940 3 retail 2nd lecture

7/28/2019 940 3 Retail 2nd Lecture

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RETAIL MARKETING

LECTURER: VALERIA VOLPONI

. .


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market potential

Aims of the lesson:

Understand how and on what basis the store

location policy is developed

Understand the importance of the location

decision to the retailers marketin strate

Analyse the spatial characteristics of sites within


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retailers marketing plan

Choosing a location is CRITICAL

The location determines the type and number of

people the store will attract

Good locations provide easy access to large

number of tar et consumers and increase otential

sales

significant impact on the market


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A definition: outline that translates the retailers,

to the SPATIAL PATTERN OF DEMAND and the

AVAILABILITY OF DESIDERABLE SITES

It targets the retailers investments toward specific

locations and market areas


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It starts with the analysis of the retailers marketing

This decision must be consistent with the firms

overall strate


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Next, the firm must analyse the spatial aspects of

Three steps

REGIONAL ANALYSIS

AREA ANALYSIS


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.

Identification of regional markets: cities, towns,

The retailer is concerned here whit regional

variations in demands for goods and services andwith variations in the level of retail competition

He compares regional demand and supply, and

then ranks regional areas according to theirpotential


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The population characteristics and the level of

areas within a city or town

surrounding potential sites

e emograp c an soc o econom cscharacteristics of the population surrounding each

site must be carefull evaluated

They will ultimately determine the sales potentialof the site


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Its the final step, which focuses on the

may be located

The characteristics of each site are analysed withrespect to

TRAFFIC FLOW

COMPATIBILITY


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Compatibility is one of the biggest issues

The principle of compatibility requires that theres

no interruption in shopper traffic and that

customer interchange must be at a maximum

The maximum business otential is available in

location where the compatibility principle

operates

Some business are compatible, others are not


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Does business A next door help business B? Or

on business B?

Shopping centres & brand mix

A hi h de ree of com atibilit exists between two

business which, because of their proximity, achieve

more sales together than they would if separated

CUMULATIVE ATTRACTION = SHOPPER

ATTRACTION


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North East Ohio retail development

http://planning.co.cuyahoga.oh.us/retail/report.ht

ml


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The greatest risk in opening a new outlet is that it

The location problem can be divided into two

distinct tasks:

1. A eneral evaluation of the otential available in

a competitive market

profitably to support an additional store?


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2. It involves the specific delineation of the,

retailers

Given sufficient potential, where is the bestlocation to serve the available potential?


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obvious

Since each type of store has a unique target

.each has its own location requirements

Home improvement centres rely on home owners

Supermarkets are more concerned with the

general level of population

A childrens clothing store requires careful

attention to the number of families


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The location policies of service retailers differ also

strategies

RESTAURANTS

Hi h class = Hi h income nei hbourhoods

Fast food restaurants: focused on lunchtime go for

,

locate near roads, airports, and tourist spots


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It is possible to calculate the amount of retail sales,

reasonable accuracy

It is also possible to quantify certain characteristicsof retail facilities in any geographical area

These two factors can be combined to form an

index of retail saturation


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Site evaluation systematically examines the

feasibility as locations for new stores


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1. TRAFFIC FLOW AND ACCESSIBILITY

Number & types of vehicles

Access to major roads

Availability of mass transit

Quality of streets whithin the area


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2. RETAIL STRUCTURE

Number of competitors in area

Proximity to business area

Collaborative retail promotion


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3. SITE CHARACTERISTICS

Available number of car parking spaces

Visibility of site

Ease of entrance and exit

Public image of the area


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4. LEGAL AND COST FACTORS

Type of zoning

Local authority responsibility


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Common

Discuss why, in your opinion, the residents are

developing an area it claims to be a derelict site

What would you consider to be the major attractionof this location to Tesco?

Happy ending or not?


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A multichannel fashion system Ten years ago: limited choice single branded

stores or department stores

Today: mature, frivolous, nomad approach to

fashion

Consumer want to buy what they want, when and

Real & virtual channels


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Single branded stores

Flagship stores

Temporary & guerrilla stores

Internet


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Most typical choice for haute couture brands

They set the brands presence in the most iconic

and famous streets of the world

Emerging brands choose emerging areas

Meatpacking District New York

Islington, London


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world

,

venue des Cham s-El sees Paris

A two percent increase to $1,256 a squarefoot


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world

,

The avera e annual rent fell 10.7 ercent

from a year earlier to $1,250 a square foot


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world

,

Bay

Rents climbed 1.3 ercent to $1,205 a

square foot


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One level

Squared or rectangular plan

One to three windows


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Relax area

Visual concept very classic, yellow, beige,

g grey

exclusivity


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e r s s ac o en y

Too basic use of visual merchandisin

Salespersons are vital


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of the merchandise assortment

The store must be an experience provider


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critical mass it can decide to go for a

boutique

They display the entire collection

,usually spectacular, like the location

There is space for brand extension


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project

Dresses are not the centre of the store

s a ran exper ence


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Layout: 4 floors. Organised to increase store traffic: Polo

, ,

ground

Entrance on seasonal collections and mens wear


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Ralph Lauren wants to transmit a concept, an idea: your home in

, .

A problem solving approach, that gives suggestions and a style

easy to copy

Visual merchandising is adjusted according to seasons

Paris: a step forward in customer service, with the opening of

the first Ralph Lauren Restaurant. Country stile ambiance,

m xe w a as e o e o mes, g c ass cu s nean t e

meat served comes from the designers ranch in Colorado.


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+ 40AVOCA, GRAFTON STREET, DUBLIN

Layout: 4 floors

Two different areas for food: lower ground (a way to increase

floor, with a cosy restaurant

High standard made in Ireland clothes and accessories, set in

rooms completely furnished. Every detail is studied to confere

,

+ 41


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3.300squaremetres,4floors

SPA,NailBar,hairdresser

Adesigncentertodesign,in30minutes,yourBarbie

FashionRunway,tomakeyourcatwalkdressedasyourfavoriteBarbie

, , ,chocolates

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Ever thin under the same roof

It was the easiest way to shop

They are undergoing a radical process of

From reassuring boxes to Google-

Stores

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approach to the merchandise mix

High class brand, luxury brand, often sold exclusively in onestore

Deep assortments

Higly attractive for the fashion world (before they were almost

ignored)

,

Due to this transformation, they managed to survive the economic

crisis

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It comes from fashion, but its extendin

It is the best way to test new concepts

Low costs: rental and furnitures

Zero risks

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At the beginning, temporary stores were very essential: rough walls,

, ,

the outside

Low investments

erc an se m x s n en ona y messy, o ncrease s ore rows ng

Merchandise mix is renewed every two weeks

It is a very powerful mean of communication

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Choose a region (yours, Lombardy)

Try to make a

AREA ANALYSIS

SITE EVALUATION

For this new coffee shop. Focus on the IDENTITY OF

THE STORE

940 3 retail 2nd lecture

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