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: Dressing Up - Case Study Example

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First, there has been much duplication of Kohl’s semi-low frills business model from competitors such as JC Penney, Wal-Mart and Old Navy. These competitors…
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Case study: Dressing Up
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Download file to see previous pages Even though competition is able to use their high capital resources to mimic the Kohl’s model and merchandise, Kohl’s continues to rely successfully on place marketing in order to gain higher revenues and, ultimately, brand loyalty with key target demographics.
To the advantage of Kohl’s, one external trend has made this stand-alone retailer more important to key revenue builders in their modest income target market. Consumers have been growing tired of long lines in retail stores, poor inventory management, poor selection, and many other issues. Because of this, the convenience and largely hassle-free shopping environment at Kohl’s provides removal of these barriers to a quality shopping experience. According to one respected business theorist, “A strong brand image is the only asset a company can develop that cannot be copied” (Nanden 266). Kohl’s has managed to gain a great deal of customer interest and loyalty in its positioning strategy toward price and convenience. It is a brand with a great deal of brand recall and recognition, something not easily duplicated by consumers. Dealing with competitive actions in the external environment simply involves focusing on brand-building as part of strategic policy in a way that serves as competitive advantage.
Another external trend that is of relevance to Kohl’s is measurement of customer satisfaction to ensure the brand is still viable and relevant to consumers. When a company must rely on its brand reputation in order to maintain higher market share and consumer interest, the model relies on consumer patronage to ensure longevity in the market. Consumers in the United States are often price sensitive, as one example, and are willing to defect to other brands that can provide more perceived value to the target markets. Kohl’s should be exploring the external environment to find out different psycho-social attributes in target markets in order ...Download file to see next pagesRead More
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