Description Of The Custom T

1941 Words8 Pages
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
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