- 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.
- 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, by youths, who does not want to be seen wearing the same styles as their parents. Levi’s also suffered from deteriorating financial position, which prompted a series of downgrades from credit rating agencies (Ref 5).
Threats
Grey import poses a threat to the company like Levi’s having high profile brand. Tesco has sourced Levi’s jeans from grey market. There was a legal battle between Tesco and Levi’s. Levi’s won the battle on the ground that it has the right to select who can sell its jeans and supermarket like Tesco was not right kind of environment to sell its jeans.
There is also increasing competition from supermarkets and many other local players, which are offering their Jeans much cheaper than Levi’s.
(Ref 6)
The main aim of this Plan is to increase the sales of Levi’s product; repositioning Levi’s in the consumer market and increase the market share of the company within UK market.
OBJECTIVES
Corporate Objectives
- To capture the growing market of customers.
- To improve the financial position of the company.
Marketing Objectives
- To increase the number of retailers selling the Levi’s products.
- To increase the companies sales in UK.
- To increase the market share within UK market.
Marketing Communication Objectives
- To reposition Levi’s as one of the most fashionable, exciting, unique and original jeans available in the market.
- To Position new Levi’s Engineered Jeans and Levi’s Type 1 jeans among the jeans market as a cool and innovative fashion product in UK.
- To make Levi’s as first choice jeans among 60% of retailers.
- To raise awareness among the growing market specially age group between 15-24 and women.
- To change the attitude of the consumers towards jeans in a way that makes jeans suitable for most of occasions.
STRATEGY
This plan involves mixture of Push, Pull and Profile strategy to achieve the required objectives.
Pull Strategy
Pull strategy involves communicating with targeted consumers with the purpose to persuade them to create demand for the company’s product. This strategy will help the Levi’s company to reposition its product and change the image of the company to be cool and innovative fashion product in the minds of the final consumers. And the successful implementation of this strategy can result in final consumers demanding the Levi’s jeans from retailers, then retailers will ask the wholesalers, and then wholesalers will ask the company. 45% of available resources will be allocated to this strategy.
Push Strategy
Push strategy relies on the next link in the distribution chain e.g. wholesalers or retailers to push out the products to the customer. To achieve the objective of increased number of retail outlets and making Levi’s as their first choice, Push strategy is essential.45% of available resources will be allocated to this strategy.
Profile Strategy
Profile strategy is essential for the company in order that it is better understood by its stakeholders. Levi’s four core values – empathy, originality, integrity and courage underlie how it competes in the market and how it behaves. This strategy is also essential for attracting investors towards the company. 10% of available resources will be allocated to this strategy.
PROMOTIONAL MIX
Promotional mix to support Pull Strategy
Advertising
Advertising plays an important role in promoting the product of the company. Levi’s has produced very innovative advertisements in the past. Levi’s ‘Twist’ campaign lead to 28% rise in consumers acknowledging Levi’s as a producer of new and interesting products (Ref 7).
Television will be used to reach the large audience to raise their awareness and change their attitude about Levi’s product. Television advertisement is to be made in a way, which demonstrates Levi’s as cool and innovative Jeans. Advertisement in FHM magazine (UK biggest selling men’s magazine) will be used to raise the awareness among men and magazine like New Woman and J-17 will be used to capture the fast growing market of women. Internet advertisement will be used to raise the awareness among teenagers.
Sales promotion
Sales promotion will be used to stimulate customers to buy the Levi’s jeans. Customers will be offered 5 to 10 % discount (depending upon which Jeans are they buying) on Levi’s product. This will help in boosting the demand.
Direct Marketing
Company’s website () will be used to inform the customer about its new jeans; creating image of its product as most fashionable, innovative, unique, cool and original; selling the jeans from the website itself and finally having the feedback from the customers. Customers will be asked to subscribe to Levi’s email newsletter and to fill in its marketing survey.
Sponsorship
Levi’s will be sponsoring Football matches to increase the customer loyalty and improving the image of the company.
Promotional mix to support Push Strategy
Personnel Selling
Personal selling task is not only to sell the product but also to inform the customers about new product, its uses, and much more. So, Levi’s company sales force will be kept informed about the company new product launches, will be trained to make them aware about what kind of Levi’s jean will suit a particular customer, and how to use or wash the jeans, etc.
Sales promotion
New retailers and existing retailers will be given 5% discounts if they purchase more than 500 Levi’s jeans in order to prompt them to give more shelf space to the Levi’s
Products. High quality sales literature will be distributed to retailers to raise their awareness about the company’s product.
Advertising
Advertising in fashion and clothing magazine will raise the prompted and spontaneous awareness among the wholesalers, distributors and retailers. Hence, persuade them to stock the Levi’s jeans in their stores.
Direct Marketing
Levi’s website will be used to get the bulk orders from the retailers and also for having feedback from the retailers regarding customer views about the product.
Promotional mix to support Profile Strategy
Public relations
Press releases will be used to inform the public about its new offerings and its past performance.
Employee conferences
Employee’s conferences will be held every month to motivate the employees and increase their morale. They will be asked to give their views on company’s decisions.
Newsletter
Newsletter will be distributed to all employees to keep them informed about the company.
BUDGET
Total budget being £ 4.4 million has been allocated between Pull, Push and Profile strategy in the following way: -
(amount in £000)
Total amount of £ 350,000 has been allocated for marketing research and surveys.
SCHEDULE
For the purpose of scheduling promotional activities, the year has been divided into four quarters (Q1, Q2, Q3, and Q4)
Schedule
(In the diagram,
Y implies application of that particular promotional tool in that particular period.
N implies non-application of that particular promotional tool in that particular period.)
REFERENCES
- Mintel Report, Jeans UK, April 2003
-
(Accessed 29 Nov, 2003 )
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(Accessed 3 Dec, 2003)
- Mintel Report, Jeans UK, April 2003
- Mintel Report, Jeans UK, April 2003
- Mintel Report, Jeans UK, April 2003
-
(Accessed 14 Dec,2003)
- BIBLIOGRAPHY
-
Fill, C; 1999; Marketing Communications: contexts, contents and strategies; 2nd edition; Hertfordshire (UK); Prentice Hall Europe.
- Varey, Richard J; 2002; Marketing Communication: principles and practice; Routedge
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Smith, P R; 2001; Marketing Communications: an integrated approach; 3rd edition; Kogan Page
- Mintel Report, Jeans UK, April 2003
- Levi’s Annual Report ; Financial year 2002
- http://www.fastcompany.com/magazine/64/smartcompany.html