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TABLE OF CONTENTS

 Introduction

 History

 Market segmentation, targeting and


positioning

 Marketing mix
 -Product
 -Price
 -Place
 -Promotion

 SWOT analysis

 Conclusions

 Recommendations

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INTRODUCTION:
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.

VALUES:
Levi Strauss & Co. has four major core values. These are
 -Empathy
 -Originality
 -Integrity
 -Courage

Levi Strauss & Co. says,


“Our corporate values -- empathy, originality, integrity and courage -- are the
foundation of our company and define who we are. They underlie how we compete
in the marketplace and how we behave.”

MISSION STATEMENT
The 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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ASPIRATION STATEMENT :
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.

VISION STATEMENT:
When LS & Co. describe the future of Levi they are talking about a building on the
foundation they have inherited: affirming best of their Company’s tradition, closing
gaps that may exist between principles and practices and updating some of their
values to reflect contemporary circumstances. 

HISTORY
Today, the Levi’s® 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 1910’s, LS&CO.
received “Blue Ribbon” highest award for waist overalls in Panama. One-piece
garment for women was introduced to work and play. In 1930’s, the Great
Depression stroke & demand for Levi’s jeans, shirts and jackets declined.
.
In 1991, the first original Levi’s 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 Levi’s ® engineered jeans TM, the reinvention of


jeans for the new generation. It named No. 2 for America’s 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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Products, Positioning, and Market
Segmentation
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.

SCANNING THE MARKETING


ENVIRONMENT

Like other successful companies, Levi’s 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
company’s 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 Levi’s are
monitoring the following six major “Environmental Forces”:

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

Market Segmentation
Market segmentation is the selection of groups of people who will be most
receptive to a product. The most frequent methods of segmenting include

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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
how segments are defined, however, they are characterized by considerable
change over time. The readings in this section exemplify areas of rapid change.

BASIS OF MARKET SEGMENTATION


 Demographic Segmentation
 Geographic Segmentation
 Psychographic Segmentation
 Behavioral Segmentation

Target Market:
501® JEANS targets its market by evaluating the wants of customers. Mostly Levi’s
targets its market among the following classes:
 Upper Class
 Upper Middle Class

Target Market Strategy:


Target market strategy adopted by Levis is basically on having long-term relations
with their customers and to provide them with better product.

Benefits of Segmentation:
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.

Conditions for effective segmentation:


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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Limitation of Segmentation:
Because of segmentation, Levi’s 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.

Marketing Research:
According to Levi’s marketing logistic manager, their company conducts a research
to know
 What’s in trend?
 What are the needs of customers?

Sources of Data:
Levi’s 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.

MARKETING MIX:
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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Marketing mix

Product Place

Product variety Channels


Quality Target market Coverage
Design Assortments
Features Locations
Brand name Inventory
Packaging Transport
Sizes Prices Promotion
Services
Warranties List price Sales promotion
Returns Discounts Advertising
Allowances Sales force
Payment period Public relations
Credit terms Direct marketing

PRODUCT:
“Product means set of tangible and intangible attributes which may include
packaging, color, price, quality and brand plus the seller’s services and reputation.
A product may be a place, service, good or promotion.”

BRANDS

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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 world’s largest quality products.
LS & CO. is basically divided into 3 sub brands i.e. Levi’s, Dockers and Levis
Strauss Signature. All the three brands are providing different quality products.

LEVI’S®
Invented in 1873, Levi's® jeans are the original, authentic jeans. They are the most
successful, widely recognized and often imitated clothing products in the history of
apparel. Levi's® jeans have captured the attention, imagination and loyalty of
generations of diverse individuals.
As the inventor of the category, the Levi’s brand continues to define jeans wear with
widest range of products available from quintessential classics, such as the famous
Levi's®501® Original jean to favorite fits and styles in our Red Tab™ and Levi's®
Premium collections.

DOCKERS®
Launched in 1986 in the United States, Dockers® brand products and
marketing played a major role in the creation of a new apparel
category for men's pants and the shift to casual clothing in the
workplace. Dockers® Khakis quickly became the No. 1 khaki pant brand in the
United States .
In 1988, the brand launched Dockers® for Women, a feminine interpretation of
Dockers® brand apparel. The line offers fashionable tops, dress and casual pants
and a full range of accessories — designed to fit a variety of different body types and
sizes. Today, the Dockers® brand has expanded to more than 50 countries in every
region of the world with a complete assortment of stylish and innovative products —
including a full line of tops, footwear, outerwear and accessories — for a broad
range of consumers

LEVIS STRAUSS SIGNATURE®


The Levi Strauss Signature™ brand was launched in 2003 exclusively for
consumers who shop in the mass channel. The brand gives value-conscious
consumers access to high-quality, affordable and fashionable jeans wear from a
company and name they trust.
The Levi Strauss Signature™ brand includes a collection of denim and non-denim
pants, shirts, skirts and jackets for men, women and children all designed with the
high quality.

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PRODUCT ATTRIBUTES
Products are usually considered to be the No.1 factor contributing towards building
goodwill of a firm. A product should be unique, durable, reliable, comfortable and
economical.
Following are some of the basic attributes of LS&CO.’S products:
 Variety
 Features
 Design
 Color
 Size

VARIETY
Levi’s 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 :

 Jeans
 Shirts
 Cotton Pants
 Accessories
 Belts
 Sunglasses
 Wallets
 Lady’s Bags
 Jackets
 Shoes

FEATURES:
Features are competitive tools that differentiate the company’s products from its
competitor’s products. Following are some of the main and distinctive features of
Levi’s products.

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Comfort
Levi’s jeans and other products are comfortable enough to be worn even at the
times of protest, war, cultural revolution, relative peace and pure fun.

Durability

The two figures on the patch of Levi’s 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. Levi’s jeans are available in
different styles for men and women.

PRICE:
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 costs
to distribute a product and costs to promote it.

List Price:
All products are sold at listed price, which are settled by the Levis Company
(Singapore). There is no discount to offer.

Credit Sales:

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Also deal with credit sales, but doesn’t overcharge to the customers, pay
themselves to the bank (3 %). Products are only sold for cash or on credit cards.

Discount:
Don’t give the discount to our customers, even to the employees of the
Levis. The prices are fixed.
Payment Period & Credit Terms:
Payment Period & Credit Terms are settled by the company.

Price Determination:
During the determination of the price, company does not
consider 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, that’s why Levis doesn’t face
much competition in their business. But yet there are some competitors e.g.

 Pepe Jeans
 Leeds (US Apparels)
 GAAP Jeans
 Cambridge

 Their prices are not influenced by the competitors.

 The stuffs, design and fashion which don’t 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.

PLACE:
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Placement objectives:-.
 To equalize the demand and supply of products at all places.
 To provide desired products at proper place.
 To fulfill the requirements of every locality according to the taste
of the people.
 To increase the brand equity by reaching every corner of the
world.
Channels:-
Channels of Distribution:
LEVIS distributes JEANS by the Channel Members that is through retailer and
wholesalers. Levi’s Strategy for Choosing channels is according to Product: Mostly
Levis is limited to his wholesalers, because the unit value is high and cost related
issues occur.

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

Placing according to Class and Attributes:


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

Placing according to Competitors:


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

Placing according to Price and Quality:


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

Placing according to Technology:


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.

Location:-
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.

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Asia Pacific:
Australia, Bangladesh, Brunei, China, Guam, Hong Kong, India,
Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, the Philippines,
Singapore, Sri Lanka, Taiwan and Thailand.

Middle East:
Bahrain, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia and
United Arab Emirates.

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

Latin America:
Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El
Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay
and Venezuela.

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PROMOTION:
Promotion objectives:
o To inform, persuade and remind the potential customers about its
products
o Increase awareness and build primary demand
o To build strong brand equity.
o Build Company’s image as innovator.
o To create bonds between public and Levi Strauss by helping the
people.
o To create the importance of its products

Sales promotion:-
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 levi’s is done by creating public relations. The sales
promotion of LEVIS targets the end consumers. Since the Levi’s JEANS are in

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

Levi’s uses the following promotional strategies to promote its product.

 Personal selling
Personal selling by the representative of the organization takes place face to face
with final consumers.

 Mass Selling
Levis does mass selling to inform a bulk of persons by advertising.

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

 Competitive advertising
The advertisement given by the LEVIS stresses on the demand of the product and
enhancement of its features.

 Institutional advertising
Levis uses institutional advertising to promote company’s image by saying
Many Copy the Red Tab No One can copy the Originals.

Advertising mediums:-
    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.

Fashion Magazines & 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.

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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.

Sales force:-
Levi’s holds a very big sales department as it is working in many countries.

Level of Distribution Intensity:


Levi’s is using selective but intensive distribution level for the distribution of its
products .

Sales Offices and Sales Branches:


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

Public relations:-
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. ”

GUIDING PRINCIPLES:
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.

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-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.

ISSUES:
These principles are applied to two interrelated issues:

Preventing the Spread of HIV/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-supported
programs seek to prevent the spread of HIV/AIDS

Increasing Economic Development and Education


Opportunities
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
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)

Happenings:-
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 a
coupon. And customers can win a new LG air conditioner.
2) 501® Scarred
What's your story? The best story wins an iPod.
3) Levi's® Lady Style
Get a Swarovski designer tattoo with every purchase of "Levi's® Lady
Style"
4) Father's Day
Purchase Dockers Product worth Rs.2000 and above to get a branded
Dockers Cap

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Tools used by Levi Srauss & Co. for measuring
Customer Satisfaction:
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

SWOT Analysis:
Strengths :
 Levi’s enjoys high brand equity. People all around the world recognize the
brand name.

 Levi’s products are unique and innovative in the style.


 A lot of variety is offered by Levi’s ranging from sunglasses to skirts and
shirts.

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

 Levi’s follows a high standard of quality.

Weakness:

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 Levi’s products are considered as very expensive. Therefore a large
percentage of people are reluctant to buy the products.

 As no discounts are present and products are sold at fixed prices many
customers are lost.

 Levi’s does not provide any services like free delivery etc.

Opportunities:
 Levi’s can do more well in the women section. This section is give less
importance as compared to the men section.

 The kid’s section, which has been started from few years, should also be
given proper attention to gain customers.

 Sales promotion can be increased by increasing the advertisements expenses


so as to enjoy a large number of customers.

Threats
 The threats that Levi’s faces are the competitors.
CONCLUSIONS AND
RECOMMENDATIONS :

CONCLUSION:

Along with the collection of above data , we also did a personal survey from the
customers of Levi’s. A questionnaire was generated which was then distributed
among the customers. The questionnaire appeared like this:

Survey :
Name(optional):

Q#1 : State the extent to which you agree with the following statement: “Levi’s
products provides a lot of satisfaction?”
 Strongly Disagree

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 Disagree
 Neither agree nor disagree
 Agree
 Strongly agree

Q#2 : Do you give preference to Levi products over other company’s similar
products?
 Very unlikely
 Unlikely
 Neither likely nor unlikely
 Likely
 Very likely

Q#3 : What is the competitive advantage that Levi’s has over others?
 Comfortability
 Brand name
 Durability
 Variety
 Style
 Innovativeness
 Any other ? please specify:

Q#4: Levi’s lacks:


 Comfortability
 Durability
 Variety
 Style
 Innovativeness
 Price Affordability
 Any other ? please specify:

Q#5: You mostly buy products from levi’s:

 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! 

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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 dissatisfied
D) 5% were somewhat dissatisfied
E) 3% were completely dissatisfied

The pie chart we obtain from the data is :

3%
5% completely
satisfied

somewhat
15% satisfied

neither
satisfied
nor
dissatisfied

60% somewhat
17% dissatisfied

completely
dissatisfied

RECOMMENDATIONS:
From the survey results and the data we collected from various peoples, sites we
recommend levi’s to work on following areas

 First of all the Levi’s products are considered as the most durable product.
Therefore that area is secured. But the areas which levi’s lacks are comfort
ability and inexpensiveness.

 If levi’s lowers down its prices to some extent the sales volume could be
increased 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.
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 The brand name of Levis is well recognized. We saw in the survey results
that most people just to maintain their high status buy Levi’s products.

 Levi’s pays its maximum attention to the men’s wear. Although the women
section and kid’s sections are present but they are not full filling the
requirements much.

 The kid’s section, which is just in start, should be given attention to attract
more 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

 ***************************************
*****

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