Marketing Levis Final

8/8/2019 Marketing Levis Final

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IINNTTRROODDUUCCTTIIOONN::

Levi Strauss & Co. (LS&CO.) is one of the world's largest

brand-name apparel marketers with sales in more than 110 countries. There is no

other company with a comparable global presence in the jeans and casual pants

markets. Today, the Levi's trademark is one of the most recognized in the world

and is registered in more than 160 countries. The company is privately held by

descendants of the family of Levi Strauss. Shares of company stock are not publicly

traded.

The company employs a staff of approximately 8,850 people worldwide, including

approximately 1,000 people at its San Francisco, California headquarters. Levi

Strauss & Co currently makes jeans in approximately 108 sizes and 20 finish

fabrics. With 2007 net sales of $4.1 billion, the company is committed to building

upon strong heritage and brand equity as they position the company for future

growth.

VVAALLUUEESS::

Levi Strauss & Co. has four major core values. These are

y -Empathyy -Originalityy -Integrityy -Courage

Levi Strauss & Co. says,

OOuurr ccoorrppoorraattee vvaalluueess ---- eemmppaatthhyy,, oorriiggiinnaalliittyy,, iinntteeggrriittyy aanndd ccoouurraaggee ---- aarree tthhee

ffoouunnddaattiioonn ooffoouurr ccoommppaannyy aanndd ddeeffiinnee wwhhoo wwee aarree.. TThheeyy uunnddeerrlliiee hhooww wwee ccoommppeettee

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MMIISSSSIIOONNSSTTAATTEEMMEENNTTThe mission of Levis Strauss & Co. is to sustain responsible commercial; success as

a global marketing company of branded apparel.We must balance goals of superior profitability and return on investment,

leadership market positions, and superior products and services. We will conduct

our business ethically and demonstrate leader ship in satisfying our responsibilities

to our communities and to society. Our work environment will be safe and

productive and characterized by fair treatment, teamwork, open communications,

personal accountability and opportunities for growth and development.


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AASSPPIIRRAATTIIOONNSSTTAATTEEMMEENNTT::They want a company that make them proud of and committed to, where all

employees have an opportunity to contribute, learn, grow and advanced based on

merit, not politics or background. They want their people to feel respected, treated

fairly, listened to and involved. Above all, they want satisfaction from

accomplishments and friendships, balanced personal and professional lives, and to

have fun in our endeavors.

VVIISSIIOONNSSTTAATTEEMMEENNTT::When LS & Co. describe the future of Levi they are talking about a building on the

foundation they have inherited: affirming best of their Companys tradition, closing

gaps that may exist between principles and practices and updating some of theirvalues to reflect contemporary circumstances.

HHIISSTTOORRYY

Today, the Levis brand is an authentic American icon, known the world over.

Levi Strauss started it 150 years ago & forever earned a place in history. In 1847,

Levi Strauss, his two sisters & mother sailed for America where they joined half-

brothers Jonas & Louis in New York. Levi joined their dry goods business. In 1853,

Levi sailed to San Francisco to join dry goods business and started selling clothing,

bedding & linen to small stores in California.

In 1902, Levi died and his two nephews inherited the business. In 1910s, LS&CO.

received Blue Ribbon highest award for waist overalls in Panama. One-piece

garment for women was introduced to work and play. In 1930s, the Great

Depression stroke & demand for Levis jeans, shirts and jackets declined.

.

In 1991, the first original Levis store was opened in United States. In 1994, Dockers

brand was introduced in Europe. It launched its first website in 1995.In 1996; it

introduced its Slates brand, a new style for men wearing. In 1999, classic 5 pocket

pants were reinvented.

In 2000, LS&CO. introduced Levis engineered jeans TM, the reinvention of

jeans for the new generation. It named No. 2 for Americas best companies for

minorities. In 2003, it celebrated its 150th anniversary of its founding and 130th

anniversary of invention of blue jeans.


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Advertising professionals realize that the heart of any campaign is the product and

the position it holds in people's minds. Products and their brand names are

newsmakers themselves. Understanding the complexities of a brand identity and its

position is no easy task.

One of the most controversial areas of product concepts is the brand extension. A

new product gets to share the name of an older, established brand. Early theorizing

suggested that brand extensions would sap market clout from the established

product, but these fears proved groundless. Today brand extensions occur not only

within the company, but companies are licensing their brand names to all kinds of

products in the hope of increasing brand awareness.

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Like other successful companies, Levis also has realized that the marketing

environment presents a never-ending series of opportunities and threats. The major

responsibility for identifying significant changes in the macro environment falls to a

companys marketers. More than any other group in the company, the marketing

managers of Levis are the trend trackers and opportunity seekers.

Many opportunities are found by identifying trends (directions or sequences

of events that have some momentum and durability) and mega trends (major social,

economic, political and technological changes that have long-lasting influence).

Within the rapidly changing global picture, the marketers of Levis are

monitoring the following six major Environmental Forces:

Demographic Environment Economic Environment Natural Environment Technological Environment Political-Legal Environment Social-Cultural Environment

MMaarrkkeettSSeeggmmeennttaattiioonnMarket segmentation is the selection of groups of people who will be most

receptive to a product. The most frequent methods of segmenting include

demographic variables such as age, sex, race, income, occupation, education,

household status, and geographic location; psychographic variables such as life-

style, activities, interests, and opinions; product use patterns; and product

benefits. Much segmentation involves combinations of these methods. No matter


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how segments are defined, however, they are characterized by considerable

change over time. The readings in this section exemplify areas of rapid change.

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Demographic Segmentation Geographic Segmentation Psychographic Segmentation Behavioral Segmentation

TTaarrggeettMMaarrkkeett::501 JEANS targets its market by evaluating the wants of customers. Mostly Levis

targets its market among the following classes:y Upper Classy Upper Middle Class

TTaarrggeettMMaarrkkeettSSttrraatteeggyy::Target market strategy adopted by Levis is basically on having long-term relations

with their customers and to provide them with better product.

BBeenneeffiittssooffSSeeggmmeennttaattiioonn::Levis has got customer oriented approach by segmentation.

Company is promoting its products effectively within segments by

print media as well as electronic media, e.g. Newspapers, Signboards,

Television commercials, Internet, etc.

Company is providing their customers with stylish better quality and

different product keeping in view its cost.

CCoonnddiittiioonnssffoorreeffffeeccttiivveesseeggmmeennttaattiioonn:501 JEANS is fulfilling the conditions for effective segmentation.

Segments are strong enough to make profit.

Segments of company are measurable.


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LLiimmiittaattiioonnooffSSeeggmmeennttaattiioonn::Because of segmentation, Levis faces some limitations.

Lack of awareness in middle class.

Company has to pay extra cost for multi-advertisement.

In India they have to face several Cultural Barriers.

MMaarrkkeettiinnggRReesseeaarrcchh::According to Levis marketing logistic manager, their company conducts a research

to know

y Whats in trend?y What are the needs of customers?

SSoouurrcceessooffDDaattaa:Levis gathers data from both primary and secondary sources. Secondary data is

already available in the company. To gather primary data, they organize radio

shows and music concerts by sponsoring.

MMAARRKKEETTIINNGGMMIIXX::

The marketing mix is the set of marketing tools the firm uses to pursue

its marketing objectives in the target market. Marketing-mix decisions must be

made for influencing the trade channels as well as the final consumers.

McCarthy classified these tools into four broad groups that he called the

four Ps of marketing: product, price, place and promotion.

Note that the four Ps represent the sellers view of the marketing tools

available for influencing buyers.


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Product Place

Product variety Channels

Quality Coverage

Design Assortments

Features Locations

Brand name Inventory

Packaging Transport

Sizes Prices Promotion

ServicesWarranties List price Sales promotion

Returns Discounts Advertising

Allowances Sales force

Payment period Public relations

Credit terms Direct marketing

PPRROODDUUCCTT::Product means set of tangible and intangible attributes which may include

packaging, color, price, quality and brand plus the sellers services and reputation.

A product may be a place, service, good or promotion.

BBRRAANNDDSS

Brand is a name, term, sign, symbol or design that adds value to the products. LS &

CO. earns remarkable revenues throughout the year coz its products are considered

to be the worlds largest quality products.

LS & CO. is basically divided into 3 sub brands i.e. Levis, Dockers and Levis

Strauss Signature. All the three brands are providing different quality products.

Marketing

mix

Target market


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Following are some of the basic attributes of LS&CO.S products:

Variety Features Design Color Size

VVAARRIIEETTYY

Levis products today are perceived by many as a symbol of youth, freedom,

confidence, individualism, independence & comfort. LS & CO. provides a wide

variety of products including :

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FFEEAATTUURREESS::

Features are competitive tools that differentiate the companys products from its

competitors products. Following are some of the main and distinctive features of

Levis products.

Comfort

Levis jeans and other products are comfortable enough to be worn even at the

times of protest, war, cultural revolution, relative peace and pure fun.


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Durability

The two figures on the patch of Levis jeans with whips in hand pulling in opposite

directions, yet the jeans remain intact; symbolize the strength and durability of the

Patent riveted clothing.

Style

Clothing means more than just fabric, thread and rivets. To clothe oneself means to

put on something that symbolizes who you are. Levis jeans are available in

different styles for men and women.

PPRRIICCEE::It can be simply defined as:

The currency value charged to a Client by the company for a product or service.

Is one of the most important elements of the marketing mix, as it is the only mix,

which generates a turnover for the organization. The remaining 3p's are the

variable cost for the organization. It costs to produce and design a product, it coststo distribute a product and costs to promote it.

ListPrice:

All products are sold at listed price, which are settled by the Levis Company

(Singapore). There is no discount to offer.

CreditSales:Also deal with credit sales, but doesnt overcharge to the customers, pay

themselves to the bank (3 %). Products are only sold for cash or on credit cards.

Discount:Dont give the discount to our customers, even to the employees of the

Levis. The prices are fixed.


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PaymentPeriod& CreditTerms:Payment Period & Credit Terms are settled by the company.

PriceDetermination:During the determination of the price, company does notconsider the competitors, but the standard that is used is considered

The price is influenced by the following factors:-

Cost of the product Affordable for the target market Demand of the product Uniqueness and innovative features of the products

Competitors:

The products completely satisfy the consumers, thats why Levis doesnt face

much competition in their business. But yet there are some competitors e.g.

Pepe Jeans Leeds (US Apparels) GAAP Jeans Cambridge

y Their prices are not influenced by the competitors.y The stuffs, design and fashion which dont have the enough sales are

recalled back to the company. Again company issues this stuff to their own

outlets for sale at discount prices on 14 August.

PPLLAACCEE::PP

llaacceemmeennttoobbjjeeccttiivveess::-

-..

y To equalize the demand and supply of products at all places.y To provide desired products at proper place.y To fulfill the requirements of every locality according to the taste

of the people.

y To increase the brand equity by reaching every corner of theworld.


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CChhaannnneellss::--

Channels of Distribution:

LEVIS distributes JEANS by the Channel Members that is through retailer and

wholesalers. Levis Strategy for Choosing channels is according to Product: MostlyLevis is limited to his wholesalers, because the unit value is high and cost related

issues occur.

SSttrraatteeggyy::

LS & CO. placed its products according to following strategies:

PlacingaccordingtoClassandAttributes:

LS & CO. Positioned its products according to different classes and genders.

PlacingaccordingtoCompetitors:

LS & CO. Keep in mind the price and quality of the products and try to make its

products better.

PlacingaccordingtoPriceandQuality:

LS & CO. introduces best quality at different prices to its clients.

PlacingaccordingtoTechnology:

LS & CO. has tried to build its image as an innovator by coming in India with their

Jeans having new and latest style and look.

LLooccaattiioonn::--The Levi's brand of products are sold in 49 countries, Dockers brand in 31

countries and our Levi Strauss Signature brand in 4 countries.

AAssiiaaPPaacciiffiicc::Australia, Bangladesh, Brunei, China, Guam, Hong Kong, India,

Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, the Philippines,

Singapore, Sri Lanka, Taiwan and Thailand.


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MMiiddddlleeEEaasstt:Bahrain, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia and

United Arab Emirates.

AAffrriiccaa::Angola, Botswana, Mozambique, Namibia and South Africa.

LLaattiinnAAmmeerriiccaa::Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El

Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay

and Venezuela.


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PPRROOMMOOTTIIOONN::

PP

rroommoottiioonnoobbjjeeccttiivveess::o To inform, persuade and remind the potential customers about its

products

o Increase awareness and build primary demando To build strong brand equity.o Build Companys image as innovator.o To create bonds between public and Levi Strauss by helping the

people.

o To create the importance of its products

SSaalleesspprroommoottiioonn::--

For the promotion of sales Levi Strauss & Co. adopt a very effective but

comprehensive strategy. Levis pays attention to the publicity of its products. The

major source of promotion of levis is done by creating public relations. The sales

promotion of LEVIS targets the end consumers. Since the Levis JEANS are in

growth stage in Inida, therefore, the promotional strategy is based on persuading of

prospective buyers.

Levis uses the following promotional strategies to promote its product.

PersonalsellingPersonal selling by the representative of the organization takes place face to face

with final consumers.

MassSellingLevis does mass selling to inform a bulk of persons by advertising.

AAddvveerrttiissiinngg::--The type of advertising is used by LEVIS.

CompetitiveadvertisingThe advertisement given by the LEVIS stresses on the demand of the product and

enhancement of its features.

Institutionaladvertising


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Levis uses institutional advertising to promote companys image by saying

Many Copy the Red Tab No One can copy the Originals.

AAddvveerrttiissiinnggmmeeddiiuummss::--

The advertising media used by the company are

Television Fashion Magazines , Newspapers Internet. Bill boards ,banners etc

Television&Radio:Advertisements of Levi Strauss & Co. are very innovative and eye-catching. Buyers

are attracted towards the product. The advertisements are placed at the

international level.

FashionMagazines& Newspapers:For fashion magazines and newspapers LS&Co. is a target due to its grand brand

equity ,it has become a benchmark for all the others to follow. The newspaper gives

a coverage to the social events in which LS &Co takes part with great interest.

Whereas fashion magazines are always dealing with the gorgeous models working

with LS& Co and the unique outfits of the models

Internet.:-Levis provides up-to-date information to their customers through electronic media

i.e. from their websites.

Billboards&banners:-Billboards and banners are also used for the advertisement purpose.

SSaalleessffoorrccee::--

Levis holds a very big sales department as it is working in many countries.

LevelofDistributionIntensity:

Levis is using selective but intensive distribution level for the distribution of its

products .

SalesOfficesandSalesBranches:

Sales offices for Levis act as a display center for their Products from where the

customers can get information about latest designs and up to date fashion


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introduced. While the actual sale of the products take place at the sales outlet of the

company.

PPuubblliiccrreellaattiioonnss::--

The sales promotion of LEVIS also includes such activities as event sponsorship.

Levi Strauss & Co. says ,

Our corporate values enable our vision of the future and reflect the

legacy of our founder, Levi Strauss, who devoted substantial time and

resources to charitable and philanthropic activities.

GGUUIIDDIINNGGPPRRIINNCCIIPPLLEESS::

There are three guiding principles present behind the global giving programs :-

-The first is a belief in empowerment - the right of women and youth to identify

their needs and to participate in solving problems that affect them.

-The second is a resolve to address social biases and their impact on youth and

women whether due to racism, xenophobia, sexism, homophobia or HIV/AIDS

status.

-The third is a commitment to work collaboratively with other funders and to

encourage joint efforts by our grantees.

IISSSSUUEESS::

These principles are applied to two interrelated issues:

PreventingtheSpreadofHIV/AIDS

In 1985 the Levi Strauss Foundation became the first U.S. corporate foundation to

address this epidemic, and has since contributed more than $26 million to

organizations in more than 40 countries. The Foundation and company-supportedprograms seek to prevent the spread of HIV/AIDS

IncreasingEconomicDevelopmentandEducationOpportunities

To alleviate poverty, individuals must have access to resources and possess the skills

to acquire and manage financial assets -- yet youth and women continue to struggle


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against social norms and financial institutions that limit this type of access and

discourage education and training. Focusing specifically on indigent women and

youth (age 10 to 25)

HHaapp

ppeenniinnggss::--

Now- a-days for promotion the following offers are present for the customers.:

1) For every purchase of Rs. 3000/ on the new brand 5 the customers get acoupon. And customers can win a new LG air conditioner.

2) 501 ScarredWhat's your story? The best story wins an iPod.

3) Levi's Lady StyleGet a Swarovski designer tattoo with every purchase of "Levi's Lady

Style"

4) Father's DayPurchase Dockers Product worth Rs.2000 and above to get a branded

Dockers Cap

TToooollssuusseeddbbyyLLeevviiSSrraauussss&&CCoo..ffoorrmmeeaassuurriinnggCCuussttoommeerrSSaattiissffaaccttiioonn::

Different tools are used for measuring the customer satisfaction. For e.g.-

Conduct different surveys just to know the views of the consumers. A very quick complaint system Ask the consumers for new ideas and their needs


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SSWWOOTTAAnnaallyyssiiss::SSttrreennggtthhss::

Levis enjoys high brand equity. People all around the world recognize thebrand name.

Levis products are unique and innovative in the style. A lot of variety is offered by Levis ranging from sunglasses to skirts and

shirts.

The products are renowned and are considered as the most durable i.e. thelong lasting products.

Levis follows a high standard of quality.

WWeeaakknneessss::

Levis products are considered as very expensive. Therefore a largepercentage of people are reluctant to buy the products.

As no discounts are present and products are sold at fixed prices manycustomers are lost.

Levis does not provide any services like free delivery etc.

OOppppoorrttuunniittiieess::

Levis can do more well in the women section. This section is give lessimportance as compared to the men section.

The kids section, which has been started from few years, should also begiven proper attention to gain customers.

Sales promotion can be increased by increasing the advertisements expensesso as to enjoy a large number of customers.

TThhrreeaattss

The threats that Levis faces are the competitors.


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CCOONNCCLLUUSSIIOONNSS AANNDD RREECCOOMMMMEENNDDAATTIIOONNSS::

CCOONNCCLLUUSSIIOONN::

Along with the collection of above data , we also did a personal survey from the

customers of Levis. A questionnaire was generated which was then distributed

among the customers. The questionnaire appeared like this:

SSuurrvveeyy::

Name(optional):

Q#1 : State the extent to which you agree with the following statement: Levis

products provides a lot of satisfaction?

Strongly Disagree Disagree Neither agree nor disagree Agree Strongly agree

Q#2 : Do you give preference to Levi products over other companys similar

products?

Very unlikely

Unlikely Neither likely nor unlikely Likely Very likely

Q#3 : What is the competitive advantage that Levis has over others?

Comfortability Brand name Durability Variety

Style Innovativeness Any other ? please specify:

Q#4: Levis lacks:

Comfortability Durability


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Variety Style Innovativeness Price Affordability Any other ? please specify:

Q#5: You mostly buy products from levis:

Men section Women section Kids section

Q#6: Please, give us your suggestions and recommendations for Levi Strauss and

Co. with out any hesitance:

Thank you for your cooperation!

By the help of above data we can conclude that Levi Strauss & Co. is no doubt a

benchmark for the jeans makers all around the world.

From the survey we got the following statistical results:

A) 60% of customers were completely satisfied

B) 17% were somewhat satisfied

C) 15% were neither satisfied nor dissatisfiedD) 5% were somewhat dissatisfied

E) 3% were completely dissatisfied

The pie chart we obtain from the data is :

60%17%

15%

5%

3%

completelysatisfied

somewhatsatisfied

neithersatisfied nordissatisfied

somewhatdissatisfied

completelydissatisfied


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RREECCOOMMMMEENNDDAATTIIOONNSS::From the survey results and the data we collected from various peoples, sites we

recommend levis to work on following areas

First of all the Levis products are considered as the most durable product.Therefore that area is secured. But the areas which levis lacks are comfort

ability and inexpensiveness.

If levis lowers down its prices to some extent the sales volume could beincreased to a very large extent. As we saw in the survey that people who are

somewhat dissatisfied or who are completely dissatisfied gave the reason of

high prices.

The brand name of Levis is well recognized. We saw in the survey resultsthat most people just to maintain their high status buy Levis products.

Levis pays its maximum attention to the mens wear. Although the womensection and kids sections are present but they are not full filling the

requirements much.

The kids section, which is just in start, should be given attention to attractmore customers.

A lot of importance should be given as far as the advertisement is concerned.They should stress on promoting their products especially through TV

media

y ********************************************

Marketing Levis Final

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