Jumat, 05 Februari 2016

Holt Renfrew vs. Burberry’s London Store

In my recent trip to London, I was fortunate enough to visit the Burberry store. When I compare my experience at Burberry London, I can’t help but recalling my shopping experience at Holt Renfrew, a prominent store that sells luxury brand products in Edmonton. I might not have come back from my London trip with an expensive Burberry product but whenever I purchase online items from their store I definitely remember my experience.

Some of the comparisons I made while comparing Burberry London with Holt Renfrew are: 

Difference #1 – Product Display

The sight that first greet any potential customers that walk through their doors are the dated glass cases that may have once drawn consumers to closely examine their contents. These glass cases now act as triggers to memories of similar displays found at The Bay or Sears that often house random disorganized trinkets. This connection that is made mentally in my mind dissuades me from investing any effort into investigating the contents, as I automatically assume they would house the low-cost and low quality products of the store.


Burberry London embraces open concept in their stores. They stray away from the classic department store display methods. I believe that by opening up their shelves it encourages consumers to explore all the products they have to offer, through touch, sight, and occasionally smell, barrier free. The trust that is indirectly conveyed to their customers by the openness of their display methods makes consumers feel less intimidated to examine a product because there is no hovering sales associate silently judging while waiting on the side. This makes the in store shopping experience enjoyable. This feeling is remembered and transferred when the customers shop online.

Difference #2 – Navigation and Lighting

In comparison to Burberry London, Holt Renfrew closely resembles the department store layouts we are more familiar with. Some displays are close in proximity and often form walkways and zones that are convenient for only one browser. I believe that this is purposely done so that people that are interested in the same display avoid entering into the display zone until the current viewer has left. In this manner, sales associates are able to provide the potential customer with excellent customer service and recommendations without being overwhelmed or having to split their attention between two clients. 

Entering Burberry London, I noticed that they played with open spaces and differing levels. The differing levels effectively separated their different fashion lines without causing wasted and empty areas within the stores.  I found that the open spaces that were provided gave me the opportunity to examine articles of clothes from a certain distance effectively allowing me to imagine myself in a particular piece. This gradually made me form an attachment to the product and a desire to purchase it. The lighting was used to highlight central pieces in a fashion line effectively displaying them to catch the eye of a potential costumer. This helped to direct consumers to the next product line in the store creating flow within the store.

In conclusion, I believe that the Holt Renfrew in Edmonton can benefit from adopting some of the in-store concepts of Burberry London.

Sources:
[2] http://pursuitist.com/inside-burberrys-london-flagship-store/ 

Daiso Richmond, B.C.

Daiso is a store made up of a large assortment of products categories. Majority of the products that can be found in Daiso are $2 (CND). They have anything from food, cutlery, stationary, cleaning supplies and the list could go on forever! Daiso is a generally a large Asian style dollar store.

Geographic location
Personally, I don’t think that Daiso was arbitrarily placed in Aberdeen Mall. I believe that Daiso has strategically located themselves in this mall. This is because the neighborhood that surrounds Aberdeen is filled with a demographic that would be highly interested in their products. I can safely say this because the majority of the population in this city is made up of Asian people.

Environment
When going into Daiso for the first time many people would not assume that they are at a dollar store. The is due to the fact that the store is generally a lot nicer, neater and bigger than a typical dollar store. The location in Richmond B.C. is a two storey 26,430 sq. ft. store. Which is bigger than any of the dollar stores that I personally have been to!
Daiso differentiates themselves by the store format. The store does not have the typical structures that run aisle to aisle. Instead, the store has many different displays. Depending on which department you are in the layout is a little bit different. For example, the food and beverage section looks a lot like a grocery store. The kitchen section on the other hand is not placed on the usual metal shelves that we see in the dollar stores but they are placed on wooden fixtures. It’s quite amazing how a store with such cheap inventory is able to make each department in the store feel like you are in a different store with their atmospherics.

Differentiation
There are plenty of dollar stores almost anywhere you go in North America. So, many would think that it would be quite difficult to differentiate yourself from the other dollar stores that are quite similar to one another. Daiso differentiates themselves by selling products that are in the same product category and price range as a Dollarama but the products are made by different brands that are not offered in a dollar store.
The selection categories in the store is generally the same as what you would expect in a dollar store. The part that I personally find value in is that they offer products that you would find in an Asian supermarket. For example, when going into a typical dollar store we would expect to see a section where we can get chocolate bars, potato chips, or sodas but at Daiso you would go for something more along the lines of Pocky, shrimp chips or green tea.
I must say personally I would be able to spend hours in the store and feel quite satisfied at the end of my trip! If you are in Vancouver anytime in the future I would definitely recommend going to check out Daiso.


Reference:
http://www.daisocanada.com/

The thrift trend


I recently took a trip to Value Village to look for ‘cheap’ items to put together a costume. Since it is easily one of the first stores that one thinks of for thrift clothing, I went in with the idea that it will be a good investment for something that I would only wear once or twice.  

Every since it’s inception in 1954, Savers (the parent corporation of Value Village) has grown on to become one of the best models for recycling reusable clothing, accessories and household items in the United States, Canada and Australia. Its model is very basic and niche. Value Village partners with various non-profit organizations to purchase and resell the items originally donated to those non-profit charities. This business model not only stimulates progress in the economy by bringing unwanted items for sale at a cheaper price, but also promotes the notion of charity and community service. Value Village boasts of its recycling and waste management initiatives. They claim that all products can have a meaningful after life even if are not necessarily used for their intended purpose. For instance, “textiles can be repurposed as insulation and metals from clothing and electronics can be sold for their raw value”, all the while, making alternate use of them and preventing it from reaching the landfills.



When it first started out, the concept of thrift shopping was targeted mainly towards shoppers on a strict budget or fixed income. Their competitive edge was that they could have pieces from any brand or shop, which were donated to them and were in a good wearable condition. Value Village too, centered its value proposition around price, since they are one of the stores that offer the lowest price in the market. 

The one thing I really liked about the store is the variety it provides. Everyone can find clothes (or other items) of their style and taste. It is not targeted towards one particular fashion stream. Instead, you can play around and experiment with different things, without feeling pressured to look at the price tag before looking at the item itself.

In the last couple of years, thrift market shopping has become a trend to some degree. Especially with the influx of YouTube popularized DIY (do-it-yourself) challenges, haul videos and Pinterest ideas put forth by various contributors, people have increasingly started investing in thrift store inventory. Instead of paying a premium price for a finished product at a high-end retail store, people have started looking towards product that can be repurposed and customized to suit their tastes. 

Various thrift stores have been reinventing their low-end image to a more up-scale shopping experience. The in-store displays have bright lighting, organized aisles of clothing, shoes, stationary, toys, and so on, which make it really easy to browse through. Value Village has started sponsoring fashion events in an attempt to re-brand the image of thrift items. They have also designed their website in a really easy to follow manner. Anyone can browse through get ideas about where to start or learn the “rules” on how to shop in a smart and economical manner. Since these stores don't have a set inventory, shoppers can really diversify and find unique products. The beauty of thrift stores is that it is a perfect place to splurge on things that you wouldn’t normally consider purchasing. I certainly walked out with multiple items that had nothing to do with my originally planned costume idea. 




If you are someone who frequents Pinterest (or any other social media site) wanting to recreate some ideas but doesn’t know where to start, perhaps a trip to a nearby thrift store can be of value. You never know what you might stumble upon!



Sources:



Recent changes implemented at KFC

KFC’s story starts with a man named Harland Sanders, who started selling fried chicken in Kentucky during the great depression. Through rapid expansion, massive investments, and showcasing the image of the brand, ‘the Colonel’, KFC is now the second largest restaurant chain in the world with over 18000 locations in over 110 countries. The brand is now owned by Yum! Brands, which is a conglomerate consisting of other food chains such as Taco Bell and Pizza Hut. Yum! Brands identify themselves as the competitors to the dominance of the hamburger in fast food, and KFC is coined as the innovator of chicken into the industry.


According to an article by Hayley Peterson, the “finger lickin’ good” company has made three recent changes in its operations. These changes are noteworthy as KFC has experienced recent increases in same-store sales. Although their same-store sales dropped by 15% in 2013, KFC changed their trajectory and now their US same-store sales have increased by 8% on a two-year basis. So how did KFC do it and how is their new success related to our class?

May of 2015 was the first time KFC used Colonel Sanders in their marketing campaigns since 1994. The revival of their original brand image got people talking, especially due to their use of celebrities to portray Colonel Sanders. Social media spread the images and videos to a length that may not have been possible before, this led to KFC’s ad reaching market segments that they may have overlooked in previous campaigns. Although some people reacted negatively towards the revitalized branding, the CEO of Yum! Brands was quick to interpret the negative reactions positively, saying “[people] are actually talking about KFC, and you can market to love and hate-you cannot market to indifference”. He also pointed out the fact that there were many posts on social media of people dressing up as the Colonel for Halloween.

The article also identifies the $5 ‘fill-up’ meals as being a factor to KFC’s recent success. The meal consists of a drink, an entree (if you want to call it that), several sides, and a desert. The ‘fill-up’ has boosted same-store sales and at the same time diversifies their menu.


The last contributing factor is that KFC began renovating their locations on the inside and outside. The stand-alone locations have revamped their exteriors and the results are quite impressive for a fast food chain. The interiors are also surprisingly classy, with red accents and eye catching fonts.



Peterson’s article demonstrates the importance of some of our class’ concepts. The marketing campaigns with the Colonel relates to the reach and spreading abilities of social media. The Colonel is also part of the shopper experience at KFC; he invites you into the locations with a smile and he is the face that people associate with the brand. The $5 fill-up meals are a way for KFC to expand their target market because it offers a standardized meal for a very low price. KFC is managing the way consumers feel about the restaurant’s value through these fill-up meals, and the increase in same-store sales proves the boost in perceived value. Lastly, the renovations relate to the significance of the store format as well as the value proposition. By changing the format of the locations, KFC can portray a certain level of classiness or they can aim to steer the customer in a certain direction. Aspects such as lighting can also affect how a customer feels in the environment, which can influence purchasing behavior and overall enjoyment. Overall, I think KFC is making some great changes that their finances are backing up. It will be crucial to continue to monitor the changes to see long term effectiveness and return on investment. Personally, I am indifferent to the Colonel and their marketing campaigns (or maybe I subconsciously like them). I do like the fill-up menu items because the more choice, the better; I am also a fan of the new designs of the stores. All this being said, I have known the brand for as long as I can remember, so their small efforts to change my perception of value will most likely go unnoticed. 

References:
http://www.businessinsider.com/kfc-made-3-drastic-changes-and-now-the-business-is-on-fire-2016-2

http://www.businessinsider.com/tons-of-kfc-customers-hate-the-new-tv-ad-2015-5