Q-2) ETOP Analysis of Levi's (with specific mention of reasons for the market share concerns

And the potential opportunities missed by Levi's)?

A-2)

ETOP ANALYSIS

Levis Strauss & co. has been threatened by competitors which are:

Tommy Hilfiger

Calvin Klein

Lee and Wrangler.

These jeans are advertised as designer label and are being endorsed by celebrity giving more psychological satisfaction and a symbol of social status. All this has not only reduced the market share of Levis over year but has significantly affected Levis revenue. Also the availability of substitutes reduces the market share. These competitors have diluted the monopoly power of Levis in jeans wear.

The Opportunities available to Levis currently are to introduce Levis signature (the low cost brand) worldwide so as to increase its market coverage and larger market share.

Sales promotion can be increased by increasing the advertisement expenses so as to enjoy a large number of customers.

Also Levis should tie up with world renowned designers to launch their premium jeanswear to as to stop loosing consumers to its competitor. 

Q-3) Brand Value pyramid of Levi's Jeans 501 and the Brand Identity Prism of Docker's to

be clearly explained ?

A-3)

BRAND VALUE PYRAMID

LEVI’S JEANS 501

Self Confidence

Self-esteem, Assurance,

Bonding, Fulfillment

Long Lasting, Durability, High Quality

Comfortable, Fit, Relaxed pants, Stylish & Designers

Company guarantee/backup.

Stylish Appearance, Appropriate for outdoor work, Looks are classic

Variety & Competitive Price, Good material/stuff like blue denim (cotton fabrics,

2 horse patch and red pockets), Ruggedness , Masculine personality, High traditional linkages.

RELATIONSHIP Distinctiveness, Undependability,

Appreciating needs,

Empathy, Ideal Man REFLECTION PHYSIQUE

Masculine, Perfect Man,

Pants Not Jeans, Elite class, Stylish,

Comfort fit, Fashionable, Trendsetter Interlocked wings

LEVI’S DOCKERS

PERSONALITY BRAND IDENTITY PRISM SELF IMAGE Assurance, confidence,

Honesty, Classic, Unique, Independent,

Authentic, Contemporary, Comfortable

Approachable, Original,

Competent, Universal CULTURE Old American Culture, Dynamism, Individualism,

Inspiring Values.

Relationship :-Dockers 501 brand function with ideal man. A man who is fun loving butsensitive, a man who is dynamic but responsible, a man who is successful but down toearth, a man who is fashionable but not the slave of it and need comfort and affordabilityin things.

Reflection :-As it denotes the desired image of the user of the brand and for Dockers the person perceives it as the brand of authentic, freedom loving, fashionable yet friendly, sincere and reliable in nature.

Self image :-As it the image of oneself so a person purchasing Dockers consider himself successful, freedom loving, caring, sincere and competent in nature.

Culture :-Dockers 501 represent the culture of young America .The America which is youngand dynamic which want to stay stylish and fashionable but at the time want to looksincere towards its work and competent to beat any hurdle.

Personality :-Dockers 501 represent itself as sincere (down to earth, honest, cheerful and wholesome) and competent (successful, intelligent, and reliable).

Physique :-Dockers 501 pants to the retail trade as a major fashion statement – an alternative to jeans - and the driving force in the "new casuals" category. Pants that can be wore in office, parties, gaming etc and yet comfortable and affordable.

Ques. 4: Why was the creation of Dockers’ an important concern for Levi's Strauss Image? Why

was it created as a sub brand? What were the specific marketing & advertising initiatives takes to

make the launch effective?

A-4)

Menswear research department revealed a fact that age group of 25-49 year old U.S. males purchased an

average of one to two pairs of jeans annually, as compared to an average of four to five pairs for 15-24

years old. So they decided to first address opportunities in the casual slack market because it was felt that

existing product lines did not sufficiently satisfy the needs of the 25-49 year old male customers.

As these baby boomers are different in tastes and lifestyle from their parents’ generation, they wanted

their clothes to be a break from tradition. In order to satisfy an unfulfilled need in the men’s pant market,

they were decided to appeal to the baby boomers fashion demands: casual and comfortable, stylish, the

right pants for a variety of occasions and meeting the LS & Co. high quality standards. For these reasons,

they need a pant that combined style, versatility, and comfort that would be appropriate for both

professional and leisure activities.

LS & Co. recognized that the casual pant market represented an enormous opportunity. Between 1981-

1985, jeans retail volume had decreased by 11% while slacks volume had increased by 19%.

LS & Co. was determined to maintain the brand loyalty of the “Levi’s jeans generation” even if they

were no longer buying traditional jeans. Since the Levi’s Strauss & Co. was known for its jeans, so the

name of this new product had to establish its independence and leverage the Levi’s brand name in a way

so as to maintain a link to the Levi’s name and heritage but not detract from the Levi’s core jeans focus.

The team decided the name of this new casual as Levi’s Dockers.

Being Dockers as a sub brand, the Levi’s name would help give the new pant credibility and capitalize on

the tremendous loyalty of the target group to the Levi’s brand.

Marketing and Advertising Initiatives:

1. LS & Co. concentrated distribution of this new casuals in department stores and chains where the

majority of 25-49 year old men did their shopping.

2. The company worked closely with retailers to generate excitement and support for its new pants.

3. They provide sales support in a variety of ways, including sales kits that provide a “road map’ for

retail-based marketing, cooperative advertising, and sales promotion programs.

4. The company also offered supplement financial support for advertising and promotional activities

to important high-image department stores.

5. The Company concentrate on the establishment of Dockers shops within main floor men’s areas

of major department stores.

6. The various ads were to create a singular, appealing, and relevant image for the brand that

elevated Dockers above all other possible alternatives.

7. It was also important for the ads to convey the high quality of the Dockers pants line and maintain

the link to the Levi’s brand name and heritage.

8. The Dockers ads were slotted to run in 11 major regional markets where Dockers pants were sold.

9. They used spot TV in all eleven targeted markets. It was considered the most effective medium to

communicate the Dockers’ “attitude” since it provided an intrusive and impactful means of

delivering the message to a broad target audience quickly and efficiently.

10. Sales promotion for e.g. gifts with purchase program were planned during kick-off and key

seasons to create in-store excitement.

11. LS & Co. organized an advertising kick-off party in New York City for buying groups, trade

press and key retail executives.