Modern jeans began to appear in the 1920s, but sales were largely confined to th e working people of the western

United States, such as cowboys, lumberjacks, and railroad workers. Another boost came in World War II, when blue jeans were declared an essential c ommodity and were only to people engaged in defence work. 1st stage of innovation In the 1950s and 1960s, Levis jeans became popular among a wide range of youth su bcultures. Levis popular shrink-to-fit 501s were sold in a unique sizing arrangem ent. 2nd stage of innovation After years of laying too much upon the success of its famous 501 denim model, the brand felt the blanket getting tidier and tidier and decided it has to make a move. Levis is ditching its nostalgic western image in a revamp of its retail outlets aimed at repositioning the brand as a trendy fashion label. The stores are aimed at 15- to 25-year-olds who have forsaken the brand in favou r of designer labels. Reasons for Innovation Saturation of the jeans market Levi Strauss & co. is approaching to the saturation of the jeans market. The fas t changes in the consumer tastes, competition in both the lower end and higher e nd brands, fast development in the modern distribution and sales technology has brought about a continuing lose of the market share. Competition from products of the higher end of the market Recently the company (in terms of sales) has been victimized by increasing compe tition from the GAPs private label jeans, resurgent LEE & WRANGLER brands and oth er trendier brands. These brands offer the same basic product: jeans for a cheap er price. For success, LEVIS needs consumers to recognize the higher quality and better reputation that is associated with their product as compared to that of t hese new competitors. Fast changes in the consumer tastes Society shapes the beliefs, values, and norms that largely define consumer taste s and preferences. People absorb, almost unconsciously, a world view that define s their relationships to themselves, to others, to organizations, to society, to nature. Result Developing new products for the existing markets A new series of engineered jeans has been developed and launched as a part of a program intending to meet the needs of their major target market, in order to re gain their lost ma5rket share and to maintain their position in the industry. Introducing existing products in new markets In order to extend the product life cycles of different product lines, they have to identify the potential users and to seek correct distribution channels in th at location in accordance with other variables of the marketing mix. Certain resources will be allocated to their existing brands, to maintain market share of 501. Example: The generic strategy to be chosen is differentiation. According to McDonalds if t he company chooses differentiation with relative low costs it will be able to re ap outstanding success. According to McDonald, first, LEVIS has to identify and exploit growth segments a s it is shown with Dockers. Second, it has to emphasize product quality in order to avoid commodity competition. And finally, it has to systematically improve pro ductivity and profitability by situating the production facilities in the most c

ost efficient place. Invest heavily in the most attractive markets. Starting in 2008, standardizing the fit of its classic, iconic 5801 denim model, launching a huge global campaign under the name Live Unbuttoned, with the main ob jective of changing the perception and attitude towards the brand, to rejuvenate the brand and bring it back to the front mind of the young market when recallin g a need for a pair of jeans.