Talbots Is A Classic Product Of Womens Fashion Essay Example

care of and treated like family. To uphold these objectives, Talbot's provides a personal shopping service and builds strong relationships with customers through personal phone calls and notes.

The service we offer fulfills our mission statement and supports our credo. In the future, Talbots will close their men's and kid's divisions worldwide, focusing on women's apparel that is fashionable and aligned with the trends of our main customers. Our industry analysis, based on Michael Porter's theory of the Five Forces, helps us understand how to compete in our market. These five forces include the threat of substitute products, the entry of new competitors, the intensity of competitive rivalry, the bargaining power of customers, and the bargaining power of suppliers. The Porter diagram assesses market competitiveness by analyzing the impact of each of these forces on the company.

The first Force, Threat of Substitution is influenced by the customers' ability to find an alternative method of accomplishing the same thing. If finding a substitute is simple and feasible, it diminishes your influence. This impact is particularly relevant to Talbots, more so than the other Four Forces. The fashion and clothing industry constitutes a challenging and fiercely competitive market. Talbots' stores are predominantly situated in close proximity to their rivals, particularly in shopping malls. Due to the intense competition in the market, Talbots heavily relies on their customer service and product quality as advantages over their competitors.

The Threat of the entry of new is influenced by the ease with which people can enter your market and compete effectively. If entering your market is inexpensive and requires little time, new competitors can enter quickly and weaken your position. However, if

there are strong barriers to entry, you can maintain a favorable position and take advantage of it. Talbots utilizes customer service and style by appointments, which is a personal shopping service that allows customers to reserve a fitting room stocked with pre-selected merchandise, along with a snack and a wardrobe worksheet.

The intensity of competitive rivalry depends on the number and capability of competitors. If you have numerous competitors offering equally attractive products and services, your power in the situation will be diminished. Additionally, if suppliers and buyers do not receive a satisfactory deal from you, they will seek alternatives. Conversely, if you possess unique capabilities that cannot be replicated by others, you will often have significant strength.

Talbots faces threats from both the second and third forces due to the constant emergence of new retail clothing stores. The market is saturated with numerous stores vying to capitalize on the latest fashion trends. These companies strive to gain any advantage possible in the market. Talbots' closest competitors, including Lane Bryant and B. Moss, have a comparable or larger number of stores to attract a broader customer base. While some of these stores entice customers with sales and special discounts, Talbots sets itself apart through exceptional customer service. Additionally, the fourth force, the bargaining power of customers, depends on the level of customer interest in a product. Talbots offers two sections in its store, featuring both regularly priced items and higher-cost collection garments.

Customers have a wider range of budget options, as sales are significant in offering discounts for unpurchased items. The bargaining power of suppliers, known as the fifth force, is determined by factors like the number of

suppliers for essential inputs, the uniqueness of their product or service, their influence and control over your business, and the cost of switching to another supplier. Your supplier choices and reliance on their assistance determine the strength of your suppliers' bargaining power. These forces collectively stem from the principles of supply and demand.

If a company becomes sufficiently large and influential, it has the ability to impose its own regulations on both suppliers and customers instead of depending on them for success. Wal-Mart serves as an exemplary illustration of this dominance as it dictates terms to its suppliers. When they realized that substantial savings, shelf space optimization, and environmental benefits could be achieved by eliminating cardboard packaging from deodorants, they notified their suppliers that only unpackaged deodorants would be purchased going forward - effectively eradicating the box permanently. Although Talbots may not possess the same level of bargaining power as Wal-Mart, they still assert their authority and manage to acquire top-notch materials which are sold at prices surpassing the industry average.

The retail industry faces both external and industry factors that impact their business. These external factors include consumer lifestyles, recessions, government regulations, and weather conditions, which can be either adverse or favorable. Industry factors that affect the retail industry include a large number of stores, continuous price promotions, decreasing customer loyalty, and minimal customer service.

Talbots seems to be ahead of their customers and suppliers as they continue to attract customers and serve a well-defined customer niche.

Talbot's clientele consists of educated individuals who are actively involved in their community and possess social and cultural awareness. Although they vary in age from teenagers to grandparents, they primarily fall

within the 35+ age group. Around 70% of Talbot's customers have attained a college education and a majority hold professional positions (Sullivan). With regards to the upcoming Fall 2008 collection, consideration will be given to catering to the baby boomer generation, as this demographic ages and encounters health issues.

As baby boomers retire from the workforce, their income will decrease and their everyday outfit, business attire, will transition to more comfortable casual attire. Nevertheless, their lifestyle will still reflect the characteristic baby boomer style. Currently, baby boomers constitute 26% of the U.S population.

The population (Valeo) consists of aging boomers who are fragile and dependent. This population will put significant demands on Medicare and require support from caregivers and the boomers' children. Consequently, there may be a decrease in sales. At the store level, weather plays a crucial role in driving or affecting sales, depending on the product categories. For example, rainy weather increases store traffic and boosts sales of all goods because it brings people into malls. On the other hand, snowy weather affects the timing and intensity of markdowns and can lead to stock out situations that replenishment cycles cannot address due to inherent time lag in many replenishment approaches.

According to Plunkett, both rain and snow have a positive impact on garment sales because they provide warmth to the fabric. A recession is characterized by a significant decrease in economic activity affecting the entire economy for more than a few months. It can be observed through indicators like real GDP, real income, employment, industrial production, and wholesale-retail sales. Typically, a recession begins after the economy reaches its highest level of activity and ends at its

lowest point. The period between the lowest point and the peak is known as an expansion (Plunkett). At present, there are several factors being enforced worldwide including consumer debt, higher gas prices, rising interest rates, and falling home prices.

The retailing industry will be impacted by various factors, prompting consumers to be more mindful of their spending habits. Additionally, the high gas prices will lead to an increase in Internet selling. Governmental regulations have multiple implications for the retail business, including taxation at both the Federal and state level. All governments possess the authority to collect taxes, while state taxation of personal and corporate income aligns with the federal system. The potential for double taxation poses a primary issue for corporations. Transactions are subject to Sales Tax, along with other taxes such as Property tax. Moreover, the company is influenced by the government's decision to raise the minimum wage, possibly reducing expenditure due to increased employee needs (Plunkett).

When expanding into different states, it's important to consider that managing a store may end up costing more than the profits it generates. It's also worth noting that frequent price promotions can have negative effects, such as diminishing the store's reputation and creating the perception that waiting for a sale would be more cost-effective. The industry strongly relies on customer loyalty and service as key factors in bringing consumers back to the stores. Talbot's prioritizes these aspects, which results in customers returning and providing additional marketing through word of mouth advertising.

Growth and profitability can only be accomplished by maximizing the productivity and profitability of the primary assets of the retail business: merchandise, people, and retail space. Both external and

industry factors have contributed to the increased challenges faced by retailers in maintaining the productivity of these assets (Sullivan). Among the three primary assets, merchandise productivity holds significant importance due to the constraints imposed by external and internal factors on people and space productivity. To achieve optimal merchandise productivity, it is essential to maintain an effective mix of products in stores through merchandise assortments. One potential strategy for Talbots to gain a competitive edge in an already fierce market is to enhance their market value by opening new stores near competitors as well as in untapped markets that do not offer alternatives to their target customers.

Another possible strategy for Talbots to consider is implementing more enticing sales to attract customers to their stores and website. By investing more resources and planning into advertising, Talbots may be able to increase both foot traffic in their physical stores and online traffic to their website. This can be achieved by addressing one of the common complaints among customers in the retail industry, which is a lack of knowledge about upcoming sales or current promotions. Talbots can take advantage of this market opportunity by offering more sales events and making them a central focus of their marketing efforts to attract customers. If Talbots effectively displays discounted items on the sales floor and website, a customer who saves 50% on one item will be more likely to also purchase complementary items.

This may be the optimal approach for Talbots. Offering a compelling sale that attracts customers is an effective strategy, but it can be even more advantageous if customers not only buy the sale item but also purchase additional items. Talbots

can enhance its success by displaying sale pants alongside pricier jackets or showcasing sale shirts with complementary, higher-priced skirts. These items are available both in stores and online, but pairing them could potentially boost sales for Talbots.

In today's shopping world, customers value convenience and efficiency. When a suggested item is presented to them, many individuals are inclined to make a purchase. However, even if they choose not to buy, Talbots only loses a small amount of resources in their efforts to implement this successful program. Currently, Talbots is actively working on implementing the recommendations mentioned above.

Talbots, led by a new CEO, has commenced with the regular updating of their website and implementing monthly sales in order to maintain a steady flow of merchandise within their store. Talbots is beginning to incorporate the aforementioned recommendations in various ways. However, several issues may arise as a result. Continuously having sales could lead to customers solely purchasing items on sale, causing a decline in profits as prices decrease within a month. Additionally, new full-priced merchandise may remain unsold until new items arrive, further impacting profitability.

To address the issue, one option for Talbots is to introduce new and trendy products that will have a high demand and sell quickly, thereby avoiding the need for putting any remaining merchandise on sale. Additionally, Talbots can offer exclusive promotions for their full-priced items to encourage customers to purchase at regular prices. Although Talbots has demonstrated growth in the past decade, there has been a recent decline in sales, possibly due to factors like the current economic downturn or other reasons. To tackle this situation, Talbots can aim to reduce expenses and optimize

profits—a strategy commonly adopted by many companies facing challenging market conditions.

Talbots possesses the necessary customer base, brand recognition, and product offering to not only survive but also thrive. With ongoing expansion and effective leadership, Talbots is likely to endure any economic downturn and maintain its strength in the future.

Work Cited Plunkett, Jack W. Plunkett's Retail Industry Almanac 2008: Retail Industry Market Research, Statistics, Trends ; Leading Companies. Houston, Texas: Plunkett Research Ltd., 2007.

Sullivan, Judy. Talbots - "the New Approach" Ms. Talbots Store – 135, King of Prussia, PA. 2008.

Talbots Business Binder. Ms. Talbots Store - 135, King of Prussia, PA. 2008. Valeo, Tom. "Growing Old, Baby-Boomer Style."

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