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Brock Naylor

How Store Layouts Affect Customer Behavior and Sales - 10 views

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    This article discusses not only the importance of having proper store layout within the retail industry, but also effective ways in which to employ displays and signage for optimum performance. Can you think of any retailers that have an effective use of store layouts or displays? Can you think of any examples that poorly utilize these attributes?
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    It's so interesting to think about how all these things in the article play into the store experience. We as customers do not really think about it when we are in the store, but seeing some of the aspects the authors talk about as being important, it is apparent we subconsciously notice. While working at Express, we used point of purchase displays and also a ton of promotion and sales signs. It's cool to see how much impact these little things have on how much customers will buy, etc.
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    For example, Fossil has a SALE sign outside of the store that generates customers to come into the store. It is an effective way for people to be drawn, and once they are in, the sale is located in the back. That way the customer has to walk through the entire store before seeing markdown items. The layout will describe the ease of walking through the store for customers and how organized they are which I believe are important to focus on.
jkayjohn

Pilgrimage, Anyone? Green Mountain Coffee Is Opening a Keurig Store - Businessweek - 3 views

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    Green Mountain Coffee is opening a Keurig Store to hopefully get to know more about their customers and offer on site demos, special promotions, new product offerings, and unique accessories for the Keurig to customers
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    Green Mountain Coffee is opening a Keurig Store to hopefully get to know more about their customers and offer on site demos, special promotions, new product offerings, and unique accessories for the Keurig to customers
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    This article was an interesting read that opens up new ideas in regards to gathering insight into consumers. I am very curious to see how successful this store is at obtaining information from consumers. I feel like the Keurig store will receive more foot traffic from consumers who are interested in becoming users instead of those that currently have a Keurig. Those who already own it, and are satisfied will most likely continue to obtain the necessities for the appliance at their normal retailers. The way I see it, the store will be capturing more about potential clients rather than the current users. I am unsure if the cost incurred through opening the Keirig stores will be worth the information they gather.
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    This is an interesting strategy for Keurig. Like Lindsey mentioned, it'll be interesting to see how this effects the companies over all sales. Although the venture will provide fantastic PR, the question is whether he gains will outweigh the costs. I agree with Lindsey again though, it is likely that a majority if the visitors will be non-existing customers, of whom will leave with a positive experience and thus opt to buy a Keurig machine of their own. It will also be interesting to see the "accessories" that will be available for sale. These products would appeal to the existing customers, but would also highlight their need to "update" their Keurig models and thus consume more of the brands products. It would be great to see Keurig develop their "eco-friendly" line a bit further. It consists of k-cups that are recycle friendly. Ufortunately these products are quite a bit more expensive, a problem Keurig is already facing; making products more available to a larger demographic.
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    This article was fascinating to me! This is another example of how companies who used to be primarily product only or even online only want customer feedback and input. I think the idea is great - to let people use the machine to see how it works and how it can work in their everyday lives. But the location 14 miles outside Boston is a little far away I feel. I hope it is successful - already the outside looks sleek, classy, and expensive and I think the design alone with get people into the door to explore the concept. Since their goal isn't to sell, sell, sell but rather to experience and learn from consumers, I think it will work. But I do agree in this still tight economy, going to your local Walmart or Bed, Bath, and Beyond to buy the same coffee pods is realistic.
Sarah Jacobsma

Is This The Future Of Retail? AT&T Thinks So - Forbes - 3 views

  • AT&T’s research found that consumers who want to buy a specific product and have it delivered to their home will simply do it online. But for those who enter a store, their purpose is to learn, to experience, and to speak to a person.
  • AT&T’s research found that consumers go to the web to conduct ‘transactions;’ they go to a store to discover solutions to help them live, work, play, and learn.
    • Sarah Jacobsma
       
      AT&T's research has really allowed them to create a omni-channel retailer. This allows consumers to learn about a product and use them before the purchase is made. How do you think this interaction with different phone models will effect companies such as Apple -- who already offer their customers this type of environment?
  • How do we want people to feel when they enter our store?
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    This article discuses the future of retailing for AT&T specifically for brick-and-mortar locations. Their new store design will offer highly personalized services, solutions - not transactions, and emotionally engaging experiences.
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    This validities my the presentation that I did in class last week stating that the omni-channel retailing approach is where the retail industry is heading... Great article....
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    I agree with AT&T's stance on store layout and in-store customer service since this was the aspect of Phone retailing that was missing most of the time. At least that is my experience from Germany and the Netherlands. I think there is a huge potential for this model in other markets then the US as well.
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    I like the idea of the reps having tablets and their not being a counter between the customer and the rep. It would feel so much more friendly. I kind of want to go to the store next time I'm up that way. I think it is a good idea.
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    Great article! My article is also discussing omni-channel retailing and I really do think this is where retail is heading and think it is going to greatly improve overall customer experience!
Kate King

Finish Line Launches into Mobile POS | Retail Best Practices | RIS News: Business/Techn... - 6 views

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    Finish Line is has jumped on the trend that I think will ultimately be a benefit them, mobile check out. It takes the hassle of lines out of shopping, and like I commented on a different post, the less time you spend in line the more time you spend looking around the store. More time shopping will equal more products purchased.
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    I think that Finish Line is going to benefit highly from being able to do mobile transactions, especially during the holiday season. This will be able to help them eliminating lines and making for a better overall customer experience. I think it may take some consumers a while to become accustomed to, but overall I feel like that is where technology is bringing us in the retail world and it can only help the customer experience.
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    It is clear that more retailers are moving towards mobile POS systems, and it is interesting to imagine stores without cash registers. Nonetheless, most consumers can't stand the idea of sitting in line when all they want to do is pay once they've chosen the item or items they want. And not only are there problems with long lines, but there are also problems with not being able to find someone to help you when you need it. I think retailers switching to the mobile POS system is an advantage because they can interact more with the customers, while having the ability of being a portable checkout. The convenience of the mobile POS system allows the sales rep to converse and inform the customer of the product they are looking at, and shortens the decision to buy time since the sales rep can swipe the customers card immediately once the customer decides to buy.
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    I think this is a genius idea. I hate going into finish line and waiting in line for ages because of how crowded the place always is. Giving the attendance the ability to do mobile transactions with decrease the clutter of people in the stores who can get in and out quickly and make the experience much more enjoyable!
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    I can see why Finish Line is moving in this direction because a lot of the retail industry is following suit. I think the combination of technology and good customer service is a great thing to have in the retail industry but only if the customer service is solid as well. I am a little skeptical about Finish Line doing this only because when I go into tennis shoe stores which is what Finish Line's main product is, I like to talk to someone with a lot of knowledge on the product. I like getting an expert's opinion on running shoes because they are all made so differently.
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    I feel like the next logical step for finish line would be to offer an array of customization options on a mobile application due to the trend in which people like to individualize their shoes. Prior to this, you would have to buy a personalized product directly from the manufacturer based on the options that they allowed, and were often times much costlier than they might have been otherwise. By acting as a third party on behalf of this order, Finish Line not only provides a channel to its consumers for these customization options, but gives manufacturers more exposure to this application than they had prior. Its a win-win.
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    I agree, it is important to be innovative and develop more ways of approaching the customer. However, in the end it is also important to be distinctive in other disciplines like direct customer service or outstanding product quality and design. When I went into a Finish Line store the first time in my life yesterday, I didnt really see much differences in products or design in comparison to European Stores or Foot Locker.
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    I agree with Brock. Nike has their own customization, I think now its time for the store to start doing that. I think this would improve sales because when I got my shoes I went to Nike's site so I could customize the shoes to how I wanted since it was only like $10 more to have them exactly how I wanted them.
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    This is really cool what they are doing! I'm curious as to if they had a issue with lines in their stores or if they are working on simply improving customer service.
Brock Naylor

Everything You Need to Know About the Science of Store Design - 6 views

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    This is another fantastic article discussing the different types of store layouts and examples of how they are used. Try and think of an example of a store that uses each different type of layout - you might need it for our discussion!
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    This article was really interesting. I have never really considered how stores are set up to make sure I am viewing the post product. Stores use the layout and really consider product placement and register placement in order to make sure that customers are having the optimal experience when in store. It would be interesting to see how smaller retailers consider their stores.
Kate King

http://global.networldalliance.com/downloads/white_papers/Designing-an-Omnichannel-In-s... - 1 views

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    White paper: Designing an Effective Omnichannel In-store Experience: 5 Key Considerations
Lina Goens

Fashion Startup Everlane Tests New Price Points With Luxury Totes - 6 views

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    This article describes the luxury bag price points.  Everlane chose to use a pricing strategy of around $400 compared to bags $1000 in this category. They can offer these prices by "cutting out middle men like retailers, operation on modest budgets..". However, the big issue is convincing its customers that the quality is still there. Everlane also mentions they will not do discounts because of the customer sensitivity. 
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    It will be very interesting to see if this pricing strategy is successful. If Everlane can promote to and convince consumers ad to HOW their bags are affordable i.e. cutting out the middle men. Consumers must believe that they are getting the same quality compared to $1000 bags. Not offering discounts is one of the major keys to getting this to work. I do love a good deal but if a bag was already significantly priced lower plus discounts I would begin to question the brand. Im convinced but will consumers be?
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    I think the best part about this article is when it states, "Everlane's big challenge will be convincing shoppers that they're getting a good deal by purchasing bags that would retail between $1,000 and $1,500 for a fraction of the price." They are right by saying that consumers have no idea how much retailers mark up a simple t-shirt let alone a purse/handbag. Many women show "status" by carrying high-end handbags by Louis Vuitton, Marc Jacobs, Coach, etc. Like the article said, these handbags can run upwards $1000 to $1500! Interested to see how their handbags will sell, I really like them!
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    The idea is really great, but I do worry about how they are going to advertise this to consumers to convince them of this great idea as well. If they can devise a plan to convince the consumers, then I think Everlane could be very successful. Though I am a huge fan of discounts, even if a $1000 bag were 50% off, I'd still be paying more than the $400 bag from Everlane. That being said, if they can convince consumers that the quality is still there, then I do think this pricing strategy could work.
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    This is a really interesting pricing strategy for a brand that is interested in conveying quality. The brands that come with status are known for quality but women are also attracted to the altruistic aspects that women get from carrying a name brand bag with a designer name on it. I think that if this strategy is to be successful then they need to build their name in the market by growing their popularity and quality through consumer testing and testimony. They need to get their bags to have that status before they can expect to be in the same market as the other designer brands.
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    I have seen the same pricing strategy before. A Dutch firm called Suitsupply sells high quality suits (also produced in Italy or Portugal btw) for medium prices (between $300 and 700$), even including in-store tailoring. They just started about 10 years ago but are now expanding all over the world. I visited their Chicago penthouse store last month and it looks really great. They also achieve those low prices by cutting out the middleman of the supply chain. The thing is that they rely almost only on mouth-to-mouth marketing and endorsements such as one of the WSJ that ranked a standard Suitsupply suit even above a $2000 Armani suit. What I want to say with this is that both Everlane and Suitsupply might have found a new way of price marketing that propells them in front of many of their competitors.
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    I think Megan has a good point, if the brand doesn't have a status then why would people believe or want to buy it? When a brand has a status it gives it an association with quality, high cost, and etc. The status and association is what I think draws consumers in to purchase the various brands that are of the designer level. The brand needs to establish itself as a brand of quality a before they can expect consumers to believe they are offering them a deal on this bag that is comparable to the quality of a designer, well known brand.
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    I personally believe that Everlane's strategies are not only a fantastic approach at growing their consumer base, confidence and improving their brand image, but will also allow them to gradually squeeze in to compete with the handbag 'titans' - if you will. By eliminating excess costs and utilizing a penetration pricing method, not only will they be able to target a larger market that can afford their products, but they will also be displaying that they can compete with the other big name brands on the basis of quality alone.
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    I think the bags Everlane is selling at reasonable prices for this quality will pay off for them. I see this as a JCPenney type idea under Ron Johnson: selling items at good quality without sales or discounts. That way people will understand how Everlane is trying to give the customer the savings by cutting out the middle man/retailers to give customers the savings. If money grew on trees and I wasn't a broke college student, I would LOVE to buy one of those bags. To know it could sell at an upscale retailer for close to half the price with similar quality is great for the customer's piece of mind!
Kate King

Macy's Splurges on a Makeover on 34th Street - NYTimes.com - 4 views

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    I think it is great that Macy's is renovating it's iconic Manhattan store. Macy's used to only be found in New York - the iconic shopping experience with one of the largest department stores in the world. Now that Macy's is everywhere (having bought out all the regional department chains) there isn't as much reason to go to the main New York location if it's just another Macy's. They are continuing to innovate and make it a reason to come and visit - with restaurants, marble flooring, etc. It's a special place and they are bringing back it's original luster with a 21st century upgrade! I'm anxious to hear feedback about the new look after it's completed in 2015!
Sarah Wesp

IKEA's 2014 catalog lets shoppers virtually furnish a room (Video) | RetailCustomerExpe... - 2 views

  • allows shoppers to actually see how items will look inside their homes before they buy them.
    • Sarah Wesp
       
      Seeing what the furniture would look like in your home before actually purchasing the item..how cool! What do you guys think?
  • scan the catalog with the AR app on a tablet or smartphone
    • Sarah Wesp
       
      Creating this AR app is one of the ways IKEA is really integrating the omni-channel retailing.
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    Be sure to watch the video in this article on how this AR app is going to work.
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    IKEA is evil. Do they really have to make EVERYTHING they do fun? Consumers travel on buses to visit IKEA stores across the country, visiting one of their brick-and-mortar stores is an adventure! But now IKEA is making it fun to decorate your own room....from the comfort of your own room! This is an excellent step into the future of electronics and retailing. What a fantastic read.
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    I think this is an amazing concept! Now not only have they made online shopping more fun and interactive but it is also a much more efficient way of shopping for the right piece of furniture. You no longer have to worry about taking measurements or samples to make sure the furniture matches up with the room. Instead, you can virtually place the chosen piece right in the room with accurate measurements and design and see how it looks before even buying it!
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    This app seems super exciting. I love rearranging and decorating my own room and this app allows for people to physically see an idea on a screen that was originally just a vision. It is great to see how more and more companies are integrating omni-channel retailing to improve the customer experience whether it be online, in store, and mobile.
alipaigeh

Marketers Have it Wrong: Forget Engagement, Customers Want Simplicity - 3 views

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    This article has great content about how marketers can master the consumer decision process. The article was written about a year ago, but the information is still very relevant and provides helpful tips on how to be most effective in this area as a marketer.
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    Making it easier on us will make it easier on the companies. I still wonder how companies can implement this in the retail industries. Turbo tax was a good example but I am curious as to how you can make it easier in retail because retail stores may offer same types of clothing but completely different prices, quality, styles. Can't really think of anything off the top of my head, but may be a good discussion question.
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    Interesting article! As I was reading it, I was thinking to myself about what I would want more, engagement or simplicity--and I do have to agree with them that simplicity would make things easier. In the last paragraph, the author states, "don't you think it's time to stop overwhelming consumers with marketing information and cut through the clutter?" I do think some marketing information is beneficial, but as a consumer, it would be nice to "cut through the clutter" and have things stated or marketed more simply.
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    I think simplicity comes into play especially with the way we view advertisements. If a company conveys a message simply and concisely with out me having to really pay attention or sort through more information I think I am more likely to buy it. Also simple images have more of a design appeal and I think our generation is more focused on aesthetics and the way things look and feel- and simplicity plays a large role in that.
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    I agree with Lina this is a tactic that would be hard to apply with clothing retailers, but it would be useful for electronic and appliance retailers. I was just on the Best Buy website, and for each product there was a whole page of information about its capabilities and features. They gave the option to compare products which helped to "cut the clutter". This was similar to Turbo Tax; there were options to choose four different products for a side by side comparison that gave a breakdown of the difference for the features and capabilities in just a few words. Best Buy is utilizing this simplistic tactic, and I personally love it!
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    I would have to agree with Megan on this point. There is a statistic somewhere that identifies the average amount of time a person spends actually observing an ad, and in that tiny time frame, there is no way you could pull away all the information many ads are trying to convey. This is why there is a great push these days towards image messaging as opposed to textual advertisements
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    Although this article is titled, "Forget Engagement, Customers want Simplicity" I think this article provides an excellent response: http://www.forbes.com/sites/rogerdooley/2012/07/03/ikea-effect/ Although it was written a little over a year ago, I think it makes a pressing point. Simplicity is good, but too much of it and you will push the consumer away. There is a fine line between obligating the customer to be overly involved in the decision making process, but we need to remember to leverage their spending power. Consumers feel confident about their purchased because THEY chose to purchase it, not because it was pushed into their faces. Marketers need to remember the value the customer receives from the invested interest in the product. Although simplicity is an efficient and beneficial advantage, it limits personal investment into a product which intern negatively affects the value it holds in the consumers mind.
Kate King

How Zara Grew Into a Multi-Billion Dollar Brand Sans Ads | CMO Strategy - Advertising Age - 8 views

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    Wow - absolutely loved this article! Even though it started with discussing the death Rosaila Mera, the article totally turned the bad news around and focused on 6 amazing facts about Zara. I think this article did a great job of turning the upsetting news into something that left a positive outlook on Zara.
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    Agreeing with Ali, I loved this article and found it very intriguing! I had never heard about this company before but I loved reading about those 6 facts. The article states, "It hardly even has a marketing department, and it doesn't engage in flashy campaigns, as its competitors do..." and this is what does set them apart. I think it makes people want to know and learn more--a very different, but obviously a very successful business model for them. Great article!
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    Yes, Zara is another example for a brand which made it without spectacular advertisement to the top of the world. I have the feeling in Europe (or at least Germany and the Netherlands) Zara is even bigger. It is one of the few apparel brands which we talk about in class that I actually know. I do agree that the design of a lot of apparels in the store looks similar to other known brands, though.
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    This is really interesting! It really highlights the importance of PR for a company and how placement in a highly visible can really increase company sales and provide marketing for a company at little to no cost.
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