Hallstead Jewelers Case Report

Situation Analysis (Appendix A)

Hallstead Jewelers, a family owned business, has been in the business for 83 years. It used to be considered one of the best and largest jewelry and gift stores in the United States until Gretchen Reeves and Michaela Hurd, the third generation, took over. The store has experienced a significant loss after an extensive and expensive expansion and relocation was applied. (Harvard Business School March 8, 2007)

For the nature of its products, Hallstead Jewelers’ customers were mostly more concerned about the quality and service compare to price. Since jewelry was considered a luxury good, and it was used to communicate the identity of its owners such as success, status, etc. The product was meant to bring customers the feeling of self-worthiness, self-actualization as well as full-filling their social roles. Hallstead Jewelers’ target customers were mostly high-end and wealthy people. Majority of them were loyal with the store, and they came from throughout the region to buy Hallstead Jewelers’ products because of their quality and service. (HBC March 8, 2007)

Hallstead Jewelers was also the only store in the city that paid sales commissions, which were insisted one of the reasons for the company’s success. Again, with its reputation, the store did not compete based on product’s price, but rather offer customer satisfaction and maintain strong relationship with its customers. By focusing on a particular market segment, the store offered variety of products to meet all the needs of its customers in a superior way. (HBC March 8, 2007)

Hallstead Jewelers’ original location on Lake Avenue and Second Avenue was one of several factors that made the store successful in its history. It was considered the most important retail location I the city during the early 1930’s. Throughout the years, the store was remodeled and redecorated to maintain its attractiveness as well as its relationship with loyal customers. The store stayed put until...