Acquisition project | Levi's Strauss & Co

Product Brief:

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Levi's has been operating in India for more than 20 years primarily through offline stores (Franchise & Own Stores). Since the past 5 years its has also grown significantly in the e-commerce space, mainly through prominent marketplaces like Myntra, Flipkart, etc. It started its own brand website in 2019, but only started scaling it post covid. In the past 3 years, it has been able to generate 10% business share in online through its website, and continues to scale even further.

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For the future, Levi's plans to go DTC first, mainly through its App, achieving a contribution of ~60% of business share. The current share stands at 8%. The product has found a Product Market Fit, since the 8% of business share is coming through pure organic, customer pull. The next step for us is to get into an early stage operations scale-up.

Understanding the Product
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​Where is the product available?:

Levi's India App is available both on iOS & Android App Store.

User Journey:

The product has a basic e-commerce user flow. Covering essential hygiene features for buying a Levi's product online.

• Discovery Page (Includes Homepage banners, navigation, merch.)
• Product Listing Page
• Product Display Page (Includes essential features helping user to make a decision - Images, Description, Size Guide, Reviews)
• Cart Page
• Payment (Includes options like UPI, COD, Cards, CredPay, Amazon Pay, Wallets)

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Blockers:​

1. Currently there's no WOW moment withing the app, which hooks the customer to know why to keep the app on your mobiles
2. Organically Levi's App is not getting ranked in the first fold, even through its brand match searches
3. There is no organic discovery of the app on Levi's website

Understanding the User

User Research Objective: Acquisition Strategy.
1. Trying to understand what moves the customer to buy from a particular brand, and specially online.

2. Second thing, why would they keep a brand specific app on their phone - what motivates them.

Questions:

1. How often do you shop online?

2.What brands do you buy from?

3.What factors do you consider when you are buying online?

4.Which platforms do you generally use to buy?

5.What shopping apps do you have on your phone, why?

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Summary of the User responses:

Customers have been users of Levi's in the past, but specially through offline stores. There's lack of trust when it comes to buying Levi's online.

Blockers:

1. They have not had great product experience when bought from Marketplaces like Amazon.

2. Customers see Levi's as a traditional brand, mainly for denims, high priced, non-trendy but a staple.
3. Users prefer buying Jeans after trying on, to ensure to get the right fit

Consumer Segments:

1. Fashion Seekers & Budget Stylists: Fashion Led shoppers who like staying on top of the latest trends. Open to engaging with multiple brands, and categories, depending on what's trending. Basket value is largely driven by volume vs cost.

2. The functionalists: Typically low spenders that look for functional, comfortable products that can transcend, the multiple facets of their lives. Goal: Often use denim as a basis for a look that can be elevated through key statement pieces or accessories

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3. The Brand Loyalists: Stick to one brand, which they have been using for a long time. Get the same fit, different shades. Do not want to try newer fits or new brands.

Choosing the Ideal ICP basis the ICP prioritization framework:

1. Adoption Curve - How easily users adopt the product?
2. Frequency of Use - How frequently is the product used by the user?
3. Appetite to Pay - Do they even have the money in pockets to pay for the product?
4. Total Addressable Market - Sizeable TAM to be targeted
5. Distribution Potential - How quickly and sustainably can we reach these users?

Market Players & Key Competitors:​

1. Jeans is the primary category of Levi's.
2. 1. For jeans keyword - Levi's website organically ranks 6th.
   2. For jeans for men it ranks first organically. Men's category make-up for >70% of Levi's online sales
   3. Marketplaces are a bigger competition to Levi's than other brands
   4. 1. 1. Myntra, Ajio, Nykaa continue to bid of generic & Levi's keywords taking up impression share of upto 25% in branded keywords
   5. Upcoming D2C brands like Rare Rabbit, Snitch are also emerging to be direct competitors to Levi's
   6. 1. 1. Their core proposition is quality, style and trends respectively

Understanding the Ceiling:

1. Total Addressable Market:
   Number of Users: 34 Crores
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Using Top Down Approach:

2. Serviceable Addressable Market
   Levi's products has a higher AVU vs other brands.
   Considering AVU of ~Rs. 1700 online vs the current average AVU online fashion is ~Rs. 1000.
   Assuming only 40% of the TAM comes under SAM, making our SAM as 8600714
   Hence, Market Revenue Opportunity = Rs. 233,939,442,560
   
3. Serviceable Obtainable Market
   Assuming Levi's has a market share of 10% in the overall online shopping market
   SOM: Rs. 23,393,944,256
   

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Core Value Proposition:
Core Value of Levi's product is to provide comfortable, long-lasting clothes which are sustainable and always in-trend.

Core Value of the Levi's App is to provide users with a priority, trusted, personalized experience.

1. Personalized Experiences - Tailor Shop experience within the app, for any alteration, or customization required. (For e.g. Patches on jackets, 2 hours alteration with pick-up & drop)

2. Loyalty - 2X loyalty points earning & redemption to shop via App

3. On-call Stylists - Helping you to style functional as well as trend pieces

Designing Acquisition Channels:

Both set of Levi's customers spend the most time on Social media, hence instagram, snapchat & facebook become the most important channels of acquisition.

Organic / Google Search is again very important due to Levi's strong brand pull, having correct SEO content is important to gain impression share and stay relevant.

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Step 1: Jobs to be done:​

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Organic Channels:

Top Keywords in each bucket, which are high on user behavior. We see that Levi's brand has a higher recall and the monthly searches for it are significantly higher. SEO will play an important role to organically rank for own keywords since domain authority will be higher.
Search ads will be required to capture generic keywords faster.

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While the current business is coming through its existing base, we can do the below without spending any marketing bucks to get users on to the app.

1. Leverage the Levi's India Website -
2. 1. The website gets 75K daily traffic, having an app banner with an exclusive sale call-out or promo will drive at least a small base to download the app
      

1. Have a app landing page on website this will help to rank on below search keywords: levi app, levi's app download, app levis, levi strauss app, etc
2. Leverage Levi's own owned & flagship stores - Levi's consumers still shop mainly through stores, having a QR code on checkout / Omni experience like Decathlon will drive users to its app. This is also beneficial to us from 'Save the sale' perspective

Paid Advertising:

Use both Google & Meta to run CPI campaigns (Cost Per Install)
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Google Search Ads:

Bid for app landing page on below three buckets of keywords, with a goal of app downloads.

1. Brand Match
2. Brand + Product Match
3. Brand Broad Match

​Meta Ads (Facebook & Instagram)

1. For Fashion Seekers, use top of the funnel content:

Target Audience:

• Age - 16-24
• Living in Tier 1 & 2
• Male & Female
• Interests in brands like Rare Rabbit, Snitch, H&M, NewMe, etc.;
• Also In-Market Audience
  
  Content Example 1: Lollapalooza event GenZ influencers - Use the Lolla concert video ads which are fun, show Levi's in a fashion worthy moment and worn by influencers who they feel are fashion forward.
  
  Video Reference 1

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Copy: Live in Levi's - a moment as iconic as the Lollapalooza

1.1 For Fashion Seekers: Making the tailorshop cool only on Levi's App

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Copy: Choose how you like to wear you denim; express yourself through each patch literally with the Levi's Tailorshop. Shop Now & Customize your Levi's now!

2. For Functionalists, we will need to go after product specific content. Mid-funnel campaigns.
   
   Target Audience:

• Age - 18-35
• Living in Tier 1 & 2
• Male
• Interests in brands like U.S Polo, Pepe Jeans, GAP,
• In-Market Audience
  
  Content Example: Advanced Stretch - Highlighting the ease, comfort & versatility of the product for users who are looking for timeless pieces
  
  Video Reference 2
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Copy: For all times, chilling, partying, working - Levi's Advanced Stretch Jeans will be your go to pick!

2.1: Emphasizing the loyalty benefits while shopping on App

Copy: Levi's Red Tab Program - It pays to 'Live in Levis'. Earn & burn 2X points on every transaction.

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Content Loop:

1. Where does users spend his/her time? Both our ICPs spend majority of time on social media
2.Content the user would like to speak about - Our Fashion Seekers & Budget Stylists would concentrate more on the fashion & trend content
3. Content will be produced both via the users & Levi's.
1. Style Tips - That users would like to consume
2. Featuring users who have customized their Levi's at the Tailorshop as - 'Brand Ambassadors'
3. Users can share their own designs which can be added in the pool of tailorshop, and everytime that design gets used by other user, the first gets notifief and can also track how many times his/her design is being used. Which will give them a sense of excitement and they will inturn want to share this achievement with their friends and families.

Thanks,

Shraddha Gupta

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