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PROJECT REPORT ON
A STUDY ON CONSUMER PREFERENCE TOWARD UNITED COLORS OF BENETTON VS LEVI’S STRAUSS & CO.
Project Report Submitted in Partial Fulfillment Of Bachelor of Business Administration BBA 5th Semester To Guru Gobind Singh Indrapratha University, Delhi
Guide: Mr. Gopal
Submitted By: Gauarv Chhabra (0761371705)
IITM Nurturing Excellence
Institute of Information Technology and Management New Delhi – 110058 Batch (2005-2008)
CERTIFICATE
I, Mr. Gaurav Chhabra, Roll No. 0761371705 certify that the Project Report (BBA-310) entitled “A Study on Consumer Preference Toward United Colors of Benetton Vs Levi’s Strauss & Co.” is done by me and it is an authentic work carried out by me at Institute Of Information Technology And Management. The matter embodied in this project work has not been submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.
Signature of the Student Date:
Certified that the Project Report (BBA-310) entitled “A Study on Consumer Preference Toward United Colors of Benetton Vs Levi’s Strauss & Co.” done by Mr. Gaurav Chhabra, Roll No. 0761371705, is completed under my guidance.
Signature of the Guide: Date: Name of the Guide: Gopal Designation: Lecturer Address: Institution
of
Information
Technology & Management Countersigned
Director/ Project Coordinator
ACKNOWLEDGEMENT 2
I the undersigned, acknowledge with thanks the kind advice of Mr. Gopal for their tremendous encouragement to make this project who had not only their efforts in briefing me minutely but also advising me time to time about the Consumer Preference Toward United Colors of Benetton and Levi’s Strauss & Co.
I am also heartily gratitude and thankful of other software’s for their kind support.
Gaurav Chhabra
EXECUTIVE SUMMARY 3
This project is in partial fulfillment of the requirement for the award of Bachelors of Business Administration .This project is based upon the topic “A Study on Consumer Preference Toward United Colors of Benetton Vs Levi’s Strauss & Co.”. The research was done for UNITED COLORS OF BENETTON VS LEVI’S STRAUSS & CO., Clothing Company in North and West Delhi region for 2 months. Levi Strauss & Co. (LS&CO) is a privately held clothing company known worldwide for its Levi's brand of denim jeans. Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions: North Americas (LSNA), Europe (LSE)and Asia Pacific Division (APD). Benetton Group S.p.A. is an upscale global clothing brand, based in Treviso, Italy. Its core business is clothing with the casual line marketed as the "United Colors of Benetton", a fashion-oriented "Sisley" division, "Playlife" leisurewear, and "Killer Loop" streetwear brands. The main objective of this research is to find out the satisfaction level of consumer of Levi’s Strauss & Co. and United Colors of Benetton. Research has been conducted through the self-administered questionnaire. After the questionnaire was filled the data analysis is carried out by applying established theoretical concepts tools and techniques. Apart from that through various tools at my disposal I have been able to identify the important compenents under one factor and difference of perception of various factors between the two groups. Suggestions are also given based on the informal talks with people, open ended questions and from data analysis.
CONTENTS S. No.
Title 4
Page No.
1.
LIST OF TABLES
6
2.
LIST OF FIGURES
7
3.
LIST OF SYMBOLS
8
4.
LIST OF ABBREVIATIONS
9
5.
INTRODUCTION i.
Company Profile
10
ii.
Objective
23
iii.
Scope
24
iv.
Methodology
25
6.
DATA REDUCTION & PRESENTATION
27
7.
DATA ANALYSIS
49
8.
SUMMARY & CONCLUSIONS i.
Results of the Study
50
ii.
Limitations
51
iii.
Suggestions & Scope for further
52
Study 9.
REFERENCE/BIBLIOGRAPHY
53
10.
APPENDICES
54
LIST OF TABLES Table No.
Title
Page No.
1.
Number of Age Group
27
2.
Number of Monthly Income
28
3.
Number of people wear branded apparels
29
5
4.
Number of people wear brand the most
30
5.
Number of people prefer Levi’s product
31
6.
Number of people know about the eshopping i. ii.
7.
Levi’s
32
Benetton
33
Number of people doing Shopping frequent
34
via Internet 8.
Whose product range is better
35
9.
Number of people associate the brand
36
Levi’s with 10.
Number of people associate the UCB with
11.
Number of people satisfied with the
37
Services provided by i. ii. 12.
38
Benetton
39
Level of Satisfaction about Services i. ii.
13.
Levi’s
Levi’s
40
Benetton
41
Number of brand’s Showrooms people find
42
more in most of the places 14.
How does number of people notice
43
advertisements in media 15.
Influence of advertisement of Levi’s-
44
product on number of people choice 16.
Influence of advertisement of Benetton6
45
product on number of people choice 17.
Number of people prefer any other Brand Except i.
Levi’s
46
ii.
Benetton
47
iii.
Both
48
LIST OF FIGURES Figure No.
Title
Page No.
1.
Figure of Age Group
27
2.
Figure of Monthly Income
28
3.
Figure of people wear branded apparels
29
4.
Figure of people wear brand the most
30
5.
Figure of people prefer Levi’s product
31
6.
Figure of people know about the eshopping
7.
iii.
Levi’s
32
iv.
Benetton
33
Figure of people doing Shopping frequent 7
34
via Internet 8.
Whose product range is better
35
9.
Figure of people associate the brand Levi’s
36
with 10.
Figure of people associate the UCB with
11.
Figure of people satisfied with the Services
37
provided by
12.
13.
iii.
Levi’s
38
iv.
Benetton
39
Level of Satisfaction about Services iii.
Levi’s
40
iv.
Benetton
41
Figure of brand’s Showrooms people find
42
more in most of the places 14.
Figure of how does number of people notice
43
advertisements in media 15.
Figure of influence of advertisement of
44
Levi’s-product on number of people choice 16.
Figure of influence of advertisement of
45
Benetton-product on number of people choice 17.
Figure of people prefer any other Brand Except iv.
Levi’s
46
v.
Benetton
47
Both
48
vi.
8
LIST OF SYMBOLS
S. No.
Symbol
Nomenclature & Meaning
1.
$
Dollar
2.
&
And
3.
%
Percent
9
LIST OF ABBREVIATIONS
S. No.
Abbreviations
Full Name
1.
LS&CO
Levi Strauss & Company
2.
UCB
United Colors of Benetton
3.
GWG
Great Western Garment Co.
10
CHAPTER – I INTRODUCTION Clothing protects the human body from extreme weather and other features of the environment. It is worn for safety, comfort, and modesty and to reflect religious, cultural and social meaning. The practical function of clothing is to protect the human body from dangers in the environment: weather (strong sunlight, extreme heat or cold, and precipitation, for example), insects, noxious chemicals, weapons, and contact with abrasive substances, and other hazards. Clothing can protect against many things that might injure the naked human body. In some cases clothing protects the environment from the clothing wearer as well (example: medical scrubs).
A baby wearing many items of winter clothing: headband, cap, fur-lined coat, shawl and sweater.
11
According to archaeologists and anthropologists, the earliest clothing probably consisted of fur, leather, leaves or grass, draped, wrapped or tied about the body for protection from the elements. Knowledge of such clothing remains inferential, since clothing materials deteriorate quickly compared to stone, bone, shell and metal artifacts.
A Neanderthal clothed in fur
Denim, in American usage since the late eighteenth century, [1] denotes a rugged cotton twill textile, in which the weft passes under two (twi- "double") or more warp fibers, producing the familiar diagonal ribbing identifiable on the reverse of the fabric, which distinguishes denim from cotton duck. The word comes from the name of a sturdy fabric called serge, originally made in Nimes, France, by the Andre family. Originally called serge de Nîmes, the name was soon shortened to denim.[2] Denim was traditionally colored blue with indigo dye to make blue "jeans," though "jean" then denoted a different, lighter cotton textile; the contemporary use of jean comes from the French word for Genoa, Italy (Gênes), where the first denim trousers were made.
12
Denim as used for blue jeans, with a copper rivet to strengthen the pocket.
COMPANY PROFILE Levi Strauss & Co. (LS&CO) Levi Strauss & Co. (LS&CO) is a privately held clothing company known worldwide for its Levi's brand of denim jeans. It was founded in 1853 when Levi Strauss came to San Francisco, California to open a west coast branch of his brothers' New York dry goods business. Although the company began producing denim overalls in the 1870s, modern jeans were not produced until the 1920s. The company briefly experimented (in the 1970s) with employee ownership and a public stock listing, but remains owned and controlled by descendants and relatives of Levi Strauss' four nephews.
Levi Strauss & Co.
Type Private Founded 1853 Headquarters San Francisco, California John Anderson, CEO & President of Key people LS&CO Industry Clothing Website http://www.levi.com/
13
Organization Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions: Levi Strauss, North Americas (LSNA), based in the San Francisco headquarters; Levi Strauss Europe (LSE), based in Brussels; and Asia Pacific Division (APD), based in Singapore.The company employs a staff of approximately 8,850 people worldwide, and owns and develops a few brands. Levi's, the main brand, was founded in 1873 in San Francisco, specializing in riveted denim jeans and different lines of casual and street fashion. In the 1970s, Great Western Garment Co. (GWG), a Canadian clothing manufacturer, was acquired by Levi Strauss. GWG was responsible for the introduction of the modern stone washing technique, still in use by Levi Strauss. 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. Dockers was launched in 1986. Sold largely through department store chains, helped the company grow through the mid-1990s, as denim sales began to fade. Levi Strauss attempted to sell the brand 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 phone's cosmetic attributes are customisable at the point of purchase.
History Jacob Davis was a tailor who frequently purchased bolts of cloth from Levi Strauss & Co.'s wholesale house. After one of Davis' costumers kept purchasing cloth to reinforce torn pants, he had an idea to use copper rivets to reinforce the points of strain, such as on the pocket corners and at the base of the button fly. Davis did not have the required 14
money to purchase a patent, so he wrote to Levi suggesting that they both go into business together. After Levi accepted Jacobs' offer, on May 20, 1873, the two men received patent #139,121 from the United States Patent and Trademark Office. The patented rivet was later incorporated into the company's jean design and advertisements. Contrary to an advertising campaign suggesting that Levi Strauss sold his first jeans to gold miners during the California Gold Rush (which peaked in 1849), the manufacturing of denim overalls only began in the 1870s. Modern jeans began to appear in the 1920s. In the 1950s and 1960s, Levi's jeans became popular among a wide range of youth subcultures, including greasers, mods, rockers, hippies and skinheads. Levi's popular shrink-to-fit 501s were sold in a unique sizing arrangement; the indicated size was related to the size of the jeans prior to shrinking, and the shrinkage was substantial. The company still produces these unshrunk, uniquely sized jeans, but they don't sell very well. 1990s and later By the 1990s, the brand was facing competition from other brands and cheaper products from overseas, and began accelerating the pace of its US factory closures and its use of offshore subcontracting agreements. In 1991, Levi Strauss faced a scandal involving six subsidiary factories on the Northern Mariana Islands, a US commonwealth, where some 3% of Levi's jeans sold annually with the Made in the USA label were shown to have been made by Chinese laborers under what the United States Department of Labor called "slavelike" conditions. Cited for sub-minimal wages, seven-day work weeks with 12-hour shifts, poor living conditions and other indignities, Tan Holdings Corporation, Levi Strauss' Marianas subcontractor, paid what were then the largest fines in US labor history, distributing more than $9 million in restitution to some 1,200 employees. Levi Strauss claimed no knowledge of the offenses, then severed ties to the Tan family and instituted labor reforms and inspection practices in its offshore facilities. The activist group Fuerza Unida (United Force) was formed following the January 1990 closure of a plant in San Antonio, Texas, in which 1,150 seamstresses (primarily Latina) — some of whom had worked for Levi Strauss for decades — saw their jobs exported to Costa Rica. During the mid and late 1990s, Fuerza Unida picketed the Levi Strauss 15
headquarters in San Francisco and staged hunger strikes and sit-ins in protest of the company's labor policies. The company took on multi-billion dollar debt in February 1996 to help finance a series of leveraged stock buyouts among family members. Shares in Levi Strauss stock are not publicly traded; the firm is today owned almost entirely by indirect descendants and relatives of Levi Strauss, whose four nephews inherited the San Francisco dry goods firm after their uncle's death in 1902. Levi's bonds are traded publicly, as are shares of the company's Japan affiliate, Levi Strauss Japan K.K. In June 1996, the company offered to pay its workers an unusual dividend of up to $750 million in six years' time, having halted an employee stock plan at the time of the internal family buyout. However, the company failed to make cash flow targets, and no worker dividends were paid. In 2002, Levi Strauss began a close business collaboration with Wal-Mart, producing a special line of "Signature" jeans and other clothes for exclusive sale in Wal-Mart stores until 2006. Levi Strauss Signature jeans can now be purchased at several stores in the US, Canada and Japan. The company is now Wal-Mart's largest worldwide strategic partner, conforming to WalMart's business and labor practices. Levi Strauss & Co. closed 58 US manufacturing plants between 1981 and 1990, sending 25% of its sewing operations overseas. Levi's accelerated US plant closings through the 1990s, closing its last US domestic plant (in San Antonio, Texas) in January 2004. According to the New York Times, Levi Strauss leads the apparel industry in trademark infringement cases, filing nearly 100 lawsuits against competitors since 2001. Most cases center on the alleged imitation of Levi's back pocket double arc stitching pattern (U.S. trademark #1,139,254]). Levi's has sued Guess?, Esprit Holdings, Zegna, Zumiez and Lucky Brand Jeans, among other companies. By 2007, Levi Strauss was again said to be profitable after declining sales in nine of the previous ten years. Its total annual sales, of just over $4 billion, were $3 billion less than during its peak performance in the mid 1990s. After more than two decades of family ownership, rumors of a possible public stock offering were floated in the media in July 2007. 16
VALUES Our values are fundamental to our success. They are the foundation of our company, define who we are and set us apart from the competition. They underlie our vision of the future, our business strategies and our decisions, actions and behaviors. We live by them. They endure. Four core values are at the heart of Levi Strauss & Co.: Empathy, Originality, Integrity and Courage. These four values are linked. As we look at our history, we see a story of how our core values work together and are the source of our success.
VISION The story of Levi Strauss & Co. and our brands is filled with examples of the key role our values have played in meeting consumer needs. Likewise, our brands embody many of the core values that our consumers live by. This is why our brands have stood the test of time. Generations of people have worn our products as a symbol of freedom and selfexpression in the face of adversity, challenge and social change. They forged a new territory called the American West. They fought in wars for peace. They instigated counterculture revolutions. They tore down the Berlin Wall. Reverent, irreverent — they all took a stand. Indeed, it is this special relationship between our values, our consumers and our brands that is the basis of our success and drives our core purpose. It is the foundation of who we are and what we want to become:
People love our clothes and trust our company. We will market and distribute the most appealing and widely worn apparel brands. 17
Our products define quality, style and function. We will clothe the world.
CULTURE We offer a dynamic, performance-driven work environment, and a corporate culture characterized by ethical conduct and a commitment to social responsibility. We value and depend upon the diverse backgrounds, experience, knowledge and talents of all our employees. We also embrace and reflect the ethnic, cultural and lifestyle diversity of the communities where we live and work. Our employee programs and corporate initiatives distinguish us from others in our industry and in business.
Our Practices Just as we are a pioneer in apparel, we are a leader in areas of equal employment and safe workplace practices around the world. •
We were the first multinational apparel company to develop a comprehensive code of conduct designed to ensure that workers making our products anywhere in the world are safe, and treated with dignity and respect.
•
Our commitment to equal employment opportunity and diversity predates today's programs, beginning in the 1940s when we desegregated our factories in California.
Our Programs Our programs help employees respond to the demands of business and the needs of everyday life. •
We support employee volunteerism.
•
We were among the first companies to offer the employee benefit of flexible time off. We also support flexible work schedules and other options that help our employees better manage their workload and personal needs.
18
•
Our managers coach employees and help them set goals that will challenge them professionally and personally.
•
We offer a total compensation package that includes a competitive salary, shortand long-term incentive plans and a wide array of benefits.
BRANDS At Levi Strauss & Co., we market our products under leading brand names that are among the most successful apparel brands in the world. Our Levi's brand is one of the most widely recognized brands in the history of the apparel industry. From updating classics with the latest finishes, fabrications and colors, to reinventing five-pocket jeans, we are always creating new, innovative products. Learn more about each of our brands below.
Invented in 1873, Levi's jeans are the original, authentic jeans. They are the most successful, widely recognized, and often imitated clothing products in the history of apparel. Levi's jeans have captured the attention, imagination, and loyalty of generations of diverse individuals. As the inventor of the category, the Levi's® brand continues to define jeanswear with the widest range of products available, from quintessential classics, such as the famous Levi's 501 Original jean, to favorite fits and styles in our Red Tab™ and Premium collections.
The Dockers brand is the leader in providing stylish and comfortable casual wear. The brand continues to expand its offerings to provide men and women with clothes that offer versatility for an on-the-go lifestyle. Dockers khakis were first introduced in 1986 as the casual alternative to jeans and dress pants. The line has since expanded from men's casual pants to an entire wardrobe offering 19
of tops, pants, shoes, belts, outerwear and hosiery for men and women in more than 50 countries in every region of the world.
The Levi Strauss Signature brand was launched in 2003 exclusively for value-conscious consumers. The brand provides these consumers with high-quality, affordable, fashionable jeanswear and casualwear from a company and name they trust. The Levi Strauss Signature brand includes a collection of denim and non-denim pants, shirts, skirts, and jackets for men, women, and children. All Levi Strauss Signature apparel is designed with the high-quality construction and craftsmanship that makes Levi Strauss & Co. famous.
20
United Colors of Benetton Benetton Group S.p.A. is an upscale global clothing brand, based in Treviso, Italy. The name comes from four members of the Benetton family who founded the company in 1965. Benetton Group is listed on the Borsa Italiana, the Frankfurt Stock Exchange and the New York Stock Exchange. From left: Luciano, Giuliana, Gilberto and Carlo Benetton
The career began in 1955 when Luciano Benetton, the eldest of four children, was only 20 years old and working as a salesman in Treviso. He saw sales for colourful clothes. He sold a younger brother's bicycle in order to buy the first second-hand knitting machine, and began to market a small collection of sweaters to local stores in the area of Veneto. The positive reaction to his designs was only the beginning of a solid start. Soon after, he asked his sister and his two younger brothers, Giberto and Carlo, to join him. In 1968, the Benettons opened their first store in Belluno and the year after in Paris, with Luciano as chairman, his brother Giberto in charge of administration, their younger brother Carlo running production, and Giuliana as a chief designer. Its core business is clothing with the casual line marketed as the "United Colors of Benetton", a fashion-oriented "Sisley" division, "Playlife" leisurewear, and "Killer Loop" streetwear brands. Their products include womenswear, menswear, childrenswear and underwear and they have recently expanded into toiletries, perfumes, exclusive watches and items for the home such as kitchen accessories and baby products.
21
The "United Colors" publicity campaign originated when photographer Oliviero Toscani was given carte blanche by the Benetton management. Under Toscani's direction, ads were created that contained striking images unrelated to any actual products being sold by the company. These graphic, billboard sized ads included depictions of a variety of 'shocking' subjects such as a deathbed scene of a man (AIDS activist David Kirby) dying from AIDS, a bloodied, unwashed newborn baby with umbilical cord still attached, two horses mating, close-up pictures of tattoos reading "HIV Positive" on the bodies of men and women, a collage consisting of genitals of persons of various races, a priest and nun about to engage in a romantic kiss, and pictures of inmates on death row. The company's logo served as the only text accompanying the images in most of these advertisements.
Benetton Group
Type Public (NYSE: BNG) Founded Treviso, Italy (1965) Headquarters Villa Minelli, Ponzano Luciano Benetton, Chairman Giuliana Benetton, Director Key people Gilberto Benetton, Director Carlo Benetton, Deputy Chairman Industry Clothing Products Complete list of Benetton brands Revenue €1,8 billion (2005) Employees 7,987 (2005) Website http://www.benettongroup.com/
The Group : Communication: innovation and vision In 2005, we launched the communication project to celebrate Benetton Group’s 40th anniversary, which will culminate in a grand event in Paris in October 2006 at the 22
prestigious Centre Pompidou, featuring both fashion and art and which will be designed by Fabrica. During the year, Benetton’s communication research center continued its multicultural and international activities with projects and events ranging from the global campaign to promote tourism in the Veneto region to Flipbook, the media art project encompassing nearly 200,000 animations and 15 million visitors (winning the Grand Prize at the Japan Media Art Festival), from promotion and graphic design for art exhibits to a documentary on the city of Shanghai for Swiss German television. •
The United Colors of Benetton campaign, photographed for Fabrica by David Sims, reaffirmed the brand’s values of color and youth with a decidedly modern flair.
Sisley asserted its reputation as a sexy, trendy brand in its Fall/Winter 2005 campaign, which was set in the streets of Naples and photographed by Terry Richardson. •
The success of the clothing collections in 2005 was also supported by communication, with a significant increase worldwide, up 16%, of coverage in fashion newspapers and periodicals.
In the world of new media, both the blog, benettontalk, designed to open up dialogue with online youth, and the new web site dedicated to the world’s media debuted during the year.
“Working for Benetton is a lot of fun. It’s interesting to see how the company has united clothing and values, fashion and color. As a photographer, I tend towards the essential, and interpreting the colors and weave of a fabric, bringing them together, and creating a fluid, modern image is a challenge that I face with great pleasure. In the Benetton campaign, I tried to give new light to products and issues such as the trademarks of the brand, one of the first to be truly ‘global’, with an unmistakable international image.”
23
David Sims, fashion photographer
Cultural and Social Activities
Benetton has a long history of attention to ethical values and involvement in social and cultural initiatives. Perhaps the most visible are our institutional campaigns, touching social themes of wide international significance and often in cooperation with renown international organisations. Our social commitment, in fact, goes beyond these campaigns, with initiatives of both international and local impact. These include, on an international level, the Leleque Museum in Patagonia, or the Pivano Library, dedicated primarily to American literature. Locally, the Benetton Foundation focuses on issues relating to the preservation and promotion of local heritage, reflecting the strong links which the Group has traditionally maintained with its territorial roots.
BRANDS
United Colors of Benetton. A global brand and one of the most well-known in the world, United Colors of Benetton has an international style that combines color, energy and practicality. The womenswear, menswear, childrenswear and underwear collections offer a total look for everyday, for work and for leisure, in the city and outdoors. 24
The brand is broadening its horizons, expanding into new areas of merchandise from the exclusive eyewear line (Dress Your Face!) to perfumes, from Home Collection to baby products. The above products are available in select specialized shops worldwide.
Undercolors is an extension of the Benetton brand, featuring underwear, beachwear and sleepwear collections, as well as accessories for women, men and children. A wide selection of recurring basic colors is enriched every season with the latest trends. Undercolors is available in its own chain of stores which now has more than 500 locations in thirty countries and in selected Benetton Shops.
Sisley This is the Group’s most trend-setting brand, at the forefront of fashion. Season after season, its bold, forceful collections full of fashion ideas set the trends for young, dynamic women and men. Its creative artists and sales team concentrate their efforts on its image and on strong-impact advertising campaigns.
Playlife is Benetton’s leisurewear label. Collections for men and women offer a casual yet sporty look designed to provide maximum comfort, freedom of use, unrestricted by any single sporting discipline. Footwear and accessories complete the collection reflecting the latest trends.
25
Killer Loop A brand with a strong "Street" connotation dedicated to young people, Killer Loop has become an icon for a dynamic lifestyle thanks to its assertive clothing and footwear ranges.
OBJECTIVE •
To chalk out the market share accure by Levi’s & Benetton.
•
To study the growth of sales of Levi’s & Benetton.
•
To study the Consumer Preference toward Levi’s & Benetton.
•
To thoroughly understand the distribution chhanel of Levi’s & Benetton
•
To predict emerging trends of Levi’s & Benetton
•
Find out the consumtion patteren of the cunsumer
•
To check out the avalibility of stoke in various area base on various types of outlet.
26
SCOPE To carry out market survey of customer perception for the use of the clothes of Levi’s & Benetton. For this purpose the geographical area selected is Delhi locality. Data will be collected through a questionnaire. In this research 50-75 people will be taken as sample for filling up the information required in questionnaire.
27
METHODOLOGY Technique of Data Collection:
To collect the data one may employ various
kinds of techniques of which commonly followed ones are: •
Questionnaire
In this project Questionnaire method and direct observation methods are used. •
In this research 50 people is taken as sample who was interested in fill the information required in questionnaire.
Technique of Analysis:
The commonly methods used for analyzing is average
mean.
Presentation: In commonly method used for presentation are graphs and pie chart. Tools Used: The common tools used for analyzing is Ms. Excel.
28
CHAPTER – II DATA REDUCTION & PRESENTATION
General Observations on Respondents
Age Group:
S. No. 1. 2. 3.
Age Group 18 – 25 25 - 35 35 and Above
Number of People 35 9 6
Percentage 70% 18% 12%
100% 80% 60% Age Group
40% 20% 0%
18 - 25
25 - 35
35 and above
Analysis: In the above graph most of the people belong to 18 to 25 age group. 29
Monthly Income:
S. No. 1. 2. 3. 4.
Monthly Income Less than 7000 7000 – 10000 10000 – 15000 More than 15000
Number of People 8 4 8 30
Percentage 16% 8% 16% 60%
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Monthly Income
Less than 7000
7000 10000
10000 15000
More than 15000
Analysis: This graph shows the monthly income of the current account holders. About 60% current account holders are belongs to the group of 15000 and above.
Specific Observations on Respondents 30
1. Do you wear branded apparels?
S. No.
Branded Apparel
Number of People
Percentage
1.
Yes
48
96%
2.
No
2
4%
Yes No
Analysis: This Graph shows that only 4% people do not wear branded apparels.
2. What brand do you wear the most? 31
S. No.
Brand
Number of People
Percentage
1.
Levi’s
20
40%
2.
Benetton
4
8%
3.
Others
26
52%
Levi's Benetton Others
Analysis: This Graph show that 52% people wear other brands, 40% people wear Levi’s brand and only 8% people wear Benetton brand the most.
3. Why do you prefer Levi’s product? 32
Rank according to your own opinion: 5 = Agree totally 4 = Agree 3 = Neither 2 = Agree partially 1 = Do not agree at all
100% 90% 80% 70%
5
60%
4
50%
3 2
40%
1
30% 20% 10%
yl e Li fe st
C
irc le
of f
rie
nd s
tio n ep ut a R
B
ra nd
na m
e
Sl og an
is e dv er t A
Sp on so rs hi p
m en t
ic e Pr
Q ua l it
y
0%
Analysis: This Graph shows about 68% people are totally agreed that its Quality is good, about 60% people are agreed that its Price is good, about 40% people think neither its Advertisement is good nor its bad, about 36% people think neither its Sponsorship is good nor its bad, about 28% people are agreed partially that its Slogan is good, about 60% people are totally agreed that its Brand Name is good, about 52% people are totally agreed that its Reputation is good, about 32% people are agreed that its common in their Circle of Friends, about 48% people are agreed that its Lifestyle is good. 4. Do you know about the e- shopping services provided by the following brand? 33
•
Levi’s
S. No.
Knowledge About
Number of People
Percentage
1.
E-shopping Service Yes
20
40%
2.
No
30
60%
Yes No
Analysis: This Graph shows that only 40% people know about the e- shopping services provided by Levi’s.
•
Benetton
34
S. No.
Knowledge About
Number of People
Percentage
1.
E-shopping Service Yes
20
40%
2.
No
30
60%
Yes No
Analysis: This Graph shows that only 32% people know about the e- shopping services provided by Benetton.
5. How frequent you do Shopping via Internet?
35
S. No.
Shopping via
Number of People
Percentage
Internet 1.
Always
4
8%
2.
Many a Times
2
4%
3.
Some Times
16
32%
4.
Never
28
56%
100% 80% 60% Shopping
40% 20% 0% Always
Many a Times Some Times
Never
Analysis: This Graph shows that 56% people never do shopping via Internet, 32% people do sometime, 4% people do many a times and 8% people do always. 6. Whose product range is better (in term of no. & size)?
36
S. No.
Is Product Range
Number of People
Percentage
1.
Better Yes
44
88%
2.
No
6
12%
Levi's Benetton
Analysis: This Graph shows that Levi’s product range is better because 88% votes are being gathered by Levi’s.
7. What do you associate the brand Levi’s with? Rank according to your own opinion: 5 = Agree totally 4 = Agree 3 = Neither 2 = Agree partially 37
1 = Do not agree at all
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Bo rin g
In no va ti v e Hi gh qu al ity Yo ut hf ul Tr ad i ti on al
Co ol
Tr e
nd y
5 4 3 2 1
Analysis: This Graph shows about 52% people are totally agreed that it is Trendy, about 48% people are agreed that it is Cool, about 36% people think its neither Innovative nor stale, about 52% people are totally agreed that it have High Quality, about 36% people think its neither Youthful nor old, about 40% people are agreed partially that it is Traditional, about 64% people do not agree at all that it is Boring.
8. What do you associate the UCB with? Rank according to your own opinion: 5 = Agree totally 4 = Agree 3 = Neither 2 = Agree partially 1 = Do not agree at all 38
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% in g
l
l
or B
Tr
ad
iti o
na
fu th
y
Yo u
H
ig h
qu
al it
iv e
l
ov at
oo C
In n
Tr
en
dy
5 4 3 2 1
Analysis: This Graph shows about 40% people are totally agreed and 40% people agree that it is Trendy, about 48% people are agreed that it is Cool, about 48% people are agreed that it is Innovative, about 48% people are agreed that it have High Quality, about 36% people are agreed that it is Youthful and 36% people think its neither Youthful nor old, about 28% people think its neither Traditional nor new and 28% people are agreed partially that it is Traditional, about 36% people are agreed partially and 36% do not agree at all that it is Boring. 9. Are you satisfied with the Services provided by? •
Levi’s
39
S. No.
Service Satisfaction Number of People
Percentage
1.
Yes
46
92%
2.
No
4
8%
Yes No
Analysis: This Graph shows that 96% people are satisfied with Service provided by the brand Levi’s. •
Benetton
S. No.
Service Satisfaction Number of People
Percentage
1.
Yes
88%
44 40
2.
No
6
12%
Yes No
Analysis: This Graph shows that only 64% people are satisfied with Service provided by the brand Benetton.
10. What is the level of Satisfaction about Services of both the brands? •
S. No.
Levi’s
Level of Service
Number of People
Satisfaction 41
Percentage
1. 2. 3. 4. 5.
Excellent Very Good Good Satisfied Poor
8 34 4 2 2
16% 68% 8% 4% 4%
100% 80% 60% Levi's
40% 20% 0% Excellent
Very Good
Good
Satisfied
Poor
Analysis: This Graph shows that 68% people think Satisfaction Level of brand Levi’s is Very Good.
•
Benetton
S. No.
Level of Service
Number of People
Percentage
1. 2. 3. 4. 5.
Satisfaction Excellent Very Good Good Satisfied Poor
2 16 16 12 4
4% 32% 32% 24% 8%
42
100% 80% 60% Levi's 40% 20% 0% Excellent
Very Good
Good
Satisfied
Poor
Analysis: This Graph shows that only 32% people think Satisfaction Level of brand Benetton is Very Good.
11. Which brand’s Showrooms you find more in most of the places?
S. No.
Brand’s
Number of People
Percentage
1.
Showrooms Levi’s
40
80%
2.
Benetton
10
20%
43
Levi's Benetton
Analysis: This Graph shows that only 20% people find more Benetton’s showrooms than Levi’s in most of the places.
12. How do you notice advertisements in the following media? Rank according to your own opinion: 5 = Agree totally 4 = Agree 3 = Neither 2 = Agree partially 1 = Do not agree at all
44
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% ia
O
ut do or m
ed
Ra di o
t In te rn e
M
ag az
in es
s
Ne w sp ap er
TV
5 4 3 2 1
Analysis: This Graph shows how frequent advertisements are being noticed in TV, Newspapers, Magazines, Internet Radio and Outdoor media.
13. How much influence does the advertisement have on your choice of Levi’sproduct?
S. No.
Influence of
Number of People
Percentage
1. 2. 3.
Advertisement Very much A lot Neither
4 24 4
16% 48% 8%
45
4. 5.
14 4
Little Very little
28% 8%
100% 80% 60% Influency
40% 20% 0% Very much
A lot
Neither
Little
Very little
Analysis: This Graph shows that 40% people get influenced A Lot by the advertisement of Brand Levi’s.
14. How much influence does the advertisement have on your choice of Benetton-product?
S. No.
Influence of
Number of People
Percentage
1. 2. 3. 4. 5.
Advertisement Very much A lot Neither Little Very little
4 24 4 14 4
4% 16% 32% 24% 24%
46
100% 80% 60% Influency 40% 20% 0% Very much
A lot
Neither
Little
Very little
Analysis: This Graph shows that 40% people get influenced A Lot by the advertisement of Brand Levi’s.
15. Do you prefer any other Brand Except? •
Levi’s
S. No.
Brand Levi’s
Number of People
Percentage
1.
Yes
50
100%
2.
No
0
0%
47
Yes No
Analysis: This Graph shows that no one is loyal toward Brand Levi’s.
•
Benetton
S. No.
Brand Benetton
Number of People
Percentage
1.
Yes
50
100%
2.
No
0
0%
48
Yes No
Analysis: This Graph shows that no one is loyal toward Brand Benetton.
•
Both
S. No.
Both Brands
Number of People
Percentage
1.
Yes
50
100%
2.
No
0
0%
49
Yes No
Analysis: This Graph shows that no one is Brand Loyal.
CHAPTER – III DATA ANALYSIS and FINDINGS On the basis of the above study following point have been analysed:
•
People who wear branded apparels, 70% of them belong from the age group of 18-25 and 60% of them get their monthly salary of more than Rs.15000.
•
40% people wear Levi’s brand and only 8% people wear Benetton brand, where as 52% people wear other brands. This shows that Levi’s has a very good market share.
50
•
Brand Levi’s Quality, Price, Brand Name, Reputation and Life Style is good, where as Advertisement, Sponsorship, Circle of Friends and Slogan is neither good nor bad.
•
40% people know about the e- shopping services provided by Levi’s and 32% people know about the e- shopping services provided by Benetton. This shows that people don’t have much knowledge about e- shopping service. Therefore they don’t do shopping via internet.
•
Levi’s product range is better than Benetton because 88% votes are being gathered by Levi’s.
•
People are agreed that Brand Levi’s is Trendy, Cool and has High Quality, neither agreed nor disagreed that it is Innovative and Youthful and disagreed that it is Traditional and Boring.
•
People are agreed that Brand Benetton is Trendy, Cool, Innovative, Youthful and has High Quality and disagreed that it is Traditional and Boring.
•
People are satisfied with both the brands but more satisfied with Brand Levi’s than Benetton.
•
Levi’s showrooms are more than Benetton in most of the places. This shows that Brand Levi’s have wider distribution network than Brand Benetton.
•
People mainly notice advertisement in T.V., Newspaper and Magazines and these advertisements have A Lot of influence on people choice.
•
Every one wears other brands except Levi’s and Benetton.
51
CHAPTER – IV SUMMARY & CONCLUSIONS a) Result of the study After conducting the marketing research and studying the current market trends, I would like to conclude that product being offered by the Levi’s Strauss & Co. and United Colors of Benetton were there in demand due to lack of awareness about the products among the
52
potential customer and high price, there sales has been affected, but they increase there number with better promotion structure and by reducing their price. Most of the customers are fully satisfied with the services provided by the Levi’s Strauss & Co. and United Colors of Benetton. Levi’s Strauss & Co. and United Colors of Benetton also provide e-shopping facility to improve their sales to make more customers. Levi’s Strauss & Co. provide quality product and have good reputation and brand name. Products delivered by Levi’s Strauss & Co. and United Colors of Benetton are Trendy, Cool, Youthful and have High Quality.
b) Limitation This work is subject to following limitation •
Due to lack of time 50 users had been studied. Thus the scope of study is limited in term of number of respondents.
•
The unavoidable errors associated with random sampling are also present in the study 53
•
There is possibility of bias in respondents’ response.
c) Suggestions & Scope for further Study On the basis of the above study it can be concluded that Brand Levi’s is better or more preferred than Brand Benetton in the market. To retain its position and status in the market the following points are suggested for Brand Levi’s:•
Levi’s Strauss & Co. should reduce there price a bit to attract more customers.
54
•
They should incur more expenditure on advertisement because advertisements have a lot of influence on people choice.
•
They should make people aware about the e- shopping service facilities provided by them.
•
They should make more innovative and youthful product.
To gain its position and status in the market the following points are suggested for Brand Benetton:•
United colors of Benetton should reduce there price to attract more customers.
•
They should make people aware about the e- shopping service facilities provided by them.
•
They should make their product range better in terms of number and size.
•
They should open more showrooms.
BIBLIOGRAPHY Website http://www.google.com/ http://www.levi.com/ http://www.benettongroup.com/ 55
http://www.wikipedia.com/
CHAPTER – V APPENDICS QUESTIONNAIRE Subject: - Consumer preference toward Levi’s Strauss & co. Vs United Colors of Benetton
56
I Gaurav Chhabra conducting a study on Consumer preference toward Levi’s Strauss & co. Vs United Colors of Benetton. Kindly read the information below: This Questionnaire is meant only for the academic purpose; the information will be kept secret and your kind response will be acknowledged with thanks. Please Put ( ) wherever required PERSONAL DETAILS:Name
: ________________________________________________
Address : ________________________________________________ Contact No. : ________________________________________________ Age group:18-25
25-35
35 and above
7000 to 10,000
10,000 to 15,000
Monthly Salary:Less than 7000 More than 15,000 _______________________________________________________________________ _ 1. Do you wear branded apparels? Yes
No
2. What brand do you wear the most? Levi’s
Benetton
Others____________________
3. Why do you prefer this product? Rank according to your own opinion: 5 = Agree totally 4 = Agree 3 = Neither 2 = Agree partially 57
1 = Do not agree at all 5
4
3
2
1
Quality * Price Advertisement Sponsorship Slogan Brand name Reputation Circle of friends** Lifestyle * By quality we mean the fabric. ** Circle of friends implies that you prefer the product as a result of friends and family consuming it. 4. Do you know about the e- shopping services provided by the following brand? v.
Levi’s Yes
vi.
No
Benetton Yes
No
5. How frequent you do Shopping via Internet? Always
Many a Times
Some Times
Never
6. Whose product range is better (in term of no. & size)? Levi’s
Benetton
58
7. What do you associate the brand Levi’s with? Rank according to your own opinion: 5 = Agree totally 4 = Agree 3 = Neither 2 = Agree partially 1 = Do not agree at all 5
4
3
2
1
Trendy Cool Innovative High quality Youthful Traditional Boring
8. What do you associate the UCB with? Rank according to your own opinion: 5 = Agree totally 4 = Agree 3 = Neither 2 = Agree partially 1 = Do not agree at all 5
4
3
Trendy Cool Innovative High quality Youthful Traditional Boring
9. Are you satisfied with the Services provided by? 59
2
1
vii.
Levi’s Yes
viii.
No
Benetton Yes
No
10. What is the level of Satisfaction about Services of both the brands? ix.
x.
Levi’s Excellent
Very Good
Satisfied
Poor
Good
Benetton Excellent
Very Good
Satisfied
Poor
Good
11. Which brand’s Showrooms you find more in most of the places? Levi’s
Benetton
12. How do you notice advertisements in the following media? Rank according to your own opinion: 5 = Agree totally 4 = Agree 3 = Neither 2 = Agree partially 1 = Do not agree at all 5 TV Newspapers Magazines Internet Radio 60
4
3
2
1
Outdoor media (Advertisement pillars etc) Other: ______ 13. How much influence does the advertisement have on your choice of Levi’sproduct? Very much
A lot
Little
Neither Very little
14. How much influence does the advertisement have on your choice of Benettonproduct? Very much
A lot
Little
Neither Very little
15. Do you prefer any other Brand Except? xi.
Levi’s Yes
xii.
No
Benetton Yes
xiii.
No
Both Yes
No
If Yes, then Which One? _______________________________________________________________________ _ 61
Suggestions/recommendations _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______
____________________ Signature (optional)
62
A STUDY ON CONSUMER PREFERENCE TOWARD UNITED COLORS OF BENETTON VS LEVI’S STRAUSS & CO.
Project Report Submitted in Partial Fulfillment Of Bachelor of Business Administration BBA 5th Semester To Guru Gobind Singh Indrapratha University, Delhi
Guide: Mr. Gopal
Submitted By: Gauarv Chhabra (0761371705)
IITM Nurturing Excellence
Institute of Information Technology and Management New Delhi – 110058 Batch (2005-2008)
CERTIFICATE
I, Mr. Gaurav Chhabra, Roll No. 0761371705 certify that the Project Report (BBA-310) entitled “A Study on Consumer Preference Toward United Colors of Benetton Vs Levi’s Strauss & Co.” is done by me and it is an authentic work carried out by me at Institute Of Information Technology And Management. The matter embodied in this project work has not been submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.
Signature of the Student Date:
Certified that the Project Report (BBA-310) entitled “A Study on Consumer Preference Toward United Colors of Benetton Vs Levi’s Strauss & Co.” done by Mr. Gaurav Chhabra, Roll No. 0761371705, is completed under my guidance.
Signature of the Guide: Date: Name of the Guide: Gopal Designation: Lecturer Address: Institution
of
Information
Technology & Management Countersigned
Director/ Project Coordinator
ACKNOWLEDGEMENT 2
I the undersigned, acknowledge with thanks the kind advice of Mr. Gopal for their tremendous encouragement to make this project who had not only their efforts in briefing me minutely but also advising me time to time about the Consumer Preference Toward United Colors of Benetton and Levi’s Strauss & Co.
I am also heartily gratitude and thankful of other software’s for their kind support.
Gaurav Chhabra
EXECUTIVE SUMMARY 3
This project is in partial fulfillment of the requirement for the award of Bachelors of Business Administration .This project is based upon the topic “A Study on Consumer Preference Toward United Colors of Benetton Vs Levi’s Strauss & Co.”. The research was done for UNITED COLORS OF BENETTON VS LEVI’S STRAUSS & CO., Clothing Company in North and West Delhi region for 2 months. Levi Strauss & Co. (LS&CO) is a privately held clothing company known worldwide for its Levi's brand of denim jeans. Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions: North Americas (LSNA), Europe (LSE)and Asia Pacific Division (APD). Benetton Group S.p.A. is an upscale global clothing brand, based in Treviso, Italy. Its core business is clothing with the casual line marketed as the "United Colors of Benetton", a fashion-oriented "Sisley" division, "Playlife" leisurewear, and "Killer Loop" streetwear brands. The main objective of this research is to find out the satisfaction level of consumer of Levi’s Strauss & Co. and United Colors of Benetton. Research has been conducted through the self-administered questionnaire. After the questionnaire was filled the data analysis is carried out by applying established theoretical concepts tools and techniques. Apart from that through various tools at my disposal I have been able to identify the important compenents under one factor and difference of perception of various factors between the two groups. Suggestions are also given based on the informal talks with people, open ended questions and from data analysis.
CONTENTS S. No.
Title 4
Page No.
1.
LIST OF TABLES
6
2.
LIST OF FIGURES
7
3.
LIST OF SYMBOLS
8
4.
LIST OF ABBREVIATIONS
9
5.
INTRODUCTION i.
Company Profile
10
ii.
Objective
23
iii.
Scope
24
iv.
Methodology
25
6.
DATA REDUCTION & PRESENTATION
27
7.
DATA ANALYSIS
49
8.
SUMMARY & CONCLUSIONS i.
Results of the Study
50
ii.
Limitations
51
iii.
Suggestions & Scope for further
52
Study 9.
REFERENCE/BIBLIOGRAPHY
53
10.
APPENDICES
54
LIST OF TABLES Table No.
Title
Page No.
1.
Number of Age Group
27
2.
Number of Monthly Income
28
3.
Number of people wear branded apparels
29
5
4.
Number of people wear brand the most
30
5.
Number of people prefer Levi’s product
31
6.
Number of people know about the eshopping i. ii.
7.
Levi’s
32
Benetton
33
Number of people doing Shopping frequent
34
via Internet 8.
Whose product range is better
35
9.
Number of people associate the brand
36
Levi’s with 10.
Number of people associate the UCB with
11.
Number of people satisfied with the
37
Services provided by i. ii. 12.
38
Benetton
39
Level of Satisfaction about Services i. ii.
13.
Levi’s
Levi’s
40
Benetton
41
Number of brand’s Showrooms people find
42
more in most of the places 14.
How does number of people notice
43
advertisements in media 15.
Influence of advertisement of Levi’s-
44
product on number of people choice 16.
Influence of advertisement of Benetton6
45
product on number of people choice 17.
Number of people prefer any other Brand Except i.
Levi’s
46
ii.
Benetton
47
iii.
Both
48
LIST OF FIGURES Figure No.
Title
Page No.
1.
Figure of Age Group
27
2.
Figure of Monthly Income
28
3.
Figure of people wear branded apparels
29
4.
Figure of people wear brand the most
30
5.
Figure of people prefer Levi’s product
31
6.
Figure of people know about the eshopping
7.
iii.
Levi’s
32
iv.
Benetton
33
Figure of people doing Shopping frequent 7
34
via Internet 8.
Whose product range is better
35
9.
Figure of people associate the brand Levi’s
36
with 10.
Figure of people associate the UCB with
11.
Figure of people satisfied with the Services
37
provided by
12.
13.
iii.
Levi’s
38
iv.
Benetton
39
Level of Satisfaction about Services iii.
Levi’s
40
iv.
Benetton
41
Figure of brand’s Showrooms people find
42
more in most of the places 14.
Figure of how does number of people notice
43
advertisements in media 15.
Figure of influence of advertisement of
44
Levi’s-product on number of people choice 16.
Figure of influence of advertisement of
45
Benetton-product on number of people choice 17.
Figure of people prefer any other Brand Except iv.
Levi’s
46
v.
Benetton
47
Both
48
vi.
8
LIST OF SYMBOLS
S. No.
Symbol
Nomenclature & Meaning
1.
$
Dollar
2.
&
And
3.
%
Percent
9
LIST OF ABBREVIATIONS
S. No.
Abbreviations
Full Name
1.
LS&CO
Levi Strauss & Company
2.
UCB
United Colors of Benetton
3.
GWG
Great Western Garment Co.
10
CHAPTER – I INTRODUCTION Clothing protects the human body from extreme weather and other features of the environment. It is worn for safety, comfort, and modesty and to reflect religious, cultural and social meaning. The practical function of clothing is to protect the human body from dangers in the environment: weather (strong sunlight, extreme heat or cold, and precipitation, for example), insects, noxious chemicals, weapons, and contact with abrasive substances, and other hazards. Clothing can protect against many things that might injure the naked human body. In some cases clothing protects the environment from the clothing wearer as well (example: medical scrubs).
A baby wearing many items of winter clothing: headband, cap, fur-lined coat, shawl and sweater.
11
According to archaeologists and anthropologists, the earliest clothing probably consisted of fur, leather, leaves or grass, draped, wrapped or tied about the body for protection from the elements. Knowledge of such clothing remains inferential, since clothing materials deteriorate quickly compared to stone, bone, shell and metal artifacts.
A Neanderthal clothed in fur
Denim, in American usage since the late eighteenth century, [1] denotes a rugged cotton twill textile, in which the weft passes under two (twi- "double") or more warp fibers, producing the familiar diagonal ribbing identifiable on the reverse of the fabric, which distinguishes denim from cotton duck. The word comes from the name of a sturdy fabric called serge, originally made in Nimes, France, by the Andre family. Originally called serge de Nîmes, the name was soon shortened to denim.[2] Denim was traditionally colored blue with indigo dye to make blue "jeans," though "jean" then denoted a different, lighter cotton textile; the contemporary use of jean comes from the French word for Genoa, Italy (Gênes), where the first denim trousers were made.
12
Denim as used for blue jeans, with a copper rivet to strengthen the pocket.
COMPANY PROFILE Levi Strauss & Co. (LS&CO) Levi Strauss & Co. (LS&CO) is a privately held clothing company known worldwide for its Levi's brand of denim jeans. It was founded in 1853 when Levi Strauss came to San Francisco, California to open a west coast branch of his brothers' New York dry goods business. Although the company began producing denim overalls in the 1870s, modern jeans were not produced until the 1920s. The company briefly experimented (in the 1970s) with employee ownership and a public stock listing, but remains owned and controlled by descendants and relatives of Levi Strauss' four nephews.
Levi Strauss & Co.
Type Private Founded 1853 Headquarters San Francisco, California John Anderson, CEO & President of Key people LS&CO Industry Clothing Website http://www.levi.com/
13
Organization Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions: Levi Strauss, North Americas (LSNA), based in the San Francisco headquarters; Levi Strauss Europe (LSE), based in Brussels; and Asia Pacific Division (APD), based in Singapore.The company employs a staff of approximately 8,850 people worldwide, and owns and develops a few brands. Levi's, the main brand, was founded in 1873 in San Francisco, specializing in riveted denim jeans and different lines of casual and street fashion. In the 1970s, Great Western Garment Co. (GWG), a Canadian clothing manufacturer, was acquired by Levi Strauss. GWG was responsible for the introduction of the modern stone washing technique, still in use by Levi Strauss. 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. Dockers was launched in 1986. Sold largely through department store chains, helped the company grow through the mid-1990s, as denim sales began to fade. Levi Strauss attempted to sell the brand 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 phone's cosmetic attributes are customisable at the point of purchase.
History Jacob Davis was a tailor who frequently purchased bolts of cloth from Levi Strauss & Co.'s wholesale house. After one of Davis' costumers kept purchasing cloth to reinforce torn pants, he had an idea to use copper rivets to reinforce the points of strain, such as on the pocket corners and at the base of the button fly. Davis did not have the required 14
money to purchase a patent, so he wrote to Levi suggesting that they both go into business together. After Levi accepted Jacobs' offer, on May 20, 1873, the two men received patent #139,121 from the United States Patent and Trademark Office. The patented rivet was later incorporated into the company's jean design and advertisements. Contrary to an advertising campaign suggesting that Levi Strauss sold his first jeans to gold miners during the California Gold Rush (which peaked in 1849), the manufacturing of denim overalls only began in the 1870s. Modern jeans began to appear in the 1920s. In the 1950s and 1960s, Levi's jeans became popular among a wide range of youth subcultures, including greasers, mods, rockers, hippies and skinheads. Levi's popular shrink-to-fit 501s were sold in a unique sizing arrangement; the indicated size was related to the size of the jeans prior to shrinking, and the shrinkage was substantial. The company still produces these unshrunk, uniquely sized jeans, but they don't sell very well. 1990s and later By the 1990s, the brand was facing competition from other brands and cheaper products from overseas, and began accelerating the pace of its US factory closures and its use of offshore subcontracting agreements. In 1991, Levi Strauss faced a scandal involving six subsidiary factories on the Northern Mariana Islands, a US commonwealth, where some 3% of Levi's jeans sold annually with the Made in the USA label were shown to have been made by Chinese laborers under what the United States Department of Labor called "slavelike" conditions. Cited for sub-minimal wages, seven-day work weeks with 12-hour shifts, poor living conditions and other indignities, Tan Holdings Corporation, Levi Strauss' Marianas subcontractor, paid what were then the largest fines in US labor history, distributing more than $9 million in restitution to some 1,200 employees. Levi Strauss claimed no knowledge of the offenses, then severed ties to the Tan family and instituted labor reforms and inspection practices in its offshore facilities. The activist group Fuerza Unida (United Force) was formed following the January 1990 closure of a plant in San Antonio, Texas, in which 1,150 seamstresses (primarily Latina) — some of whom had worked for Levi Strauss for decades — saw their jobs exported to Costa Rica. During the mid and late 1990s, Fuerza Unida picketed the Levi Strauss 15
headquarters in San Francisco and staged hunger strikes and sit-ins in protest of the company's labor policies. The company took on multi-billion dollar debt in February 1996 to help finance a series of leveraged stock buyouts among family members. Shares in Levi Strauss stock are not publicly traded; the firm is today owned almost entirely by indirect descendants and relatives of Levi Strauss, whose four nephews inherited the San Francisco dry goods firm after their uncle's death in 1902. Levi's bonds are traded publicly, as are shares of the company's Japan affiliate, Levi Strauss Japan K.K. In June 1996, the company offered to pay its workers an unusual dividend of up to $750 million in six years' time, having halted an employee stock plan at the time of the internal family buyout. However, the company failed to make cash flow targets, and no worker dividends were paid. In 2002, Levi Strauss began a close business collaboration with Wal-Mart, producing a special line of "Signature" jeans and other clothes for exclusive sale in Wal-Mart stores until 2006. Levi Strauss Signature jeans can now be purchased at several stores in the US, Canada and Japan. The company is now Wal-Mart's largest worldwide strategic partner, conforming to WalMart's business and labor practices. Levi Strauss & Co. closed 58 US manufacturing plants between 1981 and 1990, sending 25% of its sewing operations overseas. Levi's accelerated US plant closings through the 1990s, closing its last US domestic plant (in San Antonio, Texas) in January 2004. According to the New York Times, Levi Strauss leads the apparel industry in trademark infringement cases, filing nearly 100 lawsuits against competitors since 2001. Most cases center on the alleged imitation of Levi's back pocket double arc stitching pattern (U.S. trademark #1,139,254]). Levi's has sued Guess?, Esprit Holdings, Zegna, Zumiez and Lucky Brand Jeans, among other companies. By 2007, Levi Strauss was again said to be profitable after declining sales in nine of the previous ten years. Its total annual sales, of just over $4 billion, were $3 billion less than during its peak performance in the mid 1990s. After more than two decades of family ownership, rumors of a possible public stock offering were floated in the media in July 2007. 16
VALUES Our values are fundamental to our success. They are the foundation of our company, define who we are and set us apart from the competition. They underlie our vision of the future, our business strategies and our decisions, actions and behaviors. We live by them. They endure. Four core values are at the heart of Levi Strauss & Co.: Empathy, Originality, Integrity and Courage. These four values are linked. As we look at our history, we see a story of how our core values work together and are the source of our success.
VISION The story of Levi Strauss & Co. and our brands is filled with examples of the key role our values have played in meeting consumer needs. Likewise, our brands embody many of the core values that our consumers live by. This is why our brands have stood the test of time. Generations of people have worn our products as a symbol of freedom and selfexpression in the face of adversity, challenge and social change. They forged a new territory called the American West. They fought in wars for peace. They instigated counterculture revolutions. They tore down the Berlin Wall. Reverent, irreverent — they all took a stand. Indeed, it is this special relationship between our values, our consumers and our brands that is the basis of our success and drives our core purpose. It is the foundation of who we are and what we want to become:
People love our clothes and trust our company. We will market and distribute the most appealing and widely worn apparel brands. 17
Our products define quality, style and function. We will clothe the world.
CULTURE We offer a dynamic, performance-driven work environment, and a corporate culture characterized by ethical conduct and a commitment to social responsibility. We value and depend upon the diverse backgrounds, experience, knowledge and talents of all our employees. We also embrace and reflect the ethnic, cultural and lifestyle diversity of the communities where we live and work. Our employee programs and corporate initiatives distinguish us from others in our industry and in business.
Our Practices Just as we are a pioneer in apparel, we are a leader in areas of equal employment and safe workplace practices around the world. •
We were the first multinational apparel company to develop a comprehensive code of conduct designed to ensure that workers making our products anywhere in the world are safe, and treated with dignity and respect.
•
Our commitment to equal employment opportunity and diversity predates today's programs, beginning in the 1940s when we desegregated our factories in California.
Our Programs Our programs help employees respond to the demands of business and the needs of everyday life. •
We support employee volunteerism.
•
We were among the first companies to offer the employee benefit of flexible time off. We also support flexible work schedules and other options that help our employees better manage their workload and personal needs.
18
•
Our managers coach employees and help them set goals that will challenge them professionally and personally.
•
We offer a total compensation package that includes a competitive salary, shortand long-term incentive plans and a wide array of benefits.
BRANDS At Levi Strauss & Co., we market our products under leading brand names that are among the most successful apparel brands in the world. Our Levi's brand is one of the most widely recognized brands in the history of the apparel industry. From updating classics with the latest finishes, fabrications and colors, to reinventing five-pocket jeans, we are always creating new, innovative products. Learn more about each of our brands below.
Invented in 1873, Levi's jeans are the original, authentic jeans. They are the most successful, widely recognized, and often imitated clothing products in the history of apparel. Levi's jeans have captured the attention, imagination, and loyalty of generations of diverse individuals. As the inventor of the category, the Levi's® brand continues to define jeanswear with the widest range of products available, from quintessential classics, such as the famous Levi's 501 Original jean, to favorite fits and styles in our Red Tab™ and Premium collections.
The Dockers brand is the leader in providing stylish and comfortable casual wear. The brand continues to expand its offerings to provide men and women with clothes that offer versatility for an on-the-go lifestyle. Dockers khakis were first introduced in 1986 as the casual alternative to jeans and dress pants. The line has since expanded from men's casual pants to an entire wardrobe offering 19
of tops, pants, shoes, belts, outerwear and hosiery for men and women in more than 50 countries in every region of the world.
The Levi Strauss Signature brand was launched in 2003 exclusively for value-conscious consumers. The brand provides these consumers with high-quality, affordable, fashionable jeanswear and casualwear from a company and name they trust. The Levi Strauss Signature brand includes a collection of denim and non-denim pants, shirts, skirts, and jackets for men, women, and children. All Levi Strauss Signature apparel is designed with the high-quality construction and craftsmanship that makes Levi Strauss & Co. famous.
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United Colors of Benetton Benetton Group S.p.A. is an upscale global clothing brand, based in Treviso, Italy. The name comes from four members of the Benetton family who founded the company in 1965. Benetton Group is listed on the Borsa Italiana, the Frankfurt Stock Exchange and the New York Stock Exchange. From left: Luciano, Giuliana, Gilberto and Carlo Benetton
The career began in 1955 when Luciano Benetton, the eldest of four children, was only 20 years old and working as a salesman in Treviso. He saw sales for colourful clothes. He sold a younger brother's bicycle in order to buy the first second-hand knitting machine, and began to market a small collection of sweaters to local stores in the area of Veneto. The positive reaction to his designs was only the beginning of a solid start. Soon after, he asked his sister and his two younger brothers, Giberto and Carlo, to join him. In 1968, the Benettons opened their first store in Belluno and the year after in Paris, with Luciano as chairman, his brother Giberto in charge of administration, their younger brother Carlo running production, and Giuliana as a chief designer. Its core business is clothing with the casual line marketed as the "United Colors of Benetton", a fashion-oriented "Sisley" division, "Playlife" leisurewear, and "Killer Loop" streetwear brands. Their products include womenswear, menswear, childrenswear and underwear and they have recently expanded into toiletries, perfumes, exclusive watches and items for the home such as kitchen accessories and baby products.
21
The "United Colors" publicity campaign originated when photographer Oliviero Toscani was given carte blanche by the Benetton management. Under Toscani's direction, ads were created that contained striking images unrelated to any actual products being sold by the company. These graphic, billboard sized ads included depictions of a variety of 'shocking' subjects such as a deathbed scene of a man (AIDS activist David Kirby) dying from AIDS, a bloodied, unwashed newborn baby with umbilical cord still attached, two horses mating, close-up pictures of tattoos reading "HIV Positive" on the bodies of men and women, a collage consisting of genitals of persons of various races, a priest and nun about to engage in a romantic kiss, and pictures of inmates on death row. The company's logo served as the only text accompanying the images in most of these advertisements.
Benetton Group
Type Public (NYSE: BNG) Founded Treviso, Italy (1965) Headquarters Villa Minelli, Ponzano Luciano Benetton, Chairman Giuliana Benetton, Director Key people Gilberto Benetton, Director Carlo Benetton, Deputy Chairman Industry Clothing Products Complete list of Benetton brands Revenue €1,8 billion (2005) Employees 7,987 (2005) Website http://www.benettongroup.com/
The Group : Communication: innovation and vision In 2005, we launched the communication project to celebrate Benetton Group’s 40th anniversary, which will culminate in a grand event in Paris in October 2006 at the 22
prestigious Centre Pompidou, featuring both fashion and art and which will be designed by Fabrica. During the year, Benetton’s communication research center continued its multicultural and international activities with projects and events ranging from the global campaign to promote tourism in the Veneto region to Flipbook, the media art project encompassing nearly 200,000 animations and 15 million visitors (winning the Grand Prize at the Japan Media Art Festival), from promotion and graphic design for art exhibits to a documentary on the city of Shanghai for Swiss German television. •
The United Colors of Benetton campaign, photographed for Fabrica by David Sims, reaffirmed the brand’s values of color and youth with a decidedly modern flair.
Sisley asserted its reputation as a sexy, trendy brand in its Fall/Winter 2005 campaign, which was set in the streets of Naples and photographed by Terry Richardson. •
The success of the clothing collections in 2005 was also supported by communication, with a significant increase worldwide, up 16%, of coverage in fashion newspapers and periodicals.
In the world of new media, both the blog, benettontalk, designed to open up dialogue with online youth, and the new web site dedicated to the world’s media debuted during the year.
“Working for Benetton is a lot of fun. It’s interesting to see how the company has united clothing and values, fashion and color. As a photographer, I tend towards the essential, and interpreting the colors and weave of a fabric, bringing them together, and creating a fluid, modern image is a challenge that I face with great pleasure. In the Benetton campaign, I tried to give new light to products and issues such as the trademarks of the brand, one of the first to be truly ‘global’, with an unmistakable international image.”
23
David Sims, fashion photographer
Cultural and Social Activities
Benetton has a long history of attention to ethical values and involvement in social and cultural initiatives. Perhaps the most visible are our institutional campaigns, touching social themes of wide international significance and often in cooperation with renown international organisations. Our social commitment, in fact, goes beyond these campaigns, with initiatives of both international and local impact. These include, on an international level, the Leleque Museum in Patagonia, or the Pivano Library, dedicated primarily to American literature. Locally, the Benetton Foundation focuses on issues relating to the preservation and promotion of local heritage, reflecting the strong links which the Group has traditionally maintained with its territorial roots.
BRANDS
United Colors of Benetton. A global brand and one of the most well-known in the world, United Colors of Benetton has an international style that combines color, energy and practicality. The womenswear, menswear, childrenswear and underwear collections offer a total look for everyday, for work and for leisure, in the city and outdoors. 24
The brand is broadening its horizons, expanding into new areas of merchandise from the exclusive eyewear line (Dress Your Face!) to perfumes, from Home Collection to baby products. The above products are available in select specialized shops worldwide.
Undercolors is an extension of the Benetton brand, featuring underwear, beachwear and sleepwear collections, as well as accessories for women, men and children. A wide selection of recurring basic colors is enriched every season with the latest trends. Undercolors is available in its own chain of stores which now has more than 500 locations in thirty countries and in selected Benetton Shops.
Sisley This is the Group’s most trend-setting brand, at the forefront of fashion. Season after season, its bold, forceful collections full of fashion ideas set the trends for young, dynamic women and men. Its creative artists and sales team concentrate their efforts on its image and on strong-impact advertising campaigns.
Playlife is Benetton’s leisurewear label. Collections for men and women offer a casual yet sporty look designed to provide maximum comfort, freedom of use, unrestricted by any single sporting discipline. Footwear and accessories complete the collection reflecting the latest trends.
25
Killer Loop A brand with a strong "Street" connotation dedicated to young people, Killer Loop has become an icon for a dynamic lifestyle thanks to its assertive clothing and footwear ranges.
OBJECTIVE •
To chalk out the market share accure by Levi’s & Benetton.
•
To study the growth of sales of Levi’s & Benetton.
•
To study the Consumer Preference toward Levi’s & Benetton.
•
To thoroughly understand the distribution chhanel of Levi’s & Benetton
•
To predict emerging trends of Levi’s & Benetton
•
Find out the consumtion patteren of the cunsumer
•
To check out the avalibility of stoke in various area base on various types of outlet.
26
SCOPE To carry out market survey of customer perception for the use of the clothes of Levi’s & Benetton. For this purpose the geographical area selected is Delhi locality. Data will be collected through a questionnaire. In this research 50-75 people will be taken as sample for filling up the information required in questionnaire.
27
METHODOLOGY Technique of Data Collection:
To collect the data one may employ various
kinds of techniques of which commonly followed ones are: •
Questionnaire
In this project Questionnaire method and direct observation methods are used. •
In this research 50 people is taken as sample who was interested in fill the information required in questionnaire.
Technique of Analysis:
The commonly methods used for analyzing is average
mean.
Presentation: In commonly method used for presentation are graphs and pie chart. Tools Used: The common tools used for analyzing is Ms. Excel.
28
CHAPTER – II DATA REDUCTION & PRESENTATION
General Observations on Respondents
Age Group:
S. No. 1. 2. 3.
Age Group 18 – 25 25 - 35 35 and Above
Number of People 35 9 6
Percentage 70% 18% 12%
100% 80% 60% Age Group
40% 20% 0%
18 - 25
25 - 35
35 and above
Analysis: In the above graph most of the people belong to 18 to 25 age group. 29
Monthly Income:
S. No. 1. 2. 3. 4.
Monthly Income Less than 7000 7000 – 10000 10000 – 15000 More than 15000
Number of People 8 4 8 30
Percentage 16% 8% 16% 60%
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Monthly Income
Less than 7000
7000 10000
10000 15000
More than 15000
Analysis: This graph shows the monthly income of the current account holders. About 60% current account holders are belongs to the group of 15000 and above.
Specific Observations on Respondents 30
1. Do you wear branded apparels?
S. No.
Branded Apparel
Number of People
Percentage
1.
Yes
48
96%
2.
No
2
4%
Yes No
Analysis: This Graph shows that only 4% people do not wear branded apparels.
2. What brand do you wear the most? 31
S. No.
Brand
Number of People
Percentage
1.
Levi’s
20
40%
2.
Benetton
4
8%
3.
Others
26
52%
Levi's Benetton Others
Analysis: This Graph show that 52% people wear other brands, 40% people wear Levi’s brand and only 8% people wear Benetton brand the most.
3. Why do you prefer Levi’s product? 32
Rank according to your own opinion: 5 = Agree totally 4 = Agree 3 = Neither 2 = Agree partially 1 = Do not agree at all
100% 90% 80% 70%
5
60%
4
50%
3 2
40%
1
30% 20% 10%
yl e Li fe st
C
irc le
of f
rie
nd s
tio n ep ut a R
B
ra nd
na m
e
Sl og an
is e dv er t A
Sp on so rs hi p
m en t
ic e Pr
Q ua l it
y
0%
Analysis: This Graph shows about 68% people are totally agreed that its Quality is good, about 60% people are agreed that its Price is good, about 40% people think neither its Advertisement is good nor its bad, about 36% people think neither its Sponsorship is good nor its bad, about 28% people are agreed partially that its Slogan is good, about 60% people are totally agreed that its Brand Name is good, about 52% people are totally agreed that its Reputation is good, about 32% people are agreed that its common in their Circle of Friends, about 48% people are agreed that its Lifestyle is good. 4. Do you know about the e- shopping services provided by the following brand? 33
•
Levi’s
S. No.
Knowledge About
Number of People
Percentage
1.
E-shopping Service Yes
20
40%
2.
No
30
60%
Yes No
Analysis: This Graph shows that only 40% people know about the e- shopping services provided by Levi’s.
•
Benetton
34
S. No.
Knowledge About
Number of People
Percentage
1.
E-shopping Service Yes
20
40%
2.
No
30
60%
Yes No
Analysis: This Graph shows that only 32% people know about the e- shopping services provided by Benetton.
5. How frequent you do Shopping via Internet?
35
S. No.
Shopping via
Number of People
Percentage
Internet 1.
Always
4
8%
2.
Many a Times
2
4%
3.
Some Times
16
32%
4.
Never
28
56%
100% 80% 60% Shopping
40% 20% 0% Always
Many a Times Some Times
Never
Analysis: This Graph shows that 56% people never do shopping via Internet, 32% people do sometime, 4% people do many a times and 8% people do always. 6. Whose product range is better (in term of no. & size)?
36
S. No.
Is Product Range
Number of People
Percentage
1.
Better Yes
44
88%
2.
No
6
12%
Levi's Benetton
Analysis: This Graph shows that Levi’s product range is better because 88% votes are being gathered by Levi’s.
7. What do you associate the brand Levi’s with? Rank according to your own opinion: 5 = Agree totally 4 = Agree 3 = Neither 2 = Agree partially 37
1 = Do not agree at all
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Bo rin g
In no va ti v e Hi gh qu al ity Yo ut hf ul Tr ad i ti on al
Co ol
Tr e
nd y
5 4 3 2 1
Analysis: This Graph shows about 52% people are totally agreed that it is Trendy, about 48% people are agreed that it is Cool, about 36% people think its neither Innovative nor stale, about 52% people are totally agreed that it have High Quality, about 36% people think its neither Youthful nor old, about 40% people are agreed partially that it is Traditional, about 64% people do not agree at all that it is Boring.
8. What do you associate the UCB with? Rank according to your own opinion: 5 = Agree totally 4 = Agree 3 = Neither 2 = Agree partially 1 = Do not agree at all 38
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% in g
l
l
or B
Tr
ad
iti o
na
fu th
y
Yo u
H
ig h
qu
al it
iv e
l
ov at
oo C
In n
Tr
en
dy
5 4 3 2 1
Analysis: This Graph shows about 40% people are totally agreed and 40% people agree that it is Trendy, about 48% people are agreed that it is Cool, about 48% people are agreed that it is Innovative, about 48% people are agreed that it have High Quality, about 36% people are agreed that it is Youthful and 36% people think its neither Youthful nor old, about 28% people think its neither Traditional nor new and 28% people are agreed partially that it is Traditional, about 36% people are agreed partially and 36% do not agree at all that it is Boring. 9. Are you satisfied with the Services provided by? •
Levi’s
39
S. No.
Service Satisfaction Number of People
Percentage
1.
Yes
46
92%
2.
No
4
8%
Yes No
Analysis: This Graph shows that 96% people are satisfied with Service provided by the brand Levi’s. •
Benetton
S. No.
Service Satisfaction Number of People
Percentage
1.
Yes
88%
44 40
2.
No
6
12%
Yes No
Analysis: This Graph shows that only 64% people are satisfied with Service provided by the brand Benetton.
10. What is the level of Satisfaction about Services of both the brands? •
S. No.
Levi’s
Level of Service
Number of People
Satisfaction 41
Percentage
1. 2. 3. 4. 5.
Excellent Very Good Good Satisfied Poor
8 34 4 2 2
16% 68% 8% 4% 4%
100% 80% 60% Levi's
40% 20% 0% Excellent
Very Good
Good
Satisfied
Poor
Analysis: This Graph shows that 68% people think Satisfaction Level of brand Levi’s is Very Good.
•
Benetton
S. No.
Level of Service
Number of People
Percentage
1. 2. 3. 4. 5.
Satisfaction Excellent Very Good Good Satisfied Poor
2 16 16 12 4
4% 32% 32% 24% 8%
42
100% 80% 60% Levi's 40% 20% 0% Excellent
Very Good
Good
Satisfied
Poor
Analysis: This Graph shows that only 32% people think Satisfaction Level of brand Benetton is Very Good.
11. Which brand’s Showrooms you find more in most of the places?
S. No.
Brand’s
Number of People
Percentage
1.
Showrooms Levi’s
40
80%
2.
Benetton
10
20%
43
Levi's Benetton
Analysis: This Graph shows that only 20% people find more Benetton’s showrooms than Levi’s in most of the places.
12. How do you notice advertisements in the following media? Rank according to your own opinion: 5 = Agree totally 4 = Agree 3 = Neither 2 = Agree partially 1 = Do not agree at all
44
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% ia
O
ut do or m
ed
Ra di o
t In te rn e
M
ag az
in es
s
Ne w sp ap er
TV
5 4 3 2 1
Analysis: This Graph shows how frequent advertisements are being noticed in TV, Newspapers, Magazines, Internet Radio and Outdoor media.
13. How much influence does the advertisement have on your choice of Levi’sproduct?
S. No.
Influence of
Number of People
Percentage
1. 2. 3.
Advertisement Very much A lot Neither
4 24 4
16% 48% 8%
45
4. 5.
14 4
Little Very little
28% 8%
100% 80% 60% Influency
40% 20% 0% Very much
A lot
Neither
Little
Very little
Analysis: This Graph shows that 40% people get influenced A Lot by the advertisement of Brand Levi’s.
14. How much influence does the advertisement have on your choice of Benetton-product?
S. No.
Influence of
Number of People
Percentage
1. 2. 3. 4. 5.
Advertisement Very much A lot Neither Little Very little
4 24 4 14 4
4% 16% 32% 24% 24%
46
100% 80% 60% Influency 40% 20% 0% Very much
A lot
Neither
Little
Very little
Analysis: This Graph shows that 40% people get influenced A Lot by the advertisement of Brand Levi’s.
15. Do you prefer any other Brand Except? •
Levi’s
S. No.
Brand Levi’s
Number of People
Percentage
1.
Yes
50
100%
2.
No
0
0%
47
Yes No
Analysis: This Graph shows that no one is loyal toward Brand Levi’s.
•
Benetton
S. No.
Brand Benetton
Number of People
Percentage
1.
Yes
50
100%
2.
No
0
0%
48
Yes No
Analysis: This Graph shows that no one is loyal toward Brand Benetton.
•
Both
S. No.
Both Brands
Number of People
Percentage
1.
Yes
50
100%
2.
No
0
0%
49
Yes No
Analysis: This Graph shows that no one is Brand Loyal.
CHAPTER – III DATA ANALYSIS and FINDINGS On the basis of the above study following point have been analysed:
•
People who wear branded apparels, 70% of them belong from the age group of 18-25 and 60% of them get their monthly salary of more than Rs.15000.
•
40% people wear Levi’s brand and only 8% people wear Benetton brand, where as 52% people wear other brands. This shows that Levi’s has a very good market share.
50
•
Brand Levi’s Quality, Price, Brand Name, Reputation and Life Style is good, where as Advertisement, Sponsorship, Circle of Friends and Slogan is neither good nor bad.
•
40% people know about the e- shopping services provided by Levi’s and 32% people know about the e- shopping services provided by Benetton. This shows that people don’t have much knowledge about e- shopping service. Therefore they don’t do shopping via internet.
•
Levi’s product range is better than Benetton because 88% votes are being gathered by Levi’s.
•
People are agreed that Brand Levi’s is Trendy, Cool and has High Quality, neither agreed nor disagreed that it is Innovative and Youthful and disagreed that it is Traditional and Boring.
•
People are agreed that Brand Benetton is Trendy, Cool, Innovative, Youthful and has High Quality and disagreed that it is Traditional and Boring.
•
People are satisfied with both the brands but more satisfied with Brand Levi’s than Benetton.
•
Levi’s showrooms are more than Benetton in most of the places. This shows that Brand Levi’s have wider distribution network than Brand Benetton.
•
People mainly notice advertisement in T.V., Newspaper and Magazines and these advertisements have A Lot of influence on people choice.
•
Every one wears other brands except Levi’s and Benetton.
51
CHAPTER – IV SUMMARY & CONCLUSIONS a) Result of the study After conducting the marketing research and studying the current market trends, I would like to conclude that product being offered by the Levi’s Strauss & Co. and United Colors of Benetton were there in demand due to lack of awareness about the products among the
52
potential customer and high price, there sales has been affected, but they increase there number with better promotion structure and by reducing their price. Most of the customers are fully satisfied with the services provided by the Levi’s Strauss & Co. and United Colors of Benetton. Levi’s Strauss & Co. and United Colors of Benetton also provide e-shopping facility to improve their sales to make more customers. Levi’s Strauss & Co. provide quality product and have good reputation and brand name. Products delivered by Levi’s Strauss & Co. and United Colors of Benetton are Trendy, Cool, Youthful and have High Quality.
b) Limitation This work is subject to following limitation •
Due to lack of time 50 users had been studied. Thus the scope of study is limited in term of number of respondents.
•
The unavoidable errors associated with random sampling are also present in the study 53
•
There is possibility of bias in respondents’ response.
c) Suggestions & Scope for further Study On the basis of the above study it can be concluded that Brand Levi’s is better or more preferred than Brand Benetton in the market. To retain its position and status in the market the following points are suggested for Brand Levi’s:•
Levi’s Strauss & Co. should reduce there price a bit to attract more customers.
54
•
They should incur more expenditure on advertisement because advertisements have a lot of influence on people choice.
•
They should make people aware about the e- shopping service facilities provided by them.
•
They should make more innovative and youthful product.
To gain its position and status in the market the following points are suggested for Brand Benetton:•
United colors of Benetton should reduce there price to attract more customers.
•
They should make people aware about the e- shopping service facilities provided by them.
•
They should make their product range better in terms of number and size.
•
They should open more showrooms.
BIBLIOGRAPHY Website http://www.google.com/ http://www.levi.com/ http://www.benettongroup.com/ 55
http://www.wikipedia.com/
CHAPTER – V APPENDICS QUESTIONNAIRE Subject: - Consumer preference toward Levi’s Strauss & co. Vs United Colors of Benetton
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I Gaurav Chhabra conducting a study on Consumer preference toward Levi’s Strauss & co. Vs United Colors of Benetton. Kindly read the information below: This Questionnaire is meant only for the academic purpose; the information will be kept secret and your kind response will be acknowledged with thanks. Please Put ( ) wherever required PERSONAL DETAILS:Name
: ________________________________________________
Address : ________________________________________________ Contact No. : ________________________________________________ Age group:18-25
25-35
35 and above
7000 to 10,000
10,000 to 15,000
Monthly Salary:Less than 7000 More than 15,000 _______________________________________________________________________ _ 1. Do you wear branded apparels? Yes
No
2. What brand do you wear the most? Levi’s
Benetton
Others____________________
3. Why do you prefer this product? Rank according to your own opinion: 5 = Agree totally 4 = Agree 3 = Neither 2 = Agree partially 57
1 = Do not agree at all 5
4
3
2
1
Quality * Price Advertisement Sponsorship Slogan Brand name Reputation Circle of friends** Lifestyle * By quality we mean the fabric. ** Circle of friends implies that you prefer the product as a result of friends and family consuming it. 4. Do you know about the e- shopping services provided by the following brand? v.
Levi’s Yes
vi.
No
Benetton Yes
No
5. How frequent you do Shopping via Internet? Always
Many a Times
Some Times
Never
6. Whose product range is better (in term of no. & size)? Levi’s
Benetton
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7. What do you associate the brand Levi’s with? Rank according to your own opinion: 5 = Agree totally 4 = Agree 3 = Neither 2 = Agree partially 1 = Do not agree at all 5
4
3
2
1
Trendy Cool Innovative High quality Youthful Traditional Boring
8. What do you associate the UCB with? Rank according to your own opinion: 5 = Agree totally 4 = Agree 3 = Neither 2 = Agree partially 1 = Do not agree at all 5
4
3
Trendy Cool Innovative High quality Youthful Traditional Boring
9. Are you satisfied with the Services provided by? 59
2
1
vii.
Levi’s Yes
viii.
No
Benetton Yes
No
10. What is the level of Satisfaction about Services of both the brands? ix.
x.
Levi’s Excellent
Very Good
Satisfied
Poor
Good
Benetton Excellent
Very Good
Satisfied
Poor
Good
11. Which brand’s Showrooms you find more in most of the places? Levi’s
Benetton
12. How do you notice advertisements in the following media? Rank according to your own opinion: 5 = Agree totally 4 = Agree 3 = Neither 2 = Agree partially 1 = Do not agree at all 5 TV Newspapers Magazines Internet Radio 60
4
3
2
1
Outdoor media (Advertisement pillars etc) Other: ______ 13. How much influence does the advertisement have on your choice of Levi’sproduct? Very much
A lot
Little
Neither Very little
14. How much influence does the advertisement have on your choice of Benettonproduct? Very much
A lot
Little
Neither Very little
15. Do you prefer any other Brand Except? xi.
Levi’s Yes
xii.
No
Benetton Yes
xiii.
No
Both Yes
No
If Yes, then Which One? _______________________________________________________________________ _ 61
Suggestions/recommendations _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______
____________________ Signature (optional)
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