Levi Strauss & Co. is a global jeanswear company founded in 1853 in San Francisco. It owns several brands including Levi's, Dockers, and Denizen. Levi's invented blue jeans in 1873 when Levi Strauss partnered with Jacob Davis to create durable work pants with copper rivets. Today, Levi's generates over $4 billion in annual revenues. It faces competition from brands like Calvin Klein, Gap, and VF Corporation. To drive its comeback, Levi's expanded distribution to new stores, launched trendier product lines, and found new ways to engage younger consumers and maintain brand loyalty.
DIGITAL MARKETING COURSE IN BTM -Influencer Marketing Strategy
Levi's History and Marketing Strategies
1. Levi Strauss & Co: Levis Strauss
By
SHIVANI SINGH
13810072
2. Levi Strauss
• “Objects are what matter. Only they carry the
evidence that throughout the centuries
something really happened among human
beings” - Levi Strauss
3. History
• Levi Strauss (1829-1902), the inventor.
• HEADQUARTERS: San Francisco, Brussels, Singapore
• FOUNDED: In 1853, Levi Strauss opened a wholesale dry goods business
in San Francisco that became known as “Levi Strauss & Co.” Seeing a
need for work pants that could hold up under rough conditions, he and
Jacob Davis, a tailor, created the first jean. In 1873, they received a U.S.
patent for “waist overalls” with metal rivets at points of strain. The first
product line designated by the lot number “501” was created in 1890.
• TODAY : One of the world’s largest brand-name apparel companies and a
global leader in jeans wear. They design and market jeans, casual wear
and related accessories for men, women and children under the Levi’s®,
Dockers®, Signature by Levi Strauss & Co.™ and Denizen™ brands.
FY 2010 NET REVENUES: $4.4 billion
EMPLOYEES: About 16,200 worldwide
4. Location
Levi Strauss & Co. is a worldwide corporation
organized into three geographic divisions:
• Levi Strauss America (LSA), Head quarters –
San Francisco.
• Levi Strauss Europe, Middle East and Africa
(LSEMA) Head quarters - Brussels
• Levi Strauss Asia Pacific Division (APD), Head
quarters – Singapore.
5. Target Market
• LEVI’s specifically targets customers falling under:
Upper Class
Upper Middle Class
It emphasizes more on the age group of 13-24 (youngsters),
although it has its product range for people with above 30 yrs age.
• Its strategy is basically on having long-term relations with their
customers by designing jeans, shape, color, and cloth so that fun
mix and match clothes with accessories in style of fashion
• In 1930’s Jeans were positioned as being worn by “cowboys”.
• Consumer demand shifts from durability of jeans to fashion of
jeans.
• Culturally, jeans became symbol of youth and rebellion
6. Competitors & Segmentation
approach
Threatened by competition, because barriers of entry were relatively
low in the jean market. (excluding the patent).
Some of Levi’s competitors include:––Calvin Klein, Gap Jeans ,VF Corp
(Lee, Wrangler),Tommy Hilfiger.
• The entrance of new competitors had many effects on Levi’s.
• More competitive prices leading to lower profits
• Availability of substitutes firm faces increase in elasticity of demand
• Consumers prefer other brands Levi’s customers buy from
competition lowering Levi’s market share.
• These newer upstarts are able to “chip away” at Levi’s market
dominance because they are able to capture segments.
• VF Corp captures low--end jean consumers.
• Calvin Klein captures high--end consumers
7. Competitors & Segmentation
approach
Levi’s failed to recognize booming premium jeans market,
originating in 2000 and led by brands such as Seven For
All Mankind, True Religion, and Rock & Republic.
• Company was forced into radical cost--cutting, closing
dozens of factories and laying off thousands of workers.
• The premium jeans market has over the last five years
largely sales grew at 40--45% rate for multiple years.
• Posting declining sales in nine out of ten years prior to
2007.
• With the rise of competitors and decrease in brand
image, Levi Strauss & Co. makes use of edgy
advertisements
8. Competitors & Segmentation
approach
Brand Loyalty––The word “original “is used many
times.––Some television ads are set in the late
1800s, stressing the historic value of ads the
company.
• Levi’s, Dockers, Denizen and Signature brands which
are trusted .
• Recognized for their quality, integrity and originality.
• Levi’s and Dockers denim and khakis set a standard
by them.
• The quality craftsmanship and premium fit in family
clothing have made Signature brand a benchmark.
• Denizen brand as jeans for new generation
9. Levis- Customer perception of the
Brand
A tough pair of jeans
Original
Authentic
Youthful & Sexy.
Stylish design
Rugged style.
Affordable price
Highly durable
High quality
Comfort
adventurous streak
10. What makes us different?
• Points of Parity
– Accessibility
– Convenience
– Variety
– Quality
– Fitting jeans
• Points of Difference
– Authentic
– Original
– Innovation
– Premium price
11. Digital Media Strategy Objective
• Choosing media placement based on reach to target audience
• Create forums in which customers can interact with each other
and with Levi’s to build brand image and loyalty.
• Website – Corporate website (levi.com) linked to by over 1,000
sites
• Face book – Largely trafficked, 60% of our target market are users
– Primary face of our digital media campaign
• YouTube – Reach 52% of our potential customer base – Allows for
more “active” extension of “jeans for life” campaign
• Twitter – Linkage to corporate website, Face book, YouTube –
Announce promotions, how-to videos, engage with customers
12. How Did Levi's Manage Its
Comeback?
• More than offering their jeans at discount and specialty stores, Levi’s also tried to
make themselves more attractive to younger consumers by making their jeans
available stores frequented by younger shoppers(Lee).An important, and risky,
move in Levi’s reinvention was to become more obtainable and offer something
to different market segments. Furniture and home accessories such as sheets,
blankets etc. Since Levi’s sponsors music festivals, camping gear could also be
part of their product range.
• Product lines were in vogue and Levi’s enjoyed a triumph with new, trendier
products such as their low-rise jeans. The company became better at responding
to trends and once again gained popularity among younger consumers. Levi’s
also became better at teasing out trends, not just in the apparel industry, but in
society.
• Upholding a relationship with consumers and keeping them loyal to their brand is
a continuous task and Levi’s needs to be innovative and create new ways to
maintain these relationships. Different ways to do so could be: 1. Strategic
alliances and licensing. Levi’s has often teamed up with different organizations to
give back to society.