Classic Knitwear Case Study Essay

The product is being launched under the brand name of shielder apparel and it has decided non to include the name unsullied Knitwear. Classic knitwear label should be mentioned along with Guardian label in the product. As the totally the cost of advertising/marketing is being borne by Classic Knitwear, it should probably create a line extension to avoid confusion with its othernon-fashion knitwear plane section offerings.The number of SKUs include 4 designs in 4 different colours. The number of SKUs evict be reduced by using only the 3 just about popular colours in 2 most popular styles. This way the SKUs can be reduced to 6 units and this will ensure that the company can concentrate on the colours and styles most in demand rather than spread its resources thin 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 interviewed before coming to a conclusion. sign distribution is planned through major sporting goods and apparel chains which would support the establishment of the brand in the introductory phase. However, the sale at neglect stores and sports & retail outlets simultaneously is inappropriate- the prices must not differ extensively across all outlets. This agreement forced Classic to decorous series of steadily uphill annual net sales targets for the first four 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 cancelled and void. Only the Guardian logo is being used on the product. It may be a headache for Classic if there is any conflict between companies over their agreement in the future. With this agreement a short term benefit can be pull in as the determined marketing investment has been reduced to $3 million from initial expectation of $8-10 million. As the brand value of Guardian will development by its promotion they should also bear some part of marketing expense. Moreover, the clause about termination of agreement should be removed/relaxed as it may lead to an investment loss on part of Classic.ConclusionThe Company is able to cater to the demand of insect repellent clothes which is much high than the secern 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. Financial Viability and the other recommendations mentionedabove, make it attractive for the company to go ahead with Guardian Project.