Premium Brand Apparel Retailer

• The firm's market share has fallen from 25% to 16%
• The market has been growing
• The industry has not seen any major merger or acquisition

Our competitors are premium retailers in the same segment. Recently we have started facing competition from mid-range brands as well.

There has been no change in cost structure or margins.

• We distribute our products through large retail outlets that stock multiple products (80%) and self-owned outlets (20%). We do not have any online sales channel
• A lot of our distributors have recently started their own premium apparel brands

• Prices have not changed
• Our marketing mix has remained unchanged.
• Competitor's prices, marketing mix, etc. have also not changed

• They are not priced sensitive
• Their recognition of our brand is low

The candidate should ask questions regarding the background of the case.

It can be seen that the company does not have many distribution channels. 80% of the distribution is through large retail outlets that stock multiple products. Now since these outlets have launched their own brands, they must be pushing the sales of their own products over firms' as they earn a higher margin on their own products rather than the firms' products. Our market share is declining as they have control over the shelf space.

To reverse this trend, the firm should consider diversifying its distribution channels.

• The firm could open up more self-owned stores
• The firm could also consider the creation of an online store

Since the customer's recognition of the brand is low, the company should also work on a branding program to strengthen the customer pull.

The firm's market share is decreasing as the company's primary distribution channel has launched its own set of apparel which is in competition with the firm's apparel.

The firm should open up more self-owned stores and consider the creation of an online store in order to reverse this trend.