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    Davide Cortellino

    Cpr Number: 270887-4089

    A142_ The store as distribution channel, brand and

    shopping scene.

    Teacher: Jesper Aastrup

    Title: How Feltrinelli store environment and assortment

    initiatives affect in-store behavior.

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    1.Introduction

    This synopsis will discuss the store environment of Italian chain Feltrinellis book stores ,

    in order to understand if its layout and selling environment is well-conciliated with the

    particular recreational motivational orientation that, in the most of cases, characterizes its

    target customers. Indeed, the customers orientation can be inferred analyzing the retail

    offering, which can be defined as recreational needs oriented for what concerns the book

    category (Velitchka & Barton, 2006)

    In addition, we will analyze a recent initiative undertaken inside its main big stores, where

    new product categories have been added to its initial category assortment; this in order to

    understand if this strategic movement can find raison detre within the available assortment

    theories.

    2.Case presentation

    Feltrinelli store environment

    With its 100 shops distributed within the Italian territory, Feltrinelli is the biggest chain for

    Books and Music in Italy. Unlike typical book stores, usually used in the past just to purchase

    our favourite new book, in order to read it at home, Feltrinelli stores have developed new way

    to sell the Book category, adding to this core business complementary categories, and in

    this way becoming a Point of Sale where different kind of products are made available to the

    customers, developing a differentiation based on taste and pleasure.

    In addition to Books, feltrinelli stores offer a wide assortment of music products(cds, long

    play records), movies, games and a number of gadgets that vary from diaries to stationery, up

    to the more recent introduction of luxury tea lines(Le Palais des ths). This underlines the

    Feltrinelli strategic aim to be evaluated as a unique solution to the more general Cultural

    Entertainment need, offering products intuitively linked to the natural features of bookstore,

    in a continuous research of synergies within all the categories.(Norberto Piersigilli, Feltrinelli

    category manager).

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    Feltrinelli stores are characterized by warm colors(red and orange), used in the stores to

    indentify the products kind on the shelves and to reproduce on the white walls, on posters,

    and on the entrances/store windows, the feltrinelli logos. Usually, bright lights are utilized in

    the stores, which with the wood parquet on the floor(exciting colour) and the white walls,

    allow a better identification and examination of the products offered (Areni & Kim, 1994)

    A free-flow layout is used as store pattern, where the shopper has more freedom to move in

    any direction and where the fixture are arranged in an irregular pattern, encouraging in this

    way browsing and creating a more visually appealing environment (Mcgoldrick, 2003).

    Reading zones are arranged inside the stores, where the customer can, without time limits,

    spending time reading the interested book or just sitting to chat. The reading areas are also

    used as shelves for the launch of new books or to promote particular offers, due to the high

    traffic of people created by this zones. Music stations are also arranged inside the musicdepartment, allowing in this way a direct experience of the product from the consumer point

    of view. Both examined typologies provide reassurance about the products, moving in this

    way the shopper toward buying (Mcgoldrick, 2003), and creating a more interactive/exciting

    environment.

    Slow classical and Jazz music are used as aural components, well-suitable for the kind of

    consumer interactive experience linked to the products sold and pushing, in this way, a more

    long time spending inside the store from the consumers side (Mcgoldrick, 2003).

    Help desks are arranged in the store for the customers that need to find a specific book

    without loosing time in its research, with a number of shop assistant ready to make you reach

    the exact shelf where the product is placed.

    Furthermore different cultural initiatives are developed during the year, where singers,

    writers, artists and so on, promote their new works. This kind of promotional events are a

    very useful tool to generate excitement. The festive atmosphere of an in-store event feeds

    enthusiasm (Sykes, 1994), and could have as natural consequence an increase of the arousal

    level during the shopping experience.

    Introduction of new product categories

    During 2009, a new series of product lines were introduced inside Feltrinelli main stores,

    including Luxury Tea lines, refined clothes brand and design products for the home

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    environment; a complementary product bundle to the main book category. This assortment

    decision could be designed to appeal consumers preference for complementary items; in this

    way reflecting Feltrinelli strategy to include in the assortment items characterized by an high

    degree of intellectual innovativeness.

    3.Theoretical angles

    We can assume as starting point the idea that the Feltrinelli standard customer should be

    recreationally oriented. This hypothesis can be motivated by the fact that shopping for a book

    is supposed to be mainly recreational (Velitchka & Barton, 2006) and consumer could visit

    the store to derive pleasure from the visit itself (Dawson, 1990). As a consequence we will

    discuss if Feltrinelli store environment is suitable for the kind of motivational orientation that

    characterized its customers, and if the interaction between the two variables lead to some

    profitable modification of customer behaviors inside the store. In this kind of analysis we will

    use Velitchka theory, discussed in his article. Its relevant because it explains how and when

    a retailer should employ a particular kind of store environment, in an attempt to push/reduce

    customers arousal level depending on which kind of shopping motivation is common

    between its target customers. This in order to positively affect the pleasantness of shopping

    environment and, indirectly, shopping behavior variables(e.g. unplanned spending, duration

    of store visit..) . Indeed, Velitchka theoretical framework states that consumer shopping

    behavior inside the store is affected by the pleasantness of store environment, which ,in turn,

    is influenced from consumer arousal level. The consumer arousal level is affected by the

    environmental characteristics and mediated by consumer motivational orientation. So, the

    question here is:

    1) Considering Feltrinelli customer orientation, has the firm chosen the right mix ofenvironmental variables in order to push/reduce customers arousal level to positively

    affect in-store shopping behaviours?.

    Focusing now on the recent assortment initiative undertaken inside Feltrinelli main store, we

    will discuss if the new categories introductions find a raison dtre from a rational point of

    view. Doing this, we will use Simonson theory of assortment effects on buyer preferences.

    Simonson article discusses how assortment policy can affect consumer purchase decision. In

    doing so, it could explain why Feltrinelli chain has decided to introduce new product

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    categories, especially for some of them that could seem not very functional related to the

    book/music categories.

    So, the question here is:

    2) Considering Feltrinelli initial books/music/films assortment, is the new introduction ofdifferent product categories, such as luxury french tea or design clothes, justified by a

    strategic, synergic and theoretical point of view?.

    This are the two questions that we would try to address during the discussion of the examined

    case.

    Appendix

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    References

    Areni, C., & Kim, D. (1994). The influence of in store lighting on consumer examination of

    merchandise in a wine store. International journal of research in marketing 11 , 117-125.

    Dawson, S. (1990). Shopping motives,emotional stats and retail outcomes.Journal of retailing,66 ,

    408-427.

    Mcgoldrick, P. (2003). Retail marketing. New York: McGraw-Hill.

    Sykes, C. (1994). How to conduct a successful in-store promotional event. Retrieved novembre 2010,

    from Allbusienss: http://www.allbusiness.com/marketing-advertising/channel-marketing/681500-

    1.html

    Velitchka, D., & Barton, A. (2006). When should a Retailer Create an exciting store environment.

    Journal of marketing , 107-118.