1
2
The Brand SWOT Analysis Competitors Product Comparison
4 6 8 11
A/W ‘15 Line Development Target Customer Trend Analysis Color, Print, Fabric Story Style Sheets
15 17 21 24
Merchandising Plan Six Month Buying Plan Ratios Assortment Plans Purchase Order
35 36 39 49
Visual Merchandising Strategy
51 3
4
5
6
Levi’s is a founder and innovator in the fashion industry, which certainly is an advantage. Their long history has rooted them in fashion and American culture. The brand has been around since 1873 and their adaptive marketing has evolved and kept the brand relevant and popular. A large weakness at the same time though is the reliance on their history. The name and knowledge of Levi’s isn’t enough to make sales and attract new customers in a saturated market like denim. Stephen Neal’s quote about the brand itself carrying the company has truth to it. Designers can have a legacy, but the future is always coming for new ideas and fresh designs.
The timelessness of jeans give opportunities and stability in the industry. The love and need for jeans will not fade anytime soon, but the challenge lies in making a tried and true product new again. The biggest threat comes from a highly competitive market and attracting new customers while keeping loyal ones. A historic brand doesn’t have to mean an old brand, and with this idea, Levi’s has wide possibilities.
7
8
9
10
Though all the mentioned brands primarily sell jeans, the style, quality, and price can be far different for Levi’s and its competitors. As an online retailer, levis.com is laid-back, easy to navigate, and unique: one knows they’re on the Levi’s site. Lee Jeans is simple in their online layout and information is not always clear or visually distinctive. Madewell brands themselves clearly with the layout and adds quirky names to their items, like the “perfect summer jeans.” The denim category is labeled the denim bar. Both Levi’s and Madewell’s models are tall, skinny and more styling goes into the product shoots. Lee’s models are curvier and the poses are all very standard, not showing the model’s upper body. A pair of skinny jeans were picked from each of the company’s e-commerce sites. The description, size options, color choices and fiber content were all compared as well as price. Levi’s and Lee were similar in price, though Lee had many clearance options and Levi’s jeans generally run from $50-100. Madewell had less color choices and was the most expensive, almost three time that of Levi’s. All the fiber contents were very similar.
11
Levi’s 524 Skinny jeans come in sizes 0-17 with three inseam options. There are four colors with names “Indigo Desert” and “Blue Mine.” The descriptions says it has the slimmest fit at the knee and leg opening and a low rise below the hip. The fabric is also from the WaterLess collection and is made from 81% cotton, 17% polyester, 2% elastane. The price is set at $46.00.
12
Madewell’s Skinny Skinny Jeans come in only one color, the lyndon wash. The sizes run from 24-32 and come in regular and tall. Madewell asserts that their jeans “never bag out and does life-altering things to the rearview.� The fabric is made of 92% cotton, 5% polyester and 3% elastane. The price is $128.00
13
The “Easy Fit Frenchie Skinny” jean helps the wearer feel the difference with Slimming Stretch fabrics. It comes in four colors with names like “Americana” and “Orion.” There are sizes 2-18 and three different lengths. Petite and plus sizes are also available. The fabric is a stretch denim consisting of 91% cotton, 7% polyester and 2% spandex. The original price was $42.00.
14
15
16
17
18
19
The table below shows the garment’s retail price, unit cost, and fabric cost. The difference between target fabric cost and fabric quick cost is assuming that the target fabric cost is 60% of the unit cost. The quick cost is the actual wholesale cost of the chosen fabric multiplied by the estimated yardage needed for the garment. If the fabric quick cost is less than the target cost, the garment can be sold for the listed retail price. All ten units met this requirement, so no further price adjustments were needed.
Style Number
Unit Retail
Unit Cost
Target Fabric Cost
Fabric Quick Cost
#34478
$68
$27.20
$16.32
$10.38
#33498
$55
$22
$13.20
$8.07
#44570
$49
$19.60
$11.76
$11.43
#22431
$88
$35.20
$21.12
$12.48
#33575
$75
$30
$18
$10.77
#77250
$139
$55.60
$33.36
$11.97
#44096
$98
$39.20
$23.52
$12.48
#99702
$78
$31.20
$18.72
$5.98
#22104
$45
$18
$10.80
$5.08
#44509
$109
$43.60
$26.16
$16.23
20
21
22
23
Open Cardigan
Style # 33498
Estimated Retail Price
Sizes XS S M L XL
Fabrics Tissue Slub Knit
$55
Open, oversized cardigan with a draped lapel and hip-length hem. A half sleeve and somewhat transparent knit fabric is perfect for layering.
24
Plaid Tunic Dress
Style # 44570
Estimated Retail Price
Sizes XS S M L XL
Fabrics
$49
Primo Plaids Flannel
Oversized flannel tunic dress, mid-thigh length. Button up with collar and buttoned cuffs. Can be worn as dress or tunic over leggings or pants, worn buttoned or open.
25
Zippered Pencil Skirt
Style # 34478
Sizes Fabrics 24 25 26 27 28 29 30 31 32 Quilted Knit Mini Diamond, Kaufman
Estimated Retail Price
$68
Chambray Union
Knee length pencil skirt with back zipper closing and front slit with zipper trim, not mean for closure, simply detail. Solid quilted fabric, or herringbone print. *Would require lining for fit and stability.
26
Denim Trucker Jacket
Style # 22431
Estimated Retail Price
Sizes XS S M L XL
Fabrics
$88
Kaufman Denim 10 Oz
Classic Levi’s Trucker Jacket in a heavy denim and a khaki, dark and light wash. Shearling trim added for warmth and aesthetic.
27
Chambray Button-Up Shirt
Style # 33575
Estimated Retail Price
Sizes XS S M L XL
Fabrics
$70
Kaufman Chambray
Half-button up collared chambray shirt with buttoned cuffs inspired by menswear tailoring.
28
Strapless Jumpsuit
Style # 77250
Estimated Retail Price
Sizes S M L
Fabrics
$139
Kaufman Chambray
Strapless jumpsuit with a wide leg and zipper closure and hook-and-eye. Easy transitional statement piece, can be layered under sweaters or jackets.
29
Boyfriend Jean
Style # 44096
Sizes Fabrics 24 25 26 27 28 29 30 31 32 Kaufman Denim 10 oz
Estimated Retail Price
$98
Levi’s Boyfriend jeans are relaxed through the leg but fitted in the waist. The most popular way to is to cuff them with sneakers, booties, or flats.
30
Dropped-Shoulder Sweater
Style # 99702
Estimated Retail Price
Sizes XS S M L XL
Fabrics
$78
Tweed Sweater Knit
Thick knit crewneck sweater with a solid torso with a drop-shoulder. Hits in lower at hip.
31
Long Slouch Top
Style # 22104
Estimated Retail Price
Sizes XS S M L XL
Fabrics
$45
Tissue Slub Knit
Long-line slub knit top with a draped open neck and drop shoulder, asymmetric hemline. Lighter colors may need a camisole or tank top for layering.
32
Zippered Quilted Trousers Pencil Skirt
Style # 44509 34478
Sizes Fabrics Nordic Cable Knit Mini Quilted Diamond Knit Mini Diamond, 24 25 26 27 28 29 30 31 32 Quilted
Estimated Retail Price
$68 $109
Kaufman Chambray Union Medium Herringbone
Quilted Knee length straight pencil legskirt trousers withwith backazipper slim fitclosing through and waist front and slithips. withButton-fly zipper trim, closure not mean and front for closure, simply detail. Solid quilted fabric, or herringbone print. pockets. *Would require lining for fit and stability.
33
34
35
Considering Levi’s is known for its denim, it can be a common assumption that a collection would consist mainly of bottoms. However to have a balanced line, mainly basics and classic styles that the brand is known for, as well as a few fashion forward items can make the brand stand out for the season, which is something Levi’s has been trying to do in recent years. One of Levi’s best factors is their focus on fit in their clothing. they have an online feature called True Fit that helps determine the best size for your body. It asks a few questions about height, weight, bust size for women, and torso length and size. Levi’s also offers a broad range of solids, neutrals, and cool colors for its denim and other apparel. Neutral colors are usually more popular than seasonal or trendy colors, but this collection has a balance of the two.
Class #
Class
Percentage
1
Tops
40%
2
Bottoms
30%
3
Dress/Suit
20%
4
Jacket/Coat
10%
5
Other
0%
36
Bottoms Tops
Size
Percentage
Size
Percentage
24W/32L
5%
X-Small
15%
25W/32L
10%
Small
25%
26W/32L
10%
Medium
30%
27W/32L
20%
Large
20%
28W/32L
25%
X-Large
10%
29W/32L
20%
30W/32L
10%
37
10%
9%
15%
12%
15%
10%
20%
9%
38
39
40
41
42
43
44
45
46
47
48
Class 2 1 3 4 1 3 2 1 1 2
Style # #34478 #33498 #44570 #22431 #33575 #77250 #44096 #99702 #22104 #44509
Description
Total Quantity
Pencil Skirt
160
$27.20
$68.00
$4,352
$10,880
Cardigan
170
$22.00
$55.00
$3,740
$9,350
Tunic Dress
190
$19.60
$49.00
$3,724
$9,310
Jacket
170
$35.20
$88.00
$5,984
$14,960
Button-Up
170
$30.00
$75.00
$5,100
$12,750
Jumpsuit
150
$55.60
$139.00
$8,340
$20,850
Jean
190
$39.20
$98.00
$7,448
$18,620
Sweater
112
$31.20
$78.00
$3,494.40
$8,736
Slouch Top
228
$18.00
$45.00
$4,104
$10,260
Trousers
160
$43.60
$109.00
$6,976
$17,440
$53,262.40
$133,156
1,700
Unit Cost
Unit Retail
Total Cost
Total Retail
49
The purchase order for November 15 shows that the total purchases for the Desert Frost collection equal $53,262.40. This is under the budget of $87,372. If each item sold at full retail price, this would bring in sales of $133,156.
50
In creating an understanding of the Levi’s brand and a seasonal collection for Fall 2015, the final yet core essence of a brand is when a customer shops in a store to make a purchase. Whether coming in for the first time or a brand-loyal regular, the in-store experience definitely affects how the brand is perceived. With retail changing every year, e-commerce, mobile shopping and other innovative ways of buying and selling are competing with the traditional in-store experience. WGSN reported on five global trends of specialty retailers in denim. A dedication to women’s stores, service and concept or pop-up stores differentiated retailers that sold casual items like denim. The report noted that the instore experience focuses more toward women, showing a rise in denim culture that used to be just for men. “Retailers are catering to their female customer base with a more feminine-inspired store design and features” (WGSN, 2015). These feminine-inspired features included fit and design knowledge from customer service and a “300 degree mirror” which shows more angles in the fitting room. Although Levi’s has men’s, women’s and children’s apparel, women typically value an in-store shopping experience the most. Considering Levi’s are sold at multiple types of retailers around the country- from TJ Maxx to the brand store in Times Square- there isn’t a very consistent way of merchandising the product. For the Desert Frost collection, it would begin in flagship stores and expand to outlet shops around the country. From personal experience in visiting a Levi’s outlet shop, it was pleasant and relaxed even if it was small. Outlet shops are typically in large retail centers such as malls or outdoor shopping centers. There may be more sales happening and the collections may not be the most recent. However, for a customer that knows the brand and is loyal, these outlets are often the only way to get a real Levi’s experience without living in a major city.
51
For our target customer Willow, she most likely visits the Round Rock Premium Outlets in suburban Austin, Texas. This store would most likely offer both men’s and women’s. Children’s products are offered in some stores, but for the sake of space and details with a new collection, the focus is on adult segments. As the customer walks into the store, it would be in a typical rectangular layout, no dividing walls except the back which would have space for fitting rooms and storage. The décor consists of simple wood laminate for the floors and earthy, neutral colors on the walls. Lighting is industrial and in the ceiling, in bare bulb lamps instead of fluorescent blocks. Modern alternative, pop and country music plays over speakers to create an atmosphere instead of distracting the customer Women’s items would be on the right wall and front-middle part of the store. Men’s are focused on the left wall and middle back of the store. Sale items would be located on the back wall along with accessories like belts and bags next to the fitting rooms. The register is a wooden counter with two computer check-out systems in the middle of the store, visible from the entrance. For a ten piece collection that features much more apparel than jeans, a section of the store would be dedicated to featuring new products. To display the new collection, there would be a mixture of product display and merchandising. A crate-like shelf system would have folded items like knits and t-shirts. Two sitting mannequins modeling the product sit atop the smaller shelves. On larger, taller shelves, a rod runs between the shelves for items on hangers. The shelf and mannequin display form a right angle, with a standing mannequin at the corner. A sign or advertisement promoting the new collection would be suspended above the display. An additional feature for both men and women would be two long, low wooden slab tables have jeans of multiple styles and washes for the customer to lay out, inspect or compare. These “denim bars” encourage the customer to explore the product and feel it instead of seeing jeans neatly folded on shelves. To complete the experience of shopping for denim and the new collection, a mirror with multiple panels to create a “300 degree” view would be in the fitting room area. The customer can step up on a low platform and see how the item fits and looks from multiple angles. With seeing, feeling and trying the item, a customer will leave happy and satisfied with their purchase instead of simply browsing and having a dull experience.
52
Bergh, C. (2014, September 18). Does Levi Strauss still fit America? Retrieved February 4, 2015, from http://fortune.com/2014/09/18/levi-strauss-chip-bergh/ Doneger Creative Services, www.doneger.com, May 8, 2015 Downey, L., & Lynch, J. (1995). 501: This Is a Pair of Levi's Jeans. San Francisco: Levi Strauss & Publishing. Lee Jeans, www.lee.com, May 6, 2015 Levi’s, www.levis.com, May 6, 2015 Levi’s 2013 Annual Report, http://issuu.com/levistrauss/docs/2013-annual-report-final, May 6, 2015 Levi Strauss & Company, www.levistrauss.com, May 6, 2015 Levi’s Visual Merchandising, http://retaildesignblog.net/tag/levis/, April 16, 2015 Madewell, www.madewell.com, May 6, 2015 Mintel Reports, http://academic.mintel.com/display/722257/, March 3, 2015 Unzipped Blog, www.levistrauss.com/unzipped-blog, May 6, 2015 WGSN, www.wgsn.com, May 8 2015 53
54
55