Levi's Pakistan

7/28/2019 Levi's Pakistan

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Chapter : 1 INTRODUCTION:

Levi Strauss & Co. (LS&CO.) is one of the world's largest brand-name apparel marketers with

sales in more than 110 countries. There is no other company with a comparable global presence

in the jeans and casual pants markets. Today, the Levi's trademark is one of the most

recognized in the world and is registered in more than 160 countries. The company is privately

held by descendants of the family of Levi Strauss. Shares of company stock are not publicly

traded. The company employs a staff of approximately 8,850 people worldwide, including

approximately 1,000 people at its San Francisco, California headquarters. Levi Strauss & Co

currently makes jeans in approximately 108 sizes and 20 finish fabrics. With 2007 net sales of

$4.1 billion, the company is committed to building upon strong heritage and brand equity as they

position the company for future growth.

BRANDS:

The products of Levi Strauss & Co are sold under three brands:

Levi's: Since their invention in 1873, Levi's jeans have become one of the most successful

and widely 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 brand's 1986 launch, and is now available in numerous countries.


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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.

DIVISIONS:

Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions:

Levi Strauss, North America (LSNA)

Based in the San Francisco headquarters

Levi Strauss Europe (LSE)

Based in Brussels

Asia Pacific Division (APD)Based in Singapore

Levi Strauss & Co.'s Asia Pacific Division is comprised of subsidiary businesses, licensees and

distributors throughout Asia Pacific, Middle East, Africa and Latin America. The Division

sources, manufactures and markets.

Levi's, Dockers, and Levi Strauss Signature products through 14 affiliates. The company

employs approximately 2,500 talented people working together to ensure that the apparel brands

are leaders in this part of the world. The division is comprised of both wholly owned-and-

operated businesses, licensees and distributors throughout Asia and the Pacific including

Pakistan.

COUNTRIES:

Levi's brand of products are sold in 49 countries, Dockers brand in 31 countries and our Levi

Strauss Signature brand in 4 countries:

Asia Pacific: Australia, Bangladesh, Brunei, China, Guam, Hong Kong, India, Indonesia, Japan,

Korea, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Sri Lanka, Taiwan and

Thailand.


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Middle East: Bahrain, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia and United Arab

Emirates.

Latin America: Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El

Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela

VALUES:

Levi Strauss & Co. has four major core values. These are

-Empathy

-Originality

-Integrity

-Courage

Levi Strauss & Co. says,

Our corporate values -- empathy, originality, integrity and courage -- are the foundation of our

company and define who we are. They underlie how we compete in the marketplace and how we

behave.

MISSION STATEMENT

The mission of Levis Strauss & Co. is to sustain responsible commercial; success as a global

marketing company of branded apparel. We must balance goals of superior profitability and

return on investment, leadership market positions, and superior products and services. We will

conduct our business ethically and demonstrate leader ship in satisfying our responsibilities to

our communities and to society. Our work environment will be safe and productive and

characterized by fair treatment, teamwork, open communications, personal accountability and

opportunities for growth and development.


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ASPIRATION STATEMENT:

They want a company that make them proud of and committed to, where all employees have an

opportunity to contribute, learn, grow and advanced based on merit, not politics or background.

They want their people to feel respected, treated fairly, listened to and involved. Above all, they

want satisfaction from accomplishments and friendships, balanced personal and professional

lives, and to have fun in our endeavors.

VISION STATEMENT:

When LS & Co. describe the future of Levi they are talking about a building on the foundation

they have inherited: affirming best of their Companys tradition, closing gaps that may exist

between principles and practices and updating some of their values to reflect contemporary

circumstances


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HISTORY

Today, the Levis brand is an authentic American icon, known the world over. Levi Strauss

started it 150 years ago & forever earned a place in history. In 1847, Levi Strauss, his two sisters

& mother sailed for America where they joined half-brothers Jonas & Louis in New York. Levi

joined their dry goods business. In 1853, Levi sailed to San Francisco to join dry goods business

and started selling clothing, bedding & linen to small stores in California. In 1902, Levi died and

his two nephews inherited the business. In 1910s, LS&CO. received Blue Ribbon highest

award for waist overalls in Panama. One-piece garment for women was introduced to work and

play. In 1930s, the Great Depression stroke & demand for Levis jeans, shirts and jackets

declined.

In 1991, the first original Levis store was opened in United States. In 1994, Dockers brand was

introduced in Europe. It launched its first website in 1995.In 1996; it introduced its Slates

brand, a new style for men wearing. In 1999, classic 5 pocket pants were reinvented. In 2000,

LS&CO. introduced Levis engineered jeans TM, the reinvention of jeans for the new

generation. It named No. 2 for Americas best companies for minorities. In 2003, it celebrated its

150th anniversary of its founding and 130th anniversary of invention of blue jeans.


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Chapter : 2 Products, Positioning, and Market Segmentation in Pakistan

Advertising professionals realize that the heart of any campaign is the product and the position it

holds in people's minds. Products and their brand names are newsmakers themselves.

Understanding the complexities of a brand identity and its position is no easy task. One of the

most controversial areas of product concepts is the brand extension. A new product gets to share

the name of an older, established brand. Early theorizing suggested that brand extensions would

sap market clout from the established product, but these fears proved groundless. Today brand

extensions occur not only within the company, but companies are licensing their brand names to

all kinds of products in the hope of increasing brand awareness.

SCANNING THE MARKETING ENVIRONMENT

Like other successful companies, Levis also has realized that the marketing environment

presents a never ending series of opportunities and threats. The major responsibility for

identifying significant changes in the macro environment falls to a companys marketers. More

than any other group in the company, the marketing managers of Levis are the trend trackers and

opportunity seekers. Many opportunities are found by identifying trends (directions or sequences

of events that have some momentum and durability) and mega trends (major social, economic,

political and technological changes that have long-lasting influence). Within the rapidly

changing global picture, the marketers of Levis are monitoring the following six major

Environmental Forces:

Demographic Environment

Economic Environment

Natural Environment

Technological Environment

Political-Legal Environment

Social-Cultural Environment


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Market Segmentation

Market segmentation is the selection of groups of people who will be most receptive to a product.

The most frequent methods of segmenting include demographic variables such as age, sex, race,

income, occupation, education, household status, and geographic location; psychographic

variables such as life-style, activities, interests, and opinions; product use patterns; and product

benefits. Much segmentation involves combinations of these methods. No matter how segments

are defined, however, they are characterized by considerable change over time. The readings in

this section exemplify areas of rapid change.

Target Market:

501 JEANS targets its market by evaluating the wants of customers. Mostly Levis targets its

market among the following classes:

Upper Class

Upper Middle Class

Target Market Strategy:

Target market strategy adopted by Levis is basically on having long-term relations with their

customers and to provide them with better product.

Benefits of Segmentation:

Levis has got customer oriented approach by segmentation. Company is promoting its products

effectively within segments by print media as well as electronic media, e.g. Newspapers,

Signboards, Television commercials, Internet, etc. Company is providing their customers with

stylish better quality and different product keeping in view its cost.


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Chapter : 3 MARKETING MIX:

The marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives

in the target market. Marketing-mix decisions must be made for influencing the trade channels as

well as the final consumers. McCarthy classified these tools into four broad groups that he called

the four Ps of marketing: product, price, place and promotion. Note that the four Ps represent the

sellers view of the marketing tools available for influencing buyers.

Product, Place, Price, Promotion

PRODUCT:

Product means set of tangible and intangible attributes which may include packaging, color,

price, quality and brand plus the sellers services and reputation. A product may be a place,

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 are considered to be the worlds largest

quality products. LS & CO. is basically divided into 3 sub brands i.e. Levis, Dockers and Levis

Strauss Signature. All the three brands are providing different quality products. LEVISInvented in 1873, Levi's jeans are the original, authentic jeans. They are the most successful,

widely recognized and often imitated clothing products in the history of apparel. Levi's jeans

have captured the attention, imagination and loyalty of generations of diverse individuals. As the

inventor of the category, the Levis brand continues to define jeans wear with widest range of

products available from quintessential classics, such as the famous Levi's501 Original jean to

favorite fits and styles in our Red Tab and Levi's Premium collections. DOCKERS

Launched in 1986 in the United States, Dockers brand products and marketing played a major

role in the creation of a new apparel category for men's pants and the shift to casual clothing in

the workplace. Dockers Khak is quickly became the No. 1 khaki pant brand in The United

States. In 1988, the brand launched Dockers for Women, a feminine interpretation of

Dockers brand apparel. The line offers fashionable tops, dress and casual pants and a full range

of accessoriesdesigned to fit a variety of different body types and sizes. Today, the Dockers


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brand has expanded to more than 50 countries in every region of the world with a complete

assortment of stylish and innovative products including a full line of tops, footwear,

outerwear and accessoriesfor a broad range of consumers

LEVIS STRAUSS SIGNATURE

The Levi Strauss Signature brand was launched in 2003 exclusively for consumers who shop

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. The Levi 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 ATTRIBUTES

Products are usually considered to be the No.1 factor contributing towards building goodwill of a

firm. A product should be unique, durable, reliable, comfortable and economical. Following are

some of the basic attributes ofLS&CO.S products

Variety

Features

Design

Color

Size

VARIETY

Levis products today are perceived by many as a symbol of youth, freedom, confidence,

individualism, independence & comfort. LS & CO. provides a wide variety of products including:

JEANS

Levis jeans have been present at nearly every pivotal moment in history and culture for the past

150 years.

Shirts, Cotton pants, Jackets, accessories.


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FEATURES:

Features are competitive tools that differentiate the companys products from its competitors

products.

Following are some of the main and distinctive features of Levis products.

Comfort

Levis jeans and other products are comfortable enough to be worn even at the times of protest,

war, Cultural Revolution, relative peace and pure fun.

Durability

The two figures on the patch of Levis jeans with whips in hand pulling in opposite directions,

yet the jeans remain intact; symbolize the strength and durability of the Patent rivetedclothing.

Style

Clothing means more than just fabric, thread and rivets. To clothe Oneself means to put on

something that symbolizes who you are. Levis jeans are available in different styles for men and

women.

LEVIS PORTFOLIO ANALYSIS

Levis corporate strategy involves a number of businesses, so managers can manage this

collection or portfolio of businesses by using a corporate portfolio matrix.

BCG Matrix

A strategy tool that guides resource allocation decisions on the basis of market

share and growth rate of SBUs.

Boston Consulting Group introduced the idea of BCG matrix that an organizations businesses

could be evaluated and plotted using a 2*2 matrix to identify which ones offered high potential

and which ones were a drain on organizational resources.

Horizontal Axis:

The horizontal axis represents market share which is evaluated as low or high.

Vertical Axis:

The vertical axis indicates anticipated market growth which is also evaluated as low or high.


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CATEGORIES

Based on its evaluation, the LS & CO.s businesses are placed in the following:

STARS (High Growth, High Market Share)

Stars include the businesses which are in a fast growing market and hold a dominant share of

that market. Dockers come under the head of stars as it is the major source of income for the

company.

CASH COWS (Low Growth, High Market Share)

Businesses in this category generate large amounts of cash, but their prospects for furure growth

are limited. The women apparels has got a low growth and high market share so it comes under

the Cash Cows head

QUESTION MARKS(High Growth, Low Market Share)

These businesses are in an attractive industry but hold a small market share percentage.

Levis jeans come under the head of question marks with respect to Pakistan.

PRICE:

It can be simply defined as:

The currency value charged to a Client by the company for a product or service.

Is one of the most important elements of the marketing mix, as it is the only mix, which

generates a turnover for the organization. The remaining 3p's are the variable cost for the

organization. It costs to produce and design a product, it costs to distribute a product and costs to

promote it.

List Price:

Our all products are sold at listed price, which are settled by the Levis Company (Singapore).

There is no discount to offer.


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Credit Sales:

We also deal with credit sales, but we dont Over charges to the customers, we pay it our self to

the bank (3 %). Products are only sold for cash or on credit cards

Discount:

We dont give the discount to our customers, even to the employees of the Levis. Our prices are

fixed. Payment Period & Credit

Terms:

Payment Period & Credit Terms are settled by the company.

Price Determination:

During the determination of the price company not considered the competitors, but the 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, thats

why we dont face much competition in our business. But yet there are some competitors e.g.

Pepe Jeans

Leeds (US Apparels)

GAP Jeans

Cambridge

Our prices are not influenced by the competitors.

Such a stuff, design and fashion which dont have the enough sales are recall back to the

company. Again company issues this stuff to their own outlets for sale at discount prices at 14

August


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PLACE:

Placement objectives:-.

To equalize the demand and supply of products at all places.

To provide desired products at proper place.

To fulfill the requirements of every locality according to the taste of the people.

To increase the brand equity by reaching every corner of the world.

Channels:-

Channels of Distribution:

LEVIS distributes JEANS by the Channel Members that is through retailer and wholesalers.

Retailers:

HKB: Defence, Liberty Market , Mall Market

Raja Sahib, Link Road

Pace, Gulberg

Sheikh Innayat Ullah, Anarkali.

Strategy:

Levis Strategy for Choosing channels is according to Product: Mostly Levis is limited to his

wholesalers, because the unit value is high and cost related issues occur.

Location:-

As mentioned earlier the Levi's brand of products are sold in 49 countries, Dockers brand in

31 countries and our Levi Strauss Signature brand in 4 countries:

COUNTIRES:

These countries are

Australia, Bangladesh, Brunei, China, Guam, Hong Kong, India, Indonesia, Japan, Korea,

Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Sri Lanka, Taiwan , Thailand.

Bahrain, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates Angola,

Botswana, Mozambique, Namibia , South Africa. Argentina, Belize, Bolivia, Brazil, Chile,

Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama,

Paraguay, Peru, Uruguay and Venezuela.

PAKISTAN:

In Pakistan it operates in the following cities:-

Lahore, Fasilabad, Islamabad, Karachi, Multan, Peshawar, Rawal pindi and Sialkot.


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In Pakistan there are total 24 outlets. 10 in Lahore, 1 in Faisalabad, 1 in Islamabad, 7 in

Karachi ,1 in multan,2 in Peshawar, 1 in Rawal pindi and 1 in Sialkot.

1. LAHORE OUTLETS: 10

2. FAISALABAD OUTLETS: 1

3. ISLAMABAD OUTLETS: 1

4. KARACHI OUTLETS: 7

5. MULTAN OUTLETS: 1

6. PESHAWAR OUTLETS: 2

7. RAWALPINDI OUTLETS: 1

8. SIALKOT OUTLETS: 1

STRATEGIES:

LS & CO. placed its products according to following strategies. Placing according to Class and

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

products better.

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 with

their Jeans having new and latest style and look

Promotion:

o To inform, persuade and remind the potential customers about its products

o Increase awareness and build primary demand

o To build strong brand equity.

o Build Companys image as innovator.

o To create bonds between public and Levi Strauss by helping the people.

o To create the importance of its products

Sales promotion:-

For the promotion of sales Levi Strauss & Co. adopt a very effective but comprehensive strategy.

Levis pays attention to the publicity of its products. The major source of promotion of levis is


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done by creating public relations. The sales promotion of LEVIS targets the end consumers.

Since the Levis JEANS are in growth stage in Pakistan, therefore, the promotional strategy is

based on persuading of prospective buyers. Levis uses the following promotional strategies to

promote its product.

Personal selling

Personal selling by the representative of the organization takes place face to face with final

consumers.

Mass Selling

Levis does mass selling to inform a bulk of persons by advertising.

Advertising :-

The type of advertising used by LEVIS.

Competitive advertising

The advertisement given by the LEVIS stresses on the demand of the product and enhancement

of its features.

Institutional advertising

Levis uses institutional advertising to promote companys image by saying Many Copy the Red

Tab No One can copy the Original.

Advertising mediums:-

The advertising media used by the company are

Television

Fashion Magazines, Newspapers

Internet

Bill boards, banners etc

Television & Radio:

Advertisements of Levi Strauss & Co. are very innovative and eye-catching. Buyers are attracted

towards the product. The advertisements are placed at the international level Fashion Magazines

& Newspapers: For fashion magazines and newspapers LS &Co. is a target due to its grand

brand equity, it has become a benchmark for all the others to follow. The newspaper gives

coverage to the social events in which LS &Co takes part with great interest. Whereas fashion

magazines are always dealing with the gorgeous models working with LS& Co and the unique

outfits of the models


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Internet:-

Levis provides up-to-date information to their customers through electronic media i.e. from their

website

Billboards & banners:-

Billboards and banners are also used for the advertisement purpose.

Sales force:-

Levis holds a very big sales department as it is working in many countries.

Level of Distribution Intensity:

Levis is using selective but intensive distribution level for the distribution of its products . For

example in Pakistan Levis has opened its outlets, sales offices and sales branches in major cities

like Lahore, Islamabad and Karachi.

Sales Offices and Sales Branches:

Sales offices for Levis act as a display center for their Products from where the customers 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.

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 our founder, Levi Strauss, who devoted substantial time and resources to charitable and

philanthropic activities.

GUIDING PRINCIPLES:

There are three guiding principles present behind the global giving programs:-

-The first is a belief in empowerment - the right of women and youth to identify their needs and

to participate in solving problems that affect them.

-The second is a resolve to address social biases 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 with other funders and to encourage joint

efforts by our grantees.


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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 address this

epidemic, and has since contributed more than $26 million to organizations in more than 40

countries. The Foundation and company-supported programs seek to prevent the spread of

HIV/AIDS Increasing Economic Development and Education

Opportunities

To alleviate poverty, individuals must have access to resources and possess the skills to acquire

and manage financial assets -- yet youth and women continue to struggle against social norms

and financial institutions that limit this type of access and discourage education and training.

Focusing specifically on indigent women and youth (age 10 to 25).

For Example

1. Philanthropy includes a focus on strengthening workers' rights and ultimately improving

working and living conditions in communities where third-party contractors make LS&CO.

products. The Levi Strauss Foundation provides innovative "sourcing" grants to local, regional or

global nonprofit organizations

2. LS & Co. s commitment to equal employment opportunity and diversity pre-dates today's

programs 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 "America's 50 Best Companies for

Minorities"

4. In 1991, LS &Co became the first worldwide company to establish a comprehensive ethical

code of conduct for manufacturing and finishing contractors working with the company

5. In 2003, LS &Co received the Corporate Philanthropy Award for our leadership in giving and

Volunteering in san Francisco area.

6. In 2000, LS &Co inaugurated Volunteer Day at San Francisco headquarters and have since

expanded

it beyond the United States and Canada to include sites throughout Latin America and Asia. In

2004, employees volunteered more than 50,000 hours to charitable organizations around the

world and provided $1 million in philanthropic support to local nonprofit groups


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7. In 1998, LS &Co received the U.S. President's Ron Brown Award for Corporate Leadership

for outstanding achievements in employee and community relations. LS &Co was recognized for

creating Project Change, an initiative of the Levi Strauss Foundation that combats institutional

racism.

8. In 1968, LS &Co pioneered an employee volunteer effort called "Community Involvement

Teams" or CITs. There are now 78 CITs worldwide.

9. LS &Co has played a leadership role in educational programs and policies regarding AIDS in

the workplace

10. LS &Co has made more than $27 million in grants for AIDS care and prevention. in the last

two decades and have received numerous awards and recognition for our efforts to combat the

HIV epidemic

Funding:-

The philanthropic funding is divided into two categories:

1. The Levi Strauss FoundationThe Foundation is an independent legal entity that provides grants to community-based

organizations working to create meaningful social change. The Levi Strauss Foundation funds

programs worldwide where LS&CO. has a business presence and gave approximately $10

million in 2004. The Foundation also funds disaster relief efforts, makes charitable donations to

organizations where employees volunteer, matches cash donations by employees tolocal charitable organizations, provides grants to community organizations located in LS&CO.'s

sourcing communities, and funds college scholarships for the dependents of LS&CO. employees

Employee Community Involvement Our employees are a big part of how we give back to our

communities -- we invest in what is important to them. We encourage employees globally to give

back to their communities through employee-led Community Involvement Teams and through

the sponsorship of an annual volunteer day.

2. The Levi Strauss Co. & Foundation:

The Levi Strauss Co. & Foundation provides grants to local, regional or global nonprofit

organizations. The grant areas are divided into two:

1) Core Grants

The core grant includes the following: Corporate Social Responsibility Economic & Educational

Opportunities HIV / AIDS.


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2) Non-Core Grants

Animals, Arts & Culture, Civic, Disaster Relief, Environment, Food, Shelter & Emergencies,

Health & Human Services, Holiday Grants, Recreation & Athletics, Youth Empowerment.

Employee Community Involvement:

LS&CO.'s Employee Community Involvement program has been an integral part of the

corporate social responsibility efforts for more than 35 years, and offers employees and retirees a

variety of ways to get involved. LS &Co encourages employees around the world to join one of

the 72 Community Involvement Teams (CITs). Founded in 1968, CITs are company-sponsored

and employee-led groups that partner with local charitable organizations to identify needs, plan

activities, and create volunteer and donation opportunities for LS&CO. employees and retirees.

They also help to raise awareness among employees about important issues in their communities.

In 2000, LS&CO. inaugurated Volunteer Day at the San Francisco headquarters and has since

expanded it to more than 40 locations in the U.S., Canada, Latin America, Asia and Europe. On

Volunteer Day, LS&CO employees engage in a variety of community activities ranging from

painting murals at schools to planting gardens at community centers. LS&Co : A Leader in

Social work In 1991, we became the first multinational company to establish a comprehensive

ethical code of conduct for manufacturing and finishing contractors working with the company.

This code, known as the Global sourcing and Operating Guidelines, directs business practices,

such as fair employment, worker health and safety, and environmental standards, among others.

We also work with nongovernmental organizations (NGOs) for input and recommendations to

improve our worldwide internal monitoring process. For example, we participate in the Ethical

Trading Initiative (ETI)

Happenings:-

Now- a-days for promotion following offers are present for the customers.

1) For every purchase of Rs. 3000/ on the new brand 5 the customers get a coupon. And

customers can win a new LG air conditioner.

2) 501 Scarred

What's your story? The best story wins an iPod.

3) Levi's Lady Style

Get a Swarovski designer tattoo with every purchase of "Levi's Lady Style"


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Chapter : 4 SWOT Analysis:

Strengths:

Levis enjoys high brand equity. People all around the world recognize the brand name.

Levis products are unique and innovative in the style.

A lot of variety is offered by Levis ranging from sunglasses to skirts and shirts.

The products are renowned and are considered as the most durable i.e. the long lasting

products.

Levis follows a high standard of quality.

Weakness:

Levis products are considered as very expensive. Therefore a large percentage of people are

reluctant to buy the products.

As no discounts are present and products are sold at fixed prices many customers are lost.

Levis does not provide any services like free delivery etc.

Opportunities :

Levis can do more well in the women section. This section is give less importance as

compared to the men section.

The kids section, which has been started from few years, should also be given proper

attention to gain customers.

Sales promotion can be increased by increasing the advertisements expenses so as to enjoy alarge number of customers.

Threats :

The threats that Levis faces are the competitors. Although it does not have any competitor in

Pakistan but it does have some competitors at the global level.


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Chapter: 1 Products, Positioning, and Market Segmentation in Indian market

Product Positioning and Market SegmentAdvertising professionals realize that the heart of any campaign is the product and the position it

holds in peoples minds. Products and their brand names are news makers themselves.

Understanding the complexities of a brand identity and its position is no easy task. One of the

most controversial areas of product concept is the brand extension. A new product gets to share

the name of an older, established brand. Early suggested that brand extension would sap market

clout from the established product, but these fears proved groundless. Today brand extension

occurs not only within the company, but companies are licensing their brand names to all kinds

of products in the hope of increasing brand awareness.

Market segmentation is the selection of groups of people who will be most receptive to a product.

The most frequent methods of segmenting include demographic variables such as age, sex, race,

income, occupation, education, household status, and geographic location; psychographic

variables such as life-style, activities, interests, and opinions; product use patterns; and product

benefits. Much segmentation involves combinations of these methods. Nomatter how segments

are defined, however, they are characterized by considerable changeover time. The readings in

this section exemplify areas of rapid change.

Basis of Market Segmentation Demographic segmentation Geographical segmentation Psychographic segmentation Behavioral segmentationTarget Market501 JEANS targets its market by evaluating the wants of customers. Mostly Levis targetsIts market among the following classes Upper Class Upper Middle ClassTarget Marketing Strategy


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Target market strategy adopted by Levis is basically on having long-term relations with their

customers and to provide them with better product.Benefits of SegmentationLevis has got customer oriented approach by segmentation. Company is promoting its

products effectively within segments by print media as well as electronic media, e.g.

Newspapers, Signboards, Television commercials, Internet, etc. Company is providing their

customers with stylish better quality and different product keeping in view its cost


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Chapter: 2 Marketing Mix ProductProduct means set of tangible and intangible attributes which may include packaging, color,

price, quality andbrand plus the sellers services and reputation. A product may be a place, service, good or promotion.

BrandsBrand 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 are considered to be theworlds largest

quality products. LS & CO. is basically divided into 3 sub brands i.e. Levis, Dockers and Levis

Strauss Signature. All the three brands are providing different quality products.LEVIS

The Levis brand epitomizes classic American style and effortless cool and is positioned as the

original and definitive jeans brand. Since their inception in 1873, Levis jeans have become one

of the most recognizable garments in the world reflecting the aspirations and earning the loyalty

of people for generations. Consumers around the world instantly recognize the distinctive traits

of Levis jeans The double arc of stitching, known as the Accurate Stitching Design, and the red

Tab Device, a fabric tab stitched into the back right pocket. Today, the Levis brand continues to

evolve, driven by its distinctive pioneering and innovative spirit. Our range of leading Jeanswearand accessories for men, women and children is available in more than 110 countries, allowing

individuals around the world to express their personal style. The current Levis product range

includes: Levis Red Tab Products. These products are the foundation of the brand. They

encompass a wide range of jeans and Jeanswear offered in a variety of fits, fabrics, finishes,

styles and price points intended to appeal to a broad spectrum of consumers. The line is anchored

by the flagship 501 jean, the original and bestselling five-pocket jean in history The Red Tab

line also incorporates a full range of Jeanswear fits and styles designed specifically for women.

Sales of Red Tab products represented the majority of our Levis brand net sales in all three of

our regions in fiscal years 2009, 2008 and 2007.Premium Products In addition to Levis Red Tab

premium products available around the world, Levis offer an expanded range of high-end

products. In 2009, we consolidated the management of our most premium Levis Jeanswear

product lines under a new division based in Amsterdam. This division will oversee the marketing


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and development of two global product lines: our existing Levis Vintage Clothing line, which

showcases our most premium products by offering detailed replicas of our historical products,

and Levis Made & Crafted, a recently-launched line of premium apparel. Levis brand products

accounted for approximately 79%, 76% and 73% of our total net sales in fiscal 2009, 2008 and

2007, respectively, approximately half of which were generated in our Americas region.

DOCKERS -

First introduced in 1986 as an alternative between jeans and dress pants, the Dockers brand is

positioned as the khaki authority and aspires to be the worlds best and most -loved khakis. The

Dockers brand offers a full range of products rooted in the brands khaki heritage and

appropriate for a wide-range of wearing occasions. We seek to renew the appeal of the casual

pant category by dealing up khakis masculinity and swagger and reminding men what they

love about the essential khaki pant. This positioning is reflected in the Wear the Pants

campaign launched globally in December 2009.The brand also offers a complete range of khaki-

inspired styles for women with products designed to flatter her figure and provide versatility for

a wide range of wearing occasions. Our Dockers brand products accounted for approximately

16%, 18% and 21% of our total net sales in fiscal 2009, 2008 and 2007, respectively. Although

the substantial majority of these net sales were in the Americas region, Dockers brand products

are sold in more than 50countries.

Levis Strauss Signature

Levis seek to extend the style, authenticity and quality for which our company is recognized to

more value conscious consumers through our Signature by Levi Strauss & Co.TM brand. Levis

offer products under this brand name through the mass retail channel in the United States and

Canada and value-oriented retailers and franchised stores in Asia Pacific. Levis use these

distribution channels to reach consumers who seek access to high-quality, affordable and

fashionable Jeanswear from a company they trust. The product portfolio includes denim jeans,

casual pants, tops and jackets in a variety of fits, fabrics and finishes for men, women and kids.

Signature by Levi Strauss &Co. TM brand products accounted for approximately 5%, 6% and 6%

of our total net sales in fiscal years2009, 2008 and 2007, respectively. Although a substantial

majority of these sales were in The United States, Signature by Levi Strauss & Co.TM brand

products are sold in seven additional countries in our Americas and Asia Pacific regions.


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Price

It can be simply defined as: The currency value charged to a Client by the company for a product

or service. Is one of the most important elements of the marketing mix, as it is the only mix,

which generates a turnover for the organization, the remaining 3p's are the variable cost for the

organization. It costs to produce and design a product it costs to distribute a product and costs to

promote it.

List Price:Levis all products are sold at listed price, which are settled by the Company (Singapore).There is

no discount to offer.Credit Sales:Company also deal with credit sales, but dont overcharges to the customers, company pay itour

self to the bank (3%). Products are only sold for cash or on credit cardsDiscount:Levis dont give the discount to customers, even to the employees of the Levis. Company prices

are fixed. Payment Period & Credit Terms are settled by the companyPrice DeterminationDuring the determination of the price company not considered the competitors, but the standard

that is used is considered .Companys 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 productsCompetitorsLevis products completely satisfy consumers, thats why companydont face much competition

in business. But yet there is some competitors e.g. Pepe, Lee, Wrangler, Spykar, Levis prices

are not influenced by the competitors. Such a stuff, design and fashion which dont have the

enough sales are recall back to the company. Again company issues this stuff to their own outlets

for sale at discount prices.Place Placement objectives:-

India :

In India it operates in the following cities:-


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Mumbai, Pune, Thane, Bangalore, Chennai, lukhnow, Delhi, kolcutta, Hyderabad, Surat,

Ahemdabad, Jaipur, Ludihana, Bhopal, Indore Patana , Kanpur, etc.To equalize the demand and supply of products at all places. To provide desired products at

proper place. To fulfill the requirements of every locality according to the taste of the people to

increase the brand equity by reaching every corner of the worldPromotionFor the promotion of sales Levi Strauss & Co. adopt a very effective but comprehensive strategy.

Levis pays attention to the publicity of its products. The major source of promotion of Levis is

done by creating public relations. The sales promotion of LEVIS targets the end consumers.

Since the Levis JEANS are in growth stage in India, therefore, the promotional Strategy is based

on persuading of prospective buyerLevis uses the following promotional strategies to promote

its product Personal selling- Personal selling by the representative of the organization takes place

face to face with final consumers. Mass selling- Levis does mass selling to inform a bulk of

persons by advertisingAdvertising MediumThe advertising media used by the company are Television Fashion Magazines, Newspapers

Internet Bill boards, banners etc.

1. Advertisements of Levi Strauss & Co. are very innovative and eye-catching. Buyersare

attracted towards the product. The advertisements are placed at the international level

2. For fashion magazines and newspapers LS& Co. is a target due to its grand brand equity, it

has become a benchmark for all the others to follow. The newspaper gives coverage to the social

events in which LS &Co takes part with great interest. Whereas fashion magazines are always

dealing with the gorgeous models working with LS& Co and the unique outfits of the model

3.Levis provides up-to-date information to their customers through electronic media i.e. fromtheir website

4. Billboards and banners are also used for the advertisement purpose

Levis.comLevis.com was launched by fashion retailer Levi Strauss & Co. in 1996 as an informative

company Web site that included pages on the firm's history and current operations, culture, and

fashion. Two years later, the Web site became a sales outlet for more than 120 clothing items in

3,000 different styles. However, in 1999 Levi Strauss pulled the plug on its online sales efforts,


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using the Levis.com site instead to promote the firm's brand image. The firm's market share had

slipped from 30% in 1990 to 17% in 1998, and Levi Strauss planned to use its online efforts to

regain a hold on the apparel market. The company also was prompted to begin e-tailing when

customers began complaining about not begin able to order Levi's brand products online or by

telephone. As a result, an e-commerce plan was developed and in November

of 1998 Levis.com began selling 120 items from the Levi's branded apparel line. Levis.com

faced many problems and did not fare well in its first year as an online shopping destination. The

transition from selling large quantities to retail outlets versus shipping to individual consumers

proved to be costly. The site did not sell the famous Levi's 501 Blues line until March 1999,

worried that Asian and European customers, who could not buy the jeans online and were paying

more than U.S.-based customers, would boycott the firm. Many customers continued to shop at

retail outlets to avoid online shipping charges. In addition, the online return policy also was

discouraging to customers because merchandise bought onLevis.com could not be returned at

retail stores.Sales Force: -Levis holds a very big sales department as it is working in many countries. Levis is using

selective but intensive distribution level for the distribution of its products. For example in India

Levis has opened its outlets, sales offices and sales branches in major cities like Delhi, Mumbai,

Bangalore, Kolkata and Chennai.Sales Offices and Sales BranchesSales offices for Levis act as a display center for their Products from where the customers 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


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Chapter: 3 SWOT Analysis

Levis global presence provides the organization with widespread brand recognition. Currently,

the company is extremely strong, and has numerous opportunities. However, just as there areconstant new opportunities that Levis can observe, assess, and experiment with, there arefrequent threats as well. Each of these threats has to be taken seriously.Levis must continue to recognize that our world is in a cycle of continual change. The company

has to understand its strengths and weaknesses in order to evolve with their changing desires of

the market. Levis needs to analyse their internal issues, recognize strengths and weaknesses,build upon strengths, and work on weaknesses. Furthermore, in the apparel industry, Levi

Strauss must focus externally and concentrate on current market trends. The company must ake

advantage of all available opportunities and protect themselves from potential threats.StrengthsWith all of the competition in the apparel industry, Levis differentiates itselffrom all other

competitors through the ability to brand products through strong brand image. According to Levis website, thecompany markets its products under leading brand names that are among themost successful apparel brands in the world and it is one of the most widely recognized brands in

the history of the apparel industry.Additionally, Levis currently has numerousretail locationsincluding 67 company operated stores in 10 countries. The company distributes its products in awide variety of retail formats around world including franchise stores, company owned stores,

specialty stores, chain and mass channel retailer.WeaknessOne critical weakness that Levi Strauss faces is relying too heavily on few customers. The

company actually depends on a group of key customers for a great portion of sales. Net sales to

its ten largest customers totaled about 43 % of total sales. Therefore, the company needs tochange in customer relationship.

OpportunitiesWith Levis continuous growth, many opportunities have surfaced for the company. Thecompany needs to transform management strategies so that it can generate and sustain

competitive advantage. It has been executing a number of business turnaround strategies that


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have resulted in significant improvements in performance. The company has been expanding

licensing programs to offer more products that complement its core brand product rangesTherefore, Levis will be able togenerate more profit through licensing relationships. Secondly,the company plans to increase dedicated retail stores for value-conscious consumers in Asia. The

dedicated stores are an increasingly important part of Levis strategyfor expanding distributionof its product in all regions of operations. The company currently plans to open approximately

150 new stores in Asia, 65 in Europe, and 20 stores in North America.This would help maximize

profit for the company.ThreatsAlthough Levis has experienced many opportunities and much growthThroughout its history, the company must be aware of potential threats. One critical threat that

the company faces is the decline of global cotton production. Cotton prices have increased since

global cotton production decreased in 2009.Denim is made entirely out of cotton. Therefore,

increased cotton prices affect higher raw material cost and lower company margins.Managerial ImplicationA valuable lesson that can be taken from this case is how imperative it is to keep up with your

brand image. Being content with one niche in a market such as clothing is never

acceptable. Styles, times, and preferences are changing so rapidly, that a clothing line must be

able to meet the needs of their customers. While Levis still had a market in the older generations,

they were missing out on a huge market that likes to shop. The second thing learned was how

difficult it can be to be a privately owned company. While researching the financials, it

became apparent that Levis has more debt than assets. Levis could consider going public tohelp with their amount of debt as well as their brand. Yes, they would lose a certain amount

of control, but they could gain a lot in additional resources. Many of their international stores are

publicly held as well. The third implication that can be applied to other companies would be their

option forstrategic alliance. Levis really needs some help in the area of brand image and by

collaborating with Steve Madden they have a whole new consumer market. Levis has learnedthat they cannot be comfortable in one market for too long because that alienates another market

such as the younger generations.


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ConclusionSo from all of our above discussion and explanation, we conclude that, If a company wants to

reach the heights of glory, it must have to focus strongly and efficiently on its customersneedsto create greater customer value, loyalty and satisfaction & Carefully analyses the strategies of

its competitors in order to develop and use more Efficient marketing strategies than its

competitors for greater growth and market share. And keep pace with modern trends.

RECOMMENDATIONS:

From the survey results and the data we collected from various peoples, sites we recommend

levis to work on following areas

First of all the Levis products are considered as the most durable product. Therefore thatarea is secured. But the areas which levis lacks are comfort ability and inexpensiveness.

If levis lower down its prices to some extent the sales volume could be increased to avery large extent. As we saw in the survey that people who are somewhat dissatisfied or

who are completely dissatisfied gave the reason of high prices.

The brand name of Levis is well recognized. We saw in the survey results that mostpeople just to maintain their high status buy Levis products.

Levis pays its maximum attention to the mens wear. Although the kids sections arepresent but they are not full filling the requirements much.

The kids section, which is just in start, should be given attention to attract morecustomers.

A lot of importance should be given as far as the advertisement is concerned. Theyshould stress on promoting their products especially through TV media

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Webliograpgy :

http://levi.in/

http://levi.in/store-finder/store-finder.html

http://us.levi.com/home/index.jsp

http://levi.in/Downloads/PressRelease/LevisChangeYourWorld-PressRelease.pdf

http://www.naaptol.com/top-brands/levis/jeans.html

http://en.wikipedia.org/wiki/Levi_Strauss_%26_Co
http://levi.in/http://levi.in/store-finder/store-finder.htmlhttp://us.levi.com/home/index.jsphttp://levi.in/Downloads/PressRelease/LevisChangeYourWorld-PressRelease.pdfhttp://www.naaptol.com/top-brands/levis/jeans.htmlhttp://en.wikipedia.org/wiki/Levi_Strauss_%26_Cohttp://en.wikipedia.org/wiki/Levi_Strauss_%26_Cohttp://en.wikipedia.org/wiki/Levi_Strauss_%26_Cohttp://www.naaptol.com/top-brands/levis/jeans.htmlhttp://levi.in/Downloads/PressRelease/LevisChangeYourWorld-PressRelease.pdfhttp://us.levi.com/home/index.jsphttp://levi.in/store-finder/store-finder.htmlhttp://levi.in/

Documents

Levi's Pakistan