Levis Consolidate

Levi’s®
360o Revitalization of the Brand
Betty Wu
Cathy Chan
Charles Ok
Dennis Lin
Joyce Liu
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Who is in Levi’s®?
Charles in Levi’s?
2
Who is in Levi’s®?
Dennis in Levi’s?
3
Who is in Levi’s®?
Betty in Levi’s?
Joyce
in
Levi
’
s?
4
Cathy in Levi’s?
About Levi’s®
Agenda
Levi’s® History
Company Profile
Company Transformation
People’s Brand
Milestone of Levi’s®
Levi’s® US & Taiwan Markets
Brand
Distribution & Pricing
Promotion
The “Stay True“ Campaign 真我不受限
Customer Survey Analysis
Demographic Profile
Consumer Purchasing Behavior
Brand Awareness
Brand Loyalty
Conclusion
5
Levi’s® History
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1853
Mr. Levi Strauss, German immigrant, had canvas made
into overall / pants for gold mining workers in
California.
1873
Mr. Levi Strauss and his partner, Mr. David Jacobs
received patent by putting rivets in pants for strength,
which was first “blue jean”.
1890
Levi Strauss & Co. was incorporated with 18,000 stocks
to family and employees.
1974
Sales of Levi Strauss & Co. products had reached U$ 1
billion. (sales in 1880 was U$2.4 millions.)
1985
The company went to public in 1971 and was returned
to private control in 1985. ( still as private in 2006)
Company Profile
Company Type
: Private
Employees No.
: 10,000 as end of 2005
Incorporated
Sales Revenue
Net Income
Presence
Chairman
Brands
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: 1890
: U$4.1 billions ( Fiscal year 2005 )
One year growth : 1.3%
: U$156 millions ( Fiscal year 2005 )
Income growth 413.2%
: 110 countries ( Largest presence in
jean and casual pants markets)
: Robert D. Haas ( Relatives of Levi
Strauss )
: Levi’s, Dockers, Levi Strauss Signature
Company Transformation
Operated
5 factories
and profit
to U$1 mil
Government
declared
that jean is
essential
commodity for
War effort.
This contributed
to brand success
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Marketing for
young
baby boomers
and more
urban areas
Closed 58 US
manufacturing
plants
Diversification
to overseas
markets
Official outfitters
Shift from
Wholesales to
manufacturing
and branding
summer Olympic
Established
during WW II
Hollywood
gave a big
boost
Introduction
of Dockers
brand
1940’s
1950’s
1980’s
of US winter and
teams and staffs
Custom jeans
program
initiated
Marketing for
emerging
markets
: Eastern
Europe and
India
Last US domestic
plant shut its
door in 2003
(in San Antonio,
Texas)
Virtually
free of debt
in 1996
Strategic
partnership
with Wal-Mart
500
fortunes
Introduction
of Levi Strauss
Signature brand
1990’s
2000’s
People’s Brand
The new clothes [jeans]
express profoundly
democratic values. There are
no distinctions of wealth or
status, no elitism; people
confront one another shorn
of these distinctions.
Charles A. Reich, "The
Greening of America"
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The Last Chance Mine (1882).
Men working on coal mines in
their Levis durable pants
Milestone of Levi’s®
1872 :
Strengthen
with rivets
1890 :
Assigned 1st
lot No. : 501
●
●
●
●
●
●
●
●
●
1959 : Orange,
Lemon and
lime pants
1854 : used
serge de
Nimes : Denim
1886 : Two
horse brand
for Levi’s jean
10
●
1912 :
Koveralls
:first playsuits
for children
2006 : World
#1 maker
of brand-name
clothing
1996 : Original
spin, custom
jeans program
1922 : Belt
loops to
denim pants
1853 : Jean
pants with
canvas cloth
●
1960 : pre
shrunk
denim jeans
1986 :
Introduction
of Dockers :
upscale men’s
pants line
1964: StaPrest
permanentpress pants
●
●
●
●
2003 :
Introduction
of Levi Strauss
Signature
1996 : Slates
dress slacks
first marketed
About Levi’s®
Agenda
Levi’s® History
Company Profile
Company Transformation
People’s Brand
Milestone of Levi’s®
Levi’s® US & Taiwan Markets
Brand
Distribution & Pricing
Promotion
The “Stay True“ Campaign 真我不受限
Customer Survey Analysis
Demographic Profile
Consumer Purchasing Behavior
Brand Awareness
Brand Loyalty
Conclusion
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Brand
For both US & Taiwan market –
Brands
Current
Brand
Strategy
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Stylish Denim
Clothing
Casual Wear
Jeans for
Everyone
Target
Customer
15 to 25
years old
young
generation
25 and plus
25 and plus
Market
Position
Premium
Medium
Low
Levi’s® Branding in Taiwan
Brand
Story
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Brand
Culture
Customers
Prospects
Reputation
Influence
Old jean brand
reborn from 1990
Relationship
Influence
A pair of jeans
that will not
disappoint you
Experience
Influence
Stylish yet
comfortable
Symbolism
Influence
Authentic, original
jeans brand
Influencers
Current Brand
Strategy
To have the trend setter
Hiroshi Fujiwara,
using their brand first then
KENJI
influence the mass
Young
generation
actors & actress
Keep on innovating their
jeans base on their
archives
Edison, BOA
To have celebrities wearing
it and create the premium
value
American
cowboys
Emphasize on it’s American
heritage with vintage items
Distribution & Pricing
Strategy
In US
Majority through
Distribution wholesaler
Channel
Pricing
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•Department store
•Jeanery
•Hypermarket ( For
signature brand )
Optimum price for
quality jeans –
USD$25 per pair
Set at medium/low
pricing level
In Taiwan
50% wholesaler
50% Retailer
•Department store
•Jeanery
•Franchised shop
•Own boutique shop
Optimum price for quality
jeans –
USD$90 per pair
Set at premium pricing
level
Promotion
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Strategy
In US
In Taiwan
Consumer
Buying Habit
Due to distance to
the shop, usually
consumer will have a
decision made
already before go out
shopping
Due to people are out on
the street when they shop,
impulsive buying behavior
are more often to be
found
Advertisement
TV ad & print ad
heavily influence the
consumer selection
Promotion
Focus
TV ad is less important,
print ad and outdoor ad
as well as influencer
create the brand image
Television &
magazine promotion
Training on the Point of
Sales ( Customization )
Levi’s® PR in Taiwan
Fashion Magazines
Unisex
Luxury
RED / LVC / 501*
COOL,Bang
Others
M’s
W’s
Men’s Uno,
GQ
BAZZAR,
Vogue,ELLE,
Marie Claire,
TVBS
Weekly,
時報Weekly
Cosmopolitan,
With,Elle,
Girl E’f
Here,
Taipei
Walker,
FHM
*Seasonal Trend
*Local stylist
Endorsement
VIVI,Beauty,
Jasmine,
Holiday,
Sugar,
Cawaii,Mina
Cashbox
*Styling Cues
*In trend items
Luxury-Entry
N3BP / RL / 501*
Premium High
Type 1 / 501*
Premium
Red Tab
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C’est moi,
Hipper
Tactics
Men’s Style
*New concepts
inspiration
*Create brand
story
About Levi’s®
Agenda
Levi’s® History
Company Profile
Company Transformation
People’s Brand
Milestone of Levi’s®
Levi’s® US & Taiwan Markets
Brand
Distribution & Pricing
Promotion
The “Stay True“ Campaign 真我不受限
Customer Survey Analysis
Demographic Profile
Consumer Purchasing Behavior
Brand Awareness
Brand Loyalty
Conclusion
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Levi’s® Stay True Campaign
Objective
To strengthen Levi’s® original jeans proposition
and make it relevant to the youth
Strategy
Featuring 501® endorsed by Celebrities with
“True to Yourself” attitude using simple
English “Stay True” to communicate
Focus
Target on youth with coverage on both male and
female, mainstream and fashion forwarders
Marketing Plan
360 Degree Integrated Campaign
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Levi’s® Stay True 360
Campaign
Packaging
Products
Word-ofMouth
Advertising
PR&Publicity
Levi.com
Retail
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真我不受限
Stay True Campaign Calendar
Intro - Teaser
Launch
Sustain
Stay True TVC Campaign
Outdoor Advertising
Word of Mouth
Print Ad
Sales Volume
Celebrities
Seeding
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Media Trip Clippings
501® limited ed.
PR Editorials
Dept Store Promotion
Shopping Bag, Retail Display & Window
Internet BLOG
LEVI.COM eDM
Slogan Sticker Teaser
SS 04-SS 05
Oct 05
Nov 05 till Now
Packaging
Word-ofMouth
Advertising
PR&Publicity
Levi.com
Retail
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Word-of-Mouth Campaign
Stickers Teaser
Celebrities Sampling
BLOG
Products
Sticker Teaser
Objective :
Create buzz & mystic on the Stay True Campaign.
Stickers are cool and liked by youth as they can
make sticker arts like graffiti.
Message :
1. Advertising Slogan and shadow of celebrities
2. Launch of BLOG and LEVI.COM
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Local Celebrities Sampling
Editors & DJ - 劉軒
Band - 螺絲釘
Actress - 李康宜
Actor - 范植偉
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Singer張震嶽
張震嶽
Magazine Editorials
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BLOG Front Page
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Packaging
Products
Word-ofMouth
Advertising
PR&Publicity
Levi.com
Retail
Advertising Campaign & Key Visuals
TVC Campaign
Print & Outdoor Ad
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Print & Outdoor Campaign
Mass Transit Railway - Taipei
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Packaging
Products
Word-ofMouth
Advertising
PR&Publicity
Levi.com
Retail
LEVI’S.COM
e-DM to announce the campaign
Front Page & Site
Stay True Activities – Wallpaper / Screensaver download
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e-DM
Sent……October, 2005……
Reached……16,000 e-mail address……
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Site Front Page
On-line beginning on：
：October 2005 till Now
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Packaging
Products
Word-ofMouth
Advertising
PR&Publicity
Levi.com
Retail
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PR & Publicity
Media Trip to SFO (Heritage Trip)
TVC talents feature stories & interviews
Product editorials
San Francisco
Heritage Trip
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SFO
Media Trip
28-pages
Free editorials
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PR Clipping
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PR Achievements
58 pages of printed (Newspaper
& MGN) clippings
3 cover page of leading fashion
magazines
2 one-hour TV program
US $3.13 M free media generated
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Packaging
Word-ofMouth
Advertising
PR&Publicity
Levi.com
Retail
Products
Stay True & 501®
Exclusive Limited Edition
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Products
®
501
Series Collection
Limited Edition
Stay True 501®
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Packaging
Word-ofMouth
Advertising
PR&Publicity
Levi.com
Retail
Packaging
Stay True Educational Hangtag
Levi’s® Stay True Shopping Bag
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Products
Hangtag : to educate consumers why 501® is different
(Featured with Cone Mill XX17 fabric to justify premium)
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Stay True Shopping Bag
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Packaging
Word-ofMouth
Advertising
PR&Publicity
Retail
Window
Banner
Floor stickers & misc.
Retail Staff badge
In-store promotion
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Products
Levi.com
Retail
Retail Kit Per Channel Type
Floor
Sticker
Levi’s®
Store
Window
Dept Store
Display Spot
Banner
Jeanery
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Transparent
Bookmarker
Other In-store Media
Staff Badge
Catalogue
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About Levi’s®
Agenda
Levi’s® History
Company Profile
Company Transformation
People’s Brand
Milestone of Levi’s®
Levi’s® US & Taiwan Markets
Brand
Distribution & Pricing
Promotion
The “Stay True“ Campaign 真我不受限
Customer Survey Analysis
Demographic Profile
Consumer Purchasing Behavior
Brand Awareness
Brand Loyalty
Conclusion
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Demographic Profile
Survey Age Distribution
39-45
19%
Above 45
1%
18-24
5%
32-38
26%
Total Sample : 104
Valid Sample : 97
100% Taiwan resident
Age majority: 25~38
Equally distributed sex
45
25-31
47%
Survey Sex Distribution
Male
46%
Female
54%
Demographic Profile
Survey Occupation Distribution
Occupation majority:
Computer/Eletronics
7%
Education majority:
College/University or above
Annual income majority:
NT$250K~1,249K
12%
$750K$1,249K
28%
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$250K749K
52%
C onsumer Goods
Finance/Insurance/Real
Estate
Others
10%
2%
56%
1%
1%
$1,250K$1,750K1,749K
$2,124K
4%
3%
4%
Agriculture/C hemicals/For
estry
C omputers/Electronics
Education/Student
Survey Income Distribution
Under
$249K
12%
7%
Advertising/Marketing/PR
Services
Telecommunications/Netw
orking
Survey Education Distribution
$2,125K$2,749K
1%
Secondary
School
12%
College
University
or Above
88%
Consumer Purchasing Behavior
What are the Jeans Buyer Care the Most
Color
12%
Brand
3%
Trend
1%
Fit
25%
Quality
17%
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Only 3% of the Jeans
buyers care about the
brand
Price
17%
Style
25%
Brand Awareness
Only 3% of the Jeans buyers
care about the brand… but
21% regard Levi’s as Favorite
Brand
Favorite Jeans Brand
Blue Cult
Diesel 2% Tommy Hilfer
4%
2%
Wrangler
Jeans
2%
7 for All
Mankind
1%
Polo Jeans Co.
6%
Miss Sixty
8%
Lee Jeans
16%
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Others
38%
=Fit/Style/Price/Quality
Levis Strauss
21%
Brand Loyalty
Levi's Jeans Ownership
No
49%
Yes
51%
Future Purchase of Levi's
92% of the Levi’s owner
will like to buy Levi’s again
in the future
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Yes
70%
No
30%
Conclusion
• Market Share Expansion
Through “Stay True” campaign
– Levi’s® 501 series’ market share has increased from single
digit to nearly 16% in total Taiwan jeans market
– Levi’s® became the leading share jeans brand in Taiwan
market
501
25%
Others
75%
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Conclusion
• Brand Image Establishment
Quote from our survey
“ What do you think of Levi’s brand image ? Please use one
word / sentence to describe it “
Cool & Stylish
The authority of jeans
Strong personality
Evergreen brand
Healthy, young, cowboy, expensive
A 32-38 male said Levi's: Very expensive,
How
far can marketing
bring
your company
tothat
success?
unreasonably
expensive,
expensive
enough
only blind young people would buy…
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We Are ALL Levi’s® !!
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