Customer Service

The retailer can develop long-term relationships with their customers by offering:

Financial benefits : rebate, freegift ,redemption

Social benefits : Herbalife create a family day for their agents and customer to appreciate them

3 basic task of customer service

1)Get consumers into the store

2)Convert them into customers

3)Operate as efficiently as possible

Activity of customer service 

• Ease the potential customer to shop or learn about store offering.
• Ease transaction customer to attempt to make a purchase
• The customer satisfaction with the transaction

Customer service stopped

Transient customer 

An individual who is dissatisfied with the level of customer service offered at a store or stores and seeking an alternatives store with the level of customer service that he or she thinks is appropriate.

Common Customer Service

Pretransaction services

Provide to the customer prior to entering the store.

-Convenient hours=shopping malls 10a.m.to 10p.m.

Information aids=sales 80% to attract the customer

Transaction services

Provide to customers when they are in the store shopping and transacting business.

Credit= no interest

Giftwrapping and packaging

Personal shopping 

An individual who is a proffesional shopper performs the shopping role for another ; very upscale department and specialty stores offer personal shoppers to their clients.

Dwell time

The amount of time a consumer must spend waiting to complete a purchase .

Posttransaction services

Provided to customers after they have purchased merchandise or services.

Complaint handling , accepting merchandise return, servicing, repair and warranties , deliveries and postsale follow up.

Customer service parkson retail outlet

 

Samsung Customer Service

Store Layout and Design

There are two primary objectives of the store environment

1) Store image
How much the organization spend to get customers into the store
There are affected by such things as location, promotional activities, merchandise, cleanliness, employees, layout, lighting, and service offering

2) Space productivity 
How much is necessary to keep customers inside the store for longer periods so that we can expose them to more products,thus increasing the probability that customer purchase.

Element of the store environment (Starbucks)

Visual Communications

Retail identity- coffee shop
Graphic- many layout and image that carry many coffee icon in that shop
POS signage- christmas theme product at the end year

Store design

Exterior design-store front , logo
Ambience- the environment in that store
Lighting-is the lighting too high or too dull depend on starbucks strategy

Store planning

Space allocation - how much the space in the shop
Layout- depend on the retail strategy because starbucks is the franchise

Merchandising

Fixture selection- the types of coffee that offer and some cookies, sandwich
Merchandise presentation-outlook of the entire store
Visual merchandising- The christmas theme

Storefront design

The retailer will have the storefronts that are noticeable, memorable and easy identifiable.



This the store front of starbucks located in Midvalley megamall that we can notice it from far, identify it from far and we know the retailer offer the coffee and it is memorable , so it is a very good job for starbucks to attract the customer by their store front.

Interior Design

Focuses on two general elements

1) Finished apllied to surfaces

Flooring
Wall covering

2) Architectural shapes

Archways
Ceilings
Staricases
Sunken floor





Sound & Smell Design

Total sensory marketing

Its have effective design appeal to four of the five human senses

Sight , hearing ,smell and touch

For example , we can know from the smell that starbucks is the coffee shop and we can know the layout once we hangout there.

Promotional strategy

Element of the promotional mix

Advertising
Public Relation
Personal Selling
Sales Promotion

Advertising

Paid,non personal communication transmitted through out of store mass media by an identified sponsor.

Adv objectives for retailer

-Life short term sales
-Increase customer traffic
-Develop and reinforce a retail image
-Inform customers about goods and services and company attributes
-Ease the job for sales personnel
-Develop demand for private brand

Advantages

Attracts a large audience

Gains pass along readership (for print)

Low cost per contact

Many alternatives available

Control over message content; message can be standardized

Message study possible

Editorial content surrounds ad

Self-service operations possible

Disadvantages 

Standardized messages lack flexibility

Some media require large investments

Geographic flexibility limited

Some media require long lead time

Some media have high throwaway rate

Some media limit the ability to provide detailed information

Types of advertising .

Newspaper

Flyers

.

BillBoard

This is the example that the retailer use to advertise their product .

Public Relations

Communication that fosters a favorable image for the retailer 

-nonpersonal or personal 

-paid or unpaid

-sponsor-control or not

Publicity 

Nonpersonal form of public relations whereby messages are transmitted by mass media. The time or

space provided by the media is not paid for , and there is no identified commercial sponsor.

PR objectives for retailer

Increase awareness of the retailer and its strategy mix

Maintain or improve the company image

Show the retailer as a contributor to the public’s quality of life

Demonstrate innovativeness

Present a favorable message in a highly believable manner

Minimize total promotion costs

Advantages

Image can be presented or enhanced

More credible source

No costs for message’s time or space

Mass audience addressed

Carryover effects possible

People pay more attention than to clearly identified ads

Disadvantages

Some retailers do not believe in spending on image-related communication

Little control over publicity message

More suitable for short run

Costs for PR staff, planning activities and events

Personal Selling

Oral communication with one or more prospective customers for the purpose of making of making a
sales.

Personal selling objectives for retailers

Persuade customers to buy
Stimulate sales of impulse items or products related to customers’ basic purchases
Complete customer transactions
Feed information back to company decision makers
Provide proper levels of customer service
Improve and maintain customer satisfaction
Create awareness of items also marketed through the Web, mail, and telemarketing

Advantages

Message can be adapted
Many ways to meet customer needs
High attention span
Less waste
Better response
Immediate feedback

Disadvantages

Limited number of customers at one time
High costs
Doesn’t get customer in store
Self-service discouraged
Negative attitudes toward salespeople



Sales Promotion 

Encompasses the paid communication activities other than advertising, public relations, and personal
selling that stimulate consumer purchases and dealer effectiveness

Types of Sales Promotion 

Display
Contest
Sweepstakes
Coupons
Frequent shopper program
Samples
Prizes
Demonstration

Sales promotion objectives for retailers

The objectives a increasing the short-term sales volume, maintaning customer loyalty, emphasizing
novelty .

Advantages

Eye-catching appeal
Distinctive themes
Added customer value
Draws customer traffic
Maintains loyalty
Increases impulse purchases
Fun for customers

Disadvantages

Difficult to terminate
Possible damage to retailer’s image
More stress on frivolous selling points
Short-term effects only
Used as a supplement

Site Selection

Three Types of location

• Isolated store
• Planned Shopping Center 
• Unplanned Business District

Isolated store

Freestanding retail outlet located either a highway or a street .

For example, Starbucks 

  Advantages                                                                                

 

No direct competition                                             

Low rental costs

Flexibility

Good for convenience stores

High visibility

Adaptable facilities

Easy parking

Excellent for store that generates own traffic

Disadvantages

Difficulty attracting customers

Travel distance

Lack of cumulative attraction for customers

High advertising expenses

No cost sharing for promotions

Possibly restrictive zoning laws

Unplanned Business District 

Central Business District(CBD) 

Secondary Business District(SBD)

Neighborhood Business District (NBD)

String

CBD

-Usually located around a geographic point at which all public transportation meet them    

For example KL Sentral , Suria KLCC

Advantages 

-Easy access 

-Wide assortment

  

Disadvantages

-private transport

-high rent

-potentially higher crime rates

SBD

-Provide one concept, smaller than CBD.

-major street intersection

-one department or variety store

-for example, Petaling Street or Jalan TAR e.g fashion concept.

 

NBD 

-smaller than SBD 

-satisfy convenience

-one supermarket

-residential area

-for example, Giant

String

-Located along street & highway 

-firstly unillegal and after that legal after become ,ND,SBD and CBD

-For example, Uptown, Direct selling Coway.

Planned Shopping Center

Advantages

Well-rounded assortments

Strong suburban population

One-stop, family shopping

Cost sharing of promotions

Transportation access

Pedestrian traffic

Disadvantages

Limited flexibility

Higher rent

Restricted product offerings in lease

Competition

Requirements for association memberships

Domination by anchor stores

Impact of store closings on affinities

The plan shopping center are the pedestrian traffic are high level, the proper pedestrian

traffic should include the age and gender that are youngster, the pedestrian interview that

are very actively shopoing and the they visit the stores frequently.

The vehicular traffic are important for the convenience stores, outlet in regional shopping

center, car washes , fast food franchises, suburban area with limited pedestrian traffic and

non destination store.

The parking consideration evaluate by the number and the quality. distance of spots from

stores, parking slot security at early morning and late evening hours, availability of

employee parking and price to charge customers for parking .

The amount of parking center.

Shopping center = 4-5 spaces per square feet gross floor space

Supermarket=10-15 spaces per 1000 square feet of gross floor space

Furniture stores=3-4 spaces per 1000 square feet of gross floor space

 

Retail Location

The retail location are the macro environment and the site locations are the micro environment . In this part i will tell you about the retail location .

Retail Location

Shopping Centers 

• Strip shopping centers
• Shopping Malls

City or town locations

• Inner City 
• Main Street 

Free standing sites 

Other location opportunities

Types of strip shopping centers 

   There are traditional and power centers. For the traditional the example is the convenience store such as 7-Eleven stores.

The power centers are the one brand in one premise . For example Ikea.

Types of shopping malls

Regional centers - Only retail outlet , example Sogo , Sunway putra

Superregional centers- The big more that offer more retail outlet , the example such as One Utama , IOI.

Lifestyles Centers- This types more concentrated more on the lifestyle, For example, lifestyle for muslimah that concentrated in one place . For example Giomall.

Fashion and Specialty Centers - Its is more depend on the specialty , as for example we can take Plaza Low Yat as a specialty centers for looking for a gadjet and so on.

Outlet Centers- The outlet centers we can take example that is JPO .

 

Theme and Festival Centers- The retailer that have a theme in their places. For example, Sunway Pyramid that have a Moroccan theme in the places.

Merchandise Kiosk 

The merchandise kiosk is the small kiosk in the mall .

The problem that are facing regional malls.

The competition from alternative that is more convenient location that in the malls. The malls also fashion oriented that is the retailer having problem facing this. Next the aging , the younger generation doesn't go to the malls anymore . For example, Pertama Kompleks that are very dull looking. The malls management have to facing the demographic shift nowadays because there shouldn't not offer buying and selling only , but the must offer more variety in the place such as have indoor theme park .

Matching location to retail strategy 

Department stores- regional mall

Specialty-Central Business District

Category specialist-Power centers

Grocery stores- strip shopping centers

Drug stores-stand alone

Types of leases

Percentage -5% of the month 

Fixed - Rate - RM 5000 per month

Percentage leases- lease based on a percentage of sales

Retailer also typically pay a maintenance fee based on a percentage of their square footage of leased space. For example - The cleaner, technical and guard.

Most of the mall used some form of percentage lease.

Variations of percentage leases 

Percentage lease with specified maximum- percentage of sales up to a maximum amount.

Sales                         Rental-sliding scale

10-20k                       15%

20-30k                       20%

30k-above                 30% - maximum lease

Rewards retailer performance by allowing retailer to hold rent constant above a certain level of sales

Percentage lease with a specified minimum- retailer must pay a minimum rent no matter how low sales are. Pay 15% or RM5000 per month based on the agreement ofd the tenant.

Sliding scale, the percentage of sales as rent decreases as sales go up.

Fixed rate- used by community and neighborhood centers ,the retailer pay a fixed amount per month over the life of the lease. Not popular as the percentage lease. Rent increase by a fixed amount over a specified period of time.

For example, 1year RM5K

                        After 5 year -6k increases RM1k.