Page 11 - OCS Workbook - Day 1 Task (May 2018)

Chapter 3

MANSAKO – SUMMARY AND KEY

TOPICS

1 INTRODUCTION

It is absolutely crucial that you completely familiarise yourself with the pre-seen information prior
to attempting the Case Study exam. Merely reading through the materials is unlikely to be
sufficient and it is also important that you consider which aspects of the three technical subjects
may be useful and relevant for the Case Study.
The exercises in the following three chapters will help you to gain a thorough understanding of
the Case Study scenario and ensure you are fully prepared to attempt the Practice Tasks later in
this Workbook.
Solutions to these exercises are provided but are not exhaustive. It is important that you attempt
the exercises yourself and makes notes of your answers before reviewing the solutions.

2 OVERVIEW OF PRE-SEEN

The pre-seen information concerns a company called Mansako that manufactures high quality
leather bags and accessories in the country of Lowerland.

Business model
Mansako has a competitive strategy of ‘affordable luxury’ – it makes high-quality leather bags and
accessories and sells them at a price point set between the lower prices of American designer
brands and the higher prices of designer French and Italian brands. Between 2012 and 2015 the
company tried to sell at higher prices into the high-end luxury sector but this failed dramatically.
Getting the pricing decision right is seen as a critical success factor for the business. Linked to this
it has to be wary of excessive price discounting (either as part of an end of season ‘sale’ or via
discount outlet stores) as this could undermine brand awareness.

Mansako makes all of its products at a single factory in Lowerland with the ‘made in Lowerland’
label being seen as an indicator of quality.
Mansako sells through three main channels; 119 owned stores, internet sales and third party
retailers and has an ‘omni-channel’ strategy that seeks to integrate these.
Many of Mansako’s markets seem to offer little prospect for growth, with the exception of the
Asian market.

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