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Levi Strauss & Co was founded in 1869 by Leob Strauss. From 1960s through the mid 1970s, Levis experienced explosive growth in its business. With the onset of denim trend in India, it entered the market in 1994-95
Since then it has become an iconic and the most acknowledged brand in India.
VARIANTS OF LEVIS
Levis Dockers Levis Signature ---- > Denizen Red Loop
MARKET SHARE
MARKET SHARE BY RESEARCH AGENCY
Levis
Lee
22% 37%
Wrangler
14%
4% 8% 15%
Pepe
Tommy Hilfiger Others
Lee
28%
34%
2% 11% 6% 19%
GROWTH
Levi's Growth
12 10 8 6 4 2
6.1% 5.2% 4.2% 3.7% 3.8% 10.5%
Levi's Growth
5.7%
0
2005 2006 2007 2008 2009 2010 2011
BRAND PORTFOLIO
STP STRATEGY
Segmentation
Segmentation is the identification of subsets of buyers within a market that share similar needs and demonstrate similar buying behaviour. Basis for Market Segmentation: DEMOGRAPHIC-----GENDER and INCOME
Targeting
Target Marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments. 18-35 year old age group Super Premium and Premium Denim for the High-Income Customers Denizen launched targeting the Middle-Income group
Positioning
The firm positioned its products with changing times and changing demands, keeping existing customers and capturing new markets. Increases in sales ultimately increased profits.
SWOT ANALYSIS
STRENGTH: - Market share leadership WEAKNESS: -High cost of brand protection. - Lack of control over distribution decisions
OPPORTUNITIES: - Emerging markets - Expansion abroad - Technological development - Development in other industries - Total market for casual wear is growing - Diversify into related products. THREATS: - Competition - Economic downturns - Rising sales of substitute products. - Adverse government pressures.
Bargaining Power of Customers: - Large number of buyer - Many alternative brands available
LEVIS
Threat of Substitute Products: - Better quality and substitute - Price war - Cargo, legging for girls, bottom wear
COMPETITOR ANALYSIS
LEVIS
- Unarguably
WRANGLER
- Offers competition against Levi's - Has an unshakably "cowboy" vibe
- Rugged construction
- Very affordable
LEE
- Offers stiff competition against levis
- More geared towards the younger market - Decent value for the money - Not nearly as durable and rugged as Levi's and Wranglers
PEPE
-Dominate in women wear
MARKETING STRATEGY
Levis India is changing the marketing strategies for its Denims brands Lower income group and middle income group can now afford branded and premium apparel.
For premium jeans worth more than Rs. 4000 per denim, they introduced the scheme of payment through EMI.
Levis formed a supply chain partnership with Wal-Mart.
CUSTOMER ANALYSIS
70 60 50 40 30 20 10 0
PRIORITY 1 PRIORITY 2 PRIORITY 3
150 Individuals, majority of them under the age of 34 were considered for our survey in Delhi and Noida. The consumer favours the product on the basis of Comfort which act as the first priority for then consumer favours the Brand Name and Quality and last but not the least is the Price and Design
RETAILER/DISTRIBUTOR ANALYSIS
Demographic segmentation based on Gender and Age group with
60% male customers and largest customer base of 21-30 years.
Brand Personality was the prime awareness source for Levis customers.
Levis Strauss captured the market share by 70% among the Levis sub brands. Offers Customer benefits programs like membership cards. Uses Third Party and Franchisee type of distribution system.
Distributors work solely on the demand being generated by retailers. Denizen a cause of concern, not able to make its presence felt in customers mind.
RECOMMENDATIONS
Adopting a more aggressive marketing strategy Laying more emphasis on Women & kids apparel
Rendering of discounts and offers to customers so as to boost the sales and build brand loyalty Reduction in the price so as to cater to a different segment of customers
Kavisha Agarwal Kritika Ojha Madhumitha Aiyer Mayank Joshi Narvir Yadav Nikita Nahata Nisha Priyanka Chatterjee