Why Denizen Lounge Their Brand in China(Assignment on brand)

Class: MBBA EXE

Submitted to: …………………

Submitted by : RASHID ALI

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 a n d c a s u a l p a n t s m a r k e t s . T o d a y , t h e L e v i ' s t r a d e m a r k i s o n e o f t h e m o s t r e c o g n i z e d i n t h e w o r l d a n d i s registered in more than 160 countries. The company is privately held by descendants of the family of Levi Strauss. Shares of company stock are not publicly traded. The company employs a staff of approximately 8,850 people worldwide, including approximately 1,000 people at its San Francisco, California headquarters. Levi Strauss & Co currently makes jeans in approximately 108 size sand 20 finish fabrics. The company is committed to building upon strong heritage and brand equity as they position able company for future growth.

BRANDS:

The products of Levi Strauss & Co are sold in four brands.

Levi's: Since their invention in 1873, Levi's jeans have become one of the most successful and widely recognized brands in the history of the apparel industry

Dockers:

Dockers brand, which pioneered the movement toward business casual, this brand launch in 1986 and now available in numerous countries.

Levi Strauss Signature: In 2003 the launch of the Levi Strauss Signature brand, giving value consumers high-quality and fashionable clothing from a company on which the consumers trust.

dENiZEN:

dENiZEN was created by Levi Strauss & Co. catering to the new generation. dENiZEN symbolizes youth, having a forward-thinking mentality, making a difference and celebrating life. The dENiZEN brand offers great fitting, quality Jeanswear for a new generation of upwardly mobile youth at affordable prices.

DENIZEN LOUNGE THEIR BRAND IN CHINA:dENiZEN was created by Levi Strauss & Co. catering to the new generation with an international perspective. Currently, the brand has established its presence in many Asian countries such as Hong Kong, China, Singapore and Korea. Eventually, dENiZEN will cover Latin America and other nations.

dENiZEN symbolizes youth, having a forward-thinking mentality, making a difference and celebrating life. The dENiZEN brand offers great fitting, quality jeanswear for a new generation of upwardly mobile youth at affordable prices. The Denizen collection’s embodies a modern focus and well-craftsmanship that has made Levi Strauss & Co. famous around the world, highlighting great quality jeans that are fit for everybody. dENiZEN will be both Inspiring and Inclusive as she seeks to offer the new generation what they are looking for – stylish, well-made, affordable and comfortable clothes from a company they trust. dENiZEN are the outfitters for a bright future!dENiZEN™ means “inhabitant”: belonging to a community of family and friends. Denim is in the name, the heart of the brand. dENiZEN inhabit the lives of the youth generation by inviting them to fit out and start up something collectively, pursue their passion, take action and celebrate life by making a difference. Since 1873, Levi Strauss & Co. has been outfitting the world in denim. In 2010, a new global brand, dENiZEN™ from Levi’s® was created. denizen™ is dressing the new generation with well-crafted and great fitting Jeanswear and other fashion essentials that are accessible to everyone. When they fit out a pair of dENiZEN™ jeans, they look good, stand tall, and feel confident to embrace life.

History:

The first dENiZEN store opened in August 2010 at the high-end Jiu Guang Sogo Department Store on West Nanjing Road, a shopping hub in Shanghai. It later expanded to other parts of China, South Korea, India and Singapore. Finally, starting this year, dENiZEN brand jeanswear will be sold by retailers in Pakistan, USA and Mexico too. dENiZEN products are distributed through franchised stores in Asia Pacific. dENiZEN™ was born! For the new generation who loves dressing up in fashionable and well-crafted jeans. The dENiZEN brand is designed for 18 to 28-year-olds who seek high-quality Jeanswear and other fashion essentials at affordable prices. The product collection – including a variety of jeans, tops and accessories – complements active lifestyles and empowers consumers to express their aspirations, individuality and attitudes. Currently Denizen is working in six countries which are India, China, Pakistan, Mexico, Singapore and USA.

Mission Statement:

We seek profitable and responsible commercial success creating and selling jeans and casual clothing. We seek this while offering quality products and service and by being a leader in what we do.

Vision Statement:

We are the embodiment of the energy and events of our times, inspiring people with a pioneering spirit.

Target market:

Market Segmentation:

Segmentation is the basis for developing targeted and effective marketing plans. Furthermore, analysis of market segments enables decisions about intensity of marketing activities in particular segments. A segment-orientated marketing approach generally offers a range of advantages for both, businesses and customers.

Market segmentation is the selection of groups of people who will be most receptive to a product. The most frequent methods of segmenting include demographic variables such as age, sex, race, income, occupation, education, household status, and geographic location; psychographic variables such as life-style, activities, interests, and opinions; product use patterns; and product benefits. Much segmentation involves combinations of these methods. No matter how segments are defined, however, they are characterized by considerable change over time. The readings in this section exemplify areas of rapid change.

BASIS OF MARKET SEGMENTATION:

dENiZEN segments its market on different basis. The detail of each segment given below in detail:

Demographic Segmentation:

There’s little excuse for being surprised by demographic developments. The main demographic force that marketers monitor is population, because people make up markets. Marketers are keenly interested in the size and growth rate of population in cities, regions, and country; age distribution and ethnic mix; educational levels; household patterns; regional characteristics and movements. The company makes clothes for men, women & teens. So everyone is a potential customer for dENiZEN. dENiZEN makes an effort to appeal to all Customers in one way or another, which has been a key to their success over the years. Assuming that the world population is growing dENiZEN can infer that the market for jeans is also growing. Consist of dividing the market into groups bases on variables such as age, gender, family size, income, occupation, education, religion, race and the nationality. dENiZEN Levis Company’s main segmentation variables are summarized below:

Age:

Few years ago dENiZEN Levis Company segmented its customers according to their age. Its provides all type of brands for the people aging between 15 to 28 years. The target audience is the young people who wear jeans & T-shirts as fashion.

Gender:

Gender segmentation of dENiZEN Levis Company is for male and females. They manufacture brands for both genders.

Income:

The brand is said to be built around the needs of the new emerging middle class and is all about giving them jeans at affordable price points and up-to-date fits and finishes. Levi’s is aiming to price its Denizen brand in the range of $15-$25/

Occupations:

In the occupational segmentation they have segmented their market in different ways. Students, professionals, business men & women and executives.

Education:

Well educated people. Specially youth in universities, schools & colleges

Geographic Segmentation:

Geographic segmentation calls for dividing the market into different geographical units such as nation, states, regions, countries, cities, or neighborhoods. The company can operate in one or a few geographic areas, or operate in all but pay attention to local variations. dENiZEN Levis Company has segments its market according to these region that is given below:

Countries in this Region:

India, Indonesia, Japan, Singapore, Pakistan, Philippines, Korea, Malaysia, Taiwan, Vietnam.

Psychographic Segmentation:

Basis of Psychographic Segmentation are given below:

Life style

Activities

Interests

Personality

Values

Behavioral Segmentation:

In this segmentation following segments are consider by dENiZEN Levis Company:

Occasions

Brand loyalty

Usage rate

Benefits

Target Market:

Once the firm has identified its market-segment opportunities, it has to decide how many and which one to target. dENiZEN has opportunities in different segmentation. They target its market according to their brands and relating segmentation. In evaluating different market segments, the firm must look at two factors: the segment’s overall attractiveness and the company’s objective and resources. Mostly dENiZEN Levi’s targets its market among the following classes:

Middle Class:

This class includes people having good education youngster (students) and professionals (adults). They have a great touch with the world and they prefer those products which has comparatively less price. They cannot afford to wear costly products. So people from this class will also targeting as we know that dENiZEN is made especially for this class.

Upper Class:

People who belong to this class they always try to experience those products which provide them prestige and quality products. Due to high income class they do not consider the price factor. So dENiZEN Levi’s is the brand that has eared popularity throughout the world and it is symbol of prestige and quality which is demanded by this class. So Levi Strauss Company is targeting this class and people from all age rang and both genders will be targeting from this class.

Brand Positioning:

dENiZEN™ has the brand personality filled with vibrancy, energy that resonates with the young adults. Target market for dENiZEN™ would be youths and young adults, age 15 to 28,middle-class consumers as inferred by the price of the range of apparels offered by dENiZEN.In Singapore, dENiZEN™ is competing with Regional and International Brands under the Apparels Sector in the Retail Industry. There are currently 18 stores in Singapore, mainly located in Heartland Malls and major Shopping Centers. We have chosen 2 important attributes – Price & Quality of Apparels (Jeans in particular) to illustrate the competitive business environment that dENiZEN.

dENiZEN has its relationship with Levi’s – a jeans specialty, and Denim is in the name, the heart of the brand dENiZEN. As such, the quality of the jeans produced by dENiZEN has relatively high quality compared to its competitors in the existing market. The price set by dENiZEN is thus justifiable and most often, price bundling technique is used as a promotional tool to attract customers.

Points of Parity & Points of Difference:

Denizen's Point of Parity with its competitors include the common target market of the youths and the message of ‘Value for money' supported by the presence of an international brand to market itself. However, being a Jeans specialty and leveraging strongly on youth trends and social media, Denizen's points of difference may well be the key unique selling point and competitive edge over its competitors.

Customer-Based Brand Equity of dENiZEN

Salience:

It's means broad awareness of the brand. The first step in building a brand equity is the brand awareness that contains two parts; brand recognition (how easily customer identify a brand after exposing some cue or a physical product) and brand recall (how easily customer recall the brand without showing a cue while making purchase decision or thinking the product category). As dENiZEN is establish in 2010 so it is new in market due to which it has low awareness and low recall and recognition.

Brand performance:

It is describes how well the product or service meets customers' more functional needs. Brand performance directly related with the features of the product that differentiate it from others. dENiZEN has jeans specialty in Asia cut and fitting. It provides friendly customer services. It has bright stores and its products are easily available in market

Brand Imagery:It is the second part of brand meaning and also called the emotions part of brand meaning (Brand performance is the logic part). It mainly depends on the intrinsic properties of the product or service, including the way how well the brand attempts to meet the customers'

psychological or social needs. dENiZEN provides products which is made for young, fresh, vibrant and trendy people. It already create a very strong image in the minds of youngster mostly ages from 15 to 28 years.

Brand judgments:Brand judgments are customers' personal opinions about and evaluations of the brand, which customers form by putting together all the different brand performance and imagery associations. dENiZEN make a very strong image in the mind of the customers that it provides a products which are of good quality at affordable price.

Brand Feelings:These are customers' emotional responses and reactions to the brand. The emotions evoked by a brand can become so strongly associated that they are accessible during product consumption or use. When customers use dENiZEN products they feel cool, excited, amiable, easy and comfortable.

Brand Resonance:The final step of the model focuses on the ultimate relationship and level of the identification that the customer has with the brand. As dENiZEN is new in the market so in start it has very low customer loyalty but the people who use Levi’s Strauss products they always prefer to use dENiZEN products.

SWOT Analysis:

Strengths:

Pioneer in Jeans

dENiZEN products are unique and innovative in the style.

A lot of variety is offered by dENiZEN ranging from jeans and shirts for both male and female.

Diversity

The products are renowned and are considered as the most durable i.e. the long lasting products.

dENiZEN follows a high standard of quality.

Expertise in jeans industry

Finance and access to international markets

Its highly expertise and intelligent management

Distribution channels and Global sourcing

Weaknesses:

As no discounts are present and products are sold at fixed prices many customers are lost.

dENiZEN does not provide any services like free delivery etc

Lack of control on distribution decisions.

Opportunities:

dENiZEN can do more well in the women section. This section is give less importance as compared to the men section.

The kid’s section 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.

Low manufacturing and production cost in various international markets like Pakistan

Threats:

Saturation of jeans market.

Local competitors in expanded markets

The threats that dENiZEN faces are the competitors. Although it has many competitors in Pakistan like outfitter, focus, stoneage etc

Fast change in the consumer taste.

Economic downfall in many countries like Pakistan.

RECOMMENDATIONS:RECOMMENDATIONS:

From the survey results and the data we collected from various peoples, sites we recommend dENiZEN to work on following areas

First of all the dENiZEN products are considered as the most durable product. Therefore that area is secured. But they have to focus more on their products comfortably and expensiveness

If dENiZEN maintain its prices to some extent the sales volume could be increased to a very large extent. As we saw in the survey that people who are somewhat dissatisfied or who are completely dissatisfied gave the reason of high prices.

The brand name of dENiZEN is now well recognized. We saw in the survey results that most people just to maintain their high status buy dENiZEN products.

dENiZEN pays its maximum attention to the men’s wear. Although the women section is also present but the kid’s sections are still not launched they have to focus on kid’s section in order to fulfill customer’s requirements.

A lot of importance should be given as far as the advertisement is concerned. They should stress on promoting their products especially through TV media

Conclusion

Majority of customers falls under the age group of 15 – 28 years as targeted by dENiZEN. dENiZEN is a leader its price segment and has a high brand value due to Levi’s. dENiZEN is successful in maintaining healthy relations with its customers. Also it is able to attract its targeted customer age group i.e. youth.

Levi's last night launched dENiZEN, the name of its new "global brand" aimed at Asian consumers, with a fashion show in Shanghai. The collection, offering its own logo and styles, is primarily aimed at China but also available in Singapore and South Korea.

Its goal is described as "outfitting the new global citizen for a bright future, supplying jeans and other essentials for an on-the-go, engaged life."

The brand name was selected to evoke "inhabitant" Levi's adds: "living in a place, living on earth, just being. Denim is in the name, the heart of the brand. And dENiZEN has another great meaning too: the idea of someone who frequents a particular place, the idea of belonging to a community of friends and family."

"This is the first brand in our long history to be launched outside the company’s home country," Levi's SVP and dENiZEN head Terence Tsang blogged. "Yes, Shanghai, China, the site of our unveiling last night, is a long way from San Francisco. dENiZEN is also the company’s first brand to have its headquarters outside the United States. My team is based in Hong Kong, the fashion hub of Asia. And dENiZEN is our first brand designed with young Asian consumers in mind – the people who represent 'Asia Rising.'"

The jeans-maker has been touting its Levi's Modern Original collection in the Asia-Pacific region, but announced earlier this year it wanted to create a new brand for China. Now, it will be emphasizing the dENiZEN brand name in the market with about 50 branded stores opening by the end of the year.

"Moving away from its legendary brand is a remarkable move for Levi's, one of most well-recognized names in the world," comments CNNMoney.

As China's clout grows as the world's second biggest economy, Levi's isn't the only company to sublimate its core brand by selling under a new brand aimed at China's consumers. General Motors is bringing Baojun (which means "Treasured Horse") to the market, while Hermès is investing in the Shang Xia brand for China.

The Associated Press spoke with McKinsey consultant Max Magni about the gold rush that's spurring brands to reshape themselves for Chinese consumers. "We have not seen this before to the extent we are seeing this in China. We are dealing with 1 billion people with income per capita growing exponentially," Magni observed. "Chinese consumers are not brand loyal, but they are brand conscious. They are trying something new all the time."

Denizen was launched in the year 2010 by the maker of first jeans i.e. Levi’s.

The idea of launching Denizen was to capture the lower price segment market.

Denizen targeted youth with an age group of 18 – 28 years.

Currently Denizen is working in six countries which are India, China, Pakistan, Mexico, Singapore and USA.

Objectives

To study the customer’s perception about denizen when he or she leaves the store and to find that, on what parameters a customer is evaluating a denizen store.

The research also includes, collecting the data regarding the various problems that a customer is facing with Denizen.

To find out the reasons if a customer is not buying any product from denizen.

To study the demographics of the customer so that it can provide the details regarding the customer group that should be targeted.

To analyse competition that requires evaluating various aspects of the competitors such as price, product range and promotional schemes.

Denizen has only one competitor in price range i.e. Flying Machine.

But, Denizen has an edge over Flying Machine because of higher visibility and brand value.

Customers are switching towards denizen from high priced brands like – Levi’s, Pepe, UCB etc.

The main reasons for the customers to switch to Denizen are price range and brand value of Levi’s.

By far Denizen is offering the best discount offers to the customer.

Conclusion

Majority of customers falls under the age group of 18 – 28 years as targeted by Denizen.

Denizen is a leader its price segment and has a high brand value due to Levi’s.

Denizen is successful in maintaining healthy relations with its customers.

Also it is able to attract its targeted customer age group i.e. youth.

Recommendations

Denizen should come up with some new product ranges in casual wear and the stock should be regulated more frequently so that the customer should always get a feeling of a new store.

Denizen should launch a new range of casual wear with a higher price range to compete with other brands.

Denizen should start some attractive promotional campaigns, like – “Levi’s Unbuttoned” to create awareness about the brand.

The yellow colour display of the summer offer on the store window should be changed to blue as it makes the store almost invisible from outside.

Denizen should come up with the option for customized products on a trial basis. This can prove to be a healthy promotional activity.

Denizen should follow the strategy of related product diversification and should launch a new range of formal wear at lower price segment. This will help the brand to increase its customer base.