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What is strategy
The lost meaning of strategy
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4. PART 1
To conduct research and analyze the Effectiveness of the promotional tools and techniques & physical surroundings (situational factors) used at Future Lifestyle Fashion Limited (In-Store) to influence buying behavior.
4.1 PROBLEM STATEMENT
There are various Promotional tools available in-order to increase sale as-well as to clear stock on regular basis in order to replenish the store with new arrivals.
The choice of tools have to be appropriate considering the demographic aspects of the prospects and their attitude towards each promotional tools offered at the store level.
It is often an issue to identify the right tool to be utilized for diversified demographic population as the tastes and preferences of the consumers vary rapidly
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These groups are family oriented and hence consider various personal factors before making a purchase decision. On the other hand a youngsters prefer more price discounts and BOGOF's as they believe in saving money for various other expenditure. The reason being that they are supported by …show more content…
Advertisements can be done in such a way that it predefines the segments on which they are being targeted, just to get a better clarity and reduce ambiguity in the minds on the customers. Hence wide segregation of appropriate products according to age groups and preferences can be arranged in order to witness the turnaround in sales of the store, thereby appealing to the targets.
RESPONSES OF THE SELECTED VARIABLES AMONG RESPONDENTS BY FREQUENCY AND PERCENTAGE (ANNEXURE)
Figure:7
No. Statements SD D A SA N (%) N (%) N (%) N (%) Price Discounts
1. If a brand offers price discount, that could be a reason for me to buy it. 0 3
(2.0) 78 (52.0) 69
(46.0)
2. When I buy a brand that offers price discount, I feel I am getting a good buy. 0 3 (2.0) 72
(48.0) 75
(50.0)
3. A price discount has allowed me to buy another brand which I do not regularly buy. 0
Most retailers know that the appearance of their stores plays a big part in determining consumer behavior. As such, they seek to use it to their advantage. Sport Chek sells various types of sports merchandise mainly to middle and upper class citizens of Canada. The company has many stores and online portals. The design of the stores communicates to customers that goods in the store are of high quality. Therefore, customers come with the expectation to pay a premium. The main elements that the store uses to influence consumer behavior include the choice of construction materials, careful choice of colors and shapes, and creative use of lighting. These elements have an impact on the affective, cognitive, and behavioral responses of potential customers. The channel strategy used by the company is effective because of Sport Chek’s strong brand name. The company can benefit more from a better channel strategy for its online shopping portal that can help it to take advantage of the global high-end sports market.
Kohl’s also boasts a loyal customer base and strong brand equity. These strengths are critical to offset their weaknesses. Flaws include an imbalance on sales for men’s products and a lacking online presence. (Kohl's Corporation, n.d.) Another way that Kohl’s is actively counterbalancing their negatives is by capitalizing on opportunities. Kohl’s has found that their beauty sections are an immense source of opportunity. As a result, the company is expanding those departments in an effort to capture those sales that would otherwise go elsewhere. (Wahba, 2014) Finally, Kohl’s keeps the knowledge of their threats at the forefront of their decision-making. They understand that their coupon system can be abused and cause profit losses. They also recognize that price wars in their industry can also be very damaging. As a result, they are working towards more secure methods of offering savings and strategically making efforts to remain the leader for price setting. (Wahba,
Ulta’s low-pressure sales strategy seems to be working and they should continue this strategy. Customer loyalty is very important as it provides long-lasting relationships with your customers. It is less expensive to retain existing customers than advertising to new ones. With this in mind offering special offers for these loyal customers can strengthen the bond between Ulta and their customers.
Once the target market has been identified it is important to develop a marketing strategy. In today's fast paced, information overloaded society; conveying a message about a product seems to be more difficult than ever. The consumer is bombarded with advertising everywhere they look. Today advertising not only exists on television, radio, magazines, and newspapers, it can be found on billboards, park benches, in our mailboxes, on buses, taxis, at sporting events, and on clothing.
The companies that have explored this target market have had to figure out what approaches or appeals should be used and what strategies should be used in creating long-term relationships with this target group.
Current trade deal promotions are destroying our margins, retailers take advantage of these promotions because is profitable for them. For example, every year during the 6 week “back to school season”, if we launch a trade promotion for two weeks, retailers will buy inventory that covers all 6 weeks of the seasons, and they will extend the discounts to the client to increase their volume but eroding our brand equity, they will get a 5% increase in their margin and we’ll get a 15% reduction (Exhibit A, trade promotion). In a “best case” scenario, the retailer and the client are benefitted, but more often than not, only they retailer gets the benefit as they don’t pass the savings to the consumer.
Delivering the requested number of products successfully matching different market segments, consumers, and their expectations in terms of price, age, reliability and ideal positioning on market perceptual map (graph above).
When a consumer needs an object there are many places they could turn to, if they are not in immediate need of the item they may choose to order it off of a online store, if price isn’t an issue they may turn to high-end retailers. But if they need an item which has both the quality they want, does not break the bank, and they have access to it immediately many customers may turn to discount stores. Discount stores include the likes of: Target, Walmart, and Dollar General among many others. These discount stores typically sell products which are of quality value and prices that their typical customers could afford. Discount stores are increasingly common to find, they have spread like wildfire reaching
Thirdly, the company is committed to delivering superior quality of products and services. It earned a reputation of a convenient and reliable brand that offers the lowest prices, one of the fastest and lowest shipping, widest selection of goods, and many additional features with its services.
When comparing prices, consumers can find the exact same style Nike boot in Adidas and pay a lower price. Essentially what the consumer is paying extra for is the Nike brand. Looking back at my journal you can see I wore the Adidas boots one time, then went out and bought Nike boots. “Brand loyalty is based on an emotional connection toward the brand and a conscious commitment to find this brand each time the consumer purchases from this category.” 112 Brand Promotion I could have worn the Adidas boots for free but I spent the time and money to go purchase the Nike brand. “brand loyalty and advertising work together to create another important economic effect related to pricing flexibility and profits. When consumers are brand loyal, they are generally less sensitive to price increases for the brand.” 45 Advertising and Integrated Brand Promotion Being able to raise prices but still keep the consumer market is very valuable. This is one of the main reasons brands strive to have brand loyal
It is really interesting how David Pakman says, "the big guys are overcharging you, while smaller companies like ours (Dollar Shave Club) can give you the best products in the world for a fraction of the price." Price is what the customer are willing to pay, and it is the biggest indicator of quality. We immediately think that higher price is better and has good quality. When in reality it sometimes doesn't. For instance, a person tastes two of the same wines, but with different costs, one cost $10 and the other cost $40. The brain immediately distinguishes the wine as cheap (with no quality) vs expensive (with quality). When in fact they are made the same. However, it all depends on the person. Some people only buy things that are branded
they have a great selection of products and discounts to choose from. If you like saving money this is a great way to do it.
In a simple way, the retailer needs to create a warm, friendly and an approachable retail space to attract consumers.The visual displays is an imperative element of branding of any store. If the stock is presentable, it is bound to appeal to the shoppers. If the shoppers appreciate the store layout and product, they are likely to spend more time in the store, and in return reward the store with sales. Along with the products for sales, the staff, the décor, the store interiors, the trial rooms arrangement, the lightings and music also form an inclusive elements boosting store sales. (fibre2fashion, 2008)
3. Distribution in the number of men and women who visit the retail outlets and appropriate decisions can be made keeping these numbers in mind.
To begin with, I shall look at what fashion is; it is a currently popular style or practice involving clothing, footwear or accessories. It mostly refers to the current trends in looks and dressing style of a person (Cumming 234). In most cases, fashion is confusedly related to costumes; when a person talks of fashion they are seen to mean fashion in terms of textile. Fashion is seen to originate from the Western world and it is copied by other places. In this paper, we shall look at how fashion affects lifestyles and the group of people who are affected most. The paper further investigates how media is used to transmit fashion from one region to the other. Although it has been seen to affect people’s lives many people have different perspectives on fashion and dressing.