Monday, 26 December 2016

CHAPTER 10: STORE LAYOUT AND DESIGN

  The elements of a store’s environment & its two primary objectives are very important in setting the retail store. There are two primary objectives of the store environment. First is the store image. It is how much we spend in order to get customers into the store. It were affected by such things like location,     employees, promotional activities, layout, merchandise, lighting, cleanliness, service offerings. Meanwhile the second one is space productivity. It is how much is necessary to keep customers inside the store for longer periods so that we can expose them to more products, thus increasing the probability that they purchase.

Figure 1: Elements of the Store Environment

       The figure 1 above shows that the four important elements of the store environment in store layout and design. First is store planning. In store planning, it is more focus on the allocation of space and how it is used. There are numerous types of space which are walls, sales floor, back room that receive areas for shipments & stockroom, office & other functional areas such as break & training rooms, offices, and bathrooms, aisles, service areas, and other non-selling space such as dressing rooms, service desks, and others. In order to plan space allocation, it requires the retailer to first analyze the profitability and productivity of various merchandise lines. Besides that, retailers also need to improve an existing store’s space productivity through the space productivity index. For example, we can compares the percentage of the store’s total GM for a category to the percentage of space allocated to that category and compare the index figures such as 1.0 is ideal, need to increase allocation to make more money by having more product available if greater, and need to remove some space if less. Space allocations for a new store has 2 methods for calculating sales per Sq. Foot which are traditional that total sales / total sq. ft. in the store and Bob Kahn’s approach can be calculated through the number of customers X the length of time in the store

·         Layout and Circulation Patterns:
·   Free-Flow Layout

·         The Grid Layout

·         The Loop Layout

·         The Spine Layout



Disney
·         Kohl’s “Modified” Loop Layout

·         The Only Patented Layout –
Clarence Sander’s Piggly Wiggly


Merchandising

In planning fixtures and merchandise presentation, it is dramatically affected by one’s store layout and design. For example, the placement of offices & other security windows. This is to increased emphasis on presentation as retailer seek to maximize sales out of existing square footage. There are two basic types of merchandise presentation:

  • On-shelf merchandise


The display of merchandise on counters, racks, shelves, and other fixtures throughout the store. Fixtures must not only present merchandise attractively, but also display in such a way that it’s easy to understand and is accessible.

  • Visual merchandising
The artistic display of merchandise and theatrical props used as scene-setting decoration in the store. It is typically not shoppable, but impacts affect and accessorization. For example, how retailers can offer service without people and helps customers know what to buy.



Example of Visual Merchandising

Merchandise Presentation and Likely Customer Affect & Price Image

       Methods of merchandise presentation:
1.    Shelving
2.    Hanging
3.    Pegging
4.    Folding
5.    Stacking
6.    Dumping

Merchandise Presentation and Likely Customer Angles or Sightlines


Merchandise Presentation and Vertical Color Blocking


Store Design

It is an overall goal is to create a desirable ambience. A function of at least four different factors:
1.    Storefront design
All successful retailers will have storefronts that are noticeable, memorable, easily identifiable. It must includes not only the store front décor, architecture, and building materials, but also window displays and any advertising. Besides, poor performance here will dramatically lessen one’s overall traffic.


Storefront Design


Visual Communications
       5 General Areas of Visual Communication:
1.    Name, Logo, and Retailer Identity
2.    Institutional signage
3.    Directional, Departmental, and/or Category signage
4.    Point-of-Purchase (POP) signage
5.    Lifestyle Graphics





CHAPTER 9: RETAIL ORGANIZATION AND HUMAN RESOURCE MANAGEMENT

The Figure below shows the process in organizing a retail firm. 


Figure 11-2: The Process of
Organizing a Retail Firm
          To examine the various organizational arrangements utilized in retailing

Figure 11-3: Division of Tasks in a
Distribution Channel

Figure 11-6: Organization Structures Used by Small Independents
Mazur Plan:
Ø  Merchandising—buying/selling, stock planning,
Ø  Publicity—displays, event planning, advertising research
Ø  Store management—customer service, merchandise protection, receiving
Ø  Accounting and control—credit, expense budgeting, inventory management

In order to consider the special human resource environment of retailing, the  Human Resource Management 
in Retailing need to play the important role in recruiting, selecting, training, compensating and supervising. However, there the principles and practices involved with the human resource management process in retailing. First, the women in retailing. This is regarding the issues to address with regard to female workers. the retailers can provide the training programs and fex time such as the ability of employees to adapt their hours. These ways have beed done by the retailing empires such as Mary Kay and Avon.

Besides, the minorities in retailing also important this issues to address with regard to minority workers. This is to clear policy statements from top management as to the value of employee diversity. For example, the retailers can provide the training programs and advancement opportunities.

Lastly, the retailers also need to consider the labor law considerations. Retailers have not to hire underage workers, pay workers “off the books”, discriminate in hiring or promoting workers or violate worker safety regulations. These are some of ethical conducts that need to followed by the retailers. 

CHAPTER 8: PROMOTIONAL STRATEGY

  There are a few elements of retail promotion in the promotional strategy such as advertising, public relations, personal selling, and sales promotion. First, advertising is paid, nonpersonal communication transmitted through out-of-store mass media by an identified sponsor.The objectives of advertising for retailers are to  lift short-term sales, increase customer traffic,  develop a retail image, to inform customers about goods and services.

Advertising Characteristics
Advantages
Disadvantages
  •    Attracts a large audience
  •    Gains pass along readership (for print)
  •    Low cost per contact
  •    Many alternatives available
  •    Control over message content; message can be standardized
  •    Message study possible
  •    Editorial content surrounds ad
  •    Self-service operations possible  
  •  Standardized messages lack flexibility
  •    Some media require large investments
  •    Geographic flexibility limited
  •    Some media require long lead time
  •    Some media have high throwaway rate
  •    Some media limit the ability to provide detailed information


Figure 19-4: Types of Advertising

Public Relations are the communication that fosters a favorable image for the retailer. Meanwhile, publicity is nonpersonal form of public relations whereby messages are transmitted by mass media.  The time or space provided by the media is not paid for, and there is no identified commercial sponsor. Besides, there a few public relations objectives for retailers which are to increase awareness of the retailer and its strategy mix, maintain or improve the company image and show the retailer as a contributor to the public’s quality of life.


Public Relations Characteristics
Advantages
Disadvantages
ü  Image can be presented or enhanced
ü  More credible source
ü  No costs for message’s time or space
ü  Mass audience addressed
ü  Carryover effects possible
ü  People pay more attention than to clearly identified ads
û  Some retailers do not believe in spending on image-related communication
û  Little control over publicity message
û  More suitable for short run
û  Costs for PR staff, planning activities and events

Personal Selling is an oral communication with one or more prospective customers for the purpose of making a sale. There are a few personal selling objectives for retailers which are persuading customers to buy, provide proper levels of customer service, improve and maintain customer satisfaction and create awareness of items also marketed through the Web, mail, and telemarketing.


Personal Selling Characteristics
Advantages
Disadvantages
ü  Message can be adapted
ü  Many ways to meet customer needs
ü  High attention span
ü  Less waste
ü  Better response
ü  Immediate feedback
û  Limited number of customers at one time
û  High costs
û  Doesn’t get customer in store
û  Self-service discouraged
û  Negative attitudes toward salespeople


Sales Promotion encompasses the paid communication activities other than advertising, public relations, and personal selling that stimulate consumer purchases and dealer effectiveness. There are many  types of sales promotions such as displays, coupons, prizes, samples, demonstrations. The objectives of sales promotions for retailers are increasing short-term sales volume, maintaining customer loyalty, emphasizing novelty, and complementing other promotion tools.


Sales Promotion Characteristics
Advantages
Disadvantages
ü  Eye-catching appeal
ü  Distinctive themes
ü  Added customer value
ü  Draws customer traffic
ü  Maintains loyalty
üIncreases impulse purchases
ü  Fun for customers
û  Difficult to terminate
û  Possible damage to retailer’s image
û More stress on frivolous selling points
û  Short-term effects only
û  Used as a supplement