Lenati provides marketing and sales consulting. They address how retailers should respond to increased price transparency from smartphones and apps. Retailers need consistent pricing across channels to meet customer expectations. Trying to block apps or discount excessively risks losing customers. Instead, retailers should add value through exclusive products, loyalty programs, social responsibility, and bringing online info into stores.
1) "Next generation" retailers like flash sale sites dominate traditional online retailers in growing customer lifetime value in a customer's first year, capturing 385% of a customer's first month's spending on average compared to 94% for traditional retailers.
2) Customers of daily deal, group buying, and flash sale sites purchase nearly twice as frequently on average than customers of traditional online retailers, with 49-52 days between purchases compared to 89 days.
3) However, purchases from traditional online retailers are over 50% larger on average than from "next generation" retailers, at $105 compared to $61-82.
This document discusses how the economics of online advertising are affected by the supply and demand of digital ad impressions. It argues that treating all delivered ad impressions as equal creates an oversupply that depresses prices. By focusing on viewable impressions, the supply becomes limited like other media, and scarcity is reestablished. This benefits publishers by allowing them to charge prices more reflective of the true value provided to advertisers, increasing revenue potential for publishers. Overall, shifting to viewable impressions as the currency improves ad effectiveness measurement and creates a win-win scenario for advertisers, consumers, and publishers.
The document summarizes a study that analyzed how demographic-based TV media plans perform for key consumer packaged goods (CPG) brands. The study found that demo-based plans are inefficient, as they reach all buyer groups equally regardless of their value to brands. On average, brands wasted 30% of exposures on households that did not participate in their categories. Only 15% of exposures reached households that accounted for 80% of sales. Demographics are a poor surrogate for purchasing behavior, as over half of sales fell outside the largest demographic groups used for targeting. The findings suggest media plans should transition from demographic targeting to purchase-based audience buying to improve efficiency.
Sherry Hale, Director of Sales at Dealix, presented on strategies for used car advertising. She discussed how dealers often only advertise on one or two sites, missing opportunities from many online shoppers. Hale showed how the Dealix used car network provides access to millions of shoppers across many sites with just one contract. Dealers can target specific inventory, regions, and buyer types to pull in shoppers rather than just pushing ads. The network aims to help dealers capture more of their local market's 22,000+ monthly shoppers.
The document discusses advertising banners on the CarSoup automotive website. It provides an overview of banner ad formats and placements available, and argues that banner ads are an effective way for dealers to build brand awareness among potential car buyers researching vehicles online. Regular banner ad campaigns are presented as important for dealers to achieve "top of mind awareness" and get their "unfair share of the marketplace".
1) While mobile technology is often seen as exacerbating the problem of "showrooming" where consumers visit stores only to research products and then purchase elsewhere, the document argues that mobile could actually help retailers address showrooming.
2) The document shows that only about 2/3 of "showroomers" actually use mobile devices for this purpose, and suggests mobile offers opportunities for retailers to provide price reassurance, purchase assistance, and a better in-store experience to influence consumers to complete their purchase in the store.
3) Effective mobile strategies could include mobile coupons, price matching apps, social media integration, navigation assistance, and question/answer apps to enhance customer service, with the goal of prompting
This document discusses a study on shopper marketing conducted by the Grocery Manufacturers Association (GMA) and Booz & Company. Some key findings from the study include:
1) Shopper marketing investment is growing rapidly for many consumer packaged goods companies as they shift spending closer to the point of purchase.
2) Digital deal hunting by shoppers is on the rise as they conduct more online research before shopping trips.
3) Shopper marketers are using an expanded set of digital vehicles like search, social media, and mobile apps, requiring greater collaboration between sales, marketing, and retailers.
4) The study identifies 49 shopper marketing vehicles organized into 7 platforms, finding varying adoption levels of
Definitive Merchant Guide to Deals, Discounts and OffersBertrand CHARLET
This document discusses the expanding landscape of deals and discounts available to merchants and consumers. It outlines the rise of deal searching and how consumers now expect discounts on everything they buy. The deal options have grown drastically over time from traditional coupons to now include daily deals, flash sales, card-linked offers, and check-in deals. Merchants must understand this diverse deal landscape in order to choose the right promotional strategies that appeal to different customer segments and meet business goals.
1) "Next generation" retailers like flash sale sites dominate traditional online retailers in growing customer lifetime value in a customer's first year, capturing 385% of a customer's first month's spending on average compared to 94% for traditional retailers.
2) Customers of daily deal, group buying, and flash sale sites purchase nearly twice as frequently on average than customers of traditional online retailers, with 49-52 days between purchases compared to 89 days.
3) However, purchases from traditional online retailers are over 50% larger on average than from "next generation" retailers, at $105 compared to $61-82.
This document discusses how the economics of online advertising are affected by the supply and demand of digital ad impressions. It argues that treating all delivered ad impressions as equal creates an oversupply that depresses prices. By focusing on viewable impressions, the supply becomes limited like other media, and scarcity is reestablished. This benefits publishers by allowing them to charge prices more reflective of the true value provided to advertisers, increasing revenue potential for publishers. Overall, shifting to viewable impressions as the currency improves ad effectiveness measurement and creates a win-win scenario for advertisers, consumers, and publishers.
The document summarizes a study that analyzed how demographic-based TV media plans perform for key consumer packaged goods (CPG) brands. The study found that demo-based plans are inefficient, as they reach all buyer groups equally regardless of their value to brands. On average, brands wasted 30% of exposures on households that did not participate in their categories. Only 15% of exposures reached households that accounted for 80% of sales. Demographics are a poor surrogate for purchasing behavior, as over half of sales fell outside the largest demographic groups used for targeting. The findings suggest media plans should transition from demographic targeting to purchase-based audience buying to improve efficiency.
Sherry Hale, Director of Sales at Dealix, presented on strategies for used car advertising. She discussed how dealers often only advertise on one or two sites, missing opportunities from many online shoppers. Hale showed how the Dealix used car network provides access to millions of shoppers across many sites with just one contract. Dealers can target specific inventory, regions, and buyer types to pull in shoppers rather than just pushing ads. The network aims to help dealers capture more of their local market's 22,000+ monthly shoppers.
The document discusses advertising banners on the CarSoup automotive website. It provides an overview of banner ad formats and placements available, and argues that banner ads are an effective way for dealers to build brand awareness among potential car buyers researching vehicles online. Regular banner ad campaigns are presented as important for dealers to achieve "top of mind awareness" and get their "unfair share of the marketplace".
1) While mobile technology is often seen as exacerbating the problem of "showrooming" where consumers visit stores only to research products and then purchase elsewhere, the document argues that mobile could actually help retailers address showrooming.
2) The document shows that only about 2/3 of "showroomers" actually use mobile devices for this purpose, and suggests mobile offers opportunities for retailers to provide price reassurance, purchase assistance, and a better in-store experience to influence consumers to complete their purchase in the store.
3) Effective mobile strategies could include mobile coupons, price matching apps, social media integration, navigation assistance, and question/answer apps to enhance customer service, with the goal of prompting
This document discusses a study on shopper marketing conducted by the Grocery Manufacturers Association (GMA) and Booz & Company. Some key findings from the study include:
1) Shopper marketing investment is growing rapidly for many consumer packaged goods companies as they shift spending closer to the point of purchase.
2) Digital deal hunting by shoppers is on the rise as they conduct more online research before shopping trips.
3) Shopper marketers are using an expanded set of digital vehicles like search, social media, and mobile apps, requiring greater collaboration between sales, marketing, and retailers.
4) The study identifies 49 shopper marketing vehicles organized into 7 platforms, finding varying adoption levels of
Definitive Merchant Guide to Deals, Discounts and OffersBertrand CHARLET
This document discusses the expanding landscape of deals and discounts available to merchants and consumers. It outlines the rise of deal searching and how consumers now expect discounts on everything they buy. The deal options have grown drastically over time from traditional coupons to now include daily deals, flash sales, card-linked offers, and check-in deals. Merchants must understand this diverse deal landscape in order to choose the right promotional strategies that appeal to different customer segments and meet business goals.
Leo burnett the changing face of retail Leo Burnett
This white paper summarizes findings from a survey of 2,200 US adults about their perspectives on physical retail stores. Some key findings include:
1. Physical retail stores remain an important part of the shopping experience for many shoppers and product categories, despite the growth of online shopping. However, a new "shopper calculus" means retailers must optimize the in-store experience.
2. Shoppers want retailers to get the basics right - having the right products, convenient locations, and competitive prices - but surveys show retailers are still underdelivering on these fundamentals.
3. While price remains a key consideration, shoppers still value quality products and service. Retailers need to meet expectations on
Kelley Blue Book Presentation
For more information on various services available for car dealers, visit http://www.SocialAutoSales.com and join the online network set up by Ralph's ADP Social Media Reputation Management Team at http://www.ADPsocial.com
The document discusses how digital technology is changing consumer shopping behavior. It finds that while e-commerce currently accounts for a small percentage of consumer packaged goods (CPG) sales, it is the fastest growing retail channel. Certain CPG categories like diapers and vitamins are better suited to online shopping due to barriers like an urgency to consume or need to inspect products. The document examines how shopper needs around convenience, choice, and value can be met through both online and brick-and-mortar retail formats. It emphasizes that understanding shopper behavior and category characteristics is key to marketing success in the digital world.
This document discusses how technology can help car dealerships improve customer follow up and relationship building. It notes that effective follow up processes are especially important during economic downturns. The document highlights that consumers expect fast responses to their queries but dealers often do not respond quickly enough. It then discusses how lead notification programs can help dealers instantly contact consumers and improve response times, leading to higher sales and customer satisfaction.
Brand in Hand - How Brands can Influence the Shopping TripMolly Garris
This document discusses how brands can influence shopping trips through mobile devices. It finds that 50% of Americans will have smartphones by January, and these are becoming the most important shopping partners. However, while most marketers plan to increase mobile marketing, few rate their efforts as successful. Research with heavy mobile shoppers found that retailer websites lack enough brand details, while brand sites provide more value. The document suggests brands partner with retailers to provide rich content like videos, reviews and coupons on mobile to enhance the shopping experience. Different categories require different mobile solutions based on shopper needs.
Rep consumer experience_in_the_retail_renaissance_en_28_mar18_final_dm_CMR WORLD TECH
This document discusses how leading brands are building consumer experiences in the current retail renaissance. It finds that while many brands say they aim to put customers at the center, their efforts often fall short due to disconnected experiences. The report surveys over 500 retail and consumer goods leaders to understand how they harness consumer data and technology to engage customers. It reveals that brands overly focus on products over experiences and need to better understand customer needs.
11 Trends That Will Shape Shopper Marketing In 2018John Andrews
This document summarizes 11 shopper marketing trends that will shape 2018. Key trends include: 1) Traditional advertising is becoming less effective due to noise and people ignoring ads; 2) Voice assistants like Alexa will become common and further reduce product choices; 3) Retailers like Amazon are becoming major media companies; 4) Shoppers now control relationships with brands and have more information; 5) Shopping behavior is shifting from stores to products coming to consumers through various channels. Content will remain important to engage shoppers.
Tweeter Electronics: Marketing Case AnalysisDipak Senapati
Tweeter is a specialty consumer electronics retailer founded in 1972 providing mid to high-end equipment through 21 stores by 1996. While Tweeter's growth rate had been better than the industry average, it faced challenges with its sale-based pricing reducing its quality/service positioning. To address this, Tweeter abandoned sales, introduced Automatic Price Protection to assure best prices, and shifted marketing from print ads to radio/TV to promote competitiveness. This helped change consumer behavior from waiting for sales to everyday fair pricing, improving Tweeter's performance.
The debate and doubt is long over. Gone are the days when an e-commerce division
was the lonely stepchild of a merchant’s business, clamoring to prove its value.
e-Commerce has fully stepped up to assume its rightful place as a critical growth
channel for businesses in just about every industry. And now, with the emergence of
social and mobile commerce, and the continuing integration of these channels with
physical stores and contact centers, the e-commerce infrastructure has gone from
fringe to foundation. e-Commerce platforms are becoming cross-channel platforms,
serving as the core engine powering an entire cross-channel commerce operation. With
this evolution business managers need to think strategically about how to engage, sell
to, and serve customers across all established and emerging channels and devices.
The document discusses how retailers are working smarter by adapting to changes in consumer behavior and technology. It describes how leading retailers are implementing dynamic supply chains and merchandising, maximizing store efficiency, and offering customized shopping experiences. This allows retailers to stay competitive against online options and respond quickly to customer trends. The document also provides examples of how companies like Carrefour, Metro Group, and Moosejaw Mountaineering are innovating their operations and customer engagement to work smarter.
1. The document discusses digital advertising solutions and products that can be provided to auto dealers, including digital advertising assets, specialized microsites, landing pages, and campaign management services.
2. It notes that spending on digital advertising by auto dealers is projected to increase 84% over the next 5 years, and digital advertising represents a major revenue growth opportunity.
3. The document advocates that dealers should shift advertising spending from newspapers to digital advertising formats like video and paid search.
1) Retailers can use location-enabled technology like geofences and push notifications to target customers based on their real-time location and drive them to stores. Geofences use GPS, cell towers, and WiFi to detect when a smartphone user is near a specific location.
2) Retailers should set multiple, layered geofences around their store and neighborhood to send timely offers to customers as they enter different proximity zones. They can also target customers near competitors' stores to draw them in.
3) By combining location data with time, past purchases, and on-site behaviors, retailers can send highly personalized push notifications to influence purchases and increase loyalty. This approach is more effective than traditional
Placecast Shopalerts - Mobile Payments Showswedeeb
"It's the wallet, not the transaction" presentation to Mobile Payments Show on Sep 8, 2011.
-Demand for location-based push offers
-Market opportunity for offline commerce driven by mobile media
-ShopAlerts case study
-ShopAlerts features
This document discusses using shopper typologies and segmentation to inform ecommerce strategies and website design. It recommends conducting surveys of website buyers to understand who they are demographically, their attitudes, shopping behaviors, and needs. The results can be used to identify the most important and profitable customer segments for the website. These key segments then drive decisions around the website tone, architecture, tools, content, and merchandising to best meet the needs of the primary target segments. Qualitative research with personas helps illustrate differences between segments to guide design. The overall goal is to align the website and digital strategy with the most valuable shopper types.
OgilvyOne Worldwide and OgilvyAction set out to discover how the growing penetration of smartphones influences the way people build brand preference and select, purchase and experience products in three representative international markets: the United States, the United Kingdom and Singapore. Marketers and retailers alike need to know where to focus their energies and how they can make the biggest impact on their bottom lines. The report reveals some surprising insights - conclusions that go against conventional wisdom - and some thought starters to identify the opportunities ahead.
REimaginging the Retail Store: GlobalShop 2011 PresentationLeo Burnett
Alan Treadgold (Head of Retail Strategy for the Leo Burnett Group) and Bryan Gailey (Retail Design Director for Arc Worldwide) recently presented at GlobalShop 2011 in Las Vegas the headline findings from Leo Burnett / Arc's REimagining the Retail Store research program.
This keynote presentation was delivered to over 600 conference delegates, and was recognized as one of the most impressive presentations at the event.
Omninomics Creating a more connected value chainFrank Smith
The document discusses how the fashion industry is adapting to meet the demands of omni-channel retail and empowered consumers. It introduces the concept of "omninomics" - how the fashion value chain has evolved into an interconnected network to collaborate and provide seamless shopping experiences across channels. It provides examples of how companies like Bonobos are personalizing experiences through both physical stores and digital channels to better understand customers, create improved products, and drive higher online conversions. The key is for all partners across the value chain to work together using shared data to quickly get the right products to consumers through their preferred channels.
The document discusses how the role of retail stores is changing as e-commerce grows. It notes that customer satisfaction in stores is declining by up to 15% per year as online retailers offer lower prices and more convenience. However, the value of physical stores is evolving as they increasingly focus on experiences over physical goods. The document suggests retailers must adapt by integrating local, personalized services with online convenience to create more fluid retail experiences. Lessons can be learned from industries like fashion, hospitality, and community networks on designing experiences that merge physical and online shopping.
March Issue of STOrai featuring a contributory article from Caroline PapadatosABC India
Turning Retail Footfalls into Retail Gains: This article by Caroline Papadatos in the latest edition of STOrai, highlights how data is a retailer’s key for turning footfalls into financial gains. Caroline outlines that the marketer's journey still begins with the traditional measures of brand consideration - building retail awareness, building a positive attitude to brands, and incentivising trial.
The document discusses how the consumer decision journey has changed from a linear funnel process to a more circular one with four phases: initial consideration, active evaluation, closure, and post-purchase. It notes that consumers now have more brands under consideration during active evaluation compared to the traditional funnel model. The number of touchpoints during active evaluation that involve consumer-driven activities like reviews and word-of-mouth has also increased significantly. Finally, it argues that marketers need to align their strategies and spending with the different phases of the consumer decision journey in order to most effectively influence purchase decisions.
A cause d’Internet, on ne va plus dans les magasins forcément pour acheter mais pour essayer, regarder, tester avant d’aller en ligne pour tenter de trouver moins cher. Certains magasins, avant des points de vente, sont devenus des showrooms. L’utilisation massive de smartphones va-t-elle augmenter ce phénomène ou pourrait-elle, paradoxalement, aider les magasins à inverser la vapeur ?
Marketing PlanBy Tara SeitlerThe Gap Company 1.docxinfantsuk
Marketing Plan
By: Tara Seitler
The Gap Company
1
1
Agenda
Current Marketing Situation
Market Description
Product Review
Competitive Review
Distribution Review
SWOT Analysis
Micro-environments
Macro-environments
2
Current Marketing Situation
Market Description
Target Market
Market Targeting strategy
Value proposition – The Gap Company
Consumer behavior
Buyer decision principles
3
Target Market
GAP is a brand-builder.
We create emotional connections with customers around the world through inspiring product design, unique store experiences and compelling marketing.
It’s goal is to simply make it easy for customers to express their personal style throughout their life.
GAP hoped that effective Web initiative could let company to solidify its brand, improve customer relationships, serve markets that could not support a store and cut costs.
Company also believed that going online would attract new customers and steal market share from competitors.
4
Target Market- Segmentation
Target Section of Market
Residential,
Non-residential,
Mobility and
Personal
Buyers Category
Upper middle and upper class individuals
5
Marketing Strategy
Marketing objective is to create a perception in the mind of the customer about the product.
Build image of product as a different product through adopting the strategy of differentiation of porter
Restructure the business
6
Restructure Business
Transform business management focusing on from quantity to profitability
Reduce fixed cost and downsize business structure to fair size
TV set business
Product
Create competitive products on its strength
Cost structure
Thoroughly improve cost structure
Restructuring
Completion of domestic sites integration and acceleration of overseas sites restructuring
7
Pricing Decision and Strategy
Keep Retailer and Customer pricing strategies different
Captive Product Pricing
The company makes its pricing strategies by having the knowledge of its competitor`s pricing
We can include USB connectivity devices
We can include Home Theatre along with
The prices of these accessories are kept relatively than other brands.
8
Sale Strategy
Sale Strategy - Sale Through
Manufacturer whole seller/dealer consumer
Sale Out (Sales To the retailer)
Manufacturer (company) Authorized Dealers
9
Sale Through
Whole seller/retailers are the customers of manufacturers, manufacturers sell their products to the Whole seller and indirectly (through retailer) to the end consumers.
This process of selling is called “Sale Through”
Sale Out :
The company will sell the products to the retailers which are actually the customers of the Company.
There will be no medium used between the company and the retailer.
This procedure of selling is called “Sale Out”
9
Value Proposition
They are predicated value proposition from the mindset of your custome ...
Leo burnett the changing face of retail Leo Burnett
This white paper summarizes findings from a survey of 2,200 US adults about their perspectives on physical retail stores. Some key findings include:
1. Physical retail stores remain an important part of the shopping experience for many shoppers and product categories, despite the growth of online shopping. However, a new "shopper calculus" means retailers must optimize the in-store experience.
2. Shoppers want retailers to get the basics right - having the right products, convenient locations, and competitive prices - but surveys show retailers are still underdelivering on these fundamentals.
3. While price remains a key consideration, shoppers still value quality products and service. Retailers need to meet expectations on
Kelley Blue Book Presentation
For more information on various services available for car dealers, visit http://www.SocialAutoSales.com and join the online network set up by Ralph's ADP Social Media Reputation Management Team at http://www.ADPsocial.com
The document discusses how digital technology is changing consumer shopping behavior. It finds that while e-commerce currently accounts for a small percentage of consumer packaged goods (CPG) sales, it is the fastest growing retail channel. Certain CPG categories like diapers and vitamins are better suited to online shopping due to barriers like an urgency to consume or need to inspect products. The document examines how shopper needs around convenience, choice, and value can be met through both online and brick-and-mortar retail formats. It emphasizes that understanding shopper behavior and category characteristics is key to marketing success in the digital world.
This document discusses how technology can help car dealerships improve customer follow up and relationship building. It notes that effective follow up processes are especially important during economic downturns. The document highlights that consumers expect fast responses to their queries but dealers often do not respond quickly enough. It then discusses how lead notification programs can help dealers instantly contact consumers and improve response times, leading to higher sales and customer satisfaction.
Brand in Hand - How Brands can Influence the Shopping TripMolly Garris
This document discusses how brands can influence shopping trips through mobile devices. It finds that 50% of Americans will have smartphones by January, and these are becoming the most important shopping partners. However, while most marketers plan to increase mobile marketing, few rate their efforts as successful. Research with heavy mobile shoppers found that retailer websites lack enough brand details, while brand sites provide more value. The document suggests brands partner with retailers to provide rich content like videos, reviews and coupons on mobile to enhance the shopping experience. Different categories require different mobile solutions based on shopper needs.
Rep consumer experience_in_the_retail_renaissance_en_28_mar18_final_dm_CMR WORLD TECH
This document discusses how leading brands are building consumer experiences in the current retail renaissance. It finds that while many brands say they aim to put customers at the center, their efforts often fall short due to disconnected experiences. The report surveys over 500 retail and consumer goods leaders to understand how they harness consumer data and technology to engage customers. It reveals that brands overly focus on products over experiences and need to better understand customer needs.
11 Trends That Will Shape Shopper Marketing In 2018John Andrews
This document summarizes 11 shopper marketing trends that will shape 2018. Key trends include: 1) Traditional advertising is becoming less effective due to noise and people ignoring ads; 2) Voice assistants like Alexa will become common and further reduce product choices; 3) Retailers like Amazon are becoming major media companies; 4) Shoppers now control relationships with brands and have more information; 5) Shopping behavior is shifting from stores to products coming to consumers through various channels. Content will remain important to engage shoppers.
Tweeter Electronics: Marketing Case AnalysisDipak Senapati
Tweeter is a specialty consumer electronics retailer founded in 1972 providing mid to high-end equipment through 21 stores by 1996. While Tweeter's growth rate had been better than the industry average, it faced challenges with its sale-based pricing reducing its quality/service positioning. To address this, Tweeter abandoned sales, introduced Automatic Price Protection to assure best prices, and shifted marketing from print ads to radio/TV to promote competitiveness. This helped change consumer behavior from waiting for sales to everyday fair pricing, improving Tweeter's performance.
The debate and doubt is long over. Gone are the days when an e-commerce division
was the lonely stepchild of a merchant’s business, clamoring to prove its value.
e-Commerce has fully stepped up to assume its rightful place as a critical growth
channel for businesses in just about every industry. And now, with the emergence of
social and mobile commerce, and the continuing integration of these channels with
physical stores and contact centers, the e-commerce infrastructure has gone from
fringe to foundation. e-Commerce platforms are becoming cross-channel platforms,
serving as the core engine powering an entire cross-channel commerce operation. With
this evolution business managers need to think strategically about how to engage, sell
to, and serve customers across all established and emerging channels and devices.
The document discusses how retailers are working smarter by adapting to changes in consumer behavior and technology. It describes how leading retailers are implementing dynamic supply chains and merchandising, maximizing store efficiency, and offering customized shopping experiences. This allows retailers to stay competitive against online options and respond quickly to customer trends. The document also provides examples of how companies like Carrefour, Metro Group, and Moosejaw Mountaineering are innovating their operations and customer engagement to work smarter.
1. The document discusses digital advertising solutions and products that can be provided to auto dealers, including digital advertising assets, specialized microsites, landing pages, and campaign management services.
2. It notes that spending on digital advertising by auto dealers is projected to increase 84% over the next 5 years, and digital advertising represents a major revenue growth opportunity.
3. The document advocates that dealers should shift advertising spending from newspapers to digital advertising formats like video and paid search.
1) Retailers can use location-enabled technology like geofences and push notifications to target customers based on their real-time location and drive them to stores. Geofences use GPS, cell towers, and WiFi to detect when a smartphone user is near a specific location.
2) Retailers should set multiple, layered geofences around their store and neighborhood to send timely offers to customers as they enter different proximity zones. They can also target customers near competitors' stores to draw them in.
3) By combining location data with time, past purchases, and on-site behaviors, retailers can send highly personalized push notifications to influence purchases and increase loyalty. This approach is more effective than traditional
Placecast Shopalerts - Mobile Payments Showswedeeb
"It's the wallet, not the transaction" presentation to Mobile Payments Show on Sep 8, 2011.
-Demand for location-based push offers
-Market opportunity for offline commerce driven by mobile media
-ShopAlerts case study
-ShopAlerts features
This document discusses using shopper typologies and segmentation to inform ecommerce strategies and website design. It recommends conducting surveys of website buyers to understand who they are demographically, their attitudes, shopping behaviors, and needs. The results can be used to identify the most important and profitable customer segments for the website. These key segments then drive decisions around the website tone, architecture, tools, content, and merchandising to best meet the needs of the primary target segments. Qualitative research with personas helps illustrate differences between segments to guide design. The overall goal is to align the website and digital strategy with the most valuable shopper types.
OgilvyOne Worldwide and OgilvyAction set out to discover how the growing penetration of smartphones influences the way people build brand preference and select, purchase and experience products in three representative international markets: the United States, the United Kingdom and Singapore. Marketers and retailers alike need to know where to focus their energies and how they can make the biggest impact on their bottom lines. The report reveals some surprising insights - conclusions that go against conventional wisdom - and some thought starters to identify the opportunities ahead.
REimaginging the Retail Store: GlobalShop 2011 PresentationLeo Burnett
Alan Treadgold (Head of Retail Strategy for the Leo Burnett Group) and Bryan Gailey (Retail Design Director for Arc Worldwide) recently presented at GlobalShop 2011 in Las Vegas the headline findings from Leo Burnett / Arc's REimagining the Retail Store research program.
This keynote presentation was delivered to over 600 conference delegates, and was recognized as one of the most impressive presentations at the event.
Omninomics Creating a more connected value chainFrank Smith
The document discusses how the fashion industry is adapting to meet the demands of omni-channel retail and empowered consumers. It introduces the concept of "omninomics" - how the fashion value chain has evolved into an interconnected network to collaborate and provide seamless shopping experiences across channels. It provides examples of how companies like Bonobos are personalizing experiences through both physical stores and digital channels to better understand customers, create improved products, and drive higher online conversions. The key is for all partners across the value chain to work together using shared data to quickly get the right products to consumers through their preferred channels.
The document discusses how the role of retail stores is changing as e-commerce grows. It notes that customer satisfaction in stores is declining by up to 15% per year as online retailers offer lower prices and more convenience. However, the value of physical stores is evolving as they increasingly focus on experiences over physical goods. The document suggests retailers must adapt by integrating local, personalized services with online convenience to create more fluid retail experiences. Lessons can be learned from industries like fashion, hospitality, and community networks on designing experiences that merge physical and online shopping.
March Issue of STOrai featuring a contributory article from Caroline PapadatosABC India
Turning Retail Footfalls into Retail Gains: This article by Caroline Papadatos in the latest edition of STOrai, highlights how data is a retailer’s key for turning footfalls into financial gains. Caroline outlines that the marketer's journey still begins with the traditional measures of brand consideration - building retail awareness, building a positive attitude to brands, and incentivising trial.
The document discusses how the consumer decision journey has changed from a linear funnel process to a more circular one with four phases: initial consideration, active evaluation, closure, and post-purchase. It notes that consumers now have more brands under consideration during active evaluation compared to the traditional funnel model. The number of touchpoints during active evaluation that involve consumer-driven activities like reviews and word-of-mouth has also increased significantly. Finally, it argues that marketers need to align their strategies and spending with the different phases of the consumer decision journey in order to most effectively influence purchase decisions.
A cause d’Internet, on ne va plus dans les magasins forcément pour acheter mais pour essayer, regarder, tester avant d’aller en ligne pour tenter de trouver moins cher. Certains magasins, avant des points de vente, sont devenus des showrooms. L’utilisation massive de smartphones va-t-elle augmenter ce phénomène ou pourrait-elle, paradoxalement, aider les magasins à inverser la vapeur ?
Marketing PlanBy Tara SeitlerThe Gap Company 1.docxinfantsuk
Marketing Plan
By: Tara Seitler
The Gap Company
1
1
Agenda
Current Marketing Situation
Market Description
Product Review
Competitive Review
Distribution Review
SWOT Analysis
Micro-environments
Macro-environments
2
Current Marketing Situation
Market Description
Target Market
Market Targeting strategy
Value proposition – The Gap Company
Consumer behavior
Buyer decision principles
3
Target Market
GAP is a brand-builder.
We create emotional connections with customers around the world through inspiring product design, unique store experiences and compelling marketing.
It’s goal is to simply make it easy for customers to express their personal style throughout their life.
GAP hoped that effective Web initiative could let company to solidify its brand, improve customer relationships, serve markets that could not support a store and cut costs.
Company also believed that going online would attract new customers and steal market share from competitors.
4
Target Market- Segmentation
Target Section of Market
Residential,
Non-residential,
Mobility and
Personal
Buyers Category
Upper middle and upper class individuals
5
Marketing Strategy
Marketing objective is to create a perception in the mind of the customer about the product.
Build image of product as a different product through adopting the strategy of differentiation of porter
Restructure the business
6
Restructure Business
Transform business management focusing on from quantity to profitability
Reduce fixed cost and downsize business structure to fair size
TV set business
Product
Create competitive products on its strength
Cost structure
Thoroughly improve cost structure
Restructuring
Completion of domestic sites integration and acceleration of overseas sites restructuring
7
Pricing Decision and Strategy
Keep Retailer and Customer pricing strategies different
Captive Product Pricing
The company makes its pricing strategies by having the knowledge of its competitor`s pricing
We can include USB connectivity devices
We can include Home Theatre along with
The prices of these accessories are kept relatively than other brands.
8
Sale Strategy
Sale Strategy - Sale Through
Manufacturer whole seller/dealer consumer
Sale Out (Sales To the retailer)
Manufacturer (company) Authorized Dealers
9
Sale Through
Whole seller/retailers are the customers of manufacturers, manufacturers sell their products to the Whole seller and indirectly (through retailer) to the end consumers.
This process of selling is called “Sale Through”
Sale Out :
The company will sell the products to the retailers which are actually the customers of the Company.
There will be no medium used between the company and the retailer.
This procedure of selling is called “Sale Out”
9
Value Proposition
They are predicated value proposition from the mindset of your custome ...
The document discusses the opportunities and strategies for successful e-commerce ventures in Southeast Asia. It outlines four key drivers of e-commerce growth in the region: 1) proliferation of mobile devices and internet access, 2) improved delivery infrastructure, 3) new digital payment systems, and 4) large investments from e-commerce giants. The document argues that e-commerce sales in Southeast Asia will hit $88 billion in the next eight years due to these unstoppable driving forces. It provides strategies for businesses to leverage this e-commerce wave in Southeast Asia and succeed, including understanding consumers' shopping behaviors, differentiating products and services online, and utilizing social media as a demand channel.
Raymark | Beyond MPOS: Diversifying Retail Mobile Solutions for Greater ROIRaymark
This document discusses how providing retail sales associates with mobile devices can empower them and improve the customer experience. It notes that consumers now have more information than associates when shopping due to being constantly connected. Mobile devices can give associates real-time access to product information, pricing, inventory levels, and customer data to allow them to better assist shoppers. This positions associates to influence purchase decisions rather than just complete transactions, potentially increasing sales and customer loyalty.
Evolution of luxury retailers in disruptive Omni-channel worldesiml
1) The document discusses the evolution of luxury retailers in an omni-channel world. It explores strategies and implications of this trend for customer-centric retailers.
2) Luxury retailers have been slow to adopt omni-channel strategies compared to mass retailers. However, they are recognizing the need to engage with new generations of luxury customers who are digital natives and conduct significant online research.
3) True omni-channel integration across online and offline channels is needed to provide a seamless customer experience and maximize opportunities to build relationships at each touchpoint of the consumer decision journey.
1) The document discusses the continuum of direct marketing relationships between businesses (B2B) and consumers (B2C). At one end is branding only, and at the other end is direct sales. In between are insights, experiences, product testing, and hybrid models.
2) Customers and B2B buyers now expect convenient online shopping experiences similar to B2C. Over 50% of B2B buyers expect to make purchases online within 3 years.
3) Moving further along the direct continuum can improve brand control, increase conversions, and help grow and retain customers. While challenging, direct approaches may become necessary as other players adopt them.
Accenture: Multichannel Attribution Dec 2012Brian Crotty
Anticipating consumers’ every move to conversion is essential to realizing a strong return on marketing investment (MROI), yet, pervasive methods for understanding consumer behaviors fall short in a multichannel environment.
In the digital world, channel savvy, highly mobile, multiple device-happy consumers are in control. While they move from one media channel to another—and from one device to another—companies across industries are struggling to keep pace.
Anticipating consumers’ every move to conversion—and measuring every interaction across every channel—is essential to realizing a strong MROI and to sustaining competitive differentiation. Yet, pervasive methods for understanding consumer behaviors fall short in a multichannel environment.
As such, various attribution models and approaches have emerged to help businesses better capture and analyze consumers’ purchase journeys across both offline and online channels. Though a singular approach for measuring consumer data has yet to emerge, multichannel attribution holds exciting promise.
December 6, 2012
Accenture: ACN-interactive-pov-multichannel-attribution Feb 2013Brian Crotty
The document discusses the challenges of measuring marketing return on investment (MROI) in a multichannel environment where consumers move between devices and channels in nonlinear ways. Traditional attribution methods like last-click attribution are insufficient because they do not account for the influence of multiple interactions across channels. The document advocates for multichannel attribution approaches using techniques like clustering, neural networks, and analyzing big data from all consumer touchpoints to better understand the consumer journey and allocate credit and budgets appropriately among channels.
Following Your Customers Purchasing Processpmmcleod
This white paper outlines why you need to
change your marketing behaviour so it
matches the purchasing behaviour of
your customer. Applying the the Marketing Lens approach will ensure that your brand is present where your customers are.
This document discusses key factors for maintaining online commerce customer retention. It covers the 4 C's: conversion, automated channel crossings, cooperative communications with third parties, and clarity of messaging. Retention is increasingly important as ecommerce growth shifts from acquiring new customers to retaining existing ones. Data analytics and personalized messaging are critical to understand customer behavior and increase engagement of high value customers through relevant promotions.
Future Economics of Loyalty US - Manu SarnaManu Sarna
The document discusses how retailers can shift marketing spending from traditional mass promotions like flyers to more targeted loyalty programs using customer data. It argues that while flyers are very expensive, retailers see them as necessary but loyalty programs offer a better return on investment. The document advocates for a strategy called "nanotargeting" where customers receive highly personalized offers based on their past shopping behavior to generate more store traffic and sales. Retailers are cautious about this approach due to risks but it is presented as the future of retail marketing.
5 Omnichannel Strategies to Deliver an Effective Retail ExperienceMarianne Harness
An omnichannel solution gives users the liberty to choose a variation of touchpoints. Also, a successful omnichannel strategy eliminates silos to maintain a seamless experience that, in turn, helps optimize the customer journey. Check out this blog to find out the 5 Omnichannel strategies to deliver an effective retail experience.
This document discusses best practices for measuring the effectiveness of shopper marketing campaigns. It recommends measuring total campaign results rather than individual elements, as the full impact is seen through changes in brand share and shopper behavior. Large campaigns should use more sophisticated metrics than just lift and volume. Methods for measuring shopper behavior include analyzing shopper card data, conducting pre-and post-shop interviews, and observing shoppers in-aisle. No single method is perfect, so combining techniques can provide richer results.
Unit 2 focuses on key CRM concepts like cross-selling, up-selling, customer retention, personalization, and data management. It discusses CRM applications in marketing, customer service, and data analysis. Customer relationship management aims to understand customer needs and provide personalized experiences through tools like collaborative filtering, clickstream analysis, and different types of data collection and analysis.
This document discusses the importance of pricing strategy for retailers. It makes three key points:
1. Price is the top factor influencing shoppers' purchase decisions, so retailers must get pricing right from the start. Technology now allows more strategic pricing approaches like zone pricing and data-driven key value item selection.
2. Zone pricing can still be effective if retailers understand customer perceptions of different costs to serve across markets. Selecting the right key value items based on price elasticity data can significantly impact customers' overall price impression.
3. To maximize margins, retailers should avoid blanket price matching and instead use optimization tools and customer data to set competitive prices on a subset of carefully chosen key items, while allowing more pricing
This document provides an introduction to multi-channel retailing. It discusses how new technologies like mobile, tablets, and touchscreens are allowing retailers to connect with customers through multiple channels. The document is divided into chapters that discuss the benefits of multi-channel retailing and how specific technologies like tablets, mobile, and touchscreens can be used as part of a multi-channel strategy. It also discusses how an omni-channel approach can create a seamless shopping experience for customers.
Changes in consumer behavior, fueled by technology, require new marketing capabilities. Each year, $112 billion in advertising is wasted1. A new capability model, to optimize customer value at every interaction, is required. Progressive marketers that embrace this capability model have already realized hundreds of millions annually
for their firms.
This paper explores the fundamental changes in the business of marketing, then introduces a capability model for driving customer engagement in a connected world. This capability model enables robust optimization at “the moment
of truth,” when customers engage directly with brands.
Acxiom moment of truth white paper (10 6-10)[1]Ian Baynes
This document summarizes a white paper about developing new marketing capabilities to optimize customer engagement. It outlines a capability model with four main concepts: 1) Transitioning from broadcasting to narrowcasting advertising to reach the desired audience; 2) Using multidimensional consumer insights rather than a single data point; 3) Creating a marketing central nervous system to analyze customer behavior and optimize campaigns; 4) Achieving personalized and coordinated customer engagement, especially at the moment of interaction. The document argues this model can redirect 15-30% of marketing spend to more effective alternatives.
Similar to 6 Strategies to Address Price Transparency in Retail (20)
6 Strategies to Address Price Transparency in Retail
1. Lenati Point Of View
About Lenati Price Transparency: How to Address the
Lenati is an award-winning boutique
consulting firm that designs, imple- Paradigm Shift in Retail
ments, and optimizes marketing and
sales solutions for companies that
want to build stronger customer
connection. Based in the Pacific
Northwest, Lenati is well-known for
Introduction: Price Transparency is Here to Stay
intellectual rigor, expertise, and an
In a now-bygone era, retailers had considerable flexibility to charge a variety of prices for the
uncanny ability to perceive and meet
clients’ needs.
same product. It was simple: in a region where customers were willing to pay more, retailers
charged more. And in the information asymmetry of the pre-internet era, customers didn’t know
the difference.
About the Authors
But today, the patchwork quilt
Amazon’s Price Check app
of regional price variations is
no longer obscured from shop-
pers. The combination of
smartphones and price com-
parison apps has ushered in
the era of offline retail price
transparency. 70% of US
smartphone owners use their
Martin Mehalchin is a Principal
phones while shopping in-store
with Lenati. He leads the firm’s
(Source: Google & IPSOS OTX,
Retail and Consumer practice and is
a is a Brain Trust panel member
April 2011), and mobile bar-
on Retailwire.com He has dedicated code use increased 1,600%
his career to working with executives globally during 2010 (Source:
and managers to help them define Scanlife, December 2010). Both the Apple and Android app marketplaces boast over 100 price
their strategies and then translate comparison apps. The most popular apps in this category, including Amazon’s Price Check and
those strategies into results.
Ebay’s RedLaser, collectively sport millions of users. And these numbers grow daily.
The Dangers of Ignoring Price Transparency
Many retailers have been slow to recognize the full extent of the price transparency paradigm shift.
Best Buy didn’t react soon enough , and as a result, it has earned the reputation of essentially
functioning as Amazon.com’s showroom. Showrooming – in which shoppers research a product in
a brick-and-mortar store and then buy it online – is of increasing concern to retailers. Best Buy,
with a large footprint of brick-and-mortar store space, has been hit particularly hard. Q1 results,
released in May 2012, show same-store sales down 5% – while its online sales are up 20%. Best
Aura Cook is a Senior Consultant
Buy is responding by closing 50 stores and ramping up smaller mobile locations. It remains to be
with Lenati. She has over 10 years
of experience in multi-channel Retail
seen whether these measures will ultimately be effective.
specializing in strategy development,
consumer insights, market research,
merchandising, and business intelli-
gence.
1300 Dexter Avenue North #100 | Seattle, WA 98109 (800) 848-1449 | www.lenati.com
2. Lenati Point Of View
Key Takeaways
Cross-Channel Pricing: It’s Time for Consistency
Price transparency is a para-
Cross-channel retailers have historically offered lower prices in their online channel:
digm shift in how consumers
shipping costs haven’t been factored in to those prices. Due to concerns over cannibali-
shop and it’s not going away
zation, this online price advantage hasn’t generally been widely advertised. In today’s
Retailers need to ensure era of price transparency, however, it doesn’t matter whether retailers advertise the
prices are aligned across online savings or not: shoppers can quickly discover it, wherever they are.
channels because that’s The time has come for most retailers to finally align prices across all channels. Customers
what customers expect indicate a preference for this (67% of customers, according to a recent Stores.org story) and
its time for retailers to stop penalizing consumers (via higher prices) for making the effort to
Trying to mask prices or
visit a physical store. Retailers who implement an ―omni-channel‖ approach to inventory,
block price comparison apps
supply-chain and fulfillment can make a consistent pricing strategy work operationally and
will only turn customers
financially.
away
It is the retailers responsibil- How Not to Respond
ity to stay abreast of market
prices and have a proactive How should retailers respond to the new era of price transparency? We’ll start by de-
strategy to add value when scribing how not to respond:
competing on price is not a
viable option Play bad cop. The ―blunt instrument‖ approach some take is to disallow price com-
parison app use. During last year’s Black Friday, Best Buy hid the manufacturer bar
We recommend adding value codes of select items to discourage the use of scanning price comparisons apps. (NY
to products, services and Times, 11/12/11)
One bookstore’s hardline response to showrooming
brands by: This approach is bad
1. Offering exclusive product customer service
and is a sure recipe
2. Taking advantage of multi- for losing loyal cus-
channel opportunities tomers and generat-
3. Marketing social responsi- ing outraged re-
bility or community giving views on Yelp –
which can make or
4. Developing a localization
break a small business. Furthermore, not all customers use price comparison apps
strategy
to simply circumvent a purchase at a brick-and-mortar store. As one recent cus-
5. Providing a loyalty pro- tomer review of Amazon’s Price Check app indicated: ―I use this app not for price
gram (unless a huge difference), but to check the product review. It's so handy! I can
avoid buying things amazon community doesn't give a stamp of approval.‖
6. Bringing online information
into your stores Race to the bottom with discounting. Some retailers have taken a ―good cop‖
rather than the ―bad cop‖ approach and have offered to match whatever price their
smartphone-toting customers show that competitors are offering. However, from
the customer’s point of view, they may question why the retailer didn’t offer the
lower pricing from the beginning. Consumers know that retailers have the same
access to competitor pricing as they do, so not offering the lowest price upfront may
be viewed as inauthentic. In addition, time-strapped customers may find it easier to
simply purchase the lower priced item online, rather than haggling with a sales as-
sociate in-store.
1300 Dexter Avenue North #100 | Seattle, WA 98109 (800) 848-1449 | www.lenati.com
3. Lenati Point Of View
De-emphasize sales revenue and focus on showroom fees. A few months ago, Best Buy’s (recently-departed) CMO
indicated a willingness to forgo customer sales and fully embrace a showroom model: ―We collect...more profit from man-
ufacturers than we do from consumers," Judge told a Minneapolis advertising audience April 2. "People talk about Best Buy
as being a showroom. We've always been a showroom. We have a place where Sony and Samsung, etc., they pay to put
their products on the floor." (HispanicBusiness.com, 4/26/12) Forgetting about sales in a big-box footprint clearly isn’t a
sustainable strategy, however. Retail bloggers have pointed out that manufacturers can opt to simply open their own
showrooms, and Amazon.com is following Apple’s lead in opening brick-and-mortar stores.
Offer unique SKUs that aren’t really unique. In the effort to prevent price comparison with smart phones, Best Buy
began relabeling the barcodes of their big ticket items last year. Meanwhile Target, in a more honest effort to prevent
showrooming, mailed an urgent letter to their suppliers asking for support by creating unique, exclusive products just for
Target. (Wall Street Journal, 1/23/12) However the challenge for Target, Best Buy and similar retailers, is that a large por-
tion of their SKUs are commodities and it is challenging to create meaningful differentiation for these types of products. A
42‖ flat-panel 1080p HD LCD screen TV with a slightly different monitor design is basically the same product regardless of
a unique manufacture code. And purposely making it difficult for customers to compare very similar items is a frustrating
experience, and will ultimately turn customers away.
Recommended Strategies
Rather than ignore it or try to fight it, retailers need to adjust right along with their customers to this new age of price transpar-
ency. Ultimately their customers will be armed with prices from their competitors while they shop, including the low margin
online-only retailers. So what is a primarily brick-and-mortar retailer to do? First and foremost, it is up to the retailer, no mat-
ter how small, to stay abreast of market prices through a pricing service or simply skimming the internet. In order to stay in-
tune with changing customer preferences and needs, retailers need to be armed with at least the same information that their
customers have available. Second, retailers need to add customer-perceived value to their products and services that justify a
higher price than an online-only retailer. To add-value successfully, we recommend six strategies which will be discussed in
further detail below.
1. Offer Exclusive Product
After house brands gradually evolved through the 20th century, they have ex-
ploded in the 21st. House brands offer built-in protection against showrooming,
as there exists no direct SKU-level equivalent at another retailer. Retailers from
Sephora to Macy’s to Supervalu have increased their private-label penetration in
recent years due to higher margins and anticipated competition in national labels.
And Target is known for their designer collaborations offering unique, limited-time
creations. For small retailers, it becomes even more critical that they stay close to
their customer needs and offer hard-to-find, limited stock items. In the day and
age of abundance and unlimited choices, ―uniqueness‖ is a factor that customers
will pay for.
Sephora private label skin care
2. Take Advantage of Multi-channel
Rather than fighting to keep customer dollars inside their brick-and-mortar stores, some retailers are using their online channel
to build the value prop for shopping in-store. For example, Nordstrom sales associates are now equipped with mobile POS de-
vices that give them access to the company’s entire inventory, including Nordstrom.com, for expanded selection and finding out
of stock items. By offering free shipping on all orders, regardless if ordered online or in the store, Nordstrom is truly becoming
―channel agnostic‖ and is opening all doors to their customer. As a Nordstrom executive explained: ―Shipping costs are some-
thing that have been known to stop customers in their tracks….We have tried to break down those barriers as much as we
can.‖ (Bloomberg New, 3/9/12)
1300 Dexter Avenue North #100 | Seattle, WA 98109 (800) 848-1449 | www.lenati.com
4. Lenati Point Of View
Wal-Mart is also pushing their online store as an extension of the in-store shopping experience. For example, it now
coaches its employees to actively guide customers to visit Walmart.com on smartphones for products that are out-of-
stock, and is currently investing in an initiative called Endless Aisle, which makes this process automatic. ―We are liv-
ing in the age of the customer, and you can either fight these trends that are happening — showrooming is one — or
you can embrace them,‖ said Joel Anderson, the chief executive of Walmart.com for the United States. ―We have a lot
of assets, but they’re only assets if you embrace the trends of the customers.‖ (New York Times, 7/4/12)
And as customers get more tech savvy, retailers don’t even need a sales associate to direct them to the extended se-
lection of their online store. Smartphone shoppers can be encouraged to use Quick Response (QR) codes that direct
them to the online offering. ―Out of stock? Not the color you’re looking for? Scan here and shop our online store.‖ By
actively using the online channel to overcome hurdles that often drive consumers to sites like Amazon, retailers are
keeping their sales dollars in-house and providing great service by letting their customer decide how they want to
shop.
3. Add Value by Giving
The paying price is only one factor that impacts the perceived
value when customers are considering purchasing a product.
Some obvious benefits, such as a generous return policy,
―perks‖ with purchase (like free tailoring or annual cleaning of
an appliance), and personalized service, justify paying a little
more. But customers also take into consideration other factors
that aren’t so obvious. Factors such as company charity giving,
community involvement, and environmental responsibility, help
customers justify spending money. In the end, shoppers like
shopping, so anything that helps them feel like they are giving TOMS Shoes 2011 holiday ad
in addition to getting (like TOMS shoes one-for-one shoe dona-
tion) ups the value of a store or product for a large portion of the population, especially younger generations.
4. Get Local
One advantage that a brick-and-mortar store has over an online store is the physical location within a community,
which in turn makes it easier to create an authentic connection with a customer. And actively becoming part of a cus-
tomer’s local community (rather than a faceless chain store)
can create loyalty and value to the shopping experience. Even
within the mass coffee chain Starbucks, customers have ―their
Starbucks‖ which can often be just a few blocks away from
another. With this understanding, national chains such as Ma-
cy’s, Walgreens, and Trader Joe’s have ―localization‖ strategies
in the effort to make each store unique and become part of the
community. But in order to win over the temptation of online
pricing, retailers need to go beyond offering localized product –
they need to actively reach out to their consumers and create a
community that is specific to the area. For example, athletic
retailer Lululemon’s success can be attributed, in large part, to
the ―yoga community‖ they created in each store by partnering
Lululemon in-store yoga classes with local yoga studios and offering free classes in store. Con-
sumers are sensitive to inauthentic attempts, though – local
strategies that come from ―corporate‖ generally feel fake. So in order to really connect with the local community and
create loyalty, the retailer needs to foster a philosophy of community outreach and connection by incentivizing store
employees and encouraging creativity.
1300 Dexter Avenue North #100 | Seattle, WA 98109 (800) 848-1449 | www.lenati.com
5. Lenati Point Of View
5. Provide a Loyalty Program
With a look into the travel industry (i.e. airline miles, hotel points), we can see that customers will choose to pay a
little more in the short-term if they believe they are earning a bigger benefit in the long-term through a well-appointed
loyalty program. A well-executed, easy to understand loyalty program can help brick-and-mortar retail stores retain
customers and keep eyes from wandering looking for better
deals. Safeway’s ―just for u‖ program, for example, offers indi- Safeway’s “just for u” loyalty program
vidualized, loyalty-based pricing to participating customers
through an online or mobile phone app (in addition to their Safe-
way Card discounts). Women’s apparel retailer Chico’s give a 5%
discount when its members spend over $500, and reports that
90% of their sales come from loyalty program customers. Tar-
get provides a 5% discount on all purchases made with its Target
Visa, and is considering a subscription service that would provide
discounts to customers on products that they purchase regularly.
Buying into the REI cooperative gives members special coupons
and an end-of-year cash dividend based on the amount they
spent the previous year. Although each of these loyalty programs
are different, what is consistent is that they are easy for the customer, and provide enough reward that the customer
feels there is more value in spending in one place than shopping around for deals. And almost always, the short-term
profit loss experienced by the retailer from providing rewards is outweighed by the long term gain in customer spend.
6. Bring Online Information In-Store
Brick-and-mortar stores have the advantage of physical product and sales persons, while online stores have the ad-
vantage of customer reviews and an abundance of information. The value of a sales person’s knowledge & opinion is
being replaced by product ratings, customer reviews, and the opinions of a social network. In order to feel fully in-
formed, many shoppers research online before checking out products in-store, and this research often includes pricing
information. But by using smartphones or touch screen technology, brick-and-mortar retailers could actively bring the
abundance of online information in-store, and eliminate the need to research online before checking out the physical
product. Imagine a camera store, that provides a smart phone application for its customers that would bring up all the
online reviews of a particular product just by the scan of the bar code. Customers would be armed with product rat-
ings, sales person guidance, and physical exploration of the product all in one place. Once they make a well-informed
decision, they can walk out with the product that minute.
In the end, customers want information before making a purchase, and this need goes up based on the price of the
item. Letting customers physically explore the product and get all the information they want in-store essentially kills
two birds with one stone, and this convenience may give brick-and-mortar retailers added value justifying a higher
price.
Conclusion
In this world of abundance and instantaneous information, it becomes even more critical for retailers to stay in tune
with their customer needs and wants. Pricing transparency isn’t a competitive threat, it is a paradigm shift in how con-
sumers shop. But by understanding what your customer values beyond the price ticket – whether it be uniqueness,
convenience, perks, social responsibility, community, or information - and offering it to them, what the price tag says
is only the beginning of the customer decision.
For More Information
To discuss this article or to learn about Lenati’s retail solutions, please contact Martin Mehalchin at
mmehalchin@lenati.com.
1300 Dexter Avenue North #100 | Seattle, WA 98109 (800) 848-1449 | www.lenati.com