Case Problem $1$

Case Problem 1 Cameron-Shaw is a leading retail operation consistirg of a flagship in Dallas and fifteen branches throughout Texas d Califomia- The flagship and its branches are all extremely successful in terms of volume and profits. Its volumeranks among tre top In department store organlzations In the WesV The stores are operated as high-priced* prestigious retailers. The labels and brands that they carry are among the best known and come from all of the major fashion c?ters in the world. The company does not offer private 'labels or brands tol ifs customers- Instead, along with its marquee labeds, it mixes in an assortment of little-known brandsats recogs show that these lower-image labels achieve greater markups and profits than the better-known products. This; of Course, lis based on an absence of competition that is thecae with Its higr/-proflle lines,m VMth tre evidence tat hgner marQps can be wm lesser-kmwn goods, the buyer fcr bridge cdlectiors, &nira Charg, has suested that tt- canpany corsider enterirg into private labellng. Thls wodd enable the organization to carry that It develops and it up Nghet She reascns that the pompanys excellent reputatim, ard the of an outstanding boydng tea-n. private labeling shculd be a relaty easy task Ms. Charg suggests that they first begin with some bridge merchandise and slowly add other lines to the model stock. QUESTIONS 1. What other information would you Ike to have, in addition to Ms. Chang's opinion, before embarking on a private labei? 2. Do you a store Of this nature is appropriate for this type of merchandising?