Marketing : Blue Jeans Assignment

International American University

Kings College _{Architecting Future}

Kathmandu, Nepal

Assignment 4

 Coordinator: Mr. Sanat Neupane

 Date of Submission: June 27, 2013

 Submitted by:

Bikram Prajapati

ID. No.: 13-S-3043

Identify the major competitors in the blue jeans market. Who has the leading market share, whose shares have declined? What segmentation is (has) occurring/occurred in the blue jeans market and why? Did demographic changes affect the market (from baby boomers to Gen X or Gen Y)? What competitive signs, symbols, events, or occurrences did Levi-Strauss miss? What current shifts in competition and channel power is occurring and what can Levi-Strauss do to minimize the impact from these changes? 

Introduction

Jeans are trousers made from denim or dungaree cloth. Often the term "jeans" refers to a particular style of trousers called "blue jeans" and invented by Jacob Davis and Levi Strauss in 1873. Starting in the 1950s, jeans, originally designed for cowboys, became popular among teenagers, especially members of the greaser subculture. Jeans were first designed as durable trousers for farmworkers and miners in the states of the American west. A Nevada tailor, Jacob Davis, had the idea of using copper bolt sat the corner of the pockets to make them stronger. They became popular instantly and soon many people bought them.

During this period, men’s jeans had the zipper down the front, whereas women’s jeans had the zipper down the right side. After James Dean popularized them in the movie Rebel without a Cause, wearing jeans became a symbol of youth rebellion during the 1950s. Because of this, they   banned in theaters, restaurants and schools. During the 1960s the wearing of jeans became more acceptable, and by the 1970s it had become general fashion in the United States for casual wear.

Customers usually look for style first then narrow it down to the color of their choice and the size that fits them. Jeans is a huge trend in nowadays as it is very comfortable, durable and preferred by many people not considering the age bar.

The market leader in the technology of “distressing”  Denmin, Armani, Dolce and Gabbana and Yves St. Laurent among its client in higher end and levis Strauss lee, wrangler and gap in the low end. Some of Levi’s competitors include:––Calvin Klein, Gap Jeans, VF Corp (Lee, Wrangler), Tommy Hilfiger Diesel.

Some Brands of Jeans are

Levis: Damn cool brand, superb fitting. Stylish look. The best brand for jeans. Slogan story; Quality never goes out of style

Wrangler: Superb fitting. Stylish look. The best brand for jeans. Wrangler is an American manufacturer of jeans and other clothing items.

Diesel: Best fit and design no comparison miles ahead from competitor .A complete lifestyle brand known for its luxury and at young adult market .Their main product Diesel jeans is expensive and only available to a select few market. Most celebrities wear this and the logo strip on the right pocket makes it amazing.

Calvin kelvin: No other jeans got the quality and comfort better than CK... Simply the best in business

Lee jeans:  Very best fit for chubby guys probably it was fast reach to latest for men as well as women. The brand has been known as one of the top jeans producers all over the world.

Among all the jeans Levis jeans has a high share in the market they are leading marketer in blue jeans market. Levi’s specifically targets customers falling under Upper Class and Upper Middle Class. It emphasizes more on the age group of 13-24 (youngsters), although it has its product range for people with above 30 yrs. age. Its strategy is basically on having long-term relations with their customers by designing jeans, shape, color, and cloth so that fun mix and match clothes with accessories in style of fashion. They are up to date and they have high distributor channel. Points of Parity of Levis jeans with other are:

Accessibility Convenience Variety Quality Fitting jeans and

 Points of Difference are: Authentic Original Innovation and Premium price

TOP 5 JEAN BRANDS BY SALES TODAY. For men (estimated price range) For women  (estimated price range ) Levis                            ($49-$79) Levis                                   ($49-$79) Wrangler                     ($29-$49) Rider by lee                      ($22-$29) Levi Strauss signature  ($19-$25) Lee                                        ( $32-$38) Lee                                  (  $42-$49) Gloria Vanderbilt                  ($32-$38) South pole                       ($24-$29) Calvin Klein                           ($49-$89)

                       

Sources: NPD Group; Romney Evans/ TrueJeans.com

Market segmentation is a process of grouping customers in markets with some heterogeneity into smaller, more similar or homogeneous segments with similar requirements and buying characteristics. By carrying out market segmentation, companies are able to develop products and services that are appropriate for particular target segments and to be supported by an appropriate marketing mix.

Various advantages of market segmentation are: Helps distinguish one customer group from another within a given market. Facilitates proper choice of target market. Facilitates effective tapping of the market. Helps divide the markets and conquer them. Makes the marketing effort more efficient and economic.

In the market there are so many jeans company, they are producing high quality jeans and when there is so many competitor in the market. Price plays an important role. The successful and branded company like Levis are suffered from those problem so they decide to target market segment. They kept there price as it and improve quality and target for high class and middle class customer. Then Levis able to regain its market and its known as high class jeans. Many company make their segment on market for targeting specific customer. They develop new product and target specific .They make their market segment to survive and to retain market share.

 The demographic changes affect the market. Demographic trends relate to changes in a population’s age, gender, geographical location, marital status, educational attainment, employment status, household income, race, religion, and health. The marketer has to target the specific market segment according to average population’s employment status, income, or wealth, this all factor plays an important role to make marketing stagey. Staying up to date on the latest demographic trends enables marketer to identify existing and emerging markets for their products and services. By evaluating customers’ and prospects’ demographic trends, business decision-makers can identify changing needs in the marketplace and adjust to them. So demographics can be used to improve marketing effectiveness by helping businesses target new customer segments with the right messages at the right time. The baby boomers and Gen X and Gen y can be categorized as date of birth as Baby Boomers (born from 1946 to 1964) Gen X/Baby Bust (II) (born from 1964 to 1976) Gen Y Boomers (born from 1976 to 1994) Great brands and businesses are built through a combination of two things: continuously providing superior products and services and earning the trust of consumers, employees, and the communities in which they operate. In 1873, Levi Strauss and tailor Jacob Davis received a U.S. patent to make the first riveted men's work pants out of denim: the first blue jeans. Levi’s. Company is promoting its products effectively within segments by print media as well as electronic media, Levis specifically targets the customer which are falling under the upper class and super middle class. It emphasis the product range for people with above 30 yrs. age. Its strategy is basically on having long-term relations with their customers by designing jeans, shape, color, and cloth so that fun mix and match clothes with accessories in style of fashion In 1930’s Jeans were positioned as being worn by “cowboys”. Consumer demand shifts from durability of jeans to fashion of jeans. – Culturally, jeans became symbol of youth and rebellion. Denizen brand as jeans for new generation .the Levis makes impact on the market. Now a days Levis produce the signature jeans that insure the quality. Levis advertise in the Facebook and take consumer feedback.

In the market there is rising new company with new style jeans and with quality product. They are distributing with high number of seller, and they are selling in low price to occupy the market first. In this case the consumer of Levis may attract to those jeans and may Levis will lose their customer and market share. Levis has to update their product according to current fashion and style, they have to maintain brand personality in the market such that people will feel it is up to date and more ever they have to learn the consumer behavior. They have to update their technology and must understand the weakness and strength of the competitor. They have to improve distributing channel. They have to target market segment and they have to develop jeans wear for all. Line product should be increase.

Conclusion

Jeans are very much familiar with everyone. They are durable, comfortable and easy to wear. They also last longer than conventional trousers. Jeans mean different things to different people. According to the researcher Consumers in the United States buy approximately 450 million pairs of jeans every year. . On average, U.S. consumers have seven pairs of jeans, according to Cotton In corporate. Jeans are range as Skinny, Slim, Taper, Boot Cut, Relaxed and Big and Tall etc. Some of the famous jeans brand are Levis, Eagle, Wrangler, Diesel, Levis Strauss Signature etc. Among all Levi Strauss & Co. (LS & CO.) is one of the world’s largest brand-name apparel marketers with sales in more than 110 countries. Market segmentation plays an important role to distribute the product. The marketer has to target the specific market segment according to average population’s employment status, income, or wealth, this all factor plays an important role to make marketing stagey. Staying up to date on the latest demographic trends enables marketer to identify existing and emerging markets for their products and services Levis has got customer oriented approach by segmentation. Company is promoting its products effectively within segments by print media as well as electronic media, Company is providing their customers with stylish better quality and different product keeping in view its cost. To obtain market share, jeans company should be updated and have to follow the fashion trend in order to produce the suitable jeans for particular demographic area.

References

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