HA'S DESIGNS Martha Millwork needs to make some important decisions regarding her clothing manufacturing business. Started as a hobby in the mid-2010 the business has grown to the point where she has opportunities to expand the scale of operations so that it can become a full-time commercial enterprise. She is unsure of which markets to pursue, which marketing channels to use, and the extent of product line that would be the most effective. Martha lives in Grenfel Saskatchewan, and she had started sewing clothing for herself and her children in 2009. Her skill and talents were first shown publicly during the summer Agribition celebration in Regina in 2018, at a fashion show she organized. As a result of this initial show, she received orders from interested buyers, and the hobby soon became a part-time business that she operated out of her home in Grenfell Company sales have grown steadily since that time and reached close to $30,000 in the latest fiscal year. Although this only brought a profit of $5000. Martha has fine-tuned the business so that an increase in sales also means a larger profit percentage. Martha's Designs specializes in high-quality, fashionable women's and men's coats made from canvas, denim, and Hudson's Bay and Pendleton wool blankets. The coats are designed to be comfortable, sophisticated, and original. They also feature tur and leather trims Several coat designs are available, and Martha modifies existing designs and creates new ones on an ongoing basis. The costs are well-made. with high-quality materials, and are priced from $300 to $600. The clothes are fashionable and modern. This blend of fashion, function, and tradition make a unique finished product that she has successfully sold to buyers from across North America and Europe. As the owner manager, Martha designs the coats and cuts the fabric. She usually orders materials only after receiving an order for a particular coat. The cut pieces, trim, and notions are sent to one of two part-time local seamstresses who do the sewing in their own homes. Martha carefully inspects each garment on completion. The purchasing of materials is an important aspect of the production process, since the cost of materials is such a large part of the cost of goods. Fabric is purchased at the lowest possible price, but Martha is aware that better prices are available if she increases the size of her orders. The unique trims used on the coats are purchased primary from local suppliers. Recently, Martha was approached by the town of Wolseley (estimated population 1000), which is about 15 kilometres from Grenfel , to be a part of a sewing plant that the village is planning to establish. The village intends to purchase sewing machines and other equipment and contract out the sewing services of the workers to interested firms, such as Martha's Designs, Martha realizes that to make such a change in operations worthwhile, Martha's Designs will have to increase its production volume dramatically. This proposal is attractive because of its low financial risk, the opportunity for increased production efficiencies, and the flexibility to produce a greater volume of coats. Martha's marketing efforts to date consist primarily of fashion shows, displays at events, a basic website, newspaper advertising, a small amount of social media activity, and a brochure. Each year she organizes several fashion shows in Alberta, Montana, North Dakota and Saskatchewan. In the past, some of these were in conjunction with other events, such as the agricultural exhibitions, rodeos, and athletic events. Each show is the result of coordinating the individual efforts of models, commentators, hairdressers, make-up artists, sound specialists musicians, and publicity staff. Displays are set up at various trade shows and even at events such as Canada Day celebrations. In addition, a small amount of advertising has been done in newspapers, such as the Regina Leader Post and other local papers. Martha uses advertising to Pus worthwhy. Marthas Designs will have to increase its production volume dramatically. This proposal is die because of its low financial risk the opportunity for increased production eficiencies, and the flexibility to produce a greater volume of coats Martha's marketing efforts to date consist primarily of fashion shows, displays al events a basic wenute newspaper advertising amount of social media activity, and a brochure Each year she organises several fashion shows in Net, Montana, North Dakota and Saskatchewan. In the past, some of these were in conjunction with other events, such as the agricutul exhibitions.rodeos, and are events. Each show is the rest of coordinating the individual efforts of models.commentators hardest makeup sond spects musicians, and publicity start Displays are set at various trade shows and even events such as Coned Day Celebrations addition small amount of advertising has been done in newspapers, such as the Regina Leade Post and other local papers Marthauses advertising to promote general wareness and to promote good community relations With a potential increase in production capacity. Martha has to plan the company's bure marketing strategy. She is confident that demand for her company's unique clothing exists and that volume could be increased enough to result in an mwen purchase savings, which would lower production costs. A major decision is which marketing channel to use Unt now. Sales have been made directly to purchasers of the clothing Martha thinks she might achieve an increase in volume by selling thought stores of clothing wholesalers. she is unsure which type of retail store would most effectively reach her target customer An alternative is to continue sering directly to customers but to expand her online presence Her current website amounts to a few pictures and her contact information. She would have to invest roughly $10,000 to have a fully functional website, and she has done very little to promote her business on social media. She is wondering if creating a website and using social media wouldn't lead to a signico increase in sales, Martha is also our people would buy her unique products without seeing them in person Martha is also thinking about increasing the sales of men's and children's coats. Although this strategy would add to her product line and create additional design work it could also make the line more marketable by broadening its appeal A final decision to be made is how to support the sales efforts. Should she use more advertising or should she concentrate on setting up a booths at trade shows? There are many trade shows and deciding which to attend would be ficut As Martha considers the alternatives available to her, she is beginning to realize that her company is at an important rods--to contin its growth, it would have to enter new markets and expand production capacity. Martha's Designs is a cottage Industry on the verge of becoming a small manufacturer Questions 1. Discuss the implications of Martha Milwork's potential expansion 2. Evaluate the distribution channel options and promotional implications associated with them if Martha's business expanded