CASE STUDY. PRIVILEGE (Article published in Spanish)

Abstract

Privilege is the brand name of the products launched into the Cali market by the Jaramillo family. They offer custom-made and regular-size garments for men and women with an emphasis on personalized customer service. Privilege features the latest fashion designs, manufactured in compliance with high quality standards. Their product portfolio also includes both casual wear and formal attire for executives. Although this brand had no direct competitors, other exclusive brands and designers were among the group considered by the target buyers of Privilege products. The company’s management now faces the following challenges: i) elevated fixed costs (50% machine occupancy) which have a negative impact on profitability; ii) the recent opening of a new point of purchase generating lower revenue than needed to ensure its self-sustainability; iii) low recognition by the target market; iv) financially strong competition; and v) widely recognized and well-established brands offering products at competitive prices.