Retailing Principles & Practices - Chapter 18 Notes

Establishing & Maintaining a Retail Image

• Image

  • Represents how a retailer is perceived by customers.
  • Important for establishing a position in the market.
  • Communication of image must be distinctive, clear, and consistent.
  • Forms of communication include both visual and written methods via various media (traditional and digital).

• Positioning

  • Strategy to project a distinctive image relative to competition.
  • Must maintain consistency across all retail channels:
  • Physical stores
  • Websites
  • Social media and advertising
  • Chains should present a uniform image across all branches.

Brand Strategy

• Brand Identity

  • Visual representation of the brand across all touchpoints.

• Brand Management

  • Tools for keeping brand elements in sync and monitoring success metrics.

• Customer Activation

  • Engaging customers through fresh communication strategies.

• Brand Voice

  • Unique/authentic voice representing the brand.

• Staff Activation

  • Employees are trained to understand and embody the brand's promise.

Positioning Approaches

• Mass Merchandising

  • Focus on discount and value-based image with broad product selection and large stores.

• Niche Retailing

  • Targets specific consumer segments with tailored strategies rather than broad appeal.

Retail Image Elements

• Cues for Image Presentation

  • Physical and symbolic cues work together to create a retail image.
  • An ongoing approach is necessary for effective management.

• Retail Image Positions

  • Price Leaders: Emphasize low prices with functional store environments.
  • Location Leaders: Convenient locations to enhance accessibility for customers.
  • Atmospheric Leaders: Create enticing in-store experiences.
  • Product Quality Leaders: Offer unique, high-quality displays.
  • Selection Leaders: Good value from a wide range of appealing merchandise.
  • Service Leaders: Provide excellent customer service.

Customer Perception

• A shopper should discern:
  • Store name
  • Product category
  • Unique selling proposition
  • Price positioning
  • Store personality in 3 seconds.

Store Atmosphere

• Definition:

  • The psychological feeling created for customers when they interact with a retailer, encompassing both store and non-store experiences.

• Influences:

  • Affects shopping enjoyment, duration, interaction with staff, spending behavior, and likelihood of future visits.

Visual Merchandising

• Goal:

  • Create specific looks, display products to stimulate shopping behaviors, and enhance physical environments.

• Elements to Consider:

  • Store window displays, aisle width, fixture types, signage, lighting, and music.

Store Layout

• 6 Steps to Layout:
  1. Allocation of Floor Space: Categorize areas for selling, stock, and personnel.
  2. Classifying Offerings: Group products based on function, market segment, and storage needs.
  3. Determining Traffic Flow Patterns: Straight (grid pattern) for efficiency or curving (free-flowing) for customer engagement.
  4. Determining Space Needs: Calculate needed space based on product category.
  5. Mapping In-Store Location: Assign departments logically across floors.
  6. Arrangement of Individual Products: Group by characteristics such as package size, color, and customer interest.

Types of Displays

• Assortment Displays:

  • Encourage customers to interact with products (e.g., clothing).

• Theme-Setting Displays:

  • Create mood around seasonal or thematic events (e.g., holidays).

• Ensemble Displays:

  • Present complete product combinations (e.g., outfits or table settings).

Non-Store Retailing Elements

• Influence of website layout similar to storefront characteristics:

  • Must be inviting, informative, and user-friendly for the best experience.

• Online Store Considerations:

  • Advantages: Unlimited space, customization, modification flexibility, impulse purchasing facilitation.
  • Disadvantages: Potential for slow connections, complexity, and lack of tactile product experience.

Enhancing Customer Experience

• Experiential Merchandising: Make shopping interactive (e.g., demonstrations).
• Shopper Engagement: Wider aisles, co-branding opportunities, and enticing layouts encourage longer shopping times and increased spending.