BRAND REPORT Company Profile, Marketing Mix, SWOT Analysis, Customer Based Brand Equity & Comparative Review

Saturday, April 21, 2012

O U R
Rubab Saleem 009 -----------------------------Anam Nazir 019

T E A M
Uzma Jamil 014 ------------------------Shanawer Baig 035

Zainab Ashfaq 012 ----------------------------Sidra Shirazi 025

----------------------Deeba Sabahat 040

----------------------Ali Riaz 041

------------------------Musa Raza 063

------------------------

---------------------Syed Muhammad Omer

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Project Report Submitted To: Mrs. Sajida Nisar

Assistant Professor IBA, University Of Punjab

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TABLE OF CONTENTS

TABLE OF CONTENTS...................................................................................................................................................................................................... 3 ACKNOWLEDGEMENTS .................................................................................................................................................................................................. 7 EXECUTIVE SUMMARY ................................................................................................................................................................................................... 8 HISTORY ....................................................................................................................................................................................................................... 11 GROWTH ...................................................................................................................................................................................................................... 11 GROWTH IN PAKISTAN ................................................................................................................................................................................................. 12 LEVIS HIERARCHY ......................................................................................................................................................................................................... 13 EXTERNAL PARTNERS ................................................................................................................................................................................................... 15 INTERNAL STAKEHOLDERS ........................................................................................................................................................................................... 15 LEVIS BRAND ELEMENTS ............................................................................................................................................................................................. 17 TARGET MARKET .......................................................................................................................................................................................................... 23 POINT OF DIFFERENCE ................................................................................................................................................................................................. 23 POINT OF PARITY.......................................................................................................................................................................................................... 25 POSITIONING................................................................................................................................................................................................................ 25 VALUES ......................................................................................................................................................................................................................... 27 BRAND MANTRA .......................................................................................................................................................................................................... 27 POSITION COMMUNICATION....................................................................................................................................................................................... 28

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Product ..................................................................................................................................................................................................................... 28 Price ......................................................................................................................................................................................................................... 29 MARKETING MIX .......................................................................................................................................................................................................... 32 PRODUCT ..................................................................................................................................................................................................................... 35 BRANDS .................................................................................................................................................................................................................... 35 LEVIS ...................................................................................................................................................................................................................... 35 DOCKERS ................................................................................................................................................................................................................ 36 LEVIS STRAUSS SIGNATURE.................................................................................................................................................................................... 36 PRODUCT ATTRIBUTES ............................................................................................................................................................................................. 37 VARIETY .................................................................................................................................................................................................................... 37 FEATURES: ................................................................................................................................................................................................................ 47 LEVIS PORTFOLIO ANALYSIS .................................................................................................................................................................................... 48 PRICE ............................................................................................................................................................................................................................ 51 List Price: .................................................................................................................................................................................................................. 51 Credit Sales: ............................................................................................................................................................................................................. 51 Discount: .................................................................................................................................................................................................................. 52 Payment Period & Credit Terms: ............................................................................................................................................................................. 52 Price Determination: ................................................................................................................................................................................................ 52 Competitors: ............................................................................................................................................................................................................ 52 PLACE ........................................................................................................................................................................................................................... 55 Placement objectives ............................................................................................................................................................................................... 55 Channels ................................................................................................................................................................................................................... 55

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Strategy .................................................................................................................................................................................................................... 56 Location.................................................................................................................................................................................................................... 56 Countires .................................................................................................................................................................................................................. 56 PROMOTION ................................................................................................................................................................................................................ 60 Promotion objectives ............................................................................................................................................................................................... 60 Sales promotion ....................................................................................................................................................................................................... 61 Advertising ............................................................................................................................................................................................................... 61 Advertising mediums ............................................................................................................................................................................................... 62 Happenings .................................................................................................................................................................................................................. 65 Tools used by Levi Srauss & Co. for measuring Customer Satisfaction ....................................................................................................................... 66 SWOT Analysis.............................................................................................................................................................................................................. 67 CUSTOMER BASED BRAND EQUITY .............................................................................................................................................................................. 70 Brand Awareness and Usage ................................................................................................................................................................................... 70 Brand Judgments ..................................................................................................................................................................................................... 73 Brand Performance .................................................................................................................................................................................................. 77 Brand Imagery .......................................................................................................................................................................................................... 78 Brand Feelings .......................................................................................................................................................................................................... 81 Brand Resonance ..................................................................................................................................................................................................... 82 Demographics .......................................................................................................................................................................................................... 83 COMPETITIVE REVIEW ................................................................................................................................................................................................. 84 Conclusion & Recommendations ................................................................................................................................................................................. 88 References ................................................................................................................................................................................................................... 90

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ACKNOWLEDGEMENTS
We would like to express the deepest appreciation to Mr. Usman Khan, the brand manager and the brand management team including Mr. Khalid Tiwana, Mr. Amir Rana and Mr. Zaid Malik at Levis Pakistan who really helped us through out the course of this project. Without their help and support, this dissertation would not have been possible. We would also like to thank Mrs. Sajida Nisar for helping us at numerous occassions when we got stuck, and for the support and guidance throughout the session. Finally we would really like to thank all parties whose name we are forgetting that made this dissertation a success.

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EXECUTIVE SUMMARY
Levi Strauss is a Multi-National Enterprise and primarily a Denim manufacturing brand. Levi Strauss has been operating for over a hundred and fifty years now with the primary goal to provide the most widely worn casual clothes to the world. Levis has three global segments; Singapore, Brussels and San Francisco, the head office being San Francisco. The Brand Levi Strauss has three sub brands which cater to the needs of different customers, namely Levi's, Dockers and Signature. The report contains the detailed analysis of the current status of the brand which has been derived using the following: History and stages of growth, Brand hierarchy, Customer based brand equity pyramid using primary research, Positioning of the brand using the 4 Ps of marketing, Brand values, Brand mantra, Branding elements, Names, Logos, Slogans,

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Marketing activities employed by the firm to communicate their messages, Competitive review, Pricing channels, Brand value proposition, Budgeting, Perception of company workforce and manufacturers about the brand.

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HISTORY, GROWTH & HIERARCHY

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HISTORY

Levi Strauss founded Levi Strauss and Co. commonly known as Levis in 1853 in San Francisco, California. Initially the store sold pants, trousers, undergarments, and other fabric products. A local tailor named Jacob Davis had an idea to reinforce the strain points on trousers by using copper rivets. He joined Levi in his business and they received the patent for the rivet on May 20, 1873. The rivet became the symbol of Levi Strauss Jeans; it was incorporated into their logo, their advertisements, and of course their jeans.

GROWTH

Levis started making denim overalls in the mid 1870s. In the 1950s and 1960s the Levis jeans became very popular among various different youth subcultures, primarily because of its sheer originality and rugged nature. Levis experienced tremendous growth in the 1960s and 1970s as the more casual look of the time ushered the blue jeans craze and served as a catalyst for the brand.

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The immensely popular shrink-to-fit 501s were also introduced in this time period. Levis expanded from 16 to 64 plants during that time. Levis launched Dockers in 1986 to cater for demands for cotton apparel at that time.. Levis also introduced new labels such as the Red Tab, and the Signature series in affiliation with Wal-Mart.

The Levis corporation is divided into three main categories on geographic basis, having main office at San Francisco and regional offices at Singapore and Brussels.

GROWTH IN PAKISTAN

Levis was officially launched in Pakistan in the year 2000. It started with a few outlets and now it has 44 outlets in 9 major cities of Pakistan. Along with its outlets it also operates various franchises and has leased departments in various malls all over Pakistan. Levis has faced tremendous growth in Pakistan. Though during last two years their sales remained stagnant but still in the year 2008 Levis sales were second highest in Pakistan after Japan, in the Asia Pacific region.

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LEVIS HIERARCHY

Levi Strauss has a very extensive brand hierarchy but here well focus on the hierarchy of Levis only. Levis has three basic categories tops, bottoms and non-apparel accessories. Further focusing on the bottoms it is seen that they are further divided into 5 categories. Red tab one of the most popular category of jeans has further 9 sub categories that positively adds to customer equity. The advantage of Levis such broad brand category is that it has established articles such as 501, 751 etc. Now whenever the company wants to implement any change such as a new style in their jeans they can easily do that with the help of their established articles without even promoting them too much as their competitors has to do. The reason is immense popularity and recognition of Levis articles among its consumers. The only disadvantage that can be of this hierarchy is that if some new design fails it can negatively add to the popularity of the article but the company has never as such faced such a situation.

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EXTERNAL PARTNERS

Levis has a diverse and inclusive workforce, and a team environment that respects and embraces different cultures, styles, viewpoints and experiences. The sales force of Levis including channel partners, independent sales reps and strategic supplier partners knows how important is the brand values to the company and how they should be properly communicated to the customers to increase brand loyalty.

INTERNAL STAKEHOLDERS

Levis products are made in over 700 factories in 45 countries around the world. Levis audit its suppliers factories and work with them to improve conditions. They partner with governments to strengthen laws protecting workers. They also work with local human rights organizations in countries where they manufacture to educate and empower workers. Levis has set some strict quality standards with which their manufacturers have to comply in order to work with Levis.

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BRAND ELEMENTS & SLOGANS

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LEVIS BRAND ELEMENTS

Like every successful and famous brand of the world, LEVIS also uses a combination of brand elements to maintain a strong brand identity. All of these brand elements are so widely and deeply known by the average person that we were amazed that in a country like Pakistan where Levis is only catering to the higher SECs, these brand elements were instantly recognizable. These brand elements provide a positive contribution to brand equity that implies certain valued associations or responses. Levis brand elements include: The Red Tab

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Arcuate

Levis (brand name)

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The two horses symbol

URL (levistrauss.com& us.levi.com)

The Copper Rivets

Spokespersons (for the local market specifically) 19 | P a g e

Slogans A style for every story. Have you ever had a bad time in Levi's? Quality never goes out of style. Levis. Original jeans. Original people. Our models can beat up their models.

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The entire set of brand elements makes up a strong brand identity. They have played a crucial role in developing a strong brand recognition and brand recall providing deep and wide brand awareness for Levis. These brand elements reinforce each other in providing a consistent brand image for the firm. Using symbols like two horses stretching a pair of jeans and the copper rivets as a trademark reinforce the companys image of strength, quality, durability and authenticity.

These brand elements are the basic brand building elements of the firm. Levis consumers are at the stage of resonance with the brand name and the other elements. They associate themselves with the red tab, they regularly visit the stores and Levis web sites and are actively participating in the campaigns like GO FORTH. They are deeply attached to the brand elements that the counterfeit market has taken advantage of this fact and have increased their sales by just putting some of Levis registered trademarks on their garments. Levis brand ambassadors have contributed hugely to the equity of the brand as secondary associations that have further elevated the brand resonance

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CURRENT BRAND STATUS

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TARGET MARKET

Levis is targeting its market on the demographical and behavioral bases. It is mainly targeting upper and upper middle classes and has adopted the customer-oriented approach of segmentation. Main objective is to provide the best quality products to its target customers and to build the strong and long-term relationship with them. Although Levis is offering variety of products to almost all age groups but the main emphasis is on youth because youngsters are not only particular in their taste but also are big spenders on the fashion clothing. Levis, being a trendsetter offers a huge variety of casual fashion clothing so its key market i.e. the youth but oldies are also on the list because they have had a long relationship with the brand.

POINT OF DIFFERENCE

Point of difference is a key element in the positioning statement. Readymade clothing market is a very competitive market but Levis with its compelling distinct features stand out. Following are some of these differences. Levis is the pioneer of change in the casual readymade garments industry and is always up to date with fashion trends in the world. It strictly emphasizes a youthful image. Levis spend huge amount on R&D unlike its competitors. Levis is present in the local market as a company, not just as a franchise.

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Levis never compromise on quality of its products and for this purpose it has established quality standards for its manufacturers and suppliers by paying them high. But their local competitors do not emphasize on paying much to vendors and quality maintenance rather trying to maximize their profit margin. Social awareness and corporate responsibilities are deeply woven into the fabric of Levis. It has been and continues to be a leader in promoting AIDS/HIV. Levis is also making difference by community involvement. In Pakistan Levis is running a campaign for Sawat people. They have designed special bags and money obtained from the sale of those bags goes to the IDPs. The rivet of Levis can also be referred to as its point of difference. As it serves as the identification mark for the company, distinguishes it from its competitors. Levis holds the exclusive patent for its protection.

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POINT OF PARITY

The main point of parity of Levis is that it offers readymade garments like all of its other competitors. Levis launches two editions of clothing each year one summer and one winter like most of its competitors

POSITIONING

Levis Strauss has always positioned itself as the brand that will clothe the world. Levis in Pakistan have drawn significantly on their own company history to lend authenticity and originality to the brands image. One immediately associates their red tag with ideas of freedom and rebellion. Their advertising campaigns have often centered on images of Rock and Roll and rebel youth to support the idea that they are the brand of the youth

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Its brand essence has been described in the following categories.

Originality
The first and genuine form of something from which others are derived Fresh and unusual Pioneering

Definitive
Most authoritative Serving to define Iconic Versatile 26 | P a g e

Global Character
These are specific set of value characteristics that are always present in their products, style and anything and everything they do. In a way these characteristics are the same way as you think of a persons character or personality. Confidence/brave Youthful Free thinking Individual Ruggedness

VALUES
Levi Strauss states, Our values are fundamental to our success And identifies its four core values as Empathy, Originality, Integrity and Courage

BRAND MANTRA
They do not have any brand mantra but they relay deeply on their core values and have a very convincing tag line Quality never goes out of style

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POSITION COMMUNICATION
The position of Levis is then conveyed through all of its 4 Ps. Product Price Placement Promotion

Product
(a) The Product Line Breath

The different products available to the customer include Jeans, tops, sweaters, jackets and outerwear. Kids wear products. Lounge wear and sleep wear. Belts, wallets and bags Golf apparel Eye wear

(b)

Product Line Depth

The colors and sizes vary according to the gender for which they manufacture the jean. Blue Black White 28 | P a g e

Grey Red Green Brown etc.

Price
The clientele of Levis is considered to be a part of the levis community, mainly the Upper middle & the upper class, who are deeply loyal customers of Levis. They are highly brand conscious but not price conscious . Levis has three price segments:

Segment Premium segment Super premium segment Connoisseur segment

Price Range Rs 2000-4000 Rs 4000-6000 Rs 6000-12000

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Levis is also offering highly expensive products in a different collection called the LVC ranging from Rs 12000 to 35000 for the elite class. Value pricing method Levis has adopted high-low pricing which is a type of value pricing. They charge higher prices on an everyday basis but they put up seasonal sales (at the end of February & in September, to clear out seasonal stuff) and promotional sales (once a year in which it gives its customers various discount offers).

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MARKETING MIX

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MARKETING MIX

The marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in the target market. Marketing-mix decisions must be made for influencing the trade channels as well as the final consumers.

McCarthy classified these tools into four broad groups that he called the four Ps of marketing: product, price, place and promotion. Note that the four Ps represent the sellers view of the marketing tools available for influencing buyers.

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PRODUCT
Product variety

PLACE
Channels Coverage Assortments Location

Quality Design Features Brand name Packaging Sizes Services Warranties Returns

MARKET MIX

Inventory Transport

Target Market

PRICE
List Prices Discounts Allowances Payment Period Credit Terms

PROMOTION
Sales Promotion Advertising Sales Force Public Relations Direct Marketing

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PRODUCT

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PRODUCT

Product means set of tangible and intangible attributes which may include packaging, color, price, quality and brand plus the sellers services and reputation. A product may be a place, service, good or promotion.

BRANDS
Brand is a name, term, sign, symbol or design that adds value to the products. LS & CO. earns remarkable revenues throughout the year coz its products are considered to be the worlds largest quality products. LS & CO. is basically divided into 3 sub brands i.e. Levis, Dockers and Levis Strauss Signature. All the three brands are providing different quality products.

LEVIS
Invented in 1873, Levi's jeans are the original, authentic jeans. They are the most successful, widely recognized and often imitated clothing products in the history of apparel. Levi's jeans have captured the attention, imagination and loyalty of generations of diverse individuals.

As the inventor of the category, the Levis brand continues to define jeans wear with widest range of products available from quintessential classics, such as the famous Levi's501 Original jean to favorite fits and styles in our Red Tab and Levi's Premium collections. 35 | P a g e

DOCKERS
Launched in 1986 in the United States, Dockers brand products and marketing played a major role in the creation of a new apparel category for men's pants and the shift to casual clothing in the workplace. Dockers Khakisquickly became the No. 1 khaki pant brand in the United States . 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

LEVIS STRAUSS 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 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.

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PRODUCT ATTRIBUTES
Products are usually considered to be the No.1 factor contributing towards building goodwill of a firm. A product should be unique, durable, reliable, comfortable and economical. Following are some of the basic attributes of LS&CO.S products

Variety Features Design Color Size

VARIETY
Levis products today are perceived by many as a symbol of youth, freedom, confidence, individualism, independence & comfort. LS & CO. provides a wide variety of products including :

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JEANS
Levis jeans have been present at nearly every pivotal moment in history and culture for the past 150 years.

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SHIRTS

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COTTON PANTS

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ACCESSORIES

Be lts

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Sunglasses

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Wallets

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Ladies Bags

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Jackets

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Shoes
Business Casual shoes and Casual shoes are offered by Dockers both for men and for women.

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FEATURES:
Features are competitive tools that differentiate the companys products from its competitors products. Following are some of the main and distinctive features of Levis products.

Comfort
Levis jeans and other products are comfortable enough to be worn even at the times of protest, war, cultural revolution, relative peace and pure fun.

Durability
The two figures on the patch of Levis jeans with whips in hand pulling in opposite directions, yet the jeans remain intact; symbolize the strength and durability of the Patent riveted clothing.

Style
Clothing means more than just fabric, thread and rivets. To clothe oneself means to put on something that symbolizes who you are. Levis jeans are available in different styles for men and women.

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LEVIS PORTFOLIO ANALYSIS

Levis corporate strategy involves a number of businesses, so managers can manage this collection or portfolio of businesses by using a corporate portfolio matrix. BCG Matrix A strategy tool that guides resource allocation decisions on the basis of market share and growth rate of SBUs. Boston Consulting Group introduced the idea of BCG matrix that an organizations businesses could be evaluated and plotted using a 2*2 matrix to identify which ones offered high potential and which ones were a drain on organizational resources. Horizontal Axis: The horizontal axis represents market share which is evaluated as low or high. Vertical Axis: The vertical axis indicates anticipated market growth which is also evaluated as low or high.

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CATEGORIES Based on its evaluation, the LS & CO.s businesses are placed in the following:. STARS (High Growth, High Market Share) Stars include the businesses which are in a fast growing market and hold a dominant share of that market. Dockers come under the head of stars as it is the major source of income for the company. CASH COWS (Low Growth, High Market Share) Businesses in this category generate large amounts of cash, but their prospects for furure growth are limited. The women apparels has got a low growth and high market share so it comes under the Cash Cows head QUESTION MARKS(High Growth, Low Market Share) These businesses are in an attractive industry but hold a small market share percentage. Levis jeans come under the head of question marks with respect to Pakistan.

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PRICE

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PRICE

It can be simply defined as: The currency value charged to a Client by the company for a product or service. Is one of the most important elements of the marketing mix, as it is the only mix, which generates a turnover for the organization. The remaining 3p's are the variable cost for the organization. It costs to produce and design a product, it costs to distribute a product and costs to promote it.

List Price:
Our all products are sold at listed price, which are settled by the Levis Company (Singapore). There is no discount to offer.

Credit Sales:
We also deal with credit sales, but we dont overcharges to the customers, we pay it our self to the bank (3 %). Products are only sold for cash or on credit cards

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Discount:
We dont give the discount to our customers, even to the employees of the Levis. Our prices are fixed.

Payment Period & Credit Terms:

Payment Period & Credit Terms are settled by the company.

Price Determination:
During the determination of the price company not considered the competitors, but the standard that is used is considered Our price is influenced by the following factors:Cost of the product Affordable for the target market Demand of the product Uniqueness and innovative features of the products

Competitors:
We are much proud to say with surety that our products completely satisfy our consumers, thats why we dont face much competition in our business. But yet there are some competitors e.g.

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Pepe Jeans Leeds (US Apparels) GAAP Jeans Cambridge Our prices are not influenced by the competitors. Such a stuff, design and fashion which dont have the enough sales are recall back to the company. Again company issues this stuff to their own outlets for sale at discount prices at 14 August.

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PLACE

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PLACE
Placement objectives
To equalize the demand and 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.

Channels
Channels of Distribution: LEVIS distributes JEANS by the Channel Members that is through retailer and wholesalers. Retailers: HKB: Defence, Liberty Market , Mall Market Raja Sahib, Link Road Pace, Gulberg Sheikh Innayat Ullah, Anarkali

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Strategy
Levis Strategy for Choosing channels is according to Product: Mostly Levis is limited to his wholesalers, because the unit value is high and cost related issues occur.

Location
As mentioned earlier the Levi's brand of products are sold in 49 countries, Dockers brand in 31 countries and our Levi Strauss Signature brand in 4 countries:

Countires
These countries are Australia, Bangladesh, Brunei, China, Guam, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Sri Lanka, Taiwan , Thailand. Bahrain, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates Angola, Botswana, Mozambique, Namibia , South Africa. Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela.

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Pakistan
In Pakistan it operates in the following cities:Lahore, Fasilabad, Islamabad, Karachi, Multan, Peshawar, Rawal pindi and Sialkot. In Pakistan there are total 24 outlets. 10 in Lahore, 1 in Faisalabad, 1 in Islamabad, 7 in Karachi ,1 in multan,2 in Peshawar, 1 in Rawal pindi and 1 in Sialkot.

1. Lahore outlets 2. Faisalabad outlets 3. Islamabad outlets 4. Karachi outlets 5. Multan outlets 6. Peshawar outlets 7. Rawalpindi outlets 8. Sialkot outlets

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STRATEGIES
LS & CO. placed its products according to following strategies.Placing according to Class and Attributes: LS & CO. Positioned its products according to different classes and genders.

Placing according to Competitors

LS & CO. Keep in mind the price and quality of the products and try to make its products better.

Placing according to Price and Quality

LS & CO. introduces best quality at different prices to its clients. Placing according to Technology:LS & CO. has tried to build its image as an innovator by coming in Pakistan with their Jeans having new and latest style and look

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PROMOTION

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PROMOTION
In Pakistan Levis has not aggressively promoted its products because it is confident about its global brand image. That is why billboard and TV adverts in Pakistan are not visible to us. However it does use certain methods of promotion.

Advertising

Sales Promotions

Promotion objectives
To inform, persuade and remind the potential customers about its products Increase awareness and build primary demand To build strong brand equity. Build Companys image as innovator. To create bonds between public and Levi Strauss by helping the people. To create the importance of its products

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Sales promotion
For the promotion of sales Levi Strauss & Co. adopt a very effective but comprehensive strategy. Levis pays attention to the publicity of its products. The major source of promotion of levis is done by creating public relations. The sales promotion of LEVIS targets the end consumers. Since the Levis JEANS are in growth stage in Pakistan, therefore, the promotional strategy is based on persuading of prospective buyers. Levis uses the following promotional strategies to promote its product. Personal selling Personal selling by the representative of the organization takes place face to face with final consumers. Mass Selling Levis does mass selling to inform a bulk of persons by advertising.

Advertising
The type of advertising used by LEVIS.

Competitive advertising
The advertising done by the LEVIS stresses on the product and enhancement of its features.

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Institutional advertising
Levis uses institutional advertising to promote companys image by saying Many Copy the Red Tab No One can copy the Origina

Advertising mediums
The advertising media used by the company are Television Fashion Magazines , Newspapers Internet. Bill boards ,banners etc

Television & Radio

Advertisements of Levi Strauss & Co. are very innovative and eye-catching. Buyers are attracted towards the product. The advertisements are placed at the international level.

Fashion Magazines & Newspapers

For fashion magazines and newspapers LS&Co. is a target due to its grand brand equity ,it has become a benchmark for all the others to follow. The newspaper gives a coverage to the social events in which LS &Co takes part with great interest. Whereas fashion magazines are always dealing with the gorgeous models working with LS& Co and the unique outfits of the models

Internet
Levis provides up-to-date information to their customers through electronic media i.e. from their websit

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Billboards & banners

Billboards and banners are also used for the advertisement purpose.

Sales force
Levis holds a very big sales department as it is working in many countries. Level of Distribution Intensity: Levis is using selective but intensive distribution level for the distribution of its products . For example in Pakistan Levis has opened its outlets, sales offices and sales branches in major cities like Lahore, Islamabad and Karachi. Sales Offices and Sales Branches: Sales offices for Levis act as a display center for their Products from where the customers can get information about latest designs and up to date fashion introduced. While the actual sale of the products take place at the sales outlet of the company.

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Public relations
The sales promotion of LEVIS also includes such activities as event sponsorship. Levi Strauss & Co. says , Our corporate values enable our vision of the future and reflect the legacy of our founder, Levi Strauss, who devoted substantial time and resources to charitable and philanthropic activities. Some of these events promoting the image of Levis are as follows: Events and Experiences The purpose of events and experiences is to increase awareness of its brand.levis in this aspect has used entertainment sector extensively byarranging concerts and other musical events organized by music channels. Sponsorships Levis focuses on promoting highly regarded causes e.g. fight against Aids, campaign for Sawat people and many more.

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Happenings

Now- a-days for promotion following offers are present for the customers. 1) For every purchase of Rs. 3000/ on the new brand 5 the customers get a coupon. And customers can win a new LG air conditioner. 2) 501 Scarred What's your story? The best story wins an iPod. 3) Levi's Lady Style Get a Swarovski designer tattoo with every purchase of "Levi's Lady Style" 4) Father's Day Purchase Dockers Product worth Rs.2000 and above to get a branded Dockers Cap

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Tools used by Levi Srauss & Co. for measuring Customer Satisfaction

We use different tools for measuring the customer satisfaction e.g.

We conduct different surveys just to know the views of our consumers. We have a very quick complaint system We ask our consumers for new ideas and their needs

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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.

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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. 68 | P a g e

CUSTOMER BASED BRAND EQUITY

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CUSTOMER BASED BRAND EQUITY

Brand Awareness and Usage
By looking at the brand awareness and usage we come to know that when it comes to upscale, youthful, original and high quality clothing although 82% of the respondents said its Levis but various respondents also associated crossroads, stoneage and few other brands with the following traits. The percentage of such responses is not that high but it shows that Levis faces some competition which their management thinks is indirect. 100% of the respondents said they have heard about the brand which shows very high brand awareness and 86% are its customers which is a very positive sign for brand usage. Levis associates itself with various traits such as youthful, original, sexy, brave, loud, in vogue and ruggedness. These traits can be further reinforced by the management through more promotions in the minds of consumers.

What brands of upscale, youthful, original and high quality casual clothing are you aware of?

100.00% 80.00% 60.00% 40.00% 20.00% 0.00%

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At which brands of upscale, youthful, original and high quality casual clothing would you consider shopping?

80.00% 60.00% 40.00% 20.00% 0.00%

Levi's
Stoneage Cross Roads Next Outfitters Other

Are you customer of Levis?

Yes 14% No

86%

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When I say Levis, what are the first associations that come to your mind?

80.00% 60.00% 40.00% 20.00% 0.00% Youthfull Original Sexy Brave Loud En vouge Rugged

Youthfull
Original Sexy Brave Loud

En vouge

Have you ever heard about this brand ?

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Brand Judgments
Almost 78% respondents have a highly favorable plus favorable attitude towards the brand. Almost a similar number of respondent thinks that the brand well satisfies plus satisfies their needs. Almost 84% of the respondents believe that they will highly recommend or recommend the brand which shows high customer equity towards the brand a positive sign for Levis. Almost 52% believe that the high prices of Levis are worth it in some way and 62% believes it is superior to its competitors. A high percentage believes that Levis is innovative and likeable but not many believes it is concerned about its customers where as Levis is. Levis can further enforce such differences through its advertisements.

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Brand Performance
When it comes to brand performance a very high percentage of consumers believe that Levis offers high quality, attractive and youthful clothing. Many respondents also believe that Levis has clean outlets. On the other hand not many respondents believe that Levis offers high variety and has a high sense of corporate social responsibility where as Levis is always contributing to the society. Promotions can enforce this points and Levis management should take notice of its variety as it is known for its wide range of designs

1 = is convenient to go 2 = has clear outlets 3 = offers a large variety 4 = quickly responds to changing fashions 5 = has friendly courteous sales staff 6 = offers high quality clothing 7 = offers valuable promotions 8 = offers stylish attractive and youthful cloths 9 = has a high sense of corporate responsibility

90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00%

Levis......

1 2 3 4 5 6 7 8 9

20.00%
10.00% 0.00%

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Brand Imagery
It shows that many respondents like people who are customers of Levis which actually enhance a sense of community. Almost more than 50 respondents believe that they grew up with Levis and Levis brings pleasant memories to their minds, this is a clear evidence of the long, glorious history of Levis as a brand which has always been there to give the most original, stylish and youthful clothing to its customers.

To what extent you admire and respect people who shop at Levis?

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Brand Feelings
A high percentage of people believe that Levis promotes a feeling of social approval and excitement. This shows the superior image of Levis which they have built over the year which is a source of social approval to its customers. The rugged, brave and loud nature of the brand also promotes excitement among its consumers. Few respondents also highlighted that Levis promotes warmth, fun and sense of security.

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Brand Resonance
Almost 84% of the respondents feel resonance with Levis in one way or the other. This is a very high percentage and a positive sign for Levis because it shows a high equity among consumers. Levis can further enforce and strengthen this equity by working more on its promotions, enforcing the factors which they think is important and that the consumers need to be reminded about them.

50.00% 1 45.00% 40.00% 2 3 4 5 6 30.00% Axis Title 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

1 = loyal to levis 2 = buy levis whenever I can 3 = go out of way to shop at levis 4 = really love levis 5 = really love levis if it went away 6 = Levis is special to me 7 = I identify with people who buy from levis 8 = Levi is more than a product for me 9 = feel deep connection with levis buyers 10 = like to talk about levis to others 11 = interested in learning more about levis 12 = interested in merchandise with levis name on it 13 = proud to have others know I buy from levis 14 = like to visit of website of levis 15 = I follow news about levis closely 16 = I do not feel resonance

35.00%

7
8 9 10 11

12
13 14 15 16

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Demographics
The demographics show that major target market of Levis is youth of ages 20 to 30 but this doesnt mean Levis is restricted only to youth as people of ages 30 and above are also its customers. The income of almost all the respondents is between 50,000 to 70,000 which clearly gives an indication that the target market of Levis is mainly upper and upper middle class.

Gender
Male Female Below 20

Age
20-30 4% 30-40 40 and above

Income
Below 50000 70000-100000 50000-70000 Above 100000

36% 64%

12%

18% 42%

2% 14% 42%

66%

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COMPETITIVE REVIEW
International Competition
After the dominance of Levis in the jeans markets from late eighties to early ninetys, the company was threatened by competition because barriers to entry were relatively low (except for the patients). Some of Levis direct competitors include Calvin Klein Gap Jeans VF Corp (Lee, Wrangler) Tommy Hilfiger

The entrance of new competitors had many effects on Levis such as Levis no longer has monopoly power. They are forced to have more competitive prices leading to lower profits. Availability of substitutes Availability of substitutes, firm faces increase in elasticity of demand Consumers prefer other brands. Levis customers buy from competition lowering Levis market share

These newer upstarts are able to chip away at Levis market dominance because they are able to capture segments.

VF Corp captures low-end jean consumers; Calvin Klein captures high end jean consumers; whereas Levis has been focusing on its product more than its consumers.

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Competition Strategies
Competitors successfully are able to take from Levis market dueto heavy advertising and branding. Branding is especially effective for companies like Calvin Klein that targeted high-end consumers. Some of the marketing strategies that competitors like Calvin Klein are using to differentiate their product and brand include: Celebrity endorsements (Calvin Klein and Brooke Shields). Up-to-date European product designs (low-rise, tighter). Advertise jeans as designer jeans.

These advertisements were used as a barrier to entry, because of superior product differentiation. Although Levis jeans may be physically the same as its competitors, consumer preferences are affected by brand name.

Local Competition
After conducting a detailed interview with the marketing and brand manager at Levis Pakistan, it was very clear that Levis do not consider any other company as its direct competitor. The officials told us that the niche that they are targeting in Pakistan is not affected by marketing or branding efforts of any other brand and the premium quality and originality that their brand was offering was unmatchable by any other brand. However, the managers acknowledged that there are two main competitors in the local market naming the NEXT and the Stoneage Jeans Company. We were amazed to know that Levis does not monitor any of its direct or indirect competitors activities.

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Image, Message and Product Comparison

The objective of all the messages communicated by Levis through its marketing communications is to set a mark of Originality, youthfulness, loudness, bravery, independence, self-reliance and self-confidence in the consumers mind. These associations are implicitly communicated in the communication mediums used by Levis. The products, mainly denim produced by Levis is of the highest quality and is manufactured by exclusive vendors with the state of the art procedures and machinery.

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CONCLUSION & RECOMMENDATIONS

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Conclusion & Recommendations

Levis with its 150 years of history has become one of the most recognizable brands in the world. Their product is top quality, their marketing is innovative and their branding is powerful. In spite of fearsome competitive environment, Levis Customers are loyal and feel resonance towards the brand. However, the brand is not acting to its full potential in Pakistan. There are numerous segments that are still ignored and that can be potential customers for the company. After conducting an extensive primary research, we the group came up with the following recommendations for the brand.

1. They should adopt complementing and diverse forms of marketing communication channels and not just the billboards and murals. 2. In-Store advertising should be complemented with outdoor advertising.

3. Corporate sponsorships can really help them make their brand image stronger and get to the local customer better. 4. Levis needs to have a brand ambassador like every successful high fashion garment producer.

5. Levis should initiate some local campaigns besides the international ones to enhance loyalty among local market. 6. Levis should take special care about the timing of its clothing and introduce new products at the same time in Pakistan as they are introduced abroad.

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7. They should offer more variety in sizes of its products and should keep comparatively large quantities of them in order to avoid consumer inconveniences

8. As Levis has introduced various medium priced products they should market them on a broader scale in order to make even the price sensitive consumers aware of them which will further increase their customer base. 9. Levis needs to have a separate brand ambassador for Pakistan rather than relying completely on international celebrities for the endorsement of their clothing.

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References

Interview conducted with Levis Management; (Zaid Malik and Usman Khan, Brand Managers). June 1, 2010 Levi-strauss-co, (2009), Answers online. Retrieved May 28, 2010 from http://www.answers.com/topic/levi-strauss-co Marketing Levis , (2009), SCRIBD Online. Retrieved May 29, 2010 from http://www.scribd.com/doc/19236242/Marketing-Levis Company-Values and Vision, (2010), Levi Strauss & Co. Retrieved June 9, 2010 from http://www.levistrauss.com/Company/ValuesAndVision.aspx Company Fact Sheet, (2009), Levi Strauss & Co. Retrieved June 2, 2010 from www.levistrauss.com/Downloads/CompanyFactSheet.pdf Lesson-Promotion, (2009), Marketing Teacher Online. Retrieved June 3, 2010 from http://www.marketingteacher.com/Lessons/lesson_promotion.htm Advertising, (2009), Wikipedia The Free Encyclopedia Online. Retrieved June 3, 2010 from http://en.wikipedia.org/wiki/Advertising Levi's For Men, Panatela Slacks Vintage Store Sign, (2009), Midwest Estate Buyers Online. Retrieved October 4, 2009 from http://www.mebstore.com/items/item_display.aspx?iid=51974

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