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LEVI'S Strauss & Co.

Marketing Audit
by

Afra Al-Khazraji

on 10 June 2013

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Transcript of LEVI'S Strauss & Co.

Environmental Context Analysis Environmental Context Analysis Environmental Context Analysis Environmental Context Analysis Economic Environment Environmental Context Analysis Environmental Context Analysis Introduction Content Done by:
Shaima Al-Nabooda 201113507
Noora Faisal 201107509
Afra Majed 201113756
Ghada Al-Muttawa 201115486
Shaikha Al-Zarooni 200921225
Dana Samir 201107229 Levi's Strauss & Co. Natural Environment Technological Environment Political & Legal Environment Socio-cultural Environment Demographic Environment - Introduction
- Environmental Context Analysis
- Competitor Analysis
- SWOT Analysis
- Market Research
- Customer Analysis
- Segmentation and Targeting
- Positioning Strategy
- Product Strategy
- Pricing Strategy
- Distribution Strategy
- Promotion Strategy
- Customer Service and Relationship Activities
- Conclusion sa`` The main demographic forces are
- Population
- Growth rate
- Age distribution
- Ethnic mix
- Educational levels
- Appeals to the mature generations that are not necessarily looking for a fashion statement. - Different levels of income affect
the price charged and the quality of the
product.

- Prices vary between markets

- ie a standard Levi’s jean is
sold for 46 Euros in the UK but
for 26 Euros in the US It includes :
- Language
- Ethics
- Values
- Religion
- Customer perceptions The political and legal environment include:

- Laws

- Government agencies

- Pressure groups that limit organizations and individuals. 1- Censorship

2- Legal Constraints Competitor Analysis Levi’s Competitors Competitor Analysis Indirect competition is a major cause of
decrease in sales is the rise of Sears and
JC penny stare brand name jeans.


These brands provide the same basic
product: jeans for a much cheaper
and affordable pricing. Effects of Competition 1) Levi’s no longer having monopoly power in the jeans market.

2) lowering Levi’s jeans future profit.

3) Levi’s consumers started buying from competitors, which lowered Levi’s market share.

4) Levi’s competitors successfully started grabbing Levi’s market due to heavy advertisements and successful marketing strategies. Competitor Analysis Swot Analysis Definition

Why is it important? SWOT Analysis Strengths Weaknesses Opportunities Threats Market Research 1)Research Problem Statement

2)Recommendation for research:

Initiate a focus group

Survey

Interview
- create an application > qualitative research Environmental Context Analysis - Censorship

- Legal Constraints Competitor Analysis SWOT Analysis Market Research Customer Analysis Customer Analysis Needs Analysis Uniqueness Confidence Fashionable & Trendy Customer Analysis Decision Making Process Analysis Example 1 Internal stimulus

Personal/commercial sources

Consumer & buying situation

Purchase action

Expectation & performance Customer Analysis Decision Making Process Analysis Example 2 External Stimulus

Personal/ commercial sources

Consumer & buying situation

Purchase action

Expectation & performance Segmentation & Targeting Demographic segmentation Geographic segmentation Levi’s America

Levi’s Europe

Levi’s Asia Psychographic Segmentation Based on lifestyle:

The Levi’s Brand


The Dockers Target Market Upper class

Upper- middle class Psychographic Segmentation Signature by Levis Strauss




dENZIEN Positioning Strategy - Levi’s jeans created a positioned
and differentiated itself from other
competing products in the market.

- After the world war has ended,
the employees still wore the
company’s jeans to their colleges
and work. - Companies competed in prices with Levi’s, which led to Levi’s lower profiting.

- Oddly cut jeans and nylon pants that unzip into shorts were introduced. The company changes its position according to consumers’ demands and the changing times - The original fit jeans are simple and made-up of 100% cotton.
- Other styles include slim fit, slim straight, and straight fit
- Levi’s jeans expanded its fashion designs in men, women, and kids apparels.
- Cotton is gathered from plants and transported to texture mills. Product Strategy - The finished products are transported to the stores

- Products are marketed through commercials to appeal to different age groups.

- The products are considered the world’s highest quality, affordable, and fashionable products. - The after-sales services of the product include: tracking the order, sending a gift, or making a return.

- Delivery costs can be seen during the ordering process

- The product lines include: shirts, cotton pants, accessories and shoes.

- Straight pants come in different versions, such as ivy green, blue green, and harvest gold Caring about sustainability is one of the new product
developments in the company, as resources are becoming scarce and prices of cotton are increasing. Pricing Strategy All products are sold at listed price

NO discount to offer

Products price is influenced by:
- Cost of the product
- Affordable for the target market
- Demand of the product
- Uniqueness and innovative features of the product Levi’s has different products ranges for different factors
The pricing strategy can be called both penetration as well as market growth pricing.
The brand was trying to skim the market but at the cost of market share and volume
Levi’s India planned to leave the middle price and plans to focus on the lower and higher end. To keep the profit the company:

- released the Levi’s signature jeans

- developed new labeling and styles. Distribution Strategy - distributes by the channel member.
- uses selective but intensive distribution level
- is opened around 500 outlets in India Promotion Strategy Combination of push and pull
Levi used the digital channels to
promote their ads video Promotional & Advertising Strategy Standardization Adaptation Customer Service & Relationship Activities Conclusion 4 trends in technology:

- Accelerating pace of change

- Unlimited opportunities for innovation

- Focus on the research and development

- Increased regulation of technological change Environmental Context Analysis Socio-cultural Environment Similar Cultural Tastes

- Females living in Islamic
countries ->discouraged to
wear clothes that are
revealing and tight fitting.

- The Japanese -> prefer tighter
fitting jeans Environmental Context Analysis Political & Legal Environment Climate conditions affect the demand for jeans!

The European climate requires standard Levi’s denim jeans.

Hotter climates in Asia and the Middle East require thinner jeans with lighter color suitable for the heat and in shorter lengths. Some of Levi’s major competitors include: Indirect Competition Competitor Analysis Effects of Competition Levi’s competitors successfully started grabbing Levi’s market due to
heavy advertisements and
successful marketing strategies.

Branding was especially
effective for companies like
Calvin Klein since they
targeted high-end consumers. Competitor Analysis Competitive Advantage Pricing

Levi’s signature jeans which appealed to the low-end consumers.

Collaborating with the largest retailer Wal-Mart as a supply chain strategy to mass-market consumers. Segementation & Targeting Gender :
Males and Females Age:
infants, children, teenagers,
and adults Income:
high-income people
middle-income people Occupation:
students, professionals,
businessmen, and
women Segmentation & Targeting Segmentation & Targeting Segmentation & Targeting Segmentation & Targeting Positioning Strategy Positioning Strategy Positioning Strategy Positioning Strategy Product Strategy Product Strategy Product Strategy Product Strategy Pricing Strategy Pricing Strategy Pricing Strategy Distribution Strategy Promotion and Advertising Strategy Promotion and Adverstising Strategy Promotional Strategy Personal Selling Mass Selling Target
Audience Customer Analysis and Relationship Activities Promotion Strategy Advertising through: Promotion Strategy It developed a rise in the level of differentiation
which contributed to its market power

Advertising context

Brand image Positioning of Levis Jeans “To stay in touch and interact” Environmental Context Analysis Technological Environment - is changing all product, price, promotion and place. Products such as jeans in the United States had a wider fifth pocket to hold a pager device. Customer Analysis and Relationship Activities The Lop Program! Postion : 4 companies with products -distributed to 110 countries worldwide.
1853 - Levi Strauss > San Fransicso
whole sale dry goods business > durable blue jeans
support of copper rivets for American workers
1973 - first blue jean for women
Monpoly > largest manufacturer of jeans market
21st centuary – developing an advantage competency launched Eco-clothing line (2006)

Jeans > 100% organic
packaging (recycled paper)

Tag > educate consumers on reducing environmental footprint

Water<Less Collection (2011); uses 96% less water in the finishing process
saved 172million lits or water since its launch (Levi Strauss & Co, 2012).

Commuter series After the Downturn History
Full transcript