Gaurav PDF
Gaurav PDF
Gaurav PDF
Project Report
On
At
SUBMITTED TO
SUBMITTED BY
GAURAV SURYAVANSHI
MBA (Marketing)
RESEARCH, PUNE
2014-2016
Sinhgad Institute of Business Administration and Research,
This is to certify that the Project Report titled “COMPARATIVE ANALYSIS OF STUDY
ON CUSTOMER BUYING PREFERENCE & SATISFACTION TOWARDS LEVI’S
STRAUSS” which is being submitted herewith for the award of Master of business
Administration, Pune is the result of the original research work completed by
GauravSuryavanshiunder my supervision and guidance and to the best of my knowledge and
belief the work embodied in this Project Report has not formed earlier the basis for the award
of any degree or similar title of this or any other University or examining body.
Place: Pune.
Date: / /2015
DECLARATION
Date: / /2015
ACKNOWLEDGEMENT
This project can never be prepared by the singular efforts but I also demand
the help and guardians of some conversant person who under pin actively or passively
in the completion of a successful project.
Our sincere thanks to Prof. Sachin Deshmukh under whose able guidance
and kind cooperation we are able to complete the project work titled “Comparative
analysis of study on customer buying preference & satisfaction towards Levi’s
Strauss’’. We sincerely thanks help provided by Sinhgad Institute of Business and
Management Research, Kondhwa(Bk) which provided us the necessary material for
GauravSuryavanshi
MBA (Marketing)
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Table of Content
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List of Table
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List of graphs
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Executive Summary
The project was done to obtain the current level of satisfaction of Levis jeans
users. So also, what are their preferences in buying jeans? Both coupled yielded
reasons for current level of satisfaction and means to increase it. There was
insufficient secondary data due to which primary data was collected.
With a sample size of 200 respondents, the data collected was analyzed with
the help of Statistical tools like frequency charts like bar and pie were used to analyze
the data. The findings analyzed and based on the analysis conclusions were drawn and
requisite recommendations were provided. These included: 1) concentrating more on
advertising 2) Increasing availability through local outlets3) Reaching the economy
segment etc.
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Introduction
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Objective
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Company Profile
Levi Strauss & Co. is a worldwide corporation organized into three geographic
divisions: Levi Strauss Americas (LSA), based in the San Francisco headquarters;
Levi Strauss Europe, Middle East and Africa (LSEMA), based in Brussels; and Asia
Pacific Division (APD), based in Singapore. The company employs a staff of
approximately 10,500 people worldwide. The core Levi's was founded in 1873 in San
Francisco, specializing in riveted denim jeans and different lines of casual and street
fashion.
From the early 1960s through the mid-1970s, Levi Strauss experienced
explosive growth in its business as the more casual look of the 1960s and 1970s
ushered in the "blue jeans craze" and served as a catalyst for the brand. Levi's, under
the leadership of Walter Haas Jr., Peter Haas, Ed Combs, and Mel Bacharach,
expanded the firm's clothing line by adding new fashions and models, including
stone-washed jeans through the acquisition of Great Western Garment Co.(GWG), a
Canadian clothing manufacturer, and introducing Permanent Press trousers under the
Starkest name. The company experienced rapid expansion of its manufacturing
capacity from fewer than 16 plants to more than 63 plants in the United States from
1964 to 1974 and 25 overseas. Levi's' factory expansion was accomplished without a
single unionized employee. The use of "pay for performance" manufacturing at the
sewing machine operator level up. As a result, Levi's' plants were perhaps the highest
performing, best organized and cleanest textile facilities of their time. Levi's even
piped in air conditioning for the comfort of Levi's workers into its press plants, which
were known in the industry to be notoriously hot.2004 saw a sharp decline of GWG in
the face of global outsourcing, so the company was closed and the Edmonton
manufacturing plant shut down. The Dockers brand, launched in 1986which is sold
largely through department store chains, helped the company grow through the mid-
1990s, as denim sales began to fade. Dockers were introduced into Europe in 1993.
Levi Strauss attempted to sell the Dockers division in 2004 to relieve part of the
company's $2 billion outstanding debt. Launched in 2003, Levi Strauss Signature
features Jeanswear and casualwear. During the launch of Levi's Curve ID jeans, Levi
launched a 5 week integrated marketing campaign.
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Brands
The products of Levi Strauss & Co are sold under three brands:
1. Levi's®
Since their invention in 1873, Levi's® jeans have become one of the most
successful and widely recognized brands in the history of the apparel industry
2. Dockers®
Dockers® brand, which pioneered the movement toward business casual, has
led the U.S.khaki category since the brand's 1986 launch, and is now available in
numerous countries.
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Values of Levi Strauss
Levi Strauss & Co. has four major core values. These are
1. Empathy
2. Originality
3. Integrity
Courage Levi Strauss & Co. says, “Their corporate values -- empathy, originality,
integrity and courage -- are the foundation of our company and corporate values --
empathy, originality, integrity and courage -- are the foundation of our company and
define who we are. They underlie how they compete in the marketplace and how they
behave. Define who they are. They underlie how they compete in the marketplace and
how they behave.
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Mission Statement
Aspiration statement
They want a company that make them proud of and committed to, where all
employees have an opportunity to contribute, learn, grow and advanced based on
merit, not politics or background. They want their people to feel respected, treated
fairly, listened to and involved. Above all, they want satisfaction from
accomplishments and friendships, balanced personal and professional lives, and to
have fun in our endeavors.
Vision statement
When LS & Co. describe the future of Levi they are talking about a building
on the foundation they have inherited: affirming best of their Company’s tradition,
closing gaps that may exist between principles and practices and updating some of
their values to reflect contemporary.
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Scanning the market environment
Like other successful companies, Levi’s also has realized that the marketing
environment presents a never-ending series of opportunities and threats. The major
responsibility for identifying significant changes in the macro environment falls to a
company’s marketers. More than any other group in the company, the marketing
managers of Levis are the trend trackers and opportunity seekers. Many opportunities
are found by identifying trends (directions or sequences of events that have some
momentum and durability) and mega trends (major social, economic, political and
technological changes that have long-lasting influence).Within the rapidly changing
global picture, the marketers of Levi’s are monitoring the following six major
“Environmental Forces”:
1. Demographic Environment
2. Economic Environment
3. Natural Environment
4. Technological Environment
5. Political-Legal Environment
6. Social-Cultural Environment
Segmentation
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Basis of market segmentation
Target Market
JEANS targets its market by evaluating the wants of customers. Mostly Levi’s
targets its market among the following classes:
1. Upper Class
2. Upper Middle Class
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Target Market Strategy
Benefits of Segmentation
Limitation of Segmentation
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Marketing mix
The marketing mix is the set of marketing tools the firm uses to pursue its
marketing objectives in the target market. Marketing-mix decisions must be made for
influencing the trade channels as well as the final consumers. McCarthy classified
these tools into four broad groups that he called the four Ps of marketing: product,
price, place and promotion. Note that the four Ps represent the seller’s view of the
marketing tools available for influencing buyers.
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Levi’s portfolio analysis
BCG Matrix
A strategy tool that guides resource allocation decisions on the basis of market
share and growth rate of SBU’s. Boston Consulting Group introduced the idea of
BCG matrix that an organization’s businesses could be evaluated and plotted using a
2*2 matrix to identify which ones offered high potential and which ones were a drain
on organizational resources.
Horizontal Axis
The horizontal axis represents market share which is evaluated as low or high.
Vertical Axis:
The vertical axis indicates anticipated market growth which is also evaluated as low
or high
Categories
Based on its evaluation, the LS & CO.’s businesses are placed in the following:
“Stars include the businesses which are in a fast growing market and hold a dominant
share of that market.” Dockers® come under the head of stars as it is the major source
of income for thecompany.
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Cash cows (Low Growth, High Market Share)
Businesses in this category generate large amounts of cash, but their prospects for
future growth are limited.” The women apparels has got a low growth and high
market share so it comes under the Cash Cows head
These businesses are in an attractive industry but hold a small market share
percentage.
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Anoff’s Matrix
From the analysis, it is shown that in order to capture the sales objective LEVI’S
must choose the following growth strategies:
In order to extend the product life cycles of different product lines i.e. Russia, and
central Europe. In order to do that they have to identify the potential users and to seek
correct distribution channels in that location in accordance with other variables of the
marketing mix.
Such as development of big pockets for the CD players or the creation of new
engineered jeans.
McKinsey’s
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Major Competitors
They are much proud to say with surety that their products completely satisfy
their consumers.
That’s why they don’t face much competition in their business. But yet there
are some competitors:
1. Pepe Jeans
2. Leeds (US Apparels)
3. Gaap Jeans
4. Cambridge
Such a stuff, design and fashion which don’t have the enough sales are recall back
to the company. Again company issues this stuff to their own outlets for sale at
discount prices.
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SWOT Analysis
Strengths
i. Levi’s enjoys high brand equity. People all around the world recognize the
brand name.
ii. Levi’s products are unique and innovative in the style.
iii. A lot of variety is offered by Levi’s ranging from sunglasses to skirts and
shirts.
iv. The products are renowned and are considered as the most durable i.e. the
long lasting products.
v. Levi’s follows a high standard of quality
Weakness
Opportunities
i. Levi’s can do more well in the women section. This section is give less
importance as compared to the men section.
ii. The kid’s section, which has been started from few years, should also be given
proper attention to gain customers.
iii. Sales promotion can be increased by increasing the advertisements expenses
so as to enjoy a large number of customers.
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Threats
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4P’s of Levi’s Strauss
1. Price
It can be simply defined as: “The currency value charged to a Client by the
company for a product or service”. Is one of the most important elements of the
marketing mix, as it is the only mix, which generates a turnover for the organization?
The remaining 3p's are the variable cost for the organization. It costs to produce and
design a product; it costs to distribute a product and costs to promote it.
List Price:
Their all products are sold at listed price, which are settled by the Levis Company
(Singapore). There is no discount to offer
Credit Sales:
They also deal with credit sales, but we don’t overcharges to the customers, we pay it
our self to the bank (3 %). Products are only sold for cash or on credit cards
Discount:
They don’t give the discount to our customers even to the employees of the Levis.
Their prices are fixed.
Payment Period & Credit Terms are settled by the company’s price determination.
During the determination of the price company not considered the competitors, but
the standard that is used is considered.
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2. Product
3. Place
4. Promotion
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Mode of sourcing
Supply chain
FIBRE-More than 95% of all Levi’s® products are made with cotton grown in the
U.S., China,
India, Pakistan, Turkey or one of the many other countries where cotton is farmed.
FABRIC-Once the cotton leaves the fields, it is spun and made into fabric by mills
around the world.
LEVIS generally do not purchase fabric directly from the mills, but takes
important steps toward partnering with them in their drive toward sustainability.
. Product suppliers
Distribution
Once the garments are ready for ship ment , LEVIS distributes them through their
own logistics department
The INDC is generally the head office at US.
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Suppliers from India
GO International – Tirupur
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Trademarks
Levis has more than 5,000 trademark registrations and pending applications in
approximately180 countries The Levi’s, Dockers, the Arcuate Stitching Design, the
Tab Device, the Two Horse» Design and the Wings and Anchor being the core of all.
.
Eco-Friendly
Levi’s® brand launches 100% organic cotton jeans. Red Tab and, the recently
launched, Levis Capital E lines. The jeans will be identified as Levis.
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Problem Statement
1. Are Levis jeans users satisfied with what the company is offering?
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Research Methodology
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Research design
Research Design specifies the methods and procedures for conducting a particular
study. A Research Design is the arrangement of conditions for collection and analysis
of the data in a manner that aims to combine relevance to the research purpose with
economy in procedure. Research Design is broadly classified into three types as
On the basis of the objective of study, the studies which are concerned with
describing the character tics of a particular individual, or of a group of individual
under study comes under Descriptive Research Design.
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Formulating the research problem
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Sampling design
A Sample Design is a definite plan for obtaining a sample from a given population. It
refers t the technique r the procedure adopted in selecting items for the sample. The
main constitution of the sampling design is as below-
i) Sampling Unit
ii) Sample Size
iii) Sampling Procedure
i) Sampling unit
A sampling framework i.e. developed for the target population that will be sampled
i.e. who is to be surveyed.
Retailers, Customers, Working people, school students, unemployed and housewives
i.e. males and females irrespective of their education level.
It is the substantial portion of the target population that is sampled to achieve reliable
results (200 respondents)
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Non-Probability Sampling
The sampling used for this study was probability sampling. Since the study is
only meant for certain specific categories within the total population, a stratified
random sample was used. Three groups of categories have been taken into account
viz. students professionals and general public. Random Sampling (fill up the
questionnaire)
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Data collection
Primary data
The primary data are those data, which are collected afresh and for the first time. And
happen to be original in character. The primary data to be collected for the study are-
Secondary data
Secondary data was obtained from journals, magazines newspapers, books and the
internet.
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Research Instrument
For doing the survey research, structured questionnaire with both open ended
and close ended questions were used.
Place of study:
The study and survey is done in pune region only.
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Tools and Techniques
Simple statistical tools and techniques like average, frequency, ratios, tables
and graphs, chi square tests, correlation were used.
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Data Analysis
3 Occupation Service 42
Business 35
Self-employed 44
Student 57
Homemaker 18
Retired 4
4 Education Up to 10+2 29
Graduate/Diploma 104
post Graduate 67
Annual Family
5 Income 200000-400000 43
400001-800000 62
800001-1000000 75
Above 1000000 20
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Tommy Hill figure 27
Others 0
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Analysis of customer Gender
Fig 1.1
Chart Title
In the above chart we found out of 200 respondent 72% are male and 28% are
female who use branded jeans. We can interpret that males are more brand conscious
as compare to females.
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Analysis of customer Age group
Fig 1.2
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Diagram Analysis of Customer Occupation.
Fig 1.3
In the above graph we have found that out of 200 respondent, 42 respondent
are service person,35 respondent are Businessman, 44 respondent have a self-
employed, 57 respondent have a student , 18 respondent have a homemaker and 4
respondents have a retired.
So, here we can analysis that most of the customers have student
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Customer Income Group
Fig 1.4
In the above graph we found out of 200 respondent, 43 whose average annual
family income is 200000-400000, 62 person whose annual family income 400001-
800000, and 75 respondents are in 800001-1000000, 20 person are in above 1000000.
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Diagram of Customer Preference
Fig 1.5
From your survey we found that out of 200 Respondents 86 Respondents has
chosen Levi’s brand, 44 Respondents are goes for Numero Uno brand, 43
Respondents prefer the Woodland brand, only 27 Respondents has chosen the Tommy
Hill figure brand.
So here we can analysis that most of the customer prefer Levi’s brand for its
brand value, style & price.
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Diagram which analysis customer satisfaction
Fig 1.6
Here in the diagram we try to compare Levi’s brand with Levi’s top three
competitors. We try to find out here the customer satisfaction level of the different
brand user. We found that molar less Woodland and Numero Uno brand use are quite
satisfied but above on this the Levi’s brand user most satisfied.
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Hypotheses Testing
List of hypotheses
H4: Price of jeans has a significant impact on customer choice brand of jeans.
H5: Price of jeans has a impact on customer perception about the quality of brand of
jeans they are using.
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H1: Age has a significant impact on customer choice of brand
Table 1.1
Std.
N Mean Deviation Std. Error Lower Bound Upper Bound
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Table 1.2
Between
Groups 4.964 3 1.655 .936 .424
Result: The alternate hypothesis has been rejected at p<0.05 it means that age
has nosignificant impact on choosing brand of jeans by customers.
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H2: Occupation of a customer has a significant impact on customer
choice ofjeans brand.
Table 1.3
Std.
N Mean Deviation Std. Error
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Table 1.4
Minimu Maximu
Lower Bound Upper Bound m m
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Table 1.5
Sum of
Squares Df Mean Square F Sig.
Between
Groups 5.763 5 1.153 .647 .664
Result: The alternate hypothesis has been rejected at p<0.05 it means that occupation
of a customer has no significant impact on choosing brand of jeans by customers.
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H3: Income of a customer has a significant impact on customer
choice of brand of jeans
Table 1.6
Std.
N Mean Deviation Std. Error
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Table 1.7
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Table 1.8
Sum of
Squares Df Mean Square F Sig.
Between
Groups 286.448 3 95.483 287.685 .000
Result: The alternate hypothesis has been accepted at p<0.01 it means that income of
a customer has significant impact on choosing brand of jeans by customers.
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H4: Price of jeans has a significant impact on customer choice brand
of jeans.
Table 1.9
Std.
N Mean Deviation Std. Error
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Table 1.10
Lower
Bound Upper Bound Minimum Maximum
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Table 1.11
Sum of
Squares Df Mean Square F Sig.
Between
Groups 178.329 3 59.443 263.203 .000
Result: The alternate hypothesis has been accepted at p<0.01 it means that price of a
jeans has significant impact on choosing brand of jeans by customers.
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Correlation between annual family income and brand preferences of
respondent
Table 1.12
N 200 200
N 200 200
Result: there is a strong correlation between annual family income and brand
preferences of respondent. Correlation is significant at the 0.01 level.
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H5: Price of jeans has an impact on customer perception about the
quality of brand of jeans they are using.
Table 1.13
N Mean Std. Deviation Std. Error Lower Bound Upper Bound Minimum Maximum
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Table 1.14
Sum of
Squares Df Mean Square F Sig.
Result: The alternate hypothesis has been accepted at p<0.01 it means that price of a
jeans has significant impact on quality perception about brand of jeans by customers
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Findings
1. Age has no significant impact on choosing brand of jeans by customers.
5. Price of jeans has significant impact on quality perception about brand of jeans by
customers.
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Limitation
1. The area of research has been limited to Delhi NCR area due to financial and time.
2. The number of respondent has been limited to 200 only due to time foundation.
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Conclusion
Through the research we can say that there is a impact of price income of a
jeans brand on the customer choice of brand. Also there is a strong correlation
between price of the jeans and customer satisfaction with the brand of jeans.
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Recommendations
From the above findings and analysis, following recommendations could be drawn:
Levis should more aggressively tap the youth segment, which lies in the age group
between 18-25. The reason for the same is Levis was ranked first in terms of the
overall brand image. Hence, Levis has a scope to reach the top position and encase
through increase in sales.
Since most of customers buy twice a year (i.e. every 6months) or occasionally,
and they are not affected by the promotions, Levis should aggressively advertise
coupled with effective sales promotions for improving customer recall and Brand.
It was also found from the survey that color range is low. This also limits
preference towards Levis as a brand. This area should be properly looked after by
making available hosts of colors.
After sales service which is becoming the most critical success factor seems to be
not given due importance. .Proper after sales service can provide a competitive
edge through efficient customer relationship management
Since Levis jeans is majorly available in departmental stores and factory outlets,
reaching the customer and availing him with consumer schemes is difficult. India
having a large middle class customer group still being not exploited can be
reached through making Levis jeans available at local retail outlets.
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Annexure A
Questionnaire
Please answer all the questions for a fair result and evaluation. All the information
providedby you will be used for academic purpose and kept confidential.
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Bibliography
1. www.google.com
2. http://en.wikipedia.org/wiki/Levi_Strauss.
3. http://www.levi.co.in/
4. Magazine
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