Describe about the SWOT analysis of the product, Oppurtunity and Threats of Levi Strauss?
The report mainly channelizes with an introduction of the topic. The company profile will clear the brand image and products of the company, its industry repute and reputation in the market. A SWOT analysis has further done to understand the present market scene and the threats and opportunities that the company is facing right now in the market. The various threats and opportunities will tell the road map to growth as the market already has many players with same type of clothes and accessories. The objectives for development in market growth, profit maximisation and sales volume is discussed. The study will give us an intense understanding of the company and its various aspects.
Integrated marketing communication is "The coordination of various approaches to achieve the objectives of a marketing campaign with an effective use of various promotional activities that are intended with the aim to coordinate which each other”. The integrated marketing communication identifies various strategic roles of different communication paths that reach a combined effort to marketing. It is an activity of applying consistent brand messaging with both non-traditional and traditional marketing channels. The study finds out the goals which points at maximising sales volume, market share, and profit in the market. The situation of the market which is currently prevailing, is also analysed in the study. The factors like distribution, product market, and competition are also analysed. SWOT analysis is taken up in the study to understand the on -going market scene. The market strategies of 4p`s place, price, promotion and people have been discussed elaborately. Levi Strauss is the product is going to be discussed here.
Levi Strauss is an American apparel company well known for its denim wears. Founded in the year 1853, it is divided amongst three divisions. These divisions are situated in Europe, the Middle East and Singapore. 10,500 employees work for the company presently. The strategies of the company involve television advertisements featuring old music records. The brand image of the product is very well in the market. The level of cult customers of the products is too high. The product is very popular amongst that segment of the market, which believes in fashion and looking trendy. Even the showrooms of Levi Strauss are trendy and the ambience attracts the youngsters. Intensive study is done to get an insight of the market. A marketing plan will be made out of the factors that would come out during the study.
SWOT analysis of the product:
Levi Strauss stretches its market globally, where there are many other competitors selling the same line of products. In such a stiff market the survival is hard. In order to remain in the market, new strategies of marketing should be initiated. The study of internal and external forces can determine the weaknesses and strengths of the company (Aldridge, 2005). Levi Strauss has its market in accessories and clothing of the retail area. With the tagline of “ quality never goes out of style” the company claims to sell the oldest jeans with the best styles and designs. Middle and upper segment are its target customers. To increase the market it has to target the lower segment too.
1. The company owns 60 of it pants in the United States of America and 25 plant throughout the world. The demand for the products is too high in the international market (Etzel, Walker and Stanton, 2007).
2. Huge Market share: Ruling in the industry since 1853 the company has a very commendable knowledge of the market. This long existence must have reasons, which shows its efficiency. The company is aware of all the marketing strategies that the competitor can play against it.
3. The channels of distribution: The company has a huge distribution channel that makes the product available whole round the globe. Having such huge manufacturing plants the company has to have a very efficient sales and trade promotions to exist in the market.
4. It has 470 self owned stores in the world with 16000 plus employees. Retaining these employees is not an easy task. It is also matter of high reputation. The growth of the company is depended on this employees, this shows the highly efficient human resources management of the company. The turnover ratio of the employee is also low (Breward, 2003).
5. Retro popular songs: The most attractive thing about its advertisement is the Retro songs that it features in the videos. The stylish and trendy looks of the advertisements make the products very desirable.
1. The pressures that it faces from the market makes it lag behind sometimes in its strategies. In general, the company believes in attacking its competitors but if the competitors attack, it has to be ready with the defence plan.
2. When there exists competitor`s with almost same line of products, the scope to grow well stagnates. The cave to success becomes narrow. The company should not dwell in a stagnate market. There are very few factors, which would help make the difference. One of those factors is Quality and this factor is very important too.
Integrated marketing communication is "The coordination of various approaches to achieve the objectives of a marketing campaign with an effective use of various promotional activities that are intended with the aim to coordinate which each other”. The integrated marketing communication identifies various strategic roles of different communication paths that reach a combined effort to marketing. It is an activity of applying consistent brand messaging with both traditional and non-traditional marketing channels.
1. international market with less manufacturing cost: Due to some countries having cheap labours, the production cost may tend to low, low cost of land etc Levi`s Strauss gets this low production benefit since when it have 25 manufacturing plants across the globe (Groom, 2012). Lower rates of Products at home market are same sold out always by this manufacturing plant. As an opportunity the number of this kind of plants need to be increased to give a tough competition in the market and to beat others (Lake, 2015).
2. Growth of market of casual wear: As trend has changed the way of wearing the casuals to large number of people, which become the boon for this type of company. This is the very moment where Levi Strauss can expand its market and the jeans industry can do the business well, due to having a big opportunity. This is when, the company is having a chance to maximise its production and marketing. Here the idea is to warm up with new styles and designs along with different price ranges to let the other classes of the society become Levi Strauss`s delighted customers. To attract more customers, the company needs to look after whether it has much number of varieties and for this there should not have any compromise when quality is concerned(Jones, 2002).
3. Acceptance across the world market: The Company is having products and accessories which primarily produced to be worn by western people since few years but now a day the world has changed, people across the globe has accepted the western wears, they wear those garments, with great joy and style. Levi Strauss now just needs to look for more markets to sell out its products (Kerin, Hartley & Rudelius, 2011).
1. Trends with Rapid changes: Today’s world is very dynamic with the changing trend is which gives less time for everything. Less time to come up with newly planned designs, less ti, less time for the product manufacturing, for marketing also. This scarcity of time leads production to the loss, wastage of capital used for marketing.
2. Lack of property rights: It is a fact that, some countries are manufactures who are manufacturing jeans in the name of Levi Strauss and selling them with a very less price at market. The customer is not having knowledge enough to detect the quality to buy and they got it at a low price (Kerin, Hartley & Rudelius, 2013). As this is a common fact and it has ruined the customer count to the company. The company is unable to stop this because, as it happens in some other country (Kerin, Hartley & Rudelius, 2011).
3. Product substitution and Increase of competition: As previously mentioned, the company is facing many challenges in the market across the globe because of its competitors and their good image in the market (Kotler & Keller, 2009). The market is bounded as the competitors hold same accessories and products same as Levi Strauss. The company needs to look into various span of actions before launching its products work wide (Kotler & Armstrong, 2012). Sometimes there are big chances to face big failures.
There are four main competitors of Levi Strauss to compete with:
- Tom Hilfiger
Objectives to attain better sales:
1. The company can increase its promotional activities with lots of advertisements in fashion magazines.
2. The company should achieve sales more than targeted by more offers to the customers.
3. Conversion rate of the customers can be done by converting the competitor’s customers.
4. The distribution channel of the company should be increased by attractive sales and trade promotions.
5. The company can set up more manufacturing plant in those countries where the cost of manufacturing is less (Mc Daniel, 2009).
6. The enhancement of frequency of advertisements can be done in television.
7. The company targets mainly the middle and upper segment of the society. They should also come up with products which would also suits the lower segments to. Low prices can be offered for that segment. This would help the company to acquire another section of the society.
Objectives to attain better market share:
- New showrooms can be opened where there the company has not reached yet.
- Offering New designs in the market.
- Distribution channel should be increased.
Objectives on maximization of profit:
1. The principles of demand should be met by the entire product to which they have to maintain the similar status of good will in the market.
2. The company must have location expansion physically
3. Whenever there will be requirement the organization will be able to do restructuring internally.
4. To improve the Chanel by maintaining good relation with the Vendors.
5. To pave way to innovations by following the tendency (MuÌˆller, Alt & Michelis, 2011)/
6. To check on the updates about the competitors.
7. To implement and drive promotional planning’s in order to retain and attract new customers (Pride & Ferrell, 2010)
8. To advertise the product in a global forum by technological advancement.
9. The accessible customers should have the knowledge about the sale.
10. For purposes to be served later an up to date customer database must be developed.
11. It is very much necessary to execute a management on customer relationship in this Organization (Tracy,2014)
12. In the recent market introduction of new products must be done.
13. Maximizing profit and minimizing cost must be supported by not wasting resources and application of sufficient resources.
14. When a product is popular; it becomes clear that the product has reached the people hence brand awareness must be emphasized by Levi Strauss (Wilson, 2011)
Applying new strategies a company, the marketing strategy aims to increase its profit and sales. There are certain implemented long-term plans that help in attaining huge goal. The adopted strategies of a company, follows instructions, which are positive, well-defined and profound. This strategy helps to determine the goal-achieving capability of a company. There are two types of marketing strategy, they are interactive and Dynamic. They can be partly unplanned and partly planned. Long-term tools such as Customer lifetime value models can be very impactful helping to rouse the consequences of strategy on attainment. In order to gain the market share Levi Strauss can follow various strategies. Keeping in mind the 4p’s of marketing mix the strategies must be made. They are Price, Product, promotion and place.
Product : it is very much necessary to put the right product at its respective place and in a proper time. A company like Levi Strauss must possess the quality to make its product on hand in all units. One of the most popular outfit produced by Levi Strauss is Jeans, if the variety of jeans is available with various choices then the market be likely to explode.
Place: it is considered to be an important feature which helps in determining the appropriate distribution channel. It ensures whether the customers are receiving the product in the required place or not. If in the suitable geographic location, the outlets are not available then it becomes hard to make sure that the distributional channel is no correct . It clarifies the appropriate distributional channel. The accessibility of Levi Strauss outlet is proper. In every Shopping mall, small franchising outlets are also present. Yet there are markets where exploration is needed where the company can flourish its units for selling their products. Even after venturing the international market Levi Strauss focuses on markets that are yet to be explored (Brennan, Canning & McDowell, 2007).
Price: in case of every products price remains an important factor. It explains the worth that a customer makes of a item. The sustainability of a company somehow depends on price in the market. If the quality of the product and the price of the product does not matches then there are possibilities of the product be exceeded by its competitor and the existence of the product in the market to demolish. The cost of production, the added advantage of the product and the competitor’s price, are the prime factors that help in deciding the cost of a product. In places where Levis Strauss is yet to be reached, the company must initiate plans to reach.
Promotion: Marketing the manufactured goods in front of the consumer is called Promotion. Along with helping at selling the product, it also helps in solving the question on moving into the right direction for the company. It also helps to see whether the target customers is receiving what exactly the communicating message conveys. Levi Strauss is popular for its promotions and advertisements. Hence a little more stress must be given to those areas where the customers are not aware about Levi Strauss.
The report depicts the incorporated marketing communication and its influence on Competitiveness in Levi Strauss. The study is accurately and thoroughly done on the strategies that should be applied by the company. A SWOT analysis is done keeping the marketing mix that helped in analyzing the weakness, opportunities, strength and threats of the company. The scope of the expansion of the company is high n internal and external context. Though the market structure seems to be very steep yet there is no way that the scope of rising for Levi Strauss will fade away.
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