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CTSM Portfolio / Michael Mecham Page 1

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LS&Co. brands have been exhibiting at MAGIC since the mid 1900s and partnership with this key show has<br />

become important to our success operationally. It provides a great opportunity to demonstrate brand prominence in<br />

the marketplace while efficiently meeting with a multitude of buyers.<br />

However, due in part to a post 9/11 economy shift, and an emphasis on cost containment, this partnership now<br />

requires a documented return on investment analysis in order to justify an annual spend of $760,000. Toward this<br />

end, I developed and implemented an annual Return on Investment (ROI) and Return on Objectives (ROO) process<br />

in early 2006 to measure and report the qualitative and quantitative benefits of exhibiting at MAGIC.<br />

Methodology<br />

I learned from Seminar 212V – Justify Your Program With Post Show Reporting - that all results are measured<br />

against clearly defined goals and objectives. This required a comprehensive understanding of the US Levi’s®<br />

Brand objectives. The chart below lists shows objectives at MAGIC, each of which are tied to a larger brand growth<br />

strategy and include alignment from top-management.<br />

Brand<br />

Goal / Objective<br />

Red Tab<br />

1. Upgrade the Red Tab exhibit and overall brand experience<br />

2. Create conducive and inspiring meeting environments for management meetings with Top Levi’s® Wholesale Customers<br />

Red Tab / Sales Center<br />

3. Continue to make it easy for Sales Center Customers to buy Levi’s® Jeans<br />

4. Grow new account inquiries<br />

Red Tab / Licensing<br />

5. Continue to make it easy for Wholesale Customers to buy Levi’s® licensed products at MAGIC<br />

6. Continue to integrate licensed product offering into customer experience<br />

Levi’s Capital E®<br />

7. Make it easy for premium/specialty customers to buy Levi’s® Cap E, Levi’s® Vintage Clothing, & Little Levi’s® Vintage.<br />

Sponsorships<br />

8. Drive brand equity and consumption by optimizing brand exposure at the show<br />

9. Build relationships with Sales Center Customers via exclusive reception<br />

I also learned from Seminar 10806 – How To Measure The Value of Trade Shows that I needed to identify and<br />

quantify the main sources of value. including: 1. Revenue by division, 2. Cost avoidance - or expenses displaced<br />

should we not exhibit, and 3. Promotional value. Each of these sources comprehensively represent the total value<br />

for presenting at a key show like MAGIC.<br />

After rolling up the total show costs, including other team and licensee affiliate travel expenses, post show statistical<br />

information was gathered and input into the report.<br />

Results<br />

The good news is that we net a return of $13 to $19 for every $1 spent on participating in MAGIC. With the<br />

strategic goals and objectives in place, the Levi’s® Brand was rebuilt to a larger literal and perceptual size at<br />

<strong>CTSM</strong> <strong>Portfolio</strong> / <strong>Michael</strong> <strong>Mecham</strong><br />

<strong>Page</strong> 17

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