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3 Suisses International

Group

This Retailer Analysis is on

3 Suisses International Group
France
© DataGroup

was established in 1986, and has been a
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brand since 1995.

3 Suisses International Group - France

3 Suisses International Group
France

3 Suisses International Group
CONTENTS
Indicates a dynamic link to the online data
Indicates a dynamic link to an Excel spreadsheet
Indicates a dynamic link to an Access database
Indicates a dynamic link to a PDF document
Indicates a standalone installable programme

CONTENTS............................................................................................................................................. 2
Retailer Analysis - Introduction ............................................................................................................. 20
Structure of this report ....................................................................................................................... 20
1.

The Retailer Report Analysis ................................................................................................ 20

Products ......................................................................................................................................... 20
Trading Area .................................................................................................................................. 20
Retail Competitors ......................................................................................................................... 21
Retailer ........................................................................................................................................... 22
Operations ..................................................................................................................................... 22
Buyers & Consumers ..................................................................................................................... 23
2.

The Retailer Competitive Environment ................................................................................. 24

Products ......................................................................................................................................... 24
Trading Area .................................................................................................................................. 24
Retail Competitors ......................................................................................................................... 24
Retailer Operations ........................................................................................................................ 24
Buyers & Consumers ..................................................................................................................... 24
3.

Market Research ................................................................................................................... 25

4.

Business Planning ................................................................................................................. 25

SECTION 1 ........................................................................................................................................... 26
Analysis ................................................................................................................................................. 26
Part A : Base data on the Retailer ................................................................................................... 27
Part B : Financial Data..................................................................................................................... 42
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3 Suisses International Group - France
Part B.1 : Management figures

................................................................................................ 42

Part B.2 : Balance Sheet and Management Accounts

............................................................ 43

Part C : Product Offering ................................................................................................................. 46
Main Product Lines ........................................................................................................................ 46
In-House Brands ............................................................................................................................ 46
Third Party Brands ......................................................................................................................... 46
Ancillary and Add-Value Products & Services ............................................................................... 46
Part D : Retail Locations .................................................................................................................. 47
Demographics & Lifestyle Analysis ................................................................................................ 47
Neighbourhood Analysis
Site Analytics
Footfall

........................................................................................................... 55

............................................................................................................................ 56

...................................................................................................................................... 57

Conversion Rates

..................................................................................................................... 58

Part E : Advertising, Marketing, & Events ....................................................................................... 59
Survey of Advertising Services used

....................................................................................... 59

Consumer Evaluation of Advertisements
Focus Panels

................................................................................. 62

............................................................................................................................ 62

Consumer Opinion of Advertising Effectiveness
Advertisement Evaluation Survey

...................................................................... 64

............................................................................................ 65

General Customer Surveys - Advertising Perceptions
Consumer Marketing Test

........................................................................................................ 66

Effectiveness of marketing initiatives
Corporate Marketing Evaluation
Part F : Store Experience

............................................................. 66

....................................................................................... 68

............................................................................................... 68

........................................................................................................... 69

Exterior Store Presentation

...................................................................................................... 76

Interior Store Presentation

........................................................................................................ 79

Ambience & Layout
POS & Displays
Lighting

.................................................................................................................. 81
........................................................................................................................ 82

..................................................................................................................................... 83

Store Facilities
Store Image

.......................................................................................................................... 83
.............................................................................................................................. 84

Conversion Rates

..................................................................................................................... 84

Overall Store Evaluation

........................................................................................................... 85

Store Personality Survey

.......................................................................................................... 86

Part G : In-store Customer Purchasing Behaviours ........................................................................ 87
In-store and Impulse-buying Decisions.......................................................................................... 87
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3 Suisses International Group - France
Purchasing Behaviours

............................................................................................................. 87

Consumer Store Behaviours

.................................................................................................... 88

In-store Consumer Decision Making

........................................................................................ 89

Consumer Surveys ........................................................................................................................ 90
In-Store Purchase Process and Evaluation Survey
Shopper Involvement Study
Store Entry Surveys
Store Audit

................................................................. 90

..................................................................................................... 91

.................................................................................................................. 93

................................................................................................................................ 93

Supplementary research

.......................................................................................................... 94

Part H : Customer Handling............................................................................................................. 95
First Impressions Customer Survey
Queue & Waiting handling
Interface & Dialogue

......................................................................................... 95

........................................................................................................ 95

................................................................................................................. 96

Staff Response & Attitude to Customers
Information Provided to Customers
Proficiency

.................................................................................. 96

.......................................................................................... 97

................................................................................................................................ 97

Staff Interaction with Customers
Customer Complaint Handling

.............................................................................................. 98
................................................................................................. 99

Product Returns & Refund Policy

............................................................................................. 99

Part I : Selling Strategies ............................................................................................................... 100
Stores

..................................................................................................................................... 100

Online Selling

......................................................................................................................... 100

Web Presence

........................................................................................................................ 102

Website Design

...................................................................................................................... 103

Website Information Quality

................................................................................................... 104

Website Customer Evaluation
Website Visitor Follow-up

................................................................................................ 104

....................................................................................................... 106

Website Feedback

.................................................................................................................. 107

Web Demographics

................................................................................................................ 109

Internet Shopper

..................................................................................................................... 110

Online Purchases

................................................................................................................... 114

Multi-channel Retail Distribution

............................................................................................. 117

Stand-off Online Sites .................................................................................................................. 118
Events & Promotions

.............................................................................................................. 119

Loyalty Schemes.......................................................................................................................... 119
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Social Media ................................................................................................................................ 120
Part J : Pricing & Price Points ....................................................................................................... 121
Pricing Study

.......................................................................................................................... 121

Pricing Strategies ......................................................................................................................... 123
Strategies

................................................................................................................................ 124

Price Discounting

.................................................................................................................... 124

Impact of Unsustainable Pricing .................................................................................................. 125
Stagnant Prices

...................................................................................................................... 125

Inflation ........................................................................................................................................ 126
Profit Margins ............................................................................................................................... 126
Profitability ................................................................................................................................... 126
Customers Base

..................................................................................................................... 126

Differential Value

.................................................................................................................... 127

Future Strategies ......................................................................................................................... 128
Future Pricing Strategies

........................................................................................................ 128

Preparation for Future Price Changes ......................................................................................... 128
Part K : Retailer Performance Analysis ......................................................................................... 129
Store Managers Survey

.......................................................................................................... 129

Customer Satisfaction Survey

................................................................................................ 131

Inventory Control.......................................................................................................................... 132
Inventory Balancing Act

.......................................................................................................... 132

Operational Performance Analysis
Retail Performance Intelligence

......................................................................................... 133
............................................................................................. 138

Business Performance Comparisons

..................................................................................... 138

Shopper Numbers and Quality

............................................................................................... 138

Optimised Store Performance

................................................................................................ 139

Site Potential & Floor Mapping .................................................................................................... 139
Comparative Site Performances .................................................................................................. 139
Physical Operations at individual sites ........................................................................................ 139
Technology Usage

.................................................................................................................. 140

Technology Spending & Customer Service ................................................................................. 141
e-Commerce and Cross-channel Sales ....................................................................................... 141
Development of Cross-channel Sales
Showrooming
Part L : Strategies

.................................................................................... 141

.......................................................................................................................... 142
.................................................................................................................... 145

Expertise and Specialisation ........................................................................................................ 146
Data Mining .................................................................................................................................. 146
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3 Suisses International Group - France
Retail Store Evolution .................................................................................................................. 146
Bespoke Service .......................................................................................................................... 146
Collaboration ................................................................................................................................ 147
Uniqueness .................................................................................................................................. 147
Market Leadership

.................................................................................................................. 147

Part L.1 : Corporate Retail Strategies
Operating Strategies

............................................................................................................... 148

Cash and Working Capital
Retailing Operations
Controls

...................................................................................... 148

...................................................................................................... 149

............................................................................................................... 150

.................................................................................................................................. 152

Stakeholder Management

...................................................................................................... 152

Value Preservation....................................................................................................................... 152
eCommerce & Multi-Channel Retail Strategy

......................................................................... 153

Part L.2 : Retail Marketing Strategy .............................................................................................. 154
Elements in Retail Strategy

.................................................................................................... 154

Elements in the Market Analysis

............................................................................................ 155

Part L.3 : Strategic Planning in Retailing
Overview of Strategic Retail Management
Situation Analysis

................................................................................. 159
............................................................................. 159

................................................................................................................... 160

Organisational Mission

........................................................................................................... 160

Ownership and Management Alternatives ................................................................................... 160
Goods/Service Categories

...................................................................................................... 161

Management Abilities

............................................................................................................. 161

Financial Resources

............................................................................................................... 162

Time Constraints
Objectives

.................................................................................................................... 162

............................................................................................................................... 162

Sales

....................................................................................................................................... 163

Profit

....................................................................................................................................... 163

Satisfaction of Stakeholders
Image Positioning

................................................................................................................... 164

Selection of Objectives
Checklist

................................................................................................... 163

........................................................................................................... 165

................................................................................................................................. 165

Identification of Consumer Characteristics
Overall Strategy

............................................................................. 166

...................................................................................................................... 166

Controllable Variables

............................................................................................................ 166

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3 Suisses International Group - France
Store Location

........................................................................................................................ 167

Managing the Business

.......................................................................................................... 167

Merchandise Management and Pricing
Communicating with the Customer
Uncontrollable Variables

.................................................................................. 168

........................................................................................ 168

......................................................................................................... 168

Consumers

............................................................................................................................. 169

Competition

............................................................................................................................ 169

Technology

............................................................................................................................. 169

Economic Conditions
Seasonality

.............................................................................................................. 169

............................................................................................................................. 170

Legal Restrictions

................................................................................................................... 170

Integrating Overall Strategy
Legal Constraints on Retailers
Tactical Decisions
Controls

.................................................................................................... 170
............................................................................................... 170

................................................................................................................... 172

.................................................................................................................................. 173

Feedback

................................................................................................................................ 173

Part L.4 : Recession Strategy ........................................................................................................ 174
Economic Conditions ................................................................................................................... 174
Consumption Smoothing & Product Substitution ......................................................................... 174
Managing Inventories & Costs

............................................................................................... 175

Rising Costs & Raising Prices ..................................................................................................... 177
Staff Costs
Checklist

.............................................................................................................................. 177
................................................................................................................................. 178

Part L.5 : Strategic Planning in a Global Retail Context
Planning Process and Global Retailing

.......................................................... 179

.................................................................................. 179

Opportunities and Threats in Global Retailing ............................................................................. 180
Opportunities
Threats

.......................................................................................................................... 180

.................................................................................................................................... 180

Standardisation

....................................................................................................................... 180

Factors Affecting Global Retailing Strategy

............................................................................ 181

Developed Markets

................................................................................................................. 181

Developing Markets

................................................................................................................ 181

Market Entry Decisions ................................................................................................................ 182
Part M.1 : Retailing Characteristics ............................................................................................... 183
Average Value of Sales Transaction

...................................................................................... 183

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3 Suisses International Group - France
Unplanned or Impulse Purchases
Retail Store Experience

.......................................................................................... 183

.......................................................................................................... 183

Application of Retail Strategies

.............................................................................................. 184

Application of Retail Concepts

............................................................................................... 185

Total Retail Experience

.......................................................................................................... 186

Customer Service ........................................................................................................................ 186
Relationship Retailing

............................................................................................................. 187

Part M.2 : Relationships in Retailing
Value & the Value Chain

........................................................................................ 189

........................................................................................................ 189

Value-Oriented Retailing Checklist

......................................................................................... 192

Part M.3 : Customer Relationships ................................................................................................ 193
Customer Relationships
The Customer Base
Core Customers

......................................................................................................... 193

................................................................................................................ 193
..................................................................................................................... 194

Customer Service

................................................................................................................... 195

Developing a customer service strategy
Planning individual customer services
Customer Satisfaction
Loyalty Programs

................................................................................ 196
................................................................................... 196

............................................................................................................ 197

.................................................................................................................... 197

Channel Relationships

............................................................................................................ 198

Relationship Building: Goods -v- Service Retailers

................................................................ 199

Ethics & Relationships in Retailing .............................................................................................. 200
Ethics

...................................................................................................................................... 201

Social Responsibility .................................................................................................................... 201
Consumerism

......................................................................................................................... 202

Part M.4 : Planning Aspects of Service Retailing .......................................................................... 204
Successful service retailing

.................................................................................................... 204

Performance of service retailers

............................................................................................. 204

Part N.1 : Supplemental Customer Survey Data ........................................................................... 206
Survey Respondent Demographics
Brand Survey

........................................................................................ 206

.......................................................................................................................... 209

Retail Store Brand Personality

............................................................................................... 210

Comparative Retail Store Evaluation
Retail Store Evaluation
Customer Surveys

..................................................................................... 210

........................................................................................................... 211

.................................................................................................................. 211
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Customer Satisfaction
Customer Voices

............................................................................................................ 216

.................................................................................................................... 216

Product Satisfaction and Customer Retention
Customer Satisfaction: Product
Product Ownership

....................................................................... 217

.............................................................................................. 218

................................................................................................................. 219

New Product Concept Evaluation and Pricing Study
Product Concept Test
Product Survey

............................................................. 220

............................................................................................................. 222

....................................................................................................................... 223

Product Purchases

................................................................................................................. 225

Customers’ Electrical / Electronic Product Purchases

........................................................... 227

Customers’ Fashion Demographic and Retail Clothing Shopping
Customers’ Fashion Attitudes

................................................................................................. 234

Shopping Life Style Battery

.................................................................................................... 235

Supermarket & Food Shopping Attitudes

............................................................................... 236

Supermarket & Food Store Selection Criteria
Where would you shop for...?
Service Concept Test

........................................................................ 237

................................................................................................. 238

............................................................................................................. 239

Customer service evaluation and feedback survey
Customer Service Evaluation

................................................................ 240

................................................................................................. 241

Customer Support Satisfaction Survey

.................................................................................. 245

Product or Technical Services Evaluation

.............................................................................. 246

Satisfaction: Product & Technical Documentation
Customer Services Evaluation
Website Evaluation

......................................... 233

................................................................. 248

............................................................................................... 249

................................................................................................................. 257

Online Retailer Evaluation

...................................................................................................... 258

Purchasing on the Internet

..................................................................................................... 258

Internet Habits and Uses

........................................................................................................ 260

Part N.2 : Supplemental Retail Trade Survey Data ....................................................................... 262
Business Proficiency of the Company

.................................................................................... 262

Organisational Satisfaction – Internal

..................................................................................... 263

Sales Staff Training Evaluation

.............................................................................................. 264

Store Manager’s View of Brand Perception by Customers
Retailer Survey on their e-Commerce
Company Web Building Activities

.................................................... 265

.................................................................................... 266

........................................................................................... 270

SECTION 2 ......................................................................................................................................... 273
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3 Suisses International Group - France
Competitive Environment .................................................................................................................... 273
Competitive Environment .................................................................................................................... 274
Monthly Consumer Spending .......................................................................................................... 274
Market Opportunity .......................................................................................................................... 276
Analysis of the development of the retail trade and its life cycle ................................................. 276
Added Value and Transaction Costs across the Supply Chain ................................................... 277
Retailers per 10,000 inhabitants .................................................................................................. 278
Store Revenue per Square Meter per annum (US$) ................................................................... 278
Average Revenue per Store per annum (‘000) ............................................................................ 279
Average Store Sales Area (Square Meters) ................................................................................ 279
Existing Distribution Channels ..................................................................................................... 280
New Distribution developments ................................................................................................... 281
Online Shopping – Purchases per month .................................................................................... 282
Distribution Policies & Strategies ................................................................................................. 283
Retail Trade Life Cycle and Developments ................................................................................. 286
Future Prospects and Development of the Retail Trade ....................................................... 287
City and Town analysis ......................................................................................................... 287
Wholesaler, Trade Buyer, Retailer and Store Performance Surveys .......................................... 288
Products ....................................................................................................................................... 288
Operations ................................................................................................................................... 288
Buyers & Consumers ................................................................................................................... 289
Trading Area ................................................................................................................................ 289
Competitors .................................................................................................................................. 290
Distribution Channel Surveys ............................................................................................... 290
Decision Makers Surveys ..................................................................................................... 291
Industry Performance ........................................................................................................... 291
Value by Product Sectors ..................................................................................................... 292
City / Town Market Value ..................................................................................................... 292
Consumer Attitudes ..................................................................................................................... 293
Products ....................................................................................................................................... 293
Operations ................................................................................................................................... 293
Buyers & Consumers ................................................................................................................... 294
Trading Area ................................................................................................................................ 294
Competitors .................................................................................................................................. 295
Consumer Surveys ............................................................................................................... 295
Industry Performance ........................................................................................................... 296
Competitive Factors ......................................................................................................................... 297
Retail Brands ............................................................................................................................... 297
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3 Suisses International Group - France
Brands Price Differentials ............................................................................................................ 298
Product Price Differentials ........................................................................................................... 299
Product Value Positioning ............................................................................................................... 300
Product Pricing ................................................................................................................................ 301
Product Quality ................................................................................................................................ 302
Product Specifications ..................................................................................................................... 303
Product Target Audiences ............................................................................................................... 304
Product Volumes ............................................................................................................................. 305
Product Utility .................................................................................................................................. 306
Product Maintenance ....................................................................................................................... 307
Product Merchandising .................................................................................................................... 308
Product Advertising ......................................................................................................................... 309
Brand Positioning Tactics & Strategy .............................................................................................. 310
Current Tactical Brand Model ...................................................................................................... 310
Strategic Brand Objectives .......................................................................................................... 311
Functional Positioning - Symbolic Positioning - Experiential Positioning .................................... 312
Customer Value Propositioning ................................................................................................... 313
Value Concept & Positioning ....................................................................................................... 314
Brand Differentiation Propositions ............................................................................................... 315
Key Selling Messages.................................................................................................................. 316
Communications Tactics .............................................................................................................. 317
Advertising Tactics ....................................................................................................................... 318
Media & PR Tactics ..................................................................................................................... 319
Web & Online Tactics .................................................................................................................. 320
Point of Sale Tactics .................................................................................................................... 321
Merchandising .............................................................................................................................. 322
Product Display ............................................................................................................................ 323
Market Entry Management Factors ................................................................................................. 324
Distribution ................................................................................................................................... 324
Retail Level .................................................................................................................................. 324
Brand Competition ....................................................................................................................... 325
Value ............................................................................................................................................ 325
Location ....................................................................................................................................... 326
Supply Chain ................................................................................................................................ 326
Nature of Competition .................................................................................................................. 327
Supplier Price Differentials .......................................................................................................... 327
Retailer Reaction ......................................................................................................................... 328
Supplier Reaction......................................................................................................................... 329
Conclusion ................................................................................................................................... 329
Distributors – Market Entry choices ............................................................................................. 332
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3 Suisses International Group - France
Retail Presence – Market Entry choices ...................................................................................... 333
Distribution Channel: Advantages – Disadvantages ................................................................... 334
Market Entry options for Domestic Brands ...................................................................................... 335
Market Entry options for Established or Global Brands .................................................................. 336
Market Entry Features ................................................................................................................. 337
Start-up Costs .................................................................................................................................. 338
Start-up Costs, Initial Investment and Product Launch Balance sheet ....................................... 338
Inventory Costs ............................................................................................................................ 338
Brand Store Start-up Costs .......................................................................................................... 339
Independent Store Start-up Costs ............................................................................................... 340
Brand In-Store Start-up Costs ..................................................................................................... 341
Distributor / Exclusive Wholesaler Sign-up Costs ....................................................................... 342
Start Times Weeks: Brand Store ................................................................................................. 343
Start Times Weeks: Independent Store ....................................................................................... 344
Start Times Weeks: Distributor / Exclusive Wholesaler ............................................................... 345
Economies of Scale with multiple Stores ..................................................................................... 346
Cash Flow, Profit & Loss, Balance Sheet, Project Financial Analysis ............................................ 347
12 Months Cash Flow Analysis .................................................................................................... 347
First 12 months and First 3 years Profit & loss Account .............................................................. 348
1-7 Years Balance Sheet ............................................................................................................. 349
10 Years Project Financial Analysis ............................................................................................ 350
SWOT Analysis ............................................................................................................................... 351
SWOT analysis by type of Market Entry ...................................................................................... 351
Entry via Company Owned Retail Stores .................................................................................... 351
Entry via Domestic Retail Joint Venture ...................................................................................... 351
Entry via National Franchise Licensee ........................................................................................ 352
Entry via Intensive Individual Franchising.................................................................................... 352
Entry via Exclusive National Distributor ....................................................................................... 353
Entry via Intensive National Distribution / Wholesaling ............................................................... 353
Competitive Analysis ....................................................................................................................... 354
Retail Brands ............................................................................................................................... 354
Market Penetration Prospects ......................................................................................................... 355
Advancing into the target markets ............................................................................................... 355
Brand Concept ............................................................................................................................. 356
Brand Equity ................................................................................................................................ 356
Customer Based Brand Equity .................................................................................................... 357
Brand Knowledge......................................................................................................................... 357
Substantial Brand Knowledge & Awareness – All Brands ........................................................... 357
Brand Equity Model...................................................................................................................... 358
Substantial Brand Loyalty – All Brands........................................................................................ 359
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3 Suisses International Group - France
Substantial Brand Quality –v Price Perceptions – All Brands ..................................................... 360
Brand Knowledge Components ................................................................................................... 361
Brand Resonance Components ................................................................................................... 361
Brand Resonance ........................................................................................................................ 362
Qualitative Brand Research ......................................................................................................... 364
Qualitative Brand Identifiers ......................................................................................................... 364
Marketing communication applied to branded products .............................................................. 365
The Brand Image in the marketing communication process ....................................................... 366
The Store Image in the marketing communication process ........................................................ 366
Consumer confidence and consumer markets ............................................................................ 367
Consumer Confidence Index ....................................................................................................... 367
Consumer Confidence ................................................................................................................. 367
Consumer Attitudes and Perceptions which impact Brands ........................................................ 369
% Usage & Purpose of purchases ............................................................................................... 370
Celebrity endorsement ................................................................................................................. 371
Relative Ranking Criteria and Consumer Habits for Product Purchases .................................... 372
Brand Selection ............................................................................................................................ 372
Price over Brand Loyalty amongst Buyers................................................................................... 373
Purchase Drivers for Buyers ........................................................................................................ 373
Domestic Brands -v- Foreign Brands ........................................................................................... 374
What do consumers want in a branded product? ........................................................................ 375
What can National brands do to counter the established Global brands? .................................. 377
How can National brands do better than the Global brands? ...................................................... 378
Novel marketing methods to distinguish oneself from the competition ....................................... 379
Unique Brand Offerings ............................................................................................................... 380
New and Untapped Market Demand ........................................................................................... 381
Niche Markets .............................................................................................................................. 381
Brand Superiority ......................................................................................................................... 382
Building Heritage Brands ............................................................................................................. 382
Brand Resonance ........................................................................................................................ 383
Brand Persistence ........................................................................................................................ 384
Brand Development Opportunities ............................................................................................... 386
Industry Checklist......................................................................................................................... 387
Product Design and Merchandising ............................................................................................. 387
Performance Indicators ................................................................................................................ 388
Application of Design – Performance Factors ............................................................................. 389
Industry Performance Indicators .................................................................................................. 389
Performance Indicators for brand selection, development, and distribution ................................ 390
Performance Indicators for merchandising strategies ................................................................. 391
Market Strategy Insight .................................................................................................................... 392
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3 Suisses International Group - France
Market Entry Possibilities and Criteria ......................................................................................... 392
Market Entry Difficulties ............................................................................................................... 392
Market Potential ........................................................................................................................... 393
Financial Potential........................................................................................................................ 394
Consumer Potential & Attitudes ................................................................................................... 395
Relative Return on Investment by Market Area : 1-14 years ....................................................... 396
Relative Return on Investment by Product Category .................................................................. 397
Relative Return on Investment by market for Product Groups .................................................... 397
Opinions of the trade and retail experts on introducing new brands ........................................... 398
SECTION 3 ......................................................................................................................................... 400
Market Research ................................................................................................................................. 400
Markets................................................................................................................................................ 400
MARKET RESEARCH COVERAGE ................................................................................................... 401
Markets & Products covered ........................................................................................................... 401
Product Sectors ........................................................................................................................... 401
Survey Data ..................................................................................................................................... 402
Consumer Surveys

................................................................................................................ 402

Distribution Channel Surveys
Decision Makers Surveys
Industry Performance

................................................................................................ 403
...................................................................................................... 403

............................................................................................................ 403

Products ....................................................................................................................................... 404
Operations ................................................................................................................................... 404
Buyers & Consumers ................................................................................................................... 405
Trading Area ................................................................................................................................ 405
Retail Competitors ....................................................................................................................... 406
Geographic Coverage ..................................................................................................................... 407
Financial data

............................................................................................................................ 407

Financial Data Scenarios ............................................................................................................. 407
Financial Margins & Ratios Data Scenarios ................................................................................ 407
Market Research ............................................................................................................................. 408
General Contents ............................................................................................................................ 408
Market Research Report Table of Contents .................................................................................... 409
Core National Database

Open the Core Database here ....................................................... 409

Sections ........................................................................................................................................... 409
Preface ................................................................................................................................ 409
Chapters .............................................................................................................................. 409
Databases ........................................................................................................................... 409
Financials ............................................................................................................................ 409
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3 Suisses International Group - France
Industry ................................................................................................................................ 409
Markets ................................................................................................................................ 409
Products .............................................................................................................................. 409
Grids .................................................................................................................................... 409
Reference ............................................................................................................................ 409
Contents .............................................................................................................................. 409
Legend ................................................................................................................................. 409
Cities .................................................................................................................................... 409
Countries ............................................................................................................................. 409
Chapters .......................................................................................................................................... 410
Chapter 1 .................................................................................................................................... 410
ADMINISTRATION .............................................................................................................. 410
Chapter 2 .................................................................................................................................... 410
ADVERTISING .................................................................................................................... 410
Chapter 3 .................................................................................................................................... 410
BUYERS – COMMERCIAL OPERATIONS......................................................................... 410
Chapter 4 .................................................................................................................................... 410
BUYERS – COMPETITORS ............................................................................................... 410
Chapter 5 .................................................................................................................................... 410
BUYERS – MAJOR CITY .................................................................................................... 410
Chapter 6 .................................................................................................................................... 410
BUYERS – PRODUCTS...................................................................................................... 410
Chapter 7 .................................................................................................................................... 410
BUYERS – TRADE CELL.................................................................................................... 410
Chapter 8 .................................................................................................................................... 410
COMPETITIVE INDUSTRY ANALYSIS .............................................................................. 410
Chapter 9 .................................................................................................................................... 410
COMPETITOR ANALYSIS .................................................................................................. 410
Chapter 10 ................................................................................................................................... 410
COUNTRY FOCUS ............................................................................................................. 410
Chapter 11 ................................................................................................................................... 410
DISTRIBUTION ................................................................................................................... 410
Chapter 12 ................................................................................................................................... 410
FINANCIAL - BUSINESS DECISION SCENARIOS ........................................................... 410
Chapter 13 ................................................................................................................................... 410
FINANCIAL - CAPITAL COSTS FINANCIAL SCENARIOS ................................................ 410

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3 Suisses International Group - France
Chapter 14 ................................................................................................................................... 410
FINANCIAL - CASHFLOW OPTION SCENARIOS ............................................................. 410
Chapter 15 ................................................................................................................................... 410
FINANCIAL - COST STRUCTURE SCENARIOS ............................................................... 410
Chapter 16 ................................................................................................................................... 410
FINANCIAL - HISTORIC INDUSTRY BALANCE SHEET ................................................... 410
Chapter 17 ................................................................................................................................... 410
FINANCIAL - HISTORIC MARKETING COSTS & MARGINS ............................................ 410
Chapter 18 ................................................................................................................................... 410
FINANCIAL - INVESTMENT + COST REDUCTION SCENARIOS .................................... 410
Chapter 19 ................................................................................................................................... 410
FINANCIAL - MARKET CLIMATE SCENARIOS................................................................. 410
Chapter 20 ................................................................................................................................... 410
FINANCIAL – MARKETING COSTS ................................................................................... 410
Chapter 21 ................................................................................................................................... 410
FINANCIAL - MARKETING EXPENDITURE SCENARIOS ................................................ 410
Chapter 22 ................................................................................................................................... 410
FINANCIAL – MARKETING MARGINS .............................................................................. 410
Chapter 23 ................................................................................................................................... 410
FINANCIAL - STRATEGIC OPTIONS SCENARIOS .......................................................... 410
Chapter 24 ................................................................................................................................... 410
FINANCIAL - SURVIVAL SCENARIOS .............................................................................. 410
Chapter 25 ................................................................................................................................... 411
FINANCIAL - TACTICAL OPTIONS SCENARIOS ............................................................. 411
Chapter 26 ................................................................................................................................... 411
GEOGRAPHIC DATA.......................................................................................................... 411
Chapter 27 ................................................................................................................................... 411
INDUSTRY - NORMS.......................................................................................................... 411
Chapter 28 ................................................................................................................................... 411
MAJOR CITY MARKET ANALYSIS .................................................................................... 411
Chapter 29 ................................................................................................................................... 411
MARKET CAPITAL ACCESS SCENARIOS ....................................................................... 411
Chapter 30 ................................................................................................................................... 411
MARKET CASHFLOW SCENARIOS .................................................................................. 411
Chapter 31 ................................................................................................................................... 411
MARKET ECONOMIC CLIMATE SCENARIOS .................................................................. 411
Chapter 32 ................................................................................................................................... 411
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3 Suisses International Group - France
MARKET INVESTMENT + COSTS SCENARIOS .............................................................. 411
Chapter 33 ................................................................................................................................... 411
MARKET MARKETING EXPENDITURE SCENARIOS ...................................................... 411
Chapter 34 ................................................................................................................................... 411
MARKET RISK SCENARIOS .............................................................................................. 411
Chapter 35 ................................................................................................................................... 411
MARKET STRATEGIC OPTION SCENARIOS ................................................................... 411
Chapter 36 ................................................................................................................................... 411
MARKET SURVIVAL OPTION SCENARIOS...................................................................... 411
Chapter 37 ................................................................................................................................... 411
MARKET TACTICAL OPTION SCENARIOS ...................................................................... 411
Chapter 38 ................................................................................................................................... 411
MARKETING EXPENDITURE -v- MARKET SHARE .......................................................... 411
Chapter 39 ................................................................................................................................... 411
MARKETING STRATEGY DEVELOPMENT ...................................................................... 411
Chapter 40 ................................................................................................................................... 411
MARKETS ........................................................................................................................... 411
Chapter 41 ................................................................................................................................... 411
OPERATIONAL ANALYSIS ................................................................................................ 411
Chapter 42 ................................................................................................................................... 411
OVERSEAS DEVELOPMENT ............................................................................................ 411
Chapter 43 ................................................................................................................................... 411
PERSONNEL MANAGEMENT ........................................................................................... 411
Chapter 44 ................................................................................................................................... 411
PHYSICAL DISTRIBUTION + CUSTOMER HANDLING .................................................... 411
Chapter 45 ................................................................................................................................... 411
PRICING .............................................................................................................................. 411
Chapter 46 ................................................................................................................................... 411
PROCESS + ORDER HANDLING ...................................................................................... 411
Chapter 47 ................................................................................................................................... 411
PRODUCT ANALYSIS ........................................................................................................ 411
Chapter 48 ................................................................................................................................... 411
PRODUCT DEVELOPMENT .............................................................................................. 411
Chapter 49 ................................................................................................................................... 411
PRODUCT MARKETING FACTORS .................................................................................. 411
Chapter 50 ................................................................................................................................... 411
PRODUCT MIX ................................................................................................................... 411
17

3 Suisses International Group - France
Chapter 51 ................................................................................................................................... 412
PRODUCT SUMMARY ....................................................................................................... 412
Chapter 52 ................................................................................................................................... 412
PROFIT RISK SCENARIOS ................................................................................................ 412
Chapter 53 ................................................................................................................................... 412
PROMOTIONAL MIX ........................................................................................................... 412
Chapter 54 ................................................................................................................................... 412
SALESFORCE DECISIONS ............................................................................................... 412
Chapter 55 ................................................................................................................................... 412
SALES PROMOTION .......................................................................................................... 412
Chapter 56 ................................................................................................................................... 412
SURVEYS ........................................................................................................................... 412
Chapter 57 ................................................................................................................................... 412
TARGETS - PRODUCT + MARKET .................................................................................. 412
Chapter 58 ................................................................................................................................... 412
TECHNOLOGY ................................................................................................................... 412
Chapter 59 ................................................................................................................................... 412
TRADE CELL ANALYSIS .................................................................................................... 412
Chapter 60 ................................................................................................................................... 412
URBAN COMPETITION ...................................................................................................... 412
Chapter 61 ................................................................................................................................... 412
TOWNS - FINANCIAL ......................................................................................................... 412
Chapter 62 ................................................................................................................................... 412
TOWNS - INDUSTRY.......................................................................................................... 412
Chapter 63 ................................................................................................................................... 412
TOWNS - MARKET ............................................................................................................. 412
SECTION 4 ......................................................................................................................................... 413
Business Planning ............................................................................................................................... 413
BUSINESS PLANNING ....................................................................................................................... 414
Checklist .......................................................................................................................................... 414
Checklist implementation

..................................................................................................... 417

Advancing your Project ................................................................................................................ 417
Cashflow

.................................................................................................................................... 418

The Business Plan Programme

............................................................................................... 419

Installing the Business Plan Programme ..................................................................................... 420
Retailer Analysis Report ...................................................................................................................... 427
Methodology .................................................................................................................................... 427
18

3 Suisses International Group - France
Presentation .................................................................................................................................... 427
After-Sales Service & Client Support .............................................................................................. 428
Real Time Support ....................................................................................................................... 429
Resource Webs -v- Dedicated sites ............................................................................................ 429
Product Level ............................................................................................................................... 429
Data Product levels ...................................................................................................................... 430
Getting Started with the Core Database ...................................................................................... 431
Using the data .............................................................................................................................. 431
Toolkits ......................................................................................................................................... 431
Report Cost ..................................................................................................................................... 434
Retailer Report ............................................................................................................................. 434
Report Pricing .............................................................................................................................. 434
About DataGroup ............................................................................................................................. 435
DataGroup Clients ........................................................................................................................... 435

was established in 1986, and has been a

brand since 1995.

The Retailer Analysis of 3 Suisses International Group.
Target Country: France
Ref: 7699899607075

Published by The DataGroup Stiftung, Vaduz, Liechtenstein. Copyright © DataGroup Stiftung.

19

3 Suisses International Group - France

Retailer Analysis - Introduction
Structure of this report
This document is constructed as a PDF file which links to a large number of online documents, Excel
spreadsheets and Access databases.
This document consists of four sections:-

1. The Retailer Report Analysis
a. Analysis of the 15 most important Product Groups
These represent the most important Product Groups or Product Lines for 3 Suisses
International Group in Revenue terms.

Products
The Product Groups (1 to 15) data is shown in the tables as
Product Group #1 to Product Group #15

b. Analysis of the 15 most important Trading Areas:

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

France
Île-de-France
Rhône-Alpes
Provence-Alpes-Côte-d'Azur
Nord-Pas-de-Calais
Pays-de-la-Loire
Aquitaine
Midi-Pyrénées
Nord
Languedoc-Roussillon
Centre
Lorraine
Paris
Bouches-du-Rhône
Picardie

Trading Area
The Trading Areas (1 to 15) data is shown in the tables as
Trade Area #1 to Trade Area #15
In addition data is given for all the significant Towns and Cities in France, a list of
these can found here:http://www.dg-di.eu/BASE_FOLDERS/World_Cities/FR.html

20

3 Suisses International Group - France

c.

Analysis of the 15 most important Competitors
The algorithm ranks Competitors according to those which represent the most
significant threat to 3 Suisses International Group, when filtered for the following
criteria:i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.
xi.
xii.
xiii.
xiv.
xv.

Chief Overall Market Competitor
Main National Market Competitor
Main Regional / Local Market Competitor
Main Trading Area Market Competitor
Main National Product Superiority Competitor
Main Trading Area Product Superiority Competitor
Main National Price Competition Competitor
Main Trade Area Price Competition Competitor
Main National Financial Strength Competitor
Main Trading Area Financial Strength Competitor
Main National Customer Satisfaction Competitor
Main Trading Area Customer Satisfaction Competitor
Main National Marketing Aggression Competitor
Main Trading Area Marketing Aggression Competitor
Main New Product Development Competitor

In this report the Retail Competitors are identified as individual
companies. A list is not shown because the significance of the
Competitors change on a seasonal basis and thus the final list is
produced dynamically when the database is output for the
specific order.

Retail
Competitors
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

21

3 Suisses International Group - France

d. Analysis of the 15 most important Retailer Operations
The algorithm ranks the Retail Operations which represent the most significant for 3
Suisses International Group:1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

Brand Management
Product Management
Marketing & Selling Activity
Store Presentation & Merchandising
Product Offering Specifications & Characteristics
Product Quality Control
Design Research & Development
Customer Handling
Product Sourcing & Control
Financial Controls
Staff Training / Control & Relations
Product Throughput Capacity & Control
Supply System Control & Development
Distribution Control
Product Handling Systems & IT

Retailer
Operations
The Retailer Operations (1 to 15) data is shown in the tables as:
Operations #1 to Operations #15

22

3 Suisses International Group - France

e. Analysis of the 15 most important Customer / Buyer Profiles
The algorithm ranks the Customer Profiles which represent the most significant for 3
Suisses International Group:1. Wholesalers
2. Trade Buyers
3. Retailers
4. Consumers
5. Consumers Age: <19
6. Consumers Age: 19-24
7. Consumers Age: 25-34
8. Consumers Age: 35-44
9. Consumers Age: 55-54
10. Consumers Age: 55-64
11. Consumers Age: 65+
12. Consumers Social Group: AB
13. Consumers Social Group: C1
14. Consumers Social Group: C2
15. Consumers Social Group: DE

Buyers &
Consumers
The Buyers & Consumers (1 to 15) data is shown in the tables as:
Buyers #1 to Buyers #15

f.

Analysis of the internal and external issues which affect 3 Suisses International
Group

The Analysis of 3 Suisses International Group consists of about 23 Parts or chapters with over 3600
research issues which have been investigated through Surveys of the Staff of 3 Suisses International
Group, the Customers, the Competitive companies, Trade Suppliers, Logistics companies, Trade
Buyers & Decision Makers, Trade & Industry Experts, Banks & Financial Institutions, the Regulatory
Authorities, and other sources.

23

3 Suisses International Group - France

2. The Retailer Competitive Environment
a. Analysis of the 15 most important Product Groups

Products Product Group #1 to Product Group #15
b. Analysis of the 15 most important Trading Areas

Trading Area Trade Area #1 to Trade Area #15
c.

Analysis of the 15 most important Competitors

Retail Competitors Competitors #1 to Competitors #15
d. Analysis of the 15 most important Retail Operations

Retailer Operations Operations #1 to Operations #15
e. Analysis of the 15 most important Customer / Buyer Profiles

Buyers & Consumers Buyers #1 to Buyers #15
The Competitive Environment is analysed in Product, Market, Competitive, Operational, and
Consumer terms.
The Competitive Environment for 3 Suisses International Group consists of some 170 issues which
have been investigated through Surveys of the Staff of 3 Suisses International Group, the Customers,
the Competitive companies, Trade Suppliers, Logistics companies, Trade Buyers & Decision Makers,
Trade & Industry Experts, Banks & Financial Institutions, the Regulatory Authorities, and other
sources.

24

3 Suisses International Group - France

3. Market Research
The market research is Country specific, and provides data on all the Cities and Towns in the
home country: France
For a list of Cities and Towns:
http://www.dg-di.eu/BASE_FOLDERS/World_Cities/FR.html

The report provides historic, current and forecast Market data, Financial data for the retailers, Industry
data for the trade, Survey data, and a large body of market research for each of the France Cities and
major towns.
World Market Research data (on potential overseas expansion opportunities for 3 Suisses
International Group) is available as part of the After-Sales Service.

4. Business Planning
This section provided Business Planning software and utilities.

To make the data handling easier, the documents and databases are also
supplied on DVD or Hard Disk Drive which can then be used as a standalone
data source or, if required, manipulated and correlated with business planning
or statistical software.
The breakdowns of Product Groups, Trading Areas, Competitors, Retail Operations, and Customer /
Buyer Profiles are limited to 15 in each group because the Excel spreadsheets frequently analyse the
correlation of data between 2 groups of 15. Because of the general limitation of record field numbers
(generally 255 fields) one can only produce a 15 x 15 matrix.

25

SECTION 1

Analysis
3 Suisses International Group

3 Suisses International Group - France

3 Suisses International Group
This report specifically refers to 3 Suisses International Group
This report specifically refers to the base country: France

Part A : Base data on the Retailer
3 Suisses International Group
Base data on 3 Suisses International Group: Part_A
Key Personnel:
1. Chairman
2. Chief Executive
3. Directors
4. Executives

Corporate Summary:
5. Company Description
6. Company History
7. Legal Entity & Ownership
8. Company Facilities
9. Company Key Assets
10. Mainline product / service
11. Product / services provided
12. Parent Company
13. Bankers
14. Year established
15. Current employees
16. Issued capital
17. Shareholders
18. Last published turnover
19. Subsidiaries
20. Associated companies
21. Companies represented
22. Agencies
23. Physical processing locations
24. Capital investment
25. Advertising expenditure
26. Advertising media
27. Advertising posture
28. Sales promotion activity
29. Method of selling
30. Distribution
31. Distribution network
32. Use of distribution channels

Corporate Observations:
33. Stores
27

3 Suisses International Group - France
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.

Store Brands
Store Sales Channels
Products Carried & Services Offered
Consumer Features & Benefits
Current Market Analysis
Competition
Competitive Advantage
Target Markets
Target Customers
Current Strategy & Implementation
Current Management
Current Financial Plan
Investment Fund Sources & Use of Funds
Future Target Customers
Future Retail Trends
Future Market Analysis
Projected Market Size
Planned Products & Services
Development Plans

Swot Analysis:
53. Strengths
54. Weaknesses
55. Opportunities
56. Threats
Future Strategy Planning & Implementation:
57. Philosophy
58. Product Development
59. Internet Strategy
60. Marketing Strategy
61. Sales Strategy
62. Strategic Alliances
63. Operations
Goals:
64.
65.
66.
67.
68.
69.
70.
71.

Renovating premises, stocking, staff hiring and marketing
Sponsorship & Hosting events
Penetrate and raise awareness in the targeted consumer market
Achieving a higher profit margin
Building the customer base
Generate repeat and referral sales
Expansion potential
Reputation as a quality retailer

Exit Strategies
Management:
72. Organisational Structure
73. Leadership
74. Staff Members
Financial Plans:
75. Finance Requirements
76. Use of Funds
77. Cash Flow
78. Balance Sheet Topics
79. Financial Assumptions
28

3 Suisses International Group - France

The above topics are covered as brief or concise elements to give an impression of the topic based
on trade and industry analyses. The body of the report provides the detail.
The Corporate Observations section is a concise headlining, or sound bites, of certain issues which
concern the retailer. In fact the Observations are based the analyses of several datasets which have
then been distilled into as few words as possible. In order to understand the data behind these
observations readers should consider the datasets shown below.

As an explanation of the topics covered by the above items:-

1. Company Description
A brief description of the activities of the company.
2. Company History
The corporate milestones for the company.
3. Legal Entity & Ownership

Listed, Private, Family.

4. Company Facilities



Retail Locations
Distribution
Property Portfolio
Production

5. Company Key Assets

















Brands
Cashflow position
Copyrights
Customer Base
Customer Relations
Designers
Franchisees
Internet Presence
Investments
Liquidity
Locations
Management
Market Share
Patents
Product Range
Staff Abilities
Trademarks
Value Proposition

6. Stores

Number and location of stores

7. Store Brands

Retail brands of the stores

8. Store Sales Channels
29

3 Suisses International Group - France

Company owned, Franchises, In-store departments, Joint-Ventures

9. Products Carried & Services Offered

Product Ranges of goods carried and services offered

10. Consumer Features & Benefits







Product Range
Product Value
Product Quality
Product Design
Product Fashion
Store service
Payment options
Customer services

11. Current Market Analysis

Dynamic, Increasing, Stagnant, Falling, Deteriorating

12. Competition

Very aggressive, Aggressive, Equivalent, Benign, Ineffective

13. Competitive Advantage

Value Proposition, Price, Quality, Store Locations, Customer Loyalty, Customer Services

14. Target Markets

Local, Regional, National, International

15. Target Customers

Male, Female. Under 18, Youth Trendy, Younger, Professional, General demographic,
Mature, Older. Discount, Mid-priced, Upscale, Luxury

16. Current Strategy & Implementation

Very Effective, Effective, Consistent, Inconsistent, Ineffective

17. Current Management

Dynamic, Professional, Average, Lacking, Ineffective

18. Current Financial Plan

Dynamic, Productive, Consistent, Lacking, Unsuccessful

19. Investment Fund Sources & Use of Funds

Public, Institutional, Bank, Private. Use of Funds: Exceptional, Productive, Mediocre, Illadvised, Poor.

20. Future Target Customers

New Customer Bases available. No New Customer Bases available.

21. Future Retail Trends

Dynamic, Advancing, Stable, Challenging, In decline

22. Future Market Analysis

Dynamic, Progressive, Static, Difficult, Collapsing

23. Projected Market Size

Significant increases, Increasing, Stable, Diminishing, Significant decreases

30

3 Suisses International Group - France

24. Planned Products & Services

Substantial New Product/Service Offerings, Some New Product/Service Offerings, No New
Product/Service Offerings, Reduction in Product/Service Offerings. No comment

25. Development Plans

Dynamic, Advanced, Progressive, Static, None

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3 Suisses International Group - France

SWOT ANALYSIS:
26. Strengths tested:













































Advertising Effectiveness
Brand
Business Alliances
Business Innovation
Competition
Consumer base
Cost advantages
Culture
Customer Service
Direct delivery capability
Economies of Scale
Excellent customer service
Experience and understanding of the Retail industry
Experience in the field
Financial Resources
Future Changes available
Good reputation among customers
Good Staff Training
Good Website
Industry knowledge
Innovative sales techniques
Intangible Strengths
Large administration component
Management
Market Lead
Market Location
Market Share
Personnel
Product Uniqueness
Proprietary knowledge
Relationship marketing
Relationship with customers
Relationship with employees
Relationships with suppliers
Reputation
Shopping experience and customer service
Sole supply agreements
Standards
Store Fitting & Systems good quality
Store Locations
Strong Brands
Superior product performance vs. competitors
Technology
Training
Unique brands
Use of new technology

32

3 Suisses International Group - France

27. Weaknesses analysed:
































Customer service staff needs training
Future Changes difficult
High overall unit cost relative to competitors
Inferior technology
Insufficient financial resources
Intangible Weaknesses
Lack of following-up procedures
Lack industry knowledge
Lack innovation
Limited expansion potential
Limited industry experience
Limited industry knowledge
Limited Product Range
Limited Stocks
Low Market Share
Low R&D
Niche markets
Poor Customers Relations
Poor Employees Relations
Poor Management
Poor Marketing
Poor reputation among customers
Poor Suppliers Relations
Poor Website
Product line too narrow
Store brand unknown
Small Economies of Scale
Small market presence
Small store sizes
Store fittings, plant and equipment old or outdated
Untested markets
Weak Brands
Weak image

28. Opportunities evaluated:

















Backward integration in the supply chain
Better Training
Better Website
Competitive opportunities
Customer Service
Database Assets
Diversification
E-commerce
Establish a product line
Expand Customer Bases
Expand Customer Catchment areas
Expand Customer Offerings
Expand Product Range
Expand Supply Sources
Favourable cultural shifts
Favourable economic outlook
Favourable regulations
Import / export opportunities
33

3 Suisses International Group - France
















Increased geographic coverage
Internet sales
Local competitors have worse products
Local Marketing
Loosening of regulations
Market growth
Multi-channel marketing
New demographics available
New market niche
New Market opportunities
New Products
New technologies
Online presence
Outstanding shopping experience will lead to repeat business
Removal of international trade barriers
Specific Markets
Use of new technology

29. Threats evaluated:





























Buyers changing
Change in market demand
Changes in demographics
Changing consumer interests
Changing fashion trends
Cost and effectiveness of marketing to target markets
Currency fluctuations
Customers’ power growing
Direct competition
Economic climate
Emergence of substitute products
Environmental effects
Fixed Costs
Foreign exchange rates
Indirect Competition
Local conditions
Location
Loss of control of product prices
Low cost competitive products
New regulations
New retail competitors
Obsolete product range
Pressure on margins
Product substitution
Regulations
Shifts in consumer tastes
Slow or Declining market growth
Substitute product market
Suppliers’ power growing
Technology

34

3 Suisses International Group - France

FUTURE STRATEGY PLANNING & IMPLEMENTATION
30. Philosophy
Contract theory / Stakeholder theory / Business as property

Contract theory:
Business contract theory holds that a business is a community of participants organized around a
common purpose. These participants have legitimate interests in how the business is conducted
and, therefore, they have legitimate rights over its affairs. Most contract theorists see the enterprise
being run by employees and managers as a kind of representative democracy.

Stakeholder theory:
Stakeholder theorists believe that people who have legitimate interests in a business also ought to
have a voice in how the business is conducted. The obvious ‘non-owner’ stakeholders are the
employees. However, stakeholder theorists take contract theory a step further, maintaining that
people outside of the business enterprise ought to have a say in how the business operates. Thus,
for example, consumers, even community members who could be affected by what the business
does, for example, by the pollutants of a factory, ought to have some control over the business.

Business as property:
This philosophy holds that the business is essentially someone's property, thereby its owners have
the right to dispose of it as they see fit, within the restraints imposed by the law. Workers and
consumers have no special rights over the property, other than the right not to be harmed by its use
without their consent. Workers voluntarily exchange their labour for wages from the business
owner; and they have no more right to tell the owner how he will dispose of his property than the
owner has to tell them how to spend their wages, which is property belonging to the workers.
Furthermore, consumers have no rights to govern or manage the business, which belongs to
someone else.

31. Product Development
1.
1.
2.
3.

Diversification Strategy
Product Modification Strategy
Concept Product Development
No discernible strategy employed by the retailer

The development of new products or services or modifying existing products or services so they
appear new, and the offering those products or services to current or new markets is an important
process for all companies.

Diversification Strategy:
Product diversification involves modifying the company’s product/s or service/s to expand into new
markets by leveraging the company’s existing product or service experience and reputation.
This strategy is especially attractive for companies operating in a saturated market. The product
diversification strategy calls for the company to go outside its existing business and develop new
products or services for a customer segments and new markets. This diversification might be based
on appealing to new customer demographics or price points.

35

3 Suisses International Group - France

Product Modification Strategy:
By working with existing products or services in existing markets the company might attract and
appeal to new customers segments. Product modification which adds new features to extend the
current offering, may also appeal to existing customer bases.

Concept Product Development:
Concept product development is the process of bringing to market unique or innovative product or
service. Generally the company’s existing customer base receives the product as new ideas or
concepts because they have no prior knowledge or experience with these new product or service.
This type of product development poses a financial risk to the company and management should
rely heavily upon disciplined market research as a means of reducing risk.

Regardless of which product development strategy is utilized, the process requires thoroughness
and a series of benchmarks throughout the process. These benchmarks help the company to
assess whether the expensive and time consumed in the product development process should be
continued.
Potential consumers must play a vital role in the product development process, and the consumer
evaluation of the new products or services should be conducted at concept, prototype and final
product stage.

32. Internet Strategy
Checklist:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Employee productivity.
Operational effectiveness.
Reduction of operating costs.
Competitive advantage.
Intra-company communications.
Communications with suppliers.
Communications with customers.
Marketing presence online.
E-Commerce & Online ordering.
Poor internet strategy.

Internet Strategy
The company should have a specific, fully costed, plan to invest in an Internet presence to sell
product online by advertising, marketing, taking orders, fulfilling orders, invoicing and collect
payment over the Internet.
Is the company’s online strategy fully planned?
Is the retailer’s website a ‘me too’ rationale?
Does this retailer have a valid business reason to operate an online selling site?
Does the online selling operation adversely reflect on the retailer’s brand?
Would the retailer be better advised to seek other channels to the market?
Will the retailer’s prospective product buyers search for them on the Internet?
Can the retailer adequately describe and demonstrate the value proposition of the products
over the Internet?
8. Can the retailer successfully compete in the online market space?
9. Can the retailer make a profit from the Internet?
1.
2.
3.
4.
5.
6.
7.

36

3 Suisses International Group - France

33. Marketing Strategy
Market selection. Product planning. Pricing. Place. Promotion.

Marketing Strategy
The marketing strategy is composed of several interrelated components which embraces the
marketing mix:

The Marketing Mix
1. Market selection

Is the retailer adequately targeting their appropriate customers base or subset (segment)?

2. Product planning

Does the retailer properly segment its products for selected customers segments?
Do the retailer’s products have features which are uniquely targeting the market?

3. Pricing


Does the retailer’s pricing strategy reflect a quantitative expression of the value of the
product to the customer?
Is the retailer’s pricing designed like a feature consistent with the use of the product?
Is the retailer’s Price –v- Features matrix realistic?

4. Place

Are the retailer’s stores placed for optimum effect?
Are the retailer’s channels effective in delivering the product and its benefits to the selected
markets?

5. Promotion
a. Positioning: Does the retailer’s messages state the purpose and benefits of the product in the
market in which it competes?
b. Selling: Does the retailer rely on indirect selling which is subject to uncontrollable conditions?
c. Communications

Are the retailer’s target customers adequately informed about the product features and
benefits and thereby persuaded to buy them?
Does the retailer fully exploit branding opportunities?

d. Customer Support and Service

Can the retailer’s customers rely on good customer support and service?

e. Decision Making Unit and the Decision Making Process
The retailer’s actual selling process breaks down into two components: the decision making unit
(DMU) and the decision making process (DMP).

The DMU decision making unit
The DMU consists of all of the people who will play a role in the decision to purchase a product.
The marketing mix program must understand the needs of each of these individuals and find a way
to communicate the marketing message to each of them. These people are typically identified as:

Buyer – the person who actually pays for the product
Decider – the person that actually says this is the product wanted
37

3 Suisses International Group - France

Influencer – whomever helps the decider decide
User – the individual who actually uses the product and derives benefit from it

The DMP or Decision Making Process
The people included in the Decision Making Unit (DMU) interact to make the purchasing decision.
The (DMP) is a description of this interaction. By understanding this process the retailer can best
understand who, how, and when to work on getting the customer to buy.

Does the retailer adequately understand the DMU?
Does the retailer adequately understand the DMP?

34. Sales Strategy
Customers oriented. Understands the relative complexity of the market. Differentiation from
competitors. Benefits from the price –v- value function. Understands expected sales volumes and
margins.
Does the retailer’s sales strategy fully understand:









The Customers and End Users?
The relative complexity of the market?
The differentiation from competitors?
The price –v- value function?
The expected sales volume?
Has the retailer defined the target market?
Has the retailer determined its outreach and which sales strategy will be most effective with
the target market?
Does the retailer know the needs and aspirations of the customer?
Is the retailer able to deliver on promises and customer expectations and thereby build a
relationship with the customer?
Does the retailer adequately monitor the critical aspects of their sales strategy?

35. Strategic Alliances
Many / Some / Few.






Manufacturing alliances
Logistic alliances
Supply Chain alliances
Retailing alliances & Joint ventures
Equity alliance
Non-equity alliance
Geographic alliances

38

3 Suisses International Group - France

36. Operations
Evaluation of the operations strategies which influences the retailer’s performance:










New product/service development strategy: Efficient / Timely / Dependable / Flexible / Cost
effective / Ineffective / No comment
Vertical integration strategy: Efficient / Timely / Dependable / Flexible / Cost effective /
Ineffective / No comment
Facilities strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective /
No comment
Technology strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective /
No comment
Workforce and organization strategy: Efficient / Timely / Dependable / Flexible / Cost
effective / Ineffective / No comment
Capacity adjustment strategy: Efficient / Timely / Dependable / Flexible / Cost effective /
Ineffective / No comment
Supplier development strategy: Efficient / Timely / Dependable / Flexible / Cost effective /
Ineffective / No comment
Inventory strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective /
No comment
Planning and control systems strategy: Efficient / Timely / Dependable / Flexible / Cost
effective / Ineffective / No comment
Improvement strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective
/ No comment
Recovery strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective /
No comment

GOALS
Evaluation of the achievement of goals which influences the retailer’s performance:

37. Renovating premises, stocking, staff hiring and marketing



Renovating premises: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective
/ No comment
Stocking efficiencies: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective /
No comment
Staff hiring and training: Efficient / Timely / Dependable / Flexible / Cost effective /
Ineffective / No comment
Marketing: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective / No
comment

38. Sponsorship & Hosting events
Sponsorships: Significant / Minor. Events: Significant / Minor

39. Penetrate and raise awareness in the targeted consumer market

Target Market Penetration: Significant / Important / Moderate / Average / Insufficient
Raising awareness amongst the target consumers: Significant / Important / Moderate /
Average / Insufficient

39

3 Suisses International Group - France

40. Achieving a higher profit margin
Profit Margin achievements: Significant / Important / Moderate / Average / Insufficient

41. Building the customer base
Customer Base building: Significant / Important / Moderate / Average / Insufficient

42. Generate repeat and referral sales

Repeat Business: Significant / Important / Moderate / Average / Insufficient
Referral Business: Significant / Important / Moderate / Average / Insufficient

43. Expansion potential
Business expansion: Significant / Important / Moderate / Average / Insufficient

44. Reputation as a quality retailer

General Retail Reputation: Significant / Important / Moderate / Average / Insufficient
Reputation for Quality: Significant / Important / Moderate / Average / Insufficient

EXIT STRATEGIES
Envisaged / Unknown / Not planned.






Operations
Brands
Product Lines
Store Locations
Operating divisions
Operating companies
Shareholders & Investors

MANAGEMENT
Evaluation of the retailer’s management:

45. Organizational Structure
Organizational Structure: Resourceful / Professional / Dependable / Flexible / Cost effective /
Ineffective / No comment

46. Leadership
Company Leadership: Resourceful / Professional / Dependable / Flexible / Cost effective /
Ineffective / No comment

47. Staff Members
Company Staff: Resourceful / Professional / Dependable / Flexible / Cost effective / Ineffective / No
comment
40

3 Suisses International Group - France

FINANCIAL PLANS
48. Finance Requirements
Company’s Financial requirements: Well met / Sustainable / Adequately met / Unsustainable / No
comment

49. Use of Funds
Company’s Use of Investment Funds: Well Planned & Implemented / Sufficiently Planned /
Adequately Planned / Uncertain / No comment

50. Cash Flow
Company’s Cash Flow: Very strong / Strong / Moderate / Adequate / Insufficient / Fragile / No
comment

51. Balance Sheet Topics
Company’s Balance Sheet Issues: No issues / Few issues / Some issues / Substantial issues / No
comment

52. Financial Assumptions
Company’s Financial Assumptions: Conservative / Realistic / Neutral / Optimistic / Unsustainable /
No comment

41

3 Suisses International Group - France

Part B : Financial Data
3 Suisses International Group
The financial data is provided in sections:1. the most salient retail Management figures and margins, and
2. a full Balance Sheet and Management Accounts simulation.

Part B.1 : Management figures
Management figures for 3 Suisses International Group:

as an Excel file: Part_B_1

1. Retail Revenue

21. Total Fixed Assets

2. Retail Profitability as a % of Sales

22. Finished Product Stocks

3. Total Retail Selling Space

23. Work in Progress as Stocks

4. Average Store Retail Selling Space

24. Materials as Stocks

5. Average Store Retail Revenues

25. Total Stocks / Inventory

6. Average Retail Store Establishment
Cost

26. Debtors
27. Miscellaneous Current Assets

7. Fixed Assets: Premises

28. Total Current Assets

8. Fixed Assets: Store Fittings

29. Total Assets

9. Fixed Assets: Miscellaneous Items

30. Creditors

10. Fixed Assets

31. Short Term Loans

11. Capital Expenditure on Premises

32. Miscellaneous Current Liabilities

12. Capital Expenditure on Store Fittings

33. Total Current Liabilities

13. Capital Expenditure on Equipment

34. Net Assets / Capital Employed

14. Cap. Expend. on Data Processing

35. Long Term Loans

15. Capital Expenditure on Misc. Items

36. Miscellaneous Long Term Liabilities

16. Total Capital Expenditure

37. Shareholders’ Funds

17. Retirements: Premises

38. Retail Workers

18. Retirements: Store Fittings

39. Total Employees

19. Retirements: Miscellaneous Items
20. Total Retirements

42

3 Suisses International Group - France

Part B.2 : Balance Sheet and Management Accounts
Balance Sheet and Management Accounts for 3 Suisses International Group:
Part_B_2
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.

Return on Capital
Return on Assets
Return on Shareholders' Funds
Pre-tax Profit Margins
Operating Profit Margin
Trading Profit Margin
Return on Investment
Assets Utilisation (given as a ratio of Sales
to Total Assets)
Sales as a ratio of Fixed Assets
Stock Turnover (Sales as a ratio of Stocks)
Credit Period
Creditors' Ratio (given as Creditors divided
by Sales times 365 days)
Default Debtors given as a Ratio of Total
Debtors
Un-Recoverable Debts given as a Ratio of
Total Debts
Working Capital / Sales
Materials & Energy Costs as a % of Sales
Added Value
Investment as a Ratio of Added Value
Value of Plant & Equipment as a % of Sales
Vertical Integration (Value Added as a % of
Sales)
Research & Development Investment as a
% of Sales
Capital Expenditure Investment as a % of
Sales
Marketing Costs as a % of Sales
Current Ratio (Current Assets as a ratio of
Current Liabilities)
Quick Ratio
Borrowing Ratio (or Total Debt as a ratio of
Net Worth)
Equity Ratio (Shareholders Funds as a ratio
of Total Liabilities)
Income Gearing
Total Debt as a ratio of Working Capital
Debt Gearing Ratio (Long Term Loans as a
ratio of Net Worth)

as an Excel file:

31. Average Remuneration (all employees - full
and part)
32. Profit per Employee
33. Sales per Employee
34. Remunerations / Sales
35. Fixed Assets per Employee
36. Capital Employed per Employee
37. Total Assets per Employee
38. Value of Average Investment per Employee
39. Value Added per Employee
40. Materials Costs as a % of Sales
41. Wage Costs as a % of Sales
42. Payroll and Wages as a Ratio to Materials
43. Variable Costs as a % of Sales
44. Fixed Costs as a % of Sales
45. Fixed Costs as a Ratio of Variable Costs
46. Distribution Costs as a % of Sales
47. Warehousing Costs as a % of Sales
48. Physical Costs as a % of Sales
49. Fixed as a Ratio of Variable Distribution
Costs
50. Fixed as a Ratio of Variable Warehousing
Costs
51. Fixed as a Ratio of Variable Physical Costs
52. Fixed as a Ratio of Variable Total
Distribution & Handling Costs
53. Product Returns & Rejections Costs as a %
of Sales
54. Product Installation & Associated Costs as a
% of Sales
55. Product Breakdown & Associated Costs as a
% of Sales
56. Product Systems & Associated Costs as a %
of Sales
57. Product Service & Associated Costs as a %
of Sales
58. Customer Complaint & Associated Costs as
a % of Sales
59. Stock Work in Progress & Materials as a
Ratio of Finished Products
60. Stock Materials as a Ratio of Work in
Progress

43

3 Suisses International Group - France
61. Un-recoverable Debts as a Ratio of Total
Debt
62. Un-recoverable Debts as a Ratio of Debts
Within Agreed Terms
63. Total Sales Costs as a % of Sales
64. Total Distribution & Handling Costs as a %
of Sales
65. Total Advertising Costs as a % of Sales
66. Total After-Sales Costs as a % of Sales
67. Total Customer Compensation Costs as a
% of Sales
68. Total Variable Marketing Costs as a % of
Sales
69. Total Fixed Marketing Costs as a % of Sales
70. Total Fixed Marketing Costs : Ratio of Total
Variable Marketing Costs
71. Variable Sales Personnel Costs as a Ratio
of Marketing Costs
72. Variable Distribution & Handling Costs :
Ratio of Marketing Costs
73. Variable Advertising Costs as a Ratio of
Marketing Costs
74. Variable After-Sales Costs as a Ratio of
Marketing Costs
75. Sales Personnel Variable Costs as a Ratio
of Sales
76. Sales Personnel Variable Costs as a Ratio
of Debtors
77. Sales Personnel Variable Costs as a Ratio
of Un-Recoverable Debtors
78. Exports as a % of Sales
79. $ Hourly Pay Rate
80. $ Hourly Wage Rate
81. Capital Employed
82. Return on Capital
83. Return on Assets
84. Return on Shareholders' Funds
85. Pre-tax Profit Margins
86. Operating Profit Margin
87. Trading Profit Margin
88. Return on Investment
89. Assets Utilisation (ratio of Sales to Total
Assets)
90. Sales as a ratio of Fixed Assets

91. Stock Turnover (Sales as a ratio of Stocks)
92. Credit Period
93. Creditors' Ratio (given as Creditors divided
by Sales times 365 days)
94. Default Debtors given as a Ratio of Total
Debtors
95. Un-Recoverable Debts given as a Ratio of
Total Debts
96. Working Capital / Sales
97. Materials & Energy Costs as a % of Sales
98. Added Value
99. Investment as a Ratio of Added Value
100. Value of Plant & Equipment as a % of
Sales
101. Vertical Integration (Value Added as a %
of Sales)
102. Research & Development Investment as a
% of Sales
103. Capital Expenditure Investment as a % of
Sales
104. Marketing Costs as a % of Sales
105. Current Ratio (Current Assets as a ratio of
Current Liabilities)
106. Quick Ratio
107. Borrowing Ratio (or Total Debt as a ratio
of Net Worth)
108. Equity Ratio (Shareholders Funds as a
ratio of Total Liabilities)
109. Income Gearing
110. Total Debt as a ratio of Working Capital
111. Debt Gearing Ratio (Long Term Loans as
a ratio of Net Worth)
112. Average Remuneration (all employees full and part)
113. Profit per Employee
114. Sales per Employee
115. Remunerations / Sales
116. Fixed Assets per Employee
117. Capital Employed per Employee
118. Total Assets per Employee
119. Value of Average Investment per
Employee
120. Value Added per Employee

44

3 Suisses International Group - France
121.
122.
123.
124.
125.
126.
127.
128.
129.
130.
131.
132.
133.
134.
135.
136.
137.
138.
139.
140.

Materials Costs as a % of Sales
Wage Costs as a % of Sales
Payroll and Wages as a Ratio to Materials
Variable Costs as a % of Sales
Fixed Costs as a % of Sales
Fixed Costs as a Ratio of Variable Costs
Distribution Costs as a % of Sales
Warehousing Costs as a % of Sales
Physical Costs as a % of Sales
Fixed as a Ratio of Variable Distribution
Costs
Fixed as a Ratio of Variable Warehousing
Costs
Fixed as a Ratio of Variable Physical
Costs
Fixed as a Ratio of Variable Total
Distribution & Handling Costs
Product Returns & Rejections Costs as a
% of Sales
Product Installation & Associated Costs as
a % of Sales
Product Breakdown & Associated Costs
as a % of Sales
Product Systems & Associated Costs as a
% of Sales
Product Service & Associated Costs as a
% of Sales
Customer Complaint & Associated Costs
as a % of Sales
Stock Work in Progress & Materials as a
Ratio of Finished Products

141. Stock Materials as a Ratio of Work in
Progress
142. Un-recoverable Debts as a Ratio of Total
Debt
143. Un-recoverable Debts as a Ratio of Debts
Within Agreed Terms
144. Total Sales Costs as a % of Sales
145. Total Distribution & Handling Costs as a
% of Sales
146. Total Advertising Costs as a % of Sales
147. Total After-Sales Costs as a % of Sales
148. Total Customer Compensation Costs as a
% of Sales
149. Total Variable Marketing Costs as a % of
Sales
150. Total Fixed Marketing Costs as a % of
Sales
151. Total Fixed Marketing Costs : Ratio of
Total Variable Marketing Costs
152. Variable Sales Personnel Costs as a
Ratio of Marketing Costs
153. Variable Distribution & Handling Costs :
Ratio of Marketing Costs
154. Variable Advertising Costs as a Ratio of
Marketing Costs
155. Variable After-Sales Costs as a Ratio of
Marketing Costs
156. Sales Personnel Variable Costs as a
Ratio of Sales
157. Sales Personnel Variable Costs as a
Ratio of Debtors
158. Sales Personnel Variable Costs : Ratio of
Un-Recoverable Debtors
159. Exports as a % of Sales
160. $ Hourly Pay Rate
161. $ Hourly Wage Rate
162. Capital Employed

45

3 Suisses International Group - France

Part C : Product Offering
3 Suisses International Group
Product Offerings at 3 Suisses International Group:

as an Excel file: Part_C

Main Product Lines
Data is given on the 15 main product lines which represent at least 80% of revenues at 3 Suisses
International Group.

In-House Brands
Data is given on the 15 main products which are considered as being In-House Brands or Own
Brands. This is the In-House Brand addendum.

Third Party Brands
Data is given on the 15 main products which are considered as being Third Party Brands. This is the
Third Party Brand addendum.

Ancillary and Add-Value Products & Services
Data is given on the 15 main Ancillary and Add-Value Products & Services. This is the Company
Services addendum.

46

3 Suisses International Group - France

Part D : Retail Locations
This data is available on a Corporate basis and on a Location/Site basis for 3 Suisses
International Group

Demographics & Lifestyle Analysis
The composition of the retail trading area population is critical to the retailer. The population will
include a variable mix of income groups, family groups, homeowners or renters, age groups, ethnic
groups, educational norms, employment groups, et cetera. Each population mix will determine how
the general population in the trading area is likely to purchase various consumable and durable
products.
To analyze market opportunities for a trading area, one needs to examine data and ask questions like
the above about residents of the trading area. This data must include the absolute number of
residents, as well as their household characteristics. Current and projected demographic, lifestyle and
consumer spending data about the trading area from secondary sources can provide this information.
Demographic and lifestyle data about the trading area can give one a starting point for an in-depth
analysis of specific business and retail development opportunities. This data also can help understand
how the broader population changing.

Demographic Data
It is assumed that product preferences vary across different groups of consumers. These preferences
relate directly to consumer demographic characteristics, such as household type, income, age, and
ethnicity. For this reason, it is not only the amount of demand that truly matters to a trading area; the
Mix of Consumers also has a major impact on a trading area, and therefore must be thoroughly
examined in all retail analyses. Albeit, there is a great deal of data included in these studies which
then has to be analysed. The enormous amount of data can leave the user with a large number of
tables and consequent information overload; therefore a number of toolkits are provided by
DataGroup to assist users with software to present and interpret the data.

Relevant Data Categories
Interpretation of demographic data is often missing in market analysis; however in neglecting this data
one fails to fully appreciate how consumers spend their time and money. Specifically, the data
provides insights into new business or retailing opportunities in the trading areas. Understanding and
interpretation of demographic data includes the following elements:

Population and household composition data allow one to quantify the current market size and
extrapolate future growth. Population is defined as all persons living in a geographic area.
Households consist of one or more persons who live together in the same housing unit;
regardless of their relationship to each other (this includes all occupied housing units).
Households can be categorized by size, composition, or their stage in the family life cycle.
Typically, demand is generated by the individual or the household as a group. Thus, the entire
family influences a household purchase, such as a family car or TV. Individual purchases, on
the other hand, are personal to the specific consumer. Anticipated household or population
growth may indicate future opportunities for a retailer. An analysis of household and/or overall
population growth provides aggregate potential retail demand in a population.

Household income data is a good indicator of the population’s spending power. Household
income positively correlates with retail expenditures in many product categories. When
47

3 Suisses International Group - France
evaluating a market, retailers look at the median or average household income in a trading
area and will seek a minimum number of households within a certain income range before
establishing a business or setting prices. Another common practice is to analyze the
distribution of household incomes. Discount stores may avoid high income areas. Some
speciality fashion stores target incomes above $100,000 households. A few store categories,
such as auto parts, are more commonly found in areas with lower household incomes.
However, using income as the sole measure of a market’s buying preferences can be
deceptive and one needs to consider all categories of demographic data when analysing a
market.

Highly affluent households with annual incomes above $200,000 comprise one of the
fastest growing segments of the population; increasing in some countries by more
than 3 percent each year since 2008. They are strong consumers, as well as
physically active and conservative in their habits. Gearing a retail mix toward this
segment may require a focus in luxury goods and services. High-end department and
technology stores, as well as cultural amenities like museums and concert halls, are
frequented by the most affluent households within a population.

Middle-income households with annual incomes between $50,000 and $100,000 are
much more mindful of their expenses than highly affluent families. These households
tend to be more frugal and selective in their buying behaviour, shopping at discount
outlets for groceries and other goods rather than high-end stores, especially since
2008. Superstores are particularly popular for middle and low-income households.

Low-income households with annual incomes below $25,000 are in a different
situation than affluent and middle-income households. Families at this income level
are often living in poverty and thus spend very little on goods and services across the
board. The financial circumstances of these households have deteriorated even
further since 2008.

Age is an important factor to consider because personal expenditures change as individuals
grow older. Purchases change throughout a family’s life cycle, and that holds true for
individuals, as well. One important stage of life, and an increasingly influential category, is the
65 and older group. Realizing and providing for the needs of an aging population can be
beneficial to any retailer. Consumer spending on pharmacies and health care services flourish
in areas with a large elderly population; albeit, older populations tend to spend less on the
majority of goods and services. Studies indicate that nightlife and entertainment spending
(restaurants, bars, and entertainment) by people over 65 is roughly half that spent by those
under 65. Older adults also spend considerably less on apparel than other age groups. On
the other end of the spectrum, toy stores, day care centres, and stores with baby care items
do well in areas with many children and infants. Clothing stores and fast food establishments
also thrive in areas with a high adolescent population. Some entertainment and recreational
venues, such as movie theatres and golf courses, serve a broad section of the population.

Education levels also figure into the socio-economic status of an area. Because income
usually increases with advancing educational attainment, many retailers focus on income
level rather than education. There are some exceptions to this, though. Bookstores are often
cited by retailers as a business whose success is directly correlated with the number of
college educated individuals in the trading area. Similarly, computer and software stores are
often located in areas with high levels of education. In general, areas with high levels of
educational attainment tend to prefer luxury items; and, they may have a preference for
shopping at smaller, non-chain specialty retail stores located in the fashionable districts. They
also tend to visit cultural establishments like museums and theatres at a frequency over three
times greater than those without a college degree. On the other hand, less-educated
populations generally have lower incomes and thus tend to prefer shopping at discount retail
outlets and chain stores. This group also spends more money on car maintenance and
tobacco products than those with a college degree.

Occupational concentrations of white and blue-collar workers are used as another gauge of a
market’s product preferences. Speciality apparel stores thrive in middle to upper income
48

3 Suisses International Group - France
areas and those with above-average white-collar employment levels. Discount clothing stores
and used car dealerships are successful in areas with a higher concentration of blue-collar
workers. Office supply stores and large music and video stores are especially sensitive to the
occupational profile. These retailers target growth areas with a majority of white-collar
workers.

Ethnicity is another factor retailers consider when choosing merchandise to carry. Data show
that ethnicity affects spending habits as much as other demographic characteristics, such as
income and age. Tastes in goods and services vary between ethnic groups, and local retailers
are wise to cater to the different needs of ethnic groups in their trading area. Ethnicity
influences retailers’ product mix, including the lines of clothing they carry, and their
advertising. Retailers that use segmentation based on race and ethnic groups must make
sure their efforts effectively measure the true preferences and behaviours of the community.

Housing ownership and rate of housing turnover is an important factor for some retailers to
consider. Home ownership directly correlates with expenditures for home furnishings and
home equipment. Furniture, appliances, hardware, paint/wallpaper, floor covering, garden
centres and other home improvement products all prosper in active housing markets.

Comparing the Primary Trading Area with other Areas
Demographic statistics are especially useful if they are presented in comparison with other locations.
To see how the target trading area differs from other locations, it is useful to provide comparison sets
of data: comparable populations and the regional or national data as a whole.
The basic trading areas for France are as follows:

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

France
Île-de-France
Rhône-Alpes
Provence-Alpes-Côte-d'Azur
Nord-Pas-de-Calais
Pays-de-la-Loire
Aquitaine
Midi-Pyrénées
Nord
Languedoc-Roussillon
Centre
Lorraine
Paris
Bouches-du-Rhône
Picardie

In addition the individual Cities and Town in France are provided in the Market Research in Section 3
http://www.dg-di.eu/BASE_FOLDERS/World_Cities/FR.html
Comparing the target trading area with other populations and the regional data allows demographic
baselines to be established. These baselines will help determine whether the target trading area has
low, median, or high values in each demographic category. For instance, after examining
demographics for the target trading area, it may appear that there are a high proportion of white-collar

49

3 Suisses International Group - France
workers. However, this observation cannot be verified until one know what constitutes an average
number of white-collar workers.
Comparable populations can include five or six urban areas of similar size in the same region. The
urban areas chosen should reflect similar distances from metropolitan statistical areas of the region.
Depending on the geographic size of one’s primary trading area, one will need to select similar-sized
trading areas.
In addition to comparable populations, adding regional or national statistics will provide a broader
benchmark for comparing a specific trading area. Regional or National data will include a blend of
urban and rural areas. Accordingly, it will not be limited to uniform populations. However, differences
between the trading area and the regional or national data (such as per capita income) will be used
later in one’s analysis of retail or service business opportunities.

Demographic Data Sources
Detailed local census data is readily available from various national government agencies around the
world. For example, the U.S. Bureau of Census data can be retrieved at several geographic levels
(county, city/village, census tract, zip code, etc.); and similar data exists in many countries.
In addition to the government data, there are numerous, national data sources that can provide
demographic estimates for a particular trading area; albeit, much of this data is based on the
government and other public sources. Unfortunately much government data is not packaged in userfriendly comparative formats that make it easy to compare one geographic area with another. One
needs to be able to tap into the knowledge of skilled demographers who have designed data products
centred on particular industry needs.
The essential retail tool is the correlation of general population demographic data with individual
markets and products. These DataGroup databases are designed to provide such data.

Lifestyle Data
Adding consumer lifestyle data takes the market analysis nearer to the reality of any market
forecasting situation. This data recognizes that the way people live (lifestyle) influences what they
purchase as much as where they live (geography) or their age, income, or occupation (demography).
Lifestyle data enables one to include the consumer’s interests, opinions, and activities and the effect
these have on buying behaviour in the retail analysis.

Lifestyle Segmentation Algorithm
Lifestyle Segmentation examines the relationship between a population’s lifestyle characteristics and
its product preferences. Retail revenues of particular Product Group classes are stimulated by large
concentrations of populations of similar characteristics and tastes. As a result, a retailer can develop
product mixes targeted to specific customer segments which display a high propensity to consume
the product range(s) being marketed.
Concentrations of lifestyle segments create demand for specific products or services. This tendency
to cluster is based on the evidence that people prefer to live close to those similar to themselves.
Homes and cars in any particular neighbourhood are usually of similar size and value. If one could
look inside the homes, one would find many of the same products. Neighbours also tend to participate
in similar leisure, social, and cultural activities.
The quality of a segmentation algorithm is directly related to the data that it inputs. High certainty
algorithms allow one to reliably predict consumer behaviour. In a retail business targeting particular
consumers, the algorithm allows the retailer to identify products and services that appeal to that
market segment. The usefulness of a segmentation algorithm depends on how well the data
50

3 Suisses International Group - France
incorporates lifestyle choices, media use, and purchase behaviour into the basic demographic mix.
This supplemental data comes from various sources, such as till receipt records, credit reference
agencies, automobile registrations, magazine subscription lists, consumer product-usage surveys,
and so forth.

Lifestyle Data Sources
These DataGroup databases offer lifestyle cluster data, which utilize sophisticated statistical models
to combine several primary and secondary data sources to create their own unique cluster profiles for
each product group and market segment. Most models start with data from block groups that contain
500-1500 households. In rural areas, the data is more typically clustered by post or zip code. This
data will breakdown each geographic area into one or more of the over 100 defined market segment
classes based on differentiated socio-economic and demographic characteristics.

Lifestyle Segment Summary
These segments include:

Demographics

Socioeconomic Classes

Consumer Behaviours

The Segmentation will include quantitative data, such as the Consumer Values Models, Product Life
Cycle Models, Buying Power Index, Quality Index, Advertising Efficiency Models, and so forth, which
measures potential demand for specific products or services groups. These indices compare the
demand for each market segment with demand from both regional and national consumers. It is
tabulated to represent a value of 100 as the average demand. The indices can be aggregated into a
single value. Values above 100 indicate residents are more likely to purchase that product or
participate in the respective activity. Conversely, values below 100 indicate residents are less likely to
purchase the given product. These values are then shown for the Trading Area of the specific
Retailer, the Regional and National values and the overall Median value.
In this report there are 15 Product Groups represented:Product
Product Group #1
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #8
Product Group #9
Product Group #10
Product Group #11
Product Group #12
Product Group #13
Product Group #14
Product Group #15

Trading Area

Regional

National

Median

From this data, a clear picture of the important demographic, socioeconomic, and consumer
behaviour of residents in a specific Trading Area emerges.

51

3 Suisses International Group - France

Lifestyle segmentation generalizes the types of customers in the trading area, which is useful in
making sense of a complex market. However, this simplification may not fully capture the particular
behaviours of the customer base or may overlook the propensity to consume of differentiated groups
in the trading area. Since data is continually updated in these DataGroup databases, lifestyle
segments are evaluated in near real-time. This is valid both where social and economic conditions
remain constant and where significant changes may make a static view of the segment less
representative of reality.
Thus lifestyle segments can greatly help one understand customers in the trading area only where the
survey data is gathered and updated on a regular and statistically valid basis.

Propensity to Consume Data
Estimates of household spending give an idea of the size of a market in value terms. For example,
Secondary data are available that allow one to estimate the size of the local food or restaurant
market, based on the number of households in the trading area. In addition, Primary data is useful to
provide refined estimates based on local demographics. It is important to remember that these
estimates measure the amount of spending by households residing in the trading area, not
necessarily spending within the trading area that also includes non-residents. Conversely, residents of
the trading area may choose to spend outside the trading area.

Consumer Expenditure Survey
Consumer Expenditure Surveys are the primary data source for Propensity to Consume estimates
that covers a whole range of household spending. The results of the surveys provide a
comprehensive picture of household spending and are used to revise the Consumer Price Index and
the Purchasing Parity Index for national (and sometimes regional) markets.
The Consumer Expenditure Survey usually includes a Diary Survey of daily purchases and an
Interview Survey of general purchases over time. The Diary Survey reflects record-keeping by
consumer units (individual and household shoppers) for two consecutive week periods. This
component of the Consumer Expenditure Survey collects data on small, daily purchases that could be
overlooked by the quarterly Interview Survey. The Interview Survey collects expenditure data from
consumers in interviews conducted on a randomised monthly basis. The data from both surveys is
integrated to provide a comprehensive database on all consumer expenditures.
In addition to the Consumer Expenditure Survey, there are supplementary and complementary
datasets to provide more sophisticated estimates of specific market segments and product group
consumption patterns. For example, a Differential Probability Model links spending by the consumers
surveyed to all households, with similar socioeconomic characteristics, with opportunity costs and
differential spending patterns. The results are spending estimates based on the demographics of a
particular trading area, which are reported together with the average spending per household and a
spend Propensity to Consume index. The index compares the spending of the trading area’s
households to the regional and national average.

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Geographic Information Systems
Demographic analysis is useful in understanding purchasing characteristics for different market
segments. While demographics can be collected and analyzed without the use of geographic
information systems, GIS often aids and enhances the analysis. Since the use of GIS may be costly
learning curve for many retail professionals not expert in GIS, a battery of software is available in the
DataGroup Toolkits provided to users to offer technical mapping assistance.
Demographic data for a trading area is often reported as single values for each demographic
category. For example, the trading area income is reported as one value, even though income can
vary across the trading area. GIS, however, can display demographic values in finer detail by
geographic unit (zip code, street blocks, etc.). Mapping these variations may reveal valuable visual
information that can be used to show the attractiveness of different retailing locations and assist retail
site planning.
Effective demographic mapping requires an understanding of some rudimentary cartographic
concepts. Perhaps the most important concept is an understanding of the problems associated with
demographic densities. Obviously, urban population density is usually higher than a similar sized
suburban area. Moreover, many retailers would view the large concentration of customers as a
competitive advantage over a suburban location. However, a map showing the number of people in
each geographic unit does not always show this relationship.
In addition to understanding the propensity to consume within a specific trading area, one also needs
to analyse geographic factors which may assist or impede those consumption patterns. For example,
geographical barriers (rivers, railroad tracks, highways, et cetera), which may divide an area and
thereby put certain locations in a ‘shadow zone’ which is difficult for consumers to reach. By contrast,
rapid transit transport links may assist service industry retailers, and stores selling small or easily
transported items.
GIS is not limited to producing maps and graphics, but can also be used as an analytical tool in
demographic analysis. Non-resident visitor profiling is vital for many companies, such as commuter
transportation, catering and tourist attractions. While collecting demographics for the surrounding
resident market is a straightforward process, non-resident visitors can come from a wide area; and
obtaining and analysing demographics for every area that produced a non-resident visitor is
unrealistic using traditional methods. In these instances, GIS can be used to profile demographics of
the non-resident market.
Many businesses, such as hotels, and ‘Destination’ retail venues (like flagship department stores or
luxury goods shopping streets), dependent on non-resident visitors and the use of data mining
techniques for customer records and payment records can be interfaced with GIS to produce a more
comprehensive view of a business’ actual catchment area.
Using neighbourhood demographic information as a simile, the demographics of a trading area as a
whole can be used to represent the demographics of an individual visitor from that trading area. Using
addresses, GIS can determine every trading area that produced a visitor and extract the
demographics of those trading areas. The demographics extracted from each visitor neighbourhood
can be combined to produce a useful demographic profile of the visitor market.
The demographic profile is even more useful when it is given some perspective. Similar to the
comparable population analysis, the visitor demographic profile can be used to determine what makes
visitors demographically different from the general population. Instead of comparing local trading area
demographics to those of other populations, the visitor demographics can be compared to the
demographics of a larger region. For instance, if visitors primarily originate from a regional area, the
visitor demographic profile can be compared to the demographics for the entire population of that
region. These demographic profiles of the trading area visitors and the larger region can be compared
on a category by category basis.
Once the visitor origins have been mapped, GIS is used to determine the trading areas containing
each visitor and extract the associated neighbourhood demographics. These neighbourhood
demographics are used as a proxy for the demographics of an individual visitor.
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3 Suisses International Group - France

GIS is used to combine all of the demographics extracted from every visitor neighbourhood.
Combining the trading areas creates a demographic profile of the visitors. To aid in the analysis, GIS
also creates a demographic profile of the larger region. The regional demographic profile includes
every trading area in the region instead of just those neighbourhoods that produced visitors. These
profiles are then used to examine differences in visitor demographics.

Demographic Category

Trading Area Profile

Males
Females
Average Household Size
Median Age
Age Less Than 18
Age 16 or More
Age 25 Or More
Age 65 or More
Median Household Income
Average Household Income
Per Capita Income
Education: High School
Education: College
Education: Qualification
Education: Degree
Education: Higher Degree
Occupation: Executive
Occupation: Professional
Occupation: Technician
Occupation: Sales
Occupation: Clerical
Occupation: Services
Occupation: Production
Home Owner
Home Renter

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Regional Profile

National profile

3 Suisses International Group - France

Neighbourhood Analysis

Catchment Area Analytics
The successful location of individual retail stores also depends on the neighbourhood or economic
environment in which it is located. Whether the stores are located in a stand-alone position, a
shopping street, a shopping centre or mall, within another retail premises, or some other site location,
will impact on financial performance.
This is a question of Footfall Flows; being: how, from where, and when, does customer traffic interact
with a particular store location. Where retailers are selling impulse or discretionary items it is
necessary that customer traffic reaches their store before customers have spent their money en route.
This is a similar exercise to that which is employed by supermarkets in positioning products within the
aisles of their stores. One needs to encourage customers to spend their money in a logical flow
process so that they spend the optimum amount.
Whereas individual retail stores may not be able to capture Footfall Flow data across the entire
customer catchment area, DataGroup can provide this data and this can be interfaced with the
retailer’s own in-store footfall data.
One needs to evaluate and identify (within the catchment area:
Trade Analysis of 3 Suisses International Group:

as an Excel file: Part_D

1. The spending hotspots within the consumer catchment areas.
2. The flow patterns for customer traffic, for example, en route from parking area to prime (most
visited) retail location.
3. The contour map of neighbourhood retailers and their products, for example, supermarkets,
food products, clothing, consumer electronics, et cetera. This will dictate the how and where
the customer will first spend their money, and thereafter what they may have to spend on
more discretionary purchases.
4. The traffic volumes for retail units and locations based on footfall numbers.
5. The retail segments and sites with dynamic and growing sales within the catchment area.
6. The fashionable or popular sites and retailers within the catchment area, and their particular
demographic profile.
7. An analysis to identify expected customer demographics for the particular store locations.
8. A footfall flowchart to identify expected retail traffic and sales for the particular store locations.
9. A forecast of the footfall expected as a result of a particular type of marketing campaign.
10. The store costs and overheads for the particular store locations correlated with potential
sales.
11. An analysis of retail store performance, product line performance, and customer segment
sales for the particular store locations.
12. A profitability forecast correlated with retail traffic and sales for the particular store locations.

Shopping Centre tenant mix
Retailers should be aware that the tenant mix of any shopping centre or mall in which they locate their
stores will potentially impact on their profitability.

The ideal tenant mix in which a retailer locates a store will depend on the various indicators of retail
success including sales density, visitor traffic, visitor demographics and often more importantly, the
nature and customer base of the other retailers in the retail space.
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Site Analytics
Performance management for individual stores
The understanding of the circumstances and causes of each and every variation in the revenues of a
retail operation is the basis of every successful retailer. The analysis of retail data correlated with
industry and market data allows retailers to react to events by seizing opportunities and facing
challenges.
The ability to address critical issues, not only the vagaries of the market and consumer demand, but
also seasonal variations, staffing levels, customer satisfaction data, retail store upgrades and layout
changes, marketing initiatives, and so forth, will allow retailers to perform better than competitors.

Site Analysis
It is essential for retailers to analyse and integrate data from each site. This includes sales, inventory,
visitors, conversion rates, staffing numbers, marketing and advertising promotions, public holidays,
weather, and other variables. This data gathering should be automated and DataGroup can provide
clients with suitable site based software that will capture this data.

Site Analytics
The analysis of the data will provide retailers with many tangible business planning tools, including:Trade Analysis of 3 Suisses International Group:
13.
14.
15.
16.
17.
18.

as an Excel file: Part_D

Identify their optimum ratio of staff to customers
Identify unused store potential & resources
Improve their conversion rate and average transaction values
Increase store profitability and customer service levels
Refine operations in every inch of the store to capture opportunities
Track the effectiveness of marketing initiatives

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Footfall

The most important component of revenue
The numbers of potential customers which cross the threshold of any store will ultimately define that
store’s financial performance. The quantification of visitor numbers, and their subsequent correlation,
provides an analysis to assist the retailer to produce effective business planning. These
measurements will include:Trade Analysis of 3 Suisses International Group:

as an Excel file: Part_D

19. The footfall patterns which are typical during each month of the year.
20. The peaks or troughs which may be affecting business performance and where changes
could be made, for example, expenditure on advertising and marketing activity to boost traffic,
or efficient resource allocation for peak visitor periods.
21. How footfall patterns differ in each site and in a representative area.
22. Correlations between store sales revenues and regional and national monthly footfall trends
23. Variations in footfall patterns between competitive retail sectors and outlet types.

Footfall Analysis
The collection of this data is essential to the analyse and understanding of customer behaviour and
trends as well as to allow retailers to understand conversion rates and retail location characteristics in
order to improve their business planning and forecasts. The understanding of footfall data can allow
the evaluation and understand of ‘before’ and ‘after’ scenarios for marketing and promotional activity;
understand footfall during both slack as well as peak periods; benchmark performance amongst
individual sites and generally in regions; and allow the use to see how and when one might improve
one’s profit ratios. Essentially, one gains insight into how one might optimise sales performance
through better sales efficiency, conversion rates, and customer service.

Footfall Analytics
The question of whether a retail site is performing to its full potential can only be answered if one can
analyse visitor numbers and compare those with other sites, other competitors and other distribution
outlets.
Essentially, the first question one must ask is if the property is properly positioned and located for
maximum profit and minimum risk.
Retailers use the data to locate their store portfolio, organise their markets, and segment their
customer data.
Retailers can measure the effectiveness of each location in attracting potential customers to their
premises. This is done in conjunction with different methods of marketing and promotion for different
store locations to develop an understanding of store performance and untapped store potential. This
is then extended to analyse conversion ratios to determine whether footfall numbers can be converted
into tangible sales.

Footfall Technology
The technology used to capture footfall data is relatively straightforward and essentially consists of instore sensors which count visitors and the appropriate data recorder and software to record those
visits. These sensors will consist of one or more of the following technologies, Car Counting – Retail

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3 Suisses International Group - France
Traffic, Laser Counter, Stereoscopic Video Cameras, Thermal Cameras, Wireless Infrared Beam, et
cetera. The actual equipment used always depends on the individual site circumstances.
Footfall measurement should be flexible, intuitive, and non-intrusive. Systems are designed for selfadministration and customised reporting of datasets:
Trade Analysis of 3 Suisses International Group:

as an Excel file: Part_D

24. Classification which differentiates product location type and discrete areas within a store.
25. Reporting routines which allow control of each type of report, report schedules, and delivery.
26. Alerts whereby managers can receive text alerts when performance crosses a pre-set
threshold.
27. Rankings which identify best and worst performers according to criteria such as shopper
traffic, sales, costs, performance against target and staff numbers.
28. Personalisation of the system to accommodate multiple languages and time zones and which
will automatically switch to the pre-set requirements of users across the globe.

Conversion Rates
Conversion Analytics
The Conversion Rate is of course a vital issue. After having invested in footfall, the retailers want to
know how to convert that footfall into revenue. These measurements also allow retailers to identify
poorly performing stores where footfall is not being converted into sales.

Conversion Factors
The factors which influence conversion rates are complex; however they are decipherable with the
use of suitable software. Data analysis allows all the relevant factors to be considered when
evaluating and formulating store strategies. These may include the following issues:Trade Analysis of 3 Suisses International Group:

as an Excel file: Part_D

29. The demographic environment in which stores are located.
30. The Conversion Rate and Product Sales Analysis of each location.
31. The Customer Profile of each location and the correlation with Conversion Rates.
32. The Financial Performance of individual stores and if these equate with expected Conversion
Rates.
33. The factors which are increasing or decreasing Financial Performance of individual stores,
when compared with comparable stores.
34. Identification and application of Conversion Rate factors to allow specific stores to improve
Financial Performance.

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Part E : Advertising, Marketing, & Events
This data is available on a Corporate basis and on a Location/Site basis for 3 Suisses
International Group

Survey of Advertising Services used
Company Surveys of 3 Suisses International Group:

as an Excel file: Part_E

Approval and usage of advertising services for company, retail outlet or brand purposes:
1. Which of the following best describes the line decision maker’s position within the company?
a. Owner
b. Chief Executive
c. Partner
d. Senior executive in charge of advertising, marketing, brand.
e. Executive in charge of advertising, marketing, brand.
f. Professional consultant
g. Finance/accounting/purchasing
h. Marketing
i. Office manager
j. Outlet / Site manager
k. Administrative assistant
l. Technical or IT professional
m. Sales professional
n. Other
2. Where (Town, State, Country) is the office/site located?
3. How many employees work at this location?
a. 1 to 17
b. 18 to 19
c. 20 to 99
d. 100 to 199
e. 200 or more
f. Other
4. Select the range that best describes the approximate annual sales for the company at this
location.
a. Less than $100,000
b. $100,000 to $499,999
c. $500,000 to $999,999
d. $1 million to $5 million
e. $5 million or greater
f. Don’t know or Other
5. How much would you estimate you spent (in total) on the following advertising, sales and
marketing activities (at this location) in the past 6 months?
a. $0
b. Less than $500
c. $500 to $1,500
d. $1,500 to $9,000
e. $9,000 to $20,000
f. $20,000 to $50,000
g. $50,000 or More
h. Don't know
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3 Suisses International Group - France

6. Specify what percentage of your annual advertising budget is spent in the following
categories:
a. Advertising in Yellow pages
b. Advertising in online directory / online yellow pages
c. Advertising in the local newspaper
d. Advertising in on-line search engines
e. E-mail marketing campaign
f. Holiday & greeting cards to customers or clients
g. Other greeting cards to customers or clients
h. Logo clothing or promotional items (hats, t-shirts, pens, notepads)
i. Press release
j. Direct mail campaign
k. Television advertising
l. Radio advertising
m. Market research & Audits
7. For each of the following advertising, sales and marketing services listed, which have your
company purchased in the past 6 months:
a. Advertising in Yellow pages
b. Advertising in online directory / online yellow pages
c. Advertising in the local newspaper
d. Advertising in on-line search engines
e. E-mail marketing campaign
f. Holiday greeting cards to customers or clients
g. Other greeting cards to customers or clients
h. Logo clothing or promotional items (hats, t-shirts, pens, notepads)
i. Press release
j. Direct mail campaign
k. Television advertising
l. Radio advertising
m. Market research & Audits
8. For each of the following advertising, sales and marketing services listed, which do your
company plan to purchase in the next 6 months:
a. Advertising in Yellow pages
b. Advertising in online directory / online yellow pages
c. Advertising in the local newspaper
d. Advertising in on-line search engines
e. E-mail marketing campaign
f. Holiday greeting cards to customers or clients
g. Other greeting cards to customers or clients
h. Logo clothing or promotional items (hats, t-shirts, pens, notepads)
i. Press release
j. Direct mail campaign
k. Television advertising
l. Radio advertising
m. Market research & Audits
9. If you conducted a direct mail campaign in the past 6 months, how did you go about preparing
and sending your direct mail for the most recent campaign you ran?
a. Did the entire process internally (everything from writing letter, buying supplies,
printing, stamping and mailing)
b. Outsourced the direct mail to an agency
c. Used an on-line provider

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10. If you conducted a direct mail campaign in the past 6 months, which of the following items did
you send as part of the most recent campaign you ran?
a. Postcard
b. Coupon
c. Letter
d. Newsletter
e. Brochure
f. Gift item
g. Other
11. How satisfied are you with the overall results of your direct mail campaigns; that is, the
increase in sales you generated or the overall impact on your business.
a. Extremely satisfied
b. Somewhat satisfied
c. Neither satisfied nor dissatisfied
d. Somewhat dissatisfied
e. Extremely dissatisfied
12. If you outsourced your advertising, print production, or direct sales campaigns, what was your
opinion of the performance you received:
a. Poor value for the money/ price
b. Low quality of finished product
c. Too complicated
d. I like to be able to see the proofs or samples before the campaign
e. Uncomfortable outsourcing
f. Want to do it ourselves
g. Slow speed of service
h. Too much of a hassle to switch vendors
i. Don’t trust the supplier
j. Other
13. How likely would you be to outsource your advertising, print production, or direct sales
campaigns?
a. Very likely
b. Somewhat likely
c. Somewhat unlikely
d. Very unlikely
e. Other
14. If you use a direct mail or sales prospect list, how did you acquire the list that you used most
recently?
a. The company’s own customer list
b. Purchased a list from an external list broker
c. Purchased a list from a catalogue
d. Purchased a list from a direct mail agency
e. Purchased a list from an on-line list service
f. Did not acquire a list
g. Don’t know
15. Would you be likely to consider using a list from a partner company, and providing your
company list in exchange?
a. We don’t use lists or use only the company’s customer list
b. List quality important
c. Uncomfortable with sharing
d. Too much of a hassle to arrange co-operative deals
e. Other

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16. Regarding the role you play in selecting Website Services for your company. For each of the
items below, tell us what your individual involvement is in the purchasing process.
a. Advertising
b. Determine need to purchase
c. Evaluated various products/vendors
d. Authorised / approved purchases
e. Determined where to purchase
f. Placed orders
g. All of the above
h. Other

Consumer Evaluation of Advertisements
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_E

Advertising Evaluation Rating. The motivating power of each advertisement campaign on a 1 to 10
scale.
17. In respect of the company’s last or current advertising campaign, was the advertising:
a. Not at all motivating
b. Extremely motivating
c. About average for this type of product advertising

Focus Panels
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_E

In respect of the current (Test / Benchmark) advertisement campaign that promotes this company /
product / brand and current advertisement campaign of 14 competitive companies / products / brands:
18. After considering the advertisements, divide them into three groups. That is, arrange the
advertisements into those you:
a. Will watch over and over again
b. Might watch several times
c. Never want to watch again
19. What people, characters, or things stand out in the advertisements?
20. What thoughts and feelings is each person or character having during the advertisements;
and how do you know that?
21. What are some ways that the product enhances the situation being shown; and where in the
advertisement did you see, hear, or feel that?
22. What are some impressions that you take away from the advertisements?
23. Is that impression positive or negative?

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3 Suisses International Group - France
24. Here are listed several concepts or feelings. Pick out the concept or feeling you think is most
closely associated with the advertisements:
a. achievement and success
b. living an active and full life
c. making smart choices
d. freedom to be one's self
e. self-reliance
f. being accepted by others
g. caring for others, particularly the underdog
h. being young at heart and in appearance
i. personal security
j. being a good parent
k. making a better world
l. living a comfortable and contented life

25. Tell us about a situation in which you have consumed/used/bought/etc. the product and felt
like the people or characters shown in the advertisement.
26. After watching the test or benchmark advertisement. What people, characters, or things stand
out in the advertisement?
27. What thoughts and feelings is each person and character having during the advertisement?
How do you know that?
28. What does the advertisement say about the product? Where in the advertisement do you see,
hear, or feel that?
29. What parts of the advertisement don't seem to fit together? That is, parts of the advertisement
that causes some confusion or perhaps is distracting?
30. Pick out the concept or feeling you think is most closely associated with the advertisement.
a. achievement and success
b. living an active and full life
c. making smart choices
d. freedom to be one's self
e. self-reliance
f. being accepted by others
g. caring for others, particularly the underdog
h. being young at heart and in appearance
i. personal security
j. being a good parent
k. making a better world
l. living a comfortable and contented life
31. After seeing the company’s advertisement, tell me how strongly you think it will motivate
people like you to purchase the product during the next one or two weeks?
32. How do you rate the advertisement?
33. Why do you think it will motivate people like you to purchase the product?

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Consumer Opinion of Advertising Effectiveness
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_E

After seeing the company advertisements:
34. How well do you remember these advertisements?
a. Don't remember at all
b. Remember company but not product or advertisement
c. Remember company and product but not advertisement
d. Remember advertisement.
35. Other than trying to get you to buy the product or service, what is the main message of these
advertisements?
36. What did you like most about these advertisements?
37. What did you like least about these advertisements?
38. If you were describing this advertisement to a friend, would you say these advertisements
were:
a. Active
b. Attention-getting
c. Boring
d. Cheerful
e. Creative
f. Emotional
g. Energetic
h. Genuine/sincere
i. Honest
j. Humorous
k. Informative
l. Irritating
m. Memorable
n. Natural
o. Offensive
p. Pleasant
q. Satisfying
r. Strong
s. Unique
t. Warm-hearted
39. Indicate how descriptive the following statements are of you:
i.
Just like me
ii.
A lot like me
iii.
Somewhat like me
iv.
Not much like me
v.
Not at all like me
e. It is important to me to be treated well.
f. I like the "royal treatment" in stores
g. I have somewhat old-fashioned tastes and habits
h. I like my clothes to look up to date
i. I never have enough time to shop
j. I think I am a little bit wild
k. I think shopping is fun
l. I often buy things on impulse
m. I have lots of leisure time
n. I expect to have more money next year

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3 Suisses International Group - France
40. Based on the Product features advertised, and in the Company advertisements:
a. The advertisement message is understandable.
b. The advertisement is believable
c. The advertisement's message is relevant to me.
d. The benefits described in the advertisement are believable to me.
41. After viewing this advertisement, would you consider purchasing the product?
42. These advertisements are much better than other advertisements for competitive products in
this product category.
43. Indicate how descriptive the following statements are of you:
i.
Just like me
ii.
A lot like me
iii.
Somewhat like me
iv.
Not much like me
v.
Not at all like me
a. My world seems to be coming apart at the seams
b. I think I am a smart shopper
c. I like to be outrageous
d. I feel I get a raw deal out of life
e. I think a woman's place is in the home
f. I prefer stores where prices are always low
g. I never seem to have enough money
h. I regularly read newspapers
i. I have more money now than last year
j. When I shop, I just want to get it over with

Advertisement Evaluation Survey
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_E

Evaluation of TV, Newspaper, Print, and other advertisements viewed for the retail store:
44. Indicate your evaluation of Store Newspaper or Print advertisements:
a. Entertaining
b. Effective
c. Interesting
d. Attractive
e. Informative
f. Professional
45. Indicate your evaluation of Store TV, Radio, and Internet advertisements:
a. Attractive
b. Interesting
c. Informative
d. Professional
e. Entertaining
f. Effective
46. Indicate the number of friends, relatives or neighbours consulted while researching for this
product.
47. Indicate the number of TV or radio advertisements that you remember seeing during your
search for the product purchased.
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3 Suisses International Group - France
48. Indicate the number of Consumer reports that you reviewed in researching for the product
purchased.
49. Indicate the number of Newspaper or magazine advertisements that you remember seeing
during your search for the product purchased.
50. Where was the last place you saw or heard an advertisement for this Store?
a. newspaper
b. magazine
c. TV
d. Radio
e. Internet
f. Flyer
g. other
51. Which radio stations do you most often listen to?
52. What time of the day do you most often watch TV?
a. morning
b. afternoon
c. evening
d. late night
53. Which newspapers do you most often read?
54. Do you subscribe to cable, pay, or thematic TV?

General Customer Surveys - Advertising Perceptions
Customer Surveys of 3 Suisses International Group:
55.
56.
57.
58.

as an Excel file: Part_E

Advertising Posture: Store/Outlet Level
Advertising Posture: Company Level
Promotional Activity: Store/Outlet Level
Promotional Activity: Company Level

Consumer Marketing Test
Consumer Marketing Tests of products from 3 Suisses International Group:
Part_E
59. How does the Company’s product(s) rate on the following attributes?
a. Not At All Descriptive
b. Very Descriptive
i. High quality
ii. Expensive
iii. A brand I can trust
iv. Well built
v. A good value
60. What other brands of product(s) in this category have you used?
a. I haven't used the product(s), but I'm familiar with it.
b. I know nothing about the product(s).
61. What is it that you like about the product(s)?
62. What do you like least about the product(s)?
66

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3 Suisses International Group - France
63. What would be your main reason for buying the product?
64. Overall, how interested are you in buying this product if it were available?
a. Not at all Interested
b. Not Very Interested
c. Neither Interested nor Uninterested
d. Somewhat Interested
e. Very Interested
65. Which of the following best describes your need for this product?
a. I really need this product because nothing else compares.
b. This is a minor improvement over what I currently use.
c. It looks okay but is about the same as my existing product.
d. My current product would serve me better.
e. I do not need this product?
66. What price would you expect to pay for the product(s)?
67. Assuming the this product is priced comparably to other major brands, would you say it is:
a. Very poor value
b. Somewhat poor value
c. Average value
d. Fairly good value
e. Very good value
68. In what ways does the described product appear to be superior to other product(s) in this
brand category?
69. Overall, what would be your most important factors in choosing a product(s) in this category?
a. Value
b. Best performance
c. Good repair/Warranty service
d. Recognised brand name
e. High quality
f. Shopping convenience
g. Easy/fast service
h. Discount
i. Good sales personnel/dealer/outlet
j. Broad selection of products
k. Do not know
l. Other
70. Other than the product itself, which of the following would most influence you when deciding
to buy the product(s)?
a. Commentary in the media or on TV
b. Commentary on the Internet
c. Word-of-mouth
d. Sales/service representative
e. Industry publications
f. Advertising
g. Trade shows/events
h. Guarantee/warranty offers
i. Other

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3 Suisses International Group - France

Effectiveness of marketing initiatives
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_E

71. Are promotions attracting the right kind of visitor?
72. What is the impact of social versus print media?

Shopper behaviour is constantly changing and by understanding the response to different marketing
approaches and channels, one ensures the best value from the marketing budget.
Site Analytics enables one to capture the timings and category of marketing campaigns, alongside all
the critical site data to evaluate marketing within the context of key variables such as weather, time of
year and critical outcomes such as traffic and retailer sales lift.

Corporate Marketing Evaluation
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_E

In considering the overall direction of the company's marketing effort, how would you rate:
73. the company's vision and direction?
74. the overall company operations today, compared with a year ago?
75. the financial strength of the company?
76. the efficiency of workflow in the company?
77. the company's skill in marketing products?
78. the ability to develop strong consumer promotions?
79. the regular introduction of new products?
80. the introduction of new, innovative packaging?
81. the company's focus on improving customer satisfaction?
82. the quality of relationships with distributors?
83. the company's effectiveness with retailers?
84. the quality of the promotional activities?
85. the quality of the sales support materials?

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3 Suisses International Group - France

Part F : Store Experience
This data is available on a Corporate basis and on a Location/Site basis for 3 Suisses
International Group

Customers demand an in-store experience in return for shopping (in personal) at speciality retail
outlets; and increasingly at general retailers as well. The improvement of store-level operations is
often not a prime concern of senior corporate managers; however failure to be aware of the
expectations of customers will only damage profitability. An effective site operations program which
creates a differentiated (and hard for competitors to replicate) store experience will attract and hold
the attention of shoppers.
Delivering an experience that is satisfying to customers and differentiated from competitors drives
both repeat visits and improved store productivity. Conversely, a failure in satisfying the expectations
of a fulfilling experience will leave customers wanting to try competitive offerings; be that a new store
brand or an existing store brand with a new offer or promotion. Furthermore, a bad store experience
will generate a ripple of negative comments with that customer’s family, friends, and co-workers.
For every retail situation, the interaction with the customer represents a mosaic of perceptions,
neuroses (and indeed psychoses) on the part of the customer; within the container which represents
both the store environment and the actions of store personnel. The help the customer (indeed to help
the customer spend his or her money) the retailers must provide an appropriate store experience
which includes:Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_F

1. Product & Retail Offer design
2. Site Operations design
3. Support Program design

Whilst the Product & Retail Offer design presents to the customer the outward sign of the store
experience, this can represent a major investment for the retailer, and any defects may entail major
upgrades such as new layouts, a new visual image, and brand enhancements; and these often
require substantial capital investment and time commitment to execute. Likewise, customers perceive
the impact of offer Support Programs that might be introduced at a corporate level, however even the
best programs must be underpinned by effective and consistent on-site execution. Otherwise, the
retailer makes promises and offers in its advertising and other communications that many of the
outlets cannot fulfil for operational reasons. By contrast, Site Operations, can be rapidly improved and
this will yield improvements in the customer experience and result in improvements in revenues.
Reliable store performance to ensure a high level of customer store experience will lead to greater
customer loyalty, consistent repeat business, and more flexibility to expand the product offering.
The key to reliable store performance is properly selected, trained, and motivated employees who are
more productive, consistently more effective with customers, and more aware of store effectiveness
and performance. In such retail environments a retailer can expect like for like outlet revenues to be
25-50% greater than the average. Notwithstanding the fact that personnel performance
enhancements take time to implement, such improvements involve little or no capital outlays and help
differentiate a retailer’s stores from those of competitors.

Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_F

Retailers should consider and expect several factors to be critical to their operation:4. A consistent product offering from friendly and knowledgeable employees who quickly assist
and guide customers to the right products.
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3 Suisses International Group - France
5.
6.
7.
8.
9.
10.

Help and Advice with customer requests.
Consistent Product Quality
Spotless Store, Displays and Equipment
Good stock levels
Shelves and Displays kept uniformly tidy
Premium Pricing for a better store experience.

For retailers to excel in consistent site operations they must understand that sustained execution
requires more than just operations manuals and a full complement of staff.
Retailers must develop and use interconnected operating system with detailed and fully defined
processes that can deliver a consistent customer experience across the entire store chain.
Through clearly defined customer interaction scripts, detailed daily activities guides and employee
schedules, targeted hiring, training, and development, and a motivating career path and
compensation plan, employees have the tools and authority to truly focus on the customer and deliver
the right experience again and again.
Without a thorough store operating system, retailers (irrespective of enormous and creative
advertising, strong product offers, and high quality store designs) will be compromised.
Sales and profit margins may vary across a store network. Customer numbers and sales may vary by
200-300% across individual stores; however in trying to understand what accounts for performance
differences one might naturally look at individual store locations and customer traffic flow, local
competitive set and density, differences in size, layout, and age of store, and local marketing and
pricing. However retailers often fail to understand the impact on revenues from an inconsistent
customer experience.
Variances in customer store experience produce a 20-40% sales performance difference. In contrast
to the other factors, this portion of the difference is not structural and can be remedied rapidly and
effectively.

Retailers should use independent Mystery Shoppers and regular Customer satisfaction surveys to
monitor these dynamics.
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_F

Site operations:11.
12.
13.
14.
15.
16.
17.
18.

Defined operational processes.
Uniformity of site operations
Customer interaction training
Activity guides
Employee training & development
Employee compensation and motivation packages
Site monitoring systems
Customer satisfaction monitoring systems

Evidence of inefficient or dysfunctional behaviour in the site environment:19.
20.
21.
22.
23.
24.
25.
26.
27.

Lack of a consistent customer store experience at individual store level
Lack of a methodology for monitoring customer satisfaction at individual store level
Lack of a uniform, customer orientated, site operation
Lack of a methodology for updating operations and systems
Lack of internal planning and management coordination
Over-reliance on the store managers
Lack of monitoring of the performance of individual store staff
Lack of on-going staff training programmes
Ill-considered promotions, projects and initiatives which distract store staff from their prime
duties
28. Low value administrative tasks which could be automated at site level
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3 Suisses International Group - France
29. Senior staff not regularly spending time at store level serving customers
30. Senior staff not regularly visiting and shopping at franchisees’ stores
31. Senior staff not regularly visiting and shopping at competitors’ stores

Improving store-level operations usually yields a high return on investment and tends to increase
sales and margins by between 5-15%. Good quality site operation creates a sustainable competitive
advantage and differentiation, in addition to a reinforced culture of customer focus, motivated and
productive employees, and lower staff turnover. Such improvements benefit retailers of all sizes,
formats, and competitive positions and unlock latent value from store operations
The benchmark of all good retailers is the placing the customers at the very centre of the site
operation. However much managers may be involved in hiring staff, organisation, and maintaining
sites, the prime imperative must be the dynamic between customer and store experience. Retailers
cannot allow this vital relationship to vary store by store due to the vagaries of either inconsistent
store presentations or employee training. Managers must ensure that adequate systems exist which
provide staff-customer interaction guides, customer handling scripts, service tools, and explicit
systems which guarantees that employees know how to treat customers and create a consistent store
experience.
Senior corporate managers at retailers should maintain a regular and rigorous, critical assessment of
the current operations in order to identify if and where gaps exist with best practice.

Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_F

Checklist:32. Site-by-site performance review and customer satisfaction scores.
33. Site-by-site standard deviation analysis which would signal inconsistent execution.
34. Identification of the performance improvements that would be attained if the average store
improved performance to within 25% of the top 10 stores.
35. Identification of the ideal customer store experience.
36. Survey of store employees at individual sites which identify variations in their understanding
of the ideal customer store experience.
37. Review current store operating system to see whether it conforms to the three key
components of people strategies, store management, and customer interactions.
38. Clarify the key operating processes with those implementing them to understand whether
these processes actually support the desired customer experience.
39. Conduct unannounced store visits.
40. Observe customer interactions and experiences.
41. Clarify with employees what drives their daily actions and efforts to serve the customer.
42. Evaluate how consistently the preferred customer experience is being delivered by stores.
The above checklist will identify which activities are weak and which need to change, how many
employees will be involved, and the potential rewards to be achieved by upgrading site performance.

A professional product offerings and brand management are of course essential; however they must
be complemented by consistent site execution at each outlet.
Expert and Industry Appraisal of 3 Suisses International Group:
43. Product Offer design
44. Store concept and format innovation
45. Branding, image, and design
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3 Suisses International Group - France
46. Channel and brand management
47.
48.
49.
50.
51.
52.

Site and Network Operations
Roles and personnel staffing
Customer-facing activities
Site-management activities
Dealer/franchisee/distributor relationship management
Measurement and rewards

53.
54.
55.
56.
57.
58.

Offer support
Product or service offer pricing and management
Advertising, promotions, and CRM
Supply chain management
Network planning and real estate management
Administration and information Management

59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.

Store Visit checklist
Customer satisfaction
Customer satisfaction during past visits
Product mix
Service satisfaction
Display of products & POS
Employee attentiveness
Employee attitude
Employee product knowledge
Speed of service
Transaction handling
Store maintenance
Store cleanliness & tidiness
Consistence of service during peak times
Consistence of service during slack times

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3 Suisses International Group - France

Distribution channels
Retailers that operate franchise, license, or dealer distribution channels must seek to control the onsite operations of their distributors, especially in the matter of customer store experience.
Customers do not differentiate between one type of store operation and another, they only see the
store brand and they expect and demand a consistent level of customer service.
The most successful franchisors make sure that their franchise operating system and standards
enable the franchisees to execute the required customer experience.

Retailers distributing their products via third party outlets need clear guidelines for their distribution
channel:Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_F

74. Establish customer service standards which are formalised and part of the distribution
channel contract.
75. The customer’s store experience must be specified in manuals and training.
76. Performance targets must be set and monitored. These may include transaction speed,
staffing levels, and response times.
77. Site operating systems to help distributors recruit and train employees, define roles and
customer interactions, manage the store’s activities and staffing, and measure performance.
78. Distributor support systems and training.
79. Enforcement of standards amongst distributors. Formalised monitoring of site operations, for
example, mystery shoppers, customer intercepts, coaching audits, surprise visits, and
scorecards to ensure accurate feedback and corrective action.
80. A suitable compensation and reward system which incentives distributors to improve
performance.

Multi-channel consumers re-enforce the need for positive in-store experiences
Retailers are increasingly faced with two challenges, the growth in ever mobile consumers using a
variety of purchasing methodologies, and the ever more urgent need to attract consumers to a
physical store location.
In recent years retailers have engaged in initiatives to produce online retail purchasing opportunities,
and they have paid especial attention to the matter of mobile payments. However, if they fail to reinvent the in-store experience then they may as well shut up shop and become pure online retailers.
Some retailers have realised that rather than close stores they can strengthen and re-enforce their
brand by giving their outlets an upgrade and giving their customers a better store experience.
What is needed is not just a cosmetic facelift, but the re-inventing of the store brand by creating a
"brand story" to engage and involve a consumer in the shopping experience which will undoubtedly
include interactive elements, intuitive and futuristic store experiences, one-to-one digital dialogues
with customers, virtual shopping screens, audio/video presentations, Quick Response Code
integration and other ‘attention getting’ store displays.

The store experience must have the following elements:Expert and Industry Appraisal of 3 Suisses International Group:
81.
82.
83.
84.
85.
86.
87.

An Emotional Focus for the brand
Animation and movement
Channelling of consumer behaviour
Collaborative initiatives
Digital Interactive communication with customers
Digital Media integration
Events
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as an Excel file: Part_F

3 Suisses International Group - France
88.
89.
90.
91.
92.
93.
94.

Excitement
Innovation
Investment in Digital devices, POS and Display
Quality design concepts
Showcasing
Technology
The Beating Heart of the brand

With Main Streets and High Streets in decline, and evidence of tough times in shopping centres and
malls, it is becoming increasingly clear that retailers cannot simply sit back and wait for consumers to
pass their doors. Retailers have to develop their stores as Destinations. Consumers come to the store
not because they happen to be passing down the street, but because they are specifically attracted to
the store.
Retail multiples are bombarded with the constant noise and distraction of independents that open a
store with a local fanfare, distract the consumer, and then equally quickly disappear. These
independents, whilst being a nuisance, can act as a stimulus to established retail chains because the
independents often bring innovative approaches and interesting service offerings to consumers. The
retail chains can often learn from independents and apply the lesson across their network.
Multiples engage in gimmickry on an ad hoc basis from time to time. The Selfridge's department store
in London produced a "No-Noise" in-store promotion whereby they attempted to sell name brand
products with no logos. The store suggested that it was, "To help you find balance in this fast-paced
world… customers to find a moment of peace in a world where we are bombarded by a cacophony of
information and stimulation."
Burberry has used digital high tech for its brand of reinvention. The grand opening of its largest Asia
Pacific store dramatized its bad weather gear by making it virtually rain during its "Burberry World
Live" launch. Then Burberry turned its flagship London store on Regent Street into a "living website"—
a digitally-enhanced shopping experience that filled the 44,000-square foot space with innovations of
all kinds (including that previously debuted digital rain). In the Chicago store it hosted a local event
that continued the theme of "retail as theatre," incorporating digital media, entertainment and fashion.
These however are more evidence of over exuberant PR people rather than any real attempt to
produce meaningful in-store experiences.
More significant was when Marks & Spencer installed 10 virtual mirrors in their retail stores to coincide
with their virtual mirror application available on their website. Customers can see, in-store, how
cosmetics and make-up look against their skin, without actually applying the makeup. This uses
technology which helps the customer consider choices and possible combinations without the time
and inconvenience of the actual physical application of cosmetics.
The use of digital technology to display products, select products, pay for products and ultimately
deliver products to the customer will increase in the future and retailers should offer this as an option
to customers. The integration information provision to the customer and e-commerce is attractive to
many customers.
For the future there is the suggestion of the availability of ad hoc product designs, indeed in one
London shopping centre a company offers 3D printing which manufactures products to order. 3D
printing for general use may be some way away, but it is coming.
Similarly the use of new materials is also coming. Imagine the use of Graphene and other advanced
materials in a consumer context.

Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_F

To future proof their positions in the market retailers have to expand their thinking:95.
96.
97.

Product Offer and Network Strategy:
Channel and brand strategy
Customer experience development
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3 Suisses International Group - France
98.
99.
100.
101.
102.
103.
104.
105.

Customer segmentation and targeting
Franchise development
Loyalty program design
Market portfolio strategy and store-level investments
New consumer product development
New product offer development
The use of new manufacturing technologies
The use of new materials and technologies

Site and Network Operations:
106.
107.
108.
109.
110.
111.
112.
113.
114.

Cost reduction and productivity improvements
Detailed store market and customer analysis
Developing and implementing day-to-day operating processes
Economic and operational benchmarking
Site economic analysis
Store employee hiring, training, and management
Store operations best practices
Store-level technology
Supply chain management

Implementation:
115.
116.
117.
118.
119.
120.
121.
122.
123.

Advertising and promotions engineering
Customer-focused retailing culture
Franchisee management
Merchandising and offer development
New business launch
On-site pilot tests and execution
Performance measurement programs
Product and service pricing
Testing and learning tools

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3 Suisses International Group - France

Exterior Store Presentation

Identifiable Store Name
Consumers must perceive an effective store name which sets the tone and provides identification by
creating an image for the consumer.
The store name has to be easy to say and remember, and be indicative of the images and emotions
which the retailer wishes to implant into the consciousness of the consumer.
The store name should have longevity, and should not be too trendy or too associated with any
particular identification which may prove transitory and liable to become unfashionable.

Visual Trademarks
The retailer’s identifiable trademark and logo provides a visual image to trigger the consumer’s
memory recall of the store name. This is done with a combination of words, pictures, colour, shape,
typeface, texture and/or style to make the image prominent. The overall image of the store must be
Identifiable even in the absence of the store name (which might be obscured because of the viewing
angle or some obstruction. The successful trademark image should be unique, indicative of the
retailer’s products and services, and be consistent with the overall impression the retailer wishes to
imprint on the consumer.

Unmistakable Storefronts
Storefronts must provide instant recognition and memory recall, both at a distance and up close. The
use of a well-designed combination of exterior architecture, signing and window displays initially
ensures a powerful first impression, and thereafter reinforces that impression each time it is viewed by
the consumer.
Exterior Architecture
The store exterior look is often referred to as the architecture, and comprises of various
aspects such as building materials, architectural style and details, colours and textures.
The store’s architecture must accord with and reinforce the consumer’s expectation of the
retailer and the brand.
Store Signage
Store signage is the essential element of the storefront, identifying the retail brand and
encouraging consumers to patronise the store. The value of strong storefront signage cannot
be underestimated, both in terms of brand recognition and competitive advantage in a
crowded retail landscape.
Store Façade
The store frontage should entice and inform passing potential consumers. Consumers should
consult a store’s windows as they might look at the store’s catalogue or web site. The more
interest, movement and animation found in the store window the greater the effect on
potential consumers.
Vantage Point
The design of the storefront must consider the customer's vantage point, the speed of
passing foot and motorised traffic, and the opportunities available to attract the attention of
potential customers.
A storefront with a 90º angle of approach will very rarely be adequate, either in a street
location or a shopping mall. The direction of customer traffic flow is influenced by various
factors, site access points, the location of nearby parking or public transport, the nearby high
traffic volume venues, and the width of streets or shopping mall corridors, et cetera. All these
factors will influence how and from where consumers view the storefront. A good retail
storefront design will include modular elements which will allow individual storefronts to be
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3 Suisses International Group - France
customised for the particular location. Thus the design elements can be positioned to face left
right or head-on.

Store Entrance
The store entrance can be a barrier to entry or an invitation. The flow from the outside to the inside
should be effortless. Whereas street locations do pose questions of security, energy conservation and
the reduction of exterior nuisance; in shopping malls retailers can use wide and open entrances which
allow seamless entry from the mall to the store. Many retailers rely on impulse purchases and
therefore it is important to create an open storefront by removing physical barriers and providing an
unobstructed view into the store interior with a glass frontage. Removing barriers also includes
removing the clutter of notices, credit card signs, unrelated logos, and other muddle which tends to
build up in retail locations.
Those stores which require doors for climate control, security or because the store offering suggests a
need for intimacy, have less opportunity to attract impulse buyers; and therefore the task of a
welcoming store entrance is even greater. For such retailers, an unobstructed and welcoming
entrance accompanied with a well-designed window display is essential.

Consistent and Compelling Store Image
An impulse consumer will spend a couple of seconds scanning a store exterior before then trying to
scan the store interior through the storefront. Within less than 4 seconds that consumer will have
decided whether to enter the store or not.
In most instances, consumers are either on a mission to make a planned purchase, or is impulse
shopping for amusement, entertainment or ideas.
Some consumers may visit a retailer to make a premeditated purchase or they may decide to enter a
store because they are comparison shopping for something specific. For impulse buyers the decision
to enter a particular store rests with the reinforcement of their brand confidence in that the retailer,
and the assurance that in browsing they are using their time effectively.
Those with time on their hands are more inclined to enter a store impulsively, drawn by the overall
impression that the retailer may have something of interest to them. The external store image gives
them the impetus and the interest to enter.

Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_F

First impressions are derived from the Customer Surveys:
124.
125.
126.
127.
128.
129.
130.
131.
132.
133.
134.

Exterior Identifiable Store Name
Exterior Visual Trademark
Unmistakable Storefront
Exterior Architecture
Exterior Store Signage
Store Façade
Vantage Point
Store Entrance
Consistent and Compelling Store Image
Brand Hook
Positive impressions

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Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_F

The following parameters are examined in the Customer Surveys:
135.
136.
137.
138.
139.

Does the Exterior communicate to the customer who the retailer is, and what they sell?
Does the Fascia present the name, logo, corporate graphics and colours?
Is the Store entrance open, semi-open, funnel / recessed / lobby, standard door?
Is the Window display eye-catching?
Is the Orientation and Vantage point of the suitable?

140.
141.
142.
143.
144.
145.
146.
147.
148.
149.
150.
151.

How does the customer rate the Storefront?
How does the customer rate the Marquees or similar fittings?
How does the customer rate the Entrance/s?
How does the customer rate the Display Windows?
How does the customer rate the Height of Building?
How does the customer rate the Size of Building?
How does the customer rate the Signage?
How does the customer rate the Store Visibility?
How does the customer rate the Store Uniqueness?
How does the customer rate the Surrounding Stores?
How does the customer rate the Surrounding Areas?
How does the customer rate the Parking?

152.
153.
154.
155.
156.
157.
158.
159.

Is there sufficient Identification of Store Name?
Does the Store Identification set the tone of the store?
Does the Store distinguish itself in the customer’s mind?
Is the Store Name easy to say and remember?
Are there sufficient Visual Trademarks?
Does the Store Trademark provide a visual image to accompany a store name?
Does the Store Trademark combine words, pictures and styles to make it stand out?
Is the Store identifiable even without seeing store name?

160.
161.
162.
163.
164.

Is the Storefront Unmistakable?
Did the Storefront stop passing customers?
Does the Storefront provide instant recognition and recall?
Does the Storefront project a clear and concise image of what’s inside?
Does the Storefront use attractive exteriors, signage, and window displays?

165.
166.
167.
168.

How does the customer rate the Store Entrance?
Is the Store Entrance good in Mall situations?
Is the Store Entrance free of visual clutter?
Is the Store Entrance unobstructed and welcoming?

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3 Suisses International Group - France

Interior Store Presentation
Visual Look
The store front, and an interesting entrance way, helps in delaying the passing of customers; and
establishes a positive first impression which might lead to that customer entering the store. Once
inside, the store’s visual messages should create feelings of consistency or clarity. Consistent aisle
patterns, efficient merchandising and unambiguous signs support the overall brand image of the
store.

Visual Hook
A visual hook is analogous to the ‘hook’ in music that produces a hit tune. It is a refrain, often
repetitive, which calls attention to the store and re-enforces both the store brand and consumers
sentiments towards the brand. Powerful visual hooks are created integrating visual merchandising
components to give a more memorable impression. An exciting store presentation, effectively signed
product offerings, powerful interior displays, in-store animation or events, all help attract customers to
the store.
Effective visual hooks provide an impetus to consumers, especially the impulse buyers. By creating a
compelling hook for product offerings using the appropriate techniques a retailer can greatly increase
impulse buys and encourage passing trade. Increasingly brand hooks use sensory mechanisms for a
total image package.

Leveraging Positive Impressions
By creating a consistent positive impression in the mind of consumers they are able to recognise and
identify with particular store brands. This is especially important with retailers with multiple locations
which differ in size, shape, design and merchandise mix; here the creation of continuity of image by
having common elements throughout the chain is essential. By extending common exterior and
interior elements to all stores the retailer can leverage the investment and create an even more
durable store brand.
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_F

First impressions are derived from the Customer Surveys:
169.
170.
171.
172.
173.
174.
175.
176.
177.

Interior Identifiable as Store Brand
Interior Visual Trademark
Interior Unmistakable as Store Brand
Interior Fittings
Interior Signage
Interior Displays
Consistent and Compelling Interior Image
Brand Hook
Positive impressions

The following parameters are examined in the Customer Surveys:
178.
179.
180.
181.
182.
183.
184.
185.
186.
187.

Is the Store Look appealing?
How effective was the Visual Look?
Was the entrance inviting?
Did you have a positive first impression when you entered the store?
Was the store interior well organised and not confusing?
Were you able to navigate the store in a consistent and logical way?
Does the store have a Visual Hook with which you can identify?
How effective was the Visual Hook?
Did the Store Interior draw your attention?
Did the Store suggest that there was something interesting for you?
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3 Suisses International Group - France
188.
189.

Was the visual merchandising attractive?
Have you used other stores in the same chain?

190.
191.
192.
193.
194.
195.
196.
197.
198.
199.
200.
201.
202.
203.
204.
205.
206.
207.
208.
209.
210.
211.

Did you like the Store layout?
Was the floor plan logical?
Did you think the floor plan was small?
Did you think the floor plan was medium or average size?
Did you think the floor plan was large?
Did you like the Store’s interior in general?
What did you think about the interior finishes?
What did you think about the ceiling?
What did you think about the lighting?
What did you think about the displays?
Were the displays informative?
What did you think about the sales desk or counters?
Were there any sitting areas?
Would you prefer to stand or sit whilst waiting?
What did you think about the interior graphics?
What did you think about the advertising displays?
What did you think about the store image or branding elements?
What did you think about the product displays?
What did you think about the product dividers?
What did you think about the shelving or product stacking?
What did you think about the product accessibility?
Were the products displayed in a manner consistent with their value?

212.
213.
214.
215.
216.
217.
218.

What did you think about the Store Lighting in general?
Was the lighting level sufficient?
Did you see any faulty light fixtures with lamps burned out?
Was the lights properly aimed or directed?
Did the store have old-style or modern lighting?
Did the store have accent lighting to highlight particular products?
Should the store upgrade or modernise the lighting?

219.
220.
221.
222.
223.

What sort of Flooring did the store have?
Was the flooring dirty, stained, or ugly?
Was the flooring old or worn out?
Did the flooring need to be cleaned?
Should the store replace the flooring?

224.
225.
226.

What did you think about the Store Floor Plan?
Could you easily move though the floor pattern?
Should the store change the floor plan?

227.
228.
229.

What did you think about the Store Floor Colour Scheme?
How would you describe the Store Colour Scheme?
Should the store change or modernise the colour scheme?

230.
231.
232.
233.

What did you think about the Changing Rooms, Rest Rooms and other facilities?
Were the store’s facilities clean?
Were the store’s facilities decorated appropriately?
Should the store change or modernise their facilities?

234.
235.
236.
237.

What did you think about the Store Product Pricing system?
Are all products priced using a pricing system for a uniform appearance?
Are the prices attached in a consistent pricing channel?
Should the store change or modernise the Product Pricing system?

238.

What did you think about the Store Interior Signing?
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3 Suisses International Group - France
239.
240.
241.
242.

Did the Store Interior Signing reinforce the Store Brand?
Did the store have old or obsolete signs displayed?
Did the store have inconsistent or confusing signs displayed?
Should the store change or modernise the Store Interior Signing system?

243.
244.
245.
246.
247.

What did you think about the Store Maintenance and General Appearance?
Did you notice any badly maintained areas?
Was the sales area clear of miscellaneous paraphernalia?
Were the staff untidy?
Were the product displays badly maintained?

248.
249.
250.
251.
252.

What did you think about the store in General?
Were you comfortable spending time in the store?
Were you comfortable spending your money in the store?
Would you be happy taking your family to the store?
Would you be happy taking your friends to the store?

Ambience & Layout
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_F

First impressions are derived from the Customer Surveys:
253.
254.
255.
256.
257.
258.
259.
260.
261.
262.
263.
264.
265.
266.
267.
268.
269.
270.
271.
272.
273.
274.

How would you describe the Store Ambience and Layout
What did you think about the store Lighting
What did you think about the store Music
What did you think about the store Signage
What did you think about the Store Front
What did you think about the store Display Windows
What did you think about the store Scent or Smell
What did you think about the store Fixtures
What did you think about the store Temperature
What did you think about the store Hygiene
What did you think about the store Theme Setting
What did you think about the store Posters, Signals, cards
What did you think about the store Floor Space
What did you think about the store Product Grouping
What did you think about the store Traffic Flow Pattern
What did you think about the store Colours used
What did you think about the store Personnel Behaviour
What did you think about the store Personnel Product Knowledge
What did you think about the store Payment systems
What did you think about the store availability of other facilities
What did you think about the overall store Style
What did you think about the overall store Friendliness

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3 Suisses International Group - France

POS & Displays
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_F

First impressions are derived from the Customer Surveys:
275.
276.
277.
278.
279.
280.
281.
282.
283.
284.
285.
286.

What did you think of the Store Display Lighting?
Did the Store Displays have any Motion or Animation?
Were the Store Displays Customised or did they appear to be Standard?
Did the Store Displays have any noticeable Features?
Could you see into or inspect the product content of Store Displays?
Were the contents of the Displays Visible?
Did the Store Displays send a Message, E.g. product quality or product value?
Were the Store Displays well Designed?
Did the Store Displays have a Unity or were they Confused?
Were the Store Displays in Proportion to the Store and to the other Store Fittings?
Were the Store Displays a Focal point of the store?
Did the Store Displays encourage you to spend more or less than you had intended?

Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_F

Audit of Retail POS & Displays by Expert Observation Surveys:
287. Degree to which Displays make it into shoppers’ line of sight.
288. Identification of the Display types and locations that generate the most impressions and
greatest consumer activation.
289. Amount/percentage of time spent engaging with the Displays (by audit variables such as
display type, location, and placement).
290. Degrees to which the Displays are noticed, stopped at, interacted with, and drive
purchases.
291. What is the emotional response (valence) to the Displays?
292. What is the shopper’s track or path throughout the store?
293. What are the search patterns and navigational strategies shoppers use to find and select
products? How much time is spent considering the product categories?

Display Type:
294.
295.
296.
297.
298.
299.

Floorstands
Endcaps
Powerwings / sidekicks
In-line / gondola / full-line merchandisers (specialty)
In-store media
Digital signage

Location of each display:
300.
301.
302.
303.

End of aisle (front or back)
Perimeter / racetrack
In-aisle
Front end

Placement of display:
304.
305.

Primary
Secondary

Variables:
306.
307.

Category and brand the display is advertising
Static vs. Motion
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3 Suisses International Group - France
308.
309.
310.

How was the Product positioned
Whether it is interactive
Whether it has video or audio

Lighting
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_F

First impressions are derived from the Customer Surveys:
311. What did you think about the Store Lighting?
312. Was the Store Lighting too little?
313. Was the Store Lighting too much?
314. Was the Store Lighting too intrusive?
315. Was the Store Lighting too hot?
316. Was the Store Lighting warm?
317. Was the Store Lighting cold?
318. Was the Store Lighting too coloured?
319. Did the Store Lighting display the products well?
320. Was the Store Lighting designed to hide the products?
321. Did the Store Lighting allow you to see the product colours or textures or details well
enough?
322. Could the Store Lighting be improved?
323. How could the Store Lighting be improved?

Store Facilities
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_F

First impressions are derived from the Customer Surveys:
324.

Did the store have any additional Facilities?

325.
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
o.
p.
q.
r.

Which additional Facilities did you use in the store:After-sales services
Arranged appointments
Baby strollers or Baby Changing facility
Baby-sitting or Children’s Area
Beauty salon
Bridal registry
Credit or store card facilities
Delivery service
Fitting rooms
Free (or low-cost) parking
Gift vouchers
Gift wrapping
Information counters
In-house designers
Loyalty cards or schemes
Personal shoppers
Refreshments
Repair services
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3 Suisses International Group - France
s.
t.
u.
v.
w.
x.
y.
z.
aa.
bb.

326.
327.
328.

Rest rooms
Restaurant or cafeteria
Samples
Shopping bags
Specialist advisers
Storage
Telephones
Ticket outlets
Valuation services
Water fountains

Were you happy with the additional Facilities provided?
Was there excessive Self-Service?
How could the Facilities be improved?

Store Image
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_F

First impressions are derived from the Customer Surveys:
329.
330.

Do you think that the store has a particular Image?
How would you characterise the Image?

331.
332.
333.
334.
335.

Did the store Image meet your expectation of the Store Brand?
Were you happy with the store Image?
Did the store Image confirm the Retailer’s Product Quality?
Did the store Image confirm the Retailer’s Product Value?
Did the store Image confirm the Retailer’s Product Brand/s?

336.
337.
338.
339.
340.
341.
342.
343.

What is your mind is the personality of the store?
What is the Image of the types of merchandise or services sold?
What is the Image of the Quality of the store?
What is the Image of the Sales Associates?
What is the Image of the Product Packaging?
What is the Image of the Colours of the décor?
What is the Image of the Fixtures and Equipment?
What is the Image of the Music, Lighting, Scent?

344.
345.
346.
347.

What is the Image of the Store Name?
What is the Image of the Visual Trademark?
What is the Image of the Store Front?
What is the Image of the Store Look?

Conversion Rates
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_F

Derived from the Customer Surveys:
348.
349.
350.

Did the Exterior of the store influence your decision to enter the store?
Did the Interior of the store influence your decision to look at the products?
Did your experience of the store influence your decision to purchase?

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3 Suisses International Group - France

Overall Store Evaluation
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_F

First impressions are derived from the Customer Surveys:
351.
352.
353.

What ranking do you give to your First Impression of the Store (1 to 10)?
What ranking do you give to the Store after your first impression (1 to 10)?
What ranking do you give to the Store in comparison to the competitors (1 to 10)?

Derived from the Customer Surveys. Customer Ranking of the Retail Site (1 to 10):
354.
355.
356.
357.
358.
359.
360.
361.
362.
363.
364.
365.
366.
367.
368.
369.
370.
371.
372.
373.
374.
375.
376.
377.
378.
379.
380.
381.
382.
383.
384.
385.
386.
387.
388.
389.
390.
391.
392.
393.

The store's location in your community
The store's physical location in the neighbourhood and street
The location and amount of parking available to customers
The physical appearance of the store's parking lot
The store's architectural design
The exterior colour of the store
The location and size of store windows
The location and size of store doors
The accessibility of the store for the physically handicapped
The size and location of the outside store identification signs
The graphic design of the outside store identification signs
Lighting of the outside store identification signs
Outside lighting around the store and parking areas
Outside store security
Landscaping around store and parking areas
Overall outside appearance
Window treatments
Types of window displays
The overall store layout
Aisle spacing for handicap access
The interior design of the building
The interior wall, floor and ceiling colours
The floor covering
The interior fixtures and display areas
The interior lighting
Adequate heating and air conditioning
Rest room facilities
Location of a customer service area
Availability of a customer courtesy telephone
Availability of water, coffee, beverages and snacks for customers
Play area, toys and activities for children
The organisation of the product displays
Demonstration area for products
Product information displays and counters
Display of specific products
Service department layout and access
Integration of technology with product displays
Use of product packaging in display areas
Storage of inventory
Overall housekeeping and visual appeal

Customer suggestions revealed during Customer Surveys:
394.
395.
396.
397.
398.

Changes to the look of the store
Changes to the feel of the store
Changes to the layout of the store
Changes to the physical entry and access points
Changes to the store displays
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3 Suisses International Group - France
399. Changes to the product offerings
400. Changes to the product quality
401. Changes to the product values

Store Personality Survey
Customer Surveys of 3 Suisses International Group:
402.

as an Excel file: Part_F

Retail store personality variables.

403.
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
o.
p.
q.

Select the scale that best indicates the way you would describe the store.
Good selection
High prices
High quality
High fashion
Good service
Easy to shop in
Friendly
Good sales and promotions
Sophisticated
Traditional
Different
Take chances
Confident
Creative
Sociable
Stands out in the crowd
Simplified lifestyle

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3 Suisses International Group - France

Part G : In-store Customer Purchasing Behaviours
This data is available on a Corporate basis and on a Location/Site basis for 3 Suisses
International Group

In-store and Impulse-buying Decisions
Understanding the needs, purchasing behaviour, and changing lifestyles of consumers is critical in
being able to deliver on their immediate and future needs. Whereas consumer decisions are no longer
limited to in-store product exposure, shoppers are making an overwhelming number of their
purchasing decisions in-store. In developed countries the in-store decision and impulse-buying rates
are over 40% of purchases. Notwithstanding consumers being increasingly mobile, social and in
control of their information sources, in-store decisions and impulse-buying seems to be here to stay.
The consumer’s route to a purchase has changed, with online information, smartphones, shopping
apps, mobile coupons, and many other innovations; however in-store marketing at many different
types of stores categories and brands has maintained the connection with consumers whom continue
to be influences at the point-of-sale.
The effectiveness of the In-Store Experience, the in-store environment, merchandising and displays,
will indicate tangible improvements to in-store purchasing decision rates.
Three key components affect the in-store decision rate factors:


Generally planned purchases
Brand or Product substitution
Unplanned purchases

Research shows that an important part of the marketing mix is the use of materials and devices that
stimulate sales where the action is – the point of purchase.
The decision-making process of shoppers frequently does not occur until they actually see a product
in the store. Therefore, the way a product is displayed in a store and is supported by in-store
marketing materials can often be instrumental in leveraging sales.

Purchasing Behaviours
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_G

1. Goal orientated behaviours
a. Like to get exactly what they set out for
b. Aim is to complete shopping trip as rapidly as possible
2. Research & Planning behaviours
a. 40% of shoppers use pre-store media to plan their trip.
b. 55% of shoppers make a shopping list whether mental, handwritten, or digital.
3. Hunter Gatherer behaviours
a. Enjoys seeing what new products are available while shopping the store.
b. Enjoys getting ideas while shopping.
4. Product Offering and Selection behaviours
a. Overall product quality, good service, quick checkout and value are the most
important considerations for shoppers when choosing a retailer.
5. Value seeking behaviours
a. Willing to wait for sales
b. Will shop multiple retailers for best prices
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3 Suisses International Group - France

Consumer Store Behaviours
When consumers enter a store they are not so much revealing where they like to shop, but a complex
matrix of their own lifestyle, values, interests, social orientation, work and spare time activities, income
levels, and so forth.
This matrix which defines the consumer is very variable and it is increasingly difficult for retailers and
brand manufacturers to pigeon-hole their customers into stereotypical groups.
Predictive shopper profiles are based on the consumers’ stated preferences, their browsing habits,
and the products that they actually purchase or abandon in their shopping trips.
Consumers are clustered into segments to understand the attributes and characteristics that are most
important to individuals as they decide where and when to shop. Consumer surveys investigate a
broad set of lifestyle and shopping characteristics on graded scales and these are correlated and
analysed to create consumer groups based on their demographic, lifestyle and shopping parameters.
These factor groupings form the basis of the creation of consumer segments, which can be analysed
for shopping behaviour patterns, price sensitivity, retailer preferences, retailer loyalty, demographic
differences, and opportunities for conversion.
These consumer segments have unique attributes and patterns of behaviour as they relate to their
shopping patterns and retailer selection. Data seems to suggest that there are four basic profiles
which should be of concern to retailers:

Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_G

6. Time conscious consumer
a. Lifestyle time stressed
b. Get in and get out of the store quickly.
c. Pressure from not having enough time in store
d. Always in a hurry
e. Not in a low income group
f. Perceived budgetary constraint
g. 18-44 demographic group
h. Full time employed
i. No time for circulars or coupons
j. Tends to use a limited number of retailers
k. Random navigation of store
l. Describes self as easily tempted
m. Shops with children
n. Does not often use a written list.
o. Second highest purchases on impulse
p. Highest total basket average
7. Time available consumer
a. Shopping is a hobby or social event
b. Very suggestible and influenced by retailers’ promotional activities
c. Enjoys shopping
d. Likes to look at new products
e. Likes browsing in the store
f. 55+ demographic group
g. Lower disposable income
h. Heavy use of circulars which drives retailer choice
i. Knows many retailers and is not very retailer local
j. Random navigation of store
k. High receptivity to stores with quality private label products
l. Receptive to retailers with a variety of product types and package sizes
m. Most satisfied shopper on for overall satisfaction
n. Describes self as impulsive and easily tempted
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3 Suisses International Group - France
o. Highest purchases on impulse
p. Makes most weekly trips
q. Spend longest time in store
8. Necessity consumer
a. Shopping trip is always organised
b. Purchasing goals
c. Time goals
d. Shopping trips executed according to plan
e. Male 55+ demographic group
f. Low circular use
g. Tends to use few retailers
h. Seeks familiarity with store layout
i. Planned navigation of store
j. Most retailer loyal
k. Most consistent use of written list
l. Not interested in bargain hunting
m. Describes self as controlled and restrained
n. Most accurate in predicting total spend
o. Lowest purchases on impulse
p. Least number of trips per week
q. Shortest time in store
9. Cost conscious consumer
a. Seeks best buys and lowest prices
b. Willingness to shop around for the lowest price
c. 14-24 demographic group
d. Least retailer loyal
e. Highest circular use
f. Highest coupon use
g. Most likely to use pre-store media to plan trip
h. Least satisfied on overall satisfaction score
i. Homemaker, Housewife, House husband, Single parent family, One person
household, demographic
j. Most likely to Not purchase an item which was Not budgeted for pre-store
k. Lowest total basket average

In-store Consumer Decision Making
Locations of consumer Purchasing Decision Making.
Retailers should be aware of how and where their customers are making a majority of their purchase
decisions.
Purchases should be segmented into categories and then analysed for in-store purchase decision
rates. This provides an indication of what purchases shoppers’ anticipate as opposed to what they
actually purchase.
The four categories that purchases are classified into are:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_G

10. Specifically planned: Purchases the shopper specifically identified by name or brand, before
entering the store, and which they then actually purchased in-store.
11. Generally planned: Purchases that were referred to generically, before entering the store, but
not bought by particular brand.
12. Unplanned: Purchases that were not mentioned, before entering the store, and were bought
on impulse.

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3 Suisses International Group - France
13. Substitutes: Purchases that were specifically identified by name or brand, before entering the
store, but the actual purchase reflected a substitute of brand or product.

The in-store decision rate is calculated by taking the sum of the purchases that fall under Generally
Planned, Unplanned, and Substitutes categories. The average in-store decision rate, across all retail
sectors, in developed countries, is about 40%.
The suggestion that shoppers are planning their purchases less, and deciding more at the shelf, is not
strictly accurate as more shoppers are stating that they did not find what they were looking for when
they entered the store. This means that the product, brand or size of the article they were seeking
was not available and thus they had to purchase something else, or go to another store.
When shoppers do make an impulse purchase this is usually not because of ‘impulsiveness’ but
because it was a purchase of something that they had forgotten and they remembering that they
needed or wanted an item once in the store. The second reason for impulse buys was because
shoppers say that the item was on sale or at a lower price than at a competitive store.

Consumer Surveys
In-Store Purchase Process and Evaluation Survey
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_G

14. In general, do you feel that prices are:
a. Much too high
b. Somewhat high
c. About right
d. Do you believe prices are particularly high in your area
e. Do you think high prices are due to greedy companies
f. Do you think high prices are due to taxes
g. Do you think high prices are due to supply companies setting high prices
h. Do you think high prices are due to the laws of supply and demand
i. Do you think high prices are due to prices which always go up seasonally
j. Do you think high prices are due to other factors
15. Thinking about the last several years, how often do you buy premium products?
a. Always
b. Frequently
c. Sometimes
d. Seldom
e. Never
16. Think about the stores you go to most often. Is they closer to:
a. Your home
b. Your place of work
c. Your favourite shopping area
17. About how many minutes does it take to get to the store you go to most often?
d. Under 5 minutes
e. 5-10 minutes
f. 10-15 minutes
g. 15-20 minutes
h. More than 20 minutes
18. Think about the store you go to most often. What are some reasons this store is your
favourite?
a. Convenient location
b. Convenient hours of operation
c. Close to work
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3 Suisses International Group - France
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
o.

Close to home
Close to favourite shopping area
Lowest prices
Fast payment
Fast in and out
Happy with brands
Never had trouble with their products
Have a credit card for that brand of store
Like the products
Friendly service
Force of habit
Other

19. In an average month, about how much does your total household spend on the product?
20. Do you have a Store or a Store-linked card?
21. What are the three best features you would expect to get with a store card?
a. Generous grace period
b. Bonus rewards for frequent purchases
c. Low interest rate
d. Use for several different companies
e. Easy to get one
f. End of year rebate
g. Free gifts
h. Promotions

Shopper Involvement Study
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_G

Indicate your agreement with each of the following statements:
i.
ii.
iii.
iv.
v.
vi.

Very Strongly Agree
Strongly Agree
Agree
Disagree
Strongly Disagree
Very Strongly Disagree

22. At the time of the purchase decision, I had little time to search for information.
23. There was a wide difference in performance between the available choices.
24. Because the product was being offered on sale for a limited time period, I felt I needed to
purchase the item quickly.
25. If this product broke down I would feel that replacement or repair was a high priority.
26. My (our) budget was very tight at the time of the purchase.
27. I felt obligated to make a careful analysis of the alternatives before making a selection.
28. I have one or two favourite stores I shop in for this type of purchase.
29. I felt it was necessary to talk to a number of friends or family because of my lack of
knowledge and expertise about this product category.
30. I felt I would obtain a better deal on this item by shopping around and comparing prices.
31. I like to devote considerable time and energy when making a product choice such as this one.
32. Selecting an appropriately styled product was very important to me.
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3 Suisses International Group - France
33. I can make many connections or associations between the use of this product and
experiences in my life.
34. I was very concerned about possible product problems when searching for the item I
purchased.
35. Using the product I purchased is one of the most enjoyable things I do.
36. I did not have any favourite brands in this search category before beginning my search.
37. I felt quite knowledgeable about this product category before I began shopping for it.
Indicate your agreement with each of the following statements.
i.
ii.
iii.
iv.
v.
vi.

Very Strongly Agree
Strongly Agree
Agree
Disagree
Strongly Disagree
Very Strongly Disagree

38. There were wide price differences between available choices.
39. I received considerable pressure from other family members to purchase this item quickly.
40. This purchase was difficult because the items in this product category are so technologically
complex.
41. This purchase was not planned, but the item caught my eye in the store and I decided to
purchase it.
42. It was my task to make the product choice the right one.
43. The amount of money I could or would spend on this item was very limited.
44. I felt comfortable judging the differences between alternatives relatively well.
45. I generally make purchases of this kind at one particular store because I believe they offer the
best values around.
46. I enjoyed shopping for this product.
47. I was very concerned about the economic consequences of making a poor or incorrect
choice.
48. Generally I like to make purchases quickly without shopping around at different stores,
because it just is not worth my effort.
49. I am concerned about my friends' approval of my choice.
50. Because of my lifestyle, I feel this is a product that ought to be important to me.
51. I was very concerned about my product choice because of the consequences of selecting an
item that did not perform as I anticipated.
52. I believe I could be quite helpful to friends who are having difficulty making a selection in this
product category.
53. I had a strong brand preference in this category because of my previous experience with
some of these brands.

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Store Entry Surveys
Shoppers are randomly interviewed at the entrance of the store locations. Interviews are conducted
during all day parts and all days of the week with a nominal duration of 10 minutes per interview.

Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_G

54. Planned purchases (unaided category and brand planning)
55. Any pre-store path-to-purchase activities shopper engaged in for planned purchases and in
general
56. Amount budgeted/expect to spend for planned items and total basket
57. General shopping behaviours in channel
58. Demographics and profiling information
Upon completion of the pre-entry interview, shoppers were asked to return to the researchers after
completing their shopping trip for a post-shopping interview. Information products purchased was
recorded and the purchase record for each shopper was obtained through electronic capture of till
receipts. The exit interview recorded products and brands purchased from shopper’s entire basket.

Customer Surveys of 3 Suisses International Group:
59.
60.
61.
62.
63.
64.

as an Excel file: Part_G

Products purchased (category and brand level information)
Coupon, circular, mobile phone use, etc. used in purchase decisions
Recall/awareness of displays for product purchases
Attitudes and perceptions towards retail environment and specific categories.
Total amount spent and by category.
Method of payment

Survey research methods measure contemplative opinions of the respondents and rely on techniques
such as surveys or facilitated focus groups. For accuracy one need a valid sample size which is
usually in the range 500-1500 valid responses.

Store Audit
In preparation for the customer surveys the store layout was surveyed and each day an audit of
specific display types throughout the store was conducted prior to the start of interviewing. The
purpose of the store audit is to record and identify the display materials which produce a measureable
impact on customer decision-making and emotional response.
The store audit includes, a traffic flow pattern, an aisle schematic, photographs and spatial position of
each display present as well as coding of the following information:

Expert and Industry Appraisal of 3 Suisses International Group:
65. Display Type:
a. Floorstands
b. Endcaps
c. Powerwings/sidekicks
d. In-line/gondola/full-line merchandisers (specialty)
e. In-store media
f. Digital signage
66. Location of each display:
a. End of aisle (front or back)
b. Perimeter/racetrack
c. In-aisle
d. Front end
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as an Excel file: Part_G

3 Suisses International Group - France
67. Placement of display:
a. Primary
b. Secondary
68. Other variables:
a. Category and brand the display is advertising
b. Static vs. motion
c. Product on it vs. no product
d. Whether it is interactive
e. Whether it has video or audio

Supplementary research
Researchers and mystery shoppers equipped with smartphone and mobile applications which could
register reactions are able to analyse the impact of displays:-

Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_G

69. Degree to which displays (as defined earlier) make it into shoppers’ line of sight.
70. Identify the display types and locations that generate the most impressions and greatest
activation.
71. Amount/percentage of time spent engaging with these displays (by audit variables such as
display type, location, and placement).
72. Degrees to which these displays are noticed, stopped at, interacted with and drive purchases.
73. What is the emotional response (valence) to these displays?
74. What is the shopper’s track or path throughout the store?
75. What are the search patterns and navigational strategies shoppers use to find and select
products?
76. How much time is spent considering these categories?

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3 Suisses International Group - France

Part H : Customer Handling
This data is available on a Corporate basis and on a Location/Site basis for 3 Suisses
International Group

First Impressions Customer Survey
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_H

First impressions are derived from the Customer Surveys:
1. What did you think of the store opening hours?
2. What did you think of parking availability?
3. What did you think of the shopper-friendliness of the store layout?
4. What did you think of the salespeople?
5. What did you think of the politeness of the store staff?
6. Did you have to wait too long before being served?
7. What did you think of the checkout lines and queues?
8. Did you have to wait too long before being able to finalise your purchases and leave the
store?
9. What did you think of the payment & credit acceptance?
10. What did you think of the delivery policies?
11. What did you think of the amenities?
12. What did you think of the customer follow-up?
13. What did you think about complaints handling?

Queue & Waiting handling
Queue performance is a very important issue for retailers and those who get sales desk staffing
wrong, or have lengthy queues risk creating a poor store image which can harm sales. Customers
hate and avoid queuing and will typically avoid retailers where queues are common.
If shoppers are in a store where they see long queues at the checkout they can be deter from making
full use of their shopping time or budget; indeed they may abandon their planned purchases
altogether and go to another store. Retailer should have empirical evidence of average wait times and
overall transaction times at each location.
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_H

Audit of Retail Sites by Expert Observation Surveys:
14. Observations reveal staff schedules are determined by changing customer demand and
trading patterns.
15. Observations reveal that the retailer predicts the optimum number of tills needed to open in
15 to 30 minute time slices to maintain a desired service level.
16. Observations reveal a correlation between wait times and conversion rates to help capitalise
on every opportunity.
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3 Suisses International Group - France
17. Observations reveal that the retailer is probably aware of the optimum ratio of till staff to
customers at which marginal sales exceed the incremental staffing costs.
18. Observations reveal that the retailer is using traffic detectors at store entrances and till points
to monitor shopper numbers and queuing behaviour.
19. Observations reveal that the retailer is able to calculate average queue lengths, wait times
and transaction times.

Interface & Dialogue
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_H

Derived from the Customer Surveys:
77. Did the salesperson smile when greeting you?
78. Did the salesperson use age-appropriate and gender-appropriate greetings?
79. Did the salesperson avoid using negative stereotypical phraseology when referring to
customers or fellow employees?
80. Was the salesperson proactive and ask how he/she may be of service?
81. Was the salesperson immediately visible and available?
82. Did the salesperson hover or make you feel uneasy?
83. Did the salesperson turn away, walk away, or become occupied when you approached?
84. Did the salesperson give precedence over you when someone else approached or to take a
phone call?
85. Did the salesperson seem to take regard of your age, gender or appearance?
86. Did you see evidence of food and beverages left by employees?
87. Did the salesperson mention an upcoming break or other call on his/her time?
88. Were any salespersons making personal calls within the earshot of customers?

Staff Response & Attitude to Customers
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_H

Derived from the Customer Surveys:
89. Do you think that the salesperson was able to read the body language of customers?
90. Did the salesperson let chatty customers monopolise their time while leaving other customers
waiting?
91. Did the salesperson call for backup support when lines were forming?
92. Was the salesperson discrete in relation to credit and payment arrangements?
93. Did the salesperson discuss your personal details in front of other customers?
94. Did the salesperson inspect merchandise before bagging it to make sure it was not defective
or the wrong size?
95. Did the salesperson make sure that you received everything you paid for before leave the
store?
96. Did the salesperson smile at you and say goodbye and encourage you to come again?

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3 Suisses International Group - France

Information Provided to Customers
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_H

Derived from the Customer Surveys:
97.

Did the salesperson seem to lack knowledge about some aspect of the product or
business?

98.

Did the salesperson offer to find out about anything which he/she was uncertain about?

99.

Did the salesperson offer to go to the stock room and try to find it an item which was not on
display?

100. Did the salesperson offer to call another store or order an item not in stock?

Proficiency
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_H

Derived from the Customer Surveys:
101.
102.
103.
104.
105.
106.
107.
108.
109.
110.
111.
112.
113.
114.
115.
116.
117.
118.
119.
120.
121.
122.
123.
124.
125.
126.
127.
128.
129.
130.
131.
132.
133.
134.
135.
136.
137.
138.
139.
140.

Credibility: Store/Outlet Level
Credibility: Branded Specialities
Credibility: Company Advertising
Credibility: Company Level
Credibility: Company Offers & Promotions
Credibility: Counter Staff
Credibility: Dedicated Specialities Staff
Branded Product Information: Store/Outlet Level
Branded Product Information: Company Level
Branded Product Information: Counter Staff
Branded Product Information: Dedicated Specialities Staff
Staff Awareness of Product: Branded Specialities
Staff Awareness of Product: Counter Staff
Staff Awareness of Product: Dedicated Specialities Staff
Staff Comprehension of Product: Branded Specialities
Staff Comprehension of Product: Counter Staff
Staff Comprehension of Product: Dedicated Specialities Staff
Staff Confidence in Product: Branded Specialities
Staff Confidence in Product: Counter Staff
Staff Confidence in Product: Dedicated Specialities Staff
Staff Efficiency: Store/Outlet Level
Staff Efficiency: Branded Specialities
Staff Efficiency: Company Level
Staff Efficiency: Counter Staff
Staff Efficiency: Dedicated Specialities Staff
Staff Efficiency: Offers & Promotions
Staff Efficiency: Problem Solving
Staff Integrity: Advertising & Promotions
Staff Integrity: Store/Outlet Level
Staff Integrity: Branded Specialities
Staff Integrity: Company Level
Staff Integrity: Counter Staff
Staff Integrity: Dedicated Specialities Staff
Staff Integrity: Offers & Promotions
Staff Performance: Store/Outlet Level
Staff Performance: Branded Specialities
Staff Performance: Company Level
Staff Performance: Counter Staff
Staff Performance: Dedicated Specialities Staff
Staff Performance: Offers & Promotions
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3 Suisses International Group - France
141.
142.
143.
144.
145.
146.
147.
148.
149.
150.
151.
152.
153.

Staff Performance: Overall Customer Handling
Truth & Honesty: Advertising & Promotions
Truth & Honesty: Store/Outlet Level
Truth & Honesty: Branded Specialities
Truth & Honesty: Company Level
Truth & Honesty: Counter Staff
Truth & Honesty: Dedicated Specialities Staff
Truth & Honesty: Offers
Reputation at Store/Outlet Level
Reputation at Company Level
Reputation of Branded Specialities
Reputation of Counter Staff
Reputation of Dedicated Specialities Staff

Staff Interaction with Customers
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_H

Derived from the Customer Surveys:
154.
155.
156.
157.
158.
159.
160.
161.
162.
163.
164.
165.
166.
167.
168.
169.
170.
171.
172.
173.
174.
175.
176.
177.
178.
179.
180.
181.
182.
183.
184.
185.
186.
187.
188.
189.
190.
191.
192.

Verbal Contact: Store/Outlet Level
Verbal Contact: Branded Specialities
Verbal Contact: Company Level
Verbal Contact: Counter Staff
Verbal Contact: Dedicated Specialities Staff
Written / Internet / Telephone Communications: Store/Outlet Level
Written / Internet / Telephone Communications: Branded Fashion
Written / Internet / Telephone Communications: Company Level
Written / Internet / Telephone Communications: Counter Staff
Written / Internet / Telephone Communications: Dedicated Fashion Staff
Written / Internet / Telephone Communications: Promotions & Offers
Contract Documentation: Store/Outlet Level
Contract Documentation: Company Level
Counter Staff Customer Handling: Store/Outlet Level
Counter Staff Customer Handling: Branded Specialities
Counter Staff Customer Handling: Company Level
Counter Staff Customer Handling: Counter Staff
Counter Staff Customer Handling: Dedicated Specialities Staff
Customer Awareness of Product: Store/Outlet Level
Customer Awareness of Product: Company Level
Customer Comprehension of Product: Store/Outlet Level
Customer Comprehension of Product: Company Level
Customer Confidence at Store/Outlet Level
Customer Confidence at Company Level
Customer Confidence in Branded Specialities
Customer Confidence in Company Advertising
Customer Confidence in Company Offers & Promotions
Customer Confidence in Counter Staff
Customer Confidence in Dedicated Specialities Staff
Customer Confidence in Product: Store/Outlet Level
Customer Confidence in Product: Company Level
Customer Handling: Store/Outlet Level
Customer Handling: Branded Specialities
Customer Handling: Company Level
Customer Handling: Counter Staff
Customer Handling: Dedicated Specialities Staff
Customer Problem Solving: Store/Outlet Level
Customer Problem Solving: Branded Specialities
Customer Problem Solving: Company Level
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3 Suisses International Group - France
193.
194.
195.
196.
197.
198.
199.
200.

Customer Problem Solving: Counter Staff
Customer Problem Solving: Dedicated Specialities Staff
Customer Service: Store/Outlet Level
Customer Service: Branded Specialities
Customer Service: Company Level
Customer Service: Counter Staff
Customer Service: Dedicated Specialities Staff
Customer Service: Offers & Promotions

Customer Complaint Handling
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_H

Derived from the Customer Surveys:
201.
202.
203.
204.
205.

Customer Complaint Handling: Store/Outlet Level
Customer Complaint Handling: Branded Specialities
Customer Complaint Handling: Company Level
Customer Complaint Handling: Counter Staff
Customer Complaint Handling: Dedicated Specialities Staff

Product Returns & Refund Policy
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_H

Derived from the Customer Surveys:
206.
207.

Satisfaction with Existing Retailer’s Returns Policy
Satisfaction with Existing Retailer’s Refund Policy

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3 Suisses International Group - France

Part I : Selling Strategies
This data is available on a Corporate basis for 3 Suisses International Group

Stores
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_I

The following parameters are examined by Expert Appraisal:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

Brand Management
Product Management
Marketing & Selling Activity
Store Presentation & Merchandising
Product Offering Specifications & Characteristics
Product Quality Control
Retail Developments
Customer Handling
Product Sourcing & Control
Financial Controls
Staff Training / Control & Relations
Product Throughput Capacity & Control
Supply System Control & Development
Distribution Control
Product Handling Systems & IT

Online Selling
Globalisation and technology is at the heart of future growth. Retail is increasingly a global business,
bringing about changes in consumer wealth distribution and the manner in which their demands are
met. A middle class with disposable incomes is now to be found in many developing countries and
this has altered the landscape of retail distribution, with the need to service both domestic as well as
overseas consumers.
As input materials prices, wages and transportation costs fluctuate, and as currency rates shift around
the world, there is a dynamic within the retail supply chain in relation to where goods are
manufactured, how they are distributed, and how they are shipped to their final consumers. Retailers
increasingly have to turn their focus away from domestic consumption, and to the complexity of crossborder sales, made even more complex due to different platforms of selling internationally to more
sophisticated global consumers.
Over 25% of online shoppers around the world (mainly the younger demographics in the developing
countries) made their first online purchase within the two years. Furthermore consumers in the rapidly
developing economies are shopping online nearly four times as often as those in the post-industrial
developed countries. Social media also allows people to research or follow specific retailers or brands
without limits on borders. Each of these trends, as they continue to evolve globally, creates both direct
and indirect impacts on how bricks-and-mortar stores are perceived in different countries.
Each year some 50 million consumers in the Asia-Pacific region will join the ranks of online
consumers. By 2020 these new consumers will be spending an amount equivalent to that spent by
consumers in developed countries now. E-commerce sales growth in the Asia-Pacific countries is
increasing at greater annual rates than those in developed countries. The reason for this is not only
the nature of the consumer demographics in these countries, but also the deficiencies in the nature
and distribution of traditional retailers.
As e-commerce and mobile commerce and supporting infrastructure accelerates around the world, it
is encouraging new distribution channels in developing markets. Multinational retailers can test the
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3 Suisses International Group - France
water by opening an online store in untested overseas markets before committing to a physical
presence which involves considerably greater capital investment.
Multi-channel access to existing and potential customers (from bricks-and-mortar to catalogues to
online and mobile) is an important consideration when making a market entry, and establishing a
presence separate from physical outlets is a useful and relatively risk-free strategy given that local
companies are already likely to control the prime retail sites.
The consumer’s retail store expectations and perception in new markets must be well deliberated and
planned, however new stores in new markets can operate as flagship locations, primarily in high
traffic and high impact destinations, and also take on the role of directly ‘show casing’ the retailer's
product offerings. Such flagship locations can then act as a template for future expansion and
examples to franchisees and joint-ventures.
It is essential for multinational retailers to fully understand consumers in different markets, and their
different expectations, preferences and needs. Then use this knowledge to produce market plans for
multi-channel sales execution. Consumers in all locations want the same thing, a simple, seamless,
trouble-free purchasing experience. This might lead to increasing levels of complexity for retailers;
however such complexities are easily solved by technological solutions.
Whilst technology may expand commerce in developing markets, logistics infrastructure may not
adequately enable retailers to keep the pace with demands and this might result in a reduction in the
consumer purchasing experience. The inability of domestic logistics service providers to fulfil high
volumes of customer parcel shipping at low costs and within a reasonable delivery timeframe
dramatically impacts the direct-to-customer channel in many areas. Therefore, retailers have to
establish their own distribution networks or rely on outsourced express shippers in order to achieve
fulfilment efficiencies.
Various impacting factors in transnational retailing include rising transportation and energy costs,
fluctuations in currency values, the shipment modes, pricing and timing, and so forth. These factors
require retailers to adapt the way their goods are transported from source supplier to final sales
destinations.
Retail trade buyers who are unable to use sea transport due to lengthy shipping times are turning to
supply sources geographically closer. In addition as transport costs rise in addition to labour rates in
Asia there is ever more need to find alternatives to supply sources. Reasonable priced and more
quickly delivered domestic supply sources are increasingly more important for many retailers. Indeed,
with production closer to demand, retailers can more easily interact with product designers and
suppliers and thereby respond immediately to trends and changes in buying patterns.
As consumers around the world increase their reach and capacity to spend, fulfilling their demand for
retail products and brands is becoming very complex. As information technology and communications
becomes widespread around the world, from developed economies to emerging and developing
markets, retailers encounter new challenges as well as the ability to profit from new opportunities.
Finding and using the right channels, methodologies and business models will be essential in tapping
this potential.
Multi-channel retailing has opened up new markets; both in developed and developing countries, and
online sales are growing strong both in developed and developing countries. However, supply chain
disruptions will undoubtedly occur and therefore retailers must pre-plan and add diversification to their
business model to mitigate these risks as much as possible.

Online Selling Performance:
Expert and Industry Appraisal of 3 Suisses International Group:
The following parameters are examined by Expert Appraisal:
16.
17.
18.
19.
20.
21.

Brand Management
Product Management
Marketing & Selling Activity
Product Offering Specifications & Characteristics
Product Quality Control
Online Developments
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as an Excel file: Part_I

3 Suisses International Group - France
22.
23.
24.
25.
26.
27.
28.
29.
30.

Customer Handling
Product Sourcing & Control
Financial Controls
Product Throughput Capacity & Control
Supply System Control & Development
Distribution Control
Product Handling Systems & IT
Delivery Promptness
Complete Delivery

Web Presence
Retail website, product and satisfaction survey:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_I

31. How often do you visit the company’s site?
a. Every day
b. Several times a week
c. Several times a month
d. About once a month
e. Less than once a month
f. Never visited
32. How did you get to the company’s site?
g. I knew the site name
h. Search engine
i. Guessed the address
j. Saw on TV, heard on radio
k. Newspaper or magazine advertisement
l. Friend told me
m. Internet advertisement
n. Link from another page
33. How often do you use the web to find product information?
o. Everyday
p. Several times a week
q. About once a week
r. Several times a month
34. Did you find what you were looking for on the company’s site?
s. Yes, I found exactly what I was looking for
t. Yes, but not the brand/size/colour/ etc.
u. I found a related product but not what I wanted
v. No, I didn't find what I was looking for
35. If you did not find exactly what you wanted, explain where you found it.
36. Do you have one or two specific suggestions about how we should add to or improve the
site?

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3 Suisses International Group - France

Website Design
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_I

General Website Evaluation of the retailer:
37. Did the menu of items on the home page make sense to you?
38. If no, what would you like to see changed?
39. Did you experience any problems downloading files?
40. Approximately how many pages did you browse during this visit?
41. How satisfied are you with your experience with the web site?
42. If you are not totally satisfied, describe the reasons for your dissatisfaction below?
43. What additional information or features would you like included on the web site?
44. How frequently do you visit the company’s website?
a. Once only
b. Daily
c. Weekly
d. Monthly
e. Infrequently (less than once a month)
45. What prompted your visit on the last occasion?
f. Doing research for work
g. Doing research for school
h. Recommendation of friend/associate
i. Just curious
j. Found the site while surfing
k. Wanted to download files
l. Looking for update on earlier information
m. Professional development
n. Linked from other site
o. Other
46. How would you rate yourself as an Internet user?
p. Expert
q. Good
r. Beginner

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3 Suisses International Group - France

Website Information Quality
Quality and completeness of web site documentation and information:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_I

47. Were you able to find suitable answers to your questions while browsing the website?
48. How much time did it take to find your answer?
a. A lot less than I expected
b. Less than I expected
c. About what I expected
d. More than I expected
e. A lot more than I expected
49. Based on your experience, how would you rate the quality of the company’s website?
f. Very high quality
g. High quality
h. Average
i. Below average
j. Unacceptable
50. Tell us what can be done to improve the quality of the information on the company’s website?

Website Customer Evaluation
Company Website visit history, success in finding products searching for, and satisfaction.
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_I

51. How often do you visit the company’s site?
a. Every Day
b. Several Times a Week
c. Several Times a Month
d. About Once a Month
e. Less than Once a Month
f. I have never visited the site
52. How did you get to the company’s site?
a. I knew the site Name
b. Search Engine
c. Guessed the Address
d. Saw on TV, Heard on Radio
e. Newspaper or Magazine advertisement
f. Friend Told Me
g. Internet advertisement
h. Link from another Page
53. How often do you use the web to find product information?
a. Everyday
b. Several Times a Week
c. About Once a Week
d. Several Times a Month

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3 Suisses International Group - France

54. Did you find what you were looking for on the company’s site?
a. Yes, I found exactly what I was looking for
b. Yes, but not the Brand / Size / Colour / Etc.
c. I found a related product, but not what I wanted
d. No, I didn't find what I was looking for
e. Other
55. If you did not find exactly what you wanted, explain what you were looking for.
56. How likely are you to recommend and revisit the company’s site?
a. Very Likely
b. Likely
c. Unsure
d. Unlikely
e. Extremely Unlikely
f. Other
57. Do you have a suggestion or recommendation to improve the company’s site?
58. How likely are you to return to the company’s Web site?
59. How likely are you to recommend the company’s Web site?

60. What features had influenced your decision to continue using the website?
61. What is it about the site that you would most like to see improved?
62. What changes or additional features would you suggest for the website?

63. In a typical week, how many hours do you spend visiting this website?
a. 0 to 1
b. 1 to 2
c. 2 to 4
d. 4 to 10
e. More than 10
64. How did you first hear about this site?
a. Search engine
b. Another web site
c. Newspaper/magazine article
d. Friend or business associate
e. Advertisement
f. Don't know/don't remember
g. Other

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3 Suisses International Group - France

Website Visitor Follow-up
Demographics, how did the visitor find the site, what are they look for, hobbies, access, suggestions.
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_I

65. How did you find out about the company’s site?
a. Followed link from another web page
b. Followed a graphical banner/icon from another web page
c. Found by using a search engine
d. Saw postings to www-related news groups
e. Received e-mail from mailing list
f. Was told URL by friend
g. Read about it in newspaper/magazine
h. Don't remember or Other
66. What is your age?
a. under 13
b. 13-17
c. 18-34
d. 35-49
e. 50-64
f. 65 or older
67. How many hours per day are you on-line?
a. 0-1
b. 1-2
c. 2-3
d. 3-4
e. 4-5
f. More than 5
68. What do you enjoy doing in your spare time?
a. Theatre or cinema
b. Hunting
c. Sports
d. Reading
e. Video / Computer Games
f. Movies
g. Fishing
h. Arts and Crafts
i. Automobiles
j. Trivia
k. Restaurants
l. Gardening
m. Cooking
n. Computers
o. Other
69. What do you use the internet for?
a. Information Gathering
b. Academic Research
c. Shopping
d. Games
e. News
f. Sports News
g. Real Estate
h. E-mail
i. Job Hunting
j. Classifieds
k. Stock Market
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3 Suisses International Group - France
l.

Other

70. From where do you most often access the Internet?
a. Home
b. School
c. Office
d. Leisure site or Other
71. If you have, or plan to purchase goods on the Internet, what kinds of goods would you be
most interested in?
a. Food
b. Clothing
c. Household goods & articles
d. Electricals & Electronic products
e. Computers or peripherals
f. Software
g. CDs/DVDs
h. Flowers
i. Concert tickets
j. Travel
k. Fast food
l. Books or magazines
m. Services
n. Financial & Insurance product

Website Feedback
Website feedback and respondent Internet usage:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_I

72. Rate the company’s web pages for the following aspects:
a. Homepage
b. Customer Support information
c. Product information
d. Contact information
e. Downloads
73. What were your reasons for your last visit to the company’s site?
a. Product information
b. Customer Support information
c. Competitive information
How likely are you to?
74. Revisit this site on a regular basis
75. Recommend the company’s site
76. Where did you hear about the company’s website?
a. Online or link from another web site
b. Online news service
c. Newspaper or magazine
d. Friend
e. Search engine
f. E-mail advertisement
77. How often do you visit the company’s site?
a. Every day
b. Several times a week
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3 Suisses International Group - France
c.
d.
e.
f.
g.

About once a week
Several times a month
About once a month
Less than once a month
Never visited

78. When browsing the company’s site, how long do you typically spend here?
79. How frequently do you surf the web?
a. Every day
b. Several times a week
c. About once a week
d. Several times a month
e. About once a month
f. Less than once a month
g. Not sure (don't keep track)
80. In a typical week, how many hours do you spend surfing?
81. What do you regularly use the web for?
a. News
b. Work research
c. Personal research
d. Investments
e. Shopping
f. Auctions
g. E-mail
h. Chat/communities
i. Web-based address book/calendaring
j. Banking
82. How often have you used the web to gather product information?
a. Every day
b. Several times a week
c. About once a week
d. Several times a month
e. About once a month
f. Less than once a month
g. This is my first time
83. When do you plan to purchase a product via the internet?
a. Immediately
b. Within the next week
c. Within about a month
d. Within 3 months
e. Within 6 months
f. Within a year
g. More than a year
h. Not sure
84. What is your primary use of the product(s) / service(s)?
a. For work
b. For home
c. For school

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3 Suisses International Group - France

Web Demographics
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_I

85. How did you find about the company’s site?
a. Followed a text link from another web page
b. Followed a graphical banner/icon from another web page
c. Found using a search engine
d. Saw posting on a newsgroup
e. Guessed the URL address
f. Was told URL by friend
g. Read about it in a newspaper/magazine
h. Remembered to participate from last survey
i. Don't remember
86. How long have you been using the Internet (including using e-mail, gopher, ftp, etc.)?
a. Less than 6 months
b. 6 to 12 months
c. 1 to 3 years
d. 4 to 6 years
e. 7 years or more
87. What is your primary language (i.e., the one you speak most of the time)?
88. This is a sensitive question that can help Internet developers to understand the needs of
current web users - it is not intended to offend.
a. Are you disabled or impaired?
b. Rather not say
c. Vision impaired
d. Hearing impaired
e. Motor impaired
f. Cognitively impaired
g. Not impaired
89. How frequently do you access the internet from the following places?
a. Home
b. Work
c. School
d. Leisure location
e. Other
90. Who pays for your Internet access?
a. Self/spouse
b. Parents
c. Work
d. School
e. Don't know
f. Other

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3 Suisses International Group - France

Internet Shopper
Study benchmarking internet use and shopper profiles and behaviour:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_I

91. Did you personally make, influence, or participate in any purchases on the Internet during the
past 3 months?
92. About how much in total did you spend on those purchases:
93. About how much of this was spent on gifts for others:
94. What types of products did you purchase on the Internet?
a. Groceries
b. Software
c. Books or magazines
d. Computer hardware
e. Music, CDs, recordings
f. DVDs
g. Home Electronics
h. Travel (airlines, car rentals, hotels)
i. Clothing
j. Flowers
k. Tickets (concert, movies, etc.)
l. Services (insurance, legal)
m. Other items
n. Other services
95. About how much did you & all other people in your household spend for gift-giving during this
past 3 months?
96. Overall gift purchases, in total:
97. About how much of that was spent on:
a. Purchases at local retail stores:
b. Purchases through mail-order catalogues:
c. Purchases on the Internet:
98. About how many hours per week is a computer in your home usually used on-line for e-mail
or the Internet?
99. How many hours per week is spent on your home computer:
a. personally on-line for e-mail or Internet access
b. personally for purposes other than on-line access
c. by someone else on-line for e-mail or Internet access
d. by someone else for purposes other than on-line access
100. Think about your own personal use of a computer in your home just during the last 3
months. About how often did you use it for each of the following activities?
i.
Daily
ii.
2-3 times a week
iii.
Once a week
iv.
2-3 times a month
v.
Once a month
vi.
Under once a month
vii.
Not at all
a. Check or send e-mail messages
b. Look at financial information (stocks, trends)
c. Read on-line news or magazines
d. Conduct business-related work
e. Visit Internet sites related to my hobbies
f. Visit auction sites
g. Visit other retail sites looking for merchandise
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3 Suisses International Group - France
h.
i.
j.
k.
l.
m.
n.

Visit sites looking for tickets or reservations
Play games
Look for job opportunities
Find & view photographs, clipart, or images
Search for or download software
Chat on-line
Visit message news-groups

Below are some statements of people’s attitudes toward the Internet.
“Which best indicates how well the statement describes you personally. “
“Even if you don’t use the Internet, from what you may have heard about it, which best
reflects your impressions. “

How well does the statement describe you?
101.

I think on-line buying is (or would be) a novel, fun way to shop.

102.

I like the help & friendliness I can get at local stores.

103.

For me, shopping in stores is a hassle.

104.

I think Internet shopping would avoid the hassle of local shopping.

105.

Local stores have better prices & promotions than Internet stores.

106.

I’d have a hard time searching the Internet to find what I need.

107.

I don’t think Internet stores carry things I want.

108.

I dislike the delivery problems & backorders of Internet buying.

109.

I find the Internet ordering process is hard to understand & use.

How well does the statement describe you?
110.

I don't want to give out my credit card number to a computer.

111.

I think Internet shopping offers better quality than local stores.

112.

I don't know much about using the Internet.

113.

I often go to the Internet to preview products.

114.

I would like not having to leave home when shopping.

115.

I like it that no car is necessary when shopping on the Internet.

116.

I often go to the Internet for product reviews or recommendations.

117.

I like having products delivered to me at home.

118.

I want to see things in person before I buy.

How well does the statement describe you?
119.

I think Internet shopping offers better selection than local stores.

120.

I don’t like having to wait for products to arrive in the mail.

121.

None of my friends shop on the Internet.

122.

I would shop on the Internet (more) if the prices were lower.

123.

I dislike the idea of shipping charges when buying on the Internet.
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3 Suisses International Group - France
124.

I often buy using lay-away or store payment programs.

125.

I think local stores have better service policies than Internet stores.

126.

I always search for the lowest price in just about everything I buy.

127.

I worry about my credit card number being stolen on the Internet.

How well does the statement describe you?
128.

I want my purchases to be absolutely private.

129.

Buying things on the Internet scares me.

130.

I often return items I have purchased.

131.

It would be a real hassle to return merchandise bought on-line.

132.

I think the Internet offers lower prices than local stores.

133.

It’s hard to judge the quality of merchandise on the Internet.

134.

I like the ‘energy’ & fun of shopping at local retail stores.

135.

I enjoy buying things on the Internet.

136.

I like browsing on the Internet.

137.

I like to go shopping with my friends.

138.

I just don’t trust Internet retailers.

How well does the statement describe you?
139. When it comes to promoting causes, I am a doer & not just a talker. I use the Internet to
actively support causes that make people or communities better.
140. I hate repetition & I don’t want the same old thing. I am excited by a million web pages to
explore.
141. In today’s competitive world, you make dust or eat dust. I use the Internet to make me more
competitive.
142. I want my family to run smoothly & I use the Internet to make me & those I love more
productive & successful.
143. Internet games unlock my imagination & help me to meet interesting people & do neat stuff.
144. Hobbies are a very important part of my life. I use the Internet to expand my world of
fascinating hobbies, interests, & activities.
145. I am fascinated by art, culture, & knowledge from around the world. I use the Internet to
explore art & culture.
146. I consider myself an expert on the computer. When people have questions about the
Internet, I always have the answer.
147. I have lots of friends & stay close to my family. I spend a lot of time on the Internet writing
family & friends with e-mail.
148. On-the-job productivity is the key concern for me. I use the Internet to help me get more
done with the time & energy I have to spend on work-related activities.
149. I use the Internet to meet interesting people. I watch chat rooms & participate with people
on topics I find interesting.
150. I love using the Internet to shop. It’s fun & easy.

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151. For some people the following things are hard; but not for others. Tell us which are hard for
you:
a. Sending or reading email messages
b. Using word-processing programs
c. Installing computer software
d. Configuring computer drivers
e. Fixing a system (e.g., Windows) problem
f. Installing an operating system (e.g., Windows)
g. Browsing the Internet
h. Using an Internet search engine
i. Making a purchase on the Internet
j. Finding the best price on the Internet
k. Using an Internet shopping App
l. Finding Internet-retailer ratings

How well does the statement describe you?
152. It is important to me to be treated well
153. I like the ‘royal treatment’ in stores
154. I have somewhat old-fashioned tastes and habits
155. I like my clothes to look up to date
156. I never have enough time to shop
157. I think I am a little bit wild
158. I think shopping is fun
159. I often buy things on impulse
160. I have lots of leisure time

How well does the statement describe you?
161. I expect to have more money next year
162. My world seems to be coming apart at the seams
163. I think I am a smart shopper
164. I like to be outrageous
165. I feel I get a raw deal out of life
166. I think a woman's place is in the home
167. I prefer stores where prices are always low
168. I never seem to have enough money
169. I regularly read the newspaper
170. I have more money now than last year
171. When I shop, I just want to get it over with

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Online Purchases
Customer Surveys of 3 Suisses International Group:
172.

as an Excel file: Part_I

a.
b.
c.
d.
e.

How many online purchases have you made in the last month?
None
1-4
5-10
11-15
16+

a.
b.
c.
d.
e.

For whom do you primarily shop for online?
Yourself
Family members
Friends
Business
Other

a.
b.
c.
d.
e.
f.
g.

What is your most important consideration when shopping online?
Product selection
Competitive prices
Convenience
Promotions
Ease of use
Security
Other

a.
b.
c.
d.
e.
f.
g.

When you purchase online, you purchase for:
Holidays
Birthdays
Special Events
Personal Interests
Travel
Business
Other

173.

174.

175.

176.

What are the top two Product or Special Interest Group sites you visit?

a.
b.
c.
d.

Before starting this survey, how familiar were you with the company’s website?
Not familiar
Heard of website
Visited website
Made purchases

a.
b.
c.
d.
e.
f.

How did you hear about the company’s website?
Did not hear about it
In store advertising
Friend or family
Advertising
Referred by another website
Other

177.

178.

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a.
b.
c.
d.
e.
f.

How many times did you visit the company’s website over the last month?
Never
1-3
4-6
7-10
11+
Don't remember

a.
b.
c.
d.

How beneficial is the idea of the company’s website to you?
Not beneficial
Somewhat beneficial
Beneficial
Very beneficial

179.

180.

181.

Which item would you be interested in purchasing from the company’s website?

182.

Given the item you have specified, now how beneficial might the website be to you?
a. Not beneficial
b. Somewhat beneficial
c. Beneficial
d. Very beneficial

183. If you were buying a GIFT, which items on the company’s website would you consider?

a.
b.
c.
d.
e.

How many purchases have you made at the company’s website over the last year?
None
1-3
4-6
7-10
Don't remember

a.
b.
c.
d.
e.
f.

How would you describe your experience visiting the company’s website?
Never visited site
Poor
Mediocre
Neutral
Good
Excellent

184.

185.

186.

Do you have any comments or suggestions for the website?

187.

How satisfied are you with the product(s) purchased?
Overall quality
Value
Purchase experience
First use experience
Usage experience
After purchase service (warranty, repair, help desk)

a.
b.
c.
d.
e.
f.

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3 Suisses International Group - France

188.
a.
b.
c.
d.
e.
f.

How long have you used the product(s)?
Less than 1 month
1 to 6 months
6 months to 1 year
1 to 2 years
2 years or more
Never used

a.
b.
c.
d.
e.
f.
g.

How often do you use the product(s)?
Once a week or more often
2 to 3 times a month
Once a month
Every 2-3 months
2-3 times a year
Once a year or less often
Do not use

a.
b.
c.
d.
e.

Overall, how satisfied are you with the product(s)?
Very Unsatisfied
Unsatisfied
Somewhat Satisfied
Very Satisfied
Extremely Satisfied

189.

190.

191.
Compared to other product(s) in this category that are available, would you say that
the product(s) is:
a. Much better
b. Somewhat better
c. About the same
d. Somewhat worse
e. Much worse
f. Don't know or never used
192.
a.
b.
c.
d.
e.
f.

Will you use/purchase the product(s) again?
Definitely will
Probably will
Might or might not
Probably will not
Definitely will not
Never used

a.
b.
c.
d.
e.
f.

How likely are you to recommend the product(s) to others?
Definitely will recommend
Probably will recommend
Not sure
Probably will not recommend
Definitely will not recommend
Never Used

193.

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194.
Based on your experience with the product(s), how likely are you to again buy a
Company Product?
a. Very Unlikely
b. Unlikely
c. Somewhat Unlikely
d. Very Likely
e. Extremely Likely
195.
If you have contacted customer service, were all problems resolved to your complete
satisfaction?
a. Yes, by the company or its representatives
b. Yes, by me or someone outside the company
c. No, the problem was not resolved
d. No problems / No contact with customer service

Multi-channel Retail Distribution
As technological and communications devices become more commonplace, consumers have been
able to adapt how they shop, how they make purchasing decisions and what they expect and demand
from retailers. Differentiation between purchasing channels, from mobile, to online, to retail store, is
quickly disappearing. Coupled and complementary with this phenomenon are the innovations being
made within the logistics and distribution industry, which are providing important solutions for
suppliers and retailers to bring products to consumers across the world.
Consumers have at their disposal substantial product and pricing information and competitive
offerings are only a few clicks away. When consumers shop online they expect their orders to be
processed immediately and shipped to their home within a few days. Retailers tend to believe that
when consumers are in the store they can easily check for a lower price, however the research shows
that consumer are more confident in finding lower pries online.
Where retailers with physical stores can out-perform online sales is in the provision of a buying or
store experience and in the provision of purchasing gratification and other emotional needs.
Consumers now find themselves with a ‘perfect market’ as they have more information on prices and
sources of supply; thus they have become more demanding. Albeit in gathering this information, and
making electronic based purchases, they also willing reveal a huge amount of information about
themselves and their purchasing habits. Retailers are increasingly harnessing this information to
convert more sales and to efficiently move product within their supply chains, especially as consumer
behaviour continues to develop and evolve along with technology. The tactics and strategies
employed by online and traditional retailers alike are changing the way goods are moved, stored and
sold; and indeed they are changing the way retailers choose and use physical sites from distribution
centres to retail stores.
The advent of e-commerce has entirely changed the retail trade. Technological has led to an increase
in information availability, and use of this data has given consumers the ability to shop regardless of
either their location or the location of the retailer. The result is that the retailer must be everywhere: on
the consumer’s smartphone, at their home and office and at the traditional retail site. The economic
downturn, the destruction of much private wealth and disposable income, the restriction of credit
availability, and the pressure on household budgets have influenced consumer buying trends in terms
of what consumers buy, how much they are willing to pay, and from where they will source their
purchases. Consumers are not indifferent about how they make purchases. By contract, retailers
must find ways to meet consumer demand regardless of the sales channel, while also providing a
level of experience, customised product delivery and overall satisfaction to support continued sales.
This new retail landscape and consumer demands require retailers to re-think and revise their
strategies. This pattern is being repeated, with greater force and urgency, in the developing countries
and consumer behaviours and demands are converging across the world.
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The retail environment has gone from single channel (retail sites or online) to multi-channel or omnichannel. All retailers now have to consider a multi-channel approach to the market.

Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_I

The following parameters are examined in the Customer Surveys:
196. Order online for home delivery
197. Order online and pick up in store
198. Visit the store and order online via a kiosk
199. Visit the store and shop the retailer’s website via their mobile phones
200. Visit the store and shop on another retailer’s website
201. Visit the store, compare prices, and find the product at another physical store at a lower
price

Consumers perceive few boundaries in their shopping behaviours and retailers need to find efficient
and effective ways to manage the intricate logistics involved in serving consumers.

Whether retailers fully appreciate these changes in the retail distribution world is debatable and one
must analyse the technological developments and the implications for order fulfilment.

Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_I

202. Growth in e-commerce and its influence on the movement, storage and sale of
merchandise from production through consumer
203. The impact of technology on the supply chain and consumer behaviour
204. The increasing pace of trend cycles and inventory management which affect all parts of the
retail supply chain
205. The changing nature of retail in a global shopping environment

Stand-off Online Sites
Stand-off online sites are those used by retailers to liquidate or dump obsolete or remaindered stock.
These are usually sites which are not identified as being connected with the retailer’s main brand and
thereby they do not impact on or contaminate the retailer’s main stream offerings.
Stand-off sites can also include shops on EBay, Amazon, and other third party sites.
Retailers should incorporate sales on such sites with their existing inventory control and order
fulfilment.

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Events & Promotions
Most successful retailers organise Events and Promotions at least six times per year because this
reminds customers to come back to the store. By keeping customers interested, and getting them
excited about shopping at the store, more customers visit more often.

Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_I

206. Sales goals should be set for each promotion and a bonus reward should be offered to
each salesperson that reaches their goals.
207. Effective planning to have enough staff on hand to make the events run effectively.
208. Sufficient or additional inventory. Special items and assortments.
209. Evaluating the best promotional days and months. Selection of days and months that you
drive the most traffic to the store.
210. Detailed planning of the event and systemisation of the process.
211. Effective planning of advertising and direct mail.
212. Press release effectiveness.
213. Event ‘Hook’ that draws the attention of potential visitors quickly before the direct mail is
lost.
214. Creating an excitement that it triggers a ‘Fear of Loss’ in the customer’s mind.
215. Effective Event or Promotion Theme different to competitors.
216. Social Media to generate word of mouth advertising.

Loyalty Schemes
Customer loyalty schemes are an effective way to improve your customer-retention levels. The high
cost of bringing in new business compared to retaining existing clients is undisputed, thus increasing
customer retention can significantly boost bottom-line profits. Notwithstanding, many companies are
missing a trick when it comes to building customer loyalty.
In a competitive marketplace where customers find it easy to switch supplier, loyalty schemes are an
effective way to increase customer retention and improve profitability. To build a loyal clientele,
keeping the customer satisfied with one’s day-to-day operations is not always enough. The fact that
customers are satisfied does not stop them from taking their business to a competitor who offers them
something extra.
To increase loyalty, one needs to recognise and reward the best customers. A loyalty scheme can be
used to incentivise and delight the most valued customers. That in turn can increase profitability.
Loyalty initiatives allow one to focus on the best customers and improve customer satisfaction levels.
Loyal customers buy more and are often willing to pay more, which boosts cashflow. By increasing
loyalty, one can increase profitability and extend the time they place their business with the company.
Loyal customers are also good for business because the customer become the best advocates of the
company. They recommend the company to others, saving marketing costs. A loyal customer's
endorsement is more powerful to their friends and family than any advertising campaign.
Customers like loyalty schemes because they feel they are getting rewarded for giving the company
their business. Thus the scheme needs to offer customers something they will appreciate. However, it
should also be devised with profit in mind.
The company is trying to reward customers for behaving in the way that it wants.
The rewards offered to regular customers can vary from fixed discounts to extra goods or prizes.
Foremost, the scheme should be simple to use and the rewards should be attractive and attainable. If
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customers have to spend a lot to get a small gift, they will be insulted. At the same time, the company
must make sure it can recover the cost reasonably quickly.
The data generated by a loyalty scheme can also be used to improve business. Loyalty programmes
put the spotlight on customer behaviour. They can show the best clients - and highlight the worst.
It can be more profitable to lose bad customers than to gain new ones. While the best customers may
be bringing in the lion's share of profit, the worst customers, the bargain-hunters that spend little and
only buy discounted goods, can actually cost money. The loyalty scheme can significantly improve
this scenario by rewarding customers and actively dissuading the worst.
Loyalty schemes can also be used to win back lapsed customers. These customers are much easier
to win over than cold prospects. They know the company and the company knows them, their buying
history and where and how to reach them.
The data generated by a loyalty scheme can offer other valuable insights. It can highlight defection
patterns and can also help the company improve your product range and stock selection. Knowing
what the best customers frequently buy helps one choose which lines to stock - and which lines to
expand.

Social Media
Social media in a retail context is the action of Peer pressure to create sales.
As social media had evolved, so has how consumers make purchase decisions, particularly the
younger and more suggestible demographics.
The constant interconnectedness of social media sites, coupled on mobile devices have snowballed
the effects of peer opinion on purchases. “Crowd Sourcing”, meaning the tapping of the collective
awareness of one’s peer group, or a section of the audience, is a growing trend.
Over 50% of this younger demographic is likely to explore brands via a social network, versus less
that 27% of older demographics.
Over 50% of this younger demographic versus less that 20% of older demographics use mobile
devices to access user opinion before buying a product.
The growth of photo-sharing and similar websites that allows users to create and share products and
ideas go viral faster than before. Over 30% of online shoppers have made a purchase based on what
they saw on such sites. Retailers are increasingly using these sites for marketing promotions.

Caution should however be exercised before large marketing investments are made in this area. As
with all trendy and fashion driven activities, especially those concerning the younger demographics,
the shelf life of these market efforts are limited and unpredictable. There are already signs of user
fatigue with social media sites and user growth in these activities will become unsustainable in the
future. When that happens, the use of these promotional venues by retailers will become counterproductive.

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Part J : Pricing & Price Points
This data is available on a Corporate basis and on a Location/Site basis for 3 Suisses
International Group

Pricing Study
This survey is about the Company’s brand(s) / product(s) / service(s) as described to respondents
individually and as a basket of products.

The baseline for this survey is the 15 major Product Lines of the Company. A more comprehensive,
with individual products and more product groups is available on request.

Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_J

1. How would you best describe your familiarity with the Company’s brand(s) / product(s) /
service(s)?
a. I was not aware of the brand / product / service
b. Only generally aware
c. Have investigated or researched such products
d. Have demonstrated a product like this
e. Have purchased or regularly use a product like this

2. About how many units of these products would you buy over the next year at each price point
listed below (FMV Fair Market Value)?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. FMV = Estimated Fair Market Value = Recommended Retail Price
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
3. About what price would you expect to pay for these products / services?
4. At what price would these products begin to look inexpensive or cheap?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%

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5. At what price would these products begin to look Good Value?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
6. At what price would these products begin to look too expensive?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
7. At what price would these products begin to look so expensive that you would never consider
buying them?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
8. If you knew that the average price of similar brand / product / service was [Price], would you
expect to pay more or less to buy the described brand / product / service?
a. (20-30%) more
b. (5-10%) more
c. No more, no less
d. (5-10%) less
e. (20-30%) less
9. If you are a current user of a similar brand / product / service, how long have you used the
brand / product / service?
a. Under 1 month
b. 1-6 months
c. 6 months to 1 year
d. 1-2 years
e. 3 years or more
f. Do not currently use
10. How often could you find a use for the described brand / product / service?
a. Once a week or more often
b. 2-3 times a month
c. Once a month
d. Every 2-3 months
e. 2-3 times a year
f. Once a year
g. Would not use
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11. Based on the description, how interested would you be in buying the described brand /
product / service; if priced within your budget?
a. Not at all interested
b. Not very interested
c. Not sure
d. Somewhat interested
e. Very interested

12. What is it that you like most about the described brand / product / service?
13. What do you like least about the described brand / product / service?

14. Which of the following best describes your need for the described brand / product / service?
a. I really need this product because nothing else can solve this problem.
b. This is a minor improvement over what I currently use.
c. Looks okay but is about the same as what I'm using now.
d. My current product would serve me better.
e. I am not at all interested in this product.

Pricing Strategies
Price Discounting

Many retailers reacted very quickly to the financial crisis by discounting prices across the
board without fully understanding the impact on demand or profitability. This has had a
dramatic effect in many retail sectors where recession-driven discounting has fundamentally
eroded both the value of the market, and the value proposition of the product sold.
Consumers’ price expectations are lower and buying behaviour has changed.

Unsustainable Pricing

Whilst retailers know that current price levels are not sustainable, they also recognise that
downturn discounting has re-set the price baseline for consumers, who are now unwilling to
pay more. This problem is compounded by inflation and rising input costs, causing retailers to
be squeezed from both sides.

Customers Segments

Retailers cannot identify their most profitable customers segments, and do not have the
information available to understand the impact of price changes on demand patterns.
Recession-driven discounting has attracted and retained less profitable customers and this
has serious implications for the go-to-market strategy.

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Strategies
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_J

15. Pricing strategy as a Boardroom decision
16. Align pricing to the overall business strategy, and the new market dynamics
17. Obtain accurate customer, competitor and market information
18. Drive consistent execution
19. Prepare for future challenges

Price Discounting
When demand fell in the wake of the financial crisis, retailers were driven by the need to maintain
sales volumes and protect market share, therefore critical pricing decisions were taken in a hurry and
many retailers resorted to price reductions across their product and service portfolios.


55% of companies reduced prices across the board
65% of business leaders fear recession-driven discounting has hit profits
50% conducted price wars with competitors

Retailers were forced to make reactive pricing decisions without adequate information and many
companies felt compelled to competing on price.

50% of retailers entered into price wars with competitors.
55% of retailers reduced prices which resulted in reduced margins.

Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_J

20. When survival is the key driver, dropping price is an understandable response as volumes
fall.
21. Discounting products or services which are price elastic result in an increase in sales
volumes.
22. Clear understanding of the trade-off between volumes and margin.
23. Impact of price changes on demand, and the impact on profitability.
24. Understanding of the customer base and the price elasticity of various customer segments.
25. Discounts are often driven not by an informed understanding of market dynamics but by sales
personnel and their incentives.
26. Store success is frequently measured by sales volume, rather than the profitability of the
revenue.
27. Retailers needed to look at their pricing processes and controls to ensure their pricing
strategy was effectively implemented and monitored.
28. Performance metrics should be linked to profit as well as volumes; and appropriate controls,
such as target and limit prices, should be embedded into company policies.

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3 Suisses International Group - France

Impact of Unsustainable Pricing

72% of retailers state that their current pricing is not sustainable

66% of retailers state that increasing prices from recession discount levels presents a
significant challenge

55% of retailers state that they are unable to pass on cost inflation to customers

Stagnant Prices

65% of retailers state that recession-driven discounting will not be sustainable in the long
term.

52% of retailers state that their company’s overall pricing strategy is not sustainable.

Retailers fear that price increases will face stiff market resistance, because customers used to a
decade of low inflation, followed by heavy price-cutting, perceive discounts to be the norm. A majority
of retailers, 56%, state that customers who enjoyed discounts during recession will be unwilling to pay
higher prices in better times.
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_J

29. Reactive, recession-driven discounting cannot now be sustainable.
30. Retailers that think customers will pay higher prices in better times are being highly optimistic.
31. Once customers have been educated on a new price point, it is exceptionally difficult to bring
that point back up.
32. Unemployment, government cuts, public sector redundancies, increases in taxation, and the
economic climate will continue to have a bearing on changing buying habits.
33. Discounted prices are out of kilter with the fixed cost base of many retailers, and aligning the
business model and cost base with post-recessionary pricing will be formidable; thus retailers
have to re-visit their cost structures and potentially make some radical decisions to ensure
they are fit to compete and succeed in the future.
34. To achieve the necessary cost re-structuring, retailers might have to divest part of their
business, stop some unprofitable activities, or implement a different sourcing model.
35. What this requires is an in-depth review of markets, business models and pricing strategy.
36. Businesses need to decide exactly which market they are competing in. In retail the lower
cost ‘value’ traders which have thrived by attracting increasingly price-conscious consumers
are here to stay. Their business model is predicated on ensuring their costs are kept low, to
allowing them to make sustainable margins.
37. Alternatively the low volume / premium price market retailers need to understand exactly what
their customers value, build a strong brand, and have an exceptional store experience and
offering.
38. To exacerbate this price lag effect there is fear of first-mover disadvantage. Over 53% of firms
are delaying significant increases in the current climate, and 65% believe they risk losing
customers and damaging sales volumes if their organisation is first to remove discounts.
39. The basis of the pricing issue is that retailers are locked into their current prices.

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Inflation

With consumer product prices stagnant, rising commodity and price inflation compounds the
problems of retailers. 53% of retailers are experiencing cost inflation, and forecasting further
rising costs.
70% of retailers state that they will have problems in passing on rising input costs to their
customers; and 53% state categorically that they will be unable to do so.

Profit Margins

Price erosion coupled with cost inflation may be depressing retailer’s profits by 3-12%.

Profitability
40. Retailers are unlikely to recover their profit position in the next 12-36 months.
41. The restoration of pricing levels will take longer that the predictions generally make in the
retail trade.
42. Low customer purchasing power is likely to ensure that prices remain depressed for at least
24 months. After this time, retailers will not have the same price / customer / product mix
which they enjoyed before the recession.

Customers Base

Lacking critical business intelligence, companies have been pricing their way through
recession in the dark. 70% of retailers state that determining a coherent pricing strategy is
very difficult, and 60% state that it is extremely difficult to obtain accurate data on the impact
of pricing on profitability. 50% believe that recession discounting policies have attracted less
profitable customers

60% of retailers state that they do not have accurate data on the impact of pricing on sales
performance and profitability.

45% of retailers state that their company lacks the management tools and right information to
support informed and effective pricing decisions.

55% of retailers state that identifying the most profitable customers presents is difficult as
does identifying the most profitable products or services. Over half of retailers state that they
do not understand what customers require and what is the value proposition they seek.

Two thirds of retailers state that they do not have a consistent and coherent pricing strategy.

Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_J

43. Developing and agreeing a consistent and coherent pricing strategy
44. Identifying what customers value
45. Understanding customer requirements
46. Identifying the most profitable products/services
47. Identifying the most profitable customers
48. Obtaining accurate data to enable visibility of the impact of pricing on profitability
49. Obtaining accurate data to enable visibility of the impact of pricing on sales performance
50. Identifying the most profitable customers, products and services is clearly a more challenging
task than most retailers acknowledge.
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51. To understand profitability by customer, retailers need visibility of the true ‘cost to serve’, and
how that may change over time.
52. Few retailers have a strong, granular understanding of their costs to serve by customer,
product or channel. This limits their ability to accurately analyse the likely impact on
profitability of pricing and other changes.
53. Retailers have not come to terms with different sales volumes, changing customer behaviours
and the impact of falling prices. These factors do not affect the ‘cost-to-serve’ equation in a
linear fashion, and for this reason retailers are finding it difficult to understand which product
offerings and which market segments are actually generating a profit.

Differential Value
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_J

54. Retailers know that in striving to maintain sales volumes, they have been operating in markets
they might not have chosen to play in. 50% of retailers state that they believe that discounting
policies have attracted and retained less profitable customers during the recession.
55. Retailers will produce a tiered pricing structure for different customer segments in the future.
56. Retailers will not be able to focus discounts on their most profitable or highest-spending
customers segments in the future.
57. Retailers face risks in shifting customer demographic focus.
58. Business plans, growth projections and investments are all made on the basis of an accepted
customer demographic, and buying habits.
59. Known customers demographic have known spending patterns and spending power.
60. Retailers who offered discount promotions during the recession need to be careful of how this
may have affected the customer base as they have educated their customers to a price point
and a level of value that they might not be able to maintain.
61. Retailers may not have the ability to spot such a shift, as internal reporting systems are often
too slow to recognise this until it is too late.
62. Many retailers do not know which customers and product lines drive profit.
63. Underlying retailer transactional systems fail to provide the information to accurately calculate
costs to serve.
64. It is often impossible to determine profitability by customer, product or channel.
65. Business intelligence is critical to provide the insight to identify where value is really
generated in an organisation.
66. Retailers need to invest in information gathering; however there is often reluctance to
undertake this because heavy investment in ERP (Enterprising Planning) systems has often
failed to realise the anticipated benefits.
67. The omission of a business intelligence input has meant an inability to capitalise on the data
and business insight ERP can provide.
68. More efficient and accurate cost allocation provides an understanding of true profitability by
customer, product and channel. Retailers can then focus on retaining and growing the
accounts of their most profitable customers and shedding unprofitable product lines.

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Future Strategies
Retailers understand the need to re-align pricing and are keen to introduce premium priced products
or variable pricing, however there is not a great deal of confidence in being able to execute such
strategies.

Future Pricing Strategies



65% of retailers state that after a few years there will be a return to premium pricing.
60% of retailers state that discount price offerings will remain important.
70% of retailers state that variable pricing will also form a key part of the pricing mix.
55% of retailers state that they will introduce premium price products and services.

Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_J

69. Implementing new contracting arrangements
70. Increasing joint business planning with key customers
71. Introducing lower cost, lower price products and services
72. Introducing premium price products and services Introducing variable / pay-as-you-go pricing
73. Customer Surveys suggest that the plans of retailers to higher prices may not be successful.
74. Customer Surveys suggest that they are sceptical about premium priced products.
75. Supplier Surveys suggest that new ways of servicing retail customers, such as payment for
performance and on-demand delivery, may be difficult for retailers to deliver.
76. Senior Management time should be dedicated to setting the most profitable pricing strategy.
77. Pricing strategy should be a part of a full business strategy review.
78. Market dynamics and customer buying habits have changed and previously held assumptions
around market dynamics must be reviewed andthe business model re-evaluated.
79. Setting and executing pricing policy will be a critical element of this to drive profitable growth.
80. Access to the right information
81. Retailers should have access to robust, accurate and timely data to inform pricing decisions.
82. Data should include a granular, or item by item, level of understanding of the profitability of
products and customers.
83. Effective business intelligence does not just drive action, it drives decisions and strategy.
84. Drive consistent execution
85. Be prepared to take on the significant challenge of changing the behaviour of sales
personnel.
86. Embed the right selling incentives, processes and controls that are required to ensure pricing
strategy is executed consistently, and sales personnel are delivering profit, not just volumes.

Preparation for Future Price Changes
87. Invest in understanding how pricing models in market sectors are likely to change in the
future, and how to prepare to implement those changes successfully.

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Part K : Retailer Performance Analysis
This data is available on a Corporate basis and on a Location/Site basis for 3 Suisses
International Group

Store Managers Survey
Store Personnel Surveys of 3 Suisses International Group:

as an Excel file: Part_K

1. Confidence that the company will gain additional market share in the industry in the coming 2
years?
a. Very confident
b. Confident
c. Somewhat confident
d. Not sure
e. Somewhat doubtful
f. Doubtful
2. What is the range of your outlets sales volume of company products last year?
i. $250,000 - $499,000
ii. $500,000 - $999,000
iii. $1,000,000 - $2,999,000
iv. $3,000,000 - $4,999,000
v. $5,000,000 - $9,999,000
vi. $10,000,000 - $19,999,000
vii. $20,000,000 or more
3. How long has your outlet been established?
a. 1-5 years
b. 5+ years
4. How much of your business volume is accounted for by this company’s own products?
a. 24% or less
b. 25% - 49%
c. 50% - 74%
d. 75% or more
5. How much of your profit is derived from this company’s own products?
a. 24% or less
b. 25% - 49%
c. 50% - 74%
d. 75% or more
6. Which of the following company product lines do you fully support at this time?
7. Compared to the market leader, how do your products offer advantages in selling situations?
a. Strong advantage
b. Slight advantage
c. About the same
d. Slight disadvantage
e. Strong disadvantage

8. Compared to the market leader, how do your products offer advantages in profitability?
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3 Suisses International Group - France
a.
b.
c.
d.
e.

Strong advantage
Slight advantage
About the same
Slight disadvantage
Strong disadvantage

9. Compared to the market leader, how do your products offer advantages in service and
supplies business?
a. Strong advantage
b. Slight advantage
c. About the same
d. Slight disadvantage
e. Strong disadvantage
10. Which product line do you see as offering a stronger competitive position to your company?
11. Overall, have actions taken by company senior sales and marketing management over the
past year had an impact one way or another on your business?
a. Very positive impact
b. Positive impact
c. Somewhat positive impact
d. Not sure
e. Somewhat negative impact
f. Negative impact
g. Very negative impact
12. Describe which actions had the greatest impact on your business, and why:
13. Which of the following best describes the influence you feel you have with company senior
management?
a. A lot of influence
b. Some influence
c. Very little influence
d. No influence
14. On average, which of the following best describes company management's timeliness in
response to your requests and inquiries?
a. Very timely
b. Somewhat timely
c. Mixed
d. Somewhat slow
e. Very slow
15. How do you rate your company’s operational abilities?
16. Which of the following administrative areas would you say presents the greatest opportunity
for improvement?
a. Order processing
b. Shipping
c. Inventory tracking
d. Billing and credits
17. How do you rate your company’s marketing and sales programs?

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3 Suisses International Group - France

18. Compared with the investment support level in your company business this year, what are the
investment support plans for next year?
a. Greatly increase support
b. Increase support
c. Maintain same level of support
d. Decrease support
e. Greatly decrease support
19. Why did you answered the way you did about your investment support plans for your
company business for next year?
20. What suggestions do you have for company senior management which would help you
improve the success of your company business next year?

Customer Satisfaction Survey
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_K

21. Overall, I am very satisfied with the way the retailer performed (is performing):
a. Strongly Disagree
b. Somewhat Disagree
c. Neither Agree nor Disagree
d. Somewhat Agree
e. Strongly Agree
22. Sales Personnel are well trained.
23. Sales Personnel are well supervised.
24. Sales Personnel adhere to professional standards of conduct.
25. Sales Personnel act in my best interest.
26. Overall, I am satisfied with the Sales Personnel
a. Strongly Disagree
b. Somewhat
c. Disagree
d. Neither Agree nor Disagree
e. Somewhat Agree
f. Strongly Agree
27. The store senior staff are knowledgeable and professional.
28. The store senior staff are making a positive contribution to customer service.
29. The store senior staff responded to my inquiries in a timely manner.
30. Overall, I am very satisfied with the store senior staff.
31. Compared to how you felt about the retailer before this purchase, what is the likelihood of
completing another purchase with the retailer?
a. Better, based on performance
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3 Suisses International Group - France
b. About the same
c. Worse, based on performance
32. Considering the overall value, you paid for the product, was it…
a. An exceptional value, worth more than you paid for it
b. A good value, worth about what you paid for it
c. A poor value, worth less than you paid for it

Inventory Control
Product life cycles are shrinking, which adds pressure to get final products into consumers' hands
much faster than before.
With more aggressive competition, keeping inventory lean while still meeting fluctuating demand
patterns becomes critical, and underlines the need for technological solutions to manage inventory
and orders.

Inventory Balancing Act
Retailers must balance how much inventory to stock in-store versus distribution centres and
warehouses. This calculation bears consideration of the required coordination between all possible
channels such as:
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_K

33. Buy online, pick up in local store
34. Buy anywhere, ship from store to home
35. Buy online, transfer to store for pick-up
36. Research online, reserve in store
37. Buy online, return to store

Just-in-time inventory
Just-in-time inventory management allows for the reduction of stock and storage costs, but may
increase transportation costs and potentially delivery times. The Speed versus Cost equation is well
known to all retailers and these considerations will particularly impact retailers with seasonal, short
shelf life and trend based products.

Microwave merchandising
The fast-fashion global retailers from Sweden, Spain, the UK and other countries, have dominated the
clothing industry in recent years, by attracting considerable consumer bases, expanding revenues
and expanding aggressively in prime markets in both developed and developing countries. The
success of retailers like Zara, H&M, and others is the quick turnaround times for product ranges and
store displays. This stimulates interest and demand.
These retailers are changing and defining buyer expectations. Consumers are now seeking new
product ranges in 6 to 9 weeks as opposed to 6 to 9 months. Many of these retailers manage the
entire production and distribution process in-house; this reduces risk and ensures an efficient supply
chain.
Those retailers without upstream integration processes must respond with a strategy of smaller orders
distributed amongst a greater pool of suppliers. This however tend to lead to increased unit costs and
therefore the long-term competitiveness of such a strategy is uncertain.
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3 Suisses International Group - France

Speed and Cost
Clearly the cost of sea transport is substantially less than air freight. In general Sea transportation is
used by over 60% of long-distance shippers whilst Air is user by 30% of long-distance shippers.
Retailers are having to evaluate the trade-off between increased velocity and flexibility, and
transportation costs, in the light of both inventory requirements and product-to-market times.

Expert and Industry Appraisal of 3 Suisses International Group:
38.
39.
40.
41.
42.
43.
44.
45.

Factors for Just-in-time management
Supply chain agility
Supply chains visibility and flexibility
Inventory certainty
Transit visibility and flexibility
Distribution centre management
Store stock holdings
Back order management

46.
47.
48.
49.
50.

Inventory optimisation
Supply chain optimisation
Customer service optimisation
Speed to market
Integration of orders into the stock processing schedule

51.
52.
53.
54.

In-house manufacturing
Own private label products
Product availability
Supplier mark-ups

as an Excel file: Part_K

Operational Performance Analysis
A survey of Consumers and Retail Customers to analyze overall Retailer Performance Issues:
Customer Surveys of 3 Suisses International Group:
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.

as an Excel file: Part_K

Attitudes Towards Discount / Store Own-Brand Products
Availability -v- Price Question
Perceptions of Currently Global Brands
Perceptions of Currently Store Brands
Price Sensitivity
Product Awareness
Product Awareness of Store Brands
Purchasing Criteria: Current
Purchasing Criteria: Current of Store Brands
Purchasing Criteria: Future Trends
Purchasing Criteria: Future Trends of Store Brands
Quality -v- Price Question
Reaction to Advertising & Sales Promotion
Reaction to Advertising & Sales Promotion of Store Brands
Reaction to P.O.S. & Merchandising
Satisfaction with Existing Branded Outlets
Satisfaction with Existing Store Brand Products
Satisfaction with Existing Products
Satisfaction with Existing Retailers
Satisfaction with Store Brand Product Design
Satisfaction with Store Brand Product Packaging
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3 Suisses International Group - France
76. Satisfaction with Store Brand Product Packaging Design
77. Satisfaction with Store Brand Product Quality
78. Satisfaction with Product Availability
79. Satisfaction with Product Design
80. Satisfaction with Product Packaging
81. Satisfaction with Product Packaging Design
82. Satisfaction with Product Quality
83. Satisfaction with Retailers Stock Levels
84. Willingness to Purchase Foreign Brands
85. Willingness to Purchase Store Brands
86. Advertising Posture: Store/Outlet Level
87. Advertising Posture: Company Level
88. Branded Product Information: Store/Outlet Level
89. Branded Product Information: Branded Products
90. Branded Product Information: Company Level
91. Branded Product Information: Counter Staff
92. Branded Product Information: Dedicated Products Staff
93. Contract Documentation: Store/Outlet Level
94. Contract Documentation: Company Level
95. Counter Staff Customer Handling: Store/Outlet Level
96. Counter Staff Customer Handling: Branded Products
97. Counter Staff Customer Handling: Company Level
98. Counter Staff Customer Handling: Counter Staff
99. Counter Staff Customer Handling: Dedicated Products Staff
100.
Credibility: Store/Outlet Level
101.
Credibility: Branded Products
102.
Credibility: Company Advertising
103.
Credibility: Company Level
104.
Credibility: Company Offers & Promotions
105.
Credibility: Counter Staff
106.
Credibility: Dedicated Products Staff
107.
Customer Awareness of Product: Store/Outlet Level
108.
Customer Awareness of Product: Company Level
109.
Customer Complaint Handling: Store/Outlet Level
110.
Customer Complaint Handling: Branded Products
111.
Customer Complaint Handling: Company Level
112.
Customer Complaint Handling: Counter Staff
113.
Customer Complaint Handling: Dedicated Products Staff
114.
Customer Comprehension of Product: Store/Outlet Level
115.
Customer Comprehension of Product: Company Level
116.
Customer Confidence at Store/Outlet Level
117.
Customer Confidence at Company Level
118.
Customer Confidence in Branded Products
119.
Customer Confidence in Company Advertising
120.
Customer Confidence in Company Offers & Promotions
121.
Customer Confidence in Counter Staff
122.
Customer Confidence in Dedicated Products Staff
123.
Customer Confidence in Product: Store/Outlet Level
124.
Customer Confidence in Product: Company Level
125.
Customer Handling: Store/Outlet Level
126.
Customer Handling: Branded Products
127.
Customer Handling: Company Level
128.
Customer Handling: Counter Staff
129.
Customer Handling: Dedicated Products Staff
130.
Customer Problem Solving: Store/Outlet Level
131.
Customer Problem Solving: Branded Products
132.
Customer Problem Solving: Company Level
133.
Customer Problem Solving: Counter Staff
134.
Customer Problem Solving: Dedicated Products Staff
135.
Customer Service: Store/Outlet Level
134

3 Suisses International Group - France
136.
137.
138.
139.
140.
141.
142.
143.
144.
145.
146.
147.
148.
149.
150.
151.
152.
153.
154.
155.
156.
157.
158.
159.
160.
161.
162.
163.
164.
165.
166.
167.
168.
169.
170.
171.
172.
173.
174.
175.
176.
177.
178.
179.
180.
181.
182.
183.
184.
185.
186.
187.
188.
189.
190.
191.
192.
193.
194.
195.

Customer Service: Branded Products
Customer Service: Company Level
Customer Service: Counter Staff
Customer Service: Dedicated Products Staff
Customer Service: Offers & Promotions
Promotional Activity: Store/Outlet Level
Promotional Activity: Company Level
Reputation at Store/Outlet Level
Reputation at Company Level
Reputation of Branded Products
Reputation of Counter Staff
Reputation of Dedicated Products Staff
Staff Awareness of Product: Branded Products
Staff Awareness of Product: Counter Staff
Staff Awareness of Product: Dedicated Products Staff
Staff Comprehension of Product: Branded Products
Staff Comprehension of Product: Counter Staff
Staff Comprehension of Product: Dedicated Products Staff
Staff Confidence in Product: Branded Products
Staff Confidence in Product: Counter Staff
Staff Confidence in Product: Dedicated Products Staff
Staff Efficiency: Store/Outlet Level
Staff Efficiency: Branded Products
Staff Efficiency: Company Level
Staff Efficiency: Counter Staff
Staff Efficiency: Dedicated Products Staff
Staff Efficiency: Offers & Promotions
Staff Efficiency: Problem Solving
Staff Integrity: Advertising & Promotions
Staff Integrity: Store/Outlet Level
Staff Integrity: Branded Products
Staff Integrity: Company Level
Staff Integrity: Counter Staff
Staff Integrity: Dedicated Products Staff
Staff Integrity: Offers & Promotions
Staff Performance: Store/Outlet Level
Staff Performance: Branded Products
Staff Performance: Company Level
Staff Performance: Counter Staff
Staff Performance: Dedicated Products Staff
Staff Performance: Offers & Promotions
Staff Performance: Overall Customer Handling
Truth & Honesty: Advertising & Promotions
Truth & Honesty: Store/Outlet Level
Truth & Honesty: Branded Products
Truth & Honesty: Company Level
Truth & Honesty: Counter Staff
Truth & Honesty: Dedicated Products Staff
Truth & Honesty: Offers & Promotions
Verbal Contact: Store/Outlet Level
Verbal Contact: Branded Products
Verbal Contact: Company Level
Verbal Contact: Counter Staff
Verbal Contact: Dedicated Products Staff
Written / Internet / Telephone Communications: Store/Outlet Level
Written / Internet / Telephone Communications: Branded Products
Written / Internet / Telephone Communications: Company Level
Written / Internet / Telephone Communications: Counter Staff
Written / Internet / Telephone Communications: Dedicated Products Staff
Written / Internet / Telephone Communications: Promotions & Offers
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3 Suisses International Group - France

Issues covered with Trade Wholesalers, Brand Managers, Trade Buyers, Retailers, In-store Retail
Negotiators include:
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_K

196.
Retail Management Performance: Person/s Approving / Authorising Order/s
197.
Retail Management: Person/s Deciding What Products / Brands are to be Stocked
198.
Retail Management Performance: Person/s Evaluating Products & Brands Available
199.
Retail Management Performance: Person/s Initiating Decision to Increase Amounts
Purchased / Total Inventory
200.
Retail Management Performance: Person/s Initiating Decision to Introduce New
Products or Brands
201.
Retail Management Performance: Person/s Initiating Decision to Re-Order
202.
Retail Management Performance: Person/s Monitoring Results of Purchases & Sales
203.
Retail Management Performance: Person/s Negotiating Terms with Suppliers
204.
Retail Management: Person/s Preparing Orders / Specifications for Purchases
205.
Retail Management: Person/s Surveying Suppliers & Seeking Quotations
206.
Wholesaler Management Performance: Person/s Approving / Authorising Order/s
207.
Wholesaler Management Performance: Person/s Deciding What Products / Brands
are to be Stocked
208.
Wholesaler Management: Person/s Evaluating Products & Brands Available
209.
Wholesaler Management Performance: Person/s Initiating Decision to Increase
Amounts Purchased / Total Inventory
210.
Wholesaler Management Performance: Person/s Initiating Decision to Introduce New
Products Or Brands
211.
Wholesaler Management Performance: Person/s Initiating Decision to Re-Order
212.
Wholesaler Management: Person/s Monitoring Results of Purchases & Sales
213.
Wholesaler Management Performance: Person/s Negotiating Terms with Suppliers
214.
Wholesaler Management Performance: Person/s Preparing Orders / Specifications
for Purchases
215.
Wholesaler Management: Person/s Surveying Suppliers & Seeking Quotations
216.
Retail Buyers: Attitudes Towards Discount / Own-Brand Products
217.
Retail Buyers: Availability -v- Price Question
218.
Retail Buyers: Buying Patterns
219.
Retail Buyers: Current Purchasing Criteria
220.
Retail Buyers: Frequency of Deliveries
221.
Retail Buyers: Frequency of Purchase/s
222.
Retail Buyers: Method of Payment for Supplies
223.
Retail Buyers: Ordering Procedures
224.
Retail Buyers: Product Reject/Return Rate by Customers
225.
Retail Buyers: Product Reject/Returns Rate at Goods Inwards
226.
Retail Buyers: Product Reject/spoilage Rate Whilst Held in Stock
227.
Retail Buyers: Purchasing Criteria - Future Trends
228.
Retail Buyers: Quality -v- Price Question
229.
Retail Buyers: Reactions to Advertising & Sales Promotion
230.
Retail Buyers: Satisfaction with After-Sales Services Received From Suppliers
231.
Retail Buyers: Satisfaction with Availability of Advertising Support & POS /
Promotional Materials
232.
Retail Buyers: Satisfaction with Availability of Supplies
233.
Retail Buyers: Satisfaction with Deliveries / Frequency & Up-Take
234.
Retail Buyers: Satisfaction with Existing Methods of Supply & Distribution
235.
Retail Buyers: Satisfaction with Existing Products
236.
Retail Buyers: Satisfaction with Existing Suppliers & Sources
237.
Retail Buyers: Satisfaction with Ordering Procedures
238.
Retail Buyers: Satisfaction with Quality & Specifications of Supplies
239.
Retail Buyers: Satisfaction with Suppliers' Stock Levels
240.
Retail Buyers: Satisfaction with Promotional & Advertising Assistance Received
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3 Suisses International Group - France
241.
242.
243.
244.

Retail Buyers: Satisfaction with P.O.S. & Marketing Materials
Retail Buyers: Satisfaction with Terms of Trading
Retail Buyers: Source of Supply
Retail Buyers: Supplier Loyalty

245.
Wholesale Buyers: Attitudes Towards Discount / Unbranded / Own-Brand Products
246.
Wholesale Buyers: Availability -v- Price Question
247.
Wholesale Buyers: Buying Patterns
248.
Wholesale Buyers: Current Purchasing Criteria
249.
Wholesale Buyers: Problems with Products
250.
Wholesale Buyers: Sales Promotional Activities Mix
251.
Wholesale Buyers: Sales Promotional Activities to their Retailers
252.
Wholesale Buyers: Delivery / Service Area
253.
Wholesale Buyers: Discounts Offered to Retailers
254.
Wholesale Buyers: Experiences of Product Reject Claims
255.
Wholesale Buyers: Frequency of Deliveries to Retailers
256.
Wholesale Buyers: Frequency of Purchase/s
257.
Wholesale Buyers: Inventory Financing
258.
Wholesale Buyers: Mode of Ordering by Retailers
259.
Wholesale Buyers: Mode of Payment by Retailers
260.
Wholesale Buyers: Number of Competitive Producers Represented
261.
Wholesale Buyers: Producers Sales Promotion Most Influencing Dealers
262.
Wholesale Buyers: Purchasing Criteria - Future Trends
263.
Wholesale Buyers: Quality -v- Price Question
264.
Wholesale Buyers: Retailers Attitude Towards Price -v- Availability
265.
Wholesale Buyers: Sales Call Frequency Per Regular Customer ( Average - Delivery
& Servicing )
266.
Wholesale Buyers: Satisfaction with After-Sales Services Received From Suppliers
267.
Wholesale Buyers: Satisfaction with Availability of Advertising Support & POS /
Promotional Materials
268.
Wholesale Buyers: Satisfaction with Availability of Supplies
269.
Wholesale Buyers: Satisfaction with Documentation / Instructions
270.
Wholesale Buyers: Satisfaction with Existing Methods of Supply & Distribution
271.
Wholesale Buyers: Satisfaction with Existing Products & Product Ranges
272.
Wholesale Buyers: Satisfaction with Existing Suppliers & Sources
273.
Wholesale Buyers: Satisfaction with Own Stock Levels
274.
Wholesale Buyers: Satisfaction with Producers Ability to Fulfil Orders On Time
275.
Wholesale Buyers: Satisfaction with Producers Credit & Other Financial Details
276.
Wholesale Buyers: Satisfaction with Producers Delivery Frequency & Up-Take
277.
Wholesale Buyers: Satisfaction with Producers Ordering Procedures & Formalities
278.
Wholesale Buyers: Satisfaction with Producers Stock Levels
279.
Wholesale Buyers: Satisfaction with Producers Terms of Trading
280.
Wholesale Buyers: Satisfaction with Quality & Specifications of Supplies
281.
Wholesale Buyers: Satisfaction with Quality of Supplies Received
282.
Wholesale Buyers: Satisfaction with Promotional & Advertising Assistance Received
283.
Wholesale Buyers: Supplier Loyalty

137

3 Suisses International Group - France

Retail Performance Intelligence
Retail performance intelligence is vital to key business decision making, whether in one’s own
company or in order to effectively compete with other companies.
Retailers need to monitor their performance in real terms, and thereby have immediate control of their
decision making. The ability to interrogate business data and site performance in real time allows
managers to make timely decisions.
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_K

284.

Site performance comparisons and ranking

285.

Performance comparisons according to date /week / hour / day of the week / period

286.

Site or data comparisons for key performance indicators e.g. sales conversion

287.

Contextual information relevant for evaluating performance e.g. weather and events

288.
Data should be predefined, scheduled and distributed according to the requirements
of the managers concerned.

Business Performance Comparisons
Managers can only analyse the situation through accurate data on what is going on not only in one’s
own stores, and shopping areas, but also compare it with one’s competitors by size, type and
location. Correlations and hidden patterns over time help one identify the problems and opportunities.
Expert and Industry Appraisal of 3 Suisses International Group:
289.
290.
291.
292.
293.
294.
295.

as an Excel file: Part_K

Retail space performance
Optimum shopper to staff ratio
Customer service
Cost controls
Conversion rates
Competitive analyses
Historic and forecast performance data

Shopper Numbers and Quality
Retailers are aware that attracting the right demographic will lead to the higher conversion rates and
average transaction values. The use of live data around consumers’ behaviour and preferences,
coupled with synchronised advertising and marketing activity will draw quality traffic. Where and how
shoppers buy reveal the effectiveness of promotions in increasing traffic and sales.
Customer Surveys of 3 Suisses International Group:
296.
297.
298.
299.

as an Excel file: Part_K

Demographic targeting by location
Consumer Drivers and Purchasing Behaviours by location
Promotional targeting by demographic and location
Monitoring traffic, conversion rates and sales results

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3 Suisses International Group - France

Optimised Store Performance
Retailers look for empirical evidence which demonstrates which products and promotional activities
will generate healthy traffic at each retail site; and that this will translate into profitable sales. Essential
metrics include:
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_K

300.

Average spend per visitor

301.

Breakdown of sales across different retail product groups

302.

Sales performance of adjacent (owned and competitive) retail units

303.

Performance evaluations of each site

304.

Sales density across sites in the portfolio

305.
Stores that are over-trading and can be moved to larger units with lower costs due to
economies of scale
306.
Stores which are under-trading and require action can be taken to mitigate the
situation

Site Potential & Floor Mapping
Retailers have to ensure every part of their retail space generates the maximum return on investment.
Footfall numbers are simply not enough and one needs to encourage a steady flow of traffic around
every area of the store. Floor space mapping analyses the site by discrete areas enabling one to
identify hot and cold spots; and thereby understanding those areas that are under and overperforming. This allows the retailer to take appropriate action to optimise the situation.

Comparative Site Performances
Retailers have to compare individual site performance across their entire store portfolio by a range of
criteria including geographic region, size, type and store age to identify under and over-performing
stores. As one of the key factors informing the portfolio decision is whether to buy, sell or refurbish
particular stores, this objective data will prove useful to managers working to increase the value of the
whole portfolio.

Physical Operations at individual sites
Armed with detailed information on footfall traffic volumes, day by day, and hour by hour, the
individual store’s HVAC and lighting systems can be programmed to more closely mirror store use,
cutting energy costs considerably. Store usage patterns can also be factored in when drawing up
rosters for cleaning and security staff, thereby creating additional savings in personnel costs.

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Technology Usage
The use of communications technology by consumers, and the evolution of diverse retail channels
require that retailers be able to sell and deliver wherever the customer is located. Consumers expect
a wider variety of products from a single source and better product value without any loss in product
or service quality. To enable retailers to adequately compete they need to capture and utilise the
necessary business data:
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel Part_K

307.
308.
309.
310.
311.
312.
313.
314.
315.
316.
317.
318.
319.

Technological investment
Point of sale terminal data gathering
Online sales data gathering
Supply chain data
Site level of inventory
Distribution centre inventory
Social media integration
Search engine integration
Targeted web page advertising
Web identification and activity tracking
Consumer targeting
Target demographic surveillance
Online advertising calibration

320.
321.
322.
323.
324.

Sales personnel support systems
Supply chain visibility
Goods-in-transit
Delivery windows
Stock requirement predictions

325.
326.
327.

Real time availability of stock information to sales personnel
Kiosks where customers can check inventory
Kiosks where customers can purchase and have them directly shipped to their home

328.
a.
b.
c.
d.
e.
f.
g.

Retail channels:
in store
catalogue/call centre
traditional web
mobile web
social media
digital signage
kiosks

a.
b.
c.
d.
e.
f.
g.

Retail supply chain resources:
WMS (Warehouse management software)
OMS (Order management software)
DOM (Distributed order management)
POS (Point of sale)
ERP-CRM (Enterprise resource planning, client relationship management)
RFID (radio frequency ID)
Social media data

a.
b.
c.
d.

Retailer systems:
Retailers POS and e-commerce data management
Social and mobile initiatives
Real-time visibility across the entire supply chain
Retail site technology, handheld tablets and kiosks

329.

330.

140

3 Suisses International Group - France

Technology Spending & Customer Service
The retail scene is constantly changing due to continual mergers, new store entry, foreign brands,
multi-channel selling, e-commerce, and so forth. Intense competition among retailers has increased
the awareness of the new and emerging retail technologies.
Technology budgets have grown year-on-year for over two decades and these investments have not
only reduced a great deal of human interaction, but has helped to create positive customer service
experiences.
By using efficient and original technologies retailers have more dependable in-store customer data to
create better- designed performance measures, customer research, and analytics. These technology
solutions help the retailer focus completely on their customers.

e-Commerce and Cross-channel Sales
The percentage of sales made at traditional retail sites will fall form 93% in 2012 to less that 65% in
2019; however retailers are forecasting an increase in store portfolios and the maintenance of present
store sizes.
Of course retailers have often miscalculated the future and history is littered with failed retail brands.
Thus either some retailers are unrealistic about the impact of e-commerce on their business and the
need to decrease their store numbers and space in the future; or the function of these stores will
change from simply a point-in-sale to something more complex and integrated into the multi-channel
supply chain.

Development of Cross-channel Sales
The growth in cross-channel sales will average 12-15% per year over the next few years,
outperforming both e-commerce growth and retail sales growth. This means that multi-channel
coordination is becoming more critical as part of retailers’ operational strategy.

Audit of Retail Operation by Expert Appraisal:
Expert and Industry Appraisal of 3 Suisses International Group:
331.
332.
333.
334.
335.

Omni-channel selling plans
Merging with new shopping channels
Online competition strategy
Store footprint strategy
Total inventory levels

336.
337.

Dedicated pick-up space in-store
Front, back, or curb-side collection

338.
339.
340.

Staffing capacity
Store layout
Orders processing and fulfilment

341.
342.
343.
344.

Retailer on-shelf stocks
Short turnaround re-stocking
Cost-effective order fulfilment
Store footprint and space efficiency

345.
346.
347.
348.
349.

Order management system
Positioning of source inventory
Warehouse picking
Pack and ship tactics
Supplier shipping directly to store
141

as an Excel File: Part_K

3 Suisses International Group - France
350.
351.
352.

Inventory pooling
Safety stock levels
Stock space

353.
354.
355.
356.
357.
358.

Picking tactics
Labour intensity & costs
Order fulfilment strategies
Order fulfilment technologies
Optimisation of space
Handling Equipment Capital Costs

359.
360.
361.
362.

Picking carts systems
Batch picking
Picking technologies
Picking accuracy

363.
364.
365.
366.
367.

“Put” systems
Cart batching
Racking, shelving & carousels
Automated storage and retrieval systems (AS/RS or sorters)
Sorter units

368.
369.
370.
371.
372.

“Goods to operator” technologies
Operator work station
Horizontal or vertical carousels
Automated storage and retrieval machines (mini-load AS/RS)
Automated guided vehicles

Showrooming
Future retail strategies include the use of retail stores more as showrooms or giant catalogues for
consumers to feel and touch the product.
Traditional retailers were compromised when Amazon released a price-checking app that allowed
users to scan barcodes in rival stores and check for cheaper prices online. What this means is that
any retailer providing a ‘showroom’ may be doing so for the benefit of a third party online merchant.
Retailers have made enormous long-term capital investments creating distribution centres which
move crates and pallets to stores. Now however they must develop distribution networks capable of
getting single items to the customer’s door. Amazon is the leader in this field, using site selection,
automation and tax strategy to deliver pricing and delivery service that is challenging the traditional
retail traders. In the futuristic distribution centres of its subsidiary, Zappos, order picking is handled by
robots. The robots enable Amazon to turn off the lights and forget about air conditioning in a large
portion of its enabled distribution centres. It allows them to employ a fraction of workers in what was a
traditionally labour-intensive operation.
Amazon acquired the maker of these robots, Kiva Systems, and will likely automate a great deal more
of its operations in the future. In the meantime, Amazon continues to build distribution centres faster
than anyone else.
While most distribution centres do not have the robotic labour, they are still a blend of high technology
and a lot of manual labour. The 2,000 workers in Amazon’s 1-million-square-foot Chattanooga,
Tennessee facility are connected by about seven miles of fibre and 700 internet access points.
Amazon invested in a mezzanine level for this facility; and that will nearly double the floor space. With
so much investment and such specific facility requirements it is clear why Amazon has gone the buildto-suit route. Between its two existing facilities in Tennessee, Amazon has spent over $140 million.
Due to the material handling needs, each centre processes a different type of goods. The
Chattanooga centre is set up to handle mostly smaller items, while the Cleveland, Tennessee site
handles large items like televisions. Amazon is adding two more sites in Tennessee for an additional
investment of $150 million.
142

3 Suisses International Group - France

Audit of Retail Operation by Expert Appraisal:
Expert and Industry Appraisal of 3 Suisses International Group:
373.
374.
375.
376.
377.
378.
379.
380.
381.
382.
383.

as an Excel File: Part_K

‘Showrooming’ strategies
Unique products or “bundles” that are not for sale elsewhere
Co-operation with manufacturers to release products earlier than competitors
Price matching with online offerings
Build relationships with consumers
Boosting consumer loyalty
Encouraging product recommendations
Special deals for loyal consumers
Providing information
Providing exceptional service
Creating interactive environments for consumers

Of course it is not only Amazon investing in advanced automated materials handling and distribution
centres, retailers from all sectors have little alternative but to invest in such facilities in order to
compete in terms of both operating margins and customer service. These distribution centres also
demonstrate the trend towards larger facilities which allow economies of scale and operational time
efficiencies.

Audit of Retailer Factors by Expert Appraisal:
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel File: Part_K

384.
385.

Awareness in trends in technology
Awareness of consumer behaviour patterns

386.
387.
388.

Operational speed improvements
Faster trends cycles
Faster merchandise transits

389.
390.
391.
392.

Handling volatility in commodity prices
Handling volatility in transportation costs
Handling volatility in input pricing
Handling volatility in swings in consumer behaviours

393.
394.
395.

Handling current inventory levels
Handling upstream operations
Handling downstream operations

396.
397.
398.

Handling consumer price sensitivity
Handling consumer demand and trend cycles
Handling consumer buying patterns

399.
400.
401.

Expanding product offerings
Expanding social media initiatives
Expanding delivery flexibility

402.
403.
404.
405.
406.

Management of logistics & movement of goods
Management of suppliers and producers
Management of wholesalers
Management of own distribution centres
Management of store stocks

407.
408.

Strategy for changing labour requirements
Strategy for changing raw material usage
143

3 Suisses International Group - France
409.
410.
411.
412.
413.
414.

Strategy for changing transportation costs
Strategy for changing financial costs
Strategy for changing inventories levels
Strategy for changing merchandising systems
Strategy for changing information systems
Strategy for changing distribution systems

144

3 Suisses International Group - France

Part L : Strategies
This data is available on a Corporate basis for 3 Suisses International Group

Retailers must fully analyse the strategy of retailing from each perspective of a strategic methodology
which has to plan for and adapt to a complex, changing environment. Both opportunities and threats
must be considered. By engaging in strategic retail management, the retailer is encouraged to study
competitors, suppliers, economic factors, consumer changes, marketplace trends, legal restrictions,
and other elements. A retailer prospers if its competitive strengths match the opportunities in the
environment, weaknesses are eliminated or minimised, and plans look to the future (as well as the
past).

Retailer strategy consists of many factors, including:
Expert and Industry Appraisal of 3 Suisses International Group:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

as an Excel file: Part_L

Building relationships
Ownership and store mix
E-commerce, non-store and non-traditional retailing formats
Consumer behaviour and information gathering
Store locations
Managing the business
Planning, handling, and pricing merchandise
Communicating with the customer
Integrating, analysing, and improving strategic planning
Trans-international retailing
Franchising

The point of sale is becoming increasingly important for two reasons. Firstly because the consumer
media environment is becoming more fragmented making it more difficult to reach shoppers with
traditional tactics; and secondly, because retailers are getting stronger, smarter and better at
marketing.
The power that used to rest almost entirely with the national brand marketers who used advertising to
direct people to the stores to demand their products is shifting to the retailer. The advertising industry
has taken its eye off the ball by not understanding the importance of distribution-channel management
and thereby the brand owners have suffered.
In turn, there is no doubt that the adage ‘change or die’ will define the retailing sectors in the
immediate future. Whether individual retailer die will depend on if they change.
The change is often simply the ability to provide a multichannel sales environment to one’s
customers.
It is not that physical retail sites are dead, physical locations allow shoppers to touch and feel
products. In certain retail sectors this is essential. Retail outlets have real people who can provide the
kind of personal advice and service that’s essential to certain product sales. These attributes can be
harnessed and used to provide consumers with a real shopping experience.
For retailers to address the challenges of the future they need to embrace their customers’
preferences and expectations.

145

3 Suisses International Group - France

Expertise and Specialisation
Online retailers like Amazon have the consumer image of offering all things to all people, thereby
being a jack of all trades and master of none. This is especially true where advice and presentation
are a big part of the purchase experience.
Multichannel retailers can exploit this weakness on the part of pure online traders by making
themselves category experts offering service and advice, and positioning themselves as specialists.
By offering the best of their product sector, retailers can appear to be on the side of the customer by
giving sage advice and help. Retailers should be on the side of the customer and become their
advisors.
By providing expert publications, reviews and recommendations, being associated with trade experts
who can help customers, developing specialised supply of products, generating an environment which
engages customers and supplies expertise to help customers make informed choices, a retailer can
become differentiated. Stores can offer trained sales staff with expertise in their category. Retailers
can use video chat lines to provide customers with remote experts to answer questions on the spot.

Data Mining
The enormous availability of data allows retailers not only to identifying segments, but also to target
micro-segments based on patterns in individual consumers’ research and purchase behaviour. This
kind of analysis enables a stronger relationship with customers as the data specificity allows retailers
to cater to specific needs and wants.
This approach can help develop offers tailored to the individual and target underserved consumer
segments, with distinct marketing and product offerings. Some retailers have developed micro-sites
targeted at specific consumer segments.

Retail Store Evolution
As consumers use greater digital technology this should be used by retailers and become more
integrated with the shopping experience. Store retailers should re-invent the role played by their
stores by embracing the emerging innovations which are redefining what product knowledge and
convenience means to customers. This is more than just allowing customers to use physical stores to
pick up or return goods bought online; it is more about using the store as a service hub. By
developing the store facilities and space allocation across channels, and by altering the character and
atmosphere of a store, retailers could lead customers attitudes and behaviour patterns; and not just
struggle to react to and keep up with the customer.

Bespoke Service
While technology has allowed for more sophisticated targeting, it is important to remember that
consumers shop at stores for the Store Experience and contact with a real person.
Retailers offering personal shoppers across multiple channels can bring a valuable store experience
that is supported by just-in-time data. Some retailers enhance the bespoke service with a phone app
that identifies when customers enter the store and prompts staff to engage with the customer armed
with that customer’s purchase history and preferences.
An important part of making personal contact with customers is by creating familiar neighbourhood
connections. Various mobile apps offer local businesses innovative ways to use product offers that
encourage shoppers into their stores, and then keep them coming back with further offers, events and
promotions.

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3 Suisses International Group - France

Collaboration
Retailers need to find new partners and collaborators to get the capabilities, expertise, and access to
customer bases that they cannot easily develop on their own. Cross-retailer loyalty schemes help
create the same multi-category loyalty experience that Amazon has created through their Prime
offer. Retailers can look to promote products and services across the on- and offline worlds through
personal one-to-one marketing delivering email and text offers to mobile phones. This can be
triggered when the consumer is in the neighbourhood of one of the retailer’s stores.

Uniqueness
Brand images are becoming depreciated and consumers perceive even the prime brands as being
commonplace. This has led to a reduction in the price premiums previous expected by brand retailers.
Retailers need to develop unique products, with fresh brands and innovative presentation and
promotion. Exclusive lines of merchandise, private label offerings, and ‘celebrity endorsed collections’
help to differentiate one retailer from another.

Market Leadership
Store retailers can move into new, untapped markets where competitors do not have a foothold or do
not have an adequate product offering. Highly fragmented markets attract online suppliers, and here
there are opportunities to bring a lot of buyers and sellers together. The developing Asian and other
markets are extremely attractive in this respect.
Multichannel retailers need to perfect the digital shopping experience; customers increasingly demand
a trouble-free and effortless interaction with retailers. The ability of retailers to turn physical stores into
profit centres will determine if they are able to prosper or become another victim of the irresistible
digital revolution.

Audit of Retailer Strategy by Expert Appraisal:
Expert and Industry Appraisal of 3 Suisses International Group:
12.
13.
14.
15.
16.
17.
18.

Expertise and Specialisation
Data Mining
Retail store evolution
Bespoke service
Collaboration
Uniqueness
Market leadership

147

as an Excel file: Part_L

3 Suisses International Group - France

Part L.1 : Corporate Retail Strategies
Many retailers that expanded rapidly before the downturn did not have a worst case scenario market
strategy; and they are now suffering in the absence of a cogent business plan to carry them through
the bad times. Difficult trading conditions mean that it is a challenge to make any headway in an
aggressive and uncertain market place.
The challenge is to develop a strategy to fit the changing demands of the market.
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.1

Key target demographics
1.
2.
3.
4.
5.
6.
7.
8.
9.

Key customers bases served
Key competitors
Drivers of sales and margins
Retail offering
Multi-channel offerings
Cost base
Business plan effectiveness
Pricing strategy
Product buying channels

Challenging economic conditions are impacting on the retail sector across the world and underlying
problems need to be addressed.
Not only does rising inflation diminish discretionary spend, but spending patterns and product demand
is also evolving and retailers may not have the necessary resources to survive these changing
circumstances.
Retailers need to critically analyse their internal organisation to confirm that they have the basics:
Expert and Industry Appraisal of 3 Suisses International Group:
10.
11.
12.
13.
14.
15.

as an Excel file: Part_L.1

a clear strategy;
experienced retail business specialists in charge;
understand the key drivers for the business;
the right retail offering;
tested business model;
plans for future development.

Operating Strategies
Retailers that expanded when easy capital was available and the economy was growing are now
struggling because they neglected to develop a strategic business plan incorporating different
economic scenarios. Even those business managers who did plan for uncertainty may not have
incorporated all the variables and scenarios which have been experienced recently. Few managers
could have foreseen such a dramatic change in consumer purchasing behaviour, economic instability
and challenging market conditions.
Whilst there exists economic uncertain in many markets, and despite the fact that many businesses
have taken steps to ensure their survival, there is still ambiguity in profitability forecasts.
Understanding the underlying operational and market factors allow the development of a competitive
and sustainable strategy. Business plans and projections, investments decisions, and future
strategies are all made on the basis of a known customer demographic and fully understood
customers purchasing behaviours. When customer demographic, spending patterns, spending levels,
and product preferences change, then the consequences always impact on profitability. Knowing
which factors are controllable, and those which are not, is critical to survival.

148

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Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.1

16.
17.
18.
19.
20.
21.
22.

Business planning
Research and understand customer base dynamics.
Evaluate competitors and competitive strategies.
Adapt to the evolving needs of customers.
Critically view pricing strategy.
Clarify and secure buying channels.
Ensure that managers are able to properly execute the business plan.

23.
24.
25.
26.
27.
28.
29.

Cost efficiencies
Reducing costs,
Negotiating better input prices and supply sources,
Developing supply chain efficiencies,
Researching innovative products which cost less to produce,
Developing business models with variable scenarios,
Increasing margins.

30.
31.
32.
33.
34.
35.
36.
37.

Investment in cost reduction systems
Systems investments for cost and strategic growth initiatives
IT systems for customer relationship management
Enterprise resource planning software
Automated business intelligence and forecasting systems
Mobile payments
Cross-sector partnerships and alliances
Integrated IT systems

38.
39.
40.
41.
42.
43.
44.
45.
46.
47.

Market Pricing
Consumers’ pricing propensity research
Competitive pricing benchmarks
Input costs and scenarios
Inflation
Review of pricing strategy variables
Dynamic Product Pricing
Review of sustainability of discounted prices
Pricing baseline for consumers
Short, Medium, and Long term pricing strategies for product groups

48.
49.
50.
51.
52.

Product Value Proposition
Consumers’ perceived product values
Value promotions effects on consumers
Level of value required by consumers
Short, Medium, and Long term product value strategies for product groups

Cash and Working Capital
The basis of most of the financial difficulties amongst retailers is the shortage of cash or refinancing
options. Retailers often did not sufficiently plan for lean times. Retail businesses often have
insufficient funds to invest in stock, refurbish stores or meet their store overheads.
There is evidence in many countries of a crisis in the cashflow of retailers.
For many retail sectors sales are highly seasonal; whether that is fashion or style based, holiday
based, Christmas, or depended on the weather. In each case the sales achieved at these peak
periods will dictate overall cashflow, margins, and the funds available for re-stocking and capital
investments for the entire year.
Expert and Industry Appraisal of 3 Suisses International Group:
53. Price Discounting & reduced gross margins
54. Seasonal / Peak sales success
149

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3 Suisses International Group - France
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.

Current financial year sales
Input product prices
Re-stocking finances
Increased Variable Costs
Increased Fixed Costs
Capital Investment financing
Cash constraints
Availability of third party / lender capital investment
Availability of third party / lender working capital
Excess inventory position
Further potential price markdowns
Further potential reduced margins

Cash management
Optimising cash management is the key to retail management in the present economic conditions.
Maximising cash flow and working capital by strict budgeting and benchmarking should be the focus
for all managers. The maintenance of sufficient cash balances and the identification of unforeseen
calls on cash together with specific and timely plans for corrective actions must be a fundamental
goal.
Expert and Industry Appraisal of 3 Suisses International Group:
67.
68.
69.
70.
71.
72.
73.
74.
75.

as an Excel file: Part_L.1

Visibility of financial situation
Cash management systems
Short and medium term cash flow forecasting processes
Identification of future cash calls
Tax planning & tax relief
Reduction of variable costs
Cash retention mechanisms
Working capital management
Systemised Cash Controls

Retailing Operations
Operational efficiencies, continual systems improvement, better customer service, exceeding
customer expectations, are the focus points for all retailers.

Evolving customer expectations
Customer expectations are continually evolving. With the increased use of mobile technology, online
transactions and contactless payment options retailers are able to harvest considerable costs
savings; however retailers need to adapt to enable transaction effectiveness and product deliver to
the customer. Sales should be improved by developing or enhancing multi-channel strategies.
Just as payment preferences amongst customers are changing, so too are their lifestyles, product
preferences and economic circumstances. Retailers much continually research their target customer
demographic and the overall market circumstances to have the data necessary to adjust product
offerings, merchandising, and service levels in order to maximise the appeal of their business.
Value engineering, product sizes, and product quality options help retailers both to maintain margins
and satisfy customer segments. The proper communication of such engineered product options to the
target customer demographic is essential to maintain the integrity of the business. Integrated
communications, promotional planning, and transparency help to maximise customer confidence.
Expert and Industry Appraisal of 3 Suisses International Group:
76.
77.
78.
79.

Payment options
Ease of purchase
Transaction speed
Product delivery
150

as an Excel file: Part_L.1

3 Suisses International Group - France
80.
81.
82.
83.
84.
85.
86.
87.
88.
89.
90.

Research collection
Product offerings
Merchandising & POS
Service levels
Value engineering
Product size variations
Product quality options
Integrated communications
Promotional planning
Transparency
Customer confidence

Financial Planning
Indirect taxation is frequently a retailer’s third largest burden on cashflow and as such, has a major
influence on the company's operation and financial performance. Retailers are now more able to use
multi-channel selling and distribution, and transfer pricing mechanisms, to optimise both cashflow and
retail prices. The use of distribution from lower cost sales or value added tax jurisdictions may provide
significant opportunities to improve margins and cash management.
Expert and Industry Appraisal of 3 Suisses International Group:
91.
92.
93.
94.
95.
96.

as an Excel file: Part_L.1

Use of multi-channel selling
Use of offshore distribution channels
Use of efficient price transfer mechanisms
Use of capital allowances and incentives
Tax incentives for fixed asset expenditures
Incentives for ‘green’ investments

Data management
Effective data management and its use as a vital resource can greatly assist retailers. In conjunction
with this is the absolute need for data security. Recent breaches in data security at high profile
retailers have highlighted the importance of adequate protection of customer data. The retail sector is
particularly vulnerable to cyber-attack, considering the huge amount of customer data held from
online shopping, loyalty schemes and other marketing incentives. Adverse publicity about stolen data
will damage reputations and potentially could damage sales revenues.
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.1

97. CRM systems
98. Data security
99. Secure systems
100.
Data leakage prevention

Supply chain efficiencies
Retailers are especially prone to inefficiencies in the supply chain and failures at any point can have a
significant impact on financial performance. The inability to move the right products to the right
locations at the right time can compromise retailers, damage customer relations and reduce margins.
Supplier relations and purchasing efficiencies:
Expert and Industry Appraisal of 3 Suisses International Group:
101.
102.
103.
104.
105.
106.
107.

Logistic operations
Warehousing & distribution
Inventory control systems
Ethical sourcing
Sustainable procurement
Supply chain perspectives
Sustainability strategy
151

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3 Suisses International Group - France
108.
109.
110.
111.

Social responsibility in procurement
Supplier risk reviews
Project management capacity
Performance requirements

Controls
Many recent corporate failures were as a result of ineffective control on stock, cash and management
information. Know what is happening in the business on a day-to-day basis through the right
management information and act on it before it’s too late.
Expert and Industry Appraisal of 3 Suisses International Group:
112.
113.
114.
115.
116.
117.
118.
119.
120.
121.
122.
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as an Excel file: Part_L.1

Retail controls
Key retail indicators
Customer requirements
Customer preferences
Product offering adjustments
Stock selection
Selling space allocation
Cash controls of working capital
Debtor & Creditor days
Invoice discounting
Supplier & procurement alternatives
Contingency plans & systems

Stakeholder Management
A company’s strategic plans should include mechanisms to support, and in turn retain the support of,
key stakeholders; especially in tough economic times, when support from stakeholders, from
investors to creditors are critical. Ideally one maintains a dialogue with all the stakeholders, and the
more adept one is in this respect the more one is likely to succeed in the long term.
Expert and Industry Appraisal of 3 Suisses International Group:
124.
125.
126.
127.
128.
129.
130.
131.
132.
133.
134.
135.

as an Excel file: Part_L.1

Shareholders
Bankers
Landlords
Suppliers
Trade Creditors
Insurers
Financial services providers
Tax authorities
Regulators authorities
Employee relations
Public Relations
Customer communications

Value Preservation
Retailer financial health will range from intensive care in an effort to turn the business around, to
stable good health, to vigorous and expansive acquisition activity. However, whatever the health of
the company, the key driver will be the preservation of value.
The current economic circumstances have seen some failures and much stagnation which
encourages restructuring to decrease costs or increase margins. Albeit there are also a number of
retailers for whom this period will provide an opportunity to expand their business through M & A.
152

3 Suisses International Group - France
For retailers in a precarious financial position one strategy is to consider finding shelter from the storm
through capital restructuring or creditor arrangements; and if that fails then a white knight take-over. In
these circumstances the preservation of any residual values becomes even more critical.

eCommerce & Multi-Channel Retail Strategy
Retailers must re-position themselves as Omni-channel or Multi-channel operations which offer
customers a compelling product, an excellent value proposition, the best service and ease of access.
This requires a variety of definite strategies:Expert and Industry Appraisal of 3 Suisses International Group:
136.
137.
138.
139.
140.
141.
142.
143.
144.
145.
146.
147.
148.
149.
150.
151.
152.
153.
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Optimal product assortment
Store by store inventory planning
Sale or return and returns policies
Consignment stock arrangements
Pricing strategy across channels
Online user experience
Multi-channel user experience
Cross-channels marketing plans
Support operations
Order fulfilment systems
Technologies to support these operations
Skills and organisational structure
Identification of inter-related business drivers
Simplification and merging of operational activities
Business case and financial plan to implement the strategies
Supplier terms
Identification of working capital cycles
Real-time data analysis to reduce the forecast cycle from monthly to daily
Real-time evaluation of action scenarios and outcome forecasting

153

3 Suisses International Group - France

Part L.2 : Retail Marketing Strategy
Elements in Retail Strategy
Audit of Retailer Strategy by Expert Appraisal:
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.2

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.

Target Markets
Customer Needs
Retail Formats
Method for Satisfying Needs
Bases for Building Sustainable Competitive Advantage
Defending Position Against Competitors
Methods for Segmenting Markets
Buying Situations
Benefits Sought by Customers
Customers Demographics
Customers Location & Geographic
Customers Lifestyle
Customers Psychographics

14.
15.
16.
17.
18.
19.
20.
21.

Develop a Sustainable Competitive Advantage:
Dropping the price of merchandise
Better store locations
Selling more popular merchandise
Increasing levels of advertising
Attracting & training better store personnel
Paying higher wages and incentives
Providing better customer service

22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.

Internal and External Bases for Competitive Advantage:
Sources of Capital
Vendors & Suppliers Terms
Retail Operation
Low Cost
Large Size
Efficient Distribution
Efficient Operations
Unique Knowledge
Loyal Employees
Customers Base Improvement
Creating Store Loyalty
Mental and Emotional Attachments to the Store brand

35.
36.
37.
38.
39.
40.
41.
42.

Elements in a Strong Brand:
Top of the Mind Awareness
Associations with Brand/Store Name
Methods Used to Develop a Strong Brand
Massive Exposure
Symbols to Reinforce Image
Consistent Positioning Creating Strong Associations
Limited Brand Extensions

43.
44.
45.
46.
47.

Supplier Relationships:
Low Cost
Efficiency Through Coordination
Electronic Data Interchange (EDI)
Collaborative Planning and Forecasting to Reduce Inventory and Distribution Costs
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3 Suisses International Group - France
48.
49.
50.
51.

Exclusive Sale of Desirable Brands
Special Treatment
Early Delivery of New Styles
Shipment of Scare Merchandise

52.
53.
54.
55.
56.
57.
58.
59.

High Quality Customer Service:
Achievement goals
Employees are Not Machines
Consistent Personnel Policies
Retail Sales Personnel of good quality
Hiring Good People at Higher Wages
Continual Training programme
Organisational Culture

60.
61.
62.
63.
64.
65.

Growth Opportunities:
Market Penetration
Market Expansion
Retail Format Development
Diversification
Related vs. Unrelated markets

66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.

Retail Planning Process:
Defined business mission
Situation audit
Market attractiveness analysis
Competitor analysis
Self-analysis
Identification of strategic opportunities
Evaluation of strategic alternatives
Establishment of specific objectives and resources allocation
Evaluation of performance
Development of the retail mix to implement strategy

Elements in the Market Analysis
Expert and Industry Appraisal of 3 Suisses International Group:
77.
78.
79.
80.
81.

Market Factors:
Size
Growth
Seasonality
Business cycles

82.
83.
84.
85.
86.

Competitive Factors:
Barriers to entry
Bargaining power of vendors
Competitive rivalry
Threat of superior new formats

87.
88.
89.
90.
91.

Environmental Factors:
Technology
Economic
Regulatory
Social

92. Analysis of Strengths & Weaknesses:
93. Management capabilities
94. Financial resources
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3 Suisses International Group - France
95. Locations
96. Operations
97. Merchandise
98. Store Management
99. Customer loyalty
100.
Five Forces:
101.
Bargaining Power of Vendors
102.
Barriers to Entry
103.
Competitive Rivalry
104.
Threat of Substitution
105.
Large Customers
106.
107.
108.
109.
110.
111.
112.

Using Market Attractiveness:
Competitive Position Matrix
Defined strategic opportunities
Identification of market attractiveness and competitive position factors
Assigned weightings based on importance of factors
Rated opportunities on market attractiveness and competitive position
Calculated scores and evaluate opportunities

113.

Evaluation of Retail Market Opportunities:

114.
115.
116.
117.
118.

Retailing Concept:
Customer Orientation
Value-drivers
Coordinated Effort
Goal-Oriented

119.
120.
121.
122.
123.
124.
125.

Relationship Retailing:
Seek long-term relationships with customers
Focus on customer satisfaction over time
Satisfaction through meeting or exceeding customer expectations
Customer Equality
Customer Value
Core Customers identification

126.
127.
128.
129.
130.
131.
132.
133.
134.

Retail Value Chain:
Bundle of benefits provide to consumers
Ambience
Quality of products
Brands offered
Discounts/good prices
Shipping
Convenient Location
Service

135.
136.
137.
138.
139.
140.
141.
142.
143.
144.
145.
146.
147.

Strategic Planning Checklist:
Situational Analysis
Opportunities, threats, mission
Set Objectives
Sales, profits, image/positioning
Identify Target Market
Mass marketing -v- Concentrated -v- Differentiated
Aggregation -v- Segmentation
Identify Specific Tactics
Control Process/ Retail Audit System
Strategies and tactics are evaluated and revised
Feedback
Performance measures (turnover, sales, profits)

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3 Suisses International Group - France
148.
149.
150.
151.

Strategic Planning Factors
Develop Broad Strategy
Competition (Intratype –v- Intertype)
Sustainable competitive advantage

152.
153.
154.
155.
156.
157.

Sustainable Factors:
Price
Location
Vendor relations
MIS-technology
Low cost operations

158.
159.
160.
161.
162.

Business Grow Factors:
Market Penetration
Present customers, same segment
Market Expansion
Existing format to new customers (new geographic area or demographic group)

163.
164.
165.
166.
167.

Future Business Growth:
Retail Format Development
New format to existing customers
Diversification
New format to new segments

168.
169.
170.
171.
172.
173.

Institutional Change in Retailing
Wheel of Retailing
Accordion Theory
Dialectic Process
Natural Selection
Retail Life Cycle

174.
175.
176.
177.

Wheel of Retailing Strategy considerations:
New types of retailers enter a market as low-margin, low-price, low status merchants
These retailers gradually trade up which increases their operating costs
Retailers become high cost merchants and then are vulnerable to new competitors

178.
179.
180.
181.

Retail Accordion Theory Strategy considerations:
Broad-based outlets with wide assortment
More specialised with narrow assortment
Back to wide assortment

182.
183.

Dialectic Process Strategy considerations:
Retailers mutually adapt in the face of competition from “opposites”

184. When challenged by a competitor with a differential advantage, the established retailer will
adopt strategies and tactics in the direction of that advantage (making the innovator less
attractive)

185.
186.
187.
188.

Natural Selection and Adaptive Behaviour Strategy considerations:
Environmental need for a certain kind of retailing institutions which will evolve
Need ceases to exist and the institution will tend to disappear
Retailers that effectively adapt to environmental changes are most likely to survive

189.
190.
191.
192.
193.

Retail Life Cycle Strategy considerations:
Introduction
Growth/ Accelerated Development
Maturity
Remodel stores
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3 Suisses International Group - France
194.
195.
196.
197.
198.
199.

Lower costs
MIS – technology
Lower prices
Re-evaluate operational practices and service
Value delivery
Decline

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3 Suisses International Group - France

Part L.3 : Strategic Planning in Retailing
Chapter 3
Even the largest retailer sometimes drops the ball and is left without a defined and well-integrated
strategy and is then left unable to cope with the marketplace.
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.3

The retailer’s process of strategic retail planning:
1. Provide a thorough analysis of the requirements for doing business for different product and
market segments
2.

Outline the retail goals

3.

Determine how to differentiate itself from competitors and develop an offering that appeals
to each customer segment

4.

Fully understand the legal, economic, and competitive environment

5.

The retailer’s total efforts are coordinated

6.

Crises are anticipated and avoided

Overview of Strategic Retail Management
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.3

7. Retailing objectives
8. Building and Sustaining the Retailing Relationships
9. Strategic Planning in Retailing
10. Situation Analysis:
a. Capital requirements
b. Store-Based Strategy Mix
c. Web, Non-store-based, and other forms of multi-channel trading
11. Targeting Customers and Information Gathering:
a. Identifying and Understanding Consumers
b. Information Gathering and Processing
12. Store Locations:
a. Trading Area Analysis
b. Site Selection
13. Managing the Business:
a. Organisation and Human Resource Management
b. Operations Management: Financial
c. Operations Management: Operational
14. Merchandise Management and Pricing:
a. Developing Merchandise Plans
b. Implementing Merchandise Plans
c. Financial Merchandise Management
d. Pricing
15. Communicating with the Customer
a. Establishing and Maintaining a Retail Image
b. Promotional Strategy
16. Integrating and Controlling the Retail Strategy
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3 Suisses International Group - France

Situation Analysis
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.3

Situation analysis is an honest evaluation of the opportunities and threats facing the retailer:
17.

What is the firm’s current status?

18. In which direction should the retailer be heading?
a. Organisational mission
b. Ownership and financing
c. Management options
d. Goods / Service sold
19. Opportunities and marketplace openings
20. Market gaps retailers have not yet not capitalised on
21. Competitive threats
22. Adverse marketplace factors
23. Trend spotting
24. Customers satisfaction
25. Competitive advantages
26. Merchandising shifts
27. Store locations
28. Price points
29. Promotional strategy
30. Retailer image

Organisational Mission
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.3

The organisational mission is the retailer’s commitment to a type of business and to a distinctive role
in the marketplace.
31.
32.
33.
34.
35.
36.
37.
38.
39.

Attitude toward consumers
Attitude toward employees
Attitude toward suppliers
Attitude toward competitors
Attitude toward regulations
Is the business based on the goods and services sold or consumer needs?
Is the retailer a market leader or a follower?
Does the retailer seek a broad customer or a narrower customer base?
Does the retailer change company goals as a reaction to a dynamic retail environment?

40. Does the retailer have good organisational skills?
a. Strong customer service
b. Popular products
c. Community involvement
d. Excellent retail locations
e. Excellent execution in delivering products
f. Consistent delivery of its value proposition

Ownership and Management Alternatives
An essential aspect of situation analysis is assessing ownership and management alternatives.
Ownership is crucial because it dictates both the existing financial structure of the retailer and the
future availability of capital funding and/or how capital investments can be funded.

160

3 Suisses International Group - France
Management options range from the owner–manager to a complex arrangement of professional
managers. The size of the company can be irrelevant as is seen from many large multi-national
companies which are in fact controlled by one patriarchal figure who perceived himself as the OwnerManager, despite what the shareholders think.
Strategically, the management format also has a dramatic impact. With an owner–manager (actual or
perceived), planning tends to be less formal and more intuitive, and many tasks are reserved for that
person. With professional management, planning tends to be more formal and systematic. Yet,
professional managers are more constrained in their authority than is an owner–manager. In a
centralised structure, planning clout lies with top management or ownership; managers in individual
departments have major input into decisions with a decentralised structure.

Goods/Service Categories
The strategic plan is centred on the selection of goods/service categories, the lines of business, in
which the retailer operates.
Expert and Industry Appraisal of 3 Suisses International Group:
41.
42.
43.
44.

as an Excel file: Part_L.3

Type of business
Management abilities
Financial resources
Time constraints

Management Abilities
Management abilities depend on the aptitudes of the managers:
Expert and Industry Appraisal of 3 Suisses International Group:
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.

Experience of the type of business
Potential to be effective
Education & formal qualifications
Retail practices and policies
Previous experience
Initiatives
Reaction to competitive developments
Customer interaction
Staff interaction
Supplier interaction

161

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3 Suisses International Group - France

Financial Resources
Adequate projection of the financial resources needed is essential to the retailer.
Expert and Industry Appraisal of 3 Suisses International Group:
55.
56.
57.
58.
59.
60.
61.
62.
63.

as an Excel file: Part_L.3

Tendency to underestimate financial problems
Operational expenses controls
Profitability stages
Budget and expenditures controls
Miscalculations of costs of renovation or operation of existing facilities
Investment funding
Merchandise assortment funding & outlay
Inventory investment
Location & facilities investments

Time Constraints
Time constraints on managers differ significantly by goods or service category:
Expert and Industry Appraisal of 3 Suisses International Group:
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.

as an Excel file: Part_L.3

Automation of operations
Outsourcing of activities
Managing time-pressed customers
Store opening hours & shift patterns
Seasonal market factors
Self-service
Standardisation of operations
Formalisation of financial controls
Key service providers’ time constraints
Delegating of work to back-office operations
Levels of personal services
Staff shortages due to costs
Cash controls
Off-hours activities
a. Cleaning
b. Stocking shelves
c. Financial reconciliation

Objectives
The situation analysis leads to how the retailer sets objectives for the long-term and short-terms
performance targets required.
Expert and Industry Appraisal of 3 Suisses International Group:
Such goals relate to:
78.
79.
80.
81.
82.
83.
84.
85.

Sales
Profit
Satisfaction of stakeholders
Image
Increasing comparable store sales
Gross margins
Return on investment
Earnings per share

162

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3 Suisses International Group - France

Sales
Sales objectives are related to the volume of goods and services a retailer sells and includes:
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.3

86. Sales growth
87. Revenue stability
88. Market share
89.
90.
91.
92.
93.
94.

Short-term profits
Opening new units
Maintaining sales volume
Maintaining market share
Maintaining price lines
Market share by category sales

95.
96.
97.
98.

Discount sales strategies
Moderate price/units sales strategies
Prestige sales strategies
Price inflation

Profit
With profitability objectives the retailer will seek a minimum profit level during a designated period.
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.3

99. Pre-tax profit
100.
Return on investment
101.
Operating margin

Satisfaction of Stakeholders
Retailers typically strive to satisfy their stakeholders: shareholders, customers, suppliers, employees,
and regulators.
Expert and Industry Appraisal of 3 Suisses International Group:
102.

Shareholder satisfaction
a. Short-run
b. Long-run
c. Stable dividends

103.

Customer satisfaction
a. Criticism
b. Adaption

104.
a.
b.
c.
d.
e.
105.

Supplier relations
Favourable purchase terms
New products
Good return policies
Shipments
Cooperation

Labour relations
a. Absenteeism
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3 Suisses International Group - France
b. Treatment of customers
c. Staffing turnover
106.

Regulatory relations

Image Positioning
Image positioning is how the retailer wished to, and possibly is, perceived by consumers and others.
Expert and Industry Appraisal of 3 Suisses International Group:
107.
108.
109.
110.
111.
112.
113.

Innovative
Conservative
Radical
Specialised
Broad-based
Discount-oriented
Upscale

114.
115.
116.
117.

Image relative to retail category
Image relative to competitors
Image relative to product positioning
Image relative to positive consumer responses

118.
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.

Mass merchandising
Discount or value-oriented image
Wide and/or deep merchandise selection
Large store facilities
Low operating costs & stores
Economy outlets
Value-conscious shoppers
Popularity
Broad customer base
High customer traffic
High stock turnover

a.
b.
c.
d.
e.
f.
g.

Retailers Niche in the market
Specific customer segments
Segmented market
High level of loyalty
Chosen demographic
Stress factors other than price
Better customer focus
Convergence of product lines

119.

120.

Category incursion / cross-channel
a. Muddled value proposition
b. Convenience
c. Positioning changes

121.
a.
b.
c.
d.
e.

Retail positioning map
Price and service
Product lines offered
Price -v- service
Product assortment & selection
Customer service

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3 Suisses International Group - France

Selection of Objectives
Clearly set goals and a strategy to achieve:
Expert and Industry Appraisal of 3 Suisses International Group:
122.
123.
124.
125.
126.
127.
128.
129.
130.
131.
132.
133.
134.

as an Excel file: Part_L.3

Sales growth aspirations
Operating earnings per share
Capital expenditure goals
Market share requirement
Maintenance of supplier rating
Sales per square foot
Brands coverage
Flexibility
Adaption of goals
Competitive on price
Differentiation
Productivity
Management Focus

Checklist
Expert and Industry Appraisal of 3 Suisses International Group:
135.
136.
137.
138.
139.
140.
141.
142.
143.
144.
145.
146.
147.
148.
149.
150.
151.

Capital investment
Goodwill
Sales
Inventory levels
Profits
Customer base
Sales seasonality
Debts
Property
Storefronts
Store fixtures
Merchandise assortment
Advertising policy
Customer service policy
Pricing policy
Units & locations
Trading area overlaps of stores

165

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3 Suisses International Group - France

Identification of Consumer Characteristics
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.3

The retailer’s target market:
152. Mass marketing, selling goods and services to a broad spectrum of consumers
153. Concentrated marketing, zeroing in on one specific group
154. Differentiated marketing, aiming at two or more distinct consumer groups, with different
retailing approaches for each group
155.
156.
157.
158.
159.

Define target markets
Wide assortment of medium-quality items at popular prices
Narrow, deep product assortment at above-average prices
Multiple market segments
Unique goods and services for each market segment

Competitive advantages and strategy mix:
160.
161.
162.
163.
164.
165.
166.
167.
168.

Competencies of the retailer relative to competitors
Consumers target advantages
Store locations
Product quality
Advertising
Customer services
Product prices
Brands
Consumer behaviour

Overall Strategy
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.3

This involves two components:
169.
170.

controllable variables (the aspects of business the retailer can directly affect)
uncontrollable variables (those to which the retailer must adapt)

Controllable Variables
Expert and Industry Appraisal of 3 Suisses International Group:
171.
172.
173.
174.
175.

Store location
Managing the business
Merchandise management
Pricing
Communicating with the customer

166

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3 Suisses International Group - France

Store Location
Expert and Industry Appraisal of 3 Suisses International Group:
176.
177.
178.
179.
180.
181.
182.
183.
184.

as an Excel file: Part_L.3

Store location decisions
Store and/or non-store format
Competitor locations
Transportation access
Population density
Type of neighbourhood
Nearness to suppliers
Pedestrian traffic
Store composition

Managing the Business
Expert and Industry Appraisal of 3 Suisses International Group:
185.
186.
187.
188.
189.
190.
191.
192.
193.
194.
195.
196.
197.
198.
199.
200.
201.
202.
203.
204.
205.
206.
207.
208.
209.
210.
211.
212.
213.
214.
215.
216.

Retail organisation
Human resource management
Operations management
Task management
Defined policies
Resources management
Authority delegation
Managers’ responsibility
Managers’ rewards
Employee hiring
Employee training
Employee compensation
Employee supervision
Human resource management techniques
Job functions
Employee responsibility
Chain of command
Satisfaction of customers
Satisfaction of employees
Fulfilment of management goals
Asset management
Budgeting
Resource allocation
Store format and sizes
Store personnel use
Store maintenance
Energy management
Store security
Insurance
Credit management
Computerisation
Crisis management

167

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3 Suisses International Group - France

Merchandise Management and Pricing
Expert and Industry Appraisal of 3 Suisses International Group:
217.
218.
219.
220.
221.
222.
223.
224.
225.
226.
227.
228.
229.
230.
231.
232.
233.

as an Excel file: Part_L.3

Quality of the goods and services offered
Width of assortment
Product categories carried
Depth of assortment
Variety of products carried in any category
Buying decisions
Buying frequency
Buying terms
Suppliers
Purchase forecasting
Purchase budgeting
Accounting procedures
Inventory by type of merchandise
Assess of items sold and left in stock
Range of prices
Prices within each product category
Markdowns planning

Communicating with the Customer
Expert and Industry Appraisal of 3 Suisses International Group:
234.
235.
236.
237.
238.
239.
240.
241.
242.
243.
244.

as an Excel file: Part_L.3

Image creation
Image maintenance
Influence on consumer perceptions
Storefront
Store layouts and displays, floor colours, lighting, scents, music
Store sales personnel
Community relations
Advertising campaigns
Personal selling
Sales promotion
Publicity campaigns

Uncontrollable Variables
Expert and Industry Appraisal of 3 Suisses International Group:
245.
246.
247.
248.
249.
250.

Consumers
Competition
Technology
Economic conditions
Seasonality
Legal restrictions

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3 Suisses International Group - France

Consumers
Expert and Industry Appraisal of 3 Suisses International Group:
251.
252.
253.
254.
255.

as an Excel file: Part_L.3

Demographic trends
Lifestyle patterns
Tastes
Consumer trends and desires
Price range of customer purchases

Competition
Expert and Industry Appraisal of 3 Suisses International Group:
256.
257.
258.
259.
260.

as an Excel file: Part_L.3

Entry of competitors
New or established competitors
Competitors’ target markets
Competitors’ merchandising focus
Competitive edge

Technology
Expert and Industry Appraisal of 3 Suisses International Group:
261.
262.
263.
264.
265.
266.
267.

as an Excel file: Part_L.3

Computer systems
Inventory control
Checkout operations.
Warehouse
Transport of merchandise
Consumer ordering
Online activities

Economic Conditions
Expert and Industry Appraisal of 3 Suisses International Group:
268.
269.
270.
271.
272.
273.
274.
275.
276.

Unemployment
Interest rates
Inflation
Tax levels
Annual gross domestic product (GDP) growth
Economic factors
International economic factors
National economic factors
Provincial & local economic factors

169

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3 Suisses International Group - France

Seasonality
Expert and Industry Appraisal of 3 Suisses International Group:
277.
278.
279.

as an Excel file: Part_L.3

Seasonality
Weather
Cycle of demand

Legal Restrictions
Expert and Industry Appraisal of 3 Suisses International Group:
280.
281.
282.
283.
284.
285.
286.
287.
288.

as an Excel file: Part_L.3

Statutory laws and regulations
Competition laws
Fair trading practices
Zoning laws
Blue laws which limit the times during which retailers can conduct business
Construction codes
Consumer restrictions
Licensing
City / town jurisdictions

Integrating Overall Strategy
Expert and Industry Appraisal of 3 Suisses International Group:
289.

Coordinated approach

290.

Consistent approach

291.

Integrated strategy

292.

Systematically appraisal of uncontrollable variables

as an Excel file: Part_L.3

Legal Constraints on Retailers
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.3

293. Store locations and Zoning laws
294. Blue laws restrict the days and hours during which retailers may operate.
295. Environmental laws limit the retail uses of certain sites.
296. Door-to-door (direct) selling laws protect consumer privacy.
297. Local ordinances involve fire, smoking, outside lighting, capacity, and other rules.
298. Leases and mortgages require parties to abide by stipulations in tenancy documents.
299. Managing the Licensing provisions mandate minimum education and/or experience for
certain personnel.
300. Business Personnel laws involve non-discriminatory hiring, promoting, and firing of
employees.
301. Antitrust laws limit large firm mergers and expansion.
302. Franchise agreements require parties to abide by various legal provisions.
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3 Suisses International Group - France
303. Business taxes include real-estate and income taxes.
304. Recycling laws mandate that retailers participate in the recycling process for various
materials.
305. Merchandise Trademarks provide retailers with exclusive rights to the brand names they
develop.
306. Management and Merchandise restrictions forbid some retailers from selling specified
goods or services.
307. Pricing Product liability laws allow retailers to be sued if they sell defective products.
308. Lemon laws specify consumer rights if products, such as autos, require continuing repairs.
309. Sales taxes are required in most provinces or territories, although tax-free days have been
introduced in some locales to encourage consumer shopping.
310. Unit-pricing laws require price per unit to be displayed (most often applied to
supermarkets).
311. Collusion laws prohibit retailers from discussing selling prices with competitors.
312. Sale prices must be a reduction from the retailer’s normal selling prices.
313. Price discrimination laws prohibit suppliers from offering unjustified discounts to large
retailers that are unavailable to smaller ones.
314. Communicating Truth-in-advertising and -selling laws require retailers to be honest and not
omit key facts.
315. Customer Truth-in-credit laws require that shoppers be informed of all credit terms.
316. Telemarketing laws protect the privacy and rights of consumers regarding telephone sales.
317. Bait-and-switch laws make it illegal to lure shoppers into a store to buy low-priced items
and then to aggressively try to switch them to higher-priced ones.
318. Inventory laws mandate that retailers must have sufficient stock when running sales.
319. Labelling laws require merchandise to be correctly labelled and displayed.
320. Cooling-off laws let customers cancel completed orders.

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3 Suisses International Group - France

Tactical Decisions
Tactical or Short-run decisions for each controllable part of the strategy:
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.3

321.
Store locations and trading-area analysis which gauges the area from which
customers are drawn.
322.

Level of saturation in a trading area.

323.

Optimised relationships with nearby retailers.

324.

Positioning of new outlets.

325.

Clear chain of command from managers to store workers.

326.

Organisation structure on how personnel are hired, trained, and supervised.

327.

Asset management which track assets and liabilities.

328.

Budget spending controls.

329.

Operations systemisation.

330.

Merchandise management and pricing:

331.

Assortments and space allocations in each department.

332.

Innovative new merchandise.

333.

Liquidation of slow-moving items.

334.

Purchase terms negotiated and suppliers appointed.

335.

Selling prices reflecting the firm’s image and target market.

336.

Prices offer consumers choice.

337.

Adaptive actions to respond to higher supplier prices and react to competitors’ prices.

338.

Communicating with the customer:

339.

Storefront and display windows.

340.

Store layout and merchandise displays.

341.

Gaining consumer enthusiasm

342.

Looking fresh and modern.

343.

New products.

344.

React to changing seasons.

345.

Advertising placed during the proper time and in the proper media.

346.

Deployment of sales personnel varied by merchandise category and season.

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3 Suisses International Group - France

Controls
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.3

347.

Systematic process for analysing the performance of the retailer.

348.

Retail audits

349.

Strengths and weaknesses revealed as performance is reviewed.

350.

Identification of profit drivers.

351.

Identification of profit problems.

Feedback
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.3

352.

Management receives systematic feedback

353.

Positive feedback on sales low employee turnover.

354.

Negative on falling sales and high employee turnover.

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Part L.4 : Recession Strategy
Whatever politicians might say about the economic climate, and whatever their prognosis is for the
future, the fact is that economic conditions have radically changed in recent years, and are forecast to
remain difficult for retailers in the immediate future.
Recent retail bankruptcies, store closings, and increasingly vacant retail space is all too evident in
many countries.
The retail is one of the largest commercial sectors in all countries the effects of a retail downturn
ripples throughout the national economies of all countries. Consumer spending also accounts for 50
to 65% of most national economies and this is the key indicator of the state of a national economy.

Economic Conditions
The current economic conditions are not encouraging to retailers. It is normal in bad economic times
that the small retailers suffer, usually disproportionately, however there is also evidence that the
largest of retailer group are also suffering.
The factors which are effecting the economy also include rising commodity prices, rising product
prices, lower disposable incomes, lower savings rates, declining consumer spending, a housing
slowdown, and rising unemployment. All of these indicators guarantee that the period of strong retail
expansion and increasing profit margins and over for the foreseeable future. Retail is of course the
final link in the supply chain and as demand weakens the effects will ripple through the supply chain,
the logistic providers, and the manufacturing base.
The impact on manufacturing, distribution, and employment in other industries may endure for far
longer than the events that actually triggered the economic decline. As economic forces slow or stop
altogether, retail demand further weakens thus exacerbating the decline. In the end, the retail industry
as a whole is severely affected and here the losers will outnumber the winners.
Forecasts for retail are negative and it is probable that the retail sectors will not even meet the
lowered expectations of recent government forecasts.
Retailers will have to change their business planning and business models to survive in the long term.

Consumption Smoothing & Product Substitution
The basic economic concept of consumption smoothing can help understanding of how the retail
situation has developed and what can be expected next. Consumption smoothing refers to the
consumer’s preference to maintain a certain standard of living over time. Consumption Smoothing
also means consumers will use savings as a tool to compensate when incomes are low, or save more
when incomes are high, thus “smoothing” their consumption patterns. This does not mean that
spending will not increase or decrease as incomes levels change, but rather that the peaks and
troughs will be less pronounced.
The theory suggests that people will not match income reduction with an equivalent amount of
expenditure reduction, and vice versa. Instead they will mitigate income reductions by turning to credit
in bad times and by the same token they will not spend all their income in good times by turning to
savings products. Evidence of this trend can be found in the proliferation of credit cards and their
increased use in rough economic patches.
In that a certain amount of consumer consumption is fixed and does not vary with income, shortages
are made up by the liquidation of savings or increasing debt to maintain the habitual standard of
living. Financing personal consumption when income is decreasing comes down to a choice between
debt and equity, and most recently with the historic rise in housing values saw this framework altered.
As housing prices inflated, individuals had more paper wealth, and this triggered spending increases
by using the paper wealth as a real stream of income.
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Consumers felt wealthier and they spent more, thereby fuelling the expansion of consumption, which
in turn simultaneous stimulated the growth and inflation in the housing market. At the start of the
demand growth stage, consumers paid off credit card debt accumulated in the previous periods by
refinancing their homes. Unfortunately, real incomes did not rising during this period and many
consumers smoothed their new “wealthier” consumption levels with more credit card debt. Many
households refinanced their homes more than once during this expansion, only to be faced with the
reality of the situation when home prices did cannot continue to increase at the same rate and the
equity in the home did not have the same liquidity as traditional savings.
Consumers are not at a stage where they have liquidated much of their savings, and are unable to
obtain credit, and therefore must sustain a lower level of spending and accept a reduced standard of
living. This response to economic times entrenches the downturn, and increases its duration.
Whereas Consumption Smoothing explains the fundamental choices behind savings and spending for
the consumer, it does not explain their specific spending decisions. During a recession, the typical
consumer is forced to make difficult decisions and economic trade-offs. In terms of consumption these
choices are often manifested as substitution between goods.
When budgets are constrained, the typical consumer will substitute down or choose inferior products.
Consumers will replace an expensive branded food item with a less expensive or own-brand food
item.
This trading down is a type of consumption smoothing allowing the consumer to get the same level of
consumption but at a lesser quality per unit. This theory of product substitution holds when there are
inferior products to trade down to and they are reasonably product substitutes for the more expensive
product. This process is frequently seen is the consumer’s choice of where to shop. While most
retailers are experiencing sales declines, discount retailers are thriving as people trade down from
expensive specialty and department stores to shop at discount and wholesale stores. These trends
have great impacts on a retailer’s strategy to survive a recession or downturn.

Managing Inventories & Costs
Profit maximisation at any given inventory level is a challenge in the best of economic times, during a
recession it becomes both more critical to success, and much more difficult. For small retailers and
independent stores this task is increasingly complicated due to payment terms and minimum order
sizes. It is necessary to reduce inventories for most retail establishments particularly those specialty
items which are not sold in any large numbers. Reducing existing inventory is typically done via store
sales and promotions which allow the retailers to convert some of their existing assets into cash.
Converting inventory to cash is an important first step; however, most retailers cannot sustain
themselves through a recession on existing inventories and therefore must place orders for new
inventory under a great deal of uncertainty.
Reductions in demand for new inventory sends ripples throughout the supply chain and this coupled
with high fuel prices results in larger minimum order sizes and less favourable terms for delayed
payment. The most prudent retail strategy under these circumstances is to order the minimum
necessary to sustain existing demand. This is a difficult balancing act as no retailer wants to take the
chance of being out of a mainstay item and losing a shopper to a competitive retailer. One strategy is
to have ample supply of items that sell daily or frequently, typically these are the items that get people
into the store. Another strategy is to vary selection, offering less high end items and more inexpensive
to moderately priced items for budget conscious consumers.
When inventories are limited care must be taken in the appearance of the store as sparse stocks can
convey a negative impression to customers. A well-stocked store implies quality and a successful
retailer and encourages better customer relations. When inventory is limited retailers need to convey
the same message of abundance and quality to consumers using reduced stocks; and this means
they must change the appearance of the store display areas. A redesign of the store layout can be
done inexpensively and with great results and impact. Optimal merchandising and use of space is one
cost-effective method which retailers have to counter tough times.
Suppliers facing their own constraints and recognising retailers need to pull back on inventory
spending will offer deep discounts to retailers who place large orders or pay their invoice quickly. For
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3 Suisses International Group - France
the majority of small and independent retailers these “deals” are not a good investment and can
exacerbate the effects of the downturn. The discounts are intuitively appealing to retailers; however
inventory is only as useful to a retailer as its ability to be converted to cash quickly. Even with a heavy
discount, on infrequently sold items there is little or no profit in the sale.
Retailers, big and small, must put their liquidity ahead of considerations such as profits and mark-ups
per unit. Often retailers are hesitant to liquidate or reduce inventory at a loss per unit in tough times
and therefore feel a cash-flow crunch. With no cash safety net or reserves, any additional shock to
their demand can make fundamental business expense payments difficult to maintain. During a
recession, many retailers are bankrupted for cashflow and liquidity reasons.
Many retailers were unprofessional and did not anticipate the downturn; many then compounded this
by underestimating its severity and duration. This demonstrated inadequate management and bad
business planning. These retailers were not realistic about their sales prospects and did not make the
difficult planning decisions necessary.
Retailers needed to analyze the inventory for the essential items and then actively reduce the stock of
non-essential items. Retailers needed to set limits for ordering new inventory and then produce firm
plans for on-going management, presentation and marketing of the inventory they had. The
successful retailers retained as many months of cash reserves as possible that would be sufficient to
cover basic expenses such as rent, utilities, and wages.

Audit of Retailer Economic Strategy by Expert Appraisal:
Expert and Industry Appraisal of 3 Suisses International Group:
1.
2.
3.
4.
5.
6.

Order size reductions
Supplier payment terms negotiated
Minimum order sizes negotiated
Company de-stocking
Store inventory reduction
Store sales & promotions

7.
8.
9.
10.

Product selection adjustments
Concentration on key product offerings
Product price point adjustments
Product price range adjustments

11. Store stock reductions
12. Store display redesigns
13. Store space re-allocations
14. Liquidity maintenance
15. Cash reserves
16. Cashflow maintenance
17. Assessment of business planning
18. Ability to predict economic conditions
19. Ability to forecast sales revenues

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3 Suisses International Group - France

Rising Costs & Raising Prices
Retailers in all sectors are experiencing rapidly rising operational costs and inventory prices. The
interaction of inflationary price increases at a time of recession and reduced sales makes it difficult for
retailers to make the compensatory product price rises for fear of losing even more revenue.
Product price increases cannot be passed on to consumers at a time when they are dramatically
cutting back on spending.
In a downturn retailers may be content to maintain their previous levels of income or profit; however
they do not want to make a loss. Thus the temptation is to raise product prices, if not immediately,
then immediately that there are signs of an up-turn in the economy. What many retailers fail to fully
appreciate are the effects of Consumption Smoothing, Demand Lag and Price Elasticity.
The demand formula in the perfect market states that an equilibrium product price is achieved when
supply meets demand. The price range achieved would ideally include a healthy mark-up for the
retailer. However when product prices become detached from normal demand then consumption
collapses.
Retailers need to very specifically monitor the Price Elasticity for each product group. Certain product
groups, such as basic foodstuffs, fuel, basic clothing, et cetera are price inelastic and retailers may
increase prices within an elasticity range. Many specialist and discretionary products however can be
price elastic, often in an irrational way which reflects consumer psychology more than marginal
propensity to consume. In addition products which have substitutes also tend to be price elastic as
price increases can be readily countered by the consumer through product substitution.
Thus for speciality retailers understanding the nature of demand for a product enhances their ability to
pitch a product price at the optimum level. Pricing products based on their elasticity, and likely product
substitution, is an essential retail tool during times of economic difficulty.
Without knowing how long input prices will be affected it is difficult for many retailers to incur the
additional expense to raise prices. This transaction cost theory is less applicable when input prices
are rising due to long term economic trends and less in response to price shocks. However, the
theory does point to an interesting dilemma for some retailers as it is more costly for them to raise
prices due to operational costs which then compounding the problem because the product is elastic
and the fall in demand costs as much as the operational costs incurred. When the economy moves
into a recession, consumers cut back on discretionary purchases and tend to look for product
substitutes to compensate them. Retailers can themselves hedge their bets by offering consumers a
choice of a high price product of a known value or a lower price substitute product; which in fact the
consumer will assume is a lower value product. Consumers know that prices are rising and they
know that retailers have to in turn raise their prices; if a retailer can offer the consumer an appropriate
option then the consumer is likely to remain loyal to that store.

Staff Costs
Audit of Retailer Economic Strategy by Expert Appraisal:
Expert and Industry Appraisal of 3 Suisses International Group:
20.
21.
22.
23.
24.
25.
26.
27.
28.

Total staff remuneration
Levels of employment
Overall labour costs
Staff lay offs
Full time staff
Part time staff
Full to part time staff transition
Employees per shift
Reduced store hours

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3 Suisses International Group - France

Checklist
Expert and Industry Appraisal of 3 Suisses International Group:
29.
30.
31.
32.

Excessive inventory financing
Profitable inventory
Unproductive inventory
Supplier Debt levels

33. Lower product price substitutes
34. Sales and promotions to liquidate unproductive inventory
35. Maintenance of sales levels
36. Maintenance of customer numbers
37. Price increases
38. Price decreases
39. Price elasticity
40. Inventory control
41. Stock levels
42. Retail layout redesign & reallocation
43. Retail space reduction
44. Strategic contingency plans
45.
46.
47.
48.
49.
50.

Customer dialogue mechanisms
Customer continuity
Customer loyalty programmes
Best prices policy
Best environment and service
Customer convenience, deliveries, opening hours

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3 Suisses International Group - France

Part L.5 : Strategic Planning in a Global Retail Context
The strategic planning challenge for both medium scale and large retailers is clear and increasingly
global. Global retail strategy must consist of several factors:

Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.5

1. The retailer must offer a competitively superior product as defined by local consumers.
2.

The retailer must develop superior economics across the value chain that delivers the
product to the local consumer.

3.

The retailer must execute in the local environment.

Planning Process and Global Retailing
Retailers looking to operate globally must consider:
Expert and Industry Appraisal of 3 Suisses International Group:
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

as an Excel file: Part_L.5

Assess the international potential
Focussing on assessing international potential
Getting data on the trends in the retail sector
The retailer’s domestic position in that retail sector
Effects that international activity may have on current operations
Status of in-house resources
Estimate of sales potential
Research & market intelligence.
Fundamental cultural considerations
Local partnering
Resource allocation

15.

Expert and professional advice and research:
a. Government assistance for export credits
b. Government agency assistance

16.

Selection of target countries:
a. Economic strength
b. Political stability
c. Regulatory environment
d. Tax policy
e. Infrastructure development
f. Population size
g. Cultural factors
h. Government regulations
i. Technological stage of the country

17.

Development and implement of the international retailing strategy:
a. Strategy identifies and manages objectives
b. Specification of tactics
c. Schedules of activities and deadlines
d. Allocation of resources
e. Sales offerings to be sold
f. Competitors’ strength
g. Conditions in target countries
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3 Suisses International Group - France
h. Key marketing factors
i. Exploitation of unique local conditions and circumstances
j. Local competition

Opportunities and Threats in Global Retailing
Opportunities
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.5

18.

Foreign markets used to supplement domestic sales.

19.

Foreign markets represent good growth opportunities when domestic markets are saturated
or stagnant.

20.

The retailer is able to offer goods, services, or technology not yet available in foreign
markets.

21.

Competition is less in foreign markets.

22.

Tax or investment advantages in foreign markets.

23.

Government and economic shifts allow entry to foreign firms.

24.

Communications is easier. Online activities enable the retailer to reach customers and
suppliers outside the domestic markets.

Threats
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.5

25. Cultural differences between domestic and foreign markets.
26. Management styles not easily adaptable.
27. Foreign governments place restrictions on some operations.
28. Personal income poorly distributed among consumers in foreign markets.
29. Distribution systems and technology inadequate.
30. Institutional formats vary too greatly.
31. Currencies and exchange rate problems.

Standardisation
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.5

32. Application of domestic strategies directly to the foreign markets
33. Standardisation of personnel systems
34. Standardisation of physical facilities
35. Standardisation of operations
36. Standardisation of advertising messages
37. Standardisation of product lines
38. Standardisation of factors to be adapted to local conditions and needs

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3 Suisses International Group - France

Factors Affecting Global Retailing Strategy
Factors which affect the international retailing strategy:
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_L.5

39.

Timing:
a. First to the market
b. Wrong-foot competitors with innovative products or systems
40. Balanced international program:
a. National market selection
41. Growing middle class:
b. Expandable income
c. Propensity to consumer new product offerings
42. Matching concept to market:
a. Developed markets
b. Quality offering
c. Style & fashion
d. Specialty operations
e. Developing markets
f. Discount / combination merchandise
g. Price
h. Assortment
i. Value
j. Convenience

Developed Markets
Expert and Industry Appraisal of 3 Suisses International Group:
43.

44.

as an Excel file: Part_L.5

Issues:
a. Increasing competition, deteriorating margins, and saturation
b. Consolidation and rationalisation (cost cutting), forcing poor performers out of the
market
c. New enabling technologies
d. Demanding customers
e. Limited growth
Implications:
a. Retailers must focus on maximising operational efficiencies, vendor relationships,
infrastructure, and technology
b. For growth, large retailers are expanding regionally and then globally into developed
or developing markets

Developing Markets
Expert and Industry Appraisal of 3 Suisses International Group:
45.

46.

as an Excel file: Part_L.5

Issues:
a. Minimal purchasing power per capita, yet strong economic growth, pent-up demand
b. Huge customer base, representing up to 70% of the world’s population
c. Infrastructure issues, transportation, communication, etc., may pose problems
d. Disorganised, fragmented retail structures that are vulnerable to new entrants
e. The number of indigenous large retailers is small to none
f. Strong protectionist measures may exist
Implications:
a. Tremendous opportunity for large retailers, limited competition, huge growth potential
b. Initial entry may need to be through intermediary, joint venture, etc.
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3 Suisses International Group - France

Market Entry Decisions
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.

Solo - joint ventures - franchisees
Store locations and facilities
Product selection
Service levels
Marketing support costs
Advertising to sales ratios
Retail space footage per capita
Brand image
Cluster strategies
Critical mass considerations
Specialist skills
Specialisations

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Part M.1 : Retailing Characteristics
This data is available on a Corporate basis for 3 Suisses International Group

Three factors in retailing are of particular relevance to businesses and each factor imposes unique
requirements on retailers.

Average Value of Sales Transaction
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.1

The average value of sales transaction per shopping trip is substantially less than US$100 for
department stores, specialty stores, and supermarkets. This modest level of income per customer visit
creates a need:
1. To tightly control the costs associated with each transaction (for example, payment card
costs, sales personnel, bagging, et cetera)
2. To maximise the number of customers drawn to the retailer
3. To ensure marketing expenditure is effective
4. To ensure that sales are augmented through promotions
5. To increase impulse sales by more aggressive selling
6. To keep operational costs in control
7. To automated and systemise inventory management
8. To ensure proper in-stock levels
9. To ensure proper product selection
10. To computerised inventory systems, stock control and stock ordering

Unplanned or Impulse Purchases
A large percentage of consumers do not look at advertising before shopping trips, do not prepare
shopping lists (or they deviate from the lists once in stores), and make fully unplanned purchases.
Such consumer behaviour shows the value of in-store displays, attractive store layouts, and wellorganised stores, catalogues, and web sites.
Expert and Industry Appraisal of 3 Suisses International Group:
11.
12.
13.
14.

as an Excel file: Part_M.1

Positioning of impulse products
Visibility of impulse products
Merchandise management of high-traffic areas
Stock control of impulse products

Retail Store Experience
Notwithstanding the inroads made by non-store retailers, most retail transactions are still conducted in
stores. Many consumers like to shop in person, they want to touch, smell, and/or try on products; they
like to browse for unplanned purchases; they feel more comfortable taking a purchase home with
them than waiting for a delivery; and they desire privacy while at home.
This store-based shopping orientation has implications for retailers; they must work to attract
shoppers to their stores and consider such factors as store locations, transportation, store hours,
proximity of competitors, product selection, parking, and advertising.
Expert and Industry Appraisal of 3 Suisses International Group:
15. Events and promotions to promote products
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3 Suisses International Group - France
16. Shopper interaction planning with products
17. Sales staff availability to sell discretionary products

Application of Retail Strategies
The application of a retail strategy provides the retailer with an overall plan which guides the retail
operation. It is designed to influence company’s business activities and its responses to market
forces, such as competition and the economy. All retailers, regardless of size or type, produce a
specific retail strategy which would include the following:
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.1

18. Definition of the type of business in terms of the goods or service categories and the specific
company orientation (such as full service or “no frills”).
19. Setting long-term and short- term objectives for sales & profit, market share, image, et cetera.
20. Determination of the customer sectors to target on the basis of their characteristics (such as
gender and income level) and needs (such as product and brand preferences).
21. An overall, long- term plan that gives general direction to the company and its employees.
22. Implementation of an integrated strategy that combines such factors as store locations,
product assortment, pricing, and advertising and displays to achieve objectives.
23. Evaluation of performance on scheduled basic.
24. Formalised mechanisms to correct weaknesses or problems when identified.

Audit of Retailer Strategies by Expert Appraisal:
25. Growth-oriented objectives
26. Use of cashflow generated to grow the business
27. Appeal to prime markets
28.
29.
30.
31.

Multi-format
Diversity of the customer base
Diversity and range of retail formats
Distinctive image

32. Retail Focus
33. Strong customer service and overall execution
34. Execution of the value proposition
35. Employee relations.
36.
37.
38.
39.
40.
41.

Innovation
Innovative products and services
Controlled labels
Speciality products
Sub-brands
In-store or on-site subsidiary products & services

42.
43.
44.
45.
46.
47.

Commitment to technology
Technology planning
Distribution channel technologies
Loyalty programs
Financial operations
Data mining
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48. Community involvement
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.

Constant performance monitoring
Performance indicators
Key financial metrics
Sales growth
Earnings per share
Debt to equity
ROI (return on investment)
Market share
Development of new control label products
Operating and administrative cost management

Application of Retail Concepts
Retailers, especially those with a large footprint, have to ensure a corporate culture to ensure a
vigorous and enforceable corporate culture which is customer focussed. This means an
institutionalised approach to strategy development and implementation which is value-driven and has
defined goals.
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.1

59. Customer orientation which determines the attributes and needs of customers and
endeavours to satisfy these needs to the fullest.
60. Coordinated effort which integrates all plans and activities to maximise efficiency.
61. Value-driven focus which offers good value to customers, whether it be upscale or discount.
This means having prices appropriate for the level of products and customer service.
62. Goal orientation which sets goals and then uses its strategy to attain them:
a. Clear concept of customer needs
b. Precise planning
c. Prices that reflect the value offered
d. Feedback from customers
e. Communicating with shoppers
f. Placing shoppers desires at the heart of the company’s success
g. Consistent strategies (brands, plentiful sales personnel, attractive displays, and
above-average prices for a quality service)
h. Offering prices perceived as “fair” and good value for the money
i. Development of the total retail experience
j. Development of customer service
k. Development of relationship retailing

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Total Retail Experience
Irrespective of how consumers may shop, at a discount retailer, at a convenience store, or at a fullservice firm, all these diverse customers have something crucial in common: each encounters a total
retail experience (everything from parking to the checkout counter) in making a purchase.
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.1

The ideal retail store characteristics are:
63.
64.
65.
66.
67.
68.

Appearance
Cleanliness
Convenience
Store ambience
Relaxed and comfortable
Good place to spend time and browse

The total retail experience includes all the elements in a retail offering that encourage or inhibit
consumers during their contact with a retailer. Many elements (for example, number of salespeople,
displays, prices, brands, and stocks) are controllable by a retailer; whereas other elements (for
example, adequacy of on-street parking and sales taxes) are not. If some part of the total retail
experience is unsatisfactory, consumers may not make a purchase, they may even decide not to
patronise a retailer again.
In planning strategy, the retailer must ensure that all strategic elements are in place for each of the
consumer segments they are targeting; with a total retail experience aimed at fulfilling each segment’s
expectations.

Customer Service
Customer service refers to the identifiable, but sometimes intangible, activities undertaken by a
retailer in conjunction with the basic goods and services it sells. It has a strong impact on the total
retail experience. Among the factors composing a customer service strategy are store hours, parking,
shopper-friendliness of the store layout, credit acceptance, salespeople, such amenities as gift
wrapping, rest rooms, employee politeness, delivery policies, the time shoppers spend in checkout
lines, customer follow-up, and so forth.
Satisfaction with customer service is affected by expectations (based on the type of retailer) and past
experience, and shopper’s assessment of customer service depends on their perceptions, not
necessarily reality. Different people may evaluate the same service quite differently.
The same person may even rate a retailer’s customer service differently at a different time, or in a
different location, because of its intangibility, though the service stays constant. Service varies widely
from one retailer to the next, and from one shopping channel to the next. The challenge for retailers is
to ask shoppers what they expect in the way of service, listen to what they say, and then make every
attempt to satisfy them.
Unfortunately, the customer is not always right. Just as retailers know they can never underestimate
the taste or intelligence of their customers, so too they can never overestimate the propensity of some
of their customers to engage in sharp practice. Of course, just as hotels cost into their pricing the fact
that some of their customers will steal the towels, so too those retailers whom offer a liberal refund
policy cost into their pricing the returns. Whereas in good times retail purchase return may be 4-6%, in
bad times this increases to 5-8%; and this has an even greater impact because retailers are already
suffering from a reduction in sales, margins and profits.
Clearly retailers must think very seriously about the balance of good customer service and excessive
pandering to customers.

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Relationship Retailing
Retailers have the best possible motive to engage in relationship retailing, whereby they seek to
establish and maintain long-term bonds with customers, rather than act as if each sales transaction is
a completely new encounter. The motive for adopting such relationships is of course that it is more
profitable for the retailer.

Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.1

Relationship retailing means concentrating on the total retail experience:
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
87.
88.
89.
90.
91.

Monitoring satisfaction with customer service
Staying in touch with customers
The majority of all buying decisions are not made until the consumer is standing in front of
a store shelf, choosing which of many brands to put in the shopping basket
Customer Respect Perceptions
Trust in customers
Stand behind products
Deal with customer problems
Frontline workers empowered to respond properly to a problem
Provide suitable product guarantees
Keep commitments to customers
Sufficient stocks
Value customer time
Facilities and service systems convenient and efficient for customers to use
Employees understand that serving customers supersedes all other priorities
Communicate with customers respectfully
Store information helpful
Advertising truthfulness
Contact personnel professional
Treat all customers with respect, regardless of their appearance, age, race, gender, status,
or size of purchase or account
Special precautions to minimise discriminatory treatment of certain customers
Thank customers for their business
Respect employees
Ensure that employees are respectfully treated by customers

To be effective in relationship retailing, one should consider two factors:
92. It is harder to make new customers than to make existing ones happy. For a retailer to gain in
the long run, by attracting shoppers, making sales, and earning profits); the customer must
also gain in the long run, by receiving good value, being treated with respect, and feel
welcomed in the store.
93. The advances in information technology mean that it is now much easier to develop a
customer database with information on shopper’s attributes and past shopping behaviour.
On-going customer contact can be better, more frequent, and more focused.

Audit of Provider Concepts by Expert Appraisal:
94.

Customisation of product offering. No more one size fits all. Retailers must adopt a more
robust portfolio approach to the market to appeal to the multi-channel consumer mind-set.

95.

Market power of the Majors. All retailers must come to terms that the majors are here to
stay and that they will continue to dominate almost every national market in the world.

96.

Supercentres are here to stay because they are merely the reflection of consumer choice.

97.

Speciality Retailers have to develop concepts to both work with supercentres and to offer
alternatives to the supercentres.
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98.

Department stores will find it difficult to survive the mass retailers and lifestyle specialists
and will need to re-invent themselves.

99.

Shopping malls will need to change to maintain their market share.

100. Compressed lifecycles for products, stronger retail concepts, and global brands mean the
days of the large, mass-merchandised specialty chain are over.
101. Experiential retailing concepts will mix context and commerce in the future.
102. E-commerce will act as more of a vehicle for retailing than as the cash register. The
majority of sales will continue to be channel through retail stores.
103. Consumers will embrace new technologies that give them better information and more
control over the shopping process.
104. Stores and sales staff will have greater capabilities as retailers adopt technologies to better
utilise retail space and allow greater employee productivity. Over time, some smart store
solutions will displace human resources with technology.
105. M-commerce remains a mainly a B2B (business to business) than B2C (business to
consumer) sales method. The consumer is still attracted to more tangible methods of
purchasing and the store experience.
106. Globalisation of retailers will accelerate as national borders disappear and trade is deregulated and liberalised.
107. As retailers become more globalised they will seek alternative and more secure sources of
supply and this will mean that retailers become more involved in manufacturing.
108. Retailers will become brand managers as the search for competitive differentiation
accelerates. This will include more own branding, higher quality own brands and the
ownership of stand-alone brands.
109. Retailers will Brand-Share by integrating with complimentary retail brands, sharing
customer bases and leverage location strength through innovative store-within-a-store, or
brand-sharing, partnerships.
110. Retailers will attempt greater Brand Extension and seek to extend their brand into other
consumer and business markets thereby transcend competitive boundaries
111. Suppliers will strive to become providers of best-in-class categories as they take on an
increasing number of activities that traditionally have been the responsibility of the retailer.
112. As more suppliers get locked out of traditional retail channels, supplier direct to consumer
will become a more viable scenario for the future.
113. In a buyer’s market, where technology is changing the dynamics of the buyer–seller
interface, the relationship between retailers and consumers will become much more
symmetrical and will favour the consumer.
114. For Retailers and Suppliers alike, survival will mean developing a New Concept of their
business model rather than just trying another redesign.

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Part M.2 : Relationships in Retailing
This data is available on a Corporate basis for 3 Suisses International Group

Retailer must strictly apply the concepts of Value and Relationship so that customers strongly believe
that the firm offers good value for the money, and that both customers and channel members want to
do business with that retailer.

Consumers demand better value from the shopping experience.
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.2

1. Time and budget constrain consumers and they spend less time shopping, make fewer trips,
visit fewer stores, and shop more purposefully.
2. Consumers use different retail formats for different needs. Specifically, they split the
commodity shopping trip from the value-added shopping trip.
3. Consumers are more sceptical about price. Under the barrage of sales, price has lost its
meaning; gimmicks have lost their appeal. To regain consumer confidence, pricing by
retailers and manufacturers alike must become clearer, more sensible, and more
sophisticated.
Relationship retailing with regard to customers and channel partners, the differences in relationship
building between goods and service retailers, technology and relationships, and ethics and
relationships are considerations which will provide value.

Value & the Value Chain
In many channels of distribution, there are several parties: manufacturer, wholesaler, retailer, and
customer. These parties are most apt to be satisfied with their interactions when they have similar
beliefs about the value provided and received and agree on the payment for that level of value.
From the perspective of the manufacturer, wholesaler, and retailer, Value is embodied by a series of
activities and processes, the Value Chain, that provides a certain value for the consumer. It is the
totality of the tangible and intangible product and customer service attributes offered to shoppers. The
level of value relates to each retailer’s desire for a fair profit and its market niche (such as discount vs.
upscale).Where firms may differ is in rewarding the value each provides and in allocating the activities
undertaken.
From the customer’s perspective, Value is the perception the shopper has of a value chain. It is the
customer’s view of all the benefits from a purchase (formed by the total retail experience). Value is
based on the perceived benefits received versus the price paid. It varies by type of shopper. Priceoriented shoppers want low prices, service-oriented shoppers will pay more for superior customer
service, and status-oriented shoppers will pay a lot to patronise prestigious stores.

Derived from the Customer Surveys:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_M.2

4.

Customers always believe they got their money’s worth

5.

Customers perceive the level of value provided is the same as the retailer intends.

6.

Customer Segments confirm that they receive the desired Value. Value is desired by all
customers; however, it means different things to different customers.

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7.

Consumers believe that the retailer’s prices have moved close to competitors. Comparison
shopping for prices is very easily done online and thus prices have moved closer together
for different types of retailers.

8.

Consumer believe that the Retailer is differentiation and the retailer is not perceived as a
“me too” retailer.

9.

Consumers believe that there is a specific value/price level for each product offering.

10.

Consumers believe that the Retailer can command a higher price for the same article by
adding better customer service.

The retail Value Chain represents the total bundle of benefits offered to consumers through a channel
of distribution. Consumers are only concerned with the results of a value chain, not the process.

Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_M.2

Derived from the Customer Surveys:
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.

Store location
Parking
Retailer ambience
Level of customer service
Products carried
Brands carried
Product quality
In-stock position
Delivery or shipping
Prices
Retailer’s image

Consumer visible Value Chain elements:
22.
23.
24.
25.
26.
27.
28.
29.

Display windows
Store hours
Sales personnel
Point-of-sale equipment
Upscale store ambience
Plentiful sales personnel
Shopping carts
Self-service & self-check-out

Behind the counter Value Chain elements:
30.
31.
32.
33.

Store location planning
Credit processing
Warehousing
Merchandising decisions

There are three aspects of a value-oriented retail strategy:


expected,
augmented, and
potential

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Audit of Value Chain Attributes by Expert Appraisal:
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.2

34. Expected retail strategy (the minimum Value Chain elements a given customer segment
expects from the retailer; failing which, customer dissatisfaction will cause the retailer to lose
customers):
a. Store cleanliness
b. Convenient hours
c. Well-informed employees
d. Timely service
e. Popular products in stock
f. Parking
g. Returns privileges
35. Augmented retail strategy (extra Value Chain elements that differentiate the retailer from
others and are the key to continued customer patronage):
h. Exclusive brands
i. Superior salespeople
j. Loyalty programs
k. Delivery
l. Personal shoppers
m. Special services
n. Valet parking
36. Potential retail strategy (Value Chain elements not yet perfected by the retailer’s competitors
in the same category were the retailer to capitalise on potential features gain a head start
over their adversaries):
o. 24/7 store hours
p. Unlimited customer return privileges
q. Full-scale product customisation
r. Instant fulfilment through in-store orders accompanied by free delivery
s. In-mall facilities
t. Transportation
Retailers have to avoid the potential pitfalls of a value-oriented retail strategy.

Audit of Value Chain Attributes by Expert Appraisal:
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.2

37. Planning value with just a price perspective. Value is tied to two factors, benefits and prices;
however most customers expect the retailer to absorb credit card costs even on discount or
low margin products.
38. Providing value-enhancing services that customers do not want and therefore will not pay
extra.
39. Competing in the wrong value / price segment. Retailers must ensure that their pricing points
are commensurate with the value offered, and that the value / price position reflect consumer
perceptions of the retail segment.
40. The belief that augmented elements alone create value. Retailers may offer a high-end
benefit not available from competitors, however this will not compensate for the unavailability
of more basic like adequate parking.

41. Paying lip service to customer service. Retailers may believe that the customer is always
right; however they sometimes act contrary to this philosophy. This may include having a high
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turnover of sales staff, charging for returned goods that have been opened, and not offer
ordering of out of stock items.

Value-Oriented Retailing Checklist
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.2

42. Defined values from the consumer perspective
43. Clear value / price point
44. Value position which is competitively defensible
45. Channel partners capable of delivering value-enhancing services
46. Distinction between expected and augmented value chain elements
47. Identification of meaningful potential value chain elements
48. Value-oriented approach aimed at distinct market segments
49. Consistent value-oriented approach
50. Value-oriented approach effectively communicated to the target market
51. Target market’s clear identification of the retailer’s positioning strategy
52. Retailer’s positioning strategy considers trade-offs in sales versus profits
53. Retailer sets customer satisfaction goals
54. Retailer periodically measure customer satisfaction levels
55. Retailer careful to avoid the pitfalls in value-oriented retailing
56. Retailer always looking out for new opportunities that will create customer value

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Part M.3 : Customer Relationships
This data is available on a Corporate basis for 3 Suisses International Group

Relationship Retailing is the process whereby retailers seek to form and maintain long-term bonds
with customers, rather than act as if each sales transaction is a new encounter with them. For
relationship retailing to work, enduring value-driven relationships are needed with other channel
members, as well as with customers; developing these is a challenge.

Customer Relationships
Loyal customers are the backbone of a business and in retailing this can have profound effects on
profitability as 30% of a retailer’s customers will represented over 70% of a retailers profits.

In relationship retailing, there are factors to keep in mind:
Expert and Industry Appraisal of 3 Suisses International Group:
1.
2.
3.
4.
5.

as an Excel file: Part_M.3

The customer base
Customer service
Customer satisfaction
Loyalty programs
Defection rates

The Customer Base
Retailers must regularly analyze their customer base in demographic and other terms:
Expert and Industry Appraisal of 3 Suisses International Group:
6.
7.
8.
9.
10.

Population demographics
Lifestyle trends
Attitudes toward and reasons for shopping
The level of loyalty
The mix of new versus loyal customers

11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.

Populations aging
Household size
Population mobility
Population location & urbanisation
Working population distribution by gender and age
Population distribution by social class and income levels
Immigration and emigration
Consumer gender roles
Market segment diversification
Interest in spending time shopping
Use of time-saving goods and services
Consumer demands of retailers

There are various factors that influence shopping behaviour:

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23. More women than men enjoy shopping
24. Men shop more quickly than women
25. Shopping behaviour of younger men (ages 18 to 34) is more similar to their female
counterparts
26. Time constraints
27. Consumers time spent during shopping by gender type by type of shopping area
28. Consumers time spent during shopping by gender type by type of retailer
29. Purchases by gender type by type of shopping area
30. Purchases by gender type by type of retailer
31. Consumers reasons to shop by type of retailer
a. See and feel the product
b. Product availability
c. Ease in finding products
d. Confidence in products
e. Ease of shopping
f. Convenience of the location
g. Price
h. Assortment
i. Quality of merchandise
j. Store physical attributes
k. Product labelling

Core Customers
It is worth nurturing relationships with some customers rather than with others; these are the retailer’s
core customers, being their most regular customers. This group of customers need to be identified,
tagged and retained.

Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.3

32. Customers that are the most profitable and the most loyal
a. Spend more money
b. Pay their bills promptly
c. Reasonable in their customer service requests
d. Prefer stable, long-term relationships
33. Customers that place the greatest value on what the retailer has to offer
a. Customers that prefer the retailer’s products
b. Customers that prefer the retailer’s customer services
c. Customers that prefer the retailer’s special strengths or uniqueness
34. Customers that are worth more to you than the retailer’s competitors
a. Customers that warrant extra effort and investment
b. Customers who are worth more to a competitor will eventually defect
The retailer’s desired mix of new versus loyal customers depends on that retailer’s stage in its life
cycle, goals, and resources, and its competitors’ actions.
A mature retailer is more apt to rely on core customers and supplement its revenues with new
shoppers. A new retailer faces the dual tasks of attracting shoppers and building a loyal following; it
cannot do the latter without the former. If goals are growth-oriented, the customer base must be
expanded by adding stores, increasing advertising, and so on; the challenge is to do this in a way that
does not deflect attention from core customers. Although it is more costly to attract new customers
than to serve existing ones, core customers are not cost-free. If competitors try to take away a
retailer’s existing customers with price cuts and special promotions, a retailer may feel that it must
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pursue competitors’ customers in the same way. Again, it must be careful not to alienate core
customers.

Customer Service
Customer service refers to the identifiable, but sometimes intangible, activities undertaken by a
retailer in conjunction with the goods and services it sells. Customer service affects the total retail
experience. Consistent with a value chain philosophy, retailers must apply two elements of customer
service: expected customer service is the service level that customers want to receive from any
retailer, such as basic employee courtesy; augmented customer service includes the activities that
enhance the shopping experience and give retailers a competitive advantage.
The attributes of personnel who interact with customers (such as politeness and knowledge), as well
as the number and variety of customer services offered, have a strong effect on the relationship
created.
Planning the best customer service strategy can be complex and challenging especially during
economically difficult times which is causing retailers to cut costs in many areas of their businesses;
albeit customers still expect the same level of service. Customer service satisfaction has always
been a key for positive financial results. Businesses must not make customer service investments
only to keep pace with growth, they should view their spending as a strategic benefit to bring greater
customer satisfaction and retention.
Some retailers realise that customer service is better when they utilise employee empowerment,
whereby workers have the discretion to do what they believe is necessary, within reason, to satisfy
the customer, even if this means bending some rules.

Audit of Employee performance by Expert Appraisal:
Expert and Industry Appraisal of 3 Suisses International Group:
35.
36.
37.
38.
39.
40.
41.

as an Excel file: Part_M.3

Employee turnover rates
High performing employees
Employees paid commission
Employee orientation training
Employee on-going training
Discretion for employees to make on-the-spot decisions
Employees perceive themselves as consultants and problem solvers

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Developing a customer service strategy
Fundamental issues for the retailer.
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.3

For the retailer, what customer services are expected and what customer services are augmented:
42.
43.
44.
45.
46.

The level of customer service which complements the retailer’s image
Choices of customer services
Payment for customer services
Measurement of customer benefits versus costs
Termination of customer services

Planning individual customer services
Expert and Industry Appraisal of 3 Suisses International Group:
47.

as an Excel file: Part_M.3

Having outlined a broad customer service plan, the retailer then identifies individual
customer services.
a. Alterations
b. Baby strollers or Baby Changing facilities
c. Baby-sitting or Children’s Areas
d. Beauty salon
e. Bridal registry
f. Complaints and returns handling
g. Credit facilities
h. Designers
i. Dressing rooms
j. Extended store hours
k. Fitting rooms
l. Free parking
m. Gift certificates
n. Gift wrapping
o. Information services
p. Installation / Technical services
q. Layaway
r. Mail and phone orders
s. Open credit account
t. Option credit account
u. Packaging (gift wrapping)
v. Parking
w. Personal shoppers
x. Phones
y. Rest rooms
z. Restaurant
aa. Retailer-sponsored credit cards
bb. Shopping bags
cc. Sitting areas
dd. Special sales for regular customers
ee. Storage
ff. Ticket outlets
gg. Trade-ins
hh. Trial purchases
ii. Water fountains

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Customer Satisfaction
Customer satisfaction occurs when the value and customer service provided through a retailing
experience meet or exceed consumer expectations. Only “very satisfied” customers are likely to
remain loyal in the long run.
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.3

48.
49.
50.
51.
52.
53.

Retailer customer satisfaction
Customer satisfaction deficits
Customer Satisfaction Index rating
Perceived quality
Perceived value
Satisfaction score

54.
55.
56.
57.
58.
59.
60.

Consumers not complaining when dissatisfied
Perception that complaining produces few or no positive results
Complaining difficult
Unable to find the staff to whom to complain
Access to complaints process restricted
Complaints procedure too bureaucratic
Complaint forms to complex

61.
62.
63.
64.
65.
66.

Customer feedback
On-going customer satisfaction surveys
Customers rating customer services
Customer services exceed expectations
Customer services appreciated
Customer services disliked

Loyalty Programs
Consumer loyalty programs reward the retailer’s best customers, those with whom it wants longlasting relationships.
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.3

67.
68.
69.
70.
71.

Percentage of retailer’s customers participating
Structure of loyalty program
Types of Incentive
Cash discount on purchases
Notices of upcoming promotions

72.
73.
74.
75.
76.
77.
78.

Special vouchers
Coupons for new products
Referral coupons on goods and services from other vendors
Gifts with purchases
Special Events
Preferred parking
Personal shopping assistance

79. Privacy issues
80. Consumer fatigue with program
81. Defection rates

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Channel Relationships
Within a value chain, the members of a distribution channel (manufacturers, wholesalers, and
retailers) jointly represent a Value Delivery System, which comprises all the parties that develop,
produce, deliver, and sell and service particular goods and services.
The ramifications for retailers include:
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.3

82.

Each channel member is dependent on the others. When consumers shop with a certain
retailer, they often do so because of both the retailer and the products it carries.

83.

All value delivery system activities must be enumerated and responsibility assigned for
them.

84.

Small retailers may have to use suppliers outside the normal distribution channel to get the
products they want and gain adequate supplier support. Although large retailers may be
able to buy directly from manufacturers, smaller retailers may have to buy through
wholesalers that handle small accounts.

85.

A value delivery system is as good as its weakest link. No matter how well a retailer
performs its activities, it will still have unhappy shoppers if suppliers deliver late or do not
honour warranties.

86.

The nature of a given value delivery system must be related to target market expectations.

87.

Channel member costs and functions are influenced by each party’s role. Long-term
cooperation and two-way information flows foster efficiency.

88.

Value delivery systems are complex due to the vast product assortment of superstores, the
many forms of retailing, and the use of multiple distribution channels by some
manufacturers.

89.

Non-store retailing (such as mail-order, phone, and online transactions) requires a different
delivery system than does store retailing.

90.

Due to conflicting goals about profit margins, shelf space, and so on, some channel
members are adversarial—to the detriment of the value delivery system and channel
relationships.

When members of a Value Delivery System forge strong positive channel relationships, they better
serve each other and the final consumer.

Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.3

91.

Traditionally, the relationship between retailers and suppliers was, at best, arm’s length.

92.

The manufacturers’ goal was to move the greatest volume of goods at the highest price.

93.

The retailers’ goal was to negotiate the lowest price for the goods.

94.

Competitive pressures led to a new paradigm. It focused on a simple idea: make sure the
right product at the right price is on the shelf when the customer enters the store, while
maintaining the lowest possible inventory at all points in the pipeline from suppliers to
retailer. This requires cooperation between retailers and upstream suppliers.

95.

Category management whereby channel members collaborate to manage products by
category rather than by individual item. Category management is based on these
principles:
a. Retailers listen more to customers and stock what they want.
b. Profitability is improved because inventory matches demand more closely.
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c.

By being better focused, each department is more desirable for shoppers.

d. Retail buyers are given more responsibilities and accountability for category
results.
e. Retailers and suppliers must share data and be more computerised.
f.

Retailers and suppliers must plan together.

Relationship Building: Goods -v- Service Retailers
The consumer interest in services makes it crucial to understand the differences in relationship
building between retailers that market services and those that market goods. This applies to storebased and non-store-based retailers, those offering only goods or services, and those offering goods
and services.
Goods Retailing is defined as the sale of tangible (physical) products, whereas Service Retailing
involves transactions in which consumers do not purchase or acquire ownership of tangible products.
Some retailers engage in either goods retailing (such as hardware stores) or service retailing (such as
travel agencies); others offer a combination of the two (such as stores that rent as well as sell
movies). The latter format is the fastest-growing. For example, many department stores have beauty
salons, and many hotels have gift shops, and so on.
Service Retailing encompasses such diverse businesses as personal services, hotels and motels,
auto repair and rental, and recreational services. In addition, although several services have not been
commonly considered a part of retailing (such as medical, dental, legal, and educational services),
they should be when they entail final consumer sales.
There are three kinds of service retailing:

Rented-goods services, whereby consumers lease and use goods for specified periods of
time. Tangible goods are leased for a fixed time, but ownership is not obtained and the good
must be returned when the rental period is up. Examples are car rentals, carpet cleaner
rentals at a supermarket, and video rentals at a convenience store.

Owned-goods services, whereby goods owned by consumers are repaired, improved, or
maintained. In this grouping, the retailer providing the service never owns the good involved.
Illustrations include watch repair, lawn care, and an annual air-conditioner tune-up.

Non-goods services, whereby intangible personal services are offered to consumers, who
then experience the services rather than possess them. The seller offers personal expertise
for a specified time in return for a fee; tangible goods are not involved. Some examples are
stockbrokers, travel agents, real-estate brokers, and personal trainers.

The terms customer service and service retailing are not interchangeable. Customer service refers to
the activities undertaken in conjunction with the retailer’s main business; they are part of the total
retail experience. Service Retailing refers to situations in which services are sold to consumers.
There are four unique aspects of service retailing that influence relationship building and customer
retention.
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.3

96.

The intangibility of many services makes a consumer’s choice of competitive offerings
tougher than with goods.

97.

The service provider and his or her services are sometimes inseparable (thereby localising
marketing efforts).

98.

The perishability of many services prevents storage and increases risks.

99.

The aspect of human nature involved in many services makes them more variable.
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The intangible (and possibly abstract) nature of services makes it harder for a retailer to develop a
clear consumer-oriented strategy, particularly because many retailers (such as opticians, repair
people, and landscapers) start service businesses on the basis of their product expertise. The
inseparability of the service provider and his or her services means that the owner–operator is often
indispensable and good customer relations are pivotal.

100. Perishability presents a risk that in many cases cannot be overcome. Thus, revenues from
an unrented hotel room are forever lost.
101. Variability means that service quality may differ for each shopping experience, store, or
service provider.

Service retailing is much more dependent on personal interactions and word-of-mouth communication
than is goods retailing:

Relationship marketing benefits the customer, as well as the firm. For services that are
personally important, variable in quality, and/or complex, many customers will desire to be
“relationship customers.” Medical, banking, insurance, and hairstyling services illustrate some
or all of the significant factors, importance, variability, and complexity, which would cause
many customers to desire continuity with the same provider, a proactive service attitude, and
customised service delivery.

The intangible nature of services makes them difficult for customers to evaluate prior to
purchase.

The heterogeneity of labour-intensive services encourages customer loyalty when excellent
service is experienced. Not only does the auto repair firm want to find customers who will be
loyal, but customers want to find an auto repair firm that evokes their loyalty.

Knowledge of the customer combined with social rapport built over a series of service
encounters facilitates the tailoring of service to customer specifications. Relationship
marketing does not apply to every service situation. However, for those services distinguished
by the characteristics discussed here, it is potent.

Ethics & Relationships in Retailing
Ethical challenges fall into three interconnected categories:


Ethics relates to the retailer’s moral principles and values.
Social responsibility involves acts benefiting society.
Consumerism entails protecting consumer rights.

“Good” behaviour depends not only on the retailer but also on the expectations of the community in
which it does business.

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Ethics
In dealing with their constituencies (customers, the general public, employees, suppliers, competitors,
and others), retailers have a moral obligation to act ethically. Furthermore, due to the attention paid to
firms’ behaviour and the high expectations people have today, a failure to be ethical may lead to
adverse publicity, lawsuits, the loss of customers, and a lack of self-respect among employees.
When a retailer has a sense of ethics, it acts in a trustworthy, fair, honest, and respectful manner with
each of its constituencies. Executives must articulate to employees and channel partners which kinds
of behaviour are acceptable and which are not. The best way to avoid unethical acts is for firms to
have written ethics codes, to distribute them to employees and channel partners, to monitor
behaviour, and to punish poor behaviour, and for managers to be highly ethical in their own conduct.
Often society may deem certain behaviour to be unethical even if laws do not forbid it. Most observers
would agree that such practices as these are unethical (and sometimes illegal, too):
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.3

102. Raising prices on scarce products after natural events.
103. Not having adequate stock when a sale is advertised.
104. Charging high prices in low-income areas because consumers there do not have the
transportation mobility to shop out of their neighbourhoods.
105. Selling alcohol and tobacco products to children.
106. Having a salesperson pose as a market researcher when engaged in telemarketing.
107. Defaming competitors.
108. Selling refurbished merchandise as new.
109. Pressuring employees to push high-profit items to shoppers, even if these items are not the
best products for them.
110. Selling information from a customer database.
111. Offers not clear, honest, and complete.
112. Disparagement of anyone on grounds of race, colour, religion, national origin, gender,
marital status, or age.
113.
114.
115.
116.

Contacts which do not disclose the sponsor and the purpose of the contact.
Competition prizes not advertised in a clear, honest, and complete way.
Merchandise shipped without receiving customer permission.
Telemarketers knowingly call a consumer with an unlisted or unpublished phone number.

Social Responsibility
A retailer exhibiting social responsibility acts in the best interests of society, as well as itself. The
challenge is to balance corporate citizenship with a fair level of profits for shareholders, management,
and employees. Some forms of social responsibility are virtually cost-free, such as having employees
participate in community events or disposing of waste products in a more careful way. Some are more
costly, such as making donations to charitable groups or giving away goods and services to a school.
Still others mean going above and beyond the letter of the law, such as having free loaner
wheelchairs for persons with disabilities in addition to having legally mandated wheelchair
accessibility to retail premises.
Retailers know that socially responsible acts do not go unnoticed. Though the acts may not stimulate
extra profits for firms with weak strategies, they can be a customer inducement for those otherwise
viewed as “me too” entities. It may also be possible to profit from good deeds; a retailer donates
excess inventory to a charity for the poor, it can take a tax deduction equal to the cost of the goods.

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Consumerism
Consumerism involves the activities of government, business, and other organisations to protect
people from practices infringing upon their rights as consumers. These actions recognise that
consumers have basic rights that should be safeguarded.
Retailers and their channel partners need to avoid business practices that violate consumer rights and
to do all they can to understand and protect them, for reasons that include the following:
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.3

Retail practices are covered by legislation.
117. Consumers are more knowledgeable, price-conscious, and selective than in the past.
118. Large retailers may be viewed as indifferent by consumers. They may not provide enough
personal attention for shoppers or may have inadequate control over employees.
119. The use of self-service is increasing, and it can cause frustration for some shoppers.
120. Innovative technology is unsettling to many consumers, who must learn new shopping
behaviour.
121. Retailers are in direct customer contact, so they are often blamed for and asked to resolve
problems caused by manufacturers (such as defective products).

To avoid customer relations problems, retailers must devised programs to protect consumer rights
without waiting for government or consumer pressure to do so.
Retailers should enacted programs to test merchandise for specific attributes:
122.
123.
124.
125.
126.

Value
Quality
Misrepresentation of contents
Safety
Durability

Other consumerism activities should be undertaken by the retailer:
127.
128.
129.

Setting clear procedures for handling customer complaints
Sponsoring consumer education programs
Training personnel to interact properly with customer

Summary:
130.
Understand what “value” really means and highlight its pivotal role in building and
sustaining relationships.
a. Undertake activities and processes to provide a given level of value for the consumer.
b. Consumers perceive the value offered, based on the perceived benefits received
versus the prices paid.
c. Perceived value varies by type of shopper.
d. Value chain represents the total bundle of benefits offered by a channel of
distribution.
e. Value chain comprises store location, ambience, customer service, the
products/brands carried, product quality, the in-stock position, shipping, prices, the
retailer’s image, and so forth.
f. Elements of a retail value chain visible to shoppers.
g. Expected retail strategy which represents the minimum value chain elements a given
customer segment would expect from the retailer.
h. Augmented retail strategy which includes the extra elements that differentiate the
retailer.
i. Potential retail strategy includes value chain elements not yet perfected in the
retailer’s industry category.

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131.
Understand both customer relationships and channel relationships which may be
nurtured.
a. Enduring relationships with other channel members, as well as with customers.
b. Realisation that loyal customers are the backbone of their business.
c. Applying relationship retailing with consumers which identify factors which should be
considered:
i.
the customer base
ii.
customer service
iii.
customer satisfaction
iv.
loyalty programs
v.
defection rates.
Which shoppers are more worth nurturing because they are a retailer’s core customers.
The attributes of personnel who interact with customers
Number and variety of customer services offered.
Improved customer service by empowering personnel
Implementation of specific tactics as to credit, delivery, and so forth.
Customer satisfaction because the value and customer service provided in a retail
experience meet or exceed expectations.
j. Loyalty programs which reward the best customers with whom a retailer wants to develop
long-lasting relationships.
k. Sound value-driven retail strategy.
l. Study of defections, how many customers are lost, and why they no longer patronise the
store.
m. Members of a distribution channel jointly representing the value delivery system.
n. Distribution activities which are enumerated and responsibility assigned.
o. Category management.
d.
e.
f.
g.
h.
i.

132.
Differences in relationship building between goods and service retailers.
a. Focus on selling tangible products.
b. Service retailing.
i.
rented-goods services
ii.
owned-goods services
iii.
non-goods services
133.
a.
b.
c.
d.
e.

Impact of technology on relationships in retailing.
Improved information flow between the retailer and suppliers
Improved information flow between the retailer and customers
Faster, smoother transactions
Electronic banking services
Nature of supplier/ retailer/customer interactions

Interplay between the retailer’s ethical performance and relationships in retailing.
Ethics of the retailer’s moral principles and values
Social responsibility
Consumerism
Act in a trustworthy, fair, honest, and respectful way.
Avoids unethical behaviour through written ethics codes, communicate them to
employees, monitor and punish poor behaviour, and has ethical executives
f. Recycling and conservation programs
g. Consumer rights to safety, to be informed, to choose, and to be heard.

134.
a.
b.
c.
d.
e.

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Part M.4 : Planning Aspects of Service Retailing
This data is available on a Corporate basis for 3 Suisses International Group

Consumers in developed countries spend most of their after-tax income on such services as travel,
recreation, personal care, education, medical care, and housing. In developed countries between 7080% of the labour force works in services.
During the past 30 years, the prices of services have risen more than the prices of many goods
because manufacturing has migrated to low cost countries and of course services incur the local
labour costs. In addition, technological advances, automation has substantially reduced
manufacturing labour costs, but many services remain labour-intensive because of their personal
nature.
Many traditional goods retailers are now turning their attention to the provision of services and the
historic dividing lines between goods and services retailers is now very blurred.

Successful service retailing
The inter-personal abilities required in service retailing are usually quite distinct from those in goods
retailing:
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.4

1. Specific retailer skills.
2. Difficulties in changing and transferring their skills to another area.
3. Service operators may be required to have licences or certification to run their businesses
depending on national regulations
4. Those employed in service businesses must enjoy their jobs and have the aptitude for them.
5. Service retailers can operate on lower overall investments and lower annual revenues than
can goods retailers.
6. Costs can be held down in service businesses whereas a goods retailer needs a good
product assortment and inventory on hand, which may be costly and require storage facilities.
7. Considerations of time commitment of a service retailer differ by type of business.
8. More service retailers fall into the high time-investment category.

Performance of service retailers
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_M.4

Service tangibility can be increased:
9.
10.
11.
12.

By stressing service provider reliability
Promoting a continuous image
Describing specific results
Offering warranties

Demand and supply can be better matched:
13.
14.
15.
16.
17.

By offering similar services to market segments with different demand patterns
New services with demand patterns that are countercyclical from existing services
New services that complement existing ones
Special deals during nonpeak times
New services not subject to existing capacity constraints
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Standardising services:
18. Reduces their variability
19. Makes it easier to set prices
20. Improves efficiency
Services can be standardised:
21.
22.
23.
24.

By clearly defining each of the tasks involved
Determining the minimum and maximum times needed to complete each task
Selecting the best order in which to do tasks
Noting the optimum time and quality of the entire service

Service retailers may be able to make services more efficient:
25. By automating them and substituting machinery for labour.
26. Optimum location of a service centres
27. Use of mobile customer service facilities
Pricing decisions can be improved:
28.
29.
30.
31.
32.
33.
34.
35.
36.

Communicate value through their pricing
Satisfaction-based pricing recognises and reduces customer perceptions of uncertainty that
service intangibility magnifies
Service guarantees
Benefit-driven pricing
Flat-rate pricing.
Relationship pricing which encourages long-term relationships with valuable customers
through long-term contracts and price bundling
Cost leadership techniques
Negotiated pricing where the retailer works out a one-time pricing arrangements with
individual customers because of a unique or complex service
Contingency pricing where the retailer does not get paid until after the service is performed
and payment is contingent on the service’s being satisfactory.

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Part N.1 : Supplemental Customer Survey Data
This data is available on a Corporate basis and on a Location/Site basis for 3 Suisses
International Group

This section provides a battery of supplemental Customer Surveys.

Survey Respondent Demographics
Survey data is provided for the total consumer demographic. However the survey data can be
extracted for particular demographics. The Filtering of the demographic is done for individual
demographic characteristics or for one or more demographic characteristics.
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.1

1. Gender
2. Age
a.
b.
c.
d.
e.
f.
g.

Under 13
13-17
18-25
26-34
35-54
55-64
65 or over

3. Marital status
a. Single, never married
b. Married without children
c. Married with children
d. Divorced
e. Separated
f. Widowed
g. Living with partner
4. Highest level of education you have completed
a. Less than High School
b. High School
c. Some College
d. 2-year College Degree
e. 4-year College Degree
f. Master’s Degree
g. Doctoral Degree
h. Professional Degree
5. Are there any children in at home, if so, what are their ages
a. Under 10
b. 10 to 15
c. 16 to 19
d. No, no children at home

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6. Indicate the number of children in your household under the age of 18.
a. 0
b. 1
c. 2
d. 3
e. 4 or more
f. How many Boys
g. How many Girls
7. Including yourself, how many persons are in your household?
a. 1
b. 2
c. 3
d. 4
e. 5 or more
8. What type of housing to you live in
a. Apartment
b. Condominium
c. Mobile/Trailer
d. Single unit home
e. Other
9. Do you
a. Own
b. Rent your home
c. Other
10. Which of the following best describes the area you live in?
a. Inner city / downtown
b. Urban
c. Suburban
d. Rural
11. What is your total yearly household income, before taxes
a. Under $30,000
b. $30-$39,999
c. $40-$49,999
d. $50-$59,999
e. $60-$69,999
f. $70-$79,999
g. $80-$89,999
h. $90-$99,999
i. $100-$150,000
j. Over $150,00
12. Are you currently registered to vote
a. Rather not say
b. No
c. Yes
d. Not applicable
13. What is your current work status?
a. Work outside home full time
b. Work outside home part time
c. Do not work outside home
14. In what type of organisation do you work?
15. Which of the following best describes your job role?
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a.
b.
c.
d.
e.
f.

Upper Management
Middle Management
Junior Management
Administrative Staff
Support or Functional Staff
Student

16. The organisation you work for comes under which of the following categories?
a. Public sector (e.g. government)
b. Private sector (e.g. most businesses and individuals)
c. Not-for-profit sector
d. Do not know
e. Other
17. Can you estimate your organisation's total budget for this year?
a. less than $1 million (US)
b. $1 million to $10 million (US)
c. $10 million to $100 million (US)
d. $100 million to $500 million (US)
e. $500 million to $1 billion (US)
f. over $1 billion (US)
g. Do not know or Rather not say
18. During an average week, most of your professional correspondence (postal mail or e-mail) is
with which of the following:
a. Public sector (e.g. government)
b. Private sector (e.g. most businesses and individuals)
c. Not-for-profit sector
d. Do not know
e. Other
19. Indicate which of the following are sources of revenue for your organisation:
a. Sales to individuals or private organisations (but not contracts)
b. Sale to government organisations (but not contracts)
c. Contracts to do work for private organisations
d. Contracts to do work for government organisations
e. Contracts to do work for other organisations
f. Government appropriations
g. User charges and fees
h. Donations
i. Don't know or Other
20. What is the present occupation of the head of household?
a. Professional/technical
b. Manager/official/proprietor
c. Clerical
d. Sales
e. Crafts/trades
f. Operator
g. Manual worker
h. Service worker
i. Retired
j. Homemaker
k. Student
l. Unemployed or Other

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Brand Survey
Derived from the Customer Surveys:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.2

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.

Attitudes Towards Discount / Store Own-Brand Products
Brand Availability -v- Price Question
Perceptions of Currently Imported Brands
Perceptions of Currently Store Brands
Brand Price Sensitivity
Brand Product Awareness
Product Awareness of Store Brands
Brand Purchasing Criteria: Current
Purchasing Criteria: Current of Store Brands
Brand Purchasing Criteria: Future Trends
Purchasing Criteria: Future Trends of Store Brands
Quality -v- Price Question
Reaction to Advertising & Sales Promotion of Brands
Reaction to Advertising & Sales Promotion of Store Brands
Reaction to P.O.S. & Merchandising of Brands
Satisfaction with Existing Branded Outlets
Satisfaction with Existing Foreign Brand Products
Satisfaction with Existing Brands Products
Satisfaction with Existing Brands Retailers
Satisfaction with Foreign Brand Product Design
Satisfaction with Foreign Brand Product Packaging
Satisfaction with Foreign Brand Product Packaging Design
Satisfaction with Foreign Brand Product Quality
Satisfaction with Product Brands Availability
Satisfaction with Product Brands Design
Satisfaction with Product Brands Packaging
Satisfaction with Product Brands Packaging Design
Satisfaction with Product Brands Quality
Satisfaction with Retailers Brands Stock Levels
Willingness to Purchase Foreign Brands
Willingness to Purchase Store Brands

32.
33.
34.
35.

Brands Advertising Posture: Branch/Outlet Level
Brands Advertising Posture: Company Level
Brands Promotional Activity: Branch/Outlet Level
Brands Promotional Activity: Company Level

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Retail Store Brand Personality
Derived from the Customer Surveys:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.3

Retail store personality variables:
1. Select the answer that best indicates the way you would describe this Retailer’s Brand.
a. Good selection
b. High prices
c. High quality
d. High fashion
e. Good service
f. Easy to shop in
g. Friendly
h. Good sales and promotions
i. Sophisticated
j. Traditional
k. Different
l. Take chances
m. Confident
n. Creative
o. Sociable
p. Stands out in the crowd
q. Simplified lifestyle

Comparative Retail Store Evaluation
Battery of questions focusing on merchandise quality, value, layout, convenience. Comparisons
across 15 competitive retailers within the catchment area.
Derived from the Customer Surveys:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.4

Considering the 15 stores, which store:
1. consistently provides the best values for your money?
2. is most likely to have what you want in stock?
3. has the best advertised sales and specials?
4. has the best quality merchandise?
5. maintains the best everyday price for most merchandise?
6. has the lowest prices overall?
7. provides the least value for your money?
8. has the highest prices overall?
9. has the poorest quality merchandise?
10. has the most convenient store layout for shopping?
11. has the widest selection of national brand merchandise?
12. offers the lowest everyday prices on household essentials such as cleaning supplies, paper
goods, and health and beauty aids?
13. has the best cafeteria?

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Retail Store Evaluation
Derived from the Customer Surveys:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.5

Retail store customer service and merchandise evaluation survey:
1. This store has modern-looking equipment and fixtures.
2. The physical facilities at this store are visually appealing.
3. Materials associated with this store's service (such as shopping bags, catalogues, or
statements) are visually appealing.
4. This store has clean, attractive, and convenient public areas (restrooms, fitting rooms).
5. The store layout at this store makes it easy for customers to find what they need.
6. The store layout at this store makes it easy for customers to move around the store.
7. When this store promises to do something by a certain time, it will do so.
8. This store provides its services at the time it promises to do so.
9. This store performs the service right the first time.
10. This store has merchandise available when the customers want it.
11. This store insists on error-free sales transactions and records.
12. Employees in this store have the knowledge to answer customers' questions.
13. The behaviour of employees in this store instils confidence in customers.
14. Customers feel safe in their transactions with this store.
15. Employees in this store give prompt service to customers.
16. Employees in this store tell customers exactly when services will be performed.
17. Employees in this store are never too busy to respond to customer's requests.
18. This store gives customers individual attention.
19. Employees in this store are consistently courteous with customers.
20. Employees of this store treat customers courteously on the telephone.
21. This store willingly handles returns and exchanges.
22. When a customer has a problem, this store shows a sincere interest in solving it.
23. Employees of this store are able to handle customer complaints directly and immediately.
24. This store offers high quality merchandise.
25. This store provides plenty of convenient parking for customers.
26. This store has operating hours convenient to all their customers.
27. This store accepts most major credit cards.
28. This store offers its own credit card.

Customer Surveys
Customer Surveys of 3 Suisses International Group:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

as an Excel file: Part_N.1.6

Stores are conveniently located.
Store hours are convenient for my shopping needs.
Store atmosphere and decor are appealing.
A good selection of products was present.
Store has the best prices in the area.
Merchandise sold is of the highest quality.
The merchandise sold is a good value for the money.
Merchandise displays are attractive.
Advertised merchandise was in stock.
Overall, I am very satisfied with the store.
I am very satisfied with the price I paid for what I bought.
I am very satisfied with the merchandise I bought.

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13. In thinking about your most recent experience with the retailer, was the quality of customer
service you received:
a. Very Poor
b. Somewhat Unsatisfactory
c. About Average
d. Very Satisfactory
e. Superior
14. Characteristics of the sales person:
a. Poor
b. Fair
c. Good
d. Very Good
e. Excellent
f. Knowledge of the product
g. Courteousness
h. Willingness to help
i. Efficiency/quickness
j. Ability to complete transaction
15. How satisfied are you with the product(s) regarding the following items?
a. Overall quality
b. Value
c. Purchase experience
d. First use experience
e. Usage experience
f. After purchase service (warranty, repair, customer service etc.)
16. How often do you use the product(s)?
17. Overall, how satisfied are you with the product(s)?
a. Very Unsatisfied
b. Unsatisfied
c. Somewhat Satisfied
d. Very Satisfied
e. Extremely Satisfied
18. Compared to other product(s) in this category that are available, would you say that the
product(s) is/are:
a. Much better
b. Somewhat better
c. About the same
d. Somewhat worse
e. Much worse
19. Will you use/purchase the product(s) again?
a. Definitely will
b. Probably will
c. Might or might not
d. Probably will not
e. Definitely will not

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20. How likely are you to recommend the product(s) to others?
a. Definitely will recommend
b. Probably will recommend
c. Not sure
d. Probably will not recommend
e. Definitely will not recommend
21. Based on your experience with the product(s), how likely are you to buy again?
a. Very Unlikely
b. Unlikely
c. Somewhat Unlikely
d. Very Likely
e. Extremely Likely
22. If you contacted the company‘s customer service, were all problems resolved to your
complete satisfaction?
23. In evaluating your most recent customer service experience, was the quality of service you
received:
a. Very poor
b. Somewhat unsatisfactory
c. About average
d. Very satisfactory
e. Superior
Particular aspects of the service experience:
24. The process of getting your problem resolved was:
a. Very poor
b. Somewhat unsatisfactory
c. About average
d. Very satisfactory
e. Superior
Particular aspects of the problem solving process:
25. The customer service representative was very courteous:
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree
26. Which of the following qualities of the service representative stood out (as being superior)?
a. Patient
b. Enthusiastic
c. Listened carefully
d. Friendly
e. Responsive
f. Other
27. What qualities of the customer service representative irked you?
a. Not patient
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b.
c.
d.
e.
f.
g.

Not enthusiastic
Didn't listen carefully
Unfriendly
Unresponsive
Other
No qualities irked me

28. The customer service representative handled my call quickly:
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree
29. What would best describe your experience, when you called?
a. Kept me waiting on hold
b. Had to explain several times
c. Didn't know how to handle problem
d. Had to ask others
e. Spoke slowly
f. Other
g. No improvement needed
30. The customer service representative was very knowledgeable.
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree
31. The Customer Service:
a. Gave me the wrong information
b. Didn't understand the question
c. Gave unclear answers
d. Couldn't solve problem
e. Disorganised
f. Other
g. No improvement needed
32. The waiting time for having my question addressed was satisfactory.
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree
33. My phone call was quickly transferred to the person who could best assist me:
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree

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34. Over the next 12 months, how likely are you to replace your product with another (product or
brand)?
a. Certain
b. High chance
c. Equal chance
d. Low chance
e. Never
35. In your most recent customer service experience, how did you contact the representative?
a. In Person
b. By Telephone
c. Internet
d. Through a Dealer/Retailer/Broker
e. Other
f. Sufficient information was available on the internet to solve my problem.
36. About how long did you have to wait before speaking to a representative?
a. I was taken care of immediately
b. Within 3 minutes
c. 3-5 minutes
d. 5-10 minutes
e. More than 10 minutes
37. Did the service representative:
a. Quickly identify the problem
b. Appear knowledgeable and competent
c. Help you understand the cause and the solution to the problem
d. Handle issues with courtesy and professionalism
38. About how long did it take to get this problem resolved?
a. Immediate Resolution
b. Less than a day
c. Between 2 and 3 days
d. Between 3 and 5 days
e. More than a week
f. The problem is still not resolved
39. How many times did you have to contact customer service before the problem was corrected?
a. Once
b. Twice
c. Three Times
d. More than Three times
40. Overall, how satisfied are you with the customer service experience?
41. If you were less than totally satisfied, what could have been done to serve you better?

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Customer Satisfaction
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.7

Net Promoter Score (NPS) TYPE survey. The *Net Promoter Score is a common test of
customer satisfaction.
The score is calculated by sorting respondents into Promoters (High), Neutrals (Middle) and
Detractors (Low), then subtracting the percentage of respondents that are Detractors from the
percentage that are Promoters. This survey calculates a Net Promoter Score type for two
instances: the purchase of a specific Brand Model and overall feelings of the Brand. In
addition, it collects other feedback and demographic information for future segmentation.
*The Net Promoter Score is a registered trademark of Bain & Company and Satmetrix.
1. Considering only your most recent purchase experience, how likely would you be to
recommend the purchase of the product(s) to a friend or colleague? (0 is not at all likely, 10 is
extremely likely)
2.
Considering your complete experience with the company, how likely would you be to
recommend the company to a friend or colleague? (0 is not at all likely, 10 is extremely
likely)
3. What can the company do in the future to earn a score of 9 or 10?
4. What did the company do really well?
5. What can the company do to be even better?

Customer Voices
Customer Surveys of 3 Suisses International Group:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.

as an Excel file: Part_N.1.8

There would be something missing in my life if the store / brand did not exist.
I have the feeling that I really understand the store / brand.
I have feelings for the store / brand that I do not have for other companies/brands.
The store / brand has always been good for me.
The store / brand and I have a lot in common.
The store / brand reminds me of things I have done and places where I have been.
The store / brand can always count on me.
I trust the store / brand
I am satisfied with the quality of products of the store.
The quality of the products of the store is important to me.
I am satisfied with the value for money I get from store.
The value for money I get from store is important for me.
I am satisfied with the reliability of the products of the store.
The reliability of products of the store is important to me.
I am satisfied with the product guarantee from the store.
The product guarantees at the store is important to me.
I am satisfied with the expertise of the store service staff.
The expertise of the store service staff is important to me
I am satisfied with the fast response of the store service staff
The fast response of the store service staff is important to me.
The store sales people are friendly.
The friendliness of the store sales people is important to me.
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23.
24.
25.
26.
27.

The expertise of the store sales people is high.
The expertise of the store sales people is important to me.
The store understands me and my needs.
Are you likely to provide enthusiastic referrals for store?
Do you have any comments suggestions for store?

Product Satisfaction and Customer Retention
This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.9

1. How often do you typically use the product?
a. Once a year
b. Daily
c. Weekly
d. Once a month
e. Every 2-3 months
f. 2-3 times a year less often
g. Do not use
2. How did your product(s) perform?
a. Miserably
b. Somewhat Satisfactory
c. Very Satisfactory
d. Delightfully
3. How important was performance on these attributes?
a. Overall quality
b. Value
c. Purchase experience
d. First use experience
e. Usage experience
f. After purchase service (warranty, repair, customer service etc.)
4. Overall, how satisfied were you with the new product(s)?
a. Not at all satisfied
b. Somewhat Satisfied
c. Satisfied
d. Very Satisfied
e. Delighted
5. Have you ever contacted customer service?
6. If you contacted customer service, have all problems been resolved to your complete
satisfaction?
a. Yes, by the company or its representatives.
b. Yes, by me or someone outside the company
c. No, the problem was not resolved
7. Based on your awareness of the product(s) / service(s), is it better, the same, or worse than
other brands?
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a.
b.
c.
d.
e.

Much Better
Better
About the same
Worse
Much Worse

8. How could the product(s) / service(s) do better?
9. Based on your experience with the product(s), how likely are you to buy the product(s) again?
a. Definitely will
b. Probably will
c. Might or might not
d. Probably will not
e. Definitely will not
10. Based on your experience with the product(s), would you recommend this product to a friend?
a. Definitely will
b. Probably will
c. Might or might not
d. Probably will not
e. Definitely will not

Customer Satisfaction: Product
This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.10

1. Purchase Satisfaction: How much do you agree or disagree with the following statements
about the product(s)?
i. Strongly Disagree
ii. Disagree
iii. Somewhat Disagree
iv. Neither Agree nor Disagree
v. Somewhat Agree
vi. Agree
vii. Agree Strongly
a. This is one of the best products I could have bought.
b. This product is exactly what I need.
c. This product hasn’t worked out as well as I thought it would.
d. I am satisfied with my decision to buy this product.
e. Sometimes I have mixed feelings about keeping the product(s).
f. My choice to buy this product was a wise one.
g. If I could do it over again, I’d buy a different make/brand.
h. I have truly enjoyed this product.
i. I feel bad about my decision to buy this product.
j. I am not happy that I bought this product.
k. Owning this product has been a good experience.
l. I’m sure it was the right thing to buy this product.

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2. How much do you agree or disagree with the following statements about the product(s)?
i.
Strongly Disagree
ii.
Disagree
iii.
Somewhat Disagree
iv.
Neither Agree nor Disagree
v.
Somewhat Agree
vi.
Agree
vii.
Agree Strongly
a. I am pretty satisfied with the product(s) I chose.
b. I am pretty certain that I made the best decision about which product(s) to select.
c. I felt confused while shopping for the product(s).
d. I am pretty sure that one of the other brands of the product(s) that I did not
choose would have been equal to or better than the brand I chose to satisfy my
desires and expectations.
e. It is likely that the brand of the product(s) I chose is better than the other brands
of the product(s) I am currently familiar with.
f. If I could do it over again, I’d buy a different make/brand.

Product Ownership
This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.11

1. Did you receive this product as a gift?
2. How did you first discover this product was available for purchase?
a. Advertising - TV, newspaper, magazine, radio
b. Ad in another product - brochure, preview
c. Friends/Family/Someone told me about it
d. Read a magazine article/review
e. Saw it in the store/Browsing in store
f. Through the mail/mail catalogue
g. Other
3. What is the one reason you purchased this product?
a. Someone asked for it
b. Makes a great gift
c. Own other (products) and wanted more
d. It is a classic
e. Good for the whole family
f. Saw it in the store
g. I like the product
h. Price/Good value
i. Other
4.
5.
6.
7.
8.
9.

What was the name of the store where this product was bought?
What price did you pay for this product?
How many Company products do you own?
How many similar products of any brand do you own?
How many Company products have you bought in the past 12 months?
How many similar products of any brand have you bought in the past 12 months?

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New Product Concept Evaluation and Pricing Study
This Survey is on specific New Product Items. A list of the available new product items will be found in
the Core Database:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.12

This survey is about the Company’s new brand(s) / product(s) / service(s) as described:
1. How would you best describe your familiarity with a brand / product / service like that
described above?
a. I was not aware of such a New product/service
b. Only generally aware
c. Have investigated or researched such products
d. Have demonstrated a product like this
e. Have purchased or regularly use a product like this
2. About how many units of this new product would you buy over the next year at each price
point listed below (FMV Fair Market Value)?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. FMV = Estimated Fair Market Value = Recommended Retail Price
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
3. About what would you expect to pay for the new product(s) / service(s) like the one
described? (Nearest dollar)
4. At what price would this new product begin to look inexpensive or cheap?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
5. At what price would this new product begin to look Fair Value?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
6. At what price would the product begin to look too expensive?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
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g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
7. At what price would the product begin to look so expensive that you would never consider
buying it?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%
8. If you knew that the average price of similar New brand / product / service was [Price], would
you expect to pay more or less to buy the described new brand / product / service?
a. (20-30%) more
b. (5-10%) more
c. No more, no less
d. (5-10%) less
e. (20-30%) less
9. If you are a current user of a similar brand / product / service, how long have you used the
brand / product / service?
a. Under 1 month
b. 1-6 months
c. 6 months to 1 year
d. 1-2 years
e. 3 years or more
f. Do not currently use
10. How often could you find a use for the described new brand / product / service?
a. Once a week or more often
b. 2-3 times a month
c. Once a month
d. Every 2-3 months
e. 2-3 times a year
f. Once a year
g. Would not use
11. Based on the description, how interested would you be in buying the described new brand /
product / service; if priced within your budget?
a. Not at all interested
b. Not very interested
c. Not sure
d. Somewhat interested
e. Very interested
12. What is it that you like most about the described new brand / product / service?
13. What do you like least about the described new brand / product / service?
14. Which of the following best describes your need for this new brand / product / service?
a. I really need this product because nothing else can solve this problem.
b. This is a minor improvement over what I currently use.
c. Looks okay but is about the same as what I'm using now.
d. My current product would serve me better.
e. I am not at all interested in this product.
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Product Concept Test
This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.13

This survey is about the Company’s brand(s) / product(s) / service(s) as described here:
1. How would you best describe your familiarity with a brand / product / service like that
described above?
a. I was not aware of such a product/service
b. Only generally aware
c. Have investigated or researched such products
d. Have demonstrated a product like this
e. Have purchased or regularly use a product like this
2. Having been told / seen a list of features that are part of the product: How important is each
feature to you?
a. Not At All Important
b. Extremely Important
3. Rank the features in order of importance:
4. How favourable is your overall reaction to the Product/Service?
a. Poor
b. Fair
c. Good
d. Very good
e. Excellent
5. What is it that you like most about the product(s)?
6. What do you like least about the product(s)?
7. Based on the product description, how interested would you be in buying this product if it
were within your budget?
a. Not at all interested
b. Not very interested
c. Not sure
d. Somewhat interested
e. Extremely interested
8. About what would you expect to pay for the product(s)?
9. How often do you / would you use product(s) in this category?
a. Once a week or more often
b. 2-3 times a month
c. Once a month
d. Every 2-3 months
e. 2-3 times a year
f. Once a year or less
g. Do not use

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Product Survey
This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.14

1. Have you ever purchased the product(s) from the retailer?
2. Overall, how would you rate the retailer?
a. Excellent
b. Good
c. Average
d. Poor
e. Terrible
3. How satisfied are you with the service from the retailer?
a. Extremely satisfied
b. Very satisfied
c. Neutral
d. Very dissatisfied
e. Extremely dissatisfied
4. Would you recommend the retailer to a friend? If not, why not?
5. For your NEXT product purchase, how likely are you to purchase from the retailer?
a. Very likely
b. Somewhat likely
c. Not sure
d. Somewhat unlikely
e. Very unlikely
6. Which of the following modes did you use for your last purchase of the product(s)?
a. Store
b. Mail order
c. Internet
d. Over the phone
e. Other
7. What are the THREE main reasons you didn't purchase the product(s) from the retailer?
8. If you could change something about the retailer what would it be?
9. Are there any other comments you have for the retailer?
10. How did you first discover this product was available for purchase?
a. Advertising - TV, newspaper, magazine, radio
b. Ad in another product(s) - brochure, preview
c. Friends/Family/Someone told me about it
d. Read a magazine article/review
e. Saw it in the store/Browsing in store
f. Through the mail/mail catalogue
g. Other
11. What is the one reason you purchased this product?
a. Someone asked for it
b. Own other products and wanted more
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c.
d.
e.
f.
g.
h.
12.
13.
14.
15.
16.
17.

It is familiar
Good for the whole family
Saw it in the store
I like the product(s)
It was on sale
Other

Which store did you purchase this product from?
How much did you pay for this product?
How many total products do you own?
How many total products of any brand do you own?
How many total products have you purchased in the past 12 months?
How many total products of any brand have you purchased in the past 12 months?

18. If you do not have all of your service work done at this company, tell us why:
a. Location
b. Quality of service
c. Price
d. Parts not available
e. Treatment by personnel
f. Cannot get work done quickly enough
g. Service Department hours
h. Length of time to get service at companies
i. Time it takes to get repair order written up
j. Other
19. Have you returned to this company for any type of service during the past 12 months?
a. Yes
b. No
c. Not sure
20. For your most recent visit to this company, what type of service did you have done?
a. Routine maintenance
b. Repairs
c. Service repairs you paid for
d. Warranty-covered repairs
e. Other
21. Overall, how satisfied are you with this service experience?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very Dissatisfied
22. Did you have any concerns with the company’s handling of this service visit?
a. Yes
b. No
23. Did you let the company know about your concern(s)?
a. Yes
b. No

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24. Was your concern(s) resolved?
a. Yes
b. No
25. How satisfied were you with the action taken by the company to address your concern(s)?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very Dissatisfied

Product Purchases
This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.15

1. How often do you buy the product(s)?
a. Once per week or more often
b. 2 to 3 times per month
c. Once per month
d. Once every 2-3 months
e. Once or twice a year
f. Less than once a year
g. Not sure
2. How likely are you to buy the product(s) in the future?
a. Very Unlikely
b. Somewhat Unlikely
c. Not sure
d. Somewhat likely
e. Very likely
3. Over all, how satisfied are you with the product(s)
a. Very satisfied
b. Somewhat satisfied
c. Neutral
d. Somewhat dissatisfied
e. Very dissatisfied
4. What are some aspects of the product(s) that can be improved?
5. Based on your experience, how does the product(s) compare with other brand product?
a. the product(s) is better
b. About the same
c. the product(s) is worst
d. Not sure
6. How often do you typically use the product(s)?
a. Daily
b. Weekly
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c. Less than monthly
d. Do not use
e. Not sure
7. Where do you primarily use the product(s)?
a. At home
b. At the office
c. Another location
d. Do not use it
8. How frequently are you using the product(s) as compared to a month ago?
a. More frequently
b. About the same
c. Less
d. Not sure
9. Do you wait for the product(s) to go on sale to purchase it?
10. Do you typically read the back and side panel of the products package?
a. Yes
b. No
c. Don't remember
11. How familiar are you with the product(s)
a. Use it on a regular basis
b. Use it sporadically
c. Heard of it but never used it
d. Never heard of it
12. What other brands of product(s) in this category have you heard of or used before?
a. Brand A
b. Brand B
n

c. Brand
d. Don't know
e. None or Other
13. Which of the following attributes enticed you to try the product(s) initially?
a. Looks good
b. Easy to use/convenient
c. Price Value
d. Solves Problem
e. Readily available
f. Best quality
g. Good selection
h. Just what I need
i. Advertising
j. Not sure or Other

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Customers’ Electrical / Electronic Product Purchases
This is a Differential Analysis Survey.
This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:
Customer Surveys

as an Excel file: Part_N.1.16

1. Approximately how many times did you shop for electrical or electronic products in the past
year?
2. Indicate the approximate total amount your family spent on electrical or electronic products
within the last year.
a. Less than $300
b. $300 - $499
c. $500 - $799
d. $800 - $999
e. $1,000 - $2,499
f. More than $2,500
g. Don't know/Not sure
3. During the past year, have you or a member of your family purchased a major electrical or
electronic product?
4. If yes, what item was purchased?
a. TV (priced more than $800)
b. TV (priced between $400 and $799)
c. TV (priced less than $400)
d. DVD Recorder / Home cinema
e. Home Computer
f. Household White Goods
5. What was the total amount spent on the item(s)?
6. If you purchased accessories, how much did you pay for these items?
7. While deciding to purchase the products:
a. How many phone calls were made to retailers for information about the product?
b. How many visits did you make to different retailers?
8. The total number of hours spent inside retail stores while making this decision?
9. How many brands or individual products did you examine in the different retail stores?
10. The item was purchased:
a. as a gift for someone not in your household.
b. as a gift for someone in your household.
c. to be used mostly by other members of your household.
d. to be used mostly by yourself.
e. Other
11. How many times have you purchased items in this product category in the past 10 years?
a. 0
b. 1
c. 2
d. 3-4
e. More than 5 times
f. Don't know/Not sure

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12. Which of the following have you purchased most recently?
a. Microwaves
b. Audio/car stereo/radios
c. Calculators
d. Video / Computer games
e. Computer
f. Phones
g. TVs
h. DVDs
i. Cameras
j. Household white goods
k. Other
13. Approximately how many times did you shop for electronic products in the past year?
14. Indicate the approximate total amount your family spent on electronic product within the last
year.
a. Less than $300
b. $300 - $499
c. $500 - $799
d. $800 - $999
e. $1,000 - $2,499
f. More than $2,500
g. Can't say
15. During the past year, have you or a member of your family purchased a major home
appliance or white good product?
16. How much did you pay for the item(s)?
17.
18.
19.
20.
21.
22.

If you purchased accessories, how much did you pay for these items?
How many phone calls were made to retailers while deciding to purchase this product?
How many times did you visit the different retail stores?
The total number of hours spent inside retail stores while making this decision?
How many brands or individual products did you examine in the different retail stores?
The item was purchased for the following reasons

23. How many times have you purchased items in this product category in the past 10 years?
a. 0
b. 1
c. 2
d. 3-4
e. 5-6
f. More than 6 times
24. Which of the following have you purchased within the last month?
a. Microwave
b. Household white goods
c. audio/car stereo/radio/cassette
d. Calculator
e. Video / computer game
f. Computer
g. Phone
h. TV
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i.
j.
k.

DVD or Home cinema
Camera
Other

25. In thinking about your most recent experience with the Company, was the quality of customer
service you received:
a. Excellent
b. Good
c. Average
d. Poor
e. Very poor
26. If you were not totally satisfied with the customer service, describe the reasons for your
dissatisfaction.
27. Was the process for getting your question resolved:
a. Excellent
b. Good
c. Average
d. Poor
e. Very poor
28. If you were not totally satisfied with the process of getting your problem resolved, describe the
reasons for your dissatisfaction.
29. Would you say the value of the Company product, as compared to its price, is:
a. Excellent
b. Good
c. Average
d. Poor
e. Very poor
30. The following questions pertain to the customer service representative you spoke to most
recently:
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree
31. The customer service representative was very courteous.
32. The customer service representative handled my call quickly.
33. The customer service representative was very knowledgeable.

34.
35.
36.
37.

The following questions pertain to the process by which your most recent service contract
was handled:
The waiting time for having my questions addressed was satisfactory.
My phone call was quickly transferred to the person who best could answer my question.
The automated phone system made the customer service experience more satisfying.
Consider the total package of the Company including customer service, features and benefits,
and cost. How satisfied are you with the company?

38. If the Company’s Products were no longer available, what would you replace it with?
a. Functional Competitors

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b. In-Kind Competitors
39. All things considered, over the next 12 months how likely are you to replace the Company's
Products?
a. Certain
b. High Chance
c. Not sure
d. Low Chance
e. Never
40. If you are looking to replace Company's Products, what are some of the reasons for doing
so?
41. Overall how satisfied are you with the product(s)?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
42. What are some things that the Product/Service could do better?
43. In your opinion is the product better, about the same or worse than other company’s
product(s)?
a. Better
b. About the same
c. Worse
44. How often do you typically use the product?
a. Daily
b. weekly
c. Less than monthly
d. Do not use
45. Where do you primarily use the product(s)?
a. At home
b. At the office
c. Another location outside the house
d. Not using it
e. Other
46. How often are you using the product(s) as compared to a month ago?
a. More
b. About the same
c. Less
d. Can't say
47. Do you usually buy this product on sale?
a. Yes
b. No
c. Doesn't matter
48. Do you typically read the back and side panel of the products package?
a. Yes
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b. No
c. Not sure
49. How familiar are you with the product(s)?
a. Very familiar (use on a regular basis)
b. Somewhat familiar (use it only sometimes)
c. Familiar but never used it
d. Never heard of product before
50. What other brands of product(s) in this category have you heard of?
51. What were reasons for trying this product?
a. Looks good
b. Easy to use/convenient
c. Price Value
d. Solves Problem
e. Readily available
f. Best quality
g. Good selection
h. Just what I need
i. Advertising
j. Have not used
k. Other
52. How much did you pay for the product(s)?
53. How long have you used the product(s)?
a. Less than 1 month
b. 1 to 6 months
c. 6 months to 1 year
d. 1 to 3 years
e. Not sure
f. Never used
g. Other
54. How often do you use the product(s)?
a. Daily
b. Once/week
c. 2 to 3 times a month
d. Once/month
e. Ever 2-3 months
f. 2-3 times a year or less
g. Not sure
h. Other
55. Overall, how satisfied are you with the Product / Service?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
f. Not sure

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56. How likely are you to use/purchase the product(s) again?
a. Definitely
b. Probably
c. Not sure
d. Probably not
e. Definitely not
f. Never used
57. Would you recommend the Product or Service to others?
a. Definitely
b. Probably
c. Not sure
d. Probably not
e. Definitely not
f. Never used
58. What recommendations would you offer for improving the Product or Service?

Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.

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Customers’ Fashion Demographic and Retail Clothing Shopping
This is a Differential Analysis Survey of female respondents.
Customer Surveys

as an Excel file: Part_N.1.17

Demographics plus use of clothes price to help profile the shopper:
1. Within what price range are the daytime clothes you typically purchase?
a. $30.00 or less
b. $30.01 to $50.00
c. $50.01 to $70.00
d. $70.01 to $90.00
e. $90.01 to $110.00
f. $110.01 to $130.00
g. $130.01 to $150.00
h. $150.01 to $170.00
i. $170.01 to $210.00
j. More than $210.00
2. When shopping for everyday clothes, how many stores do you typically visit?

Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.

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Customers’ Fashion Attitudes
This is a Differential Analysis Survey of female respondents.
Attitudes and Life Style for clothing and fashion shopping:
Customer Surveys

as an Excel file: Part_N.1.18

Listed below are statements about shopping behaviour for clothes and about clothing fashions:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

I buy clothes I like, regardless of current fashion.
I buy new fashion looks only when they are well accepted.
I am not as concerned about fashion as I am about modest prices and functionality.
I prefer to buy well-known designer labels rather than take a chance on something new.
My friends regard me as a good source of advice on fashion selection.
I am confident of my own good taste in clothing.
I'm not afraid to be the first to wear something different in fashion looks.
I like to buy clothes.
I feel good when I buy something new.
I like clothes that make the most of my figure.
I am the first to try new fashions; therefore many people regard me as being a fashion
pacesetter.
12. In this period of rising prices, spending excessive amounts of money on clothes is ridiculous.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.

What you think of yourself is reflected by what you wear.
I plan my shopping trips carefully.
You can tell you are just a bit better than someone else if you dress better than they do.
A man wouldn't look twice at a woman who wasn't well dressed.
A woman wouldn't look twice at a man who wasn't well dressed.
Wearing good clothes is part of leading the good life.
I plan my wardrobe carefully.
I resent being told what to wear by so-called fashion experts.
I like clothes that emphasise my femininity.
Fashion in clothing is just a way to get more money from the consumer.
I often find I don't have all the accessories to go with my outfits.
I shop for coordinated outfits.
There is something wrong with a woman who doesn't care about dressing nicely.
There is something wrong with a man who doesn't care about dressing nicely.

Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.

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Shopping Life Style Battery
Life style questions for classification of retail shoppers:
Customer Surveys

as an Excel file: Part_N.1.19

Statements about shopping behaviour for clothes and about clothing fashions.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.

I don't like to go shopping.
I buy less clothing because of rising prices.
I like having something suitable to wear for any occasion.
I make purchases only when there is a need, not on impulse.
I often go shopping to get ideas even though I have no intention of buying.
I prefer to shop in stores that offer a wide variety of clothing selections.
I shop only when I have to replace items which have worn out or are out of style.
I go shopping often.
I like to go to stores to see what's new in clothing.
I make fewer shopping trips because of the high cost of gasoline.
Because of my active lifestyle I need a wide variety of clothes.
I like to shop in many different stores.
I find more of my clothes and accessories in off-beat shops than in traditional department and
specialty shops.
I am current with forward fashion trends as pictured in advanced fashion magazines.
I like to experiment with my clothes so that I won't look like everyone else.
I like classic looks, but only if they are updated to reflect current fashion trends.
I don't buy clothes that would make me stand out from everyone else.
I prefer traditional styling in my clothes.
If I have the time to select clothes, I tend to buy fewer

Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.

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Supermarket & Food Shopping Attitudes
This is a Differential Analysis Survey.
Supermarket & Food shopping attitude inventory:
Customer Surveys

as an Excel file: Part_N.1.20

Views on supermarket & food store shopping issues.
1. I prefer to invite friends over for dinner rather than take them out to eat.
2. If a product is out of stock in a supermarket I would substitute rather than go to another store
to get it.
3. I would rather shop in a large supermarket than a small supermarket.
4. I enjoy preparing meals at home.
5. I plan meals ahead of my shopping trip.
6. A supermarket is a good place to buy CDs and tapes.
7. I like supermarket shopping.
8. If they were available, I would buy hot, ready-to-eat foods (e.g., pizza, chicken) in a
supermarket.
9. Supermarkets make too much money.
10. I use as many coupons as I can to keep my grocery bill down.
11. A supermarket is a good place to buy automotive products.
12. I like to try new grocery products when they first come out.
13. Supermarkets do a good job in meeting the needs of single shoppers.
14. Too many products are out of stock when I shop.
15. The way supermarkets are laid out makes it easy to find the products I need.
16. Supermarkets would overcharge if they thought they could.
17. I try to save time by buying all groceries at one store.
18. I have been buying less Convenience Foods to cut back on my grocery spending.
19. Computerised checkout scanners benefit shoppers.
20. I normally buy some products on my grocery shopping trip that I hadn't planned to.

Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.

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Supermarket & Food Store Selection Criteria
This is a Differential Analysis Survey.
Battery of questions to identify factors important in selection of a Supermarket or Food Store:
Customer Surveys

as an Excel file: Part_N.1.21

Select the answer that best expresses how important you think the factor is to you in selecting a
supermarket.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.

Fast checkout
A gourmet food section
Low priced advertised specials
Close to where you live
Offers coupons in newspaper advertisements
Courteous, friendly employees
Offers generic products
Makes it easy to cash checks
Large selection of wines
Offers several brands to choose from in a category
Provides menu and recipe ideas
Convenience of parking
High quality fruits and vegetables
Has a prescription pharmacy in store
Wide selection of ethnic foods (i.e., Mexican, Japanese, etc.)
Open 24 hours
Quality of meat cuts
Wide selection of store private labels
A service deli (with clerks to prepare product of your choice)
Provides nutritional information about products
Wide selection of national brands
Has bakery in the store
Offers a variety of health and personal care products
Offers variety of smaller size (e.g., single serving) products
Large selection of fruits and vegetables
Sells fresh seafood

Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.

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Where would you shop for...?
This is a Differential Analysis Survey.
Comparative list of retail merchandise items to profile store preference by merchandise category:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.22

Thinking of all the stores in this area where you or your family might shop, in which store would you
most likely shop for the following items?
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.

Men's underwear
Women's underwear
Sports equipment
Men's sweaters
Women's dresses
Fishing tackle
Costume jewellery
Maintenance-free battery for a car
Auto oil filter and/or motor oil
Power lawnmower and other power garden tools
Exterior house and trim paint
Jeans for yourself
Small kitchen appliances
Sports or casual slacks
Portable TV
A digital camera
Installation of a car exhaust system
Ceiling fans and accessories
Paint for your living room
Small power tools such as a power drill
Mobile phone
Hand tools such as hammers, screw drivers
Easy to assemble furniture
Exercise equipment
Bicycles for yourself or your children

Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.

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Service Concept Test
This is a Differential Analysis Survey.
Customer Surveys

as an Excel file: Part_N.1.23

1. Rating of the Company’s Service Offerings:
a. Low
b. High
c. Quality
d. Price
e. Trustworthy Brand
f. Craftsmanship/Design
g. Value for Price Paid
2. What features/attributes of this service are the most valuable to you?
3. What do you find least appealing about this service?
4. Overall, how interested are you in buying this service in the future?
a. Not at all interested
b. Not very interested
c. Neither interested nor uninterested
d. Somewhat interested
e. Extremely interested
5. Based on the description, what price would you expect to pay for the service?
6. If additional features were added to the basic concept, what would expect to pay?
7. If you wanted to buy/have this new service, which purchase method would you most prefer?
a. Calling and ordering by telephone
b. Ordering through the mail
c. Going to the company/place of business/office
d. Using the Internet
e. Other
8. Which groups of people do you expect to be the greatest users of this service?
a. Self
b. Family member
c. Co-worker
d. Business/Organisation
e. Student
f. Other adult
g. Teen 13-18 years
h. Child 8-12 years
i. Child 2-7 years
j. Infants
9. How often do you use products from this service(s) category?
a. Every day
b. Once a week
c. About every two weeks
d. Once a month
e. Every three months
f. Two-three times a year
g. Once a year
h. Less often
i. Never used
10. How aware are you of the following companies that offer similar services?

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Customer service evaluation and feedback survey
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.24

1. How did you contact customer service?
a. Email
b. Fax
c. Telephone
d. Web
e. In person
f. Other
2. If you called on the phone, how quickly did you get through?
a. Immediately
b. Under 30 seconds
c. About 1 minute
d. 2-5 minutes
e. More than 5 minutes
f. I left a message
g. Does not apply
h. Other
3. If you contacted customer service by fax or email, how long did it take to get a response?
a. Under 2 hours
b. 2-6 hours
c. 6-12 hours
d. 1 business day
e. More than 1 business day
f. They didn't get back to me
g. Does not apply
4. What was your reason for contacting customer service?
a. Not satisfied with product
b. Did not receive product
c. Unable to order product/service
d. Problem with Web site
e. Needed more product information
f. Cancel subscription or membership
g. Other
5. Overall how satisfied are you with the company’s customer service representative?
a. Very satisfied
b. Satisfied
c. Average
d. Dissatisfied
e. Very dissatisfied
f. Very dissatisfied

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Customer Service Evaluation
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.25

1. Have you ever bought / ordered the product(s) from the retailer?
2. Overall, how would you rate the Customer Service from retailer?
a. Excellent
b. Good
c. Average
d. Poor
e. Terrible
f. Not Sure
3. How satisfied are you with the Customer Service from the retailer?
a. Extremely satisfied
b. Very satisfied
c. Neutral
d. Very dissatisfied
e. Extremely dissatisfied
4. Would you recommend the Customer Service from the retailer to a friend?
a. Yes
b. No
c. Not Sure
d. If no, why not?
5. For your NEXT product(s) purchase, how likely are you to purchase from the retailer?
a. Definitely would buy
b. Probably would buy
c. Might or might not buy
d. Probably would not buy
e. Definitely would not buy
6. Which of the following modes did you use to place the order for the product(s)?
a. In-store
b. Mail order
c. Internet
d. Over the phone
e. Fax
f. Other
7. What are the THREE main reasons you didn't purchase the product(s) from another
company?
8. What would you change about the process of purchasing the product(s) (i.e. placing the
order, mode of payment, delivery, etc.) from the retailer?
9. How did you contact customer service?
a. Email
b. Fax
c. Telephone
d. Web
e. In person
f. Other
10. If you called on the phone, how quickly did you get through?
a. Immediately
b. Under 30 seconds
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c.
d.
e.
f.

About 1 minute
2-5 minutes
More than 5 minutes
I left a message

11. If you contacted customer service by fax or email, how long did it take to get a response?
a. Under 2 hours
b. 2-6 hours
c. 6-12 hours
d. 1 business day
e. More than 1 business day
f. They didn't get back to me
12. What was your reason for contacting customer service?
a. Not satisfied with product
b. Did not receive product
c. Unable to order product/service
d. Problem with Web site
e. Needed more product information
f. Cancel subscription or membership
g. Other
13. Overall, how would you rate your satisfaction with the company’s customer service
representative?
a. Extremely satisfied
b. Satisfied
c. Neutral
d. Unsatisfied
e. Extremely unsatisfied
14. Do you have comments or suggestions that would help us improve the company’s customer
service?
15. Overall, I am very satisfied with the way the retailer performed (is performing).
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree
16.
17.
18.
19.
20.

Service representatives are well trained.
Service representatives are well supervised.
Service representatives adhere to professional standards of conduct.
Service representatives act in the company’s best interest.
Overall, I am satisfied with the service representatives.

21.
22.
23.
24.
25.

The senior staff are knowledgeable and professional.
I feel like I have a good personal relationship with the senior staff.
The senior staff are making a positive contribution to the company’s business.
The senior staff responds to the company’s inquiries in a timely manner.
Overall, I am very satisfied with the senior staff.

26. What would be the primary reason for being very satisfied with the retailer service
representatives?
27. What would be the primary reason for being very satisfied with the retailer store senior staff?
28. Compared to how you felt about the retailer before, what would you say is the likelihood of
purchasing again?
a. Better, based on performance
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3 Suisses International Group - France
b. About the same
c. Worse, based on performance
d. Not sure
29. Considering the overall value of the project you paid for, was it
a. An exceptional value, worth more than you paid for it
b. A good value, worth about what you paid for it
c. A poor value, worth less than you paid for it
d. Not sure
30. Overall, how do you feel about your experience the service provided?
a. Excellent
b. Very Good
c. Good or Fair
d. Poor
31. How would you rate the product for ease of use?
a. Excellent
b. Very Good
c. Adequate
d. Poor or Very Poor
32. In speaking with the support representative, how would you rate the following?
a. Friendly
b. As friendly as I expected
c. Friendly
d. Average
e. Less friendly than I expected
f. Unfriendly
33. Professionalism
a. As professional as I expected
b. Professional
c. Neither professional nor unprofessional
d. Less professional than I expected
e. Unprofessional
34. Interest in solving your problem
a. As interested as I expected
b. Very interested
c. Interested
d. Neither interested nor uninterested
e. Uninterested
35. When solving your problem, how would you rate the information provided?
a. Extremely well presented and understandable
b. Well presented and understandable
c. Sufficient to solve the problem
d. Difficult to understand
e. Extremely difficult to understand
36. Understanding of the problem
a. Very satisfied that my problem was understood
b. Somewhat satisfied that my problem was understood
c. Unsure that my problem was understood
d. My problem was not understood
e. Did not have the ability to solve my problem
37. Was your problem solved on this call?
a. Yes
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b. No
38. If you needed to contact the company's support service again and were given the option to
speak with this representative, would you?
a. Yes
b. No
39. How would you rate the company's support as compared to that of other companies?
a. much better than other companies' support.
b. better than other companies' support.
c. about the same quality as other companies' support.
d. worse than other companies' support.
e. much worse than other companies' support.
f. I have never contacted another company for support.
40. What features/attributes of this support service are the most valuable to you?
41. What do you find least appealing about this support service?
42. Overall, how interested are you in buying this support service?
a. Not at all interested
b. Not very interested
c. Neither interested nor uninterested
d. Somewhat interested
e. Extremely interested
43. Based on the description, what price would you expect to pay for the support service?
44. If you wanted to use the support service, which purchase method would you most prefer?
a. Calling and ordering by telephone
b. Ordering through the mail
c. Going to the company/place of business/office
d. Using the Internet
e. Other
45. Who do you expect will use the support service most?
a. Self
b. Family member
c. Co-worker
d. Business/Organisation
e. Student
f. Other
46. How often do you use products from this product(s) in this category?
a. Every day
b. Once a week
c. Once a month
d. Every three months
e. several times a year
f. Less often
g. Never used
47. How aware are you of the following companies that offer similar services?

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Customer Support Satisfaction Survey
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.26

1. Do you consider the problem resolved?
2. Was your question or issue resolved the first time you contacted technical support?
3. What is your overall satisfaction with this particular phone support experience?
4. Did you attempt to use the company’s online support web site before making this call?
5. If yes, how satisfied were you overall with this online support experience?
6. How satisfied are you with the company’s technical support in general?
7. We sincerely appreciate any comments or suggestions you have which will improve your
satisfaction with the company’s service.
8. In your most recent customer service experience, how did you contact the representative?
a. In person
b. By telephone
c. Internet
d. Through a dealer
e. Other
9. There was sufficient information available on the support web site to solve my problem.
a. Strongly Agree
b. Somewhat Agree
c. Neutral
d. Somewhat Disagree
e. Strongly Disagree
Did the company’s representative:
10. Quickly identify the problem
11. Appear very knowledgeable and competent
12. Help you understand the causes and solution to your problem
13. Handle problems with courtesy and professionalism
14. About how long did you have to wait before speaking to a representative?
a. I was taken care of immediately
b. Within 3 minutes
c. 3-5 minutes
d. 5-10 minutes
e. More than 10 minutes
15. About how long did it take to get this problem resolved?
a. Immediate resolution
b. Less than one day
c. Between 1 and 3 days
d. Between 3 to 5 days
e. More than a week
f. The problem is still unresolved
16. How many times did you have to contact customer service before the problem was corrected?
a. Once
b. Twice
c. Three times
d. More than three times
e. The problem is still not resolved

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17. Overall, how satisfied are you with the customer service experience?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
18. If you were less than totally satisfied, what could have been done to serve you better?

Product or Technical Services Evaluation
Where applicable.
Customer Surveys

as an Excel file: Part_N.1.27

How satisfied are you:
1. With your experience of the most recent company Product or Technical Services?
2. With the timeliness of the company's Product or Technical Services?
3. With the quality of the Product or Technical Services?
4. That company Product or Technical Services personnel are sufficiently knowledgeable and
professional?
5. With the company's Technical service overall?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree
f. Not sure
6. With the communication between you and the company overall?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
f. Not sure
7. With the overall quality of the company's sales service?
a. Excellent
b. Very good
c. Good
d. Fair
e. Poor
8. With the overall value of the company's services compared with the price paid?
a. Excellent
b. Very good
c. Good
d. Fair
e. Poor
9. Would you recommend the company’s services?
a. Yes
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3 Suisses International Group - France
b. No
c. Not sure
Information about the Product / Brand purchased:
10. Name of store where purchased:
11. What type of Brand / product did you purchase?
12. How would you describe this purchase?
a. First time purchase
b. Addition to current Brand product(s) owned
c. Addition to product owned (other brand)
d. Replacement of Brand product owned
e. Replacement of product owned (other brand)
13. What other brands did you consider?
14. How do you plan to use this product?
a. For Home
b. For Work
c. For School
d. For the Outdoors
e. Other
15. Was this product...
a. received as a gift?
b. purchased?
16. How did you first learn about Brand products?
a. Friend/relative
b. Salesperson
c. Ads/promotions
d. Via the internet/website
e. In-store display
f. Other
17. Which of the following MOST influenced your purchase of Brand products?
a. In-store display
b. Previous experience with the brand
c. Price/Good value
d. Style/Appearance
e. Colour/Design
f. Size/Capacity
g. Weight
h. Warranty
i. Comfortable
j. Quality construction
k. Durability

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Satisfaction: Product & Technical Documentation
Customer Surveys

as an Excel file: Part_N.1.28

1. How satisfied are you with the Technical Documentation
a. Very Satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very Dissatisfied
2.
3.
4.
5.
6.

Technical Documentation: with the appropriateness of the documentation to your needs?
Technical Documentation: with the quality of the documentation delivered?
Technical Documentation: with the accuracy of the documentation delivered?
Technical Documentation: with the usability of the documentation provided?
Technical Documentation: overall with the documentation provided?

7. What should the retailer do to improve the quality of the documentation?
8. The retailer understands the service needs of their customers.
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree
9. How would you rate the retailer overall?
a. Poor Fair
b. Good
c. Very Good
d. Excellent
10. Overall, the quality of Company's sales service is:
a. Poor Fair
b. Good
c. Very Good
d. Excellent
11. Overall, the value of Company's services compared with the price paid is:
e. Poor Fair
f. Good
g. Very Good
h. Excellent
12. Would you recommend Company's products / services to friends or colleagues?

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Customer Services Evaluation
Customer Surveys

as an Excel file: Part_N.1.29

How satisfied are you:
1. with your experience of the most recent Technical Services or Product Services?
2. with the timeliness of the company’s Services?
3. with the quality of the company’s Services?
4. that the personnel are sufficiently knowledgeable and professional?
5. with the company’s installation service overall?
6. The company understands my service needs.
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree
f. Not sure
7. Overall, how satisfied are you with the amount of contact between you and the company?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
f. Not sure
8. Overall, the quality of the company's sales organisation's service is:
a. Excellent
b. Very good
c. Good
d. Fair
e. Poor
9. Overall, the value of the company's services compared with the price paid is:
a. Excellent
b. Very good
c. Good
d. Fair
e. Poor
10. Would you recommend the company's services to family, friends or colleagues?
a. Yes
b. No
c. Not sure
Rate your satisfaction with the dealer service department on each of the following:
11. How satisfied are you with?
a. Ease of scheduling service?
b. Completion of the service in the time promised?
c. Explanation of the work performed?
d. Effort of the dealership to obtain parts
e. Overall performance of the person who prepared your service order?
f. Effort of the dealership to see that the service was done right?

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12. Select the category of service work performed for the last service visit:
a. Warranty
b. Non-warranty
c. Scheduled maintenance
d. Other
13. Was your product fixed right the first time?
a. Yes
b. No
c. Not sure
14. After your service visit, did someone from the company contact you by phone or by mail to
see if you were satisfied with the overall service experience?
15. Would you recommend this company to a friend or relative as a place to have their products
serviced?
a. Definitely
b. Probably
c. Not sure
d. Probably not
e. Definitely not
16. Should you need service again, would you return to this company?
a. Definitely
b. Probably
c. Not sure
d. Probably not
e. Definitely not
17. If you are not totally satisfied with the service, state below the reason(s) for your
dissatisfaction.
Indicate your opinion of the following statements about salespersons:
18.
19.
20.
21.
22.
23.
24.
25.

Salespeople are knowledgeable about their products.
Salespeople promptly service customers as they enter the store.
Salespeople are courteous.
Salespeople are well groomed.
Salespeople accurately presented product information.
Salespeople adequately explained service policy.
Salespeople are friendly.
I am very satisfied with the customer service at the store.

26. How long did you have to wait before a salesperson attended to you?
a. 0-2 minutes
b. 3-5 minutes
c. 6-10 minutes
d. 11-15 minutes
e. more than 15 minutes
27. On your most recent service, how would you rate the service in the following areas?
a. Quality of work performed
b. Avoiding inconveniencing you
c. Making you feel comfortable
d. Willingness to go out of their way to satisfy you
e. Friendliness and helpfulness of cashiers
f. Having convenient hours for service
g. Ease of obtaining an appointment
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h.
i.
j.
k.
l.
m.

Quickly acknowledging your arrival
Promptness in handling repair work
Arranging replacement
Performance of repairs
Clean, comfortable waiting area
On time delivery

28. Did the following things occur on your most recent service visit?
a. You were explained the work to be performed beforehand.
b. You were explained the work performed and the breakdown of the charges.
c. You were informed when the work was done.
d. The paperwork was completed and waiting
e. They contacted you to ensure the work was performed to your satisfaction
29. What could the company do to improve the service experience?
30.

How satisfied are you with the customer service you received most recently:
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied

31.

If you were not totally satisfied with the customer service, describe the reason(s) for your
dissatisfaction?
Describe the aspects of the service that you were completely satisfied with?

32.
33.

How satisfied are you with the process of getting your question resolved.
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied

34.

If you were not totally satisfied with the process of getting your question resolved, describe
the reason(s) for your dissatisfaction?
If you were satisfied with the process of getting your question resolved, describe the
reason(s) for your satisfaction?

35.

36.

How would you rate the product's value for money:
a. Excellent
b. Good
c. Fair
d. Poor
e. Not sure

37.
38.

What aspects of the product(s) were of no benefit to you?
What aspects of the product(s) were most beneficial for you?

Choose an option that closely represents your opinion about the customer service representative that
you spoke to recently:
39.

The customer service representative was very courteous.
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree
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40.

The customer service representative handled my call quickly.
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree

41.

The customer service representative was very knowledgeable.
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree

Choose an option that closely represents your opinion about the process with which your most recent
service contract was handled:
42.

The waiting time for having my questions addressed was satisfactory.
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree

43.

My phone call was quickly transferred to the person who best could answer my question.
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree

44.

The automated phone system made the customer service experience more satisfying.
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree

Consider the total package i.e. the customer service, the product(s) features, benefits, and cost:
45.

How satisfied are you with the company?
a. Very Satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very Dissatisfied

46.

If the product(s) were no longer supplied by the company, what would you replace it with?
a. Functional Competitors
b. In-Kind Competitors

47.

All things considered, over the next 12 months how likely are you to replace the Company’s
product(s) with a Competitor’s Products?
a. Very certain
b. High chance
c. Low chance
d. No chance
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e. Not sure
48.

What are some of the reasons that you are looking to replace the Company’s product(s)
during this year?

Help Desk Support:
How satisfied are you with:
49. overall quality of telephone support?
50. overall quality of on-site support?
51. knowledge and professionalism of the help desk support staff?
52. knowledge and professionalism of on-site support engineers?
53. communication and follow-up on problem resolution?
54. ability of help desk to diagnose your problem?
55. ability of the help desk to solve your problem?
56. time required to resolve your problem?
57. overall quality of the solution?
58. maintenance services offered?

59. How could the company improve the quality of support we provide to you?
60.

The company understands the service I need.
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree
f. Not sure

61.

Overall, how satisfied are you with the amount of contact between you and the company?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
f. Not sure

62.

Overall, the quality of the company's sales department service is:
a. Excellent
b. Very good
c. Good
d. Fair
e. Poor

63.

Overall, the value of the company services compared with the price paid is:
a. Excellent
b. Very good
c. Good
d. Fair
e. Poor

64.

Would you recommend the company services to family and friends?
a. Yes
b. No
c. Not sure
d. Other

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65.

In evaluating your most recent customer service experience, was the quality of service you
received:
a. Very poor
b. Somewhat unsatisfactory
c. About average
d. Very satisfactory
e. Excellent

66.

What about the service experience stands out?

67.

Was the process for getting your problem resolved:
a. Very poor
b. Somewhat unsatisfactory
c. About average
d. Very satisfactory
e. Excellent

68.

What about the process of getting your problem resolved stands out?

Evaluate the customer service representative:
69.

The customer service representative as very courteous.
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree

70.

Was there anything about the courteousness of the service that stands out as being
superior?
a. Patient
b. Enthusiastic
c. Listened carefully
d. Friendly
e. Responsive
f. Other

71.

What about the representative could be improved?
a. Not patient
b. Not enthusiastic
c. Didn't listen carefully
d. Unfriendly
e. Unresponsive
f. No improvement needed
g. Other

72.

The customer service representative handled my call quickly.
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree

73. What would best describe what happened?
a. Kept me waiting on hold
b. Had to explain several times
c. Didn't know how to handle the problem
d. Had to ask others
e. Spoke slowly
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3 Suisses International Group - France
f. No improvement needed
g. Other

74.

The customer service representative was very knowledgeable.
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree

75. What would best describe what happened?
a. Gave me the wrong information
b. They didn't understand the question
c. Gave unclear answers
d. Couldn't solve problem
e. Disorganised
f. No improvement needed
g. Other
76.

The waiting time for having my question addressed was satisfactory.
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree

77.

My phone call was quickly transferred to the person who best could answer my question.
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree

78.

How long have you used the service(s)
a. Less than one month
b. 1 to 6 months
c. 6 months to a year
d. 1 to 3 years
e. Over 3 years
f. Never
g. Other

79.

How often do you use the product(s) / service(s)?
a. Daily
b. Once/week or more
c. 1 to 3 times a month
d. Once/month
e. Every 2-3 months
f. 2-3 times a year
g. Other

80.

Overall, how satisfied are you with the product(s) / service(s)?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied

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81.

How likely are you to use/purchase the product(s) / service(s) again?
a. Very likely
b. Probably
c. Maybe
d. Probably not
e. Definitely not
f. Never used

82.

Would you recommend the product or service to others?
a. Definitely
b. Probably
c. Maybe
d. Probably not
e. Definitely not
f. Never used

83.

What recommendations would you offer for improving the product(s) / service(s)?

Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.

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Website Evaluation
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.30

1. How often you visit the company’s website.
a. Everyday
b. Once a week
c. Once a month
d. Rarely
2. When you visit the site, are you using the computer from
a. Office
b. Home (including a home office)
c. Equally from the home and office
d. Other
3. Would you say the company’s web site is:
a. Very attractive
b. Somewhat attractive
c. Average
d. Not very attractive
4. How much effort did you have to take to find the company’s web site?
a. A lot less than I expected
b. Less than I expected
c. About what I expected
d. More than I expected
5. From your experience with other sites, rate the following features of the web pages:
a. Visual appearance/layout
b. Content
c. Writing style
6. From your experience, what do you find is the biggest challenge in using the company’s site?
a. I am new to the Internet
b. Information I am looking for is not available
c. Information is not well organised
d. There is just too much information
e. Hard to navigate through the information
f. Takes too long to load a page
g. Downloadable files or forms are in a format I cannot use
7. Did the menu of items on the home page make sense to you?
8. Did you experience any problems downloading files?
9. How did you hear about the Website?
a. Literatures: list source
b. Hotline
c. Retailer
d. Industry
e. Newsletters/literature
f. Media (newspaper, radio, TV)
g. Associate/friend
h. Followed Link from another web page
i. Search engine or Other

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Online Retailer Evaluation
Battery of questions focusing on attitudes about purchasing online and at this company’s site:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.31

Thinking about your experience with this internet retailer, indicate your opinions about the following
statements:
1. I prefer making a purchase from this Internet retailer over using local offices, malls or stores.
2. I prefer this Internet retailer over other home shopping services (i.e., catalogues, "1-800"
services or television).
3. This Internet retailer doesn't just sell products or services--it entertains me.
4. I received special rewards and discounts from doing business with this Internet retailer.
5. I say positive things about this Internet retailer to other people.
6. I consider this Internet retailer to be my first choice when I need products or services of this
type.
7. The "look" of this Internet site is appealing to me.
8. I really like doing business with this Internet retailer.
9. I intend to continue to visit this Internet retailer's site in the future.
10. I intend to purchase from this Internet retailer in the future.
11. This Internet retailer is one of the first places I intend to look when I need the type of
merchandise or services it provides.
12. It would require a lot of time and effort on my part, to set up an account with another Internet
retailer.
13. It would take a lot of time and energy to look for another Internet retailer for this type of
product.
14. The products and/or services I purchased from this Internet retailer were a good value.
15. I enjoy doing business with this Internet retailer.

Purchasing on the Internet
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.32

1. Have you purchased products online, who did you purchase from, what did you spend?
2. In the past three months, have you purchased products or services through the Internet, for
your personal use?
3. Which products or services categories have you most recently purchased online?
a. Food
b. Clothing
c. Household goods & articles
d. Electricals & Electronic products
e. Computers or peripherals
f. Software
g. CDs/DVDs
h. Flowers
i. Concert tickets
j. Travel
k. Fast food
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l.
m.
n.
o.

Books or magazines
Services
Financial & Insurance products
Other

4. Thinking back to the Internet retailers you've purchased from, have you ever:
a. provided feedback of the product or services they sell
b. completed a survey for that Internet retailer
c. communicated with other users via e-mail or chat rooms
d. When you began shopping on the last occasion, were you:
i. Just surfing the net
ii. Intending to make a purchase.
iii. Other
5. How much did you spend on your most recent transaction?
a. Less than $25
b. $26-$50
c. $51-$75
d. $76-$100
e. Over $100
6. Did you return the merchandise or cancel the service after you received it?
7. Did you contact the customer service department of this Internet retailer with a complaint or
problem?
8. How much would you estimate you have spent with this Internet retailer in the past twelve
months?
a. less than $50
b. $51-$100
c. $101-$150
d. $151-$200
e. more than $200
9. How many transactions have you made with this Internet retailer over the past 12 months?
10. Which Internet retailers do you use most?

11. When you began shopping on the last occasion, were you:
a. Surfing the net with no intent to purchase
b. Surfing the net with intent to make a purchase.
c. Other

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Internet Habits and Uses
Habits and uses of Internet users:
Customer Surveys of 3 Suisses International Group:

as an Excel file: Part_N.1.33

1. How comfortable do you feel using the Internet?
a. Very comfortable
b. Somewhat comfortable
c. Neither comfortable nor uncomfortable
d. Somewhat uncomfortable
e. Very uncomfortable
2. How satisfied are you with your current skills for using the Internet?
a. Very satisfied - I can do everything that I want to do
b. Somewhat satisfied - I can do most things I want to do
c. Neither satisfied nor unsatisfied
d. Somewhat unsatisfied - I can't do many things I would like to do
e. Very unsatisfied - I can't do most things I would like to do
3. How comfortable do you feel using computers, in general?
a. Very comfortable
b. Somewhat comfortable
c. Neither comfortable nor uncomfortable
d. Somewhat uncomfortable
e. Very uncomfortable
4. Some websites ask for you to register with the site by providing personal information. What
percentage of the time do you enter false information when asked to register?
a. Rather not say
b. I've never falsified information
c. Under 25% of the time
d. 26 - 50% of the time
e. 51 - 75% of the time
f. Over 75% of the time
g. I've never registered with a site
5. Why don't you purchase more products and services on the web, either for yourself or for
your work/business?
a. Not applicable
b. Never tried it
c. Too complicated to place order
d. Faster/easier to purchase locally
e. Not familiar with vendor
f. Don't trust that my credit card number will be secure
g. No receipt/documentation
h. Difficult to judge the quality of a product/service
i. Not enough information to make a decision
j. Generally uncomfortable with the idea
k. Other
6. In your opinion, what is the single most critical issue facing the Internet?
a. Finding things/navigating around
b. Speed/bandwidth
c. Government regulation
d. Equal access for all
e. Unacceptable adult content
f. Internet crime (e.g. hate crimes, stalking)
g. Paying for online services or information
h. Censorship
i. Privacy
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j.

Other

7. Which of these groups have you become more connected to through the Internet?
a. None
b. People who share my political interests
c. People who share my hobbies/recreational activities
d. People who share my religion
e. People in my profession
f. People in my family
g. People in similar life situations (e.g. self-help groups, support groups)
h. Other groups
8. Complete the following sentence in the way that comes closest to your own views: "Since
getting on the Internet, I have "
a. become MORE connected with people like me.
b. become LESS connected with people like me.
c. Don't know/can't say
9. Which of the following have you done?
a. Ordered a product/service from a business, government or educational entity by filling
out a form on the web
b. Made a purchase online for more than $100
c. Created a web page
d. Customised a web page for yourself (e.g. Google, Yahoo, News Services)
e. Changed your browser's "startup" or "home" page
f. Changed your "cookie" preferences
g. Participated in an online chat or discussion (not including e-mail)
h. Listened to a radio broadcast online
i. Made a telephone call online
j. Used a nationwide online directory to find an address or telephone number
k. Taken a seminar or class about the Web or Internet
l. Bought a book to learn more about the Web or Internet

Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.

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Part N.2 : Supplemental Retail Trade Survey Data
This data is available on a Corporate basis for 3 Suisses International Group
This section provides a battery of supplemental Trade and Industry Surveys.

Business Proficiency of the Company
Expert and Industry Appraisal of 3 Suisses International Group:

as an Excel file: Part_N.2.1

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Company leadership is fully committed to the long-term success of their sales partners.
Top management responds adequately to needs in the marketplace.
Top management strengthens the company's competitive position.
Company leadership can be trusted to do what they say they will do.
Company leadership is committed to support and work with the sales team.
The company and the sales team are unified, moving in one direction together.
The company and the sales team share a positive, winning attitude.
There is effective communications between the promotion agency and the company.
The promotion agency listens to and understands the sales team's needs.
The company's marketing is aligned in support of the sales network.
There is effective communications between the company's marketing group and the sales
teams in the field.
12. The marketing group listens to and understands sales teams' needs.
13. Employees understand the company's vision and values.

Ranking of the effectiveness of the Brand:
14. The strategic direction of the Brand.
15. The marketing plans for the Brand.
16. The company's investment in brand marketing this year.
17. The company's plan for media advertising.
18. The advertising creative executions.
19. The Brand Slogan advertising for product.
20. The company's planned channel support.
In evaluating the Company's competitive position, are they:
21. Aggressively pursuing market leadership.
22. Flexible in meeting customer's needs.
23. Reactive, following major competitors' actions.
24. Less effective than other competitors.
25. Retailer / Franchisee / Dealer Feedback
26. To what extent will the company give greater emphasis to effective business planning over
the next few years?
a. Great extent
b. Moderate extent
c. Slight extent
d. Not at all

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Organisational Satisfaction – Internal
Employee Surveys at 3 Suisses International Group:

as an Excel file: Part_N.2.2

1. In your opinion, how have customer satisfaction ratings changed at your organisation in the
past year?
a. Improved considerably
b. Improved somewhat
c. Has remained about the same
d. Has declined somewhat
e. Has declined considerably
f. Don't know
2. In your opinion, how important is customer satisfaction within your organisation?
a. It's a high priority
b. It's a mid-level priority
c. It's a low priority
d. Don't know
3. Does your organisation have managers/staff dedicated to customer -satisfaction matters?
a. Yes
b. No
c. Don't know
4. How often does your organisation conduct surveys to evaluate customer satisfaction?
a. Monthly or more often
b. Quarterly
c. Semi-annually
d. Yearly or less often
e. We don't
5. Which one of the following means is used to evaluate customer satisfaction?
a. Questionnaires sent through the mail (in-house efforts)
b. Follow-up telephone calls (in-house efforts)
c. An outside firm has been hired to track customer satisfaction
d. Suggestion boxes placed in facilities
e. Other
6. Has your organisation initiated programs to improve customer satisfaction within the past
year?
a. Yes
b. No
c. Don't know
7. What sector of the industry do you believe needs the most improvement in customer
satisfaction?
8. What is the most compelling reason for your organisation to improve customer satisfaction?
a. Fear of losing customer to competitors
b. Fear of losing revenue
c. Fear of increased consumerism
d. Fear of damage to organisation's reputation
e. Other
9. In your opinion, has customer satisfaction been shown to have a direct effect on your
organisation's bottom line?
a. Yes
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3 Suisses International Group - France
b. No
c. Don't know
10. All employee applicants are screened with a test to determine their desire to serve customers.
11. We offer an unconditional 100% guarantee of satisfaction for everything we sell or service-we make it easy for customers to return anything, without hassle.
12. We trust the judgment of the company’s employees and empower them to resolve customer
complaints on the spot.
13. We believe that the company’s employees and associates are the best ambassadors of the
company’s brand.
14. We measure customer satisfaction several times throughout the year.
15. Every employee and sales associate always greets customers by their names whenever we
speak to them.
16. Our customers can always talk to a "real" person.

Sales Staff Training Evaluation
Employee Surveys at 3 Suisses International Group:

as an Excel file: Part_N.2.3

1. When did you start in your current position?
2. Were you given formal sales training with the company before you started your job?
3. Have you been given continuous sales training?
4. When was the last time you attended a training course?
5. Was the course arranged and conducted in-house, or has it conducted by an outside training
company.

6. Overall, how satisfied were you with your last training course:
a. Extremely Satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Extremely Dissatisfied
7. with the materials you received before the course and their value in preparing you to more
fully participate in the sessions?
8. with the "skill-based" training that emphasises interaction and participation?
9. with applying the business process to a specific product line?
10. with your ability to apply the knowledge and skills from the sessions?
11. with the overall logic and consistency to the series of sessions you attended?
12. that you received at least one specific skill or tool that will enable you to become more
effective in selling company products?
13. with the tools you have been provided to improve the satisfaction rating with your customers?
14. that there was a sufficient amount of time allocated to cover the content in the individual
sessions?

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3 Suisses International Group - France
15. that the information and skill building were relevant to your learning needs?
16. that the sessions changed your behaviour and enhanced your effectiveness in launching new
products?
17. that the information and skill building activities on maintaining and developing accounts were
relevant to your learning needs?
18. that you are incorporating the use of your existing sales analysis tools frequently enough in
calling on your existing accounts?
19. that you are focusing on providing Total Customer Satisfaction with every customer by
soliciting their problems and needs which are not being met?

Store Manager’s View of Brand Perception by Customers
Employee Surveys at 3 Suisses International Group:

as an Excel file: Part_N.2.4

The Brand Test
1. Do you know, from your customers' perspective, what the most distinctive attributes are that
differentiate your brand from competitors?
2. Does your organisation have a brand promise, mission or vision statement?
3. Do you know your customers' perspectives regarding how they view your brand when
compared to your closest competitor?
4. Is your organisation’s leadership responsible for the brand’s success as opposed to the
marketing department?
5. In general, can most employees recite the brand promise, mission, vision statement, or their
key messages?
6. When important decisions need to be made regarding the brand, does someone represent
the customer's viewpoint?
7. Do you place a priority on being perceived by consumers--first and foremost--as a "friend"?
8. How familiar are your customers with the product(s)?
a. Never heard of it
b. I am aware but have never used it
c. Use it only sometimes
d. Use it on a regular basis
9. Which of these listed product Brands have your customers used?
10. How did your customers first hear about the product(s)?
a. TV
b. Radio
c. Magazine
d. Newspaper
e. Internet
f. Friend/relative/associate
g. Haven't heard of it before
h. Not sure

11. Overall, how do your customers rate the quality of the product(s)?
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3 Suisses International Group - France
a.
b.
c.
d.
e.

Poor
Fair
Good
Very Good
Excellent

12. What is it that you personally would most like to change about the product(s)?
13. Would your customers recommend the product(s) to a friend or associate?
a. Definitely Not
b. Probably Not
c. Not sure
d. Probably
e. Definitely
14. When was the last time you personally used the product(s)?
a. Under 1 month
b. 1 to 6 months
c. 6 months to 1 year
d. Not sure

Retailer Survey on their e-Commerce
This survey is designed to obtain a better understanding of the retailer and their e-commerce
operations:

Employee Surveys at 3 Suisses International Group:

as an Excel file: Part_N.2.5

1. What is the main retail category that your brick-and-mortar store(s) operates in?

Retail Brand on the Internet:
2. Compared to your online competitors, how would you rate the strength of your company's
retail brand on the Internet?
3. Overall, compared to other brands in your retail category, how would you rate the level of
awareness of your retail brand name on the Internet?
4. Overall, compared to other brands in your retail category, how would you rate the level of
quality associated with your retail brand name on the Internet?
5. Overall, compared to other brands in your retail category, how would you rate the level of
favourability associated with your retail brand name on the Internet?
6. Overall, rate the level to which your brand is recognised with its retail category on the Internet.
Distribution Operations:
7. Relative to the company’s competitors, products are consistently available in inventory.
8. Compared to the company’s competition, the time between receiving and shipping orders is
shorter.
9. Our company relies on supplier drop shipments to consumers to satisfy online orders.
10. Our company's distribution system can handle the volume of online orders.

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3 Suisses International Group - France
11. Relative to the company’s competition, online orders are filled from the company’s existing
inventory.
12. Compared to the company’s competition, the company’s relies heavily on backorders.
International Markets:
13. Before we started the company’s primary Web site, some people in the company had
experience in international markets.
14. My company knows how to market products in other countries.
15. Few people in my company's primary Web site operations are knowledgeable about foreign
markets.
16. Our e-commerce strategy considers differences between the home market and foreign
markets.

Internal Organisational Culture:
17. In general, the company’s e-commerce top managers favour a strong emphasis on marketing
tried and true products.
18. In the past year, my firm has marketed many new lines of products on the Web site.
19. In dealing with competitors, the company’s e-commerce approach is to respond to actions
which competitors initiate.
20. In dealing with competitors, the company’s e-commerce approach is to pursue an aggressive,
competitive posture.
21. In general, the company’s e-commerce top managers favour low-risk projects (i.e., projects
with certain rates of return).
22. In general, the company’s e-commerce top managers believe that bold, wide-ranging acts are
necessary to achieve the firm's objectives.
23. When confronted with decision-making situations involving uncertainty, the company’s ecommerce approach is to adopt a cautious, "wait-and-see" posture.
24. Satisfying the company’s customers is the company’s most important business objective.
25. We constantly communicate the company’s commitment to serving customer needs.
26. We share information about the company’s successful and unsuccessful experiences across
all business functions.
27. Our strategy for competitive advantage is based on the company’s understanding of
customers' needs.
28. We measure customer satisfaction infrequently.
29. We have regular performance measures of customer service.
30. Our competitors are more customer focused than we are.
31. I believe that the company’s business exists primarily to serve customers.
32. Data on customer satisfaction are disseminated at all levels in the company’s e-commerce
unit on a regular basis.

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3 Suisses International Group - France
Channel Issues:
33. We find it difficult to change established procedures to cater to the needs of e-commerce
customers.
34. We can easily change the manner in which we carry out tasks to fit the needs of e-commerce.
35. This firm will not aggressively pursue an e-commerce strategy that causes existing
investments to lose value.
36. We are willing to sacrifice sales from existing channels in order to improve sales on the
company’s primary Web site.
Supplier Relations:
37. There is open communication between the company’s e-commerce business and the
company’s most important supplier.
38. Our e-commerce business and the company’s most important supplier share common
objectives.
39. Our most important supplier makes it difficult for the company’s e-commerce business to do
its job.
40. Our most important supplier does not like many of the things the company’s e-commerce
business does.
41. The products we get from the company’s most important supplier can also be purchased by
end-users on the company’s most important supplier's Web site.
42. Our most important supplier does not offer products to end-users on their Web site.
43. There is an overlap in products offered to end-users on the company’s Web site and the
company’s most important supplier's Web site.
Market:
44. Customers' preferences change frequently.
45. Our customers rarely request new products.
46. Customer needs are becoming more predictable.
47. Customer loyalty is decreasing.
48. On the Internet, the rate of firm failure is high in this retail category.

For the most recent annual fiscal period for your primary Web site:
49. Approximate revenue growth (%)
50. Approximate total online sales (in US $)
51. Percentage of Web site customers that were repeat purchasers (%)
52. Advertising dollars as a percentage of sales dedicated to e-commerce (%)
53. Percentage of sales generated from affiliate program (%)
54. Approximate advertising budget (in US $)
55. Percentage of sales generated from outside the headquarters' country (%)
56. Indicate the extent to which your company's Web site has achieved the following outcomes
relative to its original objectives for the most recent annual fiscal period.
a. objectives Met
b. objectives Well above
c. objectives Well below
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3 Suisses International Group - France

57. Total sales
58. Profitability
59. Market share
60. Sales growth
61. Number of new customers
62. Customer service

General inquiries into your e-commerce operations, focussed on your company's primary e-commerce
Web site.
63. Indicate when your company entered the online market, relative to the competition, in the
online retail category you specified at the beginning of the survey.
64. Indicate your current job title.
65. How many Web sites does your company currently operate?
66. How many of the Web sites you specified in question #1 are e-commerce sites (i.e., allow
online purchases)?
67. What is the main retail category that your Web site operates in?

For your company's primary e-commerce Web site:
68. How many people are employed for your Web site operations?
69. Where is your Web site headquartered?

Brick-and-Mortar Operations:
Regarding your brick-and-mortar operations (i.e., retail store(s) operating in the physical
marketplace):
70. Does your company operate one or more brick-and-mortar retail stores?

Brick-and-Mortar Retail Brand:
71. Compared to your brick-and-mortar competitors, how would you rate the strength of your
company's retail brand in the physical marketplace?
72. Overall, compared to other brands in your retail category, how would you rate the level of
awareness of your retail brand name in the physical marketplace?
73. Overall, compared to other brands in your retail category, how would you rate the level of
quality associated with your retail brand name in the physical marketplace?
74. Overall, compared to other brands in your retail category, how would you rate the level of
favourability associated with your retail brand name in the physical marketplace?
75. Overall, rate the level to which your brand is recognised with its retail category in the physical
marketplace?

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3 Suisses International Group - France
Affiliate / Partner Program:
An affiliate or partner is defined as a Web site that is linked to the site and receives a commission,
fee, or other benefit for sales generated from the link:
76. Does your primary Web site have an affiliate program?
77. How many affiliates are currently enrolled in your affiliate program?
78. How long has your affiliate program been in operation?

79. How many marketing agreements does your company have with search engines and portals
for its primary e-commerce Web site?
a. 1-3
b. 4-9
c. 10-19
d. 20-49
e. 50 or more
f. Do not know
80. On average, how many unique visitors does the primary e-commerce Web site receive each
month?
81. Is your primary e-commerce Web site the result of a joint venture or partnership with another
company?
82. Is your primary e-commerce Web site maintained by an outside firm?

Company Web Building Activities
Corporate demographics and investigation of web building expenditures and activities.
Employee Surveys at 3 Suisses International Group:

as an Excel file: Part_N.2.6

1. Which of the following best describes the decision makers’ position within the company?
a. Owner
b. Chief Executive
c. Partner
d. Senior executive in charge of advertising, marketing, brand.
e. Executive in charge of advertising, marketing, brand.
f. Professional consultant
g. Finance/accounting/purchasing
h. Marketing
i. Office manager
j. Outlet / Site manager
k. Administrative assistant
l. Technical or IT professional
m. Sales professional
n. Other
2. In which City, State / Country is your office located?
3. How many employees work at this location?
a. 1 to 7
b. 8 to 19
c. 20 to 49
d. 50 to 99
e. 100 or more
f. Don't know/Not sure

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3 Suisses International Group - France
4. What are the main product categories sold by your company?
5. Select the range that is closest to the approximate annual sales for your company, at this
location:
a. Less than 100,000
b. $100,000 to $499,999
c. $500,000 to $999,999
d. $1 million to $5 million
e. $5 million or greater
f. Don't know
6. What was your involvement is in the website development and maintenance process?
a. Determine need to purchase
b. Evaluate various products/vendors
c. Authorise/approve purchase
d. Determine where to purchase
e. Place orders
f. Other
7. Establish the domain
a. Determine need to purchase
b. Evaluate various products/vendors
c. Authorise/approve purchase
d. Determine where to purchase
e. Place orders
f. Other
8. Has your company purchased any of these service in the past 6 months:
a. We did not purchase
b. Developing a Website
c. Registering a domain name
d. Web Hosting Services
9. How much would you estimate your company spent in the past 6 months on the following web
related activities (at this location)?
a. Did not purchase
b. Don't Know
c. $1,500 to $5,000
d. $5,000 to $10,000
e. $10,000 to $25,000
f. $25,000 or more
g. For Developing a Website
h. For Web Hosting Services & Maintenance
10. Does your company plans to purchase this service in the next 6 months:
a. Developing a new Website
b. Registering a new domain name
c. Web Hosting Services
11. Which of the following best describes your company's website?
a. Informational/advertising site that describes the business or displays products
b. E-commerce site that has credit card processing ability
c. Fully integrated site with credit card and order processing capability
d. No website but plan to have one
e. No website and no plans in the near future to develop one.
f. Other

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3 Suisses International Group - France
12. How satisfied are you with the overall quality, look, feel, and functionality of your website?
a. Very satisfied
b. Somewhat satisfied
c. Neutral
d. Somewhat dissatisfied
e. Very dissatisfied
13. Which one of the following business sectors best describes your core business?
a. Communications/transportation/utilities
b. Banking/finance/insurance/real estate/legal
c. Retail
d. Value added information service provider
e. Government
f. Data processing/computer
g. Education
h. Business services
i. Other
14. What best describes your role in your organisation?
a. Owner, partner, principal
b. CFO / CIO / CTO
c. Director/manager
d. VP
e. Professional
f. Other corporate management
g. Project manager
h. Customer service
i. Other

272

SECTION 2
Competitive Environment
3 Suisses International Group

3 Suisses International Group - France

Competitive Environment

%

%

%

%

%

%

%

%

%

Other spending &
Investments

Luxury Goods

Leisure Goods

Footwear

Medical

Health & Beauty

Home
Furnishings

Durables

Clothing

Food & Drink

Monthly Consumer Spending

%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
Disposable Income and Discretionary Spending (together with the consumers’ own assessment of future trends)
is measured during Consumer Surveys when consumers were asked specific psychometric questions which
tested and cross-checked the issues mentioned here. The data above is derived from statistically accurate social
/ income group, and full age spectrum, surveys.

Whereas in developed countries the Value Proposition of many brands have suffered in recent years
for a variety of reasons, in many developing country markets the Value Proposition of many branded
products have survived intact. Many consumer durables have seen their perceived worth diminished
during the last decade or so in North America and Europe. This is due to both the popularization of
the brands which make them less exclusive, and because they are perceived to be less costly to
manufacture and less durable. Some formerly high end brands have suffered for these reasons.
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3 Suisses International Group - France

There are psychological reasons which currently make developing country markets more durable
1
than, for example, the United Sates or the United Kingdom markets and that is the general neurotic
(and sometimes psychotic) psychology of fashion and luxury goods consumers in some countries.
The increasingly neurotic nature of some of these customer bases is tending to divert expenditure
away from fashion into other neurotic activities.
In, for example the United Sates and the United Kingdom, neurotic behaviour patterns have
increasingly led sections of the population to succumb to eating disorders (which has led to obesity)
and impulsive disorders like drinking alcohol to excess. This has caused a rapid rise in over-weight
people (over 50% of the adult female population in the United Sates and the United Kingdom are
over-weight) and clinical obesity (over 35% of the adult female population in the United Sates and
over 25% of the adult female population in the United Kingdom are clinical obese). This means that
these individuals find it increasingly difficult to interact and interface with fashion products and as a
consequence they do not perceive themselves to be capable of engaging with much of the fashion
industry.
Neuroses play an important part in the purchasing behaviours of consumers, especially with fashion
and luxury goods, and these neuroses represent both opportunities and threats to fashion product
manufacturers and retailers.
The good news for fashion product manufacturers and retailers is that a neurotic customer base
makes it relatively easier for retailers to loosen the purses of buyers; the bad news is that a neurotic
customer base has a short attention span and is prone to be irrationally diverted to other neurotic
activity.

1

The terms neurosis and psychosis are used in their clinical context. The symptoms as described as follows:-

There are many forms of neurosis: obsessive-compulsive disorder, anxiety neurosis, hysteria, and a very wide variety of
phobias as well as obsessions. Effects of neurosis can involve anxiety, sadness or depression, anger, irritability, mental
confusion, low sense of self-worth, et cetera; behavioural symptoms such as phobic avoidance, vigilance, impulsive and
compulsive acts, lethargy, et cetera; cognitive problems such as unpleasant or disturbing thoughts, repetition of thoughts and
obsession, habitual fantasizing, negativity and cynicism, etc. Interpersonally, neurosis involves dependency, perfectionism,
feelings of isolation, socio-culturally behaviours, et cetera.
Individuals who score high on neuroticism are more likely than the average to experience such feelings as anxiety, anger, envy,
guilt, and depressed mood. They respond more poorly to environmental stress, and are more likely to interpret ordinary
situations as threatening, and minor frustrations as hopelessly difficult. They are often self-conscious and shy, and they may
have trouble controlling urges and delaying gratification. Neuroticism is a risk factor for the "internalizing" mental disorders such
as phobia, depression, panic disorder, and other anxiety disorders (traditionally called neuroses). Research has found that a
wide range of clinical mental disorders are associated with elevated levels of neuroticism compared to levels in the general
population. Disorders associated with elevated neuroticism include mood disorders, such as depression and bipolar disorder,
anxiety disorders, eating disorders, schizoaffective disorder, dissociative identity disorder, and hypochondriasis. Mood
disorders tend to have a much larger association with neuroticism than these other disorders. The remaining personality
disorders had either modest positive or non-significant (in the case of narcissistic and histrionic) associations with neuroticism.
Research has consistently found that on average, women score moderately higher than men on neuroticism. A study
examining gender differences in big five personality traits in 55 nations found that across nations the most pronounced gender
difference in personality was in neuroticism. In 49 of the 55 nations studied, women scored significantly higher in neuroticism
than men. In no country did men report significantly higher neuroticism than women, although in Botswana and Indonesia, men
were slightly higher than women. Gender differences in neuroticism within nations ranged from very small to quite large. The
differences were moderate to large in 17 countries, and small to moderate in 29 countries. In only seven countries Bangladesh, Tanzania, Ethiopia, Greece, Japan, Botswana, and Indonesia - were they negligible. African and Asian/South
Asian world regions tended to have smaller sex differences in personality overall than did western world regions (Europe, and
North and South America). Differences in the magnitude of sex differences between world regions were due to differences
between men in these respective regions. That is, men in western world regions were lower on neuroticism compared to men in
African and Asian/South Asian world regions. Women, on the other hand tended not to differ in neuroticism across regions.
Gender differences were also positively associated with measures of human development, that is, a long and healthy life,
access to knowledge and education, and decent standards of living. Sex differences became more pronounced in countries
with higher levels of human development. It is speculated that resource poor environments (that is, countries with low levels of
development) may inhibit the development of gender differences, whereas resource rich environments facilitate them. This may
be because males require more resources than females in order to reach their full developmental potential. Evolutionary
theories suggest that gender differences in neuroticism developed because men have evolved to be more risk taking whereas
women have evolved to be more cautious and hence more anxious and avoidant when faced with danger.

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3 Suisses International Group - France

Market Opportunity
Analysis of the development of the retail trade and its life cycle
The choice of route to the market has opportunities and pitfalls, product and brand superiority is an
obvious competitive advantage which can be re-enforced through firm control of the retail channels.
However products and brands superiority is a medium and long-term strategy which can be unstable
and may be subject to short-term set-backs. Clearly strong brands with real product benefits have the
best competitive advantage, and for this reason the long-lived brands have consistently invested in
brand equity.
The low transaction cost routes to the market have clear benefits, but may suffer from sustainability
problems as the concept adopted is easy and inexpensive to replicate by competitors. The majority of
foreign brands operating in any one country tend to choose the Medium Added Value and Medium
Transaction Costs routes to the market as these are tested and known. However the use of novel and
innovative channels of distribution are being increasingly explored by the brand leaders. Newcomers
are less inhibited (than the entrenched brands) in trying and testing new distribution channels and
often new brands can achieve improved market penetration through imaginative distribution policies
and tactics.
The task of any brand seeking to enter these markets is to achieve an alignment with the distribution
and a synergy with consumer buying behaviours and expectations.
 Analyse consumer buying behaviours
 Evaluate consumer ‘Shopping Experience’ criteria
 Identify consumer channel preferences
 Correlate consumer channel usage with purchasing criteria
 Provide flexible and adaptable retail channel options
 Observer changes in consumer buying behaviours
 Adapt and respond to consumer buying behaviours

The above considerations are of course an analogy of the life cycle of particular channels. Failure to
respond and adapt in the above manner will inevitably result in the premature shortening of the life
cycle of any particular channel.
The purchasing criteria of consumers will be recognisable, and have been specified in other sections
of this study. The basic criteria are inevitably the same in most of the countries: Price
 Availability
 Brand
 Quality
 Shopping experience
 Store Personnel
 Store appeal
 Promotional actions
 Et cetera

How these criteria then interact with particular channels is the important issue; as is how these criteria
and the individual channel can be correlated and manipulated to maximise Added Value and minimise
Transaction Costs.

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Markets

eCommerce

Telemarketing

Social Network
Sales Tactics

Consumer Party
Plan

Direct Selling to
Independent
Retailers

Multi-Brand Retail
Stores

Selling via
Exclusive
Distributors

Retail Franchising

National Brand
Licensing

Owned Exclusive
Brand Stores

Added Value and Transaction Costs across the Supply Chain

AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

AV = Added Value : TC = Transaction Costs : H = High : M = Medium : L = Low

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3 Suisses International Group - France

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

Retailers per 10,000 inhabitants

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

278

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

Store Revenue per Square Meter per annum (US$)

3 Suisses International Group - France

2019

2020

2019

2020

2018

2017

2016

2015

2014

2013

2012

2011

2010

Average Revenue per Store per annum (‘000)

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

279

2018

2017

2016

2015

2014

2013

2012

2011

2010

Average Store Sales Area (Square Meters)

3 Suisses International Group - France

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

280

Retail – Internet &
Others

%

Retailers - Joint
Ventures

%

Retailer - Foreign
controlled

%

Retailer - Domestic
owned & controlled

Wholesale - Joint
Ventures

%

Wholesale - Other

Wholesale - Foreign
controlled

Markets

Wholesale - Domestic
owned & controlled

Existing Distribution Channels

%

%

%

%

3 Suisses International Group - France

New Distribution developments
Multiple-Channel Development
Developing a Multi-Channel approach to the consumer is often very effective and allows:

Efficient access to each market segment

Increased market coverage

Lower channel cost

Opportunities for targeted and customised selling

More precise control of channels

The introduction of Complementary Channels, each of which targets different product or
consumer segments.

Competitive Channels where more than one channels competes for the same consumer
segment. This permits dynamic pricing tactics, promotional opportunities and better inventory
management mechanisms.

Multi-Marketing & Social Networking
Developing a Multi-Marketing & Social Networking approach to the consumer can help access niche
markets:

Direct selling an Party Plan to access specific demographics (Married women, Older women,
women in rural locations)

Telemarketing which can access Housewives and women at their work place.

Social Network integration with mobile applications to promote specific events and ‘shopping
experiences’ for the younger demographics.

e-Commerce & M-Commerce
The effective application of e-Commerce and then Mobile Applications will increasing become very
important in the marketing mix of all brands.

281

3 Suisses International Group - France

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

The data above is derived from statistically accurate social / income group, and full age spectrum,
surveys.

282

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

Online Shopping – Purchases per month

3 Suisses International Group - France

Distribution Policies & Strategies

Exclusive Distribution advantages include:

Multi-channel Distribution

Intensive Distribution to independent
retailers

Direct supply to Selected Retailers

Intensive Distribution to provide
convenience to independent retailers

Selected Wholesale Distribution

Non-Exclusive Distributor

Exclusive Distributor

Distribution Strategies for consideration










Maximised control over service level
Control of costs
Enhanced brand equity
Enhanced margins
Control of tied retailers
Improved independent retailer loyalty
Improved ERP and inventory control
Improved merchandising controls
Improved forecasting and market
reaction time
Market power and influence

Exclusive Distribution disadvantages:

Risk in reliance on an exclusive
distribution system
Mainly geared to big brand, high price,
high margin and low volume products

Trade Area #1
Trade Area #2

Intensive Distribution advantages include:

Trade Area #3
Trade Area #4

Potentially increased retailer sales
Wider consumer recognition
Enhanced product exposure

Trade Area #5
Trade Area #6

Intensive Distribution disadvantages:

Trade Area #7
Trade Area #8

Trade Area #9

Applicable to low price, low-margin
high street brands
Products require constant refreshing
and high stock turn
Difficulty controlling brand image

Trade Area #10
Selective Distribution advantages:

Trade Area #11

Trade Area #12

Trade Area #13



Trade Area #14
Trade Area #15

Better market coverage than exclusive
distribution
More control and less cost than
intensive distribution
Concentration on productive outlets
Carry full product line
Provide superior services

Selective Distribution disadvantages:
The above distribution strategies are used by the current
players in each of the country markets. Each distribution
method needs to be analysed in depth to understand the
implications.

283

May not cover the market adequately
Potential errors in distributor selection

284

Symbiotic marketing

Definitions of corporate, administrative and contractual
VMS
Horizontal Marketing System

Use of innovative marketing channels

Programmed network systems

Professional Management

Firm central coordination

Adaption of Distribution
Strategies

ERP methodology

Vertical Marketing System (VMS)

More attention to the Marketing Mix

Increase volume level of sales

More attention to Brand Equity

Improvement of ‘Store Experience’

Better selection of retail outlets & locations

More attention to Competitor’s product offerings

Better attention to Customer expectations

Better knowledge of Consumer buying habits

3 Suisses International Group - France

Channel Control Strategies

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

The Trading Areas marked with an X indicate the need for the distribution strategies to be analysed in
depth to understand the implications.

3 Suisses International Group - France

Online

Catalogue

Mail Order

Independent Retailers

Regional Retailers

National Retailers

Agents & Jobbers

Independent Wholesalers

Regional Wholesalers

National Wholesalers

Purchasing power

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

S = Substantial : M = Moderate : L = Limited : N = None

Purchasing power is defined by the relative discounts and terms of payment achieved that each level
of the supply chain can achieve when negotiating with their suppliers. In general the distribution and
retail buyers can usually negotiate more advantageous terms with suppliers from Asia than with
suppliers from North America or Europe.

285

3 Suisses International Group - France

Retail Trade Life Cycle and Developments

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

S = Substantial : M = Moderate : L = Limited : N = None

286

Online Brands

Catalogue Brands

Mail Order Brands

Unbranded & Generic

Regional Brands

Retailers’ Own Brands

Discount Brands

Niche Brands

National Brands

Global Brands

Brand Development in the Retail Trade

3 Suisses International Group - France

Future Prospects and Development of the Retail Trade
The future of the Retail Trade in shown in the market research data for France and the various
markets covered.

City and Town analysis
The Research focuses on the Retailers in the Major Cities in the country (France). A full list of the
cities and towns in the database can be found here:

http://www.dg-di.eu/BASE_FOLDERS/World_Cities/FR.html

The overall Market Data covers each of the France major towns and cities can be found here:
Market Data Major Towns

Detailed Market Data covers each of the France major towns and cities can be found here:
Detailed Market Data Major Towns

287

3 Suisses International Group - France

Wholesaler, Trade Buyer, Retailer and Store Performance Surveys
Products
Product Group #1
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #8
Product Group #9
Product Group #10
Product Group #11
Product Group #12
Product Group #13
Product Group #14
Product Group #15

Operations
1.

Brand Management

2.

Product Management

3.

Marketing & Selling Activity

4.

Store Presentation & Merchandising

5.

Product Offering Specifications & Characteristics

6.

Product Quality Control

7.

Design Research & Development

8.

Customer Handling

9.

Product Sourcing & Control

10.

Financial Controls

11.

Staff Training / Control & Relations

12.

Product Throughput Capacity & Control

13.

Supply System Control & Development

14.

Distribution Control

15.

Product Handling Systems & IT

288

3 Suisses International Group - France

Buyers &
Consumers
1. Wholesalers
2. Trade Buyers
3. Retailers
4. Consumers
5. Consumers Age: <19
6. Consumers Age: 19-24
7. Consumers Age: 25-34
8. Consumers Age: 35-44
9. Consumers Age: 55-54
10. Consumers Age: 55-64
11. Consumers Age: 65+
12. Consumers Social Group: AB
13. Consumers Social Group: C1
14. Consumers Social Group: C2
15. Consumers Social Group: DE

Trading Area
1
2

France
Île-de-France

3

Rhône-Alpes

4

Provence-Alpes-Côte-d'Azur

5

Nord-Pas-de-Calais

6

Pays-de-la-Loire

7

Aquitaine

8

Midi-Pyrénées

9

Nord

10

Languedoc-Roussillon

11

Centre

12

Lorraine

13

Paris

14

Bouches-du-Rhône

15

Picardie

289

3 Suisses International Group - France

Competitors
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

These surveys cover the Markets, Products, Competitors, Operations and Product Flows in terms of
the Suppliers, Distributors, Retailers, and End Users. Please read the Definition & Notes first.

http://www.dg-di.eu/BASE_FOLDERS/MarketResearch/MR_SURVEY_DEFI.htm

Distribution Channel Surveys
Surveys of Supply Chain & Distribution Channels Members:
Distribution Channel Surveys
Buyers & Consumers

Distribution Channel Surveys Decision Makers

Competitors

Distribution Channel Surveys on Competitors

Operations

Distribution Channel Surveys on Operations

Products
Trading Area

Distribution Channel Surveys on Products
Distribution Channel Surveys for the Trading Area

290

3 Suisses International Group - France

Decision Makers Surveys
Surveys of Trade and Consumer Decision Makers:
Decision Makers Surveys
Buyers & Consumers

Decision Makers Surveys

Competitors

Decision Makers Surveys for Competitors

Operations

Decision Makers Surveys for Operations

Products
Trading Area

Decision Makers Surveys for Products
Decision Makers Surveys for Trading Area

Industry Performance
Surveys of Industry & Retailer Performance:
Industry Performance
Buyers & Consumers

Industry & Retailer Performance Surveys Decision Makers

Competitors

Industry & Retailer Performance Surveys on Competitors

Operations

Industry & Retailer Performance Surveys on Operations

Products
Trading Area

Industry & Retailer Performance Surveys on Products
Industry & Retailer Performance Surveys for the Trading Area

The surveys are best viewed as a graphic representation and users should use the normal facilities in
Excel to render the Excel spreadsheets as a graphic.
To understand the format and structure of these Surveys please consult the following schematic and
Survey Definitions

291

3 Suisses International Group - France

Value by Product Sectors
France Market Values in US$ - Historic from 1997. Forecast to 2028

Market Values at Producer Prices

France Market in US$ - Historic from 1997. Forecast to 2028

Market Sectors at Producer Prices

City / Town Market Value
The overall Market Data covers each of the France major towns and cities can be found here:
Market Data Major Towns

Detailed Market Data covers each of the France major towns and cities can be found here:
Detailed Market Data Major Towns

292

3 Suisses International Group - France

Consumer Attitudes
Products
Product Group #1
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #8
Product Group #9
Product Group #10
Product Group #11
Product Group #12
Product Group #13
Product Group #14
Product Group #15

Operations
1.

Brand Management

2.

Product Management

3.

Marketing & Selling Activity

4.

Store Presentation & Merchandising

5.

Product Offering Specifications & Characteristics

6.

Product Quality Control

7.

Design Research & Development

8.

Customer Handling

9.

Product Sourcing & Control

10.

Financial Controls

11.

Staff Training / Control & Relations

12.

Product Throughput Capacity & Control

13.

Supply System Control & Development

14.

Distribution Control

15.

Product Handling Systems & IT

293

3 Suisses International Group - France

Buyers &
Consumers
1. Wholesalers
2. Trade Buyers
3. Retailers
4. Consumers
5. Consumers Age: <19
6. Consumers Age: 19-24
7. Consumers Age: 25-34
8. Consumers Age: 35-44
9. Consumers Age: 55-54
10. Consumers Age: 55-64
11. Consumers Age: 65+
12. Consumers Social Group: AB
13. Consumers Social Group: C1
14. Consumers Social Group: C2
15. Consumers Social Group: DE

Trading Area
1
2

France
Île-de-France

3

Rhône-Alpes

4

Provence-Alpes-Côte-d'Azur

5

Nord-Pas-de-Calais

6

Pays-de-la-Loire

7

Aquitaine

8

Midi-Pyrénées

9

Nord

10

Languedoc-Roussillon

11

Centre

12

Lorraine

13

Paris

14

Bouches-du-Rhône

15

Picardie

294

3 Suisses International Group - France

Competitors
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

These surveys cover the Markets, Products, Competitors, Operations and Product Flows in terms of
the Suppliers, Distributors, Retailers, and End Users. Please read the Definition & Notes first.

Consumer Surveys
Surveys of Consumers and Buyers:
Consumer Surveys
Buyers & Consumers

Consumer Surveys Decision Makers

Competitors

Consumer Surveys on Competitors

Operations

Consumer Surveys on Operations

Products
Trading Area

Consumer Surveys on Products
Consumer Surveys for the Trading Area

295

3 Suisses International Group - France

Industry Performance
Surveys of Industry & Retailer Performance:
Industry Performance
Buyers & Consumers

Industry & Retailer Performance Surveys Decision Makers

Competitors

Industry & Retailer Performance Surveys on Competitors

Operations

Industry & Retailer Performance Surveys on Operations

Products
Trading Area

Industry & Retailer Performance Surveys on Products
Industry & Retailer Performance Surveys for the Trading Area

The surveys are best viewed as a graphic representation and users should use the normal facilities in
Excel to render the Excel spreadsheets as a graphic.
To understand the format and structure of these Surveys please consult the following schematic and
Survey Definitions

296

3 Suisses International Group - France

Competitive Factors
Retail Brands

Retailers
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

LB = National Brand : RB = Regional Brand : GHS = Global High Street : GLux = Global Luxury
G/DS = Generic brands

297

% Market Share

Selling Space
SqM

Revenues

Stores

Competitive
Stance

Brand Research
Data Available

Type

The Survey results in this report cover the following Retail Brands in France:-

3 Suisses International Group - France

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

Retailers

Trade Area #1

Brands Price Differentials

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The Price Differentials shown here are Purchasing Power Parity weighted.

How to interpret this data
Price differentials do not entirely depend on the actual monetary price of a product, but more on the
Purchasing Power Parity. This means that the actual monetary cost of the product in any particular
country has to be weighted with the average wage levels in that country to thereby produce the
average purchasing power parity. The data shows that in order to purchase a particular product a
consumer in low wage rate country will have to expend a greater proportion of his purchasing power
than a consumer in a high wage rate country. Another way to interpret the data is to consider that
there is a demographic shift whereby in lower wage rate countries the purchasing demographic of any
particular product move further up the social scale when compared with high wage rate countries. In
addition in lower wage rate countries the products will take longer to achieve the same level of market
penetration as is found in high wage rate countries. As an extension of this one can see the relative
price differential of the brands when sold in other countries.

298

3 Suisses International Group - France

Product Group #1
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #8
Product Group #9
Product Group #10
Product Group #11
Product Group #12
Product Group #13
Product Group #14
Product Group #15

The Price Differentials shown here are Purchasing Power Parity weighted.

299

Trade Area #15

Trade Area #14

Trade Area #13

Trade Area #12

Trade Area #11

Trade Area #10

Trade Area #9

Trade Area #8

Trade Area #7

Trade Area #6

Trade Area #5

Trade Area #4

Trade Area #3

Groups

Trade Area #2

Product

Trade Area #1

Product Price Differentials

3 Suisses International Group - France

Product Value Positioning

Retailers
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

Ranking:

Upscale 1-2  Mainstream 3-6  Economy 7-9

300

Product Group #15

Product Group #14

Product Group #13

Product Group #12

Product Group #11

Product Group #10

Product Group #9

Product Group #8

Product Group #7

Product Group #6

Product Group #5

Product Group #4

Product Group #3

Product Group #2

Product Group #1

Product Groups

3 Suisses International Group - France

Product Pricing

Retailers

Price
Discounting

Low Price

Market Median
Price

High Price

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

301

3 Suisses International Group - France

Product Quality

Retailers

Basic Quality

Median Quality

High Quality

Premium
Quality

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

302

3 Suisses International Group - France

Product Specifications

Retailers

Low Product
Specification

Undifferentiated
Product

Differentiated

High
Specification

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

303

3 Suisses International Group - France

Product Target Audiences

Retailers

No Target
Audience

Some Targeting

Highly Targeted

Specific
Audience

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

304

3 Suisses International Group - France

Product Volumes

Retailers

High Volume

Median
Volumes

Low Volume

Restricted
Volume

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

305

3 Suisses International Group - France

Product Utility

Retailers

Necessity
Product

Common
Product

Discretionary
Product

Luxury Product

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

306

3 Suisses International Group - France

Product Maintenance

Retailers

Frequent
Cleaning

Average
Cleaning

Infrequent
Cleaning

Specialist
Cleaning

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

307

3 Suisses International Group - France

Product Merchandising

Retailers

Simple
Merchandising

Display
Merchandising

Featured

Complex
Proposal

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

308

3 Suisses International Group - France

Product Advertising

Basic
Advertising

Feature
Advertising

Retailers
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

309

Target
Advertising

Complex
Advertising

3 Suisses International Group - France

Brand Positioning Tactics & Strategy
Current Tactical Brand Model

Retailers

Price

Product

Place

Promotion

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

310

3 Suisses International Group - France

Strategic Brand Objectives

Retailers

Brand name

Product Design

Shopping
experience

Advertising

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

311

3 Suisses International Group - France

Functional Positioning - Symbolic Positioning - Experiential Positioning

Retailers

Functional

Symbolic

Experiential

Unknown

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys..

312

3 Suisses International Group - France

Customer Value Propositioning

Retailers

Benefits

Differentiation

Resonance

Experience

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

313

3 Suisses International Group - France

Value Concept & Positioning

Retailers

Average Value

Good Value

Excellent Value

Unspecified

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

314

3 Suisses International Group - France

Brand Differentiation Propositions

Retailers

Me Too

Some
difference

Different

Unique

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

315

3 Suisses International Group - France

Key Selling Messages

Retailers

Value

Product

Brand

Status

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from trade surveys.

316

3 Suisses International Group - France

Communications Tactics

Retailers

Sales
promotions

Public relations

General
advertising

Direct
marketing

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from trade surveys.

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Advertising Tactics

Retailers

Price

Product

Inclusiveness

Exclusivity

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from trade surveys.

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3 Suisses International Group - France

Media & PR Tactics

Retailers

Brochures &
print

Press releases

Audio-Video

Press Kits

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from trade surveys.

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3 Suisses International Group - France

Web & Online Tactics

Retailers

Very visible

Visible

Not really
visible

Unspecified

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

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Point of Sale Tactics

Retailers

Average POS

Good POS

Excellent POS

Unspecified

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

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Merchandising

Retailers

Average
Merchandising

Good
Merchandising

Excellent
Merchandising

Unspecified

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

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Product Display

Retailers

Average
Product Display

Good Product
Display

Excellent
Product Display

Unspecified

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

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Market Entry Management Factors
Distribution
Brands differentiate themselves in terms of price, quality and design. For the purposes of the rest of
this section branded products will be categorised as:
 High priced brands: These global brands are committed to luxury, style, and quality.

Middle range brands: These brands bring trends to the high street; they are design-led and
are sold at high street prices.

Low cost brands: Low cost brands offer contemporary designs and current trends at low
prices, especially distributed in department stores and supermarkets.

Retail Level
There are three types of retailers: Vertically-integrated Retailers; Independent Retailers; and
Department Stores.
 Vertically-integrated retailers operate wholly-owned retail outlets and sell only the brands
selected by that company. Vertically-integrated retailers tend to have an international
presence. Many high range designer brands, middle range high street brands and low cost
brands are vertically integrated. They are located on main streets and in shopping centres; in
addition high range brands and middle range high street brands sell their ranges in
department stores.

Independent retailers sell a selection of brands and are independent of the brands they sell.
Independent retailers can take many forms. Their stores tend to sell middle range high street
brands, however some may sell high range designer brands. Independent retailers tend to
specialise in one type of product category, and generally provide their customers with more
choice and variety for those categories. Independent retailers may own and operate a chain
of stores under a common fascia and are typically known as “branded resellers”. Other
independent retailers may be small local boutiques. Independent stores are mainly located on
the main shopping street in towns and cities and in shopping centres.

Department stores are quite different. They sell a wide variety of products from clothing to
home-wares, and electrical appliances to cosmetics. In terms of branded products,
department stores tend to sell high range brands and/or middle range high street brands; low
cost brands are rarely sold in department stores. Department stores are generally located in
central locations in cities and large towns.
A department store is a hybrid retailer. As detailed in subsequent paragraphs, branded
products are available in their stores from vertically-integrated companies locating in the store
through a “concession” arrangement and/or is “own-bought” and resold by the stores
themselves. A few department stores also sell own-brand labels.
Concession arrangements occur where vertically-integrated branded companies have an
agreement to sell in a dedicated area of a department store. Many of these are the same
brands sold in high street vertically-integrated stores. In effect, the department store is the
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3 Suisses International Group - France
concessionaire’s landlord and earns a rent or commission from the concession. Therefore,
the department store has less risk as it does not own the concessionaire’s stock, i.e., it is not
a reseller. However, a department store’s commission is affected by fluctuations in sales. The
actual stock and the profit from sales, excluding the commission, belong to the “concession”,
i.e., the vertically-integrated brand.
Own-bought products are branded items purchased by the department store from the
manufacturer or its agent or distributor for resale. For own-bought products the department
store bears the risk. Own-bought retailing is therefore similar to the arrangement described for
independent stores, where a selection of brands is sold in the same store; the difference
being that independent stores typically specialise in one type of product category, whereas
department stores sell different types of product categories.
Although products may be retailed through department stores under different arrangements, it
is not obvious to the consumer which brands operate under each arrangement, i.e., whether
the brand is sold under a concession or own-bought arrangement, as their presentation is
seamless. The percentage of branded products that is own-bought versus concession varies
across department stores.

Brand Competition
At the retail level brand competition tends to differ by type of retailer. Vertically-integrated international
brands compete at a high level by promoting their branded product internationally.
Independent retailers and department stores compete through the range of brands and products they
stock in their stores, and by building store image. In order to get the brands they want into their store,
department stores further compete on the commission rate, location in store and merchandising.
Branded reseller chains, for example, sports retailers, also compete on store reputation through store
advertising and promotions etc. Department stores compete on store image by creating a “shopping
experience” and through promotional activity to attract footfall.
The past decade has seen a big increase in the number of brands available, especially in terms of the
location density of the global brands.

Value
Retailers within the same product categories compete on value, i.e., the combination of price, design
and quality. Retail competition tends to start with competition among different brands within the same
range, be it high range, middle range or low cost. Once a brand positions/markets itself within one of
the product categories, it competes mostly with other brands within the same range by pricing at a
level that reflects the quality, design and brand image that has been created.
In terms of pricing, vertically-integrated retailers operate a system of national pricing and thus at a
retail level compete more on quality of service, shop fit etc. Vertically-integrated brands are
increasingly also offering on-line shopping.
Low cost brands primarily compete on price by offering contemporary designs at low prices. The
ultimate goal of these brands is to set their prices low. Consumers are looking for value for money
when purchasing these brands.

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Location
Location is of critical importance in retail. In most countries, despite the growing number of out of town
shopping centres, the main street is still a major draw for retailers. Thus, there is demand and
competition among all retailers for prime main street locations.
Vertically-integrated international brands sold throughout the world and the outlets of these brands
are similar in design and layout. Independent retailers and department stores can differ somewhat in
different areas.
Although the international brands enjoy economies of scale, local conditions in each country are often
quite different, and local retailers can often profit by being more orientated to local markets. Retailers
operating in some countries tend to have larger selling areas and therefore can offer a broader
product range.

Supply Chain
The supply chain and, in particular, distribution for each type of retailer and supplier, tends to vary.
Vertically-integrated branded companies supply products internally to retailers, while other brand
companies supply products through wholly-owned wholesalers, agencies or third party distributors.
Products are typically designed by the brands themselves and manufactured mostly in the Far East,
and sometimes in Europe or South America. In certain instances, the manufacturer is owned and
operated by the brand and in other instances it is outsourced by the brand. Some brands use buying
teams or groups to source their products around the world and are not aligned to, or contracted, with
any manufacturer; they may also have different buying teams for different markets. Occasionally,
brands outsource part of their manufacturing operations to distributors.
Vertically-integrated branded retailers and concessions in department stores source their product
from their parent company. Vertically integrated brands internalise the supply, wholesale and retail
aspects of their supply chains. The retailers and wholesalers are part of the branded company and
operate under the instruction of the parent company. The brand supplies its products to its stores and
concessions in department stores. There is no intermediary or third party involved in the supply chain.
Own-bought product suppliers to independent stores and department stores, use wholly-owned
distributors, agencies and/or third party distributors in each country. Which avenue a supplier takes
ultimately depends on how the branded company wishes to operate its distribution and the benefits or
service each distribution type can offer.
Large multinational brands tend to have wholly-owned wholesalers based in the larger countries.
Some brands have two separate wholly-owned wholesalers for each Trading Area; others have one
wholly-owned wholesaler for the two jurisdictions. In some cases, rather than an office, the brand has
a country representative, an employee of the brand, to manage the supply. Most wholly-owned
wholesalers use selective distribution arrangements, i.e., supply to a number of different independent
stores and department stores. For example, a wholly-owned wholesaler may supply that brand’s retail
chain plus to other distribution chains. In the case of some brands, there may be an exclusive
distribution arrangement whereby one retailer and its stores, or a chain, receives exclusivity for the
product in the country.
Some brands distribute through independent agents. The agent places the order to the brand on
behalf of the retailer and receives a commission in return for placing the order. The agent does not
buy the product and, therefore, in some sense the agent is an arm of the brand. Retailers may
negotiate terms and prices either with the agent or the branded supplier; at what level the retailer
negotiates terms varies depending on retailer size. Most agents distribute more than one brand.
Branded companies and retailers tend to prefer not to deal with a “middle man”, therefore, these types
of agency agreements are rarely found in the market.
Some brands distribute their product through third party distributors. Third party distributors buy
products from the brand and resell it to retailers in the country, i.e., they are the customers of the
brand and have an account with them. Therefore, third party distributors take on a business risk. For
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3 Suisses International Group - France
example, Distribution downstream to the retail level can be either an exclusive or selective
arrangement. However, given the preference of not dealing with a “middle man” distributors are rarely
found in the market. Most of the brands sold through third party distributors are lesser known brands.

Nature of Competition
Ultimately suppliers compete for consumer demand by building brand awareness and through
interactions with retailers. However, some suppliers compete mostly at the brand level. Brand
competition is a critical feature of competition at supply level. Brands compete by establishing a brand
that reflects the image and category in which they wish to operate; high range, middle range or low
cost. They will also price their product in a way that reflects the category and brand image they have
created. Where they sell through independent retailers and department stores, they generally choose
retailers whose own image is aligned to that of the brand’s image.

High range brands compete with each other by establishing a desirable brand through
expensive image building mechanisms.

Middle range brands compete with each other through advertising.

Suppliers to low cost retailers (i.e. manufacturers in the Far East and South America etc.)
compete on price.

Agencies compete by providing competitive commissions to the brands. Third party
distributors also compete with each other, by the services they offer, guaranteed sales
volume and other commercial activities.

Suppliers also compete in their interactions with retailers, in terms of space, commission, and
location in the store. For example, concessions in department stores will compete for the best
location in the store, i.e., where there is the most footfall. Suppliers also compete to have their
products sold in the signature stores in a city.

Supplier Price Differentials
There are some supplier price differentials in each county and these are usually in the range 1-10%.
This suggests that, despite the rising cost of doing business, the level of competition in most countries
(as well as the expansion in the volumes sold) kept prices from rising relative to other countries
except when the exchange rates changed significantly.
The 2008 recession and the depreciation of some currencies, coupled together, have significantly
impacted upon the retail business. Retail sales declined in many countries. Increasing numbers of
retail chains have gone into administration in some areas, due largely to the global economic crisis.
The effect of the price gap between some countries has been that footfall and same brand sales in
some countries have reduced significantly due to consumers changing their behaviour, where the
effect is not so significant in other countries.
Consumers’ shopping behaviour has changed in a number of ways: Consumers are reducing the
volume of purchases they are making. Consumers are increasingly buying from discount suppliers.
Consumers are switching. Low cost branded stores do not appear to have been as negatively
affected as other stores; what they have lost in terms of consumers reducing purchases overall, they
have gained from consumers switching from mid-range to their low price/high value stores. In
addition, Retailers contend that consumers are switching to retailers that source their product in
currencies less impacted by the exchange rate.
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Retailer Reaction
The exchange rate fluctuations and the global recession have occurred simultaneously and it is
therefore not clear how much of the decline in sales is attributable to the recession and how much to
the exchange rates.
In response, retailers have tried to cut costs by reducing the cost of doing business and the cost of
product. They have reduced the cost of doing business by reducing opening hours, working hours and
pay.
With respect to cost of product, retailers can either try to renegotiate a price with their supplier, switch
supply by switching brands, or by-pass the current branded supplier and source product from an
alternative supplier.
The extent of exchange rate pressure and reduced footfall has driven retailers to go back to their
suppliers, be it the manufacturer, wholly owned wholesalers, third party distributors or an agency,
requesting price reductions. Renegotiating prices with suppliers may be difficult due to the seasonality
of retailing and limited buyer power of stores in some countries.
Generally, retailers organise their stock for at least the following two seasons, or perhaps even for the
coming year. Thus retailers decide on their stock and volume of purchases between six months to a
year in advance; simultaneously price for the product is agreed typically in US$. In addition, in order
to minimise currency risk, some retailers may hedge their currency at that time. Thus, due to these
agreed prices and volumes, retailers are finding it difficult to renegotiate price with their suppliers.
Retailers will, at the time of agreeing price with their supplier, set their retail prices. Given that this
may be done a number of months in advance, by the time product appears on the shelf, exchange
rates may have changed. This effect should diminish as retailers purchase the next round of stock
which will be based on more recent exchange rates.
The ability of a retailer to negotiate price reductions will depend also on its importance to the supplier,
i.e., the extent of its buyer power. National retailers are often small in international terms.
Switching brands may not be a possible option if the brand is a “must have” brand for the retailer, for
example, consumers expect all sports stores to have certain international sports brands. It will
negatively affect the retailer’s image if it does not have the must have brands for certain categories of
products.
Retailers, independent stores and department stores contend that sourcing product by by-passing the
current source of supply, i.e., the wholly-owned wholesaler, third party distributor or agency, is
difficult. They state that the head office or equivalent regional distributor will direct the retailer back to
the designated national distributor. Most international brands use wholly-owned wholesalers, thus the
alternative source of supply is simply a different arm of the same company. In some cases retailers
have been successful in renegotiating the currency in which they pay, but in most cases this has been
refused.
Retailers’ attempts to get better prices following currency depreciation may be more difficult in some
countries. Some retailers that operate in several countries may be able to benefit from sourcing
product for their stores in one country through their supply chain in another country. Thus, any
potential benefits arising from the changes in one currency may be spread across that retailer’ outlets.
For department stores and independent retailers, alternative sources of supply, such as the grey
market, may be an option. However, products from the grey market are seldom the latest design and
may be limited in the range and options it comes in. It also has limitations in terms of consistency of
supply, and thus may not be an adequate option.
The individual stores of vertically-integrated middle range retailers do not have any alternative option
to source product, as they must source their product internally. Prices in these stores are not set by
the retailer but the head office of the brand and therefore they are constrained by the controlled
supply channel in which they operate. These vertically-integrated brands are large international
brands that operate on a large scale. Any national market is likely represents only a small portion of
their overall business.
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Some low cost retailers are not experiencing as much difficulty in switching sources of supply as
independent stores or department stores. This is due to the fact that they tend to be verticallyintegrated and are not aligned with any one supplier but instead they source manufactured product
from the Far East based on the best price, design, quality and range. These low cost retailers market
themselves on price.
Despite the constraints faced by some retailers, they are reacting by re-pricing products, increasing
sales/discounts and promotions, and trying to source new products that have more attractive price
and quality characteristics.

Supplier Reaction
Suppliers’ responses to increased pressures from retailers to reduce prices will depend on their ability
and willingness to reduce prices.
Distributors of brands under pressure from retailers to reduce prices will themselves be limited in their
ability to reduce prices to the extent that they can renegotiate a price reduction with their upstream
supplier. Brands source product directly from their own, or contracted, manufacturers. This is often
done in the Far East or other countries and therefore they operate in a number of currencies. Supplier
costs are therefore largely in various exchange rate susceptible currencies. In reality, national
suppliers may have a small portion of costs in their own currency and may not be able to pass on the
current “expectation” that exists in the market.
In addition, brand companies tend to be vertically integrated upstream through contracted
manufacturers and downstream through wholly-owned retailers and/or distributors; due to this tight
distribution arrangement, the seasonality, and likely hedging aspects of suppliers’ operation, the
extent to which they can quickly react to changes in currency fluctuations will be limited.
Overall, suppliers are being negatively affected by falling sales and the depreciation of operating
currencies and therefore they do not want to lose revenue in the market as well. Some retailers stated
that the currency depreciation warranted a price increase in their country but that branded companies
would find it difficult to increase prices in that country because of recessionary pressures.
The bigger the market, the riskier it is to increase prices. In addition, branded companies tend to
operate across a number of countries.

Conclusion
Differences in price level between different national markets have to some extent always been
present, and changes in the differences in price level arise, amongst other reasons, due to currency
movements. Since 2008 branded goods prices in one country have fluctuated in comparison with
other countries. The effect of the pricing changes is driving consumers to change their shopping
behaviour to the detriment of the majority of retailers. Low cost retailers however have not been as
negatively affected; what they may have lost in terms of reduction in consumer spending they have
gained from price conscious consumers switching to them. Among other things, retailers have
responded by increasing sales/discounts and promotions, and in some instances re-ticketing items to
bring down in price.
However, the extent of the response of retailers is limited by the extent to which they can reduce their
costs of doing business, for example, reducing opening hours, and their cost of product. The ability to
reduce cost of product is constrained by three elements; the seasonality of the market, limited buyer
power and the ability to switch sources of supply.
Stocks and prices are determined six to 12 months before they appear in store. In most countries
retailers are relatively small internationally.

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3 Suisses International Group - France
Low cost retailers can easily switch sources of supply, though with a time lag. They are not aligned
with any particular manufacturer and source product based on a mixture of quality and low price. If
they are not happy with supply they will source it from elsewhere.
At the other end, vertically-integrated retailers operating in some overseas countries cannot switch
supply and are constrained by the parent company’s distribution arrangements. The stock available to
these stores is purchased centrally; their ability to switch will depend on how quickly they can
renegotiate price with their manufacturer or find another source of supply elsewhere.
Retailers who resell a range of brands (independent retailers and department stores) also have
limited ability to switch supply and find identical product elsewhere. They have long term relationships
with brands which they need to maintain. They are thus seeking price reductions from suppliers.
The extent to which these retailers can negotiate lower prices is dependent on their buyer power.
Department stores and branded resellers may be able to source supply in favourable currencies
through their international operations. In some instances locally-operated retailers have been able to
switch to paying in a different currency but in the main they have not. Thus locally operated retailers
may be temporarily disadvantaged compared to international retailers.
The instability of the exchange rates has had a significant impact on retailing in many countries.
International brands which manufacture outside the country will likely adjust their forthcoming
seasons’ prices in line with the currency fluctuations.
Brands differentiate themselves in terms of price, quality and design. The products are generally
manufactured in lower cost areas. The depreciation in the value of some currencies and the recession
have led to a fall off in demand for branded products generally, though low cost retailers appear to be
benefiting from consumers switching to them from more expensive brands.
Retailers have responded by increasing sales/discounts and promotions, and in some instances by
re-ticketing items to bring down the price. The extent to which retailers may reduce prices is
dependent upon the extent to which they can reduce their costs.
Their ability to reduce the amount they pay for the products they sell is constrained by three elements;
the seasonality of the market, limited buyer power and the ability to switch sources of supply.

Seasonality in the Market: The prices paid by retailers to suppliers were set six to twelve
months ago and renegotiating those prices is difficult, though retailers have indicated that
they have had some limited success.

Limited Buyer Power: The extent to which retailers can negotiate lower prices is dependent
on their buyer power. Stores that have access to stock through related overseas stores have
slightly more scope to access products at lower prices. In some instances retailers have been
able to switch to paying in other currencies but in the main they have not.

Switching Sources of Supply: The ease with which retailers may switch to alternative bettervalue sources of supply depends upon the type of product that they retail. Low cost retailers
can most easily switch sources of supply, though with a time lag (due to seasonality). Such
retailers are not so aligned with any particular manufacturer. The supply chains of the midrange retailers who operate wholly-owned retail outlets and sell a single product brand are far
less flexible. These retailers tend to have an international presence; purchasing and
distribution arrangements for the outlets in any particular country are typically determined
centrally. Retailers who resell a range of brands (e.g. supermarkets and department stores)
also have limited ability to switch sources of supply. Such retailers argue that they have longterm relationships with branded product suppliers which they need to maintain. Alternative
sources for a particular brand cannot be relied on to come in the full range of products or to
be from the current season. A notable feature of retailing is the apparent low level of
alternatives for many retailers. With the exception of low cost products, competition is largely
about branding and image, within a particular price/quality range. Thus, it is difficult for stores
with on-going relationships with brands to switch to alternative brands. As the seasons roll on
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and the seasonal pattern of sales continues, all brands have the opportunity to set national
prices in a way that reflects more recent exchange rates.

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3 Suisses International Group - France

Distributors – Market Entry choices

Market

Distributor –
Domestic
owned

Distributor –
Direct
investment

Distributor –
Joint Ventures

Distributor –
other

%

%

%

%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

The data above is derived from trade surveys.

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Retail Presence – Market Entry choices

Market

Retail –
Domestic
owned

Retail – Joint
venture

Retail – Direct
investment

Retail – other

%

%

%

%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

The data above is derived from trade surveys.

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3 Suisses International Group - France

Distribution Channel: Advantages – Disadvantages

%

%

%

%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

The data above is derived from trade surveys.

334

%

%

%

%

%

Joint Venture – Local
Knowledge

Joint Venture – Lower
start-up costs

Direct investment –
Control of Costs, Brand,
Distribution

Domestic – lower startup costs

Domestic – no direct
investment

Advantages

Joint Venture – Long
term risk

Direct investment – High
start-up costs

Direct investment – Risk
of loss of investment

Domestic – Little Brand
control

Domestic – No
Distribution control

Disadvantages

%

3 Suisses International Group - France

Direct Retail
Investment

%

%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

The data above is derived from trade surveys.

335

%

%

Unspecified

Domestic Distributors
– Joint Ventures

%

Franchisees

Domestic Distributors Exclusive

%

Retail Joint Venture

Domestic Distributors Non-exclusive

Market Entry options for Domestic Brands

%

3 Suisses International Group - France

Direct Retail
Investment

%

%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

The data above is derived from trade surveys.

336

%

%

Unspecified

Domestic Distributors
– Joint Ventures

%

Franchisees

Domestic Distributors Exclusive

%

Retail Joint Venture

Domestic Distributors Non-exclusive

Market Entry options for Established or Global Brands

%

3 Suisses International Group - France

%

%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

The data above is derived from trade surveys.

337

%

%

Vulnerabilities

Survivability

Opportunities

Competitiveness

Dynamism

Market Entry Features

%

3 Suisses International Group - France

Start-up Costs
Start-up Costs, Initial Investment and Product Launch Balance sheet
Direct and Indirect Market Entry

There are three scenarios examined in the data below, A Brand / Franchise Store launch, and Indepe
ndent Store launch (probably carrying Branded product lines) and the use of a Distributor or Exclusive
Wholesaler to introduce a new Brand to the country concerned.

The data provides the following matrices:1) Time from Start to Store Opening
2) Start-up Investment Cost (excluding Inventory)
3) Market Entry Investment, by type of Market Entry, with Economies of Scale:

A Cost comparison given for 1, 3, 5, and 10 stores on the grounds that there may be some cost a
dvantages associated with the economies of scale of opening multiple outlets.

Inventory Costs
The Start-up costs data excludes the initial Inventory investment. This is because there are a large
number of ways in which Franchised Brands, Independent Retailers, In-Store Departments and sales
via Distributors are financed.
Some Franchised Brands offer Consignment deals, or Sale-or-Return deals, or inventory financing.
Similarly there are inventory financing deals available for In-Store Departments.

338

3 Suisses International Group - France

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
The data above is derived from trade surveys.

339

Total Brand Store Startup Cost

Cash-in-Hand

Store Opening & PR

Marketing

Legal & Accounting

Banking & Payments
System

IT Equipment &
Services

Business Expenses

Store Equipment &
Supplies

Utilities & Deposit

cost (‘000)

Store fitting

selling space

Property Deposit

100 SqM

Rental Month 1

Brand Store Start-up Costs

3 Suisses International Group - France

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15
The data above is derived from trade surveys.

340

Total Independent
Store Start-up Cost

Cash-in-Hand

Store Opening & PR

Marketing

Legal & Accounting

Banking & Payments
System

IT Equipment &
Services

Business Expenses

Store Equipment &
Supplies

Utilities & Deposit

cost (‘000)

Store fitting

selling space

Property Deposit

100 SqM

Rental Month 1

Independent Store Start-up Costs

3 Suisses International Group - France

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

The data above is derived from trade surveys.

341

Total Brand In-store
Start-up Cost

Cash-in-Hand

Store Opening & PR

Marketing

Legal & Accounting

Banking & Payments
System

IT Equipment &
Services

Business Expenses

Store Equipment &
Supplies

Utilities & Deposit

cost (‘000)

Store fitting

selling space

Deposit

25 SqM

Rental Month 1

Brand In-Store Start-up Costs

3 Suisses International Group - France

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

The data above is derived from trade surveys.

342

Distributor / Exclusive
Wholesaler Sign-up

Miscellaneous

Public Relations

Marketing Support

Legal & Accounting

Banking

IT Services

Business Expenses

Cost (‘000)

Support Equipment &
Supplies

Distributor / Exclusive Wholesaler Sign-up Costs

3 Suisses International Group - France

Weeks
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

The data above is derived from trade surveys.

343

Total Time

Launch Delay

Systems Installation
& Staff training

Store fitting

Regulatory
Requirements

Premises Acquisition

Initial Contractual
Negotiations

Start Times Weeks: Brand Store

3 Suisses International Group - France

Weeks
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

The data above is derived from trade surveys.

344

Total Time

Launch Delay

Systems Installation
& Staff training

Store fitting

Regulatory
Requirements

Premises Acquisition

Initial Contractual
Negotiations

Start Times Weeks: Independent Store

3 Suisses International Group - France

Weeks
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

The data above is derived from trade surveys.

345

Total Time

Delivery Lag &
Launch Delay

Systems Installation
& Staff training

Marketing Support

Regulatory
Requirements

Financial
Arrangements

Initial Contractual
Negotiations

Start Times Weeks: Distributor / Exclusive Wholesaler

3 Suisses International Group - France

10 Outlets

5 Outlets

3 Outlets

Single Store

10 Outlets

Start-up 25SqM

5 Outlets

100SqM
3 Outlets

100SqM
Single Store

Brand In-store

10 Outlets

Independent Store

5 Outlets

‘000

Brand Store

3 Outlets

Per outlet

Single Store

Economies of Scale with multiple Stores

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

The data above is derived from trade surveys.
The data indicates that the cost savings from economies of scale are somewhat variable. This is
undoubtedly due to the fact that the practice of the opening of multiple outlets is not consistent
because the companies undertaking these enterprises are very variable in their methods.
It is the case that the major companies do enjoy significant economies of scale, but these are based
on multiples of several hundred locations. Furthermore, whereas the brand owned outlets may enjoy
such economies of scale the brand owner may not always pass on the entire volume saving to any
franchisee. Thus the unit cost of shop fittings and furnishings for a 3 store franchisee may only be
reduced fractionally if that franchisee were to open 5 stores.
There are some cost savings evident in respect of the shop fitting costs where more than one store is
involved, and also in the budget for ‘cash-in-hand’; however the cost savings for the other
components are not significant and will depend on the negotiation ability of the entrepreneur more
than on any actual reductions for volume.

346

3 Suisses International Group - France

Cash Flow, Profit & Loss, Balance Sheet, Project Financial
Analysis
The DataGroup Toolkits contains the following spreadsheets to enable users to produce:Start-up financial data is shown above and this forms both the Fixed Capital and Working Capital for
the start-up.
The format of this balance sheet is based on U.S. accounting standards.
See: http://www.dg-di.eu/PureData/Base_PureData/Ch_Chapters/Ch_FIN_DEFI.htm

12 Months Cash Flow Analysis
http://www.dg-di.eu/BASE_FOLDERS/xls/CASH_FLOW.xls
CASH FLOW FORECAST
Month 1
Fr = Forecast : Ac = Actual

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Fr

Ac

Fr

Ac

Fr

Ac

Fr

Ac

Fr

Ac

Fr

Ac

Fr

Ac

Fr

Ac

Fr

Ac

Fr

Ac

Fr

Ac

Fr

'000

'000

'000

'000

'000

'000

'000

'000

'000

'000

'000

'000

'000

'000

'000

'000

'000

'000

'000

'000

'000

'000

'000

1 Revenues
2 Orders
3 TOTAL SALES

Ac
'000
0
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

37 Total Payments

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

38 Net Cash Flow

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

RECEIPTS
4 Sales receipts
5 Sales debtors
6 Loans / Grants received
7 Miscellaneous income
8 CASH ACCOUNT TOTAL
9 Capital
10 Asset & other disposals
11 TOTAL RECEIPTS

PAYMENTS
12 Finished Materials Cost
13 Fuel Cost
14 Electricity Cost
Total Input Materials + Energy
15 Costs
16 Payroll Costs
17 Wages
18 Directors' Remunerations
19 Employee Benefits
20 Employee Commissions
Total Employees
21 Remunerations
22 Total Rental & Leasing Costs
23 Total Maintenance Costs
24 Services Purchased
25 Communications Costs
26 Miscellaneous Expenses
27 Sub Contractors
Total Miscellaneous
28 Operational Costs
29 Total Sales Costs
Total Distribution and Handling
30 Costs
31 Total Advertising Costs
32 Total After-Sales Costs
Total Research and
33 Development Expenditure
34 Interest
Net Taxes & Duties (Value
Import,
etc.) Security,
35 Added,
Tax (Income,
Social
36 etc.)

39 Opening Bank Balance
40 Cash in Bank

0

347

3 Suisses International Group - France

First 12 months and First 3 years Profit & loss Account
http://www.dg-di.eu/BASE_FOLDERS/xls/PROFIT_LOSS.xls
PROFIT & LOSS ACCOUNT
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10Month 11Month 12 Year 1
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
1 Domestic Revenues
2 Overseas Revenues
3 Total Revenues
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56

0
0

0

0

0

0

0

0

0

0

0

0

0

0
0

Finished Materials Cost

0

Fuel Cost

0

Electricity Cost
Total Input Materials + Energy Costs

0

0

0

0

0

0

0

0

0

0

0

0
0

Wages

0

Directors' Remunerations

0

Employee Benefits

0

Employee Commissions
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0
0

Communications Costs

0

Miscellaneous Expenses
0

0

0

0

0

0

0

0

0

0

0

0
0

Sales Expenses and Costs

0

Sales Materials Costs

0

0

0

0

0

0

0
0

0

0

0

0

0

0

0

0

0

0

0

0

Distribution Fixed Costs

0

Distribution Variable Costs

0

Warehousing Fixed Costs

0

Warehousing Variable Costs

0

Physical Handling Fixed Costs

0

Physical Handling Variable Costs

0

Physical Process Fixed Costs

0

Physical Process Variable Costs

0
0

0

0

0

0

0

0

0

0

0

0

0

0

Mailing & Correspondence Costs

0

Media Advertising Costs

0

Advertising Materials & Print Costs

0

POS & Display Costs

0

Exhibition & Events Costs

0
0

0

0

0

0

0

0

0

0

0

0

0

0

Product Returns & Rejection Costs

0

Product Installation & Re-Installation Costs

0

Product Breakdown & Post Installation Costs

0

Product Systems & Configuration Costs

0

Product Service & Maintenance Costs

0

Customer Problem Solving & Complaint Costs

0

Total After-Sales Costs

0

0

0

0

0

0

0

0

0

0

0

0

0

Total Marketing Costs

0

0

0

0

0

0

0

0

0

0

0

0

0

New Technology Expenditure

0

New Production Technology Expenditure

0

Total Research and Development Expenditure

0

0

0

0

0

0

0

0

0

0

0

0

0

Total Operational & Process Costs

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Depreciation: Structures

0

Depreciation: Plant and Equipment

0

Depreciation: Miscellaneous Items

62 Trading Profit

0

0
0

Sales Personnel Variable & Commission Costs

Total Depreciation

0

0

Sub Contractors

Total Advertising Costs

0

0
0

Services Purchased

Total Distribution and Handling Costs

0

0

Maintenance: Plant and Equipment

Total Sales Costs

0

0
0

Maintenance: Structures

Total Miscellaneous Operational Costs

0

0

Rental & Leasing: Plant + Equipment

Total Maintenance Costs

0

0
0

Rental & Leasing: Structures
Total Rental & Leasing Costs

0

0
0

Payroll Costs

Total Employees Remunerations

Year 3
'000

0

Raw Materials Cost

57 Operating Profit
58
59
60
61

Year 2
'000

0
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

63 Interest Paid
64 Non-trading Income
65 Pre-tax Profit

348

3 Suisses International Group - France

1-7 Years Balance Sheet
http://www.dg-di.eu/BASE_FOLDERS/xls/BALANCE_SHEET.xls

BALANCE SHEET
Year 1
'000
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

Year 2
'000

Year 3
'000

Year 4
'000

Year 5
'000

Year 6
'000

Year 7
'000

Fixed Assets: Structures
Fixed Assets: Plant and Equipment
Fixed Assets: Miscellaneous Items
Fixed Assets

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Total Retirements

0

0

0

0

0

0

0

Total Fixed Assets

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Total Current Assets

0

0

0

0

0

0

0

Total Assets

0

0

0

0

0

0

0

Total Current Liabilities

0

0

0

0

0

0

0

Net Assets / Capital Employed

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Capital Expenditure on Structures
Capital Expenditure on Plant and Equipment
Capital Expenditure on Vehicles
Cap. Expend. on Data Processing Equipment
Capital Expenditure on Miscellaneous Items
Total Capital Expenditure
Retirements: Structures
Retirements: Plant and Equipment
Retirements: Miscellaneous Items

Finished Product Stocks
Work in Progress as Stocks
Materials as Stocks
Total Stocks / Inventory
Debtors
Miscellaneous Current Assets

Creditors
Short Term Loans
Miscellaneous Current Liabilities

Long Term Loans
Miscellaneous Long Term Liabilities
Shareholders Funds
Persons

Persons

32 Workers
33 Total Employees

349

Persons

Persons

Persons

Persons

Persons

3 Suisses International Group - France

10 Years Project Financial Analysis
http://www.dg-di.eu/BASE_FOLDERS/xls/Project_Financial_Analysis.xls

Project Financial Analysis
INPUT SHEET: USER ENTERS ALL BOLD NUMBERS
INITIAL INVESTMENT

CASHFLOW DETAILS

Initial Investment=

$150,000

Opportunity cost (if any)=

$7,484

Lifetime of the investment
Residual Value at end of project=
Deprec. method(1:St.line;2:DDB)=
Tax Credit (if any )=
Other invest.(non-depreciable)=

DISCOUNT RATE

Revenues in year 1=

$240,000

Var. Expenses as % of Rev=

Approach(1:Direct;2:CAPM)=

50%

10

Fixed expenses in year 1=

0

$100,000

Tax rate on net income=

40%

1. Discount rate =

2
10%

2a. Beta

0.9

b. Riskless rate=

8.00%

2

If you do not have the breakdown of fixed and variable

c. Market risk premium =

5.50%

10%

expenses, input the entire expense as a % of revenues.

d. Debt Ratio =

30.00%

0

e. Cost of Borrowing =

9.00%

Discount rate used=

10.69%

WORKING CAPITAL
Initial Investment in Work. Cap=

$15,000

Working Capital as % of Rev=

25%

Salvageable fraction at end=

100%

GROWTH RATES
1

2

3

4

5

6

7

8

9

10

Revenues

Do not enter

10.00%

10.00%

10.00%

10.00%

0.00%

0.00%

0.00%

0.00%

0.00%

Fixed Expenses

Do not enter

10.00%

10.00%

10.00%

10.00%

0.00%

0.00%

0.00%

0.00%

0.00%

5

6

7

8

9

10

Default: The fixed expense growth rate is set equal to the growth rate in revenues by default.
YEAR
0
1
2
3
INITIAL INVESTMENT
Investment
$150,000
- Tax Credit
$15,000
Net Investment
$135,000
+ Working Cap
$15,000
+ Opp. Cost
$7,484
+ Other invest.
$0
Initial Investment
$157,484
RESIDUAL VALUE
Equipment
Working Capital
OPERATING CASHFLOWS
Lifetime Index
Revenues
-Var. Expenses
- Fixed Expenses
EBITDA
- Depreciation
EBIT
-Tax
EBIT(1-t)
+ Depreciation
- ∂ Work. Cap
NATCF
($157,484)
Discount Factor
1
Discounted CF
($157,484)

$0
$0

1
$240,000
$120,000
$0
$120,000
$30,000
$90,000
$36,000
$54,000
$30,000
$45,000
$39,000
1.10685
$35,235

$0
$0

1
$264,000
$132,000
$0
$132,000
$0
$132,000
$52,800
$79,200
$0
$51,000
$28,200
1.225116923
$23,018

$0
$0

1
$290,400
$145,200
$0
$145,200
($4,000)
$149,200
$59,680
$89,520
($4,000)
($38,400)
$123,920
1.356020666
$91,385

4

$0
$0

1
$319,440
$159,720
$0
$159,720
$0
$159,720
$63,888
$95,832
$0
$7,260
$88,572
1.500911474
$59,012

$0
$0

1
$351,384
$175,692
$0
$175,692
$0
$175,692
$70,277
$105,415
$0
$7,986
$97,429
1.661283865
$58,647

$0
$0

1
$351,384
$175,692
$0
$175,692
$0
$175,692
$70,277
$105,415
$0
$0
$105,415
1.838792046
$57,329

$0
$0

1
$351,384
$175,692
$0
$175,692
$0
$175,692
$70,277
$105,415
$0
$0
$105,415
2.035266976
$51,794

$0
$0

1
$351,384
$175,692
$0
$175,692
$0
$175,692
$70,277
$105,415
$0
$0
$105,415
2.252735252
$46,794

$0
$0

1
$351,384
$175,692
$0
$175,692
$0
$175,692
$70,277
$105,415
$0
$0
$105,415
2.493440014
$42,277

$100,000
$87,846

1
$351,384
$175,692
$0
$175,692
$0
$175,692
$70,277
$105,415
$0
$0
$105,415
2.759864079
$106,259

Investment Measures
NPV =
$414,267
IRR =
42.43%
ROC =
75.60%

Book Value (beginning)
Depreciation
BV(ending)
$150,000

$150,000
$30,000
$120,000

$120,000
$0
$120,000

BOOK VALUE & DEPRECIATION
$120,000
$124,000
$124,000
($4,000)
$0
$0
$124,000
$124,000
$124,000

350

$124,000
$0
$124,000

$124,000
$0
$124,000

$124,000
$0
$124,000

$124,000
$0
$124,000

$124,000
$0
$124,000

3 Suisses International Group - France

SWOT Analysis
SWOT analysis by type of Market Entry
Entry via Company Owned Retail Stores
Strength

Weaknesses

Control of Brand

Difficult Learning Curve

Control of Costs

High Direct Investment Costs

Control of Profitability

High Risk of Failure

Opportunities

Threats

Direct Contact with Customer Base

Inexperience with local conditions

Ability to Adapt Products

Local competitors

Ability to Directly Influence Investment Decisions

Potential fragility of local management

Entry via Domestic Retail Joint Venture
Strength

Weaknesses

Partner’s knowledge of the country

Difficult in Finding Partner

Reduced Direct Investment Costs

Loss of Cost Controls

Reduced Risk of Failure

Reduced Margins & Profit Potential

Opportunities

Threats

Joint Development of Customer Base

Partner’s business policies

Ability to Adapt Products

Market Power of major competitors

Ability to Directly Influence Investment Decisions

Potential fragility of partnership

The data above is derived from trade surveys.

351

3 Suisses International Group - France

Entry via National Franchise Licensee
Strength

Weaknesses

Licensee’s knowledge of the country

Difficult in finding suitable Licensee

Reduced Direct Costs

Loss of Geographic Controls

Reduced Risk of Direct Losses

Reduced Margins & Profits

Opportunities

Threats

Effective Development of Franchisees

Competitors’ business policies

Potential to achieve better market penetration

Market Power of major competitors

Ability to Extend Brands and Products

Potential fragility of Licensee

Entry via Intensive Individual Franchising
Strength

Weaknesses

Control of Brand

Difficult Marketing process

Reduced Direct Costs

Difficult in finding suitable Franchisees

Reduced Risk of Direct Losses

High Risk of Failure of Franchisees

Opportunities

Threats

Better Contact with Customer Base

Franchisees targeted by competitor

Ability to Extend Brands and Products

Local brand competition

Ability to Directly Influence Investment Decisions

Potential fragility of Franchisees

The data above is derived from trade surveys.

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Entry via Exclusive National Distributor
Strength

Weaknesses

Distributor’s knowledge of the trade

Difficult in finding suitable Distributor

Reduced Direct Costs

Loss of Geographic Controls

Reduced Risk of Direct Losses

Reduced Margins & Profits

Opportunities

Threats

Ability to reach smaller and more remote retailers

Competitors’ business policies

Potential to achieve better market penetration

Possible loss of Brand Equity

Ability to use Distributor’s local expertise

Potential fragility of Distributor

Entry via Intensive National Distribution / Wholesaling
Strength

Weaknesses

Distributors’ knowledge of the trade

Difficult in controlling Distributors

Reduced Direct Costs

Loss of Geographic Controls

Reduced Risk of Direct Losses

Reduced Margins & Profits

Opportunities

Threats

Ability to reach smaller and more remote retailers

Competitors’ business policies

Potential to achieve better geographic coverage

Loss of Brand Equity

Ability to use Distributors’ local knowledge

Potential fragility of Distributors

The data above is derived from trade surveys.

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Competitive Analysis

Retailers

%

%

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from trade surveys.

354

%

%

%

%

%

%

Customer service

Expansion plans

Product supply sources

Marketing activities

Pricing structure

Product criteria

Product design

Brand quality

Product Lines

Sales

Operational strengths

Brand strengths

Locations

Retail Brands

%

3 Suisses International Group - France

Market Penetration Prospects
Advancing into the target markets

Relative difficulty
Low
Markets

%

Moderate

%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

The data above is derived from country surveys.

355

%

High

%

%

3 Suisses International Group - France

Brand Concept
A brand is defined as: “A name, term, sign, symbol, or design, or combination of them, intended to
identify the goods and services of one seller or group sellers and to differentiate them from those of
competitors.”
Branding thus is a means to distinguish one product from another and these differences may be
functional, rational, or tangible and fundamentally related to product performance of the brand.
In the developing countries a ‘Brand’ is frequently no more than a European sounding name on a
copy of some European design. This use of facsimiles by developing country producers has shown
the limitations of their business models.
It is necessary to distinguish a Brand from a Label. Labels or Own-Brand Labels tend to be generic
or standard products which simply bear the label or identification of a supermarket or some other
retailer. In general labels do not have the same status as brands in the mind of consumers, albeit the
quality and designs may have little differentiation; however consumers expect labels to have lower
price as than brands.

Brand Equity
Brand equity is intangible added value endowed to products and services. This value may be
reflected in how consumers think, feel, and act with respect to the brand, as well as the prices and
price premiums demanded by a brand, market share, and ultimately the profitability that the brand
commands for the firm. Brand equity is an important intangible asset that has image and financial
value to the firm. In the regional markets there is no extended history of brand image creation and it is
for this reason that developing country companies have to be particularly attentive to the
enhancement the brand equity of their products.

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Customer Based Brand Equity
Customer based brand equity can be defined as the differential effect that brand knowledge has on
the consumer response to the marketing of that brand. Positive customer based brand equity is when
consumer react more favourably towards a branded product than to competitive products. Regional
brands can use the attitudes and perceptions of the customer base to increase customer based brand
equity. These perceptions may be, for example, the tendency for older demographics to be more
conservative or chauvinistic.

Brand Knowledge
Brand knowledge consists of all the thoughts, feelings, images, experiences, beliefs, and so forth, that
becomes associated with the brand. In particular, brands must create strong, favourable, and unique
brand associations with the target customer base. Brand knowledge is low in many developing
country markets and this presents opportunities to new brands entering those markets.

Substantial Brand Knowledge & Awareness – All Brands
% Social Group
Awareness
AB

Market

%

C1
%

C2
%

% Age Group Awareness
DE

< 19

%

%

19-24

25-34

35-44

45-54

55-64

%

%

%

%

%

65+
%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

Brand knowledge and awareness is assessed during Consumer Surveys when consumers were
asked specific questions to test the strength of their awareness of named brands. The data above is
derived from statistically accurate social / income group, and full age spectrum, surveys.

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Brand Equity Model
Brand Equity can be seen as a group of five categories of the assets and liabilities of a brand that add
to or subtract from the value provided by a product or service to a firm and/or to that firm’s customers.
In the regional markets consumer in many markets are relatively unfamiliar with these brand assets
and therefore marketing strategies can be employed by companies to enforce these assets in the
mind of consumers.

These categories of brand assets are:
1. Brand loyalty
2. Brand awareness
3. Perceptions of quality
4. Brand associations
5. Proprietary assets, patents, trademarks, and distribution channel relationships.

In the regional markets insufficient attention has been paid to these issues and this has generally led
to the lack of global competitiveness of regional brands.

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Substantial Brand Loyalty – All Brands
Social Group Loyalty
AB

Market

%

C1
%

C2
%

DE
%

Age Group Brand Loyalty
< 19
%

19-24
%

25-34
%

35-44
%

45-54
%

55-64
%

65+
%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

Brand loyalty is assessed during Consumer Surveys when consumers were asked specifically for the
brands they purchased and then specifically if they would purchase the same brand(s) again. The
data above is derived from statistically accurate social / income group, and full age spectrum,
surveys.

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Substantial Brand Quality –v Price Perceptions – All Brands
Social Group

Market

Age Group Brand Quality -v- Price

AB

C1

C2

DE

< 19

19-24

25-34

35-44

45-54

55-64

65+

%

%

%

%

%

%

%

%

%

%

%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

Perceptions of Brand Quality is assessed during Consumer Surveys when consumers were asked
specifically if they believed that the brands they purchased were of a better product quality than other
or cheaper brands and if in general they believed that expensive brands were of a better product
quality. The data above is derived from statistically accurate social / income group, and full age
spectrum, surveys.

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Brand Knowledge Components

Brand
Awareness

Brand Recall

Packaging

Brand
Recognition

User
imagery

Usage
Imagery

Brand Image

Price

Brand
Knowledge

Brand
Associations

Favourable
Associations

Strength of
Associations

Uniqueness
of
Associations

Attributes

Benefits

Attitudes

Brand Resonance Components

361

Nonproduct
Related

Product
Related

3 Suisses International Group - France

Brand Resonance
The brand resonance model also views brand building as an ascending, sequential series from
bottom to top.

The Brand Resonance model:
1. Brand Salience relates to how often and
easily the brand is evoked under various
purchase or consumption situations.
2. Brand Performance relates to how the
product or service meets the customers’
functional needs.
3. Brand Imagery deals with the extrinsic
properties of the product or service,
including the ways in the brand attempts
to meet the customers’ psychological or
social needs.
4. Brand Judgments focus on the
customers’ own personal opinions and
evaluations.
5. Brand Feelings are the customers’
emotional responses and reactions with
respect to the brand.

Brand resonance refers to the nature of the relationship that customers have with the brand and the
extent to which customers feel that they are “in sync” or empathetic with the brand.

Producers in the regional markets have to decide with which brand concept they wish to align. They
can seek to produce a Global brand or they can seek to produce a Market Segmented brand. What
corporate history has suggested is that companies wishing to engage both concepts often fall
between both stools.

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Qualitative Brand Research
It is necessary to assess the strength as well as understand the nature of the brand’s equity, relative
to competitive brands, and to monitor that over time.
Assessing the strength of brand equity can be done by finding Brand Awareness, Salience, Brand
Preference and Brand Users.

Market

%

%

%

%

%

%

%

%

%

Attracted to Local
Brands

Attracted to Global
Brands

Styling

Acceptance

Style

Feelings

Judgments

Imagery

Performance

Salience

Qualitative Brand Identifiers

%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

Brand Resonance is assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.

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Brand Awareness according reflects the extent to which people can either remember or
recognize a brand. When people think about brands in a product category, those come to
mind represent recall brand awareness; they are recalled based only upon a category cue. If
someone is shown a list of brand names or pictures of packages, those that can be identified
represents recognition brand awareness.

Brand Salience depends upon awareness, but reflects the relative strength of that awareness
in relation to the target market’s awareness of other brands in the category. This relationship
will be reflected in the relative relationship between what is known as “top -of- mind”
awareness and all the other brands in the category of which someone is aware.

Brand Preference, like brand salience, can be an indicator of the strength of brand equity.
Brands that are preferred are likely to enjoy greater equity than those that are not. Preference
for a niche brand may be high in its market segment, but relatively low in the global market as
a whole.

Brand Users or category understanding is one of the primary functions of quantitative
research and specifically relates to Users of a particular brand vs. users of competitive
brands. Based upon this, one is able to “profile” various user segments.

Marketing communication applied to branded products
The market for branded products in developed countries is a highly competitive market whose main
characteristics is the similar positioning of a large number of competitive brands and, in this respect,
the brand’s image developed by marketing communications can influence the adoption process of the
products. In the regional markets, especially in the less developed countries, there is not the same
level of competition and this represents an opportunity for new brand entries.
The marketing stimuli used to influence the purchase decisions, must transmit a coherent message in
all advertising and communication activities. The co-ordination of this process must consider such
aspects as the brand awareness and the brand image, as determined by the nature of the consumers’
perception.
The image is a mental representation of the brand and the product’s attributes and benefits. It is a
multi-dimensional phenomenon that depends on the consumer’s perception of those attributes and
benefits. In branded products, both mental representation and its perception are built in a continuous
way, and developed through the image of fashion transmitted by each seasonal collection and by all
activities of marketing communication.
The overall effect of product branding depends on the integration of all the components of the
marketing communication plan, including visual merchandizing, with the product design. All these
three elements have an impact over the product adoption process and a similar final goal: to influence
the purchase option of branded products through the satisfaction of a certain product image demand.
Whereas the European and US fashion retailers have very long experience of these issues, the new
regional brands have a very steep learning curve.

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The Brand Image in the marketing communication process
Brand managers need to develop systems to regularly reinforce the brands’ image in relation to the
overall brand identity and consumer awareness of the importance criteria for that product brand.
Brand management is less of a developed art in the regional markets than it is in the US or Europe.
The brand may benefit from an enhanced reputation and closer proximity to its buyers if the design of
each collection takes into consideration the following aspects:

In order to keep or develop the value of the symbolic message of the brand, the brands’
image management should be focused on a small number of distinct styles;

The consumer buys or uses branded products of different types and styles;

An effective brand image developed through constant re-designs, allows the brand to achieve
image coherence and to capitalize on it in the market by building a global presence.

The adoption process of product brands reflects the significant impact of the popular and
cultural image that a brand transmits as well as its inherent identification potential (social,
cultural and economic).

Recognizing this, consumers search for brands that approximates with their own aspirations, needs
and wants; rather than that of the stereotypical people who may have appeared in advertisements
and the media. This is especially the case in markets which have traditionally been less exposed to
global culture. Whereas the upper middle classes in the developing countries are increasingly
exposed to global stereotypes, nonetheless the traditional aspects of these markets frequently
outweigh the global imagery.

The Store Image in the marketing communication process
The store image development is established through its geographical location, the retail space which
it occupies and its external design. In addition it is defined by the products that it offers and their
representation in the internal space of the store. The combination of these factors defines the store
atmosphere, or look, or personality. This should at all times conform to, and confirm, the target
customer base’s expectations of the store.
In many developing countries the store locations and the store space represents a major contributing
factor to mitigate the relatively high cost of global brands. The consumer is not only buying the brand,
but is also buying into the ‘shopping experience’ in a way that is more profound than experienced in
Europe or the USA.

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Consumer confidence and consumer markets

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

Consumer Confidence Index

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

Consumer confidence is assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.

Consumer Confidence
Consumer Confidence relates to Spending Attitudes in relation to the general Economic situation; the
definitive gauge of consumer sentiment around economic and social concerns across countries.
After periods of speculation and uncertainty around the economic conditions, at some stage
consumers reach a state of resignation to the economic realities and the majority will then usually
adopt rational spending levels for various product groups.
Consumer confidence worldwide often fluctuates wildly as relatively uninformed consumers attempt to
make sense of media coverage of economic circumstances, the propaganda of their political masters,
and their own empirical experience of the situation.

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In terms of the consumption of consumer products, the net effect is the changes in the propensity for
consumers to save rather than spend.
In the regional markets, as in the rest of the world, consumer confidence has fallen to its lowest level
in many years. The regional markets, and more particularly China and India are not forecast to
survive the current economic recession any better than the USA or Europe.
Over 50% of global consumers’ state they put their spare cash into savings; this is an increase of over
6% since 2010, and up 12% since 2008. The world’s most determined savers have always been in
the Asia-Pacific region, where an average of 61% of consumers chooses to save rather than spend.
Holidays and vacations continue to be a popular choice; with 26% of developing consumers planning
to spend on their annual holidays, by contrast 24% of consumers currently choose to buy new clothes
on a regular basis.
Consumer markets in developing countries have changed rapidly, and with strong growth in
disposable incomes, plus the development of modern urban lifestyles, developing country consumers
are becoming increasingly sophisticated and knowledgeable about branded products. Advertising and
the media allow companies to communicate with consumers in many different ways and therefore
brand propositions are now a part of daily life.
Foreign brands remain relatively powerful in the regional markets, especially in clothing and personal
care products; but increasingly brands have to be associated with value and suggest a clear and
evident Value Proposition. Developing country consumers are turning as suspicious and
discriminating as their US and European counterparts; and indeed the learning curve and product
awareness amongst developing country consumers is evolving much more rapidly than it did with US
and European consumers in the past.
Developing country markets are difficult to forecast because of the variability of the numbers of people
living in reduced financial circumstances and the more rural aspects of population distribution.
Literacy rates are variable in many developing country countries. Income is frequently less well
distributed across the whole population than in other regions. The market also tend to be highly
regional for geographic or infrastructure reasons. A mosaic of cultures and languages in some
countries contribute to the difficulties of companies seeking to establish homogeneous brand images.
Understanding buying pattern of consumers in the regional markets is a challenging endeavour. The
developing country consumers’ lifestyle and profile is evolving rapidly for a number of fundamental
reasons:
1. Population Age Distribution, especially the population below the age of 25.
2. The rise in the self-employed and financially self-sustaining segments of the working
population.
3. The rise of the AB, C1 and C2 segments of the social groups.
4. Levels of discretionary spending amongst the urban middle classes.
5. The increase in the number of higher income households.
6. The increased consumption of technology and convenience products.
7. The rise in the use of credit and payment cards and other financial instruments.
8. The availability and cost of credit.
9. The increasing shift from price consideration to design and quality.
10. The adoption of aesthetic values and awareness of the projection of a personal image.
11. The increasingly critical evaluation of the Value Proposition of products and the Price – Value
– Functionality considerations which are in the minds of consumers.
12. The acceptance of enjoyment of luxury items and an increased willingness to experiment with
branded products.
13. The acceptable of product obsolescence and the dictates of what is, and what is not,
perceived as being fashionable.

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By contrast there are factors which tend to differentiate, and often limit, many developing markets:

1. The relatively high portion of disposable income spent on Food and Housing.
2. The relative pricing of branded products.
3. The effectiveness and physical distribution of retailers, especially in large countries with
limited infrastructure.
4. The pressure on the gross margins and therefore the profitability of the entire supply and
distribution chain.
5. The difficulty for large scale retail operations and multiples to realise a good level of
profitability.
6. The national shopping habits of consumers which sometime inhibit the impulse buying of
products.
7. The influence of family and cultural imperatives on the younger consumer age groups whom
tend to represent the major segment of the brand market.
8. Consumer attitudes and influences when shopping as a family group as opposed to shopping
individually or with peer group.

Consumer Attitudes and Perceptions which impact Brands
In most developing markets there are certain events, attitudes and preferences which impact on the
purchase of branded products.
1. Shopping habits and the method of shopping.
2. The role of matriarchal and patriarchal societies.
3. Special event purchases. The purchase of products for cultural, family and special events is
more important in certain markets.
4. The relative trust in local brands. There is a substantial degree of trust and confidence in local
brands.
5. The relative perception that foreign brands are of a higher quality than local brands is largely
age based. After the age of 24 this perception of the superiority of foreign brands rapidly
diminishes.
6. The relative effect of socio-economic groups and educational levels on brand perceptions.
7. The relative average spending during shopping trips. Younger demographics spend more per
trip than older demographics.
8. The relative average frequency of shopping trips. Younger demographics shop more
frequently than older demographics. Up to 24 years of age the shopping frequency is likely to
be once every 4 weeks, whereas this reduces after 25 years to once every 6 weeks, and
reduces further as age increases.
9. The age group of consumers. Whereas the younger demographics believe that local brands
can compete effectively with foreign brands they nonetheless feel that foreign brands offer
other benefits.

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10. The use of the products:-

% Usage & Purpose of purchases

Market

%

%

%

%

%

%

%

%

Special occasion

Home & Casual

Everyday

Work

Social & Family

25 + Years old

Special occasion

Home & Casual

Everyday

Work

Social & Family

< 19 & 19-24 Years old

%

%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

Usage & Purpose of purchases is assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above is derived
from statistically accurate social / income group, and full age spectrum, surveys.

11. Perception of Designer –v- Standard / High Street Brands. In developing markets there are
growing perceptions that Designer Brands do not offer any particular quality benefit over
Standard / High Street Brands.
12. There is a general dislike of Internet shopping in developing countries.

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13. In urban areas, amongst the middle classes, 40% of consumers were aware of brands from
newspapers, 25% of consumers were aware of brands from magazines, and 23% of
consumers were aware of brands from Television and Films.
14. Celebrity endorsement

Celebrity endorsements in certain countries are usually limited to local brands or certain types
of international brands, namely, sportswear, denim, and youth casual wear.

Celebrity endorsement
Celebrity endorsement (Actors / Sports stars / Models / Movies Stars) importance is assessed
during Consumer Surveys when consumers were asked specific psychometric questions
which tested and cross-checked the issues mentioned here. The data above is derived from
statistically accurate social / income group, and full age spectrum, surveys.

Market

Celebrity

Celebrity

Endorsements

Endorsements

irrelevant

important

%

%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

Celebrity endorsements were assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above is derived
from statistically accurate social / income group, and full age spectrum, surveys.

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Market

%

%

%

%

%

%

%

International Brands

Local Brands

Planned Buying

Impulse Buying

Convenience

Brand name

Quality & Design

Value

Price

Relative Ranking Criteria and Consumer Habits for Product Purchases

%

%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

Purchasing Criteria and Habits are assessed during Consumer Surveys when consumers were asked
specific psychometric questions which tested and cross-checked the issues mentioned here. The
data above is derived from statistically accurate social / income group, and full age spectrum,
surveys.

Brand Selection
Consumers who purchase products from Exclusive brand outlets tend to visit the store specifically
because they are attracted to that brand, not for reasons of brand comparison.
In multi-brand outlets the majority of women select and purchase a particular brand because of the
‘shopping experience’. Overall preference for one brand over another is based on the ‘shopping
experience’ generated by the chosen brand.

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Price over Brand Loyalty amongst Buyers
When shopping, price is the main consideration for young buyers and this extends to other
generations. Young buyers are not as brand loyal as their parents, with generally less than 50%
indicating brand loyalty as a major factor. There is an opportunity for more in-store marketing and
promotions as 25-40% of young buyers indicating that in-store promotions do drive purchases. In
addition a significant percentage of younger buyers are influenced by store merchandising and
displays.

Market

%

%

%

%

%

%

%

%

%

Promotional Staff

Product Packaging

Store Merchandising

Press Advertising

In Store Promotions

Presents

Loyalty Card

Advertising offers

Brand Loyalty

Price

Purchase Drivers for Buyers

%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

Purchase Drivers are assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.

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Domestic Brands -v- Foreign Brands

Markets

%

%

%

%

%

%

%

%

%

Depends on the Brand

Foreign Brands are Not of a Higher Quality
than Domestic Brands

Foreign Brands are of a Higher Quality than
Domestic Brands

Do Not Trust Domestic Brands Strongly

Trust Domestic Brands Strongly

25 + Years old

Depends on the Brand

Foreign Brands are Not of a Higher Quality
than Domestic Brands

Foreign Brands are of a Higher Quality than
Domestic Brands

Do Not Trust Domestic Brands

Trust Domestic Brands Strongly

< 19 & 19-24 Years old

%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

Brand Perceptions are assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.

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What do consumers want in a branded product?

Markets

%

%

%

%

%

%

Other

Promotions

Customer Service

Location

Atmosphere

Design

Price

In developing countries there is rapidly growing youth population with a high level of education and
exposure to global imagery. This demographic is particularly susceptible to brand propositions. Thus it
is interesting to analyse the consumer needs of this demographic, as this will be the prime target for
any new brand.

%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

Branded products are assessed during Consumer Surveys when consumers were asked specific
psychometric questions which tested and cross-checked the issues mentioned here. The data above
is derived from statistically accurate social / income group, and full age spectrum, surveys.

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What Do Consumers Want?
This is the perennial question with no ready answers. For many people the answer may simply be to
purchase brands which can be afforded on their budget. That mean a convenient and comfortable
location to spend their money where they believe they will get value.

Why do retail brands attract consumers?
Which brand attributes were the most important to the customers?
The survey data shows the most important factors in determining store preference, i.e. which retail
brand consumers patronise when shopping). As can be seen the main factor was price, followed by
design (i.e. style and trends). What this means for the store is clear product displays, pricing, and
merchandising; together with a sufficient inventory.

Markets

%

%

%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

376

%

%

%

Other

Promotions

Customer Service

Location

Atmosphere

Design

Price

Whilst is may be considered that media advertisements would influence consumers, in fact this was
not the case as some retailers use substantially less media advertising than others. What was evident
was that in-store promotions frequently play an important role. Survey data suggests the following:-

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3 Suisses International Group - France

What can National brands do to counter the established Global brands?
There is little that any regional brands can do to counter the European and US brands. The reasons
for this the brand equity of the established brands and the fact that these brands are so entrenched in
the global market that it would be both expensive and ultimately counter-productive for any newcomer
to attempt to overturn the apple cart.
To counter the global brands a newcomer will have to succeed in each of the following areas:

Product Price

Product Design

Store Atmosphere

Store Location

Store Service

Product Promotions

The global players have spent decades working on these areas, and many of the global players have
had only marginal success. The marginality of their success is measured in their Return on
Investment, which has been only moderate in the past, and had indeed shown decline since 2008.
For regional brands to succeed they will need to re-think the traditional brand retail model.

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How can National brands do better than the Global brands?
It is not possible to speculate how companies may produce better designs. The experience is that
many national designers are greatly influenced by US and European design concepts. Of course the
only reason that such designers are successful is because there is consumer demand for their
designs; ergo they have to produce US and European styles in order to succeed. The global brand
managers use designers to create the consumers’ perception of what is, and what is not, desirable. In
this respect the consumer is very malleable and is sufficiently neurotic to believe that this year ‘green
is the new black’ or ‘brown is the new chique’. One can never under-estimate the style sense of the
consumer, or over-estimate the ability to ability brand managers have in manipulating a gullible
customer base.
The question then is what regional brands can do to be better than the global brands. Once again one
returns to the consumer.

Product Price. The major high street brands have firm control of product pricing levels.

Product Design. The major high street brands decide themselves on what is desirable at any
particular moment in time.

Store Location. The major high street brands have the market power to command the prime
locations.

Product Promotions. The major high street brands have the market power to beat any
competitor in promotional activity.

Store Atmosphere. New brands can compete here by catering to specific consumer
demographic and market segments.

Store Service. New brands can compete here by catering to specific consumer demographic
and market segments.

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Novel marketing methods to distinguish oneself from the competition
Brand designers in the same industry generally use similar marketing methods to reach customers.
How can brands and designers get creative and use unconventional marketing methods to distinguish
their business from the competition?
This is specifically an area where new brands can start to compete with the tired marketing tactics
used by the major high street brands. There are a number of ways in which new entrants to the
market can change the interface between brand and buyer; and these will inevitable depend on the
segmentation of the customer base to achieve a more friendly interaction with the customer.
The most cost-effective way of improving interaction with customers is to use new technology to build
databases on customers, to better interact with customer in-store, and as a means of communications
with customer to encourage them to visit stores.
RFID chips in Store Loyalty Cards
Most women carry a purse full of store loyalty cards, and these may or may not encourage the
consumer to return to a particular store. However the inclusion if a RFID chip in the card will allow
store to use a range of customer interface procedures when customer return to the store.
For example, an RFID chip will allow the customer to be identified as she enters the store and then a
series of screen displays using an interactive Avatar could engage the customer in conversation using
voice recognition software.
This conversation would use that customer previous purchases and choices as point of conversation.
Screens would be placed at various locations in the store and the dialogue could continue and also
direct the customer to particular products and promotional offers.
“Hallo Jane, welcome back. If you would prefer me not to help you please say -Yes- now.”
“OK. Can I show you some of our special offers in your size?”
“How did you like the skirt you bought the last time you were here?”
When two customers are within the same range of the same Avatar, the Avatar could introduce one
customer to the other.
“Jane, can I introduce you to Betty? She has been a customer here for over two years.”
“Ladies, did you know that we have a special offer this week on jeans. You will find them in
the next section beside the changing cubicles.”
The use of automated systems based on customer identification would potentially enhance the
‘shopping experience’ for the buyer and at the same time allow the collection of valuable market
intelligence.
Special Occasions
Small brands are more flexible in their operations and they are more able to interact with specific
customer segments. By matching specific customer segments with specific product offering and
special promotions a retailer can attract customers in a much more effective way than any major high
street retailer.
By building up consumer contact lists, categorised by demographic and social groupings, products
could be promoted to these customer segments through special occasions (during weekends or
evenings) where specific product ranges could be presented. The product ranges could then be
maintained through online marketing.
Spontaneous Eventing
The most profitable and dynamic customer segment tends to be the under 24 year group. This
demographic could be attracted to spontaneous events held in the retail premises or in local clubs or
other locations. These events would combine a social occasion with the promotion of particular
product offerings. Such events would be announced by mobile telephone messaging at the last
moment and would be intended to divert young people from their usual social haunts to the event.

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One would build into the system ‘exclusive’ events for high spending customers and these would
involve musicians, local celebrities or special guests. There would be amongst the general customer
base a desire for inclusion into this ‘inner circle’.

There are many similar ways in which a small brand can outmanoeuvre the larger, more bureaucratic,
brands.

Unique Brand Offerings
“A unique brand offering attracts more attention and results in more sales” is a reasonable
assumption; however there is nothing unique in the industry.
One might imagine that the use of novel textiles or build-in electronics may be possible; however the
fact is that if there was any viable possibility for such innovations they would already have been
seized upon by the major brands.
Gimmicks and gadgets tend to devalue the long-term image of brands and they should be avoided.

Retailers

Average Brands

Good Brands

Excellent
Brands

Unspecified

%

%

%

%

Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

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New and Untapped Market Demand
In the developing regions the new and untapped markets tend to be in the less affluent and rural parts
of the developing countries. Unfortunately this population has little disposable income to spend on
branded products.
There is no new or untapped market demand available to overseas brands in developing regions.
What local and segmented demand for products which exists in each country is catered for by local
entrepreneurs offering discount products. Each market has its own domestic brands which cater for
the middle price range products. Overseas brands have high overheads and cannot compete in the
lower end of the market and are therefore limited to a relatively small part of the overall product
market.

Niche Markets
There are niche markets, niche re-vitalisation and niche development; and there is always some
opportunities in each area.
Geographic Niches
Districts with limited competition often provide strong retail niches where it is very easy for shoppers
to find a retail brand locations isolated from competitors. Downtowns areas are often available for
strong niche locations. Niche locations can also provide cost advantages because retail space is
usually affordable and staff wage expectations are lower.
Customer Segment & Demographic Niches
The identification of customer segment niches requires local knowledge. The possibilities include: Ethnic demographics
 Office workers
 Older customers segments
 Sports enthusiasts
 Students
 Tourists

Product or Service Niches
Product or service niches are usually concerned with the special needs or aspirations of particular
consumer groups. Some examples would be: Add-ons like jewellery products or cosmetics
 Exclusives & Limited editions of products
 Factory outlets or value retailing
 Product customisation
 Joint promotions with other retailers or service providers
 Special product types
 Special Services like home visits and personal shoppers

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Brand Superiority
Brands have to offer potential buyers as many benefits as possible; especially, product superiority,
product differentiation, or a very strong brand image or heritage.
New brands and newcomers are limited in the benefits they can offer. The democratisation of the
luxury brands and their general availability (if not financial accessibility) means that the bar has been
raised for all the middle ground players. Thus Product Superiority and Product Differentiation are now
perceived by consumer as being the preserve of the luxury brands. In general this also applies to
Brand Image and Brand Heritage.
Thus is it increasingly difficult for High Street brands to offer their customers anything other than the
things being sought by the average retail customer. Those brand benefits are generally regarded as
being:

Product Price

Product Design

Store Atmosphere

Store Location

Store Service

Product Promotions

The High Street brands are thus limited to offering a lower product price, a better store atmosphere,
better store service, and a more convenient store location. The benefits of design and promotions are
transitory and very variable.

Building Heritage Brands
The cost of doing a good job in Brand Building and Design is not necessary any more than the cost of
producing mediocre brands and designs.
The building of a heritage brand always starts with a brand name which has a sufficient resonance to
be able to persuade consumers that it has sufficient weight to carry such a brand image.
For developing country companies it will be necessary to buy an existing name and convert that into a
brand image. To be a heritage name it must have resonance in Europe and the USA and this means
that the name must be widely known in Europe and the USA.
Once a suitable name has been purchased then a developing country company can use the normal
brand creation tools to build the name into a brand.

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Brand Resonance

Building a strong brand uses a sequence of steps, in which each step is dependent on the success of
the previous step such as. These are as follows:1.
2.
3.
4.

Brand identity. This needs to be specific and clear.
Brand meaning. What does the brand do for the consumer?
Brand responses. How do consumers perceive and react to the brand?
Brand relationships. What connections does the brand have and how does it connect with the
consumer?

The implementation of these steps, essential in the creation of the best brand identity, brand meaning,
brand responses, and brand relationship, is a complicated and difficult process. The components of
the process involve the following concepts:Brand Salience relates to aspects of the awareness of the brand, for example, how often and easily
the brand is evoked under various situations or circumstances.
Brand Meaning is made up of two major categories of ‘brand associations’ that exist in customers’
minds related to performance and imagery, with a set of specific subcategories within each. These
brand associations can be formed directly (from a customer’s own experiences and contact with the
brand) or indirectly (through the depiction of the brand in advertising or by some other source of
information, such as word of mouth). These associations serve as the basis for the positioning of the
brand and its points-of-parity and points-of-difference. Creating strong, favourable, and unique
associations and the desired points-of-parity and points-of-difference can be difficult for marketers,
but essential in terms of building brand resonance. Strong brands typically have firmly established
favourable and unique brand associations with consumers.
Brand Responses refers to how customers respond to the brand and all its marketing activity and
other sources of information that is what customers think or feel about the brand. Brand responses
can be distinguished according to brand judgments and brand feelings, that is, in terms of whether
they arise from the “head” or from the “heart.”
Brand Judgments focus on customers’ personal opinions and evaluations with regard to the brand.
Brand judgments involve how customers put together all the different performance and imagery
associations of the brand to form different kinds of opinions.
Brand Feelings are customers’ emotional responses and reactions with respect to the brand. Brand
feelings also relate to the feelings that are evoked by the marketing program for the brand or by other
promotional means.
Brand Resonance refers to the nature of this relationship and the extent to which customers feel that
they connect with a brand and feel “in synchronization” with it. With true brand resonance, customers
have a high degree of loyalty marked by a close relationship with the brand such that customers
actively seek means to interact with the brand and share their experiences with others.
The importance of the brand resonance model is in the checklist it provides for brand building. It
provides a basis by which brands can assess their progress in their brand building efforts as well as a
guide for marketing research initiatives. Brands must have a Duality. That Duality is the brand’s
connection with the Consumer’s Head and Heart. One important point reinforced by the model is that
a strong brand has such a duality. A strong brand appeals to both the head and the heart. Strong
brands blend product performance and imagery to create a rich, varied, but complementary set of
consumer responses to the brand.

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Brand Persistence
Brand Persistence or Success is a basic matter of capturing a sufficient customer base or brand
following to sustain the brand over a period of time. Each year there are hundreds of brands
introduced to the market; only a limited number survive 3-5 years, and only a fraction survive for more
than 5 years. The lifecycle of a brand depends on the professionalism and determination of the brand
managers.

Capturing a customer base
Capturing a customer base requires a very efficient and co-ordinated marketing effort to address the
expectations of existing customers. Essentially this is a marketing task to offer the customer base a
greater number of relevant purchase opportunities as opposed to ineffective purchase opportunities,
and greater number of competitive product offers as opposed to undifferentiated product offers. The
target customer base needs to be assured that they will get the product and services they expect from
the brands they value the most.
a. Defining the target audience.
Who: Segment the target audience as precisely as possible
Where: The marketing mix has to be fined tuned to each segment
How: Audience management through multiple communications channels
Push: Prioritize and Filter product and promotional management tactics
Pull: Product Design, Buying Experience, Store Design, Point of Sale, Inventory management
b. Engaging the target audience
Value Proposition
Product Pricing
Product Design
Store Experience
c.

Converting the target audience
Predatory Pricing
Tactical Marketing
Tactical Advertising
Tactical Offers & Promotions

d. Strategy
Strategic analysis of customer expectations
Strategic blueprint to meet the customer expectations
Strategic Business Plan
Strategic marketing objectives
e. Focus
Focus on the customer base segments which meet the profit objectives of the brand
Focus on realistic marketing goals
Focus on the medium and long term development of the brand
f.

Monitor
Seek and automate customer base feedback
Formalise data collection and collation
Monitor customer attitude and perceptions
Automate the systems

g. Communicate
h. Create value
i. Database management and systems automation
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Expand the customer base
In order to optimize the value of the customer base, brands are required to constantly be in a process
of re-attracting, re-engaging and re-converting their current customer base to leverage latent value.
Re-acquisition processes (acquiring them in another segment, acquiring them in a new channel,
broader share of wallet) drive cross-sell and up-sell.
It may be a basic concept that companies need to have single view of the customer across the
enterprise—the reality is that today, it is not enough. One needs a broader view. Not just across
one’s own systems but with supply partners and marketing partners. Offers need to be consistent
across channels and retail vehicles, even ones outside the brand’s usual sphere.
To drive cross-sell and up-sell one needs to understand customer characteristics and propensities—
insights to customer segments. Expectations may be high because of the brand’s pre-existing
relationship with them.
Once one has the marketing mix aligned with the ability to listen and respond to the customer base,
one then has to apply the right insights to create the best and most relevant product offerings.
Optimized engagement with the customer base and the combination of the right offer with the right
marketing provides consistency with one’s customers and this helps create an on-going dialogue
across channels.
One needs to respond in real time however the consumer come to the brand—whether at a point of
sale, entering the store, online, promotion, etc. Whether one’s primary metrics are RFM, Share of
Wallet or lifetime value, effective feedback can help one track and optimize performance on the
segment level.
Addressable Advertising: Brands cannot chase everyone, one needs to focus on those consumers
who are most relevant to one’s business, and one needs to stop wasting money on those consumers
who are not relevant.

Preserve the customer base
Valuable customers are the lifeblood of the brand with whom they choose to do business. Savvy
consumers sense that companies generally treat their potential customers better than their current
customers. They feel like they deserve to be recognized and rewarded for their loyalty. There are
specific ways leading companies consistently treat and engage their customers in the way they
expect.
Customer loyalty is born when companies fulfil their brand promise or value to their customers.
Additionally, companies that are ranked highest in customer satisfaction employ additional initiatives
that specifically cultivate loyalty and customer advocacy, whether it’s a point or reward system or
special access to exclusive events or benefits, or just something as basic as having their preferences
acknowledged and honoured.
The lifecycle is entirely interdependent. Retention efforts first start with strong acquisition. One needs
to attract the right people in the first place. Once one has captured a customer, the proper
maintenance is essential. One starts building their loyalty habit in the very first interactions with the
brand. A strong cross-enterprise single view of the customer (recognizing, learning and remembering)
can ensure that in their next interaction, whatever channel they chose to engage the brand through,
the brand is aware of the previous interaction.
Brands need to be both reactive and proactive in their efforts to reduce attrition.

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Brand Development Opportunities
The question of whether brand managers should produce innovative new brands and designs or tap
into the potential of existing or little used brands is asked by managers in every major supplier. The
answer is that neither option is easy or affordable for the average established brand producers, let
alone a newcomer.
The global brands have thousands of brand managers seeking just these answers; however the
reality of the situation is that there is little innovation to be achieved and few brands to be re-vitalised.
Thus brand managers are left with the same tired mantra of what is ‘the new black’ and what is ‘in this
season’.

Average
Opportunities

Good
Opportunities

Retailers
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

The data above is derived from consumer surveys.

386

Excellent
Opportunities

Unspecified

3 Suisses International Group - France

Industry Checklist
Any checklist used by producers and brand managers will include some fundamental topics. These
include: product fundamentals, principles and elements of design; product options and preparation;
product selection and continuity; and consumer strategies.

How effective are the existing products
and designs in demonstrating the
potential for greater market
penetration in the market?
How well do the existing products and
design evoke the fundamentals of
product design and merchandising?
How well do the brands adhere to the
recognised principles of the products?
How well do the existing products
cover all the available options within
the product design and
merchandising?
How well developed are consumer
strategies in respect of the selection,
development, and assortment of
products?
How developed are the merchandising
strategies?
How skilled are the management and
leadership in the market?
How well do the retail management
perform in respect of leadership
strategy?
How well do the retail management
perform in respect of product strategy?
The data above is derived from trade commentary.

387

Trade Area #15

Trade Area #14

Trade Area #13

Trade Area #12

Trade Area #11

Trade Area #10

Trade Area #9

Trade Area #8

Trade Area #7

Trade Area #6

Trade Area #5

Trade Area #4

Trade Area #3

Trade Area #2

Market specific

Trade Area #1

Product Design and Merchandising

3 Suisses International Group - France

How well do the domestic brands
interpret influences on product design?
How well do the domestic brands
identify and analyse characteristics of
products and designs?
How well do the domestic brands
perform in determining product trends?
How well do the international brand
images affect the industry in the
market?
How much significance do the global
brands have in the market?
How well do the existing brands
perform in organizational and
operational factors?
How do the domestic brands use
technology in product design?
How well do the domestic brands
identify and utilize product design
concepts?

The data above is derived from trade commentary.

388

Trade Area #15

Trade Area #14

Trade Area #13

Trade Area #12

Trade Area #11

Trade Area #10

Trade Area #9

Trade Area #8

Trade Area #7

Trade Area #6

Trade Area #5

Trade Area #4

Trade Area #3

Trade Area #2

Market specific

Trade Area #1

Performance Indicators

3 Suisses International Group - France

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

Market specific

Trade Area #1

Application of Design – Performance Factors

How well do the domestic brands use
elements of design in the market?

How well do the domestic brands use
the principles of design in the market?
How well do the domestic brands use
product presentation effectively in the
market?
How well do the domestic brands use
the principles of design to enhance the
appearance of products?

Industry Performance Indicators

Market specific

How well do local entrepreneurs
recognise brands opportunities in the
market?
How good is the local knowledge and
skills of retailers in the market?
How well do local entrepreneurs use
planning and systems for brand
management in the market?

The data above is derived from trade commentary.

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Decision-making
processes to
selecting,
purchasing, and
development
brands.
Evaluating the
impact of trends
and forecasting on
consumer choices.
Determining the
criteria for products
that meet the
needs of
consumers.
Ability in planning
product mixes and
coordinating
existing product
ranges.
Analysis of the
quality of product
crafting, materials,
and design.
Analysis of the
selection and use
of products.
Evaluating apparel
care procedures.
Analysis of the
sources for
purchasing
products.

The data above is derived from trade commentary.

390

Trade Area #15

Trade Area #14

Trade Area #13

Trade Area #12

Trade Area #11

Trade Area #10

Trade Area #9

Trade Area #8

Trade Area #7

Trade Area #6

Trade Area #5

Trade Area #4

Trade Area #3

Trade Area #2

Market specific

Trade Area #1

Performance Indicators for brand selection, development, and distribution

3 Suisses International Group - France

Planning the
impact of visual
merchandising.
Planning the role
and effectiveness
of advertising on
consumer choices.
Identifying
strategies for
promoting products
and services.
Planning the
functions of the
operational and
marketing
processes.
Product displays
using the elements
and principles of
design.
Analysis of viable
merchandising
techniques.
Determine the
impact of
technology on the
marketing and
merchandising of
products.
Identify viable
markets for
products.

The data above is derived from trade commentary.

391

Trade Area #15

Trade Area #14

Trade Area #13

Trade Area #12

Trade Area #11

Trade Area #10

Trade Area #9

Trade Area #8

Trade Area #7

Trade Area #6

Trade Area #5

Trade Area #4

Trade Area #3

Trade Area #2

Market specific

Trade Area #1

Performance Indicators for merchandising strategies

3 Suisses International Group - France

Market Strategy Insight
Market Entry Possibilities and Criteria
The data provided by the market difficulties, market, financial and consumer analyses indicate a road
map for market entry into the countries. It is necessary not only to evaluate the short-term prospects
(1-7 years), but more importantly the medium term (7-14 years), and the long term (14+ years). More
important than the size of the market potential is the potential for the return on investment. Therefore
this section will attempt to provide a concise appraisal of the market entry possibilities and the
rationale behind those choices.

S

M

L

S

M

L

S

M

L

S

M

L

S

M

L

S

M

Product Group #7

Product Group #6

Product Group #5

L = 14-21
years

Product Group #4

M = 7-14 years

Product Group #3

Product Group #1

S = 1-7 years

Markets

Product Group #2

Market Entry Difficulties

L

S

M

L

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

 = Easy

 = Neutral

 = Difficult

Market Entry Difficulties refer to the ease of entry to the market, the potential for direct investment and
the regulatory environment for the products and the operation of a business.

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S

M

L

S

M

L

S

M

L

S

M

L

S

M

L

S

M

Product Group #7

Product Group #6

Product Group #5

L = 14-21
years

Product Group #4

M = 7-14 years

Product Group #3

Product Group #1

S = 1-7 years

Markets

Product Group #2

Market Potential

L

S

M

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

 = Growth

 = Static

 = Decline

The market potential is a function of market size, disposable income and propensity to consume. In
some countries, notable China, there is demographic dysfunction due to the one child policy and this
has created a serious problem with standard distribution of the population. Essentially in China there
are fewer females and there is an aging population. Both these factors in China will impact women’s
fashion products.

393

L

3 Suisses International Group - France

S

M

L

S M

L

S

M

L

S

M

L

S

M

L

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

 = Growth

 = Industry Averages

394

 = Decline

S

M

Product Group #7

Product Group #6

Product Group #5

L = 14-21
years

Product Group #4

M = 7-14 years

Product Group #3

Product Group #1

S = 1-7 years

Markets

Product Group #2

Financial Potential

L

S

M

L

3 Suisses International Group - France

Markets

S

M

L

S

M

L

S

M

L

S

M

L

S

M

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

 = Growth

 = Industry Averages

395

 = Decline

L

S

M

Product Group #7

Product Group #6

Product Group #5

L = 14-21
years

Product Group #4

M = 7-14
years

Product Group #3

Product Group #1

S = 1-7 years

Product Group #2

Consumer Potential & Attitudes

L

S

M

L

3 Suisses International Group - France

Relative Return on Investment by Market Area : 1-14 years
The data provided by the market situation, overall market forecasts, financial and consumer analyses
plotted against the likely investment costs in each area in the short-term (1-7 years), the medium term
(7-14 years).
Year
Markets

1

2

3

4

5

6

7

8

9

10

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

The data above is derived from relative product, market and financial analysis.

396

11

12

13

14

3 Suisses International Group - France

Relative Return on Investment by Product Category
The data provided by the above analyses is used to provide a breakdown of the potential of Return on
Investment for each product category for each market in the short-term (1-7 years), the medium term
(7-14 years).

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

The data above is derived from relative product, market and financial analysis.

397

Product Group #15

Product Group #14

Product Group #13

Product Group #12

Product Group #11

Product Group #10

Product Group #9

Product Group #8

Product Group #7

Product Group #6

Product Group #5

Product Group #4

Product Group #3

Product Group #2

Product Group #1

Relative Return on Investment by market for Product Groups

3 Suisses International Group - France

%

%

%

%

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

The data above is derived from the opinions of the trade and retail experts in each market.

398

Franchising via
National Distributor

Franchising via
Sole Investor

Franchising via
individual
franchisers

Promote brand
through
wholesalers

Brand owned retail
chain

Opinions of the trade and retail experts on introducing new brands

%

3 Suisses International Group - France

399

SECTION 3
Market Research
for
3 Suisses International Group
Markets
in
France

3 Suisses International Group - France

MARKET RESEARCH COVERAGE
Markets & Products covered
The report will give market data for each of the below Product and Market Sectors, by year. Historic
data from 1997 and Forecast data to 2028. Data is given for the France National Market plus market
data for each major City in France.

Product Sectors
This database scans all the Retail Sectors, and certain Service Industry Sectors to identify all those
product areas which represent the markets for 3 Suisses International Group. These are existing
markets and potential markets for future development.

Motor vehicle & parts dealers
Furniture & home furnishings stores
Electronics & appliance stores
Building material & garden equipment & supplies dealers
Food & beverage stores
Health & personal care stores
Gasoline stations
Clothing & clothing accessories stores
Sporting goods, hobby, book & music stores
General merchandise stores
Miscellaneous store retailers
Non-store retailers

401

3 Suisses International Group - France

Survey Data
The investigation consisted of field surveys and consumer interviews.
Discussions with the local experts covered the following issues based on the interviewees’ personal
or corporate experiences. Interviews were conducted with various industry experts.

Retail experts at Trade Magazines or other Media were interviewed regarding the existing market
conditions for the brands, the existing penetration of retail brands, and the future prospects.

Trade Wholesalers, Brand Managers, Trade Buyers, Retailers, In-store Retail Negotiators were
interviewed.

The surveys of Consumers and Retail Customers were done to analyze overall retail issues, Brand
awareness and attitudes towards brands and imports, criticisms of existing retailers, methods for
retailers to improve service, et cetera. The Surveys covered Retail Store Customers and Consumers
of products and services.

Consumer Surveys
Surveys of Consumers and Buyers:
Consumer Surveys
Buyers & Consumers

Consumer Surveys Decision Makers

Competitors

Consumer Surveys on Competitors

Operations

Consumer Surveys on Operations

Products
Trading Area

Consumer Surveys on Products
Consumer Surveys for the Trading Area

402

3 Suisses International Group - France

Distribution Channel Surveys
Surveys of Supply Chain & Distribution Channels Members:
Distribution Channel Surveys
Buyers & Consumers

Distribution Channel Surveys Decision Makers

Competitors

Distribution Channel Surveys on Competitors

Operations

Distribution Channel Surveys on Operations

Products
Trading Area

Distribution Channel Surveys on Products
Distribution Channel Surveys for the Trading Area

Decision Makers Surveys
Surveys of Trade and Consumer Decision Makers:
Decision Makers Surveys
Buyers & Consumers

Decision Makers Surveys

Competitors

Decision Makers Surveys for Competitors

Operations

Decision Makers Surveys for Operations

Products
Trading Area

Decision Makers Surveys for Products
Decision Makers Surveys for Trading Area

Industry Performance
Surveys of Industry & Retailer Performance:
Industry Performance
Buyers & Consumers

Industry & Retailer Performance Surveys Decision Makers

Competitors

Industry & Retailer Performance Surveys on Competitors

Operations

Industry & Retailer Performance Surveys on Operations

Products
Trading Area

Industry & Retailer Performance Surveys on Products
Industry & Retailer Performance Surveys for the Trading Area

403

3 Suisses International Group - France

Products
Product Group #1
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #8
Product Group #9
Product Group #10
Product Group #11
Product Group #12
Product Group #13
Product Group #14
Product Group #15

Operations
1.

Brand Management

2.

Product Management

3.

Marketing & Selling Activity

4.

Store Presentation & Merchandising

5.

Product Offering Specifications & Characteristics

6.

Product Quality Control

7.

Design Research & Development

8.

Customer Handling

9.

Product Sourcing & Control

10.

Financial Controls

11.

Staff Training / Control & Relations

12.

Product Throughput Capacity & Control

13.

Supply System Control & Development

14.

Distribution Control

15.

Product Handling Systems & IT

404

3 Suisses International Group - France

Buyers &
Consumers
1. Wholesalers
2. Trade Buyers
3. Retailers
4. Consumers
5. Consumers Age: <19
6. Consumers Age: 19-24
7. Consumers Age: 25-34
8. Consumers Age: 35-44
9. Consumers Age: 55-54
10. Consumers Age: 55-64
11. Consumers Age: 65+
12. Consumers Social Group: AB
13. Consumers Social Group: C1
14. Consumers Social Group: C2
15. Consumers Social Group: DE

Trading Area
1
2

France
Île-de-France

3

Rhône-Alpes

4

Provence-Alpes-Côte-d'Azur

5

Nord-Pas-de-Calais

6

Pays-de-la-Loire

7

Aquitaine

8

Midi-Pyrénées

9

Nord

10

Languedoc-Roussillon

11

Centre

12

Lorraine

13

Paris

14

Bouches-du-Rhône

15

Picardie

405

3 Suisses International Group - France

Retail Competitors
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

406

3 Suisses International Group - France

Geographic Coverage
The report will provide data for France National market, plus market data for the largest City and
Town in France.
See: http://www.dg-di.eu/BASE_FOLDERS/World_Cities/FR.html

Financial data
The databases give Financial data and Margins by year Historic: 1997 to Current, and Forecast to
2028.

Financial Data Scenarios
There are a large number of Financial Scenarios available, for example, the Median Scenario:Median Financial Scenarios

Financial Margins & Ratios Data Scenarios
There are a large number of Financial Margins & Ratios available, for example, the Median Scenario:Median Financial Margins & Ratios

407

3 Suisses International Group - France

France
Market Research
General Contents
This report provides users with commercial intelligence on the markets and industry in the national
market, product sectors, financial and industry data on each of the Towns and Cities. There are a
large number of towns covered in this report for which overall market data is provided. Detailed
market and product data is given for End User significant towns and for End User significant Product
Launch towns. Detailed financial data is given for commercially significant towns and for commercially
significant Product Launch towns.
This report is formatted to give both a narrative description of the various matters covered as well as
provide readers with the ability to directly use the Chapters (via Microsoft Word or compatible word
processors) to produce their own reports and documentation. Experienced users will be able to use
the spreadsheet and databases to generate highly detailed narrative reports, charts and graphics - as
well as sophisticated business and commercial forecasts and models. The databases are provided in
both Excel spreadsheets and an Access database. Explanatory notes are provided as word processor
documents or in PDF formats.
The narrative in this report is necessarily illustrative in its terminology and seeks to provide a basic
degree of business logic and theory which indicates the rational applied in the forecasting and
modelling methodology.
The databases provided are specifically designed to provide users with a uniform and consistent
numeric measure of both (normally) quantifiable values as well as conceptual factors which are
(usually) only capable of qualification. Experienced users will know how to apply forecasting and
modelling software to the numeric data provided to generate highly detailed and discrete business
planning models. The databases provided in this report can be used directly with databases on other
product, markets and industries in other countries. The databases are specifically designed to be
transnational, currency neutral, inflation and purchasing parity adjusted, product parity and product
equivalent adjusted, opportunity cost adjusted, and numerically compatible; they all can be linked or
merged programmatically in business planning models to provide multi-national and multi-level
analysis.

408

3 Suisses International Group - France

Market Research Report Table of Contents
France
For a detailed Table of Contents for each chapter, database or spreadsheet: click on the Blue
headings shown below. This will open a page in your browser which fully specifies the contents of
that heading. These are links to the web site and they open the section or chapter in question.
Please also see the Notes to the contents: Notes
Within each heading there are links with detailed descriptions and explanation of the contents; these
can be opened when the link is clicked.

Core National Database
Chapters

63

Pages

c. 1150-3225

Open the Core Database here

Volumes

DVDs

Diagrams, Maps

Spreadsheets

& Illustrations

& Databases

c. 260

c. 6440-9660

Contents depends on the number of significant (France) Towns and Cities

Sections
Preface

Chapters
Databases
Financials
Industry
Markets
Products
Grids

Reference
Contents
Legend
Cities
Countries

409

3 Suisses International Group - France

Chapters
Chapter 1

ADMINISTRATION

Chapter 2

ADVERTISING

Chapter 3

BUYERS – COMMERCIAL OPERATIONS

Chapter 4

BUYERS – COMPETITORS

Chapter 5

BUYERS – MAJOR CITY

Chapter 6

BUYERS – PRODUCTS

Chapter 7

BUYERS – TRADE CELL

Chapter 8

COMPETITIVE INDUSTRY ANALYSIS

Chapter 9

COMPETITOR ANALYSIS

Chapter 10

COUNTRY FOCUS

Chapter 11

DISTRIBUTION

Chapter 12

FINANCIAL - BUSINESS DECISION SCENARIOS

Chapter 13

FINANCIAL - CAPITAL COSTS FINANCIAL SCENARIOS

Chapter 14

FINANCIAL - CASHFLOW OPTION SCENARIOS

Chapter 15

FINANCIAL - COST STRUCTURE SCENARIOS

Chapter 16

FINANCIAL - HISTORIC INDUSTRY BALANCE SHEET

Chapter 17

FINANCIAL - HISTORIC MARKETING COSTS & MARGINS

Chapter 18

FINANCIAL - INVESTMENT + COST REDUCTION SCENARIOS

Chapter 19

FINANCIAL - MARKET CLIMATE SCENARIOS

Chapter 20

FINANCIAL – MARKETING COSTS

Chapter 21

FINANCIAL - MARKETING EXPENDITURE SCENARIOS

Chapter 22

FINANCIAL – MARKETING MARGINS

Chapter 23

FINANCIAL - STRATEGIC OPTIONS SCENARIOS

Chapter 24

FINANCIAL - SURVIVAL SCENARIOS

410

3 Suisses International Group - France

Chapter 25

FINANCIAL - TACTICAL OPTIONS SCENARIOS

Chapter 26

GEOGRAPHIC DATA

Chapter 27

INDUSTRY - NORMS

Chapter 28

MAJOR CITY MARKET ANALYSIS

Chapter 29

MARKET CAPITAL ACCESS SCENARIOS

Chapter 30

MARKET CASHFLOW SCENARIOS

Chapter 31

MARKET ECONOMIC CLIMATE SCENARIOS

Chapter 32

MARKET INVESTMENT + COSTS SCENARIOS

Chapter 33

MARKET MARKETING EXPENDITURE SCENARIOS

Chapter 34

MARKET RISK SCENARIOS

Chapter 35

MARKET STRATEGIC OPTION SCENARIOS

Chapter 36

MARKET SURVIVAL OPTION SCENARIOS

Chapter 37

MARKET TACTICAL OPTION SCENARIOS

Chapter 38

MARKETING EXPENDITURE -v- MARKET SHARE

Chapter 39

MARKETING STRATEGY DEVELOPMENT

Chapter 40

MARKETS

Chapter 41

OPERATIONAL ANALYSIS

Chapter 42

OVERSEAS DEVELOPMENT

Chapter 43

PERSONNEL MANAGEMENT

Chapter 44

PHYSICAL DISTRIBUTION + CUSTOMER HANDLING

Chapter 45

PRICING

Chapter 46

PROCESS + ORDER HANDLING

Chapter 47

PRODUCT ANALYSIS

Chapter 48

PRODUCT DEVELOPMENT

Chapter 49

PRODUCT MARKETING FACTORS

Chapter 50

PRODUCT MIX

411

3 Suisses International Group - France

Chapter 51

PRODUCT SUMMARY

Chapter 52

PROFIT RISK SCENARIOS

Chapter 53

PROMOTIONAL MIX

Chapter 54

SALESFORCE DECISIONS

Chapter 55

SALES PROMOTION

Chapter 56

SURVEYS

Chapter 57

TARGETS - PRODUCT + MARKET

Chapter 58

TECHNOLOGY

Chapter 59

TRADE CELL ANALYSIS

Chapter 60

URBAN COMPETITION

Chapter 61

TOWNS - FINANCIAL

Chapter 62

TOWNS - INDUSTRY

Chapter 63

TOWNS - MARKET

412

SECTION 4
Business Planning
3 Suisses International Group

3 Suisses International Group - France

BUSINESS PLANNING
Checklist
Before one can develop a realistic business plan one needs to establish the business objects and
then to produce a database with the following parameters:1. Business start-up
a. Company Law
b. Capital Requirements
2. Credit
a.
b.
c.
d.
e.

Availability of trade credit
Banking policies
Foreign Exchange regulations
Remittance of Profits
Credit data considerations

3. Employment
a. Employment contracts
b. Employment laws
4. Import of Goods
a. Quotas & Licensing
b. Prohibitions & Restrictions
c. Free imports
d. Tariff-rate quotas
e. Approvals & Inspections
5. Import Duties
a. General Rates
b. Most-Favoured Nation Rates
c. Agreement Rates
d. Preferential Rates
e. Tariff-rate Quota Rates
f. Provisional Rates
g. Preferential Duty Reductions
6. Taxes
a. Value Added Taxes, Reduced Rates, Exemptions, Rebates
b. Business Taxes, Tax Conventions, Specific Product/Trade Taxes
c. Miscellaneous Taxes
7. Product Labelling & Certification
a. Language of labels
b. Safety Certifications
c. Mark Lists
d. Labelling requirements
8. Authorities
414

3 Suisses International Group - France
a.
b.
c.
d.

Customs
Financial
Commerce
National, State, Regional, City administrations

9. Compliance
a. Tax compliance
b. Enforcement of regulations
c. Treatment of foreign enterprises
d. Corruption
10. Retailing
a. Regulations
b. Domestic Retail Development
c. Foreign Retail Investments
d. Economic & Political policies
e. Establishment of enterprises
f. Methods for Market Entry (M&A, Sole Distributor, Franchise, Local presence, etc.)
g. Consumer Markets
h. Logistics & Supply Chains
i. Retail Location & Property
j. Infrastructure difficulties
k. Transaction Costs
l. Bureaucracy
m. Distribution Channels
n. Personnel
o. Financial management
p. Availability of premises
q. Availability of services
11. Retail Demand
a. Emergence of urban middle class
b. Demand stimulation & Disposable Incomes
c. Cultural Factors and Cultural change
d. Retail outlet distribution
e. Infrastructure development
f. Fragmentation of Markets
g. Economic & Socio-cultural demarcations
h. Consumer Segments
i. Consumer Lifestyles
j. Consumer Prejudices
k. Strength of Domestic companies
l. Aggressiveness of Domestic companies
12. Retail Values
a. Growth
b. Real –v- Forecast
13. Demand Drivers
a. Supply Chain Cost reduction
b. Store Format
c. Information dissemination and reception
d. Shopping Habits
415

3 Suisses International Group - France
e.
f.
g.
h.
i.
j.
k.
l.
m.

Service provision
Customer Demand / Expectation satisfaction
Product Pricing
Retail Channel Development
Product Mix
Marketing Mix
Family size and composition
Geographic location
Regional diversity

14. Competition
a. Domestic Competition
b. International Competition
c. New Entrants
d. Retail Consolidation
e. Aggressiveness of Players
f. Bargaining Power of Suppliers
g. Bargaining Power of Buyers
h. Cost Reduction
i. Location & store siting
j. Internet
k. Payment systems
15. Market Entry Strategies & Control of Operations
a. Own Local Manufacture & Distribution & Retail Outlets
b. Own Stores
c. Joint Ventures & Mergers
d. Licensing
e. Franchising
f. Stocking Distributors
g. Sales Representation to Wholesalers
h. Direct Sales to Consumers
16. Tactics
a.
b.
c.
d.
e.
f.
g.

Control and Define Supply Chain and Distribution policies and finances
Enter smaller cities
Concentrate of younger demographics
Entrench & strengthen brand recognition
Develop Sales Channels / Internet / TV / Malls / Shopping experiences
Offer intangible benefits
Reduce Costs and Reduce Prices

416

3 Suisses International Group - France

Checklist implementation
Business Planners should input their business objectives and parameters using a database format,
for example, the ‘Business_Planning_Checklist_Retailing.xlsx’ file which is found in the Toolkit.
Basic data on Customs Tariff, Duty & Taxation levels, Import restrictions & Regulations, Shipping &
Packaging Requirements, Customs Clearance Procedures and time delays, Port of Entry data: Name,
Location, Description, Customs Handling, Storage, Transport facilities, et cetera, can be found in the
supporting documentation.
The Toolkit contains PDF files for each national market.

Advancing your Project
Once the business planner has defined the business objectives and the necessary parameters
attention can then be turned to the practical isolation of locations for retail outlets. This is necessary
irrespective of whether a decision has been made to open brand owner stores or to franchise the
brand.
Next one needs to select the target geographic areas within France; and this is done with reference to
the City and Town data in the core database. The data accessed should include:

The City or Town

Sub-divisions of the Retail Districts

Features and Characteristics of the Retail Districts

Major Malls, Shopping Centres, Retail Streets

Advertising and Marketing activities of Retailers

Demographic and Social Customer Base served

Spending Levels of consumers

Brand Preferences of consumers

417

3 Suisses International Group - France

Cashflow
The client can order Cashflow projections (as part of the After-Sales Service) once operational
parameters have been set. The operational parameters are the initial retail capital investments, store
location, overheads, staff levels, et cetera.
Cashflow projections are done using a monthly interval and will depend on which month the retail
store will open. It is not possible to produce Cashflow projections without knowledge of the Start
month and other market criteria. The first few months of sales revenue in the retailer’s business will
depend on which month a store first opens. Other items, like before start-up expenses, opening
balances, et cetera, must be known before a Cashflow projection can be made.

Cashflow Calculator

418

3 Suisses International Group - France

The Business Plan Programme
Users can produce a basic printed Business Plan if that is all that is needed. For a more detailed
Business Plan, the software will take users through a series of forms and utilities which will allow one
to specify the commercial plan objectives and the project events; one then produces a Project
database. Users can then generate an advanced Project Dialogue database which provides
detailed guidelines and a project management action plan for the country covered by the project. In
addition, if needed, users can obtain additional human resources and support services to produce an
assisted Business Plan. The software then generates a Business Plan Web which incorporates the
business plan objectives and the underlying market research findings. Finally, if needed, a modelling
level Business Plan is available, and this incorporates highly sophisticated business forecasting
components.

Business Plan: Basic
With only the market research data, users can produce a Basic Business Plan using the Word document
template which is provided.