You are to assume the role of the director of merchandising and branding for Memorial, a retail apparel chain with over 2,000 physical store locations. The senior vice president is considering partnering with a widely-known and iconic company, but wants you to first analyze the effect it would have on Memorial's product management.
Memorial opened its first store almost 50 years ago and began selling casual apparel and accessories to both males and females. When it first opened, the retailer partnered with the iconic denim jeans brand Veli. Memorial had a variety of its own merchandise, including t-shirts, sweatshirts, casual pants and accessories, but relied on the brand recognition of Veli jeans to attract customers.
For the first 10 years, Memorial relied on Veli for its assortment of denim jeans. Then in the mid-1980s, Memorial began producing its own brand of denim jeans and did not renew the partnership with Veli. Since that time, Memorial has added to its product mix, including business and professional apparel, kids and baby apparel, and a line of athletic wear.
Veli has seen a decline in its revenue due to the popularity of athletic wear and leggings. Males and females are choosing to wear ultra-casual apparel in their downtime rather than denim jeans. In response to this trend, Veli wants to once again partner with Memorial and have Veli denim jeans part of the retailer’s merchandise inventory.
The senior vice president is considering renewing the partnership from years ago. It would be a nod to Memorial's beginnings and would be perfectly timed with its 50th year anniversary. However, the senior vice president is concerned about how the addition of Veli denim jeans would affect Memorial's product mix and sales. The senior vice president wants you to examine and discuss:
- How would adding Veli denim jeans affect Memorial's product mix?
- How could Memorial use the Veli brand in positioning?
- How would adding Veli brand merchandise build Memorial's clientele?
- What are the risks involved in partnering with Veli?
