Marketing Strategy of Levi Strauss & Co. : Levi Strauss & Co. (LS&CO) is a privately held clothing company known worldwide for its Levi's brand of denim jeans. It was founded in 1853 when Levi Strauss came from Buttenheim, Franconia, (Kingdom of Bavaria) to San Francisco, California to open a west coast branch of his brothers' New York dry goods business. Although the company began producing denim overalls in the 1870s, modern jeans were not produced until the 1920s. The company briefly experimented (in the 1970s) with employee ownership and a public stock listing, but remains owned and controlled by descendants and relatives of Levi Strauss' four nephews.



The Marketing Strategy by Levi's

In order for a new brand to establish itself in its market and for its
products to sell successfully, thus achieving company goals and
shareholder profitability, a number of key principles concerning
consumer behaviour have to be fully grasped and addressed. As well as
producing a range of new, exciting and quality garments, the firm will
need to ensure that its products are cleverly and thoughtfully
marketed to the appropriate consumer groups.

In this report I will look at the marketing strategy employed by Levis
on their new 'Anti-Fit' style jeans, and at the importance of consumer
behaviour in deriving this strategy. I will also look at the
importance of a clear and up to date comprehension of the factors that
affect consumer behaviour, paying particular attention to the key role
that perception will play in forming consumer's attitudes towards the
new range of designer jeans. I will continue on to show how favourable
perceptions about Levis brand identity will have a positive effect in
raising consumer motivation to purchase a product from their range.

The fashion industry at this time; a time of increasing disposable
incomes and incidence of recreational shopping, is intensely
competitive. We can draw on many examples to highlight the point that;
companies who have established a strong and clear brand image, have
tended to command a larger market share than those companies who's
image is either unfavourable, for example old fashioned, or unattached
to specific and clear values. Establishing a strong and
distinguishable brand image for the 'Anti-Fit' range of jeans is the
central idea behind Levis marketing strategy for breaking into the
competitive market and ultimately gaining a favourable share of the
market for designer jeans. Creating the right brand image is largely
dependent upon being in tune with the mindsets, beliefs, values and
aspirations of the modern, well-informed consumer. Moreover ensuring
that the consumer perceives the firm to be in tune with their way of
thinking and holding similar values centrally to the Levis brand
identity will be the key to ensuring marketing success.

When advertising the 'Anti-Fit' product Levis must ensure that its
messages are clear and perceived by the desired audience in the
intended manner. Evans, Moutinho and Van Raaij (1996) believe that
…"the more we understand about the perceptual process both generally
and of the target market concerned, the more we can ensure that the
intended receivers of the message will interpret it in the intended
manner"… (pp. 55). The notion of branding can have significant effects
on consumer's perceptions of product characteristics and attributes.
Studies have shown customers can often not tell the differences
between the various brands but labels and their associations
definitely influenced their evaluations. (Consumer Behaviour G R
Foxall) This shows that customers' perceptions of products can derive
from marketing effort alone; brand images and brand differentiation
can be the consumers' only guide to want satisfaction. This is
particularly evident in a highly branded stylised market such as the
jeans market. Therefore pursuing the correct marketing campaign is
essential to appeal to the target audience, in an already highly
differentiated market. When shopping for designer jeans consumers are
more likely to consider purchasing a brand product from his or her
awareness set than from a company who's brand image he or she has not
been exposed to. Brand awareness is an obvious precondition to
purchase. (Jobber 2004)

The purchase of a pair of designer jeans may be considered neither a
high involvement nor low involvement purchase, where involvement may
be thought of as …"the degree of perceived relevance and personal
importance accompanying brand choice"... (Blackwell, Miniard and Engel
2001: quoted in Jobber 2004). The following model is an amalgamation
of Fisbein and Ajzen's model for high involvement purchases and
Enrenberg and Goodhart's model for low involvement situation.

[IMAGE]


The influences at work when shopping for designer jeans.

The purchase of a pair of designer jeans is seldom undertaken with the
same abandon and low risk as, for example, the purchase of a pair of
socks. Jeans may be worn and enjoyed for many months, even years.
Therefore the consumer would want to ensure that the jeans will remain
comfortable, fashionable and flattering for more than a few outings.
Creating a brand that is seen to be fashionable, desirable and having
a degree of exclusivity, is vital for attacking the designer end of
the jeans market. Referring to the model above and what has been
written up to this point, suppose two comparably priced jeans we're
tested, both equally well fitting and both well styled. A consumer may
be swayed by brand snobbery, wishing to attach herself to the brand he
or she believes matches his or her beliefs and attitudes and will
result in greater approval from his or her significant references. The
more aware a consumer is of a brand, the more likely he or she may be
to purchase its product.

Perception of products and brand identity has a big impact on consumer
purchasing behaviour, within a dynamic fast moving market, such as the
jeans market; where style and originality is the key. Perception is
defined as 'the entire process by which an individual becomes aware of
his environment and interprets it so that it will fit into his own
frame or reference' (Walters in Consumer Behaviour G R Foxall 1977).
People become aware of their environment through the five senses,
therefore sensation is the process by which perception begins. Also
important is the process of interpretation, which depends on the
socio-psychological meanings the individual attaches to the object
perceived. Everybody perceives things differently and this is
important when thinking about grouping people into a particular market
segment or marketing a brand in a particular way, as potential
consumers may not interpret such things with the same meaning as
intended. 90% of stimuli are received through sight, therefore when
marketing a new range of designer jeans visual stimuli are a key
method of attracting potential consumers.

Potential customers within such a competitive market have a number of
factors influencing their purchasing behaviour. Consumer buying is
motivated by something more than awareness; it depends on the
consumer's needs and drives, tastes and aspirations, attitudes,
personality and social environment. Products are not only purchased
for their functional values but also, for the social and psychological
meanings they convey. The purchase of a pair of jeans is linked, to
what extent is dependent on the individual, to the formulation and
shaping of a consumers self-image. Purchasing a pair of jeans will to
some degree shape a person's self-image and the way others may
perceive them. As marketers, a company must align the consumer's
self-perception and the image they intend to project to others, with
the attributes and values they perceive to be attached to the company
and its associated products. Grubb and Grothwohl (1967) suggest image
research within marketing seeks to ..."link the psychological
construct of an individual's self-concept with the symbolic value of
the goods purchased"... (p 23). A consumer will purchase goods that
they believe will either enhance their self-image, or those which help
the consumer to feel closer to their self image. Therefore we may
think of goods, in this case designer jeans, as symbols that
communicate something about the individual to his "significant
references" (p 24).

The selective nature of perception and attention act as a way of
coping with the constant bombardment of stimuli, the precise manner in
which the person allows some messages to penetrate while rejecting
others depends on values, motives and attitudes as well as social
situation. With a prior knowledge of this aspect of consumer
purchasing behaviour, it is clear that when selecting and targeting
potential consumers marketing strategies must incorporate a wide range
of factors to appeal to a market segment which may encompass people
with wide ranging beliefs, attitudes and values. For example marketing
for young, trendy professionals looking for up to the minute style may
represent a particular market segment but within this segment
individuals may have varying beliefs or values. Therefore, by simply
targeting a segment of the market we cannot assume homogenous
perceptions of a new product. Differing attitudes to a particular
strategy may be widely evident, therefore understanding consumers
purchasing behaviour in relation to differing perceptions will give a
wider insight into possible effective strategies.
 
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Marketing Strategy of Levi Strauss & Co. : Levi Strauss & Co. (LS&CO) is a privately held clothing company known worldwide for its Levi's brand of denim jeans. It was founded in 1853 when Levi Strauss came from Buttenheim, Franconia, (Kingdom of Bavaria) to San Francisco, California to open a west coast branch of his brothers' New York dry goods business. Although the company began producing denim overalls in the 1870s, modern jeans were not produced until the 1920s. The company briefly experimented (in the 1970s) with employee ownership and a public stock listing, but remains owned and controlled by descendants and relatives of Levi Strauss' four nephews.



The Marketing Strategy by Levi's

In order for a new brand to establish itself in its market and for its
products to sell successfully, thus achieving company goals and
shareholder profitability, a number of key principles concerning
consumer behaviour have to be fully grasped and addressed. As well as
producing a range of new, exciting and quality garments, the firm will
need to ensure that its products are cleverly and thoughtfully
marketed to the appropriate consumer groups.

In this report I will look at the marketing strategy employed by Levis
on their new 'Anti-Fit' style jeans, and at the importance of consumer
behaviour in deriving this strategy. I will also look at the
importance of a clear and up to date comprehension of the factors that
affect consumer behaviour, paying particular attention to the key role
that perception will play in forming consumer's attitudes towards the
new range of designer jeans. I will continue on to show how favourable
perceptions about Levis brand identity will have a positive effect in
raising consumer motivation to purchase a product from their range.

The fashion industry at this time; a time of increasing disposable
incomes and incidence of recreational shopping, is intensely
competitive. We can draw on many examples to highlight the point that;
companies who have established a strong and clear brand image, have
tended to command a larger market share than those companies who's
image is either unfavourable, for example old fashioned, or unattached
to specific and clear values. Establishing a strong and
distinguishable brand image for the 'Anti-Fit' range of jeans is the
central idea behind Levis marketing strategy for breaking into the
competitive market and ultimately gaining a favourable share of the
market for designer jeans. Creating the right brand image is largely
dependent upon being in tune with the mindsets, beliefs, values and
aspirations of the modern, well-informed consumer. Moreover ensuring
that the consumer perceives the firm to be in tune with their way of
thinking and holding similar values centrally to the Levis brand
identity will be the key to ensuring marketing success.

When advertising the 'Anti-Fit' product Levis must ensure that its
messages are clear and perceived by the desired audience in the
intended manner. Evans, Moutinho and Van Raaij (1996) believe that
…"the more we understand about the perceptual process both generally
and of the target market concerned, the more we can ensure that the
intended receivers of the message will interpret it in the intended
manner"… (pp. 55). The notion of branding can have significant effects
on consumer's perceptions of product characteristics and attributes.
Studies have shown customers can often not tell the differences
between the various brands but labels and their associations
definitely influenced their evaluations. (Consumer Behaviour G R
Foxall) This shows that customers' perceptions of products can derive
from marketing effort alone; brand images and brand differentiation
can be the consumers' only guide to want satisfaction. This is
particularly evident in a highly branded stylised market such as the
jeans market. Therefore pursuing the correct marketing campaign is
essential to appeal to the target audience, in an already highly
differentiated market. When shopping for designer jeans consumers are
more likely to consider purchasing a brand product from his or her
awareness set than from a company who's brand image he or she has not
been exposed to. Brand awareness is an obvious precondition to
purchase. (Jobber 2004)

The purchase of a pair of designer jeans may be considered neither a
high involvement nor low involvement purchase, where involvement may
be thought of as …"the degree of perceived relevance and personal
importance accompanying brand choice"... (Blackwell, Miniard and Engel
2001: quoted in Jobber 2004). The following model is an amalgamation
of Fisbein and Ajzen's model for high involvement purchases and
Enrenberg and Goodhart's model for low involvement situation.

[IMAGE]


The influences at work when shopping for designer jeans.

The purchase of a pair of designer jeans is seldom undertaken with the
same abandon and low risk as, for example, the purchase of a pair of
socks. Jeans may be worn and enjoyed for many months, even years.
Therefore the consumer would want to ensure that the jeans will remain
comfortable, fashionable and flattering for more than a few outings.
Creating a brand that is seen to be fashionable, desirable and having
a degree of exclusivity, is vital for attacking the designer end of
the jeans market. Referring to the model above and what has been
written up to this point, suppose two comparably priced jeans we're
tested, both equally well fitting and both well styled. A consumer may
be swayed by brand snobbery, wishing to attach herself to the brand he
or she believes matches his or her beliefs and attitudes and will
result in greater approval from his or her significant references. The
more aware a consumer is of a brand, the more likely he or she may be
to purchase its product.

Perception of products and brand identity has a big impact on consumer
purchasing behaviour, within a dynamic fast moving market, such as the
jeans market; where style and originality is the key. Perception is
defined as 'the entire process by which an individual becomes aware of
his environment and interprets it so that it will fit into his own
frame or reference' (Walters in Consumer Behaviour G R Foxall 1977).
People become aware of their environment through the five senses,
therefore sensation is the process by which perception begins. Also
important is the process of interpretation, which depends on the
socio-psychological meanings the individual attaches to the object
perceived. Everybody perceives things differently and this is
important when thinking about grouping people into a particular market
segment or marketing a brand in a particular way, as potential
consumers may not interpret such things with the same meaning as
intended. 90% of stimuli are received through sight, therefore when
marketing a new range of designer jeans visual stimuli are a key
method of attracting potential consumers.

Potential customers within such a competitive market have a number of
factors influencing their purchasing behaviour. Consumer buying is
motivated by something more than awareness; it depends on the
consumer's needs and drives, tastes and aspirations, attitudes,
personality and social environment. Products are not only purchased
for their functional values but also, for the social and psychological
meanings they convey. The purchase of a pair of jeans is linked, to
what extent is dependent on the individual, to the formulation and
shaping of a consumers self-image. Purchasing a pair of jeans will to
some degree shape a person's self-image and the way others may
perceive them. As marketers, a company must align the consumer's
self-perception and the image they intend to project to others, with
the attributes and values they perceive to be attached to the company
and its associated products. Grubb and Grothwohl (1967) suggest image
research within marketing seeks to ..."link the psychological
construct of an individual's self-concept with the symbolic value of
the goods purchased"... (p 23). A consumer will purchase goods that
they believe will either enhance their self-image, or those which help
the consumer to feel closer to their self image. Therefore we may
think of goods, in this case designer jeans, as symbols that
communicate something about the individual to his "significant
references" (p 24).

The selective nature of perception and attention act as a way of
coping with the constant bombardment of stimuli, the precise manner in
which the person allows some messages to penetrate while rejecting
others depends on values, motives and attitudes as well as social
situation. With a prior knowledge of this aspect of consumer
purchasing behaviour, it is clear that when selecting and targeting
potential consumers marketing strategies must incorporate a wide range
of factors to appeal to a market segment which may encompass people
with wide ranging beliefs, attitudes and values. For example marketing
for young, trendy professionals looking for up to the minute style may
represent a particular market segment but within this segment
individuals may have varying beliefs or values. Therefore, by simply
targeting a segment of the market we cannot assume homogenous
perceptions of a new product. Differing attitudes to a particular
strategy may be widely evident, therefore understanding consumers
purchasing behaviour in relation to differing perceptions will give a
wider insight into possible effective strategies.

Hey anjali, i am also going to share some important information on Levi Strauss & Co which would help others. Well, i also appreciate your work for sharing your marketing strategies report on Levi Strauss & Co.
 

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