ANN STARR FASHION SHOP

MOS- Group 9:
Anirban Mitra(PGP/20/66)
Himangshu Rathi(PGP/20/82)
Kaustav Roy Chaudhary(PGP/20/274)
Pratik Nandi(PGP/20/283)
Akhtar Shahi Qureshi(PGP/20/312)
Karan Kumar Mall (PGP/20/326)
 ANN STARR FASHION SHOP

Key features :

Single Store
Most complete assortment of womens fashion wear
Personalized Service ( Core competency )
High margin ( 50%)
No price differentiation ( no price war)
 HILLMANS

Key features :

Targeted expensive taste and budget constraint women

Cost leadership ( 20% lower)
Economy of scale ( Bulk order from well known manufactures)
Provide not at the beginning but very close to buying season
Size, Colours and Styles are limited
Not patronized by product specific buyers and pre-season shopping
lover
 FILENES BASEMENT
Key features :

Sell branded clothes off season or end of the season

Price move as product move
Prime Space (12 days)
Less Desirable Location
Third Area
Charitable organization

High Margin (Able to buy at half price)

Less option available for customers
Cost leadership
Able to sell poorly design and colour articles
 1st Alternative - Filenes
Basement along with current
Pros
operations Cons

Rate fencing will self segment the customers
Target customers will be retained, and
prevented from being lost to Hillmans
Filenes basement would offer garments at
half the price as compared to Hillmans (that
sold at 20% markup)
Dilution of Ann Starr brand due to shift of
focus away from the current positioning
Not offer direct competition to Hillmans
Unable to capture the target customers of
Hillmans
 2nd Alternative - Filenes
Basement without any current
Pros
operation Cons
We get the advantage of Cost leadership
Filenes basement would offer garments at
half the price as compared to Hillmans (that
sold at 20% markup)
Will manage to attract customers, who are
concerned about money
Complete erasure of Ann Starr brand due to
shift of focus away from the current
positioning
Not offer direct competition to Hillmans
Unable to capture all the target customers of
Hillmans
We loose our original customer base
3 rd
Alternative - Imitate the
competitors exactly
Pros Cons

Risk of price war with Hillman

Customers wont switch to Hillmans
Hillman enjoys economy of scale - 9 stores
Lower procurement cost
Ann Star cant win in price war with Hillman
Lowering Price is not consistent with current
positioning
Loss of reputation
Lowering price means Reduced Profit
Less service & Less selection
Loss of customers who need service &
selection
4 th
Alternative - Continue with
the same strategy
Pros
Higher per unit profit-50% markup currently
Clear positioning-fine designer cloth shop
Retain its loyal customer base who are very
particular about designer wear
Cons
High mark up will be exposed due to price
comparison with Hillmans
Loss of consumer base to a certain extent
(consumers who are less particular about
color, style, service)
 Recommendation
Service business characteristic of a fashion store:
High fixed cost structure and relative fixed capacity, perishable inventory
Variable and uncertain demand
Varying customer price sensitivity

Hence Revenue management is most effective

Varying price in response to the price sensitivity and need of different market segment

What to do : (Alternative No.1 )

Reserving capacity for high-yield customer
Book relevant amount of capacity at each level
Further down the line : Virtual store ( e-retailing)
THANK YOU