Brand Audit

Presented By:Rahul Vatsayan (08DM031)

Rajan Jha (08DM032)Kushan Kumar(08DM018)

INTRODUCTION

Brand Audit Behavioral and Psychological nature of Brand Equity

Provides a look on current Brand Equity status

Provides an insight into marketing and advertising efforts and future requirements

Levis Strauss Established in 1853 by Levi Strauss

A premium brand in apparel segment operating globally

Headquartered at San Fransisco with total Employee Base of 10,000+

Levis Product & Brand Portfolio

DENIM PANTS NON-DENIM PANTS

SHIRTS JACKETS OTHER

LEVI’S DOCKERS DOCKERS LEVI’S SIGNATURE

LEVI’S 501 LEVI’S SIGNATURE

LEVI’S SIGNATURE

LEVI’S ENGINEERED JEANSOTHER

PRODUCT PORTFOLIO

Bran

d P

ortf

olio

EXTERNAL MARKETING ENVIRONMENT

Demographic Environment Focuses more on mature generation Does not position itself as a brand for fashion statement

Social Environment

Classification of Customers (%)

Liberated Youngsters 13

Modern Customers 18

Behind the times 20

Rebellious Youngsters 22

Orthodox Customers 27

EXTERNAL MARKETING ENVIRONMENT

Technological Environment Levis focuses on internet advertising

Levis has enhanced its distribution network through Electronic Data Interchange (EDI)

Levis Value Delivery Network Enables coordinated supply of fabric to retailers and suppliers

Focus on achieving global scope efficiency through decentralization and centralization

SITUATIONAL ANALYSIS

Levis is approaching to saturation in the Jeans Market

Development of markets distribution and sales technology has caused loss of market share

Levis biggest challenege is to cater changing consumer tastes and competition in lower and high end brands

Levis has come up with new engineered jeans and Levis 501 in response to above challenges

COMPETITOR ANALYSIS

5 Force Analysis

PRODUCT LIFECYCLE

1994 1996 1998 2000 2002 2004 2006 2008 20100

1

2

3

4

5

6

7

8

PRODUCT LIFE CYCLE: LEVI STRAUSS & CO. Ltd

TOTAL SALES

YEAR

TOTA

L SAL

ES ()

$MILL

ION

)

Data Source : www.levis.com

PRODUCT LIFECYCLE ANALYSIS

MARKET PENETRATION

Aggressive Sales Promotion

EMI Based Pricing Increased Advertising Spending Increased exclusive stores

PRODUCT DEVELOPMENT

Product Innovation

Big Pocket Jeans New Engineered Jeans 501

MARKET DEVELOPMENT

Enhanced Distribution Channels

DIVERSIFICATION

Footwear and Accessories

PRODUCT

PRESENT NEW

M

A

R

K

E

T

PRE

SEN

TN

EW

Levis Distribution Channel Management

Retail Outlet Status 500 outlets at prime locations in India Current Space: 1 million sq feet 3000 shades and design Accessories includes : Footwear/ Eye gear/ Caps/ Belts/ Wallets/ Carry

bags

Marketing Channels Focus on retail relationship

Segments Identified Trend Initiators Trend Influencer Early adopters Traditional Value driven

Selective but Intensive distribution level for distribution

Levis Pricing

LEVI'S REDLOOP, ( Trend Initiators) > Rs 8000 onwardsLEVI'S VINTAGE

PREMIUM SPECIAL EDITION (Trend Influencers) 5500 – 8000

LEVI TYPE 1, PURE BLUE, (Early Adopters) 3000 - 5500ENGINEERED JEANS, SILVER TAB

RED TAB (Traditional) 1500 - 3000

LEVI STRAUSS SIGNATURE (Value Driven) < 1200

Levis Pricing: Recent Development

Plans to focus on lower and high end by vacating the middle price segment

Premium segment will see a price rise of 15% in average pricing

Local brands entry and low growth compelled levis to vacate the middle price segment (Spykar, Killer, Wrangler)

Levis Promotion

The “TWIST” Campaign

The “ ODYSSEY” Campaign

CSR Activity with Levis Strauss Foundation

SWOT Analysis

STRENGTHS HistoryBrand nameFinance and access to international capitalManagementExpertise in the jeans industry (R&D)Distribution channels & global sourcing

WEAKNESSES High costs of brand protectionLack of control over quality (licensing)Lack of control over distribution decisions (retailers pressure to stop selling on the web)

OPPORTUNITIES: Arising of new market segmentsTechnological development lower production and coordination activitiesLow manufacturing and production costs in international marketsDevelopment in other industries such as electronic (MP3 PLAYER) could pose new opportunities for complementing new LEVI’S productsTotal market for casual wear is growing

THREATS Saturation of the jeans marketCompetition from products of the higher end of the market Economic downturns in some countriesFast changes in the consumer tastesLocal regulations on the advertisements in countries like India, chinaLack of protection of property rights Increase in the local competition

SWOT Analysis

Research Methodology

Research objectives

-Accessing the strength of brand equity(awareness/preference, effects of price)

- Core loyalty

- Profiling the brand users

- Brand image ownership (attributes, subjective considerations, emotions associated with the brand)

- Brand attitude

Study Results

DESCRIBING SURVEY RESPONDENTS

AVERAGE AGE 24.29

OCCUPATION

STUDENT 57

JOB 35

OWNED BUSINESS 08

USER TYPE

CONSERVATIVE 50

OUTGOING 23.52

CUTTING EDGE 38.23

AVERAGE INCOME 21,308.83

BRAND AWARENESS & SALIENCE

20 30 40 50 60 70 800

5

10

15

20

25

30

35

40

45

5046

3834

26

20

12

BRAND AWARENESS Vs. Top of Mind Recall

LEVIS

SPYKAR

WRANGLER

TOMR FOR LEVI’S IS 38

TOMR FOR SPYKAR IS 26

TOMR FOR WRANGLER IS 20

BRAND PREFERENCE

6227

11

BRAND PREFERENCE

SPYKARWRANGLERLEE

Results suggest: perceived alternatives to Levi'sSpyKar, wrangler, lee are the preferred alternatives

Profiling: Brand Usage

8

4639

7

BRAND USAGE

ALWAYSSOMETIMESON SPL. OCCASIONSNEVER

LEVI’S can be considered as a ‘young brand’ as average age of users is 2550% of the users are ‘outgoing’ customersUsers have enough purchasing power as average income is nearly 20,000Levi’s is considered as clothing for special occasions which represents its equity

Price Elasticity

72

28

upside elasticity

yesno

3862

downside elasticity

yesno

Results

Levi’s possesses a higher upside elasticity as compared to downside elasticityPerceived equity of the brand is representedDifference between upside and downside elasticity is positive (72-62=10)Sales do not drop much if price is increased

Choice & Brand Equity

36.67

22.82

25.17

18.26

CUSTOMER TRADE-OFF

BRAND NAMEDESIGNPRICEFABRIC QUALITY/FIT

RESULTS

Brand name plays the most important role in customer buying process‘Part worth’ of each of the variables is clearly explained

Brand Image Ownership

32.35

35.295.88

29.41

CUSTOMER ASSOCIATION WITH LEVI'S

TRENDY DENIMWEARGOOD PRODUCT QUALITYECONOMICALHIGH-END DEN-IMWEAR

RESULTS:Customers consider Levi's as a brand with good product quality majorly(35.29)These enables us to paint a good picture of how customers ‘see’ Levi's as a brand.

Brand Attitude

Importance of benefits/benefit claims to customers: (% of respondents)

Benefits essential Desirable Not required

Brand name 52.94 44.11 5.88

Design/style 47.058 44.11 11.76

Price 41.17 47.058 14.70

Product quality 61.76 35.29 5.88

Comparative Analysis : Brand Name

BRANDS DELIVERS BENEFIT

OKAY JOB DOES NOT DELIVER

LEVI’S 50 29.41 20.58

SPYKAR 47.05 41.17 14.70

WRANGLER 26.47 50 26.48

LEE 47.05 29.41 23.52

RESULTS:Levi’s is the leader in delivering the brand name benefit20.58% of respondents feel Levi's does not deliver benefit Only 14.70% of respondents feel that SpyKar does not deliver benefit at all

Comparative Analysis :Design/Style

BRAND DELIVERS BENEFIT OKAY JOB DOES NOT DELIVER

LEVI’S 61.76 14.70 26.47

SPYKAR 23.52 52.94 26.47

WRANGLER 32.35 44.11 20.58

LEE 32.35 32.35 38.23

RESULTS:Levi’s again emerges to be a leader in delivering the design/style benefitOnly 20.58% of respondents say wrangler does not deliver the benefit at all as compared to levi’s 26.47%

Comparative Analysis: Price Benefit

BRAND DELIVERS BENEFIT OKAY JOB DOES NOT DELIVER

LEVI’S 47.05 29.41 23.52

SPYKAR 41.17 38.23 20.58

WRANGLER 26.47 41.17 32.35

LEE 29.41 32.35 41.17

LEVI’S is facing tough competition in this category as only 20.58% of respondents feel SpyKar does not deliver benefit as compared to 23.52% .

Comparative Analysis: Product Quality

BRAND DELIVERS BENEFIT OKAY JOB DOES NOT DELIVER

LEVI’S 52.94 20.58 29.41

SPYKAR 50 32.35 20.58

WRANGLER 29.41 41.17 32.35

LEE 35.29 26.47 41.17

Thank You