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Marketing Project Report

Levis Strauss Signature

Page 0

To:

ABC

From:

Group members mentioned below

Subject:

Final Project

Course:

Principles of Marketing (MBA-Exe)

Date:

25th April, 2011

Group Members:
X
Y
Z

Teachers Comments:

Table of Contents

Levis Strauss Signature

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Executive 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
Promotion
Current Segmentation, Targeting, and Positioning
Strategies

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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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Executive Summary
Levis 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.

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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

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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.

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

Values
Empathy 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.

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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.

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Understanding the Marketing Environment

The Marketing Environment

Microenvironment
In 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 Growth
It 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

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Retail Evolution
Three 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
segments.

Parallel imports and factory over runs creating interest for the consumer and unbranded
Chinese product available at attractive prices and quality.

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Stores selling export quality and imports reflect a consumer opportunity for standard.

Department stores & MBO`s are expected to grow and represent a distribution opportunity
for the Signature brand.

Suppliers:
For more than 155 years, Levi Strauss & Co. has worked to honor the pioneering spirit of hard
work, individuality and authenticity in how weve made our products, and how weve run our
company. They have dedicated themselves to elevating the dignity of the people who work to
bring their clothing to market. And theyve invested our time, energy, heart and resources in
improving the future of those sourcing communities.

LS&Co. Code of Conduct

Almost two decades ago, in 1991, they were the first multinational apparel company to establish
a comprehensive workplace code of conduct for their manufacturing suppliers. Their Terms of
Engagement spell out labor, health and safety, and environmental requirements. It is based on
United Nations documents such as the Universal Declaration of Human Rights and International
Labor Organization (ILO) Core Conventions. Over the years, many companies have adopted
similar codes of conduct, and today most of those reflect their original Terms of Engagement. In
1995, they added strict water quality standards as part of our environmental requirements. And in
1999 and 2005, they strengthened protections of workers rights to form unions and conduct
collective bargaining.

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Implementation

Over the years, LS&Co has established a strong program to assess how well their suppliers are
meeting their code and, when we identify problems, how to improve. They have also learned that
monitoring their suppliers is only one part of improving working conditions.
In addition to working directly with their suppliers, they have programs in the communities to
strengthen worker rights. Levis also work with governments to strengthen labor laws and their
enforcement. Ultimately, improving working conditions in their supplier factories requires the
involvement of their suppliers, local organizations, governments and other buyers that may be
sourcing in those factories.

At the Factory

Levis employ full-time factory assessors, located around the world where their suppliers are.
These experts understand the scope of our labor and environment, health and safety standards
and know the local languages, laws, culture and business context of each country in which Levis
operates. They conduct regular assessments of every factory contracted to manufacture our
products. These assessments are based on standards found in their Social and Environmental
Sustainability Guidebook, which all Levis suppliers receive in their local language.
Industry Collaboration
LS&Co. is a member of the Fair Factories Clearinghouse along with brands like adidas,
L.L.Bean, Starbucks, Timberland and VF Corp., which are dedicated to improving workplace
conditions.

Intermediaries
Levis is mainly operating through a franchise channel and same is the structure for Signature.
However there is a wholesale component to it as well. There is a natural contrast of working n
the two channels, franchise maintains a lower forward inventory cover and works on
replenishment while the whole sale sellers maintain a broader inventory cover. The margin % as
well as the product line is different for the two channels/intermediaries. The company has one
single distribution center/warehouse which furnishes product throughout the country. Two years

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back the company shifted to the state of the ask SAP system for financial controls which has
proven to be extremely efficient from all aspect including inbound and outbound shipments.

Customers
Before we move any further we should clarify the terms customer and consumer. At Levis
customer is the franchise partner and the consumer is the end user. From a customer stand point
Levis as an organization puts a lot of emphasis on the choice of right king of business partners.

Business Partner Terms/ customers standards

LS&Co. business standards assist them in selecting business partners that follow work place
standards and business practices consistent with their Company's policies. As a set of guiding
principles, they also help identify potential problems so that Levis can work with their business
partners/customers to address issues of concern as they arise.
Specifically, they expect their business partners to operate workplaces where the following
standards and practices are followed:
Ethical Standards: They identify and utilize business partners who aspire as individuals and in
the conduct of all their businesses to a set of ethical standards not incompatible with Levis
standards.
Legal Requirements: They expect their business partners to be law abiding as individuals and to
comply with legal requirements relevant to the conduct of all their businesses.
Environmental Requirements: Levis only does business with partners who share their
commitment to the environment and who conduct their business in a way that is consistent with
Levi Strauss & Co.'s Environmental Philosophy and Guiding Principles.
Community Involvement: They will favor business partners who share their commitment to
contribute to improving community conditions.

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Competitors
Being a global company Levis has two sets of competitors local and international. Some of the
top competitors for Levis are.

-Guess Jeans

- Diesel

- Seven Jeans

- Citizens of Humanity

- True Religion Jeans


Competition in retail channels is fragmented but emergence of mass channel players and some
local brands has changed the landscape in the last 2 years. The Standard Jeans market in
Pakistan. Major competitors in the market place are as follows.
1. Stone age
2. Cross Road
3. Outfitters
4. Few other local brands ( having very low market share)

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While its competition some of these channels also represent an expansion opportunity. Stores
selling export quality and imports reflect a consumer preference ad if addressed can be persuaded
to sell Signature. Department stores & MBOs are key channels for Selling Imports & export
jeans wear and represent a distribution opportunity for the Signature brand for volume
Market Share
generation.
Having said that, Standalone
2008 2009 2010
Signature stores
will be critical to establish brand
Signature
35% 38% 39%
authenticity.
Stone age
16% 24%
Outfitters
15% 17% 17%
Cross Roads
30% 15% 11%
Others
20% 14% 9%
Total
100% 100% 100%

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Macro Environment
In macro level environment; Levis Signature is being affected by number of factors which
include natural, political, cultural, demographic, technological and economic conditions of
Pakistan and the world. Like other successful companies, Levis Signature also has realized that
the marketing environment presents a never-ending series of opportunities and threats. The major
responsibility for identifying significant changes in the micro and macro environment falls to a
companys marketers.
Many opportunities are found by identifying trends (directions or sequences of events that have
some momentum and durability) and mega trends (major social, economic, political and
technological changes that have long-lasting influence).
Within the rapidly changing global picture, the marketers of Stone Age are monitoring the
following six major Environmental Forces:

Natural Environment
Political Environment
Cultural Environment
Demographic Environment
Technological Environment
Socio economic Environment

Natural Environment:
Cotton
Cotton is the foundation of Levi Strauss as an organization and its products. Cotton accounts for
40% of the worlds fiber production and generates a $40 billion a year textile market. It is grown
in more than 100 countries, with China, India and the U.S. accounting for nearly two-thirds of
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global output. More than 40 million farmers and 290 million farm workers make a living by
growing cotton. About 80% of the cotton farms are small, many are family owned. About 70% of
the industry is labor intensive, especially outside the U.S. and it typically uses a lot of pesticides
and water.
Though Levis is a big consumer of cotton, they use less than 1% of the worlds annual cotton
crop. Trying to promote more sustainable practices in an industry that is so fragmented is a
challenge. By creating alliances with other big cotton consumers, Levis leverage the power of
their brands in support of more sustainably produced cotton which uses less water and fewer
pesticides. They have joined forces with other brands and retailers, including The Gap, Marks &
Spencer, Adidas and IKEA, as well as other groups like WWF, Pesticide Action Network UK,
and farmers organizations such as the International Federation of Agricultural Producers to form
the Better Cotton Initiative

Other Raw Materials


Less than 5% of the raw materials in our supply chain are from sources other than cotton. A
small fraction of that percentage is material derived from animals. Levi Strauss & Co. strives to
be responsible when sourcing materials from animals and our goal is to ensure that wherever
animals are used in the production of their products, their health and welfare is protected.

Political Environment
Political environment in Pakistan continues to be challenging. The democratic government of
Pakistan peoples part which came in power approximately three years back has been
unsuccessful on delivering its of basic promise of food, clothing and shelter.
The Pakistani government is actively encouraging foreign investment, but faces formidable
challenges in its attempts to improve the operational environment. Corruption remains endemic
at all levels and officials often demand kickbacks. Bureaucracy is slow and obstructive, and the
infrastructure falls well short of desirable standards. Inconsistent policy implementation also
poses problems. The government's anti-corruption and privatization drive has slowed down
significantly amid severe political and security instabilities, which has left numerous sectors such
as power, agriculture, and financial services in dire need of reform.
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Cultural Environment
Cultural environment in Pakistan continues to be challenging as there is a natural resistance
towards the west especially in women clothing area. Local dresses still dominate the apparel
industry for both men and women; Bareeza, generations, gul Ahmed, Junaid Jamshed, and Amir
Adnan etc are examples of this statement.
However the recent trends have extended some optimizes to this cultural scenario due to an
influx of information through liberated media which has significantly increased general public
exposure. When it come to western fashion, Pakistan follows the US for casual and Europe for
formal fashion trends. Levis was present in Pakistan long before it was formally launched here.

Demographic Environment
Pakistan is the sixth largest country in the world in terms of population. With a population base
of over 180million people, 60% of the population of Pakistan is between 15-20 years of age. This
makes Pakistan one of the most lucrative jean market in the world, as it fits perfectly in the target
age bracket.

Technological Environment

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Pakistan seems to be doing better in the tech sector which includes telecommunication, IT,
textile technology. Here we are primarily focusing on the textile sector only.
Pakistan is ranked as the worlds fourth largest producer and the third largest consumer of
cotton, with a spinning capacity of 2.89 million kg of yarn and weaving capacity of 8.94
million sqm of cloth. The textile industry of Pakistan contributes over 50% to the countrys
total exports with an investment of US$ 7 billion over the past six years. Textile exports in
the last fiscal year were US$ 9.48 billion. There are more than 4000 textile related industrial
units operating in Pakistan out of which 90% of the units are using latest machinery and
imported parts. In order to facilitate the local textile industry, the Government of Pakistan
has allowed duty free import of a wide range of textile machinery and equipment.

Economic Conditions of Pakistan


The economy of Pakistan is the 27th largest in the world (in absolute dollar terms). Pakistan has
a semi-industrialized economy, which mainly encompasses textiles, chemicals, food processing,
agriculture and other industries.
The World Bank (WB) and International Finance Corporation's report Ease of Doing Business
Index 2010 ranked Pakistan 85 among 181 countries around the globe. Pakistan comes highest
in South Asia but also ranks higher than China, Russia and India which are at 133. The top five
countries are Singapore, New Zealand, the United States, Hong Kong and United Kingdom.
The Government of Pakistan has granted numerous incentives to technology companies
wishing to do business in Pakistan. A combination of decade-plus tax holidays, zero duties on
computer imports, government incentives for venture capital and a variety of programs for
subsidizing technical education, are intended there.

Analysis - SWOT
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Strengths

Strong company name Levi Strauss &Co. to back the brand, giving it credibility and

authenticity.
Strong brand awareness.
Global support in term of technology, research and product design.
First mover advantage, since Levis has been operating in Pakistan for the past 12 years.
Best business partner for retailing and manufacturing.
Experienced, motivated and experienced operational team.

Weakness

Low penetration in the smaller cities.


Absence of online shopping option.
Just one warehouse in Pakistan (in Lahore) which sometimes results in delayed shipments to
Karachi and other distant areas.

Opportunities

Population base of 180 million people with 60% below 20 years of age.
Opportunity to penetrate into smaller cities and Azad Kashmir.
Introduction of kids range which is already being produced here in Pakistan for Europe and
US.

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On-line shopping solution is a big opportunity as the internet penetration in Pakistan is


growing at a very fast pace.

Threats
Vertical brands local brands with low operating cost and high penetration in tier 2/3 cities posing
strong competition.

Political instability and security situation in the country can result in retail prolonged

market closure with can cause heavy losses.


Increasing inflation can result in increased input cost.
Weak legislation against intellectual property rights.
Parallel imports and counterfeit product from china and Thailand can impact Signature
brand proposition.

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Customer Driven Marketing Strategy


Marketing Mix
Product:

Currently Pakistan is sourcing over $50 M Signature for Europe and North American
market.

The local business leverages this manufacturing capability to a great extent especially in
the core bottoms (jeans) and knits (T-shirts) area.

The local business has a independent leverage points for woven tops and non-denim
bottoms.

Product sourcing strategy relies on domestic contractor base.

Local sourcing options allow Signature to achieve strong MGP objectives.

Product design will be 100% adopted from the global range giving it the global style
supremacy over the competition.

Basic product attributes revolve around styles, colors, fits, fabrics and denim finishes.

Price:
Affordability and style is the foundation of the Signature brand. There to keep the brand
inclusive foe masses relevant price range for LS Signature is Rs.899 -1299. This has been
determined after taking in considering the competitors prices including Levis brand.
Pricing Strategy:

Average costs for Knit tops (t-shirts) and bottoms (jeans) must are such that they can
support the sweet spot price and also maintain healthy gross margins.

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Acceptable price range for bottoms can be between US$16-20, based on consumer/
market information.

Local Sourcing improves landed cost substantially due to lower import duty & freight
cost (approximately 25-30%).

Competitive Retail margin & credit period terms in the standard segment is critical for
brand success.

Place:

The business will need to create footprint which has an integrated & controlled retail
brand presence.

Need to establish geographic footprint with appropriate Franchise, SIS & Shelf presence
in relevant markets.

Create specific product distribution models and criteria for different channels, including
direct to retail option as appropriate.

Optimize seasonal inventory investment at the affiliate level by focusing on a sell-in


process based on made to order.

Promotion:

Adopt and adapt global/regional communication to create brand authenticity.

Create brand awareness for Signature by adopting mass communication channels e.g.
Outdoor, print, electronic (TV& radio) and in-store.

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Consolidate our communication in limited mediums and create optimal presence instead
of spreading out thin.

Ensure product range and communication is aligned with the target age group and profile.
(i.e. Price & Brand Conscious consumers).

Ensure standardization and uniformity in Store format and VM & merchandizing display
to create brand recognition and top of mind awareness.

Current Segmentation, Targeting, and Positioning Strategies


Market Positioning and Segmentation
LS Signature Positioning
LS Signature is positioned as an international affordable brand which stands for quality,
craftsmanship; comfort & everyday wear which is casual, easy going and simple.
Market Segmentation
Signature has a two pronged approach. Segmentation strategy means products are focused on
specific, selected and focused market. In the form of Levi Strauss Signature brand the company
(LS&Co) has created the product to suit the tastes or demands of a specific market. For Signature
this market constitutes of youth belonging to middle and upper middle class. This segment is
discussed in more depth further along in the presentation.
The other strategy adopted is the Cost leadership Strategy. This strategy pertains to mass
production of standardized products to lower the cost. Denim fabric and finished product is
manufactured in high volumes to lower the costs of the product because fixed costs are
maximized and economies of scale are achieved.
Target Market:

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The target market for Signature in Pakistan is youth men and women en 15-24 years of age who
possess international fashion awareness. These are sensible choosers looking for affordability,
yet staying with the running trends locally and internationally.

Market Segmentation and Consumer Profiling

Demographic Segmentation
o Behavioral Segmentation15-24+ year olds, early & late adopters & regulars, they
live with his/her parents.
o Living in B & B+ residential areas of top ten metro-cities of Pakistan.
o Average Household Income ranging from $250-$500 per month.
o High School & University students and job beginners starting their professional
careers on entry level positions.

Geographic Segmentation
o Signature covers Pakistan urban population.
o Primarily top 5 urban cities Karachi, Lahore, Gujranwala, Sialkot, Islamabad,
Rawalpindi, Faisalabad and Multan,

Psychographic Segmentation
o They are fun loving, confident and expressive.
o They are young mobile users who like to switch cell phones frequently.
o They like to hang out with friends in hip restaurants and caf.
o Likes to spend money and has excess to credit cards.
o They like music, sports current affairs and have knowledge about the global
trends.

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Holistic Marketing Approach in Perspective Of Ansoff Matrix

Suggested Growth Strategy


Market penetration strategy
Levis has been in the business of selling jeans and denim products for the over 150 years, the
product strategy for Levi Strauss Signature is based on this fact. Signature brand in Pakistan and
though out the world is adopting market penetration strategy. This strategy is suggested to
achieve the following objectives.
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Increase present buyers usage or consumption rates of the offering.

Attracting buyers of competing brands.

Stimulating product trial among potential consumers.

The Strategy is supported by the following product marketing mix.


Suggested Marketing mix Strategies
Product Strategy
Product forms the basis of this strategy. Here the competition is quite complex which also
includes Levis brand along with other local brands mentioned above.

There should be no compromise on product quality inn Signature as well all other
LS&Co products when it comes to Levi Strauss as the over arching company name. The
cost can be rationalized through a number of other factors such as fabric weight, finishing

techniques, bulk purchases of raw material and usage of standardized sundries.


Pricing Strategy:
Signature brand is firmly rooted in affordability and value for money. The pricing should support
and prove it:
Rationalize cost of product to enable the brand/company to deliver the market right

pricing.
This price should be strategically kept slightly below or at par with the competition. This
would deliver the customers true value for money as they are ready to pay some extra for
the international brand

Sweet Spot Pricing

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Promotion strategy
Signature is continuously offering deals to its consumer to keep their interest intact in the brand.
But still more aggressive and focused campaign could help it re-inforcing its low-priced
attribute.

Mass marketing could be improved by the total amount of marketing budget being
spent on the promotional activities in below mentioned proportions:

Device sales promotions which are tactical in nature. We suggest introductions of better

bundle deals on t-shirts, cross promotions between tops and bottoms category, etc.
Online shopping option strategy to be introduced. Could use forums on the Signature
website. Huge potential!

Placement/ distribution Strategy

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Customer traffic is the name of the game. Higher the foot fall the better will be the sale; it does
not matter if it is a high profile or low profile market, mall or bazaar. They should never lose
sight of the fact that the size of the prize/market is 180 million people.

Signature is following the mass spread model of distribution which is spread it as far as
you canjean for everyone, its basic clothing. To live up to this they need to penetrate
into pother high potential markets, by entering other major cities of Pakistan, which are

still virgin.
Also, penetration into Middle class is also another strategy which can be used, as
considering the price, they are very much a potential market, especially the youth, who
may not be frequent in buying Levis but it would be their first choice when they have
the capacity to buy it. More smaller stores in Mass markets could reinforce this.

Proposed distribution

Continue to expand footprint in Metro cities through franchise network.

Need for deeper penetration in tier 2 cities with value added deals and products.

Expand into these markets through distributor/wholesale channels to manage dist cost.

Concentrate more on multi-brand apparel stores in tier 2 locations.

Recommended cities Wah Cantt, Jehlum Kentt, RYK, Abottabad, Azad Kashmir

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Proposed Profit and Loss Statement for the period 2011

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Suggestions and Recommendations


After closely analyzing the Levi Strauss Signatures marketing approach, we can state the
following recommendations for the better future of their brand:
1. Increase penetration in other major cities of Pakistan. Huge potential!
2. Designed to target the middle income consumer group, the marketing team could have
done better promotion of the low-priced attribute for this specific brand, due to which
the positioning was not much different from that of the parent brand.
3. Considering the world of globalization today, Signature should introduce the onlineshopping option for its products.
4. Increase the number of warehouses. Currently there is only one warehouse for the entire
production in Pakistan (which is in Lahore), so the products produced in Karachi have to
be brought back to Lahore and then sent back. This increases their selling and
administration expenses.

Conclusion
We conclude the project by saying that it has been an excellent learning
experience to conduct this research and analysis. Levis Strauss and Co. is
undoubtedly one of the best organizations in the world, proving excellent
customer value and quality products to its consumers and stands out as a market
leader, and rightly so !
Its truly the brand for the youth!!

Levis Strauss Signature

Page 30

Thank You.

Levis Strauss Signature

Page 31

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