Case Study : Jeans
K J SOMAIYA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH
They come in many styles and colors. straight. Often the term "jeans" refers to a particular style of pants called "blue jeans" and invented by Jacob Davis and Levi Strauss in 1873. jeans.
. especially members of the greaser (subculture). "blue jeans" are particularly identified with American culture. boot cut and flare. including skinny. became popular among teenagers. and have been so for decades. Lee. Jeans come in various fits. originally designed for cowboys. especially the American Old West. Jeans are trousers made from denim. however. and Wrangler. Starting in the 1950s. tapered. Historic brands include Levi's.INTRODUCTION
Jeans are now a very popular form of casual dress around the world.
In 1853. The 18th century At first. a man called Leob Strauss left his home in New York and moved to San Francisco. DYE: (v) to change the colour (n) used of a to PLANTATION: (n) a large farm where a single crop is grown
something. because they wore clothes made from it. called jean. in the eighteenth century as trade. serge de Nimes: serge (a kind of material) from Nimes (a town in France). Workers wore it because the material was very strong and it did not wear out easily. jean cloth was made from a mixture of things. jean cloth was made completely from cotton. It was usually dyed with indigo..where do the names come from? The word jeans comes from a kind of material that was made in Europe. chemical change colour The 19th century – The California Gold Rush In 1848. where he started a wholesale business. which made jean cloth a dark blue colour. The word 'denim' probably came from the name of a French material. was named after sailors from Genoa in Italy. supplying clothes. a dye taken from plants in the Americas and India. gold was found in California (not too far from San Francisco) and the famous Gold Rush began. and cotton plantations increased.
WHOLESALE BUSINESS (n)
buying large amounts of something &
selling it to shops
. slave labour.
The history of jeans
Denim and jeans . However. Strauss later changed his name from Leob to Levi. The material. The gold miners wanted clothes that were strong and did not tear easily.
The 1940's: War Fewer jeans were made during the time of World War 2.Rivets A big problem with the miners' clothes were the pockets. This was to advertise how strong Levi jeans were: even two horses could not tear them apart. Cowboys . Levi
OFF DUTY: (v) time when a soldier is not working
. A man called Jacob Davis had the idea of using metal rivets (fasteners) to hold the pockets and the jeans together so that they wouldn't tear. OVERALLS: (n) a loose fitting garment that covers the legs and chest
How jeans became popular
The 1930's: Westerns In the 1930's. PATENT: (v) if you patent something it is legally your invention and other people RIVET: (n) a strong metal fastener
cannot steal it. and he started making copper-riveted 'waist overalls' (as jeans were called then). The label showed a picture of a pair of jeans that were being pulled between two horses. Hollywood made lots of western movies. which easily tore away from the jeans. Levi sewed a leather label on their jeans. but 'waist overalls' were introduced to the world by American soldiers. but he didn't have enough money. he wrote to Levi Strauss and offered Strauss a deal if Strauss would pay for the patent. Strauss accepted. Davis wanted to patent his idea. In 1886. After the war.who often wore jeans in the movies-became very popular. so in 1872. who sometimes wore them when they were off duty. DUDE RANCH: (n) a holiday resort in the western US where
people can ride horses and pretend to be cowboys
Many Americans who lived in the eastern states went for vacations on 'dude ranches' and took pairs of denim 'waist overalls' back east with them when they went home.
competition with you
forbid.and the name stayed.
order people to stop doing something
. denim became popular with young people. Some schools in the USA banned students from wearing denim. Teenagers called the waist overalls 'jean pants' . The 1950's: Rebels In the 1950's. It was the symbol of the teenage rebel in TV programmes and movies (like James Dean in the 1955 movie Rebel Without a Cause). began to compete with Levi for a share of this new market.began to sell their clothes outside the American West. like Wrangler and Lee.
to match the 60's fashions: embroidered jeans. jeans became a symbol of 'Western decadence' and were very hard to get. The 1990's: Recession Things changed in the 1990s. many university and college students wore jeans. painted jeans. Denims made way for Dockers. The rock-and-roll generation gave way to the hip-hop crowd. The 1980's: Designer Jeans In the 1980's jeans finally became high fashion clothing. Different styles of jeans were made. The craze for jeans began to fade. For the dot-com dudes. the sartorial key was khakis. In many non-western countries.
.The 1960's: Hippies & the Cold War In the 1960's many. Blue collar made way for the white. A company that once had a 90 per cent of the market and made 90 per cent of its jeans in the US started to fray.. psychedelic jeans. Sales of jeans went up and up. US companies said that they often received letters from people all around the world asking them to send the writer a pair of jeans. when famous designers started making their own styles of jeans.. with their own labels on them. Today it has branched out to khakis and other apparel and it now parcels out 90 per cent of its production far and wide so that it can have a leg up on the fast evolving market.
jackets make the company more profitable. Weakness : They only focus mainly on youth that makes company weaker in marketing areas. Category : Apparel and Footwear Sector : Lifestyle and Retail Tagline : Go Forth USP : The brand id known for its denim apparels especially jeans. It is the oldest manufacturing company of jeans. bags. It is registered in more than 160 countries.LEVI’S
Parent Company : Levi Strauss & Co. and others create tough competition. lee. Threats : Brands like pepe. Variety of products like T-shirts. so a company solely targeting youth needs to
. Opportunity : The company has more than 5000 trademark registrations and pending applications in more than 180 countries. Competing prices with the rivals.
STP Segmentation : Target : Positioning : SWOT Analysis Strengths : The main strength of Levi’s is its popularity. The company’s products are sold in more than 60000 outlets and in around 110 countries worldwide. The choice of youth keeps on changing. shoes. It is a globally recognized brand all over the world. Losing market to newer and more trendier brands.
Positioning : With culture. The company has strict code of conduct and quality with almost negligible attrition rate. Tagline : Bring it on. Sector : Lifestyle and retail. USP : The brand id known for its denim apparels especially jeans. Lifestyle.
SWOT Analysis Strengths : 1.SPYKAR is available at over 450 MBOs across the country.
Segmentation : Men and women loving denims and western comfortable clothing.innovate a lot. The company has an in-house processing unit giving the company the competitive edge in consistently producing quality denims 4. Pantaloons etc.
. Globus. apart from the large format stores like Shopper's Stop.
Parent company : Spykar Category : Apparel and accessories. 2. and the exclusive outlets. Target : Young men and women from the urban areas. 3. The company is an Indian denim brand and hence has an Indian mass appeal.
The brand also has a stylish website giving complete information relating to its products. Threats: 1. The Company can do aggressive marketing in colleges and youth events. 2. 2.The brand has tough competition and there is high brand switching 2.5. Opportunity : 1. campaigns and stores.
Competitors 1. Pepe 3. Spykar can benefit. Similar designs available in other brands hence switching cost is less. Limited global presence as it restricted to a small market. Local market and international brands poses a risk.Wrangler
. Weakness : 1.Levis 2. With 100 per cent FDI in single brand retail getting the nod and 51 per cent in multi-brand likely to happen.
as Pepe Jeans. Positioning : Pepe Jeans is a premium and international brand. Parent company : Pepe Jeans Incorporation. Sector : Lifestyle and Retail Tagline : Pepe Jeans London. which is really innovative.
.3. Nitin and his two brothers later started their own company Sholemay Ltd trading. Category : Apparel and accessories. which houses casual wear with a heart of London in it. stylish changing with variety at an affordable price. PEPE JEANS History
In 1973 it was originally just a weekend road side stall on the Portobello Road Market located in west London established by three brothers: Nitin Shah. USP : A brand. Arun Shah and Milan Shah. STP Segmentation : Men and women who like contemporary style of fashion with a rebellious attitude. Target : Young urban Men and women from the upper middle class.
2. Pepe Jeans is present over 100 countries and employs more than 5000 employees all over the world. The brand has signed international celebrity brand ambassadors which enhances the brand equity. The brand is the fastest growing denim brand and is 500 million denim and casual wear brand. The brand has entered the elite segment of the top four denim producers in the world. 4. The brand has always been constantly producing unique silhouettes. 7.
. 3. The brand had a different view of selling jeans and was against hanging them and even fought with the retailers to change this fashion. Weakness : 1. The brand has a heavy brand following and is has a strong financial position in the denim industry. The brand has several competitors hence high brand switching. 8. The brand uses extensive advertising where the brand often teased the boundaries of acceptable social imaginary and norms. Opportunities : 1.SWOT Analysis Strengths : 1. 5. 2. The brand can enter into the kid’s wear segment. 6. The brand should expand its products and services throughout the world. which was a big hit. which the brand is very famous for across Europe. which had a big attraction among young consumers. Constantly changing fashion trends means inventory issues 2.
Threats : 1.
. 2. levis is increasing never like before. USP : Comfort and style at affordable rates. Levis 3. Lee 2. Switching cost between brands is very low. Wrangler
Parent Company : VF Corporation Category : Apparel Sector : Lifestyle and Retail Tagline : There's a bit of the West in all of us. so there are regular price wars among competitors. Increasing Competition from brands like Lee.
With increased interest in their own flagship brands mass merchandisers like Walmart are beginning to decrease shelf space allocated to these premium denim brands. 2. Denim industry is expected to grow at a faster rate 2. More global penetration and enhanced visibility. They sell their jeans at mass merchandisers such as Walmart and Target. Wrangler has a wide distribution channel. Threats 1. Opportunity 1. Good marketing and advertising at stores and print ads. Increasing competition 3. 3. 2.Companies are using new media to reach consumers 3. Lot of options available means high brand switching.
SWOT Analysis Strengths : 1. Strong brand presence 4. Weakness : 1. lasting quality.
. They also have their own flagship specialty stores located at many places.Segmentation : Casual wear Target : Men and women from the urban upper middle class Positioning : Tough and rugged.Competition from standalone specialty stores means limited market share growth 2. Fluctuating currency values and economic scenario.
Parent company : KewalKiran Clothing Limited Category : Apparel and Accessories Sector : Lifestyle and Retail Tagline : Worship the night. like Shopper’s Stop. 2. innerwear.
Segmentation : Fashion conscious and trendy youth Target : Youth from the Urban upper and upper middle class. Levis 2. Central. Killer for her. What’s your cut? USP : India’s first international denim brand. eyewear
Strengths : 1. Lifestyle and their exclusive brand outlets like Klounge in all Tier-1 cities. Strong brand presence with over 1600 points of sale in the form of MBO’s with chains a. footwear. Diversification into other product line like Killer Tees. Lee 3.1. Positioning : Denim brand with an attitude.
3. South-East Asia since 1994.
2. Africa. Weakness 1. Brand has been termed as India’s first international denim wear brand with it exporting denim wear to Middle East. Innovative ad-campaigns have made a strong connect with the youth which is their main target audience. The government tax policies on apparel are set to increase the unit cost. The brand is facing increasing competition from the other sibling brands of the parent company like Lawman and Integriti which too are emerging in denim wear. Threats 1. The brand can also start online stores for selling its merchandise as it has emerged as an effective medium for selling. The brand is facing increasing competition from the other sibling brands of the parent company like Lawman and Integriti which too are emerging in denim wear. Though the brand has stretched its portfolio with many diversifications it still has to heavily depend on denim wear for its revenues. The brand effective in its advertising can also look at green campaigns which is attracting a lot of attention these days.
2. The entry of several international players in the retail industry after opening up of FDI
3. USA. Highly fragmented fashion industry which would involve low customer loyalty. The company can look to expand its manufacturing capabilities in emerging markets which would be a great boost for the brand. Though the brand has stretched its portfolio with many diversifications it still has to heavily depend on denim wear for its revenues. Opportunity
1. Self-procurement and manufacturing facilities has been a great strength for the brand as it 5 units with an annual capacity of over 30 lakh pieces. 3.to make it a complete lifestyle brand.
Market Share based on Gender :
.would also pose as a threat for the brand. Competitors 1.e.
The Market Share for Levis is the highest i. Flying machine. etc. Pepe Jeans 2. Levis 3. Diesel
Now let us see the market share of the above brands in India. GAS. followed by Pepe at 14%. 49%. Other brand includes UCB.
.Average rating :
In the end looking at all the brands and considering the brand loyalty of all the brands.
http://en.conclude that Levis has the highest brand loyalty.org/wiki/Jeans http://en.wikipedia.wikipedia.org/wiki/Pepe_Jeans