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field report 1: TARGET
OVERVIEW: The Target Corporation, originally the Dayton Dry Goods Company and later the Dayton Hudson Corporation, is an American retailing company. It is the second-largest discount retailer in the United States, Walmart being the largest. It serves as a discount department store that caters to shoppers on a budget, a hypermarket, and a superstore that carries electronics for a reasonable price. Their revenue is US$ 73.301 billion (2012) and has an operating income of US$ 4.456 billion during the same year. Other figures for 2012 are as follows: Net income US$ 2.999 billion,Total assets US$ 48.163 billion, and total equity is US$ 15.821 billion. (source: wikipedia.org)
entrance of the Target from the mall: 1. The left side of the entrance is the pharmacy; 2. Empty space in the middle, aka "decompression zone"; and 3. The right of the entrance are cosmetics and clothing.
ANALYSIS. Upon entry on both the mall and the street
entrance, it is clearly observed that the Lakewood branch utilizes Underhill’s
theory of the Invariant Right. The management placed the Cosmetics and Women’s
clothing aisle on the entryway turning to the right while school supplies and
the Pharmacy counter is on the left. This layout is the reason why this branch
is such a success, as there is a smooth flow of shoppers. The management
clearly understands that the mall or the habit of shopping itself is catered to
the female customer, so they strategically placed items of interest to the left
(since customers are on the right, they would naturally look the other way).
Shoppers can scan and pick up items they would like to purchase in just one stroll around the store. An observation about this store is that the management placed their clothing merchandise near the entrance for the customers to notice these items. Then they place the staples and groceries towards the center, and finally the electronics and home furnishings on another floor level. Through this setup, they can draw in customers towards the center of the store, giving them more opportunities to browse and shop.
FINDINGS. As stated in the overview, Target is a known discount retailer in the US. Most of the shoppers that go here often can afford the merchandise by themselves. Most of the customers ended up shopping for things more than their errand. The shopper under study (my mother), she can afford to buy some extra clothing to his son, even if it wasn't in the plan.
Though the store has a good layout in guiding the customers through a maximum shopping experience, the management failed to understand the sensation of "petting" and its importance for the buyer to decide to purchase. The store carries a lot of merchandise and it can be understood that store space needs to be maximized, so tables are not placed on strategic locations and mostly racks are used to hang clothing. This specific strategy caused disruption on the shoppers momentum, especially that shoppers has to reach a certain height and maneuver through racks placed in a compressed space to examine a merchandise. But in spite of their shortcomings, this Target store is gaining revenue because of the quality of the merchandise for a low price. This has come to a conclusion that above all, a customer feels highly satisfied if one has reached a bargain through its purchase regardless of the environment.
Though the store has a good layout in guiding the customers through a maximum shopping experience, the management failed to understand the sensation of "petting" and its importance for the buyer to decide to purchase. The store carries a lot of merchandise and it can be understood that store space needs to be maximized, so tables are not placed on strategic locations and mostly racks are used to hang clothing. This specific strategy caused disruption on the shoppers momentum, especially that shoppers has to reach a certain height and maneuver through racks placed in a compressed space to examine a merchandise. But in spite of their shortcomings, this Target store is gaining revenue because of the quality of the merchandise for a low price. This has come to a conclusion that above all, a customer feels highly satisfied if one has reached a bargain through its purchase regardless of the environment.
field report 2: JCPENNEY
note: not enough photos to show Underhill's theory since sales clerks are roaming around the store.
OVERVIEW. JCPenney in Lakewood, California is a mid-range department store that caters to suburban women and youth. Aside from clothing and shoes, it carries products such as optical studios, jewelry repair, and portrait centers. According to the latest update in Wikipedia, it's operating income for the 2012 fiscal year is -US$2 million, but an annual revenue is US$17.2 billion. Other figures include: Net income is at US$-152 million and total assets at US$11.4 billion dollars. As of 2013, JCPenney's competitors were Sears, Kolh's and Belk. The other two - Montgomery Ward and Melvin's - got bankrupt by 2006.
ANALYSIS. Upon entry from either the mall or the the entrance from the street, it can be clearly seen that there is no Decompression Zone in this store. This branch has a familiar setting on all its entrances; they place their mannequins near the entrance of the store. Shoppers who were browsing for a complete outfit tend to past the reference made by the management through the clothing of the mannequins. But it has been clearly set-off by a clever way of setting up the Customer Service desks (aka cashiers) near the exits to ensure shoppers that they have roamed the whole store. But for some shoppers who are just going in, this may seen as a hindrance because the line made by the buyers blocks them from the merchandise.
The price range of merchandise for this store is around $15-$35 for clothing. It is a little more costly than Target, but the brands the store carries is more appealing to a broad demographic. For example, one can buy a dress at Target, but just for 5 dollars more, the same shopper can buy a more beautiful dress made with nice material and carries a brand. JCPenney acknowledges their success through the female shoppers, that is why they set up more tables than racks to showcase their merchandise. This branch allows the shoppers to have an experience with the "potential item" by letting the customers touch the material, examine it more carefully and if a buyer really wants it, there is a fitting room nearby to try some of the clothes.
ANALYSIS. Upon entry from either the mall or the the entrance from the street, it can be clearly seen that there is no Decompression Zone in this store. This branch has a familiar setting on all its entrances; they place their mannequins near the entrance of the store. Shoppers who were browsing for a complete outfit tend to past the reference made by the management through the clothing of the mannequins. But it has been clearly set-off by a clever way of setting up the Customer Service desks (aka cashiers) near the exits to ensure shoppers that they have roamed the whole store. But for some shoppers who are just going in, this may seen as a hindrance because the line made by the buyers blocks them from the merchandise.
The price range of merchandise for this store is around $15-$35 for clothing. It is a little more costly than Target, but the brands the store carries is more appealing to a broad demographic. For example, one can buy a dress at Target, but just for 5 dollars more, the same shopper can buy a more beautiful dress made with nice material and carries a brand. JCPenney acknowledges their success through the female shoppers, that is why they set up more tables than racks to showcase their merchandise. This branch allows the shoppers to have an experience with the "potential item" by letting the customers touch the material, examine it more carefully and if a buyer really wants it, there is a fitting room nearby to try some of the clothes.
FINDINGS: Unlike Target, JCPenney is more focused on on clothing and furniture, therefore it is more crucial for this store to understand customer psychology. Since its merchandise is more streamlined and they only carry a few brands, the advantage they have is to spread them out around the store. This is where they obey Paco Underhill's "Butt-Brush Theory". This branch is an anchor store has a very strategic location inside the mall, because not only it has a spacious parking garage outside, the bus stops conveniently near the store. Since the flow of people initially comes through this store, one can safely assume that most customers would window-shop on the first store they encounter. This would not be a problem for the store since there is a lot of space for browsers to look around, and for real shoppers to examine an item.
Another reason that this branch is successful in reaching out to the female shoppers is that the management placed the women's clothing section and girl's (juniors) section in 2 out of their 3 entrances. It is the female shopper who has the purchasing power and holds the finances, so their companions have not much say on their shopping choices. They even put containers that hods tiny makeup kits at the checkout counter for them to have a look at it while waiting in line.
It can be concluded that this branch can be more successful in its business if the layout remains the same, but at the same time, push the items a little back from the entrance for the store to have a "Decompression Zone". That way, mannequins that are set up as reference for a complete outfit can be viewed and increase sales because of the showcase.
Another reason that this branch is successful in reaching out to the female shoppers is that the management placed the women's clothing section and girl's (juniors) section in 2 out of their 3 entrances. It is the female shopper who has the purchasing power and holds the finances, so their companions have not much say on their shopping choices. They even put containers that hods tiny makeup kits at the checkout counter for them to have a look at it while waiting in line.
It can be concluded that this branch can be more successful in its business if the layout remains the same, but at the same time, push the items a little back from the entrance for the store to have a "Decompression Zone". That way, mannequins that are set up as reference for a complete outfit can be viewed and increase sales because of the showcase.
field report 3: MACY'S
OVERVIEW. Macy's, originally R. H. Macy & Co., is a mid-range to upscale chain of department stores owned by American multinational corporation Macy's, Inc. It is one of two divisions owned by the company, with the other being the upscale Bloomingdale's. As of January 2013, it operates 798 locations in the United States, with a prominent Herald Square flagship location in Midtown Manhattan, New York City. It also has eSpot ZoomShops kiosks in over 300 store locations selling consumer electronics. Macy's is known for its niche in popular culture and the diversity of its merchandise. It competes with Belk, Bon-Ton, and Dillard's; more upscale facilities compete with Nordstrom, Neiman Marcus, Lord & Taylor, and Saks Fifth Avenue. It has an annual revenue of US$24.892 billion (FY2009) and an operating income US$ 1.863 billion (FY2007).
ANALYSIS. Macy's, being a front runner in retailing, has utilized Paco Underhill's study of major shopper behaviors. One powerful observation is that Macy's segregate its merchandise according to brand and class. For example shown in the picture below (though not clear), the management placed the upscale brands of handbags on the left and placed on beautiful and well-lighted glass cases. On the right are the handbags that are piled on a stack, waiting to be sold for clearance. Shoppers would naturally notice the high end bags, with the way they are presented in the cases. So for some shoppers who wants to buy a handbag and cannot afford the price of a branded one, they can browse to the right side of the aisle, and look for similar designs of a handbag but with a fraction of the price.
handbags that belong to a lower price range are on the right, piled up or hung on racks.
Another thing that was noticed is that Macy's is the biggest store when it comes to area. The management utilized their space by spreading their products through the different floor levels of the store. For items that caters to the female demographic, the Lakewood branch used two floor levels for optimal shopping experience. Because of this, shoppers can easily maneuver from each section of the store. There is an ample space between the racks and the corridors, though the escalators are a little skinny. This branch also purposely made the "beauty counters" take up a lot of space, so female shoppers can have free makeovers before browsing. This marketing trick worked for this branch because the beauty bar served as a "Decompression Zone" for potential buyers by making them familiar with the layout of the store while sitting.
Macy's is also a genius by using their mannequins and catalogs to guide browsers for purchasing the whole "outfit" than buying a single item. They strategically clothe their mannequins with merchandise that they would like to push to sell, and place it near fitting rooms. Then a table and a set of racks are placed beside the mannequin, where separate items featured were on the table, waiting to be examined.
Macy's is also a genius by using their mannequins and catalogs to guide browsers for purchasing the whole "outfit" than buying a single item. They strategically clothe their mannequins with merchandise that they would like to push to sell, and place it near fitting rooms. Then a table and a set of racks are placed beside the mannequin, where separate items featured were on the table, waiting to be examined.
FINDINGS. The Lakewood branch of Macy's has been successful in terms of revenue because it caters to two markets: the middle-class and upscale customers. Macy's has shown a perfect example on how consumer culture bridges the gap between social classes. One homemaker can brag that she shops at the same place as a female CEO. In tough economic times, it is very crucial for middle-class to upscale department stores like Macy's to understand shopping anthropology, or else the business will lose a lot of customers and go to their competitors that offers lower prices for their merchandise. In this case, they would even go to Ross for a good deal even if it is a hassle to shop there. Like JCPenney, it is highly crucial for Macy's to follow Paco Underhill's recommendations because not only that their merchandise caters to a smaller demographic, but the prices are also becoming steeper. Therefore the way that they push their items to be sold must cater to how does the buyer respond to the cues of the marketing team.