HOMEWORK #1

OF
MARKETING
MANAGEMENT

Submitted To:
Ms. Kanika Jhamb

Submitted By:
Leena Mohan
RA17B1A30
B-tech(Hons)+MBA(CSE)
Describe the targeting strategy of Levi’s. Describe the target market &
explain the strategy being used to reach the market.

LEVI’S
Levi’s is a brand of Levi Strauss & Co., a company which is worldwide recognized to be
one of the prime marketers in apparels.

Levi’s Strauss & Co. was founded by Levis Strauss who was a Bavarian immigrant in
United States. Till 1870, his business of making sturdy pants for miners in the name
of Levis Strauss and Co. In 1873, a European immigrant Jacob Davis and Levi
Strauss agreed to patent the idea of Davis with financial help from Levis Strauss
and their first product was identified by lot no. 501.

Levi’s takes pride in making original and authenticated jeans. They define a wide
quality of products, from quintessential classics to favorite fits and styles. Their
products range from shirts to cotton pants, from accessories and belts to ladies
bags, from sunglasses and wallets to jackets and shoes.

Today, Levi Strauss & Co. has Levi’s, Dockers, Denizen and Signature brands which
are trusted by people from all arena of life. These are the brands that are
recognized for their quality, integrity and originality. Levi’s and Dockers are the
original, authentic and peerless denim and khakis which have set a standard by
them. The quality craftsmanship and premium fit in family clothing have made
Signature brand a benchmark. The jeans for new generation are the specialty of
Denizen brand of Levis Strauss and Co.

The employees at Levi Strauss have strong belief that business can drive profits through
principles.

 Empathy — walking in other people’s shoes

This begins with closely analyzing the people’s needs and then responding to the needs of
their customers and pther staleholders..
 Originality — being authentic and innovative
Levi Strauss were the ones who invented first pair of blue jeans and they believe in
innovating new products and practices..
 Integrity — doing the right thing
The principles of doing business of Levi Strauss is in agreement with the ethical conduct
and social responsibility..
 Courage — standing up for what we believe
Levi Strauss is always willing to challenge the existing and conventional wisdom by their
innovative and true knowledge.

Levi Strauss is the energy and events of their time, inspiring people from all walks of life with a
pioneering spirit. They are the ones who have been leading since generations in jeans and hence
we can also say that Levi’s is a symbol of freedom in times of adversity and social change.
OBJECTIVE OF THIS PROJECT
In this project, I intend to study the marketing strategy of Levi’s by concentrating on its
segmentation, targeting and positioning strategies. I am focusing on the targeting strategy that
the brand follows to reach the market.

TARGETING STRATEGY
Levi’s is mainly targeting the upper class and upper middle class of the society and it follows
demographic segmentation. It has divided its targeted customers into various segments
based on the gender, age and income.

It has distinct products like jeans, pants, shirts, jackets, cords, wallets, shoes,
sweaters and knits for men and jeans, tops, jackets, ladies bag, skirts and dresses
for women.

Then on the basis of age, it has distinct range of products for adults, teenagers
and kids.

For teenagers Levi’s has jackets, vests and jeans. Levis offers jeans for kids in the
age group of 1 to 2 years, toddlers and children up to 16 years of age.

All the more, it has various segments based on income. The PREMIUIM segment of
LEVI’S ranges from Rs. 2000 to Rs.4000, the SUPER PREMIUM segment ranges from
Rs.4000 to Rs.6000 while the Connosieur segment ranges from 6000 to 12000.

Levi’s follows a differentiated marketing strategy which is a selective or focused

specialization strategy. The differentiation strategy is an integrated set of actions taken
to produce goods and services.

M1 M2 M3

P1

P2

P3
Suppose, M1, M2 and M3 are three market segments and P1, P2 and P3 are the 3
products. Lets assume M2 is a market segment which is made of upper class and
upper middle class and Levis is targeting Market M2. Since Levis launches all its
products in this market itself, hence it is going for Market specialization.

Customers tend to be loyal purchasers of products that are differentiated in ways

that are meaningful to them and hence customer’s sensitivity to price increase is
reduced and customer loyalty to products in increased.

It goes for the market specialization. It selects few attractive segments which may or may not
have any synergy among them. It gains reputation by selling its products to different market
segments and designs products for each segment.

ADVERTISING STRATEGIES
Levi’s advertises its products in a very stylish way. For example, they have a very unique
slogan-“TWISTED TO FIT” which gives an illusion of customized products made especially for
individual customers to fit then snugly. This is in contrast to the fact that the products are
standardized products and not individually designed. Levis advertises its collection of jeans into
various designs like leggings, Capri, boot cut, skinny, straight and flare.
Then there are a series of advertisements that focus on teenagers which highlights the fresh
launches for the teenagers. These advertisements combined with many others are a very efficient
tool in attracting massive crowds towards the Levi’s products.

PROMOTIONAL STRATEGIES
Promotional strategies incorporate all the methods using which a company propagates the values
and benefits of its products among its targeted customers to coax them for buying that product.
To promote its products which cost more than Rs. 1500, it has come up with an EMI facility
using which the customers shopping for more than Rs.1500 can settle the remaining amounts in
three equal installments through their credit cards. This strategy is very helpful in alluring the
customers who cannot these high amounts at a time for purchasing apparels and other products
of Levi’s and also to ensure that the sales throughout the year is sufficiently high throughout the
year so that they have a healthy working capital with them.
Levi’s uses the marketing channels -communication channels and
distribution channels to reach the target market. Levi’s uses newspapers,
radio, television, billboards, posters and internet to reach to its customers
and also the distribution channels which includes warehouses, wholesalers,
retailers and distributors, etc. to deliver the final product to the customers.

Hence, we can summarize saying that Levi’s is a company that believes in investing heavily into
advertising, sales, promotion, personal selling and public relations.