Posted: April 19th, 2015

Applied Merchandising

Section 1

Customer Observation

 

Customer Anthropology framework is the study of customers and non-customers behaviour in their ‘natural habitat’. This research aims to observe the customer’s unmet needs when shopping. From the observation, choose one underlying customer needs that Stitched Up should try to solve and innovate from in order to increase sales. To conduct this observation, following and observing customer’s behaviour in different retail stores is a key component. The observations starts from how they browse, what enrages them in store, what type of customer service was given and what is lacking. This research was conducted at a few different locations throughout the Melbourne CBD. The research was conducted on the 25^th of March 2015, at QV from 11:30 AM until 1:00 PM, then at Melbourne Central 1:15 PM – 3:00 PM, and lastly at Bourke Street 3:30 PM – 6:00 PM.

 

These are the 20 interesting observations gathered on the unmet customer needs and things that retail stores are successful at. Here are the 20 observations: (Refer to table 1.1, Appendix I)

1.     Customer Inconvenience
2.     ‘Scrambled Merchandising’
3.     Wrong Pricing tags or no pricing tags on merchandise
4.     Inefficiency in register and fitting rooms
5.     Low inventory
6.     No Online store
7.     Privacy Issues
8.     Security Issues
9.     Lack of Staff
10.  Defect Products
11.  Lack of Product Variety
12.  Untrained Employees
13.  Membership Cards
14.  Window Shopping
15.  Good Customer Service
16.  Lack of inviting atmosphere
17.  Taking Pictures
18.  Emotional Economy
19.  Merchandise Styling on Mannequins
20.  Limited Payment Options

Based on the observations being made, there are three areas where the customer’s needs aren’t being met; lack of customer service, inefficiency in store (queues), and no online store. If Stitch Up were to decrease their customer’s inconvenience in store, it would result into an increase in sales/profit. Customer tends to feel inconvenient in store when the they have to wait for a long time before the staff could help them. Sometimes rude staff would also lead them to walk out of the store. When the store is messy with too much merchandise, or messy displays, it would create confusion in the customer’s mind that will lead them to just walk out of the store and find a substitute store. Customer’s feeling in store is very important especially with the modernisation of customers and the emotional economy. Getting into the customer’s mind would help Stitch Up gain profit. Not only that, since the customer’s are better informed in today’s generation, it leads them to have higher expectations when shopping. Stitch Up should fix the inconvenience in store and it will allow them to have an increase in sale.

 

 

Section 2

Idea Generation

 

1. Online Store
2. “Try it on” service on website
3. Free delivery after purchasing a certain amount
4. Store pickup reduce lining up
5. show items if available or not
6. user friendly website
7. social media connected
8. easy communication
9. promotion codes and discounts
10. Allowing customers to subscribe via email, makes it easier to advertise and give news
11. Discount certain products when they subscribe via email
12. Extra discount when they purchase online to get them get used to online shopping at Stitch Up
13. free returning when items do not fit
14. no line up in fitting room, instead pick a number and wait to be called for your turn
15. buzzer to call staff members
16. scan items with scanner so that the time spend in the register is quicker
17. Limiting items for customers who are using fitting room to decrease waiting time
18. Customers can give feedback via online or instore to better the store
19. Employees must check for defects (if any) for any products that are going to be sold to the consumer
20. Training employees (neither they will be too friendly nor rude) to satisfy the customer
21. Mobile App that customers can use to check on the product they desire
22. Customers can save up reward points from previous purchases to gain gift (or extra discount)
23. Each customer can borrow an iPad in store to take a picture of themselves and try the product using the iPad instead of going to the fitting room.
24. Customers can scan the QR code on the label and save the items they want on their wish list or send it to friends/families for opinions.
25. Customers can use trolley or basket when they are buying numerous items
26. A friendly environment store create a positive impact on the customer. Always give customer a smile
27. Given an iPad to book in available fitting rooms and to ring a bell to call the staff
28. Games or Children play area so women can shop peacefully
29. Toilets in store, sometimes when we shop there aren’t any toilet. so we need to go out and find a toilet before returning.
30. Staff member constantly going around and fixing and placing the merchandises

 

Stitch Up would benefit greatly if they are able to solve the customer’s inconvenience in store. It is deemed that customer service plays a big role in the retail industry with 42% of business-to-consumer customers purchasing more after a good customer service (http://www.entrepreneur.com/article/236668). Shown above are the 30 ideas generated to help Stitch Up solve their unmet customer need in store. The best idea is to provide iPads in store, and giving each merchandise a QR code (Idea #24), where customers can scan and directly show the item in their iPads. Other features from the QR code idea was generated and improved. Customer’s may also download this app on their smartphone, whichever is more convenient for them. This will allow them have a look at the product’s specifications and also the price. They can straight away add to cart so that when they are at the register, the staff member can proceed straight away to the payment. In the Stitch Up store, there will be a body scanner, customer’s can take a picture of themselves for a specific measurement. This allows them to on clothing on their phones or laptops at home without worrying if the sizing will fit. This idea would create customer convenience at Stitch Up as they have a personalized staff on the palm of their hands. Furthermore, it would be more efficient and less time consuming.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Section 3: develop a business case