Levis Company Analysis

The company boasts of a signature brand that has withstood the trials of time for over a century. Other brands have come and gone but the company still exists. Their success has been attributed to good management and constant adaptation of the changing times, acknowledging consumer trends and preference developed in the clothing business. This global clothing line, manufactures both female and male apparels. It produces and markets its jeans and sport wear branded as, Dockers, Levi’s and Slates that covers all age groups. Its second objective is to establish self-sufficiency in all of its markets, therefore decreasing issues that might arise in terms of exports and imports and long supply lines. Its main issues are competitive advantage and the globalization of technology.

It faces problems in establishing suitable advertising and marketing strategies that will ensure its objectives and mission is attained. The mission statement at Levi Straus & Co. states that it aims "to sustain responsible commercial success as a global marketing company of branded apparel. Its basic function is to ensure effective communication between brand and consumers. Levis Strauss & Co. marketing objectives aims to promote superior products, improved service and create leadership in several market positions. It strives to preserve and protect the global brand it has built over the decades. The company has adopted the transnational strategy for its global expansion and sustenance strategy. They want to introduce their current products in to different markets like Russia. They are researching to identify the potential user group and the distribution channels for their products, targeting different specialist stores all over the country.

The company is also aiming to produce new products that are in line with consumer demand, for example the creation of engineered jeans and introducing new and bigger pockets in both jean and casual wear. Current research reveals that the company has a likelihood of immense growth with their new marketing strategy that enables it to tap into the new markets. Nonetheless, concerns have risen, questioning the competitors and low entry barriers it has witnessed in the new markets. From the year 2016, the company has dedicated itself towards the strengthening of its new brand and also regain lost confidence it the already existing brand. As a marketing strategy, the company aims to create good relationships with its customers and will rapidly respond to changes in consumer preference by developing, maintaining and updating their marketing information systems that will ensure they are ahead of consumer needs.

Marketing Information System Marketing information system can be defined as a process in which information if formally collected, analyzed, converted into strategy and finally distributed to respective managers depending of their job description on a regular basis. In developed countries the company has adopted the use of electronic media in order to monitor their stock levels therefore dodging costly stock-outs. The company should adopt social media advertising as a marketing strategy. Strengths • The company has a respected and renowned brand image • Quality products • Conscious understanding of the market • Has innovative products Weakness • High product pricings • Does not take account market evolution • Late adoption of social media as a marketing strategy. • Little to no direct consumer-producer communication. PESTEL Analysis Pest analysis is a framework that analyses political, economic, legal, environmental, socio-cultural and technological aspects of a business environment.

Below is an assessment of Levis Strauss &Co business environment; Legal Factors /Political Factors The company experiences different legal factors in different countries. Any promotional activity is regulated by individual governments. Culture prevents Levi’s production to produce in certain countries. In some countries jeans is rarely women while in others women are not able to wear such clothes, such a country is Saudi Arabia. Culture also prevents the company from promoting certain campaigns. Levi is currently striving to minimize the extent in which different cultures prevents it from making standardised promotional campaigns. The company’s peaceful clash with several cultures proves the strength of its global strategy that has not disrupted local cultures since the company went global. This statistics reveals the impact of jean production on the environment.

To compensate for the pollution made, Levi Strauss Co. gives back to charities and organizations that conserve the environment. It also uses paper products that are produced without chlorine to minimize pollution, it has reduced the number of packages and uses recycled products to reduce forest consumption. The company does not but paper or wood products originating from endangered forests. The ignorance of the company left them at a loss as they were no longer at the top of the market and were forced into cost cutting. They laid-off several employees and closed down several factories to survive the mishap. Nonetheless, it was able to peek up the pieces by adopting new and improved marketing and advertising strategies that ensured its survival in the now competitive market.

Below are top ten global jean brands between the year 2011 and 2016 Jean Apparel Competitor Mapping A. Men’s Jeans Future International Marketing plan To ensure success as stability as a global company, Levis Straus & Co. Additionally consumer mind-set about their product, prices set maintain brand image and consumer satisfaction. Levi Strauss & Co CSR Performance Data and Circular Economy Info graphic Year/Sustainability Water<Less Products: % Better Cotton: % of Worker Well-Being: Initiative of global product cotton procured from number of workers volume finished using sources adhering to helped through funding this process high environmental, to embed employee social and economic health, financial and standards well-being programs into their factory communities 2020 - Target 80% 100% 200,000 2017 – Result/Target 55%/55% 34%/30% 153,000/150,000 2016 – Result/Target 40%/35% 21%/17% 99,000/90,000 2015 – Result 28% 12% 64,000 2014 - Result 15% 6% 20,000 Value Chain Analysis In 1995 Levi Strauss was the leading market company for women jeans.

Nonetheless its position was being threatened, it was experiencing increased competition from the upcoming companies. These companies were redefining what jeans was, with new colors, styles, textures and better fit that met consumer perceptions. At that time research revealed that only 24% of the women were satisfied with Levi jeans. If the company did not acknowledge the value CCTC had on its marketing and value-chain analysis other competitors would have acquired the same system and the company would still be experiencing loses. Below is a value chain analysis of how Levis Straus & Co. creates value and competitive advantage; Conclusion The Levi Strauss Company is considered to be one of the world’s leading apparel company. The company was founded in 1853 by a German immigrant Levi Strauss who originally came from Bettelheim, Bavaria.