LEVI'S Design Studio Marketing Strategy

Re s h m a M u r a l i t h a r a n 0 24 8 5 6

Executive summary …………………………………………………………………………………...……..

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Methodology of research applied

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Macroeconomic analysis: PESTLE analysis ……………………….………………..………………..

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Microeconomic analysis

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Brand overview Strategic Audit

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Industry trends

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Performance analysis

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Supply chain

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Customer perception

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Competitor analysis

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SWOT and strategic option ……………..…………………………………………………………………

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Marketing strategy Aims and Objectives ………………………………………………….………….……………………………

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STP Analysis ……………………………………………………….…………………………………………….

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Marketing Mix ………………………………………………………………..………………………..  Product ………………………………………………………..………………………………..  Price …………………………….……………………………………………………………  Place …………………………………………………………………………...…………….  Promotion ……………………………………………………………………………...………….  People ………………………………………………………………………….………………  Process/Physical evidence ………………………..………………………...…….

Evaluation …………………………………………………………………………………………….………

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Budget and timeline ……………………………………………………………………………...…………

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Appendix      

I: Survey ……………………………………………………………………………..………….

II: Employee interview ………………………………………...…………………………

III: Customer interview ……………………………………………………….…………..

IV: Focus group results …………………………………….……………………………..

V: Perceptual map ……………………………………………………….…………..

VI: Magazine audience ……………………………………………………………..…….

References

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TOTAL WORDS: 2,176 words

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This marketing plan will present in detail the development of a marketing strategy for a brand new concept store in London for the brand Levi’s, featuring a strategic audit, an indepth review of the 7 P’s of the marketing mix and a budget and timeline of the project.

Primary research has been collected in the form of an employee interview, a consumer interview, a consumer focus group and a quantitative survey. Secondary research has been collected from the online websites, reports and Levi’s annual report for 2017.

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Interview Online Survey

Focus group Employee interview

Brand DNA

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Brand’s marketing strategy

Customer interview

Secondary research

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Understanding consumer profile

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Understanding consumer behavior

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Understanding the market and market trends Competitor insight

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Limitations in research include: 

An interview with one employee at a single Levi’s branch (not representative of all Levi’s branches)

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Primary research was conducted with in a narrow age group consisting primarily of female respondents

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Founded in 1853, at the height of the American Gold Rush Era, Levi’s was the brainchild of Bavarian immigrant, Levi Strauss, who with tailor Jacob Davis, created the worlds first denim with the idea that the fabric would be strong and durable for gold workers to wear.

Soon the patented riveted jean gained favor in countries like Japan and Australia as early as 1908, and all spread globally to become the number one denim brand in the world.

However, in the 90’s to late 2000’s Levi’s lost favor with the public, being seen as outdated and out of trend until the appointment of current CEO Chip Berg—who overhauled the brand to make it a brand with staying power.

Levi’s has become synonymous the world over with as the icon of classic American denim, known for its supreme quality and long standing heritage, and recently, with its many efforts in social activism and sustainability, to present itself as a truly authentic brand that stood for the values it believes in.

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A strategic audit will be carried out on the macro and microenvironment to identify the key factors that affect Levi’s business strategy.

Levi’s macro environment will be analyzed in terms of the U.K market, and will be analyzed using the PESTLE analysis.

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Factors

Implication on company Brexit is expected to hit the retail sector the hardest, due to issues in employment of EU staff, as limitations in free movement will force several European workers to leave the UK (Fashion Roundtable, 2018). This could have a wide reaching impact on all of Levi’s staff, from office staff to sales assistants.

 Political

Brexit and uncertainty in the future of the United Kingdom  EU regulations (in place until 2019)

The fate of certain EU regulations may be at stake post-Brexit. Regulations such as VAT on gas and electricity, and banking regulations could affect Levi’s on a more corporate level.

The weakening GDP growth is due to falling household spending, lowered rate of business investment and turbulent weather inhibiting consumer spending (Partington, 2018). The affect of U.K’s GDP on Levi’s may come into play when it comes to workers and wages.

As of 2016, the fashion industry accounts for up to £26 billion in the U.K’s GDP.

 Economical

(As of May, 2018) Lowest U.K GDP growth in 5 years  As of April, 2018, inflation rate is 2.3%

Lower inflation brings down the cost of importing Levi’s jeans into the UK, thus lowering the overall price of the product. This is important to consider as Levi’s jeans in the U.K are up to 266% times more expensive than in the U.S. (Source: Levi.com) As the U.K is a very multicultural city, Levi’s must ensure that they are catering to, and not excluding, people of different cultures. This is especially important being a global brand, and will help drive customer satisfaction and loyalty.

As the cost of living increases, disposable income decreases. People may be more incentivized to spend only on what's necessary, and therefore spend less on shopping (Monaghan, 2017), this may affect Levi’s sales as customers may turn to cheaper brands to purchase denim from.

 Social

Diverse and multicultural landscape  Increasing cost of living and education  Consumer confidence is negative, but is rising

Though consumer confidence is negative, this will have a very minor impact on the retail industry (RTT, 2016), and as consumer confidence is rising, this is a factor that won’t affect Levi’s as a company.

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MACROECONOMIC ANALYSIS |

The U.K. is soon becoming an international hub for developments in blockchain technology, which is an encrypted database of information and transactions. It is increasingly being used in the retail sector to improve accuracy and speed in the supply chain, host transactions and battle counterfeiting. Levi’s can invest in this technology to help it optimize the way its supply chain works.

 Technological

Growing use of blockchain technology  Investing £1.3billion in artificial intelligence

Artificial intelligence is used in the retail sector to enhance the customer experience by providing personalized products, and using data to tailor services towards an individual. AI is also used to automate some parts of the supply chain process in order to increase speed and efficiency. Levi’s may invest in AI to both automate parts of its supply chain, and to also interact with consumer data in order to increase overall profitability to the business.

The GDPR will significantly alter the way businesses handle user data and gives consumers more power over the information they provide. The impact on this for Levi’s is that when operating online, the reach of user data collected and it’s uses are now limited.

Legal

Environmental

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General Data Protection Regulation (GDPR) enacted in the U.K.  Trade barriers from Brexit

As the U.K. prepares to leave the single market, there will be several barriers to trade that did not exist before. Previously, the U.K. traded with other countries through the EU’s bilateral trade agreement, however upon leaving the EU, the U.K must hold trade talks with several countries to come with its own trade terms.

This may impact Levi’s ability to import it’s products into the U.K. market for a desirable price to the customer.

The U.K. is actively developing plans on how to meet the agreements of the Paris Climate Accord. Part of this is reducing greenhouse gases to 0% by 2050. Considering this, Levi’s will need to analyze its own supply chain to see where it can reduce its carbon footprint.

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Paris Climate Accord Leaving Brexit means EU environmental protections are removed

There is a risk that there will be a reduced number of environmental regulations in the U.K. after Brexit. These include regulations on air pollution and chemical management. The impact that this will have on Levi’s will be minimal, as Levi’s supply chain is dedicated to operating in a way that reduced its environmental impact regardless.

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According to the Business of Fashion, not only are personalized products going to be in demand but also personalized services—which includes services for customizations. Personalization (the umbrella under which customization lies), has been identified as the number one consumer trend in the U.S. market (Amed, 2018). This is as consumers have a growing desire to express their own style and creativity through customized fashion.

Another trend identified in the fashion industry is the use of digitalized systems to create ease of use in the buying process and to engage with customers on a deeper level. An example of this would be through integrating artificial intelligence, chat-bots, and self checkout systems into the store and online spaces (Amed, 2018).

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In 2017, Levi’s experienced a net revenue growth of 7%, and a growth in gross profit margin of 1.1%. As stated in the 2017 Annual report, this could be due to heavy investment in marketing activities such as the ‘Live in Levi’s’ campaign, due to a growing e-commerce platform, and international operations (Accounting for 52% of Levi’s total business).

Source: Levi’s Annual Report 2017

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MICROECONOMIC ANALYSIS |

Levi’s operates as a vertically integrated business, owning each company involved in the production of its products. As all suppliers are owned by Levi’s they are subject to their rigorous terms of conduct which lays down guidelines for labor, health, safety and the environment protections in order to ensure that the production process is both sustainable and ethical.

Levi’s relies on third party distributers to warehouse and deliver the manufactured product to its wholesale customers, through whom they distribute their merchandise through a mix of company operated and franchised retail stores and their own e-commerce website.

Recently it was announced, that as of 2020, Levi’s will be completely overhauling its supply chain in a project titled Project F.L.X (Future-led execution) in order to increase its sustainability and reduce the environmental impact of producing its denim.

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In the primary research it was apparent that many found Levi’s to be synonymous with denim itself, and there was consensus that Levi’s provides the highest quality jeans in the market. In the focus group however, it was identified that even though Levi’s jeans were great in quality, there was little besides price, that they felt differentiated Levi’s jeans from competitors like H&M and Topshop.

3/4 participants of the focus group stated that they didn't feel Levi’s to be an innovative or exciting brand. Though some were aware of their ad campaigns, few recognized anything that stood out to them, as they feel that they haven't heard any communications from the brand in terms of new and exciting developments.

In the customer interview and focus group it was stated that they appreciated that Levi’s is one of the only brands (Participants weren’t aware of GAP), that did customization for denim, however stated that it was disappointing the process wasn’t very efficient.

Overall the consumer perception of Levi’s as a brand is centered around their denim, however some customers feel that Levi’s could be doing more to make themselves a more exciting and innovative brand to set themselves apart from being just a denim brand.

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MICROECONOMIC ANALYSIS |

As observed from the primary research, Levi’s main competitors were identified as GAP, H&M and Topshop.

Where GAP is a direct competitor with Levi’s in terms of their strong relationship with denim, H&M and Topshop are competitors in that they provide good quality denim as part of their product offering, and for affordable prices. (See: Appendix I and V)

LEVI’S

GAP

H&M

TOPSHOP

1853, San Francisco, USA

1969, San Francisco, USA

1947, Vasteras, Sweden

1964, Sheffield, UK

Brand Identity

‘Epitomizes classic American style and effortless cool’

‘The apparel and accessories brands anchored in optimistic, casual, American style’

‘Fashion and quality at the best price in a sustainable way’

‘A global fashion and beauty destination that connects women with the new and the next in style and culture’

Target customer

Men and women 0-45+

Men and women 0-45+

Men and women 0-35

Women 15-30

Founded

POP

High-street brands selling denim and apparel for men and women.

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POD

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Rich American heritage rooted in denim Availability of denim customization with the Levi’s Tailor Shop

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 Brand heritage as an icon of American apparel Availability of denim customization in select stores

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Known for its sustainable initiatives Trendy fashion with a wide range of product categories Allows for recycling of old garments in-store

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Presenting at London Fashion Week Personal shopping and styling service

Combined social media followers

30.2M

12.1M

69.1M

14.9M

London stores

8 stores

21 stores

35 stores

10 stores

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In-store technology

Levi’s and its competitors will be judged by its customer experiential level, and the level of in-store tech that is used by each brand.

Customer experiential level

As observed, Topshop has the highest level of in-store technology and customer experiential level, which is achieved through the combination of the two—using in-store tech to create a unique and memorable customer experience. An example of this has been with Topshop’s use of VR to create a waterslide in their Oxford Street store.

Though Levi’s has a high level of customer experiential level through personal interactions with sales staff and the availability of customization, there is a lack of digitalization in-store which would enhance this experience.

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 Strengths        

Weaknesses

Is the market leader for denim and is synonymous with the creation of denim itself Great quality denim Strong UK and European presence Innovative and sustainable company strategies Availability of cheap customization Support for a wide range of social causes High brand loyalty (Rudenko, 2014) Offers student discounts

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The process of customization is still very basic and can be a time consuming process (See: Appendix III)  Perceived by some as unexciting and not innovative (See: Appendix IV)

Opportunity    

Create ease of customization Make use of digital innovations in-store Use of influencer marketing Expand into new markets

Threats  

Competition from cheaper high-street brands like H&M and Topshop for denim Threat of customization becoming commonplace and not unique to Levi’s (i.e.: Gap’s denim customization bar)

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The importance of the strategic options matrix is to identify opportunities of growth within Levi’s, and how to grow or maintain a competitive edge in the market—all in order to heighten Levi’s market value.

Based on the SWOT analysis, a strategic options matrix has been developed, Levi’s will use the following options to generate new growth:

Product/Service

The products and services offered by Levi’s are its anchor. The brands product range is centered around its iconic denim. Also offers customization and alterations as a service. (As identified from SWOT and primary research)

Technology

Technology will become Levi’s anchor. The brand will integrate the use of technology into its operations to generate growth.

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Low cost

Quality

Speed

Service

Innovation

Product/Services

Customer/Market

Technology

Production Capacity

Distribution

Through the strategic options matrix it has been identified that Levi’s will improve on its product/services to deliver better quality, speed and superior services, and technology, to improve on the quality of service provided, and in innovation of the service.

From the strategic options matrix and SWOT analysis, 2 growth opportunities have been identified:  Improve the customization process in terms of ease and quality of service  Digitalize the Levi's store to improve the quality of service and general customer experience

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The marketing strategy is proposed to establish a new digital customization concept store in London by April, 2019. The strategic marketing plan will follow from November until the launch in April, for 6 months

Our aim: ‘To increase brand awareness and enhance brand engagement with the consumer through opening of the Levi’s digital customization store in London.’

Objectives

Marketing tools

AIDA objective

1) To heighten Levi’s brand awareness through digital, print and outdoor advertising

Advertising

Awareness, Interest

2) To establish strong brand engagement between Levi’s and its consumers with an influencer led PR campaign

Public relations

Awareness, Interest, Desire

3) To facilitate sales in-store through effective personal selling and sales promotion techniques

Personal selling, Sales promotion

Desire, Action

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Levi’s target market will be segmented by age. As observed from the survey, 3 age groups can be observed as Levi’s shoppers, those of Generation Z, Y and X. Generation Z

Generation Y

Generation X

Region

Europe

Europe

Europe

Density

Urban

Urban

Urban

Age

18-24

25-34

35-52

Gender

Male and Female

Male and Female

Male and Female

Occupation

Students and young professionals

Working professionals

Professionals often in managerial positions

Lifecycle

Young, often single, living on their own

Personality

Independent, confident and socially aware

Usage

Everyday usage

Benefits sought

Stylishness, comfort

Brand loyalty

Low brand loyalty (Schroer, 2017)

Values

Values social responsibility and authenticity (Perlstein, 2017)

Social class

Lower middle and middle class

Geographic

Demographic

Behavioral

Psychographic

Young and single or married with or without kids Self-expressive, liberal and socially aware (Main, 2017) Everyday usage Stylishness, comfort, durability Medium brand loyalty (Schroer, 2017) Uncompromising with personal values, value social responsibility (Schawbel, 2013) Lower middle and Middle class

Older, often married with children Very skeptical (Schroer, 2017) Everyday or usage on the weekends Stylishness, authenticity, durability High brand loyalty (Lamb, 2017) Looks for authenticity and want to be made to feel special (Lamb, 2017) Lower and Middle class

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The concept store will be targeting those of Generation Z and Generation Y, who are primarily comprised of 18-35 year olds, and are primarily university students or working professionals. The marketing efforts is targeted both towards existing Levi’s consumers, and consumers who have yet to become customers of Levi’s but fit the target market. 

The aim is to position Levi’s as a young, forward thinking and innovative brand in the minds of young consumers, and as a denim brand that provides a personalized and invaluable shopping experience to each customer buying Levi’s jeans.

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The new marketing strategy for Levi’s is the launch of the Levi’s Design Studio, a concept store elaborating on the existing concept of the Levi’s Tailor Shop by digitizing the process to deliver unique and exciting customer experience, while giving Levi’s consumers an easier way in which to customize their favorite denim.

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The concept store will offer exclusively the staple products from the iconic 501 and 511 range to be bought and customized, however customers are free to bring in any Levi’s jeans, jean jacket or shorts to be customized in the Design Studio.

Product categories offered

Product ranges

Customization offered Length alteration Jeans to shorts Monogramming

Jeans

501 Original, 501, Skinny Jeans, 501 Taper Jeans, 501 Crop Jeans, Patches 501 Stretch, 511 Slim Fit Studs

Rip & Repair Tapering

Monogramming Patches Shorts

501 Shorts, 511 Shorts

Studs Rip & Repair Monogramming Jackets

The Trucker Jacket, Original Trucker Jacket, Original Sherpa Trucker Patches Jacket, Ex-Boyfriend Trucker JackStuds et Rip & Repair

The value provided to the customer of a customization service is that the service lengthens the life of their existing denim products, and helps them express their creativity by creating a unique garment tailored to their tastes.

For consumers, customization is also a key factor in securing brand loyalty (Spaulding, 2013)

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MARKETING MIX: PRODUCT |

Depending on the sales figures generated by the Design Studio, in the future there are opportunities to extend the product range categories, ranges and customizations offered to allow customers to buy and customize a wider range of products in-store.

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As this service elaborates on an existing service offered by Levi’s, pricing will be done according to the established pricing structure for Levi’s customization.

Customization list

Prices

Length alteration

Free

Jeans to shorts

£10

Monogramming

£20

Patches

£2-£4 per patch

Studs

£1 for 5 studs

Rip & Repair

£5-15

Tapering

£10

The cost of customization excludes the cost of the garment being customized, should the customer decide to buy a product to customize, the cost of the product shall be added to the final price. The price is also inclusive of labor costs and any materials used during the process.

In addition to this, irrespective of price, customers will have to pay £2 as a service charge to cover logistics. This is due to the fact that the garments are not tailored in house and will have to be sent to a nearby store and then to the customers chosen collection point.

Competitor GAP offers a similar customization service for studs, patches, embroidery, hemming and distressing, for free, however the cost of Levi’s customization positions the customization service as superior in quality of the service and customer experience offered— due to this, Levi’s customers aren't as price sensitive.

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As stated in the survey and interview, Oxford Street was the place most respondents said they shopped at, and due to the close proximity of Carnaby Street (approximately a 7 minute walk), it became the obvious choice to home the Levi’s Design Studio.

Located at the heart of London’s shopping scene, Carnaby Street has approximately 44 million visitors per year, with a consumer age range of 16-34, and 40% of visitors being male and 60% being female. (Source: Hanover Green LLP) — these factors make it a very attractive location to operate. The proximity to Oxford Street also provides huge exposure for tourists, ensuring a higher potential of customers visiting the store.

The store will be located on 43 Carnaby Street, at the intersection between Ganton Street and Carnaby Street. The price per annum is £270,000, exclusive of rates, and the contract is stated for 12 months.

The tailoring of the garments will be divided between both the Regents street store and the Carnaby street store in order to cope with the predicted demand. Their close proximity to the Design store and the availability the pre-existing tailoring shop within the stores also make the placement of the Design Studio effective.

Collection of the product will be chosen according to the customers preference, the customer can have the finished product sent to the Design Studio, where it will be stored in the stockroom until collection, or customers can opt for having the product delivered to an alternative Levi’s store.

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Levi’s Carnaby store

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The promotion tools selected have been chosen in relation to the aims and objectives of the marketing strategy, each with their own objective in order to achieve AIDA. The promotional tools applied in the promotional strategy will consist of advertising, public relations, personal selling and sales promotion tools.

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The objective of advertising is to build brand awareness, awareness of the Design Studio and create interest across all platforms to our target market.

Owned media: The announcement of the opening of the Design Studio will first be announced on the Levi’s Instagram, Facebook and YouTube pages in March, a month prior to the official launch in order to create buzz and build up anticipation.

Upon the launch of the Design Studio, social media content will be uploaded to Levi’s main social media pages (Facebook, Instagram and YouTube) to promote the store. On a weekly basis, user creations will be shared, demonstration videos will be uploaded and customer testimonials will be shared on these pages to help build awareness and drive traffic to the store.

Levi’s will also send an email to its subscribers a month prior to inform them of the opening of the Design Studio; and then on a bi-weekly basis for a month, will send emails of content and information on the store to entice its subscribers to pay a visit.

Paid media: When promoting online, Levi’s will be making use of adverts on 3rd party websites such as Facebook, Instagram for social media, and Timeout and Cosmopolitan online for magazines.

When advertising on Facebook and Instagram, adverts will be directed towards users who match the target audience age, location, are interested in fashion and who have or has

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friends that have liked the Levi’s social media pages. This form of targeting ensures that the advertising reaches not only a wide audience, but also the right audience targeted in the marketing strategy.

Advertising on Timeout and Cosmopolitan will be achieved in the form of banner ads on the magazines website and mobile app.

Instagram advertisement and Facebook desktop advertisement

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MARKETING MIX: PROMOTION STRATEGY |

For promoting in print, Levi’s will opt for advertising in a mixture of fashion and lifestyle magazines in order to capture a broader audience.

The magazines advertised in will be Timeout London, Cosmopolitan UK, Elle UK, GQ UK and GQ UK Style; these magazines have been chosen due to their high readership and their target audience (See: Appendix VI). Levi’s will advertise in the aforementioned magazines in April, coinciding with the opening of the Design Studio.

Levi’s will also use outdoor means of promotion. Promotion will take place on buses frequenting the Oxford Street area, Oxford Street Station and Piccadilly Station and on promotional boards that will be placed around the Carnaby street area, directed towards the Design Studio.

Due to the high traffic of shoppers and tourists in the Oxford Street/Piccadilly area, this form of promotion has a very high level of visibility and is the most ideal way to drive people to the Design Studio due to its proximity to Carnaby Street.

Bus advertising on buses frequenting the Oxford Street area

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Advertisement for the tube station corridor of Oxford Street Station and Piccadilly Station

Earned media: To increase customer engagement, there is the creation of the hashtag #DesignYourDenim, users will be encouraged to share their designs on Instagram, with the chance to be featured on the Levi’s UK Instagram page.

Users also have the chance to be selected to provide testimonials on the service in a video that will be uploaded to social media.

This is a method through which Levi’s can generate free publicity through its customers, build customer engagement and drive traffic to the store due to the notion that people trust authentic and unprompted referrals. (Gallegos, 2017)

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MARKETING MIX: PROMOTION STRATEGY |

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As observed in the STP analysis, our target market values authenticity in the brands that they choose to interact with, it is because of this that they look to influencers to help guide them in their decision to buy as they are seen as more authentic and trustworthy than traditional marketing. (Amed, 2018)

Levi’s will utilize an influencer-led PR campaign based on Instagram, where influencers will post a picture of their own unique Design Studio creations in order to entice their followers to go and create their own. The aim of this campaign is to build awareness, interest and create desire.

The influencers that will be taking part in this campaign are the band, The Vaccines (127k followers), style blogger Megan Ella (180k followers), style blogger Patricia Bright (862k followers) and fashion model Neelam Gill (134k followers). The influencers chosen are all young and British based, with backgrounds in both fashion and music to reach a wider audience.

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When entering the Design Studio, customers may feel overwhelmed by the concept of the store and what they are looking for in the experience, the sales staff will be present to promote and educate the customer on the way the Design Studio operates and will also be able to provide personalized help for every customer—this could be in terms of help with styling, finding something for the customers budget, collecting items to be customized and any help needed for operating the system.

The advantage of using personal selling as a marketing tool is that it engages customers in the experience of being in the Design Studio, and helps form a relationship between the brand and the customer that’ll become the foundation for future brand loyalty (Riley, 2016).

It is important however to note that even as personal selling is a marketing tool, participants in the focus group have stated they would not want the interactions with sales staff to be aggressive, and interactions are ideally initiated by the customer themselves.

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

As the marketing strategy is partly aimed towards university aged students, they will be given a student discount of 15% off all purchases in-store as an incentive to buy.

As further incentive to continue to purchase at Levi’s and generate brand loyalty, anyone who signs up with their email upon payment at the Design Studio will get 10% off their next Levi’s purchase.

ON YOUR NEXT LEVI’S PURCHASE ONLINE OR IN-STORE

Newsletter sign up welcome

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The culture of Levi’s is based on the values of empathy, integrity, originality and courage (Source: Levi.com), it is important that not only does the store experience deliver that message, but also the sales staff, as they are the prime means of contact between the brand itself and its customers. A core part of the experience of the Design Studio is not just delivered through the customization service, but also through the interactions between the customer and sales staff—it is a means of adding value.

Staff in the store will act as sources of information to the customer and will also provide styling and technical support to make the customer journey as seamless as possible.

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

The website landing page is the main source of information on the Design Studio. The destination link for all online advertisements will be to the landing page, where consumers can learn more in-depth information into what the Design Studio is and how it works.



The app will offer the user two options, one to buy and customize a new garment that they will later purchase with the customization, and a second to allow the customer to customize a garment already owned by them.

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MARKETING MIX: PROCESS/PHYSICAL EVIDENCE |

‘Buy and Design’

‘Design Existing’

1

Customers browse the catalogue of listed products to choose an item to customize

Customers state what product they are bringing to be customized. Customers can only bring in Levi’s garments that are either jeans, shorts or denim jackets.

2

The customer then chooses the customization listed for the selected garment from the customization menu. Customers can choose up to 3 customization's for one garment.

3

The customer then moves to the customization area where they can add patches to the garment, for example, or take off centimeters of length in the case of length altering.

4

The customer then moves to the next step were the design will be digitally rendered on a model on the LED screen above the customer. The model will do an array of poses to display a 360 degree view of the garment.

Should the customer want to go back and edit the design, they can press the ‘back’ button.

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After the customization is over, the customer can then choose to buy the garment and the design.

The customer moves to the purchase page and can input their card details or pay by PayPal. The store does not accept cash.

Student discounts can be applied here.

The customer also have the option to sign up to Levi’s newsletter, upon which they’ll receive a 10% discount on their next purchase.

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After the customization is over, the customer can then choose to buy the design.

The customer will be prompted after purchase to hand over the garment to a member of the sales staff to be sent for customization.

The customer then decides where the finished garment will be delivered to: to an alternative Levi’s store, or to the Design Studio to collect in 2-3 working days.

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ï‚·

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During and after the marketing operation, it is always important to evaluate the process each step of the way. This is so as to evaluate the success and execution of each of the marketing tools implemented and to understand whether the aims/objectives have been met, the AIDA model has been achieved and how the execution and planning can be improved upon when developing the next marketing strategy.

Evaluation will be conducted using Key Performance Indicators (KPI).

Sales assessments will be made on a monthly basis, and marketing assessments on a weekly basis for the duration of the marketing operation.

Marketing tools KPI

Advertising, Public Relations Awareness

Consideration

Preference

Reach of social media content

Clicks to website landing page

Landing page views

Comments

User sharing posts on social media Likes on posts and new followers on the brand social media pages

Reach of paid advertising content

Content views

Use of hashtag

35

Personal selling

Sales promotion

Purchase

Loyalty

In-store revenue

How many signed up to the newsletter Use of promotion codes

36

Activity Submit marketing plan Budget approval

Nov

Dec

Jan

Feb

Mar

Apr

Budget N/A £350,000

Notes

Store Development Arrange building contractors

N/A

Visual Merchandising

£6,000

Cost of fixtures, furniture and decorations

In-store tech

£40,580

Inclusive of digital displays and IPads

Store building

N/A Pre-launch Preparation

Developing marketing and advertising materials

Submission of advertising materials

N/A

This includes material to be sent to 3rd part advertisers, social media content, newsletter content and website content

N/A

Submissions for magazines: Elle, GQ, GQ Style and Cosmopolitan for the April issue (+S/S 19) is February-April.

Submissions for Timeout from April is March.

N/A

Submissions for online: Timeout and Cosmopolitan online are March-April.

Launch of website landing page

N/A

Newsletter email

N/A

Sent on a bi-weekly basis from MarchApril

N/A

The launch of the store will be announced in March. Promotional content will be posted on Facebook, YouTube and Instagram.

£60,910

Advertising online and in mobile: Timeout online, Facebook ads, Instagram ads, Cosmopolitan online

£65,875

Print advertising: Elle, GQ, GQ style and Cosmopolitan (April Issues). GQ Style (S/S 19 issue). Timeout (Weekly in April)

£20,003

Outdoor advertising: Advertising in Oxford Station and Piccadilly station, Buses, and outdoor poster boards in Carnaby

Post on social media

Paid media advertising

37

Influencers: The Vaccines, Megan Ella, Patricia Bright and Neelam Gill on Instagram

Influencer marketing

£60,000

SEO

£1,500

Staff training

N/A

Training involved in customer care and operating and managing the customization system

Sales staff

£80,000

This is inclusive of sales staff in-store, and customer care teams

Direct marketing

N/A

Store Launch

Logistics

£5,000

Handled by customer care Transporting items from the store to the tailor shop, and from the tailor shop to the respective store to be collected

Post Launch Discounts on newsletter

N/A

Evaluation

N/A

TOTAL COST

£339,868

Remaining budget

£10,133

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Evaluation of sales will be made on a monthly basis, whereas evaluation of marketing activities will be made on a weekly basis

39

40

APPENDIX: SURVEY RESULTS |

41

42

APPENDIX: SURVEY RESULTS |

43

Conducted with an employee at a Levi’s branch in Westfield Stratford.

Date completed: 9/05/2018 1) How would you describe the identity of Levi’s?

It has authenticity because it’s a brand that’s been around for a long time, and since they invented jeans, they are known as the original jeans brand.

2) In terms of in-store marketing, is there anything specific that Levi’s do?

The sales assistants and stylists are seen as ‘models’ for the brand as we wear Levi’s clothing as our uniform, so people can see us wearing the clothes and get interested.

3) In terms of age and gender, what type of customers do you see here?

It depends on the area and where the store is, but here it is generally mixed.

4) How does the process of customization work?

You have to come in when the tailor is in and then you can directly tell them what you want.

Though sometimes the timings differ so customers who need customization or alterations can also describe it to the sales assistant to be relayed onto the tailor.

5) Do a lot of the customers that come here make use of the customization's or alterations you provide? Do you think they are aware of it?

We have some customized products on display, so customers often ask if they can buy it or have one made. The tailoring station is also in the front of our store to see.

6) What do you think sets Levi’s apart from other brands that sell jeans for a cheaper price, for example Topshop and H&M? Definitely quality, they don’t stretch as much and they last a lot longer. The colors also last longer.

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Name: Sarah Reed Age: 20 Occupation: University student Date completed: 13/05/2018 1) Do you shop at Levi’s often?

Not often, I’ve bought 1 or 2 pairs of jeans from them.

2) Do you think there is a need for customization in denim?

I think denim already is quite a personal item to people. As someone who is quite short, I would rely on alterations to make my jeans wearable. I also think it would be nice to add things to your jeans to make it truly yours.

3) Have you ever tried out the customization service? What was your experience?

I went for an alteration, so I had to try on my jeans and have a sales assistant pin it where I wanted it altered. I then went to the counter where I had to log in my details in a book and they gave me an estimate of when my jeans would be done. Though the staff were excellent, the process was slow and quite a hassle in my opinion.

4) The idea for this concept store is to digitalize the customization process by allowing you to customize and pay for your customization through an IPad, and have a digital rendering of your design. What do you think of this idea?

I think that would be quite cool. It would be nice to have an idea of what the product would look like before you commit to spending money customizing it.

5) Where do you think would be the best place to put this concept store?

I shop a lot in Oxford Street, so that area would be good.

6) What do you think Levi’s offers that other high-street brands don’t?

Their jeans are much better quality, they have a wide range of jeans, and they offer customization.

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Conducted with four Levi’s customers.

Name: Anxhelino Graci Age: 22

Name: Tan Wei Tieng Age: 21

Name: Seraina Spence Age: 20

Name: Zoya Jawed Age: 25

Date completed: 17/05/2018

1) When you think of Levi’s, what comes to mind?

AG: When I think of Levi’s I think of jeans and the ‘Live in Levi’s’ advert WT: I would think of the denim that the brand produces. They offer a wide range of denim products, that’s also the reason why they are my first choice when comes to shopping for denim products.

SS: Jeans and denim, I also think Levi’s is a very American brand.

ZJ: Traditional denim clothing with American roots.

2) Would you consider Levi’s to be an exciting and innovative brand?

AG: To me, Levi’s is a brand that is seen as one of the go-to brands for jeans, however I don’t see it as innovative or particularly exciting.

WT: I think the brand is more of a innovative brand. They often have new innovations incorporated into their collections, one of the examples would be the WATER<LESS innovation, where they use technology to reduce the amount of water used in denim finishing.

SS: Somewhat, I saw their ‘Live in Levi’s’ campaign and I thought that was refreshing and exciting, however I don’t really hear about anything new or exciting that the brand is doing.

ZJ: Levi’s to me isn’t that exciting because personally I find it to be a traditional denim clothing brand.

3) Is the concept of digitally customizing your denim in a Levi’s store something that is appealing to you?

AG: Of course, since I have trouble finding skinny jeans that fit just right this would customize the shopping process for me and help me get the product I want without the hassle of constantly looking around through countless stores trying to find exactly what I want.

WT: Definitely! I’m a customization person, I would always go for customized products. Customized products will give me a sense of exclusivity, the feeling of having a one-and-

46

APPENDIX: FOCUS GROUP |

only product. Moreover, to me, combining customization with digital will bring about new interesting and engaging experiences to the customers shopping in store.

SS: That would be really cool. I feel like I can see and create something that’s unique to me that no one really has.

ZJ: Yes, it’s a new way of customizing and I haven't seen other places have this concept before.

4) When you're in a store, what would you like your interaction with the sales staff to be like?

AG: I would like the staff to be easily found and be knowledgeable about the products that are sold in that particular store, so when I might need help, the process will be as short and easy as possible.

WT: I would say I’m quite particular with the standard of customer service in store. The attitude of the sales staff is an aspect that I’ll review at. Positive attitude (hospitable and helpful) from the staff will appeal to me and in return increasing my want to buy from the brand.

On the other hand, negative attitude shown by a sales staff will drive me away from the brand.

SS: I prefer to shop without any help, but if I did ask, I would want them to be able to pick out styles they think would suit me and try and help me find what I’m looking for. I almost want them to act as a personal stylist.

ZJ: Not too overbearing, a simple conversation and any additional conversation in terms of any help needed.

5) What are some things you think Levi’s can improve on regarding their in-store experience?

AG: I would like the checkout method to be faster, possibly implement a self checkout option as it has yet to be implemented in clothing stores. This would make my shopping experience faster and more convenient.

WT: I think that staff should be more interactive. For example, the staff can recommend the customer to buy a matching top in addition to the jeans that they bought. Certainly, upselling can be one of the factors that the brand can work on.

SS: To me it seems very plain, maybe they could use digital screens in-store to help with the checkout process. I went to one Levi’s store and they actually asked me to write down my details in a book, so I feel like replacing that with an IPad would be more convenient.

ZJ: Updates in the music playing, and the layout of the store, many include some more posters.

6) Would you consider GAP, H&M and Topshop to be a competitor of Levi’s?

AG: I would consider H&M a competitor of Levi’s as I often visit H&M to see their selection

47

of jeans. This is because H&M jeans are cheaper in comparison to Levi’s jeans and also fit more comfortable to my figure.

WT: I would say GAP. If I can’t find items I want from Levi’s, usually denim products, the second option that I will go for is GAP. They offer a pretty good selection of denim products too.

SS: I would say yes, I usually buy my jeans from H&M because its cheap and the quality is good for what you pay for. I also know that GAP is quite well-known for their jeans as well.

ZJ: I don’t think H&M and Topshop are because they are more fast fashion and keep up with the fashion trends, whereas Levi’s is more grounded in heritage.

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High prices

Trend based

Rooted in core style

Low prices, affordable

49

Magazines GQ Timeout

Elle

Cosmopolitan Combined potential reach

Readership

Circulation (per month)

Average age

Gender focused

USP

404,000

114,000

34

Male

Male centered fashion magazine

29

Male and Female

A guide of all things happening in London

1,100,000

1,339,130

822,000

177,000

27

Female

Female centered lifestyle and fashion magazine

1,180,000

405,308

28

Female

Female centered fashion magazine

3,506,000 people

50

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