Dilemma & Decision
Memo
Date: October 7, 2006
To: All staff
From: Sally Spires
Subject: Marketing
As you may be aware, the companyhas seen sales of its luxury handbags decline in recent months. This is due to a number of reasons, for example, the number of cheap fakes of our Malu andTimely handbag models flooding the market. Inaddition, while manycustomers still associate our brand with exclusivity and luxury, we are awarethat the brand is seen by increasing numbers of people as being old-fashioned.
Recently, however, the Clearly Chic brand has become popular with young hip-hop artistsand football fans, a development that has opened up the possibility ofincreased sales for the company―in the short-term at least. However, it hasalso increased the risk of losing loyal customers, and our valued brand image.

