Page 161 - DECO405_MANAGERIAL_ECONOMICS

Managerial Economics

Notes for life. The battle between the two big bicycle brands is going to test the "loyalty"
of the adult enthusiasts in the market - but their loyalty is a question of personal
attachment, relationships and the deal they got most recently, so there is marketing
room for the independent to establish client loyalty programs and establish ongoing
communications so the relationship is maintained and strengthened. Items 7, 8 and
9 discussed below become very important here.
2. Market to and really welcome casual cyclists, women, minorities, baby boomers
seniors - everyone that is now underserved by all-the-other bike shops and concept
stores. This is a key strategy for growth. It involves a product selection that will
give all the non-enthusiast adults a truly enjoyable bicycle riding experience while
not forgetting about the kids. Proactive market outreach in the form of demographics
within zip codes and direct-response is essential, along with a formal referral-
marketing program to drive word-of-mouth.
3. Focus totally on the consumer. Our channel of trade is now very product focused,
and we think everyone that walks in the door is also product focused. This is a false
premise. Shoppers, all shoppers are looking for an enjoyable experience, and that
experience includes focusing on their wants and needs, while making them
comfortable in the store. Adult enthusiast cyclists want and seek out product
orientation, but also appreciate a more enjoyable experience. Casual cyclists and
non-cyclists, where the growth potential is, are seeking the shopping experience
and want to be comfortable with and develop a relationship with a consultant who's
expert advice about bicycle products will best meet their wants and needs.
4. Educate your whole organization to focus totally on shoppers and customers. Because
of the current product focus of our channel of trade, we don't educate our employees
about the vital importance of focusing totally on the shopper, and not making any
snap judgments about who a cyclist or customer is, or isn't. Hiring and educating
customer service naturals is way more important than in-depth product knowledge.
Educating them to really listen to shoppers and customers wants and needs is vital
to building lasting, lifetime relationships.
5. Make it all about them and an extraordinary shopping experience. There is no retail
selling today - everything a retailer does, everything retail employees do is
marketing. The whole store, and the whole attitude has to make it all about them
from the parking lot to the windows to the front door to the greeting - through
making the bicycle buying process easy and fun, and the whole visit to the store
extraordinary. Making it all about them and providing an extraordinary shopping
experience is the path to increased transaction values and increased close rates.
6. Make your store the brand. Work with, stock and sell products that will provide the
features and value your customers want and need, and the margins and inventory
turns you need to grow your business. Present a uniform brand image in everything
you do and that your staff does and says - one outward brand face. And develop and
promote formal word-of-mouth customer referral programs to leverage your store
brand in the market.

7. Create individual client solutions. You and your staff - your whole store, your
brand and the shopping experience you provide are for one purpose. To create
individual solutions for your customers wants and needs. In doing so you will
create clients for life.
8. Become an efficient database manager. Educate your staff to the importance to your
business of utilizing all the features built into to your computerized point of sale
system and any other retail shopping systems you incorporate into your retail
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