Concept store

Andrij Prjazevskyj

Content of presentation• Description of „Collective“• Problem statement• Defining target group• Analyzing the needs of target group• Analyze of competition and concept strenght• Suggestions for improvements• Sources

Collective• Showroom/concept store located in Copenhagen• SMS – service for members • Presenting multiple brands

Woman brand established 2006 Lifestyle brand established 1999 Woman brand established 2010

Fashion brand established 2006 Parfume brand established 2006 Lifestyle magazine established 1996

Problem statementConcept store is based on building connection with customer and providing them with pleasant expirience from shopping/using their service.Success of Concept store is driven by their ability to understand the customer needs and adjust accordingly. Therefore the main question at hand is.

How can “Collective” ensure quality experience for customers

Target group• Generation X and Y (women 20 -40 years old)

• Middle to high income level

• Simplistic attitude

• Interested in modern Scandinavian designs

• Fashion oriented and driven by ambition in life

• Partnered however rarely with children

Understand customer needs

Your opinion matters to us, please hold…

… in the meantime enjoy this 40 minute flute solo.

CBBE PyramidResonanc

e

Judgment Feeling

PerformanceImagery

Salience

Source: Keller, K.L. (2002), Strategic brand management; building, measuring and managing brand equity.

CBBE model• Performance

Service not percieved as benefitial by customer. Collection of data seems as intrusion of privacy.Notifications mostly bother and annoy customer.• Judgment

Memberships create negative image of inclusivnes. SMS - based service strikes as oposite of non-innovative.If customer involfment is low them might choose competition.• Resonance

Possibility of concept backfire at brand.Can cause declining customer base which don't want to become members.Low brand attachment for certain customers.

4 P‘s

Source: McCarthy, Jerome E. (1964). Basic Marketing. A Managerial Approach. Homewood, IL: Irwin.

Product/ServiceLow branding of service mainly through Facebook and by word of mouth.Differentiated from competitors by shear accessibility level.No special features appart SMS texting.

PriceHigh price for fashion however customer is not price sensitive.Lots of price promotions and sales for customers with high income isn’t priority.Various opinions about value of the service depending on customer involvement.

Gap model• Knowledge gap

Customer expects to have personalized approach Store provides only information on request of customer

• Standard gapCustomers can get easily annoyed by constant notifications from soteBeing reminded at all times of benefits that membership seems too enforcing

• Delivery gap Standard of unrivalled customer service promised is replaced by simple news.

• Communication gap Service promises to include customer into the development of fashion market and their store. Provides only notifications about upcoming promotions and events.

Source:Boundless. “The Gap Model.” Boundless Marketing. Boundless, 26 May. 2016.

Know the competition

„It's competition that forces companies to get out of their complacency.„

John Mackey, co-CEO of Whole foods

Points of parity and difference

Source: The principle of positioning Kevin Lane Keller and Alice Tybout, Market Leader, Issue 19, Winter 2002, pp.65

POP Elaborate replica of other

subscription based services

Webstore and showrooms used by other stores aswell

POD „Non-stop“ cotact with store

Low bureaucracy when handling complaints

Personal approach

Porters five forces• Competitive Rivalry

High ammount of similarly looking storesSuccess driven solely by the quality of their service.

• Threat of SubstitutionHigh possibility of appearance of similar digitalized conceptsCustomers likely to switch to competition.

• Threat of New EntryHigh risk of being copied by other brandsImportant to ensure constant innovation.

Source: Michael E. Porter, The five competitive forces that shape strategy (HBR – 2008)

Retail concept modelVision/MissionTake our customer to a new level through specially designed social media platform.Situation analysis low familiarity of the store existance, underdevoloped concept, high threat of competitionChecktarget group matches by fashion need, service lacks features customer desires

Concept objectivesconnect customer with store and development processesStrategic objectivesgain recognition, improve concept, outlook on competition movesTactical objectivesmarket using Omni-channel, word of mouth, evaluate service performence Operational objectivesincrease activity on social media and recall of concept among people

Source:Pelle Ivan Olsen, 25 May, 2016, The management and Economy of the Retail store – Lesson 2

Improvements

Improve our business?What a splendid idea Sir… Indeed How do we proceed?

Concept store imperatives according to James Allen‘s 3 D‘s

Bain&Company survey reveals that customers believe that only 8% of companies deliver superior expirience. This elite pursue 3 imperatives.• Design the right offers and expirience• Deliver those propositions

• Develop the capabilities to repeat and inovateSource: "Tuning In to the Voice of Your Customer," Harvard Management Update, Vol. 10, No. 10, October 2005.

Right offers• Trial membership for customers.• Meeting for active members with

disscusion, refreshments, present for attendance (e.g. Small accesory, scarf, gift card)• Opening parties for new collections

where members can bring one guest• Group chat with members –

connecting the network on semi-formal level• Customizable notifications system

Delivering propositions• Launch the service on internet based chat apps e.g. WhatsApp,

Viber, Line

• Create webpage account based system with members info and customization options

• Devise a schedule plan with number of member events throughout the 3 months period.

Source: https://play.google.com/store/apps/details?id=com.whatsapp

Repeat and innovate• Regular survey about satisfaction with store offers

• Ask active members personally for suggestions for new events/promotions

• Net promoter score for analysis of brand growth and satisfaction among customers

Sources• http://stinegoya.com/pages/about• https://www.whyred.com/about-whyred/• http://secondfemale.dk/second-female/• http://justfemale.com/just-female• http://www.escentric.com/• https://en.wikipedia.org/wiki/Wallpaper_(magazine)• http://secondfemale.com/media/igallery/l/o/lookbook_sf_spring_201

6_low_24_1.jpg • Pictures source: Internet