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Slide 1 ___________________________________

Establishing and Maintaining a ___________________________________


Retail Image
Retail Management: A Strategic Approach, 10th
Edition, Berman and Evans ___________________________________

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Slide 2 ___________________________________
Significance of Retail Image
 Image
 Refers to how a customer is perceived by customers and others ___________________________________
 Positioning
 Refers to how a firm devises its strategy so as to project an
image relative to its retail category and its competitors
 And to elicit a positive consumer response ___________________________________
 To succeed a retailer must communicate a distinctive, clear
and consistent message
 Once its image is established in consumers’ minds, a retailer is
placed in a niche relative to competitors
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Slide 3 ___________________________________
Elements of a Retail Image
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Slide 4 Dynamics of Creating and Maintaining a
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Retail Image
 In seconds a shopper should be able to determine a store’s
 Name ___________________________________
 Line of trade
 Claim to fame
 Price position
 Personality ___________________________________

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Slide 5 Dynamics of Creating and Maintaining a


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Retail Image (continued)
 A key goal of chain retailers, franchisors and global retailers
is to maintain a consistent image among all branches ___________________________________
 A number of factors may vary widely among branch stores and
affect the image
 Management and employee performance
 Consumer profiles
 Competitors
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 Convenience in reaching the store
 Parking and safety
 Ease of finding merchandise
 Language and cultural diversity among customers
 Quality of the surrounding area
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Slide 6 ___________________________________
Atmosphere (Atmospherics)
 The psychological feeling a customer gets when visiting a
retailer ___________________________________
 Store retailer
 Atmosphere refers to store’s physical characteristics that project an image
and draw customers
 Non-store retailer
 Atmosphere refers to the physical characteristics of catalogs, vending
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machines, Web sites, etc.

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Slide 7 ___________________________________
Visual Merchandising
 Proactive, integrated atmospherics approach to create a
certain look, properly display products, stimulate shopping ___________________________________
behavior, and enhance physical behavior

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Slide 8 ___________________________________
Elements of Atmosphere

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Slide 9 ___________________________________
Exterior Planning
 Storefront
 Includes the marquee, entrances, windows, lighting, and construction
materials
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 Marquee
 Sign that displays the store’s name
 Painted or neon light
 Printed or script
 Set alone or mixed with a slogan
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 Store entrances
 Three major decisions
 Number of entrances
 Type of entrance
 Walkway
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Slide 10 ___________________________________
Exterior Planning (continued)
 Display windows
 Two main purposes ___________________________________
 Identify the store and its offerings
 Induce people to enter

 Exterior building height


 Disguised and non-disguised ___________________________________
 Surrounding stores and area
 Presents image cues
 Parking facilities
 Can add or distract from store atmosphere ___________________________________

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Slide 11 ___________________________________
Alternatives in Planning a Basic Storefront
 Modular structure
 One piece rectangular or square that may attach several stores ___________________________________
 Prefabricated structure
 A frame built in a factory and assembled at the site
 Prototype store
 Used by franchisors and chains to foster a consistent atmosphere
 Recessed storefront
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 Lures people by being recessed
 People must walk in a number of feet to examine storefront

 Unique building design


 Draws interest by being unique
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Slide 12 ___________________________________
General Interior
 Flooring  In-store transportation
 Colors (elevator, escalator, stairs)
 Dead areas
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 Lighting
 Scents  Personnel
 Sounds  Merchandise
 Store fixtures  Price levels ___________________________________
 Wall textures  Displays
 Temperature  Technology
 Aisle space  Store cleanliness
 Dressing facilities ___________________________________

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Slide 13 ___________________________________
Allocation of Floor Space
 Selling space
 Used for display of merchandise ___________________________________
 Merchandise space
 Used to stock non-display items
 Personnel space
 Set aside for employees ___________________________________
 Customer space
 Contributes to shopping mood
 Can include lounge, benches and/or chairs
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Slide 14 ___________________________________
Allocation of Floor Space (continued)
 Planogram
 Visual (graphical) representation of the space for selling, ___________________________________
merchandise, personnel and customers
 As well as for product categories

 It lays out the in-store placement


 May be hand-drawn or computer generated ___________________________________

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Slide 15 ___________________________________
Allocation of Floor Space (continued)

Examples of Retail ___________________________________


Planograms

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Slide 16 ___________________________________
Product Grouping Types
 Functional product groupings
 Display merchandise by common end use
 Baking supplies, breakfast items, HBA, etc… ___________________________________
 Purchase motivation product groupings
 Appeal to the consumer’s urge to buy products and the amount of
time he or she is willing to spend on shopping
 Includes impulse products and other rather quick purchases
 Market segment product groupings ___________________________________
 Places together various items that appeal to a given target market
 Ethnic foods, organic foods, etc…
 Storability product groupings
 May be used for products needing special handling
 Frozen, refrigerated and room temperature sections
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Straight Traffic Pattern
 Advantages  Disadvantages
 An efficient atmosphere is  Impersonal atmosphere ___________________________________
created  More limited browsing by
 More floor space is customers
devoted to product displays  Rushed shopping behavior
 People can shop quickly
 Inventory control and
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security are simplified
 Self-service is easy, thereby
reducing labor costs
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Straight (Gridiron) Traffic Pattern

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Slide 19 ___________________________________
Curving Traffic Pattern
 Advantages  Disadvantages
 A friendly atmosphere  Possible customer ___________________________________
 Shoppers do not feel confusion
rushed  Wasted floor space
 People are encouraged to  Difficulties in inventory
walk through in any
direction
control
 Higher labor intensity
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 Impulse or unplanned  Potential loitering
purchases are enhanced  Displays may cost more

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Approaches for Determining Space Needs
 Model Stock Approach  Sales-Productivity Ratio
 Determines floor space  Assigns floor space on the ___________________________________
necessary to carry and basis of sales or profit per
display a proper foot
merchandise assortment

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Slide 21 ___________________________________
Mapping Out In-Store Locations
 Assigning departments to floors (multi-floor locations)
 Laying out individual floors
 Single level store only has to address this issue
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 Questions:
 What items?
 How should groupings be placed?


Location of impulse and convenience products?
Associated product categories aligned? ___________________________________
 Seasonal and offseason product placement?
 Space consuming product placement?
 Proximity of products displays and stored inventory?
 Shopping patterns followed by consumers?
 Overall appearance of store crowding averted? ___________________________________

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Slide 22 ___________________________________
Arrangement of Individual Products
 Last step in store layout planning
 Most profitable items and brands placed in the best locations ___________________________________
 Products can be arranged by package size, price, color, brand,
customer interest, etc…
 End-aisle display positions, eye-level positions and check-out
counter positions most likely to increase sales of individual
items
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 The least desirable display location is often knee level or ankle
level
 Continuity of locations is important
 May confuse shoppers
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Slide 23 Arrangement of Individual Products


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(continued)
 Retailers goals often differ from their manufacturers
 Latter wants to maximize their brand’s sales and push for eye- ___________________________________
level, full-shelf, end-aisle locations
 Retailers seek to maximize total store sales and profits,
regardless of brand
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Slide 24 ___________________________________
Interior (Point-of-Purchase) Displays
 Assortment display
 Exhibit a wide range of merchandise ___________________________________
 Customer is encouraged to feel, look at, and/or try products
 Fruits and vegetables

 Theme-setting display
 Depicts a product offering in a thematic manner
 Seasonal or special event
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 Ensemble display
 Complete product bundle in presented
 Steak display with mushrooms and condiments
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Slide 25 Interior (Point-of-Purchase) Displays
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(continued)
 Rack display
 Primarily functional use
 Housewares
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 Case display
 Exhibits heavier, bulkier items
 Books, prepackaged goods
 Cut case ___________________________________
 Inexpensive display that leaves merchandise in the original
carton
 Dump bin
 Sale and markdown item ___________________________________

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Slide 26 ___________________________________
Online Store Considerations
 Advantages  Disadvantages
 Unlimited space to present
assortments, displays, and
 Can be slow for dialup
shoppers
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information  Can be too complex
 Can be customized to the  Cannot display three-
individual customer dimensional aspects of
Can be modified frequently products well

 Can promote cross-  Requires constant updating ___________________________________
merchandising and impulse  More likely to be exited
purchasing without purchase
 Enables a consumer to
quickly enter and exit an
online store ___________________________________

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Slide 27 Encouraging Customer to Spend More Time


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Shopping
 Experiential Merchandising
 Convert shopping from a passive activity into a more interactive ___________________________________
one, by better engaging customers
 Food sampling

 Solutions selling
 Customer centered approach that presents solutions rather than
products
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 Home meal replacement

 Enhanced shopping experience


 Doing everything possible to make the shopping trip pleasant
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Slide 28 ___________________________________
Community-Oriented Actions
 Make stores barrier-free for disabled shoppers
 Show a concern for the environment by recycling trash and
cleaning streets
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 Support charities
 Participate in anti-drug programs
 Employ area residents
 Run sales for senior citizens and other groups
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 Sponsor Little League and other youth activities
 Cooperate with neighborhood planning groups
 Donate money/equipment to schools
 Check IDs for purchases with age minimums ___________________________________

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