Brand Audit

Presented By:
Rahul Vatsayan (08DM031)
Rajan Jha (08DM032)
Kushan Kumar(08DM018)
 INTRODUCTION

Brand Audit
§Behavioral and Psychological nature of Brand Equity

§Provides a look on current Brand Equity status

§Provides an insight into marketing and advertising

efforts and future requirements

Levis Strauss
§Established in 1853 by Levi Strauss
§
§A premium brand in apparel segment operating globally

§Headquartered at San Fransisco with total Employee

Base of 10,000+
 Levis Product & Brand
Portfolio

PRODUCT PORTFOLIO
DENIM NON- SHIRTS JACKETS OTHE
PANTS
LEVI’S DENIM
DOCKERS DOCKERS LEVI’S R
Portfolio

LEVI’S 501 PANTS

LEVI’S LEVI’S SIGNATUR
LEVI’S SIGNATU SIGNATU E
ENGINEERED
OTHER RE RE
JEANS
Brand
 EXTERNAL MARKETING
ENVIRONMENT

Demographic Environment
§Focuses more on mature generation
§Does not position itself as a brand for
fashion statement
§
Social Environment

Classification of Customers
Liberated Youngsters (%)
13
Modern Customers 18
Behind the times 20
Rebellious Youngsters 22
Orthodox Customers 27
 E X T E R N A L MARKETING
E N V IR O N M E N T

Technological Environment
§Levis focuses on internet advertising

§Levis has enhanced its distribution network through Electronic

Data Interchange (EDI)

§Levis Value Delivery Network Enables coordinated supply of

fabric to retailers and suppliers

§Focus on achieving global scope efficiency through

decentralization and centralization
 SITUATIONAL ANALYSIS

§Levis is approaching to saturation in the Jeans Market

§Development of markets distribution and sales technology has caused loss

of market share

§Levis biggest challenege is to cater changing consumer tastes and

competition in lower and high end brands

§Levis has come up with new engineered jeans and Levis 501 in response to
above challenges
COMPETITOR ANALYSIS
PRODUCT LIFECYCLE

Data Source : www.levis.com

 PRODUCT LIFECYCLE
ANALYSIS
PRODUCT

PRESENT NEW

MARKET PENETRATION PRODUCT DEVELOPMENT

Aggressive Sales Promotion Product Innovation

PRESENT

M Big Pocket Jeans

EMI Based Pricing
A Increased Advertising Spending
New Engineered Jeans
501
Increased exclusive stores

R
K
E MARKET DEVELOPMENT DIVERSIFICATION

T Enhanced Distribution Channels Footwear and Accessories

NEW
 Levis Distribution Channel
Management
Retail Outlet Status
§500 outlets at prime locations in India
§Current Space: 1 million sq feet
§3000 shades and design
§Accessories includes : Footwear/ Eye gear/ Caps/
Belts/ Wallets/ Carry bags

Marketing Channels
§Focus on retail relationship

Segments Identified
§Trend Initiators
§Trend Influencer
§Early adopters
§Traditional
§Value driven

Selective but Intensive

distribution level for
distribution
Levis Pricing
 Levis Pricing: Recent
Development
§Plans to focus on lower and high end by vacating the middle price
segment

§Premium segment will see a price rise of 15% in average pricing

§Local brands entry and low growth compelled levis to vacate the
middle price segment (Spykar, Killer, Wrangler)
 Levis Promotion

The “TWIST” Campaign

The “ ODYSSEY” Campaign

CSR Activity with Levis Strauss Foundation

 SWOT Analysis
STRENGTHS
 
üHistory
üBrand name
üFinance and access to international capital
üManagement
üExpertise in the jeans industry (R&D)
üDistribution channels & global sourcing

WEAKNESSES
 
üHigh costs of brand protection
üLack of control over quality (licensing)
üLack of control over distribution decisions (retailers pressure to stop selling
on the web)
 
 SWOT Analysis

OPPORTUNITIES :
 
üArising of new market segments
üTechnological development lower production and coordination activities
üLow manufacturing and production costs in international markets
üDevelopment in other industries such as electronic (MP3 PLAYER) could pose new
opportunities for complementing new LEVI’S products
üTotal market for casual wear is growing

 
 
 
THREATS
 
Saturation of the jeans market
Competition from products of the higher end of the market
Economic downturns in some countries
Fast changes in the consumer tastes
Local regulations on the advertisements in countries like India, china
Lack of protection of property rights
Increase in the local competition
 Research Methodology

Research objectives
-Accessing the strength of brand equity(awareness/preference,
effects of price)

-Core loyalty
-
-Profiling the brand users
-
-Brand image ownership (attributes, subjective considerations,
emotions associated with the brand)

-Brand attitude
 Study Results

DESCRIBING SURVEY RESPONDENTS

AVERAGE AGE 24.29

OCCUPATION
STUDENT 57
JOB 35
OWNED BUSINESS 08
USER TYPE
CONSERVATIVE 50
OUTGOING 23.52
CUTTING EDGE 38.23
AVERAGE INCOME 21,308.83
 BRAND AWARENESS & SALIENCE

TOMR FOR LEVI’S IS 38

TOMR FOR SPYKAR IS 26

TOMR FOR WRANGLER IS 20

 BRAND PREFERENCE

Results suggest: perceived alternatives to Levi's

SpyKar, wrangler, lee are the preferred alternatives
 Profiling: Brand Usage

qLEVI’S can be considered as a ‘young brand’ as average age of

users is 25
q50% of the users are ‘outgoing’ customers
qUsers have enough purchasing power as average income is nearly
20,000
qLevi’s is considered as clothing for special occasions which
represents its equity
 Price Elasticity

Results

qLevi’s possesses a higher upside elasticity as compared to

downside elasticity
qPerceived equity of the brand is represented
qDifference between upside and downside elasticity is
positive (72-62=10)
qSales do not drop much if price is increased
 Choice & Brand Equity

RESULTS

qBrand name plays the most important role in customer buying

process
q‘Part worth’ of each of the variables is clearly explained
 Brand Image Ownership

RESULTS:
qCustomers consider Levi's as a brand with good product
quality majorly(35.29)
qThese enables us to paint a good picture of how customers
‘see’ Levi's as a brand.
 Brand Attitude

Importance of benefits/benefit claims to customers: (% of

respondents)
Benefits essential Desirable Not required
Brand name 52.94 44.11 5.88
Design/style 47.058 44.11 11.76
Price 41.17 47.058 14.70
Product 61.76 35.29 5.88
quality
 Comparative Analysis : Brand Name

BRANDS DELIVERS OKAY JOB DOES NOT

LEVI’S BENEFIT
50 29.41 DELIVER
20.58
SPYKAR 47.05 41.17 14.70
WRANGLER 26.47 50 26.48
LEE 47.05 29.41 23.52

RESULTS:
Levi’s is the leader in delivering the brand name benefit
20.58% of respondents feel Levi's does not deliver benefit
Only 14.70% of respondents feel that SpyKar does not deliver benefit
at all
 Comparative Analysis :Design/Style

BRAND DELIVERS OKAY JOB DOES NOT

LEVI’S BENEFIT
61.76 14.70 DELIVER
26.47
SPYKAR 23.52 52.94 26.47
WRANGLER 32.35 44.11 20.58
LEE 32.35 32.35 38.23

RESULTS:
Levi’s again emerges to be a leader in delivering the design/style
benefit
Only 20.58% of respondents say wrangler does not deliver the
benefit at all as compared to levi’s 26.47%
 Comparative Analysis: Price Benefit

BRAND DELIVERS OKAY JOB DOES NOT

LEVI’S BENEFIT
47.05 29.41 DELIVER
23.52
SPYKAR 41.17 38.23 20.58
WRANGLER 26.47 41.17 32.35
LEE 29.41 32.35 41.17

LEVI’S is facing tough competition in this category as only

20.58% of respondents feel SpyKar does not deliver benefit as
compared to 23.52% .
 Comparative Analysis: Product
Quality

BRAND DELIVERS OKAY JOB DOES NOT

LEVI’S BENEFIT
52.94 20.58 DELIVER
29.41
SPYKAR 50 32.35 20.58
WRANGLER 29.41 41.17 32.35
LEE 35.29 26.47 41.17
Thank You