Situational Case

A small women´s clothing store "Marvin", which has been in existence for 1.5 years, is in a critical situation.
Its main target audience: women aged 25-35 years. Price category: $30-65 per unit. The flow of customers is small, so the focus is mainly on regular customers - they are given a 5% discount.
2 months ago, a stock store of European clothing opened nearby with daily increasing discounts, the assortment is updated every week. They hand out flyers in front of the store and in crowded areas.
After this, Marvin’s profits fell sharply and the number of regular customers decreased, since the target audience is the same as the neighboring store. Soon, several salespeople quit due to salary cuts (as the percentage of sales decreased).
Questions and tasks
1. Analyze the marketing situation and describe the marketing problem facing Marvin.
2. Develop a set of measures to solve the problem.