levi,s final project (updated)

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Marketing Project Report

To: From: Subject: Course: Date:

Jawad Saleem Group members mentioned below Final Project Principles of Marketing (MBA-Exe) 25th April, 2011

Group Members: Imran Butt Iraj Sohail Jawad Raza Ahmad Rohafa Babar

Teachers Comments:

Levis Strauss Signature

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Table of ContentsExecutive Summary About Levis Strauss and Co. Vision Value The Brand Understanding the Marketing Environment Microenvironment Urban Growth Retail Evolution Industry Overview (Pakistan) Suppliers LS&Co. Code of Conduct Implementation At the Factory Industry Collaboration Intermediaries Customers Ethical Standards Legal Requirements Environmental requirements Community involvement Competitors Macro Environment Natural Environment Other Raw Materials Political Environment Cultural Environment Demographic Environment Technological Environment Economic Conditions of Pakistan Analysis - SWOT Strength Weakness Opportunities Threats Customer Driven Marketing Strategy Product Price Pricing Strategy Place Levis Strauss Signature

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Promotion Current Segmentation, Targeting, and Positioning Strategies LS Signature Positioning Market Segmentation Target Market Market Segmentation and consumer profiling Demographic Segmentation Geographic Segmentation Psychographic Segmentation Holistic Marketing Approach In Perspective Of Ansoff Matrix Suggested Growth Strategy Market penetration strategy Suggested Marketing mix Strategies Product Strategy Pricing Strategy Promotion strategy Placement/ distribution Strategy Proposed Distribution Proposed P&L 2011 Suggestions and Recommendations Conclusion

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Levis Strauss Signature

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Executive SummaryLevis Strauss and Co. is a brand known for quality and prestige. It strives to provide the world's casual workday wardrobe, inside and out. LS&CO., a top manufacturer of brand-name clothing globally, sells jeans and sportswear under the Levi's, Dockers, and Levi Strauss Signature names in more than 110 countries. For its 12 years in Pakistan, it stands proud as a market leader in denim and non-denim garments and is the first preference for especially the youth. Its superior quality products are known for innovation in style and fashion with an utmost focus on comfort and image. Its target market consists of Upper, Upper middle and Middle class consumers. They have a wide range of products with constant seasonal and occasional improvements happening every now and then. Focal point being the youth! This report will take you through the marketing direction of Levis Strauss and Co. with respect to the market in Pakistan. The brand of focus in our report is their recently introduced line; Signature, which is especially designed to reach out to the Middle income class who could not previously afford the Levis Strauss products. Without any compromise on quality, the brand has very successfully penetrated into the targeted group, providing them more value at just the right price! We hope that after studying the report, you will be able to understand and comprehend the marketing plan, strategies, ideologies and strategic direction of Levis Strauss and Co.s Signature. Special thanks to Mr. Jawad Saleem for his support and guidance so far.

Thank You.

Levis Strauss Signature

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About Levis Strauss and Co.

It was founded in 1853 when Levi Strauss came from Bettelheim, 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. Levi Strauss & Co. (LS&CO.) strives to provide the world's casual workday wardrobe, inside and out. LS&CO., a top manufacturer of brand-name clothing globally, sells jeans and sportswear under the Levi's, Dockers, and Levi Strauss Signature names in more than 110 countries. It also markets men's and women's body wear and loungewear. Levi's jeans -department store staples -- were once the uniform of American youth, but LS&CO. has been working to reconnect with the niche and expand outside the US. It has transformed its products portfolio to include wrinkle-free and stain-resistant fabrics used in making some of its Levi's and Dockers slacks. The Haas family (relatives of founder Levi Strauss) owns LS&CO.

Levis Strauss Signature

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VisionWe believe that business can drive profits through principles, and that our values as a company and as individuals give us a competitive advantage.

ValuesEmpathy walking in other peoples shoes Empathy begins with paying close attention to the world around us. We listen and respond to the needs of our customers, employees and other stakeholders. Originality being authentic and innovative The pioneering spirit that started in 1873 with the very first pair of blue jeans still permeates all aspects of our business. Through innovative products and practices, we break the mold. Integrity doing the right thing Integrity means doing right by our employees, brands, company and society as a whole. Ethical conduct and social responsibility characterize our way of doing business. Courage standing up for what we believe It takes courage to be great. Courage is the willingness to tell the truth and to challenge hierarchy, accepted practice and conventional wisdom. It means standing by our convictions and acting on our beliefs. We are the embodiment of the energy and events of our time, inspiring people from all walks of life with a pioneering spirit. Generations have worn Levis jeans, turning them into a symbol of freedom and self-expression in the face of adversity, challenge and social change. Our customers forged a new territory called the American West. They fought in wars for peace. They instigated counterculture revolutions. They tore down the Berlin Wall. Reverent, irreverent they took a stand.

Levis Strauss Signature

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The Brand

The Signature by Levi Strauss & Co brand, launched in 2007, demonstrates that distinctive products, with premium fabrics and finishes, can be available to people from every walk of life. The brand offers high-quality, fashionable jeans at affordable prices to value-conscious consumers at international value departmental stores such as Wal-Mart, Target and Kmart internationally, Metro, Makro and a number of standalone stores nationwide in Pakistan and abroad. With denim and casualwear for men, women and children, Signature by Levi Strauss & Co. apparel is the ideal fit for families who know the value of quality craftsmanship and quintessential style the very things that have made Levi Strauss & Co. brands world famous for generations. The Signature by Levi Strauss & Co. brand includes a collection of denim and non-denim pants, shirts, skirts and jackets for men, women and children. Superior Fit, Comfort and Style are the words emblazoned on the patch of every pair of our Signature jeans.

Levis Strauss Signature

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Understanding the Marketing Environment

The Marketing Environment

MicroenvironmentIn microenvironment Levi Strauss Signature is affected by Suppliers, Intermediaries, Customers and Competitors. These four groups affect the company in many different ways and exert pressure and effects differently. In 2005 textile was given a tax exemption and was made 0 dbase. Now in 2011 that exemption has been withdrawn and a 6% tax has been in posed on the local textile sector; however textile exporters are exempted from this tax.

Urban GrowthIt is estimated that in 2008, about 6.8 million of the 50 million people living in urban Pakistan belonged to the upper and uppermiddle class and this segment is projected to grow to 17 million people by the year 2010. Per capita income grew by an average rate of 13.5 percent per annum during the last three years rising from $736 in 2007 to $831in 2010

Levis Strauss Signature

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Retail EvolutionThree years of strong economic growth complemented by record low interest rates and the ongoing structural shift of many households in Pakistan toward higher consumption have injected new life into domestic spending. Despite inflation the invisible arm of the economy continues to be strong, reflecting positively in the consumer disposable income. Over the last decade the retail sector in urban Pakistan continues to evolve rapidly. The emergence of new formats such as superstores, VISS and shopping plazas catering to the urban middle class and upper disposable income groups is accelerating. Signs of modern retail presence are emerging. Global mass retailers such as German Metro, Dutch Makro and the French Carrefour have announced entry the Pakistani market. Local player Q-Mart has already opened its first 10000sqft store as a part of 100+ chain. The entry of such firms is going to profoundly alter the retail landscape further. Retail demand is modernizing the retail landscape.

Industry Overview (Pakistan) Non Denim market fragmented and more competitive than Denim. Numerous non denim competitors with specialization in casual pants, tops, sweaters are available in the market. Growing presence of VISS brands like Hang Ten, Cross Roads, Bonanza, Oxford, Cambridge ;Wrangler etc. who have stand alone stores. Retail channels remain fragmented and highly dependent on MBOs and street markets. Textile manufacturers interest in local retail market increasing ( Stone Age. Etc). Competition remain fragmented and no leadership is evident in the standard and value se