Mimi Couturier is a design company that specializes in formalwear for women.The company is known for challenging fashion mores.The company's fashion innovators use computer-assisted design software to create what they think women should wear.The company regularly hires industry experts to examine construction work areas to find waste and inefficiencies that can be eliminated.Its fashion innovators have expanded the number of products it offers for sale many times.However,for the last two years Mimi Couturier has lost money,and it has had to lay off some of its work force.To avoid this occurrence in the future,the company should:
A) hire more retail efficiency experts to trace down any production problems.
B) increase its sales force to find more potential customers for the firm.
C) have someone to study its target market to see what needs and wants should be met by Mimi Couturier.
D) cut prices so that its prices are at least 10 percent below those of its competitors.
E) design more sophisticated products that use the latest computer-aided techniques.

Question

Quizplus · Accepted Answer

To avoid losing money and layoffs in the future, Mimi Couturier should conduct market research to understand the needs and wants of its target market. This will help the company to create products that align with customer preferences, increase sales, and improve profitability. Hiring more retail efficiency experts or designing more sophisticated products may not address the root cause of the company's financial troubles. Similarly, increasing the sales force may not be effective without understanding the market and creating products that meet customers' needs. Cutting prices may improve sales but could adversely affect profitability.

Mimi Couturier Is a Design Company That Specializes in Formalwear