Arcadians Inc.

Chandra Vijay Dubey (822-766-275) | Jitin Sharma (824-010-417)

Kamran Mahboob (821-546-389) | Mohammad Wamique Siddiqui (823-351-416)

Sher Hassan Mazari (822-576-021) | Subhasis Pal (823-387-253)

Selfridges & Co. Retail Concept

Marketing Research Project-Final Report

GBMP 509 – 01

Instructor: Hugh Samson

1. Executive Summary…………………………………………………..……….....03

2. Introduction………………………………………………………..……………..04

3. Objective……………………………………………………………..…………..05

4. Factors Considered For Targeting…………………………………....…………..07

5. Table 1: SuperDemographics.Com Based Data Analysis...……………………....08

6. Competitive Environment..…………………………..…………………………..09

7. Products & Services...…………………………………..………………………..11

8. Methodology & Key Criteria for Selection………………………………..……..13

9. Selection of Retail Store Location………………………………………………..14

10. Rationale of Decision…………………...………………………………………..15

11. References………………………………………………………………………..16

Table of Contents

The objective this report is to suggest “Selfridges & Co.” in operating as dynamic national

brands while launching a chain of major high street departmental stores in Canada focusing

on offering high-end Products and Services in each store location, while maintaining a very

high standard of customer service for our target consumer audience.

Selfridges concentrates in attracting a wide range of family oriented audience having a

relevantly higher disposable household income towards stores established on prime

locations within Greater Toronto Area.

A research has been conducted for selecting 7 potential prospective locations for our retail

concept by collecting information and key data from Super-Demographics, Google, and

other search engines about perspective target audience and competitors. The aim is clearly

to cater the wants and needs of a group of customers residing around key demographic

jurisdictions on the basis of factors such as high household income, high –end lifestyle,

high level of education, and high real-estate value.

Based on a pre-defined key criteria & matrices, prospective areas encompassing Greater

Toronto area, were identified as potential locations such as Yonge-Dundas Square, York-

dale Mall, Fairview Mall, Bloor-Yonge, Hillcrest Mall, Square-one Mall, and Oakville

Place.

Such prospective locations were eventually ranked, firstly by measuring a scale of

preference through target population data obtained from Super-Demographics, secondly,

by monitoring mall traffic or customer inflow data, and finally, by spotting the number of

potential competitors, around the jurisdictions in order to leverage the competitive

advantages and to reducing risk.

Selfridges is recommended to begin to operate from two remarkable locations yet quite

distinctive in terms of area types and population strata, but still identical in harboring rich

and high-end lifestyle customers living in and around points of circumference.

Both locations will expect a very high customer inflow, generating high sales volume and

profitability while reducing risk factors to minimum levels by analyzing our major/minor

potential competitors, general economic conditions and market fluctuations.

It is also recommended that both store locations should embrace the multi-cultural

Canadians in order to broaden its target market for capitalize advantages & opportunities

into success.

Executive Summary

Page: 03

Selfridges is one of the world's finest departmental stores that dominate the west end of

Oxford Street, London, United Kingdom.

Selfridges, also known as Selfridge & Co. is a chain of high-end departmental stores in the

United Kingdom. The flagship store on London's Oxford Street is the second largest shop

in the United Kingdom after Harrods and was opened on March 15th, 1909. The shop has

six floors offering ten acres of shopping space, eleven places to eat. From high fashion

wardrobe co-ordination to wedding lists, it has every shop you'll ever need. Recently,

Selfridges opened three more stores around United Kingdom.

Selfridges & Co. stores are known for architectural innovation and excellence, and are

tourist destinations in their own right. Selfridges provides customers to liberate and give

them the freedom to shop the pleasure of foods, drinks, rare sensual delights, with music

and the scent of perfume in the air. Selfridges caters to the elite class in the market.

Tradition for unique displays and unusual exhibitions continues to this day and is a major

reason to visit the store. Selfridges believes in ever changing innovative window displays,

which always attracts immense interest. Scores of excellent luxury and designer clothes

retailers, a superb Food Hall, and a number of first class restaurants all under one roof

make Selfridges.

Selfridges is not just a departmental store, it’s an icon. This kind of concept is very much

desirable in Toronto. Selfridges attract customers looking for designer and luxury brands,

whereas at the same time it is a tourist attraction like Harrods in London, United Kingdom.

Introduction

Page: 04

Selfridges has become a huge name in the European market in the recent years and is still

growing, the main reason behind its success is the long term objective to be in the market

and to create its brand value among the consumers. Selfridges operates among the elite

class of the society which targets a small segment of customers in the market. If the

company gets introduced in Canada, the main objectives will be to operate its business

among a small customer group having buying capacity.

Management Decision:-

There will be few problems in the initial stages with the Selfridges. One of the problems

that could be anticipated is a new market in Canada which have big competitors with their

own goodwill.

The market decision is also very important as everything is dependent on the quality of

research which is done before the introduction of Selfridges in Canada. The situation of

the market should be kept in mind so that minimal chances of errors are left. The

competitors should be kept in mind, including their market share and their turnovers; so

that the decision can be taken accordingly. These issues should be taken into consideration

as they can be a problem in marketing decision. The objective of Selfridges is to become

the most loved organization in the coming years among their customers as they concentrate

more on customer relationship and creating goodwill among them which is stated in Vision

Statement – “To be the most innovative and fashion forward department store in Europe,

offering the most exclusive brands to customers of all ages in an environment that is

entertaining and inspiring”.

Mission Statement - ‘To operate stores filled with brands and events that inspire customers

and staff, to deliver profitability’

Values - Selfridges have four stated values, which they uphold as a priority to maintain;

Customers: Our challenge to fulfill the high expectations that customers have of Selfridges

makes our stores unique, entertaining and fashionable. We house the best designer wear

products in the world and offer our customers exclusive access to highly seek after

collections.

Objective

Page: 05

Employees: We recognize the importance of our employees, and how significant they are

to the success of Selfridges. We strive to motivate, encourage and inspire our employees

as they work to deliver objectives and push the boundaries of what Selfridges is actually

capable of achieving.

Responsibility: We are one of the UK’s top ten ethically responsible company’s and we

endeavor to continue looking after the environment and society.

Innovation: We are an iconic brand because of our constant crusade to break boundaries,

start trends and provide innovative in-store and online experiences for our customers.

Objective Contd.

Page: 06

Following factors are considered for targeting locations and consumer behaviors:-

Population: Population of area is the most important factor for selecting a location for

the outlet. Population is (somewhat) directly proportional to the size of target audiences

we’ll be serving in any location.

Age-Group: It’s an essential attribute of population. Age-group tells us about the

customer decision making process. We can analyze, we initiates the decision making

process and who decides what’ll be finally purchased. This can be helpful in

positioning different products in the outlets.

Income: It determines who'll be targeted among the wide range of shoppers. The

business will be open to all audiences but the focused group will be of income $75,000

and more per annum.

Expenditure: An important factor in targeting the customers is analyzing their

purchasing behavior. Accordingly we can decide, what’ll be the focused portion of

store so that it can be prioritize and what can be added later after the store is open.

Lifestyle: Lifestyle profiling of the population can tell us about the most important

product from customer’s point of view. Different age group and people from diverse

ethnic origin have different needs. By focusing on their lifestyle, we can identify their

way of living and provide them with better services.

Resulted Locations:-

BLOOR & YONGE (Intersection)

Fairview Mall

Hillcrest Mall, Richmond Hill

Oakville Place

Square One Shopping Centre

Toronto Eaton Centre

Yorkdale Shopping Centre

Factors Considered For Targeting

Page: 07

F acto rs Target Group BLOOR & YONGE Oakville P lace Yorkdale H illcrest Fairview Eaton Centre Square One

SUMMARY Population Age 15+ 24935 2921 2231 9064 13398 16694 20779

INCOME Income $75,000 14.85% 10.25% 2.99% 6.31% 3.18% 14.28% 5.53%

POPULATION Age 15+ 91.08% 86.36% 87.70% 85.44% 82.19% 88.07% 84.51%

EDUCATION Population Age 15+ 24935 2921 2231 9064 13398 16694 20779

PROJECTIONS Annual Growth (2012-2017) 6.68% 16.25% 1.37% 26.33% 6.09% 8.47% 14.58%

Lifestyle Niche Gadget's Lovers 0.27% 0.00% 0.00% 0.00% 0.00% 3.06% 0.02%

Lifestyle Niche Balanced Professionals 0.02% 3.65% 0.00% 1.56% 0.00% 0.00% 0.00%

Lifestyle Niche Technocrats 1.60% 0.19% 0.00% 0.67% 0.00% 1.44% 0.00%

Lifestyle Niche Ethnic Achievers 0.00% 8.95% 0.00% 2.70% 0.00% 0.00% 0.13%

Lifestyle Niche Beautiful Homes 0.00% 0.00% 0.00% 0.38% 0.00% 0.00% 0.00%

Lifestyle Niche Visible Valuables 0.37% 0.00% 0.00% 16.54% 0.00% 0.00% 2.92%

Lifestyle Niche Buy Good Stuff For House 0.00% 0.63% 0.00% 0.00% 0.00% 1.53% 0.01%

Lifestyle Niche Home For Children 0.00% 0.00% 0.00% 0.29% 0.00% 0.00% 3.11%

Lifestyle Niche Downtown Dwelling 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Lifestyle Niche Home Make Over 0.83% 17.15% 5.19% 0.00% 0.00% 5.17% 0.19%

Lifestyle Niche Pursuit Of Health 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Lifestyle Niche Childcare Arts & Craft 0.00% 0.00% 0.00% 0.00% 0.00% 0.68% 0.02%

Lifestyle Niche Artistically Ambitious 0.00% 6.16% 0.00% 0.00% 0.00% 1.07% 0.00%

Lifestyle Niche Downtown Socialites 0.00% 6.69% 0.00% 0.00% 0.00% 0.00% 0.00%

Lifestyle Niche Work And Play 2.83% 0.29% 0.00% 1.16% 1.53% 0.56% 0.00%

Lifestyle Niche Children's Education 0.00% 0.00% 0.00% 1.64% 0.00% 0.00% 0.00%

Lifestyle Niche Insurance And Travel 6.26% 0.00% 0.00% 0.00% 0.00% 2.07% 0.40%

Table 1: SuperDemographics.Com Based Data Analysis

Page: 08

The introduction of a new products or services in the market encourages business to think

and implement new ideas, gives customers some changes in their taste. On the other hand

it creates a competition in the market. Every competitor’s main goal is to get most of the

share in the market. The competitive environment arises due to several factors, but here

we will focus more on service and product factors.

What makes Selfridges & Co. unique over other retail stores?

It has a huge international brand value and it generates more than 1billion turnover

annually.

It creates niche marketing by selling brands like, Armani, Giovanni, Gucci, Prada,

Virtue, etc.

Its ambiance is very unique and interesting which not only creates curiosity in the mind

of international tourist, but also pulls the domestic customers.

It has the facility to customize products and services according to the need and demand

of the consumers.

The Main Rivals in the Retail Market (Fashion Clothing & Luxury Goods):-

Sears

Hudson's Bay

Crate & Barrel

Holt Renfrew

The Main Rivals in the Retail Market (Food & Grocery):-

Loblaw

Sobeys

Metro

Walmart

Competitive Environment

Page: 09

Competitive Advantage Over Other Retail Companies:-

The retail industry is renowned for being one of the most competitive industries to operate

in due to fluctuating consumer demand, seasonal trends, and the sheer number of

competitors. Selfridges can mitigate some of this competition due to the range of

merchandise it supplies being far greater than some of the competitors.

According to the mentioned competitors in the retail market we can see a trend that most

of the retail companies are a bit scattered in their product and services.

If we talk about: Fashion Clothing & Luxury good – We can see that the customers will

have to go to Sears or Holt Renfrew to shop. If we talk about: Food & Grocery- We see

customers either going to Loblaw or Sobeys. It results too much of travelling, waste of

time and money.

Our concept of Selfridges & Co. is targeting the most valuable aspect of the customers, i.e.

time and money. In Selfridges & Co. we have everything under one roof. We are saving

time and money of the customers, as they no more have to visit from one store to other

store for their needs.

Moreover Selfridges will be giving online services where customers can pre order certain

commodities or customize it according to their wish. One of the most unique facilities

which we deliver is personal shopping, i.e. customers will be helped by specialist to choose

commodities and deliver it to them according to their demands.

Our business concept outclasses other retail stores and the main mantra behind it is

“Keeping everything simple and exclusive“.

Competitive Environment Contd.

Page: 10

The uniqueness of any product or service is one of the key characteristics which makes

product to stand apart from the crowd. It is the key factor which helps products and services

to be the chosen over other products. The need for the product differentiation is largely due

to the increased globalization factor. The shopping trend has been changed drastically all

over the world. The traditional trend of going to the market and purchasing your valuables

is not relevant anymore.

Selfridges is a concept that helps people to shop for almost all of their needs below one

roof, which helps them to save time. The needs of people have increased and so is the

shopping requirement like clothing, electronic appliances, foods and drinks, accessories

and footwear etc.

Nowadays people tend to spend less time roaming around searching for different products

and services from different shops. To cope up with this changing environment Selfridges

not only provide too many products and services under one roof but also gives the pleasure

of choosing from the top most luxurious brands in the world like Tom Ford, Versace and

Rolex. The different products which Selfridges offers are men, women and kids clothing,

footwear, beauty products, electronic appliances and many more. Selfridges not only gives

its customer a fascinating shopping experience but also imparts multifarious services like

international delivery, Selfridges’ gift cards and customer support; all making it a part of a

wonderful after sales experience.

Below are the few products that Selfridges offers:-

Men: Clothing, Shoes, Grooming products and various accessories.

Women: Clothing, Lingerie, Jewelry, Bags and footwear etc.

Children: Toys, Clothing and Child Care products.

Electronic and other appliances: PC's, Laptops, Gaming Consoles, Mobile Phones,

Lighting, Furniture and Glassware etc.

Refreshment: Branded wines and food for shopping as well as world class restaurants

and bars.

Products & Services

Page: 11

Below are the few services that Selfridges caters:-

Accessibility: Selfridges is fully accessible by all age groups. Accessibility & features

like free wheelchair hiring, prams, and spacious car park makes the shopping

experience more joyful.

Currencies: US Dollars, Canadian Dollars, Euro. British Pound, Swiss Francs and

Japanese Yen are the currencies which are acceptable at Selfridges.

International Delivery: Since Selfridges caters people who come from all over the

world, international delivery is that one feature which is enjoyed by most of the foreign

tourists and customers.

Products & Services Contd.

Page: 12

Businesses market products or services through targeted approaches to different segments

of the population. Demographics are the statistical component of marketing used to identify

population segments by specific characteristics. Businesses, whether large or small, need

a targeted approach to consumers. Demographics affect all the choices a business owner

makes in developing a marketing plan. Using demographics gives you a head start in

understanding potential market. This research can be commonly used to identify

differences in personal attributes among consumers. On the basis of such valuable and vital

information gathered, our group has identified the target population, relevant consumer

attributes, and other factors in order to select 2 out of possible 7 locations throughout

Greater Toronto Area.

Identification of Consumer & Target Market through Demographics:-

Common demographics include age, gender, Occupations population size, and population

of working and business class. However, our group also tracked other demographics like

education, household size, real estate value, and average Household and family income,

and projected population growth trends. Most demographics have been delineated by

specific ranges given to some of the core factors as stated above. Factors such as

Population, Annual Family income, level of education, life-style, home-owner ship status,

real-estate value, and future projection or trends of population growth were taken into

consideration for enabling management to reach a most plausible business decision.

Key Criteria to analyze 7 Ideal locations in GTA:-

In the following is the synopsis of key criteria that was analyzed through a ranking model

in determining the top two potential locations for Selfridges’.

Target Population: Families & Individuals

Target Household Income: $75,000 & Up

Lifestyle preference: Luxurious

Occupational preference: Professionals like Doctors, Lawyers, Celebrities, and other

Business Executives & Entrepreneurs

Methodology & Key Criteria for Selection

Page: 13

Based on analysis obtained from Super-Demographics, 2 locations have been finalized for

the launch of our Retail concept in GTA as Flagship Stores:-

Bloor-Yonge (Toronto, ON – Downtown Toronto)

A stand-alone store building is suggested to be constructed to place high-end products

& services in order to resonating higher household incomes and luxurious lifestyle with

the target audience, communicating the brand awareness, extending the legendary

ambience, and providing ease of convenience comparatively closer to their homes that

Selfridges is going to present in their neighborhood.

This location is situated on the cross-roads of Bloor & Yonge Streets, which surround

the most significant, affluent, and strategic proximity of Downtown Toronto. The

population consists of families and individuals belonging to Toronto urbanites. The

size of target population, average family income, household size, average 2011

household income, and high-end real-estate value/condominium development, and

deluxe lifestyle make this zone an ideal location as Flagship Store.

Oakville Place (Oakville, ON – Uptown Toronto)

Selfridges’ second prospective location would be launched inside Oakville Place Mall,

which is conveniently located on Trafalgar Road & Queen Elizabeth Way in Oakville,

Ontario. Oakville Place is an indoor shopping mall, opened in 1981 and underwent

extensive renovations completed in 2004, adding new retail space and a new food court,

offering more than 100 different stores.

Since Oakville place surrounds another effluent area, home to Sub-urban Torontonians

having above average high household incomes, experiencing a very somber and high-

end lifestyle. Oakville place is center of attraction of the same category of the people

belonging to surrounding municipalities such as Mississauga, Milton, Burlington, and

Greater Hamilton Area.

Oakville Place has been given preference over Hillcrest Mall in Richmond Hill. Key

criteria observed and analytical comparison were resulted in resemblance between

Oakville Place and Hillcrest Mall. Hillcrest Mall is situated comparatively close to

Bloor-Yonge location that already has been selected within Greater Toronto Area;

whether Oakville Place offers shopping experience for people residing or doing

business in Sub-Urban setting about 60km away from Downtown Toronto Core. Apart

from Oakville, residents of other South-Western Ontario communities may also be

attracted towards Selfridges & Co.

Selection of Retail Store Location

Page: 14 Page: 14

Rational decision making is described as a multi-step process, from problem identification

through solution, for making logically sound decisions. That multi-step process begins with

formulating goals or objectives, identifying the criteria for making the decision, identifying

alternatives, analysis, and a final decision. Rational decision making suggests that

Businesses will make well-informed choices that would maximize benefits minimize any

costs.

In Selfridges’ case, rational decision making process should help the organization in

identifying the best business location in order to take advantages of the competitive edge,

and to mitigate associated risks and disadvantages. In particular, the following factors

should be taken into careful consideration:-

Population

Identifying target population segments is the first and foremost step towards obtaining

goals and objectives. Marketers also keep track of future development plans and

projected growth rates of the areas around where that target population inhibits.

Competition

Well-established competitors around a particular location pose a significant threat to

any new business. Analyzing and monitoring their sales, tactical and marketing

strategies would ideally be another step for Selfridges & Co. to devise contingency

plans.

Traffic

Impulse purchases make up a good percentage of store sales, so high volumes of

pedestrian and vehicle traffic passing by store location is critical. Finding locations,

near points of attractions, schools, parks, sporting facilities and other businesses, is also

very helpful in increasing traffic. Mall traffic data can either be obtained from the

management of shopping malls.

Selfridges & Co. is not just a brand, but an icon offering a retail mix of high-end products

& services to its clients that enjoy shopping experiences in a relaxed and ultra-modern

environment, and likely willing to pay a premium price for the products & services. The

final two locations have been strongly recommended for pilot launch on the basis of

aforesaid factors, offering ideally excellent business situations, conditions, advantages, and

opportunities to attract a vast majority of targeted audience that abundantly resides in and

around the perimeter.

Rationale of Decision

Page: 15

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References

Page: 16

Arcadians Inc.

Chandra Vijay Dubey (822-766-275) | Jitin Sharma (824-010-417) | Kamran Mahboob (821-546-389)

Mohammad Wamique Siddiqui (823-351-416) | Sher Hassan Mazari (822-576-021) | Subhasis Pal (823-387-253)