A Minor Project Report ON: "Brand Promotional Strategies of Levi'S Jeans"
A Minor Project Report ON: "Brand Promotional Strategies of Levi'S Jeans"
A Minor Project Report ON: "Brand Promotional Strategies of Levi'S Jeans"
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Table Of Content
1. Acknowledgment 3
2. Declaration 4
3. Exclusive Summary 5
4. Chapter-1: Introduction 6 – 16
: About the industry
: About the company profile
5. Chapter-2: Literature Review 17 – 30
8. Chapter-6: Conclusion 42 – 44
9. Bibliography 45
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ACKNOWLEDGEMENT
Enrollment.no. 02551401721
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DECLARATION
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EXECUTIVE SUMMARY
The project was done to obtain the current level of satisfaction of Levi's jeans users. So also,
what are their preferences or n buying jeans? Both coupled yielded reasons for current level of
satisfaction and means to increase it. There was insufficient secondary data due to which primary
data was collected.
The project was conducted within the geographical region of Opulent mall, Ghaziabad.
With a sample size of 200 customer. The data collected was analysed with the help of statistical
tools like frequency charts like bar and pie were used to analyse the data. The findings analysed
and based on the analysis conclusions were drawn and requisite recommendations were
provided.
These included:
1) Concentrating more on advertising
2) Increasing availability through local outlets
3) Reaching the economy segment etc.
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CHAPTER 1
INTRODUCTION
INTRODUCTION:
Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions: Levi
Strauss Americas (LSA), based in the San Francisco headquarters; Levi Strauss Europe, Middle
East and Africa (LSEMA), based in Brussels; and Asia Pacific Division (APD), based in
Singapore. Approximately 10500 people across the globe work in the company. The core Levi's
was founded in 1873 in San Francisco, specializing in riveted denim jeans and different lines of
casual and street fashion.
Denim Jeans, cotton apparel originally designed for the working class, has fascinated the poor
and the rich alike, and has even survived the changing fashion trends of the youth for over a
century. Today, the word jeans stand for a necessary fashion garment to be owned by every class
and section of the society. But the history of jeans hasn't always been so classy. In fact jeans had
originated as a garment for the working class.
Jeans as a fabric originated in the city of Genoa, Italy in the form of cotton corduroy. During the
Republic of Genoa, the jeans as a raw material were exported by sailors of Genoa to various
parts of Europe. But it was not until the late 18th century did jeans arrive in the United Stated.
The creator of jeans as a garment is a young Jew named Levi Strauss, who had emigrated from
Germany to America in the year 1851. Searching for a sturdy material to make pants for miners,
did Strauss come across jeans. Later, a tailor named Davis added copper rivets to jeans pants to
strengthen their weak points. Davis and Strauss then obtained the US patent to manufacture
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riveted jeans. Jeans as garments were originally made for the working class such as cowboys
which in the course of time became famous among teenagers.
Levi’s India was launched in 1995. Since then it has come a long way to make its presence felt in
the Indian industry. They have adapted and changed their market strategy to suit the highly
competitive Indian market. They have also changed their strategy for denim and non-denim
wears. Their primary cause of success is their market strategy of different price bands for
different categories and segments of jeans. Levi’s is seeking to strengthen their value brand
value- Signature, priced between Rs 599-999 in small towns and upto 1399 in cities. For
premium segments, Levi’s has a price range of Rs 2000-4000, for super premium Rs 4000-6000
and for Connoisseur Rs 6000-12000. This lets the brand capture market for different economy
groups. Levi’s also has an effective distribution strategy with over 5000.
Long regarded as the iconic American denim company, Levi Strauss is excelling in the apparel
industry because of these 5 crucial reasons. It’s no easy feat to drive both revenue and profit
margins, especially a 264% boost in profit in just one year.
With global revenues of over $4.7 billion in 2012, it's safe to say Levi Strauss is back to doing
things well. The company has been the staple of American denim both in the US and around the
world since its founding in 1873. Profits are now up over 264% for quarter two of 2013 to $48.2
million.
Levi Strauss has managed to do much more than just stay relevant within the apparel industry
since the inception of denim jeans. The company is focusing on the development and innovation
within it's core brands of Levi's and Dockers. Despite fierce competition within the denim market
and heavy debt loads to support both family leveraged buyouts and the company's strategic
objectives, Levi's is once again heading down the path to success.
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There are several reasons why Levi's was able to achieve such impressive results, which include
both internal and external factors. Here's 5 lessons you can learn from Levi Strauss & their CEO,
Chip Bergh to help differentiate your brand.
1. Forward-thinking Strategy
Levi Strauss has dedicated themselves to focusing on driving product innovation for the Levi's
and Dockers brands. It's important to have a very fine-tuned, focused strategy with measurable
goals. These plans include continuing to invest heavily in building the company's brand names,
improving the customer-experience in retail locations, and building out more direct-to-consumer
sales channels. This strategy is responsible for the company's increased sales in company-owned
stores and phase-out of the Denizen brand in Asia.
Over the past year, cotton prices have been at an elevated level which has been tightening
margins for apparel brands across the board. Prices for the raw material are going down once
again amid expectations of higher supply, and the company's boost in profit margins is certainly
aided by this.
3. Innovative Marketing
Levi's is doing an incredible job of employing unique marketing campaigns and staying very
edgy through use of beautiful images, taglines that invoke a sense of adventure, clever video
engagement, and more. Most notably, the company has employed a highly visual marketing
campaign across all digital media outlets including websites, social media platforms, online
advertisements, and television ads. The Levi's "Go Forth" campaign features stunning photos of
individuals embarking on adventures with taglines the likes of "Let the average man be devine,"
and "Strike out for the new world."
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4. Elevated Social Media Engagement
With a strong Facebook, Instagram, and Twitter following, Levi's is leveraging the power of
social media to turn fans into customers and bring them into their sphere of influence. The
company frequently advertises online deals & specials that are unique to their social following
which allows them to efficiently track their ROI on social media. By engaging their customers
and creating unique benefits that incentivize them to follow on social media platforms, they are
building a powerful brand that will appreciate in value over time.
Levi's began implementing many key innovative changes to their business model such as the
focus on the profitable core business, expanding much more selectively beyond the core moving
forward, and setting sights on becoming a world class retailer. These significant changes reflect
the company's renewed spirit of ingenuity and are now beginning to show positive results for the
brand.
Levi's will remain a contender in the apparel industry for years to come, but only time will tell.
History of Levi’s
Levi Strauss & Co., the world's largest brand-name apparel manufacturer, gave the world blue
jeans and grew enormously rich on this piece of U.S. culture. Indeed, around the world the name
of the company's founder has grown to be synonymous with the pants he invented: Levi's. Levi
Strauss markets apparel in more than 60 countries and it has 53 production facilities and 32
customer service centers in 49 countries. The company operates wholly owned businesses in
most European countries, in South Africa, Australia, Japan, Hong Kong, India, The Philippines,
Malaysia, New Zealand, South Korea, Taiwan, Brazil and Argentina, and operates through joint
ventures and licensing agreements in a host of other countries. Besides its well-known Levi's
brand products, the company markets clothing and accessories under the brand names Dockers,
Britannia, and Slates.
Early History
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Levi Strauss, born in Bavaria in 1829, immigrated to the United States with his family in 1847, at
the age of 18. In New York, he was met by his two half-brothers, who had already established a
dry-goods business. A year later, he was dispatched to Kentucky to live with relatives and walk
the countryside peddling his brothers' goods.
While Levi Strauss was still traveling about the hills of the South, his older sister's husband,
David Stern, established a dry-goods store in San Francisco, California, in the wake of the 1849
California gold rush, San Francisco at the time was a booming frontier town, and the
opportunity was ripe for a well-run business to flourish. Strauss and Stern set up their small store
near the waterfront, where they could easily receive shipments of goods from the Strauss
brothers back east.
Jeans, which would become the staple of the family business, were invented when Levi Strauss,
noting the need for rugged pants for miners, had a tailor sew pants from some sturdy brown
canvas he had brought with him on his journey. Once the supply of canvas was exhausted,
Strauss turned to a thick fabric made in the French town of Nimes, known as serge de Nimes,
which would be shortened to denim. The denim pants, dyed with indigo to make them blue, sold
quickly, and the business of Levi Strauss & Co. expanded rapidly, moving three times to new
and expanded quarters in the next 13 years. In 1866 the company moved to a luxurious new
location on Battery Street, only to have the building cracked from roof to foundation in an
earthquake two years later.
In 1872 the proprietors of Levi Strauss & Co. received a letter from Jacob Davis, a tailor in
Nevada, offering them a half interest in the patent on a technique he had invented for
strengthening the seams of pants by fastening them with rivets. In return, they would pay the cost
of obtaining the patent. The cost was negligible, and Strauss and his brother-in-law quickly took
the tailor up on his offer. The following year, the company was granted a patent on the use of
rivets to secure pocket seams, and also on the double-arc stitching found on the back pockets of
its pants.
At first, the company had the pants sewn by tailors working individually at home, in the same
way that the Strauss brothers in New York manufactured goods. Soon, however, the demand for
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the new pants became too great, the depression that had struck California in 1873, and the
company collected its switchers under one roof, in a small factory on Fremont Street, which was
managed by Davis, the tailor from Nevada. Such remarkable success brought envious
competitors, and Levi Strauss & Co. filed its first lawsuit for patent infringement against two
other makers of riveted clothing in January 1874. On the second day of that month, the founder
of the San Francisco concern, David Stern, died. About two years later, Strauss's two oldest
nephews, Jacob and Louis Stern, entered the firm with their uncle.
In 1877, in a climate of dire economic conditions, mobs attacked San Francisco's Chinatown,
sacking and burning shops and homes in a three-day riot. White men, unable to find work, took
out their frustrations on the Chinese, who had been willing to work for lower wages. In the wake
of this event, Levi Strauss & Co. solidified its policy of courting its customers' goodwill by
relying exclusively on white women as seamstresses. Because this entailed paying higher wages,
the company had to charge higher prices for its products, and thus find ways to deliver higher-
quality goods.
In 1877 the Levi Strauss & Co. factory expanded, and the notable features of Levi's pants--the
dark blue denim, the rivets, the stitching, and the guarantee of quality--became further
standardized. By 1879 the pants were selling for $1.46, and they had become widely worn in the
rough-and-tumble mines and ranches of the West. The firm also continued to sell other dry
goods, chalking up sales of $2.4 million in 1880, and it prospered throughout the 1880s.
What is a Brand
A brand is the set of values, ideals, strengths and weaknesses that become tied to your business.
A brand carries with it the power to inspire and influence your customers; it creates a set of
subconscious associations in their minds and sets you herd.
3.Their Promise
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It's amazing how much advertising promotion we absorb every day. Logos, slogans and
associated advertising methods (particularly background music) stick like mud. "The car in front
is a (?)"..."I'm loving it"... "Think different"... "Welcome to our Network"....
You need to think big. You need to think out of the box. You need to dispel any notions of what
is 'usual' or 'expected.' You need to grab your audience and you need to keep them until they are
fully aware that you exist and that you mean business.
Look to your business mission statement and ask what it is that you want to promote. Of course
you need to sell your product, you need to make money, but you also need to survive, and in
order to do that you need to form an impression on your market. Don't copy your competitors, be
original instead - look to companies that inspire you for inspiration.
Word of mouth is by far the most effective form of advertising. People ignore Pop-up windows,
but they'll listen to their best friend. If you provide a quality service people will recommend you.
Customers want quality. If you can provide quality at a decent price they will come back,
inspiring customer loyalty is part of a strong brand identity. You may want to hire a professional
to help shape your business model, or to improve your advertising scheme.
Brands
The products of Levi Strauss & Co. are sold under three brands:-
1. Levi’s : Since their invention in 1873, Levi’s jeans have become one of the most
successful and widely recognised brands in the history of the apparel industry.
2. Dockers : Dockers brand, which pioneered the movement toward business casual, has
led the U.S. Khaki category since the brand’s 1986 launch, and now is available in
numerous countries.
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3. Levi Strauss Signature : In 2003 the launch of the Levi strauss Signature brand, giving
value consumers high quality and fashionable clothing from a company from which the
customer trust.
Marketing Mix
Levi's, the main brand, was founded in 1873 in San Francisco, specializing in riveted denim
jeans and different lines of casual and street fashion. From the early 1960s through the mid-
1970s, Levi Strauss experienced explosive growth in its business as the more casual look of the
1960s and 1970s ushered in the "blue jeans craze" and served as a catalyst for the brand. Levi's,
under the leadership of Jay Walter Haas Sr., Peter Haas Sr., Paul Glasco and George P. Simpkins
Sr., expanded the firm's clothing line by adding new fashions and models, including stone-
washed jeans through the acquisition of Great Western Garment Co. (GWG), a Canadian
clothing manufacturer. GWG was responsible for the introduction of the modern "stone
washing" technique, still in use by Levi Strauss.
The Dockers brand, launched in 1986 which is sold largely through department store chains,
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after shutting down of CWG helped the company grow through the mid 1990s, as denim sales
began to fade. Dockers were introduced into Europe in 1993. Levi Strauss attempted to sell the
Dockers division in 2004 to relieve part of the company's $2 billion outstanding debt. Launched
in 2003, Levi Strauss Signature featured Jeanswear and casual wear. In November 2007, Levi's
released a mobile phone in co-operation with Mode Labs. Many of the phone's cosmetic
attributes were customizable at the point of purchase. Some of the company’s competitors are
GAP Jeans
Pepe Jeans
Cambridge
Lee
The jeans of the Levi’s brand are authentic and original in terms of quality, color and designs.
The styling involved revolves around the current fashions and comfortable apparels. The best
quality materials are used so that the customer finds satisfaction in the products. The reason for
the success of Levi’s jeans is mainly the satisfied consumers.
It takes nearly thirty-three steps and undergoes complicated processes in the production of every
apparel. In order to make them durable the products have double stitched inner seams with five
different sized pockets. The label in leather is one of its distinctive features and the small red
colored tab is a mark of authentic Levi’s jeans. The jeans can be purchased in any size and color.
The jeans are divided further into sub brands like Levi’s Strauss Signature, Dockers and Levi’s.
The brand has redefined the concept of jeans to designer jeans. The Dockers leans towards
casual jeans especially in the Khaki category. The brand has also launched the feminine
interpretation of the apparel. This line consists of casual pants, tops and dresses.
The Levi’s-Strauss Signature assures latest fashion as well as very high qualitative product like
the denim jeans and jackets. They have a wide range of merchandises including the
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quintessential classics and premium collections. Besides jeans, the brand also deals in dress
pants, jeans-related pants, jackets and accessories like wallets, sunglasses, belts, ladies bags and
shoes. The products are available for men, women and children.
Place in the marketing mix
Levi’s is a global entity that is divided geographically into three divisions namely Levi-Strauss
America, Levi-Strauss Africa, Middle East and Europe, Levi’s-Strauss Asia-Pacific.
The company started its business from the city of San Francisco and then later moved to various
other parts like Australia, China, India, Japan, Singapore and Sri Lanka. In order to make its
product a household name the company realized that it must make its product visible and easily
accessible.
Therefore, the brand organized a well-controlled and systematized distribution channel. The first
part of the scheme was to establish a factory for the manufacturing of the goods. Later the goods
were sent to the company suppliers, wholesalers and the retailers. At last, it was dispatched to the
market where consumers could easily make their purchases. As the company is famous for its
apparels, its market strategy includes exclusive distribution policy. In order to cover a huge
market it decided to give its franchisee to dealers who were interested in becoming a part of this
outfit. Special warehouses have been hired for safekeeping of the stocks.
Its warehouses are established in every country where it has an outlet so that fast distribution can
take place. The company has upgraded all its distributive centers and increased the sales channel
because they wanted to move faster than their rivals did in this competitive market. At present
Levi’s Jeans can be purchased from any good retail outlet as well as from the various shopping
malls. Internet has become one of the major selling options for the company. It has an official
website where purchasing the product is an easy process as the consumers can go through the
various color and designs at their own convenience. The home delivery option through this
medium is also a bonus for the busy consumers.
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in the local atmosphere and because of various political and social influences. As Levi’s is an
established brand name, the company has kept the prices fixed for every region.
The company does not allow flexibility in its prices to maintain its image of exclusivity.
Therefore, the products are sold at the listed price that has already being fixed by the head office.
Their pricing policy is influenced not by the competitors but by various other factors like costing,
market affordability and demand for the product. The company does not compromise with the
quality or with the prices of its products because it is confident of its loyal consumers.
Levi’s has a comprehensive and effective strategy that includes the participation of major
celebrities. In India, it has roped in Priyanka Chopra, Deepika Padukone and Akshay Kumar as
its brand ambassadors. In Philippines, they have appointed six brand ambassadors of the product
including Maxine Magolona, Laulen Young, Shamcey Supsup and Venus Raj. Levi’s has been
using the method of competitive advertising to promote its products.
Now days the brand has been going for eye catching and innovative ideas that will leave an
impact and an everlasting impression on the customer. One such ad showed Akshay Kumar
opening his jeans partially in a promotional activity at the ramp. This controversial ad became an
instant hit while creating maximum visibility for the product.
CHAPTER-2
LITERATURE REVIEW
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2.1 Literature review
"The strategic marketing process, therefore implies deciding the marketing strategy based on a
set of objectives, target market segments, positioning and policies."
- By Bradley (1991)
"The process of planning and executing the conception, pricing, promotion and distribution of
ideas, goods and services to create exchanges that satisfy individual and organizational goals."
- ByBennet (1995)
“Promotional strategy creates pathways to a desirable future. The output form such marketing
strategy analysis and choice (or strategic marketing decision) is a marketing strategy statement”.
- By Sudharsa (1995)
“The term “Promotional strategy” reflects the company’s best opinion as to how it can most
profitably apply its skills and resources to the marketplace. It is inevitable broad in scope.
Promotional strategies are the means by which a company achieves its promotional objectives
and are usually concerned with the 4.
- By McDonald (1996)
The role of strategic promotional is to lead the firm towards attractive economic opportunities,
that is, opportunities that are adapted to its resources and know how and offer a potential for
growth and profitability”.
- By Lambin (1977)
“The selection of target markets, the marketing mix and the marketing expenditure levels”......
“The promotional strategy is the way in which the marketing function organises its activities to
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achieve a profitable growth in sales at a marketing mix level”. “ A marketing strategy may be
defined as a plan (usually long term) to achieve the organisation’s objectives as follows…”
a) By specifying what resources should be allocated to marketing.
b) By specifying how these resources should be used to take advantage of opportunities which
are expected to arise in the future.
“A promotional strategy would consist of the following:
a. Identifying markets and customers needs in those markets.
b. Planning products which will satisfy the needs of these markets.
c. Organising marketing resources , so as to match products with customers in the most efficient
and effective way possible, so as to maximise customer satisfaction and the organisations profits
or sales revenue. (or whatever its objectives are !) at the same time”.
- By Kotler (1997)
“The establishment of the goal or purpose of a strategic business unit and the means by which it
is to be achieved trough management of the marketing function".
- By Baker (1984)
Although marketing has basically an strategic conception of the selling activity, we use to
distinguish between strategic marketing and operational marketing, depending on long term or
short term objectives. Strategic marketing starts in thoughts about current situation of the
company and situational analysis and possible evolution of the markets and the environment,
with the goal of detecting opportunities which can establish objectives.
Promotion may be defined as the performance of business activities that direct flow of goods and
services through producer to consumers or users .
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Promotion is a process of planning, developing and implementing maneuvers to obtain a
competitive edge in your chosen niche. This process is necessary to outline and simplify a direct
map of the company’s objectives and how to achieve them. A company wanting to secure a
certain share of the market, should ensure they clearly identify their mission, survey the industry
situation, define specific objectives and develop, implement and evaluate a plan to guarantee
they can provide their customers with the products they need, when they need them. Of course,
the central objective of any company will be customer satisfaction so they may dominate the
market and become leaders in their industry and thus providing substantial business satisfaction.
In order to do that, three phases of marketing strategy must be perfected to create delight in their
customers and beat out the competition.
1. Planning Phase
The planning phase is the most important as it analyzes internal strengths and weaknesses,
external competition, changes in technology, industry culture shifts and provides an overall
picture of the state of the organization. This phase has four key components that will provide a
clear diagram of where your company is and what it is doing.
SWOT Analysis – Defines the strengths, weaknesses, opportunities and threats of your business
and reveal your company’s position in respect to the market. To maximizes strengths and
minimize weaknesses an organization must perform the following:
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Once this analysis is complete the results should be used as a basis for developing the company’s
marketing plan, which should be measurable and attainable.
Marketing program – Once the needs of the customers have been determined, and the
decisions have been made about which products will satisfy those needs, a marketing program or
mix must be developed. This marketing program is the how aspect of the planning phase, which
focuses on the 4Ps and the budget needed for each element of the mix.
(a) Once the customer needs are understood, goals can be set to meet them, thus increasing the
chances of success with new products.
(b) Find points of difference: like your company’s unique selling point, each product should also
have a certain set of traits or characteristics that makes it superior to the competitive substitute.
For example, your product could be longer lasting, more accessible, more reliable or very user-
friendly so the buyers will choose it over the competition each time.
(c) Position the product: market so that in people’s minds your product is the “go to” for their
problem. Through emotional and mental marketing customers will associate your brand with
their solution and eliminate choice. For example, many mothers use “Pampers,” when referring
to diapers, as this brand has been positioned as the go to in baby diapering needs.
(d) Select target markets: based on the research and their commonalities, that way needs and
goals are both met.
II. Market-Product focus and Goal Setting – Once the questions of where the company stands
and what it wants to achieve are answered, the next step in the planning process is determining
where the resources will be allocated, and how to turn plans into focused action. To do this,
customers should be divided into segments to determine what specific marketing technique will
reach each targeted group and what each group needs. Next measurable goals should be set to get
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the needed products to the various groups, thus fulfilling the marketing objectives. For example,
if customers are divided into groups of common needs it’s easier to market them and provide
what they have proven to need at the time. And as well, if customers are grouped by their
common response to marketing, then the cooperation will know the right decisions to make to
reach that specific market segment.
(a) Price strategy: focuses on the list price, price allowances (reductions), discounts, payment
periods, and credit contracts.
(b) Place (Distribution) Strategy: the final ‘P’ in the marketing mix should focus on distribution
channels, outlets and transportation to get the product to the customer when they need it.
(c) Promotion Strategy: this element of the program should focus on direct marketing,
advertising, public relations and sales PROMOTIONS that create brand awareness.
(d) Product Strategy: this element focuses on the features, packaging, branding and warranty of
the product.
2. Implementation Phase
The implementation phase is the action portion of the process. If the firm cannot carry out the
plan that was determined in the early stages, then the hours spent planning were wasted.
However, if the planning was adequately and competently structured, then the program can be
put into effect through a sales forecast and a budget, using the following four components.
(a) Obtaining Resources – sums of cash to develop and market new products.
(b) Designing marketing organization – there should be put in place a marketing hierarchy to
properly see the plans to fruition.
(c) Developing planning schedules – time needs to be allocated to specific tasks so they can be
accomplished.
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(d) Executing the marketing plan – effectively executing the marketing plan will take attention
to detail, and focus on the strategy and tactics defined in your marketing plan.
The evaluation phase is the checking phase. This process involves ensuring that the results of the
program are in line with the goals set. The marketing team, especially the manager will need to
observe any deviations in the plan and quickly correct negative deviations to get back on course;
for example fluctuations of the dollar creates a lesser need for the product than in the past, then
the production of said product should be repurposed for a new more desired item. And they
should exploit the positive divergences as well, for example if sales are better than predicted for
certain products then there could be more resources allocated to greater production or
distribution of the same item.
A few ways to evaluate the effectiveness of your marketing strategy include paying attention to:
(a) Strategy versus tactic – strategy defines goals and tactic defines actions to achieve goals.
(b) Measurable versus vague – have milestones that define when you’ve achieved your goals.
(d) Marketing strategy should be backed by a business plan with tactical moves to accomplish
goals, or it is useless.
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2.2.3. GUIDELINES FOR EFFECTIVE PROMOTION PROCESS
A well thought out plan for offering value and solutions to your target market allows the
company to discover the needs of the targeted customers and fulfill those needs in a cost
effective and timely fashion. This in turn allows for the marketing team to be able to measure a
company’s value based on your ideal customer’s response to your product and strategy. Some
guidelines to ensure this strategy is effective are:
(a) Set measurable, achievable goals by ensuring they are clear, structured and measurable it will
be easier to accomplish your purpose.
(c) Use simple, clear and precise plans to detail what benefits you will offer your clients and
how. Customers are driven by needs and desires so a clear plan will target those to gain customer
loyalty.
(d) Have a feasible plan by using research to decide the best way to connect with and engage
your ideal customers and then implement a plan your company can afford and carry to
fulfillment to do so.
(e) Ensure control and flexibility by customizing your business plans and goals to match the
needs of the customers, as they determine the success or failure of your company.
While creating the perfect marketing plan for your company, there are certain issues that could
arise to deter the process. Here are a few possible issues to be prepared to face:
(a) Organizational Issues such as Poor Assumptions: – assuming customer needs without
validation, lack of skilled workforce to implement the plans once they are arrived at, loss of
0sight of customer needs during the planning phase and changing demographic of consumers.
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(b) Issues in the Marketing Department such as: inflexibility, performance assessment
problems, coordination problems, poor information management and human relations issues.
(c) General problems such as: trouble obtaining marketing feedback, issues related to cost of
marketing and problems integrating collected information into plans.
According to Business news daily, while industry related factors could affect a company’s
performance, outside factors can also play a major role in the outcome of a business’s plans. To
determine the role of the external factors, it is recommended that companies perform a PEST
analysis. Below is a break-down of what the four factors analyze.
(a) Political – this analyzes how legal issues and government regulations affect profit and
consumer behavior. The major considerations of the political aspect are tax guidelines, political
stability, trade regulations and embargos, employment laws and safety regulations. An example
of this analyse and how it works is looking at the effects of political instability in a foreign
market and how it affects your company’s plans.
(b) Economic – this factor looks at the outside economic issues that affect a firm’s success.
Companies should pay attention to economic growth, inflation rates, exchange, interest rates and
local business cycles. Changes in interest rate could improve or decrease the company’s bottom
line.
(c) Social – demographic and cultural aspects affect whether a company can compete in the
market or not. The social factor helps businesses to examine why customers purchase and what
exactly their needs are. Issues to consider include lifestyle changes, health consciousness,
environmental responsibility awareness, and attitudes toward work, education levels, population
growth rates and country demographics. A certain shift in educational requirements may result in
career changes that could reflect in changing needs of the customers.
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(d) Technical – this aspect considers how technology impacts product placement and marketing.
Technology can bring advantages and challenges that will increase or decrease production level.
Specific areas to consider are new technological advancements, the use of technology in
marketing, the role of the Internet and the impact of the information technology changes. The
introduction of the Internet has created an expectation of instant gratification in today’s
consumer; so social media marketing has to be considered an option.
According to Center for Simplified Strategic Planning, “Any strategic planning process involves
digesting information and some fairly difficult analysis. Good strategic planning should be
simplified, not simplistic.” And it should also answer the questions: what are we selling, to whom
and how do we beat the competition? The first two questions will determine the focus of your
overall business while the third will help you specify your strategies to market. The following
five steps are essential to accomplishing a simple, effective strategic plan.
(f) Evaluate and modify- measure how close or far you are from objectives, track what works
and change what doesn’t.
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A promotion strategy is made of several interrelated elements. The first and most important is
market selection. (Brown, A., Sommers, & E., 1982) which is directly related to choosing the
markets to be served. Product planning includes the specific products the company sells., the
makeup of the product line, and the design of individual offerings in the line. Another element is
the distribution system: the wholesale and retail channels through which the product moves to
the people who ultimately buy it and use it. The overall communications strategy, employs
advertising to tell potential customers about the product trough radio, television, direct mail, and
public print and personal selling to deploy a sales force to call on potential customers, urge them
to buy, and take orders. Finally , pricing, is an important element of any marketing program and
is one of the most directed marketing elements in the creation of value for shareholders ( Doyle,
2000). The company must set the product prices that different classes of customers will pay and
determine the margins or commissions to compensate agents, wholesalers, and retailers for
moving to product to ultimate users. We should also analyse the implications of the term,
Strategic Market Management. (Aaker et al., 2004)
(a) The “External, market orientation” it must be kept in mind since the companies are guided to
the market in a regular way. Reliable data in the strategic analysis has bigger possibilities of
success and bigger chances of optimizing their results.
(b) These strategies should be “proactives”, this is important for at least 2 reasons. First, one way
to be sure of detecting and quickly reacting to major environmental changes is to participate in
their creation. Second, such environmental changes can be so significant that it is important to
influence them when possible. (Aaker & A., 1998)
(c) Concern about input to the information system. An external orientation places demand on the
supporting information system. The determination of what information is needed, how it can be
obtained efficiently and effectively, and how it should best analyzed, processed, and stored can
be the key to making the strategy development process effective. (Aaker, 1998). With no doubt it
will be key the power to establish a good level of information for the company from a qualitative
and quantitative perspective. The management team should not fall in the problem of a lack of
data or on the other side the problem of “too many data”. The strategic decisions will require
excellent quality data, which is the one that the company need to ensure getting the goals and
contributes to reduce risk. It is necessary to mention that it can be equally bad a defect in the data
like an excess of data.
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(d) Online Analysis and Decision Making. There is also a trend away from using only the annual
planning cycle and toward more of a continuous “on-line” system of information gathering,
analysis and strategic decision making. The design of such systems is demanding and will
require new methods and concepts. Although it is important at conceptual level to understand
that a first step is “analysis”(Gilligan, Colin, Wilson, & S., 2003) and after the analysis the
manager makes decisions, in fact and in the strategic marketing practice the manager never stops
to analysing and deciding , it is a liquid process in which flows of information are
exchanged.
Marketing Strategy is a planning process that seeks to establish a clear direction and unified
purpose for all marketing efforts. Its conclusions are documented in a marketing plan that is
regularly updated. The five steps in strategic marketing are: identifying a mission; analyzing the
situation; setting objectives; developing a marketing strategy; and planning for evaluation.
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(a) Mission
The first step in strategic marketing is to articulate the reason why the enterprise exists and how
it can benefit target consumers over the long term. In particular, this mission statement is
intended to anticipate the future and describe an ongoing role for the organization's product,
service or expertise. For example, the mission of an airline might be to provide continuing
innovation in global transportation. A hospital could state a mission to take the lead in improving
public health and education.
(b) Situation Analysis
Organizations conduct a situation analysis, also known as a SWOT, to evaluate and prioritize
their strengths, weaknesses, opportunities and threats. This second step in the strategic marketing
process helps managers understand the resources they can build on and the challenges they face.
Strengths and weaknesses are internal factors, under the firm's control. For example, a good
image in the fashion press would be a key strength for a dress manufacturer, while a poor
relationship with clothing retailers would be a weakness. Opportunities and threats arise from the
external environment, like a strong economy or new payroll tax.
(c) Objectives
The third step in strategic marketing is to set marketing objectives. These are clear, measurable
goals that give decision makers a basis for making choices and assessing progress. Objectives are
typically expressed in terms of one or more quantitative targets like revenue, profit, sales or
market share. Importantly, each objective must be achievable within a fixed period of time. For
example, aiming for a five-percent increase in profits might be realistic within a year, but
probably not within one quarter.
(d) Strategy and Evaluation
The fourth step in strategic marketing is strategy development. This involves selecting a target
market, a distinct group of consumers who are highly likely to buy the firm's product. Planners
must also choose implementation tactics, specifically, effective ways to use the marketing mix
tools of product, promotion, price and distribution to reach and influence prospective buyers. The
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fifth step, evaluation, means specifying how, when and by whom these tactics are to be
monitored and assessed over time.
Factors like market share or sales volume n should be analysed , that is to say , every aspect
which can contribute to determine the level of of the company respecting customers and
competitors. It is also to take into account the following factors:
(a) The company’s mission, policies, objectives and resources. This shows the importance of the
values in the foundation of the company, reason why it will center bound aspects to products and
services as well as to marks and marketing strategies.(Abell, F., Hammond, & S., 1979; Mercer,
David, & team., 1998)
(b) Your competitors marketing strategies. We should not only “know our company” but also the
behavior of the “competitors' potential and the capacity to add and remove it in products,
segments, markets, distribution channels, etc.. From my point of view one of the clearest
indicators that a company thinks, and it acts with mentality of strategic marketing it is the level
of depth that makes of its competitors. " Victorious warriors win the battle first and then they go
fight… “ (Jason, Macdonald, Kent, &Neupert, 2005). To get knowledge about the purchasing
behaviours , motivations and perceptions of those who are the direct responsible of our products
it will also be key when making strategic decisions in marketing. They exist multitude of failures
in marketing and more concretely in the formulation and implementation of the strategy due to a
lack of data about the consumers (Faith Popcorn, 1992)
(c) The projected life cycle stage.
The implications of the product life are key when defining the marketing strategy since they try
to foresee (with a certain level of inaccuracy) which will be the evolution of the sales in the
future. Offering a “simile” with the biological cycle of life. This aspect is also related with the
visualization of future behaviors. One of the most interesting applications from my point of view
29
is the one of determining the best moment or good moment in which the company should enter
in the market keeping in mind the positions of the competitors, the level of uncertainty in the
environment, etc.. This is an interesting possible future field of investigation.
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CHAPTER 3
RESEARCH METHADOLOGY
SCOPE OF STUDY
The scope of this study is to analyse the various brand promotional strategies of Levi’s jeans and
to know that how these strategies attracts the buyers to buy more and more products of Levi’s.
Apart from this it focuses on the objective of the company. Through this analysis we can easily
came to know about the image of a company in a market and find its present position in the
market.
MEANING OF RESEARCH
RESEARCH METHODOLOGY
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which of these methods or techniques, are relevant and which are not, and what would they mean
and indicate and why. Researchers also need to understand the assumptions underlying various
techniques and they need to know the criteria by which they can decide that certain techniques
and procedures will be applicable to certain problems and others will not. All this means that it is
necessary for the researcher to design his methodology for his problem as the same may differ
from problem to problem. For example, an architect, who designs a building, has to consciously
evaluate the basis of his decisions, i.e., he has to evaluate why and on what basis he selects
particular size, number and location of doors, windows and ventilators, uses particular materials
and not others and the like. Similarly, in research the scientist has to expose the research
decisions to evaluation before they are implemented.
Research Objectives
The objective of our qualitative research is to find out what college students desire in jeans and
their attitude toward Levi’s and its competitors. The research will help us to determine in which
situations they wear jeans, the factors that drive them to purchase new jeans, and their digital
media usage patterns. Research will correctly identify the best type of spokesperson for Levi’s.
By analyzing these informational needs, Team Secta can determine the most appropriate way to
communicate with our target market.
Team Secta will conduct a focus group in order to gain a stronger understanding of the target
market’s perception of Levi’s brand image and how this compares to what they desire in jeans.
The findings from this research will allow us to identify themes that will help us make an
informed recommendation for Levi’s to effectively target this new segment.
By quantifying the results of our consumer’s responses, we can gain a proper ranking of what is
most important to consumers when they are purchasing jeans. Another topic that can be further
explored is the importance of the purchasing environment for consumers. In the qualitative
research we found customer dislike shopping for jeans. Quantitative research will better specify
the ideal shopping setting and what factors would improve their experience. Levi’s can use this
information to understand what they can do to provide their customers with a better purchasing
experience.
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Thirdly, we will find out who influences the consumer to buy a pair of jeans. Quantitative
research will find characteristics that consumers find appealing in a jeans spokesperson. In the
qualitative research certain factors, such as peer influence, were also brought up. Conducting
quantitative research will allow Team Secta to better understand this and other influences on the
target.
Levi’s can use this information to decide the most appropriate and ideal spokesperson that will
resonate with the target market. In addition, the target’s digital media usage patterns will be
surveyed so that Levi’s can gain an understanding in how to most effectively communicate with
the consumer. Lastly, quantitative research will specifically show current attitudes toward the
Levi’s brand. While qualitative research seemed to indicate a positive view of Levi’s, these
results cannot be generalized to the entire target population. Quantitative research, however, will
provide results and insights that can be applied to the whole target market.
Concepts of Interest
From the results of the qualitative research, Team Secta uncovered four meta-themes that we
used to create six concepts of interest. Gaining further understanding of these concepts of interest
will allow us to obtain the most accurate information so that it can be generalized to the entire
target market.
Usage of Jeans
As our focus group customer stated, there are many instances in which they find it appropriate to
wear jeans.
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Preferences Toward Jeans
In our focus group we found that there are many factors people look for in their jeans. The five
most important preferences we found are versatility, style, fit, brand name and price. Questions
in the survey will find out the most important preferences to the consumer, so Levi’s can utilize
this in their message.
Qualities of a Spokesperson
In our focus group, customer gave insight into what they were looking for in a jeans spokes
person and who influenced their style. Customer review generally sided toward a speaker who
was relatable and most similar to the demographic, not necessarily a famous celebrity. By
conducting a survey, we can generalize who the target market identifies as their biggest influence
and what qualities they seek in a spokesperson for Levi’s. By doing so, Levi’s can be confident
in choosing the correct person to carry the message of the brand to the target market.
TYPE OF RESEARCH
EXPLORATORY RESEARCH
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Exploratory research is a type of research conducted for a problem that has not been
clearly defined. Exploratory research helps determine the best research design, data
collection method and selection of subjects. It should draw definitive conclusions only
with extreme caution. Exploratory research often relies on secondary research such as
reviewing available literature and/or data, or qualitative approaches such as informal
discussions with consumers, employees, management or competitors, and more formal
approaches through in-depth interviews, focus groups, projective methods, case
studies or pilot studies. The Internet allows for research methods that are more interactive
in nature.
DESCRIPTIVE RESEARCH
Descriptive research includes surveys and fact finding enquiries of different kinds. The
major purpose of descriptive research is description of the state of affairs as it exists at
present. In social science and business research we quite often use the term Ex post facto
research for descriptive research studies. The main characteristic of this method is that
the researcher has no control over the variables; he can only report what has happened or
what is happening. Most ex post facto research projects used for descriptive studies in
which the researcher seeks to measure such items as, for example, frequency of shopping,
preferences of people, or similar data. Ex post facto studies also include attempts by
researchers to discover causes even when they cannot control the variables. The methods
of research utilized in descriptive research are survey methods of all kinds, including
comparative and correlational methods.
After completing secondary research, Team Secta conducted qualitative research to gain
consumer insights about their attitudes towards. Levi’s jeans and competing brands, their digital
media usage patterns, in which situations they wear jeans and the factors that drive them to
purchase jeans. Qualitative research is the next logical step because our secondary research
identified that Levi’s was not effectively targeting the 18-24 year old college student market. We
do not have any information on why the Levi’s message is not resonating with the target;
therefore, qualitative research will give us insights into consumer attitudes, beliefs, and
35
behaviors. Conducting qualitative research at this point in our study is more beneficial than
quantitative research because of its exploratory nature. It leads to background information that
our moderator will be able to use further probe to get more in-depth information. Qualitative
research will help us gain consumer insights so that we can understand their motivations and
answer our informational needs. Through qualitative research Team Secta can observe first-hand
the consumers’ verbal and nonverbal reactions to our questions. Information obtained from the
qualitative research will help us to develop future research and refine our problem definitions.
Qualitative research is quicker and less costly because of the smaller the sample size of eight to
12 people.
FINDINGS
Team Secta created a survey designed to address the concepts of interests on the target market,
including the purchasing and shopping experience, usage of jeans, preferences toward jeans,
attitudes toward Levi’s and competitors, qualities of a spokesperson, and digital media usage
patterns. We computed frequencies, proportions, and percentages for the nominal and ordinal
questions through Qualtrics. We chose some of the nominal and ordinal questions and conducted
cross tabulations to compare responses. We also computed mean, median, and mode for
the interval and ratio questions through Qualtrics. These are the most advanced statistics
possible for each of the types of question. It should be noted that the findings cannot be
generalized to the entire 18-24 year old target market because we could not recruit a random
sample for the Web survey.
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jeans. In support of the findings from our qualitative research, customer express that when they
go buy jeans it is the main focus of their shopping trip.
Usage of Jeans
We then asked customer about their jeans wearing habits. The largest percentage of target
market, at 44.09%, says that they wear jeans three to four times per week. 32.26% of target
market currently own between five and six pairs of jeans, and of these jeans, the top three brands
are American Eagle (26.15%), Levi’s (11.28%), and Lucky Brand Jeans (11.28%). These three
brands alone account for 48.71% of the target market.
In reference to consumers’ jean wearing habits, 32% of target market wear jeans to class and
31% target market wear jeans when they go out at night. These are the top two situations in
which the target market wears jeans. The average consumer also agrees that the jeans they wear
out at night are different than the jeans they wear during the day. Since students go to class
during the day and out at night, it can be inferred that they are wearing more than one pair of
jeans per day
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The average consumer has a neutral attitude toward wearing designer jeans. However, when
comparing this to the responses of the statement “if a pair of jeans looks good on me they do not
necessarily have to be the most comfortable”, those who agreed had a preference to
wear designer jeans, whereas those who disagreed with the statement had no preference based on
the recorded means.
Therefore, there is no statistical significance between preference to wear designer jeans and
preference to wear jeans that look good on the consumer in exchange for comfort. We can say
that there is a statistical difference between these two groups’ opinions. This is important to
Levi’s because those who disagree with the statement “if my jeans look good on me, they do not
necessarily have to be the most comfortable” do not prefer to wear designer jeans.
Qualities of a Spokesperson
Through the qualitative research, Team Secta uncovered that the customer’s style is not strongly
influenced by celebrities. In the survey, 73% of the customer feel their style is most influenced
by friends and 58% are influenced by other people who are like them. When cross a tabulated by
gender, there is little difference between males and females on this view point. This correlates
with the fact that out of the four spokesperson characteristics, “relatable” scored the highest.
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These results match the comments of our focus group members who stated that they were more
influenced by someone who was similar to themselves than by celebrities. However, when asked
which celebrities they identified themselves with, customer preferred Ryan Reynolds
and Meagan Fox who are considered physically attractive.
However, 82 out of the 89responses included Facebook as one of the Web sites they most
frequently visit. This contradicts their social media usage patterns, therefore, it should be noted
that customer may not fully understand the definition of social media. Watching television
ranked next followed by listening to the radio and reading newspapers/magazines, respectively.
The highest of the most frequently visited Web sites include Facebook, Google and Twitter.
Music Web sites such as Pandora, Groove shark and Frat Music, are also popularly mentioned in
the open-ended question. The most watched TV networks are MTV, Fox, ABC and ESPN.
Concerning newspapers, 57 out of the 89responses show that they read The Independent Florida
Alligator and 10 out of 89 responses how that they read the New York Times.
In this study,
Methods- the methods of the data collected used in this study are Secondary data-
Internet, Magazines and Newspapers.
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CHAPTER 4
Result:
By the help of analysis and interpretation of the data we came to some findings, these findings
are as follows:
First of all the Levi’s products are considered as the most durable product. Therefore that
area is secured. But the areas which Levi’s lacks are comfort ability and inexpensiveness.
If Levi’s lower down its prices to some extent the sales volume could be increased to a
very 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 Levi’s is well recognized. We saw in the survey results that most
people just to maintain their high status buy Levi’s products.
Levi’s pays its maximum attention to the men’s wear. Although the women section and
kid’s sections are present but they are not full filling the requirements much.
The kid’s section, which is just in start, should be given attention to attract more
customers.
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Suggestions:
From the above result and analysis, following recommendation could be drawn:
Levi’s should more aggressively tap the youth segment, which lies in the age group between 18-
25. The reason for the same is Levi’s was ranked first in terms of the overall brand image.
Hence, Levi’s has a scope to reach the top position and encase through increase in sales.
Since most of customers buy twice a year (i.e. every 6months) or occasionally, and they are not
affected by the promotions, Levi’s should aggressively advertise coupled with effective sales
promotions for improving customer recall and brand.
It was also found from the survey that color range is low. This also limits preference towards
Levi’s as a brand. This area should be properly looked after by making available hosts of colors.
After sales service which is becoming the most critical success factor seems to be not given due
importance. Proper after sales service can provide a competitive edge through efficient customer
relationship management.
Levi’s is perceived as premimum brand in India. Hence, and economy product range can also tap
the unexplored middle class range.
Since Levi’s jeans is majorly available in departmental stores and factory outlets, reaching the
customer and availing him with consumer schemes is difficult. India having a huge middle class
customer group still being not exploited can be reached through making Levi’s jeans available at
local retail outlets.
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CHAPTER- 5
CONCLUSION
Team Secta used secondary, qualitative, and quantitative research to determine the important
factors that Levi’s should take into consideration to better position their brand image to their
consumers. Secondary research revealed that premium jeans are considered the newest trend
in the market. Levi’s, however, delayed in pursuing this trend; therefore, the competition was
able to capture a greater market share. Research also revealed that the millennial generation,
ranging from 14 years old to 31 years old, will become the largest age group in the United States
by 2012.
This group will also define what is mainstream; therefore, Team Secta determined it would be
best for Levi’s to target 18-24 year old college students at the University of Florida because they
fit within this growing demographic and Levi’s is within the growing jeans industry. Qualitative
research was needed to find out how to best pursue this target market. After conducting
qualitative research through a focus group, we gained insight into the motivations and attitudes
of the target market. Seven major themes were uncovered: the desire for fit and versatility,
negative feelings towards shopping for jeans, opportunistic purchasing habits, peer influence,
Levi’s being traditional, and attitudes toward the “Go Forth” campaign.
From these themes, we created four broader meta-themes: ideal jeans purchase environment,
Levi’s image and peer influence. Though they liked the characteristics of premium jeans, such as
fit, quality, style, and cut, the focus group had negative perceptions of the word “premium”.
Instead, they thought it only referred to expensive, designer brand jeans. Additional information
needed to be gathered through quantitative research to refine these themes and to clarify the
remaining informational needs.
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A survey was conducted to provide statistically reliable data pertaining to the concepts of interest
that were developed from the meta-themes. Quantitative research showed that consumers did not
consider buying jeans a stressful experience. The top three brands the customer owned were
American Eagle, followed by a tie between Levi’s and Lucky Brand Jeans. Customer showed
that they wear jeans to class and out at night most often, but wear different styles of jeans in each
situation. We found that consumers preferred quality over low prices. Overall, fit is the most
important factor they consider when purchasing jeans.
One of the major factors that would deter consumers from repurchasing the same brand of jeans
is if the jeans shrank in the wash. Preference toward designer jeans depends on the willingness of
the customer to sacrifice comfort for style. Out of the top players that we identified in the jeans
industry, customer have the most positive attitudes toward Lucky Brand Jeans, American Eagle,
and Levi’s, respectively.
Customer think of Levi’s as a more traditional brand that carries mid-priced to inexpensive jeans.
It should be noted that being traditional was seen as a positive during our qualitative research.
The respondent’s style is most influenced by their friends and those who are similar to them as
opposed to celebrities. They also want a jeans spokesperson to be relatable.
Based on this analysis, Levi’s needs to implement an advertising strategy that will regain the
market share it has lost to its competitors. Levi’s advertising should avoid positioning itself as a
designer jean because the target does not prefer to wear designer jeans. Instead, the message in
the advertising should concentrate on the fact that the consumers will be able to find a pair
of jeans that offers them the perfect fit. While everyone has a different definition of what
constitutes a perfect fit, consumers will be able to find it through the many styles and cuts
of jeans that Levi’s offers.
Because the customer appreciate the fact that Levi’s is a traditional brand, advertising should not
ignore or omit this characteristic. Instead, Levi’s needs to embrace their roots, but relate them to
43
a contemporary setting. To supplement this message, Levi’s needs to choose the correct
spokesperson for their advertising.
Research indicated that friends and people they consider similar to themselves influence the
target over celebrities. Also, the target market feels it is most important, out of the four choices
given to them, for a jeans spokesperson to be relatable. Based on these conclusions, the
advertising should showcase ordinary people who are considered similar to the target market
group. In addition to utilizing traditional media,
Levi’s needs to increase their presence digitally. The target market spends the most time on the
Internet and nearly all of the customer stated Facebook as being their most frequently visited
Web site; therefore, Team Secta recommends that Levi’s use Facebook to complement their
campaign. Also, we strongly recommend that Levi’s increase their efforts on Twitter to reach
their consumer.
They will then be ready to surpass the competition and reestablish themselves as the leader in the
jeans industry. They will appeal to the target market through their new positioning, which is :“To
18-24 year old college students at the University of Florida who want a pair of jeans tailored
toward them, Levi’s offers the perfect fitting pair of jeans at the highest quality due to a wide
selection that appeals to your individualized style. Levi’s is a genuine, relatable, and iconic
brand.
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BIBILOGRAPHY
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. Web. 01 Mar. 2010. <http://www.eckounltd.com/>.“Gap, Inc. Overview.”
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. 25 Sept. 2009. Web. 24 Jan. 2010.Garfield, Bob. “Levi's Target Unlikely to ‘Go Forth’ and
Buy Its Jeans.”
Advertising Age
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