Retail Marketing
Magic Solutions
RetailLecture12VisualMerchandisingandRetailImage2822019.pptxVisual Merchandising Retail Image and Promotional Strategy
NBS7030B
Retail Marketing & Management
Ratula Chakraborty
Professor of Business Management
Director MSc Programmes
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Lecture Outline
Retail Image
Visual Merchandising
Store Design and Layout
Retail Promotional Mix
Promotional Strategy
Purpose: To examine the concept of retail image, visual merchandising and retail store design to attract consumers and show how retailers use promotional strategy to encourage consumers to make purchases
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What contributes to a retailer’s image?
Physical Characteristics
Customer Service
Location
Merchandise
Pricing
Shopping experience
Community service
Shoppers
Advertising and promotions
1. Retail Image
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Retail Image
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Elements of a retail image
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Retail Image
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In seconds...
A shopper should be able to determine a store’s
Name
Line of trade
Claim to fame
Price position
Personality
...but you would be amazed just how badly some retailers fail to convey precisely what they sell to consumers....
Mary Portas (“Queen of Shops”) - Lightwater Homecare
How not to retail (4min): https :// www.youtube.com/watch?v=tnn8R5ebmF4
How to retail (3min): https:// www.youtube.com/watch?v=q9M8_XcSP2g
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Retail Image
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Atmosphere
The psychological feeling a customer has when visiting a retailer:
Store retailer: Atmosphere refers to store’s physical characteristics that project an image and draw customers
Non-store retailer: Atmosphere refers to the physical characteristics of catalogues, vending machines, websites, etc.
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Retail Image
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The Elements of Atmosphere
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Retail Image
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Exterior Planning
Storefront – style?
Fascia / Marquee – appropriate store name and signage?
Store entrances – how many?
Display windows – theme?
Exterior building height – used effectively?
Surrounding stores and area – fit in or stand out?
Parking facilities – how many spaces?
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Retail Image
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Interior Planning
Flooring
Colours
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
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Questions for Discussion #1
What feeling do you get when you walk into:
Waitrose vs Aldi
John Lewis vs Debenhams
Marks & Spencer vs Next
Zara vs Top Shop
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2. Visual Merchandising
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Definition:
A proactive, integrated atmospherics approach aimed to create a certain look, properly display products, stimulate shopping behaviour, and enhance physical behaviour Berman and Evans, 2010
Visual merchandising is concerned with presenting products to customers with the retail space, including
choice of store layout
method of product presentation
choice of fixtures and fittings
construction of displays
use of point-of-sale material
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Visual Merchandising
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Example: Shopping at Prada
Theme throughout the store: Example Prada New York Store – The Hours theme
Window display
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Visual Merchandising
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Window Dressing
So what makes a good shop window display?
Eye-catching and enticing
Creative use of themes,
lighting and backdrops
Focus on merchandise
3D depth for visual impact
Regularly changed
The Skillsmart Visual Merchandising Competition at London's Olympia
http://news.bbc.co.uk/1/hi/business/8131447.stm
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Visual Merchandising
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Interior Displays: Point of Purchase Fixtures
Shelving – e.g. home accessories stacked
Gondola – e.g. grocery products stacked
Railings – e.g. clothes hanging (front or side view)
Four-ways – e.g. clothes hanging (front and side view)
Round – e.g. books displayed on a carousel
Bins – e.g. discount DVDs dumped
Tables – e.g. gifts placed
Display cabinets – e.g. jewellery placed
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Visual Merchandising
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Interior Displays
Example: Eye-catching displays at M&M World
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Questions for Discussion #2
In the context of your group coursework:
What type of store layout will you be adopting?
What will be the key type of fixtures and fittings?
How will you make your shop window eye-catching and suitably appealing to passing shoppers?
What colour scheme and ambience will work best for your shop?
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3. Store Design and Layout
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Store design and layout needs to fit with the type and range of merchandise being sold
Use a grid format for efficient space utilisation and to help shoppers navigate the store easily
Use a free-flow format to encourage browsing and impulse purchases
The science behind your shopping experience (3min)
http://www.bbc.co.uk/news/uk-14554754
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Store design and Layout
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Small store using shelving to aid efficient shopping
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Store Design and Layout
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Records Store – Grid Layout
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Boutique using different displays for browsing
Store design and Layout
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Store Design and Layout
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Boutique – Free-Flow Layout
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Questions for Discussion #3
Which retailers do you find aesthetically pleasing?
Which stores and their layouts lead you to spend more money? Browse more? Buy on impulse?
What stores turn you off – that you cannot wait to leave?
How do retailers encourage shoppers to go right through the store (all the way to the back)?
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4. Retail Promotional Mix
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Elements of the Retail Promotional Mix
Advertising
Public Relations
Personal Selling
Sales Promotion
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Retail Promotional Mix
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1. Advertising
Paid, non-personal communication transmitted through out-of-store mass media by an identified sponsor
Key aspects
Paid form
Non-personal presentation
Out-of-store mass media
Identified sponsor
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Retail Promotional Mix
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Advertising Objectives
Lift short-term sales
Increase customer traffic
Develop and/or reinforce a retail image
Inform customers about goods and services and/or company attributes
Ease the job for sales personnel
Develop demand for private brands
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Retail Promotional Mix
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Advertising Characteristics
Advantages
Attracts a large audience
Gains pass along readership (for print)
Low cost per contact
Many alternatives available
Control over message content; message can be standardised
Message study possible
Editorial content surrounds ad
Self-service operations possible
Disadvantages
Standardised messages lack flexibility
Some media require large investments
Geographic flexibility limited
Some media require long lead time
Some media have high throwaway rate
Some media limit the ability to provide detailed information
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Retail Promotional Mix
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Advertising Media Alternatives – Part 1
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Retail Promotional Mix
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Advertising Media Alternatives – Part 2
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Retail Promotional Mix
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Advertising Media Alternatives – Part 3
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Retail Promotional Mix
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Types of Advertising
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Retail Promotional Mix
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2. Public Relations
Public Relations - Communication that fosters a favourable image for the retailer
Non-personal or personal
Paid or nonpaid
Sponsor-controlled or not
Publicity – Non-personal form of public relations whereby messages are transmitted by mass media. The time or space provided by the media is not paid for, and there is no identified commercial sponsor
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Public Relations Objectives
Increase awareness of the retailer and its strategy mix
Maintain or improve the company image
Show the retailer as a contributor to the public’s quality of life
Demonstrate innovativeness
Present a favourable message in a highly believable manner
Minimise total promotion costs
Retail Promotional Mix
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Retail Promotional Mix
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Public Relations Characteristics
Advantages
Image can be presented or enhanced
More credible source
No costs for message’s time or space
Mass audience addressed
Carryover effects possible
People pay more attention than to clearly identified ads
Disadvantages
Some retailers do not believe in spending on image-related communication
Little control over publicity message
More suitable for short run
Costs for PR staff, planning activities and events
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Retail Promotional Mix
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3. Personal Selling
Personal Selling: Oral communication with one or more prospective customers for the purpose of making a sale
Typical Personal Selling Functions
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Retail Promotional Mix
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Personal Selling Objectives
Persuade customers to buy
Stimulate sales of impulse items or products related to customers’ basic purchases
Complete customer transactions
Feed information back to company decision makers
Provide proper levels of customer service
Improve and maintain customer satisfaction
Create awareness of items also marketed through the Web, mail, and telemarketing
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Retail Promotional Mix
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Personal Selling Characteristics
Advantages
Message can be adapted
Many ways to meet customer needs
High attention span
Less waste
Better response
Immediate feedback
Disadvantages
Limited number of customers at one time
High costs
Does not bring customers into the store
Self-service discouraged
Negative attitudes toward salespeople
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Retail Promotional Mix
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4. Sales Promotion
Encompasses the paid communication activities other than advertising, public relations, and personal selling that stimulate consumer purchases and dealer effectiveness
Sales Promotion Types
Point-of-purchase displays
Contests (with prizes)
Sweepstakes (with winners picked at random)
Coupons / vouchers
Frequent shopper schemes
Prizes (for purchasing)
Samples (e.g. tasting food )
Demonstrations
Referral gifts (for bringing in new customers)
Special events (e.g. fashion show)
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Retail Promotional Mix
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Sales Promotion Objectives
Increasing short-term sales volume
Maintaining customer loyalty
Emphasising novelty
Complementing other promotion tools
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Retail Promotional Mix
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Sales Promotion Characteristics
Advantages
Eye-catching appeal
Distinctive themes
Added customer value
Draws customer traffic
Maintains loyalty
Increases impulse purchases
Fun for customers
Disadvantages
Difficult to terminate
Possible damage to retailer’s image
More stress on frivolous selling points
Short-term effects only
Used as a supplement
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Planning a Retail Promotional Strategy
5. Promotional Strategy
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Promotional Strategy
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Promotional Objectives
Increase sales
Stimulate impulse and reminder buying
Raise customer traffic
Obtain leads for sales personnel
Present and reinforce the retailer image
Inform customers about goods and services
Popularise new stores and websites
Capitalise on manufacturer support
Enhance customer relations
Maintain customer loyalty
Have consumers pass on positive comments
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Promotional Strategy
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Methods for Determining Promotional Budgets
All-you-can-afford method
Incremental method
Competitive parity method
Percentage-of-sales method
Objective-and-task method
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Promotional Strategy
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Getting promotional strategy right
Best High Street Retailer 2011: Richer Sounds
Richer Sounds relies on high volume from low-cost locations with limited promotion
Reputedly has the highest sales per square foot of any retailer in the world (Guinness Book of Records)
http://www.bbc.co.uk/news/business-13482956
https:// www.youtube.com/watch?v=Td41QLR2Suw (expert advice)
Lesson: Positive word of mouth is free promotion and builds customer loyalty and repeat custom
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Promotional Strategy
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Getting promotional strategy wrong
Example: Ratners’ public relations disaster
How the once largest jewellery chain in the UK was undermined by its CEO’s PR gaffe
http://www.youtube.com/watch?v=VHf3WLs3gLc (11:36 – 15:00)
http://www.youtube.com/watch?v=EkVdVb5qQWU&feature=related (00:00 – 09:40)
Lesson: Image is especially important with luxury or discretionary-purchase products
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Questions for Discussion #4
In the context of your group coursework:
What will be your promotional strategy?
What cost-effective means of promotion will you rely on?
How will you seek to build and maintain customer loyalty and encourage positive word of mouth?
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References
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Varley, R. and Rafiq, M. (2014), Principles of Retail Management, Palgrave MacMillan.
Berman, B. and Evans, J.R. (2010), Retail Management: A Strategic Approach, 11th edition, Prentice-Hall.
Thank You!
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