Delphi Fathions Delphe was startied five pears age by the two owners Samantha Godirey and Yvonne buaselwood. Prior to starting this buiness, they both had extenhe expernence in the garment industry Sattanthas experience had been predsetindetly in underwear, outerwear and worlomear and Worne's in Ladiessear and fashion. When they fint started working fogsther, they concertated on workvear and fahion. The former gave them good (if somewhut dull) steidy busness and the iatter more interesting if variable work. In all cases, they were producing garments for othen to self on ether designers who would sel to retailen or wholesalens selling workweat. The workwear market became increaingly competitive and as more of their potential business went abroad, they decided to concentiace on the fathion side. They establiahed goed relationihign with a number of devigners who produced high-g-alty garments that sold at the mid bo upper end of the market. Business remained aood unfil matumn last year when one of their major cuntomets (6e per cent of turnever) decided to cease trading thd ther other cuitormen ieduced their orlens. Last year, they had made a decison to try and sell divect by setting up a website and doing a fachion thew in their home town. This concentrated an fashign for the latper lady as they Ielt that there was a gap in the market here. Their lateat dverufication was inte doth handbags that they designed and produced. Theve were low cost an they could be made to ocder, Again they hope to sell these drect to the condumers via the website Since the end of last year they have had no firm onders of work from their vesal customent The attempts to find new ountomers have been unsuccessful as it appears that erhet the dejighers are vourcing all their garmenss aboud or the sew designens are no longer working for themselves but joining large fashen houres. They ace also concensed that the few enquiries 10 date hive bees small and ako the prices have been wo low that the margin in paper-thin atler they have bken their cests ints account. They realived that a caiment that they sel on for 630 retals at cver 1100 once the wholecaler and retaler have talen a cut. In order to remairt in buiness they needed to drabically improve the margin thay make The obvious solution would be to deugn and well to the consumers drect but with ther Irtited reieunces thio would be difficult as they huve found as no salei have come from the fashion show or the websice. Anocher option would be 10 sell sa tetalen that would haver a lower prefit margin but would have the advanuge of mere relable sales. As the above is risky. they would alve like to eontinue theis' CCMT' (cut, make, trim) burines, in making clothes to order for estomers wint their desgns. Their problem is finding yuitable cusomers. In the short term, Samantha and Wonne need to find some mone CCMT cutomers to beep the busmess aflost ahle they buld their 'ifesign and produce' range of clothes for the larger woman a.

1. Delphi Fathions Delphe was startied five pears age by the two owners Samantha Godirey and
Yvonne buaselwood. Prior to starting this buiness, they both had extenhe expernence in the
garment industry Sattanthas experience had been predsetindetly in underwear, outerwear and
worlomear and Worne's in Ladiessear and fashion. When they fint started working fogsther, they
concertated on workvear and fahion. The former gave them good (if somewhut dull) steidy
busness and the iatter more interesting if variable work. In all cases, they were producing
garments for othen to self on ether designers who would sel to retailen or wholesalens selling
workweat. The workwear market became increaingly competitive and as more of their potential
business went abroad, they decided to concentiace on the fathion side. They establiahed goed
relationihign with a number of devigners who produced high-g-alty garments that sold at the mid
bo upper end of the market. Business remained aood unfil matumn last year when one of their
major cuntomets (6e per cent of turnever) decided to cease trading thd ther other cuitormen
ieduced their orlens. Last year, they had made a decison to try and sell divect by setting up a
website and doing a fachion thew in their home town. This concentrated an fashign for the latper
lady as they Ielt that there was a gap in the market here. Their lateat dverufication was inte doth
handbags that they designed and produced. Theve were low cost an they could be made to ocder,
Again they hope to sell these drect to the condumers via the website Since the end of last year
they have had no firm onders of work from their vesal customent The attempts to find new
ountomers have been unsuccessful as it appears that erhet the dejighers are vourcing all their
garmenss aboud or the sew designens are no longer working for themselves but joining large
fashen houres. They ace also concensed that the few enquiries 10 date hive bees small and ako
the prices have been wo low that the margin in paper-thin atler they have bken their cests ints
account. They realived that a caiment that they sel on for 630 retals at cver 1100 once the
wholecaler and retaler have talen a cut. In order to remairt in buiness they needed to drabically
improve the margin thay make The obvious solution would be to deugn and well to the
consumers drect but with ther Irtited reieunces thio would be difficult as they huve found as no
salei have come from the fashion show or the websice. Anocher option would be 10 sell sa
tetalen that would haver a lower prefit margin but would have the advanuge of mere relable
sales. As the above is risky. they would alve like to eontinue theis' CCMT' (cut, make, trim)
burines, in making clothes to order for estomers wint their desgns. Their problem is finding
yuitable cusomers. In the short term, Samantha and Wonne need to find some mone CCMT
cutomers to beep the busmess aflost ahle they buld their 'ifesign and produce' range of clothes for
the larger woman and the bespole handbegs. The feel that their long eiperience in dothes
peoduction would work weil with new hashion desgners who are very creative but perhaps thort
on practical experiencel ln the longer term, they want 10 take more control of their businets by
seiling their own designs funder their labely to consurners exther direct or via selectied retalers.
They believe that in this cont-conscious world, it is the only way to compete. Delphi bave
beought in a comultant to heip them with their marketing plan lar the buat: nesk. The consutant
has idemifed the key objectives as follows CMT Buninest - Undentand the curtent market for
CMS in the UK by reviewing maript reports and other published lateature and condoct
interviews with former costomers and other centacts in the earments indwitr. - Identify sources
for new CMT customers. - Undentand Delphir competive advantage in rulation to these new
ostomen. - Fuild a businew propesition to take to the new curtomen and identily the correct
approach. - Outine financials to ensure the survival of the buinest Derign and produce butiness -
Understand the currest marlat for high cualty (beupole" tadies' fashion in the dx by neviewing
market reports and other published literihuse and conduct interviews with former customers and

2. other contacts in the gamments industry. - Review range of products and deterimine which will
be used in thu business. - identify roules to market and decide on the drabery for each ene - took
at pricing stratces to enture maimum competitivenes and profitability. - Refine website and other
promotional tools to reflect the positioning of the producta 3 What tools would you use to try and
analyse the problems the business is facing? What is your rationale?