levis strauss & co mm project

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1. 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. 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 stone-washed jeans through the acquisition of Great Western Garment Co. (GWG), a Canadian clothing manufacturer, and introducing Permanent Press trousers under the Sta-prest 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. 1 | Page

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Page 1: Levis strauss & co mm project

1. 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 ca sua l pan t s ma rke t s . Today , t he Lev i ' s® t r ademark i s one o f t he mos t r e cogn i zed i n t he wor ld and 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 stone-washed jeans through the acquisition of Great  Western Garment Co. (GWG), a Canadian clothing manufacturer, and introducing Permanent Press trousers under the Sta-prest 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 PRICE PROMOTION PLACE

Product variety          List price                        Sales promotion                    Channels Quality                      Discounts                  Advertisements           CoverageDesign                            Allowances                   Sales Force                              AssortmentsFeatures                   Payment period           Public relations                      LocationsBrand name              Credit terms              Direct marketing           InventoriesPackaging               SizesServicesWarrantiesReturns

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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 seller’s 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 world’s largest quality products.  

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

LEVI’S®

Invented   in   1873,   Levi's®   jeans   are   the   original,   authentic   jeans.   They   are   the  most successful,  widely recognized and  often   im i ta ted   c lo th ing  p roduc t s   i n   the  h i s to r y  o f   appare l  Lev i ' s®   j eans  have   cap tu red   the   attention ,   imagination   and   loyalty   of generations   of   diverse   individuals. As   the   inventor   of   the   category,   the   Levi’s   brand continues to define jeans wear with widest range of products available from quintessential classics, such as the famous Levi's®501® Original jean to favourite 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  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   wo 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 fashionable tops, dress and casual pants and a full rangeof accessories designed 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 in 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

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e n t   o f   s t y l i s h   a n d   i nnova t i ve  p roduc t s inc lud ing   fu l l   l i ne  o f   tops , f oo t    wear s ,   a c ces so r i e s ,   f o r   a  b road   range  o f   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   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

VARIETY  Levi’s 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 Levi’s jeans have been present at nearly every pivotal moment in history and culture for the past 150 years.                                                                                          

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Shirts

Cotton Pants

Accessories Belt

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Sunglasses

           

Wallets

Lady Bag

Jacket

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Shoes

Features:Features   are   competitive   tools   that differentiate   the   company’s   products   from   its competitor’s  products.  Following are some of  the main and distinctive features of  Levi’s products. Comfort  Levi’s jeans and other products are comfortable enough to be worn even at the times of protest, war, Cultural Revolution, relative peace and pure fun. DurabilityThe   two   figures   on   the   patch   of   Levi’s   jeans  with  whips   in   hand   pulling   in   opposite directions, yet the jeans remain intact symbolize the strength and durability of the ‘Patent riveted clothing’.

StyleClothing means more than just fabric, thread and rivets. To clothe oneself means to put on something that symbolizes who you are. Levi’s 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.

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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 don’t overcharges to the customers, we pay it our self to the bank (3 %). Products   are   only sold for cash or on credit cards

Discount: They don’t give the discount to their customers, even to the  employees of   the Levis.  Their prices are fixed.

Payment period & credit termsPayment 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, that’s  why  we   don’t   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 don’t have the enough sales are recall back to the company. Again company issues this stuff to their own outlets for sale at discount prices.

 

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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.

                           

Channels

Strategy: Levi’s 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. Bahra in ,   I s r ae l ,   J o rdan ,   Kuwa i t ,  Oman ,  Qa ta r ,   Saud i  A rab ia ,  Un ited  A rab  Emi ra tes  Ango la ,   Bo t swana ,  Mozambique,   Namibia   ,   South   Africa. Argentina,   Belize,   Bolivia,   Brazil,   Chile, Colombia,   Costa   Rica,   Ecuador,   El  Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela.

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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 Company’s image as innovator. To create bonds between public and Levi Strauss by helping the people.

Sales PromotionsAdvertising:-The types of advertising used by LEVIS are:

Competitive advertisingThe   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 company’s 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.

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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   f a sh ion   magaz ines   and   newspaper s   LS&Co .   i s   a   t a rge t   due   to   i t s g rand   b rand   equ i t y ,   i t   ha s   become   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:- Levi’s holds a very big sales department as it is working in many countries.

Level of Distribution Intensity: Levi’s is using selective but intensive distribution level for the distribution of its products.

Sales Offices and Sales Branches:

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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 OpportunitiesTo 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 Example1. Philanthropy includes a focus on strengthening workers'  rights and ultimately improving  working   and living conditions in 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

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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 .   I n   1998 ,   L S  &Co   rece i ved   the  U . S .   P re s iden t ' s  Ron   B rown   Award   fo r Co rpora te   Leader sh ip   fo 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 FoundationThe 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 

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grants to community organizations located   in LS&CO.'s sourcing communities,  and funds college scholarships for the dependents of LS&CO. employees.

Employee Community InvolvementOur employees are a big part of how we give back to our communities we invest in   what   is   important   to them.We  encourage  emp loyees   g loba l l y   to   g i ve  back   to   the i r   commun i t ie s   th rough  emp loyee - l ed  Commun 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 GrantsThe   core   grant   includes   the   following:   Corporate   Social   Responsibility Economic   & Educational Opportunities HIV / AIDS .

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.comhttp://levi.in

www.wikipedia.org

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