Retail insight - Atmospherics

London
Crown House
143-147 Regent St.
London W1B 4JB
T +44 (0)20 7478 0000
E info@liveandbreathe.co.uk
// About us
We take time to understand consumers, brands
and retailers leading to creative and compelling
communications. Our specialism is retail, rather
than a single marketing discipline, so our clients
benefit from real sector knowledge and a truly
integrated approach.
Activating consumers to physically
engage with your brand and drive sales
//
Retail insight - Atmospherics 2 Retail insight - Atmospherics 2
Introduction
//
Shopping is a favourite pastime for
us Brits; spending has become an
enjoyable release for many people,
despite rising debts and the tough
economic times. In fact, last year
(2009) UK retail sales amounted
to 257 billion larger than the
combined economies of Denmark
and Portugal!
Todays retailers have powerful
emotional and social roles to play;
they can satisfy consumers desire
to connect with oneself and others,
to escape, to indulge, to relax, to
discover, and to enhance or tailor
ones image. Most high streets or
shopping centres satisfy all of these
desires by offering a cross section
of retailers to maximise appeal.
As shoppers see others browsing
instore around them, it helps the
This thought piece celebrates real retail and shows how, despite
growing online sales, nothing beats the buzz and experience
gained from active participation in a store environment.
We explore the role of retail atmospherics as an important
differentiator from online competition and demonstrate how the
right experience aids both planned and unplanned purchasing.
In 2009 UK retail sales
amounted to 257 billion
larger than the combined
economies of Denmark
and Portugal
Retail insight - Atmospherics 3
Introduction
//
customer feel part of something
greater, and share an afnity with
others. Shoppers are able to have
a dialogue subconsciously with the
store and its environment through
the stimulation of their senses
and by picking up on a variety of
messages directed at them. A great
degree of satisfaction is gained
from real shopping because of the
intense degree of interaction that
denes the shoppers experience.
Retail insight - Atmospherics 4
//
The ght against e-tail
It is hard to see how the
internet can match the
emotional experiences
enjoyed by being in a store
These days its hard to open a trade
publication without reading about
the success of an internet company.
It would be a major oversight for
real retailers to ignore the threat
of potential online competition in
their sector. Consequently, nding
ways to provide a good reason for
shoppers to continue to make the
effort to come out of their homes
is paramount. Despite much
investment by online retailers
to improve their interface and
navigation tools, it is hard to see,
with current technology, how the
internet can match the emotional
experiences enjoyed by being in
a store. For value driven sectors,
where the shoppers needs are
purely functional (looking for the
best price) or when the shopper
requires a long tail of choice,
experience is less important.
However for most aspects of retail,
effective and emotive store design
is becoming a more vital strategy
for real retail. This can be seen
in the recent gures published by
Mintel in their June 2007 UK Store
Design report, which showed that
retailers invested 4 billion on shop
refurbishments in 2006. Last year
the gure grew by a further 4%.
Retail insight - Atmospherics 5
//
Retail atmospherics
Atmospherics Metrics
Be it shopping on the high street or in a mall, with so much choice
these days, retailers cant afford not to invest in atmospherics.
According to Levy and Weitz (1995), Atmospherics is the design of
an environment via visual communications, lighting, colours,
music and scent to stimulate customers perceptual and emotional
responses and ultimately affect their purchasing behaviour. This
way, both customer and retailer enjoy mutual benets.
// Atmospherics enhance the customer
experience in several ways
Strengthening and differentiating brand equity
Satisfng shoppers desire for experience
Helping to put the customer at ease and encouraging purchasing
Making the experience more ritualistic
Dividing the store into zones
Dominance The power balance of control a customer has within
the retail environment
Afnity The closeness a customer feels to the values and
attributes that the retail environment is projecting
Pleasure The degree of enjoyment a customer attains
within the retail environment
Arousal The level of stimulation experienced by the senses
Flow The holistic sensation a customer experiences
when acting with total involvement
Retail insight - Atmospherics 6
//
Strengthening and
differentiating brand equity
In the same way that a product
communicates through its
packaging, the retailer can project
brand equity using atmospherics.
The ner details of dcor,
materials, lighting, scent, POS,
design and sound all culminate
in creating a sensory extension
of the retail brand. Each retailer
will apply these elements in a
very unique way that reects the
brands image/identity and acts
as a communication medium
for specic messaging. Get any
element wrong and the brand
becomes sabotaged, leaving the
experience less than satisfactory
and the customer easily enticed
elsewhere.
Live & Breathes client, Bluewater,
uses piped birdsong and
waterfalls within the retail space
to encourage a sense of calm,
setting it apart from the noise
and stress normally associated
with shopping centres.
Desire for sensory
stimulation has
been hyped up with
the advances in
and accessibility of
entertainment and
technology
// Satisfying the shoppers
desire for experience
Peoples desire for sensory
stimulation has been hyped
up with the advances in, and
accessibility of, entertainment
and technology that permeates
nearly every aspect of their daily
lives. The result has been a push
in customers demands of retail
experiences and the increased
desire for immersion.
Today, even the more regular,
mundane trips such as visiting
the supermarket are shifting
towards experience-based
shopping where carefully
thought out lighting, music,
plasma screens, information
screens and aromas can
encourage browsing
or speed up traffic flow.
Bluewater uses piped birdsong
and waterfalls to encourage a
sense of calm
With consumers, especially young
adults, seeking entertainment
and stimulation in every aspect
of life, retailers will begin to
create engaging environments to
keep shoppers interested, happy
and, most importantly, in the
store longer.
David Jago Mintel Director
Introduction
//
the act itself
anticipation
remembering
Retail insight - Atmospherics 7
Retail insight - Atmospherics 8
//
Helping to put the customer at
ease and encourage purchasing
Extensive research has proven
that creating the right atmosphere
helps make the shopper relaxed
and encourages them to let
down their natural defenses. As
shoppers lose themselves, they
suspend reality, and can better
enjoy the shopping experience.
Neuroco, the London based
neuroscience company, conduct
in-store studies to measure the
impact of a brands marketing
or retail space (including
atmsopherics) through sub-
conscious responses. This
enables retailers to understand
shoppers true feelings, which
are later rationalised. Subtle
mind-scanning and eye-tracking
devices enable the researchers
to identify the exact triggers
which capture someones initial
attention and rst impression.
Real-time recordings evaluate
quantitatively the nature and
intensity of sustained attention,
emotional engagement, arousal
and emotional attraction levels
with that subject. A recent
Atmospherics can
enhance each of the
stages of the experience
study conducted by Neuroco,
at Lakeside, did just that, using
ordinary shoppers wired up
with electrodes and embedded
video glasses. The research
found that retailers with stronger
atmospherics created a greater
degree of impact on the brain
and subsequent neurological
responses. This was seen for
example when comparing
shoppers entering Starbucks to an
open coffee stall in the forecourt.
Neuroco found that the specic act
of crossing the Starbucks threshold
triggered a massive shift in mind-
state from tension to relaxation,
as well as a surge in emotional
attraction.
Selecting the right music is one
of the most important aspects
of atmospherics in putting the
customer at ease. Milliman (1982)
Unbranded coffee forecourt
Stressed state
Inside Starbucks
Relaxed state
and Yalch and Spangenberg (2000)
found that the type of music
effects the amount of time spent in
store. Familiar music makes people
feel like they have spent more time
than they actually have in-store,
whilst unfamiliar music encourages
the customer to linger.
As shoppers lose themselves, they
suspend reality, and can better
enjoy the shopping experience
// Encouraging
Ritualistic Behaviour
A habit is an activity that
happens on a regular basis
but is not something the brain
strategises about and therefore
remains in the subconscious. It
is functional and little pleasure
is derived from the experience.
Shifting a shopping trip from a
habit to a ritual promotes brand
loyalty - and frequency - because
it becomes an emotionally
charged experience and
encourages behaviour to stick.
A ritual consists of three parts
that together form a structured
and sequenced approach to
shopping. Atmospherics can
enhance each of the stages of
the experience.
Retail insight - Atmospherics 9
//
The Shopping Ritual
Before walking into a store, for both existing and new shoppers,
heightening the anticipation of the experience can be achieved with
lighting, enticing entrances or window displays and appealing music or
scent. This helps increase the arousal effect - a way of measuring how
stimulated a person is in response to the environment. Studies have
shown that the greater the level of anticipation, the greater the desire
for a person to purchase something.
Each zone has used unique ways to interact with
customers and help them navigate through a wide
selection of options
The Act Itself occurs inside the
shop, and here an element often
overlooked by academics is the
importance of service and ease
of navigation in store. Starbucks
overcome their issue of not
being able to serve customers
immediately by providing an
involving waiting experience
that means the prolonged
experience is a pleasurable and
memorable one. Whilst in the
queue, the distinct aroma of
Starbucks coffee and the uplifting
world music helps heighten
the drinkers experience and
makes the purchase much more
emotional. Using atmospherics
(cross merchandising and POP)
at this stage increases a positive
mood and can be directly linked to
impulse purchasing. Comfy sofas,
dcor and wooden oors help
encourage patrons to linger and
make the experience memorable
and enjoyable.
Remembering the act is triggered
by the stimulation of more than
one sense. Good service, branded
shopping bags and a positive exit
experience also help enhance
the nal stage of the shopping
ritual which encourages repeat
visits and brand loyalty. Next time
the shopper returns to the store,
the arousal at the anticipation
stage will be even greater and,
therefore, increase the amount of
pleasure experienced.
Heightening the anticipation
of the experience can be
achieved with lighting, enticing
entrances or window displays
and appealing music or scent
Retail insight - Atmospherics 10
//
Dividing the store into zones
For stores that have mass appeal
or sell a wide variety of products
or services, segmenting the store
into zones is extremely helpful
for the customer in directing
their search as well as using
atmospherics to treat each area
uniquely. Borders concept store
in Ann Arbor, Michigan has used
sophisticated atmospherics to
achieve its vision of becoming a
knowledge and entertainment
HQ. Throughout the store, large
illuminated drums suspend from
the ceiling and guide customers
through the space in a way that
is exploratory, intuitive, and easy.
Curiosity is further encouraged by
altering the feel of each of its main
areas - travel, cooking, wellness,
novels and childrens. Each zone
has used unique ways to interact
with customers and help them
navigate through a wide selection
of options to provide a personal
and customised recommendation.
Retail insight - Atmospherics 11
//
Cyber atmospherics
In the past few years there has
been a growing sense of urgency by
internet companies to try to imitate
some of the principles of real retail
atmospherics online. Researchers
such as Falk, Warren and Chen
(Atmospherics in the Cyber World)
and McKinney (Creating a Satisfying
Internet Shopping Experience via
atmospheric variables) have come up
with mandatory features that make
the experience more enjoyable and
humanistic. Attributes like Usability,
Navigation, Cyber-Interactivity, Trust,
System Response Time and Music
all improve the experience but cant
satisfy at the same level as real retail
on classic metrics such as pleasure,
arousal, dominance and afnity.
Its not just retailers that are investing
in atmospherics. International
manufacturers are spending the
time and energy to ensure their
brands are given the proper space
and environment and merchandised
as intended. This is reected in the
rise of Experiential Marketing and
Activation budgets by the likes of
P&G, Unilever and GSK. At Live
& Breathe, we get excited by the
untapped opportunities of using
atmospherics in other leisure
spaces too, such as gyms, service
stations, cruises, car showrooms,
vending sites, and, surprisingly,
many of the UKs shopping centres.
We understand the science behind
identifying customers needs
and linking these insights back to
create the right balance of stimuli
which is crucial for the successful
implementation of any retailers
Attributes like usability and
music improve the experience
but cant satisfy at the same
level as real retail
brand experience. We have
a track record in solid retail
marketing that delivers results,
combined with creative
thinking that enables our
clients to be at the forefront of
innovation. We are continually
seeking out new technology
and techniques to deliver ROI
and accountability.
Retail insight - Atmospherics 12
Creative Retail Marketing
Activating consumers to physically
engage with brands and drive sales.
By specialising in the retail sector as
opposed to a marketing discipline
we are able to offer an integrated
service to retailers and brands
that value our retail experience.
We balance the right amount of
planning and intuition based on 20
years of sector experience, to get to
answers quickly.
Creativity and efciency are
delivered via a business structure
built to reect the strategic,
creative, responsive and efciency
needs of the retail sector and by
splitting skills sets appropriately
across our London and Leeds
ofces. We marry the most
ground-breaking creative ideas
with efcient, detailed delivery.
In the best retail tradition, we
create work that delivers. We use
our proprietary retail planning
model to put shoppers at the heart
of every brief and to therefore
arrive at the most relevant and
commercial creative response,
whilst maintaining the right amount
of art in the science.
Live & Breathe is lead by CEO Stuart
Mitchell, Chairman Adrian Watts
and MD Nick Gray.
//
Thanks to Retail in Action for supplying photographs. www.retailinaction.com Neuroco conduct a full range of marketing and retail based studies. Their expertise combines neurological,
psychological and physiological responses at both qualitative and quantitative levels. They are also able to measure the full range of sensory responses. Their aim is to provide fresh, new and
deeper insights and evaluations into how consumers genuinely respond to the stimuli around them. www.neuroco.com
To nd out more about Live & Breathe
please contact Nick Gray
on 020 7478 0000 or email
nick.gray@liveandbreathe.co.uk
London
Crown House
143-147 Regent St.
London W1B 4JB
T +44 (0)20 7478 0000
info@liveandbreathe.co.uk
Leeds
Giles House
John Charles Way
Gelderd Road, Leeds LS12 6QA
T +44 (0)113 279 3232
info@liveandbreathe.co.uk
Copyright Live & Breathe 2010