Chipman Union

CASE ANALYSIS
Chipman- Union, Inc. Odor-Eaters Socks
Marketing Assignment
GROUP 11
Anoop S Raj

2011-PGP-557

Bhawna Gokani

2011-PGP-595

Gawtam Kannuri

2011-PGP-679

Keerthan G

2011-PGP-688

Nitin Jain

2011-PGP-757

Sahil Sambyal

2011-PGP-842

Vel Bhagyaraj

2011-PGP-931

Executive Summary
The union was established in 1972 by merger of union Manufacturing play along with
Charles Chip mans Sons Company. Chipman Union primarily make mens and boys
casual and athletic socks which were sold to deal unbrand as private labels. There we re
only devil companies namely Burlington industries and interwoven division of Kayser -Roth
Inc., which manufactured branded socks, and companies draw off those two companies had
20% gross margins or below. To get high gross margin, CU had to venture into ne w
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 form before launching the product.

Objectives:
?

To improve the gross margins of Chipman union to supra 20% by introducing
branded socks, for this introduction they have be after a market research.





Situation Analysis
? The Hosiery Industry
In 1979 the hosepipe shipments totaled 289 million dozen pairs of which 25% were mens
socks. In the men socks dress contributed 34.9 % of sales and casual contributed 21.9% of
sales. The revenue snag was in similar ratio as of sales crosswise different types of hosiery .Per
capita consumption of mens socks was immutable at around 10 pairs annually. However, the
share of tube socks, the unrivalled having no specific shape rose exponentially from 1 % in 1970 to
over 50% by 1979.In 1979, there were 319 hosiery manufacturers in US, down from 457 in
1972.These companies operated 438 knitting mills of which 93% were turn up in southern
United States .A knitting machine capable of producing 8...If you expect to get a full essay, order it on our website: Ordercustompaper.com



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