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Observation Lab – Assignment 2

          Sumesh Nair
Crash course on Creativity- Observation Lab
                                                                   Store 1 – Footwear (fig 1)           Store 2- Cosmetics (fig 2)

Before you enter the store:

                                                                   Sale banner – Loud and clear (fig    Nothing outward. Offer popups don’t
Does the store draw you in? If so, how?
                                                                   1)                                   jump out – Opportunity lost

Is the door open or closed?                                        Closed (fig 1)                       Open (fig 2)

                                                                   Not too welcoming – but for the
How does this make you feel?                                                                            Vey welcoming.
                                                                   sale banner

How big is the sign lettering and in what font?                    Small, non lighted, shabby (fig 1)   Small but well lighted (fig 2)

                                                                   Believes outward appearances
                                                                   don’t matter. What matters is
                                                                                                        Visually more welcoming - more
What does it tell you about the store?                             inside! Possibly a one brand-
                                                                                                        customer oriented.
                                                                   hard to find outlet, people shall
                                                                   come in for quality of product

Environment:

                                                                                                        Neutral, Not much of wall space for
                                                                   Dull/ drab – Go in, finish your
                                                                                                        colour, peppered with banners and
What is the color scheme of the store? How does this affect you?   business and be out as soon as
                                                                                                        product placements. Not really giving
                                                                   possible
                                                                                                        a feel.
                                                                                                        Light colored stone flooring. Hardly
What type of floor does the store have? How does this effect the   Light colored stone flooring.
                                                                                                        noticeable
environment?                                                       Hardly noticeable

                                                                                                        Room height . Cramped. Prefer high
How high is the ceiling? How does this feel?                       Room height. Cramped
                                                                                                        ceilings
Fig 2
Fig 1
Shabby dim lighting. Not uplifting in any
How brightly lit is the store? How does this                                                      Very brightly. A collage of colors. Does build
                                                 way and does not induce any excitement to
affect you?                                                                                       up an enthusiam to visit the store
                                                 shop
                                                 Quiet. Creates doubts and apprehensions for      Lots of banter around.. Staff and people
How loud is the environment?
                                                 buyer. Not a good thing                          talking.
                                                                                                  People milling around, discussing choices,
What is causing the noise?                                                                        evaluating products plus salespeople
                                                                                                  bantering. Active and bubbly image
Is there music playing? If so, does it fit the
                                                 None                                             Yes. Barely noticeable
environment?

Is the store warm or cold?                       Right temperature                                Right temperature

Is the store crowed with merchandise or is it
                                                 Crowded. Unpacked boxes scattered all over       Crowded. All in neatly arranged aisles
sparse?

Does the store have a distinctive smell?         No                                               No

Where is the cash register located?              Back of store                                    Right of entrance

                                                                                                  Very ubiquitous. Right at entrance. Turn off
How visible is the store security?               None
                                                                                                  (Fig 3)
                                                 Finish your business and leave. Negative         Might linger a bit longer than time required
How long do you want to stay in this store?
                                                 impression created                               for purchase
                                                                                                  Adequate value perception for majority of
                                                 If anything, product value is perceived less.
Does the environment influence the perceived                                                      the products except for high va;lue
                                                 Converse as a brand is still an aspiration for
value of the merchandise?                                                                         cosmetics, which possibly is a misfit in the
                                                 many Indian buyers
                                                                                                  store (eg. Vichy products)

Personnel:

                                                                                                  By the time you reach an aisle, and that too
                                                 They let you browse at your pace. The initial    approached by multiple sales people for
How long does it take before a sales person
                                                 contact is not before one browse of the          different products during the time you spend
initiates contact?
                                                 store                                            in store. Personally find that very intrusive
                                                                                                  and ruins the shopping experience
No script. Not very well trained,
                                           which can be a big loss of
Does the salesperson have a script to      opportunity for selling a branded
                                                                                   Impromptu, but fairly knowledgeable
follow with each customer?                 medium value / high value product.
                                           Especially when catering to a well
                                           informed crowd
                                                                                   Yes, makes a few assumptions especially while targeting
                                                                                   the fairer sex. This could turn out to be right or wrong. For
Does the salesperson treat different                                               ex. Advocating acne cream for a acne ridden female could
                                           No. Again loss of opportunity
customers differently?                                                             adversely affect the sale by offending the buyer. Possibly
                                                                                   need to do a strategy rethink on approach and its
                                                                                   sensitivity on customers. Very interesting insight
                                                                                   Ratio is quite high. In the range of 1: 2 or 3 customers. Can
What is the ratio of salespeople to
                                           2 persons for the entire store          be a bit stifling for the buyer, especially when space is a
customers?
                                                                                   premium
What age and gender are the
                                           Male, <30                               Females, >20, <30
employees?
                                                                                   No. Could lend value to the products they are selling. But
Are the salespeople using the store
                                           Yes                                     then this is rarely seen in low value cosmetics and limited
products?
                                                                                   to high value
                                                                                   Yes, Apart from store uniform, some are brand specific.
Do the salespeople have a uniform?         No
                                                                                   (fig 3)
                                                                                   Not exactly. The store carries cosmetics and a mix of
                                                                                   brands ranging from economy to high priced cosmetic
                                           Yes, lends an informal air to the
                                                                                   brands. The store is trying to create a trendy upmarket
Do the salespeople match the stores        whole store, which is what is
                                                                                   image with most of the clientele being the middle class /
image?                                     expected of a footwear brand like
                                                                                   upper middle class. While their product knowledge is upto
                                           Converse
                                                                                   mark, they do not convey as being associated with high
                                                                                   priced goods

Products:

What is the first product that you notice? Single brand outlet. Multicolor shoes   Eyeliner in bright yellow packing. Packing matters (fig 4)

Is there a central display table with                                              Close to billing counter, Largely unnoticeable and wrong
                                           No
featured products?                                                                 positioning (fig 5)
Fig 3   Fig 4
The prominent discounts and offers are
                                                                                                placed at the beginning of every vertical row
                                                                                                of products, very much visible to every
                                                 Pretty much everything was on sale. No         buyer. Rest of the items have ‘sale’ marked
Where are items that are “for sale” located in
                                                 change in product positions during normal      clearly. Though how much of savings from
the store?
                                                 non sale period                                original price is not mentioned. For ex, Rs21
                                                                                                off for a bottle of X shampoo. If the actual
                                                                                                savings is captured, then chances of sales
                                                                                                closure will be higher (Fig 7 & 8)
How are the products arranged? By function?
                                                 Function. Not strictly though                  Purely by function
By price? By color?
                                                                                                Yes, samples are plenty. Demonstrations for
                                                                                                all major brands plus one independent
                                                                                                demonstration in the center. Makes the
Are there free samples or demonstrations?        None
                                                                                                buyer feel quite accessible to the products
                                                                                                they are buying. A good way to influence
                                                                                                buying decision (fig 6)
                                                                                                Almost all products at eye level, especially
                                                 2 rows of shoe displays are above eye level.
                                                                                                the known brands. Some of the lesser known
What products are at eye level?                  The store tends to lose out on shorter
                                                                                                brands and that too cheap products over eye
                                                 people who come in due to this.
                                                                                                level. Lack of display space is to be noted
                                                                                                Cheap, everday accessories like combs, hair
What items in the store are in the least         Neatly assigned shoe display units.            clips etc, for which the buyer has to bend
accessible locations?                            Everything accessible                          down and kneel. Considering their value,
                                                                                                store is doing the right thing
                                                                                                The expensive brands have well labelled
Where are the most and least expensive           No distinction whatsoever on the basis of      sections which makes it easier for the buyer
products located?                                price. It is difficult to differentiate        to zero in on the intended products. Brand
                                                                                                positioning is also not lost out .
                                                                                                Not at all easy with no clear markings,
Are the prices of the products easy to find?     Clearly marked price tags
                                                                                                making it difficult for the buyer
Fig 5   Fig 6
Fig 7   Fig 8
Yes. Chocolates, candies, etc. Avg sale per
Are there impulse items near the cash register? No                                              customer can be increased especially when
                                                                                                the value of products is less (fig 5)

Customers:

                                                                                                Almost entirely in groups. Friends, couples ,
Are most customers alone or with someone        Mostly in small groups. Few individuals as
                                                                                                buying decision is mostly consultative and
else? What is the relationship?                 well
                                                                                                reinforced with the group
What is the average age and gender of the       Teen upwards to less than 30. Male and          Teen upwards to less than 30. Mostly
customers?                                      female alike                                    females
                                                                                                No customer follows one particular path or
When a customer enters the store, do they       There are no aisles and it is a single room
                                                                                                direction. Havent been able to quite
tend to walk in the same path or direction? -   store with displays along walls.
                                                                                                understand the significance of this
                                                Most customers were browsing for deals,
How long do customers stay in the store, on     upon getting that information they make a
                                                                                                15 mins on average
average?                                        quick exit / purchase. About 10 mins would
                                                be average
                                                                                                Yes. This is encouraged to create a touch and
                                                                                                feel. As a result of this bonding store is giving
Do customer touch the products? Is this         Yes, neutral reaction, but the salesperson
                                                                                                the customer an impression of easily
encouraged?                                     eyes follow every move
                                                                                                accessible and customer friendly. Surprising,
                                                                                                but true
                                                On a mission mostly. Mostly male buying
                                                behaviour reflection , most buyers come in      Most customers are browsing. This could be
                                                with an idea of checking out shoes. The in-     due to the sheer volume of cosmetics as
Do most customers appear to be on a mission
                                                store buying decision hinges on choice, price   well. Most buyers come undecided on what
or are they browsing?
                                                only. Interesting , first time thought on how   to buy/ whether to buy. Female buying
                                                the nature of goods influences buying           behaviour exhibited. Very interesting insight
                                                decision, possibly based on sexes as well
                                                Not more than 10-20%. Sale being one factor
                                                                                                40-50% of customers who walk in
What percent of customers purchase products     to draw in crowds, it is only applicable on
                                                                                                buy.Possibly has to do with low value of
in the store?                                   certain section of products. These are high
                                                                                                products picked up.
                                                value products and aspiration goods
Other Observations:

                      The image of an aspirational brand is not       Hidden opportunity in terms of investment
                      echoing with the store image. Nearly all        in Human resources which can possibly
                      aspects including store layout, more catchier   translate into increasing sales conversions.
                      product positioning, innovative advertising /   Increasing floor space so that buyers get the
                      in store promotions could help boost sales.     feeling of space and airiness is a must.
                      Also the image of the product in the
                      customer minds right now is one of
                      pedestrian and there is dire need to bridge
                      the customer aspirations with product
                      pricing
• 1) Go to at least 6 different stores. They can be at the same
  shopping center or different locations. Spend at least 15
  minutes in each store making OBSERVATIONS using the lab
  guide for reference. Take photos to capture your
  observations.
• 2) Create a presentation that captures your INSIGHTS and
  HIDDEN OPPORTUNITIES. What types of things had you
  missed before? What were your biggest surprises? Are
  there opportunities hidden in plain sight?
• Use your photos to highlight your insights. Your
  presentation can be in the form of slides or a short video.
• Add the link to your presentation so that everyone can see
  it.
Observation Lab  - Assignment 2

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Observation Lab - Assignment 2

  • 1. Observation Lab – Assignment 2 Sumesh Nair
  • 2. Crash course on Creativity- Observation Lab Store 1 – Footwear (fig 1) Store 2- Cosmetics (fig 2) Before you enter the store: Sale banner – Loud and clear (fig Nothing outward. Offer popups don’t Does the store draw you in? If so, how? 1) jump out – Opportunity lost Is the door open or closed? Closed (fig 1) Open (fig 2) Not too welcoming – but for the How does this make you feel? Vey welcoming. sale banner How big is the sign lettering and in what font? Small, non lighted, shabby (fig 1) Small but well lighted (fig 2) Believes outward appearances don’t matter. What matters is Visually more welcoming - more What does it tell you about the store? inside! Possibly a one brand- customer oriented. hard to find outlet, people shall come in for quality of product Environment: Neutral, Not much of wall space for Dull/ drab – Go in, finish your colour, peppered with banners and What is the color scheme of the store? How does this affect you? business and be out as soon as product placements. Not really giving possible a feel. Light colored stone flooring. Hardly What type of floor does the store have? How does this effect the Light colored stone flooring. noticeable environment? Hardly noticeable Room height . Cramped. Prefer high How high is the ceiling? How does this feel? Room height. Cramped ceilings
  • 4. Shabby dim lighting. Not uplifting in any How brightly lit is the store? How does this Very brightly. A collage of colors. Does build way and does not induce any excitement to affect you? up an enthusiam to visit the store shop Quiet. Creates doubts and apprehensions for Lots of banter around.. Staff and people How loud is the environment? buyer. Not a good thing talking. People milling around, discussing choices, What is causing the noise? evaluating products plus salespeople bantering. Active and bubbly image Is there music playing? If so, does it fit the None Yes. Barely noticeable environment? Is the store warm or cold? Right temperature Right temperature Is the store crowed with merchandise or is it Crowded. Unpacked boxes scattered all over Crowded. All in neatly arranged aisles sparse? Does the store have a distinctive smell? No No Where is the cash register located? Back of store Right of entrance Very ubiquitous. Right at entrance. Turn off How visible is the store security? None (Fig 3) Finish your business and leave. Negative Might linger a bit longer than time required How long do you want to stay in this store? impression created for purchase Adequate value perception for majority of If anything, product value is perceived less. Does the environment influence the perceived the products except for high va;lue Converse as a brand is still an aspiration for value of the merchandise? cosmetics, which possibly is a misfit in the many Indian buyers store (eg. Vichy products) Personnel: By the time you reach an aisle, and that too They let you browse at your pace. The initial approached by multiple sales people for How long does it take before a sales person contact is not before one browse of the different products during the time you spend initiates contact? store in store. Personally find that very intrusive and ruins the shopping experience
  • 5. No script. Not very well trained, which can be a big loss of Does the salesperson have a script to opportunity for selling a branded Impromptu, but fairly knowledgeable follow with each customer? medium value / high value product. Especially when catering to a well informed crowd Yes, makes a few assumptions especially while targeting the fairer sex. This could turn out to be right or wrong. For Does the salesperson treat different ex. Advocating acne cream for a acne ridden female could No. Again loss of opportunity customers differently? adversely affect the sale by offending the buyer. Possibly need to do a strategy rethink on approach and its sensitivity on customers. Very interesting insight Ratio is quite high. In the range of 1: 2 or 3 customers. Can What is the ratio of salespeople to 2 persons for the entire store be a bit stifling for the buyer, especially when space is a customers? premium What age and gender are the Male, <30 Females, >20, <30 employees? No. Could lend value to the products they are selling. But Are the salespeople using the store Yes then this is rarely seen in low value cosmetics and limited products? to high value Yes, Apart from store uniform, some are brand specific. Do the salespeople have a uniform? No (fig 3) Not exactly. The store carries cosmetics and a mix of brands ranging from economy to high priced cosmetic Yes, lends an informal air to the brands. The store is trying to create a trendy upmarket Do the salespeople match the stores whole store, which is what is image with most of the clientele being the middle class / image? expected of a footwear brand like upper middle class. While their product knowledge is upto Converse mark, they do not convey as being associated with high priced goods Products: What is the first product that you notice? Single brand outlet. Multicolor shoes Eyeliner in bright yellow packing. Packing matters (fig 4) Is there a central display table with Close to billing counter, Largely unnoticeable and wrong No featured products? positioning (fig 5)
  • 6. Fig 3 Fig 4
  • 7. The prominent discounts and offers are placed at the beginning of every vertical row of products, very much visible to every Pretty much everything was on sale. No buyer. Rest of the items have ‘sale’ marked Where are items that are “for sale” located in change in product positions during normal clearly. Though how much of savings from the store? non sale period original price is not mentioned. For ex, Rs21 off for a bottle of X shampoo. If the actual savings is captured, then chances of sales closure will be higher (Fig 7 & 8) How are the products arranged? By function? Function. Not strictly though Purely by function By price? By color? Yes, samples are plenty. Demonstrations for all major brands plus one independent demonstration in the center. Makes the Are there free samples or demonstrations? None buyer feel quite accessible to the products they are buying. A good way to influence buying decision (fig 6) Almost all products at eye level, especially 2 rows of shoe displays are above eye level. the known brands. Some of the lesser known What products are at eye level? The store tends to lose out on shorter brands and that too cheap products over eye people who come in due to this. level. Lack of display space is to be noted Cheap, everday accessories like combs, hair What items in the store are in the least Neatly assigned shoe display units. clips etc, for which the buyer has to bend accessible locations? Everything accessible down and kneel. Considering their value, store is doing the right thing The expensive brands have well labelled Where are the most and least expensive No distinction whatsoever on the basis of sections which makes it easier for the buyer products located? price. It is difficult to differentiate to zero in on the intended products. Brand positioning is also not lost out . Not at all easy with no clear markings, Are the prices of the products easy to find? Clearly marked price tags making it difficult for the buyer
  • 8. Fig 5 Fig 6
  • 9. Fig 7 Fig 8
  • 10. Yes. Chocolates, candies, etc. Avg sale per Are there impulse items near the cash register? No customer can be increased especially when the value of products is less (fig 5) Customers: Almost entirely in groups. Friends, couples , Are most customers alone or with someone Mostly in small groups. Few individuals as buying decision is mostly consultative and else? What is the relationship? well reinforced with the group What is the average age and gender of the Teen upwards to less than 30. Male and Teen upwards to less than 30. Mostly customers? female alike females No customer follows one particular path or When a customer enters the store, do they There are no aisles and it is a single room direction. Havent been able to quite tend to walk in the same path or direction? - store with displays along walls. understand the significance of this Most customers were browsing for deals, How long do customers stay in the store, on upon getting that information they make a 15 mins on average average? quick exit / purchase. About 10 mins would be average Yes. This is encouraged to create a touch and feel. As a result of this bonding store is giving Do customer touch the products? Is this Yes, neutral reaction, but the salesperson the customer an impression of easily encouraged? eyes follow every move accessible and customer friendly. Surprising, but true On a mission mostly. Mostly male buying behaviour reflection , most buyers come in Most customers are browsing. This could be with an idea of checking out shoes. The in- due to the sheer volume of cosmetics as Do most customers appear to be on a mission store buying decision hinges on choice, price well. Most buyers come undecided on what or are they browsing? only. Interesting , first time thought on how to buy/ whether to buy. Female buying the nature of goods influences buying behaviour exhibited. Very interesting insight decision, possibly based on sexes as well Not more than 10-20%. Sale being one factor 40-50% of customers who walk in What percent of customers purchase products to draw in crowds, it is only applicable on buy.Possibly has to do with low value of in the store? certain section of products. These are high products picked up. value products and aspiration goods
  • 11. Other Observations: The image of an aspirational brand is not Hidden opportunity in terms of investment echoing with the store image. Nearly all in Human resources which can possibly aspects including store layout, more catchier translate into increasing sales conversions. product positioning, innovative advertising / Increasing floor space so that buyers get the in store promotions could help boost sales. feeling of space and airiness is a must. Also the image of the product in the customer minds right now is one of pedestrian and there is dire need to bridge the customer aspirations with product pricing
  • 12. • 1) Go to at least 6 different stores. They can be at the same shopping center or different locations. Spend at least 15 minutes in each store making OBSERVATIONS using the lab guide for reference. Take photos to capture your observations. • 2) Create a presentation that captures your INSIGHTS and HIDDEN OPPORTUNITIES. What types of things had you missed before? What were your biggest surprises? Are there opportunities hidden in plain sight? • Use your photos to highlight your insights. Your presentation can be in the form of slides or a short video. • Add the link to your presentation so that everyone can see it.