Levi Gap Similar Price Range

Published Date: 02 Nov 2017

As one of the wold’s largest brand-name apparel marketer with sales throughout the world, the Levi Strauss& company was created in 1853. There are have largest marketplace in the jeans and casual pant market. Levi’s is very famous jeans brand which is not only extolled as founder of jeans, but also it represents that America wild, treason , resolute and steadfast. At same time , it also represents the Oregon trail American settler spirit. Through the 100 years developing , the Levi’s was be accept to everyone , from the America popular to world popular. Today, the Levis trademark is one of the must recognized in the world and is registered in more than 160 countries.

Now, more than ever more, continuous and meaningful innovation is the key to the success of their business. In Global business environment, the competition is very intense. The global trade, and enter to the instant communication brings exert more pressures on product and brand differentiation. To be successful, it is necessary to Levi Strauss changing in new and different ways, the era of mobile competition.

Levi has been trying to create a very easy to find. Easy to buy images. In 2001, they introduce their products to upgrade the 1500 accounts. They create exciting displays, better organization and availability of products. Levi's focus has been on improving the retail experience through exciting, better organized and the availability of the product, and concern by calling plans through the aisles of the location and effective point-of-sale materials. Levi's selling dependence on the entire European state-of-the-art retail concept. This concept is a comprehensive retail, to provide a very high level of participation in many aspects of the shopping experience and product variety, from the choice of location.

Competitive Analysis

Levi's jeans have many direct competitors, however, the main competitors Wrangler, Gap and faded glory. Between these brands jealousies purchases ("jeans", March 2008), the highest proportion. Indirect competitors include any company, sales of other types of khaki pants, casual pants, corduroy, shorts, dresses, skirts, trousers.

Clothing because all these types, the purpose is the same, basically have the same attributes besides-materials and brand names, Levi's can be the differences between direct and indirect competitors found through positioning and personality. Jeans are no longer regarded as exclusively-casual, but also can wear more formal occasions, therefore, khaki pants, casual pants, the skirt addresses indirect competition.

Next is the Levi’s jeans main the competitor analysis.

Lev’s

Current position/personally

Lev's denim industry has been a traditional brand, but has already begun to position themselves for a more modern, sexy, high-quality brand

price

$50-$100

Promotions used (current and past)

In 1984, Levi's launched the "501 Blues" campaign, in 1988, you get the fly?

Advertising

1990s Levi baggy jeans advertised portray themselves institutions charming loss of interest in midair

wrangler

Current position/personally

The Wrangler Western and rugged companies, and claimed it clothes the door.

price

$29-$70

Promotions used (current and past)

Using the iconic images of running horses and cowboy hat.

Celebrity endorsements, the small Dale Earnhardt, and Brett Faure.

Sales of their products, as appropriate, to wash, comfortable to the audience, rather than using celebrities

The Gap

Current Positioning/ personality

The gap is an iconic brand casual basics and use the phrase wearing your passion

price

$54-$88

Promotions used

(current and past)

The gap has been a celebrity in their advertising, but in their efforts to reach a younger target market, they have begun to use in their advertising a younger age group.

Recently, the gap with iTunes cooperation to promote the so-called "discovery" your favorite appropriate. This cross-promotion available for free download from iTunes customers to try on a pair of jeans, specialty printing and TV shows with actors' performances interpretation Gap jeans.

Faded glory

Current positioning/

personality

Faded glory, stylish brand positioning, which is moving the other products, such as T-shirts and jackets.

price

$20

Promotions used

(current and past)

Although Wal-Mart did not Faded glory brand advertising, they have just launched a brand of a website, promote its price / value position with Wal-Mart retail concepts

Price

Levi gap similar price range and is slightly more expensive than Wrangler jeans. However, Wal-Mart's faded glory brand is almost half the price of other competitors. Levi Strauss dollars, revenue of $ 4.4 billion last year, an increase of 0.9%. VF Corporation, the company owns Wrangler jeans, total revenue was $ 76 billion, an increase of 5.9% over the previous year, profit was $ 932 million and operating, down 2.7% from a year earlier. 36.2% of this income is through its denim apparel brands, including Wrangler (about $ 2.8 billion, a decrease of 4.6%, from the previous year) (Overview of VF Corporation. "May 2009). Income gap 15.8billion U.S. dollars, a decrease of 1% from the previous year, but operating profit amounted to $ 13 billion, an increase of 7.4%. (Gap Product introduction "September 2009).

Gap with faded glory sale in a specific location. Gap jeans store sold only. Faded glory jeans, because it is the location of the Wal-Mart brand, sales only at. Wrangler and Levi, on the other hand, have a wide distribution channel to use a similar strategy to promote their products. They sell them the jeans at mass merchandisers, such as Wal-Mart and Target. As more and more interest in their flagship brands like faded glory, these businessmen began to reduce the shelf space dedicated to these premium denim brand, and assigned its own flagship brand. This is a key reason, why Faded glory Levy is considered a major direct competitors. In addition to Levi's and Wrangler department stores and national brands, such as Macy's and JC Penney sell. In final, they both own flagship store is located in the exclusive across the country to sell its own brand of jeans. Because of its distribution is very similar to the strategy. Wrangler and Levi's can are is considered the main competitors with each other ("jeans", a year earlier in March 2008) . VF Corporation, the company owns Wrangler jeans, total revenue was $ 76 billion, an increase of 5.9% over the previous year, profit was $ 932 million and operating, down 2.7% from a year earlier. 36.2% of this income is through its denim apparel brands, including Wrangler (about $ 2.8 billion, a decrease of 4.6%, from the previous year) (Overview of VF Corporation. "May 2009). Income gap 15.8billion U.S. dollars, a decrease of 1% from the previous year, but operating profit amounted to $ 13 billion, an increase of 7.4%. (Gap Product introduction "September 2009).

Distribution

Gap with faded glory sale in a specific location. Gap jeans store sold only. Faded glory jeans, because it is the location of the Wal-Mart brand, sales only at. Wrangler and Levi, on the other hand, have a wide distribution channel to use a similar strategy to promote their products. They sell them the jeans at mass merchandisers, such as Wal-Mart and Target. As more and more interest in their flagship brands like faded glory, these businessmen began to reduce the shelf space devoted to these premium denim brand, and assigned its own flagship brand. This is a key factor, why Faded glory Levy is considered a major direct competitors. In addition to Levi's and Wrangler department stores and national brands, such as Macy's and JC Penney sell. In final, they both own flagship store is located in the undivided across the country to sell its own brand of jeans. Due to its distribution is very similar to the strategy. Wrangler and Levi's can is considered to be the main competitors with each other (in March 2008 "jeans"

Promotions

While these companies continue advertising through traditional media, they are starting to divert attention turned to new media mining social networking sites, product launches, digital advertising and celebrity endorsements. Clothing, and in the product placement because story depicting a certain type of lifestyle. January 2008 the Levi 501 series brand key project runway episodes, contestants were given a challenge to create a cutting-edge appearance Levi. Levy is also featured on the office of the hit comedy series where the protagonist tells his employees to wear jeans for casual Friday and later said. "I love my new Levi gap has to cooperate with a promotion called" suitable iTunes to find your favorite. "This cross-promotion Free from iTunes, customers also take advantage of Wrangler jeans and specialty print and TV shows gap jeans.Levi celebrity endorsements choice individuals actors performing to attempt to brand personality. Wrangler people (such as football quarterback Brett Faure and NASCAR driver valley Earnhardt Jr.) to promote their "rock star" jeans, Levi agreed with the rock band INXS. Although Wal-Mart does not have advertisements featuring faded glory brand, they just launched a website brand promotes its price / value positioning in line with Wal-Mart a retail philosophy Levi the 501 series of ads displayed for a young audience jeans as a gateway to the sexy and exciting lifestyle, and Wrangler jeans tend to show the same tenacity and rugged.Walmart recently redesigned its faded glory the Former trademark, positioned as a stylish jaundicing. As previously mentioned the success of the innovative brand, which has affected the Levy because Shelf space had been assigned to the Levi's will be transferred to Faded glory

Target market

Levi's for two prominent parts. Levi's first target market is 35-44-year-old young man who wants to premium jeans (jeans ", March 2008). Consumers are attracted to high-quality denim because of its upscale image, rather than a functional purpose. Target market Levi retro looks attractive. Levi's goal is to the families of the U.S. population and family ("Home and Family" 2008). They live in a rural place. They have their own house. This part of the people who like to socialize in their homes spoiled child. Their way of life is similar to the "American Dream". Levi's customers to obtain a middle-income wages, cash-strapped jeans. Clients like the clothes last a very long time in the home and family information. The quality is the most important factor. They are the product. They are family-centered, like to be informed about their purchase decisions. They prefer to shop in department stores and discount stores to buy, jeans.Home and household customers arrange their lives around their favorite TV shows, such as SOAP net. They watch a lot of cable TV network stations, read magazines and at home using the Internet on a regular basis. These consumers visit a photo-sharing site, and engage in testing, but they do not use the new media, like other consumers ("home and family" 2008).

The second part consists of a stylish young market. Levi hired a hate couture fashion designer to change their brand, growing youthful population customers.Therefore, they have launched a flagship store with high-end denim Levi line, occupied the attention of the youth market. For example, they intend to go after, spiritless man to lose weight with the feel of a city's artistic skating and perfect-fitting jeans for women in jeans. The traditional stores they decided to takeaway jeans to their retail store ("jeans", March 2008). Levi's denim industry's is the classic story. Times are changing, did not think Levi's pick as their preferred denim market driving force. According to our macro environmental studies, we found, is on the rise in the new millennium generation, population of Newmarket driver.Levi's potential target market is college students in Gainesville in the 18th and the 24th. FL.This potential target market belongs popular culture "section (" popular culture ", 2008). They are fresh ambitious adult learning and kick back and enjoy the extreme has fun.They are currently studying at the university, and aspire to be the cream of the crop. Their motivation to purchase the latest fashions based on their favorite celebrities is wearing. A spokesman, which will attract the population is considered to be a tasteful and attractive men and women recognized. Celebrities like Megan Fox and Ryan Reynolds will grab their attention. At the time of purchase consideration factors, they stand out in the crowd and appealing to the opposite sex. Their perspective views clothing, casual clothing (Jeans, March 2008) valuable wardrobe. They are the first of their friends, because they are adventurous, try a unique modern style. However, they prefer shopping with friends, because they are secretly approved of the job seekers. They buy the latest fashion each season, the first one to find their favorite brands. Their media usage patterns are written in the Internet. They like to hear products.

And services through their personal e-mail, the Internet and others mingle. They like blogs, instant messaging, video sharing and discussion through online forums, photo sharing sites and game consoles. Wired Internet radio stations, such as MTV2, VH1, Fuse, Comedy Central, TBS and E are their favorite. They enjoy reading 17 and U.S. weekly. "(" Popular Culture ", 2008)

Environment analysis

Macro environment analysis

Economic

Trend

Since December 2007, the U.S. economy has been in recession (OK December 2007 peaks in economic activity "in December 2008). Recessions are forcing consumers to spend less money, and can save them. The unemployment rate reached 10.2%, the highest level since 2009 10, 1982 (the "American way of life", January 2010). This caused less disposable income, consumers shopping in large malls to look compare cheap price of goods and stores between.

Environmental/Sustainable development Trend

Due to global warming and sustainable development of the new information, consumers have become interested in the role of more environmentally friendly. "Green" market, which is increasingly inside expected to affect the apparel market ("Jeans", March 2008). Currently, 12% of the population can be classified as a 'real the Greens' personal are passionate consumers of green products. Approximately 68% Light Greens' personal purchase green products" ("green marketing" May 2008).

Population

Demographic Trend

The Hispanic market is the largest minority group. With population 37 million people, they more than African-American population in 2003. Due to their size, Hispanic Americans have begun to define what is mainstream. Hispanics like to wear jeans to work or go out. In 2005, approximately 42 million Hispanics spent $ 880 million denim products. In Hispanic, many women have of jeans over 12 ("Jeans", March 2008). Age is a change in the population. Population 12-17 years is increasing. This age group has always been driven by sales of jeans, because of their preference for shopping in the store. However, the overall expenditure of the Group and only a specific segment the teen market can afford high-priced jeans. The millennials, years old 14-31 (born between 1977 and 1994), is also growing, expected in 2012, the biggest change from 4.8% in 2002 on behalf of the United States age group. Ultimately, this will define what is popular (March 2008) jeans.

Other Trend

Ethical trends

Although the jeans category sales decline in 2008 due to the economic recession, the amount of money to charities fell by only 2% in 2008 (the "American way of life", January 2010). This suggests that, although people are cutting back expenditures, they still feel in clinging to help others less fortunate people.

Obesity

"According to the U.S. National Center Health Statistics in 2007, more than 60% of the age of 20 years old and above Americans classified as overweight, and a quarter of American adults are classified as obese" ("jeans", 2008 March). Because the size of everyone growing larger, garment enterprises must adapt to the style of the heavier population. "62% of American women apparel market, plus size, plus size clothing sales total increase of 37%, the current price is predicted" ("jeans", March 2008).

Location

- The brand of jeans is no longer the only department store. The to its popularity, various manufacturers has decided to open a flagship store, their premium jeans IN13

, Which will attract young people who are fashion conscious ("jeans", March 2008). This will also allow brand marketing process control aspects. The brand has already begun doing this include: Levi's, Tommy Hilfiger, Liz Claiborne and VF Corporation.

Production

The United States and into foreign countries, has begun production of the apparel manufacturing industry at a lower price. This has given rise to a variety of companies to start to design and wholesale, rather than the actual production of clothing (men and Boys Apparel manufacturing in the United States, "January 2010). To maintain a good name brand avoids being associated with sweatshops abroad, they require better workers' rights in overseas of factories. In the United States in 2007, is of illegal import products company in sweatshops (clothing).

Swot analysis

strengths

weaknesses

-has environmentally friendly jeans, Levi’s Eco

-produces a wide variety of jeans product lines

-has several distribution channels

-jeans made of stain resistant fabrics

-patented copper rivaling makes jeans stronger

- go forth campaign is not expected to be effective with large

-Levi’ late in joining trend of switching to premium jeans

-net revenue has decreased by ix percent in the last quarle

opportunities

threats

-jeans industry expected to grow 18% between 2007 and 2012

-Hispanic marketing is fastest growing market from 14.7% to 15.9% of population

-companies are using new media to reach consumers

Mass merchandiser private labels (i.e. Faded Glory) are becoming more popular due to cheaper prices

−

Popular mass merchandiser private labels are taking more shelf space

−Currency exchange rates are unstable

−New companies filled the void created because Levi’s and others lacked innovation

The Part B

the companies want to increasing or get a goal of marketing to develop deep, enduring relationships with people and organization that directly or indirectly influence the companies marketing activities is relationship marketing. The main constituents for relationship marketing are customer, employee ,marketing partners and member of financial community. In the E-commerce entities, the unique company some time build the customer relationship with the profits or grift. In fact , the most of companies choosing to own brands rather than physical assets and are subcontracting activities to organization that can making them better and more cheaply , while retaining core activities at home.

Customer relationship management enables companies to provide excellent real-time customer service through the effective use of individual account information. Based on what they know about each valued customer companies can customize market offerings , services , programs , messages, and media. Customer relationship management is important because a major diver of company profitability is the aggregate value of the company’customer base.

According to the Levi’s website , we can easy and clear to find that they want to increasing the relationship with customer activity. Such as the Levi’s loop VIP . If you become to the loop VIP , you will be accept more information that different news at frist time. Include the Levi’s hot product, fashion activity , product shows with superstar, booking new product and product experience. It is not only about that , if you buy the Levi’s product , you will have loop VIP integral to save money. This integral is not selling.

Above the market place, on the website , lev’s using the brilliant ways that is distinguish different market, indicating the shop address. So this could lead to the loyal customer could buying the product in every where.

Whatever the website VIP or promotion , the own brands is best way to increasing the customer relationship. So many companies will build the brand and stand for the product image. The loyalty customer could be accept a lot activity on the website. If we not buying the product have once, the activity also can not be accepted. So the many company strategy from mass marketing to one-by-one marketing.

question 2

The mass market to one-by one evolution

According the great marketing turnaround , the marketing have many evolution in past 50 years.

In 60 times

the age of mass marketing

companies has the goals that control the mass marketing through no different way to do.

In 70 times

the age of market segmentation

companies begin to feeling the import of different. So a lot of companies from occupy market to market segmentation

In 80 times

the age of Niche marketing

It is base on special and mac-market as befits market way. The Niche reflect to the marketing competition become serious

In 90 times

age of one-to-one/ relationship marketing

Companies begin as individual customer become to goals. At same time , focus on the relationship with companies strategy.

The mass marketing to on-to- one market is the company develop process, it is effective.

Firstly , mass marketing. In the mass marketing , seller want to satisfy buyer requirement to increasing the volume of production, a lot of segmentation , promotion singleness product . But the mass marketing meeting the problems , because the market place become segmentation with time.

Secondly , the mass marketing become to segmentation market. The segmentation is distinguish customer on basis of same requirement , ability , geography. That customer was distinguished has same requirement and want.

Next , the segmentation market become to niche market. The niche market is increasing the segmentation market that make the geography or other customer to distinguishing the organization or group that having the same benefit.

In the end, the niche market become to the one-to-one market. With society of developing , the one-to-one marketing has been ability that large-scale custom-tailor.

That transformer is clear and distinct showing " customer is god".

The question 3

According the Levi’s website, i will give the three customer relationship management recommendations to improve the Levi’s website.