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Primarily thanking ALLAH Almighty for giving us such a bright opportunity to learn and polish our extravagant abilities.
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.
DIVISIONS:
Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions:
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:
Australia, Bangladesh, Brunei, China, Guam, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Sri Lanka, Taiwan and Thailand.
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
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.
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.
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 .
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
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
Limitation of Segmentation:
Because of segmentation, Levis faces some limitations. Lack of awareness in middle class. Company has to pay extra cost for multi-advertisement. In Pakistan they have to face several Cultural Barriers.
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.
Marketing mix
Product Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns
Place Channels Coverage Assortments Locations Inventory Transport Promotion Sales promotion Advertising Sales force Public relations Direct marketing
Target market
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.
LEVIS
Invented 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 Khakisquickly 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. line offers fashionable tops, dress and casual pants and range of accessories designed to fit a variety of different body types and sizes. Today, the Dockers has expanded to more than 50 countries in every of the world with a complete assortment of stylish and innovative products including a full line of tops, footwear, outerwear and accessories for a broad of consumers The a full brand region range
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 of LS&CO.S products
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.
COTTON PANTS
ACCESSORIES BELTS
SUNGLASSES
WALLETS
LADYS BAGS
JACKETS
SHOES
Business Casual shoes and Casual shoes are offered by Dockers both for men and for women
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 riveted clothing.
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.
BCG Matrix
CATEGORIES
Based on its evaluation, the LS & CO.s businesses are placed in the following:.
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 Levis Company (Singapore). There is no discount to offer. the
Credit Sales:
We also deal with credit sales, but we dont overcharges 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 employees of the Levis. Our prices are fixed. to the
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) GAAP 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.
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 wh Raja Sahib, Link road olesalers. Retailers: HKB: Defence, Liberty Market , Mall Market
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. 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.
LAHORE OUTLETS : 1. FAISALABAD OUTLETS: ISLAMABAD OUTLETS:KARACHI OUTLETS:MULTAN OUTLETS:PESHAWAR OUTLETS:RAWALPINDI OUTLETS:SIALKOT OUTLETS:-
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.
LS & CO. Keep in mind the price and quality of the products and try to make its products better.
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:
Promotion objectives:
o o o o o o To inform, persuade and remind the potential customers about its products Increase awareness and build primary demand To build strong brand equity. Build Companys image as innovator. To create and Levi people. To create the 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 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.
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.
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 Origina
Advertising mediums:The advertising media used by the company are Television Fashion Magazines , Newspapers
Internet.:Levis provides up-to-date information to their customers through electronic media i.e. from their websit
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.
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.
ISSUES:
These principles are applied to two interrelated issues:
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 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 "Community Involvement Teams" or CITs. worldwide. volunteer effort called There are now 78 CITs
Funding:-
STRATEGIES:
The Foundation's efforts to accomplish this goal are guided by two key strategies: (1) Providing eligible participants with a financial safety net. (2) Enhancing economic self-sufficiency via financial literacy and asset-building programs. The foundation received national attention for programs in both of these areas when it was featured in a 2004 National Public Radio broadcast regarding innovative services for hourly wage earners.
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"
Tools used by Levi Srauss & Co. for measuring Customer Satisfaction:
We use different tools for measuring the customer satisfaction e.g. We conduct different surveys just to know the views of our consumers. We have a very quick complaint system We ask our consumers for new ideas and their needs
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 etc..
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 a large 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.
CONCLUSIONS RECOMMENDATIONS:
CONCLUSION:
AND
Along with the collection of above data , we also did a personal survey from the customers of Levis. and meet their demands as they want.