Chipman Union Inc.

Chipman –Union Inc. was manufacturer of men's and boy's casual and athletic unbranded socks which were sold as private label manufacturer. The company was a full line supplier with unlimited variation in style, size, color,combination, yarn and packaging causing high cost of short production run Chipman –Union Inc. was manufacturer of men's and boy's casual and athletic unbranded socks, which were sold as private label manufacturer. The company was a full line supplier with unlimited variation in style, size, colour combination, yarn and packaging causing high cost of short production run

To decrease the cost, CU has taken two major step

1. Dropping of style not generating annual sale of 5000 dozen pair

2. Cutting down of style that could not be manufactured on 108 needle machine

To enhance their gross margin, CU decided to introduce nationally promoted, deodorizing branded socks with the brand name ‘Odour- Eater'. To make it reality, the company stated evaluating a marketing programme and identified that while there was good scope for the product in the market, there were several problem that need to be solved before launching the product

Problems

1. Evaluation of product based on its unique feature-odour control- whether it would be able to appeal consumer or not?

2. Effective pricing strategy- as competition was present in the market for the product –what should be the pricing strategy to compete effectively in the market. What should be the promotional price of product to gain large consumer base

3. Brand awareness- as the company was dealing in non-labelled product earlier, what should be the communication strategy to make consumer aware of brand.

Situational