Distribution and Retail - Essay Example

Distribution and Retail By Marketing of Table of Contents Table of Contents 2 Case one: Rimmel introducing a new product (Perfume) 3 Introduction 3 Online retail chains 4 Case two: Retail Layout of ShuYou 6 Layout and design 6 Store Ambience 7 Location 8 Fitting and fixtures 8 List for references 11 Case one: Rimmel introducing a new product (Perfume) Introduction Like any organization, the Rimmel Cosmetics depends largely on the traditional retail chains for its products. The company deals with various cosmetic products which include blusher and nails polish among others. For a long time the organization has been able to expand its market niche within the local and international markets due to its strength in value for money. This implies that, the products offered to the consumers are of high quality. This is one of the foremost strength that characterizes Rimmel. Value for money policy has made Rimmel to remain on the competitive edge despite stiff competition from other players in the industry. It is notable that, the use of traditional chains of retail which is widespread in various nations which include Hungary, Australia, Belgium, China, US, Japan and Mexico among others has seen the company grow due to its strategic one meter long display unit. This exhibition offers the consumers to a chance to make a buying decision based on the colors, taste and preference. In the case of the intended introduction of the a perfume into the market, the TV add indicating a trendy and fashionable 18-24 year old woman, indicates a modern generation. The woman is attractive and appears to be a leading a varied and active life. However, the ad does not have any attributes for the value for money which is the strength of the organization. The question whether the intended perfume should be distributed through the traditional retail chains can be answered by citing numerous aspects in the advert that cannot allow such a plan to work. In first place, the woman in the advert depicts modernization, which is characterized by aspects such as advanced technology and use of internet among others. The age bracket in which the woman falls (18-24) is the most active market segment for perfumes across the globe. This age group does everything to ensure that they look and smell good (NEWMAN & CULLEN, 2001). This implies that spending for the most expensive perfumes is not an issue as long as it satisfies their desires. Use of technology and internet based devices by this groups is one of the very features that distinguishes this market segment with the rest of the population. This implies that the impression created in the advert that the product is meant for the young women who are technologically informed, would necessitate use of a different retail chain which can offer the desired taste and preferences with a lot of ease. This brings us to the use of online retail and supply chains for the intended perfume. Online retail chains The intended perfume as pointed earlier is meant for a certain market niche of young women aged 18-24 years. This group is more attached to technology such as use of internet to search for information. In the case of the new product, once it is advertised on TV, majority of the users will want to search for more details such as the prices and the efficient supply chain. This implies that Rimmel management will be compelled to create an online retail chain for this particular product. According to AMES (2014), 84% of the global internet users are young people aged 18-24 with 43% females. This explains a shift from the traditional way of doing things of this group of people. The situation is similar in buying. The trends of this group reflect a different generation which is more attached to trending fashions, innovations and even platforms of doing business. This scenario indicates the driving force that will compel the Rimmel management to invest in the online retail and supply chain. From the advert the woman is trendy and fashionable, the impression behind this statement is that the generation is modest and the possibility of association with traditional way of doing things is flimsy. This leaves a challenge to Rimmel which has for centuries depended on the traditional retail stores to reach out its customers to change with the market trends. According to GALE GROUP (1991), 30% of the young women aged 18-24 trade online. What does these statistics reflect? What should the Rimmel management learn from these data? If the total population of women aged 18-24 who use internet are 43% and the segment that trades online form 30%, then this clear reflection on how the present society is trending in terms of market platforms (SAMLI, 2003). The generational dynamics which characterize the majority of the world’s population have revolutionized the manner in which business transactions are done. Reflecting on the case under consideration, the Rimmel management has no option other than to embrace the current technological options such as creating online retail stores for its consumers who have shifted from visiting the retail physical shops. The online retail stores will certainly meet the expectations of these market segment, which is either too busy to visit the physical stores or embraces what technology offers and hence do not see a reason of walking through the stores in search of the products that they need. The aspect of value for money impression missing on the TV advert is not an issue that can affect the consumer preference for Rimmel products since, for many years, Rimmel products have been attributed with top quality which translates to value to the consumer’s money. With no doubt, Rimmel products have strong power of brand, which has helped it to remain on the competitive edge. With this extent of branding attributed to quality, there is no big impact that the ad can create to the consumers’ perspective that the intended perfume is of low quality. It is believable that the consumers will trend normally with the new product since it is attributed to the Rimmel which is known to offer the consumers what is best and equal to their money (SULLIVAN & ADCOCK, 2002). In essence, the technology has revolutionized the business world and each time a product is introduced into the market, such factors relative to the internet use and business should be considered, particularly in cases such as that of Rimmel. Conclusively, Rimmel should embrace the generational dynamics and their impact in the business world and should consider embracing the online retail chain for the women aged 18-24 who are going to the primary market target for the new product (Perfume). The traditional retail chain might not help much in creating a market niche and expanding it for this product. Case two: Retail Layout of ShuYou ShuYou is a retail for shoes, which is situated on the High Street, where a good representation of national chain stores sells clothes and shoes are located. The size of the store is 1200 square meters. The frontage for the store measures 6 meters and a depth of 20 meters. The strap line of all the advertising is “At the Feet of the Family”. Since there are numerous stores that surround the ShuYou store and have similar advertising slogan, then there is a dire need to restructure the layout of this store to have various distinctive features that can be of immense use for marketing. It is imperative to note that, retail can have the best quality of products and best prices but rarely to you see customers entering the store (RAJAGOPAL & CASTANO, 2015). The answer is simple how well is the store designed, the extent of the store ambience, the fittings, fixtures and atmospherics. Layout and design In terms of layout and design, it is always good sense to give more focus on the innovative energies on the manner in which the signage and storefront will appear. For instance, the business name should be well written and should always appear refreshed as if designed and written yesterday. The store’s signage should be well-lit, particularly in the evenings. This helps in giving an edge over the opposition of other players in the same industry or street in this case. Store Ambience In terms of store ambience, the environment inside the store should be designed in such way that, the clients linger for a long time in the store. It is imperative to note that, the longer the customers spend in the store, the more likelihood of making a buying decision. This explain that the store should have a good welcoming, friendly and striking atmosphere fitted with adequate and appropriate color mix of lighting. The walls should be finely painted to an attractive décor. A soothing music relative to the customers’ demand should be played from a music system installed at the reception with fine speakers positioned at every 20 meters across the whole store. The volume off course should be moderate and soft (CLODFELTER, 2012). The primary purpose of the store signage is to convey the retailer’s message to the client in the clearest manner. The message of quality, commitment to the consumers and superior branding are some of the aspects that the retailer communicates to the customers. In addition, the store signage should be educative and helpful to the clients to ensure that they find what they need without much time wasting. With the big size of the ShuYou shoe store, the trial rooms should be designed to have a measurement of at least 15 m by 15 m. This offers adequate space for the clients to make try and make choices on their preferences. According to HAVALDAR & CAVALE (2007), 70% of the consumers ‘buying decisions are attributed to the five sense of the store ambience, which include smell, taste, sound, touch and sight. The ShuYou shoe store should have the five sense-patterns well integrated within the 120m by 120 m space. For instance, the collection of the shoes on display should always be on the trending fashion and in tandem with the dynamics in preference of the consumers. In essence, the in-store appearance should be superb (SIVAKUMAR, 2007). Location Since the store is situated along a high street, the outside design should in such a way that, it is the only one that can be seen by the passersby. For instance, there should be a wide entrance measuring 30 meters wide. This space is adequate for in store visualization from outside. The clients can be able to visualize what the inside looks like from outside and this will attract them to enter. In addition, there should be an attractive pattern of lighting hanged outside at point of 3 meters apart. This brightens the space outside and thus creating a catching atmosphere for the potential buyers to stop and admire and this ultimately directs them into the store. The surrounding milieu should be clean and welcoming, particularly the front of the store. There should be no litter around the store (NEWMAN & CULLEN, 2001). This creates a food impression to the potential consumers. Fitting and fixtures The shoe fittings should be of superior quality to depict the nature of shoes sold in the store. When high standard fittings and fixtures are installed in the store, the retailer finds it easy to communicate the reason for his standard prices. In essence, the sore should appear quality and modern. Consider the following example which is recommendable for ShuYou shoe store. Source: http://image.made-in-china.com/2f0j00iKDQoIHqITuY/Usefull-Shoes-Store-Display-for-Retail-Shop-Fixture.jpg The in store design is a critical element in retailing since it plays a crucial role in the buyer’s decision making. As pointed out earlier, majority of the buyers makes their decisions while in the store. Some of the attributes that are connected to this process of making decisions include the overall ambience of the store, fittings and fixtures design, display of the shoes and customers service. It is notable that, ShuYou can have presently have quality shoes at best prices but no or less sales recorded in a day. This is attributed to the general design of the store. ShuYou store should embrace the technological approach to make the store modern, presentable, appealing and enjoyable. As described, the essence of best design of a store revolves around two critical points which include attracting the potential buyers and keeping them longer inside the store in a bid to endear them to make purchasing decisions (SAMLI, 1998). With the discussed steps implemented in the new layout for ShuYou, there is no doubt the store will be able to capture the human traffic and have it flow into the store. This implies that purchases will increase and consequently increased revenues. Improving the image of the store is regarded as retail store rebranding, which usually comes along with benefits attributed to high client flow into the store. Hence the new ShuYou retail store should appear as follows. Source: http://www.reliant-inv.com/wp/wp-content/uploads/2014/05/shoe-stores-inventory-solutions.jpg List for references AMES, J. D. (2014). The internet and the Google age: prospects and perils. GALE GROUP. (1991). Educational rankings annual. Detroit, MI, Gale Research. SAMLI, A. C. (2003). Strategic marketing for success in retailing. Westport, Conn, Quorum Books. HAVALDAR, K. K., & CAVALE, V. M. (2007). Sales and distribution management: text and cases. New Delhi, Tata McGraw-Hill. SULLIVAN, M., & ADCOCK, D. (2002). Retail marketing. Padstow (Cornwall), Thomson RAJAGOPAL, & CASTANO, R. (2015). Understanding consumer behavior and consumption experience. http://services.igi-global.com/resolvedoi/resolve.aspx?doi=10.4018/978-1-4666-7518-6. SIVAKUMAR, A. (2007). Retail marketing. New Delhi, Excel Books CLODFELTER, R. (2012). Retail buying: from basics to fashion. New York, Fairchild. NEWMAN, A., & CULLEN, P. (2001). Retailing: environment and operations. London, Thomson Learning. SAMLI, A. C. (1998). Strategic marketing for success in retailing. Westport, Conn, Quorum Books. Read More