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Levi's project


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Levi's project

  1. 1. Comparative analysis of study on customer buying preference & satisfaction towards Levi’s StraussIn partial fulfilment of marketing research course of PGDM programme.Project guided by: Submitted by:PROF: Kamal Gupta Group -5(Associate Professor) Firoj Mohammad Shah (17) Jyoti Smriti (18) Aashutosh Giri (50) Shubhangie Awasthie (62)20121
  2. 2. DECLARATIONWe, Group-5(PG11-13) hereby declare that this project report is the record of authentic workcarried out by us and has not been submitted to any other university or institute for the awardof any degree/diploma etc.Group-5PGDM2011-13Date: 06/April/20122
  3. 3. ACKNOWLEDGEMENTThrough this acknowledgment we express our sincere gratitude toward all those people who have helped us in thepreparation of this project which has been a learning experience.Our sincere thanks to Prof. Kamal Gupta under whose able guidance and kind cooperation we are able tocomplete the project work titled “customer buying preference & satisfaction towards Levi’s Strauss’’.We sincerely thanks help provided by Inmantec business school, Ghaziabad which provided us the necessarymaterial for completion of this project.3
  4. 4. Table of ContentCHAPTER TITLE PAGE NONO.CHAPTER 1 Introduction 8 CHAPTER 2 Objective 9CHAPTER 3 Company Profile 10CHAPTER 4 Levi’s Brands 11-17CHAPTER 5 Levi’s portfolio analysis 18-20CHAPTER 6 Major Competitors 21CHAPTER 7 SWOT Analysis 22-23CHAPTER 8 4P’s of Levi’s Strauss 24-29CHAPTER 9 Research Methodology 30CHAPTER 10 Research Design 31-32CHAPTER 11 Sampling Design 33-34CHAPTER 12 Data Collection 35-36CHAPTER 13 Tools & Techniques 37-CHAPTER 14 Data Analysis 38-45CHAPTER 15 Hypothesis Testing 46-60CHAPTER 16 Finding 61CHAPTER 17 Limitation 62CHAPTER 18 Conclusion 63CHAPTER 19 Recommendation 64CHAPTER 20 Annexure 65-67 Questionnaire Bibliography4
  5. 5. List of tableTITLE PAGE NO.Table 1.1 47Table 1.2 48Table1.3 49Table1.4 50Table1.5 51Table 1.6 52Table 1.7 53Table 1.8 54Table 1.9 55Table 1.10 56Table 1.11 57Table 1.12 58Table 1.13 59Table 1.14 605
  6. 6. List of graphsTITLE PAGE NO.Graph 1.1 40Graph 1.2 41Graph 1.3 42Graph 1.4 43Graph 1.5 44Graph 1.6 456
  7. 7. Executive SummaryThe project was done to obtain the current level of satisfaction of Levis jeans users. So also, what aretheir preferences in buying jeans? Both coupled yielded reasons for current level of satisfaction andmeans to increase it. There was insufficient secondary data due to which primary data was collected. The projectwas conducted within the geographical region of Opulent mall, Ghaziabad.With a sample size of 200 respondents. The data collected was analysed with the help ofStatistical tools like frequency charts like bar and pie were used to analyse the data. The findingsanalysed and based on the analysis conclusions were drawn and requisite recommendations wereprovided. These included: 1) concentrating more on advertising 2) Increasing availability through localoutlets3) Reaching the economy segment etc.7
  8. 8. IntroductionFounded in 1853 by Bavarian immigrant Levi Strauss, Levi Strauss& Co. (LS&CO.) is one of theworlds largest brand-name apparel marketers with sales in more than 100 countries. There is no other companywith a comparable global presence in the jeans and casual pants markets. Their market-leading apparelproducts are sold under the Levis®, Dockers® and Levi Strauss Signature brands. In 1873, Levi Strauss andNevada tailor Jacob Davis pat ended the process of putting rivets in pants for strength, and the world’sfirst jeans Levis® jeans were born. Today, the Levi’s® trademark is one of the most recognized in theworld and is registered in more than 160 countries. Descendants of the family of Levi Straussprivately hold the company. Shares of company stock are not publicly traded. Shares of Levi StraussJapan K.K.,the companys Japanese affiliate, are publicly traded in Japan. (For additional financialinformation, visit our "News and Financial “section).The company employs a staff ofapproximately 12,400people worldwide, including approximately 1,500 people at itsSanFrancisco, California headquarters. Levi Strauss & Co. is a worldwide corporation organized into threegeographic divisions: Levi Strauss, the Americas (LSA), based in the San Francisco headquarters LeviStrauss Europe, Middle East, and Africa (LSEMA), based in Brussels Asia Pacific Division (APD),based in Singapore.8
  9. 9. ObjectiveA Study on Customer Satisfaction & Brand Performance of Jeans Trouser Jeans trouser has beeninnovated during 1950s for a coal mines worker by Denim. By looking over the popularity ofjeans trouser and changing trend in fashion made it essential to understand the factor which isdesirable to make customer satisfied. The objective of the study was to know the characteristicand significance of Fashion & offer, generic requirement, efficient quality, Value for money,services and maturity of person which may generate satisfaction in the customer’s mind. Wehave conducted survey and used the data collected through respondents. Our sample size was200 and our all respondent were from city of GHAZIABAD (U.P), India. We used suitablemultivariate technique to conclude the result of survey.1) To analyse factors influencing consumers decision to buy branded jeans.2) To analyse the factors influencing perception and buying decision of consumers.3) Measure the level of satisfaction of the brand from its competitors.4) To study and measure satisfaction level of Levis jeans users.5) To suggest alternatives for enhancing customer satisfaction.9
  10. 10. Company ProfileLevi Strauss & Co. is a worldwide corporation organized into three geographic divisions: LeviStrauss Americas (LSA), based in the San Francisco headquarters; Levi Strauss Europe, MiddleEast and Africa (LSEMA), based in Brussels; and Asia Pacific Division (APD), based inSingapore. The company employs a staff of approximately 10,500 people worldwide. The coreLevis was founded in 1873 in San Francisco, specializing in riveted denim jeans and differentlines of casual and street fashion.From the early 1960s through the mid-1970s, Levi Strauss experienced explosive growth in itsbusiness as the more casual look of the 1960s and 1970s ushered in the "blue jeans craze" andserved as a catalyst for the brand. Levis, under the leadership of Walter Haas Jr., Peter Haas, EdCombs, and Mel Bacharach, expanded the firms clothing line by adding new fashions andmodels, including stone-washed jeans through the acquisition of Great Western GarmentCo.(GWG), a Canadian clothing manufacturer, and introducing Permanent Press trousers underthe Starkest name. The company experienced rapid expansion of its manufacturing capacity fromfewer than 16 plants to more than 63 plants in the United States from 1964 to 1974 and 25overseas. Levis factory expansion was accomplished without a single unionized employee. Theuse of "pay for performance" manufacturing at the sewing machine operator level up. As a result,Levis plants were perhaps the highest performing, best organized and cleanest textile facilitiesof their time. Levis even piped in air conditioning for the comfort of Levis workers into its pressplants, which were known in the industry to be notoriously hot.2004 saw a sharp decline ofGWG in the face of global outsourcing, so the company was closed and the Edmontonmanufacturing plant shut down.[4] The Dockers brand, launched in 1986[5] which is sold largelythrough department store chains, helped the company grow through the mid-1990s, as denimsales began to fade. Dockers were introduced into Europe in 1993. Levi Strauss attempted to sellthe Dockers division in 2004 to relieve part of the companys $2 billion outstanding debt.Launched in 2003, Levi Strauss Signature features Jeanswear and casualwear. In November2007, Levis released a mobile phone in co-operation with ModeLabs. Many of the cosmeticattributes are customizable at the point of purchase. During the launch of Levis Curve ID jeans,Levi launched a 5 week integrated marketing campaign.10
  11. 11. BrandsThe products of Levi Strauss & Co are sold under three brands: 1. Levis®Since their invention in 1873, Levis® jeans have become one of the mostsuccessful and widely recognized brands in the history of the apparel industry 2. Dockers®Dockers® brand, which pioneered the movement toward business casual, has led the U.S.khakicategory since the brands 1986 launch, and is now available in numerous countries. 3. Levi Strauss signatureIn 2003 the launch of the Levi Strauss Signature™ brand, giving value consumershigh-quality and fashionable clothing from a company from which the customer trust.11
  12. 12. Values of Levi StraussLevi Strauss & Co. has four major core values. These are- Empathy-Originality-Integrity-Courage Levi Strauss & Co. says, “Their corporate values -- empathy, originality, integrity andcourage -- 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 underliehow they compete in the marketplace and how they behave. Define who they are. They underliehow they compete in the marketplace and how they behave.12
  13. 13. Mission StatementThe mission of Levis Strauss & Co. is to sustain responsible commercial; success as a globalmarketing company of branded apparel. They must balance goals of superior profitabilityand return on investment, leadership market positions, and superior products andservices. They will conduct our business ethically and demonstrate leader ship in satisfying ourresponsibilities to our communities and to society. Their work environment will besafe and productive and characterized by fair treatment, teamwork, open communications,personal accountability and opportunities for growth and development. Aspiration statementThey want a company that make them proud of and committed to, where allemployees have an opportunity to contribute, learn, grow and advanced based onmerit, not politics or background. They want their people to feel respected, treatedfairly, listened to and involved. Above all, they want satisfaction fromaccomplishments and friendships, balanced personal and professional lives, and to have fun inour endeavours. Vision statementWhen LS & Co. describe the future of Levi they are talking about a building on the foundationthey have inherited: affirming best of their Company’s tradition, closing gaps that may existbetween principles and practices and updating some of their values to reflect contemporary. Scanning the market environmentLike other successful companies, Levi’s also has realized that the marketing environmentpresents a never-ending series of opportunities and threats. The major responsibility foridentifying significant changes in the macro environment falls to a company’s marketers. Morethan any other group in the company, the marketing managers of Levis are the trend trackers and13
  14. 14. opportunity seekers. Many opportunities are found by identifying trends (directions or sequencesof events that have some momentum and durability) and mega trends (major social, economic,political and technological changes that have long-lasting influence).Within the rapidly changingglobal picture, the marketers of Levi’s are monitoring the following six major “EnvironmentalForces”:Demographic EnvironmentEconomic EnvironmentNatural EnvironmentTechnological EnvironmentPolitical-Legal EnvironmentSocial-Cultural EnvironmentMarket Segmentation Market SegmentationMarket segmentation is the selection of groups of people who will be most receptive to aproduct. The most frequent methods of segmenting include demographic variables such as age,sex, race, income, occupation, education, houseold status, and geographic location; psychographic variables such as life-style, activities,interests, and opinions; product use patterns; and product benefits. Much segmentation involvescombinations of these methods. No matter how segments are defined, however, they arecharacterized by considerable change over time. The readings in this section exemplify areas ofrapid change.14
  15. 15. Basis of market segmentation basis of market segmentationDemographic SegmentationGeographic SegmentationPsychographic SegmentationBehavioural SegmentationTargetMarket:JEANS targets its market by evaluating the wants of customers. Mostly Levi’s targets its marketamong the following classes:Upper ClassUpper Middle Class15
  16. 16. Target Market StrategyTarget market strategy adopted by Levis is basically on having long-term relations with theircustomers and to provide them with better product.Benefits of Segmentation: Levis has got customer oriented approach by segmentation. Company is promoting its productseffectively within segments by print media as well as electronic media, e.g. Newspapers,Signboards, Television commercials, Internet, etc. Company is providing their customers withstylish 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 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 severalCulture problems.16
  17. 17. Marketing mixThe marketing mix is the set of marketing tools the firm uses to pursue its marketing objectivesin the target market. Marketing-mix decisions must be made for influencing the trade channels aswell as the final consumers. McCarthy classified these tools into four broad groups that he calledthe four Ps of marketing: product, price, place and promotion. Note that the four Ps represent theseller’s view of the marketing tools available for influencing buyers.17
  18. 18. Levi’s portfolioanalysisLevi’s corporate strategy involves a number of businesses, so managers can manage thiscollection or portfolio of businesses by using a corporate portfolio matrix. BCG MatrixA strategy tool that guides resource allocation decisions on the basis of market share and growth rate of SBU’s.Boston Consulting Group introduced the idea of BCG matrix that an organization’s businessescould be evaluated and plotted using a 2*2 matrix to identify which ones offered high potentialand which ones were a drain on organizational resources.Horizontal AxisThe horizontal axis represents market share which is evaluated as low or high.Vertical Axis:The vertical axis indicates anticipated market growth which is also evaluated as low or highCategoriesBased on its evaluation, the LS & CO.’s businesses are placed in the following:Stars (High Growth, High Market Share)“Stars include the businesses which are in a fast growing market and hold a dominant share ofthat market.” Dockers® come under the head of stars as it is the major source of income forthecompany.18
  19. 19. Cash cows (Low Growth, High Market Share)Businesses in this category generate large amounts of cash, but their prospects for future growthare limited.” The women apparels has got a low growth and high market share so it comes underthe Cash Cows headQuestion marks (High Growth, Low Market Share)These businesses are in an attractive industry but hold as mall market share percentage.19
  20. 20. Anoff’s MatrixFrom the analysis, it is shown that in order to capture the sales objective LEVI’S must choose thefollowing growth strategies: 1. Introducing existing products in new marketsin order to extend the product life cycles of different product lines i.e. Russia, and central Europe. In order to do thatthey have to identify the potential users and to seek correct distribution channels in that location in accordance withother variables of the marketing mix. 2. Developing new products for the existing markets:Such as development of big pockets for the CD players or the creation of new engineered jeans.McKinsey’sMatrix suggests that LEVI’S having relative medium market attractiveness (big potential market but at the sametime several competitors and low entry barriers) and high relative business strength’s based on the LEVI’S brandand expertise, should invest and grow .According to McDonald, first, LEVI’S has to identify and exploit growthsegments as it is shown with Dockers. Second, it has to emphasize product quality in order to avoid “commodity”competition. And finally, it has to systematically improve productivity and profitability by situating the productionfacilities in the most cost efficient place. Invest heavily in the most attractive markets.20
  21. 21. Major CompetitorsThey are much proud to say with surety that their products completely satisfy their consumers.That’s why they don’t face much competition in their business. But yet there are somecompetitors.Pepe JeansLeeds (US Apparels)Gaap JeansCambridgeTheir prices are not influenced by the competitors.Such a stuff, design and fashion which don’t have the enough sales are recall back to thecompany. Again company issues this stuff to their own outlets for sale at discount prices.21
  22. 22. SWOT AnalysisStrengths 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.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.Weakness Levi’s products are considered as very expensive. Therefore a large percentage of people arereluctant tobuy 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 etc22
  23. 23. OpportunitiesLevi’s can do more well in the women section. This section is give less importance as comparedto the men section.The kid’s section, which has been started from few years, should also be given proper attentionto gain customers.Sales promotion can be increased by increasing the advertisements expenses so as to enjoy alarge number of customers.ThreatsLikely entry of new competitors.Rising sales of substitute products.Slower market growth.Adverse government pressures.23
  24. 24. 4P’s of Levi’s StraussPriceIt can be simply defined as: “The currency value charged to a Client by the company for aproduct or service”. Is one of the most important elements of the marketing mix, as it is the onlymix, which generates a turnover for the organization? The remaining 3ps are the variable costfor the organization. It costs to produce and design a product, it costs to distribute a product andcosts to promote it.List Price:Their all products are sold at listed price, which are settled by the LevisCompany (Singapore).There is no discount to offer.Credit Sales:They also deal with credit sales, but we don’t overcharges to the customers, we pay it our self tothe bank (3 %). Products are only sold for cash or on credit cardsDiscount:They don’t give the discount to our customers even to the employees of the Levis. Their pricesare fixed.Payment Period & Credit Tr s em:Payment Period & Credit Terms are settled by the company.Price Determination:During the determination of the price company not considered the competitors, but the standardthat is used is considered .Their price is influenced by the following factors:-Cost of the productAffordble for the target marketDemand of the product Uniqueness and innovative features of the products.24
  25. 25. ProductRed tab jeans offers traditional cutsSilver Tab jeans define fashion looks with a background of qualityLevi’s jeans expanded its fashion designs not only in men and women apparels, but also in kidswear.PlaceVast distribution channels spread all over the worldIn Asia it has the brand distribution in the countries like China, Guam, India & JapanIn India, its products are distributed by Mayur marketing, which is headquartered at New Delhi.Promotion Aggressive campaigns Launch and promotions are coordinated with licenses in various countries Advertisements through mass media such as print and electronic transmission bell boards and on the internet are some of LEVI’S way of raising brand awareness among the consumers.25
  26. 26. Mode of sourcingLevis works with direct sourcing in INDIALEVIS signs a contract with all the supply chain suppliers with a major focus on sustainabilityand eco-friendly goods.Cotton, Fabric, Product Suppliers, Distribution, Retail. Supply chainFIBRE-More than 95% of all Levi’s® products are made with cotton grown in the U.S., China,India, Pakistan, Turkey or one of the many other countries where cotton is farmed.FABRIC-Once the cotton leaves the fields, it is spun and made into fabric by mills around theworld.LEVIS generally do not purchase fabric directly from the mills, but takes important steps towardpartnering with them in their drive toward sustainability. . Product suppliersLEVIS is committed to Responsible Global Sourcing.LEVIS contract production from manufacturing suppliers that cut, sew, finish and wash ourproducts.Hence they build sustainability directly into the contracts. DistributionOnce the garments are ready for ship ment , LEVIS distributes them through their own logisticsdepartmentThe INDC is generally the head office at US.26
  27. 27. Suppliers from IndiaAlpine Apparels Pvt Ltd – BangaloreAmbattur Clothing Company - ChennaiAviram Knitters – TirupurGO International – TirupurBEST Garments – TirupurBombay Rayon – BombaCasual garments – TirupurEXIM Clothing –Tirupur27
  28. 28. Trademarks Levis has more than 5,000 trademark registrations and pending applications in approximately 180 countries The Levi’s, Dockers, the Arcuate Stitching Design, the Tab Device, the Two Horse» Design and the Wings and Anchor being the core of all. . Eco-Friendly Levi’s® brand launches 100% organic cotton jeans. Red Tab and, the recently launched, Levis Capital E lines. The jeans will be identified as Levis.28
  29. 29. Problem Statement i) Are Levis jeans users satisfied with what the company is offering? ii) What measures need to be adopted to increase their current level of satisfaction towards Levis jeans?29
  30. 30. Research MethodologyIn this review of available information about a brand, the primary objective is to generate hypothesis concerningthe key ‘assets’ of the brand that are likely to mediate its equity. These hypotheses will help guide and frame themeasures of brand equity that should be used in any research that is conducted. Also, depending upon the brand’smarketing strategy; a researcher may also want to consider the information under review in light of otherpotentially related issues, for example: possible line or brand extension. Up to this point the discussion has canteredon those things it is necessary to understand before actually measuring brand equity. Now it is time to chooseappropriate measures about customer satisfaction and preferences.. First, a number of techniques should be used togain an understanding of its nature.30
  31. 31. Research designResearch Design specifies the methods and procedures for conducting a particular study. AResearch Design is the arrangement of conditions for collection and analysis of the data in amanner that aims to combine relevance to the research purpose with economy in procedure.Research Design is broadly classified into three types as  Exploratory Research Design  Descriptive Research Design  Hypothesis testing Research DesignOn the basis of the objective of study, the studies which are concerned with describing thecharacter tics of a particular individual, or of a group of individual under study comes underDescriptive Research Design.Descriptive Research Design: In this research design the objective of study is clearlydefined and has accurate method of measurement with a clear cut definition of population whichis to be studied.A research design is purely and simply the focus of the study in on studying the banneradvertising is conclusive in nature that guides to the collection and analysis of data. Thedescriptive research design has been used in this project, because consumer’s feedback wasnecessary for obtaining the data.31
  32. 32. Formulating the research problemTwo steps are involved in formulating the research problem:Understanding the problemRephrasing the problem into meaningful terms from an analytical point of view32
  33. 33. Sampling designA Sample Design is a definite plan for obtaining a sample from a given population. It refers t thetechnique r the procedure adopted in selecting items for the sample. The main constitution of thesampling design is as below-  Sampling Unit  Sample Size  Sampling ProcedureSampling unitA sampling framework i.e. developed for the target population that will be sampled i.e. who is tobe surveyedRetailers, Customers, Working people, school students, unemployed and housewives i.e.males and females irrespective of their education level.Sample sizeIt is the substantial portion of the target population that is sampled to achieve reliableresults.200------- respondents.33
  34. 34. Sampling procedureThe procedure to choose the respondents to obtain a representative sample, a non-probabilitysampling technique is applied for the target – market. Non-Probability SamplingIt is a purposive sampling which deliberately chooses the particular units of the universe forconstituting a sample on the basis that the small mass that they so select out of a huge one will betypical or representative of the whole.The sampling used for this study was probability sampling. Since the study is only meant forcertain specific categories within the total population, a stratified random sample was used.Three groups of categories have been taken into account viz. students professionals and generalpublic. Random Sampling (fill up the questionnaire)34
  35. 35. Data collectionPrimary dataThe primary data are those data, which are collected afresh and for the first time. And happen tobe original in character. The primary data to be collected for the study are-Questionnaire –.A set of questionnaire is prepared for the cause of collecting differentinformation related to the pre-determined objectivesSecondary dataSecondary data was obtained from journals, magazines newspapers, books and the internet.35
  36. 36. Research instrumentFor doing the survey research, structured questionnaire with both open ended and close endedquestions were used.Place of studyThe study and survey is done in national capital region only.36
  37. 37. Tools and TechniquesSimple statistical tools and techniques like average, frequency, ratios, tables and graphs, chisquare tests, correlation were used.37
  38. 38. Data analysis Descriptive Data analysisS. No Subject Option Quantity 1 Gender Male 145 Female 55 2 Age group 18-25 64 26-35 87 36-45 40 Above 45 9 3 Occupation Service 42 Business 35 Self-employed 44 Student 57 Homemaker 18 Retired 4 4 Education Up to 10+2 29 Graduate/Diploma 104 post Graduate 67 5 Annual Family Income 200000-400000 43 400001-800000 62 800001-1000000 75 Above 1000000 20 6 Preferable Brand Levis 86 Numero Uno 44 Woodland 43 38
  39. 39. Tommy Hillfigure 27 Others 0The data from our survey has been given above.39
  40. 40. Analysis of customer Gender Fig 1.1 Chart Title Female 28% Male 72%In the above chart we found out of 200 respondent 72% are male and 28% are female who usebranded jeans. We can interpret that males are more brand conscious as compare to females.40
  41. 41. Analysis of customer Age group Fig 1.2 Age Group Above 45 36-45 10% 15% 18-25 39% 26-35 36%In the above chart the customer whose age is between18-25,percentage is 39%.The customerwhose age is between 26-35, percentage is 36%.The customer whose age is between 36-45,percentage is 15%.And the customer whose age is above 45, percentage is 10%.We can saythat youngsters are more brand conscious than other age group people.41
  42. 42. Diagram Analysis of customer Occupation. Fig 1.3 57 60 50 42 44 40 35 30 18 20 10 4 0In the above graph we have found that out of 200 respondent, 42 respondent are serviceperson,35 respondent are Businessman, 44 respondent have a self-employed, 57 respondenthave a student , 18 respondent have a homemaker and 4 respondents have a retired.So, here we can analysis that most of the customers have student.42
  43. 43. Customer Income Group Fig 1.4 80 62 75 60 43 40 20 20 0 200000-400000 400001-800000 800001-1000000 Above 1000000In the above graph we found out of 200 respondent, 43 whose average annual family income is200000-400000, 62 person whose annual family income 400001-800000, and 75 respondentsare in 800001-1000000, 20 person are in above 1000000.43
  44. 44. Diagram of Customer Preference Fig 1.5 Customer Preference Levis Numero Uno Woodland Tommy Hillfigure 14% 43% 21% 22% From your survey we found that out of 200 Respondents 86 Respondents has chosenLevi’s brand, 44 Respondents are goes for Numero Uno brand, 43 Respondents prefer theWoodland brand, only 27 Respondents has chosen the Tommy Hill figure brand. So here we can analysis that most of the customer prefer Levi’s brand for its brand value,Style & price.44
  45. 45. Diagram which analysis customer satisfaction Fig 1.6 100 87 89 90 76 80 69 68 70 62 59 58 57 51 60 50 41 40 30 21 19 21 20 11 10 1 2 2 3 3 0 Highly Satisfied Highly Satisfied Highly Satisfied Highly Satisfied Poor Satisfied Satisfied Poor Satisfied Satisfied Poor Satisfied Satisfied Poor Satisfied Satisfied Not Satisfied Not Satisfied Not Satisfied Not Satisfied Moderate Satisfied Moderate Satisfied Moderate Satisfied Moderate Satisfied Levis Numero Uno Woodland Tommy HillfigureHere in the diagram we try to compare Levi’s brand with Levi’s top three competitors. We try tofind out here the customer satisfaction level of the different brand user. We found that molar lessWoodland and Numero Uno brand use are quite satisfied but above on this the Levi’s brand usermost satisfied.45
  46. 46. Hypotheses TestingList of hypothesesH1: Age has a significant impact on customer choice of brandH2: Occupation of a customer has a significant impact on customer choice of jeans brand.H3: Income of a customer has a significant impact on customer choice of brand of jeans.H4: Price of jeans has a significant impact on customer choice brand of jeans.H5: Price of jeans has a impact on customer perception about the quality of brand of jeans theyare using.46
  47. 47. H1: Age has a significant impact on customer choice of brand Table 1.1 95% Confidence Interval for Mean N Mean Std. Deviation Std. Error Lower Bound Upper Bound 18-25 64 2.78 1.374 .172 2.44 3.12 26-35 87 3.13 1.336 .143 2.84 3.41 36-45 40 2.85 1.210 .191 2.46 3.24 above 45 years 9 2.89 1.453 .484 1.77 4.01 Total 200 2.95 1.329 .094 2.76 3.1447
  48. 48. Table 1.2 Sum of Squares Df Mean Square F Sig. Between Groups 4.964 3 1.655 .936 .424 Within Groups 346.536 196 1.768 Total 351.500 199Result: The alternate hypothesis has been rejected at p<0.05 it means that age has nosignificant impact on choosing brand of jeans by customers.48
  49. 49. H2: Occupation of a customer has a significant impact on customer choice of jeans brand. Table 1.3 N Mean Std. Deviation Std. Error Service 42 3.05 1.343 .207 Business 35 3.03 1.317 .223 self employed professional 44 3.11 1.401 .211 Student 56 2.71 1.371 .183 home maker 19 3.00 .943 .216 Retired 4 2.50 1.732 .866 Total 200 2.95 1.329 .09449
  50. 50. Table 1.4 95% Confidence Interval for Mean Lower Bound Upper Bound Minimum MaximumService 2.63 3.47 1 5Business 2.58 3.48 1 5self employed professional 2.69 3.54 1 5Student 2.35 3.08 1 5home maker 2.55 3.45 1 4Retired -.26 5.26 1 4Total 2.76 3.14 1 550
  51. 51. Table 1.5 Sum of Squares Df Mean Square F Sig.Between Groups 5.763 5 1.153 .647 .664Within Groups 345.737 194 1.782Total 351.500 199Result: The alternate hypothesis has been rejected at p<0.05 it means that occupation of acustomer has no significant impact on choosing brand of jeans by customers.51
  52. 52. H3: Income of a customer has a significant impact on customer choice of brand of jeans . Table 1.6 N Mean Std. Deviation Std. Error 200000-400000 4 5.00 .000 .000 400001-800000 49 4.27 .785 .112 800001-1000000 77 3.42 .496 .057 above 1000000 70 1.40 .493 .059 Total 200 2.95 1.329 .09452
  53. 53. Table 1.7 95% Confidence Interval for Mean Lower Bound Upper Bound Minimum Maximum 200000-400000 5.00 5.00 5 5 400001-800000 4.04 4.49 1 5 800001-1000000 3.30 3.53 3 4 above 1000000 1.28 1.52 1 2 Total 2.76 3.14 1 553
  54. 54. Table 1.8 Sum of Squares Df Mean Square F Sig.Between Groups 286.448 3 95.483 287.685 .000Within Groups 65.052 196 .332Total 351.500 199Result: The alternate hypothesis has been accepted at p<0.01 it means that income of acustomer has significant impact on choosing brand of jeans by customers.54
  55. 55. H4: Price of jeans has a significant impact on customer choice brand of jeans. Table 1.9 N Mean Std. Deviation Std. Error 200000-400000 4 1.00 .000 .000 400001-800000 49 1.49 .649 .093 800001-1000000 77 3.19 .430 .049 above 1000000 70 3.83 .380 .045 Total 200 2.96 1.058 .07555
  56. 56. Table 1.10 95% Confidence Interval for Mean Lower Bound Upper Bound Minimum Maximum 200000-400000 1.00 1.00 1 1 400001-800000 1.30 1.68 1 3 800001-1000000 3.10 3.29 2 4 above 1000000 3.74 3.92 3 4 Total 2.81 3.10 1 456
  57. 57. Table 1.11 Sum of Squares Df Mean Square F Sig. Between Groups 178.329 3 59.443 263.203 .000 Within Groups 44.266 196 .226 Total 222.595 199Result: The alternate hypothesis has been accepted at p<0.01 it means that price of a jeans hassignificant impact on choosing brand of jeans by customers.57
  58. 58. Correlation between annual family income and brand preferences of respondent Table 1.12 annual family brand income of preference of respondent respondent ** annual family income of Pearson Correlation 1 -.872 respondent Sig. (2-tailed) .000 N 200 200 ** brand preference of Pearson Correlation -.872 1 respondent Sig. (2-tailed) .000 N 200 200Result: there is a strong correlation between annual family income and brand preferences ofrespondent. Correlation is significant at the 0.01 level.58
  59. 59. H5: Price of jeans has an impact on customer perception about the quality of brand of jeans they are using. Table 1.13 95% Confidence Interval for Mean N Mean Std. Deviation Std. Error Lower Bound Upper Bound Minimum MaximumRs1500-2500 33 3.03 .883 .154 2.72 3.34 1 4Rs2501-3500 17 3.29 .470 .114 3.05 3.54 3 43501-4500 76 3.95 .225 .026 3.90 4.00 3 4Rs4501-5500 74 4.73 .447 .052 4.63 4.83 4 5Total 200 4.03 .795 .056 3.92 4.14 1 5 59
  60. 60. Table 1.14 Sum of Squares Df Mean Square F Sig. Between Groups 78.937 3 26.312 110.001 .000 Within Groups 46.883 196 .239 Total 125.820 199Result: The alternate hypothesis has been accepted at p<0.01 it means that price of a jeans hassignificant impact on quality perception about brand of jeans by customers60
  61. 61. Findings1. Age has no significant impact on choosing brand of jeans by customers.2. Occupation of a customer has no significant impact on choosing brand of jeans by customers.3. Income of a customer has significant impact on choosing brand of jeans by customers.4. Price of jeans has significant impact on choosing brand of jeans by customers.5. Price of a jeans has significant impact on quality perception about brand of jeans bycustomers.6. There is a strong correlation between annual family income and brand preferences ofrespondent.61
  62. 62. LimitationThe area of research has been limited to Delhi NCR area due to financial and time.The number of respondent has been limited to 200 only due to time foundation.62
  63. 63. ConclusionThrough the research we can say that there is a impact of price income of a jeans brand on thecustomer choice of brand. Also there is a strong correlation between price of the jeans andcustomer satisfaction with the brand of jeans.63
  64. 64. RecommendationsFrom the above findings and analysis, following recommendations could be drawn:Levis should more aggressively tap the youth segment, which lies in the age group between 18-25. Thereason for the same is Levis was ranked first in terms of the overall brand image. Hence, Levis has ascope to reach the top position and encase through increase in sales.Since most of customers buy twice a year (i.e. every 6months) or occasionally, and they are not affected by thepromotions, Levis should aggressively advertise coupled with effective sales promotions for improvingcustomer recall and Brand.It was also found from the survey that colour range is low. This also limits preference towards Levis as a brand. Thisarea should be properly looked after by making available hosts of colours.After sales service which is becoming the most critical success factor seems to be not given due importance. .Properafter sales service can provide a competitive edge through efficient customer relationshipmanagementLevis is perceived as premium brand in India. Hence, an economy product range can also tap theunexplored middleclass range.Since Levis jeans is majorly available in departmental stores and factory outlets, reaching thecustomer and availing him with consumer schemes is difficult. India having a large middle class customergroup still being not exploited can be reached through making Levis jeans available at local retail outlets.64
  65. 65. Annexure A QuestionnairePlease answer all the questions for a fair result and evaluation. All the information providedby you will be used for academic purpose and kept confidential.Please specify your:1) Gender: a) Male b) Female2) Age Group: a) 18-25 years b) 26-35 years c) 36-45 years d) Above 45 years3) Occupation: a) Service b) Business c) Self Employed Professional d) Student e) Home maker f) Retired4) Education: a) Up to 10+2 b) Graduate/Diploma c) Post Graduate5) Annual Family Income: a) Rs. 200000-400000 b) Rs. 400001-800000 c) Rs. 800001-100000065
  66. 66. d) Above Rs. 10000006) Which brand of Jeans do you prefer most? a) Levi’s b) Numero Uno c) Woodland d) Tommy Hilfigure e) Any other, Please Specify __________Please answer rest of the questions in context of your most preferred brand X of jeans only.7) Which one of the following is the most important reason to prefer brand X? a) Fabric b) Style c) Brand Image8) How frequently you normally buy the X brand? a) Monthly b) Within 3months c) Within 6 months d) Annually9) Please evaluate brand X on below mentioned features. (You may assign values from 1 to 5 where 1= lowest performance, 5= highest performance) a) Fabric b) Style c) Brand Image10) How did you come to know about brand X? Through: a) T.V. Advertisement b) Print Advertisement c) Hoarding d) Friends66
  67. 67. e) Any other, please specify __________11) In what price range you prefer to buy to buy? a) Rs 1500-2500 b) Rs 2501-3500 c) Rs 3501-4500 d) Rs 4501-5500 Please put (tick) on a scale of 1-5, (where as 1=Never,2=Seldom, 3=Can’t say,4= Often, 5 = Much)12. Are you satisfied with the quality of products of X Brand? 1 2 3 413. How satisfied are you with the clarity of information which provided? 1 2 3 414. How satisfied are you overall with the service you received? 1 2 3 415. Please, give us your suggestions and recommendations for Levi Strauss and Co. with out anyhesitation.Thank you for your cooperation!67
  68. 68. Bibliography 1. 2. 3. 4. Magazine68