Levi Strauss & Co

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. The core Levi's was founded in
1873 in San Francisco, specializing in riveted denim jeans and different lines of casual and street
fashion.
From the early 1960s through the mid-1970s, Levi Strauss experienced explosive growth in its
business as the more casual look of the 1960s and 1970s ushered in the "blue jeans craze" and served
as a catalyst for the brand. Levi's, under the leadership of Walter Haas Jr., Peter Haas, Ed Combs,
and Mel Bacharach, 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, and introducing Permanent Press trousers under the Starkest name. The
company experienced rapid expansion of its manufacturing capacity from fewer than 16 plants to
more than 63 plants in the United States from 1964 to 1974 and 25 overseas. Levi's' factory
expansion was accomplished without a single unionized employee. The 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 air
conditioning for the comfort of Levi's workers into its press plants, which were known in the industry
to be notoriously hot.2004 saw a sharp decline of GWG in the face of global outsourcing, so the
company was closed and the Edmonton manufacturing plant shut down.[4] The Dockers brand,
launched in 1986[5] which is sold largely through department store chains, helped the company grow
through the mid-1990s, as denim sales began to fade. Dockers were introduced into Europe in 1993.
Levi Strauss attempted to sell the Dockers division in 2004 to relieve part of the company's $2 billion
outstanding debt. Launched in 2003, Levi Strauss Signature features Jeanswear and casualwear. In
November 2007, Levi's released a mobile phone in co-operation with ModeLabs. Many of the
cosmetic attributes are customizable at the point of purchase. During the launch of Levi's Curve ID
jeans, Levi launched a 5 week integrated marketing campaign.

SWOT Analysis:
Bases on the Levis Strauss unique resources and capabilities as to be the first mover in the industry and one of the
ten top US recognized brand name has continue developing new products (as the Jacket with MP3) and looking after
new markets this will allow to adapt to the fast consumers taste changes and to move away from the saturation of the
jeans market.

Strengths:

History
Pioneer in Jeans
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.
Diversity
The products are renowned and are considered as the most durable i.e. the long lasting products.
Levis follows a high standard of quality.
Expertise in jeans industry
Finance and access to international markets
Its highly expertise and intelligent management
Distribution channels and Global sourcing

Weaknesses:

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.
Lack of control on distribution decisions ( Retailers pressure to stop selling on web)

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.
Low manufacturing and production cost in various international markets like Pakistan and Bangladesh.

Threats:

Saturation of jeans market.

Local competitors in expanded markets
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.
Fast change in the consumer taste.
Economic downfall in many countries like Pakistan.

Marketing Mix
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.
1. LEVIS The Levis brand epitomizes classic American style and effortless cool and is positioned as the
original and definitive jeans brand. Since their inception in 1873, Levis jeans have become one of the
most recognizable garments in the world reflecting the aspirations and earning the loyalty of people
for generations.
Consumers around the world instantly recognize the distinctive traits of Levis jeans the double
arc of stitching, known as the Arcuate Stitching Design, and the red Tab Device, a fabric tab stitched
into the back right pocket. Today, the Levis brand continues to evolve, driven by its distinctive
pioneering and innovative spirit. Our range of leading Jeanswear and accessories for men, women
and children is available in more than 110 countries, allowing individuals around the world to
express their personal style.
The current Levis product range includes:
Levis Red Tab Products These products are the foundation of the brand. They encompass a wide
range of jeans and Jeanswear offered in a variety of fits, fabrics, finishes, styles and price points
intended to appeal to a broad spectrum of consumers. The line is anchored by the flagship 501 jean,
the original and bestselling five-pocket jean in history The Red Tab line also incorporates a full range
of Jeanswear fits and styles designed specifically for women. Sales of Red Tab products represented
the majority of our Levis brand net sales in all three of our regions in fiscal years 2009, 2008 and
2007.
Premium Products In addition to Levis Red Tab premium products available around the world,
Levis offer an expanded range of high-end products. In 2009, we consolidated the management of
our most premium Levis Jeanswear product lines under a new division based in Amsterdam. This
division will oversee the marketing and development of two global product lines: our existing Levis
Vintage Clothing line, which showcases our most premium products by offering detailed replicas of
our historical products, and Levis Made & Crafted, a recently-launched line of premium apparel.
Levis brand products accounted for approximately 79%, 76% and 73% of our total net sales in fiscal
2009, 2008 and 2007, respectively, approximately half of which were generated in our Americas
region.
2. DOCKERS First introduced in 1986 as an alternative between jeans and dress pants, the Dockers brand is
positioned as the khaki authority and aspires to be the worlds best and most-loved khakis.

The Dockers brand offers a full range of products rooted in the brands khaki heritage and
appropriate for a wide-range of wearing occasions. We seek to renew the appeal of the casual pant
category by dealing up khakis masculinity and swagger and reminding men what they love about the
essential khaki pant. This positioning is reflected in the Wear the Pants campaign launched
globally in December 2009.
The brand also offers a complete range of khaki-inspired styles for women with products designed to
flatter her figure and provide versatility for a wide range of wearing occasions. Our Dockers brand
products accounted for approximately 16%, 18% and 21% of our total net sales in fiscal 2009, 2008
and 2007, respectively. Although the substantial majority of these net sales were in the Americas
region, Dockers brand products are sold in more than 50 countries.
3. Levis Strauss Signature
Levis seek to extend the style, authenticity and quality for which our company is recognized to more
value conscious consumers through our Signature by Levi Strauss & Co.TM brand. Levis offer
products under this brand name through the mass retail channel in the United States and Canada and
value-oriented retailers and franchised stores in Asia Pacific. Levis use these distribution channels to
reach consumers who seek access to high-quality, affordable and fashionable Jeanswear from a
company they trust.
The product portfolio includes denim jeans, casual pants, tops and jackets in a variety of fits, fabrics
and finishes for men, women and kids. Signature by Levi Strauss&Co.TM brand products accounted
for approximately 5%, 6% and 6% of our total net sales in fiscal years 2009, 2008 and 2007,
respectively. Although a substantial majority of these sales were in the United States, Signature by
Levi Strauss & Co.TM brand products are sold in seven additional countries in our Americas and
Asia Pacific regions.

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:
Levis all products are sold at listed price, which are settled by the Company (Singapore). There is no
discount to offer.
Credit Sales:
Company also deal with credit sales, but dont overcharges to the customers, company pay it our self
to the bank (3%). Products are only sold for cash or on credit cards
Discount:
Levis dont give the discount to customers, even to the employees of the Levis. Company prices are
fixed.
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 .Companys 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
Levis products completely satisfy consumers, thats why company dont face much competition in
business. But yet there is some competitors e.g. Pepe, Lee, Wrangler, Spykar etc.

Levis 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.

Place
Placement objectives:To equalize the demand and supply of products at all places.
To provide desired products at proper place.
To fulfil 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:
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:They sell our product in 110 countries, 55000-plus retail locations and 1500 brand dedicated stores.
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, Bot
swana, Mozambique, Namibia, South Africa, Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa
Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay and
Venezuela.

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 India, therefore, the promotional
Strategy is based on persuading of prospective buyer
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 Medium
The advertising media used by the company are
Television Fashion Magazines, Newspapers Internet Bill boards, banners etc.
1. 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
2. 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 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 model
3. Levis provides up-to-date information to their customers through electronic media i.e. from their
website
4. 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.
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.
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.

Porter Five Force Analysis

Barriers to Entry
The threat of entry is some of those outlined by the S-C-P model (Barney, 41). These barriers are
economies of scale and product differentiation. The economy of scale is present in this market
because of the volume of jeans produced in the market. Entry into a market where the production
volume is so high already is not really a threat because the cost of production goes down. This means
Levis can produce more at a lower price and possibly sell for more.
This would improve the profitability of the company. Product differentiation is high because
everybody buys different jeans and each brand has different values to different people. This threat
would be brand loyalty. Levis created the first denim jeans which poses a threat to new entrants
because of their customers brand loyalty. If Levis were to enter into the high quality and high
priced market they would need to have change their style or become more fashionable in the United
States. If this were to be the case for Levis, then start-up costs would be high.
Threat of Rivalry
In the apparel industry, rivalry is moderate to high. The apparel industry is comprised of several main
rivals of equal size. When consumers establish brand loyalty, it is typically the designer (specific
brand or line of apparel) rather than the retailer. This shows that the small number of large apparel
firms that compete on a grand scale show signs of rivalry. When rival firms threaten existing firms it
reduces their economic profits. Examples of rivalry among existing apparel firms are frequent price
cutting, intense advertising campaigns, and frequent introductions of new products. Often times in
the apparel industry, celebrities and models are used to influence customers to purchase products.
The apparel industry is highly competitive and has large-scaled competitors that are global and
publicly traded. When the firms are large they have a high production capacity. According to Barney
and Hesterly, rivalry tends to be high when production capacity is added in large increments
therefore the ability for an apparel firm to be of high production capacity creates economies of scale.
Threat of Substitutes
Essentially there is no substitute for apparel or clothing. However, there are substitutes for garments.
Examples of substitutes for garments would be a short instead of a pant given the relativity of the
situation, similar price point, and comfort. The short would meet approximately the same customer
needs, but do so in different ways. In some cases the short would not satisfy the pants characteristics
if the climate was cold, but if the customers needs were to have pockets, it would satisfy them.
Another form of a substitute of apparel is consumer preference. Not every customer is the same some
might prefer pants in the summer over shorts. Customers also might substitute brand for their
preference such as fit, color, design, and price point. As long as the approximate needs of the
customer are met, substitutes play an increasingly important role in reducing profit potential in a
variety of industries.
Threat of Suppliers
Two raw materials that are crucial to the success of the apparel industry is the dependence on cotton
and labor. The apparel industrys demand for cotton is unlikely to keep pace with consumption and
the price of cotton in highly likely to rise in the future, which would increase the raw material cost
for the apparel industry.
Since the apparel industry is a global process, obtaining the highest quality labor at the lowest price
possible is difficult. It is difficult because of technological advances such as the internet. Customers
and potential customers are able to blog and research the company to find out company practices.

One topic customers desire to know is by whom it was made by, such as a child worker in a sweat
shop. Consumers are able to find out this information and pictures on the internet. These intimate
views on the supplier can threaten the performance of the firm.
Threat of Buyers
The apparel industry buyers are as limitless as the population. Every reasonable consumer is a buyer
of the apparel industry. Primarily the buyer dictates the type of product sold, often times fashion
trends in the apparel industry. Given the industry, apparel products have little differentiation.
Because there is little differentiation, the threat of buyers can be greater. Buyers have small to none
switching costs between brands or retailers. This also poses a threat to the apparel industry and
increases buyer power. The large firms in the apparel industry shouldnt concern themselves with
vertical integration, as buyers dont pose a successful or equal threat to a large apparel firm, given the
barriers of entry.

Competitive Advantage
In the short-run, the competitive advantage could be hard to find because the returns of a mass marketing
campaign will take time to show through. Good times to introduce a new line and advertise for it on a vast
scale would be before August or around the time school starts. August also shows to be a low shopping
month so it would be important to advertise the back to school AND the younger look of Levis together.
In the long-run the competitive advantage would be huge! If the marketing campaign is successful, Levis
would be one of the only clothing companies to have captured every demographic in the United States as
well as internationally. Currently, the younger generations are missing from Levis target demographic so
once they capture those ages, the growth potential is endless.
Levis already makes tough, reliable clothing that are also comfortable. They have a line that is hand
made for increased quality as well as casual business wear so they are diverse while being consistently
top of the line at an affordable price. This combination is hard to beat. Once they capture their missing
age groups they will fully dominate the casual clothing sector in the market.
If the marketing plan works the growth will prove to be sustainable because Levis will be gaining a
whole new market base They will gain loyal customers at the younger age, those of who will grow up
wearing Levis. Brand recognition is the key once this marketing plan is put into action because while the
name of Levis is already highly recognized, it needs to send a positive message to the 20 year-old that
hears it. Once that happens, they will continue shopping for Levis products for years to come.
It will be fairly easy to measure one Levis produces a new more exclusive line they will see sales or they
will lose money. They will be able to track that inventory very easily between their wholesale contracts,
online orders, and the Levis Store. With the technology in every major company these days, tracking
inventory is not typically a problem because items are scanned when received and sold so Levis will be
able to watch the exact movement of their products. Ideally, the new line will only be in a few higher
end stores, but would still be affordable so they will stick out to the shopper as a new brand at an
inexpensive rate

Competitive Analysis
Levi's jeans has many direct competitors; however, the main competitors are Wrangler, The Gap
and Faded Glory. These brands have the highest percentage of purchases among jeans buyers
(Jeans Mar. 2008). Indirect competitors include any company that sells other types of trousers
such as khakis, slacks and corduroys, as well as shorts, dresses, skirts, etc. Because all these
types of clothing serve the same purpose and basically have the same attributes besides materials
and brand name, differences between the direct and indirect competitors of Levi's can be found
through the product positioning and personality. Jeans are no longer seen as exclusively casual
but can also be worn for more formal settings therefore making khakis, slacks, skirts and dresses
indirect competition.

Survey:
Name (optional):_______________
Q#1: State the extent to which you agree with the following statement: Levis products provides a lot
of satisfaction?
Strongly Disagree
Disagree
Neither agree nor disagree
Agree
Strongly agree
Q#2: Do you give preference to Levi products over other companys similar products?
Very unlikely
Unlikely
Neither likely nor unlikely
Likely
Very likely
Q#3: What is the competitive advantage that Levis has over others?
Comfort
Durability
Variety
Style
Innovativeness
Price Affordability
Any other? Please specify:
Q#4: Levis lacks:
Comfort
Durability
Variety
Style
Innovativeness
Price Affordability
Any other? Please specify:
Q#5: You mostly buy products from Levis:
Men section
Women section
Kids section
Q#6: Please, give us your suggestions and recommendations for Levi Strauss and Co. without any
hesitance:
_____________________________________________________________________________________
_____________________________________________________________________________________

Proposed Questions for Qualitative Research

ften?

brick and mortar locations, and why?

ass merchandisers, or specialty
stores and why?

eans? (I.e. peers, celebrities,

etc.)
urrent clothing advertisements?