The Custom-T
“In simplicity lies perfection”
Management Accounting
Case Study
Section B
Group 4
Akshay Gupta-204
Monika Rawat-231
Viraj Shah-259
1 BRIEF SNAPSHOT
The Custom-T, a small textile manufacturing company, is looking to expand its visibility to potential customers. Further, being a small start-up it lacks a well-defined structure and is looking for a way forward to expand itself. Currently, it is a customized merchandising company based in New Delhi. The company has printed more than 30,000 T-Shirts in a span of just two years and caters majorly to the needs of various colleges and universities across the country. The company needs to develop a proper communication program to increase its visibility and to prepare
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The company still operates majorly in the Delhi NCR region where it has established a reputation for providing good quality customised design apparel at an affordable price.
3 BUSINESS MODEL
The company has a manufacturing unit based in Tirpur, Kerala which manufactures T-shirts and Sweatshirts of a fixed quality.
Being a small company, the company offers just two types of fabric quality
• 300-320 gsm (grams per sq. metre) for sweatshirts. The gsm is a measure of how fine the cloth is and a higher gsm material can be taken to represent a higher quality of material. The cloth provided is warm enough for the winters of Delhi and is hence appreciated by the customers.
• 180-200 gsm (grams per sq. metre) for t-shirts. The t-shirts generally are for purpose of printing multiple coloured logos and embroidered crests.
Added Revenue to the basic cost is a major component of earnings. The basic cost is quite reasonable (around Rs. 450 per Sweatshirt and Rs. 180 per T-Shirt) and thus the deal on the whole is quite lucrative. The added revenue is generated from:
• Apart from the basic fabric material, the company also charges per instance of colour used in the design of the sweatshirt/t-shirt. Hence multiple coloured designs would cost more than simple design.
• Further the company also offers embroidered logos and crests at additional prices above the base prices.
• Usually, each customer requires a design as it is generally
The company tries to establish a new approach to engage with their customers, and the price needs to reflect that. Customers do not pay the premium price for the jeans, but rather for the lifestyle that those products reflect.
Continue supplying traditional main products, but open a eye on potential new business partners, Based on the JMD success experiences , find out chance to enter Man`s sport T shirt manufacturing business markets.
There are more outgoing costs in the production process for the Nike hoodies than the ‘Tesco Value Bread’ as the clothing’s going to more places, and costs a considerable amount more to make than the bread.
The fitness clothing market is growing rapidly. Customers’ new found inclination towards living healthier lifestyles has produced an increase in participation of people into various physical activities. Hence, the high levels of competition in the fitness and
company has been in existence for a little over 15 years and has made huge strides in the textile,
Lululemon is a high quality clothing brand selling items at an expensive price. Customers are willing to pay a substantial amount of money to purchase this clothing. Lululemon has the power to adjust prices constantly because they have a high budget. Hundreds of companies sell athletic clothes, but it can be argued that customers spend money to buy the logo rather than the clothing itself. Some of Lululemon’s competitors are Athleta, Nike, Fabletics, and Under Armor. Lululemon's $98 pair of leggings looks almost exactly like Athleta's $79 pair. Lululemon has the ability to do this because they know their customers will choose to buy their logo oppose to Athleta’s. The target area for Lululemon is typically upper middle class women but men and
Victor Athletics main concern with pricing it to keep prices as low as possible while simultaneously ensuring that they keep the wages of their employees fair and at a level of sustainable income for their workers to live off of. By doing this they also try to stay constant between both gender and size, when looking at Victors clothing you will see that regardless of these factors the price is steady. The Vintage Fit Tee Shirt for both genders is $35.00 USD. Sweatshirts progress to a more expensive option due to it being a feature item in their catalog. The Crewneck Sweatshirt is priced at $70.00 USD. In addition to the Crewneck Sweatshirt, the Printed Crewneck Sweatshirt is also $70.00 USD. Then the most expensive sweatshirt is their Hooded Sweatshirt at $95.00 USD. The last item Victor offers is their Jogger Sweatpants priced at $90.00 USD.
A polo style shirt made by Pine Island Limited. (manufactured in the United States) (100% cotton)
Since the demand for the brand has traditionally outstripped supply, the company can easily and without loss charge a premium from its customers. As mentioned the company sells its products at a 100% markup and which in turn translate into increased revenues.
The company motto is “Live the Dream” and they aim to fulfil their customers need and desire for comfortable clothes and equipment for travel and adventure sport. Kathmandu has described quality and performance as the key to their new design initiatives and they invest substantial resources that focuses on design, quality, technical development, merchandising and supplier management functions. They develop products that are
In 1997, it started expanding & establishing manufacturing units in South Carolina and Los Angeles, and as of today the apparel manufacturing operations have spread to 800,000 sq. ft. of facilities in the warehouse district of downtown LA.
Sweaters also have simple sewing operations, so they can be produced in an individual cell. Also the Sweatshirt style which has sewing operations similar to sweaters can be produced in the same cell.
originated in California in 1997 as a boutique watch manufacturer creating a small line of custom built,
They sell customized T-shirts. In this model, the company commissions a number of artists from around the world. They contribute design elements which a customer can select. The more graphic elements a user selects, the more expensive the final product gets. In this model, the artists will get their full price, the user pay for the graphic elements they select (about $5); the company itself makes its profit from selling the core product which is about $10.
Faruqui, M. (2014, July). Nobody can beat Bangladesh in price and quality. Retrieved from http://www.textiletoday.com.bd/magazine/873