levi's (eom) submitted by kanika and urvashi

7/31/2019 Levi's (Eom) Submitted by Kanika and Urvashi

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LEVIS(BRANDRESEARCH)

SUBMITTED BY:

RISHI RAJ

REGISTRATION NO-

511137357

ROLL NO-MBASMU0043

SEM-4th

SUB-MARKETING

JULY 2012


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ACKNOWLEDGEMENT

I am Rishi Raj student of ZAKIR HUSAIN INSTITUTE

MBA 4 SEM my subject is marketing .I am very

thankful to my teacher to given me such good and

Knowledgeable project .By doing this project I canUnderstand many things about company and there

marketing system .My project company name is

LEVIS and it is one of the world famous brand.I complete

My project with help of my inter net ,friends ,book and also

with the help of my teachers.

2012JULY


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BONAFIDE CERTIFICATE

Certified that this project LEVIS BRAND studyis the bonafide work of ..RISHI RAJ..who carriedout the project work under my supervision .

SIGNATUREHEAD OF THE DEPARTMENT

SIGNATUREFACULTY IN CHARGE

ZAKIR HUSAIN INSTITUTE BAILY ROAD PATNA

DEPARTMENT NAME- MARKETING

JULY 2012


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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 inthe 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 ofapproximately 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 the

position the company for future


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Levi Strauss & Co. is a worldwide

corporation organized into three geographic

divisions:

Levi Strauss, North America (LSNA)Based in the San Francisco headquarters

Levi Strauss Europe (LSE)

Based in Brussels

Asia Pacific Division (APD)

Based in Singapore

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 2,500talented 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 Levi Strauss Signature brand in 4

countries:


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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: Mozambique, Namibia and SouthAfrica.

Latin America:

Argentina, Belize, Bolivia, Brazil, Chile,

Colombia, Costa Rica, Ecuador, El Salvador,

Guatemala,Honduras, Nicaragua, Panama, Paraguay,

Peru, Uruguay and Venezuela


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VALUES:

Levi Strauss & Co. has four major core

values. These are

Empathy

Originality

Integrity

Courage

Levi Strauss & Co. says,

Our corporate values -- empathy,originality, integrity and courage -- are the

foundation of our company define who we

are. They underlie how we compete in the

marketplace and how we behave.


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MISSION STATEMENT

The mission of Levis Strauss & Co.

is to sustain responsiblecommercial; success as a global

marketing company

of branded apparel.

We must balance goals of superior

profitability and return on

investment, leadership marketpositions, 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 forgrowth and development


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ASPIRATION STATEMENT :

They want a company that make them

proud of and committed to, where all

employees have an opportunity tocontribute, 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.


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VISION STATEMENT:When LS & Co. describe the future of Levi

they are talking about a building on the

foundation they have inherited: affirmingbest

Of their Companys tradition, closing

gaps that may exist between principles and

practices and updating some of their values

to reflect contemporary circumstances.

HISTORYToday, the Levis 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.


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In 1902, Levi died and his two nephews

inherited the business. In 1910s, LS&CO.

received Blue Ribbon highest award for waistoveralls in Panama. One-piece garment for

women was introduced to work and play. In

1930s, the Great Depression stroke & demand

for Levis jeans, shirts and jackets declined.

.In 1991, the first original Levis store wasopened 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 werereinvented.

In 2000, LS&CO. introduced Levis

engineered jeans TM, the reinvention of jeans

for the new generation. It named No. 2 for

Americas best companies for minorities. In

2003, it celebrated its 150th anniversary of its

founding and 130th anniversary of invention of

blue jeans.


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Within the rapidly changing global picture, themarketers of Levis are monitoring the followingsix major

Environmental Forces:Demographic EnvironmentEconomic EnvironmentNatural EnvironmentTechnological EnvironmentPolitical-Legal Environment

Social-Cultural Environment

MARKET SEGMENTATIONMarket segmentation is the selection ofgroups of people who will be most receptiveto a product. The most frequent methods ofsegmenting include demographic variablessuch as age, sex, race, income,occupation,education, household status, andgeographic location; psychographic variablessuch as life-style, activities,interests, andopinions; product use patterns; and product

benefits. Much segmentation involves

combinationsof these methods. No matter how segmentsare defined, however, they are characterized

by considerablechange over time. Thereadings in this section exemplify areas ofrapid change.


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DemographicSegmentation

geographic SegmentationPsychographic SegmentationBehavioural Segmentation

TARGET MARKET:

501 JEANS targets its market by evaluating the wants of

customers. Mostly Levis targets its market among the

following classes: Upper Class

Upper Middle Class Ta r

get Market Strategy:

Target market strategy adopted by Levis is basically on

having long-term

relations with their customers and to provide them withbetter product.

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.

Conditions for effective segmentation:

501 JEANS is fulfilling the conditions for effective

segmentation

BASIS OF MARKET SEGMENTATION


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Segments are strong enough to make profit.

Segments of company are measurable.

Limitation of Segmentation:

Because of segmentation, Levis faces somelimitations.

Lack of awareness in middle class.

Company has to pay extra cost for multi-

advertisement.

In Pakistan they have to face several Cultural

Barriers.

Marketing Research:

According to Levis marketing logistic manager,

their company conducts a research to know

Whats in trend?

What are the needs of customers?

Sources of Data:

Levis gathers data from both primary and

secondary sources. Secondary data is already

available in the company.

To gather primary data, they organize radio showsand music concerts by sponsoring


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PRODUCTS:

Product means set of tangible and intangible attributes

which may include packaging, color, price, quality and

brand plus the sellers 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 worlds largest quality products.

Targetmarket

LS & CO. is basically divided into 3 sub brands i.e.

Levis, Dockers and Levis Strauss Signature. All the

three brands are providing different quality products.

LEVIS:

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 Levis brand

continues to define jeans wear with widest range of

products available from quintessential classics, such as

the famous Levi's501 Original jean to favorite fits

and styles in our Red Tab and Levi's Premium

collections.


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DOCKERS:

Launched in 1986 in the United

States, Dockers brand products

and marketing played a major

role in the creation of a newapparel 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 .In 1988, the brand launched

Dockers for Women, a

feminine interpretation of

Dockers brand apparel. The

line offers fashionable tops,

dress and casual pants and a full

range of accessoriesdesigned

to fit a variety of different body

types and sizes. Today, the

Dockers brand has expanded to

more than 50 countries in every

region of the world with a

complete assortment of stylishand innovative products

including a full line of tops,

footwear, outerwear and

accessoriesfor a broad range

of consumers


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LEVIS STRAUSS SIGNATURE:

The Levi Strauss Signature brand was

launched in 2003 exclusively for consumers

who shop in the mass

channel. The brand gives value-consciousconsumers access to high-quality, affordable

and fashionable jeans

wear from a company and name they trust.

The Levi Strauss Signature brand includes a

collection of denim and non-denim pants,

shirts, skirts and jacketsfor men, women and children all designed with

the high quality.

PRODUCT ATTRIBUTES:

Products are usually considered to be the No.1factor 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

Colour

Size


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Levis brand has mainly three

broad categories :MENS WEARWOMENS WEARACCESSORIES

Collections of Levis:RED TAB Casual and normalWORKERS Semi formal and casuallookSYKES Sporty look501 Cowboy lookRED LOOP Casual, costly imported

denim fabricThe Range of LEVISIncorporates components like:

Style Design

Price

Colors

Fabric


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VARIETY:Levis products today areperceived by many as asymbol of youth, freedom,confidence, individualism,independence & comfort. LS& CO. provides a wide varietyof products including :

JEANSLevis jeans have been presentat nearly every pivotalmoment in history and culturefor the past 150 years.SHIRTS

COTTON PANTS

ACCESSORIES :BELTSSUNGLASSESWALLETS

LADYS BAGSJACKETSSHOES


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FEATURES:Features are competitive tools thatdifferentiate the companys products fromits competitors products.Following are some of the main anddistinctive features of Levis products.COMFORT:Levisjeans and other products arecomfortable enough to be worn even at thetimes of protest, war,

cultural revolution, relative peace and purefun.DURABILITY:The two figures on the patch of Levis jeanswithwhips in hand pulling in opposite

directions, yet the jeans remainintact; symbolize the strength and durabilityof the Patent rivetedclothing.STYLE:Clothing means more than just fabric,

thread and rivets. To clotheoneself means to put on something thatsymbolizes who you are. Levis

jeans are available in different styles for menand women.


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LEVIS PORTFOLIO ANALYSIS:Levis corporate strategy involves anumber of businesses, so managers can

manage this collection or portfolio ofbusinesses by using a corporate portfoliomatrix.BCG MATRIX:A strategy tool that guides resourceallocation decisions on the basis of market

share and growth rate of SBUs.Boston Consulting Group introduced theidea of BCG matrix that an organizations

businesses could be evaluated and plottedusing a 2*2 matrix to identify which onesoffered high potential and which oneswere a drain on organizational resources.HORIZONTAL AXIS:The horizontal axis represents marketshare which is evaluated as low or high.VERTICAL AXIS:The vertical axis indicates anticipatedmarket growth which is also evaluated as

low or high.


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PRICEIt can be simply defined as:The currency value charged to a Client by thecompany for a product or service.

Is one of the most important elements of themarketing mix, as it is the only mix, whichgenerates a turnover for the organization. Theremaining 3p's are the variable cost for theorganization. It costs to produce and design aproduct, it costs to distribute a product and coststo promote it.List Price:Our all products are sold at listed price, whichare settled by theLevisCompany (Singapore). There is no discount tooffer.

Credit Sales:We also deal with credit sales, but we dontovercharges to the customers, we pay it our selfto the bank (3%).Products are only sold for cash or on credit cards

Discount:We dont give the discount to our customers,even to the employees of the Levis. Our pricesare fixed.Payment Period & Credit Terms aresettled by the company.

Price Determination:


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During the determination of the pricecompany not considered the competitors,

but thestandard that is used is considered.Our price is influenced by the followingfactors:-

Cost of the productAffordable for the target marketDemand of the product

Uniqueness and innovative features of the

productsCompetitors:We are much proud to say with surety thatour products completely satisfy ourconsumers, thats why we dont face muchcompetition in our business. But yet there

are some competitors e.g.Pepe JeansLeeds (US Apparels)GAAP JeansCamb ridgeOur prices are not influenced by the

competitors. Such a stuff, design and fashion whichdont have the enough sales are recall backto the company.Again company issues this stuff to theirown outlets for sale at discount prices at 14August.


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PLACEPlacement

objectives:-. To equalizethe demandand supply ofproducts at allplaces.

To providedesiredproducts atproper place. To fulfill therequirements

of everylocalityaccording tothe taste of thepeople. To increase

the brandequity byreaching everycorner of theworld

Channels:-

Channels of Distribution:LEVIS distributes JEANS bythe Channel Members that isthrough retailerand wholesalers. Retailers:HKB: Defence, Liberty Market ,

Mall MarketRaja Sahib, Link Road Pace,GulbergSheikh Innayat Ullah, Anarkal


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Strate gy:Levis Strategy for Choosing channels isaccording to Product: Mostly Levis is limited

to his wholesalers, becausethe unit value is high and cost related issuesoccur.Location:-Location:-As mentioned earlier the Levi's brand of

products are sold in 49 countries, Dockersbrand in 31 countries andour Levi Strauss Signature brand in 4countries:COUNTIRES:COUNTIRES:These countries are

Australia, Bangladesh, Brunei, China, Guam,Hong Kong, India, Indonesia, Japan, Korea,Malaysia, NewZealand, Pakistan, the Philippines, Singapore,Sri Lanka, Taiwan , Thailand.Bahrain, Israel, Jordan, Kuwait, Oman, Qatar,

Saudi Arabia, United Arab Emirates Angola,Botswana, Mozambique, Namibia , SouthAfrica. Argentina, Belize, Bolivia, Brazil, Chile,Colombia, Costa Rica, Ecuador, El Salvador,Guatemala, Honduras, Nicaragua, Panama,Paraguay, Peru, Uruguay and Venezuela.


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STRATEGIES:LS & CO. placed its products according to following

strategies.Placing according to Class and Attributes:

LS & CO. Positioned its products according to

different classes and

genders.Placing according to Competitors:

LS & CO. Keep in mind the price and quality of the

products and try to make its products better.

Placing according to Price and Quality:

LS & CO. introduces best quality at different prices to

its clients.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:To inform, persuade and remind thepotential customers about itsproductsIncrease awareness and build

primary demandTo build strong brand equity.Build Companys image asinnovator.To create bonds between public andLevi Strauss by helping the people.To create the importance of itsproducts


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For the promotion of sales Levi Strauss & Co.adopt a very effective but comprehensivestrategy. Levis pays attention to the publicityof its products. The major source of

promotion of levis is done by creating publicrelations. The sales promotion of LEVIStargets the end consumers. Since the Levis

JEANS are in growth stage in Pakistan,therefore, the promotional strategy is basedon persuading of prospective buyers

Levis uses the following promotional strategies topromote its product.

Personal selling selling by the representative of theorganization takes place face to face with finalconsumers.

Mass Selling

Levis does mass selling to inform a bulk of personsby advertising.Advertising:-The type of advertising used by LEVIS.

Competitive advertisingThe advertisement given by the LEVIS stresses on

the demand of the product and enhancement of itsfeatures.Institutional advertising

Levis uses institutional advertising to promotecompanys image by sayingMany Copy the Red Tab No One can copy theOrigina


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Advertising mediums:-The advertising media used by the company areTelevision

Fashion Magazines , NewspapersInternet.Bill boards ,banners etc

Television & Radio:Advertisements of Levi Strauss & Co. are veryinnovative and eye-catching. Buyers are attractedtowards theproduct. The advertisements are placed at theinternational levelFashion Magazines & Newspapers:For fashion magazines and newspapers LS&Co. isa target due to its grand brand equity ,it has

become a benchmark for all the others to follow.The newspaper gives a coverage to the socialevents in which LS &Co takes part with greatinterest. Whereas fashion magazines are alwaysdealing with the gorgeous models working withLS& Co and the unique outfits of the models

Internet.:-Levis provides up-to-date information to theircustomers through electronic media i.e. from theirwebsitBillboards & banners:-Billboards and banners are also used for the

advertisement purpose.


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SALES:Levis holds a very big sales department asit is working in many countries.Level of Distribution Intensity:

Levis is using selective but intensivedistribution level for the distribution of itsproducts . For example in Pakistan Levishas opened its outlets, sales offices andsales branches in major cities like Lahore,Islamabad and Karachi.

Sales Offices and Sales Branches:Sales offices for Levis act as a display centerfor their Products from where thecustomers can get information about latestdesigns and up to date fashion introduced.While the actual sale of the products takeplace at the sales outlet of the company


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SWOT Anal ysis:

Stren gths :

Levis enjoys high brand equity. People all around the

world recognize the brand name.

Levis products are unique and innovative in the style.

A lot of variety is offered by Levis ranging from

sunglasses to skirts and shirts.

The products are renowned and are considered as the

most durable i.e. the long lasting products.

Levis follows a high standard of quality.

Weakness:

Levis products are considered as very expensive.

Therefore a large percentage of people are reluctant to

buy the products.

As no discounts are present and products are sold atfixed prices many customers are lost.

Levis does not provide any services like free delivery

etc.

Opportunities :

Levis can do more well in the women section. This

section is give less importance as compared to the mensection.

The kids section, which has been started from few

years, should also be given proper attention to gain

customers.

Sales promotion can be increased by increasing the

advertisements expenses so as to enjoy a large number


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The main deciding factors for Levis store for

merchandising policyare:

Colour of the month

Space in store or store capacity

How much buffer stock to carry

General trends in the market place

Categories of performance

Category life cycle

Sales forecast

Daily Sales Report (DSR)

Moving merchandise and stock report


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Promotion:


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Mumbai: It seemed like

a clever marketing

gimmick when Levi

Strauss (India) Pvt. Ltd

offered an instalment

plan in September for

people buying its jeans

and other products.

The American jeans and casual wear

manufacturer is launching its brandLevi's 501 in India, and Akshay kumarwill be seen fronting its advertisingcampaign, which will be released by theend of the month.

The ads have been shot in the US and

will feature supermodel Sara alongsideAkshay.

The campaign is based on the theme ofLive Unbuttoned and from the look ofthis teaser photo, it seems set to be ascorcher


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As a celebration of its 15 years run in

India, denimwear brand Levi's

announced its latest initiative for the

young consumers as - 'Change your

World' campaign. The brand will offer

fellowships of Rs 1 lakh each to 15

passionate youngsters who want to

follow their dreams. Explaining the

concept behind this motivational

campaign, Shyam Sukhramani,Marketing Director, The Levi's Brand -

India, commented, "When you are

young, you just want to go out and do

your own thing. Similarly, when a

consumer wears a pair of Levi's jeans,

he or she dons a certain spirit. We arehere to celebrate that coming of age.

Our target audience is 15 to 30 years."


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Keeping in mind the net savvy

generation, the online medium will

be utilised as a strong platform for

the campaign that will run till 9thJune. Also, since the rock band

scenario in India is rapidly

evolving, the brand is exploring

musical possibilities to connect

better with the modern consumers.

Sukhramani further elucidates,"Levi's has been the originator of

jeans and the brand has been

closely asociated with music for

over 80 years now. With the

'Change your World' campaign we

will salute the aspiring youth bands

that create original music. They

can upload their music on our

website for free. Based on the

number of downloads we will

identify the most popular rock

band and give them the

opportunity to cut a music videothat will also feature our brand

ambassador Priyanka Chopra."

levi's (eom) submitted by kanika and urvashi

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