It's tough to be the little player, especially when one of the major brands or players become your direct competitor because and that is exactly what happened to Hangers Cleaners. FOUNDED in 2004, Hangers Cleaners of Kansas City, Mo., was started as an environmentally safe dry cleaner. It took pride in its USP which was using colourless, odourless liquid carbon dioxide instead of the aggressive chemicals applied at traditional dry cleaners and using their own van delivery system to help return the clothes after dry cleaning. However in 2008, Procter & Gamble (PG) opened an eco-friendly dry cleaning store about 2kms from Hangers headquarters which offered drive through service,24hr lockers and an on site tailor.The entry of this giant brought upon a sense of uneasiness at Hangers Cleaners about the loss of their customers. The founder Joe Runyan was unwavered and thought that the best way to stay competitive in the dry cleaning market against a giant like PG, is to enhance their already strong points. Their strength being a loyal tight knit local customer base which emerged due to their efforts in community building. Runyan increased customer engagement and their brand perception by sending in quirky and witty messages along with their dry cleaning, such as giving away free t shirts that say “sniff me” or place hangers with slogans such as “in the closet and proud” or “you’re the 23rd person I’ve seen naked” with the returned garments. Mr. Runyan said. “We can’t out-price or out-spend our big competitor, but we can be genuine, funny and edgy.” He also improved the after sales service by immediately replacing all garments if they were damaged during the dry cleaning process. He also took the initiative to build partnerships with corporations, non profit organisations and community groups, he also decided to donate 10% of the proceeds back to local schools. His efforts in creating a strong bond between the community members paid off in 2009 when all the local dry cleaners had a decrease in revenue by 25% But Hangers Cleaners sales revenue grew 3% when compared to 2008 all thanks to its va n delivery and pick up system. The local customer market had shifted to PG’s Brick and mortar stores but only for a short period of time. Eventually they retuned back to Hangers because of their convenience and warm marketing strategies
This case study is a great example of the influence of communal groups upon businesses and it also showcases how brand loyalty and customer retention can often be more beneficial than just lower prices and costs.
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