Product and Service Development: A Case Study of Levi's 501 Original Jeans

This presentation provides a case study of product and service development using Levi's 501 Original Jeans as an example. It covers the entire process from idea generation to commercialization, including marketing strategy, cost analysis, and product life cycle stages. The presentation also includes a competitive analysis of companies like DC Shoes and American Eagle Outfitters.

UNIT 22 PRODUCT AND SERVICE
DEVELOPMENT
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INTRODUCTION
 Product and service development is as series of step which includes
the conceptualization, development, design and marketing newly
created goods or services.
 Product development strategies are important to ensure value fort
potential customer as well as ensuring that there is demand and final
goods are the highest possible quality before take the product in
market.

SELECTED LEVI PRODUCT FOR THE PITCH – (501
Original jeans)
 Levi’s has introduced its 501 Original jeans as its new product of Levis.
 It has been selected as the product at introduction stage since the market of
this product is still getting widened.
 At the same time, it is still not disseminated as other products are, so it has
been cited as product at introduction stage.

OVERVIEW AND IDEA GENERATION
Overview of the company
 Levi's is an American company which is engaged in products like clothes, fashion
items, footwear etc. this came into existence in the year 1853.
Ideas generation-
 Levi's is an American shoe, dress or some other fashion products making organization.
The entity is working with its higher brand value.

IDEA'S SCREENING AND CONCEPT
DEVELOPMENT AND TESTING
Idea's screening-
 The idea of making shoe by using recycled plastic was found the most rational one and
promising too.
Concept development and testing-
 It is very much-needed to know the viability of a concept, with this regard the idea was
tested in the market on targeted population.
 People of young age group who are frequently buying the products were taken into
focus.

MARKETING STRATEGY
components
Segmentation The market is expected to get segmented on
the basis of geography, and some
demographical dynamics such as age, gender
etc.
Targetting The young age group will be our targeting
market. The youth consists both male and
female has to be targeted for selling new
products. The developing nations market are
to be kept as target.
Positioning To position the new product. Cost leadership
strategy is supposed to be used.

P4 OF MARKETING MIX
 Product- For product a well-articulated policy is being followed. There are more than
30 steps are taking place to complete products.
 Price- The price strategy of the entity is dynamic in nature. It is offering mid ranged
pricing. So can get middle and upper middle class customers.
 Place- the place strategy of Levi's is geographically aimed. The organization is
having a great supply chain. At the same time around 15000 franchise stores and
3500 outlets across the globe.
 Promotion- There are number of methods are being used for carrying out promotion.
For instance TV, magazine, newspaper etc.

BUSINESS ANALYSIS

COMPETITIVE ANALYSIS-
DC shoes company American Eagle outfitters Levi's plc
Products Footwear, snowboards,
apparel.
Clothing, lifestyle products,
accessories, retail items etc.
Jeans, different types of cloths,
footwear etc.
Current status Owned by parent
company Quicksilver.
Owned by Retail Ventures. The company is having some
subsidiaries such as Levi Strauss Japan,
Dockers etc.
Revenue Around 10 million USD. 375.9 corers USD in the year
2020.
It has been around 5.764 billion USD
for the year 2021.

SWOT
Strengths-
 Great brand value will help to introduce new shoes made by recycled plastic.
 vast market grab, around 60 manufacturing units in USA.
Weaknesses-
 Heavily depended on independent producers. Which is around 97%.
 Product duplicity is also there.
Opportunities-
 Having good opportunities to hike its market share.
Threats-
 There may be some ethical issues such as plastic waste dissolution.

COST, EXPECTED SALES REVENUE AND EXPECTED
PROFIT-
particulars Amount (in USD)
Net Revenue form Sales 10,00,000
Row material acquisition 125000
Acquisition of new plant and machinery 100000
Labour cost 130000
Manufacturing cost 123000
Depreciation 10000
Marketing cost 26000
Preliminary cost 36000
R&D expenditures 20000
Packing expenditures 5000
Distribution 6000
Other expenditures 30000
Total cost 611000
Net Expected revenue 389000

PRODUCT DEVELOPMENT- SAMPLE/
PROTOTYPE/ TEST MARKETING-

COMMERCIALIZATION
MONITORING AND EVALUATION-
Commercialization-
 Levi's is having more than 15000 franchise and around 3500 outlets. So for commercialization
these all channels will be used.
Monitoring and evaluation-
 The newly developed product will be evaluated on regular interval. With this regard, some KPIs
are to be used.

STAGES OF PRODUCT LIFE CYCLE-
Introduction-
The new product will introduce in market when rises in demand and popularity of recycling products.
 Growth
 When the product is successfully navigates through the market introduction it helps to enter the
growth stage of life cycle then it is also related to the growing demand which promote an
increasing in production.
Maturity
 There are some products such as Mullet Sneakers and Mid Sneakers are now standing on their maturity stage.
Decline stage
 Indi Wish Sneakers of Levi's are not pouring on the amount of profit and revenues. This product is now facing
declining stage.

REFERENCES
 Chang, W., 2019. The joint effects of customer participation in
various new product development stages. European Management
Journal. 37(3). pp.259-268.
 Galler, M., et al. 2022. Listening to children voices in early stages of
new product development through co-creation–Creative focus group
and online platform. Food Research International. 154. p.111000.
 Kumar, N. and Allada, V., 2022. Assessment of risk propagation
during different stages of new product development
process. Management Science Letters. 12(3). pp.165-176.