JULY 2012

LEVIS (BRAND RESEARCH)

SUBMITTED BY: RISHI RAJ REGISTRATION NO511137357 ROLL NO-MBASMU0043 SEM-4th SUB-MARKETING

JULY 2012

ACKNOWLEDGEMENT

I am Rishi Raj student of ZAKIR HUSAIN INSTITUTE MBA 4 SEM my subject is marketing .I am very thankful to my teacher to given me such good and Knowledgeable project .By doing this project I can Understand many things about company and there marketing system .My project company name is LEVIS and it is one of the world famous brand.I complete My project with help of my inter net ,friends ,book and also with the help of my teachers.

JULY 2012

BONAFIDE CERTIFICATE
Certified that this project LEVIS BRAND study is the bonafide work of ..RISHI RAJ..who carried out the project work under my supervision .

SIGNATURE
HEAD OF THE DEPARTMENT

SIGNATURE
FACULTY IN CHARGE

DEPARTMENT NAME- MARKETING ZAKIR HUSAIN INSTITUTE BAILY ROAD PATNA

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 the position the company for future

Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions: Levi Strauss, North America (LSNA) Based in the San Francisco headquarters Levi Strauss Europe (LSE) Based in Brussels Asia Pacific Division (APD) Based in 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 Pakistan. COUNTRIES: Levi's brand of products are sold in 49 countries, Dockers brand in 31 countries and 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 Africa: Mozambique, Namibia and South Africa. Latin America: Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela

VALUES: 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 define who we are. They underlie how we compete in the marketplace and how we behave.

MISSION STATEMENT 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

ASPIRATION STATEMENT : 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.

VISION STATEMENT:
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.

HISTORY
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 halfbrothers 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.

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 considerablechange over time. The readings in this section exemplify areas of rapid change.

BASIS OF MARKET SEGMENTATION Demographic Segmentation geographic Segmentation Psychographic Segmentation Behavioural 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 Ta r get 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. Company is promoting its products effectively within segments by print media as well as electronic media, e.g. Newspapers, Signboards, Television commercials, Internet, etc. Company is providing their customers with stylish better quality and different product 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 multiadvertisement. In Pakistan 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

PRODUCTS: 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. BRANDS: 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. Target market 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. LEVIS: 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.

DOCKERS: 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

LEVIS STRAUSS SIGNATURE: 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.
PRODUCT ATTRIBUTES: 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 Colour Size

Levis brand has mainly three broad categories :

MENS WEAR WOMENS WEAR ACCESSORIES

Collections of Levis:
RED TAB Casual and normal WORKERS Semi formal and casual look SYKES Sporty look 501 Cowboy look RED LOOP Casual, costly imported denim fabric The Range of LEVIS Incorporates components like: Style Design Price Colors Fabric

VARIETY: 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 : JEANS Levis jeans have been present at nearly every pivotal moment in history and culture for the past 150 years. SHIRTS COTTON PANTS ACCESSORIES : BELTS SUNGLASSES WALLETS LADYS BAGS JACKETS SHOES

FEATURES: 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. COMFORT: 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. DURABILITY: 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. STYLE: 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.

LEVIS PORTFOLIO ANALYSIS: Levis corporate strategy involves a number of businesses, so managers can manage this collection or portfolio of businesses by using a corporate portfolio matrix. BCG MATRIX: A strategy tool that guides resource allocation decisions on the basis of market share and growth rate of SBUs. Boston Consulting Group introduced the idea of BCG matrix that an organizations businesses could be evaluated and plotted using a 2*2 matrix to identify which ones offered high potential and which ones were a drain on organizational resources. HORIZONTAL AXIS: The horizontal axis represents market share which is evaluated as low or high. VERTICAL AXIS: The vertical axis indicates anticipated market growth which is also evaluated as low or high.

PRICE 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 Discount: We dont give the discount to our customers, even to the employees of the Levis. Our prices are fixed. 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 Competitors: 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 Camb ridge 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:Channels of Distribution: LEVIS distributes JEANS by the Channel Members that is through retailer and wholesalers. Retailers: HKB: Defence, Liberty Market , Mall Market Raja Sahib, Link Road Pace, Gulberg Sheikh Innayat Ullah, Anarkal

Strate gy: 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. Location:Location: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: COUNTIRES: COUNTIRES: 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.

STRATEGIES:
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:

Promotion objectives:
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

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 Pakistan, therefore, the promotional strategy is based on persuading of prospective buyers Levis uses the following promotional strategies to promote its product. Personal selling 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. 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 Origina

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 Internet.: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:
Levis holds a very big sales department as it is working in many countries. Level of Distribution Intensity: Levis is using selective but intensive distribution level for the distribution of its products . For example in Pakistan Levis has opened its outlets, sales offices and sales branches in major cities like Lahore, Islamabad and Karachi. 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

SWOT Anal ysis: Stren gths : 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

The main deciding factors for Levis store for

merchandising policy are:

Colour of the month
Space in store or store capacity How much buffer stock to carry General trends in the market place Categories of performance Category life cycle Sales forecast Daily Sales Report (DSR) Moving merchandise and stock report

Promoti on:

Mumbai: It seemed like a clever marketing gimmick when Levi Strauss (India) Pvt. Ltd offered an instalment plan in September for people buying its jeans and other products.

The American jeans and casual wear manufacturer is launching its brand Levi's 501 in India, and Akshay kumar will be seen fronting its advertising campaign, which will be released by the end of the month. The ads have been shot in the US and will feature supermodel Sara alongside Akshay. The campaign is based on the theme of Live Unbuttoned and from the look of this teaser photo, it seems set to be a scorcher

As a celebration of its 15 years run in India, denimwear brand Levi's announced its latest initiative for the young consumers as - 'Change your World' campaign. The brand will offer fellowships of Rs 1 lakh each to 15 passionate youngsters who want to follow their dreams. Explaining the concept behind this motivational campaign, Shyam Sukhramani, Marketing Director, The Levi's Brand India, commented, "When you are young, you just want to go out and do your own thing. Similarly, when a consumer wears a pair of Levi's jeans, he or she dons a certain spirit. We are here to celebrate that coming of age. Our target audience is 15 to 30 years."

Keeping in mind the net savvy generation, the online medium will be utilised as a strong platform for the campaign that will run till 9th June. Also, since the rock band scenario in India is rapidly evolving, the brand is exploring musical possibilities to connect better with the modern consumers. Sukhramani further elucidates, "Levi's has been the originator of jeans and the brand has been closely asociated with music for over 80 years now. With the 'Change your World' campaign we will salute the aspiring youth bands that create original music. They can upload their music on our website for free. Based on the number of downloads we will identify the most popular rock band and give them the opportunity to cut a music video that will also feature our brand ambassador Priyanka Chopra."