Levi's is a privately organised clothing company known worldwide for its 'Levis' brand of denim jeans. It was founded in 1853 when Levi Strauss came from Buttenheim, Franconia, (Kingdom of Bavaria) to SAN FRANCISCO BAY AREA, California to open up a west coast branch of his brothers NY dry out goods business. Although the company commenced producing denim overalls in the 1870s, modern jeans were not produced before 1920s. The business briefly experimented (in the 1970s) with worker ownership and a open public stock listing, but remains had and managed by descendants and family of Levi Strauss' four nephews.
2. 0 Products
The main and first products are Jeans, they can be trousers made from denim. The American blue jean was created by Jacob Davis and Levi Strauss in 1873. Jeans, formerly created for work, became popular among teenagers starting in the 1950s. Historical brands include Levi's, Lee and Wrangler. Jeans come in a variety of types, for example, slim jeans, boot cut, or flare.
Jeans are actually a very popular form of informal dress about the world, and have been so for many years. They come in many styles and colors; however, "blue jeans" are specifically identified with American culture, especially the American Old West. Us citizens spent more than $14 billion on jeans in 2004 and $15 billion in 2005.
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S. W. O. T Analysis
Strength
Levi's enjoys high brand equity. People all around the world identify the brand name.
Levi's products are unique and progressive in the style.
A whole lot of variety is offered by Levi's ranging from sunglasses to skirts and shirts.
The products are renowned and are believed as the utmost durable i. e. the resilient products.
Levi's follows a higher standard of quality.
Weaknesses
Levi's products are believed as very expensive. Therefore a big percentage of folks are hesitant to buy the products.
As no discount rates can be found and products are sold at fixed prices many customers are lost.
Levi's does not provide any services like free delivery etc.
Opportunities
Levi's can do more well in the women section. This section is give less importance as compared to the men section.
The kid's section, which includes been began from couple of years, should also be given proper focus on gain customers.
Sales promotion can be increased by increasing the adverts expenses to be able to enjoy a big quantity of customers.
Threats
Competitors.
Perceptual Mapping
The perceptual map presents a geometric comparability of how competing products are identified.
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3. 0 How people end up buying Levi's (consumer decision making).
Decision making can be regarded as an end result of mental techniques (cognitive process) leading to the selection of a course of action among several alternatives. Every decision making process produces a final choice.
3. 1 Need Popularity
Usually buying begins with need acknowledgement. This is actually the first stage of the buyer decision process, where the consumer recognizes a problem or need. The necessity can be induced by interior stimuli. The basic consequences, needs or values that consumers want to accomplish or gratify are called end goals. Some end goals represent more concrete, tangible effect: other end goals tend to be more abstract. For instance, a purchase decision to replace a bulb for a flashlight probably entails the simple end goal of obtaining a bulb that lighting up- a straightforward functional result. Sometimes we buy products to make ourselves happy when this took place then which means that our end goal would be an abstract goal.
When consumers try dealing with problems relating abstract end goal, they break down the overall goals into several more specific sub goals then end goal and its own sub goals are a goal hierarchy. Forming an objective hierarchy is analogous to decomposing a sophisticated problem into series of simpler sub problems, each of which can be dealt with separately.
According to McGuire psychological of needs, Levi's fulfill the Social needs which are the most basic level concern essential need. Levi's promote its 501 jeans with the slogan" All I want is all I got" emphasizing that it satisfies the physiological needs.
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3. 2 Information search
This stage symbolizes the encouraged activation of knowledge stored in storage or acquisition of information from the surroundings about potential needs satisfiers.
Information can be collected internally that involves scanning and retrieving information stored in memory or externally which involves collecting information from the marketplace. Consumers are more likely to think about (activate) brands they have used before.
3. 3 Analysis of alternatives
When it involves product decision the decision alternatives are different product school, product brand, or model. In this case then your alternatives would be the choice of store to visit, time of day or week to shop or ways of payment.
We stay in the 21st century where everything is made more convenient by the use of the internet and being that they are more advantages to shopping on the internet then heading to the store, such to be able to shop 24 hours a day for any kind of product imaginable. The capability to shop from home allows many people who have trouble getting to real world retailers such as elderly or disabled people or others with move or freedom issues to still purchase the products and services they want.
But the biggest advantage could be the able to compare product costing, with the online tools the permit products evaluation, consumers can compare products price and features to make smarter decision with less work. These are many websites which are dedicated to the selling of Levi's products. Not just that but they have their standard websites which helps you also find stores that sell the products if you are old-fashioned and need the non-public train when shopping.
3. 4 Post-Purchase
The last level of the consumer decision making purchase is the post- use evaluation where the consumer experiences a feeling of either satisfaction or dissatisfaction. The level of satisfaction or dissatisfaction we experience is based upon how well the product's performance fulfills our objectives.
An important component of post purchase analysis is the reduction of any doubt or doubt that the consumer might have experienced about the choice. As part of their purchase analysis, consumer try to reassure themselves that their choice was a sensible one and they try to reduce post purchase cognition dissonance. They do this by adopting one of the following strategies.
4. 0 The subconscious core
4. 1 Exposure
Exposure occurs when there may be physical proximity to a stimulus that allows one or more of individuals' five senses to be activated. This activation happens when a stimulus fits or exceeds the lower threshold: the bare minimum amount of stimulus power necessary for discomfort that occurs.
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First of all, the most apparent and important factor of this advertising campaign is sex charm. This advertisement has colors that are crucial for attracting customers. At first glance you're immediately attracted, the dark and white which each presents a different aspect of life, that i believe in a way provoke strong thoughts. Color may influence our mental more directly, the dark-colored color represent expert, power and enigma. On the other side the white color represent coolness, cleanliness and virginity. It really is considered to be the color of perfection. Corresponding David McGuire's mental motivates, this advertising campaign fit the needs of objectification category because it make visitors to infer what they feel.
4. 2 Attention
Due to the fact that the brain's capacity to process information is bound, consumers are extremely selective in what they focus on. The process perceptual selection means, that folks direct their focus on only a tiny part of the stimuli to which they are revealed. Consumers practice a form of "psychic current economic climate", picking and choosing among all the stimuli and rectifying what deserves their time and what doesn't, in order to avoid being overcome.
That is why individuals at Levi's designed what they did, just like "In angling it is sometimes essential to use one fish as bait for others". Similarly companies often use images of individuals in order that they may "catch" the perspective consumers' attention.
Good looking people with barely covered well toned bodies usually attract a whole lot of positive attention. This is almost a fact of life, just like on the beach, and it's true in advertising world. That is why advertisers are likely of by using attention-getting device so frequently.
In this advertisement they took advantage of a number of tools another tool used here's semiotic. Semiotics is important to the knowledge of consumer patterns because consumers use products to express their interpersonal identities.
4. 3 Perception
Sensation identifies the immediate response of the sensory receptors (eyes, ear, nose, mouth, fingers) to basic stimuli such as light, color, sound, odor and structure. Perception is the process by which people select, coordinate and interpret these sensations.
The unique sensory quality of a product can play an important role in helping it to stick out from your competition, especially if the brand creates a distinctive association with the feeling. The Levi's four elements advert is beautifully sophisticated because it captures all of our senses allowing us to feel something more, its show the individuals natures which are particularly, originality, masculinity, youthfulness and rebelliousness. This response is an important part of the hedonic usage, the multisensory, fantasy and emotional areas of consumers' discussion with products.
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4. 4 Memory
According to the information-processing point of view, there are three unique recollection systems: sensory ram, short storage area and long-term memory space. Each plays a role in processing brand-related information the diagram below summarizes the interrelationship of the storage system.
This following advertisement will be stored in the long-term memory space because of the "Spreading activation" involves the idea of one memory space "triggering" a different one. In the case of this ad the Levi's brand which really is a famous globally renowned brand promising superiority in every of its jeans designs, as well as having a brief history of making excellent Jeans that happen to be young, fresh and various. It is ideal for firms to acquire their product be turned on by as much different stimuli as it can be.
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4. 5 Motivation
Each folks is motivated by needs. Our most basic needs are inborn, having developed over thousands of years. Abraham Maslow's Hierarchy of Needs helps us to describe how these needs encourage us all. Below is a diagram demonstrating the different degrees of Maslow's hierarchy of needs.
4. 6 Attitude
Consumers form an 'frame of mind' on the advertising of something as well as in the work of buying the product. This attitude brings about the goal of whether to buy the merchandise or not. Based on the ABC model; frame of mind is split into three components: affect, patterns and cognition.
Feeling
Affective
Intention
Attitudes
Behaviour
Beliefs
Cognition
All three components of an attitudes are essential, but their comparative important will change depending on a consumer's degree of motivation with regard to the frame of mind object, whether they are light or heavy users, etc.
Researchers developed the idea of hierarchy of effects to clarify the comparative impact of the three components. Each hierarchy specifies that preset collection of steps occurs en route to an frame of mind.
5. 0 The Consumer Environment
5. 1 Culture
The usual way in marketing is to analyze culture in conditions of its major traits or in content. (4) the content of culture includes the values, behaviour, goals and principles presented by most people in a society, as well as so this means of characteristic, rules, traditions, and norms that folks follow. The content of culture also like the major social establishment in society and physical environment and typical physical subject (products, tools and structures) utilized by people in a modern culture.
Marketers think we should acknowledge that the items we buy do hold meaning, as long as we also recognize that we're the ones who offered it to them. A wedding wedding ring, for example, only signifies the partnership between two different people because those two different people (combined with the society around them) concur that it does. We are the ones who invest these items with symbolic electric power, and, furthermore, to do so is a general human being activity.
5. 2 Social
Status hierarchy in which individuals and categories are classified based on esteem and prestige obtained mainly through economical success and build up of riches. Four common public classes (in their descending order) are: 1st is the Upper class, 2nd is the center course, 3rd is the Working class, and the 4th is the low class
Between higher and middle income there's a class which is called upper middle class which is defined sociologist Utmost Weber top of the middle class consists of well-educated specialists with graduate diplomas and comfortable incomes and this is the public school the represents the Levi's brand.
Although previous research has validated that consumers often choose products and brands that represent who they are, the current research suggests that consumers also choose products with techniques that demonstrate who they are not.
Levi's brand does indeed many jobs to bring new styles for folks and help population. For example, In January 2010, The Dockers Brand-the brand which founded by Levi's in 1968- launched an extreme, cross-channel marketing campaign with the tagline "Wear The Pants. " The marketing campaign premiered during the 2010 Super Dish, and was the first Super Dish advertisement to provide an exclusive, limited time online offer for audiences.
The Dockers advertising campaign tagline, "Wear The Trousers, " was sold as a call to masculinity for men. The advertising campaign incorporated outside options to incite men to reclaim their lost male-aesthetic. Along with a new campaign communication, the Dockers brand has since revitalized their product line as well, offering several new styles aimed at a younger, status-seeker consumer. The Dockers brand has also partnered with Habitat for Humanity as their charitable cause.
The Levi's will not just represent the New York life style but it symbolizes more using this method it brings people jointly and if you're walking down a avenue therefore you some using the same T-shirt or the same trousers you are feeling like your apart of something.
6. 0 Internet entrepreneur controlled activity
Like other successful companies, Levi's also offers recognized that the marketing environment presents a never-ending series of opportunities and threats. The major responsibility for identifying significant changes in the macro environment falls to a company's marketers. More than another group in the company, the marketing managers of Levis are the craze trackers and opportunity seekers.
6. 1 S. T. P
STP refers to the three activities segmentation, targeting, and setting. The growing use of the STP process has occurred as the result of the prevalence of mature markets, the higher variety in customer needs, and the capability to reach specialized sections. Great things about the STP process include:
Enhancing a company's competitive position by giving direction and concentration for marketing strategies.
Examining and figuring out growth opportunities on the market through the identification of clients.
More effective and effective matching of company resources to targeted market sections promises the greatest come back on marketing investment.
6. 1. 1 Segmentation
Market segmentation is the section of market into different sets of customers with distinctly similar needs and product or service requirement.
Limitation of segmentation
Levi's faces some restriction because of market segmentation:
Lack of recognition in middle income.
Company has to pay extra cost for multi-advertisement.
In some countries they need to face several Cultural Barriers
6. 1. 2 Targeting
501 JEANS targets its market by evaluating the desires of customers. Mainly Levi's focuses on its market among the next classes:
Upper Class
Upper Middle Class
6. 1. 3 Positioning
Positioning is important since it is the means by which goods and services can be differentiated from one another and so give consumers grounds to buy.
6. 2 Marketing blend (4ps)
6. 2. 1 Products
Usually products considered to be No1 factor to build a goodwill company. So products should be unique, stylish, reliable and comfortable. Here some basic feature of Levis product:
Features
Design
Color
Size
6. 2. 3 Price
Price is one of the important components of the marketing mix, as it's the only blend which generates the turnover of the organization. All Levi's products are sold at shown price and it's fixed. There is no discount offered even to the employees of Levis. The business also deals with credit sales, nonetheless they don't overcharge the clients.
6. 2. 4 Place
Normally placement target helps to boost the brand quality by getting every place in this world. Also it fulfill the requirement of every locality in line with the taste of the folks. Levi's brand is sold in 49 countries, and Dockers sold in 31 countries.
6. 2. 5 Promotion
For the campaign of sales, Levi's adopt a very effective but detailed strategy. The major success of Levi's is performed by creating public relations. Levi's use two types of advertising, competitive advertising and institutional advertising. Also they use a great deal of press advertising like TV, fashion publication, internet and etc.
Recommendations
If Levi's lower down its prices somewhat the sales volume level could be risen to an extremely large extent. Thoughts of many people show that those consumers who are relatively dissatisfied or who are completely dissatisfied offered the reason why of high prices.
Levi's gives its maximum attention to the men's wear. Although the women section and kid's sections are present however they aren't full filling the requirements much.
The kid's section, which is just in start, should get attention to catch the attention of more customers.
A lot of importance should be given so far as the advertisement can be involved. They have to stress on promoting their products especially through Television media.
