Concept explainers
Case summary:
Person C started a business of manufacturing Pants by establishing Company R. It focusses on providing hardwearing pants for hardworking women. Person C focusses on the three elements of marketing strategy such as target market selection, segmentation and positioning.
She focusses on value and quality of the products. The customers of these products agree with a reasonable price to pay for pants that keep them to safe and contented on the relevant jobs. She started selling the products through retail outlets that would allow more customers to try the pants.
Later on, she opted to function on her own distribution channel, by selling through own website and over the telephone. The advertisement style of Company R is different from other companies, the communication style is more fun and more daring. Person C looks for high visibility and low cost ways to reach customers. It has gained customers all over the world with the integration of meeting the needs of the customer and quality products and an imaginative marketing effort.
Characters in case:
- Company R
- Person C
To discuss: Whether the decision of Person C keeping the production in Country U will help the company to solidify its market position in the minds of target customers.
Explanation of Solution
Person C’s target market is likely an adult women who are employed outside the home because she focusses on providing the hardwearing pants for the hardworking women.
Generally these customers are more vulnerable than many to the trends of outsourcing labour to other nations by apparel businesses, as this outsourcing leads to job losses in Country U.
Thus, holding manufacturing in Country U can therefore appeal to customers who not only want to purchase Country U products but also want to maintain employment in the country. This helps the companies like Company R to solidify its market position in the minds of target customers.
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