Establishing and Maintaining a Retail Image Overview A
Establishing and Maintaining a Retail Image
Overview • A retailer needs proper communication strategy to properly position itself in consumer’s mind • Various physical and symbolic cues can be used to do this • Customer-retailer relationship- is all about “PERCEPTION” • Starbucks-Relax • Wal-mart- Rollback
Positioning and Mc. Donald’s
The significance of retail image • • Image refers to how a retailer is perceived by customers and others. Positioning refers to a firm’s devising its strategy to project an image relative to its retail category and competitors. To succeed, a retailer must communicate a distinctive, clear, and consistent image. Once an image is established in consumers’ minds, a retailer is placed in a niche relative to competitors. For global retailers, it can be challenging to convey a consistent image worldwide.
Components of a Retail Image
The Dynamics of Creating and Maintaining a Retail Image Creating and maintaining a retail image is a complex, multi-step, ongoing process that encompasses more than store atmosphere. Now, retailers must entertain shoppers.
In seconds……. � A shopper should be able to determine a store’s ü Name ü Line of trade ü Claim to fame ü Price position ü Personality
A key goal for chain retailers, franchisors, and global retailers is to maintain a consistent image among all branches. Yet, a number of factors may vary widely and affect image. They include the following: Management and employee performance. Consumer profiles. Competitors. The convenience in reaching stores. Parking. Safety. The ease of finding merchandise. Language and cultural diversity among customers in different countries. • The qualities of the surrounding area. • •
Atmosphere • • A retailer’s image depends heavily on its atmosphere. Atmosphere refers to a store’s physical characteristics that project an image and draw customers. It is the psychological feeling a customer gets when visiting a store. Many people form impressions of a retailer before entering a store or just after entering. A retailer that takes a proactive, integrated approach to create a certain “look, ” properly display products, stimulate shopping behavior, and enhance the physical environment is engaging in visual merchandising.
Atmosphere Ø Store retailer: Atmosphere refers to store’s physical characteristics that project an image and draw customers ; rather the personality of the store Ø Nonstore retailer: Atmosphere refers to the physical characteristics of catalogs, vending machines, Web sites, etc. A retailer’s sights, sounds, smells, and other physical attributes all contribute to customer perceptions.
Visual Merchandising • A proactive, integrated atmospherics approach aimed to create a certain look, properly display products, stimulate shopping behavior, and enhance physical behavior. • It includes everything from store display windows to the width of aisles to the materials used for fixtures to merchandise presentation.
The Elements of Atmosphere-for a store based retailer
Exterior • A storefront is the total physical exterior of the store, including the marquee, entrance, windows, lighting, and construction materials. With its storefront, a retailer can present a conservative, trendy, upscale, discount, or other image. • Unfamiliar customers may judge the stores based on its exterior • Can be enhanced by trees, fountains, benches in front etc.
Exterior Planning • • Storefront Marquee Store entrances Display windows Exterior building height Surrounding stores and area Parking facilities
Alternatives in Planning a Basic Storefronts can be chosen from among several alternatives. These are some: § Modular structure : One piece rectangle or square that may attach several stores. § Prefabricated structure : A frame built in a factory and assembled at the site. § Prototype store : used by franchisors and chains to foster consistent atmosphere. § Recessed storefront : Lures people by being recessed from the level of other stores. § Unique building design : a round structure.
A marquee • A sign that displays the store’s name. • The world’s best-known marquee is Mc. Donald’s golden arch.
Store Entrances § How many entrances are needed? § What type of entrance is best? § How should the walkway be designed?
Three decisions about entrances are necessary • • • The number. Many small stores have only one entrance. Department store may have four to eight or more entrance. The type (The doorway can be revolving; electric, self-opening; regular, push-pull; or climate-controlled open entry). The latter is an open entrance with a curtain of warm or cold air, set the same temperature as inside the store. Lighting can be traditonal or fluorescent, white or colors, and or flashing or constant. Walkways.
Display windows • • Two main purposes: to identify the store and its offerings, and to induce people to enter. Decisions include the following: The number. The size. The shape. The color. The themes. The frequency of changes per year.
Exterior • • The height of the exterior can be disguised (when part of the store is beneath ground level) or nondisguised (when all floors can be seen by pedestrians), depending on the image sought. Good exterior visibility means that pedestrian and/or vehicular traffic must clearly see storefronts or marquees. The goal for a retailer is to have its store or center appear unique. The surrounding stores and the surrounding area contribute to atmosphere. They present image cues.
Exterior • Parking facilities can add to or detract from store atmosphere, on the basis of access, cost, and nearness. • The store’s image is diminished by congestion, when its parking lots, sidewalks, and/or entrances are jammed. Customers may also spend less time shopping if they feel crowded.
General Interior • • • Flooring Colors Lighting Scents Sounds Store fixtures Wall textures Temperature Aisle space Dressing facilities • In-store transportation (elevator, escalator, stairs) • Dead areas • Personnel • Merchandise • Price levels • Displays • Technology • Store cleanliness
General Interior • Once customers are inside a store, numerous elements affect their perceptions. • Flooring can be cement, wood, linoleum, carpet, etc. • Colors can be bright and vibrant as opposed to light pastels or plain white. • Lighting can be direct or indirect, white or colors, or constant or flashing. • Scents can be natural or manmade. Music can be loud or soft, or slow or fast.
• Store fixtures can be planned on the basis of both their utility and aesthetics. Pipes, plumbing, beams, doors, storage rooms, and display racks and tables all affect atmosphere. • Wall textures enhance (e. g. , raised wallpaper) or diminish (e. g. , barren walls) atmospherics. • The customer’s mood is affected by the store’s temperature and how it is achieved (e. g. , central air-conditioning, fans). • Wide, uncrowded aisles create a better atmosphere than narrow, crowded aisles. • Dressing facilities can be elaborate, plain, or nonexistent.
Multi-level stores must have vertical transportation. These are options: • • Elevator (operator-run in finer stores). Escalator. Stairs (for discount or smaller stores). A combination of all three for larger stores.
• • • Dead areas (light fixtures, beams, doors, rest rooms, dressing rooms, vertical transportation, etc. ) are spaces where normal displays cannot be set up. This is how retailers are using dead areas better: Mirrors on exit doors. Vending machines located near rest rooms. Ads in dressing rooms. Displays of impulse items along the routes of escalators
• The number, manner, and appearance of store personnel reflect the store’s atmosphere. • “ 15 feet, 15 seconds” • Self-service creates a discount, impersonal image. • Top-line merchandise yields a different image than lower-quality items • Clean atmosphere
Prices contribute to image in two ways • The level of prices fosters a perception of the store. • The way prices are displayed is a vital part of atmosphere. An upscale store places cash registers in inconspicuous areas, while a discount store locates cash registers centrally and has signs to point them out.
ENCOURAGING CUSTOMERS TO SPEND MORE TIME SHOPPING • The amount of time a shopper spends in a store (excluding waiting in a line) is perhaps the single most important factor in determining how much he or she will buy. • The tactics used to persuade people to spend more time shopping include experiential merchandising, solutions selling, an enhanced shopping experience, retailer co-branding, and wish list programs.
• The aim of experiential merchandising is to convert shopping from a passive activity into a more interactive one, by better engaging customers. See • Solutions selling takes a customer-centered approach and presents “solutions” rather than “products. ” For example, supermarkets sell fully prepared, complete meals that just have to be heated and served. • An enhanced shopping experience means the retailer does everything possible to minimize annoyances and to make the shopping trip pleasant.
Firms can provide an enhanced experience by doing the following: • Setting up wider aisles. • Adding benches and chairs for those accompanying shoppers. • Using kiosks to stimulate impulse purchases and answer questions. • Having activities for children. • Opening more checkout counters. • Providing shopping carts.
• Co-branding exists when two or more wellknown retailers situate under the same roof (or at one Web site) to share costs, stimulate consumers to visit more often, and attract people shopping together who have different preferences. Examples are provided. • A wish list program is a technique borrowed from Web retailers that enables customers to prepare shopping lists for gift items they would like to receive from a particular store or shopping center.
COMMUNITY RELATIONS • The way that retailers interact with the communities around them can have a significant impact on their image and performance.
Community-Oriented Actions C Make stores barrier-free for disabled shoppers C Show a concern for the environment C Support charities C Participate in anti-drug programs C Employ area residents C Run sales for senior citizens and other groups C Sponsor Little League and other youth activities C Cooperate with neighborhood planning groups C Donate money/equipment to schools C Check IDs for purchases with a
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