Executive Summary

Levi Strauss and Co. is a privately held company owned by the family of its founder, Levi Strauss.
The company was created about 130 years ago and currently is one of the leading apparel companies
in the world. The company produces and sells a range of men's, women's and children's jeans and
casual wear including cotton and cotton blend casual and dress casual pants, tops and seasonal pants
and shirts, denim jackets, accessories, and footwear. The company has four major brands Levis,
Dockers, Levi Strauss Signature and Denizen.
Even though Levis brand image is very strong, it cannot maintain its brand image anymore as a
result of missed fashion trends. Levi has to come up with new strategies to overcome its competitors
that have brought new fashion trends and low price products to the apparel industry. Its competitors
including Lee, Wrangler, Calvin Klein have also gained strong brand images by producing their
products at low cost and continue to gain perceived value in the industry. The apparel industry is
considered a mature industry with numerous competitors. The competitors offer similar products and
services that Levi can produce. Therefore, product differentiation will be the key issue in order to
increase the perceived value of the new product.
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 15,000 people worldwide, including approximately 1,000
people at its San Francisco, California headquarters. Levi Strauss & Co currently makes jeans in
approximately 108 sizes and 20 finish fabrics. With 2014 net sales of $4.75 billion, the company is
committed to building upon strong heritage and brand equity as they position the company for future
growth. There are more than 60000 retail store worldwide which includes 2800 franchised store and also
530 company-operated stores around the world.
The company is privately owned by the family of Levi Strauss.

BRANDS:

The products of Levi Strauss & Co are sold under four 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. Levi's range included
1. Tops, sweaters, jackets, and outerwear
2. Kids wear
3. Footwear and hosiery
4. Loungewear and sleepwear
5. Belts, bags and wallets
6. Eyewear
7. Luggage and home bedding products
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. Dockers were mainly
design to target men's and women's of age group 25 to 39. And with the laps of time he has introduced the
several ranges followed as
a. Dockers Premium
b. Dockers Recode
c. Extract Dockers

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. Levi Strauss signature became very
popular among middle class people.
Levi Strauss signature included a wide range of jeans wear.
dENiZEN
In the summer of 2011, the dENiZEN brand launched , providing great-fitting, great-looking, well-made
jeans exclusively to target shoppers in online stores. With premium fabrics and finishes and a variety of fits

for the entire family, the dENiZEN brand offers the quality craftsmanship and authentic style. dENiZEN
jeans are the perfect fit for todays active families, offering the perfect balance of style and value.

Organisation Background.

Background (Time line)

1853: Start selling dry goods.

1873: Get patented and began selling them.

1912: Design the denim playsuit for children.

1935: Sold first blue jeans for women.

1940s: government Issue a denim clothing of workers in defence industry.

1974: compamy had enormous growth of $1 billion.

1986: Dockers brand was launched

2003: signature brand was launched

2011: Denizen brand was launched

Market Environment
The market environment refers to factors and forces that affect a firm's ability to build and
maintain successful relationships with customers. It is divided into 2 parts:
1. Micro environment & 2. Macro environment

Microenvironment

The company microenvironment has distinguished to six different environments, which is:

The company

Supplier

Marketing intermediaries

Customers

Competitors

Publics

The internal environment of Levi's company included the company management, finance, R&D,
purchasing, operating, accounting. The company executive of Levi's has total 131 executives in
the United State. The main executives are Chief Executive Officer, Chief Financial Officer and
Executive Vice President, Senior Vice President and President of North America Region, Senior
Vice President and President of European Division, and Senior Vice President and President of
Levi Strauss Asia Pacific.

Supplier is the company that provide the resources to produce goods and services. A new
information management system is currently being installed to Levi's suppliers which, when fully
operational, will enable the company to collect and track data from their suppliers, as well as
optimize the data collection efforts. This system will provide a more complete picture of Levi's
supply chain's climate change impact and identify opportunities for policy change.

Marketing intermediaries included reseller, marketing services agencies. Resellers are the
distribution channel firms that help the company to find customers or make sales to them, which
included wholesalers and retailer.

Levi's company has their outlet in more than 110 countries in the worldwide, and customer may
browse for and purchase Levi's products online from their authorized retail partners.

Levi's company chooses local advertising agency, this is because using a local advertising agency
makes this possible to have a strong understanding of the reasons that consumers are interested in
products.
Being is one of the worlds largest brand-name apparel marketers; Levis have the following
competitors1. Calvin Klein
2. Wrangler.
3. Lee
4. GAP
The competitor of Levi's company, such as Calvin Klien has successfully taken the market from
Levi's due to heavy advertising and branding. Some of the marketing strategies that competitors
used to differentiate their product and brand included:

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

Although Levi's jeans may be physically the same as its competitor, consumer preferences are
affected by brand name.

The public is any group that has an actual or potential interest in or impact on an organization
ability to achieve its objective, it included financial publics, media publics, government publics,
citizen-action publics, local publics, general publics and internal publics.

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

Marcoenvironment

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

Demographic environment

Economic environment

Political and social environment.

Cultural environment.

Natural environment

Technology environment

Demographic environment

Demographic environment is important to company because is the study of human population in

the term of sizes, density, location, age, gender and so on. There are some Demographic trends
such as age, family structure, geographic population shift, educational characteristics and
population diversity.

There are three changing age structure of the population which are baby boomers, generation x
and generation y.

Baby boomers are people who is born between 1946 and 1964.This generation will enter peak
earning years as they mature. They play important role in buying the Levi jeans. However, the
baby boomers were looking for different but they still wanted clothing that was comfortable and
made from natural, which Levis jean is made from 100% organic cotton.

Generation x includes people born between 1965 and 1976.Levi Strauss has made a concerted
effort to redefine its image and regain lost market share. The company discontinued its sixtyseven-year relationship with advertising agency Foote, Cone and Belding to create new
advertising campaigns targeted at Generation X.

Generation y includes people born between 1977 and 2000 .This generation is internet generation.
As Generation Y choices have been driven by faddishness and rebellion. It is hard for Levi
attracts the generation y to buy its jean .Having grown up in an even more media-saturated,
brand-conscious world than their parents, they respond to advertising differently, and they prefer
to encounter those advertising in different places. The marketers that capture Generation Y's
attention do so by bringing their messages to the places these kids congregate, whether it's the
Internet, a snowboarding tournament, or cable TV.

Economic environment

Economic environment consists of factors that affect consumer purchasing power and spending
pattern both across and within the world, markets.

Changing economic condition can have a big impact on even the most successful companies like
Levi. In this recently economic downturn, many companies especially Levi sale has affected.
People start to saving rather than spending on the Levi jeans. A change in consumer spending
pattern has affected the customer buying behavior according to Ernst-Engel's law. When income
rises, the percentage spent on food will decline as well as reduce spending on Levi products.

Political and social environment.

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

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

In Philippines, Levi and co. has identified three specific priorities with respect to protect Levi
trademarks which are

Equal enforcement for all industries

improvement in the efficiency of the courts

Prevention of copycat registrations of globally famous trademarks.

More than two decades ago, Levi was among the first companies to raise awareness about HIV
AIDS.Thus, Levi has successfully to attract new customer because of the program.

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

The cultural environment

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

People varies in their attitude toward the natural world-some feel ruled by it, others feel in
harmony with it, and other seeks to master it. Customers who love natural and will be going to
buy or seek for the Levi jean although they feel Levi jean is out of date compare to competitors.
Levi has announced it will include jeans made with 100% organic cotton. For customer who love
natural will eventually seek out everything from natural, organic and so on .

Natural environment

Levi is aware of several trends in the natural environment such as growing shortages of raw
materials, increased pollution, and increased government invention in natural resources
management.Turning to the lack of resources and to improve the environment, Levi Company is
aware that cotton farming requires significant amounts of water and pesticide so Levi has made
announced it will include jeans made with 100% organic cotton. That has led Levi to produce
apparel made from recycled soda pop and blended organic cotton.All external packaging will be
made from organic fabric or recycled paper and printed with soy-based ink. By doing so it will
help the overcome the storages of raw material as well as decrease the pollution.

Technology environment

The technology environment is the most dramatic force now shaping Levi destiny. Levi has
created a powerful project management tool that helped establish significant visibility and
profitability across the global IT organization. Levi makes use of the electronic data interchange
system to order and monitor stock levels with their customers such as major department stores in
order to avoid costly stock out but in less developed country.

Marketing strategy
Levi Strauss & Co. is an international clothing company which studies what people wants and needs and
therefore selling and promoting their products in a very competitive textile sector, especially in jeans
market. Their marketing strategy has played a very significant role in the success of their products and
hence making it a very successful company. They have been a world leader in the jeans apparel market
for many years but they have also faced a continuous increase in competition along the way. They have
suffered a bit due to a lack of adaptation to customers' needs. In this report I will be analyzing the
marketing strategies followed by the Levi's. Different variables have been selected for an alternative
marketing mix. Through marketing research the company should vary depending on the country or
product that the company is addressing.
Its worldwide known that levis is really a successful company producing, reading people needs, selling,
distribution and its product promotion in a really competitive textile market, especially in the market of
jeans, for many years. Levi Strauss & Co is an international company

Marketing strategy is a functional level strategy which consists of

Creating value for target Customers (Segmentation , Targeting ,Differentiation, Positioning)

Marketing mix.(Product , Price ,Place , Promotion)

Segment: - The process of dividing or disintegrate the market into a number of sub-markets or segment is
known as Market Segmentation.
For example: market segmentation is the division of markets into similar group of customer, every one
reacting differently to communication, promotion pricing and other variable of the marketing mix.
Geographical location is the major factor in segmentation of levis market, as the customer are residing in
different areas.
Region and size: Levis is selling different clothing as per continent, country. For e.g. European, African,
Asian etc have segmentation according to the culture. In Europe the denim jeans are the most preferable
clothing for women's as compare to Asian. Availability of the store is depending upon the size of the area.
As we see that London have more outlets as compared to county's.
Population density: Levis stores are most common in the urban sector as compared to the rural sector.
Demographic segmentation:
Age: Levis segmented its product according to different age group
Levis created brands for women's, men's. And it also has variety for children's. Because of this the sales
increased dramatically during recent years.
Income: Income is major factor for segmentation.
Company have segments as per income group like the Levi's original is the premium brand of the
company and have expensive clothing range which is preferable for high income group and brand
conscious. And it has Levi's signature brand which is attracts and affordable to middle class income
group.

Psychographic Segmentation: This segmentation groups customer according to their life style and buying
Psychology. Levis offers product according to attitude, belifs and emotion of target market. The desire of
status, enhance appearance and more money are example of psychographic segmentation.
Behaviouralistic segmentation: levis had segmented market on basis of buyer behaviour . As different
customer group expect different benefits from the same product and therefore it directly reflect to the
behaviour of buying. For e.g. there are 2 types of buyer the regular and occasional buyer. Levis had
segment the market by keeping in mind the buyers need.
Market target
It is the process of pulling market as a whole and separating into manageable, disparate units based upon
demographics.
Target market is a business term means particular goods are marketed through market segmentation.
Target marketing is a key of success for small business.
Till 1960 the target of Levis was middle age group people but with he laps of time it has changed his
marketing target, now levis is promoting women's and children as well.
Levis market target strategies:
Single segment strategy- It is a concentrated strategy .Till 1960 Levis was having this strategy i.e. it was
targeting middle age group people.
Selective specialization: It is a multiple segment strategy knows as differentiated strategy. For example
Levis is now selling goods for all age group people in women, men etc.
Product specialization: It is important one must have specialization in one of his product. As levis have
specialization in blue jeans.
Full market coverage: In this firm attempt to serve entire market. Now it is seen that Levis has summer
and winter casuals. Also it has launched shoes and undergarments as well.
Therefore it is visualized as Levis capturing whole market.

Differentiation
To fight against rivals, company adopt following strategy:
1. Differentiation in terms of:
Quality
Design
2. Dual strategy:
The company has launched one of its low price product Levis Signature which range
From Rs.799 Rs.1599.which helps the company to cope up with low cost rivals
3. Know your customers

The cost leaders today generally miss out on one important aspect. They typically concentrate on
delivering a product of competitive quality at the lowest cost and pass on part of the savings to customers.
They are so obsessed with costs and pricing that cut up the customer value proposition.
Levis continuously make efforts to keep a track on his customers need and demand and their expectations
by taking their feedback.
4. Supplier and partner relationships drive low cost strategy
A common theme across the companies that base their strategy around low cost leadership is supplier
relationships. In other words they have sufficient control over in-bound supplies and logistics. Levis have
no of suppliers for supply of their material hence it facilitates on time delivery of material and cost
effectiveness.
5. EMI Schemes
Levis being a top most brand in apparel industry started selling its Apparel on EMI basis so that the
middle class people who wish to wear brand like Levis can afford to buy it easily.
6. Targeting Low segment
Levis has opened a low range brand called Levis Signature for the middle income people so that people
can buy brand like Levis at a low rate. It offers high satisfaction to the various people and delivers Value
For Money to them.
7. Annual Season Sales
Levis also conduct Sales Twice a year-Once after the summer season and another after the Winter Season
to offer a great deal of discount on various apparels and other stuff.
Hence all these schemes helps Levis to increase their Foot Falls in their various stores thereby increasing
their goodwill in the minds of the customers, but providing Products/Apparels at a competitive price and
helps in increasing market share by generating revenues.
Positioning: The position of levis is like branded product so its customer can forgive
its brand and hence had made a brand image in the mind of its customer because
the customer can trust the company as levis is first jeans maker so there should not
be any doubt about its product. The main aim of the company is to make the
position of the product trust worthy in the eye of the consumer.

What is marketing mix?

In marketing one of the most famous terms probably used is marketing mix. The element of marketing
mix is the components of marketing plan which consists of 4ps. It is known as four P's the elements of
marketing mix are product, price, place, promotion

As example: A cake mix. All cake contains milk, flour, sugar, and eggs. In the same way all businesses
contain mix of 4p's in relation to their marketing strategy is known market mix.
marketing mix
The 4p's are the parameters that the marketing manager can control, subject to the internal and external
related to marketing environment. To full fill customers need a business must develop products to satisfy
them, charge the right price, get the goods to the right place, and it must make the existence of the product
known through promotion..
Definition of marketing mix:
Putting the right product in the right place, at the right price, at the right time.
Strategy of Levi's in relation to marketing mix which consists of product, price, place and Promotion is
briefly described as below.
Product
The company design and markets jeans and jeans-related pants, dress pants and casual, jackets, and shirts
related accessories for men, women and children under Levi's(R), Dockers(R) and Levi Strauss
signature(R) brand.
The term product refers to tangible, physical products as well as services. Here are some examples of
the product decisions to be made:
1. Brand name
2. Functionality
3. Styling
4. Quality
5. Safety
6. Repairs and Support
7. Warranty http://www.netmba.com/marketing/mix/
Brand name: Levi Strauss as it is one the most popular and well known apparels makers of jeans, so it has
a valuable brand name in the market and its product are been recognised as original, authentic, definitive
and real.
Styling: Style & image are what characterize celebrities, actors, TV shows, music videos, advertising,
businesses, shops and people. Levi's products aim at doing at the same with knowledge, expertise and
experience of emerging trends fashion & looks. Levi's products basically aims at selected customers by
targeting them with proper aim. Levi's styling had made a niche in style market with proper Fashion
Styling & Image Design and market updating. Its style and casual market is today among the world's best
casual market in the world.
Quality: As being a branded company in clothing market Levi Strauss is very much conscious about its
quality of product. Because it's the quality which makes the product trust worthy to the customer.

Safety: It is a very important aspect in product because safety is really important as Levi's is very much
conscious in safety it uses the best quality jeans material which don't harm to it's consumer and preferable
to the body of consumer.
Repair and support: It is a service which is given by the company for satisfying its customer in relation to
the main product. It is really important because at once customer can not fully satisfied with the product
so it is a support for the customer if any wear or tear is their in the original product, for example: size,
length, etc. They might be change or repair. So with this service customer can buy the product without
any hesitation in their mind if they have any problem related with product after buying it that can be
easily solved by repairing and changing the product. In this competitive market where customer is king
this strategy is must for each and every company.
Warranty: This is also one of the important factors in relation to the product for the customer because
customer needs warranty in each and every step one cannot judge the product at once therefore customer
needs the surety for a time period about its basic function so that they can trust the company about
product service and quality because if one company don't gives warranty than the consumer fell's about
the quality of the product that its quality is inferior that's y only it won't gives the warranty.
Price
It is a important in marketing mix it shows the value of the product and it is consider as an important
aspect for the customer because customer wants full value of its money which he is spending to buy the
product the following are Some factors which are to be consider in tacking pricing decision of product are
as follow:

Pricing strategy (skim, penetration, etc.): levis as it is the branded company in jeans field and
have a brand image in its field the customer can forgive the company even though the price is not
worthy for the product because customer buys its product by watching the name of the company
as it is very trust worthy for the consumer

Retail price: the company's retail price is an important factor because it is the price which is to be
paid by the customer so it effect the thinking about the product as they are in direct touch of the
customer not the company

Price flexibility: As levis is an branded jeans apparel company there is no flexibility in the price
because it have a brand image in its consumers mind therefore levis have fix price of their
product.

Price discrimination: levis price varies from country to country because every country have
different social and political influence on the market so the company have to fix the price of the
product depending on the factors mention above there for its price discriminate.

Place
Distribution is about getting the products to the customer. Some examples of distribution decisions
include:

Distribution channels: The distribution channel of the company is consist of factory where the
product is made than it goes to the company suppliers who distribute to the whole seller and then
it goes to the retail shopkeeper than it goes to the consumer

Market coverage (inclusive, selective, or exclusive distribution): the company covers a wide or
exclusive market because its once of the well known company in jeans apparels so it covers a
huge market

Specific channel members: The company gives up the franchise to the people who needs it and
then they become the member of the channel and this is how the company becomes famous and
this is how the channel goes further

Warehousing: the company uses its warehouse for keeping the stock of its goods because clothes
are not made to order so there is need of stock for supply and for keeping that stock it needs
warehouse and as its world wide spread company it needs its warehouse in each country where
the products are available

Distribution centres': the behaviour of consumer attitude towards retail store have changed
dramatically in recent years, in order to increase the channel of sale to vendor, by watching this
behaviour the manager of Levi's Strauss as per need upgraded the distribution centres

Order processing: In this competitive market the order process should be very much fast and
should be forecasted as for which thing the shortage is going to happen that's why the order
process should be fast and the at the same time delivery.

Promotion Decisions
In the context of the marketing mix, promotion represents the various aspects of marketing
communication, that is, the communication of information about the product with the goal of generating a
positive customer response. Marketing communication decisions include:

Promotional strategy (push, pull, etc.): For any product of the company promotion is very much
necessary because this the only way to send the product to whole market and to promote its new
product to the market, promotion of any company is very much in such a competitive market

Advertising: Levis Strauss advertise its product by many ways by giving add on television and by
using the advertising holding and in newspaper and in magazine and such different means which
is related to the consumer or which goes through the customer day by day

Sales promotions: If the company want to increase the sales or any new product launched in the
market than company wants to improve its promotion by sales this is done in various ways by
giving discount on the product or by giving some offer in relation to the product

Public relations & publicity: This is also a kind of promotion because by maintain relation with
the public the company is indirectly promoting its product on the name of customer relation this
is a kind of publicity infect this promotion is benefit for both the consumer and the seller because
they can promote the product on the name of public relation and consumer is happy because they
are being cared by the company personally

Marketing communications budget: This is the budget which is being given to the marketing
manager of the company and he is to decide where he has to spend its budget. This budget is
related to the communication of product which is between company and the consumer because
before any thing the communication reaches to the customer and brings the him to the product so
this budget is really needful for the product and for sale also

Tactics
1. Going with the generation
2. Diversified
3. Always comes with something new to the market
Going with the generation: Levi's is always make new product and that is focus on young generation
because when company launch 501 so young generation too much like then in 2005 Levi's new product
Reversible jeans that jeans we wear both of side that jeans to much popular in young generation.
Diversified: Levi's make some different product so customer diverted on that because customer need
some new think and different so company focus on what type of jeans customer need that type of jeans
make and diverged to customer on it some type of different advertisement and hoarding launch in market
then customer see that and ready to buy. And only Levi's company make jeans by order. Some people
have problem in height, waste, Patten, etc. This facility launched in 1994 that name is personal pair
Always comes with something new to the market: First Levi's make only jeans and jeans-paint. Than
company make another brand that name Dockers that famous for formal wear and we first company
target high income group than company think about middle income group so they make Levi Strauss
signature.

Recommendations and Proposal's:

Introducing existing products in new markets.

Developing new products for existing markets.

Identifying & exploit growth segments.

Invest heavily in most attractive markets ( as Dockers)

If the company chooses differentiation with relative low costs is able to gain outstanding success

Levi's always make new product but it's range to high so middle income group cannot affordable that
jeans so company's profitable ratio so high that big problem and company profit margin ratio go down so
it's selling to high and all over company got profit. Company within 1-2 years launch new product that
kind of company day to day high profit gain.
SWOT Analysis:
Strengths :

Levis enjoys high brand equity. People all around the world recognize the brand name.

 Levis products are unique and innovative in the style.

A lot of variety is offered by Levis ranging from sunglasses to skirts and shirts.
The products are renowned and are considered as the most durable i.e. the long lasting products.
Levis follows a high standard of quality.
Weakness:

Levis products are considered as very expensive. Therefore a large percentage of people are
reluctant to buy the products.
As no discounts are present and products are sold at fixed prices many customers are lost.
Levis does not provide any services like free delivery etc.
Opportunities:
Levis can do more well in the women section. This section is give less importance as compared
to the men section.
The kids section, which has been started from few years, should also be given proper attention to
gain customers.
Sales promotion can be increased by increasing the advertisements expenses so as to enjoy a large
number of customers.
Threats
The threats that Levis faces are the competitors. Although it does not have any competitor in
Pakistan but it does have some competitors at the global level.

RECOMMENDATIONS:

Levis products are considered as the most durable product. Therefore that area is secured. But
the areas which levis lacks are comfort ability and inexpensiveness.If levis 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 Levis is well recognized. We saw in the survey results
that most people just to maintain their high status buy Levis products.Levis pays its maximum
attention to the mens wear. Although the women section and kids sections are present but they
are not full filling the requirements much.The kids section, which is just in start, should be given
attention to attract more customers.A lot of importance should be given as far as the
advertisement is concerned. They should stress on promoting their products especially through
TV media

Conclusion
So from all of our above discussion and explanation, we conclude that: If a
company wants to reach the heights of glory, it must have to focus strongly and
efficiently on its customers needs to create greater customer value, loyalty and
satisfaction &Carefully analyse the strategies of its competitors in order to develop
and use more Efficient marketing strategies than its competitors for greater growth
and market share.
And keep pace with modern trends.

References:
1. http://us.levi.com/home/index.jsp
2. http://www.levistrauss.com/