Marketing Report on Levis

ACKNOWLEDGEMENTS

Primarily thanking ALLAH Almighty for giving us such a bright opportunity to learn and polish our extravagant abilities.

Executive Summary

Levi Strauss and Co. is a privately held company owned by the family of its founder, LeviStrauss. The company was created about 130 years ago and currently is one of the leading apparel companies in the world. The company produces and sells a range of men's, women's and children's jeans and casual wear including cotton and cotton blend casual and dress casual pants, tops and seasonal pants and shirts, denim jackets, accessories, and footwear.1 The company has three major brands Levi¶s, Dockers, and Levi Strauss Signature. Even though Levi¶s brand image is very strong, it cannot maintain its brand image anymore as a result of missed fashion trends. Levi has to come up with new strategies to overcome its competitors that have brought new fashion trends and low price products to the apparel industry. Its competitors including VFC corporation, Gap, Abercrombie & Fitch, and Tommy Hilfiger have also gained strong brand images by producing their products at low cost and continue to gain perceived value in the industry. The apparel industry is considered a mature industry with numerous competitors. The competitors offer similar products and services that Levi can produce. Therefore, product differentiation will be the key issue in order to increase the perceived value of the new product. Intrepid International recommends that Levi Strauss should create a new premium denim brand. The new premium denim brand must be cheaper, high quality and a trendy design clothes. To produce cheaper, high quality and a trendy design clothes, the company must begin with a Cost Leadership Strategy. The company needs to implement a low-cost manufacturing process to increase margins. We believe there is still a lot of room for improvement. Once the company decreases its average total cost by adapting a Cost Leadership...