The Retail Environment Day 2
A look at Starbucks… • 3 articles from The Oregonian • Complete the activity on the back counter
The Retail Customer • Consumer: uses the goods • Customer: buys the goods • In retail, many factors contribute to purchasing decisions • Social Class • Gender • Individuality • Needs & Wants • Keep in mind that a retailer also has needs & wants that have to be satisfied in order to stay in business. • Example: a customer may want Starbucks to keep their hot sandwiches but Starbucks has to decide if it is in line with their company goals.
Making decisions • Process of making rational decisions • 5 steps • Specify: identify what you want • Search: search for information to ensure you find what you want • Sift: examine all your options • Select: make your decision • Study: evaluate the results • RETAIL DOES NOT LIKE THIS STRATEGY!!! • If every consumer went through those 5 steps, nothing would ever get purchased!
The Retail Landscape: In-store Influences • It is not uncommon to enter a retail outlet with the intention of purchasing one thing, but leaving with something entirely different • Influences within the store affect your final decisions • Influences Include: • Point of purchase (POP) displays • Price reductions • Store layout • Stockout situations • Sales personnel
Point of Purchase (POP) Displays • Displays designed mainly to promote impulse purchases • The effectiveness of POP displays is high; gets higher depending on the location • Rear endcap 141% more effective than just on the shelf • Front endcap 162% more effective than just on the shelf • Popular point of purchase displays include: • Shelf talkers, danglers, mobiles, banners, illuminated signs, testers/samplers, floorstands, cash register units
Taco POP • Taco bell/Godzilla Promotion - 1998 • “on-site media strategy carries through with the "Find Godzilla and Win" theme in more than 5,000 Taco Bell stores nationwide. The first phase consists of point of purchase elements, including door decals, banners, ceiling danglers and mobiles, in-store standees and counter cards — all designed to create a mystery over Godzilla's whereabouts. Using die-cuts and other techniques, WCJ left blanks where Godzilla's likeness could be added after the movie's premiere.
Albertsons/State of OR • “The state of Oregon today introduced a comprehensive marketing campaign for Oregon Seafood, the first in-state component of the Brand Oregon program introduced in early 2004. The yearlong campaign will tout the quality and availability of Oregon Seafood… • Outdoor boards throughout Portland and Salem, and radio spots in the Portland market, will reinforce the campaign's Oregon Seafood theme. In addition, point-of-purchase materials will appear in the seafood sections of grocery stores throughout the state and in Portland and Salem-area restaurants.Initially, point-of-purchase materials promoting Oregon Seafood will be visible in the following stores in the Portland/Salem area: Whole Foods Market, Zupan's, New Seasons, Roth's and Wizer's, among others. Fred Meyer and Albertson's also will carry Oregon Seafood in their Portland/Salem area stores, in addition to select locations outside of Portland. A more extensive list of retail locations is available in the document titled "Participating Retailers."“
POP Activity #1 • Attached activity
Price Reductions • Price reductions and promotional deals are generally supported by point of purchase materials • Coupons, multiple-item discounts, and gifts • Signage, floor stickers