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Advertising Plan of Levis Strauss Company




Table of Contents



Dedication …………………………………………………………………….. 01

Acknowledgement …………………………………….…………………….. 02

Executive Summary ………………………………………………………….. 03

Introduction …………………………………………………………………… 04

History …………………………………………………………………………... 05

Brands …………………………………………………………………………..          06

Values …………………………………………………………………………..          09

Vision Statement ……………………………………………………………..     10

Mission Statement ……………………………………………………………      11

Aspiration Statement ………………………………………………………..   12

Situation Analysis ……………………………………………………………..   14

Competitive Analysis ………………………………………………………..   14

Current Market Need ……………………………………………………….     15

SWOT Analysis …………………………………………………………………         17

Objectives ……………………………………………………………………..        20

Scanning Environment ……………………………………………………...    21



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Advertising Plan of Levis Strauss Company



Market Segmentation …………………………………………………….       22

Target Market ……………………………………………………………….         28

Marketing Mix ……………………………………………………………….         30

Product Attributes …………………………………………………………       31

Brand Positioning ………………………………………………………….       32

Brand Personality ………………………………………………………….       32

Features Analysis Chart …………………………………………………..    33

Implementation ……………………………………………………………          35

Evaluation …………………………………………………………………..          38

Budgeting …………………………………………………………………..           41

Media Strategy …………………………………………………………….         48




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Advertising Plan of Levis Strauss Company




                    DEDICATION



  • This humble effort is dedicate to the last Holy
     Prophet Hazrat


          MUHAMMAD (PEACE BE UPON HIM)

Who is the only perfect ideal of life for human peace.


  • This struggle is also dedicated to our beloved


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Advertising Plan of Levis Strauss Company




                                   PARENTS

   • By the virtue of whose prayers and show hands
       are always raised for pray, for our well being,
       even at this moment of time.




                          ACKNOWLEDGEMENT


First of all we would like to thank ALLAH ALMIGHTY, who blessed us the courage to

accomplish this project. Apart from the efforts of us, the success of this project

depends largely on the encouragement and guidelines of many others. We take this

opportunity to express my gratitude to the people who have been instrumental in the

successful completion of this project.


Then, there is a great contribution of our family members, who

supported us with all the aspects at every stage of this project.


We would like to show my greatest appreciation to Mr. Ahmad Sohail

Khan. We can’t say thank you enough for his tremendous support and

help. We feel motivated and encouraged every time we attend his

class. Without his encouragement and guidance this project would not

have materialized. A pleasure gratitude to




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Advertising Plan of Levis Strauss Company



The guidance and support received from all the team members who,

was vital for the success of the project. We greatly mention the

cooperation of team members.


                                                      Team of Concept Creators,

                                                                         MBA 3rd,




                          Executive Summary



This integrated marketing communications plan is designed for new advertising
campaign for Levis Strauss Company. Levis Strauss Company is manufacturer of
jeans and many other clothing products. Brands are very famous due to style and
quality and people feel prestige while using the products of Levis.




The plan includes introduction history of the company and it also includes promotion
analysis, corporate strategies, Objectives, relevant advertisings through different
mediums like TV, Radio, Newspapers, billboards, budgeting for the entire campaign
etc. After then evaluation and finally media plan has described.




The overall goals for this plan are:




      To inform, persuade and remind the potential customers about its products

      Increase awareness and build primary demand

      To build strong brand equity.

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Advertising Plan of Levis Strauss Company



      Build Company’s image as innovator.

      To create bonds between public and Levi Strauss by helping the people.

      To create the importance of its products




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 they position the company for future growth.




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Advertising Plan of Levis Strauss Company




HISTORY




      Today, the Levi’s® 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 half-
brothers Jonas & Louis in New York. Levi joined their dry goods business. In 18are
offering many products according to different segments defined further under
segmentation. They are doing business all over the world and expanded their outlets
throughout the world. On the other side they are manufacturing their jeans and other
products through outsourcing from different countries. In Pakistan Crescent Bahuman
Ltd and Nishat Mills are their main manufacturers. The brands that are offering by
them are given below under product offer.

Product Offerings:

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Advertising Plan of Levis Strauss Company



By segmenting their target market they are offering different products to different
consumers detail is given below:




BRANDS:

The products of Levi Strauss & Co are sold under three brands:




Levi's®:




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 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 favorite fits
and styles in our Red Tab™ and Levi's® Premium collections.




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Advertising Plan of Levis Strauss Company




                                                .


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® 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 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.




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Advertising Plan of Levis Strauss Company




Levi 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.




Other Products offerings”

   •   SHIRTS

   •   COTTON PANTS

   •   ACCESSORIES

   •   BELTS

   •   SUNGLASSES

   •   WALLETS

   •   LADY’S BAGS

   •   JACKETS


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Advertising Plan of Levis Strauss Company



   •   SHOES




VALUES:

       Levi Strauss & Co. has four major core values. These are

   1. Empathy

   2. Originality

   3. Integrity

   4. Courage

Levi Strauss & Co. says,

        “Our corporate values -- empathy, originality, integrity and courage -- are the
foundation of our company and corporate values -- empathy, originality, integrity and
courage -- are the foundation of our company and define who we are. They underlie
how we compete in the marketplace and how we behave. Define who we are. They
underlie how we compete in the marketplace and how we behave.”




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Advertising Plan of Levis Strauss Company




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 Company’s tradition, closing
gaps that may exist between principles and practices and updating some of their
values to reflect contemporary circumstances.




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Advertising Plan of Levis Strauss Company




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.




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Advertising Plan of Levis Strauss Company




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.




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Advertising Plan of Levis Strauss Company




                         Situation
                       Analysis




Situation Analysis

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Advertising Plan of Levis Strauss Company



Levi Strauss and Company is approaching to the saturation of Jean Market. The fast
changes in the consumer tastes, competition from both lower and high-end brands,
the fast development in the modern distribution and sales technology has brought a
continuous lose of market share.

A new series of Engineered Jeans has been developed and launched as part of
program intending to meet the needs of their major target, in order to regain lost
marker share and maintain their position the industry. Their expertise in Jeans and
causal dress industry will be fully exploited at world basis.

This year, they intended to strengthen the promotion of this new brand. Certain
resources will be allocated to their existing brands, to maintain market share of 501,
enlarge market share of Dockers and slates. Communication with their customers is
important for us. They will also improve their relation with them, and track the
changes in the taste and need of their main target market. Information system will
also be improved to enhance their ability to adapt the market change.

On the other side in the Pakistan Levi Strauss & Co is facing few problems. Here due
to decrease n the income level of the people people are not in this condition to buy
high priced products of Levi Strauss & Co. Other issue is that the local manufacturers
use the tag of highly reputed brands that’s why consumer traped and purchase these
products.




Completive Analysis:

Levi Strauss & Co. was threatened by competition, because barriers of entry were
relatively low in the jean market. (excluding the of entry were relatively low in the
jean market. (excluding the patent) patent)


•Some of Levi Some of Levi’s competitors include: s
competitors include:

      Calvin Klein

      Gap Jeans



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Advertising Plan of Levis Strauss Company



     Denim Jeans

     Stone age

     Tommy Hilfiger


•The entrance of new competitors had many effects on
Levi’s.

     Levi’’s no longer has monopoly power so now they have to set more
      competitive prices due to that lower profits they gain.

     Availability of substitutes firm faces increase in elasticity of demand

     The prices of competitor’s products are lower so consumers prefer other
      brands. So when their consumers purchase products from the competitors its
      minimizes its market share.

     Competitors successfully were able to take from Levi’s market due to heavy
      advertising and branding. . Branding was especially effective for companies
      like Calvin Klein that targeted high-end consumers.

     Some of the marketing strategies that competitors like Calvin Klein used to
      differentiate their product and brand included:

           Celebrity endorsements (Calvin Klein and Brooke Shields)

           Up Up-to to-date European product designs (low rise, tighter)

           Advertise jeans as “designer.”

     These advertisements were used as a barrier to entry, because of spurious
      product differentiation. Although Levi’’s jeans may physically the same as its
      competitors, consumer preferences are affected by brand name.




Current Market Need:


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Advertising Plan of Levis Strauss Company



     Its not just how good a product is that determines if consumers will buy it.
     Many people find themselves motivated by several factors when that all-
     important decision to purchase a specific product is made. For us it is as
     simple as comparing the prices, but many others there are many emotional
     factors that weigh heavily on their decision. Does this product make me feel
     good about myself? What image does this product present me with? What
     effect will owning this about myself? Consumers ask themselves questions
     such as these when making decisions about whether or not to buy something.

     Do people want to be like someone they see in as advertisement? This
     question is the basis for marketing, particularly in the clothing industry.
     Buyers over the years have liked the rugged. Confident, individualistic and
     laid back image that Levi’s give them. This image, which has been created
     through the company’s intelligent marketing scheme, has allowed to company
     to maintain its prosperity over the year.




     SWOT Analysis:

     Bases on the Levis Strauss unique resources and capabilities as to be the first
     mover in the industry and one of the ten top US recognized brand name has
     continue developing new products (as the Jacket with MP3) and looking after
     new markets this will allow to adapt to the fast consumers taste changes and
     to move away from the saturation of the jeans market.


     Strengths:

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Advertising Plan of Levis Strauss Company



           History

           Pioneer in Jeans

           Levi’s enjoys high brand equity. People all around the world recognize
            the brand name.

           Levi’s products are unique and innovative in the style.

           A lot of variety is offered by Levi’s ranging from sunglasses to skirts
            and shirts.

           Diversity

           The products are renowned and are considered as the most durable
            i.e. the long lasting products.

           Levi’s follows a high standard of quality.

           Expertise in jeans industry

           Finance and access to international markets

           Its highly expertise and intelligent management

           Distribution channels and Global sourcing




Weaknesses:

            Levi’s 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.

            Levi’s does not provide any services like free delivery etc

            Lack of control on distribution decisions ( Retailers pressure to stop
             selling on web)


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Advertising Plan of Levis Strauss Company



Opportunities:

     Levi’s can do more well in the women section. This section is give less
      importance as compared to the men section.

     The kid’s 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 of customers.

     Low manufacturing and production cost in various international markets like
      Pakistan and Bangladesh.


Threats:

     Saturation of jeans market.

     Local competitors in expanded markets

     The threats that Levi’s faces are the competitors. Although it does not have
      any competitor in Pakistan but it does have some competitors at the global
      level.

     Fast change in the consumer taste.

     Economic downfall in many countries like Pakistan.




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Advertising Plan of Levis Strauss Company




     KEY PLANNING DECISIONS




Marketing Objectives:

   To improve leadership market position and superior product and service

   To maintain and protect the global brand

   Increase the market share in products by annual average of 12.8% in the next
     five years.

   Also, to maintain the global market share of denim products in the same
     period.


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Advertising Plan of Levis Strauss Company




Advertising 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.

      To create the importance of its products




SCANNING THE MARKETING ENVIRONMENT:


         Like other successful companies, Levi’s also has realized that the marketing
environment presents a never-ending series of opportunities and threats. The major
responsibility for identifying significant changes in the macro environment falls to a
company’s marketers. More than any other group in the company, the marketing
managers   of Levis   are   the   trend   trackers   and opportunity   seekers.   Many
opportunities are found by identifying trends (directions or sequences of events that
have some momentum and durability) and mega trends (major social, economic,
political and technological changes that have long-lasting influence). Within the

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Advertising Plan of Levis Strauss Company



rapidly changing global picture, the marketers of Levi’s are monitoring the following
six major “Environmental Forces”:




   •   Demographic Environment

   •   Economic Environment

   •   Natural Environment

   •   Technological Environment

   •   Political-Legal Environment

   •   Social-Cultural Environment




Products,                 Positioning,                   and             Market
Segmentation:

       Advertising professionals realize that the heart of any campaign is the product
and the position it holds in people's minds. Products and their brand names are
newsmakers themselves. Understanding the complexities of a brand identity and its
position is no easy task. One of the most controversial areas of product concepts is
the brand extension. A new product gets to share the name of an older, established
brand. Early theorizing suggested that brand extensions would sap market clout from
the established product, but these fears proved groundless. Today brand extensions
occur not only within the company, but companies are licensing their brand names to
all kinds of products in the hope of increasing brand awareness.




Target Audience- basis for segmentation:

Market Segmentation:


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Advertising Plan of Levis Strauss Company



Segmentation is the basis for developing targeted and effective marketing plans.
Furthermore, analysis of market segments enables decisions about intensity of
marketing activities in particular segments. A segment-orientated marketing
approach generally offers a range of advantages for both, businesses and customers.




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


BASIS OF MARKET SEGMENTATION

Levis Strauss Company segments its market on different basis. The detail of each
segment given below in detail:

    Demographic Segmentation

     There’s little excuse for being surprised by demographic developments. The
     main demographic force that marketers monitor is population, because people
     make up markets. Marketers are keenly interested in the size and growth rate
     of population in cities, regions, and country; age distribution and ethnic mix;
     educational     levels;   household       patterns;    regional   characteristics    and
     movements. The company makes clothes foe men, women, children & teens. So
     everyone is a potential customer for LEVI’S. LEVI’S generally appeals to more
     mature generations not necessarily looking to make fashion statement. LEVI’S
     makes an effort to appeal to all

     Customers in one way or another, which has been a key to their success over
     the years. Assuming that the world population is growing LEVI’S can infer that
     the market for jeans is also growing.

       Consist of dividing the market into groups bases on variables such as age,
       gender, family size, income, occupation, education, religion, race and the
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Advertising Plan of Levis Strauss Company



     nationality. Levis Strauss Company’s main segmentation variables are
     summarized below:

       Age:

           Few years ago Levis Strauss Company segmented its customers
           according to their age. Its provides all type of brands for the people of
           all ages for example Levis Strauss Company has huge product line
           from children to old people. The target audience is the young people
           who wear jeans as fashion. On the other hand the because LS & Co
           offer products for all ages so mature and old people are also come
           under age segmentation of target audience.

       Gender:

           Gender segmentation of Levis Strauss Company is for male and
           females. They manufacture brands for both genders.

                 Income:

                 High income people are come in this segmentation. The prices
           of Levis Strauss Company is high so they only target those people who
           earn a good income and afford to purchase the brands.




       Occupations:

           In the occupational segmentation they have segmented their market in
           different ways. Students, professionals, business men & women and
           executives.

       Education:

           Well educated people.




  • Geographic Segmentation


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Advertising Plan of Levis Strauss Company



       Geographic segmentation calls for dividing the market into different
       geographical units such as nation, states, regions, countries, cities, or
       neighborhoods. The company can operate in one or a few geographic
       areas, or operate in all but pay attention to local variations. Levis Strauss
       Company has segmentise ite market accordint to region that are given
       below:


        Levi Strauss Americas

          Levis Strauss Americas in the company’s largest region. The Americas
          region markets products under the Levi's®, Dockers® and Levi Strauss
          Signature® brands and includes four businesses: Levi Strauss U.S.,
          Levi Strauss Canada, Levi Strauss Mexico, and Levi Strauss Latin
          America.

        Levi Strauss Europe, Middle East and North Africa

          Levi Strauss Europe, Middle East and North Africa (LSEMA) is
          responsible for designing, manufacturing and

          Countries in this Region:

          LSEMA markets and sells products in the following countries: Albania,
          Algeria, Andorra, Austria, Azerbaijan, Bahrain, Belarus, Belgium, Bosnia
          and Herzegovina, Bulgaria, Croatia, Cyprus, Denmark, Egypt, Estonia,
          Finland, France, Germany, Greece, Georgia, Hungary, Iceland, Ireland,
          Israel, Italy, Jordan, Latvia, Liechtenstein, Lithuania, Luxembourg,
          Kazakhstan, Kuwait, Kyrgyzstan, Malta, Mauritius, Moldova, Monaco,
          Montenegro, Morocco, Northern Cyprus, Norway, Oman, Poland,
          Portugal, Qatar, Romania, Russia, San Marino, Saudi Arabia, Serbia,
          Slovakia, Slovenia, Spain, Sweden, Switzerland, The Czech Republic.

        Levi Strauss Asia Pacific Division:

          Levi Strauss & Co.'s Asia Pacific Division is comprised of subsidiary
          businesses, licensees and distributors throughout Asia Pacific, the
          Middle East and Africa



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Advertising Plan of Levis Strauss Company



           The division sources, manufactures and markets Levi's®, Dockers®,
           and Levi Strauss Signature® products through affiliates.

           Countries in this Region:

           India,   Indonesia,   Japan,   Singapore,   Pakistan,   Philippines,   Korea,
           Malaysia, Taiwan, Vietnam.


  • Psychographic Segmentation

          Basis of Psychographic Segmentation are given below:

                 Life style

                 Activities

                 Interests

                 Personality

                 Values


  • Behavioral Segmentation

     In this segmentation following segments are consider by Levi Strauss
     Company:

                 Occasions

                 Brand loyalty

                 Usage rate

                 Benefits




Segmentation                   Data
Variables


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Advertising Plan of Levis Strauss Company



Geographic


World region          Asia

Country               Pakistan

Cities                All major cities of Pakistan

Density               Urban



Demographic


Age                   All Ages

Gender                Male, Female

Family Life Cycle     Young , Single; Young, Married, no children; Young,
                      Married with children; Older, Married with children;
                      Older, Married with no children under 18; Older, Single;
                      Other

Income                15000 and above

Occupation            From middle class to upper class

Education             Schools, College, Universities

Religion              Major religion of Islam, Christianity

Race                  Asian

Nationality           Pakistani



Psychographic



Social class          Working class, Middle class, Upper class.

Lifestyle             Actualizes, Fulfilled, Believers, Achievers, Strivers,
                      Experience’s makers and Strugglers



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Advertising Plan of Levis Strauss Company




Behavioral



Occasions                      Parties, Birthdays, Regular Islamic Occasions

Benefits                       Quality, Style, prestige, Durability

Attitude towards product       Positive

User Status                    Regular users and new users




Target Market:

Once the firm has identified its market-segment opportunities, it has to decide how
many and which one to target. Levi Strauss has oppertunies in different
segmentation. They target its market according to their brands and relating
segmentation. In evaluating different market segments, the firm must look at two
factors: the segment’s overall attractiveness and the company’s objective and
resources.

Because we are making advertising plan to keep the market of 501® JEANS targets
its market by evaluating different segments. Mostly Levi’s targets its market among
the following classes:




   •   Upper Class

       People who belong to this class they always to experience those products
       which provide them prestige and quality products. Due to high income class
       they do not consider the price factor. So Levi’s is the brand that has eared
       popularity throughout the world and it is symbol of prestige and quality which
       is demanded by this class. So Levi Strauss Company is targeting this class and
       people from all age rang and both genders will be targeting from this class.


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Advertising Plan of Levis Strauss Company



  •    Upper Middle Class

       In this class people having good education professionals and corporate
       executives and business owners belongs. They have a great touch with the
       world and have good income. They can afford to wear costly products. So
       people from this class will also targeting.




Target 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. Through
      their good quality products and best services they always attract customers.



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:

              JEANS is fulfilling the conditions for effective segmentation.

                  Segments are strong enough to make profit.

                  Segments of company are measurable




Limitation of Segmentation:

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Advertising Plan of Levis Strauss Company



          Because of segmentation, Levi’s faces some limitations.

           Lack of awareness in middle class.

          Company has to pay extra cost for multi-advertisement.

           In Pakistan they have to face several Cultural Barriers.


Marketing Research:

According to Levi’s marketing logistic manager, their company conducts a research
to know

   •   What’s in trend?

   •   What are the needs of customers?


Sources of Data:

           Levi’s 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.


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 seller’s view of the
marketing tools available for influencing buyers.


PRODUCT:

“Product means set of tangible and intangible attributes which may include
packaging, color, price, quality and brand plus the seller’s services and reputation. A
product may be a place, service, good or promotion.”




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Advertising Plan of Levis Strauss Company



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.




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 product

   •   Variety

   •   Features

   •   Design

   •   Color

   •   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:


Competitors:



                                                                                32
Advertising Plan of Levis Strauss Company



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.

   •   CK

   •   GAAP Jeans

   •   Stone age

   •   Tommy Helifiger

   •   Our 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.




Brand Positioning:

Positioning differs between countries and market segments. For example, in America
and much of Europe the emphasize is on jeans as casual attire. In contrast, Pakistanis
wears indicates to social fashion awareness and high status,

For adolescents and youngsters adults ( 14 to 24) who want casual attire, engineers
jeans by Levis provide a unique fit and functional status, unlike other competitors.




Brand Personality of Levi’s:

Brand personality is a set of human charectraristics associated with a brand.
Personality is how the brand behaves. Refers to the outcome of all the consumer’s
experiences with the brand, in other words, the brand personality is the weighted
average of previous impressions. In the consumer’s mind, these impressions merge
to form an overall concept of what to expect from brand. “We can define brand
personality of Levi’s as Rebellion, sensuality and being cool.”




                                                                                       33
Advertising Plan of Levis Strauss Company




       Features Analysis of Levi’s with its competitors:

Sr   Important                 to Levi’s          CK             Gap          Stone Age   TH
.    Prospect

1    Quality                        +             +              -            +           +

2    Price                          -             -              -            -           +

3    Style                          ++            +              +            +           -

4    Availability                   +             -              +            +           --

5    Prestige                       ++            +              +            +           +




       Competitive Advantages


                     Levi’s never compromises on quality.
                     Levi’s   products are available in cities and towns where it has more
                       demanded.
                     Levi’s is using the latest technology in its production units.
                     Levi’s offers a wide range of products available in its outlets.




                                                                                          34
Advertising Plan of Levis Strauss Company




Implementation




                                            35
Advertising Plan of Levis Strauss Company




Execution Plan



TV Ad

Levi’s is very famous all over the country, people who wears jeans almost know that
Levi’s products are very unique and a name of quality and prestige. For the
advertising campaign of Levi’s, a ad is also made in order to give a live message to
the audience about that the people who wears jeans should only wear LEVI’S jeans
because the actual jeans only made by them . In the ad initially we have not shouted
a video ad as run in the foreign countries because in this phase we only want to tell
people that JEANS IN LEVI’S. Our message through our ad campaign will force people
to think that the jean that they wear is not the actual jeans. In our ad we have shown
just products especially jeans pints by using the photos to show people the offerings
of Levi’s.




Print Media



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

                                                                                   36
Advertising Plan of Levis Strauss Company



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




Radio

Because students and young blood is one the main segment of our campaign and
now a days radio is very important mean to reach them because due to short time to
see TV and availability of FM radio in almost every cell phones model we can easily
send our message. The musical ad that will give the message about the outlet and
the latest products availability will be delivered through the radio. The message will
again remind the target audience our core message that “ JEANS IS ONLY LEVIS”.

Internet:-

Levis provides up-to-date information to their customers through electronic media i.e.
from their website.

Billboards & banners:




The same print media ad will be show in these selected medium to create long term
brand loyalty. The billboards having pictures of products will be displays on the
important places of major cities where outlets are opened. The message that will
shown through billboards and banners will again the same that “ JEANS IS LEVI’S”.
When people see this message again and again where they go they will definitely feel
that the jeans they wear is not the actual jeans and they will rush towards the Levi’s
outlets to have the real jeans.




                                                                                   37
Advertising Plan of Levis Strauss Company




          Evaluation




                                            38
Advertising Plan of Levis Strauss Company




Evaluation:

After implementation our plan our next step that is very important is to evaluate our
campaign to check our track whether we are going towards the right direction which
we planned or our targets will not achieve through this campaign. The evaluation
strategies that will be use are


   1. Before execution
   2. After Execution


Now we tell you how this evaluation will be run.


Before Execution:

Before execution evaluation strategy helps to make decision wither we should run
this ad or not. Many factors have to observe and after evelating the elements that
were under observation decisions are made. Before execution we will observe our ad
on different perameters that are given below:


Storyboard Idea:


For TV ad this methodology is very effective. Ad has being evelauted that what
message is being conveyed and what results or how effective the message is. The
actual purpose of this methodology to check that the message we have developed
through our ad is receiving in the same sense or not.


Behavior Analysis:


This strategy has made to check the behavior of people when the ad has being
exposing to them. Observers are there to watch the behavior and expressions of
                                                                                  39
Advertising Plan of Levis Strauss Company



viewers and see whether they are receiving the actual idea and how they perceive
the ad.




Questionnaire Technique:


In this method ad has exposed to viewers and then asked them to answer the
questions given in the quetionair and then match the answers with the benchmark
answers. If the answers are matcing with the benchmark answers then the ad has
worked.


After execution:

After execution evaluation used to check wether the compieghn is getting the
planned outcomes or not. Few methodologies used to evaluate the ad. Those
techniques are given below:

Sales volume:

After the execution sales have checked. The sales of 30 days after execution of ad
has compared with the previous few months sales volume if the sales volume has
increase then the ad has done what we are expecting from it.




Feelings analysis:

After execution of ad the feelings of people about the brand will also check. Whether
the campaign has created the good image of the brand or not.




Results of Evaluation:

After the evaluation phase we evaluate that the desires results that we were
expecting from our campaign are meeting. The sales volume has increase and the
popularity of the product has also increase. The customers who were detracted by
the competitors were coming back. The purpose of campaign to tell the people that



                                                                                  40
Advertising Plan of Levis Strauss Company



the JEANS IS LEVIS and making this phrase very popular among the consumers is
achieving through this campaign.




 Budgeting

                                                                          41
Advertising Plan of Levis Strauss Company




All You Can Afford:

Levis Strauss Company has a very big market and they sell their products almost all
over the word. Their advertising budget in every region is very high and invests a big
share of their earnings on the advertising. They made very costly ads because
usually in their ads they use big stars like Brad Pitt and Shahid Kapoor in their ads.
Their brand ambassadors are very renowned personalities and they charge a big
amount for it. So the advertising budget has to set high.


The basic purpose for choosing this method in Pakistan is that they are running
advertising campaign very first time in the country. So to choose the best media and
covering all targeted location through different kind of Medias to reach the target
audience.


The approaximately totoal budget for this campaign is 8 millions but it can be change
according to situation. The allocation of budget to the different media are given
below:


The channels for TV ad are selected:


    Geo News
    Hum TV
    Express News
    Ten Sports



                                                                                   42
Advertising Plan of Levis Strauss Company



Detail of time when the ad will run, duration , rates and approximately budget is
given below:




Hum TV:

Timing    Pricing      Basis   of    Days       Tim     Total Cost       Total Cost
                       Selection     to run     e to    per day          in
                                                run                      campaign
                                                per
                                                Day

19:30-    25000/30     This     is   10         5       75000            750000
22:00     sec          Prime time
                       includes
                       major
                       running
                       dramas

TOTAL                                                                    750000




Express News:

10:00-     10000/30     Mostly youth      10        30     sec   60000     600000
00:00      sec          class at this     Days      ad       6
                        time    watch     with      time
                        TV         for    little    during
                        external          time      this time
                        information       variati
                        like politics,    ons
                        economy,          on
                        national and      select
                        international     ed



                                                                                      43
Advertising Plan of Levis Strauss Company



Total                                                                    60000




Geo News:

10:00-    10000/30      Mostly youth     10         30     sec   60000   600000
00:00     sec           class at this    Days       ad       6
                        time    watch    with       time
                        TV         for   little     during
                        external         time       this time
                        information      variati
                        like politics,   ons
                        economy,         on
                        national and     select
                        international    ed

Total                                                                    60000




Ten Sports:

Timing    Pricing    Basis     of     Days         to   Time     Total   Total  Cost
                     Selection        run               to run   Cost    in campaign
                                                        per      per
                                                        Day      day

During    25000/3    Pakistani        All    ODI        25/      62500   3125000/ for
the       0 sec      nation    love   Series            each     0       one    series
cricket              cricket    and                     match            approximatel
ODI                  both genders                                        y
Series               and     people
                     from all age

                                                                                   44
Advertising Plan of Levis Strauss Company



                        levels   see
                        cricket
                        matches.

Total                                                                        3125000
                                                                             app




Cost of Radio:


Levis is not only advertising on Television but they are also advertising on radio. They
play the vocal ads on Fm 90 and 89. Advertising on radio is basically for the people
who are on roads; on the other side young generation is very good listener of fm. Due
to fm availability in the cell phones, so the message can be easily convey to them
through this medium. These ads would be played 20 times a day on hourly Basis in
form of Time Check and after every time check the vocal message of Levis will
announced.



Total Cost per city:                                               100,000.00



Total Cities covered:                                     05

                                                                  Karachi

                                                                  Islamabad

                                                                  Lahore

                                                                  Faisalabad

                                                                  Peshawar



Total Cost:                                                        500,000.00




                                                                                       45
Advertising Plan of Levis Strauss Company




Billboards & banners:

Billboards:




                                            46
Advertising Plan of Levis Strauss Company



Billboard of different sizes will be displayed in major shopping areas and locations
near to outlets.


Budget for Billboards: 10000000




Budget for Print Media:

Print media is big mean to convey our message to the larg number of people. For
that the newspapers like DAWN, The Nation, The News, Jang, Express, and Nawa-e-
Waqt are the newspaper on which the advertisement will be shown. Rates and size
are given below:




                                                            Rate of
                                          Size       of     front
Sr.No    Name    of       No. of ads      Advertisemen      Page       Amount Charged
.        Newspapers        /month         t                 ad/day     Monthly

  1      Dawn                  5          27x4               50000           250000

  2      Nawa-e-Waqt            5         27X4               45000           225000

  3      Express               4          27X4               40000           160000

  4      News                  5          27X4               45000           225000

  5      Jang                  5          27X4               40000           200000



                                                                   Total=1060000




                                                                                 47
Advertising Plan of Levis Strauss Company




 Media Strategy


                                            48
Advertising Plan of Levis Strauss Company




Media Strategy:

Media strategy is choice of media to attain desire results from the ad. If our ad made
superb but we fail to select the right media for our ad we cant successful.

We selected the media for few basis, these basis are given below:




Reason to choose Hum TV:

Our target market is not only men or boys we are targeting ladies and children as
well because of wide product range for both genders and all age levels. The bases of
choosing hum TV are:

     Very popular Home entertainment

     Has a good market share

     Young girls and ladies watch dramas and the dramas of Hum TV are very
       popular among them.




Reason to Choose Geo News and Express News:

Now a days Geo News and Express News are most popular news channels and almost
every one watch these channels on routine basis. The time we have chosen for our
ad is very perfect coz the programs like Aj Kamran Khan k Sath and Mere Mutabiq
programs on Geo News are very popular and Kal Tak by Javed Ch is also most viewed

                                                                                   49
Advertising Plan of Levis Strauss Company



TV show. On the other hand they cover a big market share and message through
these channels can reach to maximum audiance. So for these most important
reasons we choose these channels and these programs.

Reason to choose Ten Sports:

No doubts currently Geo sports has launched by the Geo group but this channel due
to live broad casting of all cricket series has same popularity among the market we
are targeting. During the matches almost whole the target market is capture by the
single match and ad will be rum after every 2 or three over which will again and
again reinforce our message that is Jeans is Levis with our ad that will definitely force
to think people about to make a purchase for the actual Jeans.




Reasons to Choose Newspapers:

The reason to choose newspapers is, we can attract more target audience because
the market we are targeting is a regular reader of newspapers and on the other hand
people of all income levels, education and profession read newspapers and it covers
a big target market. The printer ad on from pages with eye catching color scheme
and latest designs and trends of jeans are shown to target audience with our same
reinforcement message that Jeans is Levis. The basic purpose for chosen newspaper
is because it gives single thought for the one topic. When people see again and again
our message with our latest styles and message definitely they will rush towards the
outlets for having the actual jeans.




Reason to Choose Billboards:

Billboards are the very good medium to convey our message to the target audience.
When we display our big billboards on the most famous location which covers the
most important places definitely is will work.

Reason to choose Radio:

Currently we can deliver our message to the large target audience through this
meodium. People while driving, walking, sleeping almost evrytime they listen radio.
So the message can be deliver through the radio easily.

                                                                                      50
Advertising Plan of Levis Strauss Company




                                            51

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28492482 levis-advertising-plan

  • 1. Advertising Plan of Levis Strauss Company Table of Contents Dedication …………………………………………………………………….. 01 Acknowledgement …………………………………….…………………….. 02 Executive Summary ………………………………………………………….. 03 Introduction …………………………………………………………………… 04 History …………………………………………………………………………... 05 Brands ………………………………………………………………………….. 06 Values ………………………………………………………………………….. 09 Vision Statement …………………………………………………………….. 10 Mission Statement …………………………………………………………… 11 Aspiration Statement ……………………………………………………….. 12 Situation Analysis …………………………………………………………….. 14 Competitive Analysis ……………………………………………………….. 14 Current Market Need ………………………………………………………. 15 SWOT Analysis ………………………………………………………………… 17 Objectives …………………………………………………………………….. 20 Scanning Environment ……………………………………………………... 21 1
  • 2. Advertising Plan of Levis Strauss Company Market Segmentation ……………………………………………………. 22 Target Market ………………………………………………………………. 28 Marketing Mix ………………………………………………………………. 30 Product Attributes ………………………………………………………… 31 Brand Positioning …………………………………………………………. 32 Brand Personality …………………………………………………………. 32 Features Analysis Chart ………………………………………………….. 33 Implementation …………………………………………………………… 35 Evaluation ………………………………………………………………….. 38 Budgeting ………………………………………………………………….. 41 Media Strategy ……………………………………………………………. 48 2
  • 3. Advertising Plan of Levis Strauss Company DEDICATION • This humble effort is dedicate to the last Holy Prophet Hazrat MUHAMMAD (PEACE BE UPON HIM) Who is the only perfect ideal of life for human peace. • This struggle is also dedicated to our beloved 3
  • 4. Advertising Plan of Levis Strauss Company PARENTS • By the virtue of whose prayers and show hands are always raised for pray, for our well being, even at this moment of time. ACKNOWLEDGEMENT First of all we would like to thank ALLAH ALMIGHTY, who blessed us the courage to accomplish this project. Apart from the efforts of us, the success of this project depends largely on the encouragement and guidelines of many others. We take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of this project. Then, there is a great contribution of our family members, who supported us with all the aspects at every stage of this project. We would like to show my greatest appreciation to Mr. Ahmad Sohail Khan. We can’t say thank you enough for his tremendous support and help. We feel motivated and encouraged every time we attend his class. Without his encouragement and guidance this project would not have materialized. A pleasure gratitude to 4
  • 5. Advertising Plan of Levis Strauss Company The guidance and support received from all the team members who, was vital for the success of the project. We greatly mention the cooperation of team members. Team of Concept Creators, MBA 3rd, Executive Summary This integrated marketing communications plan is designed for new advertising campaign for Levis Strauss Company. Levis Strauss Company is manufacturer of jeans and many other clothing products. Brands are very famous due to style and quality and people feel prestige while using the products of Levis. The plan includes introduction history of the company and it also includes promotion analysis, corporate strategies, Objectives, relevant advertisings through different mediums like TV, Radio, Newspapers, billboards, budgeting for the entire campaign etc. After then evaluation and finally media plan has described. The overall goals for this plan are:  To inform, persuade and remind the potential customers about its products  Increase awareness and build primary demand  To build strong brand equity. 5
  • 6. Advertising Plan of Levis Strauss Company  Build Company’s image as innovator.  To create bonds between public and Levi Strauss by helping the people.  To create the importance of its products 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 they position the company for future growth. 6
  • 7. Advertising Plan of Levis Strauss Company HISTORY Today, the Levi’s® 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 half- brothers Jonas & Louis in New York. Levi joined their dry goods business. In 18are offering many products according to different segments defined further under segmentation. They are doing business all over the world and expanded their outlets throughout the world. On the other side they are manufacturing their jeans and other products through outsourcing from different countries. In Pakistan Crescent Bahuman Ltd and Nishat Mills are their main manufacturers. The brands that are offering by them are given below under product offer. Product Offerings: 7
  • 8. Advertising Plan of Levis Strauss Company By segmenting their target market they are offering different products to different consumers detail is given below: BRANDS: The products of Levi Strauss & Co are sold under three brands: Levi's®: 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 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 favorite fits and styles in our Red Tab™ and Levi's® Premium collections. 8
  • 9. Advertising Plan of Levis Strauss Company . 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® 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 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. 9
  • 10. Advertising Plan of Levis Strauss Company Levi 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. Other Products offerings” • SHIRTS • COTTON PANTS • ACCESSORIES • BELTS • SUNGLASSES • WALLETS • LADY’S BAGS • JACKETS 10
  • 11. Advertising Plan of Levis Strauss Company • SHOES VALUES: Levi Strauss & Co. has four major core values. These are 1. Empathy 2. Originality 3. Integrity 4. Courage Levi Strauss & Co. says, “Our corporate values -- empathy, originality, integrity and courage -- are the foundation of our company and corporate values -- empathy, originality, integrity and courage -- are the foundation of our company and define who we are. They underlie how we compete in the marketplace and how we behave. Define who we are. They underlie how we compete in the marketplace and how we behave.” 11
  • 12. Advertising Plan of Levis Strauss Company 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 Company’s tradition, closing gaps that may exist between principles and practices and updating some of their values to reflect contemporary circumstances. 12
  • 13. Advertising Plan of Levis Strauss Company 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. 13
  • 14. Advertising Plan of Levis Strauss Company 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. 14
  • 15. Advertising Plan of Levis Strauss Company Situation Analysis Situation Analysis 15
  • 16. Advertising Plan of Levis Strauss Company Levi Strauss and Company is approaching to the saturation of Jean Market. The fast changes in the consumer tastes, competition from both lower and high-end brands, the fast development in the modern distribution and sales technology has brought a continuous lose of market share. A new series of Engineered Jeans has been developed and launched as part of program intending to meet the needs of their major target, in order to regain lost marker share and maintain their position the industry. Their expertise in Jeans and causal dress industry will be fully exploited at world basis. This year, they intended to strengthen the promotion of this new brand. Certain resources will be allocated to their existing brands, to maintain market share of 501, enlarge market share of Dockers and slates. Communication with their customers is important for us. They will also improve their relation with them, and track the changes in the taste and need of their main target market. Information system will also be improved to enhance their ability to adapt the market change. On the other side in the Pakistan Levi Strauss & Co is facing few problems. Here due to decrease n the income level of the people people are not in this condition to buy high priced products of Levi Strauss & Co. Other issue is that the local manufacturers use the tag of highly reputed brands that’s why consumer traped and purchase these products. Completive Analysis: Levi Strauss & Co. was threatened by competition, because barriers of entry were relatively low in the jean market. (excluding the of entry were relatively low in the jean market. (excluding the patent) patent) •Some of Levi Some of Levi’s competitors include: s competitors include:  Calvin Klein  Gap Jeans 16
  • 17. Advertising Plan of Levis Strauss Company  Denim Jeans  Stone age  Tommy Hilfiger •The entrance of new competitors had many effects on Levi’s.  Levi’’s no longer has monopoly power so now they have to set more competitive prices due to that lower profits they gain.  Availability of substitutes firm faces increase in elasticity of demand  The prices of competitor’s products are lower so consumers prefer other brands. So when their consumers purchase products from the competitors its minimizes its market share.  Competitors successfully were able to take from Levi’s market due to heavy advertising and branding. . Branding was especially effective for companies like Calvin Klein that targeted high-end consumers.  Some of the marketing strategies that competitors like Calvin Klein used to differentiate their product and brand included:  Celebrity endorsements (Calvin Klein and Brooke Shields)  Up Up-to to-date European product designs (low rise, tighter)  Advertise jeans as “designer.”  These advertisements were used as a barrier to entry, because of spurious product differentiation. Although Levi’’s jeans may physically the same as its competitors, consumer preferences are affected by brand name. Current Market Need: 17
  • 18. Advertising Plan of Levis Strauss Company Its not just how good a product is that determines if consumers will buy it. Many people find themselves motivated by several factors when that all- important decision to purchase a specific product is made. For us it is as simple as comparing the prices, but many others there are many emotional factors that weigh heavily on their decision. Does this product make me feel good about myself? What image does this product present me with? What effect will owning this about myself? Consumers ask themselves questions such as these when making decisions about whether or not to buy something. Do people want to be like someone they see in as advertisement? This question is the basis for marketing, particularly in the clothing industry. Buyers over the years have liked the rugged. Confident, individualistic and laid back image that Levi’s give them. This image, which has been created through the company’s intelligent marketing scheme, has allowed to company to maintain its prosperity over the year. SWOT Analysis: Bases on the Levis Strauss unique resources and capabilities as to be the first mover in the industry and one of the ten top US recognized brand name has continue developing new products (as the Jacket with MP3) and looking after new markets this will allow to adapt to the fast consumers taste changes and to move away from the saturation of the jeans market. Strengths: 18
  • 19. Advertising Plan of Levis Strauss Company  History  Pioneer in Jeans  Levi’s enjoys high brand equity. People all around the world recognize the brand name.  Levi’s products are unique and innovative in the style.  A lot of variety is offered by Levi’s ranging from sunglasses to skirts and shirts.  Diversity  The products are renowned and are considered as the most durable i.e. the long lasting products.  Levi’s follows a high standard of quality.  Expertise in jeans industry  Finance and access to international markets  Its highly expertise and intelligent management  Distribution channels and Global sourcing Weaknesses:  Levi’s 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.  Levi’s does not provide any services like free delivery etc  Lack of control on distribution decisions ( Retailers pressure to stop selling on web) 19
  • 20. Advertising Plan of Levis Strauss Company Opportunities:  Levi’s can do more well in the women section. This section is give less importance as compared to the men section.  The kid’s 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 of customers.  Low manufacturing and production cost in various international markets like Pakistan and Bangladesh. Threats:  Saturation of jeans market.  Local competitors in expanded markets  The threats that Levi’s faces are the competitors. Although it does not have any competitor in Pakistan but it does have some competitors at the global level.  Fast change in the consumer taste.  Economic downfall in many countries like Pakistan. 20
  • 21. Advertising Plan of Levis Strauss Company KEY PLANNING DECISIONS Marketing Objectives:  To improve leadership market position and superior product and service  To maintain and protect the global brand  Increase the market share in products by annual average of 12.8% in the next five years.  Also, to maintain the global market share of denim products in the same period. 21
  • 22. Advertising Plan of Levis Strauss Company Advertising 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.  To create the importance of its products SCANNING THE MARKETING ENVIRONMENT: Like other successful companies, Levi’s also has realized that the marketing environment presents a never-ending series of opportunities and threats. The major responsibility for identifying significant changes in the macro environment falls to a company’s marketers. More than any other group in the company, the marketing managers of Levis are the trend trackers and opportunity seekers. Many opportunities are found by identifying trends (directions or sequences of events that have some momentum and durability) and mega trends (major social, economic, political and technological changes that have long-lasting influence). Within the 22
  • 23. Advertising Plan of Levis Strauss Company rapidly changing global picture, the marketers of Levi’s are monitoring the following six major “Environmental Forces”: • Demographic Environment • Economic Environment • Natural Environment • Technological Environment • Political-Legal Environment • Social-Cultural Environment Products, Positioning, and Market Segmentation: Advertising professionals realize that the heart of any campaign is the product and the position it holds in people's minds. Products and their brand names are newsmakers themselves. Understanding the complexities of a brand identity and its position is no easy task. One of the most controversial areas of product concepts is the brand extension. A new product gets to share the name of an older, established brand. Early theorizing suggested that brand extensions would sap market clout from the established product, but these fears proved groundless. Today brand extensions occur not only within the company, but companies are licensing their brand names to all kinds of products in the hope of increasing brand awareness. Target Audience- basis for segmentation: Market Segmentation: 23
  • 24. Advertising Plan of Levis Strauss Company Segmentation is the basis for developing targeted and effective marketing plans. Furthermore, analysis of market segments enables decisions about intensity of marketing activities in particular segments. A segment-orientated marketing approach generally offers a range of advantages for both, businesses and customers. 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 considerable change over time. The readings in this section exemplify areas of rapid change. BASIS OF MARKET SEGMENTATION Levis Strauss Company segments its market on different basis. The detail of each segment given below in detail:  Demographic Segmentation There’s little excuse for being surprised by demographic developments. The main demographic force that marketers monitor is population, because people make up markets. Marketers are keenly interested in the size and growth rate of population in cities, regions, and country; age distribution and ethnic mix; educational levels; household patterns; regional characteristics and movements. The company makes clothes foe men, women, children & teens. So everyone is a potential customer for LEVI’S. LEVI’S generally appeals to more mature generations not necessarily looking to make fashion statement. LEVI’S makes an effort to appeal to all Customers in one way or another, which has been a key to their success over the years. Assuming that the world population is growing LEVI’S can infer that the market for jeans is also growing. Consist of dividing the market into groups bases on variables such as age, gender, family size, income, occupation, education, religion, race and the 24
  • 25. Advertising Plan of Levis Strauss Company nationality. Levis Strauss Company’s main segmentation variables are summarized below:  Age: Few years ago Levis Strauss Company segmented its customers according to their age. Its provides all type of brands for the people of all ages for example Levis Strauss Company has huge product line from children to old people. The target audience is the young people who wear jeans as fashion. On the other hand the because LS & Co offer products for all ages so mature and old people are also come under age segmentation of target audience.  Gender: Gender segmentation of Levis Strauss Company is for male and females. They manufacture brands for both genders.  Income:  High income people are come in this segmentation. The prices of Levis Strauss Company is high so they only target those people who earn a good income and afford to purchase the brands.  Occupations: In the occupational segmentation they have segmented their market in different ways. Students, professionals, business men & women and executives.  Education: Well educated people. • Geographic Segmentation 25
  • 26. Advertising Plan of Levis Strauss Company Geographic segmentation calls for dividing the market into different geographical units such as nation, states, regions, countries, cities, or neighborhoods. The company can operate in one or a few geographic areas, or operate in all but pay attention to local variations. Levis Strauss Company has segmentise ite market accordint to region that are given below:  Levi Strauss Americas Levis Strauss Americas in the company’s largest region. The Americas region markets products under the Levi's®, Dockers® and Levi Strauss Signature® brands and includes four businesses: Levi Strauss U.S., Levi Strauss Canada, Levi Strauss Mexico, and Levi Strauss Latin America.  Levi Strauss Europe, Middle East and North Africa Levi Strauss Europe, Middle East and North Africa (LSEMA) is responsible for designing, manufacturing and Countries in this Region: LSEMA markets and sells products in the following countries: Albania, Algeria, Andorra, Austria, Azerbaijan, Bahrain, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Denmark, Egypt, Estonia, Finland, France, Germany, Greece, Georgia, Hungary, Iceland, Ireland, Israel, Italy, Jordan, Latvia, Liechtenstein, Lithuania, Luxembourg, Kazakhstan, Kuwait, Kyrgyzstan, Malta, Mauritius, Moldova, Monaco, Montenegro, Morocco, Northern Cyprus, Norway, Oman, Poland, Portugal, Qatar, Romania, Russia, San Marino, Saudi Arabia, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, The Czech Republic.  Levi Strauss Asia Pacific Division: Levi Strauss & Co.'s Asia Pacific Division is comprised of subsidiary businesses, licensees and distributors throughout Asia Pacific, the Middle East and Africa 26
  • 27. Advertising Plan of Levis Strauss Company The division sources, manufactures and markets Levi's®, Dockers®, and Levi Strauss Signature® products through affiliates. Countries in this Region: India, Indonesia, Japan, Singapore, Pakistan, Philippines, Korea, Malaysia, Taiwan, Vietnam. • Psychographic Segmentation Basis of Psychographic Segmentation are given below:  Life style  Activities  Interests  Personality  Values • Behavioral Segmentation In this segmentation following segments are consider by Levi Strauss Company:  Occasions  Brand loyalty  Usage rate  Benefits Segmentation Data Variables 27
  • 28. Advertising Plan of Levis Strauss Company Geographic World region Asia Country Pakistan Cities All major cities of Pakistan Density Urban Demographic Age All Ages Gender Male, Female Family Life Cycle Young , Single; Young, Married, no children; Young, Married with children; Older, Married with children; Older, Married with no children under 18; Older, Single; Other Income 15000 and above Occupation From middle class to upper class Education Schools, College, Universities Religion Major religion of Islam, Christianity Race Asian Nationality Pakistani Psychographic Social class Working class, Middle class, Upper class. Lifestyle Actualizes, Fulfilled, Believers, Achievers, Strivers, Experience’s makers and Strugglers 28
  • 29. Advertising Plan of Levis Strauss Company Behavioral Occasions Parties, Birthdays, Regular Islamic Occasions Benefits Quality, Style, prestige, Durability Attitude towards product Positive User Status Regular users and new users Target Market: Once the firm has identified its market-segment opportunities, it has to decide how many and which one to target. Levi Strauss has oppertunies in different segmentation. They target its market according to their brands and relating segmentation. In evaluating different market segments, the firm must look at two factors: the segment’s overall attractiveness and the company’s objective and resources. Because we are making advertising plan to keep the market of 501® JEANS targets its market by evaluating different segments. Mostly Levi’s targets its market among the following classes: • Upper Class People who belong to this class they always to experience those products which provide them prestige and quality products. Due to high income class they do not consider the price factor. So Levi’s is the brand that has eared popularity throughout the world and it is symbol of prestige and quality which is demanded by this class. So Levi Strauss Company is targeting this class and people from all age rang and both genders will be targeting from this class. 29
  • 30. Advertising Plan of Levis Strauss Company • Upper Middle Class In this class people having good education professionals and corporate executives and business owners belongs. They have a great touch with the world and have good income. They can afford to wear costly products. So people from this class will also targeting. Target 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. Through their good quality products and best services they always attract customers. 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: JEANS is fulfilling the conditions for effective segmentation. Segments are strong enough to make profit. Segments of company are measurable Limitation of Segmentation: 30
  • 31. Advertising Plan of Levis Strauss Company Because of segmentation, Levi’s faces some limitations. Lack of awareness in middle class. Company has to pay extra cost for multi-advertisement. In Pakistan they have to face several Cultural Barriers. Marketing Research: According to Levi’s marketing logistic manager, their company conducts a research to know • What’s in trend? • What are the needs of customers? Sources of Data: Levi’s 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. 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 seller’s view of the marketing tools available for influencing buyers. PRODUCT: “Product means set of tangible and intangible attributes which may include packaging, color, price, quality and brand plus the seller’s services and reputation. A product may be a place, service, good or promotion.” 31
  • 32. Advertising Plan of Levis Strauss Company 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. 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 product • Variety • Features • Design • Color • 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: Competitors: 32
  • 33. Advertising Plan of Levis Strauss Company 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. • CK • GAAP Jeans • Stone age • Tommy Helifiger • Our 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. Brand Positioning: Positioning differs between countries and market segments. For example, in America and much of Europe the emphasize is on jeans as casual attire. In contrast, Pakistanis wears indicates to social fashion awareness and high status, For adolescents and youngsters adults ( 14 to 24) who want casual attire, engineers jeans by Levis provide a unique fit and functional status, unlike other competitors. Brand Personality of Levi’s: Brand personality is a set of human charectraristics associated with a brand. Personality is how the brand behaves. Refers to the outcome of all the consumer’s experiences with the brand, in other words, the brand personality is the weighted average of previous impressions. In the consumer’s mind, these impressions merge to form an overall concept of what to expect from brand. “We can define brand personality of Levi’s as Rebellion, sensuality and being cool.” 33
  • 34. Advertising Plan of Levis Strauss Company Features Analysis of Levi’s with its competitors: Sr Important to Levi’s CK Gap Stone Age TH . Prospect 1 Quality + + - + + 2 Price - - - - + 3 Style ++ + + + - 4 Availability + - + + -- 5 Prestige ++ + + + + Competitive Advantages  Levi’s never compromises on quality.  Levi’s products are available in cities and towns where it has more demanded.  Levi’s is using the latest technology in its production units.  Levi’s offers a wide range of products available in its outlets. 34
  • 35. Advertising Plan of Levis Strauss Company Implementation 35
  • 36. Advertising Plan of Levis Strauss Company Execution Plan TV Ad Levi’s is very famous all over the country, people who wears jeans almost know that Levi’s products are very unique and a name of quality and prestige. For the advertising campaign of Levi’s, a ad is also made in order to give a live message to the audience about that the people who wears jeans should only wear LEVI’S jeans because the actual jeans only made by them . In the ad initially we have not shouted a video ad as run in the foreign countries because in this phase we only want to tell people that JEANS IN LEVI’S. Our message through our ad campaign will force people to think that the jean that they wear is not the actual jeans. In our ad we have shown just products especially jeans pints by using the photos to show people the offerings of Levi’s. Print Media 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 36
  • 37. Advertising Plan of Levis Strauss Company 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 Radio Because students and young blood is one the main segment of our campaign and now a days radio is very important mean to reach them because due to short time to see TV and availability of FM radio in almost every cell phones model we can easily send our message. The musical ad that will give the message about the outlet and the latest products availability will be delivered through the radio. The message will again remind the target audience our core message that “ JEANS IS ONLY LEVIS”. Internet:- Levis provides up-to-date information to their customers through electronic media i.e. from their website. Billboards & banners: The same print media ad will be show in these selected medium to create long term brand loyalty. The billboards having pictures of products will be displays on the important places of major cities where outlets are opened. The message that will shown through billboards and banners will again the same that “ JEANS IS LEVI’S”. When people see this message again and again where they go they will definitely feel that the jeans they wear is not the actual jeans and they will rush towards the Levi’s outlets to have the real jeans. 37
  • 38. Advertising Plan of Levis Strauss Company Evaluation 38
  • 39. Advertising Plan of Levis Strauss Company Evaluation: After implementation our plan our next step that is very important is to evaluate our campaign to check our track whether we are going towards the right direction which we planned or our targets will not achieve through this campaign. The evaluation strategies that will be use are 1. Before execution 2. After Execution Now we tell you how this evaluation will be run. Before Execution: Before execution evaluation strategy helps to make decision wither we should run this ad or not. Many factors have to observe and after evelating the elements that were under observation decisions are made. Before execution we will observe our ad on different perameters that are given below: Storyboard Idea: For TV ad this methodology is very effective. Ad has being evelauted that what message is being conveyed and what results or how effective the message is. The actual purpose of this methodology to check that the message we have developed through our ad is receiving in the same sense or not. Behavior Analysis: This strategy has made to check the behavior of people when the ad has being exposing to them. Observers are there to watch the behavior and expressions of 39
  • 40. Advertising Plan of Levis Strauss Company viewers and see whether they are receiving the actual idea and how they perceive the ad. Questionnaire Technique: In this method ad has exposed to viewers and then asked them to answer the questions given in the quetionair and then match the answers with the benchmark answers. If the answers are matcing with the benchmark answers then the ad has worked. After execution: After execution evaluation used to check wether the compieghn is getting the planned outcomes or not. Few methodologies used to evaluate the ad. Those techniques are given below: Sales volume: After the execution sales have checked. The sales of 30 days after execution of ad has compared with the previous few months sales volume if the sales volume has increase then the ad has done what we are expecting from it. Feelings analysis: After execution of ad the feelings of people about the brand will also check. Whether the campaign has created the good image of the brand or not. Results of Evaluation: After the evaluation phase we evaluate that the desires results that we were expecting from our campaign are meeting. The sales volume has increase and the popularity of the product has also increase. The customers who were detracted by the competitors were coming back. The purpose of campaign to tell the people that 40
  • 41. Advertising Plan of Levis Strauss Company the JEANS IS LEVIS and making this phrase very popular among the consumers is achieving through this campaign. Budgeting 41
  • 42. Advertising Plan of Levis Strauss Company All You Can Afford: Levis Strauss Company has a very big market and they sell their products almost all over the word. Their advertising budget in every region is very high and invests a big share of their earnings on the advertising. They made very costly ads because usually in their ads they use big stars like Brad Pitt and Shahid Kapoor in their ads. Their brand ambassadors are very renowned personalities and they charge a big amount for it. So the advertising budget has to set high. The basic purpose for choosing this method in Pakistan is that they are running advertising campaign very first time in the country. So to choose the best media and covering all targeted location through different kind of Medias to reach the target audience. The approaximately totoal budget for this campaign is 8 millions but it can be change according to situation. The allocation of budget to the different media are given below: The channels for TV ad are selected:  Geo News  Hum TV  Express News  Ten Sports 42
  • 43. Advertising Plan of Levis Strauss Company Detail of time when the ad will run, duration , rates and approximately budget is given below: Hum TV: Timing Pricing Basis of Days Tim Total Cost Total Cost Selection to run e to per day in run campaign per Day 19:30- 25000/30 This is 10 5 75000 750000 22:00 sec Prime time includes major running dramas TOTAL 750000 Express News: 10:00- 10000/30 Mostly youth 10 30 sec 60000 600000 00:00 sec class at this Days ad 6 time watch with time TV for little during external time this time information variati like politics, ons economy, on national and select international ed 43
  • 44. Advertising Plan of Levis Strauss Company Total 60000 Geo News: 10:00- 10000/30 Mostly youth 10 30 sec 60000 600000 00:00 sec class at this Days ad 6 time watch with time TV for little during external time this time information variati like politics, ons economy, on national and select international ed Total 60000 Ten Sports: Timing Pricing Basis of Days to Time Total Total Cost Selection run to run Cost in campaign per per Day day During 25000/3 Pakistani All ODI 25/ 62500 3125000/ for the 0 sec nation love Series each 0 one series cricket cricket and match approximatel ODI both genders y Series and people from all age 44
  • 45. Advertising Plan of Levis Strauss Company levels see cricket matches. Total 3125000 app Cost of Radio: Levis is not only advertising on Television but they are also advertising on radio. They play the vocal ads on Fm 90 and 89. Advertising on radio is basically for the people who are on roads; on the other side young generation is very good listener of fm. Due to fm availability in the cell phones, so the message can be easily convey to them through this medium. These ads would be played 20 times a day on hourly Basis in form of Time Check and after every time check the vocal message of Levis will announced. Total Cost per city: 100,000.00 Total Cities covered: 05  Karachi  Islamabad  Lahore  Faisalabad  Peshawar Total Cost: 500,000.00 45
  • 46. Advertising Plan of Levis Strauss Company Billboards & banners: Billboards: 46
  • 47. Advertising Plan of Levis Strauss Company Billboard of different sizes will be displayed in major shopping areas and locations near to outlets. Budget for Billboards: 10000000 Budget for Print Media: Print media is big mean to convey our message to the larg number of people. For that the newspapers like DAWN, The Nation, The News, Jang, Express, and Nawa-e- Waqt are the newspaper on which the advertisement will be shown. Rates and size are given below: Rate of Size of front Sr.No Name of No. of ads Advertisemen Page Amount Charged . Newspapers /month t ad/day Monthly 1 Dawn 5 27x4 50000 250000 2 Nawa-e-Waqt 5 27X4 45000 225000 3 Express 4 27X4 40000 160000 4 News 5 27X4 45000 225000 5 Jang 5 27X4 40000 200000 Total=1060000 47
  • 48. Advertising Plan of Levis Strauss Company Media Strategy 48
  • 49. Advertising Plan of Levis Strauss Company Media Strategy: Media strategy is choice of media to attain desire results from the ad. If our ad made superb but we fail to select the right media for our ad we cant successful. We selected the media for few basis, these basis are given below: Reason to choose Hum TV: Our target market is not only men or boys we are targeting ladies and children as well because of wide product range for both genders and all age levels. The bases of choosing hum TV are:  Very popular Home entertainment  Has a good market share  Young girls and ladies watch dramas and the dramas of Hum TV are very popular among them. Reason to Choose Geo News and Express News: Now a days Geo News and Express News are most popular news channels and almost every one watch these channels on routine basis. The time we have chosen for our ad is very perfect coz the programs like Aj Kamran Khan k Sath and Mere Mutabiq programs on Geo News are very popular and Kal Tak by Javed Ch is also most viewed 49
  • 50. Advertising Plan of Levis Strauss Company TV show. On the other hand they cover a big market share and message through these channels can reach to maximum audiance. So for these most important reasons we choose these channels and these programs. Reason to choose Ten Sports: No doubts currently Geo sports has launched by the Geo group but this channel due to live broad casting of all cricket series has same popularity among the market we are targeting. During the matches almost whole the target market is capture by the single match and ad will be rum after every 2 or three over which will again and again reinforce our message that is Jeans is Levis with our ad that will definitely force to think people about to make a purchase for the actual Jeans. Reasons to Choose Newspapers: The reason to choose newspapers is, we can attract more target audience because the market we are targeting is a regular reader of newspapers and on the other hand people of all income levels, education and profession read newspapers and it covers a big target market. The printer ad on from pages with eye catching color scheme and latest designs and trends of jeans are shown to target audience with our same reinforcement message that Jeans is Levis. The basic purpose for chosen newspaper is because it gives single thought for the one topic. When people see again and again our message with our latest styles and message definitely they will rush towards the outlets for having the actual jeans. Reason to Choose Billboards: Billboards are the very good medium to convey our message to the target audience. When we display our big billboards on the most famous location which covers the most important places definitely is will work. Reason to choose Radio: Currently we can deliver our message to the large target audience through this meodium. People while driving, walking, sleeping almost evrytime they listen radio. So the message can be deliver through the radio easily. 50
  • 51. Advertising Plan of Levis Strauss Company 51