The World Largest Brand Name Apparel Marketers Marketing Essay

The World Largest Brand Name App atomic number 18l Marketers Marketing quizLevis Strauss and Comp either is one of the world largest shit-name app argonl marketers. Levis Strauss and Company is one of the roaring Jeanswear shop in the States States. The concept of the rivets in the jeans diverseiated Levis jeans from opposites because of its increase durability. (Levis) The Fast changes in consumer tastes, competition from both minorer and loftyer-end defects, the fast instruction in the modern distri hardlyion and gross gross revenue technology has brought about a continuing loss of market shargon. (Levi Strauss Co. Marketing Plan)Levis Strauss and friendship was established in 1873, Levis jeans are the original, authencetic jeans. They are the most triumphful, widely recognized and in truth much imitated clothing carrefours clothing harvest in the history of apparel. Over sequent generations, Levis jeans comport captured the attention, imagination and homage of diverse individuals. (Levis) As the inventor of the category, the Levis distinguish gos to define jean wear with the widest range of products available, from quint congenital class much(prenominal) as the famous Levis 501 Original jean, to favorite fits and demeanors in the passing cheque and premium collections. (Levis)1.1 MissionTo sustain responsible commercial success as a global marketing company of shuffleed apparel. They must symmetry goals of fantabulous meshability and return in investment, leading market bearings and superior product and renovations. They every(prenominal)ow conduct their telephone line ethic aloney and demonstrate leadership in satisfying their responsibilities to their intercourse and to society. (Levi Strauss Co. Marketing Plan)1.2 VisionLevis Strauss brands are fill up with examples of the key role their value occupy played in meeting consumer inevitably. Four subject matter values are at the heart of Levi Strauss Co Empathy, Originality, Integrity and Courage. These four values are linked. As Levis look at their history, a story of how Levis core values work together and are the source of their success. Likewise, Levis brands embody many of the core values that consumers live by. This is wherefore Levis brands constitute all over stood the test of time.2. ObjectiveThe objectives of Levis brand continues to define Jeanswear with the widest range of product available, from quintessential classics, such as the famous Levis Original jean, to favourite fits and styles in Red Tab and premium collections. Levis jeans postulate captured the attention, imagination, and loyalty of generations of diverse individuals. The brand has continues received critical acclaim from manufacture insiders. The brands profile is growing internation in ally. Levis Strauss and company next target focus to expand more than in contrastive city flagship line of descent.To review Levis Jeanswear market smudge of the global highlighting the militant seats and branding strategies of the market.To identify the prospering branding strategies Levis Jeanswear has employed to r from each one out its governing market mark.To evaluate on the effectiveness of Levis Jeanswear branding strategies in sustaining its gross revenue per course of actionance.3. Situation AnalysisSituation abbreviation is a marketing term, and involves evaluating the military post and fronts in particular companys market. Situation compend is often called the tether C, which refers to the three major elements that are Company, Customers, and competitor.CompanyDespite these reductions Levi Strauss Company had most of its aboriginal success because the firm was behaving monopolistically. The company patented the riveted jeans, change magnitude durability, and gaining popity.Levis Strauss Co. kept up(p) its corporeal responsible image and progressive stance on social, labor, and environmental issues, which whitethorn have long run profit opportunities.CustomersThere is many Levis Jeanswear loyalty to maintain existing customers.Levis Jeanswear is the youthfulness of their brand jeans.The 501 product line and the Red Tab collection offer jeans that appeal to younger consumers competing with the high-end jean competitors.CompetitionCompetitors successfull were able to lift out from Levis market due to heavy advert and branding. Branding was especially effective for companies like Calvin Klein that targeted high-end consumers.Levis jeans may be physically the similar as its competitor physically competitors, consumer preferences are affected by brand name.3.1 SWOT analysisLevis opportunities and threatsLevis Strauss, Levis Strauss Co. is one of the worlds largest brand-name apparel marketers with gross revenue in more than 110 countries. There is no novel(prenominal) company with a comparable global presence in the jeans and casual pants markets. straightaway Levi Strauss develops proficient hi gher doing and coordination activities. In addition, Levi Strauss overly develop overbold website is convenient for consumers shopping and overly develop impudently products and services.The constant of threats is come-at-able recession and people less potential to spend money on trend items and economic downturns in some countries. Bad economic is also an issue for Levis Strauss such as recession and the weakness of currency, people are probably to spend lesson trend items. Other than that, increasing competition from product of the higher end of the market and price wars with competitor.3.2 Value chain analysisSupport activitiesPrimary activitiesPrimary activitiesInbound logistics Inbound Logistics is the transportation cooking in one of the major business processes. In order to achieve operational excellence, increase the merger, Levis Strauss plans common sine qua nons and external traffic inbound logistics, receiving their suppliers purchase. They stored goods product ion or assembly line needs. Goods may move well-nigh the organization.Operations At this stage of product assembly or manufacturing. egotism is co-produced fashion industry packaging. The design of the packaging represents the image of Levis Strauss.Outbound logistics Collect, store and distribute the product to send along the supply chain to retail merchants in contrary countries. The retailers will send goods to outlets.Marketing and gross gross revenue The marketing communication strategies are the best ways to deliver message to consumers that Levis Strauss applied were advertise through the magazines, bill board and fashion show. Prepared to provide targeted, in order to meet consumer demand.Service To fulfill consumers desirable, that are some things should have to concern on these consumer always has dress fitness problems, thus afterward sales service is fundamental to exchange the size of Jeanswear or interchange it. Other than that, to provide stuffs training how to service difference behavior of consumers and update their Jeanswear information.Support activitiesProcurement Levis Strauss needs of all the goods, services and materials procurement. This is because for the lowest thinkable price to buy the highest fiber possible. This includes outsourcing that is usually done in-house business for the same from other companies and use of IT and ne dickensrking technology to achieve procurement goals.Technology growth The innovation of technologies helps the Levis Strauss to sustain competitive advantage. Technology is an important of the competitive advantage. compassionate resources focal point Levis Strauss is guided by a powerful growth schema in managing and developing its human resource capacity. Potential employees are evaluated in terms of their alignment to the companys winning characteristics which are directly linked to the Levis business strategies, mission and visual modality of integrity, courage, empathy and originality.Fir m infra complex body part The formal systems of planning pay quality simpleness, information focus and the structures and routines that are part of an organizations culture.3.3 blighter analysisThe remote environment comprises factors that originate beyond and usually irrespective of, any one firms operating section political, economic, social and technological factors. That environment presents firms with opportunities, threats, and constraints, but seldom does a single firm exert any important common influence.Political factor Political factor is very important to make sure the growth of the clothing industry in America States. With the peaceful environment, America States became one of the worlds attractive fashion destinations. (Easy club) frugal mover One of the main beneficiaries of the recession is the value clothing sector as consumers spend most on discretionary items with increased caution. According to verdict forecasts, America States clothing spends in 2009 had declined 0.6%. However, estimation that value clothing sales will grow by 5.0%. Grocers are expected to make promote gains in 2009 and increase their share of the value clothing market to 34.2%. In long term, the gains that grocers to be made will prove a gain threat to value clothing specialists by improving store environments and fully exploiting multichannel capabilities.Social factor Ameri stands become more enjoy fashion at present they will conservative and old-fashioned image of traditional shops. They prefer on those shops with a trendier image, such as Levis older and often affluent consumers ride out fashion conscious.Technological factor Levis have combined the four core technology are at the heart of Levis Strauss Co Empathy, Originality, Integrity and Courage, immutable and easy to care for. However, only technology on textile with other characteristics will produce, such as cellulite-reducing hosiery or moisturizing properties. Prices are likely to increase as the result of these changes in the textile technology, on that pointfore assisting in growing the value of the market.3.4 Porters 5 ForcesIndustry Competitive Jeanswear industry is characterized by small fashion 501, but on that point has been a recent trend towards consolidation and economies of scale. Businesses compete on price, quality, divergentiation and relationship with key suppliers. However, there are non many players that establish a reputation for bring style and innovation to the high street. Due to this Levis has the advantage of being a high streets retail phenomenon.Bargaining power of suppliers Suppliers do not have much bargaining the fashion industry because their products and their commercial nature of the sales forces of developed markets. Can affect the garment industry from the original commentary price fluctuations, but the change is a global determinants of supply and demand, instead than the bargaining power of suppliers caused.Bargaining power of cu stomers The buyers power is substantive in that buyers can force prices down, demand higher quality products or services, and, in essence, play competitors against one another, all resulting in potential loss of industry profits. Buyers exercise more power when they are large-volume buyers, the product is a significant aspect of the buyers cost or purchases, the products are standard within Jeanswear industry, there are few changing or switching costs, the buyers earn low profits, potential for backward integration of the buyer group exists, the Jeanswear is not essential to the buyers product, and the buyer has full disclosure about supply, demand, prices, and costs. (Reference for business)Threat of new entrants sunrise(prenominal) entrants can also expect a barrier in the form of government policy through federal and state regulations and licensing. New firms can expect retaliation from existing companies and also face changing barriers associate to technology, strategical pl anning within the industry, and manpower and expertise problems.Threat of Substituted The switch over product in fashion industry is low. Every individual needs to wear clothes in their daily activities to prevent cold and libelous to their skin. There is no substitute other than wear clothes. The only utility(a) is individual can make clothes their own but this substitute(a) rarely happen.3.5 Ansoff matrix alert production New ProductExisting MarketNew MarketIn Ansoff Matrix, Levis Strauss is currently in impersonate of market penetration as Levis Strauss intends to sell its existing markets to maintain or increase the market share of current product. This can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perchance more resources dedicated to personal selling. Other than that, increase usage by existing customer by introducing loyalty schemes the business is focusing on markets and product it knows well. It is likely to have good information on competitors and on customer needs.On the other hand, Levis Strauss also in distinguishable position of market schooling intends to sell its existing product into new markets in different countries. In this stage, Levis Strauss is facing medium-high risk in entry new market as there in many popular clothes retailer in the market. The issues of new geographical, product packaging, distribution carry and different pricing policies to attract different customer or take in a new market segments that is Levi Strauss planning to enter must also take into consideration. Therefore, Levis Strauss takes risk segmentation into different countries.3.6 Porters Generic StrategiesCost Differentiation large-mindedNarrowLevi Strauss is paining to employ preeminence schema to make Levis Jeanswear to be more common, Levis Strauss provides Levis 501 Original Jeanswear for men, women, teens, and children. Since plungeing the campaign, worldwide sales of 501 jeans have increas ed well. Although it is encouraging to see the flagship 501 line growing again, these sales increases were not incremental. So everyone is a potential customer for Levis. Levis generally appeals to more turn generations not needs spirit to make a fashion statement. Levis makes an effort to appeal to all customers in one way or another, which been a key to their success over the years.4. Evaluation of SuitabilityThe suitability of the strategic options is assessed based on their compatibility with the current competitive environment of the fashion industry, Levis own corporate resource and mission and how it would sustain or improve the competitive position of the organisation.strategic PositionConceptTo understand scheme must addressPEST place environmental Driver/ Changes in industry StructureThe remote environment comprises factors that originate beyond and usually irrespective of, any single firms operating section political, economic, social and technological factors. Tha t environment presents firms with opportunities, threats, and constraints, but rarely does a single firm exert any meaningful reciprocal influence.Porters Five-ForcesIndustry attractiveness competitive forcesPorters essential message is that where these five forces are high, then industries are not attractive to compete in. There will be too much competition and too much compress to allow reasonable profits.Value ChainOpportunities for vertical integration or outsourcingA value chain describes the categories of activities within and around an organisation, how Levis create a product or services4.1 Tows matrixLevis Strauss chosen because it demonstrates how a successful company experienced great difficulties in the early 1853, but then developed a strategy that resulted in an excellent market position in the late 2003. The TOWS Matrix shown will focus on the decisive period from late 1853 to early 2003. The external threats and opportunities pertain mostly to the situation Levis St rauss faced in the United States.Strengths (S)Brand name.Access to target market with over 300 stores nationwide.Finance and access to international capital.Distribution channel and global sourcing.Weakness (W)High costs of brand protection.Lack of control over quality.Lack of control over distribution.Distribution conflicts.Opportunities (O)Largest brand-name apparel marketers with sales in more than 110 countries.Technological growth higher production and coordination activities.Develop new product and services.A new market on website shipping.SO-StrategiesIncrease sales and supply to different countries. (S1,O1)Build technological schooling higher production and new production and services in different 300 stores nationwide.(S2, O2, O3)Create channels and website shipping to global sourcing.WO-StrategiesHigh costs of production brand in markets. (W1, O1)Lack of control in technological phylogenesis production and distribution. (W2, W3, O2)Improve distributor services and webs ite shipping benefits. (W4, O3, O4)Threats (T) assertable recession and people less likely to spend money on trend items.Competition from product of the higher end of the market.Economic downturns in some countriesPrice wars with competitorsIncreasing competition.STMeet competitors advanced design of the market. (S1, S2, T2)Economic and finance are the keys of the issue. (S3, T1, T3)Globalization increasing competitor and price wars with competitors. (S4, T4, T5)WT condense threat of competition by developing flexible product line. (W1, W2, W3, T1, T2)4.2 flush for GrowthStrategic optionTo summarises these point from earlier section and provides examples of reasons why strategy directions or might be regarded as commensurate.Strategic environmentCapabilityExpectationsMarket penetrationLevi Strauss intends to sell its existing markets to maintain or increase the market share of current product.Increase usage by existing customer by introducing loyalty schemes the business is focusi ng on markets and product it knows well.It is likely to have good information on competitors and on customer needs.Market developmentLevi Strauss is facing medium-high risk in entering new market as there in many popular clothes retailer in the market.The issues of new geographical, product packaging, distribution channels and different pricing policies to attract different customer or create a new market segments that is Levi Strauss planning to enter must also take into considerationLevi Strauss intends to sell its existing product into new markets in different countries and takes risk segmentation into different countries.DifferentiationDifferentiation strategy to make Levis jean to be more common.Levi Strauss provides Levis 501 Original Jeanswear for men, women, teens, and children. So everyone is a potential customer for Levis.Levis generally appeals to more mature generations not necessarily looking to make a fashion statement. Levis makes an effort to appeal to all customers in one way or another, which been a key to their success over the years.Ranking strategic optionsOptions are assessed against key factors relating to the strategic position of the organisation and a score or ranking established for each option.Key strategic factorsStrategic optionFamily ownershipIncreased globalizationLow-price importsIncreased of marketingGood of quality controlIncreased salesRankingMarket penetrationOXOXO?BMarket developmentXOXOXOCDifferentiationOXOOOOAO= favorable X=unfavourable? =uncertain or irrelevant.A=most suitable B=possible C=unsuitable.Evaluation of AcceptabilityThe acceptableness of the strategic options is assessed based on the stakeholders expectations.5.1 Stakeholders ExpectationsThe stakeholders of Levis Strauss are comprised of shareholders, management, employees, suppliers, contributors and the customers.The shareholders are likely to accept all the strategies as they have already witnessed Levis Strauss successful turnaround and regain of profita bility.The management built up more positive steps in achieving its vision and mission these initiatives illustrate the progress Levis Strauss have made in twist strong, collaborative relationships with their wholesale customers. To working closely with these customers and developing plans to ensure Levis brands continue to be broadly accessible to consumers despite continued retail doorstep closures and bankruptcies in the United States.On the other hand, the employees may be very clog upive of the specialism strategy and market development business simplifying measures recommended.The suppliers and contributors would have learnt by now to live with Levis Strauss differentiation strategy and market development their operations to fit themselves into Jeanswear operating style.Levis customers are likely to welcome the Jeanswear innovation capabilities with the creation of a Global Market Development Centre at their owned-and-operated manufacturing plant in different courtiers.Str ategy 1- Market DevelopmentKey stakeholdersRewards jeopardizesShareholdersHigher profit, consummation, clear direction.Unpredictable economics crisis.ManagersPerformance, targets, growth, bonus.Cultural problems.EmployeesRates of pay, high employment rate.personal credit line security, time period.Trade unionsWorking conditions, wages rate.sound requirements.CustomersMore Levis Jeanswear available.Ethical products.SuppliersHigh demand of resources.Delivery problems.GovernmentTaxation. pellucid Federal laws in certain countries.General commonJobs, involvement, sharesEnvironmental issuesStrategy 2-DifferentationKey stakeholdersRewardsRisksShareholdersHigher profit, performance, clear direction.Loss.ManagersPerformance, targets, growth, bonus.Time consume, sales volume.EmployeesRates of pay.Job security.Trade unionsWorking conditions, minimum wages.Legal requirements.CustomersMore choices, better quality and customer care.Ethical products.SuppliersHigh demand of resources.GovernmentT axation.Legislation.General publicJobs, involvement, shares.Environmental issues.FeasibilityThe feasibility of the three strategic options is assessed based on the Levis Strauss current resources.Current ResourcesThe actual resources required for the execution of the three strategies are summarized in Table 4 under four categories (1) product/service feasibility, (2) market feasibility, (3) organizational feasibility and (4) financial feasibility.Strategy 1- Market developmentKey resourcesAnalysisProduct/ Service feasibilityLevi Strauss market development intends to sell its existing product into new markets in different countries. Levi Strauss must control their product and service quality, the patent strategy to maintain its brand reputation.Market feasibilityThe issues of new geographical, product packaging, distribution channels and different pricing policies to attract different customer or create a new market segments that is Levi Strauss planning to enter must also take into consideration.organisational feasibilityThe brand and formula have to carefully intentional and properly execute. Levis Strauss able to expand rapidly takes risk segmentation into different countries.Financial feasibilityAccording to the Levis Strauss annual newspaper 2009 that company sales and profit has increased, so there are no financial problems to take for market develop strategy..Strategy 2- DifferentiationKey resourcesAnalysisProduct/ Service feasibilityLevi Strauss provides Levis 501 Original Jeanswear for men, women, teens, and children. Since launching the campaign, worldwide sales of 501 jeans have increased substantially.market feasibilityThe flagship 501 line growing again, these sales increases were not incremental. So everyone is a potential customer for Levis. Levis generally appeals to more mature generations not necessarily looking to make a fashion statement.Organizational feasibilityLevis generally appeals to more mature generations not necessarily looking to make a fashion statement. Levis makes an effort to appeal to all customers in one way or another, which been a key to their success over the years.Financial feasibilityAccording to the Levis Strauss annual report 2009, the sales and profit of the company has increased, so there is no financial problem to support franchising strategy. However, the in-store advisor service is free of charge Levis Strauss has to cover this expense from other sectors.Selection of One Strategic Option for ImplementationThe above rating data have indicated that in fact all the two strategic options are equally important and necessary for the future growth of Levis Strauss and should be implemented to the long term benefits of Levis Strauss. The complexity and risks in implementation of the two options are summarized in below.Strategic OptionImplementation RequirementsComplexity Risk(1)Market developmentInvolves higher capital injection management ingeniousness to implement in view of other competit orsHardest with higher risks(2)DifferentiationInvolves strong management will and resolve to implement. Changing staffs working attitudes and instituting a new Levis 501 Original Jeanswear for men, women, teens, and children. Launching the campaign, worldwide sales of 501 jeans have increased substantially would need a lot of patience and tact.Medium hard, needs management will and tactNaturally, among the two strategic options, the strategic option 2 should be selected as the first choice since it can be implemented quickly and getting faster results.ImplementationFrom the evaluation above, Levis Strauss select differentiation strategy to achieve their vision and mission. Differentiation strategy helps Levis Strauss to expand further more different gender and different ages to wear Levis Jeanswear and establish the brand as a fashion authority in every city. The implementation strategy can describe in three sections, which is resources management, organizational structure and manag ement of change.Key issuesAnalysisResources managementResource management refers to the misadventure under discussion is a factor. Levi Strauss has confirmed that the factor is the most likely way to work. Levi Strauss can use the budget or other performance management tools to study the effectiveness of differentiation strategy.Organizational structureIn this stage Levis Strauss has to deal with issues regarding levels of hierarchy, together with structural form and style of management. trouble of changeSome management of Levis Strauss might not aware of the need for changes in strategy implementations. Thus Levis Strauss must review the speed, scope and style of the changes, in order to obtain full commitment to them.The company kept up(p) profits by providing a wide range of products, capturing new markets and increasing its market shares. The company created barriers to entry by patents and trademarks, and by differentiating its product from generic jeans. However as more firm s entered the market, the company started losing customers and incurring losses. The upstart companies captured time out market shares from Levi Levis s immense market domination. Despite this reduction of sales, Levi Strauss Co. maintained its corporate responsible image and progressive stance on social, labor, and environmental issues, which may have long long-run profit opportunities.ConclusionThis report had analyzed the situation and the growth strategy of Jeanswear line of Levis Strauss. The evaluation of the suitability, acceptability and feasibility had examined on chosen options. The options are products and services development and differentiation strategy. The strategy chosen is differentiation strategy to achieve the mission and vision. The launch of differentiation strategy helps Levis Strauss to expand their business effectively and efficiently.By react quickly to emerging trends, Levis Strauss has become a successful fashion retailer within the shortest possible le ad times to carve out a reputation for its ability.