Adams Shoes Greece
Adams Shoes Greece
Adam's Shoes
Greece
DataGroup
Adam's Shoes
Greece
Adam's Shoes
CONTENTS
Indicates a dynamic link to the online data
Indicates a dynamic link to an Excel spreadsheet
Indicates a dynamic link to an Access database
Indicates a dynamic link to a PDF document
Indicates a standalone installable programme
CONTENTS............................................................................................................................................. 2
Retailer Analysis - Introduction ............................................................................................................. 20
Structure of this report ....................................................................................................................... 20
1.
Products ......................................................................................................................................... 20
Trading Area .................................................................................................................................. 20
Retail Competitors ......................................................................................................................... 21
Retailer ........................................................................................................................................... 22
Operations ..................................................................................................................................... 22
Buyers & Consumers ..................................................................................................................... 23
2.
Products ......................................................................................................................................... 24
Trading Area .................................................................................................................................. 24
Retail Competitors ......................................................................................................................... 24
Retailer Operations ........................................................................................................................ 24
Buyers & Consumers ..................................................................................................................... 24
3.
4.
SECTION 1 ........................................................................................................................................... 26
Analysis ................................................................................................................................................. 26
Part A : Base data on the Retailer ................................................................................................... 27
Part B : Financial Data..................................................................................................................... 42
2
................................................................................................ 42
............................................................ 43
........................................................................................................... 55
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Conversion Rates
..................................................................................................................... 58
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Store Facilities
Store Image
.......................................................................................................................... 83
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Conversion Rates
..................................................................................................................... 84
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Supplementary research
.......................................................................................................... 94
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Online Selling
......................................................................................................................... 100
Web Presence
........................................................................................................................ 102
Website Design
...................................................................................................................... 103
................................................................................................... 104
................................................................................................ 104
....................................................................................................... 106
Website Feedback
.................................................................................................................. 107
Web Demographics
................................................................................................................ 109
Internet Shopper
..................................................................................................................... 110
Online Purchases
................................................................................................................... 114
............................................................................................. 117
.............................................................................................................. 119
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................................................................................................................................ 124
Price Discounting
.................................................................................................................... 124
...................................................................................................................... 125
..................................................................................................................... 126
Differential Value
.................................................................................................................... 127
........................................................................................................ 128
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Stakeholder Management
...................................................................................................... 152
......................................................................... 153
.................................................................................................... 154
............................................................................................ 155
................................................................................. 159
............................................................................. 159
................................................................................................................... 160
Organisational Mission
........................................................................................................... 160
...................................................................................................... 161
Management Abilities
............................................................................................................. 161
Financial Resources
............................................................................................................... 162
Time Constraints
Objectives
.................................................................................................................... 162
............................................................................................................................... 162
Sales
....................................................................................................................................... 163
Profit
....................................................................................................................................... 163
Satisfaction of Stakeholders
Image Positioning
................................................................................................................... 164
Selection of Objectives
Checklist
................................................................................................... 163
........................................................................................................... 165
................................................................................................................................. 165
............................................................................. 166
...................................................................................................................... 166
Controllable Variables
............................................................................................................ 166
........................................................................................................................ 167
.......................................................................................................... 167
.................................................................................. 168
........................................................................................ 168
......................................................................................................... 168
Consumers
............................................................................................................................. 169
Competition
............................................................................................................................ 169
Technology
............................................................................................................................. 169
Economic Conditions
Seasonality
.............................................................................................................. 169
............................................................................................................................. 170
Legal Restrictions
................................................................................................................... 170
.................................................................................................... 170
............................................................................................... 170
................................................................................................................... 172
.................................................................................................................................. 173
Feedback
................................................................................................................................ 173
............................................................................................... 175
.............................................................................................................................. 177
................................................................................................................................. 178
.......................................................... 179
.................................................................................. 179
.......................................................................................................................... 180
.................................................................................................................................... 180
Standardisation
....................................................................................................................... 180
............................................................................ 181
Developed Markets
................................................................................................................. 181
Developing Markets
................................................................................................................ 181
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Customer Service
................................................................................................................... 195
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............................................................................................................ 197
.................................................................................................................... 197
Channel Relationships
............................................................................................................ 198
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8
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Product Purchases
................................................................................................................. 225
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15
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19
Products
The Product Groups (1 to 15) data is shown in the tables as
Product Group #1 to Product Group #15
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Greece
Attik
Voria Ellada
Kentriki Ellada
Thessalonki
Nisia Aigaiou Kriti
Athens
Ahaia
Irklion
Lrisa
Aitola kai Akarnana
Magnisa
vvoia
Dodeknisos
Srrai
Trading Area
The Trading Areas (1 to 15) data is shown in the tables as
Trade Area #1 to Trade Area #15
In addition data is given for all the significant Towns and Cities in Greece, a list of
these can found here:http://www.dg-di.eu/BASE_FOLDERS/World_Cities/GR.html
20
c.
Retail
Competitors
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
21
Brand Management
Product Management
Marketing & Selling Activity
Store Presentation & Merchandising
Product Offering Specifications & Characteristics
Product Quality Control
Design Research & Development
Customer Handling
Product Sourcing & Control
Financial Controls
Staff Training / Control & Relations
Product Throughput Capacity & Control
Supply System Control & Development
Distribution Control
Product Handling Systems & IT
Retailer
Operations
The Retailer Operations (1 to 15) data is shown in the tables as:
Operations #1 to Operations #15
22
Buyers &
Consumers
The Buyers & Consumers (1 to 15) data is shown in the tables as:
Buyers #1 to Buyers #15
f.
Analysis of the internal and external issues which affect Adams Shoes
The Analysis of Adams Shoes consists of about 23 Parts or chapters with over 3600 research issues
which have been investigated through Surveys of the Staff of Adams Shoes, the Customers, the
Competitive companies, Trade Suppliers, Logistics companies, Trade Buyers & Decision Makers,
Trade & Industry Experts, Banks & Financial Institutions, the Regulatory Authorities, and other
sources.
23
24
3. Market Research
The market research is Country specific, and provides data on all the Cities and Towns in the
home country: Greece
For a list of Cities and Towns:
http://www.dg-di.eu/BASE_FOLDERS/World_Cities/GR.html
The report provides historic, current and forecast Market data, Financial data for the retailers, Industry
data for the trade, Survey data, and a large body of market research for each of the Greece Cities and
major towns.
World Market Research data (on potential overseas expansion opportunities for Adams Shoes) is
available as part of the After-Sales Service.
4. Business Planning
This section provided Business Planning software and utilities.
To make the data handling easier, the documents and databases are also
supplied on DVD or Hard Disk Drive which can then be used as a standalone
data source or, if required, manipulated and correlated with business planning
or statistical software.
The breakdowns of Product Groups, Trading Areas, Competitors, Retail Operations, and Customer /
Buyer Profiles are limited to 15 in each group because the Excel spreadsheets frequently analyse the
correlation of data between 2 groups of 15. Because of the general limitation of record field numbers
(generally 255 fields) one can only produce a 15 x 15 matrix.
25
SECTION 1
Analysis
Adam's Shoes
Adam's Shoes
This report specifically refers to Adam's Shoes
This report specifically refers to the base country: Greece
Corporate Summary:
5. Company Description
6. Company History
7. Legal Entity & Ownership
8. Company Facilities
9. Company Key Assets
10. Mainline product / service
11. Product / services provided
12. Parent Company
13. Bankers
14. Year established
15. Current employees
16. Issued capital
17. Shareholders
18. Last published turnover
19. Subsidiaries
20. Associated companies
21. Companies represented
22. Agencies
23. Physical processing locations
24. Capital investment
25. Advertising expenditure
26. Advertising media
27. Advertising posture
28. Sales promotion activity
29. Method of selling
30. Distribution
31. Distribution network
32. Use of distribution channels
Corporate Observations:
33. Stores
27
Store Brands
Store Sales Channels
Products Carried & Services Offered
Consumer Features & Benefits
Current Market Analysis
Competition
Competitive Advantage
Target Markets
Target Customers
Current Strategy & Implementation
Current Management
Current Financial Plan
Investment Fund Sources & Use of Funds
Future Target Customers
Future Retail Trends
Future Market Analysis
Projected Market Size
Planned Products & Services
Development Plans
Swot Analysis:
53. Strengths
54. Weaknesses
55. Opportunities
56. Threats
Future Strategy Planning & Implementation:
57. Philosophy
58. Product Development
59. Internet Strategy
60. Marketing Strategy
61. Sales Strategy
62. Strategic Alliances
63. Operations
Goals:
64.
65.
66.
67.
68.
69.
70.
71.
Exit Strategies
Management:
72. Organisational Structure
73. Leadership
74. Staff Members
Financial Plans:
75. Finance Requirements
76. Use of Funds
77. Cash Flow
78. Balance Sheet Topics
79. Financial Assumptions
28
The above topics are covered as brief or concise elements to give an impression of the topic based
on trade and industry analyses. The body of the report provides the detail.
The Corporate Observations section is a concise headlining, or sound bites, of certain issues which
concern the retailer. In fact the Observations are based the analyses of several datasets which have
then been distilled into as few words as possible. In order to understand the data behind these
observations readers should consider the datasets shown below.
1. Company Description
A brief description of the activities of the company.
2. Company History
The corporate milestones for the company.
3. Legal Entity & Ownership
4. Company Facilities
Retail Locations
Distribution
Property Portfolio
Production
Brands
Cashflow position
Copyrights
Customer Base
Customer Relations
Designers
Franchisees
Internet Presence
Investments
Liquidity
Locations
Management
Market Share
Patents
Product Range
Staff Abilities
Trademarks
Value Proposition
6. Stores
7. Store Brands
Product Range
Product Value
Product Quality
Product Design
Product Fashion
Store service
Payment options
Customer services
12. Competition
Value Proposition, Price, Quality, Store Locations, Customer Loyalty, Customer Services
Male, Female. Under 18, Youth Trendy, Younger, Professional, General demographic,
Mature, Older. Discount, Mid-priced, Upscale, Luxury
Public, Institutional, Bank, Private. Use of Funds: Exceptional, Productive, Mediocre, Illadvised, Poor.
30
31
SWOT ANALYSIS:
26. Strengths tested:
Advertising Effectiveness
Brand
Business Alliances
Business Innovation
Competition
Consumer base
Cost advantages
Culture
Customer Service
Direct delivery capability
Economies of Scale
Excellent customer service
Experience and understanding of the Retail industry
Experience in the field
Financial Resources
Future Changes available
Good reputation among customers
Good Staff Training
Good Website
Industry knowledge
Innovative sales techniques
Intangible Strengths
Large administration component
Management
Market Lead
Market Location
Market Share
Personnel
Product Uniqueness
Proprietary knowledge
Relationship marketing
Relationship with customers
Relationship with employees
Relationships with suppliers
Reputation
Shopping experience and customer service
Sole supply agreements
Standards
Store Fitting & Systems good quality
Store Locations
Strong Brands
Superior product performance vs. competitors
Technology
Training
Unique brands
Use of new technology
32
Buyers changing
Change in market demand
Changes in demographics
Changing consumer interests
Changing fashion trends
Cost and effectiveness of marketing to target markets
Currency fluctuations
Customers power growing
Direct competition
Economic climate
Emergence of substitute products
Environmental effects
Fixed Costs
Foreign exchange rates
Indirect Competition
Local conditions
Location
Loss of control of product prices
Low cost competitive products
New regulations
New retail competitors
Obsolete product range
Pressure on margins
Product substitution
Regulations
Shifts in consumer tastes
Slow or Declining market growth
Substitute product market
Suppliers power growing
Technology
34
Contract theory:
Business contract theory holds that a business is a community of participants organized around a
common purpose. These participants have legitimate interests in how the business is conducted
and, therefore, they have legitimate rights over its affairs. Most contract theorists see the enterprise
being run by employees and managers as a kind of representative democracy.
Stakeholder theory:
Stakeholder theorists believe that people who have legitimate interests in a business also ought to
have a voice in how the business is conducted. The obvious non-owner stakeholders are the
employees. However, stakeholder theorists take contract theory a step further, maintaining that
people outside of the business enterprise ought to have a say in how the business operates. Thus,
for example, consumers, even community members who could be affected by what the business
does, for example, by the pollutants of a factory, ought to have some control over the business.
Business as property:
This philosophy holds that the business is essentially someone's property, thereby its owners have
the right to dispose of it as they see fit, within the restraints imposed by the law. Workers and
consumers have no special rights over the property, other than the right not to be harmed by its use
without their consent. Workers voluntarily exchange their labour for wages from the business
owner; and they have no more right to tell the owner how he will dispose of his property than the
owner has to tell them how to spend their wages, which is property belonging to the workers.
Furthermore, consumers have no rights to govern or manage the business, which belongs to
someone else.
Diversification Strategy
Product Modification Strategy
Concept Product Development
No discernible strategy employed by the retailer
The development of new products or services or modifying existing products or services so they
appear new, and the offering those products or services to current or new markets is an important
process for all companies.
Diversification Strategy:
Product diversification involves modifying the companys product/s or service/s to expand into new
markets by leveraging the companys existing product or service experience and reputation.
This strategy is especially attractive for companies operating in a saturated market. The product
diversification strategy calls for the company to go outside its existing business and develop new
products or services for a customer segments and new markets. This diversification might be based
on appealing to new customer demographics or price points.
35
Regardless of which product development strategy is utilized, the process requires thoroughness
and a series of benchmarks throughout the process. These benchmarks help the company to
assess whether the expensive and time consumed in the product development process should be
continued.
Potential consumers must play a vital role in the product development process, and the consumer
evaluation of the new products or services should be conducted at concept, prototype and final
product stage.
Employee productivity.
Operational effectiveness.
Reduction of operating costs.
Competitive advantage.
Intra-company communications.
Communications with suppliers.
Communications with customers.
Marketing presence online.
E-Commerce & Online ordering.
Poor internet strategy.
Internet Strategy
The company should have a specific, fully costed, plan to invest in an Internet presence to sell
product online by advertising, marketing, taking orders, fulfilling orders, invoicing and collect
payment over the Internet.
Is the companys online strategy fully planned?
Is the retailers website a me too rationale?
Does this retailer have a valid business reason to operate an online selling site?
Does the online selling operation adversely reflect on the retailers brand?
Would the retailer be better advised to seek other channels to the market?
Will the retailers prospective product buyers search for them on the Internet?
Can the retailer adequately describe and demonstrate the value proposition of the products
over the Internet?
8. Can the retailer successfully compete in the online market space?
9. Can the retailer make a profit from the Internet?
1.
2.
3.
4.
5.
6.
7.
36
Marketing Strategy
The marketing strategy is composed of several interrelated components which embraces the
marketing mix:
Is the retailer adequately targeting their appropriate customers base or subset (segment)?
2. Product planning
Does the retailer properly segment its products for selected customers segments?
Do the retailers products have features which are uniquely targeting the market?
3. Pricing
Does the retailers pricing strategy reflect a quantitative expression of the value of the
product to the customer?
Is the retailers pricing designed like a feature consistent with the use of the product?
Is the retailers Price v- Features matrix realistic?
4. Place
5. Promotion
a. Positioning: Does the retailers messages state the purpose and benefits of the product in the
market in which it competes?
b. Selling: Does the retailer rely on indirect selling which is subject to uncontrollable conditions?
c. Communications
Are the retailers target customers adequately informed about the product features and
benefits and thereby persuaded to buy them?
Does the retailer fully exploit branding opportunities?
Can the retailers customers rely on good customer support and service?
Manufacturing alliances
Logistic alliances
Supply Chain alliances
Retailing alliances & Joint ventures
Equity alliance
Non-equity alliance
Geographic alliances
38
36. Operations
Evaluation of the operations strategies which influences the retailers performance:
GOALS
Evaluation of the achievement of goals which influences the retailers performance:
39
EXIT STRATEGIES
Envisaged / Unknown / Not planned.
Operations
Brands
Product Lines
Store Locations
Operating divisions
Operating companies
Shareholders & Investors
MANAGEMENT
Evaluation of the retailers management:
46. Leadership
Company Leadership: Resourceful / Professional / Dependable / Flexible / Cost effective /
Ineffective / No comment
FINANCIAL PLANS
48. Finance Requirements
Companys Financial requirements: Well met / Sustainable / Adequately met / Unsustainable / No
comment
41
1. Retail Revenue
26. Debtors
27. Miscellaneous Current Assets
30. Creditors
42
Return on Capital
Return on Assets
Return on Shareholders' Funds
Pre-tax Profit Margins
Operating Profit Margin
Trading Profit Margin
Return on Investment
Assets Utilisation (given as a ratio of Sales
to Total Assets)
Sales as a ratio of Fixed Assets
Stock Turnover (Sales as a ratio of Stocks)
Credit Period
Creditors' Ratio (given as Creditors divided
by Sales times 365 days)
Default Debtors given as a Ratio of Total
Debtors
Un-Recoverable Debts given as a Ratio of
Total Debts
Working Capital / Sales
Materials & Energy Costs as a % of Sales
Added Value
Investment as a Ratio of Added Value
Value of Plant & Equipment as a % of Sales
Vertical Integration (Value Added as a % of
Sales)
Research & Development Investment as a
% of Sales
Capital Expenditure Investment as a % of
Sales
Marketing Costs as a % of Sales
Current Ratio (Current Assets as a ratio of
Current Liabilities)
Quick Ratio
Borrowing Ratio (or Total Debt as a ratio of
Net Worth)
Equity Ratio (Shareholders Funds as a ratio
of Total Liabilities)
Income Gearing
Total Debt as a ratio of Working Capital
Debt Gearing Ratio (Long Term Loans as a
ratio of Net Worth)
43
44
45
In-House Brands
Data is given on the 15 main products which are considered as being In-House Brands or Own
Brands. This is the In-House Brand addendum.
46
Demographic Data
It is assumed that product preferences vary across different groups of consumers. These preferences
relate directly to consumer demographic characteristics, such as household type, income, age, and
ethnicity. For this reason, it is not only the amount of demand that truly matters to a trading area; the
Mix of Consumers also has a major impact on a trading area, and therefore must be thoroughly
examined in all retail analyses. Albeit, there is a great deal of data included in these studies which
then has to be analysed. The enormous amount of data can leave the user with a large number of
tables and consequent information overload; therefore a number of toolkits are provided by
DataGroup to assist users with software to present and interpret the data.
Population and household composition data allow one to quantify the current market size and
extrapolate future growth. Population is defined as all persons living in a geographic area.
Households consist of one or more persons who live together in the same housing unit;
regardless of their relationship to each other (this includes all occupied housing units).
Households can be categorized by size, composition, or their stage in the family life cycle.
Typically, demand is generated by the individual or the household as a group. Thus, the entire
family influences a household purchase, such as a family car or TV. Individual purchases, on
the other hand, are personal to the specific consumer. Anticipated household or population
growth may indicate future opportunities for a retailer. An analysis of household and/or overall
population growth provides aggregate potential retail demand in a population.
Household income data is a good indicator of the populations spending power. Household
income positively correlates with retail expenditures in many product categories. When
evaluating a market, retailers look at the median or average household income in a trading
47
Highly affluent households with annual incomes above $200,000 comprise one of the
fastest growing segments of the population; increasing in some countries by more
than 3 percent each year since 2008. They are strong consumers, as well as
physically active and conservative in their habits. Gearing a retail mix toward this
segment may require a focus in luxury goods and services. High-end department and
technology stores, as well as cultural amenities like museums and concert halls, are
frequented by the most affluent households within a population.
Middle-income households with annual incomes between $50,000 and $100,000 are
much more mindful of their expenses than highly affluent families. These households
tend to be more frugal and selective in their buying behaviour, shopping at discount
outlets for groceries and other goods rather than high-end stores, especially since
2008. Superstores are particularly popular for middle and low-income households.
Education levels also figure into the socio-economic status of an area. Because income
usually increases with advancing educational attainment, many retailers focus on income
level rather than education. There are some exceptions to this, though. Bookstores are often
cited by retailers as a business whose success is directly correlated with the number of
college educated individuals in the trading area. Similarly, computer and software stores are
often located in areas with high levels of education. In general, areas with high levels of
educational attainment tend to prefer luxury items; and, they may have a preference for
shopping at smaller, non-chain specialty retail stores located in the fashionable districts. They
also tend to visit cultural establishments like museums and theatres at a frequency over three
times greater than those without a college degree. On the other hand, less-educated
populations generally have lower incomes and thus tend to prefer shopping at discount retail
outlets and chain stores. This group also spends more money on car maintenance and
tobacco products than those with a college degree.
Occupational concentrations of white and blue-collar workers are used as another gauge of a
markets product preferences. Speciality apparel stores thrive in middle to upper income
areas and those with above-average white-collar employment levels. Discount clothing stores
48
Ethnicity is another factor retailers consider when choosing merchandise to carry. Data show
that ethnicity affects spending habits as much as other demographic characteristics, such as
income and age. Tastes in goods and services vary between ethnic groups, and local retailers
are wise to cater to the different needs of ethnic groups in their trading area. Ethnicity
influences retailers product mix, including the lines of clothing they carry, and their
advertising. Retailers that use segmentation based on race and ethnic groups must make
sure their efforts effectively measure the true preferences and behaviours of the community.
Housing ownership and rate of housing turnover is an important factor for some retailers to
consider. Home ownership directly correlates with expenditures for home furnishings and
home equipment. Furniture, appliances, hardware, paint/wallpaper, floor covering, garden
centres and other home improvement products all prosper in active housing markets.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Greece
Attik
Voria Ellada
Kentriki Ellada
Thessalonki
Nisia Aigaiou Kriti
Athens
Ahaia
Irklion
Lrisa
Aitola kai Akarnana
Magnisa
vvoia
Dodeknisos
Srrai
In addition the individual Cities and Town in Greece are provided in the Market Research in Section 3
http://www.dg-di.eu/BASE_FOLDERS/World_Cities/GR.html
Comparing the target trading area with other populations and the regional data allows demographic
baselines to be established. These baselines will help determine whether the target trading area has
low, median, or high values in each demographic category. For instance, after examining
demographics for the target trading area, it may appear that there are a high proportion of white-collar
workers. However, this observation cannot be verified until one know what constitutes an average
number of white-collar workers.
49
Comparable populations can include five or six urban areas of similar size in the same region. The
urban areas chosen should reflect similar distances from metropolitan statistical areas of the region.
Depending on the geographic size of ones primary trading area, one will need to select similar-sized
trading areas.
In addition to comparable populations, adding regional or national statistics will provide a broader
benchmark for comparing a specific trading area. Regional or National data will include a blend of
urban and rural areas. Accordingly, it will not be limited to uniform populations. However, differences
between the trading area and the regional or national data (such as per capita income) will be used
later in ones analysis of retail or service business opportunities.
Lifestyle Data
Adding consumer lifestyle data takes the market analysis nearer to the reality of any market
forecasting situation. This data recognizes that the way people live (lifestyle) influences what they
purchase as much as where they live (geography) or their age, income, or occupation (demography).
Lifestyle data enables one to include the consumers interests, opinions, and activities and the effect
these have on buying behaviour in the retail analysis.
Demographics
Socioeconomic Classes
Consumer Behaviours
The Segmentation will include quantitative data, such as the Consumer Values Models, Product Life
Cycle Models, Buying Power Index, Quality Index, Advertising Efficiency Models, and so forth, which
measures potential demand for specific products or services groups. These indices compare the
demand for each market segment with demand from both regional and national consumers. It is
tabulated to represent a value of 100 as the average demand. The indices can be aggregated into a
single value. Values above 100 indicate residents are more likely to purchase that product or
participate in the respective activity. Conversely, values below 100 indicate residents are less likely to
purchase the given product. These values are then shown for the Trading Area of the specific
Retailer, the Regional and National values and the overall Median value.
In this report there are 15 Product Groups represented:Product
Product Group #1
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #8
Product Group #9
Product Group #10
Product Group #11
Product Group #12
Product Group #13
Product Group #14
Product Group #15
Trading Area
Regional
National
Median
From this data, a clear picture of the important demographic, socioeconomic, and consumer
behaviour of residents in a specific Trading Area emerges.
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Lifestyle segmentation generalizes the types of customers in the trading area, which is useful in
making sense of a complex market. However, this simplification may not fully capture the particular
behaviours of the customer base or may overlook the propensity to consume of differentiated groups
in the trading area. Since data is continually updated in these DataGroup databases, lifestyle
segments are evaluated in near real-time. This is valid both where social and economic conditions
remain constant and where significant changes may make a static view of the segment less
representative of reality.
Thus lifestyle segments can greatly help one understand customers in the trading area only where the
survey data is gathered and updated on a regular and statistically valid basis.
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GIS is used to combine all of the demographics extracted from every visitor neighbourhood.
Combining the trading areas creates a demographic profile of the visitors. To aid in the analysis, GIS
also creates a demographic profile of the larger region. The regional demographic profile includes
every trading area in the region instead of just those neighbourhoods that produced visitors. These
profiles are then used to examine differences in visitor demographics.
Demographic Category
Males
Females
Average Household Size
Median Age
Age Less Than 18
Age 16 or More
Age 25 Or More
Age 65 or More
Median Household Income
Average Household Income
Per Capita Income
Education: High School
Education: College
Education: Qualification
Education: Degree
Education: Higher Degree
Occupation: Executive
Occupation: Professional
Occupation: Technician
Occupation: Sales
Occupation: Clerical
Occupation: Services
Occupation: Production
Home Owner
Home Renter
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Regional Profile
National profile
Neighbourhood Analysis
The ideal tenant mix in which a retailer locates a store will depend on the various indicators of retail
success including sales density, visitor traffic, visitor demographics and often more importantly, the
nature and customer base of the other retailers in the retail space.
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Site Analytics
Performance management for individual stores
The understanding of the circumstances and causes of each and every variation in the revenues of a
retail operation is the basis of every successful retailer. The analysis of retail data correlated with
industry and market data allows retailers to react to events by seizing opportunities and facing
challenges.
The ability to address critical issues, not only the vagaries of the market and consumer demand, but
also seasonal variations, staffing levels, customer satisfaction data, retail store upgrades and layout
changes, marketing initiatives, and so forth, will allow retailers to perform better than competitors.
Site Analysis
It is essential for retailers to analyse and integrate data from each site. This includes sales, inventory,
visitors, conversion rates, staffing numbers, marketing and advertising promotions, public holidays,
weather, and other variables. This data gathering should be automated and DataGroup can provide
clients with suitable site based software that will capture this data.
Site Analytics
The analysis of the data will provide retailers with many tangible business planning tools, including:Trade Analysis of Adams Shoes:
13.
14.
15.
16.
17.
18.
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Footfall
19. The footfall patterns which are typical during each month of the year.
20. The peaks or troughs which may be affecting business performance and where changes
could be made, for example, expenditure on advertising and marketing activity to boost traffic,
or efficient resource allocation for peak visitor periods.
21. How footfall patterns differ in each site and in a representative area.
22. Correlations between store sales revenues and regional and national monthly footfall trends
23. Variations in footfall patterns between competitive retail sectors and outlet types.
Footfall Analysis
The collection of this data is essential to the analyse and understanding of customer behaviour and
trends as well as to allow retailers to understand conversion rates and retail location characteristics in
order to improve their business planning and forecasts. The understanding of footfall data can allow
the evaluation and understand of before and after scenarios for marketing and promotional activity;
understand footfall during both slack as well as peak periods; benchmark performance amongst
individual sites and generally in regions; and allow the use to see how and when one might improve
ones profit ratios. Essentially, one gains insight into how one might optimise sales performance
through better sales efficiency, conversion rates, and customer service.
Footfall Analytics
The question of whether a retail site is performing to its full potential can only be answered if one can
analyse visitor numbers and compare those with other sites, other competitors and other distribution
outlets.
Essentially, the first question one must ask is if the property is properly positioned and located for
maximum profit and minimum risk.
Retailers use the data to locate their store portfolio, organise their markets, and segment their
customer data.
Retailers can measure the effectiveness of each location in attracting potential customers to their
premises. This is done in conjunction with different methods of marketing and promotion for different
store locations to develop an understanding of store performance and untapped store potential. This
is then extended to analyse conversion ratios to determine whether footfall numbers can be converted
into tangible sales.
Footfall Technology
The technology used to capture footfall data is relatively straightforward and essentially consists of instore sensors which count visitors and the appropriate data recorder and software to record those
visits. These sensors will consist of one or more of the following technologies, Car Counting Retail
57
24. Classification which differentiates product location type and discrete areas within a store.
25. Reporting routines which allow control of each type of report, report schedules, and delivery.
26. Alerts whereby managers can receive text alerts when performance crosses a pre-set
threshold.
27. Rankings which identify best and worst performers according to criteria such as shopper
traffic, sales, costs, performance against target and staff numbers.
28. Personalisation of the system to accommodate multiple languages and time zones and which
will automatically switch to the pre-set requirements of users across the globe.
Conversion Rates
Conversion Analytics
The Conversion Rate is of course a vital issue. After having invested in footfall, the retailers want to
know how to convert that footfall into revenue. These measurements also allow retailers to identify
poorly performing stores where footfall is not being converted into sales.
Conversion Factors
The factors which influence conversion rates are complex; however they are decipherable with the
use of suitable software. Data analysis allows all the relevant factors to be considered when
evaluating and formulating store strategies. These may include the following issues:Trade Analysis of Adams Shoes:
58
Approval and usage of advertising services for company, retail outlet or brand purposes:
1. Which of the following best describes the line decision makers position within the company?
a. Owner
b. Chief Executive
c. Partner
d. Senior executive in charge of advertising, marketing, brand.
e. Executive in charge of advertising, marketing, brand.
f. Professional consultant
g. Finance/accounting/purchasing
h. Marketing
i. Office manager
j. Outlet / Site manager
k. Administrative assistant
l. Technical or IT professional
m. Sales professional
n. Other
2. Where (Town, State, Country) is the office/site located?
3. How many employees work at this location?
a. 1 to 17
b. 18 to 19
c. 20 to 99
d. 100 to 199
e. 200 or more
f. Other
4. Select the range that best describes the approximate annual sales for the company at this
location.
a. Less than $100,000
b. $100,000 to $499,999
c. $500,000 to $999,999
d. $1 million to $5 million
e. $5 million or greater
f. Dont know or Other
5. How much would you estimate you spent (in total) on the following advertising, sales and
marketing activities (at this location) in the past 6 months?
a. $0
b. Less than $500
c. $500 to $1,500
d. $1,500 to $9,000
e. $9,000 to $20,000
f. $20,000 to $50,000
g. $50,000 or More
h. Don't know
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60
10. If you conducted a direct mail campaign in the past 6 months, which of the following items did
you send as part of the most recent campaign you ran?
a. Postcard
b. Coupon
c. Letter
d. Newsletter
e. Brochure
f. Gift item
g. Other
11. How satisfied are you with the overall results of your direct mail campaigns; that is, the
increase in sales you generated or the overall impact on your business.
a. Extremely satisfied
b. Somewhat satisfied
c. Neither satisfied nor dissatisfied
d. Somewhat dissatisfied
e. Extremely dissatisfied
12. If you outsourced your advertising, print production, or direct sales campaigns, what was your
opinion of the performance you received:
a. Poor value for the money/ price
b. Low quality of finished product
c. Too complicated
d. I like to be able to see the proofs or samples before the campaign
e. Uncomfortable outsourcing
f. Want to do it ourselves
g. Slow speed of service
h. Too much of a hassle to switch vendors
i. Dont trust the supplier
j. Other
13. How likely would you be to outsource your advertising, print production, or direct sales
campaigns?
a. Very likely
b. Somewhat likely
c. Somewhat unlikely
d. Very unlikely
e. Other
14. If you use a direct mail or sales prospect list, how did you acquire the list that you used most
recently?
a. The companys own customer list
b. Purchased a list from an external list broker
c. Purchased a list from a catalogue
d. Purchased a list from a direct mail agency
e. Purchased a list from an on-line list service
f. Did not acquire a list
g. Dont know
15. Would you be likely to consider using a list from a partner company, and providing your
company list in exchange?
a. We dont use lists or use only the companys customer list
b. List quality important
c. Uncomfortable with sharing
d. Too much of a hassle to arrange co-operative deals
e. Other
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16. Regarding the role you play in selecting Website Services for your company. For each of the
items below, tell us what your individual involvement is in the purchasing process.
a. Advertising
b. Determine need to purchase
c. Evaluated various products/vendors
d. Authorised / approved purchases
e. Determined where to purchase
f. Placed orders
g. All of the above
h. Other
Focus Panels
Customer Surveys of Adams Shoes:
In respect of the current (Test / Benchmark) advertisement campaign that promotes this company /
product / brand and current advertisement campaign of 14 competitive companies / products / brands:
18. After considering the advertisements, divide them into three groups. That is, arrange the
advertisements into those you:
a. Will watch over and over again
b. Might watch several times
c. Never want to watch again
19. What people, characters, or things stand out in the advertisements?
20. What thoughts and feelings is each person or character having during the advertisements;
and how do you know that?
21. What are some ways that the product enhances the situation being shown; and where in the
advertisement did you see, hear, or feel that?
22. What are some impressions that you take away from the advertisements?
23. Is that impression positive or negative?
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25. Tell us about a situation in which you have consumed/used/bought/etc. the product and felt
like the people or characters shown in the advertisement.
26. After watching the test or benchmark advertisement. What people, characters, or things stand
out in the advertisement?
27. What thoughts and feelings is each person and character having during the advertisement?
How do you know that?
28. What does the advertisement say about the product? Where in the advertisement do you see,
hear, or feel that?
29. What parts of the advertisement don't seem to fit together? That is, parts of the advertisement
that causes some confusion or perhaps is distracting?
30. Pick out the concept or feeling you think is most closely associated with the advertisement.
a. achievement and success
b. living an active and full life
c. making smart choices
d. freedom to be one's self
e. self-reliance
f. being accepted by others
g. caring for others, particularly the underdog
h. being young at heart and in appearance
i. personal security
j. being a good parent
k. making a better world
l. living a comfortable and contented life
31. After seeing the companys advertisement, tell me how strongly you think it will motivate
people like you to purchase the product during the next one or two weeks?
32. How do you rate the advertisement?
33. Why do you think it will motivate people like you to purchase the product?
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Evaluation of TV, Newspaper, Print, and other advertisements viewed for the retail store:
44. Indicate your evaluation of Store Newspaper or Print advertisements:
a. Entertaining
b. Effective
c. Interesting
d. Attractive
e. Informative
f. Professional
45. Indicate your evaluation of Store TV, Radio, and Internet advertisements:
a. Attractive
b. Interesting
c. Informative
d. Professional
e. Entertaining
f. Effective
46. Indicate the number of friends, relatives or neighbours consulted while researching for this
product.
47. Indicate the number of TV or radio advertisements that you remember seeing during your
search for the product purchased.
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59. How does the Companys product(s) rate on the following attributes?
a. Not At All Descriptive
b. Very Descriptive
i. High quality
ii. Expensive
iii. A brand I can trust
iv. Well built
v. A good value
60. What other brands of product(s) in this category have you used?
a. I haven't used the product(s), but I'm familiar with it.
b. I know nothing about the product(s).
61. What is it that you like about the product(s)?
62. What do you like least about the product(s)?
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67
Shopper behaviour is constantly changing and by understanding the response to different marketing
approaches and channels, one ensures the best value from the marketing budget.
Site Analytics enables one to capture the timings and category of marketing campaigns, alongside all
the critical site data to evaluate marketing within the context of key variables such as weather, time of
year and critical outcomes such as traffic and retailer sales lift.
In considering the overall direction of the company's marketing effort, how would you rate:
73. the company's vision and direction?
74. the overall company operations today, compared with a year ago?
75. the financial strength of the company?
76. the efficiency of workflow in the company?
77. the company's skill in marketing products?
78. the ability to develop strong consumer promotions?
79. the regular introduction of new products?
80. the introduction of new, innovative packaging?
81. the company's focus on improving customer satisfaction?
82. the quality of relationships with distributors?
83. the company's effectiveness with retailers?
84. the quality of the promotional activities?
85. the quality of the sales support materials?
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Customers demand an in-store experience in return for shopping (in personal) at speciality retail
outlets; and increasingly at general retailers as well. The improvement of store-level operations is
often not a prime concern of senior corporate managers; however failure to be aware of the
expectations of customers will only damage profitability. An effective site operations program which
creates a differentiated (and hard for competitors to replicate) store experience will attract and hold
the attention of shoppers.
Delivering an experience that is satisfying to customers and differentiated from competitors drives
both repeat visits and improved store productivity. Conversely, a failure in satisfying the expectations
of a fulfilling experience will leave customers wanting to try competitive offerings; be that a new store
brand or an existing store brand with a new offer or promotion. Furthermore, a bad store experience
will generate a ripple of negative comments with that customers family, friends, and co-workers.
For every retail situation, the interaction with the customer represents a mosaic of perceptions,
neuroses (and indeed psychoses) on the part of the customer; within the container which represents
both the store environment and the actions of store personnel. The help the customer (indeed to help
the customer spend his or her money) the retailers must provide an appropriate store experience
which includes:Expert and Industry Appraisal of Adams Shoes:
Whilst the Product & Retail Offer design presents to the customer the outward sign of the store
experience, this can represent a major investment for the retailer, and any defects may entail major
upgrades such as new layouts, a new visual image, and brand enhancements; and these often
require substantial capital investment and time commitment to execute. Likewise, customers perceive
the impact of offer Support Programs that might be introduced at a corporate level, however even the
best programs must be underpinned by effective and consistent on-site execution. Otherwise, the
retailer makes promises and offers in its advertising and other communications that many of the
outlets cannot fulfil for operational reasons. By contrast, Site Operations, can be rapidly improved and
this will yield improvements in the customer experience and result in improvements in revenues.
Reliable store performance to ensure a high level of customer store experience will lead to greater
customer loyalty, consistent repeat business, and more flexibility to expand the product offering.
The key to reliable store performance is properly selected, trained, and motivated employees who are
more productive, consistently more effective with customers, and more aware of store effectiveness
and performance. In such retail environments a retailer can expect like for like outlet revenues to be
25-50% greater than the average. Notwithstanding the fact that personnel performance
enhancements take time to implement, such improvements involve little or no capital outlays and help
differentiate a retailers stores from those of competitors.
Retailers should consider and expect several factors to be critical to their operation:4. A consistent product offering from friendly and knowledgeable employees who quickly assist
and guide customers to the right products.
5. Help and Advice with customer requests.
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For retailers to excel in consistent site operations they must understand that sustained execution
requires more than just operations manuals and a full complement of staff.
Retailers must develop and use interconnected operating system with detailed and fully defined
processes that can deliver a consistent customer experience across the entire store chain.
Through clearly defined customer interaction scripts, detailed daily activities guides and employee
schedules, targeted hiring, training, and development, and a motivating career path and
compensation plan, employees have the tools and authority to truly focus on the customer and deliver
the right experience again and again.
Without a thorough store operating system, retailers (irrespective of enormous and creative
advertising, strong product offers, and high quality store designs) will be compromised.
Sales and profit margins may vary across a store network. Customer numbers and sales may vary by
200-300% across individual stores; however in trying to understand what accounts for performance
differences one might naturally look at individual store locations and customer traffic flow, local
competitive set and density, differences in size, layout, and age of store, and local marketing and
pricing. However retailers often fail to understand the impact on revenues from an inconsistent
customer experience.
Variances in customer store experience produce a 20-40% sales performance difference. In contrast
to the other factors, this portion of the difference is not structural and can be remedied rapidly and
effectively.
Retailers should use independent Mystery Shoppers and regular Customer satisfaction surveys to
monitor these dynamics.
Expert and Industry Appraisal of Adams Shoes:
Site operations:11.
12.
13.
14.
15.
16.
17.
18.
Improving store-level operations usually yields a high return on investment and tends to increase
sales and margins by between 5-15%. Good quality site operation creates a sustainable competitive
advantage and differentiation, in addition to a reinforced culture of customer focus, motivated and
productive employees, and lower staff turnover. Such improvements benefit retailers of all sizes,
formats, and competitive positions and unlock latent value from store operations
The benchmark of all good retailers is the placing the customers at the very centre of the site
operation. However much managers may be involved in hiring staff, organisation, and maintaining
sites, the prime imperative must be the dynamic between customer and store experience. Retailers
cannot allow this vital relationship to vary store by store due to the vagaries of either inconsistent
store presentations or employee training. Managers must ensure that adequate systems exist which
provide staff-customer interaction guides, customer handling scripts, service tools, and explicit
systems which guarantees that employees know how to treat customers and create a consistent store
experience.
Senior corporate managers at retailers should maintain a regular and rigorous, critical assessment of
the current operations in order to identify if and where gaps exist with best practice.
A professional product offerings and brand management are of course essential; however they must
be complemented by consistent site execution at each outlet.
Expert and Industry Appraisal of Adams Shoes:
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
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55.
56.
57.
58.
Offer support
Product or service offer pricing and management
Advertising, promotions, and CRM
Supply chain management
Network planning and real estate management
Administration and information Management
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Distribution channels
Retailers that operate franchise, license, or dealer distribution channels must seek to control the onsite operations of their distributors, especially in the matter of customer store experience.
Customers do not differentiate between one type of store operation and another, they only see the
store brand and they expect and demand a consistent level of customer service.
The most successful franchisors make sure that their franchise operating system and standards
enable the franchisees to execute the required customer experience.
Retailers distributing their products via third party outlets need clear guidelines for their distribution
channel:Expert and Industry Appraisal of Adams Shoes:
74. Establish customer service standards which are formalised and part of the distribution
channel contract.
75. The customers store experience must be specified in manuals and training.
76. Performance targets must be set and monitored. These may include transaction speed,
staffing levels, and response times.
77. Site operating systems to help distributors recruit and train employees, define roles and
customer interactions, manage the stores activities and staffing, and measure performance.
78. Distributor support systems and training.
79. Enforcement of standards amongst distributors. Formalised monitoring of site operations, for
example, mystery shoppers, customer intercepts, coaching audits, surprise visits, and
scorecards to ensure accurate feedback and corrective action.
80. A suitable compensation and reward system which incentives distributors to improve
performance.
The store experience must have the following elements:Expert and Industry Appraisal of Adams Shoes:
81.
82.
83.
84.
85.
86.
87.
Excitement
Innovation
Investment in Digital devices, POS and Display
Quality design concepts
Showcasing
Technology
The Beating Heart of the brand
With Main Streets and High Streets in decline, and evidence of tough times in shopping centres and
malls, it is becoming increasingly clear that retailers cannot simply sit back and wait for consumers to
pass their doors. Retailers have to develop their stores as Destinations. Consumers come to the store
not because they happen to be passing down the street, but because they are specifically attracted to
the store.
Retail multiples are bombarded with the constant noise and distraction of independents that open a
store with a local fanfare, distract the consumer, and then equally quickly disappear. These
independents, whilst being a nuisance, can act as a stimulus to established retail chains because the
independents often bring innovative approaches and interesting service offerings to consumers. The
retail chains can often learn from independents and apply the lesson across their network.
Multiples engage in gimmickry on an ad hoc basis from time to time. The Selfridge's department store
in London produced a "No-Noise" in-store promotion whereby they attempted to sell name brand
products with no logos. The store suggested that it was, "To help you find balance in this fast-paced
world customers to find a moment of peace in a world where we are bombarded by a cacophony of
information and stimulation."
Burberry has used digital high tech for its brand of reinvention. The grand opening of its largest Asia
Pacific store dramatized its bad weather gear by making it virtually rain during its "Burberry World
Live" launch. Then Burberry turned its flagship London store on Regent Street into a "living website"
a digitally-enhanced shopping experience that filled the 44,000-square foot space with innovations of
all kinds (including that previously debuted digital rain). In the Chicago store it hosted a local event
that continued the theme of "retail as theatre," incorporating digital media, entertainment and fashion.
These however are more evidence of over exuberant PR people rather than any real attempt to
produce meaningful in-store experiences.
More significant was when Marks & Spencer installed 10 virtual mirrors in their retail stores to coincide
with their virtual mirror application available on their website. Customers can see, in-store, how
cosmetics and make-up look against their skin, without actually applying the makeup. This uses
technology which helps the customer consider choices and possible combinations without the time
and inconvenience of the actual physical application of cosmetics.
The use of digital technology to display products, select products, pay for products and ultimately
deliver products to the customer will increase in the future and retailers should offer this as an option
to customers. The integration information provision to the customer and e-commerce is attractive to
many customers.
For the future there is the suggestion of the availability of ad hoc product designs, indeed in one
London shopping centre a company offers 3D printing which manufactures products to order. 3D
printing for general use may be some way away, but it is coming.
Similarly the use of new materials is also coming. Imagine the use of Graphene and other advanced
materials in a consumer context.
To future proof their positions in the market retailers have to expand their thinking:95.
96.
97.
Implementation:
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Visual Trademarks
The retailers identifiable trademark and logo provides a visual image to trigger the consumers
memory recall of the store name. This is done with a combination of words, pictures, colour, shape,
typeface, texture and/or style to make the image prominent. The overall image of the store must be
Identifiable even in the absence of the store name (which might be obscured because of the viewing
angle or some obstruction. The successful trademark image should be unique, indicative of the
retailers products and services, and be consistent with the overall impression the retailer wishes to
imprint on the consumer.
Unmistakable Storefronts
Storefronts must provide instant recognition and memory recall, both at a distance and up close. The
use of a well-designed combination of exterior architecture, signing and window displays initially
ensures a powerful first impression, and thereafter reinforces that impression each time it is viewed by
the consumer.
Exterior Architecture
The store exterior look is often referred to as the architecture, and comprises of various
aspects such as building materials, architectural style and details, colours and textures.
The stores architecture must accord with and reinforce the consumers expectation of the
retailer and the brand.
Store Signage
Store signage is the essential element of the storefront, identifying the retail brand and
encouraging consumers to patronise the store. The value of strong storefront signage cannot
be underestimated, both in terms of brand recognition and competitive advantage in a
crowded retail landscape.
Store Faade
The store frontage should entice and inform passing potential consumers. Consumers should
consult a stores windows as they might look at the stores catalogue or web site. The more
interest, movement and animation found in the store window the greater the effect on
potential consumers.
Vantage Point
The design of the storefront must consider the customer's vantage point, the speed of
passing foot and motorised traffic, and the opportunities available to attract the attention of
potential customers.
A storefront with a 90 angle of approach will very rarely be adequate, either in a street
location or a shopping mall. The direction of customer traffic flow is influenced by various
factors, site access points, the location of nearby parking or public transport, the nearby high
traffic volume venues, and the width of streets or shopping mall corridors, et cetera. All these
factors will influence how and from where consumers view the storefront. A good retail
storefront design will include modular elements which will allow individual storefronts to be
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Store Entrance
The store entrance can be a barrier to entry or an invitation. The flow from the outside to the inside
should be effortless. Whereas street locations do pose questions of security, energy conservation and
the reduction of exterior nuisance; in shopping malls retailers can use wide and open entrances which
allow seamless entry from the mall to the store. Many retailers rely on impulse purchases and
therefore it is important to create an open storefront by removing physical barriers and providing an
unobstructed view into the store interior with a glass frontage. Removing barriers also includes
removing the clutter of notices, credit card signs, unrelated logos, and other muddle which tends to
build up in retail locations.
Those stores which require doors for climate control, security or because the store offering suggests a
need for intimacy, have less opportunity to attract impulse buyers; and therefore the task of a
welcoming store entrance is even greater. For such retailers, an unobstructed and welcoming
entrance accompanied with a well-designed window display is essential.
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Does the Exterior communicate to the customer who the retailer is, and what they sell?
Does the Fascia present the name, logo, corporate graphics and colours?
Is the Store entrance open, semi-open, funnel / recessed / lobby, standard door?
Is the Window display eye-catching?
Is the Orientation and Vantage point of the suitable?
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Visual Hook
A visual hook is analogous to the hook in music that produces a hit tune. It is a refrain, often
repetitive, which calls attention to the store and re-enforces both the store brand and consumers
sentiments towards the brand. Powerful visual hooks are created integrating visual merchandising
components to give a more memorable impression. An exciting store presentation, effectively signed
product offerings, powerful interior displays, in-store animation or events, all help attract customers to
the store.
Effective visual hooks provide an impetus to consumers, especially the impulse buyers. By creating a
compelling hook for product offerings using the appropriate techniques a retailer can greatly increase
impulse buys and encourage passing trade. Increasingly brand hooks use sensory mechanisms for a
total image package.
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What did you think about the Store Floor Colour Scheme?
How would you describe the Store Colour Scheme?
Should the store change or modernise the colour scheme?
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232.
233.
What did you think about the Changing Rooms, Rest Rooms and other facilities?
Were the stores facilities clean?
Were the stores facilities decorated appropriately?
Should the store change or modernise their facilities?
234.
235.
236.
237.
What did you think about the Store Product Pricing system?
Are all products priced using a pricing system for a uniform appearance?
Are the prices attached in a consistent pricing channel?
Should the store change or modernise the Product Pricing system?
238.
243.
244.
245.
246.
247.
What did you think about the Store Maintenance and General Appearance?
Did you notice any badly maintained areas?
Was the sales area clear of miscellaneous paraphernalia?
Were the staff untidy?
Were the product displays badly maintained?
248.
249.
250.
251.
252.
81
Display Type:
294.
295.
296.
297.
298.
299.
Floorstands
Endcaps
Powerwings / sidekicks
In-line / gondola / full-line merchandisers (specialty)
In-store media
Digital signage
Placement of display:
304.
305.
Primary
Secondary
Variables:
306.
307.
Lighting
Customer Surveys of Adams Shoes:
Store Facilities
Customer Surveys of Adams Shoes:
325.
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
o.
p.
q.
r.
326.
327.
328.
Rest rooms
Restaurant or cafeteria
Samples
Shopping bags
Specialist advisers
Storage
Telephones
Ticket outlets
Valuation services
Water fountains
Store Image
Customer Surveys of Adams Shoes:
331.
332.
333.
334.
335.
Did the store Image meet your expectation of the Store Brand?
Were you happy with the store Image?
Did the store Image confirm the Retailers Product Quality?
Did the store Image confirm the Retailers Product Value?
Did the store Image confirm the Retailers Product Brand/s?
336.
337.
338.
339.
340.
341.
342.
343.
344.
345.
346.
347.
Conversion Rates
Customer Surveys of Adams Shoes:
Did the Exterior of the store influence your decision to enter the store?
Did the Interior of the store influence your decision to look at the products?
Did your experience of the store influence your decision to purchase?
84
What ranking do you give to your First Impression of the Store (1 to 10)?
What ranking do you give to the Store after your first impression (1 to 10)?
What ranking do you give to the Store in comparison to the competitors (1 to 10)?
Derived from the Customer Surveys. Customer Ranking of the Retail Site (1 to 10):
354.
355.
356.
357.
358.
359.
360.
361.
362.
363.
364.
365.
366.
367.
368.
369.
370.
371.
372.
373.
374.
375.
376.
377.
378.
379.
380.
381.
382.
383.
384.
385.
386.
387.
388.
389.
390.
391.
392.
393.
403.
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
o.
p.
q.
Select the scale that best indicates the way you would describe the store.
Good selection
High prices
High quality
High fashion
Good service
Easy to shop in
Friendly
Good sales and promotions
Sophisticated
Traditional
Different
Take chances
Confident
Creative
Sociable
Stands out in the crowd
Simplified lifestyle
86
Research shows that an important part of the marketing mix is the use of materials and devices that
stimulate sales where the action is the point of purchase.
The decision-making process of shoppers frequently does not occur until they actually see a product
in the store. Therefore, the way a product is displayed in a store and is supported by in-store
marketing materials can often be instrumental in leveraging sales.
Purchasing Behaviours
Customer Surveys of Adams Shoes:
87
10. Specifically planned: Purchases the shopper specifically identified by name or brand, before
entering the store, and which they then actually purchased in-store.
11. Generally planned: Purchases that were referred to generically, before entering the store, but
not bought by particular brand.
12. Unplanned: Purchases that were not mentioned, before entering the store, and were bought
on impulse.
89
The in-store decision rate is calculated by taking the sum of the purchases that fall under Generally
Planned, Unplanned, and Substitutes categories. The average in-store decision rate, across all retail
sectors, in developed countries, is about 40%.
The suggestion that shoppers are planning their purchases less, and deciding more at the shelf, is not
strictly accurate as more shoppers are stating that they did not find what they were looking for when
they entered the store. This means that the product, brand or size of the article they were seeking
was not available and thus they had to purchase something else, or go to another store.
When shoppers do make an impulse purchase this is usually not because of impulsiveness but
because it was a purchase of something that they had forgotten and they remembering that they
needed or wanted an item once in the store. The second reason for impulse buys was because
shoppers say that the item was on sale or at a lower price than at a competitive store.
Consumer Surveys
In-Store Purchase Process and Evaluation Survey
Customer Surveys of Adams Shoes:
Close to home
Close to favourite shopping area
Lowest prices
Fast payment
Fast in and out
Happy with brands
Never had trouble with their products
Have a credit card for that brand of store
Like the products
Friendly service
Force of habit
Other
19. In an average month, about how much does your total household spend on the product?
20. Do you have a Store or a Store-linked card?
21. What are the three best features you would expect to get with a store card?
a. Generous grace period
b. Bonus rewards for frequent purchases
c. Low interest rate
d. Use for several different companies
e. Easy to get one
f. End of year rebate
g. Free gifts
h. Promotions
22. At the time of the purchase decision, I had little time to search for information.
23. There was a wide difference in performance between the available choices.
24. Because the product was being offered on sale for a limited time period, I felt I needed to
purchase the item quickly.
25. If this product broke down I would feel that replacement or repair was a high priority.
26. My (our) budget was very tight at the time of the purchase.
27. I felt obligated to make a careful analysis of the alternatives before making a selection.
28. I have one or two favourite stores I shop in for this type of purchase.
29. I felt it was necessary to talk to a number of friends or family because of my lack of
knowledge and expertise about this product category.
30. I felt I would obtain a better deal on this item by shopping around and comparing prices.
31. I like to devote considerable time and energy when making a product choice such as this one.
32. Selecting an appropriately styled product was very important to me.
91
92
Survey research methods measure contemplative opinions of the respondents and rely on techniques
such as surveys or facilitated focus groups. For accuracy one need a valid sample size which is
usually in the range 500-1500 valid responses.
Store Audit
In preparation for the customer surveys the store layout was surveyed and each day an audit of
specific display types throughout the store was conducted prior to the start of interviewing. The
purpose of the store audit is to record and identify the display materials which produce a measureable
impact on customer decision-making and emotional response.
The store audit includes, a traffic flow pattern, an aisle schematic, photographs and spatial position of
each display present as well as coding of the following information:
Supplementary research
Researchers and mystery shoppers equipped with smartphone and mobile applications which could
register reactions are able to analyse the impact of displays:-
69. Degree to which displays (as defined earlier) make it into shoppers line of sight.
70. Identify the display types and locations that generate the most impressions and greatest
activation.
71. Amount/percentage of time spent engaging with these displays (by audit variables such as
display type, location, and placement).
72. Degrees to which these displays are noticed, stopped at, interacted with and drive purchases.
73. What is the emotional response (valence) to these displays?
74. What is the shoppers track or path throughout the store?
75. What are the search patterns and navigational strategies shoppers use to find and select
products?
76. How much time is spent considering these categories?
94
96
Did the salesperson seem to lack knowledge about some aspect of the product or
business?
98.
Did the salesperson offer to find out about anything which he/she was uncertain about?
99.
Did the salesperson offer to go to the stock room and try to find it an item which was not on
display?
100. Did the salesperson offer to call another store or order an item not in stock?
Proficiency
Customer Surveys of Adams Shoes:
99
Stores
Expert and Industry Appraisal of Adams Shoes:
Brand Management
Product Management
Marketing & Selling Activity
Store Presentation & Merchandising
Product Offering Specifications & Characteristics
Product Quality Control
Retail Developments
Customer Handling
Product Sourcing & Control
Financial Controls
Staff Training / Control & Relations
Product Throughput Capacity & Control
Supply System Control & Development
Distribution Control
Product Handling Systems & IT
Online Selling
Globalisation and technology is at the heart of future growth. Retail is increasingly a global business,
bringing about changes in consumer wealth distribution and the manner in which their demands are
met. A middle class with disposable incomes is now to be found in many developing countries and
this has altered the landscape of retail distribution, with the need to service both domestic as well as
overseas consumers.
As input materials prices, wages and transportation costs fluctuate, and as currency rates shift around
the world, there is a dynamic within the retail supply chain in relation to where goods are
manufactured, how they are distributed, and how they are shipped to their final consumers. Retailers
increasingly have to turn their focus away from domestic consumption, and to the complexity of crossborder sales, made even more complex due to different platforms of selling internationally to more
sophisticated global consumers.
Over 25% of online shoppers around the world (mainly the younger demographics in the developing
countries) made their first online purchase within the two years. Furthermore consumers in the rapidly
developing economies are shopping online nearly four times as often as those in the post-industrial
developed countries. Social media also allows people to research or follow specific retailers or brands
without limits on borders. Each of these trends, as they continue to evolve globally, creates both direct
and indirect impacts on how bricks-and-mortar stores are perceived in different countries.
Each year some 50 million consumers in the Asia-Pacific region will join the ranks of online
consumers. By 2020 these new consumers will be spending an amount equivalent to that spent by
consumers in developed countries now. E-commerce sales growth in the Asia-Pacific countries is
increasing at greater annual rates than those in developed countries. The reason for this is not only
the nature of the consumer demographics in these countries, but also the deficiencies in the nature
and distribution of traditional retailers.
As e-commerce and mobile commerce and supporting infrastructure accelerates around the world, it
is encouraging new distribution channels in developing markets. Multinational retailers can test the
100
Brand Management
Product Management
Marketing & Selling Activity
Product Offering Specifications & Characteristics
Product Quality Control
Online Developments
101
Customer Handling
Product Sourcing & Control
Financial Controls
Product Throughput Capacity & Control
Supply System Control & Development
Distribution Control
Product Handling Systems & IT
Delivery Promptness
Complete Delivery
Web Presence
Retail website, product and satisfaction survey:
Customer Surveys of Adams Shoes:
102
Website Design
Customer Surveys of Adams Shoes:
103
47. Were you able to find suitable answers to your questions while browsing the website?
48. How much time did it take to find your answer?
a. A lot less than I expected
b. Less than I expected
c. About what I expected
d. More than I expected
e. A lot more than I expected
49. Based on your experience, how would you rate the quality of the companys website?
f. Very high quality
g. High quality
h. Average
i. Below average
j. Unacceptable
50. Tell us what can be done to improve the quality of the information on the companys website?
104
54. Did you find what you were looking for on the companys site?
a. Yes, I found exactly what I was looking for
b. Yes, but not the Brand / Size / Colour / Etc.
c. I found a related product, but not what I wanted
d. No, I didn't find what I was looking for
e. Other
55. If you did not find exactly what you wanted, explain what you were looking for.
56. How likely are you to recommend and revisit the companys site?
a. Very Likely
b. Likely
c. Unsure
d. Unlikely
e. Extremely Unlikely
f. Other
57. Do you have a suggestion or recommendation to improve the companys site?
58. How likely are you to return to the companys Web site?
59. How likely are you to recommend the companys Web site?
60. What features had influenced your decision to continue using the website?
61. What is it about the site that you would most like to see improved?
62. What changes or additional features would you suggest for the website?
63. In a typical week, how many hours do you spend visiting this website?
a. 0 to 1
b. 1 to 2
c. 2 to 4
d. 4 to 10
e. More than 10
64. How did you first hear about this site?
a. Search engine
b. Another web site
c. Newspaper/magazine article
d. Friend or business associate
e. Advertisement
f. Don't know/don't remember
g. Other
105
65. How did you find out about the companys site?
a. Followed link from another web page
b. Followed a graphical banner/icon from another web page
c. Found by using a search engine
d. Saw postings to www-related news groups
e. Received e-mail from mailing list
f. Was told URL by friend
g. Read about it in newspaper/magazine
h. Don't remember or Other
66. What is your age?
a. under 13
b. 13-17
c. 18-34
d. 35-49
e. 50-64
f. 65 or older
67. How many hours per day are you on-line?
a. 0-1
b. 1-2
c. 2-3
d. 3-4
e. 4-5
f. More than 5
68. What do you enjoy doing in your spare time?
a. Theatre or cinema
b. Hunting
c. Sports
d. Reading
e. Video / Computer Games
f. Movies
g. Fishing
h. Arts and Crafts
i. Automobiles
j. Trivia
k. Restaurants
l. Gardening
m. Cooking
n. Computers
o. Other
69. What do you use the internet for?
a. Information Gathering
b. Academic Research
c. Shopping
d. Games
e. News
f. Sports News
g. Real Estate
h. E-mail
i. Job Hunting
j. Classifieds
k. Stock Market
106
Other
Website Feedback
Website feedback and respondent Internet usage:
Customer Surveys of Adams Shoes:
72. Rate the companys web pages for the following aspects:
a. Homepage
b. Customer Support information
c. Product information
d. Contact information
e. Downloads
73. What were your reasons for your last visit to the companys site?
a. Product information
b. Customer Support information
c. Competitive information
How likely are you to?
74. Revisit this site on a regular basis
75. Recommend the companys site
76. Where did you hear about the companys website?
a. Online or link from another web site
b. Online news service
c. Newspaper or magazine
d. Friend
e. Search engine
f. E-mail advertisement
77. How often do you visit the companys site?
a. Every day
b. Several times a week
107
78. When browsing the companys site, how long do you typically spend here?
79. How frequently do you surf the web?
a. Every day
b. Several times a week
c. About once a week
d. Several times a month
e. About once a month
f. Less than once a month
g. Not sure (don't keep track)
80. In a typical week, how many hours do you spend surfing?
81. What do you regularly use the web for?
a. News
b. Work research
c. Personal research
d. Investments
e. Shopping
f. Auctions
g. E-mail
h. Chat/communities
i. Web-based address book/calendaring
j. Banking
82. How often have you used the web to gather product information?
a. Every day
b. Several times a week
c. About once a week
d. Several times a month
e. About once a month
f. Less than once a month
g. This is my first time
83. When do you plan to purchase a product via the internet?
a. Immediately
b. Within the next week
c. Within about a month
d. Within 3 months
e. Within 6 months
f. Within a year
g. More than a year
h. Not sure
84. What is your primary use of the product(s) / service(s)?
a. For work
b. For home
c. For school
108
Web Demographics
Customer Surveys of Adams Shoes:
109
Internet Shopper
Study benchmarking internet use and shopper profiles and behaviour:
Customer Surveys of Adams Shoes:
91. Did you personally make, influence, or participate in any purchases on the Internet during the
past 3 months?
92. About how much in total did you spend on those purchases:
93. About how much of this was spent on gifts for others:
94. What types of products did you purchase on the Internet?
a. Groceries
b. Software
c. Books or magazines
d. Computer hardware
e. Music, CDs, recordings
f. DVDs
g. Home Electronics
h. Travel (airlines, car rentals, hotels)
i. Clothing
j. Flowers
k. Tickets (concert, movies, etc.)
l. Services (insurance, legal)
m. Other items
n. Other services
95. About how much did you & all other people in your household spend for gift-giving during this
past 3 months?
96. Overall gift purchases, in total:
97. About how much of that was spent on:
a. Purchases at local retail stores:
b. Purchases through mail-order catalogues:
c. Purchases on the Internet:
98. About how many hours per week is a computer in your home usually used on-line for e-mail
or the Internet?
99. How many hours per week is spent on your home computer:
a. personally on-line for e-mail or Internet access
b. personally for purposes other than on-line access
c. by someone else on-line for e-mail or Internet access
d. by someone else for purposes other than on-line access
100. Think about your own personal use of a computer in your home just during the last 3
months. About how often did you use it for each of the following activities?
i.
Daily
ii.
2-3 times a week
iii.
Once a week
iv.
2-3 times a month
v.
Once a month
vi.
Under once a month
vii.
Not at all
a. Check or send e-mail messages
b. Look at financial information (stocks, trends)
c. Read on-line news or magazines
d. Conduct business-related work
e. Visit Internet sites related to my hobbies
f. Visit auction sites
g. Visit other retail sites looking for merchandise
110
I think on-line buying is (or would be) a novel, fun way to shop.
102.
103.
104.
105.
Local stores have better prices & promotions than Internet stores.
106.
107.
108.
109.
111.
112.
113.
114.
115.
116.
117.
118.
120.
121.
122.
123.
125.
I think local stores have better service policies than Internet stores.
126.
I always search for the lowest price in just about everything I buy.
127.
129.
130.
131.
132.
133.
134.
135.
136.
137.
138.
112
113
Online Purchases
Customer Surveys of Adams Shoes:
172.
a.
b.
c.
d.
e.
How many online purchases have you made in the last month?
None
1-4
5-10
11-15
16+
a.
b.
c.
d.
e.
a.
b.
c.
d.
e.
f.
g.
a.
b.
c.
d.
e.
f.
g.
173.
174.
175.
176.
What are the top two Product or Special Interest Group sites you visit?
a.
b.
c.
d.
Before starting this survey, how familiar were you with the companys website?
Not familiar
Heard of website
Visited website
Made purchases
a.
b.
c.
d.
e.
f.
177.
178.
114
a.
b.
c.
d.
e.
f.
How many times did you visit the companys website over the last month?
Never
1-3
4-6
7-10
11+
Don't remember
a.
b.
c.
d.
179.
180.
181.
Which item would you be interested in purchasing from the companys website?
182.
Given the item you have specified, now how beneficial might the website be to you?
a. Not beneficial
b. Somewhat beneficial
c. Beneficial
d. Very beneficial
183. If you were buying a GIFT, which items on the companys website would you consider?
a.
b.
c.
d.
e.
How many purchases have you made at the companys website over the last year?
None
1-3
4-6
7-10
Don't remember
a.
b.
c.
d.
e.
f.
How would you describe your experience visiting the companys website?
Never visited site
Poor
Mediocre
Neutral
Good
Excellent
184.
185.
186.
187.
a.
b.
c.
d.
e.
f.
115
188.
a.
b.
c.
d.
e.
f.
a.
b.
c.
d.
e.
f.
g.
a.
b.
c.
d.
e.
189.
190.
191.
Compared to other product(s) in this category that are available, would you say that
the product(s) is:
a. Much better
b. Somewhat better
c. About the same
d. Somewhat worse
e. Much worse
f. Don't know or never used
192.
a.
b.
c.
d.
e.
f.
a.
b.
c.
d.
e.
f.
193.
116
Consumers perceive few boundaries in their shopping behaviours and retailers need to find efficient
and effective ways to manage the intricate logistics involved in serving consumers.
Whether retailers fully appreciate these changes in the retail distribution world is debatable and one
must analyse the technological developments and the implications for order fulfilment.
202. Growth in e-commerce and its influence on the movement, storage and sale of
merchandise from production through consumer
203. The impact of technology on the supply chain and consumer behaviour
204. The increasing pace of trend cycles and inventory management which affect all parts of the
retail supply chain
205. The changing nature of retail in a global shopping environment
118
206. Sales goals should be set for each promotion and a bonus reward should be offered to
each salesperson that reaches their goals.
207. Effective planning to have enough staff on hand to make the events run effectively.
208. Sufficient or additional inventory. Special items and assortments.
209. Evaluating the best promotional days and months. Selection of days and months that you
drive the most traffic to the store.
210. Detailed planning of the event and systemisation of the process.
211. Effective planning of advertising and direct mail.
212. Press release effectiveness.
213. Event Hook that draws the attention of potential visitors quickly before the direct mail is
lost.
214. Creating an excitement that it triggers a Fear of Loss in the customers mind.
215. Effective Event or Promotion Theme different to competitors.
216. Social Media to generate word of mouth advertising.
Loyalty Schemes
Customer loyalty schemes are an effective way to improve your customer-retention levels. The high
cost of bringing in new business compared to retaining existing clients is undisputed, thus increasing
customer retention can significantly boost bottom-line profits. Notwithstanding, many companies are
missing a trick when it comes to building customer loyalty.
In a competitive marketplace where customers find it easy to switch supplier, loyalty schemes are an
effective way to increase customer retention and improve profitability. To build a loyal clientele,
keeping the customer satisfied with ones day-to-day operations is not always enough. The fact that
customers are satisfied does not stop them from taking their business to a competitor who offers them
something extra.
To increase loyalty, one needs to recognise and reward the best customers. A loyalty scheme can be
used to incentivise and delight the most valued customers. That in turn can increase profitability.
Loyalty initiatives allow one to focus on the best customers and improve customer satisfaction levels.
Loyal customers buy more and are often willing to pay more, which boosts cashflow. By increasing
loyalty, one can increase profitability and extend the time they place their business with the company.
Loyal customers are also good for business because the customer become the best advocates of the
company. They recommend the company to others, saving marketing costs. A loyal customer's
endorsement is more powerful to their friends and family than any advertising campaign.
Customers like loyalty schemes because they feel they are getting rewarded for giving the company
their business. Thus the scheme needs to offer customers something they will appreciate. However, it
should also be devised with profit in mind.
The company is trying to reward customers for behaving in the way that it wants.
The rewards offered to regular customers can vary from fixed discounts to extra goods or prizes.
Foremost, the scheme should be simple to use and the rewards should be attractive and attainable. If
119
Social Media
Social media in a retail context is the action of Peer pressure to create sales.
As social media had evolved, so has how consumers make purchase decisions, particularly the
younger and more suggestible demographics.
The constant interconnectedness of social media sites, coupled on mobile devices have snowballed
the effects of peer opinion on purchases. Crowd Sourcing, meaning the tapping of the collective
awareness of ones peer group, or a section of the audience, is a growing trend.
Over 50% of this younger demographic is likely to explore brands via a social network, versus less
that 27% of older demographics.
Over 50% of this younger demographic versus less that 20% of older demographics use mobile
devices to access user opinion before buying a product.
The growth of photo-sharing and similar websites that allows users to create and share products and
ideas go viral faster than before. Over 30% of online shoppers have made a purchase based on what
they saw on such sites. Retailers are increasingly using these sites for marketing promotions.
Caution should however be exercised before large marketing investments are made in this area. As
with all trendy and fashion driven activities, especially those concerning the younger demographics,
the shelf life of these market efforts are limited and unpredictable. There are already signs of user
fatigue with social media sites and user growth in these activities will become unsustainable in the
future. When that happens, the use of these promotional venues by retailers will become counterproductive.
120
Pricing Study
This survey is about the Companys brand(s) / product(s) / service(s) as described to respondents
individually and as a basket of products.
The baseline for this survey is the 15 major Product Lines of the Company. A more comprehensive,
with individual products and more product groups is available on request.
1. How would you best describe your familiarity with the Companys brand(s) / product(s) /
service(s)?
a. I was not aware of the brand / product / service
b. Only generally aware
c. Have investigated or researched such products
d. Have demonstrated a product like this
e. Have purchased or regularly use a product like this
2. About how many units of these products would you buy over the next year at each price point
listed below (FMV Fair Market Value)?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. FMV = Estimated Fair Market Value = Recommended Retail Price
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
3. About what price would you expect to pay for these products / services?
4. At what price would these products begin to look inexpensive or cheap?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
121
11. Based on the description, how interested would you be in buying the described brand /
product / service; if priced within your budget?
a. Not at all interested
b. Not very interested
c. Not sure
d. Somewhat interested
e. Very interested
12. What is it that you like most about the described brand / product / service?
13. What do you like least about the described brand / product / service?
14. Which of the following best describes your need for the described brand / product / service?
a. I really need this product because nothing else can solve this problem.
b. This is a minor improvement over what I currently use.
c. Looks okay but is about the same as what I'm using now.
d. My current product would serve me better.
e. I am not at all interested in this product.
Pricing Strategies
Price Discounting
Many retailers reacted very quickly to the financial crisis by discounting prices across the
board without fully understanding the impact on demand or profitability. This has had a
dramatic effect in many retail sectors where recession-driven discounting has fundamentally
eroded both the value of the market, and the value proposition of the product sold.
Consumers price expectations are lower and buying behaviour has changed.
Unsustainable Pricing
Whilst retailers know that current price levels are not sustainable, they also recognise that
downturn discounting has re-set the price baseline for consumers, who are now unwilling to
pay more. This problem is compounded by inflation and rising input costs, causing retailers to
be squeezed from both sides.
Customers Segments
Retailers cannot identify their most profitable customers segments, and do not have the
information available to understand the impact of price changes on demand patterns.
Recession-driven discounting has attracted and retained less profitable customers and this
has serious implications for the go-to-market strategy.
123
Strategies
Expert and Industry Appraisal of Adams Shoes:
Price Discounting
When demand fell in the wake of the financial crisis, retailers were driven by the need to maintain
sales volumes and protect market share, therefore critical pricing decisions were taken in a hurry and
many retailers resorted to price reductions across their product and service portfolios.
Retailers were forced to make reactive pricing decisions without adequate information and many
companies felt compelled to competing on price.
20. When survival is the key driver, dropping price is an understandable response as volumes
fall.
21. Discounting products or services which are price elastic result in an increase in sales
volumes.
22. Clear understanding of the trade-off between volumes and margin.
23. Impact of price changes on demand, and the impact on profitability.
24. Understanding of the customer base and the price elasticity of various customer segments.
25. Discounts are often driven not by an informed understanding of market dynamics but by sales
personnel and their incentives.
26. Store success is frequently measured by sales volume, rather than the profitability of the
revenue.
27. Retailers needed to look at their pricing processes and controls to ensure their pricing
strategy was effectively implemented and monitored.
28. Performance metrics should be linked to profit as well as volumes; and appropriate controls,
such as target and limit prices, should be embedded into company policies.
124
66% of retailers state that increasing prices from recession discount levels presents a
significant challenge
55% of retailers state that they are unable to pass on cost inflation to customers
Stagnant Prices
65% of retailers state that recession-driven discounting will not be sustainable in the long
term.
52% of retailers state that their companys overall pricing strategy is not sustainable.
Retailers fear that price increases will face stiff market resistance, because customers used to a
decade of low inflation, followed by heavy price-cutting, perceive discounts to be the norm. A majority
of retailers, 56%, state that customers who enjoyed discounts during recession will be unwilling to pay
higher prices in better times.
Expert and Industry Appraisal of Adams Shoes:
125
Inflation
With consumer product prices stagnant, rising commodity and price inflation compounds the
problems of retailers. 53% of retailers are experiencing cost inflation, and forecasting further
rising costs.
70% of retailers state that they will have problems in passing on rising input costs to their
customers; and 53% state categorically that they will be unable to do so.
Profit Margins
Price erosion coupled with cost inflation may be depressing retailers profits by 3-12%.
Profitability
40. Retailers are unlikely to recover their profit position in the next 12-36 months.
41. The restoration of pricing levels will take longer that the predictions generally make in the
retail trade.
42. Low customer purchasing power is likely to ensure that prices remain depressed for at least
24 months. After this time, retailers will not have the same price / customer / product mix
which they enjoyed before the recession.
Customers Base
Lacking critical business intelligence, companies have been pricing their way through
recession in the dark. 70% of retailers state that determining a coherent pricing strategy is
very difficult, and 60% state that it is extremely difficult to obtain accurate data on the impact
of pricing on profitability. 50% believe that recession discounting policies have attracted less
profitable customers
60% of retailers state that they do not have accurate data on the impact of pricing on sales
performance and profitability.
45% of retailers state that their company lacks the management tools and right information to
support informed and effective pricing decisions.
55% of retailers state that identifying the most profitable customers presents is difficult as
does identifying the most profitable products or services. Over half of retailers state that they
do not understand what customers require and what is the value proposition they seek.
Two thirds of retailers state that they do not have a consistent and coherent pricing strategy.
Differential Value
Expert and Industry Appraisal of Adams Shoes:
54. Retailers know that in striving to maintain sales volumes, they have been operating in markets
they might not have chosen to play in. 50% of retailers state that they believe that discounting
policies have attracted and retained less profitable customers during the recession.
55. Retailers will produce a tiered pricing structure for different customer segments in the future.
56. Retailers will not be able to focus discounts on their most profitable or highest-spending
customers segments in the future.
57. Retailers face risks in shifting customer demographic focus.
58. Business plans, growth projections and investments are all made on the basis of an accepted
customer demographic, and buying habits.
59. Known customers demographic have known spending patterns and spending power.
60. Retailers who offered discount promotions during the recession need to be careful of how this
may have affected the customer base as they have educated their customers to a price point
and a level of value that they might not be able to maintain.
61. Retailers may not have the ability to spot such a shift, as internal reporting systems are often
too slow to recognise this until it is too late.
62. Many retailers do not know which customers and product lines drive profit.
63. Underlying retailer transactional systems fail to provide the information to accurately calculate
costs to serve.
64. It is often impossible to determine profitability by customer, product or channel.
65. Business intelligence is critical to provide the insight to identify where value is really
generated in an organisation.
66. Retailers need to invest in information gathering; however there is often reluctance to
undertake this because heavy investment in ERP (Enterprising Planning) systems has often
failed to realise the anticipated benefits.
67. The omission of a business intelligence input has meant an inability to capitalise on the data
and business insight ERP can provide.
68. More efficient and accurate cost allocation provides an understanding of true profitability by
customer, product and channel. Retailers can then focus on retaining and growing the
accounts of their most profitable customers and shedding unprofitable product lines.
127
Future Strategies
Retailers understand the need to re-align pricing and are keen to introduce premium priced products
or variable pricing, however there is not a great deal of confidence in being able to execute such
strategies.
65% of retailers state that after a few years there will be a return to premium pricing.
60% of retailers state that discount price offerings will remain important.
70% of retailers state that variable pricing will also form a key part of the pricing mix.
55% of retailers state that they will introduce premium price products and services.
128
1. Confidence that the company will gain additional market share in the industry in the coming 2
years?
a. Very confident
b. Confident
c. Somewhat confident
d. Not sure
e. Somewhat doubtful
f. Doubtful
2. What is the range of your outlets sales volume of company products last year?
i. $250,000 - $499,000
ii. $500,000 - $999,000
iii. $1,000,000 - $2,999,000
iv. $3,000,000 - $4,999,000
v. $5,000,000 - $9,999,000
vi. $10,000,000 - $19,999,000
vii. $20,000,000 or more
3. How long has your outlet been established?
a. 1-5 years
b. 5+ years
4. How much of your business volume is accounted for by this companys own products?
a. 24% or less
b. 25% - 49%
c. 50% - 74%
d. 75% or more
5. How much of your profit is derived from this companys own products?
a. 24% or less
b. 25% - 49%
c. 50% - 74%
d. 75% or more
6. Which of the following company product lines do you fully support at this time?
7. Compared to the market leader, how do your products offer advantages in selling situations?
a. Strong advantage
b. Slight advantage
c. About the same
d. Slight disadvantage
e. Strong disadvantage
8. Compared to the market leader, how do your products offer advantages in profitability?
a. Strong advantage
129
Slight advantage
About the same
Slight disadvantage
Strong disadvantage
9. Compared to the market leader, how do your products offer advantages in service and
supplies business?
a. Strong advantage
b. Slight advantage
c. About the same
d. Slight disadvantage
e. Strong disadvantage
10. Which product line do you see as offering a stronger competitive position to your company?
11. Overall, have actions taken by company senior sales and marketing management over the
past year had an impact one way or another on your business?
a. Very positive impact
b. Positive impact
c. Somewhat positive impact
d. Not sure
e. Somewhat negative impact
f. Negative impact
g. Very negative impact
12. Describe which actions had the greatest impact on your business, and why:
13. Which of the following best describes the influence you feel you have with company senior
management?
a. A lot of influence
b. Some influence
c. Very little influence
d. No influence
14. On average, which of the following best describes company management's timeliness in
response to your requests and inquiries?
a. Very timely
b. Somewhat timely
c. Mixed
d. Somewhat slow
e. Very slow
15. How do you rate your companys operational abilities?
16. Which of the following administrative areas would you say presents the greatest opportunity
for improvement?
a. Order processing
b. Shipping
c. Inventory tracking
d. Billing and credits
17. How do you rate your companys marketing and sales programs?
130
18. Compared with the investment support level in your company business this year, what are the
investment support plans for next year?
a. Greatly increase support
b. Increase support
c. Maintain same level of support
d. Decrease support
e. Greatly decrease support
19. Why did you answered the way you did about your investment support plans for your
company business for next year?
20. What suggestions do you have for company senior management which would help you
improve the success of your company business next year?
21. Overall, I am very satisfied with the way the retailer performed (is performing):
a. Strongly Disagree
b. Somewhat Disagree
c. Neither Agree nor Disagree
d. Somewhat Agree
e. Strongly Agree
22. Sales Personnel are well trained.
23. Sales Personnel are well supervised.
24. Sales Personnel adhere to professional standards of conduct.
25. Sales Personnel act in my best interest.
26. Overall, I am satisfied with the Sales Personnel
a. Strongly Disagree
b. Somewhat
c. Disagree
d. Neither Agree nor Disagree
e. Somewhat Agree
f. Strongly Agree
27. The store senior staff are knowledgeable and professional.
28. The store senior staff are making a positive contribution to customer service.
29. The store senior staff responded to my inquiries in a timely manner.
30. Overall, I am very satisfied with the store senior staff.
31. Compared to how you felt about the retailer before this purchase, what is the likelihood of
completing another purchase with the retailer?
a. Better, based on performance
131
Inventory Control
Product life cycles are shrinking, which adds pressure to get final products into consumers' hands
much faster than before.
With more aggressive competition, keeping inventory lean while still meeting fluctuating demand
patterns becomes critical, and underlines the need for technological solutions to manage inventory
and orders.
Just-in-time inventory
Just-in-time inventory management allows for the reduction of stock and storage costs, but may
increase transportation costs and potentially delivery times. The Speed versus Cost equation is well
known to all retailers and these considerations will particularly impact retailers with seasonal, short
shelf life and trend based products.
Microwave merchandising
The fast-fashion global retailers from Sweden, Spain, the UK and other countries, have dominated the
clothing industry in recent years, by attracting considerable consumer bases, expanding revenues
and expanding aggressively in prime markets in both developed and developing countries. The
success of retailers like Zara, H&M, and others is the quick turnaround times for product ranges and
store displays. This stimulates interest and demand.
These retailers are changing and defining buyer expectations. Consumers are now seeking new
product ranges in 6 to 9 weeks as opposed to 6 to 9 months. Many of these retailers manage the
entire production and distribution process in-house; this reduces risk and ensures an efficient supply
chain.
Those retailers without upstream integration processes must respond with a strategy of smaller orders
distributed amongst a greater pool of suppliers. This however tend to lead to increased unit costs and
therefore the long-term competitiveness of such a strategy is uncertain.
132
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
Inventory optimisation
Supply chain optimisation
Customer service optimisation
Speed to market
Integration of orders into the stock processing schedule
51.
52.
53.
54.
In-house manufacturing
Own private label products
Product availability
Supplier mark-ups
Issues covered with Trade Wholesalers, Brand Managers, Trade Buyers, Retailers, In-store Retail
Negotiators include:
Expert and Industry Appraisal of Adams Shoes:
196.
Retail Management Performance: Person/s Approving / Authorising Order/s
197.
Retail Management: Person/s Deciding What Products / Brands are to be Stocked
198.
Retail Management Performance: Person/s Evaluating Products & Brands Available
199.
Retail Management Performance: Person/s Initiating Decision to Increase Amounts
Purchased / Total Inventory
200.
Retail Management Performance: Person/s Initiating Decision to Introduce New
Products or Brands
201.
Retail Management Performance: Person/s Initiating Decision to Re-Order
202.
Retail Management Performance: Person/s Monitoring Results of Purchases & Sales
203.
Retail Management Performance: Person/s Negotiating Terms with Suppliers
204.
Retail Management: Person/s Preparing Orders / Specifications for Purchases
205.
Retail Management: Person/s Surveying Suppliers & Seeking Quotations
206.
Wholesaler Management Performance: Person/s Approving / Authorising Order/s
207.
Wholesaler Management Performance: Person/s Deciding What Products / Brands
are to be Stocked
208.
Wholesaler Management: Person/s Evaluating Products & Brands Available
209.
Wholesaler Management Performance: Person/s Initiating Decision to Increase
Amounts Purchased / Total Inventory
210.
Wholesaler Management Performance: Person/s Initiating Decision to Introduce New
Products Or Brands
211.
Wholesaler Management Performance: Person/s Initiating Decision to Re-Order
212.
Wholesaler Management: Person/s Monitoring Results of Purchases & Sales
213.
Wholesaler Management Performance: Person/s Negotiating Terms with Suppliers
214.
Wholesaler Management Performance: Person/s Preparing Orders / Specifications
for Purchases
215.
Wholesaler Management: Person/s Surveying Suppliers & Seeking Quotations
216.
Retail Buyers: Attitudes Towards Discount / Own-Brand Products
217.
Retail Buyers: Availability -v- Price Question
218.
Retail Buyers: Buying Patterns
219.
Retail Buyers: Current Purchasing Criteria
220.
Retail Buyers: Frequency of Deliveries
221.
Retail Buyers: Frequency of Purchase/s
222.
Retail Buyers: Method of Payment for Supplies
223.
Retail Buyers: Ordering Procedures
224.
Retail Buyers: Product Reject/Return Rate by Customers
225.
Retail Buyers: Product Reject/Returns Rate at Goods Inwards
226.
Retail Buyers: Product Reject/spoilage Rate Whilst Held in Stock
227.
Retail Buyers: Purchasing Criteria - Future Trends
228.
Retail Buyers: Quality -v- Price Question
229.
Retail Buyers: Reactions to Advertising & Sales Promotion
230.
Retail Buyers: Satisfaction with After-Sales Services Received From Suppliers
231.
Retail Buyers: Satisfaction with Availability of Advertising Support & POS /
Promotional Materials
232.
Retail Buyers: Satisfaction with Availability of Supplies
233.
Retail Buyers: Satisfaction with Deliveries / Frequency & Up-Take
234.
Retail Buyers: Satisfaction with Existing Methods of Supply & Distribution
235.
Retail Buyers: Satisfaction with Existing Products
236.
Retail Buyers: Satisfaction with Existing Suppliers & Sources
237.
Retail Buyers: Satisfaction with Ordering Procedures
238.
Retail Buyers: Satisfaction with Quality & Specifications of Supplies
239.
Retail Buyers: Satisfaction with Suppliers' Stock Levels
240.
Retail Buyers: Satisfaction with Promotional & Advertising Assistance Received
136
245.
Wholesale Buyers: Attitudes Towards Discount / Unbranded / Own-Brand Products
246.
Wholesale Buyers: Availability -v- Price Question
247.
Wholesale Buyers: Buying Patterns
248.
Wholesale Buyers: Current Purchasing Criteria
249.
Wholesale Buyers: Problems with Products
250.
Wholesale Buyers: Sales Promotional Activities Mix
251.
Wholesale Buyers: Sales Promotional Activities to their Retailers
252.
Wholesale Buyers: Delivery / Service Area
253.
Wholesale Buyers: Discounts Offered to Retailers
254.
Wholesale Buyers: Experiences of Product Reject Claims
255.
Wholesale Buyers: Frequency of Deliveries to Retailers
256.
Wholesale Buyers: Frequency of Purchase/s
257.
Wholesale Buyers: Inventory Financing
258.
Wholesale Buyers: Mode of Ordering by Retailers
259.
Wholesale Buyers: Mode of Payment by Retailers
260.
Wholesale Buyers: Number of Competitive Producers Represented
261.
Wholesale Buyers: Producers Sales Promotion Most Influencing Dealers
262.
Wholesale Buyers: Purchasing Criteria - Future Trends
263.
Wholesale Buyers: Quality -v- Price Question
264.
Wholesale Buyers: Retailers Attitude Towards Price -v- Availability
265.
Wholesale Buyers: Sales Call Frequency Per Regular Customer ( Average - Delivery
& Servicing )
266.
Wholesale Buyers: Satisfaction with After-Sales Services Received From Suppliers
267.
Wholesale Buyers: Satisfaction with Availability of Advertising Support & POS /
Promotional Materials
268.
Wholesale Buyers: Satisfaction with Availability of Supplies
269.
Wholesale Buyers: Satisfaction with Documentation / Instructions
270.
Wholesale Buyers: Satisfaction with Existing Methods of Supply & Distribution
271.
Wholesale Buyers: Satisfaction with Existing Products & Product Ranges
272.
Wholesale Buyers: Satisfaction with Existing Suppliers & Sources
273.
Wholesale Buyers: Satisfaction with Own Stock Levels
274.
Wholesale Buyers: Satisfaction with Producers Ability to Fulfil Orders On Time
275.
Wholesale Buyers: Satisfaction with Producers Credit & Other Financial Details
276.
Wholesale Buyers: Satisfaction with Producers Delivery Frequency & Up-Take
277.
Wholesale Buyers: Satisfaction with Producers Ordering Procedures & Formalities
278.
Wholesale Buyers: Satisfaction with Producers Stock Levels
279.
Wholesale Buyers: Satisfaction with Producers Terms of Trading
280.
Wholesale Buyers: Satisfaction with Quality & Specifications of Supplies
281.
Wholesale Buyers: Satisfaction with Quality of Supplies Received
282.
Wholesale Buyers: Satisfaction with Promotional & Advertising Assistance Received
283.
Wholesale Buyers: Supplier Loyalty
137
284.
285.
Performance comparisons according to date /week / hour / day of the week / period
286.
Site or data comparisons for key performance indicators e.g. sales conversion
287.
Contextual information relevant for evaluating performance e.g. weather and events
288.
Data should be predefined, scheduled and distributed according to the requirements
of the managers concerned.
138
300.
301.
302.
303.
304.
305.
Stores that are over-trading and can be moved to larger units with lower costs due to
economies of scale
306.
Stores which are under-trading and require action can be taken to mitigate the
situation
139
Technology Usage
The use of communications technology by consumers, and the evolution of diverse retail channels
require that retailers be able to sell and deliver wherever the customer is located. Consumers expect
a wider variety of products from a single source and better product value without any loss in product
or service quality. To enable retailers to adequately compete they need to capture and utilise the
necessary business data:
Expert and Industry Appraisal of Adams Shoes:
as an Excel Part_K
307.
308.
309.
310.
311.
312.
313.
314.
315.
316.
317.
318.
319.
Technological investment
Point of sale terminal data gathering
Online sales data gathering
Supply chain data
Site level of inventory
Distribution centre inventory
Social media integration
Search engine integration
Targeted web page advertising
Web identification and activity tracking
Consumer targeting
Target demographic surveillance
Online advertising calibration
320.
321.
322.
323.
324.
325.
326.
327.
328.
a.
b.
c.
d.
e.
f.
g.
Retail channels:
in store
catalogue/call centre
traditional web
mobile web
social media
digital signage
kiosks
a.
b.
c.
d.
e.
f.
g.
a.
b.
c.
d.
Retailer systems:
Retailers POS and e-commerce data management
Social and mobile initiatives
Real-time visibility across the entire supply chain
Retail site technology, handheld tablets and kiosks
329.
330.
140
331.
332.
333.
334.
335.
336.
337.
338.
339.
340.
Staffing capacity
Store layout
Orders processing and fulfilment
341.
342.
343.
344.
345.
346.
347.
348.
349.
Inventory pooling
Safety stock levels
Stock space
353.
354.
355.
356.
357.
358.
Picking tactics
Labour intensity & costs
Order fulfilment strategies
Order fulfilment technologies
Optimisation of space
Handling Equipment Capital Costs
359.
360.
361.
362.
363.
364.
365.
366.
367.
Put systems
Cart batching
Racking, shelving & carousels
Automated storage and retrieval systems (AS/RS or sorters)
Sorter units
368.
369.
370.
371.
372.
Showrooming
Future retail strategies include the use of retail stores more as showrooms or giant catalogues for
consumers to feel and touch the product.
Traditional retailers were compromised when Amazon released a price-checking app that allowed
users to scan barcodes in rival stores and check for cheaper prices online. What this means is that
any retailer providing a showroom may be doing so for the benefit of a third party online merchant.
Retailers have made enormous long-term capital investments creating distribution centres which
move crates and pallets to stores. Now however they must develop distribution networks capable of
getting single items to the customers door. Amazon is the leader in this field, using site selection,
automation and tax strategy to deliver pricing and delivery service that is challenging the traditional
retail traders. In the futuristic distribution centres of its subsidiary, Zappos, order picking is handled by
robots. The robots enable Amazon to turn off the lights and forget about air conditioning in a large
portion of its enabled distribution centres. It allows them to employ a fraction of workers in what was a
traditionally labour-intensive operation.
Amazon acquired the maker of these robots, Kiva Systems, and will likely automate a great deal more
of its operations in the future. In the meantime, Amazon continues to build distribution centres faster
than anyone else.
While most distribution centres do not have the robotic labour, they are still a blend of high technology
and a lot of manual labour. The 2,000 workers in Amazons 1-million-square-foot Chattanooga,
Tennessee facility are connected by about seven miles of fibre and 700 internet access points.
Amazon invested in a mezzanine level for this facility; and that will nearly double the floor space. With
so much investment and such specific facility requirements it is clear why Amazon has gone the buildto-suit route. Between its two existing facilities in Tennessee, Amazon has spent over $140 million.
Due to the material handling needs, each centre processes a different type of goods. The
Chattanooga centre is set up to handle mostly smaller items, while the Cleveland, Tennessee site
handles large items like televisions. Amazon is adding two more sites in Tennessee for an additional
investment of $150 million.
142
Showrooming strategies
Unique products or bundles that are not for sale elsewhere
Co-operation with manufacturers to release products earlier than competitors
Price matching with online offerings
Build relationships with consumers
Boosting consumer loyalty
Encouraging product recommendations
Special deals for loyal consumers
Providing information
Providing exceptional service
Creating interactive environments for consumers
Of course it is not only Amazon investing in advanced automated materials handling and distribution
centres, retailers from all sectors have little alternative but to invest in such facilities in order to
compete in terms of both operating margins and customer service. These distribution centres also
demonstrate the trend towards larger facilities which allow economies of scale and operational time
efficiencies.
384.
385.
386.
387.
388.
389.
390.
391.
392.
393.
394.
395.
396.
397.
398.
399.
400.
401.
402.
403.
404.
405.
406.
407.
408.
144
Part L : Strategies
This data is available on a Corporate basis for Adams Shoes
Retailers must fully analyse the strategy of retailing from each perspective of a strategic methodology
which has to plan for and adapt to a complex, changing environment. Both opportunities and threats
must be considered. By engaging in strategic retail management, the retailer is encouraged to study
competitors, suppliers, economic factors, consumer changes, marketplace trends, legal restrictions,
and other elements. A retailer prospers if its competitive strengths match the opportunities in the
environment, weaknesses are eliminated or minimised, and plans look to the future (as well as the
past).
Building relationships
Ownership and store mix
E-commerce, non-store and non-traditional retailing formats
Consumer behaviour and information gathering
Store locations
Managing the business
Planning, handling, and pricing merchandise
Communicating with the customer
Integrating, analysing, and improving strategic planning
Trans-international retailing
Franchising
The point of sale is becoming increasingly important for two reasons. Firstly because the consumer
media environment is becoming more fragmented making it more difficult to reach shoppers with
traditional tactics; and secondly, because retailers are getting stronger, smarter and better at
marketing.
The power that used to rest almost entirely with the national brand marketers who used advertising to
direct people to the stores to demand their products is shifting to the retailer. The advertising industry
has taken its eye off the ball by not understanding the importance of distribution-channel management
and thereby the brand owners have suffered.
In turn, there is no doubt that the adage change or die will define the retailing sectors in the
immediate future. Whether individual retailer die will depend on if they change.
The change is often simply the ability to provide a multichannel sales environment to ones
customers.
It is not that physical retail sites are dead, physical locations allow shoppers to touch and feel
products. In certain retail sectors this is essential. Retail outlets have real people who can provide the
kind of personal advice and service thats essential to certain product sales. These attributes can be
harnessed and used to provide consumers with a real shopping experience.
For retailers to address the challenges of the future they need to embrace their customers
preferences and expectations.
145
Data Mining
The enormous availability of data allows retailers not only to identifying segments, but also to target
micro-segments based on patterns in individual consumers research and purchase behaviour. This
kind of analysis enables a stronger relationship with customers as the data specificity allows retailers
to cater to specific needs and wants.
This approach can help develop offers tailored to the individual and target underserved consumer
segments, with distinct marketing and product offerings. Some retailers have developed micro-sites
targeted at specific consumer segments.
Bespoke Service
While technology has allowed for more sophisticated targeting, it is important to remember that
consumers shop at stores for the Store Experience and contact with a real person.
Retailers offering personal shoppers across multiple channels can bring a valuable store experience
that is supported by just-in-time data. Some retailers enhance the bespoke service with a phone app
that identifies when customers enter the store and prompts staff to engage with the customer armed
with that customers purchase history and preferences.
An important part of making personal contact with customers is by creating familiar neighbourhood
connections. Various mobile apps offer local businesses innovative ways to use product offers that
encourage shoppers into their stores, and then keep them coming back with further offers, events and
promotions.
146
Collaboration
Retailers need to find new partners and collaborators to get the capabilities, expertise, and access to
customer bases that they cannot easily develop on their own. Cross-retailer loyalty schemes help
create the same multi-category loyalty experience that Amazon has created through their Prime
offer. Retailers can look to promote products and services across the on- and offline worlds through
personal one-to-one marketing delivering email and text offers to mobile phones. This can be
triggered when the consumer is in the neighbourhood of one of the retailers stores.
Uniqueness
Brand images are becoming depreciated and consumers perceive even the prime brands as being
commonplace. This has led to a reduction in the price premiums previous expected by brand retailers.
Retailers need to develop unique products, with fresh brands and innovative presentation and
promotion. Exclusive lines of merchandise, private label offerings, and celebrity endorsed collections
help to differentiate one retailer from another.
Market Leadership
Store retailers can move into new, untapped markets where competitors do not have a foothold or do
not have an adequate product offering. Highly fragmented markets attract online suppliers, and here
there are opportunities to bring a lot of buyers and sellers together. The developing Asian and other
markets are extremely attractive in this respect.
Multichannel retailers need to perfect the digital shopping experience; customers increasingly demand
a trouble-free and effortless interaction with retailers. The ability of retailers to turn physical stores into
profit centres will determine if they are able to prosper or become another victim of the irresistible
digital revolution.
147
Challenging economic conditions are impacting on the retail sector across the world and underlying
problems need to be addressed.
Not only does rising inflation diminish discretionary spend, but spending patterns and product demand
is also evolving and retailers may not have the necessary resources to survive these changing
circumstances.
Retailers need to critically analyse their internal organisation to confirm that they have the basics:
Expert and Industry Appraisal of Adams Shoes:
10.
11.
12.
13.
14.
15.
a clear strategy;
experienced retail business specialists in charge;
understand the key drivers for the business;
the right retail offering;
tested business model;
plans for future development.
Operating Strategies
Retailers that expanded when easy capital was available and the economy was growing are now
struggling because they neglected to develop a strategic business plan incorporating different
economic scenarios. Even those business managers who did plan for uncertainty may not have
incorporated all the variables and scenarios which have been experienced recently. Few managers
could have foreseen such a dramatic change in consumer purchasing behaviour, economic instability
and challenging market conditions.
Whilst there exists economic uncertain in many markets, and despite the fact that many businesses
have taken steps to ensure their survival, there is still ambiguity in profitability forecasts.
Understanding the underlying operational and market factors allow the development of a competitive
and sustainable strategy. Business plans and projections, investments decisions, and future
strategies are all made on the basis of a known customer demographic and fully understood
customers purchasing behaviours. When customer demographic, spending patterns, spending levels,
and product preferences change, then the consequences always impact on profitability. Knowing
which factors are controllable, and those which are not, is critical to survival.
148
16.
17.
18.
19.
20.
21.
22.
Business planning
Research and understand customer base dynamics.
Evaluate competitors and competitive strategies.
Adapt to the evolving needs of customers.
Critically view pricing strategy.
Clarify and secure buying channels.
Ensure that managers are able to properly execute the business plan.
23.
24.
25.
26.
27.
28.
29.
Cost efficiencies
Reducing costs,
Negotiating better input prices and supply sources,
Developing supply chain efficiencies,
Researching innovative products which cost less to produce,
Developing business models with variable scenarios,
Increasing margins.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
Market Pricing
Consumers pricing propensity research
Competitive pricing benchmarks
Input costs and scenarios
Inflation
Review of pricing strategy variables
Dynamic Product Pricing
Review of sustainability of discounted prices
Pricing baseline for consumers
Short, Medium, and Long term pricing strategies for product groups
48.
49.
50.
51.
52.
Cash management
Optimising cash management is the key to retail management in the present economic conditions.
Maximising cash flow and working capital by strict budgeting and benchmarking should be the focus
for all managers. The maintenance of sufficient cash balances and the identification of unforeseen
calls on cash together with specific and timely plans for corrective actions must be a fundamental
goal.
Expert and Industry Appraisal of Adams Shoes:
67.
68.
69.
70.
71.
72.
73.
74.
75.
Retailing Operations
Operational efficiencies, continual systems improvement, better customer service, exceeding
customer expectations, are the focus points for all retailers.
Payment options
Ease of purchase
Transaction speed
Product delivery
150
Research collection
Product offerings
Merchandising & POS
Service levels
Value engineering
Product size variations
Product quality options
Integrated communications
Promotional planning
Transparency
Customer confidence
Financial Planning
Indirect taxation is frequently a retailers third largest burden on cashflow and as such, has a major
influence on the company's operation and financial performance. Retailers are now more able to use
multi-channel selling and distribution, and transfer pricing mechanisms, to optimise both cashflow and
retail prices. The use of distribution from lower cost sales or value added tax jurisdictions may provide
significant opportunities to improve margins and cash management.
Expert and Industry Appraisal of Adams Shoes:
91.
92.
93.
94.
95.
96.
Data management
Effective data management and its use as a vital resource can greatly assist retailers. In conjunction
with this is the absolute need for data security. Recent breaches in data security at high profile
retailers have highlighted the importance of adequate protection of customer data. The retail sector is
particularly vulnerable to cyber-attack, considering the huge amount of customer data held from
online shopping, loyalty schemes and other marketing incentives. Adverse publicity about stolen data
will damage reputations and potentially could damage sales revenues.
Expert and Industry Appraisal of Adams Shoes:
Logistic operations
Warehousing & distribution
Inventory control systems
Ethical sourcing
Sustainable procurement
Supply chain perspectives
Sustainability strategy
151
Controls
Many recent corporate failures were as a result of ineffective control on stock, cash and management
information. Know what is happening in the business on a day-to-day basis through the right
management information and act on it before its too late.
Expert and Industry Appraisal of Adams Shoes:
112.
113.
114.
115.
116.
117.
118.
119.
120.
121.
122.
123.
Retail controls
Key retail indicators
Customer requirements
Customer preferences
Product offering adjustments
Stock selection
Selling space allocation
Cash controls of working capital
Debtor & Creditor days
Invoice discounting
Supplier & procurement alternatives
Contingency plans & systems
Stakeholder Management
A companys strategic plans should include mechanisms to support, and in turn retain the support of,
key stakeholders; especially in tough economic times, when support from stakeholders, from
investors to creditors are critical. Ideally one maintains a dialogue with all the stakeholders, and the
more adept one is in this respect the more one is likely to succeed in the long term.
Expert and Industry Appraisal of Adams Shoes:
124.
125.
126.
127.
128.
129.
130.
131.
132.
133.
134.
135.
Shareholders
Bankers
Landlords
Suppliers
Trade Creditors
Insurers
Financial services providers
Tax authorities
Regulators authorities
Employee relations
Public Relations
Customer communications
Value Preservation
Retailer financial health will range from intensive care in an effort to turn the business around, to
stable good health, to vigorous and expansive acquisition activity. However, whatever the health of
the company, the key driver will be the preservation of value.
The current economic circumstances have seen some failures and much stagnation which
encourages restructuring to decrease costs or increase margins. Albeit there are also a number of
retailers for whom this period will provide an opportunity to expand their business through M & A.
152
153
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Target Markets
Customer Needs
Retail Formats
Method for Satisfying Needs
Bases for Building Sustainable Competitive Advantage
Defending Position Against Competitors
Methods for Segmenting Markets
Buying Situations
Benefits Sought by Customers
Customers Demographics
Customers Location & Geographic
Customers Lifestyle
Customers Psychographics
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
Supplier Relationships:
Low Cost
Efficiency Through Coordination
Electronic Data Interchange (EDI)
Collaborative Planning and Forecasting to Reduce Inventory and Distribution Costs
154
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
Growth Opportunities:
Market Penetration
Market Expansion
Retail Format Development
Diversification
Related vs. Unrelated markets
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
Market Factors:
Size
Growth
Seasonality
Business cycles
82.
83.
84.
85.
86.
Competitive Factors:
Barriers to entry
Bargaining power of vendors
Competitive rivalry
Threat of superior new formats
87.
88.
89.
90.
91.
Environmental Factors:
Technology
Economic
Regulatory
Social
113.
114.
115.
116.
117.
118.
Retailing Concept:
Customer Orientation
Value-drivers
Coordinated Effort
Goal-Oriented
119.
120.
121.
122.
123.
124.
125.
Relationship Retailing:
Seek long-term relationships with customers
Focus on customer satisfaction over time
Satisfaction through meeting or exceeding customer expectations
Customer Equality
Customer Value
Core Customers identification
126.
127.
128.
129.
130.
131.
132.
133.
134.
135.
136.
137.
138.
139.
140.
141.
142.
143.
144.
145.
146.
147.
156
152.
153.
154.
155.
156.
157.
Sustainable Factors:
Price
Location
Vendor relations
MIS-technology
Low cost operations
158.
159.
160.
161.
162.
163.
164.
165.
166.
167.
168.
169.
170.
171.
172.
173.
174.
175.
176.
177.
178.
179.
180.
181.
182.
183.
184. When challenged by a competitor with a differential advantage, the established retailer will
adopt strategies and tactics in the direction of that advantage (making the innovator less
attractive)
185.
186.
187.
188.
189.
190.
191.
192.
193.
Lower costs
MIS technology
Lower prices
Re-evaluate operational practices and service
Value delivery
Decline
158
3.
Determine how to differentiate itself from competitors and develop an offering that appeals
to each customer segment
4.
5.
6.
7. Retailing objectives
8. Building and Sustaining the Retailing Relationships
9. Strategic Planning in Retailing
10. Situation Analysis:
a. Capital requirements
b. Store-Based Strategy Mix
c. Web, Non-store-based, and other forms of multi-channel trading
11. Targeting Customers and Information Gathering:
a. Identifying and Understanding Consumers
b. Information Gathering and Processing
12. Store Locations:
a. Trading Area Analysis
b. Site Selection
13. Managing the Business:
a. Organisation and Human Resource Management
b. Operations Management: Financial
c. Operations Management: Operational
14. Merchandise Management and Pricing:
a. Developing Merchandise Plans
b. Implementing Merchandise Plans
c. Financial Merchandise Management
d. Pricing
15. Communicating with the Customer
a. Establishing and Maintaining a Retail Image
b. Promotional Strategy
16. Integrating and Controlling the Retail Strategy
159
Situation Analysis
Expert and Industry Appraisal of Adams Shoes:
Situation analysis is an honest evaluation of the opportunities and threats facing the retailer:
17.
Organisational Mission
Expert and Industry Appraisal of Adams Shoes:
The organisational mission is the retailers commitment to a type of business and to a distinctive role
in the marketplace.
31.
32.
33.
34.
35.
36.
37.
38.
39.
160
Goods/Service Categories
The strategic plan is centred on the selection of goods/service categories, the lines of business, in
which the retailer operates.
Expert and Industry Appraisal of Adams Shoes:
41.
42.
43.
44.
Type of business
Management abilities
Financial resources
Time constraints
Management Abilities
Management abilities depend on the aptitudes of the managers:
Expert and Industry Appraisal of Adams Shoes:
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
161
Financial Resources
Adequate projection of the financial resources needed is essential to the retailer.
Expert and Industry Appraisal of Adams Shoes:
55.
56.
57.
58.
59.
60.
61.
62.
63.
Time Constraints
Time constraints on managers differ significantly by goods or service category:
Expert and Industry Appraisal of Adams Shoes:
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
Automation of operations
Outsourcing of activities
Managing time-pressed customers
Store opening hours & shift patterns
Seasonal market factors
Self-service
Standardisation of operations
Formalisation of financial controls
Key service providers time constraints
Delegating of work to back-office operations
Levels of personal services
Staff shortages due to costs
Cash controls
Off-hours activities
a. Cleaning
b. Stocking shelves
c. Financial reconciliation
Objectives
The situation analysis leads to how the retailer sets objectives for the long-term and short-terms
performance targets required.
Expert and Industry Appraisal of Adams Shoes:
Sales
Profit
Satisfaction of stakeholders
Image
Increasing comparable store sales
Gross margins
Return on investment
Earnings per share
162
Sales
Sales objectives are related to the volume of goods and services a retailer sells and includes:
Expert and Industry Appraisal of Adams Shoes:
Short-term profits
Opening new units
Maintaining sales volume
Maintaining market share
Maintaining price lines
Market share by category sales
95.
96.
97.
98.
Profit
With profitability objectives the retailer will seek a minimum profit level during a designated period.
Expert and Industry Appraisal of Adams Shoes:
Satisfaction of Stakeholders
Retailers typically strive to satisfy their stakeholders: shareholders, customers, suppliers, employees,
and regulators.
Expert and Industry Appraisal of Adams Shoes:
102.
Shareholder satisfaction
a. Short-run
b. Long-run
c. Stable dividends
103.
Customer satisfaction
a. Criticism
b. Adaption
104.
a.
b.
c.
d.
e.
105.
Supplier relations
Favourable purchase terms
New products
Good return policies
Shipments
Cooperation
Labour relations
a. Absenteeism
163
Regulatory relations
Image Positioning
Image positioning is how the retailer wished to, and possibly is, perceived by consumers and others.
Expert and Industry Appraisal of Adams Shoes:
107.
108.
109.
110.
111.
112.
113.
Innovative
Conservative
Radical
Specialised
Broad-based
Discount-oriented
Upscale
114.
115.
116.
117.
118.
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
Mass merchandising
Discount or value-oriented image
Wide and/or deep merchandise selection
Large store facilities
Low operating costs & stores
Economy outlets
Value-conscious shoppers
Popularity
Broad customer base
High customer traffic
High stock turnover
a.
b.
c.
d.
e.
f.
g.
119.
120.
121.
a.
b.
c.
d.
e.
164
Selection of Objectives
Clearly set goals and a strategy to achieve:
Expert and Industry Appraisal of Adams Shoes:
122.
123.
124.
125.
126.
127.
128.
129.
130.
131.
132.
133.
134.
Checklist
Expert and Industry Appraisal of Adams Shoes:
135.
136.
137.
138.
139.
140.
141.
142.
143.
144.
145.
146.
147.
148.
149.
150.
151.
Capital investment
Goodwill
Sales
Inventory levels
Profits
Customer base
Sales seasonality
Debts
Property
Storefronts
Store fixtures
Merchandise assortment
Advertising policy
Customer service policy
Pricing policy
Units & locations
Trading area overlaps of stores
165
Overall Strategy
Expert and Industry Appraisal of Adams Shoes:
controllable variables (the aspects of business the retailer can directly affect)
uncontrollable variables (those to which the retailer must adapt)
Controllable Variables
Expert and Industry Appraisal of Adams Shoes:
171.
172.
173.
174.
175.
Store location
Managing the business
Merchandise management
Pricing
Communicating with the customer
166
Store Location
Expert and Industry Appraisal of Adams Shoes:
176.
177.
178.
179.
180.
181.
182.
183.
184.
Retail organisation
Human resource management
Operations management
Task management
Defined policies
Resources management
Authority delegation
Managers responsibility
Managers rewards
Employee hiring
Employee training
Employee compensation
Employee supervision
Human resource management techniques
Job functions
Employee responsibility
Chain of command
Satisfaction of customers
Satisfaction of employees
Fulfilment of management goals
Asset management
Budgeting
Resource allocation
Store format and sizes
Store personnel use
Store maintenance
Energy management
Store security
Insurance
Credit management
Computerisation
Crisis management
167
Image creation
Image maintenance
Influence on consumer perceptions
Storefront
Store layouts and displays, floor colours, lighting, scents, music
Store sales personnel
Community relations
Advertising campaigns
Personal selling
Sales promotion
Publicity campaigns
Uncontrollable Variables
Expert and Industry Appraisal of Adams Shoes:
245.
246.
247.
248.
249.
250.
Consumers
Competition
Technology
Economic conditions
Seasonality
Legal restrictions
168
Consumers
Expert and Industry Appraisal of Adams Shoes:
251.
252.
253.
254.
255.
Demographic trends
Lifestyle patterns
Tastes
Consumer trends and desires
Price range of customer purchases
Competition
Expert and Industry Appraisal of Adams Shoes:
256.
257.
258.
259.
260.
Entry of competitors
New or established competitors
Competitors target markets
Competitors merchandising focus
Competitive edge
Technology
Expert and Industry Appraisal of Adams Shoes:
261.
262.
263.
264.
265.
266.
267.
Computer systems
Inventory control
Checkout operations.
Warehouse
Transport of merchandise
Consumer ordering
Online activities
Economic Conditions
Expert and Industry Appraisal of Adams Shoes:
268.
269.
270.
271.
272.
273.
274.
275.
276.
Unemployment
Interest rates
Inflation
Tax levels
Annual gross domestic product (GDP) growth
Economic factors
International economic factors
National economic factors
Provincial & local economic factors
169
Seasonality
Expert and Industry Appraisal of Adams Shoes:
277.
278.
279.
Seasonality
Weather
Cycle of demand
Legal Restrictions
Expert and Industry Appraisal of Adams Shoes:
280.
281.
282.
283.
284.
285.
286.
287.
288.
289.
Coordinated approach
290.
Consistent approach
291.
Integrated strategy
292.
171
Tactical Decisions
Tactical or Short-run decisions for each controllable part of the strategy:
Expert and Industry Appraisal of Adams Shoes:
321.
Store locations and trading-area analysis which gauges the area from which
customers are drawn.
322.
323.
324.
325.
326.
327.
328.
329.
Operations systemisation.
330.
331.
332.
333.
334.
335.
336.
337.
Adaptive actions to respond to higher supplier prices and react to competitors prices.
338.
339.
340.
341.
342.
343.
New products.
344.
345.
Advertising placed during the proper time and in the proper media.
346.
172
Controls
Expert and Industry Appraisal of Adams Shoes:
347.
348.
Retail audits
349.
350.
351.
Feedback
Expert and Industry Appraisal of Adams Shoes:
352.
353.
354.
173
Economic Conditions
The current economic conditions are not encouraging to retailers. It is normal in bad economic times
that the small retailers suffer, usually disproportionately, however there is also evidence that the
largest of retailer group are also suffering.
The factors which are effecting the economy also include rising commodity prices, rising product
prices, lower disposable incomes, lower savings rates, declining consumer spending, a housing
slowdown, and rising unemployment. All of these indicators guarantee that the period of strong retail
expansion and increasing profit margins and over for the foreseeable future. Retail is of course the
final link in the supply chain and as demand weakens the effects will ripple through the supply chain,
the logistic providers, and the manufacturing base.
The impact on manufacturing, distribution, and employment in other industries may endure for far
longer than the events that actually triggered the economic decline. As economic forces slow or stop
altogether, retail demand further weakens thus exacerbating the decline. In the end, the retail industry
as a whole is severely affected and here the losers will outnumber the winners.
Forecasts for retail are negative and it is probable that the retail sectors will not even meet the
lowered expectations of recent government forecasts.
Retailers will have to change their business planning and business models to survive in the long term.
Consumers felt wealthier and they spent more, thereby fuelling the expansion of consumption, which
in turn simultaneous stimulated the growth and inflation in the housing market. At the start of the
demand growth stage, consumers paid off credit card debt accumulated in the previous periods by
refinancing their homes. Unfortunately, real incomes did not rising during this period and many
consumers smoothed their new wealthier consumption levels with more credit card debt. Many
households refinanced their homes more than once during this expansion, only to be faced with the
reality of the situation when home prices did cannot continue to increase at the same rate and the
equity in the home did not have the same liquidity as traditional savings.
Consumers are not at a stage where they have liquidated much of their savings, and are unable to
obtain credit, and therefore must sustain a lower level of spending and accept a reduced standard of
living. This response to economic times entrenches the downturn, and increases its duration.
Whereas Consumption Smoothing explains the fundamental choices behind savings and spending for
the consumer, it does not explain their specific spending decisions. During a recession, the typical
consumer is forced to make difficult decisions and economic trade-offs. In terms of consumption these
choices are often manifested as substitution between goods.
When budgets are constrained, the typical consumer will substitute down or choose inferior products.
Consumers will replace an expensive branded food item with a less expensive or own-brand food
item.
This trading down is a type of consumption smoothing allowing the consumer to get the same level of
consumption but at a lesser quality per unit. This theory of product substitution holds when there are
inferior products to trade down to and they are reasonably product substitutes for the more expensive
product. This process is frequently seen is the consumers choice of where to shop. While most
retailers are experiencing sales declines, discount retailers are thriving as people trade down from
expensive specialty and department stores to shop at discount and wholesale stores. These trends
have great impacts on a retailers strategy to survive a recession or downturn.
7.
8.
9.
10.
176
Staff Costs
Audit of Retailer Economic Strategy by Expert Appraisal:
Expert and Industry Appraisal of Adams Shoes:
20.
21.
22.
23.
24.
25.
26.
27.
28.
177
Checklist
Expert and Industry Appraisal of Adams Shoes:
29.
30.
31.
32.
178
1. The retailer must offer a competitively superior product as defined by local consumers.
2.
The retailer must develop superior economics across the value chain that delivers the
product to the local consumer.
3.
15.
16.
17.
18.
19.
Foreign markets represent good growth opportunities when domestic markets are saturated
or stagnant.
20.
The retailer is able to offer goods, services, or technology not yet available in foreign
markets.
21.
22.
23.
24.
Communications is easier. Online activities enable the retailer to reach customers and
suppliers outside the domestic markets.
Threats
Expert and Industry Appraisal of Adams Shoes:
Standardisation
Expert and Industry Appraisal of Adams Shoes:
180
39.
Timing:
a. First to the market
b. Wrong-foot competitors with innovative products or systems
40. Balanced international program:
a. National market selection
41. Growing middle class:
b. Expandable income
c. Propensity to consumer new product offerings
42. Matching concept to market:
a. Developed markets
b. Quality offering
c. Style & fashion
d. Specialty operations
e. Developing markets
f. Discount / combination merchandise
g. Price
h. Assortment
i. Value
j. Convenience
Developed Markets
Expert and Industry Appraisal of Adams Shoes:
43.
44.
Issues:
a. Increasing competition, deteriorating margins, and saturation
b. Consolidation and rationalisation (cost cutting), forcing poor performers out of the
market
c. New enabling technologies
d. Demanding customers
e. Limited growth
Implications:
a. Retailers must focus on maximising operational efficiencies, vendor relationships,
infrastructure, and technology
b. For growth, large retailers are expanding regionally and then globally into developed
or developing markets
Developing Markets
Expert and Industry Appraisal of Adams Shoes:
45.
46.
Issues:
a. Minimal purchasing power per capita, yet strong economic growth, pent-up demand
b. Huge customer base, representing up to 70% of the worlds population
c. Infrastructure issues, transportation, communication, etc., may pose problems
d. Disorganised, fragmented retail structures that are vulnerable to new entrants
e. The number of indigenous large retailers is small to none
f. Strong protectionist measures may exist
Implications:
a. Tremendous opportunity for large retailers, limited competition, huge growth potential
b. Initial entry may need to be through intermediary, joint venture, etc.
181
182
Three factors in retailing are of particular relevance to businesses and each factor imposes unique
requirements on retailers.
The average value of sales transaction per shopping trip is substantially less than US$100 for
department stores, specialty stores, and supermarkets. This modest level of income per customer visit
creates a need:
1. To tightly control the costs associated with each transaction (for example, payment card
costs, sales personnel, bagging, et cetera)
2. To maximise the number of customers drawn to the retailer
3. To ensure marketing expenditure is effective
4. To ensure that sales are augmented through promotions
5. To increase impulse sales by more aggressive selling
6. To keep operational costs in control
7. To automated and systemise inventory management
8. To ensure proper in-stock levels
9. To ensure proper product selection
10. To computerised inventory systems, stock control and stock ordering
18. Definition of the type of business in terms of the goods or service categories and the specific
company orientation (such as full service or no frills).
19. Setting long-term and short- term objectives for sales & profit, market share, image, et cetera.
20. Determination of the customer sectors to target on the basis of their characteristics (such as
gender and income level) and needs (such as product and brand preferences).
21. An overall, long- term plan that gives general direction to the company and its employees.
22. Implementation of an integrated strategy that combines such factors as store locations,
product assortment, pricing, and advertising and displays to achieve objectives.
23. Evaluation of performance on scheduled basic.
24. Formalised mechanisms to correct weaknesses or problems when identified.
Multi-format
Diversity of the customer base
Diversity and range of retail formats
Distinctive image
Innovation
Innovative products and services
Controlled labels
Speciality products
Sub-brands
In-store or on-site subsidiary products & services
42.
43.
44.
45.
46.
47.
Commitment to technology
Technology planning
Distribution channel technologies
Loyalty programs
Financial operations
Data mining
184
59. Customer orientation which determines the attributes and needs of customers and
endeavours to satisfy these needs to the fullest.
60. Coordinated effort which integrates all plans and activities to maximise efficiency.
61. Value-driven focus which offers good value to customers, whether it be upscale or discount.
This means having prices appropriate for the level of products and customer service.
62. Goal orientation which sets goals and then uses its strategy to attain them:
a. Clear concept of customer needs
b. Precise planning
c. Prices that reflect the value offered
d. Feedback from customers
e. Communicating with shoppers
f. Placing shoppers desires at the heart of the companys success
g. Consistent strategies (brands, plentiful sales personnel, attractive displays, and
above-average prices for a quality service)
h. Offering prices perceived as fair and good value for the money
i. Development of the total retail experience
j. Development of customer service
k. Development of relationship retailing
185
Appearance
Cleanliness
Convenience
Store ambience
Relaxed and comfortable
Good place to spend time and browse
The total retail experience includes all the elements in a retail offering that encourage or inhibit
consumers during their contact with a retailer. Many elements (for example, number of salespeople,
displays, prices, brands, and stocks) are controllable by a retailer; whereas other elements (for
example, adequacy of on-street parking and sales taxes) are not. If some part of the total retail
experience is unsatisfactory, consumers may not make a purchase, they may even decide not to
patronise a retailer again.
In planning strategy, the retailer must ensure that all strategic elements are in place for each of the
consumer segments they are targeting; with a total retail experience aimed at fulfilling each segments
expectations.
Customer Service
Customer service refers to the identifiable, but sometimes intangible, activities undertaken by a
retailer in conjunction with the basic goods and services it sells. It has a strong impact on the total
retail experience. Among the factors composing a customer service strategy are store hours, parking,
shopper-friendliness of the store layout, credit acceptance, salespeople, such amenities as gift
wrapping, rest rooms, employee politeness, delivery policies, the time shoppers spend in checkout
lines, customer follow-up, and so forth.
Satisfaction with customer service is affected by expectations (based on the type of retailer) and past
experience, and shoppers assessment of customer service depends on their perceptions, not
necessarily reality. Different people may evaluate the same service quite differently.
The same person may even rate a retailers customer service differently at a different time, or in a
different location, because of its intangibility, though the service stays constant. Service varies widely
from one retailer to the next, and from one shopping channel to the next. The challenge for retailers is
to ask shoppers what they expect in the way of service, listen to what they say, and then make every
attempt to satisfy them.
Unfortunately, the customer is not always right. Just as retailers know they can never underestimate
the taste or intelligence of their customers, so too they can never overestimate the propensity of some
of their customers to engage in sharp practice. Of course, just as hotels cost into their pricing the fact
that some of their customers will steal the towels, so too those retailers whom offer a liberal refund
policy cost into their pricing the returns. Whereas in good times retail purchase return may be 4-6%, in
bad times this increases to 5-8%; and this has an even greater impact because retailers are already
suffering from a reduction in sales, margins and profits.
Clearly retailers must think very seriously about the balance of good customer service and excessive
pandering to customers.
186
Relationship Retailing
Retailers have the best possible motive to engage in relationship retailing, whereby they seek to
establish and maintain long-term bonds with customers, rather than act as if each sales transaction is
a completely new encounter. The motive for adopting such relationships is of course that it is more
profitable for the retailer.
Customisation of product offering. No more one size fits all. Retailers must adopt a more
robust portfolio approach to the market to appeal to the multi-channel consumer mind-set.
95.
Market power of the Majors. All retailers must come to terms that the majors are here to
stay and that they will continue to dominate almost every national market in the world.
96.
Supercentres are here to stay because they are merely the reflection of consumer choice.
97.
Speciality Retailers have to develop concepts to both work with supercentres and to offer
alternatives to the supercentres.
187
Department stores will find it difficult to survive the mass retailers and lifestyle specialists
and will need to re-invent themselves.
99.
100. Compressed lifecycles for products, stronger retail concepts, and global brands mean the
days of the large, mass-merchandised specialty chain are over.
101. Experiential retailing concepts will mix context and commerce in the future.
102. E-commerce will act as more of a vehicle for retailing than as the cash register. The
majority of sales will continue to be channel through retail stores.
103. Consumers will embrace new technologies that give them better information and more
control over the shopping process.
104. Stores and sales staff will have greater capabilities as retailers adopt technologies to better
utilise retail space and allow greater employee productivity. Over time, some smart store
solutions will displace human resources with technology.
105. M-commerce remains a mainly a B2B (business to business) than B2C (business to
consumer) sales method. The consumer is still attracted to more tangible methods of
purchasing and the store experience.
106. Globalisation of retailers will accelerate as national borders disappear and trade is deregulated and liberalised.
107. As retailers become more globalised they will seek alternative and more secure sources of
supply and this will mean that retailers become more involved in manufacturing.
108. Retailers will become brand managers as the search for competitive differentiation
accelerates. This will include more own branding, higher quality own brands and the
ownership of stand-alone brands.
109. Retailers will Brand-Share by integrating with complimentary retail brands, sharing
customer bases and leverage location strength through innovative store-within-a-store, or
brand-sharing, partnerships.
110. Retailers will attempt greater Brand Extension and seek to extend their brand into other
consumer and business markets thereby transcend competitive boundaries
111. Suppliers will strive to become providers of best-in-class categories as they take on an
increasing number of activities that traditionally have been the responsibility of the retailer.
112. As more suppliers get locked out of traditional retail channels, supplier direct to consumer
will become a more viable scenario for the future.
113. In a buyers market, where technology is changing the dynamics of the buyerseller
interface, the relationship between retailers and consumers will become much more
symmetrical and will favour the consumer.
114. For Retailers and Suppliers alike, survival will mean developing a New Concept of their
business model rather than just trying another redesign.
188
Retailer must strictly apply the concepts of Value and Relationship so that customers strongly believe
that the firm offers good value for the money, and that both customers and channel members want to
do business with that retailer.
1. Time and budget constrain consumers and they spend less time shopping, make fewer trips,
visit fewer stores, and shop more purposefully.
2. Consumers use different retail formats for different needs. Specifically, they split the
commodity shopping trip from the value-added shopping trip.
3. Consumers are more sceptical about price. Under the barrage of sales, price has lost its
meaning; gimmicks have lost their appeal. To regain consumer confidence, pricing by
retailers and manufacturers alike must become clearer, more sensible, and more
sophisticated.
Relationship retailing with regard to customers and channel partners, the differences in relationship
building between goods and service retailers, technology and relationships, and ethics and
relationships are considerations which will provide value.
4.
5.
Customers perceive the level of value provided is the same as the retailer intends.
6.
Customer Segments confirm that they receive the desired Value. Value is desired by all
customers; however, it means different things to different customers.
189
Consumers believe that the retailers prices have moved close to competitors. Comparison
shopping for prices is very easily done online and thus prices have moved closer together
for different types of retailers.
8.
Consumer believe that the Retailer is differentiation and the retailer is not perceived as a
me too retailer.
9.
Consumers believe that there is a specific value/price level for each product offering.
10.
Consumers believe that the Retailer can command a higher price for the same article by
adding better customer service.
The retail Value Chain represents the total bundle of benefits offered to consumers through a channel
of distribution. Consumers are only concerned with the results of a value chain, not the process.
Store location
Parking
Retailer ambience
Level of customer service
Products carried
Brands carried
Product quality
In-stock position
Delivery or shipping
Prices
Retailers image
Display windows
Store hours
Sales personnel
Point-of-sale equipment
Upscale store ambience
Plentiful sales personnel
Shopping carts
Self-service & self-check-out
expected,
augmented, and
potential
190
34. Expected retail strategy (the minimum Value Chain elements a given customer segment
expects from the retailer; failing which, customer dissatisfaction will cause the retailer to lose
customers):
a. Store cleanliness
b. Convenient hours
c. Well-informed employees
d. Timely service
e. Popular products in stock
f. Parking
g. Returns privileges
35. Augmented retail strategy (extra Value Chain elements that differentiate the retailer from
others and are the key to continued customer patronage):
h. Exclusive brands
i. Superior salespeople
j. Loyalty programs
k. Delivery
l. Personal shoppers
m. Special services
n. Valet parking
36. Potential retail strategy (Value Chain elements not yet perfected by the retailers competitors
in the same category were the retailer to capitalise on potential features gain a head start
over their adversaries):
o. 24/7 store hours
p. Unlimited customer return privileges
q. Full-scale product customisation
r. Instant fulfilment through in-store orders accompanied by free delivery
s. In-mall facilities
t. Transportation
Retailers have to avoid the potential pitfalls of a value-oriented retail strategy.
37. Planning value with just a price perspective. Value is tied to two factors, benefits and prices;
however most customers expect the retailer to absorb credit card costs even on discount or
low margin products.
38. Providing value-enhancing services that customers do not want and therefore will not pay
extra.
39. Competing in the wrong value / price segment. Retailers must ensure that their pricing points
are commensurate with the value offered, and that the value / price position reflect consumer
perceptions of the retail segment.
40. The belief that augmented elements alone create value. Retailers may offer a high-end
benefit not available from competitors, however this will not compensate for the unavailability
of more basic like adequate parking.
41. Paying lip service to customer service. Retailers may believe that the customer is always
right; however they sometimes act contrary to this philosophy. This may include having a high
191
192
Relationship Retailing is the process whereby retailers seek to form and maintain long-term bonds
with customers, rather than act as if each sales transaction is a new encounter with them. For
relationship retailing to work, enduring value-driven relationships are needed with other channel
members, as well as with customers; developing these is a challenge.
Customer Relationships
Loyal customers are the backbone of a business and in retailing this can have profound effects on
profitability as 30% of a retailers customers will represented over 70% of a retailers profits.
6.
7.
8.
9.
10.
Population demographics
Lifestyle trends
Attitudes toward and reasons for shopping
The level of loyalty
The mix of new versus loyal customers
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
Populations aging
Household size
Population mobility
Population location & urbanisation
Working population distribution by gender and age
Population distribution by social class and income levels
Immigration and emigration
Consumer gender roles
Market segment diversification
Interest in spending time shopping
Use of time-saving goods and services
Consumer demands of retailers
193
Core Customers
It is worth nurturing relationships with some customers rather than with others; these are the retailers
core customers, being their most regular customers. This group of customers need to be identified,
tagged and retained.
32. Customers that are the most profitable and the most loyal
a. Spend more money
b. Pay their bills promptly
c. Reasonable in their customer service requests
d. Prefer stable, long-term relationships
33. Customers that place the greatest value on what the retailer has to offer
a. Customers that prefer the retailers products
b. Customers that prefer the retailers customer services
c. Customers that prefer the retailers special strengths or uniqueness
34. Customers that are worth more to you than the retailers competitors
a. Customers that warrant extra effort and investment
b. Customers who are worth more to a competitor will eventually defect
The retailers desired mix of new versus loyal customers depends on that retailers stage in its life
cycle, goals, and resources, and its competitors actions.
A mature retailer is more apt to rely on core customers and supplement its revenues with new
shoppers. A new retailer faces the dual tasks of attracting shoppers and building a loyal following; it
cannot do the latter without the former. If goals are growth-oriented, the customer base must be
expanded by adding stores, increasing advertising, and so on; the challenge is to do this in a way that
does not deflect attention from core customers. Although it is more costly to attract new customers
than to serve existing ones, core customers are not cost-free. If competitors try to take away a
retailers existing customers with price cuts and special promotions, a retailer may feel that it must
194
Customer Service
Customer service refers to the identifiable, but sometimes intangible, activities undertaken by a
retailer in conjunction with the goods and services it sells. Customer service affects the total retail
experience. Consistent with a value chain philosophy, retailers must apply two elements of customer
service: expected customer service is the service level that customers want to receive from any
retailer, such as basic employee courtesy; augmented customer service includes the activities that
enhance the shopping experience and give retailers a competitive advantage.
The attributes of personnel who interact with customers (such as politeness and knowledge), as well
as the number and variety of customer services offered, have a strong effect on the relationship
created.
Planning the best customer service strategy can be complex and challenging especially during
economically difficult times which is causing retailers to cut costs in many areas of their businesses;
albeit customers still expect the same level of service. Customer service satisfaction has always
been a key for positive financial results. Businesses must not make customer service investments
only to keep pace with growth, they should view their spending as a strategic benefit to bring greater
customer satisfaction and retention.
Some retailers realise that customer service is better when they utilise employee empowerment,
whereby workers have the discretion to do what they believe is necessary, within reason, to satisfy
the customer, even if this means bending some rules.
195
For the retailer, what customer services are expected and what customer services are augmented:
42.
43.
44.
45.
46.
Having outlined a broad customer service plan, the retailer then identifies individual
customer services.
a. Alterations
b. Baby strollers or Baby Changing facilities
c. Baby-sitting or Childrens Areas
d. Beauty salon
e. Bridal registry
f. Complaints and returns handling
g. Credit facilities
h. Designers
i. Dressing rooms
j. Extended store hours
k. Fitting rooms
l. Free parking
m. Gift certificates
n. Gift wrapping
o. Information services
p. Installation / Technical services
q. Layaway
r. Mail and phone orders
s. Open credit account
t. Option credit account
u. Packaging (gift wrapping)
v. Parking
w. Personal shoppers
x. Phones
y. Rest rooms
z. Restaurant
aa. Retailer-sponsored credit cards
bb. Shopping bags
cc. Sitting areas
dd. Special sales for regular customers
ee. Storage
ff. Ticket outlets
gg. Trade-ins
hh. Trial purchases
ii. Water fountains
196
Customer Satisfaction
Customer satisfaction occurs when the value and customer service provided through a retailing
experience meet or exceed consumer expectations. Only very satisfied customers are likely to
remain loyal in the long run.
Expert and Industry Appraisal of Adams Shoes:
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
Customer feedback
On-going customer satisfaction surveys
Customers rating customer services
Customer services exceed expectations
Customer services appreciated
Customer services disliked
Loyalty Programs
Consumer loyalty programs reward the retailers best customers, those with whom it wants longlasting relationships.
Expert and Industry Appraisal of Adams Shoes:
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
Special vouchers
Coupons for new products
Referral coupons on goods and services from other vendors
Gifts with purchases
Special Events
Preferred parking
Personal shopping assistance
197
Channel Relationships
Within a value chain, the members of a distribution channel (manufacturers, wholesalers, and
retailers) jointly represent a Value Delivery System, which comprises all the parties that develop,
produce, deliver, and sell and service particular goods and services.
The ramifications for retailers include:
Expert and Industry Appraisal of Adams Shoes:
82.
Each channel member is dependent on the others. When consumers shop with a certain
retailer, they often do so because of both the retailer and the products it carries.
83.
All value delivery system activities must be enumerated and responsibility assigned for
them.
84.
Small retailers may have to use suppliers outside the normal distribution channel to get the
products they want and gain adequate supplier support. Although large retailers may be
able to buy directly from manufacturers, smaller retailers may have to buy through
wholesalers that handle small accounts.
85.
A value delivery system is as good as its weakest link. No matter how well a retailer
performs its activities, it will still have unhappy shoppers if suppliers deliver late or do not
honour warranties.
86.
The nature of a given value delivery system must be related to target market expectations.
87.
Channel member costs and functions are influenced by each partys role. Long-term
cooperation and two-way information flows foster efficiency.
88.
Value delivery systems are complex due to the vast product assortment of superstores, the
many forms of retailing, and the use of multiple distribution channels by some
manufacturers.
89.
Non-store retailing (such as mail-order, phone, and online transactions) requires a different
delivery system than does store retailing.
90.
Due to conflicting goals about profit margins, shelf space, and so on, some channel
members are adversarialto the detriment of the value delivery system and channel
relationships.
When members of a Value Delivery System forge strong positive channel relationships, they better
serve each other and the final consumer.
91.
Traditionally, the relationship between retailers and suppliers was, at best, arms length.
92.
The manufacturers goal was to move the greatest volume of goods at the highest price.
93.
The retailers goal was to negotiate the lowest price for the goods.
94.
Competitive pressures led to a new paradigm. It focused on a simple idea: make sure the
right product at the right price is on the shelf when the customer enters the store, while
maintaining the lowest possible inventory at all points in the pipeline from suppliers to
retailer. This requires cooperation between retailers and upstream suppliers.
95.
d. Retail buyers are given more responsibilities and accountability for category
results.
e. Retailers and suppliers must share data and be more computerised.
f.
Rented-goods services, whereby consumers lease and use goods for specified periods of
time. Tangible goods are leased for a fixed time, but ownership is not obtained and the good
must be returned when the rental period is up. Examples are car rentals, carpet cleaner
rentals at a supermarket, and video rentals at a convenience store.
Non-goods services, whereby intangible personal services are offered to consumers, who
then experience the services rather than possess them. The seller offers personal expertise
for a specified time in return for a fee; tangible goods are not involved. Some examples are
stockbrokers, travel agents, real-estate brokers, and personal trainers.
The terms customer service and service retailing are not interchangeable. Customer service refers to
the activities undertaken in conjunction with the retailers main business; they are part of the total
retail experience. Service Retailing refers to situations in which services are sold to consumers.
There are four unique aspects of service retailing that influence relationship building and customer
retention.
Expert and Industry Appraisal of Adams Shoes:
96.
97.
The service provider and his or her services are sometimes inseparable (thereby localising
marketing efforts).
98.
99.
The aspect of human nature involved in many services makes them more variable.
199
The intangible (and possibly abstract) nature of services makes it harder for a retailer to develop a
clear consumer-oriented strategy, particularly because many retailers (such as opticians, repair
people, and landscapers) start service businesses on the basis of their product expertise. The
inseparability of the service provider and his or her services means that the owneroperator is often
indispensable and good customer relations are pivotal.
100. Perishability presents a risk that in many cases cannot be overcome. Thus, revenues from
an unrented hotel room are forever lost.
101. Variability means that service quality may differ for each shopping experience, store, or
service provider.
Service retailing is much more dependent on personal interactions and word-of-mouth communication
than is goods retailing:
Relationship marketing benefits the customer, as well as the firm. For services that are
personally important, variable in quality, and/or complex, many customers will desire to be
relationship customers. Medical, banking, insurance, and hairstyling services illustrate some
or all of the significant factors, importance, variability, and complexity, which would cause
many customers to desire continuity with the same provider, a proactive service attitude, and
customised service delivery.
The intangible nature of services makes them difficult for customers to evaluate prior to
purchase.
Knowledge of the customer combined with social rapport built over a series of service
encounters facilitates the tailoring of service to customer specifications. Relationship
marketing does not apply to every service situation. However, for those services distinguished
by the characteristics discussed here, it is potent.
Good behaviour depends not only on the retailer but also on the expectations of the community in
which it does business.
200
Ethics
In dealing with their constituencies (customers, the general public, employees, suppliers, competitors,
and others), retailers have a moral obligation to act ethically. Furthermore, due to the attention paid to
firms behaviour and the high expectations people have today, a failure to be ethical may lead to
adverse publicity, lawsuits, the loss of customers, and a lack of self-respect among employees.
When a retailer has a sense of ethics, it acts in a trustworthy, fair, honest, and respectful manner with
each of its constituencies. Executives must articulate to employees and channel partners which kinds
of behaviour are acceptable and which are not. The best way to avoid unethical acts is for firms to
have written ethics codes, to distribute them to employees and channel partners, to monitor
behaviour, and to punish poor behaviour, and for managers to be highly ethical in their own conduct.
Often society may deem certain behaviour to be unethical even if laws do not forbid it. Most observers
would agree that such practices as these are unethical (and sometimes illegal, too):
Expert and Industry Appraisal of Adams Shoes:
Contacts which do not disclose the sponsor and the purpose of the contact.
Competition prizes not advertised in a clear, honest, and complete way.
Merchandise shipped without receiving customer permission.
Telemarketers knowingly call a consumer with an unlisted or unpublished phone number.
Social Responsibility
A retailer exhibiting social responsibility acts in the best interests of society, as well as itself. The
challenge is to balance corporate citizenship with a fair level of profits for shareholders, management,
and employees. Some forms of social responsibility are virtually cost-free, such as having employees
participate in community events or disposing of waste products in a more careful way. Some are more
costly, such as making donations to charitable groups or giving away goods and services to a school.
Still others mean going above and beyond the letter of the law, such as having free loaner
wheelchairs for persons with disabilities in addition to having legally mandated wheelchair
accessibility to retail premises.
Retailers know that socially responsible acts do not go unnoticed. Though the acts may not stimulate
extra profits for firms with weak strategies, they can be a customer inducement for those otherwise
viewed as me too entities. It may also be possible to profit from good deeds; a retailer donates
excess inventory to a charity for the poor, it can take a tax deduction equal to the cost of the goods.
201
Consumerism
Consumerism involves the activities of government, business, and other organisations to protect
people from practices infringing upon their rights as consumers. These actions recognise that
consumers have basic rights that should be safeguarded.
Retailers and their channel partners need to avoid business practices that violate consumer rights and
to do all they can to understand and protect them, for reasons that include the following:
Expert and Industry Appraisal of Adams Shoes:
To avoid customer relations problems, retailers must devised programs to protect consumer rights
without waiting for government or consumer pressure to do so.
Retailers should enacted programs to test merchandise for specific attributes:
122.
123.
124.
125.
126.
Value
Quality
Misrepresentation of contents
Safety
Durability
Summary:
130.
Understand what value really means and highlight its pivotal role in building and
sustaining relationships.
a. Undertake activities and processes to provide a given level of value for the consumer.
b. Consumers perceive the value offered, based on the perceived benefits received
versus the prices paid.
c. Perceived value varies by type of shopper.
d. Value chain represents the total bundle of benefits offered by a channel of
distribution.
e. Value chain comprises store location, ambience, customer service, the
products/brands carried, product quality, the in-stock position, shipping, prices, the
retailers image, and so forth.
f. Elements of a retail value chain visible to shoppers.
g. Expected retail strategy which represents the minimum value chain elements a given
customer segment would expect from the retailer.
h. Augmented retail strategy which includes the extra elements that differentiate the
retailer.
i. Potential retail strategy includes value chain elements not yet perfected in the
retailers industry category.
202
132.
Differences in relationship building between goods and service retailers.
a. Focus on selling tangible products.
b. Service retailing.
i.
rented-goods services
ii.
owned-goods services
iii.
non-goods services
133.
a.
b.
c.
d.
e.
134.
a.
b.
c.
d.
e.
203
Consumers in developed countries spend most of their after-tax income on such services as travel,
recreation, personal care, education, medical care, and housing. In developed countries between 7080% of the labour force works in services.
During the past 30 years, the prices of services have risen more than the prices of many goods
because manufacturing has migrated to low cost countries and of course services incur the local
labour costs. In addition, technological advances, automation has substantially reduced
manufacturing labour costs, but many services remain labour-intensive because of their personal
nature.
Many traditional goods retailers are now turning their attention to the provision of services and the
historic dividing lines between goods and services retailers is now very blurred.
Standardising services:
18. Reduces their variability
19. Makes it easier to set prices
20. Improves efficiency
Services can be standardised:
21.
22.
23.
24.
205
1. Gender
2. Age
a.
b.
c.
d.
e.
f.
g.
Under 13
13-17
18-25
26-34
35-54
55-64
65 or over
3. Marital status
a. Single, never married
b. Married without children
c. Married with children
d. Divorced
e. Separated
f. Widowed
g. Living with partner
4. Highest level of education you have completed
a. Less than High School
b. High School
c. Some College
d. 2-year College Degree
e. 4-year College Degree
f. Masters Degree
g. Doctoral Degree
h. Professional Degree
5. Are there any children in at home, if so, what are their ages
a. Under 10
b. 10 to 15
c. 16 to 19
d. No, no children at home
6. Indicate the number of children in your household under the age of 18.
206
0
1
2
3
4 or more
How many Boys
How many Girls
Middle Management
Junior Management
Administrative Staff
Support or Functional Staff
Student
16. The organisation you work for comes under which of the following categories?
a. Public sector (e.g. government)
b. Private sector (e.g. most businesses and individuals)
c. Not-for-profit sector
d. Do not know
e. Other
17. Can you estimate your organisation's total budget for this year?
a. less than $1 million (US)
b. $1 million to $10 million (US)
c. $10 million to $100 million (US)
d. $100 million to $500 million (US)
e. $500 million to $1 billion (US)
f. over $1 billion (US)
g. Do not know or Rather not say
18. During an average week, most of your professional correspondence (postal mail or e-mail) is
with which of the following:
a. Public sector (e.g. government)
b. Private sector (e.g. most businesses and individuals)
c. Not-for-profit sector
d. Do not know
e. Other
19. Indicate which of the following are sources of revenue for your organisation:
a. Sales to individuals or private organisations (but not contracts)
b. Sale to government organisations (but not contracts)
c. Contracts to do work for private organisations
d. Contracts to do work for government organisations
e. Contracts to do work for other organisations
f. Government appropriations
g. User charges and fees
h. Donations
i. Don't know or Other
20. What is the present occupation of the head of household?
a. Professional/technical
b. Manager/official/proprietor
c. Clerical
d. Sales
e. Crafts/trades
f. Operator
g. Manual worker
h. Service worker
i. Retired
j. Homemaker
k. Student
l. Unemployed or Other
208
Brand Survey
Derived from the Customer Surveys:
Customer Surveys of Adams Shoes:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
209
210
Customer Surveys
Customer Surveys of Adams Shoes:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
211
212
Not enthusiastic
Didn't listen carefully
Unfriendly
Unresponsive
Other
No qualities irked me
214
215
Customer Satisfaction
Customer Surveys of Adams Shoes:
Net Promoter Score (NPS) TYPE survey. The *Net Promoter Score is a common test of
customer satisfaction.
The score is calculated by sorting respondents into Promoters (High), Neutrals (Middle) and
Detractors (Low), then subtracting the percentage of respondents that are Detractors from the
percentage that are Promoters. This survey calculates a Net Promoter Score type for two
instances: the purchase of a specific Brand Model and overall feelings of the Brand. In
addition, it collects other feedback and demographic information for future segmentation.
*The Net Promoter Score is a registered trademark of Bain & Company and Satmetrix.
1. Considering only your most recent purchase experience, how likely would you be to
recommend the purchase of the product(s) to a friend or colleague? (0 is not at all likely, 10 is
extremely likely)
2.
Considering your complete experience with the company, how likely would you be to
recommend the company to a friend or colleague? (0 is not at all likely, 10 is extremely
likely)
3. What can the company do in the future to earn a score of 9 or 10?
4. What did the company do really well?
5. What can the company do to be even better?
Customer Voices
Customer Surveys of Adams Shoes:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
There would be something missing in my life if the store / brand did not exist.
I have the feeling that I really understand the store / brand.
I have feelings for the store / brand that I do not have for other companies/brands.
The store / brand has always been good for me.
The store / brand and I have a lot in common.
The store / brand reminds me of things I have done and places where I have been.
The store / brand can always count on me.
I trust the store / brand
I am satisfied with the quality of products of the store.
The quality of the products of the store is important to me.
I am satisfied with the value for money I get from store.
The value for money I get from store is important for me.
I am satisfied with the reliability of the products of the store.
The reliability of products of the store is important to me.
I am satisfied with the product guarantee from the store.
The product guarantees at the store is important to me.
I am satisfied with the expertise of the store service staff.
The expertise of the store service staff is important to me
I am satisfied with the fast response of the store service staff
The fast response of the store service staff is important to me.
The store sales people are friendly.
The friendliness of the store sales people is important to me.
216
Much Better
Better
About the same
Worse
Much Worse
1. Purchase Satisfaction: How much do you agree or disagree with the following statements
about the product(s)?
i. Strongly Disagree
ii. Disagree
iii. Somewhat Disagree
iv. Neither Agree nor Disagree
v. Somewhat Agree
vi. Agree
vii. Agree Strongly
a. This is one of the best products I could have bought.
b. This product is exactly what I need.
c. This product hasnt worked out as well as I thought it would.
d. I am satisfied with my decision to buy this product.
e. Sometimes I have mixed feelings about keeping the product(s).
f. My choice to buy this product was a wise one.
g. If I could do it over again, Id buy a different make/brand.
h. I have truly enjoyed this product.
i. I feel bad about my decision to buy this product.
j. I am not happy that I bought this product.
k. Owning this product has been a good experience.
l. Im sure it was the right thing to buy this product.
218
Product Ownership
This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:
Customer Surveys of Adams Shoes:
What was the name of the store where this product was bought?
What price did you pay for this product?
How many Company products do you own?
How many similar products of any brand do you own?
How many Company products have you bought in the past 12 months?
How many similar products of any brand have you bought in the past 12 months?
219
This survey is about the Companys new brand(s) / product(s) / service(s) as described:
1. How would you best describe your familiarity with a brand / product / service like that
described above?
a. I was not aware of such a New product/service
b. Only generally aware
c. Have investigated or researched such products
d. Have demonstrated a product like this
e. Have purchased or regularly use a product like this
2. About how many units of this new product would you buy over the next year at each price
point listed below (FMV Fair Market Value)?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. FMV = Estimated Fair Market Value = Recommended Retail Price
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
3. About what would you expect to pay for the new product(s) / service(s) like the one
described? (Nearest dollar)
4. At what price would this new product begin to look inexpensive or cheap?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
5. At what price would this new product begin to look Fair Value?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
6. At what price would the product begin to look too expensive?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
220
This survey is about the Companys brand(s) / product(s) / service(s) as described here:
1. How would you best describe your familiarity with a brand / product / service like that
described above?
a. I was not aware of such a product/service
b. Only generally aware
c. Have investigated or researched such products
d. Have demonstrated a product like this
e. Have purchased or regularly use a product like this
2. Having been told / seen a list of features that are part of the product: How important is each
feature to you?
a. Not At All Important
b. Extremely Important
3. Rank the features in order of importance:
4. How favourable is your overall reaction to the Product/Service?
a. Poor
b. Fair
c. Good
d. Very good
e. Excellent
5. What is it that you like most about the product(s)?
6. What do you like least about the product(s)?
7. Based on the product description, how interested would you be in buying this product if it
were within your budget?
a. Not at all interested
b. Not very interested
c. Not sure
d. Somewhat interested
e. Extremely interested
8. About what would you expect to pay for the product(s)?
9. How often do you / would you use product(s) in this category?
a. Once a week or more often
b. 2-3 times a month
c. Once a month
d. Every 2-3 months
e. 2-3 times a year
f. Once a year or less
g. Do not use
222
Product Survey
This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:
Customer Surveys of Adams Shoes:
It is familiar
Good for the whole family
Saw it in the store
I like the product(s)
It was on sale
Other
18. If you do not have all of your service work done at this company, tell us why:
a. Location
b. Quality of service
c. Price
d. Parts not available
e. Treatment by personnel
f. Cannot get work done quickly enough
g. Service Department hours
h. Length of time to get service at companies
i. Time it takes to get repair order written up
j. Other
19. Have you returned to this company for any type of service during the past 12 months?
a. Yes
b. No
c. Not sure
20. For your most recent visit to this company, what type of service did you have done?
a. Routine maintenance
b. Repairs
c. Service repairs you paid for
d. Warranty-covered repairs
e. Other
21. Overall, how satisfied are you with this service experience?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very Dissatisfied
22. Did you have any concerns with the companys handling of this service visit?
a. Yes
b. No
23. Did you let the company know about your concern(s)?
a. Yes
b. No
224
Product Purchases
This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:
Customer Surveys of Adams Shoes:
c. Brand
d. Don't know
e. None or Other
13. Which of the following attributes enticed you to try the product(s) initially?
a. Looks good
b. Easy to use/convenient
c. Price Value
d. Solves Problem
e. Readily available
f. Best quality
g. Good selection
h. Just what I need
i. Advertising
j. Not sure or Other
226
1. Approximately how many times did you shop for electrical or electronic products in the past
year?
2. Indicate the approximate total amount your family spent on electrical or electronic products
within the last year.
a. Less than $300
b. $300 - $499
c. $500 - $799
d. $800 - $999
e. $1,000 - $2,499
f. More than $2,500
g. Don't know/Not sure
3. During the past year, have you or a member of your family purchased a major electrical or
electronic product?
4. If yes, what item was purchased?
a. TV (priced more than $800)
b. TV (priced between $400 and $799)
c. TV (priced less than $400)
d. DVD Recorder / Home cinema
e. Home Computer
f. Household White Goods
5. What was the total amount spent on the item(s)?
6. If you purchased accessories, how much did you pay for these items?
7. While deciding to purchase the products:
a. How many phone calls were made to retailers for information about the product?
b. How many visits did you make to different retailers?
8. The total number of hours spent inside retail stores while making this decision?
9. How many brands or individual products did you examine in the different retail stores?
10. The item was purchased:
a. as a gift for someone not in your household.
b. as a gift for someone in your household.
c. to be used mostly by other members of your household.
d. to be used mostly by yourself.
e. Other
11. How many times have you purchased items in this product category in the past 10 years?
a. 0
b. 1
c. 2
d. 3-4
e. More than 5 times
f. Don't know/Not sure
227
If you purchased accessories, how much did you pay for these items?
How many phone calls were made to retailers while deciding to purchase this product?
How many times did you visit the different retail stores?
The total number of hours spent inside retail stores while making this decision?
How many brands or individual products did you examine in the different retail stores?
The item was purchased for the following reasons
23. How many times have you purchased items in this product category in the past 10 years?
a. 0
b. 1
c. 2
d. 3-4
e. 5-6
f. More than 6 times
24. Which of the following have you purchased within the last month?
a. Microwave
b. Household white goods
c. audio/car stereo/radio/cassette
d. Calculator
e. Video / computer game
f. Computer
g. Phone
h. TV
228
25. In thinking about your most recent experience with the Company, was the quality of customer
service you received:
a. Excellent
b. Good
c. Average
d. Poor
e. Very poor
26. If you were not totally satisfied with the customer service, describe the reasons for your
dissatisfaction.
27. Was the process for getting your question resolved:
a. Excellent
b. Good
c. Average
d. Poor
e. Very poor
28. If you were not totally satisfied with the process of getting your problem resolved, describe the
reasons for your dissatisfaction.
29. Would you say the value of the Company product, as compared to its price, is:
a. Excellent
b. Good
c. Average
d. Poor
e. Very poor
30. The following questions pertain to the customer service representative you spoke to most
recently:
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree
31. The customer service representative was very courteous.
32. The customer service representative handled my call quickly.
33. The customer service representative was very knowledgeable.
34.
35.
36.
37.
The following questions pertain to the process by which your most recent service contract
was handled:
The waiting time for having my questions addressed was satisfactory.
My phone call was quickly transferred to the person who best could answer my question.
The automated phone system made the customer service experience more satisfying.
Consider the total package of the Company including customer service, features and benefits,
and cost. How satisfied are you with the company?
38. If the Companys Products were no longer available, what would you replace it with?
a. Functional Competitors
229
231
Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.
232
Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.
233
Listed below are statements about shopping behaviour for clothes and about clothing fashions:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.
234
Statements about shopping behaviour for clothes and about clothing fashions.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.
235
Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.
236
Select the answer that best expresses how important you think the factor is to you in selecting a
supermarket.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
Fast checkout
A gourmet food section
Low priced advertised specials
Close to where you live
Offers coupons in newspaper advertisements
Courteous, friendly employees
Offers generic products
Makes it easy to cash checks
Large selection of wines
Offers several brands to choose from in a category
Provides menu and recipe ideas
Convenience of parking
High quality fruits and vegetables
Has a prescription pharmacy in store
Wide selection of ethnic foods (i.e., Mexican, Japanese, etc.)
Open 24 hours
Quality of meat cuts
Wide selection of store private labels
A service deli (with clerks to prepare product of your choice)
Provides nutritional information about products
Wide selection of national brands
Has bakery in the store
Offers a variety of health and personal care products
Offers variety of smaller size (e.g., single serving) products
Large selection of fruits and vegetables
Sells fresh seafood
Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.
237
Thinking of all the stores in this area where you or your family might shop, in which store would you
most likely shop for the following items?
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
Men's underwear
Women's underwear
Sports equipment
Men's sweaters
Women's dresses
Fishing tackle
Costume jewellery
Maintenance-free battery for a car
Auto oil filter and/or motor oil
Power lawnmower and other power garden tools
Exterior house and trim paint
Jeans for yourself
Small kitchen appliances
Sports or casual slacks
Portable TV
A digital camera
Installation of a car exhaust system
Ceiling fans and accessories
Paint for your living room
Small power tools such as a power drill
Mobile phone
Hand tools such as hammers, screw drivers
Easy to assemble furniture
Exercise equipment
Bicycles for yourself or your children
Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.
238
239
240
1. Have you ever bought / ordered the product(s) from the retailer?
2. Overall, how would you rate the Customer Service from retailer?
a. Excellent
b. Good
c. Average
d. Poor
e. Terrible
f. Not Sure
3. How satisfied are you with the Customer Service from the retailer?
a. Extremely satisfied
b. Very satisfied
c. Neutral
d. Very dissatisfied
e. Extremely dissatisfied
4. Would you recommend the Customer Service from the retailer to a friend?
a. Yes
b. No
c. Not Sure
d. If no, why not?
5. For your NEXT product(s) purchase, how likely are you to purchase from the retailer?
a. Definitely would buy
b. Probably would buy
c. Might or might not buy
d. Probably would not buy
e. Definitely would not buy
6. Which of the following modes did you use to place the order for the product(s)?
a. In-store
b. Mail order
c. Internet
d. Over the phone
e. Fax
f. Other
7. What are the THREE main reasons you didn't purchase the product(s) from another
company?
8. What would you change about the process of purchasing the product(s) (i.e. placing the
order, mode of payment, delivery, etc.) from the retailer?
9. How did you contact customer service?
a. Email
b. Fax
c. Telephone
d. Web
e. In person
f. Other
10. If you called on the phone, how quickly did you get through?
a. Immediately
b. Under 30 seconds
241
About 1 minute
2-5 minutes
More than 5 minutes
I left a message
11. If you contacted customer service by fax or email, how long did it take to get a response?
a. Under 2 hours
b. 2-6 hours
c. 6-12 hours
d. 1 business day
e. More than 1 business day
f. They didn't get back to me
12. What was your reason for contacting customer service?
a. Not satisfied with product
b. Did not receive product
c. Unable to order product/service
d. Problem with Web site
e. Needed more product information
f. Cancel subscription or membership
g. Other
13. Overall, how would you rate your satisfaction with the companys customer service
representative?
a. Extremely satisfied
b. Satisfied
c. Neutral
d. Unsatisfied
e. Extremely unsatisfied
14. Do you have comments or suggestions that would help us improve the companys customer
service?
15. Overall, I am very satisfied with the way the retailer performed (is performing).
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26. What would be the primary reason for being very satisfied with the retailer service
representatives?
27. What would be the primary reason for being very satisfied with the retailer store senior staff?
28. Compared to how you felt about the retailer before, what would you say is the likelihood of
purchasing again?
a. Better, based on performance
242
244
245
247
248
249
12. Select the category of service work performed for the last service visit:
a. Warranty
b. Non-warranty
c. Scheduled maintenance
d. Other
13. Was your product fixed right the first time?
a. Yes
b. No
c. Not sure
14. After your service visit, did someone from the company contact you by phone or by mail to
see if you were satisfied with the overall service experience?
15. Would you recommend this company to a friend or relative as a place to have their products
serviced?
a. Definitely
b. Probably
c. Not sure
d. Probably not
e. Definitely not
16. Should you need service again, would you return to this company?
a. Definitely
b. Probably
c. Not sure
d. Probably not
e. Definitely not
17. If you are not totally satisfied with the service, state below the reason(s) for your
dissatisfaction.
Indicate your opinion of the following statements about salespersons:
18.
19.
20.
21.
22.
23.
24.
25.
26. How long did you have to wait before a salesperson attended to you?
a. 0-2 minutes
b. 3-5 minutes
c. 6-10 minutes
d. 11-15 minutes
e. more than 15 minutes
27. On your most recent service, how would you rate the service in the following areas?
a. Quality of work performed
b. Avoiding inconveniencing you
c. Making you feel comfortable
d. Willingness to go out of their way to satisfy you
e. Friendliness and helpfulness of cashiers
f. Having convenient hours for service
g. Ease of obtaining an appointment
250
28. Did the following things occur on your most recent service visit?
a. You were explained the work to be performed beforehand.
b. You were explained the work performed and the breakdown of the charges.
c. You were informed when the work was done.
d. The paperwork was completed and waiting
e. They contacted you to ensure the work was performed to your satisfaction
29. What could the company do to improve the service experience?
30.
How satisfied are you with the customer service you received most recently:
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
31.
If you were not totally satisfied with the customer service, describe the reason(s) for your
dissatisfaction?
Describe the aspects of the service that you were completely satisfied with?
32.
33.
How satisfied are you with the process of getting your question resolved.
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
34.
If you were not totally satisfied with the process of getting your question resolved, describe
the reason(s) for your dissatisfaction?
If you were satisfied with the process of getting your question resolved, describe the
reason(s) for your satisfaction?
35.
36.
37.
38.
Choose an option that closely represents your opinion about the customer service representative that
you spoke to recently:
39.
40.
41.
Choose an option that closely represents your opinion about the process with which your most recent
service contract was handled:
42.
43.
My phone call was quickly transferred to the person who best could answer my question.
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree
44.
The automated phone system made the customer service experience more satisfying.
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree
Consider the total package i.e. the customer service, the product(s) features, benefits, and cost:
45.
46.
If the product(s) were no longer supplied by the company, what would you replace it with?
a. Functional Competitors
b. In-Kind Competitors
47.
All things considered, over the next 12 months how likely are you to replace the Companys
product(s) with a Competitors Products?
a. Very certain
b. High chance
c. Low chance
d. No chance
252
What are some of the reasons that you are looking to replace the Companys product(s)
during this year?
59. How could the company improve the quality of support we provide to you?
60.
61.
Overall, how satisfied are you with the amount of contact between you and the company?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
f. Not sure
62.
63.
Overall, the value of the company services compared with the price paid is:
a. Excellent
b. Very good
c. Good
d. Fair
e. Poor
64.
253
In evaluating your most recent customer service experience, was the quality of service you
received:
a. Very poor
b. Somewhat unsatisfactory
c. About average
d. Very satisfactory
e. Excellent
66.
67.
68.
What about the process of getting your problem resolved stands out?
70.
Was there anything about the courteousness of the service that stands out as being
superior?
a. Patient
b. Enthusiastic
c. Listened carefully
d. Friendly
e. Responsive
f. Other
71.
72.
74.
77.
My phone call was quickly transferred to the person who best could answer my question.
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree
78.
79.
80.
255
82.
83.
What recommendations would you offer for improving the product(s) / service(s)?
Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.
256
Website Evaluation
Customer Surveys of Adams Shoes:
257
Thinking about your experience with this internet retailer, indicate your opinions about the following
statements:
1. I prefer making a purchase from this Internet retailer over using local offices, malls or stores.
2. I prefer this Internet retailer over other home shopping services (i.e., catalogues, "1-800"
services or television).
3. This Internet retailer doesn't just sell products or services--it entertains me.
4. I received special rewards and discounts from doing business with this Internet retailer.
5. I say positive things about this Internet retailer to other people.
6. I consider this Internet retailer to be my first choice when I need products or services of this
type.
7. The "look" of this Internet site is appealing to me.
8. I really like doing business with this Internet retailer.
9. I intend to continue to visit this Internet retailer's site in the future.
10. I intend to purchase from this Internet retailer in the future.
11. This Internet retailer is one of the first places I intend to look when I need the type of
merchandise or services it provides.
12. It would require a lot of time and effort on my part, to set up an account with another Internet
retailer.
13. It would take a lot of time and energy to look for another Internet retailer for this type of
product.
14. The products and/or services I purchased from this Internet retailer were a good value.
15. I enjoy doing business with this Internet retailer.
1. Have you purchased products online, who did you purchase from, what did you spend?
2. In the past three months, have you purchased products or services through the Internet, for
your personal use?
3. Which products or services categories have you most recently purchased online?
a. Food
b. Clothing
c. Household goods & articles
d. Electricals & Electronic products
e. Computers or peripherals
f. Software
g. CDs/DVDs
h. Flowers
i. Concert tickets
j. Travel
k. Fast food
258
Books or magazines
Services
Financial & Insurance products
Other
4. Thinking back to the Internet retailers you've purchased from, have you ever:
a. provided feedback of the product or services they sell
b. completed a survey for that Internet retailer
c. communicated with other users via e-mail or chat rooms
d. When you began shopping on the last occasion, were you:
i. Just surfing the net
ii. Intending to make a purchase.
iii. Other
5. How much did you spend on your most recent transaction?
a. Less than $25
b. $26-$50
c. $51-$75
d. $76-$100
e. Over $100
6. Did you return the merchandise or cancel the service after you received it?
7. Did you contact the customer service department of this Internet retailer with a complaint or
problem?
8. How much would you estimate you have spent with this Internet retailer in the past twelve
months?
a. less than $50
b. $51-$100
c. $101-$150
d. $151-$200
e. more than $200
9. How many transactions have you made with this Internet retailer over the past 12 months?
10. Which Internet retailers do you use most?
11. When you began shopping on the last occasion, were you:
a. Surfing the net with no intent to purchase
b. Surfing the net with intent to make a purchase.
c. Other
259
Other
7. Which of these groups have you become more connected to through the Internet?
a. None
b. People who share my political interests
c. People who share my hobbies/recreational activities
d. People who share my religion
e. People in my profession
f. People in my family
g. People in similar life situations (e.g. self-help groups, support groups)
h. Other groups
8. Complete the following sentence in the way that comes closest to your own views: "Since
getting on the Internet, I have "
a. become MORE connected with people like me.
b. become LESS connected with people like me.
c. Don't know/can't say
9. Which of the following have you done?
a. Ordered a product/service from a business, government or educational entity by filling
out a form on the web
b. Made a purchase online for more than $100
c. Created a web page
d. Customised a web page for yourself (e.g. Google, Yahoo, News Services)
e. Changed your browser's "startup" or "home" page
f. Changed your "cookie" preferences
g. Participated in an online chat or discussion (not including e-mail)
h. Listened to a radio broadcast online
i. Made a telephone call online
j. Used a nationwide online directory to find an address or telephone number
k. Taken a seminar or class about the Web or Internet
l. Bought a book to learn more about the Web or Internet
Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.
261
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Company leadership is fully committed to the long-term success of their sales partners.
Top management responds adequately to needs in the marketplace.
Top management strengthens the company's competitive position.
Company leadership can be trusted to do what they say they will do.
Company leadership is committed to support and work with the sales team.
The company and the sales team are unified, moving in one direction together.
The company and the sales team share a positive, winning attitude.
There is effective communications between the promotion agency and the company.
The promotion agency listens to and understands the sales team's needs.
The company's marketing is aligned in support of the sales network.
There is effective communications between the company's marketing group and the sales
teams in the field.
12. The marketing group listens to and understands sales teams' needs.
13. Employees understand the company's vision and values.
262
1. In your opinion, how have customer satisfaction ratings changed at your organisation in the
past year?
a. Improved considerably
b. Improved somewhat
c. Has remained about the same
d. Has declined somewhat
e. Has declined considerably
f. Don't know
2. In your opinion, how important is customer satisfaction within your organisation?
a. It's a high priority
b. It's a mid-level priority
c. It's a low priority
d. Don't know
3. Does your organisation have managers/staff dedicated to customer -satisfaction matters?
a. Yes
b. No
c. Don't know
4. How often does your organisation conduct surveys to evaluate customer satisfaction?
a. Monthly or more often
b. Quarterly
c. Semi-annually
d. Yearly or less often
e. We don't
5. Which one of the following means is used to evaluate customer satisfaction?
a. Questionnaires sent through the mail (in-house efforts)
b. Follow-up telephone calls (in-house efforts)
c. An outside firm has been hired to track customer satisfaction
d. Suggestion boxes placed in facilities
e. Other
6. Has your organisation initiated programs to improve customer satisfaction within the past
year?
a. Yes
b. No
c. Don't know
7. What sector of the industry do you believe needs the most improvement in customer
satisfaction?
8. What is the most compelling reason for your organisation to improve customer satisfaction?
a. Fear of losing customer to competitors
b. Fear of losing revenue
c. Fear of increased consumerism
d. Fear of damage to organisation's reputation
e. Other
9. In your opinion, has customer satisfaction been shown to have a direct effect on your
organisation's bottom line?
a. Yes
263
6. Overall, how satisfied were you with your last training course:
a. Extremely Satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Extremely Dissatisfied
7. with the materials you received before the course and their value in preparing you to more
fully participate in the sessions?
8. with the "skill-based" training that emphasises interaction and participation?
9. with applying the business process to a specific product line?
10. with your ability to apply the knowledge and skills from the sessions?
11. with the overall logic and consistency to the series of sessions you attended?
12. that you received at least one specific skill or tool that will enable you to become more
effective in selling company products?
13. with the tools you have been provided to improve the satisfaction rating with your customers?
14. that there was a sufficient amount of time allocated to cover the content in the individual
sessions?
264
11. Overall, how do your customers rate the quality of the product(s)?
265
Poor
Fair
Good
Very Good
Excellent
12. What is it that you personally would most like to change about the product(s)?
13. Would your customers recommend the product(s) to a friend or associate?
a. Definitely Not
b. Probably Not
c. Not sure
d. Probably
e. Definitely
14. When was the last time you personally used the product(s)?
a. Under 1 month
b. 1 to 6 months
c. 6 months to 1 year
d. Not sure
1. What is the main retail category that your brick-and-mortar store(s) operates in?
266
267
For the most recent annual fiscal period for your primary Web site:
49. Approximate revenue growth (%)
50. Approximate total online sales (in US $)
51. Percentage of Web site customers that were repeat purchasers (%)
52. Advertising dollars as a percentage of sales dedicated to e-commerce (%)
53. Percentage of sales generated from affiliate program (%)
54. Approximate advertising budget (in US $)
55. Percentage of sales generated from outside the headquarters' country (%)
56. Indicate the extent to which your company's Web site has achieved the following outcomes
relative to its original objectives for the most recent annual fiscal period.
a. objectives Met
b. objectives Well above
c. objectives Well below
268
General inquiries into your e-commerce operations, focussed on your company's primary e-commerce
Web site.
63. Indicate when your company entered the online market, relative to the competition, in the
online retail category you specified at the beginning of the survey.
64. Indicate your current job title.
65. How many Web sites does your company currently operate?
66. How many of the Web sites you specified in question #1 are e-commerce sites (i.e., allow
online purchases)?
67. What is the main retail category that your Web site operates in?
Brick-and-Mortar Operations:
Regarding your brick-and-mortar operations (i.e., retail store(s) operating in the physical
marketplace):
70. Does your company operate one or more brick-and-mortar retail stores?
269
79. How many marketing agreements does your company have with search engines and portals
for its primary e-commerce Web site?
a. 1-3
b. 4-9
c. 10-19
d. 20-49
e. 50 or more
f. Do not know
80. On average, how many unique visitors does the primary e-commerce Web site receive each
month?
81. Is your primary e-commerce Web site the result of a joint venture or partnership with another
company?
82. Is your primary e-commerce Web site maintained by an outside firm?
1. Which of the following best describes the decision makers position within the company?
a. Owner
b. Chief Executive
c. Partner
d. Senior executive in charge of advertising, marketing, brand.
e. Executive in charge of advertising, marketing, brand.
f. Professional consultant
g. Finance/accounting/purchasing
h. Marketing
i. Office manager
j. Outlet / Site manager
k. Administrative assistant
l. Technical or IT professional
m. Sales professional
n. Other
2. In which City, State / Country is your office located?
3. How many employees work at this location?
a. 1 to 7
b. 8 to 19
c. 20 to 49
d. 50 to 99
e. 100 or more
f. Don't know/Not sure
270
271
272
SECTION 2
Competitive Environment
Adams Shoes
Competitive Environment
Luxury Goods
Leisure Goods
Footwear
Medical
Home
Furnishings
Durables
Clothing
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Disposable Income and Discretionary Spending (together with the consumers own assessment of future trends)
is measured during Consumer Surveys when consumers were asked specific psychometric questions which
tested and cross-checked the issues mentioned here. The data above is derived from statistically accurate social
/ income group, and full age spectrum, surveys.
Whereas in developed countries the Value Proposition of many brands have suffered in recent years
for a variety of reasons, in many developing country markets the Value Proposition of many branded
products have survived intact. Many consumer durables have seen their perceived worth diminished
during the last decade or so in North America and Europe. This is due to both the popularization of
the brands which make them less exclusive, and because they are perceived to be less costly to
manufacture and less durable. Some formerly high end brands have suffered for these reasons.
274
There are psychological reasons which currently make developing country markets more durable
1
than, for example, the United Sates or the United Kingdom markets and that is the general neurotic
(and sometimes psychotic) psychology of fashion and luxury goods consumers in some countries.
The increasingly neurotic nature of some of these customer bases is tending to divert expenditure
away from fashion into other neurotic activities.
In, for example the United Sates and the United Kingdom, neurotic behaviour patterns have
increasingly led sections of the population to succumb to eating disorders (which has led to obesity)
and impulsive disorders like drinking alcohol to excess. This has caused a rapid rise in over-weight
people (over 50% of the adult female population in the United Sates and the United Kingdom are
over-weight) and clinical obesity (over 35% of the adult female population in the United Sates and
over 25% of the adult female population in the United Kingdom are clinical obese). This means that
these individuals find it increasingly difficult to interact and interface with fashion products and as a
consequence they do not perceive themselves to be capable of engaging with much of the fashion
industry.
Neuroses play an important part in the purchasing behaviours of consumers, especially with fashion
and luxury goods, and these neuroses represent both opportunities and threats to fashion product
manufacturers and retailers.
The good news for fashion product manufacturers and retailers is that a neurotic customer base
makes it relatively easier for retailers to loosen the purses of buyers; the bad news is that a neurotic
customer base has a short attention span and is prone to be irrationally diverted to other neurotic
activity.
The terms neurosis and psychosis are used in their clinical context. The symptoms as described as follows:-
There are many forms of neurosis: obsessive-compulsive disorder, anxiety neurosis, hysteria, and a very wide variety of
phobias as well as obsessions. Effects of neurosis can involve anxiety, sadness or depression, anger, irritability, mental
confusion, low sense of self-worth, et cetera; behavioural symptoms such as phobic avoidance, vigilance, impulsive and
compulsive acts, lethargy, et cetera; cognitive problems such as unpleasant or disturbing thoughts, repetition of thoughts and
obsession, habitual fantasizing, negativity and cynicism, etc. Interpersonally, neurosis involves dependency, perfectionism,
feelings of isolation, socio-culturally behaviours, et cetera.
Individuals who score high on neuroticism are more likely than the average to experience such feelings as anxiety, anger, envy,
guilt, and depressed mood. They respond more poorly to environmental stress, and are more likely to interpret ordinary
situations as threatening, and minor frustrations as hopelessly difficult. They are often self-conscious and shy, and they may
have trouble controlling urges and delaying gratification. Neuroticism is a risk factor for the "internalizing" mental disorders such
as phobia, depression, panic disorder, and other anxiety disorders (traditionally called neuroses). Research has found that a
wide range of clinical mental disorders are associated with elevated levels of neuroticism compared to levels in the general
population. Disorders associated with elevated neuroticism include mood disorders, such as depression and bipolar disorder,
anxiety disorders, eating disorders, schizoaffective disorder, dissociative identity disorder, and hypochondriasis. Mood
disorders tend to have a much larger association with neuroticism than these other disorders. The remaining personality
disorders had either modest positive or non-significant (in the case of narcissistic and histrionic) associations with neuroticism.
Research has consistently found that on average, women score moderately higher than men on neuroticism. A study
examining gender differences in big five personality traits in 55 nations found that across nations the most pronounced gender
difference in personality was in neuroticism. In 49 of the 55 nations studied, women scored significantly higher in neuroticism
than men. In no country did men report significantly higher neuroticism than women, although in Botswana and Indonesia, men
were slightly higher than women. Gender differences in neuroticism within nations ranged from very small to quite large. The
differences were moderate to large in 17 countries, and small to moderate in 29 countries. In only seven countries Bangladesh, Tanzania, Ethiopia, Greece, Japan, Botswana, and Indonesia - were they negligible. African and Asian/South
Asian world regions tended to have smaller sex differences in personality overall than did western world regions (Europe, and
North and South America). Differences in the magnitude of sex differences between world regions were due to differences
between men in these respective regions. That is, men in western world regions were lower on neuroticism compared to men in
African and Asian/South Asian world regions. Women, on the other hand tended not to differ in neuroticism across regions.
Gender differences were also positively associated with measures of human development, that is, a long and healthy life,
access to knowledge and education, and decent standards of living. Sex differences became more pronounced in countries
with higher levels of human development. It is speculated that resource poor environments (that is, countries with low levels of
development) may inhibit the development of gender differences, whereas resource rich environments facilitate them. This may
be because males require more resources than females in order to reach their full developmental potential. Evolutionary
theories suggest that gender differences in neuroticism developed because men have evolved to be more risk taking whereas
women have evolved to be more cautious and hence more anxious and avoidant when faced with danger.
275
Market Opportunity
Analysis of the development of the retail trade and its life cycle
The choice of route to the market has opportunities and pitfalls, product and brand superiority is an
obvious competitive advantage which can be re-enforced through firm control of the retail channels.
However products and brands superiority is a medium and long-term strategy which can be unstable
and may be subject to short-term set-backs. Clearly strong brands with real product benefits have the
best competitive advantage, and for this reason the long-lived brands have consistently invested in
brand equity.
The low transaction cost routes to the market have clear benefits, but may suffer from sustainability
problems as the concept adopted is easy and inexpensive to replicate by competitors. The majority of
foreign brands operating in any one country tend to choose the Medium Added Value and Medium
Transaction Costs routes to the market as these are tested and known. However the use of novel and
innovative channels of distribution are being increasingly explored by the brand leaders. Newcomers
are less inhibited (than the entrenched brands) in trying and testing new distribution channels and
often new brands can achieve improved market penetration through imaginative distribution policies
and tactics.
The task of any brand seeking to enter these markets is to achieve an alignment with the distribution
and a synergy with consumer buying behaviours and expectations.
Analyse consumer buying behaviours
Evaluate consumer Shopping Experience criteria
Identify consumer channel preferences
Correlate consumer channel usage with purchasing criteria
Provide flexible and adaptable retail channel options
Observer changes in consumer buying behaviours
Adapt and respond to consumer buying behaviours
The above considerations are of course an analogy of the life cycle of particular channels. Failure to
respond and adapt in the above manner will inevitably result in the premature shortening of the life
cycle of any particular channel.
The purchasing criteria of consumers will be recognisable, and have been specified in other sections
of this study. The basic criteria are inevitably the same in most of the countries: Price
Availability
Brand
Quality
Shopping experience
Store Personnel
Store appeal
Promotional actions
Et cetera
How these criteria then interact with particular channels is the important issue; as is how these criteria
and the individual channel can be correlated and manipulated to maximise Added Value and minimise
Transaction Costs.
276
Markets
eCommerce
Telemarketing
Social Network
Sales Tactics
Consumer Party
Plan
Direct Selling to
Independent
Retailers
Multi-Brand Retail
Stores
Selling via
Exclusive
Distributors
Retail Franchising
National Brand
Licensing
Owned Exclusive
Brand Stores
AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
277
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
278
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2019
2020
2019
2020
2018
2017
2016
2015
2014
2013
2012
2011
2010
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
279
2018
2017
2016
2015
2014
2013
2012
2011
2010
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
280
Retailers - Joint
Ventures
Retailer - Foreign
controlled
Retailer - Domestic
owned & controlled
Wholesale - Joint
Ventures
Wholesale - Other
Wholesale - Foreign
controlled
Markets
Wholesale - Domestic
owned & controlled
Competitive Channels where more than one channels competes for the same consumer
segment. This permits dynamic pricing tactics, promotional opportunities and better inventory
management mechanisms.
Direct selling an Party Plan to access specific demographics (Married women, Older women,
women in rural locations)
Telemarketing which can access Housewives and women at their work place.
Social Network integration with mobile applications to promote specific events and shopping
experiences for the younger demographics.
281
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
The data above is derived from statistically accurate social / income group, and full age spectrum,
surveys.
282
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
Multi-channel Distribution
Non-Exclusive Distributor
Exclusive Distributor
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
283
284
Symbiotic marketing
Professional Management
Adaption of Distribution
Strategies
ERP methodology
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
The Trading Areas marked with an X indicate the need for the distribution strategies to be analysed in
depth to understand the implications.
Online
Catalogue
Mail Order
Independent Retailers
Regional Retailers
National Retailers
Independent Wholesalers
Regional Wholesalers
National Wholesalers
Purchasing power
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Purchasing power is defined by the relative discounts and terms of payment achieved that each level
of the supply chain can achieve when negotiating with their suppliers. In general the distribution and
retail buyers can usually negotiate more advantageous terms with suppliers from Asia than with
suppliers from North America or Europe.
285
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
286
Online Brands
Catalogue Brands
Regional Brands
Discount Brands
Niche Brands
National Brands
Global Brands
http://www.dg-di.eu/BASE_FOLDERS/World_Cities/GR.html
The overall Market Data covers each of the Greece major towns and cities can be found here:
Market Data Major Towns
Detailed Market Data covers each of the Greece major towns and cities can be found here:
Detailed Market Data Major Towns
287
Operations
1.
Brand Management
2.
Product Management
3.
4.
5.
6.
7.
8.
Customer Handling
9.
10.
Financial Controls
11.
12.
13.
14.
Distribution Control
15.
288
Buyers &
Consumers
1. Wholesalers
2. Trade Buyers
3. Retailers
4. Consumers
5. Consumers Age: <19
6. Consumers Age: 19-24
7. Consumers Age: 25-34
8. Consumers Age: 35-44
9. Consumers Age: 55-54
10. Consumers Age: 55-64
11. Consumers Age: 65+
12. Consumers Social Group: AB
13. Consumers Social Group: C1
14. Consumers Social Group: C2
15. Consumers Social Group: DE
Trading Area
1
2
Greece
Attik
Voria Ellada
Kentriki Ellada
Thessalonki
Athens
Ahaia
Irklion
10
Lrisa
11
12
Magnisa
13
vvoia
14
Dodeknisos
15
Srrai
289
Competitors
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
These surveys cover the Markets, Products, Competitors, Operations and Product Flows in terms of
the Suppliers, Distributors, Retailers, and End Users. Please read the Definition & Notes first.
http://www.dg-di.eu/BASE_FOLDERS/MarketResearch/MR_SURVEY_DEFI.htm
Competitors
Operations
Products
Trading Area
290
Competitors
Operations
Products
Trading Area
Industry Performance
Surveys of Industry & Retailer Performance:
Industry Performance
Buyers & Consumers
Competitors
Operations
Products
Trading Area
The surveys are best viewed as a graphic representation and users should use the normal facilities in
Excel to render the Excel spreadsheets as a graphic.
To understand the format and structure of these Surveys please consult the following schematic and
Survey Definitions
291
Detailed Market Data covers each of the Greece major towns and cities can be found here:
Detailed Market Data Major Towns
292
Consumer Attitudes
Products
Product Group #1
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #8
Product Group #9
Product Group #10
Product Group #11
Product Group #12
Product Group #13
Product Group #14
Product Group #15
Operations
1.
Brand Management
2.
Product Management
3.
4.
5.
6.
7.
8.
Customer Handling
9.
10.
Financial Controls
11.
12.
13.
14.
Distribution Control
15.
293
Buyers &
Consumers
1. Wholesalers
2. Trade Buyers
3. Retailers
4. Consumers
5. Consumers Age: <19
6. Consumers Age: 19-24
7. Consumers Age: 25-34
8. Consumers Age: 35-44
9. Consumers Age: 55-54
10. Consumers Age: 55-64
11. Consumers Age: 65+
12. Consumers Social Group: AB
13. Consumers Social Group: C1
14. Consumers Social Group: C2
15. Consumers Social Group: DE
Trading Area
1
2
Greece
Attik
Voria Ellada
Kentriki Ellada
Thessalonki
Athens
Ahaia
Irklion
10
Lrisa
11
12
Magnisa
13
vvoia
14
Dodeknisos
15
Srrai
294
Competitors
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
These surveys cover the Markets, Products, Competitors, Operations and Product Flows in terms of
the Suppliers, Distributors, Retailers, and End Users. Please read the Definition & Notes first.
Consumer Surveys
Surveys of Consumers and Buyers:
Consumer Surveys
Buyers & Consumers
Competitors
Operations
Products
Trading Area
295
Industry Performance
Surveys of Industry & Retailer Performance:
Industry Performance
Buyers & Consumers
Competitors
Operations
Products
Trading Area
The surveys are best viewed as a graphic representation and users should use the normal facilities in
Excel to render the Excel spreadsheets as a graphic.
To understand the format and structure of these Surveys please consult the following schematic and
Survey Definitions
296
Competitive Factors
Retail Brands
Retailers
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
LB = National Brand : RB = Regional Brand : GHS = Global High Street : GLux = Global Luxury
G/DS = Generic brands
297
% Market Share
Selling Space
SqM
Revenues
Stores
Competitive
Stance
Brand Research
Data Available
Type
The Survey results in this report cover the following Retail Brands in Greece:-
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Retailers
Trade Area #1
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
The Price Differentials shown here are Purchasing Power Parity weighted.
298
Product Group #1
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #8
Product Group #9
Product Group #10
Product Group #11
Product Group #12
Product Group #13
Product Group #14
Product Group #15
The Price Differentials shown here are Purchasing Power Parity weighted.
299
Trade Area #9
Trade Area #8
Trade Area #7
Trade Area #6
Trade Area #5
Trade Area #4
Trade Area #3
Groups
Trade Area #2
Product
Trade Area #1
Retailers
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
Ranking:
300
Product Group #9
Product Group #8
Product Group #7
Product Group #6
Product Group #5
Product Group #4
Product Group #3
Product Group #2
Product Group #1
Product Groups
Product Pricing
Retailers
Price
Discounting
Low Price
Market Median
Price
High Price
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
301
Product Quality
Retailers
Basic Quality
Median Quality
High Quality
Premium
Quality
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
302
Product Specifications
Retailers
Low Product
Specification
Undifferentiated
Product
Differentiated
High
Specification
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
303
Retailers
No Target
Audience
Some Targeting
Highly Targeted
Specific
Audience
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
304
Product Volumes
Retailers
High Volume
Median
Volumes
Low Volume
Restricted
Volume
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
305
Product Utility
Retailers
Necessity
Product
Common
Product
Discretionary
Product
Luxury Product
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
306
Product Maintenance
Retailers
Frequent
Cleaning
Average
Cleaning
Infrequent
Cleaning
Specialist
Cleaning
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
307
Product Merchandising
Retailers
Simple
Merchandising
Display
Merchandising
Featured
Complex
Proposal
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
308
Product Advertising
Basic
Advertising
Feature
Advertising
Retailers
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
309
Target
Advertising
Complex
Advertising
Retailers
Price
Product
Place
Promotion
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
310
Retailers
Brand name
Product Design
Shopping
experience
Advertising
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
311
Retailers
Functional
Symbolic
Experiential
Unknown
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
312
Retailers
Benefits
Differentiation
Resonance
Experience
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
313
Retailers
Average Value
Good Value
Excellent Value
Unspecified
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
314
Retailers
Me Too
Some
difference
Different
Unique
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
315
Retailers
Value
Product
Brand
Status
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
316
Communications Tactics
Retailers
Sales
promotions
Public relations
General
advertising
Direct
marketing
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
317
Advertising Tactics
Retailers
Price
Product
Inclusiveness
Exclusivity
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
318
Retailers
Brochures &
print
Press releases
Audio-Video
Press Kits
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
319
Retailers
Very visible
Visible
Not really
visible
Unspecified
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
320
Retailers
Average POS
Good POS
Excellent POS
Unspecified
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
321
Merchandising
Retailers
Average
Merchandising
Good
Merchandising
Excellent
Merchandising
Unspecified
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
322
Product Display
Retailers
Average
Product Display
Good Product
Display
Excellent
Product Display
Unspecified
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
323
Middle range brands: These brands bring trends to the high street; they are design-led and
are sold at high street prices.
Low cost brands: Low cost brands offer contemporary designs and current trends at low
prices, especially distributed in department stores and supermarkets.
Retail Level
There are three types of retailers: Vertically-integrated Retailers; Independent Retailers; and
Department Stores.
Vertically-integrated retailers operate wholly-owned retail outlets and sell only the brands
selected by that company. Vertically-integrated retailers tend to have an international
presence. Many high range designer brands, middle range high street brands and low cost
brands are vertically integrated. They are located on main streets and in shopping centres; in
addition high range brands and middle range high street brands sell their ranges in
department stores.
Independent retailers sell a selection of brands and are independent of the brands they sell.
Independent retailers can take many forms. Their stores tend to sell middle range high street
brands, however some may sell high range designer brands. Independent retailers tend to
specialise in one type of product category, and generally provide their customers with more
choice and variety for those categories. Independent retailers may own and operate a chain
of stores under a common fascia and are typically known as branded resellers. Other
independent retailers may be small local boutiques. Independent stores are mainly located on
the main shopping street in towns and cities and in shopping centres.
Department stores are quite different. They sell a wide variety of products from clothing to
home-wares, and electrical appliances to cosmetics. In terms of branded products,
department stores tend to sell high range brands and/or middle range high street brands; low
cost brands are rarely sold in department stores. Department stores are generally located in
central locations in cities and large towns.
A department store is a hybrid retailer. As detailed in subsequent paragraphs, branded
products are available in their stores from vertically-integrated companies locating in the store
through a concession arrangement and/or is own-bought and resold by the stores
themselves. A few department stores also sell own-brand labels.
Concession arrangements occur where vertically-integrated branded companies have an
agreement to sell in a dedicated area of a department store. Many of these are the same
brands sold in high street vertically-integrated stores. In effect, the department store is the
324
Brand Competition
At the retail level brand competition tends to differ by type of retailer. Vertically-integrated international
brands compete at a high level by promoting their branded product internationally.
Independent retailers and department stores compete through the range of brands and products they
stock in their stores, and by building store image. In order to get the brands they want into their store,
department stores further compete on the commission rate, location in store and merchandising.
Branded reseller chains, for example, sports retailers, also compete on store reputation through store
advertising and promotions etc. Department stores compete on store image by creating a shopping
experience and through promotional activity to attract footfall.
The past decade has seen a big increase in the number of brands available, especially in terms of the
location density of the global brands.
Value
Retailers within the same product categories compete on value, i.e., the combination of price, design
and quality. Retail competition tends to start with competition among different brands within the same
range, be it high range, middle range or low cost. Once a brand positions/markets itself within one of
the product categories, it competes mostly with other brands within the same range by pricing at a
level that reflects the quality, design and brand image that has been created.
In terms of pricing, vertically-integrated retailers operate a system of national pricing and thus at a
retail level compete more on quality of service, shop fit etc. Vertically-integrated brands are
increasingly also offering on-line shopping.
Low cost brands primarily compete on price by offering contemporary designs at low prices. The
ultimate goal of these brands is to set their prices low. Consumers are looking for value for money
when purchasing these brands.
325
Location
Location is of critical importance in retail. In most countries, despite the growing number of out of town
shopping centres, the main street is still a major draw for retailers. Thus, there is demand and
competition among all retailers for prime main street locations.
Vertically-integrated international brands sold throughout the world and the outlets of these brands
are similar in design and layout. Independent retailers and department stores can differ somewhat in
different areas.
Although the international brands enjoy economies of scale, local conditions in each country are often
quite different, and local retailers can often profit by being more orientated to local markets. Retailers
operating in some countries tend to have larger selling areas and therefore can offer a broader
product range.
Supply Chain
The supply chain and, in particular, distribution for each type of retailer and supplier, tends to vary.
Vertically-integrated branded companies supply products internally to retailers, while other brand
companies supply products through wholly-owned wholesalers, agencies or third party distributors.
Products are typically designed by the brands themselves and manufactured mostly in the Far East,
and sometimes in Europe or South America. In certain instances, the manufacturer is owned and
operated by the brand and in other instances it is outsourced by the brand. Some brands use buying
teams or groups to source their products around the world and are not aligned to, or contracted, with
any manufacturer; they may also have different buying teams for different markets. Occasionally,
brands outsource part of their manufacturing operations to distributors.
Vertically-integrated branded retailers and concessions in department stores source their product
from their parent company. Vertically integrated brands internalise the supply, wholesale and retail
aspects of their supply chains. The retailers and wholesalers are part of the branded company and
operate under the instruction of the parent company. The brand supplies its products to its stores and
concessions in department stores. There is no intermediary or third party involved in the supply chain.
Own-bought product suppliers to independent stores and department stores, use wholly-owned
distributors, agencies and/or third party distributors in each country. Which avenue a supplier takes
ultimately depends on how the branded company wishes to operate its distribution and the benefits or
service each distribution type can offer.
Large multinational brands tend to have wholly-owned wholesalers based in the larger countries.
Some brands have two separate wholly-owned wholesalers for each Trading Area; others have one
wholly-owned wholesaler for the two jurisdictions. In some cases, rather than an office, the brand has
a country representative, an employee of the brand, to manage the supply. Most wholly-owned
wholesalers use selective distribution arrangements, i.e., supply to a number of different independent
stores and department stores. For example, a wholly-owned wholesaler may supply that brands retail
chain plus to other distribution chains. In the case of some brands, there may be an exclusive
distribution arrangement whereby one retailer and its stores, or a chain, receives exclusivity for the
product in the country.
Some brands distribute through independent agents. The agent places the order to the brand on
behalf of the retailer and receives a commission in return for placing the order. The agent does not
buy the product and, therefore, in some sense the agent is an arm of the brand. Retailers may
negotiate terms and prices either with the agent or the branded supplier; at what level the retailer
negotiates terms varies depending on retailer size. Most agents distribute more than one brand.
Branded companies and retailers tend to prefer not to deal with a middle man, therefore, these types
of agency agreements are rarely found in the market.
Some brands distribute their product through third party distributors. Third party distributors buy
products from the brand and resell it to retailers in the country, i.e., they are the customers of the
brand and have an account with them. Therefore, third party distributors take on a business risk. For
326
Nature of Competition
Ultimately suppliers compete for consumer demand by building brand awareness and through
interactions with retailers. However, some suppliers compete mostly at the brand level. Brand
competition is a critical feature of competition at supply level. Brands compete by establishing a brand
that reflects the image and category in which they wish to operate; high range, middle range or low
cost. They will also price their product in a way that reflects the category and brand image they have
created. Where they sell through independent retailers and department stores, they generally choose
retailers whose own image is aligned to that of the brands image.
High range brands compete with each other by establishing a desirable brand through
expensive image building mechanisms.
Suppliers to low cost retailers (i.e. manufacturers in the Far East and South America etc.)
compete on price.
Suppliers also compete in their interactions with retailers, in terms of space, commission, and
location in the store. For example, concessions in department stores will compete for the best
location in the store, i.e., where there is the most footfall. Suppliers also compete to have their
products sold in the signature stores in a city.
Retailer Reaction
The exchange rate fluctuations and the global recession have occurred simultaneously and it is
therefore not clear how much of the decline in sales is attributable to the recession and how much to
the exchange rates.
In response, retailers have tried to cut costs by reducing the cost of doing business and the cost of
product. They have reduced the cost of doing business by reducing opening hours, working hours and
pay.
With respect to cost of product, retailers can either try to renegotiate a price with their supplier, switch
supply by switching brands, or by-pass the current branded supplier and source product from an
alternative supplier.
The extent of exchange rate pressure and reduced footfall has driven retailers to go back to their
suppliers, be it the manufacturer, wholly owned wholesalers, third party distributors or an agency,
requesting price reductions. Renegotiating prices with suppliers may be difficult due to the seasonality
of retailing and limited buyer power of stores in some countries.
Generally, retailers organise their stock for at least the following two seasons, or perhaps even for the
coming year. Thus retailers decide on their stock and volume of purchases between six months to a
year in advance; simultaneously price for the product is agreed typically in US$. In addition, in order
to minimise currency risk, some retailers may hedge their currency at that time. Thus, due to these
agreed prices and volumes, retailers are finding it difficult to renegotiate price with their suppliers.
Retailers will, at the time of agreeing price with their supplier, set their retail prices. Given that this
may be done a number of months in advance, by the time product appears on the shelf, exchange
rates may have changed. This effect should diminish as retailers purchase the next round of stock
which will be based on more recent exchange rates.
The ability of a retailer to negotiate price reductions will depend also on its importance to the supplier,
i.e., the extent of its buyer power. National retailers are often small in international terms.
Switching brands may not be a possible option if the brand is a must have brand for the retailer, for
example, consumers expect all sports stores to have certain international sports brands. It will
negatively affect the retailers image if it does not have the must have brands for certain categories of
products.
Retailers, independent stores and department stores contend that sourcing product by by-passing the
current source of supply, i.e., the wholly-owned wholesaler, third party distributor or agency, is
difficult. They state that the head office or equivalent regional distributor will direct the retailer back to
the designated national distributor. Most international brands use wholly-owned wholesalers, thus the
alternative source of supply is simply a different arm of the same company. In some cases retailers
have been successful in renegotiating the currency in which they pay, but in most cases this has been
refused.
Retailers attempts to get better prices following currency depreciation may be more difficult in some
countries. Some retailers that operate in several countries may be able to benefit from sourcing
product for their stores in one country through their supply chain in another country. Thus, any
potential benefits arising from the changes in one currency may be spread across that retailer outlets.
For department stores and independent retailers, alternative sources of supply, such as the grey
market, may be an option. However, products from the grey market are seldom the latest design and
may be limited in the range and options it comes in. It also has limitations in terms of consistency of
supply, and thus may not be an adequate option.
The individual stores of vertically-integrated middle range retailers do not have any alternative option
to source product, as they must source their product internally. Prices in these stores are not set by
the retailer but the head office of the brand and therefore they are constrained by the controlled
supply channel in which they operate. These vertically-integrated brands are large international
brands that operate on a large scale. Any national market is likely represents only a small portion of
their overall business.
328
Supplier Reaction
Suppliers responses to increased pressures from retailers to reduce prices will depend on their ability
and willingness to reduce prices.
Distributors of brands under pressure from retailers to reduce prices will themselves be limited in their
ability to reduce prices to the extent that they can renegotiate a price reduction with their upstream
supplier. Brands source product directly from their own, or contracted, manufacturers. This is often
done in the Far East or other countries and therefore they operate in a number of currencies. Supplier
costs are therefore largely in various exchange rate susceptible currencies. In reality, national
suppliers may have a small portion of costs in their own currency and may not be able to pass on the
current expectation that exists in the market.
In addition, brand companies tend to be vertically integrated upstream through contracted
manufacturers and downstream through wholly-owned retailers and/or distributors; due to this tight
distribution arrangement, the seasonality, and likely hedging aspects of suppliers operation, the
extent to which they can quickly react to changes in currency fluctuations will be limited.
Overall, suppliers are being negatively affected by falling sales and the depreciation of operating
currencies and therefore they do not want to lose revenue in the market as well. Some retailers stated
that the currency depreciation warranted a price increase in their country but that branded companies
would find it difficult to increase prices in that country because of recessionary pressures.
The bigger the market, the riskier it is to increase prices. In addition, branded companies tend to
operate across a number of countries.
Conclusion
Differences in price level between different national markets have to some extent always been
present, and changes in the differences in price level arise, amongst other reasons, due to currency
movements. Since 2008 branded goods prices in one country have fluctuated in comparison with
other countries. The effect of the pricing changes is driving consumers to change their shopping
behaviour to the detriment of the majority of retailers. Low cost retailers however have not been as
negatively affected; what they may have lost in terms of reduction in consumer spending they have
gained from price conscious consumers switching to them. Among other things, retailers have
responded by increasing sales/discounts and promotions, and in some instances re-ticketing items to
bring down in price.
However, the extent of the response of retailers is limited by the extent to which they can reduce their
costs of doing business, for example, reducing opening hours, and their cost of product. The ability to
reduce cost of product is constrained by three elements; the seasonality of the market, limited buyer
power and the ability to switch sources of supply.
Stocks and prices are determined six to 12 months before they appear in store. In most countries
retailers are relatively small internationally.
329
Seasonality in the Market: The prices paid by retailers to suppliers were set six to twelve
months ago and renegotiating those prices is difficult, though retailers have indicated that
they have had some limited success.
Limited Buyer Power: The extent to which retailers can negotiate lower prices is dependent
on their buyer power. Stores that have access to stock through related overseas stores have
slightly more scope to access products at lower prices. In some instances retailers have been
able to switch to paying in other currencies but in the main they have not.
Switching Sources of Supply: The ease with which retailers may switch to alternative bettervalue sources of supply depends upon the type of product that they retail. Low cost retailers
can most easily switch sources of supply, though with a time lag (due to seasonality). Such
retailers are not so aligned with any particular manufacturer. The supply chains of the midrange retailers who operate wholly-owned retail outlets and sell a single product brand are far
less flexible. These retailers tend to have an international presence; purchasing and
distribution arrangements for the outlets in any particular country are typically determined
centrally. Retailers who resell a range of brands (e.g. supermarkets and department stores)
also have limited ability to switch sources of supply. Such retailers argue that they have longterm relationships with branded product suppliers which they need to maintain. Alternative
sources for a particular brand cannot be relied on to come in the full range of products or to
be from the current season. A notable feature of retailing is the apparent low level of
alternatives for many retailers. With the exception of low cost products, competition is largely
about branding and image, within a particular price/quality range. Thus, it is difficult for stores
with on-going relationships with brands to switch to alternative brands. As the seasons roll on
330
331
Market
Distributor
Domestic
owned
Distributor
Direct
investment
Distributor
Joint Ventures
Distributor
other
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
332
Market
Retail
Domestic
owned
Retail Joint
venture
Retail Direct
investment
Retail other
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
333
%
%
%
%
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
334
%
%
%
%
%
Disadvantages
Direct investment
Control of Costs, Brand,
Distribution
Domestic no direct
investment
Domestic No
Distribution control
Advantages
Direct Retail
Investment
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
335
Unspecified
Domestic Distributors
Joint Ventures
Franchisees
Direct Retail
Investment
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
336
Unspecified
Domestic Distributors
Joint Ventures
Franchisees
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
337
Vulnerabilities
Survivability
Opportunities
Competitiveness
Dynamism
Start-up Costs
Start-up Costs, Initial Investment and Product Launch Balance sheet
Direct and Indirect Market Entry
There are three scenarios examined in the data below, A Brand / Franchise Store launch, and Indepe
ndent Store launch (probably carrying Branded product lines) and the use of a Distributor or Exclusive
Wholesaler to introduce a new Brand to the country concerned.
The data provides the following matrices:1) Time from Start to Store Opening
2) Start-up Investment Cost (excluding Inventory)
3) Market Entry Investment, by type of Market Entry, with Economies of Scale:
A Cost comparison given for 1, 3, 5, and 10 stores on the grounds that there may be some cost a
dvantages associated with the economies of scale of opening multiple outlets.
Inventory Costs
The Start-up costs data excludes the initial Inventory investment. This is because there are a large
number of ways in which Franchised Brands, Independent Retailers, In-Store Departments and sales
via Distributors are financed.
Some Franchised Brands offer Consignment deals, or Sale-or-Return deals, or inventory financing.
Similarly there are inventory financing deals available for In-Store Departments.
338
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
The data above is derived from trade surveys.
339
Cash-in-Hand
Marketing
IT Equipment &
Services
Business Expenses
cost (000)
Store fitting
selling space
Property Deposit
100 SqM
Rental Month 1
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
The data above is derived from trade surveys.
340
Total Independent
Store Start-up Cost
Cash-in-Hand
Marketing
IT Equipment &
Services
Business Expenses
cost (000)
Store fitting
selling space
Property Deposit
100 SqM
Rental Month 1
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
341
Cash-in-Hand
Marketing
IT Equipment &
Services
Business Expenses
cost (000)
Store fitting
selling space
Deposit
25 SqM
Rental Month 1
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
342
Distributor / Exclusive
Wholesaler Sign-up
Miscellaneous
Public Relations
Marketing Support
Banking
IT Services
Business Expenses
Cost (000)
Weeks
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
343
Total Time
Launch Delay
Systems Installation
& Staff training
Store fitting
Regulatory
Requirements
Premises Acquisition
Initial Contractual
Negotiations
Weeks
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
344
Total Time
Launch Delay
Systems Installation
& Staff training
Store fitting
Regulatory
Requirements
Premises Acquisition
Initial Contractual
Negotiations
Weeks
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
345
Total Time
Systems Installation
& Staff training
Marketing Support
Regulatory
Requirements
Financial
Arrangements
Initial Contractual
Negotiations
10 Outlets
5 Outlets
3 Outlets
Single Store
10 Outlets
Start-up 25SqM
5 Outlets
100SqM
3 Outlets
100SqM
Single Store
Brand In-store
10 Outlets
Independent Store
5 Outlets
000
Brand Store
3 Outlets
Per outlet
Single Store
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
346
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Fr
Ac
Fr
Ac
Fr
Ac
Fr
Ac
Fr
Ac
Fr
Ac
Fr
Ac
Fr
Ac
Fr
Ac
Fr
Ac
Fr
Ac
Fr
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
1 Revenues
2 Orders
3 TOTAL SALES
Ac
'000
0
0
37 Total Payments
RECEIPTS
4 Sales receipts
5 Sales debtors
6 Loans / Grants received
7 Miscellaneous income
8 CASH ACCOUNT TOTAL
9 Capital
10 Asset & other disposals
11 TOTAL RECEIPTS
PAYMENTS
12 Finished Materials Cost
13 Fuel Cost
14 Electricity Cost
Total Input Materials + Energy
15 Costs
16 Payroll Costs
17 Wages
18 Directors' Remunerations
19 Employee Benefits
20 Employee Commissions
Total Employees
21 Remunerations
22 Total Rental & Leasing Costs
23 Total Maintenance Costs
24 Services Purchased
25 Communications Costs
26 Miscellaneous Expenses
27 Sub Contractors
Total Miscellaneous
28 Operational Costs
29 Total Sales Costs
Total Distribution and Handling
30 Costs
31 Total Advertising Costs
32 Total After-Sales Costs
Total Research and
33 Development Expenditure
34 Interest
Net Taxes & Duties (Value
Import,
etc.) Security,
35 Added,
Tax (Income,
Social
36 etc.)
347
0
0
0
0
Fuel Cost
Electricity Cost
Total Input Materials + Energy Costs
0
0
Wages
Directors' Remunerations
Employee Benefits
Employee Commissions
0
0
0
Communications Costs
Miscellaneous Expenses
0
0
0
0
0
0
0
0
0
Depreciation: Structures
62 Trading Profit
0
0
Total Depreciation
Sub Contractors
0
0
Services Purchased
0
0
Maintenance: Structures
0
0
0
0
Payroll Costs
Year 3
'000
57 Operating Profit
58
59
60
61
Year 2
'000
0
0
63 Interest Paid
64 Non-trading Income
65 Pre-tax Profit
348
BALANCE SHEET
Year 1
'000
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Year 2
'000
Year 3
'000
Year 4
'000
Year 5
'000
Year 6
'000
Year 7
'000
Total Retirements
Total Assets
Creditors
Short Term Loans
Miscellaneous Current Liabilities
Persons
32 Workers
33 Total Employees
349
Persons
Persons
Persons
Persons
Persons
CASHFLOW DETAILS
Initial Investment=
$150,000
$7,484
DISCOUNT RATE
Revenues in year 1=
$240,000
Approach(1:Direct;2:CAPM)=
50%
10
$100,000
40%
1. Discount rate =
2
10%
2a. Beta
0.9
b. Riskless rate=
8.00%
5.50%
10%
d. Debt Ratio =
30.00%
e. Cost of Borrowing =
9.00%
10.69%
WORKING CAPITAL
Initial Investment in Work. Cap=
$15,000
25%
100%
GROWTH RATES
1
10
Revenues
Do not enter
10.00%
10.00%
10.00%
10.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Fixed Expenses
Do not enter
10.00%
10.00%
10.00%
10.00%
0.00%
0.00%
0.00%
0.00%
0.00%
10
Default: The fixed expense growth rate is set equal to the growth rate in revenues by default.
YEAR
0
1
2
3
INITIAL INVESTMENT
Investment
$150,000
- Tax Credit
$15,000
Net Investment
$135,000
+ Working Cap
$15,000
+ Opp. Cost
$7,484
+ Other invest.
$0
Initial Investment
$157,484
RESIDUAL VALUE
Equipment
Working Capital
OPERATING CASHFLOWS
Lifetime Index
Revenues
-Var. Expenses
- Fixed Expenses
EBITDA
- Depreciation
EBIT
-Tax
EBIT(1-t)
+ Depreciation
- Work. Cap
NATCF
($157,484)
Discount Factor
1
Discounted CF
($157,484)
$0
$0
1
$240,000
$120,000
$0
$120,000
$30,000
$90,000
$36,000
$54,000
$30,000
$45,000
$39,000
1.10685
$35,235
$0
$0
1
$264,000
$132,000
$0
$132,000
$0
$132,000
$52,800
$79,200
$0
$51,000
$28,200
1.225116923
$23,018
$0
$0
1
$290,400
$145,200
$0
$145,200
($4,000)
$149,200
$59,680
$89,520
($4,000)
($38,400)
$123,920
1.356020666
$91,385
$0
$0
1
$319,440
$159,720
$0
$159,720
$0
$159,720
$63,888
$95,832
$0
$7,260
$88,572
1.500911474
$59,012
$0
$0
1
$351,384
$175,692
$0
$175,692
$0
$175,692
$70,277
$105,415
$0
$7,986
$97,429
1.661283865
$58,647
$0
$0
1
$351,384
$175,692
$0
$175,692
$0
$175,692
$70,277
$105,415
$0
$0
$105,415
1.838792046
$57,329
$0
$0
1
$351,384
$175,692
$0
$175,692
$0
$175,692
$70,277
$105,415
$0
$0
$105,415
2.035266976
$51,794
$0
$0
1
$351,384
$175,692
$0
$175,692
$0
$175,692
$70,277
$105,415
$0
$0
$105,415
2.252735252
$46,794
$0
$0
1
$351,384
$175,692
$0
$175,692
$0
$175,692
$70,277
$105,415
$0
$0
$105,415
2.493440014
$42,277
$100,000
$87,846
1
$351,384
$175,692
$0
$175,692
$0
$175,692
$70,277
$105,415
$0
$0
$105,415
2.759864079
$106,259
Investment Measures
NPV =
$414,267
IRR =
42.43%
ROC =
75.60%
$150,000
$30,000
$120,000
$120,000
$0
$120,000
350
$124,000
$0
$124,000
$124,000
$0
$124,000
$124,000
$0
$124,000
$124,000
$0
$124,000
$124,000
$0
$124,000
SWOT Analysis
SWOT analysis by type of Market Entry
Entry via Company Owned Retail Stores
Strength
Weaknesses
Control of Brand
Control of Costs
Control of Profitability
Opportunities
Threats
Local competitors
Weaknesses
Opportunities
Threats
351
Weaknesses
Opportunities
Threats
Weaknesses
Control of Brand
Opportunities
Threats
352
Weaknesses
Opportunities
Threats
Weaknesses
Opportunities
Threats
353
Competitive Analysis
Retailers
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
354
Customer service
Expansion plans
Marketing activities
Pricing structure
Product criteria
Product design
Brand quality
Product Lines
Sales
Operational strengths
Brand strengths
Locations
Retail Brands
Relative difficulty
Low
Markets
Moderate
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
355
High
Brand Concept
A brand is defined as: A name, term, sign, symbol, or design, or combination of them, intended to
identify the goods and services of one seller or group sellers and to differentiate them from those of
competitors.
Branding thus is a means to distinguish one product from another and these differences may be
functional, rational, or tangible and fundamentally related to product performance of the brand.
In the developing countries a Brand is frequently no more than a European sounding name on a
copy of some European design. This use of facsimiles by developing country producers has shown
the limitations of their business models.
It is necessary to distinguish a Brand from a Label. Labels or Own-Brand Labels tend to be generic
or standard products which simply bear the label or identification of a supermarket or some other
retailer. In general labels do not have the same status as brands in the mind of consumers, albeit the
quality and designs may have little differentiation; however consumers expect labels to have lower
price as than brands.
Brand Equity
Brand equity is intangible added value endowed to products and services. This value may be
reflected in how consumers think, feel, and act with respect to the brand, as well as the prices and
price premiums demanded by a brand, market share, and ultimately the profitability that the brand
commands for the firm. Brand equity is an important intangible asset that has image and financial
value to the firm. In the regional markets there is no extended history of brand image creation and it is
for this reason that developing country companies have to be particularly attentive to the
enhancement the brand equity of their products.
356
Brand Knowledge
Brand knowledge consists of all the thoughts, feelings, images, experiences, beliefs, and so forth, that
becomes associated with the brand. In particular, brands must create strong, favourable, and unique
brand associations with the target customer base. Brand knowledge is low in many developing
country markets and this presents opportunities to new brands entering those markets.
Market
C1
%
C2
%
< 19
19-24
25-34
35-44
45-54
55-64
65+
%
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Brand knowledge and awareness is assessed during Consumer Surveys when consumers were
asked specific questions to test the strength of their awareness of named brands. The data above is
derived from statistically accurate social / income group, and full age spectrum, surveys.
357
In the regional markets insufficient attention has been paid to these issues and this has generally led
to the lack of global competitiveness of regional brands.
358
Market
C1
%
C2
%
DE
%
19-24
%
25-34
%
35-44
%
45-54
%
55-64
%
65+
%
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Brand loyalty is assessed during Consumer Surveys when consumers were asked specifically for the
brands they purchased and then specifically if they would purchase the same brand(s) again. The
data above is derived from statistically accurate social / income group, and full age spectrum,
surveys.
359
Market
AB
C1
C2
DE
< 19
19-24
25-34
35-44
45-54
55-64
65+
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Perceptions of Brand Quality is assessed during Consumer Surveys when consumers were asked
specifically if they believed that the brands they purchased were of a better product quality than other
or cheaper brands and if in general they believed that expensive brands were of a better product
quality. The data above is derived from statistically accurate social / income group, and full age
spectrum, surveys.
360
Brand
Awareness
Brand Recall
Packaging
Brand
Recognition
User
imagery
Usage
Imagery
Brand Image
Price
Brand
Knowledge
Brand
Associations
Favourable
Associations
Strength of
Associations
Uniqueness
of
Associations
Attributes
Benefits
Attitudes
361
Nonproduct
Related
Product
Related
Brand Resonance
The brand resonance model also views brand building as an ascending, sequential series from
bottom to top.
Brand resonance refers to the nature of the relationship that customers have with the brand and the
extent to which customers feel that they are in sync or empathetic with the brand.
Producers in the regional markets have to decide with which brand concept they wish to align. They
can seek to produce a Global brand or they can seek to produce a Market Segmented brand. What
corporate history has suggested is that companies wishing to engage both concepts often fall
between both stools.
362
363
Market
Attracted to Local
Brands
Attracted to Global
Brands
Styling
Acceptance
Style
Feelings
Judgments
Imagery
Performance
Salience
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Brand Resonance is assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.
364
Brand Awareness according reflects the extent to which people can either remember or
recognize a brand. When people think about brands in a product category, those come to
mind represent recall brand awareness; they are recalled based only upon a category cue. If
someone is shown a list of brand names or pictures of packages, those that can be identified
represents recognition brand awareness.
Brand Salience depends upon awareness, but reflects the relative strength of that awareness
in relation to the target markets awareness of other brands in the category. This relationship
will be reflected in the relative relationship between what is known as top -of- mind
awareness and all the other brands in the category of which someone is aware.
Brand Preference, like brand salience, can be an indicator of the strength of brand equity.
Brands that are preferred are likely to enjoy greater equity than those that are not. Preference
for a niche brand may be high in its market segment, but relatively low in the global market as
a whole.
365
In order to keep or develop the value of the symbolic message of the brand, the brands
image management should be focused on a small number of distinct styles;
The consumer buys or uses branded products of different types and styles;
An effective brand image developed through constant re-designs, allows the brand to achieve
image coherence and to capitalize on it in the market by building a global presence.
The adoption process of product brands reflects the significant impact of the popular and
cultural image that a brand transmits as well as its inherent identification potential (social,
cultural and economic).
Recognizing this, consumers search for brands that approximates with their own aspirations, needs
and wants; rather than that of the stereotypical people who may have appeared in advertisements
and the media. This is especially the case in markets which have traditionally been less exposed to
global culture. Whereas the upper middle classes in the developing countries are increasingly
exposed to global stereotypes, nonetheless the traditional aspects of these markets frequently
outweigh the global imagery.
366
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Consumer confidence is assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.
Consumer Confidence
Consumer Confidence relates to Spending Attitudes in relation to the general Economic situation; the
definitive gauge of consumer sentiment around economic and social concerns across countries.
After periods of speculation and uncertainty around the economic conditions, at some stage
consumers reach a state of resignation to the economic realities and the majority will then usually
adopt rational spending levels for various product groups.
Consumer confidence worldwide often fluctuates wildly as relatively uninformed consumers attempt to
make sense of media coverage of economic circumstances, the propaganda of their political masters,
and their own empirical experience of the situation.
367
368
1. The relatively high portion of disposable income spent on Food and Housing.
2. The relative pricing of branded products.
3. The effectiveness and physical distribution of retailers, especially in large countries with
limited infrastructure.
4. The pressure on the gross margins and therefore the profitability of the entire supply and
distribution chain.
5. The difficulty for large scale retail operations and multiples to realise a good level of
profitability.
6. The national shopping habits of consumers which sometime inhibit the impulse buying of
products.
7. The influence of family and cultural imperatives on the younger consumer age groups whom
tend to represent the major segment of the brand market.
8. Consumer attitudes and influences when shopping as a family group as opposed to shopping
individually or with peer group.
369
Market
Special occasion
Everyday
Work
25 + Years old
Special occasion
Everyday
Work
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Usage & Purpose of purchases is assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above is derived
from statistically accurate social / income group, and full age spectrum, surveys.
11. Perception of Designer v- Standard / High Street Brands. In developing markets there are
growing perceptions that Designer Brands do not offer any particular quality benefit over
Standard / High Street Brands.
12. There is a general dislike of Internet shopping in developing countries.
370
Celebrity endorsements in certain countries are usually limited to local brands or certain types
of international brands, namely, sportswear, denim, and youth casual wear.
Celebrity endorsement
Celebrity endorsement (Actors / Sports stars / Models / Movies Stars) importance is assessed
during Consumer Surveys when consumers were asked specific psychometric questions
which tested and cross-checked the issues mentioned here. The data above is derived from
statistically accurate social / income group, and full age spectrum, surveys.
Market
Celebrity
Celebrity
Endorsements
Endorsements
irrelevant
important
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Celebrity endorsements were assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above is derived
from statistically accurate social / income group, and full age spectrum, surveys.
371
Market
International Brands
Local Brands
Planned Buying
Impulse Buying
Convenience
Brand name
Value
Price
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Purchasing Criteria and Habits are assessed during Consumer Surveys when consumers were asked
specific psychometric questions which tested and cross-checked the issues mentioned here. The
data above is derived from statistically accurate social / income group, and full age spectrum,
surveys.
Brand Selection
Consumers who purchase products from Exclusive brand outlets tend to visit the store specifically
because they are attracted to that brand, not for reasons of brand comparison.
In multi-brand outlets the majority of women select and purchase a particular brand because of the
shopping experience. Overall preference for one brand over another is based on the shopping
experience generated by the chosen brand.
372
Market
Promotional Staff
Product Packaging
Store Merchandising
Press Advertising
In Store Promotions
Presents
Loyalty Card
Advertising offers
Brand Loyalty
Price
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Purchase Drivers are assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.
373
Markets
25 + Years old
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Brand Perceptions are assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.
374
Markets
Other
Promotions
Customer Service
Location
Atmosphere
Design
Price
In developing countries there is rapidly growing youth population with a high level of education and
exposure to global imagery. This demographic is particularly susceptible to brand propositions. Thus it
is interesting to analyse the consumer needs of this demographic, as this will be the prime target for
any new brand.
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Branded products are assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.
375
Markets
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
376
Other
Promotions
Customer Service
Location
Atmosphere
Design
Price
Whilst is may be considered that media advertisements would influence consumers, in fact this was
not the case as some retailers use substantially less media advertising than others. What was evident
was that in-store promotions frequently play an important role. Survey data suggests the following:-
Product Price
Product Design
Store Atmosphere
Store Location
Store Service
Product Promotions
The global players have spent decades working on these areas, and many of the global players have
had only marginal success. The marginality of their success is measured in their Return on
Investment, which has been only moderate in the past, and had indeed shown decline since 2008.
For regional brands to succeed they will need to re-think the traditional brand retail model.
377
Product Price. The major high street brands have firm control of product pricing levels.
Product Design. The major high street brands decide themselves on what is desirable at any
particular moment in time.
Store Location. The major high street brands have the market power to command the prime
locations.
Product Promotions. The major high street brands have the market power to beat any
competitor in promotional activity.
Store Atmosphere. New brands can compete here by catering to specific consumer
demographic and market segments.
Store Service. New brands can compete here by catering to specific consumer demographic
and market segments.
378
379
There are many similar ways in which a small brand can outmanoeuvre the larger, more bureaucratic,
brands.
Retailers
Average Brands
Good Brands
Excellent
Brands
Unspecified
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
380
Niche Markets
There are niche markets, niche re-vitalisation and niche development; and there is always some
opportunities in each area.
Geographic Niches
Districts with limited competition often provide strong retail niches where it is very easy for shoppers
to find a retail brand locations isolated from competitors. Downtowns areas are often available for
strong niche locations. Niche locations can also provide cost advantages because retail space is
usually affordable and staff wage expectations are lower.
Customer Segment & Demographic Niches
The identification of customer segment niches requires local knowledge. The possibilities include: Ethnic demographics
Office workers
Older customers segments
Sports enthusiasts
Students
Tourists
381
Brand Superiority
Brands have to offer potential buyers as many benefits as possible; especially, product superiority,
product differentiation, or a very strong brand image or heritage.
New brands and newcomers are limited in the benefits they can offer. The democratisation of the
luxury brands and their general availability (if not financial accessibility) means that the bar has been
raised for all the middle ground players. Thus Product Superiority and Product Differentiation are now
perceived by consumer as being the preserve of the luxury brands. In general this also applies to
Brand Image and Brand Heritage.
Thus is it increasingly difficult for High Street brands to offer their customers anything other than the
things being sought by the average retail customer. Those brand benefits are generally regarded as
being:
Product Price
Product Design
Store Atmosphere
Store Location
Store Service
Product Promotions
The High Street brands are thus limited to offering a lower product price, a better store atmosphere,
better store service, and a more convenient store location. The benefits of design and promotions are
transitory and very variable.
382
Brand Resonance
Building a strong brand uses a sequence of steps, in which each step is dependent on the success of
the previous step such as. These are as follows:1.
2.
3.
4.
The implementation of these steps, essential in the creation of the best brand identity, brand meaning,
brand responses, and brand relationship, is a complicated and difficult process. The components of
the process involve the following concepts:Brand Salience relates to aspects of the awareness of the brand, for example, how often and easily
the brand is evoked under various situations or circumstances.
Brand Meaning is made up of two major categories of brand associations that exist in customers
minds related to performance and imagery, with a set of specific subcategories within each. These
brand associations can be formed directly (from a customers own experiences and contact with the
brand) or indirectly (through the depiction of the brand in advertising or by some other source of
information, such as word of mouth). These associations serve as the basis for the positioning of the
brand and its points-of-parity and points-of-difference. Creating strong, favourable, and unique
associations and the desired points-of-parity and points-of-difference can be difficult for marketers,
but essential in terms of building brand resonance. Strong brands typically have firmly established
favourable and unique brand associations with consumers.
Brand Responses refers to how customers respond to the brand and all its marketing activity and
other sources of information that is what customers think or feel about the brand. Brand responses
can be distinguished according to brand judgments and brand feelings, that is, in terms of whether
they arise from the head or from the heart.
Brand Judgments focus on customers personal opinions and evaluations with regard to the brand.
Brand judgments involve how customers put together all the different performance and imagery
associations of the brand to form different kinds of opinions.
Brand Feelings are customers emotional responses and reactions with respect to the brand. Brand
feelings also relate to the feelings that are evoked by the marketing program for the brand or by other
promotional means.
Brand Resonance refers to the nature of this relationship and the extent to which customers feel that
they connect with a brand and feel in synchronization with it. With true brand resonance, customers
have a high degree of loyalty marked by a close relationship with the brand such that customers
actively seek means to interact with the brand and share their experiences with others.
The importance of the brand resonance model is in the checklist it provides for brand building. It
provides a basis by which brands can assess their progress in their brand building efforts as well as a
guide for marketing research initiatives. Brands must have a Duality. That Duality is the brands
connection with the Consumers Head and Heart. One important point reinforced by the model is that
a strong brand has such a duality. A strong brand appeals to both the head and the heart. Strong
brands blend product performance and imagery to create a rich, varied, but complementary set of
consumer responses to the brand.
383
Brand Persistence
Brand Persistence or Success is a basic matter of capturing a sufficient customer base or brand
following to sustain the brand over a period of time. Each year there are hundreds of brands
introduced to the market; only a limited number survive 3-5 years, and only a fraction survive for more
than 5 years. The lifecycle of a brand depends on the professionalism and determination of the brand
managers.
d. Strategy
Strategic analysis of customer expectations
Strategic blueprint to meet the customer expectations
Strategic Business Plan
Strategic marketing objectives
e. Focus
Focus on the customer base segments which meet the profit objectives of the brand
Focus on realistic marketing goals
Focus on the medium and long term development of the brand
f.
Monitor
Seek and automate customer base feedback
Formalise data collection and collation
Monitor customer attitude and perceptions
Automate the systems
g. Communicate
h. Create value
i. Database management and systems automation
384
385
Average
Opportunities
Good
Opportunities
Retailers
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
386
Excellent
Opportunities
Unspecified
Industry Checklist
Any checklist used by producers and brand managers will include some fundamental topics. These
include: product fundamentals, principles and elements of design; product options and preparation;
product selection and continuity; and consumer strategies.
387
Trade Area #9
Trade Area #8
Trade Area #7
Trade Area #6
Trade Area #5
Trade Area #4
Trade Area #3
Trade Area #2
Market specific
Trade Area #1
388
Trade Area #9
Trade Area #8
Trade Area #7
Trade Area #6
Trade Area #5
Trade Area #4
Trade Area #3
Trade Area #2
Market specific
Trade Area #1
Performance Indicators
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Market specific
Trade Area #1
Market specific
389
Decision-making
processes to
selecting,
purchasing, and
development
brands.
Evaluating the
impact of trends
and forecasting on
consumer choices.
Determining the
criteria for products
that meet the
needs of
consumers.
Ability in planning
product mixes and
coordinating
existing product
ranges.
Analysis of the
quality of product
crafting, materials,
and design.
Analysis of the
selection and use
of products.
Evaluating apparel
care procedures.
Analysis of the
sources for
purchasing
products.
390
Trade Area #9
Trade Area #8
Trade Area #7
Trade Area #6
Trade Area #5
Trade Area #4
Trade Area #3
Trade Area #2
Market specific
Trade Area #1
Planning the
impact of visual
merchandising.
Planning the role
and effectiveness
of advertising on
consumer choices.
Identifying
strategies for
promoting products
and services.
Planning the
functions of the
operational and
marketing
processes.
Product displays
using the elements
and principles of
design.
Analysis of viable
merchandising
techniques.
Determine the
impact of
technology on the
marketing and
merchandising of
products.
Identify viable
markets for
products.
391
Trade Area #9
Trade Area #8
Trade Area #7
Trade Area #6
Trade Area #5
Trade Area #4
Trade Area #3
Trade Area #2
Market specific
Trade Area #1
Product Group #7
Product Group #6
Product Group #5
L = 14-21
years
Product Group #4
M = 7-14 years
Product Group #3
Product Group #1
S = 1-7 years
Markets
Product Group #2
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
= Easy
= Neutral
= Difficult
Market Entry Difficulties refer to the ease of entry to the market, the potential for direct investment and
the regulatory environment for the products and the operation of a business.
392
Product Group #7
Product Group #6
Product Group #5
L = 14-21
years
Product Group #4
M = 7-14 years
Product Group #3
Product Group #1
S = 1-7 years
Markets
Product Group #2
Market Potential
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
= Growth
= Static
= Decline
The market potential is a function of market size, disposable income and propensity to consume. In
some countries, notable China, there is demographic dysfunction due to the one child policy and this
has created a serious problem with standard distribution of the population. Essentially in China there
are fewer females and there is an aging population. Both these factors in China will impact womens
fashion products.
393
S M
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
= Growth
= Industry Averages
394
= Decline
Product Group #7
Product Group #6
Product Group #5
L = 14-21
years
Product Group #4
M = 7-14 years
Product Group #3
Product Group #1
S = 1-7 years
Markets
Product Group #2
Financial Potential
Markets
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
= Growth
= Industry Averages
395
= Decline
Product Group #7
Product Group #6
Product Group #5
L = 14-21
years
Product Group #4
M = 7-14
years
Product Group #3
Product Group #1
S = 1-7 years
Product Group #2
10
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
The data above is derived from relative product, market and financial analysis.
396
11
12
13
14
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
The data above is derived from relative product, market and financial analysis.
397
Product Group #9
Product Group #8
Product Group #7
Product Group #6
Product Group #5
Product Group #4
Product Group #3
Product Group #2
Product Group #1
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
The data above is derived from the opinions of the trade and retail experts in each market.
398
Franchising via
National Distributor
Franchising via
Sole Investor
Franchising via
individual
franchisers
Promote brand
through
wholesalers
399
SECTION 3
Market Research
for
Adams Shoes
Markets
in
Greece
Product Sectors
This database scans all the Retail Sectors, and certain Service Industry Sectors to identify all those
product areas which represent the markets for Adams Shoes. These are existing markets and
potential markets for future development.
401
Survey Data
The investigation consisted of field surveys and consumer interviews.
Discussions with the local experts covered the following issues based on the interviewees personal
or corporate experiences. Interviews were conducted with various industry experts.
Retail experts at Trade Magazines or other Media were interviewed regarding the existing market
conditions for the brands, the existing penetration of retail brands, and the future prospects.
Trade Wholesalers, Brand Managers, Trade Buyers, Retailers, In-store Retail Negotiators were
interviewed.
The surveys of Consumers and Retail Customers were done to analyze overall retail issues, Brand
awareness and attitudes towards brands and imports, criticisms of existing retailers, methods for
retailers to improve service, et cetera. The Surveys covered Retail Store Customers and Consumers
of products and services.
Consumer Surveys
Surveys of Consumers and Buyers:
Consumer Surveys
Buyers & Consumers
Competitors
Operations
Products
Trading Area
402
Competitors
Operations
Products
Trading Area
Competitors
Operations
Products
Trading Area
Industry Performance
Surveys of Industry & Retailer Performance:
Industry Performance
Buyers & Consumers
Competitors
Operations
Products
Trading Area
403
Products
Product Group #1
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #8
Product Group #9
Product Group #10
Product Group #11
Product Group #12
Product Group #13
Product Group #14
Product Group #15
Operations
1.
Brand Management
2.
Product Management
3.
4.
5.
6.
7.
8.
Customer Handling
9.
10.
Financial Controls
11.
12.
13.
14.
Distribution Control
15.
404
Buyers &
Consumers
1. Wholesalers
2. Trade Buyers
3. Retailers
4. Consumers
5. Consumers Age: <19
6. Consumers Age: 19-24
7. Consumers Age: 25-34
8. Consumers Age: 35-44
9. Consumers Age: 55-54
10. Consumers Age: 55-64
11. Consumers Age: 65+
12. Consumers Social Group: AB
13. Consumers Social Group: C1
14. Consumers Social Group: C2
15. Consumers Social Group: DE
Trading Area
1
2
Greece
Attik
Voria Ellada
Kentriki Ellada
Thessalonki
Athens
Ahaia
Irklion
10
Lrisa
11
12
Magnisa
13
vvoia
14
Dodeknisos
15
Srrai
405
Retail Competitors
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15
406
Geographic Coverage
The report will provide data for Greece National market, plus market data for the largest City and
Town in Greece.
See: http://www.dg-di.eu/BASE_FOLDERS/World_Cities/GR.html
Financial data
The databases give Financial data and Margins by year Historic: 1997 to Current, and Forecast to
2028.
407
Greece
Market Research
General Contents
This report provides users with commercial intelligence on the markets and industry in the national
market, product sectors, financial and industry data on each of the Towns and Cities. There are a
large number of towns covered in this report for which overall market data is provided. Detailed
market and product data is given for End User significant towns and for End User significant Product
Launch towns. Detailed financial data is given for commercially significant towns and for commercially
significant Product Launch towns.
This report is formatted to give both a narrative description of the various matters covered as well as
provide readers with the ability to directly use the Chapters (via Microsoft Word or compatible word
processors) to produce their own reports and documentation. Experienced users will be able to use
the spreadsheet and databases to generate highly detailed narrative reports, charts and graphics - as
well as sophisticated business and commercial forecasts and models. The databases are provided in
both Excel spreadsheets and an Access database. Explanatory notes are provided as word processor
documents or in PDF formats.
The narrative in this report is necessarily illustrative in its terminology and seeks to provide a basic
degree of business logic and theory which indicates the rational applied in the forecasting and
modelling methodology.
The databases provided are specifically designed to provide users with a uniform and consistent
numeric measure of both (normally) quantifiable values as well as conceptual factors which are
(usually) only capable of qualification. Experienced users will know how to apply forecasting and
modelling software to the numeric data provided to generate highly detailed and discrete business
planning models. The databases provided in this report can be used directly with databases on other
product, markets and industries in other countries. The databases are specifically designed to be
transnational, currency neutral, inflation and purchasing parity adjusted, product parity and product
equivalent adjusted, opportunity cost adjusted, and numerically compatible; they all can be linked or
merged programmatically in business planning models to provide multi-national and multi-level
analysis.
408
63
Pages
c. 1150-3225
Volumes
DVDs
Diagrams, Maps
Spreadsheets
& Illustrations
& Databases
c. 260
c. 6440-9660
Sections
Preface
Chapters
Databases
Financials
Industry
Markets
Products
Grids
Reference
Contents
Legend
Cities
Countries
409
Chapters
Chapter 1
ADMINISTRATION
Chapter 2
ADVERTISING
Chapter 3
Chapter 4
BUYERS COMPETITORS
Chapter 5
Chapter 6
BUYERS PRODUCTS
Chapter 7
Chapter 8
Chapter 9
COMPETITOR ANALYSIS
Chapter 10
COUNTRY FOCUS
Chapter 11
DISTRIBUTION
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Chapter 16
Chapter 17
Chapter 18
Chapter 19
Chapter 20
Chapter 21
Chapter 22
Chapter 23
Chapter 24
410
Chapter 25
Chapter 26
GEOGRAPHIC DATA
Chapter 27
INDUSTRY - NORMS
Chapter 28
Chapter 29
Chapter 30
Chapter 31
Chapter 32
Chapter 33
Chapter 34
Chapter 35
Chapter 36
Chapter 37
Chapter 38
Chapter 39
Chapter 40
MARKETS
Chapter 41
OPERATIONAL ANALYSIS
Chapter 42
OVERSEAS DEVELOPMENT
Chapter 43
PERSONNEL MANAGEMENT
Chapter 44
Chapter 45
PRICING
Chapter 46
Chapter 47
PRODUCT ANALYSIS
Chapter 48
PRODUCT DEVELOPMENT
Chapter 49
Chapter 50
PRODUCT MIX
411
Chapter 51
PRODUCT SUMMARY
Chapter 52
Chapter 53
PROMOTIONAL MIX
Chapter 54
SALESFORCE DECISIONS
Chapter 55
SALES PROMOTION
Chapter 56
SURVEYS
Chapter 57
Chapter 58
TECHNOLOGY
Chapter 59
Chapter 60
URBAN COMPETITION
Chapter 61
TOWNS - FINANCIAL
Chapter 62
TOWNS - INDUSTRY
Chapter 63
TOWNS - MARKET
412
SECTION 4
Business Planning
Adams Shoes
BUSINESS PLANNING
Checklist
Before one can develop a realistic business plan one needs to establish the business objects and
then to produce a database with the following parameters:1. Business start-up
a. Company Law
b. Capital Requirements
2. Credit
a.
b.
c.
d.
e.
3. Employment
a. Employment contracts
b. Employment laws
4. Import of Goods
a. Quotas & Licensing
b. Prohibitions & Restrictions
c. Free imports
d. Tariff-rate quotas
e. Approvals & Inspections
5. Import Duties
a. General Rates
b. Most-Favoured Nation Rates
c. Agreement Rates
d. Preferential Rates
e. Tariff-rate Quota Rates
f. Provisional Rates
g. Preferential Duty Reductions
6. Taxes
a. Value Added Taxes, Reduced Rates, Exemptions, Rebates
b. Business Taxes, Tax Conventions, Specific Product/Trade Taxes
c. Miscellaneous Taxes
7. Product Labelling & Certification
a. Language of labels
b. Safety Certifications
c. Mark Lists
d. Labelling requirements
8. Authorities
414
Customs
Financial
Commerce
National, State, Regional, City administrations
9. Compliance
a. Tax compliance
b. Enforcement of regulations
c. Treatment of foreign enterprises
d. Corruption
10. Retailing
a. Regulations
b. Domestic Retail Development
c. Foreign Retail Investments
d. Economic & Political policies
e. Establishment of enterprises
f. Methods for Market Entry (M&A, Sole Distributor, Franchise, Local presence, etc.)
g. Consumer Markets
h. Logistics & Supply Chains
i. Retail Location & Property
j. Infrastructure difficulties
k. Transaction Costs
l. Bureaucracy
m. Distribution Channels
n. Personnel
o. Financial management
p. Availability of premises
q. Availability of services
11. Retail Demand
a. Emergence of urban middle class
b. Demand stimulation & Disposable Incomes
c. Cultural Factors and Cultural change
d. Retail outlet distribution
e. Infrastructure development
f. Fragmentation of Markets
g. Economic & Socio-cultural demarcations
h. Consumer Segments
i. Consumer Lifestyles
j. Consumer Prejudices
k. Strength of Domestic companies
l. Aggressiveness of Domestic companies
12. Retail Values
a. Growth
b. Real v- Forecast
13. Demand Drivers
a. Supply Chain Cost reduction
b. Store Format
c. Information dissemination and reception
d. Shopping Habits
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Service provision
Customer Demand / Expectation satisfaction
Product Pricing
Retail Channel Development
Product Mix
Marketing Mix
Family size and composition
Geographic location
Regional diversity
14. Competition
a. Domestic Competition
b. International Competition
c. New Entrants
d. Retail Consolidation
e. Aggressiveness of Players
f. Bargaining Power of Suppliers
g. Bargaining Power of Buyers
h. Cost Reduction
i. Location & store siting
j. Internet
k. Payment systems
15. Market Entry Strategies & Control of Operations
a. Own Local Manufacture & Distribution & Retail Outlets
b. Own Stores
c. Joint Ventures & Mergers
d. Licensing
e. Franchising
f. Stocking Distributors
g. Sales Representation to Wholesalers
h. Direct Sales to Consumers
16. Tactics
a.
b.
c.
d.
e.
f.
g.
Control and Define Supply Chain and Distribution policies and finances
Enter smaller cities
Concentrate of younger demographics
Entrench & strengthen brand recognition
Develop Sales Channels / Internet / TV / Malls / Shopping experiences
Offer intangible benefits
Reduce Costs and Reduce Prices
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Checklist implementation
Business Planners should input their business objectives and parameters using a database format,
for example, the Business_Planning_Checklist_Retailing.xlsx file which is found in the Toolkit.
Basic data on Customs Tariff, Duty & Taxation levels, Import restrictions & Regulations, Shipping &
Packaging Requirements, Customs Clearance Procedures and time delays, Port of Entry data: Name,
Location, Description, Customs Handling, Storage, Transport facilities, et cetera, can be found in the
supporting documentation.
The Toolkit contains PDF files for each national market.
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Cashflow
The client can order Cashflow projections (as part of the After-Sales Service) once operational
parameters have been set. The operational parameters are the initial retail capital investments, store
location, overheads, staff levels, et cetera.
Cashflow projections are done using a monthly interval and will depend on which month the retail
store will open. It is not possible to produce Cashflow projections without knowledge of the Start
month and other market criteria. The first few months of sales revenue in the retailers business will
depend on which month a store first opens. Other items, like before start-up expenses, opening
balances, et cetera, must be known before a Cashflow projection can be made.
Cashflow Calculator
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When you install the Business Plan software it creates a Business Plan directory folder on your
computer. So that you can easily find the folder, it is put on your root directory. The structure of this
folder is shown here.
From this folder you can generate any number of Business Plan projects, and these individual
projects are then saved to the Project folder you specify in the project generation process. See the
structure of this directory here.
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How it works...
First, review the Market Research to gain an understanding of the market and the industry. This is a
simple process which allows users to browse the Market Research Web and quickly pick those areas
of interest and potential business opportunity.
Second, install and run the Business Plan software to generate the detailed commercial and project
management databases. Each Business Plan is a single project and the user can run as many
projects, or business plan scenarios, as required.
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One can modify the business plan, or run as many different scenarios as necessary, to refine a
particular business plan or to explore alternatives.
Third, run the Project Dialogue software to generate the advanced Project Action Plan databases for
the country covered by the project.
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Fourth, users can obtain further services as part of the After-Sales Service, including a Service Team,
Consultants, Resources, Support Services, and Corporate Research; and this allows users to access
additional project resources and/or produce more detailed analyses and blueprints for project
management.
There are many ad hoc services through which users can obtain the help they need to assist them to
reach their business goals. These ad hoc services can range from a full Service Team which can
produce a fully implemented turnkey project, to the simple provision of a consultant on the other end
of a telephone line to immediately answer a technical or commercial question, or the loan of a
programmer or systems engineer for a few hours. In addition to the human resources, users can also
access a wide range of commercial and physical resources, support services, and corporate
intelligence.
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These resources and services become an integral and operational part of the project and are
managed by the project managers.
Fifth, users generate the Project Web which will allow users to view the project in its entirety.
Users do not need to complete all the forms; however the ones which users do not complete will
result in incomplete project web pages. Users can edit out these unwanted web pages. Users can of
course return to these forms later and complete any missing data and then re-generate the project
web.
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Users can update the project data as often as users require and then re-generate the Project Web (if
users specify the same Project Name then the new project web will over-write the existing web).
Users can also generate as many separate Projects designs or scenarios as users wish (each with a
unique Project Name) and these will generate separate Project Webs for viewing and discussion.
Finally, users can obtain software and databases to generate highly detailed medium and long-term
business planning analyses and forecasts for company management and investors.
There are diverse utilities, forecasting and modelling tools available for advanced business modelling
and forecasting; and one can use these to produce highly detailed analyses, or specialized business
planning forecasts and documentation, reports, spreadsheets, and other items to assist company
management in their medium and long-term planning activities.
This is especially useful where users are involved in technical/industrial processes, or a complicated
distribution system, or intricate financial operations, or a technologically evolving product, where one
has to coordinate and manage the project elements over an extended geographic space and/or over
a medium or long-term timescale.
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Presentation
The report is delivered as follows:
1. Retailer Report downloaded Online as a PDF file.
When you want the database updated then you can simply order an update. When you want more
detailed information on any part of the database then you can order the information you need.
This database has been uniquely generated for each order and includes a 1 year After-Sales Service.
A DataGroup / Data Institute service representative is assigned to each client (see the covering letter
which accompanied your order delivery).
After-Sales Support:
All reports, studies and consultancy assignments must inevitably mean that the publishers or
consultants are trying to interpret the needs and expectations of their clients. Unfortunately in most
cases, with most publishers, the clients will not receive all the data they need. This is not the case
with a DataGroup report.
The main problem that DataGroup has to resolve is that the database for each report would, if printed,
be about 20 volumes of 600 pages for each volume. Clearly this amount of information (12,000
pages) would be unusable and unwanted by the majority of clients - and indeed the cost would be
twenty times greater.
Thus with After-Sales Services clients have 12 months Support whereby clients can obtain more
information and data on markets, industries, competitors, distribution channels, end users, et al.
All DataGroup / Data Institute products have a 12 month After-Sales Service and what this means is
that from 12 months after the data of purchase a client can obtain more data or services at a greatly
reduced cost. After-Sales Services are usually provided at 35%-55% of the normal retail costs. This is
because this work is done during off-peak hours.
http://www.dg-di.eu/about-after-sales.html
Costs: The current cost is 75 per hour; this includes all researcher, computer & database access.
The cost of this After-Sales Service is low and provides a highly cost conscious method of acquiring a
vast amount of additional and more detailed information at a relatively low cost. No other Publisher
provides such a service to their clients
Delivery of the results produced is 7-14 days. For more urgent After-Sales Service work the costs
depend on the clients time frame and the availability of our researchers.
Quotations: We quote client in advance for After-Sales Service work and this quotation states the total
cost of the job, plus the anticipated delivery time.
After-Sales Services are usually provides on DVD, Memory Stick, USB Hard Drive or online.
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Product Level
This is an Entry Level product
This is an entry level product which provides users with corporate, market and commercial
intelligence on the company specified and the markets and industries in the countries listed. The
report analyses the industry and markets with a basic point of reference, namely the Base Reference
Country. The report is formatted to give both a narrative description of the various matters covered as
well as provide readers with the ability to directly use the Chapters (via Microsoft Word or compatible
word processors) to produce their own reports and documentation. Experienced users will be able to
use the spreadsheet and databases to generate highly detailed narrative reports, charts and graphics
- as well as sophisticated business and commercial forecasts and models. The databases are
provided in both Excel spreadsheets and an Access database. Explanatory notes are provided as
word processor documents or in PDF formats.
The Base Reference Country is usually the country of the client; however client can order a database
with another Base Reference Country. If a different Base Reference Country that that provided in this
database is needed, then client can order that as part of the After-Sales Service.
As an entry level product the narrative is necessarily illustrative in its terminology and seeks to
provide a basic degree of business logic and theory which indicates the rational applied in the
forecasting and modelling methodology.
The databases provided are specifically designed to provide users with a uniform and consistent
numeric measure of both (normally) quantifiable values as well as conceptual factors which are
(usually) only capable of qualification. Experienced users will know how to apply forecasting and
modelling software to the numeric data provided to generate highly detailed and discrete business
planning models. The databases provided in this report can be used directly with databases on other
product, markets and industries in other countries. The databases are specifically designed to be
trans-national, currency neutral, inflation and purchasing parity adjusted, product parity and product
equivalent adjusted, opportunity cost adjusted, and numerically compatible; they all can be linked or
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Toolkits
To assist users there is a Toolkit to be found on the 5 DVDs, online downloads, or Hard Disk DriveDVD 1
1.
2.
3.
4.
5.
6.
7.
8.
9.
Data Manuals
Document Templates
Help files
Manuals Templates
Microsoft Utilities
OpenOffice
Business Plan Images
Reference files
US Census Data Tools
Because all DataGroup and Data Institute database are directly compatible with U.S.
Government databases (especially the Department of Commerce, US census, NIST, Treasury,
et al) it is sometimes useful for users to use US Government data handling tools to manage not
only US Government data, but also the data provided by DataGroup and Data Institute.
Alternatively, if you are already using this US Government software you can simply access the
DataGroup and Data Institute databases with the same software. In generate DataGroup and
Data Institute databases we use the same database parameters, structures and field names as
those found in US Government databases, and thus uses can correlate and query databases
without undue difficulty.
DVD 2
1. Database Utilities
2. Enterprise Resource Planning
3. Integrated Development Environment
If you intend to implement DataGroup and Data Institute databases online (internet or intranet)
then an Integrated Development Environment is often the easiest route to data dissemination
and data manipulation.
DVD 3
There are about 40 Statistical packages provided in this Toolkit. These are OpenSource packages which are generally free to use. The following packages are
available:acslX, ADaMSoft, ADMB, AMPL, Analyse-it, Analytica, Angoss, APMonitor, ASReml,
Automlab, Baudline, Bayesian Filtering Library, BMDP, BV4.1, CalEst, Ch, Chronux,
COMSOL Script, CSPro, DADiSP, DAP, Data Applied, Dataplot, Demetra+, EJS, ELKI,
Epi Info, Euler Mathematical Toolbox, EViews, FAME, FEniCS Project, Fityk, FlexPro,
GAUSS, Genedata Analyst, GenStat, GeoDA, GLIM, GNU Data Language, GraphPad
InStat, GraphPad Prism, gretl, Hermes, IBM SPSS Modeler, IBM SPSS Statistics,
IDAMS/WinIDAMS, IDL, IGOR Pro, IMSL Numerical Libraries, Izenda, JAGS, JHepWork,
JMP, JMulTi, Julia, KPP, LabPlot, LISREL, Macsyma, Madagascar, MadArtSoft,
Madeline, Maple, Mathcad, Mathemagix,, Mathematica, MATLAB, MCSim, MedCalc,
Minitab, MINUIT, MLwiN, Mondrian, NCAR Command Language, NCSS, NMath Stats,
numberGo Publisher, NumXL, Octave, O-Matrix, OpenBUGS, OpenEpi, OpenMx, OptimJ,
Orange, Origin, OriginPro, PARI/GP, Partek, PAW, Perl Data Language, Ploticus, PrimerE Primer, PSPP, PV-WAVE, Q research software, QtiPlot, Quantum, R, R Commander, R
Rattle GUI, RapidMiner, RATS, Revolution Analytics, ROOT, Sage, SALOME, Salstat,
SAS, scikit-learn, Scilab, SciPy, SHAZAM, Shogun, SigmaStat, SigmaXL, Simfit, Simul,
SOCR, SOFA Statistics, SPC XL, Speakeasy, S-PLUS, SPSS, Stata, Statgraphics,
STATISTICA, Statistical Lab, Stat-JR, Stats Helper, StatXact, SUDAAN, Systat, The
Unscrambler, Trilinos, Unistat, VisSim, Waffles, Weka, WinBUGS, Winpepi, X-12-ARIMA,
XLfit, Xlisp-stat, XploRe, Yorick.
DVD 4
Microsoft Server 2003 utilities and resources. These are for clients implementing
databases on Microsoft Server 2003 systems.
DVD 5
Microsoft Server 2008 utilities and resources. These are for clients implementing
databases on Microsoft Server 2008 systems. Microsoft Server 2012 migration
utilities are also provided in this Toolkit.
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Report Cost
Retailer Report
Adam's Shoes - Greece
Report Pricing
SECTION
PART
Euros
CONTENTS
Base Data on Adams Shoes
280
B.1
160
B.2
90
750
750
750
750
750
750
750
750
Strategies (Corporate)
990
Retailing (Corporate)
990
990
CE
3&4
MR
1250
950
11700
5850
Discount Structure
Part A plus any 2 Parts: Discount
15%
20%
40%
50%
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About DataGroup
DataGroup was formed in 1974 by a group of management consultants and information technology
specialists whom had previous worked with, amongst other organisations, the U.S. Department of
Commerce, Bank of America, Chase Econometrics, The Marketing Strategies Institute, the OECD in
Paris, and MITI in Tokyo. DataGroup was established in order to develop a systemised,
computerised, and uniform methodology to facilitate real world forecasting models for macroeconomic, micro-economic, market, product, and industry purposes.
For full details of DataGroups history please see: About DataGroup
DataGroup Clients
DataGroup do not publish a list of current client list due to client confidentiality; however a partial list
of client in the period 1975 to 2000 is shown here: DataGroup Client 1975-2000
Adam's Shoes
Greece
Ref: 7699899608182
Published by The DataGroup Stiftung, Vaduz, Liechtenstein. Copyright by DataGroup Stiftung. All rights reserved.
No part of the contents of this document may be reproduced for third party distribution or transmitted to third parties in
any form or by any means without the written permission of the publisher. DataGroup publications are available
worldwide only through authorized distributors. DataGroup 1974 2015
All trademarks are recognized and are used as only an identifier and as Fair Comment as allowed in United States copyright law and the
decisions of the European Court. Microsoft, Word, Excel, Access, Windows, and associated logos and identifiers are trademarks of
Microsoft Corporation. The copyright and trademarks of the U.S. Government Printing Office, Bureau of the Census, U.S. Department of
Commerce, U.S. Office of Management and Budget, U.S. General Accounting Office, National Technical Information Service and other
U.S. Government Departments and Agencies are recognized. The copyright and trademarks of all publishers and producers of ancillary
documentation and software are recognized.
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