Analysis of Leather Clothing Co: Sales Decline & Competition from SE Asian Markets - Prof., Apuntes de Marketing

¡Descarga Analysis of Leather Clothing Co: Sales Decline & Competition from SE Asian Markets - Prof. y más Apuntes en PDF de Marketing solo en Docsity! CASE 1. LEATHER CLOTHING ANALYSIS The company • Sales are going down • Small firm: 50 workers • Operating 50% of their capacity • Operating among 25 years • 450/50 = 9 Pieces per worker per week The industry • 1200 Companies • 1000 companies (of 1200) have <100 employees • 6 the 25% of the market The product • Men’s apparel • Quality, no complaints, almost handmade products Competition • Lower prices by southeast asian Environment • Recession related with the decrease on sales and the lower prices demand • Inflation Customers • Independent shops sell 23% jackets and 30% coats • Tailor shops sell 15% jackets and 12% coats • Department stores 12% jackets and 13% coats • Modal Fashion: a) Cheaper options b)Leather clothing ■ LC just work for MF because has just one sale agent that is loyal to MF, so since he gets a % on sales of MF he will find better options than LC. The problem • LC has just one consumer that is too powerful because it has just one sale agent that does not belong to the firm so he will be loyal to who is giving him more money. • Distribution policy. Department stores were not a good option • Scarce sales agent • Marketing myopia: Thinking that the product does not need marketing because is going to sell itself. Solutions Contract a sales representative belonging to the company with experience and change the distribution policy, selling now in independent shops or maybe tailor shops.