Topic –consumer behaviour towards jeans in jalandhar

2009 Edition -The report focuses on the US denim jeans market – value, growth
rate, and segments. It discusses the key trends prevalent in the market. The report
provides comprehensive analysis of the men’s and women’s segment of the market.

Abstract:
In the present marketing scenario, competition plays a vital role. There is a need for
improvements of new products to face various challenges in the world market. Because
of this, companies are working on innovative ideas to bring improvements in their
product design, efficiency, look and better workability and so on. Now-a-days, jeans
market have become the middle class people’s comfortable mode of fashion. Out of all
the available brands/companies. Many surveys have shown considerable difference
between Levis and the others. Observation of consumer behavior is very important for
any kind of manufacturer for making further improvements in their products. In this
study, consumer behavior is observed in two time frames, i.e., 2004 and 2008, and then
comparison is made to highlight and discuss the changes.

INTRODUCTION

The apparel industry has been severely impacted by the global economic downturn but
the state of the Levis jeans industry is relatively better. The levis industry continues to
hold an advantageous position over other apparel categories, owing to longer life span of
jeans as compared to other apparel items. Levis defies the fundamental structure of the
global economy. While other industries are outsourcing their work to cheaper foreign
labor, high cost of manufacturing the jeans in the US is, in fact, a selling point for levis
jeans industry.

US retailers of jeans have cut down orders and also their workforce to minimize the
impact of economic recession. Manufacturers and retailers are also adopting various
pricing strategies in order to offer more entry level products. The premium segment
continues to grow but Levis manufacturers are reducing prices to focus on cheaper items.
Consumers still plan to buy jeans but they are more price-conscious now.

The levis industry is highly competitive with many new brands entering the market
during the last few years. Most of these brands were focused on premium levis. These
premium denim brands are strategically planning to gain a competitive edge in market
share and retail space. Moving ahead in this situation will require companies to surpass
consumers' expectations on price and value.
Type Private

Industry Clothing

Founded 1853

Founder(s) Levi Strauss

Headquarters San Francisco, California, U.S.

Area served Worldwide

Richard L. Kauffman Chairman of the Board

Key people
John Anderson President and CEO

Products Jeans

Revenue US$ 4.303 billion (2008) [1]

Owner(s) Descendants of Levi Strauss

Employees 11,400 (2008)

Divisions Levi's, Dockers, Signature by Levi Strauss & Co.

Website Levi Strauss Homepage

Levi Strauss & Co. (LS&CO) is a privately held clothing company known worldwide for
its Levi's brand of denim jeans. It was founded in 1853 when Levi Strauss came from
Buttenheim, Franconia, (Kingdom of Bavaria) to San Francisco, California to open a
west coast branch of his brothers' New York dry goods business. Although the company
began producing denim overalls in the 1870s, modern jeans were not produced
until the 1920s. The company briefly experimented (in the 1970s) with
employee ownership and a public stock listing, but remains owned and
controlled by descendants and relatives of Levi Strauss' four nephews.

Organization
Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions:
Levi Strauss Americas (LSA), based in the San Francisco headquarters; Levi Strauss
Europe, Middle East and Africa (LSEMA), based in Brussels; and Asia Pacific Division
(APD), based in Singapore. The company employs a staff of approximately 10,500
people worldwide, and owns and develops a few brands. Levi's, the main brand, was
founded in 1873 in San Francisco, specializing in riveted denim jeans and different lines
of casual and street fashion.

From the early 1960s through the mid 1970s, Levi Strauss experienced explosive growth
in its business as the more casual look of the 1960s and 1970s ushered in the "blue jeans
craze" and served as a catalyst for the brand. Levi's, under the leadership of Jay Walter
Haas Sr., Peter Haas Sr., Paul Glasco and George P. Simpkins Sr., expanded the firm's
clothing line by adding new fashions and models, including stoned washed jeans through
the acquisition of Great Western Garment Co. (GWG), a Canadian clothing
manufacturer, acquired by Levi's. GWG was responsible for the introduction of the
modern "stone washing" technique, still in use by Levi Strauss.

Mr. Simpkins is credited with the company's record paced expansion of its
manufacturing capacity from fewer than 16 plants to more than 63 plants in the United
States from 1964 through 1974. Perhaps most impressive, however, was Levi's expansion
under Simpkins was accomplished without a single unionized employee as a result of
Levi's' and the Hass families' strong stance on human rights and Simpkins' use of "pay
for performance" manufacturing at the sewing machine operator level up. As a result,
Levi's' plants were perhaps the highest performing, best organized and cleanest textile
facilities of their time. Levi's even piped in massive amounts of air conditioning into its
press plants, which were known in the industry to be notoriously hot, for the comfort of
Levi's workers.

2004 saw a sharp decline of GWG in the face of global outsourcing, so the company was
closed and the Edmonton manufacturing plant shut down. The Dockers brand, launched
in 1986 which is sold largely through department store chains, helped the company grow
through the mid-1990s, as denim sales began to fade. Levi Strauss attempted to sell the
Dockers division in 2004 to relieve part of the company's $2 billion outstanding debt.

Launched in 2003, Levi Strauss Signature features jeanswear and casualwear. In

November 2007, Levi's released a mobile phone in co-operation with ModeLabs. Many
of the phone's cosmetic attributes are customisable at the point of purchase.
History
Jacob Davis was a tailor who frequently purchased bolts of cloth made from hemp from
Levi Strauss & Co.'s wholesale house. After one of Davis' customers kept purchasing
cloth to reinforce torn pants, he had an idea to use copper rivets to reinforce the points of
strain, such as on the pocket corners and at the base of the button fly. Davis did not have
the required money to purchase a patent, so he wrote to Strauss suggesting that they go
into business together. After Levi accepted Jacob's offer, on May 20, 1873, the two men
received U.S. Patent 139,121 from the United States Patent and Trademark Office. The
patented rivet was later incorporated into the company's jean design and advertisements.
Contrary to an advertising campaign suggesting that Levi Strauss sold his first jeans to
gold miners during the California Gold Rush (which peaked in 1849), the manufacturing
of denim overalls only began in the 1870s.

Levi Strauss started the business at the 90 Sacramento Street address in New York. He
next moved the location to 62 Sacramento Street then 63 & 65 Sacramento Street. By
changing the location of the store the company began to become more successful. Levi
got the idea for the jeans, then referred to as "waist overalls," by Jacob Davis, one of
Levi's regular customers. He said that by placing "metal rivets at the points of strain-
pocket corners, and at the base of the button fly. The two men got together and got a
patent for their idea and this is how the jean was invented.

Modern jeans began to appear in the 1920s, but sales were largely confined to the
working people of the western United States, such as cowboys, lumberjacks, and railroad
workers. Levi’s jeans apparently were first introduced to the East during the dude ranch
craze of the 1930’s, when vacationing Easterners returned home with tales (and usually
examples) of the hard-wearing pants with rivets. Another boost came in World War II,
when blue jeans were declared an essential commodity and were sold only to people
engaged in defense work. From a company with fifteen salespeople, two plants, and
almost no business east of the Mississippi in 1946, the organization grew in thirty years
to include a sales force of more than 22,000, with 50 plants and offices in 35 countries.

In the 1950s and 1960s, Levi's jeans became popular among a wide range of youth
subcultures, including greasers, mods, rockers, hippies and skinheads. Levi's popular
shrink-to-fit 501s were sold in a unique sizing arrangement; the indicated size was related
to the size of the jeans prior to shrinking, and the shrinkage was substantial. The
company still produces these unshrunk, uniquely sized jeans, and they are still Levi's
number one selling product. Although popular lore (abetted by company marketing)
holds that the original design remains unaltered, this is not the case: the company's
president got too close to a campfire, and the rivet at the bottom of the crotch conducted
the fire's heat too well; the offending rivet, which is depicted in old advertisements, was
removed.

1990s and later

By the 1990s, the brand was facing competition from other brands and cheaper products
from overseas, and began accelerating the pace of its US factory closures and its use of
offshore subcontracting agreements. In 1991, Levi Strauss faced a scandal involving six
subsidiary factories on the Northern Mariana Islands, a US commonwealth, where some
3% of Levi's jeans sold annually with the Made in the USA label were shown to have
been made by Chinese laborers under what the United States Department of Labor called
"slavelike" conditions. Today, Levis jeans are made overseas.

Cited for sub-minimum wages, seven-day work weeks with 12-hour shifts, poor living
conditions and other indignities, Tan Holdings Corporation, Levi Strauss' Marianas
subcontractor, paid what were then the largest fines in US labor history, distributing more
than $9 million in restitution to some 1,200 employees. Levi Strauss claimed no
knowledge of the offenses, then severed ties to the Tan family and instituted labor
reforms and inspection practices in its offshore facilities.

The activist group Fuerza Unida (United Force) was formed following the January 1990
closure of a plant in San Antonio, Texas, in which 1,150 seamstresses (primarily Latinas
— some of whom had worked for Levi Strauss for decades — saw their jobs exported to
Costa Rica. During the mid and late 1990s, Fuerza Unida picketed the Levi Strauss
headquarters in San Francisco and staged hunger strikes and sit-ins in protest of the
company's labor policies.

The company took on multi-billion dollar debt in February 1996 to help finance a series
of leveraged stock buyouts among family members. Shares in Levi Strauss stock are not
publicly traded; the firm is today owned almost entirely by indirect descendants and
relatives of Levi Strauss, whose four nephews inherited the San Francisco dry goods firm
after their uncle's death in 1902. The corporation's bonds are traded publicly, as are
shares of the company's Japanese affiliate, Levi Strauss Japan K.K.

In June 1996, the company offered to pay its workers an unusual dividend of up to $750
million in six years' time, having halted an employee stock plan at the time of the internal
family buyout. However, the company failed to make cash flow targets, and no worker
dividends were paid. In 2002, Levi Strauss began a close business collaboration with
Wal-Mart, producing a special line of "Signature" jeans and other clothes for exclusive
sale in Wal-Mart stores until 2006. Levi Strauss Signature jeans can now be purchased at
several stores in the US, Canada, India and Japan.

According to the New York Times, Levi Strauss leads the apparel industry in trademark
infringement cases, filing nearly 100 lawsuits against competitors since 2001. Most cases
center on the alleged imitation of Levi's back pocket double arc stitching pattern (U.S.
trademark #1,139,254). Levi's has sued Guess?, Esprit Holdings, Zegna, Zumiez and
Lucky Brand Jeans, among other companies.

By 2007, Levi Strauss was again said to be profitable after declining sales in nine of the
previous ten years. Its total annual sales, of just over $4 billion, were $3 billion less than
during its peak performance in the mid 1990s. After more than two decades of family
ownership, rumors of a possible public stock offering were floated in the media in July
2007.

In 2009, it was noted for selling Jeans on interest-free credit.

Advertising
Levi's marketing style has often made use of old recordings of popular music in
television commercials, ranging from traditional pop to punk rock. Notable examples
include Ben E King ("Stand By Me"), Percy Sledge ("When A Man Loves A Woman"),
Eddie Cochran ("C'mon Everybody!"), Marc Bolan ("20th Century Boy"), Screamin' Jay
Hawkins ("Heart Attack & Vine"), The Clash ("Should I Stay or Should I Go?"), as well
as lesser known material, such as "Falling Elevators" by MC 900 Ft. Jesus and "Flat
Beat" and "Monday Massacre" by Mr. Oizo.

Many of these songs were re-released by their record labels as a tie-in with the ad
campaigns, resulting in increased popularity and sales of the recordings and the creation
of iconic visual associations with the music, such as the use of a topless male model
wearing jeans underwater in the 1992 adverts featuring "Wonderful World" and "Mad
about the Boy" and the puppet, Flat Eric, in the ads featuring music by Mr. Oizo.

Limitations of the study:-

a) In this study it is not possible to collect the opinion of all the customers
owing to personal constraints. So the assumptions are drawn on the basis
of the information given by the respondents.
b) The study needs to be completed within a specified time of one weak and
in certain restricted areas. So the findings cannot be generalized as a
whole

Topic –consumer behavior towards jeans in jallandhar

Objective for study-

-To know the Consumer preference for jeans
-To study existing customer satisfaction of Levi’s brand

QUESTIONNAIRE
PART A
Dear Students,

My name is Viprandra Tarun and I am pursuing MBA from Lovely

Professional University. I am doing a research on consumer
behavior towards jeans of Levi’s and for the accomplishment of this
research questionnaire is used, so please be unbiased while filling
this questionnaire. This information will be kept confidential.

1) Gender
Male Female

2) Your age group

Below 20
20-30
30-40
40-50
50+

3) Occupation
Student
Professional
Business owner
Other (please specify)
4) Monthly salary
Below 20k
20k-30k
30k-40k
40k-50k
50k+

5) Qualification
10th

12th

Graduation

Post Graduation

PART B

6) choose your favorites brand.

Levi’s
Pepe
Lee cooper
Sparker
Flu
Other (please specify)

7) Give rating to the company according to your perception?

Instruction -1 is low and 5 is high

Company/factor Style fitting material current price quality

 trend
Levi’s
Pepe
Lee cooper
Sparker
Flu
Other(please
specify)

8) Which factor do influence when you purches jeans?

Factor/rank 1(low) 2 3 4 5(high)

Style ______ ______ _______ _______ ________

Fitting ______ ______ _______ _______ ________

Material ______ ______ _______ _______ ________

(e.g organic)

Brand ______ ______ _______ _______ ________

Current ______ ______ _______ _______ ________

Trend

Price ______ ______ _______ _______ ________

9) how much do you spend on jeans (per month)?

Below 1000

1000-1500

1500-2000

2000-2500

2500-3000
 3000+

10) How often would you wear jeans?

Frequently (everyday)

Very often (5 days a week)

Regularly (3days a week)

Few (once a week)

never

11) Price range of jeans you have paid for

Below 1000

1k-2k

2k-3k

3k-4k

4k+

12) Do you the brand image/advertising affects your choice of

purchasing?
Strongly agree

Slightly agree

Don’t know

Slightly disagree

Strongly disagree

13) Where are your sources from?

Website
 Blog
Newspaper
Magazine
T.V
Celebrity
Word of mouth
Magazine (please specify)

PART C

14) Are you satisfied by Levi’s service?

Yes No

15) Give the rating to Levi’s in according your perception.

(low)1_______2________3________4________5(high)

16) What type of Levi’s jeans do you prefer?

Raw jeans
Washed jeans
Don’t mind
Other (please specify)

17) Do you think Levi’s is a best brand in jeans market?

Strongly Agree--------Agree--------Neutral-----------Disagree-----------
Strongly Disagree
18) If Levi’s not available in your shopping mall then what would do?
Shift another brand

Shift another shoping mall

19) If you choose to shift then which Brand will you prefer ( 1 – most
preferred; 5 – least preferred)
Levi’s
Pepe
Lee cooper
Sparker
Flu

20) Suggestion/ Feedback

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_________________________________________________________

THANK YOU

Consumer Behavior towards Jeans in Jalandhar

FACTOR ANALYSIS

Factor Analysis- Factor analysis has been applied on the responses provided by respondents.
Factor analysis is a good way of identifying latent or underlying factors from an array of
seemingly important variables (Nargundkar, 2008). An exploratory factor analysis was performed
to investigate/ find out the variables/factors that affect the performance of the employees in
Leader valves Ltd.
KMO and Bartlett’s Test- Measures of sample adequacy such as Bartlett’s test of spnerecity
and KMO value showed that data was fit for factor analysis. Generally, KMO value greater than
0.5 is desirable. As Table 4.1 show that KMO value is 0 .429, it makes the data not fit for factor
analysis and Bartlett’s test also not satisfied the condition of significance of chi square value.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .429

Bartlett's Test of Sphericity Approx. Chi-Square 365.327

Df 136

Sig. .000

Principal Component Analysis- It was used for extracting factors and seven (7) factors were
retained depending on Eigen values and
variance explained by each factor. The standard practice normally used is that all the factors with
an Eigen value of 1 or more should be extracted. clearly shows that there are 7 factors having
Eigen value more than 1. Total variance explained by extracted seven factors was 68.324%.
 Total Variance Explained

Initial Eigen values Extraction Sums of Squared Loadings

Component Total % of Variance Cumulative % Total % of Variance Cumulative %

1 2.441 14.357 14.357 2.441 14.357 14.357

2 1.902 11.191 25.548 1.902 11.191 25.548

3 1.795 10.559 36.106 1.795 10.559 36.106

4 1.694 9.964 46.071 1.694 9.964 46.071

5 1.530 9.000 55.071 1.530 9.000 55.071

6 1.202 7.072 62.142 1.202 7.072 62.142

7 1.051 6.182 68.324 1.051 6.182 68.324

8 .875 5.145 73.470

9 .833 4.899 78.369

10 .666 3.915 82.284

11 .649 3.817 86.101

12 .601 3.536 89.637

13 .517 3.040 92.678

14 .428 2.517 95.195

15 .392 2.305 97.500

16 .258 1.520 99.020

17 .167 .980 100.000

Extraction Method: Principal Component Analysis.

Rotated Component Matrix- The results were obtained through orthogonal rotations with
variance and all factors loadings greater than 0.40 were retained. Clearly depicts that factor 1 is
a linear combination of variable/factor number-6, &9; factor 2 is combination of variable
number-14, 15, 12, 13 & 8 is combination of variables and so on.
 Component Matrix
S.N Statements Component
o
1 2 3 4 5 6 7

6 Customer perception for the customer’s favorite brand .257 -.168 .225 -.062 .410 .116 -.654

Customer behavior for style.

7a
-.066 .140 .604 .303 -.180 .327 .081

7b Fitting
-.002 .558 .584 -.280 -.175 -.111 -.035

7c

Material -.105 -.031 .666 .473 .083 -.024 .032

7d

Trends
-.484 .382 -0.061 -.368 .080 .120 .262

7e
Price -.478 .369 -.276 .342 -.020 -.122 .189

7f Quality
-.502 .171 -.395 .395 .191 -.031 -.215

8 How much money can customer can spent on jeans purchase?

.084 .137 -.053 .363 .612 .347 .353

9 Customer like to jeans wear

.486 .210 .030 .074 -.504 -.105 -.047

10 How important is brand image to purchase?

.557 -0.144 .121 .034 .089 -.226 .451

11

Which source is help to customer to purchase jeans? -.507 -.673 -.037 -.196 -.090 .093 -.048

12 Customer satisfaction for Levi’s jeans

-.490 -0.033 .371 -.409 .103 .050 .071

13
Customer perception for Levi’s product .283 -.017 -.049 -.422 .144 .721 .120

Type of Levi’s jeans customer preferences

.352 .200 -0.158 -.515 .376 -.387 .098
14
 Component Matrix
S.N Statements Component
o
1 2 3 4 5 6 7

6 Customer perception for the customer’s favorite brand .257 -.168 .225 -.062 .410 .116 -.654

Customer behavior for style.

7a
-.066 .140 .604 .303 -.180 .327 .081

7b Fitting
-.002 .558 .584 -.280 -.175 -.111 -.035

7c

Material -.105 -.031 .666 .473 .083 -.024 .032

7d

Trends -.484 .382 -0.061 -.368 .080 .120 .262

7e
Price -.478 .369 -.276 .342 -.020 -.122 .189

7f Quality
-.502 .171 -.395 .395 .191 -.031 -.215

8 How much money can customer can spent on jeans purchase?

.084 .137 -.053 .363 .612 .347 .353

9 Customer like to jeans wear

.486 .210 .030 .074 -.504 -.105 -.047

10 How important is brand image to purchase?

.557 -0.144 .121 .034 .089 -.226 .451

11

Which source is help to customer to purchase jeans? -.507 -.673 -.037 -.196 -.090 .093 -.048

12 Customer satisfaction for Levi’s jeans

-.490 -0.033 .371 -.409 .103 .050 .071

13
Customer perception for Levi’s product .283 -.017 -.049 -.422 .144 .721 .120

Type of Levi’s jeans customer preferences

.352 .200 -0.158 -.515 .376 -.387 .098
14

15 Customer can shift another brand lack of Levi’s product.

Interpretation:

Hence by using factor analysis, various factors that affect the customer behavior are
there, as the objective of the study specified. From 17 statements 7 factors are there and
naming of these factors is done as per the statements/ variable it included. It is clear from
factor loading that the customer will not go to other brand in certain condition. The
customer are not price conscious and give the much money for like jeans trends is the
most important factor that affects the performance of the market. The customer give the
important to brand image and the customer like the Levi’s brand but some change the
customer want like quality the customer is not satisfied by the quality of the Levi’s jeans,
so in last price no matter customer want good quality brand name fitting and some other
factor in jeans market in jalandhar. The price, company can increase but the company
should use the good marketing strategy to promote the jeans product in jalandhar. Like
advertisement and celebrity endorsement.

Submitted to : Submitted By :

Mr. Anand thakur Viprandra Tarun

Reg. No.- 10904736

Roll No- 1904 A13