A COMPARATIVE STUDY OFLEVI’S & PROVOGUE

Submitted to:Prof. Subir Guha

Submitted by:Gaurav Gupta - 26Joby Joseph - 30Nikhil Mahajan – 41Piyush Kharbanda- 43Tarun Kapila - 82Manish kamboj -Varun Kundra - 84

CURRENT RETAIL SCENARIO

The retail trade business in India is estimated to be over 10% of the GDP.

The share of the organized segment with formats like multi-brand stores, malls, and company owned single brand stores is only 3.5%

Demand for readymade garments in rural India is expected to increase at a CAGR of 16.5% during 2008-2010.

Men’s apparel industry will increase at a CAGR of 14.86% during the two-year period from 2008 to 2010.

Increasing at a CAGR of 25%, branded apparel industry for women is expected to hit Rs. 18,351 Crore by 2010.

Provogue stands for fashion and not pure apparel.

Its designs are cutting edge and radical, which epitomises its mantra "Redefining Fashion“

The company was launched in March 1998 & and within a short span of 10 years, it has established a strong brand identity.

Its attributes are : - Bold and Iconic- Style ,Contemporary Fashion, Innovative & Change , First mover and Newsworthy

Won many awards for its fashion and brand image.

The distribution channel comprises of a mix of company owned stores called as(Provogue Studio) and a network of national chain stores and Multi Brand Outlets (MBO).

Men's wear contributes 60% of the total sales, while women's wear and accessories 40%

It has more than 150 stores across more than 20 cities, it has recently added 20 small stores n 10 mega stores to its chain.

KEY STRENGTHS: Fashionable designs & vast product portfolio Garment manufacturing Strong brand building capabilities Multiple distribution formats

Founded over 160 years ago (1853) in San Fransisco (U.S.) by Levi Strauss

Levi Strauss & Co. is among the world’s largest brand-name apparel marketers, employing over 10,000 persons worldwide.

Levi Strauss markets its apparel products under the Levi’s® Dockers® and Levi Strauss Signature® brands in over 110 countries cross the world

From updating classics with the latest finishes, fabrications and colors, to reinventing five-pocket jeans, they are always creating new, innovative products.

Recently, Levi's has launched its iPod compatible jeans in India.

The brand won the coveted 'Rising Star Brand of the year‘ award at the 5th Annual Images Fashion Awards 2005.

Levi Strauss is also expanding the number of Levi’s stores from 170 to 250, across India.

Company believes in ‘think globally, but act locally’

RESEARCH OBJECTIVES

What are the current market trends?

What are the various challenges and opportunities for the industry?

Which factors is driving growth in the sector?

What is the segment-wise performance of the women apparel industry?

What is the perception of customers about these 2 brands i.e Levi’s & Provogue?

RESEARCH DESIGN

SOURCE OF INFORMATION:

Secondary data Primary data in form of Questionnaire & direct interviews

Sample Size:

200 respondents, with different age group & profession

Sampling Technique : Random sampling

Questionnaires were filled at various malls in areas of Rajouri, Saket, Rohini.

FINDINGS & DATA ANALYSIS

Question 1

Which brand you prefer?

This question is to know what the targeted group is for both the

company

0

5

10

15

20

25

30

18-25yrs 26-32yrs 33-42yrs 43-60yrs

Levi's

Provogue

Question 2How do you rate these retail outlets in terms of approachability?

0

5

10

15

20

25

30

Very easy easy ok difficult verydifficult

Levi's

Provogue

This question is to know the distribution network of both the company.

0

5

10

15

20

25

30

35

Yes No Yes both No for both

Levi's

Provogue

Question 3Do you like to go for online shopping?

Levi’s claim their online shopping effectiveness in the world wide. This question is to know success of both in India.

Question 4How will you rate Levi or Provogue in following parameter?

0

10

20

30

40

50

Levi's Provogur

Professionalism ofsalesrepresentative

Responsibility of SR

Effective Communication

Product range and color

Maintainance of garment

Handling ofproblems/complaints

a) Professionalism of Sales Representatives

b) Responsiveness of Sales Representatives

c) Effective Communication

d) Color & logo

e) The maintenance of the garment

f) Handling of problems /complaints

g) Stock Availability

h) After sales behavior

i) Completeness of delivery (delivered goods matched your

order)

j) Delivery Quality & Reliability

The parameters are the following:-

CONCLUSION

Both brands are concentrating more on young generation. They target mostly to the age group of 18-25years. Their second most targeted customers are working women. As this group is earning more than ever in these days, so they confident with their strategy.  

MAJOR CHALLENGES   Distribution Network Configuration: Number and location of suppliers, production facilities, distribution centers, warehouses and customers.  Distribution Strategy: Centralized versus decentralized, direct shipment, Cross docking, pull or push strategies, third party logistics.  Information: Integrate systems and processes through the supply chain to share valuable information, including demand signals, forecasts, inventory and transportation.  Inventory Management: Quantity and location of inventory including raw materials,work-in-process and finished goods.  

RECOMMENDATIONS FOR EFFECTIVE SUPPLY CHAIN    Eliminate disconnects (manual handoffs, redundant data entry) that lead to delays and errors through integration and process redesign and improvement  Empower personnel with real-time information, analytics, and automatic workflow relevant to their responsibilities  Achieve a lower total cost of ownership through the ability to seamlessly integrate legacy systems into CRM, SCM, and ERP solutions.  

THANK

YOU