Levi's Brand and Product Strategy

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An analysis of Levi's brand and product strategy, plus a recommendation for future strategy.

Transcript of Levi's Brand and Product Strategy

Page 1: Levi's Brand and Product Strategy

Anyarat Priyawat Ching-Hui Chen Erin Morrison Francis Ramos Kathryn Klopp

Sona Martirosian

Page 2: Levi's Brand and Product Strategy

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.

Page 3: Levi's Brand and Product Strategy

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

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CURRENT TARGET MARKETS

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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

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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

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FREEDOM TO BE CONFIEDNT

EXPRESS YOURSELF AND

BE ACCEPTED BY SOCIAL PEERS

ACCEPT YOURSELF AS YOU ARE AND EXPRESS

YOUR CONFIENDCE

EMOTIONAL BENEFITS

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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.

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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

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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.

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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

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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

SIG

NIT

URE

BR

AND

Trend Initiators

Trend Influencers

Early Adopters

Traditional

Value Driven

$145 - $220

$48 - $110

$35 - $48

$27 - $30

$Under $30

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Levis

Seve

n

True Rel

AG

Rocawear

Sean

John

0

100

200

300

400

Levis

Wran

glerSe

ven

Lee

True Rel CK AG

Rag &

BoneDise

l

Baby P

hat0

200

400

600

800MEN’S DENIM MARKET PRICING WOMEN’S DENIM MARKET PRICING

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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.

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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

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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

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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

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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

MENX X X X X X X X X X

WOMENX X X X X X X X X X

BABIES& TODDLERS X X X X XTWEENS

X X X X X XTEENS

X X X X X XSHOES

X X X X XACCESSORIES X X X X X X

SWIMWEAR 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

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TRENDY

CLASSIC

AFFORDABLE EXPENSIVE

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FASHIONABLE

FUNCTIONAL

HIGH DURABILITY

LOW DURABILIY

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URBAN

HIPSTER

EXPENSIVEAFFORDABLE

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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

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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.

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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

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Thank You