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AGDMedia

This Retailer Analysis is on

AGDMedia

Poland

© DataGroup

was established in 1986, and has been a brand since 1995.www.dg-di.eu

http://www.dg-di.eu/


https://twitter.com/@Retail_Analysis

http://www.dg-di.eu/corporate-retailer-analysis.html




AGDMedia - Poland

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AGDMedia

Poland

AGDMedia

CONTENTS

Indicates a dynamic link to the online data

Indicates a dynamic link to an Excel spreadsheet

Indicates a dynamic link to an Access database

Indicates a dynamic link to a PDF document

Indicates a standalone installable programme

CONTENTS............................................................................................................................................. 2

Retailer Analysis - Introduction ............................................................................................................. 20

Structure of this report ....................................................................................................................... 20

1. The Retailer Report Analysis ................................................................................................ 20 Products ......................................................................................................................................... 20

Trading Area .................................................................................................................................. 20

Retail Competitors ......................................................................................................................... 21

Retailer ........................................................................................................................................... 22

Operations ..................................................................................................................................... 22

Buyers & Consumers ..................................................................................................................... 23

2. The Retailer Competitive Environment ................................................................................. 24

Products ......................................................................................................................................... 24

Trading Area .................................................................................................................................. 24

Retail Competitors ......................................................................................................................... 24

Retailer Operations ........................................................................................................................ 24

Buyers & Consumers ..................................................................................................................... 24

3. Market Research ................................................................................................................... 25

4. Business Planning ................................................................................................................. 25

SECTION 1 ........................................................................................................................................... 26

Analysis ................................................................................................................................................. 26

Part A : Base data on the Retailer ................................................................................................... 27 Part B : Financial Data ..................................................................................................................... 42



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Part B.1 : Management figures ................................................................................................ 42

Part B.2 : Balance Sheet and Management Accounts ............................................................ 43

Part C : Product Offering ................................................................................................................. 46

Main Product Lines ........................................................................................................................ 46

In-House Brands ............................................................................................................................ 46

Third Party Brands ......................................................................................................................... 46

Ancillary and Add-Value Products & Services ............................................................................... 46

Part D : Retail Locations .................................................................................................................. 47

Demographics & Lifestyle Analysis ................................................................................................ 47

Neighbourhood Analysis ........................................................................................................... 55

Site Analytics ............................................................................................................................ 56

Footfall ...................................................................................................................................... 57

Conversion Rates ..................................................................................................................... 58

Part E : Advertising, Marketing, & Events ....................................................................................... 59

Survey of Advertising Services used ....................................................................................... 59

Consumer Evaluation of Advertisements ................................................................................. 62

Focus Panels ............................................................................................................................ 62

Consumer Opinion of Advertising Effectiveness ...................................................................... 64

Advertisement Evaluation Survey ............................................................................................ 65

General Customer Surveys - Advertising Perceptions ............................................................. 66 Consumer Marketing Test ........................................................................................................ 66

Effectiveness of marketing initiatives ....................................................................................... 68

Corporate Marketing Evaluation ............................................................................................... 68

Part F : Store Experience ........................................................................................................... 69

Exterior Store Presentation ...................................................................................................... 76

Interior Store Presentation ........................................................................................................ 79

Ambience & Layout .................................................................................................................. 81

POS & Displays ........................................................................................................................ 82

Lighting ..................................................................................................................................... 83

Store Facilities .......................................................................................................................... 83

Store Image .............................................................................................................................. 84

Conversion Rates ..................................................................................................................... 84

Overall Store Evaluation ........................................................................................................... 85

Store Personality Survey .......................................................................................................... 86

Part G : In-store Customer Purchasing Behaviours ........................................................................ 87 In-store and Impulse-buying Decisions.......................................................................................... 87



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Purchasing Behaviours ............................................................................................................. 87

Consumer Store Behaviours .................................................................................................... 88

In-store Consumer Decision Making ........................................................................................ 89

Consumer Surveys ........................................................................................................................ 90

In-Store Purchase Process and Evaluation Survey ................................................................. 90

Shopper Involvement Study ..................................................................................................... 91

Store Entry Surveys .................................................................................................................. 93

Store Audit ................................................................................................................................ 93

Supplementary research .......................................................................................................... 94

Part H : Customer Handling............................................................................................................. 95

First Impressions Customer Survey ......................................................................................... 95

Queue & Waiting handling ........................................................................................................ 95

Interface & Dialogue ................................................................................................................. 96

Staff Response & Attitude to Customers .................................................................................. 96

Information Provided to Customers .......................................................................................... 97

Proficiency ................................................................................................................................ 97

Staff Interaction with Customers .............................................................................................. 98

Customer Complaint Handling ................................................................................................. 99

Product Returns & Refund Policy ............................................................................................. 99

Part I : Selling Strategies ............................................................................................................... 100

Stores ..................................................................................................................................... 100

Online Selling ......................................................................................................................... 100

Web Presence ........................................................................................................................ 102

Website Design ...................................................................................................................... 103

Website Information Quality ................................................................................................... 104

Website Customer Evaluation ................................................................................................ 104

Website Visitor Follow-up ....................................................................................................... 106

Website Feedback .................................................................................................................. 107

Web Demographics ................................................................................................................ 109

Internet Shopper ..................................................................................................................... 110

Online Purchases ................................................................................................................... 114

Multi-channel Retail Distribution ............................................................................................. 117

Stand-off Online Sites .................................................................................................................. 118

Events & Promotions .............................................................................................................. 119

Loyalty Schemes .......................................................................................................................... 119



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Social Media ................................................................................................................................ 120

Part J : Pricing & Price Points ....................................................................................................... 121

Pricing Study .......................................................................................................................... 121

Pricing Strategies ......................................................................................................................... 123

Strategies ................................................................................................................................ 124

Price Discounting .................................................................................................................... 124

Impact of Unsustainable Pricing .................................................................................................. 125

Stagnant Prices ...................................................................................................................... 125

Inflation ........................................................................................................................................ 126

Profit Margins ............................................................................................................................... 126

Profitability ................................................................................................................................... 126

Customers Base ..................................................................................................................... 126

Differential Value .................................................................................................................... 127

Future Strategies ......................................................................................................................... 128

Future Pricing Strategies ........................................................................................................ 128

Preparation for Future Price Changes ......................................................................................... 128

Part K : Retailer Performance Analysis ......................................................................................... 129

Store Managers Survey .......................................................................................................... 129

Customer Satisfaction Survey ................................................................................................ 131

Inventory Control .......................................................................................................................... 132

Inventory Balancing Act .......................................................................................................... 132

Operational Performance Analysis ......................................................................................... 133

Retail Performance Intelligence ............................................................................................. 138

Business Performance Comparisons ..................................................................................... 138

Shopper Numbers and Quality ............................................................................................... 138

Optimised Store Performance ................................................................................................ 139

Site Potential & Floor Mapping .................................................................................................... 139

Comparative Site Performances .................................................................................................. 139 Physical Operations at individual sites ........................................................................................ 139

Technology Usage .................................................................................................................. 140

Technology Spending & Customer Service ................................................................................. 141

e-Commerce and Cross-channel Sales ....................................................................................... 141

Development of Cross-channel Sales .................................................................................... 141

Showrooming .......................................................................................................................... 142

Part L : Strategies .................................................................................................................... 145

Expertise and Specialisation ........................................................................................................ 146 Data Mining .................................................................................................................................. 146



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Retail Store Evolution .................................................................................................................. 146

Bespoke Service .......................................................................................................................... 146

Collaboration ................................................................................................................................ 147

Uniqueness .................................................................................................................................. 147

Market Leadership .................................................................................................................. 147

Part L.1 : Corporate Retail Strategies ...................................................................................... 148

Operating Strategies ............................................................................................................... 148

Cash and Working Capital ...................................................................................................... 149

Retailing Operations ............................................................................................................... 150

Controls .................................................................................................................................. 152

Stakeholder Management ...................................................................................................... 152

Value Preservation ....................................................................................................................... 152

eCommerce & Multi-Channel Retail Strategy ......................................................................... 153

Part L.2 : Retail Marketing Strategy .............................................................................................. 154

Elements in Retail Strategy .................................................................................................... 154

Elements in the Market Analysis ............................................................................................ 155

Part L.3 : Strategic Planning in Retailing ................................................................................. 159

Overview of Strategic Retail Management ............................................................................. 159

Situation Analysis ................................................................................................................... 160

Organisational Mission ........................................................................................................... 160

Ownership and Management Alternatives ................................................................................... 160

Goods/Service Categories ...................................................................................................... 161

Management Abilities ............................................................................................................. 161

Financial Resources ............................................................................................................... 162

Time Constraints .................................................................................................................... 162

Objectives ............................................................................................................................... 162

Sales ....................................................................................................................................... 163

Profit ....................................................................................................................................... 163

Satisfaction of Stakeholders ................................................................................................... 163

Image Positioning ................................................................................................................... 164

Selection of Objectives ........................................................................................................... 165

Checklist ................................................................................................................................. 165

Identification of Consumer Characteristics ............................................................................. 166

Overall Strategy ...................................................................................................................... 166

Controllable Variables ............................................................................................................ 166



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Store Location ........................................................................................................................ 167

Managing the Business .......................................................................................................... 167

Merchandise Management and Pricing .................................................................................. 168

Communicating with the Customer ........................................................................................ 168

Uncontrollable Variables ......................................................................................................... 168

Consumers ............................................................................................................................. 169

Competition ............................................................................................................................ 169

Technology ............................................................................................................................. 169

Economic Conditions .............................................................................................................. 169

Seasonality ............................................................................................................................. 170

Legal Restrictions ................................................................................................................... 170

Integrating Overall Strategy .................................................................................................... 170

Legal Constraints on Retailers ............................................................................................... 170

Tactical Decisions ................................................................................................................... 172

Controls .................................................................................................................................. 173

Feedback ................................................................................................................................ 173

Part L.4 : Recession Strategy ........................................................................................................ 174

Economic Conditions ................................................................................................................... 174

Consumption Smoothing & Product Substitution ......................................................................... 174

Managing Inventories & Costs ............................................................................................... 175

Rising Costs & Raising Prices ..................................................................................................... 177

Staff Costs .............................................................................................................................. 177

Checklist ................................................................................................................................. 178

Part L.5 : Strategic Planning in a Global Retail Context .......................................................... 179

Planning Process and Global Retailing .................................................................................. 179

Opportunities and Threats in Global Retailing ............................................................................. 180

Opportunities .......................................................................................................................... 180 Threats .................................................................................................................................... 180

Standardisation ....................................................................................................................... 180

Factors Affecting Global Retailing Strategy ............................................................................ 181

Developed Markets ................................................................................................................. 181

Developing Markets ................................................................................................................ 181

Market Entry Decisions ................................................................................................................ 182

Part M.1 : Retailing Characteristics ............................................................................................... 183

Average Value of Sales Transaction ...................................................................................... 183



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Unplanned or Impulse Purchases .......................................................................................... 183

Retail Store Experience .......................................................................................................... 183

Application of Retail Strategies .............................................................................................. 184

Application of Retail Concepts ............................................................................................... 185

Total Retail Experience .......................................................................................................... 186

Customer Service ........................................................................................................................ 186

Relationship Retailing ............................................................................................................. 187

Part M.2 : Relationships in Retailing ........................................................................................ 189

Value & the Value Chain ........................................................................................................ 189

Value-Oriented Retailing Checklist ......................................................................................... 192

Part M.3 : Customer Relationships ................................................................................................ 193

Customer Relationships ......................................................................................................... 193

The Customer Base ................................................................................................................ 193

Core Customers ..................................................................................................................... 194

Customer Service ................................................................................................................... 195

Developing a customer service strategy ................................................................................ 196

Planning individual customer services ................................................................................... 196

Customer Satisfaction ............................................................................................................ 197

Loyalty Programs .................................................................................................................... 197

Channel Relationships ............................................................................................................ 198

Relationship Building: Goods -v- Service Retailers ................................................................ 199

Ethics & Relationships in Retailing .............................................................................................. 200

Ethics ...................................................................................................................................... 201

Social Responsibility .................................................................................................................... 201

Consumerism ......................................................................................................................... 202

Part M.4 : Planning Aspects of Service Retailing .......................................................................... 204

Successful service retailing .................................................................................................... 204 Performance of service retailers ............................................................................................. 204

Part N.1 : Supplemental Customer Survey Data ........................................................................... 206

Survey Respondent Demographics ........................................................................................ 206

Brand Survey .......................................................................................................................... 209

Retail Store Brand Personality ............................................................................................... 210

Comparative Retail Store Evaluation ..................................................................................... 210

Retail Store Evaluation ........................................................................................................... 211

Customer Surveys .................................................................................................................. 211



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Customer Satisfaction ............................................................................................................ 216

Customer Voices .................................................................................................................... 216

Product Satisfaction and Customer Retention ....................................................................... 217

Customer Satisfaction: Product .............................................................................................. 218

Product Ownership ................................................................................................................. 219

New Product Concept Evaluation and Pricing Study ............................................................. 220

Product Concept Test ............................................................................................................. 222

Product Survey ....................................................................................................................... 223

Product Purchases ................................................................................................................. 225

Customers’ Electrical / Electronic Product Purchases ........................................................... 227

Customers’ Fashion Demographic and Retail Clothing Shopping ......................................... 233

Customers’ Fashion Attitudes ................................................................................................. 234

Shopping Life Style Battery .................................................................................................... 235

Supermarket & Food Shopping Attitudes ............................................................................... 236

Supermarket & Food Store Selection Criteria ........................................................................ 237

Where would you shop for...? ................................................................................................. 238

Service Concept Test ............................................................................................................. 239

Customer service evaluation and feedback survey ................................................................ 240

Customer Service Evaluation ................................................................................................. 241

Customer Support Satisfaction Survey .................................................................................. 245

Product or Technical Services Evaluation .............................................................................. 246

Satisfaction: Product & Technical Documentation ................................................................. 248

Customer Services Evaluation ............................................................................................... 249

Website Evaluation ................................................................................................................. 257

Online Retailer Evaluation ...................................................................................................... 258

Purchasing on the Internet ..................................................................................................... 258

Internet Habits and Uses ........................................................................................................ 260

Part N.2 : Supplemental Retail Trade Survey Data ....................................................................... 262

Business Proficiency of the Company .................................................................................... 262

Organisational Satisfaction – Internal ..................................................................................... 263

Sales Staff Training Evaluation .............................................................................................. 264

Store Manager’s View of Brand Perception by Customers .................................................... 265

Retailer Survey on their e-Commerce .................................................................................... 266

Company Web Building Activities ........................................................................................... 270 SECTION 2 ......................................................................................................................................... 273



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Competitive Environment .................................................................................................................... 273

Competitive Environment .................................................................................................................... 274

Monthly Consumer Spending .......................................................................................................... 274

Market Opportunity .......................................................................................................................... 276

Analysis of the development of the retail trade and its life cycle ................................................. 276

Added Value and Transaction Costs across the Supply Chain ................................................... 277

Retailers per 10,000 inhabitants .................................................................................................. 278

Store Revenue per Square Meter per annum (US$) ................................................................... 278

Average Revenue per Store per annum (‘000) ............................................................................ 279

Average Store Sales Area (Square Meters) ................................................................................ 279

Existing Distribution Channels ..................................................................................................... 280

New Distribution developments ................................................................................................... 281

Online Shopping – Purchases per month .................................................................................... 282

Distribution Policies & Strategies ................................................................................................. 283

Retail Trade Life Cycle and Developments ................................................................................. 286

Future Prospects and Development of the Retail Trade ....................................................... 287

City and Town analysis ......................................................................................................... 287

Wholesaler, Trade Buyer, Retailer and Store Performance Surveys .......................................... 288

Products ....................................................................................................................................... 288

Operations ................................................................................................................................... 288

Buyers & Consumers ................................................................................................................... 289

Trading Area ................................................................................................................................ 289

Competitors .................................................................................................................................. 290

Distribution Channel Surveys ............................................................................................... 290

Decision Makers Surveys ..................................................................................................... 291

Industry Performance ........................................................................................................... 291

Value by Product Sectors ..................................................................................................... 292

City / Town Market Value ..................................................................................................... 292

Consumer Attitudes ..................................................................................................................... 293

Products ....................................................................................................................................... 293

Operations ................................................................................................................................... 293


Trading Area ................................................................................................................................ 294

Competitors .................................................................................................................................. 295

Consumer Surveys ............................................................................................................... 295

Industry Performance ........................................................................................................... 296

Competitive Factors ......................................................................................................................... 297

Retail Brands ............................................................................................................................... 297



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Brands Price Differentials ............................................................................................................ 298

Product Price Differentials ........................................................................................................... 299

Product Value Positioning ............................................................................................................... 300

Product Pricing ................................................................................................................................ 301

Product Quality ................................................................................................................................ 302

Product Specifications ..................................................................................................................... 303

Product Target Audiences ............................................................................................................... 304

Product Volumes ............................................................................................................................. 305

Product Utility .................................................................................................................................. 306

Product Maintenance ....................................................................................................................... 307

Product Merchandising .................................................................................................................... 308

Product Advertising ......................................................................................................................... 309

Brand Positioning Tactics & Strategy .............................................................................................. 310

Current Tactical Brand Model ...................................................................................................... 310

Strategic Brand Objectives .......................................................................................................... 311

Functional Positioning - Symbolic Positioning - Experiential Positioning .................................... 312

Customer Value Propositioning ................................................................................................... 313

Value Concept & Positioning ....................................................................................................... 314

Brand Differentiation Propositions ............................................................................................... 315

Key Selling Messages.................................................................................................................. 316

Communications Tactics .............................................................................................................. 317

Advertising Tactics ....................................................................................................................... 318

Media & PR Tactics ..................................................................................................................... 319

Web & Online Tactics .................................................................................................................. 320

Point of Sale Tactics .................................................................................................................... 321

Merchandising .............................................................................................................................. 322

Product Display ............................................................................................................................ 323

Market Entry Management Factors ................................................................................................. 324

Distribution ................................................................................................................................... 324

Retail Level .................................................................................................................................. 324

Brand Competition ....................................................................................................................... 325

Value ............................................................................................................................................ 325

Location ....................................................................................................................................... 326

Supply Chain ................................................................................................................................ 326

Nature of Competition .................................................................................................................. 327

Supplier Price Differentials .......................................................................................................... 327

Retailer Reaction ......................................................................................................................... 328

Supplier Reaction ......................................................................................................................... 329

Conclusion ................................................................................................................................... 329

Distributors – Market Entry choices ............................................................................................. 332



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Retail Presence – Market Entry choices ...................................................................................... 333

Distribution Channel: Advantages – Disadvantages ................................................................... 334

Market Entry options for Domestic Brands ...................................................................................... 335

Market Entry options for Established or Global Brands .................................................................. 336

Market Entry Features ................................................................................................................. 337

Start-up Costs .................................................................................................................................. 338

Start-up Costs, Initial Investment and Product Launch Balance sheet ....................................... 338

Inventory Costs ............................................................................................................................ 338

Brand Store Start-up Costs .......................................................................................................... 339

Independent Store Start-up Costs ............................................................................................... 340

Brand In-Store Start-up Costs ..................................................................................................... 341

Distributor / Exclusive Wholesaler Sign-up Costs ....................................................................... 342

Start Times Weeks: Brand Store ................................................................................................. 343

Start Times Weeks: Independent Store ....................................................................................... 344

Start Times Weeks: Distributor / Exclusive Wholesaler ............................................................... 345

Economies of Scale with multiple Stores ..................................................................................... 346

Cash Flow, Profit & Loss, Balance Sheet, Project Financial Analysis ............................................ 347

12 Months Cash Flow Analysis .................................................................................................... 347

First 12 months and First 3 years Profit & loss Account .............................................................. 348

1-7 Years Balance Sheet ............................................................................................................. 349

10 Years Project Financial Analysis ............................................................................................ 350

SWOT Analysis ............................................................................................................................... 351

SWOT analysis by type of Market Entry ...................................................................................... 351

Entry via Company Owned Retail Stores .................................................................................... 351

Entry via Domestic Retail Joint Venture ...................................................................................... 351

Entry via National Franchise Licensee ........................................................................................ 352

Entry via Intensive Individual Franchising.................................................................................... 352

Entry via Exclusive National Distributor ....................................................................................... 353

Entry via Intensive National Distribution / Wholesaling ............................................................... 353

Competitive Analysis ....................................................................................................................... 354

Retail Brands ............................................................................................................................... 354

Market Penetration Prospects ......................................................................................................... 355

Advancing into the target markets ............................................................................................... 355

Brand Concept ............................................................................................................................. 356

Brand Equity ................................................................................................................................ 356

Customer Based Brand Equity .................................................................................................... 357

Brand Knowledge ......................................................................................................................... 357

Substantial Brand Knowledge & Awareness – All Brands ........................................................... 357

Brand Equity Model ...................................................................................................................... 358

Substantial Brand Loyalty – All Brands........................................................................................ 359



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Substantial Brand Quality –v Price Perceptions – All Brands ..................................................... 360

Brand Knowledge Components ................................................................................................... 361

Brand Resonance Components ................................................................................................... 361

Brand Resonance ........................................................................................................................ 362

Qualitative Brand Research ......................................................................................................... 364

Qualitative Brand Identifiers ......................................................................................................... 364

Marketing communication applied to branded products .............................................................. 365

The Brand Image in the marketing communication process ....................................................... 366

The Store Image in the marketing communication process ........................................................ 366

Consumer confidence and consumer markets ............................................................................ 367

Consumer Confidence Index ....................................................................................................... 367

Consumer Confidence ................................................................................................................. 367

Consumer Attitudes and Perceptions which impact Brands ........................................................ 369

% Usage & Purpose of purchases ............................................................................................... 370

Celebrity endorsement ................................................................................................................. 371

Relative Ranking Criteria and Consumer Habits for Product Purchases .................................... 372

Brand Selection ............................................................................................................................ 372

Price over Brand Loyalty amongst Buyers................................................................................... 373

Purchase Drivers for Buyers ........................................................................................................ 373

Domestic Brands -v- Foreign Brands ........................................................................................... 374

What do consumers want in a branded product? ........................................................................ 375

What can National brands do to counter the established Global brands? .................................. 377

How can National brands do better than the Global brands? ...................................................... 378

Novel marketing methods to distinguish oneself from the competition ....................................... 379

Unique Brand Offerings ............................................................................................................... 380

New and Untapped Market Demand ........................................................................................... 381

Niche Markets .............................................................................................................................. 381

Brand Superiority ......................................................................................................................... 382

Building Heritage Brands ............................................................................................................. 382

Brand Resonance ........................................................................................................................ 383

Brand Persistence ........................................................................................................................ 384

Brand Development Opportunities ............................................................................................... 386

Industry Checklist ......................................................................................................................... 387

Product Design and Merchandising ............................................................................................. 387

Performance Indicators ................................................................................................................ 388

Application of Design – Performance Factors ............................................................................. 389

Industry Performance Indicators .................................................................................................. 389

Performance Indicators for brand selection, development, and distribution ................................ 390

Performance Indicators for merchandising strategies ................................................................. 391

Market Strategy Insight .................................................................................................................... 392



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Market Entry Possibilities and Criteria ......................................................................................... 392

Market Entry Difficulties ............................................................................................................... 392

Market Potential ........................................................................................................................... 393

Financial Potential ........................................................................................................................ 394

Consumer Potential & Attitudes ................................................................................................... 395

Relative Return on Investment by Market Area : 1-14 years ....................................................... 396

Relative Return on Investment by Product Category .................................................................. 397

Relative Return on Investment by market for Product Groups .................................................... 397

Opinions of the trade and retail experts on introducing new brands ........................................... 398

SECTION 3 ......................................................................................................................................... 400

Market Research ................................................................................................................................. 400

Markets ................................................................................................................................................ 400

MARKET RESEARCH COVERAGE ................................................................................................... 401

Markets & Products covered ........................................................................................................... 401

Product Sectors ........................................................................................................................... 401

Survey Data ..................................................................................................................................... 402

Consumer Surveys ................................................................................................................ 402

Distribution Channel Surveys ................................................................................................ 403

Decision Makers Surveys ...................................................................................................... 403

Industry Performance ............................................................................................................ 403

Products ....................................................................................................................................... 404

Operations ................................................................................................................................... 404


Trading Area ................................................................................................................................ 405

Retail Competitors ....................................................................................................................... 406

Geographic Coverage ..................................................................................................................... 407

Financial data ............................................................................................................................ 407

Financial Data Scenarios ............................................................................................................. 407

Financial Margins & Ratios Data Scenarios ................................................................................ 407

Market Research ............................................................................................................................. 408

General Contents ............................................................................................................................ 408

Market Research Report Table of Contents .................................................................................... 409

Core National Database Open the Core Database here ....................................................... 409

Sections ........................................................................................................................................... 409

Preface ................................................................................................................................ 409

Chapters .............................................................................................................................. 409

Databases ........................................................................................................................... 409

Financials ............................................................................................................................ 409



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Industry ................................................................................................................................ 409

Markets ................................................................................................................................ 409

Products .............................................................................................................................. 409

Grids .................................................................................................................................... 409

Reference ............................................................................................................................ 409

Contents .............................................................................................................................. 409

Legend ................................................................................................................................. 409

Cities .................................................................................................................................... 409

Countries ............................................................................................................................. 409

Chapters .......................................................................................................................................... 410

Chapter 1 .................................................................................................................................... 410

ADMINISTRATION .............................................................................................................. 410

Chapter 2 .................................................................................................................................... 410

ADVERTISING .................................................................................................................... 410

Chapter 3 .................................................................................................................................... 410

BUYERS – COMMERCIAL OPERATIONS......................................................................... 410

Chapter 4 .................................................................................................................................... 410

BUYERS – COMPETITORS ............................................................................................... 410

Chapter 5 .................................................................................................................................... 410

BUYERS – MAJOR CITY .................................................................................................... 410

Chapter 6 .................................................................................................................................... 410

BUYERS – PRODUCTS...................................................................................................... 410

Chapter 7 .................................................................................................................................... 410

BUYERS – TRADE CELL.................................................................................................... 410

Chapter 8 .................................................................................................................................... 410

COMPETITIVE INDUSTRY ANALYSIS .............................................................................. 410

Chapter 9 .................................................................................................................................... 410

COMPETITOR ANALYSIS .................................................................................................. 410

Chapter 10 ................................................................................................................................... 410

COUNTRY FOCUS ............................................................................................................. 410

Chapter 11 ................................................................................................................................... 410

DISTRIBUTION ................................................................................................................... 410

Chapter 12 ................................................................................................................................... 410

FINANCIAL - BUSINESS DECISION SCENARIOS ........................................................... 410

Chapter 13 ................................................................................................................................... 410

FINANCIAL - CAPITAL COSTS FINANCIAL SCENARIOS ................................................ 410



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Chapter 14 ................................................................................................................................... 410

FINANCIAL - CASHFLOW OPTION SCENARIOS ............................................................. 410

Chapter 15 ................................................................................................................................... 410

FINANCIAL - COST STRUCTURE SCENARIOS ............................................................... 410

Chapter 16 ................................................................................................................................... 410

FINANCIAL - HISTORIC INDUSTRY BALANCE SHEET ................................................... 410

Chapter 17 ................................................................................................................................... 410

FINANCIAL - HISTORIC MARKETING COSTS & MARGINS ............................................ 410

Chapter 18 ................................................................................................................................... 410

FINANCIAL - INVESTMENT + COST REDUCTION SCENARIOS .................................... 410

Chapter 19 ................................................................................................................................... 410

FINANCIAL - MARKET CLIMATE SCENARIOS................................................................. 410

Chapter 20 ................................................................................................................................... 410

FINANCIAL – MARKETING COSTS ................................................................................... 410

Chapter 21 ................................................................................................................................... 410

FINANCIAL - MARKETING EXPENDITURE SCENARIOS ................................................ 410

Chapter 22 ................................................................................................................................... 410

FINANCIAL – MARKETING MARGINS .............................................................................. 410

Chapter 23 ................................................................................................................................... 410

FINANCIAL - STRATEGIC OPTIONS SCENARIOS .......................................................... 410

Chapter 24 ................................................................................................................................... 410

FINANCIAL - SURVIVAL SCENARIOS .............................................................................. 410

Chapter 25 ................................................................................................................................... 411

FINANCIAL - TACTICAL OPTIONS SCENARIOS ............................................................. 411

Chapter 26 ................................................................................................................................... 411

GEOGRAPHIC DATA .......................................................................................................... 411

Chapter 27 ................................................................................................................................... 411

INDUSTRY - NORMS .......................................................................................................... 411

Chapter 28 ................................................................................................................................... 411

MAJOR CITY MARKET ANALYSIS .................................................................................... 411

Chapter 29 ................................................................................................................................... 411

MARKET CAPITAL ACCESS SCENARIOS ....................................................................... 411

Chapter 30 ................................................................................................................................... 411

MARKET CASHFLOW SCENARIOS .................................................................................. 411

Chapter 31 ................................................................................................................................... 411

MARKET ECONOMIC CLIMATE SCENARIOS .................................................................. 411

Chapter 32 ................................................................................................................................... 411



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MARKET INVESTMENT + COSTS SCENARIOS .............................................................. 411

Chapter 33 ................................................................................................................................... 411

MARKET MARKETING EXPENDITURE SCENARIOS ...................................................... 411

Chapter 34 ................................................................................................................................... 411

MARKET RISK SCENARIOS .............................................................................................. 411

Chapter 35 ................................................................................................................................... 411

MARKET STRATEGIC OPTION SCENARIOS ................................................................... 411

Chapter 36 ................................................................................................................................... 411

MARKET SURVIVAL OPTION SCENARIOS...................................................................... 411

Chapter 37 ................................................................................................................................... 411

MARKET TACTICAL OPTION SCENARIOS ...................................................................... 411

Chapter 38 ................................................................................................................................... 411

MARKETING EXPENDITURE -v- MARKET SHARE .......................................................... 411

Chapter 39 ................................................................................................................................... 411

MARKETING STRATEGY DEVELOPMENT ...................................................................... 411

Chapter 40 ................................................................................................................................... 411

MARKETS ........................................................................................................................... 411

Chapter 41 ................................................................................................................................... 411

OPERATIONAL ANALYSIS ................................................................................................ 411

Chapter 42 ................................................................................................................................... 411

OVERSEAS DEVELOPMENT ............................................................................................ 411

Chapter 43 ................................................................................................................................... 411

PERSONNEL MANAGEMENT ........................................................................................... 411

Chapter 44 ................................................................................................................................... 411

PHYSICAL DISTRIBUTION + CUSTOMER HANDLING .................................................... 411

Chapter 45 ................................................................................................................................... 411

PRICING .............................................................................................................................. 411

Chapter 46 ................................................................................................................................... 411

PROCESS + ORDER HANDLING ...................................................................................... 411

Chapter 47 ................................................................................................................................... 411

PRODUCT ANALYSIS ........................................................................................................ 411

Chapter 48 ................................................................................................................................... 411

PRODUCT DEVELOPMENT .............................................................................................. 411

Chapter 49 ................................................................................................................................... 411

PRODUCT MARKETING FACTORS .................................................................................. 411

Chapter 50 ................................................................................................................................... 411

PRODUCT MIX ................................................................................................................... 411



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Chapter 51 ................................................................................................................................... 412

PRODUCT SUMMARY ....................................................................................................... 412

Chapter 52 ................................................................................................................................... 412

PROFIT RISK SCENARIOS ................................................................................................ 412

Chapter 53 ................................................................................................................................... 412

PROMOTIONAL MIX ........................................................................................................... 412

Chapter 54 ................................................................................................................................... 412

SALESFORCE DECISIONS ............................................................................................... 412

Chapter 55 ................................................................................................................................... 412

SALES PROMOTION .......................................................................................................... 412

Chapter 56 ................................................................................................................................... 412

SURVEYS ........................................................................................................................... 412

Chapter 57 ................................................................................................................................... 412

TARGETS - PRODUCT + MARKET .................................................................................. 412

Chapter 58 ................................................................................................................................... 412

TECHNOLOGY ................................................................................................................... 412

Chapter 59 ................................................................................................................................... 412

TRADE CELL ANALYSIS .................................................................................................... 412

Chapter 60 ................................................................................................................................... 412

URBAN COMPETITION ...................................................................................................... 412

Chapter 61 ................................................................................................................................... 412

TOWNS - FINANCIAL ......................................................................................................... 412

Chapter 62 ................................................................................................................................... 412

TOWNS - INDUSTRY .......................................................................................................... 412

Chapter 63 ................................................................................................................................... 412

TOWNS - MARKET ............................................................................................................. 412

SECTION 4 ......................................................................................................................................... 413

Business Planning ............................................................................................................................... 413

BUSINESS PLANNING ....................................................................................................................... 414

Checklist .......................................................................................................................................... 414

Checklist implementation ..................................................................................................... 417

Advancing your Project ................................................................................................................ 417

Cashflow .................................................................................................................................... 418

The Business Plan Programme ............................................................................................... 419

Installing the Business Plan Programme ..................................................................................... 420

Retailer Analysis Report ...................................................................................................................... 427 Methodology .................................................................................................................................... 427



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Presentation .................................................................................................................................... 427

After-Sales Service & Client Support .............................................................................................. 428

Real Time Support ....................................................................................................................... 429

Resource Webs -v- Dedicated sites ............................................................................................ 429

Product Level ............................................................................................................................... 429

Data Product levels ...................................................................................................................... 430

Getting Started with the Core Database ...................................................................................... 431

Using the data .............................................................................................................................. 431

Toolkits ......................................................................................................................................... 431

Report Cost ..................................................................................................................................... 434

Retailer Report ............................................................................................................................. 434

Report Pricing .............................................................................................................................. 434

About DataGroup ............................................................................................................................. 435

DataGroup Clients ........................................................................................................................... 435

was established in 1986, and has been a brand since 1995.

The Retailer Analysis of AGDMedia.

Target Country: Poland

Ref: 7699899608850

Published by The DataGroup Stiftung, Vaduz, Liechtenstein. Copyright © DataGroup Stiftung.



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Retailer Analysis - Introduction

Structure of this reportThis document is constructed as a PDF file which links to a large number of online documents, Excelspreadsheets and Access databases.

This document consists of four sections:-

1. The Retailer Report Analysis

a. Analysis of the 15 most important Product Groups

These represent the most important Product Groups or Product Lines for AGDMediain Revenue terms.

Products

The Product Groups (1 to 15) data is shown in the tables as

Product Group #1 to Product Group #15

b. Analysis of the 15 most important Trading Areas:

1 Poland

2 Mazowieckie

3 Śląskie

4 Wielkopolskie

5 Małopolskie

6 Dolnośląskie

7 Łódzkie

8 Pomorskie

9 Lubelskie

10 Podkarpackie

11 Kujawsko-Pomorskie

12 Warsaw

13 Zachodnio-Pomorskie

14 Warmińsko-Mazurskie

15 Świętokrzyskie

Trading Area

The Trading Areas (1 to 15) data is shown in the tables as

Trade Area #1 to Trade Area #15

In addition data is given for all the significant Towns and Cities in Poland, a list ofthese can found here:-

http://www.dg-di.eu/BASE_FOLDERS/World_Cities/PL.html



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c. Analysis of the 15 most important Competitors

The algorithm ranks Competitors according to those which represent the mostsignificant threat to AGDMedia, when filtered for the following criteria:-

i. Chief Overall Market Competitorii. Main National Market Competitoriii. Main Regional / Local Market Competitoriv. Main Trading Area Market Competitorv. Main National Product Superiority Competitorvi. Main Trading Area Product Superiority Competitorvii. Main National Price Competition Competitorviii. Main Trade Area Price Competition Competitorix. Main National Financial Strength Competitorx. Main Trading Area Financial Strength Competitorxi. Main National Customer Satisfaction Competitorxii. Main Trading Area Customer Satisfaction Competitorxiii. Main National Marketing Aggression Competitorxiv. Main Trading Area Marketing Aggression Competitorxv. Main New Product Development Competitor

In this report the Retail Competitors are identified as individualcompanies. A list is not shown because the significance of theCompetitors change on a seasonal basis and thus the final list isproduced dynamically when the database is output for thespecific order.

Retail

Competitors

Competitor #1Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15



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d. Analysis of the 15 most important Retailer Operations

The algorithm ranks the Retail Operations which represent the most significant for AGDMedia:-

1. Brand Management

2. Product Management3. Marketing & Selling Activity4. Store Presentation & Merchandising5. Product Offering Specifications & Characteristics6. Product Quality Control7. Design Research & Development8. Customer Handling9. Product Sourcing & Control10. Financial Controls11. Staff Training / Control & Relations12. Product Throughput Capacity & Control13. Supply System Control & Development14. Distribution Control

15. Product Handling Systems & IT

Retailer

Operations

The Retailer Operations (1 to 15) data is shown in the tables as:

Operations #1 to Operations #15



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e. Analysis of the 15 most important Customer / Buyer Profiles

The algorithm ranks the Customer Profiles which represent the most significant for AGDMedia:-

1. Wholesalers2. Trade Buyers3. Retailers4. Consumers5. Consumers Age: <196. Consumers Age: 19-247. Consumers Age: 25-348. Consumers Age: 35-449. Consumers Age: 55-5410. Consumers Age: 55-6411. Consumers Age: 65+12. Consumers Social Group: AB13. Consumers Social Group: C1

14. Consumers Social Group: C215. Consumers Social Group: DE

Buyers &

Consumers

The Buyers & Consumers (1 to 15) data is shown in the tables as:

Buyers #1 to Buyers #15

f. Analysis of the internal and external issues which affect AGDMedia

The Analysis of AGDMedia consists of about 23 Parts or chapters with over 3600 research issueswhich have been investigated through Surveys of the Staff of AGDMedia, the Customers, theCompetitive companies, Trade Suppliers, Logistics companies, Trade Buyers & Decision Makers,Trade & Industry Experts, Banks & Financial Institutions, the Regulatory Authorities, and othersources.



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2. The Retailer Competitive Environment

a. Analysis of the 15 most important Product Groups

Products Product Group #1 to Product Group #15

b. Analysis of the 15 most important Trading Areas

Trading Area Trade Area #1 to Trade Area #15

c. Analysis of the 15 most important Competitors

Retail Competitors Competitors #1 to Competitors #15

d. Analysis of the 15 most important Retail Operations

Retailer Operations Operations #1 to Operations #15

e. Analysis of the 15 most important Customer / Buyer Profiles

Buyers & Consumers Buyers #1 to Buyers #15

The Competitive Environment is analysed in Product, Market, Competitive, Operational, andConsumer terms.

The Competitive Environment for AGDMedia consists of some 170 issues which have beeninvestigated through Surveys of the Staff of AGDMedia, the Customers, the Competitive companies,

Trade Suppliers, Logistics companies, Trade Buyers & Decision Makers, Trade & Industry Experts,Banks & Financial Institutions, the Regulatory Authorities, and other sources.



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3. Market Research

The market research is Country specific, and provides data on all the Cities and Towns in thehome country: Poland

For a list of Cities and Towns:


The report provides historic, current and forecast Market data, Financial data for the retailers, Industrydata for the trade, Survey data, and a large body of market research for each of the Poland Cities andmajor towns.

World Market Research data (on potential overseas expansion opportunities for AGDMedia) isavailable as part of the After-Sales Service.

4. Business Planning

This section provided Business Planning software and utilities.

To make the data handling easier, the documents and databases are alsosupplied on DVD or Hard Disk Drive which can then be used as a standalonedata source or, if required, manipulated and correlated with business planningor statistical software.

The breakdowns of Product Groups, Trading Areas, Competitors, Retail Operations, and Customer /Buyer Profiles are limited to 15 in each group because the Excel spreadsheets frequently analyse thecorrelation of data between 2 groups of 15. Because of the general limitation of record field numbers(generally 255 fields) one can only produce a 15 x 15 matrix.



SECTION 1

Analysis

AGDMedia



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AGDMedia

This report specifically refers to AGDMedia

This report specifically refers to the base country: Poland

Part A : Base data on the Retailer

AGDMedia

Base data on AGDMedia: Part_A

Key Personnel:1. Chairman2. Chief Executive3. Directors4. Executives

Corporate Summary:5. Company Description6. Company History7. Legal Entity & Ownership8. Company Facilities9. Company Key Assets10. Mainline product / service11. Product / services provided12. Parent Company13. Bankers14. Year established15. Current employees16. Issued capital17. Shareholders18. Last published turnover19. Subsidiaries20. Associated companies

21. Companies represented22. Agencies23. Physical processing locations24. Capital investment25. Advertising expenditure26. Advertising media27. Advertising posture28. Sales promotion activity29. Method of selling30. Distribution31. Distribution network32. Use of distribution channels

Corporate Observations:33. Stores



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34. Store Brands35. Store Sales Channels36. Products Carried & Services Offered37. Consumer Features & Benefits38. Current Market Analysis39. Competition

40. Competitive Advantage41. Target Markets42. Target Customers43. Current Strategy & Implementation44. Current Management45. Current Financial Plan46. Investment Fund Sources & Use of Funds47. Future Target Customers48. Future Retail Trends49. Future Market Analysis50. Projected Market Size51. Planned Products & Services52. Development Plans

Swot Analysis:53. Strengths54. Weaknesses55. Opportunities56. Threats

Future Strategy Planning & Implementation:57. Philosophy58. Product Development59. Internet Strategy

60. Marketing Strategy61. Sales Strategy62. Strategic Alliances63. Operations

Goals:64. Renovating premises, stocking, staff hiring and marketing65. Sponsorship & Hosting events66. Penetrate and raise awareness in the targeted consumer market67. Achieving a higher profit margin68. Building the customer base69. Generate repeat and referral sales70. Expansion potential

71. Reputation as a quality retailer

Exit Strategies

Management:72. Organisational Structure73. Leadership74. Staff Members

Financial Plans:75. Finance Requirements76. Use of Funds

77. Cash Flow78. Balance Sheet Topics79. Financial Assumptions



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The above topics are covered as brief or concise elements to give an impression of the topic basedon trade and industry analyses. The body of the report provides the detail.

The Corporate Observations section is a concise headlining, or sound bites, of certain issues whichconcern the retailer. In fact the Observations are based the analyses of several datasets which havethen been distilled into as few words as possible. In order to understand the data behind theseobservations readers should consider the datasets shown below.

As an explanation of the topics covered by the above items:-

1. Company Description

A brief description of the activities of the company.

2. Company History

The corporate milestones for the company.

3. Legal Entity & Ownership

Listed, Private, Family.

4. Company Facilities

Retail Locations Distribution Property Portfolio Production

5. Company Key Assets

Brands Cashflow position Copyrights Customer Base Customer Relations Designers Franchisees Internet Presence Investments Liquidity Locations Management Market Share Patents Product Range Staff Abilities Trademarks Value Proposition

6. Stores

Number and location of stores

7. Store Brands

Retail brands of the stores8. Store Sales Channels



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Company owned, Franchises, In-store departments, Joint-Ventures

9. Products Carried & Services Offered

Product Ranges of goods carried and services offered

10. Consumer Features & Benefits

Product Range Product Value Product Quality Product Design Product Fashion Store service Payment options Customer services

11. Current Market Analysis

Dynamic, Increasing, Stagnant, Falling, Deteriorating

12. Competition Very aggressive, Aggressive, Equivalent, Benign, Ineffective

13. Competitive Advantage

Value Proposition, Price, Quality, Store Locations, Customer Loyalty, Customer Services

14. Target Markets

Local, Regional, National, International

15. Target Customers

Male, Female. Under 18, Youth Trendy, Younger, Professional, General demographic,Mature, Older. Discount, Mid-priced, Upscale, Luxury

16. Current Strategy & Implementation

Very Effective, Effective, Consistent, Inconsistent, Ineffective

17. Current Management

Dynamic, Professional, Average, Lacking, Ineffective

18. Current Financial Plan

Dynamic, Productive, Consistent, Lacking, Unsuccessful

19. Investment Fund Sources & Use of Funds

Public, Institutional, Bank, Private. Use of Funds: Exceptional, Productive, Mediocre, Ill-advised, Poor.

20. Future Target Customers

New Customer Bases available. No New Customer Bases available.

21. Future Retail Trends

Dynamic, Advancing, Stable, Challenging, In decline

22. Future Market Analysis

Dynamic, Progressive, Static, Difficult, Collapsing

23. Projected Market Size

Significant increases, Increasing, Stable, Diminishing, Significant decreases



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24. Planned Products & Services

Substantial New Product/Service Offerings, Some New Product/Service Offerings, No NewProduct/Service Offerings, Reduction in Product/Service Offerings. No comment

25. Development Plans

Dynamic, Advanced, Progressive, Static, None



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SWOT ANALYSIS:

26. Strengths tested:

Advertising Effectiveness

Brand Business Alliances Business Innovation Competition Consumer base Cost advantages Culture Customer Service Direct delivery capability Economies of Scale Excellent customer service Experience and understanding of the Retail industry Experience in the field Financial Resources Future Changes available Good reputation among customers Good Staff Training Good Website Industry knowledge Innovative sales techniques Intangible Strengths Large administration component Management Market Lead Market Location Market Share Personnel Product Uniqueness Proprietary knowledge Relationship marketing Relationship with customers Relationship with employees Relationships with suppliers Reputation Shopping experience and customer service Sole supply agreements Standards

Store Fitting & Systems good quality Store Locations Strong Brands Superior product performance vs. competitors Technology Training Unique brands Use of new technology



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27. Weaknesses analysed:

Customer service staff needs training Future Changes difficult High overall unit cost relative to competitors Inferior technology Insufficient financial resources Intangible Weaknesses Lack of following-up procedures Lack industry knowledge Lack innovation Limited expansion potential Limited industry experience Limited industry knowledge Limited Product Range Limited Stocks Low Market Share

Low R&D Niche markets Poor Customers Relations Poor Employees Relations Poor Management Poor Marketing Poor reputation among customers Poor Suppliers Relations

Poor Website Product line too narrow Store brand unknown Small Economies of Scale

Small market presence Small store sizes Store fittings, plant and equipment old or outdated Untested markets Weak Brands Weak image

28. Opportunities evaluated:

Backward integration in the supply chain Better Training Better Website

Competitive opportunities Customer Service Database Assets Diversification E-commerce Establish a product line Expand Customer Bases Expand Customer Catchment areas Expand Customer Offerings Expand Product Range Expand Supply Sources Favourable cultural shifts

Favourable economic outlook Favourable regulations Import / export opportunities



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Increased geographic coverage Internet sales Local competitors have worse products Local Marketing Loosening of regulations Market growth Multi-channel marketing New demographics available New market niche New Market opportunities New Products New technologies Online presence Outstanding shopping experience will lead to repeat business Removal of international trade barriers Specific Markets Use of new technology

29. Threats evaluated:

Buyers changing Change in market demand Changes in demographics Changing consumer interests Changing fashion trends Cost and effectiveness of marketing to target markets Currency fluctuations Customers’ power growing Direct competition Economic climate Emergence of substitute products Environmental effects Fixed Costs

Foreign exchange rates Indirect Competition Local conditions Location Loss of control of product prices Low cost competitive products New regulations New retail competitors Obsolete product range

Pressure on margins Product substitution Regulations Shifts in consumer tastes Slow or Declining market growth Substitute product market Suppliers’ power growing Technology



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FUTURE STRATEGY PLANNING & IMPLEMENTATION

30. Philosophy

Contract theory / Stakeholder theory / Business as property

Contract theory:

Business contract theory holds that a business is a community of participants organized around acommon purpose. These participants have legitimate interests in how the business is conductedand, therefore, they have legitimate rights over its affairs. Most contract theorists see the enterprisebeing run by employees and managers as a kind of representative democracy.

Stakeholder theory:

Stakeholder theorists believe that people who have legitimate interests in a business also ought tohave a voice in how the business is conducted. The obvious ‘non-owner ’ stakeholders are the

employees. However, stakeholder theorists take contract theory a step further, maintaining thatpeople outside of the business enterprise ought to have a say in how the business operates. Thus,for example, consumers, even community members who could be affected by what the businessdoes, for example, by the pollutants of a factory, ought to have some control over the business.

Business as property:

This philosophy holds that the business is essentially someone's property, thereby its owners havethe right to dispose of it as they see fit, within the restraints imposed by the law. Workers andconsumers have no special rights over the property, other than the right not to be harmed by its usewithout their consent. Workers voluntarily exchange their labour for wages from the businessowner; and they have no more right to tell the owner how he will dispose of his property than theowner has to tell them how to spend their wages, which is property belonging to the workers.

Furthermore, consumers have no rights to govern or manage the business, which belongs tosomeone else.

31. Product Development

1. Diversification Strategy1. Product Modification Strategy2. Concept Product Development3. No discernible strategy employed by the retailer

The development of new products or services or modifying existing products or services so theyappear new, and the offering those products or services to current or new markets is an importantprocess for all companies.

Diversification Strategy:

Product diversification involves modifying the company’s product/s or service/s to expand into newmarkets by leveraging the company’s existing product or service experience and reputation.

This strategy is especially attractive for companies operating in a saturated market. The productdiversification strategy calls for the company to go outside its existing business and develop newproducts or services for a customer segments and new markets. This diversification might be based

on appealing to new customer demographics or price points.



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Product Modification Strategy:

By working with existing products or services in existing markets the company might attract andappeal to new customers segments. Product modification which adds new features to extend thecurrent offering, may also appeal to existing customer bases.

Concept Product Development:

Concept product development is the process of bringing to market unique or innovative product orservice. Generally the company’s existing customer base receives the product as new ideas orconcepts because they have no prior knowledge or experience with these new product or service.This type of product development poses a financial risk to the company and management shouldrely heavily upon disciplined market research as a means of reducing risk.

Regardless of which product development strategy is utilized, the process requires thoroughnessand a series of benchmarks throughout the process. These benchmarks help the company toassess whether the expensive and time consumed in the product development process should be

continued.Potential consumers must play a vital role in the product development process, and the consumerevaluation of the new products or services should be conducted at concept, prototype and finalproduct stage.

32. Internet Strategy

Checklist:

1. Employee productivity.2. Operational effectiveness.

3. Reduction of operating costs.4. Competitive advantage.5. Intra-company communications.6. Communications with suppliers.7. Communications with customers.8. Marketing presence online.9. E-Commerce & Online ordering.10. Poor internet strategy.

Internet Strategy

The company should have a specific, fully costed, plan to invest in an Internet presence to sellproduct online by advertising, marketing, taking orders, fulfilling orders, invoicing and collectpayment over the Internet.

1. Is the company’s online strategy fully planned?2. Is the retailer’s website a ‘me too’ rationale? 3. Does this retailer have a valid business reason to operate an online selling site?4. Does the online selling operation adversely reflect on the retailer’s brand? 5. Would the retailer be better advised to seek other channels to the market?6. Will the retailer’s prospective product buyers search for them on the Internet? 7. Can the retailer adequately describe and demonstrate the value proposition of the products

over the Internet?8. Can the retailer successfully compete in the online market space?9. Can the retailer make a profit from the Internet?



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Influencer – whomever helps the decider decide User – the individual who actually uses the product and derives benefit from it

The DMP or Decision Making Process

The people included in the Decision Making Unit (DMU) interact to make the purchasing decision.

The (DMP) is a description of this interaction. By understanding this process the retailer can bestunderstand who, how, and when to work on getting the customer to buy.

Does the retailer adequately understand the DMU? Does the retailer adequately understand the DMP?

34. Sales Strategy

Customers oriented. Understands the relative complexity of the market. Differentiation fromcompetitors. Benefits from the price –v- value function. Understands expected sales volumes andmargins.

Does the retailer’s sales strategy fully understand: The Customers and End Users? The relative complexity of the market? The differentiation from competitors? The price –v- value function? The expected sales volume? Has the retailer defined the target market? Has the retailer determined its outreach and which sales strategy will be most effective with

the target market? Does the retailer know the needs and aspirations of the customer? Is the retailer able to deliver on promises and customer expectations and thereby build a

relationship with the customer?

Does the retailer adequately monitor the critical aspects of their sales strategy?

35. Strategic Alliances

Many / Some / Few.

Manufacturing alliances Logistic alliances Supply Chain alliances Retailing alliances & Joint ventures Equity alliance Non-equity alliance

Geographic alliances



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36. Operations

Evaluation of the operations strategies which influences the retailer’s performance:

New product/service development strategy: Efficient / Timely / Dependable / Flexible / Costeffective / Ineffective / No comment

Vertical integration strategy: Efficient / Timely / Dependable / Flexible / Cost effective /Ineffective / No comment

Facilities strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective /No comment

Technology strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective /No comment

Workforce and organization strategy: Efficient / Timely / Dependable / Flexible / Costeffective / Ineffective / No comment

Capacity adjustment strategy: Efficient / Timely / Dependable / Flexible / Cost effective /Ineffective / No comment

Supplier development strategy: Efficient / Timely / Dependable / Flexible / Cost effective /Ineffective / No comment

Inventory strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective /No comment

Planning and control systems strategy: Efficient / Timely / Dependable / Flexible / Costeffective / Ineffective / No comment

Improvement strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective/ No comment

Recovery strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective /No comment

GOALS

Evaluation of the achievement of goals which influences the retailer’s performance:

37. Renovating premises, stocking, staff hiring and marketing

Renovating premises: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective/ No comment

Stocking efficiencies: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective /No comment

Staff hiring and training: Efficient / Timely / Dependable / Flexible / Cost effective /Ineffective / No comment

Marketing: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective / Nocomment

38. Sponsorship & Hosting events

Sponsorships: Significant / Minor. Events: Significant / Minor

39. Penetrate and raise awareness in the targeted consumer market

Target Market Penetration: Significant / Important / Moderate / Average / Insufficient Raising awareness amongst the target consumers: Significant / Important / Moderate /

Average / Insufficient



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40. Achieving a higher profit margin

Profit Margin achievements: Significant / Important / Moderate / Average / Insufficient

41. Building the customer base

Customer Base building: Significant / Important / Moderate / Average / Insufficient

42. Generate repeat and referral sales

Repeat Business: Significant / Important / Moderate / Average / Insufficient Referral Business: Significant / Important / Moderate / Average / Insufficient

43. Expansion potential

Business expansion: Significant / Important / Moderate / Average / Insufficient

44. Reputation as a quality retailer

General Retail Reputation: Significant / Important / Moderate / Average / Insufficient Reputation for Quality: Significant / Important / Moderate / Average / Insufficient

EXIT STRATEGIES

Envisaged / Unknown / Not planned.

Operations Brands Product Lines Store Locations Operating divisions Operating companies Shareholders & Investors

MANAGEMENT

Evaluation of the retailer’s management:

45. Organizational Structure

Organizational Structure: Resourceful / Professional / Dependable / Flexible / Cost effective /Ineffective / No comment

46. Leadership

Company Leadership: Resourceful / Professional / Dependable / Flexible / Cost effective /Ineffective / No comment

47. Staff Members

Company Staff: Resourceful / Professional / Dependable / Flexible / Cost effective / Ineffective / Nocomment



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FINANCIAL PLANS

48. Finance Requirements

Company’s Financial requirements: Well met / Sustainable / Adequately met / Unsustainable / Nocomment

49. Use of Funds

Company’s Use of Investment Funds: Well Planned & Implemented / Sufficiently Planned / Adequately Planned / Uncertain / No comment

50. Cash Flow

Company’s Cash Flow: Very strong / Strong / Moderate / Adequate / Insufficient / Fragile / Nocomment

51. Balance Sheet Topics

Company’s Balance Sheet Issues: No issues / Few issues / Some issues / Substantial issues / Nocomment

52. Financial Assumptions

Company’s Financial Assumptions: Conservative / Realistic / Neutral / Optimistic / Unsustainable /No comment



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Part B : Financial Data

AGDMedia

The financial data is provided in sections:-

1. the most salient retail Management figures and margins, and

2. a full Balance Sheet and Management Accounts simulation.

Part B.1 : Management figures

Management figures for AGDMedia: as an Excel file: Part_B_1

1. Retail Revenue2. Retail Profitability as a % of Sales

3. Total Retail Selling Space

4. Average Store Retail Selling Space

5. Average Store Retail Revenues

6. Average Retail Store EstablishmentCost

7. Fixed Assets: Premises

8. Fixed Assets: Store Fittings

9. Fixed Assets: Miscellaneous Items10. Fixed Assets

11. Capital Expenditure on Premises

12. Capital Expenditure on Store Fittings

13. Capital Expenditure on Equipment

14. Cap. Expend. on Data Processing

15. Capital Expenditure on Misc. Items

16. Total Capital Expenditure

17. Retirements: Premises

18. Retirements: Store Fittings

19. Retirements: Miscellaneous Items

20. Total Retirements

21. Total Fixed Assets22. Finished Product Stocks

23. Work in Progress as Stocks

24. Materials as Stocks

25. Total Stocks / Inventory

26. Debtors

27. Miscellaneous Current Assets

28. Total Current Assets

29. Total Assets

30. Creditors

31. Short Term Loans

32. Miscellaneous Current Liabilities

33. Total Current Liabilities

34. Net Assets / Capital Employed

35. Long Term Loans

36. Miscellaneous Long Term Liabilities

37. Shareholders’ Funds

38. Retail Workers39. Total Employees



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Part B.2 : Balance Sheet and Management Accounts

Balance Sheet and Management Accounts for AGDMedia: as an Excel file: Part_B_2

1. Return on Capital2. Return on Assets3. Return on Shareholders' Funds4. Pre-tax Profit Margins5. Operating Profit Margin6. Trading Profit Margin7. Return on Investment8. Assets Utilisation (given as a ratio of Sales

to Total Assets)9. Sales as a ratio of Fixed Assets10. Stock Turnover (Sales as a ratio of Stocks)11. Credit Period12. Creditors' Ratio (given as Creditors divided

by Sales times 365 days)13. Default Debtors given as a Ratio of Total

Debtors14. Un-Recoverable Debts given as a Ratio of

Total Debts15. Working Capital / Sales16. Materials & Energy Costs as a % of Sales17. Added Value18. Investment as a Ratio of Added Value19. Value of Plant & Equipment as a % of Sales20. Vertical Integration (Value Added as a % of

Sales)21. Research & Development Investment as a

% of Sales22. Capital Expenditure Investment as a % of

Sales23. Marketing Costs as a % of Sales24. Current Ratio (Current Assets as a ratio of

Current Liabilities)25. Quick Ratio26. Borrowing Ratio (or Total Debt as a ratio of

Net Worth)27. Equity Ratio (Shareholders Funds as a ratio

of Total Liabilities)28. Income Gearing29. Total Debt as a ratio of Working Capital30. Debt Gearing Ratio (Long Term Loans as a

ratio of Net Worth)

31. Average Remuneration (all employees - fulland part)

32. Profit per Employee33. Sales per Employee34. Remunerations / Sales35. Fixed Assets per Employee36. Capital Employed per Employee37. Total Assets per Employee38. Value of Average Investment per Employee39. Value Added per Employee40. Materials Costs as a % of Sales41. Wage Costs as a % of Sales42. Payroll and Wages as a Ratio to Materials

43. Variable Costs as a % of Sales44. Fixed Costs as a % of Sales45. Fixed Costs as a Ratio of Variable Costs46. Distribution Costs as a % of Sales47. Warehousing Costs as a % of Sales48. Physical Costs as a % of Sales49. Fixed as a Ratio of Variable Distribution

Costs50. Fixed as a Ratio of Variable Warehousing

Costs51. Fixed as a Ratio of Variable Physical Costs52. Fixed as a Ratio of Variable Total

Distribution & Handling Costs

53. Product Returns & Rejections Costs as a %of Sales

54. Product Installation & Associated Costs as a% of Sales

55. Product Breakdown & Associated Costs as a% of Sales

56. Product Systems & Associated Costs as a %of Sales

57. Product Service & Associated Costs as a %of Sales

58. Customer Complaint & Associated Costs asa % of Sales

59. Stock Work in Progress & Materials as aRatio of Finished Products

60. Stock Materials as a Ratio of Work inProgress



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61. Un-recoverable Debts as a Ratio of TotalDebt

62. Un-recoverable Debts as a Ratio of DebtsWithin Agreed Terms

63. Total Sales Costs as a % of Sales64. Total Distribution & Handling Costs as a %

of Sales65. Total Advertising Costs as a % of Sales66. Total After-Sales Costs as a % of Sales67. Total Customer Compensation Costs as a

% of Sales68. Total Variable Marketing Costs as a % of

Sales69. Total Fixed Marketing Costs as a % of Sales70. Total Fixed Marketing Costs : Ratio of Total

Variable Marketing Costs71. Variable Sales Personnel Costs as a Ratio

of Marketing Costs72. Variable Distribution & Handling Costs :

Ratio of Marketing Costs73. Variable Advertising Costs as a Ratio of

Marketing Costs74. Variable After-Sales Costs as a Ratio of

Marketing Costs75. Sales Personnel Variable Costs as a Ratio

of Sales76. Sales Personnel Variable Costs as a Ratio

of Debtors77. Sales Personnel Variable Costs as a Ratio

of Un-Recoverable Debtors78. Exports as a % of Sales79. $ Hourly Pay Rate

80. $ Hourly Wage Rate81. Capital Employed82. Return on Capital83. Return on Assets84. Return on Shareholders' Funds85. Pre-tax Profit Margins86. Operating Profit Margin87. Trading Profit Margin88. Return on Investment89. Assets Utilisation (ratio of Sales to Total

Assets)90. Sales as a ratio of Fixed Assets

91. Stock Turnover (Sales as a ratio of Stocks)92. Credit Period93. Creditors' Ratio (given as Creditors divided

by Sales times 365 days)94. Default Debtors given as a Ratio of Total

Debtors

95. Un-Recoverable Debts given as a Ratio ofTotal Debts

96. Working Capital / Sales97. Materials & Energy Costs as a % of Sales98. Added Value99. Investment as a Ratio of Added Value100. Value of Plant & Equipment as a % of

Sales101. Vertical Integration (Value Added as a %

of Sales)102. Research & Development Investment as a

% of Sales103. Capital Expenditure Investment as a % of

Sales104. Marketing Costs as a % of Sales105. Current Ratio (Current Assets as a ratio of

Current Liabilities)106. Quick Ratio107. Borrowing Ratio (or Total Debt as a ratio

of Net Worth)108. Equity Ratio (Shareholders Funds as a

ratio of Total Liabilities)109. Income Gearing110. Total Debt as a ratio of Working Capital111. Debt Gearing Ratio (Long Term Loans as

a ratio of Net Worth)

112. Average Remuneration (all employees -full and part)

113. Profit per Employee114. Sales per Employee115. Remunerations / Sales116. Fixed Assets per Employee117. Capital Employed per Employee118. Total Assets per Employee119. Value of Average Investment per

Employee120. Value Added per Employee



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121. Materials Costs as a % of Sales122. Wage Costs as a % of Sales123. Payroll and Wages as a Ratio to Materials124. Variable Costs as a % of Sales125. Fixed Costs as a % of Sales126. Fixed Costs as a Ratio of Variable Costs

127. Distribution Costs as a % of Sales128. Warehousing Costs as a % of Sales129. Physical Costs as a % of Sales130. Fixed as a Ratio of Variable Distribution

Costs131. Fixed as a Ratio of Variable Warehousing

Costs132. Fixed as a Ratio of Variable Physical

Costs133. Fixed as a Ratio of Variable Total

Distribution & Handling Costs134. Product Returns & Rejections Costs as a

% of Sales

135. Product Installation & Associated Costs asa % of Sales

136. Product Breakdown & Associated Costsas a % of Sales

137. Product Systems & Associated Costs as a% of Sales

138. Product Service & Associated Costs as a% of Sales

139. Customer Complaint & Associated Costsas a % of Sales

140. Stock Work in Progress & Materials as aRatio of Finished Products

141. Stock Materials as a Ratio of Work inProgress

142. Un-recoverable Debts as a Ratio of TotalDebt

143. Un-recoverable Debts as a Ratio of DebtsWithin Agreed Terms

144. Total Sales Costs as a % of Sales145. Total Distribution & Handling Costs as a

% of Sales146. Total Advertising Costs as a % of Sales147. Total After-Sales Costs as a % of Sales148. Total Customer Compensation Costs as a

% of Sales149. Total Variable Marketing Costs as a % of

Sales150. Total Fixed Marketing Costs as a % of

Sales151. Total Fixed Marketing Costs : Ratio of

Total Variable Marketing Costs

152. Variable Sales Personnel Costs as aRatio of Marketing Costs

153. Variable Distribution & Handling Costs :Ratio of Marketing Costs

154. Variable Advertising Costs as a Ratio ofMarketing Costs

155. Variable After-Sales Costs as a Ratio ofMarketing Costs

156. Sales Personnel Variable Costs as aRatio of Sales

157. Sales Personnel Variable Costs as aRatio of Debtors

158. Sales Personnel Variable Costs : Ratio of

Un-Recoverable Debtors159. Exports as a % of Sales160. $ Hourly Pay Rate161. $ Hourly Wage Rate162. Capital Employed



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Part C : Product Offering

AGDMedia

Product Offerings at AGDMedia: as an Excel file: Part_C

Main Product Lines

Data is given on the 15 main product lines which represent at least 80% of revenues at AGDMedia.

In-House Brands

Data is given on the 15 main products which are considered as being In-House Brands or OwnBrands. This is the In-House Brand addendum.

Third Party Brands

Data is given on the 15 main products which are considered as being Third Party Brands. This is theThird Party Brand addendum.

Ancillary and Add-Value Products & Services

Data is given on the 15 main Ancillary and Add-Value Products & Services. This is the CompanyServices addendum.



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Part D : Retail Locations

This data is available on a Corporate basis and on a Location/Site basis for AGDMedia

Demographics & Lifestyle Analysis

The composition of the retail trading area population is critical to the retailer. The population willinclude a variable mix of income groups, family groups, homeowners or renters, age groups, ethnicgroups, educational norms, employment groups, et cetera. Each population mix will determine howthe general population in the trading area is likely to purchase various consumable and durableproducts.

To analyze market opportunities for a trading area, one needs to examine data and ask questions likethe above about residents of the trading area. This data must include the absolute number of

residents, as well as their household characteristics. Current and projected demographic, lifestyle andconsumer spending data about the trading area from secondary sources can provide this information.Demographic and lifestyle data about the trading area can give one a starting point for an in-depthanalysis of specific business and retail development opportunities. This data also can help understandhow the broader population changing.

Demographic Data

It is assumed that product preferences vary across different groups of consumers. These preferencesrelate directly to consumer demographic characteristics, such as household type, income, age, andethnicity. For this reason, it is not only the amount of demand that truly matters to a trading area; the

Mix of Consumers also has a major impact on a trading area, and therefore must be thoroughlyexamined in all retail analyses. Albeit, there is a great deal of data included in these studies whichthen has to be analysed. The enormous amount of data can leave the user with a large number oftables and consequent information overload; therefore a number of toolkits are provided byDataGroup to assist users with software to present and interpret the data.

Relevant Data Categories

Interpretation of demographic data is often missing in market analysis; however in neglecting this dataone fails to fully appreciate how consumers spend their time and money. Specifically, the dataprovides insights into new business or retailing opportunities in the trading areas. Understanding andinterpretation of demographic data includes the following elements:-

Population and household composition data allow one to quantify the current market size andextrapolate future growth. Population is defined as all persons living in a geographic area.Households consist of one or more persons who live together in the same housing unit;regardless of their relationship to each other (this includes all occupied housing units).Households can be categorized by size, composition, or their stage in the family life cycle.Typically, demand is generated by the individual or the household as a group. Thus, the entirefamily influences a household purchase, such as a family car or TV. Individual purchases, onthe other hand, are personal to the specific consumer. Anticipated household or populationgrowth may indicate future opportunities for a retailer. An analysis of household and/or overallpopulation growth provides aggregate potential retail demand in a population.

Household income data is a good indicator of the population’s spending power. Householdincome positively correlates with retail expenditures in many product categories. Whenevaluating a market, retailers look at the median or average household income in a trading



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area and will seek a minimum number of households within a certain income range beforeestablishing a business or setting prices. Another common practice is to analyze thedistribution of household incomes. Discount stores may avoid high income areas. Somespeciality fashion stores target incomes above $100,000 households. A few store categories,such as auto parts, are more commonly found in areas with lower household incomes.However, using income as the sole measure of a market’s buying preferences can be

deceptive and one needs to consider all categories of demographic data when analysing amarket.

Highly affluent households with annual incomes above $200,000 comprise one of thefastest growing segments of the population; increasing in some countries by morethan 3 percent each year since 2008. They are strong consumers, as well asphysically active and conservative in their habits. Gearing a retail mix toward thissegment may require a focus in luxury goods and services. High-end department andtechnology stores, as well as cultural amenities l ike museums and concert halls, arefrequented by the most affluent households within a population.

Middle-income households with annual incomes between $50,000 and $100,000 aremuch more mindful of their expenses than highly affluent families. These households

tend to be more frugal and selective in their buying behaviour, shopping at discountoutlets for groceries and other goods rather than high-end stores, especially since2008. Superstores are particularly popular for middle and low-income households.

Low-income households with annual incomes below $25,000 are in a differentsituation than affluent and middle-income households. Families at this income levelare often living in poverty and thus spend very little on goods and services across theboard. The financial circumstances of these households have deteriorated evenfurther since 2008.

Age is an important factor to consider because personal expenditures change as individualsgrow older. Purchases change throughout a family’s life cycle, and that holds true forindividuals, as well. One important stage of life, and an increasingly influential category, is the

65 and older group. Realizing and providing for the needs of an aging population can bebeneficial to any retailer. Consumer spending on pharmacies and health care services flourishin areas with a large elderly population; albeit, older populations tend to spend less on themajority of goods and services. Studies indicate that nightlife and entertainment spending(restaurants, bars, and entertainment) by people over 65 is roughly half that spent by thoseunder 65. Older adults also spend considerably less on apparel than other age groups. Onthe other end of the spectrum, toy stores, day care centres, and stores with baby care itemsdo well in areas with many children and infants. Clothing stores and fast food establishmentsalso thrive in areas with a high adolescent population. Some entertainment and recreationalvenues, such as movie theatres and golf courses, serve a broad section of the population.

Education levels also figure into the socio-economic status of an area. Because incomeusually increases with advancing educational attainment, many retailers focus on incomelevel rather than education. There are some exceptions to this, though. Bookstores are oftencited by retailers as a business whose success is directly correlated with the number ofcollege educated individuals in the trading area. Similarly, computer and software stores areoften located in areas with high levels of education. In general, areas with high levels ofeducational attainment tend to prefer luxury items; and, they may have a preference forshopping at smaller, non-chain specialty retail stores located in the fashionable districts. Theyalso tend to visit cultural establishments like museums and theatres at a frequency over threetimes greater than those without a college degree. On the other hand, less-educatedpopulations generally have lower incomes and thus tend to prefer shopping at discount retailoutlets and chain stores. This group also spends more money on car maintenance andtobacco products than those with a college degree.

Occupational concentrations of white and blue-collar workers are used as another gauge of amarket’s product preferences. Speciality apparel stores thrive in middle to upper incomeareas and those with above-average white-collar employment levels. Discount clothing stores



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and used car dealerships are successful in areas with a higher concentration of blue-collarworkers. Office supply stores and large music and video stores are especially sensitive to theoccupational profile. These retailers target growth areas with a majority of white-collarworkers.

Ethnicity is another factor retailers consider when choosing merchandise to carry. Data show

that ethnicity affects spending habits as much as other demographic characteristics, such asincome and age. Tastes in goods and services vary between ethnic groups, and local retailersare wise to cater to the different needs of ethnic groups in their trading area. Ethnicityinfluences retailers’ product mix, including the lines of clothing they carry, and theiradvertising. Retailers that use segmentation based on race and ethnic groups must makesure their efforts effectively measure the true preferences and behaviours of the community.

Housing ownership and rate of housing turnover is an important factor for some retailers toconsider. Home ownership directly correlates with expenditures for home furnishings andhome equipment. Furniture, appliances, hardware, paint/wallpaper, floor covering, gardencentres and other home improvement products all prosper in active housing markets.

Comparing the Primary Trading Area with other Areas

Demographic statistics are especially useful if they are presented in comparison with other locations.To see how the target trading area differs from other locations, it is useful to provide comparison setsof data: comparable populations and the regional or national data as a whole.

The basic trading areas for Poland are as follows:

1 Poland

2 Mazowieckie

3 Śląskie

4 Wielkopolskie

5 Małopolskie

6 Dolnośląskie

7 Łódzkie

8 Pomorskie

9 Lubelskie

10 Podkarpackie


12 Warsaw

13 Zachodnio-Pomorskie14 Warmińsko-Mazurskie

15 Świętokrzyskie

In addition the individual Cities and Town in Poland are provided in the Market Research in Section 3


Comparing the target trading area with other populations and the regional data allows demographicbaselines to be established. These baselines will help determine whether the target trading area haslow, median, or high values in each demographic category. For instance, after examiningdemographics for the target trading area, it may appear that there are a high proportion of white-collarworkers. However, this observation cannot be verified until one know what constitutes an averagenumber of white-collar workers.



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Comparable populations can include five or six urban areas of similar size in the same region. Theurban areas chosen should reflect similar distances from metropolitan statistical areas of the region.Depending on the geographic size of one’s pr imary trading area, one will need to select similar-sizedtrading areas.

In addition to comparable populations, adding regional or national statistics will provide a broaderbenchmark for comparing a specific trading area. Regional or National data will include a blend ofurban and rural areas. Accordingly, it will not be limited to uniform populations. However, differencesbetween the trading area and the regional or national data (such as per capita income) will be usedlater in one’s analysis of retail or service business opportunities.

Demographic Data Sources

Detailed local census data is readily available from various national government agencies around theworld. For example, the U.S. Bureau of Census data can be retrieved at several geographic levels(county, city/village, census tract, zip code, etc.); and similar data exists in many countries.

In addition to the government data, there are numerous, national data sources that can providedemographic estimates for a particular trading area; albeit, much of this data is based on thegovernment and other public sources. Unfortunately much government data is not packaged in user-friendly comparative formats that make it easy to compare one geographic area with another. Oneneeds to be able to tap into the knowledge of skilled demographers who have designed data productscentred on particular industry needs.

The essential retail tool is the correlation of general population demographic data with individualmarkets and products. These DataGroup databases are designed to provide such data.

Lifestyle Data

Adding consumer lifestyle data takes the market analysis nearer to the reality of any marketforecasting situation. This data recognizes that the way people live (lifestyle) influences what theypurchase as much as where they live (geography) or their age, income, or occupation (demography).Lifestyle data enables one to include the consumer’s interests, opinions, and activities and the effectthese have on buying behaviour in the retail analysis.

Lifestyle Segmentation Algorithm

Lifestyle Segmentation examines the relationship between a population’s lifestyle characteristics andits product preferences. Retail revenues of particular Product Group classes are stimulated by largeconcentrations of populations of similar characteristics and tastes. As a result, a retailer can develop

product mixes targeted to specific customer segments which display a high propensity to consumethe product range(s) being marketed.

Concentrations of lifestyle segments create demand for specific products or services. This tendencyto cluster is based on the evidence that people prefer to live close to those similar to themselves.Homes and cars in any particular neighbourhood are usually of similar size and value. If one couldlook inside the homes, one would find many of the same products. Neighbours also tend to participatein similar leisure, social, and cultural activities.

The quality of a segmentation algorithm is directly related to the data that it inputs. High certaintyalgorithms allow one to reliably predict consumer behaviour. In a retail business targeting particularconsumers, the algorithm allows the retailer to identify products and services that appeal to thatmarket segment. The usefulness of a segmentation algorithm depends on how well the dataincorporates lifestyle choices, media use, and purchase behaviour into the basic demographic mix.This supplemental data comes from various sources, such as till receipt records, credit reference



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agencies, automobile registrations, magazine subscription lists, consumer product-usage surveys,and so forth.

Lifestyle Data Sources

These DataGroup databases offer lifestyle cluster data, which utilize sophisticated statistical modelsto combine several primary and secondary data sources to create their own unique cluster profiles foreach product group and market segment. Most models start with data from block groups that contain500-1500 households. In rural areas, the data is more typically clustered by post or zip code. Thisdata will breakdown each geographic area into one or more of the over 100 defined market segmentclasses based on differentiated socio-economic and demographic characteristics.

Lifestyle Segment Summary

These segments include:

• Demographics• Socioeconomic Classes• Consumer Behaviours

The Segmentation will include quantitative data, such as the Consumer Values Models, Product LifeCycle Models, Buying Power Index, Quality Index, Advertising Efficiency Models, and so forth, whichmeasures potential demand for specific products or services groups. These indices compare thedemand for each market segment with demand from both regional and national consumers. It istabulated to represent a value of 100 as the average demand. The indices can be aggregated into asingle value. Values above 100 indicate residents are more likely to purchase that product orparticipate in the respective activity. Conversely, values below 100 indicate residents are less likely topurchase the given product. These values are then shown for the Trading Area of the specific

Retailer, the Regional and National values and the overall Median value.

In this report there are 15 Product Groups represented:-

Product Trading Area Regional National Median

Product Group #1Product Group #2Product Group #3Product Group #4Product Group #5Product Group #6Product Group #7Product Group #8

Product Group #9Product Group #10Product Group #11Product Group #12Product Group #13Product Group #14Product Group #15

From this data, a clear picture of the important demographic, socioeconomic, and consumerbehaviour of residents in a specific Trading Area emerges.



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Lifestyle segmentation generalizes the types of customers in the trading area, which is useful inmaking sense of a complex market. However, this simplification may not fully capture the particularbehaviours of the customer base or may overlook the propensity to consume of differentiated groupsin the trading area. Since data is continually updated in these DataGroup databases, lifestylesegments are evaluated in near real-time. This is valid both where social and economic conditions

remain constant and where significant changes may make a static view of the segment lessrepresentative of reality.

Thus lifestyle segments can greatly help one understand customers in the trading area only where thesurvey data is gathered and updated on a regular and statistically valid basis.

Propensity to Consume Data

Estimates of household spending give an idea of the size of a market in value terms. For example,Secondary data are available that allow one to estimate the size of the local food or restaurantmarket, based on the number of households in the trading area. In addition, Primary data is useful toprovide refined estimates based on local demographics. It is important to remember that theseestimates measure the amount of spending by households residing in the trading area, notnecessarily spending within the trading area that also includes non-residents. Conversely, residents ofthe trading area may choose to spend outside the trading area.

Consumer Expenditure Survey

Consumer Expenditure Surveys are the primary data source for Propensity to Consume estimatesthat covers a whole range of household spending. The results of the surveys provide acomprehensive picture of household spending and are used to revise the Consumer Price Index andthe Purchasing Parity Index for national (and sometimes regional) markets.

The Consumer Expenditure Survey usually includes a Diary Survey of daily purchases and anInterview Survey of general purchases over time. The Diary Survey reflects record-keeping byconsumer units (individual and household shoppers) for two consecutive week periods. Thiscomponent of the Consumer Expenditure Survey collects data on small, daily purchases that could beoverlooked by the quarterly Interview Survey. The Interview Survey collects expenditure data fromconsumers in interviews conducted on a randomised monthly basis. The data from both surveys isintegrated to provide a comprehensive database on all consumer expenditures.

In addition to the Consumer Expenditure Survey, there are supplementary and complementarydatasets to provide more sophisticated estimates of specific market segments and product groupconsumption patterns. For example, a Differential Probability Model links spending by the consumerssurveyed to all households, with similar socioeconomic characteristics, with opportunity costs anddifferential spending patterns. The results are spending estimates based on the demographics of a

particular trading area, which are reported together with the average spending per household and aspend Propensity to Consume index. The index compares the spending of the trading area’shouseholds to the regional and national average.



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Geographic Information Systems

Demographic analysis is useful in understanding purchasing characteristics for different marketsegments. While demographics can be collected and analyzed without the use of geographicinformation systems, GIS often aids and enhances the analysis. Since the use of GIS may be costlylearning curve for many retail professionals not expert in GIS, a battery of software is available in the

DataGroup Toolkits provided to users to offer technical mapping assistance.

Demographic data for a trading area is often reported as single values for each demographiccategory. For example, the trading area income is reported as one value, even though income canvary across the trading area. GIS, however, can display demographic values in finer detail bygeographic unit (zip code, street blocks, etc.). Mapping these variations may reveal valuable visualinformation that can be used to show the attractiveness of different retailing locations and assist retailsite planning.

Effective demographic mapping requires an understanding of some rudimentary cartographicconcepts. Perhaps the most important concept is an understanding of the problems associated withdemographic densities. Obviously, urban population density is usually higher than a similar sizedsuburban area. Moreover, many retailers would view the large concentration of customers as a

competitive advantage over a suburban location. However, a map showing the number of people ineach geographic unit does not always show this relationship.

In addition to understanding the propensity to consume within a specific trading area, one also needsto analyse geographic factors which may assist or impede those consumption patterns. For example,geographical barriers (rivers, railroad tracks, highways, et cetera), which may divide an area andthereby put certain locations in a ‘shadow zone’ which is difficult for consumers to reach. By contrast,rapid transit transport links may assist service industry retailers, and stores selling small or easilytransported items.

GIS is not limited to producing maps and graphics, but can also be used as an analytical tool indemographic analysis. Non-resident visitor profiling is vital for many companies, such as commutertransportation, catering and tourist attractions. While collecting demographics for the surroundingresident market is a straightforward process, non-resident visitors can come from a wide area; andobtaining and analysing demographics for every area that produced a non-resident visitor isunrealistic using traditional methods. In these instances, GIS can be used to profile demographics ofthe non-resident market.

Many businesses, such as hotels, and ‘Destination’ retail venues (like flagship department stores orluxury goods shopping streets), dependent on non-resident visitors and the use of data miningtechniques for customer records and payment records can be interfaced with GIS to produce a morecomprehensive view of a business’ actual catchment area.

Using neighbourhood demographic information as a simile, the demographics of a trading area as awhole can be used to represent the demographics of an individual visitor from that trading area. Usingaddresses, GIS can determine every trading area that produced a visitor and extract thedemographics of those trading areas. The demographics extracted from each visitor neighbourhoodcan be combined to produce a useful demographic profile of the visitor market.

The demographic profile is even more useful when it is given some perspective. Similar to thecomparable population analysis, the visitor demographic profile can be used to determine what makesvisitors demographically different from the general population. Instead of comparing local trading areademographics to those of other populations, the visitor demographics can be compared to thedemographics of a larger region. For instance, if visitors primarily originate from a regional area, thevisitor demographic profile can be compared to the demographics for the entire population of thatregion. These demographic profiles of the trading area visitors and the larger region can be comparedon a category by category basis.

Once the visitor origins have been mapped, GIS is used to determine the trading areas containingeach visitor and extract the associated neighbourhood demographics. These neighbourhooddemographics are used as a proxy for the demographics of an individual visitor.



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Neighbourhood Analysis

Catchment Area Analytics

The successful location of individual retail stores also depends on the neighbourhood or economicenvironment in which it is located. Whether the stores are located in a stand-alone position, ashopping street, a shopping centre or mall, within another retail premises, or some other site location,will impact on financial performance.

This is a question of Footfall Flows; being: how, from where, and when, does customer traffic interactwith a particular store location. Where retailers are selling impulse or discretionary items it isnecessary that customer traffic reaches their store before customers have spent their money en route.This is a similar exercise to that which is employed by supermarkets in positioning products within theaisles of their stores. One needs to encourage customers to spend their money in a logical flowprocess so that they spend the optimum amount.

Whereas individual retail stores may not be able to capture Footfall Flow data across the entirecustomer catchment area, DataGroup can provide this data and this can be interfaced with the

retailer’s own in-store footfall data.One needs to evaluate and identify (within the catchment area:

Trade Analysis of AGDMedia: as an Excel file: Part_D

1. The spending hotspots within the consumer catchment areas.

2. The flow patterns for customer traffic, for example, en route from parking area to prime (mostvisited) retail location.

3. The contour map of neighbourhood retailers and their products, for example, supermarkets,food products, clothing, consumer electronics, et cetera. This will dictate the how and wherethe customer will first spend their money, and thereafter what they may have to spend on

more discretionary purchases.4. The traffic volumes for retail units and locations based on footfall numbers.

5. The retail segments and sites with dynamic and growing sales within the catchment area.

6. The fashionable or popular sites and retailers within the catchment area, and their particulardemographic profile.

7. An analysis to identify expected customer demographics for the particular store locations.

8. A footfall flowchart to identify expected retail traffic and sales for the particular store locations.

9. A forecast of the footfall expected as a result of a particular type of marketing campaign.

10. The store costs and overheads for the particular store locations correlated with potentialsales.

11. An analysis of retail store performance, product line performance, and customer segmentsales for the particular store locations.

12. A profitability forecast correlated with retail traffic and sales for the particular store locations.

Shopping Centre tenant mix

Retailers should be aware that the tenant mix of any shopping centre or mall in which they locate theirstores will potentially impact on their profitability.

The ideal tenant mix in which a retailer locates a store will depend on the various indicators of retailsuccess including sales density, visitor traffic, visitor demographics and often more importantly, thenature and customer base of the other retailers in the retail space.



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Site Analytics

Performance management for individual storesThe understanding of the circumstances and causes of each and every variation in the revenues of aretail operation is the basis of every successful retailer. The analysis of retail data correlated withindustry and market data allows retailers to react to events by seizing opportunities and facingchallenges.

The ability to address critical issues, not only the vagaries of the market and consumer demand, butalso seasonal variations, staffing levels, customer satisfaction data, retail store upgrades and layoutchanges, marketing initiatives, and so forth, will allow retailers to perform better than competitors.

Site Analysis

It is essential for retailers to analyse and integrate data from each site. This includes sales, inventory,

visitors, conversion rates, staffing numbers, marketing and advertising promotions, public holidays,weather, and other variables. This data gathering should be automated and DataGroup can provideclients with suitable site based software that will capture this data.

Site Analytics

The analysis of the data will provide retailers with many tangible business planning tools, including:-

Trade Analysis of AGDMedia: as an Excel file: Part_D

13. Identify their optimum ratio of staff to customers14. Identify unused store potential & resources15. Improve their conversion rate and average transaction values

16. Increase store profitability and customer service levels17. Refine operations in every inch of the store to capture opportunities18. Track the effectiveness of marketing initiatives



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Part E : Advertising, Marketing, & Events


Survey of Advertising Services used

Company Surveys of AGDMedia: as an Excel file: Part_E

Approval and usage of advertising services for company, retail outlet or brand purposes:

1. Which of the following best describes the line decision maker ’s position within the company?a. Ownerb. Chief Executivec. Partnerd. Senior executive in charge of advertising, marketing, brand.e. Executive in charge of advertising, marketing, brand.f. Professional consultantg. Finance/accounting/purchasingh. Marketingi. Office manager

j. Outlet / Site managerk. Administrative assistantl. Technical or IT professionalm. Sales professionaln. Other

2. Where (Town, State, Country) is the office/site located?

3. How many employees work at this location?a. 1 to 17b. 18 to 19c. 20 to 99d. 100 to 199e. 200 or moref. Other

4. Select the range that best describes the approximate annual sales for the company at thislocation.

a. Less than $100,000b. $100,000 to $499,999

c. $500,000 to $999,999d. $1 million to $5 millione. $5 million or greaterf. Don’t know or Other

5. How much would you estimate you spent (in total) on the following advertising, sales andmarketing activities (at this location) in the past 6 months?

a. $0b. Less than $500c. $500 to $1,500d. $1,500 to $9,000e. $9,000 to $20,000f. $20,000 to $50,000

g. $50,000 or Moreh. Don't know



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6. Specify what percentage of your annual advertising budget is spent in the followingcategories:

a. Advertising in Yellow pagesb. Advertising in online directory / online yellow pagesc. Advertising in the local newspaperd. Advertising in on-line search engines

e. E-mail marketing campaignf. Holiday & greeting cards to customers or clientsg. Other greeting cards to customers or clientsh. Logo clothing or promotional items (hats, t-shirts, pens, notepads)i. Press release

j. Direct mail campaignk. Television advertisingl. Radio advertisingm. Market research & Audits

7. For each of the following advertising, sales and marketing services listed, which have yourcompany purchased in the past 6 months:

a. Advertising in Yellow pages

b. Advertising in online directory / online yellow pagesc. Advertising in the local newspaperd. Advertising in on-line search enginese. E-mail marketing campaignf. Holiday greeting cards to customers or clientsg. Other greeting cards to customers or clientsh. Logo clothing or promotional items (hats, t-shirts, pens, notepads)i. Press release

j. Direct mail campaignk. Television advertisingl. Radio advertisingm. Market research & Audits

8. For each of the following advertising, sales and marketing services listed, which do yourcompany plan to purchase in the next 6 months:

a. Advertising in Yellow pagesb. Advertising in online directory / online yellow pagesc. Advertising in the local newspaperd. Advertising in on-line search enginese. E-mail marketing campaignf. Holiday greeting cards to customers or clientsg. Other greeting cards to customers or clientsh. Logo clothing or promotional items (hats, t-shirts, pens, notepads)i. Press release

j. Direct mail campaignk. Television advertising

l. Radio advertisingm. Market research & Audits

9. If you conducted a direct mail campaign in the past 6 months, how did you go about preparingand sending your direct mail for the most recent campaign you ran?

a. Did the entire process internally (everything from writing letter, buying supplies,printing, stamping and mailing)

b. Outsourced the direct mail to an agencyc. Used an on-line provider



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16. Regarding the role you play in selecting Website Services for your company. For each of theitems below, tell us what your individual involvement is in the purchasing process.

a. Advertisingb. Determine need to purchasec. Evaluated various products/vendorsd. Authorised / approved purchasese. Determined where to purchasef. Placed ordersg. All of the aboveh. Other

Consumer Evaluation of Advertisements

Customer Surveys of AGDMedia: as an Excel file: Part_E

Advertising Evaluation Rating. The motivating power of each advertisement campaign on a 1 to 10scale.

17. In respect of the company’s last or current advertising campaign, was the advertising:a. Not at all motivatingb. Extremely motivatingc. About average for this type of product advertising

Focus Panels


In respect of the current (Test / Benchmark) advertisement campaign that promotes this company /product / brand and current advertisement campaign of 14 competitive companies / products / brands:

18. After considering the advertisements, divide them into three groups. That is, arrange theadvertisements into those you:

a. Will watch over and over againb. Might watch several timesc. Never want to watch again

19. What people, characters, or things stand out in the advertisements?

20. What thoughts and feelings is each person or character having during the advertisements;and how do you know that?

21. What are some ways that the product enhances the situation being shown; and where in theadvertisement did you see, hear, or feel that?

22. What are some impressions that you take away from the advertisements?

23. Is that impression positive or negative?



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24. Here are listed several concepts or feelings. Pick out the concept or feeling you think is mostclosely associated with the advertisements:

a. achievement and successb. living an active and full lifec. making smart choicesd. freedom to be one's self

e. self-reliancef. being accepted by othersg. caring for others, particularly the underdogh. being young at heart and in appearancei. personal security

j. being a good parentk. making a better worldl. living a comfortable and contented life

25. Tell us about a situation in which you have consumed/used/bought/etc. the product and feltlike the people or characters shown in the advertisement.

26. After watching the test or benchmark advertisement. What people, characters, or things standout in the advertisement?

27. What thoughts and feelings is each person and character having during the advertisement?How do you know that?

28. What does the advertisement say about the product? Where in the advertisement do you see,hear, or feel that?

29. What parts of the advertisement don't seem to fit together? That is, parts of the advertisementthat causes some confusion or perhaps is distracting?

30. Pick out the concept or feeling you think is most closely associated with the advertisement.a. achievement and successb. living an active and full life

c. making smart choicesd. freedom to be one's selfe. self-reliancef. being accepted by othersg. caring for others, particularly the underdogh. being young at heart and in appearancei. personal security

j. being a good parentk. making a better worldl. living a comfortable and contented life

31. After seeing the company’s advertisement, tell me how strongly you think it will motivatepeople like you to purchase the product during the next one or two weeks?

32. How do you rate the advertisement?

33. Why do you think it will motivate people like you to purchase the product?



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Consumer Opinion of Advertising Effectiveness


After seeing the company advertisements:

34. How well do you remember these advertisements?a. Don't remember at allb. Remember company but not product or advertisementc. Remember company and product but not advertisementd. Remember advertisement.

35. Other than trying to get you to buy the product or service, what is the main message of theseadvertisements?

36. What did you like most about these advertisements?

37. What did you like least about these advertisements?

38. If you were describing this advertisement to a friend, would you say these advertisementswere:

a. Activeb. Attention-gettingc. Boringd. Cheerfule. Creativef. Emotionalg. Energetich. Genuine/sincerei. Honest

j. Humorousk. Informative

l. Irritatingm. Memorablen. Naturalo. Offensivep. Pleasantq. Satisfyingr. Strongs. Uniquet. Warm-hearted

39. Indicate how descriptive the following statements are of you:i. Just like meii. A lot like meiii. Somewhat like meiv. Not much like mev. Not at all like me

e. It is important to me to be treated well.f. I like the "royal treatment" in storesg. I have somewhat old-fashioned tastes and habitsh. I like my clothes to look up to datei. I never have enough time to shop

j. I think I am a little bit wildk. I think shopping is funl. I often buy things on impulsem. I have lots of leisure timen. I expect to have more money next year



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40. Based on the Product features advertised, and in the Company advertisements:a. The advertisement message is understandable.b. The advertisement is believablec. The advertisement's message is relevant to me.d. The benefits described in the advertisement are believable to me.

41. After viewing this advertisement, would you consider purchasing the product?

42. These advertisements are much better than other advertisements for competitive products inthis product category.

43. Indicate how descriptive the following statements are of you:i. Just like meii. A lot like meiii. Somewhat like meiv. Not much like mev. Not at all like me

a. My world seems to be coming apart at the seamsb. I think I am a smart shopper

c. I like to be outrageousd. I feel I get a raw deal out of lifee. I think a woman's place is in the homef. I prefer stores where prices are always lowg. I never seem to have enough moneyh. I regularly read newspapersi. I have more money now than last year

j. When I shop, I just want to get it over with

Advertisement Evaluation Survey


Evaluation of TV, Newspaper, Print, and other advertisements viewed for the retail store:

44. Indicate your evaluation of Store Newspaper or Print advertisements:a. Entertainingb. Effectivec. Interestingd. Attractivee. Informativef. Professional

45. Indicate your evaluation of Store TV, Radio, and Internet advertisements:a. Attractiveb. Interestingc. Informatived. Professionale. Entertainingf. Effective

46. Indicate the number of friends, relatives or neighbours consulted while researching for thisproduct.

47. Indicate the number of TV or radio advertisements that you remember seeing during yoursearch for the product purchased.



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48. Indicate the number of Consumer reports that you reviewed in researching for the productpurchased.

49. Indicate the number of Newspaper or magazine advertisements that you remember seeingduring your search for the product purchased.

50. Where was the last place you saw or heard an advertisement for this Store?

a. newspaperb. magazinec. TVd. Radioe. Internetf. Flyerg. other

51. Which radio stations do you most often listen to?

52. What time of the day do you most often watch TV?a. morningb. afternoonc. eveningd. late night

53. Which newspapers do you most often read?

54. Do you subscribe to cable, pay, or thematic TV?

General Customer Surveys - Advertising Perceptions


55. Advertising Posture: Store/Outlet Level56. Advertising Posture: Company Level57. Promotional Activity: Store/Outlet Level58. Promotional Activity: Company Level

Consumer Marketing Test

Consumer Marketing Tests of products from AGDMedia: as an Excel file: Part_E

59. How does the Company’s product(s) rate on the following attributes?a. Not At All Descriptive

b. Very Descriptivei. High qualityii. Expensiveiii. A brand I can trustiv. Well builtv. A good value

60. What other brands of product(s) in this category have you used?a. I haven't used the product(s), but I'm familiar with it.b. I know nothing about the product(s).

61. What is it that you like about the product(s)?

62. What do you like least about the product(s)?



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63. What would be your main reason for buying the product?

64. Overall, how interested are you in buying this product if it were available?a. Not at all Interestedb. Not Very Interestedc. Neither Interested nor Uninterestedd. Somewhat Interestede. Very Interested

65. Which of the following best describes your need for this product?a. I really need this product because nothing else compares.b. This is a minor improvement over what I currently use.c. It looks okay but is about the same as my existing product.d. My current product would serve me better.e. I do not need this product?

66. What price would you expect to pay for the product(s)?

67. Assuming the this product is priced comparably to other major brands, would you say it is:a. Very poor value

b. Somewhat poor valuec. Average valued. Fairly good valuee. Very good value

68. In what ways does the described product appear to be superior to other product(s) in thisbrand category?

69. Overall, what would be your most important factors in choosing a product(s) in this category?a. Valueb. Best performancec. Good repair/Warranty serviced. Recognised brand namee. High quality

f. Shopping convenienceg. Easy/fast serviceh. Discounti. Good sales personnel/dealer/outlet

j. Broad selection of productsk. Do not knowl. Other

70. Other than the product itself, which of the following would most influence you when decidingto buy the product(s)?

a. Commentary in the media or on TVb. Commentary on the Internetc. Word-of-mouth

d. Sales/service representativee. Industry publicationsf. Advertisingg. Trade shows/eventsh. Guarantee/warranty offersi. Other



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Effectiveness of marketing initiatives

Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_E

71. Are promotions attracting the right kind of visitor?

72. What is the impact of social versus print media?

Shopper behaviour is constantly changing and by understanding the response to different marketingapproaches and channels, one ensures the best value from the marketing budget.

Site Analytics enables one to capture the timings and category of marketing campaigns, alongside allthe critical site data to evaluate marketing within the context of key variables such as weather, time ofyear and critical outcomes such as traffic and retailer sales lift.

Corporate Marketing Evaluation

Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_E

In considering the overall direction of the company's marketing effort, how would you rate:

73. the company's vision and direction?

74. the overall company operations today, compared with a year ago?

75. the financial strength of the company?

76. the efficiency of workflow in the company?

77. the company's skill in marketing products?

78. the ability to develop strong consumer promotions?

79. the regular introduction of new products?

80. the introduction of new, innovative packaging?

81. the company's focus on improving customer satisfaction?

82. the quality of relationships with distributors?

83. the company's effectiveness with retailers?

84. the quality of the promotional activities?

85. the quality of the sales support materials?



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Part F : Store Experience


Customers demand an in-store experience in return for shopping (in personal) at speciality retailoutlets; and increasingly at general retailers as well. The improvement of store-level operations isoften not a prime concern of senior corporate managers; however failure to be aware of theexpectations of customers will only damage profitability. An effective site operations program whichcreates a differentiated (and hard for competitors to replicate) store experience will attract and holdthe attention of shoppers.

Delivering an experience that is satisfying to customers and differentiated from competitors drivesboth repeat visits and improved store productivity. Conversely, a failure in satisfying the expectationsof a fulfilling experience will leave customers wanting to try competitive offerings; be that a new storebrand or an existing store brand with a new offer or promotion. Furthermore, a bad store experiencewill generate a ripple of negative comments with that customer’s family, friends, and co-workers.

For every retail situation, the interaction with the customer represents a mosaic of perceptions,neuroses (and indeed psychoses) on the part of the customer; within the container which representsboth the store environment and the actions of store personnel. The help the customer (indeed to helpthe customer spend his or her money) the retailers must provide an appropriate store experiencewhich includes:-

Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_F

1. Product & Retail Offer design2. Site Operations design3. Support Program design

Whilst the Product & Retail Offer design presents to the customer the outward sign of the storeexperience, this can represent a major investment for the retailer, and any defects may entail majorupgrades such as new layouts, a new visual image, and brand enhancements; and these oftenrequire substantial capital investment and time commitment to execute. Likewise, customers perceivethe impact of offer Support Programs that might be introduced at a corporate level, however even thebest programs must be underpinned by effective and consistent on-site execution. Otherwise, theretailer makes promises and offers in its advertising and other communications that many of theoutlets cannot fulfil for operational reasons. By contrast, Site Operations, can be rapidly improved andthis will yield improvements in the customer experience and result in improvements in revenues.

Reliable store performance to ensure a high level of customer store experience will lead to greatercustomer loyalty, consistent repeat business, and more flexibility to expand the product offering.

The key to reliable store performance is properly selected, trained, and motivated employees who aremore productive, consistently more effective with customers, and more aware of store effectivenessand performance. In such retail environments a retailer can expect like for like outlet revenues to be25-50% greater than the average. Notwithstanding the fact that personnel performanceenhancements take time to implement, such improvements involve little or no capital outlays and helpdifferentiate a retailer’s stores from those of competitors.


Retailers should consider and expect several factors to be critical to their operation:-

4. A consistent product offering from friendly and knowledgeable employees who quickly assistand guide customers to the right products.

5. Help and Advice with customer requests.



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6. Consistent Product Quality7. Spotless Store, Displays and Equipment8. Good stock levels9. Shelves and Displays kept uniformly tidy10. Premium Pricing for a better store experience.

For retailers to excel in consistent site operations they must understand that sustained executionrequires more than just operations manuals and a full complement of staff.

Retailers must develop and use interconnected operating system with detailed and fully definedprocesses that can deliver a consistent customer experience across the entire store chain.

Through clearly defined customer interaction scripts, detailed daily activities guides and employeeschedules, targeted hiring, training, and development, and a motivating career path andcompensation plan, employees have the tools and authority to truly focus on the customer and deliverthe right experience again and again.

Without a thorough store operating system, retailers (irrespective of enormous and creativeadvertising, strong product offers, and high quality store designs) will be compromised.

Sales and profit margins may vary across a store network. Customer numbers and sales may vary by200-300% across individual stores; however in trying to understand what accounts for performancedifferences one might naturally look at individual store locations and customer traffic flow, localcompetitive set and density, differences in size, layout, and age of store, and local marketing andpricing. However retailers often fail to understand the impact on revenues from an inconsistentcustomer experience.

Variances in customer store experience produce a 20-40% sales performance difference. In contrastto the other factors, this portion of the difference is not structural and can be remedied rapidly andeffectively.

Retailers should use independent Mystery Shoppers and regular Customer satisfaction surveys to

monitor these dynamics.Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_F

Site operations:-

11. Defined operational processes.12. Uniformity of site operations13. Customer interaction training14. Activity guides15. Employee training & development16. Employee compensation and motivation packages17. Site monitoring systems18. Customer satisfaction monitoring systems

Evidence of inefficient or dysfunctional behaviour in the site environment:-

19. Lack of a consistent customer store experience at individual store level20. Lack of a methodology for monitoring customer satisfaction at individual store level21. Lack of a uniform, customer orientated, site operation22. Lack of a methodology for updating operations and systems23. Lack of internal planning and management coordination24. Over-reliance on the store managers25. Lack of monitoring of the performance of individual store staff26. Lack of on-going staff training programmes27. Ill-considered promotions, projects and initiatives which distract store staff from their prime

duties

28. Low value administrative tasks which could be automated at site level29. Senior staff not regularly spending time at store level serving customers



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30. Senior staff not regularly visiting and shopping at franchisees’ stores 31. Senior staff not regularly visiting and shopping at competitors’ stores

Improving store-level operations usually yields a high return on investment and tends to increasesales and margins by between 5-15%. Good quality site operation creates a sustainable competitive

advantage and differentiation, in addition to a reinforced culture of customer focus, motivated andproductive employees, and lower staff turnover. Such improvements benefit retailers of all sizes,formats, and competitive positions and unlock latent value from store operations

The benchmark of all good retailers is the placing the customers at the very centre of the siteoperation. However much managers may be involved in hiring staff, organisation, and maintainingsites, the prime imperative must be the dynamic between customer and store experience. Retailerscannot allow this vital relationship to vary store by store due to the vagaries of either inconsistentstore presentations or employee training. Managers must ensure that adequate systems exist whichprovide staff-customer interaction guides, customer handling scripts, service tools, and explicitsystems which guarantees that employees know how to treat customers and create a consistent storeexperience.

Senior corporate managers at retailers should maintain a regular and rigorous, critical assessment of

the current operations in order to identify if and where gaps exist with best practice.


Checklist:-

32. Site-by-site performance review and customer satisfaction scores.

33. Site-by-site standard deviation analysis which would signal inconsistent execution.

34. Identification of the performance improvements that would be attained if the average storeimproved performance to within 25% of the top 10 stores.

35. Identification of the ideal customer store experience.

36. Survey of store employees at individual sites which identify variations in their understandingof the ideal customer store experience.

37. Review current store operating system to see whether it conforms to the three keycomponents of people strategies, store management, and customer interactions.

38. Clarify the key operating processes with those implementing them to understand whetherthese processes actually support the desired customer experience.

39. Conduct unannounced store visits.

40. Observe customer interactions and experiences.

41. Clarify with employees what drives their daily actions and efforts to serve the customer.

42. Evaluate how consistently the preferred customer experience is being delivered by stores.The above checklist will identify which activities are weak and which need to change, how manyemployees will be involved, and the potential rewards to be achieved by upgrading site performance.

A professional product offerings and brand management are of course essential; however they mustbe complemented by consistent site execution at each outlet.


43. Product Offer design44. Store concept and format innovation

45. Branding, image, and design46. Channel and brand management



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47. Site and Network Operations48. Roles and personnel staffing49. Customer-facing activities50. Site-management activities51. Dealer/franchisee/distributor relationship management

52. Measurement and rewards

53. Offer support54. Product or service offer pricing and management55. Advertising, promotions, and CRM56. Supply chain management57. Network planning and real estate management58. Administration and information Management

59. Store Visit checklist60. Customer satisfaction61. Customer satisfaction during past visits62. Product mix

63. Service satisfaction64. Display of products & POS65. Employee attentiveness66. Employee attitude67. Employee product knowledge68. Speed of service69. Transaction handling70. Store maintenance71. Store cleanliness & tidiness72. Consistence of service during peak times73. Consistence of service during slack times



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Distribution channels

Retailers that operate franchise, license, or dealer distribution channels must seek to control the on-site operations of their distributors, especially in the matter of customer store experience.

Customers do not differentiate between one type of store operation and another, they only see thestore brand and they expect and demand a consistent level of customer service.

The most successful franchisors make sure that their franchise operating system and standardsenable the franchisees to execute the required customer experience.

Retailers distributing their products via third party outlets need clear guidelines for their distributionchannel:-


74. Establish customer service standards which are formalised and part of the distributionchannel contract.

75. The customer’s store experience must be specified in manuals and training.76. Performance targets must be set and monitored. These may include transaction speed,

staffing levels, and response times.77. Site operating systems to help distributors recruit and train employees, define roles and

customer interactions, manage the store’s activities and staffing, and measure performance. 78. Distributor support systems and training.79. Enforcement of standards amongst distributors. Formalised monitoring of site operations, for

example, mystery shoppers, customer intercepts, coaching audits, surprise visits, andscorecards to ensure accurate feedback and corrective action.

80. A suitable compensation and reward system which incentives distributors to improveperformance.

Multi-channel consumers re-enforce the need for positive in-store experiences

Retailers are increasingly faced with two challenges, the growth in ever mobile consumers using avariety of purchasing methodologies, and the ever more urgent need to attract consumers to aphysical store location.

In recent years retailers have engaged in initiatives to produce online retail purchasing opportunities,and they have paid especial attention to the matter of mobile payments. However, if they fail to re-invent the in-store experience then they may as well shut up shop and become pure online retailers.

Some retailers have realised that rather than close stores they can strengthen and re-enforce theirbrand by giving their outlets an upgrade and giving their customers a better store experience.

What is needed is not just a cosmetic facelift, but the re-inventing of the store brand by creating a"brand story" to engage and involve a consumer in the shopping experience which will undoubtedly

include interactive elements, intuitive and futuristic store experiences, one-to-one digital dialogueswith customers, virtual shopping screens, audio/video presentations, Quick Response Codeintegration and other ‘attention getting’ store displays.

The store experience must have the following elements:-


81. An Emotional Focus for the brand82. Animation and movement83. Channelling of consumer behaviour84. Collaborative initiatives

85. Digital Interactive communication with customers86. Digital Media integration87. Events



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88. Excitement89. Innovation90. Investment in Digital devices, POS and Display91. Quality design concepts92. Showcasing93. Technology

94. The Beating Heart of the brand

With Main Streets and High Streets in decline, and evidence of tough times in shopping centres andmalls, it is becoming increasingly clear that retailers cannot simply sit back and wait for consumers topass their doors. Retailers have to develop their stores as Destinations. Consumers come to the storenot because they happen to be passing down the street, but because they are specifically attracted tothe store.

Retail multiples are bombarded with the constant noise and distraction of independents that open astore with a local fanfare, distract the consumer, and then equally quickly disappear. Theseindependents, whilst being a nuisance, can act as a stimulus to established retail chains because theindependents often bring innovative approaches and interesting service offerings to consumers. Theretail chains can often learn from independents and apply the lesson across their network.

Multiples engage in gimmickry on an ad hoc basis from time to time. The Selfridge's department storein London produced a "No-Noise" in-store promotion whereby they attempted to sell name brandproducts with no logos. The store suggested that it was, "To help you find balance in this fast-pacedworld… customers to find a moment of peace in a world where we are bombarded by a cacophony ofinformation and stimulation."

Burberry has used digital high tech for its brand of reinvention. The grand opening of its largest AsiaPacific store dramatized its bad weather gear by making it virtually rain during its "Burberry WorldLive" launch. Then Burberry turned its flagship London store on Regent Street into a "living website"—a digitally-enhanced shopping experience that filled the 44,000-square foot space with innovations ofall kinds (including that previously debuted digital rain). In the Chicago store it hosted a local eventthat continued the theme of "retail as theatre," incorporating digital media, entertainment and fashion.

These however are more evidence of over exuberant PR people rather than any real attempt toproduce meaningful in-store experiences.

More significant was when Marks & Spencer installed 10 virtual mirrors in their retail stores to coincidewith their virtual mirror application available on their website. Customers can see, in-store, howcosmetics and make-up look against their skin, without actually applying the makeup. This usestechnology which helps the customer consider choices and possible combinations without the timeand inconvenience of the actual physical application of cosmetics.

The use of digital technology to display products, select products, pay for products and ultimatelydeliver products to the customer will increase in the future and retailers should offer this as an optionto customers. The integration information provision to the customer and e-commerce is attractive tomany customers.

For the future there is the suggestion of the availability of ad hoc product designs, indeed in oneLondon shopping centre a company offers 3D printing which manufactures products to order. 3Dprinting for general use may be some way away, but it is coming.

Similarly the use of new materials is also coming. Imagine the use of Graphene and other advancedmaterials in a consumer context.


To future proof their positions in the market retailers have to expand their thinking:-

95. Product Offer and Network Strategy:

96. Channel and brand strategy97. Customer experience development



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98. Customer segmentation and targeting99. Franchise development100. Loyalty program design101. Market portfolio strategy and store-level investments102. New consumer product development103. New product offer development

104. The use of new manufacturing technologies105. The use of new materials and technologies

Site and Network Operations:

106. Cost reduction and productivity improvements107. Detailed store market and customer analysis108. Developing and implementing day-to-day operating processes109. Economic and operational benchmarking110. Site economic analysis111. Store employee hiring, training, and management112. Store operations best practices113. Store-level technology114. Supply chain management

Implementation:

115. Advertising and promotions engineering116. Customer-focused retailing culture117. Franchisee management118. Merchandising and offer development119. New business launch120. On-site pilot tests and execution121. Performance measurement programs122. Product and service pricing123. Testing and learning tools



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Exterior Store Presentation

Identifiable Store Name

Consumers must perceive an effective store name which sets the tone and provides identification bycreating an image for the consumer.

The store name has to be easy to say and remember, and be indicative of the images and emotionswhich the retailer wishes to implant into the consciousness of the consumer.

The store name should have longevity, and should not be too trendy or too associated with anyparticular identification which may prove transitory and liable to become unfashionable.

Visual Trademarks

The retailer’s identifiable trademark and logo provides a visual image to trigger the consumer’smemory recall of the store name. This is done with a combination of words, pictures, colour, shape,

typeface, texture and/or style to make the image prominent. The overall image of the store must beIdentifiable even in the absence of the store name (which might be obscured because of the viewingangle or some obstruction. The successful trademark image should be unique, indicative of theretailer’s products and services, and be consistent with the overall impression the retailer wishes toimprint on the consumer.

Unmistakable Storefronts

Storefronts must provide instant recognition and memory recall, both at a distance and up close. Theuse of a well-designed combination of exterior architecture, signing and window displays initiallyensures a powerful first impression, and thereafter reinforces that impression each time it is viewed bythe consumer.

Exterior ArchitectureThe store exterior look is often referred to as the architecture, and comprises of variousaspects such as building materials, architectural style and details, colours and textures.

The store’s architecture must accord with and reinforce the consumer’s expectation of theretailer and the brand.

Store SignageStore signage is the essential element of the storefront, identifying the retail brand andencouraging consumers to patronise the store. The value of strong storefront signage cannotbe underestimated, both in terms of brand recognition and competitive advantage in acrowded retail landscape.

Store Façade

The store frontage should entice and inform passing potential consumers. Consumers shouldconsult a store’s windows as they might look at the store’s catalogue or web site. The moreinterest, movement and animation found in the store window the greater the effect onpotential consumers.

Vantage PointThe design of the storefront must consider the customer's vantage point, the speed ofpassing foot and motorised traffic, and the opportunities available to attract the attention ofpotential customers.

A storefront with a 90º angle of approach will very rarely be adequate, either in a streetlocation or a shopping mall. The direction of customer traffic flow is influenced by variousfactors, site access points, the location of nearby parking or public transport, the nearby hightraffic volume venues, and the width of streets or shopping mall corridors, et cetera. All thesefactors will influence how and from where consumers view the storefront. A good retailstorefront design will include modular elements which will allow individual storefronts to be



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customised for the particular location. Thus the design elements can be positioned to face leftright or head-on.

Store Entrance

The store entrance can be a barrier to entry or an invitation. The flow from the outside to the insideshould be effortless. Whereas street locations do pose questions of security, energy conservation andthe reduction of exterior nuisance; in shopping malls retailers can use wide and open entrances whichallow seamless entry from the mall to the store. Many retailers rely on impulse purchases andtherefore it is important to create an open storefront by removing physical barriers and providing anunobstructed view into the store interior with a glass frontage. Removing barriers also includesremoving the clutter of notices, credit card signs, unrelated logos, and other muddle which tends tobuild up in retail locations.

Those stores which require doors for climate control, security or because the store offering suggests aneed for intimacy, have less opportunity to attract impulse buyers; and therefore the task of awelcoming store entrance is even greater. For such retailers, an unobstructed and welcomingentrance accompanied with a well-designed window display is essential.

Consistent and Compelling Store Image

An impulse consumer will spend a couple of seconds scanning a store exterior before then trying toscan the store interior through the storefront. Within less than 4 seconds that consumer will havedecided whether to enter the store or not.

In most instances, consumers are either on a mission to make a planned purchase, or is impulseshopping for amusement, entertainment or ideas.

Some consumers may visit a retailer to make a premeditated purchase or they may decide to enter astore because they are comparison shopping for something specific. For impulse buyers the decisionto enter a particular store rests with the reinforcement of their brand confidence in that the retailer,

and the assurance that in browsing they are using their time effectively.Those with time on their hands are more inclined to enter a store impulsively, drawn by the overallimpression that the retailer may have something of interest to them. The external store image givesthem the impetus and the interest to enter.

Customer Surveys of AGDMedia: as an Excel file: Part_F

First impressions are derived from the Customer Surveys:

124. Exterior Identifiable Store Name125. Exterior Visual Trademark126. Unmistakable Storefront

127. Exterior Architecture128. Exterior Store Signage129. Store Façade130. Vantage Point131. Store Entrance132. Consistent and Compelling Store Image133. Brand Hook134. Positive impressions



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The following parameters are examined in the Customer Surveys:

135. Does the Exterior communicate to the customer who the retailer is, and what they sell?136. Does the Fascia present the name, logo, corporate graphics and colours?137. Is the Store entrance open, semi-open, funnel / recessed / lobby, standard door?

138. Is the Window display eye-catching?139. Is the Orientation and Vantage point of the suitable?

140. How does the customer rate the Storefront?141. How does the customer rate the Marquees or similar fittings?142. How does the customer rate the Entrance/s?143. How does the customer rate the Display Windows?144. How does the customer rate the Height of Building?145. How does the customer rate the Size of Building?146. How does the customer rate the Signage?147. How does the customer rate the Store Visibility?148. How does the customer rate the Store Uniqueness?

149. How does the customer rate the Surrounding Stores?150. How does the customer rate the Surrounding Areas?151. How does the customer rate the Parking?

152. Is there sufficient Identification of Store Name?153. Does the Store Identification set the tone of the store?154. Does the Store distinguish itself in the customer’s mind? 155. Is the Store Name easy to say and remember?156. Are there sufficient Visual Trademarks?157. Does the Store Trademark provide a visual image to accompany a store name?158. Does the Store Trademark combine words, pictures and styles to make it stand out?159. Is the Store identifiable even without seeing store name?

160. Is the Storefront Unmistakable?161. Did the Storefront stop passing customers?162. Does the Storefront provide instant recognition and recall?163. Does the Storefront project a clear and concise image of what’s inside? 164. Does the Storefront use attractive exteriors, signage, and window displays?

165. How does the customer rate the Store Entrance?166. Is the Store Entrance good in Mall situations?167. Is the Store Entrance free of visual clutter?168. Is the Store Entrance unobstructed and welcoming?



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Interior Store Presentation

Visual Look

The store front, and an interesting entrance way, helps in delaying the passing of customers; and

establishes a positive first impression which might lead to that customer entering the store. Onceinside, the store’s visual messages should cr eate feelings of consistency or clarity. Consistent aislepatterns, efficient merchandising and unambiguous signs support the overall brand image of thestore.

Visual Hook

A visual hook is analogous to the ‘hook’ in music that produces a hit tune. It is a refrain, oftenrepetitive, which calls attention to the store and re-enforces both the store brand and consumerssentiments towards the brand. Powerful visual hooks are created integrating visual merchandisingcomponents to give a more memorable impression. An exciting store presentation, effectively signedproduct offerings, powerful interior displays, in-store animation or events, all help attract customers to

the store.Effective visual hooks provide an impetus to consumers, especially the impulse buyers. By creating acompelling hook for product offerings using the appropriate techniques a retailer can greatly increaseimpulse buys and encourage passing trade. Increasingly brand hooks use sensory mechanisms for atotal image package.

Leveraging Positive Impressions

By creating a consistent positive impression in the mind of consumers they are able to recognise andidentify with particular store brands. This is especially important with retailers with multiple locationswhich differ in size, shape, design and merchandise mix; here the creation of continuity of image byhaving common elements throughout the chain is essential. By extending common exterior and

interior elements to all stores the retailer can leverage the investment and create an even moredurable store brand.



169. Interior Identifiable as Store Brand170. Interior Visual Trademark171. Interior Unmistakable as Store Brand172. Interior Fittings173. Interior Signage174. Interior Displays175. Consistent and Compelling Interior Image

176. Brand Hook177. Positive impressions

The following parameters are examined in the Customer Surveys:

178. Is the Store Look appealing?179. How effective was the Visual Look?180. Was the entrance inviting?181. Did you have a positive first impression when you entered the store?182. Was the store interior well organised and not confusing?183. Were you able to navigate the store in a consistent and logical way?184. Does the store have a Visual Hook with which you can identify?

185. How effective was the Visual Hook?186. Did the Store Interior draw your attention?187. Did the Store suggest that there was something interesting for you?



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188. Was the visual merchandising attractive?189. Have you used other stores in the same chain?

190. Did you like the Store layout?191. Was the floor plan logical?192. Did you think the floor plan was small?

193. Did you think the floor plan was medium or average size?194. Did you think the floor plan was large?195. Did you like the Store’s interior in general?196. What did you think about the interior finishes?197. What did you think about the ceiling?198. What did you think about the lighting?199. What did you think about the displays?200. Were the displays informative?201. What did you think about the sales desk or counters?202. Were there any sitting areas?203. Would you prefer to stand or sit whilst waiting?204. What did you think about the interior graphics?205. What did you think about the advertising displays?

206. What did you think about the store image or branding elements?207. What did you think about the product displays?208. What did you think about the product dividers?209. What did you think about the shelving or product stacking?210. What did you think about the product accessibility?211. Were the products displayed in a manner consistent with their value?

212. What did you think about the Store Lighting in general?213. Was the lighting level sufficient?214. Did you see any faulty light fixtures with lamps burned out?215. Was the lights properly aimed or directed?216. Did the store have old-style or modern lighting?217. Did the store have accent lighting to highlight particular products?

218. Should the store upgrade or modernise the lighting?

219. What sort of Flooring did the store have?220. Was the flooring dirty, stained, or ugly?221. Was the flooring old or worn out?222. Did the flooring need to be cleaned?223. Should the store replace the flooring?

224. What did you think about the Store Floor Plan?225. Could you easily move though the floor pattern?226. Should the store change the floor plan?

227. What did you think about the Store Floor Colour Scheme?

228. How would you describe the Store Colour Scheme?229. Should the store change or modernise the colour scheme?

230. What did you think about the Changing Rooms, Rest Rooms and other facilities?231. Were the store’s facilities clean?232. Were the store’s facilities decorated appropriately?233. Should the store change or modernise their facilities?

234. What did you think about the Store Product Pricing system?235. Are all products priced using a pricing system for a uniform appearance?236. Are the prices attached in a consistent pricing channel?237. Should the store change or modernise the Product Pricing system?

238. What did you think about the Store Interior Signing?



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239. Did the Store Interior Signing reinforce the Store Brand?240. Did the store have old or obsolete signs displayed?241. Did the store have inconsistent or confusing signs displayed?242. Should the store change or modernise the Store Interior Signing system?

243. What did you think about the Store Maintenance and General Appearance?

244. Did you notice any badly maintained areas?245. Was the sales area clear of miscellaneous paraphernalia?246. Were the staff untidy?247. Were the product displays badly maintained?

248. What did you think about the store in General?249. Were you comfortable spending time in the store?250. Were you comfortable spending your money in the store?251. Would you be happy taking your family to the store?252. Would you be happy taking your friends to the store?

Ambience & Layout



253. How would you describe the Store Ambience and Layout254. What did you think about the store Lighting255. What did you think about the store Music256. What did you think about the store Signage257. What did you think about the Store Front258. What did you think about the store Display Windows259. What did you think about the store Scent or Smell

260. What did you think about the store Fixtures261. What did you think about the store Temperature262. What did you think about the store Hygiene263. What did you think about the store Theme Setting264. What did you think about the store Posters, Signals, cards265. What did you think about the store Floor Space266. What did you think about the store Product Grouping267. What did you think about the store Traffic Flow Pattern268. What did you think about the store Colours used269. What did you think about the store Personnel Behaviour270. What did you think about the store Personnel Product Knowledge271. What did you think about the store Payment systems272. What did you think about the store availability of other facilities

273. What did you think about the overall store Style274. What did you think about the overall store Friendliness



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POS & Displays



275. What did you think of the Store Display Lighting?

276. Did the Store Displays have any Motion or Animation?277. Were the Store Displays Customised or did they appear to be Standard?278. Did the Store Displays have any noticeable Features?279. Could you see into or inspect the product content of Store Displays?280. Were the contents of the Displays Visible?281. Did the Store Displays send a Message, E.g. product quality or product value?282. Were the Store Displays well Designed?283. Did the Store Displays have a Unity or were they Confused?284. Were the Store Displays in Proportion to the Store and to the other Store Fittings?285. Were the Store Displays a Focal point of the store?286. Did the Store Displays encourage you to spend more or less than you had intended?


Audit of Retail POS & Displays by Expert Observation Surveys:

287. Degree to which Displays make it into shoppers’ line of sight.

288. Identification of the Display types and locations that generate the most impressions andgreatest consumer activation.

289. Amount/percentage of time spent engaging with the Displays (by audit variables such asdisplay type, location, and placement).

290. Degrees to which the Displays are noticed, stopped at, interacted with, and drivepurchases.

291. What is the emotional response (valence) to the Displays?292. What is the shopper’s track or path throughout the store?

293. What are the search patterns and navigational strategies shoppers use to find and selectproducts? How much time is spent considering the product categories?

Display Type:

294. Floorstands295. Endcaps296. Powerwings / sidekicks297. In-line / gondola / full-line merchandisers (specialty)298. In-store media299. Digital signage

Location of each display:

300. End of aisle (front or back)301. Perimeter / racetrack302. In-aisle303. Front end

Placement of display:

304. Primary305. Secondary

Variables:

306. Category and brand the display is advertising307. Static vs. Motion



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308. How was the Product positioned309. Whether it is interactive310. Whether it has video or audio

Lighting



311. What did you think about the Store Lighting?

312. Was the Store Lighting too little?

313. Was the Store Lighting too much?

314. Was the Store Lighting too intrusive?

315. Was the Store Lighting too hot?

316. Was the Store Lighting warm?

317. Was the Store Lighting cold?

318. Was the Store Lighting too coloured?

319. Did the Store Lighting display the products well?

320. Was the Store Lighting designed to hide the products?

321. Did the Store Lighting allow you to see the product colours or textures or details wellenough?

322. Could the Store Lighting be improved?

323. How could the Store Lighting be improved?

Store Facilities



324. Did the store have any additional Facilities?

325. Which additional Facilities did you use in the store:-a. After-sales servicesb. Arranged appointments

c. Baby strollers or Baby Changing facilityd. Baby-sitting or Children’s Area e. Beauty salonf. Bridal registryg. Credit or store card facilitiesh. Delivery servicei. Fitting rooms

j. Free (or low-cost) parkingk. Gift vouchersl. Gift wrappingm. Information countersn. In-house designerso. Loyalty cards or schemes

p. Personal shoppersq. Refreshmentsr. Repair services



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Overall Store Evaluation



351. What ranking do you give to your First Impression of the Store (1 to 10)?

352. What ranking do you give to the Store after your first impression (1 to 10)?353. What ranking do you give to the Store in comparison to the competitors (1 to 10)?

Derived from the Customer Surveys. Customer Ranking of the Retail Site (1 to 10):

354. The store's location in your community355. The store's physical location in the neighbourhood and street356. The location and amount of parking available to customers357. The physical appearance of the store's parking lot358. The store's architectural design359. The exterior colour of the store360. The location and size of store windows

361. The location and size of store doors362. The accessibility of the store for the physically handicapped363. The size and location of the outside store identification signs364. The graphic design of the outside store identification signs365. Lighting of the outside store identification signs366. Outside lighting around the store and parking areas367. Outside store security368. Landscaping around store and parking areas369. Overall outside appearance370. Window treatments371. Types of window displays372. The overall store layout373. Aisle spacing for handicap access

374. The interior design of the building375. The interior wall, floor and ceiling colours376. The floor covering377. The interior fixtures and display areas378. The interior lighting379. Adequate heating and air conditioning380. Rest room facilities381. Location of a customer service area382. Availability of a customer courtesy telephone383. Availability of water, coffee, beverages and snacks for customers384. Play area, toys and activities for children385. The organisation of the product displays386. Demonstration area for products

387. Product information displays and counters388. Display of specific products389. Service department layout and access390. Integration of technology with product displays391. Use of product packaging in display areas392. Storage of inventory393. Overall housekeeping and visual appeal

Customer suggestions revealed during Customer Surveys:

394. Changes to the look of the store395. Changes to the feel of the store

396. Changes to the layout of the store397. Changes to the physical entry and access points398. Changes to the store displays



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399. Changes to the product offerings400. Changes to the product quality401. Changes to the product values

Store Personality Survey


402. Retail store personality variables.

403. Select the scale that best indicates the way you would describe the store.a. Good selectionb. High pricesc. High qualityd. High fashione. Good servicef. Easy to shop ing. Friendlyh. Good sales and promotionsi. Sophisticated

j. Traditionalk. Differentl. Take chancesm. Confidentn. Creativeo. Sociablep. Stands out in the crowdq. Simplified lifestyle



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Part G : In-store Customer Purchasing Behaviours


In-store and Impulse-buying Decisions

Understanding the needs, purchasing behaviour, and changing lifestyles of consumers is critical inbeing able to deliver on their immediate and future needs. Whereas consumer decisions are no longerlimited to in-store product exposure, shoppers are making an overwhelming number of theirpurchasing decisions in-store. In developed countries the in-store decision and impulse-buying ratesare over 40% of purchases. Notwithstanding consumers being increasingly mobile, social and incontrol of their information sources, in-store decisions and impulse-buying seems to be here to stay.

The consumer’s route to a purchase has changed, with online information, smartphones, shoppingapps, mobile coupons, and many other innovations; however in-store marketing at many differenttypes of stores categories and brands has maintained the connection with consumers whom continue

to be influences at the point-of-sale.The effectiveness of the In-Store Experience, the in-store environment, merchandising and displays,will indicate tangible improvements to in-store purchasing decision rates.

Three key components affect the in-store decision rate factors:

Generally planned purchases Brand or Product substitution Unplanned purchases

Research shows that an important part of the marketing mix is the use of materials and devices thatstimulate sales where the action is – the point of purchase.

The decision-making process of shoppers frequently does not occur until they actually see a productin the store. Therefore, the way a product is displayed in a store and is supported by in-storemarketing materials can often be instrumental in leveraging sales.

Purchasing Behaviours

Customer Surveys of AGDMedia: as an Excel file: Part_G

1. Goal orientated behavioursa. Like to get exactly what they set out forb. Aim is to complete shopping trip as rapidly as possible

2. Research & Planning behaviours

a. 40% of shoppers use pre-store media to plan their trip.b. 55% of shoppers make a shopping list whether mental, handwritten, or digital.

3. Hunter Gatherer behavioursa. Enjoys seeing what new products are available while shopping the store.b. Enjoys getting ideas while shopping.

4. Product Offering and Selection behavioursa. Overall product quality, good service, quick checkout and value are the most

important considerations for shoppers when choosing a retailer.

5. Value seeking behavioursa. Willing to wait for sales

b. Will shop multiple retailers for best prices



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Consumer Store Behaviours

When consumers enter a store they are not so much revealing where they like to shop, but a complexmatrix of their own lifestyle, values, interests, social orientation, work and spare time activities, income

levels, and so forth.

This matrix which defines the consumer is very variable and it is increasingly difficult for retailers andbrand manufacturers to pigeon-hole their customers into stereotypical groups.

Predictive shopper profiles are based on the consumers’ stated preferences, their browsing habits,and the products that they actually purchase or abandon in their shopping trips.

Consumers are clustered into segments to understand the attributes and characteristics that are mostimportant to individuals as they decide where and when to shop. Consumer surveys investigate abroad set of lifestyle and shopping characteristics on graded scales and these are correlated andanalysed to create consumer groups based on their demographic, lifestyle and shopping parameters.These factor groupings form the basis of the creation of consumer segments, which can be analysedfor shopping behaviour patterns, price sensitivity, retailer preferences, retailer loyalty, demographic

differences, and opportunities for conversion.These consumer segments have unique attributes and patterns of behaviour as they relate to theirshopping patterns and retailer selection. Data seems to suggest that there are four basic profileswhich should be of concern to retailers:


6. Time conscious consumera. Lifestyle time stressedb. Get in and get out of the store quickly.c. Pressure from not having enough time in stored. Always in a hurry

e. Not in a low income groupf. Perceived budgetary constraintg. 18-44 demographic grouph. Full time employedi. No time for circulars or coupons

j. Tends to use a limited number of retailersk. Random navigation of storel. Describes self as easily temptedm. Shops with childrenn. Does not often use a written list.o. Second highest purchases on impulsep. Highest total basket average

7. Time available consumera. Shopping is a hobby or social eventb. Very suggestible and influenced by retailers’ promotional activities c. Enjoys shoppingd. Likes to look at new productse. Likes browsing in the storef. 55+ demographic groupg. Lower disposable incomeh. Heavy use of circulars which drives retailer choicei. Knows many retailers and is not very retailer local

j. Random navigation of storek. High receptivity to stores with quality private label productsl. Receptive to retailers with a variety of product types and package sizesm. Most satisfied shopper on for overall satisfactionn. Describes self as impulsive and easily tempted



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o. Highest purchases on impulsep. Makes most weekly tripsq. Spend longest time in store

8. Necessity consumera. Shopping trip is always organised

b. Purchasing goalsc. Time goalsd. Shopping trips executed according to plane. Male 55+ demographic groupf. Low circular useg. Tends to use few retailersh. Seeks familiarity with store layouti. Planned navigation of store

j. Most retailer loyalk. Most consistent use of written listl. Not interested in bargain huntingm. Describes self as controlled and restrainedn. Most accurate in predicting total spend

o. Lowest purchases on impulsep. Least number of trips per weekq. Shortest time in store

9. Cost conscious consumera. Seeks best buys and lowest pricesb. Willingness to shop around for the lowest pricec. 14-24 demographic groupd. Least retailer loyale. Highest circular usef. Highest coupon useg. Most likely to use pre-store media to plan triph. Least satisfied on overall satisfaction score

i. Homemaker, Housewife, House husband, Single parent family, One personhousehold, demographic

j. Most likely to Not purchase an item which was Not budgeted for pre-storek. Lowest total basket average

In-store Consumer Decision Making

Locations of consumer Purchasing Decision Making.

Retailers should be aware of how and where their customers are making a majority of their purchasedecisions.

Purchases should be segmented into categories and then analysed for in-store purchase decisionrates. This provides an indication of what purchases shopper s’ anticipate as opposed to what theyactually purchase.

The four categories that purchases are classified into are:


10. Specifically planned: Purchases the shopper specifically identified by name or brand, beforeentering the store, and which they then actually purchased in-store.

11. Generally planned: Purchases that were referred to generically, before entering the store, butnot bought by particular brand.

12. Unplanned: Purchases that were not mentioned, before entering the store, and were boughton impulse.



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13. Substitutes: Purchases that were specifically identified by name or brand, before entering thestore, but the actual purchase reflected a substitute of brand or product.

The in-store decision rate is calculated by taking the sum of the purchases that fall under GenerallyPlanned, Unplanned, and Substitutes categories. The average in-store decision rate, across all retail

sectors, in developed countries, is about 40%.The suggestion that shoppers are planning their purchases less, and deciding more at the shelf, is notstrictly accurate as more shoppers are stating that they did not find what they were looking for whenthey entered the store. This means that the product, brand or size of the article they were seekingwas not available and thus they had to purchase something else, or go to another store.

When shoppers do make an impulse purchase this is usually not because of ‘impulsiveness’ butbecause it was a purchase of something that they had forgotten and they remembering that theyneeded or wanted an item once in the store. The second reason for impulse buys was becauseshoppers say that the item was on sale or at a lower price than at a competitive store.

Consumer Surveys

In-Store Purchase Process and Evaluation Survey


14. In general, do you feel that prices are:a. Much too highb. Somewhat highc. About rightd. Do you believe prices are particularly high in your areae. Do you think high prices are due to greedy companiesf. Do you think high prices are due to taxes

g. Do you think high prices are due to supply companies setting high pricesh. Do you think high prices are due to the laws of supply and demandi. Do you think high prices are due to prices which always go up seasonally

j. Do you think high prices are due to other factors

15. Thinking about the last several years, how often do you buy premium products?a. Alwaysb. Frequentlyc. Sometimesd. Seldome. Never

16. Think about the stores you go to most often. Is they closer to:

a. Your homeb. Your place of workc. Your favourite shopping area

17. About how many minutes does it take to get to the store you go to most often?d. Under 5 minutese. 5-10 minutesf. 10-15 minutesg. 15-20 minutesh. More than 20 minutes

18. Think about the store you go to most often. What are some reasons this store is yourfavourite?

a. Convenient locationb. Convenient hours of operationc. Close to work



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d. Close to homee. Close to favourite shopping areaf. Lowest pricesg. Fast paymenth. Fast in and outi. Happy with brands

j. Never had trouble with their productsk. Have a credit card for that brand of storel. Like the productsm. Friendly servicen. Force of habito. Other

19. In an average month, about how much does your total household spend on the product?

20. Do you have a Store or a Store-linked card?

21. What are the three best features you would expect to get with a store card?a. Generous grace period

b. Bonus rewards for frequent purchasesc. Low interest rated. Use for several different companiese. Easy to get onef. End of year rebateg. Free giftsh. Promotions

Shopper Involvement Study


Indicate your agreement with each of the following statements:

i. Very Strongly Agreeii. Strongly Agreeiii. Agreeiv. Disagreev. Strongly Disagreevi. Very Strongly Disagree

22. At the time of the purchase decision, I had little time to search for information.

23. There was a wide difference in performance between the available choices.

24. Because the product was being offered on sale for a limited time period, I felt I needed to

purchase the item quickly.

25. If this product broke down I would feel that replacement or repair was a high priority.

26. My (our) budget was very tight at the time of the purchase.

27. I felt obligated to make a careful analysis of the alternatives before making a selection.

28. I have one or two favourite stores I shop in for this type of purchase.

29. I felt it was necessary to talk to a number of friends or family because of my lack ofknowledge and expertise about this product category.

30. I felt I would obtain a better deal on this item by shopping around and comparing prices.

31. I like to devote considerable time and energy when making a product choice such as this one.

32. Selecting an appropriately styled product was very important to me.



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Store Entry Surveys

Shoppers are randomly interviewed at the entrance of the store locations. Interviews are conductedduring all day parts and all days of the week with a nominal duration of 10 minutes per interview.


54. Planned purchases (unaided category and brand planning)55. Any pre-store path-to-purchase activities shopper engaged in for planned purchases and in

general56. Amount budgeted/expect to spend for planned items and total basket57. General shopping behaviours in channel58. Demographics and profiling information

Upon completion of the pre-entry interview, shoppers were asked to return to the researchers aftercompleting their shopping trip for a post-shopping interview. Information products purchased wasrecorded and the purchase record for each shopper was obtained through electronic capture of tillreceipts. The exit interview recorded products and brands purchased from shopper’s entire basket.


59. Products purchased (category and brand level information)60. Coupon, circular, mobile phone use, etc. used in purchase decisions61. Recall/awareness of displays for product purchases62. Attitudes and perceptions towards retail environment and specific categories.63. Total amount spent and by category.64. Method of payment

Survey research methods measure contemplative opinions of the respondents and rely on techniquessuch as surveys or facilitated focus groups. For accuracy one need a valid sample size which is

usually in the range 500-1500 valid responses.

Store Audit

In preparation for the customer surveys the store layout was surveyed and each day an audit ofspecific display types throughout the store was conducted prior to the start of interviewing. Thepurpose of the store audit is to record and identify the display materials which produce a measureableimpact on customer decision-making and emotional response.

The store audit includes, a traffic flow pattern, an aisle schematic, photographs and spatial position ofeach display present as well as coding of the following information:

Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_G

65. Display Type:a. Floorstandsb. Endcapsc. Powerwings/sidekicksd. In-line/gondola/full-line merchandisers (specialty)e. In-store mediaf. Digital signage

66. Location of each display:a. End of aisle (front or back)b. Perimeter/racetrack

c. In-aisled. Front end



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67. Placement of display:a. Primaryb. Secondary

68. Other variables:a. Category and brand the display is advertisingb. Static vs. motionc. Product on it vs. no productd. Whether it is interactivee. Whether it has video or audio

Supplementary research

Researchers and mystery shoppers equipped with smartphone and mobile applications which couldregister reactions are able to analyse the impact of displays:-

Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_G

69. Degree to which displays (as defined earlier) make it into shoppers’ line of sight.70. Identify the display types and locations that generate the most impressions and greatest

activation.71. Amount/percentage of time spent engaging with these displays (by audit variables such as

display type, location, and placement).72. Degrees to which these displays are noticed, stopped at, interacted with and drive purchases.73. What is the emotional response (valence) to these displays?74. What is the shopper’s track or path throughout the store?75. What are the search patterns and navigational strategies shoppers use to find and select

products?76. How much time is spent considering these categories?



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Part H : Customer Handling


First Impressions Customer Survey

Customer Surveys of AGDMedia: as an Excel file: Part_H


1. What did you think of the store opening hours?

2. What did you think of parking availability?

3. What did you think of the shopper-friendliness of the store layout?

4. What did you think of the salespeople?

5. What did you think of the politeness of the store staff?6. Did you have to wait too long before being served?

7. What did you think of the checkout lines and queues?

8. Did you have to wait too long before being able to finalise your purchases and leave thestore?

9. What did you think of the payment & credit acceptance?

10. What did you think of the delivery policies?

11. What did you think of the amenities?

12. What did you think of the customer follow-up?

13. What did you think about complaints handling?

Queue & Waiting handling

Queue performance is a very important issue for retailers and those who get sales desk staffing

wrong, or have lengthy queues risk creating a poor store image which can harm sales. Customers

hate and avoid queuing and will typically avoid retailers where queues are common.

If shoppers are in a store where they see long queues at the checkout they can be deter from making

full use of their shopping time or budget; indeed they may abandon their planned purchasesaltogether and go to another store. Retailer should have empirical evidence of average wait times and

overall transaction times at each location.

Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_H

Audit of Retail Sites by Expert Observation Surveys:

14. Observations reveal staff schedules are determined by changing customer demand andtrading patterns.

15. Observations reveal that the retailer predicts the optimum number of tills needed to open in15 to 30 minute time slices to maintain a desired service level.

16. Observations reveal a correlation between wait times and conversion rates to help capitaliseon every opportunity.



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17. Observations reveal that the retailer is probably aware of the optimum ratio of till staff tocustomers at which marginal sales exceed the incremental staffing costs.

18. Observations reveal that the retailer is using traffic detectors at store entrances and till points

to monitor shopper numbers and queuing behaviour.

19. Observations reveal that the retailer is able to calculate average queue lengths, wait times

and transaction times.

Interface & Dialogue


Derived from the Customer Surveys:

77. Did the salesperson smile when greeting you?

78. Did the salesperson use age-appropriate and gender-appropriate greetings?

79. Did the salesperson avoid using negative stereotypical phraseology when referring tocustomers or fellow employees?

80. Was the salesperson proactive and ask how he/she may be of service?

81. Was the salesperson immediately visible and available?

82. Did the salesperson hover or make you feel uneasy?

83. Did the salesperson turn away, walk away, or become occupied when you approached?

84. Did the salesperson give precedence over you when someone else approached or to take aphone call?

85. Did the salesperson seem to take regard of your age, gender or appearance?

86. Did you see evidence of food and beverages left by employees?

87. Did the salesperson mention an upcoming break or other call on his/her time?

88. Were any salespersons making personal calls within the earshot of customers?

Staff Response & Attitude to Customers



89. Do you think that the salesperson was able to read the body language of customers?

90. Did the salesperson let chatty customers monopolise their time while leaving other customerswaiting?

91. Did the salesperson call for backup support when lines were forming?

92. Was the salesperson discrete in relation to credit and payment arrangements?

93. Did the salesperson discuss your personal details in front of other customers?

94. Did the salesperson inspect merchandise before bagging it to make sure it was not defectiveor the wrong size?

95. Did the salesperson make sure that you received everything you paid for before leave thestore?

96. Did the salesperson smile at you and say goodbye and encourage you to come again?



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141. Staff Performance: Overall Customer Handling142. Truth & Honesty: Advertising & Promotions143. Truth & Honesty: Store/Outlet Level144. Truth & Honesty: Branded Specialities145. Truth & Honesty: Company Level146. Truth & Honesty: Counter Staff

147. Truth & Honesty: Dedicated Specialities Staff148. Truth & Honesty: Offers149. Reputation at Store/Outlet Level150. Reputation at Company Level151. Reputation of Branded Specialities152. Reputation of Counter Staff153. Reputation of Dedicated Specialities Staff

Staff Interaction with Customers



154. Verbal Contact: Store/Outlet Level155. Verbal Contact: Branded Specialities156. Verbal Contact: Company Level157. Verbal Contact: Counter Staff158. Verbal Contact: Dedicated Specialities Staff159. Written / Internet / Telephone Communications: Store/Outlet Level160. Written / Internet / Telephone Communications: Branded Fashion161. Written / Internet / Telephone Communications: Company Level162. Written / Internet / Telephone Communications: Counter Staff163. Written / Internet / Telephone Communications: Dedicated Fashion Staff164. Written / Internet / Telephone Communications: Promotions & Offers

165. Contract Documentation: Store/Outlet Level166. Contract Documentation: Company Level167. Counter Staff Customer Handling: Store/Outlet Level168. Counter Staff Customer Handling: Branded Specialities169. Counter Staff Customer Handling: Company Level170. Counter Staff Customer Handling: Counter Staff171. Counter Staff Customer Handling: Dedicated Specialities Staff172. Customer Awareness of Product: Store/Outlet Level173. Customer Awareness of Product: Company Level174. Customer Comprehension of Product: Store/Outlet Level175. Customer Comprehension of Product: Company Level176. Customer Confidence at Store/Outlet Level177. Customer Confidence at Company Level

178. Customer Confidence in Branded Specialities179. Customer Confidence in Company Advertising180. Customer Confidence in Company Offers & Promotions181. Customer Confidence in Counter Staff182. Customer Confidence in Dedicated Specialities Staff183. Customer Confidence in Product: Store/Outlet Level184. Customer Confidence in Product: Company Level185. Customer Handling: Store/Outlet Level186. Customer Handling: Branded Specialities187. Customer Handling: Company Level188. Customer Handling: Counter Staff189. Customer Handling: Dedicated Specialities Staff190. Customer Problem Solving: Store/Outlet Level191. Customer Problem Solving: Branded Specialities192. Customer Problem Solving: Company Level



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193. Customer Problem Solving: Counter Staff194. Customer Problem Solving: Dedicated Specialities Staff195. Customer Service: Store/Outlet Level196. Customer Service: Branded Specialities197. Customer Service: Company Level198. Customer Service: Counter Staff

199. Customer Service: Dedicated Specialities Staff200. Customer Service: Offers & Promotions

Customer Complaint Handling



201. Customer Complaint Handling: Store/Outlet Level202. Customer Complaint Handling: Branded Specialities203. Customer Complaint Handling: Company Level

204. Customer Complaint Handling: Counter Staff205. Customer Complaint Handling: Dedicated Specialities Staff

Product Returns & Refund Policy



206. Satisfaction with Existing Retailer’s Returns Policy 207. Satisfaction with Existing Retailer’s Refund Policy



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Part I : Selling Strategies

This data is available on a Corporate basis for AGDMedia

Stores

Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_I

The following parameters are examined by Expert Appraisal:

1. Brand Management2. Product Management3. Marketing & Selling Activity4. Store Presentation & Merchandising5. Product Offering Specifications & Characteristics6. Product Quality Control7. Retail Developments8. Customer Handling9. Product Sourcing & Control10. Financial Controls11. Staff Training / Control & Relations12. Product Throughput Capacity & Control13. Supply System Control & Development14. Distribution Control15. Product Handling Systems & IT

Online Selling

Globalisation and technology is at the heart of future growth. Retail is increasingly a global business,bringing about changes in consumer wealth distribution and the manner in which their demands aremet. A middle class with disposable incomes is now to be found in many developing countries andthis has altered the landscape of retail distribution, with the need to service both domestic as well asoverseas consumers.

As input materials prices, wages and transportation costs fluctuate, and as currency rates shift aroundthe world, there is a dynamic within the retail supply chain in relation to where goods aremanufactured, how they are distributed, and how they are shipped to their final consumers. Retailersincreasingly have to turn their focus away from domestic consumption, and to the complexity of cross-border sales, made even more complex due to different platforms of selling internationally to moresophisticated global consumers.

Over 25% of online shoppers around the world (mainly the younger demographics in the developingcountries) made their first online purchase within the two years. Furthermore consumers in the rapidlydeveloping economies are shopping online nearly four times as often as those in the post-industrialdeveloped countries. Social media also allows people to research or follow specific retailers or brandswithout limits on borders. Each of these trends, as they continue to evolve globally, creates both directand indirect impacts on how bricks-and-mortar stores are perceived in different countries.

Each year some 50 million consumers in the Asia-Pacific region will join the ranks of onlineconsumers. By 2020 these new consumers will be spending an amount equivalent to that spent byconsumers in developed countries now. E-commerce sales growth in the Asia-Pacific countries isincreasing at greater annual rates than those in developed countries. The reason for this is not onlythe nature of the consumer demographics in these countries, but also the deficiencies in the natureand distribution of traditional retailers.

As e-commerce and mobile commerce and supporting infrastructure accelerates around the world, itis encouraging new distribution channels in developing markets. Multinational retailers can test the



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22. Customer Handling23. Product Sourcing & Control24. Financial Controls25. Product Throughput Capacity & Control26. Supply System Control & Development27. Distribution Control

28. Product Handling Systems & IT29. Delivery Promptness30. Complete Delivery

Web Presence

Retail website, product and satisfaction survey:

Customer Surveys of AGDMedia: as an Excel file: Part_I

31. How often do you visit the company’s site?a. Every day

b. Several times a weekc. Several times a monthd. About once a monthe. Less than once a monthf. Never visited

32. How did you get to the company’s site?g. I knew the site nameh. Search enginei. Guessed the address

j. Saw on TV, heard on radiok. Newspaper or magazine advertisementl. Friend told me

m. Internet advertisementn. Link from another page

33. How often do you use the web to find product information?o. Everydayp. Several times a weekq. About once a weekr. Several times a month

34. Did you find what you were looking for on the company’s site?s. Yes, I found exactly what I was looking fort. Yes, but not the brand/size/colour/ etc.u. I found a related product but not what I wanted

v. No, I didn't find what I was looking for

35. If you did not find exactly what you wanted, explain where you found it.

36. Do you have one or two specific suggestions about how we should add to or improve thesite?



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Website Design


General Website Evaluation of the retailer:

37. Did the menu of items on the home page make sense to you?

38. If no, what would you like to see changed?

39. Did you experience any problems downloading files?

40. Approximately how many pages did you browse during this visit?

41. How satisfied are you with your experience with the web site?

42. If you are not totally satisfied, describe the reasons for your dissatisfaction below?

43. What additional information or features would you like included on the web site?

44. How frequently do you visit the company’s website?a. Once only

b. Dailyc. Weeklyd. Monthlye. Infrequently (less than once a month)

45. What prompted your visit on the last occasion?f. Doing research for workg. Doing research for schoolh. Recommendation of friend/associatei. Just curious

j. Found the site while surfingk. Wanted to download filesl. Looking for update on earlier informationm. Professional developmentn. Linked from other siteo. Other

46. How would you rate yourself as an Internet user?p. Expertq. Goodr. Beginner



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54. Did you find what you were looking for on the company’s site?a. Yes, I found exactly what I was looking forb. Yes, but not the Brand / Size / Colour / Etc.c. I found a related product, but not what I wantedd. No, I didn't find what I was looking for

e. Other

55. If you did not find exactly what you wanted, explain what you were looking for.

56. How likely are you to recommend and revisit the company’s site?a. Very Likelyb. Likelyc. Unsured. Unlikelye. Extremely Unlikelyf. Other

57. Do you have a suggestion or recommendation to improve the company’s site?

58. How likely are you to return to the company’s Web site?

59. How likely are you to recommend the company’s Web site?

60. What features had influenced your decision to continue using the website?

61. What is it about the site that you would most like to see improved?

62. What changes or additional features would you suggest for the website?

63. In a typical week, how many hours do you spend visiting this website?

a. 0 to 1b. 1 to 2c. 2 to 4d. 4 to 10e. More than 10

64. How did you first hear about this site?a. Search engineb. Another web sitec. Newspaper/magazine articled. Friend or business associatee. Advertisement

f. Don't know/don't rememberg. Other



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Website Visitor Follow-up

Demographics, how did the visitor find the site, what are they look for, hobbies, access, suggestions.


65. How did you find out about the company’s site?

a. Followed link from another web pageb. Followed a graphical banner/icon from another web pagec. Found by using a search engined. Saw postings to www-related news groupse. Received e-mail from mailing listf. Was told URL by friendg. Read about it in newspaper/magazineh. Don't remember or Other

66. What is your age?a. under 13b. 13-17c. 18-34

d. 35-49e. 50-64f. 65 or older

67. How many hours per day are you on-line?a. 0-1b. 1-2c. 2-3d. 3-4e. 4-5f. More than 5

68. What do you enjoy doing in your spare time?

a. Theatre or cinemab. Huntingc. Sportsd. Readinge. Video / Computer Gamesf. Moviesg. Fishingh. Arts and Craftsi. Automobiles

j. Triviak. Restaurantsl. Gardeningm. Cookingn. Computerso. Other

69. What do you use the internet for?a. Information Gatheringb. Academic Researchc. Shoppingd. Gamese. Newsf. Sports Newsg. Real Estateh. E-maili. Job Hunting

j. Classifiedsk. Stock Market



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l. Other

70. From where do you most often access the Internet?a. Homeb. Schoolc. Office

d. Leisure site or Other

71. If you have, or plan to purchase goods on the Internet, what kinds of goods would you bemost interested in?

a. Foodb. Clothingc. Household goods & articlesd. Electricals & Electronic productse. Computers or peripheralsf. Softwareg. CDs/DVDsh. Flowersi. Concert tickets

j. Travelk. Fast foodl. Books or magazinesm. Servicesn. Financial & Insurance product

Website Feedback

Website feedback and respondent Internet usage:


72. Rate the company’s web pages for the following aspects:a. Homepageb. Customer Support informationc. Product informationd. Contact informatione. Downloads

73. What were your reasons for your last visit to the company’s site?a. Product informationb. Customer Support informationc. Competitive information

How likely are you to?

74. Revisit this site on a regular basis

75. Recommend the company’s site

76. Where did you hear about the company’s website?a. Online or link from another web siteb. Online news servicec. Newspaper or magazined. Friende. Search enginef. E-mail advertisement

77. How often do you visit the company’s site?a. Every dayb. Several times a week



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c. About once a weekd. Several times a monthe. About once a monthf. Less than once a monthg. Never visited

78. When browsing the company’s site, how long do you typically spend here?

79. How frequently do you surf the web?a. Every dayb. Several times a weekc. About once a weekd. Several times a monthe. About once a monthf. Less than once a monthg. Not sure (don't keep track)

80. In a typical week, how many hours do you spend surfing?

81. What do you regularly use the web for?a. Newsb. Work researchc. Personal researchd. Investmentse. Shoppingf. Auctionsg. E-mailh. Chat/communitiesi. Web-based address book/calendaring

j. Banking

82. How often have you used the web to gather product information?

a. Every dayb. Several times a weekc. About once a weekd. Several times a monthe. About once a monthf. Less than once a monthg. This is my first time

83. When do you plan to purchase a product via the internet?a. Immediatelyb. Within the next weekc. Within about a monthd. Within 3 months

e. Within 6 monthsf. Within a yearg. More than a yearh. Not sure

84. What is your primary use of the product(s) / service(s)?a. For workb. For homec. For school



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Web Demographics


85. How did you find about the company’s site?

a. Followed a text link from another web pageb. Followed a graphical banner/icon from another web pagec. Found using a search engined. Saw posting on a newsgroupe. Guessed the URL addressf. Was told URL by friendg. Read about it in a newspaper/magazineh. Remembered to participate from last surveyi. Don't remember

86. How long have you been using the Internet (including using e-mail, gopher, ftp, etc.)?a. Less than 6 monthsb. 6 to 12 months

c. 1 to 3 yearsd. 4 to 6 yearse. 7 years or more

87. What is your primary language (i.e., the one you speak most of the time)?

88. This is a sensitive question that can help Internet developers to understand the needs ofcurrent web users - it is not intended to offend.

a. Are you disabled or impaired?b. Rather not sayc. Vision impairedd. Hearing impairede. Motor impaired

f. Cognitively impairedg. Not impaired

89. How frequently do you access the internet from the following places?a. Homeb. Workc. Schoold. Leisure locatione. Other

90. Who pays for your Internet access?a. Self/spouseb. Parentsc. Workd. Schoole. Don't knowf. Other



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Internet Shopper

Study benchmarking internet use and shopper profiles and behaviour:


91. Did you personally make, influence, or participate in any purchases on the Internet during the

past 3 months?

92. About how much in total did you spend on those purchases:

93. About how much of this was spent on gifts for others:

94. What types of products did you purchase on the Internet?a. Groceriesb. Softwarec. Books or magazinesd. Computer hardwaree. Music, CDs, recordingsf. DVDsg. Home Electronics

h. Travel (airlines, car rentals, hotels)i. Clothing j. Flowersk. Tickets (concert, movies, etc.)l. Services (insurance, legal)m. Other itemsn. Other services

95. About how much did you & all other people in your household spend for gift-giving during thispast 3 months?

96. Overall gift purchases, in total:

97. About how much of that was spent on:a. Purchases at local retail stores:b. Purchases through mail-order catalogues:c. Purchases on the Internet:

98. About how many hours per week is a computer in your home usually used on-line for e-mailor the Internet?

99. How many hours per week is spent on your home computer:a. personally on-line for e-mail or Internet accessb. personally for purposes other than on-line accessc. by someone else on-line for e-mail or Internet accessd. by someone else for purposes other than on-line access

100. Think about your own personal use of a computer in your home just during the last 3

months. About how often did you use it for each of the following activities?i. Dailyii. 2-3 times a weekiii. Once a weekiv. 2-3 times a monthv. Once a monthvi. Under once a monthvii. Not at all

a. Check or send e-mail messagesb. Look at financial information (stocks, trends)c. Read on-line news or magazinesd. Conduct business-related worke. Visit Internet sites related to my hobbies

f. Visit auction sitesg. Visit other retail sites looking for merchandise



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h. Visit sites looking for tickets or reservationsi. Play games

j. Look for job opportunitiesk. Find & view photographs, clipart, or imagesl. Search for or download softwarem. Chat on-line

n. Visit message news-groups

Below are some statements of people’ s attitudes toward the Internet.

“Which best indicates how well the statement describes you personally. “

“Even if you don’t use the Internet, from what you may have heard about it, which bestreflects your impressions. “

How well does the statement describe you?

101. I think on-line buying is (or would be) a novel, fun way to shop.102. I like the help & friendliness I can get at local stores.

103. For me, shopping in stores is a hassle.

104. I think Internet shopping would avoid the hassle of local shopping.

105. Local stores have better prices & promotions than Internet stores.

106. I’ d have a hard time searching the Internet to find what I need.

107. I don’ t think Internet stores carry things I want.

108. I dislike the delivery problems & backorders of Internet buying.

109. I find the Internet ordering process is hard to understand & use.


110. I don't want to give out my credit card number to a computer.

111. I think Internet shopping offers better quality than local stores.

112. I don't know much about using the Internet.

113. I often go to the Internet to preview products.

114. I would like not having to leave home when shopping.

115. I like it that no car is necessary when shopping on the Internet.

116. I often go to the Internet for product reviews or recommendations.117. I like having products delivered to me at home.

118. I want to see things in person before I buy.


119. I think Internet shopping offers better selection than local stores.

120. I don’ t like having to wait for products to arrive in the mail.

121. None of my friends shop on the Internet.

122. I would shop on the Internet (more) if the prices were lower.

123. I dislike the idea of shipping charges when buying on the Internet.



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124. I often buy using lay-away or store payment programs.

125. I think local stores have better service policies than Internet stores.

126. I always search for the lowest price in just about everything I buy.

127. I worry about my credit card number being stolen on the Internet.


128. I want my purchases to be absolutely private.

129. Buying things on the Internet scares me.

130. I often return items I have purchased.

131. It would be a real hassle to return merchandise bought on-line.

132. I think the Internet offers lower prices than local stores.

133. It’ s hard to judge the quality of merchandise on the Internet.

134. I like the ‘energy’ & fun of shopping at local retail stores.

135. I enjoy buying things on the Internet.

136. I like browsing on the Internet.

137. I like to go shopping with my friends.

138. I just don’t trust Internet retailers.


139. When it comes to promoting causes, I am a doer & not just a talker. I use the Internet toactively support causes that make people or communities better.

140. I hate repetition & I don’t want the same old thing. I am excited by a million web pages toexplore.

141. In today’ s competitive world, you make dust or eat dust. I use the Internet to make me morecompetitive.

142. I want my family to run smoothly & I use the Internet to make me & those I love moreproductive & successful.

143. Internet games unlock my imagination & help me to meet interesting people & do neat stuff.

144. Hobbies are a very important part of my life. I use the Internet to expand my world offascinating hobbies, interests, & activities.

145. I am fascinated by art, culture, & knowledge from around the world. I use the Internet toexplore art & culture.

146. I consider myself an expert on the computer. When people have questions about theInternet, I always have the answer.

147. I have lots of friends & stay close to my family. I spend a lot of time on the Internet writingfamily & friends with e-mail.

148. On-the-job productivity is the key concern for me. I use the Internet to help me get moredone with the time & energy I have to spend on work-related activities.

149. I use the Internet to meet interesting people. I watch chat rooms & participate with peopleon topics I find interesting.

150. I love using the Internet to shop. It’ s fun & easy.



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151. For some people the following things are hard; but not for others. Tell us which are hard foryou:

a. Sending or reading email messagesb. Using word-processing programsc. Installing computer softwared. Configuring computer drivers

e. Fixing a system (e.g., Windows) problemf. Installing an operating system (e.g., Windows)g. Browsing the Interneth. Using an Internet search enginei. Making a purchase on the Internet

j. Finding the best price on the Internetk. Using an Internet shopping Appl. Finding Internet-retailer ratings


152. It is important to me to be treated well

153. I like the ‘royal treatment’ in stores

154. I have somewhat old-fashioned tastes and habits

155. I like my clothes to look up to date

156. I never have enough time to shop

157. I think I am a little bit wild

158. I think shopping is fun

159. I often buy things on impulse

160. I have lots of leisure time


161. I expect to have more money next year

162. My world seems to be coming apart at the seams

163. I think I am a smart shopper

164. I like to be outrageous

165. I feel I get a raw deal out of life

166. I think a woman's place is in the home

167. I prefer stores where prices are always low

168. I never seem to have enough money

169. I regularly read the newspaper

170. I have more money now than last year

171. When I shop, I just want to get it over with



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Online Purchases


172. How many online purchases have you made in the last month?

a. Noneb. 1-4

c. 5-10

d. 11-15

e. 16+

173. For whom do you primarily shop for online?

a. Yourself

b. Family members

c. Friends

d. Business

e. Other

174. What is your most important consideration when shopping online?

a. Product selection

b. Competitive prices

c. Convenience

d. Promotions

e. Ease of use

f. Security

g. Other

175. When you purchase online, you purchase for:

a. Holidaysb. Birthdays

c. Special Events

d. Personal Interests

e. Travel

f. Business

g. Other

176. What are the top two Product or Special Interest Group sites you visit?

177. Before starting this survey, how familiar were you with the company’s website?

a. Not familiarb. Heard of website

c. Visited website

d. Made purchases

178. How did you hear about the company’s website?

a. Did not hear about it

b. In store advertising

c. Friend or family

d. Advertising

e. Referred by another website

f. Other



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179. How many times did you visit the company’s website over the last month?

a. Never

b. 1-3

c. 4-6

d. 7-10

e. 11+f. Don't remember

180. How beneficial is the idea of the company’s website to you?

a. Not beneficial

b. Somewhat beneficial

c. Beneficial

d. Very beneficial

181. Which item would you be interested in purchasing from the company’s website?

182. Given the item you have specified, now how beneficial might the website be to you?

a. Not beneficialb. Somewhat beneficial

c. Beneficial

d. Very beneficial

183. If you were buying a GIFT, which items on the company’s website would you consider?

184. How many purchases have you made at the company’s website over the last year?

a. None

b. 1-3

c. 4-6

d. 7-10e. Don't remember

185. How would you describe your experience visiting the company’s website?

a. Never visited site

b. Poor

c. Mediocre

d. Neutral

e. Good

f. Excellent

186. Do you have any comments or suggestions for the website?

187. How satisfied are you with the product(s) purchased?

a. Overall quality

b. Value

c. Purchase experience

d. First use experience

e. Usage experience

f. After purchase service (warranty, repair, help desk)



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188. How long have you used the product(s)?

a. Less than 1 month

b. 1 to 6 months

c. 6 months to 1 year

d. 1 to 2 years

e. 2 years or more

f. Never used

189. How often do you use the product(s)?

a. Once a week or more often

b. 2 to 3 times a month

c. Once a month

d. Every 2-3 months

e. 2-3 times a year

f. Once a year or less often

g. Do not use

190. Overall, how satisfied are you with the product(s)?

a. Very Unsatisfied

b. Unsatisfied

c. Somewhat Satisfied

d. Very Satisfied

e. Extremely Satisfied

191. Compared to other product(s) in this category that are available, would you say that

the product(s) is:

a. Much better

b. Somewhat betterc. About the same

d. Somewhat worse

e. Much worse

f. Don't know or never used

192. Will you use/purchase the product(s) again?

a. Definitely will

b. Probably will

c. Might or might not

d. Probably will not

e. Definitely will not

f. Never used

193. How likely are you to recommend the product(s) to others?

a. Definitely will recommend

b. Probably will recommend

c. Not sure

d. Probably will not recommend

e. Definitely will not recommend

f. Never Used



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194. Based on your experience with the product(s), how likely are you to again buy a

Company Product?

a. Very Unlikely

b. Unlikely

c. Somewhat Unlikely

d. Very Likelye. Extremely Likely

195. If you have contacted customer service, were all problems resolved to your complete

satisfaction?

a. Yes, by the company or its representatives

b. Yes, by me or someone outside the company

c. No, the problem was not resolved

d. No problems / No contact with customer service

Multi-channel Retail Distribution

As technological and communications devices become more commonplace, consumers have beenable to adapt how they shop, how they make purchasing decisions and what they expect and demandfrom retailers. Differentiation between purchasing channels, from mobile, to online, to retail store, isquickly disappearing. Coupled and complementary with this phenomenon are the innovations beingmade within the logistics and distribution industry, which are providing important solutions forsuppliers and retailers to bring products to consumers across the world.

Consumers have at their disposal substantial product and pricing information and competitiveofferings are only a few clicks away. When consumers shop online they expect their orders to beprocessed immediately and shipped to their home within a few days. Retailers tend to believe that

when consumers are in the store they can easily check for a lower price, however the research showsthat consumer are more confident in finding lower pries online.

Where retailers with physical stores can out-perform online sales is in the provision of a buying orstore experience and in the provision of purchasing gratification and other emotional needs.

Consumers now find themselves with a ‘perfect market’ as they have more information on prices andsources of supply; thus they have become more demanding. Albeit in gathering this information, andmaking electronic based purchases, they also willing reveal a huge amount of information aboutthemselves and their purchasing habits. Retailers are increasingly harnessing this information toconvert more sales and to efficiently move product within their supply chains, especially as consumerbehaviour continues to develop and evolve along with technology. The tactics and strategiesemployed by online and traditional retailers alike are changing the way goods are moved, stored andsold; and indeed they are changing the way retailers choose and use physical sites from distribution

centres to retail stores.The advent of e-commerce has entirely changed the retail trade. Technological has led to an increasein information availability, and use of this data has given consumers the ability to shop regardless ofeither their location or the location of the retailer. The result is that the retailer must be everywhere: onthe consumer’s smartphone, at their home and office and at the traditional retail site. The economicdownturn, the destruction of much private wealth and disposable income, the restriction of creditavailability, and the pressure on household budgets have influenced consumer buying trends in termsof what consumers buy, how much they are willing to pay, and from where they will source theirpurchases. Consumers are not indifferent about how they make purchases. By contract, retailersmust find ways to meet consumer demand regardless of the sales channel, while also providing alevel of experience, customised product delivery and overall satisfaction to support continued sales.

This new retail landscape and consumer demands require retailers to re-think and revise their

strategies. This pattern is being repeated, with greater force and urgency, in the developing countriesand consumer behaviours and demands are converging across the world.



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The retail environment has gone from single channel (retail sites or online) to multi-channel or omni-channel. All retailers now have to consider a multi-channel approach to the market.


The following parameters are examined in the Customer Surveys:196. Order online for home delivery

197. Order online and pick up in store

198. Visit the store and order online via a kiosk

199. Visit the store and shop the retailer’s website via their mobile phones

200. Visit the store and shop on another retailer’s website

201. Visit the store, compare prices, and find the product at another physical store at a lowerprice

Consumers perceive few boundaries in their shopping behaviours and retailers need to find efficientand effective ways to manage the intricate logistics involved in serving consumers.

Whether retailers fully appreciate these changes in the retail distribution world is debatable and onemust analyse the technological developments and the implications for order fulfilment.

Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_I

202. Growth in e-commerce and its influence on the movement, storage and sale ofmerchandise from production through consumer

203. The impact of technology on the supply chain and consumer behaviour

204. The increasing pace of trend cycles and inventory management which affect all parts of theretail supply chain

205. The changing nature of retail in a global shopping environment

Stand-off Online Sites

Stand-off online sites are those used by retailers to liquidate or dump obsolete or remaindered stock.These are usually sites which are not identified as being connected with the retailer’s main brand andthereby they do not impact on or contaminate the retailer’s main stream offerings.

Stand-off sites can also include shops on EBay, Amazon, and other third party sites.

Retailers should incorporate sales on such sites with their existing inventory control and orderfulfilment.



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customers have to spend a lot to get a small gift, they will be insulted. At the same time, the companymust make sure it can recover the cost reasonably quickly.

The data generated by a loyalty scheme can also be used to improve business. Loyalty programmesput the spotlight on customer behaviour. They can show the best clients - and highlight the worst.

It can be more profitable to lose bad customers than to gain new ones. While the best customers may

be bringing in the lion's share of profit, the worst customers, the bargain-hunters that spend little andonly buy discounted goods, can actually cost money. The loyalty scheme can significantly improvethis scenario by rewarding customers and actively dissuading the worst.

Loyalty schemes can also be used to win back lapsed customers. These customers are much easierto win over than cold prospects. They know the company and the company knows them, their buyinghistory and where and how to reach them.

The data generated by a loyalty scheme can offer other valuable insights. It can highlight defectionpatterns and can also help the company improve your product range and stock selection. Knowingwhat the best customers frequently buy helps one choose which lines to stock - and which lines toexpand.

Social Media

Social media in a retail context is the action of Peer pressure to create sales.

As social media had evolved, so has how consumers make purchase decisions, particularly theyounger and more suggestible demographics.

The constant interconnectedness of social media sites, coupled on mobile devices have snowballedthe effects of peer opinion on purchases. “Crowd Sourcing”, meaning the tapping of the collectiveawareness of one’s peer group, or a section of the audience, is a growing trend.

Over 50% of this younger demographic is likely to explore brands via a social network, versus less

that 27% of older demographics.Over 50% of this younger demographic versus less that 20% of older demographics use mobiledevices to access user opinion before buying a product.

The growth of photo-sharing and similar websites that allows users to create and share products andideas go viral faster than before. Over 30% of online shoppers have made a purchase based on whatthey saw on such sites. Retailers are increasingly using these sites for marketing promotions.

Caution should however be exercised before large marketing investments are made in this area. Aswith all trendy and fashion driven activities, especially those concerning the younger demographics,the shelf life of these market efforts are limited and unpredictable. There are already signs of userfatigue with social media sites and user growth in these activities will become unsustainable in the

future. When that happens, the use of these promotional venues by retailers will become counter-productive.



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Part J : Pricing & Price Points


Pricing Study

This survey is about the Company’s brand(s) / product(s) / service(s) as described to respondentsindividually and as a basket of products.

The baseline for this survey is the 15 major Product Lines of the Company. A more comprehensive,with individual products and more product groups is available on request.

Customer Surveys of AGDMedia: as an Excel file: Part_J

1. How would you best describe your familiarity with the Company’s brand(s) / product(s) /service(s)?

a. I was not aware of the brand / product / serviceb. Only generally awarec. Have investigated or researched such productsd. Have demonstrated a product like thise. Have purchased or regularly use a product like this

2. About how many units of these products would you buy over the next year at each price pointlisted below (FMV Fair Market Value)?

a. FMV + 30%

b. FMV + 20%c. FMV + 10%d. FMV + 5%e. FMV = Estimated Fair Market Value = Recommended Retail Pricef. FMV - 5%g. FMV - 10%h. FMV - 20%i. FMV - 30%

3. About what price would you expect to pay for these products / services?

4. At what price would these products begin to look inexpensive or cheap?a. FMV + 30%

b. FMV + 20%c. FMV + 10%d. FMV + 5%e. Estimated FMVf. FMV - 5%g. FMV - 10%h. FMV - 20%i. FMV - 30%



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5. At what price would these products begin to look Good Value?a. FMV + 30%b. FMV + 20%c. FMV + 10%d. FMV + 5%e. Estimated FMVf. FMV - 5%g. FMV - 10%h. FMV - 20%i. FMV - 30%

6. At what price would these products begin to look too expensive?a. FMV + 30%b. FMV + 20%c. FMV + 10%d. FMV + 5%e. Estimated FMVf. FMV - 5%g. FMV - 10%h. FMV - 20%i. FMV - 30%

7. At what price would these products begin to look so expensive that you would never considerbuying them?

a. FMV + 30%b. FMV + 20%c. FMV + 10%d. FMV + 5%e. Estimated FMVf. FMV - 5%g. FMV - 10%h. FMV - 20%i. FMV - 30%

8. If you knew that the average price of similar brand / product / service was [Price], would youexpect to pay more or less to buy the described brand / product / service?

a. (20-30%) moreb. (5-10%) morec. No more, no lessd. (5-10%) lesse. (20-30%) less

9. If you are a current user of a similar brand / product / service, how long have you used the

brand / product / service?a. Under 1 monthb. 1-6 monthsc. 6 months to 1 yeard. 1-2 yearse. 3 years or moref. Do not currently use

10. How often could you find a use for the described brand / product / service?a. Once a week or more oftenb. 2-3 times a monthc. Once a monthd. Every 2-3 months

e. 2-3 times a yearf. Once a yearg. Would not use



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11. Based on the description, how interested would you be in buying the described brand /product / service; if priced within your budget?

a. Not at all interestedb. Not very interestedc. Not sured. Somewhat interestede. Very interested

12. What is it that you like most about the described brand / product / service?

13. What do you like least about the described brand / product / service?

14. Which of the following best describes your need for the described brand / product / service?a. I really need this product because nothing else can solve this problem.b. This is a minor improvement over what I currently use.c. Looks okay but is about the same as what I'm using now.d. My current product would serve me better.e. I am not at all interested in this product.

Pricing Strategies

Price Discounting

Many retailers reacted very quickly to the financial crisis by discounting prices across theboard without fully understanding the impact on demand or profitability. This has had a

dramatic effect in many retail sectors where recession-driven discounting has fundamentallyeroded both the value of the market, and the value proposition of the product sold.Consumers’ price expectations are lower and buying behaviour has changed.

Unsustainable Pricing

Whilst retailers know that current price levels are not sustainable, they also recognise thatdownturn discounting has re-set the price baseline for consumers, who are now unwilling topay more. This problem is compounded by inflation and rising input costs, causing retailers tobe squeezed from both sides.

Customers Segments

Retailers cannot identify their most profitable customers segments, and do not have the

information available to understand the impact of price changes on demand patterns.Recession-driven discounting has attracted and retained less profitable customers and thishas serious implications for the go-to-market strategy.



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Strategies

Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_J

15. Pricing strategy as a Boardroom decision

16. Align pricing to the overall business strategy, and the new market dynamics

17. Obtain accurate customer, competitor and market information

18. Drive consistent execution

19. Prepare for future challenges

Price Discounting

When demand fell in the wake of the financial crisis, retailers were driven by the need to maintainsales volumes and protect market share, therefore critical pricing decisions were taken in a hurry andmany retailers resorted to price reductions across their product and service portfolios.

55% of companies reduced prices across the board 65% of business leaders fear recession-driven discounting has hit profits 50% conducted price wars with competitors

Retailers were forced to make reactive pricing decisions without adequate information and manycompanies felt compelled to competing on price.

50% of retailers entered into price wars with competitors. 55% of retailers reduced prices which resulted in reduced margins.


20. When survival is the key driver, dropping price is an understandable response as volumesfall.

21. Discounting products or services which are price elastic result in an increase in salesvolumes.

22. Clear understanding of the trade-off between volumes and margin.

23. Impact of price changes on demand, and the impact on profitability.

24. Understanding of the customer base and the price elasticity of various customer segments.

25. Discounts are often driven not by an informed understanding of market dynamics but by salespersonnel and their incentives.

26. Store success is frequently measured by sales volume, rather than the profitability of therevenue.

27. Retailers needed to look at their pricing processes and controls to ensure their pricingstrategy was effectively implemented and monitored.

28. Performance metrics should be linked to profit as well as volumes; and appropriate controls,such as target and limit prices, should be embedded into company policies.



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Impact of Unsustainable Pricing

72% of retailers state that their current pricing is not sustainable

66% of retailers state that increasing prices from recession discount levels presents asignificant challenge

55% of retailers state that they are unable to pass on cost inflation to customers

Stagnant Prices

65% of retailers state that recession-driven discounting will not be sustainable in the longterm.

52% of retailers state that their company’s overall pricing strategy is not sustainable.

Retailers fear that price increases will face stiff market resistance, because customers used to adecade of low inflation, followed by heavy price-cutting, perceive discounts to be the norm. A majority

of retailers, 56%, state that customers who enjoyed discounts during recession will be unwilling to payhigher prices in better times.


29. Reactive, recession-driven discounting cannot now be sustainable.

30. Retailers that think customers will pay higher prices in better times are being highly optimistic.

31. Once customers have been educated on a new price point, it is exceptionally difficult to bringthat point back up.

32. Unemployment, government cuts, public sector redundancies, increases in taxation, and theeconomic climate will continue to have a bearing on changing buying habits.

33. Discounted prices are out of kilter with the fixed cost base of many retailers, and aligning thebusiness model and cost base with post-recessionary pricing will be formidable; thus retailershave to re-visit their cost structures and potentially make some radical decisions to ensurethey are fit to compete and succeed in the future.

34. To achieve the necessary cost re-structuring, retailers might have to divest part of theirbusiness, stop some unprofitable activities, or implement a different sourcing model.

35. What this requires is an in-depth review of markets, business models and pricing strategy.

36. Businesses need to decide exactly which market they are competing in. In retail the lowercost ‘value’ traders which have thrived by attracting increasingly price-conscious consumersare here to stay. Their business model is predicated on ensuring their costs are kept low, toallowing them to make sustainable margins.

37. Alternatively the low volume / premium price market retailers need to understand exactly whattheir customers value, build a strong brand, and have an exceptional store experience andoffering.

38. To exacerbate this price lag effect there is fear of first-mover disadvantage. Over 53% of firmsare delaying significant increases in the current climate, and 65% believe they risk losingcustomers and damaging sales volumes if their organisation is first to remove discounts.

39. The basis of the pricing issue is that retailers are locked into their current prices.



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Inflation

With consumer product prices stagnant, rising commodity and price inflation compounds theproblems of retailers. 53% of retailers are experiencing cost inflation, and forecasting furtherrising costs.

70% of retailers state that they will have problems in passing on rising input costs to their

customers; and 53% state categorically that they will be unable to do so.

Profit Margins

Price erosion coupled with cost inflation may be depressing retailer’s profits by 3-12%.

Profitability

40. Retailers are unlikely to recover their profit position in the next 12-36 months.

41. The restoration of pricing levels will take longer that the predictions generally make in theretail trade.

42. Low customer purchasing power is likely to ensure that prices remain depressed for at least24 months. After this time, retailers will not have the same price / customer / product mixwhich they enjoyed before the recession.

Customers Base

Lacking critical business intelligence, companies have been pricing their way throughrecession in the dark. 70% of retailers state that determining a coherent pricing strategy isvery difficult, and 60% state that it is extremely difficult to obtain accurate data on the impactof pricing on profitability. 50% believe that recession discounting policies have attracted lessprofitable customers

60% of retailers state that they do not have accurate data on the impact of pricing on salesperformance and profitability.

45% of retailers state that their company lacks the management tools and right information tosupport informed and effective pricing decisions.

55% of retailers state that identifying the most profitable customers presents is difficult asdoes identifying the most profitable products or services. Over half of retailers state that theydo not understand what customers require and what is the value proposition they seek.

Two thirds of retailers state that they do not have a consistent and coherent pricing strategy.


43. Developing and agreeing a consistent and coherent pricing strategy

44. Identifying what customers value

45. Understanding customer requirements

46. Identifying the most profitable products/services

47. Identifying the most profitable customers

48. Obtaining accurate data to enable visibility of the impact of pricing on profitability

49. Obtaining accurate data to enable visibility of the impact of pricing on sales performance

50. Identifying the most profitable customers, products and services is clearly a more challengingtask than most retailers acknowledge.



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51. To understand profitability by customer, retailers need visibility of the true ‘cost to serve’, andhow that may change over time.

52. Few retailers have a strong, granular understanding of their costs to serve by customer,product or channel. This limits their ability to accurately analyse the likely impact onprofitability of pricing and other changes.

53. Retailers have not come to terms with different sales volumes, changing customer behavioursand the impact of falling prices. These factors do not affect the ‘cost-to-serve’ equation in alinear fashion, and for this reason retailers are finding it difficult to understand which productofferings and which market segments are actually generating a profit.

Differential Value


54. Retailers know that in striving to maintain sales volumes, they have been operating in marketsthey might not have chosen to play in. 50% of retailers state that they believe that discountingpolicies have attracted and retained less profitable customers during the recession.

55. Retailers will produce a tiered pricing structure for different customer segments in the future.

56. Retailers will not be able to focus discounts on their most profitable or highest-spendingcustomers segments in the future.

57. Retailers face risks in shifting customer demographic focus.

58. Business plans, growth projections and investments are all made on the basis of an acceptedcustomer demographic, and buying habits.

59. Known customers demographic have known spending patterns and spending power.

60. Retailers who offered discount promotions during the recession need to be careful of how thismay have affected the customer base as they have educated their customers to a price pointand a level of value that they might not be able to maintain.

61. Retailers may not have the ability to spot such a shift, as internal reporting systems are oftentoo slow to recognise this until it is too late.

62. Many retailers do not know which customers and product lines drive profit.

63. Underlying retailer transactional systems fail to provide the information to accurately calculatecosts to serve.

64. It is often impossible to determine profitability by customer, product or channel.

65. Business intelligence is critical to provide the insight to identify where value is reallygenerated in an organisation.

66. Retailers need to invest in information gathering; however there is often reluctance toundertake this because heavy investment in ERP (Enterprising Planning) systems has oftenfailed to realise the anticipated benefits.

67. The omission of a business intelligence input has meant an inability to capitalise on the dataand business insight ERP can provide.

68. More efficient and accurate cost allocation provides an understanding of true profitability bycustomer, product and channel. Retailers can then focus on retaining and growing theaccounts of their most profitable customers and shedding unprofitable product lines.



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Future Strategies

Retailers understand the need to re-align pricing and are keen to introduce premium priced productsor variable pricing, however there is not a great deal of confidence in being able to execute suchstrategies.

Future Pricing Strategies

65% of retailers state that after a few years there will be a return to premium pricing. 60% of retailers state that discount price offerings will remain important. 70% of retailers state that variable pricing will also form a key part of the pricing mix. 55% of retailers state that they will introduce premium price products and services.


69. Implementing new contracting arrangements

70. Increasing joint business planning with key customers

71. Introducing lower cost, lower price products and services72. Introducing premium price products and services Introducing variable / pay-as-you-go pricing

73. Customer Surveys suggest that the plans of retailers to higher prices may not be successful.

74. Customer Surveys suggest that they are sceptical about premium priced products.

75. Supplier Surveys suggest that new ways of servicing retail customers, such as payment forperformance and on-demand delivery, may be difficult for retailers to deliver.

76. Senior Management time should be dedicated to setting the most profitable pricing strategy.

77. Pricing strategy should be a part of a full business strategy review.

78. Market dynamics and customer buying habits have changed and previously held assumptions

around market dynamics must be reviewed andthe business model re-evaluated.79. Setting and executing pricing policy will be a critical element of this to drive profitable growth.

80. Access to the right information

81. Retailers should have access to robust, accurate and timely data to inform pricing decisions.

82. Data should include a granular, or item by item, level of understanding of the profitability ofproducts and customers.

83. Effective business intelligence does not just drive action, it drives decisions and strategy.

84. Drive consistent execution

85. Be prepared to take on the significant challenge of changing the behaviour of salespersonnel.

86. Embed the right selling incentives, processes and controls that are required to ensure pricingstrategy is executed consistently, and sales personnel are delivering profit, not just volumes.

Preparation for Future Price Changes

87. Invest in understanding how pricing models in market sectors are likely to change in thefuture, and how to prepare to implement those changes successfully.



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Part K : Retailer Performance Analysis


Store Managers Survey

Store Personnel Surveys of AGDMedia: as an Excel file: Part_K

1. Confidence that the company will gain additional market share in the industry in the coming 2years?

a. Very confidentb. Confidentc. Somewhat confidentd. Not suree. Somewhat doubtful

f. Doubtful

2. What is the range of your outlets sales volume of company products last year?i. $250,000 - $499,000ii. $500,000 - $999,000iii. $1,000,000 - $2,999,000iv. $3,000,000 - $4,999,000v. $5,000,000 - $9,999,000vi. $10,000,000 - $19,999,000vii. $20,000,000 or more

3. How long has your outlet been established?

a. 1-5 yearsb. 5+ years

4. How much of your business volume is accounted for by this company’s own products?a. 24% or lessb. 25% - 49%c. 50% - 74%d. 75% or more

5. How much of your profit is derived from this company’s own products?a. 24% or lessb. 25% - 49%c. 50% - 74%

d. 75% or more

6. Which of the following company product lines do you fully support at this time?

7. Compared to the market leader, how do your products offer advantages in selling situations?a. Strong advantageb. Slight advantagec. About the samed. Slight disadvantagee. Strong disadvantage

8. Compared to the market leader, how do your products offer advantages in profitability?a. Strong advantage



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b. Slight advantagec. About the samed. Slight disadvantagee. Strong disadvantage

9. Compared to the market leader, how do your products offer advantages in service and

supplies business?a. Strong advantageb. Slight advantagec. About the samed. Slight disadvantagee. Strong disadvantage

10. Which product line do you see as offering a stronger competitive position to your company?

11. Overall, have actions taken by company senior sales and marketing management over thepast year had an impact one way or another on your business?

a. Very positive impactb. Positive impact

c. Somewhat positive impactd. Not suree. Somewhat negative impactf. Negative impactg. Very negative impact

12. Describe which actions had the greatest impact on your business, and why:

13. Which of the following best describes the influence you feel you have with company seniormanagement?

a. A lot of influenceb. Some influencec. Very little influence

d. No influence

14. On average, which of the following best describes company management's timeliness inresponse to your requests and inquiries?

a. Very timelyb. Somewhat timelyc. Mixedd. Somewhat slowe. Very slow

15. How do you rate your company’s operational abilities?

16. Which of the following administrative areas would you say presents the greatest opportunity

for improvement?a. Order processingb. Shippingc. Inventory trackingd. Billing and credits

17. How do you rate your company’s marketing and sales programs?



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18. Compared with the investment support level in your company business this year, what are theinvestment support plans for next year?

a. Greatly increase supportb. Increase supportc. Maintain same level of support

d. Decrease supporte. Greatly decrease support

19. Why did you answered the way you did about your investment support plans for yourcompany business for next year?

20. What suggestions do you have for company senior management which would help youimprove the success of your company business next year?

Customer Satisfaction Survey

Customer Surveys of AGDMedia: as an Excel file: Part_K

21. Overall, I am very satisfied with the way the retailer performed (is performing):

a. Strongly Disagree

b. Somewhat Disagree

c. Neither Agree nor Disagree

d. Somewhat Agree

e. Strongly Agree

22. Sales Personnel are well trained.

23. Sales Personnel are well supervised.

24. Sales Personnel adhere to professional standards of conduct.

25. Sales Personnel act in my best interest.

26. Overall, I am satisfied with the Sales Personnel


b. Somewhat

c. Disagree

d. Neither Agree nor Disagree

e. Somewhat Agree

f. Strongly Agree

27. The store senior staff are knowledgeable and professional.

28. The store senior staff are making a positive contribution to customer service.

29. The store senior staff responded to my inquiries in a timely manner.

30. Overall, I am very satisfied with the store senior staff.

31. Compared to how you felt about the retailer before this purchase, what is the likelihood of

completing another purchase with the retailer?a. Better, based on performance



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b. About the same

c. Worse, based on performance

32. Considering the overall value, you paid for the product, was it…

a. An exceptional value, worth more than you paid for it

b. A good value, worth about what you paid for itc. A poor value, worth less than you paid for it

Inventory Control

Product life cycles are shrinking, which adds pressure to get final products into consumers' handsmuch faster than before.

With more aggressive competition, keeping inventory lean while still meeting fluctuating demandpatterns becomes critical, and underlines the need for technological solutions to manage inventoryand orders.

Inventory Balancing Act

Retailers must balance how much inventory to stock in-store versus distribution centres andwarehouses. This calculation bears consideration of the required coordination between all possiblechannels such as:

Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_K

33. Buy online, pick up in local store

34. Buy anywhere, ship from store to home

35. Buy online, transfer to store for pick-up

36. Research online, reserve in store

37. Buy online, return to store

Just-in-time inventory

Just-in-time inventory management allows for the reduction of stock and storage costs, but mayincrease transportation costs and potentially delivery times. The Speed versus Cost equation is wellknown to all retailers and these considerations will particularly impact retailers with seasonal, shortshelf life and trend based products.

Microwave merchandising

The fast-fashion global retailers from Sweden, Spain, the UK and other countries, have dominated theclothing industry in recent years, by attracting considerable consumer bases, expanding revenuesand expanding aggressively in prime markets in both developed and developing countries. Thesuccess of retailers like Zara, H&M, and others is the quick turnaround times for product ranges andstore displays. This stimulates interest and demand.

These retailers are changing and defining buyer expectations. Consumers are now seeking newproduct ranges in 6 to 9 weeks as opposed to 6 to 9 months. Many of these retailers manage theentire production and distribution process in-house; this reduces risk and ensures an efficient supplychain.

Those retailers without upstream integration processes must respond with a strategy of smaller ordersdistributed amongst a greater pool of suppliers. This however tend to lead to increased unit costs andtherefore the long-term competitiveness of such a strategy is uncertain.



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Speed and Cost

Clearly the cost of sea transport is substantially less than air freight. In general Sea transportation isused by over 60% of long-distance shippers whilst Air is user by 30% of long-distance shippers.Retailers are having to evaluate the trade-off between increased velocity and flexibility, andtransportation costs, in the light of both inventory requirements and product-to-market times.


38. Factors for Just-in-time management39. Supply chain agility40. Supply chains visibility and flexibility41. Inventory certainty42. Transit visibility and flexibility43. Distribution centre management44. Store stock holdings45. Back order management

46. Inventory optimisation47. Supply chain optimisation48. Customer service optimisation49. Speed to market50. Integration of orders into the stock processing schedule

51. In-house manufacturing52. Own private label products53. Product availability54. Supplier mark-ups

Operational Performance Analysis

A survey of Consumers and Retail Customers to analyze overall Retailer Performance Issues:


55. Attitudes Towards Discount / Store Own-Brand Products56. Availability -v- Price Question57. Perceptions of Currently Global Brands58. Perceptions of Currently Store Brands59. Price Sensitivity

60. Product Awareness61. Product Awareness of Store Brands62. Purchasing Criteria: Current63. Purchasing Criteria: Current of Store Brands64. Purchasing Criteria: Future Trends65. Purchasing Criteria: Future Trends of Store Brands66. Quality -v- Price Question67. Reaction to Advertising & Sales Promotion68. Reaction to Advertising & Sales Promotion of Store Brands69. Reaction to P.O.S. & Merchandising70. Satisfaction with Existing Branded Outlets71. Satisfaction with Existing Store Brand Products72. Satisfaction with Existing Products

73. Satisfaction with Existing Retailers74. Satisfaction with Store Brand Product Design75. Satisfaction with Store Brand Product Packaging



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76. Satisfaction with Store Brand Product Packaging Design77. Satisfaction with Store Brand Product Quality78. Satisfaction with Product Availability79. Satisfaction with Product Design80. Satisfaction with Product Packaging81. Satisfaction with Product Packaging Design

82. Satisfaction with Product Quality83. Satisfaction with Retailers Stock Levels84. Willingness to Purchase Foreign Brands85. Willingness to Purchase Store Brands86. Advertising Posture: Store/Outlet Level87. Advertising Posture: Company Level88. Branded Product Information: Store/Outlet Level89. Branded Product Information: Branded Products90. Branded Product Information: Company Level91. Branded Product Information: Counter Staff92. Branded Product Information: Dedicated Products Staff93. Contract Documentation: Store/Outlet Level94. Contract Documentation: Company Level

95. Counter Staff Customer Handling: Store/Outlet Level96. Counter Staff Customer Handling: Branded Products97. Counter Staff Customer Handling: Company Level98. Counter Staff Customer Handling: Counter Staff99. Counter Staff Customer Handling: Dedicated Products Staff100. Credibility: Store/Outlet Level101. Credibility: Branded Products102. Credibility: Company Advertising103. Credibility: Company Level104. Credibility: Company Offers & Promotions105. Credibility: Counter Staff106. Credibility: Dedicated Products Staff107. Customer Awareness of Product: Store/Outlet Level

108. Customer Awareness of Product: Company Level109. Customer Complaint Handling: Store/Outlet Level110. Customer Complaint Handling: Branded Products111. Customer Complaint Handling: Company Level112. Customer Complaint Handling: Counter Staff113. Customer Complaint Handling: Dedicated Products Staff114. Customer Comprehension of Product: Store/Outlet Level115. Customer Comprehension of Product: Company Level116. Customer Confidence at Store/Outlet Level117. Customer Confidence at Company Level118. Customer Confidence in Branded Products119. Customer Confidence in Company Advertising120. Customer Confidence in Company Offers & Promotions

121. Customer Confidence in Counter Staff122. Customer Confidence in Dedicated Products Staff123. Customer Confidence in Product: Store/Outlet Level124. Customer Confidence in Product: Company Level125. Customer Handling: Store/Outlet Level126. Customer Handling: Branded Products127. Customer Handling: Company Level128. Customer Handling: Counter Staff129. Customer Handling: Dedicated Products Staff130. Customer Problem Solving: Store/Outlet Level131. Customer Problem Solving: Branded Products132. Customer Problem Solving: Company Level133. Customer Problem Solving: Counter Staff

134. Customer Problem Solving: Dedicated Products Staff135. Customer Service: Store/Outlet Level



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136. Customer Service: Branded Products137. Customer Service: Company Level138. Customer Service: Counter Staff139. Customer Service: Dedicated Products Staff140. Customer Service: Offers & Promotions141. Promotional Activity: Store/Outlet Level

142. Promotional Activity: Company Level143. Reputation at Store/Outlet Level144. Reputation at Company Level145. Reputation of Branded Products146. Reputation of Counter Staff147. Reputation of Dedicated Products Staff148. Staff Awareness of Product: Branded Products149. Staff Awareness of Product: Counter Staff150. Staff Awareness of Product: Dedicated Products Staff151. Staff Comprehension of Product: Branded Products152. Staff Comprehension of Product: Counter Staff153. Staff Comprehension of Product: Dedicated Products Staff154. Staff Confidence in Product: Branded Products

155. Staff Confidence in Product: Counter Staff156. Staff Confidence in Product: Dedicated Products Staff157. Staff Efficiency: Store/Outlet Level158. Staff Efficiency: Branded Products159. Staff Efficiency: Company Level160. Staff Efficiency: Counter Staff161. Staff Efficiency: Dedicated Products Staff162. Staff Efficiency: Offers & Promotions163. Staff Efficiency: Problem Solving164. Staff Integrity: Advertising & Promotions165. Staff Integrity: Store/Outlet Level166. Staff Integrity: Branded Products167. Staff Integrity: Company Level

168. Staff Integrity: Counter Staff169. Staff Integrity: Dedicated Products Staff170. Staff Integrity: Offers & Promotions171. Staff Performance: Store/Outlet Level172. Staff Performance: Branded Products173. Staff Performance: Company Level174. Staff Performance: Counter Staff175. Staff Performance: Dedicated Products Staff176. Staff Performance: Offers & Promotions177. Staff Performance: Overall Customer Handling178. Truth & Honesty: Advertising & Promotions179. Truth & Honesty: Store/Outlet Level180. Truth & Honesty: Branded Products

181. Truth & Honesty: Company Level182. Truth & Honesty: Counter Staff183. Truth & Honesty: Dedicated Products Staff184. Truth & Honesty: Offers & Promotions185. Verbal Contact: Store/Outlet Level186. Verbal Contact: Branded Products187. Verbal Contact: Company Level188. Verbal Contact: Counter Staff189. Verbal Contact: Dedicated Products Staff190. Written / Internet / Telephone Communications: Store/Outlet Level191. Written / Internet / Telephone Communications: Branded Products192. Written / Internet / Telephone Communications: Company Level193. Written / Internet / Telephone Communications: Counter Staff

194. Written / Internet / Telephone Communications: Dedicated Products Staff195. Written / Internet / Telephone Communications: Promotions & Offers



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Issues covered with Trade Wholesalers, Brand Managers, Trade Buyers, Retailers, In-store RetailNegotiators include:


196. Retail Management Performance: Person/s Approving / Authorising Order/s197. Retail Management: Person/s Deciding What Products / Brands are to be Stocked198. Retail Management Performance: Person/s Evaluating Products & Brands Available199. Retail Management Performance: Person/s Initiating Decision to Increase Amounts

Purchased / Total Inventory200. Retail Management Performance: Person/s Initiating Decision to Introduce New

Products or Brands201. Retail Management Performance: Person/s Initiating Decision to Re-Order202. Retail Management Performance: Person/s Monitoring Results of Purchases & Sales203. Retail Management Performance: Person/s Negotiating Terms with Suppliers204. Retail Management: Person/s Preparing Orders / Specifications for Purchases205. Retail Management: Person/s Surveying Suppliers & Seeking Quotations

206. Wholesaler Management Performance: Person/s Approving / Authorising Order/s207. Wholesaler Management Performance: Person/s Deciding What Products / Brandsare to be Stocked

208. Wholesaler Management: Person/s Evaluating Products & Brands Available209. Wholesaler Management Performance: Person/s Initiating Decision to Increase

Amounts Purchased / Total Inventory210. Wholesaler Management Performance: Person/s Initiating Decision to Introduce New

Products Or Brands211. Wholesaler Management Performance: Person/s Initiating Decision to Re-Order212. Wholesaler Management: Person/s Monitoring Results of Purchases & Sales213. Wholesaler Management Performance: Person/s Negotiating Terms with Suppliers214. Wholesaler Management Performance: Person/s Preparing Orders / Specifications

for Purchases

215. Wholesaler Management: Person/s Surveying Suppliers & Seeking Quotations

216. Retail Buyers: Attitudes Towards Discount / Own-Brand Products217. Retail Buyers: Availability -v- Price Question218. Retail Buyers: Buying Patterns219. Retail Buyers: Current Purchasing Criteria220. Retail Buyers: Frequency of Deliveries221. Retail Buyers: Frequency of Purchase/s222. Retail Buyers: Method of Payment for Supplies223. Retail Buyers: Ordering Procedures224. Retail Buyers: Product Reject/Return Rate by Customers225. Retail Buyers: Product Reject/Returns Rate at Goods Inwards226. Retail Buyers: Product Reject/spoilage Rate Whilst Held in Stock

227. Retail Buyers: Purchasing Criteria - Future Trends228. Retail Buyers: Quality -v- Price Question229. Retail Buyers: Reactions to Advertising & Sales Promotion230. Retail Buyers: Satisfaction with After-Sales Services Received From Suppliers231. Retail Buyers: Satisfaction with Availability of Advertising Support & POS /

Promotional Materials232. Retail Buyers: Satisfaction with Availability of Supplies233. Retail Buyers: Satisfaction with Deliveries / Frequency & Up-Take234. Retail Buyers: Satisfaction with Existing Methods of Supply & Distribution235. Retail Buyers: Satisfaction with Existing Products236. Retail Buyers: Satisfaction with Existing Suppliers & Sources237. Retail Buyers: Satisfaction with Ordering Procedures238. Retail Buyers: Satisfaction with Quality & Specifications of Supplies

239. Retail Buyers: Satisfaction with Suppliers' Stock Levels240. Retail Buyers: Satisfaction with Promotional & Advertising Assistance Received



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241. Retail Buyers: Satisfaction with P.O.S. & Marketing Materials242. Retail Buyers: Satisfaction with Terms of Trading243. Retail Buyers: Source of Supply244. Retail Buyers: Supplier Loyalty

245. Wholesale Buyers: Attitudes Towards Discount / Unbranded / Own-Brand Products

246. Wholesale Buyers: Availability -v- Price Question247. Wholesale Buyers: Buying Patterns248. Wholesale Buyers: Current Purchasing Criteria249. Wholesale Buyers: Problems with Products250. Wholesale Buyers: Sales Promotional Activities Mix251. Wholesale Buyers: Sales Promotional Activities to their Retailers252. Wholesale Buyers: Delivery / Service Area253. Wholesale Buyers: Discounts Offered to Retailers254. Wholesale Buyers: Experiences of Product Reject Claims255. Wholesale Buyers: Frequency of Deliveries to Retailers256. Wholesale Buyers: Frequency of Purchase/s257. Wholesale Buyers: Inventory Financing258. Wholesale Buyers: Mode of Ordering by Retailers

259. Wholesale Buyers: Mode of Payment by Retailers260. Wholesale Buyers: Number of Competitive Producers Represented261. Wholesale Buyers: Producers Sales Promotion Most Influencing Dealers262. Wholesale Buyers: Purchasing Criteria - Future Trends263. Wholesale Buyers: Quality -v- Price Question264. Wholesale Buyers: Retailers Attitude Towards Price -v- Availability265. Wholesale Buyers: Sales Call Frequency Per Regular Customer ( Average - Delivery

& Servicing )266. Wholesale Buyers: Satisfaction with After-Sales Services Received From Suppliers267. Wholesale Buyers: Satisfaction with Availability of Advertising Support & POS /

Promotional Materials268. Wholesale Buyers: Satisfaction with Availability of Supplies269. Wholesale Buyers: Satisfaction with Documentation / Instructions

270. Wholesale Buyers: Satisfaction with Existing Methods of Supply & Distribution271. Wholesale Buyers: Satisfaction with Existing Products & Product Ranges272. Wholesale Buyers: Satisfaction with Existing Suppliers & Sources273. Wholesale Buyers: Satisfaction with Own Stock Levels274. Wholesale Buyers: Satisfaction with Producers Ability to Fulfil Orders On Time275. Wholesale Buyers: Satisfaction with Producers Credit & Other Financial Details276. Wholesale Buyers: Satisfaction with Producers Delivery Frequency & Up-Take277. Wholesale Buyers: Satisfaction with Producers Ordering Procedures & Formalities278. Wholesale Buyers: Satisfaction with Producers Stock Levels279. Wholesale Buyers: Satisfaction with Producers Terms of Trading280. Wholesale Buyers: Satisfaction with Quality & Specifications of Supplies281. Wholesale Buyers: Satisfaction with Quality of Supplies Received282. Wholesale Buyers: Satisfaction with Promotional & Advertising Assistance Received

283. Wholesale Buyers: Supplier Loyalty



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Retail Performance Intelligence

Retail performance intelligence is vital to key business decision making, whether in one’s owncompany or in order to effectively compete with other companies.

Retailers need to monitor their performance in real terms, and thereby have immediate control of theirdecision making. The ability to interrogate business data and site performance in real time allowsmanagers to make timely decisions.


284. Site performance comparisons and ranking

285. Performance comparisons according to date /week / hour / day of the week / period

286. Site or data comparisons for key performance indicators e.g. sales conversion

287. Contextual information relevant for evaluating performance e.g. weather and events

288. Data should be predefined, scheduled and distributed according to the requirementsof the managers concerned.

Business Performance Comparisons

Managers can only analyse the situation through accurate data on what is going on not only in one’sown stores, and shopping areas, but also compare it with one’s competitors by size, type andlocation. Correlations and hidden patterns over time help one identify the problems and opportunities.


289. Retail space performance290. Optimum shopper to staff ratio291. Customer service292. Cost controls293. Conversion rates294. Competitive analyses295. Historic and forecast performance data

Shopper Numbers and Quality

Retailers are aware that attracting the right demographic will lead to the higher conversion rates andaverage transaction values. The use of live data around consumers’ behaviour and preferences,coupled with synchronised advertising and marketing activity will draw quality traffic. Where and howshoppers buy reveal the effectiveness of promotions in increasing traffic and sales.


296. Demographic targeting by location297. Consumer Drivers and Purchasing Behaviours by location298. Promotional targeting by demographic and location299. Monitoring traffic, conversion rates and sales results



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Optimised Store Performance

Retailers look for empirical evidence which demonstrates which products and promotional activitieswill generate healthy traffic at each retail site; and that this will translate into profitable sales. Essentialmetrics include:

Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_K300. Average spend per visitor

301. Breakdown of sales across different retail product groups

302. Sales performance of adjacent (owned and competitive) retail units

303. Performance evaluations of each site

304. Sales density across sites in the portfolio

305. Stores that are over-trading and can be moved to larger units with lower costs due toeconomies of scale

306. Stores which are under-trading and require action can be taken to mitigate thesituation

Site Potential & Floor Mapping

Retailers have to ensure every part of their retail space generates the maximum return on investment.Footfall numbers are simply not enough and one needs to encourage a steady flow of traffic aroundevery area of the store. Floor space mapping analyses the site by discrete areas enabling one toidentify hot and cold spots; and thereby understanding those areas that are under and over-performing. This allows the retailer to take appropriate action to optimise the situation.

Comparative Site Performances

Retailers have to compare individual site performance across their entire store portfolio by a range ofcriteria including geographic region, size, type and store age to identify under and over-performingstores. As one of the key factors informing the portfolio decision is whether to buy, sell or refurbishparticular stores, this objective data will prove useful to managers working to increase the value of thewhole portfolio.

Physical Operations at individual sites

Armed with detailed information on footfall traffic volumes, day by day, and hour by hour, theindividual store’s HVAC and lighting systems can be programmed to more closely mirror store use,

cutting energy costs considerably. Store usage patterns can also be factored in when drawing uprosters for cleaning and security staff, thereby creating additional savings in personnel costs.



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Technology Usage

The use of communications technology by consumers, and the evolution of diverse retail channelsrequire that retailers be able to sell and deliver wherever the customer is located. Consumers expecta wider variety of products from a single source and better product value without any loss in productor service quality. To enable retailers to adequately compete they need to capture and utilise the

necessary business data:

Expert and Industry Appraisal of AGDMedia: as an Excel Part_K

307. Technological investment308. Point of sale terminal data gathering309. Online sales data gathering310. Supply chain data311. Site level of inventory312. Distribution centre inventory313. Social media integration314. Search engine integration315. Targeted web page advertising316. Web identification and activity tracking

317. Consumer targeting318. Target demographic surveillance319. Online advertising calibration

320. Sales personnel support systems321. Supply chain visibility322. Goods-in-transit323. Delivery windows324. Stock requirement predictions

325. Real time availability of stock information to sales personnel326. Kiosks where customers can check inventory327. Kiosks where customers can purchase and have them directly shipped to their home

328. Retail channels:a. in storeb. catalogue/call centrec. traditional webd. mobile webe. social mediaf. digital signageg. kiosks

329. Retail supply chain resources:a. WMS (Warehouse management software)b. OMS (Order management software)c. DOM (Distributed order management)d. POS (Point of sale)e. ERP-CRM (Enterprise resource planning, client relationship management)f. RFID (radio frequency ID)g. Social media data

330. Retailer systems:a. Retailers POS and e-commerce data managementb. Social and mobile initiativesc. Real-time visibility across the entire supply chaind. Retail site technology, handheld tablets and kiosks



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Technology Spending & Customer Service

The retail scene is constantly changing due to continual mergers, new store entry, foreign brands,multi-channel selling, e-commerce, and so forth. Intense competition among retailers has increasedthe awareness of the new and emerging retail technologies.

Technology budgets have grown year-on-year for over two decades and these investments have notonly reduced a great deal of human interaction, but has helped to create positive customer serviceexperiences.

By using efficient and original technologies retailers have more dependable in-store customer data tocreate better- designed performance measures, customer research, and analytics. These technologysolutions help the retailer focus completely on their customers.

e-Commerce and Cross-channel Sales

The percentage of sales made at traditional retail sites will fall form 93% in 2012 to less that 65% in2019; however retailers are forecasting an increase in store portfolios and the maintenance of presentstore sizes.

Of course retailers have often miscalculated the future and history is littered with failed retail brands.Thus either some retailers are unrealistic about the impact of e-commerce on their business and theneed to decrease their store numbers and space in the future; or the function of these stores willchange from simply a point-in-sale to something more complex and integrated into the multi-channelsupply chain.

Development of Cross-channel Sales

The growth in cross-channel sales will average 12-15% per year over the next few years,outperforming both e-commerce growth and retail sales growth. This means that multi-channelcoordination is becoming more critical as part of retailers’ operational strategy.

Audit of Retail Operation by Expert Appraisal:

Expert and Industry Appraisal of AGDMedia: as an Excel File: Part_K

331. Omni-channel selling plans332. Merging with new shopping channels333. Online competition strategy334. Store footprint strategy335. Total inventory levels

336. Dedicated pick-up space in-store

337. Front, back, or curb-side collection

338. Staffing capacity339. Store layout340. Orders processing and fulfilment

341. Retailer on-shelf stocks342. Short turnaround re-stocking343. Cost-effective order fulfilment344. Store footprint and space efficiency

345. Order management system346. Positioning of source inventory

347. Warehouse picking348. Pack and ship tactics349. Supplier shipping directly to store



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350. Inventory pooling351. Safety stock levels352. Stock space

353. Picking tactics354. Labour intensity & costs

355. Order fulfilment strategies356. Order fulfilment technologies357. Optimisation of space358. Handling Equipment Capital Costs

359. Picking carts systems360. Batch picking361. Picking technologies362. Picking accuracy

363. “Put” systems 364. Cart batching365. Racking, shelving & carousels

366. Automated storage and retrieval systems (AS/RS or sorters)367. Sorter units

368. “Goods to operator” technologies 369. Operator work station370. Horizontal or vertical carousels371. Automated storage and retrieval machines (mini-load AS/RS)372. Automated guided vehicles

Showrooming

Future retail strategies include the use of retail stores more as showrooms or giant catalogues forconsumers to feel and touch the product.

Traditional retailers were compromised when Amazon released a price-checking app that allowedusers to scan barcodes in rival stores and check for cheaper prices online. What this means is thatany retailer providing a ‘showroom’ may be doing so for the benefit of a third party online merchant.

Retailers have made enormous long-term capital investments creating distribution centres whichmove crates and pallets to stores. Now however they must develop distribution networks capable ofgetting single items to the customer’s door. Amazon is the leader in this field, using site selection,automation and tax strategy to deliver pricing and delivery service that is challenging the traditionalretail traders. In the futuristic distribution centres of its subsidiary, Zappos, order picking is handled byrobots. The robots enable Amazon to turn off the lights and forget about air conditioning in a largeportion of its enabled distribution centres. It allows them to employ a fraction of workers in what was atraditionally labour-intensive operation.

Amazon acquired the maker of these robots, Kiva Systems, and will likely automate a great deal moreof its operations in the future. In the meantime, Amazon continues to build distribution centres fasterthan anyone else.

While most distribution centres do not have the robotic labour, they are still a blend of high technologyand a lot of manual labour. The 2,000 workers in Amazon’s 1-million-square-foot Chattanooga,Tennessee facility are connected by about seven miles of fibre and 700 internet access points.

Amazon invested in a mezzanine level for this facility; and that will nearly double the floor space. Withso much investment and such specific facility requirements it is clear why Amazon has gone the build-to-suit route. Between its two existing facilities in Tennessee, Amazon has spent over $140 million.

Due to the material handling needs, each centre processes a different type of goods. TheChattanooga centre is set up to handle mostly smaller items, while the Cleveland, Tennessee site

handles large items like televisions. Amazon is adding two more sites in Tennessee for an additionalinvestment of $150 million.



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Audit of Retail Operation by Expert Appraisal:


373. ‘Showrooming’ strategies

374. Unique products or “bundles” that are not for sale elsewhere 375. Co-operation with manufacturers to release products earlier than competitors376. Price matching with online offerings377. Build relationships with consumers378. Boosting consumer loyalty379. Encouraging product recommendations380. Special deals for loyal consumers381. Providing information382. Providing exceptional service383. Creating interactive environments for consumers

Of course it is not only Amazon investing in advanced automated materials handling and distribution

centres, retailers from all sectors have little alternative but to invest in such facilities in order tocompete in terms of both operating margins and customer service. These distribution centres alsodemonstrate the trend towards larger facilities which allow economies of scale and operational timeefficiencies.

Audit of Retailer Factors by Expert Appraisal:


384. Awareness in trends in technology385. Awareness of consumer behaviour patterns

386. Operational speed improvements

387. Faster trends cycles388. Faster merchandise transits

389. Handling volatility in commodity prices390. Handling volatility in transportation costs391. Handling volatility in input pricing392. Handling volatility in swings in consumer behaviours

393. Handling current inventory levels394. Handling upstream operations395. Handling downstream operations

396. Handling consumer price sensitivity

397. Handling consumer demand and trend cycles398. Handling consumer buying patterns

399. Expanding product offerings400. Expanding social media initiatives401. Expanding delivery flexibility

402. Management of logistics & movement of goods403. Management of suppliers and producers404. Management of wholesalers405. Management of own distribution centres406. Management of store stocks

407. Strategy for changing labour requirements408. Strategy for changing raw material usage



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Part L : Strategies


Retailers must fully analyse the strategy of retailing from each perspective of a strategic methodologywhich has to plan for and adapt to a complex, changing environment. Both opportunities and threatsmust be considered. By engaging in strategic retail management, the retailer is encouraged to studycompetitors, suppliers, economic factors, consumer changes, marketplace trends, legal restrictions,and other elements. A retailer prospers if its competitive strengths match the opportunities in theenvironment, weaknesses are eliminated or minimised, and plans look to the future (as well as thepast).

Retailer strategy consists of many factors, including:

Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_L1. Building relationships2. Ownership and store mix3. E-commerce, non-store and non-traditional retailing formats4. Consumer behaviour and information gathering5. Store locations6. Managing the business7. Planning, handling, and pricing merchandise8. Communicating with the customer9. Integrating, analysing, and improving strategic planning10. Trans-international retailing11. Franchising

The point of sale is becoming increasingly important for two reasons. Firstly because the consumermedia environment is becoming more fragmented making it more difficult to reach shoppers withtraditional tactics; and secondly, because retailers are getting stronger, smarter and better atmarketing.

The power that used to rest almost entirely with the national brand marketers who used advertising todirect people to the stores to demand their products is shifting to the retailer. The advertising industryhas taken its eye off the ball by not understanding the importance of distribution-channel managementand thereby the brand owners have suffered.

In turn, there is no doubt that the adage ‘change or die’ will define the retailing sectors in theimmediate future. Whether individual retailer die will depend on if they change.

The change is often simply the ability to provide a multichannel sales environment to one’scustomers.

It is not that physical retail sites are dead, physical locations allow shoppers to touch and feelproducts. In certain retail sectors this is essential. Retail outlets have real people who can provide thekind of personal advice and service that’s essential to certain product sales. These attributes can beharnessed and used to provide consumers with a real shopping experience.

For retailers to address the challenges of the future they need to embrace their customers’preferences and expectations.



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Expertise and Specialisation

Online retailers like Amazon have the consumer image of offering all things to all people, therebybeing a jack of all trades and master of none. This is especially true where advice and presentationare a big part of the purchase experience.

Multichannel retailers can exploit this weakness on the part of pure online traders by makingthemselves category experts offering service and advice, and positioning themselves as specialists.By offering the best of their product sector, retailers can appear to be on the side of the customer bygiving sage advice and help. Retailers should be on the side of the customer and become theiradvisors.

By providing expert publications, reviews and recommendations, being associated with trade expertswho can help customers, developing specialised supply of products, generating an environment whichengages customers and supplies expertise to help customers make informed choices, a retailer canbecome differentiated. Stores can offer trained sales staff with expertise in their category. Retailerscan use video chat lines to provide customers with remote experts to answer questions on the spot.

Data MiningThe enormous availability of data allows retailers not only to identifying segments, but also to targetmicro-segments based on patterns in individual consumers’ research and purchase behaviour. Thiskind of analysis enables a stronger relationship with customers as the data specificity allows retailersto cater to specific needs and wants.

This approach can help develop offers tailored to the individual and target underserved consumersegments, with distinct marketing and product offerings. Some retailers have developed micro-sitestargeted at specific consumer segments.

Retail Store Evolution

As consumers use greater digital technology this should be used by retailers and become moreintegrated with the shopping experience. Store retailers should re-invent the role played by theirstores by embracing the emerging innovations which are redefining what product knowledge andconvenience means to customers. This is more than just allowing customers to use physical stores topick up or return goods bought online; it is more about using the store as a service hub. Bydeveloping the store facilities and space allocation across channels, and by altering the character andatmosphere of a store, retailers could lead customers attitudes and behaviour patterns; and not juststruggle to react to and keep up with the customer.

Bespoke Service

While technology has allowed for more sophisticated targeting, it is important to remember thatconsumers shop at stores for the Store Experience and contact with a real person.

Retailers offering personal shoppers across multiple channels can bring a valuable store experiencethat is supported by just-in-time data. Some retailers enhance the bespoke service with a phone appthat identifies when customers enter the store and prompts staff to engage with the customer armedwith that customer’s purchase history and preferences.

An important part of making personal contact with customers is by creating familiar neighbourhoodconnections. Various mobile apps offer local businesses innovative ways to use product offers thatencourage shoppers into their stores, and then keep them coming back with further offers, events andpromotions.



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Collaboration

Retailers need to find new partners and collaborators to get the capabilities, expertise, and access tocustomer bases that they cannot easily develop on their own. Cross-retailer loyalty schemes helpcreate the same multi-category loyalty experience that Amazon has created through their Primeoffer. Retailers can look to promote products and services across the on- and offline worlds through

personal one-to-one marketing delivering email and text offers to mobile phones. This can betriggered when the consumer is in the neighbourhood of one of the retailer’s stores.

Uniqueness

Brand images are becoming depreciated and consumers perceive even the prime brands as beingcommonplace. This has led to a reduction in the price premiums previous expected by brand retailers.

Retailers need to develop unique products, with fresh brands and innovative presentation andpromotion. Exclusive lines of merchandise, private label offerings, and ‘celebrity endorsed collections’help to differentiate one retailer from another.

Market Leadership

Store retailers can move into new, untapped markets where competitors do not have a foothold or donot have an adequate product offering. Highly fragmented markets attract online suppliers, and herethere are opportunities to bring a lot of buyers and sellers together. The developing Asian and othermarkets are extremely attractive in this respect.

Multichannel retailers need to perfect the digital shopping experience; customers increasingly demanda trouble-free and effortless interaction with retailers. The ability of retailers to turn physical stores intoprofit centres will determine if they are able to prosper or become another victim of the irresistibledigital revolution.

Audit of Retailer Strategy by Expert Appraisal:

Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_L

12. Expertise and Specialisation13. Data Mining14. Retail store evolution15. Bespoke service16. Collaboration17. Uniqueness18. Market leadership



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Part L.1 : Corporate Retail Strategies

Many retailers that expanded rapidly before the downturn did not have a worst case scenario marketstrategy; and they are now suffering in the absence of a cogent business plan to carry them through

the bad times. Difficult trading conditions mean that it is a challenge to make any headway in anaggressive and uncertain market place.

The challenge is to develop a strategy to fit the changing demands of the market.

Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_L.1

Key target demographics

1. Key customers bases served2. Key competitors3. Drivers of sales and margins4. Retail offering5. Multi-channel offerings6. Cost base

7. Business plan effectiveness8. Pricing strategy9. Product buying channels

Challenging economic conditions are impacting on the retail sector across the world and underlyingproblems need to be addressed.

Not only does rising inflation diminish discretionary spend, but spending patterns and product demandis also evolving and retailers may not have the necessary resources to survive these changingcircumstances.

Retailers need to critically analyse their internal organisation to confirm that they have the basics:


10. a clear strategy;11. experienced retail business specialists in charge;12. understand the key drivers for the business;13. the right retail offering;14. tested business model;15. plans for future development.

Operating Strategies

Retailers that expanded when easy capital was available and the economy was growing are now

struggling because they neglected to develop a strategic business plan incorporating differenteconomic scenarios. Even those business managers who did plan for uncertainty may not haveincorporated all the variables and scenarios which have been experienced recently. Few managerscould have foreseen such a dramatic change in consumer purchasing behaviour, economic instabilityand challenging market conditions.

Whilst there exists economic uncertain in many markets, and despite the fact that many businesseshave taken steps to ensure their survival, there is still ambiguity in profitability forecasts.

Understanding the underlying operational and market factors allow the development of a competitiveand sustainable strategy. Business plans and projections, investments decisions, and futurestrategies are all made on the basis of a known customer demographic and fully understoodcustomers purchasing behaviours. When customer demographic, spending patterns, spending levels,and product preferences change, then the consequences always impact on profitability. Knowing

which factors are controllable, and those which are not, is critical to survival.



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16. Business planning17. Research and understand customer base dynamics.18. Evaluate competitors and competitive strategies.19. Adapt to the evolving needs of customers.

20. Critically view pricing strategy.21. Clarify and secure buying channels.22. Ensure that managers are able to properly execute the business plan.

23. Cost efficiencies24. Reducing costs,25. Negotiating better input prices and supply sources,26. Developing supply chain efficiencies,27. Researching innovative products which cost less to produce,28. Developing business models with variable scenarios,29. Increasing margins.

30. Investment in cost reduction systems

31. Systems investments for cost and strategic growth initiatives32. IT systems for customer relationship management33. Enterprise resource planning software34. Automated business intelligence and forecasting systems35. Mobile payments36. Cross-sector partnerships and alliances37. Integrated IT systems

38. Market Pricing39. Consumers’ pricing propensity research 40. Competitive pricing benchmarks41. Input costs and scenarios42. Inflation

43. Review of pricing strategy variables44. Dynamic Product Pricing45. Review of sustainability of discounted prices46. Pricing baseline for consumers47. Short, Medium, and Long term pricing strategies for product groups

48. Product Value Proposition49. Consumers’ perceived product values50. Value promotions effects on consumers51. Level of value required by consumers52. Short, Medium, and Long term product value strategies for product groups

Cash and Working Capital

The basis of most of the financial difficulties amongst retailers is the shortage of cash or refinancingoptions. Retailers often did not sufficiently plan for lean times. Retail businesses often haveinsufficient funds to invest in stock, refurbish stores or meet their store overheads.

There is evidence in many countries of a crisis in the cashflow of retailers.

For many retail sectors sales are highly seasonal; whether that is fashion or style based, holidaybased, Christmas, or depended on the weather. In each case the sales achieved at these peakperiods will dictate overall cashflow, margins, and the funds available for re-stocking and capitalinvestments for the entire year.


53. Price Discounting & reduced gross margins54. Seasonal / Peak sales success



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55. Current financial year sales56. Input product prices57. Re-stocking finances58. Increased Variable Costs59. Increased Fixed Costs60. Capital Investment financing

61. Cash constraints62. Availability of third party / lender capital investment63. Availability of third party / lender working capital64. Excess inventory position65. Further potential price markdowns66. Further potential reduced margins

Cash management

Optimising cash management is the key to retail management in the present economic conditions.

Maximising cash flow and working capital by strict budgeting and benchmarking should be the focusfor all managers. The maintenance of sufficient cash balances and the identification of unforeseencalls on cash together with specific and timely plans for corrective actions must be a fundamental

goal.


67. Visibility of financial situation68. Cash management systems69. Short and medium term cash flow forecasting processes70. Identification of future cash calls71. Tax planning & tax relief72. Reduction of variable costs73. Cash retention mechanisms74. Working capital management75. Systemised Cash Controls

Retailing Operations

Operational efficiencies, continual systems improvement, better customer service, exceedingcustomer expectations, are the focus points for all retailers.

Evolving customer expectations

Customer expectations are continually evolving. With the increased use of mobile technology, onlinetransactions and contactless payment options retailers are able to harvest considerable costssavings; however retailers need to adapt to enable transaction effectiveness and product deliver tothe customer. Sales should be improved by developing or enhancing multi-channel strategies.

Just as payment preferences amongst customers are changing, so too are their lifestyles, productpreferences and economic circumstances. Retailers much continually research their target customerdemographic and the overall market circumstances to have the data necessary to adjust productofferings, merchandising, and service levels in order to maximise the appeal of their business.

Value engineering, product sizes, and product quality options help retailers both to maintain marginsand satisfy customer segments. The proper communication of such engineered product options to thetarget customer demographic is essential to maintain the integrity of the business. Integratedcommunications, promotional planning, and transparency help to maximise customer confidence.


76. Payment options77. Ease of purchase

78. Transaction speed79. Product delivery



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80. Research collection81. Product offerings82. Merchandising & POS83. Service levels84. Value engineering85. Product size variations

86. Product quality options87. Integrated communications88. Promotional planning89. Transparency90. Customer confidence

Financial Planning

Indirect taxation is frequently a retailer’s third largest burden on cashflow and as such, has a majorinfluence on the company's operation and financial performance. Retailers are now more able to usemulti-channel selling and distribution, and transfer pricing mechanisms, to optimise both cashflow andretail prices. The use of distribution from lower cost sales or value added tax jurisdictions may providesignificant opportunities to improve margins and cash management.


91. Use of multi-channel selling92. Use of offshore distribution channels93. Use of efficient price transfer mechanisms94. Use of capital allowances and incentives95. Tax incentives for fixed asset expenditures96. Incentives for ‘green’ investments

Data management

Effective data management and its use as a vital resource can greatly assist retailers. In conjunctionwith this is the absolute need for data security. Recent breaches in data security at high profile

retailers have highlighted the importance of adequate protection of customer data. The retail sector isparticularly vulnerable to cyber-attack, considering the huge amount of customer data held fromonline shopping, loyalty schemes and other marketing incentives. Adverse publicity about stolen datawill damage reputations and potentially could damage sales revenues.


97. CRM systems98. Data security99. Secure systems100. Data leakage prevention

Supply chain efficienciesRetailers are especially prone to inefficiencies in the supply chain and failures at any point can have asignificant impact on financial performance. The inability to move the right products to the rightlocations at the right time can compromise retailers, damage customer relations and reduce margins.

Supplier relations and purchasing efficiencies:


101. Logistic operations102. Warehousing & distribution103. Inventory control systems104. Ethical sourcing105. Sustainable procurement

106. Supply chain perspectives107. Sustainability strategy



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108. Social responsibility in procurement109. Supplier risk reviews110. Project management capacity111. Performance requirements

Controls

Many recent corporate failures were as a result of ineffective control on stock, cash and managementinformation. Know what is happening in the business on a day-to-day basis through the rightmanagement information and act on it before it’s too late.


112. Retail controls113. Key retail indicators114. Customer requirements115. Customer preferences116. Product offering adjustments

117. Stock selection118. Selling space allocation119. Cash controls of working capital120. Debtor & Creditor days121. Invoice discounting122. Supplier & procurement alternatives123. Contingency plans & systems

Stakeholder Management

A company’s strategic plans should include mechanisms to support, and in turn retain the support of,key stakeholders; especially in tough economic times, when support from stakeholders, from

investors to creditors are critical. Ideally one maintains a dialogue with all the stakeholders, and themore adept one is in this respect the more one is likely to succeed in the long term.


124. Shareholders125. Bankers126. Landlords127. Suppliers128. Trade Creditors129. Insurers130. Financial services providers131. Tax authorities132. Regulators authorities133. Employee relations134. Public Relations135. Customer communications

Value Preservation

Retailer financial health will range from intensive care in an effort to turn the business around, tostable good health, to vigorous and expansive acquisition activity. However, whatever the health ofthe company, the key driver will be the preservation of value.

The current economic circumstances have seen some failures and much stagnation which

encourages restructuring to decrease costs or increase margins. Albeit there are also a number ofretailers for whom this period will provide an opportunity to expand their business through M & A.



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For retailers in a precarious financial position one strategy is to consider finding shelter from the stormthrough capital restructuring or creditor arrangements; and if that fails then a white knight take-over. Inthese circumstances the preservation of any residual values becomes even more critical.

eCommerce & Multi-Channel Retail Strategy

Retailers must re-position themselves as Omni-channel or Multi-channel operations which offercustomers a compelling product, an excellent value proposition, the best service and ease of access.

This requires a variety of definite strategies:-


136. Optimal product assortment137. Store by store inventory planning138. Sale or return and returns policies139. Consignment stock arrangements140. Pricing strategy across channels141. Online user experience

142. Multi-channel user experience143. Cross-channels marketing plans144. Support operations145. Order fulfilment systems146. Technologies to support these operations147. Skills and organisational structure148. Identification of inter-related business drivers149. Simplification and merging of operational activities150. Business case and financial plan to implement the strategies151. Supplier terms152. Identification of working capital cycles153. Real-time data analysis to reduce the forecast cycle from monthly to daily154. Real-time evaluation of action scenarios and outcome forecasting



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Part L.2 : Retail Marketing Strategy

Elements in Retail Strategy

Audit of Retailer Strategy by Expert Appraisal:


1. Target Markets2. Customer Needs3. Retail Formats4. Method for Satisfying Needs5. Bases for Building Sustainable Competitive Advantage6. Defending Position Against Competitors7. Methods for Segmenting Markets8. Buying Situations9. Benefits Sought by Customers10. Customers Demographics11. Customers Location & Geographic12. Customers Lifestyle13. Customers Psychographics

14. Develop a Sustainable Competitive Advantage:15. Dropping the price of merchandise16. Better store locations17. Selling more popular merchandise18. Increasing levels of advertising19. Attracting & training better store personnel20. Paying higher wages and incentives21. Providing better customer service

22. Internal and External Bases for Competitive Advantage:23. Sources of Capital24. Vendors & Suppliers Terms25. Retail Operation26. Low Cost27. Large Size28. Efficient Distribution29. Efficient Operations30. Unique Knowledge31. Loyal Employees32. Customers Base Improvement33. Creating Store Loyalty

34. Mental and Emotional Attachments to the Store brand

35. Elements in a Strong Brand:36. Top of the Mind Awareness37. Associations with Brand/Store Name38. Methods Used to Develop a Strong Brand39. Massive Exposure40. Symbols to Reinforce Image41. Consistent Positioning Creating Strong Associations42. Limited Brand Extensions

43. Supplier Relationships:44. Low Cost

45. Efficiency Through Coordination46. Electronic Data Interchange (EDI)47. Collaborative Planning and Forecasting to Reduce Inventory and Distribution Costs



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48. Exclusive Sale of Desirable Brands49. Special Treatment50. Early Delivery of New Styles51. Shipment of Scare Merchandise

52. High Quality Customer Service:

53. Achievement goals54. Employees are Not Machines55. Consistent Personnel Policies56. Retail Sales Personnel of good quality57. Hiring Good People at Higher Wages58. Continual Training programme59. Organisational Culture

60. Growth Opportunities:61. Market Penetration62. Market Expansion63. Retail Format Development64. Diversification

65. Related vs. Unrelated markets

66. Retail Planning Process:67. Defined business mission68. Situation audit69. Market attractiveness analysis70. Competitor analysis71. Self-analysis72. Identification of strategic opportunities73. Evaluation of strategic alternatives74. Establishment of specific objectives and resources allocation75. Evaluation of performance76. Development of the retail mix to implement strategy

Elements in the Market Analysis


77. Market Factors:78. Size79. Growth80. Seasonality81. Business cycles

82. Competitive Factors:83. Barriers to entry84. Bargaining power of vendors85. Competitive rivalry86. Threat of superior new formats

87. Environmental Factors:88. Technology89. Economic90. Regulatory91. Social

92. Analysis of Strengths & Weaknesses:93. Management capabilities94. Financial resources



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95. Locations96. Operations97. Merchandise98. Store Management99. Customer loyalty100. Five Forces:

101. Bargaining Power of Vendors102. Barriers to Entry103. Competitive Rivalry104. Threat of Substitution105. Large Customers

106. Using Market Attractiveness:107. Competitive Position Matrix108. Defined strategic opportunities109. Identification of market attractiveness and competitive position factors110. Assigned weightings based on importance of factors111. Rated opportunities on market attractiveness and competitive position112. Calculated scores and evaluate opportunities

113. Evaluation of Retail Market Opportunities:

114. Retailing Concept:115. Customer Orientation116. Value-drivers117. Coordinated Effort118. Goal-Oriented

119. Relationship Retailing:120. Seek long-term relationships with customers121. Focus on customer satisfaction over time122. Satisfaction through meeting or exceeding customer expectations

123. Customer Equality124. Customer Value125. Core Customers identification

126. Retail Value Chain:127. Bundle of benefits provide to consumers128. Ambience129. Quality of products130. Brands offered131. Discounts/good prices132. Shipping133. Convenient Location134. Service

135. Strategic Planning Checklist:136. Situational Analysis137. Opportunities, threats, mission138. Set Objectives139. Sales, profits, image/positioning140. Identify Target Market141. Mass marketing -v- Concentrated -v- Differentiated142. Aggregation -v- Segmentation143. Identify Specific Tactics144. Control Process/ Retail Audit System145. Strategies and tactics are evaluated and revised146. Feedback

147. Performance measures (turnover, sales, profits)



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148. Strategic Planning Factors149. Develop Broad Strategy150. Competition (Intratype –v- Intertype)151. Sustainable competitive advantage

152. Sustainable Factors:

153. Price154. Location155. Vendor relations156. MIS-technology157. Low cost operations

158. Business Grow Factors:159. Market Penetration160. Present customers, same segment161. Market Expansion162. Existing format to new customers (new geographic area or demographic group)

163. Future Business Growth:

164. Retail Format Development165. New format to existing customers166. Diversification167. New format to new segments

168. Institutional Change in Retailing169. Wheel of Retailing170. Accordion Theory171. Dialectic Process172. Natural Selection173. Retail Life Cycle

174. Wheel of Retailing Strategy considerations:

175. New types of retailers enter a market as low-margin, low-price, low status merchants176. These retailers gradually trade up which increases their operating costs177. Retailers become high cost merchants and then are vulnerable to new competitors

178. Retail Accordion Theory Strategy considerations:179. Broad-based outlets with wide assortment180. More specialised with narrow assortment181. Back to wide assortment

182. Dialectic Process Strategy considerations:183. Retailers mutually adapt in the face of competition from “opposites”

184. When challenged by a competitor with a differential advantage, the established retailer will

adopt strategies and tactics in the direction of that advantage (making the innovator lessattractive)

185. Natural Selection and Adaptive Behaviour Strategy considerations:186. Environmental need for a certain kind of retailing institutions which will evolve187. Need ceases to exist and the institution will tend to disappear188. Retailers that effectively adapt to environmental changes are most likely to survive

189. Retail Life Cycle Strategy considerations:190. Introduction191. Growth/ Accelerated Development

192. Maturity193. Remodel stores



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194. Lower costs195. MIS – technology196. Lower prices197. Re-evaluate operational practices and service198. Value delivery199. Decline



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Part L.3 : Strategic Planning in Retailing

Chapter 3

Even the largest retailer sometimes drops the ball and is left without a defined and well-integratedstrategy and is then left unable to cope with the marketplace.


The retailer’s process of strategic retail planning:

1. Provide a thorough analysis of the requirements for doing business for different product andmarket segments

2. Outline the retail goals

3. Determine how to differentiate itself from competitors and develop an offering that appealsto each customer segment

4. Fully understand the legal, economic, and competitive environment

5. The retailer’s total efforts are coordinated

6. Crises are anticipated and avoided

Overview of Strategic Retail Management


7. Retailing objectives

8. Building and Sustaining the Retailing Relationships

9. Strategic Planning in Retailing

10. Situation Analysis:a. Capital requirementsb. Store-Based Strategy Mixc. Web, Non-store-based, and other forms of multi-channel trading

11. Targeting Customers and Information Gathering:a. Identifying and Understanding Consumersb. Information Gathering and Processing

12. Store Locations:a. Trading Area Analysisb. Site Selection

13. Managing the Business:a. Organisation and Human Resource Managementb. Operations Management: Financialc. Operations Management: Operational

14. Merchandise Management and Pricing:a. Developing Merchandise Plansb. Implementing Merchandise Plansc. Financial Merchandise Managementd. Pricing

15. Communicating with the Customera. Establishing and Maintaining a Retail Image

b. Promotional Strategy

16. Integrating and Controlling the Retail Strategy



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Situation Analysis


Situation analysis is an honest evaluation of the opportunities and threats facing the retailer:17. What is the firm’s curr ent status?

18. In which direction should the retailer be heading?a. Organisational missionb. Ownership and financingc. Management optionsd. Goods / Service sold

19. Opportunities and marketplace openings20. Market gaps retailers have not yet not capitalised on21. Competitive threats22. Adverse marketplace factors23. Trend spotting

24. Customers satisfaction25. Competitive advantages26. Merchandising shifts27. Store locations28. Price points29. Promotional strategy30. Retailer image

Organisational Mission


The organisational mission is the retailer’s commitment to a type of business and to a distinctive rolein the marketplace.

31. Attitude toward consumers32. Attitude toward employees33. Attitude toward suppliers34. Attitude toward competitors35. Attitude toward regulations36. Is the business based on the goods and services sold or consumer needs?37. Is the retailer a market leader or a follower?38. Does the retailer seek a broad customer or a narrower customer base?39. Does the retailer change company goals as a reaction to a dynamic retail environment?

40. Does the retailer have good organisational skills?a. Strong customer serviceb. Popular productsc. Community involvementd. Excellent retail locationse. Excellent execution in delivering productsf. Consistent delivery of its value proposition

Ownership and Management Alternatives

An essential aspect of situation analysis is assessing ownership and management alternatives.Ownership is crucial because it dictates both the existing financial structure of the retailer and the

future availability of capital funding and/or how capital investments can be funded.



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Management options range from the owner –manager to a complex arrangement of professionalmanagers. The size of the company can be irrelevant as is seen from many large multi-nationalcompanies which are in fact controlled by one patriarchal figure who perceived himself as the Owner-Manager, despite what the shareholders think.

Strategically, the management format also has a dramatic impact. With an owner –manager (actual orperceived), planning tends to be less formal and more intuitive, and many tasks are reserved for thatperson. With professional management, planning tends to be more formal and systematic. Yet,professional managers are more constrained in their authority than is an owner –manager. In acentralised structure, planning clout lies with top management or ownership; managers in individualdepartments have major input into decisions with a decentralised structure.

Goods/Service Categories

The strategic plan is centred on the selection of goods/service categories, the lines of business, inwhich the retailer operates.


41. Type of business42. Management abilities43. Financial resources44. Time constraints

Management Abilities

Management abilities depend on the aptitudes of the managers:


45. Experience of the type of business

46. Potential to be effective47. Education & formal qualifications48. Retail practices and policies49. Previous experience50. Initiatives51. Reaction to competitive developments52. Customer interaction53. Staff interaction54. Supplier interaction



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Financial Resources

Adequate projection of the financial resources needed is essential to the retailer.


55. Tendency to underestimate financial problems

56. Operational expenses controls57. Profitability stages58. Budget and expenditures controls59. Miscalculations of costs of renovation or operation of existing facilities60. Investment funding61. Merchandise assortment funding & outlay62. Inventory investment63. Location & facilities investments

Time Constraints

Time constraints on managers differ significantly by goods or service category:


64. Automation of operations65. Outsourcing of activities66. Managing time-pressed customers67. Store opening hours & shift patterns68. Seasonal market factors69. Self-service70. Standardisation of operations71. Formalisation of financial controls72. Key service provider s’ time constraints 73. Delegating of work to back-office operations74. Levels of personal services75. Staff shortages due to costs76. Cash controls77. Off-hours activities

a. Cleaningb. Stocking shelvesc. Financial reconciliation

Objectives

The situation analysis leads to how the retailer sets objectives for the long-term and short-terms

performance targets required.


Such goals relate to:

78. Sales79. Profit80. Satisfaction of stakeholders81. Image82. Increasing comparable store sales83. Gross margins84. Return on investment85. Earnings per share



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Sales

Sales objectives are related to the volume of goods and services a retailer sells and includes:


86. Sales growth

87. Revenue stability88. Market share

89. Short-term profits90. Opening new units91. Maintaining sales volume92. Maintaining market share93. Maintaining price lines94. Market share by category sales

95. Discount sales strategies96. Moderate price/units sales strategies97. Prestige sales strategies

98. Price inflation

Profit

With profitability objectives the retailer will seek a minimum profit level during a designated period.


99. Pre-tax profit100. Return on investment101. Operating margin

Satisfaction of Stakeholders

Retailers typically strive to satisfy their stakeholders: shareholders, customers, suppliers, employees,and regulators.


102. Shareholder satisfactiona. Short-run

b. Long-runc. Stable dividends

103. Customer satisfactiona. Criticismb. Adaption

104. Supplier relationsa. Favourable purchase termsb. New productsc. Good return policiesd. Shipmentse. Cooperation

105. Labour relationsa. Absenteeism



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b. Treatment of customersc. Staffing turnover

106. Regulatory relations

Image Positioning

Image positioning is how the retailer wished to, and possibly is, perceived by consumers and others.


107. Innovative108. Conservative109. Radical110. Specialised111. Broad-based112. Discount-oriented113. Upscale

114. Image relative to retail category115. Image relative to competitors116. Image relative to product positioning117. Image relative to positive consumer responses

118. Mass merchandisinga. Discount or value-oriented imageb. Wide and/or deep merchandise selectionc. Large store facilitiesd. Low operating costs & storese. Economy outletsf. Value-conscious shoppers

g. Popularityh. Broad customer basei. High customer traffic

j. High stock turnover

119. Retailers Niche in the marketa. Specific customer segmentsb. Segmented marketc. High level of loyaltyd. Chosen demographice. Stress factors other than pricef. Better customer focusg. Convergence of product lines

120. Category incursion / cross-channela. Muddled value propositionb. Conveniencec. Positioning changes

121. Retail positioning mapa. Price and serviceb. Product lines offeredc. Price -v- serviced. Product assortment & selectione. Customer service



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Selection of Objectives

Clearly set goals and a strategy to achieve:


122. Sales growth aspirations

123. Operating earnings per share124. Capital expenditure goals125. Market share requirement126. Maintenance of supplier rating127. Sales per square foot128. Brands coverage129. Flexibility130. Adaption of goals131. Competitive on price132. Differentiation133. Productivity134. Management Focus

Checklist


135. Capital investment136. Goodwill137. Sales138. Inventory levels139. Profits140. Customer base141. Sales seasonality142. Debts143. Property144. Storefronts145. Store fixtures146. Merchandise assortment147. Advertising policy148. Customer service policy149. Pricing policy150. Units & locations151. Trading area overlaps of stores



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Identification of Consumer Characteristics


The retailer ’s target market:

152. Mass marketing, selling goods and services to a broad spectrum of consumers

153. Concentrated marketing, zeroing in on one specific group

154. Differentiated marketing, aiming at two or more distinct consumer groups, with differentretailing approaches for each group

155. Define target markets156. Wide assortment of medium-quality items at popular prices157. Narrow, deep product assortment at above-average prices158. Multiple market segments159. Unique goods and services for each market segment

Competitive advantages and strategy mix:

160. Competencies of the retailer relative to competitors161. Consumers target advantages162. Store locations163. Product quality164. Advertising165. Customer services166. Product prices167. Brands168. Consumer behaviour

Overall Strategy


This involves two components:

169. controllable variables (the aspects of business the retailer can directly affect)170. uncontrollable variables (those to which the retailer must adapt)

Controllable Variables


171. Store location172. Managing the business173. Merchandise management174. Pricing175. Communicating with the customer



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Store Location


176. Store location decisions177. Store and/or non-store format

178. Competitor locations179. Transportation access180. Population density181. Type of neighbourhood182. Nearness to suppliers183. Pedestrian traffic184. Store composition

Managing the Business


185. Retail organisation186. Human resource management187. Operations management188. Task management189. Defined policies190. Resources management191. Authority delegation192. Managers’ responsibility193. Managers’ rewards194. Employee hiring195. Employee training196. Employee compensation197. Employee supervision

198. Human resource management techniques199. Job functions200. Employee responsibility201. Chain of command202. Satisfaction of customers203. Satisfaction of employees204. Fulfilment of management goals205. Asset management206. Budgeting207. Resource allocation208. Store format and sizes209. Store personnel use210. Store maintenance

211. Energy management212. Store security213. Insurance214. Credit management215. Computerisation216. Crisis management



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Merchandise Management and Pricing


217. Quality of the goods and services offered218. Width of assortment

219. Product categories carried220. Depth of assortment221. Variety of products carried in any category222. Buying decisions223. Buying frequency224. Buying terms225. Suppliers226. Purchase forecasting227. Purchase budgeting228. Accounting procedures229. Inventory by type of merchandise230. Assess of items sold and left in stock231. Range of prices

232. Prices within each product category233. Markdowns planning

Communicating with the Customer


234. Image creation235. Image maintenance236. Influence on consumer perceptions237. Storefront238. Store layouts and displays, floor colours, lighting, scents, music239. Store sales personnel240. Community relations241. Advertising campaigns242. Personal selling243. Sales promotion244. Publicity campaigns

Uncontrollable Variables


245. Consumers246. Competition247. Technology248. Economic conditions249. Seasonality250. Legal restrictions



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Consumers


251. Demographic trends252. Lifestyle patterns

253. Tastes254. Consumer trends and desires255. Price range of customer purchases

Competition


256. Entry of competitors257. New or established competitors258. Competitors’ target markets

259. Competitors’ merchandising focus260. Competitive edge

Technology


261. Computer systems262. Inventory control263. Checkout operations.

264. Warehouse265. Transport of merchandise266. Consumer ordering267. Online activities

Economic Conditions


268. Unemployment269. Interest rates270. Inflation

271. Tax levels272. Annual gross domestic product (GDP) growth273. Economic factors274. International economic factors275. National economic factors276. Provincial & local economic factors



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Seasonality


277. Seasonality278. Weather

279. Cycle of demand

Legal Restrictions


280. Statutory laws and regulations281. Competition laws282. Fair trading practices283. Zoning laws284. Blue laws which limit the times during which retailers can conduct business285. Construction codes

286. Consumer restrictions287. Licensing288. City / town jurisdictions

Integrating Overall Strategy


289. Coordinated approach

290. Consistent approach

291. Integrated strategy

292. Systematically appraisal of uncontrollable variables

Legal Constraints on Retailers


293. Store locations and Zoning laws

294. Blue laws restrict the days and hours during which retailers may operate.295. Environmental laws limit the retail uses of certain sites.

296. Door-to-door (direct) selling laws protect consumer privacy.

297. Local ordinances involve fire, smoking, outside lighting, capacity, and other rules.

298. Leases and mortgages require parties to abide by stipulations in tenancy documents.

299. Managing the Licensing provisions mandate minimum education and/or experience forcertain personnel.

300. Business Personnel laws involve non-discriminatory hiring, promoting, and firing ofemployees.

301. Antitrust laws limit large firm mergers and expansion.302. Franchise agreements require parties to abide by various legal provisions.



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303. Business taxes include real-estate and income taxes.

304. Recycling laws mandate that retailers participate in the recycling process for variousmaterials.

305. Merchandise Trademarks provide retailers with exclusive rights to the brand names theydevelop.

306. Management and Merchandise restrictions forbid some retailers from selling specifiedgoods or services.

307. Pricing Product liability laws allow retailers to be sued if they sell defective products.

308. Lemon laws specify consumer rights if products, such as autos, require continuing repairs.

309. Sales taxes are required in most provinces or territories, although tax-free days have beenintroduced in some locales to encourage consumer shopping.

310. Unit-pricing laws require price per unit to be displayed (most often applied tosupermarkets).

311. Collusion laws prohibit retailers from discussing selling prices with competitors.

312. Sale prices must be a reduction from the retailer’s normal selling prices. 313. Price discrimination laws prohibit suppliers from offering unjustified discounts to large

retailers that are unavailable to smaller ones.

314. Communicating Truth-in-advertising and -selling laws require retailers to be honest and notomit key facts.

315. Customer Truth-in-credit laws require that shoppers be informed of all credit terms.

316. Telemarketing laws protect the privacy and rights of consumers regarding telephone sales.

317. Bait-and-switch laws make it illegal to lure shoppers into a store to buy low-priced itemsand then to aggressively try to switch them to higher-priced ones.

318. Inventory laws mandate that retailers must have sufficient stock when running sales.

319. Labelling laws require merchandise to be correctly labelled and displayed.

320. Cooling-off laws let customers cancel completed orders.



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Tactical Decisions

Tactical or Short-run decisions for each controllable part of the strategy:


321. Store locations and trading-area analysis which gauges the area from which

customers are drawn.

322. Level of saturation in a trading area.

323. Optimised relationships with nearby retailers.

324. Positioning of new outlets.

325. Clear chain of command from managers to store workers.

326. Organisation structure on how personnel are hired, trained, and supervised.

327. Asset management which track assets and liabilities.

328. Budget spending controls.

329. Operations systemisation.

330. Merchandise management and pricing:

331. Assortments and space allocations in each department.

332. Innovative new merchandise.

333. Liquidation of slow-moving items.

334. Purchase terms negotiated and suppliers appointed.

335. Selling prices reflecting the firm’s image and target market.

336. Prices offer consumers choice.

337. Adaptive actions to respond to higher supplier prices and react to competitors’ prices.

338. Communicating with the customer:

339. Storefront and display windows.

340. Store layout and merchandise displays.

341. Gaining consumer enthusiasm

342. Looking fresh and modern.

343. New products.

344. React to changing seasons.

345. Advertising placed during the proper time and in the proper media.

346. Deployment of sales personnel varied by merchandise category and season.



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Controls


347. Systematic process for analysing the performance of the retailer.

348. Retail audits

349. Strengths and weaknesses revealed as performance is reviewed.

350. Identification of profit drivers.

351. Identification of profit problems.

Feedback


352. Management receives systematic feedback

353. Positive feedback on sales low employee turnover.

354. Negative on falling sales and high employee turnover.



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Part L.4 : Recession Strategy

Whatever politicians might say about the economic climate, and whatever their prognosis is for the

future, the fact is that economic conditions have radically changed in recent years, and are forecast toremain difficult for retailers in the immediate future.

Recent retail bankruptcies, store closings, and increasingly vacant retail space is all too evident inmany countries.

The retail is one of the largest commercial sectors in all countries the effects of a retail downturnripples throughout the national economies of all countries. Consumer spending also accounts for 50to 65% of most national economies and this is the key indicator of the state of a national economy.

Economic Conditions

The current economic conditions are not encouraging to retailers. It is normal in bad economic times

that the small retailers suffer, usually disproportionately, however there is also evidence that thelargest of retailer group are also suffering.

The factors which are effecting the economy also include rising commodity prices, rising productprices, lower disposable incomes, lower savings rates, declining consumer spending, a housingslowdown, and rising unemployment. All of these indicators guarantee that the period of strong retailexpansion and increasing profit margins and over for the foreseeable future. Retail is of course thefinal link in the supply chain and as demand weakens the effects will ripple through the supply chain,the logistic providers, and the manufacturing base.

The impact on manufacturing, distribution, and employment in other industries may endure for farlonger than the events that actually triggered the economic decline. As economic forces slow or stopaltogether, retail demand further weakens thus exacerbating the decline. In the end, the retail industryas a whole is severely affected and here the losers will outnumber the winners.

Forecasts for retail are negative and it is probable that the retail sectors will not even meet thelowered expectations of recent government forecasts.

Retailers will have to change their business planning and business models to survive in the long term.

Consumption Smoothing & Product Substitution

The basic economic concept of consumption smoothing can help understanding of how the retailsituation has developed and what can be expected next. Consumption smoothing refers to theconsumer’s preference to maintain a certain standard of living over time. Consumption Smoothingalso means consumers will use savings as a tool to compensate when incomes are low, or save more

when incomes are high, thus “smoothing” their consumption patterns. This does not mean thatspending will not increase or decrease as incomes levels change, but rather that the peaks andtroughs will be less pronounced.

The theory suggests that people will not match income reduction with an equivalent amount ofexpenditure reduction, and vice versa. Instead they will mitigate income reductions by turning to creditin bad times and by the same token they will not spend all their income in good times by turning tosavings products. Evidence of this trend can be found in the proliferation of credit cards and theirincreased use in rough economic patches.

In that a certain amount of consumer consumption is fixed and does not vary with income, shortagesare made up by the liquidation of savings or increasing debt to maintain the habitual standard ofliving. Financing personal consumption when income is decreasing comes down to a choice betweendebt and equity, and most recently with the historic rise in housing values saw this framework altered.

As housing prices inflated, individuals had more paper wealth, and this triggered spending increasesby using the paper wealth as a real stream of income.



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Consumers felt wealthier and they spent more, thereby fuelling the expansion of consumption, whichin turn simultaneous stimulated the growth and inflation in the housing market. At the start of thedemand growth stage, consumers paid off credit card debt accumulated in the previous periods byrefinancing their homes. Unfortunately, real incomes did not rising during this period and manyconsumers smoothed their new “wealthier” consumption levels with more credit card debt. Manyhouseholds refinanced their homes more than once during this expansion, only to be faced with thereality of the situation when home prices did cannot continue to increase at the same rate and theequity in the home did not have the same liquidity as traditional savings.

Consumers are not at a stage where they have liquidated much of their savings, and are unable toobtain credit, and therefore must sustain a lower level of spending and accept a reduced standard ofliving. This response to economic times entrenches the downturn, and increases its duration.

Whereas Consumption Smoothing explains the fundamental choices behind savings and spending forthe consumer, it does not explain their specific spending decisions. During a recession, the typicalconsumer is forced to make difficult decisions and economic trade-offs. In terms of consumption thesechoices are often manifested as substitution between goods.

When budgets are constrained, the typical consumer will substitute down or choose inferior products.

Consumers will replace an expensive branded food item with a less expensive or own-brand fooditem.

This trading down is a type of consumption smoothing allowing the consumer to get the same level ofconsumption but at a lesser quality per unit. This theory of product substitution holds when there areinferior products to trade down to and they are reasonably product substitutes for the more expensiveproduct. This process is frequently seen is the consumer’s choice of where to shop. While mostretailers are experiencing sales declines, discount retailers are thriving as people trade down fromexpensive specialty and department stores to shop at discount and wholesale stores. These trendshave great impacts on a retailer’s strategy to survive a recession or downturn.

Managing Inventories & Costs

Profit maximisation at any given inventory level is a challenge in the best of economic times, during arecession it becomes both more critical to success, and much more difficult. For small retailers andindependent stores this task is increasingly complicated due to payment terms and minimum ordersizes. It is necessary to reduce inventories for most retail establishments particularly those specialtyitems which are not sold in any large numbers. Reducing existing inventory is typically done via storesales and promotions which allow the retailers to convert some of their existing assets into cash.Converting inventory to cash is an important first step; however, most retailers cannot sustainthemselves through a recession on existing inventories and therefore must place orders for newinventory under a great deal of uncertainty.

Reductions in demand for new inventory sends ripples throughout the supply chain and this coupledwith high fuel prices results in larger minimum order sizes and less favourable terms for delayed

payment. The most prudent retail strategy under these circumstances is to order the minimumnecessary to sustain existing demand. This is a difficult balancing act as no retailer wants to take thechance of being out of a mainstay item and losing a shopper to a competitive retailer. One strategy isto have ample supply of items that sell daily or frequently, typically these are the items that get peopleinto the store. Another strategy is to vary selection, offering less high end items and more inexpensiveto moderately priced items for budget conscious consumers.

When inventories are limited care must be taken in the appearance of the store as sparse stocks canconvey a negative impression to customers. A well-stocked store implies quality and a successfulretailer and encourages better customer relations. When inventory is limited retailers need to conveythe same message of abundance and quality to consumers using reduced stocks; and this meansthey must change the appearance of the store display areas. A redesign of the store layout can bedone inexpensively and with great results and impact. Optimal merchandising and use of space is onecost-effective method which retailers have to counter tough times.

Suppliers facing their own constraints and recognising retailers need to pull back on inventoryspending will offer deep discounts to retailers who place large orders or pay their invoice quickly. For



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the majority of small and independent retailers these “deals” are not a good investment and canexacerbate the effects of the downturn. The discounts are intuitively appealing to retailers; howeverinventory is only as useful to a retailer as its ability to be converted to cash quickly. Even with a heavydiscount, on infrequently sold items there is little or no profit in the sale.

Retailers, big and small, must put their liquidity ahead of considerations such as profits and mark-upsper unit. Often retailers are hesitant to liquidate or reduce inventory at a loss per unit in tough timesand therefore feel a cash-flow crunch. With no cash safety net or reserves, any additional shock totheir demand can make fundamental business expense payments difficult to maintain. During arecession, many retailers are bankrupted for cashflow and liquidity reasons.

Many retailers were unprofessional and did not anticipate the downturn; many then compounded thisby underestimating its severity and duration. This demonstrated inadequate management and badbusiness planning. These retailers were not realistic about their sales prospects and did not make thedifficult planning decisions necessary.

Retailers needed to analyze the inventory for the essential items and then actively reduce the stock ofnon-essential items. Retailers needed to set limits for ordering new inventory and then produce firmplans for on-going management, presentation and marketing of the inventory they had. Thesuccessful retailers retained as many months of cash reserves as possible that would be sufficient tocover basic expenses such as rent, utilities, and wages.

Audit of Retailer Economic Strategy by Expert Appraisal:


1. Order size reductions2. Supplier payment terms negotiated3. Minimum order sizes negotiated4. Company de-stocking5. Store inventory reduction6. Store sales & promotions

7. Product selection adjustments8. Concentration on key product offerings9. Product price point adjustments10. Product price range adjustments

11. Store stock reductions12. Store display redesigns13. Store space re-allocations

14. Liquidity maintenance15. Cash reserves16. Cashflow maintenance

17. Assessment of business planning18. Ability to predict economic conditions19. Ability to forecast sales revenues



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Rising Costs & Raising Prices

Retailers in all sectors are experiencing rapidly rising operational costs and inventory prices. Theinteraction of inflationary price increases at a time of recession and reduced sales makes it difficult forretailers to make the compensatory product price rises for fear of losing even more revenue.

Product price increases cannot be passed on to consumers at a time when they are dramaticallycutting back on spending.

In a downturn retailers may be content to maintain their previous levels of income or profit; howeverthey do not want to make a loss. Thus the temptation is to raise product prices, if not immediately,then immediately that there are signs of an up-turn in the economy. What many retailers fail to fullyappreciate are the effects of Consumption Smoothing, Demand Lag and Price Elasticity.

The demand formula in the perfect market states that an equilibrium product price is achieved whensupply meets demand. The price range achieved would ideally include a healthy mark-up for theretailer. However when product prices become detached from normal demand then consumptioncollapses.

Retailers need to very specifically monitor the Price Elasticity for each product group. Certain productgroups, such as basic foodstuffs, fuel, basic clothing, et cetera are price inelastic and retailers may

increase prices within an elasticity range. Many specialist and discretionary products however can beprice elastic, often in an irrational way which reflects consumer psychology more than marginalpropensity to consume. In addition products which have substitutes also tend to be price elastic asprice increases can be readily countered by the consumer through product substitution.

Thus for speciality retailers understanding the nature of demand for a product enhances their ability topitch a product price at the optimum level. Pricing products based on their elasticity, and likely productsubstitution, is an essential retail tool during times of economic difficulty.

Without knowing how long input prices will be affected it is difficult for many retailers to incur theadditional expense to raise prices. This transaction cost theory is less applicable when input pricesare rising due to long term economic trends and less in response to price shocks. However, thetheory does point to an interesting dilemma for some retailers as it is more costly for them to raiseprices due to operational costs which then compounding the problem because the product is elastic

and the fall in demand costs as much as the operational costs incurred. When the economy movesinto a recession, consumers cut back on discretionary purchases and tend to look for productsubstitutes to compensate them. Retailers can themselves hedge their bets by offering consumers achoice of a high price product of a known value or a lower price substitute product; which in fact theconsumer will assume is a lower value product. Consumers know that prices are rising and theyknow that retailers have to in turn raise their prices; if a retailer can offer the consumer an appropriateoption then the consumer is likely to remain loyal to that store.

Staff Costs

Audit of Retailer Economic Strategy by Expert Appraisal:


20. Total staff remuneration21. Levels of employment22. Overall labour costs23. Staff lay offs24. Full time staff25. Part time staff26. Full to part time staff transition27. Employees per shift28. Reduced store hours



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Checklist


29. Excessive inventory financing30. Profitable inventory

31. Unproductive inventory32. Supplier Debt levels

33. Lower product price substitutes

34. Sales and promotions to liquidate unproductive inventory

35. Maintenance of sales levels36. Maintenance of customer numbers

37. Price increases38. Price decreases39. Price elasticity

40. Inventory control41. Stock levels

42. Retail layout redesign & reallocation43. Retail space reduction

44. Strategic contingency plans

45. Customer dialogue mechanisms46. Customer continuity47. Customer loyalty programmes48. Best prices policy

49. Best environment and service50. Customer convenience, deliveries, opening hours



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Part L.5 : Strategic Planning in a Global Retail Context

The strategic planning challenge for both medium scale and large retailers is clear and increasingly

global. Global retail strategy must consist of several factors:


1. The retailer must offer a competitively superior product as defined by local consumers.

2. The retailer must develop superior economics across the value chain that delivers theproduct to the local consumer.

3. The retailer must execute in the local environment.

Planning Process and Global Retailing

Retailers looking to operate globally must consider:


4. Assess the international potential5. Focussing on assessing international potential6. Getting data on the trends in the retail sector7. The retailer’s domestic position in that retail sector8. Effects that international activity may have on current operations9. Status of in-house resources10. Estimate of sales potential

11. Research & market intelligence.12. Fundamental cultural considerations13. Local partnering14. Resource allocation

15. Expert and professional advice and research:a. Government assistance for export creditsb. Government agency assistance

16. Selection of target countries:a. Economic strengthb. Political stabilityc. Regulatory environment

d. Tax policye. Infrastructure developmentf. Population sizeg. Cultural factorsh. Government regulationsi. Technological stage of the country

17. Development and implement of the international retailing strategy:a. Strategy identifies and manages objectivesb. Specification of tacticsc. Schedules of activities and deadlinesd. Allocation of resourcese. Sales offerings to be sold

f. Competitors’ strength g. Conditions in target countries



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h. Key marketing factorsi. Exploitation of unique local conditions and circumstances

j. Local competition

Opportunities and Threats in Global Retailing

Opportunities


18. Foreign markets used to supplement domestic sales.

19. Foreign markets represent good growth opportunities when domestic markets are saturatedor stagnant.

20. The retailer is able to offer goods, services, or technology not yet available in foreignmarkets.

21. Competition is less in foreign markets.

22. Tax or investment advantages in foreign markets.

23. Government and economic shifts allow entry to foreign firms.

24. Communications is easier. Online activities enable the retailer to reach customers andsuppliers outside the domestic markets.

Threats


25. Cultural differences between domestic and foreign markets.

26. Management styles not easily adaptable.

27. Foreign governments place restrictions on some operations.

28. Personal income poorly distributed among consumers in foreign markets.

29. Distribution systems and technology inadequate.

30. Institutional formats vary too greatly.

31. Currencies and exchange rate problems.

Standardisation


32. Application of domestic strategies directly to the foreign markets

33. Standardisation of personnel systems

34. Standardisation of physical facilities

35. Standardisation of operations

36. Standardisation of advertising messages

37. Standardisation of product lines

38. Standardisation of factors to be adapted to local conditions and needs



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Factors Affecting Global Retailing Strategy

Factors which affect the international retailing strategy:


39. Timing:

a. First to the marketb. Wrong-foot competitors with innovative products or systems

40. Balanced international program:a. National market selection

41. Growing middle class:b. Expandable incomec. Propensity to consumer new product offerings

42. Matching concept to market:a. Developed marketsb. Quality offeringc. Style & fashiond. Specialty operationse. Developing markets

f. Discount / combination merchandiseg. Priceh. Assortmenti. Value

j. Convenience

Developed Markets


43. Issues:

a. Increasing competition, deteriorating margins, and saturationb. Consolidation and rationalisation (cost cutting), forcing poor performers out of the

marketc. New enabling technologiesd. Demanding customerse. Limited growth

44. Implications:a. Retailers must focus on maximising operational efficiencies, vendor relationships,

infrastructure, and technologyb. For growth, large retailers are expanding regionally and then globally into developed

or developing markets

Developing Markets


45. Issues:a. Minimal purchasing power per capita, yet strong economic growth, pent-up demandb. Huge customer base, representing up to 70% of the world’s population c. Infrastructure issues, transportation, communication, etc., may pose problemsd. Disorganised, fragmented retail structures that are vulnerable to new entrantse. The number of indigenous large retailers is small to nonef. Strong protectionist measures may exist

46. Implications:

a. Tremendous opportunity for large retailers, limited competition, huge growth potentialb. Initial entry may need to be through intermediary, joint venture, etc.



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Market Entry Decisions

47. Solo - joint ventures - franchisees48. Store locations and facilities

49. Product selection50. Service levels51. Marketing support costs52. Advertising to sales ratios53. Retail space footage per capita54. Brand image55. Cluster strategies56. Critical mass considerations57. Specialist skills58. Specialisations



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Part M.1 : Retailing Characteristics


Three factors in retailing are of particular relevance to businesses and each factor imposes uniquerequirements on retailers.

Average Value of Sales Transaction

Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_M.1

The average value of sales transaction per shopping trip is substantially less than US$100 fordepartment stores, specialty stores, and supermarkets. This modest level of income per customer visitcreates a need:

1. To tightly control the costs associated with each transaction (for example, payment cardcosts, sales personnel, bagging, et cetera)2. To maximise the number of customers drawn to the retailer3. To ensure marketing expenditure is effective4. To ensure that sales are augmented through promotions5. To increase impulse sales by more aggressive selling6. To keep operational costs in control7. To automated and systemise inventory management8. To ensure proper in-stock levels9. To ensure proper product selection10. To computerised inventory systems, stock control and stock ordering

Unplanned or Impulse Purchases

A large percentage of consumers do not look at advertising before shopping trips, do not prepareshopping lists (or they deviate from the lists once in stores), and make fully unplanned purchases.

Such consumer behaviour shows the value of in-store displays, attractive store layouts, and well-organised stores, catalogues, and web sites.


11. Positioning of impulse products12. Visibility of impulse products13. Merchandise management of high-traffic areas14. Stock control of impulse products

Retail Store Experience

Notwithstanding the inroads made by non-store retailers, most retail transactions are still conducted instores. Many consumers like to shop in person, they want to touch, smell, and/or try on products; theylike to browse for unplanned purchases; they feel more comfortable taking a purchase home withthem than waiting for a delivery; and they desire privacy while at home.

This store-based shopping orientation has implications for retailers; they must work to attractshoppers to their stores and consider such factors as store locations, transportation, store hours,proximity of competitors, product selection, parking, and advertising.

Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_M.115. Events and promotions to promote products



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16. Shopper interaction planning with products17. Sales staff availability to sell discretionary products

Application of Retail Strategies

The application of a retail strategy provides the retailer with an overall plan which guides the retailoperation. It is designed to influence company’s business activities and its responses to marketforces, such as competition and the economy. All retailers, regardless of size or type, produce aspecific retail strategy which would include the following:


18. Definition of the type of business in terms of the goods or service categories and the specificcompany orientation (such as full service or “no frills”).

19. Setting long-term and short- term objectives for sales & profit, market share, image, et cetera.

20. Determination of the customer sectors to target on the basis of their characteristics (such asgender and income level) and needs (such as product and brand preferences).

21. An overall, long- term plan that gives general direction to the company and its employees.

22. Implementation of an integrated strategy that combines such factors as store locations,product assortment, pricing, and advertising and displays to achieve objectives.

23. Evaluation of performance on scheduled basic.

24. Formalised mechanisms to correct weaknesses or problems when identified.

Audit of Retailer Strategies by Expert Appraisal:

25. Growth-oriented objectives26. Use of cashflow generated to grow the business

27. Appeal to prime markets

28. Multi-format29. Diversity of the customer base30. Diversity and range of retail formats31. Distinctive image

32. Retail Focus

33. Strong customer service and overall execution34. Execution of the value proposition

35. Employee relations.

36. Innovation37. Innovative products and services38. Controlled labels39. Speciality products40. Sub-brands41. In-store or on-site subsidiary products & services

42. Commitment to technology43. Technology planning44. Distribution channel technologies45. Loyalty programs46. Financial operations47. Data mining



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48. Community involvement

49. Constant performance monitoring50. Performance indicators51. Key financial metrics

52. Sales growth53. Earnings per share54. Debt to equity55. ROI (return on investment)56. Market share57. Development of new control label products58. Operating and administrative cost management

Application of Retail Concepts

Retailers, especially those with a large footprint, have to ensure a corporate culture to ensure avigorous and enforceable corporate culture which is customer focussed. This means an

institutionalised approach to strategy development and implementation which is value-driven and hasdefined goals.


59. Customer orientation which determines the attributes and needs of customers andendeavours to satisfy these needs to the fullest.

60. Coordinated effort which integrates all plans and activities to maximise efficiency.

61. Value-driven focus which offers good value to customers, whether it be upscale or discount.This means having prices appropriate for the level of products and customer service.

62. Goal orientation which sets goals and then uses its strategy to attain them:a. Clear concept of customer needs

b. Precise planningc. Prices that reflect the value offeredd. Feedback from customerse. Communicating with shoppersf. Placing shoppers desires at the heart of the company’s success g. Consistent strategies (brands, plentiful sales personnel, attractive displays, and

above-average prices for a quality service)h. Offering prices perceived as “fair” and good value for the money i. Development of the total retail experience

j. Development of customer servicek. Development of relationship retailing



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Total Retail Experience

Irrespective of how consumers may shop, at a discount retailer, at a convenience store, or at a full-service firm, all these diverse customers have something crucial in common: each encounters a totalretail experience (everything from parking to the checkout counter) in making a purchase.

Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_M.1The ideal retail store characteristics are:

63. Appearance64. Cleanliness65. Convenience66. Store ambience67. Relaxed and comfortable68. Good place to spend time and browse

The total retail experience includes all the elements in a retail offering that encourage or inhibitconsumers during their contact with a retailer. Many elements (for example, number of salespeople,displays, prices, brands, and stocks) are controllable by a retailer; whereas other elements (forexample, adequacy of on-street parking and sales taxes) are not. If some part of the total retail

experience is unsatisfactory, consumers may not make a purchase, they may even decide not topatronise a retailer again.

In planning strategy, the retailer must ensure that all strategic elements are in place for each of theconsumer segments they are targeting; with a total retail experience aimed at fulfilling each segment’sexpectations.

Customer Service

Customer service refers to the identifiable, but sometimes intangible, activities undertaken by aretailer in conjunction with the basic goods and services it sells. It has a strong impact on the totalretail experience. Among the factors composing a customer service strategy are store hours, parking,

shopper-friendliness of the store layout, credit acceptance, salespeople, such amenities as giftwrapping, rest rooms, employee politeness, delivery policies, the time shoppers spend in checkoutlines, customer follow-up, and so forth.

Satisfaction with customer service is affected by expectations (based on the type of retailer) and pastexperience, and shopper’s assessment of customer service depends on their perceptions, notnecessarily reality. Different people may evaluate the same service quite differently.

The same person may even rate a retailer’s customer serv ice differently at a different time, or in adifferent location, because of its intangibility, though the service stays constant. Service varies widelyfrom one retailer to the next, and from one shopping channel to the next. The challenge for retailers isto ask shoppers what they expect in the way of service, listen to what they say, and then make everyattempt to satisfy them.

Unfortunately, the customer is not always right. Just as retailers know they can never underestimatethe taste or intelligence of their customers, so too they can never overestimate the propensity of someof their customers to engage in sharp practice. Of course, just as hotels cost into their pricing the factthat some of their customers will steal the towels, so too those retailers whom offer a liberal refundpolicy cost into their pricing the returns. Whereas in good times retail purchase return may be 4-6%, inbad times this increases to 5-8%; and this has an even greater impact because retailers are alreadysuffering from a reduction in sales, margins and profits.

Clearly retailers must think very seriously about the balance of good customer service and excessivepandering to customers.



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Relationship Retailing

Retailers have the best possible motive to engage in relationship retailing, whereby they seek toestablish and maintain long-term bonds with customers, rather than act as if each sales transaction isa completely new encounter. The motive for adopting such relationships is of course that it is moreprofitable for the retailer.


Relationship retailing means concentrating on the total retail experience:

69. Monitoring satisfaction with customer service70. Staying in touch with customers71. The majority of all buying decisions are not made until the consumer is standing in front of

a store shelf, choosing which of many brands to put in the shopping basket72. Customer Respect Perceptions73. Trust in customers74. Stand behind products75. Deal with customer problems

76. Frontline workers empowered to respond properly to a problem77. Provide suitable product guarantees78. Keep commitments to customers79. Sufficient stocks80. Value customer time81. Facilities and service systems convenient and efficient for customers to use82. Employees understand that serving customers supersedes all other priorities83. Communicate with customers respectfully84. Store information helpful85. Advertising truthfulness86. Contact personnel professional

87. Treat all customers with respect, regardless of their appearance, age, race, gender, status,

or size of purchase or account88. Special precautions to minimise discriminatory treatment of certain customers89. Thank customers for their business90. Respect employees91. Ensure that employees are respectfully treated by customers

To be effective in relationship retailing, one should consider two factors:

92. It is harder to make new customers than to make existing ones happy. For a retailer to gain inthe long run, by attracting shoppers, making sales, and earning profits); the customer mustalso gain in the long run, by receiving good value, being treated with respect, and feelwelcomed in the store.

93. The advances in information technology mean that it is now much easier to develop acustomer database with information on shopper’s attributes and past shopping behaviour.On-going customer contact can be better, more frequent, and more focused.

Audit of Provider Concepts by Expert Appraisal:

94. Customisation of product offering. No more one size fits all. Retailers must adopt a morerobust portfolio approach to the market to appeal to the multi-channel consumer mind-set.

95. Market power of the Majors. All retailers must come to terms that the majors are here tostay and that they will continue to dominate almost every national market in the world.

96. Supercentres are here to stay because they are merely the reflection of consumer choice.

97. Speciality Retailers have to develop concepts to both work with supercentres and to offeralternatives to the supercentres.



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98. Department stores will find it difficult to survive the mass retailers and lifestyle specialistsand will need to re-invent themselves.

99. Shopping malls will need to change to maintain their market share.

100. Compressed lifecycles for products, stronger retail concepts, and global brands mean thedays of the large, mass-merchandised specialty chain are over.

101. Experiential retailing concepts will mix context and commerce in the future.

102. E-commerce will act as more of a vehicle for retailing than as the cash register. Themajority of sales will continue to be channel through retail stores.

103. Consumers will embrace new technologies that give them better information and morecontrol over the shopping process.

104. Stores and sales staff will have greater capabilities as retailers adopt technologies to betterutilise retail space and allow greater employee productivity. Over time, some smart storesolutions will displace human resources with technology.

105. M-commerce remains a mainly a B2B (business to business) than B2C (business toconsumer) sales method. The consumer is still attracted to more tangible methods of

purchasing and the store experience.106. Globalisation of retailers will accelerate as national borders disappear and trade is de-

regulated and liberalised.

107. As retailers become more globalised they will seek alternative and more secure sources ofsupply and this will mean that retailers become more involved in manufacturing.

108. Retailers will become brand managers as the search for competitive differentiationaccelerates. This will include more own branding, higher quality own brands and theownership of stand-alone brands.

109. Retailers will Brand-Share by integrating with complimentary retail brands, sharingcustomer bases and leverage location strength through innovative store-within-a-store, orbrand-sharing, partnerships.

110. Retailers will attempt greater Brand Extension and seek to extend their brand into otherconsumer and business markets thereby transcend competitive boundaries

111. Suppliers will strive to become providers of best-in-class categories as they take on anincreasing number of activities that traditionally have been the responsibility of the retailer.

112. As more suppliers get locked out of traditional retail channels, supplier direct to consumerwill become a more viable scenario for the future.

113. In a buyer’s market, where technology is changing the dynamics of the buyer–sellerinterface, the relationship between retailers and consumers will become much moresymmetrical and will favour the consumer.

114. For Retailers and Suppliers alike, survival will mean developing a New Concept of theirbusiness model rather than just trying another redesign.



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Part M.2 : Relationships in Retailing


Retailer must strictly apply the concepts of Value and Relationship so that customers strongly believethat the firm offers good value for the money, and that both customers and channel members want todo business with that retailer.

Consumers demand better value from the shopping experience.


1. Time and budget constrain consumers and they spend less time shopping, make fewer trips,visit fewer stores, and shop more purposefully.

2. Consumers use different retail formats for different needs. Specifically, they split thecommodity shopping trip from the value-added shopping trip.

3. Consumers are more sceptical about price. Under the barrage of sales, price has lost itsmeaning; gimmicks have lost their appeal. To regain consumer confidence, pricing byretailers and manufacturers alike must become clearer, more sensible, and moresophisticated.

Relationship retailing with regard to customers and channel partners, the differences in relationshipbuilding between goods and service retailers, technology and relationships, and ethics andrelationships are considerations which will provide value.

Value & the Value Chain

In many channels of distribution, there are several parties: manufacturer, wholesaler, retailer, andcustomer. These parties are most apt to be satisfied with their interactions when they have similarbeliefs about the value provided and received and agree on the payment for that level of value.

From the perspective of the manufacturer, wholesaler, and retailer, Value is embodied by a series ofactivities and processes, the Value Chain, that provides a certain value for the consumer. It is thetotality of the tangible and intangible product and customer service attributes offered to shoppers. Thelevel of value relates to each retailer’s desire for a fair profit and its market niche (such as discount vs.upscale).Where firms may differ is in rewarding the value each provides and in allocating the activitiesundertaken.

From the customer’s perspective, Value is the perception the shopper has of a value chain. It is thecustomer’s view of all the benefits from a purchase (formed by the total retail experience). Value isbased on the perceived benefits received versus the price paid. It varies by type of shopper. Price-oriented shoppers want low prices, service-oriented shoppers will pay more for superior customerservice, and status-oriented shoppers will pay a lot to patronise prestigious stores.


Customer Surveys of AGDMedia: as an Excel file: Part_M.2

4. Customers always believe they got their money’s worth

5. Customers perceive the level of value provided is the same as the retailer intends.

6. Customer Segments confirm that they receive the desired Value. Value is desired by all

customers; however, it means different things to different customers.



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7. Consumers believe that the retailer’s prices have moved close to competitors. Comparisonshopping for prices is very easily done online and thus prices have moved closer togetherfor different types of retailers.

8. Consumer believe that the Retailer is differentiation and the retailer is not perceived as a“me too” retailer.

9. Consumers believe that there is a specific value/price level for each product offering.10. Consumers believe that the Retailer can command a higher price for the same article by

adding better customer service.

The retail Value Chain represents the total bundle of benefits offered to consumers through a channelof distribution. Consumers are only concerned with the results of a value chain, not the process.

Customer Surveys of AGDMedia: as an Excel file: Part_M.2


11. Store location12. Parking13. Retailer ambience14. Level of customer service15. Products carried16. Brands carried17. Product quality18. In-stock position19. Delivery or shipping20. Prices21. Retailer’s image

Consumer visible Value Chain elements:

22. Display windows23. Store hours24. Sales personnel25. Point-of-sale equipment26. Upscale store ambience27. Plentiful sales personnel28. Shopping carts29. Self-service & self-check-out

Behind the counter Value Chain elements:

30. Store location planning31. Credit processing32. Warehousing

33. Merchandising decisions

There are three aspects of a value-oriented retail strategy:

expected, augmented, and potential



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Audit of Value Chain Attributes by Expert Appraisal:


34. Expected retail strategy (the minimum Value Chain elements a given customer segment

expects from the retailer; failing which, customer dissatisfaction will cause the retailer to losecustomers):a. Store cleanlinessb. Convenient hoursc. Well-informed employeesd. Timely servicee. Popular products in stockf. Parkingg. Returns privileges

35. Augmented retail strategy (extra Value Chain elements that differentiate the retailer fromothers and are the key to continued customer patronage):

h. Exclusive brands

i. Superior salespeople j. Loyalty programsk. Deliveryl. Personal shoppersm. Special servicesn. Valet parking

36. Potential retail strategy (Value Chain elements not yet perfected by the retailer’s competitorsin the same category were the retailer to capitalise on potential features gain a head startover their adversaries):

o. 24/7 store hoursp. Unlimited customer return privilegesq. Full-scale product customisation

r. Instant fulfilment through in-store orders accompanied by free deliverys. In-mall facilitiest. Transportation

Retailers have to avoid the potential pitfalls of a value-oriented retail strategy.

Audit of Value Chain Attributes by Expert Appraisal:


37. Planning value with just a price perspective. Value is tied to two factors, benefits and prices;however most customers expect the retailer to absorb credit card costs even on discount or

low margin products.

38. Providing value-enhancing services that customers do not want and therefore will not payextra.

39. Competing in the wrong value / price segment. Retailers must ensure that their pricing pointsare commensurate with the value offered, and that the value / price position reflect consumerperceptions of the retail segment.

40. The belief that augmented elements alone create value. Retailers may offer a high-endbenefit not available from competitors, however this will not compensate for the unavailabilityof more basic like adequate parking.

41. Paying lip service to customer service. Retailers may believe that the customer is alwaysright; however they sometimes act contrary to this philosophy. This may include having a high



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turnover of sales staff, charging for returned goods that have been opened, and not offerordering of out of stock items.

Value-Oriented Retailing Checklist


42. Defined values from the consumer perspective

43. Clear value / price point

44. Value position which is competitively defensible

45. Channel partners capable of delivering value-enhancing services

46. Distinction between expected and augmented value chain elements

47. Identification of meaningful potential value chain elements

48. Value-oriented approach aimed at distinct market segments49. Consistent value-oriented approach

50. Value-oriented approach effectively communicated to the target market

51. Target market’s clear identification of the retailer’s positioning strategy

52. Retailer’s positioning strategy considers trade-offs in sales versus profits

53. Retailer sets customer satisfaction goals

54. Retailer periodically measure customer satisfaction levels

55. Retailer careful to avoid the pitfalls in value-oriented retailing

56. Retailer always looking out for new opportunities that will create customer value



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Part M.3 : Customer Relationships


Relationship Retailing is the process whereby retailers seek to form and maintain long-term bondswith customers, rather than act as if each sales transaction is a new encounter with them. Forrelationship retailing to work, enduring value-driven relationships are needed with other channelmembers, as well as with customers; developing these is a challenge.

Customer Relationships

Loyal customers are the backbone of a business and in retailing this can have profound effects onprofitability as 30% of a retailer’s customers will represented over 70% of a retailers profits.

In relationship retailing, there are factors to keep in mind:


1. The customer base2. Customer service3. Customer satisfaction4. Loyalty programs5. Defection rates

The Customer Base

Retailers must regularly analyze their customer base in demographic and other terms:


6. Population demographics7. Lifestyle trends8. Attitudes toward and reasons for shopping9. The level of loyalty10. The mix of new versus loyal customers

11. Populations aging

12. Household size13. Population mobility14. Population location & urbanisation15. Working population distribution by gender and age16. Population distribution by social class and income levels17. Immigration and emigration18. Consumer gender roles19. Market segment diversification20. Interest in spending time shopping21. Use of time-saving goods and services22. Consumer demands of retailers

There are various factors that influence shopping behaviour:



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23. More women than men enjoy shopping24. Men shop more quickly than women25. Shopping behaviour of younger men (ages 18 to 34) is more similar to their female

counterparts26. Time constraints27. Consumers time spent during shopping by gender type by type of shopping area

28. Consumers time spent during shopping by gender type by type of retailer29. Purchases by gender type by type of shopping area30. Purchases by gender type by type of retailer

31. Consumers reasons to shop by type of retailera. See and feel the productb. Product availabilityc. Ease in finding productsd. Confidence in productse. Ease of shoppingf. Convenience of the locationg. Priceh. Assortment

i. Quality of merchandise j. Store physical attributesk. Product labelling

Core Customers

It is worth nurturing relationships with some customers rather than with others; these are the retailer’score customers, being their most regular customers. This group of customers need to be identified,tagged and retained.


32. Customers that are the most profitable and the most loyala. Spend more moneyb. Pay their bills promptlyc. Reasonable in their customer service requestsd. Prefer stable, long-term relationships

33. Customers that place the greatest value on what the retailer has to offera. Customers that prefer the retailer’s products b. Customers that prefer the retailer’s customer services c. Customers that prefer the retailer’s special strengths or uniqueness

34. Customers that are worth more to you than the retailer’s competitors a. Customers that warrant extra effort and investmentb. Customers who are worth more to a competitor will eventually defect

The retailer’s desired mix of new versus loyal customers depends on that retailer’s stage in its lifecycle, goals, and resources, and its competitors’ actions.

A mature retailer is more apt to rely on core customers and supplement its revenues with newshoppers. A new retailer faces the dual tasks of attracting shoppers and building a loyal following; itcannot do the latter without the former. If goals are growth-oriented, the customer base must beexpanded by adding stores, increasing advertising, and so on; the challenge is to do this in a way thatdoes not deflect attention from core customers. Although it is more costly to attract new customersthan to serve existing ones, core customers are not cost-free. If competitors try to take away aretailer’s existing customers with price cuts and special promotions, a retailer may feel that it must



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pursue competitors’ customers in the same way. Again, it must be careful not to alienate corecustomers.

Customer Service

Customer service refers to the identifiable, but sometimes intangible, activities undertaken by aretailer in conjunction with the goods and services it sells. Customer service affects the total retailexperience. Consistent with a value chain philosophy, retailers must apply two elements of customerservice: expected customer service is the service level that customers want to receive from anyretailer, such as basic employee courtesy; augmented customer service includes the activities thatenhance the shopping experience and give retailers a competitive advantage.

The attributes of personnel who interact with customers (such as politeness and knowledge), as wellas the number and variety of customer services offered, have a strong effect on the relationshipcreated.

Planning the best customer service strategy can be complex and challenging especially duringeconomically difficult times which is causing retailers to cut costs in many areas of their businesses;

albeit customers still expect the same level of service. Customer service satisfaction has alwaysbeen a key for positive financial results. Businesses must not make customer service investmentsonly to keep pace with growth, they should view their spending as a strategic benefit to bring greatercustomer satisfaction and retention.

Some retailers realise that customer service is better when they utilise employee empowerment,whereby workers have the discretion to do what they believe is necessary, within reason, to satisfythe customer, even if this means bending some rules.

Audit of Employee performance by Expert Appraisal:


35. Employee turnover rates36. High performing employees37. Employees paid commission38. Employee orientation training39. Employee on-going training40. Discretion for employees to make on-the-spot decisions41. Employees perceive themselves as consultants and problem solvers



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Developing a customer service strategy

Fundamental issues for the retailer.


For the retailer, what customer services are expected and what customer services are augmented:

42. The level of customer service which complements the retailer’s image 43. Choices of customer services44. Payment for customer services45. Measurement of customer benefits versus costs46. Termination of customer services

Planning individual customer services


47. Having outlined a broad customer service plan, the retailer then identifies individualcustomer services.

a. Alterationsb. Baby strollers or Baby Changing facilitiesc. Baby-sitting or Children’s Areas d. Beauty salone. Bridal registryf. Complaints and returns handlingg. Credit facilitiesh. Designersi. Dressing rooms

j. Extended store hoursk. Fitting roomsl. Free parkingm. Gift certificatesn. Gift wrappingo. Information servicesp. Installation / Technical servicesq. Layawayr. Mail and phone orderss. Open credit accountt. Option credit accountu. Packaging (gift wrapping)v. Parkingw. Personal shoppersx. Phonesy. Rest roomsz. Restaurantaa. Retailer-sponsored credit cardsbb. Shopping bagscc. Sitting areasdd. Special sales for regular customersee. Storageff. Ticket outletsgg. Trade-inshh. Trial purchasesii. Water fountains



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Customer Satisfaction

Customer satisfaction occurs when the value and customer service provided through a retailingexperience meet or exceed consumer expectations. Only “very satisfied” customers are likely toremain loyal in the long run.

Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_M.348. Retailer customer satisfaction49. Customer satisfaction deficits50. Customer Satisfaction Index rating51. Perceived quality52. Perceived value53. Satisfaction score

54. Consumers not complaining when dissatisfied55. Perception that complaining produces few or no positive results56. Complaining difficult57. Unable to find the staff to whom to complain58. Access to complaints process restricted

59. Complaints procedure too bureaucratic60. Complaint forms to complex

61. Customer feedback62. On-going customer satisfaction surveys63. Customers rating customer services64. Customer services exceed expectations65. Customer services appreciated66. Customer services disliked

Loyalty ProgramsConsumer loyalty programs reward the retailer’s best customers, those with whom it wants long-lasting relationships.


67. Percentage of retailer’s customers participating 68. Structure of loyalty program69. Types of Incentive70. Cash discount on purchases71. Notices of upcoming promotions

72. Special vouchers

73. Coupons for new products74. Referral coupons on goods and services from other vendors75. Gifts with purchases76. Special Events77. Preferred parking78. Personal shopping assistance

79. Privacy issues80. Consumer fatigue with program81. Defection rates



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Channel Relationships

Within a value chain, the members of a distribution channel (manufacturers, wholesalers, andretailers) jointly represent a Value Delivery System, which comprises all the parties that develop,produce, deliver, and sell and service particular goods and services.

The ramifications for retailers include:


82. Each channel member is dependent on the others. When consumers shop with a certainretailer, they often do so because of both the retailer and the products it carries.

83. All value delivery system activities must be enumerated and responsibility assigned forthem.

84. Small retailers may have to use suppliers outside the normal distribution channel to get theproducts they want and gain adequate supplier support. Although large retailers may beable to buy directly from manufacturers, smaller retailers may have to buy throughwholesalers that handle small accounts.

85. A value delivery system is as good as its weakest link. No matter how well a retailerperforms its activities, it will still have unhappy shoppers if suppliers deliver late or do nothonour warranties.

86. The nature of a given value delivery system must be related to target market expectations.

87. Channel member costs and functions are influenced by each party’s role. Long-termcooperation and two-way information flows foster efficiency.

88. Value delivery systems are complex due to the vast product assortment of superstores, themany forms of retailing, and the use of multiple distribution channels by somemanufacturers.

89. Non-store retailing (such as mail-order, phone, and online transactions) requires a different

delivery system than does store retailing.

90. Due to conflicting goals about profit margins, shelf space, and so on, some channelmembers are adversarial—to the detriment of the value delivery system and channelrelationships.

When members of a Value Delivery System forge strong positive channel relationships, they betterserve each other and the final consumer.


91. Traditionally, the relationship between retailer s and suppliers was, at best, arm’s length.

92. The manufacturers’ goal was to move the greatest volume of goods at the highest price.

93. The retailers’ goal was to negotiate the lowest price for the goods.

94. Competitive pressures led to a new paradigm. It focused on a simple idea: make sure theright product at the right price is on the shelf when the customer enters the store, whilemaintaining the lowest possible inventory at all points in the pipeline from suppliers toretailer. This requires cooperation between retailers and upstream suppliers.

95. Category management whereby channel members collaborate to manage products bycategory rather than by individual item. Category management is based on theseprinciples:

a. Retailers listen more to customers and stock what they want.

b. Profitability is improved because inventory matches demand more closely.



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c. By being better focused, each department is more desirable for shoppers.

d. Retail buyers are given more responsibilities and accountability for categoryresults.

e. Retailers and suppliers must share data and be more computerised.

f. Retailers and suppliers must plan together.

Relationship Building: Goods -v- Service Retailers

The consumer interest in services makes it crucial to understand the differences in relationshipbuilding between retailers that market services and those that market goods. This applies to store-based and non-store-based retailers, those offering only goods or services, and those offering goodsand services.

Goods Retailing is defined as the sale of tangible (physical) products, whereas Service Retailinginvolves transactions in which consumers do not purchase or acquire ownership of tangible products.

Some retailers engage in either goods retailing (such as hardware stores) or service retailing (such astravel agencies); others offer a combination of the two (such as stores that rent as well as sellmovies). The latter format is the fastest-growing. For example, many department stores have beautysalons, and many hotels have gift shops, and so on.

Service Retailing encompasses such diverse businesses as personal services, hotels and motels,auto repair and rental, and recreational services. In addition, although several services have not beencommonly considered a part of retailing (such as medical, dental, legal, and educational services),they should be when they entail final consumer sales.

There are three kinds of service retailing:

Rented-goods services, whereby consumers lease and use goods for specified periods oftime. Tangible goods are leased for a fixed time, but ownership is not obtained and the good

must be returned when the rental period is up. Examples are car rentals, carpet cleanerrentals at a supermarket, and video rentals at a convenience store.

Owned-goods services, whereby goods owned by consumers are repaired, improved, ormaintained. In this grouping, the retailer providing the service never owns the good involved.Illustrations include watch repair, lawn care, and an annual air-conditioner tune-up.

Non-goods services, whereby intangible personal services are offered to consumers, whothen experience the services rather than possess them. The seller offers personal expertisefor a specified time in return for a fee; tangible goods are not involved. Some examples arestockbrokers, travel agents, real-estate brokers, and personal trainers.

The terms customer service and service retailing are not interchangeable. Customer service refers to

the activities undertaken in conjunction with the retailer’s main business; they are part of the totalretail experience. Service Retailing refers to situations in which services are sold to consumers.

There are four unique aspects of service retailing that influence relationship building and customerretention.


96. The intangibility of many services makes a consumer’s choice of competitive offeringstougher than with goods.

97. The service provider and his or her services are sometimes inseparable (thereby localisingmarketing efforts).

98. The perishability of many services prevents storage and increases risks.99. The aspect of human nature involved in many services makes them more variable.



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The intangible (and possibly abstract) nature of services makes it harder for a retailer to develop aclear consumer-oriented strategy, particularly because many retailers (such as opticians, repairpeople, and landscapers) start service businesses on the basis of their product expertise. Theinseparability of the service provider and his or her services means that the owner –operator is oftenindispensable and good customer relations are pivotal.

100. Perishability presents a risk that in many cases cannot be overcome. Thus, revenues froman unrented hotel room are forever lost.

101. Variability means that service quality may differ for each shopping experience, store, orservice provider.

Service retailing is much more dependent on personal interactions and word-of-mouth communicationthan is goods retailing:

Relationship marketing benefits the customer, as well as the firm. For services that are

personally important, variable in quality, and/or complex, many customers will desire to be“relationship customers.” Medical, banking, insurance, and hairstyling services illustrate someor all of the significant factors, importance, variability, and complexity, which would causemany customers to desire continuity with the same provider, a proactive service attitude, andcustomised service delivery.

The intangible nature of services makes them difficult for customers to evaluate prior topurchase.

The heterogeneity of labour-intensive services encourages customer loyalty when excellentservice is experienced. Not only does the auto repair firm want to find customers who will beloyal, but customers want to find an auto repair firm that evokes their loyalty.

Knowledge of the customer combined with social rapport built over a series of serviceencounters facilitates the tailoring of service to customer specifications. Relationship

marketing does not apply to every service situation. However, for those services distinguishedby the characteristics discussed here, it is potent.

Ethics & Relationships in Retailing

Ethical challenges fall into three interconnected categories:

Ethics relates to the retailer’s moral principles and values. Social responsibility involves acts benefiting society. Consumerism entails protecting consumer rights.

“Good” behaviour depends not only on the retailer but also on the expectations of the community in

which it does business.



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Ethics

In dealing with their constituencies (customers, the general public, employees, suppliers, competitors,and others), retailers have a moral obligation to act ethically. Furthermore, due to the attention paid tofirms’ behaviour and the high expectations people have today, a failure to be ethical may lead toadverse publicity, lawsuits, the loss of customers, and a lack of self-respect among employees.

When a retailer has a sense of ethics, it acts in a trustworthy, fair, honest, and respectful manner witheach of its constituencies. Executives must articulate to employees and channel partners which kindsof behaviour are acceptable and which are not. The best way to avoid unethical acts is for firms tohave written ethics codes, to distribute them to employees and channel partners, to monitorbehaviour, and to punish poor behaviour, and for managers to be highly ethical in their own conduct.

Often society may deem certain behaviour to be unethical even if laws do not forbid it. Most observerswould agree that such practices as these are unethical (and sometimes illegal, too):


102. Raising prices on scarce products after natural events.103. Not having adequate stock when a sale is advertised.

104. Charging high prices in low-income areas because consumers there do not have thetransportation mobility to shop out of their neighbourhoods.105. Selling alcohol and tobacco products to children.106. Having a salesperson pose as a market researcher when engaged in telemarketing.107. Defaming competitors.108. Selling refurbished merchandise as new.

109. Pressuring employees to push high-profit items to shoppers, even if these items are not thebest products for them.

110. Selling information from a customer database.

111. Offers not clear, honest, and complete.

112. Disparagement of anyone on grounds of race, colour, religion, national origin, gender,

marital status, or age.

113. Contacts which do not disclose the sponsor and the purpose of the contact.114. Competition prizes not advertised in a clear, honest, and complete way.115. Merchandise shipped without receiving customer permission.116. Telemarketers knowingly call a consumer with an unlisted or unpublished phone number.

Social Responsibility

A retailer exhibiting social responsibility acts in the best interests of society, as well as itself. Thechallenge is to balance corporate citizenship with a fair level of profits for shareholders, management,

and employees. Some forms of social responsibility are virtually cost-free, such as having employeesparticipate in community events or disposing of waste products in a more careful way. Some are morecostly, such as making donations to charitable groups or giving away goods and services to a school.

Still others mean going above and beyond the letter of the law, such as having free loanerwheelchairs for persons with disabilities in addition to having legally mandated wheelchairaccessibility to retail premises.

Retailers know that socially responsible acts do not go unnoticed. Though the acts may not stimulateextra profits for firms with weak strategies, they can be a customer inducement for those otherwiseviewed as “me too” entities. It may also be possible to profit from good deeds; a retailer donatesexcess inventory to a charity for the poor, it can take a tax deduction equal to the cost of the goods.



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Consumerism

Consumerism involves the activities of government, business, and other organisations to protectpeople from practices infringing upon their rights as consumers. These actions recognise thatconsumers have basic rights that should be safeguarded.

Retailers and their channel partners need to avoid business practices that violate consumer rights andto do all they can to understand and protect them, for reasons that include the following:


Retail practices are covered by legislation.

117. Consumers are more knowledgeable, price-conscious, and selective than in the past.

118. Large retailers may be viewed as indifferent by consumers. They may not provide enoughpersonal attention for shoppers or may have inadequate control over employees.

119. The use of self-service is increasing, and it can cause frustration for some shoppers.

120. Innovative technology is unsettling to many consumers, who must learn new shoppingbehaviour.

121. Retailers are in direct customer contact, so they are often blamed for and asked to resolveproblems caused by manufacturers (such as defective products).

To avoid customer relations problems, retailers must devised programs to protect consumer rightswithout waiting for government or consumer pressure to do so.

Retailers should enacted programs to test merchandise for specific attributes:

122. Value123. Quality124. Misrepresentation of contents125. Safety126. Durability

Other consumerism activities should be undertaken by the retailer:

127. Setting clear procedures for handling customer complaints128. Sponsoring consumer education programs129. Training personnel to interact properly with customer

Summary:

130. Understand what “value” really means and highlight its pivotal role in building andsustaining relationships.

a. Undertake activities and processes to provide a given level of value for the consumer.b. Consumers perceive the value offered, based on the perceived benefits received

versus the prices paid.c. Perceived value varies by type of shopper.d. Value chain represents the total bundle of benefits offered by a channel of

distribution.e. Value chain comprises store location, ambience, customer service, the

products/brands carried, product quality, the in-stock position, shipping, prices, theretailer’s image, and so forth.

f. Elements of a retail value chain visible to shoppers.g. Expected retail strategy which represents the minimum value chain elements a given

customer segment would expect from the retailer.h. Augmented retail strategy which includes the extra elements that differentiate the

retailer.i. Potential retail strategy includes value chain elements not yet perfected in the

retailer’s industry category.



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131. Understand both customer relationships and channel relationships which may benurtured.a. Enduring relationships with other channel members, as well as with customers.b. Realisation that loyal customers are the backbone of their business.c. Applying relationship retailing with consumers which identify factors which should be

considered:

i. the customer baseii. customer serviceiii. customer satisfactioniv. loyalty programsv. defection rates.

d. Which shoppers are more worth nurturing because they are a retailer’s core customers. e. The attributes of personnel who interact with customersf. Number and variety of customer services offered.g. Improved customer service by empowering personnelh. Implementation of specific tactics as to credit, delivery, and so forth.i. Customer satisfaction because the value and customer service provided in a retail

experience meet or exceed expectations.

j. Loyalty programs which reward the best customers with whom a retailer wants to developlong-lasting relationships.

k. Sound value-driven retail strategy.l. Study of defections, how many customers are lost, and why they no longer patronise the

store.m. Members of a distribution channel jointly representing the value delivery system.n. Distribution activities which are enumerated and responsibility assigned.o. Category management.

132. Differences in relationship building between goods and service retailers.a. Focus on selling tangible products.b. Service retailing.

i. rented-goods services

ii. owned-goods servicesiii. non-goods services

133. Impact of technology on relationships in retailing.a. Improved information flow between the retailer and suppliersb. Improved information flow between the retailer and customersc. Faster, smoother transactionsd. Electronic banking servicese. Nature of supplier/ retailer/customer interactions

134. Interplay between the retailer’s ethical performance and relationships in retailing.a. Ethics of the retailer’s moral principles and valuesb. Social responsibility

c. Consumerismd. Act in a trustworthy, fair, honest, and respectful way.e. Avoids unethical behaviour through written ethics codes, communicate them to

employees, monitor and punish poor behaviour, and has ethical executivesf. Recycling and conservation programsg. Consumer rights to safety, to be informed, to choose, and to be heard.



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Part M.4 : Planning Aspects of Service Retailing


Consumers in developed countries spend most of their after-tax income on such services as travel,recreation, personal care, education, medical care, and housing. In developed countries between 70-80% of the labour force works in services.

During the past 30 years, the prices of services have risen more than the prices of many goodsbecause manufacturing has migrated to low cost countries and of course services incur the locallabour costs. In addition, technological advances, automation has substantially reducedmanufacturing labour costs, but many services remain labour-intensive because of their personalnature.

Many traditional goods retailers are now turning their attention to the provision of services and thehistoric dividing lines between goods and services retailers is now very blurred.

Successful service retailing

The inter-personal abilities required in service retailing are usually quite distinct from those in goodsretailing:


1. Specific retailer skills.

2. Difficulties in changing and transferring their skills to another area.

3. Service operators may be required to have licences or certification to run their businessesdepending on national regulations

4. Those employed in service businesses must enjoy their jobs and have the aptitude for them.

5. Service retailers can operate on lower overall investments and lower annual revenues thancan goods retailers.

6. Costs can be held down in service businesses whereas a goods retailer needs a goodproduct assortment and inventory on hand, which may be costly and require storage facilities.

7. Considerations of time commitment of a service retailer differ by type of business.

8. More service retailers fall into the high time-investment category.

Performance of service retailers


Service tangibility can be increased:

9. By stressing service provider reliability10. Promoting a continuous image11. Describing specific results12. Offering warranties

Demand and supply can be better matched:

13. By offering similar services to market segments with different demand patterns14. New services with demand patterns that are countercyclical from existing services15. New services that complement existing ones

16. Special deals during nonpeak times17. New services not subject to existing capacity constraints



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Standardising services:

18. Reduces their variability19. Makes it easier to set prices20. Improves efficiency

Services can be standardised:

21. By clearly defining each of the tasks involved22. Determining the minimum and maximum times needed to complete each task23. Selecting the best order in which to do tasks24. Noting the optimum time and quality of the entire service

Service retailers may be able to make services more efficient:

25. By automating them and substituting machinery for labour.26. Optimum location of a service centres27. Use of mobile customer service facilities

Pricing decisions can be improved:

28. Communicate value through their pricing29. Satisfaction-based pricing recognises and reduces customer perceptions of uncertainty that

service intangibility magnifies30. Service guarantees31. Benefit-driven pricing32. Flat-rate pricing.33. Relationship pricing which encourages long-term relationships with valuable customers

through long-term contracts and price bundling34. Cost leadership techniques35. Negotiated pricing where the retailer works out a one-time pricing arrangements with

individual customers because of a unique or complex service36. Contingency pricing where the retailer does not get paid until after the service is performed

and payment is contingent on the service’s being satisfactory.



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Part N.1 : Supplemental Customer Survey Data


This section provides a battery of supplemental Customer Surveys.

Survey Respondent Demographics

Survey data is provided for the total consumer demographic. However the survey data can beextracted for particular demographics. The Filtering of the demographic is done for individualdemographic characteristics or for one or more demographic characteristics.

Customer Surveys of AGDMedia: as an Excel file: Part_N.1.1

1. Gender

2. Age

a. Under 13

b. 13-17

c. 18-25

d. 26-34

e. 35-54

f. 55-64

g. 65 or over

3. Marital status

a. Single, never marriedb. Married without children

c. Married with children

d. Divorced

e. Separated

f. Widowed

g. Living with partner

4. Highest level of education you have completed

a. Less than High School

b. High School

c. Some Colleged. 2-year College Degree

e. 4-year College Degree

f. Master’s Degree

g. Doctoral Degree

h. Professional Degree

5. Are there any children in at home, if so, what are their agesa. Under 10b. 10 to 15c. 16 to 19d. No, no children at home

6. Indicate the number of children in your household under the age of 18.



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a. 0b. 1c. 2d. 3e. 4 or moref. How many Boys

g. How many Girls

7. Including yourself, how many persons are in your household?a. 1b. 2c. 3d. 4e. 5 or more

8. What type of housing to you live ina. Apartmentb. Condominiumc. Mobile/Trailer

d. Single unit homee. Other

9. Do youa. Ownb. Rent your homec. Other

10. Which of the following best describes the area you live in?a. Inner city / downtownb. Urbanc. Suburband. Rural

11. What is your total yearly household income, before taxesa. Under $30,000b. $30-$39,999c. $40-$49,999d. $50-$59,999e. $60-$69,999f. $70-$79,999g. $80-$89,999h. $90-$99,999i. $100-$150,000

j. Over $150,00

12. Are you currently registered to votea. Rather not sayb. Noc. Yesd. Not applicable

13. What is your current work status?a. Work outside home full timeb. Work outside home part timec. Do not work outside home

14. In what type of organisation do you work?

15. Which of the following best describes your job role?a. Upper Management



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b. Middle Managementc. Junior Managementd. Administrative Staffe. Support or Functional Stafff. Student

16. The organisation you work for comes under which of the following categories?a. Public sector (e.g. government)b. Private sector (e.g. most businesses and individuals)c. Not-for-profit sectord. Do not knowe. Other

17. Can you estimate your organisation's total budget for this year?a. less than $1 million (US)b. $1 million to $10 million (US)c. $10 million to $100 million (US)d. $100 million to $500 million (US)e. $500 million to $1 billion (US)

f. over $1 billion (US)g. Do not know or Rather not say

18. During an average week, most of your professional correspondence (postal mail or e-mail) iswith which of the following:

a. Public sector (e.g. government)b. Private sector (e.g. most businesses and individuals)c. Not-for-profit sectord. Do not knowe. Other

19. Indicate which of the following are sources of revenue for your organisation:a. Sales to individuals or private organisations (but not contracts)

b. Sale to government organisations (but not contracts)c. Contracts to do work for private organisationsd. Contracts to do work for government organisationse. Contracts to do work for other organisationsf. Government appropriationsg. User charges and feesh. Donationsi. Don't know or Other

20. What is the present occupation of the head of household?a. Professional/technicalb. Manager/official/proprietorc. Clerical

d. Salese. Crafts/tradesf. Operatorg. Manual workerh. Service workeri. Retired

j. Homemakerk. Studentl. Unemployed or Other



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Brand Survey



1. Attitudes Towards Discount / Store Own-Brand Products

2. Brand Availability -v- Price Question3. Perceptions of Currently Imported Brands4. Perceptions of Currently Store Brands5. Brand Price Sensitivity6. Brand Product Awareness7. Product Awareness of Store Brands8. Brand Purchasing Criteria: Current9. Purchasing Criteria: Current of Store Brands10. Brand Purchasing Criteria: Future Trends11. Purchasing Criteria: Future Trends of Store Brands12. Quality -v- Price Question13. Reaction to Advertising & Sales Promotion of Brands14. Reaction to Advertising & Sales Promotion of Store Brands

15. Reaction to P.O.S. & Merchandising of Brands16. Satisfaction with Existing Branded Outlets17. Satisfaction with Existing Foreign Brand Products18. Satisfaction with Existing Brands Products19. Satisfaction with Existing Brands Retailers20. Satisfaction with Foreign Brand Product Design21. Satisfaction with Foreign Brand Product Packaging22. Satisfaction with Foreign Brand Product Packaging Design23. Satisfaction with Foreign Brand Product Quality24. Satisfaction with Product Brands Availability25. Satisfaction with Product Brands Design26. Satisfaction with Product Brands Packaging27. Satisfaction with Product Brands Packaging Design

28. Satisfaction with Product Brands Quality29. Satisfaction with Retailers Brands Stock Levels30. Willingness to Purchase Foreign Brands31. Willingness to Purchase Store Brands

32. Brands Advertising Posture: Branch/Outlet Level33. Brands Advertising Posture: Company Level34. Brands Promotional Activity: Branch/Outlet Level35. Brands Promotional Activity: Company Level



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Retail Store Brand Personality



Retail store personality variables:

1. Select the answer that best indicates the way you would describe this Retailer’s Brand.a. Good selectionb. High pricesc. High qualityd. High fashione. Good servicef. Easy to shop ing. Friendlyh. Good sales and promotionsi. Sophisticated

j. Traditionalk. Different

l. Take chancesm. Confidentn. Creativeo. Sociablep. Stands out in the crowdq. Simplified lifestyle

Comparative Retail Store Evaluation

Battery of questions focusing on merchandise quality, value, layout, convenience. Comparisonsacross 15 competitive retailers within the catchment area.



Considering the 15 stores, which store:1. consistently provides the best values for your money?2. is most likely to have what you want in stock?3. has the best advertised sales and specials?4. has the best quality merchandise?5. maintains the best everyday price for most merchandise?6. has the lowest prices overall?7. provides the least value for your money?8. has the highest prices overall?9. has the poorest quality merchandise?10. has the most convenient store layout for shopping?11. has the widest selection of national brand merchandise?12. offers the lowest everyday prices on household essentials such as cleaning supplies, paper

goods, and health and beauty aids?13. has the best cafeteria?



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Retail Store Evaluation



Retail store customer service and merchandise evaluation survey:1. This store has modern-looking equipment and fixtures.2. The physical facilities at this store are visually appealing.3. Materials associated with this store's service (such as shopping bags, catalogues, or

statements) are visually appealing.4. This store has clean, attractive, and convenient public areas (restrooms, fitting rooms).5. The store layout at this store makes it easy for customers to find what they need.6. The store layout at this store makes it easy for customers to move around the store.7. When this store promises to do something by a certain time, it will do so.8. This store provides its services at the time it promises to do so.9. This store performs the service right the first time.10. This store has merchandise available when the customers want it.11. This store insists on error-free sales transactions and records.

12. Employees in this store have the knowledge to answer customers' questions.13. The behaviour of employees in this store instils confidence in customers.14. Customers feel safe in their transactions with this store.15. Employees in this store give prompt service to customers.16. Employees in this store tell customers exactly when services will be performed.17. Employees in this store are never too busy to respond to customer's requests.18. This store gives customers individual attention.19. Employees in this store are consistently courteous with customers.20. Employees of this store treat customers courteously on the telephone.21. This store willingly handles returns and exchanges.22. When a customer has a problem, this store shows a sincere interest in solving it.23. Employees of this store are able to handle customer complaints directly and immediately.24. This store offers high quality merchandise.

25. This store provides plenty of convenient parking for customers.26. This store has operating hours convenient to all their customers.27. This store accepts most major credit cards.28. This store offers its own credit card.

Customer Surveys


1. Stores are conveniently located.

2. Store hours are convenient for my shopping needs.3. Store atmosphere and decor are appealing.

4. A good selection of products was present.

5. Store has the best prices in the area.

6. Merchandise sold is of the highest quality.

7. The merchandise sold is a good value for the money.

8. Merchandise displays are attractive.

9. Advertised merchandise was in stock.

10. Overall, I am very satisfied with the store.

11. I am very satisfied with the price I paid for what I bought.

12. I am very satisfied with the merchandise I bought.



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13. In thinking about your most recent experience with the retailer, was the quality of customer

service you received:

a. Very Poor

b. Somewhat Unsatisfactory

c. About Average

d. Very Satisfactorye. Superior

14. Characteristics of the sales person:

a. Poor

b. Fair

c. Good

d. Very Good

e. Excellent

f. Knowledge of the product

g. Courteousness

h. Willingness to help

i. Efficiency/quickness

j. Ability to complete transaction

15. How satisfied are you with the product(s) regarding the following items?

a. Overall quality

b. Value



e. Usage experience

f. After purchase service (warranty, repair, customer service etc.)


17. Overall, how satisfied are you with the product(s)?

a. Very Unsatisfied

b. Unsatisfied

c. Somewhat Satisfied

d. Very Satisfied

e. Extremely Satisfied

18. Compared to other product(s) in this category that are available, would you say that the

product(s) is/are:

a. Much betterb. Somewhat better

c. About the same

d. Somewhat worse

e. Much worse

19. Will you use/purchase the product(s) again?

a. Definitely will

b. Probably will






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20. How likely are you to recommend the product(s) to others?

a. Definitely will recommend

b. Probably will recommend

c. Not sure

d. Probably will not recommend

e. Definitely will not recommend

21. Based on your experience with the product(s), how likely are you to buy again?

a. Very Unlikely

b. Unlikely

c. Somewhat Unlikely

d. Very Likely

e. Extremely Likely

22. If you contacted the company‘s customer service, were all problems resolved to your

complete satisfaction?

23. In evaluating your most recent customer service experience, was the quality of service you

received:

a. Very poor

b. Somewhat unsatisfactory

c. About average

d. Very satisfactory

e. Superior

Particular aspects of the service experience:

24. The process of getting your problem resolved was:

a. Very poorb. Somewhat unsatisfactory

c. About average

d. Very satisfactory

e. Superior

Particular aspects of the problem solving process:

25. The customer service representative was very courteous:

a. Strongly disagree

b. Somewhat disagree

c. Neutral

d. Somewhat agreee. Strongly agree

26. Which of the following qualities of the service representative stood out (as being superior)?

a. Patient

b. Enthusiastic

c. Listened carefully

d. Friendly

e. Responsive

f. Other

27. What qualities of the customer service representative irked you?a. Not patient



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b. Not enthusiastic

c. Didn't listen carefully

d. Unfriendly

e. Unresponsive

f. Other

g. No qualities irked me

28. The customer service representative handled my call quickly:



c. Neutral

d. Somewhat agree

e. Strongly agree

29. What would best describe your experience, when you called?

a. Kept me waiting on hold

b. Had to explain several times

c. Didn't know how to handle problem

d. Had to ask others

e. Spoke slowly

f. Other

g. No improvement needed

30. The customer service representative was very knowledgeable.



c. Neutral

d. Somewhat agree

e. Strongly agree

31. The Customer Service:a. Gave me the wrong informationb. Didn't understand the questionc. Gave unclear answersd. Couldn't solve probleme. Disorganisedf. Otherg. No improvement needed

32. The waiting time for having my question addressed was satisfactory.

a. Strongly disagreeb. Somewhat disagree

c. Neutral

d. Somewhat agree

e. Strongly agree

33. My phone call was quickly transferred to the person who could best assist me:



c. Neutral

d. Somewhat agree

e. Strongly agree



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34. Over the next 12 months, how likely are you to replace your product with another (product or

brand)?

a. Certain

b. High chance

c. Equal chance

d. Low chancee. Never

35. In your most recent customer service experience, how did you contact the representative?

a. In Person

b. By Telephone

c. Internet

d. Through a Dealer/Retailer/Broker

e. Other

f. Sufficient information was available on the internet to solve my problem.

36. About how long did you have to wait before speaking to a representative?

a. I was taken care of immediately

b. Within 3 minutes

c. 3-5 minutes

d. 5-10 minutes

e. More than 10 minutes

37. Did the service representative:

a. Quickly identify the problem

b. Appear knowledgeable and competent

c. Help you understand the cause and the solution to the problem

d. Handle issues with courtesy and professionalism

38. About how long did it take to get this problem resolved?

a. Immediate Resolution

b. Less than a day

c. Between 2 and 3 days

d. Between 3 and 5 days

e. More than a week

f. The problem is still not resolved

39. How many times did you have to contact customer service before the problem was corrected?

a. Once

b. Twicec. Three Times

d. More than Three times

40. Overall, how satisfied are you with the customer service experience?

41. If you were less than totally satisfied, what could have been done to serve you better?



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Customer Satisfaction


Net Promoter Score (NPS) TYPE survey. The *Net Promoter Score is a common test of

customer satisfaction.

The score is calculated by sorting respondents into Promoters (High), Neutrals (Middle) andDetractors (Low), then subtracting the percentage of respondents that are Detractors from thepercentage that are Promoters. This survey calculates a Net Promoter Score type for twoinstances: the purchase of a specific Brand Model and overall feelings of the Brand. Inaddition, it collects other feedback and demographic information for future segmentation.

*The Net Promoter Score is a registered trademark of Bain & Company and Satmetrix.

1. Considering only your most recent purchase experience, how likely would you be to

recommend the purchase of the product(s) to a friend or colleague? (0 is not at all likely, 10 is

extremely likely)

2. Considering your complete experience with the company, how likely would you be to

recommend the company to a friend or colleague? (0 is not at all likely, 10 is extremely

likely)

3. What can the company do in the future to earn a score of 9 or 10?

4. What did the company do really well?

5. What can the company do to be even better?

Customer Voices


1. There would be something missing in my life if the store / brand did not exist.

2. I have the feeling that I really understand the store / brand.

3. I have feelings for the store / brand that I do not have for other companies/brands.

4. The store / brand has always been good for me.

5. The store / brand and I have a lot in common.

6. The store / brand reminds me of things I have done and places where I have been.

7. The store / brand can always count on me.

8. I trust the store / brand

9. I am satisfied with the quality of products of the store.

10. The quality of the products of the store is important to me.

11. I am satisfied with the value for money I get from store.

12. The value for money I get from store is important for me.

13. I am satisfied with the reliability of the products of the store.

14. The reliability of products of the store is important to me.

15. I am satisfied with the product guarantee from the store.

16. The product guarantees at the store is important to me.

17. I am satisfied with the expertise of the store service staff.

18. The expertise of the store service staff is important to me

19. I am satisfied with the fast response of the store service staff

20. The fast response of the store service staff is important to me.

21. The store sales people are friendly.22. The friendliness of the store sales people is important to me.



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23. The expertise of the store sales people is high.

24. The expertise of the store sales people is important to me.

25. The store understands me and my needs.

26. Are you likely to provide enthusiastic referrals for store?

27. Do you have any comments suggestions for store?

Product Satisfaction and Customer Retention

This Survey is on specific Product Items. A list of the available product items will be found in the CoreDatabase:


1. How often do you typically use the product?

a. Once a year

b. Daily

c. Weeklyd. Once a month

e. Every 2-3 months

f. 2-3 times a year less often

g. Do not use

2. How did your product(s) perform?

a. Miserably

b. Somewhat Satisfactory

c. Very Satisfactory

d. Delightfully

3. How important was performance on these attributes?

a. Overall quality

b. Value



e. Usage experience

f. After purchase service (warranty, repair, customer service etc.)

4. Overall, how satisfied were you with the new product(s)?

a. Not at all satisfied

b. Somewhat Satisfiedc. Satisfied

d. Very Satisfied

e. Delighted

5. Have you ever contacted customer service?

6. If you contacted customer service, have all problems been resolved to your complete

satisfaction?

a. Yes, by the company or its representatives.

b. Yes, by me or someone outside the company

c. No, the problem was not resolved

7. Based on your awareness of the product(s) / service(s), is it better, the same, or worse than

other brands?



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a. Much Better

b. Better

c. About the same

d. Worse

e. Much Worse

8. How could the product(s) / service(s) do better?

9. Based on your experience with the product(s), how likely are you to buy the product(s) again?

a. Definitely will

b. Probably will




10. Based on your experience with the product(s), would you recommend this product to a friend?

a. Definitely will

b. Probably will




Customer Satisfaction: Product



1. Purchase Satisfaction: How much do you agree or disagree with the following statements

about the product(s)?

i. Strongly Disagree

ii. Disagree

iii. Somewhat Disagree

iv. Neither Agree nor Disagree

v. Somewhat Agree

vi. Agree

vii. Agree Stronglya. This is one of the best products I could have bought.

b. This product is exactly what I need.

c. This product hasn’t worked out as well as I thought it would. d. I am satisfied with my decision to buy this product.

e. Sometimes I have mixed feelings about keeping the product(s).

f. My choice to buy this product was a wise one.

g. If I could do it over again, I’d buy a different make/brand.

h. I have truly enjoyed this product.

i. I feel bad about my decision to buy this product.

j. I am not happy that I bought this product.

k. Owning this product has been a good experience.

l. I’m sure it was the right thing to buy this product.



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2. How much do you agree or disagree with the following statements about the product(s)?

i. Strongly Disagree

ii. Disagree

iii. Somewhat Disagree

iv. Neither Agree nor Disagree

v. Somewhat Agreevi. Agree

vii. Agree Strongly

a. I am pretty satisfied with the product(s) I chose.

b. I am pretty certain that I made the best decision about which product(s) to select.

c. I felt confused while shopping for the product(s).

d. I am pretty sure that one of the other brands of the product(s) that I did not

choose would have been equal to or better than the brand I chose to satisfy my

desires and expectations.

e. It is likely that the brand of the product(s) I chose is better than the other brands

of the product(s) I am currently familiar with.

f. If I could do it over again, I’d buy a different make/brand.

Product Ownership



1. Did you receive this product as a gift?2. How did you first discover this product was available for purchase?

a. Advertising - TV, newspaper, magazine, radio

b. Ad in another product - brochure, previewc. Friends/Family/Someone told me about itd. Read a magazine article/reviewe. Saw it in the store/Browsing in storef. Through the mail/mail catalogueg. Other

3. What is the one reason you purchased this product?a. Someone asked for itb. Makes a great giftc. Own other (products) and wanted mored. It is a classice. Good for the whole family

f. Saw it in the storeg. I like the producth. Price/Good valuei. Other

4. What was the name of the store where this product was bought?5. What price did you pay for this product?6. How many Company products do you own?7. How many similar products of any brand do you own?8. How many Company products have you bought in the past 12 months?9. How many similar products of any brand have you bought in the past 12 months?



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New Product Concept Evaluation and Pricing Study

This Survey is on specific New Product Items. A list of the available new product items will be found inthe Core Database:


This survey is about the Company’s new brand(s) / product(s) / service(s) as described:

1. How would you best describe your familiarity with a brand / product / service like thatdescribed above?

a. I was not aware of such a New product/serviceb. Only generally awarec. Have investigated or researched such productsd. Have demonstrated a product like thise. Have purchased or regularly use a product like this

2. About how many units of this new product would you buy over the next year at each pricepoint listed below (FMV Fair Market Value)?

a. FMV + 30%

b. FMV + 20%c. FMV + 10%d. FMV + 5%e. FMV = Estimated Fair Market Value = Recommended Retail Pricef. FMV - 5%g. FMV - 10%h. FMV - 20%i. FMV - 30%

3. About what would you expect to pay for the new product(s) / service(s) like the onedescribed? (Nearest dollar)

4. At what price would this new product begin to look inexpensive or cheap?


5. At what price would this new product begin to look Fair Value?a. FMV + 30%b. FMV + 20%

c. FMV + 10%d. FMV + 5%e. Estimated FMVf. FMV - 5%g. FMV - 10%h. FMV - 20%i. FMV - 30%

6. At what price would the product begin to look too expensive?a. FMV + 30%b. FMV + 20%c. FMV + 10%d. FMV + 5%

e. Estimated FMVf. FMV - 5%



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g. FMV - 10%h. FMV - 20%i. FMV - 30%

7. At what price would the product begin to look so expensive that you would never considerbuying it?


8. If you knew that the average price of similar New brand / product / service was [Price], wouldyou expect to pay more or less to buy the described new brand / product / service?

a. (20-30%) more

b. (5-10%) morec. No more, no lessd. (5-10%) lesse. (20-30%) less

9. If you are a current user of a similar brand / product / service, how long have you used thebrand / product / service?

a. Under 1 monthb. 1-6 monthsc. 6 months to 1 yeard. 1-2 yearse. 3 years or moref. Do not currently use

10. How often could you find a use for the described new brand / product / service?a. Once a week or more oftenb. 2-3 times a monthc. Once a monthd. Every 2-3 monthse. 2-3 times a yearf. Once a yearg. Would not use

11. Based on the description, how interested would you be in buying the described new brand /product / service; if priced within your budget?

a. Not at all interested

b. Not very interestedc. Not sured. Somewhat interestede. Very interested

12. What is it that you like most about the described new brand / product / service?

13. What do you like least about the described new brand / product / service?

14. Which of the following best describes your need for this new brand / product / service?a. I really need this product because nothing else can solve this problem.b. This is a minor improvement over what I currently use.c. Looks okay but is about the same as what I'm using now.

d. My current product would serve me better.e. I am not at all interested in this product.



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Product Concept Test



This survey is about the Company’s brand(s) / product(s) / service(s) as described here:

1. How would you best describe your familiarity with a brand / product / service like thatdescribed above?

a. I was not aware of such a product/serviceb. Only generally awarec. Have investigated or researched such productsd. Have demonstrated a product like thise. Have purchased or regularly use a product like this

2. Having been told / seen a list of features that are part of the product: How important is eachfeature to you?

a. Not At All Importantb. Extremely Important

3. Rank the features in order of importance:

4. How favourable is your overall reaction to the Product/Service?a. Poorb. Fairc. Goodd. Very good

e. Excellent

5. What is it that you like most about the product(s)?

6. What do you like least about the product(s)?

7. Based on the product description, how interested would you be in buying this product if itwere within your budget?

a. Not at all interestedb. Not very interestedc. Not sured. Somewhat interestede. Extremely interested

8. About what would you expect to pay for the product(s)?

9. How often do you / would you use product(s) in this category?a. Once a week or more oftenb. 2-3 times a monthc. Once a monthd. Every 2-3 monthse. 2-3 times a yearf. Once a year or lessg. Do not use



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Product Survey



1. Have you ever purchased the product(s) from the retailer?

2. Overall, how would you rate the retailer?

a. Excellentb. Goodc. Averaged. Poore. Terrible

3. How satisfied are you with the service from the retailer?a. Extremely satisfied

b. Very satisfiedc. Neutrald. Very dissatisfiede. Extremely dissatisfied

4. Would you recommend the retailer to a friend? If not, why not?

5. For your NEXT product purchase, how likely are you to purchase from the retailer?

a. Very likelyb. Somewhat likelyc. Not sured. Somewhat unlikelye. Very unlikely

6. Which of the following modes did you use for your last purchase of the product(s)?a. Storeb. Mail orderc. Internetd. Over the phonee. Other

7. What are the THREE main reasons you didn't purchase the product(s) from the retailer?

8. If you could change something about the retailer what would it be?

9. Are there any other comments you have for the retailer?

10. How did you first discover this product was available for purchase?

a. Advertising - TV, newspaper, magazine, radio

b. Ad in another product(s) - brochure, preview

c. Friends/Family/Someone told me about it

d. Read a magazine article/review

e. Saw it in the store/Browsing in store

f. Through the mail/mail catalogue

g. Other

11. What is the one reason you purchased this product?

a. Someone asked for it

b. Own other products and wanted more



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c. It is familiar

d. Good for the whole family

e. Saw it in the store

f. I like the product(s)

g. It was on sale

h. Other

12. Which store did you purchase this product from?

13. How much did you pay for this product?

14. How many total products do you own?

15. How many total products of any brand do you own?

16. How many total products have you purchased in the past 12 months?

17. How many total products of any brand have you purchased in the past 12 months?

18. If you do not have all of your service work done at this company, tell us why:

a. Location

b. Quality of servicec. Price

d. Parts not available

e. Treatment by personnel

f. Cannot get work done quickly enough

g. Service Department hours

h. Length of time to get service at companies

i. Time it takes to get repair order written up

j. Other

19. Have you returned to this company for any type of service during the past 12 months?

a. Yesb. No

c. Not sure

20. For your most recent visit to this company, what type of service did you have done?

a. Routine maintenance

b. Repairs

c. Service repairs you paid for

d. Warranty-covered repairs

e. Other

21. Overall, how satisfied are you with this service experience?

a. Very satisfied

b. Satisfied

c. Neutral

d. Dissatisfied

e. Very Dissatisfied

22. Did you have any concerns with the company’s handling of this service visit?

a. Yes

b. No

23. Did you let the company know about your concern(s)?

a. Yes

b. No



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24. Was your concern(s) resolved?

a. Yes

b. No

25. How satisfied were you with the action taken by the company to address your concern(s)?

a. Very satisfied

b. Satisfied

c. Neutral

d. Dissatisfied


Product Purchases



1. How often do you buy the product(s)?

a. Once per week or more often

b. 2 to 3 times per month

c. Once per month

d. Once every 2-3 months

e. Once or twice a year

f. Less than once a year

g. Not sure

2. How likely are you to buy the product(s) in the future?a. Very Unlikely

b. Somewhat Unlikely

c. Not sure

d. Somewhat likely

e. Very likely

3. Over all, how satisfied are you with the product(s)

a. Very satisfied

b. Somewhat satisfied

c. Neutral

d. Somewhat dissatisfied

e. Very dissatisfied

4. What are some aspects of the product(s) that can be improved?

5. Based on your experience, how does the product(s) compare with other brand product?

a. the product(s) is better

b. About the same

c. the product(s) is worst

d. Not sure

6. How often do you typically use the product(s)?

a. Dailyb. Weekly



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c. Less than monthly

d. Do not use

e. Not sure

7. Where do you primarily use the product(s)?

a. At homeb. At the office

c. Another location

d. Do not use it

8. How frequently are you using the product(s) as compared to a month ago?

a. More frequently

b. About the same

c. Less

d. Not sure

9. Do you wait for the product(s) to go on sale to purchase it?

10. Do you typically read the back and side panel of the products package?

a. Yes

b. No

c. Don't remember

11. How familiar are you with the product(s)

a. Use it on a regular basis

b. Use it sporadically

c. Heard of it but never used it

d. Never heard of it

12. What other brands of product(s) in this category have you heard of or used before?

a. Brand A

b. Brand B

c. Brandn

d. Don't know

e. None or Other

13. Which of the following attributes enticed you to try the product(s) initially?

a. Looks good

b. Easy to use/convenient

c. Price Valued. Solves Problem

e. Readily available

f. Best quality

g. Good selection

h. Just what I need

i. Advertising

j. Not sure or Other



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Customers’ Electrical / Electronic Product Purchases

This is a Differential Analysis Survey.


Customer Surveys as an Excel file: Part_N.1.16

1. Approximately how many times did you shop for electrical or electronic products in the past

year?

2. Indicate the approximate total amount your family spent on electrical or electronic products

within the last year.

a. Less than $300

b. $300 - $499

c. $500 - $799

d. $800 - $999

e. $1,000 - $2,499

f. More than $2,500g. Don't know/Not sure

3. During the past year, have you or a member of your family purchased a major electrical or

electronic product?

4. If yes, what item was purchased?

a. TV (priced more than $800)

b. TV (priced between $400 and $799)

c. TV (priced less than $400)

d. DVD Recorder / Home cinema

e. Home Computer

f. Household White Goods

5. What was the total amount spent on the item(s)?

6. If you purchased accessories, how much did you pay for these items?

7. While deciding to purchase the products:

a. How many phone calls were made to retailers for information about the product?

b. How many visits did you make to different retailers?

8. The total number of hours spent inside retail stores while making this decision?

9. How many brands or individual products did you examine in the different retail stores?

10. The item was purchased:

a. as a gift for someone not in your household.

b. as a gift for someone in your household.

c. to be used mostly by other members of your household.

d. to be used mostly by yourself.

e. Other

11. How many times have you purchased items in this product category in the past 10 years?

a. 0

b. 1

c. 2

d. 3-4

e. More than 5 times

f. Don't know/Not sure



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12. Which of the following have you purchased most recently?

a. Microwaves

b. Audio/car stereo/radios

c. Calculators

d. Video / Computer games

e. Computerf. Phones

g. TVs

h. DVDs

i. Cameras

j. Household white goods

k. Other

13. Approximately how many times did you shop for electronic products in the past year?

14. Indicate the approximate total amount your family spent on electronic product within the last

year.

a. Less than $300

b. $300 - $499

c. $500 - $799

d. $800 - $999

e. $1,000 - $2,499

f. More than $2,500

g. Can't say

15. During the past year, have you or a member of your family purchased a major home

appliance or white good product?

16. How much did you pay for the item(s)?

17. If you purchased accessories, how much did you pay for these items?

18. How many phone calls were made to retailers while deciding to purchase this product?

19. How many times did you visit the different retail stores?

20. The total number of hours spent inside retail stores while making this decision?

21. How many brands or individual products did you examine in the different retail stores?

22. The item was purchased for the following reasons

23. How many times have you purchased items in this product category in the past 10 years?

a. 0

b. 1

c. 2d. 3-4

e. 5-6

f. More than 6 times

24. Which of the following have you purchased within the last month?

a. Microwave

b. Household white goods

c. audio/car stereo/radio/cassette

d. Calculator

e. Video / computer game

f. Computer

g. Phone

h. TV



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i. DVD or Home cinema

j. Camera

k. Other

25. In thinking about your most recent experience with the Company, was the quality of customer

service you received:

a. Excellentb. Goodc. Averaged. Poore. Very poor

26. If you were not totally satisfied with the customer service, describe the reasons for your

dissatisfaction.

27. Was the process for getting your question resolved:

a. Excellentb. Good

c. Averaged. Poore. Very poor

28. If you were not totally satisfied with the process of getting your problem resolved, describe the

reasons for your dissatisfaction.

29. Would you say the value of the Company product, as compared to its price, is:

a. Excellentb. Goodc. Averaged. Poor

e. Very poor

30. The following questions pertain to the customer service representative you spoke to most

recently:


b. Somewhat Disagree

c. Neutral

d. Somewhat Agree

e. Strongly Agree

31. The customer service representative was very courteous.

32. The customer service representative handled my call quickly.

33. The customer service representative was very knowledgeable.

The following questions pertain to the process by which your most recent service contract

was handled:

34. The waiting time for having my questions addressed was satisfactory.

35. My phone call was quickly transferred to the person who best could answer my question.

36. The automated phone system made the customer service experience more satisfying.

37. Consider the total package of the Company including customer service, features and benefits,

and cost. How satisfied are you with the company?

38. If the Company’s Products were no longer available, what would you replace it with?

a. Functional Competitors



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b. In-Kind Competitors

39. All things considered, over the next 12 months how likely are you to replace the Company's

Products?

a. Certain

b. High Chancec. Not sure

d. Low Chance

e. Never

40. If you are looking to replace Company's Products, what are some of the reasons for doing

so?

41. Overall how satisfied are you with the product(s)?

a. Very satisfied

b. Satisfied

c. Neutral

d. Dissatisfied


42. What are some things that the Product/Service could do better?

43. In your opinion is the product better, about the same or worse than other company’sproduct(s)?

a. Better

b. About the same

c. Worse

44. How often do you typically use the product?

a. Dailyb. weekly

c. Less than monthly

d. Do not use

45. Where do you primarily use the product(s)?

a. At home

b. At the office

c. Another location outside the house

d. Not using it

e. Other

46. How often are you using the product(s) as compared to a month ago?

a. More

b. About the same

c. Less

d. Can't say

47. Do you usually buy this product on sale?

a. Yes

b. No

c. Doesn't matter

48. Do you typically read the back and side panel of the products package?

a. Yes



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b. No

c. Not sure

49. How familiar are you with the product(s)?

a. Very familiar (use on a regular basis)

b. Somewhat familiar (use it only sometimes)c. Familiar but never used it

d. Never heard of product before

50. What other brands of product(s) in this category have you heard of?

51. What were reasons for trying this product?

a. Looks good

b. Easy to use/convenient

c. Price Value

d. Solves Problem

e. Readily available

f. Best qualityg. Good selection

h. Just what I need

i. Advertising

j. Have not used

k. Other

52. How much did you pay for the product(s)?

53. How long have you used the product(s)?

a. Less than 1 month

b. 1 to 6 monthsc. 6 months to 1 year

d. 1 to 3 years

e. Not sure

f. Never used

g. Other


a. Daily

b. Once/week

c. 2 to 3 times a month

d. Once/month

e. Ever 2-3 months

f. 2-3 times a year or less

g. Not sure

h. Other

55. Overall, how satisfied are you with the Product / Service?

a. Very satisfied

b. Satisfied

c. Neutral

d. Dissatisfied


f. Not sure



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56. How likely are you to use/purchase the product(s) again?

a. Definitely

b. Probably

c. Not sure

d. Probably not

e. Definitely notf. Never used

57. Would you recommend the Product or Service to others?

a. Definitely

b. Probably

c. Not sure

d. Probably not

e. Definitely not

f. Never used

58. What recommendations would you offer for improving the Product or Service?

Differential Analysis

Decision making technique in which evaluation is confined to only those factors which are different or

unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)

compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs

that remain largely constant among the alternatives, and (4) select the alternative offering the best

cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.



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Customers’ Fashion Demographic and Retail Clothing Shopping

This is a Differential Analysis Survey of female respondents.


Demographics plus use of clothes price to help profile the shopper:

1. Within what price range are the daytime clothes you typically purchase?a. $30.00 or lessb. $30.01 to $50.00c. $50.01 to $70.00d. $70.01 to $90.00e. $90.01 to $110.00f. $110.01 to $130.00g. $130.01 to $150.00h. $150.01 to $170.00i. $170.01 to $210.00

j. More than $210.00

2. When shopping for everyday clothes, how many stores do you typically visit?









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Customers’ Fashion Attitudes

This is a Differential Analysis Survey of female respondents.

Attitudes and Life Style for clothing and fashion shopping:


Listed below are statements about shopping behaviour for clothes and about clothing fashions:

1. I buy clothes I like, regardless of current fashion.2. I buy new fashion looks only when they are well accepted.3. I am not as concerned about fashion as I am about modest prices and functionality.4. I prefer to buy well-known designer labels rather than take a chance on something new.5. My friends regard me as a good source of advice on fashion selection.6. I am confident of my own good taste in clothing.7. I'm not afraid to be the first to wear something different in fashion looks.

8. I like to buy clothes.9. I feel good when I buy something new.10. I like clothes that make the most of my figure.11. I am the first to try new fashions; therefore many people regard me as being a fashion

pacesetter.12. In this period of rising prices, spending excessive amounts of money on clothes is ridiculous.

13. What you think of yourself is reflected by what you wear.14. I plan my shopping trips carefully.15. You can tell you are just a bit better than someone else if you dress better than they do.16. A man wouldn't look twice at a woman who wasn't well dressed.17. A woman wouldn't look twice at a man who wasn't well dressed.18. Wearing good clothes is part of leading the good life.

19. I plan my wardrobe carefully.20. I resent being told what to wear by so-called fashion experts.21. I like clothes that emphasise my femininity.22. Fashion in clothing is just a way to get more money from the consumer.23. I often find I don't have all the accessories to go with my outfits.24. I shop for coordinated outfits.25. There is something wrong with a woman who doesn't care about dressing nicely.26. There is something wrong with a man who doesn't care about dressing nicely.



unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs





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Shopping Life Style Battery

Life style questions for classification of retail shoppers:


Statements about shopping behaviour for clothes and about clothing fashions.

1. I don't like to go shopping.2. I buy less clothing because of rising prices.3. I like having something suitable to wear for any occasion.4. I make purchases only when there is a need, not on impulse.5. I often go shopping to get ideas even though I have no intention of buying.6. I prefer to shop in stores that offer a wide variety of clothing selections.7. I shop only when I have to replace items which have worn out or are out of style.8. I go shopping often.9. I like to go to stores to see what's new in clothing.10. I make fewer shopping trips because of the high cost of gasoline.

11. Because of my active lifestyle I need a wide variety of clothes.12. I like to shop in many different stores.13. I find more of my clothes and accessories in off-beat shops than in traditional department and

specialty shops.14. I am current with forward fashion trends as pictured in advanced fashion magazines.15. I like to experiment with my clothes so that I won't look like everyone else.16. I like classic looks, but only if they are updated to reflect current fashion trends.17. I don't buy clothes that would make me stand out from everyone else.18. I prefer traditional styling in my clothes.19. If I have the time to select clothes, I tend to buy fewer


Decision making technique in which evaluation is confined to only those factors which are different orunique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)






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Supermarket & Food Shopping Attitudes


Supermarket & Food shopping attitude inventory:


Views on supermarket & food store shopping issues.

1. I prefer to invite friends over for dinner rather than take them out to eat.2. If a product is out of stock in a supermarket I would substitute rather than go to another store

to get it.3. I would rather shop in a large supermarket than a small supermarket.4. I enjoy preparing meals at home.5. I plan meals ahead of my shopping trip.6. A supermarket is a good place to buy CDs and tapes.7. I like supermarket shopping.

8. If they were available, I would buy hot, ready-to-eat foods (e.g., pizza, chicken) in asupermarket.9. Supermarkets make too much money.10. I use as many coupons as I can to keep my grocery bill down.11. A supermarket is a good place to buy automotive products.12. I like to try new grocery products when they first come out.13. Supermarkets do a good job in meeting the needs of single shoppers.14. Too many products are out of stock when I shop.15. The way supermarkets are laid out makes it easy to find the products I need.16. Supermarkets would overcharge if they thought they could.17. I try to save time by buying all groceries at one store.18. I have been buying less Convenience Foods to cut back on my grocery spending.19. Computerised checkout scanners benefit shoppers.

20. I normally buy some products on my grocery shopping trip that I hadn't planned to.









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Supermarket & Food Store Selection Criteria


Battery of questions to identify factors important in selection of a Supermarket or Food Store:


Select the answer that best expresses how important you think the factor is to you in selecting asupermarket.

1. Fast checkout2. A gourmet food section3. Low priced advertised specials4. Close to where you live5. Offers coupons in newspaper advertisements6. Courteous, friendly employees7. Offers generic products8. Makes it easy to cash checks

9. Large selection of wines10. Offers several brands to choose from in a category11. Provides menu and recipe ideas12. Convenience of parking13. High quality fruits and vegetables14. Has a prescription pharmacy in store15. Wide selection of ethnic foods (i.e., Mexican, Japanese, etc.)16. Open 24 hours17. Quality of meat cuts18. Wide selection of store private labels19. A service deli (with clerks to prepare product of your choice)20. Provides nutritional information about products21. Wide selection of national brands

22. Has bakery in the store23. Offers a variety of health and personal care products24. Offers variety of smaller size (e.g., single serving) products25. Large selection of fruits and vegetables26. Sells fresh seafood









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Where would you shop for...?


Comparative list of retail merchandise items to profile store preference by merchandise category:


Thinking of all the stores in this area where you or your family might shop, in which store would youmost likely shop for the following items?

1. Men's underwear2. Women's underwear3. Sports equipment4. Men's sweaters5. Women's dresses6. Fishing tackle7. Costume jewellery

8. Maintenance-free battery for a car9. Auto oil filter and/or motor oil10. Power lawnmower and other power garden tools11. Exterior house and trim paint12. Jeans for yourself13. Small kitchen appliances14. Sports or casual slacks15. Portable TV16. A digital camera17. Installation of a car exhaust system18. Ceiling fans and accessories19. Paint for your living room20. Small power tools such as a power drill

21. Mobile phone22. Hand tools such as hammers, screw drivers23. Easy to assemble furniture24. Exercise equipment25. Bicycles for yourself or your children









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Service Concept Test



1. Rating of the Company’s Service Offerings:

a. Lowb. Highc. Qualityd. Pricee. Trustworthy Brandf. Craftsmanship/Designg. Value for Price Paid

2. What features/attributes of this service are the most valuable to you?3. What do you find least appealing about this service?

4. Overall, how interested are you in buying this service in the future?a. Not at all interested

b. Not very interestedc. Neither interested nor uninterestedd. Somewhat interestede. Extremely interested

5. Based on the description, what price would you expect to pay for the service?6. If additional features were added to the basic concept, what would expect to pay?

7. If you wanted to buy/have this new service, which purchase method would you most prefer?a. Calling and ordering by telephoneb. Ordering through the mailc. Going to the company/place of business/officed. Using the Internet

e. Other

8. Which groups of people do you expect to be the greatest users of this service?a. Selfb. Family memberc. Co-workerd. Business/Organisatione. Studentf. Other adultg. Teen 13-18 yearsh. Child 8-12 yearsi. Child 2-7 years

j. Infants

9. How often do you use products from this service(s) category?a. Every dayb. Once a weekc. About every two weeksd. Once a monthe. Every three monthsf. Two-three times a yearg. Once a yearh. Less ofteni. Never used

10. How aware are you of the following companies that offer similar services?



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Customer service evaluation and feedback survey


1. How did you contact customer service?a. Email

b. Faxc. Telephoned. Webe. In personf. Other

2. If you called on the phone, how quickly did you get through?a. Immediatelyb. Under 30 secondsc. About 1 minuted. 2-5 minutese. More than 5 minutesf. I left a message

g. Does not applyh. Other

3. If you contacted customer service by fax or email, how long did it take to get a response?a. Under 2 hoursb. 2-6 hoursc. 6-12 hoursd. 1 business daye. More than 1 business dayf. They didn't get back to meg. Does not apply

4. What was your reason for contacting customer service?

a. Not satisfied with productb. Did not receive productc. Unable to order product/serviced. Problem with Web sitee. Needed more product informationf. Cancel subscription or membershipg. Other

5. Overall how satisfied are you with the company’s customer service representative?a. Very satisfiedb. Satisfiedc. Averaged. Dissatisfied

e. Very dissatisfiedf. Very dissatisfied



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Customer Service Evaluation


1. Have you ever bought / ordered the product(s) from the retailer?

2. Overall, how would you rate the Customer Service from retailer?a. Excellentb. Goodc. Averaged. Poore. Terriblef. Not Sure

3. How satisfied are you with the Customer Service from the retailer?a. Extremely satisfiedb. Very satisfiedc. Neutral

d. Very dissatisfiede. Extremely dissatisfied

4. Would you recommend the Customer Service from the retailer to a friend?a. Yesb. Noc. Not Sured. If no, why not?

5. For your NEXT product(s) purchase, how likely are you to purchase from the retailer?a. Definitely would buyb. Probably would buyc. Might or might not buy

d. Probably would not buye. Definitely would not buy

6. Which of the following modes did you use to place the order for the product(s)?a. In-storeb. Mail orderc. Internetd. Over the phonee. Faxf. Other

7. What are the THREE main reasons you didn't purchase the product(s) from anothercompany?

8. What would you change about the process of purchasing the product(s) (i.e. placing theorder, mode of payment, delivery, etc.) from the retailer?

9. How did you contact customer service?a. Emailb. Faxc. Telephoned. Webe. In personf. Other

10. If you called on the phone, how quickly did you get through?

a. Immediatelyb. Under 30 seconds



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c. About 1 minuted. 2-5 minutese. More than 5 minutesf. I left a message

11. If you contacted customer service by fax or email, how long did it take to get a response?

a. Under 2 hoursb. 2-6 hoursc. 6-12 hoursd. 1 business daye. More than 1 business dayf. They didn't get back to me

12. What was your reason for contacting customer service?a. Not satisfied with productb. Did not receive productc. Unable to order product/serviced. Problem with Web sitee. Needed more product information

f. Cancel subscription or membershipg. Other

13. Overall, how would you rate your satisfaction with the company’s customer servicerepresentative?

a. Extremely satisfiedb. Satisfiedc. Neutrald. Unsatisfiede. Extremely unsatisfied

14. Do you have comments or suggestions that would help us improve the company’s customerservice?

15. Overall, I am very satisfied with the way the retailer performed (is performing).a. Strongly disagreeb. Somewhat disagreec. Neutrald. Somewhat agreee. Strongly agree

16. Service representatives are well trained.17. Service representatives are well supervised.18. Service representatives adhere to professional standards of conduct.19. Service representatives act in the company’s best interest.20. Overall, I am satisfied with the service representatives.

21. The senior staff are knowledgeable and professional.22. I feel like I have a good personal relationship with the senior staff.23. The senior staff are making a positive contribution to the company’s business.24. The senior staff responds to the company’s inquiries in a timely manner.25. Overall, I am very satisfied with the senior staff.

26. What would be the primary reason for being very satisfied with the retailer servicerepresentatives?

27. What would be the primary reason for being very satisfied with the retailer store senior staff?

28. Compared to how you felt about the retailer before, what would you say is the likelihood of

purchasing again?a. Better, based on performance



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b. About the samec. Worse, based on performanced. Not sure

29. Considering the overall value of the project you paid for, was ita. An exceptional value, worth more than you paid for it

b. A good value, worth about what you paid for itc. A poor value, worth less than you paid for itd. Not sure

30. Overall, how do you feel about your experience the service provided?a. Excellentb. Very Goodc. Good or Faird. Poor

31. How would you rate the product for ease of use?a. Excellentb. Very Good

c. Adequated. Poor or Very Poor

32. In speaking with the support representative, how would you rate the following?a. Friendlyb. As friendly as I expectedc. Friendlyd. Averagee. Less friendly than I expectedf. Unfriendly

33. Professionalisma. As professional as I expected

b. Professionalc. Neither professional nor unprofessionald. Less professional than I expectede. Unprofessional

34. Interest in solving your problema. As interested as I expectedb. Very interestedc. Interestedd. Neither interested nor uninterestede. Uninterested

35. When solving your problem, how would you rate the information provided?

a. Extremely well presented and understandableb. Well presented and understandablec. Sufficient to solve the problemd. Difficult to understande. Extremely difficult to understand

36. Understanding of the problema. Very satisfied that my problem was understoodb. Somewhat satisfied that my problem was understoodc. Unsure that my problem was understoodd. My problem was not understoode. Did not have the ability to solve my problem

37. Was your problem solved on this call?a. Yes



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b. No

38. If you needed to contact the company's support service again and were given the option tospeak with this representative, would you?

a. Yesb. No

39. How would you rate the company's support as compared to that of other companies?a. much better than other companies' support.b. better than other companies' support.c. about the same quality as other companies' support.d. worse than other companies' support.e. much worse than other companies' support.f. I have never contacted another company for support.

40. What features/attributes of this support service are the most valuable to you?41. What do you find least appealing about this support service?42. Overall, how interested are you in buying this support service?

a. Not at all interestedb. Not very interestedc. Neither interested nor uninterestedd. Somewhat interestede. Extremely interested

43. Based on the description, what price would you expect to pay for the support service?

44. If you wanted to use the support service, which purchase method would you most prefer?a. Calling and ordering by telephoneb. Ordering through the mailc. Going to the company/place of business/officed. Using the Internet

e. Other

45. Who do you expect will use the support service most?a. Selfb. Family memberc. Co-workerd. Business/Organisatione. Studentf. Other

46. How often do you use products from this product(s) in this category?a. Every dayb. Once a week

c. Once a monthd. Every three monthse. several times a yearf. Less ofteng. Never used

47. How aware are you of the following companies that offer similar services?



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Customer Support Satisfaction Survey


1. Do you consider the problem resolved?

2. Was your question or issue resolved the first time you contacted technical support?

3. What is your overall satisfaction with this particular phone support experience?

4. Did you attempt to use the company’s online support web site before making this call?

5. If yes, how satisfied were you overall with this online support experience?

6. How satisfied are you with the company’s technical support in general?

7. We sincerely appreciate any comments or suggestions you have which will improve yoursatisfaction with the company’s service.

8. In your most recent customer service experience, how did you contact the representative?a. In personb. By telephonec. Internet

d. Through a dealere. Other

9. There was sufficient information available on the support web site to solve my problem.a. Strongly Agreeb. Somewhat Agreec. Neutrald. Somewhat Disagreee. Strongly Disagree

Did the company’s representative:

10. Quickly identify the problem

11. Appear very knowledgeable and competent

12. Help you understand the causes and solution to your problem

13. Handle problems with courtesy and professionalism

14. About how long did you have to wait before speaking to a representative?a. I was taken care of immediatelyb. Within 3 minutesc. 3-5 minutesd. 5-10 minutese. More than 10 minutes

15. About how long did it take to get this problem resolved?a. Immediate resolutionb. Less than one dayc. Between 1 and 3 daysd. Between 3 to 5 dayse. More than a weekf. The problem is still unresolved

16. How many times did you have to contact customer service before the problem was corrected?a. Onceb. Twicec. Three timesd. More than three times

e. The problem is still not resolved



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17. Overall, how satisfied are you with the customer service experience?a. Very satisfiedb. Satisfiedc. Neutrald. Dissatisfiede. Very dissatisfied

18. If you were less than totally satisfied, what could have been done to serve you better?

Product or Technical Services Evaluation

Where applicable.


How satisfied are you:1. With your experience of the most recent company Product or Technical Services?

2. With the timeliness of the company's Product or Technical Services?3. With the quality of the Product or Technical Services?

4. That company Product or Technical Services personnel are sufficiently knowledgeable and

professional?

5. With the company's Technical service overall?

a. Strongly agree

b. Agree

c. Neutral

d. Disagree

e. Strongly disagree

f. Not sure

6. With the communication between you and the company overall?

a. Very satisfied

b. Satisfied

c. Neutral

d. Dissatisfied


f. Not sure

7. With the overall quality of the company's sales service?

a. Excellent

b. Very goodc. Good

d. Fair

e. Poor

8. With the overall value of the company's services compared with the price paid?

a. Excellent

b. Very good

c. Good

d. Fair

e. Poor

9. Would you recommend the company’s services?

a. Yes



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b. No

c. Not sure

Information about the Product / Brand purchased:

10. Name of store where purchased:

11. What type of Brand / product did you purchase?

12. How would you describe this purchase?

a. First time purchase

b. Addition to current Brand product(s) owned

c. Addition to product owned (other brand)

d. Replacement of Brand product owned

e. Replacement of product owned (other brand)

13. What other brands did you consider?

14. How do you plan to use this product?

a. For Homeb. For Work

c. For School

d. For the Outdoors

e. Other

15. Was this product...

a. received as a gift?

b. purchased?

16. How did you first learn about Brand products?

a. Friend/relativeb. Salesperson

c. Ads/promotions

d. Via the internet/website

e. In-store display

f. Other

17. Which of the following MOST influenced your purchase of Brand products?

a. In-store display

b. Previous experience with the brand

c. Price/Good value

d. Style/Appearance

e. Colour/Design

f. Size/Capacity

g. Weight

h. Warranty

i. Comfortable

j. Quality construction

k. Durability



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Satisfaction: Product & Technical Documentation


1. How satisfied are you with the Technical Documentation

a. Very Satisfiedb. Satisfied

c. Neutral

d. Dissatisfied


2. Technical Documentation: with the appropriateness of the documentation to your needs?

3. Technical Documentation: with the quality of the documentation delivered?

4. Technical Documentation: with the accuracy of the documentation delivered?

5. Technical Documentation: with the usability of the documentation provided?

6. Technical Documentation: overall with the documentation provided?

7. What should the retailer do to improve the quality of the documentation?

8. The retailer understands the service needs of their customers.

a. Strongly agree

b. Agree

c. Neutral

d. Disagree

e. Strongly disagree

9. How would you rate the retailer overall?

a. Poor Fair

b. Good

c. Very Good

d. Excellent

10. Overall, the quality of Company's sales service is:

a. Poor Fair

b. Good

c. Very Good

d. Excellent

11. Overall, the value of Company's services compared with the price paid is:

e. Poor Fair

f. Goodg. Very Good

h. Excellent

12. Would you recommend Company's products / services to friends or colleagues?



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Customer Services Evaluation


How satisfied are you:

1. with your experience of the most recent Technical Services or Product Services?2. with the timeliness of the company’s Services?3. with the quality of the company’s Services?4. that the personnel are sufficiently knowledgeable and professional?5. with the company’s installation service overall?

6. The company understands my service needs.a. Strongly agreeb. Agreec. Neutrald. Disagreee. Strongly disagree

f. Not sure

7. Overall, how satisfied are you with the amount of contact between you and the company?a. Very satisfiedb. Satisfiedc. Neutrald. Dissatisfiede. Very dissatisfiedf. Not sure

8. Overall, the quality of the company's sales organisation's service is:a. Excellentb. Very good

c. Goodd. Faire. Poor

9. Overall, the value of the company's services compared with the price paid is:a. Excellentb. Very goodc. Goodd. Faire. Poor

10. Would you recommend the company's services to family, friends or colleagues?a. Yes

b. Noc. Not sure

Rate your satisfaction with the dealer service department on each of the following:

11. How satisfied are you with?a. Ease of scheduling service?b. Completion of the service in the time promised?c. Explanation of the work performed?d. Effort of the dealership to obtain partse. Overall performance of the person who prepared your service order?f. Effort of the dealership to see that the service was done right?



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12. Select the category of service work performed for the last service visit:a. Warrantyb. Non-warrantyc. Scheduled maintenanced. Other

13. Was your product fixed right the first time?a. Yesb. Noc. Not sure

14. After your service visit, did someone from the company contact you by phone or by mail tosee if you were satisfied with the overall service experience?

15. Would you recommend this company to a friend or relative as a place to have their productsserviced?

a. Definitelyb. Probably

c. Not sured. Probably note. Definitely not

16. Should you need service again, would you return to this company?a. Definitelyb. Probablyc. Not sured. Probably note. Definitely not

17. If you are not totally satisfied with the service, state below the reason(s) for yourdissatisfaction.

Indicate your opinion of the following statements about salespersons:

18. Salespeople are knowledgeable about their products.19. Salespeople promptly service customers as they enter the store.20. Salespeople are courteous.21. Salespeople are well groomed.22. Salespeople accurately presented product information.23. Salespeople adequately explained service policy.24. Salespeople are friendly.25. I am very satisfied with the customer service at the store.

26. How long did you have to wait before a salesperson attended to you?a. 0-2 minutesb. 3-5 minutesc. 6-10 minutesd. 11-15 minutese. more than 15 minutes

27. On your most recent service, how would you rate the service in the following areas?a. Quality of work performedb. Avoiding inconveniencing youc. Making you feel comfortabled. Willingness to go out of their way to satisfy youe. Friendliness and helpfulness of cashiers

f. Having convenient hours for serviceg. Ease of obtaining an appointment



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h. Quickly acknowledging your arrivali. Promptness in handling repair work

j. Arranging replacementk. Performance of repairsl. Clean, comfortable waiting aream. On time delivery

28. Did the following things occur on your most recent service visit?a. You were explained the work to be performed beforehand.b. You were explained the work performed and the breakdown of the charges.c. You were informed when the work was done.d. The paperwork was completed and waitinge. They contacted you to ensure the work was performed to your satisfaction

29. What could the company do to improve the service experience?

30. How satisfied are you with the customer service you received most recently:a. Very satisfiedb. Satisfiedc. Neutrald. Dissatisfiede. Very dissatisfied

31. If you were not totally satisfied with the customer service, describe the reason(s) for yourdissatisfaction?

32. Describe the aspects of the service that you were completely satisfied with?

33. How satisfied are you with the process of getting your question resolved.a. Very satisfiedb. Satisfiedc. Neutrald. Dissatisfiede. Very dissatisfied

34. If you were not totally satisfied with the process of getting your question resolved, describethe reason(s) for your dissatisfaction?

35. If you were satisfied with the process of getting your question resolved, describe thereason(s) for your satisfaction?

36. How would you rate the product's value for money:a. Excellentb. Goodc. Faird. Poor

e. Not sure

37. What aspects of the product(s) were of no benefit to you?38. What aspects of the product(s) were most beneficial for you?

Choose an option that closely represents your opinion about the customer service representative thatyou spoke to recently:

39. The customer service representative was very courteous.a. Strongly Disagreeb. Somewhat Disagreec. Neutral

d. Somewhat Agreee. Strongly Agree



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40. The customer service representative handled my call quickly.a. Strongly Disagreeb. Somewhat Disagreec. Neutrald. Somewhat Agree

e. Strongly Agree

41. The customer service representative was very knowledgeable.a. Strongly Disagreeb. Somewhat Disagreec. Neutrald. Somewhat Agreee. Strongly Agree

Choose an option that closely represents your opinion about the process with which your most recentservice contract was handled:

42. The waiting time for having my questions addressed was satisfactory.a. Strongly Disagreeb. Somewhat Disagreec. Neutrald. Somewhat Agreee. Strongly Agree

43. My phone call was quickly transferred to the person who best could answer my question.a. Strongly Disagreeb. Somewhat Disagreec. Neutrald. Somewhat Agreee. Strongly Agree

44. The automated phone system made the customer service experience more satisfying.a. Strongly Disagreeb. Somewhat Disagreec. Neutrald. Somewhat Agreee. Strongly Agree

Consider the total package i.e. the customer service, the product(s) features, benefits, and cost:

45. How satisfied are you with the company?a. Very Satisfied

b. Satisfiedc. Neutrald. Dissatisfiede. Very Dissatisfied

46. If the product(s) were no longer supplied by the company, what would you replace it with?a. Functional Competitorsb. In-Kind Competitors

47. All things considered, over the next 12 months how likely are you to replace the Company’sproduct(s) with a Competitor ’s Products?

a. Very certainb. High chance

c. Low chanced. No chance



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e. Not sure

48. What are some of the reasons that you are looking to replace the Company’s product(s) during this year?

Help Desk Support:

How satisfied are you with:49. overall quality of telephone support?50. overall quality of on-site support?51. knowledge and professionalism of the help desk support staff?52. knowledge and professionalism of on-site support engineers?53. communication and follow-up on problem resolution?54. ability of help desk to diagnose your problem?55. ability of the help desk to solve your problem?56. time required to resolve your problem?57. overall quality of the solution?58. maintenance services offered?

59. How could the company improve the quality of support we provide to you?

60. The company understands the service I need.a. Strongly agreeb. Agreec. Neutrald. Disagreee. Strongly disagreef. Not sure

61. Overall, how satisfied are you with the amount of contact between you and the company?a. Very satisfied

b. Satisfiedc. Neutrald. Dissatisfiede. Very dissatisfiedf. Not sure

62. Overall, the quality of the company's sales department service is:a. Excellentb. Very goodc. Goodd. Faire. Poor

63. Overall, the value of the company services compared with the price paid is:a. Excellentb. Very goodc. Goodd. Faire. Poor

64. Would you recommend the company services to family and friends?a. Yesb. Noc. Not sured. Other



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65. In evaluating your most recent customer service experience, was the quality of service youreceived:

a. Very poorb. Somewhat unsatisfactoryc. About averaged. Very satisfactory

e. Excellent

66. What about the service experience stands out?

67. Was the process for getting your problem resolved:a. Very poorb. Somewhat unsatisfactoryc. About averaged. Very satisfactorye. Excellent

68. What about the process of getting your problem resolved stands out?

Evaluate the customer service representative:

69. The customer service representative as very courteous.a. Strongly disagreeb. Somewhat disagreec. Neutrald. Somewhat agreee. Strongly agree

70. Was there anything about the courteousness of the service that stands out as beingsuperior?

a. Patient

b. Enthusiasticc. Listened carefullyd. Friendlye. Responsivef. Other

71. What about the representative could be improved?a. Not patientb. Not enthusiasticc. Didn't listen carefullyd. Unfriendlye. Unresponsivef. No improvement needed

g. Other

72. The customer service representative handled my call quickly.a. Strongly disagreeb. Somewhat disagreec. Neutrald. Somewhat agreee. Strongly agree

73. What would best describe what happened?a. Kept me waiting on holdb. Had to explain several timesc. Didn't know how to handle the problem

d. Had to ask otherse. Spoke slowly



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f. No improvement neededg. Other

74. The customer service representative was very knowledgeable.a. Strongly disagree

b. Somewhat disagreec. Neutrald. Somewhat agreee. Strongly agree

75. What would best describe what happened?a. Gave me the wrong informationb. They didn't understand the questionc. Gave unclear answersd. Couldn't solve probleme. Disorganisedf. No improvement neededg. Other

76. The waiting time for having my question addressed was satisfactory.a. Strongly disagreeb. Somewhat disagreec. Neutrald. Somewhat agreee. Strongly agree

77. My phone call was quickly transferred to the person who best could answer my question.a. Strongly disagreeb. Somewhat disagreec. Neutrald. Somewhat agree

e. Strongly agree

78. How long have you used the service(s)a. Less than one monthb. 1 to 6 monthsc. 6 months to a yeard. 1 to 3 yearse. Over 3 yearsf. Neverg. Other

79. How often do you use the product(s) / service(s)?a. Daily

b. Once/week or morec. 1 to 3 times a monthd. Once/monthe. Every 2-3 monthsf. 2-3 times a yearg. Other

80. Overall, how satisfied are you with the product(s) / service(s)?a. Very satisfiedb. Satisfiedc. Neutrald. Dissatisfiede. Very dissatisfied



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81. How likely are you to use/purchase the product(s) / service(s) again?a. Very likelyb. Probablyc. Maybed. Probably note. Definitely not

f. Never used

82. Would you recommend the product or service to others?a. Definitelyb. Probablyc. Maybed. Probably note. Definitely notf. Never used

83. What recommendations would you offer for improving the product(s) / service(s)?









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Website Evaluation


1. How often you visit the company’s website.a. Everyday

b. Once a weekc. Once a monthd. Rarely

2. When you visit the site, are you using the computer froma. Officeb. Home (including a home office)c. Equally from the home and officed. Other

3. Would you say the company’s web site is:a. Very attractiveb. Somewhat attractive

c. Averaged. Not very attractive

4. How much effort did you have to take to find the company’s web site?a. A lot less than I expectedb. Less than I expectedc. About what I expectedd. More than I expected

5. From your experience with other sites, rate the following features of the web pages:a. Visual appearance/layoutb. Contentc. Writing style

6. From your experience, what do you find is the biggest challenge in using the company’s site?a. I am new to the Internetb. Information I am looking for is not availablec. Information is not well organisedd. There is just too much informatione. Hard to navigate through the informationf. Takes too long to load a pageg. Downloadable files or forms are in a format I cannot use

7. Did the menu of items on the home page make sense to you?8. Did you experience any problems downloading files?

9. How did you hear about the Website?a. Literatures: list sourceb. Hotlinec. Retailerd. Industrye. Newsletters/literaturef. Media (newspaper, radio, TV)g. Associate/friendh. Followed Link from another web pagei. Search engine or Other



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Online Retailer Evaluation

Battery of questions focusing on attitudes about purchasing online and at this company’s site:


Thinking about your experience with this internet retailer, indicate your opinions about the following

statements:

1. I prefer making a purchase from this Internet retailer over using local offices, malls or stores.

2. I prefer this Internet retailer over other home shopping services (i.e., catalogues, "1-800"services or television).

3. This Internet retailer doesn't just sell products or services--it entertains me.

4. I received special rewards and discounts from doing business with this Internet retailer.

5. I say positive things about this Internet retailer to other people.

6. I consider this Internet retailer to be my first choice when I need products or services of thistype.

7. The "look" of this Internet site is appealing to me.8. I really like doing business with this Internet retailer.

9. I intend to continue to visit this Internet retailer's site in the future.

10. I intend to purchase from this Internet retailer in the future.

11. This Internet retailer is one of the first places I intend to look when I need the type ofmerchandise or services it provides.

12. It would require a lot of time and effort on my part, to set up an account with another Internetretailer.

13. It would take a lot of time and energy to look for another Internet retailer for this type ofproduct.

14. The products and/or services I purchased from this Internet retailer were a good value.

15. I enjoy doing business with this Internet retailer.

Purchasing on the Internet


1. Have you purchased products online, who did you purchase from, what did you spend?

2. In the past three months, have you purchased products or services through the Internet, foryour personal use?

3. Which products or services categories have you most recently purchased online?a. Foodb. Clothingc. Household goods & articlesd. Electricals & Electronic productse. Computers or peripheralsf. Softwareg. CDs/DVDsh. Flowersi. Concert tickets

j. Travelk. Fast food



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l. Books or magazinesm. Servicesn. Financial & Insurance productso. Other

4. Thinking back to the Internet retailers you've purchased from, have you ever:a. provided feedback of the product or services they sellb. completed a survey for that Internet retailerc. communicated with other users via e-mail or chat roomsd. When you began shopping on the last occasion, were you:

i. Just surfing the netii. Intending to make a purchase.iii. Other

5. How much did you spend on your most recent transaction?a. Less than $25b. $26-$50c. $51-$75

d. $76-$100e. Over $100

6. Did you return the merchandise or cancel the service after you received it?7. Did you contact the customer service department of this Internet retailer with a complaint or

problem?

8. How much would you estimate you have spent with this Internet retailer in the past twelvemonths?

a. less than $50b. $51-$100c. $101-$150d. $151-$200

e. more than $200

9. How many transactions have you made with this Internet retailer over the past 12 months?

10. Which Internet retailers do you use most?

11. When you began shopping on the last occasion, were you:a. Surfing the net with no intent to purchaseb. Surfing the net with intent to make a purchase.c. Other



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Internet Habits and Uses

Habits and uses of Internet users:


1. How comfortable do you feel using the Internet?

a. Very comfortableb. Somewhat comfortablec. Neither comfortable nor uncomfortabled. Somewhat uncomfortablee. Very uncomfortable

2. How satisfied are you with your current skills for using the Internet?a. Very satisfied - I can do everything that I want to dob. Somewhat satisfied - I can do most things I want to doc. Neither satisfied nor unsatisfiedd. Somewhat unsatisfied - I can't do many things I would like to doe. Very unsatisfied - I can't do most things I would like to do

3. How comfortable do you feel using computers, in general?a. Very comfortableb. Somewhat comfortablec. Neither comfortable nor uncomfortabled. Somewhat uncomfortablee. Very uncomfortable

4. Some websites ask for you to register with the site by providing personal information. Whatpercentage of the time do you enter false information when asked to register?

a. Rather not sayb. I've never falsified informationc. Under 25% of the timed. 26 - 50% of the time

e. 51 - 75% of the timef. Over 75% of the timeg. I've never registered with a site

5. Why don't you purchase more products and services on the web, either for yourself or foryour work/business?

a. Not applicableb. Never tried itc. Too complicated to place orderd. Faster/easier to purchase locallye. Not familiar with vendorf. Don't trust that my credit card number will be secureg. No receipt/documentationh. Difficult to judge the quality of a product/servicei. Not enough information to make a decision

j. Generally uncomfortable with the ideak. Other

6. In your opinion, what is the single most critical issue facing the Internet?a. Finding things/navigating aroundb. Speed/bandwidthc. Government regulationd. Equal access for alle. Unacceptable adult contentf. Internet crime (e.g. hate crimes, stalking)g. Paying for online services or informationh. Censorshipi. Privacy



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j. Other

7. Which of these groups have you become more connected to through the Internet?a. Noneb. People who share my political interestsc. People who share my hobbies/recreational activities

d. People who share my religione. People in my professionf. People in my familyg. People in similar life situations (e.g. self-help groups, support groups)h. Other groups

8. Complete the following sentence in the way that comes closest to your own views: "Sincegetting on the Internet, I have "

a. become MORE connected with people like me.b. become LESS connected with people like me.c. Don't know/can't say

9. Which of the following have you done?

a. Ordered a product/service from a business, government or educational entity by fillingout a form on the web

b. Made a purchase online for more than $100c. Created a web paged. Customised a web page for yourself (e.g. Google, Yahoo, News Services)e. Changed your browser's "startup" or "home" pagef. Changed your "cookie" preferencesg. Participated in an online chat or discussion (not including e-mail)h. Listened to a radio broadcast onlinei. Made a telephone call online

j. Used a nationwide online directory to find an address or telephone numberk. Taken a seminar or class about the Web or Internetl. Bought a book to learn more about the Web or Internet









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Part N.2 : Supplemental Retail Trade Survey Data


This section provides a battery of supplemental Trade and Industry Surveys.

Business Proficiency of the Company

Expert and Industry Appraisal of AGDMedia: as an Excel file: Part_N.2.1

1. Company leadership is fully committed to the long-term success of their sales partners.2. Top management responds adequately to needs in the marketplace.3. Top management strengthens the company's competitive position.4. Company leadership can be trusted to do what they say they will do.5. Company leadership is committed to support and work with the sales team.

6. The company and the sales team are unified, moving in one direction together.7. The company and the sales team share a positive, winning attitude.8. There is effective communications between the promotion agency and the company.9. The promotion agency listens to and understands the sales team's needs.10. The company's marketing is aligned in support of the sales network.11. There is effective communications between the company's marketing group and the sales

teams in the field.12. The marketing group listens to and understands sales teams' needs.13. Employees understand the company's vision and values.

Ranking of the effectiveness of the Brand:14. The strategic direction of the Brand.

15. The marketing plans for the Brand.16. The company's investment in brand marketing this year.17. The company's plan for media advertising.18. The advertising creative executions.19. The Brand Slogan advertising for product.20. The company's planned channel support.

In evaluating the Company's competitive position, are they:21. Aggressively pursuing market leadership.22. Flexible in meeting customer's needs.23. Reactive, following major competitors' actions.24. Less effective than other competitors.

25. Retailer / Franchisee / Dealer Feedback

26. To what extent will the company give greater emphasis to effective business planning overthe next few years?

a. Great extentb. Moderate extentc. Slight extentd. Not at all



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Organisational Satisfaction – Internal

Employee Surveys at AGDMedia: as an Excel file: Part_N.2.2

1. In your opinion, how have customer satisfaction ratings changed at your organisation in the

past year?a. Improved considerablyb. Improved somewhatc. Has remained about the samed. Has declined somewhate. Has declined considerablyf. Don't know

2. In your opinion, how important is customer satisfaction within your organisation?

a. It's a high priorityb. It's a mid-level priorityc. It's a low priorityd. Don't know

3. Does your organisation have managers/staff dedicated to customer -satisfaction matters?

a. Yesb. Noc. Don't know

4. How often does your organisation conduct surveys to evaluate customer satisfaction?

a. Monthly or more oftenb. Quarterlyc. Semi-annuallyd. Yearly or less oftene. We don't

5. Which one of the following means is used to evaluate customer satisfaction?

a. Questionnaires sent through the mail (in-house efforts)

b. Follow-up telephone calls (in-house efforts)c. An outside firm has been hired to track customer satisfactiond. Suggestion boxes placed in facilitiese. Other

6. Has your organisation initiated programs to improve customer satisfaction within the past

year?

a. Yesb. Noc. Don't know

7. What sector of the industry do you believe needs the most improvement in customer

satisfaction?

8. What is the most compelling reason for your organisation to improve customer satisfaction?

a. Fear of losing customer to competitorsb. Fear of losing revenuec. Fear of increased consumerismd. Fear of damage to organisation's reputatione. Other

9. In your opinion, has customer satisfaction been shown to have a direct effect on your

organisation's bottom line?a. Yes



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b. Noc. Don't know

10. All employee applicants are screened with a test to determine their desire to serve customers.

11. We offer an unconditional 100% guarantee of satisfaction for everything we sell or service--

we make it easy for customers to return anything, without hassle.

12. We trust the judgment of the company’s employees and empower them to resolve customercomplaints on the spot.

13. We believe that the company’s employees and associates are the best ambassadors of thecompany’s brand.

14. We measure customer satisfaction several times throughout the year.

15. Every employee and sales associate always greets customers by their names whenever we

speak to them.

16. Our customers can always talk to a "real" person.

Sales Staff Training Evaluation


1. When did you start in your current position?

2. Were you given formal sales training with the company before you started your job?

3. Have you been given continuous sales training?

4. When was the last time you attended a training course?

5. Was the course arranged and conducted in-house, or has it conducted by an outside trainingcompany.

6. Overall, how satisfied were you with your last training course:a. Extremely Satisfiedb. Satisfiedc. Neutrald. Dissatisfiede. Extremely Dissatisfied

7. with the materials you received before the course and their value in preparing you to morefully participate in the sessions?

8. with the "skill-based" training that emphasises interaction and participation?

9. with applying the business process to a specific product line?

10. with your ability to apply the knowledge and skills from the sessions?

11. with the overall logic and consistency to the series of sessions you attended?

12. that you received at least one specific skill or tool that will enable you to become moreeffective in selling company products?

13. with the tools you have been provided to improve the satisfaction rating with your customers?

14. that there was a sufficient amount of time allocated to cover the content in the individualsessions?



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15. that the information and skill building were relevant to your learning needs?

16. that the sessions changed your behaviour and enhanced your effectiveness in launching newproducts?

17. that the information and skill building activities on maintaining and developing accounts wererelevant to your learning needs?

18. that you are incorporating the use of your existing sales analysis tools frequently enough incalling on your existing accounts?

19. that you are focusing on providing Total Customer Satisfaction with every customer bysoliciting their problems and needs which are not being met?

Store Manager’s View of Brand Perception by Customers


The Brand Test1. Do you know, from your customers' perspective, what the most distinctive attributes are that

differentiate your brand from competitors?

2. Does your organisation have a brand promise, mission or vision statement?

3. Do you know your customers' perspectives regarding how they view your brand whencompared to your closest competitor?

4. Is your organisation’s leadership responsible for the brand’s success as opposed to themarketing department?

5. In general, can most employees recite the brand promise, mission, vision statement, or theirkey messages?

6. When important decisions need to be made regarding the brand, does someone representthe customer's viewpoint?

7. Do you place a priority on being perceived by consumers--first and foremost--as a "friend"?

8. How familiar are your customers with the product(s)?

a. Never heard of itb. I am aware but have never used itc. Use it only sometimesd. Use it on a regular basis

9. Which of these listed product Brands have your customers used?

10. How did your customers first hear about the product(s)?

a. TV

b. Radio

c. Magazine

d. Newspaper

e. Internet

f. Friend/relative/associate

g. Haven't heard of it before

h. Not sure

11. Overall, how do your customers rate the quality of the product(s)?



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a. Poor

b. Fair

c. Good

d. Very Good

e. Excellent

12. What is it that you personally would most like to change about the product(s)?

13. Would your customers recommend the product(s) to a friend or associate?

a. Definitely Not

b. Probably Not

c. Not sure

d. Probably

e. Definitely

14. When was the last time you personally used the product(s)?

a. Under 1 month

b. 1 to 6 monthsc. 6 months to 1 year

d. Not sure

Retailer Survey on their e-Commerce

This survey is designed to obtain a better understanding of the retailer and their e-commerceoperations:

Employee Surveys at AGDMedia: as an Excel file: Part_N.2.51. What is the main retail category that your brick-and-mortar store(s) operates in?

Retail Brand on the Internet:

2. Compared to your online competitors, how would you rate the strength of your company'sretail brand on the Internet?

3. Overall, compared to other brands in your retail category, how would you rate the level ofawareness of your retail brand name on the Internet?

4. Overall, compared to other brands in your retail category, how would you rate the level ofquality associated with your retail brand name on the Internet?

5. Overall, compared to other brands in your retail category, how would you rate the level offavourability associated with your retail brand name on the Internet?

6. Overall, rate the level to which your brand is recognised with its retail category on the Internet.

Distribution Operations:

7. Relative to the company’s competitors, products are consistently available in inventory.

8. Compared to the company’s competition, the time between receiving and shipping orders isshorter.

9. Our company relies on supplier drop shipments to consumers to satisfy online orders.

10. Our company's distribution system can handle the volume of online orders.



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11. Relative to the company’s competition, online orders are filled from the company’s existinginventory.

12. Compared to the company’s competition, the company’s relies heavily on backorders.

International Markets:

13. Before we started the company’s primary Web site, some people in the company hadexperience in international markets.

14. My company knows how to market products in other countries.

15. Few people in my company's primary Web site operations are knowledgeable about foreignmarkets.

16. Our e-commerce strategy considers differences between the home market and foreignmarkets.

Internal Organisational Culture:

17. In general, the company’s e-commerce top managers favour a strong emphasis on marketingtried and true products.

18. In the past year, my firm has marketed many new lines of products on the Web site.

19. In dealing with competitors, the company’s e-commerce approach is to respond to actionswhich competitors initiate.

20. In dealing with competitors, the company’s e-commerce approach is to pursue an aggressive,competitive posture.

21. In general, the company’s e-commerce top managers favour low-risk projects (i.e., projectswith certain rates of return).

22. In general, the company’s e-commerce top managers believe that bold, wide-ranging acts arenecessary to achieve the firm's objectives.

23. When confronted with decision-making situations involving uncertainty, the company’s e-commerce approach is to adopt a cautious, "wait-and-see" posture.

24. Satisfying the company’s customers is the company’s most important business objective.

25. We constantly communicate the company’s commitment to serving customer needs.

26. We share information about the company’s successful and unsuccessful experiences acrossall business functions.

27. Our strategy for competitive advantage is based on the company’s understanding ofcustomers' needs.

28. We measure customer satisfaction infrequently.

29. We have regular performance measures of customer service.

30. Our competitors are more customer focused than we are.

31. I believe that the company’s business exists primarily to serve customers.

32. Data on customer satisfaction are disseminated at all levels in the company’s e-commerceunit on a regular basis.



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Channel Issues:

33. We find it difficult to change established procedures to cater to the needs of e-commercecustomers.

34. We can easily change the manner in which we carry out tasks to fit the needs of e-commerce.

35. This firm will not aggressively pursue an e-commerce strategy that causes existinginvestments to lose value.

36. We are willing to sacrifice sales from existing channels in order to improve sales on thecompany’s primary Web site.

Supplier Relations:

37. There is open communication between the company’s e-commerce business and thecompany’s most important supplier.

38. Our e-commerce business and the company’s most important supplier share commonobjectives.

39. Our most important supplier makes it difficult for the company’s e-commerce business to do

its job.

40. Our most important supplier does not like many of the things the company’s e-commercebusiness does.

41. The products we get from the company’s most important supplier can also be purchased byend-users on the company’s most important supplier's Web site.

42. Our most important supplier does not offer products to end-users on their Web site.

43. There is an overlap in products offered to end-users on the company’s Web site and thecompany’s most important supplier's Web site.

Market:

44. Customers' preferences change frequently.

45. Our customers rarely request new products.

46. Customer needs are becoming more predictable.

47. Customer loyalty is decreasing.

48. On the Internet, the rate of firm failure is high in this retail category.

For the most recent annual fiscal period for your primary Web site:

49. Approximate revenue growth (%)

50. Approximate total online sales (in US $)51. Percentage of Web site customers that were repeat purchasers (%)

52. Advertising dollars as a percentage of sales dedicated to e-commerce (%)

53. Percentage of sales generated from affiliate program (%)

54. Approximate advertising budget (in US $)

55. Percentage of sales generated from outside the headquarters' country (%)

56. Indicate the extent to which your company's Web site has achieved the following outcomesrelative to its original objectives for the most recent annual fiscal period.

a. objectives Met

b. objectives Well abovec. objectives Well below



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57. Total sales

58. Profitability

59. Market share

60. Sales growth61. Number of new customers

62. Customer service

General inquiries into your e-commerce operations, focussed on your company's primary e-commerceWeb site.

63. Indicate when your company entered the online market, relative to the competition, in theonline retail category you specified at the beginning of the survey.

64. Indicate your current job title.

65. How many Web sites does your company currently operate?

66. How many of the Web sites you specified in question #1 are e-commerce sites (i.e., allowonline purchases)?

67. What is the main retail category that your Web site operates in?

For your company's primary e-commerce Web site:

68. How many people are employed for your Web site operations?

69. Where is your Web site headquartered?

Brick-and-Mortar Operations:

Regarding your brick-and-mortar operations (i.e., retail store(s) operating in the physicalmarketplace):

70. Does your company operate one or more brick-and-mortar retail stores?

Brick-and-Mortar Retail Brand:

71. Compared to your brick-and-mortar competitors, how would you rate the strength of yourcompany's retail brand in the physical marketplace?

72. Overall, compared to other brands in your retail category, how would you rate the level of

awareness of your retail brand name in the physical marketplace?

73. Overall, compared to other brands in your retail category, how would you rate the level ofquality associated with your retail brand name in the physical marketplace?

74. Overall, compared to other brands in your retail category, how would you rate the level offavourability associated with your retail brand name in the physical marketplace?

75. Overall, rate the level to which your brand is recognised with its retail category in the physicalmarketplace?



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Affiliate / Partner Program:

An affiliate or partner is defined as a Web site that is linked to the site and receives a commission,fee, or other benefit for sales generated from the link:

76. Does your primary Web site have an affiliate program?

77. How many affiliates are currently enrolled in your affiliate program?

78. How long has your affiliate program been in operation?

79. How many marketing agreements does your company have with search engines and portalsfor its primary e-commerce Web site?

a. 1-3b. 4-9c. 10-19d. 20-49e. 50 or moref. Do not know

80. On average, how many unique visitors does the primary e-commerce Web site receive eachmonth?

81. Is your primary e-commerce Web site the result of a joint venture or partnership with anothercompany?

82. Is your primary e-commerce Web site maintained by an outside firm?

Company Web Building Activities

Corporate demographics and investigation of web building expenditures and activities.


1. Which of the following best describes the decision makers’ position within the company?a. Ownerb. Chief Executivec. Partnerd. Senior executive in charge of advertising, marketing, brand.e. Executive in charge of advertising, marketing, brand.f. Professional consultantg. Finance/accounting/purchasingh. Marketingi. Office manager

j. Outlet / Site manager

k. Administrative assistantl. Technical or IT professionalm. Sales professionaln. Other

2. In which City, State / Country is your office located?

3. How many employees work at this location?a. 1 to 7b. 8 to 19c. 20 to 49d. 50 to 99e. 100 or more

f. Don't know/Not sure



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4. What are the main product categories sold by your company?

5. Select the range that is closest to the approximate annual sales for your company, at thislocation:

a. Less than 100,000b. $100,000 to $499,999

c. $500,000 to $999,999d. $1 million to $5 millione. $5 million or greaterf. Don't know

6. What was your involvement is in the website development and maintenance process?a. Determine need to purchaseb. Evaluate various products/vendorsc. Authorise/approve purchased. Determine where to purchasee. Place ordersf. Other

7. Establish the domaina. Determine need to purchaseb. Evaluate various products/vendorsc. Authorise/approve purchased. Determine where to purchasee. Place ordersf. Other

8. Has your company purchased any of these service in the past 6 months:a. We did not purchaseb. Developing a Websitec. Registering a domain named. Web Hosting Services

9. How much would you estimate your company spent in the past 6 months on the following webrelated activities (at this location)?

a. Did not purchaseb. Don't Knowc. $1,500 to $5,000d. $5,000 to $10,000e. $10,000 to $25,000f. $25,000 or moreg. For Developing a Websiteh. For Web Hosting Services & Maintenance

10. Does your company plans to purchase this service in the next 6 months:

a. Developing a new Websiteb. Registering a new domain namec. Web Hosting Services

11. Which of the following best describes your company's website?a. Informational/advertising site that describes the business or displays productsb. E-commerce site that has credit card processing abilityc. Fully integrated site with credit card and order processing capabilityd. No website but plan to have onee. No website and no plans in the near future to develop one.f. Other



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12. How satisfied are you with the overall quality, look, feel, and functionality of your website?a. Very satisfiedb. Somewhat satisfiedc. Neutrald. Somewhat dissatisfiede. Very dissatisfied

13. Which one of the following business sectors best describes your core business?a. Communications/transportation/utilitiesb. Banking/finance/insurance/real estate/legalc. Retaild. Value added information service providere. Governmentf. Data processing/computerg. Educationh. Business servicesi. Other

14. What best describes your role in your organisation?

a. Owner, partner, principalb. CFO / CIO / CTOc. Director/managerd. VPe. Professionalf. Other corporate managementg. Project managerh. Customer servicei. Other



SECTION 2

Competitive Environment

AGDMedia



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Competitive Environment

Monthly Consumer Spending

Food&Drink

Clothing

Durables

Home

Furnishings

Health&Beauty

Medical

Footwear

LeisureGoods

LuxuryGoods

Otherspending&

Investments

% % % % % % % % % %

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

Disposable Income and Discretionary Spending (together with the consumers’ own assessment of future trends)is measured during Consumer Surveys when consumers were asked specific psychometric questions whichtested and cross-checked the issues mentioned here. The data above is derived from statistically accurate social/ income group, and full age spectrum, surveys.

Whereas in developed countries the Value Proposition of many brands have suffered in recent yearsfor a variety of reasons, in many developing country markets the Value Proposition of many brandedproducts have survived intact. Many consumer durables have seen their perceived worth diminishedduring the last decade or so in North America and Europe. This is due to both the popularization of

the brands which make them less exclusive, and because they are perceived to be less costly tomanufacture and less durable. Some formerly high end brands have suffered for these reasons.



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There are psychological reasons which currently make developing country markets more durablethan, for example, the United Sates or the United Kingdom markets and that is the general neurotic1 (and sometimes psychotic) psychology of fashion and luxury goods consumers in some countries.The increasingly neurotic nature of some of these customer bases is tending to divert expenditureaway from fashion into other neurotic activities.

In, for example the United Sates and the United Kingdom, neurotic behaviour patterns haveincreasingly led sections of the population to succumb to eating disorders (which has led to obesity)and impulsive disorders like drinking alcohol to excess. This has caused a rapid rise in over-weightpeople (over 50% of the adult female population in the United Sates and the United Kingdom areover-weight) and clinical obesity (over 35% of the adult female population in the United Sates andover 25% of the adult female population in the United Kingdom are clinical obese). This means thatthese individuals find it increasingly difficult to interact and interface with fashion products and as aconsequence they do not perceive themselves to be capable of engaging with much of the fashionindustry.

Neuroses play an important part in the purchasing behaviours of consumers, especially with fashionand luxury goods, and these neuroses represent both opportunities and threats to fashion productmanufacturers and retailers.

The good news for fashion product manufacturers and retailers is that a neurotic customer basemakes it relatively easier for retailers to loosen the purses of buyers; the bad news is that a neuroticcustomer base has a short attention span and is prone to be irrationally diverted to other neuroticactivity.

1 The terms neurosis and psychosis are used in their clinical context. The symptoms as described as follows:-

There are many forms of neurosis: obsessive-compulsive disorder, anxiety neurosis, hysteria, and a very wide variety ofphobias as well as obsessions. Effects of neurosis can involve anxiety, sadness or depression, anger, irritability, mentalconfusion, low sense of self-worth, et cetera; behavioural symptoms such as phobic avoidance, vigilance, impulsive andcompulsive acts, lethargy, et cetera; cognitive problems such as unpleasant or disturbing thoughts, repetition of thoughts andobsession, habitual fantasizing, negativity and cynicism, etc. Interpersonally, neurosis involves dependency, perfectionism,feelings of isolation, socio-culturally behaviours, et cetera.

Individuals who score high on neuroticism are more likely than the average to experience such feelings as anxiety, anger, envy,guilt, and depressed mood. They respond more poorly to environmental stress, and are more likely to interpret ordinarysituations as threatening, and minor frustrations as hopelessly difficult. They are often self-conscious and shy, and they mayhave trouble controlling urges and delaying gratification. Neuroticism is a risk factor for the "internalizing" mental disorders suchas phobia, depression, panic disorder, and other anxiety disorders (traditionally called neuroses). Research has found that awide range of clinical mental disorders are associated with elevated levels of neuroticism compared to levels in the generalpopulation. Disorders associated with elevated neuroticism include mood disorders, such as depression and bipolar disorder,anxiety disorders, eating disorders, schizoaffective disorder, dissociative identity disorder, and hypochondriasis. Mooddisorders tend to have a much larger association with neuroticism than these other disorders. The remaining personality

disorders had either modest positive or non-significant (in the case of narcissistic and histrionic) associations with neuroticism.

Research has consistently found that on average, women score moderately higher than men on neuroticism. A studyexamining gender differences in big five personality traits in 55 nations found that across nations the most pronounced genderdifference in personality was in neuroticism. In 49 of the 55 nations studied, women scored significantly higher in neuroticismthan men. In no country did men report significantly higher neuroticism than women, although in Botswana and Indonesia, menwere slightly higher than women. Gender differences in neuroticism within nations ranged from very small to quite large. Thedifferences were moderate to large in 17 countries, and small to moderate in 29 countries. In only seven countries -Bangladesh, Tanzania, Ethiopia, Greece, Japan, Botswana, and Indonesia - were they negligible. African and Asian/South Asian world regions tended to have smaller sex differences in personality overall than did western world regions (Europe, andNorth and South America). Differences in the magnitude of sex differences between world regions were due to differencesbetween men in these respective regions. That is, men in western world regions were lower on neuroticism compared to men in African and Asian/South Asian world regions. Women, on the other hand tended not to differ in neuroticism across regions.Gender differences were also positively associated with measures of human development, that is, a long and healthy life,access to knowledge and education, and decent standards of living. Sex differences became more pronounced in countrieswith higher levels of human development. It is speculated that resource poor environments (that is, countries with low levels ofdevelopment) may inhibit the development of gender differences, whereas resource rich environments facilitate them. This maybe because males require more resources than females in order to reach their full developmental potential. Evolutionarytheories suggest that gender differences in neuroticism developed because men have evolved to be more risk taking whereaswomen have evolved to be more cautious and hence more anxious and avoidant when faced with danger.



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Market Opportunity

Analysis of the development of the retail trade and its life cycle

The choice of route to the market has opportunities and pitfalls, product and brand superiority is anobvious competitive advantage which can be re-enforced through firm control of the retail channels.However products and brands superiority is a medium and long-term strategy which can be unstableand may be subject to short-term set-backs. Clearly strong brands with real product benefits have thebest competitive advantage, and for this reason the long-lived brands have consistently invested inbrand equity.

The low transaction cost routes to the market have clear benefits, but may suffer from sustainabilityproblems as the concept adopted is easy and inexpensive to replicate by competitors. The majority offoreign brands operating in any one country tend to choose the Medium Added Value and MediumTransaction Costs routes to the market as these are tested and known. However the use of novel and

innovative channels of distribution are being increasingly explored by the brand leaders. Newcomersare less inhibited (than the entrenched brands) in trying and testing new distribution channels andoften new brands can achieve improved market penetration through imaginative distribution policiesand tactics.

The task of any brand seeking to enter these markets is to achieve an alignment with the distributionand a synergy with consumer buying behaviours and expectations.

Analyse consumer buying behaviours Evaluate consumer ‘Shopping Experience’ criteria Identify consumer channel preferences Correlate consumer channel usage with purchasing criteria Provide flexible and adaptable retail channel options Observer changes in consumer buying behaviours Adapt and respond to consumer buying behaviours

The above considerations are of course an analogy of the life cycle of particular channels. Failure torespond and adapt in the above manner will inevitably result in the premature shortening of the lifecycle of any particular channel.

The purchasing criteria of consumers will be recognisable, and have been specified in other sectionsof this study. The basic criteria are inevitably the same in most of the countries:-

Price Availability Brand Quality Shopping experience Store Personnel Store appeal Promotional actions Et cetera

How these criteria then interact with particular channels is the important issue; as is how these criteriaand the individual channel can be correlated and manipulated to maximise Added Value and minimiseTransaction Costs.



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Added Value and Transaction Costs across the Supply Chain

OwnedExclusive

BrandSto

res

NationalB

rand

Licensing

RetailFranc

hising

Sellingv

ia

Exclusive

Distributors

Multi-Brand

Retail

Stores

DirectSelli

ngto

Independ

ent

Retailers

Consumer

Party

Plan

SocialNetwork

SalesTac

tics

Telemarke

ting

eComme

rce

Markets AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

AV = Added Value : TC = Transaction Costs : H = High : M = Medium : L = Low



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Retailers per 10,000 inhabitants

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Trade Area #1Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

Store Revenue per Square Meter per annum (US$)

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15



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Average Revenue per Store per annum (‘000)

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10


Trade Area #13

Trade Area #14

Trade Area #15

Average Store Sales Area (Square Meters)

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15



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Existing Distribution Channels

Wholesale-Domestic

owned&contro

lled

Wholesale-For

eign

controlled

Wholesale-Joint

Ventures

Wholesale-Oth

er

Retailer-Dome

stic

owned&contro

lled

Retailer-Foreig

n

controlled

Retailers-Joint

Ventures

Retail–Internet&

Others

Markets % % % % % % % %

Trade Area #1

Trade Area #2


Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10


Trade Area #13

Trade Area #14

Trade Area #15



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New Distribution developments

Multiple-Channel Development

Developing a Multi-Channel approach to the consumer is often very effective and allows:-

Efficient access to each market segment

Increased market coverage

Lower channel cost

Opportunities for targeted and customised selling

More precise control of channels

The introduction of Complementary Channels, each of which targets different product orconsumer segments.

Competitive Channels where more than one channels competes for the same consumersegment. This permits dynamic pricing tactics, promotional opportunities and better inventory

management mechanisms.

Multi-Marketing & Social Networking

Developing a Multi-Marketing & Social Networking approach to the consumer can help access nichemarkets:-

Direct selling an Party Plan to access specific demographics (Married women, Older women,women in rural locations)

Telemarketing which can access Housewives and women at their work place.

Social Network integration with mobile applications to promote specific events and ‘shoppingexperiences’ for the younger demogr aphics.

e-Commerce & M-Commerce

The effective application of e-Commerce and then Mobile Applications will increasing become veryimportant in the marketing mix of all brands.



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Online Shopping – Purchases per month

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

The data above is derived from statistically accurate social / income group, and full age spectrum,surveys.



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Distribution Policies & Strategies

Distribution Strategies for consideration

ExclusiveDistributor

Non-ExclusiveDistributor

SelectedWholesaleDistribution

Intensiv

eDistributiontoprovide

Directs

upplytoSelectedRetailers

Intensiv

eDistributiontoindependent

Multi-ch

annelDistribution

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

The above distribution strategies are used by the currentplayers in each of the country markets. Each distributionmethod needs to be analysed in depth to understand theimplications.

Exclusive Distribution advantages include: Maximised control over service level Control of costs Enhanced brand equity Enhanced margins Control of tied retailers Improved independent retailer loyalty Improved ERP and inventory control Improved merchandising controls Improved forecasting and market

reaction time Market power and influence

Exclusive Distribution disadvantages: Risk in reliance on an exclusive

distribution system Mainly geared to big brand, high price,

high margin and low volume products

Intensive Distribution advantages include:- Potentially increased retailer sales Wider consumer recognition Enhanced product exposure

Intensive Distribution disadvantages:- Applicable to low price, low-margin

high street brands Products require constant refreshing

and high stock turn Difficulty controlling brand image

Selective Distribution advantages: Better market coverage than exclusive

distribution More control and less cost than

intensive distribution Concentration on productive outlets Carry full product line Provide superior services

Selective Distribution disadvantages: May not cover the market adequately

Potential errors in distributor selection



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Adaption of DistributionStrategies

Channel Control Strategies

BetterknowledgeofConsumerbuyinghabits

BetterattentiontoCustomerexpectations

MoreattentiontoCompetitor’sproductofferin

gs

Betterselectionofretailoutlets&locations

Improvementof‘StoreExperience’

MoreattentiontoBrandEquity

Increas

evolumelevelofsales

MoreattentiontotheMarketingMix

VerticalMarketingSystem(VMS)

ERPmethodology

Firmce

ntralcoordination

Profess

ionalManagement

Programmednetworksystems

Useofinnovativemarketingchannels

Definiti

onsofcorporate,administrativeandco

ntractual

Horizon

talMarketingSystem

Symbio

ticmarketing

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

The Trading Areas marked with an X indicate the need for the distribution strategies to be analysed indepth to understand the implications.



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Purchasing power

NationalWholes

alers

RegionalWholesalers

IndependentWh

olesalers

Agents&Jobbe

rs

NationalRetailers

RegionalRetaile

rs

IndependentRetailers

MailOrder

Catalogue

Online

Trade Area #1

Trade Area #2

Trade Area #3


Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11


Trade Area #14

Trade Area #15

S = Substantial : M = Moderate : L = Limited : N = None

Purchasing power is defined by the relative discounts and terms of payment achieved that each levelof the supply chain can achieve when negotiating with their suppliers. In general the distribution andretail buyers can usually negotiate more advantageous terms with suppliers from Asia than withsuppliers from North America or Europe.



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Retail Trade Life Cycle and Developments

Brand Development in the Retail Trade

GlobalBrands

NationalBrands

NicheBrands

DiscountBrands

Retailers’OwnBrands

RegionalBrands

Unbranded&Generic

MailOrderBrands

CatalogueBrands

OnlineBrands

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

S = Substantial : M = Moderate : L = Limited : N = None



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Future Prospects and Development of the Retail Trade

The future of the Retail Trade in shown in the market research data for Poland and the variousmarkets covered.

City and Town analysis

The Research focuses on the Retailers in the Major Cities in the country (Poland). A full list of thecities and towns in the database can be found here:


The overall Market Data covers each of the Poland major towns and cities can be found here:

Market Data Major Towns

Detailed Market Data covers each of the Poland major towns and cities can be found here:

Detailed Market Data Major Towns

http://www.dg-di.eu/BASE_FOLDERS/xls/CTM.xls


http://www.dg-di.eu/-%20BASE_FOLDERS/MarketResearch/MR_TOWN_MARKET.htm






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Wholesaler, Trade Buyer, Retailer and Store Performance Surveys

Products

Product Group #1Product Group #2

Product Group #3

Product Group #4

Product Group #5

Product Group #6

Product Group #7

Product Group #8

Product Group #9

Product Group #10

Product Group #11

Product Group #12

Product Group #13

Product Group #14

Product Group #15

Operations

1. Brand Management2. Product Management

3. Marketing & Selling Activity

4. Store Presentation & Merchandising

5. Product Offering Specifications & Characteristics

6. Product Quality Control

7. Design Research & Development

8. Customer Handling

9. Product Sourcing & Control

10. Financial Controls

11. Staff Training / Control & Relations

12. Product Throughput Capacity & Control

13. Supply System Control & Development

14. Distribution Control




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Buyers &

Consumers

1. Wholesalers

2. Trade Buyers

3. Retailers

4. Consumers

5. Consumers Age: <19

6. Consumers Age: 19-24





11. Consumers Age: 65+12. Consumers Social Group: AB

13. Consumers Social Group: C1


15. Consumers Social Group: DE

Trading Area

1 Poland2 Mazowieckie

3 Śląskie

4 Wielkopolskie

5 Małopolskie

6 Dolnośląskie

7 Łódzkie

8 Pomorskie

9 Lubelskie

10 Podkarpackie


12 Warsaw

13 Zachodnio-Pomorskie


15 Świętokrzyskie



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Competitors

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11


Competitor #14

Competitor #15

These surveys cover the Markets, Products, Competitors, Operations and Product Flows in terms ofthe Suppliers, Distributors, Retailers, and End Users. Please read the Definition & Notes first.

http://www.dg-di.eu/BASE_FOLDERS/MarketResearch/MR_SURVEY_DEFI.htm

Distribution Channel Surveys

Surveys of Supply Chain & Distribution Channels Members:


Buyers & Consumers Distribution Channel Surveys Decision Makers

Competitors Distribution Channel Surveys on Competitors

Operations Distribution Channel Surveys on Operations

Products Distribution Channel Surveys on Products

Trading Area Distribution Channel Surveys for the Trading Area






http://www.dg-di.eu/BASE_FOLDERS/xls/SU5A.xls


http://www.dg-di.eu/BASE_FOLDERS/xls/SU5C.xls


http://www.dg-di.eu/BASE_FOLDERS/xls/SU5O.xls


http://www.dg-di.eu/BASE_FOLDERS/xls/SU5P.xls


http://www.dg-di.eu/BASE_FOLDERS/xls/SU5T.xls











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Decision Makers Surveys

Surveys of Trade and Consumer Decision Makers:


Buyers & Consumers Decision Makers Surveys

Competitors Decision Makers Surveys for Competitors

Operations Decision Makers Surveys for Operations

Products Decision Makers Surveys for Products

Trading Area Decision Makers Surveys for Trading Area

Industry Performance

Surveys of Industry & Retailer Performance:


Buyers & Consumers Industry & Retailer Performance Surveys Decision Makers

Competitors Industry & Retailer Performance Surveys on Competitors

Operations Industry & Retailer Performance Surveys on Operations

Products Industry & Retailer Performance Surveys on Products

Trading Area Industry & Retailer Performance Surveys for the Trading Area

The surveys are best viewed as a graphic representation and users should use the normal facilities inExcel to render the Excel spreadsheets as a graphic.

To understand the format and structure of these Surveys please consult the following schematic andSurvey Definitions




































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Value by Product Sectors

Poland Market Values in US$ - Historic from 1997. Forecast to 2028

Market Values at Producer Prices

Poland Market in US$ - Historic from 1997. Forecast to 2028

Market Sectors at Producer Prices

City / Town Market Value

The overall Market Data covers each of the Poland major towns and cities can be found here:

Market Data Major Towns

Detailed Market Data covers each of the Poland major towns and cities can be found here:

Detailed Market Data Major Towns

http://www.dg-di.eu/BASE_FOLDERS/xls/M0M.xls






http://www.dg-di.eu/BASE_FOLDERS/MarketResearch/MR_TOWN_MARKET.htm








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Consumer Attitudes

Products

Product Group #1

Product Group #2

Product Group #3

Product Group #4

Product Group #5

Product Group #6

Product Group #7

Product Group #8

Product Group #9

Product Group #10

Product Group #11

Product Group #12

Product Group #13

Product Group #14

Product Group #15

Operations

1. Brand Management

2. Product Management
















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Buyers &

Consumers

1. Wholesalers

2. Trade Buyers3. Retailers

4. Consumers







11. Consumers Age: 65+

12. Consumers Social Group: AB




Trading Area

1 Poland

2 Mazowieckie3 Śląskie

4 Wielkopolskie

5 Małopolskie

6 Dolnośląskie

7 Łódzkie

8 Pomorskie

9 Lubelskie

10 Podkarpackie


12 Warsaw13 Zachodnio-Pomorskie


15 Świętokrzyskie



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Competitors

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11


Competitor #14

Competitor #15

These surveys cover the Markets, Products, Competitors, Operations and Product Flows in terms ofthe Suppliers, Distributors, Retailers, and End Users. Please read the Definition & Notes first.

Consumer Surveys

Surveys of Consumers and Buyers:

Consumer Surveys

Buyers & Consumers Consumer Surveys Decision Makers

Competitors Consumer Surveys on Competitors

Operations Consumer Surveys on Operations

Products Consumer Surveys on Products

Trading Area Consumer Surveys for the Trading Area






















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Surveys of Industry & Retailer Performance:Industry Performance






The surveys are best viewed as a graphic representation and users should use the normal facilities inExcel to render the Excel spreadsheets as a graphic.

To understand the format and structure of these Surveys please consult the following schematic andSurvey Definitions





















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Competitive Factors

Retail Brands

The Survey results in this report cover the following Retail Brands in Poland:-

Type

BrandResearch

DataAvailable

Competitive

Stance

Stores

Revenues

SellingSpace

SqM

%MarketShare

Retailers

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

LB = National Brand : RB = Regional Brand : GHS = Global High Street : GLux = Global Luxury

G/DS = Generic brands



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Brands Price Differentials

TradeArea#1

TradeArea#2

TradeArea#3

TradeArea#4

TradeArea#5

TradeArea#6

TradeArea#7

TradeArea#8

TradeArea#9

TradeArea#10

TradeArea#11

TradeArea#12

TradeArea#13

TradeArea#14

TradeArea#15

Retailers % % % % % % % % % % % % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The Price Differentials shown here are Purchasing Power Parity weighted.

How to interpret this data

Price differentials do not entirely depend on the actual monetary price of a product, but more on thePurchasing Power Parity. This means that the actual monetary cost of the product in any particularcountry has to be weighted with the average wage levels in that country to thereby produce theaverage purchasing power parity. The data shows that in order to purchase a particular product aconsumer in low wage rate country will have to expend a greater proportion of his purchasing powerthan a consumer in a high wage rate country. Another way to interpret the data is to consider thatthere is a demographic shift whereby in lower wage rate countries the purchasing demographic of anyparticular product move further up the social scale when compared with high wage rate countries. Inaddition in lower wage rate countries the products will take longer to achieve the same level of marketpenetration as is found in high wage rate countries. As an extension of this one can see the relativeprice differential of the brands when sold in other countries.



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Product Price Differentials

Product

Groups TradeArea#1

TradeArea#2

TradeArea#3

TradeArea#4

TradeArea#5

TradeArea#6

TradeArea#7

TradeArea#8

TradeArea#9

TradeArea#10

TradeArea#11

TradeArea#12

TradeArea#13

TradeArea#14

TradeArea#15

Product Group #1

Product Group #2

Product Group #3

Product Group #4

Product Group #5

Product Group #6

Product Group #7

Product Group #8

Product Group #9

Product Group #10

Product Group #11

Product Group #12

Product Group #13

Product Group #14

Product Group #15

The Price Differentials shown here are Purchasing Power Parity weighted.



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Product Value Positioning

Product Groups

ProductGroup#1

ProductGroup#2

ProductGroup#3

ProductGroup#4

ProductGroup#5

ProductGroup#6

ProductGroup#7

ProductGroup#8

ProductGroup#9

ProductGroup#10

ProductGroup#11

ProductGroup#12

ProductGroup#13

ProductGroup#14

ProductGroup#15

Retailers

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

Ranking: Upscale 1-2 Mainstream 3-6 Economy 7-9



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Product Pricing

Price

Discounting Low Price

Market Median

Price High Price

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Product Quality

Basic Quality Median Quality High QualityPremiumQuality

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Product Specifications

Low Product

Specification

Undifferentiated

Product Differentiated

High

Specification

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Product Target Audiences

No TargetAudience

Some Targeting Highly TargetedSpecific

Audience

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Product Volumes

High VolumeMedian

VolumesLow Volume

RestrictedVolume

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Product Utility

Necessity

Product

Common

Product

Discretionary

Product Luxury Product

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Product Maintenance

Frequent

Cleaning

Average

Cleaning

Infrequent

Cleaning

Specialist

Cleaning

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Product Merchandising

Simple

Merchandising

Display

Merchandising Featured

Complex

Proposal

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Product Advertising

BasicAdvertising

FeatureAdvertising

TargetAdvertising

ComplexAdvertising

Retailers

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Brand Positioning Tactics & Strategy

Current Tactical Brand Model

Price Product Place Promotion

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Strategic Brand Objectives

Brand name Product DesignShopping

experienceAdvertising

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Functional Positioning - Symbolic Positioning - Experiential Positioning

Functional Symbolic Experiential Unknown

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys..



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Customer Value Propositioning

Benefits Differentiation Resonance Experience

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Value Concept & Positioning

Average Value Good Value Excellent Value Unspecified

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Brand Differentiation Propositions

Me TooSome

differenceDifferent Unique

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Key Selling Messages

Value Product Brand Status

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from trade surveys.



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Communications Tactics

Salespromotions

Public relationsGeneral

advertisingDirect

marketing

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Advertising Tactics

Price Product Inclusiveness Exclusivity

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Media & PR Tactics

Brochures &print

Press releases Audio-Video Press Kits

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Web & Online Tactics

Very visible VisibleNot really

visibleUnspecified

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Point of Sale Tactics

Average POS Good POS Excellent POS Unspecified

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Merchandising

AverageMerchandising

GoodMerchandising

ExcellentMerchandising Unspecified

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13





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Product Display

AverageProduct Display

Good ProductDisplay

ExcellentProduct Display

Unspecified

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Market Entry Management Factors

Distribution

Brands differentiate themselves in terms of price, quality and design. For the purposes of the rest ofthis section branded products will be categorised as:

High priced brands: These global brands are committed to luxury, style, and quality.

Middle range brands: These brands bring trends to the high street; they are design-led and

are sold at high street prices.

Low cost brands: Low cost brands offer contemporary designs and current trends at low

prices, especially distributed in department stores and supermarkets.

Retail Level

There are three types of retailers: Vertically-integrated Retailers; Independent Retailers; andDepartment Stores.

Vertically-integrated retailers operate wholly-owned retail outlets and sell only the brands

selected by that company. Vertically-integrated retailers tend to have an international

presence. Many high range designer brands, middle range high street brands and low cost

brands are vertically integrated. They are located on main streets and in shopping centres; in

addition high range brands and middle range high street brands sell their ranges indepartment stores.

Independent retailers sell a selection of brands and are independent of the brands they sell.

Independent retailers can take many forms. Their stores tend to sell middle range high street

brands, however some may sell high range designer brands. Independent retailers tend to

specialise in one type of product category, and generally provide their customers with more

choice and variety for those categories. Independent retailers may own and operate a chain

of stores under a common fascia and are typically known as “branded resellers”. Other

independent retailers may be small local boutiques. Independent stores are mainly located on

the main shopping street in towns and cities and in shopping centres.

Department stores are quite different. They sell a wide variety of products from clothing tohome-wares, and electrical appliances to cosmetics. In terms of branded products,

department stores tend to sell high range brands and/or middle range high street brands; low

cost brands are rarely sold in department stores. Department stores are generally located in

central locations in cities and large towns.

A department store is a hybrid retailer. As detailed in subsequent paragraphs, brandedproducts are available in their stores from vertically-integrated companies locating in the storethrough a “concession” arrangement and/or is “own-bought” and resold by the storesthemselves. A few department stores also sell own-brand labels.

Concession arrangements occur where vertically-integrated branded companies have an

agreement to sell in a dedicated area of a department store. Many of these are the samebrands sold in high street vertically-integrated stores. In effect, the department store is the



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concessionaire’s landlord and earns a rent or commission from the concession. Therefore,the department store has less risk as it does not own the concessionaire’s stock, i.e., it is nota reseller. However, a department store’s commission is affected by fluctuations in sales. Theactual stock and the profit from sales, excluding the commission, belong to the “concession”,i.e., the vertically-integrated brand.

Own-bought products are branded items purchased by the department store from themanufacturer or its agent or distributor for resale. For own-bought products the departmentstore bears the risk. Own-bought retailing is therefore similar to the arrangement described forindependent stores, where a selection of brands is sold in the same store; the differencebeing that independent stores typically specialise in one type of product category, whereasdepartment stores sell different types of product categories.

Although products may be retailed through department stores under different arrangements, itis not obvious to the consumer which brands operate under each arrangement, i.e., whetherthe brand is sold under a concession or own-bought arrangement, as their presentation isseamless. The percentage of branded products that is own-bought versus concession variesacross department stores.

Brand Competition

At the retail level brand competition tends to differ by type of retailer. Vertically-integrated internationalbrands compete at a high level by promoting their branded product internationally.

Independent retailers and department stores compete through the range of brands and products theystock in their stores, and by building store image. In order to get the brands they want into their store,department stores further compete on the commission rate, location in store and merchandising.Branded reseller chains, for example, sports retailers, also compete on store reputation through storeadvertising and promotions etc. Department stores compete on store image by creating a “shoppingexperience” and through promotional activity to attract footfall.

The past decade has seen a big increase in the number of brands available, especially in terms of thelocation density of the global brands.

Value

Retailers within the same product categories compete on value, i.e., the combination of price, designand quality. Retail competition tends to start with competition among different brands within the samerange, be it high range, middle range or low cost. Once a brand positions/markets itself within one ofthe product categories, it competes mostly with other brands within the same range by pricing at a

level that reflects the quality, design and brand image that has been created.In terms of pricing, vertically-integrated retailers operate a system of national pricing and thus at aretail level compete more on quality of service, shop fit etc. Vertically-integrated brands areincreasingly also offering on-line shopping.

Low cost brands primarily compete on price by offering contemporary designs at low prices. Theultimate goal of these brands is to set their prices low. Consumers are looking for value for moneywhen purchasing these brands.



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Location

Location is of critical importance in retail. In most countries, despite the growing number of out of townshopping centres, the main street is still a major draw for retailers. Thus, there is demand andcompetition among all retailers for prime main street locations.

Vertically-integrated international brands sold throughout the world and the outlets of these brandsare similar in design and layout. Independent retailers and department stores can differ somewhat indifferent areas.

Although the international brands enjoy economies of scale, local conditions in each country are oftenquite different, and local retailers can often profit by being more orientated to local markets. Retailersoperating in some countries tend to have larger selling areas and therefore can offer a broaderproduct range.

Supply Chain

The supply chain and, in particular, distribution for each type of retailer and supplier, tends to vary.Vertically-integrated branded companies supply products internally to retailers, while other brandcompanies supply products through wholly-owned wholesalers, agencies or third party distributors.

Products are typically designed by the brands themselves and manufactured mostly in the Far East,and sometimes in Europe or South America. In certain instances, the manufacturer is owned andoperated by the brand and in other instances it is outsourced by the brand. Some brands use buyingteams or groups to source their products around the world and are not aligned to, or contracted, withany manufacturer; they may also have different buying teams for different markets. Occasionally,brands outsource part of their manufacturing operations to distributors.

Vertically-integrated branded retailers and concessions in department stores source their productfrom their parent company. Vertically integrated brands internalise the supply, wholesale and retailaspects of their supply chains. The retailers and wholesalers are part of the branded company andoperate under the instruction of the parent company. The brand supplies its products to its stores andconcessions in department stores. There is no intermediary or third party involved in the supply chain.

Own-bought product suppliers to independent stores and department stores, use wholly-owneddistributors, agencies and/or third party distributors in each country. Which avenue a supplier takesultimately depends on how the branded company wishes to operate its distribution and the benefits orservice each distribution type can offer.

Large multinational brands tend to have wholly-owned wholesalers based in the larger countries.Some brands have two separate wholly-owned wholesalers for each Trading Area; others have onewholly-owned wholesaler for the two jurisdictions. In some cases, rather than an office, the brand hasa country representative, an employee of the brand, to manage the supply. Most wholly-owned

wholesalers use selective distribution arrangements, i.e., supply to a number of different independentstores and department stores. For example, a wholly-owned wholesaler may supply that brand’s retailchain plus to other distribution chains. In the case of some brands, there may be an exclusivedistribution arrangement whereby one retailer and its stores, or a chain, receives exclusivity for theproduct in the country.

Some brands distribute through independent agents. The agent places the order to the brand onbehalf of the retailer and receives a commission in return for placing the order. The agent does notbuy the product and, therefore, in some sense the agent is an arm of the brand. Retailers maynegotiate terms and prices either with the agent or the branded supplier; at what level the retailernegotiates terms varies depending on retailer size. Most agents distribute more than one brand.Branded companies and retailers tend to prefer not to deal with a “middle man”, therefore, these typesof agency agreements are rarely found in the market.

Some brands distribute their product through third party distributors. Third party distributors buyproducts from the brand and resell it to retailers in the country, i.e., they are the customers of thebrand and have an account with them. Therefore, third party distributors take on a business risk. For



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example, Distribution downstream to the retail level can be either an exclusive or selectivearrangement. However, given the preference of not dealing with a “middle man” distributors are rarelyfound in the market. Most of the brands sold through third party distributors are lesser known brands.

Nature of Competition

Ultimately suppliers compete for consumer demand by building brand awareness and throughinteractions with retailers. However, some suppliers compete mostly at the brand level. Brandcompetition is a critical feature of competition at supply level. Brands compete by establishing a brandthat reflects the image and category in which they wish to operate; high range, middle range or lowcost. They will also price their product in a way that reflects the category and brand image they havecreated. Where they sell through independent retailers and department stores, they generally chooseretailers whose own image is aligned to that of the brand’s image.

High range brands compete with each other by establishing a desirable brand through

expensive image building mechanisms.

Middle range brands compete with each other through advertising.

Suppliers to low cost retailers (i.e. manufacturers in the Far East and South America etc.)compete on price.

Agencies compete by providing competitive commissions to the brands. Third partydistributors also compete with each other, by the services they offer, guaranteed salesvolume and other commercial activities.

Suppliers also compete in their interactions with retailers, in terms of space, commission, andlocation in the store. For example, concessions in department stores will compete for the best

location in the store, i.e., where there is the most footfall. Suppliers also compete to have theirproducts sold in the signature stores in a city.

Supplier Price Differentials

There are some supplier price differentials in each county and these are usually in the range 1-10%.

This suggests that, despite the rising cost of doing business, the level of competition in most countries(as well as the expansion in the volumes sold) kept prices from rising relative to other countriesexcept when the exchange rates changed significantly.

The 2008 recession and the depreciation of some currencies, coupled together, have significantlyimpacted upon the retail business. Retail sales declined in many countries. Increasing numbers ofretail chains have gone into administration in some areas, due largely to the global economic crisis.

The effect of the price gap between some countries has been that footfall and same brand sales insome countries have reduced significantly due to consumers changing their behaviour, where theeffect is not so significant in other countries.

Consumers’ shopping behaviour has changed in a number of ways: Consumers are reducing thevolume of purchases they are making. Consumers are increasingly buying from discount suppliers.

Consumers are switching. Low cost branded stores do not appear to have been as negativelyaffected as other stores; what they have lost in terms of consumers reducing purchases overall, theyhave gained from consumers switching from mid-range to their low price/high value stores. In

addition, Retailers contend that consumers are switching to retailers that source their product incurrencies less impacted by the exchange rate.



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Retailer Reaction

The exchange rate fluctuations and the global recession have occurred simultaneously and it is

therefore not clear how much of the decline in sales is attributable to the recession and how much tothe exchange rates.

In response, retailers have tried to cut costs by reducing the cost of doing business and the cost ofproduct. They have reduced the cost of doing business by reducing opening hours, working hours andpay.

With respect to cost of product, retailers can either try to renegotiate a price with their supplier, switchsupply by switching brands, or by-pass the current branded supplier and source product from analternative supplier.

The extent of exchange rate pressure and reduced footfall has driven retailers to go back to theirsuppliers, be it the manufacturer, wholly owned wholesalers, third party distributors or an agency,requesting price reductions. Renegotiating prices with suppliers may be difficult due to the seasonality

of retailing and limited buyer power of stores in some countries.Generally, retailers organise their stock for at least the following two seasons, or perhaps even for thecoming year. Thus retailers decide on their stock and volume of purchases between six months to ayear in advance; simultaneously price for the product is agreed typically in US$. In addition, in orderto minimise currency risk, some retailers may hedge their currency at that time. Thus, due to theseagreed prices and volumes, retailers are finding it difficult to renegotiate price with their suppliers.Retailers will, at the time of agreeing price with their supplier, set their retail prices. Given that thismay be done a number of months in advance, by the time product appears on the shelf, exchangerates may have changed. This effect should diminish as retailers purchase the next round of stockwhich will be based on more recent exchange rates.

The ability of a retailer to negotiate price reductions will depend also on its importance to the supplier,i.e., the extent of its buyer power. National retailers are often small in international terms.

Switching brands may not be a possible option if the brand is a “must have” brand for the retailer, forexample, consumers expect all sports stores to have certain international sports brands. It willnegatively affect the retailer’s image if it does not have the must have brands for certain categories ofproducts.

Retailers, independent stores and department stores contend that sourcing product by by-passing thecurrent source of supply, i.e., the wholly-owned wholesaler, third party distributor or agency, isdifficult. They state that the head office or equivalent regional distributor will direct the retailer back tothe designated national distributor. Most international brands use wholly-owned wholesalers, thus thealternative source of supply is simply a different arm of the same company. In some cases retailershave been successful in renegotiating the currency in which they pay, but in most cases this has beenrefused.

Retailers’ attempts to get better prices following currency depreciation may be more difficult in somecountries. Some retailers that operate in several countries may be able to benefit from sourcingproduct for their stores in one country through their supply chain in another country. Thus, anypotential benefits arising from the changes in one currency may be spread across that retailer’ outlets.

For department stores and independent retailers, alternative sources of supply, such as the greymarket, may be an option. However, products from the grey market are seldom the latest design andmay be limited in the range and options it comes in. It also has limitations in terms of consistency ofsupply, and thus may not be an adequate option.

The individual stores of vertically-integrated middle range retailers do not have any alternative optionto source product, as they must source their product internally. Prices in these stores are not set bythe retailer but the head office of the brand and therefore they are constrained by the controlledsupply channel in which they operate. These vertically-integrated brands are large international

brands that operate on a large scale. Any national market is likely represents only a small portion oftheir overall business.



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Some low cost retailers are not experiencing as much difficulty in switching sources of supply asindependent stores or department stores. This is due to the fact that they tend to be vertically-integrated and are not aligned with any one supplier but instead they source manufactured productfrom the Far East based on the best price, design, quality and range. These low cost retailers marketthemselves on price.

Despite the constraints faced by some retailers, they are reacting by re-pricing products, increasingsales/discounts and promotions, and trying to source new products that have more attractive priceand quality characteristics.

Supplier Reaction

Suppliers’ responses to increased pressures from retailers to reduce prices will depend on their abilityand willingness to reduce prices.

Distributors of brands under pressure from retailers to reduce prices will themselves be limited in theirability to reduce prices to the extent that they can renegotiate a price reduction with their upstream

supplier. Brands source product directly from their own, or contracted, manufacturers. This is oftendone in the Far East or other countries and therefore they operate in a number of currencies. Suppliercosts are therefore largely in various exchange rate susceptible currencies. In reality, nationalsuppliers may have a small portion of costs in their own currency and may not be able to pass on thecurrent “expectation” that exists in the market.

In addition, brand companies tend to be vertically integrated upstream through contractedmanufacturers and downstream through wholly-owned retailers and/or distributors; due to this tightdistribution arrangement, the seasonality, and likely hedging aspects of suppliers’ operation, theextent to which they can quickly react to changes in currency fluctuations will be limited.

Overall, suppliers are being negatively affected by falling sales and the depreciation of operatingcurrencies and therefore they do not want to lose revenue in the market as well. Some retailers statedthat the currency depreciation warranted a price increase in their country but that branded companies

would find it difficult to increase prices in that country because of recessionary pressures.

The bigger the market, the riskier it is to increase prices. In addition, branded companies tend tooperate across a number of countries.

Conclusion

Differences in price level between different national markets have to some extent always beenpresent, and changes in the differences in price level arise, amongst other reasons, due to currencymovements. Since 2008 branded goods prices in one country have fluctuated in comparison withother countries. The effect of the pricing changes is driving consumers to change their shoppingbehaviour to the detriment of the majority of retailers. Low cost retailers however have not been asnegatively affected; what they may have lost in terms of reduction in consumer spending they havegained from price conscious consumers switching to them. Among other things, retailers haveresponded by increasing sales/discounts and promotions, and in some instances re-ticketing items tobring down in price.

However, the extent of the response of retailers is limited by the extent to which they can reduce theircosts of doing business, for example, reducing opening hours, and their cost of product. The ability toreduce cost of product is constrained by three elements; the seasonality of the market, limited buyerpower and the ability to switch sources of supply.

Stocks and prices are determined six to 12 months before they appear in store. In most countriesretailers are relatively small internationally.



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and the seasonal pattern of sales continues, all brands have the opportunity to set national

prices in a way that reflects more recent exchange rates.



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Distributors – Market Entry choices

Distributor – Domestic

owned

Distributor – Direct

investment

Distributor –

Joint Ventures

Distributor –other

Market % % % %

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5


Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15




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Distribution Channel: Advantages – Disadvantages

Disadvantages Advantages

Domestic

–

No

Distributioncontrol

Domestic

–

LittleBrand

control

Directinvestment

–

Risk

oflossofinvestment

Directinvestment

–

High

start-upcosts

JointVenture

–

Long

term

risk

Domestic

–

nodirect

investment

Domestic

–

lowerstart-

upcosts

Directinvestment

–

ControlofCosts,Brand,

Distribution

JointVenture

–

Lower

start-upcosts

JointVenture

–

Local

Knowledge

% % % % % % % % % %

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15




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Market Entry options for Domestic Brands

DomesticDistributors-

Non-exclusive


Exclusive

DomesticDistributors

–JointVentures

DirectRetail

Investment

RetailJointVenture

Franchisees

Unspecified

% % % % % % %

Trade Area #1


Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15




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Market Entry options for Established or Global Brands


Non-exclusive


Exclusive

DomesticDistributors

–JointVentures

DirectRetail

Investment

RetailJointVenture

Franchisees

Unspecified

% % % % % % %

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15




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Start-up Costs

Start-up Costs, Initial Investment and Product Launch Balance sheet

Direct and Indirect Market Entry

There are three scenarios examined in the data below, A Brand / Franchise Store launch, and Independent Store launch (probably carrying Branded product lines) and the use of a Distributor or ExclusiveWholesaler to introduce a new Brand to the country concerned.

The data provides the following matrices:-

1) Time from Start to Store Opening

2) Start-up Investment Cost (excluding Inventory)

3) Market Entry Investment, by type of Market Entry, with Economies of Scale:

A Cost comparison given for 1, 3, 5, and 10 stores on the grounds that there may be some cost advantages associated with the economies of scale of opening multiple outlets.

Inventory Costs

The Start-up costs data excludes the initial Inventory investment. This is because there are a largenumber of ways in which Franchised Brands, Independent Retailers, In-Store Departments and salesvia Distributors are financed.

Some Franchised Brands offer Consignment deals, or Sale-or-Return deals, or inventory financing.Similarly there are inventory financing deals available for In-Store Departments.



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Brand Store Start-up Costs

100 SqM

selling space

cost (‘000)

RentalMonth1

PropertyDeposit

Storefitting

Utilities&Deposit

StoreEquipment&

Supplies

BusinessExpenses

ITEquipment&

Services

Banking&Payments

System

Legal&Accounting

Marketing

StoreOpening&PR

Cash-in-Hand

TotalBrandStoreStart-

upCost

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15




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Independent Store Start-up Costs

100 SqM

selling space

cost (‘000)

RentalMonth1

PropertyDeposit

Storefitting

Utilities&Deposit

StoreEquipment&

Supplies

BusinessExpenses

ITEquipment&

Services

Banking&Payments

System

Legal&Accounting

Marketing

StoreOpening&PR

Cash-in-Hand

TotalIndependent

StoreStart-upCost

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15




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Distributor / Exclusive Wholesaler Sign-up Costs

Cost (‘000)

SupportEquipment&

Supplies

BusinessExpenses

ITServices

Banking

Legal&Accounting

MarketingSupport

PublicRelations

Miscellaneous

Distributor/Exclusive

WholesalerSign-up

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15




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Start Times Weeks: Brand Store

InitialContractual

Negotiations

PremisesAcquisition

Regulatory

Requirements

Storefitting

SystemsInstallation

&Stafftraining

LaunchDelay

TotalTime

Weeks

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15




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Start Times Weeks: Independent Store

InitialContractual

Negotiations

PremisesAcquisition

Regulatory

Requirements

Storefitting

SystemsInstallation

&Stafftraining

LaunchDelay

TotalTime

Weeks

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15




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Start Times Weeks: Distributor / Exclusive Wholesaler

InitialContractual

Negotiations

Financial

Arrangements

Regulatory

Requirements

MarketingSupport

SystemsInstallation

&Stafftraining

DeliveryLag&

LaunchDelay

TotalTime

Weeks

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15




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Economies of Scale with multiple Stores

Brand Store

100SqM

Independent Store

100SqM

Brand In-store

Start-up 25SqM

Per outlet

‘000

SingleStore

3Outlets

5Outlets

10Outlets

SingleStore

3Outlets

5Outlets

10Outlets

SingleStore

3Outlets

5Outlets

10Outlets

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15


The data indicates that the cost savings from economies of scale are somewhat variable. This isundoubtedly due to the fact that the practice of the opening of multiple outlets is not consistentbecause the companies undertaking these enterprises are very variable in their methods.

It is the case that the major companies do enjoy significant economies of scale, but these are basedon multiples of several hundred locations. Furthermore, whereas the brand owned outlets may enjoysuch economies of scale the brand owner may not always pass on the entire volume saving to anyfranchisee. Thus the unit cost of shop fittings and furnishings for a 3 store franchisee may only bereduced fractionally if that franchisee were to open 5 stores.

There are some cost savings evident in respect of the shop fitting costs where more than one store isinvolved, and also in the budget for ‘cash-in-hand’; however the cost savings for the othercomponents are not significant and will depend on the negotiation ability of the entrepreneur more

than on any actual reductions for volume.



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Cash Flow, Profit & Loss, Balance Sheet, Project Financial

Analysis

The DataGroup Toolkits contains the following spreadsheets to enable users to produce:-

Start-up financial data is shown above and this forms both the Fixed Capital and Working Capital forthe start-up.

The format of this balance sheet is based on U.S. accounting standards.

See: http://www.dg-di.eu/PureData/Base_PureData/Ch_Chapters/Ch_FIN_DEFI.htm

12 Months Cash Flow Analysis

http://www.dg-di.eu/BASE_FOLDERS/xls/CASH_FLOW.xls

Fr = Forecast : Ac = Actual Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac Fr Ac

'000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000

1 Revenues 0

2 Orders 0

3 TOTAL SALES 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

RECEIPTS

4 Sales receipts

5 Sales debtors

6 Loans / Grants received

7 Miscellaneous income

8 CASH ACCOUNT TOTAL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

9 Capital

10 Asset & other disposals

11 TOTAL RECEIPTS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

PAYMENTS

12 Finished Materials Cost

13 Fuel Cost

14 Electricity Cost

15

Total Input Materials + Energy

Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

16 Payroll Costs

17 Wages

18 Directors' Remunerations

19 Employee Benefits

20 Employee Commissions

21

Total Employees

Remunerations 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

22 Total Rental & Leasing Costs

23 Total Maintenance Costs

24 Services Purchased

25 Communications Costs

26 Miscellaneous Expenses

27 Sub Contractors

28

Total Miscellaneous

Operational Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

29 Total Sales Costs

30

Total Distribution and Handling

Costs

31 Total Advertising Costs

32 Total After-Sales Costs

33

Total Research and

Development Expenditure

34 Interest

35

Added, Import, etc.)

36

etc.)

37 Total Payments 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

38 Net Cash Flow 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

39 Opening Bank Balance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

40 Cash in Bank 0

Month 11 Month 12

CASH FLOW FORECAST

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10

http://www.dg-di.eu/PureData/Base_PureData/Ch_Chapters/Ch_FIN_DEFI.htm










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First 12 months and First 3 years Profit & loss Account

http://www.dg-di.eu/BASE_FOLDERS/xls/PROFIT_LOSS.xls

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10Month 11Month 12 Year 1 Year 2 Year 3

'000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000

1 Domestic Revenues 0

2 Overseas Revenues 0

3 Total Revenues 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

4 Raw Materials Cost 0

5 Finished Materials Cost 0

6 Fuel Cost 0

7 Electricity Cost 0

8 Total Input Materials + Energy Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

9 Payroll Costs 0

10 Wages 0

11 Directors' Remunerations 0

12 Employee Benefits 0

13 Employee Commissions 0

14 Total Employees Remunerations 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

15 Rental & Leasing: Structures 0

16 Rental & Leasing: Plant + Equipment 017 Total Rental & Leasing Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

18 Maintenance: Structures 0

19 Maintenance: Plant and Equipment 0

20 Total Maintenance Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

21 Services Purchased 0

22 Communications Costs 0

23 Miscellaneous Expenses 0

24 Sub Contractors 0

25 Total Miscellaneous Operational Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

26 Sales Personnel Variable & Commission Costs 0

27 Sales Expenses and Costs 0

28 Sales Materials Costs 0

29 Total Sales Costs 0 0 0 0 0 0 0 0 0 0 0 0 0

30 Distribution Fixed Costs 0

31 Distribution Variable Costs 0

32 Warehousing Fixed Costs 0

33 Warehousing Variable Costs 0

34 Physical Handling Fixed Costs 0

35 Physical Handling Variable Costs 036 Physical Process Fixed Costs 0

37 Physical Process Variable Costs 0

38 Total Distribution and Handling Costs 0 0 0 0 0 0 0 0 0 0 0 0 0

39 Mailing & Correspondence Costs 0

40 Media Advertising Costs 0

41 Advertising Materials & Print Costs 0

42 POS & Display Costs 0

43 Exhibition & Events Costs 0

44 Total Advertising Costs 0 0 0 0 0 0 0 0 0 0 0 0 0

45 Product Returns & Rejection Costs 0

46 Product Installation & Re-Installation Costs 0

47 Product Breakdown & Post Installation Costs 0

48 Product Systems & Configuration Costs 0

49 Product Service & Maintenance Costs 0

50 Customer Problem Solving & Complaint Costs 0

51 Total After-Sales Costs 0 0 0 0 0 0 0 0 0 0 0 0 0

52 Total Marketing Costs 0 0 0 0 0 0 0 0 0 0 0 0 0

53 New Technology Expenditure 0

54 New Production Technology Expenditure 055 Total Research and Development Expendi 0 0 0 0 0 0 0 0 0 0 0 0 0

56 Total Operational & Process Costs 0 0 0 0 0 0 0 0 0 0 0 0 0

57 Operating Profit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

58 Depreciation: Structures 0

59 Depreciation: Plant and Equipment 0

60 Depreciation: Miscellaneous Items 0

61 Total Depreciation 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

62 Trading Profit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

63 Interest Paid

64 Non-trading Income

65 Pre-tax Profit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

PROFIT & LOSS ACCOUNT








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1-7 Years Balance Sheet

http://www.dg-di.eu/BASE_FOLDERS/xls/BALANCE_SHEET.xls

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

'000 '000 '000 '000 '000 '000 '000

1 Fixed Assets: Structures

2 Fixed Assets: Plant and Equipment

3 Fixed Assets: Miscellaneous Items

4 Fixed Assets 0 0 0 0 0 0 0

5 Capital Expenditure on Structures

6 Capital Expenditure on Plant and Equipment

7 Capital Expenditure on Vehicles

8 Cap. Expend. on Data Processing Equipment

9 Capital Expenditure on Miscellaneous Items10 Total Capital Expenditure 0 0 0 0 0 0 0

11 Retirements: Structures

12 Retirements: Plant and Equipment

13 Retirements: Miscellaneous Items

14 Total Retirements 0 0 0 0 0 0 0

15 Total Fixed Assets 0 0 0 0 0 0 0

16 Finished Product Stocks

17 Work in Progress as Stocks

18 Materials as Stocks

19 Total Stocks / Inventory 0 0 0 0 0 0 0

20 Debtors

21 Miscellaneous Current Assets

22 Total Current Assets 0 0 0 0 0 0 0

23 Total Assets 0 0 0 0 0 0 0

24 Creditors

25 Short Term Loans

26 Miscellaneous Current Liabilities

27 Total Current Liabilities 0 0 0 0 0 0 0

28 Net Assets / Capital Employed 0 0 0 0 0 0 0

29 Long Term Loans

30 Miscellaneous Long Term Liabilities

31 Shareholders Funds 0 0 0 0 0 0 0

Persons Persons Persons Persons Persons Persons Persons

32 Workers

33 Total Employees

BALANCE SHEET






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10 Years Project Financial Analysis

http://www.dg-di.eu/BASE_FOLDERS/xls/Project_Financial_Analysis.xls

Project Financial AnalysisINPUT SHEET: USER ENTERS ALL BOLD NUMBERS

INITIAL INVESTMENT CASHFLOW DETAILS DISCOUNT RATE

Initial Investment= $150,000 Revenues in year 1= $240,000 Approach(1:Direct;2:CAPM)= 2

Opportunity cost (if any)= $7,484 Var. Expenses as % of Rev= 50% 1. Discount rate = 10%

Lifetime of the investment 10 Fixed expenses in year 1= 0 2a. Beta 0.9

Residual Value at end of project= $100,000 Tax rate on net income= 40% b. Riskless rate= 8.00%

Deprec. method(1:St.line;2:DDB 2 If you do not have the breakdown of fixed and variable c. Market risk premium = 5.50%

Tax Credit (if any )= 10% expenses, input the entire expense as a % of revenues. d. Debt Ratio = 30.00%

Other invest.(non-depreciable)= 0 e. Cost of Borrowing = 9.00%

Discount rate used= 10.69%

WORKING CAPITA L

Initial Investment in Work. Cap= $15,000

Working Capital as % of Rev= 25%

Salvageable fraction at end= 100%

GROWTH RATES

1 2 3 4 5 6 7 8 9 10

Revenues Do not enter 10.00% 10.00% 10.00% 10.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Fixed Expenses Do not enter 10.00% 10.00% 10.00% 10.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Default: The fixed expense growth rate is set equal t o the growt h rate in revenues by default.

YEAR

0 1 2 3 4 5 6 7 8 9 10

INITIAL INVESTMENT

Investment $150,000

- Tax Credit $15,000

Net Investment $135,000

+ Working Cap $15,000

+ Opp. Cost $7,484

+ Other invest. $0

Initial Investment $157,484

RESIDUAL VALUE

Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $100,000

Working Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $87,846

OPERATING CASHFLOWS

Lifetime Index 1 1 1 1 1 1 1 1 1 1

Revenues $240,000 $264,000 $290,400 $319,440 $351,384 $351,384 $351,384 $351,384 $351,384 $351,384

-Var. Expenses $120,000 $132,000 $145,200 $159,720 $175,692 $175,692 $175,692 $175,692 $175,692 $175,692

- Fixed Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

EBITDA $120,000 $132,000 $145,200 $159,720 $175,692 $175,692 $175,692 $175,692 $175,692 $175,692

- Depreciation $30,000 $0 ($4,000) $0 $0 $0 $0 $0 $0 $0

EBIT $90,000 $132,000 $149,200 $159,720 $175,692 $175,692 $175,692 $175,692 $175,692 $175,692

-Tax $36,000 $52,800 $59,680 $63,888 $70,277 $70,277 $70,277 $70,277 $70,277 $70,277

EBIT(1-t) $54,000 $79,200 $89,520 $95,832 $105,415 $105,415 $105,415 $105,415 $105,415 $105,415

+ Depreciation $30,000 $0 ($4,000) $0 $0 $0 $0 $0 $0 $0

- ∂ Work. Cap $45,000 $51,000 ($38,400) $7,260 $7,986 $0 $0 $0 $0 $0

NATCF ($157,484) $39,000 $28,200 $123,920 $88,572 $97,429 $105,415 $105,415 $105,415 $105,415 $105,415

Discount F actor 1 1.10685 1.225116923 1.356020666 1.500911474 1.661283865 1.838792046 2.035266976 2.252735252 2.493440014 2.759864079Discounted CF ($157,484) $35,235 $23,018 $91,385 $59,012 $58,647 $57,329 $51,794 $46,794 $42,277 $106,259

Investment Measures

NPV = $414,267

IRR = 42.43%

ROC = 75.60%

BOOK VALUE & DEPRECIATION

Book Value (beginning) $150,000 $120,000 $120,000 $124,000 $124,000 $124,000 $124,000 $124,000 $124,000 $124,000

Depreciation $30,000 $0 ($4,000) $0 $0 $0 $0 $0 $0 $0

BV(ending) $150,000 $120,000 $120,000 $124,000 $124,000 $124,000 $124,000 $124,000 $124,000 $124,000 $124,000









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SWOT Analysis

SWOT analysis by type of Market Entry

Entry via Company Owned Retail Stores

Strength Weaknesses

Control of Brand

Control of Costs

Control of Profitability

Difficult Learning Curve

High Direct Investment Costs

High Risk of Failure

Opportunities Threats

Direct Contact with Customer Base

Ability to Adapt Products

Ability to Directly Influence Investment Decisions

Inexperience with local conditions

Local competitors

Potential fragility of local management

Entry via Domestic Retail Joint Venture

Strength Weaknesses

Partner’s knowledge of the country

Reduced Direct Investment Costs

Reduced Risk of Failure

Difficult in Finding Partner

Loss of Cost Controls

Reduced Margins & Profit Potential


Joint Development of Customer Base Ability to Adapt Products

Ability to Directly Influence Investment Decisions

Partner’s business policies Market Power of major competitors

Potential fragility of partnership




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Entry via National Franchise Licensee

Strength Weaknesses

Licensee’s knowledge of the country

Reduced Direct Costs

Reduced Risk of Direct Losses

Difficult in finding suitable Licensee

Loss of Geographic Controls

Reduced Margins & Profits


Effective Development of Franchisees

Potential to achieve better market penetration

Ability to Extend Brands and Products

Competitors’ business policies

Market Power of major competitors

Potential fragility of Licensee

Entry via Intensive Individual Franchising

Strength Weaknesses

Control of Brand



Difficult Marketing process

Difficult in finding suitable Franchisees

High Risk of Failure of Franchisees


Better Contact with Customer Base

Ability to Extend Brands and Products Ability to Directly Influence Investment Decisions

Franchisees targeted by competitor

Local brand competitionPotential fragility of Franchisees




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Entry via Exclusive National DistributorStrength Weaknesses

Distributor’s knowledge of the trade



Difficult in finding suitable Distributor




Ability to reach smaller and more remote retailers

Potential to achieve better market penetration

Ability to use Distributor’s local expertise


Possible loss of Brand Equity

Potential fragility of Distributor

Entry via Intensive National Distribution / Wholesaling

Strength Weaknesses

Distributors’ knowledge of the trade



Difficult in controlling Distributors




Ability to reach smaller and more remote retailers

Potential to achieve better geographic coverage

Ability to use Distributors’ local knowledge


Loss of Brand Equity

Potential fragility of Distributors




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Competitive Analysis

Retail Brands

Lo

cations

Br

andstrengths

Operationalstrengths

Sa

les

Pr

oductLines

Br

andquality

Pr

oductdesign

Pr

oductcriteria

Pr

icingstructure

Marketingactivities

Pr

oductsupplysources

Ex

pansionplans

Cu

stomerservice

Retailers % % % % % % % % % % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Market Penetration Prospects

Advancing into the target markets

Relative difficulty

Low Moderate High

Markets % % % % %

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

The data above is derived from country surveys.



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Brand Concept

A brand is defined as: “A name, term, sign, symbol, or design, or combination of them, intended toidentify the goods and services of one seller or group sellers and to differentiate them from those of

competitors.” Branding thus is a means to distinguish one product from another and these differences may befunctional, rational, or tangible and fundamentally related to product performance of the brand.

In the developing countries a ‘Brand’ is frequently no more than a European sounding name on acopy of some European design. This use of facsimiles by developing country producers has shownthe limitations of their business models.

It is necessary to distinguish a Brand from a Label. Labels or Own-Brand Labels tend to be genericor standard products which simply bear the label or identification of a supermarket or some otherretailer. In general labels do not have the same status as brands in the mind of consumers, albeit thequality and designs may have little differentiation; however consumers expect labels to have lowerprice as than brands.

Brand Equity

Brand equity is intangible added value endowed to products and services. This value may bereflected in how consumers think, feel, and act with respect to the brand, as well as the prices andprice premiums demanded by a brand, market share, and ultimately the profitability that the brandcommands for the firm. Brand equity is an important intangible asset that has image and financialvalue to the firm. In the regional markets there is no extended history of brand image creation and it isfor this reason that developing country companies have to be particularly attentive to the

enhancement the brand equity of their products.



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Customer Based Brand Equity

Customer based brand equity can be defined as the differential effect that brand knowledge has onthe consumer response to the marketing of that brand. Positive customer based brand equity is whenconsumer react more favourably towards a branded product than to competitive products. Regionalbrands can use the attitudes and perceptions of the customer base to increase customer based brand

equity. These perceptions may be, for example, the tendency for older demographics to be moreconservative or chauvinistic.

Brand Knowledge

Brand knowledge consists of all the thoughts, feelings, images, experiences, beliefs, and so forth, thatbecomes associated with the brand. In particular, brands must create strong, favourable, and uniquebrand associations with the target customer base. Brand knowledge is low in many developingcountry markets and this presents opportunities to new brands entering those markets.

Substantial Brand Knowledge & Awareness – All Brands

% Social GroupAwareness

% Age Group Awareness

AB C1 C2 DE < 19 19-24 25-34 35-44 45-54 55-64 65+

Market % % % % % % % % % % %

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

Brand knowledge and awareness is assessed during Consumer Surveys when consumers wereasked specific questions to test the strength of their awareness of named brands. The data above isderived from statistically accurate social / income group, and full age spectrum, surveys.



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Brand Equity Model

Brand Equity can be seen as a group of five categories of the assets and liabilities of a brand that addto or subtract from the value provided by a product or service to a firm and/or to that firm’s customers.

In the regional markets consumer in many markets are relatively unfamiliar with these brand assetsand therefore marketing strategies can be employed by companies to enforce these assets in themind of consumers.

These categories of brand assets are:

1. Brand loyalty

2. Brand awareness

3. Perceptions of quality

4. Brand associations

5. Proprietary assets, patents, trademarks, and distribution channel relationships.

In the regional markets insufficient attention has been paid to these issues and this has generally ledto the lack of global competitiveness of regional brands.



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Substantial Brand Loyalty – All Brands

Social Group Loyalty Age Group Brand Loyalty

AB C1 C2 DE < 19 19-24 25-34 35-44 45-54 55-64 65+

Market % % % % % % % % % % %

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

Brand loyalty is assessed during Consumer Surveys when consumers were asked specifically for thebrands they purchased and then specifically if they would purchase the same brand(s) again. Thedata above is derived from statistically accurate social / income group, and full age spectrum,surveys.



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Substantial Brand Quality – v Price Perceptions – All Brands

Social Group Age Group Brand Quality -v- Price

AB C1 C2 DE < 19 19-24 25-34 35-44 45-54 55-64 65+

Market % % % % % % % % % % %

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

Perceptions of Brand Quality is assessed during Consumer Surveys when consumers were askedspecifically if they believed that the brands they purchased were of a better product quality than otheror cheaper brands and if in general they believed that expensive brands were of a better productquality. The data above is derived from statistically accurate social / income group, and full agespectrum, surveys.



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Brand Knowledge Components

Price

Brand Recall Packaging

BrandAwareness

BrandRecognition

Userimagery

BrandKnowledge

Non-productRelated

UsageImagery

Brand ImageBrand

AssociationsAttributes

ProductRelated

FavourableAssociations

Benefits

Strength ofAssociations

Attitudes

Uniquenessof

Associations

Brand Resonance Components



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Brand Resonance

The brand resonance model also views brand building as an ascending, sequential series frombottom to top.

The Brand Resonance model:

1. Brand Salience relates to how often andeasily the brand is evoked under variouspurchase or consumption situations.

2. Brand Performance relates to how theproduct or service meets the customers’functional needs.

3. Brand Imagery deals with the extrinsicproperties of the product or service,including the ways in the brand attemptsto meet the customers’ psychological orsocial needs.

4. Brand Judgments focus on thecustomers’ own personal opinions andevaluations.

5. Brand Feelings ar e the customers’emotional responses and reactions withrespect to the brand.

Brand resonance refers to the nature of the relationship that customers have with the brand and theextent to which customers feel that they are “in sync” or empathetic with the brand.

Producers in the regional markets have to decide with which brand concept they wish to align. Theycan seek to produce a Global brand or they can seek to produce a Market Segmented brand. Whatcorporate history has suggested is that companies wishing to engage both concepts often fallbetween both stools.



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Qualitative Brand Research

It is necessary to assess the strength as well as understand the nature of the brand’s equity, relativeto competitive brands, and to monitor that over time.

Assessing the strength of brand equity can be done by finding Brand Awareness, Salience, BrandPreference and Brand Users.

Qualitative Brand Identifiers

Salience

Performa

nce

Imagery

Judgmen

ts

Feelings

Style

Acceptan

ce

Styling

Attracted

toGlobal

Brands

Attracted

toLocal

Brands

Market % % % % % % % % % %

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

Brand Resonance is assessed during Consumer Surveys when consumers were asked specificpsychometric questions which tested and cross-checked the issues mentioned here. The data aboveis derived from statistically accurate social / income group, and full age spectrum, surveys.



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Brand Awareness according reflects the extent to which people can either remember or

recognize a brand. When people think about brands in a product category, those come to

mind represent recall brand awareness; they are recalled based only upon a category cue. If

someone is shown a list of brand names or pictures of packages, those that can be identifiedrepresents recognition brand awareness.

Brand Salience depends upon awareness, but reflects the relative strength of that awareness

in relation to the target market’s awareness of other brands in the category. This relationship

will be reflected in the relative relationship between what is known as “top -of- mind”awareness and all the other brands in the category of which someone is aware.

Brand Preference, like brand salience, can be an indicator of the strength of brand equity.

Brands that are preferred are likely to enjoy greater equity than those that are not. Preference

for a niche brand may be high in its market segment, but relatively low in the global market as

a whole.

Brand Users or category understanding is one of the primary functions of quantitative

research and specifically relates to Users of a particular brand vs. users of competitive

brands. Based upon this, one is able to “profile” various user segments.

Marketing communication applied to branded products

The market for branded products in developed countries is a highly competitive market whose maincharacteristics is the similar positioning of a large number of competitive brands and, in this respect,the br and’s image developed by marketing communications can influence the adoption process of theproducts. In the regional markets, especially in the less developed countries, there is not the samelevel of competition and this represents an opportunity for new brand entries.

The marketing stimuli used to influence the purchase decisions, must transmit a coherent message inall advertising and communication activities. The co-ordination of this process must consider suchaspects as the brand awareness and the br and image, as determined by the nature of the consumers’perception.

The image is a mental representation of the brand and the product’s attributes and benefits. It is amulti-dimensional phenomenon that depends on the consumer’s perception of those attributes andbenefits. In branded products, both mental representation and its perception are built in a continuous

way, and developed through the image of fashion transmitted by each seasonal collection and by allactivities of marketing communication.

The overall effect of product branding depends on the integration of all the components of themarketing communication plan, including visual merchandizing, with the product design. All thesethree elements have an impact over the product adoption process and a similar final goal: to influencethe purchase option of branded products through the satisfaction of a certain product image demand.

Whereas the European and US fashion retailers have very long experience of these issues, the newregional brands have a very steep learning curve.



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The Brand Image in the marketing communication process

Brand managers need to develop systems to regularly reinforce the brands’ image in relation to theoverall brand identity and consumer awareness of the importance criteria for that product brand.

Brand management is less of a developed art in the regional markets than it is in the US or Europe.

The brand may benefit from an enhanced reputation and closer proximity to its buyers if the design ofeach collection takes into consideration the following aspects:

In order to keep or develop the value of the symbolic message of the brand, the brands’image management should be focused on a small number of distinct styles;

The consumer buys or uses branded products of different types and styles;

An effective brand image developed through constant re-designs, allows the brand to achieve

image coherence and to capitalize on it in the market by building a global presence.

The adoption process of product brands reflects the significant impact of the popular and

cultural image that a brand transmits as well as its inherent identification potential (social,

cultural and economic).

Recognizing this, consumers search for brands that approximates with their own aspirations, needsand wants; rather than that of the stereotypical people who may have appeared in advertisementsand the media. This is especially the case in markets which have traditionally been less exposed toglobal culture. Whereas the upper middle classes in the developing countries are increasinglyexposed to global stereotypes, nonetheless the traditional aspects of these markets frequentlyoutweigh the global imagery.

The Store Image in the marketing communication process

The store image development is established through its geographical location, the retail space whichit occupies and its external design. In addition it is defined by the products that it offers and theirrepresentation in the internal space of the store. The combination of these factors defines the storeatmosphere, or look, or personality. This should at all times conform to, and confirm, the targetcustomer base’s expectations of the store.

In many developing countries the store locations and the store space represents a major contributing

factor to mitigate the relatively high cost of global brands. The consumer is not only buying the brand,but is also buying into the ‘shopping experience’ in a way that is more profound than experienced inEurope or the USA.



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Consumer confidence and consumer markets

Consumer Confidence Index

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Trade Area #1

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Trade Area #6

Trade Area #7

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Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

Consumer confidence is assessed during Consumer Surveys when consumers were asked specificpsychometric questions which tested and cross-checked the issues mentioned here. The data aboveis derived from statistically accurate social / income group, and full age spectrum, surveys.

Consumer Confidence

Consumer Confidence relates to Spending Attitudes in relation to the general Economic situation; thedefinitive gauge of consumer sentiment around economic and social concerns across countries.

After periods of speculation and uncertainty around the economic conditions, at some stageconsumers reach a state of resignation to the economic realities and the majority will then usuallyadopt rational spending levels for various product groups.

Consumer confidence worldwide often fluctuates wildly as relatively uninformed consumers attempt tomake sense of media coverage of economic circumstances, the propaganda of their political masters,and their own empirical experience of the situation.



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In terms of the consumption of consumer products, the net effect is the changes in the propensity forconsumers to save rather than spend.

In the regional markets, as in the rest of the world, consumer confidence has fallen to its lowest levelin many years. The regional markets, and more particularly China and India are not forecast tosurvive the current economic recession any better than the USA or Europe.

Over 50% of global consumers’ state they put their spare cash into savings; this is an increase of over6% since 2010, and up 12% since 2008. The world’s most determined savers have always been inthe Asia-Pacific region, where an average of 61% of consumers chooses to save rather than spend.

Holidays and vacations continue to be a popular choice; with 26% of developing consumers planningto spend on their annual holidays, by contrast 24% of consumers currently choose to buy new clotheson a regular basis.

Consumer markets in developing countries have changed rapidly, and with strong growth indisposable incomes, plus the development of modern urban lifestyles, developing country consumersare becoming increasingly sophisticated and knowledgeable about branded products. Advertising andthe media allow companies to communicate with consumers in many different ways and thereforebrand propositions are now a part of daily life.

Foreign brands remain relatively powerful in the regional markets, especially in clothing and personalcare products; but increasingly brands have to be associated with value and suggest a clear andevident Value Proposition. Developing country consumers are turning as suspicious anddiscriminating as their US and European counterparts; and indeed the learning curve and productawareness amongst developing country consumers is evolving much more rapidly than it did with USand European consumers in the past.

Developing country markets are difficult to forecast because of the variability of the numbers of peopleliving in reduced financial circumstances and the more rural aspects of population distribution.Literacy rates are variable in many developing country countries. Income is frequently less welldistributed across the whole population than in other regions. The market also tend to be highlyregional for geographic or infrastructure reasons. A mosaic of cultures and languages in somecountries contribute to the difficulties of companies seeking to establish homogeneous brand images.

Understanding buying pattern of consumers in the regional markets is a challenging endeavour. Thedeveloping country consumers’ lifestyle and profile is evolving rapidly for a number of fundamentalreasons:

1. Population Age Distribution, especially the population below the age of 25.

2. The rise in the self-employed and financially self-sustaining segments of the workingpopulation.

3. The rise of the AB, C1 and C2 segments of the social groups.

4. Levels of discretionary spending amongst the urban middle classes.

5. The increase in the number of higher income households.

6. The increased consumption of technology and convenience products.

7. The rise in the use of credit and payment cards and other financial instruments.

8. The availability and cost of credit.

9. The increasing shift from price consideration to design and quality.

10. The adoption of aesthetic values and awareness of the projection of a personal image.

11. The increasingly critical evaluation of the Value Proposition of products and the Price – Value – Functionality considerations which are in the minds of consumers.

12. The acceptance of enjoyment of luxury items and an increased willingness to experiment withbranded products.

13. The acceptable of product obsolescence and the dictates of what is, and what is not,

perceived as being fashionable.



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By contrast there are factors which tend to differentiate, and often limit, many developing markets:

1. The relatively high portion of disposable income spent on Food and Housing.

2. The relative pricing of branded products.

3. The effectiveness and physical distribution of retailers, especially in large countries withlimited infrastructure.

4. The pressure on the gross margins and therefore the profitability of the entire supply anddistribution chain.

5. The difficulty for large scale retail operations and multiples to realise a good level ofprofitability.

6. The national shopping habits of consumers which sometime inhibit the impulse buying ofproducts.

7. The influence of family and cultural imperatives on the younger consumer age groups whomtend to represent the major segment of the brand market.

8. Consumer attitudes and influences when shopping as a family group as opposed to shoppingindividually or with peer group.

Consumer Attitudes and Perceptions which impact Brands

In most developing markets there are certain events, attitudes and preferences which impact on thepurchase of branded products.

1. Shopping habits and the method of shopping.

2. The role of matriarchal and patriarchal societies.

3. Special event purchases. The purchase of products for cultural, family and special events ismore important in certain markets.

4. The relative trust in local brands. There is a substantial degree of trust and confidence in localbrands.

5. The relative perception that foreign brands are of a higher quality than local brands is largelyage based. After the age of 24 this perception of the superiority of foreign brands rapidlydiminishes.

6. The relative effect of socio-economic groups and educational levels on brand perceptions.

7. The relative average spending during shopping trips. Younger demographics spend more pertrip than older demographics.

8. The relative average frequency of shopping trips. Younger demographics shop morefrequently than older demographics. Up to 24 years of age the shopping frequency is likely tobe once every 4 weeks, whereas this reduces after 25 years to once every 6 weeks, andreduces further as age increases.

9. The age group of consumers. Whereas the younger demographics believe that local brandscan compete effectively with foreign brands they nonetheless feel that foreign brands offerother benefits.



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10. The use of the products:-

% Usage & Purpose of purchases

< 19 & 19-24 Years old 25 + Years old

Social&Family

Work

Everyday

Home&Casual

Specialoccasion

Social&Family

Work

Everyday

Home&Casual

Specialoccasion

Market % % % % % % % % % %

Trade Area #1

Trade Area #2

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Trade Area #6

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Trade Area #14

Trade Area #15

Usage & Purpose of purchases is assessed during Consumer Surveys when consumers were asked specificpsychometric questions which tested and cross-checked the issues mentioned here. The data above is derivedfrom statistically accurate social / income group, and full age spectrum, surveys.

11. Perception of Designer –v- Standard / High Street Brands. In developing markets there aregrowing perceptions that Designer Brands do not offer any particular quality benefit overStandard / High Street Brands.

12. There is a general dislike of Internet shopping in developing countries.



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13. In urban areas, amongst the middle classes, 40% of consumers were aware of brands fromnewspapers, 25% of consumers were aware of brands from magazines, and 23% ofconsumers were aware of brands from Television and Films.

14. Celebrity endorsement

Celebrity endorsements in certain countries are usually limited to local brands or certain typesof international brands, namely, sportswear, denim, and youth casual wear.

Celebrity endorsement

Celebrity endorsement (Actors / Sports stars / Models / Movies Stars) importance is assessedduring Consumer Surveys when consumers were asked specific psychometric questionswhich tested and cross-checked the issues mentioned here. The data above is derived fromstatistically accurate social / income group, and full age spectrum, surveys.

Celebrity

Endorsements

irrelevant

Celebrity

Endorsements

important

Market % %

Trade Area #1

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Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

Celebrity endorsements were assessed during Consumer Surveys when consumers were asked specificpsychometric questions which tested and cross-checked the issues mentioned here. The data above is derivedfrom statistically accurate social / income group, and full age spectrum, surveys.



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Relative Ranking Criteria and Consumer Habits for Product Purchases

Price

Value

Quality&Design

Brandname

Convenience

ImpulseBuying

PlannedBuyin

g

LocalBrands

InternationalB

rands

Market % % % % % % % % %

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

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Purchasing Criteria and Habits are assessed during Consumer Surveys when consumers were askedspecific psychometric questions which tested and cross-checked the issues mentioned here. Thedata above is derived from statistically accurate social / income group, and full age spectrum,surveys.

Brand Selection

Consumers who purchase products from Exclusive brand outlets tend to visit the store specificallybecause they are attracted to that brand, not for reasons of brand comparison.

In multi-brand outlets the majority of women select and purchase a particular brand because of the‘shopping experience’. Overall preference for one brand over another is based on the ‘shoppingexperience’ generated by the chosen brand.



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Price over Brand Loyalty amongst Buyers

When shopping, price is the main consideration for young buyers and this extends to othergenerations. Young buyers are not as brand loyal as their parents, with generally less than 50%indicating brand loyalty as a major factor. There is an opportunity for more in-store marketing andpromotions as 25-40% of young buyers indicating that in-store promotions do drive purchases. Inaddition a significant percentage of younger buyers are influenced by store merchandising anddisplays.

Purchase Drivers for Buyers

Price

BrandLoyalty

Advertisingoffers

LoyaltyCa

rd

Presents

InStorePr

omotions

PressAdvertising

StoreMerc

handising

ProductPa

ckaging

Promotion

alStaff

Market % % % % % % % % % %

Trade Area #1

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Purchase Drivers are assessed during Consumer Surveys when consumers were asked specificpsychometric questions which tested and cross-checked the issues mentioned here. The data aboveis derived from statistically accurate social / income group, and full age spectrum, surveys.



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Domestic Brands -v- Foreign Brands

Brand Perceptions are assessed during Consumer Surveys when consumers were asked specificpsychometric questions which tested and cross-checked the issues mentioned here. The data aboveis derived from statistically accurate social / income group, and full age spectrum, surveys.

< 19 & 19-24 Years old 25 + Years old

TrustDom

esticBrandsStrongly

DoNotTrustDomesticBrands

ForeignBrandsareofaHigherQualitythan

DomesticBrands

ForeignBrandsareNotofaHigherQuality

thanDomesticBrands

Dependso

ntheBrand

TrustDom

esticBrandsStrongly

DoNotTrustDomesticBrandsStrongly

ForeignBrandsareofaHigherQualitythan

DomesticBrands

ForeignBrandsareNotofaHigherQuality

thanDomesticBrands

Dependso

ntheBrand

Markets % % % % % % % % % %

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

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What do consumers want in a branded product?

In developing countries there is rapidly growing youth population with a high level of education andexposure to global imagery. This demographic is particularly susceptible to brand propositions. Thus itis interesting to analyse the consumer needs of this demographic, as this will be the prime target forany new brand.

Price

Design

Atmosphere

Location

CustomerService

Promotions

Other

Markets % % % % % % %

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

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Trade Area #11

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Trade Area #14

Trade Area #15

Branded products are assessed during Consumer Surveys when consumers were asked specific

psychometric questions which tested and cross-checked the issues mentioned here. The data aboveis derived from statistically accurate social / income group, and full age spectrum, surveys.



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What Do Consumers Want?

This is the perennial question with no ready answers. For many people the answer may simply be topurchase brands which can be afforded on their budget. That mean a convenient and comfortablelocation to spend their money where they believe they will get value.

Why do reta i l brands at t ract consumers?

Which brand at t r ibutes were the most imp ortant to the customers?

The survey data shows the most important factors in determining store preference, i.e. which retailbrand consumers patronise when shopping). As can be seen the main factor was price, followed bydesign (i.e. style and trends). What this means for the store is clear product displays, pricing, andmerchandising; together with a sufficient inventory.

Whilst is may be considered that media advertisements would influence consumers, in fact this wasnot the case as some retailers use substantially less media advertising than others. What was evidentwas that in-store promotions frequently play an important role. Survey data suggests the following:-

Price

Design

Atmosphere

Location

CustomerService

Promotions

Other

Markets % % % % % % %

Trade Area #1

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Trade Area #5

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What can National brands do to counter the established Global brands?

There is little that any regional brands can do to counter the European and US brands. The reasons

for this the brand equity of the established brands and the fact that these brands are so entrenched inthe global market that it would be both expensive and ultimately counter-productive for any newcomerto attempt to overturn the apple cart.

To counter the global brands a newcomer will have to succeed in each of the following areas:-

Product Price

Product Design

Store Atmosphere

Store Location

Store Service

Product Promotions

The global players have spent decades working on these areas, and many of the global players havehad only marginal success. The marginality of their success is measured in their Return onInvestment, which has been only moderate in the past, and had indeed shown decline since 2008.

For regional brands to succeed they will need to re-think the traditional brand retail model.



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How can National brands do better than the Global brands?

It is not possible to speculate how companies may produce better designs. The experience is thatmany national designers are greatly influenced by US and European design concepts. Of course theonly reason that such designers are successful is because there is consumer demand for theirdesigns; ergo they have to produce US and European styles in order to succeed. The global brandmanagers use designers to create the consumers’ perception of what is, and what is not, desirable. Inthis respect the consumer is very malleable and is sufficiently neurotic to believe that this year ‘greenis the new black’ or ‘brown is the new chique’. One can never under -estimate the style sense of theconsumer, or over-estimate the ability to ability brand managers have in manipulating a gulliblecustomer base.

The question then is what regional brands can do to be better than the global brands. Once again onereturns to the consumer.

Product Price. The major high street brands have firm control of product pricing levels.

Product Design. The major high street brands decide themselves on what is desirable at anyparticular moment in time.

Store Location. The major high street brands have the market power to command the prime

locations.

Product Promotions. The major high street brands have the market power to beat any

competitor in promotional activity.

Store Atmosphere. New brands can compete here by catering to specific consumer

demographic and market segments.

Store Service. New brands can compete here by catering to specific consumer demographicand market segments.



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Novel marketing methods to distinguish oneself from the competition

Brand designers in the same industry generally use similar marketing methods to reach customers.How can brands and designers get creative and use unconventional marketing methods to distinguishtheir business from the competition?

This is specifically an area where new brands can start to compete with the tired marketing tacticsused by the major high street brands. There are a number of ways in which new entrants to themarket can change the interface between brand and buyer; and these will inevitable depend on thesegmentation of the customer base to achieve a more friendly interaction with the customer.

The most cost-effective way of improving interaction with customers is to use new technology to builddatabases on customers, to better interact with customer in-store, and as a means of communicationswith customer to encourage them to visit stores.

RFID chips in Store Loyalty Cards

Most women carry a purse full of store loyalty cards, and these may or may not encourage theconsumer to return to a particular store. However the inclusion if a RFID chip in the card will allowstore to use a range of customer interface procedures when customer return to the store.

For example, an RFID chip will allow the customer to be identified as she enters the store and then aseries of screen displays using an interactive Avatar could engage the customer in conversation usingvoice recognition software.

This conversation would use that customer previous purchases and choices as point of conversation.Screens would be placed at various locations in the store and the dialogue could continue and alsodirect the customer to particular products and promotional offers.

“Hallo Jane, welcome back. If you would prefer me not to help you please say -Yes- now.”

“OK. Can I show you some of our special offers in your size?”

“How did you like the skirt you bought the last time you were here?”

When two customers are within the same range of the same Avatar, the Avatar could introduce onecustomer to the other.

“Jane, can I introduce you to Betty? She has been a customer here for over two years.”

“Ladies, did you know that we have a special offer this week on jeans. You will find them inthe next section beside the changing cubicles.”

The use of automated systems based on customer identification would potentially enhance the‘shopping experience’ for the buyer and at the same time allow the collection of valuable marketintelligence.

Special Occasions

Small brands are more flexible in their operations and they are more able to interact with specificcustomer segments. By matching specific customer segments with specific product offering andspecial promotions a retailer can attract customers in a much more effective way than any major highstreet retailer.

By building up consumer contact lists, categorised by demographic and social groupings, productscould be promoted to these customer segments through special occasions (during weekends orevenings) where specific product ranges could be presented. The product ranges could then bemaintained through online marketing.

Spontaneous Eventing

The most profitable and dynamic customer segment tends to be the under 24 year group. Thisdemographic could be attracted to spontaneous events held in the retail premises or in local clubs orother locations. These events would combine a social occasion with the promotion of particularproduct offerings. Such events would be announced by mobile telephone messaging at the last

moment and would be intended to divert young people from their usual social haunts to the event.



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One would build into the system ‘exclusive’ events for high spending customers and these wouldinvolve musicians, local celebrities or special guests. There would be amongst the general customerbase a desire for inclusion into this ‘inner circle’.

There are many similar ways in which a small brand can outmanoeuvre the larger, more bureaucratic,

brands.

Unique Brand Offerings

“ A unique brand offering attracts more attention and results in more sales” is a reasonableassumption; however there is nothing unique in the industry.

One might imagine that the use of novel textiles or build-in electronics may be possible; however thefact is that if there was any viable possibility for such innovations they would already have beenseized upon by the major brands.

Gimmicks and gadgets tend to devalue the long-term image of brands and they should be avoided.

Average Brands Good BrandsExcellentBrands

Unspecified

Retailers % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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New and Untapped Market Demand

In the developing regions the new and untapped markets tend to be in the less affluent and rural partsof the developing countries. Unfortunately this population has little disposable income to spend on

branded products.

There is no new or untapped market demand available to overseas brands in developing regions.What local and segmented demand for products which exists in each country is catered for by localentrepreneurs offering discount products. Each market has its own domestic brands which cater forthe middle price range products. Overseas brands have high overheads and cannot compete in thelower end of the market and are therefore limited to a relatively small part of the overall productmarket.

Niche Markets

There are niche markets, niche re-vitalisation and niche development; and there is always someopportunities in each area.

Geographic Niches

Districts with limited competition often provide strong retail niches where it is very easy for shoppersto find a retail brand locations isolated from competitors. Downtowns areas are often available forstrong niche locations. Niche locations can also provide cost advantages because retail space isusually affordable and staff wage expectations are lower.

Customer Segment & Demographic Niches

The identification of customer segment niches requires local knowledge. The possibilities include:- Ethnic demographics

Office workers Older customers segments Sports enthusiasts Students Tourists

Product or Service Niches

Product or service niches are usually concerned with the special needs or aspirations of particularconsumer groups. Some examples would be:-

Add-ons like jewellery products or cosmetics Exclusives & Limited editions of products

Factory outlets or value retailing Product customisation Joint promotions with other retailers or service providers Special product types Special Services like home visits and personal shoppers



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Brand Superiority

Brands have to offer potential buyers as many benefits as possible; especially, product superiority,product differentiation, or a very strong brand image or heritage.

New brands and newcomers are limited in the benefits they can offer. The democratisation of theluxury brands and their general availability (if not financial accessibility) means that the bar has beenraised for all the middle ground players. Thus Product Superiority and Product Differentiation are nowperceived by consumer as being the preserve of the luxury brands. In general this also applies toBrand Image and Brand Heritage.

Thus is it increasingly difficult for High Street brands to offer their customers anything other than thethings being sought by the average retail customer. Those brand benefits are generally regarded asbeing:-

Product Price

Product Design

Store Atmosphere

Store Location

Store Service

Product Promotions

The High Street brands are thus limited to offering a lower product price, a better store atmosphere,better store service, and a more convenient store location. The benefits of design and promotions aretransitory and very variable.

Building Heritage Brands

The cost of doing a good job in Brand Building and Design is not necessary any more than the cost ofproducing mediocre brands and designs.

The building of a heritage brand always starts with a brand name which has a sufficient resonance tobe able to persuade consumers that it has sufficient weight to carry such a brand image.

For developing country companies it will be necessary to buy an existing name and convert that into a

brand image. To be a heritage name it must have resonance in Europe and the USA and this meansthat the name must be widely known in Europe and the USA.

Once a suitable name has been purchased then a developing country company can use the normalbrand creation tools to build the name into a brand.



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Brand Resonance

Building a strong brand uses a sequence of steps, in which each step is dependent on the success of

the previous step such as. These are as follows:-

1. Brand identity. This needs to be specific and clear.2. Brand meaning. What does the brand do for the consumer?3. Brand responses. How do consumers perceive and react to the brand?4. Brand relationships. What connections does the brand have and how does it connect with the

consumer?

The implementation of these steps, essential in the creation of the best brand identity, brand meaning,brand responses, and brand relationship, is a complicated and difficult process. The components ofthe process involve the following concepts:-

Brand Salience relates to aspects of the awareness of the brand, for example, how often and easily

the brand is evoked under various situations or circumstances.

Brand Meaning is made up of two major categories of ‘brand associations’ that exist in customers’minds related to performance and imagery, with a set of specific subcategories within each. Thesebrand associations can be formed directly (from a customer’s own experiences and contact with thebrand) or indirectly (through the depiction of the brand in advertising or by some other source ofinformation, such as word of mouth). These associations serve as the basis for the positioning of thebrand and its points-of-parity and points-of-difference. Creating strong, favourable, and uniqueassociations and the desired points-of-parity and points-of-difference can be difficult for marketers,but essential in terms of building brand resonance. Strong brands typically have firmly establishedfavourable and unique brand associations with consumers.

Brand Responses refers to how customers respond to the brand and all its marketing activity and

other sources of information that is what customers think or feel about the brand. Brand responsescan be distinguished according to brand judgments and brand feelings, that is, in terms of whetherthey arise from the “head” or from the “heart.”

Brand Judgments focus on customers’ personal opinions and evaluations with regard to the brand.Brand judgments involve how customers put together all the different performance and imageryassociations of the brand to form different kinds of opinions.

Brand Feelings are customers’ emotional responses and reactions with respect to the brand. Brandfeelings also relate to the feelings that are evoked by the marketing program for the brand or by otherpromotional means.

Brand Resonance refers to the nature of this relationship and the extent to which customers feel that

they connect with a brand and feel “in synchronization” with it. With true brand resonance, customershave a high degree of loyalty marked by a close relationship with the brand such that customersactively seek means to interact with the brand and share their experiences with others.

The importance of the brand resonance model is in the checklist it provides for brand building. Itprovides a basis by which brands can assess their progress in their brand building efforts as well as aguide for marketing research initiatives. Brands must have a Duality. That Duality is the brand’sconnection with the Consumer’s Head and Heart. One important point reinforced by the model is thata strong brand has such a duality. A strong brand appeals to both the head and the heart. Strongbrands blend product performance and imagery to create a rich, varied, but complementary set ofconsumer responses to the brand.



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Brand Persistence

Brand Persistence or Success is a basic matter of capturing a sufficient customer base or brandfollowing to sustain the brand over a period of time. Each year there are hundreds of brands

introduced to the market; only a limited number survive 3-5 years, and only a fraction survive for morethan 5 years. The lifecycle of a brand depends on the professionalism and determination of the brandmanagers.

Capturing a customer base

Capturing a customer base requires a very efficient and co-ordinated marketing effort to address theexpectations of existing customers. Essentially this is a marketing task to offer the customer base agreater number of relevant purchase opportunities as opposed to ineffective purchase opportunities,and greater number of competitive product offers as opposed to undifferentiated product offers. Thetarget customer base needs to be assured that they will get the product and services they expect fromthe brands they value the most.

a. Defining the target audience.

Who: Segment the target audience as precisely as possibleWhere: The marketing mix has to be fined tuned to each segmentHow: Audience management through multiple communications channelsPush: Prioritize and Filter product and promotional management tacticsPull: Product Design, Buying Experience, Store Design, Point of Sale, Inventory management

b. Engaging the target audience

Value PropositionProduct PricingProduct DesignStore Experience

c. Converting the target audience

Predatory PricingTactical MarketingTactical AdvertisingTactical Offers & Promotions

d. Strategy

Strategic analysis of customer expectationsStrategic blueprint to meet the customer expectationsStrategic Business PlanStrategic marketing objectives

e. Focus

Focus on the customer base segments which meet the profit objectives of the brandFocus on realistic marketing goalsFocus on the medium and long term development of the brand

f. Monitor

Seek and automate customer base feedbackFormalise data collection and collationMonitor customer attitude and perceptions

Automate the systems

g. Communicate

h. Create valuei. Database management and systems automation



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Expand the customer base

In order to optimize the value of the customer base, brands are required to constantly be in a processof re-attracting, re-engaging and re-converting their current customer base to leverage latent value.Re-acquisition processes (acquiring them in another segment, acquiring them in a new channel,

broader share of wallet) drive cross-sell and up-sell.It may be a basic concept that companies need to have single view of the customer across theenterprise—the reality is that today, it is not enough. One needs a broader view. Not just acrossone’s own systems but with supply partners and marketing partners. Offers need to be consistentacross channels and retail vehicles, even ones outside the brand’s usual sphere.

To drive cross-sell and up-sell one needs to understand customer characteristics and propensities—insights to customer segments. Expectations may be high because of the brand’s pre-existingrelationship with them.

Once one has the marketing mix aligned with the ability to listen and respond to the customer base,one then has to apply the right insights to create the best and most relevant product offerings.Optimized engagement with the customer base and the combination of the right offer with the right

marketing provides consistency with one’s customers and this helps create an on-going dialogue

across channels.

One needs to respond in real time however the consumer come to the brand—whether at a point ofsale, entering the store, online, promotion, etc. Whether one’s primary metrics are RFM, Share ofWallet or lifetime value, effective feedback can help one track and optimize performance on thesegment level.

Addressable Advertising: Brands cannot chase everyone, one needs to focus on those consumerswho are most relevant to one’s business, and one needs to stop wasting money on those consumerswho are not relevant.

Preserve the customer base

Valuable customers are the lifeblood of the brand with whom they choose to do business. Savvyconsumers sense that companies generally treat their potential customers better than their currentcustomers. They feel like they deserve to be recognized and rewarded for their loyalty. There arespecific ways leading companies consistently treat and engage their customers in the way theyexpect.

Customer loyalty is born when companies fulfil their brand promise or value to their customers. Additionally, companies that are ranked highest in customer satisfaction employ additional initiativesthat specifically cultivate loyalty and customer advocacy, whether it’s a point or reward system orspecial access to exclusive events or benefits, or just something as basic as having their preferencesacknowledged and honoured.

The lifecycle is entirely interdependent. Retention efforts first start with strong acquisition. One needsto attract the right people in the first place. Once one has captured a customer, the propermaintenance is essential. One starts building their loyalty habit in the very first interactions with thebrand. A strong cross-enterprise single view of the customer (recognizing, learning and remembering)can ensure that in their next interaction, whatever channel they chose to engage the brand through,the brand is aware of the previous interaction.

Brands need to be both reactive and proactive in their efforts to reduce attrition.



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Brand Development Opportunities

The question of whether brand managers should produce innovative new brands and designs or tapinto the potential of existing or little used brands is asked by managers in every major supplier. Theanswer is that neither option is easy or affordable for the average established brand producers, letalone a newcomer.

The global brands have thousands of brand managers seeking just these answers; however thereality of the situation is that there is little innovation to be achieved and few brands to be re-vitalised.Thus brand managers are left with the same tired mantra of what is ‘the new black’ and what is ‘in thisseason’.

AverageOpportunities

GoodOpportunities

ExcellentOpportunities

Unspecified

Retailers Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15




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Industry Checklist

Any checklist used by producers and brand managers will include some fundamental topics. Theseinclude: product fundamentals, principles and elements of design; product options and preparation;

product selection and continuity; and consumer strategies.

Product Design and Merchandising

Market specific

TradeArea#1

TradeArea#2

TradeArea#3

TradeArea#4

TradeArea#5

TradeArea#6

TradeArea#7

TradeArea#8

TradeArea#9

TradeArea#10

TradeArea#11

TradeArea#12

TradeArea#13

TradeArea#14

TradeArea#15

How effective are the existing productsand designs in demonstrating thepotential for greater marketpenetration in the market?

How well do the existing products anddesign evoke the fundamentals ofproduct design and merchandising?

How well do the brands adhere to therecognised principles of the products?

How well do the existing productscover all the available options withinthe product design andmerchandising?

How well developed are consumerstrategies in respect of the selection,development, and assortment ofproducts?

How developed are the merchandisingstrategies?

How skilled are the management andleadership in the market?

How well do the retail managementperform in respect of leadershipstrategy?

How well do the retail managementperform in respect of product strategy?

The data above is derived from trade commentary.



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Performance Indicators

Market specific

TradeArea#1

TradeArea#2

TradeArea#3

TradeArea#4

TradeArea#5

TradeArea#6

TradeArea#7

TradeArea#8

TradeArea#9

TradeArea#10

TradeArea#11

TradeArea#12

TradeArea#13

TradeArea#14

TradeArea#15

How well do the domestic brandsinterpret influences on product design?

How well do the domestic brands

identify and analyse characteristics ofproducts and designs?

How well do the domestic brandsperform in determining product trends?

How well do the international brandimages affect the industry in themarket?

How much significance do the globalbrands have in the market?

How well do the existing brandsperform in organizational andoperational factors?

How do the domestic brands usetechnology in product design?

How well do the domestic brands

identify and utilize product designconcepts?




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Application of Design – Performance Factors

Market specific

TradeArea#

1

TradeArea#

2

TradeArea#

3

TradeArea#

4

TradeArea#

5

TradeArea#

6

TradeArea#

7

TradeArea#

8

TradeArea#

9

TradeArea#

10

TradeArea#

11

TradeArea#

12

TradeArea#

13

TradeArea#

14

TradeArea#

15

How well do the domestic brands useelements of design in the market?

How well do the domestic brands usethe principles of design in the market?

How well do the domestic brands useproduct presentation effectively in themarket?

How well do the domestic brands usethe principles of design to enhance theappearance of products?

Industry Performance Indicators

Market specific

TradeArea#1

TradeArea#2

TradeArea#3

TradeArea#4

TradeArea#5

TradeArea#6

TradeArea#7

TradeArea#8

TradeArea#9

TradeArea#10

TradeArea#11

TradeArea#12

TradeArea#13

TradeArea#14

TradeArea#15

How well do local entrepreneurs

recognise brands opportunities in themarket?

How good is the local knowledge andskills of retailers in the market?

How well do local entrepreneurs useplanning and systems for brandmanagement in the market?




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Performance Indicators for brand selection, development, and distribution

Market specific

TradeArea#

1

TradeArea#

2

TradeArea#

3

TradeArea#

4

TradeArea#

5

TradeArea#

6

TradeArea#

7

TradeArea#

8

TradeArea#

9

TradeArea#

10

TradeArea#

11

TradeArea#

12

TradeArea#

13

TradeArea#

14

TradeArea#

15

Decision-makingprocesses toselecting,purchasing, anddevelopmentbrands.

Evaluating theimpact of trendsand forecasting onconsumer choices.

Determining thecriteria for productsthat meet theneeds ofconsumers.

Ability in planningproduct mixes andcoordinating

existing productranges.

Analysis of thequality of productcrafting, materials,and design.

Analysis of theselection and useof products.

Evaluating apparel

care procedures.

Analysis of thesources forpurchasingproducts.




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Performance Indicators for merchandising strategies

Market specific

TradeArea#

1

TradeArea#

2

TradeArea#

3

TradeArea#

4

TradeArea#

5

TradeArea#

6

TradeArea#

7

TradeArea#

8

TradeArea#

9

TradeArea#

10

TradeArea#

11

TradeArea#

12

TradeArea#

13

TradeArea#

14

TradeArea#

15

Planning theimpact of visualmerchandising.

Planning the roleand effectivenessof advertising on

consumer choices.

Identifyingstrategies forpromoting productsand services.

Planning thefunctions of theoperational andmarketingprocesses.

Product displaysusing the elementsand principles ofdesign.

Analysis of viablemerchandisingtechniques.

Determine theimpact oftechnology on the

marketing andmerchandising ofproducts.

Identify viablemarkets forproducts.




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Market Strategy Insight

Market Entry Possibilities and Criteria

The data provided by the market difficulties, market, financial and consumer analyses indicate a roadmap for market entry into the countries. It is necessary not only to evaluate the short-term prospects(1-7 years), but more importantly the medium term (7-14 years), and the long term (14+ years). Moreimportant than the size of the market potential is the potential for the return on investment. Thereforethis section will attempt to provide a concise appraisal of the market entry possibilities and therationale behind those choices.

Market Entry Difficulties

S = 1-7 years

M = 7-14 years

L = 14-21years

ProductGroup#1

ProductGroup#2

ProductGroup#3

ProductGroup#4

ProductGroup#5

ProductGroup#6

ProductGroup#7

Markets S M L S M L S M L S M L S M L S M L S M L

Trade Area #1

Trade Area #2


Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

= Easy = Neutral = Difficult

Market Entry Difficulties refer to the ease of entry to the market, the potential for direct investment andthe regulatory environment for the products and the operation of a business.



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Market Potential

S = 1-7 years

M = 7-14 years

L = 14-21years

ProductGroup

#1

ProductGroup

#2

ProductGroup

#3

ProductGroup

#4

ProductGroup

#5

ProductGroup

#6

ProductGroup

#7


Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

= Growth = Static = Decline

The market potential is a function of market size, disposable income and propensity to consume. Insome countries, notable China, there is demographic dysfunction due to the one child policy and this

has created a serious problem with standard distribution of the population. Essentially in China thereare fewer females and there is an aging population. Both these factors in China will impact women’sfashion products.



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Financial Potential

S = 1-7 years

M = 7-14 years

L = 14-21years

ProductGroup

#1

ProductGroup

#2

ProductGroup

#3

ProductGroup

#4

ProductGroup

#5

ProductGroup

#6

ProductGroup

#7


Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

= Growth = Industry Averages = Decline



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Consumer Potential & Attitudes

S = 1-7 years

M = 7-14years

L = 14-21years

ProductGroup#

1

ProductGroup#

2

ProductGroup#

3

ProductGroup#

4

ProductGroup#

5

ProductGroup#

6

ProductGroup#

7


Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

= Growth = Industry Averages = Decline



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Relative Return on Investment by Market Area : 1-14 years

The data provided by the market situation, overall market forecasts, financial and consumer analysesplotted against the likely investment costs in each area in the short-term (1-7 years), the medium term(7-14 years).

Markets

Year

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12


Trade Area #15

The data above is derived from relative product, market and financial analysis.



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Relative Return on Investment by Product Category

The data provided by the above analyses is used to provide a breakdown of the potential of Return onInvestment for each product category for each market in the short-term (1-7 years), the medium term(7-14 years).

Relative Return on Investment by market for Product Groups

Produ

ctGroup#1

Produ

ctGroup#2

Produ

ctGroup#3

Produ

ctGroup#4

Produ

ctGroup#5

Produ

ctGroup#6

Produ

ctGroup#7

Produ

ctGroup#8

Produ

ctGroup#9

Produ

ctGroup#10

Produ

ctGroup#11

Produ

ctGroup#12

Produ

ctGroup#13

Produ

ctGroup#14

Produ

ctGroup#15

Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

The data above is derived from relative product, market and financial analysis.



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Opinions of the trade and retail experts on introducing new brands

Promotebrand

through

wholesalers

Brandownedretail

chain

Franchisingvia

individual

franchisers

Franchisingvia

SoleInvestor

Franchisingvia

NationalDistributor

% % % % %


Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8


Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

The data above is derived from the opinions of the trade and retail experts in each market.



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SECTION 3

Market Research

for

AGDMedia

Markets

in

Poland



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MARKET RESEARCH COVERAGE

Markets & Products covered

The report will give market data for each of the below Product and Market Sectors, by year. Historicdata from 1997 and Forecast data to 2028. Data is given for the Poland National Market plus marketdata for each major City in Poland.

Product Sectors

This database scans all the Retail Sectors, and certain Service Industry Sectors to identify all thoseproduct areas which represent the markets for AGDMedia. These are existing markets and potential

markets for future development.

Motor vehicle & parts dealers

Furniture & home furnishings stores

Electronics & appliance stores

Building material & garden equipment & supplies dealers

Food & beverage stores

Health & personal care stores

Gasoline stations

Clothing & clothing accessories stores

Sporting goods, hobby, book & music stores

General merchandise stores

Miscellaneous store retailers

Non-store retailers

http://www.dg-di.eu/BASE_FOLDERS/NAICS/con_441.htm






































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Survey Data

The investigation consisted of field surveys and consumer interviews.

Discussions with the local experts covered the following issues based on the interviewees’ personalor corporate experiences. Interviews were conducted with various industry experts.

Retail experts at Trade Magazines or other Media were interviewed regarding the existing marketconditions for the brands, the existing penetration of retail brands, and the future prospects.

Trade Wholesalers, Brand Managers, Trade Buyers, Retailers, In-store Retail Negotiators wereinterviewed.

The surveys of Consumers and Retail Customers were done to analyze overall retail issues, Brandawareness and attitudes towards brands and imports, criticisms of existing retailers, methods forretailers to improve service, et cetera. The Surveys covered Retail Store Customers and Consumersof products and services.

Consumer Surveys

Surveys of Consumers and Buyers:

Consumer Surveys

Buyers & Consumers Consumer Surveys Decision Makers

Competitors Consumer Surveys on Competitors

Operations Consumer Surveys on Operations

Products Consumer Surveys on Products

Trading Area Consumer Surveys for the Trading Area


















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Surveys of Supply Chain & Distribution Channels Members:


Buyers & Consumers Distribution Channel Surveys Decision Makers

Competitors Distribution Channel Surveys on Competitors

Operations Distribution Channel Surveys on Operations

Products Distribution Channel Surveys on Products

Trading Area Distribution Channel Surveys for the Trading Area


Surveys of Trade and Consumer Decision Makers:


Buyers & Consumers Decision Makers Surveys

Competitors Decision Makers Surveys for Competitors

Operations Decision Makers Surveys for Operations

Products Decision Makers Surveys for Products

Trading Area Decision Makers Surveys for Trading Area


Surveys of Industry & Retailer Performance:






















































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Products

Product Group #1

Product Group #2

Product Group #3

Product Group #4

Product Group #5

Product Group #6

Product Group #7

Product Group #8

Product Group #9

Product Group #10

Product Group #11

Product Group #12

Product Group #13

Product Group #14

Product Group #15

Operations

1. Brand Management

2. Product Management
















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Buyers &

Consumers

1. Wholesalers

2. Trade Buyers

3. Retailers

4. Consumers







11. Consumers Age: 65+

12. Consumers Social Group: AB




Trading Area

1 Poland

2 Mazowieckie3 Śląskie

4 Wielkopolskie

5 Małopolskie

6 Dolnośląskie

7 Łódzkie

8 Pomorskie

9 Lubelskie

10 Podkarpackie


12 Warsaw13 Zachodnio-Pomorskie


15 Świętokrzyskie



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Retail Competitors

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15



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Geographic Coverage

The report will provide data for Poland National market, plus market data for the largest City andTown in Poland.

See: http://www.dg-di.eu/BASE_FOLDERS/World_Cities/PL.html

Financial data

The databases give Financial data and Margins by year Historic: 1997 to Current, and Forecast to2028.

Financial Data Scenarios

There are a large number of Financial Scenarios available, for example, the Median Scenario:-

Median Financial Scenarios

Financial Margins & Ratios Data Scenarios

There are a large number of Financial Margins & Ratios available, for example, the Median Scenario:-

Median Financial Margins & Ratios

http://www.dg-di.eu/BASE_FOLDERS/xls/F0M.xls


http://www.dg-di.eu/BASE_FOLDERS/xls/G0M.xls






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Poland

Market Research

General Contents

This report provides users with commercial intelligence on the markets and industry in the nationalmarket, product sectors, financial and industry data on each of the Towns and Cities. There are alarge number of towns covered in this report for which overall market data is provided. Detailedmarket and product data is given for End User significant towns and for End User significant ProductLaunch towns. Detailed financial data is given for commercially significant towns and for commerciallysignificant Product Launch towns.

This report is formatted to give both a narrative description of the various matters covered as well asprovide readers with the ability to directly use the Chapters (via Microsoft Word or compatible wordprocessors) to produce their own reports and documentation. Experienced users will be able to use

the spreadsheet and databases to generate highly detailed narrative reports, charts and graphics - aswell as sophisticated business and commercial forecasts and models. The databases are provided inboth Excel spreadsheets and an Access database. Explanatory notes are provided as word processordocuments or in PDF formats.

The narrative in this report is necessarily illustrative in its terminology and seeks to provide a basicdegree of business logic and theory which indicates the rational applied in the forecasting andmodelling methodology.

The databases provided are specifically designed to provide users with a uniform and consistentnumeric measure of both (normally) quantifiable values as well as conceptual factors which are(usually) only capable of qualification. Experienced users will know how to apply forecasting andmodelling software to the numeric data provided to generate highly detailed and discrete businessplanning models. The databases provided in this report can be used directly with databases on otherproduct, markets and industries in other countries. The databases are specifically designed to betransnational, currency neutral, inflation and purchasing parity adjusted, product parity and productequivalent adjusted, opportunity cost adjusted, and numerically compatible; they all can be linked ormerged programmatically in business planning models to provide multi-national and multi-levelanalysis.



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Market Research Report Table of Contents

Poland

For a detailed Table of Contents for each chapter, database or spreadsheet: click on the Blue

headings shown below. This will open a page in your browser which fully specifies the contents ofthat heading. These are links to the web site and they open the section or chapter in question.

Please also see the Notes to the contents: Notes

Within each heading there are links with detailed descriptions and explanation of the contents; thesecan be opened when the link is clicked.

Core National Database Open the Core Database here

Chapters Pages

Volumes

Diagrams, Maps

& Illustrations

Spreadsheets

& Databases

63 c. 1150-3225 DVDs c. 260 c. 6440-9660

Contents depends on the number of significant (Poland) Towns and Cities

Sections

Preface

Chapters

Databases

Financials

Industry

Markets

Products

Grids

Reference

Contents

Legend

Cities

Countries

http://www.dg-di.eu/PureData/Base_PureData/mr_notes.htm


http://www.dg-di.eu/Client_Webs/Login.html


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http://www.dg-di.eu/BASE_FOLDERS/MarketResearch/MR_RR_CHAPTERS.htm


http://www.dg-di.eu/BASE_FOLDERS/MarketResearch/MR_RR_SPREADSHEET.htm


http://www.dg-di.eu/BASE_FOLDERS/MarketResearch/MR_RR_FINANCIAL.htm


http://www.dg-di.eu/BASE_FOLDERS/MarketResearch/MR_RR_INDUSTRY.htm


http://www.dg-di.eu/BASE_FOLDERS/MarketResearch/MR_RR_MARKET.htm


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http://www.dg-di.eu/BASE_FOLDERS/MarketResearch/MR_REFERENCE_DATA.htm


http://www.dg-di.eu/BASE_FOLDERS/MarketResearch/MR_CONTENTS_TYPE.htm


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Chapters

Chapter 1 ADMINISTRATION

Chapter 2 ADVERTISING

Chapter 3 BUYERS – COMMERCIAL OPERATIONS

Chapter 4 BUYERS – COMPETITORS

Chapter 5 BUYERS – MAJOR CITY

Chapter 6 BUYERS – PRODUCTS

Chapter 7 BUYERS –

TRADE CELL

Chapter 8 COMPETITIVE INDUSTRY ANALYSIS

Chapter 9 COMPETITOR ANALYSIS

Chapter 10 COUNTRY FOCUS

Chapter 11 DISTRIBUTION

Chapter 12 FINANCIAL - BUSINESS DECISION SCENARIOS

Chapter 13 FINANCIAL - CAPITAL COSTS FINANCIAL SCENARIOS

Chapter 14 FINANCIAL - CASHFLOW OPTION SCENARIOS

Chapter 15 FINANCIAL - COST STRUCTURE SCENARIOS

Chapter 16 FINANCIAL - HISTORIC INDUSTRY BALANCE SHEET

Chapter 17 FINANCIAL - HISTORIC MARKETING COSTS & MARGINS

Chapter 18 FINANCIAL - INVESTMENT + COST REDUCTION SCENARIOS

Chapter 19 FINANCIAL - MARKET CLIMATE SCENARIOS

Chapter 20 FINANCIAL – MARKETING COSTS

Chapter 21 FINANCIAL - MARKETING EXPENDITURE SCENARIOS

Chapter 22 FINANCIAL – MARKETING MARGINS

Chapter 23 FINANCIAL - STRATEGIC OPTIONS SCENARIOS

Chapter 24 FINANCIAL - SURVIVAL SCENARIOS

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Chapter 25 FINANCIAL - TACTICAL OPTIONS SCENARIOS

Chapter 26 GEOGRAPHIC DATA

Chapter 27 INDUSTRY - NORMS

Chapter 28 MAJOR CITY MARKET ANALYSIS

Chapter 29 MARKET CAPITAL ACCESS SCENARIOS

Chapter 30 MARKET CASHFLOW SCENARIOS

Chapter 31 MARKET ECONOMIC CLIMATE SCENARIOS

Chapter 32 MARKET INVESTMENT + COSTS SCENARIOS

Chapter 33 MARKET MARKETING EXPENDITURE SCENARIOS

Chapter 34 MARKET RISK SCENARIOS

Chapter 35 MARKET STRATEGIC OPTION SCENARIOS

Chapter 36 MARKET SURVIVAL OPTION SCENARIOS

Chapter 37 MARKET TACTICAL OPTION SCENARIOS

Chapter 38 MARKETING EXPENDITURE -v- MARKET SHARE

Chapter 39 MARKETING STRATEGY DEVELOPMENT

Chapter 40 MARKETS

Chapter 41 OPERATIONAL ANALYSIS

Chapter 42 OVERSEAS DEVELOPMENT

Chapter 43 PERSONNEL MANAGEMENT

Chapter 44 PHYSICAL DISTRIBUTION + CUSTOMER HANDLING

Chapter 45 PRICING

Chapter 46 PROCESS + ORDER HANDLING

Chapter 47 PRODUCT ANALYSIS

Chapter 48 PRODUCT DEVELOPMENT

Chapter 49 PRODUCT MARKETING FACTORS

Chapter 50 PRODUCT MIX

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Chapter 51 PRODUCT SUMMARY

Chapter 52 PROFIT RISK SCENARIOS

Chapter 53 PROMOTIONAL MIX

Chapter 54 SALESFORCE DECISIONS

Chapter 55 SALES PROMOTION

Chapter 56 SURVEYS

Chapter 57 TARGETS - PRODUCT + MARKET

Chapter 58 TECHNOLOGY

Chapter 59 TRADE CELL ANALYSIS

Chapter 60 URBAN COMPETITION

Chapter 61 TOWNS - FINANCIAL

Chapter 62 TOWNS - INDUSTRY

Chapter 63 TOWNS - MARKET

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SECTION 4

Business Planning

AGDMedia



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BUSINESS PLANNING

Checklist

Before one can develop a realistic business plan one needs to establish the business objects andthen to produce a database with the following parameters:-

1. Business start-up

a. Company Law

b. Capital Requirements

2. Credit

a. Availability of trade credit

b. Banking policiesc. Foreign Exchange regulations

d. Remittance of Profits

e. Credit data considerations

3. Employment

a. Employment contracts

b. Employment laws

4. Import of Goods

a. Quotas & Licensing

b. Prohibitions & Restrictions

c. Free imports

d. Tariff-rate quotas

e. Approvals & Inspections

5. Import Duties

a. General Rates

b. Most-Favoured Nation Rates

c. Agreement Rates

d. Preferential Rates

e. Tariff-rate Quota Rates

f. Provisional Rates

g. Preferential Duty Reductions

6. Taxes

a. Value Added Taxes, Reduced Rates, Exemptions, Rebates

b. Business Taxes, Tax Conventions, Specific Product/Trade Taxes

c. Miscellaneous Taxes

7. Product Labelling & Certification

a. Language of labels

b. Safety Certifications

c. Mark Lists

d. Labelling requirements

8. Authorities



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a. Customs

b. Financial

c. Commerce

d. National, State, Regional, City administrations

9. Compliance

a. Tax compliance

b. Enforcement of regulations

c. Treatment of foreign enterprises

d. Corruption

10. Retailing

a. Regulations

b. Domestic Retail Development

c. Foreign Retail Investments

d. Economic & Political policies

e. Establishment of enterprises

f. Methods for Market Entry (M&A, Sole Distributor, Franchise, Local presence, etc.)g. Consumer Markets

h. Logistics & Supply Chains

i. Retail Location & Property

j. Infrastructure difficulties

k. Transaction Costs

l. Bureaucracy

m. Distribution Channels

n. Personnel

o. Financial management

p. Availability of premises

q. Availability of services

11. Retail Demand

a. Emergence of urban middle class

b. Demand stimulation & Disposable Incomes

c. Cultural Factors and Cultural change

d. Retail outlet distribution

e. Infrastructure development

f. Fragmentation of Markets

g. Economic & Socio-cultural demarcations

h. Consumer Segments

i. Consumer Lifestyles

j. Consumer Prejudices

k. Strength of Domestic companies

l. Aggressiveness of Domestic companies

12. Retail Values

a. Growth

b. Real –v- Forecast

13. Demand Drivers

a. Supply Chain Cost reduction

b. Store Format

c. Information dissemination and receptiond. Shopping Habits



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e. Service provision

f. Customer Demand / Expectation satisfaction

g. Product Pricing

h. Retail Channel Development

i. Product Mix

j. Marketing Mixk. Family size and composition

l. Geographic location

m. Regional diversity

14. Competition

a. Domestic Competition

b. International Competition

c. New Entrants

d. Retail Consolidation

e. Aggressiveness of Players

f. Bargaining Power of Suppliers

g. Bargaining Power of Buyers

h. Cost Reduction

i. Location & store siting

j. Internet

k. Payment systems

15. Market Entry Strategies & Control of Operations

a. Own Local Manufacture & Distribution & Retail Outlets

b. Own Stores

c. Joint Ventures & Mergers

d. Licensing

e. Franchisingf. Stocking Distributors

g. Sales Representation to Wholesalers

h. Direct Sales to Consumers

16. Tactics

a. Control and Define Supply Chain and Distribution policies and finances

b. Enter smaller cities

c. Concentrate of younger demographics

d. Entrench & strengthen brand recognition

e. Develop Sales Channels / Internet / TV / Malls / Shopping experiences

f. Offer intangible benefits

g. Reduce Costs and Reduce Prices



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Checklist implementation

Business Planners should input their business objectives and parameters using a database format,for example, the ‘Business_Planning_Checklist_Retailing.xlsx’ file which is found in the Toolkit.

Basic data on Customs Tariff, Duty & Taxation levels, Import restrictions & Regulations, Shipping &Packaging Requirements, Customs Clearance Procedures and time delays, Port of Entry data: Name,Location, Description, Customs Handling, Storage, Transport facilities, et cetera, can be found in thesupporting documentation.

The Toolkit contains PDF files for each national market.

Advancing your Project

Once the business planner has defined the business objectives and the necessary parametersattention can then be turned to the practical isolation of locations for retail outlets. This is necessaryirrespective of whether a decision has been made to open brand owner stores or to franchise thebrand.

Next one needs to select the target geographic areas within Poland; and this is done with reference tothe City and Town data in the core database. The data accessed should include:-

The City or Town

Sub-divisions of the Retail Districts

Features and Characteristics of the Retail Districts

Major Malls, Shopping Centres, Retail Streets

Advertising and Marketing activities of Retailers

Demographic and Social Customer Base served

Spending Levels of consumers

Brand Preferences of consumers



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Cashflow

The client can order Cashflow projections (as part of the After-Sales Service) once operationalparameters have been set. The operational parameters are the initial retail capital investments, store

location, overheads, staff levels, et cetera.

Cashflow projections are done using a monthly interval and will depend on which month the retailstore will open. It is not possible to produce Cashflow projections without knowledge of the Startmonth and other market criteria. The first few months of sales revenue in the retailer’s business willdepend on which month a store first opens. Other items, like before start-up expenses, openingbalances, et cetera, must be known before a Cashflow projection can be made.

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The Business Plan Programme

Users can produce a basic printed Business Plan if that is all that is needed. For a more detailedBusiness Plan, the software will take users through a series of forms and utilities which will allow one

to specify the commercial plan objectives and the project events; one then produces a Projectdatabase. Users can then generate an advanced Project Dialogue database which providesdetailed guidelines and a project management action plan for the country covered by the project. Inaddition, if needed, users can obtain additional human resources and support services to produce anassisted Business Plan. The software then generates a Business Plan Web which incorporates thebusiness plan objectives and the underlying market research findings. Finally, if needed, a modellinglevel Business Plan is available, and this incorporates highly sophisticated business forecastingcomponents.

Business Plan: Basic

With only the market research data, users can produce a Basic Business Plan using the Word document

template which is provided.

This is the quickest and simplest Business Plan users can write; and it is useful when one is producing a printedbusiness plan for a local business or trade. This type of business plan would suit a small business start-up whereusers have to submit a simple business plan to their bankers or investors.

Business Plan: Detailed

The second level of Business Plan, which is used as a commercial blueprint for the project, produces a DetailedWeb site. The web based plan is better suited if users wish to run a number of scenarios and then distributethose finding to a project team and/or to several recipients. The web can be on a single computer, on an intranetsite, or (if the participants are not in one location) a password protected internet site.

This web based business plan is useful when one is producing a commercialised business plan which needs theprecise elements of the business plan quantified in a series of formal documents. This type of business planwould suit a business start-up which is run by a project team that needs the project elements coordination.

Business Plan: Advanced

The third level extends and develops the above Business Plan Web to produce an Advanced projectmanagement blueprint which includes both the commercial business plan as well as a project managementschedule (for the country) which allows the project designers to specify and coordinate the commercial elementswith the activities of the project team.

This business plan web will orchestrate the project managers and project team, human resources, thecommercial participants, the physical resources, and the purchased products and services.



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Business Plan: Assisted

In addition to the above Business Plan webs, users can also augment the project operation with theadditional human resources and support services provided by us. These services are entirely flexibleand can be used to either develop the project methodology and planning structure, or as elementswhich form part of the physical project.

These services are injected into the overall Business Plan and become an integral part of the businessplanning activities. In this way the project managers and project team can use our human resourcesand services seamlessly as part of the project elements.

Business Plan: Modelling Level

The modelling level business planning resources use a battery of macro and micro economic, industry andmarket level, product and buyer, forecasting models to produce medium and long-term business plans.

These are bespoke business planning resources which are tailored to the user's individual circumstances andneeds.

Installing the Business Plan Programme

The business plan programme is installed by running Business Plan Program Installation & Setup.

The installation puts this shortcut on your desktop to open the database.

When you install the Business Plan software it creates a Business Plan directory folder on yourcomputer. So that you can easily find the folder, it is put on your root directory. The structure of thisfolder is shown here.

From this folder you can generate any number of Business Plan projects, and these individualprojects are then saved to the Project folder you specify in the project generation process. See thestructure of this directory here.

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How it wo rks ...

First, review the Market Research to gain an understanding of the market and the industry. This is asimple process which allows users to browse the Market Research Web and quickly pick those areasof interest and potential business opportunity.

Second, install and run the Business Plan software to generate the detailed commercial and projectmanagement databases. Each Business Plan is a single project and the user can run as manyprojects, or business plan scenarios, as required.



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The Business Plan software takes the user through a series of database forms and spreadsheetswhich will result in the production of a comprehensive and cohesive Business Plan:-

One can modify the business plan, or run as many different scenarios as necessary, to refine aparticular business plan or to explore alternatives.

Third, run the Project Dialogue software to generate the advanced Project Action Plan databases forthe country covered by the project.



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The Project Dialogue software takes the user through a series of database forms and spreadsheetswhich will result in the generation of the detailed Project Action Plan databases and timetables for thecountry that the project will cover:-

Fourth, users can obtain further services as part of the After-Sales Service, including a Service Team,Consultants, Resources, Support Services, and Corporate Research; and this allows users to accessadditional project resources and/or produce more detailed analyses and blueprints for projectmanagement.

There are many ad hoc services through which users can obtain the help they need to assist them to

reach their business goals. These ad hoc services can range from a full Service Team which canproduce a fully implemented turnkey project, to the simple provision of a consultant on the other endof a telephone line to immediately answer a technical or commercial question, or the loan of aprogrammer or systems engineer for a few hours. In addition to the human resources, users can alsoaccess a wide range of commercial and physical resources, support services, and corporateintelligence.



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These resources and services become an integral and operational part of the project and aremanaged by the project managers.

Fifth, users generate the Project Web which will allow users to view the project in its entirety.

Users do not need to complete all the forms; however the ones which users do not complete willresult in incomplete project web pages. Users can edit out these unwanted web pages. Users can ofcourse return to these forms later and complete any missing data and then re-generate the projectweb.



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Users can update the project data as often as users require and then re-generate the Project Web (ifusers specify the same Project Name then the new project web will over-write the existing web).Users can also generate as many separate Projects designs or scenarios as users wish (each with aunique Project Name) and these will generate separate Project Webs for viewing and discussion.

Finally, users can obtain software and databases to generate highly detailed medium and long-termbusiness planning analyses and forecasts for company management and investors.

There are diverse utilities, forecasting and modelling tools available for advanced business modellingand forecasting; and one can use these to produce highly detailed analyses, or specialized businessplanning forecasts and documentation, reports, spreadsheets, and other items to assist companymanagement in their medium and long-term planning activities.

This is especially useful where users are involved in technical/industrial processes, or a complicateddistribution system, or intricate financial operations, or a technologically evolving product, where one

has to coordinate and manage the project elements over an extended geographic space and/or overa medium or long-term timescale.



Retailer Analysis Report

AGDMediaMethodology

For a general description of the methodology used to prepare this database see: Methodology

Presentation

The report is delivered as follows:

1. Retailer Report downloaded Online as a PDF file.

2. Report and report Database on DVD or Hard Disk Drive.

3. Toolkits. 5 Toolkits containing Tools, Utilities, Software and Resources.

4. 1 hour Teleconference / Teamviewer discussion of the report findings.

5. Dedicated web site access for the report & databases.

6. All DataGroup / Data Institute products are generated for each client order to ensure that the

client receives the most up-to-date information. This also produces a unique database for the

client; for this reason we archive a copy of the unique database for use if the client needs any

future work from the database. http://www.dg-di.eu/about-delivery.html

7. However, in addition to the report there is a vast amount of data and services which a client

can access. This is done as part of the After-Sales Service.

http://www.dg-di.eu/about-method.html



http://www.dg-di.eu/about-delivery.html

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After-Sales Service & Client Support

There is a 12 months After-Sales Service from date of delivery. See After-Sales Service

When you want the database updated then you can simply order an update. When you want moredetailed information on any part of the database then you can order the information you need.

This database has been uniquely generated for each order and includes a 1 year After-Sales Service. A DataGroup / Data Institute service representative is assigned to each client (see the covering letterwhich accompanied your order delivery).

After-Sales Support: [email protected]

All reports, studies and consultancy assignments must inevitably mean that the publishers orconsultants are trying to interpret the needs and expectations of their clients. Unfortunately in mostcases, with most publishers, the clients will not receive all the data they need. This is not the case

with a DataGroup report.

The main problem that DataGroup has to resolve is that the database for each report would, if printed,be about 20 volumes of 600 pages for each volume. Clearly this amount of information (12,000pages) would be unusable and unwanted by the majority of clients - and indeed the cost would betwenty times greater.

Thus with After-Sales Services clients have 12 months Support whereby clients can obtain moreinformation and data on markets, industries, competitors, distribution channels, end users, et al.

These After-Sales Services are supplied Data Institute and DataGroup.

See: http://www.data-institute.org/about-publishers.html and

http://www.data-institute.org/about-faq-datagroup.html

All DataGroup / Data Institute products have a 12 month After-Sales Service and what this means isthat from 12 months after the data of purchase a client can obtain more data or services at a greatlyreduced cost. After-Sales Services are usually provided at 35%-55% of the normal retail costs. This isbecause this work is done during off-peak hours.

http://www.dg-di.eu/about-after-sales.html

Costs: The current cost is £75 per hour; this includes all researcher, computer & database access.

The cost of this After-Sales Service is low and provides a highly cost conscious method of acquiring avast amount of additional and more detailed information at a relatively low cost. No other Publisherprovides such a service to their clients

Delivery of the results produced is 7-14 days. For more urgent After-Sales Service work the costsdepend on the client’s time frame and the availability of our researchers.

Quotations: We quote client in advance for After-Sales Service work and this quotation states the totalcost of the job, plus the anticipated delivery time.

After-Sales Services are usually provides on DVD, Memory Stick, USB Hard Drive or online.




mailto:[email protected]


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Real Time Support

The After-Sales Service can offer client Real-Time Support. This usually involves using a softwareutility called TeamViewer (an installation program can be found in the Toolkit on your DVD or HardDisk Drive) which allows the After-Sales Service support staff to directly link to the client’s computerand work with the users in real time.

Resource Webs -v- Dedicated sites

This report includes a dedicated web site which is effectively a dedicated password protected folderwhich contains your database. Sometimes however clients also want the data loaded onto aResource Webs which will contain more than one database and which will be for the use of their staffand/or any other persons they may authorise. This is a Resource Web.

http://www.dg-di.eu/about-resource-webs.html

The main benefit of these Resource Webs is that the data is available to all the client’s staff and

professional advisors wherever they may be, and also when data is updated or new data is addedthen there is a common and know point of access for that data.

Resource Webs are maintained for the use of the client for a period of 12 months from the data of thelast data addition or update to that site.

These dedicated web sites are provided as part of the After-Sales Service. We try to make the website as visually attractive as possible and for this we simply need the client’s permission to use theircompany logo and their own website's colour themes.

Product Level

This is an Entry Level product

This is an entry level product which provides users with corporate, market and commercialintelligence on the company specified and the markets and industries in the countries listed. Thereport analyses the industry and markets with a basic point of reference, namely the Base ReferenceCountry. The report is formatted to give both a narrative description of the various matters covered aswell as provide readers with the ability to directly use the Chapters (via Microsoft Word or compatibleword processors) to produce their own reports and documentation. Experienced users will be able touse the spreadsheet and databases to generate highly detailed narrative reports, charts and graphics- as well as sophisticated business and commercial forecasts and models. The databases areprovided in both Excel spreadsheets and an Access database. Explanatory notes are provided asword processor documents or in PDF formats.

The Base Reference Country is usually the country of the client; however client can order a databasewith another Base Reference Country. If a different Base Reference Country that that provided in thisdatabase is needed, then client can order that as part of the After-Sales Service.

As an entry level product the narrative is necessarily illustrative in its terminology and seeks toprovide a basic degree of business logic and theory which indicates the rational applied in theforecasting and modelling methodology.

The databases provided are specifically designed to provide users with a uniform and consistentnumeric measure of both (normally) quantifiable values as well as conceptual factors which are(usually) only capable of qualification. Experienced users will know how to apply forecasting andmodelling software to the numeric data provided to generate highly detailed and discrete businessplanning models. The databases provided in this report can be used directly with databases on otherproduct, markets and industries in other countries. The databases are specifically designed to be

trans-national, currency neutral, inflation and purchasing parity adjusted, product parity and productequivalent adjusted, opportunity cost adjusted, and numerically compatible; they all can be linked or






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merged programmatically in business planning models to provide multi-national and multi-levelanalysis.

CURRENCY DATA: The currency figures given in this report are in U.S. Dollars. If the WindowsRegional Settings on your computer is set to a non-U.S. setting then the currency symbol ($) mayappear in the local currency (€, £, ¥, etc.). Either reset your Regional settings, or alternatively read allcurrency figures in this report as being U.S. Dollars (US$). There are separate spreadsheets anddatabase tables in the report which specifically give the data in various currencies, namely, Euros,Yen and Yuan, and these files are clearly marked.

Before using the data provided please read the Database Introduction as well as the Notes andDefinitions links found in each Chapter. There are subtle statistical nuances to some of thespreadsheets and databases which will help the user to fine-tune their models and forecasts to obtainmaximum effect and greater accuracy. The database flow chart and database description should beconsulted when applying statistical and modelling software.

To assist first time users, there is a Toolkit provided which will enable users to use various softwareoptions to enable the user to gain the maximum benefit from the databases.

Data Product levels

Because of the sheer volume of data potentially available from DataGroup it has been necessary tocreate a number of product levels which can provide clients with as little or as much data as theyneed.

Entry level

Entry level products provide the most basic degree of information supplied by DataGroup. Thisproduct can be used to build upon for various business forecasting and planning application. Typicallyfor a World Report this level will produce a database and spreadsheet count of over 13,000 recordsets. Each recordset, if converted into a graphical representation, will itself produce between 1 to 300individual graphs.

Corporate Modelling level

The Corporate level modelling products provide the tools and information for medium and long termcorporate forecasting and planning. These products are bespoke and are specific to the clientcompany in question. Typically for a World Report this level will produce a database and spreadsheetcount of over 24,000 record sets. Each recordset, if converted into a graphical representation, willitself produce between 1 to 450 individual graphs.

Econometric Modelling level

The Econometric level modelling products provide the tools and information for industry level,national, and international medium and long term forecasting and planning. These products arebespoke and are specific to the industry and/or geographic reach of the client company in question.Typically for a World Report this level will produce a database and spreadsheet count of over 39,000record sets. Each recordset, if converted into a graphical representation, will itself produce between 1

to 550 individual graphs.

Presentation level

The Presentation level products provide the information sought by a client company is a graphical oraudio-visual format which is bespoke for the particular needs and applications of the client companyin question.



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Getting Started with the Core Database

The database you have is extremely large and in order to orientate yourself it is best to first begin bynavigating through the report to familiarise yourself with the general layout.

Go to the Chapters section and click on the Site Map link to see the overall layout of the document.Click on the Legend link to see the pictorial representations of the types of data.

When you are ready to extract data it is best to begin with the Chapters section as this will give you ageneral overview of the data and also it will explain the data and the reasoning behind the document.

Once you are familiar with the type of data involved you can look at the database part of thedocument which is contained in the sections: Databases, Financial, Industry, Markets and Products.

The database part of the document is provided as both Excel spreadsheets and Access databases.

The Analysis Grids are planning tools and the Planning modules are to enable Business Planningwork at various levels of sophistication. Also in the Planning section you will see how to get additionaldata and resources when you need them.

Using the data

If you need to obtain general information or analysis then you can use the Chapters section. You canalso use the Word documents to produce your own reports by editing out what you do not need andadding your own comments or notations where necessary.

If you intend to use the databases for basic corporate planning purposes then it is best to downloadthe Excel files and the Access databases onto your local computer for manipulation. The data will runfaster if it is on a local hard disk drive. It is usually easier to use the Excel spreadsheets or Accesstables as a visual representation by charting the data and producing a graphical representation.

In you intend to use the data for intensive corporate planning purposes then download the data ontoyour local hard disk drive. This is where the various Scenarios become useful as you can use thisdata for modelling your corporate plans.

Toolkits

To assist users there is a Toolkit to be found on the 5 DVDs, online downloads, or Hard Disk Drive-

DVD 1

1. Data Manuals2. Document Templates3. Help files4. Manuals Templates5. Microsoft Utilities6. OpenOffice7. Business Plan Images8. Reference files9. US Census Data Tools

Because all DataGroup and Data Institute database are directly compatible with U.S.Government databases (especially the Department of Commerce, US census, NIST, Treasury,et al) it is sometimes useful for users to use US Government data handling tools to manage notonly US Government data, but also the data provided by DataGroup and Data Institute.

Alternatively, if you are already using this US Government software you can simply access theDataGroup and Data Institute databases with the same software. In generate DataGroup andData Institute databases we use the same database parameters, structures and field names asthose found in US Government databases, and thus uses can correlate and query databaseswithout undue difficulty.

10. Utilities & Tools



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DVD 2

1. Database Utilities2. Enterprise Resource Planning

3. Integrated Development Environment

If you intend to implement DataGroup and Data Institute databases online (internet or intranet)then an Integrated Development Environment is often the easiest route to data disseminationand data manipulation.

DVD 3

There are about 40 Statistical packages provided in this Toolkit. These are Open-Source packages which are generally free to use. The following packages areavailable:-

acslX, ADaMSoft, ADMB, AMPL, Analyse-it, Analytica, Angoss, APMonitor, ASReml, Automlab, Baudline, Bayesian Filtering Library, BMDP, BV4.1, CalEst, Ch, Chronux,COMSOL Script, CSPro, DADiSP, DAP, Data Applied, Dataplot, Demetra+, EJS, ELKI,Epi Info, Euler Mathematical Toolbox, EViews, FAME, FEniCS Project, Fityk, FlexPro,GAUSS, Genedata Analyst, GenStat, GeoDA, GLIM, GNU Data Language, GraphPadInStat, GraphPad Prism, gretl, Hermes, IBM SPSS Modeler, IBM SPSS Statistics,IDAMS/WinIDAMS, IDL, IGOR Pro, IMSL Numerical Libraries, Izenda, JAGS, JHepWork,JMP, JMulTi, Julia, KPP, LabPlot, LISREL, Macsyma, Madagascar, MadArtSoft,Madeline, Maple, Mathcad, Mathemagix,, Mathematica, MATLAB, MCSim, MedCalc,Minitab, MINUIT, MLwiN, Mondrian, NCAR Command Language, NCSS, NMath Stats,numberGo Publisher, NumXL, Octave, O-Matrix, OpenBUGS, OpenEpi, OpenMx, OptimJ,Orange, Origin, OriginPro, PARI/GP, Partek, PAW, Perl Data Language, Ploticus, Primer-E Primer, PSPP, PV-WAVE, Q research software, QtiPlot, Quantum, R, R Commander, RRattle GUI, RapidMiner, RATS, Revolution Analytics, ROOT, Sage, SALOME, Salstat,SAS, scikit-learn, Scilab, SciPy, SHAZAM, Shogun, SigmaStat, SigmaXL, Simfit, Simul,

SOCR, SOFA Statistics, SPC XL, Speakeasy, S-PLUS, SPSS, Stata, Statgraphics,STATISTICA, Statistical Lab, Stat-JR, Stats Helper, StatXact, SUDAAN, Systat, TheUnscrambler, Trilinos, Unistat, VisSim, Waffles, Weka, WinBUGS, Winpepi, X-12-ARIMA,XLfit, Xlisp-stat, XploRe, Yorick.

DVD 4

Microsoft Server 2003 utilities and resources. These are for clients implementingdatabases on Microsoft Server 2003 systems.

DVD 5

Microsoft Server 2008 utilities and resources. These are for clients implementingdatabases on Microsoft Server 2008 systems. Microsoft Server 2012 migrationutilities are also provided in this Toolkit.



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Proprietary Software packages

If you use proprietary corporate planning software then it is easy to use these DataGroup databasesas they are compatible with the following packages:-

Some Compatible Software products (See the Database Support site for a full list)

Project Management Software: 24SevenOffice, Assembla, AtTask, Basecamp, Central Desktop,Cerebro, Clarizen, codeBeamer, Collabtive, Concerto, Contactizer, CredAbility.info, dotProject, EasyProjects .NET, eGroupWare, FastTrack Schedule, Feng Office Community Edition, FogBugz,GanttProject, Gemini, Genius Inside, Glasscubes, Huddle, Hyperoffice, InLoox, JIRA, Journyx,Kayako, KForge, KPlato, Launchpad, LiquidPlanner, LisaProject, MacProject, MantisBT, MatchWareMindView 3 Business, Merlin, MicroPlanner X-Pert, Microsoft Office Project Server, Microsoft Project,Mingle, O3spaces, OmniPlan, Open Workbench, OpenProj, Oracle Project Portfolio Management,Planisware 5, Planner Suite, Pmplus+, Primavera Project Planner, Project KickStart, Project.net,Project-Open, Projectplace, ProjectSpaces, Projektron BCS, PSNext, QdPM, QuickBase, Redmine,Rachota, SAP RPM, Smartsheet, TaskJuggler, Teamcenter, Teamwork, Tenrox, Trac,TrackerSuite.Net, Ubidesk, VPMi, WorkLenz, WorkPLAN Enterprise, workspace.com, WebSPOC,Wrike, Zoho Projects

ERP Packages: Adempiere, BlueErp, Compiere, Dolibarr, Fedena, GNU Enterprise, JFire, KualiFoundation, LedgerSMB, OFBiz, Openbravo, OpenERP, Opentaps, Postbooks, SQL-Ledger, Tryton,WebERP, 1C:Enterprise, 24SevenOffice Start / Premium / Professional, abas ERP, Accpac, AgressoBusiness World, AMS Advantage, BatchMaster ERP, Bowen & Groves, CGram Enterprise, ClearEnterprise, Comarch Altum, Compass ERP, Compiere, Comprehensive Patient Administrator, COASolutions Ltd - Smart Business Suite, Consona Corporation – Intuitive / Made2manage / AXIS /Cimnet / Encompix / DTR, Epicor Enterprise, Global Shop Solutions One-System ERP Solutions,HansaWorld, ERP Adage (Adage), ERP LN (Baan), ERP LX (BPCS) ,ERP SL (SyteLine), ERP Swan(Swan), ERP SX.Enterprise (SX.Enterprise), ERP VE (Visual Enterprise), ERP XA (MAPICS), IFS

Applications, JD Edwards EnterpriseOne & JD Edwards World, JustFoodERP.com, kVASy4, Kingdee,Lawson M3 / Movex, Lawson S3, Log-net, Maximo (MRO), Microsoft Dynamics AX, MicrosoftDynamics GP, Microsoft Dynamics NAV, Microsoft Dynamics SL, Momentum, MyWorkPLAN,NetSuite, Openda QX, OpenMFG, Oracle e-Business Suite, Paradigm, PeopleSoft, Plex Online, QAD

Enterprise Applications, Ramco Enterprise Series 4.x, Ramco e.Applications, Ramco On DemandERP, MAS 90, MAS 200, MAS 500, Technology One, SAGE ACCPPAC, SAGE Pro ERP, SAGE ERPX3, SAP Business Suite, SAP Business ByDesign, SAP Business One, SAP Business All-in-One,TaskHub, SYSPRO, SYS-APPS, mySAP, Visibility.net, WorkPLAN Enterprise

Enterprise Feedback Management Systems: SynGro, Perseus (Vovici), Clicktools, DatStat, Inquisite,SPSS, FIRM (Confirmit), NetReflector, Allegiance, Enetrix, Satmetrix, RightNow Technologies,Mindshare Technologies, Data Illusion, KeySurvey (WorldAPP), Kinetic Data, CustomerSat(MarketTools), Medallia, Interview SA, Surveynomics, Invoke Solutions, Qualtrics, Fizzback,Grimmersoft, QuestManager, QuestBack, Globalpark, DataCycles, Dub Studios, eLustro, KinesisSurvey Technologies, Knowledge Wave, myK (myKnowledge), mySurveyLab.com, QuickSearch,Ransys, ResponseTek Networks Corp., TalkFreely, XTCO, Zarca



AGDMedia - Poland

Report Cost

Retailer Report

AGDMedia - Poland

Report Pricing

SECTION PART CONTENTS Euros €

1 A Base Data on AGDMedia 280

B.1 Financial: Management Figures 160

B.2 Financial: Full Balance Sheet (purchased with Part B.1) 90

C Product Data is provided with all the Parts below.

D Retail Locations data (Corporate) 750

E Advertising, Marketing & Events (Corporate) 750F Store Experience (Corporate) 750

G In-Store Customer Purchasing Behaviours (Corporate) 750

H Customer Handling (Corporate) 750

I Selling Strategies (Corporate) 750

J Pricing & Price Points (Corporate) 750

K Performance Analysis (Corporate) 750

L Strategies (Corporate) 990

M Retailing (Corporate) 990

N Supplemental Survey Data 990

2 CE Competitive Environment (Corporate) 1250

3 & 4 MR Market Research: Poland 950

Total cost if parts purchased separately: 11700

Total cost if ALL parts are purchased together: 5850

agdmedia poland.pdf

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