Levis Wholesale Store Project – Common Issues and Store-by-store data analysis
Issue-
Poor Previous Management
- Previous sales manager, in an attempt to meet the goals that were set for him, oversold product to the different wholesale stores around the country
- As the stores were not able to sell-through as much as was sold-in, the stores started to build up an excessive inventory
- The different wholesale stores now had excess inventory which they were not able to sell and that started to be outdated (aging > 6 months); the inventory now sits in the different stores and has a hard time getting sold
Political Unrest in Thailand
- The political unrest lead by the military coup in early 2014 created a time of low consumer/business confidence
- In the north of the country, a type of price floor on the rice created artificial high rice prices for rice farmers. The government however was not able to pay the price floor
o Created a shortage of money, a lot of farmers lost disposable income which they could have spent on clothing and therefore reduced their demand for the Levi’s product, resulting in less sales
- In the south of the country, the price of rubber heavily decreased
o This again reduced the disposable income of the farmers and led to less demand for the Levi’s product
- The military coup also created a period of uncertainty also for foreign tourist, whom decided to not travel to Thailand. This again could have reduced the overall sales of the wholesale stores due to the missing sales to foreign consumers
Goals-
- Reduce the amount of inventory that the different wholesale stores have
- Be able to increase both the sell-in and the sell-through by creating more true demand for the product
- Sustainable growth within both the sell-through and the sell-in of Levi’s products in the different wholesale stores
Task-
Go through each of the different wholesale stores, identify a problem(s) that the store may have, and then conduct a SWOT analysis as well as find a possible solution to the problem with the wholesale store.
Find problems, store by store by looking at stock/sales numbers and using those start drafting a store by store (group stores if it is possible) agenda with an action plan aimed at trying to solve the different problems. (week by week plan with different types of sales, activities, etc.)