Page 202 - Cambridge IGCSE Business Studies

Cambridge IGCSE Business Studies Section 3 Marketing

Exam-style case study

Teen Fashions Option 1
Manufacture clothing for females in the 25–40-year-old age
Teen Fashions is a manufacturer of clothing aimed at
bracket. Many of these women will have bought clothing
fashionable young females. The company has a strong brand
manufactured by Teen Fashions when they were younger
image in Country X, which is where all of its products are sold.
so they are aware of the brand. Teen Fashions’ Marketing
Its current channel of distribution is shown in Appendix 1.
Manager, has been asked to carry out market research for this
Shaun, the recently appointed Marketing Director, suggested proposed new market.
in a recent board meeting that Teen Fashions should consider
e-commerce for the business. ‘Many of our competitors have Option 2
an online presence and we are in danger of losing market share Enter foreign markets. Sharee has just returned from a trade
if we don’t do the same,’ he said. mission organised by the government of Country X, to several
The Operations Director was not in favour of Shaun’s suggestion. countries in the region. She has identifi ed Country Y as a
See Appendix 2. possible market for this expansion. An extract from her report
to other members of the board is shown in Appendix 3.
Sharee, the CEO of Teen Fashions, thinks that the company
needs to consider expansion. She has identifi ed two
possible options:

Appendix 1 Appendix 2

200 Current distribution channel Email from the Operations Director to Shaun.
In addition to operational factors such as higher inventories and setting up a
department to handle e-commerce sales, we will also require a new website to
Producer
be designed and created. All of this will be very expensive and I am not sure it
will give our shareholders a good return on their investment.

Wholesaler

Appendix 3
Retailer
Extract from report on visit to Country Y prepared by Sharee.

■ Country Y has a large percentage of the population under the age of 25.
Consumer
■ Despite recession in most parts of the world, Country Y’s economy has
been growing rapidly and as a result consumers have high levels of
disposable income.