Lack of understanding of the target audience
I visited Harrods for research for my books about a trade show and television screen. Harrods, for anyone who read this white paper that could not recognize this, is Mecca's retailer. Royalties, A-art celebrities and & # 39; each-each & # 39; from around the world fly into London just to shop at Harrods.
You can now imagine when I visited Harrods. In the mind everything was in the harrods of gold. I was disappointed, when I noticed a toy truck I had bought for my son from ASDA, was also sold in Harrods. It was exactly the same toy car, in the exact same packaging it is sold in ASDA.
Question in my mind, why is it exactly the same bus, probably manufactured at exactly the same factory in China, is sold in Harrods for twice the price it is sold for in ASDA?
The answer is absolutely simple – ASDA sells toy cars & # 39; however, Harrods sells cool toy cars. There is a difference. This is marketing 101: people buy emotionally but justify their decision logically.
Customers who shop with Harrods do not shop to buy Harrods & # 39; products; They shop with Harrods to buy elegance and class. "Harrods sells them in class, even if it is done in China.
How does Harrods pull it off? They achieve it with a blend of elegant design and attractive television signals. As you move from one department to another in Harrods, it's like moving from one store to another. Their ability to use the trade show to create a concept of differentiation is one key to Harrods' performance. Harrods understands their customers; They know what customers want them to design their store and publish their products to satisfy their customers' desire.
Marcus Buckingham, in his book "The First Thing You Need to Know", said when he was interviewing Sir Terry Leahy, who transformed Tesco into an international brand, asked him what the key to the successful transformation of Tesco was. Sir Terry Leahy answered i it was to ask and answer a simple question: Who do we serve?
When Tesco realized what they were supposed to serve, they changed the format and their products to serve their target audience. As a result of this change; Tesco increased the number of checkout agents that reduced the amount of time customers sent queue to the basketball and led to a sharp increase in Tesco footprint.
Wal-Mart serves the living person: Payment Method of Payment.
Body Shop serves ethical consumers.
Waitrose and Holland & Barrett serve consumers who want to live longer.
Ann Summers took products that were hidden in secret "adult" shops, fashioned them and bought them to High Street. They made taboo subjects in general.
If I were to take a goalie other clothes shopping at John Lewis, she would probably call my mother to inform her that I had a nerve injury. She would not be sentenced to death in John Lewis's outfit. She describes the John Lewis clothing department as the Bridget Jones collection where they store a collection of Bridget Jones costumes.
John Lewis continues to increase profits year after year because John Lewis understands his target audience. Someone like my importance could not be sentenced to death in John Lewis' outfit, but there are men in the UK who love Bridget Jones's monuments, these people are John Lewis's Goal Market, so John Lewis catered to them.
Well h Apple Retailers understand their audience and show their understanding of their audience with shopping patterns and TV shows.
Retailers who are not breastfeeding can not understand this basic market concept.
Most bookshops are struggling because they are still using the 1960 business model in the Amazon era. Borders failed because it was not developing its internet properly, and it invested a lot of discs when music was going digital. WH Smith only receives money from the airport and the train station. The rest of their stores are struggling. Waterstone is also on the lower trend. Sales are down and the trading footprint is falling steeply.
Why are bookshops endangered? Amazon! They will all shout. Of course, Amazon is the reason Amazon understands the market better than them. Since it looks Amazon is not going away anytime soon, are all the bookshops going to close?
Do you want to close WH Smith and Waterstone? Or will they rise to challenge and modernize their stores? Instead of complaining about Amazon, they need to redefine the target audience and redesign their stores to attract the target audience.
On Christmas Eve, I had not done my grocery store and was wasting the prospect of getting into a supermarket by knowing how packed they were. But when I drove past my locker, I noticed it was empty. I ran in and finished my purchases. When I bulged home again asked the question; Why is that even on this day when most supermarkets are usually jam packed in capacity, Lidl was empty?
The answer, in my opinion, is that Lidl does not have a target audience. One of their biggest sins was making a decision to force customers to pay for bags. Marks & Spencer can afford to do that because they appeal to a second-class customer.
In Tesco and ASDA, customers who are environmentally aware have the option to pay for a shopping bag. However, those who do not want to pay for bags with bags can also have the option of getting free ones.
This is because Tesco and ASDA understand their customers. However, Lidl chief executive spoke of having a similar policy in Europe and introducing it to the UK. If Brits do not like it, hard! Well, the British show their dissatisfaction with their feet.
I have tried to show with the above examples that success or failure in retail is the result of plans that all retailers agree. Those retailers who understand the target audience and cater to them will continue to move from success to greater success than those who roll the dice and hope that customers meet are those who want to fight or go for administration.
I hate being the one who breaks this kind of news to the retail industry. I think somebody needs to do it: the internet is not going away. This means that retailers are not only competing with one another, they also compete with the owners of a factory in China that is never called them. Buyers are now ordering directly from warehouses and distributors, for example, an individual can sign in to eBay and order a truck on a pallet.
Here's the gospel: Most people prefer shopping from physical stores. The question is how does a retailer ensure that a buyer is attracted to his stores? It can be done by accepting the term "Blue Ocean" policy.
The adaptation of the "Blue Ocean" policy is the only salvation for books, DVDs, music and furniture retailers. What is the "Blue Ocean" trend? "Blue Ocean" policy "is simultaneously a search for distinction and low cost" which leads to the creation of a new market that makes the competition irrelevant.
The idea of "Blue Ocean" is pursued by the most successful corporations while struggling companies pursue what is described as the "Red Ocean" policy. "Red Ocean" strategy is fighting to compete in the current market.
The policy of "Red Ocean" is approved by many books, DVD, music and furniture retailers. They are trying to compete with the internet and it's just not possible. A brick and mortar store can never head online with the internet and work. It can never be cheaper for the internet.
But what they need to do to track customer traffic to their stores must become new and creative. For example, a bookstore could arrange periodic libraries; Of course, the authors want to sell their books so it's a win-win situation for all the parties involved.
In order for the book to be successful in the marketplace for the bookstore, it is advisable for retailers to collaborate with publishers from twilight so that the book can be better introduced.
Introduction to book usage could involve various types of use, such as using the effective use of social media, local media and stunning labels in and out of the store.
Another idea might be book clubs for various book types that would trust a variety of customers in the store. These book clubs would also have to present in a similar way as described for the book use.
The trick is to be a novelty.
Richer Sounds is a classic affair by a dealer who has approved the "Blue Ocean" policy. They understand that people prefer to interact with other people. So while other electronic retailers focus on price, they focus on outstanding customer service and staff skills. Their "Blue Ocean" is a great customer service and better product knowledge.
For books, DVDs or musicians to compete in the Amazon country, they need a "Blue Ocean" policy that goes beyond price. They need a soul. They need an understanding of the perception of the target audience.
• What do you want?
• What are their hopes and fears?
• What is their perception?
I can order a book or DVD from Amazon and get it the next day. I can download music right from iTunes. There are millions of me in the world. What kind of "Blue Ocean" policy can WH Smith or HMV think about getting away from my laptop? It takes me half an hour to drive downtown, pay for parking, spend another half an hour in WH Smith or HMV and another half hour to drive home.
The question of $ 64 million is: What can WH or HMV do to make it worth while?
Let me give them a clue, I could order my groceries online, though I choose to go to the store. What's the difference? It is for book, DVD, electronic and furniture retailers to find out. They probably need to visit Starbucks, it could just hold the keys to open their creativity.
The only indication of differentiation most retailers know is price depreciation. Price reduction is not a business plan, it is a death sentence.
Source by Romeo Cliff Richards