Introduction Korra Dancewear’s marketing challenge is to increase brand awareness. Korra has been in business for three years, but their website does not have enough traffic to generate a decent profit. The owner hopes to be able to make a $1000 to $2000 monthly profit by January 2014; in order to achieve this goal, the distribution method, promotional strategy, and product line extension must all be taken into consideration.
When considering Korra Dancewear’s finances, operations, marketing, and human relations, I notice both strengths and weaknesses. The premium price of Korra apparel is justified by its high quality material and the fact that it is made in Canada, but at the same time it has higher production…show more content… While professional dancers would wear through apparel quickly, their loyalty to existing brands limits the impact a new brand like Korra Dancewear can make. The best target market for Korra Dancewear, therefore, would be children. Since children are constantly growing, their parents would need to buy them new dance clothes quite often. They are also an ideal market because they care little for the brand of their dance clothes, placing more importance on exciting designs. Finally, since peer influence is a major factor, children can influence others at their dance studio to buy Korra Dancewear as…show more content… This would allow a lower price point, in order to encompass children of lower socioeconomic class as well. Lowering prices also affords Korra with a competitive advantage, as affordable dancewear is difficult to find in Canada. I would advise Korra to begin their line with various patterns of bodysuits. If a manufacturing cost of $5.50 is assumed, I would recommend Korra sell its dancewear to retailers for $13, since retailers require a 50% markup on apparel, and this would allow a competitive retail price of $19.50 (see Exhibit 2). Korra Dancewear will have a unit contribution of $7.50 for each bodysuit sold in a