Levi Strauss goes direct with launch of Slates: Dressy slacks will not be sold at retail outlets

Levi Strauss & Company (Canada), a quintessential mass-market apparel company, is leveraging growing consumer acceptance of direct sales channels with the launch of its new line of dressy slacks.

In a company first, it will market its Slates brand of men’s pants exclusively via the telephone (1-800-SLATES) and the Internet .

Remarkably, the brand will not be available for purchase in retail outlets. (In the u.s., Slates was rolled out in 1996 and is sold through traditional channels).

Levi Strauss already uses its Web site, launched in March, as a tool to promote Canadian sales of its Levi’s and Dockers brands, but those lines are widely distributed through stores.

Shelley Nandkeolyar, director of consumer relationships for Levi Strauss in Canada, says the Toronto-based company’s use of direct channels to market Slates is an example of consumer-centric thinking.

Explains Nandkeolyar: Slates’ primary target group – males 35 to 49 with a household income of $65,000-plus – is time-pressed and values convenience. As well, they are growing increasingly comfortable with direct distribution, especially through the Internet.

(A recent Focus Canada survey by Environics Research Group states that of the 40% of Canadian households that own computers, more than 50% have access to the Internet. In addition, it found that personal computer owners are typically English-speaking adults under the age of 60, employed full-time as professionals, technicians, or in office or sales positions with a household income of more than $35,000.)

Nandkeolyar says Levi-Strauss chose Canada to experiment with direct distribution because research shows the country is more advanced than even the u.s. in its computer and Internet usage.

‘Levi Strauss & Co. has a long history of innovation and what we are testing here is how we can bring different brands, different new opportunities or apparel solutions to consumers in different ways,’ says Nandkeolyar, adding the company wants to see how it might build the brand differently in the Canadian marketplace.

This focus on the consumer is consistent with the relationship marketing strategy that Levi Strauss & Company (Canada) has been developing since early last year when it established a Consumer Intimacy group and consumer response centre devoted to getting to know its consumers better.

Nandkeolyar, who worked on that project from its inception, says it has since been folded into the company as the Consumer Relationship group, which is the area he now heads.

‘This [distribution channel] is a continuation of that [Consumer Intimacy] strategy.

‘We’re moving into an area of understanding consumers, and consumer-asset management alongside brand-asset management.

‘I think both are very important aspects of a successful portfolio for businesses of the future.’

Levi Strauss is spreading the word about Slates with on-line advertising in addition to a print campaign and eight-page direct mail catalogue from its agency Harrod & Mirlin/FCB.

The catalogue and Web site illustrate the six Slates styles – consumers can choose from pleated or plain-front styles in gabardine, cotton/linen, microfiber, and polyester/wool in a selection of traditional colors. Consumers specify the appropriate waist size and inseam length and receive them ready to wear.

The introduction of Slates to the Levi Strauss stable of brands – Levi’s jeans and Dockers casual wear for men and women – means the company has nearly the full spectrum of ‘wearing occasions’ covered.

Nandkeolyar says the Slates brand was developed in response to the growing trend toward ‘business casual’ apparel in all areas of the workforce.

In support of the concept, Levi Strauss has actually implemented a program in which it offers to work with employers to draft a policy with respect to business casual attire and follow through with human resources staff to implement it. The company also offers consumers wardrobe counselling over the phone and by mail.

Nandkeolyar says the Slates brand is positioned as a dressier pant that gives confidence, helps round out a wardrobe, has the right amount of style and is affordable luxury with a little attitude.

Advertising uses the lead-in line, ‘The impression you make will stay longer than you did,’ and tags out with, ‘Time to get dressed.’

Nandkeolyar says the company is positioning Slates as a stand-alone brand – Slates, brought to you by Levi Strauss & Co. – rather than as a sub-brand identified with the Levi’s logo.

‘The association is strong between Levi’s and Levi Strauss, obviously, so people may jump there, but there is no branding device for Levi’s brand on Slates ads,’ says Nandkeolyar.

‘I anticipate as we build credibility for Slates as a brand, we will more and more present the brand values first, and make that the pre-eminent positioning.’