1. INTRODUCTION
Levi Strauss & Co. (LS&CO.) is one of the world's largest brand-name apparel marketers with sales in more than 110 countries. There is no other company with a comparable global presence in the jeans and casual pants markets. Today, the Levi's® trademark is one of the most recognized in the world and is registered in more than 160 countries. The company is privately held by descendants of the family of Levi Strauss.Shares of company stock are not publicly traded. The company employs a staff of approximately 8,850 people worldwide, including approximately 1,000 people atits San Francisco, California headquarters. Levi Strauss & Co currently makes jeans in approximately 108 sizes and 20 finish fabrics. From the early 1960s through the mid 1970s, Levi Strauss experienced significant 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 Walter Haas Jr., Peter Haas, Ed Combs, and Mel Bacharach, expanded the firm's clothing line by adding new fashions and models, including stone-washed jeans through the acquisition ofGreat Western Garment Co.(GWG), a Canadian clothing manufacturer, and introducing Permanent Press trousers under the Sta-prest name.
The company experienced rapid expansion of its manufacturing capacity from 16 plants to more than 63 plants in the United States from 1964 to 1974 and 25 overseas. The use of "pay for performance" manufacturing at the sewing machine operator level up.
2004 saw a sharp decline of GWG in the face of global outsourcing, so the company was closed and the Edmonton manufacturing plant shut down. TheDockersbrand, launched in 1986 which is sold largely through department store chains, 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 features jeans wear 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 are customisable at the point of purchase.
2. 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.
Levi Strauss Signature™:
In 2003 the launch of the Levi Strauss Signature™ brand, giving value consumers high-quality and fashionable clothing from a company on which the consumers trust.
3. MARKETING MIX:
The marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in the targetmarket. 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 PRICE PROMOTION PLACE
Product variety List price Sales promotion Channels
Quality Discounts Advertisements Coverage
Design Allowances Sales Force Assortments
Features Payment period Public relations Locations
Brand name Credit terms Direct marketing Inventories
Packaging
Sizes
Services
Warranties
Returns
3.1 PRODUCT:
“Product means set of tangible and intangible attributes which may include packaging, colour, price, quality andbrand plus the seller’s 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 tobe the world’s largest quality products.
LS & CO. is basically divided into 3 sub brands i.e. Levi’s, Dockers and Levis Strauss Signature. All the three brands are providing different quality products.
LEVI’S®
Invented in 1873, Levi's® jeans are the original, authentic jeans. They are the most successful, widely recognizedandoftenimitatedclothingproductsinthehistoryofapparelLevi's®jeanshavecapturedtheattention, imagination and loyalty of generations of diverse individuals.As the inventor of the category, the Levi’s brand continues to define jeans wear with widest range of products available from quintessential classics,such as the famous Levi's®501® Original jean to favourite fits and styles in our Red Tab™ and Levi's® Premium collections.
DOCKERS®
Launched in 1986 in the United States, Dockers® brand products andmarketing played a major role in the creation of a new apparel categoryformen'spantsandtheshifttocasualclothingintheworkplace.Dockers® Khakis quickly became the No. 1 khaki pant brand in the UnitedStates.In 1988, the brand launched Dockers® for Women, afeminineinterpretationofDockers®brandapparel.Thelineoffersfashionabletops,dressandcasualpantsandafullrangeofaccessoriesdesignedtofitavarietyofdifferentbodytypesandsizes.Today,theDockers®brandhasexpandedtomorethan50countriesineveryregionoftheworldwithacompleteassortmentofstylishandinnovative products including full line of tops, foot wears, accessories, for a broad range of consumers.
LEVIS STRASS SIGNATURE:
The Levi Strauss Signature™ brand was launched in 2003 exclusively for consumers who shop in the mass channel. The brand gives value-conscious consumers access to high-quality, affordable and fashionable jeans wear from a company and name they trust. The Levi Strauss Signature™ brand includes a collection of denim and non-denim pants, shirts, skirts and jacketsfor men,women andchildrenall designed withthe high quality.
PRODUCT ATTRIBUTES
Products are usually considered to be the No.1 factor contributing towards building goodwill of a firm. A productshould be unique, durable, reliable, comfortable and economical. Following are some of the basic attributes ofLS & CO.’S products
· Variety
· Features
· Design
· Colour
· Size
VARIETY
Levi’s 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
Levi’s jeans have been present at nearly every pivotal moment in history and culture for the past 150 years.
Shirts
Cotton Pants
Accessories
· Belt
· Sunglasses
· Wallets
· Lady Bag
· Jacket
· Shoes
Features:
Features are competitive tools thatdifferentiate the company’s products from its competitor’s products. Following are some of themain and distinctive features of Levi’s products.
Comfort
Levi’s jeans and other products are comfortable enough tobe worn even at thetimes of protest, war, Cultural Revolution, relative peaceand purefun.
Durability
The two figures on the patch of Levi’s jeans with whips in hand pulling in opposite directions, yet the jeans remain intact symbolize the strength and durability of the ‘Patent rivetedclothing’.
Style
Clothing means more than just fabric, thread and rivets. To clothe oneself means to put onsomething that symbolizes who you are. Levi’sjeans are available in different styles for men and women.
3.2 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 forthe organization. The remaining 3p's are the variable cost for the organization. It costs to produce and design aproduct, it costs to distribute a product and costs to promote it.
List Price:
Their productsaresoldatlistedprice,whicharesettledbytheLevis Company (Singapore). There is no discount to offer.
Credit Sales:
They also deal with credit sales, but they don’toverchargestothecustomers,wepayitourselftothebank(3%).Products are only sold for cash or on credit cards
Discount:
Theydon’tgivethediscounttotheircustomers,eventothe employees of the Levis. Their prices are fixed.
Payment period & credit terms
PaymentPeriodCreditTermsaresettled by the company.
PriceDetermination:
During the determination of the price company not considered the competitors, but thestandard 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 productUniqueness and innovative features of the products.
Competitors:
We are much proud to say with surety thatour products completely satisfy our consumers, that’s why we don’t face much competition in our business. But yet there are some competitors e.g.
· Pepe Jeans
· Leeds (US Apparels)
· GAAP Jeans
· Cambridge
Their prices are not influenced by the competitors.
Such a stuff, design and fashion which don’t have the enough sales are recall back to the company.Again company issues this stuff to theirown outlets for sale at discount prices.
3.3 PLACE:
Placement objectives:-
· To equalize the demand and supply of products at all places.
· To provide desired products at proper place.
· To full fill the requirements of every locality according to the taste of the people.
· To increase the brandequity by reaching every corner of the world.
Channels
Strategy:
Levi’s 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:-
They sell our product in 110 countries,55000-plus retail locations and 1500 brand dedicated stores. Levi's® brand of products are sold in 49 countries, Dockers® brand in 31 countries andour Levi Strauss Signature™ brand in4 countries:
COUNTIRES:
These countries areAustralia,Bangladesh, Brunei, China, Guam,Hong Kong,India,Indonesia, Japan,Korea,Malaysia, NewZealand, Pakistan, the Philippines, Singapore, Sri Lanka, Taiwan , Thailand.Bahrain,Israel,Jordan,Kuwait,Oman,Qatar,SaudiArabia,UnitedArabEmiratesAngola,Botswana,Mozambique, Namibia , South Africa. Argentina, Belize, Bolivia, Brazil, Chile,Colombia, Costa Rica, Ecuador, ElSalvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguayand Venezuela.
STRATEGIES:
LS & CO. placed itsproducts according to following strategies. Placing accordingto Class and Attributes:
LS & CO.Positioned its products according to different classes andgenders.
Placing according to Competitors:
LS & CO.Keep in mind the price and quality of the products and try to make its products better.
Placing according to Price and Quality:
LS & CO. introduces best quality at different prices to its clients.
Placing according to Technology:
LS & CO. has tried to build its image as an innovator by coming in Pakistan with their Jeans having new and latest style and look.
D) PROMOTION:
Promotion objectives:
· To inform, persuadeand remind thepotential customers about its products
· Increase awareness and build primary demand
· To buildstrong brandequity.
· Build Company’s image asinnovator.
· To create bonds between public andLevi Strauss by helping the people.
Sales Promotions
Advertising:-
The types of advertising used by LEVIS are:
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 promotecompany’s image by sayingMany Copy the RedTab No One cancopy the Original
Advertising mediums:-
The advertising media used by the company are
· Television
· Fashion Magazines, Newspapers
· Internet.
· Bill boards ,banners etc
Television & Radio:
Advertisements of LeviStrauss &Co.are very innovative and eye-catching. Buyers are attracted towards theproduct. The advertisements are placed at the international level.
Fashion Magazines &Newspapers:
For fashion magazines and newspapers LS&Co. is a target due to its grand brand equity, it has become a benchmark for all the others to follow. The newspaper gives coverage to the social events in which LS &Co takespart with great interest. Whereas fashion magazines are always dealing with the gorgeous models working withLS& Co and the unique outfits of the models.
Internet :-
Levis provides up-to-date information to their customers through electronic media i.e. from their website
Billboards & banners:
Billboards and banners are also used for the advertisement purpose
Sales force:-
Levi’s holds a very big sales department as it isworking in many countries.
Level of Distribution Intensity:
Levi’s is using selective but intensive distribution level for the distribution of its products.
Sales Offices and Sales Branches:
Sales offices for Levis act as a display center for their Products from where the customers can get information about latest designs and up to date fashion introduced. While the actual sale of the products take place at the sales outlet of the company.
Public relations:-
The sales promotion of LEVIS also includessuch activities as eventsponsorship.Levi Strauss & Co. says ,
“Our corporate valuesenable our vision of the future and reflect the legacy of our founder, LeviStrauss, who devoted substantial time and resources to charitable andphilanthropic activities.”
GUIDING PRINCIPLES:
There are three guiding principles present behind the global giving programs:--The first is a belief in empowerment - the right of women and youth to identify their needs and to participate insolving problems that affect them. The second is a resolve to address social biases and their impact on youth and women whether due to racism,xenophobia, sexism, homophobia or HIV/AIDS status. The third is a commitment to work collaboratively with other funders and to encourage joint efforts by ourgrantees.
ISSUES:
These principles are applied to two interrelated issues:
Preventing the Spread of HIV/AIDS
In 1985 the Levi Strauss Foundation became the first U.S. corporate foundation to address this epidemic, and hassincecontributed more than$26 million toorganizations inmore than 40countries. TheFoundation andcompany-supported programs seek to prevent the spread of HIV/AIDS.
Increasing Economic Development and Education Opportunities
To alleviate poverty, individuals must have access to resources and possess the skills to acquire and managefinancial assets -- yet youth and women continue to struggle against social norms and financial institutions thatlimit this type of access and discourage education and training. Focusing specifically on indigent women andyouth (age 10 to 25)
For Example
1. Philanthropy includes a focus on strengthening workers' rights and ultimately improving working andliving conditions in communities where third-party contractors make LS&CO. products. The Levi Strauss Foundation provides innovative "sourcing" grants to local, regional or global non profit 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 forMinorities".
4. In 1991, LS &Co became the first worldwide company to establish a comprehensive ethical code ofconduct for manufacturing and finishing contractors working with the company.
5.In 2003, LS &Coreceived the Corporate Philanthropy Award for our leadership in giving andvolunteeringinSanFranciscoarea.
6. In 2000, LS &Coinaugurated Volunteer Day at San Francisco headquarters and has since expandedit beyond theUnited States and Canada toinclude sites throughout Latin America and Asia.In 2004, employees volunteered more than 50,000 hours to charitable organizations around the world andprovided $1 million in philanthropic support to local non profit groups