Background History The company was founded in San Francisco, California by Levi Strauss in 1853 primarily selling wholesale dry goods. •
After few years ... they learned about the needs of the gold miners ... seeking a durable pair of pants, Strauss designed a pants from a heavy brown canvas. ( THE WORLD FIRST PAIR OF JEANS) •
By 1890 the popularity of their jeans and other dry goods had spread. Levi’s jeans were assigned a lot number “501” and sales had grown by year 1900. •
During 1930s the western movies began to glamorize the blue jeans. Levi’s jeans became an even more valuable product during the World War 2. by the 50s & 60s Levi’s jeans became a fashion wear. •
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By year 1975, sales had reached $1 billion and rose to $2 billion in 1979.
Marketing Analysis
Marketing Analysis
Levi’s Strauss - The Company Inspiring people with a pioneering spirit.
Levi Strauss & Co. (LS&CO.) is one of the world's largest brand-name apparel marketers with sales in more than 110 countries. There is no other company with a comparable global presence in the jeans and casual pants markets. Today, the Levi's® trademark is one of the most recognized in the world and is registered in more than 160 countries. The company employs a staff of approximately more than 8,850 people worldwide, including approximately 1,000 people at its San Francisco, California headquarters. Levi Strauss & Co currently makes jeans in approximately 108 sizes and 20 finish fabrics. With 2009 net sales of $4.1 billion, the company is committed to building upon strong heritage and brand equity as they position the company for future growth. Marketing Analysis
Historical SWOT Analysis Strength
Weakness
Opportunities
Internal
50’s - 60’s - First American apparel trademark (Jeans). - Becoming a symbol of freedom, adventure. - Western movies began to glamorize blue jeans (1950) 80’s
- Levi’s 501 jeans were an icon & levi’s name is synonymous with jeans - Divisions seperation ------------------------------
Threats External
- Woodstock rock festival (Levi’s were the essential fashion for emerging baby boom generation). - Gals Market
- Not focus on the Core product ... Diversification is too much ------------------------------ Discontinued many licensing arrangement. - Closed 40 Factories. - Streamed lined staff. Reducing Payroll.
- Expanding retail opportunities/ Distribution (JC penny, Sears ...) ------------------------------ 36$ Million Advertising Campaign focused on the unique and personnel image reminding the customers of the uniqueness of levi’s brand.
------------------------------ Competition. - Shifts in the fashion trends. (Lee, Wrangler,..) - High price fashion image brands; CK, Bill Blass
Marketing Analysis
Historical SWOT Analysis Strength
Weakness Internal
80’s
Opportunities
Threats External
- Diversification - Not Focus - People need more (Offering products that - Slow growth among diversity. (Product Mix) can fit in any lifestyle) primary Market. - Women’s wear. - Corporate Strategy - People see that levi’s is (Developing new strategy - only Blue Jeans. each division responsible - Competition (Lee, for its Advertising) Wrangler..)
End of - Introducing New the 80s - Casuals but with 90s continuing focus on their core jeans product.
- Motivating customers to remain within the brand Levi’s
- Introducing New Casuals to motivate customers. - Opportunities in new markets.
- Losing the Brand loyalty of the traditional Levi’s 501 jeans.
- Competition
Marketing Analysis
General SWOT Analysis Strengths : Levi’s enjoys high brand equity. •
(People all around the world recognize the brand name.)
Levi’s products are unique and innovative in the style. A lot of variety is offered by Levi’s ranging from pants, sunglasses to skirts and shirts (Product Mix). The products are renowned and are considered as the most durable. Levi’s follows a high standard of quality. Enhancing the consumer retail experience. • •
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Weakness: Levi’s products are considered as expensive. Therefore a large percentage of people are reluctant to buy the products. Many Competitors with better prices. Weak in the information technology systems. •
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Marketing Analysis
General SWOT Analysis Opportunities : Levi’s can do more well in the women section. This section is give less importance as compared to the men section. The kid’s section, which has been started from few years, should also be given proper attention to gain customers. Sales promotion can be increased by increasing the advertisements expenses so as to enjoy a large number of customers. •
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Threats: Intense competition in the worldwide apparel industry could lead to reduced sales and prices. The revenues are influenced by general economic conditions. •