Chipman Union Inc. Odor Eater Socks
CHIPMAN-UNION, Inc.
Odor-Eaters Socks
EXECUTIVE SUMMARY
In March 1980, Hosiery market in United States was quite competitive in terms of price and players. Chipman-Union Inc. was one of the major players in this market which produced a whole gamut of hosiery products ranging from men’s dress hosiery to socks for all types of customers like men, boys, girls, misses and athletes.
Chipman-Union was established in 1972 by a merger of the Union Manufacturing Company with Charles Chipman’s Sons Company. In 1979, CU had to narrow down its product lines to increase profit margins by removing production inefficiencies. By 1980 it primarily manufactured men’s and boy’s casual and athletic socks, which were sold to the retail/ distribution channels unbranded as private label merchandise. By early 1980, CU’s market share was estimated at 10% of units and 11% of factory sales.
The distribution channel of CU was also wide spread. In 1979, over 90% of its production was sold to 33 retail chains of which only 3 accounted for around 60% of the volume. 1% each was sold to food and drug stores and catalog show rooms. About 1.5% of the volume was even exported.
Bryan & Hagen; President and Vice-president, Sales were responsible for the pricing decision that CU takes and although their effort had yielded a 15% gross margin in 1979, management hoped to cross 20% line cause of operational efficiencies generated from shrinkage of product lines.
CU entered into private label market with various products such as ‘Just Shocks’ , ‘Rabbit’s Foot’ , ‘Show-Offs’ ,’Life Savers’ ; but despite heavy efforts none translated into a national brand.
In quest of launching a national brand in private label market, it has launched its ambitious Oder-Eater Project with collaboration with Combe Inc. which produces insoles with the same brand name and has a major presence for last 5 years. It has already conducted its market research in terms of focus group as well as mall intercept
Odor-Eaters Socks
EXECUTIVE SUMMARY
In March 1980, Hosiery market in United States was quite competitive in terms of price and players. Chipman-Union Inc. was one of the major players in this market which produced a whole gamut of hosiery products ranging from men’s dress hosiery to socks for all types of customers like men, boys, girls, misses and athletes.
Chipman-Union was established in 1972 by a merger of the Union Manufacturing Company with Charles Chipman’s Sons Company. In 1979, CU had to narrow down its product lines to increase profit margins by removing production inefficiencies. By 1980 it primarily manufactured men’s and boy’s casual and athletic socks, which were sold to the retail/ distribution channels unbranded as private label merchandise. By early 1980, CU’s market share was estimated at 10% of units and 11% of factory sales.
The distribution channel of CU was also wide spread. In 1979, over 90% of its production was sold to 33 retail chains of which only 3 accounted for around 60% of the volume. 1% each was sold to food and drug stores and catalog show rooms. About 1.5% of the volume was even exported.
Bryan & Hagen; President and Vice-president, Sales were responsible for the pricing decision that CU takes and although their effort had yielded a 15% gross margin in 1979, management hoped to cross 20% line cause of operational efficiencies generated from shrinkage of product lines.
CU entered into private label market with various products such as ‘Just Shocks’ , ‘Rabbit’s Foot’ , ‘Show-Offs’ ,’Life Savers’ ; but despite heavy efforts none translated into a national brand.
In quest of launching a national brand in private label market, it has launched its ambitious Oder-Eater Project with collaboration with Combe Inc. which produces insoles with the same brand name and has a major presence for last 5 years. It has already conducted its market research in terms of focus group as well as mall intercept