Presentation on theme: "Establishing and Maintaining A Retail Image"— Presentation transcript:
1Establishing and Maintaining A Retail Image Chapter 18Establishing and Maintaining ARetail ImageRETAILMANAGEMENT:A STRATEGICAPPROACH
2Why is it sometimes difficult for a retailer to convey its image to consumers? Image is created by many factors and relies on consumers’ perceptions. In addition, uncontrollable elements can inflate or deflate a store’s image.
4In 3 Seconds… A shopper should be able to determine a store’s Name Line of tradeClaim to famePrice positionPersonality
5Figure 18.4 The Elements of Atmosphere Atmosphere - The psychological feeling a customer gets when visiting a retailer
6Visual Merchandising and Gap The proactive, integrated approach to atmospherics taken by a retailer to create a certain “look,” properly display products, stimulate shopping, and enhance the physical environment.
7Which aspects are uncontrollable by the retailer? Exterior PlanningStorefrontMarqueeLightingStore entrancesDisplay windowsExterior building heightSurrounding stores and areaParking facilitiesTraffic congestionLoiteringWhich aspects are uncontrollable by the retailer?
8Figure 18.6 How a Store Entrance Can Generate Shopper Interest
10Miss Sixty Dressing Rooms Italian denim in up-to-the-minute washes and styles“retro-futuristic store”Stores worldwide [US=NY, San Fran, Miami, OC, and LA; Can=Montreal]Dressing rooms in what looks like big-top circus tentsVintage furniture and wallpaper give off a feeling of excess, Tinseltown style.It's a “very glam setting” Atmosphere: Hip Source: LA.com
11Figure 18.7 Eye-Catching Displays from Toys “R” Us
13Part 7 - Case 1Discuss the implications of Underhill’s statement that “converting nonbuyers to buyers is largely dependent on store design and display.”Should an upscale retailer interpret Underhill’s research differently than a low-end retailer? Explain your answer.Paco Underhill’s main thesis is that since so many consumer purchases are unplanned, retailers should attempt to design the store so as to facilitate purchases, get consumers to spend more time in the store, and to facilitate the purchase of complementary items.Mr. Underhill feels that a store seeking its inventory may not take into account products that appeal to different age groups, females, and minorities.Should an upscale retailer interpret Underhill’s research differently than a low-end retailer? Explain your answer.Upscale retailers still need to be sensitive of the needs of different age groups, the importance of the female market, what waiting times consumers view as acceptable, and the value of entertainment. An upscale high-fidelity components retailer may seek to increase a shopper’s time in the store through an espresso bar, critiques of a classical pianist’s latest album, the sale of top-of-the-line speakers and components, and sound rooms where shoppers can listen to different components.A low-end high-fidelity retailer may seek to increase a consumer’s time in the store through having a salesperson suggest complementary merchandise, describing the different features of DVD players, and having all DVD players displayed.
14Allocation of Floor Space Selling spaceFunctional product groupingsPurchase motivation product groupingsMarket segment product groupingsStorability product groupingsMerchandise spacePersonnel spaceCustomer spaceSelling space is the area in a store designated for displaying merchandise, interaction between sales personnel and customers, demonstrations, and so on. Merchandise space is the area in a store designated for nondisplayed items to be kept in stock. Personnel space is that area set aside for employees to change clothes, take coffee breaks, and so on. Customer space includes a lounge, benches, dressing facilities, rest rooms, and so on.
15Figure 18.8 How a Supermarket Uses a Straight (Gridiron) Traffic Pattern
16Straight Traffic Pattern AdvantagesAn efficient atmosphere is createdMore floor space is devoted to product displaysPeople can shop quicklyInventory control and security are simplifiedSelf-service is easy, thereby reducing labor costsDisadvantagesImpersonal atmosphereMore limited browsing by customersRushed shopping behavior
17Figure 18.9 How a Department Store Uses a Curving (Free-Flowing) Traffic Pattern Food retailers and discount stores should not use a curving (free-flowing) layout. The curving arrangement could confuse customers, waste floor space, and involve high labor intensity. Rather, straight traffic flow should be utilized. Customers will be able to shop quicker, inventory control is simpler, and labor costs are lower due to self-service.
18Figure 18.10 Piggly Wiggly’s Open Traffic Design
19Curving Traffic Pattern AdvantagesA friendly atmosphereShoppers do not feel rushedPeople are encouraged to walk through in any directionImpulse or unplanned purchases are enhancedDisadvantagesPossible customer confusionWasted floor spaceDifficulties in inventory controlHigher labor intensityPotential loiteringDisplays may cost more
20Approaches for Determining Space Needs Model Stock ApproachDetermines floor space necessary to carry and display a proper merchandise assortmentSales-Productivity RatioAssigns floor space on the basis of sales or profit per foot
21Figure 18.12 Making the Shopping Experience More Pleasant