Levis strauss & co mm project


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Levis strauss & co mm project

  1. 1. 1. INTRODUCTIONLevi Strauss & Co. (LS&CO.) is one of the worlds largest brand-name apparel marketerswith sales in more than 110 countries. There is no other company with a comparable globalpresence in the jeans a n d c a s u a l p a n t s m a r k e t s . T o d a y , t h e L e v i s ®t r a d e m a r k i s o n e o f t h e m o s t r e c o g n i z e d i n t h e w o r l d a n d i s registered inmore than 160 countries. The company is privately held by descendants of the family of LeviStrauss. Shares of company stock are not publicly traded. The company employs a staff ofapproximately 8,850 people worldwide, including approximately 1,000 people at its SanFrancisco, California headquarters. Levi Strauss & Co currently makes jeans inapproximately 108 sizes and 20 finish fabrics. From the early 1960s through the mid1970s, Levi Strauss experienced significant growth in its business as the more casual look ofthe 1960s and 1970s ushered in the "blue jeans craze" and served as a catalyst for the brand.Levis, under the leadership of Walter Haas Jr., Peter Haas, Ed Combs, and Mel Bacharach,expanded the firms clothing line by adding new fashions and models, including stone-washed jeans through the acquisition of Great Western Garment Co. (GWG), a Canadianclothing manufacturer, and introducing Permanent Press trousers under the Sta-prest name.The company experienced rapid expansion of its manufacturing capacity from 16 plants tomore than 63 plants in the United States from 1964 to 1974 and 25 overseas. The use of "payfor performance" manufacturing at the sewing machine operator level up.2004 saw a sharp decline of GWG in the face of global outsourcing, so the company wasclosed and the Edmonton manufacturing plant shut down. The Dockers brand, launched in1986 which is sold largely through department store chains, helped the company growthrough the mid-1990s, as denim sales began to fade. Dockers were introduced into Europe in1993. Levi Strauss attempted to sell the Dockers division in 2004 to relieve part of thecompanys $2 billion outstanding debt.Launched in 2003, Levi Strauss Signature features jeans wear and casual wear. In November2007, Levis released a mobile phone in co-operation with Mode Labs. Many of the phonescosmetic attributes are customisable at the point of purchase.1|Page
  2. 2. 2. BRANDS:The products of Levi Strauss & Co are sold under three brands:Levis®:Since their invention in 1873, Levis® jeans have become one of the most successful andwidely recognized brands in the history of the apparel industry.Dockers®:Dockers® brand, which pioneered the movement toward business casual, has led the U.S.khaki category since the brands 1986 launch, and is now available in numerous countries.Levi Strauss Signature™: In 2003 the launch of the Levi Strauss Signature™ brand, giving value consumers high-quality and fashionable clothing from a company on which the consumers trust.3. MARKETING MIX:2|Page
  3. 3. The marketing mix is the set of marketing tools the firm uses to pursue its marketingobjectives in the target market. Marketing-mix decisions must be made for influencing thetrade channels as well as the final consumers. McCarthy classified these tools into fourbroad groups that he called the four Ps of marketing: product, price, place andpromotion. Note that the four Ps represent the sellers’ view of the marketing tools availablefor influencing buyers MARKETING MIXPRODUCT PRICE PROMOTION PLACEProduct variety List price Sales promotion ChannelsQuality Discounts Advertisements CoverageDesign Allowances Sales Force AssortmentsFeatures Payment period Public relations LocationsBrand name Credit terms Direct marketing InventoriesPackagingSizesServicesWarrantiesReturns3.1 PRODUCT:3|Page
  4. 4. “Product means set of tangible and intangible attributes which may include packaging,colour, price, quality and brand plus the seller’s services and reputation. A product may be aplace, service, good or promotion.”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 areconsidered 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.LEVI’S®Invented in 1873, Levis® jeans are the original, authentic jeans. They are the mostsuccessful, widelyrecognized a n d o f t e n i m i t a t e d c l o t h i n g p r o d u c t s i n t h e h i s t o r y o f a p p a r e lLevis® jeans have captured the attention, imagination and loyalty ofgenerations of diverse individuals. As the inventor of the category, the Levi’s brandcontinues to define jeans wear with widest range of products available from quintessentialclassics, such as the famous Levis®501® Original jean to favourite fits and styles in our RedTab™ and Levis® Premium collections.DOCKERS® Launched in 1986 in the United States, Dockers® brand products and marketingplayed a major role in the creation of a new apparelcategory f o r m e n s p a n t s a n d t h e s h i f t t o c a s u a l c l o t h i n g i n t h e wo r k p l a c e . Dockers® Khakis quickly became the No. 1 khaki pant brand in theUnited States. In 1988, the brand launched Dockers® for Women,a feminine interpretation of Dockers® brand apparel. The lineoffers fashionable tops, dressand casual pants and a full rangeof accessories designed to fit a variety of differentbodyt y p e s a n d s i z e s . T o d a y , t h e D o c k e r s ® b r a n d h a s expanded to more than 50 countries in every region of thew o r l d w i t h a c o m p l e t e a s s o r tm e n t o f s t y l i s h a n d innovative products including full line of tops,foot wears, accessories, for a broad range of consumers.LEVIS STRASS SIGNATURE:4|Page
  5. 5. The Levi Strauss Signature™ brand was launched in 2003 exclusively for consumers whoshop 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. TheLevi 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.PRODUCT ATTRIBUTESProducts are usually considered to be the No.1 factor contributing towards buildinggoodwill of a firm. A product should be unique, durable, reliable, comfortable andeconomical. Following are some of the basic attributes of LS & CO.’S products • Variety • Features • Design • Colour • SizeVARIETY 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 productsincluding:JEANS Levi’s jeans have been present at nearly every pivotal moment in history and culture for thepast 150 years.Shirts5|Page
  6. 6. Cotton PantsAccessories • Belt • Sunglasses6|Page
  7. 7. • Wallets • Lady Bag • Jacket • Shoes7|Page
  8. 8. Features:Features are competitive tools that differentiate the company’s products from itscompetitor’s products. Following are some of the main and distinctive features of Levi’sproducts.ComfortLevi’s jeans and other products are comfortable enough to be worn even at the times ofprotest, war, Cultural Revolution, relative peace and pure fun.DurabilityThe two figures on the patch of Levi’s jeans with whips in hand pulling in oppositedirections, yet the jeans remain intact symbolize the strength and durability of the ‘Patentriveted clothing’.StyleClothing means more than just fabric, thread and rivets. To clothe oneself means to puton something that symbolizes who you are. Levi’s jeans are available in different styles formen and women.3.2 PRICE: It 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 theonly mix, which generates a turnover for the organization. The remaining 3ps are thevariable cost for the organization. It costs to produce and design a product, it costs todistribute a product and costs to promote it.List Price:8|Page
  9. 9. Their products are sold at listed price, which are settled by the Levis Company (Singapore).There is no discount to offer.Credit Sales: They also deal with credit sales, but theydon’t overcharges to the customers, we pay it our self to the bank (3 %). Products are onlysold for cash or on credit cardsDiscount:They don’t give the discount to their customers, even to the employees of the Levis. Theirprices are fixed.Payment period & credit termsPayment Period & Credit Terms are settled by the company.Price Determination:During the determination of the price company not considered the competitors, butthe standard that is used is considered .Our price is influenced by the following factors:- • Cost of the product • Affordable for the target market • Demand of the product Uniqueness and innovative features of the products.Competitors: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 somecompetitors e.g. • Pepe Jeans • Leeds (US Apparels) • GAAP Jeans • CambridgeTheir 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.3.3 PLACE:9|Page
  10. 10. Placement objectives:- • To equalize the demand and supply of products at all places. • To provide desired products at proper place. • To full fill the requirements of every locality according to the taste of the people. • To increase the brand equity by reaching every corner of the world.ChannelsStrategy: Levi’s Strategy for choosing channels is according to Product: Mostly Levis is limited to hiswholesalers , because the unit value is high and cost related issues occur.Location:-They sell our product in 110 countries,55000-plus retail locations and 1500 brand dedicatedstores. Levis® brand of products are sold in 49 countries, Dockers® brand in 31 countriesand our Levi Strauss Signature™ brand in 4 countries:COUNTIRES:These countries are Australia, Bangladesh, Brunei, China, Guam, HongKong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, thePhilippines, Singapore, Sri Lanka, Taiwan ,Thailand. B a h r a i n , I s r a e l , J o r d a n , K u w a i t , O m a n , Q a t a r , S a u d i A r a b i a , U n it e d A r a b E m i r a t e s A n g o l a , B o t s w a n a , Mozambique, Namibia , South Africa.Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador,Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela.STRATEGIES:10 | P a g e
  11. 11. LS & CO. placed its products according to following strategies. Placing according to Classand Attributes:LS & CO. Positioned its products according to different classes and genders.Placing according to Competitors:LS & CO. Keep in mind the price and quality of the products and try to make its productsbetter.Placing according to Price and Quality:LS & CO. introduces best quality at different prices to its clients.Placing according to Technology: LS & CO. has tried to build its image as an innovator by coming in Pakistan withtheir Jeans having new and latest style and look.D) PROMOTION:Promotion 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.Sales PromotionsAdvertising:-The types of advertising used by LEVIS are:Competitive advertisingThe advertisement given by the LEVIS stresses on the demand of the product andenhancement of its features.Institutional advertising Levis uses institutional advertising to promote company’s image by saying Many Copy theRed Tab No One can copy the OriginalAdvertising mediums:-The advertising media used by the company are • Television • Fashion Magazines, Newspapers • Internet. • Bill boards ,banners etc11 | P a g e
  12. 12. Television & Radio: Advertisements of Levi Strauss &Co. are very innovative and eye-catching.Buyers are attracted towards the product. The advertisements are placed at theinternational level .Fashion Magazines & Newspapers:For fashion magazines and newspapers LS&Co. is a target due to itsg r a n d b r a n d e q u i t y , i t h a s b e c o m e a benchmark for all the others to follow. Thenewspaper gives coverage to the social events in which LS &Co takes part with greatinterest. Whereas fashion magazines are always dealing with the gorgeous models workingwith LS& Co and the unique outfits of the models.Internet :- Levis provides up-to-date information to their customers through electronic media i.e. fromtheir websiteBillboards & banners:Billboards and banners are also used for the advertisement purposeSales force:-Levi’s holds a very big sales department as it is working in many countries.Level of Distribution Intensity: Levi’s is using selective but intensive distribution level for the distribution ofits products.Sales Offices and Sales Branches:Sales offices for Levis act as a display center for their Products from where thecustomers can get information about latest designs and up to date fashion introduced.While the actual sale of the products take place at the sales outlet of the company.12 | P a g e
  13. 13. Public relations:-The sales promotion of LEVIS also includes such activities as event sponsorship. Levi Strauss& Co. says ,“Our corporate values enable our vision of the future and reflect the legacy of ourfounder, Levi Strauss, who devoted substantial time and resources to charitableand philanthropic activities.”GUIDING PRINCIPLES:There are three guiding principles present behind the global giving programs:--The first is abelief in empowerment - the right of women and youth to identify their needs and toparticipate in solving problems that affect them. The second is a resolve to address socialbiases and their impact on youth and women whether due to racism, xenophobia, sexism,homophobia or HIV/AIDS status. The third is a commitment to work collaboratively withother funders and to encourage joint efforts by our grantees.ISSUES:These principles are applied to two interrelated issues:Preventing the Spread of HIV/AIDS In 1985 the Levi Strauss Foundation became the first U.S. corporate foundation to addressthis epidemic, and has since contributed more than $26 million to organizationsin more than 40 countries. The Foundation and company-supported programs seekto prevent the spread of HIV/AIDS.Increasing Economic Development and Education OpportunitiesTo alleviate poverty, individuals must have access to resources and possess theskills to acquire and manage financial assets -- yet youth and women continue tostruggle against social norms and financial institutions that limit this type of access anddiscourage education and training. Focusing specifically on indigent womenand youth (age 10 to 25)For Example1. Philanthropy includes a focus on strengthening workers rights and ultimatelyimproving working and living conditions in communities where third-party contractorsmake LS&CO. products. The Levi Strauss Foundation provides innovative "sourcing" grantsto local, regional or global non profit organizations2.LS & Co. ‘s commitment to equal employment opportunity and diversity pre-dates todaysprograms and began in the 1940s when factories were desegregated in California.3. For the past four years, LS &Co has been ranked as one of "Americas 50 Best Companiesfor Minorities".13 | P a g e
  14. 14. 4. In 1991, LS &Co became the first worldwide company to establish acomprehensive ethical code of conduct for manufacturing and finishing contractorsworking with the company.5. In 2003, LS &Co received the Corporate Philanthropy Award for our leadership in givingand volunteering in San Francisco area.6. In 2000, LS &Co inaugurated Volunteer Day at San Francisco headquarters andhas since expanded it beyond the United States and Canada to include sitesthroughout Latin America and Asia. In 2004, employees volunteered more than50,000 hours to charitable organizations around the world and provided $1 millionin philanthropic support to local non profit groups7. In 1998, LS &Co received the U.S. Presidents Ron Brown Award forC o r p o r a t e L e a d e r s h i p f o r outstanding achievements in employee andcommunity relations. LS &Co was recognized for creating Project Change, aninitiative of the Levi Strauss Foundation that combats institutional racism.8. In 1968, LS &Co pioneered an employee volunteer effort called "CommunityInvolvement Teams" or CITs. There are now 78 CITs worldwide.9. LS &Co has played a leadership role in educational programs and policiesregarding AIDS in the workplace10. LS &Co have made more than $27 million in grants for AIDS care andprevention. in the last two decades and have received numerous awards andrecognition for our efforts to combat the HIV epidemicFunding:The philanthropic funding is divided into two categories:The Levi Strauss FoundationThe Foundation is an independent legal entity that provides grants to community-basedorganizations working to create meaningful social change. The Levi Strauss Foundationfunds programs worldwide where LS&CO. has a business presence and gave approximately$10 million in 2004. The Foundation also funds disaster relief efforts, makes charitabledonations to organizations where employees volunteer, matches cash donations byemployees to local charitable organizations, providesgrants to community organizations located in LS&CO.s sourcing communities, andfunds college scholarships for the dependents of LS&CO. employees.Employee Community InvolvementOur employees are a big part of how we give back to our communities we investin what is important tothem.W e e n c o u r a g e e m p l o y e e s g l o b a l l y t o g i v e b a c k t o t h e i r c o m m u n i t i14 | P a g e
  15. 15. e s t h r o u g h e m p l o y e e - l e d C o m m u n i t y Involvement Teams and through thesponsorship of an annual volunteer day.The Levi Strauss Co. & Foundation:The Levi Strauss Co. & Foundation provides grants to local, regional or global non profitorganizations. The grant areas are divided into two:1) Core GrantsThe core grant includes the following: Corporate Social Responsibility Economic &Educational Opportunities HIV / AIDS .2) Non-Core Grants Animals Arts & Culture Civic Disaster Relief Environment Food, Shelter &Emergencies Health & Human Services Holiday Grants Recreation & Athletics YouthEmpowerment.4. REFERENCE: www.levistrauss.com http://levi.in www.wikipedia.org15 | P a g e