Lesson 5 slides
- 1. INSIGHTFUL OBSERVATIONS “If I have ever made any valuable discoveries, it has been owing more to patient attention, than any other talent” –Sir Isaac Newton
- 2. Scope of Observations Objective: To observe the many aspects within local stores, attempting to identify key indicators in which will provide insight into the company itself. Seeking Insight related to: Market Strategies CompanyValues & Goals
- 3. Company Mission Statement "Costco's mission is to continually provide our members with quality goods and services at the lowest possible prices, achieve our mission we will conduct our business with the following Code of Ethics in mind: • Obey the law • Take care of our members • Take care of our employees • Respect our vendors If we do these four things throughout our organization, then we will realize our ultimate goal, which is to reward our shareholders."
- 4. Observations: ■ Exclusivity: Paid Membership ■ Pricing Strategies ■ Ample number of Sample tables throughout food isles Analysis: ■ Increase brand image & value through exclusivity, “members” influenced to feel special ■ Bulk Items manipulate a consumer’s perception of product true value relating to size ■ Samples – Increase impulse buying, increase sales of new products and/or products lacking in sufficient sales
- 5. Company Mission Statement “We’re also committed to having the lowest prices on wine, spirits and beer every day. Our tremendous buying power and special relationships with producers, importers and wholesalers bring us considerable savings, which we pass on to our customers”
- 6. Observation ■ Store Organization ■ Choice of Interior colors/ deco ■ Offer Free Wine classes to registered members ■ Offers mini “travel-size” liquor bottles Analysis ■ Market Segmentation:Wine, Beer, Liquor in designated sections, easy to find and well labelled, increasing chances of purchase ■ Music/ temperature/ deco/organization gives warm comfortable feeling, customers tend to linger longer and purchase more ■ Meets real demand by offering different related product types catered to large variety of customer tastes ■ Wine Classes increase sales of higher priced product selections ■ Impulse buy options present near cash registers, priced accordingly
- 7. CompanyVision “It's our belief that great design is fun, energetic, surprising and smart—and it should be accessible and affordable for everyone. When we talk about our dedication to good design, we don’t just mean how something looks, but also how it satisfies a need, how it simplifies your life, and how it makes you feel”
- 8. Observation ■ Brand Recognition ■ Convenience/ Ease of Shopping Experience ■ Self Check Out Dominance ■ Online order pickup area Analysis ■ Through years of successful operation, the target logo resonates as a familiar and trustworthy company among majority of consumers ■ Store offers large enough range of products to be considered an “all-in- one” shopping destination ■ Self-Check out reduces overhead by embracing technological advances ■ Integrating the Return counter with online order pickups,Target has broadened the range of purchasing option, increasing revenue generation
- 9. Company Mission Statement “We’re on a quest to bring the fun of beauty to all —constantly delighting our guests with all things beauty all in one place, while offering rewarding careers for our passionate, beauty-loving associates”
- 10. Observations ■ Store Organization by brand ■ Sampling of products prior to purchase ■ Salon located inside of store ■ Highlighted Products ■ Small Products located near Check- Out Registers Analysis ■ Entice users by presenting pricier brands in the front center of the store ■ Younger/ Women ■ Sample, feel obligated to buy ■ Increase frequency customers enter store, increase sales each visit, located in back of store forcing customers to walk by products when entering and leaving ■ New and unique products placed near door and entrance windows, ensuring maximum customer exposure ■ Product placement near registers promotes impulse buying, increases average dollar amount of sales per customer per visit
- 11. Company CoreValues: ■ "Unleash the Power of Our People” ■ “Learn from Challenge and Change” ■ “Show Respect, Humility, and Integrity” ■ “Have FunWhile Being the Best"
- 12. Observations ■ Color Scheme of Company ■ Cash Register Placement ■ Security Analysis ■ Color Scheme of Blue &Yellow – Vibrant in which the contrast catches the attention of passerby's. Exterior appearance that commands attention. ■ Cash Register Set-up limits chances of shoplifting, channels customers by specifically chosen small products, enticing customers to impulse buy ■ Many Items locked up, reducing chances of theft on pricier products
- 13. Company Mission Statement: “We foster a work environment through collaboration and partnerships that increase employee engagement, strengthen our business relationships, encourage innovation, influence multicultural markets and makeCold Stone the Ultimate Ice Cream Experience® for everybody!”
- 14. Observation Analysis ■ Store placement in strip mall near other less healthy yet complimenting food choices ■ Colorful Menu appeals to customer’s senses ■ Samples entice customers and may spur in the moment size upgrades ■ 100% customer purchase rate, a customer walking into the store signifies guaranteed purchase Location OutsideAdvertising Colorful & Delicious Menu Props Samples Readily Offered Lack of “Window Shoppers”
- 15. CONCLUSION References: o Shane, S. (2005) Finding Fertile Ground: Identifying Extraordinary Opportunities for NewVentures. New Jersey. Pearson Education, Inc. o Wulfen, G.V. (2013) The Innovation Expedition: AVisualToolkitTo Start Innovation. Amsterdam. BIS Publishers. Companies utilize an array of strategies and tactics to increase the likelihood of a sale, assuring continued revenue generation, increased market share, and customer loyalty