AMG Marketing

Agenda

Market Summary

SWOT

Marketing Strategy

Implementation

Finance

Market SummaryUS retail sales at clothing and accessories stores decreased 3.1% to $209.36 billion in 2009.

GDP turned positive in the third quarter of 2009, Standard & Poor’s Economics projects a 2.1% increase in consumer spending in 2010.

We expect apparel spending to increase in line with the projected 2.1% increase in consumer spending.

Levi Strauss & Co.

Levis has seen a drop in the market for the last several of

years due to changing consumer preferences toward

higher-end fashion lines of denim, and more differentiated

products.

SWOTStrengths

Levi Strauss offered brandsMultiple distribution channels Global presenceHigh brand equity

Weakness

Dependence on few wholesalers Changes in senior management team Lack of control over cost structureProfitability has declined

Opportunities

economies of scale through expanded global presence Multiple Distribution ChannelsGrowth through dedicated retail storesLaunch of innovative organic sustainable clothing line

Threats

Global economic DownIncreased minimum wage Reliance on overseas contract manufacturingRivalry among competitorsBargaining power of buyers

Competitors

New Product Needed!

Introducing or new ECO- CENTRIC

CLOTHING LINE

Using the green line to differentiate from competition and Levi’s mainline.

Marketing StrategyMission

The primary goal we peruse with our ECO-CENTRIC CLOTHING is to provide an earth friendly product

made from renewable materials to a large mainstream market.

Marketing StrategyFinancial ObjectivesReturn on investment (ROI) inclusive of goodwill of more than 20%

Increase net profit from $56 million in 2009 to $65 million in 2011, and $72 million in 2012.

Gain 30% of the market for eco-friendly apparel by October 2011.

Marketing Strategy

Sell our GREENJEANS to 30% of the market for eco-friendly apparel in the first

half of 2011, and establish a steady buying rate of 3 units per year within our

target customer group by 2012.

Marketing Objectives

Marketing Strategy

Metropolitan cities in the United States and Western Europe

Ca. 800,000 consumers. The predicted potential annual profit as a whole is $4.2 million.

Target Market

Positioning Matrix

Low Quality High Quality

Green

Conventional

Product Line & Pricing

Levi will be offering one specific product line with many styles and

types of items, such as pants, blouses, and accessories.

Distribution StrategyThe product line will only be available through our more prestige retail chains

the product line will be available via internet, bringing flexibility and convenience to customers.

Advertising & PromotionLaunch commercials a few months prior to the product launch, and for 6 months following the introduction.

Print ads in fashion magazines and on billboards in downtown areas in the regions the line will be carried.

Levi will feature the product line on its' website .

Advertising & Promotion

Levi will be offering a promotional event during the product line launch.

Coupons will be distributed on the streets in downtown areas and at big local sporting events and select large concerts.

Promotion

Marketing ResearchWhat fashion designers are most valued by our customers?

What kind of knowledge do our customers have about organic and sustainable clothing?

What are the clothing tastes of our wealthy clientele?

What are the demographics of our wealthy clientele?

What element of sustainability is most important to our customers?

Implementation TimetableIMPLEMENTATION TIMETABLE

March 1, 2010 Send out promotional reminders about new green line. Reminder will include 15% of green product

April 15 Advertisements featuring Levi’s Eco-Centric Line debut online and on television

April 22 Levi Strauss & Co. launches Eco-Centric Line on Earth Day. Benefit concert in Union Square S.F. to promote new line. Free fittings, live music, gift bags with promotional coupons and look book featuring the new line.

April 29 Email blasts sent out to further promote.

Sales & Expense Forecast

Break-even Analysis

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