Levi strauss marketing plan assignment

The pricing strategies LS & Co. uses will unquestionably acquire and maintain sales. With five (5) denim outlets, Levi Strauss has taken the approach of selective distribution. The company believes that it has chosen the most appropriate geographical areas for which their concentration will be focused. The company will be able to get the goods to the stores at the right time without incurring high costs with the acquisition of three warehouses that are located within 300 miles of each outlet. In addition, kiosks will be strategically placed at other retail stores that will carry the LS brand.

LS & Co. has invested in upgrading their current website that enables consumers to place orders online 24 hours a day. Since promoting this new venture, LS & Co. is 26% within the proposed budget. This has demonstrated a much focused plan for the company. Product Description and Situational Analysis Levi Strauss will open many stores, called Levi Strauss MJ’s, and design and market several styles of denim jeans that will cater to women only. These are consumers who want a durable pair of jeans that will expand as their waist expands.

By designing and marketing a pair of affordable, expandable designer jeans, Levi Strauss will attempt to eliminate the closet space used to house those jeans that a consumer needs to lost five to ten pounds to fit back into. Through their launch of their fall 2009 line in an upcoming catalog and the 2009 Fashion Avenue Market Expo, Levi Strauss will introduce the jeans. The company will also offer these jeans at a discount price if purchased online. Avenues for advertising will also include: online partner websites, partner catalogs, and coupons distributed as inserts in ewspapers. SWOT Analysis: Strengths: * Levi Strauss has a long reign in the denim industry of over a hundred and fifty years leaving them without a doubt a strong market shareholder in the clothing industry. * Levi Strauss is the most successful and highly recognizable clothing manufacturer in the history of apparel. * Levi Strauss & Co. has over 5, 000 trademark registrations and applications all over the world. * The company has created a Global Product Development Center to enhance jeanswear innovation capabilities. * The company has offices located in 31 countries. Levi Strauss has continued to implement a SAP enterprise planning system throughout Europe, Asia, and North America in order to better manage their inventory, resources, and business processes. * The Levi’s?? brand ranked No. 1 in the apparel, footwear and accessories category ahead of other top brands such as Hanes, Nike and The North Face. ( LS ; Co. 2009) * The company has a highly reputable and strong relationship with customers and suppliers. Weaknesses: * Management consists of a team of four who makes all of the decisions for the company.

This leaves the company very vulnerable in their management strategies compared to other manufacturers with a team of management that includes middle managers. * In the past, Levi Strauss has demonstrated inadequate Research and Development. With newer, trendier, more aggressive brands and designer labels, the company has begun to lose market share. * The Levi’s brand has yet to appeal to the younger generation since it was the original jean and is considered “ old”. Generation “ X” has not at all been interested in wearing their “ parent’s” jeans. The company has experienced poor sales performance over the last three years, resulting in a loss in net revenue. * The expansion of the new outlet stores will require the company to secure additional rental space and to develop astute retail strategies. * Levi Strauss will need to upgrade their information system in order to have online ordering and customer services available 24-7. Opportunities: * The company has the ability to grow existing markets and new markets. * To expand their presentations at wholesale accounts such as Wal-Mart, Target, and Macy’s. Along with capturing the market share of men’s jeanswear, to compete with women only fashion outlets such as Cato’s and Holliday’s. * To create a catalog of the brands under Levi Strauss. Threats: * The changing tastes of the denim market allows for many competitors to enter the market. * The trends of the economy. Target Market Jeans of all styles are a very popular form of casual wear among children, teenagers, young adults, and even baby boomers. They have several fits ranging from baggy, low-rise, and loose-fitting, bell-bottomed, relaxed, and skinny.

Wal-Mart, which carries the brand names of L. E. I. , Lee Riders, Norma Kamali, Jordache, Faded Glory, and Signature by Levi Strauss, specializes in discount pricing of those jeans. Today, however, Wal-Mart still maintains a market share of 10% in denim apparel. (Kania 2005) Pricing “ The quest for the perfect pair is always what justifies going out and buying another pair. ” (www. articles. moneycentral. msn. com) The adage “ there is a high cost to looking good” was the foundation for the creation of LS MJ’s outlets, proving that there is affordable fashion without having to break the bank.

Levi Strauss will gain a competitive advantage through an already established brand name, the differentiation of their product, and superior customer value by offering the lowest deliverable cost. Through extensive research and experience in marketing denim apparel to today’s woman, Levi Strauss will be offering the jeans at a price that is sure to please the consumer’s purse strings, while also garnering a huge market share in order to enhance the company’s profit margin. The regular jeans with zippers will be priced from $29. 99 ??? $34. 99. These prices are based on sizes 0 ??? 16.

Moreover, the consumer will be able to place orders, submit inquiries, give feedback on the items that were purchased, and offer suggestions for improvements. With the help of partner retailers and their websites, the company will be able to serve those consumers in rural areas. Levi Strauss will create a catalog that’s to be distributed quarterly to a large sample population surrounding each of the 5 outlet stores. The consumer will be able to place an order from an outlet store over the phone using the customer number related to the address or take advantage of order via mail.

The orders will be shipped directly to the consumer with a standard charge of $3. 99 for orders under $100, and shipped free of charge for orders over $100. Promotion Levi Strauss seeks to increase its market share through promotional innovation. The promotional plan and approach will be communicated through the company’s mission statement to its target market by incorporating the societal marketing concept. Mission Statement: The mission of the Company is to sustain responsible commercial success as a global marketing company of branded casual apparel.

This information will be collected and stored to allow the company to analyze and improve its websites and to provide customers with a fulfilling online experience. (Levi 2009) * With the use of a third party advertising company, Avenue A, LS & Co. will be able to have ads served on their behalf across the Internet. The advertising company will collect anonymous information about consumer’s visits to LS websites and other websites that the customer visits in order to provide ads about products that’s of interest to them. References Abrahams, Jeffrey. 1999). The Mission Statement Book: 301 Corporate Mission Statements From America’s Top Companies. California: Ten Speed Press. Fashion Avenue Trade Show. (2009). Retrieved May 30, 2009. http://www. fameshows. com. Gap’s Store for Baby Boomers Opens Today. (August 24, 2005). Los Angeles Times. Retrieved May 11, 2009, from http://articles. latimes. com/2005/aug/24/business/fi-gap24. Hello Metro. (2000). Retrieved May 16, 2009, from http://www. hellolittlerock. com/Census. Cfm. Hello Metro. (2000). Retrieved May 16, 2009, from http://www. hellochicago. com/Census.

Cfm. Hello Metro. (2000). Retrieved May 16, 2009, from http://www. hellodallas. com/Census. Cfm. Hello Metro. (2000). Retrieved May 16, 2009, from http://www. helloseattle. com/Census. Cfm. Kania, John and Slywotzky, Adrian J. (August 28, 2007). Anticipating Brand Opportunities: What Ever Happened to Burma-Shave? Pattern Thinkers Can Outsmart Brand Rivals in a Changing Marketplace. Lippincott Publications. Retrieved May 11, 2009, from http://www. lippincott-margulies. com/pdfs/a_kania01. pdf. Lee Jeans Touts Its One True Fit Jean The Choice of Hot Moms. 2005). Retrieved May 11, 2009, from http://www. vfc. com/index. php/news/press-releases? nws_id= 48E9C0EE-B5F4-2ECF-E040-0A0A580069C5. Levi Strauss. (2008). Retrieved May 26, 2009, from http://www. sourcewatch. org/index. php? title= Levi_Strauss Levi Strauss & Co. (2009). Retrieved May 10, 2009, from http://www. levistrauss. com/Company. Swedberg, Claire. (August 31, 2007). Two Singapore Fashion Retailers Use RFID to Track Inventory. RFiD Journal. Retrieved May 28, 2009, from http://www. rfidjournal. com/article/articleview/3721/1/1.