business

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Introduction

Levi Strauss & Co. is one of the world¡¯s largest brand-name apparel markets with sales in more than 100 countries. It was founded in 185, started with Levi¡¯s® jeans in 187. They are market-leading apparel products are sold under the Levi¡¯s®, Dockers®, and Levi Strauss Signature͐ brands. It is organized into three geographic divisions Levi Strauss, the America (LSA) based in San Francisco headquarters; Levi Strauss Europe, Middle East and Africa (LSEMA) based in Brussels; Asia Pacific Division (APD) in Singapore

1. The position of Levi Strauss & Co.

1.1 Estimate the market share




Market share described as an ¡®Measure for the relative size of a firm in an industry or market, in terms of the proportion of total output, sales or capacity it accounts for.¡¯1 When estimate one firm¡¯s market share, it should be relative to these following sections

l The first one is Levis¡¯® is a dominant brand.

Dominant brand is ¡®the market leading brand within a range of similar products.¡¯ Note, that from the annual report of Levi Strass & Co., the net sales in 00 is $4,16,50,000 it can be presumed that Levis® as the world¡¯s well-know brand, even if its price is more expensive than the other normal jeans, (according to its data show in financial report, the price more than $50 for per unit), but it also can get the high net sales from the market, because Levis® is a dominant brand in the jeans market. This situation is known as by the people, which called as ¡®the effectives of famous brand¡¯. It can be seen that one dominant brand will be get the more gross profit in market cause it is a well-known brand in the world. For instance, many supermarket shoppers are more likely to buy the brand goods than goods that produced by supermarket itself, although these goods are not have the differences in virtual. Therefore, Levis¡¯® is a dominant brand which is one of the determinations of market share.

l The second one is advertising for Levis’®

Advertising is an major components of the promotional mix, it can create awareness in consumers?mind, advertising describe as ‘any paid form of non-personal communication of ideas or products in the prime media, i.e. television, the press, posters, cinema and radio.? Review the ‘social responsibility?in the annual report of Levi Strauss & Co., one of activity is ‘The Levi’s?“Staying Alive”’ it support of the Worlds AIDS Day in order to the youth can get the facts of HIV/AID, it get the partnership with MTV, broadcast to billion people, on line activities at levi.com to increase the awareness and raised the money ,etc. It relates to the advertising elasticity, it is ‘a measure of the effect of a change in advertising upon the sales of a given good?. According to the formula ‘Ea= Percentage change in quantity demanded of good A / Percentage change in expenditure on advertising good A?, in the result, most of this value could be positive, it means that the most successful advertising activities will get the highest elasticity, the more expenditure on advertising for good, the more increased in quantity demanded of good, and vice versa. Base on this theory, and then review the annual report, it can be seen that Levi Strauss & Co. spends more money in the advertising activities,



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