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  1. 1. Business studies projectMarketing management (JEANS) Delhi public school!
  2. 2. AcknowledgementI would like to thank my thank my business studies teacher Mrs. Sopilla Nile for helping me out withmy selection for the project. She also helped me with ideas and concepts for the project. My parents who encouraged me and helpedfinding the details and providing me with contacts and helping me with the field reports. My friend, ishwari who gave me ideas for my product and would discuss and solve my problem anytime.
  3. 3. IntroductionJeans are trousers made from denim or dungaree cloth.Often the term "jeans" refers to a particular style of trouserscalled "blue jeans" and invented by Jacob Davis and LeviStrauss in 1873. Starting in the 1950s, jeans, originallydesigned 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. ANevada tailor, Jacob Davis, had the idea ofusing copper bolt sat the corner of the pockets to makethem stronger. They became popular instantly and soonmany people bought them.Although Davis knew that he had a great product whichmany people wanted to buy, he didn’t have the moneyto patent it. He asked Levi Strauss, who supplied himwith cloth, to help him out. The two worked together andstarted making jeans out of denim, which was morecomfortable and could be easily stretched. It also becamesofter as it got older. They were dyed with indigo becauseit did not go through the cloth like other dyes do.
  4. 4. Initially, jeans were simply sturdy trousers worn by factoryworkers. During this period, mens jeans had the zipperdown the front, whereas womens jeans had the zipperdown the right sideAfter James Dean popularized them in the movie Rebelwithout a Cause, wearing jeans became a symbol of youthrebellion during the 1950s. Because of this, they weresometimes banned in theaters, restaurants andschools. During the 1960s the wearing of jeans becamemore acceptable, and by the 1970s it had become generalfashion in the United States for casual wear.In 1885, jeans could be bought in the US for $1.50 .Today,a pair of durable jeans can be purchased in the UnitedStates for about $40.Denim refers to the fabric and Jeans refers to pants madeout of denim. So actually, Denim can mean either pants,skirts, jackets. Jeans mean specifically denim pants.
  5. 5. 1. Levi StraussLevi Strauss & Co. also known as LS&CO or simply Levi’s is a privatelyheld American clothing company known worldwide forits Levis brand of denim jeans. It was founded in 1873 when LeviStrauss came from Buttenheim, Bavaria, to San Francisco,California to open a west coast branch of his brothers New York drygoods business. In 1873 Levi Strauss and tailor Jacob Davis receiveda U.S. patent to make the first riveted mens work pants out of denim:the first blue jeans.The price range:-Denizen- 1099 to rs. 2999Sykes- rs. 3000 to rs. 9000
  6. 6. Parent Company Levi’s Strauss and Co.Category Apparel and AccessoriesSector Lifestyle and Retail Go Forth; Levis. Original jeans. Original people; A style for everyTagline/ Slogan story; Quality never goes out of styleUSP Oldest Jeans Brand yet modern. ( curve ID, waste<less)Segment Upper class and Upper Middle ClassTarget Group People who want a blend of style and ComfortPositioning Outgoing and stylish quality jeans 1.Strong Brand Name and popular top-of-the-mind brand 2. Expertise in Jeans Industry 3. Distribution Channels and Global Outsourcing 4. Has over 470 self operated stored globally managed by 16000+ employees 5.Levi’s marketing includes retro popular songs in its TVC ad campaigns 6.Over 60 and 25 manufacturing plants in US and abroadStrength respectively 1.High Pressures of Brand ProtectionWeakness 2. Increasing competition means limited scope for growth
  7. 7. 2. Pepe jeansPepe Jeans London is a denim and casual wear jeans brand thatwas established in the Portobello Road area of London in 1973.From its origins as a tiny market stall to more than half a US billiondollar brand, Pepe has transformed itself into a Jeanswear labelfound throughout Europe.In 1973 it was originally just a weekend road side stall onthe Portobello Road Market located in west London established bythree brothers: Nitin Shah, Arun Shah and Milan Shah. Nitin andhis two brothers later started their own company Sholemay Ltdtrading, as Pepe Jeans. The brand was named "Pepe", because it wasa short word that could be written without much trouble.Pepe Jeans was launched in India in 1989. The brand is currently aleading player in the premium jeans and casual wear segment,enjoying a market share of more than 25 percent.The price range: starts from rs 999 to rs 3299.
  8. 8. Parent Company Pepe Jeans IncorporationCategory Apparel and accessoriesSector Lifestyle and RetailTagline/ Slogan Pepe Jeans London A brand, which is really innovative, stylish changing with variety at an affordable price. (animal prints , adults and children section, seasonUSP looks) Men and women who like contemporary style of fashion with aSegment rebellious attitude.Target Group Young urban Men and women from the upper middle class Pepe Jeans is a premium and international brand, which houses casualPositioning wear with a heart of London in it. 1. Pepe Jeans is present over 100 countries and employs more than 5000 employees all over the world. 2. 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 was a big hit. 3. The brand has entered the elite segment of the top four denim producers in the world. 4. The brand has signed international celebrity brand ambassadorsStrength which enhances the brand equity. 1. Constantly changing fashion trends means inventory issuesWeakness 2. The brand has several competitors hence high brand switching
  9. 9. 3. LeeLee is an American brand of denim jeans, first produced in 1889in Salina, Kansas. The company is owned by VF Corporation, thelargest apparel company in the world. Its headquarters is currentlyin Merriam, Kansas, just outside of Kansas City, Missouri. Thecompany states that they are an international retailer andmanufacturer of casual wear and work wear and that they havemore than 400 employees in the United States. In Australasia, thebrand is owned by Pacific Brands since 2007. The company wasformed in 1889 by Henry David Lee as the Lee Mercantile Companyat Salina, Kansas producing dungarees and jackets.Price starts from: rs 1999 to rs. 2899
  10. 10. Parent Company VF CorporationCategory Apparel and accessoriesSector Lifestyle and RetailTagline/ Slogan A Lee is you; A Lee Dont Lie; Own the moment A company which has rich heritage, Innovative designs and socially responsible organization.( fit finder, vibrant colors offered , for roughUSP use, clearance offers) Men and Women who want to wear stylish and innovative jeans at anSegment affordable price.Target Group Young urban men and women from the upper middle class A stylish brand with a sporty look with an American imaginery to thePositioning brand. 1. The brand has over 100 stores all over the world and employs over 500 people in the USA. 2. The brand has been known as one of the top jeans producers all over the world. 3. The brand is known for its innovation through out the century and known for inventing the zipper fly jeans. 4. Lee was one of the first jeans brand to start advertising throughStrength television and has continued extensive advertising throughout. 1.The brand has not established itself in the e-commerce arena that well in Asia where the brand has a significant market share. 2.The brand has had problems in distribution of the updated stocks inWeakness parts of Asia and Europe.
  11. 11. 4. WranglerWrangler is an American manufacturer of jeans and other clothingitems. The brand is owned by the VF Corporation, who also ownLee, Jan Sport, and The North Face, among others. Its headquartersis in downtown Greensboro, North Carolina in the United States,with production plants in a variety of locations throughout theworld. Wrangler Jeans were first made by Blue Bell, who acquiredthe brand when they took over Casey Jones in the mid-1940s. BlueBell employed Bernard Lichtenstein (Rodeo Ben), a Polish tailorfrom Łódź who worked closely with cowboys, to help design jeanssuitable for rodeo usePrice from: rs. 1695 to rs. 3295
  12. 12. Parent Company VF CorporationCategory Apparel and AccessoriesSector Lifestyle and RetailTagline/ Slogan No matter where the destination, where your heart out Comfort and style at affordable rates. (jeans and jackets , dominatedUSP by men section clothes, cowboy, rock cult cut)Segment Casual wearTarget Group Men and women from the urban upper middle classPositioning Tough and rugged, lasting quality 1. Wrangler has a wide distribution channel. They sell their jeans at mass merchandisers such as Walmart and Target. 2. They also have their own flagship specialty stores located at many places 3. Strong brand presenceStrength 4. Good marketing and advertising at stores and print ads 1.Competition from standalone specialty stores means limited market share growthWeakness 2. Lot of options available means high brand switching
  13. 13. 5. DieselDiesel S.p.A. is an Italian design company. It is best known forluxury, prêt-a-porter clothing aimed at the young adult market.The company is owned by its founder Renzo Rosso, and is based inthe former Laverda building area in Breganze, northern Italy. Thecompany was founded by Renzo Rosso in 1978. Diesels milestoneyears include 1985, 1988 the hiring straight out of fashion college ofex-head designer and Creative DirectorWilbert Das, 1991(beginning of the international marketing strategy) and 1996(opening of Diesels first flagship store on New York Citys LexingtonAvenue)Price starting from: rs 899 to rs. 2999
  14. 14. Parent Company Diesel S.p.A.Category Apparel and AccessoriesSector Lifestyle and RetailTagline/ Slogan For Successful LivingUSP Complete lifestyle brand. (diesel black gold,55dsl)Segment Young men , women and children who are very fashion consciousTarget Group Urban upper-middle and upper classPositioning A complete fashionable lifestyle brand 1.A complete lifestyle brand known for its luxury and pret-a-porter clothing aimed at young adult market 2. The exclusiveness strategy which saw them intentionally shrink from 10000 points of sale 5000 points of sale 3. Strong advertising strategy which sees them building stories around pictures. 4.The diversification into other merchandise like sunglasses ,watches, perfumes, footwear makes it a complete lifestyle brandStrength 5. Has over 2500 employees serving in 80 countries 1.Their main product Diesel jeans is expensive and only available to a select few 2.Majority of sales revenues come from designer jeans. A slight dip in the demand of it may see a major drop in salesWeakness 3.Replica products and fake imitation affects brand image
  15. 15. Why have I selected this product?Jeans is for everyone, young and old. If you have an innate eye forfashion, a jeans company is one business you can start.Knowing what types of jeans sell best. Survey, checking magazines to knowwhat fashion icons and celebrities wear, attending fashion shows to formnetwork within the industry, and reading fashion reviews for updates) arethe knack . Customers usually look for style first then narrow it down to thecolor of their choice and the size that fits them.Jeans is a huge trend in nowadays as it is very comfortable, durable andpreferred by many people not considering the age bar.The production and manufacturing of jeans is also very easy as noparticular license or permission is to be obtained for producing the jeans.(For setting up a factory or shop licenses and permission are mandatory inall the sectors). Obviously at the end there is a quality check which isagain mandatory in all goods after their production.Thus manufacturing of jeans is preferred as not many legal restrictionsare imposed and has a mass and growing demand for them. Nature of the productProduct is an element of marketing mix representing the tangible andintangible elements offered to the customer in order to satisfy his need.Product is the most visible component of the marketing mix.Customers do not buy a product but rather they buy what the product doesfor them ( core, expected and augmented benefits)Jeans is a tangible good with associated attributes. Jeans is a consumergood i.e it is used by the consumers directly.It is classified as a shopping product which means it is purchased after acomparative analysis of quality , price , warranty etc. of competitivebrands .
  16. 16. The manufacturing processA. Jeans’s manufacturer--sewing factoryFirst, sewing factory must select the right denim fabric, make manypair of trousers leg, then send them to the washing factory to checkthe shrinkage rate.Second, to design or prepare the urgently needed accessories such astrade mark, washing mark, size mark, printing, embroidery, etc. theless urgent ones can be done next time.B. Jeans’s manufacturer--Embroidery and printing factory.After the denim fabric was selected, crafts factory must start to makesample for embroidery and printing till approved, then immediatelystart production.C. Jeans’s manufacturer--Crafts factory.When the jeans are sewed, desizing first by washing plant, thencrafts factory will treat the jeans by monkey wash, sand blast, winkletreatment, etc. The crafts must be the same as customer’srequirements.D. Jean’s manufacturer--Washing factoryJeans washing is of critical importance for all the work, if this isdone successfully, the jeans are almost finished.E. Final treatmentA through quality check must be performed after the final treatmentis finished, final treatment are leather label stitching, ironing, rivetpunching, logo hanging, excessive thread cutting, packing, treatment are done by the sewing factory or washing factory.
  17. 17. Different varieties of jeans manufactured by our company Right hand twill - Using uniform yarns, this weave is considered more rugged. Left hand twill - The weave runs diagonally, resulting in a softer, loftier feel. Ring Spun Denim - The original denim fabric, which is known for its characteristic slubs. Open-End Denim - The most popular type of denim that results in a consistent yarn thickness. Dirty denim - Filler yarns are brown (instead of natural which is woven with the indigo) which gives the denim a "dirty" appearance Stonewashed - Most jeans today are stonewashed, but not in pumice stones like the original method. Now enzymes, sand, ceramic balls and other methods give jeans their worn look. Flares - Slim through the legs, flaring right above the ankle -- to about an 21+ inch opening. Bellbottoms - Start to flare at the knee, resulting in a 22+ inch leg opening. Peg legs - Extremely narrow leg opening (very 80s) Boot cut - Slim through the legs, with a slight flare at the ankle to accommodate a boot (about a 16-18 inch opening)The product starts from the range of rs. 400 for the customers andgoes till rs. 1500 depending upon the cut, variety and wash of thedenim.
  18. 18. BrandingBranding is a process of assigning a distinctive name or a symbol toa product by which it is to be known and remembered.The company’s brand has been named as INBORN..!! as our companyis targeting the masses of all income levels and wants our jeans tonot just be used by the urban crowd but also the rural crowd andpeople with comparatively less income as India is a population with70% people situated in the rural area. With the production being inlarge scale the cost will also (economically) come down.
  19. 19. As the company has just started the production takes place in smallscale.The brand name has been registered and so is the tagline and logo..So for trademarks and branding of the jeans the above logo is used.The reason behind the logo is that, blue is a universal color andvery passive. Even people with color blindness can identify it and thered implies that it runs in your genes, your blood.The tagline jeans in your genes imply that every person can affordand wear the jeans manufactured by our company. We would like tomake our jeans a part yourselves just as your genes.Our motive is to make our companies jeans popular to the masses atan affordable rate with the best quality possible.
  20. 20. Product Usage:Very frequent use of the jeans on almost all of the major occasionsincluding festivals, Parties, and other important Festivals andEvents.Heavily used by the school and college students.Purchase Influence:Purchasing decision making is based on individual preferenceswhich can lead to the same product among other individuals aswell. For instance if a youngster purchase a particular brand ofjeans he/she can influence his or her friends or relatives to purchasethe same product. Word of mouth is also an effective means ofpromoting sales of any product.Life Style of the Users:Life style does matter a lot on the purchase of a product. Forexample if a student prefers jeans in his life style then his obviouslyhis consumption for jeans is certainly more than a person who wearsjeans occasionally. Similarly the social class level also matters in thepurchases.The upper class usually go for the quality, fashion andstatus while the lowers are more conscious to price.Market Attractiveness Factors:Differentiated cuts and styles of inborn!! Jeans allow us to provide ahandsome look to our customers.The company can make exclusive designs of inborn!! Jeans forshowbiz and fashion industry and by doing advertising of inborn!!Jeans through actors.
  21. 21. Price of the productThe term “price” denotes the money value of a product or service. Itis the amount of money the seller is asking for the product he offerfor sale or the amount which buyers are to pay for it.Price is an important element in the marketing mix of a firm andaffects other components of the marketing mix.The price of the item is different for the wholesalers and customers.Customers commonly buy jeans in number of units but thewholesalers buy in bulks. A bulk of jeans contains ten pieces of jeans.The prices for wholesalers and customers are shown in the followingtable for our main products for this segment.Product customer retailerBell bottom 400 360Boot cut 650 575Flare cut 800 700Straight cut 900 1000Baggy jeans 1000 950Our company has comparatively very low places as we first want toestablish ourselves in the market by providing our material to a lotof people who can connect with them.The cost of production of basic simple jeans in rs. 300. We sell it to theretailers at a bit of higher amount obviously in order to incur thecosts and the retailers sell it to the customers.
  22. 22. The prices charged by the competitors are really high and hence ourprices would influence the buyers and the consumers to buy ourproduct.It is basically targeted for all the income groups, so the price is lesswith an incredible quality and for daily use.There is not much risk involved either as jeans is always in trendand the fashion of jeans never fades out.
  23. 23. Distribution of the productPlace element of marketing mix refers to distribution of products tomake them available to customers for purchase and consumption.Distribution is very important as if the products are not distributedand are not made available to the customers at the right place,time and quantity they would not buy they products.Warehousing: goods are produced in factories on a continuousbasis and these are not sold immediately after production.Location of warehouses for storage of goods depends on the natureof the product. Since jeans are a necessity widest possible distributionis desirable.Channel of distribution: a channel of distribution is theroute or path along which products flow from one point ofproduction to the point of ultimate consumption or use. It startsfrom producer and ends with the consumer.
  24. 24. Our company has chosen the one level channel where themanufacturer sells the product to the consumer directly.This channel has been selected because it was it is the mosteconomical of all for a new entry to the market.This channel does not require the producer to directly search for thecustomers at the same time avoids overpricing as we are a newcompany and want to establish ourseleves. Using the two level orthree level would be expensive for a new company as longer thechain more would be the price of the product to the customers.
  25. 25. Promotion of the productPromotion is the process of communication with thepotential buyers involving information, persuasion andinfluence. It includes all types of personal and impersonalcommunication with customers.Radio AdvertisingA catchy jingle and quick tag line can enhance a radio adseffectiveness. Matching the station you choose with your targetdemographic is key. If you want to reach adults aged 35 to 64, anadult contemporary station is a good bet. An alternative or urbanstation is good to reach youth aged 18 to 24.Door Hangers and FlyersCanvassing the neighborhood, placing flyers in mailboxes orhanging ads on doorknobs, is a good way to target a specific areaand to make sure your potential customers have seen yourinformation. Even if most homeowners will discard the information,gaining a handful of clients may be enough for a positive return onthe marketing campaign investment.The Print and Graphic Arts MediaMany retailers prefer advertising in local newspaper because itprovides maximum flexibility in terms of budget, timing, couponfeedback, product and price mix. The perception rate is high becausethe reader can get more than one impact from the same message.