Classic Knitwear
Michael Aucoin and Will Mischke
Professor Planchon
Bus 472- Marketing Management II
September 29, 2013
Classic Knitwear Classic Knitwear, founded in 1995, began production of a unique line of unbranded casual knit apparel. Included in their product line were such clothing as T-shirts, sport shirts, sweatshirts and other wearing apparel. Although the company saw exceptional revenues as of 2005, they still felt that they were not meeting certain criteria when it came to their gross margin. They sought to increase their gross margin, currently sitting at 18%, to that of a more comfortable number of 20%. To combat this issue, Classic Knitwear decided to team up with Guardian, a producer of odorless repellant protection against bugs, and combine their fortes into a line of clothing infused with the bug repellant technology. These new products would hopefully to rise the gross margin to the 20% they were hoping to accomplish. The non-fashion casual knitwear market consisted of products that range from casual t-shirts to even underwear. Within this industry, it can be divided into two categories, those manufacturers who brand their products with their name and those companies who choose not to brand their line of products. On the branded side of the industry, Classic competed with three major brands. These brands were JamesBrands (which accounted for $4.5 billion in revenue from sales), Flowerknit (which accounted for $1.25 billion in revenue from sales), and Greenville Corporation's TopTops Division (which accounted for $630 million in revenue from sales). These branded labels competed on the level of private- labeled businesses. On the other side of the industry, Classic competed with one company in terms of unlabeled products. B&B Activewear were major competitors as they generated $590 million or 23.6% market share, which made them a leader in the market. Although not directly involved within this sector, Jamesbrand, Flowerknit and Greenville
Professor Planchon
Bus 472- Marketing Management II
September 29, 2013
Classic Knitwear Classic Knitwear, founded in 1995, began production of a unique line of unbranded casual knit apparel. Included in their product line were such clothing as T-shirts, sport shirts, sweatshirts and other wearing apparel. Although the company saw exceptional revenues as of 2005, they still felt that they were not meeting certain criteria when it came to their gross margin. They sought to increase their gross margin, currently sitting at 18%, to that of a more comfortable number of 20%. To combat this issue, Classic Knitwear decided to team up with Guardian, a producer of odorless repellant protection against bugs, and combine their fortes into a line of clothing infused with the bug repellant technology. These new products would hopefully to rise the gross margin to the 20% they were hoping to accomplish. The non-fashion casual knitwear market consisted of products that range from casual t-shirts to even underwear. Within this industry, it can be divided into two categories, those manufacturers who brand their products with their name and those companies who choose not to brand their line of products. On the branded side of the industry, Classic competed with three major brands. These brands were JamesBrands (which accounted for $4.5 billion in revenue from sales), Flowerknit (which accounted for $1.25 billion in revenue from sales), and Greenville Corporation's TopTops Division (which accounted for $630 million in revenue from sales). These branded labels competed on the level of private- labeled businesses. On the other side of the industry, Classic competed with one company in terms of unlabeled products. B&B Activewear were major competitors as they generated $590 million or 23.6% market share, which made them a leader in the market. Although not directly involved within this sector, Jamesbrand, Flowerknit and Greenville