Marketing Management

Case Study : Jeans
8/1/2012

K J SOMAIYA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH

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

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

OVERALLS: (n) a loose fitting garment that covers the legs and chest How jeans became popular The 1930's: Westerns In the 1930's. he wrote to Levi Strauss and offered Strauss a deal if Strauss would pay for the patent. 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.who often wore jeans in the movies-became very popular. so in 1872. who sometimes wore them when they were off duty. Strauss accepted.Rivets A big problem with the miners' clothes were the pockets. Cowboys . In 1886. Hollywood made lots of western movies. Levi sewed a leather label on their jeans. Davis wanted to patent his idea. 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. The 1940's: War Fewer jeans were made during the time of World War 2. This was to advertise how strong Levi jeans were: even two horses could not tear them apart. Levi OFF DUTY: (v) time when a soldier is not working . but he didn't have enough money. The label showed a picture of a pair of jeans that were being pulled between two horses. PATENT: (v) if you patent something it is legally your invention and other people RIVET: (n) a strong metal fastener cannot steal it. but 'waist overalls' were introduced to the world by American soldiers. and he started making copper-riveted 'waist overalls' (as jeans were called then). After the war.

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

.. painted jeans. psychedelic jeans. Sales of jeans went up and up. The rock-and-roll generation gave way to the hip-hop crowd. Blue collar made way for the white. jeans became a symbol of 'Western decadence' and were very hard to get. The 1980's: Designer Jeans In the 1980's jeans finally became high fashion clothing. The craze for jeans began to fade. when famous designers started making their own styles of jeans. In many non-western countries. The 1990's: Recession Things changed in the 1990s. the sartorial key was khakis. 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.The 1960's: Hippies & the Cold War In the 1960's many. to match the 60's fashions: embroidered jeans. 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.. many university and college students wore jeans. For the dot-com dudes. Denims made way for Dockers. US companies said that they often received letters from people all around the world asking them to send the writer a pair of jeans. with their own labels on them. Different styles of jeans were made.

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

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

Weakness : 1. Opportunity : 1. Pepe 3.Levis 2. The brand also has a stylish website giving complete information relating to its products. Local market and international brands poses a risk. Similar designs available in other brands hence switching cost is less.Wrangler . 2. Spykar can benefit. campaigns and stores. Competitors 1. Limited global presence as it restricted to a small market.5. 2.The brand has tough competition and there is high brand switching 2. Threats: 1. With 100 per cent FDI in single brand retail getting the nod and 51 per cent in multi-brand likely to happen. The Company can do aggressive marketing in colleges and youth events.

Sector : Lifestyle and Retail Tagline : Pepe Jeans London. Arun Shah and Milan Shah. Category : Apparel and accessories. Target : Young urban Men and women from the upper middle class. 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. Parent company : Pepe Jeans Incorporation. USP : A brand. which is really innovative. Positioning : Pepe Jeans is a premium and international brand. . Nitin and his two brothers later started their own company Sholemay Ltd trading. which houses casual wear with a heart of London in it. as Pepe Jeans. stylish changing with variety at an affordable price. STP Segmentation : Men and women who like contemporary style of fashion with a rebellious attitude.3.

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

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

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

Central. Killer for her. Lee 3. Levis 2. innerwear. 2. like Shopper’s Stop. eyewear . Lifestyle and their exclusive brand outlets like Klounge in all Tier-1 cities. footwear. SWOT Analysis Strengths : 1. What’s your cut? USP : India’s first international denim brand. Pepe Jeans KILLER Parent company : KewalKiran Clothing Limited Category : Apparel and Accessories Sector : Lifestyle and Retail Tagline : Worship the night. Positioning : Denim brand with an attitude.1. Diversification into other product line like Killer Tees. 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.

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

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

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

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

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