2. BACKGROUND
Since 1849, the world had changed through a remarkable invention: jeans, in the California Gold
Rush. This had created a powerful social, economic, political trend in that time and we must take
this account to Levis Strauss, the father of jeans. Levi Strauss decided to establish company in
1890 and its headquarters is located at Levi’s plaza in San Francisco. Thanks to his invention,
many modern famous companies have established to produce jeans. His support of homosexual
marriage through the companies campaign push a controversy respond from society and politic.
With the slogan “Qualities never goes out of style”, they make sure that the quality of each
products being made is the best. Although many other product line make its appearance
throughout the development of the company, the one and only trademark of Levi’s is jeans.
Levi’s not only focuses on casual, energetic and vintage style, but also every pair of Levi’s jeans
is made with the best fabric: cotton. Every age, from kids to old, from women to men, both are
the main customers of Levi’s.
In this project, we study Levi's position as well as suggest some plans to further development in
Vietnamese market.
3. SWOT ANALYSIS
Strength:
First, the quality of product is excellent. Those reviews below show that the jeans are not only
long-lasting but also colorfast. Before releasing new product, it must make through all those kind
of test for jeans such as: cloth shrinkage, chemical content, etc. in order to meet international
standard.
Second, Levi’s invested 8 million dollar in the Levi Strauss manufactory in Ninh Binh (Vietnam)
which can help Levis cuts down the cost. Levi’s has good reputation so it does not elicit the
concern for customers (their product is sold in 51 countries all over the world)
The last one, Levis has good customer service. It covers many fields such as: payment, shipping,
privacy and security, etc. and customers can email or make a direct phone call to complain or
settle their problems. Also, Levis has Levi’s curve ID which advise users what Levis jeans they
should buy.
Weakness:
From 1980s to 1990s, the problem arises as they lack of creative and cannot follow the trend yet
they just stick to the traditional style and design. The loss of market share is a predictable
outcome. Moreover, protecting their brand is another weight to put pressure on Levi’s shoulder
when more and more brand launched new impressive collection. As for Vietnamese market,
Levi’s are also known for a higher price than local brand (Levis: 1m VND to 2.5m VND vs
PT2000: 300,000VND-600,000VND).
Opportunities:
As more and more Vietnamese people use Internet and prefer to shop online, so that, Levi’s can
appear on more online channels like Zalora, YouTube, Facebook… and create more campaigns
to marketing their products. Moreover, their stores are located in the mall, supermarket, and
downtown which can satisfy the need of assertion for a new rising class.
Levis focus on casual style. This style is now popular in teenager, adult or even older. It helps its
product used widespread.
4. Threat:
Vietnam is a developing country so people cannot afford jeans of Levi’s as their price is too
high, compared with other brands coming from China, Hong Kong, Thailand, … even Vietnam.
Besides, they prefer to shop at market than outlet stores or departments because they can find
easily thousands of cheaper jeans, which are suitable for their income. In addition, it’s hard for
Levi’s to protect their copyright as the copycat from China or local factory is selling widespread
on the street.
5. BUYERS/ CUSTOMERS
Most of people love jeans of Levi’s (about 80%) and become a loyalty customer.
However, there are some negative feedbacks (around 20%) about their unfitted
size, unvaried colors, sensitive materials and changed style. The main idea is
represented by twenty sample feedbacks below:
12. ALTERNATIVE PLANS
Situation:
As Vietnam is a developing country, Vietnamese people cannot afford buy expensive
jeans like Levi’s. So that, to increase profits, Levi’s should create a product line for middle class,
especially for teenagers and adults.
But, if this strategy is not successful, what the reason why? There are some problems
causes that failure.
First, every time we mention about Levi's, we will think about their products with brand
identity and value. If Levi's produce this product line, customers who know about Levi's
will concern about its quality and all about their thinking will be a rumor or a fake
products from foreign countries.
Second, Levi's will facing the problem of losing loyal customer because they feel offend
for their image.
Finally, Vietnamese culture is another fence; people prefer to shop at the market than
outlets or stores.
Solution:
Hence, Levi's should have an alternative plan for the strategy’s fail. We suggest some
recommendations such as:
Invite hot teens or famous people to marketing the products through advertise or social
networks to create new trend.
In addition, Levi's may organize a festival day which concludes a fashion show to re-
introduce the products, test show, offline meeting with idols. About test show, they will
free tickets for everybody to come and test product's quality and educate people how to
keep the jeans long-lasting. Also, in the offline show, people can meet their idols who use
Levi’s jeans such as Chi Pu, Khoi My, Noo Phuoc Thinh, Dong Nhi... and join in
activities with idol.
The last thing is when people buy products; they will receive an accumulated point in the
customer card. If they have enough points, they will receive the idol's signature,
individual talk, take photos or have dinner with idols.
13. 4-P
PLACE:
There are nine cities in Vietnam in which we can find Levi’s stores: Ha Noi, Hue, Hai Phong, Da
Nang, Ho Chi Minh, Dong Nai, Binh Duong, Vung Tau, Nha Trang. Usually, its stores are
located in mall (Parkson, Cresent Mall, Dimond Plaza, Vincom), supermarket (Big C, Lotte
Mart), and downtown where the middle-class and high-class usually come to as Levis will have
more chance to sell their products.
PRODUCT:
Details:
On spring 2014, ComumterTMCollection officially present in Vietnam. This product line is
innovated about features of fabrics, more durable and elasticity, colors and the ability to adapt
the changes in weather and climate. This product is although launched with innovative modern
but still remains the breath of the classic Levi’s jeans. There are some features of this collection:
98% cotton, 2% elation
Urban, greater convenience, safety, mobility and protection
Water-resistance, dirt-repellent
Reflective 3MTM ScotchliteTM tap on interior cuffs
Slim fit sitting below the waist
Slim leg
Comparison:
Levi’s Tommy Zara Market
Price Very high
(1 m – 2.5 m)
Very high
(1m – 2.5 m)
Middle
(0.9m – 1.2 m)
Low
(<0.8m)
Quality Excellent** Excellent Good Unknown
Popularity Low*** Low Average High
**Long lasting
***Because of its prices is higher than local brands (Ninomaxx: 400,000 – 800,000 VND, PT
200: 300,000 – 600,000 VND)
14. Although the quality of Levi’s, Tommy Hilfiger and Zara are undoubted, the price is so high. It
is primarily sold in department stores, malls and outlets in downtown while Vietnamese’s
habitude of buying cloth is in the market. As a result, it threats the possibility for Levi’s and
other brand to increase their popularity.
In contrast, market’s product has an affordable price which eases the tense on consumer’s pocket
thought the quality is quite not guarantee.
Recommendation:
The following recommendation is based on the previous feedbacks
Firstly, Levis should fix the pocket’s design. It is small and shallow to put money and fit
the IPhone and other smartphones. Secondly, most of its jeans have a traditional color
such as blue, black and white.
Levi’s recognize this problem and solve this by adding more colors and changing its
fabric (blending elastic material to its custom cotton) yet the company receive the
controversy respond from the old parties and the trendy parties.
PRICE:
Levis should maintain their price because of these following reasons:
If they decreased their price, it would harm the reputation because customer will start
questioning their purchasing. It is possible to doubt that the new product will not have the
same quality as the origin or the company have financial problem. As the result, Levis
could lose their customer’s belief and affect their business side.
If they increased their price, new features need to be introduced in order customers to
stop complaining about the price. They could lose their competitive advantage since the
market has had plenty of brand selling jeans with the reasonable price as well. Moreover,
only the experts could tell the difference and its effect for a more comfortable wearing
while customers usually make judgment based on their experience, feeling of product and
word of mouth. In additional, Levis could lose customer since people could not afford a
higher price.
PROMOTION:
Levis has many promotion campaigns. The nearest promotion is 10 years anniversary which 40%
discount for t-shirt or buy 1 get 1 free and 30% discount for jeans from 23/05/2014 to
30/06/2014. They also have the year-end sale, semi-annual sale which have 20%-50% discount
for all products and based on each country’s holiday.
