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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.
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.
The
liquid
nitrogen
used
creates a lot of
vapor
which
attracts customers
that pass by.
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
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
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.
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
(P3)
Adidas
Claires
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
system.
Baskets, measuring tapes, pencils and papers available at every nook and
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.