Enterprise; No. 109; Levi: Not by Jeans Alone

<v Market researcher>Is that the reason that you prefer to do it on your own? <v Market research participant>Very much so. I'm more conservative than jeans. <v Market research participant>I like to be able to buy my pinstriped suits, I must just six pinstripe suits in <v Market research participant>different colors, and that's what I like. <v Music>[into music] <v Narrator>We are watching a seldom seen ritual of modern corporate marketing. <v Narrator>The men beyond the glass are the subjects of minute scrutiny. <v Narrator>What are their habits? What makes them feel comfortable? <v Narrator>What, in short, will make them want to buy a new product that the world's largest apparel <v Narrator>manufacturer is preparing to sell to them and to you? <v Narrator>This week on Enterprise, Levi's Not by Jeans Alone. <v Eric Sevareid>I'm Eric Sevareid and I pre-date the blue jean era. <v Eric Sevareid>When I was young, they were worn only by farmers and laborers. <v Eric Sevareid>They were work clothes. <v Eric Sevareid>In the 1950s, the image of jeans began to change. <v Eric Sevareid>Marlon Brando and James Dean wore them as symbols of rebellion. <v Eric Sevareid>In the 60s, jeans emerged as a uniform of a generation, receiving a priceless <v Eric Sevareid>seal of disapproval when they were banned from schools around the country.

<v Eric Sevareid>At about that time, Levi Strauss and Company began as rather lucky rise to the top of its <v Eric Sevareid>industry. Today, it's the world's largest clothing manufacturer but with <v Eric Sevareid>over 500 million pairs of jeans now in the collective American wardrobe and competition <v Eric Sevareid>from designer jeans, of all things, the market is both saturated <v Eric Sevareid>and changing. <v Eric Sevareid>This week on Enterprise, we will watch Levi Strauss attempt to end its dependance on <v Eric Sevareid>dungarees before the fashion fad of the century begins to fade away. <v Narrator>San Francisco, home of Levi Strauss and Company, <v Narrator>the largest apparel manufacturer in the world. <v Narrator>In 1980, Levi grossed 2.8 billion dollars, over <v Narrator>50 percent from jeans. <v Narrator>Levi, a recently produced its two billionth pair of jeans sales have grown <v Narrator>an average of 23 percent each year for the last decade.

<v Narrator>But no corporation believes in limits to growth. <v Narrator>Staying the same size is commercial blasphemy. <v Narrator>The jeans market is saturated. <v Narrator>For Levi, the question is what next? <v Narrator>This is Peter Hass, Jr, Harvard MBA, son of Levi's chief <v Narrator>executive officer, and the great, great grand nephew of Levi Strauss himself. <v Narrator>In June of 1980, Hass became general manager of a new marketing division <v Narrator>created specifically to introduce the most expensive and formal clothing ever to <v Narrator>carry the Levi name. <v Peter Hass>How many are we-. <v Narrator>The marketing director for launching the new product is Steve Goldstein. <v Narrator>Goldstein, Yale '61, has marketed everything from ultrasonic plastic <v Narrator>welding equipment to liquid yogurt to cold capsules. <v Narrator>He's been with Levi for 5 years. <v Narrator>Hass and Goldstein are charged with extending Levi Strauss and Company's name into

<v Narrator>a different and lucrative segment of the menswear market. <v Steve Goldstein>Levi's is in all kinds of businesses today. <v Steve Goldstein>We make shirts, hats, socks, belts, skirts, glasses, <v Steve Goldstein>all of them are in moderate price points. <v Steve Goldstein>If we want to grow, we're probably going to have to go to upper moderate price points and <v Steve Goldstein>somewhat higher taste levels for our products. <v Peter Hass>In order for a company like Levi Strauss to extend its sales and profit growth, <v Peter Hass>we need to diversify, to develop new products, and this a lot more difficult <v Peter Hass>than it was when we're just filling demand for a 5 pocket Western jean. <v Narrator>Filling an existing need is one thing. <v Narrator>Uncovering new needs is another. <v Narrator>Levi Strauss has spent millions attempting to predict consumer behavior. <v Narrator>Hass and Goldstein's new product is not based on hunch, but on an extensive <v Narrator>market segmentation study involving over 2000 consumer interviews. <v Steve Goldstein>We took apart the men's market about 18 months ago and examined <v Steve Goldstein>5 basic segments within it.

<v Steve Goldstein>And we really understood what's going on within each one of those 5 segments. <v Steve Goldstein>The Q3 segment we call the hutilitarian jeans customer. <v Steve Goldstein>This guy's are all familiar Levi's loyalist. <v Steve Goldstein>He doesn't care much about clothes and he wears jeans for work and for play. <v Steve Goldstein>He's a big chunk of the men's apparel market, about 26 percent. <v Steve Goldstein>Q4 we call trendy casual. <v Steve Goldstein>He's basically your John Travolta type. <v Steve Goldstein>He buys high fashion brands. <v Steve Goldstein>He loves to be noticed. <v Steve Goldstein>He may wear jeans to work, but he really comes to life after dark. <v Steve Goldstein>The Q4 occupies 19 percent of the market. <v Steve Goldstein>The Q5 customer we've all seen he's a price shopper. <v Steve Goldstein>His main concern is the price of his goods.

<v Steve Goldstein>He shops at department stores and discount stores, wherever the bargains are best. <v Steve Goldstein>And we come to the 2 largest segments of the pie, the Q1, <v Steve Goldstein>our mainstream traditionalist. <v Steve Goldstein>The Q1 loves polyester. <v Steve Goldstein>He's probably over 45 years old, married, hardcore department store shopper, <v Steve Goldstein>most likely he's a conservative, both in his political views and in his tastes. <v Steve Goldstein>He likes to shop with his wife and he values her opinion. <v Steve Goldstein>He really is the heart of our Levi's actions slack and Levi's action suit <v Steve Goldstein>business, which at the moment makes up a good portion of all of the sales for the men's <v Steve Goldstein>wear division. <v Steve Goldstein>The most significant thing about the men's wear segmentation study was the uncovering <v Steve Goldstein>of this Q2 segment. <v Steve Goldstein>We call it the classic independent.

<v Steve Goldstein>The classic independent is a fascinating animal. <v Steve Goldstein>He's a real clotheshorse. <v Steve Goldstein>He spends more on his clothes than any other group. <v Steve Goldstein>He buys 46 percent of the wool and wool-blended clothing sold. <v Steve Goldstein>Yet he's only 21 percent of the market. <v Steve Goldstein>Looking right is real important to him. <v Steve Goldstein>His dress is traditional, lapels are never too wide and never too narrow. <v Steve Goldstein>He really likes to shop and he really likes to shop alone, not with his wife or his <v Steve Goldstein>girlfriend. <v Steve Goldstein>He knows what he likes and he goes to specialty stores to buy it. <v Steve Goldstein>We're going after this guy tooth and nail. <v Narrator>And the bait? A full line of tailored clothing for men, slacks, <v Narrator>sport coats and most notably, 3 piece suits.

<v Narrator>The suits will be sold as separates. <v Narrator>Jacket, slacks and vest can be selected by the customer <v Narrator>in his correct size, eliminating the need for tailoring. <v Narrator>The cut will be traditional, non faddish. <v Narrator>The fabrics will be wool and wool blends in conservative colors and patterns. <v Narrator>30 to 45 dollars for the slacks. <v Narrator>85 to 100 for the jackets. <v Narrator>And the 3 piece suit will retail for about 160 dollars. <v Narrator>Just what the target consumer, the Q2, should be looking for. <v Narrator>The man in charge of design and production of the new line is Steve Schwartzbach, <v Narrator>a garment industry veteran from New York. <v Narrator>In August 1980, 1 year before Levi's Tailored Classics will be in the stores, <v Narrator>Schwartzbach bring samples from other manufacturers to serve as models for prototype

<v Narrator>garments. <v Garment analyst>Are you gonna make this garment? <v Steve Schwartzbach>Yeah, that's 1. Now we want a belt loop garment, which is basically the todd. <v Steve Schwartzbach>Okay, except that we want to drop the watch pocket. <v Steve Schwartzbach>So it's a todd. Well, I shouldn't say it's a todd because actually there's <v Steve Schwartzbach>no simulated top stitching. <v Narrator>A vital part of Levi's strategy is selling in department stores for volume sales, <v Narrator>not in specialty stores where Q2 consumers habitually shop. <v Narrator>The sales manager for Tailored Classics, George McGoldrick, has the formidable task <v Narrator>of selling this new approach to department store buyers. <v Narrator>The success of the line rests ultimately on the shoulders of McGoldrick and his 12 <v Narrator>salesmen. <v George McGoldrick>Well, the sales force is extremely excited. <v George McGoldrick>They've been very antsy to get going with this concept. <v George McGoldrick>And they know we have something that's potentially going to be some <v George McGoldrick>very large business down the road to come.

<v Commercial>In 1850- <v Narrator>A television commercial will be crucial to the campaign. <v Narrator>But the message will need to be very different from the casual image that has appealed so <v Narrator>successfully to the Q3 segment. <v Narrator>The jeans wearers. These ads mirrored the values held by young <v Narrator>consumers in the 70s. <v Narrator>Nonconformity and doing your own thing. <v Commercial>There was a stranger who came into our town. He was tall, and had eyes that could look right to <v Commercial>the bottom of you. <v Commercial 2>Yeah, we're different, you and I, but aren't we different the same? <v Commercial 3>We put a little blue jean in every-. <v Narrator>The commercial for Tailored Classics must be ready for September of '81 to <v Narrator>coincide with the introduction of the line. <v Narrator>It will be carefully designed to appeal to the Q2 consumer. <v Steve Goldstein>It will definitely not have a woman, in the commercial, <v Steve Goldstein>along with him as a as a support for for his purchase, that would <v Steve Goldstein>antagonize this guy. We know that.

<v Steve Goldstein>He doesn't want to have somebody telling him that he looks good or he doesn't look good. <v Steve Goldstein>There's an awful lot of of research under underlayment that has <v Steve Goldstein>to go on. And it is, it's going on right now. <v Goldstein or Shumann>He's a Q2. He's a real ?inaudible? The other guys Q 1 plus or Q 2 minus. <v Narrator>In November 1980, the tailored classic's marketing team gathers behind a one <v Narrator>way glass to watch their target consumers being interviewed. <v Malcom Baker>Buy most of your clothes on your own or? <v Malcom Baker>?inaudible? statements ?inaudible? were read out over the phone was whether you prefer <v Malcom Baker>to shop on your own. <v Market research participant 2>I prefer to shop on my own. I don't always have a choice I want. <v Narrator>The discussion leader is Malcolm Baker, an independent research consultant. <v Narrator>The consumers are paid 20 dollars to participate. <v Narrator>They all match the Q2 profile in a preliminary telephone interview. <v Market research participant>-and I don't agree on what I should wear very often. <v Malcom Baker>Is that, is that the reason that you prefer to do it on your own?

<v Market research participant>Very much so. I'm more conservative than she is, and I like <v Market research participant>to be able to buy my pinstripe suits. I must have 6 pinstripe suit of different colors, <v Market research participant>and that's what I like. <v Goldstein or Shumann>All right, that's our boy. <v Narrator>Goldstein and advertising manager Leslie Shumann have arranged consumer <v Narrator>discussions known as focus groups in New York and Atlanta, as well as here <v Narrator>in San Francisco. <v Malcom Baker>The basis of the discussion is a fairly new <v Malcom Baker>concept in men's clothing. <v Malcom Baker>This is a full line of traditionalist style men's suits, <v Malcom Baker>slacks and blazers made of a natural and blended fabric. <v Malcom Baker>The clothes are reasonably priced and they require no tailoring. <v Malcom Baker>What are your reactions? <v Market research participant 3>There's a big difference between something that you <v Market research participant 3>take off the rack and something that you can have a little something done to it. <v Market research participant 3>You can spend 30 dollars for something you can walk out of the store with, but you can <v Market research participant 3>spend 45 and having a little tailoring on it, and it looks terrific.

<v Market research participant 3>You spend 15 more and look like something. <v Malcom Baker>You know what? <v Market research participant 3>Oh, You're damn right. <v Goldstein or Shumann>They do not want to feel mass-produced, if they are mass-produced, <v Goldstein or Shumann>it's the last thing they want to be reminded of. <v Goldstein or Shumann>They're willing to put it on and compromise at the rack, but they don't want to be told <v Goldstein or Shumann>that they can feel they can just be fitted just like millions of others. <v Goldstein or Shumann>In their minds that it cannot be done, so it goes back to the ritual significance of <v Goldstein or Shumann>having a tailor there and making a few adjustments that make it your own thing so that <v Goldstein or Shumann>your blue pinstripe is your blue pinstripe and it's not the same as mine. <v Goldstein or Shumann>We should stress the idea that ?inaudible? separates. We can make the top-. <v Goldstein or Shumann>For you. <v Goldstein or Shumann>A suit for you because the top fits your top and our bottom fits your bottom. <v Malcom Baker>Final peel away tells us that this line of clothing <v Malcom Baker>will be made by Levi. <v Narrator>The party like atmosphere in the booth changes abruptly. <v Narrator>The use of the Levi name is a critical issue.

<v Malcom Baker>So the idea of Levi producing a line of traditional <v Malcom Baker>is styled men's slacks and blazers. <v Malcom Baker>That works, does it? You feel that Levi would do that well? <v Goldstein or Shumann>The travel agent is not so sure. <v Goldstein or Shumann>He's not happy. <v Market research participant>When I think Levi, I, you know, I think jeans, if they're making suits, <v Market research participant>I have to be convinced. <v Malcom Baker>What about a jacketl? <v Market research participant>Slacks are okay. <v Malcom Baker>What about blazers? <v Malcom Baker>Sort of thing that Jack is wearing would you see? <v Market research participant 4>I don't believe they'll- <v Market research participant>That would be hard- that would be easier to convince me than suits. <v Goldstein or Shumann>We hear the same thing-. <v Goldstein or Shumann>Over and over. <v Goldstein or Shumann>It's got to be right. <v Goldstein or Shumann>Really. <v Goldstein or Shumann>It's got to be right. <v Goldstein or Shumann>Slacks and blazers are the way we start. <v Narrator>While consumer research continues, George McGoldrick is on the road presenting the <v Narrator>concept of Tailored Classics to retailers. <v Narrator>Stores need to place orders by February to ensure delivery in August. <v Narrator>And the salesmen are eager to get started. <v George McGoldrick>The only concern they have right now is, is one of price. <v George McGoldrick>We're going into a a tough year economically, and

<v George McGoldrick>we're hoping that the consumer will see the value of our garment and be <v George McGoldrick>willing to pay the price. We don't think we're going to have that much of a problem <v George McGoldrick>selling it to the retailer. <v Narrator>In early December, a sample from the factory is ready for approval by Steve Schwartbach. <v Steve Schwartzbach>Feel big on you? <v Suit trial run wearer>It feels large on me. <v Suit trial run wearer>I have an awful lot of room. around the middle. <v Steve Schwartzbach>I think in front of the coat is a little big. <v Steve Schwartzbach>That seems to be-. <v Garment analyst>The back is perfect. <v Steve Schwartzbach>Yeah. I think you have to take that front a little bit. <v Steve Schwartzbach>Fewer in the market for a navy blue pinstripe suit, and we made these adjustments. <v Steve Schwartzbach>You think that could be something you'd be inclined to buy? <v Suit trial run wearer>Absolutely. <v Another trial run wearer>Sure. <v Steve Schwartzbach>You in the market for a navy blue pinstripe? <v Suit trial run wearer>Always in the market. <v Narrator>But it's not just any navy blue pinstripe suit. <v Narrator>It's a Levi's suit. And consumer perception of the Levi name is a prime <v Narrator>topic when the Tailored Classics team meets for a debriefing with a focus group leader. <v Malcom Baker>We had people saying, well, if I mean, I, if I wore a suit and I went

<v Malcom Baker>to work and, and someone said to me, hey, that's a nice suit, Joe, whose suit is it? <v Malcom Baker>And I said, Levi, I would not feel comfortable. <v Malcom Baker>And I think it has it has a lot to do with with image and with and with convention, <v Malcom Baker>rather than the belief that Levi is not capable of making a suit that would function <v Malcom Baker>perfectly well and it would look all right. <v Peter Hass>So you're saying that maybe they would feel very comfortable about wearing it as long as <v Peter Hass>they put someone else's label in it? <v Malcom Baker>Yes. Yes. <v Peter Hass>What does that lead you in terms of where we- what we should be doing <v Peter Hass>in terms of that? <v Peter Hass>The message, or? <v Malcom Baker>Well, I can talk, I'm going to talk about message <v Malcom Baker>in a minute, but my basic recommendation at the moment is lead with <v Malcom Baker>slacks, sports coats, and let suits slipstream <v Malcom Baker>with the Levi image as it's, it's currently is with this segment, however positive, <v Malcom Baker>I think the image is still a little too casual.

<v Peter Hass>You're absolutely right. <v Steve Goldstein>The thing that's going to overcome the Levi's image for casualness <v Steve Goldstein>as no other thing can do, is a suit that's made by Levi. <v Steve Goldstein>That doesn't look like all the other stuff we've made. <v Steve Goldstein>And once it gets in on the shelves or on the racks, there are gonna be a lot of people <v Steve Goldstein>who will put a little asterisk on the Levi's image, which says, oh, and also <v Steve Goldstein>they they can make a good suit when they when they put their mind to it. <v Narrator>December 15, the selling of Levi's Tailored Classics begins. <v Narrator>Schwartzbach presents the line to buyers from Weinstock's department stores. <v Steve Schwartzbach>Continuing along in the same vein, is our expression twill. <v Steve Schwartzbach>Stretched, brushed, done in a whole host of colors, <v Steve Schwartzbach>including basics-. <v Narrator>After the buyers are shown the entire Tailored Classics line, the talk turns <v Narrator>to Levi's wholesale prices. <v Steve Schwartzbach>Here, here and here. <v Steve Schwartzbach>You're talking 15.90 for the slack and you're talking 43 dollar for the coat. <v Steve Schwartzbach>Here-

<v Narrator>Wholesale prices are higher than Weinstock's had anticipated. <v Narrator>Retail prices will need to follow suit. <v Weinstock's associate>Big jump for the customer. Last year we were at twenty eight dollars on this slack. <v Peter Hass>I just, I have to be leaving in a couple of minutes. <v Peter Hass>I just wanted to come in and find out any observations or questions-. <v Narrator>Pete Hass is acutely aware that Tailored Classics are priced higher than the competition. <v Narrator>He is beginning to feel nervous about his first new product launch with the company and <v Narrator>is anxious for firm commitments to buy. <v Peter Hass>When do you think you'll be giving us paper actually making <v Peter Hass>selection in order just so that we know? <v Weinstock's associate>Within 30 days, we'll see. Jeff, you'll be finished up with all the-. <v Peter Hass>Before then do you think? <v Weinstock's associate>Offer is essentially by February first. <v Commercial woman>Mel! You got to get a new suit by Saturday. <v Commercial man>No problem. <v Narrator>Levi's Tailored Classics is not the only game in town. <v Narrator>A very similar line of clothes is offered by Haggar. <v Commercial 4>Introducing Haggar Imperial separates for the no problem suit and 100 percent Wool and

<v Commercial 4>Wool blend. <v Narrator>Haggar's ad is not aimed at the Q2, but at the more casual dresser who needs a suit <v Narrator>for special occasions. <v Commercial wo>Mel, Mel! <v Narrator>And Haggar speaks from experience. <v E.R. Haggar>We've been in this business since 1926. <v E.R. Haggar>We make all of our own products. <v E.R. Haggar>We control our quality and our track record, unlike <v E.R. Haggar>our friends that you imagine, they're a fine firm, but they were making another type of <v E.R. Haggar>product completely different from what they're making. <v Narrator>Levi's venture into finer clothing is certainly a risk. <v Narrator>And initial sales are not encouraging. <v Narrator>After months of optimism, doubts begin to surface. <v Steve Goldstein>I think about this a lot. <v Peter Hass>You do? You dream about it? <v Steve Goldstein>No, I don't dream about it. But I do think about it. <v Steve Goldstein>And that is we really have 1 shot at this. <v Steve Goldstein>I mean, everything we do <v Steve Goldstein>relative to this line has to be right.

<v Steve Goldstein>Everything. I mean, if we could only- <v Peter Hass>Hundred of thousands of retailers were saying this would bring the doors down. <v Narrator>January 5th, 1981. <v Narrator>McGoldrick is having a tough time. <v Narrator>Money is tight. Department stores are cautious. <v Narrator>And the salesmen are getting discouraged. <v George McGoldrick>Okay, listen, as much as we need to book those goods. <v George McGoldrick>I think you still have to get to Detroit. <v George McGoldrick>We've got to, we've got to get placement in Detroit right away. <v George McGoldrick>You can call ,you can call Dayton from there. <v George McGoldrick>And if they're not willing to give you a paper right away, then maybe I can call them. <v George McGoldrick>Maybe next week I'll even come in. <v Narrator>Despite slow sales, pattern layout and cutting begin at the factory in San Antonio. <v Narrator>Levi's contract with Burlington Mills gives option dates by which additional fabric <v Narrator>must be ordered. If sales don't improve soon, the February 1st

<v Narrator>option will not be exercised. <v Narrator>By late January, the sales picture is worse. <v Narrator>2 of McGoldrick's sales reps have quit the line. <v Narrator>They aren't selling enough to make their commissions. <v Narrator>High prices are blamed and McGoldrick is feeling frustrated. <v George McGoldrick>Oh, I think it's a lot of emotions. <v George McGoldrick>From wanting to punch someone in the mouth to wanting to leave and never come back. <v George McGoldrick>Hello? <v George McGoldrick>Hey, Mike. <v George McGoldrick>How you doing? <v George McGoldrick>I would spend the day here or spend a week on the road and come home <v George McGoldrick>and get a call at 11 o'clock at night. <v George McGoldrick>You know, damn it, I can't do this. I can't do that. <v George McGoldrick>You know, this one's throwing me out. I want to leave, you know, and then you got to say, <v George McGoldrick>now calm down and you end up talking to people half the night to keep them <v George McGoldrick>going because they have to get up and go out the next day. <v George McGoldrick>Listen, pal, your number 2 in the whole region.

<v George McGoldrick>You've done a phenomenal job. You've been thrown out of accounts before. <v George McGoldrick>We all have. <v George McGoldrick>Listen, this is 1 tough season. <v Narrator>Something had to be done on the morning of January twenty ninth. <v Narrator>After much debate, Pete has made a desperate move. <v Narrator>Daily News Record, the trade paper of the garment industry, carried the news. <v Narrator>Wholesale prices were dropped 4 to 7 percent, and McGoldrick took immediate action. <v George McGoldrick>The biggest department store in the United States is Bamberger's, which is part of <v George McGoldrick>the Macie organization. <v George McGoldrick>They, I knew, were going to pass us and they are big. <v George McGoldrick>They were going to Dallas, Texas, to work with with our competition <v George McGoldrick>and place orders, and the day that Pete <v George McGoldrick>got authority to roll back the prices, I caught a 1 a.m. <v George McGoldrick>plane to Dallas, found these people in their hotel eating breakfast at 7 <v George McGoldrick>in the morning. 10 minutes before our competition sent the limousine to pick <v George McGoldrick>them up and saved the day.

<v George McGoldrick>I felt like the cavalry coming. <v George McGoldrick>But they flew right from Dallas to San Francisco and they gave us about, <v George McGoldrick>good golly, it must have been 3, 4 hundred thousand dollars worth of goods. <v Narrator>March 10th, the first selling season is over. <v Narrator>The Tailored Classics team flies to Los Angeles for the menswear trade show called Magic. <v Narrator>Magic is an opportunity for thousands of manufacturers and retailers to get together, <v Narrator>to display new products, to make deals and to celebrate sales successes. <v Music>[Man singing] <v Narrator>Haggar had done well. <v Narrator>Sales of their Imperial line had more than tripled in the past year, <v Narrator>but the Tailored Classics team is not celebrating.

<v Narrator>Despite the price rollback, they've achieved only 65 percent of their modest sales <v Narrator>goals. <v Narrator>Tailored Classics are not being prominently displayed at Levi's exhibit. <v Narrator>The emphasis in the menswear division has shifted to a new line of washable polyester <v Narrator>suits. <v Narrator>This line is seen by Levi's senior management as having more immediate profit potential. <v Narrator>Bob Siegel, Pete Hass' boss, is losing confidence entailed classics. <v Narrator>He has canceled plans for the television commercial and put all research on hold. <v Narrator>Hass and Goldstein are fighting to keep the line alive. <v Narrator>1 of the major stumbling blocks is the Levi name itself,. <v Steve Goldstein>The questino of the applicability of the name to better merchandising, is an unknown. <v Steve Goldstein>And we'll never know that by just talking to retailers. <v Steve Goldstein>Never. <v Peter Hass>And I'd like to get it out and get it settled. <v Peter Hass>I'd like to find out that it can't be. <v Peter Hass>It doesn't work, if this does not work with the consumer.

<v Narrator>Upon returning from Magic, they decide to confront the dissonance between a casual <v Narrator>Western image and elegant clothing head on. <v Narrator>The agency prepares an ad for the Sunday New York Times magazine for September <v Narrator>'81. Levi's Tailored Classics, you expected rivets, perhaps. <v Ad analyst>I love the juxtaposition of a horse and an elegant man. <v Ad analyst>And of you expected rivets, rivets, perhaps because of Levi's and and <v Ad analyst>you have-. <v Steve Goldstein>It confronts that issue directly. <v Narrator>So the selling of Levi's tailored classic's moves forward, but at a walk. <v Narrator>Not a gallop. There will be no big television commercial, <v Narrator>but the newspaper ad will run in New York. <v Narrator>They will feature a sport coat, not a suit right here. <v Narrator>They will try to gradually warm up retailers to their ideas and await the verdict <v Narrator>from the consumer. <v Steve Goldstein>I would be much happier if if this new business of ours had taken off

<v Steve Goldstein>and flown brilliantly. <v Steve Goldstein>But, you know, that's, that's business. <v Steve Goldstein>Most new products fail. <v Steve Goldstein>Most new products fail. <v Peter Hass>One feels a responsibility. <v Peter Hass>Would have liked to have done better than we did. <v Peter Hass>I would have liked to have had 20/20 foresight instead of 20/20 hindsight. <v George McGoldrick>I don't see how we can come in like the Messiah and teach <v George McGoldrick>people how to make money that nobody else can because we're new in the business, too. <v Steve Schwartzbach>But I think this, that if you never take a chance, you'll never have a success. <v Steve Goldstein>You win some and you lose some. <v Narrator>In July '81, George McGoldrick resigned after 16 years with Levi <v Narrator>Strauss. He was unhappy with trying to sell better clothing with the Levi name. <v Narrator>He is now a national sales manager at R.P.M. <v Narrator>a pants manufacturer in New York. <v Narrator>Pete Hass has a new position. <v Narrator>He has been assigned to the office of Levi's chief operating officer. <v Narrator>Steve Schwartzbach now has primary responsibility for Tailored Classics.

<v Narrator>It's really his baby now. <v Narrator>Steve Goldstein has been spending considerable time marketing the washable polyester <v Narrator>suits. He is every bit as enthusiastic about that as he was <v Narrator>about Tailored Classics. <v Steve Goldstein>I can get enthusiastic about almost anything. You know, I can get enthusiastic about a <v Steve Goldstein>cheeseburger. <v Music>[Classical outtro music]. <v Narrator>As of November, 1981, consumer response to Levi's Tailored Classics <v Narrator>is mixed. Sport coats and slacks are selling well, but suit separates <v Narrator>are moving slowly. <v Announcer>This program was presented by WGBH TV, which is solely responsible for its content

<v Announcer>and was made possible by grants from the Dun and Bradstreet Corporation, Merrill <v Announcer>Lynch Pierce Fenner and Smith, Inc., Charles E. <v Announcer>Culpeper Foundation, the Arthur Vining Davis Foundations. <v Announcer>The William and Mary Greve Foundation, the George Gund Foundation and Arthur <v Announcer>D. Little Inc..