L'Eggs Case Analysis

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Overview: When nylon was developed in 1938, L'eggs products inc a subsidiary of the Hanes Corp was among the first to identify its potential in the hosiery market. Years of research led to the development of seamless hosiery and enabled the company to pioneer the introduction of pantyhose in the mid 1960s. Situational analysis: Markets: L'eggs market consisted of young and middle aged women that were more professional attire, in the late 1960's women were granted more freedom and rights than before and due to the Vietnam war they were able to hold more professional positions and that served this market really well. Customers: There was a high satisfaction rate among the customers due to the high quality and for the fact that L'eggs products were available everywhere and women or even their significant other can pick them up while shopping for grocery items. Competitors: The hosiery market had more than 600 brands that were selling in outlet shops some of them are private and house brands. and that created more competition for L'eggs therefore more spending on promotion. but L'eggs major competitors were Burlington industries and Kaiser-Roth corp. these competitors were trying to attract customers to their products by price, they offered hoses for $0.99 which is cheaper than L'eggs, but they were not offering the same quality or even availability of product as L'eggs. Nonetheless L'eggs kept their promotional spending in a try to maintain their market share and even increase it. Macro environment: L'eggs were operating in an environment that was recovering from a lot of recessions, Vietnam war was ending, unemployment rate was high, inflation rates are increasing and women were getting more rights that before so bottom line the way of life was changing and there was a lot of uncertainty in the market. Problems and opportunities: L'eggs were facing some

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