I need you to answer me : 4 p's (price,product,place and promotion) strategy and target market and positing statement from the following case

Levi Strauss & Company

Levi's 501 Red Tab Jeans

Levi Strauss & Co is a huge privately owned company founded by Levi Strauss in 1853. Originally Levi Strauss was a dry goods business that expanded into jeans in 1870. The rest is history! That said, recent history has not been that kind to the company.

Levi's has seen its ups and downs over the years but remains a formidable brand today Worldwide sales in 2014 amount to $4.8 billion (compared to $7 billion in the early nineties) and the company presently carries about $2 billion of debt. Year-to-year the company is producing a reasonable profit so financial issues have been dealt with effectively. To save money all products are now made in Latin America or Asia.

The company markets three product lines. Levi's 501 Red Tab jeans (and other jean lines) are the primary brand. Dockers are defined as "stylish and comfortable casual wear" for men and women. Since 2003 Levi has partnered with Wal-Mart on a line of jeans called Levi Strauss Signature jeans, a fashionable line of jeans offered at discount prices and sold exclusively in Wal-Mart. Levi Strauss is one of Wal-Mart's largest strategic partners; a situation that can be good or bad. Should Wal-Mart decide to terminate the partnership agreement Levi could quickly lose about 15% of its annual sales.

By product line Levi jeans dominate company sales:

Product Line

$ Sales

% of Sales

Levi's Jeans

3.36 billion

70%

Dockers

0.72 billion

15%

Levi Strauss Signature

0.72 billion

15%

Total

4.80 billion

100%

The Levi Brand

Levi's is one of the world's largest brand name apparel marketers. No other apparel brand has a similar global presence in the jeans market. There was a time when Levi's had iconic brand status with youth. In fact, it is a brand that all baby boomers grew up on and are probably still wearing today. That's good but ask any teenager about jeans and they will tell you they "won't be caught dead wearing the same jeans as mom and dad." But millennials also believe in authenticity and no brand offers more authenticity than Levi's based on its rich history. So, in marketing parlance there are two sides to the story. Younger people will buy the brand if properly motivated!

Much of Levi's long term success is attributed to three core attributes. Essentially, it is a brand that scales across lifestyle and genderit appeals to a broad customer base. At the core of the brand is authenticity. Originally a jean built-to-last for coal miners the brand became a staple of working class people everywhere. Today, "authenticity" is a buzzword many brands throw around but a word that Levi's owns. Apparently, the more authentic a brand is, the more likely people will become advocates for the brand. This principle holds strong among influential young consumers.

The second core attribute is quality. For example, the rivets on the jeans are a standard around the world, and the signature red-stitched selvage and double-needle stitching are superior design details. Over the years many celebrities have worn Levi's to form a connection with an audience the brand was targeting.

Finally, Levi's firmly believes in integrity. Fads may come and go but that is not the game Levi's wants to play. Its position is simple: integrity is more important than trend. It's a long term view that often costs the company in the short term. For example, in the early 2000s Levi's didn't participate in the fashion trend toward coloured denim for women and tailored jeans for men, Sales plummeted!

The Market

The jeans market is segmented by gender and price. Jeans are marketed separately to women and men largely based on different buying criteria each gender exhibits. For example, fit and flattering look are more important for females while comfort and price are more important to males. By market, women account for 60% of sales, males 40%.

The overall jean market in Canada is worth $1.2 billion annually.Regular Levi's Red Tab jeans reside in the mid-market segment which accounts for 65% of the market. All brands are priced between $49 and $59. The mid-market segment is in trouble as consumers move either up and down in the market. The Levi Strauss Signature brand is in the value segment; a segment that accounts for 20% of sales and is growing by +5% a year. Value conscious shoppers flock to Wal-Mart! Value brands and private label brands offered by discounters are in the $29 to $39 range and even lower when on sale. The premium segment offers prices higher than $75, accounts for 15% of sales, and includes designer label brands like Guess and Calvin Klein and some new upscale brands like True Religion and Citizens of Humanitybrands only sold in upscale retail outlets. This segment is growing by +5% as well.

The Competition

The good news for Levi's is their leadership position in the global market. Considering all segments, Levi's leads with a 5.3% market share. VF, the makers of Lee and Wrangler jeans is second with 4.9% market share.

But, if only the mid-market segment in Canada is considered, market shares increase for all brands but the relative position of the brands is different. The primary competitors in the mid-market segment are Lee Jeans, Wrangler Jeans, and GWG jeans. GWG is owned by Levi Strauss in Canada. By brand, the combination of Lee and Wrangler lead with 30% market share followed by Levi's and private label brands, both with 25% market share.

The mid-market segment is worth $780 million (retail). With a market share of 25% and considering distributor markups, Levi's generates about $160 million in sales revenue. As the Signature business grows, Levi's runs the risk that it will cannibalize sales of the higher-priced Red Tab jeans. That's a trade-off the company does not wish to make.

The popularity of activewear (often referred to as the Lululemon phenomenon) has had a negative impact on denim jean sales.The activewear market comprised of yoga pants and other related products is estimated to be worth $1-billion in Canada. Any purchase in that segment is potentially a lost purchase in the jeans market.

Levi's has to figure out what to do next. Should it lower the price of Levi Red Tabs? Should it target a younger audience or remain broad-based age-wise? Should it pursue partnerships with other retailers? Historically its advertising message has focused on "authenticity"is it time for a change in message and what media should communicate it? Should it develop a more comprehensive e-commerce strategy?

Levi's wants to expand its Canadian market share and sales revenue in the mid-market segment at a reasonable pace. What direction should it take? You have a promotional budget of $1,5 Million dollars to spend.