“THE LEVIS COMPANY”

PROJECT REPORT
Submitted for the award of the degree of the requirement for the award of the degree

of

BACHELOR OF BUSSINESS ADMINISTRATION

COMPUTER APPLICATIONS (BBA CA)
BY
DHINESH BABU (22102015)
Under the Guidelines of
Ms SUBHASHENI A MCA., M.Phil. ( Ph.D)
Assistant Professor
Department of Management Sciences

Affliliated to Bharathiar University

Approved by Government of Tamil Nadu, AICTE and UGC New Delhi
Reaccredited ‘A+’ Grade by NAAC. An ISO 9001:2008 certified institutions
SNR College Road, Coimbatore.
APRIL 2023
 CERTIFICATE

This is to certify that the project report, entitled,“A STUDY ON THE LEVIS COMPANY”
Submitted to the Bharathiar University, in partial fulfilment of the requirements for the award of
the DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION WITH COMPUTER
APPLICATIONS, is a record of original project work done by DHINESH BABU (22102015),
during the period April 2023 of his/her project in the Department of Management Sciences, SRI
RAMAKRISHNA COLLEGE OF ARTS AND SCIENCE (Formerly SNR Sons College-
Autonomous), Coimbatore – 641006, under my supervision and guidance and the project report
has not formed the basis for the award of any Degree / Diploma / Associate chip / Fellowship or
other similar title of any candidate of any University.

Date:

Head of the Department Signature of the Guide

Date Viva-voice Examination held on ___________________________

Internal Examiner External Examiner

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 DECLARATION

I / We DHINES BABU (22102015) hereby declare that the project, entitled, “A STUDY ON
THE LEVIS COMPANY” submitted in partial fulfilled of the requirements for the DEGREE
OF BACHELOR OF BUSINESS ADMINISTRATION WITH COMPUTER
APPLICATIONS is a record of original and independent research work done by me during the
period April 2023, of his/her project in the Department of Management Sciences, SRI
RAMAKRISHNA COLLEGE OF ARTS AND SCIENCE (Formerly Snr Sons College -
Autonomous), Coimbatore – 641 006 and it has not formed the basis for the award of any other
Degree / Diploma / Associate ship / Fellowship or other similar title to any candidate of any
University.

Date: Signature of the Candidate

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 ACKNOWLEDGEMENT

This project would never have been the light of this day without thehelp and guidance I have
received from the following persons.

I sincerely thank our Principal and Secretary Dr BL SHIVAKUMAR Ph.D who had given me
the opportunity to undergo my project.

I extend my Gratitude to the Head - Department of Management Sciences – (BBA CA), Dr.
GUNASHEELAPRABHU K MBA., M.Phil., Ph.D., for his valuable support.

I extend my Gratitude to my guide Ms SUBHASHENI A MCA., M.Phil. ( Ph.D) Assistant

Professor. Department of Management Sciences, Sri Ramakrishna College of Arts & Science
(formerly SNR Sons College) for his support and guidance.

I thank Librarian of Sri Ramakrishna College of Arts & Science (formerly SNR Sons College)
for his support and guidance.

I also extend my Gratitude to the faculty members of Department of Management Science, for
their Guidance throughout my completion of project.

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 PRINCIPLES OF MARKETINGS
Levis

GROUP MEMBER:

M. Zeeshan Bhojani
Bilal Tariq
Maham Umar
Hamna Naved

Contents
Acknowledgement.......................................................................................................................................6
Letter of Transmittal....................................................................................................................................6
Background-History....................................................................................................................................8
Background-Company Growth....................................................................................................................9
Background-Time Line..............................................................................................................................10
Successes-Expansion.................................................................................................................................11
Successes-Positioning................................................................................................................................12
Organization..............................................................................................................................................12
Levis Pakistan Promotional Activities.......................................................................................................13
Marketing Mix of Levis.............................................................................................................................16
PRODUCT ATTRIBUTESPRODUCT ATTRIBUTES........................................................................16
Comfort..................................................................................................................................................16
Durability...............................................................................................................................................16
PROMOTION...........................................................................................................................................17
Objectives:.............................................................................................................................................17
SWOT.......................................................................................................................................................18
Strength..................................................................................................................................................18
Weakness:..............................................................................................................................................18
Opportunities:........................................................................................................................................19
Threats:..................................................................................................................................................19
Competition-Effect....................................................................................................................................20

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Competition-Strategies..............................................................................................................................22
Competition-Premium Jeans......................................................................................................................22
Solutions-Advertising................................................................................................................................24
Solutions-Alternative.................................................................................................................................25
Responsibility-Background.......................................................................................................................26
Responsibility-Sweatshops........................................................................................................................27
Responsibility-Environmental...................................................................................................................28
Views on 4Ps:............................................................................................................................................29
Price:......................................................................................................................................................29
Placement:.............................................................................................................................................29
Promotion:.............................................................................................................................................29
Situation Analysis......................................................................................................................................29
Industry Analysis...................................................................................................................................29
Brand Analysis.......................................................................................................................................30
Different ways in capturing more opportunities in the market...................................................................30
Overcome the problems in the strategy and 4Ps........................................................................................30
Conclusion.................................................................................................................................................31
Recommendation.......................................................................................................................................31
References.................................................................................................................................................32

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Acknowledgement

In the Name of Allah, the most Beneficent and Merciful.

Firstly, we are grateful to Almighty Allah for His utmost graciousness and help
throughout our work. We bow our heads in front of our Lord on the successful
completion of our term report.

We are profoundly indebted to our course faculty, Sir EJAZ MIAN, whose
enormous support, mentoring, guiding principles and constructive disparagement
has enabled us to accomplish this task. Without her constant check and immense
determination, we would not have been able to complete our term report.

“THANK YOU SIR”, for you sheer mentoring and enlightening our morals and
intellect for good. We put forward our profound gratefulness for your support and
generosity.

We are also indebted to Institute of Business Administration for providing us with

an opportunity to augment our skills and rationale through such projects.

Lastly, we extend our appreciation for our group members for their cooperation;
collaboration and fortitude without which we could not have consummate the task
by the dead line.

Hopefully, this report will lead to the positive reception and commend for our hard
work.

Letter of Transmittal

Mr Ejaz Mian
Course Instructor

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Institute of Business Administration (IBA)
Karachi.

May 18, 2015

Respected Sir,

We hereby present our project report “Levis Inc”. This report identifies the
Background, Marketing environment, SWOT analysis, and target market of the
product. The Information has been collected through survey and books from
library, all material used in the report has been acknowledged properly. Secondary
data used in introduction, history and past image of brand, recommendations,
strategy and SWOT analysis were made by us.

It was a truly difficult task but we have tried to do our best to make this report after
conducting thorough research, which involved much help from the internet, books
and survey, which provided us with tremendous amount of information. This report
has given us a great opportunity to add to our knowledge and learning. We hope
that this report will be good enough to come up to your level of expectation and
requirement, and will be helpful to the society in general.

We are very thankful to you, for guiding us at all levels and being a very kind and
patient teacher; and helping us in all the endeavors and difficulties that came
across.

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Fig 1.1 The Levis Company logo

Background-History

The company was founded by Levi Strauss in 1853 primarily selling wholesale dry
goods. The company was founded in San Francisco, California.

A tailor named Jacob Davis thought of an idea to use copper rivets to reinforce the
points of strain on pants.

Davis and Strauss purchased the patent of the idea of using copper rivets in
clothing on May 20, 1873.

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Fig 1.2

Background-Company Growth

The innovation of the rivets in the jeans differentiated Levidifferentiated Levi’’s

jeans from others because of its increased durability.

Over the years, LeviOver Levi’’s jeans have become more popular, initially due to
its durability. Jean products expanded, targeting different consumers.

Levi Strauss & Co. eventually captures most of the denim jean market, becomes
the largest manufacturer of jeans, and profits reach $1 billion by 1974.

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 Fig 1.3
Background-Time Line

•1853: Levi Strauss begins selling dry goods in San Francisco.

•1873: Levi Strauss & Co. patent riveted jeans and begin selling them.
•1912: Koveralls, denim playsuit for children, , is first nationally sold product for
the company.
•1935: Company sells first blue jeans for women.
•1940s: U.S. government issues denim work clothes for employees in the defense
industry.
•1974: Company sales reach $1 billion
•1986: Company introduces Dockers as a new casual line of clothes new clothes

Successes-Monopoly

Since the patent of the rivets in jeans in 1873, the company achieved monopoly
power.

Monopoly power was gained through entry barriers.

• The patent granted the firm monopoly rights to sell riveted jeans.

Also by product differentiation

• The rivets on the jeans allowed for longer durability, a form of vertical
differentiation.

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Product differentiation and barriers to entry allowed the company to gain more
popularity and market share.

Successes-Expansion

•By 1977, Levi Strauss & Co. is the world largest jean manufacturer.
•Department stores and boutiques sell Levi Department Levi’s products and are
additional channels of distribution for the company.
•LeviLevi’’s provides a wide range of products that target different market
segments, capturing demands.
•After the release of the 501 product line, Levi after Levi’s enjoys worldwide
market dominance in the denim jean market.
•Levi Strauss & Co. maintains it Levi its image as an American Icon and the
originator of American jeans.

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Successes-Positioning

Other marketing strategies, like the position of the product, other created increased
differentiation, contributing to the company’s market power. In 1930s, the
company survived the Great Depression due to increased interest in Western
culture.––Jeans were positioned as being worn by ““cowboys.””

Levi’’s jeans were issued to employees in the defense industry (including veterans)
during World War II.(II.––Post World War II, veterans that went to college wore
Levi Post Levi’s jeans on campuses, increasing popularity.

WWII veterans were regarded as heroes.––Jeans were shown to be suitable for

casual wear, rather than worjean––During the Baby Boom era, Levi during Levi’s
targets younger consumers and positions product as ““cool.””

Early movie stars wore Levi Early Levi’s jeans. An example of celebrity
endorsements endorsement

Consumer demand shifts from durability of jeans to fashion of Consumer

jeans .ans.––Culturally, jeans became symbol of youth and rebellion culturally,
rebellion••In 1960s, student protesters wore jeans as uniform

In 1970s, company sells bellbottom jeans. The firm positioned its products with
changing times and changing demands, keeping existing customers and capturing
new markets. Increases in sales ultimately increased profits

Fig 1.4
Organization
Levi Strauss & Co. is a worldwide corporation organized into three geographic
divisions: Levi Strauss Americas (LSA), based in the San Francisco headquarters;

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Levi Strauss Europe, Middle East and Africa (LSEMA), based in Brussels; and
Asia Pacific Division (APD), based in Singapore. The company employs a staff of
approximately 16,000 people worldwide. Levis has head office in 2800 company
operated stores worldwide.

Levis Pakistan Promotional Activities

Levis Pakistan offers different types of promotional activities throughout the year,
the basic purpose behind all the promotional activities is to promote their new and
existing products, through which they seek consumer attention.

Different types of promotional activities include

• Print advertisement
• Hoarding
• Newspaper
• Online ads
• Social media campaign
Recently Levis Pakistan conducted Telenor Pakistan Fashion Week 2015 in
collaboration of Fashion Pakistan Week (FPW) which kicked off on Tuesday at
Pearl Continental Hotel Karachi where Levis showcased their amazing CT 501
collection on the 3rd day of Fashion Pakistan Week featuring the legendary Wasim
Akram.

There were also some other A-list fashion designers who rocked the runway on
first day of FPW Spring/Summer 2015 with their most exclusive collections.

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Fig 1.5

Fig 1.6

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Levis Pakistan also offers Pre-season and Post season discounts on selected
products at various stores in different cities.

Fig 1.7

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Marketing Mix of Levis

The Levi Strauss Signature™ brand was launched in 2003 exclusively for
consumers who shop in the masschannel. The brand gives value-conscious
consumers access to high-quality, affordable and fashionable jeans wear from a
company and name they trust. The Levi Strauss Signature™ brand includes a
collection of denim and non-denim pants, shirts, skirts and jackets for men, women
and children all designed with the high quality.

PRODUCT ATTRIBUTESPRODUCT 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
LS&CO.’S products
-Variety
-Features
-Design
-Color
-Size

Features are competitive tools that differentiate the company’s products from its
competitor’s products .Following are some of the main and distinctive features of
Levi’s products.

Comfort
Levi’s jeans and other products are comfortable enough to be worn even at the
times of protest, war Cultural Revolution, relative peace and pure fun.

Durability
The two figures on the patch of Levi’s jeans with whips in hand pulling in
opposite directions, yet the jeans remain intact; symbolize the strength and
durability of the ‘Patent riveted clothing’.
Style
Clothing means more than just fabric, thread and rivets. To clothe oneself means to
put on something that symbolizes who you are. Levi’s jeans are available in
different styles for men and women.

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PROMOTION
Promotion objectives: Promotion

Objectives:
To inform, persuade and remind the potential customers about its products
Increase awareness and build primary demand

To build strong brand equity.

Build Company’s image as innovator.

To create bonds between public and Levi Strauss by helping the people.

To create the importance of its product

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SWOT

Strength
1. Strong Brand Name and popular top-of-the-mind brand

2. Expertise in Jeans Industry

3. Distribution Channels and Global Outsourcing

4. Finance and Access to International Capital

5. Has over 470 self-operated stored globally managed by 16000+ employees

6. Levi’s marketing includes retro popular songs in its TVC ad campaigns

7. Over 60 and 25 manufacturing plants in US and abroad respectively

The foremost strength of the company is its brand name. Being the oldest brand for
clothes and having invented the blue jeans, the company enjoys an elated status in
the eyes of the people, and therefore people prefer buying Levi's goods, assuming
that they are a perfect blend of design, comfort and reliability. Also the brand is
considered to be a status symbol for the upper class, so they tend to go for it.
Moreover, the advertising campaigns tend to choose energetic and enthusiastic
themes so as to target the youngsters specially.

Weakness:
1. High Pressures of Brand Protection

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2. Increasing competition means limited scope for growth

3. Customer loyalty has declined

4. Retail sales of Levi's Jeans are declining

5. Nine plants have been shut since 1982.

Industry of apparels and clothing is such an industry in which, each day, many new
people are attempting to step. With so much of external competition from new
business and already established companies, it is too difficult for Levi's to maintain
its brand image. It needs to be exclusively competent and keep on inventing new
styles to stay ahead of the competition. Price is also a weakness factor for the
company, because of as compared to other competitors, Levi's jeans are much
more expensive, because of which, and the people from the middle class refrain
from buying it.

Opportunities:
1. Growing casual wear market

2. Low manufacturing and production costs in various international markets

3. Increasing acceptability of western wear across the world

4. The customers becoming more leisure-oriented and wearing jeans more often

5. Levis Strauss more commands 43% of the market in jeans

6. K-mart, Wall-mart and other retailers do not currently sell Levi's jeans

Formerly, western clothes were not acceptable in eastern countries. However, with
the introduction of new century, the clothing pattern, in fact, the culture has
entirely turned its patterns. Today, western clothing is widely accepted in most of
the countries. A growth in the market for western clothes means a growth
opportunity for Levi's

Threats:

1. Fast changing consumer tastes

2. Lack of protection of property rights in some countries like China

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3. Increasing Competition and Product Substitution

Customer is the king of the market. Without customers, there is no use of business.
The industry of clothing is an industry where customers actually form the
dominance, regardless of existing monopolies. This compels the businesses to be
competitive and compliant to the public demands. Fast changing customer tastes
are a serious threat to the company.

A cut-throat competition is also existent between Levi's and Lee, Wrangler,

Spykar, etc. A slight mistake may leave Levi's out of the competition. However,
there is yet much to be explored by the company.

Competition-Effect

Levi Strauss & Co. was threatened by competition, because Barrie Levi barriers of
entry were relatively low in the jean market. (Excluding the patent) Some
of LeviSome Levi’’s competitors include:
––Calvin Klein
––Gap Jeans Gap Jeans
––VF Corp (Lee, Wrangler)
––Tommy Hilfiger Tommy

The entrance of new competitors had many effects on Levi the Levi’’s. ––
LeviLevi’’s no longer has monopoly power > more competitive prices >lower
profits lower profits
––Availability of substitutes >firm faces increase in elasticity of demand firm
demand
––Consumers prefer other brands. Levi Consumers Levi’’s customers buy from
competition lowering Levi lowering Levi’’s market share.
These newer upstarts are able to ““chip away chip away” ”at Leviat Levi’’s market
dominance because they are able to capture segments.––VF Corp captures low VF
low--end jean consumers; Calvin Klein captures highend high--end consumers.

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Fig 1.8 Fig 1.9

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Competition-Strategies

Competitors successfully were able to take from Levi Competitors Levi’’s market
due to heavy advertising and branding. Branding was especially effect effectivities
for companies like Calvin Klein that targeted high for high--end consumers.

Some of the marketing strategies that competitors like Calvin Klein Some Klein
used to differentiate their product and brand included:––Celebrity endorsements
(Calvin Klein and Brooke Shields)––Up-to date European product designs (low
date low--rise, tighter)––Advertise jeans as ““designer. Designer.””

These advertisements were used as a barrier to entry, because of these of spurious

product differentiation. Although Levis pure Levi’’s jeans may be physically the
same as its competitor physically competitor ’’s, consumer preferences are affected
by brand name.

In addition to the idea of branding, Levin Levi’’s largest consumer market were
Baby Boomers, and by the time competitors increased in the 1980s, the
Levi1980s, Levi’’s brand was perceived to be ““mommy jeans”. This reinforced
the more youthful perception of other brands.

Fig 2.1
Competition-Premium Jeans

LeviLevi’’s failed to recognize and enter a new and booming premium jeans
market, originating in 2000 and led by brands such as Seven For All Mankind,
True Religion, and Rock & Republic.

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Levi executives themselves admitted failing to see the premium jeans trend, and
the company was forced into radical cost radical cost--cutting, closing dozens of
factories and laying off thousands of workers.

The premium jeans market has over the last five years largely driven the growth of
an otherwise stable jeans market, as premium jeans sales grew at a 40market, 40--
45% rate for multiple years. Levi for Levi’’s failure to adequately respond to this
trend was a large part of its posting declining sales in nine out of ten years prior to
2007.

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Solutions-Advertising

Fig 2.2

With the rise of competitors and decrease in brand image, Levi Strauss & Co.
makes use of edgy advertisements.
• Brand Loyalty
Many of Levi Many Levi’’s ads stress brand loyalty to maintain existing
customers. The word ““original”” is used many times.––Some TV ads are set in
the late 1800s, stressing the historic value of ads the company.
• Brand Image
At the same time, Levi At Levi’’s ads stress the ““youthfulness” ”of their brand
jeans.––The 501 product line and the Red Tab collections offer jeans that appeal t
to younger consumers competing with the high to high--end jean competitors.––
Television advertisements are more innovative and target younger Television
youngercrowds.crowds.

http://www.youtube.com/watch?v=CSG807d3P
http://www.youtube.com/watch?v=skWFyop_pxU&feature=relatedhttp://related
http://www.youtube.com/watch?v=W-
SZN1VRIl4&feature=relatedSZN1VRIl4&related

• These marketing strategies however did not help with the worldwiThese
worldwide de decrease demand for jeans. This implies that other clothing is
becoming a substitutable good for jeans.

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Solutions-Alternative
Although Levi Strauss & Co. had worldwide market dominance in the 1980s after
the release of 501 product line, profits continue to fall due to: (1) Decrease of
demand for jean products
(2) More competition.
In 1996, revenues were reported at $7.6 billion and a U.S. market share of 18.7%.
By 2001 revenues drop to $4.25 billion and U.S. market share of 12.1%.In order to
maintain revenues, the company releases the LeviLevi’’s signature jeans.
• This product line appeals to the low this low--end consumers.
• Decrease in demand for jeans causes market price to drop, so consumers
want cheaper jeans.

In 2002 Levi Strauss & Co. makes an agreement with largest retailer Wallargest
Wal--Mart as a supply Mart supply--chain strategy to mass chain mass--market
consumers.
• Levi’’s Signature brand to be sold in Walls Wal--Mart stores exclusively
This was an excellent strategic move because Wal This Wal--Mart was
making large sales while Levi was Levi’’s could not keep up in sales. This
had potential to benefit both parties.
• By 2002, Wal by Wal--Mart was #1 in the Fortune 500 rating.
• Levi Strauss & Co. was ranked #383 in 2002.
Although this partnership was a success, Levi Strauss could not offset the
slowdown in the aggregate denim jean market, continuing to loss profits.
 2008 Rating for Levi2008 Levi’’s: 522 from previous 510  Profits
continue to fall.

Forced to re re-evaluate itself by years of declining sales, Levi’s has been able to
find some degree of success with primarily the introduction of the Signature line
and a large large-scale streamlining of costs and it it’s business. Levi’s is also

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being helped by its international presence and is currently being benefited by
impacts from the global currency exchange market, as the company benefited from
the weak dollar.

The company is still trying to find a way into the lucrative premium jeans market,
introducing a new premium line and hiring famous artists to liven up the brand.
Competitor VF Corp. decided to purchase seven for All Mankind as their market
entry.

Fig 2.3 Fig 2.4

Responsibility-Background

Levi Strauss & Co. is a family owned worldwide corporation with headquarters in
North America, Europe, and Asia.
The company is vertically integrated, meaning it owns/has owned factories for
every level of production for the jeans.
The company employs about 10,000 people worldwide.

Historically Levi Strauss & Co. is recognized as a caring and corporately

responsible company.

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After the 1906 San Francisco earthquake, the company continued to pay workers as
it was rebuilding factories and buildings.
During the Great Depression, the company kept workers busy installing new floors
in factories rather than fire them.
•Levi Strauss & Co. has also taken the lead on social issues.
–During the 1940s, the company desegregated its factories bringing white and
black workers together.
–In 1980s, the company was very involved in educating people about AIDS
providing $37 million to HIV/AIDS services.
–One of the first companies to extend healthcare to their workers workers’
‘spouses.

•Levi Strauss & Company approach to business: “profits through principles.” –"As
business leaders we have the obligation, both individually "and collectively, to
make our enterprise not only a source for economic wealth, but also a force for
positive social change in the conduct of our business. This principle of responsible
commercial success is embedded in our more than 150 150-year experience, and
continues to anchor how we operate today."
Responsibility-Sweatshops
•With increased competition from other jean producers in the 1980s and 90s, like
any profit profit-maximizing corporation, Levi Strauss & Company closed many
factories and subcontracted production.
–Subcontracted production is cost-minimizing because labor is relatively abundant
and wages cheaper.
–In order to compete with prices, subcontracting work makes sense.

•The company had 6 subsidiary factories in Saipan capital, of the U.S.

Commonwealth of the Northern Mariana Islands.––The U.S. Department of Labor
cited that workers were paid sub--minimal wages, 7 day work weeks with
12minimal 12--hour shifts in ““slave slave—like” ”conditions. The subcontractor,
Tan Holdings Corporation, had to pay a fine of $9 million as restitution to 1,200
employees.
Levi Strauss & Co. claimed no knowledge of the offense, cut Levi cut--off ties to
Tan Holdings, and issued labor reforms. In1999, Sweatshop Watch, Global
Exchange, Asian Law Caucus, Unite, and workers filed a class Caucus, class--
action lawsuit 3 times to 27 U.S. retailers, including Levi Strauss & Co. Levi
Strauss was the only defendant to win the case.

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Fig 2.5

Responsibility-Environmental

•Continuing on the approach of ““profits by principles, ”in 2006 Levi Strauss &
Co. launches the Eco clothing line.––Jeans are certified to be made from 100%
organic cotton and fully sustainable production processes. This includes cotton
untreated by chemicals, pesticides, and manufactured at sustainable carbon
emissions.––The jeans are also packed in 100% recyclable and reusable materials.
•Economic implications Economic implications––Organic jeans are more
expensive, due to the added costs to certify these genes to organic standards.––
However, discouraging the use of chemicals for cotton is a step toward the right
direction. Pesticides have externality costs to the environment and workers,
because they are mostly improperly used in poor countries. A reduction in
externalities improves social welfare.––In the long--run, sustainable production has
the possibility to being profitable.––Corporate responsibility also has long
Corporate long--run profits.
Fig 2.6

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Views on 4Ps:
The products are comfortable, durable and stylish. A customer gains complete
value preposition by paying the price of product, it perfectly satisfy the customer
demand and persuade him to experience it in the future.

Price:
The price of the products are too expensive in comparison with the other
alternatives available in the market, basically they are using their goodwill to
charge higher price for their product. Most of the customers now shifted to other
products due to their costly products.
Placement:
The distribution channel are working effectively, the products are available across
Pakistan in various stores. Different sizes of products are available in all designer
outlets.
Promotion:
Different promotional activities of Levis are successful in creating and maintaining
loyal customer relationships. Different activities throughout the year are helpful in
updating the customers about the new arrivals and preseason and postseason sales.

Situation Analysis
Industry Analysis
The apparel industry is comprised of clothing, accessories and shoes. It can be
segmented into menswear, womenswear and children’s wear. In the United States
there are about 10,000companies that combine to have a total annual revenue of
$20 billion (“Apparel Manufacture” Jan. 2010). Of the womenswear segment,
clothing held 68.4% market share in 2008(“Womenswear in the United States:
Industry Profile” Sept. 2009). Clothing in menswear held53.8% market share

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(“Menswear in the United States: Industry Profile” Sept. 2009). From 2002to 2007
the jeans market grew 28%; growth is expected to be 18% from 2007 to 2012, just
a little faster than inflation (“Jeans” Mar. 2008). The same report believes that the
growth in 2002 to2007 was “above trend” while the growth expected between 2007
and 2012 is more “normal” .Premium denim sales rose 24% for women and 45%
for men. Sales in 2007 for the jeans market was $16.7 billion, while the projected
sales for 2012 is $19.7 billion (“Jeans” Mar. 2008).Key players in the jeans market
include Levi Strauss & Company, VF Corporation, The Gap, Tommy Hilfiger
Corporation, Liz Claiborne, Inc. and Polo Ralph Lauren
Corporation. Levi Strauss led this market in 2007 with a 26.4% market share; The
Gap came in second with 23.9percent (“Jeans” Mar. 2008). In the apparel industry
key players include Levi Strauss &Company, Benneton Group, Hugo Boss, The
Gap and H&M.

Brand Analysis
Levi’s jeans are the original authentic jeans brand. Introduced in 1873 Levi’s are
the most prosperous, highly recognized and imitated clothing brand in history.
Levi’s jeans have been aniconic staple in the lives of many Americans, invented
the jeans category and continue to define the market.

Different ways in capturing more opportunities in the market

Levis can expand their business to capture various opportunities like offering
different brands of denim jeans, different brands which will target different classes
of customer, different varieties of formal pants should be introduced in the market
in order to cater personnel.

Overcome the problems in the strategy and 4Ps

They should decrease their profit margin in order to maintain their strong position
in the market. Different types of promotional activities should be introduced in
universities so that students can attract towards their products.

They should offer customer loyalty card for their premium customers in which they
give exclusive discounts on the purchases of products.

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Social Media campaigns should be launched in which they portrait their new
arrivals, discounts and other offers. Provide update to premium customers through
email and text messages.

Conclusion

•Levi Strauss & Company had most of its early success because the firm was
behaving monopolistically. The company patented the riveted jeans, increasing
durability, and gaining popularity.

•Over the years, the company maintained 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 firms entered the market, the company started losing customers
and incurring losses. The upstart companies captured niche market shares from
Levi Levi’s s immense market domination.

•Despite these 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.

Recommendation
Levis has a huge scope in the market, they have to critically analyze the customer
market and come up with relevant strategies and plans. The have to consider every
customer opinions and suggestion to create product strategies in the future. In the
coming era they have to strongly differentiate their products form their
competitor’s product. As now the customers are more updated and more conscious
about the product.

In future Levis have to improve their CSR activities, as now CSR plays a critical
role in creating profits for the company.

Levis is perceived as premium brand in Pakistan, hence an economy product range

can also tap the unexplored middle class range

Since Levis Jeans are majorly available in departmental stores and factory outlets,
reaching the customer and availing him with consumer schemes is difficult, since

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Pakistan is having a large middle class customer segment still being not exploited
can be reached through making Levis jeans available at local retail outlets.

References

Frith, Maxine. , “The Ethical Revolution Sweeping Through the World World’’s
Sweatshops. Sweatshops.” commondreams.org org. 16 April 2005. 2 May 2008
<http://www.commondreams.org/headlines05/0416 0416-01.htm>.
Girard, Kim. “Supply Chain Partnerships: How Levi Levi’’s Got Its Jeans into
Wal-
Mart CIO.com com. 15 July 2003. 4 May 2008
. <http://www.cio.com/article/31948/Supply_Chain_Partnerships_How_ L
evi_s_Got_Its_Jeans_into_Wal_Mart>.
Lee, Louise. “Why Levi Levi’’s Still Looks Faded. Faded.” Business Week Online
Online. 22 July . 2002. 5 May 2008
<http://www.businessweek.com/magazine/content/02_29/b3792068.ht htm>. m>.
“Levi Strauss & Co Co..2006. Levi Strauss & Co. 1 May 2008 <http://
www.levistrauss.com com>. >.
“Levi Strauss & Co. Co.” Wikipedia, The Free Encyclopedia , Encyclopedia. 6
May 2008. 6 May . 2008 <http://en.wikipedia.org/wiki/Levi_Strauss_%26_Co.>.
“Levi Strauss & Company – Roots in the gold rush rush” www.reference
referenceforbusiness.com forbusiness.com. 2007. 3 May 2008
. <http://www.referenceforbusiness.com/businesses/G G-L/Levi Levi-Strauss
Strauss-
Company.html html>. >. Levi Strauss Strauss’’s Corporate Citizenship Value
Proposition: Original and Authenti Authentic. c.”
Center for Corporate Citizenship Citizenship. April 2007. 3 May 2008 . <http://
www.bcccc.net/index.cfm?fuseaction fuseaction=Page.ViewPage&PageID
PageID= 1649&stopRedirect=1>.

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