Homework SourseRamiro Sons buys Tshirts in bulk applies its own trendsettin
Ramiro& Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers.
Ramiro wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive RamiroT-shirt.
Ramiro presents the following data for its first two years of operations,2012 and 2013.
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RamiroRamiro\'s
2.
RamiroRamiro
| 2012 | 2013 | ||
| 1 | Number of T-shirts purchased | 225,500 | 257,000 |
| 2 | Number of T-shirts discarded | 20,500 | 24,000 |
| 3 | Number of T-shirts sold (row 1 - row 2) | 205,000 | 233,000 |
| 4 | Average selling price | $32.00 | $33.00 |
| 5 | Average cost per T-shirt | $17.00 | $15.00 |
| 6 | Administrative capacity (number of customers) | 4,700 | 4,450 |
| 7 | Administrative costs | $1,739,000 | $1,691,000 |
| 8 | Administrative cost per customer (row 7 / row 6) | $370 | $380 |
Solution
1) Ramiro & Sons is opting a product differentiation strategy. The designs of Ramiro are “trendsetting,” its T-shirts are distinctive, and it targets to do production of its T-shirts a “must have” for all the teenagers. It demonstrates the product differentiation strategy, and to succeed, Ramiro need to continue the hard work to innovate and be able to charge a premium price for the product
2) The key measures Ramiro need to include in its balanced scorecard are as follows:
Customer Perspective:
-- Distinctive market share, name-brand Ramiro\'s T-shirt
--customer satisfaction, and increasing the new customers,
--increasing the count of mentions of Ramiro’s T-shirts in the leading fashion magazines
Financial Perspective:
-- Will be able to increase the operating income from charging higher margins
-- Charge premium price on products
Internal Business Process Perspective:
--Quality of silk-screening (use of glitter, wide use of colors, durability of the design),
-- New designs frequency,
-- Time between concept and delivery of design
Learning and Growth Perspective
-- Better ways to attract and retain talented designers
-- Enhancement in silk-screening processes,
-- Continuous learning in the marketing skill levels
-- Employee satisfaction
