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Marketing Management

Case Study : Jeans
8/1/2012

K J SOMAIYA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH

and have been so for decades. Lee. . boot cut and flare. jeans.INTRODUCTION Jeans are now a very popular form of casual dress around the world. Often the term "jeans" refers to a particular style of pants called "blue jeans" and invented by Jacob Davis and Levi Strauss in 1873. including skinny. Historic brands include Levi's. Jeans are trousers made from denim. however. They come in many styles and colors. Starting in the 1950s. "blue jeans" are particularly identified with American culture. and Wrangler. tapered. especially members of the greaser (subculture). especially the American Old West. originally designed for cowboys. Jeans come in various fits. straight. became popular among teenagers.

because they wore clothes made from it. which made jean cloth a dark blue colour. Strauss later changed his name from Leob to Levi. a man called Leob Strauss left his home in New York and moved to San Francisco. DYE: (v) to change the colour (n) used of a to PLANTATION: (n) a large farm where a single crop is grown something. and cotton plantations increased. The word 'denim' probably came from the name of a French material. jean cloth was made completely from cotton. called jean. The gold miners wanted clothes that were strong and did not tear easily. In 1853. The material. was named after sailors from Genoa in Italy. serge de Nimes: serge (a kind of material) from Nimes (a town in France). a dye taken from plants in the Americas and India. It was usually dyed with indigo.. supplying clothes. jean cloth was made from a mixture of things. in the eighteenth century as trade. The history of jeans Denim and jeans . However. slave labour. where he started a wholesale business. The 18th century At first. gold was found in California (not too far from San Francisco) and the famous Gold Rush began.where do the names come from? The word jeans comes from a kind of material that was made in Europe. chemical change colour The 19th century – The California Gold Rush In 1848. something's WHOLESALE BUSINESS (n) buying large amounts of something & selling it to shops . Workers wore it because the material was very strong and it did not wear out easily.

Levi sewed a leather label on their jeans. The label showed a picture of a pair of jeans that were being pulled between two horses. but he didn't have enough money. Hollywood made lots of western movies. This was to advertise how strong Levi jeans were: even two horses could not tear them apart. A man called Jacob Davis had the idea of using metal rivets (fasteners) to hold the pockets and the jeans together so that they wouldn't tear. Levi OFF DUTY: (v) time when a soldier is not working .Rivets A big problem with the miners' clothes were the pockets. which easily tore away from the jeans. DUDE RANCH: (n) a holiday resort in the western US where people can ride horses and pretend to be cowboys Many Americans who lived in the eastern states went for vacations on 'dude ranches' and took pairs of denim 'waist overalls' back east with them when they went home. After the war. Strauss accepted. but 'waist overalls' were introduced to the world by American soldiers.who often wore jeans in the movies-became very popular. Davis wanted to patent his idea. OVERALLS: (n) a loose fitting garment that covers the legs and chest How jeans became popular The 1930's: Westerns In the 1930's. The 1940's: War Fewer jeans were made during the time of World War 2. who sometimes wore them when they were off duty. In 1886. and he started making copper-riveted 'waist overalls' (as jeans were called then). Cowboys . he wrote to Levi Strauss and offered Strauss a deal if Strauss would pay for the patent. PATENT: (v) if you patent something it is legally your invention and other people RIVET: (n) a strong metal fastener cannot steal it. so in 1872.

Rival companies.began to sell their clothes outside the American West. RIVAL: something (n) in competition with you BAN: (v) forbid. Teenagers called the waist overalls 'jean pants' . Some schools in the USA banned students from wearing denim. The 1950's: Rebels In the 1950's. order people to stop doing something . like Wrangler and Lee. began to compete with Levi for a share of this new market. denim became popular with young people. It was the symbol of the teenage rebel in TV programmes and movies (like James Dean in the 1955 movie Rebel Without a Cause).and the name stayed.

The rock-and-roll generation gave way to the hip-hop crowd. The 1990's: Recession Things changed in the 1990s. Different styles of jeans were made.. Sales of jeans went up and up. A company that once had a 90 per cent of the market and made 90 per cent of its jeans in the US started to fray. Today it has branched out to khakis and other apparel and it now parcels out 90 per cent of its production far and wide so that it can have a leg up on the fast evolving market.The 1960's: Hippies & the Cold War In the 1960's many. Blue collar made way for the white. In many non-western countries.. The craze for jeans began to fade. The 1980's: Designer Jeans In the 1980's jeans finally became high fashion clothing. painted jeans. For the dot-com dudes. psychedelic jeans. Denims made way for Dockers. the sartorial key was khakis. . with their own labels on them. US companies said that they often received letters from people all around the world asking them to send the writer a pair of jeans. jeans became a symbol of 'Western decadence' and were very hard to get. when famous designers started making their own styles of jeans. many university and college students wore jeans. to match the 60's fashions: embroidered jeans.

shoes.LEVI’S Parent Company : Levi Strauss & Co. and others create tough competition. jackets make the company more profitable. Category : Apparel and Footwear Sector : Lifestyle and Retail Tagline : Go Forth USP : The brand id known for its denim apparels especially jeans. It is the oldest manufacturing company of jeans. Opportunity : The company has more than 5000 trademark registrations and pending applications in more than 180 countries. The choice of youth keeps on changing. so a company solely targeting youth needs to . It is registered in more than 160 countries. bags. STP Segmentation : Target : Positioning : SWOT Analysis Strengths : The main strength of Levi’s is its popularity. Losing market to newer and more trendier brands. It is a globally recognized brand all over the world. The company’s products are sold in more than 60000 outlets and in around 110 countries worldwide. Variety of products like T-shirts. lee. Competing prices with the rivals. Threats : Brands like pepe. Weakness : They only focus mainly on youth that makes company weaker in marketing areas.

Tagline : Bring it on. The company has strict code of conduct and quality with almost negligible attrition rate. The company is an Indian denim brand and hence has an Indian mass appeal. SPYKAR Parent company : Spykar Category : Apparel and accessories. The company has an in-house processing unit giving the company the competitive edge in consistently producing quality denims 4. Globus. Lifestyle. Positioning : With culture. 3. STP Segmentation : Men and women loving denims and western comfortable clothing. apart from the large format stores like Shopper's Stop. . Target : Young men and women from the urban areas.innovate a lot. Sector : Lifestyle and retail. SWOT Analysis Strengths : 1. and the exclusive outlets. Pantaloons etc. 2.SPYKAR is available at over 450 MBOs across the country. USP : The brand id known for its denim apparels especially jeans.

2. Similar designs available in other brands hence switching cost is less. Competitors 1. Opportunity : 1. Weakness : 1.Wrangler . The brand also has a stylish website giving complete information relating to its products. 2. Local market and international brands poses a risk. Spykar can benefit. campaigns and stores.The brand has tough competition and there is high brand switching 2. With 100 per cent FDI in single brand retail getting the nod and 51 per cent in multi-brand likely to happen. Limited global presence as it restricted to a small market. Threats: 1.Levis 2. Pepe 3.5. The Company can do aggressive marketing in colleges and youth events.

Target : Young urban Men and women from the upper middle class. which houses casual wear with a heart of London in it. PEPE JEANS History In 1973 it was originally just a weekend road side stall on the Portobello Road Market located in west London established by three brothers: Nitin Shah.3. Nitin and his two brothers later started their own company Sholemay Ltd trading. which is really innovative. Category : Apparel and accessories. STP Segmentation : Men and women who like contemporary style of fashion with a rebellious attitude. USP : A brand. Arun Shah and Milan Shah. as Pepe Jeans. Parent company : Pepe Jeans Incorporation. stylish changing with variety at an affordable price. Positioning : Pepe Jeans is a premium and international brand. . Sector : Lifestyle and Retail Tagline : Pepe Jeans London.

The brand has several competitors hence high brand switching. The brand should expand its products and services throughout the world. 2. The brand has always been constantly producing unique silhouettes. which was a big hit. The brand is the fastest growing denim brand and is 500 million denim and casual wear brand. which the brand is very famous for across Europe. 5. 6. The brand has signed international celebrity brand ambassadors which enhances the brand equity.SWOT Analysis Strengths : 1. The brand has a heavy brand following and is has a strong financial position in the denim industry. The brand has entered the elite segment of the top four denim producers in the world. 7. Pepe Jeans is present over 100 countries and employs more than 5000 employees all over the world. Constantly changing fashion trends means inventory issues 2. Opportunities : 1. 3. The brand had a different view of selling jeans and was against hanging them and even fought with the retailers to change this fashion. 4. Weakness : 1. . 8. The brand uses extensive advertising where the brand often teased the boundaries of acceptable social imaginary and norms. 2. The brand can enter into the kid’s wear segment. which had a big attraction among young consumers.

Switching cost between brands is very low. so there are regular price wars among competitors. Wrangler Wrangler Parent Company : VF Corporation Category : Apparel Sector : Lifestyle and Retail Tagline : There's a bit of the West in all of us. USP : Comfort and style at affordable rates.Threats : 1. Competitors 1. STP . levis is increasing never like before. Increasing Competition from brands like Lee. Levis 3. Lee 2. 2.

Threats 1. More global penetration and enhanced visibility. 2. lasting quality. Wrangler has a wide distribution channel.Companies are using new media to reach consumers 3. 2.Segmentation : Casual wear Target : Men and women from the urban upper middle class Positioning : Tough and rugged. Opportunity 1. With increased interest in their own flagship brands mass merchandisers like Walmart are beginning to decrease shelf space allocated to these premium denim brands. Lot of options available means high brand switching. Increasing competition 3. Good marketing and advertising at stores and print ads. They sell their jeans at mass merchandisers such as Walmart and Target.Competition from standalone specialty stores means limited market share growth 2. SWOT Analysis Strengths : 1. 3. Strong brand presence 4. Competitors . Denim industry is expected to grow at a faster rate 2. Fluctuating currency values and economic scenario. Weakness : 1. They also have their own flagship specialty stores located at many places.

Strong brand presence with over 1600 points of sale in the form of MBO’s with chains a. STP Segmentation : Fashion conscious and trendy youth Target : Youth from the Urban upper and upper middle class. Lifestyle and their exclusive brand outlets like Klounge in all Tier-1 cities. Killer for her. Pepe Jeans KILLER Parent company : KewalKiran Clothing Limited Category : Apparel and Accessories Sector : Lifestyle and Retail Tagline : Worship the night. like Shopper’s Stop. innerwear. What’s your cut? USP : India’s first international denim brand. Central. SWOT Analysis Strengths : 1. Diversification into other product line like Killer Tees. Positioning : Denim brand with an attitude. 2. eyewear .1. Lee 3. Levis 2. footwear.

Self-procurement and manufacturing facilities has been a great strength for the brand as it 5 units with an annual capacity of over 30 lakh pieces. The entry of several international players in the retail industry after opening up of FDI .to make it a complete lifestyle brand. The brand is facing increasing competition from the other sibling brands of the parent company like Lawman and Integriti which too are emerging in denim wear. 
3. Opportunity 1.
 2. Though the brand has stretched its portfolio with many diversifications it still has to heavily depend on denim wear for its revenues. The brand is facing increasing competition from the other sibling brands of the parent company like Lawman and Integriti which too are emerging in denim wear. 3.
2. South-East Asia since 1994. The brand effective in its advertising can also look at green campaigns which is attracting a lot of attention these days. Weakness 1. Africa. The brand can also start online stores for selling its merchandise as it has emerged as an effective medium for selling. Though the brand has stretched its portfolio with many diversifications it still has to heavily depend on denim wear for its revenues. Weakness 1. Brand has been termed as India’s first international denim wear brand with it exporting denim wear to Middle East.
 2. Innovative ad-campaigns have made a strong connect with the youth which is their main target audience. The government tax policies on apparel are set to increase the unit cost. Threats 1.
 3. USA. 
 3. The company can look to expand its manufacturing capabilities in emerging markets which would be a great boost for the brand.
 2. Highly fragmented fashion industry which would involve low customer loyalty.
4.

Flying machine.e. 49%.would also pose as a threat for the brand. The Market Share for Levis is the highest i. Market Share based on Gender : . Other brand includes UCB. Competitors 1. Levis 3. etc. Diesel Market Share Now let us see the market share of the above brands in India. Pepe Jeans 2. followed by Pepe at 14%. GAS.

we can .Average rating : Brand Loyalty In the end looking at all the brands and considering the brand loyalty of all the brands.

Bibliography http://en.org/wiki/Pepe_Jeans .conclude that Levis has the highest brand loyalty.wikipedia.org/wiki/Jeans http://en.wikipedia.