Barbell apparel

In 2014 friends and bodybuilders from Las Vegas, Hunter Molzen and Alex Hanson had grown tired of struggling to get jeans that would fit their well-developed legs. They had grown tired shopping the big or tall stores to get jeans to fit their thighs, but then would require some serious waist altering to fit their physique. They decided that they would try and they could develop jeans for the athlete.

They developed their jeans by measuring hundreds of athletes. The new Athletic Fit design provides more room in the glutes and thighs to keep your customers comfortable, with a tapered waist so your pants stay put, look great and avoid unflattering gaping at the waist. They decided to use high-end technical fabrics that give the pants complete freedom of movement, so that customers get the same performance they are used to of their favorite sportswear.

Late in 2014 barbell apparel was formed on the back of a highly successful kick-starter campaign and started to build inventory and developed a website to sell the products to customers. Within the first 45 days they sold 8,000 pairs of jeans at a selling price of $150. This high end price has not deterred sales, but rather sales have continued to grow to nearly $1m in their first year. The entrepreneurs knew they had a business and knew they could expand into retail and applied to appear on shark tank, to bring on an investor and make the move into retail. They appeared on the show in 2016, but were unsuccessful, with some sharks expressing concern that the market might be too small to sustain the rapid growth in sales. At present the company still sells jeans on line only. It has added other clothes to their range and sales continue to grow.

1. Describe who the customers are of this product. (1 mark)

Product

1. Describe the key benefits of this product. (what makes them unique) (1 mark)

1. Label the above PLC diagram and mark on the diagram at which stage do you believe Barbell Apparel is at in 2016.(2 marks)

1. List 3 key characteristics of this stage in the plc. (3 marks)

Place

1. What are the 4 distribution channels that consumers products can use? (4 marks)

1. Which one is Barbell Apparel using? (1 mark)

1. List & explain the 3 different levels of distribution. (3 marks)

1. Which one is Barbell Apparel currently following? (1 mark)

1. Describe how their distribution strategy could change over time as they move through the product life cycle. (2 marks)

Pricing

1. List and explain the 3 pricing strategies a company can pursue. (3 marks)

1. At their price point, what pricing strategy are they pursuing? (1 mark)

1. How will their price change as they go through the product life cycle? (2 marks)

1. What is the difference between elastic and inelastic goods? (2 marks)

1. Why would it be said that barbell apparel is inelastic in nature? Why is this so? (1 mark)

Promotion

1. What are the 4 goals of promotion? (4 marks)

1. Considering the current position what should be Barbell Apparel's goal considering their position in the PLC. Give a reason for your choice. (2 marks)

1. Give 1 advantage & 1 disadvantage of Barbell advertising on TV? (2 marks)

1. Give 1 advantage & 1 disadvantage of Barbell advertising on Newspapers? (2 marks)

1. Give 1 advantage & 1 disadvantage of Barbell advertising on Internet? (2 marks)

1. Which media channel would you recommend that Barbell Apparel uses. Give reason for your choice (2 marks)

1. What is the difference between advertising and sales promotion? (2 marks)

1. List and explain 3 methods of sales promotion. (3 marks)

1. What would you recommend that Barbell apparel do for sales promotion? Give reasons for your choice. (2 marks)

1. Explain why personal selling not a significant element of the promotional mix at this time for Barbell Apparel. (1 mark)