An Innovative Premium Brand in WestQue - Essay Example

An innovative premium brand in WestQue Table of Content Introduction 3 Overview of market profile for West Quay Shopping Centre 3 Market Profile for proposed brand 5 SWOT Analysis of your proposal 7 Marketing campaign suggestions for new store opening in West Quay 9 Conclusion 9 Reference 10 Introduction This paper represents market survey and analysis of a popular shopping centre based in Southampton, United Kingdom. Name of the shopping centre is WestQuay. Objective of this market analysis is to assess the viability of a new business of luxury or premium products in this retail park. So, this paper will provide a detail analysis of current market scenario of this shopping centre. This includes an overview of diverse categories of retail businesses in WestQue, purchasing behaviour of the people of Southampton who are frequent visitors of shopping centre, demand of retail products etc. Analysis of these areas will help to assess the need of a new business in this retail park and also viability of the new business will be discussed on the basis of market analysis of WestQue. Swot analysis of the new business will also be developed to analyse the internal factors of this business like strengths and weaknesses of the business with respect two main external factors like opportunities and threats. The new business also needs effective market campaign to make awareness of their products and services and even the presence of this business in the shopping centre. So, effective market campaign will also be recommended based on the market analysis. Overview of market profile for West Quay Shopping Centre Since the inauguration day, shoppers entered through the doors on 28th September, 2008, accessibility and availability of all common needs of visitors has been the main focus at WestQuay in Southampton. In only one decade, it has established itself as one of the largest and leading destination of best shopping experience of the consumers. This retail park has received more than 120 million visitors since the opening day. WestQue has huge retail space of 800000 square feet which consists of two departmental stores and around 100 shops including top most retail brands like Marks & Spencer, Joan Lewis, Schuh, Zara, Holister Co, Waterstones, Apple and many more popular domestic as well as international brands. This shopping centre is situated in centre of Southampton city. It has entrance on the high street named Above Bar Street on Portland terrace. Apart from accessibility of so many popular retail brands, another attractive feature of this retail park is its multi storey car parking. Another attractive feature of this retail hub is its use of geothermal energy which is application of high technology. The owners of this leading retail hub is Hammerson Plc, a 100 FTSE company which has been developing and managing retail destination or shopping centres for more than fifty years in Europe. WestQuay commits to welcome visitors cum consumers through divers accessibility and availability of retail goods. The root cause of growing attraction of the potential consumers towards this shopping centre is the capital and physical investment from major retail brands from domestic and international market. Quality of shopping experience has been increasing due to the comprehensive training program for the staffs. This retail hub has rewarded with clutch of awards for better shopping experience of the satisfied customers. WestQue runs through 70 directly employed staffs which include a large team for high security and better customer assistance. The objective of these training programs is to ensure quality advice, support and assistance for the visitors during trading hours. A comprehensive shop mobility scheme is the main focus of facility and services at WestQue. This shop mobility scheme is operated through a unit located in the centre of this shopping mall. Electronic way findings systems for visually impaired people and induction loops throughout public mall areas and 32 open lifts around the building are the main features of shop mobility scheme. Quality of service and customer satisfaction is measured by frequent visit of a team of mystery shoppers and their survey report. WestQue was named as overall winner in the British Council of Shopping Centres after its achievement of Customers Excellence Awards in 2007 (WestQuay, 2009). The location of this retail park is surrounded by more than 2 million people within a 60 minutes drive. Out of this 340,000 people within 15 minutes drive is the primary catchment of this retail park who contributes maximum of the frequent visitors. Total annual non-food consumption value was near about £5.1 billion in 2011. Neighbour towns of this shopping mall are Bournemouth, Winchester, Salisbury, Portsmouth and Fareham. Average weekly footfall is 330,000, more or less similar to the largest and leading shopping centres in United Kingdom. Average individual consumption trend is £65 per visit excluding food products. Average frequency of visit is 3.7 visits per month of the potential customers within the surrounding distance of average 81 minute drive from the shopping centre. Market Profile for proposed brand Based on the market analysis it can be said that WestQue consists of many luxury or premium brands. Maximum brands present here focus at the higher income level people. But there is a lack of very common necessity products and services like a shop of several branded smart phones and service. Mobile phone has become the most essential goods. Smart phones of different brands especially top brands are becoming popular day by day to the younger generation. But it is difficult to them for doing phy6sical comparison of different branded Smartphone. Apart from the purchasing point of view, there is a huge demand for support and service of these phones and its accessories. So, WestQue is the place where maximum of the visitors are from above average or higher income level individuals. Perhaps there is higher possibility that a segment of younger generation people will contribute major percentage who keeps themselves with the latest version of Smartphone and gadgets of different brands. If these large segment of customers base of this shopping centre get an access of a Smart Zone where they can not only buy a phone by comparing top brands including latest models from the domestic as well as international brands, it will be major benefit to the potential customers as well as the proposed business of smart phone sells and service. Name of this innovative business can be recommended as Smart Zone which will offer diverse price range of mobile phones of top brands. This sells division of this business. Another important division is service. It will provide fast service and support to the customers. It will provide service for all brands and models. For service its own customer who will purchase from them will get extra time for fee service according to the price of the phone. Smart Zone will get a huge customer base at a single location where average weekly footfall is 330,000. So, there is possibility of some percentage of these visitors having needs of support and service for their most essential utensils. A survey of the top mobile brands says that standard life cycle without any support and service for a new mobile phone is 1.5 years. After this period it generally shows some problems. So, it can be estimated that Smart Zone will get enough customer daily basis from these huge customer base as maintenance free life cycle of a new mobile is low. Other important parameter to measure viability of this business is competition with other business of similar category. There is no such business in WestQue with a complete package of mobile sales and service. Unique selling proposition of this business is it offers a diverse portfolio of domestic as international brands of mobile phones and its accessories. Therefore the customers will get access of wide variety of brands and models at one location which will enforce them visit the shop at the time of need of purchase or service. So, this business of mobile sales and service will be much viable in this location. SWOT Analysis of your proposal To analyse the internal and external core factors of this business SWOT analysis need to be done. External factors like opportunities and threats will be assessed based on the location or market analysis. Internal factors like strengths and weaknesses will be analysed on the basis of internal capabilities and weak areas of the business. This will help the business to focus on its weakness and transform those into its core opportunities with the help its core strengths. Opportunities can be utilized with efficient use of strength. Strengths Major strength of Smart Zone is its two division of its business i.e. sales and service. Generally this type of business activities is followed by mobile producers who provide after sales service facilities to the customers. Basically the customers have to assess the service centres in different locations and they do not bother waste time for find out the service centres rather they like to find nearby mobile service centres. But Smart Zone is providing complete package of sales and service at one destination which is also in a place where do not have to come only for mobile sales and services, they can fulfil other purchase needs. Other strength of this business is that is it offers many popular domestic or international brands of mobile phones and its accessories. So, customers always like to buy from a wide variety of products. Weaknesses The business is new in the market and it does not have any customer base. So, initial operating cost will be higher than its operating earnings for first few months. It needs to focus on the promotion than sells at initial stage to develop a strong awareness and market presence. Smart Zone needs to clearly distinguish itself from the company outlets in terms of price, variety and extra free after sales service. Therefore, all these are major weakness of Smart Zone at its initial stage of business. Opportunities Smart Zone has many opportunities with respect to the target market of this business. It can get access of more than 3 lacks visitors per weak among which repeat visit of the customers contributes very minimum percentage in a week’s total numbers. Demand of expensive or premium mobile phones is increasing as it has become a luxury product. Average income level of the target customers is sufficient for changing their mobile phones every year. The people of higher income level want to update themselves with the latest version and models of top brands. So, opportunity of this business is huge in terms of location, demand, and purchasing capability and behaviour of the target customers. Threats Though this business has major strength still it has some weak areas of its business. Major threat is possibility of low customer trust on the new business. Mobile has become a luxury along with the necessity. People generally like to buy expensive mobile phones for luxury not only to fulfil necessity and for this reason they like buy from company showroom or outlets. So, customer psyche might affect the business at its initial stage. Marketing campaign suggestions for new store opening in West Quay Smart Zone needs to develop effective promotional strategies along with effective marketing strategies. Strategies are to develop on the basis of analysing demand and consumer behaviour of the target customer. Initially they can organize weekly events at the centre of the shopping for weekly basis for first one month. It will make aware of the products and services offered by them to most of the frequent visitors of this WestQue. Next promotional strategy will be advertising on the magazine published by WestQue, regional newspapers, youth magazines etc. It needs to offer exciting price for package of mobile plus essential extra accessories or extra free service periods for six months. Price of mobile phones needs to be less than company showroom price. Conclusion Market potentiality of WestQue supports the business of Smart Zone. This is a premium brand that offers premium brands of mobile phones, accessories, and support and services. So, it matches the business culture and characteristics of other premium brands present in WestQue. Most of the people are highly brand conscious and they have higher purchasing power and also consumption trend. Most of the brands fulfil luxury not only necessity. So, Smart Zone will be one unique business in WestQue which offer a portfolio that fulfils high necessity of mobile service, necessity of purchase of new phones among various top domestic and international brands. Reference WestQuay. (2009). About WestQuay. [Online]. Available at http://www.west-quay.co.uk/website/About.aspx. [Accessed on 16 August, 2012]. Read More