levi's brand audit
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Divya LohiyaTRANSCRIPT
Brand Audit LEVI'S STRAUSS & CO. LIMITED
1 | AURO University
BRAND INVENTORY
LEVI STRAUSS & CO. LIMITED
Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions: Levi
Strauss Americas (LSA), based in the San Francisco headquarters; Levi Strauss Europe(LSE),
based in Brussels; and Levi Strauss Asia Pacific, Middle East and Africa(LSAMA), based in
Singapore. The company employs a staff of approximately 16,000 people worldwide.
The Levi's brand epitomizes classic American style. Since the invention by Levi Strauss in 1873,
Levi's jeans have captured the imagination and loyalty of people for generations. Levi’s has a
great selection of Levi's for men, women, juniors, boys and girls. From the classic 501 to the
slim straight 513, Levi’s have the newest skinny, straight and bootcut styles you’re looking for in
a variety of washes.
Levi's skinny jeans lift and lengthen for a flattering fit, waist to ankle. Find head-to-toe looks
with a range of capris, men’s shorts, tees, denim jackets, belts and Levi's shoes. With classic and
modern cuts, including slim fit and relaxed fit jeans, Levi's men's jeans have evolved when it
comes to style, comfort and durability.
The Levi's brand embodies a pioneering spirit, and Levi's® has always been driven to innovate.
Levi's jeans have been worn by everyone from all walks of life over the years. The company has
a common thread with a common promise: to provide quality clothing for men and women.
OWNERSHIP
Levi's have mechanisms in place intended to ensure family ownership. Levi Strauss & Co. is
privately held by the descendants of the family of Levi Strauss. Shares of company stock are not
publicly traded. Shares of Levi Strauss K.K., the company’s Japanese affiliate, are publicly
traded in Japan.In an age of public ownership and Wall Street capitalization, the firm remains a
family business owned and managed by Strauss descendants. The family has maintained Levi’s
philanthropic practices.
Brand Audit LEVI'S STRAUSS & CO. LIMITED
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BRAND AUDIT
Brand audit is concerned with the ‘behavioral & psychological’ nature of brand equity, not the
financial dimension, and it will be discussed in terms of the strength of a brand’s equity and its
nature. In the management of a brand, the building, strengthening, and nurturing of its equity will
lead to a more positive contribution to market value for the company. But from a strategic brand
management standpoint, one is concerned with measures that will help better manage that equity. If
successful, the financial value of a brand name will take care of itself.
The real benefit of conducting a brand audit is that it helps provide a look at the current state of
knowledge about a brand’s equity as well as providing a fresh understanding of the brand. It
will also provide a better understanding of what role advertising and other marketing
communication has played and can play in maintaining a brand.
LEVI STRAUSS & CO. LIMITED: Levi’s Strauss. It is one of the premium players in the apparel segment operating, globally. The point which is intriguing to a researcher is
how Levi’s has maintained its equity worldwide. A mix of standardization & localization
in Levi’s products has enabled the company to become a renowned brand worldwide.
Objective The reason for this brand review is to assess the organization's strength, incorporating its
image value. This report is in charge of assessing the Levi’s brands and contrasting how
the organization is getting along in respect to different brands in its industry and to offer
proposals for development or potential outcomes at brand expansion and focusing on
customer knowledge, taste and preference and also customer based brand equity.
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DESIGN ELEMENTS OF LEVI’S LOGO The famous red tab logo of Levi’s, which remains of the most recognizable logos ever created,
was introduced 63 years after Levi’s blue jeans was officially patented in 1873. The famous red
tab was unveiled in 1936.The highly legible and memorable Levi’s logo has been proved one of
the most result-oriented logos in design history.Levi’s red tab logo is a sheer display of brand’s
distinctiveness and iconic reputation. It conforms to the theme of individuality and fun by
showcasing the brand’s uniqueness. The red color in the Levi’s logo symbolizes energy,
determination and passion, while highlighting the brand’s youthful attributes of power,
explosiveness, rebellion and endurance.
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Brand Position Levi's to continue 'Go Forth' positioning with 'Ready to Work' effort, Levi’s launched Go Forth, a
new voice and campaign for the Levi’s brand and Levi’s 501 jeans. The campaign is inspired by the
passion Walt Whitman felt for the potential of America and promise of the future. Films were created to
demonstrate Levi’s awareness and relevance in the world through “America” and “Pioneers! Outdoor
and printed material evoked the spirit of the new pioneer—today’s progressive—by featuring such
optimistic statements as “Will work for better times,” “All I need is all I got,” and “Tough as your
spirit.” Combined with a digital re-editing of the Declaration of Independence and a call for young
pioneers to create a new portrait of America online, the Go Forth campaign infused new energy into an
authentic and beloved brand that had been somewhat quiet for too long.
Levi’s position the brand consistently as premium, but how that is defined differs across countries. So
what is premium in USA may not be premium in Europe. Relative to Europe Levi’s are less premium in
the U.S., because the price bands change. Levi’s is the Number One men’s and women’s jeans brand in
110 countries, so Levi’s challenge is to make sure that the brand remains relevant locally and leverages
local platforms.
Position Matrix
BRAND TARGET GROUP
BENEFIT REASON WHY BRAND CHARACTER
Levi’s 13 to 30, Urban, Lifestyle, Trend
Style, Comfort, Quality
Authentic, Innovative, Reliable
Original, High quality
Spykar 16 to 30 Style, Trendy, Quality
Fashionable, Value for money
Young, Vibrant
Pepe Jeans 16 to 25 Style, Quality Very trendy, Great comfort
International, Hip
Wrangler 12 to 30 Fit, Stitch Trendy, Value for money
Rugged, Very reliable
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Position Approach
• “Your Levi’s, Your Style” • Comfort, Fit and Style • “We Invented Blue Jeans” • Innovative and trendy • Classic yet modern
Target Audience The company makes clothes for men, women, children & teens. So everyone is a potential customer for
LEVI’S. LEVI’S generally appeals to more mature generations not necessarily looking to make fashion
statement. LEVI’S makes an effort to appeal to allcustomers in one way or another, which has been a
key to their success over the years. Assuming that the world population is growing LEVI’S can infer
that the market for jeans is also growing.
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Brand Portfolio
Levi Strauss & Co. brands are among the most celebrated names in the history of apparel. They are recognized for their quality, originality and integrity.
Levi’s
The Levi’s® brand epitomizes classic American style and effortless cool. Since the invention
and patent of riveted clothing by Jacob Davis and company founder Levi Strauss in 1873,
Levi’s® jeans have become the most recognizable and imitated clothing in the world —
capturing the imagination and loyalty of people for generations. And while the patent has long
since expired, the Levi’s® brand portfolio continues to evolve through a relentless pioneering
and innovative spirit that is unparalleled in the apparel industry.
Dockers
The Dockers® Brand has defined authentic khaki for 25 years. Since its introduction in 1986, the
Dockers® brand has been perfecting khakis — and the essential goods to go with them — for
men and women all over the world. No compromises in quality. Just versatile, essential
style.Levi’sstrauss& co. have taken an enduring, admired brand and made it stronger. More
styles. New fits. Bold colors. Levi’s strauss& co. have taken the category and reinvented it for
today.
Signature
In 2003, Levi’sstrauss& co. launched the Signature by Levi Strauss & Co.™ brand, giving the
value-conscious consumer access to high-quality, affordable and fashionable jeans and casual
wear from a trusted company and name. The collection includes a variety of products for men,
women and children, designed with the high quality construction and craftsmanship that makes
Levi Strauss & Co. famous. Each pair of jeans is carefully detailed with vintage-inspired finishes
and reinforced with triangle stitching and metal rivets for long-lasting style.
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denizen
Since 1873, Levi Strauss & Co. has been outfitting the world in denim. In the summer of 2011,
the dENiZEN® brand launched in the United States, providing great-fitting, great-looking, well-
made jeans exclusively to Target® shoppers in stores and on Target.com. With premium fabrics
and finishes and a variety of fits for the entire family, the dENiZEN® brand offers the quality
craftsmanship and authentic style that has made Levi Strauss & Co. world-famous for
generations. dENiZEN® jeans are the perfect fit for today’s active families, offering the perfect
balance of style and value.
Brand Audit LEVI'S STRAUSS & CO. LIMITED
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It is very important to realize the brand portfolio & product portfolio of the company, as it is very
important in defining the purview of the audit report. Table 2.0 describes the levistrauss partial
product & brand portfolio grid.
Levi-‐Strauss partial product & brand portfolio grid
DENIM PANTS NON-‐DENIM PANTS SHIRTS JACKETS OTHER
Levi’s Dockers Dockers Levi’s Strauss Signature
Levi’s 501 Levi’s Strauss Signature
Levi’s Strauss Signature
Levi’s Engineered Jeans
Other
PRODUCT PORTFOLIO BRAND PORTFOL IO
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Brand Attributes
Levi’s jeans are known for their high quality and long-lasting products. One of the distinctive
characteristics of Levi’s is they are made of a stain resistant material. Another specific attribute
is Levi’s Eco brand jeans, which are made of all recycled materials. In 1873 Levi Strauss and
Jacob Davis received a patent on the copper rivets that Levi’s still uses to make the jeans durable
and long lasting Their 501 Series jeans are the best selling and most popular type of jeans that
Levi’s makes. The jeans can be worn in almost every day-to-day situation. They are great work
pants that provide the protection needed in tough situations, but they are also stylish enough to
wear in social situations. There are 117 different types of men’s jeans and 123 women’s jeans
targeted towards people of all ages
PRODUCT 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
Varity
Design
Features Color
Size
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• VARIETY
Levi’s products today are perceived by many as a symbol of youth, freedom, confidence,
individualism, independence & comfort. LS & CO. provides a wide variety of products
including:JEANS, Shirts, Cotton Pants, Accessories:Belt, Sunglasses, Wallets, Lady Bag, Jacket,
Shoes
• Features:
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.
PLACE LEVI STRAUSS & CO. Ltd:Successful value creation needs successful value delivery.
Holistic marketers are increasingly taking a value network view of their businesses. Instead of
limiting their focus to their immediate suppliers, distributors, and consumers, they are examining
the whole supply chain that links raw materials, components, and manufactured goods and shows
how they move toward the final consumers. LEVI’S looks at customer segments and considers a
wide range of different possible means to sell, distribute, and service their offerings.
RETAIL OUTLETS: Marketing channels are sets of independent organizations involved in
the process of making a product or service available for use or consumption.
LEVI’S STRAUSS, one of the most respected apparel/clothing companies of the world, has
opened around 500 outlets at prime locations in India. (Source: Levi’s retail outlet,
Bhubaneswar). Aesthetically designed, the LEVI’S store offers wardrobe solutions to the
“INDEPENDENT MAN” through popular brands like LEVI’S RED, LEVI’S RED TAB,
LEVI’S SIGNATURE, & DOCKERS.
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DISTRIBUTION OBJECTIVES: LEVI STRAUSS & CO. Ltd: LEVI’S follows the following as its distribution objectives:
- To equalize the demand & supply of products at all places.
- To provide desired products at proper place.
- To fulfil the requirements of every locality according to the taste of the people.
- To increase the brand equity by reaching every corner of the world.
LEVI’S strategy for choosing channels is according to the product, mostly LEVI’S is limited to
its wholesalers, because the unit value is high & cost related issues occur.
LEVI’S is using selective but intensive distribution level for the distribution of its products.
Levi’s has also established a click and mortar strategy. Indeed the brand is available in stores,
and on the Internet. Levi’s clothing is sold in more than 110 countries. The brand owns more
than 500 stores in the whole world. Levi’s products are sold in their own stores, and in multi-
brands stores.
The Levi’s stores use the codes of the brand. Design is contemporary, raw and industrials.
Materials used are wood, aluminum and so on. Colors used are warm. Rooms are large. Finally,
it allows creating a warm and cozy atmosphere.
Moreover, Levi’s opened in many countries several concept stores, as for instance in Tokyo.
This concept store was created around the heritage and the values of the brand. The store is
designed with raw materials. As the flagship, the store looks like vintage, industrial and cozy at
the same time.
ANALYSIS OF THE DISTRIBUTION MODEL: Distribution model of LEVI’S in
India varies by the number of layers in the channel, the intermediaries used, and the number of
channel partners. LEVI’S makes a trade-off between the degree of control and the reach. The
goal is to find a balanced mix of approaches that confers a unique advantage depending on the
sophistication of the market. The figure depicts the distribution model of LEVI’S in India.
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Distribution Model: LEVI STRAUSS & CO. Ltd
LEVI’S plans to have more than one distribution model for different segments or regions. It uses
a distributer to serve small outlets but manages large ones directly through a small group at the
centre. It has also begun to open its own franchised retail shops to carry its own brand
exclusively.
PRICING: PRICING OBJECTIVE: LEVI’S (India)
Objective as far as price is concerned is sales oriented as LEVI’S has penetration plans in India.
This can be supported by the following facts:
-15 exclusive stores every year to be opened in India
-Eyeing metro malls and state capitals
-To enhance capacity from existing 32 vendors across India
-Expand offerings at low price points of Rs 999-1099
LEVI’S is accelerating its focus on low-priced street wear product initiative- LEVI’S SYKES,
which is expected to drive overall volumes and also penetration in non-metro markets. The
concept of a low-priced street wear sub-brand Sykes’ is a India-only strategy for the denim MNC
Levi Strauss. Sykes aim: to tap the youth in the age group of 15-19 who have a preference for
fast fashion, fads, and experimentation and higher receptivity to value for money proposition.
Organized Model
Distributor Model
Wholesaler Model
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PRICING STRATEGY: LEVI’S STRAUSS:As Levi’s has different products ranges for different
segments the pricing strategy of LEVI’S can be called as both penetrative as well as market
growth pricing.
LEVI’S'JEANS'LINES'
LEVI’S'RED'LEVI’S'VINTAGE'
PREMIUM'SPECIAL'EDITION'
LEVI’S'TYPE'1'PURE'BLUE'
ENGINEERED'JEANS'SILVER'TAB'
RED'TAB'
LEVI’S'STRAUSS'SIGNITURE'
LEVI’S'BR
AND'
LEVI'ST
RAUS
S'SIG
NITU
RE'
BRAN
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Trend'Ini<ators'
Trend'Influencers'
Early'Adopters'
Tradi<onal'
Value'Driven'
$145'K'$220'
$48'K'$110'
$35'K'$48'
$27'K'$30'
$Under'$30'
Compe&&ve(Advantage� Consumers'(Expecta&on� Conclusion�
Affordable Affordable Affordable
Low(to(Medium Premium(collec&on Wide(Price(Range
Wide(Price(range Free(Altera&on Frequent(Discount
Retail(Return(Free Free(shipping High(cost/performance
Free(Shipping(on($100+(order Free(Return(Shipping(Fee
Online(Student(Discount(20% Student(Discount
Frequent(Discount Frequent(Discount
High(cost/performance High(cost/performance
PRICING(STRATEGY(
Brand Audit LEVI'S STRAUSS & CO. LIMITED
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Communication Strategy
Levi’s have launched several events to promote their respective brands. For instance, in
1973, Levi’s launched the Levi’s ® Denim Art Contest and invited consumers to send photos of
their jeans and jackets decorated. A jury met to award the prize. In 1975, the winners were
touring American folk art museums. This example of event is a significant non-media
communication in order to involve customers and reinforce brand awareness.
To promote their brand, Levi’s have also launched several street marketing operations. In
2011, Levi’s deployed through the Red agency a promotional event around its Levi’s Curve ID
range. During April 2011, women of seven cities in France could take part in an animation of
street marketing called « safari fit »: they were invited to take their measurements in a special
cabin. Then, they could go to the store to try the Levi’s Curve ID adapted to their morphology. A
fashion designer issued them a sketch of their new silhouette. This was the second collaboration
of the brand with the Red agency, after the inauguration in 2009 of the Woman Levi’s Store of
Paris.
These events of Levi’s are just examples of the large number of non-media communication
operations they launched every year all over the world and are a part of their strategic brand
management.
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BRAND EXPLORATORY
Customer Knowledge: Purchasers have the imagined idea that Levi’s produces quality-enduring items in all divisions;
they are willing to put their cash in the name tediously. The continuous trust and dependability of
the buyers permit the brand to stay alive which leads to repetitive purchase. Not just are shoppers
trusting of the Levi’s brand, they are optimisticabout the product. Specifically, the Levi’s
product makes a man or lady feel hot yet refined, confident and trendy, and in many cases high
social status. These are all nice sentiments that numerous individuals craving to feel. Aside from
that shoppers have a imagethat Levi’s is a brand that increases the value of their identity as it is
thought to be one of the premium brands in pieces of clothing and design industry.
The brand identity prism applies human traits to a brand to recognize what consumers
actually think of the brand.
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Customer Based Brand Equity Model (C.B.B.E)
Resonance
Feelings Judgments
Imagery Performance
Salience Ø Durable Pair. Ø Leather Patches. Ø Denim Ø Best Jeans Ø Original Ø Authentic
Ø Durability Ø Fits Well Ø Serviceability Ø Tough Pairs Ø Stylish Design &
Rugged Style. Ø Masculine Ø Middle to upper
Class Ø Blue Collar Ø Young People Ø Rebellious
Ø Quality Ø Affordable Ø Good Value Ø Durable & Quality Ø Disparity with older
& Younger Segment. Ø Warmth Ø Security Ø Self-‐respect Ø Excitement Ø Social Approval Ø Status Freedom Ø Individuality Ø Strong & Favorable
Ø Attitudinal Attachment
Ø Sense of Community Ø Active Engagement.
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Brand Salience:
Achieving right brand identity involves creating right brand salience. It relates to the aspects of
consumer awareness/salience of the brand. It includes the place that is been occupied by brand in
the minds of the consumers.It stands for customer’s linkage with the name, logo, and symbol of
the brand.It includes the understanding of utility of brand for consumers and the category in
which it competes.
• Durable pair of jeans that could withstand rugged lifestyle.
• “Two Horse Brand “leather patches.
• First company to bring the Denim in the market.
• One of the best jeans maker company in the world.
• Original, Authentic youthful, Sexy.
• High Quality & Affordability.
Brand Performance:
• Levi's For Jeans that fit well: Levi's jeans fits well to te customers wearing satisfaction &
delight them in its comfort level.
• Durability: Levi's Jeans are long lasting by maintaining its quality.
• Serviceability
• A tough pair of jeans: Levi's jeans are very tough
• Stylish design and rugged style are the some of its USPs.
Brand Imagery:
• Masculine
• Dual Imagery: Middle-to-Upper Class to Blue Collar.
• Design and stitch for young people.
• Rugged, rebellious Personality (Personality).
• Affordable price, highly durable and reliable stuff.
• Has honor of first jeans making company and been the first trademark apparel
company.(History and heritage)
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Brand judgments:
It focuses upon customer personal opinions and evaluations with regard to the brand. Brand
judgments involve how customers put together all the different kind of opinions. Judgments are
made on the basis of perceive quality, credibility, consideration and superiority.
• Quality: Affordable, Good Value, Durable & Quality.
• Credibility: Classic, Original, Traditional.
• Consideration & Superiority: Disparity with older & younger Segments.
Brand feelings:
It is the customer’s emotional responses and reactions with the respect to the brand. Brand
feelings also relate to the social currency evoked by the brand. Feelings can be neutral, positive,
negative in nature. Some important brand building feelings for Levi's are:
Warmth, Security, Self-respect, Excitement, Social Approval, Status. Freedom, individuality, ,
adventurous streak, comfort and rebellious, Ruggedness, Strong & favorable,
Brand resonance:
It refers to the nature of the relationship that customers have with the brand and the extent to
which they feel that they are in “in synch” with the brand. It is characterize by the depth of
psychological bond that the customers have the brand.
Behavioral loyalty, Active engagement, Behavioral Loyalty, Attitudinal Attachment, Sense of
Community, Active Engagement.
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Sources of Brand Equity
Brand Associations
Blue Collar, Hard Working, Traditional, Strong, Rugged & Masculine
Appropriate for Outdoor work & Sasual Social Situations
Honest, Classic, Contemporary, Approachable, Independent & Universal.
Feelings of self-‐Conbidence & Assurance
Comfortable Fitting &
relaxing to wear
High Quality, Long Lasting &
Durable.
Blue Denim, Shrink-‐to-‐bit, Cotton Frabic, Button-‐bly, & small red pocket tag.
User Imagery
Usage Imagery
Brand personality
Symbolic Experiential
Functional
Product-‐Related
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Brand Values &personalities
Committed to brand Image.
Levi’s is authentic—and fiercely committed to maintaining and reinforcing that authenticity of
their products & brands.
• Empathy: Walking in others people's shoes. • Originality: Being authentic & innovative. • Integrity: Doing the right things. • Courage: Standing up forwhat they believe.
Values
• Real: Rooted in who they are and put values into action. • Adventurous: Seek adventure & encourage explorations. • Motivated: Remain focused & delivered on our promises. • ConWident: Freedom to be yourself
Personality
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Threats to Brand Equity Competitors
-‐ Saturation of the jeans market
-‐ Competition from products of the higher end of the market
-‐ Economic downturns in some countries
-‐ Fast changes in the consumer tastes
-‐ Local regulations on the advertisements in countries like India, china
-‐ Lack of protection of property rights
-‐ Increase in the local competition
-‐ 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
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Purchase Consideration
Points Of Parity (P.O.P) Points of difference (P.OD)
Jeans Manufacturer Pioneer in Blue Jeans
Middle -‐ Range Price Positioning Quality & Strength of the Products
Efficient Distribution Channel Authenticity of the Brand
-‐ Very Strong Brand Awareness
-‐ Rugged Style
-‐ High Durability
-‐ High Quality Leather Patches
-‐ One of the Oldest Jeans Brand
Others: Influx of New Competitors in the denim market. Rise of non-‐demin pants options (Leggings, Chinos, etc.) Both Blue Bell & VF Corp's Jeans are gaining market Share.
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Recommendation
The following recommendations will enable the Levi’s brand to achieve and sustain market
success. Recommendations include expanding the brand’s product portfolio and consumer’s
knowledge of the new products, incorporating celebrity endorsers to promote the products and
the brand, creation of a memorable jingle that will resonate with consumers as well as increased
participation in close-knit community events. Additionally, as the popularity of social
networking sites continues to grow, Levi’s will need to ensure its efforts across all social media
platforms are maintained continuously. Lastly, implementing a rewards program for consumers
to earn points towards future purchases will aid in consumer retention and help with product
consumption.
Anything that Levi’s can do to improve the lives of its consumers or make purchasing habits
easier should be at the forefront of all decision making. The overall goal of accomplishing the
aforementioned recommendations include increasing brand awareness, recognition,
memorability, and ultimately create a stronger brand image. It is also highly recommended that
the Levi’s brand maintain the highest level of integrity and customer retention when improving
its brand position in the marketplace.
CONCLUSION
Levi’s had a long journey to reach on today what it is& and the product, brand portfolio of the
brand. The pricing strategies are wide to cover more market share & recent developments in the
pricing strategies. Analysis of the distribution channel system of the brand, like from retailer is
what Levi’s do. Analysis of the marketing communication strategies adopted by Levi’s.
Analyzing the consumer preferences and tastes of the consumer from customer knowledge and
the entire brand building process. Analysis of the Customer based brand equity of the
brand.Comprehensive analysis of the threats from competitors.Analysis of a number of variables
while auditing a brand.
From the audit of Levi’s brand that to maintain sustainable brand equity Levi’s must keep a keen
eye on the change in the consumer tastes and preferences and well as the movement of the
competitors.
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