In: Operations Management
Analyze Levi Straus, Inc. based on market-driven and corporate-driven social initiatives.
Company overview of Levi Straus Inc.
Levi Strauss invented the blue jean nearly 150 years ago due to the need for work pants that could hold up under rougher conditions, hence Levi Strauss along with a tailor Jacob Davis created the first jean. Today Levi Strauss & Co. is a global leader in jeanswear. The company is head quartered in San Francisco with a net revenue of $5.6 billion and a employee size of 14,400 people worldwide.
Social Initiatives
1. Market Driven Social Initiatives: Levi Straus Inc has conducted many cause promotions to support the community that is within the area in which it is located. One of the cause promotion that is evident in the company is the provision of financial incentives to its supplier and buyers of the garments. With regards to manufacturing Levi's has decided to do mass customization for their customers. The mass customization results in satisfying customer needs and saving costs at the same time by producing in bulk. In 2013 Levi's held a series of concerts along the oldest railway route with stops in small towns. In 2009 Levi's stirred its viewers with an expertly crafted and shot beautifully campaign "Go Forth".
2. Corporate Driven Social Initiatives: Levi's has publically committed to reducing its greehouse gas emission to 40% by 2025. It is constantly investing in the lives of the workers at the contract factories where the clothing is made. The company is outspoken about its support for gun control and was an early advocate for the rights of its HIV positive employees. Levi's also offers a generous parental leave policies which is upto 16 weeks for new mothers and 8 weeks for father and adoptive parents. The company has been sharing its profit with the community since it was founded in 1853. Today they invest a portion of their annual earnings back into the communities they serve. The company is also taking bold stands on social issues that align their core values. During elections employees get paid time off to vote and connect with voter engagement volunteer opportunities. Among the actions Levi's is training its employees to be effective advocates for responsible water stewardship and combatting climate change. Levi Strauss Foundation has long been and will continue to be vocal supports of equality and non-discrimination.
Describe how the mission statements of all partners are related to the company’s mission statement:
Levi's Strauss has partnered with Interntional Finance Corporation (IFC) on climate goals. The company has announced signing $2.3 million co-ooperation agreement with the IFC in order to help the company reach its targets on reducing Greenhouse gas emission and water use in its supply chain. Levi's has also partnered with the textile technology start up EvrNu to create the world's first jean using five discarded t-shirts to make new fiber. The cutting edge method not only converts into renewable fiber, it also uses 98% less water than virgin cotton products. In its latest partnership with Japanese online fashion empire Zozotown, Levi's brand is offering a way to shop for jeans online based on their actual size dimensions. All the above partnerships reflect the company's brand image of being authentic, social and original.
Target Market: Levi's traditional target market included males between the ages 15 and 25. However there newer campaigns like "It's wide open" was designed to attract men upto 34 years of age. The campaign was to engender popularity among trend setting, jeans wearing youth and to increase its market share in the highly competitive denim category. Their intial wide-leg jeans campaign "Make Room" targeted the youth in an attempt to gain popularity and loyalty. Because the wide-leg style evolved from the skate boarding craze generated by this age group it seemed appropriate.