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Classic Knitwear Case Study

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Case Analysis: Classic Knitwear and Guardian A Perfect Fit?
Nature Of Industry:
• Business Model: Classic sell their product in two type of market one is the wholesale market and other is Private Label. In the year 2005 Classic turnover was $550 million and this was from the sale in US only.
Wholesalers comprised of 75% of the market which comes out to be $413 million. Rest 25% of the revenue comes fro the sale through private label, the main customer of which was Wal-mart and Dollar General
• Competition: The three major player of the branded side of the non-fashion knitwear market were JamesBrands, FlowerKnit and Greenville Corporation. Other companies with which Classic Knitwear have a direct competition are B&B Activewear. …show more content…

It is a manufacturer and distributor of non-fashion casual knitwear. The main business comes in from Wholesalers and Retail Channels. The company is at a stage where the cost advantage which it has due to its state of art offshore production facility is short lived and they are facing the threat of losing out to big players. The main problem for Classic Knitwear is the push from the board members to increase the gross margins consistently over 20% which right now is around 18%. Due to lack of brand recognition and poor tie-in promotion relations with any other company in the market; the company and its top executives are finding it extremely difficult to fulfil this requirement criteria. Thus, the case basically explores challenges in new product development and brand management. Classic Knitwear is thus considering partnering with Guardian (manufacturer of insect repellent) and launching a new clothing line to improve their margins The major problem for Classic Knitwear is to formulate the Product Policy and Licensing …show more content…

The new product will remain unbranded showing only the Guardian name and, although, Classic has a greater market share in the wholesale sector, concentrating on their retail channels does have a good potential for growth. Successfully breaking into this sector will require a good task force; however, hiring sales reps specifically focusing on this sector as Miller did will help sustain a steady sales course. Plus, with Guardian having a reported 95% consumer awareness of their products will potentially alleviate pressure in generating unaided awareness of this new

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