Post on 18-Oct-2015
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EXECUTIVE SUMMARY
Apparel are not just the domain of women any longer and Indian men too are increasingly taking
to the use of more and more quality apparel and accessories. With consumers coming out of
festive or occasional need based buying habits there is a rising demand in the Indian market. The
market size is evolving and is getting enlarged and many players are coming out with their entire
range of offering. Globalization will certainly increase international labels and products
penetration and all professionals shall equip themselves to exploit opportunities offered by this
sector.
The consumers are the largest economic group in any country and the present day business
activities are because of consumers only. Thus, consumers are the pillars of the economy. The
consumers are not only the heart of marketing system, but also the controller of marketing
functions. But it the modern marketing system consumers sovereignty has become a myth on
account of the variety of problems in the process of merchandising. The study of consumer
behavior enables marketers to understand and predict consumer behavior in the market place; it
also promotes understanding of the role that consumption plays in the lives of individual.
This gives me an opportunity to work on with this endeavor focusing on the Consumer behavior
and perception of consumers towards apparel and accessories with special reference to LEVIS
product line. The primary objective of the study is to understand the consumer behavior and
perception of consumer by studying the awareness of the financial products within the
consumers and the number of consumers who buys merchandize from LEVIS and its sub-brands
under the Inditex flagship.
INTRODUCTION
This study aims in understanding consumer perception of LEVIS brand in the Indian consumers.
The behavior that consumers display in searching for, purchasing, using, evaluating, and
disposing of products and services that they expect will satisfy their needs.
It is essential to understand how people interact with the marketing system. Whatever else we
may be in our lives Child, Student, Jogger, Lover, worker, Parent we are all consumers, all of
our days. We buy and use goods and services constantly; to eat , to wear, to read, to watch, to
play, to travel; to keep us healthy, to makes us wealthy and if not wise, at least better educated.
Consumer behavior has changed dramatically in the past decade. Today, consumers can order
online many customized products ranging from sneakers to computers. Today, the digital
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revolution of the market place allows much greater customization of products, services and
promotional messages than older marketing tools.
Consumer have Today
A substantial increase in buying power. A Greater variety of available goods & services. A great amount of information about practically anything. A great ease in interacting and placing and receiving orders. An ability to compare notes on products & services.
Consumer behavior is the study of when, why, how, and where people do or do not buy a
product.
Perception is defined as 'the process by which an individual receives, selects, organizes, and
interprets information to create a meaningful picture of the world'.
THE SELECTIVE PERCEPTION PROCESS
Stage Description
Selective exposure consumers select which promotional messages they will expose
themselves to.
Selective attention consumers select which promotional messages they will pay attention
to
Selective comprehension consumer interpret messages in line with their beliefs, attitudes,
motives and experiences
Selective retention consumers remember messages that are more meaningful or important
to them
The implications of this process help develop an effective promotional strategy, and
select which sources of information are more effective for the brand.CV
1. Information evaluation
At this time the consumer compares the brands and products that are in their evoked set. How
can the marketing organization increase the likelihood that their brand is part of the consumer's
evoked (consideration) set? Consumers evaluate alternatives in terms of the functional and
psychological benefits that they offer. The marketing organization needs to understand what
benefits consumers are seeking and therefore which attributes are most important in terms of
making a decision
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2. Purchase decision
Once the alternatives have been evaluated, the consumer is ready to make a purchase decision.
Sometimes purchase intention does not result in an actual purchase. The marketing organization
must facilitate the consumer to act on their purchase intention. The organization can use variety
of techniques to achieve this. The provision of credit or payment terms may encourage purchase,
or a sales promotion such as the opportunity to receive a premium or enter a competition may
provide an incentive to buy now. The relevant internal psychological process that is associated
with purchase decision is integration. Once the integration is achieved, the organization can
influence the purchase decisions much more easily.
3. Post purchase evaluation
It is common for customers to experience concerns after making a purchase decision. This arises
from a concept that is known as cognitive dissonance. The customer, having bought a product,
may feel that an alternative would have been preferable. In these circumstances that customer
will not repurchase immediately, but is likely to switch brands next time.
To manage the post-purchase stage, it is the job of the marketing team to persuade the potential
customer that the product will satisfy his or her needs. Then after having made a purchase, the
customer should be encouraged that he or she has made the right decision. It is not effected by
advertisement.
FACTORS WHICH INFLUENCE CONSUMER BEAHVIOUR
Internal influences
Consumer behavior is influenced by: demographics, psychographics (lifestyle), personality,
motivation, knowledge, attitudes, beliefs, and feelings. Consumer behavior concern with
consumer need consumer actions in the direction of satisfying needs leads to his behavior of
every individual depend on thinking.
External influences
Consumer behavior is influenced by: culture, sub-culture, locality, royalty, ethnicity, family,
social class, reference groups, lifestyle, and market mix factors
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Consumer purchases are influenced strongly by or there are four factors.
1. Cultural Factor
Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii) Social Class
Culture
The set of basic values perceptions, wants, and behaviors learned by a member of society from
family and other important institutions. Culture is the most basic cause of a persons wants and
behavior. Every group or society has a culture, and cultural influences on buying behavior may
vary greatly from country to country.
Sub Culture
A group of people with shared value systems based on common life experiences and situations.
Each culture contains smaller sub cultures a group of people with shared value system based on
common life experiences and situations. Sub culture includes nationalities, religions, racial group
and geographic regions. Many sub culture make up important market segments and marketers
often design products.
Social Class
Almost every society has some form of social structure. Social classes are societys relatively
permanent and ordered divisions whose members share similar values, interests and behaviour.
2. Social Factors
A consumers behavior also is influenced by social factors, such as the (i) Groups (ii) Family (iii)
Roles and status
Groups
Two or more people who interact to accomplish individual or mutual goals. A persons behavior
is influenced by many small groups. Groups that have a direct influence and to which a person
belongs are called membership groups. Some are primary groups includes family, friends,
neighbors and coworkers. Some are secondary groups, which are more formal and have less
regular interaction. These include organizations like religious groups, professional association
and trade unions.
Family
Family members can strongly influence buyer behavior. The family is the most important
consumer buying organization society and it has been researched extensively. Marketers are
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interested in the roles, and influence of the husband, wife and children on the purchase of
different products and services.
Roles and Status
A person belongs to many groups, family, clubs, and organizations. The persons position in
each group can be defined in terms of both role and status.
3. Personal Factors
It includes: Age and life cycle stage (ii) Occupation (iii) Economic situation (iv) Life Style (v)
Personality and self concept.
Age and Life cycle Stage
People change the goods and services they buy over their lifetimes. Tastes in food, clothes,
furniture, and recreation are often age related. Buying is also shaped by the stage of the family
life cycle.
Occupation
A persons occupation affects the goods and services bought. Blue collar workers tend to buy
more rugged work clothes, whereas white-collar workers buy more business suits. A Co. can
even specialize in making products needed by a given occupational group. Thus, computer
software companies will design different products for brand managers, accountants, engineers,
lawyers, and doctors.
Economic situation
A persons economic situation will affect product choice
Life Style
Life Style is a persons Pattern of living, understanding these forces involves measuring
consumers major AIO dimensions. i.e. activities (Work, hobbies, shopping, support etc) interest
(Food, fashion, family recreation) and opinions (about themselves, Business, Products)
Personality and Self concept
Each persons distinct personality influences his or her buying behavior. Personality refers to the
unique psychological characteristics that lead to relatively consistent and lasting responses to
ones own environment.
4. Psychological Factors
It includes these Factors.
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i) Motivation (ii) Perception (iii) Learning (iv) Attitudes
Attitudes
Attitude can be defined as simply and overall evaluation and it usually play a major role in
shaping consumer behavior.
As represented in Figure, in a contemporary view, attitude is formed in two fundamental ways:
the cognitive component beliefs, and the affective component feelings. And these two
determinants contribute in different manner towards different attitude object. And then, a
persons behavioral intention will depend on her or his attitudes.
Consequently, consumers intentions to perform some behavior should increase as their attitudes
become more favorable. (Engel, Blackwell & Miniard 1995, p. 364-366).
(Figure: The Relationship among Beliefs, Feeling, Attitude, Behavioral Intention, and Behavior)
Beliefs Feelings
Attitude
Behavioral
Intention
Behavior
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History of Levis
Levi Strauss started the business at the 90 Sacramento Street address in San Francisco. He next
moved the location to 62 Sacramento Street then 63 & 65 Sacramento Street.
Jacob Davis, a Latvian Jewish immigrant, was a Reno, Nevada tailor who frequently purchased
bolts of cloth made from denim from Levi Strauss & Co.'s wholesale house. After one of Davis'
customers kept purchasing cloth to reinforce torn pants, he had an idea to use copper rivets to
reinforce the points of strain, such as on the pocket corners and at the base of the button fly.
Davis did not have the required money to purchase a patent, so he wrote to Strauss suggesting
that they go into business together. After Levi accepted Jacob's offer, on May 20, 1873, the two
men received U.S. Patent 139,121 from the United States Patent and Trademark Office. The
patented rivet was later incorporated into the company's jean design and advertisements.
Contrary to an advertising campaign suggesting that Levi Strauss sold his first jeans to gold
miners during the California Gold Rush (which peaked in 1849), the manufacturing of denim
overalls only began in the 1870s. The company then created their first pair of Levis 501 Jeans in
the 1890s, a style that went on to become the world's best selling item of clothing. photo of an
advertising sign for Levi Strauss & Co. painted on a brick wall in Woodland, California
LEVI STRAUSS ADVERTISING SIGN
Modern jeans began to appear in the 1920s, but sales were largely confined to the working
people of the western United States, such as cowboys, lumberjacks, and railroad workers. Levis
jeans apparently were first introduced to the East during the dude ranch craze of the 1930s, when
vacationing Easterners returned home with tales (and usually examples) of the hard-wearing
pants with rivets. Another boost came in World War II, when blue jeans were declared an
essential commodity and were sold only to people engaged in defense work.
Between the 1950s and 1980s, Levi's jeans became popular among a wide range of youth
subcultures, including greasers, mods, rockers, hippies and skinheads. Levi's popular shrink-to-
fit 501s were sold in a unique sizing arrangement; the indicated size referred to the size of the
jeans prior to shrinking, and the shrinkage was substantial. The company still produces these
unshrunk, uniquely sized jeans, and they are still Levi's number one selling product. Although
popular lore (abetted by company marketing) holds that the original design remains unaltered,
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this is not the case: the crotch rivet and waist cinch were removed during World War II to
conform to War Production Board requirements to conserve metal, and was not replaced after the
war. Additionally, the back pocket rivets, which had been covered in denim in 1937 due to
complaints they scratched furniture, were removed completely in the 1950s.[8] From a company
with fifteen salespeople, two plants, and almost no business east of the Mississippi in 1946, the
organization grew in thirty years to include a sales force of more than 22,000, with 50 plants and
offices in 35 countries
Levi Strauss & Co. also known as LS&CO or simply Levi's, is a privately held American
clothing company known worldwide for its Levi's brand of denim jeans. It was founded in 1853
when Levi Strauss came from Buttenheim, Bavaria, to San Francisco, California to open a west
coast branch of his brothers' New York dry goods business. In 1871, a Reno Nevada tailor
named Jacob Davis invented the work pants, combining the tough denim from Levi Strauss with
the idea to add copper rivets to key stress points. On May 20, 2006, a historic marker sponsored
by the Reno Historic Resources Commission was dedicated at 211 N. Virginia Street at the
historic location of Jacob Davis' tailor shop.
In 1873, Levi Strauss and tailor Jacob Davis received a U.S. patent to make the first riveted
men's work pants out of denim: the first blue jeans. The company briefly experimented (in the
1970s) with a public stock listing, but remains owned and controlled by descendants and
relatives of Levi Strauss' four nephews. The company's corporate headquarters is located at
Levi's Plaza in San Francisco.
ABOUT LEVI'S
Invented in 1873, Levi's jeans are the original, authentic jeans. Available in 110 countries
across the world, they are the most successful, widely recognized, and often imitated clothing
products in the history of apparel. Levi's jeans have captured the attention, imagination, and
loyalty of generations of diverse individuals. As the inventor of the category, the Levi's brand
continues to define jeanswear with the widest range of products available, from quintessential
classics, such as the iconic Levi's 501 Jeans, to favorite fits and styles in the Red Tab line,
to truly cutting-edge denim fashion epitomized by Levi's Red.
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ABOUT LEVI'S IN INDIA
Levi's entered the Indian market in 1994-95, with the opening of their first store in Bangalore
in Jun 1995. Over the last 15 years, Levi's has become the largest and most iconic jeanswear
brand in the country, available in approximately 270 exclusive stores, and 500 other points of
sale, across more than 200 towns across India. Closely associated with the evolution of
jeanswear fashion in India, Levi's has been responsible for some of the most cutting-edge,
definitive, jeanswear communication India has seen. Levi's holds the unique distinction of
having won the prestigious Images Fashion Award for the "Most Admired Jeanswear Brand of
the Year" for six years in a row.
With a product range that spans everyday-wear to extremely evolved, fashion-forward products,
Levi's has been one of the primary catalysts in accelerating the coming of age of the Indian
fashion scene. The Levi's range in India includes the iconic Levis 501 Jeans, Levis Red
Tab, and Levis Diva, amongst others.The Levi's brand has big plans for its future in India,
and is committed to firmly placing India on the world map in terms of jeanswear consumption
and creation.
Introduction of levis jeans
Founded in 1853 by Bavarian immigrant Levi Strauss, Levi Strauss & co. (ls&co.) Is one of the
world's largest brand-name apparel marketers with sales in more than 100 countries. There is no
other company with a comparable global presence in the jeans and casual pants markets. Our
market-leading apparel products are sold under the levis, Dockers and levi Strauss
signature brands. In 1873, levi Strauss and Nevada tailor Jacob davis patented the process of
putting rivets in pants for strength, and the world's first jeans levi's jeans were born.
Today, the levi's trademark is one of the most recognized in the world and is registered in more
than 160 countries.
Over the years, Levi's jeans have become more popular in particular thanks to its product
differentiation. After the release of the 501 product line, Levi's enjoyed the worldwide market
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dominance in the denim jean market. Levi's Strauss sends products in more than 110 countries.
An important thing we can notice is that customers think differently according to their
geographic situation. Indeed, for an American people, Levi's is considered as an ordinary jean.
But in Europe, the brand doesn't represent the same for customers: it represents fashion.
Actually, for European consumers, Levi's enables them to reach the American way of life.
People who wear a Levi's jean are considered as cool and fashion. Levi's Strauss & Co also
maintains its image as an originator of American jeans.
THE INVENTION OF THE BLUE JEAN
May 20, 1873 marked an historic day: the birth of the blue jean. It was on that day that Levi
Strauss and Jacob Davis obtained a U.S. patent on the process of putting rivets in mens work
pants for the very first time.
Levi Strauss, a Bavarian-born dry goods merchant, came to San Francisco in 1853 at the age of
24 to open a West Coast branch of his brothers New York wholesale dry goods business. Over
the next 20 years, he built his business into a very successful operation, making a name for
himself not only as a well-respected businessman, but also as a local philanthropist. One of
Levis customers was a tailor named Jacob Davis.
Levis Performance
Financials
Since levis is a subsidiary of the parent company Inditex, this report includes some financials
about Inditex. According to the Data monitor report from the Market line industry profile of the
american apparel retail industry profile (2008); this included charted information on Inditex
about revenues and profitability. Their revenues started in 2004 with about $8 million and
steadily rose to about $15 million in 2008. Inditexs profit margin started off somewhat low in
2004 at 11.6%, and peaked in 2007 at 13.3%. In 2008, their profit margin is back down at 12.1%.
Threats and Opportunities
LEVIS
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Some threats that affect LEVIS include international expansion, geographic scope, and intense
competition. LEVIS recognizes that the company needs to have a competitive advantage in
order to survive, so they are constructing a second distribution center in America. Also the
company is still looking to expand internationally. Expanding in Spain is difficult for the
company because of past experience in America. Levis is considering expansion in North
America, but is concerned that it is already suffering from retail saturation, less fashion-forward
sense, the demand for plus sizes, lots of competition, and not enough demand for the clothing.
Some opportunities faced by levis are expansion into other countries such as Europe focused
primarily on Italy and scale up its distribution system. If Levis continues to expand it will then
help to create a more recognizable brand name to consumers and in turn also help make a higher
profit. In the construction of the second distribution center will help the growth of the company.
SWOT ANALYSIS
STRENGTHS
High quality manpower resources
Brand name
Vast range of products and accessories
Global Image
WEAKNESS
Perceived by consumers as High Street Fashion Wear.
Price of average products higher than available competition products from local
market.
OPPORTUNITIES
Brand growth through increased consumption depth.
Growth in business for branded fashion wear and apparel.
THREATS
Aggressive price competition from local and other multinational players.
Availability of cheap copied designs / similar design apparels in local market.
Abrupt change in government policies and taxes.
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Current Marketing Strategy- LEVIS Levis is considering setting up loyalty programs to create a link with its customers and increase
the number of people that visit the stores. Also the company is heavily concentrated on
improving its logistics system which is very important to the company in having success in the
clothing industry (Euro monitor International, 2009). Levis markets towards the Euro-chic
crowd who wants more fashionable clothes with a shorter lead time. Levis produces lower
quantities of clothing, therefore the supply of their items are very scarce. levis relies more on
location of a retail establishment rather than advertising to attract customers. Only .3 percent of
sales are spent on advertising for the company compared to that of its competitors who spend
around 3.5 percent. levis is more concerned with finding the exact retail site that best suits the
company rather than spending the extra money on luring customers into the store.
Levi Strauss advertising sign
Modern jeans began to appear in the 1920s, but sales were largely confined to the working
people of the western United States, such as cowboys, lumberjacks, and railroad workers. Levis
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jeans apparently were first introduced to the East during the dude ranch craze of the 1930s, when
vacationing Easterners returned home with tales (and usually examples) of the hard-wearing
pants with rivets. Another boost came in World War II, when blue jeans were declared an
essential commodity and were sold only to people engaged in defense work.
Between the 1950s and 1980s, Levi's jeans became popular among a wide range of youth
subcultures, including greasers, mods, rockers, hippies and skinheads. Levi's popular shrink-to-
fit 501s were sold in a unique sizing arrangement; the indicated size referred to the size of the
jeans prior to shrinking, and the shrinkage was substantial. The company still produces these
unshrunk, uniquely sized jeans, and they are still Levi's number one selling product. Although
popular lore (abetted by company marketing) holds that the original design remains unaltered,
this is not the case: the crotch rivet and waist cinch were removed during World War II to
conform to War Production Board requirements to conserve metal, and was not replaced after the
war. Additionally, the back pocket rivets, which had been covered in denim in 1937 due to
complaints they scratched furniture, were removed completely in the 1950s.[8] From a company
with fifteen salespeople, two plants, and almost no business east of the Mississippi in 1946, the
organization grew in thirty years to include a sales force of more than 22,000, with 50 plants and
offices in 35 countries
Levi Strauss & Co. also known as LS&CO or simply Levi's, is a privately held American
clothing company known worldwide for its Levi's brand of denim jeans. It was founded in 1853
when Levi Strauss came from Buttenheim, Bavaria, to San Francisco, California to open a west
coast branch of his brothers' New York dry goods business. In 1871, a Reno Nevada tailor
named Jacob Davis invented the work pants, combining the tough denim from Levi Strauss with
the idea to add copper rivets to key stress points. On May 20, 2006, a historic marker sponsored
by the Reno Historic Resources Commission was dedicated at 211 N. Virginia Street at the
historic location of Jacob Davis' tailor shop.
In 1873, Levi Strauss and tailor Jacob Davis received a U.S. patent to make the first riveted
men's work pants out of denim: the first blue jeans. The company briefly experimented (in the
1970s) with a public stock listing, but remains owned and controlled by descendants and
relatives of Levi Strauss' four nephews. The company's corporate headquarters is located at
Levi's Plaza in San Francisco.
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MARKET ENVIRONMENT
Like other successful companies, Levis 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 macro environment falls to a companys marketers. More
than any other group in the company, the marketing managers of Levis are the trend trackers and
Opportunity seekers. 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 Levis are monitoring the following six major Environmental
Forces:
SEGMENTATION
Market segmentation is the selection of groups of people who will be most receptive to a
product. The most frequent methods of segmenting include demographic variables such as age,
sex, race, income, occupation, education, house old status, and geographic location;
psychographic variables such as life-style, activities, interests, and opinions; product use
patterns; and product benefits. Much segmentation involves combinations of these methods. No
matter how segments are defined, however, they are characterized by considerable change over
time. The readings in this section exemplify areas of rapid change.
TARGET MARKET STRATEGY
Target market strategy adopted by Levis is basically on having long-term relations with their
customers and to provide them with better product.
BENEFITS OF SEGMENTATION
Levis has got customer oriented approach by segmentation. Company is promoting its products
effectively within segments by print media as well as electronic media, e.g. Newspapers,
Signboards, Television commercials, Internet, etc. Company is providing their customers with
stylish better quality and different product keeping in view its cost.
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THANKS TO ITS DIFFERENT BRANDS, LEVI'S STRAUSS HAS A VERY LARGE TARGET.
A study about the age of respondent shows that 76% of 16-25 and 26- 35 age groups tend to own
more than one or two pairs of jeans which is not the case for people above 35 years old. 31%.
According to a study, what consumers like more about Levi's jean is its durability.
Thanks to what Levi's represent, consumers are willing to pay a jean more expensive that if it
was another brand. This is part because Levi's is considered as a love brand for many consumers
and as a brand that they trust: since the 60's, Levi's has appeared as a love brand because it
reaches the emotional field in the consumer mind. Thanks to that, Levi's consumers are very
loyal.
The consumer perception has evolved. At the beginning, during the 30's, Levi's jeans were wore
by cowboys. Then, after the WWII it was also wore by veterans which made the Levi's jean more
popular. At this time, jeans had a casual wear. The jean consumption has changed with the Baby
Boom: Levi's tried to have younger consumers. During the 60's and the 70's, jeans represented
rebellion for consumers and a new spirit, that's why Levi's needed to change its strategy: at that
time, Levi's was more perceived as a Mommy jeans contrarily to other jeans brand. Another
solution was to create the Levi's signature which was cheaper and more accessible.
Moreover, Levi's has a good reputation among consumers thanks to its values and its social
actions. Indeed, Levi's values are integrity, empathy, originality and courage. Levi's wants to be
ethics and social responsible in its business. For its social actions, Levi's is very engaged in the
fight of HIV: the company wants to improve the access to HIV/AIDS prevention.
CUSTOMERS FEEDBACK AND LEVIS IMAGE
The in-store feedback from consumers is sent back to designers every day. The fashion requests
collected by stores leads to the initiation of the productive process, which puts together a supply
in agreement with the customers wishes as quickly as possible. This business strategy involves
constant relations with the commercial supply and bringing personnel closer to the customer.
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Brand values, images and brand-added value cannot be evidenced directly through levis
management, but they can be reflected by customers feedback. For instance, whether levis
image is positive or negative for consumers; whether consumers see extra value add to levis; and
which values of levis they will choose. With regard to brand image, a good design or a unique
product strategy can influence it to be positive as mentioned above. While in 2007, levis
launches its first collection of maternity wear. The levis for Mum line went on sale in March in
over a hundred stores in the main cities of america and since September it has been available at
all establishments of the chain in the world with a wide range of articles.
This Mum line promotes a powerful image of levis into the minds of consumers, as it takes
consumers demands seriously and seeks to meet mothers needs and feedback. As a result, levis
improves its reputation in the fashion industry still further.
A levis Brand Identity
The Levis brand epitomizes classic American style and effortless cool. Since the invention
and patent of riveted clothing by Jacob Davis and company founder Levi Strauss in 1873,
Levis jeans have become the most recognizable and imitated clothing in the world
capturing the imagination and loyalty of people for generations. And while the patent has long
since expired, the Levis brand portfolio continues to evolve through a relentless pioneering
and innovative spirit that is unparalleled in the apparel industry.
Core Identity
Product thrust: casual and stylish.
User profile: casual and professional youth who are aggressively interested in style and trends of
fashion and lifestyle.
Extended Identity
Brand personality: Exciting, provocative, spirited, cool, innovative, and aggressive; and the
pursuit of excellence
Basis for relationship: Hanging out with a rugged, macho person who goes for the best in
clothing, everything else
Subbrands: denizen, dockers
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Logo: levis
Slogan: "Quality never goes out of style
Organizational associations:
Connected to and supportive of casuals, innovative
Endorsers:
Top Hollywood actors-Deniel Radcliffe, Denise Richards,keira knightly,
Heritage:
Developed jeans in America.
Value Proposition
Functional benefits:
High influence in fashion lifestyle and provide comfort trends.
Emotional benefits:
The exhilaration of athletic performance excellence; feeling en gaged, active, and style
Credibility
Makes performance jeans and clothing that are stylish.
BRAND IMAGES AND ADDED VALUE
Positioning and brand values that are chosen can be conveyed to consumers and form an image.
Consumers attitudes determine whether the brand image is positive, and whether the brand-
added value is high. So managers should take consumers attitudes into account when they
express their brands images and added value. levis is good at collecting consumers feedback,
because the in-store feedback is sent back to designers every day.
A brand image comprises content and reputation. The content ... refers to the associations a
brand name may invoke Some brands call up many associations. Due to the consumers
attitudes, they receives a positive image from levis (the content is high quality and modern; the
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reputation is high). Although positive or negative brand images are decided by consumers,
design and product strategy have an effect on the creation of brand images. The chic design of
levis evokes several associations such as fashionable, beautiful and colorful, and these
associations give consumers a good image, while this design with medium price enhances levis
image to be stronger and more positive. In addition, the unique product strategy of levis
promotes the brand images. Consumers deem the speed of launching a new collection of
products of levis is fast. Due to the exact data from the corporation, it produces about 11,000
different products annually, and spends four to five weeks on the process of designing a new
product and getting finished products into its stores. If the product life cycle is shortening,
consumers preferences will be fulfilled with a greater success. In 2007, This strategy improved
levis image in the mind of consumers, strengthening the brand still further.. It takes account of
consumers demand, which extends to accomplish mothers needs and feedback, and obtains a
high reputation in the fashion industry. However, A brand image gives no insight into the
relative value that consumers ascribe to attributes or associations. The concept of brand-added
value does take into account the differences in importance between associations.
Brand-added value is constituted of perceived performance (perceived quality and perceived
material differentiation), psychosocial meaning and brand name awareness, and a high level in
any one of these components leads to a high brand-added value. Owing to consumers attitudes,
the branding of levis provides them with a guarantee of quality and offers them product
satisfaction. What is more, they think levis keeps a high level of quality all the time. These views
show that levis is perceived as having high performance levels. As mentioned in the positioning
part, levis struggles to convey which social class it belongs to. So psychosocial meaning has not
a remarkable effect on levis added value. Awareness of levis name is extremely high; when
consumers hear or see this brand name, they are instantly aware that it is a fashion brand, and can
differentiate it from other high street brands. In a word, the added value of levis is high.
Therefore, a brand with positive images and highly added value can easily become a powerful
brand.
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DISTRIBUTION PLACE
There is a significant change in market distribution channel of apparel. Distribution places are:
Hyper markets
Super markets
In India there are new markets opening up and maturing fast. There are facilities like Hyper
Markets coming up in smaller towns with adequate consumer base. So brands like levis can
always find customers in cities like Kolkata, Bangalore, Chenai, Pune for their future expansion.
PRODUCT STRATEGY
Levis in India has come up with their entire product line:
Levis Woman, Kids, Men, TRF
QUALITY
It is easily identifiable that levis has better quality stock, superior design and importantly more
affordable when compared to similar retailers who appeal to the same target audience such as:
Roger David, Witchery, Susans, Portmans, Sports girl, Forever New, Bardot, and Politix.
These Retailers must innovate to regain consumer confidence. Price discounting has lost its
glamour it can no longer be reliant upon to generate sale.
PRICE STRATEGY
Levis pricing strategy is usually global and standard across globe. The difference in pricing is
due to the import and other country specific duties. But yet knowing that LEVIS productions
are all in house and in India most of their merchandize are being imported, yet they are able to
price their product below their nearest competitions that is Promode, Mango, S Oliver, Forever
New, Forever 21 etc.
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PERCEPTUAL MAPPING OF LEVIS BRAND
CONCLUSION
Levis is perceived as either an European or Middle East Brand in India and is in the lifestyle and high street segment.
The pricing for their product is yet considered to be higher than the similar local label products.
REFERENCE
www.commondreams.org
www.commondreams.org/headlines05/0416 /headlines05/0416--01.htm>.
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CIO.com
www.cio.com/article/31948/Supply_Chain_Partnersh
www.cio.com/article/31948/Supply_Chain_Partnerships_How_ ips_How_
www.businessweek.com/magazine/content/02_29/b3792068.ht
www.levistrauss.com
forbusiness.com