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Marketing Management

Case Study : Jeans
8/1/2012

K J SOMAIYA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH

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

a man called Leob Strauss left his home in New York and moved to San Francisco. slave labour. The word 'denim' probably came from the name of a French material. Workers wore it because the material was very strong and it did not wear out easily. jean cloth was made completely from cotton. where he started a wholesale business. supplying clothes. which made jean cloth a dark blue colour. It was usually dyed with indigo. However. because they wore clothes made from it. in the eighteenth century as trade.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. The gold miners wanted clothes that were strong and did not tear easily. The 18th century At first. something's WHOLESALE BUSINESS (n) buying large amounts of something & selling it to shops .. was named after sailors from Genoa in Italy. serge de Nimes: serge (a kind of material) from Nimes (a town in France). jean cloth was made from a mixture of things. Strauss later changed his name from Leob to Levi. a dye taken from plants in the Americas and India. and cotton plantations increased. called jean. The material. DYE: (v) to change the colour (n) used of a to PLANTATION: (n) a large farm where a single crop is grown something. gold was found in California (not too far from San Francisco) and the famous Gold Rush began. In 1853. The history of jeans Denim and 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. Levi sewed a leather label on their jeans. but 'waist overalls' were introduced to the world by American soldiers. 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. Davis wanted to patent his idea.who often wore jeans in the movies-became very popular. so in 1872. Cowboys . PATENT: (v) if you patent something it is legally your invention and other people RIVET: (n) a strong metal fastener cannot steal it. which easily tore away from the jeans. and he started making copper-riveted 'waist overalls' (as jeans were called then). who sometimes wore them when they were off duty.Rivets A big problem with the miners' clothes were the pockets. he wrote to Levi Strauss and offered Strauss a deal if Strauss would pay for the patent. This was to advertise how strong Levi jeans were: even two horses could not tear them apart. The 1940's: War Fewer jeans were made during the time of World War 2. The label showed a picture of a pair of jeans that were being pulled between two horses. OVERALLS: (n) a loose fitting garment that covers the legs and chest How jeans became popular The 1930's: Westerns In the 1930's. Levi OFF DUTY: (v) time when a soldier is not working . but he didn't have enough money. In 1886. Hollywood made lots of western movies. Strauss accepted.

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

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

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

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

Weakness : 1.The brand has tough competition and there is high brand switching 2. campaigns and stores. Spykar can benefit. Similar designs available in other brands hence switching cost is less.Levis 2. Competitors 1. Pepe 3. 2. Local market and international brands poses a risk. Opportunity : 1. 2.Wrangler .5. The brand also has a stylish website giving complete information relating to its products. Threats: 1. Limited global presence as it restricted to a small market. 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.

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

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

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

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

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

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

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

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

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