Hangers Cleaners of Kansas City, Mo., is faced with the challenge of a behemoth competitor in Procter & Gamble's Tide dry-cleaning service, which the consumer-goods giant started testing in the city in 2008. Hangers responded by emphasizing its quirky personality, community roots and personal touch in addition to adding some services. In a related blog post, several small-business owners respond to the Hangers case study and give more advice to help the small business survive.

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