Mahogany Western Wear Store Analysis - Report Example

RETAIL MARKETING MANAGEMENT Introduction: Market Analysis Summary Mahogany Western Wear is one the clothing retail shops in the Southern part of Houston. It is at the central point closer to the community who make the greatest percentage of customers. The secondary target buyers include the community belonging to Hispania, who lives nearby. As their population increases, the sales turn out move up since they are loyal to Western apparel. The last category of buyers is to others who come from different parts of the region. The popularity of the store has gone higher, and majorities are now curious to seek the fabrics because of good trust. There are seasonal purchasers who come during rodeo season (Kalafatis & Tsogas, 1999). This report brings on board various issues affecting trade in the region. Since retailing forms one of the most complicated fields of business. Usually, it involves the use of technology, marketing, and finances management. During the decision-making process, while buying a product, many folks respond to various things rather than the tangible product itself thereby making the retail environment more significant in affecting the behavior change (Kotler, 1973). Market Segmentation The stores aim entails serving the locals especially the African-American cowboy community who find it hard to access clothes. The Hispanic communities to have slimmer and shorter frames hence their needs are lowly served in major retail outlets of the Western region. The growing community has statistically demonstrated loyalty to the western brands like Wrangler. The store offers a variety of apparel, together with accessories and other gifts. The statistical analysis below shows the status of the current market (Kotler, 1973). Market Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Potential Customers Growth CAGR African-American Cowboys/Cowgirls 10% 18,247 19,981 21,879 23,958 26,234 9.50% Hispanic Cowboys/Cowgirls 15% 9,682 11,134 12,804 14,725 16,934 15.00% Other 10% 3,724 4,096 4,506 4,957 5,453 10.00% Total 11.33% 31,653 35,211 39,189 43,640 48,621 11.33% Target Marketing It is the effective way to optimize resources of marketing. It is usually beyond mere promotional merchandise since it involves breaking the market into small segments and then putting the effort in one of the sections in order to realize success. Mahogany wear has come up with strategies as they struggle to serve the local community of an African-American cowboy who finds it hard to find clothes that fit them properly. The market is not served well by the Western retail outlets hence they have taken the initiative to serve that population without biases (Theobald, 2000). Industry Analysis Western wear apparel retailers comprise many stores namely: Small specialty stores that cater to small families located in the neighborhood; Large-owned wear retailers that sell to local tourists and during particular seasons. They are the large stores mass market that sells to aggressive buyers (Carter, 2009). Competitor Analysis The store has three main competitors within proximity of fifteen miles radius. They include: Cavender’s Boot City located in the state of Texas. They operate 42 stores and sell apparel and boots to the general market population. They have a larger percentage of the market share but still operate within the market limits. The second competitor is Barbecue Hall of Fame which joins the atmosphere of Goode and BBQ restaurant with tourist attraction. They specialize in an electric mix of old west meets, grills, and other cookware. Lastly, we have Turner Saddlery, which is a family owned with stores in Houston and Conroe. They, however, do very little in terms of advertising and promotion (Theobald, 2000). STAFFING Management Summary Employees within the store perform their duties within the physical, creative and intellectual boundaries taking into consideration the fact that it’s a new store coming to the place. The delegation of tasks is according to individual potential, and there is a high level of customer service skills not forgetting the personality in order to meet the objectives of the store. It also assesses productivity and more often the employees are evaluated to realize continual growth of the business (Kotler, 1973). Steps in Employment Management process In most cases; the management first undertakes the job analysis that involves the identification of relevant activities and ascertains the credibility of the employees. Next is the preparation of job description where the performance is quantified according to the expectations. The next stage involves locating potential employees depending on their talents. This stage is followed closely by screening process where the candidates go through a test. Finally, there is a selection of employees who are capable enough to perform (Carter, 2009). Organizational Structure Mahogany being a small business has a simple and structure whereby the Chandra Miller acts as the general manager. The decision-making process takes place in line with the objectives of the company and employees are given work taking into consideration their area of specialization (Carter, 2009). Management team All the administrative functions are taken care of by Chandra E. Miller and Co-owner, which involves the promotional activities, purchasing and inventory control. The general manager has ten years experience in accounting, finance, and management operations. In addition, she was the owner of Tattletale’s, a toy store for a period of three years. She has a good background in marketing and other skills like inventory control (Carter, 2009). Personnel Plan There are full-time employees and also part-timers working between 20-30 hours a week. The full-time employees are paid at a rate of $10.00 per hour while those who work in part-time are at a rate of $ 8.00 per hour. There is a holiday for the employees targeting their respective birthdays and is payable. The vacation always goes for one week after twelve months of employment which is also payable (Carter, 2009). Financial plan The expansion of Mahogany Western Wear has a positive cash balance. The central position of the retail enables it always to sell in stock. They also accept checks and even credit cards. Marketing always remains below 15% of the overall sales. The profit realized is also being re-invested back into the store to expand its operations and also for the benefit of the personnel. The key financial indicators are benchmarked into a number of factors like sales, gross margins, operating expenses and inventory turnover (Kotler, 1973). Importance of Trade Area Analysis Since it is a new store, it assist in revealing opportunities of the market that could help the organization and the marketing strategies required to make use of those opportunities (Kotler,1973). PART 2. (A) Store Design In order to create the retail store more attractive to buyers, the company has resorted to numerous strategies. There are conventional designs that lead to generating more sales for the business. Usually, the design begins from the decompression zone where the very first customers enter. Typically it comprises five to fifteen feet space depending on the capacity of the store. This is the very point customers gain access from the outside world to the premise just to see what is being offered. The buyers usually make a judgment on the product prices in relation to the store (Theobald, 2000). The next step is on the right side of the design. It is a well-known fact that many retailers in the region upon entering the premise they turn right by default. The first wall they come across is what we call the power wall that provides the impression of the entity in place. Therefore, particular attention is given to the display side because the customers are always being enticed with the products on display (Theobald, 2000). The next point of the design is the path. It varies depending on the size of the store. Having known that the customers usually turn right. It is always important to make sure customers continue walking to the store to gain access to more products. It does not only increase the chances of buying but also to control the human traffic within the store. The retail has adopted the acicular path to the right to enable buyers walk to the back and front with ease. They have covered the way with a unique texture from the general flooring just to play around with customers mind (Glynn, 2010). The retailers have adopted the usage of an outpost that is typical fixtures relaying information about the product. This encouraged impulse buying while complimenting products in the display. However, it is also important to keep products with high demand at eye level while those in low demand at the bottom or higher up. The store has also kept on changing the speed bumps weekly to create a sense of unfamiliarity to the new customers (Glynn, 2010). Another important aspect is comfortability of the customers, typical customers like women are always sensitive when walking within the premise, and they usually avoid places where they easily brush on others. Therefore, space has been created to cater for such minor challenges. To enhance more comfortability, a waiting area with seats has been designed with places to enable customers stay more within the store. It is important to particular customers come alongside with the non-buyer or even a minor who is not able to make a decision when it comes to buying. The seats have always been kept facing the premise so in order to enable them being top in mind for lounging within the store (Glynn, 2010). Designing the store is a continuous process that goes on every day depending on new market research. It always involves switching up, additions and removing some items that are not important. The primary focus has been the customer’s journey in and out of the store that is being optimized. It is paramount to identify what draws the customers, what to avoid and how they move which should be in line with the design (Glynn, 2010). Importance of staffing to retailers Good staffing leads to good service Service delivery depends on the competence of the employees. Efficient staffing management starts by bringing on board the right persons. This being achieved through interviews where you could easily tell who is capable to perform. Hiring the experienced people usually puts the retail in a good position to sell more and acquire the goodwill of high standard product and service (Dreves, 1976). Trained Employees give good performance When the training is carried out to the staff in all areas of their job description, it gives them knowledge in other areas of the business. They become people of all round who can perform any duty at whatever point in time. The can manage to address clients demand and handle various issues within the business to the advantage of the retailer (Dreves, 1976). Smart scheduling puts to shape the service The team dynamic is being created through selection of the right staff leading to efficient product and service delivery. Sometimes programming creates a struggle for leadership. It is always good to consider a schedule with a complimentary mix of different personality types to strike a balance of workflow where there are no wrangles (Dreves, 1976). Reduced staffing leads to decline of the business Staffers who are not brings down the business. Some become unfamiliar with the product thereby creating resentment to customers and the owner. Adequate staffing ensures excellent quality of the overall business operation (Dreves, 1976). Importance of store design Retailer sales maximization A well designed retail store enables a retailer to maximize his or her sales per square foot of the space within the premise (Levy, 2012). The store environment is the showcase It provides the focal point and the physical touch within the retail. It provides an opportunity to relate to customers directly. The design, therefore, allows the customers fall in love with the product in display (Levy, 2012). Adding inherent value to consumers and retailers The environments where sales take place always add value to customers in terms of experience gaining. Other players in the retail also increase their perception of the brand (Levy, 2012). Positioning brand to consumers Retail design incredibly positions the product to the consumers more especially when the alignment was not correct (Levy, 2012). Boosts understanding The practical design would promote customers understanding of the product thereby leading to better sales. It gives full details of the brand and provide education, it also make the items more desirable to everyone who comes across it (Levy, 2012). PART.2. (B) Application of Theory to staffing in the proposed store There are instances where the knowledge of retail store is applied to ensure efficiency in business operation within Mahogany Western Wear. Considering factors like staffing and store design discussed above, the following application makes sense (Kotler, 1973). Mahogany Western Wear makes proper planning and implementation of strategies therefore it does not take them time to expand. The management has also hired a lot of experts this has been successful in reducing bureaucracies and reduced time needed for marketing. The management has continued to apply knowledge on customer demand and innovative merchandising. It has ensured that the retail store makes profits, but it has provided that they stay on top of the customer demand (Levy, 2012). Staffing of mahogany, western wear is responsible for the various administrative functions. It is a requirement that the manager should have an extensive knowledge of marketing, purchasing and inventory control. Ensuring that the company has experienced staff is essential for mahogany as it will enable proper control of stock and stocking of the shop with the correct merchandise. Experts can carry out research on the choice of merchandise by consumers that help in improving the overall position of the business (Kotler, 1973). Personal information of the customers who buy from the store are kept in a database and processed on time to enable those who buy to have an experience of the content and promotion. Mahogany, Western data of their customers, will allow them to review their customers’ satisfaction. Track of customer feedback ensures that mahogany Western can review their strategy in real time. It leads to correcting or strategies or even making of new ones that are more appropriate. The management has continually employed staffs who know the customer needs and preferences Proper retailing has enabled many organizations move to a higher scale in terms of production and sales. It goes side by side with appropriate staffing and good design being employed (Levy, 2012). Application of the theory to store design in proposed store Store design is very crucial for sales in any company. Mahogany, Western wear is no exception the management has dealt with this by proper design of the stores in terms of Interior decoration, physical layout, and advertising. Consumers are drawn in for the full brand experience (Kotler, 1973). The store can appeal to customers and sell itself. The store design enforces the brand identity of mahogany western wear. Cowboy clothing is a theme that is applied to the mahogany western wear. When you enter a mahogany shop, you are impacted by the amount of branding that are there. A good example is the store located near the Hispanic communities, and the store design is established to meet the community needs. Effective store design honors the legacy western mahogany store space and unites the location or architectural aspects of the brand. Enforcement of a good store design will ensure that the market for products increases due to the attraction of more customers. The design of the stores is favorable to rodeo lovers with designers integrating rodeo themes into the stores. The design of the store will also ensure that once a customer enters he/she will go round the store and view all the products before exiting (Kotler, 1973). Conclusion Retailing of products has gone high as seen in Mahogany Western Wear. The exchange occurs through several channels and demand is created in a number of ways as discussed above. Retailing involves subordinate services such as product display and delivery among others. It is being applied in many fields that help boost the economy and improve the general livelihood (Carter, 2009). List of References Carter, B. (2009). Economic Development Through Asset Transfer (Doctoral dissertation, Worcester Polytechnic Institute). Glynn, M.S., Brodie, R.J and Motion, J (2010) “The benefits of manufacturer brands” European Journal of Marketing Vol. 46 (9) pp. 1127- 1149 James, D.L., Durand, R.M., Dreves, R.A., (1976) “The use of a multi-attribute model in a store image study” Journal of Retailing 52 (2), 23–32. Kalafatis, S. P., Pollard, M., East, R., & Tsogas, M. H. (1999). Green marketing and Ajzens theory of planned behaviour: a cross-market examination. Journal of consumer marketing, 16(5), 441-460. Levy (2012) ‘Retail Management’ McGraw-Hill Sinor, J. E., Agreement, W. P. U. C., & Consultants, J. S. (1989). Niche market assessment for a small-scale western oil shale project. Laramie, WY, DOE report DOE/MC/II076-2759. Theobald, M. M. (2000). Museum store management. Rowman & Littlefield. Read More