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Essay / Research Paper Abstract
This 4 page paper considers a plan by Levi Strauss to enter the mass market as well as maintaining a position in the premium market. The paper argues that maintaining two different market positions is unlikely to be successful. The paper then considers how the company may use data mining to obtain information before making the decision to enter this market. The bibliography cites 3 sources.
Page Count:
4 pages (~225 words per page)
File: TS14_TElevimass.rtf
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Unformatted sample text from the term paper:
the premium market with jeans selling sat a price tag between $85 and $220. This means sales may be lower but the level of profit per item will be higher.
To maintain this position the company has had to have outlets with this target market, and a brand image that supports the premium on price. However, the market is maturing
and a great number of competitors have entered the market and are buying jeans at lower prices from different low cost outlets. Levis have undertaken research and determined that this
is a different market and there is little cross over between the mass market and their premium market and hope to be able to gain sales from both markets.
The decision has been to enter the mass market and increase the level of sales. The theory behind this is that the profit
per item will be less, but the higher demand will increase the profits overall as this is probably a fairly elastic product, meaning that as price falls sales will increase
and income will increase at a greater rate than the price decrease. This also means the opposite is true where price increases there will be a disproportionate drop in demand
for the goods. The issue is then one of consideration, as to reach both the premium market and the mass market being a very difficult marketing task.
Porter has argued that a company needs to match the product and capabilities with the market to find a good match where they can establish
and maintain a clear product position with his competitive market model. The mass market and the premium market ate two very different positions. Porter argues that if a company attempt
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