LEVI’S Strauss & Co.
Levis Strauss & Co.
Overview of the Retailer
Created by: Yuto Sakurai Contact info: [email protected] Tel: 604-443-0430
LEVI’S Strauss & Co.
Table of Contents
I NTRODUCTION ...... 3 Company ...... 4 Organization ...... 4 History ...... 5
Product Description and Pricing ...... 6 Men’s Denim (Description and Pricing Based on North American Regions) ...... 6 Women’s Denim (Pricing based on North American Region) ...... 7
Target Market ...... 8 Marketing ...... 8 S.W.O.T. Analysis of Levi’s Strauss & Co...... 9 Competition ...... 9 Prospecting ...... 10 Pre-Approach ...... 10 The Approach ...... 10 Needs Discovery Questions ...... 11 Dominant Buying Motives ...... 12 Demonstration Details ...... 13 Demonstration for male prospects ...... 13 Demonstration for female prospects ...... 14
Objections/Questions ...... 15 Closing ...... 15 Servicing ...... 15 References ...... 16 Interviews ...... 16
LEVI’S Strauss & Co.
INTRODUCTION
Levi Strauss & Co. also known as LS&CO or simply Levi's, is a privately held American clothing company known worldwide for its Levi's brand of denim jeans. It was founded in 1873 when Levi Strauss came from Buttenheim,Bavaria, to San Francisco, California to open a west coast branch of his brothers' New York dry goods business. In 1873 Levi Strauss and tailor Jacob Davis received a U.S. patent to make the first riveted men's work pants out of denim: the first blue jeans. The company briefly experimented (in the 1970s) with a public stock listing, but remains owned and controlled by descendants and relatives of Levi Strauss's four nephews. The company's corporate headquarters is located at Levi's Plaza in San Francisco.
LEVI’S Strauss & Co.
Company
Organization
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, Middle East and Africa (LSEMA), based in Brussels; and Asia Pacific Division (APD), based in Singapore. The company employs a staff of approximately 10,500 people worldwide. The core Levi's was founded in 1873 in San Francisco, specializing in riveted denim jeans and different lines of casual and street fashion.
From the early 1960s through the mid 1970s, Levi Strauss experienced significant growth in its business as the more casual look of the 1960s and 1970s ushered in the "blue jeans craze" and served as a catalyst for the brand. Levi's, under the leadership of Walter Haas Jr., Peter Haas, Ed Combs, and Mel Bacharach, expanded the firm's clothing line by adding new fashions and models, including stone-washed jeans through the acquisition of Great Western Garment Co. (GWG), a Canadian clothing manufacturer, and introducing Permanent Press trousers under the Sta-prest name.
The company experienced rapid expansion of its manufacturing capacity from 16 plants to more than 63 plants in the United States from 1964 to 1974 and 25 overseas. The use of "pay for performance" manufacturing at the sewing machine operator level up.
In Vancouver, all the Levi’s Stores are franchised and owned different owners. The Levi’s Store in Metrotown Metropolis is owned by Below The Belt. Brian Rystephunk is the individual owner of the Metrotown location. The first Levi’s store he had opened was in Richmond Center in 1992. From there, the Metrotown location had opened in 1994, ParkRoyal and Guilford in 1995. Currently all the other locations have closed except for the Metrotown location. The Metrotown locations is now the only Levi’s Store in the lower mainland since the Robson street location had closed down in April of 2013.
LEVI’S Strauss & Co.
History Levi Strauss started the business at the 90 Sacramento Street address in San Francisco. He next moved the location to 62 Sacramento Street then 63 & 65 Sacramento Street.
Jacob Davis, a Jewish emigrant from Latvia, was a tailor who frequently purchased bolts of cloth made from hemp from Levi Strauss & Co.'s wholesale house. After one of Davis' customers kept purchasing cloth to reinforce torn pants, he had an idea to use copper rivets to reinforce the points of strain, such as on the pocket corners and at the base of the button fly. Davis did not have the required money to purchase a patent, so he wrote to Strauss suggesting that they go into business together. After Levi accepted Jacob's offer, on May 20, 1873, the two men received U.S. Patent 139,121 from the United States Patent and Trademark Office. The patented rivet was later incorporated into the company's jean design and advertisements. Contrary to an advertising campaign suggesting that Levi Strauss sold his first jeans to gold miners during the California Gold Rush (which peaked in 1849), the manufacturing of denim overalls only began in the 1870s. The company then created their first pair of Levis 501 Jeans in the 1890s, a style that went on to become the world's best-selling item of clothing.
Levi Strauss advertising sign
Modern jeans began to appear in the 1920s, but sales were largely confined to the working people of the western United States, such as cowboys, lumberjacks, and railroad workers. Levi’s jeans apparently were first introduced to the East during the dude ranch craze of the 1930s, when vacationing Easterners returned home with tales (and usually examples) of the hard-wearing pants with rivets. Another boost came in World War II, when blue jeans were declared an essential commodity and were sold only to people engaged in defense work.
LEVI’S Strauss & Co.
Product Description and Pricing
Men’s Denim (Description and Pricing Based on North American Regions) Style Number Description Price 510 Super Skinny $78 - $98 511 Skinny $78 - $108 513 Slim Taper $78 - $98 508 Taper $78 - $98 520 Taper (Wider waist/Thighs) $78 - $98 514 Slim Straight $78 - $108 516 High rise Slim (Discontinued in 2012) $60 - $65 501 Button Fly Original Straight $65 - $120 504 Regular Fit $78 - $108 505 Regular Straight Fit $65 - $120 527 Slim Boot Cut $78 - $108 559 Relaxed Straight $78 - $88 550 Relax Fit $78 - $88 567 Loose Fit Boot $78 - $88 569 Loose Fit $78 - $88 Premiums/Collaboration/etc. Capital E Vintage Series 511, 501, 505 $98 - $330 Commuter Series 511, 505 $88 - $120 Sta-Prest Series 511, 513 $78 - $98 Nike X Levi’s Collaboration Limited Edition Skinny leg $120 - $250 Stussy X Levis Limited Limited Edition Skinny or Straight Leg $120 - $250 Signature Jeans Only Sold in Department Stores $29.90 – $49.90
LEVI’S Strauss & Co.
Women’s Denim (Pricing based on North American Region)
Demi Skinny, Straight, Skinny Boot, Classic $78 - $148 Slight Skinny, Straight, Skinny Boot, Classic $78 - $148 Bold Skinny, Straight, Skinny Boot, Classic $78 - $148 Supreme Skinny, Straight, Skinny Boot, Classic (Only in U.S) $78 - $148 501 Skinny, Straight $88 - $110 Flare Wide Leg $68 - $88
LEVI’S Strauss & Co.
Target Market
The company makes clothes for men, women, teen and children. Levi’s denim appeals to more mature generations not necessarily looking to make a fashion statement. In recent years the company has come up with a new line for women called Curve ID which is a totally different concept of denim for women. Levi’s has also come up fashion denims for younger male. The company also targets denim lovers with high-end vintage denim and limited edition models. These high-end vintage denim and limited editions models are more popular in Asian countries such as Japan, Taiwan and Hong Kong. Levi’s specifies the target market by their various different styles so that anyone can own a pair but in different cuts of denim.
Marketing During the launch of Levi's Curve ID jeans, Levi launched a 5 week integrated marketing campaign that touched on experiential marketing, social media and outdoor events in shopping malls and city centers throughout the UK.
Brand ambassadors for Levi's encouraged women to find their perfect curve jeans shape in-store for the chance to win a £1000 Levi's shopping spree. The idea behind the campaign was to drive long-term engagement with the brand.
The company also promoted Curve ID on TV shows such as the Ellen DeGeneres to introduce the product to the world. They also have a demonstration Video on Youtube.com which explains how Curve ID works on women’s body.
LEVI’S Strauss & Co.
S.W.O.T. Analysis of Levi’s Strauss & Co.
Strengths Weaknesses -Brand name -High costs of brand protection -Finance and Access to international Capital -Lack if control over quality -Management -Distribution Conflicts -Distribution Channels and Global sourcing Opportunities Threats -Arising new market (Central Europe/Russia) -Saturation of Jean’s Market -Technological developments -Competitors from higher-end market -Low manufacturing and production costs -Fast Change in consumer tastes -Total market for casual wear is growing -Economic downturns in some countries -Lack of protection rights
Competition Levi’s competitors include Calvin Klein, True Religion, J Crew, The Gap, Tommy Hilfiger, Lee, and Wrangler. These are the main competitors for Men’s Denim. Another factor taking away from company sales has been the rise in Sears and J.C. Penny state brand name jeans. These department stores carry the same product at a cheaper price and this is why the actual Levi’s stores are sometimes struggling with selling the same product.
LEVI’S Strauss & Co.
Prospecting Prospecting is an important factor and a task to do before approaching the consumer. For Levi’s Strauss & Co, there is a wide range of selection of Denim and prospects. Depending on the demographics of the consumer, the company can determine which direction to prospect and figure out the customer’s needs and wants to satisfy each and one of them.
Pre-Approach Before approaching the customer, find out the age group that you are targeting. Levi’s clothes can be targeted for any age group so you need to make sure what type of prospect you are trying to approach. For Levi’s Strauss & Co., the prospect can be for youth, teen, young generation, older generation and the minority of the people who are denim lovers which are interested in high-end Denim jeans. As long as the prospect has a desire to wear denim, the prospect can be anyone. In order to approach the prospect, I need to have knowledge about the product and the competitor.
The Approach When meeting the prospect, the sales person should perform professional greetings to the customer and a friendly approach. By this time, the sales person should have a basic idea of what the prospect needs and wants are. The sales person should bring several types of demos which the prospect can feel and try. For female prospects, the sales person should bring the Curve ID measuring kit with them so that he/she can define the prospects curve and fit the prospect with the right curve.
LEVI’S Strauss & Co.
Needs Discovery Questions
• How old is the prospect? • Is the prospect looking to buy for style or comfort? • What time of fit is he/she looking for? (Skinny, Straight, Slim, etc.) • What is the prospect’s price range • What kind of problems does the prospect have when wearing Jeans • What type of body type does he/she have • Does she have knowledge about curve ID? (for female prospects) • What size does the prospect wear? (waist and length) • What type of color is she interested in? • What kind of problems or concerns does the prospect have when wearing jeans? • How does the prospect wash their Denim
LEVI’S Strauss & Co.
Dominant Buying Motives
The typical buying motives can be when one sees others wearing Levi’s denim. For older Levi’s regular customers, the buying motives are simple. These people come to get a new pair of Jeans because they either have previously owed a pair of Levis Denim or has been owning them for a long period of time and they liked the fit or the style so they come back to buy another pair. For youth, parents buy their children for the brand and the looks. Parents usually want their children to look good but the majority would be because of the brand name. For teen and young shoppers, the buying motives can be because of the brand, style and value. Unlike older generation shoppers, younger people care about looks, color, style and the value more than how comfortable the pants are. For female shopper, it is more about the comfort when wearing the pants. Most of the women, especially older women ages from 25 – 50 care about the fitting on their body rather than the style or the trend. As Curve ID had launched in the summer 2010, more and more women come in to the store to get good service and well-fitting denim.
LEVI’S Strauss & Co.
Demonstration Details
Demonstration for male prospects The main two products which must be demonstrated are the men’s Commuter series denim and the women’s Curve ID line. These two lines can be well demonstrated by operating a live demo in front of the prospect which can also help getting good understanding of the product from the prospect.
The Commuter series must be demonstrated to have the prospects good understanding about the Nano Fiber Technology. The Commuter series was specifically made for cyclers (commuters). The Nano Fiber Technology is used for the fabric so they are water resistant and dirt repellant. As going through the demonstration, the sales person can splash water on the denim to prove that the fabric is actually water resistant.
LEVI’S Strauss & Co.
Demonstration for female prospects
Curve ID was invented for women around the world. It was created to fit women into jeans comfortably by fit and not the size. There are 4 curves; Demi Curve, Slight Curve, Bold Curve and Supreme Curve. All 4 fit differently and also depending on one’s body shape. There is a specific way of measuring and all the staff who works at the Levi’s store or the company has a tool kit which helps determine which curve you fit into. Another way of finding out your curve can be done online at the Levi’s website; however, it is not 100% right. This is why all the staffs are specifically taught how to measure and determine the person curve. Since the launch of Curve ID and the demonstrations and the services that we provide, women’s sales dramatically increased. Sometimes male staffs have a hard time measuring women because women feel uncomfortable being measured. Most of the times, we must explain what Curve ID is and how it works before even fitting them into jeans.
LEVI’S Strauss & Co.
Objections/Questions A lot of times, the questions or objections from the customer are “How long does the denim last?” “Does the color fade?” “Does it shrink in the waist or in the length?” These are the types of questions that are frequently asked; however, these questions are solved by most of the staffs who work in-store.
Other specific questions can be answered through Levis.com or on the call with our operator in both Canada and U.S.
Closing Closing a deal always comes with adding value for the consumer. This stage is another important part of doing business with the consumer because the company wants good repetition so that the consumers will come back to purchase another product from our company. At this point of the stage, value-added service is another important factor to maintain a “win, win” situation and to have a good relationship with the consumer.
Servicing
Many of the Levi’s stores across North America has a tailoring service in-store which provides aftercare for the Denim which the customer had purchased. Quite often, when a customer purchases a pair of Denim, people have problems with the length and usually they have to get it hemmed. From experiencing this factor, many of the Levi’s stores a across the world has set up a tailoring booth either in-store or somewhere else but affiliated with the company.
If any problems such as unusual rips or fades, Levi’s has a customer service line set up to help customers problem solving. The number for this is 1-888-501-LEVI. Our company will kindly corporate and do a replace or refund in most cases.
LEVI’S Strauss & Co.
References Levi strauss & co. . (n.d.). Retrieved from www.levis.com
Levi strauss & co. (n.d.). Retrieved from www.levis.ca
Super list | levi strauss & co. (n.d.). Retrieved from http://www.levistrauss.com/sustainability/product/supplier-list
Wikipedia. (2011, 01). Retrieved from http://en.wikipedia.org/wiki/Levi_Strauss_&_Co.
Interviews Levi’s Store Metro Town – Lynda Narayan (Store Manager) Metropolis at Metrotown 4800 Kingsway Burnaby, BC V5H 4J2 604-438-5384