Nundies case study
Nundies
Case study
1. How would you characterize the situation facing Advanced Materials with respect to Nundies in January 2008?
Nundies means no undies which are disposable thin panty that made for woman who like invisible panty lines and wish to wear thin liner instead of wearing traditional under wear. Nundies sell its product through different channels but mainly through women’s specialty shops which counted 242 in 2007. It also distributes its products online at its official website as well as many other store websites. The main purpose of Nundies is to offer women who dislike underwear a convenient and comfortable product. The biggest advantage for Nundies is that there are only substitute products available in the market, the product it offers has no direct competitors.
Now the primary problem Nundies facing is that Nundies’s expectations are failed due to the low store repurchase rate. Apart from the initial purchase, only approximately 6% stores placed additional orders for extra units and only 10% of reorders are included in the total units sold. In addition, although the online activity is considered to be positive, it is not used frequently enough in terms of reorder. The amount of panties included in a single package is another problem and will be discussed in the next question.
Other problems includes the sales person in stores do not promote Nundies enough. They think Nundies can sell themselves because they are already displaying on the shelves. So sales person do not talk about the product or recommend Nundies to their customers. Actually, customers with interest to Nundies seem to be embarrassed by showing their interest in stores. Therefore the passive attitude of sales person has a direct impact on the sales of Nundies’ products. Moreover, Nundies’s products displays together with other merchandise in shops means its products merge in with other goods, customer would possibly miss Nundies’s products and this result in a big loss in
Case study
1. How would you characterize the situation facing Advanced Materials with respect to Nundies in January 2008?
Nundies means no undies which are disposable thin panty that made for woman who like invisible panty lines and wish to wear thin liner instead of wearing traditional under wear. Nundies sell its product through different channels but mainly through women’s specialty shops which counted 242 in 2007. It also distributes its products online at its official website as well as many other store websites. The main purpose of Nundies is to offer women who dislike underwear a convenient and comfortable product. The biggest advantage for Nundies is that there are only substitute products available in the market, the product it offers has no direct competitors.
Now the primary problem Nundies facing is that Nundies’s expectations are failed due to the low store repurchase rate. Apart from the initial purchase, only approximately 6% stores placed additional orders for extra units and only 10% of reorders are included in the total units sold. In addition, although the online activity is considered to be positive, it is not used frequently enough in terms of reorder. The amount of panties included in a single package is another problem and will be discussed in the next question.
Other problems includes the sales person in stores do not promote Nundies enough. They think Nundies can sell themselves because they are already displaying on the shelves. So sales person do not talk about the product or recommend Nundies to their customers. Actually, customers with interest to Nundies seem to be embarrassed by showing their interest in stores. Therefore the passive attitude of sales person has a direct impact on the sales of Nundies’ products. Moreover, Nundies’s products displays together with other merchandise in shops means its products merge in with other goods, customer would possibly miss Nundies’s products and this result in a big loss in