PRESENTATION ON A RETAIL BRAND SELECTED BRAND : PRESENTED BY SIVA SAKTHI A. KATHIRAVAN R. ROSHAN RAJA K. POONAM PUROHIT VINAY PRAJAPATIDEPARTMENT OF FASHION TECHNOLOGY MASTER OF FASHION TECHNOLOGY NIFT, GANDHINAGAR
LEVI’S HISTORY• Levi Strauss & Co. (LS&CO) is a privately held clothing company.• It is well known worldwide for its Levis brand of denim jeans.• It was founded in 1853 by Levi Strauss.• First showroom started at San Francisco.• The company began producing denim overalls in the 1870s.
• Though the company is experimented with employee ownership and a public stock listing, remains owned and controlled by descendants and relatives of Levi Strauss four nephews.• In Levis, the main brand, was founded in 1873 in San Francisco, specializing in denim jeans and different lines of casual and street fashion.• Entered the European and Asian market in 1965
• From the early 1960s through the mid 1970s, Levi Strauss experienced explosive growth in its business, by giving more casual look in blue jeans.• It acts as a catalyst for promoting the brand.• Levi Strauss Signature features jeans wear and casual wear launched in 2003.• 10,500 employees around the world in Levi’s.
LOCATION• Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions: - Levi Strauss America (LSA), Head quarters – San Francisco. - Levi Strauss Europe, Middle East and Africa (LSEMA) Head quarters - Brussels - Levi Strauss Asia Pacific Division (APD), Head quarters – Singapore.
LOCATION AROUND THE WORLDEUROPE LATIN AMERICA ASIA PACIFICBelgium Argentina Asia HomepageCzech Rep. Brasil AustraliaDenmark Centro America ChinaDeutschland Chile Hong KongUK Colombia IndiaFinland Ecuador IndonesiaFrance Mexico JapanGreece Paraguay KoreaHungary Peru MalaysiaIreland Uruguay New ZealandItalia Venezuela PakistanNetherlands Singapore
JOINT VENTURES• Great Western Garment Co. (GWG), a Canadian clothing manufacturer. GWG was responsible for the introduction of the modern "stone washing" technique, still in use by Levi Strauss.• Levi Strauss attempted to sell the Dockers division in 2004 to relieve part of the companys $2 billion outstanding debt.
FASHION IMAGE• Fashion Image is a pictorial representation of how the brand is looked upon in the market.• The fashion image mainly focuses on comparison of this product with its competitor and hence the term 4P’s comes into picture.• A fashion image and its graphical growth is directly proportional to the growth in 4P’S.
POSITION IN FASHION CYCLEPLC consists of five main aspects: (1) product development;(2) introduction;(3) growth; (4) maturity; and(5) decline• Levis have managed to re-invent their jeans brand through the use of different fabrics and cuts that have given their product a new, youthful look.• In addition to those variations to the common PLC, the concept can also be used to describe (1) fads, (2) fashion, and (3) style.
• Fads are fashions that are introduced and adopted very quickly, but just as quickly can fall.• They typically have a limited following, but are nonetheless adopted with real zeal, such as the hula-hoop.• Fashions grow more slowly but still quite quickly before eventually witnessing a decline.• In some cases these become a style; that is, they come back into fashion.
Product• Red tab jeans offers traditional cuts• Silver Tab jeans define fashion looks with a background of quality• Levi’s jeans expanded its fashion designs not only in men and women apparels, but also in kids wear.
PRODUCT LINE SHIRTS JACKETS TOPS T-SHIRTS MENS WEAR VEST UNDERWEAR BOTTOMLEVIS JEANS JEANS WOMEN WEAR T SHIRTS JACKETS
MEN’ WEAR-PRICE T – SHIRTSITEM SIE PRICE RANGEBASIC T-SHIRT S, M, L, XL, XXL 399-699POLO NECK S, M, L, XL, XXL 599-899VETAL NECK S, M, L, XL, XXL 1099-1299HIGH NECK S, M, L, XL, XXL 899-1099V NECK S, M, L, XL, XXL 797 (PACK OF 3)ROUND NECK S, M, L, XL, XXL 567 (PACK OF 3) JACKETSITEM SIZE PRICE RANGEDENIM L,XL,XXL 2799-3699LEATHER L,XL,XXL 3599-5999SLEEVELESS L,XL,XXL 1299-3000WAIST COAT L,XL,XXL 1299-2199FORMAL L,XL,XXL 1499-2599 CASUAL SHIRTSITEM SIZE PRICE RANGECHECKS M,L,XL,XXL 999-1799PRINTED M,L,XL,XXL 1599-2999LINEN SHIRT M,L,XL,XXL 1699-3299 JEANSITEMS SIZE PRICE RANGESTRAIGHT 28’-42’ 1799-6990BOOT CUT 28’-42’ 2299-3200NARROW 28’-42’ 2399-5300PENCIL FIT 28’-42’ 2799-7200
WOMEN WEAR T-SHIRTS ITEM SIZE PRICE RANGE BASIC S, M, L, XL, XXL 299-599 FULL SLEEVES S, M, L, XL, XXL 699-1799 SLEEVELES S, M, L, XL, XXL 599-1299 SPEGETIS S, M, L, XL, XXL 499-1099 POLO SHIRTS S, M, L, XL, XXL 599-1299 JACKETS ITEM SIZE PRICE RANGE DENIM L,XL,XXL 4999-9999 LEATHER L,XL,XXL 3599-23000 SLEEVELESS L,XL,XXL 2499-8999 Cotton L,XL,XXL 1499-2199 CASUAL SHIRTS ITEM SIZE PRICE RANGE CHECKS M,L,XL,XXL 999-1799 PRINTED M,L,XL,XXL 1599-2999 LINEN SHIRT M,L,XL,XXL 1699-3299 JEANS- ITEM SIZE PRICE RANGE CAPRIS (DENIM) 28’-36’ 2199-3299 CAPRIS (COTTON) 28’-36’ 1899-2499 BOOT CUT 28’-36’ 2199-2899 STRAIGHT 28’-36’ 1699-2299 NARROW 28’-36’ 2599-3799 PENCIL FIT 28’-36’ 2999-4199 SLIM FIT 28’-36’ 2499-3499
Place• Vast distribution channels spread all over the world• In Asia it has the brand distribution in the countries like China, Guam, India & Japan• In India, its products are distributed by MAYUR MARKETING, which is headquartered at New Delhi
Promotion• Aggressive campaigns• Launch and promotions are coordinated with licenses in various countries.• Advertisements through mass media such as print and electronic transmission bell boards and on the internet are some of LEVI’S way of raising brand awareness among the consumers
CSR• CSR/Sustainability• San Francisco Business Times Green Business of the Year Award — Large Company (2009)• Catholic Charities CYO Loaves & Fishes Outstanding Corporate Philanthropy Award (2008)• World Affairs Council of Northern California Award for Corporate Citizenship in a Global Economy (2005)• The Points of Light Foundation George Bush Corporate Leadership Award &,dash; to LS&CO. Chairman Robert Haas for his strong commitment to volunteerism, both through personal example and by sponsoring employee programs (2004)
• Ms. Foundation “Gloria” Corporate Philanthropy Award — to the Levi Strauss Foundation (2004)• San Francisco Beautiful corporate award — in recognition of their inaugural Community Day, held in 2000 (2001)• Council on Economic Priorities corporate social responsibility survey — LS&CO. is ranked first out of 320 companies and assigned an “A” rating for charitable giving, disclosure, family benefits, minority advancement, womens advancement and workplace issues (2000)
The Campaign: “jeans for life”• “jeans for life” triple play: – Levi’s jeans are durable and long-lasting – Levi’s jeans can be worn throughout your life across ages – Levi’s jeans can be worn during whatever you are doing in your life• Advertising campaign will make use of the “jeans for life” tagline, but will incorporate all three ideas in different ways
About Levis Strauss(India)• Established in 1994• Bangalore in Jun 1995• The company market Levi’s, Dockers San Francisco• Levis® has become the largest and most iconic jeans wear brand in the country• 270 exclusive stores, 500 other points of sale, across more than 200 towns across India.• "Most Admired Jeanswear Brand of the Year" for six years in a row.
Levi’s India: CSR• Values- Empathy, Courage, Integrity and Originality• It reflects legacy of responsible corporate citizenship. It guide its commitment to philanthropy and community involvement.• Supporting programs like economic empowerment of youth and women, educational programs, promote awareness , etc.• Awareness for HIV Aids
LEVIS® CHANGES THE WORLD OF INDIAN YOUTH!• Priyanka Chopra to feature in new Levi’s® music video.• Levi’s® launches Fellowships, Music Cards and a whole lot more. Customized Chevy Beats, iPhones, Mac Books & iPod Shuffles up for grabs• A first of its kind collaboration in India, between two iconic American brands, the Levi’s® + Chevy Beat custom-cut vehicles.• 2010 brand ambassador – Imran Khan
Media Placement• Choosing media placement based on reach to target audience
Digital Media StrategyObjective: Create forums in which customers can interact with each other and with Levi’s to build brand image and loyalty.Venues:• Website – Corporate website (levi.com) linked to by over 1,000 sites• Face book – Largely trafficked, 60% of our target market are users – Primary face of our digital media campaign• YouTube – Reach 52% of our potential customer base – Allows for more “active” extension of “jeans for life” campaign• Twitter – Linkage to corporate website, Face book, YouTube – Announce promotions, how-to videos, engage with customers
SponsorshipWWE wrestler Batista Nathan’s Hot Dog Eating Competition
Insight Target Consumer, Behavior• Who is our SVC: – Male, 25-45 yrs old (bull’s eye: 30-35) – Not terribly price sensitive – Wants value for money – Will not compromise on fit – Owns few pairs of jeans, wears them longer – Currently not brand loyal• Purchase behavior: – Buy for themselves – Don’t shop for pleasure – Focus on fit, comfort – will pay extra for quality
SEASON• Apr-July : 33% Of Products• Order Confirmation: january• Goods At Warehouse: mid March• At Stores: April• Repeat Orders: May
• Aug-Nov: 40% Of Products• Order Confirmation: May• Goods At Warehouse: Mid July• At Stores: August• Repeat Orders: September• Nov-Jan: 27% Of Products• Order Confirmation: August• Goods At Warehouse: September• At Stores: October-mid• Repeat Orders: December
Technology• Intellifit system: Intellifit system is one of the most advanced measuring system used in Levi’s stores. In which, full body scanning takes place, gives a very precise measurement. This is also used for customized production of the garments.
MODE OF SOURCING• Levis works with direct sourcing in INDIA• LEVIS signs a contract with all the supply chain suppliers with a major focus on sustainability and eco-friendly goods.• Cotton• Fabric• Product Suppliers• Distribution• Retail
SUPPLY CHAIN• FIBRE: More than 95% of all Levi’s® products are made with cotton grown in the U.S., China, India, Pakistan, Turkey or one of the many other countries where cotton is farmed.
FABRIC• Once the cotton leaves the fields, it is spun and made into fabric by mills around the world.• LEVIS generally do not purchase fabric directly from the mills, but takes important steps toward partnering with them in their drive toward sustainability.
PRODUCT SUPPLIERS• LEVIS is committed to Responsible Global Sourcing.• LEVIS contract production from manufacturing suppliers that cut, sew, finish and wash our products.• Hence they build sustainability directly into the contracts.
DISTRIBUTION• Once the garments are ready for shipment , LEVIS distributes them through their own logistics department• The INDC is generally the head office at US.• 90% of goods to local retail stores• 10% of goods done on-line
PAYMENT AND SHIPMENT• Means of LC-60 DAYS• CREDIT PAYMENT• PRICING DONE ON FOB TERMS• ONLY AFTER APPROVAL OF PACKING LIST• SHIPPING DONE THROUGH NOMINATED LOGISTICSS
SAMPLE MOVEMENT• SALES MAN SAMPLES• PICTORIAL SAMPLES• DEVELOPMENT SAMPLES• INITIAL PRODUCT SAMPLES• GREEN TAG SAMPLES• YELLOW TAG SAMPLES• SHIPMENT SAMPLES
QUALITY STANDARDS• PP MEETING-INITIAL PRODUCT INSPECTION 1.After confirmation of GTS samples 2.Production starts after PP meeting• INLINE INSPECTION 1. After production starts 2. Checking of Test reports• INLINE INSPECTION –MIDWAY 1.Checking of error correction• FINAL INSPECTION 1.After Production
PROFIT TO SUPPLIERS• Normally for the new suppliers the profit margin is 12 %• In the year 2009 , during the time of recession the profit given to suppliers was 6% of the total value
SUPPLIERS FROM INDIA• Alpine Apparels Pvt Ltd - Bangalore• Ambattur Clothing Company - Chennai• Aviram Knitters - Tirupur• GO GO International - Tirupur• BEST Garments - Tirupur• Bombay Rayon - Bombay• Casual garments - Tirupur• EXIM Clothing - Tirupur
PRODUCTS SOURCED FROM INDIASOUTH INDIA –MANUFACTURERS• Knit Wear Segment: 23% from Tirupur• Woven Shirting Segment: 2% from Chennai• Denim Segment: 12% from Bangalore
TRADEMARKSLevis has more than 5,000 trademark registrations and pendingapplications in approximately 180 countries The Levi’s, Dockers, the Arcuate Stitching Design, the Tab Device, the Two Horse» Design and the Wings and Anchor being the core of all
ECO-FRIENDLY• Ecofriendly : LEVI’S® BRAND LAUNCHES 100% ORGANIC COTTON JEANS• Red Tab and, the recently launched, Levis Capital E lines. The jeans will be identified as Levis Eco.
NOMINATED SUPPLIERSFABRICS• Arvind Mills -India• Alok Fabrics -India• Jay Gee Melwani Group -Singapore• HydePark Denim CompanyTRIMS• Paxar -India,Bangaladesh• KRF -India• East Coast -Honk Kong
COMPETITIVE EDGE• Effective communication to customer complaints• Contract systems with suppliers• LEVIS audit done based on social compliance and environmental standards in equal intervals of time