940 3 Retail 2nd Lecture
Transcript of 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
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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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38
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
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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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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
,
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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)
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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