Classic Knitwear Case Study Essay

The product is being launched under the brand pertain of withstander apparel and it has decided not to include the name uncorrupted Knitwear. Classic knitwear label should be mentioned along with Guardian label in the product. As the all the cost of advertising/marketing is being borne by Classic Knitwear, it should probably create a line extension to subjugate confusion with its othernon-fashion knitwear segment offerings.The number of SKUs include 4 designs in 4 different colours. The number of SKUs spate be cut back by using provided the 3 most popular colours in 2 most popular styles. This way the SKUs can be reduced to 6 units and this will ensure that the familiarity can concentrate on the colours and styles most in demand rather than spread its resources skimpy by launching many SKUs.The market research is not extensive, only 1000 respondents were sent requests. This should not be relied upon entirely for making such important decisions. More respondents should be in terviewed before coming to a conclusion. initial distribution is planned through major sporting goods and apparel shackles which would support the establishment of the brand in the introductory phase. However, the sale at discount stores and sports & retail outlets simultaneously is inappropriate- the prices must not differ extensively across all outlets. This agreement forced Classic to meet serial of steadily rising annual net sales targets for the first quatern years and target for 4th year must be met in each subsequent year. If it failed to meet the requirements then the license would be sour and void. Only the Guardian logo is being used on the product. It may be a headache for Classic if there is any remainder between companies over their agreement in the future. With this agreement a bunco term benefit can be realised as the dictated marketing investment has been reduced to $3 million from initial foreboding of $8-10 million. As the brand value of Guardian will inc rease by its promotion they should also bear some part of marketing expense. Moreover, the article about termination of agreement should be removed/relaxed as it may lead to an investment loss on part of Classic.ConclusionThe caller is able to cater to the demand of insect repellent clothes which is practically higher than the break even sales required for company. So, the company can earn profit margins which are much higher than the current levels. Also, company can break into the Niche and the Retail market through this project. fiscal Viability and the other recommendations mentionedabove, make it attractive for the company to go ahead with Guardian Project.