Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Walmart's competitive environment
Importance of the retail industry to the world economy
Walmarts competitive advantage
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Walmart's competitive environment
CONTENTS
1. Introduction
2. Main body
2.1 Basic information about Bicester Village and Value Retail
2.2 Motivation
2.3 Consumer Decision Making
2.4 Culture
3. Conclusions/ Recommandations
4. References
1. Introduction
An outlet store is a retail channel which allows the manufacturers to sell stocks directly to consumers (Wikipedia,2013). Although people may hold the misperception that products in outlet stores do not have the same quality as good as those sold in the department store, a research conducted by Fowler and Clodfelter (2001) indicates that besides the prices, there are hardly any differences between products sold in the two channels.
With the principle of “Retailers Working for Retailers”,Value Retail, which was founded in 1992,serves authentic high-end luxuries and chic brands to promote their sales via outlet channel(Value Retail website,2013).Meanwhile, they are specialized in providing extraordinary services to customers from all around the world who are traveling in Europe.
This report, which is from the consumer perspective, will analyze how successful the Value Retail is from three aspects: motivation, consumer decision making as well as culture. Motivation and consumer decision making are individual factors while culture is a social cultural factor(Tao,2013).
Most of the researches were conducting using Bicester Village as the example, especially concentrating on the UK market. And some supporting facts are based on the observation during the trip to Bicester Village on 16th November, 2013.
2. Main body
2.1 Basic information about Bicester Village and Value Retail
According to Women’s Wear Daily(2013),Value Retail is currently opera...
... middle of paper ...
...prices.html [Accessed: 3 Dec 2013].
Markham.M,(2013).Value Retail.25th November,Michael Sadler RBLT,University of Leeds
Palmieri, J. 2013. WWD CEO Summit:Scott Malkin. Women's Wear Daily, 10 JANU-ARY,2013.
Schiffman, L. and Kanuk, L. 2007. Consumer behavior. New Delhi: Prentice-Hall of India.
Solomon, M. 2009. Consumer behaviour. Harlow [etc.]: FT Prentice Hall.
Tourists fuel jump in Value Retail sales. 2012. Financial Times, January 16 2012.
Valueretail.com. 2013. VALUE RETAIL - Brand Partners. [online] Available at: http://www.valueretail.com/who-we-are/the-value-retail-way/brand-partners [Accessed: 1 Dec 2013].
Whyatt, G. (2008). Which factory outlet centre? The UK consumer's selection criteria. Journal of Retailing and Consumer Services.
Wikipedia. 2013. Outlet store. [online] Available at: http://en.wikipedia.org/wiki/Outlet_store [Accessed: 8 Dec 2013].
1) For a channel to succeed four location decision factors are considered; economic conditions, competition, the strategic fit, and the cost of operations. Stores need ...
According to Government of South Australia (2014), the right location is influenced to the successful business in particular retail businesses, but the wrong location determination is tough for the business growth. In 2015, Masters has 56 stores around Australia (Woolworths, 2015), and most of them were set up nearby its competitor who is Bunnings that make more difficult in the market competition. For example, there are 6 Masters stores in Brisbane; Everton Park, Tingalpa, Parkinson, Richlands, Bundamda and Springfield areas, and there are Bunnings store in the same areas where are not far away from Masters stores. Furthermore, the wrong location decision is affected to the demographic problem which is the target customers. Masters sets up its stores in the second rate areas which are the growth-belt suburbs, and consumers who live in the areas do not have the spending power that influence to the company
Nordstrom’s retail positioning strategy provides it with the competitive edge it needs to differentiate it from competitors who also serve similar markets.
Target is also taking advantage of a new retail format with a different mix of its growth opportunity in the same market segment offering new Target Express store and internet channels. Keep the brand promise and matching prices with Amazon, Wal-Mart, and Best Buy (Zacks, 2013).
Another item to consider between the two stores is the quality of the products being offered.
In a high competitive world market and with the increasing rational buyers a company can only win by creating and delivering the best customer value than the others competitors do. To succeed, a company needs to use the concepts of value chain.
My company of choice for this report is Macy 's. 'The Magic of Macy 's ', as the company advertises it, has inspired me to shop there, take advantage of their incomparable discounts and great online shopping experience. Macy 's, Inc. is one of the largest department store chains in the United States of America. Macy 's manages stores under the Macy 's and Bloomingdale 's brands. I enjoy shopping at both of the company 's store brands, Macy 's and Bloomingdales. Bloomingdales provides a more personalized experience
Under Arnault, the company was the world’s leading luxury product group. Arnault believed that LVMH control of retail chains was critical to luxury brand success. The finer points of retailing were believed to be, influencing of the overall image of luxury products, as much as the product attributes.
Soman,D & Marand, S (2009). Managing Customer Value: One Stage at a Time.: World Scientific Publishing. p9-14.
Goodwill’s value proposition is “used merchandise at deeply discounted prices.” (Pearson, 2013) It is the same for all customer groups because the clothes and merchandises are being donated to Goodwill and are sold international. Goodwill has retail stores all over the nation and the items online are auctioned through eBay and Amazon fo...
Place (channels of distribution), refers to the point of sale (POS). The method of which a product is assessable to the consumer is a crucial part in the distribution of goods. Retailers pay top dollar for prime real-estate, one of the most popular saying in business is “location, location, location”. Location is key in the retail market and Victoria’s Secret understands that very well, they offer a number of outlets for consumers to reach their products; they have a number of physical store locations both inside and outside of the mall and centrally located to consumers, including overseas and in a number of countries throughout the world, offer online shopping for the millennial and convenience shopping as well as via catalogue (mail order). There is great utilization in all outlets for distribution of the product line; Victoria’s Secret ensures high engagement of its consumers in all outlets by offering special sales and promotions significant to the specific outlet. By doing this they appeal to each market
However, when looking to create a luxury brand, one must go beyond what is required of an ordinary brand, to create something of high value and therefore high prices. So instead of just having brand values, it should have brand beliefs, as this will create a stronger emotional connection with its customers. It should aim to go beyond having a logo, but rather a set of distinguishable icons and the brand’s points of sale needs to be somewhere that connects with its customers and becomes something of a pantheon among other retail outlets. Similarly the customer segmentation should have role reversal, so the customers want to buy their products. Luxury brands should instead of actively promoting their advantages over their competitors, never push the customers into buying their products, thereby offering mystique and letting the customers make the value creation. Lastly, a true luxury brand not only offers products but rather a way of life, allowing them to branch out over several product categories, into every aspect of their customer’s
(Sorensen 2015). As the luxury market for goods becomes more increasingly competitive. The original luxury brand owners struggle to find ways for their products to stand out amongst all the ‘knock-off’ versions. The companies introduced the concept that shopping is an experience and that the if their products are luxury so should their
In an article called Cultural Factor Highly Influences On Consumers & Their Buying Behavior – In Indian Context, the basic characteristics of culture are described:
I understand the term customer value to define how customers weigh the benefits of individual purchasing decision against the costs of these products.