Answer to Question #290620 in Marketing for Keitu

Question

Based on your secondary research into the Levi's brand, you are required to critically examine the relationship between the brand value chain and brand equity.

Answer 1

Brand equity refers to the importance of a brand in the customer’s eyes, while brand value is the financial significance the brand carries. Both brand equity and brand value are educated estimates of how much a brand is worth. Levi Strauss & Co., the world's largest brand-name apparel manufacturer, gave the world blue jeans and grew enormously rich on this piece of U.S. culture.  The brand image Levi's encompasses results in them having a higher price tags compared to other brands. Consumers are willing to justify the higher price because of the brand name. The brand is ideal fit for family because the goods were made from denim and casualwear for children, men, and women.

Brand equity in the Marketing strategy of Levis is known for its iconic denim jeans has helped the company in increasing TOMA (top of mind awareness) thereby resulting in a high share of wallet of the customers. The brand represents the American style & look cool factor.

Levis brand value is $8 Billion with a market capitalisation of $8 billion, the original blue jean maker plans to open new stores, develop fabric technology, offer more points of customisation for customers and improve its e-commerce experience.