Levi Strauss

Levi Strauss' CEO is John Anderson. Levi Strauss & Co., together with its subsidiaries, operates as a branded apparel company (Jeans industry)http://us.levi.com/home/index.jsp

General Description

Leivi Strauss is a private held branded apparel company. the company designs and markets jeans and other normal or caual wear for men, women, and children. Levi Stauss orperates in the americas, Europe and asia pacific. The company is based in San Fransico, Californa and employs about 11,800 people.

History Of Business

Founder Levi Strauss was born in Bavaria in 1829 and immigrated to the United States with his family in 1847. Like many people, he headed west during the California Gold Rush in 1849. Three years later, Strauss made the sea journey around Cape Horn to join his brother-in-law. San Francisco at the time was a growing town, and the opportunity was ripe for a well-run business to flourish. Strauss and Stern set up their small store near the water.

Jeans were invented when Levi Strauss, seeing the need for rugged pants for miners, had a tailor sew pants from some sturdy brown canvas he had brought with him on his journey. Once the supply of canvas ran out, Strauss turned to a thick fabric made in the French town of Nimes, known as serge de Nimes, which would be shortened to denim. The denim pants, dyed with indigo to make them blue sold rapidly, and the business of Levi Strauss & Co. expanded very fast, moving three times to new and expanded quarters in the next 13 years.

In 1873, Levi Strauss & Co. began using the pocket stitch design. Levi Strauss and Nevada tailor David Jacobs co-patented the process of putting rivets in pants for strength. On May 20, 1873, they received U.S.Patent No.139,121. This date is now considered the official birthday of "blue jeans."

The two-horse brand design was first used in 1886. The red tab attached to the left rear pocket was created in 1936 as a means of identifying Levi’s jeans at a distance. All are registered trademarks that are still in use.

Levi Strauss started in 1853

Types of Products Offered for Sale/Brand Names-Chart jeans denim

Jeans-

women

Leggins, Skinny, Straight, Boot Cut, Flare, 501 Boyfriend, Heritage Fits, Fits solutions

Men
Ex-Girlfriend, Skinny Carpenter, Skinny, Taper, Straight, Boot Cut, Relaxed, Loose, premium, Big & Tall

Jackets/ Vests-

Women
Selvedge Trucker-Ridgid, Demin Hoodie- Linen Heather, 70's Trucker Jacket- Cherish, 70's Trucker Jacket- Sweet on Blue, Trucker Jacket- Solarised White, Workewear Vest- Sunfade, Unstudded Jacket- Unstudded, Military shirt Jacket- Deep Lichen Green, New Jacet- Denim Herringbone, Trucker Jacet- Sweet Dream, Trucker Jacet- Old Blue, Cord Jacet- Lavender Frost, 70's Trucker Jacket- Bohemian, Back Tab Vest- Sugarcane, Trucker Jacet- Striped Chambray
Men
Trucker Jacket- Rigid Selvdge, Trucker work Jacet- Neppy Rigid, Trucker work Jacket- Tobacco Field,No Welt Pockets Truker Jacet- Grafton, no Welt pocket Trucker Jacet- Unstudded indigo, Trucker Jacket Cord- Chinchilla, Trucker Jacet- Urban Green, Trucker Jacket- Black Black, Truker Jacket- Rigid, Peacoat- Black Melton, Concealed Hood Jacet- Dress Blue, Concealed Hood Jacket- Brown.

T-shirts & Tees

women

Tees & Tanks, Blouses & Tunic, Sweaters & Fleece,

Men
Cattle Call Long Sleeve Woven Shirt, 50's Tee, Egan Workshirt, Work Camp Shirt, Heirloom Fleece,Re-issue Western Shirt, The Original Crew

Sweaters,

And a varity of bottoms.

Such as Shorts, Pants for both men and women.

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Channels of Distribution

Levi Strauss has a distribution channel consisting of manufacturers and retailers. The cotton fiber is grown around the world in fiber mills and then the fibers are sent to apparel factorys in over 110 countries contracted by levi with over 700 contractors.

Levi Strauss’ distribution channel starts at the manufacturer (themselves), then ships to retailers (Macy’s, Sear’s, etc.), and lastly to the consumer. Distributing their products through retailers and then to the consumers suits their target market/customers very well. Since fashion changes quickly and often, Levis has to be able to get their products to the shelves fast before they go out of style. Selling the products to retailers helps with that. There’s no middlemen that the products have to go through when selling to the retailers. This means that less time is wasted getting the product to the shelves of stores. And since many retailers carry Levi Strauss’ jeans and other products, they sell fast and much profit is made by getting the products to stores fast. Customers are happy to get the newest fashions faster than others, and this channel fits them perfectly.

The channel Levis uses fits their brand positioning perfectly. Selling their products directly to their retailer sellers allows them to keep their prices low. This allows for more people buying their product since it costs less than the competition. Less people are buying and selling the product at higher prices in between Levis and its retailers. This is how Levis has been number one in peoples’ minds for buying jeans, since they keep their prices lower than the rest.

This channel is a good fit for Levi Strauss since it allows their products to get to the shelves of the retailers quickly because no middlemen/intermediaries are used. No one in between Levi Strauss and its many retailers gets to sell their products (agents, wholesalers). This helps to keep the prices of their products down since less people buy the product for profit, so that the customers are happy and will buy more of their products since their prices are lower than the competition’s prices.

Depending on the goals, Levi Strauss could very easily surpass their economic goals. They have had a formula that has been working for over 150 years, where they were the number one seller of blue jeans in the world. They have used this channel for many years, which keeps their prices low and their demand up. Their brand positioning allows them to be thought of almost instantly when it comes to jeans. Using this same channel would be best for Levi Strauss to continue being one of the major sellers of blue jeans around the globe.

Levi Strauss’ distribution intensity is selective distribution since they sell their products through quite a few different outlets but not through every outlet possible. Some places that their products are found in include JC Penny, Herbegers, Macy’s, Marshall’s, Kohl’s, and their own stores (Levi’s). Levi’s use this strategy to help keep their good image of their products by choosing stores within an area to sell their product. This is also so that they can sell their product to places with customers within their target market instead of places that have a different target market.

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Forms of Transportation

We have been distruibuting our products in the United States, and has been insistently prusing way to reduce the carbon footprint by shifiting form the most carbon-intensive modes of transportation such as Air and Trucking into a less intensive modes such as rail and container ships.

For the Standard and Secondary day Delievery, your order has to have been received by 12:00 p.m. (noon) ET or your order will not be processed untill the next business day.

  • For over night delivery, your order must be recived and your credit card approved by 9:00 p.m. ET or your order will not be processed untill the next business day.

  • Orders with shipping of destinations in alaska or hawaii may only be shipped via second day delivery and entails 2-3 extra business days for your delivery.

  • Order shipping to an APO/FPO militayr adress or Post office box may only be shipped thourgh standard gound delilevery(through U.S. Postal Service) and should not be expedited.


Some advantages to these forms of transportation with
Rail ways shipping
  • It is one of the lowest form of transportation moades because trains carry large quantities at relatively low cost per unit.

  • Trains needs 50-70 percent less energy than a moto carrier to transport freight and they are seldom slowed or stopped by bad weather.

  • One of the safes ways of transportation


Water way shipping
  • it is also one of the lowest costs: containership and barges anre the cheapes form of greight transportation.

  • it can also carry huge qantity loads.

Main Points
-founded in 1853
-current CEO is John Anderson
-use the distribution channel of Manufacturer to Retailer to Consumer
-Use railway and waterway shipping methods
-use selective distribution for distributing products

Review Questions
1) What are some places that sell Levi Strauss products?
2) Levi Strauss has factories in how many countries?
3) What is the distribution intensity that Levi's uses? How do you know?
4) What forms of transportation do Levi Strauss use to transport their products?
5) What distribution channel does Levi Strauss use?

Citations
http://us.levi.com/home/index.jsp
http://www.levis511.co.cc/levi-strauss-co-swot-analysis-for-sale/
http://www.fundinguniverse.com/company-histories/Levi-Strauss-amp;-Co-Company-History.html