1. Define the problem. This consists of three elements:

a. goal-what does the company need to do to succeed?

b. current situation-what is relevant and important about where the company is today regarding the goal?

c. immediate decision-what is the scope of the decision to be made to reach the goal?

1. Identify the criteria you will use to assess various possible courses of action.
2. Identify alternative courses of action to solve the problem.

Case: Mudd Jeans Sales of women's jeans total $7.8 billion. Jeans retailing for less than $50 make up 76.3 percent of this market. Jeans no longer are just weekend or home wear. For many they are a fashion statement and appropriate for the office and a night out. For teens and tweens, jeans are an essential component of a girl's wardrobe. The Mudd jean brand was founded in 1995 by Dick Gilbert and then sold in May 2004 to Hong Kong-based apparel manufacturer Tack Fat Group. The new owner's goal was to make Mudd into a $1 billion business by pushing into Asian markets. The venture failed. In April 2006, the Mudd brand was sold to Iconix Brand Group. Neil Cole, former Chairman and CEO of Iconix, stated, "We have a lot of great opportunities with Mudd. We want to grow the different prod- uct categories. Mudd has an 84 percent brand awareness among young women." After acquir ing the Mudd brand, Iconix used marketing research to identify the "Mudd Girl." This girl is be- tween the ages of 11 and 17. She has the following mindset: . She is sassy and daring. . She is part free spirit and part fashionista. . She is into finding herself, knowing her true voice. . She is a girl like every other, yet unlike any other. . She is self-empowered. . She wants to make a statement and a difference. . She is independent. . She wants to accomplish something in her life. . At the end of the day, she wants to be true to herself. . She is real. ated git/www.shutterstock.com To further understand the teen market, Iconix obtained a survey conducted by Ameri- can Demographics. Entitled "Rules of Advertising to Teenagers," this study highlighted the most important concepts for reaching the teen market