Sei sulla pagina 1di 9

Introduction

Visual merchandising: is the three dimensional display in order to increase the sales.

Point of sale: placed near the merchandise they refer to so that customers know its
price and detailed information.

Brand image: is developed over time through advertising campaigns with


a consistent theme, and is authenticated through the consumers' direct experience.

Retail strategy: A marketing plan that details how a business intends


to offer its products or services to consumers and influence their purchases. For
example, a typical retail strategy might illustrate how best to place and display
a company's products in retail outlets and how to attract optimal consumer interest at
those locations with such things as price discounts, placement, etc.

Task 1 (P1)

Describe:
Name
Type of Retail Outlet
Location

Retail Outlet A
Ice Cream Lab
Independent
retailer.
Dubai Mall

Retail Outlet B
Splash
Independent
retailer
In
different
locations all over
GCC

Retail Outlet C
Carrefour
Chain store
Shopping malls and
prime locations in
selected counties.

Types
of
Goods
(Impulse
Goods,
Convenience goods,
specialty
goods,
Seasonal Goods)
Visual merchandising
techniques Like POS,
Stock
Facing,
Promotions

Impulse
goods, Specialty,
specialty
goods convenience
and
seasonal goods,
and
goods.
seasonal goods

Impulse,
convenience,
specialty,
and
seasonal goods.

Since it has an
exclusive concept,
there is a unique
way
that
this
company works. It
is situated in a
prime
location
which
captures
customers
attention through
its uniqueness.

Splash holds sales


during
different
seasons
and
special occasions,
it.
Posters
of
celebrities
promoting
the
products in the
store on different
relevant
aisles.
Abundance
of
stock
for
convenience
to
customers; rarely
ever runs out of
goods.

The strength and


Weakness of the
Visual Merchandising
Technique used by
different retailers.

The
liquid
nitrogen
used
creates a lot of
vapor
which
attracts customers
that pass by.

Key success factors


behind the techniques
used
in
visual
merchandising

Since it is a new
concept of the
production of ice
cream, it is in a
niche market; it
does not have a
lot of competitors

The strength is that


all products are
available at all
times due to the
vast stock. It is
constricted to the
timings of different
malls so its not
available 24/7.
The
visual
merchandising
techniques used at
Splash
succeed
due to the fan
following of the
celebrities used for
advertising.
The

Massive warehouses
used to store stock
as customers can
find alternates fast if
products
arent
available.
MyClub
cards are there to
reward frequent and
loyal
customers.
These reduce the
total bill by a relevant
percentage;
attracting customers
to
shop
again.
Advertisements
using celebrities are
used.
The MyClub cards
attract
customers
and keeps them loyal
to their brand. The
weakness is that it is
not a unique method
and can be easily
adopted by different
chains.
The
visual
merchandising
technique used at
Carrefour
is
successful due to
instilling a sense of
loyalty to customers.
The items are put up

banners
are
attractive and there
are
excellent
promotions
targeting
the
middle class.

on
shelves
with
attractive
banners
and tutorials on how
to use complicated
electrical machinery.

(M1)
Carrefour

Sinage- Help customers locate specific products and departments, provide


specific information, and suggest items or special purchases.

Graphics- can add personality, beauty to the stores image.

Location: used to identify the location of different types of goods. Different aisles
are used to group together a type of product; chocolates and chips are in one
aisle while vegetables and fruits are in another. The directions of the aisles are
given by hanging signs from the ceilings to enhance visibility.

Promotional signage: Signage displaying special offers may be displayed in


windows to entice customers into the store.

Stalls are present for customers to try out new products.

Splash

Feature areas: there are allocated areas dedicated to different sexes and for

kids.
Free standing display: Mannequins are used to show customers how outfits
would look. There are signs on the floor that give information about new offers
and promotions. Usually new stock is advertised or on some occasions, old stock

that Splash has to sell before the start of the new season.
End caps: products located at the end of aisles next to the cash counter to
induce impulse buying. Psychologically, customers are more likely to pick up
products next to the cash counter.

Task 1 (P4)
Carrefour
Carrefour follows the loop layout where in product types are placed together. The
major aisle begins at the entrance, loops through the store and returns the customer to
back to the front.

(D1)
Splash uses a psychological pricing technique wherein a good would be sold for AED99
instead of AED100 to make it sound cheaper. This has been scientifically proven to be a
valid technique. Splash does not mislead customers and gives accurate information
about their products like where they were made and the quality of materials used. The
company does not have any hidden fees and all prices are inclusive of any taxes or
additional charges. The length and conditions of warranty are clearly stated and told by
the employees; they follow the Price Marking Order 1991. Carrefour follows the same
principles, however, there have been instances where the warranty of a product has
been invoked due to unsatisfactory reasons.
(D2)
The displays should be more informative as only a limited amount of information is
present for the customers. The prices should not be set to deceive customers in any
way by using psychological pricing. If a product is for AED100, it should be set at
AED100 and not AED99. This would improve the trust the customers have on Splash
and this would result in more frequent visits and purchases.
(M3)
Splash takes a great deal of importance in their safety standards as careful planning
goes into the displays of their banners and signs. The signs that hang from the ceiling
and tested for endurance and stability. The signs on the floor are of appropriate sizes
and do not bulge out as they are not attractive or safe for the customers. They are made

out of round edges and made sure that it is very unlikely that customers would bump
into them.

(M2)
Designing a store layout includes deciding the best methods of presenting goods to the
customer. The methods determined are designed to optimize sales volumes. The basic
elements in a design that guide customers through the store are the layout, signage,
and feature areas. A good store layout helps customers to find and purchase
merchandise. Several types of layouts commonly used by retailers are the grid, race
track, and free-form. The grid design is best for stores in which customers are expected
to explore the entire store, such as grocery stores and drugstores. Racetrack designs
are more common in large upscale stores like department stores. Free-form designs are
usually found in small specialty stores and within large stores' departments. Signage
and graphics help customers locate specific products and departments, provide product
information, and suggest items or special purchases. Space management involves two
decisions:
(1) The allocation of store space to merchandise categories and brands.
(2) The location of departments or merchandise categories in the store.
Retailers utilize various forms of atmosphericslighting, colors, music, and scentto
influence shopping behavior. The use of these atmospherics can create a calming
environment for task-oriented shoppers or an exciting environment for recreational
shoppers. The goal of any retail location is to draw customers into the store and then
persuade them to make a purchase. Good advertising and promotion work to bring
customers in, but what happens once customers get into a store largely depends on the
layout and design of the store.

(P5)
Location decision is strategic and long term and hence involves a large investment that
is irreversible in nature. Poor location results in increase distribution cost, poor

marketing response and dissatisfaction among employees, suppliers and customers.


The location decision is one of the most important decisions a retailer will make, given
its long-term effects on the business. Retailer wants to be located where there are many
shoppers but only if that shopper meets the definition of their target market. Small retail
stores may benefit from the traffic of nearby larger stores. For a small retail store in its
first year of operation, with limited funds for advertising and promoting, retail
compatibility can be the most important factor in the survival of the store. Other than
rent, all costs involved should be considered by the retailer while choosing a retail store
location.
Lawn care, building maintenance, utilities and security
Upkeep and repair of the heating/air units
Any repairs, painting or remodeling
Property taxes
Dues to the centres merchants association.

(P3)
Adidas

Powerful advertising techniques


Use of props in window displays
Reinforces brand name
Spotlights and free form layout

Claires

Window displays product and reflects an atmosphere of business in the store


(usually the first thing noticed by a customer).
Clear transition zone with baskets/ trolleys on the way to encourage customers to

use them.
The store has a free form layout.
Claires encourage customers to use their hand basket so that they make a
purchase and deter thieves and also some customers will only purchase the
products they can hold if there are baskets.

Ikea

Ikea is known for their race track layout.


Convenience in picking the product and billing because of well planned delivery

system.
Baskets, measuring tapes, pencils and papers available at every nook and

corner of the store.


Secure game room for children with an age limit so that parents can take their

time to shop.
Reputation of the company is good enough to persuade the customer to buy

products.
Issues yearly booklets so that customers can plan ahead before visiting the
store.

Potrebbero piacerti anche