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Skinclad Ltd - overview and recommendations

Extracts from this document...

Introduction

Skinclad Ltd To: Mr Frank MD, Skinclad LTD From: XXX Marketing Consultants Subject: Courses of Action Date: 19/12/2003 1.0 Executive Summary Skinclad Ltd is a business-to-business manufacturer of high quality leather, suede and sheepskin men's full-length coats and jackets. The company has been established in the UK leatherwear market for twenty-five years, which in 2000 was valued at approximately �2.5m but has since dwindled due to economic changes. Skinclad sell their garments through Modal Fashions, a fashion retail chain, who have outlets throughout Europe. Since 2001 Modal have reduced their contract quantity to 25% and negotiations have become more difficult, with Skinclad only getting a profit return per garment as low as �1 on certain styles and being forced into two days a week production. Skinclad failed to secure a contract in 2001 to export through an overseas warehouse selling garments to the Scandinavian market. Skinclad are now working at breakeven levels in production and working within a �80,000 bank overdraft. Skinclads lease of premises is also due for renewal at the end of the year. This report aims to aid Skinclad in becoming more marketing orientated and in doing so will: * Review the micro and macro-environmental likely to impact upon Skinclad's in the long term * Identify internal factor's of the company where there maybe problems * Indicate marketing relevant courses of action In becoming market ...read more.

Middle

Skinclad's Assumed Structure of Hierarchy 3.2 Money Skinclad are working around break even levels, a bank overdraft of �80,000 and reduced credit levels from suppliers. Their financial assets only seem to be machinery and stock, if any, which means that their options for securing loans are minimal. The need and use of the personnel needs to be revised and to cut costs redundancies may be necessary. 3.3 Materials Skinclad's main materials are leather, suede and sheepskin. It is not known who their suppliers are but if Skinclad needed to increase production they may find it a problem in getting supplies on credit. Skinclad are producing high quality products, which according to the price continuum (R.Wright, 2004) means they are selling at a high price. This indicates that the materials bought may also be very expensive. Skinclad need to see if they can find a cheaper supplier or if new materials are being developed such as fake leather products (lammy). 3.4 Machines If money was available Skinclad can bring in more machines so as to increase production from 400 garments per week to a possible 1000. Firstly the current machines need to be evaluated to see if they are efficient enough. If not Skinclad need to see if new, more efficient and maybe cheaper production techniques can be implemented. ...read more.

Conclusion

The company needs to find out what is in fashion around Europe. Skinclad's market is generally a seasonal market as leather coats or jackets are generally bigger and more padded and used for colder weather. This means that they should try and make their products available to countries of colder climates, which they initially failed to do in selling to Sweden and Norway. The Scandinavian and Eastern European markets would be an ideal place to negotiate contracts as their climates are a lot colder throughout the year. Skinclad could also look to introduce women's outer garments as well. This could double Skinclad's target audience. Research into womens wear would need to be undertaken in considering designs. This at first could be costly but would broaden Skinclad's customer base. When going through research and development, Skinclad needs to find out exactly what its customers are looking for. Skinclad at this moment in time does not seem to have any customer care values or any after sales service. These would be fundamental steps towards becoming a more market and customer orientated business. Skinclad needs to work with its customers like Modal Fashion to see if they can make the processes of manufacturing, packaging and distributing their product as easy as they can. Marketing the company as an all round service than just a producer of leather, suede and sheepskin garments will enhance the reputation of the company and create a better relationship with its customers. 6. ...read more.

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