You are on page 1of 9

Marketing Management

Dr. Ahmed Shalaby

Marketing Analysis (SWOT) Levis Strauss & Co. (LS&Co.)

By: Haytham A. Saidum

Background History

The company was founded in San Francisco, California by Levi Strauss in 1853 primarily selling wholesale dry goods.

After few years ... they learned about the needs of the gold miners ... seeking a
durable pair of pants, Strauss designed a pants from a heavy brown canvas. ( THE WORLD FIRST PAIR OF JEANS) jeans were assigned a lot number 501 and sales had grown by year 1900.

By 1890 the popularity of their jeans and other dry goods had spread. Levis
During 1930s the western movies began to glamorize the blue jeans. Levis jeans became an even more valuable product during the World War 2. by the 50s & 60s Levis jeans became a fashion wear.

By year 1975, sales had reached $1 billion and rose to $2 billion in 1979.
Marketing Analysis

Marketing Analysis

Levis Strauss - The Company


Inspiring people with a pioneering spirit.

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 employs a staff of approximately more than 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 nish fabrics. With 2009 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.
Marketing Analysis

Historical SWOT Analysis


Strength
Internal

Weakness

Opportunities
External

Threats

50s - 60s - First American apparel trademark (Jeans). - Becoming a symbol of freedom, adventure. - Western movies began to glamorize blue jeans (1950) 80s - Levis 501 jeans were an icon & levis name is synonymous with jeans - Divisions seperation ------------------------------ Not focus on the Core product ... Diversication is too much ------------------------------ Discontinued many licensing arrangement. - Closed 40 Factories. - Streamed lined staff. Reducing Payroll.

- Woodstock rock festival (Levis were the essential fashion for emerging baby boom generation). - Gals Market

- Expanding retail opportunities/ Distribution (JC penny, Sears ...) ------------------------------ 36$ Million Advertising Campaign focused on the unique and personnel image reminding the customers of the uniqueness of levis brand.

------------------------------ Competition. - Shifts in the fashion trends. (Lee, Wrangler,..) - High price fashion image brands; CK, Bill Blass

Marketing Analysis

Historical SWOT Analysis


Strength
Internal

Weakness

Opportunities
External

Threats
- Losing the Brand loyalty of the traditional Levis 501 jeans.

80s

- Diversication (Offering products that can t in any lifestyle) - Corporate Strategy (Developing new strategy each division responsible for its Advertising)

- Not Focus - People need more - Slow growth among diversity. (Product Mix) primary Market. - Womens wear. - People see that levis is only Blue Jeans. - Competition (Lee, Wrangler..) - Motivating customers to remain within the brand Levis - Introducing New Casuals to motivate customers. - Opportunities in new markets.

End of - Introducing New the 80s - Casuals but with 90s continuing focus on their core jeans product.

- Competition

Marketing Analysis

General SWOT Analysis


Strengths : Levis enjoys high brand equity.
(People all around the world recognize the brand name.)

Levis products are unique and innovative in the style. A lot of variety is offered by Levis ranging from pants,

sunglasses to

skirts and shirts (Product Mix). The products are renowned and are considered as the most durable. Levis follows a high standard of quality. Enhancing the consumer retail experience. Weakness: Levis products are considered as expensive. Therefore a large percentage of people are reluctant to buy the products. Many Competitors with better prices. Weak in the information technology systems.
Marketing Analysis

General SWOT Analysis


Opportunities : Levis can do more well in the women section. This section is give less importance as compared to the men section. The kids 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: Intense competition in the worldwide apparel industry could lead to reduced sales and prices. The revenues are inuenced by general economic conditions.

Marketing Analysis

Thank You