INTRODUCTION

The company was founded by Levi Strauss in 1853 in San Francisco, California. Since the patent of the rivets in jeans in 1873, the company achieved monopoly power Monopoly power was gained through entry barriers and product differentiation In 1890 the firm assigned its first lot numbers to its products, and the famous number "501" was assigned to the riveted pants Levi Strauss & Co. (LS&CO.), one of the world's largest apparel manufacturer brand Sold in over 110 countries, in more than 55,000 retail locations worldwide Manufactures jeans in approximately 108 sizes and 20 finish fabrics 3 Brand Portfolio - Levis , Dockers & Levis Strauss Signature

DISTRIBUTION OBJECTIVES:
- To equalize the demand & supply of products at all places. - To provide desired products at proper place. - To fulfill the requirements of every locality according to the taste of the people. - To increase the brand equity by reaching every corner of the world.

MARKETING STRATEGY SINCE 1850:

Online Marketing Strategy: Apparel retailer Levi Strauss was established in the 1850s and became known throughout the fashion industry for its name brand clothing including jeans, casual and dress pants, shirts, jackets, and accessories. Seeing the Internet as a potential marketing channel, the firm developed an Internet strategy in the mid-1990s. Launched to cater to both U.S. and European customers, Levis.com also featured pages, dedicated to its target audience of 15-to24-year-olds that covered fashion and cultural issues. Shortly after the Web site's debut, Levi Strauss introduced a new marketing scheme entitled I-candy. The interactive advertising was available on various Web sites, including music sites MTV and Addicted to Noise, in the form of a blinking eye. When Web surfers clicked on the eye, an interactive commercial appeared, touting the Levi's brand. In 1998 Levi Strauss planned to use its online efforts to regain a hold on the apparel market due to declining market share. The company also was prompted to begin e-tailing when customers began complaining about not begin able to order Levi's brand products online or by telephone. As a result, an e-commerce plan was developed and in November of 1998 Levis.com began selling 120 items from the Levi's branded apparel line. The site featured a tool entitled Style Finder, which asked online shoppers a series of questions related to

fashion, music, and entertainment, and then made apparel suggestions based on the shoppers responses. It was done to shop and buy Levis products easier.

Offline Marketing Strategy:

Declining sales forced Levis into a major re-think culminating in a new strategy in which both product and advertising innovation are now challenging creative boundaries and evolving hand-in-hand. As consumer tastes shifted away from denim in favor of combat gear and cargo pants. LEVIS had something to do to stem falling sales, and fast. The Company made a brave decision. Structural change was needed to drive through any shift in product or communications strategy. While the sales of LEVIS 501 are still in a decline, sales of LEVIS engineered jeans are rising steadily and the line now accounts for 9-10% of the total sales by volume for the LEVIS brand LEVIS has expanded its distribution channels and product ranges in order to reach more consumer segments. LEVIS has revitalized its retail relationships. Indeed the company has turned its retail customers relationships into strong and mutually beneficial ones.

LEVIS strategy for choosing channels is according to the product, mostly LEVIS is limited to its wholesalers, because the unit value is high & cost related issues occur. LEVIS is using selective but intensive distribution level for the distribution of its products. LEVIS plans to have more than one distribution model for different segments or regions. It uses a distributer to serve small outlets but manages large one directly through a small group at the centre. It has also begun to open its own franchised retail shops to carry its own brand exclusively.

MARKETING CHANNELS ADOPTED BY LEVIS:

Product line Levis Vintage Clothing and the Levis Red

Description

Distribution channel

Retail price

Small group of premium tops and bottoms that were based on key heritage styles with premium fabrics Variations of Levis Red Tab products with changes to fabrics and finishes

High end specialty stores (Exclusive distribution level)

Bottoms: Over $100

Levis Premium Red Tab

Specialty stores Independent shops Original Levis stores (Selective distribution level) Specialty stores Independent shops Original Levis stores (Selective distribution level) Departmental stores Chain stores Independent shops Original Levis stores (Intensive distribution level) Departmental stores Independent shops Original Levis stores

Bottoms: between $50 and $100

Levis Engineered Jeans

Group of tops and bottoms that were engineered for special mobility

Bottoms: between $50 and &80

Levis Red Tab Levis Silver Tab

The core of the Levis brand incl. the classic 501 button-fly jean as well as a series of models featuring slim, baggy, straight leg fits Incl. all other products as bags, belts, footwear etc.

Bottoms: between $30 and $50 Bottoms: Between $25 and $50

Other Levis product

All price ranges depending on product category

Submitted By:
Udit Mehrotra 2011208 Sudev Rajdarshan 2011198 Vibhore Jaiswal 2011225 Vinamra Kumar 2011227