Mktg 361 Chapter 16 - Lecture notes 16 PDF

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Summary

Spring 2019; taken in person with Kathleen Wachter...

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Store Design Objectives Implement the Retail Strategy Build loyalty o Utilitarian benefits o Hedonic benefits Increase sales on visits Control costs to increase profits Meet legal considerations o Americans with Disabilities Act Design trade-offs

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Layouts

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Store Design Elements o

Grid layout For customers who want utilitarian benefits store offers Easy to find products that can be purchased quickly Cost-efficient Retailers want to increase center store sales o Racetrack layout  Also called loop layout  Major aisle guides traffic through different departments  Encourages unplanned purchasing o Free-form layout  Also called boutique layout  Fixtures and aisles arranged asymmetrically  Intimae, relaxed environment  Found in specialty stores Signage and Graphics o Call-to-action signage o Category signage o Promotional signage o Point-of-sale (POS) signage o Digital signage Feature Areas o Freestanding displays o Mannequins o End caps o Promotional aisle or area o Walls o Dressing room o Cash wraps  Point-of-purchase (POP) counters  Checkout areas Store Exteriors o Windows o Entrances o Exterior signage    

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Parking Landscaping

Space Management Space Allocated to Merchandise Categories o Space productivity  Sales per square foot  Sales per linear foot o Inventory turnover o Display considerations Location of Merchandise Categories o Demand/destination merchandise o Strike zone  First impression of store's offering o Impulse merchandise  Impulse products o Demand and promotional merchandise o Special merchandise o Category adjacencies  Encourage unplanned purchases o Location of merchandise within a category o Planograms o Virtual store simulation o Videotapes of consumers and spatial recognition systems Determining Store Size o Bigger not always better o Improvements in supply chain management help stores decrease size but still provide inventory o Stores benefit from less rent, fewer employees. Lower payroll costs, gain access to new markets o Customers face reduced selection, decreased comfort, little entertainment Visual Merchandising

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Fixtures o o

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Straight rack Rounder  Bulk fixture or capacity fixture o Four-way fixture  Feature fixture o Gondola Presentation Techniques o Idea-oriented presentation o Item and size presentation o Color presentation o Price lining o Vertical merchandising o Tonnage merchandising

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Creating an Appealing Store Atmosphere Atmospherics o Design environment by stimulation of the five sense Lighting o Highlighting merchandise o Mood creation Color o Warm vs. cool colors Music o Can add or detract o May affect consumers' behavior Scent Taste Just How Exciting Should a Store Be? Some stores create theatrical scenes Other stores use minimalist, warehouse-style Impact of environment depends on shopping goals o Task recreation Key Terms Atmospherics: the design of an environment through visual communications, lighting, colors, music, and scent to stimulate customers' perceptual and emotional responses and ultimately to affect their purchase behavior Boutique layout: a store design, use primarily in small specialty stores or within the boutiques of large stores, that arranges fixtures and aisles asymmetrically Bulk fixture: a round fixture that sits on a pedestal. Smaller than the straight rack, it is designed to hold a maximum amount of merchandise Call-to-action signage: in-store displays placed strategically to encourage customers to engage with the retailer through quick response codes Capacity fixture: a round fixture that sits on a pedestal. Smaller that the straight rack, it is designed to hold a maximum amount of merchandise Cash wrap: the places in a store where customers can purchase merchandise and have it "wrapped" - placed in a bag Category signage: signage within a particular department or sector of the store, category signs are usually smaller than directional signs. Their purpose is to identify types of products offered; they are usually located near the goods to which they refer Center store: the middle of each aisle in a grocery store or other store using a grid layout. Contains less compelling and exciting products, though ones that consumers still require such as cereal or detergent Checkout area: the places in a store where customers can purchase merchandise and have it "wrapped" - placed in a bag. Demand/destination merchandise: products that customers have decided to buy before entering the store Digital signage: signs whose visual content is delivered digitally through a centrally managed and controlled network and displayed on a television monitor or flat panel screen End cap: display fixture located at the end of aisle

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Feature area: area designed to get the customer's attention that includes end caps, promotional aisles or areas, freestanding fixtures and mannequins that introduce a soft goods department, windows, and point-of-sale areas Feature fixture: a fixture with two cross-bars that sit perpendicular to each other on a pedestal Fixtures: the equipment used to display merchandise Four-way fixture: a fixture with two cross-bars that sit perpendicular to each other on a pedestal Free-form layout: store design, used primarily in small specialty stores or within the boutiques of large stores, that arranges fixtures and aisles asymmetrically Freestanding display: fixtures or mannequins that are located on aisles and designed primarily to attract customers' attention and bring customers into a department in stores using a racetrack or free-form layout Gondola: an island type of self-service counter with tiers of shelves, bins, or pegs Grid layout: a store design, typically used by grocery stores, in which merchandise is displayed on long gondolas in aisles with a repetitive pattern Hedonic benefit: shopping for pleasure, entertainment, and/or to achieve an emotional or recreational experience Idea-oriented presentation: a method of presenting merchandise based on a specific idea or the image of the store Impulse products: products that are purchased by customers without prior plans. These products are almost always located near the front of the store, where they're seen by everyone and may actually draw people into the store Loop layout: a type of store that provides a major aisle to facilitate customer traffic that has access to the store's multiple entrances Mannequin: life-size representation of human bodies, used to display apparel Planogram: a diagram created from photographs, computer output, or artists' renderings that illustrates exactly where every SKU should be placed Point-of-purchase (POP) counter: places in the store where customers can purchase merchandise Point-of-sale (POS) signage: signs placed near the merchandise they refer to so that customers know the price and other detailed information Price lining: a pricing policy in which a retailer offers a limited number of predetermined price points within a classification Promotional aisle: area aisle or area of a store designed to get a customer's attention Promotional area: area aisle or area of a store designed to get a customer's attention Promotional signage: this signage describes special offers and may be displayed in windows to entice the customer into the store Racetrack layout: a type of store that provides a major aisle to facilitate customer traffic that has access to the store's multiple entrance Rounder: a round fixture that sits on a pedestal. Smaller that the straight rack, it is designed to hold a maximum amount of merchandise Sales per linear foot: a measure of space productivity used when most merchandise is displayed on multiple shelves of long gondolas, such as in grocery stores Sales per square foot: a measure of space productivity used by most retailers since rent and land purchases are assessed on a per-square-foot basis Straight rack: a type of fixture that consists of a long pipe suspended with supports going to the floor or attached to a wall Strike zone: the area in a retail store that customers pass through after the decompression zone where retailers display some of their most compelling merchandise

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Tonnage merchandising: a display technique in which large quantities of merchandise are displayed together Utilitarian benefit: a motivation for shopping in which consumers accomplish a specific task, such as buying a suit for a job interview Vertical merchandising: a method whereby merchandise is organized to follow the eye's natural up-and-down movement Visual merchandising: the presentation of a store and its merchandise in ways that will attract the attention of potential customers...