Retail Management

Heartstrings

I. Introduction1.1 Objective of the Study

•To be able to understand different concepts regarding retail management.

•To learn and gain additional knowledge about the nature if retail stores nowadays.

•To have an idea of what does retail mix, buying decision and retail market strategy all about and how it will help us in our future ventures as marketing students.

•To assist, provide new ideas and help the Heartstrings to maintain or even improve its current share in the market.

1.2 Vision/Mission of the Company

VisionOur company, Heartstrings, envisions itself as a business with committed employees who have the dedication to

improve human life by providing them the best quality of bags for the benefit our customers and of the community.

MissionWe seek to fulfill our business’ vision by providing well-functional products for every customer, as well as by

maintaining high quality standards that will be the venture in whatever plans it would implement.

II. Retail FormatCategory Specialist

2.1 Retail Mix

Retail Mix Heartstrings

Customer Service Low

Store Design and Display Average

Advertising and Promotion Average

Location High

Merchandise Assortment High

Pricing Average

Customer Service Store Design and Display

Advertising and Promotion

Merchandise Assortment

Location

2.2 Additional Information

NameMarcelina

JeruasoMaricel Berochaw Eva Farrales Mark Constalez

Age 38 23 secret 24

Address San Mateo Antipolo Montalban Pasig City

Occupation sewer student, ICCT nurse bartender

Civil Status Married Single Married Married

Reason for Buying personal use for school for work abroad personal use

Why Heartstrings old customer near the school

attracted atstore design look for pink bags

Allotted Budget P500 P1,000 less than P1,000 P500

Look for: quality design quality color (pink)

•Direct Competitor Analysis

Kaila’s Bags and AccessoriesCosé (inside the Sta. Lucia East Department Store)

III. Market Segmentation3.1 Bases for Market Segment

Demographic Segmentation

Age

0% 0%3%

37%41%

12%

4% 3%

0%5%

10%15%20%25%30%35%40%45%

Gender

95%

5%

Female

Male

Civil Status

65%

35%

Single

Married

Level of Income

12%

86%

2%

Low

Middle

High

Education

0% 9%

42%

49%

Prepartory

Elementary

High School

College

Employment

14%

46%2%

38% Unemployed

Housew ife/Mother

White-collar Worker

Blue-collar Worker

Budget/Buying Power

51%

38%

9% 2%

P100 - P500

P501 - P1,000

P1,001 - P4,000

P4,001 - up

Location (Density)

55%

45%

0%

Urban

Sub-urban

Rural

Location (Geographic)

15%

25%

21%

19%

11%

9%

Marikina

Cainta

Antipolo

Pasig

San Mateo

Montalban

Psychographic Segment

63%

26%

6%

3%

2%

High Spirits

Home Makers

Bystanders

Tight Guards

SmoothSailers

Psychographic Segmentation

Behavioral Segmentation

Purchase Frequency

57%

43%Regular

Irregular

User Status

30%

14%

21%

35% Nonuser

Ex-user

Potential User

Current User

User Rate

4%11%

85%

Light

Medium

Heavy

Loyalty Status

55%

15%

30%

Total

Some

None

Readiness

30%

35%

12%

23%

Unaware

Aware

Interested

Intending to Buy

Needs Segment

Needs Segment

75%

25%

Functional Needs

PsychologicalNeeds

3.2 Buying DecisionLimited Problem Solving

3.3 Buying Decision Process3.3.1. Need Recognition

StraightforwardAmbiguous

Types of NeedsFunctional NeedsPsychological Needs

3.3.2. Information Searcha. Amount of Information Search

Value of the SearchCost of the Search

b. Sources of Information Internal Sources External Sources

3.3.3. Evaluation of Alternatives The Multiattribute Attitude Model

A. Information about Stores Selling Bags

Store Characteristics

HeartstringsKaila’s Bags and

Accessories

Cosé (inside the Sta. Lucia

Department Store)

Prices Average Low High

Total Travel Time (in minutes)

15 20 25

Typical Checkout Time (in minutes)

5 5 10

Number of Products and Sizes

High Low Average

Fashion-Oriented Yes Yes Yes

Quality of Merchandise

Yes No Yes

B. Beliefs About Store Performance Benefits

Performance Benefits

HeartstringsKaila’s Bags and

Accessories

Cosé (inside the Sta. Lucia

Department Store)

Economy 7 9 5

Convenience 10 8 7

Assortment 9 4 8

Availability of Product and Information

1 8 9

Importance Weights Performance Beliefs

Characteristics

Teen ParentHeartstring

sKaila Cosé

Economy 7 10 8 9 5

Convenience 5 8 10 8 6

Assortment 10 5 9 4 8

Availability of Product

Information8 3 1 3 7

OVERALL EVALUATIO

N

Teen 204 167 201

Parent 208 183 159

3.3.4 Choice of Alternatives

3.3.5. Purchasing the Merchandise

3.3.6. Postpurchase Evaluation

3.4 Buying Roles

InitiatorInfluencerBuyerUserDecider

Factors Heartstrings

City/MunicipalityMarikina, Cainta, Antipolo, Pasig, San

Mateo, Montalban

Age 10-40 years old

Gender female, male

Status single, married

Employment student, employee, housewife (mother)

Usage Situation school, work, personal use, collection

Budget/Buying Power P 200 – P4,000

Social Class middle class

Retail Offering

Pricing average

Merchandise Assortment High

IV. Retail Market4.1 Retail Market

4.2 Sustainable Competitive Advantage

Factors Heartstrings

Customers Loyalty Has loyal customers

Positioning Quality products at reasonable price

Service Low service

Database Retailing NONE

Unique Merchandising Exclusive merchandise

Location Mall (convenient location)

Vendor Relation Exclusive manufacturer

Effective, Committed Employees Has knowledgeable and skilled employees

Low-Cost Operation Few employees, has own manufacturer

Sustainable Competitive Advantage Ratings (based on our interviews and observation)

LocationVendor RelationCustomer LoyaltyLow-Cost OperationEffective, Committed Employees

4.3 Growth Strategies

Retail Format Development/Product Development

offering of wallets and slippers

Diversification NONE

Market Penetration offering different types of

bags (backpack, shoulder bag, body bag) with the same design

Market Expansion/Market Development

opening new stores in Visayas and Mindanao Region

V. Recommendation(1) Retail Mix• Store Design and Display Advertising and Promotion

(2) Product Development - Creation of Hats

(3) Opening of New Retail Store at Robinsons Place Metro East

(4) Made-to-order Personalized Bags

(5) Create an Official Website

(6) Provide Data Base Retailing

Presented by:

Gina Niña AdoroDaisy Ann AquinoMary Rose de Vota

Jeniffer Sanico