Marketing Plan of Levi Strauss Brand - Research Proposal Example

Running Head: Essay Marketing Introduction A marketing plan is an important aspect of a company. It is this very plan which will outlay the aims and actions which are driving the company towards achievement of its business performance. In this paper I will concentrate on a case study of Levi Strauss brand. Levi Strauss is an American jeans and casual wear producer; it produces jeans, tops, shorts and work pants. This paper is making an analysis of marketing mix of a company in a fashion industry with analysis of Levi Strauss as the case study. Geographical attributes of Levi Strauss Levis Strauss is a global company with its headquarters situated in San Francisco in America. Other branches in the international markets include those in Europe, Middle East and Asia. It is this stretching out to the consumers of its products that puts the company at the wheel of the business. The company has developed a framework to come up with supermarket chains to stock its own products. This is a marketing strategy directed towards efficient customer service delivery. Growth of Levi Strauss The company is looking forward to tap into other economies in the world. This includes; France, Germany and the United Kingdom. To tap this region’s the company is working on a module to introduce its new brand of Jeans; this brand will trade at $26 cheaper than the initial brands. This new set of brand is more appealing to the youths since it portrays different qualitative techniques. Consequently Levi Strauss motto conceptualizes on customer service and satisfaction. It is these attributes which will aid or facilitate the growth of the company throughout the period. Workforce The company has been sapling with a huge employee scheme of approximately 2500. This huge staff has spurred the growth of the company, however in the recent times it was compelled to drop some of the members because of the tough economical times. However, Levi Strauss’s employees are a clear representation of the company’s main purpose in business. With name tags depicting the company’s mission and motto they effectively advertise the company in the market. It is cultures that serve a customer as if they were the breathing gadgets of the company Levi Strauss Fashion Market The company relies in the production of fashion products in the market these products are mainly cloth wear and specifically the jeans. The company majorly operates in a direct sales system. In this system the company is able to closely monitor its consumers. The consumer market is closely monitored by management to ensure that any changes in behaviors are adequately addressed in time before another competitor takes advantage. The recent move to appeal to the youths was a step to revive the company from its struggling periods. Besides other factors like supply, logistics and structure of the organization, the company must engross itself in ensuring that its sales objectives are met. One of the best steps to undertake to ensure that sales are made is the training of the representatives of the company. It is mainly through these representatives that the company is able to achieve or foster sales. A failure of the representation in the market will definitely lower the amount of sales projection. It is through representation that the image of the company is portrayed, new products are exhibited and information dissemination is achieved (Brickle, 2011). From the economic point of view, Levi Strauss is geographically situated in the urban area. It is in this particular locality that the company targets its main customers. Celebrities will tend to hail from the urban areas and never from the rural areas. The best candidates of fashion fall squarely on the celebrities in the global market. Thus, having profound representation in such market segment is very crucial for the company. This is a case where placement policy is intertwined with the objectives of the company. According to this policy there should co-exist a balance between demand and supply and on the other hand consumers and suppliers. An important role of distribution is to spearhead the buying process in the market. It is through this mechanism that a company reaches out to its customers. Competition Levi Strauss operates in a market economy which is characterized by a number of competitors in the industry this market can also be called competitive economy. In such markets the success of the company is also affected by the moves the competitor makes. It is not always about the professionalism exhibited by the workforce or the expert actions from management it also streams down to a competitor. The company’s main competitors in the industry are; Calvin Klein, Tommy Hilfiger and Gap Jeans (Agins 2000). Levi Strauss, has adverse competition in the global arena, however these competitors are classified according to the impact they have on its performance. The most monitored group is those targeting the same market are of Levi Strauss with almost same products for example, Calvin Klein. It is important for a company to place those competitors who are closely linked to its operations in check. Thus the process of competitor identification is very important to the company. It is through these processes that the company is able to formulate policies to shield itself from exploitation. Customers Levi Strauss produces a range of products. This means that it targets both male and female in the society. Its main customer base is America however; the company has opened its doors internationally to serve the fashion industry. The company has tried to differentiate its products to suit its customers. This is a marketing strategy which is adopted by many internationally companies to encompass the whole market base (Agins 2000). Apart from the consumer differentiation approach, the company has also addressed the financial base of its customers. The company has stocked varying qualities and quantities of its products to target a particular market. Fashion is not all about the rich it is all about everyone in the society; this is a rhetoric depicted by one of the company’s slogans of ensuring access to everyone. Thus, according to income budgets the company categorizes its customers into; low income base, medium income base and high income base and luxury clients. This is further presented in the table below: Low Budget Clients Medium and High income clients Luxury clients price is important in buying decision; easy use; Less experienced consumers; Buying decision is taken according to volume and prices quality package; values and aspirations; image; price is still important; more sophisticated consumers image; aspirations; sophisticated packaging; Innovation. Characteristics depicting consumer categories Marketing Mix of Levi Strauss The company adopts the following strategies for its product policies; product range and its size of growth, differentiation on lines of quality and the renewal concept of its products. In order to fully satisfy is customer; the company has to adopt a horizontal assortment mechanism. Being a company which is producing products which are immensely in demand in the market the company has to adopt measures to regulate its customer base. The best approach to achieve this is by ensuring a horizontal diversification strategy on its products. This will go a long way to address both the rich and the medium income earners in the market (Posner, 2011). A renewal strategy is the production of a new line of product within the existing products. This approach will be able to meet the customer demand because of the nature of the industry. The industry is culminated by numerous changes which dictate the direction of production. With customers feeling that they are wearing something distinct from another they are likely to come back often to check on new trends. Price policy of Levi Strauss The company should look at three dimensions of pricing; price level, diversification of the prices and the mobility of the prices to be adopted. Pricing is based on the product category and the customer who is targeted by the company. The company should clearly formulate a mechanism to adopt when it targets its customers. Middle income earners should not be priced like the luxury category (Lea-Greenwood, 2013). Pricing on most occasions depict the type of product in the market. Higher prices are mostly associated with high quality the same is inverse truth in the case of a cheap or lowly priced product. This company is built on a platform on the medium prices and customer exploitation should be put on check. Thus, the company adopts a value based pricing technique. The company analyses its products and varying them in accordance with the target market. Customers are likely to appreciate this method more this is according to statistics collected. Placement policy of Levi Strauss The main underlying factors in this category are; distribution channels, size of the distribution channels, company’s participation and at what degree does it influence its distribution channels, how elastic the goods are and finally, the logistics of the goods produced by the company. Levi Strauss applies the outlined distribution strategies; direct distribution which is basically aimed at achieving direct contact with the customers in the market. It also focuses on direct control of the market. By ensuring a high level of control the company will be able to address complaints from the customers accurately (Luther, 2001). The company further focuses on distribution via representatives in the field. These are company’s agents in ground acting on behalf of the company on marketing. The company stands a chance to offer efficient services because of the reduced time frame between an order and a delivery. The lead time is a determinant to customer satisfaction on response from the company. Promotional policy of Levi Strauss The activities characterized in the promotion of the company are majorly concentrated on improving the image of the company positively. This effort entails promoting the global image of the country, expanding the image of the company globally, conducting and improving ongoing promotional activities which are to be tailored to fit the circumstance. Employing the help of professional institutions to aid in the promotional endeavors, this strategy will further portray an institution to be capable and up to task. Adopting image expansion strategy will position the company in a concrete foundation. This strategy goes after improving the existing relations with the customers. While on the other hand undifferentiated strategy helps the company to spread its influence on the entire market. Levi Strauss adopts a catalogue form of promotion to depict its products out in the market. Various celebrity photos are associated with various products to portray how significant they are. Often times the company can also participate in contests on various occasions as a way of advertising its products in the market. This and other techniques adopted by the company entail the placement policy which is basically a central aspect in ensuring sales for an organization. Marketing communication strategies Communication mix is generally a combination of tools, mediums of communication, forms and areas. It is this factors which come up with strategies to entice the market which has developed its degree of intelligence over time. Levi Strauss establishes its main marketing drive by ensuring it lets its consumers to know the value and quality of its products. This is mainly done via various platforms hence content marketing strategy. Basically this is a mind share approach which will familiarize the customer about its products (Lea-Greenwood, 2013). Levi Strauss has developed a video coverage of its immense products, these videos majorly stream on various social media platforms for example, YouTube. This is meant to crasp the attention of the market and inculcates a feeling of satisfaction on product acquisition. It is also a mechanism by which the company can adequately summarize its message to the customers. Television adds is another area in which Levi Strauss has over time found important to utilize generally which is meant to target approximately 70% of the consumers (Posner, 2011). Spending heavily on mobile marketing has also pushed the income earning capabilities of Levi Strauss; it is this approach which has spearheaded the company further. It is approximated that 1.4 billion people have access to the mobile industry, and further 7 billion entering into the market each year. This means that a high population of consumers is able to visualize the advertisements when they are customized on the platform. Online platform is another section of the market where Levi Strauss has drifted to, it is the best approach as it saves on cost and time. Convenience is guaranteed for online marketing as it is very easy for a customer to make a request or purchase and the product delivered to them in a matter of minutes. Ranking Items Purchased by some % of buyers 1 Footwear 50.7 2 Cosmetics 46.0 3 Electronics 40.7 4 Home decorations 34.8 5 Gifts and toys 30.7 Ranking of best sold items in America over the internet Online fashion has had tremendous change over time in the company the only impediment remains that of logistics and handling costs associated with the process. Although the overheads experienced by the company are high they cannot surpass the profits gained from the whole approach. Levi Strauss financial statements depicts that online advertisement has been an integral unit in its performance (Luther 2001). Its ease to access the market has made e-commerce a better option as compared to the traditional approaches. E-commerce is a means which appeals to the target market more than any other approach. For example in America it is stipulated that 60% of retailers prefer an e-commerce approach. The table below shows the trend with an e-commerce approach in the in the American market. Brand name Year founded Revenue 2007 Revenue 2008 Revenue 2009 Jeans 2007 _ 1.00 1.22 Jackets 2008 0.02 0.05 0.08 Shots and Tops 2009 0.11 0.2 0.3 Levi Strauss employs the emotional marketing proposition in its pricing strategies. It has strived to associate its prices with quality and physical appearance. On its website it portrays massive discounts on some goods or purchase of a certain limit of products. It also tends to use the odd number pricing techniques for example $99, $199 and $59. It also attaches celebrity status to its products which spurs a lot of demand especially from the youths. Levi Strauss through its media platform has recorded tremendous gains which are associated with the intense and accurate dissemination of information. On e-commerce information is never delayed on any circumstances and with the continued emergence of the sector, the traditional approach will definitely be laid to rest. Some of the channels of communication to be embraced by a company in the present market include; face book, twitter, Google chat, blog, YouTube, LinkedIn among others. Conclusion and recommendations It is imperative that a Company’s position in the market should always be protected and weeded against any injurious outcomes that may crop. In this case a company being stable and favorably competing in the market like Levi Strauss it should be enshrined in product differentiation to take care of the customer base never neglecting any niche. The company must be able to address the needs of all in the society (Lea-Greenwood, 2013). A renewal assortment mechanism is very important to a company. It is this simple strategy that will keep the pool of customers already in the company. Customers will always want to feel that they are consuming the most recent products in the market and to achieve the highest satisfaction available. For example Levi Strauss is above the medium price in America but what characterizes the products is the quality of the products produced in the market. Levi Strauss needs to understand its customers and effectively give them what they deserve, in this way they will never be tormented in continual purchase of the products. A clear cut segregation of age, gender and occupation is very important to come up with a framework which is customer friendly (Luther, 2001). Communication at times can ensure a full functional company. For example if a company does not continuously update its customers, then they will never be aware of new products. By adopting e-commerce especially the company is able to frequently post its new designs which will be in the market. Finally, the lead time should be completely diminished in the company. This is the time between an order and a delivery. The company should ensure that orders are promptly answered to in doing so customers will be motivated to make the next purchase because they associate delivery time with efficiency of the company. References AGINS, T. (2000). The end of fashion how marketing changed the clothing business forever. New York, Quill. http://www.contentreserve.com/TitleInfo.asp?ID={664D0B96-70A6- 4CF4-8A1C-120DD476426D}&Format=410. BICKLE, M. C. (2011). Fashion marketing: theory, principles, & practice. New York, Fairchild Books. LEA-GREENWOOD, G. (2013). Fashion marketing communications. West Sussex, Wiley & Sons.http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nla bk&AN=490577. LUTHER, W. M. (2001). The marketing plan: how to prepare and implement it. New York, AMACOM. POSNER, H. (2011). Marketing fashion. London, Laurence King. Read More