Colonial Clothes Ltd. is a small family business started in the 1920s. It built its business selling ranges
of clothing to Europeans living in the country. Although the business does still supply to the older
members of these European families it is a ‘dying market’, which is threatening the continued
existence of the business.
Not having marketing expertise, it was decided by the family board of directors to employ a marketing
agency to give them new direction, but at the same time to retain the business’ traditional values.
The agency chosen, after a number ‘pitched’ for the business, has since ignored the company’s brief
and is promoting the business to unsuitable customer sectors, which is degrading the company’s
reputation.
Critically examine the options and recommend a strategy by which Colonial Clothes Ltd. can
terminate the association and seek compensation for the agency’s actions.

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