THE PROMOTIONAL CAMPAIGN FOR LEVI’S® JEAN (HONG...

THE PROMOTIONAL CAMPAIGN FOR

LEVIS JEAN (HONG KONG)

Chong Wing Sze Janet

A Project Submitted

In Partial Fulfillment of the Requirements for the Degree of

Master of Arts in Communication

Supervisor: Dr. Flora Hung

School of Communication Hong Kong Baptist University

Hong Kong August 2006

Authorization This is to authorize the School of Communication at Hong Kong Baptist University to place my project titled The Promotional Campaign for Levis Jean (Hong Kong) in the HKBU library for general public reference and inspection.

CHONG WING SZE JANET

05408318

_________________________

7 July 2006

Acknowledgement

I would like to thanks Dr. Flora Hung of Department of Communication, at Hong

Kong Baptist University. To be my supervisor of study, she has provided expert

advice and guidance throughout this study.

I would also like to express my appreciation to Paul Wong, the operation manager of

Macay Shoes & Fashion Co. Ltd which is the franchisee of Levi Strass & Co. in Hong

Kong. Although we did not have opportunity for a format interview, it is my pleasure

to have the snap chat by chance. He provided much valuable information.

In addition, it is acknowledged that without the considerable help and advice of many

individuals, this project would not have been possible.

(Chong Wing Sze Janet)

M.A. in Communication

School of Communication

Hong Kong Baptist University

7 July , 2006

TTaabbllee ooff CCoonntteenntt Executive Summary 1 Situation Analysis

Company Analysis 2 Consumer Analysis 13 Market Analysis 19 Product Analysis 22 Competitors Analysis 29

SWOT Analysis 33 Methodology 36 Profile of Target Audience 38 Objective 41 Promotional Campaign Strategies

Marketing Strategy 42 Public Relations Strategy 49 Media Strategy 52

Campaign Evaluation 57 Conclusion 59 Remarks 60 Reference 61 Appendix

Appendix 1 Questionnaire Appendix 2 SPSS results of the Questionnaire Appendix 3 Previous Promotional Mix of Levis Jean Appendix 4 Magazine Readership Profile Appendix 5 Name card of Paul Wong

LLiisstt ooff TTaabbllee Table 1 The gender of the respondents Table 2 The age of the respondents Table 3 The working status of the respondents Table 4 The level of educating of the respond students Table 5 The reading magazine habit of the respondents Table 6 The channels that respondents hear about Levis Jean Table 7 The reasons of why respondents choose Levis Jean Table 8 The mean of attitude towards Levis Jean product Table 9 The reasons why the respondents do not choose Levi's Jean Table 10 The mean of attitude towards LS&Co Table 11 Regression: Different age group (a) VS Different future purchasing (b) Table 12 The future purchase willingness of aged 20-25 (a) Table 13 Cross-tabulation: Purchased Levi's Jean before * Age Group Table 14 Cross-tabulation: Purchased Levi's Jean before * Working status Table 15 Cross-tabulation: OVERALL SATISFACTION towards Levi's Jean *

The age group of the respondents Table 16 Cross-tabulation: OVERALL SATISFACTION towards Levi's Jean. *

The working status of the respondents Table 17 The mean of OVERALL SATISFACTION towards Levi's Jean (aged

20-25 tertiary educating students) Table 18 Cross-tabulation: The willingness of the respondents purchase Levi's

Jean in the future * Age Table 19 Cross-tabulation: The willingness of the respondents purchase Levi's

Jean in the future * Working Status Table 20 The mean of satisfaction towards Levis Jeans atmosphere Table 21 The mean of familiarity towards Levi's Jean's previous Promotional

Activities Table 22 The mean of familiarity towards Levis Jean through advertisement. Table 23 The degree of effort that the respondents will on put on information

search before purchase

LLiisstt ooff CChhaarrtt

Chart 1 The brand other Levis Jeans bought by the respondents

1

Executive Summary

Fashion has a life cycle, which is known as the stages of the introduction, the growth, the

peak, decline and rejection. By effective promotional tactics and sales efforts, an

appealing fashion begins to move upwards in sales. The fashion moves up in accordance

with the styles success. Maintaining a long-term peak of sales is possible with a

successful style buy requiring added expenditures of time and effort in the fashions

promotional activities. Being the fashion leader, Levis Jean has to cope with the

ever-changing environment and especially customers needs. Therefore, a promotional

campaign for 2007 is going to build up the customer relationship.

This promotional campaign is designed for Levis Jean including situation analysis,

SWOT analysis, target audiences profile, communication objectives, plus marketing

strategy with media support. A pre-test survey has been conducted to discover the current

perception of the target audience towards Levis Jean. It finds that respondents have

low familiarity towards the previous promotional activities. Consequently, the

promotional campaign is carried out to enhance the brand image of Levis Jean.

Marketing activities, such as sales promotions, will be arranged and in order to attract the

target audience, media support will be organized. Public relations activities, like press

release and customer magazine, will be carried out. Membership of Levis Loop will go

on in order to build up a closer relationship with them and maintain the database for

further promotion strategies.

2

1. Situation Analysis

1.1 Company Analysis

1.1.1 Company Background

Levi Strauss who was an immigrant from Bavarian to San Francisco founds Levi

Strauss & Co. (LS&Co.) in 1853. With 150-year development, nowadays, it is one

of the worlds largest brand-name apparel marketers with sales in more than 110

distribution countries in San Francisco, California, Brussels, London, Hong Kong,

Japan, Singapore etc. LS&Co. is a global presence in the jeans and casual pants

markets. The market-leading apparel products are sold under the Levis,

Docker and Levi Strauss Signature brands.

LS&Co. is a global corporation organized into three geographic divisions: Levis

Strauss North America (LSNA), Levis Strauss Europe (LSE) and Asia Pacific

Division (APD), which based in the San Francisco, Brussels and Singapore

headquarters respectively. Levi Strauss & Co. employs a staff of 10,000

worldwide, included 2,500 in Asia Pacific that was established in 1995.

1.1.2 Values of LS&Co.

Empathy, Originality, Integrity and Courage are four core values are at the heart

of LS&Co.

In LS&Co, EMPATHY begins with listening, and then they innovate and respond

through understanding, appreciating and meeting the needs of those they serve,

3

including consumers, retail customers, shareholders as well as employees. Also,

being empathetic means that they are inclusive, i.e. Levi Strauss' sturdy work

pants are sold in more than 110 countries throughout the world. Their popularity

is based on their egalitarian appeal and originality. They transcend cultural

boundaries. Levi's Jean the pants without pretense everyone wears them

instead of only for one part of society. On the other hand, empathy also means

engagement and compassion. Giving back to the people they serve and the

communities they operate in is a big part of who they are. Levi Strauss was both a

merchant and a philanthropist put lots of effort on community service, including

community involvement and employee volunteerism.

ORIGINALITY is being authentic and innovative. Levi's Jean is the initiator of

jeans history, which rooted in the rugged American West. They embody freedom

of self-expression and individuality which consumers love and prefer. They have

been worn by generations of individuals. They are a symbol of frontier

independence, democratic idealism, social change and fun. Levi's Jean are both

a work pant and a fashion statement at once ordinary and extraordinary. Yet, the

global business environment is fiercely competitive. International trade,

instantaneous communications and the ease of market entry are among the forces

putting greater pressure on product and brand differentiation. In order to enhance

the competitive power, continuous improvement is necessary. The growth of

Levi's Jean permeates all aspects of business from innovation in product to

marketing, from workplace practices to corporate citizenship, even creating trends

4

and setting new standards are continuously improving through change.

INTEGRITY is doing the right thing. The characteristics of LS&Co. are following

the ethical conduct and social responsibility. LS&Co. shows their willingness to

do the right thing for our employees, brands, the company and society as a whole.

Consumers feel more comfortable with Levis brands which they can trust,

while trust is the most important value of a brand.

COURAGE is standing up for what they believe, which demonstrate the

willingness of Levis Jeans to challenge hierarchy, accepted practices and

conventional wisdom. Courage includes truth telling and acting resolutely on our

beliefs. It means standing by our convictions.

The mission of LS&Co. is:

People love our clothes and trust our company. We will market and

distribute the most appealing and widely worn apparel brand.

Our products define quality, style and function. We will clothe the world.

- Levi Strauss & Co., 2006

1.1.3 Levis Store in Hong Kong

The fashion retailing operation of Levis in Hong Kong is by the franchise

business format. The franchisee is MACAY Shoes & Fashions Co. Ltd, which the

office is located in Kwai Chung. As the operation manager of the franchisee

5

mentioned, they had a well relationship with the franchisor, LS&Co., for many

years. Both parties have the signing of highly restrictive contracts that dictate

purchasing requirements, company policy and the rights of the LS&Co. to be the

overall decision-making body of the company. The contracts are carrying out the

mutual beneficial to both sides.

Currently, it has totally 20 branches1 in Hong Kong including a counter in Sogo

department stores, 5 branches in main shopping malls and 14 high-street stores. A

specialty line stores named as Levis for Girl2 and a flagship store3 is opened in

Tsim Sha Tsui in June 2003 and 2004 respectively.

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1.1.4 Stakeholders of Levis Jean

The identification and analyzing publics is the cornerstone of an effective

promotional campaign (Smith, 2005). According to Dewey (1927), the

definition of public is a group of people that shares a common interest

vis--vis an organization, recognizes its significance and sets out to do

something about it. Publics are homogeneous in that they are similar in their

interests and characteristics. They usually concern in the situation and their

relationship with the organization (Smith, 2005).

Each public has the unique linkage with the organization. There are different

distinguishing the patterns of relationships between an organization and its

various publics (Esman, 1972, Evan, 1976 and Grunig & Hunt, 1984). Smiths

(2005) suggest four useful categories of linkages: customers (these who

receive the products and services of an organization), producers (those who

provide input to the organization), enablers (those who serve as regulators by

setting the norms or standards for the organization) and limiters (those who

reduce or undermine the success of an organization in some way).

In case of Levis Jeans, its publics can be classified as following:

7

11..11..44..11 CCuussttoommeerrss

An understanding in consumer behaviour is fundamental step towards

successful business (especially in the dynamic fashion industry). A basic

marketing concept states that firms exist to satisfy consumers needs. These

needs can be satisfied only to the extent that marketers understand the people

or organizations that will use the products and services they are trying to sell,

and that they do so better than their competitors. Consumer response is the

ultimate test of whether a marketing strategy will succeed. Thus, data about

consumers help organizations define the market and identify threats and

opportunities in their own and different countries that will affect consumers

receptivity to the product.

11..11..44..22 PPrroodduucceerrss

11..11..44..22..11 SSuupppplliieerr

LS&Co. source their products primarily from independent manufacturers

located throughout the world in order to ensure the high quality and

maintain price easier. Contractors are located in approximately 36

countries around the world. No single country represents more than 20%

8

of our production. Contractors in South and Central America (including

Mexico and the Caribbean) produced approximately 43% of the products

in 2005. Contractors in Asia produced approximately 39% of the products

in 20051.

11..11..44..22..22 EEmmppllooyyeeeess

Employees are the most important assets of a company who determine the

success and failure of a corporate. This motto holds true for many

organizations. A promotional campaign, either grand or comprehensive,

cannot be implemented successfully without the full support of its

employees. This is especially true for LS&Co., a fashion retailing service

provider where customers experience relies on the staffs courtesy and

enthusiasm.

11..11..44..22..33 OOwwnneerrsshhiipp

The company is privately held by descendants of the family of Levi

Strauss. Shares of company stock are not publicly traded.

11..11..44..33 EEnnaabblleerrss

11..11..44..33..11 MMeeddiiaa

Media play a very powerful and influential role in forming publics

9

opinions, perceptions and attitudes. Mass media are important and

often-used channels of publicity for LS&Co. maintaining good

relationship with the media helps LS&Co. to reach its audience and gain

timely publicity of its public relations and promotion events.

11..11..44..44 LLiimmiitteerr

11..11..44..44..11 CCoommppeettiittoorrss

In Hong Kong, the Levis Jean face to huge competition in the

marketplace as the fashion environment is ever-changing.

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1.1.5 Previous Promotion Mix of Levis Jean (Hong Kong)

Examining what and how the company did the communication programs in

the past can help in analyzing the strengths of the company. It benefits in

budget estimating, and understanding the opportunities for advertisers.

After documentary analysis on media kits from 2001 to 20063, it is

summarized that Levis Jean communicated with the society with the

following tactics:

Promotional advertising in products

Joint promotions programs

Special functions and events

11..11..55..11 PPrroommoottiioonnaall aaddvveerrttiissiinngg iinn pprroodduuccttss

There are verity product ranges of Levis Jean, such as Engineered Jeans,

TYPE 1, N3BP. The main purpose of this kind of promotional advertising is

the company wish to sell a specific item and/or alert the shopping to a style at

that period of time. Levis Jean mostly utilizes this promotional advertising,

yet it may not cost huge amount for Levis Jean as mentioned by Paul Wong,

the operation manager of franchisee in Hong Kong, they had a close

relationship with the local media, especially magazines. The editors are

11

willing to corporate with them. Levis Jean provides the products

information to the editors, and then they will write the relevant stories without

any charges.

Throughout the years, the only paid-form advertising that Levis Jean had

done in Hong Kong was the outdoor advertising, like the billboards which

promote Engineered Jeans with Jay Chou () as the spokesperson in

Nathan Road Mongkok and the MTR pedestrian tunnel in Causeway Bay.

Having the simple and rhyme slogan is another characteristic of Levis Jean

promotional advertising in Hong Kong. For example, Free to Move for

Engineered Jean, Stay True for Levis 501 Reborn Jeans and

for Levis N3BP Jean. It aims as product recall in customers mind.

11..11..55..22 JJooiinntt pprroommoottiioonn pprrooggrraammss

Joint promotion programs were held regularly with different brands, such as

Levi's x Swarovski for Levis Lady Style in 2005, Sony Style x N3BP

for Levis N3BP Jeans in 2004 and CocaCola x Levis for TYPE 1 Jeans

in 2003.

12

11..11..55..33 SSppeecciiaall ffuunnccttiioonnss oorr eevveenntt

The company held several activities, functions and events regularly. Annual

parties like 501 Party for celebrating the innovation of Levis 501 Reborn

Jeans is held in 1 May each year and public activities like Levi's Stay True x

MSN: the creativity competition of MSN icon. However, the scales of these

functions are relatively small as few people got notice and customers were not

widely invited to join.

The tactics mentioned above were employed to promote Levis Jeans from

2001 to May 2006. The communication programs were increasing since 2005,

but only it is lacking the promotional campaigns. More details of the past

communication programs of the company will be shown in Appendix 3.

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1.2 Consumer Analysis

1.2.1 Result of the Questionnaire

There were 158 valid responses after collecting all the data. The gender of the

respondents was equal distributed (i.e. 55.1% is female while 44.9% is male,

Table 1). There are 73.4% of interviewers aged 20-25. For those aged of 26-30

and 31-35, there are 11.4% and 5.7% respectively (Appendix 2, Table 2). In terms

of working status (Table 3), 54.4% of the respondents are full-time students

(72.1% and 24.4% of students are studying undergraduate and postgraduate

course respectively, Table 4) while 39.9% respondents are at work.

Table 1: The gender of the respondents

Frequency Percent Valid Percent Cumulative Percent

Valid Female 87 55.1 55.1 55.1

Male 71 44.9 44.9 100.0

Total 158 100.0 100.0

Table 2 The age of the respondents


Valid below 18 2 1.3 1.3 1.3

18-20 8 5.1 5.1 6.3

20-25 116 73.4 73.4 79.7

26-30 18 11.4 11.4 91.1

31-35 9 5.7 5.7 96.8

36-40 2 1.3 1.3 98.1

41-45 1 .6 .6 98.7

above 45 2 1.3 1.3 100.0

Total 158 100.0 100.0

Table 3 The working status of the respondents


Valid Full time 63 39.9 39.9 39.9

Part time 5 3.2 3.2 43.0

Student 86 54.4 54.4 97.5

Unemployed 4 2.5 2.5 100.0

Total 158 100.0 100.0

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Table 4 The level of educating of the respond students


Valid A Level 3 3.5 3.5 3.5

Undergraduate 62 72.1 72.1 75.6

Postgraduate 21 24.4 24.4 100.0

Total 86 100.0 100.0

In addition, most of the respondents (90%) have reading magazine habit (Table 5).

Apart from the advertisements in magazines (50.6%), media like flagship store

(13.9%) and outdoor advertising (10.1%) can also reach our target audience easily

(Table 6).

Table 5 The reading magazine habit of the respondents


Valid Never 14 8.9 8.9 8.9

1-2 times/wk 124 78.5 78.5 87.3

>2 times/wk 20 12.7 12.7 100.0

Total 158 100.0 100.0

Table 6 The channels that respondents hear about Levis Jean


Valid Boutique / Counter 12 7.6 7.6 7.6

Flagship store 22 13.9 13.9 21.5

Friends 28 17.7 17.7 39.2

Outdoor advertising 16 10.1 10.1 49.4

Magazines 80 50.6 50.6 100.0

Total 158 100.0 100.0

The reasons for customers buying the product mostly based on the product design

(61.1%), product texture (20.6%) and company goodwill (8.4%) (Table 7).

Customers have the positive attitude towards Levis Jeans, in terms of trendy,

quality and comfortable which have the means of 4.88, 4.99 and 5.05 respectively

(Appendix 2, Table 8). Yet, quite a lot of customers still think the price setting is

rather high.

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Table 7 The reasons of why respondents choose Levis Jean


Valid Product design 80 50.6 61.1 61.1

Product texture 27 17.1 20.6 81.7

Price 1 .6 .8 82.4

Convenient to visit 2 1.3 1.5 84.0

Company goodwill 11 7.0 8.4 92.4

Sales promotion 2 1.3 1.5 93.9

Free gift 1 .6 .8 94.7

Event / promotional activity / Sponsorship 1 .6 .8 95.4

Increase personal attraction 3 1.9 2.3 97.7

Increase social status 3 1.9 2.3 100.0

Total 131 82.9 100.0

Missing System 27 17.1

Total 158 100.0

Table 8 The mean of attitude towards Levis Jean product

Levi's Jean

is Trendy.

Levi's Jean is

Expensive.

Levi's Jean is in

Good Quality.

Levi's Jean is

Comfortable.

Levi's Jean is Apparel to

young customers

N Valid 132 131 131 132 132

Missing 26 27 27 26 26

Mean 4.88 4.73 4.99 5.05 5.09

To realize the needs and desires of potential customers, it is necessary to find out

the reasons why do not choose Levis Jeans. Half of the respondents claimed

that the insufficient price is the most significant reason. Moreover, inconvenient

to visit is another reason (Table 9). The mean of attitude towards the level of

price-setting is 4.94 (1=strongly disagree while 7=strongly agree, Table 10) which

tends to expensive side. That means the high-price is one of the obstruction of not

purchasing Levis Jean reason. Nevertheless, price setting and store location are

not the objective of this campaign as these require a series of marketing research.

Table 9 The reasons why the respondents do not choose Levi's Jean


Valid Poor product design 1 .6 3.8 3.8

Insufficient price 13 8.2 50.0 53.8

Inconvenient to visit 10 6.3 38.5 92.3

Dissatisfied buying experience 2 1.3 7.7 100.0

Total 26 16.5 100.0

Missing System 132 83.5

Total 158 100.0

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Table 10 The mean of attitude towards LS&Co

Levi's Jean's

brand is

Relaxation /

Casual.

Levi's Jean's

brand is

Expensive.

Levi's Jean's

brand is

Trendy /

Fashionable.

Levi's Jena's

brand is

Empathy.

Levi's Jean's

brand is

Originality.

Levi's Jean's

brand is

Courage.

Levi's Jean's

brand is

Integrity.

N Valid 158 158 158 158 158 158 158

Missing 0 0 0 0 0 0 0

Mean 5.09 4.94 5.13 4.47 4.68 4.81 3.79

On the other hand, customers have a positive perception of brand image as shown

in the survey with a 7-point scale (1=lowest while 7=highest, Table 10). The mean

of empathy, originality, courage and integrity are 4.47, 4.68, 4.81 and 3.79

respectively (Appendix 2). This has shown that LS&CO and its products have a

neutral image in the market.

1.2.2 Selecting the target market

After discussing the perception of LS&Co. and Levis Jeans (Hong Kong), the

campaign may need to select the target market. By co-relation, respondents in

different age group and working status have different purchasing willingness

towards Levis Jean in the future. Hence, it is necessary to identify the potential

customers among the age group (below) and working status (i.e. full time, part

time and students).

By regression, age between 20 and 25 with tertiary educating students ought to

purchase in Levis Jean in the near future (Table 11). In other words, the

relationship between ages of 20-25 years old and future purchase in Levis Jean

is positive (Table 12).

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Table 11 Regression: Different age group (a) VS Different future purchasing (b) Model Sum of Squares df Mean Square F Sig.

1 Regression 9.533 1 9.533 3.943 .049(a)

Residual 379.574 157 2.418

Total 389.107 158

(a) Predictors: (Constant), How old are you?

(b) Dependent Variable: How likely will you purchase Levi's Jean in the near future?

Table 12 The future purchase willingness of aged 20-25 (a)

Model

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B Std. Error Beta

1 (Constant) 2.103 .197 10.650 .000

How likely will you purchase

Levi's Jean in the near future? .161 .039 .473 4.188 .000

a. Dependent Variable: age of 20-25 tertiary education people

In addition, according to the cross-tabulation analysis, the aged of 20-25 tertiary

educating students have a greater proportion of purchased Levis Jeans presently

(Table 13 and 14) with a positive overall satisfaction towards the company

(mean=5.40, as shown in Table 15, 1=strongly dissatisfied while 7=strongly

satisfied). In terms of purchasing willingness in the near future, aged of 20-25

tertiary educating students have great possibility to buy Levis Jean (Table18

and 19).

Table 13 Crosstabulation: Purchased Levi's Jean before * Age Group

e2. How old are you? Total

below 18 18-20 20-25 26-30 31-35 36-40 41-45 above 45

b1. Have you ever

bought Levi's Jean?

Yes 1 6 101 15 7 1 1 0 132

No 1 2 15 3 2 1 0 2 26

Total 2 8 116 18 9 2 1 2 158

Table 14 Crosstabulation: Purchased Levi's Jean before * Working status What is your working status? Total

Full time Part time Student Unemployed

Have you ever bought Levi's Jean? Yes 52 2 74 3 131

No 11 3 12 1 27

Total 63 5 86 4 158

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Table 15 Crosstabulation: OVERALL SATISFACTION towards Levi's Jean * The age group of the respondents How old are you? Total

below 18 18-20 20-25 26-30 31-35 36-40 41-45 above 45

2 0 0 3 1 0 0 0 0 4

3 0 1 8 1 2 1 1 0 14

4 0 3 18 7 4 0 0 2 34

5 2 3 47 7 1 0 0 0 60

OVERALL

SATISFACTION

towards Levi's

Jean

6 0 1 40 2 2 1 0 0 46

Total 2 8 116 18 9 2 1 2 158

Table 16 Crosstabulation: OVERALL SATISFACTION towards Levi's Jean. * The working status of the respondents What is your working status? Total


2 2 2 0 0 4

3 7 2 5 0 14

4 21 1 11 1 34

5 25 0 33 2 60

OVERALL

SATISFACTION towards

Levi's Jean

6 8 0 37 1 46

Total 63 5 86 4 158

Table 17 The mean of OVERALL SATISFACTION towards Levi's Jean (aged 20-25 tertiary educating students) N Valid 62

Mean 5.40

Table 18 Crosstabulation: The willingness of the respondents purchase Levi's Jean in the future * Age How old are you? Total

below 18 18-20 20-25 26-30 31-35 36-40 41-45 above 45

Least likely 0 0 7 1 0 0 0 0 8

2 1 0 7 3 3 2 0 1 17

3 0 2 14 1 2 0 1 1 21

4 0 2 15 5 2 0 0 0 24

5 1 2 45 4 0 0 0 0 52

6 0 2 23 3 2 0 0 0 30

How likely

will you

purchase

Levi's Jean

in the near

future?

Most likely 0 0 5 1 0 0 0 0 6

Total 2 8 116 18 9 2 1 2 158

Table 19 Crosstabulation: The willingness of the respondents purchase Levi's Jean in the future * Working Status e3. What is your working status? Total


Least likely 4 1 2 1 8

2 12 0 5 0 17

3 7 2 11 1 21

4 12 1 9 2 24

5 15 1 36 0 52

6 9 0 21 0 30

c6. How likely

will you

purchase Levi's

Jean in the near

future?

Most likely 4 0 2 0 6

Total 63 5 86 4 158

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1.3 Market Analysis

1.3.1 Economy Growth in Hong Kong

Tao Dong11, chief economist of Swiss credit Asian and Pacific area, pointed out

that the Hong Kong first half-year economy developed comprehensively,

particularly in the growth of domestic expenditure. The first season personal

expense speeded up the growth this year, the increased range was yearly 4.5%,

whilst compare with the increased range was 3.5% last year. It expended the

optimistic in future purchasing willingness. Indeed, manpower market was

blazing, e.g. the university graduate's employment situation, might strengthen the

young consumer to the prospect confidence on expenditure, and the stimulation

expense market.

1.3.2 The Buying Pattern of Hong Kong tertiary educating students

A university has conducted an investigation on the situation of Hong Kong

university students purchase the brand products in 200512. The result claimed that

they were most likely had and willing to buy the famous brand products. 50% of

the tertiary students spent above 40% pocket money on the luxury products

(including clothing and accessories) each month. Also, about a quarter of the

university students spent 60% above pocket money purchase brand products in

habit.

1.3.3 Jeans become fashion item

The comfortable denim clothing nowadays source in 19th century coal miner

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work clothes (Harris, 2002), undergoes more than hundred years evolution. After

Hollywood star's flattering and the development in production, Denim becomes

the necessary element in each season currently from the actual work pants13.

Jeans has become a part of the fashionable icon since 1950's Hollywood stars

dressed up the 20th century cowboy look, for example James Dean and Marlon

Brando acted the counter-organic rebel youth with the white tee and jeans in

Rebel Without a Cause and A Streetcar Named Desire respectively. From that

time, jeans then became young people's popular attire. Meanwhile, sexy goddess

Marilyn Monroe in the movie puts on the tight-fitting jeans in Misfit to

demonstrate brilliant leg line. This brings the young female to imitate, and makes

denim clothing become more popular13.

1.3.4 The Nature of fashion market

The fashion market is cyclical, with roller coaster trends influencing different

goods. Jeans can be substituted by other styles of trousers, like cords or chinos

and this can mean that the fashion for wearing jeans ebbs and flows, as well as

jeans fashions and styles changing within the overall market. Fashions have

become faster and more temporary.

The jeans market has also polarized, with growth in the low-price private label

sector, contraction of demand and falling prices in the mass-market, and

buoyancy in the premium priced jeans sector. The popularity of the discount and

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value retailing sector has been a major factor, for instance, Levi Strauss

Signature, which is positioning the general public, its products are placed at the

supermarket as a giant mass channel outlet in United States with lower price1. At

the other end of the scale, suppliers have been adding to style and finish in order

shoring up their company image and charging premium prices. For example, a

special Levis jean which, feature most iPod systems with a built-in iPod

docking cradle, joystick and retractable headphones, estimates selling price over

US$ 200 in fall 2006 (http://hk.news.yahoo.com/060111/12/1kbqi.html).

On the other hand, the jean market is continues to grow with even more styles and

colors. The variety of jeans is directly related to consumer demand. Consumers of

today want to be individuals and not have the same pair of jeans as others have

meaning the market is open to colorfulness and personification.

Since there are so many jeans on the market today, a challenge that great

advertising cannot meet alone. Companies who produce jeans are faced with the

task of making their jeans stick out.

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1.4 Product Analysis

The Levis brand offers a wide selection of innovative products in both mens and

womens wear product lines, from updating classics with the latest finishes,

fabrications and colors, to reinventing five-pocket jeans. It designs clothing for ever

size, shape and fit preference.

1.4.1 History of Jean

According to Harris (2002), in 1853, during the California Gold Rush, Levi

Strauss opened a wholesale dry goods business in San Francisco. That business

became known as Levi Strauss & Co (LS&Co). In 1873, Levi Strauss and Jacob

Davis, a tailor, saw a consumer need for work pants that could hold up under

rough conditions. They worked together and received a U.S. patent to make waist

overalls with metal rivets at points of strain on the pants, and the world's first

jeans - Levi's jeans - were born. Levi Strauss & Co. brought these new

workpants to market that year, and, in 1890, began using the lot number 501 to

identify the product4.

The further development of Levis Jean was carried out throughout the years. In

1886, the Two Horse brand leather patch, a symbol of the pants' strength, was

first used on the Levis Jean. The Levi's brand eye-catching red Tab Device

was added to the jeans in 1936. Placed onto the right back pocket with the word

Levis stitched in white capital letters, it differentiates Levi's Jeans from

competitors Levis Jean famous arched back pocket stitching is called the

23

arcuate. This iconic stitching can be seen on back pockets throughout the

world4.

LS&CO.s history and longevity are unique in the apparel industry. Levis jeans

are the original, authentic and definitive jeans.

1.4.2 Milestones of Levis Jean

1847 Strauss family moves to New York City where Levi joined his brothers dry-goods business

1853 Levi moves to San Francisco, California to establishing a dry-goods business LS&Co.

1860 Blue cross grain cotton fabric which is imported from France, replaced the use of sturdy

denim twill.

1868 Jacob settled in Reno, Neveda tailoring clothing and manufacturing tents and horse blankets

1871 Jacob who was using rivets on horse blankets, decides to try them on pant pockets for

strength

1872 Jacob wrote a letter to Levi suggests that they hold the riveted pants patent rights together.

1872 on August 8, filed patent application for Improvements in Fastening Pocket-Openings

1873 Levi hires Jacob to oversee production of the riveted pants and double stitches at the back

pocket at the San Francisco plant

1886 The two-horse leather patch was created as a symbol of Levis Jeans

1875 Levi and two associates purchased the Mission and Pacific Woolen Mills

1890 Lot number "501" was first used to designate the denim waist overalls

1935 Levi's jeans for women were first featured in Vogue magazine

1936 The red Tab Device was created to help identify Levi's 501 jeans from a distance

1950 Uses the zipper to substitute for the copper rivet for the first time

1960 The word jeans became popular when the baby-boom generation used the term for the pants

jeans, blue jeans, Levi's, denim waist overalls, 501, dungaree, Levi Strauss, Jacob Davis,

invention, history, inventor of, history of, who invented, invention of, fascinating facts.

1964 The appearance of the bell-bottomed jeans

(Source: www.levistrass.com)

24

There are several series of Levis jeans in Hong Kong market over the years.

1996 The launch of Levi's Vintage Clothing LVC series

1999 The launch of Levi's RED series

2000 The launch of 3D Engineered Jeans

2001 The launch of Type 1 Jean series

2004 The launch of N3BP, Levis 501 Reborn Jean and Levi's LADY STYLE series

2005 The launch of Square Cut Jeans series

Source: Sanna2005 11 21 Levi's

1.4.3 Type of Levis Products

11..44..33..11 LLeevviiss EEnnggiinneeeerreedd JJeeaannss66

Levis Engineered Jean was the revolutionary 3D three-dimensional tailor jean

which is born in 2000 with the flaunting Free-To-Move slogan, utilized

Ergonomics kinesiology 3D three-dimensional tailor skill in emphasizing the

elasticity strong and conforming to the human body curve.

The European designers, makes the starting point by young peoples life and the

active pattern and the street corner element integrates in the cowboy clothing,

design the series of Engineered Jean. The men's clothing series fills Hip the Hop

taste, the host hits jeans is Denim Rib Hem Pants which use the big pants crotch

design. The lining is ragged by red and the golden colour big infant wind.

Meanwhile, the collection for unisex promotes a section union trunk design with

the underpants bundles on the stretchy vivid-coloured material and by the

underpants rope belt substitution zipper, the trousers body decorates in addition

by the elastic cotton material. The design is exaggeration but skillful.

25

11..44..33..22 LLeevvii''ss TTYYPPEE 11 JJeeaannss77

Levis TYPE 1 Jeans which is the timeless style of Levis original jeans has

evolved into a bold and new denim line in spring 2003 for men and women

capturing the essence and authenticity of the Levis brand. Inspired by Levi's

heritage, this line features a bold, modern, interpretation of Levi's signature

design details including oversized rivets and buttons, bold two-horse brand

leather patch and Levis red tab device and the arcuate stitching.

In terms of tailor-cutting, the fit cutting and wash finishing match the personalized

uniquely with low waist design. In the material quality aspect, Levi's TYPE 1

Jean series is red cast which selects from more than 50 kind of high quality denim

cloths with further researches and develops, therefore Levi's TYPE 1 Jean series

no matter in the tailor or the material quality, gives out the incomparable comfort

and the independent bright individuality naturally more outstanding.

11..44..33..33 LLeevviiss NN33BBPP JJeeaann88

The abbreviation of N3BP is meaning Next Next Next Blue Print: N stands for

Next, 3 represents to the power 3 in mathematic and BP is Blue the Print cowboy

product. The positioning of Levis N3BP Jean is worldwide youths who select

an experimental and venturous position. Levis N3BP Jena appeared on the

market in 2004.

26

The concept of Levis N3BP Jean is back to concise and primitive under the

Belgium designer, Mark Westmoreland, so take Simplified life, Simplified jeans

as the slogan. The simple style does not have the least bit skillful detail but the

effect is outstanding with modernity and fashionable. The lack of material supply

caused the production of 501 Jeans deleted all non-essential decorations,

including the red tab device, rivet, cotton thread, button, the front watch pocket,

back arcuate stitching and so on, only left the indispensable element at the back of

jeans. The decoration arcuate stitching on the back pocket and the two-horse

brand patch seal straight on the jeans with Made to a Different Vision the slogan

in dot matrix font by the white rubber printing technology, and the Red Tab device

symbol replaces the solid stitch by the spot stitch, aim at the reduction with the

cloth and complexion in cotton thread around. The unique tailor lets the pants

pocket be united as one body. (www.n3bp.com.hk)

11..44..33..44 LLeevviiss 550011 RReebboorrnn JJeeaann55

Levis 501 surpassed for a century, experienced five different textile industry

ages, different public still loved it because of its improvement in the unceasingly

design.

In 2004, a brand-new Levis 501 Reborn Jean is promoted in the market. Its

characteristics are the comfortable pattern, the low waist design, the loose

buttocks and the straight design which is more suitable for Asian. At the same

27

time, three kinds of brand-new washing water effects suited the young people

style. Moreover Levi's 501 Reborn Jeans also retains its originality, including

uses American Cone the Mills tradition spinning and weaving technology to

produce 'Cone outside 01 ' 100% entire cotton and kapok heavy pound denim.

Similarly Levi's 501 Reborn Jean has equally with other Levi's besets with front

watch pocket, back arcuate stitching, rivets and Levi's Red Tab device, but each

Levi's 501 Reborn jeans attaches Levi's print Dog Tag and the booklet of

Levi's 501 Reborn Jean.

11..44..33..55 LLeevviiss LLaaddyy SSttyyllee99

Levis Lady Style is the first time of Levis promotes specially the series

premium jeans for feminine customers across Asia in the end of 2004. It designs

for more sophisticated wearing occasions. The concept of the Levis Lady Style

is to accentuate the feminine and luxurious with the European western-style. It

makes both legs particularly be all slender. The back pocket is in tiny heart shape,

the position also compared to other series jeans for high, decorates the hip line to

be more attractive, and has the buttocks pushes upwardly effect. This time, elastic

denim cotton is chosen as the material for comfortably. The logo embroiders in

cursive English written style in order to expose the feminization.

11..44..33..66 LLeevviiss SSqquuaarree CCuutt JJeeaann1100

Levis Square Cut, in 2005, is the new design with a straight-top cut, which

means the waistband sits snug and contoured across the hip. The jeans hangs

28

straight down, giving a clean and flat look. The square Cut Jeans also allow the

customers to buy their actual waist size instead of one size up.

29

1.5 Competitors Analysis

Competitors are people or groups who are doing the same thing as the organizations

are in essentially the same arena (Smith, 2005).

1.5.1 Chevignon

The founder of Chevignon, Guy Azoulay, initial developed the menswear

collection in 1979 in Paris, France with the idea of recreating the Flights,

bomber jackets that the U.S. Air Force wore during the 1950s. The essence of the

Chevignon brand name is the translation of the American dream, the legend of

America in 1950s. The Chevignon Girl collection was created and reinforced

Chevignons brand image of a unique living style in 1989. The positioning of

Chevignon is the universe citywear for 20-35 men and women who live with an

attitude positive, calm and assertive.

Chevignon

Miss Sixty

Diesel

non brand name

Bauhaus / TOUGH

Designer Jeans

EspritVF Corporate

0

10

20

30

40

50

Per

cent

Chart 1 The brand other Levis Jeans bought by the respondents (n=62)

30

The style of Chevignon reflects the tendencies fashionable to jeanswear with

combination of aesthetics and functionality. The continuous research and

development in quality of its products is the major strength of Chevignon, for

example innovation of natural materials and improvement in its processes of

production.

Presently, Chevignon expands its distribution markets to more than 20 countries

throughout the world, including New York, Tokyo and Hong Kong.

In 1990, Chevan (Hong Kong) Ltd. obtained the distribution rights of

Chevignon in Hong Kong and Singapore etc. The first Chevignon shop in Hong

Kong opened in Ocean Centre, which targets the young and affluent segment of

the market. An extensive range of product lines are available in including clothing

of men, ladies and kinds, footwear as wall as accessories. New jeans style,

THEME for men and LEARNERS for girls, was introduced to the Hong Kong

market in 1992. These styles feature Chevignon labels from different periods

sewn onto the back of the jeans. (www.chevignon-hk.com)

1.5.2 Miss Sixty

Miss Sixty is one of most appreciated and well-known brands of Sixty Group

which was established in 1989 with the first development of the first Energie

brand which targets young men. The group is an experimental and innovative

31

garment store linked with the art and culture world and initial founded in Rome

by Wicky Hassan, the group creation manager and chairman. The Sixty Group

brands presently produce man and womans garments (which denim is the core

business of the Group), accessories and footwear, and are sold in about 7000

points of sales in more than 90 countries worldwide.

Miss Sixty has conquered its own space since 1991 as the Energies womenswear

line. Miss Sixtys target customers are represented by demanding young women

who are continuously in search of innovation, originality, variety, and who love

playing with garments and define their look and style from time to time. First and

foremost appreciated for the wide range of jeans and for its original and unique

proposals, Miss Sixty has become increasingly feminine, sexy and glamorous in

recent years. (www.sixty.net)

1.5.3 Diesel

Renzo Rosso establishes Diesel since 1978 in Italy. The concept of Diesel is

unique and original fashion. Its clothing emphasis the fabric choosing and sewing

whose quality is good technology. The attitudes of Diesel which is not influenced

by popularity lift style, in other words have become something which reflects

Diesels style method.

The brand, Diesel, which is the casualwear collection for young men and women

focuses on the denim. It freely uses the new technology, such as individual detail

32

and new washing technique, processing and finishing. With the 5-pocket denim,

there are over 40 different denim design and styles, and over 50 washing types.

Currently, there are 15 subsidiary offices in Europe, Asia and America with 3,400

employees work over the world. The enterprise possesses the sale base of 5,000

places in 80 countries with 270 Diesel stores (e.g. flagship store in New York,

Rome, London and Tokyo etc, Diesel denim gallery of Diesel store and Diesel

concept store in Milan, Berlin and Hong Kong).

Diesel started to announce the campaign since 1991 and brought a great success

to its business. The creative campaign became the driving force where feature

approach pushes up Diesel to worldwide position. The successful campaigns are

done by the creative team which is the internal small group of the company with

consists of the talent who has creativity and marketing ability.

(http://www.diesel.co.jp/planet/)

33

2. SWOT Analysis

SWOT analysis is a very simple concept in essence, but it can be developed to a high

degree of sophistication, involving an extensive network of internal and external

information system (McGoldrick, 2002). The components in a SWOT analysis are

included strengths/weaknesses (internal) and opportunities/threats (external).

2.1 Strengths

The brand, Levis Jean is well-known by youngsters with positive reputation. It is

probably the result of long historical establishment for over 150 years. Though, the

company continues to improve the quality of the products through research and

development in technology and pattern design in order to maintenance the

competitive power in the forceful fashion markets.

Levis Jeans provide a wide range of products, including 3D engineered jeans, Type 1,

N3BP, Levis Lady Style and Square Cut. Diversifying in products can fulfill different

customers different needs and encourage them to repeat purchasing.

Currently, in Hong Kong., there are total 20 distribution channels where the

convenient, easy-access and fashion-centered locations that youngsters always go,

such as Mongkok, Tsim Sha Tsui and Causeway Bay.

34

2.2 Weaknesses

Though pointing out strengths, several weakness points are faced by Levis Jeans.

Although a positive satisfaction towards overall Levis store atmosphere, by the result

of the questionnaire, the element of in-store music only performs fairly. According to

Solomon & Rabolt (2004), music and sound is important tool for setting the shoppers

emotion as background music creates desired moods. Many aspects of sound may

affect peoples feelings and behavious. The effects of background music on mood and

the influence of speaking rate on attitude change and message comprehension. Also,

respondents of the survey claimed that promotions in sponsorship and event &

promotional activities were insufficient. This indicates the communication between

the company and customers is not enough.

2.3 Opportunities

Despite analyzing the internal strengths and weaknesses of the product, it is now

looking at the external opportunities. Levis Jean can capitalize on, and it is about the

comparative advantages in the high potential of expansion in Hong Kong youth

market.

Age between 20 and 25 is regarding as Generation Y in academic term. This group of

youngsters is pretty much discretionary on expenditure as they do not have a

mortgage payment, utility bills, kids or spouse, so they can spend their money when

and how they want.

35

Tertiary educating students are addicted to owing the brand products. They are willing

to spend quite a lot of money on the brand products.

On the other hand, the economy of Hong Kong is continuously and comprehensively

recovering, particularly in the growth of domestic expenditure. People are optimistic

in future purchasing willingness. Also, the brilliant university graduate's employment

situation strengthens the youthful consumer to the prospect confidence on

expenditure.

2.4 Threats

Some threats are found. Firstly, at present, the young people jeans market competition

extremely is intense, especially middle-price fashion products receive greatly

welcome because many consumers are affordable.

Likewise, the jeans market is booming. The market was saturated with luxury brands

and had no place for other types of fashion.

Last but not the least, the fashion market is cyclical, as time passes the trends change.

Jeans can be substituted by other styles of trousers, like cords or chinos and this can

mean that the fashion for wearing jeans ebbs and flows, as well as jeans fashions and

styles changing within the overall market. Fashions have become faster and more

temporary, especially the youngsters like to be unique and individuality. They move

on to new styles rapidly.

36

3. Methodology

In this campaign, both secondary research and primary research were used for the study.

For the secondary research, books, journals, reports and internets were used. For the

primary research, quantitative survey questionnaire was used. This is undertaken using a

structures research approach with a sample of the population to produce quantifiable

insights into behaviour, motivations and attitudes.

3.1 Primary Research

A questionnaire survey was conducted in the internet. A convenient sample of 158

respondents was recruited randomly. According to the survey result, the gender of the

respondents was equal distributed (i.e. 55.1% is female while 44.9% is male, Table 1)

and most of the respondents were aged 20-25 (73.4%) with student status (54.4%).

Table 1: The gender of the respondents


Valid Female 87 55.1 55.1 55.1

Male 71 44.9 44.9 100.0

Total 158 100.0 100.0

The questionnaire collected information about respondents perception of Levis Jean,

the perception of Levis and some personal opinions. The questionnaire is in

Appendix 1. By using SPSS to analyze the data, the results of this survey will be

presented later.

There should have some errors in the questionnaires. First of all, since the

respondents were randomly selected, via internet, it is still causing bias. Second, the

37

personal bias of the respondents cannot be detected easily. As a result, these are the

limitations of this survey. Also, due to a shortage of time and manpower, large

samples were difficult to recruit. Therefore, questionnaires conducted were only on a

reasonably small scale, but qualitative, that is, sending the email to the targeted

group.

3.2 Secondary Research

Secondary data is information that has been previously gathered by someone other

than the person who conducted the study that has already appeared elsewhere.

-Frey, Botan and Kreps, 2000

Secondary data including various books, journals, reports and internet were used in

this campaign. General information and theories were sourced from standard text on

promotional campaign, fashion marketing and retailing and consumer behaviour of

the targeted group. Reports research was searched from various databases, such as

Statistical Census Department. The information of demographic variables was found

from the reports. Using the internet search engines, such as AdMango, Google, Yahoo,

MSN and Wise Search, searched various up-to-date information. There are also

varieties of up-to-date information through the World Wide Web, for example, the

previous advertising, newspaper cutting etc. Moreover, the companies websites were

surfed on in order to have the updated company profile.

38

4. Profile of Target Audience

According to the Hong Kong Census & Statistics Department, there were 169,400

persons aged 15 and above studying higher education in Hong Kong. For this

promotional campaign, the target audience is:

Both males and females

Aged 20-25

Studying tertiary education locally in full-time base

Shopping-lover

Reading magazines regularly

Fashionable in mind

4.1 The characteristic of target audience

For the ages of 20-25, this group of people belongs to the Generation Y [which means

teens and 20-somethings born roughly between 1977 and 1994, Smith (2005)]. The

money philosophy of this group is optimistic and experimental. The characteristic of

the Generation Y is being raised in an economy. It has been unaffected by major wars

or military conflicts. These people are technologically advanced, surrounded with

interactive toys, talking learning systems, video technology, cable TV, and the internet.

Generation Y already has its own credit cards and internet accounts. They love to

shop and are knowledgeable about brands and fashion but are cynical about

traditional marketing (Solomon and Rabolt, 2004).

Specialty speaking on Generation Y female, they are recreational discount seekers

39

who prefer sale and discounted prices (Bakewell and Mitchell, 2003). This group of Y

consumer is interesting in that they seem to pursue quality, but are more

price-sensitive. They need to be informed of future price reductions and would favour

marketing programs that lead to monetary savings.

Trend-setting and loyalty is another characteristic of Generation Y female (Bakewell

and Mitchell, 2003). They are attractive customers to retailers because once

preferences are established.

According to the survey result, the target audience has a positive satisfaction towards

Levis Jean except some aspects, for example in-store music (mean=4.19, Table 20,

1=strongly dissatisfied while 7=strongly satisfied) and unfamiliar with the previous

promotional activities (Table 21, 1=strongly unfamiliar while 7=strongly familiar).

This implies that Levis Jean (Hong Kong) has put resources in the promotional

activities, but it did not reach the target audience. Therefore, there is room for

improvement. It believes that after the improvement, sales would be boost up as our

target customers will be more familiar with us, and then they will continuously do the

repurchasing in the future.

Alternatively the tertiary educating students have strong familiarity (mean=4.84,

1=strongly unfamiliar while 7=strongly familiar, Table 22) towards Levis Jean

products through advertising, but they are not information seekers (mean=3.44, Table

23). Hence, the communication tools will be still focus on the advertisement in a

40

emotional way.

Table 20 The mean of satisfaction towards Levis Jeans atmosphere

Store Location Cleanliness

Shop

Appearance In-store Music

Buying

Atmosphere OVERALL

N Valid 62 62 62 62 62 62

Missing 0 0 0 0 0 0

Mean 5.60 5.48 5.42 4.19 4.71 4.84

Table 21 The mean of familiarity towards Levi's Jean's previous Promotional Activities

Sale

Promotion

Type 1 x

CocaCola

Levi's Lady Style

CRYSTALLISED

501 Stay

True x MSN

501

Party

Levi's

Loop OVERALL

N Valid 62 62 62 62 62 62 62

Missing 0 0 0 0 0 0 0

Mean 3.58 3.50 3.16 3.21 2.85 2.68 3.23

Table 22 The mean of familiarity towards Levis Jean through advertisement.

Type 1 N3BP Square Cut 501 Levi's Lady Style Engineered Jeans OVERALL

N Valid 62 62 62 62 62 62 62

Missing 0 0 0 0 0 0 0

Mean 4.39 4.13 5.03 5.27 3.79 5.40 4.84

Table 23 The degree of effort that the respondents will on put on information search before purchase

Valid 62 N

Missing 0

Mean 3.44

41

5. Objective

Throughout the campaign, there are marketing, public relations and media objectives. To

start with, the marketing objective essentially focuses on boosting up sale of Levis

Jean (Hong Kong) 20% compared to the previous year by the end of the one-year

campaign in 2007 and enlarging the Levis Loop in the development of database for

future direct marketing use.

Meanwhile, public relations objective is maintain a closer relationship with our target

audience.

Reaching out target audience is the media objective, which can helps to achieve the

marketing objectives, as it is significant to get in touch with the target audience.

According to the questionnaire, the familiarity of the promotional activities is fair. It is

hope that the target audience will have a thorough understanding on what functions and

activities that the company will hold in the coming year after the promotional campaign.

42

6. Promotional Campaign

6.1 Marketing Strategy

In order to increase 20% sale of Levis Jean, a series of marketing strategy is

launched, including improve the in-store atmosphere, customer-oriented sales

promotion and pre-sale promotion. These may induce the potential customers to buy

the products and retain current users.

6.1.1 In-store FM Radio

As mention in the previous section, music and sound are important as background

music creates desired moods (Solomon and Rabolt, 2004). In addition, in-store

music significantly affects consumers willingness to spend time in the store and

also to purchase more than they would in a less attracting manner (Rossiter and

Percy, 1992). However, our target audience does not have a positive attitude

towards in-store music currently, as shown in the survey.

6.1.1.1 Tactic

Levis FM radio will be introduced as the background music. Levis FM is

not be listened in the store, but also on the internet. When people would like to

listen to Levis FM but they are on the street, they can just enter the store to

listen and may look around in the store. These can increase the sale of the

products.

Research sponsored by the Musak Corporation reported higher sales per

43

customers when Musak was played, compared with no music or radio music

(Ware & Patrick, 1984). Levis FM plays a varied mix of old and new tunes as

well as look to break unknown American artists. The type of music played by

Levis FM, additionally, is what young people (i.e. the targeted audiences)

favour nowadays. They like DJs music that is the tune mixed music. The music

that slow the pace of the customers and stay in the store for longer time as in the

store context, it has been found that people shop for longer when exposed to

unfamiliar music, but feel they are shopping longer when the music is familiar

(Yalch & Spangenberg, 2000).

Levis FM plays some familiar tunes mixed in with those people have not

heard before, and the type of music is what the target customers would like, so

that they would be attractive by the unfamiliar music and enjoy it. These can let

the customers stay and shop in the store for longer time.

6.1.1.2 Rationale

Besides heat and light, music is the only thing that affects people for the whole

of the time they are in a store (Marketing News, 1996, p. 21). Music is well

known for its effectiveness in triggering moods. Hence, music is used as the

ultimate marketing tool which leaves a lasting impression on the consumer

(Chain Store Age, 2000).

Music and sound are important as background music creates desired moods.

44

Shoppers will stay longer in the store, it is easier turn them into customers by

the use of Levis FM as it creates the buying desire.

It is believed that Levis Jean can differentiate from its competitors by the

introduction of Levis FM as the most important of playing music is a

relatively easy for store characteristic to manipulate (Chain Store Age, 2000)

and differentiates a store from its competitors and reinforces the stores image

rather than serving as a distraction to shoppers (Sweeney and Wyber, 2002).

The role of music in reinforcing a stores image is particularly important in

young mens and womens fashion, partly because much of the merchandise is

becoming standardized (Marketing News, 1991, 1996; Chain Store Age, 1996;

Reda, 1998).

On the other hand, according to Griffiths and Tennyson (1997), radio is

common for young people to listen in daily life. Levis FM would like to be a

part of customers lives, launching a radio station shows the direction it is going

in a true lifestyle brand. Levis FM in the store can be coherent the brand

image from the advertising to the store. It is believed that the introduction of

Levis FM can boost up the sale from youthful customers.

45

6.1.2 Customer-oriented Sales Promotion

Sales promotion is defined as a direct inducement that offers an extra value or

incentive for the product to the sales force, distributors, or the ultimate consumer

(Raymond, 1980).

66..11..22..11 TTaaccttiiccss

In the assigned period, so long as the tertiary educating student proves with the

valid official student identity card, together with an old Levi's Jean before the

payment, then can enjoy the $100 cash back discount benefit in purchasing

assigned collections of Levis Jeans. The discounting collections will be

Levis 501 Reborn Jeans, Engineered Jeans and Levis Lady Style in

September, November 2006 and March 2007 respectively as according to the

questionnaire, these collections are the most popular among the youngsters.

Levis Loop has recently launched via the internet in May 2006, but according

to the questionnaire, our target audience is not familiar with the VIP

membership club. Supposedly, membership is an effective to reach our target

audience and build up a close relationship with them. Hence, an addition

promotion should be placed on the Levis Loop.

The purchased target audiences will be invited to join the Levis Loop straight

after their payment during the assigned discounting periods. Their data will be

input in our customer database for the further direct marketing used in the

46

coming future.

66..11..22..22 RRaattiioonnaallee

As mentioned in the previous section, the target audience in this campaign is the

tertiary educating students with the aged of 20-25 is also named as Generation Y.

They are shopping lovers as they have been acculturated into an environment

that provides more opportunities and reasons to shop than ever before (Backwell

and Mitchell, 2003) and they do not have great financial burden. They even treat

shopping as a recreation. However, the youthful customers are the recreation

discount seekers with infrequent discounting preference. It means that a

customer-oriented sales promotion is a significant marketing tool in this

campaign.

The initial purposes of the customer-oriented sales promotions in this campaign

are to encourage more frequent and/or multiple purchases, stimulate unplanned

purchase from the target customers. In this campaign, sales promotions are

playing an important role in marketing mix to push up the sale.

As the chosen period of customer-oriented sales promotions is not the often

on-sales period, it is the unexpected discount for our target group. The changing

plan used to encourage their purchase. If a customer can enjoy the cash back

discount to purchase a new Levis Jeans, this should be a gimmick, which can

increase the sale directly.

47

On the other hand, the tailored promotional on the target market can shift more

of their promotional efforts to direct marketing. The information Levis get

from the customer-oriented sales promotion will probably be used even more to

help build databases, and enable it to communicate individually with target

consumers and transform mass promotional tools into ways of doing one-to-one

marketing.

48

6.1.3 Direct Marketing

Direct marketing can have more control over how much of the market we reach.

We can aim fairly accurately at specific target customers (i.e. aged of 20-25

tertiary educating students and the original VIP members). In addition, since the

direct marketing is addressed to the individual and sent the mail directly to our

customers, it can achieve more personal one-on-one relationship.

66..11..33..11 TTaaccttiiccss

After the customer-oriented sales promotions, a pool of targeted members

assumedly is cumulated. The following would introduce a pre-sale promotion.

A pre-sale promotion period would be launched right a week before the crazy

summer sale for our customers in order to reinforce the relationship with our

loyal customers. During the period of 20-26 August 2007, any customers who

bring the direct mail from Levis can get an extra 10%off for Levis Jeans.


The pre-sale promotion can share several benefits. This can strengthen and build

up the relationship with our customers, especially loyal customers. The special

period only for our members is not only for cutting the price, instead, the more

important is demonstrating the premium and supreme status of our members.

49

6.2 Public Relations Strategy

In order to build up a closer relationship with our target audience (aged of 20-25

tertiary educating students), several public relations activities are carried out,

including press release, press conference and quarterly customer magazine.

6.2.1 Press Release

66..22..11..11 TTaaccttiicc

The latest factual, true and of interest to the medium as well as to our target

audience news about the promotional activities will be included in the press

releases.


Although press release does not have direct linkage with our target audience, it

can take advantage of free press coverage. Our target audiences are regularly

magazine readers, they can get Levis Jean latest information through media.

6.2.2 Press Conference


We will arrange the press conference a week before the main promotional

activities, for example, the first time of customer-oriented sale promotions (last

week of August). Media are invited to present the conference. The operation

team will be in-charge to explain the promotional activities in detail during the

conference.

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Press conference does not have direct linkage with our target audience, but it is

still a highly effective public relations tool in delivering the message to

customers through media, as our target group is reading magazines regularly.

During the conference, we will invite verity media, especially the magazines

editors. The press conference has an air of importance and creditability because

it uses a news format to present important promotions in the near future to the

media.

Media can kill an organization, but also can help it, so it is good to maintain a

better relationship with the media which can help us reaching the latest

information about Levis Jean to our target audience.

6.2.3 Customer magazine


A customer magazine, named as Levis Issue, will be issued at the beginning

of every seasons. Levis Issue is not a catalog for selling the products to our

customers, although it may contain pages offering services and/or products,

often packaged in special offers. For example, a cover story about the sales

promotions for tertiary educating students will be described in Levis Issue. In

addition, exclusive interviews with artists would be arranged to share their own

lifestyle and attire attainment.

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It will distribute free hard copy to our members of Levis Loop by direct mail.

Several copies are also placed in the store for the potential customers. On the

other hand, if our members are not willing to receive the hand copy, a website

version is available for them, as well as the prospective customers.

In the both version, we are welcome for any feedback, either negative or

positive, by providing the verity contact methods, such as mailing address,

telephone number and email address.


Customer magazine can act as a communication tool with the target audience. It

serves as a strategic information centre. Key information, such as the latest

update of the Levis Jean (Hong Kong), as well as new products, services,

offers and benefits, are all included in the quarterly publication. In this manner,

customers will have increased knowledge of Levis Jean (Hong Kong), which

could enhance the 2-way symmetrical communication with our customers and

retain a closer relationship.

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6.3 Media Strategy

In order to reach our target audience successfully throughout the campaign, especially

the customer-oriented sales promotions, a well-planned media strategy will be

analysis as following in details.

With the aim of get touch with our target audience, deliver the advertising message

effectively and bring customer to the point of sale, the media mix will consist of two

categories of media group. The first category is print media, which consists of

magazine advertising and billboard in MTR. Another category is broadcast media.

This mainly consists of our Levis FM in this campaign. These are the often-use

media channels as the previous advertising since as the results of survey, target

customers have recognition on the product through the advertising, yet, outdoor

signage is not included since it is costly and not very effective and, radio is excluded

because youngster often turns the dial when the commercials take place. Alternatively,

it newly adds the Levis FM as in-store announcement in this campaign.

6.5.1 Print Media


The print ad on magazines will mainly placed in 5 local weekly magazines

(New Monday, Milk, Tea, East Touch and Fashion & Beauty) while 2 monthly

fashion magazines (Jessica and Elle) additionally for promoting Levis Lady

Style.

53

A series of advertising will be launched two weeks before the customer-oriented

sales promotions as consumer-oriented sales promotion is part of a promotional

pull strategic that work along with advertising to encourage consumers to

purchase a particular brand and thus create dement for it.


Following the past advertising and promotion records of Levis Jean,

magazines will be used continuously as the dominate media channel. To act a

key media, it is expected that the coverage is high enough of our target audience.

In addition, according to the surveys result, our target audience usually hear

about Levis Jean from magazines (80%, Table 6) and most of the respondents

have reading magazines habit (96%) with at least once a week for one magazine

(Table 5). Hence, print ad in magazines should be the major channel to reach

our target audience.

The reason for choosing New Monday is that it reaches the forth-highest

readership among aged of 20-25 (about 29,400 readerships) in Hong Kong

(Appendix 4). The top three readership magazines are not chosen as they do not

have the same direction with Levis Jean in terms of target readers and content

while New Monday is a popular local entertainment magazine with the common

market, so does Levis Jean. Besides, Milk, Tea, East Touch and Fashion &

Beauty are chosen since they are the tradition media channels of Levis Jeans

as found in the previous advertising on Levis products, and achieved

54

satisfaction media coverage to target audience. The other two fashion magazines,

Jessica and Elle, are used on the promotion of the Levis Lady Style. It hopes

to reach specifically to ladies market.

66..55..22 BBiillllbbooaarrdd iinn MMTTRR


During the assigned periods of sales promotions, the MTR advertisements will

be placed along the escalator side-panels where passengers must pass through

between the concourse and platform or the ground. The side-panels entertain the

idle passengers when they are having the short escalator journey. In this

campaign, a series of escalator side-panels with number of 12, 10 and 7 panels

in Causeway Bay west station (entrance leading to Times Square), Mongkok

station and Tsim Sha Tsui station (Humphreys Avenue leading to Park Lane)

are chosen respectively. Three particular stations are chosen because those are

the most-shopping places for youngsters. The 12, 10 or 7-side-panel will string

together a feature story which brings out the message of special offers for

tertiary educating students. The escalator side-panels can use to show the way to

the store locations.

For example, during the first week of September for promoting Levis 501

Reborn Jeans, the former 6-side-panel state the information of the special offer

while the latter 6-side-panel is using the upward arrow to show the location of

Levis Store is just on the right hand side of the Times Square exit.

55


MTR, which is the supporting media is used to deepen our advertising message

and the impression of Levis Jean of target audience when they are traveling

almost everyday. The billboard in MTR is selected, as MTR is the most

common transportation with high patronage in Hong Kong. In 2005, MTR is the

second largest (25.2%) market shares of major transport operator in Hong Kong

(MTR Corporate Annual Report, 2005). In addition, another advantage of using

MTR is that no matter our high-street Levis Store or stores inside shopping

malls are mostly located on the route of MTR.

6.5.3 Levis FM


After launched of Levis FM, it will provide the latest offers information

in-store to our customers. To aim as ensure each target customer to be able to

receive the most newly and quickest store offers during the promotion periods.


Levis FM differs from public radio channels. Levis FM is our own radio

channels which provide the latest information of Levis Jean and pop music

that our customers prefer as the background music in-store. It serves a better

shopping environment to our customers. As well, when customers shop in

Levis store, they might wish to receive the latest Levis Jeans offers as the

first hand information. Moreover, since Levis FM plays in-store that

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eliminates the media clutters.

57

7. Campaign Evaluation

Evaluation is a significant part of a campaign since this can measure the effectiveness of

the campaign reliably. It offers a systematic and accountability assessment of the

campaign in attaining the objectives of this promotional campaign.

A survey will be conducted among the target audience (aged of 20-25 tertiary educating

students) after the campaign as a post-test in order to measure the effectiveness of the

campaign. The before-and-after survey is known as benchmark study (Wilcox, Ault and

Agee, 1995). It is a measurement of audience attitudes and opinions before and after a

promotional campaign. The benchmark study graphically shows the percentage

difference in attitudes and opinions of Levis Jean as a result of increased information

and publicity of this campaign. The statistical analysis of variance can help pinpoint to

what degree the change is attributed to the campaign efforts. Different kinds of questions

will be included as following:

7.1 Measurement of audience comprehension

As the advertising objective is to establish awareness among target audience,

questions about whether the target audience groups actually received the campaign

messages directed at them will be asked: whether they paid attention to those

messages, whether they understood the campaign messages, and whether they have

retained those messages in any shape or form.

Moreover, questions about asking whether the interviewers read Levis Jean news

58

story and which message about Levis Jean they remember, in order to measure

the audience awareness and comprehension. This type of questions is named as

day-after recall (Wilcox et. al., 1995).

7.2 Evaluation on the customer magazine

Questions about reader perceptions, the degree to which stories are balanced, kinds

of stories that have high reader interest, additional topics that should be covered,

credibility of the publication and the extent to which it is meeting Levis Jean

objectives will be asked, in order to improve the quality of the customer magazine.

7.3 Evaluation through database

As we have invited our target audience to be our members, their data (for instance,

the frequency of shopping in Levis Jean, which Levis Store did shop, what types

of products did they choose, when did they shop) are input in our database. We,

then, can analysis their shopping habits and estimate their shopping pattern, so as to

plan the future campaign.

59

8. Conclusion

Levis Jeans has entered the Hong Kong for about 10 years as a franchising business

operation format. However, keen competition is among fashion retailers. In order to stand

out from the competitors, brand differentiation is essential. The A promotional campaign

of Levis Jean is launched from September 2006 to August 2007.

The familiarity of Levis Jeans previous promotion activities is quite neutral according

to the surveys result. It is found that the youthful customers do not perceive the clear

messages from the previous promotion activities. It is time to suggest a promotional

schedule for Levis Jean.

With the analysis of situation, demarcation of the problems and opportunities, target

market and objectives, a whole set of one-year promotional campaign of 2007, such as

advertising and marketing strategies, are especially designed for addressing the target

markets of the product Levis Jean. It is expected that after launching of campaign and

with the campaign evaluation, the marketing objectives are found to be obtained

successfully, with the boost up the sale and build up the customer relationship with the

company.

60

Remarks

1 www.levi.com.hk

2 2005 6 8

3 www.admango.com

4 www.levistrauss.com

5 2004 2 1 Levi's

6 Sanna2005 11 21 Levi's

7 2003 4 15 Levi's TYPE

8 2004 4 16 The next 501 Levi's N3BP

9 2004 12 3 Levi's

10 Touch2005 7 19 Levis Square Cut

11 2006 6 29

12 2006 3 4

13 2005 7 15 Denim Summer

61

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