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Harrods (Viability Research)
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Harrods (Viability Research)

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Global Research Methods @ Emerson College

Global Research Methods @ Emerson College
Research Study Testing Viability Of Launching Harrods In Boston

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Harrods (Viability Research) Presentation Transcript

  • 1. Bringing Harrods to Boston Marie Nicolini, Agapios Papaioannou, Zeenat Rasheed, Stacey Subject
  • 2. Welcome to Harrods!   “World’s most famous department store”   One operating location in Knightsbridge, London   Extensive selection of products, 330 departments!   Unique shopping experience   Strong awareness worldwide
  • 3. Should Harrods open a store in Boston?
  • 4. Strengths & Weaknesses Product Strengths Product Weaknesses   Rich heritage and history   Huge variety could be overwhelming   Extensive and unique merchandise selection   May be unable to provide   High-quality as broad a selection due to lack of vendor access   Magical store experience   Existing relationships with global designers ensure that merchandise will also be available in the U.S.
  • 5. Opportunities & Threats Boston Market Opportunities Boston Market Threats   Affluent, well-educated   British culture might not and cultured adults translate well   Difficult economic times   Massclusivity   Customer brand loyalty to   Strong retail culture competitors   Deep cultural ties to   Declining interest in England department stores   First venture into foreign   Strong tourist base territory
  • 6. 3 Key Marketing Problems   Identifying Target Audience   Concept, brand, culture are very unique   Competition   Customer brand loyalty to existing favorite stores   Economic Crisis   Less willing to spend money on luxury brands
  • 7. Research Objectives   Examine overall evaluation of Harrods store concept   Investigate evaluation by attributes and store image   Determine purchase intention   Profile demographics and psychographics of target audience   Determine target audience’s attitudes and purchasing patterns at department store shopping   Understand level of competitor loyalties, as well as competitor strengths and weaknesses   Determine impact of economic crisis on target audience shopping behavior   Suggest marketing mix strategies and tactics
  • 8. Method: FGI   Sampling methods and profiles   11 participants (7 women, 4 men; aged 20-30)   All recruited by e-mails and personal requests   Convenience sampling   Not representative   Key Questions   General attitudes towards shopping at department stores   Competitive analysis   Overall evaluation of Harrods and purchase intention   Impact of economic crisis on Harrods viability
  • 9. Method: Survey   Data collection methods   Primary research: 100 surveys   Sampling methods and profiles   Non-probability, convenience sampling   Volunteers
  • 10. Method: Survey   Key Measures   Before Concept Board/Department Stores   General attitudes and purchasing patterns   After Concept Board/Harrods-specific   Overall evaluation/brand attributes   Purchase intention   Other Environmental Factors   Competition and brand loyalty to competitor   Impact of economic crisis
  • 11. Method: Survey   Data Analysis   SPSS statistical software   Cross-tabulation, T Test, ANOVA, Frequencies   Action Standard   High   Top 2 Box 70% , Mean Score 3.75   Justifications   Size of the investment   Company’s inexperience in expanding in foreign markets   Mature stage of the clothing market   Established competitors   Current economic crisis
  • 12. FGI Results   Perceptions of Department Stores   Positive overall attitudes   Benefits: variety and one stop shopping   “It’s a one stop shop and you have different department stores depending on where you are and what you want.”   Favorite Department Stores   Macys (4), Bloomingdales (3)   Saks Fifth Avenue, Barneys and Nordstrom   “Macys – because it’s most accessible to me… and it’s what I have at home, as well as here in Boston.”
  • 13. FGI Results   Perceptions of Luxury Department Stores   Saks Fifth Avenue (4), Neiman Marcus (2)   Bloomingdales, Lord & Taylor and Nordstrom (1) Neiman Marcus: very high end, yet poor service (snooty) (2) Barneys: very trendy, museum-like, celebrity-esque, modern and contemporary (3) Bergdorf Goodman: old lady stuff, old New York, classic yet sometimes tacky (4) Henri Bendel: no comments due to lack of awareness
  • 14. FGI Results   Perceptions of Harrods   Before Concept Board   Negative reactions: too expensive, too big   Positive reactions: “It’s a really extravagant place, like it’s always over the top, like everything, even the displays are so over the to, so extravagant.”   After Concept Board   Negative reactions: price, too luxurious   “Yeah, that’s what I didn’t like about the store it’s so overwhelming, so crowded…every room has like eight staircases that go to each room individually, it is a maze… it was just too much.”
  • 15. FGI Results   Potential Harrods Consumers   What celebrity would best represent Harrods?   Pierce Brosnan, Daniel Craig, Katie Holmes, Princess Diana, Prince Harry or William   Typical Harrods (non-celebrity) consumer: young, married, rich person, mid 30’s or older, “Wall Street,” “Art Gallery Dealer”   Harrods in Boston   “Harrods coming to Boston, would not be a wise choice”   Why: sheer size of the store, Boston’s lack of glamour, location, too much of a niche market, not enough wealth , too unique, may do better in other locations (New York or Los Angeles), Competition   If Harrods came to Boston: Chestnut Hill, Copley Place, Newbury Street, The Prudential Center
  • 16. Survey Results Attitudes towards Shopping at Department Stores   Favorable attitudes towards shopping at department stores (mean score of 3.70 on the 5-point scale)   Females indicated more favorable attitudes towards shopping at department stores (3.82) compared to males (3.39)
  • 17. Survey Results Motivations for Shopping at Department Stores   Necessity ranks highest among motivations for shopping at department stores   Females are motivated more than males by fun and seasonal sales
  • 18. Survey Results Key Factors that Contribute to Overall Shopping Experience   Quality ranks highest among key factors that contribute to overall shopping experience   More females selected environment/atmosphere of store and variety of merchandise than men
  • 19. Survey Results Frequency of Shopping at a Department Store   38% of respondents said they shop at a department store 1-2 times per month   Lower household income levels selected shopping 1-2 times per month more than higher income levels
  • 20. Survey Results Perceptions of Harrods Based on Concept Board   Favorable perceptions of Harrods passed the action standard (top 2 box 71%)   Females perceived Harrods more favorably than males   Younger demographics & lower household income levels more favorable than older demographics and higher household income levels
  • 21. Survey Results Evaluation of Harrods Store Attributes   Results are generally favorable to various degrees
  • 22. Survey Results Likelihood of Shopping at Harrods Store   The respondents of the study are not sure if they would shop at Harrods   Mean score of 3.24 on the 5-point scale and the top 2 box of 49%   Findings did not pass the action standard of this study   Mean score of 3.75 and a top 2 box of 70%
  • 23. Survey Results Reason for Liking/Disliking Harrods Likes (89) Dislikes (83) • Wide Variety (42%) • Expensive (59%) • Unique Experience (23%) • Overwhelming (21%) • Glamour (15%) • Too Exclusive (10%) • Celebrity Appeal (4%) • Other (24%) • Other (16%)
  • 24. Conclusions   Overall, reactions to individual store attributes were positive   Women > Men   Surveys > FGI   Uniqueness, variety, excitement, convenience, luxury, advantage over other stores, exceed expectations
  • 25. Key Concerns   Inaccessibility   Brand   Product   Price   Boston market not suitable for Harrods   Not “fashion forward”   NYC or LA
  • 26. Recommendations   Harrods is marketable   Many positive reactions to store attributes   However, we do not recommend Boston market   Explore other markets for suitability, e.g. NYC or LA   Positioning   Luxury, premium shopping experience for female shoppers   Investigate age, income factors to better define target audience
  • 27. Marketing Mix   Price   Product   Maintain premium pricing,   Export only most successful but downplay its role departments and services, not   Emphasize variety, quality, all 330 uniqueness   Focus on European lines to emphasize foreignness   Promotions   Distribution   Use PR/Events to create buzz   Use further research to   Promote sales through determine ideal market newspapers, magazines, Internet   Possibly NYC, 5th Avenue   Bold TV campaign to establish awareness and positioning
  • 28. Future Research Recommendations   Survey Method   Mall intercepts   Online surveys   Incentives   FGI Sampling   More representative of target audience   Age, income, social status and life stage   Greater category awareness   Concept Board   Price breakdown by inventory
  • 29. Questions? Thank You! Thank You!