Professional Documents
Culture Documents
Levi Strauss & Co. is a worldwide corporation organized into three geographic
divisions: Levi Strauss Americas (LSA), based in the San Francisco headquarters;
Levi Strauss Europe, Middle East and Africa (LSEMA), based in Brussels; and
Asia Pacific Division (APD), based in Singapore. The company employs a staff of
approximately 10,500 people worldwide, and owns and develops a few brands.
Levi's, the main brand, was founded in 1873 in San Francisco, specializing in
riveted denim jeans and different lines of casual and street fashion.
From the early 1960s through the mid 1970s, Levi Strauss experienced
explosive growth in its business as the more casual look of the 1960s and
1970s ushered in the "blue jeans craze" and served as a catalyst for the brand.
Levi's, under the leadership of Jay Walter Haas Sr., Peter Haas Sr., Paul Glasco
and George P. Simpkins Sr., expanded the firm's clothing line by adding new
fashions and models, including stone-washed jeans through the acquisition of
Great Western Garment Co. (GWG), a Canadian clothing manufacturer. GWG
was responsible for the introduction of the modern "stone washing"
technique, still in use by Levi Strauss.
Mr. Simpkins is credited with the company's record paced expansion of its
manufacturing capacity from fewer than 16 plants to more than 63 plants in
the United States from 1964 through 1974. Perhaps most impressive, however,
was Levi's expansion under Simpkins was accomplished without a single
unionized employee as a result of Levi's' and the Haas families' strong stance
on human rights and Simpkins' use of "pay for performance" manufacturing at
the sewing machine operator level up. As a result, Levi's' plants were perhaps
the highest performing, best organized and cleanest textile facilities of their
time. Levi's even piped in massive amounts of air conditioning for the comfort
of Levi's workers into its press plants, which were known in the industry to be
notoriously hot.
When advertising the 'Anti-Fit' product Levis must ensure that its
messages are clear and perceived by the desired audience in the
intended manner. Evans, Moutinho and Van Raaij (1996) believe that
…"the more we understand about the perceptual process both generally
and of the target market concerned, the more we can ensure that the
intended receivers of the message will interpret it in the intended
manner"… (pp. 55). The notion of branding can have significant effects
on consumer's perceptions of product characteristics and attributes.
Studies have shown customers can often not tell the differences
between the various brands but labels and their associations
definitely influenced their evaluations. (Consumer Behaviour G R
Foxall) This shows that customers' perceptions of products can derive
from marketing effort alone; brand images and brand differentiation
can be the consumers' only guide to want satisfaction. This is
particularly evident in a highly branded stylised market such as the
jeans market. Therefore pursuing the correct marketing campaign is
essential to appeal to the target audience, in an already highly
differentiated market. When shopping for designer jeans consumers are
more likely to consider purchasing a brand product from his or her
awareness set than from a company who's brand image he or she has not
been exposed to. Brand awareness is an obvious precondition to
purchase. (Jobber 2004)
In three different executions, models wearing the Anti-Fit jeans were shown
reacting to everyday objects that have suddenly taken on very odd
proportions.
One shows a man standing at a front door that is only a few inches wide.
Another depicts a man leaning down to unlock his car, which is only a couple of
feet tall and, in the third ad, a man negotiates an extremely tall chair in a cafe.
The campaign was shot by Vava Ribeiro, a fashion photographer whose work
has appeared in Vogue and Dazed & Confused. It was written by George Prest
and art directed by Johnny Leathers. The campaign will run in print and on
posters across Europe starting next week, with media through Starcom Motive.
Sue Chidler, the European marketing director at Levi's, said: "TV and print
campaigns work in very different ways and we felt the need to approach the
print campaign differently for autumn 2004.
"By using a fashion photographer we are confident the ads will have a
relevance in style magazines and will stand out as part of an outdoor
campaign."
BBH created television work for Levi's Anti-Fit in January. It abandoned the
epic style of previous campaigns such as "Odyssey" in favour of a laid-back ad
set in downtown Los Angeles and directed by newcomers Will Speck and Josh
Gordon.
Levi’s curve id- “it’s about shape not size”:
Levi Strauss & Co. Expands Curve ID Women's Denim Line
Levi Strauss & Co. has announced the expansion of its women's Levi's Curve ID
denim line, to include a new fit, new styles and extended sizes. Levi's Curve ID
jeans were launched in Fall 2010 with three fits that account for approximately
80% of women's body shapes. In an attempt to meet the needs of even more
women, a fourth Levi's Curve ID fit called Supreme Curve was added. Company
tested this fit on women around the world and the response was incredible.
Finally, jeans that fit and flatter real curves! The Supreme Curve fit is initially
available in select stores in Brazil, South Africa and the US as well as select
countries in Europe. Supreme Curve will also be available for global consumers
online at Levi.com. For spring 2011, the Slight, Demi and Bold Levi's Curve ID
fits are available in Modern or Classic Rise and a variety of styles (Skinny,
Straight and Boot Cut) and finishes. The company's fits were initially offered in
waist sizes 22 to 32 inches. For spring 2011, size 34 will be added in all fits and
styles. Sizes 36 and 38 will be added to the line in fall 2011.
As part of a promotion to pimp Levi’s Curve ID Skinny Jeans, two women, Jessie
and Reanin, with a lot of help from BBDO Auckland, strapped a tiny camera
and took a walk. “Levi’s tells us it’s the fastest, most successful viral campaign
Levi’s has ever done, and it’s only just started, so we’re pretty chuffed,”
Colenso BBDO, Auckland executive creative director Nick Worthington said.
We can all agree with that statement because the video has achieved almost 6
million views since it went up February 14th. And that means viral success!
In Hong Kong Levi Strauss banked on a series of live events and social media
executions to push its global jeans brand for women Curve ID in Hong Kong.
Over the next month the fashion brand promoted positive images of women to
young, fashion-savvy women who struggle to find the perfect jeans for their
shape.
The launch event included a street team of models handing out tote bags and
ID tags to claim one of the 200 Levi's Curve ID giveaways at select Levi's
locations throughout Hong Kong.
This included the creation of three viral videos and a Facebook page, created
by the agency especially for the Hong Kong market.
The videos feature three women attempting to augment their bodies (or the
jeans themselves) in order to get the ideal fit, capturing the insight that a lot of
Chinese women believe they need to change their bodies to fit into clothes,
and not the other way around.
Each video builds on a specific insight, highlighting Levi's three new styles:
Slight Curve, Demi Curve and Bold Curve. The videos will run in both Hong
Kong and China social media.
The videos come with a call to action to "join the revolution" via a Facebook
fan page that encourages women to upload photos of themselves which are
then "revolutionized" with special effects, the end result being a poster which
encourages other women to join the movement.
The pair teamed up to create six new looks using Levi's Curve ID jeans for well-
known celebrities in Hong Kong, including Hilary Tsui. The photos will be on
display at Festival Walk.
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. The four Ps represent
the sellers view of the marketing tools available for influencing buyers.
Product Place
Product variety Channels
Quality Coverage
Design Assortments
Features Locations
Brand name Inventory
Packaging Transport
Sizes Prices Promotion
Services
Warranties List price Sales promotion
Returns Discounts Advertising
Allowances Sales force
Payment period Public relations
Credit terms Direct marketing
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.
TARGET MARKET
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 favourite 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 .
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 accessories — designed 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 stylish
and innovative products — including a full line of tops, footwear, outerwear
and accessories — for a broad range of consumers.
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
ofLS&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. 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.
PRICE:
It can be simply defined as:
“The currency value charged to a Client by the company for a product or
service”.
Price is one of the most important elements of the marketing mix, as it is the
only mix, which generates a turnover for the organisation. 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:
All products are sold at listed price, which are settled by the Levis Company
(Singapore). There is no discount to offer.
Credit Sales:
They also deal with credit sales, but they don’t overcharge the customers, they
pay it theirself to the bank (3 %). Products are only sold for cash or on credit
cards.
Discount:
They don’t give the discount to their customers, even to the employees of the
Levis. Their prices are fixed.
Levi’s India changed the marketing strategies for its Denims and Non-Denim
brands. On the one hand it is seeking to expand its presence in the Premium
and Super-Premium segment by launching more products in this segment. On
the other hand, it is seeking to strengthen its Value Brand – Signature.
Launched last year and priced between Rs 599-Rs999(USD 15- USD 25) in small
towns and upto Rs 1399(USD 35) in larger towns,Signature seeks to capture a
large share of the Value segment of Branded Jeans – which is currently
estimated at about 10 million units – by having more than 5000 sale points for
the same throughout India (as against 1000 currently).
In the Premium segment the prices are in the range of Rs 2000-4000(USD 50-
USD75), Super premium has price range of Rs 4000-6000(USD 75-100) and
Connosieur segment is Rs 6000-12000(USD 150-300). Levi’s wants to increase
its presence in these segments. It however does not want to be present in the
Mid Price Segment ie Rs 1000-2000(USD 25-50) .Thus Levi’s India is following
the International trends where Value and Premium segments are expected to
do better than the mid priced segments. The Value offering of Signature is
Levis’ take on the local Indian brands who are selling decent jeans in the range
of Rs 600-Rs1200/ – but who do not have the brand value of Levi’s.
The estimates for the market of Premium and Super Premium denim in India
are about 7 million and 3 million (though I need to verify the same) and offer
substantial possibilities for growth for brands like Levi’s.However, the going
will not be as smooth since Levi’s will not be able to offer great washes in its
Signature line – and washes are one of the biggest factor for purchase of Jeans
by the young.
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:
LEVIS distributes JEANS by the Channel Members that is through retailer and
wholesalers. Retailers:
HKB: Defence, Liberty Market , Mall MarketRaja Sahib, Link Road Pace, Gulberg
Sheikh Innayat Ullah, Anarkali
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.
STRATEGIES:
LS & CO. placed its products according to following strategies.
PROMOTION:
Promotion objectives:
To inform, persuade and remind the potential customers about its
products
Increase awareness and build primary demand
To build strong brand equity.
Build Company’s image as innovator.
To create bonds between public and Levi Strauss by helping the people.
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.
Levi’s uses the following promotional strategies to promote its product.
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.
Advertising mediums:-
The advertising media used by the company are
Television
Fashion Magazines, Newspapers
Internet.
Bill boards, banners etc
Television & Radio: Advertisements of Levi Strauss & Co. are very
innovative and eye-catching. Buyers are attracted towards the product.
The advertisements are placed at the international level.
Fashion Magazines & Newspapers:
For fashion magazines and newspapers LS&Co. is a target due to its
grand brand equity ,it has become a benchmark for all the others to
follow. The newspaper gives coverage to the social events in which LS
&Co takes part with great interest. Whereas fashion magazines are
always dealing with the gorgeous models working with LS& Co and the
unique outfits of the models.
Internet.:-
Levis provides up-to-date information to their customers through
electronic media i.e. from their website.
Billboards & banners:-
Billboards and banners are also used for the advertisement purpose.
CONCLUSION
Levi Strauss & Co. is one of the largest company in the business world, having
headquarters in all of the continents and selling their most significant product,
clothing. It is well known that Levi¡¦s is a very successful company producing,
studying people wants and needs, selling, distributing, and promoting their
products in a very competitive textile sector, especially in jean market, for
many years. Levi Strauss & Co. is an international clothing company that clearly
illustrates both the ups and downs of international marketing. They have been
a world leader in the jean apparel market for many years, but along the way
they have suffered due to a lack of adaptation to customers¡¦ needs,
combined with a continual increase in competition.
The world really isn't that big and the importance of the term Sglobal
economy becomes more and more applicable each and every day. , 1996)One
of the main detractors from this, especially in Levi's case, is the image of Levi's
is not debatable and sharing business decisions with another partner will
almost guarantee conflict. When developing the promotion-mix the company
must choose a strategy depending on the buyer-readiness, Levi Strauss which
is a consumer-good company will put more of their funds into advertising,
follow by sales and promotion, personal selling and then public relations. This
is probably the best way for Levi's to ensure the quality, the procedure, and
any trade secrets they have stay safe when producing their jeans. You can see
in Levi's range of jeans that it has different styles, colours and textures, for the
different types of targets. Therefore in the younger generations, Levi's is a
great mix with the Japanese environment.
Levi’s has been around for more than a century, beginning business in 1873.
Although there may have been some bumps along the road, Levi’s has proved
to have staying power in terms of company longevity. Part of that is due to the
ability to adapt. And adapting it is, leading the way for jean apparel in terms of
sustainabilityLevi’s has proven to be a sustainable company in terms of its
longevity. Combine that with the GoodGuide top honors of environmental and
societal sustainability, we can look forward to not only another 100 years, but
perhaps a more sustainable 100 years from Levi’s.
ACKNOWLEDGEMENT
DECLARATION
As a student of B.COM. (H), final year Ritika Pradhan has prepared
been acknowledged.
GUIDE:
STUDENT
Ritika Pradhan
INTRODUCTION
A PROJECT REPORT
ON
THE MARKETING STRATEGIES OF