Ghulam Dastgir

Prof:

Prepaid by group of superior university Lahore Naeem hayat

9232

Junaid bin farhat

9279

H.Ghulam Dastgir

9288

Sayed zohaib

9285

Muhammad ahmad

9209

Introduction of company VF Corporation Incorporated 1899 as Reading Glove & Mitten Manufacturing VFM corporation sells jeanswear, intimate apparel, daypacks, and workwear.The corporate headquarters are in Greensboro,North,Carolina.PublicCompany,Company Employees: Sales Stock Exchanges: New York Pacific

45,100 $2.61billion

VF Corporation, one of the world’s largest publicly owned fashion apparel manufacturers, designs and produces jeans, sportswear, intimate apparel, and occupational clothing for both the U.S. and international markets. The company consists of several operating units, each of which is responsible for a different set of product lines. The Lee Company, the firm’s largest unit, and Blue Bell, Inc. manufacture denim and other casual apparel for adults and children under the Lee, Wrangler, and Rustler brand names. Bassett-Walker Inc. specializes in activewear, such as sweatshirts, jogging suits, and jackets. Jantzen Inc. manufactures the company’s line of swimwear and related sportswear, while the Red Kap division markets a variety of apparel for industrial use. Vanity Fair Mills, Inc., produces lingerie and loungewear items under the Vanity Fair brand name.

In February 1993 Tom Wyatt, President of Vanity Fair Mills (VFM), received a progress report on the company's "flow replenishment" and "quick response partnership" programs. The report, prepared by Marty Abercrombie (Manager of Flow Replenishment), summarized VFM's accomplishments during 1992 in implementing flow replenishment agreements with retailers. Retailers who participated in these

partnerships sent sales data from their point-of-sale systems (POS) via electronic data interchange (EDI) to VFM periodically. VF Corporation was the largest publiclyowned apparel manufacturing company in the United States. Blue Bell's product lines included Wrangler, Rustler, andGirbaud Jeanswear; Janzen and Jan Sport swimsuits and sportswear; and Red Kap, a producer of occupational apparel. As a result of the Blue Bell acquisition, VF sales increased from $1.54 billion in 1986 to $2.57 billion in 1987. Subsequent acquisitions included Health-Tex, a children's wear producer (1990); Valero, a French lingerie manufacturer, Green Cotton Environment, a producer of "organic" cotton sportswear, and Vivesa, a Spanish lingerie producer.

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Concentration on "basic" and "basic fashion" apparel products.

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Well-known brands that offer superior customer value.

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Multiple brands for different distribution channels.

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Market Response System.

Both Lee and Wrangler had long-established international operations, including manufacturing facilities in Europe. As noted earlier, VF acquired the Valero and Vivesa intimate apparel companies in Europe in 1992. VF's other product groups were not significantly involved in international markets. It was expected, however, that international operations would grow in importance in the future. Consumer attitudes toward intimate apparel were evaluated in the study by giving each respondent a list of 68 product benefits and asking her to rate their importance on a 5-point scale. All of the consumers participating in the study rated product quality, comfort, and fit as very important. There were significant differences, however, in their ratings of other product benefits. Based on these benefit importance ratings, the study identified six attitude segments. Among these, four were of particular interest: "Brand Buyers," "Sensuous Buyers," "Romantic Buyers," and “Cost-Conscious Buyers." These four consumer segments are described briefly below: •

Brand Buyers.

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Sensuous Buyers

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Romantic Buyers

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Cost-Conscious Buyers

Problems VFM was the only domestic producer that marketed products in all six intimate apparel product classifications. Within the Vanity Fair Brand (VFB), the product assortment in each classification (i.e., the number of different styles) was among the broadest in the industry. As a result of the broad assortment of styles, the VFB product line was extraordinarily complex. Tom Wyatt explained that intimate apparel was a "SKU-intensive business," in that each style was produced in a range of sizes and a choice of colors and prints. The complexity was especially great for bras, which were typically offered in from 3 to as many as 8 girth sizes (32, 34, 36, etc.) and two to four cup sizes (A, B, C, etc.). Taking into account all of the various combinations, the Fall 1991 VFB line of bras included: • 50 different styles • In an average of 10 sizes (strap/cup combinations) • In an average of 6 colors or patterns Sara Lee's competitive position was strongest in lower-priced distribution channels; it was a relative newcomer to full-service department and specialty outlets. List prices of the Hanes Her Way brand were 5-10% higher than VFM's Vassarette, but frequent promotions made the actual average price about the same.

VFB products distribution VFB products were distributed through full-service department and specialty stores as well as J.C. Penney. During the late 1980s Penney had repositioned its stores and merchandise assortments for greater fashion appeal. As a result, many or most Penney stores were basically moderate-priced department stores. Altogether VFB products were present in 2,400 accounts and 7,700 "doors" (store locations) nationwide. VF Corporation's Market Response programs began with a company-wide conference held in the fall of 1989. At that time Chairman Larry Pugh established the goals mentioned earlier: a 40% reduction in cycle time, 30% reduction in inventory and a 20% cut in unit cost. Pugh also called for a new spirit of cooperation between apparel producers and retailers. Traditionally, he said, their relationship had been largely adversarial, resulting in increased costs for both sides. Implementation of QR, however, would require mutual trust. • Flow replenishment systems (see below) • Continuous product development (see below) • In-store testing of new products

• Sales forecasting • Distribution center requirements • Partnerships with fabric and trim suppliers • Modular manufacturing • Activity-based costing (to provide better measures of product costs) • Improved workplace ergonomics. Miriam Bakker, a VFM District Sales Manager, explained that an account manager's responsibilities included: • Developing a sales and inventory plan for each account, for each sixseason. • Making sales projections for new products. • Developing plans for advertising and sales promotion events. • Monitoring actual results vs. plan on a continuous basis.

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Wyatt knew that the various suppliers and retailers participating in QR programs we reutilizing different combinations of management systems (vendor vs. in-house) and shipment Patterns (direct to stores, cross-docked, etc.). He wondered which approach would produce the greatest benefits for VF and its retail accounts in terms of inventory turnover, in-stock position, markdowns, and operating costs. agreements with major retailers: Describes the "Quick Response" program developed by Vanity Fair Mills (VFM), a division of the VF Corp. Beginning in 1989, VFM reorganized its manufacturing systems, invested heavily in computer and telecommunications equipment, and formed "partnership" agreements with major retailers. These changes were designed to improve inventory turnover, reduce markdowns, and cut down on operating expenses in the distribution of intimate apparel. The improved efficiency of the distribution channel would, it was believed, yield benefits for VFM and its retail customers. In early 1993 VFM management reviewed their progress to date in implementing Quick Response

Despite this positive outlook, VF Corporation faces a mature market for its denim jeans business, which will require major strategic initiatives to sustain growth in the future. The company is focusing on a combination of new product development, cost reduction, and inventory management measures to strengthen relationships with retailers and enable the firm to respond more effectively to market needs. VF’s goal is to provide the right styles and quantities of products at the right prices on the retail shelf at all times. The company’s ability to meet this goal will be a key determinant in the success of VF’s future activities as it strives to maintain its leadership position, build market share, and increase shareholder value.

Frist companyt should take some steps for the company development thes importance steps may company solve the problem,VFM should make a good advertisment for the company and every new products permotion Traditionally, intimate apparel manufacturers had relied primarily on "push" from retailers to generate sales. "Pull" created by media advertising was of little importance in comparison with in-store displays, local retail advertising, and personal sales support. Marketing communication programs were changing, however, with national advertising outlays rising. Manufacturers' advertising was heaviest for bras, which were increasingly marketed in ways similar to so-called" packaged goods" such as soft drinks. Estimated national advertising expenditures by intimate apparel manufacturers. Over the last decade, power in the retailing of packaged goods has shifted from manufacturers to wholesalers and sellers. One result has been an increase in consumer and trade promotion. But many trade promotion practices are costly to manufacturers, retailers, and eventually consumers. The authors single out forward buying in the grocery trade and offer evidence of the costs of this practice to the distribution system as a whole. They suggest a policy called "everyday low purchase price", designed to smooth the peaks and valleys of demand and reduce the costs of distribution