Hart, Schaffner & Marx Case Essay Example

is deemed unlikely considering the contrasting needs of traditional suit customers in comparison to typical separates consumers.

It is crucial to examine whether the potential customer base for separates aligns with the existing customer base for traditional clothing. If there is a match, the introduction of a new separates line might lead to self-competition and affect regular clothing sales. Similarly, the impact on HSM's present assets should not be ignored. A significant asset is the company's image and brand identity which is recognized for its tailored service accompanying its product range. Typically, HSM shoppers lean towards having an informed sales representative assist them in choosing high-quality fabric clothing.

Moreover, the prestige of the brand carries great significance. HSM clients, who typically don suits at the workplace and client interactions, regard a flawlessly tailored high-grade suit as essential in maintaining a professional appearance. The "professionalism" impression that HSM clients require also extends to bespoke tailoring. Even a novice can spot a ill-fitting suit, more so an executive who expects their attire to reflect their status. Consequently, it is crucial for HSM clients that their garments are impeccably tailored.

Because of the expectation of bespoke tailoring upon acquisition, HSM suit trousers are not completed at the hem. Customers in this segment may also have demanding schedules during the day but greatly appreciate the convenience of customized service and professional guidance, and are willing to bear a slightly higher cost for these benefits. Conversely, the consumer for separates wears standard suits infrequently and prioritizes affordability. Individuals who prefer separates do not mind spending time shopping for their desired items. They are considerably less bothered about status symbol linked to their purchase.

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client may be in search of a suit that is more affordable for a wedding event instead of a business meeting and display less emphasis on professionalism when interacting with family than with prospective clients. Due to considerations of cost, the separates customer might not need the tailored service an HSM customer would desire. This kind of customer may not necessarily identify the need for superior fabric quality and might favor a less expensive fabric if it reduces the overall cost, as opposed to an HSM client who might insist on higher quality fabric.

Exhibit 3 emphasizes a notion chart that relies on fabric quality and bespoke service. Given the significance of the prestige linked with its suits to its clientele, launching similar "high-quality" individual pieces may risk estranging the existing audience. Despite these "high-quality" individual pieces potentially matching in terms of fabric quality, it’s possible that the typical HSM customer may disagree and perceive the company’s products as failing to maintain the prestige they used to have.

Indeed, due to HSM's offerings, other corporate leaders might reconsider their perception of "status", which may contradict the sophistication the buyer wishes to project. HSM's reputation, successful for over a hundred years, is a result of catering to a specific market that not only cherishes its products but also the experience its stores provide. High switching costs related to bespoke service make it strenuous for rival businesses to sway HSM's clientele.

It's highly likely that the competitive edge may diminish if customers adopt a different perspective due to new offerings. The financial repercussions of this are demonstrated in the subsequent exhibit, which displays the cost of implementing the separate strategy.

As per exhibit 2, the necessary volume for breaking even with increased capacity significantly escalates, implying that HSM would need to inundate its stores with fresh, more affordable stock to potentially justify the additional expense. Consequently, this would shift the company's positioning on the perception map.

The text does not specify the desire of HSM's customers to pay for a custom-tailored service. Nevertheless, given HSM's prosperity in such a varied, low-profit, and highly-competitive sector, it's clear that they see value in the service provided. Subsequently, their perception definitely falls in the higher section of the 'personalized service’ perception map. These factors indicate that the firm may not be able to court the new separates market without losing some or several of its existing customers. The cost breakdown further corroborates that the company would have to significantly modify its inventory for case 2 if it chose to enter the separates market.