::::LINE project # 2::::: by Elizabeth Gwyn

Walgreens--Blog #5

Walgreens

For this week's blog I have chosen to do it on Walgreens. The convenience/pharmacy store up the corner of Spring Garden. From what we have discussed in class I think that Walgreens would most fit under the category of a main street retailer.

Spring Garden is a very popular street that people use everyday to go to and from places. Walgreens is located right on the corner which intersects 4-ways. Most students would walk there to get groceries or medicine, etc. It is a very convenient location, and their prices are also affordable.

Disadvantages:

-Occupancy costs is lower because they do not draw as much people as the primary CBD. There are fewer people working there, and fewer stores generally mean a smaller overall selection.

-Main Streets do not really offer much entertainment or recreational activities in the more successful primary CBDs.

-There might be imposes on restrictions on the store operations.

-Parking is not too spacious. There are a good amount, but during the busy days more might be in need.

Advantages:

-The parking lot is in a great place with easy access to the store

-pedrestrian traffic is not too conjested as it could be. There are ramps for people on wheel chairs, so that makes for an easy access as well.

-the overall traffic pattern is good too. Whichever way you turn on Spring Garden you can pull into the store very easily with no trouble. There are two different ways for cars to enter, one on the side and one on th opposite side of the store.

-There are also sidewalks, so that is great for students who walk there to shop, etc.

I think this Walgreens was build in a great location. I can't really think of anything really to fix it....but I'm sure there are always something to improve on. It could also be on the corner near Jack's Corner because many students and non-students go there to eat. Maybe they might stop by to get something before they go home. Other than that I think it is at a great location!

Financial Studies

Circuit City
http://dealbook.blogs.nytimes.com/2008/11/10/circuit-city-files-for-bankruptcy/
http://danieldurazo.com/2008/11/16/top-ten-reasons-circuit-city-will-go-out-of-business/

There are different reasons for why Circuit City is going out of business. They have a strong competition such as Best Buy, who is still in business. “The company has long been an also-ran in the consumer electronics sector, consistently trailing its larger rival, Best Buy. Circuit City has faced several challenges this year, including a proxy contest mounted by an activist investor and a shakeup in its management this summer.”
From my personal experience, I would rather shop at Best Buy. I often find what I need at Best Buy, and their prices are about the same, but the store’s physical layout is just more appealing. Circuit City I have been too were dirty, dark, and the customer’s service was not great. In addition, Circuit City do not always have what you are looking for. I haven’t had issues with that from shopping at Best Buy.
According to the website, below are ten reasons for why they will go out of business:
10. If it ain’t broke, fix it anyway. During the ’90s, Circuit City was doing great. The problem was, competition was coming and it was coming hard and nobody took Best Buy seriously. If you don’t crush the competition, don’t be surprised when they crush you.
9. In a competitive environment, don’t take your eye off the ball. DIVX and CarMax were major distractions and Circuit City suffered greatly as a result.
8. In 2003, Circuit City fired thousands of employees and ended commissions for sales people in favor of an hourly structure. In 2007, Circuit City fired 3,400 of those hourly workers for cheaper replacements. When you fire well-paid veteran employees to make room for less-experienced, lower paid workers, your customers will notice. And they won’t like it.
7. Location, location, location! B locations equal B customers, B sales, B results.
6. Don’t notice too late that people want to buy movies, games and music when buying the hardware to play them. Those low margin items helped create brand loyalty for Best Buy.
5. Old, outdated stores need to be remodeled or closed and new, bigger ones need to be opened in competitive markets.
4. Selection and availability of hot products is crucial. If you don’t have what I need, Best Buy, Target or Walmart will. And next time, I will probably go there first.
3. Give customers a “real” rewards program. Not just a come-on for a branded credit card.
2. The state of “customer service” in retail America is abysmal. You can tell very quickly when you walk into a store that the employees couldn’t care less. Circuit City’s reputation for customer service was far less than stellar.
1. Filing for bankruptcy 16 days before Black Friday is an extraordinary event that no consumer can ignore. With consumer confidence non-existent and retailers fighting for every sale, you may as well just shut the chain down now.

Sharper Image
http://www.consumeraffairs.com/news04/2008/06/sharper_image.html

After reading about this company, they do not have such good consumer report. “The company had mounted an expensive libel action against Consumer Reports, over the magazine's reporting on Sharper Image's signature product, the Ionic Breeze air cleaner.”
The company went under in February. From what I have read, the reasons for why they are going under is pretty clear. Not only it’s because of the faltering economy, but also they have been selling bad merchandise. For instance, the article suggests that, “The trouble began in 2003 when Consumer Reports published a report claiming the expensive Ionic Breeze air cleaners don't clean air.” The company has experienced steadily falling sales since 2004, and has reported net losses in the last three years.

Claire’s
http://www.ciao.co.uk/Claire_s_Accessories_Shop__Review_5055117

I used to shop at this store when I was younger, possibly in the middle school. However, as I have gotten older I do not go in there much. I now look for accessories that will last longer. I think this is definitely one of the reasons why Claire’s business is slow. The economy is also pulling them down with it.
Other reasons for why they do not have staying power is because the goods were very poorly displayed, and even the display units were in need of repair. There were also pieces of cotton wool left all over the top of the units, and no one had attempted to clear them a way, there wasn't even a small bin available for their disposal. Having a clean store really helps. It’s safe to say that the employees don’t pay much attention to the aesthetic of the store, or the managers are not present to look over everything.

Ann Taylor
http://1stnews.org/249/ann-taylor-store-closings/

I think Ann Taylor is going out of business because just like many other retailers, they are not receiving much customers on a daily basis. Ann Taylor has announced store closings for 117 stores nationwide by January 2009. Another thing is they might be outsourcing manufacturing and labor, as well as importing materials and other products from foreign countries. Importing materials from foreign countries are very expensive, so without money coming into pay for it, they have no choice except to shut down operations.
Below are the stores that are closed or is on their way to declaring bankruptcy.

Ann Taylor -

Bryant, Fashion Bug,and Catherine’s to close 150 stores nationwide

Eddie Bauer to close stores 27 stores and more after JanuaryCache will close all stores, Talbots closing down all storesJ. Jill closing all stores, GAP closing 85 stores, Footlocker closing 140 stores more to close after January,Wickes Furniture closing down, Levitz closing down remaining stores, Bombay closing remaining stores, Zales closing down 82 stores and 105 after January. Whitehall closing all stores, Piercing , Pagoda closing all stores, Disney c, losing 98 stores and will close more after January, Home Depot closing 15 stores 1 in NJ (New Brunswick)Macys to close 9 stores after January, Linens and Things closing all stores, Movie Galley Closing all stores, Pacific Sunware closing stores, Pep Boys Closing 33 storesSprint / Nextel closing 133 storesJC Penney closing a number of stores after January, Ethan Allen closing down 12 stores, Wilson Leather closing down all stores, Sharper Image closing down all stores, K B Toys closing 356 stores, Loews to close down some stores Dillards to close some stores.

Retailers and Their Target Audiences

For the survey that I took, my result were that I was categorized as an experimenter and a striver. I think that many people in my age group might fall into this category, but personally I do not feel like the striver fits me. The part about the striver is that money rules my life. I do not feel like I never have too much money. I use and work with what I have. I want a career over a transitional job. I am also not a very active consumer because I do not shop that much. Other than that I think the descriptions are pretty accurate. This profiling does have a good correlation with the target profile that we did in class. We listed the qualities our person might have in conjunction with what the retailer was.

Below is my result:

Experiencers:

Experiencers are motivated by self-expression. As young, enthusiastic, and impulsive consumers, Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities.Experiencers are avid consumers and spend a comparatively high proportion of their income on fashion, entertainment, and socializing. Their purchases reflect the emphasis they place on looking good and having "cool" stuff.

Strivers

Strivers are trendy and fun loving. Because they are motivated by achievement, Strivers are concerned about the opinions and approval of others. Money defines success for Strivers, who don't have enough of it to meet their desires. They favor stylish products that emulate the purchases of people with greater material wealth. Many see themselves as having a job rather than a career, and a lack of skills and focus often prevents them from moving ahead.Strivers are active consumers because shopping is both a social activity and an opportunity to demonstrate to peers their ability to buy. As consumers, they are as impulsive as their financial circumstance will allow.

Retailers and their target audience:

1. Bee Beep Toys

From the store name itself, one can surely say that the target audience here would be young kids and teens. There are toys for almost everyone. The store sells games, arts and crafts, books, dolls, stuffed animals, and most anything you can think of toy wise. Their age agroup are between 3-15. The price range is affordable, and they make great gifts. The kid will most likely be middle schoolers that will shop here, who loves to play games, and are into artsy things.

2.PayLess

The target audience for Payless might be someone who earns an average income in the range of $25-35,000/year. Most shoppers are middle schoolers to young adult male and female age 12-35. Hence the store's title, the shoes are relatively cheap, but the quality is not the best. I go there to shop myself because they have flip flops and cheap purses. They will last me a summer season, which is all I need. Since Payless is a major discount retailer, they sell shoes at a very low price, with a variety of styles as well, but do not count on the quality because the fabric use is not of high quality.

Sources:

http://finance.google.com/group/google.finance.659279/browse_thread/thread/edefc90f669395ef?pli=1

http://www.google.com/search?hl=en&rlz=1G1GGLQ_ENUS315&q=Payless+shoes+target+audience

Information About My Favorite Retailer

Marshalls

The last blog I mentioned that my favorite retailer was Marshalls.  The reasons was because I could always find something every time I shopped there. The other reason was because their prices are just right, not too too the top, and vice versa.   The following are a little bit of history of how Marshalls came about.  Marshalls, Inc., is a chain of American department stores owned by TJX Companies. They have over 750 conventional stores, as well as larger stores named Marshalls Mega Shoe, covering 42 states and Puerto Rico. Marshalls is the U.S.'s second largest off-price family apparel and home fashion retailer, behind its sister company, TJ Maxx.   The first store was in Boston, and it became an immediate success.  Within ten years or so, Marshalls became the leading retail store in the United States.  Marshalls is currently upgrading all of their stores, and doing complete renovations including adding a "single queue" to make checkout faster and more efficient.  The beginning of Marshalls date back to 1956, when Alfred Marshall from the East Coast got a team of talented people together and started this whole idea.  Not only is Marshall a great place to shop, but the corporation itself also has a good heart.  They are also involve in charities events and donations.  For example, Charity, all donations and fund-raising efforts from Marshalls are connected to helping children, families, and their communities with these programs:

• Domestic Violence Prevention
• United Way
• National Youth Anti-Drug Campaign
• Juvenile Diabetes Research Foundation
• Saint Jude's Childrens Hospital

This is a portrait of Mr.Marshall himself, the man who started this awesome store that I love!

This is another reason why I shop at Marshalls.  They have a great variety of jeans.  Most of mine comes from there, and they last a long time, and they fit great! :)

Below information are just a few more details about this retailer:

Statistics: 
Division of Melville Corporation 
Incorporated: 1923 
Employees: 21,000 
Sales: $2.8 billion 
SICs: 5651 Family Clothing Stores; 5661 Shoe Stores 

Sources:

http://www.ehow.com/about_4570796_does-marshalls-its-clothing.html

http://www.answers.com/topic/alfred-marshall

http://www.marshallsonline.com/

Customer Buying Behavior

This pyramid illustrates the different stages of information that might have influences on the buyer. As you can see that on the top is the buyer, and following it are the psychological, personal, socail, and cultural influences a buyer might encounter.

According to the textbook, the study of how and why people purchase goods and services is termed consumer buying behaviour . The term covers the decision-making processes from those that precede the purchase of goods or services to the final experience of using the product or service.

In my opinon, customer buying behavior depends on many different aspects. For instance, it depends on their income, style, transportation, needs, wants, and outside influences such as friends and/or family. Factors that influences customers are quite complex, so it is hard to pin-point exactly what their next moves will be. Being a consumer myself, I'm still very inconsistent with my buying behavior. I never know what exactly that I want, or where to go get it, what color, style, etc. It's usually take a day trip to find what I sort of had in mind.

This image is here to show the different things a customer might think about prior to purchasing an item. They could be thinking about the amount of usage if they were to buy a certain something, or the cost of the item. Like I said earlier, there are many things that will go through a person's head, or brainstorming sort of deal before they make a decision.

According to Darrel Zahorsky, there are five stages of consumer buying behavior:

1. Need Awareness: The beginning point of most purchasing is your potential buyer recognition of a need in their life. This need can be established by encountering a problem or prompted by a company's marketing.

2. Information Search: With the rise of the Internet, it has never been easier for buyers to research their purchase. Make sure your small business is in the game by providing educational material on your website.

3. Check Options: After an information search, the customer will evaluate all the available options. Options include wanted features, pricing, and company credibility.

4. Purchase Decision: This is the moment when the customer wants to buy. Deals are easily lost when you keep selling to the customer. There's an old adage in sales, when the customer says, "I'll take it," keep your mouth closed, and close the deal.

5. Post Buying Behavior: An overlooked piece of consumer buying behavior is what occurs after the purchase. The buyer will look for reinforcement from media, friends, and other sources confirming they made the right decision. Cognitive dissonance or "buyer's remorse" happens when the buyer begins to feel the purchase wasn't right for them.

SOURCES:

http://www.knowthis.com/tutorials/principles-of-marketing/consumer-buying-behavior/what-influences-purchasing.htm

http://www.clickz.com/842101

http://sbinformation.about.com/od/advertisingpr/a/behavior.htm

http://www.knowthis.com/tutorials/principles-of-marketing/business-buying-behavior/buying-center-decision-making.htm

My Favorite Retailer

These are my top five favorite retailers, although I seem to shop mostly at Marshall's, so I would consider it my favorite retailer.

1. Target
2. Marshalls
3. CVS
4. Old Navy
5. Forever 21

The main reason why I love Marshall's is because everytime I go in there I always find something. As for the other retailers, they don't always have what I'm looking for. Maybe I'm just having great luck with Marshall's. They have clothes, shoes, appliances, arts and crafts, food, etc. You can pretty much buy gifts for any occasion. Another reason why I favor Marshall's is because they have friendly employees. They always greet me at the door, or is very helpful in the dressing room. Moreover, the stores are clean, and their products are legitimate. Not but not least, their prices are awesome! It is not too expensive, except for the designer brand stuff. Their price is in the range similar with Old Navy and Forever 21, and Target, but the distance is longer to get to those stores. I guess the location is another reason why I love and shop at Marshall's more often.