Transcript Chapter 1
Chapter 18 Establishing and Maintaining A Retail Image RETAIL MANAGEMENT: A STRATEGIC APPROACH, 9th Edition BERMAN EVANS Chapter Objectives To show the importance of communicating with customers and examine the concept of retail image To describe how a retail store image is related to the atmosphere it creates via its exterior, general interior, layout, and displays, and to look at the special case of non-store atmospherics To discuss ways of encouraging customers to spend more time shopping To consider the impact of community relations on a retailer’s image 18-2 Figure 18.1 Positioning and Retail Image 18-3 Figure 18.1b Positioning and Retail Image 18-4 Figure 18.2 The Elements of a Retail Image 18-5 In 3 Seconds… A shopper should be able to determine a store’s * Name * Line of trade * Claim to fame * Price position * Personality 18-6 Atmosphere The psychological feeling a customer gets when visiting a retailer * Store retailer: atmosphere refers to store’s physical characteristics that project an image and draw customers * Nonstore retailer: atmosphere refers to the physical characteristics of catalogs, vending machines, Web sites, etc. 18-7 Visual Merchandising Proactive, integrated atmospherics approach to create a certain look, properly display products, stimulate shopping behavior, and enhance physical behavior 18-8 Figure 18.3 Visual Merchandising and Gap 18-9 Figure 18.4 The Elements of Atmosphere 18-10 Exterior Planning Storefront Marquee Store entrances Display windows Exterior building height Surrounding stores and area Parking facilities 18-11 Alternatives in Planning a Basic Storefront Modular structure Prefabricated structure Prototype store Recessed storefront Unique building design 18-12 Store Entrances How many entrances are needed? What type of entrance is best? How should the walkway be designed? 18-13 Figure 18.6 How a Store Entrance Can Generate Shopper Interest 18-14 General Interior 18-15 Flooring Colors Lighting Scents Sounds Store fixtures Wall textures Temperature Aisle space Dressing facilities In-store transportation (elevator, escalator, stairs) Dead areas Personnel Merchandise Price levels Displays Technology Store cleanliness Figure 18.7 Eye-Catching Displays from Toys “R” Us 18-16 Allocation of Floor Space Selling space Merchandise space Personnel space Customer space 18-17 Figure 18.8 How a Supermarket Uses a Straight (Gridiron) Traffic Pattern 18-18 Figure 18.9 How a Department Store Uses a Curving (Free-Flowing) Traffic Pattern 18-19 Grouping Types Functional product groupings Purchase motivation product groupings Market segment product groupings Storability product groupings 18-20 Straight Traffic Pattern Advantages An efficient atmosphere is created More floor space is devoted to product displays People can shop quickly Inventory control and security are simplified Self-service is easy, thereby reducing labor costs 18-21 Disadvantages Impersonal atmosphere More limited browsing by customers Rushed shopping behavior Figure 18.10 Piggly Wiggly’s Open Traffic Design 18-22 Curving Traffic Pattern Advantages A friendly atmosphere Shoppers do not feel rushed People are encouraged to walk through in any direction Impulse or unplanned purchases are enhanced 18-23 Disadvantages Possible customer confusion Wasted floor space Difficulties in inventory control Higher labor intensity Potential loitering Displays may cost more Approaches for Determining Space Needs Model Stock Approach * Determines floor space necessary to carry and display a proper merchandise assortment 18-24 Sales-Productivity Ratio * Assigns floor space on the basis of sales or profit per foot Interior (Point-of-Purchase) Displays Assortment display Theme-setting display Ensemble display Rack display Case display Cut case Dump bin 18-25 Figure 18.11 Costco’s Online Storefront 18-26 Online Store Considerations Advantages Unlimited space to present product assortments, displays, and information Can be customized to the individual customer Can be modified frequently Can promote crossmerchandising and impulse purchasing Enables a shopper to enter and exit an online store in a matter of minutes 18-27 Disadvantages Can be slow for dialup shoppers Can be too complex Cannot display threedimensional aspects of products well Requires constant updating More likely to be exited without purchase Figure 18.12 Making the Shopping Experience More Pleasant 18-28 Figure 18.13 The Shopping Cart’s Role in an Enhanced Shopping Experience 18-29 Community-Oriented Actions Make sure that stores are barrier-free for disabled shoppers Show a concern for the environment by recycling trash and cleaning streets Supporting charities and noting that support at the company Web site Participating in anti-drug programs Employing area residents Running special sales for senior citizens and other groups Sponsoring Little League and other youth activities Cooperating with neighborhood planning groups Donating money and/or equipment to schools Carefully checking IDs for purchases with age minimums 18-30