The ‘Ban Boredom’ strategy that was implemented by Store24 attempted to achieve differentiation in terms of customer experience by providing a creative, fun & entraining atmosphere to the customers. The ultimate aim of the company executives was to increase store revenue by enhancing customer loyalty & to increase sales of high margin products by implementing a differentiation strategy. The critical success factors for this strategy as mentioned in the case are manger & crew creativity, skilled staff, ability to handle day to day operations effectively and knowledge of customer preferences. Learning from Exhibit 3, Store24 employed balanced score card included all four essentials perspective measures: Financial (EBIDTA , Sales, margin, contribution), …show more content…
I would include the below mentioned variables while implementing the Ban Boredom strategy to increase the benefit sought by Store24. Considering the learning & growth perspective, factors such as developing a culture to accept the change by implementing surveys to record employee satisfaction (on a 5 point scale) & engagement of employees, as the ability to implement successful strategies highly depends on the employees abilities to accept the change. Retaining good employees based on measures such as, how many of the skilled force actually stay with company & what is the tenure for which the employees are associated with Store 24 are essential to gain a comprehensive view of the business strategy. Secondly, from the Internal perspective, examining value enhancement by implementing mystery shoppers audits/checks & differentiation measured by and profits generated by the sale of new concepts. Majorly, from the Customer perspective, in order to materialize the effectiveness of the differentiation strategy, examining the shopping experience (based on factors such as
Lowe’s grew through strategic choice by heavily focusing on key functional areas involving research and development (R&D), marketing, and logistics. Lowe’s important R&D investments included the creation of two prototype stores. The first prototype with 147,000 square feet catered to large markets and the other with 120,000 square feet catered to smaller markets (Rouse, 2005). Lowe’s used these store prototypes to help guide their continued growth and store placement. The prototypes also aided the company in designing future stores more efficiently with respect to energy and sustainability (Lowe’s Companies, Inc., n.d.). Furthermore, Lowe’s marketing strategy concentrated on attracting new customers and enhancing current customer satisfaction. To bring new customers to the store, Lowe’s engaged in a pull marketing strategy (Wheelen & Hunger, 2012). The com...
Levy, Michael, Barton A. Weitz, and Dhruv Grewal. Retailing Management. ed. New York, NY: McGraw-Hill Education, 2014. Print.
They first want to know, within the market for the potential location, who are their direct rivals? The demographic information they have collected will help in determining this. They’ll also want to determine the size of these rivals, and what their performance is within the market. Assessing popularity, as well as strengths and weaknesses of direct competitors will be helpful in determining how Eddie Bauer’s performance could match up against their competition, as well as how they might gain competitive advantage. Not only will the new store’s performance be affected by its surrounding competitors, but taking a look at competitor performance can help them to determine the popularity of these types of products within that market. (Aaker, Day, Kumar, & Leone,
maintaining a positive brand image. This store was already successful at a strong long-term location
In this case analysis, the relationship between different drivers of profit for Store 24 are examined and its implications on retention. In the first part, employee tenure, and several site location factors will be examined relative to the goal of profitability. After that, several recommendations will be done to the management of Store 24 regarding the employee retention program. Next to this, a possible relation is examined between managerial skill, service quality, and profit. Hereafter, data analyses are applied to test hypothesis regarding these variables.
N.D.) There are three things to know and do in order to capitalize on this, first know what motivates the customers from their behavior as well as their buying decisions. Second, is to uncover the true reasons the customers decided to buy your product or service instead of that of your competitors. Finally, put yourself in the customer shoes and ask yourself this question; what would make them come back to your store again? The answer to these could be the quality of the products and services offered, the friendliness of the employees, the customer service, the cleanliness of the store, and accessibility of the products (Staff, E.
Paco Underhill has created a way for stores to draw more customers in and spend more money by getting in the mind of the customers. I found some of Underhill’s theories to be true. Underhill’s theories have helped provide research of the actions of consumers inside of American Eagle, Meijer and Hollister, these theories include, the need for shoppers to acclimate to their surroundings, the way customers turn into stores, and by placing most used products in the farthest places away from the
Chapter 13: Strategic Managers 19. Literature list 20. Enclosure Introduction. During the lesson we had the opportunity to read quickly through some of the cases. The reason why we have chosen the Home Depot case is first of all that th... ...
Some core competencies that must be exploited are: Brand Kmart is an existing well-known and trusted national brand in USA Kmart has private label and designer clothing that is well endorsed Infrastructure Kmart has a large number of well-located, low-cost, leased stores in urban far away from competitors through out the country ( Appendix B ). Staffing Confidence by the market in Kmart is created by the achievements of its staff and management. With the turn-around strategy in place, new blood has been put into the top management structures. In any renewal there will be retrenchment as unprofitable stores are closed. This can be used as an opportunity to retain and move high performing staff to where they are needed and to get rid of non-performing staff. Anderson the chairperson of Kmart is well supported by Wall Street and the board of Directors. These new staff members enter the company with needed skills to address problems in certain areas that previously were poorly managed such as inventory control and merchandising. Store locations, layout and Performance Stores conveniently located away from competitors like Wal-mart and Target therefore less to compete for customers face-to-face. There are 250 non-performing stores who have already been identified as being more cost effective to close than continue with running costs. Expertise exists in-house for the planning of store layout and appearance to meet different customer segments. This concentration of effort will enable focus on key areas Technology Kmart has already invested in good retailing systems. The system can be use to control inventory, supplier payments, track customer buying and monitor income versus profit margins across all stores. Research and Development The planning department is well established and in cross-functional to provide various perspective. The planning department to ensure that strategies at all levels are executed can further use the access to past data and knowledge of changes in buying patterns. Financial Backing JP Morgan Chase has agreed to support Kmart to avert the current threat of closure due to bankruptcy.
This is a point that rings very true. Store development is important, but there are other key features that need to be considered for continued growth
Management experience will also play a large role in the success of the forecast. The current team is quite new and will gain some needed experience over the next year in the hopes of staying on track for success. The ability of management to ensure product is readily available for the client, their training techniques with new and seasoned associates, and general management style will ensure success or spell defeat for the store.
The main goal when defining the financial perspective was to answer the following question “If we succeed, how will we look to our stakeholders” (BSI 2009, ¶5). Scents & Things is a new business in the area and will need to look closely at the competition in order to increase the company’s market share. The company may have to initiate a way to find a competitor since the original location is in the heart of a small town. Additional areas the company needs to look at is customer satisfaction, asset utilization, Increase net revenues, Minimizing store production costs, Decrease in unit cost, Increase operating cash flow over prior year , And ultimately to achieve financial sustainability. The way to measure the above objectives is to monitor revenue growth, Operating costs, Earnings per share, Return on capital, Return on interest, and number of returned items in a way that will help management to direct the c...
It is a common notion that only the sales person helps in improving sales. It is interesting to note that every individual in your organization contributes to the brand value of your business, hence intoxicate your employees, especially those who interact directly with the customer that they are the ambassadors of yo...
I am interested in this course as I have a real passion for modern studies in school. I am currently studying modern studies at higher level and have previously passed it at national five level. I thoroughly enjoyed the crime and law topic especially and wish to continue this further. The world in which we live in is inevitably changing due to the diverse change in politics, economical and legal opinion. I really enjoy learning about crime and law within the UK and beyond.
The main topic for this Extended Essay is to analyze the effectiveness of company’s market strategy. A marketing strategy can be defined as a process that helps a business to optimize the opportunities in order to complete business objectives, which mainly gain profits. It includes all basic and long-term field activities of marketing that deal with the analyzing of initial strategy, evaluation of the strategy, and making of a new strategy if the initial strategy is found to be ineffective or even might cause loss. (Homburg, Kuester and Krohmer 2009) To make sure the effectiveness of marketing strategy, its crucial to establish the right marketing mix which cover all the element needed in marketing a product. (Clark, et al. 2009)