MARKETING STRATEGIES AND VALUE

INNOVATION (MSVI)
FACILATATOR – ZAIN KHANDWAI

Submitted by Group 5
• Amna Badar (19565)
• Salman Zahid (18836)
• Zuhair Humza (20477)
• Abbas Mehdi (18550)
• Waliya Nadeem (28178)
• Haseeb Ayub (18933)
 TABLE OF CONTENT
S. No. TOPICS Page No.
1 EXECUTIVE SUMMARY 1
2 HISTORY 2-4
3 STRATEGIC MARKETING OF LEVI’S 4-6
4 MARKETING MIX 7
5 FLEXIBILITY AND FOCUS OF LEVI’S 7-8
6 PURPOSE AND ENDORSER BRAND 9 -10
7 SWOT ANALSIS OF LEVI’S IN PAKISTAN 10-13
8 STRATEGIES FORMULATED 14
9 BLUE OCEAN STRATEGY 15
10 ERRC & VALUE INNOVATION 15-17
11 BUYER EXPERECNCE CYCLE & STRATEGIC CANVAS 17
12 THREE TIERS OF NON-CUSTOMERS 19
12 MARKET CREATING STRATEGIES AND GROWTH VARIANTS 20
14 OPERATIONAL EFFECTIVENESS 21
15 STRATEGIC POSITIONING 21-22
16 MAPPING AND FITS 22-23
17 ANSOFF MATRIX / PRODUCT MARKET EXPANSION GRID 24-25
EXECUTIVE SUMMARY

In this report the it is discussed about Levi’s and its operations in Pakistan. This relates to both
their production side as well as their retail stores that they have in Pakistan. In this article we can
see that see that Levi’s has been operating in Pakistan for a few decades. In this the overall trend
of Levi’s is that they initially were able to take over the market of high street/ casual fashion but
they were not able to keep themselves afloat when other brands such as Outfitters, Edenrobe etc.
started up.

This article covers the marketing strategies that they have been using in the Pakistan as new brands
are also entering the market. They key topics covered are

1. Expansion in Purpose and Endorser brand

2. Flex and Focus Model
3. Strategic Marketing Framework
4. Blue Ocean Strategies
5. Value innovation Through ERRC
6. Strategic Canvas
7. Improvement of the buyer experience cycle
8. Strategic Positioning
9. Operational Effectiveness
10. Fits and Mapping
11. Along with them entering new markets

Hence, they have been using a combination of strategies to innovate new methods of production
while offering a better product to the masses that they are targeting. This puts them in a position
of Lockstep but with better operational effectiveness and stronger brands name they’re able to
overcome the market gaps that they have been facing in the last decade. Theis over all helps them
to create a blue ocean in which they do not market their product to their customers hence creating
a premium image for the brand in overall target segments.
HISTORY

Levi’s Strauss and Co are one of the world’s largest brand name in the apparel markets with sales
in more than 110 countries. They have an amazing Presence when it comes to their recognize
ability and top of mind brand recall when it comes to casual clothing and denim wear. It has
employed nearly 10,000 people worldwide. Their stocks are A grade and are traded on the NYSE.
Their sales are sizeable with an average shopper having a basket size of Rs 50000 to 60000. The
company plans to build their entire image around creating a strong image within the markets where
they operate.

Their main three geographic locations are

• Levi Strauss, North America (LSNA) – Headquarters in California

• Levi Strauss, Europe (LSE) – Headquarters in Brussels
• Asia Pacific Division (ADP) – Headquarters in Singapore

In the Middle East: Bahrain, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia and United Arab
Emirates. Latin America: Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica,
Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay and
Venezuela.

Hence in the 1990 Their production shifted to Pakistan as they were catering to these markets. This
was in context to having operational effectiveness which helped them to gain better returns while
significantly reducing their cost in the overall market. Hence, they opened up their regional head
office in Lahore where all the strategic decisions are taken.

Furthermore, after the placement of their product in that market, they shifted their focus on also
targeting the Pakistani market. The first shop that they had set up was in REX Center which was a
factory outlet and the products were offered at a comparatively cheaper price as lesser variety was
offered.

In 2011, they had also launched their line of clothing Denizen which was to cater such markets,
the value offering was to give the customers with the product that was better and had much more
affordability compared to Pakistan economy broadening their target market.
In 2016, they started to rebrand their stores from Factory outlets to outlet stores which helped them
in creating a different brand value for the company overall.

VALUES

Levi Strauss & Co. has five major core values. These are·

• Empathy
• Originality
• Integrity
• Courage
• Sustainability

These core values are the foundation of our company and define who we are. They determine how
Levi’s competes in the marketplace and how they set their marketing strategies.

MISSION STATEMENT

The mission of Levi’s Strauss & Co. is to sustain responsible commercial; success as a global
marketing company of branded apparel. They balance their goals of superior profitability and
return on investment, leadership market positions, and superior products and services. We will
conduct our business ethically and demonstrate leadership in satisfying our responsibilities to our
communities and to society. Our work environment will be safe and productive and characterized
by fair treatment, teamwork, open communications, personal accountability and opportunities for
growth and development.

VISION STATEMENT:

When LS & Co. describe the future of Levi, they are talking about a building on the foundation
they have inherited: affirming best of their Company’s tradition, closing gaps that may exist
between principles and practices and updating some of their values to reflect contemporary
circumstances

PRODUCT ATTRIBUTES

Products are usually considered to be the No.1 factor contributing towards building goodwill of a
firm. A product should be unique, durable, reliable, comfortable and economical. Following are
some of the basic attributes of

L S & Co.’s products are mainly focused on the following aspects:

• Variety
• Features
• Design
• Color
• Size

STRATEGIC MARKETING OF LEVI’S

Levi’s is the well-known name in apparel industry but whenever the name of jeans comes in our
mind the first brand which comes to our mind is Levi’s, they have been in this business of more
the decays and that’s their core strength their Denim Jeans which is not just of high quality but
fulfills each aspect of customer satisfaction.

STRATEGIC MARKETING FRAMEWORK

WHAT DOES THE MARKET LOOKS LIKE?

CATEGORY BREAKDOWN
MARKET ANALYSIS

Market of Jeans

There are number of brands in the market those who are selling jeans like outfitters, Stoneage,
Chen One and Lee Jeans most of these brands just don’t sell jeans but other items like casual shirts
and belts which Levi’s is selling, this market is mostly for Middle, Upper Middle and Upper Class
Market, but keep that in mind that there are two more brands which falls under Levi’s umbrella
introduced the Dockers brand to fulfill a niche for the baby boomer man who needs something to
fill that wardrobe gap between his 501® jeans and his business suit knowns as khakis. The Second
Brand is Denizen which offers the same range as Levi’s but the target market of denizen is lower
middle, upper middle and it completes with the major market players in local industry, unlike
levy’s it doesn’t targets niche but it targets masses.

Company Capabilities:

Company has a very strong foundation and is spread out across the world, currently Levi’s is
operating through its stores nation-wide in the major cities like Karachi, Lahore and Islamabad.

Market Dynamics:

When it comes the quality of jeans Levi’s is the market leader due to its presence and wide network
and other factors but the competition comes from HAWK WEAR, DIESEL, STONEAGE,
BREAKOUT and Outfitters. But the other brand Denizen mainly competes with the local market
brands like dinners, break out, etc.

Collaborators:

In Pakistan they are targeting niche segment of high-quality jeans they are manufacturing their
jeans with localization component of 70% and they are operating under the plant of Artistic
Milliners.
Market Selection

Market selection and segmentation: Levi’s in currently targeting denim, casual wear shirts for Men
and Women both genders market. Particularly the target market of Dockers and Levi’s is Upper
class, they don’t advertise their product but the Target market of denizen is very large.

Segment Targeting

Elite Class, Upper Middle class and Middle-class segment mainly in targeted by this brand.

Product Positioning

Unlike other brands Levi’s is not engaged in too much promotional strategies they have little online
presence and mainly operating through its stores in major cities and in areas where its target market
resides.

Competitor Product Pricing Vs Levi’s Pricing

MARKETING MIX

Product

Key products of Levi’s include denim Jeans and other than that product like casual shirts, belts
and khakis are the main product lines of Levi’s

Price

Pricing is the essential factor for the success of the product, Levi’s mainly targets the upper-class
segment so the pricing is set in accordance to that.

Place

The Placement of Levi’s jeans is mainly through stores that they have opened up in key locations
keeping in mind the footfall and the target audience. They also have an online store which helps
in targeting the customers to make purchase decisions.

Promotion

Levi’s doesn’t advertise their products via Ads but they follow a different strategy to market like
Black Friday sale and off season/outdated stock sales.

FLEXIBILITY AND FOCUS OF LEVI’S

Levi’s has focused on a younger audience who prefers high street fashion in their daily lives, casual
events and office gatherings. Levi’s enjoys upon the high quality of jeans which they are making
as the life of their product as compare to other brands is high.

When Levi’s entered in Pakistani market, they knew that they won’t really be competing with local
products, they mainly compete with brands like Caterpillar and D&G, etc. Hence the market for
high street fashion products developed and new local competitors entered the market.

But Levi’s kept its focus on conservation of water and sustainability that’s why with little to less
changes in practices took place over the years in the manufacturing of Jeans. However, the water
that was used is now recycled hence making the overall amount of water used in making the
product is significantly lesser when compared to other Brands.

It won’t be wrong to place this brand in between Lockstep and Perennial Renaissance due to the
fact they have high level of focus towards their jeans and sustainability but they aren’t flexible
enough to also focus on other line of clothing. For instance, company don’t go for new designs
within their jeans and only offer a certain range of products with in Pakistan.

The company is in a leadership position as the main policies are established from the external
stakeholders who tend to only stop a few products and the rest are exported to countries with higher
demand for the brand. Company is very sensitive with respect to the quality of the product so the
number of experiments is kept minimal as only those techniques and technologies are adopted that
are successful.
PURPOSE AND ENDORSER BRAND

The purpose of Levi’s is a shared goal of improving people's lives and positively impacting
society. Hence, their main focus started from making better jeans for the people. Hence many
products later on were produced keeping the purpose in mind as Levi’s had turned into a top of
mind product for the customers. Offering a wide range of products mostly focused towards denim.

In this when the brand kept on developing it took on a life of its own. Hence, the brand turned into
Levi Strauss & Co. Hence, its main offering remained under Levi’s as they started to sell products
such as Shoes, Shirts and T-shirts. This was an extension of Levi’s was during 1960s in which
they started to focus on more casual looks. However, with the passage of time the brand had
developed strong perceptions in the minds of the customer that the brands were indeed better in
both the quality and durability. This hence led to the charging of a premium pricing from the
customers.

Hence, in order to tackle this the brand grew from a purpose brand to an endorser brand as it
launched other brands under its wings such as Denizen, Dockers and Signature by Levi’s.

Dockers was the first

Brand that was
launched under
Levi’s. this started in
1986 with the
Khakis. The purpose
of the brand to a
launch this line of
clothing was to
explore the casual
clothing market
further but soon the brand purpose shifted from targeting them to young audience to targeting it to
office workers as a better solution for Business casuals.
Levi’s second brand is Signature by Levi’s. This brand was marketed differently globally and
hence was comparatively cheaper as compared to the original Levi’s but proved to be of equal
durability over the years. Hence, the product offered is of good quality.

Denizen, this is the last brand that Levi’s launched, initially the product was made available in the
global markets but after a period the it reached Pakistani stores as well. Here it was marketed as a
low-cost solution. But since it was endorsed by People started to associate the product with the
same quality as a Levi’s Jeans. However, the prices were comparatively lower hence it was
available for the customer belonging to an audience related to not their segmented target market.

SWOT ANALSIS OF LEVI’S IN PAKISTAN

STRENGTH:

1. Strong Brand Name: Since Levi’s is an established renowned brand has strong brand
presence and recognize globally due to which it enjoys more brand awareness than others
effortlessly.
2. Distribution Channel: Levi’s has number of outlets in almost every area to create an ease
for their customers and to target every locality of any social class and standard and these
outlets are supported by a strong distribution network that makes sure that its products are
accessible effortlessly to a large number of customers in a timely way.
3. Dealer Relationship: Levi Strauss has maintained a health relation with its dealers which
helps them in promoting company image and its products.
4. Levi’s offered products that are durable and high in quality, along features that are highly
unique and innovative as it follows high standards of quality.
5. Financial Position: for last 5 years it was enjoying strong financial scale, it was since the
COVID19 hits, it suffers losses and it survived the pandemic well all because that it has a
strong financial presence, that can be further used to accelerate the future projects as well.
6. Levi’s is Environmental focused and friendly and have consciously building its positioning
over it.
7. Process Automation: Since Levi’s is an international brand, it adopts highly advanced
technologies at different stages of production which permit them to be more efficient and
 effective by reducing cost at various stages. This also generate quality products with
minimal defects which is Levi’s main motive to offer quality, environmentally friendly and
durable products along with that it also provides the ability to scale up and scale down
production as per the demand in the market.
8. Trained and Skilled workforce: Levi’s has massively invested in the training of its
employees; they have training programs and test for their Sales person (Stylist) when they
qualified that test only then they will be allowed to be on ground. Their ever stylist is well
trained to enhanced the ever customer experience.
9. Diversified workforce: Levi Strauss has a diversified workforce, this is because mostly IT,
HR and other departmental staff are of 3rd party which came from different geographical
regions and of different culture, this helps Levi’s in bringing new ways of doings things
and new innovative ideas.
10. Product Portfolio: Levi’s has a huge product line, variety of products offerings in different
categories. Categories for every social class, status, and gender. From suits wear to foot
wear, from body care to cosmetics and from men’s accessories to kids.
11. Geographical Location: Since Levi’s manufacture in Pakistan and export it to globally, this
allows it to be cost effective in terms of production since Pakistan labor is available
comparable at low rate than others and 3rd party consultation also allows it to be cost
effective in many ways.
12. Its products have maintained quality over the years and are still valued by customers, who
find it as good value for the amount of money that they pay.
13. Collaboration: Since Levi’s do collaboration with different brands ever after 2 months like
last it did with Mickey Mouse, this gives them a leverage of any helping hand in the near
future.

WEAKNESS:

1. Rented Property: Most of the outlets of Levi’s are rented rather than owned, which is an
add up a significant portion of amount to its cost.
2. Low current ratio: The current ratio that shows the company’s ability to meet its short-term
financial obligations is 2.02 which is lower than the industry average which is 2.84. This
could mean that the company could have liquidity problems in the future.
 3. Lack of discounts Levi’s do not offer discounts, mostly products are selling at fixed prices,
which limits sale at some extend.
4. Levi’s does not provide after ales services online like free deliver etc.
5. Less investment in promotional activities: there is lacking in Levi’s marketing campaign
that they do not massively invest in promoting its brands through billboards, TV ads, and
social media advertisement. Even its website is globally maintained.
6. Premium prices of Levi’s limit the certain percentage of people to buy the products.
7. Diversification in the workforce: The workforce at Levi Strauss is concentrated with
mostly local workers, and low amounts of workers from other racial backgrounds. Lack of
diversification makes it difficult for employees from different racial background to adjust
at the workplace, leading to loss of talent.
8. A few products have a high market share, while most of the products have a low market
share. This reliance on a few products makes Levi Strauss vulnerable to external threats if
these few products suffer for any reason.

OPPORTUNITIES

1. Women section is having less consideration as compare to men section by Levi’s. This
section can be generating profitable sales can do more for Levi’s.
2. Kids section must also be given more importance to gain customers as it has been just
started a few years ago.
3. Sales and Number of customers will extensively increase if advertisements are been
focused adequately.
4. E-commerce: By Opening an online store with products available nationally instead of
globally and making online sales, it can extensively increase Levi’s revenue, as now a days
there has been a new trend and a growth in sales of the e-commerce industry.
5. As Levi’s promotes environmentally friendly products so this could be an opportunity for
Levi Strauss for the sale of Levi Strauss's products to federal and state government
contractors.
6. The government has also announced a subsidy on the sale of environmentally friendly
goods in this sector. Levi Strauss can focus on these environmentally friendly products and
make use of this opportunity.
THREATS:

1. Although Levi’s does not have as such direct competitors but it has some competitors
globally.
2. One of the most prominent threat is the decline in global cotton production. Due to which
cotton prices increases which eventually increase Levi’s raw material cost band lower
overall profit margin as denim is entirely made of cotton.
3. Technology competition and competitors is an ever-green threat to an emerging and
flourishing business.
4. The increase bargaining power of suppliers has become a threat, while the efficient
numbers of suppliers are decreasing.
5. New entrant is also been a common threat to an emerging business, as you cannot ignore
it, can take the massive market share.
6. The exchange rate keeps fluctuating and this affects a company like Levi Strauss that has
sales internationally, while its suppliers are local.
7. Political and environmental uncertainties in the country prove to be an obstacle in business,
like COVID-19 hit the Pakistani market and brutally affect the business market and
economy of the Pakistan.
8. Rapidly change in the fashion industry is itself a threat for every textile industry; this puts
a pressure to constantly change their products to meet the needs of these customers.
9. A threat comes from substitutes products are also raising day by day, which is a threat for
the whole industry and decreasing the overall consumption rate.
10. The increase awareness through promotion and advertisement of done by competitors and
offered discounts, offers, and different sales campaign is itself a big threat to Levi’s.
 STRATEGIES FORMULATED
SO, Strategy: SW Strategy:
• Environmentally friendly products should • By suing diversified and skilled
promote well along with collaborated with workforce it can charge up such cheaper
government and sell at relatively low prices. alternative was through they could be
(S6, O5) able to sell the products at reasonable
• By the use of strong brand name, Strong rates. (S8, S9, W6)
distribution channel, Product portfolio, • Using its strong financial position
diversified workforce and quality products properties could be owned in order to
women section could be focused more reduce threats coming from lend lords.
innovatively by removing an image (S5, W1)
maintained for Lev’s that it is a Male brand. • Collaboration with different brands could
(S1, S2, S9, S10, S12, O1) also be used for extensive marketing
purpose and can bring amazing sale
offers, collaborative marketing etc. (S13,
W5)
ST Strategy OW Strategy
• Use a strong distribution network to reach • Use of emerging Ecommerce business,
out to customers and fight off new entrants running nationally maintained website, with
into the market. (S2, T5) products available nationally, along with
• Use its strong financial position to invest in other online services like free delivery so
intellectual property rights. This would help that customers could afford it at reasonable
compete with increasing competition in the rates excluding tariff and other exporting
market (S5, T9) charges etc. (O4, W8, W4)
• Use of strong supplier relationship and • Increase marketing and advertisement to
strong planning could reduce the threat increase number of customers. (O3, W5)
coming from suppliers bargaining power,
supplier substitutes always be in hand. (S3,
T4)
BLUE OCEAN STRATEGY:

Value Innovation: It is the cornerstone of blue ocean strategy, as it involves the simultaneous
pursuit of increasing customer utility and lowering cost incurred by the business, resulting in a
leap in value for both customers and the
business.

Levi’s collaborates with other brands from

time to time to offer trendy limited-edition
products. Some of these collaborations
have come with Pokémon, Mickey Mouse,
and Hello Kitty etcetera. Moreover, Levi’s
focuses on providing superior quality products such as ‘Levi’s Cool’ and ‘Levi’s Flex’. These
products are engineered with super breathable and flexible fabrics which allow people to stay cool
in summers or provide flexibility for high performance activities. These collaborations and
superior features differentiate Levi’s from its competitors.

Moreover, Levi’s also focuses on eliminating costs in its production processes. They make use of
sustainable practices in their production process which lowers their costs. One of the main raw
materials, i.e. water, is used less in their production process in comparison to competitors as they
are the pioneer of jeans production. Water is also recycled for jeans production (approximately 12
out of the standard 14 liters used). Moreover, they also recycle plastic and use it to make other
items such as shoes, jeans, bags etcetera. All these initiatives lower business costs of Levi’s.

ERRC:

The ERRC Model of Levi’s defines the position of their strategies in order to break the value-cost
tradeoff and where is the gap of improvement.

Eliminate:

• Levi’s has eliminated this perception that it is only a brand for the elite socio-economic
class through its large network of outlet stores.
 • Levi’s must stop renting out outlets. Levi’s mostly rented out its outlets which are cost-
controlled by the landlord. During the Covid-19 situation Levi’s were demanded by the
landlords of certain outlets like Gulistan-e-Johar and 5-star Chowrangi to pay double the
rent as before because they were not earning from anywhere else. Initially Levi’s paid but
then they closed those stores and Levi’s had to flush out inventory to other outlets, scatter
the employees’ etcetera which also costed them. As a big brand, Levi’s should purchase its
outlets.

Reduce:

• Reduce non-profiting SKUs that are not selling well in Pakistan due to high price, e.g.
belts, cross-body bags, slippers etcetera.
• They can reduce strictness on policy regarding returns and exchanges by not asking for
receipt.

Raise:

• Levi’s can raise Marketing plan or effort in Pakistan. Levi’s does not market itself in
Pakistan through billboards, TV commercials, and social media etcetera to engage the
Pakistani market.
• Levi’s can raise the range and variety of products being offered. At the moment outfitters
offers more variety in jeans and shirts, and it also sells items like hoodies and sweatshirts
which Levi’s sells internationally but does not sell in Pakistan.

Create:

• Levi’s can offer “Reward Points” system which provide customers with a certain amount
of points on every online or offline purchase according to the size of the purchase. This
will provide an added incentive to customers to repeat purchase from Levi’s.
• They can create a mobile application. Currently Levi’s Pakistan sells online only through
a website called akagalleria.com. Pakistan has 42% mobile penetration which is highest in
South Asia and a mobile app enables customers to checkout products and deals more
frequently as the app sends notifications on the screen. Even if notifications are off it’s still
 more accessible than manually opening a website; therefore, a customer with the app is
usually more aware.

BUYER UTILITY MAPPING AND STRATEDY CANVAS

The buyer utility acts as tool which allows us to visually map out the entire customer journey
against certain criteria. It highlights the red ocean which the entire industry focuses on and the blue
ocean areas which Levi’s offers in the market.

The red ocean focus is currently in the levers of Customer Productivity and Variety in the
‘Purchase’ stage of the buyer experience cycle. This is because everyone is focusing on competing
on lower prices by offering more and more discounts, promotions etcetera. They also look to offer
more types of jeans, shirts etcetera to appease and cater more people.
On the other hand, the Blue ocean areas offered by Levi’s are in the levers of Features, Fun and
Image, and Durability in the ‘Use’ stage of the buyer experience cycle. This is because Levi’s
offers products which have features that are unrivalled such as “Levi’s Cool” with breathable and
wicking fabrics, and “Levi’s Flex” with extremely flexible fabrics. As Levi’s is a huge global
brand, customers generally feel special while using it as compared to other brands such as
Outfitters and Stoneage. Levi’s denim is also more durable as it lasts more washes and a longer
period of time before it fades out.

STRATEGY CANVAS
THREE TIERS OF NON-CUSTOMERS

Current Market

They are currently offering the products to the Upper middle and Elite class as their average
shopper spends up to Rs 60,000 in their visit to the shop.

Soon to Be

In this we can consider the existing customers who are buying brands such as Outfitters and stone
age and due to their high conversion rates, they are able convert most of the shoppers. However,
the foot fall in the stores increase during offers as there are more people who are looking to get
discounted products.

Refusing

Since their offering is Focused on the High street fashion hence with in Pakistan there is a sizeable
market which does not got for their products. And prefer traditional outfits. Keeping this in mind
they will never shop at their stores.

Unexplored

This customer segment is comparatively hard to find as in Pakistan they have not expanded into
the kids’ section, hence the market remains unexplored. Furthermore, they do not have any market
offering in formal wear in readymade garments.
MARKET CREATING STRATEGIES AND GROWTH VARIANTS

Levi’s Pakistan has followed a non-disruptive growth strategy by introducing cool gel jeans which
have two characteristics. In summers the fabric of jeans becomes cooler and in winters the fabric
becomes warmer. Therefore, in summers the jeans are not hot but instead give a cool feeling and
the opposite is for winters. Since the largest target market and the most revenue generating market
for Levi’s is Karachi, therefore the non-disruptive strategy of cool gel has been very successful.

• Redefining and solving an existing industry problem:

The jeans with cool foam are introduced mainly for the problem that in jeans as it is fit to
the skin, it is hotter to wear and so the introduction solved the problem of customers that
they now will feel colder in hot weather and hotter in cold weather. For the purpose that
weather in Pakistan is hotter, shalwar and kurta is the ultimate dress, but as cool foam jeans
is introduced, the jeans lovers would consistently use jeans instead of kurta shalwar.
• Value Innovation:
The Levi’s brand provides the most comfortable, versatile and authentic jeans because of
which customers only prefer Levi’s jeans. The style and comfort cannot be delivered by
any other competitor. This is known as value innovation.
• Identify and solve a brand-new problem and opportunity
The problem of customers was that jeans has a certain washable life that is it will fade its
color after certain amount of washes. Levi’s introduced an opportunity for customers that
he or she can give the torn and faded color jeans to Levi’s tailors and they can make
beautiful purses, bags, shoes etc.
The buying experience at Levi’s stores is also very comfortable as the main important
points that is the front, sales, cash and fitting points are best monitored and stores are
located in a way that gives best buying experience

The major reason why most middle class and elite class prefer Levi’s is not because of
technological change but because of value innovation. In 2015, Levi’s introduced “Well thread
garments” in which the single-fiber board shorts and jackets are 100% recyclable. The Jacquard
jacket was connected with Google which is although not introduced in Pakistan is the best example
of non-disruptive creation and innovation.
OPERATIONAL EFFECTIVENESS

Operational effectiveness refers to short-term practices by companies that allows them to

outperform their rivals in relation to efficiency and better utilization. These also include
promotions, discounts and deal.

Levi’s Pakistan engaged in operational effectiveness by offering:

• Levi's Denizen Resolution Day Sale- Up to 40% OFF on the entire stock;
• Levi's Independence Day Sale! Flat 50% OFF
• Levi's End of The Season Summer Sale- Avail Up To 50% OFF
• Denizen Black Friday Sale! up to 60% off on entire stock for limited time
• 15% Off with Levi's Pakistan Factory Outlet

Furthermore, they ensure that they have an easy to navigate store layout. In this they keep Denizen
in front of the store. Since most of their promotions are in front / Entrance of the store.

This is also common practice that they tend to have a number of stylists (Sales Representatives) in
the shop who are trained to intercept the customers and are trained to understand who can be their
potential buyer.

STRATEGIC POSITIONING

1) Strategic Positioning is about being different by delivering unique value to customers. Three
kinds of strategic positioning with examples of Levi’s Pakistan are:
i. Variety based positioning: This is when a company specializes in a particular activity
and providing a variety of products under its name. For example, Levi’s is the leader
in jeans and denim products in Pakistan providing the best quality jeans collection
whose life is higher than that of its competitor (Outfitters). They have innovated and
moved towards sustainable model with their Water < Less initiative and they’ve saved
more than 3.5 billion liters of water from the finishing process and recycled over 5
billion more. By 2021, at least 80% of Levi’s jeans will be finished with Water < Less
techniques.
ii. Needs-based positioning: This is when the company serves most needs of group of
customers with tailored needs, and activities that involve customization. Levi’s offers
 customization services like patching your jeans, adding panels to your jeans, tapering
and cropping your jeans, and customizing your trucker jacket. Along with that, Levi’s
factory outlet offers wholesale prices on all its products, making it easier for people of
all classes to buy.
iii. Access-based positioning: This is when a set of activities are used to reach customers
in the best way and increasing their level of convenience, this can be based on either
geography or customer-scale. Levi’s offers online shopping feature and enhanced it
further in the face of COVID-19.

TRADE-OFFS

This refers to when one company forgoes one segment to specialize in another. Levi’s Pakistan
has traded-off traditional eastern wear for specializing in denim wear.

Along with this, In Pakistan they have traded off their kids’ section, although they manufacture
kids clothing but due to a smaller market, they don’t keep stock in Pakistan

Also, they have traded off many stores that had low revenue per sq. ft. This was for both
operational effectiveness as well as value reducing the factor of cost.

MAPPING AND FITS

The Mapping Activity System (MAS) highlights a company’s core strategies, and link them with
activities designed to carry out those strategies.
The first order of Fit is simple consistency between activities and the overall strategy. For Levi’s,
examples of level 1 Fit are: high life of jeans, and affordable prices of Denizen these features link
to the overall strategy of Levi’s providing best quality sustainable denim.

The second order of Fit is when activities are reinforcing: these include shop online feature, sales
on articles, and the better cotton initiative, along with reminding the customer that the product is
long lasting at the time of purchase. Hence it creates a perception that the jeans that is being bought
will last longer as compared to other brands. These activities reinforce customers to keep using
their articles as discounts and products made keeping environmental safety in mind appear rather
appealing.

The third order of Fit is optimization of efforts, this includes activities that aim to reduce cost for
the company. For example, by using thermalized fabric for jeans, their articles can be worn in both
weathers, winters as well as summers. They are warm in cool season and cool in summers. Also
offering services such as denim DIY, or patching and repairing jeans of customers saves the cost
and makes it viable and abide it to their overall strategy of sustainability and long life of jeans.
ANSOFF MATRIX / PRODUCT MARKET EXPANSION GRID

Market Penetration:

Levi’s is practicing all the strategies to always stay on the list of top brands. Levi’s have different
discount brackets in its multiple categories of different brands like currently it is offering Flat 25%
to 70% off on ALDO products, Flat 40% off on Mango, Flat 20% to 60% off on Splash Flat 40%
to 60% off on Women’s Secret and so on., so that it can cater the market of every class.

Product Development:

Levi’s constantly bring innovation into their existing products like Levi’s Cool Eco performance
with advanced fabric, that will keep your body warm in winter and cool in summer, light in weight,
more comfortable and environmentally friendly, Levi’s Pokémon, Levi’s Loose jeans, Levi’s
Sculpt + Sustainable which embraces the body and planet too, in Women section. Levi’s is focused
in making quality products that are environmentally friendly and more sustainable with less water
or through recycling of water bottles. All of their products are less harmful to the planet than others.

Levi’s have entered into related diversification by entering into foot wear for male and women
both. This too has a limited range of products available for the masses within Pakistan

Market Development:
Initially Levi’s have entered into the men’s section only while operating in Pakistan with their
Levi’s Brand. Later on, it also started to offer Women Western Clothing which were existing
products but were exported.

Levi’s have open up stores geographically in major locations focusing on the footfall to create an
ease for customers, to intercept and convert their shopper coming to that market place, to equalize
the demand and supply of products at all places and to fulfill the requirements of every locality
according to their taste and preferences like in Karachi it have an store in Malir for the customers
who live in Malir, Site Area, Airport and Model Colony customers, here they have focused more
on their Denizen Brand as it has the lower middle class and middle class audience.

Hence keeping the different demographics and the propensity to spend the Levi’s have opened up
stores in other cities of Pakistan such as Lahore, Hyderabad, Islamabad and Multan.

Diversification:
Fragrances and Beauty & Care section. Levi’s have wide variety of products in beauty ranging
from face to Skin care, Fragrances for male and women both. Thus, all this expansion is counted
in fashion industry hence it will come under related diversification.