Levis Swot Analysis 5p3p6

Marketing Management Dr. Ahmed Shalaby

Marketing Analysis (SWOT) Levi’s Strauss & Co. (LS&Co.)

By: Haytham A. Saidum

Background History •

The company was founded in San Francisco, California by Levi Strauss in 1853 primarily selling wholesale dry goods.

• After few years ... they learned about the needs of the gold miners ... seeking a durable pair of pants, Strauss designed a pants from a heavy brown canvas. ( THE WORLD FIRST PAIR OF JEANS)

• By 1890 the popularity of their jeans and other dry goods had spread. Levi’s jeans were assigned a lot number “501” and sales had grown by year 1900.

•

During 1930s the western movies began to glamorize the blue jeans. Levi’s jeans became an even more valuable product during the World War 2. by the 50s & 60s Levi’s jeans became a fashion wear.

• By year 1975, sales had reached $1 billion and rose to $2 billion in 1979. Marketing Analysis

Marketing Analysis

Levi’s Strauss - The Company Inspiring people with a pioneering spirit.

Levi Strauss & Co. (LS&CO.) is one of the world's largest brand-name apparel marketers with sales in more than 110 countries. There is no other company with a comparable global presence in the jeans and casual pants markets. Today, the Levi's® trademark is one of the most recognized in the world and is ed in more than 160 countries. The company employs a staff of approximately more than 8,850 people worldwide, including approximately 1,000 people at its San Francisco, California headquarters. Levi Strauss & Co currently makes jeans in approximately 108 sizes and 20 finish fabrics. With 2009 net sales of $4.1 billion, the company is committed to building upon strong heritage and brand equity as they position the company for future growth. Marketing Analysis

Historical SWOT Analysis Strength

Weakness

Opportunities

Internal

50’s - 60’s - First American apparel trademark (Jeans). - Becoming a symbol of freedom, adventure. - Western movies began to glamorize blue jeans (1950) 80’s

- Levi’s 501 jeans were an icon & levi’s name is synonymous with jeans - Divisions seperation ------------------------------

Threats External

- Woodstock rock festival (Levi’s were the essential fashion for emerging baby boom generation). - Gals Market

- Not focus on the Core product ... Diversification is too much ------------------------------ Discontinued many licensing arrangement. - Closed 40 Factories. - Streamed lined staff. Reducing Payroll.

- Expanding retail opportunities/ Distribution (JC penny, Sears ...) ------------------------------ 36$ Million Advertising Campaign focused on the unique and personnel image reminding the customers of the uniqueness of levi’s brand.

------------------------------ Competition. - Shifts in the fashion trends. (Lee, Wrangler,..) - High price fashion image brands; CK, Bill Blass

Marketing Analysis

Historical SWOT Analysis Strength

Weakness Internal

80’s

- Diversification (Offering products that can fit in any lifestyle) - Corporate Strategy (Developing new strategy each division responsible for its Advertising)

End of - Introducing New the 80s - Casuals but with 90s continuing focus on their core jeans product.

Opportunities

Threats External

- Not Focus - People need more - Slow growth among diversity. (Product Mix) primary Market. - Women’s wear. - People see that levi’s is only Blue Jeans. - Competition (Lee, Wrangler..)

- Losing the Brand loyalty of the traditional Levi’s 501 jeans.

- Motivating customers to remain within the brand Levi’s

- Competition

- Introducing New Casuals to motivate customers. - Opportunities in new markets.

Marketing Analysis

General SWOT Analysis Strengths : • Levi’s enjoys high brand equity.

(People all around the world recognize the brand name.)

• Levi’s products are unique and innovative in the style. • A lot of variety is offered by Levi’s ranging from pants,

sunglasses to

skirts and shirts (Product Mix). • The products are renowned and are considered as the most durable. • Levi’s follows a high standard of quality. • Enhancing the consumer retail experience. Weakness: • Levi’s products are considered as expensive. Therefore a large percentage of people are reluctant to buy the products. • Many Competitors with better prices. • Weak in the information technology systems. Marketing Analysis

General SWOT Analysis Opportunities : • Levi’s can do more well in the women section. This section is give less importance as compared to the men section. • The kid’s section, which has been started from few years, should also be given proper attention to gain customers. • Sales promotion can be increased by increasing the ments expenses so as to enjoy a large number of customers. Threats: • Intense competition in the worldwide apparel industry could lead to reduced sales and prices. • The revenues are influenced by general economic conditions.

Marketing Analysis

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