levi s final project updated

7/21/2019 Levi s Final Project Updated

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Marketing Project Report

Levis Strauss Signature Page 0


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To: ABC

From: Group members mentioned below

Subject: Final Project

Course: Principles of Marketing (MBA-!e"

Date: #$t%April& #'

Group Members:

)

*

+

Teachers Comments:

Table of Contents Page



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Executive Summary 4

About Levis Strauss and Co. 5

Vision

Va!ue

"#e $rand %

&nderstanding t#e 'ar(eting Environment ) 'icroenvironment )

&rban *ro+t# )

,etai! Evo!ution -

ndustry /vervie+ Pa(istan -

Su22!iers 10

LS3Co. Code o Conduct 10

m2!ementation 11

At t#e actory 11

ndustry Co!!aboration 11

ntermediaries 11 Customers 16

Et#ica! Standards 16

Lega! ,e7uirements 16

Environmenta! re7uirements 16

Community invo!vement 16

Com2etitors 18

'acro Environment 15

9atura! Environment 15

/t#er ,a+ 'ateria!s 1

Po!itica! Environment 1 Cu!tura! Environment 1%

:emogra2#ic Environment 1%

"ec#no!ogica! Environment 1%

Economic Conditions o Pa(istan 1)

Ana!ysis ; S


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LS Signature Positioning 68

'ar(et Segmentation 68

"arget 'ar(et 68

'ar(et Segmentation and consumer 2ro>!ing 64

:emogra2#ic Segmentation 64

*eogra2#ic Segmentation 64 Psyc#ogra2#ic Segmentation 64?o!istic 'ar(eting A22roac# n Pers2ective / Anso@'atrix 65

Suggested *ro+t# Strategy 65

'ar(et 2enetration strategy 65

Suggested 'ar(eting mix Strategies 6

Product Strategy 6

Pricing Strategy 6

Promotion strategy 6%

P!acement distribution Strategy 6% Pro2osed :istribution 6)

Pro2osed P3L 6011 6-

Suggestions and ,ecommendations 80

Conc!usion 80



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Executie Summar!

,ei.s /trauss and Co0 is a brand known for 1ualit2 and prestige0 3t stries to proide t%e world4s

casual workda2 wardrobe& inside and out0 ,/5C60& a top manufacturer of brand-name clot%ing

globall2& sells jeans and sportswear under t%e ,ei4s& 7ockers& and ,ei /trauss /ignature names

in more t%an ' countries0 For its # 2ears in Pakistan& it stands proud as a market leader in

denim and non-denim garments and is t%e first preference for especiall2 t%e 2out%0 3ts superior

1ualit2 products are known for innoation in st2le and fas%ion wit% an utmost focus on comfort

and image0 3ts target market consists of 8pper& 8pper middle and Middle class consumers0 9%e2

%ae a wide range of products wit% constant seasonal and occasional improements %appening

eer2 now and t%en0 Focal point being t%e 2out%

9%is report will take 2ou t%roug% t%e ;marketing< direction of ,ei.s /trauss and Co0 wit%

respect to t%e market in Pakistan0 9%e brand of focus in our report is t%eir recentl2 introduced

line= Signature& w%ic% is especiall2 designed to reac% out to t%e Middle income class w%o could

not preiousl2 afford t%e ,ei.s /trauss products0 >it%out an2 compromise on 1ualit2& t%e brand

%as er2 successfull2 penetrated into t%e targeted group& proiding t%em more alue at just t%e

rig%t price

>e %ope t%at after stud2ing t%e report& 2ou will be able to understand and compre%end t%e

marketing plan& strategies& ideologies and strategic direction of ,ei.s /trauss and Co0.s

Signature.

/pecial t%anks toMr. Jawad Saleemfor %is support and guidance so far0

9%ank *ou0



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"bout #eis Strauss an$ Co%

3t was founded in ?$@ w%en ,ei /trauss came from Bettel%eim& Franconia& (ingdom of

Baaria" to /an Francisco& Californiato open a west coast branc% of %is brot%ers4 ew *orkdr2

goodsbusiness0 Alt%oug% t%e compan2 began producing denim oerallsin t%e ?'s& modern

jeans were not produced until t%e D#'s0

,ei /trauss 5 Co0 (,/5C60" stries to proide t%e world4s casual workda2 wardrobe& inside

and out0 ,/5C60& a top manufacturer of brand-name clot%ing globall2& sells jeans and

sportswear under t%e ,ei4s& 7ockers& and ,ei /trauss /ignature names in more t%an '

countries0 3t also markets men4s and women4s bod2 wear and loungewear0 ,ei4s jeans --

department store staples -- were once t%e uniform of American 2out%& but ,/5C60 %as been

working to reconnect wit% t%e nic%e and e!pand outside t%e 8/0 3t %as transformed its products

http://en.wikipedia.org/wiki/Levi_Strausshttp://en.wikipedia.org/wiki/Buttenheimhttp://en.wikipedia.org/wiki/Franconiahttp://en.wikipedia.org/wiki/Franconiahttp://en.wikipedia.org/wiki/Kingdom_of_Bavariahttp://en.wikipedia.org/wiki/Kingdom_of_Bavariahttp://en.wikipedia.org/wiki/San_Francisco,_Californiahttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/Dry_goodshttp://en.wikipedia.org/wiki/Dry_goodshttp://en.wikipedia.org/wiki/Overallhttp://en.wikipedia.org/wiki/Buttenheimhttp://en.wikipedia.org/wiki/Franconiahttp://en.wikipedia.org/wiki/Kingdom_of_Bavariahttp://en.wikipedia.org/wiki/Kingdom_of_Bavariahttp://en.wikipedia.org/wiki/San_Francisco,_Californiahttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/Dry_goodshttp://en.wikipedia.org/wiki/Dry_goodshttp://en.wikipedia.org/wiki/Overallhttp://en.wikipedia.org/wiki/Levi_Strauss


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portfolio to include wrinkle-free and stain-resistant fabrics used in making some of its ,ei4s and

7ockers slacks0 9%e Eaas famil2 (relaties of founder ,ei /trauss" owns ,/5C60

&ision

We believe that business can drive profits through principles, and that our values as a company

and as individuals give us a competitive advantage.

&a'ues

Empath! walking in ot%er people.s s%oes

mpat%2 begins wit% pa2ing close attention to t%e world around us0 >e listen and respond to t%e

needs of our customers& emplo2ees and ot%er stake%olders0

(rigina'it! being aut%entic and innoatie

9%e pioneering spirit t%at started in ?@ wit% t%e er2 first pair of blue jeans still permeates all

aspects of our business0 9%roug% innoatie products and practices& we break t%e mold0

)ntegrit! doing t%e rig%t t%ing

3ntegrit2 means doing rig%t b2 our emplo2ees& brands& compan2 and societ2 as a w%ole0 t%ical

conduct and social responsibilit2 c%aracterie our wa2 of doing business0

Courage standing up for w%at we beliee

3t takes courage to be great0 Courage is t%e willingness to tell t%e trut% and to c%allenge

%ierarc%2& accepted practice and conentional wisdom0 3t means standing b2 our conictions and

acting on our beliefs0

>e are t%e embodiment of t%e energ2 and eents of our time& inspiring people from all walks of

life wit% a pioneering spirit0 Generations %ae worn ,ei.sH jeans& turning t%em into a s2mbol of

freedom and self-e!pression in t%e face of adersit2& c%allenge and social c%ange0 6ur customers

forged a new territor2 called t%e American >est0 9%e2 foug%t in wars for peace0 9%e2 instigated

counterculture reolutions0 9%e2 tore down t%e Berlin >all0 Ieerent& irreerent t%e2 took a

stand0

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The *ran$

9%e /ignature b2 ,ei /trauss 5 CoJ brand& launc%ed in #''& demonstrates t%at distinctie

products& wit% premium fabrics and finis%es& can be aailable to people from eer2 walk of life0

9%e brand offers %ig%-1ualit2& fas%ionable jeans at affordable prices to alue-conscious

consumers at international alue departmental stores suc% as >al-Mart& 9arget and mart

internationall2& Metro& Makro and a number of standalone stores nationwide in Pakistan and

abroad0

>it% denim and casualwear for men& women and c%ildren& /ignature b2 ,ei /trauss 5 Co0J

apparel is t%e ideal fit for families w%o know t%e alue of 1ualit2 craftsmans%ip and

1uintessential st2le t%e er2 t%ings t%at %ae made ,ei /trauss 5 Co0 brands world famous

for generations0

9%e /ignature b2 ,ei /trauss 5 Co0J brand includes a collection of denim and non-denim

pants& s%irts& skirts and jackets for men& women and c%ildren0 ;/uperior Fit& Comfort and /t2leorld Bank (>B" and 3nternational Finance Corporation4s report ;ase of 7oing Business

3nde!< #'' ranked Pakistan ?$ among ? countries around t%e globe0 Pakistan comes %ig%est

in /out% Asia but also ranks %ig%er t%an C%ina& Iussia and 3ndia w%ic% are at @@0 9%e top fie

countries are /ingapore& ew +ealand& t%e 8nited /tates& Eong ong and 8nited ingdom0

9%e ;Goernment of Pakistan< %as granted numerous incenties to tec%nolog2 companies

wis%ing to do business in Pakistan0 A combination of decade-plus ta! %olida2s& ero dutieson

computer imports& goernment incenties for enture capital and a ariet2 of programs for

subsidiing tec%nical education& are intended t%ere0

"na'!sis 3 S4(T

Levis Strauss Signature Page 1)
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/Textileshttp://en.wikipedia.org/wiki/Textileshttp://en.wikipedia.org/wiki/Chemicalshttp://en.wikipedia.org/wiki/Food_processinghttp://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Ease_of_Doing_Business_Indexhttp://en.wikipedia.org/wiki/Ease_of_Doing_Business_Indexhttp://en.wikipedia.org/wiki/Government_of_Pakistanhttp://en.wikipedia.org/wiki/Tax_holidayhttp://en.wikipedia.org/wiki/Tariffhttp://en.wikipedia.org/wiki/Venture_capitalhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/Textileshttp://en.wikipedia.org/wiki/Chemicalshttp://en.wikipedia.org/wiki/Food_processinghttp://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Ease_of_Doing_Business_Indexhttp://en.wikipedia.org/wiki/Ease_of_Doing_Business_Indexhttp://en.wikipedia.org/wiki/Government_of_Pakistanhttp://en.wikipedia.org/wiki/Tax_holidayhttp://en.wikipedia.org/wiki/Tariffhttp://en.wikipedia.org/wiki/Venture_capital


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Strengths

/trong compan2 name ,ei /trauss 5Co0 to back t%e brand& giing it credibilit2 and

aut%enticit20

/trong brand awareness0

Global support in term of tec%nolog2& researc% and product design0

First moer adantage& since ,eis %as been operating in Pakistan for t%e past # 2ears0

Best business partner for retailing and manufacturing0

!perienced& motiated and e!perienced operational team0

>eakness

,ow penetration in t%e smaller cities0

Absence of online s%opping option0

Uust one ware%ouse in Pakistan (in ,a%ore" w%ic% sometimes results in dela2ed s%ipments to

arac%i and ot%er distant areas0

(pportunities

Population base of ?' million people wit% K'L below #' 2ears of age0

6pportunit2 to penetrate into smaller cities and Aad as%mir0

3ntroduction of kid.s range w%ic% is alread2 being produced %ere in Pakistan for urope and

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Levis Strauss Signature Page 1-


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6n-line s%opping solution is a big opportunit2 as t%e internet penetration in Pakistan is

growing at a er2 fast pace0

Threats

Oertical brands local brands wit% low operating cost and %ig% penetration in tier #T@ cities posing

strong competition0

Political instabilit2 and securit2 situation in t%e countr2 can result in retail prolonged

market closure wit% can cause %ea2 losses0

3ncreasing inflation can result in increased input cost0

>eak legislation against intellectual propert2 rig%ts0

Parallel imports and counterfeit product from c%ina and 9%ailand can impact /ignature

brand proposition0



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Customer Drien Marketing Strateg!

Marketing Mix

Pro$uct:

Currentl2 Pakistan is sourcing oer N$' M /ignature for urope and ort% American

market0

9%e local business leerages t%is manufacturing capabilit2 to a great e!tent especiall2 in

t%e core bottoms (jeans" and knits (9-s%irts" area0

9%e local business %as a independent leerage points for woen tops and non-denim

bottoms0

Product sourcing strateg2 relies on domestic contractor base0

,ocal sourcing options allow /ignature to ac%iee strong MGP objecties0

Product design will be ''L adopted from t%e global range giing it t%e global st2le

supremac2 oer t%e competition0

Basic product attributes reole around st2les& colors& fits& fabrics and denim finis%es0

Price:

Affordabilit2 and st2le is t%e foundation of t%e /ignature brand0 9%ere to keep t%e brand

inclusie foe masses releant price range for ,/ /ignature is Is0?DD -#DD0 9%is %as been

determined after taking in considering t%e competitors prices including ,eis brand0

Pricing Strateg!:

Aerage costs for nit tops (t-s%irts" and bottoms (jeans" must are suc% t%at t%e2 can

support t%e sweet spot price and also maintain %ealt%2 gross margins0



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Acceptable price range for bottoms can be between 8/NK-#'& based on consumerT

market information0

,ocal /ourcing improes landed cost substantiall2 due to lower import dut2 5 freig%t

cost (appro!imatel2 #$-@'L"0

Competitie Ietail margin 5 credit period terms in t%e standard segment is critical for

brand success0

P'ace:

9%e business will need to create footprint w%ic% %as an integrated 5 controlled retail

brand presence0

eed to establis% geograp%ic footprint wit% appropriate Franc%ise& /3/ 5 /%elf presence

in releant markets0

Create specific product distribution models and criteria for different c%annels& including

direct to retail option as appropriate0

6ptimie seasonal inentor2 inestment at t%e affiliate leel b2 focusing on a sell-in

process based on made to order0

Promotion:

Adopt and adapt globalTregional communication to create brand aut%enticit20

Create brand awareness for /ignatureH b2 adopting mass communication c%annels e0g0

6utdoor& print& electronic (9O5 radio" and in-store0



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Consolidate our communication in limited mediums and create optimal presence instead

of spreading out t%in0

nsure product range and communication is aligned wit% t%e target age group and profile0

(i0e0 Price 5 Brand Conscious consumers"0

nsure standardiation and uniformit2 in /tore format and OM 5 merc%andiing displa2

to create brand recognition and top of mind awareness0

Current Segmentation5 Targeting5 an$ Positioning Strategies

Market Positioning an$ Segmentation

#S Signature Positioning

,/ /ignature is positioned as an international affordable brand w%ic% stands for 1ualit2&

craftsmans%ip= comfort 5 eer2da2 wear w%ic% is casual& eas2 going and simple0

Market Segmentation

/ignature %as a two pronged approac%0 /egmentation strateg2 means products are focused on

specific& selected and focused market0 3n t%e form of ,ei /trauss /ignature brand t%e compan2

(,/5Co" %as created t%e product to suit t%e tastes or demands of a specific market0 For /ignature

t%is market constitutes of 2out% belonging to middle and upper middle class0 9%is segment is

discussed in more dept% furt%er along in t%e presentation0

9%e ot%er strateg2 adopted is t%e Cost leaders%ip /trateg20 9%is strateg2 pertains to mass

production of standardied products to lower t%e cost0 7enim fabric and finis%ed product is

manufactured in %ig% olumes to lower t%e costs of t%e product because fi!ed costs are

ma!imied and economies of scale are ac%ieed0

Target Market:



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9%e target market for /ignature in Pakistan is 2out% men and women en $-#V 2ears of age w%o

possess international fas%ion awareness0 9%ese are sensible c%oosers looking for affordabilit2&

2et sta2ing wit% t%e running trends locall2 and internationall20

Market Segmentation an$ Consumer Pro0i'ing

Demographic Segmentation

o Be%aioral /egmentation$-#VQ 2ear olds& earl2 5 late adopters 5 regulars& t%e2

lie wit% %isT%er parents0

o

,iing in B 5 BQ residential areas of top ten metro-cities of Pakistan0

o Aerage Eouse%old 3ncome ranging from N#$'-N$'' per mont%0

o Eig% /c%ool 5 8niersit2 students and job beginners starting t%eir professional

careers on entr2 leel positions0

Geographic Segmentation

o /ignature coers Pakistan urban population0

o Primaril2 top $ urban cities arac%i& ,a%ore& Gujranwala& /ialkot& 3slamabad&

Iawalpindi& Faisalabad and Multan&

Ps!chographic Segmentation

o 9%e2 are fun loing& confident and e!pressie0

o 9%e2 are 2oung mobile users w%o like to switc% cell p%ones fre1uentl20

o 9%e2 like to %ang out wit% friends in %ip restaurants and cafW0

o ,ikes to spend mone2 and %as e!cess to credit cards0

o 9%e2 like music& sports current affairs and %ae knowledge about t%e global

trends0



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6o'istic Marketing "pproach in Perspectie (0 "nso00 Matrix

Suggeste$ Gro,th Strateg!

Market penetration strateg!

,eis %as been in t%e business of selling jeans and denim products for t%e oer $' 2ears& t%e

product strateg2 for ,ei /trauss /ignature is based on t%is fact0 /ignature brand in Pakistan and

t%oug% out t%e world is adopting market penetration strateg20 9%is strateg2 is suggested to

ac%iee t%e following objecties0



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3ncrease present bu2er.s usage or consumption rates of t%e offering0

Attracting bu2ers of competing brands0

/timulating product trial among potential consumers0

The Strateg! is supporte$ b! the 0o''o,ing pro$uct marketing mix0

Suggeste$ Marketing mix Strategies

Pro$uct Strateg!

Product forms t%e basis of t%is strateg20 Eere t%e competition is 1uite comple! w%ic% also

includes ,eis brand along wit% ot%er local brands mentioned aboe0

9%ere s%ould be no compromise on product 1ualit2 inn /ignature as well all ot%er

,/5Co products w%en it comes to ,ei /trauss as t%e oer arc%ing compan2 name0 9%e

cost can be rationalied t%roug% a number of ot%er factors suc% as fabric weig%t& finis%ing

tec%ni1ues& bulk purc%ases of raw material and usage of standardied sundries0Pricing Strateg!:/ignature brand is firml2 rooted in affordabilit2 and alue for mone20 9%e pricing s%ould support

and proe it:

Iationalie cost of product to enable t%e brandTcompan2 to delier t%e market rig%t

pricing0

9%is price s%ould be strategicall2 kept slig%tl2 below or at par wit% t%e competition0 9%is

would delier t%e customers true alue for mone2 as t%e2 are read2 to pa2 some e!tra for

t%e international brand

S,eet Spot Pricing



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Promotion strateg!

/ignature is continuousl2 offering deals to its consumer to keep t%eir interest intact in t%e brand0

But still more aggressie and focused campaign could %elp it re-inforcing its ;low-pricede suggest introductions of better

bundle deals on t-s%irts& cross promotions between tops and bottoms categor2& etc0

6nline s%opping option strateg2 to be introduced0 Could use forums on t%e /ignature

website0 Euge potential

P'acement7 $istribution Strateg!

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Customer traffic is t%e name of t%e game0 Eig%er t%e foot fall t%e better will be t%e sale= it does

not matter if it is a %ig% profile or low profile market& mall or baaar0 9%e2 s%ould neer lose

sig%t of t%e fact t%at t%e sie of t%e prieTmarket is ?' million people0

/ignature is following t%e mass spread model of distribution w%ic% is spread it as far as

2ou canXjean for eer2one& its basic clot%ing0 9o lie up to t%is t%e2 need to penetrate

into pot%er %ig% potential markets& b2 entering ot%er major cities of Pakistan& w%ic% are

still irgin0

Also& penetration into Middle class is also anot%er strateg2 w%ic% can be used& as

considering t%e price& t%e2 are er2 muc% a potential market& especiall2 t%e 2out%& w%o

ma2 not be fre1uent in bu2ing ,ei.s but it would be t%eir ;first< c%oice w%en t%e2 %ae

t%e capacit2 to bu2 it0 More smaller stores in Mass markets could reinforce t%is0

Propose$ $istribution

R Continue to e!pand footprint in Metro cities t%roug% franc%ise network0

R eed for deeper penetration in tier # cities wit% alue added deals and products0

R !pand into t%ese markets t%roug% distributorTw%olesale c%annels to manage dist cost0

R Concentrate more on multi-brand apparel stores in tier # locations0

R Iecommended cities >a% Cantt& Ue%lum entt& I*& Abottabad& Aad as%mir

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Propose$ Pro0it an$ #oss Statement 0or the perio$ 89

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Suggestions an$ Recommen$ations

After closel2 anal2ing t%e ,ei /trauss /ignature.s marketing approac%& we can state t%e

following recommendations for t%e better future of t%eir brand:

0 3ncrease penetration in ot%er major cities of Pakistan0 Euge potential#0 7esigned to target t%e ;middle income< consumer group& t%e marketing team could %ae

done better promotion of t%e ;low-priced< attribute for t%is specific brand& due to w%ic%

t%e positioning was not muc% different from t%at of t%e parent brand0@0 Considering t%e world of globaliation toda2& /ignature s%ould introduce t%e online-

s%opping option for its products0V0 3ncrease t%e number of ware%ouses0 Currentl2 t%ere is onl2 one ware%ouse for t%e entire

production in Pakistan (w%ic% is in ,a%ore"& so t%e products produced in arac%i %ae to

be broug%t back to ,a%ore and t%en sent back0 9%is increases t%eir selling and

administration e!penses0

Conc'usion

>e conclude t%e project b2 sa2ing t%at it %as been an e!cellent learning

e!perience to conduct t%is researc% and anal2sis0 ,ei.s /trauss and Co0 is

undoubtedl2 one of t%e best organiations in t%e world& proing e!cellent

customer alue and 1ualit2 products to its consumers and stands out as a market

leader& and rig%tl2 so

3t.s trul2 t%e brand for t%e 2out%



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9%ank *ou0

levi s final project updated

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