Crème Couture Bridal Inc.: Revenue Segmentation
(6 pages of text)
External pressures from an increasingly saturated industry were forcing the president of Crème Couture Bridal Inc. to contemplate the future of her business. Crème Couture operated as a retail outlet for memorable lifestyle events, selling wedding dresses, bridalwear, formalwear, and various accessories to women of all ages. The president wanted to develop an expansion strategy that would best position Crème Couture for long-term success. Specifically, she wanted to assess the profitability of each revenue segment to determine which segments should be further enhanced or eliminated. She wanted her expansion strategy to align with her long-term goals of attracting more clientele, providing exceptional customer service and increasing net profit.
This case serves as an introduction to segment reporting in an undergraduate managerial accounting course. After completion of this case, students will be able to do the following:
- Complete an industry, competitive, consumer, and corporate analysis.
- Perform a sub-unit evaluation to understand the costs affiliated with each segment.
- Make appropriate recommendations to achieve the business goals of the company’s president.
Canada, Small, 2018
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