Marketing and Levis Strauss

Company Description

According to the Levis Strauss website (2013), the Levi Strauss brand became an established jean company in 1873 when they manufactured the first pair of blue jeans in San Francisco, CA. The company is comprised of Men’s, Women’s, Jr.’s and Children’s clothing. This company is engineering more than jeans this present day and now is including shirts, shoes, etc. Today the company’s headquarters is located at 1155 Battery Street in the Levi’s Plaza in historic San Francisco, CA. Within less than ten years this company has created a different line for the Plus Sized Woman with Curve ID in addition to the plus sized jeans for women that already exist. This company will focus on customer wants and needs so that the organization can distinguish its product(s) from competitors’ offerings. (Lamb, Hair & McDaniel, 2012). (p.6). This marketing plan will present a new idea for several more defined fits of jeans for the everyday full figured women in their existing Women’s Plus Sized Jeans line.

Business Mission

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As found on the Levi Strauss website (2013), the company’s mission statement is as follows. “The Levi Strauss Foundation advances the human rights and well-being of underserved people touched by our business by taking courageous risks, supporting innovative community partnerships, and promoting the practice of good corporate citizenship.”

Company Values

According to the Levis Strauss website the company has four values or are a part of the company’s code of ethics. Ethics is defined by Lamb, Hair & McDaniel (2012), as "the moral principles or values that generally govern the conduct of an individual or a group" (p. 31). Levis Strauss’s values include Empathy, Originality, Integrity, and Courage.

• Empathy — walking in other people’s shoes. Empathy begins with paying close attention to the world around us. We listen and respond to the needs of our customers, employees and other stakeholders.
• Originality — being authentic and innovative. The pioneering spirit that started in 1873 with the very first pair of blue jeans still permeates all aspects of our business. Through innovative products and practices, we break the mold.
• Integrity — doing the right thing. Integrity means doing right by our employees, brands, company and society as a whole. Ethical conduct and social responsibility characterize our way of doing business.
• Courage — standing up for what we believe. It takes courage to be great. Courage is the willingness to tell the truth and to challenge hierarchy, accepted practice and conventional wisdom. It means standing by our convictions and acting on our beliefs.

Unique Selling Proposition

Levis Strauss is a well-known brand that has been around for over 100 years that delivers a durable long-lasting jean to men, women, and also children. This jean is not merely known for its endurance and heavy duty quality but its fashion as well. This marketing proposal presents an exclusive opportunity for Levi Strauss to acquire an innovative style of jean for their curvy women’s line now called Curve ID. The fresh jean features a button flap that fits snuggly behind the waistline of the jean. The advantage of the flap is that it supports the waistline which seems to be a problem area for women with the assistance of three different button holes. This feature could also accommodate all jean wearers not just the curvy women. This new design of jean will appeal to women of all ages and not target one generation of people. This feature will be popular from the tweens to the baby boomers. A target market is a defined group that managers feel is most likely to buy a firm’s product (Lamb et al., 2012). The great fixation of these jeans is if you decide to eat that burger or if you decide go large on that order of fries you are still able to fit your jeans properly without feeling too overstuffed or crammed The slogan: Upsize your meal and still fit your skinny jeans. Global Vision

Now the trusted brand Levis Strauss serves in a different way of even more comfortable and durable fashion. Our goal is to expand our products to fit to any body and to suit their individual lifestyles worldwide.

The Marketing Environment

The geographic market chosen to test market the new Levis Strauss prototype is the City of Atlanta, GA. The reason Atlanta was chosen is because of the several different body shapes that the women in that location have. The Market research department has conducted primary secondary research with a bit of primary data to identify characteristics of the external environment that may provide opportunities or threaten the success of this new product from Levis Strauss. Through the collected data results we use a field service firm that specializes in interviewing respondents on a subcontracted basis to determine the necessities of the consumer. Lamb, Hair & McDaniel (2012). (p.149).

Social Environment

American Values: According to Lamb, Hair, and McDaniel (2012), “a value is a strongly held and enduring belief “(p.41), which Levis Strauss can also be defined as. This establishment also endures through value with a significance of high quality, reliable and the trusted brand name. Being that Levis Strauss is already a trustworthy brand this new prototype will contribute in marrying and broadening to the entire target market. This brand will prove that even in a slow recovering economy quality will remain the number one choice.

Lifestyle Changes: While more of the population is becoming more occupied throughout the day the fact of the matter is that “Research shows that the percentage of people who say they never have enough time to do all that they need to do keeps increasing”, states Lamb, Hair, and McDaniel (2012, ). (p.42). Hence more time is spent consuming food outside of the household for more convenient meals. Due to less time in the day more people’s waistlines are increasing which creates more body shapes in addition to the regular sized women. This prototype will help in comforting that extra cushion added on to the modern lifestyle change in the world.

Demographic Environment

Generation Y: According to Lamb et al. (2012), “This is the most ethnically diverse generation the nations has ever seen.” The Gen Yers also realize that if they are going to work hard for a lifetime, they should find something that is meaningful to them.” (p.43). This demographic appreciates working hard and purchasing quality with their hard earned dollars. Purchasing the durable quality brand will bring a sense of fulfilment to the generation.

Generation X: According to Lamb et al. (2012), Gen Xers are also avid buyers of the latest clothes, technology, and recreational products. Gen Xers want frankness, client service, reliability, and authenticity. If retailers aren’t true to their word, they quickly lose their Gen X customers.” (p. 44). This delivers Levi Strauss the opportunity to generate more followings from the Generation Xers because of their already well-known reliability.

Economic Environment

Consumers’ Income: According to Lab et al. (2012), “After adjustment for inflation, the median household income in the United States in 2010 was projected to be approximately $52,000. Thirteen percent of college-educated workers earn six figure or more. Over a lifetime, an individual with a bachelor’s degree will earn twice as much total income as a nondegree holder. Along with the “willingness to buy,” or “ability to buy, income is a key detriment of target markets.” (p. 46). Levis Strauss is a reasonably
priced brand with a heap of choices under $80.00. Also for the household of less than $52,000 there is adequate selection under $60.00 and regularly have clearance pieces as well.

Inflation: According to Lamb et al. (2012), “Inflation is a measure of the decrease in the value of money, generally expressed as the percentage reduction in value since the previous year, which is the rate of inflation." (p.47). Inflation could pose an actual threat to the Levis Strauss brand as it could any company. The recent decrease in the value of the American currency may alter our sales in the future if the economy doesn’t get any better.

Technological Environment

Social Media: In the past 10 years or more the internet has changed the way consumers make purchases. No longer does the consumer have to get the entire household dressed and into the family car to head to the department store or now even the grocery store to shop. Facebook is one of the largest social media sites that allow not only sharing with their community but allow brands to consistently advertise through this channel. This is a huge opportunity that will assist in the promotion of the new prototype.

Market Research: Through surveys, polls, etc. to grant the consumer the power to advise the company on what they desire from our brand Levis Strauss will be able to determine their consumer’s preferences or necessities. According to Lamb et al. (2012), “Use marketing research to find out what customers like and dislike about your products and competitors’ products. (p.49).

Political Environment

Government regulations: According to Lamb et al. (2012), “Federal laws that affect marketing fall into several categories of regulatory activity: competitive environment, pricing, advertising and promotion, and consumer privacy. “ (p.49). Even though Levis Strauss is a durable long lasting brand and has a century of history this company remains to serve the
community with affordable prices in the competitive fashion environment.

Robinson-Patman Act of 1936: Prohibits charging different prices to different buyers of merchandise of like grade and quantity; requires sellers to make any supplementary services or allowance available to all purchasers on a proportionately equal basis. (p.50). Levis Strauss has a set pricing range that is extremely competitive in the retail market which is also a popular trait to consumers. The consumers purchase quality at an even better monetary value.

Competitive Environment

Apple Bottom Jeans & Baby Phat: The two companies Apple Bottom Jeans and Baby Phat were created for a more urban and or curvy women that had a problem properly finding and fitting a jean that for their body type. These companies have not been blessed with the longevity of Levis Strauss, but are creating a huge following for the Generation Yers who make up the most ethnically diverse generation as stated above; also the Generation Xers who are avid buyers of the latest clothing. According to Lamb et al. (2012) “Recent research shows that more African Americans than ever before are achieving the American dream. In 2011, there were 2.8 million African Americans earning more than $75,000 annually. (p.46).

Customers

According to Lamb et al, (2012), “The consumer decision-making process does not occur in a vacuum. On the contrary, underlying cultural, social, individual, and psychological factors strongly influence the decision process. These factors have an effect from the time a consumer perceives a stimulus through post purchase behavior” (p. 84). The Levis Strauss Company has a following of loyal consumers that expect long lasting quality. These jeans are able to suit the cultural, social, individual, and psychological needs of all our consumers. This new prototype will appeal to new and existing consumer buying behaviors or habits.

Culture

According to Lamb et al, (2012), “What people eat, how they dress, what they think and feel, and what language they speak are all dimensions of culture" (p. 85). America is a huge melting pot with different ethnicities that make up a diverse culture as a whole. One phenomenon that appears to remain true to every American is the fact that large majority of us love to wear jeans and may have at least 4 pairs if not more hanging in our closets or tucked away in our dresser drawers. For this reason the prototype will be an impressive addition to the Levis Strauss brand.

Social

According to Lamb et al, (2012), “Social class is typically measured as a combination of occupation, income, education, wealth, and other variables” (p. 88). The great thing about these jeans are that they can suit any class of woman wether she is a part of the upper-class, working-class, middle-class, or blue-collar social class. Due to the quality and durability of the fabric used with every jean this affordable prototype will be available to every woman.

Individual

According to Lamb et al, (2012), “Human behaviour depends largely on self-concept. Because consumers want to protect their identity as individuals, the products they buy, the stores they patronize, and the credit cards they carry support their self-image” (p. 95). With over 100 years of customer satisfaction Levis Strauss has come up with yet another way to assist every women to feel self-confident in their overall appearance.

Psychological

According to Lamb et al, (2012), “Motives are the driving forces that cause a person to take action to satisfy specific needs. (p.97). In this case Levis Strauss is targeting the woman that has a few additional pounds or whose bodies fluctuate regularly. Once the prototype is released every women will see the necessity in purchasing it. The flap will allow them to securely cover there extra pounds and boost their self-esteem.

Market Segmentation

The information collected through the results of the external environment benefit our understanding of consumer behavior via various segments to pinpoint and identify our exact target market. One market segment profile was created as the most likely to be profitable and risk averse in the marketplace.

The female population of Generation X and Y will be more likely to purchase these jeans due to acknowledgement of the brand quality.

Due to less time in the day more people’s waistlines are increasing which creates more body shapes in addition to the regular sized women. This prototype will help in comforting that extra cushion added on to the modern lifestyle change in the world.

Women that purchase this prototype will become loyal to it be able to wear different styles on a daily basis.

Target Market

The multisegment targeting strategy is an ideal approach for Levis Strauss new prototype. Levis Strauss is dedicated and concentrating on providing all women of all income levels with quality comfortable jeans. With the need of this prototype it will be beneficial for Levis Strauss to cannibalize some of the sales of existing products to introduce the new fit to the marketplace. Lamb, Hair & McDaniel (2012). (p.134). This market segment profile entitled “Even If You Have A Few Extra Pounds Be Comfortable” is the primary target market for the Levis Straus Comfortable Life product line.

Positioning Strategy

The position strategy of Levis Strauss is to emphasize the comfortable and modifiable new jean. Consumers will not have to worry about feeling bloated or crammed in their jeans anymore. This comfortable jean will allow them to complete an entire day without having to unbutton to relax. According to Lamb et al. (2012), “Product differentiation this position strategy will individualize this product from those of competitors” (p.135). The drive of this product will prove to women that they can still be comfortable at any weight they reach which will differentiate this prototype in the clothing market.

Marketing Strategy

The popular jean brand by Levis Strauss is known for its long lasting durable products. Within the last 10 years Levis has added the new jean prototype for women of curves and more recently the department named Curve Id that suits women’s needs of various curve shapes. The new Plus Size Women’s line will include the following cut types with various colors and prints:

• Skinny
• Boot cut
• Flare
• Straight fit

The purpose for this new prototype is to provide a comfortable long lasting affordable jean for women that are Plus Size or in need of the flap which provides extra comfort when they don’t exercise or want to upsize their meals. Basic Elements of the Brand: Levis Strauss is known worldwide for being one of the top choices for durable jeans in the clothing industry. A brand that has high awareness, perceived quality, and brand loyalty among customers has high brand equity (Lamb et al., 2012). Customers that already purchase the Levis brand are familiar with the quality and will make purchases with ease. Once Plus Sized women realize through product identification that Levis has expanded their fits for them this will create a new brand loyalty or a consistent preference for one brand over all others (Lamb et al., 2012). Once in the Levis new prototype Plus sized women will feel more confident knowing that they are in quality. Adaptor Category: The new prototype for Levis Strauss will attract early adopters as well as the late majority. The early adopters will more than likely be the majority that have prior experience with the Levis brand and will adopt early on the products new lifecycle. Early adopters are a new product’s best friends (Lamb et al., 2012). The late majority will be those who will wait for their friends the early adopters to take the new product on a test run first. They depend mainly on word-of-mouth communication rather than on the mass media (Lamb et al., 2012). With the world wide popularity and strong brand name it will not take consumers long before they adopt the new prototype from Levis Strauss.

Features and Benefits: The most important benefit of the new prototype from Levis is that Plus Size Women do not have to compromise style and affordability to be dressed in a quality brand name. The flap feature that will be identified through this product will allow women of a larger size to fit jeans suited to their size and adjust if needed throughout their day if needed. Another benefit will be the various jean cuts, colors and patterns that will attract the entire market of fashion forward women.

Packaging and Labeling: The packaging for the new prototype of jeans will follow suit with the Levis brand. It will have the card board tag with Levis printed on it. The label will still be the red tag on the back pocket of the jean.

Service Characteristics and Relationship Marketing: Plus size women are urged to go to the website and print off a coupon to purchase their first prototype at 30% off. Once on the website they can also find their local Levis retailer and proceed to visit to try on and feel how comfortable the jeans fit.

Place

The new prototype from Levis Strauss will be distributed through the same channels that the existing Levis brand products are sold through. The Levis brand is distributed to their retailers and wholesalers and this prototype will follow suit.

Marketing channels: The new prototype from Levis Strauss will be distributed by the marketing intermediaries’ retailers and wholesaler channels. As illustrated by Lamb et al., (2012), producers use direct channels to sell their products directly to the consumer and the wholesaler.

Channel structure: Levis Strauss has direct relationships with its retail partners. An example of those retail partnerships include JC Penny, Kohl’s, Walmart, Macy’s, Nordstrom, Barney’s, J Crew, Men’s Wearhouse, and Urban Outfitters to name a few. Levis Strauss uses strategic channel alliance a cooperative agreement between business firms to use the other’s already established distribution channel which according to Lamb et al., (2012) are proving to be more successful for growing businesses than mergers and acquisitions. (p. 208).

According to the Levis Strauss website the company host in store presentations to continue to upgrade and expand the brand in their retail store channels. For example in 2008 their new on-floor presentation for the U.S. Dockers men’s business included new products and fits was tested at 100 locations during the second half of the year. Sales volume increased significantly.

Distribution intensity: Being that Levis is an already global brand this prototype will be distributed through the intensive distribution level which is geared towards the maximum market coverage as stated by Lamb et al., 2012. “The manufacturer tries to have the product available in every outlet where potential customers might want to buy it”. (p.210).

Supply chain management: Levis Strauss is prominent for their supply chain management since the early 2000s after partnering with Walmart and adopting their stringent supply chain rules according to the University of San Francisco (Retrieved June 2, 2013). Levis uses integrated information technology systems to track products and provide “real-time data” on manufacturing, distribution and inventory levels. (Retrieved on 06/04/13). Lamb et al., 2012 states “The goal of supply chain management is to coordinate and integrate all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, ultimately giving supply chain managers “total visibility” of the supply chain both inside and outside of the firm.” (p. 217).

The seven key areas of the supply chain method that Levis Strauss focuses on are customer relationship management, customer service management, demand management, order fulfilment, manufacturing flow management, supplier relationship management, and product development and commercialization. (Lamb et al., 2012) The four more important business process for Levis Strauss’s new product line include customer relationship management (CRM), customer service management, demand management, and product development and commercialization.

The customer relationship management (CRM) allows companies to prioritize their marketing focus on different customer groups according to each group’s long-term value to the company or supply chain. (Lamb et al., 2012, p.219) Using CRM will allow the marketing department to make this new prototype a priority and get it through the supply chain and out to a new set of customers. Once getting the prototype on the retail shelves for consumers the next process customer service management will commence. “The customer service management process presents a multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced. Customers expect service from the moment a product is purchased until it is disposed of.” (Lamb et al., 2012, p. 220).

After receiving customer feedback weather positive or negative Levis will be able to determine the actual demand for the new prototype. The demand management business process will be important to manage “supply and demand throughout the supply chain by anticipating the customer requirements at each level and creating demand-related plans of action prior to actual customer purchasing behaviour” (Lamb et al., 2012, p. 220). Once the consumer data has been collected and Levis Strauss understands the consumer’s concerns on the new prototype we can govern if any tweaks may need to be made either in the design or our approach to reach to reach the target market. Last but not least the product development and commercialization process, “includes the group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms. The end result will be another long-lasting addition to the company and will in turn maximize product life, efficiency, profitability, and reduce costs.

Managing logistics: Logistics is the process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to pint of consumption. (Lamb et al., 2012, p. 222). Levis has a very meticulous distribution process as the products are produced in the factories and distributed to their wholesale and retail channels. Their supply chain consists of the following logistical components: “sourcing and procurement of raw materials and supplies, production scheduling, order processing, inventory control, warehousing and materials handling, and transportation.” (Lamb et al.).

References

1. Levis Strauss & Co. Key Facts (n.d.). Retrieved May 23, 2013, from, http://www.levistrauss.com/sites/default/files/librarydocument/2011/4/levi-strauss-co-2011-fact-sheet.pdf
2. Lamb, C. W., Hair, J. F., & McDaniel, C. (2012). MKTG5. Mason, OH: South-Western, Cengage. Supply Chain Management Changes Helped Levi’s Avoid Losing its Shirt. (n.d.). Retrieved June 2, 2013, from, http://www.usanfranonline.com/levis-supply-chain-management/ Values & Vision (n.d.). Retrieved April 19, 2013, from,
3. http://www.levistrauss.com/about/values-vision Who We Are (n.d.). Retrieved April 19, 2013, from,
4. http://www.levistrauss.com/about/foundations/levi-strauss-foundation/who-we-are Curve ID (n.d.). Retrieved June5, 2013, from,
5. http://us.levi.com/family/index.jsp?categoryId=13158259&cp=3146849.3146880&ab=leftnav:women:plus:leviscurveid:seeallcurveid:13158259

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