Levis Strauss & Co MM Project
Levis Strauss & Co MM Project
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 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 sizes and 20 finish fabrics. From the early 1960s through the mid 1970s, Levi Strauss experienced significant growth in its business as the more casual look of the 1960s and 1970s ushered in the "blue jeans craze" and served as a catalyst for the brand. Levi's, under the leadership of Walter Haas Jr., Peter Haas, Ed Combs, and Mel Bacharach, expanded the firm's clothing line by adding new fashions and models, including stonewashed jeans through the acquisition of Great Western Garment Co. (GWG), a Canadian clothing manufacturer, and introducing Permanent Press trousers under the Staprest name. The company experienced rapid expansion of its manufacturing capacity from 16 plants to more than 63 plants in the United States from 1964 to 1974 and 25 overseas. The use of "pay for performance" manufacturing at the sewing machine operator level up. 2004 saw a sharp decline of GWG in the face of global outsourcing, so the company was closed and the Edmonton manufacturing plant shut down. The Dockers brand, launched in 1986 which is sold largely through department store chains, helped the company grow through the mid-1990s, as denim sales began to fade. Dockers were introduced into Europe in 1993. Levi Strauss attempted to sell the Dockers division in 2004 to relieve part of the company's $2 billion outstanding debt. Launched in 2003, Levi Strauss Signature features jeans wear and casual wear. In November 2007, Levi's released a mobile phone in co-operation with Mode Labs. Many of the phone's cosmetic attributes are customisable at the point of purchase.
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2. BRANDS:
The products of Levi Strauss & Co are sold under three 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, 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.
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3. MARKETING MIX:
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 PLACE Product variety Channels Quality Coverage Design Assortments Features Locations Brand name Inventories Packaging Sizes Services Warranties Returns
PROMOTION Sales promotion Advertisements Sales Force Public relations Direct marketing
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3.1 PRODUCT:
Product means set of tangible and intangible attributes which may include packaging, colour, 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.
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 a n d o f t e n i m i t a t e d c l o t h i n g p r o d u c t s i n t h e h i s t o r y 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 favourite fits and styles in our Red Tab and Levi's Premium collections.
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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 f o r m e n ' s p a n t s a n d t h e s h i f t t o c a s u a l c l o t h i n g i n t h e w o r k p l a c e . Dockers Khakis quickly 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 lineoffers fashio nable tops, dress and casual pants and a full rangeof accessories desig ned to fit a variety of different bodyt y p e s a n d s i z e s . T o d a y , t h e D o c k e r s b r a n d h a s expanded to more than 50 countries i n every region of thew o r l d w i t h a c o m p l e t e a s s o r t m e n t o f s t y l i s h a n d innovative products including full line of tops, foot wears, accessories, for a broad range of consumers. LEVIS STRASS SIGNATURE: The Levi Strauss Signature brand was launched in 2003 exclusively for consumers who shop in the mass channel. The brand gives valueconscious 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
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 5 | Page
Levis jeans have been present at nearly every pivotal moment in history and culture for the past 150 years.
Shirts
Cotton Pants
Sunglasses
Wallets
Lady Bag
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Jacket
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. 8 | Page
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.
3.2 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: Their products are sold at listed price, which are settled by the Levis Company (Singapore). There is no discount to offer. Credit Sales: They also deal with credit sales, but they dont overcharges to the customers, we pay it our self to the bank (3 %). P roducts are only sold for cash or on credit cards Discount: They dont give the discount to their customers, even to the employees of the Levis. Their 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
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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 Cambridge Their 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.
3.3 PLACE:
Placement objectives:
To equalize the demand and supply of products at all places. To provide desired products at proper place. To full fill the requirements of every locality according to the taste of the people. To increase the brand equity by reaching every corner of the world.
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Channels Strategy: 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:They sell our product in 110 countries,55000-plus retail locations and 1500 brand dedicated stores. 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: 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. B a h r a i n , I s r a e l , J o r d a n , K u w a i t , O m a n , Q a t a r , S a u d i A r a b i a , U n i t e d A r a b E m i r a t e s A n g o l a , B o t s w a n a , Mozambique, Namibia , South Africa. Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela. 11 | P a g e
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.
D) 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.
Sales Promotions Advertising:The types of advertising used by LEVIS are: 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 12 | P a g e
Television & Radio: Advertisements of Levi Strauss &Co. are very innovative and eyecatching. 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 d u e t o i t s g r a n d b r a n d e q u i t y , i t h a s b e c o m e a benchmark for all the others to follow. The newspaper gives 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 website 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. Level of Distribution Intensity: Levis is using selective but intensive distribution level for the distribution of its products.
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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. GUIDING PRINCIPLES: 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. ISSUES: These principles are applied to two interrelated issues: Preventing the Spread of HIV/AIDS In 1985 the Levi Strauss Foundation became the first U.S. corporate foundation to address this epidemic, and has since contributed more than $26 million to organizations in more than 40 countries. The Foundation and company-supported programs seek to prevent the spread of HIV/AIDS. Increasing Economic Development and Education Opportunities To alleviate poverty, individuals must have access to resources and possess the skills to acquire and manage financial assets -- yet youth and women continue to struggle against social norms and financial institutions that limit this type of access and discourage education and training. Focusing specifically on indigent women and youth (age 10 to 25) For Example 1. Philanthropy includes a focus on strengthening workers' rights and ultimately improving working and living conditions in 14 | P a g e
communities where third-party contractors make LS&CO. products. The Levi Strauss Foundation provides innovative "sourcing" grants to local, regional or global non profit organizations 2.LS & Co. s commitment to equal employment opportunity and diversity pre-dates today's programs and began in the 1940s when factories were desegregated in California. 3. For the past four years, LS &Co has been ranked as one of "America's 50 Best Companies for Minorities". 4. In 1991, LS &Co became the first worldwide company to establish a comprehensive ethical code of conduct for manufacturing and finishing contractors working with the company. 5. In 2003, LS &Co received the Corporate Philanthropy Award for our leadership in giving and volunteering in San Francisco area. 6. In 2000, LS &Co inaugurated Volunteer Day at San Francisco headquarters and has since expanded it beyond the United States and Canada to include sites throughout Latin America and Asia. In 2004, employees volunteered more than 50,000 hours to charitable organizations around the world and provided $1 million in philanthropic support to local non profit groups 7. In 1998, LS &Co received the U.S. President's Ron Brown A w a r d f o r C o r p o r a t e L e a d e r s h i p f o r outstanding achievements in employee and community relations. LS &Co was recognized for creating Project Change, an initiative of the Levi Strauss Foundation that combats institutional racism. 8. In 1968, LS &Co pioneered an employee volunteer effort called "Community Involvement Teams" or CITs. There are now 78 CITs worldwide. 9. LS &Co has played a leadership role in educational programs and policies regarding AIDS in the workplace 10. LS &Co have made more than $27 million in grants for AIDS care and prevention. in the last two decades and have received numerous awards and recognition for our efforts to combat the HIV epidemic Funding: The philanthropic funding is divided into two categories: The Levi Strauss Foundation 15 | P a g e
The Foundation is an independent legal entity that provides grants to community-based organizations working to create meaningful social change. The Levi Strauss Foundation funds programs worldwide where LS&CO. has a business presence and gave approximately $10 million in 2004. The Foundation also funds disaster relief efforts, makes charitable donations to organizations where employees volunteer, matches cash donations by employees to local charitable organizations, provides grants to community organizations located in LS&CO.'s sourcing communities, and funds college scholarships for the dependents of LS&CO. employees. Employee Community Involvement Our employees are a big part of how we give back to our communities we invest in what is important to them.W e e n c o u r a g e e m p l o y e e s g l o b a l l y t o g i v e b a c k t o t h e i r c o m m u n i t i e s t h r o u g h e m p l o y e e - l e d C o m m u n i t y Involvement Teams and through the sponsorship of an annual volunteer day.
The Levi Strauss Co. & Foundation: The Levi Strauss Co. & Foundation provides grants to local, regional or global non profit organizations. The grant areas are divided into two: 1) Core Grants The core grant includes the following: Corporate Responsibility Economic & Educational Opportunities HIV / AIDS . Social
2) Non-Core Grants Animals Arts & Culture Civic Disaster Relief Environment Food, Shelter & Emergencies Health & Human Services Holiday Grants Recreation & Athletics Youth Empowerment.
4. REFERENCE:
www.levistrauss.com http://levi.in www.wikipedia.org
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