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Chipman Union Inc. Odor Eater Socks

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CHIPMAN-UNION, Inc.
Odor-Eaters Socks

EXECUTIVE SUMMARY

In March 1980, Hosiery market in United States was quite competitive in terms of price and players. Chipman-Union Inc. was one of the major players in this market which produced a whole gamut of hosiery products ranging from men’s dress hosiery to socks for all types of customers like men, boys, girls, misses and athletes.
Chipman-Union was established in 1972 by a merger of the Union Manufacturing Company with Charles Chipman’s Sons Company. In 1979, CU had to narrow down its product lines to increase profit margins by removing production inefficiencies. By 1980 it primarily manufactured men’s and boy’s casual and athletic socks, which were sold to the retail/ distribution …show more content…

They also proposed a few consumer promotions to be supplemented along with the advertisement such as the $1 cash refund offer or 25 cent coupon offer to gain consumer attention.
GENERAL CHARACTERISTICS * Low Interest Category * Limited Product Differentiation * Price Sensitive Customers * Seasonal Variation in Sales * Customers’ Preferences in Packaging

PROBLEM STATEMENT

* The company is considering whether or not to introduce a branded line of men's athletic and casual socks. Based on the research conducted by the GFM and their estimates and recommendations, the Chipman-Union Management has to decide whether they should adopt the GFM marketing program and should go ahead with the launch of this new product and thereby aiming to place about 15000 display units in retails outlets within two years.
COST ANALYSIS OF ODOR-EATERS SOCKS

Calculation of Net Margin per pack
According to the pricing and Cost-Structure analysis in the case, the Gross Margin and the Net Margins are calculated below: Cost Analysis Per Pair of Odor-Eater Socks | Cost Description | In $ |

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