anjalicutek
Anjali Khurana
Marketing Mix of Levi Strauss & Co : Levi Strauss & Co. (LS&CO) is a privately held clothing company known worldwide for its Levi's brand of denim jeans. It was founded in 1853 when Levi Strauss came from Buttenheim, Franconia, (Kingdom of Bavaria) to San Francisco, California to open a west coast branch of his brothers' New York dry goods business. Although the company began producing denim overalls in the 1870s, modern jeans were not produced until the 1920s. The company briefly experimented (in the 1970s) with employee ownership and a public stock listing, but remains owned and controlled by descendants and relatives of Levi Strauss' four nephews.
Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions: Levi Strauss Americas (LSA), based in the San Francisco headquarters; Levi Strauss Europe, Middle East and Africa (LSEMA), 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.[2]
From the early 1960s through the mid 1970s, Levi Strauss experienced explosive growth in its business as the more casual look of the 1960s and 1970s 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 stone-washed jeans through the acquisition of Great Western Garment Co. (GWG), a Canadian clothing manufacturer. GWG was responsible for the introduction of the modern "stone washing" technique, still in use by Levi Strauss.
Mr. Simpkins is credited with the company's record paced expansion of its manufacturing capacity from fewer than 16 plants to more than 63 plants in the United States from 1964 through 1974. Perhaps most impressive, however, was Levi's expansion under Simpkins was accomplished without a single unionized employee as a result of Levi's' and the Haas families' strong stance on human rights and Simpkins' use of "pay for performance" manufacturing at the sewing machine operator level up. As a result, Levi's' plants were perhaps the highest performing, best organized and cleanest textile facilities of their time. Levi's even piped in massive amounts of air conditioning for the comfort of Levi's workers into its press plants, which were known in the industry to be notoriously hot.
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.
Marketing
mix
Product Place
Product variety Channels
Quality Coverage
Design Assortments
Features Locations
Brand name Inventory
Packaging Transport
Sizes Prices Promotion
Services
Warranties List price Sales promotion
Returns Discounts Advertising
Allowances Sales force
Payment period Public relations
Credit terms Direct marketing
PRODUCT:
“Product means set of tangible and intangible attributes which may include packaging, color, price, quality and
brand plus the seller’s 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 world’s largest quality products.
Target
market
LS & CO. is basically divided into 3 sub brands i.e. Levi’s, Dockers and Levis Strauss Signature. All the three
brands are providing different quality products.
LEVI’S®
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 Levi’s brand continues to define jeans
wear with widest range of products available from quintessential classics,
such as the famous Levi's®501® Original jean to favorite fits and styles in
our Red Tab™ and Levi's® Premium collections.
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.
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
Levi’s 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 :
JEANS
Levi’s jeans have been present at nearly every pivotal moment in history and culture for the past 150 years.
Features are competitive tools that differentiate the company’s products from its competitor’s products.
Following are some of the main and distinctive features of Levi’s products.
Comfort
Levi’s jeans and other products are comfortable enough to be worn even at the times of protest, war,
cultural revolution, relative peace and pure fun.
Durabilit y
The two figures on the patch of Levi’s 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. Levi’s
jeans are available in different styles for men and women.
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 don’t
overcharges to the customers, we pay it our self to the bank (3 %).
Products are only sold for cash or on credit cards
Discount:
We don’t 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, that’s why we
don’t face much competition in our business. But yet there are some competitors e.g.
Pepe Jeans
Leeds (US Apparels)
GAAP Jeans
Cambridge
· Our prices are not influenced by the competitors.
· Such a stuff, design and fashion which don’t 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.
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
Strategy:
Levi’s 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.
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 with their Jeans having new and latest style and look
PROMOTION:
Promotion objectives:
o To inform, persuade and remind the potential customers about its products
o Increase awareness and build primary demand
o To build strong brand equity.
o Build Company’s image as innovator.
o To create bonds between public and Levi Strauss by helping the people.
o To create the importance of its products
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 levi’s is done by creating public
relations. The sales promotion of LEVIS
targets the end consumers. Since the Levi’s
JEANS are in growth stage in Pakistan,
therefore, the promotional strategy is based on
persuading of prospective buyers.
Levi’s 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 advertisement given by the LEVIS stresses on the demand of the product and enhancement of its features.
Institutional advertising
Levis uses institutional advertising to promote company’s 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
Billboards & banners:-
Billboards and banners are also used for the advertisement purpose.
Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions: Levi Strauss Americas (LSA), based in the San Francisco headquarters; Levi Strauss Europe, Middle East and Africa (LSEMA), 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.[2]
From the early 1960s through the mid 1970s, Levi Strauss experienced explosive growth in its business as the more casual look of the 1960s and 1970s 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 stone-washed jeans through the acquisition of Great Western Garment Co. (GWG), a Canadian clothing manufacturer. GWG was responsible for the introduction of the modern "stone washing" technique, still in use by Levi Strauss.
Mr. Simpkins is credited with the company's record paced expansion of its manufacturing capacity from fewer than 16 plants to more than 63 plants in the United States from 1964 through 1974. Perhaps most impressive, however, was Levi's expansion under Simpkins was accomplished without a single unionized employee as a result of Levi's' and the Haas families' strong stance on human rights and Simpkins' use of "pay for performance" manufacturing at the sewing machine operator level up. As a result, Levi's' plants were perhaps the highest performing, best organized and cleanest textile facilities of their time. Levi's even piped in massive amounts of air conditioning for the comfort of Levi's workers into its press plants, which were known in the industry to be notoriously hot.
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.
Marketing
mix
Product Place
Product variety Channels
Quality Coverage
Design Assortments
Features Locations
Brand name Inventory
Packaging Transport
Sizes Prices Promotion
Services
Warranties List price Sales promotion
Returns Discounts Advertising
Allowances Sales force
Payment period Public relations
Credit terms Direct marketing
PRODUCT:
“Product means set of tangible and intangible attributes which may include packaging, color, price, quality and
brand plus the seller’s 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 world’s largest quality products.
Target
market
LS & CO. is basically divided into 3 sub brands i.e. Levi’s, Dockers and Levis Strauss Signature. All the three
brands are providing different quality products.
LEVI’S®
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 Levi’s brand continues to define jeans
wear with widest range of products available from quintessential classics,
such as the famous Levi's®501® Original jean to favorite fits and styles in
our Red Tab™ and Levi's® Premium collections.
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.
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
Levi’s 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 :
JEANS
Levi’s jeans have been present at nearly every pivotal moment in history and culture for the past 150 years.
Features are competitive tools that differentiate the company’s products from its competitor’s products.
Following are some of the main and distinctive features of Levi’s products.
Comfort
Levi’s jeans and other products are comfortable enough to be worn even at the times of protest, war,
cultural revolution, relative peace and pure fun.
Durabilit y
The two figures on the patch of Levi’s 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. Levi’s
jeans are available in different styles for men and women.
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 don’t
overcharges to the customers, we pay it our self to the bank (3 %).
Products are only sold for cash or on credit cards
Discount:
We don’t 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, that’s why we
don’t face much competition in our business. But yet there are some competitors e.g.
Pepe Jeans
Leeds (US Apparels)
GAAP Jeans
Cambridge
· Our prices are not influenced by the competitors.
· Such a stuff, design and fashion which don’t 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.
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
Strategy:
Levi’s 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.
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 with their Jeans having new and latest style and look
PROMOTION:
Promotion objectives:
o To inform, persuade and remind the potential customers about its products
o Increase awareness and build primary demand
o To build strong brand equity.
o Build Company’s image as innovator.
o To create bonds between public and Levi Strauss by helping the people.
o To create the importance of its products
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 levi’s is done by creating public
relations. The sales promotion of LEVIS
targets the end consumers. Since the Levi’s
JEANS are in growth stage in Pakistan,
therefore, the promotional strategy is based on
persuading of prospective buyers.
Levi’s 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 advertisement given by the LEVIS stresses on the demand of the product and enhancement of its features.
Institutional advertising
Levis uses institutional advertising to promote company’s 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
Billboards & banners:-
Billboards and banners are also used for the advertisement purpose.
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