Dana Fashion Designs, Inc. Role 2: Gerry Reynolds, VP of Marketing
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You have been with DFD for the past three years. You were the third employee to fill this marketing position. Previously, the company had a difficult time filling the position. Both of your predecessors didn't like the idea of compensation in stock options. Oddly enough, both needed to finance major purchases and needed a minimum salary with most reimbursement tied to cash immediately. This worked out to your benefit because this position fits you perfectly. Recently divorced, you decided to move home to care for your ailing parents. Well, that's only partially true. You moved home but have used their accumulated assets to hire caretakers. Your parents' cash and investments allow you a comfortable lifestyle. Since you are an only child, your parents want to help you get ahead at this early stage of life. Without many living expenses, you favored the stock option compensation plan. Prior to DFD, you worked for several New York firms that design clothing for men, women, and children.
You can't understand the reason for the decline in sales. Without a doubt, DFD's clothing is superior to the competition in terms of quality. As the head of marketing you put full faith behind the product and the strategic decisions you have personally made about the company's marketing strategy. The product filled an unaddressed market niche. Higher income people were yearning to release their designing capabilities and express themselves through another avenue. The distinctive process omitted the role of salaried designers and eliminated the risk of perishable inventory and inaccurately predicted fashions. DFD priced its clothes to reflect their elite nature. Because each article had a unique size, pattern, color, and fabric, the production costs were also high. Customers paid a premium for the accompanying prestige status. DFD chose to limit distribution to its own retail outlets. This allowed it to maintain control over the entire purchasing experience. Your proudest accomplishment in the company has been the development of the integrated marketing communications strategies. Believing that promotions would lower the brand image, you decided to focus exclusively on advertising in business, fashion, and international publications. A website was developed to provide consumers with information about DFD's products and services, but customers must still go to the retail stores to design and purchase their custom clothes. You also pushed for alliances with renowned cosmetic, shoe, and handbag manufacturing companies.
This "recession" is just a figment of everyone's imagination. Both the President and the Federal Reserve Chairman have taken measures to resolve the situation. Before long the economy will be booming again. In fact, now is the time to start investing in new facilities in anticipation of future growth. Yesterday, while speaking to the VP of Operations, you learned that the CEO was considering a cut in the marketing budget. Tomorrow you must defend your department's expenses. Marketing funds can't be reduced because without advertisements you can't possibly generate demand.
Need some tips or pointers on how to write memo.
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