Levis Swot Analysis

Marketing ManagementDr. Ahmed Shalaby

Marketing Analysis (SWOT)Levi’s Strauss & Co. (LS&Co.)

By: Haytham A. Saidum

Marketing Analysis

Background History

• The company was founded in San Francisco, California by Levi Strauss in 1853 primarily selling wholesale dry goods.

• After few years ... they learned about the needs of the gold miners ... seeking a durable pair of pants, Strauss designed a pants from a heavy brown canvas. ( THE WORLD FIRST PAIR OF JEANS)

• By 1890 the popularity of their jeans and other dry goods had spread. Levi’s jeans were assigned a lot number “501” and sales had grown by year 1900.

• During 1930s the western movies began to glamorize the blue jeans. Levi’s jeans became an even more valuable product during the World War 2. by the 50s & 60s Levi’s jeans became a fashion wear.

• By year 1975, sales had reached $1 billion and rose to $2 billion in 1979.

Marketing Analysis

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 in the world and is registered in more than 160 countries.

The company employs a staff of approximately more than 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 2009 net sales of $4.1 billion, the company is committed to building upon strong heritage and brand equity as they position the company for future growth.

Levi’s Strauss - The Company

Marketing Analysis

Inspiring people with a pioneering spirit.

Strength Weakness Opportunities ThreatsInternalInternal ExternalExternal

50’s - 60’s - First American apparel trademark (Jeans).- Becoming a symbol of freedom, adventure. - Western movies began to glamorize blue jeans (1950)

- Woodstock rock festival (Levi’s were the essential fashion for emerging baby boom generation).- Gals Market

80’s - Levi’s 501 jeans were an icon & levi’s name is synonymous with jeans - Divisions seperation------------------------------

- Not focus on the Core product ... Diversification is too much------------------------------- Discontinued many licensing arrangement.- Closed 40 Factories.- Streamed lined staff.Reducing Payroll.

- Expanding retail opportunities/ Distribution (JC penny, Sears ...)------------------------------- 36$ Million Advertising Campaign focused on the unique and personnel image reminding the customers of the uniqueness of levi’s brand.

------------------------------- Competition.- Shifts in the fashion trends. (Lee, Wrangler,..)- High price fashion image brands; CK, Bill Blass

Historical SWOT Analysis

Marketing Analysis

Marketing Analysis

Historical SWOT Analysis

Strength Weakness Opportunities ThreatsInternalInternal ExternalExternal

80’s - Diversification (Offering products that can fit in any lifestyle) - Corporate Strategy (Developing new strategy - each division responsible for its Advertising)

- Not Focus- Slow growth among primary Market.- People see that levi’s is only Blue Jeans.- Competition (Lee, Wrangler..)

- People need more diversity. (Product Mix)- Women’s wear.

- Losing the Brand loyalty of the traditional Levi’s 501 jeans.

End of the 80s -

90s

- Introducing New Casuals but with continuing focus on their core jeans product.

- Motivating customers to remain within the brand Levi’s

- Introducing New Casuals to motivate customers. - Opportunities in new markets.

- Competition

Strengths :• Levi’s enjoys high brand equity. (People all around the world recognize the brand name.)

• Levi’s products are unique and innovative in the style.• A lot of variety is offered by Levi’s ranging from pants, sunglasses to skirts and shirts (Product Mix).• The products are renowned and are considered as the most durable.• Levi’s follows a high standard of quality.• Enhancing the consumer retail experience.

Weakness:• Levi’s products are considered as expensive. Therefore a large percentage of people are reluctant to buy the products.• Many Competitors with better prices. • Weak in the information technology systems.

Marketing Analysis

General SWOT Analysis

Marketing Analysis

Opportunities :• Levi’s can do more well in the women section. This section is give less importance as compared to the men section.• The kid’s 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 of customers.

Threats:• Intense competition in the worldwide apparel industry could lead to reduced sales and prices.• The revenues are influenced by general economic conditions.

General SWOT Analysis

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