Mavi Jeans has grown from being a manufacturer of jeans for private-label companies including Lee, Calvin Klein, Armani, and Tommy Hilfiger to a stand-alone brand competing against the world’s well-established retailers. The case study shows that Mavi Jeans has grown as a brand. It has more than 280 retail stores and some flagship stores in major cities such as New York, Vancouver, and Berlin. The fact that the company has recorded 30 percent annual growth over the years with $300 million in sales in 2012 attests to the company’s acumen in the fashion world. Moreover, expanding its lines and offering shows have helped Mavi to strike a chord with its customer in Europe and Northern America.
While it is given that jeans are part of the American culture, many societies and markets across the world today have jeans as a staple in their wardrobes. A focus on Europe and North America means that Mavi Jeans is missing out on some of the world’s largest markets. Parts of Asia such as China, South America such as Brazil, and Africa are fast growing into middle-income economies characterized by expanding disposable income among its citizenry. Mavi should consider expanding its operations in these markets.
Mavi has used celebrities in its advertising campaigns efficiently. While it is prudent to use celebrities, the company should remember that householders are its most important customers. Celebrities give hype to items; however, real marketing must resonate with the company’s target market.
Mavi Swot Analysis
| Strength
i. Quality products ii. Leading denim company in Turkey iii. Partnered and worn by celebrities iv. Environmentally clean clothing (organic) v. Controls the entire manufacturing process, guaranteeing quality |
Weaknesses
i. Not expanding target market: too much focus on the U.S and Europe ii. Targets only the young iii. Low social media engagement in advertising. Relies on mainstream media |
| Opportunities
i. Open new stores in the U.S and other emerging markets ii. Expand CSR as it does in its U.S stores iii. More social media and digital media engagement and advertising iv. Look to undercut competitors in prices |
i. Change in fashion styles
ii. Declining global denim prices iii. Cheaper options such as Forever 21 iv. Consumers looking for softer alternatives to denim
|
Mavi’s current target market is millennials. The company’s products appeal to young, fashion-conscious professionals, who are keen on quality. Mavi’s target audience’s keenness on quality is perhaps the reason the company continues to produce high-quality products to appeal to this market. Moreover, its slogan “Mavi fits” appeals to this fashion-conscious group, who want to wear the latest in trends and designs. The Mediterranean feel infused in Mavi jeans is another attestation to the fashion-consciousness of the company’s target market. Aside from millennials, Mavi also targets women, especially the working class with keen eyes for fashion and with rising disposable incomes. As such, the company hopes to expand its women’s line, making it more colorful.
For positioning, Mavi has positioned itself as a premium denim manufacturer competing with some of the world’s biggest names in denim including Levis, Lee, Wrangler, Diesel, and Lucky. Additionally, the company’s slogan “Mavi fits” points to the company’s position as an expert in denim, as well as a differentiator. The slogan additionally positions Mavi as being consumer-conscious catering to the clientele’s culture, body, and budget.
As part of its wider marketing, Mavi uses the four Ps of marketing that encompasses product, price, promotion, and place. Concerning product, Mavi is an expert in the manufacture of denim. Mavi’s denim products are of the highest quality making them not only unique but also a darling of its target consumers. Concerning price, Mavi offers its high-quality products at affordable prices. Charging premium, yet affordable prices have enabled the company to continue attracting a litany of customers from its target market. The company relies on celebrities to push its promotional campaigns, largely on traditional media such as TV and magazines. The company ensures product availability through its more than 4,000 points of sale worldwide, ensuring that the placement of their products is right at the reach of its customers. The retail and flagship stores in Germany, the U.S., and other places act as placement areas for the company’s products.
Although Mavi’s customers buy the company’s denim products for various occasions and reasons, what they actually buy is the brand that Mavi has built over the years. With a promise of high quality, friendly prices, and an actual “fit,” Mavi’s customers indeed buy the image the company has carved for itself. Providing quality, comfortable, and stylish denim over the years has endeared the company to its customers. Through this, the customers profess loyalty to the brand name rather than the actual products sold by the company.
Mavi’s “menu” approach to cloth sales is novel and requires commendation. A first in the fashion industry, the approach that allows customers to order completed combined sets of clothing is an innovation in Mavi’s sales and marketing. The fact that the company employs some of the world’s top designers and stylists means the combinations chosen are well-thought out and follow some of the most recent trends. Through such sets, Mavi not only increases sales per customer but also builds customer loyalty. Customers are likely to view the company as caring for their looks by providing extra styling services at no cost. Such actions help build strong brand loyalty among customers.
While the intention of the combination may be to offer suggestions to the customers, the danger may come in the inability of some customers to “pull off” the look. Such customers can feel betrayed and cheated by the company for “offering suggestions” given the differences in body shape and type of individual consumers. Mavi should, therefore, ensure that customers are aware that such combinations are merely suggestions and do not guarantee a specific look to the customer purchasing the combination.
Overall, however, people may find the concept rather unenticing, having sales personnel dressed as fast-food restaurant service providers. Moreover, it could easily confuse customers to get service from a fast-food restaurant waiter rather than an expert in fashion. It is perhaps these reasons that caused the company to cease using the approach in its global outlets, keeping it alive only in Turkey. Additionally, the fact that it has not disclosed sales from menu-item purchases could signal the dismal performance of the approach. While innovation is welcome in sales and marketing, it is imperative that such innovations are feasible and of positive impact to the operations of the organization, such that they attract more customers while retaining the clients that are loyal to the company. Innovation for its own sake may indeed be harmful to the organization.