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Talbots - a Classic

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Case 1: Talbots – A Classic On January 26, 2000 the Harvard Business School published the case of Talbots – A Classic. This case discusses how Talbots tried to change their target market to a younger and more hipper clientele in 1997. In making this change, they discovered several problems that any company would possibly have to address when they determine that they want to relocate their company in the market. Several of the problems are connected to their customer’s experience as well as retaining them as a customer too. In making the market change, Talbots confused their core customers which caused them to choose their competitors. I believe that their strategy wasn’t executed well because they didn’t think of how they would retain their current clientele while marketing to the younger generation. “To make matters worse, because 98% of our assortment is our own Talbots brand, we owned all that merchandise, and it takes very heavy markdowns to flush it out of the system” (Harvard Business School, 1). Talbots established process checks in order to avoid any similar sever connections in the future with their clientele. Talbots is known as a chic standard and conventional woman’s apparel store. They service a niche market of women ranging from 35 – 55 years old. However, back in 1997 Talbots’ determined that they would relocate their company in the market. In doing the relocation, Talbots would create an additional casual line of

clothing targeting a younger generation of women. Unfortunately, “After a difficult 1997, when Talbots had changed its assortment and styling to attract a broader customer base and seen its net income per share plummet from $1.91 to $0.18, it refocused itself on its traditional strength – classic clothing targeted at women 35-55. (Harvard Business School, 1)” The execution of Talbots’ strategy to create a broader

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