About

History

Japan - demographics, type of market, culture,

India - demographics, type of market, culture,

US - demographics, type of market, culture,

Entry strategy comparison

Marketing Mix comparison -

Product (Customization or standardization comparison),

price comparison

Place,

Promotion (message conveyed in the promotion for different countries)

Culture In Japan

Japanese scored higher on abstract, psychological attributes than did Americans, who tended to

qualify their self-descriptions. In general, Japanese people are taught to be thoughtful and
respectful to others. They put emphasis on harmony and peaceful relationships, and try to avoid
conflicts as much as possible. In addition, there is a famous Japanese word “Giri and Ninjo ”
which refers to sympathy and compassion to others.(https://blog.japanwondertravel.com/why-
japanese-people-do-this-18980#toc8)

secularism has been a prominent aspect of Japanese society since the introduction of the
Constitution of Japan(1947). Family (kazoku) is a foundational part of Japanese society., An
individual’s identity, reputation, obligations and responsibilities are deeply connected to their
family, Japan has a rapidly aging population, Children only tend to move out of home upon
marriage or to relocate for employment., Weddings are generally considered to be a serious
event that commemorates the joining of two families., drink the beverage near the machine and
recycle the packaging in the nearby bin., Much of Japanese daily life is prescribed by many
implicit norms, rules and social expectations surrounding conduct and behaviourJapan is more
diversified and heterogeneous than many portrayals suggest. Collectivist characteristics found in
Japanese society extend into business culture., Building and maintaining relationships are a
fundamental part of Japanese business culture. People generally expect and desire long-lasting
partnerships. (https://culturalatlas.sbs.com.au/japanese-culture/japanese-culture-
religion#japanese-culture-religion)

As such, emerging Japanese designers are increasingly taking center stage with next-generation
hand-made couture from upcycled apparel and recycled textiles. “A new way to consume is on
the rise. It’s all about on-demand, customisation, and sustainability,” says Kye Shimizu, one of
the brand’s co-founders. The United States, in particular, has exerted a strong influence on
Japanese fashion. The constant media exposure to American fashion designers and their styles
has influenced, initially, the Japanese buyers. However, seeing demand shifting, local designers
started(https://www.fibre2fashion.com/industry-article/8744/japanese-fashion-history-trends-
innovation-and-sustainability)

Westerner but that also contains a powerful and distinctive traditional cultural aesthetic. This can
be seen, for example, in the intricate detail, miniaturization, and concepts of subtlety that have
transformed imported visual art forms.(https://www.britannica.com/place/Japan/The-arts)

A good way to survey the broader field is to examine the most important aesthetic ideas that
have arisen in the course of the tradition, all of them before aesthetics was formally
established as a discipline: namely, mono no aware (the pathos of things), wabi (subdued,
austere beauty), sabi (rustic patina), yūgen (mysterious profundity), iki (refined style), and
kire (cutting).(https://plato.stanford.edu/entries/japanese-aesthetics/)

Culture in India
it continues to be one of the most ethnically diverse populations in the world. Indians generally
place a high value on harmony and unity with others, keeping a strong nexus with their
community and relatives. A unified and interdependent community or family provides a support
system that an individual can rely on daily.

Instead, diversity is celebrated alongside an inventive and entrepreneurial spirit. In this sense,
many Indians are very adaptive and creative (https://culturalatlas.sbs.com.au/indian-culture)

Ancient Indians celebrated money like no other.

(https://www.dailypioneer.com/2014/vivacity/indians-have-always-been-money-
minded.html)

Based on a historical overview of the origins and development of Hinduism and its adoption by
Buddhism, the authors argue that tolerance, a calm demeanor, deep optimism, and lack of
clinging to time are the main features of the Indian mind and behavior. It is characterized and
outlined.(https://pubmed.ncbi.nlm.nih.gov/8571791/)

A large portion of India's population faces economic stress due to low incomes and lack of
financial education. It is important to understand the general attitudes towards money among
Indians from diverse socioeconomic, demographic and cultural backgrounds.
(https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3683299)

In the Indian market, the decade leading up to 2010 witnessed a phenomenal surge in celebrity
endorsements. In 2001, his familiar face appeared in 25% of all TV ads. By 2008, this percentage
he reached 60% and is still increasing. According to the same survey, celebrities are on such a
high pedestal in India that over 60% of Indian brands use celebrities to promote their products,
compared to 25% of them in the
US.(https://www.readcube.com/articles/10.2139%2Fssrn.2809124)

About LEVI STRAUSS & CO.

Company Overview:
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 Bettelheim,
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.

Founded in 1853, Levi Strauss opened a wholesale dry goods business in San Francisco that
became known as Levi Strauss & Co. Seeing the need for work pants that could withstand more
extreme conditions, he and a tailor, Jacob Davis created the first jeans. In 1873 they obtained a
U.S. patent for a "waist jumpsuit" with metal rivets at the stress points. The first product line
with batch number '501' was created in 1890.

Till day they are one of the global leaders in jeanswear and the world’s largest brand-name
apparel companies. Levi's, Dockers®, Signature by Levi Strauss & Co.™ and Denizen® brands
are their own brands under which they design and market jeans, casual wear and related
accessories for men, women and children. The net revenues generated by Levi Strauss & Co. in
the year 2020 was $4.5 billion. The headquarters are in San Francisco, Brussels and Singapore.
Worldwide there are 14,800 employees under the company. Its products are sold in more than
110 countries in estimated 50,000 locations worldwide through a combination of chain retailers,
department stores, online sites and a global footprint of approximately 3000 retail stores and
shop-in-shops.

The primary sourcing of the products is done from independent contract manufacturers in
approximately 26 countries around the world. No country has more than 20% of the production.
They require all third-party suppliers and subcontractors that manufacture or finish the products
to comply with their supplier's Code of Conduct regarding working conditions, environment and
employment practices. Additionally, licensees must ensure that their manufacturers comply with
the standards.

Brand Portfolio:
Levi Strauss & Co. brands are among the high-profile names in apparel, known for their quality,
originality and integrity. The brands are Levi’s, Dockers, Signature by Levi Strauss & Co.,
DENIZEN from Levi’s and Beyond Yoga. Every brand has a different identity and is positioned
in that way.

Brand Brand Identity Inception Tagline/ Catchphrase

Levi’s Classic American style 1873 Levi’s - the original

and effortless cool. The leader in denim.
clothes celebrate rugged
individuality and self-
expression.

Dockers Authentic khaki 1986 Quality products for

provides men with moments that matter.
 smarter, more Wear the Pants
comfortable and more
versatile clothes for
every occasion.

Signature by Levi Authentic style, classic, 2003 Iconic, purposeful

Strauss & Co. versatile and heritage to styles fundamental to
everyone. The clothes life timeless denims
are straightforward,
uncomplicated and no
compromise on comfort
or quality

Beyond Yoga Buttery softest 2005 took overby Levi We're here to celebrate
Strauss & Co. in 2021
activewear and who you are with the
athleisure created, led comfort you deserve,
and designed for because you should
women of every shape, never have to work out
size and lifestyle in to fit in.
which you can sweat,
chill and believe in.

DENIZEN from Levi’s Celebrates bold, 2010 Style without

positive energy. For compromise. Such
those who are confident flexibility so you never
and constantly in miss a beat
motion.

History:

Throughout history, Levi Strauss & Co. have changed markets, workplaces and the world. Take
a look at some of their proudest heritage moments.

Timeline-
Origin:

The company traces its origin to Levi Strauss, a German immigrant with a background of
working with his brothers in their dry goods wholesale business in New York City, emigrated to
Gold Rush San Francisco in 1853. He started his own dry goods business to serve small general
stores of the American West. In 1858, the company was listed as Strauss Levi importers clothing,
etc. in the San Francisco Directory with Strauss serving as the sales manager and his brother in-
law as its manager. Over the next 20 years, he built his business into a fruitful operation, making
a name for himself as a well respected businessman.

Jacob Davis, a regular customer of Levi Strauss & Co. and a tailor by profession came with the
idea to put metal rivets at point of strain, like pocket corners and the base of the button fly on the
pair of pants for better durability. These riveted pants were an instant hit. Jacob immediately
decided to patent the process, but needed a business partner to get the project off the ground. He
immediately remembered Levi Strauss from whom he bought the fabric and studs for his pants.
Davis wrote to Levi suggesting that the two hold the patent together. A savvy businessman, Levi
saw the potential of this new product and agreed with Jacob's proposal. The two men were
granted #139,121 on May 20, 1873 from the U.S. Patent and Trademark Office.

Soon, the first riveted garments were made and sold. The first jeans were made from denim, a
traditional fabric for men's workwear. Jeans became a huge success in a very short time. (It
should be noted that they were called "waist suits" or "jumpsuits" until the 1960s, when the baby
boomers adopted the name "jeans.")

May 20, 1873 is considered the "birthday" of Blue Jeans. Denim pants have been used as
workwear for many years. It was the first use of rivets in these traditional trousers that gave birth
to what we call jeans today. In 1890, the rivet patent went into public domain, lot numbers were
assigned the products that were being manufactured, and "501" was used to designate the famous
copper-riveted waist overalls.

In 1886, The Two Horse Trademark depicting two horses attempting to pull apart a pair of
Levi's® waist overalls was introduced. The logo symbolized the strength of the clothing in the
face of competition.

Modern jeans emerged in the 1920s, but their sales were largely limited to working-class people
in the western United States, such as cowboys, lumberjacks, and railroad workers. What might
seem like a simple contribution to the greater avenue of gender equality, Levi's really pushed the
boundaries when it created its first line of women's jeans in 1934.
Western women have recognized the need for LS&Co. women's work pants. The concept of
Lady Levi's was born out of necessity, but it was all modern, given that women's pants were not
accepted as mainstream clothing until decades later.

The classic Red Tab device as it's legally known is undoubtedly a timeless Levi's® icon. Who
would have thought that a small piece of cloth could remain a powerful mark for a global brand?
It has not only protected the quality it stands for. In the 1950s and 1960s, Levi's® began adding
different colored tabs to other Levi's® clothing. For example, products treated with the new Sta-
Prest process had black labels with gold lettering. This prevented wrinkles. But according to
LS&Co, the red tag on the 501® jeans hasn't changed. Historian Tracy Panek.

International Division-

By the 1965s, the popularity of jeans, jackets and other Levi’s® products led the company to set
up offices and factories throughout Europe and Asia. From the 1950s to the 1980s, Levi's jeans
became popular with a variety of youth subcultures, including greasers, mods, rockers, and
hippies. His popular Shrink-to-Fit 501 from Levi's was sold in its own sizing. The size listed is
the size of the jeans before they shrunk, and the shrinkage was considerable. The company went
public in 1971, operating in 50 countries. In the 1980s, due to increased competition and
financial difficulties, Levi Strauss closed nearly 60 manufacturing facilities in the United States
and began moving production overseas.

In 1986 Levi Strauss & Co. brought withinside the United States a brand new line of informal
pants known as Dockers; the logo became launched in Europe in 1994. Dockers Khaki
revolutionizes business attire, making khaki the pants of choice for young professionals and
leading in creating workplace-appropriate casual wear. After various complaints in 1991
regarding the standards at which Levis was getting manufactured, Levi Strauss launched a
comprehensive code of conduct for all contract factories and licensees. The terms of the contract
cover ethical standards, legal and environmental requirements, standards for community
involvement and combating child and forced labor, disciplinary action, working hours, wages
and benefits, freedom of association, discrimination, and health. and safety.

The business enterprise later launched (2003) the Signature through Levi Strauss & Co. brand, an
extra inexpensive line of denims and informal wear, The brand serves retail shoppers through
mass channels, giving them access to products from a company with a strong heritage of quality
denim apparel. Offer to value oriented consumers.

Levi Strauss leads the garb enterprise in trademark infringement instances, submitting almost a
hundred court cases towards competition over a six-yr length from 2001. Most instances middle
at the alleged imitation of Levi's again pocket double arc sewing pattern (U.S. trademark
#1,139,254), which Levi's filed for an indicator in 1978. Levi's has efficaciously sued Guess,
Polo Ralph Lauren, Esprit Holdings, Zegna, Zumiez, and Lucky Brand Jeans, amongst different
companies. By 2007, Levi Strauss had returned to profitability after nine of the last decade's
declines in sales. Total annual sales are just over $4 billion for him, $3 billion less than his peak
in the mid-1990s. After more than 20 years of family ownership, rumors of a possible IPO hit the
media in July 2007. In 2011 Levi Strauss employed Chip Bergh as CEO. He was credited with
turning the agency around as he instituted numerous changes, including modernizing its e-trade
department and increasing remote places markets.

The Eureka Innovation Lab was opened in 2013, which is a research and development facility
dedicated to design ideation and prototyping. In the year 2015, Levi's New Women’s DEnim
Collection launched globally. The seven hundred collection is stimulated with the aid of using
the authentic 1934 women's blue denims Lot 701. The pants consist of extra stretch at the side of
genuine factors just like the Two-Horse Design patch. In 2016, they opened up a Screened
Chemistry, Water<Less® and Worker Wellbeing programs to the larger industry in hopes of
making a greater impact on the planet and those working in their apparel supply chains.
Designed for the urban commuter, jacquard technology woven into this Levi's® jacket lets you
access music, navigation, and communications like emails and calls with a swipe of the sleeve
was launched in 2017 as The Levi’s Commuter Trucker Jacket with Jacquard Debuts.
Last Year only Levi Strausshas entered into the activewear market by acquiring the yoga apparel
brand Beyond Yoga, launching the jeans maker into activewear. Beyond Yoga will operate as a
standalone division within the business. Co-founder Michelle Wahler will continue to serve as
Beyond Yoga CEO, reporting to Bergh (Levi).

Levi’s Vision:

“We are the embodiment of the energy and events of our times, inspiring people with a
pioneering spirit.”

Levi’s Mission:

“ To sustain responsible commercial success as a global marketing company of branded

apparel.”
Levi’s Marketing Strategy

167-year-old blue jeans company Levi Strauss is accelerating its brand business strategy to meet
changing retail habits. Retailers should pay attention to changing values. Retailers need to realize
that value seekers are not the market segment. Everyone wants value. Different people appreciate
different things. We are all "worthy" buyers.
In an interview with The Wall Street Journal, Levi Strauss' CFO spoke about the brand's clothing
lines and the pricing differences between third-party retailers (Target, e.g.) and its direct-to-
consumer sales. The CFO said, “If you think about product hierarchy, there's a better product and
a best product. The good product is the jeans (sic) for about $40. The better product is anywhere
between $60 and $80. And the best product is upward of that. US wholesale is, for the most part,
a great product market. Our consumer facing business is getting better and better.

A good, better, best price range strategy can be death wish marketing.It can ruin the most
amazing branded business strategy. The Good Better Best Price strategy is all about price, not
value. Price segmentation is a manufacturer's approach. The manufacturer determines the price.
But it is the customer who determines the value. Price and value are not the same. For example,
the lowest price level is intended to appeal to "price sensitive" customers. However, the meaning
of the highest price tier appeals to price-conscious customers. Price segmentation is a risky
strategy.

The best approach is to develop a strategy that focuses on customer perceived value. It's a shame
that the word "value" has become synonymous with "price". Some brands say they are targeting
budget "value brands" to so-called "value-conscious" consumers. We are all value conscious, and
that includes those who pay an ultra-premium price.People value different things for different
needs in different situations. What the price point strategy doesn't take into account is the fact
that we all want to believe that, of the brands we can afford, we've bought the one that best suits
our particular needs in our particular situation. Price segments are not customer oriented.
Customer-centric segmentation should focus on contextual needs, not just price.

CFO of Levi Strauss says he understands the diverse needs of his customers. Buyers want
valuable and positive brand experiences. For this reason, Levi Strauss owns many fixed
installations. Levi Strauss' strategy is to implement a need-based segmentation approach to
channel management.

Levi Strauss pursues a hybrid strategy targeting online clothing ordered directly from bricks-and-
mortar stores, bricks-and-mortar stores and other retailers such as Target, Macy's and Kohl's.
However, each price point should be of great value. In uncertain times, we want the best value
for money, regardless of price.

(https://www.forbes.com/sites/larrylight/2020/08/07/levi-strauss-and-its-good-better-best-
strategy/?sh=3d4b8115ad73)

Levi’s Roll Out

Denim Industry in Japan

In the 1950s, Japanese students began exploring stores on US military outposts, encountering
American products and culture, including jeans and other fashions. This interest in clothing grew
into a love of worn vintage denim. It's not hard to understand why Japan is so popular for denim.
It was the affection of Japanese youth to the Japanese who created a black market, says Levis.
Following in the footsteps of their American peers, the Japanese youth began to embrace the
subversive, rebellious aesthetics of movie stars like James Dean and Marlon Brando and all
things American. Completely swept away by the image of rock and roll.

The country is known for its handcrafted, quality products with great attention to detail. They
often use decades-old machines and practice vintage sewing techniques to maintain a quality
often left behind in Western countries. (https://www.textiletoday.com.bd/kojima-japans-denim-
capital/)

Japan still loves vintage denim, both authentic and imitation. The desire to recreate the feel and
look of decades ago is one of the reasons for using vintage machinery and techniques. But there
is also a market for genuine jeans that are over 70 years old. . I especially like Levi's. These jeans
are extremely popular, with 1940s jeans selling for over $3000 domestically. A particularly rare
Levi's price is $40,000 for him.

Luxury brands put a strain on your wallet, but Japanese companies also produce more affordable
jeans that meet high quality standards. Especially in the last few years, the price of selvedge
jeans, which are popular in Japan, has dropped significantly, making it easier for people on a
tight budget to purchase. And for the true connoisseur and connoisseur, the Japanese brand has
many well-made, one-of-a-kind products.

(https://blog.bizvibe.com/blog/uncategorized/japanese-jeans-leading-world-denim)

The Asian market can be a challenge for American denim brands (they're suffering from the
Japanese raw denim craze, after all), but Pride says they also believe "Japan's denim culture is
more highly regarded than the rest of Asia (and most of the world)," he says. This means there is
a deep-seated appreciation for Levi's and its rich history.
(https://www.levistrauss.com/2014/08/01/marketing-levis-in-asian-markets-qa-with-vp-of-brand-
marketing-neil-pryde/)

The denim market is expected to grow from an estimated US$57.3 billion in 2020 to US$79.1
billion by 2026, according to a January 2022 report by consulting firm Report Linker. Japan and
Canada are expected to grow at 2.6% and 4% annually, respectively.
(https://www.technofashionworld.com/denim-market-by-2026/)

Entry Strategy In Japan

Levi Strauss entered Japan in April 1971 with the opening of the Levi Strauss (Far East) Limited
(Hong Kong) branch. Previously, its existence was limited to a minimum turnover level of his
from importers. Hiratsuka Logistics Center opened in November 1973, and Levi's Strauss started
domestic production of denim products in June 1974 and started selling through wholesalers in
addition to retailers.. Levi Strauss also started importing products from the United States in 1978.
1982 Levi Strauss Japan Co., Ltd. (LSJ) was incorporated as his company operating
independently. In June 1989, 4.1 million shares of his LSI stock were listed on the Tokyo OTC
market in an initial public offering. The sale raised S$80 million, but Levi Strauss still held an
85.444% stake in the Japanese company. LSJ's strategy was to maintain consistency and a
long-term view. focuses on advertising, continuously introduces new products in addition to
traditional styles, develops systems, good relationships with suppliers, contractors,
wholesalers and retailers, and staff is trained. LSJ had successfully established itself in Japan.

A key success factor (KSF) in the Japanese market was Levi's successful implementation of its
localization strategy. Japan is one of the world's top consumers of luxury goods, so there are
many brands in Japan that have a strong tendency to do so. Therefore, in order for the product to
sell well in Japan, it must be modified to suit local tastes in Japan. And they don't care if the
price is high.

This position is primarily due to LSJ's marketing strategy, which is explained below.

● Widely advertised in TV commercials and men's magazines targeting young men. Levi's
creates a cool American casual image.
● To ensure full accessibility. They had contracts with outlets of various types, from small
jeans specialty stores mainly in urban areas to the nationwide chain stores with large sales
areas mainly in suburbs.
● They didn't just offer traditional jeans imported from America. Not only, but also the new
jeans conform to the Japanese body characteristics.
● Asians have a better physique than Americans, so they made products to fit the height of
Japanese people. Also, all products are made in Japan.
● In Japan, Levi's products featured high-end lines, attracting many fashion people, in line
with current fashion.

The Critical Success Factors for Levi’s to turn out a success were:

Localization

Made in Japan

High-end lines

Products to fit Japanese people

Customer value driven marketing strategy

Levis entry in Japan - after World War 2, various companies from Ushave entered the market
and one of them was levis. Since the country was poor they adopted the jeans trend of the US. In
1974, Levis started the manufacturing in Japan

Denim Industry in USA

Entry Strategy in USA

Denim Industry in India

The current market for fashion retail, valued at Rs 3,61,000 crore (US$ 54 billion), is predicted
to increase at a promising CAGR of 8.1% over the following ten years, reaching Rs 7,88,500
crore (US$ 118 billion) by 2028 (“Indian denim wear market growing at CAGR of 11 percent”).

Despite a slowdown in garment exports and the expansion of the local market, the denim market
in India is still growing at a steady CAGR of 15% to 18% annually. Denim is also growing at the
fastest rate as a garment material. The installed capacity, which is now at 1,200 million meters, is
expected to increase to 2,000 million meters over the next three to four years due to the
extremely high demand for the fabric.

The following criteria suggest that industry’s future is favorable:

● Increased disposable incomes.

● Rapid expansion of the retail industry.

● The country’s pervasive trend of westernization

● Booming online retail market

● Demography of the young population (15-29 years old) with higher purchasing power.
 ● Due to its comfort and style, denim is a popular choice among many different customer
sectors.

● Young people’s preferred preference for denim due to its varied association.

● In India’s smaller cities and rural areas, women and young people are using denim
products more frequently.

The government's efforts to support the nation's textile industry will make the future years
crucial for the company. The government will soon announce its bold plan to take 20% of the
global textile market and help the home industry grow to $650 billion by 2024–2025. The
objective can be accomplished by placing a heavy emphasis on investments, enhanced labor
legislation reforms, and skill development.

Future years are likely to see the Indian denim industry reap the rewards of the government's
numerous steps to support the nation's textile industry and ensure its steady progress, which will
be further fueled by the various demand drivers for this sector in India (An Overview of the
Indian & Global Denim Industry || Fashion Industry in 2022).

Entry Strategy in India

Levi Strauss & Co (Levi's), a leading international premium denim wear manufacturer, began its
operations in India in 1994 by establishing a wholly owned subsidiary under the name Levi's
Strauss India Ltd. Levi's product range in India includes the iconic Levi's 501 Jeans, Levi's Red
Tab and Levi's Diva. Levi's has been recognized by young people in India as the most trusted,
stylish and iconic brand in the Indian denim clothing segment. Across India, Levi's operates
approximately 250 specialty stores in approximately 200 cities. His three pillars of Levi's
branding were sophistication, innovation and pricing. In India, Levi's entered the premium
segment with its signature brand through price and positioning differentiation. The main reason
for their success lies in their marketing strategy with different price points for different
categories and segments of jeans. The company then decided to replace its signature brand with a
new brand called 'Denizen' to conquer the middle segment of the Indian market. India's He is a
new denim brand that aims to target young people between the ages of 18 and her 28, offering

the best fitting and quality denim clothing at affordable prices.(Levis Strauss in India:

Creating a Youth Brand Authors: Jimmy Thakkar Published by: Amity Research Centers
Published in: 2013)

Levi's of India focused on the values of empathy, courage, integrity and originality. It reflects
our legacy of responsible corporate citizenship. It guides a commitment to philanthropy and
community involvement. Support programs such as economic empowerment of young people
and women, educational programs and awareness raising Awareness of HIV AIDS.

Levi’s with the image of American avtar of bold, stylish and sexy entered the Indian market and
made its first endorsement with Akshay Kumar. Levi's played a strategy card in India, signing
youth icon Akshay Kumar as a big-money brand ambassador set by the media at 12 to 15 Cr.
True to the brand's bold and youthful spirit. In 2015, the managing director of Levis stated that,
their strategy in the Indian market will be to limitthe franchisee partners, invest in only them and
ensure the inventory is very tight. The store sin India shold have similar appearances as globally
Levi’s stores have. He also added the product strategy to change from designing specific
products to adopting global products in India.
(https://www.livemint.com/Companies/hBBuEH3W0gRnM9R5FCZsKM/Levi-Strauss-to-
launch-its-global-products-simultaneously-in.html)(https://thestrategystory.com/2021/04/10/
levis-brand-strategy/)

Another strategy Levis adopted was through to focus on the Indian women and took an initiative
with them and started “I shape my world” with a message to empower women and run the worl
their way. The first campaign advertisement was released in 2017 and it never stopped after that.
In 2018, Levi Strauss & Co. Ltd, started expanding its presence in small towns, the company is
trengthening its base in metro and tier 1 cities by building larger stores. Also in tier II, III & IV
strategy is to continue.(https://timesofindia.indiatimes.com/business/india-business/levis-
expands-presence-in-small-towns-strengthens-base-in-metros/articleshow/71650338.cms)

Levi’s recently has oopened stores in Mumbai and Kolkata. The new stores are the large stores,
the store design follows the new fleet of NextGen store formats, allowing consumers to immerse
themselves in the brand experience through fit, fit and style. The store is all about experience and
inspiration, helping consumers find the right Levi's® fit that leads to authentic self-expression
through the tailoring experience.(https://www.indianretailer.com/news/levi-s-strengthens-retail-
footprint-opens-largest-store-in-india.n13637)

Marketing Mix

PRODUCT -

Standardization and Customization

When an organization wants to maintain strong centralization and consistency across its products
and marketing activities, it chooses a strategy called standardization. With this approach, the
product and how it is marketed is largely consistent around the world, with little variation in the
marketing mix from country to country. The competitive advantage of the optimal combination
of price, quality and reliability can be achieved. One of the advantages of this strategy is lower
operating costs.

Choose a localization/customization strategy when your organization wants to align its products,
messaging, and marketing activities with the needs and preferences of local markets around the
world. A study conducted by Kotler found that 80% of U.S. exports require one or more
customizations, with the average product requiring customizations such as labels, packaging,
materials, colors, names, product features, promotional themes, etc. , requires at least 4-5
customizations of 11 different elements. , media, design, price, promotion. In this diversified
world, an organization has to adapt and change their goods and services accordingly.
Localization may include: 1) modifying an existing product to meet the needs of a target local
market, or 2) creating an entirely new product to meet the needs of a target local market.

In reality, global marketing is not a proposition of either full standardization or local control of
products and marketing, or both. In fact, a successful global approach is anywhere on the
spectrum, from close global coordination on program details to lose agreement on product ideas.
Most organizations believe that flexibility is essential if they are to take advantage of the global
opportunities available to them. The right answer for any business depends on organizational
structure, leadership and operations. product categories; markets involved; and other factors.
Both strategies offer attractive benefits as well as costs and risks. Most companies find ways to
balance the options available with a focus on how to maximize success in their target market.
(https://opentext.wsu.edu/mktg360/chapter/1-9-standardization-and-customization/)

With this argument, it can be said that the global brand Levi’s focuses on both standardization
and customization for its customers. The brand has attained the level of success by creating a
network which serves its all types of customers. The application of both the strategies can be
seen below.
The images shown above are the various collections Levi’s offers from its website at locations in
Japan, USA and India. There are few collections which are similar in all the 3 countries. For
example, Levis’ X Made & Crafted, Levi’s Silver Tab, Levi’s Fresh are the three
indistinguishable collections in the countries. This is a clear example of standardization, where
the brand has standardized a few of its collections in the global market. Along with these
collections Levi’s also standardized its style/lot number/fit number of jeans. For example the
iconic 501 original, 502, 511, 512, 513 and more style numbers are homogenous all over the
globe. (https://www.levi.jp/men/pants/jeans/%E3%82%AA%E3%83%AA
%E3%82%B8%E3%83%8A%E3%83%AB
%E3%83%95%E3%82%A3%E3%83%83%E3%83%88%20%E3%83%9F
%E3%83%87%E3%82%A3%E3%82%A2%E3%83%A0%E3%82%A4%E3%83%B3%E3%83
%87%E3%82%A3%E3%82%B4%20%E3%82%B9%E3%83%88%E3%83%BC
%E3%83%B3%E3%82%A6%E3%82%A9%E3%83%83%E3%82%B7%E3%83%A5/00501334
3.html, https://www.levi.in/men/clothing/jeans/levis-mens-501-original-straight-jeans/
005013329.html, https://www.levi.com/US/en_US/premium/men/501-original-fit-mens-jeans-
big-tall/p/115010115#swatch)

Whereas when it comes to customization, Levi’s customizes a few collections for the country
depending upon the culture, lifestyle, popularity, demographics, endorsements and more. The
example for the same is visible in the Indian website, where a third time a collection is launched
in collaboration with Deepika Padukone (the renowned actress). And as seen in the website of
Japan, the collections White OAK and Sta-Prest precisely focus on the fashion, style and trend in
Japan. Eco-friendliness and fashion can and should go together, so SAMI MIRO VINTAGE
teamed up with LEVI'S® to create a moment of perfect circle through an upcycled fashion
collaboration. From concept to materials to production to short films, the collection inspires
deeper reflection on how the industry designs and produces fashion with a conscious approach.
The brand is based in Los Angeles and the collection of the same is visible of the USA website.
PRICE -

After the product comparison between the countries, the price should be compared. In order to
do that the standard product, which is available in all the countries is taken and the prices for the
same are set side by side. Levi’s Men’s SilverTab Straight jeans is taken as point of comparison
and it can be observed that the same jeans has different prices in all the country. The price
difference between Indian rupees and Dollar is less than the difference between Japenese Yen.
There is a variation of INR 2000 and approx 3000 in dollars and yen respectively.
 levi.jp levi.com levi.in

¥ 13,200 $79.50 ₹4,500

₹7381.53 ₹6517.61 ₹4,500

39.3k USD Dollar 69.3k USD Dollar 2.28k USD Dollar

(https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=JP)

PLACE -

PROMOTION - youtube, instagram, website

Difference in UI

Live session in levi’s japan

Levi’s india - Basic site

.

Levi’s strauss option 4

Presentation on theme: "Levi Strauss Japan K.K.: Selling Jeans in

Japan"— Presentation transcript:

2 Levi Strauss Japan K.K.: Selling Jeans in Japan

3 Our group members

梁晓红

邹鲁

刘雅倩

吕健蔚

TEXT

TEXT

TEXT
TEXT

廖圆圆

4 Park —— by 梁晓红

5 What are the key success factors

(KSFs)in the Japanese marketplace?

The key success factor(KSFs) in the Japanese marketplace is that Levi’s have successfully
implemented the localization strategy.

6 As Japan is such a country that the consumption of the world’s luxury goods is maintained in the
first place,Many brands in Japan have a strong tendency.So if one product wants to sell successfully
in Japan,it must be modified to meet the Japanese local needs and preferences. And they don’t
mind whether the price is expensive or not.

7 Hence Levi’s success is also due to the localization strategy

Hence Levi’s success is also due to the localization strategy. Levi’s is a great mix with the Japanese
environment.

Levi’s opened a corporation under a wholly owned subsidiary in Japan at the time when Levi’s
entrance was considered impossible.They make the products to meet the Japanese people’s body
size because the Asian people are more fitter than Americans.And all the products are produced by
Japanese people. Furthermore, Levi’s products in Japan were taking in high-end lines which attract
a lot of fashion people to buy.

8 Park —— by 廖圆圆

9 To what extent do the Levi Strauss' FSAs and CSAs match the KSF's
To what extent do the Levi Strauss' FSAs and CSAs match the KSF's. How has Levi's been able to
leverage its country-of-origin to become a leading brand? Can other American jeans do the same?

10 Levi’s is a history of 100 years old brand

Levi’s is a history of 100 years old brand.The brand can be crucial in the FSAs occupying the
position.The Japanese market and the United States market have essential difference.They are not
only fanatial pursuit of the West,but also have traditional oriental culture of the East.

11 Potential market segmentation

Diagram

As a developed country of the East,the Japanese market has two attractions for the United States in
the CSAs strategy.There are Market potential and Potential market segmentation.

two attractions

Market

potential

Potential market segmentation

12 Summary

Over all,the expansion strategy of Levi’s not only take into account of their own advantages,but also
make full use of japan’s cultural environment.Finally achieved the desired objectives of the CSFs

13 Levi’s is relying on the interaction between FSAs and CSAs to match the development of
CSFs.That is why Levi’s can become the leader of the jeans brand in japan.
14 Firstly, Market potential:Japan belong to developed countries,and the japanese per capita
income is relatively high than other Asian countries.Besides,the japanese fanatial pursuit of trendy
things and japan is the birthplace of the trend in Asia.So here has a great market potential.

15 Secondly, Potential market segmentation:the Potential market segmentation also attracts U.S.
exporters.Although,japan has a lot of local jeans brand.United under the banner of “trend” slogan
into japanese market,and inviting the japan’s superstar to do the spokesman for the jeans.There are
attract a lot of chasing the trend of young people and rapid occupation of the Japanese market.

16 Can other American jeans do the same?

17 The United States does not use such a strategy ,there are two brand aspects.

▲On one hand,the United States and Japan ideological and cultural differences ,led them to two
different marketing strategies.

▲ On the other hand,Levi’s in the U.S.belong to the category of daily necessities.However,in Japan
it is used to show off to others.

In brief,although the two countries FSAs the same,but their CSAs great difference between their lead
in the KSF’s strategy in a clear difference.

18 Park —— by 刘雅倩

19 There are mainly three key points .

How would you explain the apparent

success of LSJ's advertising campaign

stressingAmerican values in Japan?

The advertising of Levi’s in Japan publicizes American culture with a bold hand.

There are mainly three key points .

221 First, advertising spokesman's all have remarkable feature of American

First, advertising spokesmen all have remarkable American features of America. For example James
Dean, who is almost the key advertising spokesman image in Japanese’ s mind.

DEVON AOKI a famous model

This is the latest advertising in Japan,and we can learn about the spokeswoman who’s image still
keeps James Dean’s style .

Second,The music of background are nearly all English song

Second,the background music is nearly all English song.This way can quickly lead people into an
atmosphere of American culture.

Finally, All spokesman are the famous young stars of Japan.Why? because those young stars are
the representatives of creativity, energy ,bravery and success,which are just American values. And
Levi’s can be on behalf of American values that young countries become the strongest country in the
world by their own endeavor.

23 Summary

So LSJ’s advertising campaign stressing American values is successful because of the spokesman’s
image, the music of background and the choosing of the advertising spokesman.

Levi’s deveple from a small company producing jeans to a representative of American values in
other countries’ image. Levi’s is success .

Nowadays,Japanese think Levi’s is fashionable and young .It’s not only a jean but also a culture that
is a part of American culture.
Levi’s is a success .

Pros cons Long distribution channel Short

1. Cover a more extensive market.

2. Mitigate the stress of expenditure of the firm.

1. Lower the control of the distribution channel by the firm.

2. Increase diversity and uncertainty to the level of service.

3. Increase more workload to coordination between distributors

Short

1. Increase the control of the distribution channel by the firm.

2. Lower diversity and uncertainty to the level of service.

3. Lower the workload to coordination between distributors

1. The coverage of the market is narrow.

2. Increase the stress of expenditure of the firm.

28 Attributed to the specific situation of the Japanese market, using the long distribution channel to
sell the jeans is the best chance of succeeding.

29

30 Would you retain the premium positioning of Levi's in Japan

Would you retain the premium positioning of Levi's in Japan? Why/Why not?

We would like to retain the premium positioning of LEVI’S in Japan.

Firstly, as we all know, LEVI’S represents a kind of culture and fashion in Japan. Thus more and
more people are eager to pursue such a kind of fashion and culture that LEVI’S is able to occupy a
larger and larger part of the market.

31 In addition, declining the price of LEVI’S will make people think that the jeans seem to be on the
same level with jeans of other brands. To some extent, it may do harm to its sales volume instead of
increasing the profit. What’s more, people in Japan are able to afford the LEVI’S jeans.

32 Last but not least, what the company pursues is to maximize profits

Last but not least, what the company pursues is to maximize profits. If the company can still maintain
both high sales volume and high profits based on that price, why doesn’t it keep the price?

In conclusion, retaining the premium position of LEVI’S in Japan is beneficial for itself.

MARKETING STRATEGY IN USA

Levi's Product Strategy

When it comes to Levi's products, they are extremely comfortable and of great
quality. Through this, the company owns immense popularity in the market
and has a huge customer base with loyalty.
Levi's offers such incredible products and services that they don't look
elsewhere for purchasing. Its denim jeans are innovative, enough spacious for
keeping the necessary stuff and come with double layers for durability.
The most popular Levi's product is its blue denim jeans, however, over the
past few years, other products are also gaining prominence.
Besides its fame for denim jeans, Levi's provides a great range of products
including skirts, jeans, underwear, shirts, dresses, jumpsuits, belts,
accessories, and many others.
Its denim jeans are further categorized in many designs such as Taper, Skinny,
Boot cut, Slim, Flare, Relaxed, Moms, and Big and tall. The most unique part is,
it associates a three-digit number with its jeans.
Suppose, you find great jeans with a number 201 but in the men's section,
then you can find the exact same jeans in the women's section with the
number 200. Sounds incredible, right!
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Levi's Distribution Channel

Levi's is entirely distinguished into three major geographical areas: Levi's
Strauss Europe, Levi's Strauss America, and Levi's Strauss Asia Pacific. Its
Asia Pacific region includes the Middle East countries like Qatar, Oman,
Kuwait, and United Arab Emirates as well.
The official headquarters of Levi's is based in San Francisco, United States.
Levi's distribution strategy is remarkable. It manages the entire supply chain
smoothly as well as the delivery through distribution channels, franchise
models and advanced qualified staff.
Its products are delivered through numerous distribution channels. Alongside
its holds, several factors owned retail outlets and showrooms within Levi's
franchise.

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Levi's Pricing Strategy

Levi's is a very well-established brand that comes with a great policy of
conserving standardly fixed prices across the globe. Its pricing for the pair of
denim jeans is measured with tons of factors behind it.
These factors are the demand for products, cost of products, product's
uniqueness as well as convenient features, and product's affordability based
on the target audience.
Likewise in India, the price of denim jeans ranges from Rs 1299 (for Levi's
cost-sensitive customers) to Rs 7000 (customers with luxury).
Its pricing strategy is totally based on the preferences of its customers and
that's why it is quite prominent with its services.

Levi's Target Market

Levi's Net Sales Worldwide

Levi's has developed its strategies through a mix-up of geographic,
demographic, and segmentation strategies. This is basically for building
distinct types of offerings according to the market and customers' choices.
Levi's opts for mass targeting strategies in order to convince the requirements
and needs of its customers. Levi's Market position is quite upright and
competitive but at the same time, the brand prioritizes the value of money for
the customers. And that's why it influences its customers and gained such a
huge base.

Levi's Marketing Analysis

Levi's functions in a very rigorous and competitive marketplace. The market
holds a huge counterfeit category of products and services along with various
nationwide performers. All these combined are majorly affecting the
performance and development of the brand. However, various other
components such as climatic circumstances, Labour expense, and developing
lifestyles are some of the central factors that are influencing the marketplace
across the globe.
In 2021, Levis appointed Deepika Padukone as its global brand ambassador.
The brand is planning to target millennials. The popular actress was also seen
in its new campaign focused on the new range of jeans.
On its association Deepika Padukone said,
“Authenticity, Originality, and Honesty are values that the brand has been built on and are
values I identify with the most! For those unaware, I have always been a jeans and t-shirt
kind of girl. The right pair of jeans not only make me feel comfortable but also confident!
I am absolutely honored and delighted to be associating with one of the world’s most
iconic brands-Levi’s.”

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Conclusion
Besides being one of the most popular clothing brands across the world,
Levi's manages to keep up with its records. The brand follows some of the
very significant marketing strategies that have brought incredible results for
the company.
From products to marketing analysis, Levi's is known for its tremendous
strategies that have kept the brand on the top for 167 years. The marketing
strategies of Levi's are immensely famous as well as strong.

Marketing strategy in India

Levi Strauss & Co. was established in 1853, headquartered in San Francisco,
California. It is a public company founded by Levi Strauss. Levi’s products are sold
through online sites, chain retailers, and department stores. Along with designing jeans
for men, women, and children, the company also markets and designs casual wear
coupled with other accessories.

Levi’s is observed to prize upon the comfort, design, and durability that its products
offer. Ever since the brand’s launch, it has been growing tremendously at a quick pace
making a total revenue of 53% in 2020 mostly from America. Let’s know the reasons
behind the success of Levi’s through its 4Ps in Marketing Mix.

Marketing Mix of Levi’s

For brands to have effective marketing the brand must concentrate on a range of
different aspects instead of focussing on just one aspect. This is where Marketing Mix
comes into play which helps brands to concentrate on numerous areas, thereby, making
a more comprehensive marketing plan, classified under the 4Ps: product, placement,
price, and promotion.

Let us look at the marketing mix of Levis-

1. Product Strategy of Levi’s

The brand has gained a loyal customer base with Levi’s jeans over several years. This
is because Levi’s makes sure that customers get so used to the pattern, class, and
reliability it offers that they do not wish to switch to any other brand.

About 30 steps are involved in the manufacturing process of Levi’s jeans which tells you
the immense manufacturing skills that go into the making of the product. Unique design,
dual seam durability, five-pocket convenience makes Levi’s stand out among its
competitors.
Although color variants like khaki, black, gray, green have received recognition over the
years, Levi’s classic blue jeans are its most stand-out product in the Product Mix of
Levi’s. Its jeans come in several fits: taper, slim, boot cut, skinny, flare, relaxed, and big
and tall. Every pair of jeans has a uniquely identifiable 3 digit number series namely
from 500s, available for men and women to 300, 400 available for women. Levi’s also
has an assorted mix of shorts, jackets, trousers, jeans, skirts, socks, sweaters, belts,
jumpsuits, underwear, dresses, and accessories.

The company believes in product innovation and differentiation to tackle the competition
in the industry and to create a strong brand identity.

2. Price Strategy of Levi’s

The company has a policy of maintaining standard pricing all over the world. Their
pricing is mid-ranged which can be afforded by middle-class and upper-middle-class
sections.

Owning to a brand being an established player, price segmentation is a risky strategy.

Levi’s jeans price is influenced by numerous factors like affordability for target
customers, cost & demand of the product, and its famous features & uniqueness.

In India, Levi’s jeans price ranges from INR 1299 to 7000, covering both the price-
sensitive and luxurious style customers.
The company also follows price discrimination policy in various countries which means
they sell the same product for different prices in different countries.

3. Placement Strategy of Levi’s

Levi Strauss and Co.’s operation takes place in 3 main geographic divisions: Levi’s
Strauss Asia, Levi’s Strauss Europe, and Levi’s Strauss America. The main
headquarters of Levi’s is in San Francisco. Operations of Middle East Asian regions like
Oman, Kuwait, United Arab Emirates, and Qatar are also managed under Asia-specific
divisions.

An effective and efficient delivery and supply chain is maintained by the company via an
innovative franchise model, duly formed distribution chain, and competent staff. They
give customers different buying options from the various present distribution channels,
including franchisee-owned retail outlets and showrooms.

Presently, Levi’s has 15000+ franchise stores and around 3500 outlets all around the
world.

It is present in about 1500 stores across India which comprises 400 multi-brand outlets
and exclusive stores like Lifestyle and Shoppers Stop

4. Promotion Strategy of Levi’s

Levi’s uses all kinds of media for its promotional activities like TV, newspaper, and
magazine. The company is also present on different social media platforms to increase
its reach. They have launched different campaigns and have their own company song
as well.

While trying to market itself to youth, Levi’s always tends to take care of the aspects of
individuality and uniqueness, established by the “Be Yourself” campaign that received a
lot of appraisals. Levi’s organized public exhibitions in Europe to not only majorly
promote itself but also to trace its development from almost 150 years back.

As a part of the promotional efforts of the brand, Levi’s introduced an environment-

friendly “smart jacket” with waterless technology a few years ago. To promote Levi’s
jeans in Walmart, from 2002 to 2006, the brand introduced a signature range of jeans
for only those customers who prefer buying from Walmart. Levi’s launched a campaign
with Red Tab Foundation which provided financial help to retired employees.

In India, with the help of newspaper print ads, internet, billboards, television ads,
hoarding, and through brand ambassadors like Akshay Kumar and now Deepika
Padukone, Levi’s has found a huge audience to cater to.

Conclusion
Levi’s today is one of the world’s largest apparel companies and it is the market leader
in the jeans section specifically. Consumers spend a little extra for the brand because of
the good quality products, they get a perception of a premium brand at affordable
prices. Levi’s stores are also an attractive part as they are so well designed that they
attract customers and give them an aura of superiority. The company is doing well
overall, they just need to focus on brand innovation and should try to enter new market
segments with new products.