Five years ago Jack Worley. vice president and salesman for e Warren Sewell Clot

Question

Five years ago Jack Worley. vice president and salesman for e Warren Sewell Clothing Company, organized the Worley-Sewell Company of Bremen, Georgia. Hc believed that the Sc me, we known for suit:s and sports coats in the men's clothing trade, would carry over to Worley- Sewell's linc of men's jackets and all-weather coats. Two years later Worley Sewell expandeds e to include ladics and children's outerwear. Man- agemcnt was now considering addin new linc boys'suits and sports coats. Initially, an out-of-state contractor made Worley-Scwell's products However, Worley and George Turner, an employee of Hubbard Slacks, also a Bremen Company, had organized T and W Manufacturing Company to make the Worley-Scwell line. The Tand W plant located in Waco, Gcorgia finished piece goods furnished by Worley-Sewell. Title passed to Worley- Sewell upon completion of m" work, and the finished items were stored in warehouses in Bremen. Sales volume had grown to $2 on, causing management to expand both Bremen warchouses and te Waco plant Worley-Sewell regarded Campus and Cambridge Original as its prin- cipal competitors. Campus offered a wider product line and had annual sales of approximately $50 million. Cambridge Original of Duluh, Georga, was about the same size as Worley-Sewell had roughly the same territory cov- erage, and had a similar product linc. Worley-Sewell sold most of its output to retailers in small towns and in the smaller cities. Retailers in large cities were regarded as difficult pros pects requiring cxcessive selling time. Competition was also more intensc in the larger metropolitan arcas. Management belicved that middle-aged people constitutedsargest customer group, as they were not particularly brand

Explanation / Answer

1. In my opinion, W-S should have added the new line for the below reasons:

2A. The company is structuring the product line by entering into boys suits and sports coats. The company was already present in jackets, all weather coats, men's and ladies formal wear. The only extention which was a miss from the company was boys product line which will be completed with this new move by the company. The way the company is using the Product line is clearly evident from this strategy. The company has also tried to diversify its markets with it new extention to the product line. With this product line extenstion, W-S is getting a chance to extend its brand and attract customers who might prefer buying the new products under the same brand. With a new line, W-S is giving more choice to its customers who will appreciate having more than a single choice and the only way W-S could have done is adding a new line with the idle capacity existing at this point of time

3A. Assuming that the company adds the new line, there should be a new and improved marketing strategy form W-S. As the company is planning on attracting new set of customers with its expanded product line, new marketing strategies have to be developed which are as follows:

It is commendable that W-S plans to expand its product line before the brand is set for a certain target audience. This is the right time for the company to foray into new markets before the competitor eats up the majority of the market share.

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