Levi's project

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Comparative analysis of study on customer buying preference & satisfaction

towards Levi’s Strauss

In partial fulfilment of marketing research course of PGDM programme.

Project guided by: Submitted by:

PROF: Kamal Gupta Group -5

(Associate Professor) Firoj Mohammad Shah (17)

Jyoti Smriti (18)

Aashutosh Giri (50)

Shubhangie Awasthie (62)

2012

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DECLARATION

We, Group-5(PG11-13) hereby declare that this project report is the record of authentic work

carried out by us and has not been submitted to any other university or institute for the award

of any degree/diploma etc.

Group-5

PGDM

2011-13

Date: 06/April/2012

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ACKNOWLEDGEMENT

Through this acknowledgment we express our sincere gratitude toward all those people who have helped us in the

preparation of this project which has been a learning experience.

Our sincere thanks to Prof. Kamal Gupta under whose able guidance and kind cooperation we are able to

complete the project work titled “customer buying preference & satisfaction towards Levi’s Strauss’’.

We sincerely thanks help provided by Inmantec business school, Ghaziabad which provided us the necessary

material for completion of this project.

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Table of Content

CHAPTER TITLE PAGE NO

NO.

CHAPTER 1 Introduction 8

CHAPTER 2 Objective 9

CHAPTER 3 Company Profile 10

CHAPTER 4 Levi’s Brands 11-17

CHAPTER 5 Levi’s portfolio analysis 18-20

CHAPTER 6 Major Competitors 21

CHAPTER 7 SWOT Analysis 22-23

CHAPTER 8 4P’s of Levi’s Strauss 24-29

CHAPTER 9 Research Methodology 30

CHAPTER 10 Research Design 31-32

CHAPTER 11 Sampling Design 33-34

CHAPTER 12 Data Collection 35-36

CHAPTER 13 Tools & Techniques 37-

CHAPTER 14 Data Analysis 38-45

CHAPTER 15 Hypothesis Testing 46-60

CHAPTER 16 Finding 61

CHAPTER 17 Limitation 62

CHAPTER 18 Conclusion 63

CHAPTER 19 Recommendation 64

CHAPTER 20 Annexure 65-67

Questionnaire

Bibliography

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List of table

TITLE PAGE NO.

Table 1.1 47

Table 1.2 48

Table1.3 49

Table1.4 50

Table1.5 51

Table 1.6 52

Table 1.7 53

Table 1.8 54

Table 1.9 55

Table 1.10 56

Table 1.11 57

Table 1.12 58

Table 1.13 59

Table 1.14 60

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List of graphs

TITLE PAGE NO.

Graph 1.1 40

Graph 1.2 41

Graph 1.3 42

Graph 1.4 43

Graph 1.5 44

Graph 1.6 45

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Executive Summary

The project was done to obtain the current level of satisfaction of Levis jeans users. So also, what are

their preferences in buying jeans? Both coupled yielded reasons for current level of satisfaction and

means to increase it. There was insufficient secondary data due to which primary data was collected. The project

was conducted within the geographical region of Opulent mall, Ghaziabad.

With a sample size of 200 respondents. The data collected was analysed with the help of

Statistical tools like frequency charts like bar and pie were used to analyse the data. The findings

analysed and based on the analysis conclusions were drawn and requisite recommendations were

provided. These included: 1) concentrating more on advertising 2) Increasing availability through local

outlets3) Reaching the economy segment etc.

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Introduction

Founded in 1853 by Bavarian immigrant Levi Strauss, Levi Strauss& Co. (LS&CO.) is one of the

world's largest brand-name apparel marketers with sales in more than 100 countries. There is no other company

with a comparable global presence in the jeans and casual pants markets. Their market-leading apparel

products are sold under the Levi's®, Dockers® and Levi Strauss Signature brands. In 1873, Levi Strauss and

Nevada tailor Jacob Davis pat ended the process of putting rivets in pants for strength, and the world’s

first jeans Levi's® jeans were born. Today, the Levi’s® trademark is one of the most recognized in the

world and is registered in more than 160 countries. Descendants of the family of Levi Strauss

privately hold the company. Shares of company stock are not publicly traded. Shares of Levi Strauss

Japan K.K.,the company's Japanese affiliate, are publicly traded in Japan. (For additional financial

information, visit our "News and Financial “section).The company employs a staff of

approximately 12,400people worldwide, including approximately 1,500 people at its

SanFrancisco, California headquarters. Levi Strauss & Co. is a worldwide corporation organized into three

geographic divisions: Levi Strauss, the Americas (LSA), based in the San Francisco headquarters Levi

Strauss Europe, Middle East, and Africa (LSEMA), based in Brussels Asia Pacific Division (APD),

based in Singapore.

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Objective

A Study on Customer Satisfaction & Brand Performance of Jeans Trouser Jeans trouser has been

innovated during 1950s for a coal mines worker by Denim. By looking over the popularity of

jeans trouser and changing trend in fashion made it essential to understand the factor which is

desirable to make customer satisfied. The objective of the study was to know the characteristic

and significance of Fashion & offer, generic requirement, efficient quality, Value for money,

services and maturity of person which may generate satisfaction in the customer’s mind. We

have conducted survey and used the data collected through respondents. Our sample size was

200 and our all respondent were from city of GHAZIABAD (U.P), India. We used suitable

multivariate technique to conclude the result of survey.

1) To analyse factors influencing consumers decision to buy branded jeans.

2) To analyse the factors influencing perception and buying decision of consumers.

3) Measure the level of satisfaction of the brand from its competitors.

4) To study and measure satisfaction level of Levis jeans users.

5) To suggest alternatives for enhancing customer satisfaction.

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Company Profile

Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions: Levi

Strauss Americas (LSA), based in the San Francisco headquarters; Levi Strauss Europe, Middle

East and Africa (LSEMA), based in Brussels; and Asia Pacific Division (APD), based in

Singapore. The company employs a staff of approximately 10,500 people worldwide. The core

Levi's was founded in 1873 in San Francisco, specializing in riveted denim jeans and different

lines of casual and street fashion.

From the early 1960s through the mid-1970s, Levi Strauss experienced explosive growth in its

business as the more casual look of the 1960s and 1970s ushered in the "blue jeans craze" and

served as a catalyst for the brand. Levi's, under the leadership of Walter Haas Jr., Peter Haas, Ed

Combs, and Mel Bacharach, expanded the firm's clothing line by adding new fashions and

models, including stone-washed jeans through the acquisition of Great Western Garment

Co.(GWG), a Canadian clothing manufacturer, and introducing Permanent Press trousers under

the Starkest name. The company experienced rapid expansion of its manufacturing capacity from

fewer than 16 plants to more than 63 plants in the United States from 1964 to 1974 and 25

overseas. Levi's' factory expansion was accomplished without a single unionized employee. The

use of "pay for performance" manufacturing at the sewing machine operator level up. As a result,

Levi's' plants were perhaps the highest performing, best organized and cleanest textile facilities

of their time. Levi's even piped in air conditioning for the comfort of Levi's workers into its press

plants, which were known in the industry to be notoriously hot.2004 saw a sharp decline of

GWG in the face of global outsourcing, so the company was closed and the Edmonton

manufacturing plant shut down.[4]

The Dockers brand, launched in 1986[5]

which is sold largely

through department store chains, helped the company grow through the mid-1990s, as denim

sales began to fade. Dockers were introduced into Europe in 1993. Levi Strauss attempted to sell

the Dockers division in 2004 to relieve part of the company's $2 billion outstanding debt.

Launched in 2003, Levi Strauss Signature features Jeanswear and casualwear. In November

2007, Levi's released a mobile phone in co-operation with ModeLabs. Many of the cosmetic

attributes are customizable at the point of purchase. During the launch of Levi's Curve ID jeans,

Levi launched a 5 week integrated marketing campaign.

http://en.wikipedia.org/wiki/Levi_Strauss_%26_Co.#cite_note-3

http://en.wikipedia.org/wiki/Dockers

http://en.wikipedia.org/wiki/Levi_Strauss_%26_Co.#cite_note-4

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Brands

The products of Levi Strauss & Co are sold under three brands:

1. Levi's®

Since their invention in 1873, Levi's® jeans have become one of the most

successful and widely recognized brands in the history of the apparel industry

2. Dockers®

Dockers® brand, which pioneered the movement toward business casual, has led the U.S.khaki

category since the brand's 1986 launch, and is now available in numerous countries.

3. Levi Strauss signature

In 2003 the launch of the Levi Strauss Signature™ brand, giving value consumers

high-quality and fashionable clothing from a company from which the customer trust.

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Values of Levi Strauss

Levi Strauss & Co. has four major core values. These are

- Empathy

-Originality

-Integrity

-Courage Levi Strauss & Co. says, “Their corporate values -- empathy, originality, integrity and

courage -- are the foundation of our company and corporate values -- empathy, originality,

integrity and courage -- are the foundation of our company and define who we are. They underlie

how they compete in the marketplace and how they behave. Define who they are. They underlie

how they compete in the marketplace and how they behave.

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Mission Statement

The mission of Levis Strauss & Co. is to sustain responsible commercial; success as a global

marketing company of branded apparel. They must balance goals of superior profitability

and return on investment, leadership market positions, and superior products and

services. They will conduct our business ethically and demonstrate leader ship in satisfying our

responsibilities to our communities and to society. Their work environment will be

safe and productive and characterized by fair treatment, teamwork, open communications,

personal accountability and opportunities for growth and development.

Aspiration statement

They want a company that make them proud of and committed to, where all

employees have an opportunity to contribute, learn, grow and advanced based on

merit, not politics or background. They want their people to feel respected, treated

fairly, listened to and involved. Above all, they want satisfaction from

accomplishments and friendships, balanced personal and professional lives, and to have fun in

our endeavours.

Vision statement

When LS & Co. describe the future of Levi they are talking about a building on the foundation

they have inherited: affirming best of their Company’s tradition, closing gaps that may exist

between principles and practices and updating some of their values to reflect contemporary.

Scanning the market environment

Like other successful companies, Levi’s also has realized that the marketing environment

presents a never-ending series of opportunities and threats. The major responsibility for

identifying significant changes in the macro environment falls to a company’s marketers. More

than any other group in the company, the marketing managers of Levis are the trend trackers and

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opportunity seekers. Many opportunities are found by identifying trends (directions or sequences

of events that have some momentum and durability) and mega trends (major social, economic,

political and technological changes that have long-lasting influence).Within the rapidly changing

global picture, the marketers of Levi’s are monitoring the following six major “Environmental

Forces”:

Demographic Environment

Economic Environment

Natural Environment

Technological Environment

Political-Legal Environment

Social-Cultural Environment

Market Segmentation Market

Segmentation

Market segmentation is the selection of groups of people who will be most receptive to a

product. The most frequent methods of segmenting include demographic variables such as age,

sex, race, income, occupation, education, house

old status, and geographic location; psychographic variables such as life-style, activities,

interests, and opinions; product use patterns; and product benefits. Much segmentation involves

combinations of these methods. No matter how segments are defined, however, they are

characterized by considerable change over time. The readings in this section exemplify areas of

rapid change.

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Basis of market segmentation basis of market segmentation

Demographic Segmentation

Geographic Segmentation

Psychographic Segmentation

Behavioural Segmentation

Target Market:

JEANS targets its market by evaluating the wants of customers. Mostly Levi’s targets its market

among the following classes:

Upper Class

Upper Middle Class

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Target Market Strategy

Target market strategy adopted by Levis is basically on having long-term relations with their

customers and to provide them with better product.

Benefits of Segmentation:

Levis has got customer oriented approach by segmentation. Company is promoting its products

effectively within segments by print media as well as electronic media, e.g. Newspapers,

Signboards, Television commercials, Internet, etc. Company is providing their customers with

stylish better quality and different product keeping in view its cost.

Conditions for effective segmentation

JEANS is fulfilling the conditions for effective segmentation.

Segments are strong enough to make profit. Segments of company are measurable

.

Limitation of Segmentation

Because of segmentation, Levi’s faces some limitations. Lack of awareness in middle class.

Company has to pay extra cost for multi-advertisement. In Pakistan they have to face several

Culture problems.

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Marketing mix

The marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives

in the target market. Marketing-mix decisions must be made for influencing the trade channels as

well as the final consumers. McCarthy classified these tools into four broad groups that he called

the four Ps of marketing: product, price, place and promotion. Note that the four Ps represent the

seller’s view of the marketing tools available for influencing buyers.

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Levi’s portfolio analysis

Levi’s corporate strategy involves a number of businesses, so managers can manage this

collection or portfolio of businesses by using a corporate portfolio matrix.

BCG Matrix

A strategy tool that guides resource allocation decisions on the basis of market share and growth rate of SBU’s.

Boston Consulting Group introduced the idea of BCG matrix that an organization’s businesses

could be evaluated and plotted using a 2*2 matrix to identify which ones offered high potential

and which ones were a drain on organizational resources.

Horizontal Axis

The horizontal axis represents market share which is evaluated as low or high.

Vertical Axis:

The vertical axis indicates anticipated market growth which is also evaluated as low or high

Categories

Based on its evaluation, the LS & CO.’s businesses are placed in the following:

Stars (High Growth, High Market Share)

“Stars include the businesses which are in a fast growing market and hold a dominant share of

that market.” Dockers® come under the head of stars as it is the major source of income for

thecompany.

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Cash cows (Low Growth, High Market Share)

Businesses in this category generate large amounts of cash, but their prospects for future growth

are limited.” The women apparels has got a low growth and high market share so it comes under

the Cash Cows head

Question marks (High Growth, Low Market Share)

These businesses are in an attractive industry but hold as mall market share percentage.

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Anoff’s Matrix

From the analysis, it is shown that in order to capture the sales objective LEVI’S must choose the

following growth strategies:

1. Introducing existing products in new markets

in order to extend the product life cycles of different product lines i.e. Russia, and central Europe. In order to do that

they have to identify the potential users and to seek correct distribution channels in that location in accordance with

other variables of the marketing mix.

2. Developing new products for the existing markets:

Such as development of big pockets for the CD players or the creation of new engineered jeans.

McKinsey’s

Matrix suggests that LEVI’S having relative medium market attractiveness (big potential market but at the same

time several competitors and low entry barriers) and high relative business strength’s based on the LEVI’S brand

and expertise, should invest and grow .According to McDonald, first, LEVI’S has to identify and exploit growth

segments as it is shown with Dockers. Second, it has to emphasize product quality in order to avoid “commodity”

competition. And finally, it has to systematically improve productivity and profitability by situating the production

facilities in the most cost efficient place. Invest heavily in the most attractive markets.

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Major Competitors

They are much proud to say with surety that their products completely satisfy their consumers.

That’s why they don’t face much competition in their business. But yet there are some

competitors.

Pepe Jeans

Leeds (US Apparels)

Gaap Jeans

Cambridge

Their prices are not influenced by the competitors.

Such a stuff, design and fashion which don’t have the enough sales are recall back to the

company. Again company issues this stuff to their own outlets for sale at discount prices.

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SWOT Analysis

Strengths

Levi’s enjoys high brand equity. People all around the world recognize the brand name.

Levi’s products are unique and innovative in the style.

A lot of variety is offered by Levi’s ranging from sunglasses to skirts and shirts.

The products are renowned and are considered as the most durable i.e. the long lasting products.

Levi’s follows a high standard of quality

.

Weakness

Levi’s products are considered as very expensive. Therefore a large percentage of people are

reluctant tobuy the products.

As no discounts are present and products are sold at fixed prices many customers are lost.

Levi’s does not provide any services like free delivery etc

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Opportunities

Levi’s can do more well in the women section. This section is give less importance as compared

to the men section.

The kid’s section, which has been started from few years, should also be given proper attention

to gain customers.

Sales promotion can be increased by increasing the advertisements expenses so as to enjoy a

large number of customers.

Threats

Likely entry of new competitors.

Rising sales of substitute products.

Slower market growth.

Adverse government pressures.

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4P’s of Levi’s Strauss

Price

It can be simply defined as: “The currency value charged to a Client by the company for a

product or service”. Is one of the most important elements of the marketing mix, as it is the only

mix, which generates a turnover for the organization? The remaining 3p's are the variable cost

for the organization. It costs to produce and design a product, it costs to distribute a product and

costs to promote it.

List Price:

Their all products are sold at listed price, which are settled by the LevisCompany (Singapore).

There is no discount to offer

.Credit Sales:

They also deal with credit sales, but we don’t overcharges to the customers, we pay it our self to

the bank (3 %). Products are only sold for cash or on credit cards

Discount:

They don’t give the discount to our customers even to the employees of the Levis. Their prices

are fixed.

Payment Period & Credit Terms:

Payment Period & Credit Terms are settled by the company.

Price Determination:

During the determination of the price company not considered the competitors, but the standard

that is used is considered .Their price is influenced by the following factors:-

Cost of the product

Afford

ble for the target market

Demand of the product Uniqueness and innovative features of the products.

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Product

Red tab jeans offers traditional cuts

Silver Tab jeans define fashion looks with a background of quality

Levi’s jeans expanded its fashion designs not only in men and women apparels, but also in kids

wear.

Place

Vast distribution channels spread all over the world

In Asia it has the brand distribution in the countries like China, Guam, India & Japan

In India, its products are distributed by Mayur marketing, which is headquartered at New Delhi.

Promotion

Aggressive campaigns

Launch and promotions are coordinated with licenses in various countries

Advertisements through mass media such as print and electronic transmission bell

boards and on the internet are some of LEVI’S way of raising brand awareness

among the consumers.

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Mode of sourcing

Levis works with direct sourcing in INDIA

LEVIS signs a contract with all the supply chain suppliers with a major focus on sustainability

and eco-friendly goods.

Cotton, Fabric, Product Suppliers, Distribution, Retail.

Supply chain

FIBRE-More than 95% of all Levi’s® products are made with cotton grown in the U.S., China,

India, Pakistan, Turkey or one of the many other countries where cotton is farmed.

FABRIC-Once the cotton leaves the fields, it is spun and made into fabric by mills around the

world.

LEVIS generally do not purchase fabric directly from the mills, but takes important steps toward

partnering with them in their drive toward sustainability.

. Product suppliers

LEVIS is committed to Responsible Global Sourcing.

LEVIS contract production from manufacturing suppliers that cut, sew, finish and wash our

products.

Hence they build sustainability directly into the contracts.

Distribution

Once the garments are ready for ship ment , LEVIS distributes them through their own logistics

department

The INDC is generally the head office at US.

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Suppliers from India

Alpine Apparels Pvt Ltd – Bangalore

Ambattur Clothing Company - Chennai

Aviram Knitters – Tirupur

GO International – Tirupur

BEST Garments – Tirupur

Bombay Rayon – Bomba

Casual garments – Tirupur

EXIM Clothing –Tirupur

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Trademarks

Levis has more than 5,000 trademark registrations and pending applications in approximately

180 countries The Levi’s, Dockers, the Arcuate Stitching Design, the Tab Device, the Two

Horse» Design and the Wings and Anchor being the core of all.

.

Eco-Friendly

Levi’s® brand launches 100% organic cotton jeans. Red Tab and, the recently launched,

Levis Capital E lines. The jeans will be identified as Levis.

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Problem Statement

i) Are Levis jeans users satisfied with what the company is offering?

ii) What measures need to be adopted to increase their current level of satisfaction

towards Levis jeans?

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Research Methodology

In this review of available information about a brand, the primary objective is to generate hypothesis concerning

the key ‘assets’ of the brand that are likely to mediate its equity. These hypotheses will help guide and frame the

measures of brand equity that should be used in any research that is conducted. Also, depending upon the brand’s

marketing strategy; a researcher may also want to consider the information under review in light of other

potentially related issues, for example: possible line or brand extension. Up to this point the discussion has cantered

on those things it is necessary to understand before actually measuring brand equity. Now it is time to choose

appropriate measures about customer satisfaction and preferences.. First, a number of techniques should be used to

gain an understanding of its nature.

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Research design

Research Design specifies the methods and procedures for conducting a particular study. A

Research Design is the arrangement of conditions for collection and analysis of the data in a

manner that aims to combine relevance to the research purpose with economy in procedure.

Research Design is broadly classified into three types as

Exploratory Research Design

Descriptive Research Design

Hypothesis testing Research Design

On the basis of the objective of study, the studies which are concerned with describing the

character tics of a particular individual, or of a group of individual under study comes under

Descriptive Research Design.

Descriptive Research Design: In this research design the objective of study is clearly

defined and has accurate method of measurement with a clear cut definition of population which

is to be studied.

A research design is purely and simply the focus of the study in on studying the banner

advertising is conclusive in nature that guides to the collection and analysis of data. The

descriptive research design has been used in this project, because consumer’s feedback was

necessary for obtaining the data.

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Formulating the research problem

Two steps are involved in formulating the research problem:

Understanding the problem

Rephrasing the problem into meaningful terms from an analytical point of view

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Sampling design

A Sample Design is a definite plan for obtaining a sample from a given population. It refers t the

technique r the procedure adopted in selecting items for the sample. The main constitution of the

sampling design is as below-

Sampling Unit

Sample Size

Sampling Procedure

Sampling unit

A sampling framework i.e. developed for the target population that will be sampled i.e. who is to

be surveyed

Retailers, Customers, Working people, school students, unemployed and housewives i.e.

males and females irrespective of their education level.

Sample size

It is the substantial portion of the target population that is sampled to achieve reliable

results.200------- respondents.

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Sampling procedure

The procedure to choose the respondents to obtain a representative sample, a non-probability

sampling technique is applied for the target – market.

Non-Probability Sampling

It is a purposive sampling which deliberately chooses the particular units of the universe for

constituting a sample on the basis that the small mass that they so select out of a huge one will be

typical or representative of the whole.

The sampling used for this study was probability sampling. Since the study is only meant for

certain specific categories within the total population, a stratified random sample was used.

Three groups of categories have been taken into account viz. students professionals and general

public. Random Sampling (fill up the questionnaire)

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Data collection

Primary data

The primary data are those data, which are collected afresh and for the first time. And happen to

be original in character. The primary data to be collected for the study are-

Questionnaire –.A set of questionnaire is prepared for the cause of collecting different

information related to the pre-determined objectives

Secondary data

Secondary data was obtained from journals, magazines newspapers, books and the internet.

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Research instrument

For doing the survey research, structured questionnaire with both open ended and close ended

questions were used.

Place of study

The study and survey is done in national capital region only.

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Tools and Techniques

Simple statistical tools and techniques like average, frequency, ratios, tables and graphs, chi

square tests, correlation were used.

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Data analysis

Descriptive Data analysis

S. No Subject Option Quantity

1 Gender Male 145

Female 55

2 Age group 18-25 64

26-35 87

36-45 40

Above 45 9

3 Occupation Service 42

Business 35

Self-employed 44

Student 57

Homemaker 18

Retired 4

4 Education Up to 10+2 29

Graduate/Diploma 104

post Graduate 67

5 Annual Family Income 200000-400000 43

400001-800000 62

800001-1000000 75

Above 1000000 20

6 Preferable Brand Levi's 86

Numero Uno 44

Woodland 43

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Tommy Hillfigure 27

Others 0

The data from our survey has been given above.

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Analysis of customer Gender

Fig 1.1

In the above chart we found out of 200 respondent 72% are male and 28% are female who use

branded jeans. We can interpret that males are more brand conscious as compare to females.

Male 72%

Female 28%

Chart Title

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Analysis of customer Age group

Fig 1.2

In the above chart the customer whose age is between18-25,percentage is 39%.The customer

whose age is between 26-35, percentage is 36%.The customer whose age is between 36-

45,percentage is 15%.And the customer whose age is above 45, percentage is 10%.We can say

that youngsters are more brand conscious than other age group people.

18-25 39%

26-35 36%

36-45 15%

Above 45 10%

Age Group

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Diagram Analysis of customer Occupation.

Fig 1.3

In the above graph we have found that out of 200 respondent, 42 respondent are service

person,35 respondent are Businessman, 44 respondent have a self-employed, 57 respondent

have a student , 18 respondent have a homemaker and 4 respondents have a retired.

So, here we can analysis that most of the customers have student.

0

10

20

30

40

50

60

42 35

44

57

18

4

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Customer Income Group

Fig 1.4

In the above graph we found out of 200 respondent, 43 whose average annual family income is

200000-400000, 62 person whose annual family income 400001-800000, and 75 respondents

are in 800001-1000000, 20 person are in above 1000000.

0

20

40

60

80

200000-400000400001-800000

800001-1000000

Above 1000000

43 62 75

20

44

Diagram of Customer Preference

Fig 1.5

From your survey we found that out of 200 Respondents 86 Respondents has chosen

Levi’s brand, 44 Respondents are goes for Numero Uno brand, 43 Respondents prefer the

Woodland brand, only 27 Respondents has chosen the Tommy Hill figure brand.

So here we can analysis that most of the customer prefer Levi’s brand for its brand value,

Style & price.

43%

22%

21%

14%

Customer Preference

Levi's Numero Uno Woodland Tommy Hillfigure

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Diagram which analysis customer satisfaction

Fig 1.6

Here in the diagram we try to compare Levi’s brand with Levi’s top three competitors. We try to

find out here the customer satisfaction level of the different brand user. We found that molar less

Woodland and Numero Uno brand use are quite satisfied but above on this the Levi’s brand user

most satisfied.

1 2

21

87 89

2

19

62 76

41

3 11

59 69

58

3

21

57 51

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Hypotheses Testing

List of hypotheses

H1: Age has a significant impact on customer choice of brand

H2: Occupation of a customer has a significant impact on customer choice of jeans brand.

H3: Income of a customer has a significant impact on customer choice of brand of jeans.

H4: Price of jeans has a significant impact on customer choice brand of jeans.

H5: Price of jeans has a impact on customer perception about the quality of brand of jeans they

are using.

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H1: Age has a significant impact on customer choice of brand

Table 1.1

N Mean Std. Deviation Std. Error

95% Confidence Interval for Mean

Lower Bound Upper Bound

18-25 64 2.78 1.374 .172 2.44 3.12

26-35 87 3.13 1.336 .143 2.84 3.41

36-45 40 2.85 1.210 .191 2.46 3.24

above 45 years 9 2.89 1.453 .484 1.77 4.01

Total 200 2.95 1.329 .094 2.76 3.14

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Table 1.2

Result: The alternate hypothesis has been rejected at p<0.05 it means that age has no

significant impact on choosing brand of jeans by customers.

Sum of Squares Df Mean Square F Sig.

Between Groups 4.964 3 1.655 .936 .424

Within Groups 346.536 196 1.768

Total 351.500 199

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H2: Occupation of a customer has a significant impact on customer choice of

jeans brand.

Table 1.3


Service 42 3.05 1.343 .207

Business 35 3.03 1.317 .223

self employed professional 44 3.11 1.401 .211

Student 56 2.71 1.371 .183

home maker 19 3.00 .943 .216

Retired 4 2.50 1.732 .866

Total 200 2.95 1.329 .094

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Table 1.4


Minimum Maximum Lower Bound Upper Bound

Service 2.63 3.47 1 5

Business 2.58 3.48 1 5

self employed professional 2.69 3.54 1 5

Student 2.35 3.08 1 5

home maker 2.55 3.45 1 4

Retired -.26 5.26 1 4

Total 2.76 3.14 1 5

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Table 1.5


Between Groups 5.763 5 1.153 .647 .664

Within Groups 345.737 194 1.782

Total 351.500 199

Result: The alternate hypothesis has been rejected at p<0.05 it means that occupation of a

customer has no significant impact on choosing brand of jeans by customers.

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H3: Income of a customer has a significant impact on customer choice of

brand of jeans

.

Table 1.6


200000-400000 4 5.00 .000 .000

400001-800000 49 4.27 .785 .112

800001-1000000 77 3.42 .496 .057

above 1000000 70 1.40 .493 .059

Total 200 2.95 1.329 .094

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Table 1.7



200000-400000 5.00 5.00 5 5

400001-800000 4.04 4.49 1 5

800001-1000000 3.30 3.53 3 4

above 1000000 1.28 1.52 1 2

Total 2.76 3.14 1 5

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Table 1.8


Between Groups 286.448 3 95.483 287.685 .000

Within Groups 65.052 196 .332

Total 351.500 199

Result: The alternate hypothesis has been accepted at p<0.01 it means that income of a

customer has significant impact on choosing brand of jeans by customers.

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H4: Price of jeans has a significant impact on customer choice brand of jeans.

Table 1.9


200000-400000 4 1.00 .000 .000

400001-800000 49 1.49 .649 .093

800001-1000000 77 3.19 .430 .049

above 1000000 70 3.83 .380 .045

Total 200 2.96 1.058 .075

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Table 1.10



200000-400000 1.00 1.00 1 1

400001-800000 1.30 1.68 1 3

800001-1000000 3.10 3.29 2 4

above 1000000 3.74 3.92 3 4

Total 2.81 3.10 1 4

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Table 1.11


Between Groups 178.329 3 59.443 263.203 .000


Total 222.595 199

Result: The alternate hypothesis has been accepted at p<0.01 it means that price of a jeans has

significant impact on choosing brand of jeans by customers.

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Correlation between annual family income and brand preferences of

respondent

Table 1.12

annual family

income of

respondent

brand

preference of

respondent

annual family income of

respondent

Pearson Correlation 1 -.872**

Sig. (2-tailed) .000

N 200 200

brand preference of

respondent

Pearson Correlation -.872** 1

Sig. (2-tailed) .000

N 200 200

Result: there is a strong correlation between annual family income and brand preferences of

respondent. Correlation is significant at the 0.01 level.

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H5: Price of jeans has an impact on customer perception about the quality of

brand of jeans they are using.

Table 1.13




Rs1500-2500 33 3.03 .883 .154 2.72 3.34 1 4

Rs2501-3500 17 3.29 .470 .114 3.05 3.54 3 4

3501-4500 76 3.95 .225 .026 3.90 4.00 3 4

Rs4501-5500 74 4.73 .447 .052 4.63 4.83 4 5

Total 200 4.03 .795 .056 3.92 4.14 1 5

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Table 1.14


Between Groups 78.937 3 26.312 110.001 .000


Total 125.820 199

Result: The alternate hypothesis has been accepted at p<0.01 it means that price of a jeans has

significant impact on quality perception about brand of jeans by customers

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Findings

1. Age has no significant impact on choosing brand of jeans by customers.

2. Occupation of a customer has no significant impact on choosing brand of jeans by customers.

3. Income of a customer has significant impact on choosing brand of jeans by customers.

4. Price of jeans has significant impact on choosing brand of jeans by customers.

5. Price of a jeans has significant impact on quality perception about brand of jeans by

customers.

6. There is a strong correlation between annual family income and brand preferences of

respondent.

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Limitation

The area of research has been limited to Delhi NCR area due to financial and time.

The number of respondent has been limited to 200 only due to time foundation.

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Conclusion

Through the research we can say that there is a impact of price income of a jeans brand on the

customer choice of brand. Also there is a strong correlation between price of the jeans and

customer satisfaction with the brand of jeans.

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Recommendations

From the above findings and analysis, following recommendations could be drawn:

Levis should more aggressively tap the youth segment, which lies in the age group between 18-25. The

reason for the same is Levis was ranked first in terms of the overall brand image. Hence, Levis has a

scope to reach the top position and encase through increase in sales.

Since most of customers buy twice a year (i.e. every 6months) or occasionally, and they are not affected by the

promotions, Levis should aggressively advertise coupled with effective sales promotions for improving

customer recall and Brand.

It was also found from the survey that colour range is low. This also limits preference towards Levis as a brand. This

area should be properly looked after by making available hosts of colours.

After sales service which is becoming the most critical success factor seems to be not given due importance. .Proper

after sales service can provide a competitive edge through efficient customer relationship

management

Levis is perceived as premium brand in India. Hence, an economy product range can also tap the

unexplored middleclass range.

Since Levis jeans is majorly available in departmental stores and factory outlets, reaching the

customer and availing him with consumer schemes is difficult. India having a large middle class customer

group still being not exploited can be reached through making Levis jeans available at local retail outlets.

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Annexure A

Questionnaire

Please answer all the questions for a fair result and evaluation. All the information provided

by you will be used for academic purpose and kept confidential.

Please specify your:

1) Gender:

a) Male

b) Female

2) Age Group:

a) 18-25 years

b) 26-35 years

c) 36-45 years

d) Above 45 years

3) Occupation:

a) Service

b) Business

c) Self Employed Professional

d) Student

e) Home maker

f) Retired

4) Education:

a) Up to 10+2

b) Graduate/Diploma

c) Post Graduate

5) Annual Family Income:

a) Rs. 200000-400000

b) Rs. 400001-800000

c) Rs. 800001-1000000

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d) Above Rs. 1000000

6) Which brand of Jeans do you prefer most?

a) Levi’s

b) Numero Uno

c) Woodland

d) Tommy Hilfigure

e) Any other, Please Specify __________

Please answer rest of the questions in context of your most preferred brand X of jeans only.

7) Which one of the following is the most important reason to prefer brand X?

a) Fabric

b) Style

c) Brand Image

8) How frequently you normally buy the X brand?

a) Monthly

b) Within 3months

c) Within 6 months

d) Annually

9) Please evaluate brand X on below mentioned features. (You may assign values from 1 to 5

where 1= lowest performance, 5= highest performance)

a) Fabric

b) Style

c) Brand Image

10) How did you come to know about brand X? Through:

a) T.V. Advertisement

b) Print Advertisement

c) Hoarding

d) Friends

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e) Any other, please specify __________

11) In what price range you prefer to buy to buy?

a) Rs 1500-2500

b) Rs 2501-3500

c) Rs 3501-4500

d) Rs 4501-5500

Please put (tick) on a scale of 1-5, (where as 1=Never,2=Seldom, 3=Can’t

say,4= Often, 5 = Much)

12. Are you satisfied with the quality of products of X Brand?

1 2 3 4

13. How satisfied are you with the clarity of information which provided?

1 2 3 4

14. How satisfied are you overall with the service you received?

1 2 3 4

15. Please, give us your suggestions and recommendations for Levi Strauss and Co. with out any

hesitation.

Thank you for your cooperation!

68

Bibliography

1. www.google.com

2. http://en.wikipedia.org/wiki/Levi_Strauss.

3. http://www.levi.co.in/

4. Magazine

http://www.google.com/

http://en.wikipedia.org/wiki/Levi_Strauss

http://www.levi.co.in/

Levi's project

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