The company was founded by Levi Strauss in 1853 primarily selling wholesale dry goods. The company was founded in San Francisco, California. The innovation of the rivets in the jeans differentiated Levi’s jeans from others because of its increased durability. Over the years, Levi Over Levi’s jeans have become more popular, initially due to its durability. Jean products expanded, targeting different consumers. Levi Strauss & Co. eventually captures most of the denim jean market, becomes the largest manufacturer of jeans, and profits reach $1 billion by 1974. A tailor named Jacob Davis thought of an idea to use copper rivets to reinforce the points of strain on pants. Davis and Strauss purchased the patent of the idea of using copper rivets in clothing on May 20, 1873.

1. CORPORATE STORY ON “Levi’s”
Presented By
MANENDRA & TEAM

2. Introduction
 Levi Strauss & Co. (LS&CO.), one of the world's largest apparel
manufacturer brand
 Sold in over 110 countries, in more than 55,000 retail
locations worldwide
 Manufactures jeans in approximately 108 sizes and
20 finish fabrics
 3 Brand Portfolio - Levi’s ®,Dockers ® & Levi’s Strauss

3. Mission statement
“The mission of Levis Strauss & Co. is to sustain
responsible commercial success as a global
marketing company of branded apparel.”

4.  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 circumstances.”

5. History
 The company was founded by Levi Strauss in 1853 primarily
selling wholesale dry goods. The company was founded in San
Francisco, California.
 A tailor named Jacob Davis thought of an idea to use copper
rivets to reinforce the points of strain on pants.
 Davis and Strauss purchased the patent of the idea of using
copper rivets in clothing on May 20, 1873.

6. History Cont…….
 The innovation of the rivets in the jeans differentiated
Levi’s jeans from others because of its increased durability.
 Over the years, Levi Over Levi’s jeans have become more
popular, initially due to its durability. Jean products expanded,
targeting different consumers.
 Levi Strauss & Co. eventually captures most of the denim jean
market, becomes the largest manufacturer of jeans, and profits
reach $1 billion by 1974.

7. TimeLine
 1853: Levi Strauss begins selling dry goods in San Francisco
 1873: Levi Strauss & Co. patent riveted jeans and begin
selling them.
 1912: Koveralls, denim play suit for children, is first
nationally sold product for the company.
 1935: Company sells first blue jeans for women.
 1940s: U.S. government issues denim work clothes for
employees in the defense industry.
 1974: Company sales reach $1 billion1974: billion.
 1986: Company introduces Dockers as a new casual line of
clothes new clothes.

8. LOGO
 In 1886 the Two Horse ® brand leather patch, a symbol of the
pants Showing Strength in jeans.
 The Levi's® brand eye-catching Red Tab Device was
added to the jeans in 1936. Placed onto the right back pocket
with the word "Levi’s®" White capital letters, it differentiates
Levi's® jeans from competitors.
 Levi’s® jeans famous arched back pocket stitching is
called the “accurate.”

9.  Why choose Levi’s for the Corporate story?

10. HUMAN RESOURSE MANAGEMENT

11. HR Policy
 Recruitment & Selection
 Training
 Rewards & Recognition
 Red Tap Foundation
 Other benefits and facilities

12. Product Portfolio
Denim Pants Non-Denim Shirts Jackets Others(Foot
Pant Wear,Eye
Gears,Caps,Belt
s,Leather
Wallets,Carry
Bags,Sweaters)
Levi’s Dockers Dockers Levi’s
Strauss
Signature
Portfolio
Levi’s 501 Levi’s Strauss Levi’s Strauss
Brand
Signature Signature
Levi’s
Engineered
Jeans
Other

13. Market and Competition
 Market Share
Brand 2000 1996 1991
VF(lee and Wrangler) 25.3 24.5 17.9
Private Labels 20.2 22.1 3.2
Levi’s 17.0 18.7 31.0
Licensed/Designed labels 7.0 5.2 3.7
Gap(Gap, Banana Rep, Old Navy) 4.9 4.2 2.7
GWG 2.0 2.5 4.5
All Other 23.6 22.8 37.0

14.  Net Sale by Region
2001 2002 %Change
Americas 2,859 3148.2 9.2
Europe 1111.8 1104.5 0.7
Asia 372.7 392.4 5.0
Total company 4344.0 4645.1 6.5

15. OPERATIONS

16. How Manufacturing is being done?
The first two steps in blue jeans manufacture are carding and spinning. In
carding, the cotton is put through a machine with bent wire brushes.

17. Steps in manufacturing: -

18. 1. Preparing the cotton yarn
2. Dyeing the yarn
3. Weaving the yarn

19. 4. Making the blue jeans

20. Supply Chain

21. What a Green Sustainable Supply Chain?

22. As the public becomes more aware of
environmental issues and global warming,
consumers will be asking more questions about
the products they are purchasing. Companies will
have to expect questions about how green their
manufacturing processes and supply chain are,
their carbon footprint and how they recycle.

23. Marketing

24.  Levi’s has maintained its equity worldwide. A
mix of standardization & localization in Levi’s
products has enabled the company to become a
renowned brand worldwide.
 Levis use Differentiated marketing because
it has multiple marketing mixes i.e. it involve
multiple products, targeted towards multiple
segments.

25. Marketing Objectives
 To improve leadership market positions and
superior product and services.
 To maintain and protect the global brand.
 Increase the market share in products by annual
average of 2.8% in the next 5 years.
 Also, to maintain the global market share of
denim product in the same period.

26. POSITIONING
 Levi Strauss & Co. maintains it’’s image as an American Icon and the originator
of
American jeans.
 In 1930s, the company survived the Great Depression due to increased interest
in
Western culture.––Jeans were positioned as being worn by “cowboys..”
 Levi’’s jeans were issued to employees in the defense industry (including
veterans) during World War II
 WWII veterans were regarded as heroes.––
 During the Baby Boom era, Levi’’s targets younger consumers and positions
product as cool.

27. .U.K .Russia
.Asia
Casual
Prestige
. Argentina
. USA
Inexpensive

28. Product Features
 Comfort
 Durability
 Style

29. DISTRIBUTION CHANNEL
 LEVIS distributes JEANS by the Channel Members that is
through retailer and wholesalers.
 Levi’s is using selective but intensive
distribution level for the distribution of its
products
Levis opened around 500 outlets at prime
locations in India.

30. PRICING
 Levi’s all products are sold at listed price.
 There is no discount to offer.
 Product’s price is influenced by the following
factors:-
1. Cost of the product
2. Affordable for the target market
3. Demand of the product
4. Uniqueness and innovative features of the
products

31. PRICING STRATEGY : LEVI’S STRAUSS:
As Levi’s has different Products ranges for different
segments the pricing strategy of LEVI’S can be Called
as both penetrative as well as market growth pricing.

32. Pricing Strategy Cont…..
 Levi's came to India in 1995.
 The brand was trying to skim the market but at the cost of
market share and volume.
 LS & CO. has tried to build its image as an innovator by coming in INDIA with
their Jeans having new and latest style and look
 Levi’s India plans to vacate the middle price segment and
plans to concentrate on the lower and the higher end.

33. Cont…….
 In order to maintain revenues, the company
releases the Levi’s Signature Jeans
 To differentiate Levi’s Strauss Signature ,the
company developed new labeling and styles.
 Levi’s launched new mid market brand-Denizen
in India September 10,2010.
 Providing EMI in Jeans

34. PROMOTION & ADVERTISING
 The advertisement given by the LEVIS
stresses on the demand of the product and enhancement
of its features.
 Levis uses institutional advertising to promote company’s
image by saying Many Copy the
Red Tab No One can copy the Original.

35. Cont……
 Advertisements of Levi Strauss & Co. are very
innovative and eye-catching. Buyers are attracted
towards the product.
 Television advertisements are more innovative and
target younger crowds.
 Levi's launched "Friend's Store,"using a new Facebook tool.
150,000 fans on Facebook in India alone.

36.  Cont…………
 In the US we have the Levi’s Guy and the Levi’s Girl on
Twitter.
 On YouTube Levis released many of their TV commercials
and also do specific small cameo ads.
 Levi's CURVE ID fit

37.  To mark its 15th anniversary in the India, apparel
brand Levi's has announced
several initiatives titled 'Change Your World’'.
 Chevrolet has joined Levi Strauss for celebrating the
latter's 15th year
anniversary in India

38. BRAND AMBASDORS
 international denim brand Levis has signed Priyanka
Chopra as their brand ambassador fImran Khan Replaces Shahid
Kapoor As Levis’ Brand Ambassador
 The company frequently promoted music & theatrical
productions.
 Sponsored artists incl. Christina Aguilera, Mariah Carey, Ben Folds
Five, The White Stripes etc.

39.  LEVI’S competitors include Bugle Boy, Calvin Klein,
and Fruit of the Loom, Guess, J.C Penny, Nike, J.Crew,
Osh Kosh B’Gosh, Oxford Industries, Polo, GAP, Tommy Hilfiger,
VF, & Warnaco Group.
 Some of Levi’s competitors include:
 High end consumers
Calvin Klein
Tommy Hilfiger
 Low end consumers
Miss sixty, Guess

40.  Competitive advantage
 Economies of scale,Levi is capable of implementing a
cost leadership strategy within the company and the environment,
therefore, resulting in a competitive advantage
 the company has accumulated knowledge and
productive inputs.
 This legacy allows Levi’s to promote the image of
quality and value to their brand

41.  The brand image Levi’s encompasses results in them
having a higher price tags compared to other brand Levi’s
differentiates itself from all other competitors through the
ability to brand products through strong brand image

43. Strength
 History
 Brand Name
 Finance and Access to International Capital
 Management
 Expertise in Jeans Industries-R&D
 Distribution Channels and Global Sourcing

44. Weakness
 High Costs of brand protection
 Lack of control over quality(licensing)
 Lack of control over distribution decisions(Retailers
pressure to stop selling on the Web)
 Distribution Conflicts(Large food retailers i.e. Tesco
have been selling Levi products at lower price then standard,
damaging other channels such as Levis Strauss stores)

45. Opportunities
 Arising of New Market such as Europe and
Russia(to supply local demand)
 Technological development lower production and
coordination activities
 Low Manufacturing and production costs in
various international markets(i.e. Bangladesh)
 Development in other industries such as electronic
(MP3 player) could pass new opportunities for complementing new Levi’s
products.
 Total Market for casual wear is growing

46. Threats
 Saturation of Jeans Market.
 Economic Downturns in some countries.
 Fast changes in Consumer tastes.
 Local regulations on advertisement.
 Lack protection of property rights in some
countries such as China.
 Increasing Competition from Gap,Guess,J.C.
Penny,Nike,Mochino,D&G,Osh Kosh,Oxford,
Polo.

47. “LIFE BLOOD AND NERVE CENTRE OF BUSINESS”

48. BALANCE SHEET
Amount in $ thousand Amount in $ thousand
2008 2009
Current Assets
Cash and Cash Equiv 210,812 270,804
Restricted Cash 2,664 3,684
Accounts Receivable, Net 546,474 552,252
Inventories 542,674 451,272
Deferred Tax Assets 114,123 135,508
Other Current Assets 88,527 92,344
Total Current Assets 1,505,274 1,505,864
Property, Plant and Equipment,
Net 411,908 430,070
Goodwill 204,663 241,768
Acquired Intangible Assets, Net 42,774 103,198
Non Current Deferred Tax Assets 526,069 601,526
Other Assets 86,187 106,955
Total Assets 2,776,875 2,989,381

49. Current Liabilities: Amount in $ thousand Amount in $ thousand
Short-term borrowings 20,339 18,749
Current maturities of long-term debt 70,875 00
Current maturities of capital leases 1,623 1,852
Accounts payable 203,207 198,220
Restructuring liabilities 2,428 1,410
Other accrued liabilities 493158 506745
Total current liabilities 791,630 726,976
Long-term debt 1,761,993 1,834,151
Long-term capital leases 6,183 5,513
Postretirement medical benefits 130,223 156,834
Pension liability 240,701 382,503
Long-term employee related benefits 87,704 97,508
Long-term income tax liabilities . 42,794 55,862
Other long-term liabilities 46,590 43,480
Minority interest 17,982 17,735
Total liabilities 3,125,800 3,320,562
Temporary equity 592 1,938
Stockholders’ Deficit:
Common stock 373 373
Additional paid-in capital 53,057 39,532
Accumulated deficit -275,032 -123,157
Accumulated other comprehensive loss -127,915 -249,867
Total stockholders’ deficit -349,517 -333,119
Total liabilities, temporary equity and

50. Comparative Balance Sheet

51. Amount in $ Amount in $
thousand thousand
2008 2009 absolute change % change
Current Assets
Cash and Cash Equiv 210,812 270,804 59,992 28
Restricted Cash 2,664 3,684 1,020 38
Accounts Receivable,
Net 546,474 552,252 5,778 1
Inventories 542,674 451,272 -91,402 -17
Deferred Tax Assets 114,123 135,508 21,385 19
Other Current Assets 88,527 92,344 3,817 4
Total Current Assets 1,505,274 1,505,864 590 0
Property, Plant and
Equipment, Net 411,908 430,070 18,162 4
Goodwill 204,663 241,768 37,105 18
Acquired Intangible
Assets, Net 42,774 103,198 60,424 141
Non Current
Deferred Tax Assets 526,069 601,526 75,457 14
Other Assets 86,187 106,955 20,768 24
Total Assets 2,776,875 2,989,381 212,506 8

52. Current Liabilities:
Short-term
borrowings 20,339 18,749 -1,590 -8
Current maturities
of long-term debt 70,875 -70,875 -100
Current maturities
of capital leases 1,623 1,852 229 14
Accounts payable 203,207 198,220 -4,987 -2
Restructuring
liabilities 2,428 1,410 -1,018 -42
Other accrued
liabilities 493158 506745 13,587 3
Total current
liabilities 791,630 726,976 -64,654 -8
0
Long-term debt 1,761,993 1,834,151 72,158 4
Long-term capital
leases 6,183 5,513 -670 -11
Postretirement
medical benefits 130,223 156,834 26,611 20
Pension liability 240,701 382,503 141,802 59
Long-term employee
related benefits 87,704 97,508 9,804 11
Long-term income
tax liabilities . 42,794 55,862 13,068 31
Other long-term
liabilities 46,590 43,480 -3,110 -7
Minority interest 17,982 17,735 -247 -1
Total liabilities 3,125,800 3,320,562 194,762 6

53. Temporary equity 592 1,938 1,346 227
Stockholders’ Deficit:
Common stock 373 373 0
Additional paid-in
capital 53,057 39,532 -13,525 -25
Accumulated deficit -275,032 -123,157 151,875 -55
Accumulated other
comprehensive loss -127,915 -249,867 -121,952 95
Total stockholders’
deficit -349,517 -333,119 16,398 -5
Total liabilities,
temporary equity
and stockholders’
deficit $2,776,875 $2,989,381 212,506 8

54. INCOME STATEMENT
Amount in $ thousand Amount in $ thousand
2008 2009
Net Sales $4,303,075 4,022,854
Licensing revenue $97,839 82912
Net revenues 4,400,914 4,105,766
Cost of goods sold 2,261,112 2,132,361
Gross profit 2,139,802 1,973,405
Selling, general and
administrative expenses 1,606,482 1,590,093
Restructuring charges, net 8,248 5,224
Operating income 525,072 378,088
Interest expense -154,086 -148,718
Loss on early extinguishment of
debt. -1,417
Other income (expense), net -1,400 -38,282
Income before income taxes. 368,169 191,088
Income tax expense (benefit) . 138,884 39,213
Net income $229,285 $151,875

55. Comparative Income Statement

56. 2008 2009 absolute change % change
Net Sales $4,303,075 4,022,854 ($280,221) -6.51
Licensing revenue $97,839 82912 ($14,927) -15.26
Net revenues 4,400,914 4,105,766 ($295,148) -6.71
Cost of goods sold 2,261,112 2,132,361 ($128,751) -5.69
Gross profit 2,139,802 1,973,405 ($166,397) -7.78
Selling, general and
administrative expenses 1,606,482 1,590,093 ($16,389) -1.02
Restructuring charges, net 8,248 5,224 ($3,024) -36.66
Operating income 525,072 378,088 ($146,984) -27.99
Interest expense -154,086 -148,718 $5,368 -3.48
Loss on early extinguishment
of debt. -1,417 $1,417 -100.00
Other income (expense), net -1,400 -38,282 ($36,882) 2634.43
Income before income taxes. 368,169 191,088 ($177,081) -48.10
Income tax expense (benefit)
. 138,884 39,213 ($99,671) -71.77
Net income $229,285 $151,875 ($77,410) -33.76

57. Ratio analysis
2008 2009
Net profit ratio 5 4
Gross profit ratio 50 49
Operating profit ratio 12.20 9.40
Current ratio 1.90 2.07

58. Corporate social Responsibility
“Each of us has a capacity to make business
not only a source of economic, wealth but
also a source for Social and Economic justice” ”

59. C.S.R cont…
 HIV/AIDS
 Care Tags
 Her Project
 Eco Friendly
 Donation & Grants

60. Think about the next Choice