Background of Retail shop

Introduction of Retail Shop Family Mart is one kind of convenience store which has the chain of retail stores in few countries. [Retail Marketing] Family Mart has a goal to making life easier for customers where customers can get everything that they need nearby of their homes. Besides that, the price of items is also controlled to be low and affordable. As a combination of nearer distance and low price, customers get to buy their groceries at cheaper price near their homes instead of going to supermarket or to suppliers warehouse. Family Mart believes that saving time for customers to do their shopping and providing them with convenience increases their opportunities to shop. (99 Speedmart, 2013). Name of the Retail Store We have chosen the name of the retail shop to be Family Mart because our retail shop is suitable for all family members to come in together to purchase and located near to customers home. Thus, customers can shop conveniently in a shorter time compared to large shopping malls. Besides, Family mart also easier and familiar to let customer to remember it and make deep impression for our customers. Location Family Mart is located near to housing areas or town of different district in states so that customers from different areas in the state are able to access to Family Mart near their homes.

Page | 1

Moreover, Family mart is located where there are ample of car parks so that large number of customers can park their car and purchase goods in the shop. Besides that, there should be loading bays available near the retail store so that suppliers are able to load and unload the groceries. In addition, the retail shop building should not be hidden but must be located at exterior of a building so that customers are easily able to see the location of the Family Mart and attract more customers come in shop. (About.com, 2012). Products Family mart is a store which mainly sells large variety groceries to customers. The groceries should be available in many assortments and displayed on the shelf so can be viewed and brought buy customers easily. The products in the retail store should be available in large variety to attract more customers. The products offered by the retail store are mostly groceries such as laundry powder, canned food, tissue rolls, shampoo, cosmetic, cold storages food, stationary, and etc. Besides, external of the store also provide 24-hours kiosk reload for mobile prepaid and common medication such as Paracentamol for customers to purchase. The products which are available should be from common famous brands compared to isolated brands so to increase the sales rate in the store. (Wikiinvest, 2012). Operation Family mart operation should be simple and systematic so that we are able to meet customers demands and reduce the cost of operation in the store. [Managing Retail Marketing] The salary of the employees are paid by working hours of the staffs because to reduce the cost of employment. There should be less than 5 employees Page | 2

working in the store including the owner because the retail store is small. (DMS Retail,2013). Besides that, there is no transportation cost because Family Mart is dependent on the suppliers to deliver their good to the store. [Quality and Service Excellence] In addition, the store only operates 12 hours a day which is from 9am to 9pm to reduce the cost of operation. The operations in the retail stores should be as follows: Sales assistant which arrange the stocks and display items for sales on the shelves. Customers shop and purchase items in the stores. Cashier scan items and receive money from the customers for goods that they have purchased. Customers pay for items that they have purchased to the cashier. Suppliers unload goods to the sales assistant so that they are able to manage the stocks. The owner manages all operations in the store. Capital Family Mart can be also called as mini market because there are many varieties of groceries sold in the store in a well-organized environment and good stock position. [Innovative Retail Marketing & Shopping Center Marketing] As each customer is located nearby the store, customers dont have buy items in large stocks and are able to come back to the store when they need the items. (AnalyGIS.LLC,2004). The cost of development of Family Mart is including the capital, expenses and other additional expenses. The cost of developing a Family Mart retail store is estimated to be about RM 73,700. This capital is including purchasing assets such as building and Page | 3

groceries required to open a retail store. Expenses includes electricity, water and telephone bill which is required to run and operate the store. The cost of development of a Family Mart retail store is as below: Rental +Deposit = RM 3,000 Employees = RM 4,500 Renovation + Furnitures =RM 30,000 Groceries (Stocks) = RM 34,200 Brochure, Banner, Signboards= RM 1,500 Electricity, Water, Telephone =RM 500 Total: RM 73,700

Advantages of Family Mart

Family Mart has continuous developing chart so that 50% of its profit is used for development of its retail store. Family Mart has higher growth rate compared to other retails stores in the nation. Family Mart also located at a strategic position so that customers easily able to notice its location. In addition, customers are able to conveniently go to the store by walking or driving as it is located in a nearby the homes. (Retail Marketing Blog,2013). Advantages of Family Mart compared to other retail stores are as below: Low Price Since, Family Mart purchase large amount of items of from its suppliers, the products from its shops are sold at lowest price. Low Cost of Operation Page | 4

 Located near to housing areas. Small and Convenient Strategic Location The retail store is located in shop lots besides main roads where it is easily seen by most bypasses. In addition, the location of shop lots should have many car parking lots so that it is easier for many customers to park their car at shopping lots and start shopping. Continuous Growth The retail store needs to grow continuously opening more branches in different locations in the country. This means the sales rate increases which contribute to increase in profit of the retail store. Increased numbers of store also increase accessibility of customers to the stores.

Page | 5

Design plan of Family Mart

Floor Plan

Page | 6

Page | 7

 External view

Page | 8

 Internal view

Long row [Sources from Tesco]

[Sources from Tesco]Row by row

Maximizing space between rows [Sources from Tesco] Page | 9

Windows displays [Sources from Tesco]

[Sources from Tesco]Power aisles

Open Display [Sources from Tesco] Page | 10

[Sources from Tesco] Name or concessions display

TV screens advertorial display [Google images]

[Google images]Theme display Page | 11

CCTV [Google images]

[take from tesco] Counter

Family Mart Office

Page | 12

 Family Mart 3D External

Family Mart 3D Internal

Page | 13

Explanation of design plan Store Design

Store design is one of the most evident elements in retail positioning strategy. The selling environment needs to make a positive statement about what the products that provided to make the customer a more interesting individual. [Lecturers notes] There are a few design brief of store design about our retail shop which name as Family Mart. The store design of Family Mart is able to guide the customer around the store and entice increase purchase.
Branding and positioning

Family mart has a goal for making life easier for customers where customers can get everything that they need nearby of their homes. Besides that, the price of items is also controlled to be low and affordable. Family mart is a store which mainly sells large variety groceries to customers. Thus, our shop got the ability to attract more customers. Size Family Mart should accommodate 2 shop lots which are usually between 2,000 to 4,500 square feet. This is because there is space needed to accommodate large amount of groceries and the stocks in the store. Groceries should be displayed in one shop lot so that customers are able to see and buy them and another shop lot is used to accommodate its stocks. In addition, the size of the retail store should not be too big in order to manage the rental and operations cost.

Page | 14

 Security and safety Since customers and employees are a retailers biggest asset, maintaining a safe and secure environment for people to work and shop is priority number one. In a matter of seconds, a threatening situations can occur and a retailer must respond swiftly and effectively to provide maximum protection to employees and customers. [Employee & customer safety] In Family Mart we do emphasize greatly to make sure the customers feel secure and protected while enjoying in our shop. For example, Family Mart arranges the product nicely and according to types. We design the rack as low as possible, so that easier for customers to take and avoid things falling from top. Moreover, nowadays, public safety is an issue that people are concerning, they feel very unsafe while going out. In Family Mart we care and concern our customers' security, because there is nothing more precious than the lives of our customers. For example, there are CCTV and alarm system installed in our shop to prevent thieves and we do have security guard around the retail shop in order to make sure our customer is safe to shop our retail store. Customer flow and space utilization We arrange our working area and products neatly and the space of our shop is fully utilized. This will allow customer to move comfortably. Besides, we also design spacious space, so that customers can feel free to move around. For example, the aisle is big enough for two trolleys to move, so that customers no need afraid their trolley will block other people to move.

Page | 15

 Store Layout We decided to use a Grid pattern layout for Family Mart. Grid pattern layout is the Long rows of parallel fixtures, straight aisles, little or no movement between aisles. [Lecturers notes] As we can see from the floor plan, our products is placed row by row which different category of products will placed different row. The groceries in our shop are available in many assortments and displayed on the shelf so can be viewed and brought buy customers easily. For example, all stationary is placed on the same row. This is because it makes customers more easy and clear to find what their needed. The grid is a true "shopping" layout, best used in retail environments in which the majority of customers wish to shop the entire store. [Store design] It creates little wasted space. It is common in supermarkets & non-foods where aim is to convey cheapness image. Family Mart is the convenience shop which sell FMCG to customer, so the Grid pattern layout is most suitable store layout for Family Mart to reinforce the images of our shop to customers which our products is low price. Besides, we are maximizing the space between rows to make customers feel more comfortable while they shopping in our store. While on the right hand side from the entrance is the cashier counter, cosmetics, reload kiosk, and ATM. Besides, office and inventory are placed at the back of the shop. It will make our staff move easily and can handle the work effectively. All in all, the advantages of Grid pattern layout includes, maximum exposure to merchandise, little wasted space, and economical to install & maintain. [What are the advantages and disadvantages of grid layout]

Page | 16

 Atmosphere Visual (sight) The blue color reduces stress, creating a sense of calmness, relaxation and order - we certainly feel a sense of calm if we lie on our backs and look into a bright blue cloudless sky. It slows the metabolism. [Color psychology-Psychological effects of colors] Thus, we have chosen blue as the external view of our shop. Moreover, we put some flower plants outside our shop to attract customers and create a more relaxed environment. As we know, blue is the color of the sky and sea. It is often associated with depth and stability and therefore it symbolizes peace, trust, loyalty, healing, faith, intelligence, truth, and heaven. Besides, blue color also implies that our shop is efficiency. [Psychological properties of colours] Instead of the external is in blue color, our workers also required to wear the blue clothes as blue show that our workers are reliable and intelligence. We use white color for our retail shops wall, ceiling, and floor. The white color make the whole internal environment become brighter and show the cleanliness. [Color psychology-Psychological effects of colors] So, our customers can easier to seek and differentiate the variety of products in Family Mart. White color also represents comfort, safety, and sense of space. [Color psychology-Psychological effects of colors] Thus, our customers can feel more comfortable while shopping in our store. This is because white color is able to maximum the size of our shop from the customers view. As contrasting to black, white usually has a positive connotation. [Color psychology-Psychological effects of colors] It also considered being the color of perfection.

Page | 17

In fact, a good lighting can accentuate products. The objective of good lighting in our retail shop is to highlight the products within the overall display. We will balance the lighting throughout in Family Mart so that the brightness of the shop is clear enough. Tactile (Touch) The touch sense is the tactile sense by which we have physical contact with the surrounding world and can investigate three-dimensional objects.[A sensorial touch strategy of store sense]. The temperature of the family mart area ranges from 22 to 25 degrees Celsius as an action of supporting the Go-Green Campaign. Nevertheless, it can be change if the customers make request to adjust the temperature. Temperature wills below 20 degrees Celsius if Family mart provide air condition. Consumers will satisfy with the temperature in the shop that comforts them while purchase our products. Olfactory (Smell) The smell sense is closely related to our emotional life, and scents can strongly affect our emotions. A human being can remember more than 10000 different scents, and the perception of a scent experienced earlier is enough for us to associate it with earlier memories.[A sensorial smell strategy of store sense]. We will just let the environment of Family mart will always remain fresh. Air-purifier will be installed to make sure the whole environment will become fresh. Besides, the air-purifier using the CLARUS filtration system in addition to the HEPA filter eliminates 99.99% of all airborne contaminants that are drawn into the system, effectively removing pollen, bacteria, dust mites, viruses, smoke, and impurities as small as 0.009 microns, and thus giving the cleaner air in the Family mart area.

Page | 18

 Aural (Sound) Sound has always been of great importance in society. Most people attach a meaning to sound, and music as a source of inspiration is often used as a way to shape a persons identity.[A sensory sound strategy of store sense]. We are realizing that sound can be a strategy to strengthen the identity and image of our shop. For example, our shop will provide happy music fosters positive buying emotions and can lead to customers spending more time in our shop. Consumers tend to underestimate time when their auditory senses are positively engaged. However, if our shop becomes crowded at that time, we will consists change to popular music with a fast tempo to get people moving quickly through our shop to reduce crowding and queuing.

Display Technique Open displays We use this display technique to create involvement and opportunity for customers to feel and touch our products. [Lecturers notes] Therefore, they can ensure what actually their requirements. For example, customers can take the product from the rack to see the information on the packaging such as ingredients and functions of the product as well as they can do some comparison with other products in our Family Mart. This technique makes our customers more easy and convenience while choosing a product. (Refer to the picture on page 9) Name or concessions displays Name or concessions display usually use for those products collections which linked to a brand in our retail shop. [Lecturers notes] Giving some products such as

Page | 19

cosmetic, food and etc ( Nivea, Follow me, Johnson $Johnson , Nestle, Mamee) It is a degree of exclusivity to allow them have the right to retain certain product range. (Refer to the picture on page 10) Power aisles This display technique is displaying large amount of few items in order to draw attention of customers while they come to Family Mart. [Lecturers notes] For example, Family Mart displays a large amount of rice at a wide corridor running through the store. It also marked with signs or floor paint. (Refer to the picture on page 9) Window displays Window displays can function as major attraction by putting the best selling product in the most catch eye position such at the front of main entrance, so that customer can see them when go in the shop. [10 tips for designing more effective retail store window displays] For example, Family Mart will arrange the product which is new launch or on promotion place them at the most catch eye position in order to let consumers can immediately see them. Besides, it also acts as announce sales and prices by using banner or brochure place them at the front of the shop, so that when people pass by can see what promotion is doing and what is going on. [Lecturers notes] It can create public awareness; attract more customer and sales volume at Family Mart. (Refer picture on page 9) TV screens advertorial display Using this method to promote new launch product, so that consumer can getting more detail information about the product and promotion. For example, Nestle launch a

Page | 20

new product, so Family Mart displays information on TV screen to play video to let customers understand about the product. (Refer picture on page10) Theme Display Theme display uses to create the atmosphere full of feeling by decorating Family Mart according to the season such as Chinese new year, Hari Raya and Christmas. Besides, we also sell the product according to the season. For instance, Family mart selling the hamper , mandarin orange and soft drink during Chinese new year. (Refer picture on page10)

Page | 21

Recommendations
We always thinking of open the other retail shop to gain more profits as we manage well in the very first shop. While Family Mart tends to extend their business in order to growth their businesses and reach all its customers. However, Family Mart may get success as they using low price strategy to gain competitive advantages. In addition, Family Mart should open the other retail shops since the population keeps growing. Because of the population growth, quantity demand definitely increases and lead to shortage of products in the market. Hence, this is the opportunity for Family Mart to open the other retail shops as the market needs more suppliers. For instance, Nilai tend to be like jungle in the past ten years, but Nilai had done a lot of development today since the population keeps growing. At the same time, Nilai attract investors to do investments. Therefore, Family Mart may consider to open retail shops in Nilai to grow their businesses. Furthermore, Family Mart is highly recommended to make more advertisement as Family Mart wants to make expansion of the distribution. For this purpose, most of the people is still strange with Family Mart as they never heard before. However, Family Mart may send their catalog through newspaper to the places where they wish to open stores at there in order to get attention from its customers. Moreover, Family Mart also recommended to adopt internet retailing in order to improve their services. [Summary and recommendation of Wal-Mart] For this purpose, customers may understand more about Family Mart as the website provide information

Page | 22

about what products that Family Mart offer and how much the products cost. Meanwhile, Family Mart may also get the attention from people who wish to get it franchise. Other than that, Family Mart should ensure most of the items sold in every store in order to avoid stock unavailability. However, Family Mart should manage their store properly to avoid many of the goods left and unavailability. This may lead to Family Mart make loses for their business. While, it may helps Family Mart to reduce the risk and cost if they manage well in their stock.

Page | 23

References List:
(a) Lecturers notes -Chapter 4: The Selling Environment (b) Internet

1. 10 tips for designing more effective retail store window displays [Accessed 7 March 2013] [online] http://experts.allbusiness.com/10-tips-for-designing-more-effective-retail-storewindow-displays/883/#.UTrECRwdMxE 2. Color psychology-Psychological effects of colors [Accessed 8 March 2013] [online] http://www.arttherapyblog.com/online/color-psychology-psychologica-effects-ofcolors/#.UTr0rhwdMxE 3. Employee & Customer safety [Accessed 4 March 2013] [online] http://www.tycoretailsolutions.com/Pages/Challenges.aspx?ItemId=11 4. Innovative Retail Marketing & Shopping Center [Accessed 3 March 2013] [online] http://www.retailmarketingblog.com/ 5. Marketing and Sales Promotion [Accessed 6 March 2013] [online] http://retail.about.com/od/marketingsalespromotion/Marketing_Sales_Promotion.h tm

Page | 24

6. Managing Retail Marketing [Accessed 5 March 2013] [online] http://www.analygis.com/pdfs_apps/src_suite.pdf 7. Psychological properties of colours [Accessed 8 March 2013] [online] http://www.colour-affects.co.uk/psychological-properties-of-colours 8. Quality and Service Excellence [Accessed 4 March 2013] [online] http://www.fmm.org.my/events_details.aspx?eventID=c6d45531-537e-4c61-8f1c4d63b5d9dfd3 9. Retail Marketing [Accessed 5 March 2013] [online] http://www.dmsretail.com/retailmarketing.htm 10. Store Sense [Accessed 1 March 2013] [online] http://www.deakin.edu.au/buslaw/gsb/retail/docs/store-sense.pdf 11. Sensory of Marketing [Accessed 1 March 2013] [online] http://www.palgrave.com/PDFs/9780230576575.pdf 12. Summary and recommendations of Wal-Mart [Accessed 3 March 2013] [online] http://www.supremeessays.com/samples/Business/Summary-andRecommendations-of-Wal-Mart.html

Page | 25

13. Store design [Accessed 7 March 2013] [online] http://www.slideshare.net/gadekar1986/store-design-12816038 14. What are the advantages and disadvantages of grid layout [Accessed 8 March 2013] [online] https://getsatisfaction.com/smutel/topics/what_are_the_advantages_and_disadvan tages_of_grid_layout

Page | 26