1. What factors contributed to the success of Mavi Jeans?
2. How would you define the company's target market? What is the current positioning strategy? Briefly explain Mavi's 4Ps.
3. What are customers of Mavi actually buying?
4. How do you evaluate the "menu" approach?
5. What recommendations would you make to help Mavi keep up the brand image and enhance the connection to the target market?
Founded in 1991 by Sait Akarlılar, Mavi Jeans designs and sells a collection of denim and other apparel. Mavi apparel is sold in specialty stores, department stores, and chains in 50 countries, including the United States, Germany, Australia, and Russia. The company was founded in 1991 by Sait Akarlılar, Mavi Jeans designs and sells a full operates more than 280 retail stores in many major cities; of these, six are flagship stores, including those in New York, Vancouver, and Berlin. Mavi apparel is available at more than 4,000 points of sale worldwide. Global sales reached $ 300 million in 2012, and the company has been growing about 30 percent annually in recent years.
Mavi had been manufacturing private-label jeans since 1984 for brands such as Lee, Calvin Klein, Armani, and Tommy Hilfiger. Building on this experience, Mavi, which means "blue" in Turkish, quickly became a success in Turkey due to the high-quality denim used and the fashionable designs. In 1994 the brand was introduced in Europe, and 1996 was an important year for the company, as a customs union agreement between Turkey and the European Union (EU) opened up a new era of increasing opportunities in EU countries. Although the customs agreement heated up the competition in Turkey, Mavi became the number one brand in Turkey, replacing Levi's. That same year, the company built the largest jeans production facility in Europe in Istanbul.
In 1996, Mavi entered the North American market, and not in a way one would expect from an apparel manufacturer from a developing country. Mavi was sold in high-end retailers such as Bloomingdales and Nordstrom, targeting fashion-conscious buyers. It was a challenging move; after all, jeans are as much a part of American life as Coca Cola. Sait Akarlılar, being a young Turk, knew that if Mavi succeeded in the United States, success in other markets would be easier. Although Mavi apparel carried a higher price than mainstream brands, quality and price attracted teenagers and college students. The brand gained huge visibility as the choice of Chelsea Clinton, Cher, and some MTV hosts. The company opened its flagship store in New York City in Union Square, near New York University.
In 2001, Mavi took on a move that was a first in the industry: it transferred the menu concept to fashion. Customers could order outfit combinations from menus hanging behind the checkout counters. Customers could purchase already-paired jeans, shirt, and shoes, for instance, and salespeople actually were dressed similar to service providers in a fast-food restaurant. The company has not disclosed what percentage of sales comes from menu-item sales, but the practice is still used in Turkey.