Insightful Observations of Local Retail Stores

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