Marketing consultancy presentation final animated

Main Problem: A lack of Customer Loyalty

Causes of Problem: 1. Perceived service quality for Sport Outlet is low as it relates

to: reliability, responsiveness, communication and competence.2. No efforts were made to develop a close relationship with

customers.3. High prices- customer dissatisfaction4. Lack of promotional activities: customer dissatisfaction.5. Limited methods in direct distribution.6. Staff lacked qualifications which is affecting their ability to

grasp training.7. Customers agreed that Sport Outlet should have a website8. Customers agreed that Sport Outlet should provide customer

loyalty cards.

Prime Marketing Consultancy Team used both primary and secondary research to highlight what is factual about Sport Outlet. Primary research consisted of S’s and P’s also the C of the SPICC analysis; in which interviews and questionnaires were conducted to obtain data. Secondary research consisted of PESTLE, SPICC and Porters in which textbooks, websites and articles were used to source information.

Objective 1: To increase the quality of service at Sport Outlet from 5% to 15% for an increase in sales over a 12 month period between January to December 2015. Objective 2: To strengthen the relationship with customers at Sport Outlet from 2% to 10% for an increase in sales over a 3 year timeframe from 2015 to 2017.

As derived from our objectives; the time-frames used are:

1. Long-term. In business accounting measures, long term can be a period of time that exceeds 12 months.

2. Short-term. Up to one year.

(www.businessdictionary.com)

Diagram 1: Ansoff Matrix According to McDonald (2007), Ansoff ’s framework is about what is sold (the ‘product), and who it is sold to (the ‘market).

http://www.mindtools.com & McDonald (2007)

Market Penetration - the firm seeks to achieve growth with existing products in their current market segments, aiming to increase its market share.

18%

28%

1%

13%7%

16%

15%

Market share for SPORT OUTLET

Sport Outlet

Francis Fashion

Fan Club

Fan Zone

Trinitrolley.com

Kenny's Sport Centre Limited

Bajnath Sports Centre

Figure: 1.0Source: Marketing Consultancy ReportSport Outlet is holds the 2nd highest market share %.

According to http://www.entrepreneur.com, 4 ways to increase market share are:

• Stay relevant through innovation.• Quick response to customers • Snap up competitors• Be more flexible

Sport Outlet does not have a website; neither do they have any social media presence. This would be explained in the latter part of this presentation.

Another issue is lack of promotional activities; this would be discussed in the latter part of this presentation.

PRODUCT: The ‘products’ are concerned with the function and features offered by a good. They also incorporate factors such as quality, design, after-sales service and branding.

PRICE: The prices charged for the products depend on a number of factors: the cost to make it, the level of profit required, competitor prices and the price consumers are willing to pay.

PLACE: South Trinidad at Gulf City mall and the other at Trincity Mall in the Northern part of Trinidad.

PROMOTION: The purpose of promotion is to create awareness in consumers or generate interest and desire to buy products. Promotion can also be used to create or change a brand image and maintain market share.

PEOPLE: Employees and management to deliver the products to the customers and a timely manner with excellent customer service.

PHYSICAL EVIDENCE: This pertains to how you, your products, or your company is presented in the market place; (layout of store, ambiance, working attire of employees, etc.)

PROCESS: The distribution channel of Sport Outlet; its how you are going to get paid, and deliver your products.

Diagram 2: Porter’s 3 Generic StrategiesSource: www.google.com

According to Michael Porter “businesses can secure a sustainable competitive advantage by adopting one of three generic strategies.”

-The Cost Leadership Strategy-The Differentiation Strategy-The Focus Strategy

Sports Outlet can be classified under a company that is most focused on quality and making product/services different and more attractive than its competitors(differentiation). This is a highly creative approach.

Recommendations:- “Specialize” in something- Share your vision- Have FUN!

Product Specializing in certain product or product line, can help differentiate the business form its competitors as it would be known for this particular product. Sport Outlet new and upcoming Nike Fuel Band SE would be presented in detailed in the latter part of this presentation.

Price The prices charged for the products depend on a number of factors: the cost to make it, the level of profit required, competitor prices and the price consumers are willing to pay.

Place South Trinidad at Gulf City mall and the other at Trincity Mall in the Northern part of Trinidad.

Promotion: Promotion that involves the customers letting them has fun while they shop and learn about the current and new products, also showing them how important they are to your business.

People: Employees and management to deliver the products to the customers and a timely manner with excellent customer service an assist in promotional activities.

Physical Evidence: This pertains to how you, your products, or your company is presented in the market place; (layout of store, ambiance, working attire of employees, how promotional items are displayed etc.)

Process promotional campaigns can assist in brining awareness to new product/products, also to help in involving customers in other promotional activities, which would help ensure customer loyalty and retention.

A successful company will find out what their customers need or want and then develop the right product and right service with the right level of quality to meet those needs now and in the future• Sport Outlet sells a variety of brands such as - Puma, Nike, Adiddas, Opel, Umbro etc. These products are described as ‘Dominant’ in the market for sportswear, shoes and accessories.

Figure: 2.0Source: Customer Satisfaction Questionnaire, 2014,quest. 1

10%

44%

8%

36%

2%

Satisfaction with the product offering at Sport Outlet from a scale of 1 to 5 (1 being the lowest and 5 being the highest)

Customer's score of 1 (%)Customer's score of 2 (%)Customer's score of 3 (%)Customer's score of 4 (%)Customers undecided

4%

78%

16%2%

Satisfaction with the quality of products at Sport Outlet from a scale of 1 to 5 (1 being the lowest and 5 being the highest)

Customer's score of 2 (%)Customer's score of 4 (%)Customer's score of 5 (%)Customers undecided



26%

58%

16%

Satisfaction with the quality of customer service at Sport Outlet from a scale of 1 to 5 (1 being the lowest and 5 being

the highest)

Customer's score of 2 (%)Customer's score of 3 (%)Customer's undecided (%)

50%

30%

20%

Credibility and Trustworthiness of Sport Outlet from a scale of 1 to 5 (1 being the lowest and 5 being the highest)

Customers agreed (%)Customers disagreed (%)Customers undecided (%)


80%

20%

Sport Outlet's understanding of customer's needs

Customer's agreed (%)Customer's disagreed (%)

Figure: 2.4Souce: Customer Satisfaction Questionnaire, 2014,quest. 6

50%

10%

20%

20%

The Dependability and Consistency of the service at Sport Outlet from a scale of 1 to 5 (1 being the lowest and 5 being

the highest)

Customer's score of 2 (%)Customer's score of 3 (%)Customer's score of 4 (%)Customers undecided (%)

Figure:2.5Source: Customer Satisfaction Questionnaire, 2014,quest. 7

Figure: 2.6Source:Customer Satisfaction Questionnaire, 2014,quest. 8

44%

56%

The Service at Sport Outlet being low-risk and free from danger

Customers agreed (%)Customers undecided (%)

48%52%

Perceived skill and knowledge of staff at Sport Outlet

Customers agreed (%)Customers disagreed (%)



40%

60%

Responsiveness of the Service at Sport Outlet


Our team has decided that Sport Outlet should have a new product which none of their competitors possess. based on the social trends from the Pestle Analysis and psychographic characteristics from the customer profile, customers are very health conscious, live healthy lifestyles and engage in sports and fitness exercises so the Nike Fuel Band SE will be very suitable to Sport Outlet's target market., Nike Fuel Band SE is a band which tracks the intensity of your daily work out; calories burnt, monitors heart rate, counts number of steps; tells the time and connects users with their friends via the Nike Fuel Band SE app

Nike Fuel Band SE

According to price satisfaction Fig 2.9 on a scale of 1-5 58% rated Price as “3” being neither satisfied not dissatisfied.

Pricing strategies Sports Outlet can adopt:

• Penetration Pricing• Skimming Pricing• Bundle Pricing

Loyalty Cards will help in price satisfaction (To be discussed in Promotion further)


34%

58%

2%

6%

Satisfaction with the price of products at Sport Outlet from a scale of 1 to 5 (1 being the lowest and 5 being the highest)

Customer's score of 2 (%)

Customer's score of 3 (%)

Custoemer's score of 4 (%)

Customers undecided (%)

•Have a website consisting of: a display of Sport Outlet’s products and details; Sport Outlet’s contact information and a virtual chatroom where customers can connect with the company, ask questions and place orders.

•Have a Whats app, Viber and Facebook profile to communicate with it’s customers. (Sport Outlet can use this media to take orders, answer questions and add and send pictures of their products to customers.)

46%

50%

4%

Easy Accessibility and Timely Delivery of the Service at Sport Outlet

Customers agreed(%)Customers disagreed(%)Customers undecided(%)



100%

Support of a Website for Sport Outlet

Customers agreed (%)Customers disagreed (%)Customers undecided (%)

58%26%

4%12%

Sport Outlet's effort to develop a close relationship with customers from a scale of 1 to 5 (1 being the lowest and

5 being the highest)

Customer's Score of 2 (%)Customer's Score of 3 (%)Customer's Score of 4 (%)Customers undecided (%)


84%

16%

Consideration and Sensitivity of staff at Sport Outlet



According to the Chartered Institute of Marketing, people is defined as – “anyone who comes into contact with your customers. They will make an impression, and that can have a profound effect - positive or negative on customer satisfaction. The reputation of your brand rests in your people’s hands. They must, therefore, be appropriately trained well motivated and have the right attitude.”Sports Outlet consists of a few minor ‘People’ issues, none of which are irreversible or cannot be fixed.

• As harsh as it sounds its crucial in any work place to have the proper attire. Sport outlet is lacking in presentation of employees. According to Holton Buggs (C.E.O and founding member of organo gold) explains that ‘you cannot sell a dream, looking like a nightmare’. This consultancy team has presented a solution that all employees should/must be equipped with logoed T shirts that consists of the brands that they sell in the store such as Adiddas, Nike, Puma etc. this will show the customers their innovated and different approach to their business.

• After looking fabulous the other important thing is for the manager to outsource a customer service professional to educate the employees on proper customer service. Sport Outlet already has an established customer service, however, it’s faulty. We recommend a trained professional to maneuver them through customer service. Our questionnaire shows that customers agree more that employees at Sport Outlet lack proper customer service

• Sport Outlet for the week has a maximum of 70 customers according to our team research. Sport outlet handles their customers accordingly with short staff. They attend to the customers after dealing with another and so on. This presents a problem as some customers become impatient because they are not being attended too. This consultancy team has decided that the workload on employees will be minimized and customer service will be maximized if Sport Outlet were to recruit more employees.

Information derived from the questionnaire conducted from customers and potential customers at Sport Outlet, indicated that; the company:

• Very low levels of promotions • Customers also believe that Sport Outlet should provide loyalty cards

1. Sport Outlet has very low levels of promotions

12% of customers ranked Sport Outlet at 1; 76% at 2; 8% at 3 and 4% of customers were undecided when rating their satisfaction with the level of promotions offered at Sport Outlet.

The Advantages of an Increase in Promotion & Advertising according http://smallbusiness.chron.com:

• Market Share• Higher Sales Growth• Increasing Value to the Customer• Improved Reputation• Innovation

12%

76%

8%4%

Satisfaction with the level of Promotions offered at Sport Outlet from a scale of 1 to 5 (1 being the lowest

and 5 being the highest)

Customer's score of 1 (%)Customer's score of 2 (%)Customer'd score of 3 (%)Customers undecided (%)


2. Customers also believe that Sport Outlet should provide loyalty cards 96% of customers agreed while 4 % disagreed that Sport Outlet should provide loyalty cards as an additional method of payment and 2 customers did not believe in it.

According to http://blog.stampsdirect.co.uk, Advantages of Loyalty Cards are:

• Customer Retention • Increase Frequent Sales• Increased Product • Increased • Know Your Customer• Customer Loyalty/Happiness

96%

4%

Suggestion of Loyalty cards at Sport Outlet



• Every $10.00 spent = 1 point on loyalty card• Therefore $100.00 spent = 10 points• Points can be accmulated and redeemed

Examples:• 1 pair of socks = 10 points• 1 pair of sneaker = 500 points and up

(depending on brand and price) • Any $200.00 T-Shirt = 200 points

Loyalty Card: Example

Additional Promotion Recommendations

3. Additional to the discounts, given, Sport Outlet can also, during carnival, after Christmas and other peak seasons, prior (approximately 6 weeks) they can also advertise on radio and television.

Discounts: 10% of sneakers and NIKE T-shirtsRadio: 15 seconds ad on 95.1 FM between the hours of 4PM to 6PM; playing 10 times per day for 42 days (6 weeks).

Television Advertisement Example for Christmas:15 seconds ad on CCNTV 6 (most viewed TV channel according to media polls), airing 5 times from 6PM to 7PM for 42 days (6 weeks).

4. They can also sponsor local events such as sporting events and competition.

Examples:• School (Primary and Secondary)

Sports: $10,000.00• Inter-col Football: $20,000.00• Community Sports: $50,000.00

5. Social Media and Website:The most effective and prominent social media sites currently are: facebook, twitter, pintrest, instagram, youtube, google + and linkedin. After their social media profiles are up and running, they can then proceed (1 year later) to build a website for their store; this would not only allow them to communicate with customers and potential customer, but also sell their products and reach a wider geographic audience.

(www.google.com)


52%44%

4%

Satisfaction with the Physical Environment and appearance of staff at Sport Outlet from a scale of 1 to 5 (1 being the lowest

and 5 being the highest)

Customer's score of 4 (%)Customer's score of 5 (%)Customers undecided (%)

A service can’t be experienced before it’s delivered. This means that choosing to use a service can be perceived as a risky business because you are buying something intangible. According to (The Chartered Institute of Marketing 2009) – “this uncertainty can be reduced by helping potential customers to ‘see’ what they are buying”. Facilities such as a clean, tidy and well-decorated reception area can also help to reassure that an organization keeps its promise. There are some physical evidence that we the consultancy team have implemented to Sports Outlet so that such a promise can be carried out.

• Increasing ambience design. Sport Outlet is a sportswear and accessories store; therefore, it should be designed and suited to customers perception of sports. Our team has decided that there should be more elaboration on sports such as posters, pictures and more than three HD televisions to play all the latest sports updates, brand commercials and games.

• More policy posters should be implanted in the environment to indicate their goals and customer information

2015($)

2016($)

2017($)

Projected Sales Cost of Sales Gross Profit

2,500,000

1,608,000

892,000

3,000,000

1,179,000

1,821,000

3,500,000

1,094,000

2,406,000

Activity Details 2015($)

2016($)

2017($)

• Loyalty Cards(redeemable at off-peak periods: Jan- Nov)

Cost of producing loyalty cards- Every $10 = 1 point- Redeemable items : sneakers, socks

and T-shirts

500,000

400,000

400,000

TV Ads - 15 seconds long on CCNTV 6, (most viewed TV channel according to media polls); airing 5 times from 6 pm to 7 pm for 42 days (6 weeks).

400,000

400,000

400,000 Radio Ads - 15 seconds long on 95.1 FM; from 4

pm to 6 p.m; playing 10 times per day for 42 days (6 weeks)

300,000

300,000

300,000

Website - Cost of website- Cost of Maintenance

30,000

5,000

5,000

Activities Details 2015($)

2016($)

2017($)

Sponsorship 1. School Sports

2. Inter-col Football

3. Community Sports

2,000

5,000

20,000

4,000

10,000

10,000

4,000

5,000

20,000

Discounts(provided at off-peak periods)

- 10% discounts- Provided on the first

month of each quarter across a 3 year period

300,000

300,000

300,000

Nike Fuel Band SE

- New product- $300 per band.

60,000

150,000

60,000

Social Media 1. Facebook2. Instagram3. Whats app4. Viber

--- -

--- -

--- -

Total : 1,617,000 1,579,000 1,494,000

Sport Outlet’s recommended mission: "To offer the highest quality products to satisfy sporting and fitness needs"

Sport Outlet’s recommended Brand Mantra: " Sports, a way of life'

Monitor and control is a process of measuring performance and taking corrective action to assure that the business is on track to meet its goals. (http://www.ndsu.edu)

How to Monitor & Control Your Business according to http://smallbusiness.chron.com • Develop a Tracking System• Coordinate Business and Marketing Plans• Make Changes When Necessary

http://www.ndsu.edu/

http://www.ndsu.edu/

http://smallbusiness.chron.com/

http://smallbusiness.chron.com/

In conclusion, for Sport Outlet to increase their market share, sales and profit; follow and apply the recommendations presented. The proper and thorough research done by this team has given insight into Sport Outlet and ideas they can carry out to increase sales and customer loyalty.

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