Operations Management

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Case study of Dupont: Marketing of “Disappearing” products.

1. What are the markets for Lycra?

The market for Lycra is vast. It’s not easy to pinpoint a particular market as Lycra is being used by different manufacturers such as Wacoal, Liz Claiborne, Macy’s, etc. and they are targetting different consumers.

In general, the market for lycra is the manufacturers of garments and retailers. Being specific, Its market are Baby boomers because as they are getting aged, they are gaining weight and losing their shape despite the diets they do. Since lycra is soft and strechable product, it easily streches and gives support, lift and control in bodywear which are significant for baby boomers.

Another market for lycra is the female or women. A marketing research in europe found out that women preferred garments with durability, versatality and comfort. Lycra had all these qualities and therefore liz, a giant in women’s clothing collaborated with Lycra to launch Liz and Lycra.

2. How does the “selling-buying” relationship that occurs when Liz Claiborne wants to team up with Lycra differ from that in which a consumer purchases a garment that contains Lycra?

The “selling-buying” relationship between when Liz Claiborne wants to team up with Lycra differs as it’s a Business to business selling buying relationship. Liz uses Lycra’s product in its women clothing which ensures profit for both Liz and Lycra. On the other hand, when a consumer purchases a garment that contains Lycra, it is Business to consumer selling buying relationship. In B2B, 2 businesses are collaborating to generate funds, while in B2C, Lycra is making up its own market of consumers to generate revenues and to maintain its brand image and there is a basic buyer seller relationship between Lycra and consumer.

3. What type of buying situation occurs when Liz Claiborne wants to team with DuPont to obtain Lycra for the Liz and Lycra line?

When Liz is teaming up with Dupont...
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