Denim was considered a high-end fashion item. Initially, Levi Strauss sold their products through specialty stores at

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premium prices compared to the United States. This strategy allowed them to maintain a perception of high quality since other brands also sold through specialty stores. As National Chains emerged in Japan, Levi Strauss started selling their merchandise to them and gradually moved away from specialty stores.

Selling in national chains had a negative impact on the perception of quality, but it provided better inventory control and faster response times. It also allowed Levi Strauss to sell a wider range of products beyond just jeans.

To what extent do the Levi Strauss's FSA's and CSA's align with the KSFs? How has Levi's utilized its country-of-origin to establish itself as a top brand? Can other American jeans brands replicate this success?

Levi's is a brand with a rich history spanning 100 years. The brand holds a significant position in the FSAs.

The Japan and United States markets have significant differences. They are not only obsessed with Western culture, but also have a traditional oriental culture. As a developed country in the East, the Japanese market offers two attractions for the United States in their Customer Sales Area (CSA) strategy: market potential and potential market segmentation. Overall, Levi's expansion strategy considers both their own advantages and utilizes Japan's cultural environment, ultimately achieving the desired objectives of the Key Success Factors (KSFs).

Levi’s aims to capitalize on the synergy between FSAs and CSAs in order to align the growth of KSF’s. This strategic approach positions Levi’s to emerge as the top contender in the Japanese denim market. Initially, Japan holds significant market potential due to its status as a developed nation, boasting higher per capita income than other Asian countries. Moreover, the Japanese

population exhibits a fervent enthusiasm for all things trendy, and Japan serves as the epicenter of fashion trends in Asia. As a result, a vast market opportunity presents itself.

Furthermore, the potential market segmentation in Japan is a significant draw for U.S. exporters. Despite the presence of numerous local jeans brands, the concept of following trends and featuring Japanese celebrities as spokespeople for the jeans has captured the attention of many young trendsetters, leading to a swift conquest of the Japanese market.

How would you explain the apparent success of LSJ's advertising campaign stressing American values in Japan?
Levi's advertising campaign in Japan boldly promotes American culture through various means. There are three main factors contributing to its apparent success: the choice of spokesperson, the background music, and the selection of advertising spokespersons. Firstly, all advertising spokespersons possess distinctive American features. For instance, James Dean is ingrained in the Japanese public's perception as a prominent advertising spokesperson. Secondly, the background music predominantly consists of English songs, effectively immersing people in an American cultural atmosphere.

Finally, all spokesmen in Japan are famous young stars. Why? Because those young stars represent creativity, energy, bravery, and success, which are exactly the values that Americans hold dear. Levi's can embody these American values that have made the country the strongest in the world through their own efforts. Therefore, LSJ's advertising campaign, which emphasizes American values, succeeds through the images of their spokesmen, the background music, and the selection of advertising spokesmen. Levi's has transformed from a small company that produced jeans to a representation of American values in the eyes of other countries. Levi's is a success.

Levi's has evolved from a small jean

manufacturing company to a symbol of American values in other countries' perception. It has achieved great success as Japanese people now consider Levi's to be fashionable and representative of youth. It is not just a pair of jeans, but also a cultural element ingrained in American society. Levi's success lies in its ability to appeal to Japanese consumers by showcasing the image of a youthful America, which includes influential figures like James Dean, John Wayne, Steve McQueen, and Marilyn Monroe.

Television and magazines were the main marketing tools used to promote Levi Strauss' competing brands in jeans production. Selling alternative styles and constantly updating their products helped maintain a fresh image and attract interest from the target market. To align with the trend of jeans availability, Levi changed their format from urban specialty stores to national chain stores in suburban areas. By using the image of young America and featuring American idols and celebrities, Levi aimed to appeal to their target customers. Additionally, because Levi Strauss is highly regarded in Japan for its American-made image, the company advertised in a similar manner to how it does in America, with minimal involvement from Japan's local marketing role.

This action should be continued in their advertising as long as Japan's appeal of American culture remains intact. The target market is shrinking due to lower birth rates, which in turn changes the demographic towards an older population. To maintain previous sales levels, the marketing strategy may need to be adjusted to cater to this older audience. If information on selling to this older demographic has not been acquired, steps should be taken to acquire it.

Every aspect, including advertisements and products,

needs to be modified in order to maximize sales.

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