Case study: Read the case study and solve the questions mentioned at the end of the case study. Mirela Fashions In 1971, a highly ambitious young woman returned to Cyprus from Greece after obtaining a degree as a fashion designer. With the help of her parents, she bought a shop in the main shopping area in Limassol. The shop specialized in made-to-measure garments for women. The clientele at the time included relatives, friends and customers who wanted to select the design of their clothes and have them specially made. Gradually, the business gained a reputation for high quality and elegance. As the customer base increased, the need to employ more dressmakers became apparent. The owner decided to employ both qualified and untrained women, and according to their knowledge they were assigned to specific tasks. Slowly the volume increased as more people came to the south part of Cyprus following the partition of Cyprus in the 1970s. At the same time the troubles and uncertainty in the Middle East brought wealthy Lebanese to the country, which transferred their businesses to Cyprus. As a result, boutiques started to emerge not only in Limassol but also in other towns, for example Nicosia and Larnaca. The owner identified a market opportunity that developed from various environmental changes: to become a supplier of womens clothes to different boutiques and shops across the country. In order to cope with the high demand, the owner moved out of the shop to a specially converted area at the centre of the town. She bought more equipment, and hired more dressmakers as well as salespeople. The owner of the business also designed the clothes. The business was named Mirela Fashions. Orders were placed after the owner exhibited designs to customers that varied according to the season. P.T.O. More and more boutiques opened and the competition among them intensified. Subsequently, the owner had to develop different designs for each boutique. The business was booming and had gained a reputation acquired through word of mouth and participation at fashion shows across the country. By the early 1990s the Lebanese had left Cyprus. At approximately the same time, as part of the preliminary stages of the entry requirements of Cyprus to the EU, the government gave permission to import foreign brands such as Benetton, Marlboro, Polo, Calvin Klein and Marks and Spencer. Cypriots became obsessed with imported clothes. However, not all could afford them or were interested in buying them. Big clothes factories started closing down since the demand for local garments started to decrease. Local manufacturers could not export abroad since their prices were not competitive enough due to high labor costs. Many boutiques started closing as well. Some of those that remained built up stocks of both locally made clothes as well as imported brands. The owner had to dispense with the services of some people in order to keep its costs down. It was time to find a new niche for the business. And indeed, a new niche was found. Despite the fact that Cypriots showed much interest in imported clothes, demand for made-tomeasure garments was equally high. At the same time, the owner spotted a new opportunity: the increasing demand for made-to measure wedding dresses. The reputation of the business acquired over the years for high quality and attention to detail made it easy for the owner to attract customers from these two segments of the market. Meanwhile, the owner identified another opportunity: the big carnival festival in Limassol that lasts for two weeks in February. For two whole months the entire business operations are concentrated on the design, development and production of fancy dresses for shops, private organizations (e.g. the Rotary club), big and small groups and individuals. The business has been in operation for 28 years, and during that time it has had to change in accordance to the market changes and fashion trends. Contributed by Ioanna C.Papasolomou-Doukakis

Question Number 2 B: Does the organization appear to have a marketing forecasting and research? Explain. If not suggest some methods of forecasting. (500 words)