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Classic Knitwear

In: Business and Management

Submitted By albuck11
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Classic Knitwear
A. Product Fit
There is a good product to company fit here; working with Guardian would bring many benefits to Classic Knitwear. Guardian’s brand already has a high level of awareness and satisfaction among consumers; over 50% of males ages 18-35 are aware, and 95% of those have a positive perception of Guardian. 58% of these consumers also recognize their insect-repellent pioneering status. Additionally, Guardian has a patent on their product, which could help make them, along with Classic, a market leader. The product will also offer a much larger gross margin than Classic had previously. Joining with Guardian would increase Classic’s brand equity and brand positioning, by giving consumers a unique reason to buy.
There is also a good product to market fit. The market expresses a growing need for a product like this, because of the growing awareness and concern for protection against insect-borne illnesses, and the lack of preventative products in the marketplace. Customers will trust the EPA rating on the shirts, and the product would attract the outdoor-enthusiast group of consumers. The market that this product would enter, the branded, non-fashion knitwear market, operates on gross margins between 30-40%, which is exactly where Classic would fall if it partnered with Guardian. Classic’s previous margins were 18%, which was substantially low compared to their competitors.
B. Potential Problems
The displays in retailers’ stores may take up a lot of their floor space, which could deter them from purchasing the product, even with the trade promotion and advertising allowance. Prior to this, retailers were getting 50% margin on branded knitwear, whereas Classic/Guardian would only provide 45%, so it would take some convincing for retailers to stock the product. The marketing plan also stipulates a January launch. This product seems to be...

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