Define the Problem or Objective:
Nundies a unique brand of stockings introduced to the market fall 2006. The item to be sold at women’s boutique and specialty shops as well as 10 Neiman Marcus department stores throughout 40 states. Management problem did not seem to be the distribution of the new item in which they shipped out 11, 383 units of Nundies to stores through December 2007 and sold 2007 units online. A unit of Nundies consisted of a package of 5 liners. Nudies is a single use disposable panty that sticks to the inseam of womans pants, leggings, athletic wear, shorts, and jeans. Management seemed to have a difficult time trying to figure out the right strategy to use in an effort to increase the overall repurchase order rate in order to increase the company objective of sales and profits for the 2008 fiscal year. As a note there are other areas that present a problem for the company as well. A.) repurchasing orders are not meeting the goals set,
B.) The company also noticed that reorders were only about 10% of the total units sold, C) The online purchases were viewed as a positive, however it was not used frequent enough to measure reorder, D.) One big issue was the amount of panty liners per package, E) The staff at the retail strores thought that Nundies would sell themselves. This was a clear example of communication breakdown. E) To add to the communication issue the sales personnel were not trained to educate the consumer about the product or to even suggest trying the product. F) The other issue that seem to be of big concern was that the displays were getting lost in the stock rooms.
Jones 2
Fact:
Nundies generated 60% of sales from their largest customer which was Nieman Marcus however low re-order. The company first focus on its marketing concept: How they were going to deliver the new product from its current product lines. The unique idea of required development capabilities into consumer