Posted at 11.01.2018
Even though Levi's brand image is quite strong, it cannot sustain its brand image any longer as a result of neglected fashion movements. Levi has to come up with new strategies to rise above its competitors that contain released new fashion movements and good deal products to the clothing market. Its main competitors including Lee, Wrangler, Pepe Jeans, Spykar have also formed its quite strong and rigid brand images in the market by making their products at medium to low cost and keep on to gain obvious value in the industry. The clothing industry is currently a very founded industry with several challengers. The competitors is wearing offer virtually identical products, also they have got the same services that Levi can produce.
Therefore, it is very important to have a product differentiation that will be the added advantage to be able to improve the recognized value of the new product.
Levi Strauss & Co. is a multinational corporation divided into three major geographic divisions: Levi Strauss Americas (LSA), The LSA is situated in the SAN FRANCISCO BAY AREA and has its head office at this locations itself; Levi Strauss Europe(LSE), Which functions over Europe, Midsection East and Africa (LSEMA), the LSEMA is situated in Brussels, Asia Pacific Department (APD), which is located in Singapore The business employs about 10, 500 people worldwide, including about 1, 000 people at its head office at San Francisco, California. Levi's has and advances a few brands. Levi's, the main brand, was founded in San Francisco, California in 1873, which is experience in riveted denim jeans, neighborhood fashion and numerous lines of informal. Since early on 1960s through the mid 1970s, Levi Strauss experienced incredible upsurge in its business as the casual look of the 1960s and 1970s ushered in the "blue jeans craze". and offered as a medium for the brand. Levi's, under the way of Paul Glasco, Peter Haas Sr. , George P. Simpkins Sr. , and Jay Walter Haas Sr. increased the business's clothing lines by presenting new styles and models
The company attemptedto sell the Dockers department in 2004 to alleviate part of the company's $2 billion spectacular debt. In the year 2003, levies has launched a fresh brand called Levi Strauss Personal, features Jeanswear and casualwear. In November 2007, the business launched a mobile phone in co-operation with ModeLabs. Lots of the phone's cosmetic characteristics are subject to enhance and change based on the preference of the client at the idea of purchase. Levi Strauss & Co presently makes jeans in roughly 108 sizes and 20 surface finish materials. With 2007 net sales of $4. 1 billion, the business is focused on building after strong legacy and brand collateral as they position the business for future development.
Levi's: Since their creation in 1873, Levi's jeans have grown to be one of the most flourishing and broadly accepted brands in the annals of the clothing industry.
The Dockers brand is pioneered the progress toward business informal and has led the U. S. Khaki category in 1986, and is currently offered in a number of countries.
Levi Strauss launches new brand Levi Strauss Signature in 2003. The launch of the Levi Strauss Signature brand, supplying value consumers high-quality and classy clothing from a company on which the consumers trust.
PEST Research- Political/Legal factors
Distribution channels may need adaptation with regards to the development of local market. The entire range of retailing patterns employed for advanced markets can't be deployed in poorer ones.
Socio-cultural contains religion, words, ethnics, customers perceptions and ideals. Levi's desires to minimise the amount to which culture stops them from producing standardised promotional promotions. In addition to the effect on the look of adverts, social differences have linguistic implication with regard to the merchandise name. The brand of product is a key component of its advertising but care has to be exercised to avoid leading to offence in translation or using symbols that do not have the same relevance worldwide.
Technological factors pertains whether the local market has enough developed technologies to use full good thing about the product. The use of good technologies are crucial to use the various of promotional methods such as television or Web sites. Similar the use of high technology is vital for syndication of the product. For instance, whether consumers can utilise online home shopping facilities. In less developed countries, for example in Africa, where such solutions are in alternatively inchoate stage, version is required such that a greater magnitude of use is constructed of more traditional methods.
Levi's brand image is its biggest strength. With all the competition in the garments industry, Levi's differentiates itself from its competition by the capability to brand products through strong brand image. Corresponding to company's website Levi's market its products under leading brands.
Levi's has numerous retail locations. The company has 67 company managed stores in 10 countries surrounding the world. Also Levi's distributes its products in various retail formats which includes franchise stores, area of expertise stores, mass channel retailer and company possessed stores.
One of Levi's critical weaknesses is that Levi Strauss encounters is relying very seriously on few customers. The business in fact count on several important customers for a big percentage of its sales. The Net sales to its ten greatest customers is totally about 43 % of total sales. Hence, Levi's must make a change in relationship with their customers.
Many opportunities have come to the picture with Levi's continuous growth. The business has been increasing licensing programs to place frontward more products that complement its key brand product ranges. Hence, Levi's can produce more profit through licensing associations.
Moreover, Levi's plans to improve dedicated retail stores for value-conscious consumers in Asia.
Even though Levi's has cherished many opportunities and great growth through out the business's history, the company must alert of the possible threats
One the most significant hazard that Levi's facing is the ongoing decrease in the production on cotton internationally, as a result of which the price of cotton has increased. This increase in cotton price brought on a decrease in production in the year 2009. The Denim is manufactured completely out of cotton, therefore increased prices of cotton triggered a higher raw materials cost thus lowered the business margins.
Market segmentation refers to selecting groups of individuals who'll be typically receptive to a product. The very common ways of segmentation comprise Demographic qualities such as sex, age, income contest, status, occupation, contest and geographic location; psychographic factors such as life-style, hobbies, thoughts and opinions and activities; product benefits and product use patterns.
Much segmentation includes combinations of these methods. No matter how sections are described, however, they can be characterized by significant change over time. The readings in this section exemplify areas of quick change.
Basis of Market Segmentation
Demographic segmentation: years, gender, education, profession, income, and ethnicity
Geographical segmentation: region, weather, population density, and population development rate
Psychographic segmentation: attitude and lifestyle
Behavioural segmentation: usage rate and habits, price, brand and benefits sought
I am bringing out new product in Levi's, this might be a complete reversible jeans and which would be called as "The Two times". It's a one pair of jeans with two looks. Genius
One side of this reversible jean is light wash, for a far more informal looks, and the other part of the jeans is of dark shade with denim finish, which may be for the night time on the location centre, And the other part? You do not even need to go home to improve.
With double the client will be provided by two different looks in almost the same price.
The over night trip bag just got a lot easier. Just carry one toothbrush, two shirts/tops, ONE PAIR of jeans that function as Twin, two jeans.
Night or day, more or less formal Two jeans are always your best option.
This new jeans will keep up with the comfort and the modern design and are meant to be used by both men and women. The Twin is a 2 in 1 product which is incredibly comfortable and fit.
The target segment for double is the Behavioural segment. The reason for this is the fact it will increase the usage rate of the customer also the customer can take the advantage of two jeans from one jean only, while visiting he/she doesn't need to transport much products. The Double will Levi's Denims focuses on its market by assessing the desires of customers.
Target market technique for The Double would be to have long-term relations with their customers also to provide them with better product. Levi's offers customer oriented way by segmentation. Company is promoting its products effectively within sections by print media as well as electronic mass media, e. g. Newspapers, Signboards, Television advertisements, Internet, etc. Company is providing their customers with stylish better quality and various product keeping because its cost
The Increase would face some limits, for example lack of awareness in middle class, company must pay extra for multi-advertisement, and in some countries Levi's has to face many cultural barriers.
1. Product: The merchandise refers to the set of tangible and intangible capabilities which might include presentation, quality, color, quality and brand, also the business's services and reputation. A product may be considered a place, service, good or advertising.
In respect for the Double - reversible jeans, this will be a new product launched in the market. Which would be absolutely new inventions by Levi's in terms of the trousers usage. These trousers would be made up from an extremely high quality fibre. These trousers would contain duel color, light at one aspect and dark at the other, hence one trousers would provide at Two. The Twin would be offered in verity of sizes like 30, 32, 34, 38, 38 ins so that every customer can get the couple of jeans of its size.
The Impact of the Increase would be huge on Levi's. The Increase would supply the upper side on the marketplace when compared with its other rival like Space, Diesel, Lee etc.
The Brand is a name, term, signal, icon or design that adds value to the merchandise. Levi's & CO. earns impressive revenues over summer and winter because its products are believed to be the world's largest quality products.
The Double and other products of Levi's are comfortable enough to be worn even at the changing times of protest, battle, cultural revolution, comparative peace and natural fun.
The two information on the patch of Levi's trousers with whips in hand pulling in opposing directions, yet the jeans continue to be intact. The Twin will symbolize the durability and sturdiness of the Patent riveted clothing as Levi's
The Levi's clothing means more than simply textile, rivets and thread. To clothe oneself methods to put on something that symbolizes who you are. The Twin jeans are available in different styles for women and men.
While determining the purchase price company not considered the challengers, however the standard that can be used is considered.
Levi's price is influenced by the next factors:
- Cost of the product
- Affordable for the prospective market
- Demand of the product
- Uniqueness and progressive top features of the product
Initially Levi's will arranged the price tag on The Twin jean to be little greater than its other common selling products. Which can be justifiable as this is a fresh technology and company has spent lot of money in R&D, in addition The Increase would serve as not only 1 jean but as two denims, which would firmly justify its high price.
- To balance the demand and supply of The Double by any means places.
- To supply Twin at right place at right time.
- To increase the brand value by reaching every spot of the world.
- To fulfil the requirement of every area in line with the needs and taste of people.
Levi's distributes Skinny jeans by its channel users that is through sellers and wholesalers
Strategy for choosing the channels
Based on its product, Levi's chooses its channels. More often than not Levis is limited to his wholesalers, because the unit value is high and cost related issues occurs.
As mentioned before the Levi's make of products are sold in 49 countries, Dockers brand in 31 countries and Levi Strauss Personal brand in 4 countries.
Levi's will attempt to thrust its new Product "The Double" to roughly all its current selling counties, which is simply to gain the upper advantage over its challengers.
Levi's will place The Two times according to following strategies:
Placing according to Class and Attributes
The company will position The Two times according to different classes and genders.
2. Placing according to Competitors
With The Twin, the company will not be heaving much of competition using its competitors as this a fresh product and can give Levi's the competitive edge to its competitors
3. Placing corresponding to Price and Quality
Levi's has tried to build its image as an innovator by discovering services and Denims having new and latest style and look.
- To inform and remind the actual customers about its existing and new products
- To build strong brand value
- To Increase understanding and build demand
- To construct Levi's image as innovator
- To create connection between people and Levi by helping the people
- To build the importance of its products
For the sales promotion Levi Strauss & Co. use a very effective but extensive strategy. Levi's pays off attention to the promotion of its products. The major source of campaign of Levi's is done by creating pr. The sales advertising of Levi's targets the finish consumers.
Personal offering: Personal selling by the agent of the organization takes place in person with last consumers. Which means one of the way to promote The Double will maintain the store itself in person.
Advertisement: Levi's employs advertising to market company's image by saying many Duplicate the Red Tabs, hence no person can copy the initial.
New Advertisement campaign will be launched for The Increase, making the finish customer aware of the new product features and its launch.
The various advertising marketing utilized by the Levi's are
Fashion Mags, Newspapers
Bill boards, banners etc
Levis does indeed mass selling to inform a bulk of persons by advertising.
- Sales force
Levi's has an extremely large sales section which is employed in a variety of countries, hence The Increase can be marketed to different countries using its existing sales makes.
To promote its new product, The Increase, levi's will also sponsor some events.
Levi's, with its new product, The Double will initially aim for the youngsters as potential customers. As per their needs, the children would like to have very different verity of clothes in their cubed, The Two times - reversible jeans will fulfil their this need to fullest, by regularly providing different colors of the skinny jeans also giving spatial offers time to time. Levi's can concentrate on this portion easily by their doing advertising activities on TV, universities, city centres etc
Levi's, as a brand, is a well known and respected brand by hundreds of thousands, all the services that Levi's launches goes through a regress screening, so the end user gets a product which last long.
Levi's very proudly says that its products completely satisfy its customer's needs; hence Levi's doe not face much competition in their business.
But heaving said that, there are a few competitors in the market such as
Clear Communication to the customer is very important as to notify what different offerings to the clients are. Various settings of communication can be used for The Two times for communication its customer. These modes of communication will be Tv set, internet, newspapers, personally, sponsoring events, promotions. Nowadays the mouth area to oral cavity communication is also an essential setting of communication.
Levi Strauss & Co is a multinational organization which happens to be makes jeans in approximately 108 sizes and 20 finish materials. With 2007 net sales of $4. 1 billion, the company is focused on building upon strong legacy and brand equity as they position the business for future development. With Top three brands, Levi's, Dockers, and Levi Strauss Signature Levi's is one of the leading apparel company on which the clients trust.
This project is directed to launch a fresh product of Levi's, which is called "The Double" - Revisable denim jeans. It is a one pair of skinny jeans with two looks. One part of the reversible jean is light rinse, for a far more informal looks, and the other part of the skinny jeans is of dark colour with denim surface finish. With double the customer will be made available from two different looks in almost the same price. This new skinny jeans will maintain the comfort and the modern design and are designed to be used by both men and women. The Two times is a 2 in 1 product which is incredibly comfortable and fit.
Initially Levi's will set the price tag on The Two times jean to be little higher than its other common advertising products. Which can be justifiable as this is a fresh creativity and company has spent lot of cash in R&D. Levi's has an extremely large sales office which is employed in various countries, hence The Double can be promoted to different countries which consists of existing sales causes.
Hence, The Impact of the Double would be huge on Levi's. The Double would give the upper side on the marketplace as compared to its other competition like GAP, Diesel, Lee etc.