Classic Knitwear
|Classic knitwear questions: |
|Does the “ product” fit Classic’s needs and capabilities? |
|What sales volume will break even on Classic’s 2-year investment and what is the |
|estimated demand for the new line over the 2yr launch? |
|What problems do you see in the proposed marketing program? |
|The major problem with the marketing plan is lack if research to indentify a viable |
|target market for the product. |
|Construct a “positioning” statement for “Guardian” line. |
1. In order for Classic Knitwear to remain competitive in the private label and unbranded knitwear market, executives feel they must raise their gross margins from 18% to 20%, with the potential of reaching margins of 30 – 40 %. To raise margins to 20%, Classic must differentiate the brand and increase brand recognition. Producing insect repellent clothing will provide an avenue for Classic to increase margins by capitalizing on their current production advantages. Classic will be able to sustain long term margin increases in a niche market that is currently unsaturated. The main marketing strategy would be to create a product line in an unsaturated niche market, where demand for the specialized product is increasing. Due to the growing concern of insect-borne illness, combined with consumer dissatisfaction with current insect repellents, we feel that Classic should develop an insect repellent clothing line. The combination of Classic’s clothing production efficiencies coupled withwith Guardian’s brand recognition and approval, a pioneer in insect repellent clothing item, provides an opportunity for a partnership that will help both brands grow theirenable business growth and expansion. businesses. Based on the preliminary research on long
|Does the “ product” fit Classic’s needs and capabilities? |
|What sales volume will break even on Classic’s 2-year investment and what is the |
|estimated demand for the new line over the 2yr launch? |
|What problems do you see in the proposed marketing program? |
|The major problem with the marketing plan is lack if research to indentify a viable |
|target market for the product. |
|Construct a “positioning” statement for “Guardian” line. |
1. In order for Classic Knitwear to remain competitive in the private label and unbranded knitwear market, executives feel they must raise their gross margins from 18% to 20%, with the potential of reaching margins of 30 – 40 %. To raise margins to 20%, Classic must differentiate the brand and increase brand recognition. Producing insect repellent clothing will provide an avenue for Classic to increase margins by capitalizing on their current production advantages. Classic will be able to sustain long term margin increases in a niche market that is currently unsaturated. The main marketing strategy would be to create a product line in an unsaturated niche market, where demand for the specialized product is increasing. Due to the growing concern of insect-borne illness, combined with consumer dissatisfaction with current insect repellents, we feel that Classic should develop an insect repellent clothing line. The combination of Classic’s clothing production efficiencies coupled withwith Guardian’s brand recognition and approval, a pioneer in insect repellent clothing item, provides an opportunity for a partnership that will help both brands grow theirenable business growth and expansion. businesses. Based on the preliminary research on long