Levis by Sofia Restrepo

L e v i â&#x20AC;&#x2122;s C ustom

“I have often said that I wish I had invented blue jeans: the most spectacular, the most practical, the most relaxed and nonchalant. T h e y h a v e e x p r e s s i o n , m o d e s t y, sex appeal, simplicity - all I hope for in my clothes”. - Yves Saint-Laurent

Levi’s Custom Made & Crafted line, where luxury and denim come together

Ta ble of C ont ents Situation Analysis SWOT Analysis Competitor Analysis Target Market Primary Research Type of research Research Goals Research Design Analysis and Conclusions

Levi â&#x20AC;&#x2122; s C ustom M ADE & CRAFTED LINE

Project By: Brittani Dremman Pamela Duque Sofia Restrepo

FASH 763 - F ashion Promotion Professor: Meeta Roy

Marketing Strategy Positioning Strategy Communication Objetives Communication Mix Budget Allocation Media Strategy Disciplines Activity Map The Creative Idea The Brief The Collaterals Campaign Evaluation Closing Reccomendations Appendix Bibliography

F all 2014

E x c e c u t i ve S u m mary Levi’s created the first pair of jean in 1873 and the rest is history. The storied American heritage speaks of rugged style and individuality that grounds Levi’s firmly as the market leader in men’s denim in the United States. While Levi’s currently holds the largest market share, it’s losing ground in one of the most competitive apparel categories. Premium denim is the fastest growing segment in the United States and if Levi’s doesn’t step in to take full advantage of this market in a unique way, it will lose the denim race toward larger market share. Therefore, Levi’s Custom is proposed. A premium, men’s denim line that offers customization of denim both online and through in-store kiosks at select U.S. store locations, that allows the customer to create the perfect pair of Levi’s. It’s no secret that mass customization is a growing trend; companies like Nike and Burberry offer bespoke product lines through their website, and others are trying to find a way to provide this offer for their consumer. Levi’s Custom will allow Levi’s customers and Levi’s ‘converts’ to take everything they love about Levi’s—it’s heritage, craftsmanship and style, and make it truly their own. They will be able to modify fit styles to suit their unique measurements and choose unique design elements. The integrated marketing communication plan for the launch of the product is centered on it’s digital campaigns. Levi’s Custom will meet the customer and key influencers where they live, work and play to deliver the message. A VIP mini concert tour with the awardwinning band, Phoenix will generate buzz about the new line and inspire people to be unique. Levi’s Custom is also passionate about the men it serves, and is committed to supporting organizations like Movember Foundation to further men’s health and wellness. It’s all about letting the man choose what jeans he wants to live in and give him the opportunity to make a difference in the world at the same time. Sustainability underlines all initiatives at Levi’s and the new line will continue this tradition by bringing the manufacturing back to America. It’s time to celebrate individuality, choose your own path and make a difference in the world—Levi’s Custom will inspire the millennial generation to do just that. Levi’s Custom: for your journey.

Int r odu c t i on The Business Problem Levi’s accounts for 13% of the men’s denim market in the United States and since its creation of the first blue jean; it has been the quintessential American denim brand. It’s arguably the most recognizable brand in the U.S. and as Levi’s puts i t, “ anyone can make a pair of blue jeans, but Levi Strauss & Co. made the first blue jean in 1873.” (Our Story Levi Strauss. NP) Over the last 5 years the brand has repositioned itself as a more fashion forward brand with the introduction of the ‘skinny jean’ and colored denim last year in celebration of the 140th anniversary of the 501 jeans. These updates have successfully captured the millennial generation. Levi’s is offering modern interpretations of its iconic clothing and it shows with the large market share it holds in one of the most highly fragmented categories in apparel. Revenues have been increasing each year for the last five years, but Levi’s is continuing to lose market share. This is either to premium brands that offer a better fit and more style options, or discount brands at stores such as Target that offer a cheaper product. Men’s premium denim is the fastest growing segment of the men’s denim market and while Levi’s recently launched its “Made & Crafted” line, it’s not sufficiently competing in this lucrative category. Without a unique product offering in the premium category Levi’s isn’t able to capture market share from competitors like 7 For All Mankind and Citizens of Humanity. As a brand with much heritage, Levi’s has a competitive edge but we have identified an opportunity in the market for Levi’s to diversify and innovate the premium jeans category in the same vain that it created the first pair of blue jeans.

The Solut ion At its cor e, Levi’s is a denim company and unless it can compete i n the pr em ium m ar ket, it will find it hard to increase revenues and m a rket shar e for its cor e product. Its dedication to sustainability and i n n ovation in fabr ics and Omni channel retailing make it the ideal c a ndidate to launch a bespoke denim line available online and ins t o r es. It has the r esour ces to launch the initiative and to perfect a p roduct line that is not offered by any other premium brands. Th e ‘m aker m ovem ent’ is thriving and with it has brought the m i l lennials desir e to cr eate unique things that express who they are. Th is m ovem ent has ushered in the bespoke and mass customization o p t ions for br ands such a s Nike and Burberry who have led the way. O u r r esear ch goal was to identify a business opportunity for Levi’s t h rough secondar y r esearch of the company’s financials and of m a rket tr ends. We wer e indeed able to just that. Our next step w a s to conduct pr im ar y r esearch in order to identify whether or not o u r concept for a custom denim offering is a viable opportunity for o u r pr oposed tar get. We determined that a survey would be the a p pr opr iate r esear ch technique to learn more about our target’s s h opping habits and denim consumption.

Levi’s Custom is a new men’s product launch that will include a bespoke denim offering online and in-stores through high-tech kiosks. Customers can choose from a range of denim, thread color, rivets, custom sizes and branding patches to create their perfect pair of denim to fit their unique style. The price point will put Levi’s on the map in the premium denim market and compliment its luxury, ‘Lot No. 1’ offering in its New York and San Francisco flagship stores. Users will be guided through the website with instructional videos about measuring and denim construction knowledge on their journey to develop their custom pair of Levi’s jeans. After choosing all elements of the jeans and making the order, the order will then go to the Levi’s factories where it will be processed, created and sent to the customer in four weeks. This intimate experience will allow men to express their unique style and achieve the perfect fit. The creation of the jeans is a process that doesn’t end when the customer receives the jeans but continues as they wear and break in the jeans, making them the ultimate expression of their lifestyle. Levi’s asks, “What’s your story?” and lets the customer choose a pair of jeans that will compliment it.

Situat io n A n al y s i s

Strengths

Weak nes s es

- P ot ent ially t r apped in t heir pr ic e poin t - Too dem oc r at ic t o c om pet e w it h lux ur y b ra n d s - M is c onc ept ion of t he br and f or s om e gener at ions - Low m ar k et s har e in w om en’s appar e l - H ighly dependent on out let s ales - S light diff er enc es bet w een out let pr o d u c ts and s t or e pr oduc t s - Fas t c hanges in f it num ber s and s t y le s

H igh brand aw a r e n e s s Wel l -known and tr u s te d b r a n d Ameri can heri ta g e W i de gl obal di s tr ib u tio n E x t ensi ve resea r c h a n d d e v e lo p me n t L arge advert i sin g r e s o u r c e s M arket l eaders in USA E x t pert i se W i de range of fits a n d ma te r ia ls d e v e lo ped Off er of i nt erm e d ia te s iz e s a n d in s e a ms H igh qual i t y

O pportunitie s

T hr eat s

Growt h i n t he de n im p r e miu m ma r k e t B r ands are now mo r e o p e n to c o lla b o r a t ions W i de cust omi za tio n o p tio n s H igh demand fo r e c o fr ie n d ly p r o d u c ts Growt h i n t he w o me n ’s ma r k e t “ Made i n A mer ic a ” p o p u la r ity C u st omer need fo r d iffe r e n tia tio n a n d u ni queness - M i l l eni al s are a te c h - s a v v y g e n e r a tio n - R isen popul arity o f DIY mo v e me n t

H ighly Fr agm ent ed m ar k et Fas t c hanges in c ons um er t as t es Wide r ange of pr oduc t s ubs t it ut es Ov er all s t y le c hanges w er e jeans m ay bec om e obs olet e - M en ar e look ing f or a w ider v ar iet y of c lot hing opt ions - P r ef er enc e of s hopping in phy s ic al s to re s r at her t han online

S WOT A n a lysis

SWO T Analy si s

Str e n g th s: Levi Strauss has always been an innovative brand since its invention of the jean in 1873; their first step to having the largest market share in the United States. Since the conception of its first products, the company has ensured that they are made with the highest quality materials to withstand everyday life. Jeans made by Levi’s also offer great comfort and versatility, which is why its products have continued to be relevant throughout the years for most consumers. Because of its long history and how they have revolutionized the American fashion, the company enjoys perhaps the highest level of brand awareness worldwide and it is seen as a typical American brand. The American heritage of the brand is one of its core values, which extends into their products, marketing campaigns and stores atmosphere. These details are what drive most consumers to purchase the brand and get the “Original American” jean. The company is highly recognizable and enjoys the highest market share, with 13% in 2013, (Euromonitor Jeans 1). Since the invention of the 501 jeans, the company has focused on providing the perfect fit for any customer. Most of the company`s resources go toward providing a wide range of fits within the denim brand, which are constantly updated according to current fashion trends. One of the most recent innovations the company has implemented is the “denim bar,” which shoppers sidle up to the bar and a store associate helps them figure out what fit, style, and fabric will wash down well. The Curve ID initiative is a line of custom-fit women’s jeans designed to compliment varying body types. Initiatives like this have generated double-digit growth in stores.

S WOT A n a lysis

S WOT A n a lysis L e vi’s has its own innovation lab called “Eureka.” A team of 30 t e chnicians develops new prototypes, taking a product from an i d ea to design in less than 24 hours. T his lab has given Levi’s the o p por tunity to develop m erchandise from environmentally sustainable p roducts to cr eate a technologically advanced women’s denim that f i t s accor ding to each body type. T hey have developed a new pant t h at looks like an or dinar y pair of jeans during the day, but at night, t h e m etallic finish lights up under fluorescent lights. T his ensures that c o nsum er s who cycle ar e seen in the dark (F airchild 188). Levi’s has a l s o developed its “ waterless” jean that is environmentally friendly i n a pr oduct categor y that is traditionally environmentally unfriendly. I n novative pr oducts in combination with brand heritage give Levi’s t h e potential to r each a wider audience, to gain a bigger share in the ma rket and continue being the industry leaders.

We a k n e s s e s : D u r ing the 1990s the company enjoyed a wide popularity and its s a l es r ose to $7.1 billion in 1996. By 2013, sales had declined to $4.2 b i l l ion ( Fair child 185) . In the last few years’ sales have continued t o r ise, but it’s unable to fully translate its brand awareness into i n c reased m ar ket shar e. Its design team was late at identifying new t re nds, and the br and seems to be stuck in time. Loyal customers b e gan shifting to other br ands that offered trendier jeans. T he extent t o which the m ar ket is fragmented with competitors produces a b u yer s’ m ar ket.

For many years, the company failed to fulfill the market demand for trendy jeans and innovative materials. This left an opening in the market for other brands to fill. By offering more innovative jeans, these brands attracted the younger generation, and they started to think of Levi’s as old. During the last five years, the company has repositioned itself and has grown its presence within the millennial generation. But still some of its “disaffected shoppers” (fans who love them, but had left them) and “the lost generation” (fans who don’t really know who they are), as its brand president James Curleigh calls them, still believe the brand is old-fashioned. In 2009, the company was projected to grow revenue 8% a year. In order do this, the company decided to open 400 new retail outlets, which took the company from 1,900 stores to 2,300 (Fairchild 185). This strategy was meant to increase revenue but also to compete at the same price points as its competitors. Later the co mpany found out that not only did its operating expenses grow by 15%, but also these outlets took sales from retail stores, as its primary customer is price sensitive and they don’t perceive the difference between clothes made for outlets and clothes sold at full price in stores. Because of its start as a brand for the working class, the company has maintained prices that are accessible for a wider part of the population and as its CEO, Chip Berg says, “we are a democratic brand”, “It is multimillionaire Silicon Valley entrepreneurs and schoolteachers and plumbers and cowboys and miners. That’s what this brand is all about” (2014). The company tries to appeal to a wide part of the population but within higher income consumers looking for exclusivity, this approach does not work.

S WOT A n a lysis An o t h er issue that wor ks a gainst Levi’s i s t h a t in its r ush to update its fits, t h e c om pany continually changes its f i t n u mber s, which often confuses the c u s t o m er. M ost custom er s that had found a t y p e of jean they like but after some time a re n o t able to get this sam e number again, b e c a u se it has changed to an other number o r b e cause it is no longer produced. T his c o n f u ses clients, and som e of them leave t o f i n d their fit at another br and. D u ri n g the last five year s, the company h a s b een able to gr ow its sales with the m e n ’s dr iving these sales. Men’s Levi’s i s t h e m ar ket leader within the denim c a t e g or y. But within wom en’s jeans, VF C o rp o r ation’s var iety of br ands is still the m a rk e t leader with 9% shar e. The multitude o f b ra nds owned by this cor poration offers d i ff e re nt pr ice levels, as well as a bigger v a ri e t y of styles. It is seen that Levi’s is l o s i n g m ar ket shar e in a segment that grew 7 % i n value ter m s in 2013 (Euromonitor J e a n s 1) .

S WOT A n a lysis

O p p o r tu n itie s : A l t hough jeans consum ption has been slowing down, the denim p rem ium m ar ket accor ding to Euromonitor has been growing by 1 0 .3% in volum e ( Jeans 3). T his premium market allows brands to o ff er differ entiated pr oducts with more characteristics, to attract new c u stom er s that want unique products that fit their lifestyle.

There is also a perceived opportunity in the womenâ&#x20AC;&#x2122;s jeans market, which according to Euromonitor grew 4% in current value terms. This growth was driven by the comfort and the ability to be dressed up or down that jeans offer. This increase was mainly in the standard price category as women traded down to lower priced-jeans (Euromonitor Jeans 1).

Th e m illennial gener ation, which accounts for 80 million of the total U S A population is a generation in which technology and social media h a s becom e par t of their daily life. T his generation has been found to b e m or e thoughtful in their spending when it comes to non-essential i t e m s. These item s m ust be a reflection of their own lifestyle and a w a y of expr essing their uniqueness. T hese aspects have led them t o pr efer custom ized, high quality products and heuristic purchasing e x per iences ( Eur om onitor Lifestyles 12).

From 2013 to 2018, premium menâ&#x20AC;&#x2122;s jeans are expected to see the strongest growth. This is driven by the higher investment by men into fashion, looking for new fits and styles that match their lifestyle. It is trending for men to dress in a more formal way, so darker denim has increased in popularity. This type of jean offers them the versatility to use for formal and informal occasions (Euromonitor Jeans 1-3).

Mi l lenials r epr esent the largest purchasing power in U.S. and their c o nsum ption habits have driven the growth of new products, such a s those that ar e eco- fr ie ndly and made in the USA. T his generation i s awar e of the im por tance of sustainability and looks to switch to b rands that ar e eco- fr iendly and that have a higher purpose than just ma king pr ofits. Th e need for differ entiation among young adults has brought about the ma ker m ovem ent or DYI trend. T his movement as explained by Joan Vo i ght, is the um br ella term for independent inventors, designers a n d tinker er s. A conver g ence of computer hackers and traditional a rt isans, the niche is established enough to have its own magazine a n d fair s that br ing m ake rs together. Brands are now looking to the ma ker m ovem ent to pr om ote their brand identities and products with a hint of individuality. It is important for well-established brands t o look at this m ovem ent as an opportunity, because it is believed t h at per sonal m anufactur ing will upend mass-market manufacturing, l e ading to a new industr ial revolution (22-25).

Th r e a ts: During the last decade, the inventor of the blue jeans has struggled to remain relevant in the market. For about 120 years the company enjoyed its position as the jeans wear leader with 14% market share currently. But with the ushering in of the 21st century, an explosion of fashion denim came with it, and suddenly the market gave shoppers a wider range of high-end choices such as, 7 For A ll Mankind and True religion. Also, other low-end brands such as Lee and Wrangler started growing in popularity fragmenting the market even further (Fairchild 183). The jeans market is now highly competitive and many brands struggle for market share. Most of the brands compete within the lower price segment, which makes it very difficult for companies to differentiate themselves from others and still offer accessible prices. Many customers have traded down to lower priced brands, which is why the industry only grew 1% in current value terms in 2013 (Euromonitor Apparel 1).

S WOT A n a lysis To day m en, the lar gest wearer of jeans, are looking for other a l t er natives in or der to dress up. T his is why the industry only grew 3 % in volum e ter m s for m enâ&#x20AC;&#x2122;s jeans according to Euromonitor (Jeans 5 ). M en ar e becom ing m ore fashion sensitive, their tastes change f ro m one style to the other really quickly, and the industry is not re s ponding fast enough. T his is why they are looking for new brands a n d new com petitor s ar e entering into the denim market. A l t hough online shopping has been increasing, consumers have e x pr essed pr efer ence for traditional stores when buying premium a rt icles over online alternatives. When it comes to higher priced a rt icles, 58% of custom ers are reported to prefer department stores, t o 36% who pr efer Inter net retailers. Most consumers say they like t h e stor e exper ience and to be able to touch and feel the product w h en they ar e spending a larger amount of money. According to C i sco System s Inc., 65% of all US shoppers use the Internet to re s ear ch pr oducts but 90% of all non-grocery transaction in 2012 o c cur r ed in physical stor es (Euromonitor Lifestyles 56).

Co m pe tito r A n a lysis

Competi tor An aly si s C o mp e titiv e L a n d s c ape Th e pr em ium denim m ar ket consists of denim manufacturers whose j e ans r etail for appr oxim ately $130-$250 each. Premium denim can b e found in high- end department stores, both online and at brick a n d m or tar locations; specialty boutiques, namesake boutiques and s o l ely online r etailer s, such as MrPorter.com. In the United States t h e over all m enswear segment is projected to expand faster than the w o m en’s m ar ket, r ising 2.5% per year until 2018. “Economic growth w i l l encour age m ale shoppers to increase spending and a growing f o cus on fashion am ong men of all age groups is also expected to d ri ve gains.” ( M enswear in T he United States) Th e leading supplier s of apparel to the US market in 2013 include: V F Cor por ation and Levi Strauss & Company. VF Corporation owns 7 F or All M ankind, a competitor in the premium denim market. Levi S t rauss & Com pany is leading in market share in the United States b u t is str uggling to com pete in the men’s premium denim market, the f a stest gr owing segm ent within the men’s denim market. Th e denim m ar ket in the United States is highly fragmented with many p l ayer s, m aking it a buyers market. Consumers enjoy tremendous b u ying power in the apparel market due to limited brand loyalty a n d intense r ivalr y between suppliers. Competitors in the premium d e nim landscape r ely heavily on brand positioning and their unique s e l ling pr oposition ( USP) to capture market share amongst its target ma rket. Br and identity and messaging must be strong in order to re s onate with the consumer and translate into sales. Th e m ar ket for custom ized denim has been growing in the last few y e ar s, with the em er gence of brands like 3x1, DenMbar.com and Ma keyour ownjeans. These companies offer bespoke denim online a n d in- stor es at their fla gship locations in New York City and Los A n geles.

Th e Fo cu s: Country of Origin, Brand Authenticity, Fashion Trends, Craftsmanship/ Customization Each of the brands in the premium market has a special focus on one or more of these areas: country of origin, brand authenticity, fashion trends and/or craftsmanship/customization. Some brands focus on their geographical heritage, others focus on the innovation and creativity of the brand and others focus on fashion trends. Because the category is highly competitive, premium denim brands develop stories in their product assortment and marketing initiatives to differentiate themselves. Levi’s strength lies in its authenticity and heritage as a denim brand. It is one of the most recognized, if not the most recognizable denim brand in the world, especially in North America. The brand is thoroughly American; its image is one of rugged craftsmanship. It has, in recent years, repositioned itself as a fashion brand with the introduction of the “skinny” jean for men and has since offered more fashion forward assortments, including colored denim.

D i str i b u ti o n :

Each brand in the premium denim competitive landscape sells as wholesale and retail companies. They are widely distributed both online and in-store at luxury department stores, specialty stores and their brand-owned boutiques. The brands are often sold alongside each other in a store, therefore the company-owned online and brick and mortar space is where the brand is able to fully communicate its message.

Co m pe tito r A n a lysis Competitor 1

Ba ckg r o u n d Joe’s Jeans is a US-based company engaged in designing, developing and marketing apparel. The company markets denim jeans, related casual wear and accessories under the brand names, Joe’s and Hudson. It primarily operates in the US, where it is headquartered in Commerce, California and employs about 368 people. The brand distributes its products to more than 1,200 retail doors in the U.S. and abroad. It’s competitive advantage lies in its industry expertise in denim-wear and denim-related products, and i t’s one of the most recognized and sought after denim brands in the world.

Pr o d u ct Offe r i n g Under the Joe’s brand, the company offers women’s and men’s denim jeans, pants, shirts, sweaters, jackets and other apparel products. Under the Hudson brand, the company offers women’s, men’s and children’s denim jeans, pants, jackets and other bottoms. (Joe’s Jeans Inc.) The products are designed internally by the brand and sourced to specification from suppliers primarily located in the U.S., Mexico and Morocco. The company recorded $140.2 million in revenue for the fiscal year ended November 2013. This was an 18.2% increase over 2012. The company’s operating loss was $3.1 million in fiscal 2013, as compared to an operating profit of $10.7 million in 2012. Its net loss was $7.3 million in fiscal 2013, as compared to the net profit of $5.6 million in 2012.

Co m pe tito r A n a lysis

D i str i b u ti o n E x panding the m en’s wholesale distribution was a long-term goal f o r the com pany, as stated in its 2012 annual report. T here are six c l a ssic fits in the m en’s collection:

Joe’s operates through two business segments: wholesale and retail. The wholesale segment offers Joe’s and Hudson brand products to retailers, specialty stores and international distributors. The company’s retail segment is engaged in retailing of apparel products to consumers through a network of Joe’s retail stores and outlet stores. Joe’s jeans also retails apparel products online through Joe’s and Hudson retail Internet sites. There are 28 brick and mortar, company owned retail stores, one e-shop and two franchised locations. Joe’s has distribution in 25 countries and also developed an introductory pr ice point label exclusive to Macy’s (Else). Joe’s retail accounted for 20% of total revenue in 2013; Joe’s Intl. with 4%; Joe’s men’s wholesale with 18%; and Joe’s women’s wholesale with 51%. (Joe’s Investor Presentation) Finished goods are distributed directly to Joe’s customers from its distribution center in Los Angeles. Joe’s maintains third party showrooms in New York and Los Angeles to display and sell the brand to its retail buyers. Joe’s has implemented a denim replenishment program that has been integral to menswear revenue growth. It has, “Top Tier Distribution” to better department stores and specialty stores. The company’s retail customers include: Macy’s, Bloomingdales, Neiman Marcus, Nordstrom, Saks Fifth Avenue, Von Maur, Lord & Taylor, Dillards, and Belk stores; and around 1,000 specialty retailers, which include American Rag, Amazon, Piperlime, Revolve Clothing, Scoop NYC, and Shop Bop in the US.

Th e m en’s wholesale category is the fastest growing segment of b u siness— in 2012 it incr eased 32% over the prior year. Men’s nond e nim pr oduct offer ing is considered under-penetrated in the men’s w h olesale categor y as opposed to company-owned stores.

In its 2012 annual report, the company states its intent to expand distribution further over the next two years. In 2013 10 new companyowned stores opened and a long-term objective of opening 100 stores in the U.S. by 2017. Joe’s also intends to increase investment into the e-commerce site.

Co m pe tito r A n a lysis

Se r vi ce s Joe’s launched “My True Fit” technology in 2013 that allows the web visitor to enter their height, weight and build to determine what size and fit will be best for you. The questionnaire also requires that you enter a pair of denim you already wear and the size . It will then tell you the name of a Joe’s style that will work for you and you can con tinue shopping with this in mind. The brand also developed a mobile site and iphone app in 2012 and anticipates improvement across all e-commerce met rics (conversion rate, avg. transaction value, etc.) in 2013.

Pr o m o ti o n a l Ta cti cs Joe’s men’s line accounts for 48% of its annual revenue for 2012. Similar to the women’s line, Joe’s brands its fit styles to create differentiation. It understands that jeans aren’t a one-size-fits all and that its strength lies in its marketing of unique fits, styles, washes and fabrics. Historically, Joe’s advertising campaigns have been limited to strategic placement of advertising in areas of high concentration of fashion advertising through outdoor advertisements in Los Angeles and New York City. These include billboards in L.A. and space on tops of cabs in New York City. It also advertises in fashion magazines such as InStyle, Elle, Vogue, Teen Vogue, Harper ’s, GQ and Vanity Fair. In addition, Joe’s utilizes a public relations firm to strategically place its products in magazines, editorials, and with stylists. The brand also has an internal visual merchandiser who works with its retail stores and other customers to create the Joe’s presentation of products, in order to enhance sales (Joe’s Annual Report).

Co m pe tito r A n a lysis

B r a n d Po s itio n i ng Its top com petitor s include: True Religion, Seven for All M ankind, Citizens of Humanity and J Brand. Joe’s Jeans positions itself as the fashion forward, west coast brand. Its custom er is adventur ous, stylish and rebellious. It’s r epr esentative pr ice points are: • Denim : $158- $234 • Knit and woven tops: $50-$150 • Sweater s: $150- $250 • Outer wear : $250- $500 The com pany has licensed products in boys and girls apparel, wom en’s shoes and expects to add additional categories in the com ing year.

The br and social m edia precense:

73,513

9,200

1,281

32,000

Co m pe tito r A n a lysis Competitor 2

Ba ckg r o u n d Founded in 1989 and based in Amsterdam, the Neth erlands, G-Star Raw’s approach to denim has been to create “Just the Product” apparel. The company credits itself with bringing “luxury denim to the streets” and “positioning of raw, untreated denim as a wearable and desirable material.” The company is privately owned, so there is little financial information.

Pr o d u ct Offe r i n g The brand offers men’s and women’s apparel, shoes, accessories and collectibles. The brand is known for fusing “high-level craftsmanship with street level edge” to differentiate itself from its competitors. G-Star focuses on promoting the inherent beauty of denim by creating washes and treatments that bring out its unique cha racteristics and qualities. While the company offers other apparel to compliment its denim, it sees itself as a denim-oriented company primarily. The brand also offers very subtle branding in its products, contin ues to conduct research into new materials, styles, and cuts. Branding for the RAW Sustainable program shows an interest in reducing its carbon footprint and becoming a more sustainable brand.

Co m pe tito r A n a lysis

D i str i b u ti o n G-Star Raw is available at its brand name stores in Boston, New York, Houston, Los Angeles, Miami, San Diego, San Francisco and Chicago. The brand also sells wholesale to retailers such as, Neiman Marcus and Nordstrom. The price range for the brand’s jeans are from $150 to $250. The company operates through a network of international sales offices and stores in Europe, Asia, Australia and the United States; and through points of sale and retailers worldwide.

Se r vi ce s The brand offers free shipping on all orders, free returns and all of its products in its collection on the e-commerce store. It’s brandowned retail stores are minimalistic and gallery-like. Upon entering, customers are greeted by associates who can style the customer from head to toe. According to WGSN, “The conceptual, yet highly functional clutter-free approach to retail will give visitors a refreshing experience.” (G-Star Raw London Flagship)

Co m pe tito r A n a lysis

P r o mo tio n a l Ta c t i c s G- Star â&#x20AC;&#x2122;s br and identity exists through its type logo and signatur e stitching o n the back pockets of its denim. T he br andâ&#x20AC;&#x2122;s ad cam paign for 2014 consists of futuristic images of m odels wear ing the brand in action poses. T he imagery is lar gely color less and focuses on movement. T he ads appear on billboar ds and other out of home ad spaces and magazine ar ticle. The br and is known for its collaborations with musicians or other r elevant celebrities with edgy, urban style. Cur r ently, the br and is collaborating with musician, Pharrell W illiam s. This includes collaborated music videos and photo adver tisem ents used for both print and digital platforms.

B r a n d Po s itio n i ng The br and im age is edgy, creative and true to its European r oots. This fur ther s the brandsâ&#x20AC;&#x2122; creative point of view. G -Star RAW is often considered an urban fashion brand.

The br and social m edia precense:

2,151,188

69,600

3,085

44,000

Co m pe tito r A n a lysis Competitor 3

Ba ckg r o u n d Nudie Jeans is a competitor within the premium denim market. The company is founded on its desire to be sustainabl e. Nudie Jeans is a private Swedish clothing brand originating in Gothenburg and a subsidiary of Svenska Jeans AB. Nudie Jeans believes in treating its employees and suppliers with dignity. It does not “envisage a trade-off between profit and people, or between manufacture and environmental responsibility. These issues are major factors in [their] choice of suppliers.” (Responsible Production) The company does not own its factories but does have a strong relationship with its suppliers. Nudie “bears the responsibility to provide a safe, fair and ethical working environment for all the people who are involved in the manufacture of [their] clothes.” As a private company, Nudie Jeans is not required to disclose any financial or sustainability reports, but it believes in disclosing this information is important. Nudie supports Fair Wear Foundation, an independent, non-profit organization that strives to improve working conditions in the textile industry. Fair Wear Foundation verifies that its member companies implement a code of labor practice along with their supply chain and checks compliance by monitoring audits and remediation efforts. Nudie has been a member sin ce 2009. Nudie Jeans is also a member of Textile Exchange, a nonprofit organization that supports the farming and trading of organically grown cotton. The majority of organic denim used by the company is also certified by GOTS (Global Organic Textile Standard). This is the worldwide leader for textile processing standard for organic fibers, including ecological and social criteria, backed up by independent certification of the entire textile supply chain.

Co m pe tito r A n a lysis

Pr o d u c t Offe r in g N udie Jeans pr oduct offering is centered on what it calls, “dry denim” o r r aw denim . The website is laid out in such a way that it guides the c u stom er thr ough the product’s lifecycle, “break-in, repair, reuse, re cycle” and educates th em. T he brand positions itself as a brand of d enim that becom es unique to each user as they live out their story. The “ stor y” of Nudie Jeans is the story of its customers. T his is ex e c uted thr ough their use of videos and blog entries highlighting the d enim fr om its wear er s.

Di s tr ib u tio n The br and is distr ibuted at better department stores in the U.S., s u ch as: Saks Fifth Avenue, Barney’s, Neiman Marcus, Nordstrom a nd Bloom ingdales, as well as select specialty stores. In total, the b rand has 161 br ick and mortar distribution points in the U.S. and i t s e- com m er ce site.

Ser v ic e s The br and offer s r epair shops in G oteborg, Sweden; Stockholm, Sweden; Ber lin, Ger m an y; and London, United Kingdom. T he brand o ffer s fr ee r epair on all denim. It’s retail stores have knowledgeable a s sociates that act as stylists and denim experts. T he e-commerce s i te also offer s a fit guide page to help the customer determine w hich jeans will be the r ight fit for them.

Co m pe tito r A n a lysis

Pr o mo tio n a l Ta c ti c s The fall 2014 adver tisin g i m ages featur e the denim i s dar k, ur ban and pr oduct a dver tising, as well as out

campaign was called Dirty Realism. T he in hyper-realistic settings. T he aesthetic centered. T he company engages in digital of home advertising and print advertising.

Br a n d Po s itio n in g N udie Jeans positions itself as a craftsmanship-centered brand w i th exper tise in denim that is unparalleled. T he brandâ&#x20AC;&#x2122;s messaging i s heavy in pr oduct knowledge of the raw material, as well as the p rocess that denim goes through as the customer wears it. It also p ositions itself as an eco-conscious brand through its repair, reuse, re cycle and r esponsibility messaging. T he brand is true to its Swedish o rigins and Eur opean styling. I n 2012, Nudie becam e the first fully organic line of denim and in 2013 t h e fir st fully tr anspar ent brand. It publishes audits of its suppliersâ&#x20AC;&#x2122; w or king conditions and environmental standards.

Th e br and social m edia precense:

107,655

16,200

831

49,000

Co m pe tito r A n a lysis Competitor 4

Ba ckg r o u n d 7 For All Mankind was born in Los Angeles in 2000, it claims to be the first company to bring premium denim to scale, putting L.A. on the map as the fashion authority for the west coast staple. (Company Bio) The company is an international brand with more than 100 retail locations in North America, Europe, Asia and the Middle East. The brand is owned by VF CORP., an $11 billion apparel and footwear powerhouse. Revenue has risen steadily since 2009, from $7.2 billion in 2009 to $11.4 billion in 2013. A cash flow increase from $1.3 billion in 2012 to $1.5 billion in 2013 indicates that the company is strong. 7 For All Mankind is a part of the contemporary segment within VF Corp. and is targeted to reach $645 million in revenue by 2017.

Pr o d u ct Offe r i n g 7 For All Mankind offers men’s, women’s and children’s apparel, accessories and footwear. The men’s collection offers shirts and tees; pants and shorts; jackets and blazers; sweaters, footwear and accessories. There are nine fit styles for men’s jeans and each offers a myriad of washes and styles that change from season to season. The product offering is highly trend driven in comparison to other denim brands in the premium category.

Co m pe tito r A n a lysis This Califor nia- bor n lifestyle brand designs makes and markets p rem ium denim jeans, novelty bottoms, knit and woven tops, s weater s, jackets and a ccessories for discerning men and women w or ldwide.

Di s tr ib u tio n The br and sells thr ough its own brick and mortar stores and website, a s well as at luxur y department stores and high-end specialty bou t i ques ar ound the wor ld. T he brand is sold in more than 80 countries. M uch like the other pr emium denim brands, it sells through whole s a le and r etail accounts. 7 F or All Mankind retail stores in the U.S. a re located in New Yor k City, Beverly Hills, Chicago, San F rancisco, M i am i, Dallas, Las Vegas, among others. W holesale accounts include better to high-end department stores, s u ch as: Nor dstr om , Bloomingdales and Neiman Marcus.

Ser v ic e s The online fit guide pr ovides assistance is determining which jeans w i ll be the r ight fit for you. It is interactive, allowing the customer t o watch videos and r ollover informational bubbles to better under s t and what m easur em ents mean.

Co m pe tito r A n a lysis

Pr o mo tio n a l Ta c ti c s The br and adver tises in the out-of-home space in New York and Los Angeles, with billboar ds and signs atop taxis. 7 F or All Mankind a l so adver tises in selec ted magazines, including Glamour, Vogue, C osm opolitan, GQ, am o ng others. T heir social media presence is s h own below.

Br a n d Po s itio n in g The br and positions itself as a fashion brand. With supermodel c a m paign star, M ir anda Kerr, and a racy 2014 advertising campaign, t h e br and is edgy and young. T he brand is founded on its premium d enim but m oves with the trends each season to offer its customers 7 F or All M ankindâ&#x20AC;&#x2122;s take on the style.

Th e br and social m edia precense:

336,467

36,800

50,000

Co m pe tito r A n a lysis Competitor 5

Ba ckg r o u n d Established in 2003, Citizens has had a rigorous commitment to cuttingedge denim styling, comfort and fit without compromise. According to its website, founder, Jerome Dahan, was the first to bring designer denim to the global marketplace. It designs, markets and produces more than a million pairs of jeans annually in an internal laundry facility to ensure the product is paralleled. The company is privately owned and therefore doesn’t disclose its annual financial earnings.

Pr o d u ct Offe r i n g The price point for men’s denim is between $170 and $270 on average. Citizens of Humanity sells men’s and women’s denim, apparel and accessories. The apparel is manufactured in facilities that are either owned by Citizens of Humanity or are owned by third parties who operate in close proximity to the company. While it manufactures in California, it sources raw materials from other countries including China and Japan. (Men’s Fall 2014 Collection)

D i str i b u ti o n The company distributes to more than 1,300 retailers in more than 35 countries, including high-end specialty boutiques such as Curve, Fred Segal, Scoop, Madison and Anthropologie; online at Shopbop.com and MyTheresa.com as well as in luxury department stores Barneys New York, Bergdorf Goodman, Neiman Marcus and Bloomingdale’s.

Co m pe tito r A n a lysis

Ser v ic e s U nlike m any of the other premium denim brands, Citizens of Human i t y does not offer any on line fit guides.

Pr o mo tio n a l Ta c ti c s The br andâ&#x20AC;&#x2122;s 2014 advertising campaign is rugged and highlights i t s Califor nian r oots with western locations and California flag b ackdr ops. The br and advertises in outdoor advertising in big cities i n the U.S. and also in selected magazines.

Br a n d Po s itio n in g The br and positions itself as a western brand, true to its Californian ro ots. Br and im ager y is rustic, rugged and western inspired. T he s t yling is laid back and speaks to current trends. T he brand is tied t o its denim or igins but has moved into other apparel and accessory c a tegor ies to com plim ent its jeans. T he brand is trend-driven.

The br and social m edia precense:

21,175

5,232

2,374

38,000

Co m pe tito r A n a lysis Competitor 6

Ba ckg r o u n d OTB is the holding company for Diesel, as well as Maison Martin Margiela, Marni, Viktor&Rolf, Staff International, and Brave Kids. OTB describes its brands as being, â&#x20AC;&#x153;creative and iconic, unique and daring. Carrying [an] ambitious vision of the future, [its] brands not only change the way consumers see themselves but also the world around them.â&#x20AC;? (About OTB) OTB Groupâ&#x20AC;&#x2122;s mission is to build brands for a new breed of consumers, to enable development, challenge the rules and to foster creativity. Its attitude in everything it does is to innovate and think about how things could be done differently and this marks the Diesel brand.

Pr o d u ct Offe r i n g Diesel is an innovative international lifestyle company producing a wide-ranging collection of jeans, clothing and accessories. Created in 1978, the brand has experienced extraordinary growth and has evolved from being a pioneer in denim into the world of premium casual wear. The brand thrives on change: it produces no less than 3,000 new products every season and each one derives from a process of enormous creative freedom, ensuring constant innovation. The collections include Diesel, Diesel Black Gold (its contemporary line), 55DSL (a streetwear collection) and Diesel Kid.

Co m pe tito r A n a lysis D i esel is not just appar e l and denim, it’s a lifestyle, which has been i n ter pr eted thr ough licenses with leading companies to develop w atches and jewelr y, eyewear, fragrances, helmets, headphones, b i kes and a com plete ho me collection.

Di s tr ib u tio n D i esel is distr ibuted thr ough its company-owned stores and through w holesale accounts with better to high-end department and specialty s t or es. Diesel stor es ar e located in New York, Los Angeles, Santa M onica, Austin, Honolulu, Miami, Las Vegas, San F rancisco, Chi c a go, Washington D.C. and Denver. Wholesale accounts include: N eim an M ar cus, Nor dstr om and Bloomingdales.

Ser v ic e s The br and does not offer any online fit guides, like some of the other p rem ium br ands do. The Diesel retail locations will offer styling and f i t advice fr om the sales associates who are product experts.

Pr o mo tio n a l Ta c ti c s D i esel’s adver tising cam paigns are typically controversial and meant t o be attention gr abbing. T he “be stupid” campaign that has run for s e ver al year s highlights the brand’s core message; to do something e x tr aor dinar y and possibly a little rebellious. T his message speaks t o the young ur ban customer who is the target consumer for Diesel a nd can be ostr acizing to everyone else.

Co m pe tito r A n a lysis

Br a n d Po s itio n in g I t s cor e custom er is som eone who challenges traditional perceptions, p refer r ing to em br ace fashion on their own. T hey are extremely i n dependent and like to discover their own sense of fashion through a discover y pr ocess. Standing for, “only the brave,” even the name re flects the gr oup’s vision and values. T he target is a modern, u nconventional gr oup of savvy individuals who want to express their i d entity and lifestyle also, by what they wear. The br and positions itself as a true alternative to the luxury market. Accor ding to Pr esident Renzo Rosso, the brand stands for passion, i n dividuality and self- expression. Its intention is to inspire the y o ung and vibr ant gener ation toward creativity and adventure. When c o m par ed to other pr em ium brands, Diesel is speaking to a younger c o nsum er, while m aintaining a high price point. T he risqué advertising c a m paigns r esonate with the young consumer and communicate D i esel’s r ebellious attitu de.

Th e br and social m edia precense:

4,091,082

65,300

N/A

190,000

Co m pe tito r A n a lysis

C u r r e n t Cu s to miz e d D eni m O ff er i ng I n the last four year s, there has been an emergence of custom denim b rands. These br ands focus on providing a pair of jeans that are c u stom m ade to each consumer ’s measurements. T hese brands have o n line and in- stor e offer ings. Amy Leverton from WG SN says, “Some a re better than other s and some are darn right cheesy but the new D e n.m Bar that just open ed in Los Angeles’ Downtown L.A. Historic C o r e looks ver y pr om ising.” (Leverton)

Co m pe tito r A n a lysis Competitor 7

Ba ckg r o u n d Scott Morrison, former lead of designers at Paper Denim & Cloth and Earnest Sewn, founded the brand in 2011. He’s considered an expert in the industry having amassed a collection of more than 300 pairs, and his Mercer Street boutique in New York helps people create jeans that are as close to perfect as they can be. The 15 Mercer Street location is a 24-person factory with the largest collection of selvedge denim in the world.

Pr o d u ct Offe r i n g The brand offers men’s and women’s denim. It has a small offering of ready-to-wear denim available online and through specialty and high-end department stores, such as Barney’s, Shopbop.com and Bergdorf Goodman. The brand’s primary business is in custom denim. T he customer can walk into its store at 15 Mercer Street, choose a selvedge denim, get measured and have a customized pair of jeans designed for you. Morrison is directly involved in the process and offers consultation on what silhouette suits the customer best. The ready-to-wear line runs from $265 to $475, while the bespoke denim starts at $1,300.

Co m pe tito r A n a lysis

Pr o mo tio n a l Ta c ti c s The br and doesn’t par ticipate in much traditional advertising. T he b rand has a r elatively s mall following on social media and a loyal f o llowing of celebr ities who wear the brand. 3x1 relies on word of m outh fr om br and loyalists and market mavens to push the brand a nd talk about it within their circles of influence.

Br a n d Po s itio n in g The br and is positioned as a luxury brand. It is on-trend but not t rendy: the br and focuses on the craftsmanship of choosing the fabric a nd m aking the jeans. The brand competes in the luxury market, as o pposed to the pr em ium market. T he brand story is centered on its f o under who is considered an expert in his market and allows the c u stom er to m ake the jeans their own through customization. This ‘slow fashion’ concept is all about the process: picking the f a br ic, being m easur ed, waiting for the denim to be patterned, cut a nd constr ucted and then eventually reaching the customer. T he ‘ p rocess’ continues as the customer wears the raw denim and breaks i t in, m olding it to their body. T his relationship with the process is w hat m akes 3x1 unique.

Co m pe tito r A n a lysis Competitor 8

Ba ckg r o u n d Den.m Bar was founded in 2012 on the idea of bringing personalized, form fitting denim jeans using traditional artisan craft methods. Each pair of denim is cut and sewn by hand in its workshop in Los Angeles. All supplies are sourced locally, from sewing machine oil to poly 105 thread.

Pr o d u ct Offe r i n g The brand offers menâ&#x20AC;&#x2122;s and womenâ&#x20AC;&#x2122;s custom-made denim. There are three style options for men: tailored straight leg, tailored slim tapered and tailored skinny. The jeans are more affordable at $200 and arrive to the customer within 7 to 10 days. The customers measure themselves, following their measurement video guide, send those measurements in along with specifications online and then receive their custom denim in the mail. The customer can also visit the showroom in downtown L.A. to be fitted and pick out the fabric in person.

Co m pe tito r A n a lysis

Pr o mo tio n a l Ta c ti c s The br and has a sm all social media presence on Twitter, but has not u pdated its feed in six months. T he brand is found primarily through c o nducting a Google search for ‘customized denim online’.

Br a n d Po s itio n in g The br and positions itself as an affordable bespoke denim option. I t ’s her itage of “ M ade in A merica” is important to the brand as it says o n the website and is sh own on the tags of all the denim.

Co m pe tito r A n a lysis

Per c e p tu a l Ma p

Popular

Standard

Customization

Niche

T a r g e t Ma r k e t

Tar get Market Identi fi cati on Th e Mille n n ia l Ta r get C ons um er Th e M illennial gener ation includes people born between 1982 and 2 0 02. This gener ation differentiates from past generations in its needs a n d behavior s. The M illennials are self-expressive, achievemento ri ented, connected, open to change, multi-taskers, tech-savvy and p a ssionate about equality. T hey represent the largest purchasing p o wer in the U.S, expending $200 billon per year. F or this generation s h opping com es natur ally, since they have been involved in their p a rents pur chasing decisions (Lockwood). Th e M illennials ar e a tec h-savvy generation. According to a survey c o nducted by Ipsos M end olsohn, this generation spends an average o f 40 hour s a week on the Internet (Nickell). Technology and social me dia have becom e integrated into the Millennials’ lives; they use i t t o get dir ections, plan their agendas, maintain a social life and t h ese, in tur n, influence their shopping behavior. According to a N e tBase 2013 sur vey, 83% of the Millennials that are between 18 a n d 24- year s- old consult at least one social media platform before p u rchasing a fashion item.

Millennials have also evolved a trend that has existed for a long time: the “green” trend may not be new but the approach that Millennials have given to it is what differentiates it from the other generations’ approaches. For Millennials, sustainability is an important issue; they want to help the environment and the community but they are not willing to volunteer or make an effort to physically help. For Millennials, help means buying and supporting brands that are helping the community and environment. A survey conducted by Generate Insight states that 76% of Millennials emphasized the importance of brands being ecologically conscious (Gaudelli). They will change from one brand to another just because one brand is more sustainable. Millennials, like past generations have specific characteristics that define their behavior and determine how brands can approach them. They have high expectations about life and are demanding with brands and products. Since they are a hyper-connected generation they have access to a myriad of information at anytime, which allows them to remain informed. They represent the largest target market for companies at the moment.

B e sides the M illennials love for technology, they have a need f o r exclusivity. This characteristic has been present in different g e ner ations, but for M illennials, it means that they seek differentiation i n pr oducts, exper iences, and services, in all areas of their life. Th ey don’t want the sam e pants their friend has or to listen to the “m ainstr eam ” m usic ever yone is listening to because it is too popular a n d nor m al. The M illennial’s need for differentiation and exclusivity h a s opened the door for trends such as the DIY trend. A research b y Ypulse has shown that 22¨% of Millennials say that they often mo dify, cut up or em bellish their clothing. In the premium consumer t h e DYI is less popular but they ask for customized products that a l l ow them to differ entiate themselves from their friends.

T a r g e t Ma r k e t

Lev i’s Cu s to m Made & C r af t ed C os t um er P r of i l e D em ogr aphic * * * * *

A ge: 24- 35 G ender : M ale Mar ital status: Single, engaged or married Incom e: 75,000 – + ( It can come from the parents also) E ducation: Gr aduated

M i llennial consum er s are willing to spend more money than older c o nsum er s accor ding to thePew Research Center study: “Millennials: C onfident. Connected. Open to Change. T his target consumer is c o nfor m ed people that graduated from college and s working on a n established com pany or in its own company. T hey are educated p eople who com e fr om wealthy families or are working in recognized c o m panies with a good salary. T hey aren’t afraid of spending their m oney while it is in pr od ucts and brands they feel identified by.

D em ogr aphic * Countr y: U.S. The consum er tar get is U.S. Millennials between 24 and 35 years o l d. In the U.S. ther e ar e 11.8 million Millennials that have a bigger a nnual incom e than $100.000, which is fits our target (F aw, 2012). They live in the m etr opolitan areas of the U.S. like San F rancisco, Washington, Chicago, Dallas, Los Angeles, Houston and New York, a re the biggest concentr ations of our target (Carmichael, 2011).

T a r g e t Ma r k e t Psychogr aphic * Needs/M otivation: Exclusivity, Sustainability and High quality * Per sonality: Adventur ous, fashion forward, trendsetters, like trying n ew things, intelligent, informed * Lifestyle: Wealthy, social, entrepreneur, healthy and tech-savvy * S ocial Class: M iddle- Upper and Upper The new Levis line tar get consumers are the educated Americans that b elong to the M iddle- Upper and Upper class. T hey demand products o f high quality that ar e exclusive and will allow them to differentiate t h em selves fr om their fr iends and the rest of the people. T hey ask for b rands and pr oducts that are sustainable. T hey are informed; they a re constantly looking through brands and products all day through t h e Inter net, their fr iends and the media in general. T his allows them t o know what br and is doing what for the planet and society and h ow they differ entiate from other brands. F or these consumers is m or e im por tant what their friends say about a product than what the t raditional adver tising say. T hey are social, like being surrounded b y people but ar e also seeking for new experiences and adventures.

T a r g e t Ma r k e t

Per s o n a 1

Pe r so n a 2

* * * * * * * * * *

* * * * * * * * * * * *

Nam e: M athew Sm ith A ge: 27 E ducation: Califor nia College of the Arts Degr ee: Industr ial Design Nationality: Am er ican Incom e: $80.000 S tatus: Single Residence: Rented apt Media: Tech savvy Leisur e activities: Reading in his Kindle, going out with friends and r iding hiw bicycle * G oals: To continue gr owing in his career * Taste in appear ance: He appreciates quality, design, uniqueness and clothes that car e for the environment and society

Name: James Taylor Age: 33 Education: Cornell University Degree: Architecture Nationality: American Income: $130.000 Status: Married Residence: Apartment Media: update with latest technology Leisure activities: Exercising, Traveling and going to social events Goals: To continue working in his company so it grows Taste in appearance: He like innovative design, exclusivity, quality and sustainability.

P r imar y Res ear ch

Pr im a r y Re se a r ch

Res e a r c h Go a ls Af ter identifying the bus iness issue for Levi’s that we would like to a ddr ess, we discussed what primary research technique would best s e r ve us in identifying whether or not our solution is viable on the m ar ket. We wanted to understand more about our American millennial c u stom er and their online shopping habits, denim purchasing behavior a nd m edia consum ption. But even more importantly we wanted to a s k whether or not the r espondents are interested in a customization o ption.

Res e a r c h De s ig n After conducting preliminary secondary research through data mining, we determined it was necessary to gather primary research on our target. We needed to get the opinions of our target in as many U.S. cities as possible and talk to a large enough pool of people to determine whether or not our proposal is truly lucrative. This led us to developing a survey that would be disseminated online and allow us to talk to our target outside of Savannah, GA where we are conducting the research. We developed a survey that identifies whether or not the respondent falls within our target and then uncovers pertinent information about the target’s shopping habits, denim needs and media consumption. We had 40 respondents to the survey, making the results scientifically insignificant but for the purposes of our study we will use them as such. We found that our respondents confirmed that our initiative is viable, but gave us some insight to the obstacles, which we will need to overcome in the development of an integrated marketing communication plan. We determined that conducting secondary research first allowed us to understand the denim market, Levi’s and the customization phenomenon, so that would could better gather insights from our target.

An a l ysi s a n d Pr i m a r y C o n cl u si o n s We identified the following key insights: * Most male respondents don’t think it is easy to buy jeans, because of sizing issues * The majority of the respondents said they would like to customize their own pair of jeans in order to get the perfect fit and design details that match their style * The respondents that are not interested in customizing their own pair of jeans, because they think it would be too expensive, but these respondents do not qualify as our target *When looking for jeans, it was found that men still look for traditional styles and washes An important finding was that nearly all of our respondents owned a pair of Levi’s and often times wore premium brands in addition to Levi’s denim. Even those who did not own a pair of Levi’s were aware of the brand and could recall brand images such as, “American,” “heritage,” “denim,” and “quality.” All the words used to describe the brand when aske d, “What comes to mind when you think of Levi’s?” were positive. They included phrases such as durable, quality, the best, denim, America, cowboys and classic. This confirmed our secondary research that identified Levi’s as one of the most recognizable brands in the world and its authority as the inventor of denim.

Pr im a r y Re se a r ch

Pr im a r y Re se a r ch T he majority of our respondents fell within our 25 to 34, target age group, but some of those fell outside of our target because of their annual household income. Our data was skewed because we were unable to reach people who all fell into our ideal target.

Age Range

Media Consumption

The media consumption results were relatively expected. The millennial is very technologically savvy, and even more than that they understand how to their phones, tablets and computers to research style and trends. It was mildly surprising that magazines and other “traditional” media was still a source for inspiration.

This will mean that we need to communicate with our target on all of these platforms in a way that will cut through the noise. Utilizing several media vehicles that compliment each other will maximize our marketing efforts and we will need to think of innovative ways to talk to the consumer to minimize hesitation about buying customized products online.

Household Income

While menswear trends in suiting are gaining steam, for our target denim is still a part of their lives at least several times a week. This means that we are not trying to change our target’s overall wearing behavior, but rather just converting them to purchasing their premium denim from Levi’s rather than from our competitors.

How often the respondents shop online

How Often the Respondents Wear Jeans

As most of our r espondents already wear Levi’s traditional lines, it will i n v o l v e com m unicating the benefit that Levi’s Custom will offer.

While many of our respondents shop online, there are still many that don’t. It will be important to ease the uncertainty of buying online for those who are hesitant. But upon further analysis of our data, we see that those who fall within our millennial target are shopping online and are more comfortable with it than those who are older than our primary target.

Pr im a r y Re se a r ch If you had the opportunity to customize a pair of premium jeans online, would you be interested in taking advantage of this offering?

This number is encouraging for our Leviâ&#x20AC;&#x2122;s Custom initiative, as it tells us that there is a place in the market for this product offering. We found that those who were uninterested in this offering named price as the barrier, which would keep them from purchasing. Those who made this objection fall outside of our target market but value proposition will still be an important message for us to communicate going forward in order to overcome this hesitation.

M ar k et in g Str ategy

Po sitio n in g S tr a te g y

P osition i ng Strategy Pro d u c t L e vi’s Custom is a bespo ke men’s denim line offered online and ins t or e thr ough kiosks, that allows customers to customize a pair of j e ans with their choice of fabric, thread, components and custom fit o p tions. Ever y pair will in clude the traditional arcuate, or decorative d o uble stitching on the back pockets, and red tab. C u stom er s will be guided through the customization process with i n f or m ational videos abo ut measurements, the fabric choices and e x am ples of differ ent styles. A f t er thor ough r esear ch of our target customer needs, it is clear t h at the custom ization o ption will offer the perfect mix of fit and s m all details that m ake each piece unique. However, customization o p tions will be lim ited to the developments the brand already has i n or der to keep the pr oduct within the correct price range for the p rem ium m ar ket and to set the product apart from the custom tailored j e ans the br and alr eady offers that compete in the luxury market. C u stom er s will be able to mix all existing design options within a s i n gle pair with high quality raw denim in a perfect fit.

Waist Waist: Place the tape horizontally on the smallest part of the waist.

Seat

Sea t: Place the tape horizontally +/20cm below the waist. Make sure not to move the tape up and down.

Thigh

Thigh: Place the tape horizontally around the tight =/-5cm under the crotch. Inside Leg: Place the tape on the inside of the leg and measure from the crotch to the ankle.

B e for e star ting the pr ocess, customers will be encouraged to take t h eir own m easur em ents and with them take advantage of the broad f i t t ing offer that Levi’s Custom will provide. Fi rst, custom er s will choose the fit they would like for their jeans. F it o ff er s ar e based on the m easurements Levi’s currently uses for each s i z e ( Levi’s size char t) . Customers can first choose the size they u s e and the standar d m easures of that size will appear highlighted. Th en they can decide to leave it with the standard measurements or c h oose another m easur ement option that they think will improve the f i t of the jean for them .

Inside Leg

Po sitio n in g S tr a te g y

Po sitio n in g S tr a te g y B e sides choosing the correct measurements for their body type, c u stom er s can also choose the rise and how low they would like t h e cr otch to be. Thr oughout the entire process, pictures will be d e monstr ating what would the jean look like with each option. Th e following is the char t with the fit options:

LEVI’S SIZE

WAIST

SEAT

THIGH

LEVI’S BOOT LENGHT

LEG OPENING

RISE

CROTCH

FABRIC WEIGHT

12oz

13oz

14oz

15oz

16oz

DENIM COLOR

Blue

Dark Blue

Light Blue

Black

White

RIVET COLOR

Gold

White

Blue

Black

Red

LINING COLOR

Matching Denim Color

Red

Suspender Buttons

Leather on Pockets

Studs on Pockets

U-lock Storage Waistband

Reflective Tape for visibility

26 1/2” 27 1/2”

27 1/2 28 1/2”

28 1/2 29 1/2”

29 1/2 30 1/2”

30 1/2 31 1/2”

31 1/2 32 1/2”

32 1/2 33 3/4”

33 3/4 35 3/4”

35 3/4 37 3/4”

37 3/4 39 3/4”

39 3/4”41 3/4

34 35”

35 36”

36 37”

37 38”

38 39”

39 40”

40 41 1/4”

41 1/4 43 1/4”

43 1/4 45 1/4”

45 1/4 47 1/4”

47 1/4 49 1/4”

20 1/2 21”

21 21 1/2”

21 1/2 22”

22 22 1/2”

22 1/2 23”

23 23 1/2”

23 1/2 24”

24 25”

25 26”

26 27”

27 28”

Skinny 13.5”

Slim 15.75”

Straight 16.5”

Boot Cut 18.25”

Low

Mid

High

Normal

Dropped

ADDITIONAL

Grey

Kaki

Red

Finally customers will be able to put their initials or preferred let ters on the Levi’s Leather patch. Instead of having the traditional lot number, the patch, will have the three selected initials by the customer. The leather patch will look like this:

Relaxed 18.5”

A f t er choosing the per fect fit, customers will then be able to choose f ro m differ ent design options and can also add special details that w i l l m ake their jean unique and perfect for their lifestyle. Th e following is the char t with all of the design options offered:

Po sitio n in g S tr a te g y

Pr ic e P o in t

This will be the Levi’s product pyramid according to the positioning of Levi’s Custom in the premium market:

L evi’s Custom is a pr emium product launch that will retail between $ 165 and $250, depending on what options the customer chooses. Pr em ium denim is defined as being priced between $150 and $275. This unique pr ice point is flourishing compared to the luxury denim c a tegor y and the m ass- market category. This new pr oduct offer ing will be within the Made & Crafted line, which i s Levi’s pr em ium br and. T his Brand offers men’s jeans starting at $ 158 all the way to $250. Given that this is the customizable option t h e pr ice point will be higher than some of the brands’ products. The pr oduct will have a base of $165 and price will increase d epending on the options the customer chooses. Some options have n o incr ease in the pr ice but changes in the standard measures of s i zes and additional de tails will have an extra cost. T his is with t h e pur pose of cover ing the extra production and material costs the c o m pany m ay incur when making the customized product. The pr icing str ategy aims to cover high production costs of making s maller pr oduction batches that are made entirely in America. In o rder to contr ibute to the continual increase of the gross margin o f 48.7% of the com pany, Levi’s custom will take advantage of the “j ust in tim e” str ategy which has the advantage of not having to offer d i scounted sales for the product not sold, as products are only made t o or der ( Business W ir e).

Lot No 1 $750 to $900 Levi’s Vitange Clothing $205 to $275 CUSTOM Made & Crafted $158 to $250

Levi’s Red Tab CORE $58 to $100

Po sitio n in g S tr a te g y

Pl a c e me n t The collection will be offered online through the Levi’s Custom s e ction of the website and in-stores through kiosks. T he Levi’s C ustom website will pr ovide the customer with a platform in which t h ey can m ake and or der their customized jean. W ith the help of a well-developed placement, the initiative has t o over com e one of the biggest challenges it has, to provide the c u stom er with sufficient tools to be able to see the product as close t o r eality as possible to overcome all of his doubts. Placement must b e designed cr eatively in such a way that customers can complete t h e whole pr ocess without assistance and receive the exact product t h ey had envisioned. Ki osks will be available in Levi’s stores in the USA in cities such as: San Fr ancisco, Los Angeles, Chicago, Miami, Atlanta, Washington, N ew Yor k, Seattle, Denver and Huston. Kiosks will also be supported b y digital m ir r or s, which will reflect the customized jean after the c u stom er has com pleted the process with his desired design. When t h e custom er is in fr ont of the mirror he will be able to see himself w ear ing the jean and make sure it fits perfectly before ordering (Retail Innovation) . Tr ained personnel will also be available to p rovide guidance thr oughout this in-store process and make sure all c u stom er s’ needs ar e m et. W ithin the web site, multiple tools will be used to secure the u nder standing and pr ovide trust about how the final product will a rr ive. These tools will be used to show jeans as close to reality as p ossible. The idea is that the customer enters his measurements a nd a scale m annequin will appear reflecting the customer ’s m easur em ents. This will allow customers to see how the product w i ll look on them after changing fit and design options. T he web site w i ll also pr ovide r ecom mended fit options based on the customers m easur em ents.

Po sitio n in g S tr a te g y

Po sitio n in g S tr a te g y The online platfor m will be as clean and easy to use as possible, u s ing tabs with options. P ictures will also be provided for each detail. The custom er will be ab le to rotate the mannequin and see it from a l l angles. They can also change the design and fit details as many t i m es as they want until achieving the desired result. To access the c u stom ization featur e no account will be necessary, however before p roceeding to check out, customers will be encouraged to create an a c count to save their pr eferences for next time. Al though lots of technology is available for e-commerce it has also b een pr oven that the customer relies on simple features, such as c u stom er r eviews and r atings (Wang). T his is why a complete section w i ll be pr ovided wher e customers will be able to share their thoughts o n how the pr oduct ar r ived and give advice to other customers. A p hone line will also be available 24/7 in order to solve customers’ d oubts about the pr ocess.

Pr o mo tio n Pr om otion for the launch of Levi’s Custom will be a fully integrated m ar keting com m unication plan that includes advertising, public re lations, digital effor ts and direct advertising. Adver tising will include traditional magazine advertisements and o utdoor adver tising. Levi’s will run advertisements with GQ , Wired, D etails and M en’s Health magazines. Outdoor advertisements include p oster s and billboar ds in large market cities in the United States. ]

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Public relations efforts include garnering editorial coverage of the line in men’s fashion magazines both in print and online; social me dia; special events and celebrity placement. Digital advertising will include SEO, banner ads and Google ads. These will be crucial to drive traffic to the new Levi’s Custom section of the Levi’s website. Direct advertising will include special events designed specifically for the target market to raise awareness about the new initiative. These events also have the goal of increasing brand advocates, to celebrate the brand and create the most buzz possible about the new brand journey, Levi’s Custom. Given that Levi’s custom will be within the premium market, there will be no markdowns for this line other than providing free shipping from time to time. Special features will be added for a limited time to the design options celebrating holidays and special occasions. The main strategy is to create a promotion plan in which the brand will first try to reach the biggest portion of the population and then start reducing the scope until reaching the actual target market and possible consumers. Communication will raise br and awareness amongst the target as well as key influencers on the target. There will be synergy between all of the communication disciplines and the initiatives. This will help create a funnel and allow the brand to stand by the consumer while getting to know the new line, then learning how it works and finally becoming a loyal customer.

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O b je c tiv e s *C r eate awar eness of the new line. *Per suade the tar get to buy the new line. *Explain how the new line works. *C onnect Levi’s Custom to the heritage of the Levi’s brand.

C om m u ni c a t i on Mix

Co m m u n ica tio n Mix

Co m m u n ica tio n Obj e ctiv e s

Commun i cati on O bjet ives

For the fall 2015 launch of Levi’s Custom, we have created a communication mix that will fulfill our communication objectives and reach our ultimate goal of entering into the fast-growing premium denim market. We will discuss the synergy between the communication disciplines during each phase of our six-month launch schedule.

Pr e - l a u n ch M e a s u r e me n t: *G ar ner 85,500 visits on the website in the first month and increase b y 10% of each m onth during the first 6 months. *H ave a m inim um of 75,000 unique visitors each month. *H ave a bounce r ate of no more than 75%. (40% is consider normal) *At tain a conver sion r ate of 0.5% after launch. *L aunch the new Levi’s line in the third week of August. *H ave at least 15,000 attendants at the launch event concert of the n ew Levi’s line at the Levi’s stadium in San F rancisco. (Capacity = 65,000) *I n cr ease by engagem ent by 30% on F acebook, monthly. *G ar ner at least one fr ee press mention in a magazine each month.

Pre-launch will begin in the first week of August with social media, digital advertising, outdoor advertising, direct marketing and public relations efforts. Our initial messaging will be focused on hinting at something new arriving at Levi’s this fall; a teaser campaign. The social media campaign will take place through the currently existing Levi’s Facebook, Twitter and Instagram platforms. Levi’s currently posts once per day on average on Facebook, allowing us to have approximately one to two posts per week for the first month. Messaging focus on Facebook will be about generat ing anticipation for a new Levi’s concept that has now yet been revealed. We will also promote posts and advertisements for Facebook. Posts on Instagram and Twitter will support the same messaging and have the same imagery that the Facebook posts do for the teaser campaign. Digital advertising will compliment the social media strategy by continuing to reach our target on their computer, tablet or phone through advertisements on Facebook, GQ.com, WWD.com, select blogs and through Google advertising. This will reinforce the same message of a new journey beginning at Levi’s and build anticipation and excitement. These ads will drive traffic to the Levi’s Custom microsite, which will explain what it is and the launch date. Video advertisements on Youtube.com will be inspirational and be a visual advertising element that directs the custome r once again to the microsite. These videos will also be put on the Levi’s Youtube channel.

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Co m m u n ica tio n Mix

Co m m u n ica tio n Mix O utdoor adver tising includes ‘Posters,’ ‘Jr. Posters,’ and Wallscapes f rom Lam ar. ( Lam ar Advertising Company) Poster billboards bring t h e Levi’s Custom m essage to a local audience and impact our t a rget wher e they live, work and play. According to Lamar, “When y o u’r e launching a new product, making a name change or trying to g et a m essage our in the shortest amount of time possible, posters a re the way to go.” This is ideal for Levi’s Custom, as we want to c o m m unicate the launch of Levi’s Custom in the biggest markets in t h e U.S. that we ar e tar geting. T his will build on the social and digital s t rategies by r eaching our target in yet another way. Jr. Posters are l o cated m ainly in ur ban neighborhoods and, like the poster, targets a local audience, but is even more effective in reaching a niche a udience. This will be important as we determine what messages w i ll be com m unicated in particular neighborhoods. T his will also be b eneficial for adver tising our Levi’s concert that will happen in the l a st week of the August. Wallscapes ar e the m ost prominent of the outdoor advertising we h ave chosen. This will continue to reach our target as they commute t o and fr om wor k. The goal is to capture our target where they are. We will r each them on social media and digital advertising, then c a ptur e their attention as they ride the train or drive to work, thus i n cr easing the ‘Oppor tunity To See’ of the Levi’s Custom messaging. I n outr each to blogger s, magazine editors and tastemakers, Levi’s C ustom will send special ‘tool kit’s’ that announce the new Levi’s C ustom line. Included will be: a letter, denim swatches, a look b ook and an invitation to the Levi’s special event at the end of t h e m onth. They will be the first to know about the new line and t h is will gener ate editor ial content both online and in print that will s e r ve to com plim ent our digital and social strategy that is running s i multaneously. Blogger s and writers will receive the “whole story” w her eas the teaser cam paign will be taking place via all other digital e ffor ts, dr iving the tar get to seek out “What is Levi’s Custom?” N ews r eleases will be sent out to major publications and placed on n ewswir es, gener ating editorial content at the local and national l e vel. Gar ner ing fr ee press will be a primary effort of the Levi’s p ublic r elations team to maximize our messaging reach.

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L a u n ch : Se p te m b e r & Octo b e r This phase of the launch will include the same communication mix as the pre-launch period, but will add print ad vertisements in GQ, Details and Wired magazines. (See Appendix for reasoning) This compliments our efforts on other platforms. The target will be reached either on social media and move toward the microsite, or see a digital advertisement on their favorite blog or GQ.com and move to the microsite where they can make a purchase or explore the brand further. The outdoor advertisements reach the target and key influencers where they are throughout the day and continue to remind them about Levi’s Custom. The objective is to surround the target with Levi’s Custom messages wherever they are until they finally move to the microsite, or to the store to explore the Custom journey. During the month of October an Instagram contest will also be launched where the follower can design their own pair of Levi’s Custom jeans right there on Instagram and easily share with their own followers. The winner will be chosen at the end of the month and they will receive a free pair of Levi’s Custom jeans. This innovative process will begin on the Levi’s Instagram page and will move through each stage of customization via separate Instagram acco unts in order to move through the tags. The Instagram contest works with our other social media posts to stimulate conversation amongst the target and drive traffic to the microsite. This will also serve to generate newsworthy content for news releases and free press coverage. Outdoor advertising continues to generate brand awareness and compliment the other advertising strategies to increase the target’s opportunity to see.

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Co m m u n ica tio n Mix

Holid a y : No v e mb er, D ec em ber The com m unication m ix will remain the same during these two months b ut m essage focus will shift toward sharing and giving. During the m onth of Novem ber, Levi’s will partner with the Movember F oundation. The M ovem ber foundation is the leading global organization committed t o changing the face of men’s health. During the month of November, t h ey challenge m en to fo rgo shaving to spark conversation and raise v i tal funds for its m en’s health programs. T his partnership will be p ushed thr ough all social, digital and outdoor advertising platforms a nd news r eleases will be sent to media outlets highlighting this new p ar tner ship. ( “ M ovem ber United States”) The m essaging shift toward giving speaks to the values of Levi’s a nd of our tar get customer who prefers to shop with companies t h at ar e actively “ doing good.” T he Movember campaign will be c o m m unicated via social media, digital advertising, Youtube, and Jr. Poster s dur ing the m onth of November. T his message focus will shift t h e conver sation fr om br and focus to cause focus because “evidence s u ggests that linking a brand to worthy social outcomes delivers s t ronger business effects than telling them an engaging brand story.” (Field, 26) D ecem ber ’s m essage will shift again to the idea of sharing for the h oliday season. ‘Tis the season of giving and Levi’s Custom will g i ve custom er the opportunity to give a pair of Levi’s Custom jeans t o som eone they love with the gift option on the website and they w i ll also get the oppor tunity to give 5% of their proceeds to an o rganization. Ther e will be three to five options at the end of the o rder wher e the custom er is given the choice of what organization t h ey want their m oney to go toward. T his custom giving option c o ntinues to r einfor ce the idea of customization and also speaks t o the custom er ’s desir e to give or make purchases that support an o rganization they feel close to.

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The Custom Giving campaign will appear across all disciplines, each reinforcing the message. News releases about the campaign will be sent out to media outlets generating free press. All of these communication initiatives will drive traffic to the website and generate brand awareness. Reaching our target on many different platforms will keep Levi’s Custom at top-of-mind awareness.

N e w Ye a r In i ti a ti ve : Ja n u a r y Moving into the New Year, messaging will return its focus on the target and his journey. The message is that while you create your new year ’s resolutions, Levi’s Custom will be there “For your journey.” The communication mix will remain the same with a combination of social, digital, outdoor and print advertising combined with a public relations push for editorial coverage. The communication mix will continue to generate awareness of the new product line and drive sales. Print advertising for January will include advertisements in Men’s Health magazine, which has a high circulation rate in that month due to health and fitness-related New Year ’s resolutions. The social media strategy will continue to be executed through Levi’s currently existing social platforms to start conversations about Levi’s Custom and get customer feedback about the product. The social media strategy is complimented online by the digital advertising strategy that will also help drive sales to the Levi’s Custom microsite. This in turn will generate awareness and drive sales. As the customer explores this new customizat ion option, they will come closer to that point of purchase.

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Co m m u n ica tio n Mix

Con c lu s io n O ver all, the com m unication mix was chosen to create a fully i n tegr ated m ar keting communication plan that generates awareness a mongst the Leviâ&#x20AC;&#x2122;s Custom target. T he journey of exploration that t h e tar get goes on when discovering the Leviâ&#x20AC;&#x2122;s Custom brand is j u st as im por tant as the journey that the customer will be on while w ear ing and br eaking in the denim. T hese two are interrelated a nd our objective is to reach the target and key influencers with t h is m essage wher e they already gather: both online and in their c o m m unity. We want to communicate that we have a denim brand t h at will pr ovide them with style and comfort, but also that they can g i ve back to or ganizations that are important to them and take part i n the over all Levi and Strauss Company journey.

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Bu d g e t A llo ca tio n

Budget Allocati on Based on the dramatic increase in the budget for the Levi’s Brand and how the new Levi’s custom will increase popularity of its Made & Crafted men jeans. We think the budget for the new initiative that goes within the “live in Levi’s” campaign should be of $6 million for an IMC that will be carried for 6 months. This will allow us to reach as much population as possible and be in accordance with the new shift of the brand, which is to be broad reaching and democratic (Sey).

L evis Str auss & Co. offers a wide portfolio of products divided across f o ur br ands, Levi’s, Dockers, Signature by Levi’s Strauss & Co and D enizen. In 2013 the co mpany generated total revenue of $4,681.7 m illion and spent a total of $274 million in advertising and promotion w or ldwide ( Levi’s 21) .

O per ations in United States accounted for more than half of the t o tal wor ldwide r evenue with $ 2,497,756 (Levi’s 79). Levi’s brand p roducts r epr esented 84% of the total net sales in 2013, which is w hy the br and takes m ost of the marketing spent (Levi’s 2).

Accor ding to Katar m edia, the company reduced its spend in major m edia in the united States from $40 million in 2012 to $26.7 million i n 2013 ( Elliott) . However for 2014, the company made a major shift i n its m ar keting str ategy for the Levi’s Brand. In order to illustrate its d eter m ination to asser t its leadership in the denim market the brand l a unched its “ Live in Levi’s” campaign with a budget of $100 million e ar m ar ked for adver tising and promotion (WWD).

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- C har t s w her e t ak en f or m Lev i s A n n u a l R e p o r t p a g e 2 1 .

MEDIA

AUG

SEPT

EVENT

$1,600,000

TOOLKIT

$8,500

POSTERS

$1,000

WALLSCAPE BILLBOARDS

OCT

NOV

DIC

JAN

TOTAL $3,200,000

$8,500

$51,000 $2,000

$240,000

$960,000

GOOGLE ADS

$41,000

$30,000

$24,800

$36,000

$93,000

$12,400

$237,200

SEO

$5,000

$30,000

WEBSITE

$3,000

$1,000

$2,000

$1,500

SOCIAL MEDIA

$1,000

$2,000

$1,000

$7,000

SOCIAL MEDIA ADS

$17,600

$29,600

$24,800

$18,000

$62,000

$9,300

$161,300

YOUTUBE ADS

$31,000

$45,000

$31,000

$27,000

$46,500

$18,000

$198,500

$1,000

$1,600

$15,000

$400,000

$380,000

$2,376,100

$733,100

CONTEST VIDEOS CREATION

$15,000

MAGAZINE TOTAL

$1,723,100

$8,500

$2,600 $15,000

$15,000

$1,180,000

$400,000 $354,100

$872,500

$90,000

$69,200

$6,128,100

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M edia St r ateg y

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Pre s s Re le a s e : La unch: W ith the Levi’s in-house PR firm will create a press release f o r the launch of the new line and the concert events in San F rancisco, N e w Yor k, Chicago and Miami. One week prior to each concert the b a nd will announce the free concert on their social media accounts a n d Levi’s will also m ake the announcement on its social media a c counts. *M onth: August and September *Objective: Gar ner fr ee media coverage about the event and invite people to attend. *Cost: $0 *M easur em ent: The number of stories picked up by the media and the num ber of attendants to each event can also be attributed to the am ount of pr ess c overage. P ro duct knowledge pr ess release: After the launch, Levi’s Custom w a nts to teach custom er s how the site works and what the design p rocess is. This pr ess r elease will focus on what the Levi’s Custom l i n e is and how the website functions. *M onth: October *Objective: To educate the target about how the customization pr ocess wor ks. *Cost: $0 *Measur em ent: The number of stories that are picked up about the Levi’s Custom ization process. Monitoring of conversation on social m edia accounts to determine whether there is positive or negative sentim ent about the ease of the process.

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Me d ia S tr a te g y

Publ i c Relati ons Movember: Levi’s Custom will partner with the Movember Foundation during the month of November. The press release will focus on information about the campaign and the collaboration between Levi’s Custom and Movember. * Month: November * Objective: To inform about the Movember Founda tion cause and the collaboration between the two. * Cost: $0 * Measurement: The number of news stories picked up by media outlets. Holiday initiative press release: The press release will discuss the holiday sharing campaign and discuss how you can create a pair of customized jeans for someone and share 5% of proceeds to the charity of your choice from a list of pre-selected charities. * Month: December * Objective: To inform about how Levi’s Custom is allowing the customer to share this holiday season. * Cost: $0 * Measurement: The number of stories picked up by media outlets about the sharing initiative.

Fr e e Pr e ss: Launching: During August and September Levi’s in-house public relations team will focus on pushing the new line to garner free press coverage.

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Me d ia S tr a te g y

Me d ia S tr a te g y *M onth: August and September *Objective: To launch the new line and create buzz about it and how it wor ks. The m essage will focus on the launch of the new custom ization line. *Cost: $0 *M easur em ent: The number of stories that are picked up by news outlets dur ing these two months.

* Month: August and September * Objective: To launch the new line and generate b uzz and online conversations about the new line on social media. * Cost: $3,200,000. * Measurement: The number of posts on social media about the events from attendants, as well as the number of media outlets that pick up the news story.

Free M edia Cover age past lau n ch : All the initiatives will be pushed b y the public r elations team to garner media coverage. *M onth: October, November, December and January *Objective: To cr eate buzz about the new line and initiatives. *Cost: $0 *M easur em ent: The number of stories that are picked up by news outlets dur ing these two months.

Ev e n ts : La unch Concer t Tour : Levi’s will launch the new Levi’s Custom l i n e with a Phoenix concert at the Levi’s Stadium in San F rancisco f o l l owed by thr ee other smaller events in Chicago, Miami and New Yo rk City. Phoenix will perform at the largest event and three other s m aller bands will per for m in the other cities. T hey will be held on S a tur day after noons, with food and drinks sold to attendants. T he c o st of attendance is fr ee but those wearing Levi’s will gain VIP a c cess on a fir st com e, first served basis. *Locations and Dates: S an F rancisco 22rd of August (Levis Stadium ) , Chicago 29th of August (Millennium Park cost around), New Yor k Septem ber 5th (Bryan Park) and Miami 12th of Septem ber ( New Wor ld symphony concert hall)

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D i r e c t Ma r keting To o l Ki t: Launch Tool Kit: For the Levi’s Custom launch 10,000 tool kits will be available to send to bloggers, influencers and customers. Five thousand will be designated for pre-launch and the first month of launch. The tool kit will have a measuring tape, den im samples and a look book. * Month: August To January *Objective: To inspire tastemakers about the customization process and provide instructions for the design process. * Cost: $50,000 * Measurement: The media coverage from editors and bloggers about the tool kit; the number of customers that post about the tool kit on

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Posters:

Go o g l e Ad ve r ti se m e n ts:

Pre-launch Poster: Three weeks prior to launch Jr. Posters will be placed in San Francisco inviting people to go to the stadium for a special unveiling of the new journey that Levi’s has begun.

Pre-launch: From Aug. 1 to Aug. 23 the launch event will be advertised with banners through Google ads with a daily budget of $500.00 targeted to people in San Francisco.

*Month: August *Objective: To generate buzz and excitement about the Levi’s Custom line and the special event in conjunction with Levi’s. *Cost: $500 *Measurement: The number of attendants to the concert and an increase of awareness of the new line. Events Poster: Three weeks prior to each event 5,000 posters will be placed around each city inviting people to go to the event. *Month: August and September *Objective: To generate awareness about the event and increase the number of attendants *Cost: $1,500 *Measurement: The number of attendants at each event and the social media mentions about the event.

Wallscape Billboards: Launching Billboard: From August to December there will be three wallscape billboards in the eight largest cities in the United States. The communication objective is to generate awareness of the new line. *Month: August- December *Objective: To generate awareness about Levi’s Custom. *Cost: $10,000 monthly per wallscape board. Total of $240,000 monthly. *Measurement: Social media mentions throughout the five months and any free press generated about the billboards.

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O ut d oor A dv e rti si ng

* Month: August to September *Objective: To generate awareness about the new line, the special events and drive traffic to the microsite. The banner ad will allude to a special event and when the user clicks through to the Levi’s Custom site, the concert and details will be unveiled. * Cost: $11,000 * Measurement: The number of click-throughs to th e website and social shares of the event. Launch: From Aug. 24 until Sept. 30, the new line will be advertised with banner ads through Google, with a daily budget of $1,000.00. * Month: August to September * Objective: To generate awareness about the new Levis Line and generate traffic to the website. * Cost: $61,000 * Measurement: The amount of click-throughs to th e website and the e-commerce conversion rate. Product Knowledge Initiative: During October banner ads through Google will explain how the website works. This will be a video advertisement highlighting the process and design outcomes. The daily budget is of $800.00. * Month: August to September

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Me d ia S tr a te g y *Objective: To explain how the new line works and generate traffic to the website. *Cost: $24,800 *M easur em ent: The amount of click-throughs to the website and the e- com m er ce conversion rate. T here will be monitoring of the review section of the website as well to ensure ease of process. Movem ber Init iat ive: In November the new line will have two different b a nner s thr ough Google ads. T he first will talk about the new line a n d is intended to gener ate traffic; the second banner is about the Mo vem ber initiative. This will allow the brand to reach people that a re attr acted by the m ovement and users that don’t feel connected t o it. Each banner will have a budget of $600. *M onth: Novem ber * Objective: To cr eate awareness about the Movember initiative and dr ive tr affic to the website. *Cost: $36,000 *M easur em ent: The number of click-throughs to the website and the conver sion r ate. H oliday Shar ing Init iat ive: In December there will be two different b a nner adver tisem ents r unning simultaneously. One will be about g i v ing a pair of custom denim as a gift during the Holidays, as an act o f shar ing. The second banner will be about the charitable initiative o n the e- com m er ce site that allows the customer to donate part of t h e pr oceeds fr om their purchase to the charity of their choice. Each b a nner will have a budget of $1,500. *M onth: Decem ber *Objective: To gener ate buzz about the sharing initiative, create awar eness of the new line and generate traffic to the website. *Cost: $93,000 *M easur em ent: The number of click-throughs to the website and the num ber of social mentions about the initiative.

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New Year ’s Resolution Initiative: In January there will be three simultaneous banner campaigns about the New Year ’s resolution initiative. Each banner will have a budget of $400. * Month: January *Objective: To create brand awareness and generate traffic to the website and achieve a 60% click-through rate. * Cost: $12,400 * Measurement: The number of click-throughs to th e website and the conversion rate.

SEO: August To January: Levi’s Custom will pay for SEO during the entire six-month launch period. The monthly budget is $5,000. * Month: August To January * Objective: To generate traffic to the website. * Cost: $30,000 *Measurement: Where Levi’s Custom comes up on search engines and web traffic channels.

We b si te : Pre-Launch Microsite: From Aug. 1 to Aug. 22 there will be a microsite inviting people to pre-register for a tool kit about the new Levi’s line, “For your Journey” and an invitation to the Levi’s Stadium on the concert date wearing Levi’s to get the VIP experience of a lifetime. The first 4,000 people to register will get a Tool Kit about the new line.

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Me d ia S tr a te g y *M onth: August *Objective: To gener ate buzz about what Levi’s launch and what the event will be about and to create awareness about the new Levi’s Line and how it works. Achieve a bounce rate of 30 percent and an aver age pageview of 5, compared to 6.32 average pageviews for the Levi’s page currently. (“Competitive Intelligence” ) *Cost: $3,000 *M easur em ent: The number of people that register for the tool kit and how quickly the 4,000 tool kits are sent out. Monitor of social m edia m entions and sentiment prior to launch will also be a m easur em ent. E v ent s page: After the launch, the separate events page will show t h e schedule for the other concerts and who will be headlining them. I f t he initiative is a success Levi’s Custom will continue to sponsor c o ncer ts for lesser - known bands. Achieve an average daily time on t h e site of 4:00, com par ed to the overall site average time of 4:34. (“Com petitive Intelligence”) *M onth: August and September *Objective: To gener ate awareness of the new line and its launch events. Also, to gener ate media buzz about the events. *Cost: $1,000 *M easur em ent: The number of attendants at each concert, the am ount of social m entions and media coverage. I nst r uct ion Page: Ther e will be a page on the site that will h a ve instr uctions about how the customization process works, to a c com pany the custom er through the process. *M onth: Entir e life of the product line

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* Objective: To inform the customer about the process and help move them through each stage of customization. Achieve a bounce rate of 30 percent for this page. (“Competitive Intelligence”) * Cost: $1,000 * Measurement: The level of ease that the customers are experiencing as measured through customer feedback on the website and social media. Movember page: During the month of November, there will be a page on the site where the Movember contest is explained. It will show how much money has been raised for the movement. There will be a part of the site to show user-generated content with the Movember contest and show the weekly winners. * Month: November * Objective: To create brand awareness, drive traffic to the website and inform the customers about the Movember movement and raise money for the foundation. * Cost: $2,000 * Measurement: The number of men that participate in the contest, the number of social mentions regarding the initiative and the amount of money donated to the foundation through Levi’s Custom purchases.

Holliday Sharing Page: During the month of December, the website will have a new function; people will start by choosing if they are customizing the denim for themselves, a boyfriend, a friend, a father or a husband. Afterward they will design the jean, and at the end choose the package, write the card and choose from three different charities, to which one will receive $5 from the sale of that denim. Also, in this new design of the site they can see how much we have raised for each charity and what are they about.

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Me d ia S tr a te g y *M onth: Decem ber *Objective: To gener ate brand awareness, to drive traffic to the website and r em ind people about the Levi’s heritage and gift of shar ing. *Cost: $1,500 *M easur em ent: The number of gift jeans sold and the amount of money r aised for char ity.

So c ia l Me d ia :

S o cial M edia Platfor m s: F acebook, Instagram, Twitter, Snapchat, Tu mblr, Blog and Pinter est P re- Launch Social M edia: F rom Aug. 1 until Aug. 22 there will be p o sts on Levi’s cur r ent social media platforms to generate buzz a b out the new Levi’s line “F or your journey.” T he message will focus o n sending people to the microsite to find out more and inviting them t o the launch event concerts. *M onth: August *Objective: To gener ate buzz about the new line and the special events. *Cost: $0 *M easur em ent: Use of hashtags associated with the launch, as \ well as the num ber of click-throughs to the website. La unch Social M edia: Once the product line is fully launched, there w i l l be pr esence on the different Levi’s social media platforms about t h e new line and the launching events that are happening through d i ffer ent cities in the U.S. on a weekly basis. T here will be at least o n e post on each platfor m with a messaging focus on the new product o ff er ing.

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* Month: September * Objective: To create awareness about the new line and the launch events. * Cost: $0 * Measurement: The number of hashtags used, the sentiment of conversations and the amount of click-throughs to the website from the various social media platforms. Product Knowledge Social Media: During the month of October, Levi’s Custom line will post vides on the variou s social media platforms showing the customization process. This is a video that is found on the Levi’s Custom section of the website as well. * Month: October * Objective: To explain how the new line works, generate sales and drive traffic to the website. Achieve a bounce rate of 30%, average daily pageviews of 5, and an average daily time on the website of 4:00. These numbers were generated i n comparison to Levi’s current overall site statistics. (“Competitive Intelligence”) * Cost: $2,000 * Measurement: The amount of click-throughs to th e website and subsequent conversion rate.

Customization via Instagram Initiative: In the third week of September Levi’s Custom will launch an Instagram initiative that allows people to customize their jeans right on Instagram and then share it with their friends or buy it. This will be executed through the use of multiple related Levi’s accounts to guide the follower through the customization process and then allowing them to like and share their final result (see appendix for visual representation of this process).

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Me d ia S tr a te g y *M onth: Septem ber *Objective: To spar k conversation on the fastest growing social media platfor m . ( “ Fr ee Digital Planning Templates”) Generate 1,000 custom cr eations by our followers. *Cost: $5,000 *M easur em ent: The number of hashtags used by followers related to our initiative and the sentiment of conversation. Movem ber Social m edia: During the month of November, there will b e posts on the differ ent social media platforms about the Movember i n i t iative and the weekly winners of Movember contest. *M onth: Novem ber *Objective: To cr eate brand awareness and inform the customers about the M ovem ber movement in collaboration with Levi’s Custom and to associate Levi’s Custom with the mission of the Movem ber foundation. (See appendix for information about the Movem ber Foundation) *Cost: $0 *M easur em ent: The number of click-throughs to the website and the num ber of follower s that participate in the Movember contest. H olliday Shar ing social med ia: In December, the amount of money ra i sed for each char ity will be posted to each social media platform. *M onth: Decem ber *Objective: To cr eate brand website and r em ind people value of shar ing. *Cost: $0 *M easur em ent: The number conver sations taking place the cam paign.

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awareness, to generate traffic to the about the Levi’s heritage and it’s of click-throughs to the website and on the social media platforms about

New Years Resolution Initiative: For the month o f January there will be posts about the New Year ’s resolution message on each social media platform. * Month: January. * Objective: To create brand awareness, growth the engagement rate to 30% and generate traffic to the website. * Cost: $0 * Measurement: The click-through rate, number of hashtags used from the initiative and engagement rate.

So ci a l M e d i a : Pre Launch Social Media ads: From Aug. 1 to Aug. 22 there will be boosted posts about the event inviting people to visit the microsite and to attend an event at the Levi’s Stadium on Aug. 22 wearing their Levi’s. The Budget will be $800 daily. * Month: August *Objective: To generate buzz about the new line and have at least 15,000 attendants at the concert. * Cost: $17,600 * Measurement: The number of attendants at the concert and the number of hashtags for the event. Launch Social Media ads: From Aug. 1 until Oct. 31 there will be boosted posts about the Levi’s Custom line and the customization process. The budget is $800 daily. * Month: August to October * Objective: To generate buzz about the Levi’s Custom line, spark conversation and explain the customization process. Achieve a click-through rate of 60 percent and a conversion rate of .5 percent. * Cost: $54,400 * Measurement: The click-through rate and conversion rate.

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Me d ia S tr a te g y Movember Social media ads: During the month of November, posts will be boosted on each social platform about the Movember Initiative and also to promote the new website. The budget is $600 daily. *Month: November *Objective: To generate buzz about Levi’s Custom and create an association in the mind of the consumer between Levi’s Custom and the Movember Foundation. *Cost: $18,000 *Measurement: The number of click-throughs to the website. December social media ads: In the month of December, social media posts will be boosted about the sharing initiative and inviting people to the site. The budget is $2,000 daily. *Month: December *Objective: To generate buzz about the new line and to achieve a 60% click-through rate. *Cost: $62,000 *Measurement: The click-through rate to the website and the number of conversations on social media using the Levi’s Custom hashtag. New Years Resolution Initiative, Social Media ads: During the month of January, posts on social media will be boosted about the Levi’s Custom Line and the New Year initiative inviting people to the site. The budget is $300 daily. *Month: January *Objective: To generate buzz and spark conversations and sharing among followers on social media and achieve a 60% click-through rate. *Cost: $9,300 *Measurement: The click-through rate and number of shares on social media.

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Yo u tu b e : Youtube ads: During the six-month launch promotional and instructional videos will be posted on Youtube. There will be one video per initiative on the Levi’s Youtube channel. The d aily budget will vary per month: August $1,000, September $1,500, October $1000, November $900, December $1,500, January $600. The making of the videos will have a monthly budget of $15,000. * Month: October. *Objective: To create brand awareness and generate traffic to the website. * Cost: $198,000 * Measurement: The number of views on Youtube, the number of shares and the click-through traffic to the website from Youtube.

C o n te st: Instagram App: During the first two weeks of October, the Levi’s Custom Line will have a social media contest where people will be invited to create their own Levi’s Custom jeans and share it with their friends. The three images with the most likes at the end of the contest will receive the jeans they created as a prize. * Month: October. *Objective: To create brand awareness, generate engagement and inform the costumers about the Movember movement. * Cost: $1,000 * Measurement: The number of people that participate.

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Me d ia S tr a te g y Movember: During the month November the new line will run a contest on Instagram. The contest will be launched the last week of October and will start on Nov. 1. The contest will invite people to upload images on Instagram under the hashtags #LevisMovember and #LevisCustom. Each week the company will choose the two images from men with mustaches or beards that are the most original. They will win a pair of Levis Customized jeans. *Month: November *Month: November *Objective: To create brand awareness, generate engagement and inform the costumers about the Movember movement. *Cost: $1,600 *Measurement: The number of people that participate in the contest and the number of shares on Instagram and other social media platforms.

Pr int

GQ and Details October inserts: In October, Levi’s will put inserts in the magazine. The insert will be an envelope with a booklet with the explanation of how to use the new site to customize your jeans. * Month: October *Objective: To create awareness about new Levi’s Custom line, to generate traffic to the website and spark conversation about the new line through social media. * Cost: $350,000 * Measurement: The number of people that use the promo code on the booklet to purchase a pair of custom Levi’s an d the number of impressions the magazine achieved. GQ and Wired advertorial: For the December editions, Levi’s will have and advertorial in each of the magazine. * Month: December * Objective: To create awareness about new line, to generate traffic to the website and explain to customers how the new line works. * Cost: $350,000 * Measurement: The impressions the magazines achieved.

M a g a z in e : G Q Sept em ber cover : For the launch of the new line, the September c o ver of GQ will be cover ed in denim and have a full page advertorial t a l king about the new Levis line. *M onth: Septem ber *Objective: To cr eate awareness about new Levis custom line, to gener ate tr affic to the website and explain consumers how the new line wor ks. *Cost: $400,000 *M easur em ent: The number of magazines sold, the number of people that shar e an image of their Levi’s G Q magazine on social media and the num ber of media outlets that run a story on the initiative.

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A cti vi ty Map INITIATIVE Press Releases Events Free Press Direct Marketing Tool Kit Events Poster Wallscape Billboards Google Ads SEO Microsite For Initiatives Social Media Presence Social Media Ads Youtube Videos Social Media Contest Magazine Total:

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AUG SEP OCT NOV DEC JAN COST

$0 $3,200,000 $0 $51,000 $2,000 $960,000 $237,000 $30,000 $8,500 $7,000 $161,300 $198,000 $2,600 $1,180,000 $6,037,400

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The C r eat iv e I dea

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Pre s s Re le a s e :

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T he Br ie f

The Bri ef ss

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Co lla te r a l

Co lla te r a l 138

Co l l ateral

139

C amp aig n Ev al uation

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C o n c e p t Te s tin g :

Qu a n ti ta ti ve Ad ve r ti si n g Pr e - Te sti n g :

B e for e deter m ining our messaging strategy for the campaign, we c o nducted concept testing through primary and secondary research. We gather ed qualitative data on what our target associates Levi’s w i t h, in or der to deter m ine what type of message would be most well re c eived. We also looked at secondary research about the target c u stom er and their psychographic qualities to decide whether humor, h e ritage, functional, aspirational or inspirational messaging would b e m or e effective in the promotion of Levi’s Custom.

Prior to launch, it is imperative to test the ad with the target audience. This will be conducted with a large number of respondents as a final check, using the final version of the advertisements. Three types of metrics are used to assess the cognition, affect and conation of the target audience.

B e cause we do not have the resources to conduct scientifically s i g nificant pr im ar y r esearch, we conducted one-on-one interviews w i t h a couple of people within our target and determined that our t a rget is m ost dr awn to Levi’s heritage and looks for inspirational me ssaging that also conveys the product’s functionality in someway.

Pre limin a r y S u b je c t i v e E x ec ut i on: I n or der to deter m ine the execution of our creative ideas we n e eded to deter m ine what message is easiest to understand, which e x ecution will elicit the desired association, and which execution (a nd its m essage) is m ore persuasive. Levi’s Custom, ‘F or your J o ur ney,’ is succinct, allowing the receiver to more easily apprehend t h e m essage and r ecall it later. Th e idea of a ‘jour ney’ is also conveyed through each executional e l em ent. The chosen p ersuasive style for Levi’s Custom is a c o mbination of hedonistic and utilitarian motives through intensives y stem atic pr ocessing. In the premium denim market, the customer p u rchases based on aspirational desires for style and individuality, b u t also seeks a high level of quality. T his was reflected in our p ri mar y r esear ch with the target and secondary research on the p rem ium denim industr y.

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Ca m pa ig n E v a lu a tio n

Campai gn Ev al uati on

The print and outdoor advertisements the advertisements are placed in the publication or in the intended location as though it were a real advertisement to gauge interest, recall and affect (or intensity of feelings associated with the ad). Once all the data is collected, the advertisements will be edited and launched.

Po st- Te sti n g a n d C a m p a i g n Tr a cki n g : This IMC plan will be evaluated for success within each discipline that was utilized during the launch campaign: public relations, digital, social media, print and outdoor advertising. Public relations efforts for the launch campaign include the mini Phoenix tour concerts and press releases. The success of the Phoenix tour will be based on the number of attendants, the amount of social media mentions and the amount of press coverage on the event. Social media mentions will include the use of the Levi’s Custom hashtags: #LevisCustom, #ForYourJourney #Phoenix4Levis. The number of mentions will be tracked on Facebook, Twitter, Youtube and Instagram. The goal is to have these hashtags trending on the days in which the concerts are taking place.

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Ca m pa ig n E v a lu a tio n E d itor ial cover age m y news outlets (online, print and broadcast) will b e m easur ed by the num ber of stories that are run about the events a n d the launch of the new line. T his will take into consideration t h e r each of each m edia outlet when measuring the weight of that me ntion. P u blic r elations effor ts will be considered successful when Levi’s C u stom is gar ner ing at least three editorial mentions a month for the d u ration of the launch period in the United States. Press coverage mu st be m onitor ed continuously and press release messaging can b e adjusted to gener ate more interest in the new product offering a n d to position the m essage as more newsworthy. T his flexibility i n the public r elations strategy will allow the PR team to adjust to c u rr ent events and develop the timeliest messages. Th e digital cam paign includes online banner advertising and search e n gine optim ization. The success of the banner advertising campaign w i l l be m easur ed by the c lick-through rate and conversion rate. T his w i l l be continuously m easured and advertisements that garner a h i gher click thr ough r ate will replace those advertisements that have a l ower click thr ough r ate. T he benefit of the digital campaign is that t h e lead- tim e is shor t, allowing Levi’s Custom to adjust and replace a d ver tisem ents with ease, and measurements of the campaign are a v ailable on a daily basis. S o cial m edia evaluation for F acebook, Instagram, Twitter and Yo utube will also take place continuously throughout the duration of t h e cam paign. On each platform, reach, engagement, click throughs, a n d shar es will be m easured. T hese numbers will be benchmarked a g ainst pr evious Levi’s campaigns to determine whether or not is i t successful. Social m edia posts will be evaluated each week to d e ter m ine what m essages or content were most successful. F uture p o sts will be adjusted based on these results to maximize their reach a n d engagem ent levels.

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Print and outdoor advertisements will be evaluated using the Starch methodology. After the advertisements have run both in print and on billboards and Jr. posters, we will gather target customers in those target markets who have said they’ve read or been in the area where the billboard is located. We will measure the noted score, in other words, those who remembered seeing the specific ad. Then we will measure the associated score, or those who saw or read the brand or logo of the ad. These scores will be compiled and compared to scores from other brands with campaigns targeted at the same customer to measure the successfulness of the campaign. Another indicator of campaign success will be revenue. While this is not the only measure of success, especially for a new product launch, where emphasis lies in increasing brand awareness, it is an indicator as to the effectiveness of the advertisements. Because the primary sales channel is online, it will be relatively easy to measure where traffic to the site originated and the subsequent conversion rate. At the end of the year, market share will be an important metric to assess, as this was one of the business issues we hoped to solve by the launch of a premium product offering. Over t he next several years, the campaign and product launch will be considered successful if Levi’s is able to successfully recapture some of the market share it has lost in recent years.

R e ve n u e Pr o j e cti o n s: Based on the website traffic to Levi’s Custom and the expected conversion rate, we have calculated the projected revenue for the new line for the first six months.

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Ca m pa ig n E v a lu a tio n Fi rst, we looked at the current web traffic to Levi.com. F or Oct. 2014 t h er e wer e 583,180 visitors to the site, 37,080 of which were from a d ver tisem ents. ( “ Levi.com - SEMrush’s main report for domain”) B a sed on the tr end of Levi’s web traffic that was generated by a d ver tisem ents, we can e xpect approximately 7% of the traffic to the n e w m icr osite to be fr om advertisements. B a sed on the num ber of current visitors to Levi.com, we projected h o w m any of those we e xpect to visit the Levi’s Custom microsite t h at is on Levi.com . We estimate that Levi’s Custom will have 8 5 ,000 visitor s to the site for the first six months. With an expected c o nver sion r ate of 0.5% this will result in $4,320,000 in e-commerce s a l es for the fir st six m on ths. In-store sales through kiosks will total $ 2 ,265,938 based on Levi’s total store-owned revenue and projecting 1 % of that to be Levi’s Custom sales. (see appendix for web traffic)

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Cl osing R eco mmendati on s Th e pr im ar y business issue at hand is the decrease in market share t h at Levi’s has been experiencing in the last five years. With more d e nim br ands enter ing th e market each year, the industry becomes h i ghly fr agm ented, dr iving up the level of competition and decreasing ma rket shar e for Levi’s. Th e fastest gr owing denim segment is within the premium market but c u rr ently Levi’s doesn’t have a successful product offering at this p ri ce point. Levi’s Custom will take Levi’s into this premium market a n d allow it to capitalize on this highly profitable and fast growing b u siness. But not only does Levi’s Custom bring the company into t h e pr em ium m ar ket, but offers a product that is not currently offered b y any other br and. L e vi’s Custom speaks to the target millennial customer through its p rom otion but also in the product offering itself. T he target customer d e sir es to be unique, be stylish and to shop with a brand that supports t h e envir onm ent and other causes that they hold dear. Levi Strauss is c o mm itted to r educing its carbon footprint and developing innovative w a ys to m anufactur e its clothing to be more environmentally friendly. Th i s is the foundation up on which Levi’s Custom has the benefit of o p er ating and it pr ovides a clear vision for the brand.

Everyone is already embarking upon their own journey, Levi’s Custom inspires men to take a chance, embrace their uniqueness and create a signature style. They can finally get that ‘perfect fit,’ that, ‘live-in pair of denim.’ The journey doesn’t end with a purchase of Levi’s Custom jeans; this is only the beginning. The journey begins when he puts those jeans on and breaks them in while he’s commuting by bike to work, hanging out with friends, protesting for a cause, traveling the world, working and changing their community: the track is theirs to choose. Everyone has their own path; Levi’s Custom wants to go down that road with you, for your journey.

Th e m essaging str ategy for the campaign was developed through o u r secondar y and pr imary research on the target, the denim i n dustr y and our com petitors. T hrough this research, we identified t h at key m essages that resonate with our target are ones that are i n s pir ational, hopeful, speak to the heritage of Levi’s and show a c e rtain level of functionality. A n d so, Levi’s Custom , ‘F or your journey,’ was born. T he beauty o f this headline for the launch of Levi’s Custom campaign is that i t t r anslates acr oss all c hosen communication disciplines and can b e r e- im agined to develop different creatives. It allows the brand t o launch, build excitem ent, teach the customer how Levi’s Custom w o r ks, and gener ate sales.

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A p p en dix

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Lama r Ou td o o r Adv er t i s i ng:

Pr i n t Ad ve r ti si n g R e a so n i n g : GQ

Wired

Details

Men’s Health

Total Audience

6,588,000

3,200,000

2,042,000

1,800,000+

Male / Female

73% / 27%

78% / 22%

70% / 30%

Not Given

Median Age

33.8

Not Given

Median HHI

$73,439

$99,027

$92,004

Not Given

Any college

71%

55%

77%

Not Given

Affluent Audience

Not Given

967,000

Not Given

Affluent HHI

Not Given

$150,892

$213,309

Not Given

Source: Condenast.com, print media kits 2014

M o ve m b e r Fo u n d a ti o n : “The Movember Foundation is the leading global organization committed to changing the face of men’s health. The Movember community has raised $559 million to date and funded over 800 programs in 21 countries. This work is saving and improving the lives of men affected by prostate cancer, testicular cancer and mental health problems. The Movember Foundation challenges men to grow moustaches during Movember (formerly known as November), to spark conversation and raise vital funds for its men’s health programs. To date, 4 million moustaches have been grown worldwide, but we won’t stop growing as long as serious men’s health issues exist.

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A ppe n d ix Guys take action by shaving down their face on Movember 1, and growing a moustache for the month. They grow and groom their new Mo (slang for moustache), asking friends and family to donate to their efforts.

N e t R e ve n u e s fo r L e vi ’s: 2 0 1 3

Mo Bros, with their new moustaches, become walking, talking billboards, and like a run or walk for charity they use their hairy ribbon to spark conversations around the often ignored issue of men’s health and seek to raise funds to support the work of the Movember Foundation. Movember ’s not just for men. Women who support men’s health, known as Mo Sistas, are an important part of Movember ’s success. Mo Sistas register, start a team and fundraise – they do everything Mo Bros do, they just don’t grow a Mo. Mo Sistas are champions of Movember, rallying the men in their lives to join the movement, grow moustaches and have important conversations about men’s health. Since relatively humble beginnings back in 2003 in Australia, the Movember movement has grown to be a truly global one; inspiring support from over 4 million Mo Bros, Mo Sistas around the world.

- Levi Strauss, 2013 Annual Report

The Movember Foundation currently runs official campaigns in 21 countries, however, we’re aware of pockets of support in virtually every corner of the world, from Moscow to Rio de Janeiro and everywhere in between. Movember ’s success can largely be attributed to the strength of the global community; regardless of the city in which they live, they feel part of something bigger, united by a commitment to help change the face of men’s health. It’s about global mateship. The global expansion of the Movember campaign is not something that has been driven from within – it has been invited and encouraged. Our policy is only to enter a new market if there is an existing strong ground swell of support. Word of mouth, the movement of expats and the incredible power of the internet have all contributed to the campaign stretching out across the globe. The geographic expansion supports and delivers on our primary objective of spreading key health messages to men everywhere.

- Levi Strauss, 2013 Annual Report

The idea for Movember actually started with a conversation between mates, so there’s a nice synergy to the fact that today it’s conversation that is central to achieving our goals. That one conversation back in 2003 has today grown into billions, taking place around the world.” (“Movember United States”)

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- Sour c e : h ttp ://www.s em r us h. c om / i nf o/ l ev i . c om ?db=u s

- Source : h ttp ://www.s em r us h. c om / i nf o/ l ev i . c om ?db= u s

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