The Heath and Heather Department Stores (Case Analysis)
Key Background Information
Heath and Heather Department Stores is one of the major department stores in Dublin having been incorporated in 1905. Dublin city is said to be one of the top ten richest in the world, which has attracted a number of companies from various industries to invest in/or evoke an active/thriving commerce environment in Dublin. Evidence of a display of middle through to wealthy income classes can be witnessed/ seen in the city of Dublin. Nevertheless, the Global recession has resulted in an inevitable decline in spending and as such, people are searching for value for their money. Insomuch, consumers prefer to shop in a central location that caters to their every shopping need. Heath and Heather was formerly known for its high end and exquisite sense of style. Its high quality brands at its six store complex has propelled the city of Dublin to worldwide recognition for its shopping and earned a very favorable position among the wealthy of Dublin. This thus provided the opportunity for expansion, and added various departments to extend their portfolio to compliment the shopping desires of everyone in Dublin. Interestingly, in spite of all their growth and offers Heath and Heather’s sales have been at a standstill for the past 10 years. Moreover sales have been at a steady decline which led to a net loss in January of 2012, it’s first since opening in 1905.
Heath and Heather’s major competitor is another department store called Irish Cream Inc., with four stores facilitating more floor space than Heath and Heather. Proprietor, Irish billionaire Geoff Rohan has seemingly caught the attention of the wealthy clientele. . Irish Cream Inc. has targeted the upper middle class households by offering product lines which caters to them. Their main focus is catering for upper middle and the wealthy income households of Dublin, but they do offer an annual sale where some middle and lower income householders can purchase high quality, high end styles from the previous year at extensively reduced prices.
Heath and Heather Department stores have faced multiple disadvantages due to global recession coupled with their major competitor Irish Cream Inc. The lower priced lines have only generated sales when they are placed on sales, and the music department also had a serious sales deficit with CD sales decreasing each year. To overcome these deficiencies, Heath and Heather is considering setting up a website to promote sales. Though this may be an exciting marketing fixture for Heath and Heather, only the small younger segment of the market in Dublin is internet savvy. The marketing officer therefore, has six months to affect some turnaround in sales to prevent further decline in business or he will be replaced.
Focus on very high quality, high end brands and timeless sophistication. 2.
Excellent customer service.
Dublin’s wealthy housewives as primary clientele.
The Irish prefer locally owned stores
Flag ship store is located in a reputable area
One-stop shop so everything is available at the department store
Expansion into many departments
Extensive expansions of the stores
Stagnant sales for the past 10 years
Decline in sales in January 2012
Trying to appeal to too many people- lack of focus
Located in the 4th richest city in the world and 10th richest by personal income 2.
Strong economic city
The return of the middle and upper income Irish from Britain can be catered to directly to attract this market. 4.
Immigrants from Europe can be more aggressively targeted. This can be justified due to the fact the Asian quarter is growing and this market that is there is mostly attracted to this 5.
Website would appeal to the youth
Dublin area population is growing
The global economic crisis which is causing people...
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