LEVI’S V/S BREAKOUT

Group membersMuhammad ZubairZaid Iftikhar

LEVI’S

• One of the world's largest apparel brand created in 1873.• The company is privately held by descendants of the family of Levi Strauss.• Headquarter is in San Francisco, California.• Levi Strauss & Co currently makes jeans in approximately 108 sizes and 20

finish fabrics.• Today, the Levi's® trademark is one of the most recognized in the world and is

registered in more than 160 countries.

INTRODUCTION

• In 1847, Levi Strauss with his family sailed for America where they joined Jonas & Louis in New York.

• In 1853, Levi sailed to San Francisco started selling clothing, bedding & linen to small stores in California.

• In 1902, Levi died and his two nephews inherited the business.

• In 1910’s, LS&CO. received “Blue Ribbon” highest award for waist overalls in Panama.

• In1930’s, the Great Depression stroke & demand for Levi’s jeans, shirts and jackets declined.

• In 1991, the first original Levi’s store was opened in United States. In 1994, Dockers brand was introduced in Europe. It launched its first website in 1995.In 1996; it introduced its Slates ® brand, a new style for men wearing. In 1999, classic 5 pocket pants were reinvented.

• In 2000, LS&CO. introduced Levi’s ® engineered jeans TM, the reinvention of jeans for the new generation.

STP

Segmentation• Demographic Segmentation

Age, Gender, Income, Generation, Occupation

• Geographic Segmentation

Levi's Americas Levi's Europe Levi's Asia

• Psychographic Segmentation

Life style, Culture, Social Class

PRODUCT MIX

Product JEANS ,SHIRTS ,COTTON ,PANTS ,BELTS ,SUN GLASSES ,WATCHES ,LADY BAGS, WALLETS ,SHOES AND JACKETSLevi’s brands• The Dockers • Levi's® • Signature by Levis Strauss • dENIZEN

Targeting• Upper Class• Upper Middle ClassPositioning• Positioning differs between countries, market segmentations. For

example, in Americas and much of Europe the emphasize in on jeans as casual attire.

• In contrast, Pakistanis wears indicate to the social fashion awareness and high status.

• For adolescents and youngster adults, who want to casual attire, engineers jeans by Levi's provide a unique fit and functional status..

PRICE

The pricing strategy of every company is very important, as the customers want the best goods at the lowest possible prices. 

• Levis has kept a price discrimination policy for all its products that are available in different countries.• Selling price varies in each country due to Costing, Politics & Social Influence. • As Levis is an established brand name, the company has kept the prices fixed for every region.• Product sold at listed price .

MARKETING MIXPlace• Levi's® brand of products are sold in 49 countries, Dockers® brand in 31 countries

and our Levi Strauss Signature™ brand in 4 countries.• In Pakistan there are total 24 outlets. 10 in Lahore, 1 in Faisalabad, 1 in Islamabad, 7 in

Karachi ,1 in multan,2 in Peshawar, 1 in Rawalpindi and 1 in Sialkot.Promotion• Majorly done by creating public relation• Since the Levi’s JEANS are in growth stage in Pakistan, Therefore, the promotional

strategy is based on persuading buyers.

Advertising• Competitive advertising• Institutional advertising

Advertising mediumsTelevision, Fashion Magazines, Newspapers, Internet, Bill boards, banners.

COMPETITORS OF LEVI’S

• Pepe Jeans

• GAP Jeans

• Lee(US Apparels)

Strength•High brand equity•Innovative edge•Range of variety•Durability of their products•High standard of quality

Weaknesses•Price factor considered to be expensive•No discount offering•No free delivery service

Opportunities•More opportunities towards women section•Recently started The Kid’s section require more attention•More persuasion towards sales promotion

ThreatsCompetitors at global level

SWOT Analysis

Net Income of Levi’s World wideNet income of Levi Strauss worldwide from 2005 to 2015. In 2015, Levi Strauss' net income amounted to 209.89 million U.S. dollars.

Levi’s Strategies• Drive the profitable core business• Expand the reach of our brands and build a more balanced

portfolio.• Leverage our global scale to develop a competitive cost

structure• Placing according to Class and Attributes,

Competitors ,Price. Quality and Technology.• Push & Pull promotional strategy • Highly focus on sales promotion• The factors count in retail locational decision are

demographics, traffic and access, competition ,site factors and cost factors.

INTRODUCTION

• Breakout emerged on the screen of fashion in year 2010. • Company owned by Mr. Imran Ghani and Mr. Musa khan• It is a mirror image of New York style, culture and

attitude.• It is one of the trendiest brands in Pakistan when it comes

to casual and fashionable street wear for girls, boys, men, women and kids. • Headquarter in Lahore Pakistan.

STPSegmentation Segmentation according to gender, age, income and occupation.TargetingCompany tends to build long term relation by providing best quality products atreasonable prices Upper medium class Medium class Upper lower classPositioningHighly trendy and fashionable outfits.

MARKETING MIX

Product attributesVariety Jeans, Shirts, belts, shoe, jackets, Sweaters, hoods,

mufflers/scarves, socks and accessoriesFeatures: up to date style Design: Latest cutsColor: different colors seen in their clothingSizes: Small (S), Medium(M),Large(L),(XL) and (XXL)

PRODUCT MIX-(PRICE)

List price: Product sold at listed price . Credit sales: Products are only sold for cash or on credit cardsDiscount: Breakout offers limited time” Discount offers”.

Specially at the end or change of the season.Price DeterminationCost of the product Affordable for the target market Demand of the product Uniqueness and innovative features of

the products

PRODUCT MIX-(PLACE)

ChannelsDirect selling channel Shortest and simplest form of distribution channelLocation Lahore ,Karachi, Islamabad, Rawalpindi, Multan,

Faisalabad, Gujranwala, Sialkot and Gujrat.

PRODUCT MIX-(PROMOTION)

The Breakout launch show started with jazzy media gathering hosted by supermodel Annie & Ahsan Khan.

Sales promotionBreakout is focusing on it public relation activities.Using messaging services for its loyal customers in order to inform them about discount

offers or any other new arrivalsAdvertising mediumsFashion Magazines NewspapersBill boards, banners

COMPETITORS

• Outfitters

• Engine

• Urban culture

• Stone age

SWOT ANALYSIS

Strengths• Timely innovation: adopt the change rapidly and bring innovative edge in their outfits• Price: Price is according to the quality they are offering.

Weaknesses• Promotional edge: not using television as a promotional medium.• Product line: not offering formal dresses

Opportunities• Market gap :Breakout can fill this gap by covering other geographical region of Pakistan• Extension in product line: Breakout can extend its product line by moving in formal dresses range or on Shalwar kameez side

Threats•Competitors•Close substitutes

BREAKOUT STRATEGIES

The major strategies which Breakout is using are In each retail outlets in Pakistan, company’s positioning strategy of

products are sameThe main strategy of the company is about their locational decision. Company deals with their customers directly from their outlets and they

don’t give their products to others as a sub brand.Company’s promotional strategy is that they place their ads on that

page of newspaper or magazines which are mostly seen by youngsters.Company put their ads on that channel of FM radio which are mostly

listened by youngsters

SUGGESTIONS

• Breakout should focus on their SWOT analysis. They have to clearly analyze that what their strengths are.

• Company should try to eliminate their weak ends for further growth .• They have to increase their product line for grapping more market share .

(e.g. Kurta, Shalwar kameez).• Never stop with innovation and focus on Levi’s saying to dream big, do more

and grow.• Company have to improve the efficiency of their channel as currently they

are just putting their products in their own outlets they should move towards retailer for their products.

SUGGESTIONS

• Company should pay attention towards their promotional activities they should go for Television as advertising medium in order to create awareness of their brand.

• Company should move towards other geographical regions in Pakistan as still there is market gap and company can successfully fill this gap by exploring opportunities in that regions of Pakistan.

• Company should explore the international opportunities by moving towards one or more country outside the Pakistan like India China through extensive international market research as breakout competitor “stoneage” is now moving towards international market.