Marketing Levis
Marketing Levis
Marketing Levis
Primarily thanking ALLAH Almighty for giving us such a bright opportunity to learn and polish our
extravagant abilities.
TABLE OF CONTENTS
Acknowledgments
Executive Summary
Introduction
History
Marketing mix
• -Product
• -Price
• -Place
• -Promotion
SWOT analysis
Conclusions
Recommendations
EXECUTIVE SUMMARY:
INTRODUCTION:
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 is privately held by descendants of the family of Levi Strauss.
Shares of company stock are not publicly traded.
The company employs a staff of approximately 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 finish fabrics. With 2007 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.
BRANDS:
The products of Levi Strauss & Co are sold under three brands:
Levi's®:
Since their invention in 1873, Levi's® jeans have become one of the most successful and widely
recognized brands in the history of the apparel industry.
Dockers® :
Dockers® brand, which pioneered the movement toward business casual, has led the U.S.
khaki category since the brand's 1986 launch, and is now available in numerous countries.
DIVISIONS:
Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions:
Levi Strauss & Co.'s Asia Pacific Division is comprised of subsidiary businesses, licensees and distributors
throughout Asia Pacific, Middle East, Africa and Latin America. The Division sources, manufactures and markets
Levi's®, Dockers®, and Levi Strauss Signature™ products through 14 affiliates. The company employs
approximately 2,500 talented people working together to ensure that the apparel brands are leaders in this part of
the world. The division is comprised of both wholly owned-and-operated businesses, licensees and distributors
throughout Asia and the Pacific including Pakistan.
COUNTRIES:
Levi's® brand of products are sold in 49 countries, Dockers® brand in 31 countries and our Levi
Strauss Signature™ brand in 4 countries:
Asia Pacific:
Australia, Bangladesh, Brunei, China, Guam, Hong Kong, India, Indonesia, Japan, Korea, Malaysia,
New Zealand, Pakistan, the Philippines, Singapore, Sri Lanka, Taiwan and Thailand.
Middle East:
Bahrain, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates
Africa:
An gola,
Botswana,
Latin America:
Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala,
Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela
VALUES:
Levi Strauss & Co. has four major core values. These are
• -Empathy
• -Originality
• -Integrity
• -Courage
MISSION STATEMENT
The mission of Levis Strauss & Co. is to sustain responsible commercial; success as a global marketing company
of branded apparel.
We must balance goals of superior profitability and return on investment, leadership market positions, and
superior products and services. We will conduct our business ethically and demonstrate leader ship in satisfying
our responsibilities to our communities and to society. Our work environment will be safe and productive and
characterized by fair treatment, teamwork, open communications, personal accountability and opportunities for
growth and development.
ASPIRATION STATEMENT :
They want a company that make them proud of and committed to, where all employees have an opportunity to
contribute, learn, grow and advanced based on merit, not politics or background. They want their people to feel
respected, treated fairly, listened to and involved. Above all, they want satisfaction from accomplishments and
friendships, balanced personal and professional lives, and to have fun in our endeavors.
VISION STATEMENT:
When LS & Co. describe the future of Levi
they are talking about a building on the
foundation they have inherited: affirming best
of their Company’s tradition, closing
gaps that may exist between principles and
practices and updating some of their values
to reflect contemporary circumstances.
HISTORY
Today, the Levi’s® brand is an authentic American icon, known the world over. Levi Strauss started it 150 years
ago & forever earned a place in history. In 1847, Levi Strauss, his two sisters & mother sailed for America where
they joined half-brothers Jonas & Louis in New York. Levi joined their dry goods business. In 1853, Levi sailed to
San Francisco to join dry goods business and started selling clothing, bedding & linen to small stores in
California.
In 1902, Levi died and his two nephews inherited the business. In 1910’s, LS&CO. received “Blue Ribbon”
highest award for waist overalls in Panama. One-piece garment for women was introduced to work and play. In
1930’s, the Great Depression stroke & demand for Levi’s jeans, shirts and jackets declined.
.
In 1991, the first original Levi’s store was opened in United States. In 1994, Dockers brand was introduced in
Europe. It launched its first website in 1995.In 1996; it introduced its Slates ® brand, a new style for men
wearing. In 1999, classic 5 pocket pants were reinvented.
In 2000, LS&CO. introduced Levi’s ® engineered jeans TM, the reinvention of jeans for the new generation. It
named No. 2 for America’s best companies for minorities. In 2003, it celebrated its 150th anniversary of its
founding and 130th anniversary of invention of blue jeans.
Products, Positioning, and Market
Segmentation
Advertising professionals realize that the heart of any campaign is the product and the position it holds in people's
minds. Products and their brand names are newsmakers themselves. Understanding the complexities of a brand
identity and its position is no easy task.
One of the most controversial areas of product concepts is the brand extension. A new product gets to share the
name of an older, established brand. Early theorizing suggested that brand extensions would sap market clout
from the established product, but these fears proved groundless. Today brand extensions occur not only within the
company, but companies are licensing their brand names to all kinds of products in the hope of increasing brand
awareness.
Demographic Environment
Economic Environment
Natural Environment
Technological Environment
Political-Legal Environment
Social-Cultural Environment
Market Segmentation
Market segmentation is the selection of groups of people who will be most receptive to a product. The most
frequent methods of segmenting include demographic variables such as age, sex, race, income, occupation,
education, household status, and geographic location; psychographic variables such as life-style, activities,
interests, and opinions; product use patterns; and product benefits. Much segmentation involves combinations
of these methods. No matter how segments are defined, however, they are characterized by considerable
change over time. The readings in this section exemplify areas of rapid change.
Target Market:
501® JEANS targets its market by evaluating the wants of customers. Mostly
Levi’s targets its market among the following classes:
• Upper Class
• Upper Middle Class
Benefits of Segmentation:
Levis has got customer oriented approach by segmentation.
Company is promoting its products effectively within segments by print media as well as
electronic media, e.g. Newspapers, Signboards, Television commercials, Internet, etc.
Company is providing their customers with stylish better quality and different product keeping in
view its cost.
Limitation of Segmentation:
Because of segmentation, Levi’s faces some limitations.
Marketing Research:
According to Levi’s marketing logistic manager, their company conducts a research to know
• What’s in trend?
• What are the needs of customers?
Sources of Data:
Levi’s gathers data from both primary and secondary sources. Secondary data is already available in the company.
To gather primary data, they organize radio shows and music concerts by sponsoring.
MARKETING MIX:
The marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in the target
market. Marketing-mix decisions must be made for influencing the trade channels as well as the final consumers.
McCarthy classified these tools into four broad groups that he called the four Ps of marketing: product, price,
place and promotion.
Note that the four Ps represent the sellers view of the marketing tools available for influencing buyers.
Marketing
mix
Product Place
PRODUCT:
“Product means set of tangible and intangible attributes which may include packaging, color, price, quality and
brand plus the seller’s services and reputation. A product may be a place, service, good or promotion.”
BRANDS
Brand is a name, term, sign, symbol or design that adds value to the products. LS & CO. earns remarkable
revenues throughout the year coz its products are considered to be the world’s largest quality products.
LS & CO. is basically divided into 3 sub brands i.e. Levi’s, Dockers and Levis Strauss Signature. All the three
brands are providing different quality products.
LEVI’S®
Invented in 1873, Levi's® jeans are the original, authentic jeans. They are the most successful, widely recognized
and often imitated clothing products in the history of apparel. Levi's® jeans have captured the attention,
imagination and loyalty of generations of diverse individuals.
As the inventor of the category, the Levi’s brand continues to define jeans
wear with widest range of products available from quintessential classics,
such as the famous Levi's®501® Original jean to favorite fits and styles in
our Red Tab™ and Levi's® Premium collections.
DOCKERS®
Launched in 1986 in the United States, Dockers® brand products and
marketing played a major role in the creation of a new apparel category
for men's pants and the shift to casual clothing in the workplace.
Dockers® Khakisquickly became the No. 1 khaki pant brand in the United
States .
PRODUCT ATTRIBUTES
Products are usually considered to be the No.1 factor contributing towards building goodwill of a firm. A product
should be unique, durable, reliable, comfortable and economical. Following are some of the basic attributes of
LS&CO.’S products
Variety
Features
Design
Color
Size
VARIETY
Levi’s products today are perceived by many as a symbol of youth, freedom, confidence, individualism,
independence & comfort. LS & CO. provides a wide variety of products including :
JEANS
Levi’s jeans have been present at nearly every pivotal moment in history and culture for the past 150 years.
SHIRTS
COTTON PANTS
ACCESSORIES
BELTS
SUNGLASSES
WALLETS
LADY’S BAGS
JACKETS
SHOES
Business Casual shoes and Casual shoes are offered by Dockers both for men and for
women
FEATURES:
Features are competitive tools that differentiate the company’s products from its competitor’s products.
Following are some of the main and distinctive features of Levi’s products.
Comfort
Levi’s jeans and other products are comfortable enough to be worn even at the times of protest, war,
cultural revolution, relative peace and pure fun.
Durability
The two figures on the patch of Levi’s jeans with
whips in hand pulling in opposite directions, yet the jeans remain
intact; symbolize the strength and durability of the ‘Patent riveted
clothing’.
Style
Clothing means more than just fabric, thread and rivets. To clothe
oneself means to put on something that symbolizes who you are. Levi’s
jeans are available in different styles for men and women.
LEVI’S PORTFOLIO ANALYSIS
Levi’s corporate strategy involves a number of businesses, so managers can manage this collection or portfolio of
businesses by using a corporate portfolio matrix.
BCG Matrix
“A strategy tool that guides resource allocation decisions on the basis of market
share and growth rate of SBU’s.”
Boston Consulting Group introduced the idea of BCG matrix that an organization’s businesses could be evaluated
and plotted using a 2*2 matrix to identify which ones offered high potential and which ones were a drain on
organizational resources.
Horizontal Axis:
The horizontal axis represents market share which is evaluated as low or high.
Vertical Axis:
The vertical axis indicates anticipated market growth which is also evaluated as low or high.
CATEGORIES
Based on its evaluation, the LS & CO.’s businesses are placed in the following:.
STARS (High Growth, High Market Share)
“Stars include the businesses which are in a fast growing market and hold a dominant share of that market.”
Dockers® come under the head of stars as it is the major source of income for the
company.
Businesses in this category generate large amounts of cash, but their prospects for furure growth are limited.”
The women apparels has got a low growth and high market share so it comes under the Cash Cows head
“The 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.
Price Determination:
During the determination of the price company not considered the competitors, but the
standard that is used is considered
.
Our price is influenced by the following factors:-
Cost of the product
Affordable for the target market
Demand of the product
Competitors:
We are much proud to say with surety that our products completely satisfy our consumers, that’s why we
don’t face much competition in our business. But yet there are some competitors e.g.
Pepe Jeans
Leeds (US Apparels)
GAAP Jeans
Cambridge
• Such a stuff, design and fashion which don’t have the enough sales are recall back to the company.
Again company issues this stuff to their own outlets for sale at discount prices at 14 August.
PLACE:
Placement objectives:-.
• To equalize the demand and supply of products at all places.
• To provide desired products at proper place.
• To fulfill the requirements of every locality according to the taste of the people.
• To increase the brand equity by reaching every corner of the world.
Channels:-
Channels of Distribution:
Strategy:
Levi’s Strategy for Choosing channels is according to Product: Mostly Levis is limited to his wholesalers, because
the unit value is high and cost related issues occur.
Location:-
As mentioned earlier the Levi's® brand of products are sold in 49 countries, Dockers® brand in 31 countries and
our Levi Strauss Signature™ brand in 4 countries:
COUNTIRES:
These countries are
Australia, Bangladesh, Brunei, China, Guam, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New
Zealand, Pakistan, the Philippines, Singapore, Sri Lanka, Taiwan , Thailand.
Bahrain, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates Angola, Botswana,
Mozambique, Namibia , South Africa. Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El
Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela.
PAKISTAN:
In Pakistan it operates in the following cities:-
1. LAHORE OUTLETS :
2. FAISALABAD OUTLETS:
3. ISLAMABAD OUTLETS:-
4. KARACHI OUTLETS:-
5. MULTAN OUTLETS:-
6. PESHAWAR OUTLETS:-
7. RAWALPINDI OUTLETS:-
8. SIALKOT OUTLETS:-
STRATEGIES:
LS & CO. Keep in mind the price and quality of the products and try to make its products better.
Placing according to Technology:LS & CO. has tried to build its image as an innovator by
coming in Pakistan with their Jeans having new and latest style and look
PROMOTION:
Promotion objectives:
o To inform, persuade and remind the potential customers about its products
o Increase awareness and build primary demand
o To build strong brand equity.
o Build Company’s image as innovator.
o To create bonds between public and Levi Strauss by helping the people.
o To create the importance of its products
Sales
promotion:-
For the promotion of sales Levi Strauss & Co.
adopt a very effective but comprehensive
strategy. Levis pays attention to the
publicity of its products. The major source of
promotion of levi’s is done by creating public
relations. The sales promotion of LEVIS
targets the end consumers. Since the Levi’s
JEANS are in growth stage in Pakistan,
therefore, the promotional strategy is based on
persuading of prospective buyers.
Personal selling
Personal selling by the representative of the organization takes place face to face with final consumers.
Mass Selling
Levis does mass selling to inform a bulk of persons by advertising.
Advertising:-
The type of advertising used by LEVIS.
Competitive advertising
The advertisement given by the LEVIS stresses on the demand of the product and enhancement of its features.
Institutional advertising
Levis uses institutional advertising to promote company’s image by saying
Many Copy the Red Tab No One can copy the Origina
Advertising mediums:-
The advertising media used by the company are
Television
Fashion Magazines , Newspapers
Internet.
Bill boards ,banners etc
Internet.:-
Levis provides up-to-date information to their customers through electronic media i.e. from their websit
Levi’s is using selective but intensive distribution level for the distribution of its products . For example in
Pakistan Levis has opened its outlets, sales offices and sales branches in major cities like Lahore, Islamabad and
Karachi.
Sales offices for Levis act as a display center for their Products from where the customers can get information
about latest designs and up to date fashion introduced. While the actual sale of the products take place at the sales
outlet of the company.
Public relations:-
The sales promotion of LEVIS also includes such activities as event sponsorship.
Levi Strauss & Co. says ,
“ Our corporate values enable our vision of the future and reflect the legacy of our founder, Levi
Strauss, who devoted substantial time and resources to charitable and philanthropic activities. ”
GUIDING PRINCIPLES:
There are three guiding principles present behind the global giving programs :-
-The first is a belief in empowerment - the right of women and youth to identify their needs and to participate in
solving problems that affect them.
-The second is a resolve to address social biases and their impact on youth and women whether due to racism,
xenophobia, sexism, homophobia or HIV/AIDS status.
-The third is a commitment to work collaboratively with other funders and to encourage joint efforts by our
grantees.
ISSUES:
These principles are applied to two interrelated issues:
In 1985 the Levi Strauss Foundation became the first U.S. corporate foundation to address this epidemic, and has
since contributed more than $26 million to organizations in more than 40 countries. The Foundation and
company-supported programs seek to prevent the spread of HIV/AIDS
To alleviate poverty, individuals must have access to resources and possess the skills to acquire and manage
financial assets -- yet youth and women continue to struggle against social norms and financial institutions that
limit this type of access and discourage education and training. Focusing specifically on indigent women and
youth (age 10 to 25).
For Example
1. Philanthropy includes a focus on strengthening workers' rights and ultimately improving working and
living conditions in communities where third-party contractors make LS&CO. products. The Levi Strauss
Foundation provides innovative "sourcing" grants to local, regional or global nonprofit organizations
2. LS & Co. ‘s commitment to equal employment opportunity and diversity pre-dates today's programs
and began in the 1940s when factories were desegregated in California.
3. For the past four years, LS &Co has been ranked as one of "America's 50 Best Companies for
Minorities" .
4. In 1991, LS &Co became the first worldwide company to establish a comprehensive ethical code of
conduct for manufacturing and finishing contractors working with the company
5. In 2003, LS &Co received the Corporate Philanthropy Award for our leadership in giving and
volunteering in san Francisco area.
6. In 2000, LS &Co inaugurated Volunteer Day at San Francisco headquarters and have since expanded
it beyond the United States and Canada to include sites throughout Latin America and Asia. In 2004,
employees volunteered more than 50,000 hours to charitable organizations around the world and
provided $1 million in philanthropic support to local nonprofit groups
7. In 1998, LS &Co received the U.S. President's Ron Brown Award for Corporate Leadership for
outstanding achievements in employee and community relations. LS &Co was recognized for creating
Project Change, an initiative of the Levi Strauss Foundation that combats institutional racism.
8.In 1968, LS &Co pioneered an employee volunteer effort called "Community Involvement Teams" or
CITs. There are now 78 CITs worldwide.
9.LS &Co has played a leadership role in educational programs and policies regarding AIDS in the
workplace
10.LS &Co have made more than $27 million in grants for AIDS care and prevention. in the last two
decades and have received numerous awards and recognition for our efforts to combat the HIV epidemic.
Funding:-
The philanthropic funding is divided into two categories:
1) Core Grants
The core grant includes the following:
2) Non-Core Grants
Animals
Arts & Culture
Civic
Disaster Relief
Environment
Food, Shelter & Emergencies
Health & Human Services
Holiday Grants
Recreation & Athletics
Youth Empowerment
LS&Co encourages employees around the world to join one of the 72 Community Involvement Teams (CITs).
Founded in 1968, CITs are company-sponsored and employee-led groups that partner with local charitable
organizations to identify needs, plan activities, and create volunteer and donation opportunities for LS&CO.
employees and retirees. They also help to raise awareness among employees about important issues in their
communities.
In 2000, LS&CO. inaugurated Volunteer Day at the San Francisco headquarters and has since expanded it to
more than 40 locations in the U.S., Canada, Latin America, Asia and Europe. On Volunteer Day, LS&CO.
employees engage in a variety of community activities ranging from painting murals at schools to planting
gardens at community centers.
In 1991, we became the first multinational company to establish a comprehensive ethical code of conduct for
manufacturing and finishing contractors working with the company. This code, known as the Global sourcing
and Operating Guidelines, directs business practices, such as fair employment, worker health and safety, and
environmental standards, among others.
We also work with nongovernmental organizations (NGOs) for input and recommendations to improve our
worldwide internal monitoring process. For example, we participate in the Ethical Trading Initiative (ETI)
Red Tab Foundation: We Share A Common Thread
The Red Tab Foundation (RTF) is a unique nonprofit organization that assists Levi Strauss & Co. (LS&CO.)
employees and retirees who are unable to pay for life's basic necessities due to unexpected emergencies. RTF
provides financial assistance, education and preventative programs to help individuals in their own efforts to
maintain their financial, physical and emotional health. Founded in 1981 by Jerry O'Shea, a former LS&CO.
sales manager and marketing executive.
"strengthen the lives of its core clients and their families through economic assistance and
empowerment."
STRATEGIES:
The Foundation's efforts to accomplish this goal are guided by two key strategies:
The foundation received national attention for programs in both of these areas when it was featured in a 2004
National Public Radio broadcast regarding innovative services for hourly wage earners.
Current examples of RTF's workshops and asset-building programs include the "Money School" and a
Philippines’ Micro-enterprise Loan Progra
Happenings:-
Now- a-days for promotion following offers are present for the customers.
1) For every purchase of Rs. 3000/ on the new brand –5 the customers get a coupon. And customers can win
a new LG air conditioner.
2) 501® Scarred
What's your story? The best story wins an iPod.
3) Levi's® Lady Style
Get a Swarovski designer tattoo with every purchase of "Levi's® Lady Style"
4) Father's Day
Purchase Dockers Product worth Rs.2000 and above to get a branded Dockers
Cap
A lot of variety is offered by Levi’s ranging from sunglasses to skirts and shirts.
The products are renowned and are considered as the most durable i.e. the long lasting products.
As no discounts are present and products are sold at fixed prices many customers are lost.
Levi’s does not provide any services like free delivery etc.
Opportunities:
Levi’s can do more well in the women section. This section is give less importance as compared to the men
section.
The kid’s 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
The threats that Levi’s faces are the competitors. Although it does not have any competitor in Pakistan but
it does have some competitors at the global level.
CONCLUSIONS AND
RECOMMENDATIONS:
CONCLUSION:
Along with the collection of above data , we also did a personal survey from the customers of Levi’s. A questionnaire was
generated which was then distributed among the customers. The questionnaire appeared like this:
Survey :
Name(optional):
Q#1 : State the extent to which you agree with the following statement: “Levi’s products provides a lot of satisfaction?”
Strongly Disagree
Disagree
Neither agree nor disagree
Agree
Strongly agree
Q#2 : Do you give preference to Levi products over other company’s similar products?
Very unlikely
Unlikely
Neither likely nor unlikely
Likely
Very likely
Q#3 : What is the competitive advantage that Levi’s has over others?
Comfortability
Brand name
Durability
Variety
Style
Innovativeness
Any other ? please specify:
Comfortability
Durability
Variety
Style
Innovativeness
Price Affordability
Any other ? please specify:
Men section
Women section
Kids section
Q#6: Please, give us your suggestions and recommendations for Levi Strauss and Co. with out any hesitance:
By the help of above data we can conclude that Levi Strauss & Co. is no doubt a benchmark for the jeans makers all around
the world.
5% 3%
completely
satisfied
15% somewhat
satisfied
neither
satisfied nor
dissatisfied
somewhat
60% dissatisfied
17%
completely
dissatisfied
RECOMMENDATIONS:
From the survey results and the data we collected from various peoples, sites we recommend levi’s to work on
following areas
First of all the Levi’s products are considered as the most durable product. Therefore that area is secured.
But the areas which levi’s lacks are comfort ability and inexpensiveness.
If levi’s lower down its prices to some extent the sales volume could be increased to a very large extent. As
we saw in the survey that people who are somewhat dissatisfied or who are completely dissatisfied gave the
reason of high prices.
The brand name of Levis is well recognized. We saw in the survey results that most people just to maintain
their high status buy Levi’s products.
Levi’s pays its maximum attention to the men’s wear. Although the women section and kid’s sections are
present but they are not full filling the requirements much.
The kid’s section, which is just in start, should be given attention to attract more customers.
A lot of importance should be given as far as the advertisement is concerned. They should stress on
promoting their products especially through TV media
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