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Outline for Creating a Retail Concept

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Ric L. Anderson

This document outlines elements to consider when developing a strategic customer-centric plan for a retail concept brand. It discusses factors such as store location, size, layout and exterior/interior design; personnel roles and qualifications; level of customer service; necessary IT systems; allocation of decision-making powers; and merchandise categories, pricing strategies, sourcing, and product development process. The goal is to understand all elements that can be controlled and how they relate to defining and satisfying customer needs and building an emotional connection with customers.

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BUILDING A RETAIL CONCEPT BRAND SIMPLE ELEMENTS FOR CONSIDERATION IN DEVELOPING A RETAIL CHAIN INTO A LONG TERM STRATEGIC CUSTOMER-CENTRIC PLAN. A Strategic Plan has many names: Business model, Customer Value Proposition, Vision, Mission Statement etc It all depends on who is leading the discussion. There is no mystery in the creation of a Strategic Plan. It is not complicated, hard or beyond understanding. It does not take an MBA or a set of Consultants. It is simply a matter of understanding of the elements that you are able to control, how they interrelate to each other and most important define the customer that you will build your plan around. Build your Business Model in a manner that achieves an emotional and satisfied connection with the customers needs and expectations. I. Store: The domicile of where goods are stored and sold; Where the customer comes to purchase your products. Single store or multiple Stores? Size of store today Size of Store in Future. Is the size of the store fundamental to the Customer Experience? I.E. Bass Pro, Cabelas Do the size needs fit into the Financial Model? Is this size one that has easy scalability in other locations? Geographic Location: Country, State, Metro Area. Competitors Strategy Number of Competitors in an area? Location Where In relation to customer In relation to the competition Mall, Stand Alone or Strip Cente A to D locations? Access from the street Single access or multiple Corner or not? Middle of a Strip Center Type of building? Finished out or Warehouse? Exterior: Who should it be inviting? Need to visualize lifestyle or product? Image- Name, Location of sign, Logo, colors etc. Color of building, Outside building materials Windows or Not? Window Displays or Not? If so, the image of the store, hot product etc. Parking Access, Handicap- easy or not
Emotional Hook on the outside? I.e. Mechanical horses on the outside of a Bar-B-Que restaurant. Flower boxes? Trees in the Parking Lot, Bench to sit on? Stylized Trash Can? Drive up appeal: Can the customer relate their expectations to the emotional outside appeal? Lighting Parking lot On Building Going into the Store Store Windows Pleasant atmosphere in Parking lot: Flowers, Trees, Trash can out side? Reflects the attitude of the store? Bench to Sit on Customer access into Store One or multiple Easy to find Interior Navigation: Is the store laid out in the manner in which the customer would like to shop? Need to run an affinity program to give guidance to the natural flow of the customers product buying decisions. Are the aisles wide enough for the manner in which the customer shops? Need space for baby carriage? Shopping cart? To see a mirror? See related products in the store? Not feel crowded within the store? Checkout The Cashiers is one of the last people the customer is going to encounter as a relationship to the store. What training, personality, experience do you want that person to radiate in the checkout process? Can the customer find the cash register? Multiple Cashiers at the stand More than one Cash Stand Central Cash Wrap vs. in Department. Is it convenient? Are lines involved? Checkout process provides a pleasant experience? Place to put products? Write check? Place for handbag or coat when writing checks or signing credit card? Sight of the register recordings? Easy Price Check? Ability to gather Customer Profile Data? Visual representation
Do visuals help the customer meet their emotional expectations? Can the visuals create new expectations or improve on the relationship? New Products, Innovation, Fixtures: Can they be unique? When is it appropriate and when is uniform OK Utilization of Product? Ability to show how to best use the product? Can you try it? If electrical is there a plug in? Tester? IE Cosmetics, Dressing Rooms to try it on? Large enough Mirror? ability to see behind you? Place to sit down Hang your own clothes Operations Width of Aisles, Lighting, Fixtures etc. II. Personnel: We can control the people that we chose to represent the Brand in various states of customer touch points. Merchants Breakdown of responsibilities? Degree of responsibility at each level. Home grown vs. expertise from the outside importance of either or both? Talents and Abilities Ability to pick Product? History of being profitable in this category? History of building new revenue channels New Innovative Products to Market Building of Events Ability to analyze results to make better decisions. Financial In House or Outsourced. What degree of analysis is needed? What types of Org. Chart? Levels and number of people? Planning and Allocation HR Outsourced? Logistical Personnel Store Employees Central Personnel
How are the different functions aligned in a Organizational Chart? Merchant Lead Teams or Individual function teams. III. Service Degree of service that completes the Customer Value Proposition. IV. IT Systems and Support Systems Do the systems fit the personnel and product needs? Do they reduce Excel Spreadsheets and manual labor in many decision making roles? Are they accessible from multiple locations Do they easily incorporate Merchandising, Financial and inventory into one unified system. Are the simple to teach, train, add on, and fast? V. Allocation of Empowerment? What decisions can be made at what level of the organization? VI. Total Submersion ROI GM$ to Inventory Assets for Marketing Allocation of Floor Space by size, transition and quality of space. Time, effort and costs for distribution VII. Competition: Customer Value Proposition Who is your competitor? Products Service Location Discount, High-Low, Marketing How many true competitors do you have in the Market? Do they have Best Practices that can be absorbed? VIII. IX. Merchandise: Category: What Products One Product Cat or multiple Products to be sold Quality Pricing Quantity One Product: Good, Better, Best or Wide assortment of one level. Relevancy: To the Local Market
To the Industry To the Competition. Exclusive merchandise Branding Strategy Use of National Vendors 1st Cost Agents Direct Private Label X. Merchandise Strategy Trend Cycle: 1st with newest trends, fashions, products 2nd with best value 3rd with lowest price and discount Pricing High Low Good Value some promotions Best Price No Promotions Discount XI. Store Operations: Receiving Central or by Store Training of the employees: What degree, how, when, cost effectiveness. XII. Internet: What and how can the Internet be used by the business. Merchandise Revenue Channel Training Best Practices among Stores Customer Connection Blog Product Review Tutorial, Ratings, Features and Benefits. XIII.Direct Mail: Catalog, Mailers, Postcards XIV. Understanding of the Product Category Market Development of Product Understanding of the Wholesale Business Model
Length of development time to market Country of Origin Labor Costs Materials Quality/ Value Relationship Multiple Products or just one? Multiple Products Multiple Genders One Gender If Just One: Good, Better, Best? Wide Assortments or Deep? Personalization
Length of development time to market Country of Origin Labor Costs Materials Quality/ Value Relationship Multiple Products or just one? Multiple Products Multiple Genders One Gender If Just One: Good, Better, Best? Wide Assortments or Deep? Personalization

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Outline for Creating a Retail Concept

  • 1. BUILDING A RETAIL CONCEPT BRAND SIMPLE ELEMENTS FOR CONSIDERATION IN DEVELOPING A RETAIL CHAIN INTO A LONG TERM STRATEGIC CUSTOMER-CENTRIC PLAN. A Strategic Plan has many names: Business model, Customer Value Proposition, Vision, Mission Statement etc It all depends on who is leading the discussion. There is no mystery in the creation of a Strategic Plan. It is not complicated, hard or beyond understanding. It does not take an MBA or a set of Consultants. It is simply a matter of understanding of the elements that you are able to control, how they interrelate to each other and most important define the customer that you will build your plan around. Build your Business Model in a manner that achieves an emotional and satisfied connection with the customers needs and expectations. I. Store: The domicile of where goods are stored and sold; Where the customer comes to purchase your products. Single store or multiple Stores? Size of store today Size of Store in Future. Is the size of the store fundamental to the Customer Experience? I.E. Bass Pro, Cabelas Do the size needs fit into the Financial Model? Is this size one that has easy scalability in other locations? Geographic Location: Country, State, Metro Area. Competitors Strategy Number of Competitors in an area? Location Where In relation to customer In relation to the competition Mall, Stand Alone or Strip Cente A to D locations? Access from the street Single access or multiple Corner or not? Middle of a Strip Center Type of building? Finished out or Warehouse? Exterior: Who should it be inviting? Need to visualize lifestyle or product? Image- Name, Location of sign, Logo, colors etc. Color of building, Outside building materials Windows or Not? Window Displays or Not? If so, the image of the store, hot product etc. Parking Access, Handicap- easy or not
  • 2. Emotional Hook on the outside? I.e. Mechanical horses on the outside of a Bar-B-Que restaurant. Flower boxes? Trees in the Parking Lot, Bench to sit on? Stylized Trash Can? Drive up appeal: Can the customer relate their expectations to the emotional outside appeal? Lighting Parking lot On Building Going into the Store Store Windows Pleasant atmosphere in Parking lot: Flowers, Trees, Trash can out side? Reflects the attitude of the store? Bench to Sit on Customer access into Store One or multiple Easy to find Interior Navigation: Is the store laid out in the manner in which the customer would like to shop? Need to run an affinity program to give guidance to the natural flow of the customers product buying decisions. Are the aisles wide enough for the manner in which the customer shops? Need space for baby carriage? Shopping cart? To see a mirror? See related products in the store? Not feel crowded within the store? Checkout The Cashiers is one of the last people the customer is going to encounter as a relationship to the store. What training, personality, experience do you want that person to radiate in the checkout process? Can the customer find the cash register? Multiple Cashiers at the stand More than one Cash Stand Central Cash Wrap vs. in Department. Is it convenient? Are lines involved? Checkout process provides a pleasant experience? Place to put products? Write check? Place for handbag or coat when writing checks or signing credit card? Sight of the register recordings? Easy Price Check? Ability to gather Customer Profile Data? Visual representation
  • 3. Do visuals help the customer meet their emotional expectations? Can the visuals create new expectations or improve on the relationship? New Products, Innovation, Fixtures: Can they be unique? When is it appropriate and when is uniform OK Utilization of Product? Ability to show how to best use the product? Can you try it? If electrical is there a plug in? Tester? IE Cosmetics, Dressing Rooms to try it on? Large enough Mirror? ability to see behind you? Place to sit down Hang your own clothes Operations Width of Aisles, Lighting, Fixtures etc. II. Personnel: We can control the people that we chose to represent the Brand in various states of customer touch points. Merchants Breakdown of responsibilities? Degree of responsibility at each level. Home grown vs. expertise from the outside importance of either or both? Talents and Abilities Ability to pick Product? History of being profitable in this category? History of building new revenue channels New Innovative Products to Market Building of Events Ability to analyze results to make better decisions. Financial In House or Outsourced. What degree of analysis is needed? What types of Org. Chart? Levels and number of people? Planning and Allocation HR Outsourced? Logistical Personnel Store Employees Central Personnel
  • 4. How are the different functions aligned in a Organizational Chart? Merchant Lead Teams or Individual function teams. III. Service Degree of service that completes the Customer Value Proposition. IV. IT Systems and Support Systems Do the systems fit the personnel and product needs? Do they reduce Excel Spreadsheets and manual labor in many decision making roles? Are they accessible from multiple locations Do they easily incorporate Merchandising, Financial and inventory into one unified system. Are the simple to teach, train, add on, and fast? V. Allocation of Empowerment? What decisions can be made at what level of the organization? VI. Total Submersion ROI GM$ to Inventory Assets for Marketing Allocation of Floor Space by size, transition and quality of space. Time, effort and costs for distribution VII. Competition: Customer Value Proposition Who is your competitor? Products Service Location Discount, High-Low, Marketing How many true competitors do you have in the Market? Do they have Best Practices that can be absorbed? VIII. IX. Merchandise: Category: What Products One Product Cat or multiple Products to be sold Quality Pricing Quantity One Product: Good, Better, Best or Wide assortment of one level. Relevancy: To the Local Market
  • 5. To the Industry To the Competition. Exclusive merchandise Branding Strategy Use of National Vendors 1st Cost Agents Direct Private Label X. Merchandise Strategy Trend Cycle: 1st with newest trends, fashions, products 2nd with best value 3rd with lowest price and discount Pricing High Low Good Value some promotions Best Price No Promotions Discount XI. Store Operations: Receiving Central or by Store Training of the employees: What degree, how, when, cost effectiveness. XII. Internet: What and how can the Internet be used by the business. Merchandise Revenue Channel Training Best Practices among Stores Customer Connection Blog Product Review Tutorial, Ratings, Features and Benefits. XIII.Direct Mail: Catalog, Mailers, Postcards XIV. Understanding of the Product Category Market Development of Product Understanding of the Wholesale Business Model
  • 6. Length of development time to market Country of Origin Labor Costs Materials Quality/ Value Relationship Multiple Products or just one? Multiple Products Multiple Genders One Gender If Just One: Good, Better, Best? Wide Assortments or Deep? Personalization
  • 7. Length of development time to market Country of Origin Labor Costs Materials Quality/ Value Relationship Multiple Products or just one? Multiple Products Multiple Genders One Gender If Just One: Good, Better, Best? Wide Assortments or Deep? Personalization