Levi’s Sustainability Case Competition Team NIBPGE

1. Levi’s Sustainability Case CompetitionTeam NIBPGE The Strauss

2. Team NIBPGE Zahin Ali Financial Analyst Leslie Chen Marketing Specialist Jean Saung Designer Cecilia Xia Environmental Specialist James Zormeir Product Development Analyst

3. The Product

4. Introducing the Strauss • Handkerchief made from strips of denim waste, embroidery, and pocket lining fabric waste • Creation of a family of products that finds a home for the waste created from each pair of jeans • “reach potential”

5. Prototype A

6. Less water Less energy Less often More Future • Save water • Save trees • Save people • “Go Forth” • One piece • One detail • One pair • One Levi’s Strauss

7. Global Scalability • Product is easily adaptable on a global scale, as it will be riding on already established transportation and production lines

8. The Consumer

9. Consumer Involvement

10. Marketing • New “reach potential” ad campaign • Educate consumer: establish consumer awareness of their roles in the waste generated by every pair of jeans • Marketing ad package • Social media: establish sustainability as a Levi’s corporate and consumer culture • Print advertising: establish a signature Levi’s fashion element • Commercial advertising: establish the fashion, utility, and sustainability elements of the handkerchief

12. Financials

13. Financial Sustainability • Provides a sustainable revenue stream in a time of global economic hardship • Modest investment=>Huge profits • Sustainable: Cost of hang tags as loss due to consumer negligence • Restructure supplier agreements to accommodate handkerchief manufacturing. No added costs besides those from manufacturing

14. Demand Projection Number of mens(womens) 501 jeans sold: =Total sales of mens(womens) 501 jeans / mens(womens) 501 Jean MSRP Sum these for total 501 jeans sales 501 Handkerchief Demand = D*(10,000 stores/55,000 stores) Logical Assumptions 501s breakdown: Total Sales in 2009 -> (A) Levi’s Products as % of Total Sales (A)->(B) Levi’s RedTab Products as % of (B) ->(C) Levi’s 501 Jeans Sales as % of (C)->(D) Total projected demand: 501 Handkerchief Demand + Independent Handkerchief Demand Produce to meet projected demand Assume 20 independent handkerchiefs sold/day in each retail store

15. Costs Fixed Factory Space Machinery Variable Fabric Ink Thread Dye Utilities Labor • Marketing • Product Introduction • Staff Costs • In Store Ads • Public Ads

16. Cash Flow and Returns • Required Rate of Return: 10% Average Rate of Return: 31.3%

17. Environment

18. Environmental Impact • Average North American uses 50 pounds of tissue paper a year • Reduce tissue paper use by over 30% per active user of the Levi’s handkerchief

19. Sustainability during Production • Creation of a product that uses denim waste in its design details • Each each piece, no matter how small, has a role to play and a potential to be reached

20. Sustainability through fashion Appreciate The consumer is an untapped resource for awareness and action. Levi’s has the potential to inform, involve, and empower the consumer to be environmentally conscious in their consumption.

21. Sustainability through fashion Conserve: • Conservation becomes second nature to the consumer through the many uses of this product. • Practical and useful accessory • Hang tag during sale • Source of information to the consumer • Fashion statement • Sustainability/lifestyle statement, a reminder • Catalyst for consumer involvement and action • Constant companion

22. Sustainability through fashion Contribute: • Each action and contribution from a consumer, no matter how small, plays a role in saving our planet. • Sustainability is reached when purpose is achieved and potential is not wasted.

23. Reach Potential