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Friday, July 30, 2010

Customer Pyramid

Retailers group their customers based on their loyalty and to how sensitive are they towards the retailers pricing. The most loyal and least price sensitive belongs to platinum group next in line will be the gold customers followed by iron and lead.Through this classification retailers can give different type of services.As retailers we can provide the best service to the gold and platinum customers

We can cater to them in appreciation of their loyalty towards the brand by giving them loyalty cards,this card is given to customers based on how often they buy the product. and not just by buying one shot and get it like how some card membership customers can get it easily by just spending a certain amount.We can also allow them to spend on sales item a day before ssales period start. We can email customers about new launch products way before the stocks come. So that they can make reservation..For the iron and lead customer, retailers should not pay too much attention to them but they should put in effort to convert them into gold or platinum class customers.

They can offer membership to these two classes so that they visit the store frequently ,as they are able to get membership discounts

Thursday, July 29, 2010

Communication methods

Paid personal communication

For paid personal communication there are several types, retail salespeople, E-mail, Direct Mail and lastly M-commerce.

Retail Salespeople
NewUrbanMale(NUM) uses some of the above methods such as retail salespeople and E-mail. As we all know all NUM shops have their own retail salespeople to assist customers when shopping. This way is also known as personal selling process whereby the NUM staffs would satisfy customer's needs through face to face exchange of information. This can be done when for example, a customer comes into a NUM shop and ask if the shirt he desired has his size. The NUM staff would actually check for the customer on the spot and interact with the customer, unlike shopping in a virtual store where a customer must statisfy his or her own need by searching him or herself.

E-mail
Another paid personal communication method NUM uses would be via E-mail. NUM is actually technological savvy and they uses E-mailing to inform their customers of their updates. NUM actually has a fan page in the social website Facebook. Customers can receive their updates via E-mail if he likes the fab page or join their social network. In a way, NUM will be able to filter more loyal customers from less loyal customers because a loyal customer would most probably join their network and when NUM sends him the update on their merchandise, the loyal customer would be the first few to know and would be more likely to buy as compared to less a loyal customer.


Unpaid Personal Communication

Word of mouth
New Urban Male uses word-of-mouth to communicate to their consumers. People who shopped at New Urban Male will share with their friends and family about their shopping experience there. It can be favorable or detrimental and the result is affected by several factors.
The level of customer service can leave a lasting and strong impression on a customer. Good customer services provided by a service provider often ends with favorable word-of-mouth. Consumers will go on to tell of their shopping experience which will give a good impression of the brand New Urban Male to other potential customers and also increase the loyalty of a customer both which encourages more profit for the company.
Bad customer services can often end up with a detrimental word-of-mouth. Customers go around telling consumers of their bad experiences at New Urban Male and thus leaving other potential customer not willing to patronize from New Urban Male.
An example of good word of mouth can be when a consumer who has bought a NUM product and after using the product for a long time, the product still in a good quality. The consumer will tell his friends/family that the product is good and vice-versa.

Social Shopping
Social shopping is a communication strategy in which consumers use internet to engage in the shopping process by exchanging preferences, thoughts and opinions. NUM has their own e-commerce, a website which features their products and where customers can do their online shopping. Their customers can show their friends the product which they are interested in buying through the website and ask for their opinion and views on the design and color of the product. There are forums which features models who are wearing NUM’s products a brief description on the items and the price of it. People can comment on the page sharing their views about the article.
There are benefits for retailers who engage in this strategy. It helps generate revenue not only from advertising and click through but also by sharing information about their users with retailers. An example would be when NUM’s customer registers online for an account in order to purchase their product. Information such as age and location of stay can be recorded through the website which NUM can use to better serve their customers and.

Tuesday, July 20, 2010

Customer Service

There are a lot of services offered by retailers to customers,it is seen as a way to differentiate themselves from other retailers.Depending on the the type of retailer,services offered may be different.Common services offered by retailers such as NUM includes acceptance of credit card,deep selection,,display of merchandise,dressing rooms and personal assistance in selecting merchandise.

CUSTOMER SERVICE STRATEGIES

For New Urban Male,they adopted the Standardized Approach for their customer service Strategies,the downside of this strategy is that it doesnt exceed customer's expectations,however it does meet their basic expectations. The good side to this strategy is that it has a lower cost compare to the personalized approach and at the same time it is more consistent.The whole idea of this strategy is to come up with a basic set of rules and procedures which employees need to follow and carry out.

WHAT DOES GOOD CUSTOMER SERVICE MEAN?

Often employees are not too sure about this term,managers need to set it clear to employees and demonstrate what do they mean by good customer service. From the moment a customer enters the store to the process of browsing for clothes in the store to trying out the apparels.examples would be,a service staff helping the customer to remove the apparel from the hangings and usher the customer towards the fitting room and hang for them the clothes that the customer wants to try in the fitting room..

When retailers set a standard for their employees the goals towards good customer service is more obvious and employees have a clear and better understanding and what is expected from them.
clear standards are,smile to customers,greet customers,make eye contact when talking to customer,thank them for visiting the store and also after making purchase.

Services goals should be related to customer based criteria,means the goals should benefit the customers ,in other words,its to make their stay in the outlet pleasant.

To gauge customer service level of retailers,it should be measured by customers survey,managers can maybe encourage employees to kindly ask customer for feedbacks regarding the service they received.This is good to keep track of their progress. A good method to measure customer service is through mystery shopper program. Because you dont know when will the mystery shopper will come,u have to be consistent with your service level in order to achieve high marks. Plus theres rewards usually offered by the company for great service level which will encourage employees to be on their toes for every single shift.

Tuesday, July 13, 2010

Store Layout, Design and Visual Merchandising



New Urban Male uses Free-Form (Boutique) Layout which has fixtures and aisles arranged asymmetrically which provides an intimate relaxing environment that facilitates shopping and browsing. This kind of layout is normally used in a specialty store in which New Urban Male is adopting currently.

For visual merchandising, they used fixtures such as straight racks to hold their shirt merchandises. The items on the straight racks are items that are on discount as these items are off season items. They put the bags that they are selling on shelves on the top for display purposes and also attract the customer’s attention. The new items are normally placed on Gondolas near the entrance of the shop. Any new shirt items are normally folded with the design in full view and placed on top of these gondolas along with other new apparels. Lastly, they use a 9 ball waterfall hanger to hang their undergarments/swimwear (men). The pictures below show their store layout and fixtures used.




Usage of Signage and Graphics
There are various factors od usage of signage and graphics such as
1. location
2. category signage
3. promotional signage
4. point of sales
5. lifestyle images

For location signage, normally if there is a new branch of NewUrbanMale opening, the company would actually put a signage at populated human traffic areas like for example the MRT station or bus interchanges. By doing so, it will actually catch the attention of incoming traffic that there is actually a new branch opening in an area nearby and hopefully people would patronize their new branch.

For promotional signage, NewUrbanMale(NUM) actually places their promotional signage at their shop window to attract the attention of incoming human traffic. Not only that, in order to make sure that people know about their ongoing promotions, they actually deploy some of their staffs to stand around near by MRT stations, linkways etc to give out flyers to incoming human traffic.

As for point of sales, when a consumer is paying up for him or her items, NUM has this small signage that will show all the ongoing promotions. For example, buy any 2 items for the price of 1, 20% discount for credit card holders etc. This signage is to 'alert' consumers of ongoing promotions just in case they did not pay attention to other signages and upon payment, NUM staff would actually remind the consumers again about the promotion going on. And if there is any credit card discount, the NUM staff would actually point to the small signage and ask the consumer if he or she has the valid credit card.

Suggestions for effectively using signage
1. coordinate signage to store image
2. Limit the text on signs
3. Use them as props

These are some ways whereby NUM uses their signage for. NUM coordinates signage to store image by designing their signage closest to their store theme. Not only that NUM also managed to make use of the signage as props. Normally NUM's promotional signage or new item arrival signage will be placed not only at the door step but also at the display windows together with the maniquins. This is a good idea because when people walk past the store looking at the maniquins, they would also pay attention to the signage as well. Also, NUM's signage are not lengthy and would go straight to the point. NUM uses this because shoppers normally would not stop and spend time reading the signage hence if it is too lengthy, shoppers would not be bothered to read. By keeping the signage short and direct, shoppers would actually know what is going without spending much time reading it.

Digital signage
The only digital signage NUM uses is the internet. Digital signage is superior in attracting attention and eliminates cost with printing, distribution and installing traditional signage. By putting up promotion deals on the internet, it will be able to attract more attention from consumers rather than having signboards in or outside the retail shop. This is because when a consumer surfs the retailer's website, means that he or she is looking for something from the retailer or maybe interested in the retailer's products.

Hence, the consumer is willingly to spend more time reading the signages on the internet be it if it is lengthy or not. Comparing to a shopper who just window shops, he or she may or may not notice the signage as he or she is just window shopping and will not pay as much attention as when using the internet, as a result, digital signage would be more attention grabbing.

Lastly, having digital signage is obviously cheaper than printing signage notices. It is also a way to cut cost for most retailers. Man power could be saved as there will be no need of NUM staffs going around populated human traffic areas to give out flyers.

Visual merchandising is the activity of promoting the sale of goods, especially by their presentation in retail outlets. This today forms a critical element in retailing. Besides the facade and windows, which are clearly done up with an objective to attract passer-bys and induce walk-ins, there is also in-store decor that is designed to enhance the customer’s comfort and convenience while shopping and overall, offer a superior shopping experience.

They are many ways to display the merchandise to best present the products that attract attention and encourage sales. This brings out the importance of store fixtures in visual merchandising and it includes tables, wall shelves, hanging fixtures or as mentioned in the lectures, straight rack and rounder to name a few.

At NUM, VM is being taken seriously with brightly lit lights in every outlet of their stores and their products being arranged neatly and orderly to enhance easy browsing for their customers. In addition to their VM, the multi-coloured merchandise that they offer helps to brightens up the whole store design, attracting shoppers to visit.


The fixtures that they use would focus mainly on straight racks, tables and using slated walls to hook on their products.

Below would show some pictures of their fixtures used.





using slated walls to display their wide range of flip flops and tables to display their other merchandise






an example of using straight rack to display their tees









New Urban Male employs a few merchandise presentation techniques to highlight their product & attract customers to their outlets to make purchase.


Firstly, similar to other specialty stores, New Urban Male would use Idea-orientation Presentation where they use manequins to wear their products which they want to highlight and display it at the front of the store to attract customers to their stores. Few days ago, our group have made a trip towards New Urban Male store located at City Link. The manequins hassuccessfully attracted our attention with the taglines in the taglines tees which was "Hot Hunks Inside".These manequins have actually managed to arouse the curiosity of customers and make a visit to the stores.


In addition, customers would also be to draw inspiration from the manequins wearing the tees and create their unique styles to wear New Urban Male Tees.

New Urban also do employ Tonnage Merchandising where they would display all their concept tees on a big table. This is to allow customers to have a quick glance on their deep assortment of concept tees. By using TonnageMerchandising, New Urban Male would be able to save up space on their retail stores and display more other products which would lead to increase in sales.


By using the 2 above mentioned merchandise presentation techniques, New urban male would be able to maintain and create a positive image in the eyes of the customers

CONCLUSION


NUM have done a great job using signages to make its store look colourful and vibrant. At the same time it uses it to inform customers regarding promotions.


It doesnt need a lot of signage to inform customer where their apparels are located at,reason being their store size is not too big,plus the way they display their apparels and footwear is obvious.



Displaying their range of footwear on one side of the store prevents confusion and at the same time it makes it easier for customers to compare between designs.Promotion items are usually on wagons in the middle of the store as it is the area that customers is likely to walk towards in order for them to access the apparels on the wall.

RECOMMENDATIONS


NUM need to make changes to the way they display their footwear as some of the footwear is beyond customers reach .Customers tend to feel more comfortable when they are able to touch the products before making their purchase.

Tuesday, July 6, 2010

Price Management

Price Management of NUM

Firstly, I would start off by stating the importance of pricing. This decision is important as customers have alternatives to choose from and are better informed these days, and they are in a position of seeking good value so retailers can increase value and stimulate sales by increasing benefits or reducing price.

Now, the question that left us pondering about would be how do new urban male set their retail prices then?



There are a few considerations on setting of retail prices. Theoretically, retailers maximize their profits by setting prices based on price sensitivity of customers and the cost of merchandise, also considering the prices being charged by competitors.



Price Sensitivity and Cost



Price sensitivity means “the degree to which a change in the price of something leads to a change in the amount sold or that could possibly be sold.”



Through the lecture notes, I have found out that it is an inverse relationship between price sensitivity and demand - price of the product increases, the sales of the product would decrease. It is because fewer customers feel the product is in good value. This relationship is true with most retailers.



However for NUM, the customers are believe to be less price sensitive. From an article I found online, Newurbanmale.com – embracing retail service culture (http://www.ace.org.sg/Site/Page.aspx?id=50976639-0AD5-4F3B-90B9-6E5EA027F44D), the founder of NUM, Shenzi Chua states that with the continuum of value-added and consistent good quality services, customers would then feel more worthwhile in purchasing their products. This is further supported by reviews from the net saying that NUM products are generally affordable though slightly expensive and well-liked for their quality.


Competition

Most retailers routinely collect price data about their competitors to adjust their prices to remain competitive.After much analysis and research, NUM competitors would consist of Quiksilver,Roxy and Bilabong.In terms of pricing, Quiksilver pricing would be among the top of the competitors which includes NUM


So, in this way, how do we reduce price competition between NUM and its competitors?

-Developing lines of private label merchandise

NUM Tees
NUM S_X Anniversary
NUM College Tees
NUM Party tanks

When NUM was launched in Singapore, NUM have develop their own lines of private label merchandise. One of the most popular private label merchandise was their Party Tanks which created quite an impact in the fashion industry. Now, NUM has also been introducing the concept tees and taglines which consist of cheeky tag lines. This launch has proven to be a success one as there more people wearing NUM products on the streets.

-Have vendors make unique products for the retailer

The NewUrbanMale concept is to be who you truly are, and to know what you truly want in life, this would undoubtedly bring confidence to a person. Therefore, to encourage their customers to be more expressive, the cheeky slogans features on the tank top – “because life is not a straight line”, “Boys are a good source of protein” are made for such a purpose too. Focusing on the party tanks, they carry a unique range of tanks such as the Singapore Estates where Singapore streets are printed on the tank (Jurong, Ang Mo Kio etc), Mister Series (Mister Impossible, Mister Messy etc) to name a few.


To sum up the considerations of setting the retail prices for NUM, we have found out that although it is true that price sensitivity still occurred within NUM but it does not cause a great impact on their pricing strategy. However, they do still take into notice the inverse relationship by not setting their price overly high, and take into consideration important factors like customer service and quality standard. (competitors – empty)



In terms of pricing at NUM, most of their merchandise is priced at a range of $26.00 for men’s underwear to $129.00 for a Boston Bag while their best sellers- party tanks are priced around $49.90 to $89.90. But, NUM’s sales are growing well despite their high pricing.

There are a few ways for retailers using pricing techniques for increasing sales. NUM has been using the approach of ODD Pricing where their price of products ends in 9. Such examples are their party tanks where they priced it at $69.90 to give a signal of low prices.

Moving on, we will touch on NUM’s variable pricing strategies and price discrimination.



For NUM, they offer the same price schedule to all customers – Self Selected Variable Pricing (second degree of discrimination).



Some examples would be:

Quantity Discounts refers to any reduction in price based on the purchase of a large quantity.This includes promotions such as BUY 2 GET 1 FREE and having 50% off for any two items purchased.





- Special Promotions



As for the pricing strategies, NUM engages in Hi-Lo Pricing instead of ELDP. High Low Pricing means discounting the initial prices through frequent sales promotions.


Hi- Lo:
- Higher profits through price discrimination
- More excitement
- Build short term sales and generate traffic

Like I mentioned above on the variable pricing, NUM uses self-selected variable pricing which is the second degree of discrimination. They engage in fairness – having promotions by offering the same prices to all customers. Therefore, they would be able to earn higher profits by using the variable pricing strategy, which is the second degree of discrimination. Also, by having occasional sales and promotions, they would be able to create more excitement to customers as since their pricing are high, the sales will help to boost up the profits even more and perhaps generate new traffic to their stores.

Monday, June 21, 2010

Human Resource Management (HRM)

Human Resource Management refers to the function within an organization that specialize on issues relating to recruitment,compensation and performance management.

New Urban Male also do have an efficient Human Resource Department where they focus on different issues such as the following.









Recruitment of different respective position in the company












For every respective position, they would list out the strengths they were looking for and allow interested candidates have a quick glance which position would be more suitable for them.















Knowledge Sharing
Knowledge sharing is when they store information through a database which can be access
easily.This is useful when the company needs to update the other outlets regarding changes to promotions or anything that is related to the company .



Definition of New Urban Male







Other than mentioning about the definition of new urban male, they have also created casual terms such as SNAG which refers to Sensitive New Age Guy.


Styles to wear our Signature Party Tanks




There would be a total of 4 ways for the females to wear their signature party tanks.

For the guys, there would be a total of 6 ways to wear the party tanks.

However,New Urban Male do encourage customers to be creative and create a different way of wearing.



These would also be able to educate the customers who have no idea of how to wear the style of the party tanks and teach them to find their most comfortable way of wearing it.

Employee Benefits


In situation where the employees would like to make purchases for their own usage, they would be able to have special discount up to 50% on their own brands which includes

Concept Tees



They have health benefits for the staffs as well,depending on the company they will ensure that they will cover for your expenses when you visit the doctor.Some companies even provide dental coverage.


As part of the comapany staffs have opportunities to upgrade themselves when their companies sent them for classes such as customer service classes,visual merchandising classes .


FAIR EVALUATION SYSTEM FOR EMPLOYEES


Every year employees will be evaluated by their managers,this allows the manager to brief with the staff regarding his/her strenght in the industry and share with his/her weakness ,not only does this benefit the employee as they know how they can improve themselves but at the same time they got a chance to get a pay raise.










Thursday, June 17, 2010

Merchandise Management

NewUrbanMale has various categories of products such T-shirts, Party Tanks, Skin products, swim wear, footwear and lastly accessories. NewUrbanMale main selling products would be T-shirts, Party Tanks and footwear hence these products are placed where it is much more noticeable by their customers. Even for each category, they have different assortments and the different assortments are being placed at different location in the shop. For example the T-shirt categories there are tagline and concept. Both categories are placed under the T-shirt column but each assortment will be placed in different sections for the ease of finding for the consumers.

For their footwear items, NewUrbanMale actually separate the different categories and brands. For example, the Havaianas will be separated from the Braziliano Praia because of branding issues. Even for each type of brand, different assortments and categories would be placed differently from one and other with the newest product will be placed in the middle of the footwear racks so that it will be at the eye level of the consumers and it would be more noticeable.

For their skin products, they have limited varieties and is not one of their main selling products but rather a subsidiary product to their theme of products ( sports and beachwear) therefore they are placed near the cashier counter so that the cashier could actually recommend to consumers when they pay for their products. This is known as up selling.

For their accessories, they are normally being displayed at the shop window together with the mannequins to promote to consumers that they have accessories that actually goes well with their main selling products at the same time it also attracts customers to the shop.

In order to emphasize that they have new products in the shop, they are normally placed at the front of the shop near the entrance to grab the customer's attention. Half-bodied mannequins are also placed on the table with the new products so as to emphasize on the new designs they have in the shop.

Generally, the shop adopted a good merchandising management strategy whereby everything is well organized and well placed and it makes searching for clothes and other merchandise a lot more easier for both the staff and the consumers. This strategy also creates a good shopping environment whereby the items are placed neatly and give a ease of walking around the store.



Below will be the merchandising management chart that NewUrbanMale uses.