Developing a Retail Brand - Essay Example

Introduction Developing a retail brand requires in-depth research and analysis of various factors. In order to come up with a unique and well-differentiated brand, one must survey the potential market, the competition, and the performance of the industry to which it belongs to. In this paper, a discussion of the development of a retail store to be located in the Westfield mall will be undertaken. Specifically, the store will be a new concept in jewellery stores that will take up a place in the Westfield Mall located in Bondi Junction. Bondi Junction In this section, Bondi Junction will be described. Moreover, the demographical information regarding the community will likewise be described. Such information is valuable to the development of the brand since the people in the community are the primary consumers who have the easiest access to the store. The Place Bondi Junction is one of the suburban areas located in the eastern section of Sydney. The said locality is found 6 km east of Sydney's central business district. The governing body in Bondi Junction is the Waverley Council. The area covered by Bondi Junction is quite small at 0.8 sq. km. However, it has outgrown its size and has greatly developed. Bondi Junction is easily accessible by public transport as there are several means of mass transportation that travels to and fro the said area. The Eastern Suburbs railway, part of the CityRail system, passes thru and stops at the Bondi Junction station. Above the said station is a bus terminal wherein buses that travel to various locations are found. ("Bondi Junction", 2006) Due to continuous and fast-paced developments, Bondi Junction has emerged as the fifth largest business district in Sydney. Moreover, Bondi Junction is home to several strip-mall types of developments. Also, several shopping centres are located in the area. However, the most prominent of these shopping centres is the Westfield Bondi Junction which is considered as one of the largest shopping malls in Sydney. ("Bondi Junction", 2006) The said shopping complex is the proposed location for the jewellery store under conceptualization and development. The People The population in Bondi Junction as of 2001 is 6,299. The population at the said time was growing at a rate of 2.2%. There are more women than men that reside in Bondi Junction. According to The Public Practice Pty Ltd (2001), women in Bondi Junction outnumber men by a ratio of 104 to 100. More significantly, majority of Bondi Junction residents are in their prime working age with 52% of the population falling in the 25-54 age range. The second biggest demographic group is 55-74 age group, which makes up 14% of the population. The people in Bondi Junction are very family oriented with majority of the population living in families. Most people reside in 4 or more storey buildings. Others lived in townhouses, walk-up flats/units, or separate houses. Moreover, most of these houses are private rentals. (The Public Practice Pty Ltd, 2001) The working population in Bondi Junction earned an average of $780 a week. However, the average weekly wage for men was greater than that of women. The men and women in the prime working age (25-54) had the highest weekly average at $1,090 and $890 respectively. (The Public Practice Pty Ltd, 2001) The Sydney Retail Market According to Foster (2005), "Australians have a high living standard and make beautiful houses, clothes, cars, yachts, food, wine and women." Sydney is one area which demonstrates such traits. Being one of the foremost locations in the whole country, Sydney will, by far, best symbolize the culture and lifestyle of Australians. Foster stated that Australians have a unique way of life. He said, "This lifestyle is shaped by its geographical remoteness and the ways by which it became a European outpost in the 18th and 19th centuries." (Foster, 2005) Basically, the culture in Sydney is an integration of the various cultures and peoples that have chosen Sydney and Australia as their home. There is much cultural diversity in the country. People in Sydney have much purchasing power even for luxury goods. This is made evident by the fact that Australians own over 13.5 million cars which means that for every 1,000 residents, there are 675 cars. (Foster, 2005) Despite such liking for cars, Australians are not very inclined to purchase luxury items such as well-known brands of watches and jewellery. According to Mark Watson of Swatch Group, "The Australian consumer would rather spend discretionary income on other items apart from luxury watches [such as] property, renovating, property investment, jet skis, boats and BBQs!" This means that Australians are not about glitz and glamour. They are more about fun and long-term investments. In this case, one can assume that a viable market in Sydney would be one wherein glamour is integrated with fun. For instance, making watches or jewellery funkier and less stiff as some brands are known for, is key to penetrating the Sydney market. Jewellery all over the World The two biggest markets for jewellery in the world is the US and European market. Moreover, most of the famous brands in the world are found in the said markets. According to Unity Marketing, "American consumers spent $59.4 billion buying jewellery and watches," in 2005. The growth rate for the jewellery industry was in fact higher than the growth rate of the overall durable goods sector. One well-known American jeweller is Tiffany and Co. The brand is recognized not just in the American market but in the global market as well. The brand specializes in diamond jewellery and rings and bracelets that when spotted, can easily be identified as Tiffany's. In Australia, the company has three retail stores which are located in Brisbane, Melbourne, and Sydney. (Tiffany & Co, 2005) In Europe, several French and Italian brands are known worldwide. However, the Europeans do not purchase as much jewellery as the Americans. When combined, European countries account for only 27% of the world jewellery market. The US on the other hand makes up 46% of the said market. (World Gold Council, 2006) However, Europe houses some of the most famous jewellers in the world today. These include Cartier, Bvlgari, and Philippe Charriol. These brands have established themselves all through out the world and have become global brands by establishing their presence in various markets in the world. Primarily, jewellery is made for the woman. Women, most especially the high-income women are the primary targets for jewellery retailers. In certain occasions, men purchase jewellery. However, in most cases, they buy them as gifts for women. In the global market, women are the target markets for jewellery retailers and designers. The Marketing Mix The primary product of Silver Avenue is jewellery. However, Silver Avenue is likewise selling the experience of buying the said product. Silver Avenue will be a combination of two designers, Adina Jozsef and Emma Wood. Each designer is specializes in separate areas in jewellery design. Koukii Designs specializes in creating modern and trendy gold and silver jewellery. On the other hand, Emma Wood is known for customizing jewellery according to the client's specifications. Silver Avenue will market these two concepts. The store, located in Westfield will have two floors. The first floor will be directed for customers that are looking for retail jewellery. These would be part of the Koukii Designs collection. The second floor will house the Emma Wood collection. Customers looking for custom made jewellery such as wedding rings or engagement rings will be accommodated in this section. Silver Avenue will be promoted as an all in one jewellery store which is both trendy and classic. It will be promoted by using advertisements within Westfield itself. The internet will likewise be utilized in order to promote the new concept of Silver Avenue. The Brand Silver Avenue is a new concept in the retail jewellery industry. It will combine ready made jewellery with custom made jewellery to give customer greater flexibility. Also, the product line of Silver Avenue will attempt to meet the needs of the market by providing them with more choices. Brand Positioning In order to better define the position of Silver Avenue in the market, a perceptual map is shown below. "A perceptual map defines the market in terms of the way buyers perceive key characteristics of competing products." (Tutor2u.net) Moreover, it can be used to show where a certain brand is in terms of two characteristics. In the case of Silver Avenue, its main category is jewellery. In choosing jewellery, most buyers consider primarily price and quality. The perceptual map shown below shows the position that Silver Avenue will take up in the market. Basically, Silver Avenue will offer products that are of good quality yet affordable prices. Quality is brought about by the variety of products that the store offers. Moreover, since the store can likewise cater to specifications of the client, he can ensure that what he is getting is what he really wants. This is the manner by which Silver Avenue brings quality to its products. Brand Values Silver Avenue aims to give its customers a momentous experience every time that they visit they store whether or not they purchase something. Building unforgettable experiences is the manner by which Silver Avenue aims to strengthen its brand and build customer loyalty. Also, Silver Avenue aims to offer its customers the unique experience of having a venue in which they can choose between ready made jewellery or have their jewellery suited to their specifications. Quality is assured since Silver Avenue houses two designers that are known for their craft and their creativity. Brand Proposition Silver Avenue thrives on its ability to offer the market variety and quality. More importantly, the store provides its customers with experiences that they will find uplifting and unforgettable. These will be done through the quality of the products as well as the quality of service offered. To further convey Silver Avenue's proposition to its customers, the following statement was created: Silver Avenue offers momentous experiences through the quality and variety of its jewellery and the brilliant customer service. Experience Proposition As previously mentioned, building momentous experiences is the goal of Silver Avenue. Its aims to make buying jewellery fun and worthwhile for its clients, not only because of what they buy, but also because of how and where they buy it. The unique experience proposition of Silver Avenue is the 5-star treatment that its staff provides the customers. Although the brand may not be a luxurious brand like others, but Silver Avenue guarantees that its customers will receive the same kind, if not better, service from them just like that of the more well-known and luxurious brands. Brand Identity and Naming Silver Avenue will be established as a brand that offers a variety of jewellery to its customers. Clients can choose from funky and trendy designs to the classic and truly exquisite ones. Also, Silver Avenue will allow customers to have their jewellery customized. This is especially relevant for wedding and engagement rings. The identity of the brand is that it appeals to women both young and old who crave for jewellery that is either funky or classic. It offers its clients quality choices. That is the identity that Silver Avenue will create. In order to show that clients have a wide range of choices, two logos were created. One logo (Figure 1) is meant for the section of the store that will cater to clients looking for trendy and fashionable jewellery. The other (Figure 2) will be for the section that specializes in customized jewellery particularly wedding and engagement rings. Figure 1 Figure 2 The use of different logos will signify that Silver Avenue caters to two market areas. One market area is trendy while the other is elegant and timeless. Basically, Silver Avenue combines the wonder from the past that has prevailed until today with the funk of present times. It is an integration of what most customers would want in jewellery. The Target Market The primary target market of Silver Avenue will be women. Specifically, women in the prime working ages of 25 to 54 will be the client base that Silver Avenue will attempt to attract. These women work and earn their own money. The single women are more significant since they only spend on themselves. On the other hand, mothers and wives may not have as much disposable income. However, both types certainly want to own jewellery, one way or another. Women in such ages vary in terms of what they want in jewellery. Some want what is elegant and classic, while others want what is in tune with the trends and fads of today. With the variety that Silver Avenue offers, the brand will be able to meet both of such wants. Also, since Silver Avenue customizes engagement rings and wedding bands, it aims to target the male market as well. Men in the prime working age group are also part of the target market since these are the men that are in the marrying stages. The Competition An analysis of the nearby areas of Bondi Junction reveals that a significant amount of competition exists in the location. There are a total of 56 jewellery stores in the area. 36 of such stores are located in other shopping malls in Bondi Junction. However, Silver Avenue's direct competitors will be the 20 jewellery stores that are located within Westfield Bondi Junction. (www.westfield.com) Some of the jewellery stores are the following: Bijoux Georg Jensen Goldmark Gregorys Jewellers Jacobsons Jewellery Magnolia Silver Mondial Neuman Swarovski Each of these stores specialise in either what is classic and exquisite or what is funky and trendy. None of the aforementioned stores offers both in one venue and enhances the product by creating a momentous experience. This is the biggest advantage of Silver Avenue for it offers the customer a variety of choices and a wonderful experience every visit. The Site The site upon which Silver Avenue will be built is the place previously occupied by Country Road in Westfield Bondi Junction. Basically, the store will be located at the Myer side of the building on retail level 3 and 4. A picture of the current store in the said place is shown below (Figure 3). The main disadvantage of the location is that it is on the Myer Side which is only accessible by bus. Moreover, the said side of the centre is prone to traffic noise. However, Westfield Bondi Junction has walking paths which connect the two sides of the two sides of the centre. Moreover, Westfield Bondi Junction provides ample parking space and has valet services as well. This will provide visitors with greater ease and convenience in visiting the store. Figure 3 The conceptualized store layout for Silver Avenue will be a two-floor layout. The first floor will house the area where the modern pieces of jewellery will be showcased. The second floor will contain the area where customers may request their jewellery to be customised most especially wedding bands and engagement rings. Chairs will be provided and drinks will be served in order to make the customers feel as comfortable as possible. This will enhance the experience of customers and make their visit as memorable as possible. The store will have two themes to coincide with the climate. When it is summer, the store will have a white layout (Figure 5) while winter times call for a black layout (Figure 4). These two themes are shown below: Figure 4 Figure 5 The layout designs show a combination of classic and trendy. Moreover, it conveys glitz and glamour. These are the elements that Silver Avenue wants its customers to experience not just with its products but with their visit as well. Works Cited: "Bondi Junction, New South Wales." Wikipedia, The Free Encyclopedia. 22 Sep 2006. Wikimedia Foundation, Inc. 15 Oct 2006, . Brand Propositioning. 2005. Curriculum Online. 17 Oct 2006, . Forster, Martin. "Australian Market Focus." Europa Star, 7 September 2005. 15 Oct 2006, . The Public Practice Pty Ltd. A Community Portrait of Bondi Junction compared with Waverley. 2001. Waverley Council. Unity Marketing Inc. Jewellery Report, 2006 Update: The Who, What, Where, Why and How Much Of Jewellery Shopping. 24 June 2006. Websites Cited: http://westfield.com/corporate/about/index.html http://www.reference.com/browse/wiki/Tiffany_%26_Co. http://www.tiffany.com/International.aspx Read More