Levis Business Report

REPORT FOR THE MANUFACTURE OF LEVIS STRAUSS LADIES’ JEANS FOR EDGARS RETAIL STORES To Directors of Edgars, This report serves to provide information about Levis Strauss Jeans which we wish to sell through your retail stores, Edgars. Levis Strauss is a clothing line which has the potential to become very popular, especially once our new line of ladies’ jeans is introduced into the market. Target Market Although the target market for our Jeans is limited to women, the popularity and demand for Jeans is increasing by the day.The consumers would be able to wear Jeans in a casual manner with a shirt for their every day errands, and they would also be able to wear them slightly more dressed up with a blazer for work. Jeans are a piece of clothing that are worn by every class of people for almost every occasion and this would put us at an advantage in the current market. Previously, Jeans were thought to be only for workers, cowboys, etc. However, the consumer demand has shift ed from the durability of jeans to the fashion of jeans. Materials UsedThe materials needed to make the jeans would be denim, cotton, zips buttons, rivets and thread for embroidery of the brand name. These can be obtained with ease around South Africa which will lower our cost price as we will not need to import materials in order to produce the jeans. This will allow us to provide the jeans at a lower and more competitive price, therefore attracting more consumers to your stores. Possible Challenges and Strategies One of the challenges that we, as the manufacturers of the jeans, face is the threat of new entrants into the market and the threat of substitutes.Our generation consists of many young, innovative and enthusiastic designers who could possible introduce a new brand of denim jeans into the market. This could also tie in with the threat of substitutes as there are literally hundreds of lines that offer jeans as one of their products such as Guess, Sissy Boy, Free 2 b U, and RT to name but a few. In order to overcome this challenge we would need to ensure that our product has a high level of differentiation, meaning that it would need to stand out against the other brands of denim jeans.We could do this by using edgy advertisements. For example, women wearing nothing but the jeans themselves but with shadows covering the necessities such as breasts etc. This will attract women to the jeans as it implies that the jeans will give them sex appeal. We would also need to emphasise what makes our jeans different by showing their authenticity, originality, variety, quality, and their unique fit. Our jeans are also offered at a premium price and would be easily accessible to consumers as many people shop at Edgars stores.It could also be emphasised that our jeans are classic yet still modern and they can be worn for comfort as well as style. Table showing substitutes chosen if Levis Jeans were not available (Calculated on 120 respondents) Brand| Percentage of R espondents| Sissy Boy| 61%| Guess| 15%| Free 2 b u| 17%| RT| 7%| Levis Jeans can be considered as a style instead of just a fashion or a trend. A fashion and a trend grow slowly in the market but eventually the sales begin to decline.It is considered a style as, although jeans may not always be the most popular choice of clothing, they will always come back into fashion and have the potential to make a come-back in the market of the fashion industry. Another possible challenge would be that our brand could struggle internationally and this could affect its popularity locally. However, we have adopted the motto â€Å"think local and act global†. This ensures the potential consumer that the product is of good quality yet it can still be sold at a competitive and reasonable price.There have been some complaints of our jeans tearing in some places on Hello Peter, however, we have made an effort to strengthen our product physically by improving our production process and testing t he strength of certain garments in a batch to ensure that the products provided are of the highest quality possible Conclusion After careful market segmentation, efforts in improving the product and in-depth analysis of the market, we believe that our product would be a valuable addition to your range of products sold at your retail stores.With careful marketing strategies, innovative thinking and continuous attention given to the consumer needs, Levis Strauss could add to your store’s success. Please consider our proposal favourably. Regards, Kirsty Smit – Levis Strauss CEO References: * http://www. scribd. com/doc/31538621/Project-report-on-starting-a-new-business-Comfort-Jeans * http://www. madehow. com/Volume-1/Blue-Jeans. html * http://www. uvm. edu/~shali/Levi. pdf * http://www. cleanclothes. org/betterbargain/946-case-file-levi-strauss-a-co * http://en. wikipedia. org/wiki/Levi_Strauss All of the above websites were visited on the 4th of October 2012.