INDEX

Sr. No. Name of Chapter Page No.

1 Introduction:

Classification About Levi’s Raw Material Manufacturing Process

2

2 Objective of Study 19

3 Hypothesis 27

4 Research Methodology 29

5 Data Collection 31

6 Sampling 35

7 Data Presentation & Analysis 38

8 Conclusion 45

9 Recommendation 47

10 Limitation 49

11 Bibliography 51

Chapter - 1 INTRODUCTION

1

INTRODUCTION

In today's hi-tech world, outward appearance gives the first impression. That is, how you

look is of much importance than what you are. Especially in the market place, your

dressing has a good impact so as to how other people judge you. One of the most

important parts of your dressing is a pair of jeans. That makes you a complete person.

The word “jeans” comes from the French phrase bleu de Genes, literally the blue of

Genoa. Jeans are pants or trousers, made from denim. Jeans are now a very popular form

of casual dress around the world, and have been so for decades. Jeans are also very

popular among teenagers. Jeans come in many styles and fits based on the manufacturer.

Rises in jeans (distance from the crotch to the waistband) range from high-waist to super

Low-rise. Jeans for men usually have a longer rise and zipper, whereas women have a

shorter rise and zipper, although expectations do exists and this is largely on the basis of

current trends.

Jeans can be worn very loose in a manner that completely conceals the shape of the

wearer’s lower body, or they can be snugly fitting and accentuate the body. Decades

before jeans became a staple of fashion; jeans generally fit quite loosely, much like a pair

of bib overalls without the bib. The blue jeans have basically remained the same since its

invention in the 1950s, but they also have been versatile enough to meet the market

demands. Blue jeans in the form we know them didn’t come until the middle of the

nineteenth century. Levi’s Strauss, an enterprising immigrant who happened to have a

few bolts of cloth on hand, recognized a need for strong work pants in the mining

communities of California. He first designed and marketed “Levi’s” in 1850, and they

have stayed essentially the same ever since; there have been only minor alterations to the

original design.

Original Levi’s did not contain rivets. A tailor by the name of Jacob Davis invented

riveted pants at the request of a miner who complained that regular pant were not rugged

enough to hold his mining tools. David subsequently granted Strauss the use of his rivet

idea, which was patented on May 20, 1873. Few other changes were made over the next

century. Zippers replaced button flies in 1920, although later button flies had a

2

resurgence of popularity. In 1937, the rivets on the back pockets were moved inside in

response to the complaints from school boards that the jeans students wore were

damaging chairs and from cowboys that their jeans were damaging their saddles. In

the1960s, they were removed entirely from the back pockets.

3

CLASSIFICATION

Levi’s company has started its various brands in shirts, jeans, jackets, lowers and

undergarments also. Among these, jeans are the most popular in Levi’s. Levi’s has the

following jeans:-

Levi’s Sykes

Levi’s Red Tape

Levi’s Red Loop

Levi’s Signature

Levi’s Workers offers both shirts and jeans for its customers. Men’s and

Ladies prefer different fittings in Levi’s jeans. Men usually prefer straight fit,

slim fit and loose fit. Women may opt for straight fit, narrow fit and boot cut.

Levi’s offers various fits in jeans in order to match the tastes of its different

kinds of customers. The fittings offered by Levi’s are:-

1. 501 Button Fly:-

The original Levi’s 501 jeans are the most worn jeans in the world. The jeans are pre-

shrunk and broken-in for a perfect fit. It fits below the natural waist and legs are straight

with a 17¼ opening. The jeans are made of 100% cotton denim.

4

2. 501 Shrink to Fit:-

They are the original 501 Button Fly jeans that feature the original Shrink to fit rigid

denim fabric. This is not a pre-shrunk fabric. It fits below the natural waist and thighs are

regular. The legs of the jeans are straight with a 17¼ opening. The jeans are made of 100%

cotton with a button fly.

3. 505 Regular:-

Levi’s Strauss & Co. replaced the button fly on the 501 with a zipper to create the

Levi’s 505 jeans. The jeans are pre-shrunk and broken-in for a great fit. It sits at waist and

legs are straight with a 16¾ opening. Stonewashing is not done on the fabric. The jeans are

made of 100% cotton with a zip fly.

5

4. 511 Skinny:-

Levi’s 511 jeans are a new style of jeans from Levi. This narrow jean has a slim leg

that sits below the waist. This jean is styled with wider belt loops and new pounded

hardware. The jeans have straight legs with a 16” opening. The jeans are made of 99%

cotton and 1% spandex with a zip fly.

5. 512 Slim Fit:-

The Levi’s 512 jeans are a style that you will feel at home in. It is made for guys with

skinny legs that will still want their jeans to sit at their natural waistline rather than hanging

down. The Levi’s 512 has a slim cut in the leg that tapers down to a narrow ankle opening

6

for an overall slim cut look. The legs of the jean are tapered with a 15” opening. The jeans

are made of 100% cotton with a zip fly.

6. 514 Slim Straight:-

Levi’s 514 Slim Straight jeans are based on the popular 527 boot-cut fit. The 514 is a

straight leg cut with a slim silhouette. Its waist sits low on the hips and thighs are slim. The

legs are straight with a 17” opening. The jeans are made of 100% cotton with a zip fly.

7. 517 Boot Cut:-

7

Levi’s 517 has got the same great slim fit with a boot cut leg opening, but there is an

option of the live-in look and soft feel of one of the most popular jean washes today. It fits

closely at the waist and thighs are slim but not tight. The legs have boot-cut with an 18¼

leg opening. The jeans are made of 100% cotton with a zip fly.

8. 527 Low Boot Cut:-

Levi’s 527 are a part of the new Low Rise line-up. The 527 is a boot-cut style yet with

a straight leg to not make things look too baggy on you. The thighs are regular and the leg

has a boot-cut with a 19” opening. All fabrics have sandblasting and slight whiskering on

the jeans. The jeans are made of 100% cotton with a zip fly.

8

9. 550 Relaxed Fit:-

Levi’s 550 jeans is the jean for everybody and everyday. Easy fit in the seat and thighs

with slightly tapered legs and traditional 5-pocket styling. The leg of the jean is slightly

tapered with a 16½ opening. The jeans are made of 100% cotton denim with a zip fly.

10. 559 Relaxed Straight:-

Levi’s 559 are perfect for the people who want a relaxed fit jean but prefer a straight

leg instead of a tapered leg. The jeans have a relaxed fit to comfort in your seat and thigh

areas. The legs of the jean are straight with a 18½ opening. The jeans are made of 100%

cotton denim with a zip fly.

9

11. 560 Comfort Fit:-

Levi’s 560 Comfort fit jeans give you the loose look without being too baggy. They

have plenty of room in the waist, seat and thigh, and taper slightly at the ankle. It sits at the

waist and legs are slightly tapered with a 16” opening. The jeans are made of 100% cotton

denim with a zip fly.

10

ABOUT LEVI’S

Founder, Levis Strauss and Co.

Levis Strauss and Co. (LS&C) is a private held company known worldwide for its Levis

brand of Denim Jeans. It was found in 1983 when Levis Strauss came from Buttenheim,

Franconia, to San Francisco, California to open a west coast brother` New York dry

goods business. Although, the company began producing denim overalls in the 1870s,

modern jeans were not produced until the 1920s. The company briefly experimented with

employee ownership and a public stock listing, but remains owned and controlled by

descendants and relatives of Levis Strauss` four nephews. Levi’s Jeans have been a top

clothing collectible for about 20 years. The Signature by Levis Strauss and Co. brand was

launched in 2003 exclusively for value-conscious consumers. The brand provides these

consumers with high-quality, affordable and fashionable jeans wear. About 20 years later,

a solvent Levi Strauss and a Nevada tailor joined forces to patent an idea the tailor had

for putting rivets on stress points of workman’s waist high overalls, commonly known as

jeans. Levi Strauss chose to use the stronger denim fabric and cotton duck, putting his

own name on the product. Later the duck fabric was dropped as consumers found denim

more comfortable, particularly after washing. Washing creates the faded bloom on the

indigo blue dying that we all love.

11

RAW MATERIALS

Jeans are made out of 100% cotton, including the threads. Polyester blends are

available; however, the over-whelming majority of jeans sold are 100% cotton. The most

common dye used is synthetic indigo. The belt loops, waistband, back panel, pockets and

leggings of a pair of blue jeans are all made of indigo-dyed denim. Other features of jeans

include the zipper, buttons, rivets and a label. Rivets have been traditionally made of

copper, but the zippers, snaps and buttons are usually steel. Designer labels are often tags

made out of cloth, leather, or plastic, while others are embroidered on with cotton thread.

12

MANUFACTURING PROCESS

The first two steps in jeans manufacture are carding and spinning. In carding, the cotton

is put through a machine with bent wire brushes. The brushes clean, straighten,

disentangle, and gather the cotton threads into sliver. After several slivers are joined

together, they are put on spinning machines that twist and stretch the cotton to form yarn.

Manufacturers must therefore constantly seek ways to keep demand for blue jeans high.

Believing that the decrease in demand reflects the changing needs of an aging population,

jeans manufacturers have begun to cater to the mature customer by providing roomier,

more comfortable jeans. Sally Fox, an entomologist, has developed cottons that naturally

come in beige, brown and green. The Levi Strauss Company now markets multicolored

jeans as well. The company hopes to ride the popular wave of environmentalism, even

advertising their new product on recycled denim.

Although blue jeans have remained basically the same since they were first designed, they

have always been versatile enough to meet market demands. Since futuristic, yet familiar,

“Levi’s” appeared in the movie Star Trek V, it can be surmised that manufacturers as well

as the public expect blue jeans to be around indefinitely. Denim unlike many types of cloth

(which are woven in one place and sent to another for dying), is woven and dyed at one

location.

Preparing the cotton yarn :

13

There are several steps between ginned cotton (cotton after it has been picked from

field and processed) and cotton yarn. The incoming cotton is removed from the tightly

packed bales and inspected before undergoing a process known as carding.

In this process, the cotton is put through machines that contain brushes with bent wire

teeth. These brushes called cards clean, disentangle, straighten and gather together the

cotton fibers. At this point, the fibers are called slivers.

Other machines join several slivers together, and then pulled and twisted, which serves

to make the threads stronger. Next, these ropes are put on spinning machines that further

twist and stretch the fibers to form yarn.

Dyeing the yarn:

Some cloths are woven and then dyed, but denim is usually dyed with chemically

synthesized indigo before being woven. Large balls of yarns, called ball warps, are

dipped in the indigo mixture several times so that the dye covers the yarn in layers.

These layers of indigo dye explain why blue jeans fade slightly with each washing.

Although the exact chemicals used in such dyeing procedures remain trade secrets, it is

known that a small amount of sulfur is often used to stabilize the top or bottom layers of

indigo dye.

14

The denim yarn is then slashed; i.e. it is coated with sizing (any one of a variety of

starchy substances) to make the threads stronger and stiffer. Once this operation is

complete, the yarn threads are ready to woven with undyed filling yarn threads.

Weaving the yarn:

The yarn is then woven on large mechanical looms. Denim is not 100% blue or the

blue dyed threads forming the warp are combined with white threads forming the

weft (shorter, horizontal threads). Because denim is woven with the blue threads packed

closer together than the white threads dominate. Although mechanized loom make use of

the same basic weaving procedure as a simple hand loom, they are much larger and

faster. A modern “shuttle-less” loom may produce as much as 3,279 yards (3000 meters)

of cloth 3.28 or 4.37 yards (three or four meters) wide in a single week. As much as 1,093

yards (1000meters) of clothing may be rolled into a single huge bolt.

At this point, the denim is ready for finishing, a term referring to a variety of

treatments applied to cloth after it is woven. With denim, finishing is fairly simple. The

cloth is brushed to remove loose threads and lint, and the denim is usually skewed in a

way that it will prevent it from twisting. The denim may then be sanforized, or preshrunk.

Preshrunk denim should shrink no more than 3% after 3 washings.

Making the jeans:

Once the desired design is selected, patterns from the design are cut from heavy

paper on the card board. Up to 80 different sizes are possible from one pattern. The

pieces of denim are then cut with high speed cutting machines from stacks 100 layers

thick. Excluding rivets, buttons and zippers, pair of jeans contains about 10 different

pieces, from the pockets to the leg panels to the waistband and bolt loops.

The pieces of denim are ready to be sewn at this point. Sewing is done in an

assembly line fashion, with rows of industrial human-operated sewing machines. Each

sewer is assigned a specific function, such as making only black pockets. First, the

various pockets and belt loops are assembled. Next, one sewer attaches the pockets to the

leg seams, another then sews the leg seams together, and still another attaches the waist-

15

band. Once the waist-band is secure, the belt loops may be stitched on and the buttons

attached. If the jeans include a zipper, it is then sewn into place, and the pants are

hemmed. Finally, the rivets are placed in the appropriate places and the maker’s label is

sewn at last.

Some jeans are pre-washed or stone-washed to alter the appearance or texture of the

finished jeans. Pre-washing involves the jeans in industrial detergent for a short time to

soften the denim. Stone-washing also means washing the jeans, but pumice is added to

the load, resulting in a faded appearance. Small stones produce an even abrasion, while

large stones highlight the seams and pockets and produce a more uneven appearance.

The complete pair of jeans is then pressed. They are placed into a large pressing

machine that steam irons the entire garment at once in about a minute. A size tag is

punched into the material and the jeans are folded, stacked and placed in boxes according

to style, color and size before being sent to warehouse for storage. When the jeans are

selected to be sent to a store, they are put in large shipping cartons and sent on freight

trains or trucks.

By Products/Waste:

The process of cloth making involves treating the fabric with a number of chemicals

in order to produce clothing with such desirable characteristics such as durability,

16

colorfastness and comfort. Each step of finishing the cotton fabric (dyeing, sanforising,

etc) produces byproducts, most of which are biodegradable.

By-products of denim manufacture include organic pollutants, such as starch and dye,

which can be treated through biological methods. The organic wastes may not be dumped

into streams or lakes because of their high biochemical oxygen demand. To decompose,

such waste materials utilize so much oxygen that the life forms in the body of water would

be denied oxygen necessary for survival. Denim manufacturers process their own waste in

compliance with all relevant government regulations.

Quality Control:

Cotton is a desirable natural fiber for several reasons. Cloth made from cotton is wear

resistance, strong, flexible and impermeable. Jeans are only as good as the cotton that goes

into them, however several tests exists for cotton fiber. All bales of cotton are inspected by

the denim manufacturer for the desired color, fiber length and strength.

Strength is the most important factor in jeans. It is measured by using a weight to pull

it. When the fiber breaks, the force which is used to break is measured. The cotton’s

strength index (weight of weight divided by weight of sample) is then calculated.

The finished denim cloth is carefully inspected for defects. Each defect is rated on a

Government-defined scale ranging from one point for very small flaws to four points for

major defects. Although government regulations allow cloth with a high defect rating to be

sold. In reality, customers will not accept denim with more than seven to ten defect points

per square meter. Poor cloth is sold as damaged. Denim is also tested for durability and its

tendency to shrink. Samples of cloth are washed and dried several times to see how they

wear.

Jeans are also inspected after they are completed. If a problem can be corrected, the

jeans are sent back for re-sewing. The pair is then inspected again and passed. The buttons

are inspected to ensure that they and button holes are of the proper size, the snaps, metal

buttons and rivets are checked for durability and their ability to withstand rust. The zippers

must be strong enough to withstand the greater pressures of heavy cloth, and their teeth

durability must be checked as well. This is done by subjecting a sample zipper to a lifetime

of openings and closings.

17

Chapter - 2

OBJECTIVE OF STUDY

18

OBJECTIVE OF STUDY

The following are the main objectives for studying the market of Levi’s Jeans:-

To study the profit with respect to the marketing of Levi’s jeans.

To study the marketing trend of Levi’s jeans.

To collect data and treat it specifically so as to conclude and provide adequate

suggestion.

The objective of the study is also made to understand the 4 marketing P’s which are used in

19

Levi’s jeans. The four marketing P’s are:-

Product

Price

Place

Promotion

1.) Product:-

The Product is the most tangible and important single component of the marketing

program. The product policy and strategy is the cornerstone of a marketing mix. Without

a product, there is nothing to distribute, nothing to promote, nothing to price. If the

product fails to satisfy consumer demand, no additional cost on any of the other

ingredients of the marketing mix will improve the product performance in the market

place.

To the marketer, products are the building blocks of a marketing plan. Good

products are the key to market success. Product decisions are taken first by the marketers

and these decisions are central to all other marketing decisions such as price, promotion

and distribution. Product is the vehicle by which a company provides consumer

satisfaction. It is the engine that pulls the rest of the marketing program.

Every product has a life cycle. The product life cycle concept derives from the fact

that a product’s sales volume and sales revenue follow a typical pattern of five-phase

cycle. The life cycle is a fact of existence for every product.

The product life cycle should be termed as product market life cycle as it is related

to a given particular market. Every product moves through a life cycle having 5 stages:-

Introduction, Growth, Maturity, Saturation and declining (some include saturation into

maturity). The life-cycle gives the sales revenue and profit margin history of a product

over a time frame.

a.) Introduction:-

In the early stage, when the product is introduced in a Market, sales revenue begins

to grow but rate of growth is very slow. Profits may not be there as we have low sales

volume and large production and distribution cost. We may require heavy advertising and

20

sales promotion. Products are bought cautiously on a trail basis. Weaknesses may be

revealed and they must be promptly removed. The cost of market development may be

considerable. In this stage, product development and design is considered critical.

b.) Growth:-

It is the period during which the product is accepted by consumers and traders.

During growth stage, the rate of increase of sales turnover is very rapid. Profits also

increase at an accelerated rate. In spite of competition, we may have rising sales and

profits. The firm gives top priority to sales volume and quality maintenance may have

secondary preference. For marketing success, manufacturing and distribution efficiency

are the vital factors. In mathematical terms, the end of growth period is at the inflection

point on the sales curve. In this stage, effective distribution and advertising are

considered key factors. Word of mouth advertising leads to more new users. Repeat

orders are secured.

c.) Maturity:-

During this stage, keen competition brings pressure on prices. Increasing marketing

expenditure and falling prices (in the bottle of market share) will reduce profits.

Additional expenditure is involved in product modification and improvement or

broadening the product line. Marketers have to adopt measures to stimulate demand and

face competition through additional advertising and sales promotion. Overall marketing

effectiveness becomes the key factor in the stage of maturity. Low prices, increasing

competition, rising marketing cost and declining profits are the features in this stage.

d.) Saturation:-

The Saturation point occurs in the market when all potential buyers are using the

product and we have only replacement sales. Consumption achieves a constant rate and

marketers have to concentrate exclusively on a fight for market share (with higher

marketing expenses). Prices may fall rapidly and profit margins may become small unless

the firm makes substantial improvements and realizes cost economics.

21

e.) Decline Stage:-

Once the peak or saturation point is reached, product inevitably enters the decline

stage and becomes obsolete. It may be gradually displaced by some new innovation.

Sales drop severely, competition dwindles and even then the product cannot stand the

market. It may be priced out of the market by other new innovations. A marketer is

expected to keep new products ready to fill up the gap created by the demise of existing

products. At this stage, price becomes the primary weapon of competition, and we have

to reduce the expenditure considerably on advertising and sales promotion. Cost control

becomes the key to generate profit.

2.) Price:-

Economist defines price as the exchange value of a product or service always

expressed in money. To the consumer, the price is an agreement between seller and buyer

concerning what each is to receive. Price is the mechanism or device for translating into

quantitative terms (Rupees and Paisa) the perceived value of the product to the customer

at a point of time. We shall define the price as the amount charged for the product or

service including any warranties or guarantees, delivery, discounts, services or other

items that are part of the conditions of sale and are not paid separately. To the buyer,

price is a package of expectations and satisfactions. Thus, price must be equal to the total

amount of benefits (physical, economic, social, ecological and psychological benefits).

Any change in the price will also bring about alterations in the satisfaction side of the

equation. To the ultimate consumer, the price he pays for a product or service represents

a sacrifice of purchasing power. Prices paid by resellers are also sacrifices. Price is the

only objective criteria (although an imperfect measuring rod) for the consumer for

comparing alternative items and making the final choice. To the consumer, price is a

product disfeature, i.e., a feature which he disapproves. However, to the seller, price is a

source of revenue and a main determinant of profit. To the seller, it is a product feature

most welcome.

Price charged for various jeans in Levi’s:-

22

NAME OF JEANS PRICE (PER PAIR)

SYKES (Rs.449-1600)

LEVI`S (Rs.2999-6000)

RED LOOP (Rs.3500-7000)

RED TAPE (Rs.1540-4000)

SIGNATURE (Rs.499-1499)

3.) Place:-

In the marketing mix, place is also one of the most important P’s. Place consists of

what are the channel of distribution adopted by the Levi’s jeans. Where the outlets of the

product located is market. It also gives us the idea that where and which warehouse is

needed. It also tells us what the inventory level is at each place where the product is

transported. Distributors and retailers are the channels of distribution used in Levi’s

jeans.

4.) Promotion:-

Promotion is the process of marketing communication to inform, persuade, remind

and influence consumers or users in favor of product or service. Promotion has 3 specific

purposes. It communicates marketing information to the consumers, users and resellers. It

is not enough to communicate ideas. Promotion persuades and convinces the buyer and

influences his/her behavior to take the desired action. Promotional efforts act as powerful

tools of competition providing the cutting edge of its entire marketing program.

Promotion has been defined as “the co-ordinate self-initiated efforts to establish channels

of information and persuasion to facilitate or foster the sale of goods or services, or the

acceptance of ideas or points of view”. It is a form of non-price competition.

The promotion mix includes four ingredients, viz.

Advertising

Publicity

Personal Selling

All forms of Sales Promotion

23

a.) Advertising:-

It is defined as any paid form of non-personal presentation and promotion of ideas,

goods and services by an identified sponsor. It is impersonal salesmanship for mass

selling, a means of mass communication.

b.) Publicity:-

It is non-personal stimulation of demand for a product, service or a business unit by

placing commercially significant news about it in a publication or obtaining favorable

presentation of it upon radio, television, or stage that is not paid for by the sponsor.

c.) Personal Selling:-

It is the best means of oral and face-to-face communication and presentation with

the prospect for the purpose of making sales. There may be one prospect or a number of

prospects in personal conversation.

d.) Sales Promotion:-

It covers those marketing activities other than advertising, publicity and personal

selling that stimulate consumer purchasing and dealer effectiveness. Such activities are

displays, shows, exhibitions, demonstrations and many other non-routine selling efforts at

the point of purchase. Sales promotion tries to complement the other means of promotion

given above.

The promotional strategy used for Levi’s jeans are shown in the table given below.

STRATEGY SALES ( in % )

DISCOUNT 30%

ADVERTISING 40%

PUBLICITY 10%

QUANTITY SCHEME 20%

The table shows the changes in sales due to promotional activities.

24

25

Chapter - 3

HYPOTHESIS

26

HYPOTHESIS

Levi’s Jeans also promotes ladies brands, but the percentage of sales in ladies is limited to only 15% as compared to 85% sales in men’s.

The margin of profit in these items is adequate to provide trade satisfaction.

Levi’s and Levis Signature (Economic Range) jeans have a major market.

27

Chapter – 4

RESEARCH METHODOLOGY

28

RESEARCH MEHODOLOGY

The list of various jeans of Levi’s is taken from the market. For this study, primary data

is collected through structured questionnaire and then analysis of the data collected out

with various statistical tools.

29

Chapter – 5

DATA COLLECTION

30

DATA COLLECTION

All the marketing researchers can tap two sources of data for investigation:-

Internal Source

External Source

Facts and Figures are raw own records, registers, documents, etc. Sales records,

invoices provide valuable information regarding sales by products/ territories/ customers.

Research starts with internal data and it is inexpensive.

Preliminary or explorative phase of research usually taps the internal sources

initially. All other sources of information are external sources of data.

Another way of classifying the sources of information is:-

Primary Data

Secondary Data

Primary data is obtained from original sources by researchers. It is personally

developed. It gives latest information. Primary data is not a published source of data, but

it is a data which is to be created.

Secondary data is compiled with someone more other than the Researcher (not

personally developed) for the purpose not directly related to research currently under

consideration. It is an already existing data. It is published or semi-published data.

31

SURVEY TECHNIQUE

Questionnaire:-

The survey technique is intended to secure one or more items of information from a

sample of respondents or informants representative of a large group. The information is

regarded on a form known as questionnaire or a schedule or a Bank form of inquiry. As

data is gathered by asking questions to persons who are thought to have desired

information, it is called questionnaire technique also.

In the questionnaire or survey method, we can have communication with the

informant in 3 alternative ways: - 1.) through emails, or post office, 2.) through

telephone, 3.) through personal interview.

The market share of Levi’s in Nagpur city is quite less. Mostly college-going

students and a bunch of adults who like the fitting of Levi’s jeans wear them. Every third

student wears a pair of Levi’s jeans. People in nagpur usually prefer Levis Signature

(Economic Range) more than the original Levi’s because of the cost factor. To calculate

the market share, we have done an estimated study of nagpur. In this study, the users are

divided into 2 broad categories.

Students

Adults

Almost all college going students wear jeans. Adults are divided into two categories.

Office going

College going

The following chart will give you perfect idea of the market share of “Levis Outlet”

as per Nagpur city is concerned.

A.

No. of Colleges No. of Students Annualreq./student

30 4,00,000 2

32

B.

No. of college going population:- 4,00,000

No. of Levi’s jeans wearing (30%):- 1,20,000

Annual requirement is 2@ Levi’s:- 2,40,000

C. Total Market Potential of Levi’s jeans in Nagpur city: - 15, 93,225

D. Annual Production Capacity: - 65,000

E. Market Share: - 4%

The total Market share of our product is 4% of the Market Potential

which can be captured easily.

33

Chapter -6

SAMPLING

34

SAMPLING

A Sample is a selection of units from the entire group called the population or universe of

interest. In marketing, a sample is a particular segment or part of the market and it is

focus of taking marketing decisions which can be applied to the entire market. The units

included in the sample may be individual respondents, house-wives, families, dealers,

firms, and city blocks and so on. The units included in the sample can be easily

approached to obtain the desired information for taking marketing decisions.

A sampling plan is a vital element of our research design. The sampling plan must

indicate the following:-

Sampling unit, i.e. who is to be our respondent or who is to be surveyed.

Sampling procedure, i.e. how many respondents are to be contacted under the

survey?

Sampling procedure, i.e. how they are to be selected.

Sampling media, i.e. how they are to be approached for obtaining the desired

information.

Types of Sampling:-

Simple random sample

Stratified sample

Area sample

Quata sample

For the collection of data we have used the method of area sample.

35

Sample No:

The Sample no. for the study of average sale of Levis Jeans in Nagpur Division

we have taken 20. The study tells us what are the jeans purchased by consumer from

retailer. The data will show us the sample of retailer in East Division.

Name of Jeans Average Sale per day

Levi’s 4 Signature 15 Sykes 8 Red Loop 11 Red Tape 6

The Sample no. shows us what the jeans preferences are by customer related

East Division.

36

Chapter – 7

DATA PRESENTATION & ANALYSIS

37

DATA PRESENTATION & ANALYSIS

1. Levi’s jeans used by Female and Male.

Gender Female Male

Users 15% 85%

It was found that male users of Levi’s jeans are more than that of the female

users.

38

2. Purpose of wearing Levi’s jeans.

Purpose Percentage of users

Style 20% Fit 45% Comfort 25% Other 10%

It was found that large number of customer used Levi’s jeans for fitting as

well as comfort.

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3. Data representing product preference.

Name of Jeans Percentage

Red Loop 20% Sykes 15% Levi’s 30% Signature 25% Red Tape 10%

The data reveals that consumer preferring Levi’s and Signature

are more than that of others.

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4. Average sale per day taking sample no. 20 of East Division.

Name of Jeans Average Sale per day

Levi’s 4 Signature 15 Sykes 8 Red loop 11 Red Tape 6

The sample shows us that average sale of Signature and Red

Loop is higher in the East Division.

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5. Data representing Margin of Profit

Name of Jeans Selling Price Cost Price Profit Levi’s 5999 4500 1499 Signature 999 750 249 Red Loop 3999 3000 999 Red Tape 1799 1349 540 Sykes 799 600 199

The data reveals that profit margin in Levi’s is more.

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6. Data representing Promotional Strategies

Strategy Sale ( in % )

Discount 30 Advertising 40 Publicity 10 Quantity Scheme 20

The data shows various promotional strategies used by the company to promote

these products.

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Chapter – 8

CONCLUSION

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CONCLUSION

The data obtained and analyzed shows that the percentage of using Levi’s jeans by

Male category is more than that of Female category. It also tells us that customer use

Levi’s for fitting as well as comfort than that of style and other purpose.

The profit margin in Levi’s jeans is more. Profit of original Levi’s jeans is more

than that of other Levis jeans like Signature and Sykes.

The sales volume of Levi’s jeans increases upto 10% year after year by promotional

strategies. Advertising is one of the best strategies to attract the customer.

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Chapter – 9

RECOMMENDATION

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RECOMMENDATION

The Levi’s jeans which are used by the consumers in day to day life should focus more

on quality, price and more promotional strategy. Consumers are more quality oriented by

paying less cost. So the branded company which have high price but good quality should

try to reduce their selling price. The company should work to improve the quality of

fabric used in Levi’s so that their sales also increase.

The table shows demand of products by consumers.

JEANS DEMAND LEVI`S 30% SIGNATURE 40% SYKES 15% RED TAPE 10% RED LOOP 5%

Consumers demand for signature (economic range) is more than that of Levi’s

because of the cost factor. Levi’s jeans have been limited only to a selected number of

people which includes only adults. The demand of Levi’s jeans preferred by males is

more than that of female. To attract female brands, the retailers should use more

promotional strategy like advertising and improve their quality level. They should also

improve the quality level to maintain this demand.

The jeans should also promote more strategies to increase the sales volume of the

product by offering trade discount as well as cash discount to buyers. In this promotional

strategy, packaging of jeans should also be considered to attract the customer. They

should make the package in such a way so that it will be convenient for the customer for

handling. Packaging should be such that customer can easily differentiate product from

the rival product.

Advertising of jeans should also be made through media channels such as news

paper, T.V., Hoardings, etc.

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Chapter – 10

LIMITATION

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LIMITATION

The scope of study is related only to Nagpur Division. It has not considered the

other possible market area of Levi’s jeans.

The data of sales which is collected is limited only for three years.

The preference of product by retailers is taken from one part of area in Nagpur.

The most important is that the study tells us about Levi’s jeans. It doesn’t gives us

any idea of other brand of jeans.

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Chapter – 11

BIBLIOGRAPHY

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BIBLIOGRAPHY

MARKETING MANAGEMENT Philip Kotlar

CONSUMER BEHAVIOR- Schiffman & Kamik

MARKETING MANAGEMENT-

R.K. Malhotra S.D. Sharma

ADVERTISING MANAGEMENT-

Rajeev Batra John Mayer

Information booklet of various books of Trade Magazines.

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