Ann Starr Fashion Shop

Presented by:
 Philadelphia, 1947

The Ann Starr Fashion Shop

Mrs. Ann Starr

 The 60’s

The 50’s

The 40’s
Ann Starr’s Clientele
 Two decades later…

Ms. Laura Taylor Laura’s Designs

 The Hillman Chain

There were many

women with expensive
tastes and limited
funds, and who always
wanted the newest
"look“, but only if it
had been copied in a
lower price range.
 The Problem
• Hillman bought property
exactly opposite to
Laura’s store.
• Priced the items 20%
lower than the same
brands in department
and specialty stores.
• Competitive price
strategies were not
Laura’s strong suit.
 Laura’s Options
• Cut down her prices (and maybe the quality
of her services and products as well)
• Aggressive, intensive advertising
• Ignore Hillman’s strategies
• Sell off her business
 Filene's Basement, Boston

• Entire stock made up of

merchandise bought in
lots from the finest
manufacturers and
retailers in the world.
• Everything bought at the
lowest prices, so
selection was less.
 The affluent and not-so-affluent rubbed shoulders while
looking over the vast assortments brought together by the
management of Filene’s Basement.
 The Questions
• Should Laura adapt the ‘Filene's Basement
approach’?
• Should she forget the merchandise plan that had
been the basis for her success for so many years?
• Where would those customers who wanted
selection and service go?
• Would she lose or gain in trying to compete
directly with Hillman's?
The 7 P’s
The 7 P’s
STP & Competitors
Analysis
 Segmentation
• Desired Benefit:
Latest Fashion Outfits for fashion conscious
customers
• Buying Frequency:
One time buyer
Once a month buyer
• Awareness:
Familiar
Unfamiliar
 Targeting
• Targeting people of:
Only females
Higher income group
Urban People
Fashion Conscious shoppers
Upper middle class and Elite class people
Educated /Uneducated
 Positioning
• Product differentiation:
In Trend products (Latest fashion)
Creative Display of Products
Most complete assortment of women's
fashion wear
Surety of sizes, colours and styles
Friendly, courteous, knowledgeable and
Trained staff
Competitor Analysis
 SWOT Analysis
Strengths: Weakness:
•Creative displays •Huge markup
•Courteous & knowledgeable staff •Limited offerings
•Customer Loyalty •No advertising

Opportunities: Threats:
•Feline’s Basement Approach •Hillman’s Store (or any other new
entrants)
•Mass Advertisement
•Possibility of Client Switch-over to
•Purchase from retailers the competition
 Ann Starr
• Reputed fashion store
• Recently faced with competition from
Hillman’s
• Laura considering strategies to tackle the
competition.
• SERVQUAL could help Laura in finding gaps in
anticipated and current service model
Should Laura Taylor engage
in price competition with
Hillman's ? Why ?
What are the advantages
and limitations of price
competition? Non price
competition ?
 Price Competition
Advantages
• Out perform competitors.
• Gain market share.
• High inventory turnover.
• Can be used to attract
customers from
competitors.
Limitations
• More time is needed to
conduct and update market
research.
• Competitors can easily
mimic whatever price you
select.
• Company may suffer losses.
• Does not help building loyal
customer base.
 Non price competition
Advantages Limitations
• Premium price can be • Company expenses
charged. increases on advertising,
• Profit margin is high. selling staff, sales
• Target market is clear. promotions, coupons,
special orders or free gifts
Should Laura Taylor engage
in price competition with
Hillman's ? Why ?
 No !!!
• Hillman had advantages in many areas over Ann Starr.
• Hillman’s product procurement concept.
• Nine outlets as compared to one shop of Ann Starr.
• Potential customer available for high price taste and
service.
• Expense of advertising can nullified by increase in sales.
• Exclusive women’s shop with 50% markup.
• Her displays were the most creative in town. The Ann
Starr staff was well-known for its courteous,
knowledgeable treatment of customers.
 Filene's Basement
• Stock made up of merchandise bought in lots from the finest
manufacturers and retailers in the world, both in terms of quality
and assortment, it was able to buy everything at lower prices
• The Basement store occasionally secured merchandise from
Filene's "upstairs" store and branches
• The differences between Hillman's and Filene's Basement were
primarily differences in resources, timing, and selling strategies
• Filene's Basement was even Iess selective and, therefore, got
better deals
• All other odd sizes and colors in the lines were purchased by
Filene’s basement
 Filene's Basement
• Famous fashion stores like Neiman-Marcus in Texas and Bergdorf
Goodman in New York were regular suppliers
• Customers were able to buy $300 designer dresses and $350 designer
suits for half price
• When merchandise was first placed on the selling floor, it was given
prime space
• Merchandise that was left after twelve days was moved to a less
important table location on the floor while the new arrivals took over the
prime spot
• From this second location the left-overs were again moved to a third area
• With each move, prices were reduced until finally the items that
remained were given to charitable organizations
Is it feasible for Laura to adopt a
version of the Filene's
Basement concept ??
 YES !!!
• Competition is inevitable
• She can still be able to operate one-half of the store as an
exclusive dress shop and the other half as budget shop
• She could limit her sources and buy only from retailers in her
geographic region, eliminating manufacturers completely
• Advertising - increased income would support an increased
promotion budget
• With only one store Laura was sure to pay more for the same
group of merchandise and paying more meant either higher
prices or a lower markup
Service Blueprint
Thank You