Assignment On Promotions Management On Levis Marketing Essay

887 words (4 pages) Essay in Marketing

5/12/16 Marketing Reference this

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Invented in 1873, Levi’s jeans are the original, authentic jeans. They are the most successful, widely recognized, and often imitated clothing products in the history of apparel. Levi’s jeans have captured the attention, imagination, and loyalty of generations of diverse individuals.

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As the inventor of the category, the Levi’s brand continues to define Jeanswear with the widest range of products available, from quintessential classics, such as the famous Levi’s 501 Original jean, to favourite fits and styles in our Red Tabâ„¢ and Premium collections.

Segments and Strategies

The Levi’s Brand started with a jeans manufacturing brand only and later on expanded in other denim clothing as well. The products being served by Levi’s are Jeans, Shirts, Jackets, Tops, Shorts & Skirts and Accessories. The Levi’s Brand has mentioned on its website that it caters to people of all age groups. The 4 main categories are Men, Women, Juniors and Kids & Babies. Further more in these categories, the product line provides various variants on the basis of

Leg

Straight, Boot cut, Skinny etc.

Waist

Mid Rise, Low Rise, At the Waist

Wash

Medium, Dark, Light

The Jackets, Shirts, Blouse and Tops segment also features non-denim clothing. The accessories mainly include Leather Belts and Wallets.

The Strategy for targeting these segments is that Levi’s wants to be a universally accepted and appreciated brand. The company tries to associate Levi’s with Heritage as well as Style. The company depends on the strong brand equity that Levi’s enjoys for being the initiator of jeans culture. Levi’s came to India in 1995. Looking at a huge base of young customers, this brand did not have the classic runaway success it envisaged. The brand made the mistake that many multinationals made during those days: underestimate the Indian consumer and becoming too arrogant about their brands. Levi’s thought that Indian consumers will fall for this iconic brand and will buy it at any cost. At the time of launch this brand was prices exorbitantly high at Rs 2950. Indian consumers as usual gave the brand a lukewarm reception. The brand was trying to skim the market but at the cost of market share and volume.

Levi’s found that Indian consumers are very price sensitive and the prices were rationalised. Once the prices were made affordable, Levi’s began to gain acceptance in the Indian market.

Promotional Tools

Levi’s Brand attaches the word ‘Originals’ in all the promotions as they keep on reminding the consumers that they have been the original jeans brand since 1853. The famous line, “The Originals are still the Greatest” simply boasts the stature of the Brand. The Promotional Tools employed by Levi’s are Print Ads, E-Marketing, TV Spots, Exclusive stores, Websites, Publicity Events.

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The Celebrity Endorsements have been a strong promotional tool adopted by Levi’Akshay Kumar and Kangana Ranaut are the Current Faces of Levi’s Brand for 501 Jeans and Fit Jeans. Shah Rukh Khan also featured in the print ads of Uncensored Red Tab Levis Jeans. The International Ads of Levis usually features an old record song while showcasing the latest designs to give it that timeless feel. Many famous songs like Stand by Me and Superstitious have been used in the TV ads.

The Pull Strategy

Levi’s employs a Pull Strategy approach where they influence the behaviour of the target segment and the customers go and demand for the products. As such if the company tries to establish a Push strategy, it would increase the Inventory costs for the company and the Retailers dealing in the brand. A Pull strategy is used to let the consumers aware of the product or design being offered to them along with any Discount or exchange offer. Levis came with the option of buying jeans by paying in 3 months instalments with 0% interest rate to encourage people to spend more on their jeans. The discount coupons and promo coupons are also given through the retailers and the official website. Levis is known for its exchange offers where you can give away your old Levis jeans for a new pair at a lesser price.

Critical Appraisal

Levi’s has strong brand equity and is known worldwide for its quality products. While the start in India was a weak one, yet the brand has established itself as a frontrunner even in the Indian Market. The promotion of the brand has been more from the loyal customer base than the promotional tools. The brand keeps its customers happy and they in return become advocates of the brand. This Brand Loyalty is something that other brands are envious of. Levis has opened its Exclusive Stores in many places and this has resulted in more focus on the brand. The TV media should be used more by the brand as not many clearly remember the ads being aired. The promotional offers of discounts and exchange are one of the best tools implemented by Levi’s. The main revenues are being generated by the Brand Equity and Levi’s should keep laying stress on that in all their promotions.

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