Hart Schaffner and Marx: the Market for Separately Ticketed Suits

HQCS: Manage Quality Customer Service Student Guide BSBCUS501A: Manage Quality Customer Service Elements of competence Plan to meet internal and external customer requirements Ensure delivery of quality products and/or services Monitor, adjust and review customer service 1 BSB51107 Diploma of Management _____________________________________________________________________________________________ Module description This module covers the skills and knowledge required to advise on and carry out customer service strategies and to evaluate those strategies on the basis of feedback and design for service improvement.

Levi’s decided to place their product in department stores as they had good relations with the retailers due to their volume sales of jeans. They did not have any real relationship with the specialty stores where the independent male shopped. Rather than placing their new products which would be considered as high-end in these specialty stores and where they would be among the lower price range, they chose to place their products in the department stores where their products showed a deviation from the regular Levi formula and were considered very pricy as compared to other high-end department store brands such as Haggar’s. This price raised some concerns among the retailers as they were unsure if Levi’s formal wear would move out of the stores at a required pace. Also, due to price-quality inference, if Levi’s was placed in a specialty store, the Q2 customer might prefer to buy a more expensive product.  Levi tried to sell these formal clothes in the same stores as their casual clothes for the same segment of customers. Customers saw these formal clothes at the same place priced higher than the casuals, and therefore found them to be expensive.

I believe that H&M’s future growth depends a lot on how they will expand online and their sustainability. H&M launched their online store in the US in 2013, but has had some negative response. They offer free shipping, but the costs for the returns will be deducted from the credit of the returned merchandise. Costumers believe that returns should be free or that they should have the possibility to return in stores, which at the moment is not possible. For H&M this is an issue because of the high volume and costs of returns. To stay true to their sustainable image,

Company Q has had a large demand from their customers to provide healthy and organic foods over the last few years. They recently started offering a small variety of health and organic food items, which is a step in the right direction toward being socially responsible. They need to be more attentive to the needs and wants of their customers as it shouldn’t have taken years to bring in these demanded products. When there is a demand for products and the company doesn’t respond to that demand, it’s perceived by the consumers that the company simply doesn’t care about their needs and wants. Bringing in a selection of these products was a good start in satisfying their customers. However, with such a demand for these items, having a small and limited selection is just not enough. Expanding the line of health and organic food items will accomplish two things. First and foremost it will appease the current customers and bring in a new clientele that is health conscious, thus helping to create a healthier community and at the same time increasing sales. The higher margin on the health and organic items coupled with the increase in sales will really boost the overall profit margin of the company. Company Q does need to be sure that they don’t over price these products so as to not push away business due to overpricing.

That being said, suppliers can have some power in regards to choosing the number of stores where their product can be purchased at. This allows the suppliers to regulate their sales and stay away from the “red tape”. The bargaining power of customers impacts HBC as customers are able to influence pricing based on their buying habits. Of course, customers do not choose the retail prices offered to them, however, if inexpensive clothing were to lead the industry, retail stores would adapt to this consumer demand and offer an abundance of inexpensive clothing due to consumer preferences. These forces lead to rivalry among competitors due to the many options offered to consumers to grant their desires. These forces combine to cause strategic implications for HBC. HBC must differentiate itself from its competitors who, similar to HBC, have large annual revenue, strong and profitable supplier agreements and large amounts of capital. As well, due to competitors large sale volumes, competitive pricing is an implication which faces

This correspondences procedure focused on an up-market cachet with quality stock at moderate costs. They bring new patterns to racks quicker than other markdown retailers and incorporated "fast fashion" to bring about more regular customer visits. Publicizing efforts, for example, "Expect More, Pay Less" work to impart their intended interest group of more youthful, more wealthy, and instructed advertise. They have engaged their business sectors "classification require, mark mindfulness, mark disposition, and brand buy aim" with its IMC systems. Walmart has passed on a brand as a rebate superstore, which purchasers see as modest and low quality. Target upholds a solid trust in its purchasers of value and top of the line items. Through their coordinated showcasing correspondences procedures the brand has turned out to be seen as top of the line reasonableness. This separation is the manner by which target has wedged itself a specialty in the markdown retail

* Procurement: As it is the second Europe’s cloth retailer company, for the production H&M uses a lot of material and workers so its mains recourses are material, labour and energy. That is why small changes in prices can affect the company’s profit a lot, and the fact that it does not own any manufactories causes some problems in controlling the production’s prices. However, not owning the factories can be an advantage in some cases. Indeed, if a problem appears, H&M can easily change its suppliers. Moreover, due to its huge size, H&M can easily manipulate with its suppliers to have the best quality at the lowest production’s price.

In contrast, the target customer for separates wears traditional suits far less often, and is far more price sensitive. The separates customer doesn’t mind shopping for awhile to find what they are looking for. They are also far less concerned with having status associated with their purchase. Such a customer might be looking for a cheaper suit to wear to a

The H&M guarantees value for their low pricing. This strategy of low prices has made the company very successful in emerging markets, according to Jepeson (2014). From the research conducted H&M seems to be practicing a cost based pricing model. The two major constituents of the brand pricing is the high fashion and the lower cost. The company collaborates with renowned designers in order to offer innovative product design but manages to keep prices low through the manufacturing

For example, Primark is offering to their customers the high quality, at value for money. It is supported by service promised by

Competitive pricing: because HN has a large share of the market they are “price leaders” and other businesses follow them

As mentioned above, because of The Optima’s high end service and product quality, while implementing premium pricing, company aims to reduce the prices slightly without effecting negatively its “high-end image” and company exerts different promotional offers to support the higher price policy and make the

And trade-offs can arise for three reasons: the aim to deliver consistent value to customer, inflexible different activities

Product differentiation: differentiate WT HVPS with the mid size market as not only a superior product, but also as a value added product with high level of service and product expertise.

Case in point, in the event that you decide to purchase one extravagant brand in vogue shirt instead of two less expensive T-shirts from an in-store brand, you must surrender owning a second shirt less chic in return for the more stylish brand shirt. People use distinctive criteria to settle on choices and albeit all reparation things and experience costs, the expense will not be the same, as the quality they assign to specific products or administrations vary.