Post on 19-Jan-2017
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 19841940s1920s1890s 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 Jeans
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 needs
• 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
BRANDIDENTITY
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 shoesOriginality Being authentic and innovativeIntegrity 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 REDLEVI’S VINTAGE
PREMIUM SPECIAL EDITION
LEVI’S TYPE 1PURE BLUE
ENGINEERED JEANSSILVER TAB
RED TAB
LEVI’S STRAUSS SIGNITURE
LEVI
’S B
RAN
DLE
VI S
TRAU
SS
SIGN
ITU
RE
BRAN
D
Trend Initiators
Trend Influencers
Early Adopters
Traditional
Value Driven
$145 - $220
$48 - $110
$35 - $48
$27 - $30
$Under $30
Levis
Seve
n
True RelAG
Rocawear
Sean
John
0
100
200
300
400
Levis
Wrangle
rSe
ven Le
e
True Rel CK AG
Rag & Bone
Disel
Baby P
hat0
200
400
600
800MEN’S DENIM MARKET PRICING WOMEN’S DENIM MARKET PRICING
STOW• 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
Americana90s nostalgia“Jorts”/Cut offsTighter fitted stylesDenim shirts/jacketsArtisan denimQuality becoming important
SOCIALLY CONCIOUSBuying domestic /labor ethicsEnvironmentalismBuying local
INCREASINGLY DIVERSE CONSUMER DEMOGRAPHICS
Most diverse US population Growing Hispanic populationIncreased immigration
WROKPLACE ENVIRONMENTSMore lax office dress codesMore people working from home
RECESSIONDecreased spending powerNegative attitude towards flashy high end brands
MARKET DENIM INDUSTRY
Growing segmentIncreasing sales in all demographic3 in 10 jean buyers own Levi’s
Hispanics buy more jeansMost consumers buy to replaceFit is most important factor60% buy to replace old pairAverage consumer owns 4-6 pairs
GROWING APPAREL INDUSTRYMen’s : 30MM in 5 yearsWomen’s: 50MM in 5 years
INCREASED GLOBAL COMPETITIONJapan: Iron Heart, SauraiSpain: DsquaredNetherlands: G-StarSweden: 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
ENVIRONMENTALISMProtests against Levi’s
factory polluting water in Mexico
CLIMATE CHANGECotton production
affected by Increased heat and water shortages in Pakistan,
China, and Australia
POP CULTURECelebrities wearing tighter fitter denim
OBESITY EMIDEMICIncreased need for plus
sizes
HISPANIC POPULATIONIncreased need in brands that appeal to diverse demos
1
23
4
5WranglerAmerican EagleSeven for all MankindTrue ReligionCalvin Klein Lee AG
GAPMacy’sUrban OutfittersFree PeopleAbercrombie & FitchZaraHollisterForever 21NordstromH&MTights/Leggings- American Apparel, Uniqlo
Sweat Pants- Champion, PinkSlacks –Ann Taylor, Banana RepublicWork pants- Dickies, DockersDresses /Skirts- Urban Outfitters, Zara, H&M
Shoes – Steve Madden, Aldo, NikeMake up- Sephora, MacHousehold Needs- Target, WalmartWatches – G-ShockHandbags & Jewelry Sports JerseysHeadphones- Beats by Dre Other Apparel
Changing fashion trendsClub dress codes/School dress codesArt supplies/Music equipmentConcert or Sporting event ticketsFestivals – Coachella, Ultra, EDCHave too many jeans
LEVIS B&M
3RD PARTY B&M
LEVIS ONLINE
3RD PARTY
ONLINE
LEVIS LUXURY
B&M
LEVIS OUTLET
POP-UP SHOPS
MENX X X X X X X
WOMENX X X X X X X
BABIES& TODDLERS X XTWEENS
X X XTEENS
X X XSHOES
X XACCESSORIES
X X X
LEVIS B&M
3RD PARTY B&M
LEVIS ONLINE
3RD PARTY
ONLINE
LEVIS LUX
B&M
LEVIS OUTLET
POP-UP
SHOPSMOBILE CATALOG BLOG FACTORY B2B
MEN X X X X X X X X X XWOMEN X X X X X X X X X XBABIES&
TODDLERS X X X X XTWEENS X X X X X XTEENS X X X X X XSHOES X X X X X
ACCESSORIES X X X X X XSWIMWEAR X X X X X X X X XLINENS X X X X X XTECH
ACCESSORIES X X X X X X X X
DIY CUSTOM X X XHIGH END
DENIM X X X X X X X X XUNIFORMS X X X
TRENDY
CLASSIC
AFFORDABLE EXPENSIVE
FASHIONABLE
FUNCTIONAL
HIGH DURABILITY
LOW DURABILIY
URBAN
HIPSTER
EXPENSIVEAFFORDABLE
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
Enhance 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 CONCEPTCrafting 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
Thank You