Levi’s Straus & Co. Presented by: Shrijesh K. Govindan Roll no. 52
Levi’s Straus & Co.
Presented by:
Shrijesh K. Govindan
Roll no. 52
Introduction
• Levi Strauss & Co. (LS&CO.), one of the world's largest apparel manufacturer brand
• Sold in over 110 countries, in more than 55,000 retail locations worldwide
• Manufactures jeans in approximately 108 sizes and 20 finish fabrics
• 3 Brand Portfolio - Levi’s ®, Dockers ® & Levi’s Strauss Signature®
Levi’s Product & Brand Portfolio
External Marketing Environment
Classification of Customers (%)
Liberated Youngsters 13
Modern Customers 18
Behind the times 20
Rebellious Youngsters 22
Orthodox Customers 27
Social Environment
External Marketing Environment
• Technological Environment
– Levi’s focuses on internet advertising
– Levi’s has enhanced its distribution network through Electronic Data Interchange (EDI)
– Levi’s Value Delivery Network Enables coordinated supply of fabric to retailers and suppliers
– Focus on achieving global scope efficiency through decentralization and centralization
External Marketing Environment
• Demographic Environment– Focuses more on mature generation– Does not position itself as a brand for
fashion statement
Situational Analysis
• Levis is approaching to saturation in the Jeans Market
• Development of markets distribution and sales technology has caused loss of market share
• Levis biggest challenege is to cater changing consumer tastes and competition in lower and high end brands
• Levis has come up with new engineered jeans and Levis 501 in response to above challenges
Competitor Analysis
Levi’s Distribution Channel Management
• Retail Outlet Status
– 500 outlets at prime locations in India
– Current Space: 1 million sq feet
– 3000 shades and design
– Accessories includes : Footwear/ Eye gear/ Caps/ Belts/ Wallets/ Carry bags
• Marketing Channels
– Focus on retail relationship
• Segments Identified
– Trend Initiators
– Trend Influencer
– Early adopters
– Traditional
– Value driven
Levi’s Growth
• The innovation of the rivets in the jeans differentiated Levi’s jeans from others because of its increased durability.
• Over the years, Levi’s jeans have become more popular, initially due to its durability. Jean products expanded, targeting different consumers.
• Levi Strauss & Co. eventually captures most of the denim jean market, becomes the largest manufacturer of jeans, and profits reach $1 billion by 1974.
• The USP and UCP of Levi’s jeans is durability and good product quality.
Levi’s Pricing
Levi’s Pricing: Recent Development
• Plans to focus on lower and high end by vacating the middle price segment
• Premium segment will see a price rise of 15% in average pricing
• Local brands entry and low growth compelled levis to vacate the middle price segment (Spykar, Killer, Wrangler)
SWOT Analysis
STRENGTHS
• History
• Brand name
• Finance and access to international capital
• Management
• Expertise in the jeans industry (R&D)
• Distribution channels & global sourcing
WEAKNESSES
• High costs of brand protection
• Lack of control over quality (licensing)
• Lack of control over distribution decisions (retailers pressure to stop selling on the web)
SWOT Analysis
OPPORTUNITIES:
• Arising of new market segments
• Technological development lower production and coordination activities
• Low manufacturing and production costs in international markets
• Development in other industries such as electronic (MP3 PLAYER) could pose new opportunities for complementing new LEVI’S products
• Total market for casual wear is growing
THREATS
• Saturation of the jeans market
• Competition from products of the higher end of the market
• Economic downturns in some countries
• Fast changes in the consumer tastes
• Local regulations on the advertisements in countries like India, china
• Lack of protection of property rights
• Increase in the local competition
Objective
• Since the patent of the rivets in jeans in 1873, the company achieved monopoly power.
• Monopoly power was gained through entry barriers. The patent granted the firm monopoly rights to sell riveted jeans.
• Also by product differentiation The rivets on the jeans allowed for longer durability, a form of vertical
differentiation.
• Product differentiation and barriers to entry allowed the company to gain more popularity and market share.
Levi’s Promotion
• In 2002, Levi’s brand was rated as the No. 1 brand for brand awareness and brand retention
• The company frequently promoted music & theatrical productions
- Sponsored artists incl. Christina Aguilera, Mariah Carey, Ben Folds Five, The White Stripes etc.
• Levi’s ads stress the “youthfulness "of their brand jeans
- Television advertisements are more innovative and target younger crowds
Levi’s Promotion
• The “TWIST” Campaign
• The “ ODYSSEY” Campaign
• CSR Activity with Levis Strauss Foundation
Budget of advertising in the following media
Television• Timing - 19:30-22:00
• Pricing - 50000/30 sec
• Basis of Selection - This is Prime time Includes Major Running dramas
• Days to run – 10
• Time to Run Per Day – 5
• Total Cost per day – 150000
• TOTAL – 1500000
Budget for Newspaper: 1,00,60,000
Budget of advertising in the following media
RadioTotal Cost per city: 10,00,000.00
• Total Cities covered: 05
Mumbai
New Delhi
Bangalore
Chennai
Hyderabad
• Total Cost: 50,00,000.00
Budget for Billboards: 1,00,00,000
Coordination with distributors
• Channels of distribution:
Functions of the brand manager in production
• Identifying new product candidates
• Gathering market requirements
• Defining product requirements
• Scoping and defining new products at high level
• Building product roadmaps, particularly Technology roadmaps
• Working to a critical path and ensuring all products are produced on schedule
• Ensuring products are within optimal price margins and up to specifications
• Product Life Cycle considerations
• Detailed Product planning
Functions of the brand manager in Sales
• Strategic market & sales potential analysis to provide in-depth market, & competitive information important for Product growth & activities.
• Develop & execute key activities, tactics, action plans, and investment to impact the market share, market growth strategies, and profits for key products.
• Develop Product strategy, promotional materials & activities to deliver Product objectives aiming at market differentiation, maintaining leadership position, and increasing awareness
• Ensure Sales & Marketing alignment towards local priorities, objectives & field execution.
• Work closely & develop professional relationships with other functions in the organization to successfully execute above highlighted responsibilities.
Thank You