This marketing plan proposes a new line of Levi's "Celebrity Fit" jeans that will be modeled after and named after celebrities. There will be men's and women's lines with 3-4 styles each tailored to compliment different body types represented by celebrities like Rihanna and Robert Pattinson. The plan aims to make Levi's seem more trendy and appeal to young adults in the US and Europe through print ads focusing on the personalized fit and relating to celebrities. Objectives include improving sales 15% and enhancing Levi's brand image in today's fashion climate.
The company was founded by Levi Strauss in 1853 primarily
selling wholesale dry goods. The company was founded in San Francisco, California.
The innovation of the rivets in the jeans differentiated
Levi’s jeans from others because of its increased durability.
Over the years, Levi Over Levi’s jeans have become more
popular, initially due to its durability. Jean products expanded,
targeting different consumers.
Levi Strauss & Co. eventually captures most of the denim jean
market, becomes the largest manufacturer of jeans, and profits
reach $1 billion by 1974.
A tailor named Jacob Davis thought of an idea to use copper
rivets to reinforce the points of strain on pants.
Davis and Strauss purchased the patent of the idea of using
copper rivets in clothing on May 20, 1873.
The company was founded by Levi Strauss in 1853 primarily
selling wholesale dry goods. The company was founded in San Francisco, California.
The innovation of the rivets in the jeans differentiated
Levi’s jeans from others because of its increased durability.
Over the years, Levi Over Levi’s jeans have become more
popular, initially due to its durability. Jean products expanded,
targeting different consumers.
Levi Strauss & Co. eventually captures most of the denim jean
market, becomes the largest manufacturer of jeans, and profits
reach $1 billion by 1974.
A tailor named Jacob Davis thought of an idea to use copper
rivets to reinforce the points of strain on pants.
Davis and Strauss purchased the patent of the idea of using
copper rivets in clothing on May 20, 1873.
These topics focus on the relevance and importance of marketing, which you can use to complete your MBA essays. https://www.managementwritingsolutions.com/scholarship-essay.php
This is the Marketing assignment given.. It contais the 4p's of marketing and also the s.w.o.t analysis..
You can use this as a sample for your slide presentation.
MKT 445: Branding & New Product Development
-Surveyed 50 people within the brand's target market to understand the brand from the consumer and brand manager's perspective based on its brand equity.
- Developed 2 new (possible) brand extensions. Identified the opportunity, conducted focus groups to qualitatively measure its favorability, recommended a decisive final outcome with rationale.
Class Concepts: Points of Parity, Points of Differentiation, Positioning, Brand Resonance Pyramid Model, User Profiles, Mental Maps, Sources of Brand Equity
3. 3
GLOBAL MARKETING PLAN
Final Project
1. ExecutiveSummary
As the fashion industry continues to grow and evolve, Levi’s safe and reliable
image threatens to hold them back. In order to keep Levi’s new and desirable,
we have created a global marketing plan for a new line of products that
integrates Levi’s with the fast-paced and high profile world of pop culture. We
will do this by creating two lines of “Celebrity Fit” jeans, one for men and one for
women. Each pair of jeans will be modeled and named after a different celebrity
with a classic body type and personal style. We will have approximately 3-4
different styles in each line, depending on the availability of celebrities to endorse
each one. The design of each fit will be focused on how to compliment each
body type and evoke personal style.
We will market the new line to young adults in the United States and European
regions through various media outlets focusing on print advertisements. Our
campaign message will focus on the personalized fit of the jeans and the appeal
of relating to a global celebrity, while celebrating diversity and individuality. This
campaign will enhance the Levi’s image and move them towards a more trendy
and edgy profile.
2. Overview
We will be creating a celebrity fit jeans line for Levi’s with the following features:
Different fits for different body types
Association between your body type and individual style with
fashionable celebrities
Simplify the jeans shopping experience—easier, faster, and less
stressful
4. 4
3. Situation Analysis
The Levi’s brand epitomizes American classic jeans. Levi Strauss invented his
signature jeans in 1873 and they have become the most recognized jeans in the
world. The Levi’s brand continues to innovate and expand its portfolio with its
everlasting pioneering spirit. They sell their apparel globally under the labels
Levi’s, Dockers, and Levi’s Signature in more than 110 countries. There is no
other company with a comparable global presence in the jeans market. “The
Levi’s brand is iconic—a true representation of jeans and of the diversity of
aspirations of people around the world.” Levi’s current lines include men’s and
women’s dark denim line, jeans under $40 line, Capital E jeans line, and the
Black and Grey collection. The jeans are priced between, $40 - $250.
Levi’s were once the staple of American youth, but now Levi’s is trying to expand
globally and to broaden its product portfolio. Although Levi’s is a well-known
brand, it is facing fierce competition as many retailers are entering the denim
market. Levi’s was once a market leader in the jeans industry synonymous with
high quality denim. Now Levi’s brand image is changing. Some brand tags
associated with Levi’s are ‘durable’, ‘American’, ‘classic’, ‘cool’, ‘cowboy’,
‘rugged’, ‘old’ and ‘expensive.’1 There has been an explosion of hip denim
brands over the past decade from high-end retailers such as Diesel to low-end
retailers like H&M that have all pushed Levi’s from the top. “Incremental sales
growth in Asia has not offset the fall in the US and Europe.”2 Their most recently
posted third quarter income was down $41 million. In attempts to take back
market share, Levi’s made a decision to sell its Levi’s Signature brand jeans in
low-end retailers such as Wal-Mart. This only damaged Levi’s brand image. The
Signature jeans were priced at $18 - $24, which is 35% less than Levi’s Red Tab
jeans. The decision to sell Levi’s Signature label at low-end retailers hurt Levi’s
brand equity. Levi’s priced around $20 at Wal-Mart reduced the brand to a
1 www.brandtags.net
2 www.brandchannel.com/home/post/2009/10/12/Striking-New-Levis-Ads-
Attempt-To-Revive-Flagging-Brand.aspx
5. 5
commodity and once consumers saw the brand as a commodity they based their
decision on price alone.
Markettrends
Jeans buyers care most about fit. Even though we are in an economic
recession, people are still buying jeans—jeans are recession proof. The only
change in consumer behavior is that they are more price conscious. Sales of
premium denim have grown and are expected to stay strong. According to a
survey by Cotton’s Incorporated’s Lifestyle Monitor, 50% of consumers care most
about fit, 19% care most about style, and 16% care most about price.
Jeans are a wardrobe staple with 96% of consumers owning denim jeans and
seven pairs on average. The average consumer wears jeans four times a week
and 78% of consumers love or enjoy wearing jeans. Buyers of premium denim
tend to be young and affluent and 64% are aged between 13 – 34. Sales of
denim jeans have significantly increased in the age groups 13-17 and 25-34.
Consumers of premium denim are willing to pay full price rather than wait for
sales and they tend to pay on average $69, but would be willing to pay between
$84 - $100 on their next purchase of premium denim. The quality of denim is
important and consumers are willing to pay a premium for natural fibers—like
100% cotton jeans. Within the premium denim market there is less brand
loyalty—consumers are more likely to be influenced by TV shows, fashion
magazines, and celebrities. Key factors that affect consumers buying behavior
are fit, fabric, finishing, and fashion fowardness. Denim companies are looking
towards new technologies to improve production and lower environmental impact
as well as other ways to grow their businesses and to enhance customer loyalty.
The most popular current styles are the skinny jean and the boyfriend-fit jean.
Other styles include straight leg, boot cut, wide leg, high waisted, and low rise.
6. 6
The skinny styles have remained hot and on trend regardless of the fact that they
only look flattering on a small segment of the population.
Levis’ competitors are Gap, Diesel, J Brand, and Seven for All Mankind. Gap is
Levi’s main competitor is Gap whose new 1969 collection consists of a range of
styles that focus on great fits for different body types. Gap’s new line offers
premium denim for affordable prices. Gap’s aim is to offer customers a new level
of fit and styling.
SWOT Analysis
Strengths Weaknesses Opportunities Threats
Levi’s has
international brand
recognition in the
jean market
Not enough
innovation or
change in design
Reliable and
consistent brand
Many competitors
Different signature
names (Levi’s,
Dockers & Levi
Straus)
Consistent but can
be repetitive for
the market
Different signature
names (Levi’s,
Dockers & Levi
Straus)
Large growing
market
Well established
brand with a loyal
customer base
Not a lot of
variation between
the different
signature brands
Changing the
image of one of
the signature
brands
The vast market
has a lot of sub
segments, which
brands specialize
in; Levi’s has to be
aware of this.
Outsourcing in 50
countries
worldwide
Not enough
market link/
research
The brand has
potential to branch
out because of it’s
history
Too much
association with
the American
market and not
enough attention
on the potential
international
markets.
Use of number
codes associated
with cut and style
facilitate buying
process for
customers
therefore Levi’s
Outsourcing may
not be ethical
More website
traffic in North
America than
other competitors
therefore Levi’s
doesn’t rely solely
on retail stores.
Sustainability of
celebrities i.e. how
long will they be
famous for?
7. 7
customers can
visit the website
and easily get
their desired jeans
without having to
try them on.
Celebrities are a
trend, therefore,
Levi’s has to be
careful with
picking the right
celebrities are
always in the
limelight
Changing the
celebrities for the
Indian market
according to
Bollywood
celebrities. The
Indian market is
very focused on
these celebrities.
New market
competitors for the
secondary market
(India, UAE,
Japan).
4. MarketPotentialAssessment:
Levi’s has a high market potential due to the history, reliability and quality of the
company and products. They however have to make sure that they do enough
market research to see where they can place themselves due to the large
competition in the jeans market today. This is not a big problem as the company
is well known and well established and now that they outsource in more than fifty
countries worldwide they need to use their brand reliability in a different light.
Levi’s needs to get in touch with the styles and trends of their competitors and
take into account how these brands manage to be popular by looking at their
marketing strategies and see how this can apply to the Levi’s brand. The brand
needs to be rejuvenated and this can be done by being more up to date with the
latest trends, therefore branching out into a younger market than it currently is in.
5. Solution:
Levi’s should focus on fit and the emotional appeal attached with finding the
perfect pair of jeans. “Jeans make you feel great. It’s one of the most fit-sensitive
items in a woman’s closet.”3 Fit sensitive jeans make you look good and in turn
3 http://www.businessoffashion.com/2009/11/j-brand-jeans-in-search-of-the-
perfect-fit.html#more-7787
8. 8
make you feel good. Jeans are versatile—they can be dressed up or down and
they have an emotional appeal. Finding that pair of perfect fit jeans “strike(s) an
emotional chord with shoppers”4 The perfect pair of jeans makes you feel
comfortable, confident, and sexy and once you have found that great pair of
jeans you will go back and buy multiple pairs in different washes. Silhouette
enhancing features can attract and retain customers—“fit is tantamount in
customer loyalty.”5 Levi’s should welcome competition—as long as denim is still
at the forefront of the retail industry then the boom in premium denim will keep
growing the market. Levi’s needs to stand out from the competition by offering
different fits for every body shape and individual styles which will enhance the
customer experience and relationship with the brand. The celebrity fit jeans line
will allow consumers to find that perfect pair of jeans. The line will consist of high
quality denim jeans at affordable prices for the Y generation.
6. Objectives
Quantitative—to improve sales by 15%
Qualitative— to make Levi’s more relevant in today’s fashion forward
climate. To enhance the brand image and to increase brand awareness in
Europe, transforming Levi’s into a trendy brand with global appeal to
young students and professionals
Strategy
7. TargetMarketSelection
Primary Customer Profile: 18-25
Secondary Customer Profile: 13-17
4 ibid
5 ibid
9. 9
Demographic Profile:
Age: 18-25 and 13-17
Gender: male and female
Family Life Cycle: Bachelor or Married Couple- Stage where they have no
or few responsibilities. They think of themselves, they want to have fun,
shop, look good, fashionable, and trendy. They are still young and want to
enjoy and explore life.
Income: upper-middle class financially dependent or independent. Their
income is around US - $100,000
Occupation: Students and young professionals.
Education: They have a degree or college students
Religion: Any religion
Race: Any race
Generation: Generation Y – range in age from teens to mid-twenties
Nationality: International
Mobility: Very mobile. Might travel for work and go on vacations with their
friends.
Housing/ location: Big metropolitan cities. They rent or own a house, still
live with their parents or live in college dorms. They might live in the
suburbs, private houses, but still work or study in the city, so they spend
the major of their time there.
Social Profile
Social Class: Upper to middle Class. They have a good job position;
therefore they have a stable future outlook. Or they are still financially
dependent, middle/high school and college students living with or without
their parents.
Lifestyle: Very active, flexible and modern life style. They are young,
affluent and free. They are affluent materialists, status-conscious ”up- and
–comers” and use conspicuous consumption to communicate their
success.
Reference groups: Friends, older sister/brother
10. 10
Opinion Leaders: Celebrities, Fashionistas, fashion magazines, TV shows,
and movies
Psychographic Profile:
Personality: They are unique and different (all kinds of personalities—the
formal, the sophisticated, the tomboy, the stylish, the bohemian, the funky,
the classic, the cute, the effortless, the cool)
Perceived Risk: They are savvy consumers and are very willing to try new
products and take risks. They have access to information very easily, they
are fast and take decisions very quickly and they are not very loyal to
brands since they are very flexible
Importance of purchase: They care about innovativeness, the quality, the
name, the image, the brand and the price. They are prepared to pay for
high quality and they expect the best.
Geographic Markets:
Primary Market
Our primary markets are North America and Europe. Despite the global
economic downturn, the denim jeans industry is still flourishing. The denim
industry has a competitive advantage over other apparel categories as jeans
have a longer life cycle and jeans have become a wardrobe staple. Shoppers
are foregoing other clothing choices in order to buy jeans, and manufacturers are
adopting pricing strategies, as consumers are now more price conscious. In
North America, customers are looking for high quality denim at affordable prices,
so they are turning to the likes of Levi’s. The price points need to be in tune with
the economic downturn. In Europe, denim market leaders have to compete with
high street labels, especially in the UK. “The UK is possibly the toughest market
outside the US to crack. Retailers are reluctant to test brands at the moment and
high street denim is getting better all the time.”6 The middle market provides
6 http://www.businessoffashion.com/2009/08/the-verdict-gaps-1969-premium-jeans.html
11. 11
significant opportunity for growth with premium denim lines. There is a great
opportunity to gain market share by offering the fit and style of premium denim at
middle market price points between $50 and $150.
Secondary Markets
India
Japan
UAE
8. Messaging
Unique Selling Proposition:
Specificity of cut to fit individual body types
Tailored to personal style
New trendy cuts and a wider variety of styles
Tagline: Be famous. Be free
9. MarketingMix
Product
Different fits of the well-known Levi’s brand jeans associated to well known
fashionable celebrities changing according to the geographic market. The cuts of
the jeans will be based on the celebrity’s body type and style, by letting the
celebrity have a say in the design process. This will help the customers in
identifying the style jeans they want and make it easier by having the visual
examples.
This will not only boost the brand’s popularity but also bring attention to the
celebrities. Since Levi’s is an established brand name that is known for good
12. 12
quality and reliability, this will definitely help with selling the product and
rejuvenate the brand.
The brand is American and therefore goes by “the customer’s always right”
strategy, thus have a very good customer service sector. This helps in knowing
that hopefully the new clients will be staying with the brand in the long-term.
The celebrities we are going to use are Lucy Liu, Penelope Cruz, Rihanna, Kate
Moss, Pharrel, Adrien Grenier, and Robert Pattison. Each of these celebrities is
well known in North America, as well as in Europe. They all have a good image
and act as role models for young teens. They all dress for their body types and
exude personal style.
The celebrities will represent the following styles:
Women’s Styles —
Lucy Liu – Wide leg jeans (for a petite figure)
Penelope Cruz – Boyfriend jeans (for an average figure)
Rihanna – Black high waisted straight leg jeans (for a curvy figure)
Kate Moss – Skinny fit jeans (for a thin figure)
Men’s Styles —
Pharrel – Loose darker denim jeans
Adrien Grenier – Straight leg jeans
Robert Pattinson – Skinny washed jeans
Price
In the past five years there has been a boom in the jean market, with plenty of
new up market brands, selling at ridiculously high prices. However, the pricing is
based on Levi’s current pricing in the different countries mentioned below. Since
there are different sales tax regulations and rent can vary a lot between
countries, the prices are as follow:
North America – ranging from $80 - $150 depending on wash and style
Europe – ranging from $150 - $200 depending on wash and style
13. 13
Promotion
Money off for first week of new collection
Buy something during first week get coupon – to get customer to come back to
the store
Advertisements on Billboards and in magazines, online banners
The main theme of having the celebrity fit jeans is the key promotion element
however there will be additional promotions, mainly when purchasing the
product.
These are different examples of what promotions will be offered and where,
mentioned below, according to the popular consumer reaction to these
promotions in the different countries:
10% off new collection during the first week of sales (all primary market)
Buy something during first week get coupon in order to get the customers
to come back to the store (UK & France, Italy)
Advertisements on Billboards and in magazines (US)
Online advertising banners on blogs etc. (worldwide)
Place
Levi’s stores, as well as high end retail stores – Trendy department stores and
concept stores
The products will be sold in Levi’s stores, as well as high-end retail stores, such
as trendy department stores and concept stores listed below:
France: Colette, Printemps (Paris)
Italy: 10 Corso Como (Milan), TAD (Rome)
UK: Selfridges, Urban Outfitters
US: Saks 5th Avenue
10. Promotion Mix
14. 14
Primary Communication Vehicles:
Public Relations
Deliverables:
Upon the release of the line in each given region, Levi’s “Celebrity Fit” (“Fit
into Fame”) will have an exclusive launch party. We will invite major people in
the fashion world, as well as our celebrity representatives. Gifts will be given to
all attendees. We will be sure to invite the press for public coverage of the party.
Levi’s spokespeople or an employed celebrity will be also generating buzz
through press releases. We will be sure to inform all of the traditional forms of
press, as well as the very relevant fashion bloggers. This means we will be
inviting fashion magazines (from both target markets) including Vogue, Elle,
Glamour, Nylon, Cosmopolitan, Cosmo Girl, Teen Vogue, GQ, Vogue
International, etc. We will also invite celebrity gossip magazines to spark their
interest in our work with top celebrities, and make them knowledgeable of the
jeans so they can properly identify them when they are photographed on
celebrities.
To adequately inform our sales staff of the importance of this new line and
aid in sales, we will be providing all stores with a sales kit that informs them
about the new line, it’s selling points, the celebrities themselves, and other
helpful selling hints.
Advertising
Deliverables:
The “Celebrity Fit” campaign will utilize several media outlets. Our main
focus will be on print ads in fashion magazines (Vogue, Elle, Teen Vogue, etc.)
and web ads on appropriate pop culture/ fashion sites (such as perezhilton.com,
gofugyourself.com, and TMZ.com.)
The message of these ads will be like a fashionable twist of the successful
Dove “embrace the skin you’re in” campaign. We will praise potential customers
15. 15
for being unique both physically and fashionably while implying that these
qualities undoubtedly deserve fame… a fame that can be achieved through
buying our product. We are giving them the option to be famous while still being
themselves, hence one of our sub-taglines, “Be Famous. Be Free.”
A supplementary tool we will exploit in this campaign will be the viral video
revolution. We will release a series of comical/inspiring videos starring each
celebrity in their environment (wearing their jeans.) This could be Robert
Pattinson in a mini-drama or at a movie premier, or Rihanna doing a related
music video. If the celebrities are unavailable or there are concerns with budget,
we could easily use look-alike imposters for an even more comedic affect.
Sales Promotion
Deliverables:
The Celebrity Fit campaign will stimulate sales through various
promotions. We would send out e-mails to members of our current customer
database inviting them to an invite-only sneak preview of the line and discount.
The exclusive feel this has would appeal to the desire of fame. We could also do
types of contests where the winner would win a free fan club membership of
signed CD of their celebrity choice.
Personal Selling
Deliverables:
As each sales associate would have reviewed the sales kit provided, they
would all be knowledgeable regarding the fit of the jeans, selling
recommendations, and the celebrities themselves. This would include selling
points such as why the cut will flatter that specific body type. To make them
excited about the line, they would each get a free pair (or large discount) of the
celebrity fit of their choice. They would be expected to wear this to work.
Levi’s would also provide online sales associates available to advise customers
16. 16
on the best fit for them, and have an online survey to find your own best fit.
Translation/Languages Required: French, Italian, Spanish, German,
Swedish, Dutch, Flemish, and English
Public Relations
Content: Languages:
Advertising
Content:
19. 19
Sales Promotion
Content: All staff in stores will be trained to help customers choose the
perfect according to their body type. This will help the customer find the
perfect fit quickly and effectively. Once the customer knows what fit they
are they can later purchase jeans online and purchase other washes in
the same style.
20. 20
11. Implementation,Controls,and Evaluation
Implementation
Merchandising director
Marketing and Communications director
Advertising director
Logistics director
Sales staff in all stores in North America and Europe with training on the specific
fits of the line
Store managers
Photographers
Celebrities – Lucy Liu, Rihanna, Penelope Cruz, Kate Moss, Pharrel, Adrien
Grenier and Robert Pattinson
Stylist
Web designer
Web manager
Measures of performance
Sales are expected to increase by 15%, so the total sales at the end of the
quarter in North America will be $708 million, and in Europe will be $306 million.
(This includes sales for the Dockers, Levi Strauss, and Levi’s.)
22. 22
12. Appendix
WOMEN’S
Skinny Fit
-Low rise
-Slim in the hip and tight
-Slim leg opening
Black High Waisted Straight Leg
-At the waist
-Slim in the hip and tight
-Slim leg opening
Wide Leg
-Mid rise
-Loose, fitted hip
-Flared leg opening
Boyfriend
-Low rise
-Curvy hip
-Boot cut
23. 23
MEN’S
Skinny Washed
-On waist
-Slim in the hip and tight
-Slim leg opening
Straight Leg
-Below waist
-Fitted hip
-Straight leg
Loose Darker Denim
-On waist
-Loose from hip
-Straight, relaxed leg
24. 24
Survey Analysis
Listed below are the results from the survey we took according to the questions
asked. The questions asked are below along with the answers from the 24
people who answered the questions.
1. Age: 18-23
2. Gender: 3 males 21 females
3. City of residence: Washington, Paris, Cairo, Boston, London, Berlin
4. What is most important to you when buying jeans?
Fit was the most important factor for the 23 people we asked. Then
quality, price, and brand were the least important.
A) Quality
B) Fit
C) Price
D) Brand
25. 25
5. How long does it take you to buy jeans?
According to the results it shows that people want to be able to find the right pair
of jeans in the right fit in the shortest amount of time possible.
a) 1 hour or less = 11 people
b) 1 day = 8
c) 1 week = 1
d) More than 1 week = 4
6. How much are you willing to pay for jeans? (Prices in USD)
The majority of people would spend between $50- $150.
a)
Less than 50 = 0 people
b) 50-100 = 10 people
c) 100 – 150 = 9 people
d) 200+ = 5 people
7. Do you buy jeans online?
Yes =3 people
No = 21 people
8. If no, would you buy jeans online if you had cuts associated with your body
type?
Fifty percent said yes, therefore, there is potential for web marketing.
Yes = 11
No = 11
9. Which brand(s) do you prefer?
Levi’s was the most popular of choices however Seven which is a niche market
high end denim brand.
26. 26
a) Levi’s = 10 people
b) Diesel = 7 people
c) Gap = 5 people
d) J Brand = 5 people
e) Seven = 9 people