The sales force did not view this development with alarm. In which the Gold Toe brand was distributed through 184 department stores or department store chains, men's socks created by one major competitor, Burlington, have been distributed via more than 10,000 retail outlets.
Although national marketing was relied heavily by most manufacturers of men's sock during the United States, Great American Knitting Mills engaged in no national marketing for the Gold Toe brand. Good American Knitting Mills relied on local advertising to promote the Gold Toe brand. The department store accounts were responsible for each the development of this kind of promoting and the conduct from the promoting campaigns. Very good American Knitting Mills agreed to contribute one half from the cost of all this sort of advertising. The quality and intensity of advertising for Gold Toe brand men's socks varied broadly by market as a result of this policy.
Great American Knitting Mills charged a premium price for Gold Toe brand socks. The company also maintained the high quality level high for ones products.
There have been six folks within the Gold Toe brand sales force. The sales force was close knit, extended in longevity with Very good American Knitting Mills, and on unusually beneficial terms in the company's department store accounts.
Thus, the six member Gold Toe sales force compared having a sales force of more than 100 people applied by 1 from the company's competitors.
Some retail store accounts unable to achieve access to Gold toe brand men's socks will discontinue distribution arrangements for your company's Arrow brand men's socks which in turn will impinge on a company's production economies.
The increase in sales volume inside context of item units would cause additional production economies.
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