·Read this text taken from a book on marketing
management. ·Choose the best sentence to fill each of the
gaps. ·For each gap (9-14), mark one letter (A-H) on your Answer
Sheet. ·Do not use any letter more than once.
The Development of the Shoe Industry
From
1900 until 1940s, approximately 400 shoe manufacturers were operating in New
England; by 1985, only 10 percent remained. Despite the market pressures,
Murrayhill remained profitable and had even diversified its distribution
channels by establishing direct mail cataloging in the late 1970s. Murrayhill
survived by producing a premium-quality product that was difficult to duplicate
and that appealed to a narrow market segment willing to pay high prices for
Murrayhill quality. As fashion became a more important component of men’s
shoe purchasing behavior and casual styles became more popular, the company
broadened its product line to include several fashionable and light-weight
styles that retained the famous Murrayhill quality. (9) In
1985, the men’s premium shoe market was considered to include brands with a
price range of $ 75 or higher. Murrayhill, Inc. Hohnston & Murphy,
E.T. Wright & Company, Alien Edmonds, and Florsheim were
the major domestic manufacturers producing premium shoes. Measuring market
share within the industry was difficult because so many of the manufacturers
were private companies, like Murrayhill. (10) Alien Edmonds,
headquartered in Wisconsin, relied primarily on nonproprietary retail
outlets for its distribution. Its advertising was sizable, with
expenditures in $1 million to $2 million range. (11) .Alien
Edmonds also operated a small direct mail catalog business, the majority of
whose costs were handled by Edmonds’s retail accounts. E.T. Wright &
Company, headquartered in Massachusetts, operated an extensive direct mail
business and, like Murrayhill, relied on non-proprietary distribution.
(12) Florsheim’s product line covered several price points,
including those in the premium market. Florsheim was, by far, the
strongest competitor, with an estimated market share of 18 percent and both
non-proprietary retail distribution channels. Hanover, a medium priced
shoe manufacturer, also was noted for its direct distribution system.
(13) .Imports accounted for a 50 percent share of the total
men’s shoe market. Bally, the strongest competitor, was the leading imported
brand in this market before 1975 and maintained a market share of close to 25
percent at that time. By 1985, other imported brands included Baker
Benjes, Cole Ham, Ferragamo, Bruno Magli, and Church’s. (14)
.Most of the imported brands were lighter in weight and designed to
appeal to more fashion-conscious consumers. A The
continued labor intensity of shoe manufacturing made the industry vulnerable to
lowe-priced imports. B In addition, these companies were
not always in direct competition because distribution channels
differed. C Despite the market pressures, Murrayhill
remained profitable and had even diversified its distribution channels by
establishing direct mail cataloging in the late 1970s. D
Johnston & Murrayhill, on the other hand, operated proprietary retail
outlets and experimented in the mail order business for both men’s and ladies’
premium shoes. E Most of this was spent promoting brand
name awareness to consumers. F The company owned over 100
proprietary retail stores, operated a successful mail order business, and
produced private label footwear for J.C. Penney&Sears, Roebuck department
stores. G The imported products differed from the domestic
premium brands, however. H Nonetheless, Murrayhill faced
several strong domestic competitors and unrelenting price competition from
imports.