Would introducing high-quality separates thwart the competitive threat
from low quality separates?
1.2 How serious is that threat?
1.3 Could HSM’s introduction “legitimize” quality separates and thus actually worsen
their competitive situation?
2/
2.1 What are the market trends that affect the potential for separates?
2.2 Is this trend towards separates real?
3/
3.1 What are the relevant ways to segment this market? Identify demographic segmentation approach and behavioral segmentation
approaches.
3.2 Is the traditional suit customer the same or different than the likely customer for high-quality separates?
3.3 Given the above analysis, what is your recommended approach for
segmenting the market?
4/ If HSM does introduce a high quality separates product, which segment(s)
should they target? Carefully consider the product-market fit – each
segment’s needs and preferences and the ability of a quality separates
product to meet those needs — before deciding on your target segment.
5/ On a perceptual map, plot the positioning of traditional suits, low quality separates and high-quality separates.
6/ What about product-company fit? Would, for example, high-quality
separates be a good fit for the Jaymar Ruby division? What are the pros
and cons of adding quality separates to the Jaymar Ruby product line?
7/
7.1 Is it too costly for HSM to introduce separates?
7.2 Would such an introduction result in incremental profits for HSM overall?
Justify your conclusion with relevant financial calculations, including
- a) break-even volume calculation
- b) cannibalization analysis
8/ Should Hart, Schaffner and Marx (HSM) introduce a line of quality
separates?
9/ Independently of your answer in question 8, if HSM introduces a line of high quality separates, what is the tactics for each of 4 Ps with the introduction? You should link your response to 3C analysis.
10/ Price – at which price it should sell the high-quality separates to the customers, including
– direct customers
– retailers
Support your analysis with calculations.
11/
11.1 What were the pros and cons of focusing solely on specialty stores versus
targeting department stores as well?
11.2 Would the Jaymar sales force need added incentives to get the
product off the ground, if yes – which incentives?
11.3 What test market results would warrant a “go” decision?
11.4 What other responses, if any, should the firm make to changing competitive strategies?
