Presented By

Ammara Saleem Malik Zain Nawaz Ayesha Ansari Usman Masood Ahmad Raza Samra Zahid (1214) (1185) (1235) (1234) (1222) (1208)

± Behavioral and Psychological nature of Brand Equity. ± Provides a look on current Brand Equity status ± Provides an insight into marketing and advertising efforts and future requirements

‡ Choosing Levi's as a brand for audit was very successful and inspirational . a brand has to be strong and famous enough so that when a person talks about it people shall already be aware of it and that is just to make a conversation or presentation a little more interesting.

A brief history
‡ The company was founded by levi strauss in 1853 primarily selling wholesale dry goods. The company was founded in san fransisco california. ‡ A tailor named jacob davis ( working with levi strauss) thought of an idea to use of copper rivets to reinforce the points of strain on pants. ‡ Davis and strauss purchased the patent of the idea of using copper rivets in clothing in 1873.

Background - Company Growth
‡ The innovation of rivets in the jeans differentiated levis jeans from others because of its durability. ‡ 1935 : company started selling female blue jeans. ‡ 1986: company introduced dockers as a new casual line of clothing. ‡ 1977: levis was worlds largest jeans selling brand.


mantra of levis is stylization and causality. Brand MANTRA is also a result of brand attitude, and this is what provides the key to its understanding. LEVIS has this strong attitude and that makes it unique from the others, because of being a global brand

Levi s Today
Sales in more than 100 countries Staff of 12,000 people worldwide Product Line of Levi s Brand Levis 501 Original and authentic jeans Most widely recognized 501 Jeans Dockers Number 1 Khaki Pant brand in the brand Levi s Strauss Denizen Mass Channel Value-Conscious Consumer Levis red tag

LEVIS has this world wide awareness amongst all age groups of men and women. They run many programmes as advertisement campaigns to make their brand popular amongst every group of people such as: Upper class Middle class Lower class They take this awareness further by putting up social awareness issues such as HIV/AIDS . HOW TO CHECK IF U WANT TO KNOW HOW WELL AWARE ARE PEOPLE ABOUT IT ? Your Product is the first that comes to mind in a certain product category e.g. Ice Tea = Snapple Jeans = Levi s

Brand Preference / Loyalty

People that are brand conscious and self aware and also conscious about the latest fashion are the most loyal customers of levis. Many people just buy levis jeans to make a cool fashion statement. And they stick to their choice because it is well recognized. That is the degree to which customers are committed to further purchases. e.g. I will always buy Levi s ( perfectly loyal customers saying) People prefer wearing levis over other brands because of its long life and stylish cuts.

Competitor Analysis
Levi Strauss & Co. was threatened by competition, because barriers of entry were relatively low in the jean market. (excluding the patent ) Some of Levi's competitors include: ‡ Calvin Klein ‡ Gap Jeans ‡ VF Corp (Lee, Wrangler) ‡ Tommy Hilfiger The entrance of new competitors had many effects on Levi's no longer has monopoly power ‡ more competitive prices ‡ lower profits ‡ Availability of substitutes ‡ firm faces increase in elasticity of demand Levi s customers buy from competition lowering Levi s market dominance because they are able to capture segments. VF Corp captures low--end jean consumers; Calvin Klein captures high--end consumers.




Levis Brand Equity

Rand Recognition / Equity it occurs when the consumer has a high level of awareness and familiarity loyalty, quality, emotion with the brand & unique brand association . Customers that usually buy levis are brand conscious and always well aware of the latest fashion and they do not want to compromise with the quality and their fashion statement.

Market Segmentation
Market Segmentation is the selection of groups of people who will be most receptive to a product BASIS OF MARKET SEGMENTATION

Demographic Segmentation Geographic Segmentation Psychographic Segmentation Behavioral Segmentation

Target Market

Mostly Levi s targets its market among the following classes: Upper class Upper Middle Class Middle middle Lower middle

Target Market Strategy
Target Market strategy adopted by Levis is basically on having long-term relations with their customers and to provide them with better product. They usually target youth and men/ women in early 40s.

‡ Brand Assets symbols: two Horse Brand, Red Tab, arched stitching on the pocket ‡ Brand personality characteristics: genuine, original, authentic, real. ‡ Brand Reflection: wearing Levi s jeans = being cool

Future Strategies
‡ Association with events . ‡ Fashion Shows ‡ Mr./Ms/Mr.s beauty contest ‡ University/Colleges Events ‡ Reality Shows ‡ Films NOTE: Never compromise with quality

Product Attributes
‡ ‡ ‡ ‡ ‡ Variety Features Design Color Size

SWOT Analysis
STRENGTHS History Brand name Finance and access to international capital Management Expertise in the jeans industry (R&D) Distribution channels & global sourcing WEAKNESSES High costs of brand protection Lack of control over quality (licensing) Lack of control over distribution decisions (retailers pressure to stop selling on the web)

SWOT Analysis (cont.)
OPPORTUNITIES: Arising of new market segments Technological development lower production and coordination activities Low manufacturing and production costs in international markets Development in other industries such as electronic (MP3 PLAYER) could pose new opportunities for complementing new LEVI S products Total market for casual wear is growing

THREATS Saturation of the jeans market Competition from products of the higher end of the market Economic downturns in some countries Fast changes in the consumer tastes Local regulations on the advertisements in countries like India, china Lack of protection of property rights Increase in the local competition

Levi Strauss & Co. The Levi s Brand and the Levi Strauss Foundation are all dedicated to continue in the fight against HIV/ AIDS.

1. Employee HIV/AIDS Program 2. HIV/AIDS related volunteer activities 3. Consumer and Media Attention 4. Innovative Grant Making

It can be simply defined as: ³The currency value charged to a Client by the company for a product or service´. Is one of the most important elements of the marketing mix, as it is the only mix, which generates a turnover for the organization. The remaining 3p's are the variable cost for the organization. It costs to produce and design a product, it costs to distribute a product and costs to promote it. .

List Price: Our all products are sold at listed price, which are settled by the Levis Company (Singapore). There is no discount to offer. Credit Sales: We also deal with credit sales, but we don¶t overcharges to the customers, we pay it our self to the bank (3 %). Products are only sold for cash or on credit cards Discount: We don¶t give the discount to our customers, even to the employees of the Levis. Our prices are fixed. Payment Period & Credit Terms: Payment Period & Credit Terms are settled by the company.

Levi Strauss & Co. Says, our corporate values are the foundation of our company and define who we are. They underlie how we compete in the marketplace and how we behave, Our values are fundamental to our success.

Levi Strauss & Co. has four major core values.
1. Empathy: Begins with listening. .. Paying close attention to the world around us 2. Originality: Being Authentic And Innovative 3. Integrity: Doing the Right Thing 4. Courage: Standing up for What we believe.

Reaching Customers
Levis is doing its best to reach customers all around the globe« they set up their own advertisement campaigns and run their fashion shows to make customers know of their latest trend. They sponsor many celebrities , events and organizations( such as many NGOs).

Levi Strauss & Company had most of its early success because the firm was behaving monopolistically. The company patented the riveted jeans, increasing durability, and gaining popularity. Over the years, the company maintained profits by providing a wide range of products, capturing new markets, and increasing its market shares. The company created barriers to entry by patents and trademarks, and by differentiating its product from generic jeans. However as more firms entered the market, the company started losing customers and incurring losses. The upstart companies captured niche market shares from Levi Levi s s immense market domination. Despite these reduction of sales, Levi Strauss & Co. maintained its corporate responsible image and progressive stance on social, labor, and environmental issues, which may have long longrun profit opportunities.



Mr. Osama Butt Senior Marketing Officer 2nd Floor Prime Heights Gulberg Lahore Pakistan

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