The person that we interviewed is Nor Kuwaiti Zinnia Abiding. She is the store manager in Watson Personal Care Stores Koala Triggering. She has been holding this position for 3 years. In the beginning, she just worked as a Watson salesperson in Skeletal. She took 5 years to get promoted to a store manager. According to her, they have been in this business for 5 years and they have a lot of experiences. Besides, they rent the shop for RMI, 800 per month. Over the years, Watson has been growing rapidly in their business.
Currently, Watson has over 4,000 stores around the world. Yet, Watson will continue to challenge themselves by expanding their business. They are still ambitious to open more stores in the future. Simultaneously, Watson believe that they are able to grow one percent of market share annually through continuous network expansion. The mission statement of Watson is to bring health, beauty and fun for customers. Watson offer superior quality of beauty and health care to the customers. Watson sets the standard of health, wellness and beauty.
At the same time, Watson provide professional advice for the customer in order to own internal and also external beauty. Over the years, Watson has built a long- standing reputation. This is because Watson often try so hard to held promotion and special offers, in order to ensure their customer to get best value of products and services which they paid for. Watson has more than over 1 ,OHO brands which ranging from medicines, cosmetic products, daily use products and also personal care items. Watson insist to provide only the best quality to the customers. B.
Retail Strategy 1. Who is their Target Market: Watson Personal Care Store Koala Triggering targeted their customer according the demographic such as age, gender, income level and education. According to the manager Watson Koala Triggering, she will focus on aged around 18 to 40 customers. She mentioned that customers who are 18 year old above have contribute a highest purchase power in the store. Besides, Watson set the target market on gender men and women but Watson will focus more on women because women more attach importance to outward appearance than men.
Types of the product show that, there is about 70% merchandise suitable by women such as skincare product, makeup product, and hair care product. For segmentation of income level, Watson will focus on middle income level of customers. Watson manager said that the product prices are reasonable and customers who are income level on RMI 500 to RAMMER are able to buy products in store. Based on the target market Watson, they are not emphasizing education and they will serve as fair on customer from different background education such as primary school, secondary school even though undergraduate students.
Trade area is a contiguous geographic area that account for the majority of a store’s sales and customers. Since Triggering Trade Centre is located in the prime area of Koala Triggering, Watson is considering primary trading area. According to the 201 0 census, total population at Koala Triggering had reached 337,553 citizens in city has generate more than 50% customers. Generally, customers are driving time within 5 to 10 minutes arrived store site. Watson had located in good trade area because it has comparable facilities and famous place closer to the stores such as China town, bank, parking area and so on.
Koala Triggering has given desired provision to set up booths from the neighboring states for they are famous for providing the high quality goods for the shoppers. Koala Triggering has gained the topmost position because t is the only place to showcase the variety of arts and crafts. There will attract a lot of tourist patronized current store at Koala Triggering. 2. Merchandise Assortment Watson Personal Care Store Koala Triggering has carried a lot of famous brand merchandise from other company such as Gatsby, Gingers, Ox, Knacks and so on.
According to the manager Watson, the major brand they carried in the store is their own brand “Watson”. She believes that product “Watson” will conduct the highest regulatory standard and quality guarantees based on customer feedback, intensive research and testing on product. Watson Personal Care Store Koala Triggering has the private brand which is “Watson”. For more than 20 years, Watson has worked with leading experts and researchers from around the world to create own brand products of variety and diversity that bear the Watson heritage that guarantees outstanding quality, value and trust.
The extensive product ranges cover your everyday needs to look good, feel great , including Baby; Bath & Body; Face; Hair Care; Health; Oral; paper and Cotton; Feminine Hygiene and Travel & Accessories. Since Watson is almost selling daily use merchandise such as shampoo, toothpaste, beauty care product and drug reduce, it consider with staple merchandise categories, also call basic merchandise. Customers will continue over an extended time period in Watson store. Watson can predict the demand from customer easies because customers will patronized fairly steady from week to week.
For instance, Watson will provide advertising and discount on beauty product to attract more office girl or housewife patronized. The reasons choose the staple merchandise categories of the life cycle Watson is continuous replenishment. Storekeeper Watson can easily monitor and measure the current store keeping unit (SKIS) sales. Through this method, Watson able develops ordering decision rules to determine when and how much merchandise should be reorder in next ordering process.
For example, when the Watson misstate the quantity of shampoo Watson will cause excess inventory in the store. Watson carries the convenience goods which are provided the sales promotion or advertising to attract customer. Convenience goods are often the products of impulse, as they are easily found by consumers and the products are inexpensive enough for most consumers to purchase. Customer no needs too much information about the product and recently buying the product. As an example, hair care product such as shampoo is considering convenience goods. . Human Resources Organization Structure for Watson Koala Triggering Human resources are people who work for the organization while human resources management (HARM) is the proposes an organization undergoes to manage people in order to achieve the company goals. Human Resources Management carry out many importance moral values such as teamwork, trust, encouragement, development and care among the worker which will help the company to meet the principal of being a good employer and hereby motivating the worker to provide the best effort in their job.
According to the store manager Watson Koala Triggering, sales people or staff Watson should attend the training annually. Watson will provide the orientation program for new workers. In orientation program, Watson will provide the rules and policies company to new employee and they will be supervised by supervisor in daily operation. Supervisor will evaluate employee’s base on sales skills, communication skill, and performance skill workers. For those who are service more than one year or above, Watson will prepare the chance for upgrade position.
Watson Koala Triggering Will hired full-time worker and part-time worker. For full-time worker, Watson will pay the salary base on monthly. Salary will be increase after three month probation period. According to store manager, Watson will provide employee provident fund (PEP) and social security organization (SOCIO) for full-time worker. Besides, Watson will pay the wages for part-time worker base on hourly wage. For example, temporary worker such as student has flexible time worked 2 to 3 hour per day. For part-time worker, Watson are not provided PEP and SOCIO for them.
Watson Personal Care Store Koala Triggering are allow the sales people cross selling to customer in the store because Watson provide a lot of product to get the customer to spend more money by adding more products from other categories than the product being viewed or purchased. Cross sell will increase the profit Watson and gain customer loyalty. According to store manager Watson, they are not any outsource activities in business because they just focus in selling product for customer. 4. Store Location The retail store that we interviewed is Watson Personal Care Stores. It is located in the Main Street.
Its location is in the town of Koala Triggering here nearby Chinatown. Main Street store location tends to have good walking ability. This is because usually there are a lot of people walking on the main street and often caused pedestrian congestion. Generally, Main Street is for people to walk and browse around which should be convenient and efficient for them in looking for particular product or service. Besides, Main Street store location is normally located nearby residential area. This is because there are many residents living nearby to provide generous potential customers to the business.
Watson choose this location because they ant to attract more customers, especially pedestrians. During peak hours or business hours, there are a lot of people who are walking on the street. Watson would like to attract them to enter their store to purchase health care and beauty care products. Besides, Watson is also looking for lower occupancy cost. In other words, they wish to reduce rental expenses. This is because the rental expenses which they are paying are much lower than other store location, particularly location in shopping mall. By saving the rental expenses, they can use it to improve in other aspects such as staff and agility.
Other than that, Watson choose this location because it is very strategic. As mentioned above, it is located in the Main Street and nearby Chinatown. Therefore, the crowds of the streets can provide enough customers for them. There are also enough facilities nearby Watson which make its location strategic. For example, there is a bus station in within mom distance, namely AMBIT. In the aspect of accommodation, there are several of hotels nearby Watson. For food and drinks, there are a lot of cafes and restaurant around the town. In my opinion, this site is accessible for the customer due to several reasons.
Firstly, the location of Watson is noticeable. This enable people to notice the shop when passing by, especially pedestrians. In addition, this site provides enough car parks for the people. Therefore, it is convenient for those who are driving and looking for health and beauty care products. At the same time, they also provide disabled parking for disabled. Watson also provides well-planned accessible route into shop. During business hours, they will unlock all doors for entrance and exit. Therefore, the shop can be easily accessed by the customers. Last but tot least, Watson provides accessible customer information.
They always update the customer information from time to time to ensure it is useful. At the same time, Watson always maintain accessible customer information by consistently educating their staffs about them. 5. Pricing Pricing strategy in marketing is the pursuit of identifying the optimum price for a product. The pricing strategy tends to be one of the more critical components of the marketing mix and is focused on generating revenue and ultimately profit for the company. A company must fully understand customers’ desire and the amount they willing to pay for it.
Watson Personal Care Store in Koala Triggering will implement its pricing strategies based on the arrangement of headquarter in Koala Lump due to franchise basic. Watson Personal Care Store are using high/low price strategy frequently. Watson Malaysia always offering low price to some merchandise especially facial products or health product to attract more female customers that are sensitive to price changes. Besides that Watson Malaysia will customize its price strategy due to any festival celebration Or special events such as Mothers day promotion or Hair Array celebration.
These promotion can attract customers that demanding specific merchandise, for example, customers might buy the bird nest facial products that only limited in days. In addition, Watson Personal Care Store are using other practice such as rebates and has partnered with various popular F brands nationwide to offer card members a plethora of dining privileges including discounts, cash vouchers and complimentary signature food items with minimum spending at Partner outlets such as The Manhattan Fish Market.
Moreover, Watson Personal Care Store is providing a frequent shopper program by launching he Watson PIP card with the key objective of rewarding loyal customers through an effective point system that gives up to 10 times the points on selected items purchased, exclusive member’s price items and invitations to “money can’t buy experiences” such as the Watson Music Festival, and the most recent mass dance event, the Watson Move Your Body held at the Sunday Lagoon Theme Park.
To enjoy the privileges, card members just have to flash the Watson PIP Card before payment. Customers will more satisfied to purchase more merchandise with Watson Personal Care Store as Watson tot only helps their customers to save more when purchasing in retail store, but also in other partnership retail store as well. 6. Communication Mix Communication programs implemented by many retailers to attract customers to retail location and encourages them to buy the merchandise available.
To inform customers about Watson Personal Care Store Koala Triggering and encourage repeat visits and purchase, Watson Malaysia has used few communication mix: Watson personal Care Store used various mass media advertising to communicate with customers to generate awareness in the need recognition of buying stages. Watson Personal Care Store are form frequently advertising in magazines especially female magazines as female customers are more focus on health and skin care products.
In addition, Watson Personal Care Store admits that TV commercial plays an important role to attract customers to retail location as TV provides a platform for image advertising and the opportunity to communicate through both visual images and sound. Watson Personal Care Store understand that customer behavior nowadays pursue fast and efficient shopping, and their customers mostly will done a little bit survey before purchase merchandise from them, therefore, Watson Personal Care Store are emphasizing the uses of online media such as Websites: Watson Personal Care Store has setting up an official merchandise website: http:// win. Tattoos. Com. My/ which are used to build their brand images: inform customers of store location, special events and sell merchandise and services. Watson Personal Care Store is also involves in search engine marketing (SEEM) to improve the visibility of their websites in searches. Regarding social media, Watson Personal Care Store are actively using Faceable to create online communities in which they share ideas, information or interpersonal message. Watson Malaysia PR department believes word-of-mouth communication generates effective sales, which social media plays a significant role in this.
Watson Personal Care Store has cooperative advertising with LINE Malaysia, a mobile chatting app to share the current promotional items with customers who add Watson Personal Care Store as friend. Besides, the store is combining its PIP card with Touch & Go features to allow the convenience of cashless shopping and free reload for all Touch ‘n Go cards in all Watson stores nationwide. Watson Personal Care Store’s public relationship department involves managing communication and legislations to build and maintain a positive image and to help customer to solve problem.
The Store’s PR department always organizing campaign to attract customers such as” Say Yes to Watson brand” campaign to create awareness among potential customers. Watson are only using Rebates in sales promotion. Watson Malaysia are using instant rebates that can be redeemed at the point-of-purchase. Customers who join as members are having privilege to redeem their point, as every RMI . 00 spent considered a point, and the point will 5 times more when you spending on your birthday months and etc. 7.
Store Layout Store design is the design in which a store’s interior decoration is set up to display their products brands and create attractive images to attract customer. A well-planned of store layout will display overall image of the store and creates the perception that customer have about the store’s environment. The well design of the store is not only attract customer to enter the store but it will also cause them to make a purchase of goods (etc. ‘ impulse purchase). This will allow the retailer to increase their sale and make profit.
Watson Personal Care Store Koala Triggering is using Free-Form tout, also known as boutique layout in which fixtures and merchandise are grouped into an asymmetric pattern on the sales floor to display their products. Free-form pattern is an easy to use layout as it its offer shopping convenience and increase the time consumer are willing to spend in the store. Customer may shop freely through all the fixtures because there is greater variety of merchandise and they can spend their time to search the product they want to purchase.
The free-form pattern is effective to customer flow because the layout is attracting the customer to shop from the front of he store until the back of the store and this will increase the time that customer spend into the store and build the chances that they will purchase more product. Furthermore, the Watson personal care store also use eyes level to attract the customer eyes which they will put the prod cut at proper eye level that help to improve sales. For instance, they will put the new makeup product at the front of store to attract the lady’s eyes level.
Beside, Watson personal care store is using gondola shelving fixture to display their product. A gondola shelving is a freestanding fixture and large base with a retrial spine or wall fitted with sockets Or notches into which a variety of shelves, bins, baskets and other hardware can be inserted used by Watson to display their merchandise. They are using two type of gondola shelving which is pharmacy gondola shelving and round gondola shelving to display their products. The using of both type of gondola shelving reveal the environment of the store neat and clean.
Neatly and orderly arrangement of merchandise in the store will attract consumer to shop freely and spend more time to choose their products because there are no define traffic pattern in store. The store also arrange the product based on category so that the consumer can easily get the product they want. Moreover, Watson personal care store is using LED-based Tetra Max signage to light up their store. Customer can see clearly inside the store through the windows because of the bright light that reflect the internal condition of the store.
The windows display will attract customer to enter the store and provide visual message about the type of merchandise offered inside the store. The LED-based Tetra Max signage system as choose by Watson signage solution because of its quality eminence, maintenance and help to reduce energy cost. The bright environment inside the store is a strategy for the retailer to highlight the merchandise and display the expensive products under the bright light to draw customer attention. Besides, the condition of the light will also catch a mood that enhances a store’s image. Watson personal care store also will play music occasionally.
The store more likely to play soft and relaxing song. Play music in a store can influence the customer to spend more their time and money because they are more likely to shop in a comfortable and relaxing environment. They choose to put soft music rather than loud music because loud song will affect the customer to less total time spent in the store. For example, they will choose to play acoustic song of West life such as “Nothing goanna change my love for you “-As an addition, smell has a large impact on human emotion. The smell inside each store is so importance because this will decide the comfortable level of the customer.
The scent of the Watson personal care store is so fresh and smell good, the smell inside the store is attract the customer to spend more time in the shop because the store is smell aromatic ,relax and comfortable. . Customer Service Customer service is a set of activities and programs undertaken by retailer to make the shopping experience more rewarding. It increases the value customer perceived from merchandise and services they purchased. Watson Personal Care Store is providing a standardized service as their employees must have deep product knowledge in their retail shop.
When customers are facing problem when choosing product that suitable for their own, the employees can give advice and introduce some suitable products that can solve their customer problems. Offering standardized services Increase the inconsistency of the service quality and customers might frequent visit their store, as they think the Store is not only a retailer or a salesperson to them, but a friend that care for their needs. Besides, the Store has store or website layout that enables customers to locate merchandise easily, having relevant information on display and minimizing the time required for display.
Watson Personal Care Store also providing home delivery service which enables customers especially LO that are not able to do shopping can easily online shopping with no worries. Our team has interviewed 3 customers from Watson in Koala Triggering. Overall, these customers are satisfied with the customer service this outlet provided. Pan Azurite, a 30 years old, an office lady claimed that the salesperson in the store will approach to her politely to ask what product that she is seeking from the store and trying to give some similar products to help to solve her problem.
Besides, Mr.. Sulkier from Wake Burr stated that he was helping her wife to buy some facial mask and lotion that he has no idea what to buy and these employees in the store gave a big help by giving suggestion what products should be suitable for her wife. Lastly, a young lady Miss Won stated that she is a loyal customer of Watson Malaysia Koala Triggering as Watson establish PIP card that help her save a lot. In addition, this store will handle their customer complaint by providing a suggestion box near the counter.
Watson also provided customer service hotlist so that customers can disclose their problem verbally and their customer service will try to give the best solution to solve their customer problem. Last but not least, Watson does not empowered their salesperson to make decision, any infrequent problem the employees will firstly disclosed to their store managers. Any changes of price of their merchandise will based on their upper management’s decision. C. Competitive Advantage The competitive advantage that Watson personal care store have over similar stores is professional marketing concept.
Health and beauty care items are the main products of Watson. Therefore, Watson emphasize theme of health and fashionable. Most of the female consumers think that the products from Watson are not expensive. Watson has succeeded to plant a concept of everyone is affordable to have beauty and health. Some of the users even describe Watson is a personal care store selling discounted products which are branded. Therefore, Watson attract a lot of female consumers to buy their products. Presently, Watson has total of over 600 types of own brand sheet. They can all be so famous because of the brand of Watson.
Besides, Watson maintain its competitive advantage by providing superior quality of products and customer services for the consumers. Thus, its reputation can be maintained worldwide from time to time. With their accurate and effective marketing concept, Watson can always walk in front of their competitors. They retain this advantage over their competition by several ways. Firstly, Watson need to expand their market to higher level. In other words, their sales would be improved also. Besides, it is very crucial that Watson have to maintain their good reputation.
Good reputation over the years has made Watson to be one of the largest personal care stores. Once their reputation is contaminated, they might lose their competitive advantage which they have built for so many years. Quality of customer services gives a great impact on reputation. Therefore, Watson should always provide superior customer services. Watson have to often provide training to their staff in order to improve their quality of customer services. Other than that, Watson should also focus on latest technology. This is because latest technology always brings any types of business walking in front of the others.
Watson have to be aware that any update of technology. They need to know how to use the large volume of customer data that technology has made available. For example, Watson need to focus more on online shopping since majority of people are shopping via online due to factor of convenience. Therefore, Watson can put more efforts in how to reduce the procedure of their online shopping. D. Your suggestion to improve the store and/ or the In my opinion, I think that Watson personal care tore management store can improve the store management by improving their CRM (Customer Relationship Management).
To improve the customer relationship, customer’s experience plays a vital role. Watson must be able to evaluate customers experience. There are many factors that can make a normal customer into a loyal customer. The staff should not be only cares about the product they selling, availability of assistance should be focused too. For example, the staff should not only know how to sell a product to customer. Conversely, they should try to understand what customer wants and needs. After that, the Taft should find out a solution to solve the problem by introducing products.
At the same time, Watson should look for the staff that has consistency, patience and sincerity during the hiring process. While experience is very crucial too, this is because inexperienced staffs will be facing an inability to cope difficult situation. Besides that, Watson personal care store can improve their inventory and merchandise management. Nowadays, it is very important to have well-planned inventory management. A good inventory management has direct impact to the quality of products. Watson should plan their inventory accordingly.
For example, they should only purchase products in bulk which are selling fast and have high inventory turnover ratio. The aim to doing this is to ensure the quality of products purchased by Watson is always in good condition. If they do the same thing on the products which are selling slow and have low inventory turnover ratio, the quality of the products might be deteriorated by the period of being stored in the wardroom. Therefore, they should be able differentiate all types of inventory and manage them well. In addition, Watson can customers to give more feedbacks.
For instance, they can ask for more feedbacks from the customer regarding the quality of beauty and health care products or the quality of services offered by the staff. By doing so, Watson will know which of the aspects should be given more attention to improve. For example, if the quality of customer services is complained by the customers, Watson should offer more training problem to the staff in order to improve their service quality.