Retailing Management – Shopify Project 2.5 pages

(4) A description of the product assortment including your price point strategy

(5) An evaluation of your inventory management system

Part 3) The Website

· Provide a detailed descriptive of the website and it’s objectives

Part 4) Product Assortment

· Provide a detailed description of your product assortment and explain your price point strategies and how they connect with your target groups

Part 5) Inventory System evaluation

· Evaluate the product movement through your Inventory System maintenance over the next few weeks. How often were products purchased? Were you out of a specific colour/size, etc. How would you change the management of your Inventory System?

· How much product did you sell over the past few weeks, by item/size? (During class time, each student will have time to visit your website and make purchases) You will need to track and evaluate these purchases

https://www.shopify.com/login

Shopify account：[email protected]

Password：Kala3370326

Retailing Management

3. Website Description

Shopify is an online commerce platform that allows individuals to sell their products online or at a retail store. It also offers a payment solution and an application to power retail sales. Currently, the platform powers over 200,000 retailers spread across 100 countries. Beauty Star is an online store at Shopify that aims at promoting and selling beauty products to a diverse range of customers (Shopify, 2015). Shopify offers a platform that allows a user to customize product information and choose how the information is displayed to fit a given retail need. It also allows a user to personalize sales based on given preferences. Further, it allows a user to market the products and adopt price point strategies to attract buyers.

4. Products

Beauty Star currently offers five products. First, is the Clarisonic Mia3 Sonic Skin Cleaning System, which is a device used to cleanse all skin types. It clears all impurities on the skin, which traditional cleaning methods would otherwise fail to clear (Shopify, 2015). This product is targeted at young individuals in high school and college struggling with acne problems.

Foreo Awakening Radiance Yogurt Day Cleanser is a creamy cleanser containing of bergamot, apricot and mandarin. The product revitalizes the skin, keeps it hydrated hence making it soft, healthy and radiant (Shopify, 2015). This product will be targeted towards the middle-aged Exurban elite population, especially women with aging and chapping skin.

Foreo Celestial Melting Gel Night Cleanser is a gel that detoxifies the skin from any form of impurities obtained through pollutants (Shopify, 2015). Given the high rate of pollutants in major cities, this product will target the entire population. Foreo Luna for Sensitive/Normal Skin is a silicone facial brush for use by individuals with normal skin. It extracts dead skin, unclogs pores of dirt, and keeps the skin revitalized (Shopify, 2015). This product also reduces the signs of aging, and for this reason will target the middle-aged population in the rural midscale group. Lastly, Luna for Men The ultimate Pre-Shaving & Facial-Cleansing Device is a pre-shaving and facial cleansing device for men. It not only unclogs dirt pores but also leaves skin looking younger and revitalized (Shopify, 2015). This product will target the suburban elite.

Pricing is one of the most important elements of marketing. Pricing a product too high or too low could result in a loss of the company. A pricing strategy in business is therefore vital because if an entrepreneur gets its wrong, he or she might lose his business to the competition. In order to avoid this, I will first implement differential pricing. This includes offering shopping coupons to the buyers who are price sensitive. These coupons will use two approaches: a full price coupon and a discounted price coupon. This strategy will not only attract new customers but also keep existing ones. Another strategy would be to markdown the prices such that instead of $100, the price tag would be $99.95. This is aimed at giving customers the impression that the product’s price in reduced. Pricing will also take into consideration the competition in the market, fixed and variable costs and the willingness of a customer to pay.

In recent years, most businesses have begun using social media to promote and advertise their products. For this reason, I intend to grow my ecommerce website, by having a strong online presence and connecting the site to several social media platforms. What is more, I will consider developing a corresponding mobile application that will allow mobile users have access to company products as soon as they are connected to WiFi.

5. Inventory Management System

An inventory management system ensures a retailer maintains as little stock as possible and at the same time ensures that customers have enough of what they want. Mismanaged inventory might result in slower sales, unhappy customers, and too much debts. In order to maintain an effective inventory system, Beauty Star will incorporate a modern inventory management system. It will be able to track sales, monitor inventory, communicate with suppliers in time, and manage all data pertaining to purchases and supplies. It will also be flexible to accommodate changes, and will be able to communicate to the storeowner when it is time to order more items.

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