Levi's

INTRODUCTION

•Levi Strauss & Co was founded in 1869 by Leob Strauss.

•From 1960s through the mid 1970s, Levi’s experienced explosive growth in its business.

•With the onset of denim trend in India, it entered the market in 1994-95

•Since then it has become an iconic and the most acknowledged brand in India.

VARIANTS OF LEVI’S

Levi’sDockersLevis Signature ---- > DenizenRed Loop

MARKET SHARE

22%

14%

8%15%

4%

37%

MARKET SHARE BY RESEARCH AGENCY

Levis

Lee

Wrangler

Pepe

Tommy Hil-figer

Others 33%

19%6%

11%2%

28%

MARKET SHARE BY OUR ANALYSIS

Levis

Lee

Wrangler

Pepe

Tommy Hil-figer

Others

GROWTH

2005 2006 2007 2008 2009 2010 20110

2

4

6

8

10

12

3.7%

5.7%

10.5%

5.2%

3.8%

4.2%

6.1%

Levi's Growth

Levi's Growth

BRAND PORTFOLIO

Segmentation •Segmentation is the identification of subsets of buyers within a market that share similar needs and demonstrate similar buying behaviour.•Basis for Market Segmentation: DEMOGRAPHIC-----GENDER and INCOME

Targeting

•Target Marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments.•18-35 year old age group•Super Premium and Premium Denim for the High-Income Customers•Denizen launched targeting the Middle-Income group

STP STRATEGY

The firm positioned its products with changing times and changing demands, keeping existing customers and capturing new markets. Increases in sales ultimately increased profits.

COWBOYS -> HEROES -> COOL -> RUGGED

Positioning

SEASONAL POSITIONING

FOR MEN: LOOK SHARP WITH ALL NEW FITS, THIS SEASON

FOR GIRLS: THE SEASON BEST STYLES, FIT TO FLATTER YOU

SWOT ANALYSIS

STRENGTH:- Market share leadership

- Strong brand equity- Finance and access to international market

- Management - Product innovation

abilities

WEAKNESS:-High cost of brand

protection.- Lack of control over distribution decisions

OPPORTUNITIES:- Emerging markets - Expansion abroad

- Technological development

- Development in other industries

- Total market for casual wear is growing

- Diversify into related products.

THREATS:- Competition

- Economic downturns - Rising sales of substitute

products.- Adverse government

pressures.

PORTER’S FIVE FORCES

LEVI’S

Competition among Existing Firms:

- Frequent price cutting

- Intense advertising campaign

- Frequent introductions of new products

Bargaining Power of Suppliers:

- Large number of producers

- Substitutes available

- Low switching cost

Threat of Potential Entrants:

- Low cost jeans

- Unbranded jeans

Threat of Substitute Products:

- Better quality and substitute

- Price war

- Cargo, legging for girls, bottom wear

Bargaining Power of Customers:

- Large number of buyer

- Many alternative brands available

COMPETITOR ANALYSIS

LEVI’S- Unarguably the most iconic and

famous brand of jeans- Known for its durability and

ruggedness- Offers remarkable value for money

LEE- Offers stiff competition against levi’s- More geared towards the younger

market- Decent value for the money

- Not nearly as durable and rugged as Levi's and Wranglers

WRANGLER- Offers competition against Levi's

- Has an unshakably "cowboy" vibe- Rugged construction

- Very affordable

PEPE-Dominate in women wear

- Good value for money

MARKETING STRATEGY

•Levi’s India is changing the marketing strategies for its Denims brands

•Lower income group and middle income group can now afford branded and premium apparel.

•For premium jeans worth more than Rs. 4000 per denim, they introduced the scheme of payment through EMI.

•Levi’s formed a supply chain partnership with Wal-Mart.

RESEARCH AND METHODOLOGY•Research leads to search for knowledge or systematic investigation to establish facts•Sample design - Exploratory Research - Descriptive Research - Causal Research•Our project is based on descriptive research•Population - Emphasis of the study was on the denim customers in India•Sample Frame - Denim customers in Delhi, Gurgaon, Noida, Greater Noida

•Data Collection - Primary Data 1. Questionnaire 2. Retailers 3. Distributors (Telephonic Conversation) - Secondary Data 1. Internet articles and Newspapers

CUSTOMER ANALYSIS

PRIORITY 1 PRIORITY 2 PRIORITY 30

10

20

30

40

50

60

70

BRAND NAME AND QUALITYCOMFORTPRICE AND DESIGN

150 Individuals, majority of them under the age of 34 were considered for our survey in Delhi and Noida. The consumer favours the product on the basis of Comfort which act as the first priority for then consumer favours the Brand Name and Quality and last but not the least is the Price and Design

RETAILER/DISTRIBUTOR ANALYSIS

• Demographic segmentation based on Gender and Age group with 60% male customers and largest customer base of 21-30 years.

• Brand Personality was the prime awareness source for Levi’s customers.

• Levis Strauss captured the market share by 70% among the Levi’s sub brands.

• Offers Customer benefits programs like membership cards.

•Uses Third Party and Franchisee type of distribution system.

• Distributors work solely on the demand being generated by retailers.

•Denizen a cause of concern, not able to make its presence felt in customer’s mind.

RECOMMENDATIONS

•Adopting a more aggressive marketing strategy

•Laying more emphasis on Women & kids apparel

•Rendering of discounts and offers to customers so as to boost the sales and build brand loyalty

•Reduction in the price so as to cater to a different segment of customers

Kavisha AgarwalKritika OjhaMadhumitha AiyerMayank JoshiNarvir YadavNikita NahataNishaPriyanka Chatterjee