Targeting Consumers with Marketing Strategies and Window Displays

Developing, Managing and Operating a Retail Business

Introduction

One of the most overwhelming trends in the retailing business today is the shift from brick-and-mortar to ecommerce. Amazon has revolutionized the way consumers think about shopping, and Amazon’s entry into the grocery industry through its purchase of Whole Foods has also changed the way people think about getting groceries. Services offered by companies like Shopify, Instacart, DoorDash and others now make it possible for people to order items from grocers and get them delivered to their homes or places of business. It is no longer necessary to leave one’s house to get milk, eggs, bacon, or any of the household items one needs. A lot has changed in the past few years, and Kroger is focused on meeting the demands of a tech-heavy consumer-base that now wants a delivery option. For Kroger to keep pace with other retailers in the grocery industry, it is leveraging the Internet to create a delivery service for people who want to shop for groceries online. Feedback that I have received from Assignment 1 has been used to think more deeply about what a retailer like Kroger can do to get in front of trends so as to be a leader in the industry instead of falling behind the curve and having to play catch-up. This paper will propose strategies for my own business regarding targeting customers and information gathering to develop the customer base; it will include a plan for recruiting, training and managing staff; it will discuss strategy for operational management; it will put forward a name, mission, philosophy and location for the retail store; and it will develop a plan for cultivating an inviting store atmosphere and a corresponding window display.

Strategies for Targeting Customers and Information Gathering

In retail there are multiple types of customers to target. These range from the spontaneous smart shopper to the low involvement shopper, and each needs to be understood in order for my retailer to reach them all (Atkins, Kumar & Kim; Conlin & Labban). The best way to understand them is to gather information on them, which can be accomplished by way of survey in which consumers are called on the phone or surveyed online through social media. Another way is to gather Big Data on consumers, which can be collected by companies like Google, Facebook and others. Big Data provides retailers with sufficient information about the target customers’ habits, interests, ages, and allows them to develop a profile.

Strategies for targeting customers to develop my customer base are: 1) to use displays to target spontaneous shoppers: these shoppers have no pre-determined list and simply going in to buy whatever looks good; displays can be used to attract their attention and get them to purchase a product that we want to move as they are going to be swayed by displays, advertisements, discounts, etc.; 2) involved smart shoppers can be targeted by offering a shopping member club service that allows them to earn points towards discounts the more they shop; and 3) apathetic shoppers can be targeted by promoting deliveries through online or app-based ordering. These strategies would allow me to develop my own customer base.

As the company is going after a specific type of shopper, one who is interested in wholesome, organic, locally-produced foods, it is likely that most shoppers will be involved smart shoppers. This means that offering a club service will be the most advantageous way to attract customers and gather information. Once email information is obtained from customers and they are able to log in to the company’s website cookies can be used to track their browsing history so that more can be known about what they are looking at and what their interests are.

Approach to Recruiting, Training and Managing Staff

The most important aspect to recruiting is identifying a large enough talent pool so that one is not limited in terms of potential staff. The second most important aspect to recruiting is making sure that one is able to match the right people with the right skills and characteristics to the right jobs and positions in the store. This can be done by looking at people’s online resumes via sites like LinkedIn or Facebook. A lot can be learned of potential hires by using the information they post on their social media.

Once staff are recruited, it is necessary to train them, and one of the best ways to train is to use an on-boarding process that involves mentors. Mentors are individuals who basically provide support for new hires as they learn the ropes on the job. Instead of having questions but no one to ask, new hires can turn to their mentors whenever they have an issue or need advice: the mentor is there to make sure the new hire both understands the role and is comfortable as he transitions into it. Training helps the new hire to understand the workplace culture, the values the company promotes, and what his duties and responsibilities are. The mentor provides support with morale and facilitates effective integration.

The best way to manage staff is to use authentic leadership (Boekhorst, 2015). Authentic leadership provides workers with an example of how to conduct themselves, and the leader is the one who gives this example in his own conduct. This helps to create a cohesive and consistent workplace environment where the tone is set by the leader, who is not just talking the talk but is also showing in his own actions the kind of values, demeanor and character expected of all workers. When workers see their own leader applying himself to the corporate values promoted, they are more inclined to take them seriously and embrace them too. Thus it will be important to hire a manager who is capable of authentic leadership and who embodies the values that the company wants to foster.

Strategic Plan for Operational Management

Operational management should be guided by an appropriate values theory, such as needs theory or motivational theory so that they can make the right decisions for the front line. This will include working with both upper and lower level managers so that adequate internal analysis of resources can be obtained. The goal is to understand what the competitive advantage of the company is and how it can be leveraged to maximize profit potential. For my retailing company, operational management must understand what sets our company apart from others and must be cognizant of the external environment as well. Environmental uncertainty can cause disruption in an organization, so operational management must be focused not only the internal elements of the company but also on the external elements. One of the big issues for my retail company will be to prevent high turnover rates, as turnover is often one of the most costly factors that can drag on profitability.

Because of the philosophy of the company, the value chain system is going to be very important for the management team. Operational management will have to work with stakeholders who embrace the same values as the company and who are committed to the same goals. This will require networking and doing research into what producers are available to meet the needs of the store and its consumers.

Name, Mission, Philosophy and Location

The name of my store will be: Fresh ‘N’ Free. The store will focus on bringing local produce to market as well organic foods free from pesticide and other artificial or chemical ingredients. This focus will capitalize on a growing trend in American commerce for wholesome, non-GMO foods that are health-positive and not pre-packaged or obtained from third world countries where child slavery is often used to obtain produce in an unethical way.

The mission of the company will be to provide consumers with fresh, locally-produced foods as often as possible and to sell only organic food items from producers who are ethically active in the industry. The goal is to allow consumers to eat well while feeling free from any guilt of worrying that the food they consumed was picked or harvested by child slaves as is so often the case in much of the undeveloped world.

The philosophy of the company is that it will strive at all times to bring to its consumers meats, cheeses, dairy items, produce and other household items that are organic, good for the environment, free of pollutants, and obtained by the most appropriate ethical standards used in the industry today.

The location of the store will be suburban, but within city limits so that it can attract both urban dwellers and those who have migrated to the suburban area but want food that is fresh and wholesome. This is a good location because it satisfies the needs of urban dwellers for foods that they cannot often get unless they reside in rural areas. The point of this location is to be able to bring what is available in the rural countryside to an urban area where it is in demand by consumers who want to eat healthy and live a guilt-free lifestyle.