On A comparative analysis for customer satisfaction level of Levis & wrangler jeans
CERTIFICATE
This is to certify that Mr. Digvijay Singh Chauhan, student of SOC&E, IPS ACADEMY. Indore, of MBA IV SEM (Full Time) program has prepared Major Research Project Report on the topic A comparative analysis for customer satisfaction level of Levis & wrangler jeans. under my guidance.
DECLARATION
I am Digvijay Singh Chauhan student of SOC&E, IPS ACADEMY, Indore, pursuing MBA (IV Sem,Full Time) has prepared the Research on the Topic A comparative analysis for
ACKNOWLEDGEMENT
I would like to take this opportunity to express my since gratitude to all those who guide me in right direction to complete this Project. I express my deep sincere gratitude to Mr. Vivek Kushwah Director of I.P.S. ACADEMY, DEPT. OF MANAGEMENT for his encouragement throughout the course of this study. I also express my sincere thank to Dr. C.K.Goyal lecturer Department of Management Study, I.P.S Academy, Indore, for his constant guidance and assistance throughout this study. Last but not the least, I would like to thank my respondents for sparing their precious time to answer my questionnaire and giving me the valuable information that I needed.
INDEX
Chapter No. Contents Introduction (a)Introduction to Wrangler (b)Introduction to Levis Review of Literature Rationale Of Study Objectives Research Methodology (a) Research design (b) Data collection (c) Variable to be used (d) Tools for data analysis Findings Suggestions Conclusion Bibliography/Webliography Page no.
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CHAPTER I INTRODUCTION
Wrangler is one of the three most popular American jeans brands. And here is the story of how this brand was born. It all stated in 1897 when a 20-year-old young man called S.S. Hudson came to a small textile town of Greensboro, North Carolina, to find a job. The first job offer Mr. Hudson managed to find was sewing buttons on a factory for 25 cents a day. And in seven years the factory went bankrupt. 1904 S.S. Hudson bought a couple of sewing machines, rented a room on the second floor of a grocery shop and registered his own company under the name of "Hudson Overall Co.". The company turned out to be quite a success and 15 years after its establishment it opened the first jeans manufacturing factory. Railroad men liked Hudson's creations to such extent, that they even presented him with a bell, which in course of time became blue because of small particles of indigo color. S.S. Hudson was inspired and renamed his company, which was then called "Blue Bell Overall Co.". 1926 he sold a successfully running company to a textile manufacture "Big Ben" for a hatful of money - 585 thousand dollars We value our customers, and we strive for full customer satisfaction. Each item we manufacture carries a one-year warranty, which covers actual defects in materials or workmanship. Our warranty is a statement of Wranglers continuing commitment to high standards of quality.
For many years, Wrangler has led the way in designing and manufacturing apparel known for superior comfort, function and durability. Soon, the brand will be recognized as a leader in developing protective jeans and shirts as well A recent government reports have noted that the cause of severe and fatal burn injuries on the job is an individual's clothing igniting and continuing to burn -- not the source of the ignition itself. The use of flame resistant clothing provides the necessary thermal protection at the area of exposure. The level of protection resides in the weight and composition of the flame resistant fabric. Once the source of ignition is removed, FR garments will selfextinguish, allowing precious escape time and limiting the percentage of the body that is burned. Even though a person caught in a flash fire or arc flash will most likely still have injuries, FR clothing can greatly reduce their severity. And in many cases, it can make the difference between life and death. Wrangler FR apparel is constructed from flame resistant fabrics and components to protect against burn injuries in the workplace. Designed to meet the rigorous requirements specified by major protection agencies, Wrangler FR garments are yet another example of a leader stepping forward to provide for the needs of its consumers.
Organization Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions: Levi Strauss, North Americas (LSNA), based in the San Francisco headquarters; Levi Strauss Europe (LSE), based in Brussels; and Asia Pacific Division (APD), based in Singapore. The company employs a staff of approximately 10,500 people worldwide, and owns and develops a few brands. Levi's, the main brand, was founded in 1873 in San Francisco, specializing in riveted denim jeans and different lines of casual and street fashion From the early 1960s through the mid-1970s, Levi Strauss experienced explosive growth in its business as the more casual look of the 60s and 70s ushered in the "blue jeans craze" and served as a catalyst for the brand. Levi's, under the leadership of Jay Walter Haas Sr., Peter Haas Sr., Paul Glasco and George P. Simpkins Sr., expanded the firm's clothing line by adding new fashions and models, including stoned washed jeans through the acquisition of Great Western Garment Co.,(GWG), a Canadian clothing manufacturer, acquired by Levi's. GWG was responsible for the introduction of the modern "stone washing" technique, still in use by Levi Strauss Its competitors including VF Corporation, Gap, Abercrombie & Fitch, and Tommy Hilfiger 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. Intrepid International recommends that Levi Strauss should create a new premium denim brand. The new premium denim brand must be cheaper, high quality and a trendy design clothes. To produce cheaper, high quality and a trendy design clothes, the company must begin with a Cost Leadership Strategy. The company needs to implement a low-cost manufacturing process to increase margins. We believe there is still a lot of room for improvement. In 1988, the brand launched Dockers for Women, a feminine interpretation of Dockers brand apparel. The line offers fashionable tops, dress and casual pants and a full range of accessories designed to fit a variety of different body types and sizes. Today, the Dockers Brand has expanded to more than 50 countries in every region of the world with a complete assortment of stylish and innovative products including a full line of tops, footwear, outerwear and accessories for a broad range of consumers. 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
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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 jackets for men, women and children all designed with the high quality. Through the 1950s and 1960s, the company doubled sales every three to four years. By the end of the 1960s, the company's operations slacks, and sportswear for men, as well as a range of apparel for women and children. In 1968, new divisions for youth wear, sportswear, and accessories were created. The Levi's for Gals marketing unit was expanded into a full-fledged womens wear division. In addition, Levi Strauss International was formed as a subsidiary, enabling the company to parlay its legend All-American image to foreign consumers eager town a piece of Americana. With all this growth activity, LS & Co.'s worldwide sales in 1969totaled $251 d o n. The rapid expansion necessitated further capital. In 1971, the company was taken public with an initial public offering of $47.50 per share. Sales continued to experience rapid growth as baby boomer teens entered college. By 1975, sales had reached $1-bdhon, and rose to $2 billion in 1979. During this time the company's flagship product, 501 jms, remained it stop-selling product, continued to hold nearly a thud of the U.S. jeans market. Production expanded locally and broad to meet continuing demand. Nonetheless, given the slow growth among its primary market, 1224 year olds, cash-rich LS & Co. considered alternative actions to hedge against an expected decline in the jeans in the 1980s. In the early 1980s, LS & Co. adopted strategy to expand beyond the core jeans lines to utilize the Levi's name on non-jeans. "We are, not going to forget the gal
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The project was done to obtain the current level of satisfaction of Levis & Wrangler jeans users. So also, what are their preferences in buying jeans? Both coupled yielded reasons for current level of satisfaction and means to increase it. There was insufficient secondary data due to which primary data was collected. The project was conducted within the geographical region of Treasure Island shopping Mall, Indore with a sample size of 100 respondents each. The data collected was analyzed with the help of Statistical tools like frequency charts like bar and pie were used to analyze the data. The findings analyzed and based on the analysis conclusions were Drawn and requisite recommendations were provided. These Included: 1) Concentrating more on advertising 2) Increasing availability through local outlets 3) Reaching the economy segment etc.
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CHAPTER IV OBJECTIVES
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Comparative analysis between Levis & Wrangler jeans To study and measure satisfaction level of Levis & Wrangler jeans user. To suggest alternatives for enhancing customer satisfaction.
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CHAPTER V HYPOTHESIS
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All respondents have either Levis jeans or Wrangler or planning to buy one. All respondents who have Levis & Wrangler jeans are satisfied with it. There is no significant difference between the working processes of all stores of Levis and Wrangler jeans.
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RESEARCH METHOD
Exploratory and Descriptive research methods.
RESEARCH DESIGN
The study is to be conducted to study and measure the satisfaction level of Levis & Wrangler jeans users. A secondary as well as primary source of data will be used to arrive at findings and analyze the results. Secondary sources of data like internet and books will be used to do exploratory studies. Relevant variables will be generated and questionnaire is developed to obtain primary data from the market. 100 respondents of each selected will be necessarily Levis & Wrangler jeans users.
SAMPLING DESIGN
The respondents must be necessarily Levis & Wrangler jeans users. The sample is selected from the restricted area at Treasure Island shopping mall. It will be a non-probability based sampling based on convenience.
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DATA ANALYSIS Following were the findings from the data collected
From the analysis of how many jeans does age group of respondents own, it is evident that the respondents of age group 16-25 and 26-35 tend to own more than one or two pairs of jeans (75%). The other age group above 26-35 rarely own more then one or two pairs of jeans. Therefore, from this we get to know that the people who regularly buy jeans belong to young generations group ranging between 16-35.
35 30 30 30
Age of respondent
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Majority of respondents who own one and two Levis or Wrangler jeans tends to
buy jeans twice a year (40%). Many of the respondents also buy jeans occasionally.
25 21 20 15 15 10 10 5 5 0 0 one two three more then 3 5 10 8 6 5 6 4 5 once in three months occasionally twice a year once a year
0 0
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65% respondent of the age group 16-35 prefers to buy Levis jeans in spite of Wrangler jeans. As age group increases the preference for Levis jeans decreases and Wrangler jeans increases as it shows in graph below.
16-25 60 40
26-35 38 12
36-45 23 17
Above 45 3 7
Age of respondents
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Ranking different brands of jeans by respondents shows that they prefer to buy Lee first followed by Levis then Pepe .In this Levis is second preference of respondents and Wrangler is preferred at fourth place.
Brand preference
LEVIS 55
PEPE 40
NEW PORT 15
WRANGLER 25
LEE 65
preferance
3.5 3 2.5 2 2 1.5 1 0.5 0 Lee Levis Pepe Wrangler New port 1.25 0.75 preferance 3.25 2.75
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58% of respondents told that their satisfaction level doesnt affect by the advertisement and promotion activities, once they purchase jeans. 29% says that their satisfaction level get affected by sales promotion activities after purchase.
Column1
Effect on satisfaction level after post purchase advertisement and promotion activities
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The highest ranked attribute was given to durability of cloth and stitching followed
by trendy look, fitting style and so on as shown in graph in case of Levis.
9 8 7 6 5 4 3 2 1 0 Levis Wrangler
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From the frequency analysis of open ended questions, most recurring 4 response
were put in pie chart, which include excellent fitting, in style, trendy and rugged. The top response for Levis was excellent fitting (33%), followed by trendy (26%), rugged (22%) and in style (19%) whereas Wrangler scored top in excellent fitting (30%), followed by in style (27%),trendy (23%) and rugged (20%) respectively.
26% 19%
rugged
20%
30%
23% 27%
trendy rugged
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On observing income group and No. of pairs of jeans owned it if found that most of respondents belonging to age group 16-35 prefer Levis jeans then wrangler.
70 60 50 40 Levis 30 20 10 0 below 1 lakh 1-3 lakh 3-6 lakh above 6 lakh Wrangler
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FINDINGS
From the analysis of how many jeans does age group of respondents own, it is evident that the respondents of age group 16-25 and 26-35 tend to own more than one or two pairs of jeans (75%). Majority of respondents who own one and two Levis or Wrangler jeans tends to buy jeans twice a year (40%). Many of the respondents also buy jeans occasionally. 65% respondent of the age group 16-35 prefers to buy Levis jeans in spite of Wrangler jeans. Respondents prefer to buy Lee first followed by Levis, Pepe and Wrangler 58% of respondents told that their satisfaction level doesnt affect by post purchase adverting and promotion. Both Levis and Wrangler share top ranking in durability of cloth and stitching but Wrangler fails in trendy style and price vis--vis quality. Most of the respondent belonging to income group 1-3 lakh prefer to purchase Levis jeans then wrangler.
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From the above analysis and finding following suggestion could b drawn:
Levis should more aggressively tap the youth segment, which lies in the age group between 16-35. The reason for the same is Levis was ranked second in terms of the overall brand image. Hence, Levis has a scope to reach the top position and encase through increase in sales. Same is with Wrangler .wrangler should also provide jeans which is liked by youth segment Levis and Wrangler should try to provide best offer twice in year because most of respondent prefer to buy twice in year. Wrangler should use sales promotion activities like advertisement, sales promotion and provide attractive offer so people should buy Wrangler jeans since it comes at forth position in respondent preference. Levis and wrangler are perceived as premium brand in India. Hence, an economy product range can also tap the unexplored middle class range Since Levis and Wrangler jeans is majorly available in departmental stores and factory outlets, reaching the customer and availing him with consumer schemes is difficult. India having a large middle class customer group still being not exploited can breach through making Levis jeans available at local retail outlets. Wrangler lacks in style and trendy look which is most demanding factor in youth segment so it focus on its look and verities. Wrangler should increase its product line and depth. To compete with the current market scenario Wrangler should revive its advertisement strategy.
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CHAPTER IX CONCLUSION
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To conclude we can say that Levis jeans are a very much preferable jeans because of its trendiness and fitting style. It is most preferable jeans in youth segment ranging from 16- 35years of age group, whereas wrangler is less preferable because it going it is not with present trend. As far as customer satisfaction is concerned Levis is moving ahead of wrangler and the reason behind is Levies is very much popular and having very stretched product line. At the same customer of Levis are also suffering from TOMA (top of mind awareness) .this is one of the main reason why people consider Levis rather than wrangler.
If we look at the promotion side of both the companies, Levis is putting greater efforts then wrangler at the same time wrangler must increase its number of retail stores because Levis has occupied much larger market space then wrangler. at last we can say Levis is in better position then Wrangler as per as brand name is concern so Wrangler must have to implement the above given suggestions.
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BLIOGRAPHY \ BIBLIOGRAPHY
WEBLIOGRAPHY
www.google.com www.levi.com www.levistrauss.com www.wikipedia.org www.wrangler.com www.wrangler.in
BIBLIOGRAPHY.
Marketing Research- TATA McGraw Hill Marketing Research Malhotra Marketing Management Philip Kotler Retail Management- Levy Weitz book Introduction to Operations and Supply Chain Management - Robert B. Handfield
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Annexure
QUESTIONNAIRE
Respondent No. _____ DEAR RESPONDENT, I Digvijay singh chauhan student of IPS ACADEMY Indore (MBA), conducting a survey about the consumer satisfaction with Levis Jeans. Please let us know what you really think about Levis Jeans. Please spare your valuable few minutes and share your feedback with us.
NAMEOCCUPATIONdo you fall?(per annum) Below 100, 000 300, 000 600, 000
AGE-
SEX-
Occasionally
Once a year
During promotions
Seasonal offers
Not fixed
5) Rank the following brands on a scale of 1-5 (5 being most preferred and 1 least)
a) b) c) d) e)
7) How satisfied are you on the following parameters of Levis jeans? Extremely Dissatisfied Durability of Cloth Price vis--vis quality Range of colours Range of fitting styles Range of sizes Durability of stitching Washing convenience Range of shades After sales service Somewhat Dissatisfied Neither Satisfied nor Dissatisfied Somewhat Satisfied Extremely Satisfied
decision making process: (9 being the most important and 1 being least)
a. b. c. d. e. f. g. h. i. j. Durability of cloth Durability of stitching Trendy clothes Range of fitting styles Range of sizes Range of shades After sales service Advertising Promotion Price
___________________________________ 10) Do you find Levis jeans usage friendly? Yes No THANK YOU FOR SPENDING YOUR VALUABLE TIME I ASSURE YOU THAT THE INFORMATION WILL BE KEPT CONFIDENTIAL AND WILL BE USED FOR ACADEMIC PURPOSE ONLY
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QUESTIONNAIRE
Respondent No. _____ DEAR RESPONDENT, I Digvijay singh chauhan student of IPS ACADEMY Indore (MBA), conducting a survey about the consumer satisfaction with Wrangle Jeans. Please let us know what you really think about Levis Jeans. Please spare your valuable few minutes and share your feedback with us.
NAMEOCCUPATIONdo you fall?(per annum) Below 100, 000 300, 000 600, 000
AGE-
SEX-
Occasionally
Once a year
During promotions
Seasonal offers
Not fixed
13) How many pairs of Wrangler jeans do you have? 2 2 3 more than 3
14) Rank the following brands on a scale of 1-5 (5 being most preferred and 1 least)
f) g) h) i) j)
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16) How satisfied are you on the following parameters of Wrangler jeans? Extremely Dissatisfied Durability of Cloth Price vis--vis quality Range of colours Range of fitting styles Range of sizes Durability of stitching Washing convenience Range of shades After sales service Somewhat Dissatisfied Neither Satisfied nor Dissatisfied Somewhat Satisfied Extremely Satisfied
17) Rate the following attributes on a scale of 1-9 in affecting your Decision making process: (9 being the most important and 1 being least) a. Durability of cloth b. durability of stitching c. Trendy clothes d. Range of fitting styles e. Range of sizes f. Range of shades g. Advertising h. Promotion i. Price
___________________________________ 10) Do you find Wrangler jeans usage friendly? Yes No THANK YOU FOR SPENDING YOUR VALUABLE TIME I ASSURE YOU THAT THE INFORMATION WILL BE KEPT CONFIDENTIAL AND WILL BE USED FOR ACADEMIC PURPOSE ONLY
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