Page 269 - DMGT550_RETAIL_MANAGEMENT

Retail Management

Notes Company actions: based on the results we just quoted, the company decided to
 Product offering returned to about 150-200 pieces for wholesaler and a further set of
about 100 pieces distributed only in company stores. These last set of garments were
essentially variations on existing garments, to simplify the design phase. The whole
set could then cover the “total-look” scenario for the shops and satisfy brand-keen
customers.
 Advertising: This moved into two directions. The first one tried to re-position the
brand in a “high class” section via the relations with testimonials and events. The
second activity (fashion and newspapers) was addressed only to the countries where
a distribution network existed and not everywhere; only one new foreign market
was to be pursued each year.
 Company shops: Only economical justified shops stayed open, with the new product
offering. As far as new openings were concerned the strategy was to create mixed
companies with local operators. These new middle-sized shops were addressed
mainly on the sales of the well known products (jackets) and there was a one year
starting period to reach balance break even, and no more.
 External wholesalers: The company recognized their importance and created a contact
and support groups with the idea of improve their brand loyalty.
 Agents: The company cleared that a new attitude was needed: they were to become
not only customer-order collector but also product and “prospect customers”
proposers. Quite a few agents did not accept and interrupted their business relation
with the company; the major criticism was that there was no longer an independent
agent role but that we were talking of company show rooms and methods. This was
one of the most difficult parts of the whole project.
 Company shops sale personnel: A long process of selection and education is still
taking place to reach the correct standard in human relations and technical knowledge.
 Shop customer service: It became the real guideline of the retail division. Every
aspect has been re-analyzed: from shop lay-out to packaging to personnel clothing
and attitude. Mock customers are evaluating each site randomly and their results
are discussed monthly at company level and twice-a-year with shop managers.
 Main IT system: The upgrade on this was very limited and it concerned almost only
the quality of basic data regarding customer needs like delivery dates or quality
indexes
 Retail IT system: This system has been changed very heavily. The operational part
has been upgraded to a new instrument and also, even more important, new CRM
systems have been introduced regarding both classical topics, like fidelity cards,
and new topics like known and unknown person recognition. The possibility to
follow the path inside the shop and on the front windows gave the opportunity to
improve internal paths and increment the time passers-by would stop in front of the
shop.
Generally speaking the reengineering is still going on but the results, up to now, are very
encouraging in terms of customer service and of sales point balance break even where all
the company shops are now correctly placed.
Question:
Critically analyze the case study.
Source: http://en.wikibooks.org/wiki/Information_systems_in_the_consumer_industry/A_case_
study_-_retail

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