levis case summary

7/29/2019 Levis case summary

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Levis Strauss and Co.

Submission 2- Brand Inventory and Questionnaire

Anushree Mishra 27

Juhita Rajyaguru 35

Parin Shah 47

Rashmi Sharma 49

Roshni Shetty 50

History

Levi Strauss, the founder of the company, was a Bavarian immigrant who landed in San Francisco,

California in the year 1849. His brother-in-law ran a dry good business, which later became Levi

Strauss and Co. The California gold rush was in full swing in 1853, while everyday items were in

short supply. Strauss came to know that the gold miners did not have durable pants that could

withstand their rugged lifestyle. Strauss had rough canvas that he intended to use for tents and wagon

covers. Instead, he used it to make into waist overalls. This is when the company was founded, in

1853.Complains of chafing followed, which led to Strauss substituting the material with twilled cotton

cloth from France called serge de nimes (shortened to denim later) and the pants thus made were

named blue jeans. Indigo dye was added to give the pants the blue colour.

The first popular product released by Levis came to be known as 501 Jeans as a result of the lot

number assigned to it when Levis adopted the new inventory system. Sales of Levis 501 Jeans

grew through the 1900s. The popularity rose through the World War II. The post-war, baby boom

generation of the USA were hooked to the product after teen idols appeared on movies and shows

sporting the jeans. Levis 501 jeans became an icon with the brand name becoming synonymous with

jeans.

Between 1970 and 1984, the company diversified to products for men, women and children and

included products like family clothing, corduroy jeans, etc. Acquisitions of various apparel companies

were made leading them to own companies that offered products to lead any lifestyle. Only later, the

company realized that their brand value had actually diluted due to this rapid expansion and they

decided to streamline their product portfolio to stay relevant.

- Levi Strauss & Company

The core Levis was found in 1873, when rivets were added to the jeans pockets to strengthen them.

They also patented the double arcuate pattern sewn into the back hip pocketAmericas first apparel

trademarkand the Two Horse Brand leather patch. May 20, 1873 is when the patent for the rivets

was received, making that date as the official birthday of blue jeans.


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Levi Strauss started the business at the 90 Sacramento Street store in San Francisco. The location was

later moved to 62, 63 & 65 Sacramento Street. The Headquarters of the company are currently located

at Levis Plaza, Embarcadero in San Francisco, California. The company moved into the facility in

1981.

Ownership

As mentioned on the official website of the company, Levi Strauss & Co. is privately owned, held by

the descendants of the family of Levi Strauss. Shares of company stock are not publicly traded. Shares

of Levi Strauss K.K., the companys Japanese affiliate, are publicly traded in Japan.

Levi Strauss left the company to his four nephews and today the company isowned by their

descendants. The family has maintained philanthropic practices started by the founder. Also, they are

not involved in the day-to-day running of the company.

Target Customer Profile

- Primary Target: 12-24 year-olds

- Customer Profile: Independent, Confident, Rebellious, Left-of-centre Attitudes.

As an expansion strategy, Levis started targeting people of all ages by focusing on non-jeans

products as well. These customers varied from infants to those in their 50s.

Levis, later, decided to focus on its core products and streamline its portfolio. The Customer Profile

remained the same, largely.

- Current customer Profile:

Age: 12-24 year-olds (kids and young adults), 25-49 year-olds (adults), males and females. Description: Independent, Confident, Modern, Rebellious, Left-of-centre Attitudes, those who

seek comfort and style.

Product related attributes:

Blue denim Shrink-to-fit cotton fabric Button-fly Two horse patch Small red pocket tag

Brand elements:

Brand name: Being the inventor of denims or jeans as Levisknow them, Levis is a classic brand

etched in American history, and is therefore a strong brand element.

Logo:The famous trademark of Levis, the Red tab has been the official logo since 1936. The Two

Horses logo which preceded it is also widely remembered and recognized.

Slogans:Levis has had memorable slogans over the years such as:

A style for every story.


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Have you ever had a bad time in Levi's? Quality never goes out of style. Levis. Original jeans. Original people. Our models can beat up their models .

Jingles: Some of the famous jingles have been-You walk a little taller in Levis and Fits your body

like a hammer fits a hand.

Brands and Products

Levis offer a broad range of products, including jeans, casual and dress pants, tops, skirts, j ackets,

footwear and related accessories. Across all of brands, pants including jeans, casual pants and

dress pantsrepresented approximately 85%, 85% and 86% of total units sold in each of fiscal years

2009, 2008 and 2007, respectively.

Mens products generated approximately 73%, 75% and 72% of total net sales in each of fiscal years

2009, 2008 and 2007, respectively.

Levis Brand

The Levis brand epitomizes classic American style and effortless cool and is positioned as the

original and definitive jeans brand. Since their inception in 1873, Levis jeans have become one of the

most recognizable garments in the world reflecting the aspirations and earning the loyalty of

people for generations. Consumers around the world instantly recognize the distinctive traits ofLevisjeansthe double arc of stitching, known as the Arcuate Stitching Design, and the red Tab Device, a

fabric tab stitched into the back right pocket. Today, the Levis brand continues to evolve, driven by

its distinctive pioneering and innovative spirit. Range of leading jeans wear and accessories for men,

women and children is available in more than 110 countries, allowing individuals around the world to

express their personal style.

The current Levis product range includes:

Levis Red Tab

These products are the foundation of the brand. They encompass a wide range of jeans and jeanswear offered in a variety of fits, fabrics, finishes, styles and price points intended to appeal to a broad

spectrum of consumers. The line is anchored by the flagship 501 jean, the original and bestselling

five-pocket jean in history. The Red Tab line also incorporates a full range of jeans wear fits and

styles designed specifically for women. Sales of Red Tab products represented the majority of Levis

brand net sales in all three of regions in fiscal years 2009, 2008 and 2007.

Premium Products. In addition to Levis Red Tab premium products available around the world,

Levis offer an expanded range of high-end products. In 2009, Levis consolidated the management of

most premium Levis jeans wear product lines under a new division based in Amsterdam. This

division will oversee the marketing and development of two global product lines: existing Levis

Vintage Clothing line, which showcases most premium products by offering detailed replicas of

historical products, and Levis Made & Crafted, a recently-launched line of premium apparel.


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Levis brand products accounted for approximately 79%, 76% and 73% of total net sales in fiscal

2009, 2008 and 2007, respectively, approximately half of which were generated in Americas region.

Dockers Brand

First introduced in 1986 as an alternative between jeans and dress pants, the Dockers brand is

positioned as the khaki authority and aspires to be the worlds best and most-loved khakis. The

Dockersbrand offers a full range of products rooted in the brands khaki heritage and appropriate for

a wide-range of wearing occasions. Levis seek to renew the appeal of the casual pant category by

dialling up khakis masculinity and swagger and reminding men what they love about the essential

khaki pant. This positioning is reflected in the Wear the Pants campaign launched globally in

December 2009. The brand also offers a complete range of khaki-inspired styles for women with

products designed to flatter her figure and provide versatility for a wide range of wearing occasions.

Dockers brand products accounted for approximately 16%, 18% and 21% of total net sales in fiscal

2009, 2008 and 2007, respectively. Although the substantial majority of these net sales were in the

Americas region, Dockers brand products are sold in more than 50 countries.

Signature by Levi Strauss & Co. Brand seek to extend the style, authenticity and quality for which

company is recognized to more value conscious consumers through Signature by Levi Strauss & Co.

brand. Levis offer products under this brand name through the mass retail channel in the United

States and Canada and value-oriented retailers and franchised stores in Asia Pacific. Levis use these

distribution channels to reach consumers who seek access to high-quality, affordable and fashionable

jeans wear from a company they trust. The product portfolio includes denim jeans, casual pants, tops

and jackets in a variety of fits, fabrics and finishes for men, women and kids.

Signature by Levi Strauss & Co. brand products accounted for approximately 5%, 6% and 6% of total

net sales in fiscal years 2009, 2008 and 2007, respectively. Although a substantial majority of thesesales were in the United States, Signature by Levi Strauss & Co. brand products are sold in seven

additional countries in Americas and Asia Pacific regions.

Communication: Marketing and Promotion

Levis support brands with a diverse mix of marketing initiatives to drive consumer demand.

Levis advertise around the world through a broad mix of media, including television, national

publications, the Internet, cinema, billboards and other outdoor vehicles. Levis use other marketing

vehicles, including event and music sponsorships, product placement in major motion pictures,

television shows, music videos and leading fashion magazines, and alternative marketing techniques,including street-level events and similar targeted viral marketing activities.

Levis root brand messages in globally consistent brand values that reflect the unique attributes of

brands: the Levis brand as the original and definitive jeans brand and the Dockers brand as worlds

best and most loved khaki. Levis then tailor these programs to local markets in order to maximize

relevance and effectiveness.

Levis also maintain the Websites www.levi.com and www.dockers.com which sell products directly

to consumers in the United States and other countries. Levis operates these Websites, as well as

www.levistrausssignature.com, as marketing vehicles to enhance consumer understanding of brands

and help consumers find and buy products.


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This is consistent with strategies of ensuring that brands and products are available where consumers

shop and that product offerings and assortments are appropriately differentiated.

Pricing: Levis Strauss and Co.:

P rice is the one element of the marketing mix that produces revenue; the other elements produce

costs. Prices are perhaps the easiest element of the marketing program to adjust; product features,

channels, and even communications take more time. Price also communicates to the market the

companys intended value positioning of its product or brand

Pricing ObjectivesLevis India:

Objective as far as price is concerned is sales oriented as LEVIS has penetration plans in India. This

can be supported by the following facts:

-15 exclusive stores every year to be opened in India-Eyeing metro malls and state capitals

-To enhance capacity from existing 32 vendors across India

-Expand offerings at low price points of Rs 999-1099.

Levis is accelerating its focus on low-priced street wear product initiative-LEVIS SYKES, which is

expected to drive overall volumes and also penetrate non-metro markets. LEVIS wishes to maintain a

revenue growth rate of around25-30%. The concept of a low-priced street wear sub-brand Sykes is a

India-only strategy for the denim MNC Levi Strauss. Sykes aim: to tap the youth in the age group of

15-19 who have a preference for fast fashion, fads, and experimentation and higher receptivity to

value for money proposition.

Pricing Strategy:

As Levis has different products ranges for different segments the pricing strategy of LEVIS can be

called as both penetrative as well as market growth pricing. The following figure provides us an idea

how LEVIS has segmented the Indian consumer market.

Rs 0 - 999

Rs 1000 to 3000

Rs 3001 to 5000

Rs 5001 to 8000

Value

Value

Trends

Trends


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Recent developments: Pricing (LEVIS STRAUSS &CO Ltd):

In order to succeed its plans in India, LEVIS has been making a number of efforts/developments.

Some of the important changes/developments made by LEVIS in the recent past are as follows:-

Levis India plans to vacate the middle price segment and plans to concentrate on the lower and the

higher end- which is the value offering-will see a further fall in price and start at Rs.900instead of Rs.1,000.- On the other hand the premium segment will see an increase of about15% in average pricing

and increase to about Rs.4, 400.- Reason behind LEVIS vacating the mid price segment attributes to

the minimum growth in the segment & share being taken up by local brands that are more acceptable

to the local conditions (SPYKAR, KILLER etc.)

Positioning:

Levis particular positioning represents the core of its marketing strategy - The position of the

products, created increased differentiation, contributing to the companies market increased

differentiation and consequently led to a strong market power. To better understand the

implementation of the positioning of Levis, below is a little summary of the growth andestablishment ofLevis in the consumers mindset:

In 1930s, the company survived the Great Depression due to increased interest in Western culture:

Jeans were then strategically positioned as being worn by cowboys.

The jeans were later on issued to employees in the defense industry (including veterans) during World

War II.

Post World War II, veterans that went to college wore Levis Post World War II, increasing its

popularity, and became more and more recognized by the youth.

. The social status of veterans, who were at the time viewed as heroes also had a great impact on the

rise of recognition/popularity of the jeans, as they wore them. With time, jeans were shown to be

suitable for casual wear, rather than work.

During the Baby Boom era, Levis strategically targeted younger consumers and positioned their

product as cool. In the minds ofthe youth

Celebrity endorsements started taking an important role in the rise of brand recognition. Early movie

starts were endorsed by Levis as they associated themselves with the Levis products. Consequently

consumer demand shifted from durability of jeans to its fashion.

Culturally, jeans became a symbol of youth and rebellion. In 1960s, student protesters wore jeans as

uniforms. Jeans became so associated with the youth that it almost became part of their identity.

The Levis firm positioned its products with changing times and demands, keeping existing customers

and capturing new markets. Increases in sales ultimately increased along with profits and most

importantly strong brand recognition. Their positioning had proven to be very successful as L evis

became the n1 brand associated with fashionable and good quality jeans.

In recent times the Levis positioning differs between countries and markets. For eg. In America and

much of Europe the emphasis is on jeans as casual attire. In contrast a Russian wears to indicate social

fashion awareness and high status (Jeanet 1998).


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For adolescents and younger adults (14 to 24 yrs) who want casual attire, Engineered Jeans by Levis

provide fit and functional status, unlike other competitors like Wrangler and Pepe. Levis worldwide

positioning by country can be seen as follows.

Levis POPs

It offers a variety of jeans for men and women of various sizes like all of its othercompetitors.

It has a reliable brand name much like its close competitors like VF Corp (Lee, Wrangler),CK, Tommy Hilfiger etc.

Levis PODs

It is the pioneer in the denims market Levis captures the high end segment of consumers and emphasizes more on the age group of

13-24 (youngsters), although it has its product range for people above 30 years of age.

Levis follows the strategy of a mix of standardization and localization in its products whichhas enabled it to become a renowned brand worldwide.

Levis spends a huge amount of money on R&D Levis works closely with its suppliers (improving working conditions in their supplier

factories) to ensure the quality of its products.

Levis recently launched jeans specifically designed for commuter biking.


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Profile of No.1 Competitor

V.F. Corporation designs and manufactures, or sources from independent contractors various apparel

and footwear products primarily in the United States and Europe. The company offers apparel,

footwear, outdoor gear, skateboard-inspired and surf-inspired footwear, backpacks, luggage, handbags

and accessories, outdoor apparel, travel accessories, and womens active wear primarily under theVans, The North Face, Timberland, SmartWool, JanSport, Eastpak, Kipling, Napapijri, Reef, Eagle

Creek, and lucy brands; and denim and casual bottoms, and tops principally under the Wrangler, Lee,

Riders, Rustler, and by Wrangler brands.

It also provides occupational, protective occupational, athletic, licensed athletic, and licensed apparel

primarily under the Red Kap, Bulwark, Majestic, MLB, NFL, and Harley-Davidson brands; mens

fashion sportswear, denim bottoms, sleepwear, and underwear, as well as handbags, luggage,

backpacks, and accessories principally under the Nautica and Kipling brands; and premium denim and

casual bottoms, sportswear, accessories, luxury mens apparel and footwear, premium womens

sportswear, and accessories primarily under the 7 For All Mankind, John Varvatos, Splendid, and Ella

Moss brands.

The company sells its products to specialty stores, department stores, national chains, and mass

merchants primarily through its sales force, independent sales agents, and distributors. V.F.

Corporation was founded in 1899 and is headquartered in Greensboro, North Carolina.Some 80% of

V.F. products are sold through department and specialty stores, mass merchants, and discounters.

Today, VF is a $9 billion apparel and footwear powerhouse.

CBBE Questionnaire

Salience

1. Which is the first brand that comes to your mind when somebody mentions denims?

a) Dieselb) Levisc) Leed) Wranglere) Any other _________________________

2. Which of the following products of Levis are you aware of?a) Levis Jeansb) Levis Denim Shirtsc) Levis Beltsd) Levis Footweare) Any more you are aware of ____________

3. Have you ever used Levis Jeans?

a) Yesb) No

4. If yes, how often do you purchase them?


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a) Once a monthb) Once in 3-4 monthsc) Whenever your old pair becomes unusable

Performance

1. How would you rate Levis Jeans in terms of its functions of-

i. comfort

ii. style

(1Poor 2Fair 3Good 4Very good 5Excellent)

2. After using the brand Levis once, would you continue buying products from Levis or have you

switched to some other brand?

a) Continued with Levisb) Switched to some other brand

3. If switched, then what are the reasons for it?

a) You do not see any brand differentiation i.e. you perceive all brands to be providing similarproducts

b) You feel that other brands are better than Levisc) Any other reason _____________________

4. How do you rate this brand in terms of the variety it offers in terms of:

i. sizes

ii. colours

iii. patterns-Levis 501, Levis 511 etc.?(1Poor 2Fair 3Good 4Very good 5Excellent)

5. Compared to other brands in this category, how do you perceive the prices of Levis?

a) Lower than other brandsb) About the same as other brandsc) Higher than other brands

III: Imagery

1. How well do the following words describe the Levis brand?

(1- Strongly disagree to 5 Strongly Agree)

Western - ______

Blue collar - ______

Rugged - ______

Strong Masculine - ______

Classic - ______

Independent - ______

Comfortable - ______

Durable - ______


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2. How do you perceive the people who use Levis?

1Negatively 2 -somewhat negatively 3Neutral 4somewhat positively 5Positively

3. To what extent does thinking of Levis bring back good memories?

1Not at all 2slightly 3moderately 4Very much 5Extremely

4. Is this a brand you can use in different situations?

a) Yesb) No

IV. Judgements

1. What is your assessment of the product quality of Levis products?(Quality)

1Poor 2Fair 3Good 4Very good 5Excellent

2. How much do you trust the makers of Levis? (Credibility)


3. To what extent do makers of Levis understand your needs? (Credibility)

1Poor 2Fair 3Good 4Very good 5Excellent

4. How likely would you be to recommend this brand to the others? (Consideration)

1Not at all likely 2 somewhat likely 3 moderately likely 4 Very much likely 5 Extremely

likely

5. How superior is Levis to other brands? (Superiority)


V. Feelings

1. What feelings does Levis evoke? (Eg. Security, warmth, rebel etc)

Ans ) ____________________________________________________________

VI. Resonance

(Please rate on a scale of 1 to 5 with)

1- Strongly Disagree 2- Disagree 3- Indifferent 4-Agree 5- Strongly Agree

Loyalty:

1. I consider myself loyal to this brand - _____

2. I buy as much of this brand as I can - _____

3. I would go out of my way to use this brand - _____

Attachment:


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1. I would really miss Levis if it went away. - _____

2. This brand is more than a product to me. - _____

Community:

1. I really identify with the people who use Levis. - _____

2. This is a brand used by people like me. - _____

Engagement:

1. I really like to talk about Levis to others. - ______

2. I would be interested in merchandise with Levis name on it. - ______3. I like to visit the website of Levis. - ______

4. Compared to other people, I closely like to follow news about Levis - ______

levis case summary

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