GREAT AMERICAN KNITTING MILLS

At the time of this case, in mid1981, the management of Great American Knitting Mills was reviewing the situation related to the company's distribution policy for its Gold Toe brand men's socks line. Essentially, the distribution policy for Gold Toe socks provided that the products would be distributed through one leading department store (or department store chain) in each major city of the United States. In exchange for the exclusive distribution arrangement, the department store organization was expected to aggressively promote Gold Toe brand socks. At the time of this case, Gold Toe socks were distributed by 57 of the top 100 department stores in the United States in the nation's largest cities, and by 127 other department stores serving small cities in the country. The Gold Toe brand was the only men's socks brand in the country to which an exclusive distribution policy was applied.

Branding was a major problem for most manufacturers of men's socks in the United States. The Gold Toe brand, however, had relatively high brand recognition among consumers. Within the past two years (since mid1979), however, some manufacturers had begun marketing men's socks under designer labels, and these designer labels were beginning to develop some degree of brand recognition among consumers. The sales force for Gold Toe brand socks had reported that several of their major department store a

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ills had introduced a second line of men's socks under the Arrow brand to distribute through retail establishments that did not carry the Gold Toe brand. The Arrow brand had not garners success similar to that of the Gold Toe brand; however, common production of the two brands enabled the company to achieve cost savings. The Central Issue The central issue confronting the executives of the Great American Knitting Mills in mid1981 was the question of the company's distribution policy for the Gold Toe men's sock product line. While there were some strong arguments in favor of abandoning or modifying the company's exclusive distribution policy for the Gold Toe brand, there were equally powerful arguments favoring retention of the existing distribution policy for the product line. To provide a focus on the central factors affecting this issue, a SWOT (strengths, weaknesses, opportunities, and threats) analysis was prepared. This analysis is included in this cases analysis as an appendix. Alternative Strategy Options A number of strategy alternatives are available to Great American Knitting Mills in relation to the company's distribution strategy for Gold Toe brand men's socks. The most viable among these alternative strategy
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Approximate Word count = 2098
Approximate Pages = 8 (250 words per page)