DR RAIHANA MOHD ALI
DR NIK NADZIRAH NIK MOHAMED
PART 1 : CASE STUDY 1
COMPARISON OF THE SAME PRODUCTS BETWEEN TWO RETAILERS
PRODUCTS DIAPERS SHAMPOO
RETAILER ECONSAVE TESCO 99 SPEEDMART MYDIN
VARIETY –How many variations are represented? (How many types…) Pants
Size – Available in all size (but not too much in quantity for every size) Pants
Size -Available in all Size Limited types Many types
ASSORTMENT – How many Brands of this one type? 4 to 5 brands
-OWNBRAND (ECONSAVE) 5-7 brands-most popular brand in Malaysia
-ULTRADRY Limited brands Many type of brands
SERVICE – Any service involved? Samples, convenient packaging etcPackaging as per display -Convenient packaging
-samples Packaging per bottle Packaging per bottle and also per bulk
PRICE Low price for certain brand Standard price but low price given when promotion or sales -standard price
-Some of brand sold in high price More cheaper than normal price
LOCATION (on shelf, in store) On shelf On shelf On shelf On shelf
PROMOTION – Sale, coupuns, samples sometimes -On festive season
-samples given sometimes -On festive season
-always (weekly sales)
DESIGN & DISPLAY – Special display? No Special display for some brand No Special display for some brand
TYPE OF RETAIL INSTITUTION Grocery Stores & Supermarkets Discount Retailer Grocery Stores & Supermarkets Convenience Retailer
RETAILER ECONSAVE TESCO 99 SPEEDMART MYDIN
a) THE TARGET MARKET The target market is for family because the price is affordable The target market is for Familys due to the price offers when on sales -always attract people to buy Walk-in customer because there are only limited to some brand It’s a one-stop centre. Customer can choose many variety and price are more cheaper
b) TO SATISFY THE NEEDS OF TERGET MARKET The product always there (although not much quantity to one brand and packaging) The price is affordable for customer to buy Their target for customer who are really need the thing The bulk price bring profit to small retailer
c) LONG TERM ADVANTAGES OVER THE COMPETITORS Always low in price Promotion -price discount The store is everywhere within neighbourhood area The largest and well-established company in wholesaling and retailing
d) CONCLUSION The strategy for keeping the price always low – work out Good prices and more choice Easy for customer to buy because the store is close to them It’s a one-stop centre. Customer can buy in single or bulk
PART 2 : CASE STUDY 2
COMPARISON OF THE SAME PRODUCT FROM TWO RETAIL WEBSITES
PRODUCTS TO BUY : WOMEN CASUAL SHOES
Women Flat Shoes Spring Rose Embroidery Platform Casual Shoes (White)
A mart Fashion Women Flat Shoes Spring Rose Embroidery Platform Casual Shoes(White)
Material: PU Leather + Rubber Sole
Beautiful rose embroidery
Size: As the picture show
Size (Size Guide)
Before RM 78.20,
You save 71%
COMBO OFFER SAVE RM 3.67 when you purchase these items together for only RM 41.73
Ship to :
Standard: Mon 20 – Thu 30 NovFree
Ships from overseas
Cash on Delivery available
7 days easy return
Change of mind not applicable
No warranty available
Korean Women’s Fashion Classic Rose Embroidery Casual Sneaker
Market Price? RM45.00
Our Price? RM 19.90
Product Code ? WFSJT 22323
Weight : 0.72KG
Stocks Available : Ready Stock
standard delivery (3-6 days)
express delivery (1-3 days)
Black / White
Size : 36 37 38 39 40 41
Estimate shipping fee
1. Unconditionally returns accepted within 30days
2. Unconditionally refund accepted by wrong items
Items must be returned in new or unused condition and contain all original materials included with the shipment.
IDENTIFYING THE RETAILERS
One-Stop Shopping Destination -With hundreds of thousands of products across categories including health and beauty, home and living, fashion, mobiles and tablets, consumer electronics and home appliances among others, Lazada is the place to visit for all your shopping needs.
Easy and Accessible Shopping
Safe and Secure Shopping
Customer Service – For any questions or feedback, just contact Customer Service and they will try their best to respond to our inquiry within 24 hours.
Every TheOneMall.com product undergoes an extensive testing and quality control procedure, ensuring each and every item purchased meets global quality standards. TheOneMall.com offers only the highest quality products, allowing customers to shop with confidence.
Low Prices Direct From Factory Suppliers
Easy ; Safe Online Shopping with a wide variety of payment options, TheOneMall.com offers convenience to customers worldwide
COMPARING EXPERIENCE SHOPPING ON THE INTERNET SHOPPING AND LOCAL STORE
INTERNET SHOPPING LOCAL STORE
Most likely, I need a credit card, PayPal account, checking account, or some sort of online financing option. i’ll have to wait for it to arrive through the mail.
The easiest place to purchase products if I have the money. All I need is a way to get there, and means to take my item home.
ADVANTAGES AND DISADVANTAGES OF INTERNET SHOPPING EXPERIENCE
Every make and model is at your fingertips without having to drive miles to find it. Don’t see your television at this store, surf to another. The only drawback is you can’t test the product beforehand unless you find it at a retail store near you, but you can read product reviews, user opinions, and manufacturer specs with minimal exertion. Most reputable sites make aware the availability of each item
Generally, online sellers features lower prices because they don’t have the overhead of renting a pad in a strip mall, high electric bills, and a staff of sales people.
There’s even Web sites that offer percent off’ discounts if you enter a code after meeting a minimum purchase requirement, which could save even more money. Though, pay attention whether or not your television is brand new or refurbished.
This is a sticky point with online purchasing. While most excel in servicing the customer, there’s also a negative stigma associated with online sellers. Please read user opinions before buying and make a gut-call. At times, consumers are charged restocking fees, have to pay for shipping if sending the item to be fixed through warranty, or buy the item with a ‘no return’ clause in the sale.
Though, with some warranties, the consumer will get a replacement model temporarily or permanently depending on the issue. Customer service is sometimes hard to contact, and there’s usually no storefront to voice a grievance in person.
LAZADA.COM VS THEONEMALL.COM
PRODUCT QUALITY GOOD GOOD
LOW PRICES CHEAPER
SUGGESTIVE SELLING YES – Exclusive Deals and Offers! YES – offers only the highest quality products, allowing customers to shop with confidence
WEBSITE FEATURES WIDE RANGE OF VARIETY, REFINE BY CATEGORY REFINE BY CATEGORY
DESIGN OF WEBSITE IMPRESSIVE, ATTRACTIVE ATTRACTIVE
EASE OF WEBSITE USE YES – USER FRIENDLY, CONVENIENT
Easy to view
YES – Convenient ; Friendly Customer Service
CLOSING THE SALE CUSTOMER CARE
Shipping ; Delivery
Return Policy AFTER SALE – Return ; Replacement
AFTER SEEING BOTH THIS WEBSITE AND COMPARE CORRESPONDINGLY, I PREFER BUYING PRODUCT WITH LAZADA.COM.MY BECAUSE:
IT MUCH EASIER AND MORE CHOICES.
PROVIDES MANY OPTIONS FOR THE SAME ITEMS THAT WE ARE SEARCHING ON.
THE QUALITY ALSO MUCH BETTER AND THE DELIVERY OF PRODUCT FASTER AND EFFICIENT.
Tesco was founded in 1919 by Jack Cohen from a market stall in London’s East End. Over the years the business has grown and now operating in 12 countries around the world, employ over 530,000 people and serve tens of millions of customers every week.
Their physical presence in Malaysia comes through a network of 49 hypermarkets, which are serviced by two state of the art distribution centres in Selangor. Since the launch of the business in 2002, Tesco opened many stores across Peninsular Malaysia.
With the influence of the internet increasing, two thirds of Malaysians have access to the internet. Following the launch of grocery home shopping in 2013, the business grew their grocery home shopping business in its first year of operation in the country. Offering a wide range of 4,000 own brand products- 90% of which are sourced in Malaysia. They include Tesco Value, Choice and Finest, as well as specialist ranges such as a Lighter Choices.
TESCO STATION 18, PASIR PUTEH, IPOH, PERAK
In Tesco, they believe:
The first principle of layout is circulation.
Circulation is created by arranging product so the supermarket can control the traffic flow of the consumer.
Along this path there will be high-draw, high-impulse items that will influence the consumer to purchase which he or she did not intend. Service areas such as rest rooms are placed in allocation which draws the consumer past certain products to create extra buys.
Necessity items such as bread and milk are found at the rear of the store to increase the start of circulation.
Cashiers’ desks are placed in a position to promote circulation.
The entrance will be on the right-hand side because research has shown that consumers who travel in a counter-clockwise direction spend more.
The second principle of layout is coordination.
Coordination is the organised arrangement of product that promotes sales.
Products such as fast-selling and slow-selling lines are placed in strategic positions in aid of the overall sales plan. Managers sometimes place different items in fast-selling places to increase turnover or to promote a new line.
The third principle is consumer convenience.
The layout of a supermarket is designed to create a high degree of convenience to the consumer to make the shopping experience pleasant.
This is done through the character of merchandising and product placement.
There are many different ideas and theories in relation to layout and how product layout can influence the purchases made.
Tesco is also known as one of the most successful retailer for the store layout and visual merchandising.
Avery Tesco store has a good division of regions for each department.
The graph below clearly indicate every department of a Tesco Hypermarket, the left part is for the grocery areas, which include all the frozen food, bakery and dairy food; the middle part is for the apparel and housing products, also includes pharmacy, toys and electronics; the right side of the store has garden products.
The service layout creates an open shopping environment that helps customers find what they are looking for quickly
Tesco management department will take care of the placement of every product in order to benefit both the customers and stores sales.
As an example, in the Tesco stores, you will find out that some of the high seller products such as milk and eggs are placed at the end of the container, but at the same time it is visible to the customer as they walk in. Therefore the customer has to pass many low-sales products in order to get these best sellers.
Tesco keeps using this strategy to balance the sales of different goods, which helps to organize the supply chain. And that would be the best element they can adopt to enhance consumers5 purchasing behaviour as well as to boost the sales of the store based on how do they design the layout of the retail’s interior design
Managing space is the first and foremost concern of almost every retailer, when it comes to designing the store%s interior. Space is always an expensive and scarce resource. Retailers always try to maximize the return on sales per square foot. Planning a layout for the stores interior is the first step in designing the store’s interior.
A good retail store layout allows for sufficient walking space for customers.
The aisles must be wide enough to accommodate traffic flowing in both directions.
If the store provides shopping carts, then there must also be space for customers to stop near a product display and park a cart without disrupting the flow of traffic.
The ability of customers to easily navigateyour aisles is important in retail layout design.
The layout of your retail store should allow customers to enter from the front and beencouraged to walk to the back of the store.
This increases the amount of time that the customers spend in the store and boosts the chances that they will buy more products.
Spread the better selling items out among the shelves to encourage customers to browse the entirestore to find what they want.
The layout of aisles should be a horseshoe design that brings customers through the front door with impulse products and some high demand items, works customers to the back of the store with higher priced items and then allows them to exit through aisles of more impulse items at the cash register locations.
Putting products at the proper eye level will help to improve sales. But it is important to remember whose eye level you are trying to reach.
If you are trying to sell a tennis racket to adults, then put the tennis racket at adult eye level.
A toy you are trying to sell to children needs to be at a child’s eye level.
Display cases serve several important functions in the layout of a retail store. Expensive product can be put in a lighted display case to draw attention to it.
The display case also acts as a counter top customer interaction area for convenience. For example, if someone sees awatch he likes in a lighted display case, then the sales associate can quickly pull the watch out to show the customer.
Another function of display cases is that they can be placed near the cash register area and act as another impulse buy area for customers. You can increase the effectiveness of a display case at the cash out area by putting a sales associate there to engage customers and answer questions.
OBJECTIVES OF THE STORE ENVIRONMENT
Get customers into the store
Serves a critical role in the store selection process
Important criteria include cleanliness, labeled prices, accurate and pleasant checkout clerks, and well stocked shelves
The store itself makes the most significant and last impression
Once they are inside the store, convert them into customers buying merchandise. The more merchandise customers are exposed to that is presented in an orderly manner, the more they tend to buy.
Retailers focusing more attention on in store marketing by emphasize in the store, in the form of store design, merchandise presentation, visual displays, and in store promotions, should lead to greater sales and profits. ( It is easier to get a consumer in the store to buy more merchandise than planned to get a new consumer to come into the store)
Store layout and visual merchandising are factors that contribute to the uniqueness of a store. The exterior and interior of a store convey several messages about the store to the consumers.
The building that houses retail store and the exterior design of the store are important aspects of the design of the store. Marquees, walkways, entrances, doors, display windows, the height and size of the building, colours and materials used, and theft prevention are some of the key factors to be kept in mind while developing a store.
There are three kinds of layouts – grid layout, race track layout and freeform layout.
Allocating space to various merchandise categories in a store is very important. Allocation of space can be based on many factors, like historical sales, gross margins, industry averages and strategic objectives.
Apart from allocating space to various merchandise categories, space has to be allocated for carrying out some essential functions.
Such space includes the back room for receiving the inventories and sorting them out, office and other functional spaces, aisles and customer service desks, floor space and wall space.
The interior of a store influences the purchasing behaviour of the customers to a great extent.
Designing the interior of a store in such a way as to influence customer behaviour is referred to as visual merchandising. It includes optimum and appropriate use of fixtures, displays, colour, lighting, music, scent, ceilings and floor, and designing all of these properly.
Merchandise presentation is the most significant aspect of store design, because it helps attract customers’ attention. !retailer can resort to many forms of presentation such as idea oriented presentation, item-oriented presentation, price lining, colour presentation, vertical merchandising, tonnage merchandising and frontal presentation.
Prevention of losses due to merchandise pilferage is a major cause of concern for all retailers. This issue should be addressed at the initial stage of store design. The retailer can use many electronic security systems like CCTV (for the prevention of such losses).
Thus, by appropriately integrating the various elements of store design, a retailer can create an excellent image of itself in the target customer’s mind.
Dawson, S., P.H. Bloch, and N.M. Ridgway (1990), “Shopping Motives, Emotional States, and Retail Outcomes, Journal of Retailing
Robert F. Lusch, Patrick M.Dunne, James R. Carver – Introduction to Retailing (7th Edition) – Chapter 13 Page 474-512