M95CBS                                                                                                           PUNEET SINGH KALRA            

TABLE OF CONTENTS

  1. INTRODUCTION

Jeans suffered from sluggish demand between the period 1998 and 2000 in UK. Sales of jeans began a revival in 2001. This was followed by a boom in 2002 as denim became the season’s most fashionable trouser. In 2002, sales of jeans rose to £1.1 million.  Overall number of jeans sold in UK has grown considerably between 1998 and 2002, up by nearly 40%.  Sales are expected to grow in 2003 to £1.14 million (Ref 1).

  1. SITUATION ANALYSIS

Strengths

Company was founded in 1853 by Bavarian immigrant Levi Strauss, as Levi Strauss & Co (LS&CO.). Levi’s is one of the world ‘s largest brand-name apparel, which has sales in more than 100 countries. And there is no other company, which have a similar global presence in the jeans and casual pants market. Today, Levi’s trademark is one the most recognized in the world, which is registered in more than 160 countries (Ref 2).

 Levi’s is the UK largest jeans brand with around 15% market share of the jeans market. Levi’s has maintained its share of the market through its new product development. Levi’s jeans are the original and authentic jeans. They are the most successful, widely recognized jeans and often imitated clothing product in the history of apparel. It has captured the attention, imagination and loyalty of various kinds of people. Today, Levi’s brand is an authentic American icon, known the world over (Ref 3).

Opportunities

  1. 15-24 age group has grown at a much faster pace than other population as a whole. And this is an important age group for purchasing jeans and it has been part of the contributory factor towards the market growth.

  1. Number of women buying jeans has grown considerably. The women’s jeans market has benefited from a boom in fashion styling. Between 1999 and 2003, volume sales of women’s jeans grew by 127%.  

  1. Jeans are a major part of the U.K. wardrobe, worn on more occasions.
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  1. Market for jeans is projected to be increasingly fashionable. In the future, the jeans market will be increasingly sophisticated with greater levels of segmentation and targeting.
  2. A volume sale of Men’s jeans has grown by 20%, between 1999 and 2003.

(Ref 4)

So, the Company holds good opportunity to tap this growing market.

Weakness

Levi’s was losing favour with youthful fashion conscious consumers during the late 1990s. The brand was popular among adults who had worn Levi’s since their youth. But it fell into the trap of being thought as uncool, ...

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