Essay on Chipman Union Odor Eaters

3331 Words Jun 22nd, 2007 14 Pages
In 1979, Chipman-Union was a medium size company which primarily manufactured unbranded socks sold as private label merchandise. The market of socks in the U.S. was characterized by severe price competition and limitation of product differentiation. There were only two companies which manufactured branded socks, and companies except those two companies had 20% gross margins or below. To get higher gross margin, CU had to venture into new business – branded socks. They began to investigate the marketing program for the new product, and recognized that there were not only valuable possibilities, but also problems they would have to solve before launching the product.
In this case, first of all, the product will be evaluated focusing on the
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This reflects that consumers became less sensitive to price, and paid attention to products with specific function or shapes. That is, this means that a certain branded product which had specific shapes, colors, or function could be appealing to consumers. In particular, this kind of socks which had various features could be served as gifts. 50% of men's hosiery was sold in back-to-school and Christmas season.
Consistent with this trend, price of Odor-Eaters ranged from $1.79 to $2.49 a pair. According to the results of consumer research, respondents tended to select $1.99-2.49 a pair more than $1.79-1.99 a pair. In other words, consumers tended to prefer expensive one to slightly inexpensive one. As indicated above, price range including Odor Eaters was a rapidly growing market, and the high price strategy seems to have been reasonable.
Communication Evaluation
Basically, GFM marketing program suggested that advertising strategy should be targeted to female heads of households, because those female heads were main purchasers of hosiery. The female heads of households represented 65million men. Accordingly, it is very important to find media appealing to this consumer segment. Traditionally, advertising in the hosiery industry was primarily concentrated on print advertising. One of the most important objectives of the advertising campaign of Odor-Eaters was to produce brand awareness of Odor-Eaters socks. According to

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