First step - Select a retailer. Remember a retailer sells to the"ultimate consumer." You need to choose a retailer with a physicalstore who sells a physical product - otherwise it will be difficultto complete this project. If you are thinking of opening your ownstore, choose a retailer that sells the same type of merchandisethat you would like to sell. (i.e., ski shop, musicstore, pizza place, furniture store, apparel boutique, hardwarestore etc...)
Second step - Interview the manager or owner at the retail storeyou selected. This is a required part of your project. Your papershould include the following:
A. History of the Company: (40 pts.)
Who did you interview? (Full name and position.)
How long have they been in business?
How has their business changed over the years?
What is their mission statement?
Do they plan to expand, penetrate, diversify, or change theirretail format in the near future?
B. Retail Strategy
1. Who is their Target Market: (15pts.)
Define their customer according to demographics (age, gender,income level, education etc.)
Trade Area - primary, secondary, tertiary (refer to Chap. 8)
2. Merchandise Assortment: (15pts.)
What are the major brands they carry?
Do they have private brands?
Where does this retailer's merchandise fit on the category lifecycle? (Chap. 12)
Why do you think they chose this stage of the life cycle?
Does this retailer carry convenience goods, shopping goods orspecialty? (Chap. 7)
3. Human Resources: (15 pts.)
How does this store prepare and train their sales people?
Are they paid on commission, salary, or hourly wage?
Are the sales people allowed to cross sell? (if there areseparate departments)
Do they outsource any activities in their business?
4. Store Location: (15 pts.)
Where is this retail store located? (CBD, Shopping Center,Specialty Center, MXD)
Why do you think they chose this location?
Is this site accessible for the customer?
What type of lease do they have? (may not be willing to givethis information out)
5. Pricing: (15 pts.)
What is this stores pricing policy? (Everyday Low Pricing,High/Low Pricing etc.)
What other practices do they use to compete withprice? (Coupons, Rebates, Price Bundling)
Does this retailer use the cost-oriented method of pricing ordemand-oriented pricing.
Is there a frequent shopper program?
6. Communication Mix: (15 pts.)
What type of paid advertisements does this business use?
·What type of unpaid communication does this businessuse? (Publicity)
·Does this retailer use cooperative advertising? With whom?
·What type of sales promotions does this retailer use? (Sales,Sampling, Demos, Contests etc.)
7. Store Layout: (15 pts.)
What type of design layout does this store use? (Grid,Racetrack, Free Form etc.)
Is it effective for customer flow?
What type of fixtures do they use?
What type of lighting are they using?
Is music constantly playing? What type?
What type of scent is in the store? Does it detractor attract?
8. Customer Service: (15 pts.)
What type of services does this store offer? (Alterations, gift-wrapping etc.)
Talk to 3 customers - What is their perception of this store’scustomer service?
How does this store handle customer complaints?
Does this store have “mystery shoppers” to check level ofservice?
Is the salesperson “empowered” to make decisions or is it up tomanagement?
C. Competitive Advantage: (40 pts.)
Does this retailer have a “competitive advantage” over similarstores?
How can they retain this advantage or achieve an advantage overtheir competition?
(This section should be 2-3 paragraphs minimum -- think aboutit!)
