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The Company Microenvironment To Six Different Surroundings Marketing Essay

Content
  1. Rank
  2. 86
  3. 180
  4. 202
  1. 402
  2. 437
More...

Levi Strauss and Co. (LSandCO) is a favorite privately organised clothing company. It was founded in 1853 by Levi Strauss in USA. It is presently one of the world's largest brand-name garments marketers with sales in more than 110 countries including European countries, Japan, Taiwan while others. The company was organized into three geographic divisions: Levi Strauss Americas (LSA), located in the SAN FRANCISCO BAY AREA headquarters; Levi Strauss Europe, Midsection East and Africa (LSEMA), based in Brussels; and Asia Pacific Division (APD), located in Singapore. The business's apparel products can be purchased under the brand name of Levi's, Dockers and Levi Strauss Personal brands. Levi's, the primary brand, was founded in 1873 in San Francisco. It is focusing on riveted denim jeans and various lines of informal and street fashion. From 1960 -1970, Levi Strauss got experienced explosive expansion in its business as the "blue jeans craze" results explodes about the world. It helped the business to broaden its business to worldwide. This company was privately held by descendants of the category of Levi Strauss and they have employed a staff of approximately 10, 000 worldwide. It has four core prices within its business, which include empathy, originality, integrity and courage. Each value are associated which is the sources of the company's success.

It have establish four eye-sight maintain their success in market, they include: "We will market and send out the most appealing and greatly worn apparel brands", "People love our clothes and trust our company", "Our products determine quality, style and function", "We will clothe the world".

Levi's key school of thought "Adopt, Adapt, Invent - To Grow" induces teams to share their magnificent ideas, products and procedures over the company. They inlayed this idea in their brands and business which resulted increased speed to market, regularity and efficiency worldwide. With great products, we need to learn how to sell them to consumers. "Sell Where People Shop" is one of Levi's online marketing strategy, they invested in expanding its retailers and improving the option of their products. They curently have an online store which is quite convenience for consumers who wish to buy Levi's goods through internet. Even though they already have 1500 stores worldwide, they intend to continue widening and improving retail presence.

Executive Summary

The marketing plan for Levi's has been created to advise employees of the firm's current position and way. Levi's wants to include new product lines. After conducting SWOT evaluation on Levi's Strauss & Co, we think that Levi's has more probable that what it's displaying right now. Levi's is already working with others and kick off different products other than jeans itself. For instance, its new mobile phone. Levi's should produce more products with creative design with quality control to get the young years. In addition, Levi's would have invested or do research and involve in other sectors or produce new product. For example, clothing for pets.

Microenvironment

The company microenvironment has recognized to six different surroundings, which is:

The company

Supplier

Marketing intermediaries

Customers

Competitors

Publics

The internal environment of Levi's company included the company management, money, R&D, purchasing, operating, accounting. The company executive of Levi's has total 131 professionals in the United Status. The main professionals are CEO, Chief Financial Official and Exec Vice Leader, Senior Vice Chief executive and Leader of THE UNITED STATES Region, Senior Vice Leader and President of European Section, and Senior Vice Leader and President of Levi Strauss Asia Pacific.

Supplier is the company offering the resources to create goods and services. A new information management system happens to be being rolled-out to Levi's suppliers which, when completely operational, will allow the company to accumulate and observe energy use data from other suppliers, as well as optimize the data collection efforts. This technique will provide a more complete picture of Levi's source chain's environment change impact and identify opportunities for coverage change.

Marketing intermediaries included reseller, marketing services organizations. Resellers are the distribution channel businesses that help the company to find customers or make sales to them, including wholesalers and shop.

Levi's company has their wall plug in more than 110 countries in the worldwide, and customer may search for and purchase Levi's products online off their authorized retail lovers.

Levi's company will choose local advertising firm, it is because by using a local advertising organization makes this possible since they are more likely to have a strong understanding of the reasons that consumers are enthusiastic about products.

The rival of Levi's company, such as Calvin Klien has effectively taken the market from Levi's credited to heavy advertising and branding. A number of the marketing strategies that rivals used to identify their product and brand included:

Up--to--date Western european product designs, such as low--rise, tighter and advertise jeans as "designer. "

These advertisements were used as a hurdle to entrance, because of spurious product differentiation. Although Levi's jeans may be in physical form the same as its rival, consumer preferences are influenced by brand.

In addition to the idea of branding, Levi's largest consumer market segments were SENIORS, and by enough time rivals increased in the 1980s, Levi's brand was identified to be ""mommy jeans". This strengthened the younger belief of other brands.

The open public is any group that comes with an genuine or potential fascination with or impact on an organization potential to accomplish its objective, it included financial publics, multimedia publics, government publics, citizen-action publics, local publics, general publics and internal publics.

Financial publics impact the company's ability to obtain funds. Media publics hold news, features and editorial opinion. Government publics affect product security sand truth in advertising. Citizen-action publics include consumer organizations, environment groups, and minority groupings. Local publics include neighbourhood residents and community organization. General publics impact the company's public image. Internal publics include personnel, managers, volunteers, and director.

Marcoenvironment

Within the quickly changing global picture, the marketers of Levi's are monitoring the next six environment forces

Demographic environment

Economic environment

Political and sociable environment.

Cultural environment.

Natural environment

Technology environment

Demographic environment

Demographic environment is important to company because is the analysis of population in the term of sizes, density, location, age, gender and so forth. There are some Demographic developments such as age, family structure, geographic population switch, educational characteristics and populace diversity.

There are three changing get older structure of the populace which are seniors, generation x and generation y.

Baby boomers are people who is delivered between 1946 and 1964. Repersents 28% of the population; earn 50% of personal income. This technology will get into peak earning years as they mature. They play important role in buying the Levi jeans, the baby boomers had followed jeans as symbolic of their chance with the style and traditions of the parent's. However, the baby boomers were looking for different nonetheless they still wished clothing that was comfortable and created from natural, which Levis jean is manufactured out of 100% organic and natural cotton.

Generation x includes people created between 1965 and 1976. Levi Strauss has made a concerted effort to redefine its image and gain back lost market show. The company discontinued its sixty-seven-year romance with advertising firm Foote, Cone and Belding to create new promotional initiatives targeted at Generation X. The one-time uniform of younger looking rebellion, that was worn by James Dean in Rebel without a Cause and Marlon Brando in the Wild One, was now left behind by Gen x. For the kids Levi's were not "cool" anymore. They were replaced because of the Space, Inc.

Generation y includes people born between 1977 and 2000. This technology is internet technology. As Era Y choices have been powered by faddishness and rebellion. It really is hard for Levi allures the technology y to buy its jean. Having developed in an even more media-saturated, brand-conscious world than their parents, they react to advertising differently, and they prefer to come across those advertising in different places. The marketers that catch Generation Y's attention do this by bringing their emails to the places these kids congregate, be it the web, a snowboarding competition, or cable TV.

Economic environment

Economic environment contains factors that have an impact on consumer purchasing vitality and spending design both across and within the planet, markets.

Changing financial condition can have a large effect on even the most successful companies like Levi. With this recently financial downturn, many companies especially Levi sales has infected. People start to saving somewhat than shelling out for the Levi jeans. A big change in consumer spending routine has affected the client buying behavior relating to Ernst-Engel's law. When income goes up, the percentage allocated to food will decrease as well as reduce shelling out for Levi products.

Political and communal environment.

Marketing decision are strongly influenced by the developments in the political environment. This politics environment consists of laws, government agencies and pressure groups that influence various organization as well as individual in confirmed society.

In order to Protect Levi trademarks from unfair competition and other factors.

In Philippines, Levi and co. has recognized three specific priorities regarding protect Levi trademarks which are

Equal enforcement for many industries

improvement in the efficiency of the courts

Prevention of copycat registrations of globally famous trademarks.

More than two decades before, Levi was one of the primary companies to improve consciousness about HIV Helps. Thus, Levi has efficiently to attract new customer as a result of program.

Not only that, Levi has been working for the past two years with other attire brands, as well as non-governmental organizations, to avoid the practice of using child labor in harvesting cotton in Uzbekistan.

The ethnic environment

The ethnic environment is made up of corporations and other pushes that impact a society's basic value, perceptions, choice and behavior. People increase up in a particular society will figures their basic and prices differently.

The customer who believe that after wearing Levi jeans would make sure they are that looks more mature and as a symbol of their rest with the style and traditions of the parent's will encourage them to buy more of Levi brands.

Apart from that is people's view of dynamics. People varies in their frame of mind toward the natural world-some feel ruled because of it, others feel in harmony with it, and other looks for to master it. Customers who love natural and you will be heading to buy or seek for the Levi jean although they feel Levi jean has gone out of day compare to J. C. Penney & Co because in July 5, 2006, Levi has made released it'll include jeans made with 100% organic cotton. For customer who love natural will eventually seek out everything from natural, organic and so forth. This portion spends nearly $215 billion on a yearly basis on such product.

Natural environment

Natural environment involved that natural resources that are needed as source by marketers or that are afflicted by marketing activities. Levi knows several fads in the natural environment such as growing shortages of recycleables, increased air pollution, and increased federal invention in natural resources management. Embracing the lack of resources and to increase the environment, Levi Company appreciates that cotton farming requires significant amounts of normal water and pesticide so in July 5, 2006, Levi has made released it'll include jeans made out of 100% organic and natural cotton. Which has led Levi to create apparel made from recycled soda pop and blended organic cotton. Not just that, Levi's recent marketing campaign asked consumers to operate in their old jeans, that could then be recycled by Levi for its own commercial use. All exterior packaging will be produced from organic cloth or recycled paper and printed out with soy-based printer ink. By doing so it can help the triumph over the storages of raw material as well as decrease the pollution.

Technology environment

When old industries ignore to look at a fresh technology, their business will decline. Thus, Levi needs to watch the technical environment closely. For instance, making jean from using hand made and after a fresh technology has been used they commence to use machine. It becomes faster and effective. The technology environment is the most remarkable force now shaping Levi destiny. Levi has created a powerful project management tool that helped create significant visibility and profitability across the global IT corporation. Levi employs the electronic time frame interchange system to order and monitor stock levels with their customers such as major department stores to avoid costly stock out but in less developed country.

SWOT analysis

SWOT analysis is an important tactical planning tool that assists organizers in their planning jobs. SWOT means power, weaknesses, opportunities and dangers. The analysis provides a critical view of an organization internal and external environment.

Strength

Levi's has operated up to 136 many years of time, Levi's is the first to produce jeans in the world, with this originality, it has an upper side compare to other clothing companies. Levi's has 1500 stores worldwide which involves 1300 franchised shops and 200 company controlled stores. In year 2007, Levi's has total earnings of $4. 361 billion compare to $4. 193 billion in 12 months 2006. With total revenue increased, total credit debt decreased from $2. 217 billion to $1. 960 billion. This evidently implies that Levi's is fiscally strong. Presently, Levi's is standing at 86 in Fortune 500. It is also the very best company in textile industry.

Rank

Company

State

Industry

Revenue ($bil)

Employees

86

Levi Strauss & Co

CA

Textile - Clothes Clothing

4. 36

11, 550

180

WL Gore & Associates

DE

Textile - Attire Clothing

2. 40 e

8, 500

202

Milliken & Co

SC

Textile - Apparel Clothing

2. 27 e

10, 000

402

Williamson-Dickie Manufacturing

TX

Textile - Garments Clothing

1. 15 e

4, 160

437

Kellwood

MO

Textile - Clothing Clothing

1. 00 1

25, 000

Weakness

According several research especially younger generation, it is stated that Levi's design is not up to date and creative even though the quality of the jeans are much better than the other products. Levi's design can be imitate easily by its competition especially skinny jeans' pocket design. Even though Levi's originated denim jeans but it is losing its position as leading jeans brand as there's a whole lot new companies which are capable to produce trousers that match them in terms of quality and design. Hence, this will no doubt affect the full total revenue. The next is an example Levi's design being copied.

Opportunities

Levi's is doing quite well financially; it is buying other sectors such as mobile industry. Levi's is working with ModeLabs and launched several cell phones in November 2007. Internet is participating in a essential role in today business; Levi's has recently create an online store for consumers to buy their products through internet. With this competitive advantages, Levi's total earnings increase.

Threats

With the current credit crunch, many nowadays don't wish to spend more on top quality goods. Consumers tend to look for cheaper products than Levi's products, smaller demands searching for Levi's jeans will end result surplus which will hit Levi's terribly. In addition, there exists pirated version of Levi's products which consumers can enter a much cheaper price. These pirated products look equally compare to Levi's original product; consumers are willing to buy the pirated version. Last but not least, Levi's is facing a stiff competition from its competitors which are well known worldwide such as Tough, Pull & Carry and Espirit.

Findings

SWOT analysis shows that Levi's has a major market talk about and it has a strong financial background. It really is still the number one company in its industry. However, Levi's is facing several imitation problems which became more serious in recent years. That is will without doubt affect its earnings. Nevertheless, Levi's is dealing with ModeLabs and launched a new product which is a mobile phone. This shows Levi's still has a lot more to offer in other market sectors. Despite the fact that Levi's trousers are original and good in quality however the designs remained unchanged and it seems boring to the young generations. Its rivals like Tough, Move & Keep and Espirit will capitalize on this weakness and gain an edge on Levi's.

Segmentation

As mentioned previously, one of Levi's marketing strategy "Sell Where People Shop". This involves segmentation. Four bases for segmenting consumer market segments which are geographic segmentation, demographic segmentation, psychographic segmentation and product-related segmentation.

"Sell where people shop", Levi's has launched and exposed a great deal of outlets in new area which catches a whole lot attention. For instance, they prefer to open up a branch in a city alternatively than rural area. That is anticipated to total people and purchasing electric power in a city is much bigger than rural area, this eventually will cause them to gain bigger market talk about. This is exactly what marketers call geographic segmentation.

Demographic segmentation also known as socioeconomic segmentation; Levi's has turn out with various products that happen to be segmented by different characteristics. For example, they have release Levi's Curves for ladies, its products is within form-flattering jeans. Furthermore, Levi's concentrate more on people. Their target market is more for the adults as they have greater purchasing electricity.

For psychographic segmentation, it relates categories in the population who've similar mental characteristics, values and lifestyles. The reason why Levi's marketplace is on big populace area because people in big locations prefer top quality products because it shows higher position of them. Since Levi's is a very famous brand, consumers want to purchase and use their products.

Product-related segmentation, department of a society into homogenous groups predicated on their marriage to the merchandise. Levi's segment their products regarding what customers need; every consumer has their own choice in purchasing Levi's products. For those who favor formal clothing, they will purchase Dockers'.

Recommendations

We have come up a marketing plan that Levi's must have approach way back when. After a few lessons of discussions, we've come to a final result that Levi's should get into household pets' wear market. If Levi's step into this market, exactly what will be the power, weaknesses, opportunities and threats. Proudly presenting our new product: LeviPets.

SWOT analysis

Strength

No hesitation Levi's is a well known brand in the population, if Levi's enters dogs and cats' wear market, it'll be the first branded product for dogs and cats. Nowadays, new technology is willing to get nice clothing because of their pets especially cats and dogs. With this new product LeviPets popping out in the market, men and women will purchase these new clothing because of their beloved household pets as they want the best for his or her pets.

Weaknesses

All along, Levi's products are for real human usage. They haven't tried before in producing clothing for household pets, perhaps they haven't purchased the correct method and technology to create it. This learning from your errors require time and cost before Levi's can create a good product for pets before they can start it in the market.

Opportunities

Based on the BCG Matrix model, we come to a conclusion that LeviPets is in the Question Make quadrant. It really is a new business, though it is dangerous, it might become a shining star in dogs and cats' wear industry. When this happen, Levi's will gain more on income and be a head in dogs and cats' wear market.

Threats

LeviPets will face several competitors in this market as there are several companies who are doing quite nicely in this market. LeviPets is a new entrant in the market and it'll definitely go through a competitive period contending with the other companies.

Marketing Strategy

Segmentation:

Our marketplace is younger generation who possesses a dog or cat; they enjoy designing their most dogs or cats and then displaying them to their family members and friends. In so doing, they need to spend enough money on purchasing goods to put on their house animals so they would look great in it. Besides that, we also focus on couples or married couples who do not plan to have children. They favor to have a family pet in their life plus they treat their dog or cat as part of family, so they are prepared to devote to the dogs.

Promotion:

In order to make people aware of this product as fast as possible, the best way is to put the products in an advertisement which display one old item and LeviPets. For example, a model is using Levi's Curves is walking a puppy which is using the new launched product LeviPets. This will no doubt pull attention from the public.

Product:

To produce LeviPets, we use the same technology alongside the new acquired strategy and formula. This may ensure the quality of LeviPets works with with existing Levi's products. In doing so, quality is manipulated.

Place:

We remain using the same idea which is "Sell Where People Shop"; we will place our products in house animals look for example Safari World in IKADO. We will also set up a low profile company or whatever we fundamentally know as web store. With this, we will obtain more market share.

Price:

First we set the purchase price as par as the other existing products so that consumers will give it a go. In economic smart, if the new product gets a good respond from the general public. We assume that price elasticity of demand of LeviPets is inelastic where quantity demanded for it will not react much if we raise the price. That is the time where LeviPets will be shining star on the market.

We have done a SWOT evaluation on Levi's.

Using the SWOT evaluation, we have come out with a new marketing plan which contains a fresh product and new SWOT analysis.

In conclusion, we have done overall research on Levi's.

In conclusion, we've a detailed knowledge regarding Levi's company by performing a SWOT examination and also examined what is Levi's marketing strategy. In doing this, we downloaded an twelve-monthly statement of Levi's. There we review the company's background and its operation. Then, we came out with this own marketing plan using the earlier SWOT analysis. The marketing carries a new product which Levi's should turn out with. Throughout this job, we become familiar with how to use 4Ps to write out a marketing plan even though the marketing plan is not actually complete. We also learn how to figure things out together.

Conclusion

Levi Strauss & Company experienced most of its early on success because the organization was behaving monopolistically. The company patented the riveted trousers, increasing sturdiness, and gaining popularity. Over time, the company taken care of profits by giving an array of products, acquiring new marketplaces, and increasing its market stocks. The company created obstacles to entry by patents and trademarks, and by differentiating its product from generic skinny jeans. However as more companies entered the marketplace, the company began getting rid of customers and incurring losses. The upstart companies captured niche market stocks from Levi Levi's huge market domination. Despite these reductions of sales, Levi Strauss & Co. taken care of its corporate sensible image and progressive stance on social, labour, and environmental issues, which may have long long-run income opportunities.

For this project we have done a research on Levi Strauss & Co. (LS&CO). We have learned a Levi's key viewpoint "Adopt, Adapt, Invent - To Grow" induces teams to talk about their magnificent ideas, products and methods across the company.

We learned about various research methods, for example, environment, SWOT and segmentation. Environment evaluation includes the micro and macro environment of the business, for SWOT, how exactly we could exploit the strength and opportunities, and additional improve on the weaknesses and overcome hazards. It is within an ultra-competitive environment; therefore need to utilize SWOT analysis to aid in building the marketing strategy.

In conclusion, the theories that we learn now can be apply in the true business community.

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