Levi Strauss ; Co. Essay

Company Background

Levi Strauss & A ; Co. is an American company well-known worldwide for its jean denims. The company was founded in 1853 and headquartered in San Francisco California. The Bavarian-born Levi Strauss moved to Gold Rush epoch San Francisco to open a dry goods concern. He sold apparels. boots and other goods to the little retail shops of the American West. In 1872. Jacod Davis. a seamster from Reno. Nevada. teamed with Levi Strauss to make and patent work wear riveted-for-strength made of brown cotton duck and true blue jean. On May 20. 1873 the U. S. Patent and Trademark Office granted a patent to Levi Strauss and Jacob Davis for their innovation. This is how the bluish denim. originally called “XX” . was born. The Two Horse logo demonstrates the unbelievable strength of Levi’s® vesture. The logo is foremost branded onto the leather spot of the “XX” denims in 1886 and is still used today. In 1890. the original “XX” bluish denim is given its iconic batch figure 501® .


How will Levi’s develop and put to death a strategic program that will assist the company recover its trade name individuality and keep client trueness towards Levi’s denims?


To turn to the above job. we will: 1. Analyze the market sections and place with which Levi’s can spread out its market portion and increase client trueness. 2. Recommend actions that will increase the degree of acknowledgment and satisfaction towards Levi’s denims.


4Ps of Marketing
Levi’s has extended its manner design from work forces to adult females and children’s wear and dress. It offers extended merchandise line from tops to bottom. denims. jerseies. jackets and underwear. It place its merchandises as modern-day. sexy and high quality trade names.

Here in the Philippines. Levi’s monetary values range from Php1. 800. 00 for Regular Straight Fit denims to Php4. 000. 00 for its 501 Original denims. For the Filipino criterions. this pricing is rather expensive as compared to the other available trade names in the market which merely cost within Php1. 000.

Topographic points
Levi Strauss & A ; Co. is a well-established planetary concern. They operate in 110 states. and about half of their cyberspace grosss come from outside the United States. Their victory in making genuinely planetary distribution of our merchandises is mostly due to their path record of responsible concern patterns. As they continue to spread out internationally. their end is to run in conformity with their values wherever they beginning their stuffs or industry and sell their apparels. They are excited about the planetary possibilities for LS & A ; Co. Their presence in the United States. Canada. Western Europe and Japan is good established. In the old ages in front. their end is to spread out the trade names in India. China. Russia. Brazil and other emerging markets.

Levi’s continue to publicize through traditional selling such as hoardings ; nevertheless. they are now switching to non-traditional selling by tapping societal webs and others. The Project Runway episode in January 2008 focuses on the 501® Series of the Levi’s trade name. It was Levi’s denims was besides featured on one of the American hit sitcom “The Office” . Levis has besides teamed up with some online shopping web sites such as Groupon by offering vouchers and voucher codification price reductions.

Target Market
During the 1990s. Levi’s has been stressing its sale in sweeping selling. They sell 1000000s of bluish Levi’s braces to retail merchants and guarantee that these retail merchants gain a good sum of net income. This scheme has led them to disregard the consumers. Since so. the company changed its focal point non merely to retail merchants but to consumers every bit good. They started to react to consumers’ feedbacks to be able to continuously better the merchandises depending on the fast-changing gustatory sensations of the consumers. The market in the Clothing Industry was so disconnected that a batch of companies are viing for market portion. Levi’s top rivals are Gaap. Wrangler. Spykar. and Tommy Hilfiger. Since Levi’s is rather expensive for Filipinos. it’s mark market is chiefly the Upper category and Upper Middle Class who have an estimated household income of Php 50. 000-100. 000 per month.

SWOT Analysis

Without a uncertainty. Levi’s is a well-recognized trade name in the vesture industry. It has strong trade name name and expertness in the denims industry. It remains to be the world’s largest denims company. Its extended merchandise line entreaties to all genders of all ages and life style. The company besides has a good distribution channel and planetary footmark since it operates in America. Europe and Asia and the Pacific in more than 110 states in approximately 50. 000 retail shops. It can shadow the fast changing manner trends through its province of the art design development in Istanbul. Turkey and three design centres in Brussels. Hong Kong and San Francisco.

In the late ninetiess. Levi’s identified that they have been concentrating on its function in sweeping selling. selling 1000000s of braces bluish Levi’s to retail merchants and guaranting good gross revenues volumes and net incomes for these retail merchants but they ignored the client. This brought about the diminution in its trade name equity.

Another failing of Levi’s is its monetary values compared to other trade names. Its monetary values range from Php 1. 800. 00 for Regular Straight Fit denims to Php 4. 000. 00 for its 501 Original denims. This pricing is rather expensive as compared to the other available trade names in the market which merely cost within Php1. 000. Because of this. Levi’s limits its market to Upper and Upper Middle Class merely.

In the coming of new engineering. shopping has become an easiness. Peoples can purchase about anything on-line. Levi’s can utilize this chance to their advantage. They can set-up an online store where clients can purchase Levi’s merchandises and can even bespeak for customized manners and designs.

Another chance for Levi’s is the turning dress industry. Peoples presents are fashion-conscious and they tend follow the tendencies for each season. Because of this. they buy more and more apparels than they really need. This mentality among clients is brought approximately by the strong advertisement runs of vesture concerns and the incorporation of manner in mainstream media.

There are assorted menaces which we considered for Levi’s. First. the intense competition in the Apparel and Fashion Market. Its market is already congested with legion rivals. Because of the intense competition. increased selling attempts are critical which may necessitate a important sum of resources. Second. the increasing costs during the full production ( runing. stuffs. and labour ) . With this. the company might necessitate to set the monetary values of its merchandises excessively but since being expensive is one of the company’s major failings. adding of certain sum to its retail monetary value may non be possible. Third. because of its pricey merchandises. the menace of permutation is comparatively high. Levi’s will hold to vie with other trade names with much lower monetary value in the market. This is besides prone to forging. Fourth. Levi’s should cover with the fast altering gustatory sensation of consumers when it comes to manner.

To be able to react to the company’s aims. we recommend that the Levi’s usage a bit-by-bit ways to repossess its individuality. These stairss include ( 1 ) Know your Target Market. ( 2 ) Increase the consumers’ trade name consciousness. ( 3 ) Make your consumers retrieve your trade name. ( 4 ) Construct a solid trade name image. and ( 5 ) Battle of the consumers to Levi’s denims.

We propose the undermentioned programs / undertakings in order to implement the recommended class of action. as follows: 1. Know your Target Market – Since Levi’s mark market is the Upper and Upper Middle Class. its shops / merchandises should be seen in topographic points where these sort of persons are normally found such as Shangri-la Mall. Greenbelt. Powerplant Mall. etc. – Levi’s should besides cognize the things that affect their consumers in footings of determination devising. Discover why they bought the merchandise. A regular interview of the gross revenues agents to the purchasers may assist the company cognize what needs to be improved. 2. Increase the consumers trade name consciousness

Here’s where different advertisement scheme comes into drama. Our end is to make public consciousness and so construct on that trade name. Companies do this by acquiring consumers to detect that their merchandise stands out from the remainder. One of the most normally used Advertising Strategy is through Traditional media. Traditional Media became a trusted beginning of information and derive a batch of audience over the old ages. It have spent old ages cultivating readers. hearers. and viewing audiences. and they are Masterss at making mark audience sections – from Baby Boomers who tune into oldies radio to athleticss partisans and understanding concern executives who monitor commentary on newspaper op-ed pages.

Television is the easiest manner to pass on with mark market because many people. particularly Filipinos at all ages. are still hooked to watching telecasting even at their past clip. Commercials and advertizements of telecastings are indirect ways of informing the consumers about their merchandises because for them. they are merely watching the telecasting. However. people nowadays become dependent in utilizing their tablets and smartphones to research about everything which makes them lose the importance of the traditional media. 3. Make your consumers retrieve your trade name

– To do clients retrieve the trade name and do the merchandise more relevant in pop civilization. Levi’s can follow the scheme of Victoria Secret in the international scene or Bench in the Filipino set-up. Levi’s can form an event showcasing the brand’s new designs and aggregations. They can utilize manner shows to exhibit fashionable ways to have on their merchandises. Through this event. people can associate that the apparels Levi’s is selling is for mundane usage but at the same clip stylish. This can be an one-year event which people will look frontward to.

Levi’s can besides patronize an episode in a world show related to manner like America’s Next Top Model or Project Runway wherein their merchandises will be used by the contestants. Sing the broad audience of these shows. people will go more familiar with the merchandises of the company. This will besides act upon the people to purchase the merchandise because they will tie in the it with the shows.

3. Construct a solid trade name image
Every merchandise has its particular characteristics. Add to that the character Levi’s wants to portray to its market. In Levi’s instance. it is manner and quality. Combine those to be able to reenforce an image of the merchandise that reflects the company. These features must be emphasized to every advertizements. The company have its tagline which is “ Quality ne’er goes out of style” but non all are cognizant of this. Probably. Levi’s may re-design its logo and include their tagline. In that manner. there is higher possibility that they would catch the eyes of the consumers and there will be an addition in trade name consciousness since every clip people sees their tagline. they automatically think of Levi’s. Consumers must to the full understand your trade name and believe in it in order for it to construct equity.

5. Battle of the consumers to Levi’s denims
Supply the consumers with the best quality where they won’t have 2nd ideas of passing their money with. Once consumers started to be satisfied with what Levi’s offers them. those trade names reach degrees of success as cult trade names and finally as true relationship trade names. Then they become loyal non merely to the merchandise but to the trade name itself. It is besides when consumers are satisfied that when they think of the class. they think of Levi’s. And when consumers think of the company. they automatically think of a ground to purchase you vs. the rivals.