Anyarat Priyawat Ching-Hui Chen Erin Morrison Francis Ramos Kathryn Klopp Sona Martirosian
Levi Strauss & Co. is one of the world's largest brand-name apparel companies and a global leader in jeans-wear . The company designs and markets jeans, casual wear and related accessories for men, women and children. Levi’s products are sold in more than 110 countries worldwide through a combination of chain retailers, department stores, online sites, and a global footprint of approximately 2,800 retail stores and shop-in-shops. Levi Strauss & Co.'s reported fiscal 2012 net revenues were $4.6 billion. The Levi’s® brand epitomizes classic American style and effortless cool. Since their invention by Levi Strauss & Co. in 1873, Levi’s® jeans have become the most recognizable and imitated clothing in the world — capturing the imagination and loyalty of people for generations.
1853 1873 1950s 1984 1940s 1920s 1890s 1930s 1934 1965 1980s 1991 1999 2011 Founded by the Strauss family Made the first blue jeans: the first riveted men’s work pants out of denim Created the Levi 501s J eans Introduced to the Eastern US during the dude ranch craze During World War II – Blue jeans were declared an essential commodity and were sold only to people engaged in defense work From 1950 – 1980s Levi's jeans became popular of youth subcultures Made clothing for the athletes at Olympic Games Time magazine names the 501® jean the Fashion Item of the Century Sales confined to the working people of the Western U.S. Made the first jeans for women, Lady Levi's® Expanded to Europe and Asia Levi’s branched out into a range of different garments Terms of Engagement: help promote fair labor standards and workers' rights Created commuter line: Born To Bike
CURRENT TARGET MARKETS
CURRENT TARGET MARKETS Age: 15-30 Male & Female Fashion conscious Students & young professionals Middle Income VALUES: Self expression Authenticity Peer acceptance Trendsetter Effortless cool Age: 30-50 Male & Female Professionals & Blue collar Have been wearing Levi’s since since their youth VALUES: Sense of loyalty American sprit Familiarity Self expression
FUNCTIONAL BENEFITS Mobility Protection Durability Convenience Variety of prices Variety of sizes/styles Collections optimized for specific need s Trendy Classic styling Innovative technology 1 2 3
FREEDOM TO BE CONFIEDNT EXPRESS YOURSELF AND BE ACCEPTED BY SOCIAL PEERS ACCEPT YOURSELF AS YOU ARE AND EXPRESS YOUR CONFIENDCE EMOTIONAL BENEFITS
BRAND IDENTITY A style for every story. Have you ever had a bad time in Levi's? Quality never goes out of style. Levis . Original jeans. Original people. TAGLINES BRAND CONCEPT Levi’s gives everyone the opportunity to craft experiences and opportunities by building confidence through durable clothing.
FUNCTIONAL BENEFITS Empathy Walking in other people’s shoes Originality Being authentic and innovative Integrity Doing the right thing Courage Standing up for what we believe Real Rooted in who we are and put or values into action Adventurous Seek adventure and encourage explorations Motivated Remain focused and deliver on our promises Confident Freedom to be yourself VALUES PERSONALITY
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 Levi’s® 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. It is our belief that American ingenuity never fades. That hard work, creativity, freedom, and self-expression never go out of style. This ingenuity and work ethic has changed society on a global scale, but also at the street level, helping our customers revolutionize the way that they are seen and heard. So every day we want to inspire creativity, to support all movements, and to make the American dream come true again, and again, and again.
Competitive Advantage Consumers' Expectation Conclusion Affordable Affordable Affordable Low to Medium Premium collection Wide Price Range Wide Price range Free Alteration Frequent Discount Retail Return Free Free shipping High cost/performance Free Shipping on $100+ order Free Return Shipping Fee Online Student Discount 20% Student Discount Frequent Discount Frequent Discount High cost/performance High cost/performance PRICING STRATEGY
LEVI’S JEANS LINES LEVI’S RED LEVI’S VINTAGE PREMIUM SPECIAL EDITION LEVI’S TYPE 1 PURE BLUE ENGINEERED JEANS SILVER TAB RED TAB LEVI’S STRAUSS SIGNITURE LEVI’S BRAND LEVI STRAUSS SIGNITURE BRAND Trend Initiators Trend Influencers Early Adopters Traditional Value Driven $145 - $220 $48 - $110 $35 - $48 $27 - $30 $Under $30
S T O W High global top of mind awareness Authentic “American” brand Deep market penetration Large breadth of product (cuts and washes) Owns a unique product naming model (“501”) Good balance of style and versatility Utilizes a wide array of distribution channels Playing in a crowded market Not considered to be a high-end brand Inconsistent pricing model across distribution channels Work attire is becoming increasingly casual Large gap in the urban market – no clear cut market leader Denim pants are becoming acceptable in high-end night clubs Lack of well-known American-made selvedge denim brands Increased popularity of American-made products Influx of new competitors in the denim market Rise of non-denim pant options (leggings, chinos, etc.) Increased interest in sartorial men’s fashion.
CONSUMER FASHION TRENDS Americana 90s nostalgia “ Jorts ”/Cut offs T ighter fitted styles D enim shirts/jackets A rtisan denim Quality becoming important SOCIALLY CONCIOUS Buying domestic /labor ethics Environmentalism Buying local INCREASINGLY DIVERSE CONSUMER DEMOGRAPHICS Most diverse US population Growing Hispanic population Increased immigration WROKPLACE ENVIRONMENTS More lax office dress codes More people working from home RECESSION D ecreased spending power N egative attitude towards flashy high end brands MARKET DENIM INDUSTRY Growing segment Increasing sales in all demographic 3 in 10 jean buyers own Levi’s Hispanics buy more jeans Most consumers buy to replace Fit is most important factor 60% buy to replace old pair Average consumer owns 4-6 pairs GROWING APPAREL INDUSTRY Men’s : 30MM in 5 years Women’s: 50MM in 5 years INCREASED GLOBAL COMPETITION Japan: Iron Heart, Saurai Spain: Dsquared Netherlands: G-Star Sweden: Nudie, Cheap Monday LEVI’S MARKETING CAMPAIGNS Make Your Mark We are all workers Skateboarding Collection Commuter Collection Vintage Collection EXTERNAL LABOR PRACTICES Workers striking hazardous work conditions in Singapore Levi’s factory Levi’s work to block minimum wage increase in Haiti ENVIRONMENTALISM Protests against Levi’s factory polluting water in Mexico CLIMATE CHANGE Cotton production affected by Increased heat and water shortages in Pakistan, China, and Australia POP CULTURE Celebrities wearing tighter fitter denim OBESITY EMIDEMIC Increased need for plus sizes HISPANIC POPULATION Increased need in brands that appeal to diverse demos
1 2 3 4 5 Wrangler American Eagle Seven for all Mankind True Religion Calvin Klein Lee AG GAP Macy’s Urban Outfitters Free People Abercrombie & Fitch Zara Hollister Forever 21 Nordstrom H&M Tights/Leggings- American Apparel, Uniqlo Sweat Pants- Champion, Pink Slacks –Ann Taylor, Banana Republic Work pants- Dickies , Dockers Dresses /Skirts- Urban Outfitters, Zara, H&M Shoes – Steve Madden, Aldo, Nike Make up- Sephora, Mac Household Needs- Target, Walmart Watches – G-Shock Handbags & Jewelry Sports Jerseys Headphones- Beats by Dre Other Apparel Changing fashion trends Club dress codes/School dress codes Art s upplies/Music equipment Concert or Sporting event tickets Festivals – Coachella, Ultra, EDC Have too many jeans
LEVIS B&M 3 RD PARTY B&M LEVIS ONLINE 3 RD PARTY ONLINE LEVIS LUXURY B&M LEVIS OUTLET POP-UP SHOPS MEN X X X X X X X WOMEN X X X X X X X BABIES& TODDLERS X X TWEENS X X X TEENS X X X SHOES X X ACCESSORIES X X X
LEVIS B&M 3 RD PARTY B&M LEVIS ONLINE 3 RD PARTY ONLINE LEVIS LUX B&M LEVIS OUT LET POP-UP SHOPS MOBILE CATALOG BLOG FACTORY B2B MEN X X X X X X X X X X WOMEN X X X X X X X X X X BABIES& TODDLERS X X X X X TWEENS X X X X X X TEENS X X X X X X SHOES X X X X X ACCESSORIES X X X X X X SWIM WEAR X X X X X X X X X LINENS X X X X X X TECH ACCESSORIES X X X X X X X X DIY CUSTOM X X X HIGH END DENIM X X X X X X X X X UNIFORMS X X X
TRENDY CLASSIC AFFORDABLE EXPENSIVE
FASHIONABLE FUNCTIONAL HIGH DURABILITY LOW DURABILIY
URBAN HIPSTER EXPENSIVE AFFORDABLE
URBAN CUSTOMER SEGMENT Ethnically, economically, and culturally diverse Ethnic youth culture Build “transcultural” identities Music, fashion, language central to identity Focused in cities: NY, LA, SF, Chicago, Miami Trend setters Fast paced lifestyles Fashion driven by city environment Value independence/ “street smarts” Take pride in defying convention Work tirelessly towards their passions Process multiple media sources simultaneously Style is more important to younger consumers than cost Black consumers spent $2Billion on apparel & footwear last year Lower income urbanites view jeans as an aspirational purchase Hispanic consumers buy more jeans than any other group
RECOMMENDATIONS E nhance Levi’s relationship with key target audiences and develop an optimized brand and communications platform specially targeted to the Urban demographic. Building on our legacy and driven by our value, we want to empower young Urban adults to seize opportunities that matter in their lives, and follow their own American dream.
BRAND CONCEPT Crafting experiences through confidence BRAND PROMISE Provide opportunities through durable clothing. BRAND PERSONALITY Real, Adventurous, Motivated, Confident External Retailers Corporate Social Responsibility Social Media Our Communications: What We Say and How We Say it to Our Target Internal