Advertising and Promotions Management Project

Aqil Karim 2009-01-01462009-01-00812009-01-01382009-01-0119

2009-01-0148

Submitted To:

Dr. Ehsan ul Haque

Advertising and Promotions Management Project

APM Project Levi’s Shoes2009-01-(0081,0119,0138,0146,0148)

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Introduction1

Levi’s is a well known brand for clothing internationally. But when it comes to the shoes its

brand awareness in shoe category is very low in Pakistan i.e. 59% as compared to the major

competitor’s brands awareness of 100% for Nike and Adidas. The low brand awareness is

verified from very low usage rate for Levi’s shoes that comes out 5% in our survey as compared

to 95% and 68% for Nike and Adidas (Refer to Exhibit I). Levi’s shoes are used primarily for

outdoor (52%) compatible with its brand image in clothing. The Adidas and Nike are used

mostly for sports 61% and 44% respectively (Refer to Exhibit I). This depicts opportunity to

differentiate Levis brand in its target market segment of sports and outdoor against big players.

Whereas Nike carries a brand image of sports wear, Adidas of being expensive, sporty, Power

meant for youth and Puma is of being comfortable, Levis enjoys a brand personality which is

trendy, fashionable and expensive.. The Levi’s advertisement awareness is very low just 5%.

50% of respondent consider that Levi’s brand is different from other brands. Their differentiation

is due to style and outdoor usage. 77% of respondents believe that other brands are also different

from each other. They differentiate themselves on factors like trendy, price, comfort, variety and

quality. 82% of the respondents believe that the shoe brand, they are using, depict their

personality in the society. The consumer consider following factors while purchasing any pair of

shoes: self satisfaction, trendy, price and brand itself. But the most important of all are self-

satisfaction and trendy in purchase behavior of respondents. This shows that it is a

transformational and high involvement purchase decision for customers (Refer to Exhibit III).

The general profile of our survey respondents is: young, 60 % female and 73% comes under the

income level of 40-50K.

Competitive Analysis

The competitors and their positioning strategies are discussed below:

Nike:

Nike is primarily positioned as sports shoes and outdoor usage. Its brand awareness is very high

in young, outgoing individuals. Nike ads are upbeat, involving, emotional and targeted towards a

younger audience endorsed by sports celebrities while also focus on product features.

1 This information is based on the survey conducted about Levis and the competitive brands. Sample size: 30.

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As per X-Y-Z model, Nike has differentiated location within the casual shoe category i.e. sports

shoes and outdoors (Refer to Exhibit III) with positioning based on product as a hero as well as

user as a hero (Refer to Exhibit II).

As per I-D-U model, Nike’s distinguished product features and brand equity are instrumental in

prompting target audience’s purchase decision. Nike’s product is perceived to have different

brand image, quality and product features. The product is unique because its features are

perceived as superior to competitors. Its uniqueness in delivery also comes because of the high

profile sports celebrities being used in its ads.

As per A-B-E model of benefit focus, Nike emphasizes product benefits endorsed by sports

celebrities and thus leading to positive emotions (b e+).

Adidas:

Adidas is positioned as sports shoes. Its brand awareness is also very high like that of Nike. Its

ads are similar to Nike but are more passionate, energetic and upbeat. The ads are also targeted

towards younger audience with endorsement from sports celebrities.

As per X-Y-Z model, Adidas has a differentiated and focused location within the casual shoe

category i.e. sports shoes (Refer to Exhibit III) with positioning based on product as a hero as

well as user as a hero. While emphasizing product as a hero, Adidas reminds the target audience

of comfort, balance, support, and style.

As per I-D-U model, Adidas commands strong brand equity along with satisfied customers. This

along with product features prompts target audience’s purchase decision. The product enjoys a

different image of quality and features. Through sports celebrity endorsement and event

sponsoring, the uniqueness in delivery is ensured.

As per A-B-E model of benefit focus, Adidas emphasizes product benefits endorsed by sports

celebrities and thus leading to positive emotions (b e+).

Puma:

Puma is positioned as sports shoes with average brand awareness. Its ads are passionate,

challenging and full of energy. Importantly, ads are targeted towards young professionals and

depict women as well. However, Puma does not use sports celebrities in all of the ads.

As per X-Y-Z model, Puma differentiates itself with a touch of professionalism in the sports shoe

category and positioning is based on product as a hero.

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As per I-D-U model, Puma enjoys strong brand equity. This along with product features guides

the target audience’s purchase decision. Through emphasis on professionalism and product

features, uniqueness in delivery is ensured.

As per A-B-E model, Puma emphasizes product benefits endorsed by sports celebrities and thus

leading to positive emotions (b e+).

Cheetah

Cheetah by Servis is a local leading sports footwear brand in the country. It symbolizes the

ultimate sportsman: full of passion, confidence and determination. Its ads are targeted towards

professional athletes and features different sports. Cheetah also uses sports celebrity endorsement

in the ads.

As per X-Y-Z model, Cheetah differentiates itself in the sports shoe category through a touch of

professionalism and positioning based on product as a hero.

As per I-D-U model, Cheetah enjoys average brand equity. However, focused approach towards

certain sports categories and product features guide the target audience’s purchase decision.

Through emphasis on professionalism and product features, uniqueness in delivery is ensured.

As per A-B-E model, Cheetah emphasizes product benefits endorsed by sports celebrities and

thus leading to positive emotions (b e+).

The competitive positioning is summarized in Exhibit II.

Target Market and Positioning:

According to Awareness-Attitude-Behavior Approach, our target audience of the ad is Brand

loyals (BLs) and Favorable brand switchers (FBSs). Levi’s brand has been present in Pakistani

Market for long time in different product categories. Levi’s has high brand equity in Market and

we want to leverage that in the footwear category also. Another target audience is favorable

brand switchers who have positive brand attitude but are using other brands due to different

reasons. The consumer survey has shown that Levi’s footwear awareness is low. So by

introducing the product with heavy advertisements we wish to increase Levi’s brand awareness

in the footwear category.

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Furthermore, we have delineated our target audience on the basis of demographics and

psychographics. We will be targeting the young males with in the age bracket of 20-35. The

target audience belongs to family of Sec A.

Behavior sequence model (BSM) helps us deeply understand about the specific target audience

and their purchase criteria. The BSM has been presented in Exhibit V.

Different stages from category need to the usage are shown below.

Need arousal Information search and evaluation Purchase Usage

The category need arises when either the old shoes wear out, going outdoor or attending the

social gatherings and parties. The need arises when some new events are expected to take place

or a new season arrives as it pushes the individuals to change their wardrobe. Whenever there is

need for the shoes, the person will search for the information. He gets information through

advertisements or through friends. This information gathering takes place about a week before

the purchase. This demonstrates the fact that shoes and the brand that one wears depict his/her

personality and that the purchase is a high involvement decision. The individual will choose the

particular brand and the store. In the store the purchase decision is affected by not only self

interest but friends, prices, trend and store staff.

Levi’s shoes Brand Positioning:

X-Y-Z Model:

Our advertisement of the Levi’s shoes brand will depict differentiated location within the

casual shoes category as shown in the (Exhibit II). There is an overlap of usage occasions in the

target market as the sports shoes are also occasionally used for the outdoor fun events and social

gatherings (musical concerts etc). Our advertisement will bank on this opportunity and will place

the product in outdoor/trendy/fashionable shoes. The advertisement will show the user as a

hero.

I-D-U Model:

Since the Levis brand enjoys strong brand equity and targets younger audience, the

advertisement would emphasize the brand along with personality of the target audience. In its

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ads, Levis would target positively originated (transformational) motivations i.e. sensory

gratification and social approval which are found to be the primary motives for purchasing the

brand.

The emphasis would thus be on brand and user personality depicting user as a hero. Also, the

delivery would be different since the ad would show social gatherings and events unlike major

competitors’ ads revolving around sports. This would involve the target audience and make the

brand relevant to them while differentiating Levis against competitors. No sports or other

celebrity would be used in the ads so that only user as a hero image stands out. On delivery

aspect, Levis ad would stand out in depicting the upbeat, trendy and fashionable lifestyle while

uniqueness would be ensured through emphasizing self-assurance, confidence and social

approval.

A-B-E Model:

Our ad will primarily emphasize emotions. The ad will not be highlighting much in the attributes

and the benefits of the product rather it will be pure emotion focus. The emotions of the

individual feeling cool in the current fashionable trend are given more priority in the ad. The ad

will be providing the feeling of joy after using the product. This will ensure the differentiation

from the competing brands which also have similar attributes and benefits as that of our product.

For guidance of the agency regarding advertisements on the basis of these models an agency

brief is given in Exhibit VI.

Positioning Statement:

“For young individuals who want to look cool and fashionable the Levi’s

shoes is a casual footwear that makes them feel distinguished, trendy and

confident. Unlike Nike and Adidas footwear, Levi’s is more trendy and

upbeat”.

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Exhibit I: Brand Knowledge

Brands

Brand Awareness

Usage

Levi's 59% 5%Nike 100% 95%Adidas 100% 68%

Usage Occasion Office Home Fun eventsLevi's 0% 4%Nike 0% 3%Adidas 3% 3%

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Informational Transformational

Low - involvement

High - involvement

Problem removalProblem avoidanceIncomplete satisfactionMixed approach- avoidanceNormal depletion

Sensory gratificationIntellectual stimulation or masterySocial approval


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Purchase Considerations

Self satisfaction Trendy

Price Store Brand

Social approval

Percentage 25% 23% 22% 4% 20% 6%

Exhibit II: Competitive Brands Positioning

Nike Adidas Puma Cheetah

Positioning Sports, outdoor Sports Sports Sports

Target

Audience

BL, OBS,FBS BL, OBS, FBS BL,OBL,OBS BL, OBS, OBL

Demographics Young individuals young Young, professional Young,

professional

X Differentiated Differentiated, Differentiated Differentiated

Y-Z Both Y and Z Both Y and Z Y Y

I-D-U Product features,

Brand equity,

celebrity

Product features,

Brand equity,

celebrity

Product features,

professionals

Product features,

professionals

A-B-E b e+ b e+ b e+ b e+

Exhibit III: The Rossiter – Percy grid

Low-risk,

“relief” purchase

Low-risk,

“reward” purchases

High- risk,

“relief” purchases

High- risk,

“reward” purchase

Exhibit IV: Product Category Structure

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Exhibit V: Behavior Sequence Model (BSM)

Data inputs WHAT (decision stages)

Need arousal Information search

and evaluation

Purchase Usage

WHO

(roles)

- Self - store

- ads

- friends

- self

- friends

- store staffs

- self

WHERE

( location)

- outdoor

- sports

- social events

- ads

- social gatherings

- Levi’s store - self

WHEN

( time and timing)

- Star of new season

- New events

- week before - at spot - outdoor

- sports

-social events

HOW

(description)

- old shoes worn out

- watching others

- choose store/brand

first and then go to

particular store

-lookout brand in

given price range

-design/ style

- individual usages

Exhibit VI: Agency Brief

1. Key Marketing Facts

It used to be the case that sports shoes were worn solely for athletic activities. How times have

changed? Sports shoes are iconic style purchases, which have now ceased to be purely about

performance or comfort. These days, you'll see sports shoes worn for shopping, dining out, or

making a fashion statement. The shoes which were designed to be purely functional have now

become fashionable. Back in the days when sports shoes were worn only for exercise, they all

tended to look pretty much the same: white, bland, and uninspiring. Now, of course, running

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Shoes

Casual

Sports

Nike

Adidas

Social Events

Levi’s

Office Outdoors

Nike

Levi’s

Formal


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shoes come in every color imaginable. You'll also find added features such as pump-up soles and

flashing lights. Levis has recently introduced its footwear range in the Indian market and is

available in over 300 multi brand outlets and licensed stores. By looking at the expanding market

of sports shoes, the company has decided to launch footwear in all the Levis shops and in some

multi brand stores in Pakistan.

2. Message by Advertising

The brand image of Levis is strongly associated with its Levi's brand of denim jeans. Levi’s

Footwear truly complements your jeans especially if they’re Levi’s jeans. The blue jeans icon’s

footwear collection is a walking essence of the brand. Bearing the brand print of innovation and

youthfulness, the Levi’s Footwear Collection will appeal to modern youth who want to keep in

step with the latest fashion apparel and footwear.

3. Advertising Objective

The advertising objectives include: 1) Making target audience feel the emotions of a trendy life

style associated with Levi’s brand image. This is differentiated from competitors’ image which

revolves around sports. 2) By depicting trendiness and social events, increase encoding

specificity ultimately resulting in improved brand awareness and favorable purchase intentions.

4. Product Personality and Background

4.1 Physical Description

It is the affordability, style as well quality of Levi’s shoes that make them at least as impressive

as the more popular Levi’s jeans. When Levi’s shoes are paired with Levi’s jeans the overall

personality of the user comes out as fashionable/trendy/upbeat. No doubt, the brand name sells,

but Levi’s shoes will prove to be just the perfect complement to user’s personality, especially

when he is trying to appear as a fashionable person. The sports shoes have the red color Levis tag

which would give the recall/recognition of the brand. Levi’s shoes go excellently with all kinds

of jeans: they look really good: they don't totally blend in as they have a unique denim look and

color, but they tone really well and look superb with jeans.

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4.2 Character : Independent, free, sociable, genuine, different, strong-willed, active.

4.1 Style : Modern and trendy.

5. The Levis shoes as Portrayed by Advertising

The user is male, independent, sociable, authentic, genuine, energetic and enterprising, elegant,

relaxed, distinguished but discreet. The Levi’s shoes user is neither an explorer nor a cowboy but

a contemporary individual. He is mature, outgoing and independent but also an integral member

of society.

6. Product Features to Creative Positioning

6.1 Levis shoes are Different from Other Sports Shoes

Levis shoes must capitalize on the positive image of the Levis brand, i-e its product image and its

heritage: Originality, Quality, Style and Independence.

Levis shoes are a great alternative to traditional ones. They offer loads of style, but are still

sporty, making them ideal for pairing with jeans in the outdoors.

7. Creative Theme

Depiction of different occasions with assertion of an upbeat and fashionable/trendy personality.

Exhibit VII: Story Board

(The whole advertisement shows shoes only)

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Scene 6: Enjoying the disco

Scene 5: Making way through people confidently and enjoying the slide

Scene 4: Enjoying the run, encountering different people and situations energetically and without being perturbed

Scene 1: Show Levi’s shoe with tag

Scene 2: Caught dating with a girl

Scene 3: Jumping from the window and running away


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Exhibit VIII: Survey Questionnaire

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Q1 Which brand comes to your mind when you think of shoes?

Q2 Do you know about the Levi's shoes?yes no

Q3 have you ever used Levis's Shoes?Yes No

Q4 what do you think is the proper occasion of wearing Levi's shoes?office home fun events outdoor sports

Q5 Do you know about the Adidas shoes?yes no

Q6 Have you ever used Adidas Shoes?Yes No

Q7 what do you think is the proper occasion of wearing Adidas shoes?office home fun events outdoor sports

Q8 Do you know about the Nike shoes?yes no

Q9 Have you ever used Nike Shoes?Yes No

Q10 what do you think is the proper occasion of wearing Nike shoes?office home fun events outdoor sports

Q11 please rate the following brands from 1 - 5 on given attributes

Levi's Nike Adidas Puma Powersportscasualtrendyfor youngfashionableexpensivepersonalcomfortableQualityVariety

Q12 Do you remember any advetisement of Levi''s shoes?yes no

Q13 If your answer to the above question is Yes, what do you remember about the advertisement?

Q14 Do you think Levi's shoes brands is different from other brands?Yes No

Q15 If your answer to above question is yes, in what respect do you think Levi's is different?

Q16 Do you think that the other brands are different from one another?Yes NO

Q17 If your answer to above question is yes, in what respect do you think other brands differ?

Q18 Do you think that the shoe brand is depiction of your personality?Yes NO

Q19 what things do you consider while purchasing shoes (please check all related)self satisfaction trendy price store brand social approval

Q20 what is most important in above given factors?

Q21 Please provide your perticulars?

Age Bracket 10-20 20-30 40-50

Gender Male Female

Income Level < 30000 30-40 K 40-50K 50-60K 60K & above

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Documents

Advertising and Promotions Management Project