Problem
"When the Sophisticated Junior opened its first store in Michigan, it was a time when a segment of the female market was under-served. Up until the early 1950s, there was little, if any, apparel that was tailored to fit the shorterwaisted figure. Most items were produced in misses sizes and often required alterations to fit many of the consumers. It was then that the Sophisticated Junior opened its doors with a specialty that catered to this narrower, shorter female. The specialization that it subscribed to made it different from the rest of the merchants in its general trading area. It wasn't long before the company began to realize sales and profits far beyond what it had imagined. With the first store a success, the business was on the road to becoming a chain operation, and eventually reached other cities within Michigan.
The merchandise assortment, first exclusively featuring dresses, ultimately included sportswear and a wealth of accessories. Throughout its years, the Sophisticated Junior entered into many different retail formats to respond to the needs of its customers and prospective clientele. First it was direct marketing with a catalog that quickly became a success; then, five years ago, the Internet was employed, with its Web site bringing newfound sales. The company, at that time, operated thirty-two stores, published five seasonal catalogs, and featured a Web site. To make certain that its success would continue, the company's management team focused on market research to ensure that they were aware of any changes in their customer base, and would address them when indicators warranted them to do so. Up to this time the research had directed them in terms of merchandising directional changes, new promo-tional approaches, store design, and so forth.
The most recent research indicated a major occurrence that would probably affect the company's future. While management team members were aware of the increase in the different ethnicities that now made up their consumer base in many of their stores, they were not aware of the increasing numbers that would affect them down the road. Specifically, the increase in African American, Hispanic, and Asian American populations was becoming significant. Attention now focused on whether or not it would be necessary to rethink their merchandising strategies and redirect their model stocks to reflect those ethnicities' wants and needs.
Would the one-size-fits-all philosophy continue to serve the company well, or would changes be necessary if it were to continue on the successful path it has enjoyed ever since it opened its doors? Would store designs have to be adjusted? Would visual merchandising require changes? Would advertising require new approaches? Would the Web site need redesigning to capture this growing segment of the market? These are just some of the questions that required answers. Management, with the help of a marketing research firm, began to tackle the problem. Many suggestions were made such as:
A. Adjust the merchandise mix to feature at least 50 percent of the products that had a specific appeal to ethnic groups.
B. Plan a store-by-store evaluation and adjust only those invento-ries that indicated an ethnic population was in the trading area.
C. Change all of the advertising to focus on different ethnic themes.
D. Utilize visual presentations that employed ethnic mannequins.
E. Ignore any changes until a time when sales severely faltered. At this point, management team members are still planning their next move."
Task
A. With which, if any, of the management suggestions are you in agreement? Defend your answers with sound reasoning.
B. Pretend that you were a member of the management team. What suggestions would you make in terms of possible changes at the sophisticated junior? Make certain that logical reason is the basis for your suggestions.