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Monday, December 14, 2015

4P’s Retail Marketing Strategy in Philippine setting

By Bryan Racines

Retail products are mostly caters the need and wants of the consumers this includes daily needs and other products and commodities. Product strategy is the decision to make the products available in one or multiple formats is a critical issue in the total marketing mix of satisfying customers. Creating a good brand will ensure the success of the product as well as achieving the retailers’ objectives and desired result.

The pricing schemes of many retail outlets are varied from local and multinational retailers, for types of products and outlets categories. Retailers decides to change their own product price upwards and downwards and deciding how much and for how long. New products are initially set a higher prices to skim maximum revenue from the segments who are willing to pay the higher price. When the new product become established or widely accepted already, retailers lower the price to attract the next price sensitive customers. A very good example is when retailer is on sale. The products are discounted from 10% up to 70%. On this strategy the market is attracted to go on that retail outlet because of the discounted price of the product. SM Malls practices this strategy on a timely basis. Most of the time SM have a 3 day sale on holidays especially on Christmas wherein people has money coming from their Christmas bonuses. Retailers initiates to maintain old price for a while to gain a strong foothold of market. Multi-branding pricing strategy to different target markets and different positioning approaches. After a retailer has selected its target market and positioning, then its pricing strategy together with other marketing mix elements becomes a crucial factor for success in achieving desired results. A pricing strategy to a large extent is determined by prior decisions on market positioning. Therefore, the more clearly a company can identify its objectives, the easier it is to set the price.

Marketing in the Philippines has become so complex, sophisticated and innovative that has go beyond developing high-quality products. Today, marketing has evolve into a creative and responsive marketing communications program. Promotions is a combination of personal selling, advertising, sales promotion and publicity. Retailers are in to this kind of marketing tools. They hire employees who can do a promotional program to target the market. Malls built billboard around the structure of the mall, supermarkets has a promo merchandiser to promote specific products, retail stores do their advertisements on social media to catch a big attention to the netizens. Promoting something is an activity offering added incentives to stimulate incremental purchase with the product over the short-run for a reason other than the product’s inherent attributes and benefits.

Place, means distribution channels and physical distribution. It is a vital ingredient of the total marketing mix, that ensures that the products availability to the right quantity, condition, cost and time. The marketing channels are also middlemen may be categorized into distributors, wholesalers and retailers. Most retail business in the Philippines uses this strategy to make sure that they actually target people in a right place. Let’s take look of the malls around the country. Business tycoons invest their money by just putting their business in a right place basically in some location that are populous.

If we combine the product, price promotions and place strategy this is the best retail strategies that will actually benefit the owners of the stores as well as the target market.

Six Espada

By: Sergio Villanueva
There are a lot of Retail Strategies that are used by Firms. The effectiveness of the retail strategies they choose to use will decide how profittable their buisness would be. Now, i will be giving the most effective retail strategy based on my understanding and i will give the top 6 strategies that i considered also important and effective.

For me, the most effective retail strategy is Retail Positioning. It includes the company's tatget market and differential advantage. As we all know, targetting allows us to tailor the marketing mix which includes product assortment, service levels, price, and  promotion, to the needs of their chosen target market. Without a clear knowledge on who your target market is and where do you find them, it would be impossibl e for you to decide on what product to sell and what to do afterwards. Differential Advantage gives customer reason to shop at one store rather than at another. The customer have set an expectation when he enters your store and has a separate expectation on the other store. Retail Positioning comes from the novelty in the process of  shopping offered to customers and the noveltt in the product and service offers. The way salesperson assist customer in buying product and brands, the way of the imteraction of the salesperson, the accesibiloty of the product or brand the customer is looking for, determines how satisfied the customer is with your store. When a customer has a certain product or brandin mind, the salesperson assistance and suggestions would only irritate or make the customer angry. But, if the customer has no ide or specific product/brand in mind, the customer will allow the salesperson's suggestion to influence his/her choice.

The next effective Retail Strategy for me is the Store Atmosphere or Store Layout. The interior and exterior design of the store
Should match the target market's taste and the product you are offering to them. The design should be enticing and attractive that when a customer enters  the store he/she would be wanting or willing to buy your product.

The third effective retail strategy for me is the Product Assortment.
Retailer has to decide on the breadth and depth of the product and services they are offering. By expanding its product assortment,  the retailer reduced price sensitivity for customers. The retailers may also use service levels as a means of differentiating his offers when the product assortment is similar to those competitors.

The next one is the Retail Location. Of course retailers wouldnt want to put up their business where there is no chanve of profit in the area and the target market is no where to be found. So it is important to choose the location of the retail stores you are going to put up.

The fifth effective strategy is the Price. It is important to put up a competition with the competitors to the point where the competitors would closely lose all their profit to you.  It is important for you to reduce cost and maximize all the profit.

Last but not the least is the promotion. It is how you would want your product or store to be known  in the mass or the public. Whether you would advertise it in tv or radio, publish it in the newspaper and many more ways to promote.

Six Espada

There are a lot of Retail Strategies that are used by Firms. The effectiveness of the retail strategies they choose to use will decide how profittable their buisness would be. Now, i will be giving the most effective retail strategy based on my understanding and i will give the top 6 strategies that i considered also important and effective.

For me, the most effective retail strategy is Retail Positioning. It includes the company's tatget market and differential advantage. As we all know, targetting allows us to tailor the marketing mix which includes product assortment, service levels, price, and  promotion, to the needs of their chosen target market. Without a clear knowledge on who your target market is and where do you find them, it would be impossibl e for you to decide on what product to sell and what to do afterwards. Differential Advantage gives customer reason to shop at one store rather than at another. The customer have set an expectation when he enters your store and has a separate expectation on the other store. Retail Positioning comes from the novelty in the process of  shopping offered to customers and the noveltt in the product and service offers. The way salesperson assist customer in buying product and brands, the way of the imteraction of the salesperson, the accesibiloty of the product or brand the customer is looking for, determines how satisfied the customer is with your store. When a customer has a certain product or brandin mind, the salesperson assistance and suggestions would only irritate or make the customer angry. But, if the customer has no ide or specific product/brand in mind, the customer will allow the salesperson's suggestion to influence his/her choice.

The next effective Retail Strategy for me is the Store Atmosphere or Store Layout. The interior and exterior design of the store
Should match the target market's taste and the product you are offering to them. The design should be enticing and attractive that when a customer enters  the store he/she would be wanting or willing to buy your product.

The third effective retail strategy for me is the Product Assortment.
Retailer has to decide on the breadth and depth of the product and services they are offering. By expanding its product assortment,  the retailer reduced price sensitivity for customers. The retailers may also use service levels as a means of differentiating his offers when the product assortment is similar to those competitors.

The next one is the Retail Location. Of course retailers wouldnt want to put up their business where there is no chanve of profit in the area and the target market is no where to be found. So it is important to choose the location of the retail stores you are going to put up.

The fifth effective strategy is the Price. It is important to put up a competition with the competitors to the point where the competitors would closely lose all their profit to you.  It is important for you to reduce cost and maximize all the profit.

Last but not the least is the promotion. It is how you would want your product or store to be known  in the mass or the public. Whether you would advertise it in tv or radio, publish it in the newspaper and many more ways to promote.


Super Mall

By John Leonard Castillo

A lot of retail stores here in our country have their own kind of strategy that will make their store standout. The retail strategy should not be only unique, but also it should be hard to imitate by their competitors in terms of how they serve their customers, how they sort their merchandise, their store design and display, their communication mix, their pricing, and their location. All of these strategies should have a distinctive competence that adds value to their beloved customers. Based on my experience, I have encountered a lot of services coming from the retail outlets convincing me to buy their products. SM is one of the best retail outlets here in our country, or I should say the best of the best retail outlet I have ever encountered. Since my childhood, SM has already had its name firmly established in the field of retailing. Their retail strategies were well defined and well communicated by their service employees. They make sure of their employees that they are properly trained to lead the customers in buying their merchandise.
Customer service is one of the most effective strategies in the field of retailing. Keeping the existing customers happy is very crucial in a retailing firm and it creates in the customer’s mind the perception of a retailing business that is easy to do business with. It is an excellent competitive weapon and has a special advantage over price competition. SM has done it in terms of leading the field of retailing in customer service. Their service employees are well trained in terms of serving the customers more effectively and efficiently. It is true that a pleasing customer service done by a competent service employee has an advantage over price competition. In SM’s department stores, they have merchandises that are too high when it comes to its price, but customers would still manage to buy this expensive item because of SM’s service employees. In customer service, the most important thing is to keep your existing customers happy and comfortable buying your products.
Merchandise assortment is simple, but it can lead the way to the success of a retail store. SM has done it and still finds a way to improve their sorting of merchandise. When it comes to their department store, the merchandise are properly arranged according to their nature of functions. We call it segmentation. Segmentation is very important to a retail store because it plays a major role in running the business. Customers would always love to buy without hassle. If all the products are just presented without segmentation, customers would end up disappointed to that retail store who doesn't know segmentation and customers would find themselves going to another retail store with a better retail strategy. So, you see, segmentation, or merchandise assortment plays a critical role in a retail firm, it shouldn't be neglected by other retail outlets. If the SM doesn't know segmentation, then probably, Henry Sy would not be the richest man in the Philippines. What I am saying is, it all boils down to retail strategy. We have customer service, communication mix, location, pricing, store design and display, and merchandise assortment. All of these are retail strategies, all of them are important and should not be neglected.

Panoramic View

By Jilbi Alverne





To begin with the best and effective retail strategy for me is the ambiance of a store, I love seeing creativity everywhere I go to. Most especially when it defines the comfort of your inspirations. I believe that eyes are the first one to love; the eyes are the one who sees the beauty in everything. When we see something beautiful we easily say what we feel, we even go down to the result or outcome so quick. We don't try to solve or conclude first before everything.

My friends and I usually go somewhere beautiful, we are so creative we even enjoy going to different museum here in the country. For the retail store we usually visit those brands that are well known for not just producing cute and have a good quality but also have a good set up of ambiance something like forever 21, H&M and topman, etc. You know that feeling whenever you enter on those stores and you never want to leave and just stay there and act like it's your walk in closet. This strategy will never go out of style. The stores will continue to renovate until it meets the customers satisfaction when it comes on the comfort ability of the customers.

Another good retail strategy that I have encountered is the location. I'm very adventurous and I love traveling having a good cup of coffee with a perfect view is a combo. My friends and I travel far just to have this kind of combo we usually go to Tagaytay just to have a sip of that combo, but whenever we are in the mood we will continue on driving until we reach Batangas. Batangas has these perfect beaches if you don't want to go too far from manila. Same with shopping malls, we like those malls that have a good location it's either surrounded by buildings or by this panoramic view. Having a variety of choices in one location is superb what I'm saying is that you have different spot depends on your mood. For example, Nuvali in Laguna, you have the mall if you're feeling you want to buy something, but if you want to emote and think deeper there is the man-made lake.

I also enjoy huge or wide malls because it allows you to walk more and focus on the things that are beautiful. I mean it will be easy for you to find something. Well I don't know for you, but for me wide establishments allow me to be more sensitive with my surroundings.  That is the reason  I really like Ayala in Makati because it has everything, I mean you have three (3) to four (4) different malls there in just crossing the streets. It doesn't show competition because each mall is different; its ambiance is different from another. For example, Greenbelt is different from landmark; landmark at the same time is different from Glorieta. It's just a bonus point that it has a wonderful ambiance that is Instagram worthy, I love posting artsy picture on my Instagram wall and able to share it with my friends.


SM Mall of Asia Justifies its Name

by Gladys Maala


                    In the world of retail, strategy is everything. Spend is directly tied to retail merchandising techniques and that means shop owners need to get creative if their mission is to maximize customer spend. The customer experience rules of the past are now the myths that are suppressing retailers from remaining relevant in the customer's eyes. As a retailer, the first place you should look is towards your customers' complete omnichannel experience. Customers have taken the reigns by defining their own shopping experiences, and they should have the ability to consume your brand seamlessly across all channels. That is, if you want to meet them where they are and allow them to purchase your product. This brings us to the preeminent myth for retailers seeking to improve customer experience.
                  Everyone had an experience from a retailing store and that experience might be good or bad. Something to remember or not.An experience that made them come back to you or something worth forgetting for. I am the kind of girl that always wanted to go out, go to the mall not to buy something but to just go around as my stress reliever. There are many malls I’ve been through but there’s this one mall that I like most.The SM Mall of Asia. SM Mall of Asia is a shopping mall in Bay City, Pasay, Philippines, near the SM Central Business Park, the Manila Bay, and the southern end of Epifanio de los Santos Avenue (EDSA).
                  As one of the largest malls in the world, SM Mall of Asia (MOA) justifies its name. The huge conglomeration of shopping and dining opportunities with its adjacent boulevard strip of bars in stone-throwing range of the Manila Bay is simply amazing.
                  Mall of Asia’s size and breadth can tire an onlooker if seen from a distance but this mall and the other buildings around it is where ShoeMart (SM) houses its headquarters. MOA enjoys a lot of foot traffic because of its mammoth size. Being the 11th largest mall in the world and the 3rd largest in the country, Filipinos residing in the metro and those from the provinces who visit the capital from time to time usually go to the Mall of Asia. Standing on reclaimed land, this mall by the bay is also home to the very first IMAX theatre in the Philippines. From clothes, hardware and groceries to ice skating, cinematic experiences and some of the most amazing events of the country – MOA has it all. After an entire day of shopping and entertainment, San Miguel by the Bay – the strip of bars at the Manila Bay – invites with cold drinks and hot performances.
              The mall's open-air music hall directly facing the sea has also held several events, contests and concerts. This is a perfect destination to someone that want to feel free from stress.The scenery of the sea makes one’s feeling calm and forget about stresses in life.
               When going back from Mall of Asia, having a car waiting for you at the parking space is an advantage. Trying to get a cab somewhere inside the Mall of Asia compound is nearly impossible because it is either prohibited or overpriced – or both. There is a taxi line but after events such as the international fireworks festival, getting a taxi home may take a while.
               Aside from the location and structure of the Mall that made them unique to others is that the customers service given by the salesperson.As a customer, I always love to shop if the salesperson treated me well and satisfies me to the service he/she has given. And the experience once I had in SM mall of Asia was good. That’s what Mall of Asia unique to other malls in the Philippines.
          Customer service relates to the service provided to customers before, during and after a purchase.No matter the size of your business, excellent customer service needs be at the heart of your business model if you wish to be successful. It is important to provide good customer service to all types of customers, including potential, new and existing customers.Although it can take extra resources, time and money, excellent customer service can generate positive word-of-mouth for your business, keep your customers happy and encourage them to purchase from your business again. Good customer service can help your business grow and prosper.

Sunday, November 22, 2015

The Gawkers

by Kevin De leon

When I’m out shopping I typically encounter four different types of specialty retail associates.

The Gawkers. A Gawker is defined in the dictionary as "a spectator who stares stupidly without intelligent awareness." That may sound harsh, but if I'm out to spend money and a retail employee doesn't even acknowledge my existence, I'd say the definition fits. I'm sure that if you're a reader of this site you don't have any Gawkers on your team.

The Stalkers. Stalkers barely engage you when you come into their store or department, but follow you around hoping you’ll have a question or need. They're the human equivalent of an algae eater trying to suck up any easy business. The only value stalkers add to a customer's experience is getting something from the backroom, or removing any algae from your backside. As a customer I like Gawkers more than Stalkers — as long as they can ring up my purchase.

The Talkers. Talkers are very pleasant sales people and are some of the friendliest people you'll meet in retail. Talkers love to engage customers and they usually deliver a good experience. Talkers are great at answering customer questions, but rarely ask any of their own. Most Talkers love to talk about the company or the products, but without much of a sales focus they miss a fair number of sales opportunities.

The Rockers. Rockers are my favorite retail associates. They just plain rock the experience and turn up the sales volume. One store that has Rockers is my local Delia's, a retailer that targets girls and young women between the ages of 12 and 19. The young women in this store just rock!

They always welcome their customers and they also engage the non-buyers in the group. (That means dad.) They aren't at all pushy but they are assertive about moving their customer to the dressing room to try clothes on. Think about that. "Assertive" means making an all-out effort to win or succeed. "Pushy" is obnoxious. We should always be assertive without being pushy.

What I especially like about the Rockers at Delia's is that even though they have a young customer they are consultative sales associates. They give feedback on fit, style, and are extremely active in the dressing room. They're always running out to grab another size or another style for customer. That's not only great service, that's creating the sale.

Every time I go in that store with my daughters I happily leave money behind. There aren't many stores I can say that about, but then again there aren't a lot of stores that employ so many Rockers.

So let me ask, how many Gawkers, Stalkers, Talkers, and Rockers do you have on your team?