retail mix and market segment reserch on Odyssey
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retail mix and market segment reserch on Odyssey

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A research submitted by Retail Management student of Pamantasan ng Lungsod ng Marikina. ...

A research submitted by Retail Management student of Pamantasan ng Lungsod ng Marikina.

This will served as reference to future retail marketing student of Pamantasan ng Lungsod ng Marikina.

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    retail mix and market segment reserch on Odyssey retail mix and market segment reserch on Odyssey Presentation Transcript

    • @
    • INTRODUCTION
      • Home odyssey Records is the country’s largest, most innovative, most geographically dispersed and comprehensive retailer of CD’s, tapes, videos and audio/video accessories.
      • TRADE NAME: Music Exchange Incorporated
      • FRANCHISED: Single unit franchise
      • CATEGORY: Retail store
      • OBJECTIVE OF THE STUDY
      • To identify the outlet’s market segmentation, retail format and the strategy in satisfying their customers and to catch potential customers.
      • To learn how to understand consumer’s buying decision, how to segmentize a market and its importance in the business.
    • HISTORY OF THE COMPANY
      • The fist store of Odyssey Records was opened in 1977 in Greenhills Shopping Center.
      • First or pioneer record store which introduced rack-jabbing as a store feature started in early part of its operations.
      • From just one store in 1977, Odyssey has grown to more than 60 stores nationwide including 6 XL stores that offer customers the widest selection of music products housed in an exciting, forward looking store concept.
      • Odyssey branches are located in major cities nationwide including 3 stores in Cebu, in Bacolod and Iloilo, 2 in Davao city and 1 in Cagayan De Oro and more in key cities in Luzon and Metro Manila including their outlets in mall .
      • Their outlet in Robinson Metro East was opened in year 2001 when the mall also opened.
      • VISION: To serve the market: Filipino music lovers of all ages through establishing more milestones and more trailblazing efforts in the years to come.
      • MISSION: To be customer-oriented, innovative and to be operational excellent.
    • RETAIL FORMAT
      • Odyssey is a specialty store of music and home videos. They also sell accessories for audio/ video.
      • RETAIL MIX
      • Merchandise assortment – Odyssey provide limited and one product line but deep in assortment. Their products are CD’s tapes, videos, audio and video accessories. product assortment is very deep because they have lot of categories like Rated A, R, X and General Patronage for movies. Classic, love songs, R & B, band songs/rock and other songs by different songs. They also offer religious songs and for health conscious.
      • Customer Service - Provide good customer service because salespeople in the store is always assisting their valued customer with a happy service. They provide trials and also give warranty. The company also entertains reservations of item.
      • Store Design – The outlet has sections/ category for different assortment of merchandise. They provide clear sign ages for each category of cd/vcd (either music or video).
      • Location - Odyssey outlet is low in location. Because first, their outlet is small and second, their competitor ASTROVISION is located in front of their outlet with attractive store design and wider than their store.
      • Price – Odyssey offers average price because of being affordable in terms of music and video products and accessories.
      • Advertising and Promotions – Odyssey has no advertisements which recognized by the people but they have sales promotions like midnight sale, buy one take one, and discounts which only occurs seasonally.
    • ADDITIONAL INFORMATION
      • OUTLET’S COMPETITION
      • The competitor of Odyssey is the Astro Vision, and they are both having outlets in Robinsons Metro East. And based on the retail mix, Astro Vision is better then Odyssey in terms of location and wide area because they could capture more customers if we based on their store design and location. But even if Odyssey has lower rate in retail mix, they still operating because, since Robinsons Metro East started, their outlet is there. It means that they are the first music store establish in the location than its competitor.
      • COMPANY’S NEW FEATURE
      • Odyssey has new feature of store ; the Odyssey XL Odyssey XL provides lot of extras: extra space, extra stuff and extra large. The XL stores have DJ booths from where Odyssey DJ’s do love mixing and playing of music hits. There are separate classical and jazz rooms with piped in music and video displays. There are state of the art Vidiwalls and Giant Video screens playing the latest videos. There is also space for mini in store concerts. But Odyssey outlet in Robinsons Metro East has not yet applied this new feature could which build sustainable competitive advantage over Astro Vision.
    • MARKET SEGMENT
      • BY TERRITORY : Robinsons Metro East is located at Dela Paz Marcos Highway, Pasig City. It is strategically launched along Marcos Highway corner Imelda, crossroads to the major population centers of the following:
      The primary markets are the areas near the mall and the secondary market is far from malls but engage in their market radius. We estimated that Cainta has the highest percentage of market or possible customer because it is near in Robinson and their only competitor in that place is the Sta. Lucia. Even though, Robinson is place at Pasig City, we rank the area in second place because Pasig City is a very large area with several malls, so it means that they have a lot of competitor. The third one in the primary market is the Marikina because it is also near the Robinson compare from the secondary market. 100% TOTAL 5% 115, 167 MONTALBAN 5% 135, 603 SAN MATEO 10% 470,866 ANTIPOLO SECONDARY MARKET 20% 479,394 MARIKINA 25% 505,058 PASIG 35% 242, 511 CAINTA PRIMARY MARKET ESTIMATED MARKET/ CUSTOMER (%) TOTAL POPULATION AREAS
    • BASES FOR MARKET SEGMENT
      • DEMOGRAPHIC
      • MARIKINA
      PASIG 65,72.55 43,817 15% OLDIES(40 – 50 YEARS OLD) 44,191 176,764 25% ADULT (20 – 40 YEARS OLD) 26,077 52,154 50% YOUTH (13 – 19 YEARS OLD) 10,316.6 103,166 10% KIDS (5–12 YEARS OLD) TARGET MARKET TOTAL POPULATION PERCENTAGE AGE 8,199.3 54,662 15% OLDIES(40 – 50 YEARS OLD) 47,459.5 189,838 25% ADULT (20 – 40 YEARS OLD) 24,377 48,746 50% YOUTH (13 – 19 YEARS OLD) 9,755.1 91,951 10% KIDS (5–12 YEARS OLD) TARGET MARKET TOTAL POPULATION PERCENTAGE AGE
      • PASIG
      • MARIKINA
      • BY GENDER
      100% TOTAL 109215 218430 50% FEMALE 89832.5 179665 50% MALE TARGET MARKET TOTAL POPULATION PERCENTAGE GENDER 100% TOTAL 100623.5 201247 50% FEMALE 9499.5 189983 50% MALE TARGET MARKET TOTAL POPULATION PERCENTAGE GENDER
      • BY EDUCATION – Odyssey also offers discovery videos and other educational programs on discs.
      • BY LOCATION
      • DENSITY (URBAN) – Because Odyssey outlet which was identified in this study is located at Robinsons Metro East, most of their customer is came from urban areas because the market radius of the Robinson is dominantly urban areas.
      • BY RELIGION – Odyssey’s target market in terms of religion is the Christian because most of their religious videos and soundtracks are for Christian.
      • BY FAMILY – They also offer their movies for family. Comedy and drama movies targets the family and love stories target the couples.
      • PSYCHOGRAPHIC
      • Odyssey’s market segment are the “HIGH SPIRITS” which are the most vibrant and fun loving people. Because Odyssey provides entertainment and accessories, they focus on the customers who want improvement in their appearance or image and to be in with the crowd. High Spirit people want to be entertained and to have uplifting experience which was fulfilled by having cool accessories for their gadgets and entertainment by the movies and songs.
      • NEED SEGMENT
      • YOUTH SEGMENT – Because the “in demand” innovation is MP$ and other audio and video player, youth are the dominant customer for audio and video accessories like earphones, headsets etc.
      • NEED FOR ENTERTAINMENT – Odyssey offer products which can satisfy the need of the people to be entertain and fight boredom.
      • EDUCATIONAL NEEDS – These are some customers which nee some videos to educate themselves and sometimes requirement for school.
      • LIFESTYLE – Odyssey offer VCD’s for health and body conscious like aerobics and exercise movements on video.
      • BEHAVIORAL
      • Loyalty status: Odyssey offers soundtracks pf the latest album and songs of singers and their customer for that are the loyal fan of the singers. And because Odyssey first came in the mall than its competitor, they could have loyal customers which really trust the quality of the products that they offer.
      • Purchase frequency: customer only buy occasionally, because the product offered is not a basic commodity and only need for entertainment and fight boredom. Consumer only buys if they have time to go on shopping.
      • BUYING DECISION
      • Retail outlet performance can affect the buying decision of the customers. Reaching their target market doesn’t end in recognizing their needs and wants but in satisfying them. In case of the Odyssey outlet, they might successfully reach the target market even if they are low in location and store design and display. Because, they actually successful in recognizing the needs of the customer and provide clear information to the customers by means of salespeople and clear navigational aids. Also they offer deeper and complete assortment of merchandise than their competitor so that even if the competitor got the location and store design, customers will purchase in Odyssey. And satisfaction exists in the customer because they can assure that they will purchase good and quality merchandise by testing it before purchasing.
    • BUYING DECISION PROCESS
          • NEED RECOGNITION
      • Odyssey is classified in psychological needs. Odyssey provides the customers personal gratification feeling.
      • Customers always find entertainment and something cool most especially the youth segment; usually they feel gratified and enhance their image through having cool music/ audio accessories.
      • Customers are music lovers and love to sing so Odyssey offers “WOW” magic sing for those people who want to entertain themselves through videoke singing as past time.
      • Odyssey stimulates customers with the use of background music and visual displays and at the same time they provide learning about new trends and ideas by using of emerging new trends and artists.
          • INFORMATION SEARCH
      • The retailer’s objective is to limit the customer’s information search. It means that they need to provide a good selection of merchandise, so customers can find something to satisfy their needs within the store.
      • The outlet of Odyssey in Robinson provides deep assortment of the product and these are latest and updated releases of movies and soundtracks. The outlet has “Top 10 Recommended” category of CD’s and VCD’s. Also the service offered by the store is great because the salespeople can provide the information needed by the customers.
      • EVALUATION OF ALTERNATIVE
      • Odyssey provides good performance on the importance of attribute to the customer. For the customers it is important to be entertained and stay away from boredom and Odyssey satisfies them because of its merchandise offered. Also, they offer merchandise which is not offered by their competitor like movies of Warner Brothers.
          • CHOICE OF ALTERNATIVE
      • Customers sometimes don’t practice the evaluation of alternatives as suggested in multi attribute attitude model. They just buy the merchandise which satisfies their needs and wants and good on one attribute.
      • Astro Vision has greater advantage to Odyssey in terms of location and store design so the outlet create good performance through offering merchandise which the competitor haven’t offer and good customer service.
          • PURCHASING THE MERCHANDISE
      • Having good evaluation the store’s performance can lead to customer’s purchase. But they don’t always purchase a brand or item wit the highest evaluation. Because the item which the customer find may not be available in the store.
      • In case of Odyssey, this outlet offer deep assortment than its competitor. These are the assortment which is not offered by their competitor like the movies of Warner Brothers.
          • POST PURCHASE EVALUATION
      • After the customer avail the product they evaluate whether they are satisfied or not. There are customers who satisfied in their consumption and some are not. Though, before customer actually purchase the product, they test it if will operate properly, but there are some situation that the CD/VCD that they purchase is not operate properly with their player. And to provide good customer service, Odyssey gives one week warranty in their product. And the evaluation of store performance depends on the customers.
    • RETAIL MARKET STRATEGY
      • RETAIL MARKET
      • Odyssey has lack of competitive advantage in location and store design which are factors of having sustainable competitive advantage. But the store has advantage in other aspect like in building customer loyalty. They offer assortment of their merchandise which Astro Vision don’t have. They also give good and happy service which can be the asset of the outlet.
      • Despite of being low in location and wider area which can affect the outlet in competition negatively, there’s a reason also why the outlet is still there and competing with Astro Vision and it is because of being the first outlet came in the mall.
      • SUSTAINABLE COMPETITIVE ADVANTAGE
      • LOCATION –Based upon the location of the retailer we’ve chose, they don’t have any sustainable advantage against its competitor Astro Vision in terms of location. Although Astro Vision selected the best location for its store which is basically can be seen upon entering the mall and usually where people passes by. However, they are the first one which put up an outlet on that location. As of today, Odyssey is still out there competing against Astro Vision.
      • LOW COST OPERATION – As we observe, the area of Odyssey in Robinson is small so that it pays smaller amount of rent than Astro Vision which has wider area. It means that the sacrifice the location to provide much average price to their customer.
      • CUSTOMER LOYALTY – Odyssey offer “unique merchandising” because they have assortment of product which can avail only in their store. And that is the Warner Brothers product.
    • RECOMMENDATION
      • Renovation of the store and application of New Diversification of the company (Odyssey XL) in the outlet in order to attract more customers and to have a very close competition with Astro Vision.
      • Odyssey has new growth strategy which can be classified as “related diversification”. The company extends, develops and adds design in the store which is common and related in their merchandise. It has a big possibility of increasing the sales because of having “Odyssey XL” which can be their sustainable competitive advantage and cannot be copy by the competitor.