Problem Definition
We are a premium brand apparel retailer facing a consistent decrease in market share. We would like you to figure out why this is happening and provide recommendations to reverse this trend.
We are a premium brand apparel retailer facing a consistent decrease in market share. We would like you to figure out why this is happening and provide recommendations to reverse this trend.
The case is designed to be presented to the candidate by an interviewer, who plays the role of a representative of a premium brand apparel retailer.
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.
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 apparels which are in competiton with the firm's apparels.
The firm should open up more self owned stores and consider creation of an online store in order to reverse this trend.
Explore the possible impacts of these new channels on the company’s brand.