Privilege

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"Privilege is the brand name of theproducts launched into the Calimarket by the Jaramillo family. Theyoffer custom-made and regular-sizegarments for men and women withan emphasis on personalized customerservice. Privilege features thelatest fashion designs, manufacturedin compliance with high qualitystandards. Their product portfolioalso includes both casual wear andformal attire for executives. Althoughthis brand had no direct competitors,other exclusive brands and designerswere among the group considered by the target buyers of Privilegeproducts.The company´s management nowfaces the following challenges: i)elevated fixed costs (50% machineoccupancy) which have a negativeimpact on profitability; ii) the recentopening of a new point of purchasegenerating lower revenue than neededto ensure its self-sustainability;iii) low recognition by the targetmarket; iv) financially strong competition;and v) widely recognizedand well-established brands offeringproducts at competitive prices."

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