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LEVI’S STRAUSS & CO.WE INVENTED BLUE JEANS
TARGET MARKET LEVI’s specifically targets customers falling under:
a) Upper Class
b) Upper Middle Class
• It emphasizes more on the age group of 13-24 (youngsters), although it has its product range for people with above 30 yrs age.
• Its strategy is basically on having long-term relations with their customers by designing jeans, shape, color, and cloth so that fun mix and match clothes with accessories in style of fashion
• In 1930’s Jeans were positioned as being worn by “cowboys”.
• Consumer demand shifts from durability of jeans to fashion of jeans.
– Culturally, jeans became symbol of youth and rebellion
COMPETITORS & SEGMENTATION APPROACH
• Threatened by competition, because barriers of entry were relatively low in the jean market. (excluding the patent).
• Some of Levi’s competitors include:––Calvin Klein, Gap Jeans ,VF Corp (Lee, Wrangler),Tommy Hilfiger.
• The entrance of new competitors had many effects on Levi’s.
• More competitive prices leading to lower profits
• Availability of substitutes firm faces increase in elasticity of demand
• Consumers prefer other brands Levi’s customers buy from competition lowering Levi’s market share.
• These newer upstarts are able to “chip away” at Levi’s market dominance because they are able to capture segments.
• VF Corp captures low--end jean consumers.
• Calvin Klein captures high--end consumers
COMPETITORS & SEGMENTATION APPROACH
Premium Jeans
• Levi’s failed to recognize booming premium jeans market, originating in 2000 and led by brands such as Seven For All Mankind, True Religion, and Rock & Republic.
• Company was forced into radical cost--cutting, closing dozens of factories and laying off thousands of workers.
• The premium jeans market has over the last five years largely sales grew at 40--45% rate for multiple years.
• Posting declining sales in nine out of ten years prior to 2007.
• With the rise of competitors and decrease in brand image, Levi Strauss & Co. makes use of edgy advertisements
COMPETITORS & SEGMENTATION APPROACH
• Brand Loyalty––The word “original “is used many times.––Some television ads are set in the late 1800s, stressing the historic value of ads the company.
• Levi’s, Dockers, Denizen and Signature brands which are trusted .
• Recognized for their quality, integrity and originality.
• Levi’s and Dockers denim and khakis set a standard by them.
• The quality craftsmanship and premium fit in family clothing have made Signature brand a benchmark.
• Denizen brand as jeans for new generation .
DETERMINING THE COMPETITIVE FRAME OF REFERENCE
Competition
• Lee
• Wrangler
• Pepe Jeans
• Spykar
CATEGORY MEMBERSHIP
• Why do you wear Levi’s?
• What makes us different?
POINTS OF PARITYAccessibility
Convenience
Variety
Quality
Fitting jeans
POINTS OF DIFFERENCEAuthentic
Original
Innovation
Premium price
POSITIONING MATRIXBRAND TARGET
GROUPCONSUMER NEEDS
COMPETITIVE FRAME
BENEFIT
REASON WHY
BRAND CHARACTER
Levi’s 13 to 30, Urban, Lifestyle, Trend
Comfort, Style statement, Fit, Trendy
Levi’s Strauss & Co.
Pepe Jeans, Spykar
Style, Comfort, Quality
Authentic, Innovative, Reliable
Original, High quality
Spykar 16 to 30 Comfort, Style statement, Fit, Trendy
Spykar
Levi’s, Pepe
Style, Trendy, Quality
Fashionable, Value for money
Young,Vibrant
Pepe 16 to 25 Comfort, Style statement, Fit, Trendy
Pepe
Levi’s, Spykar
Style, Quality
Very trendy, Great comfort
International,Hip
Wrangler 12 to 30 Comfort, Style statement, Fit, Trendy
Wrangler
Levi’s, Spykar
Fit, Stitch
Trendy, Value for money
Rugged,Very reliable
POSITIONING APPROACH• “Your Levi’s, Your Style”
• Comfort, Fit and Style
• “We Invented Blue Jeans”
• Innovative and trendy
• Classic yet modern
• Best quality
• Dynamic
EVALUATION OF POSITIONING• Precise, effective and clear
• Image of great comfort and style
• Pioneer in denims
• Brand ambassadors
• Strong message
• Specific segment positioning
THANK YOU
Presented By:Aadil Ahmed (01)
Abhijeet Chowdhary (03)Abhishek Sharma (05)
Akshay Gopal (07)Ankur Dave (10)
Arushi Goswami (18)