Vous êtes sur la page 1sur 33

Submited by : Sanket Bhatia (11bsp0886) Section-F, IBS MUMBAI

Executive Summary Introduction History

Market segmentation, targeting and positioning

Marketing mix Product Price Place Promotion SWOT analysis Conclusions

A successful project can never be prepared by the singular efforts but I also demands the help and guardianship of some conversant person who under pin actively or passively in the completion of a successful project. My project on LEVIS (brand of levi strauss & co.) would not have taken the present form in the absence of the invaluable guidance, inspiration and cooperation from many people. I take this opportunity to express our deep gratitude to Prof. AJIT PATIL, IBS school of management, MUMBAI who has given me the opportunity to present this project.. I M deeply indebted to the Director,faculty members of our institute, IBS school of management, MUMBAI for helping us with their support and guidance that help a lot in successfully completing this project. Finally I express my cordial thanks to our parents, friends for their great support , guidance and love throughout the project preparation.

The purpose and scope of document is to study, analyze and understand the business and marketing practices of Levi strauss & co. In order to achieve this objective, two stages were identified Data collection stage and the Analysis stage. The first stage includes the data collected from various sources regarding the following: 1. The Origin, History of the company, its growth. 2. Information about the 4 Ps of marketing Product, Price, Place and distribution. The analysis stage includes understanding the implications and relevance of the data collected and drawing conclusions about the companys business and marketing decisions. LEVIAS (levi strauss & co) Limited is an out-an-out Us based firm in the apperal industry that manufactures and markets a wide spectrum of clothes as well as shoes & goggles. Though it had a corporate position of a focused cloth industry by catering to customers in Indian market in the past, it has been systematically repositioning itself in the recent years to become a global player by entering into a number of other country markets.

INTRODUCTION: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 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 sizes and 20 finish fabrics. With 2007 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.

BRANDS:The products of Levi Strauss & Co are sold under three brands:

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 brand, which pioneered the movement toward business casual, has led the U.S. khaki category since the brand's 1986 launch, and is 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.

Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions:

Levi Strauss, North America (LSNA): Levi Strauss Europe (LSE): Asia Pacific Division (APD):

Based in the San Francisco headquarters

Based in the Brussels Based in the Singapore

Levi Strauss & Co.'s Asia Pacific Division is comprised of subsidiary businesses, licensees and distributors throughout Asia Pacific, Middle East, Africa and Latin America. The Division sources, manufactures and markets Levi's, Dockers, and Levi Strauss Signature products through 14 affiliates. The company employs approximately 2,500 talented people working together to ensure that the apparel brands are leaders in this part of the world. The division is comprised of both wholly owned-and-operated businesses, licensees and distributors throughout Asia and the Pacific including India.

Levi's brand of products are sold in 49 countries, Dockers brand in 31 countries and our Levi Strauss Signature brand in 4 countries:

Asia Pacific:
Australia, Bangladesh, Brunei, China, Guam, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Sri Lanka, Taiwan and Thailand.

Middle East:
Bahrain, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates


Angola, Botswana, Mozambique, Namibia and South Africa.

Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela

Levi Strauss & Co. has four major core values. These are -Empathy -Originality -Integrity -Courage Levi Strauss & Co. says, Our corporate values -- empathy, originality, integrity and courage -- are the foundation of our company and define who we are. They underlie how we compete in the marketplace and how we behave.

The mission of Levis Strauss & Co. is to sustain responsible commercial; success as a global marketing company of branded apparel. We must balance goals of superior profitability and return on investment, leadership market positions, and superior products and services. We will conduct our business ethically and demonstrate leader ship in satisfying our responsibilities to our communities and to society. Our work environment will be safe and productive and characterized by fair treatment, teamwork, open communications, personal accountability and opportunities for growth and development.

They want a company that make them proud of and committed to, where all employees have an opportunity to contribute, learn, grow and advanced based on merit, not politics or background. They want their people to feel respected, treated fairly, listened to and involved. Above all, they want satisfaction from accomplishments and friendships, balanced personal and professional lives, and to have fun in our endeavors.

When LS & Co. describe the future of Levi they are talking about a building on the foundation they have inherited: affirming best of their Companys tradition, closing gaps that may exist between principles and practices and updating some of their values to reflect contemporary circumstances.

Today, the Levis brand is an authentic American icon, known the world over. Levi Strauss started it 150 years ago & forever earned a place in history. In 1847, Levi Strauss, his two sisters & mother sailed for America where they joined half-brothers Jonas & Louis in New York. Levi joined their dry goods business. In 1853, Levi sailed to San Francisco to join dry goods business and started selling clothing, bedding & linen to small stores in California. In 1902, Levi died and his two nephews inherited the business. In 1910s, LS&CO. received Blue Ribbon highest award for waist overalls in Panama. One-piece garment for women was introduced to work and play. In 1930s, the Great Depression stroke & demand for Levis jeans, shirts and jackets declined. . In 1991, the first original Levis store was opened in United States. In 1994, Dockers brand was introduced in Europe. It launched its first website in 1995.In 1996; it introduced its Slates brand, a new style for men wearing. In 1999, classic 5 pocket pants were reinvented. In 2000, LS&CO. introduced Levis engineered jeans TM, the reinvention of jeans for the new generation. It named No. 2 for Americas best companies for minorities. In 2003, it celebrated its 150th anniversary of its founding and 130th anniversary of invention of blue jeans.

Market Segmentation, Targeting and Segmentation:

Advertising professionals realize that the heart of any campaign is the product and the position it holds in people's minds. Products and their brand names are newsmakers themselves. Understanding the complexities of a brand identity and its position is no easy task. One of the most controversial areas of product concepts is the brand extension. A new product gets to share the name of an older, established brand. Early theorizing suggested that brand extensions would sap market clout from the established product, but these fears proved groundless. Today brand extensions occur not only within the company, but companies are licensing their brand names to all kinds of products in the hope of increasing brand awareness.


Like other successful companies, Levis also has realized that the marketing environment presents a never-ending series of opportunities and threats. The major responsibility for identifying significant changes in the macro environment falls to a companys marketers. More than any other group in the company, the marketing managers of Levis are the trend trackers and opportunity seekers. Many opportunities are found by identifying trends (directions or sequences of events that have some momentum and durability) and mega trends (major social, economic, political and technological changes that have long-lasting influence). Within the rapidly changing global picture, the marketers of Levis are monitoring the following six major Environmental Forces: Demographic Environment

Economic Environment Natural Environment Technological Environment Political-Legal Environment Social-Cultural Environment

Market Segmentation:
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.


Demographic Segmentation Geographic Segmentation Psychographic Segmentation Behavioral Segmentation

Target Market:
501 JEANS targets its market by evaluating the wants of customers. Mostly Levis targets its market among the following classes: Upper Class Upper Middle Class

Target Market Strategy:

Target market strategy adopted by Levis is basically on having long-term relations with their customers and to provide them with better product.

Benefits of Segmentation:
Levis has got customer oriented approach by segmentation.

well as electronic media, e.g. Newspapers, Signboards, Television commercials, Internet, etc.

keeping in view its cost.

Conditions for effective segmentation:

501 JEANS is fulfilling the conditions for effective segmentation. Segments are strong enough to make profit. Segments of company are measurable.

Limitation of Segmentation:
Because of segmentation, Levis faces some limitations. Lack of awareness in middle class. Company has to pay extra cost for multi-advertisement. In India they have to face several Cultural Barriers.

Marketing Research:
According to Levis marketing logistic manager, their company conducts a research to know Whats in trend? What are the needs of customers?

Sources of Data:
Levis gathers data from both primary and secondary sources. Secondary data is already available in the company. To gather primary data, they organize radio shows and music concerts by sponsoring.

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. Note that the four Ps represent the sellers view of the marketing tools available for influencing buyers.

Marketing mix

Product Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns

Place Channels Coverage Assortments Locations Inventory Transport Promotion Sales promotion Advertising Sales force Public relations Direct marketing

Target market

Prices List price Discounts Allowances Payment period Credit terms

Product means set of tangible and intangible attributes which may include packaging, color, price, quality and brand plus the sellers services and reputation. A product may be a place, service, good or promotion.

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 worlds largest quality products. LS & CO. is basically divided into 3 sub brands i.e. Levis, Dockers and Levis Strauss Signature. All the three brands are providing different quality products.

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 Levis brand continues to define jeans wear with widest range of products available from quintessential classics, such as the famous Levi's501 Original jean to favorite fits and styles in our Red Tab and Levi's Premium collections.

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


The Levi Strauss Signature brand was launched in 2003 exclusively for consumers who shop in the mass channel. The brand gives value-conscious consumers access to high-quality, affordable and fashionable jeans wear from a company and name they trust. The Levi Strauss Signature brand includes a collection of denim and non-denim pants, shirts, skirts and jackets for men, women and children all designed with the high quality.

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 of LS&CO.S products Variety Features Design Color Size

Levis products today are perceived by many as a symbol of youth, freedom, confidence, individualism, independence & comfort. LS & CO. provides a wide variety of products including :

Levis jeans have been present at nearly every pivotal moment in history and culture for the past 150 years.




Business Casual shoes and Casual shoes are offered by Dockers both for men and for women

Features are competitive tools that differentiate the companys products from its competitors products. Following are some of the main and distinctive features of Levis products.

Levis jeans and other products are comfortable enough to be worn even at the times of protest, war, cultural revolution, relative peace and pure fun.

The two figures on the patch of Levis jeans with whips in hand pulling in opposite directions, yet the jeans remain intact; symbolize the strength and durability of the Patent riveted clothing.


Clothing means more than just fabric, thread and rivets. To clothe oneself means to put on something that symbolizes who you are. Levis jeans are available in different styles for men and women.

It can be simply defined as: The currency value charged to a Client by the company for a product or service. Is one of the most important elements of the marketing mix, as it is the only mix, which generates a turnover for the organization. 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:
Our all products are sold at listed price, which are settled by the Levis Company (Singapore). There is no discount to offer.

Credit Sales:
We also deal with credit sales, but we dont overcharges to the customers, we pay it our self to the bank (3 %). Products are only sold for cash or on credit cards

We dont give the discount to our customers, even to the employees of the Levis. Our prices are fixed.

Payment Period & Credit Terms:

Payment Period & Credit Terms are settled by the company.

Price Determination:
During the determination of the price company not considered the competitors, but the standard that is used is considered . Our price is influenced by the following factors: Cost of the product Affordable for the target market Demand of the product Uniqueness and innovative features of the products

We are much proud to say with surety that our products completely satisfy our consumers, thats why we dont face much competition in our business. But yet there are some competitors e.g. Pepe Jeans Leeds (US Apparels) GAAP Jeans Cambridge Our prices are not influenced by the competitors. Such a stuff, design and fashion which dont have the enough sales are recall back to the company. Again company issues this stuff to their own outlets for sale at discount prices at 14 August.

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 of Distribution: LEVIS distributes JEANS by the Channel Members that is through retailer and wholesalers. Retailers: HKB: Defence, Liberty Market , Mall Market

Levis 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.


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:

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.

LS & CO. placed its products according to following strategies.Placing according to Class and Attributes: LS & CO. Positioned its products according to different classes and genders.

Placing according to Competitors:

LS & CO. Keep in mind the price and quality of the products and try to make its products better.

Placing according to Price and Quality:

LS & CO. introduces best quality at different prices to its clients.

Placing according to Technology:LS & CO. has tried to build its image as an innovator by coming in Pakistan with their Jeans having new and latest style and look


Promotion objectives:
o o o o o

To inform, persuade and remind the potential customers about its products Increase awareness and build primary demand To build strong brand equity. Build Companys 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 levis is done by creating public relations. The sales promotion of LEVIS targets the end consumers. Since the Levis JEANS are in growth stage in India, therefore, the promotional strategy is based on persuading of prospective buyers.

Levis 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.

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 companys image by saying Many Copy the Red Tab No One can copy the Original

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 a 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

Levis provides up-to-date information to their customers through electronic media i.e. from their websit

Billboards & banners:Billboards and banners are also used for the advertisement purpose.

Sales force:
Levis holds a very big sales department as it is working in many countries.

Sales Offices and Sales Branches:

Sales offices for Levis act as a display center for their Products from where the customers can get information about latest designs and up to date fashion introduced. While the actual sale of the products take place at the sales outlet of the company.

Public relations:
The sales promotion of LEVIS also includes such activities as event sponsorship. Levi Strauss & Co. says ,

Our corporate values enable our vision of the future and reflect the legacy of our founder, Levi Strauss, who devoted substantial time and resources to charitable and philanthropic activities.

There are three guiding principles present behind the global giving programs :-The first is a belief in empowerment - the right of women and youth to identify their needs and to participate in solving problems that affect them. -The second is a resolve to address social biases and their impact on youth and women whether due to racism, xenophobia, sexism, homophobia or HIV/AIDS status. -The third is a commitment to work collaboratively with other funders and to encourage joint efforts by our grantees.

SWOT Analysis:

Strengths :
Levis enjoys high brand equity. People all around the world recognize the brand name. Levis products are unique and innovative in the style. A lot of variety is offered by Levis ranging from sunglasses to skirts and shirts. The products are renowned and are considered as the most durable i.e. the long lasting products. Levis follows a high standard of quality. Weakness: Levis products are considered as very expensive. Therefore a large percentage of people are reluctant to buy the products. As no discounts are present and products are sold at fixed prices many customers are lost. Levis does not provide any services like free delivery etc. Opportunities: Levis can do more well in the women section. This section is give less importance as compared to the men section.

The kids 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: The threats that Levis faces are the competitors. Although it does not have any competitor in India but it does have some competitors at the global level. By the help of above data we can conclude that Levi Strauss & Co. is no doubt a benchmark for the jeans makers all around the world

Reference: www.google.co.in www.levi.in www.wikipedia.com