Explanation of Tool:
Pop-Up stores are shops that open for business in a temporary location for a temporary time.
What Types of Businesses Could Use It:
Any business can use this tool, especially retail.
Example of a Business That Uses It:
Target has opened a number of Pop-Up stores in the past, including one on a boat docked at a New York City Pier and later, another in the city’s Rockefeller Center to promote their partnership with designer Isaac Mizrahi (“Pop-Up Retail” 2004). Target’s latest Pop-Up store will be open for only one day, February 23 of this year; it will help introduce the store to Canadian audiences as well as promote their partnership with designer Jason Wu (Shaw 2012).
Is there Any Special Technology or Capability Required?
A retailer will need well-trained staff that is ready to move in to a new location quickly to promote and sell the product. Other capabilities may be required depending on the location and style of the Pop-Up store, such as set designers who can make the space attractive and unique.
What are the Benefits to the Business:
The top benefit for the business is that it will help to grab attention for the brand and its products. It could also help as part of a test to see how a more permanent location could fare if placed in a similar location.
What are Drawbacks to the Business:
The drawback is the expense of this temporary campaign, especially if it fails to excite consumers.
Natural Coffee Shop
How could this tool be used to promote your team’s product?
A Pop-Up store could be used around the country to help introduce our products to more people. Customers will have a chance to try our product in a unique environment, and hopefully continue to seek our brand in local stores or visit our permanent venues.
Loyalty Schemes
Explanation of Tool:
A Loyalty Scheme is designed to gain the repeat patronage of customers by rewarding them with benefits the more often they purchase items or services from the business.
What Types of Businesses Could Use It:
Any business can use this tool.
Example of a Business That Uses It:
Starbucks coffee, the National auto-rental company, and Best Buy all have loyalty programs for their customers (Notte 2010).
Is there Any Special Technology or Capability Required?
A company will need a computer database to help keep track of customers’ purchases so rewards can be offered at the promised time. It will also need to find a way to produce something for the customers to use as evidence of their membership in the program, such as a card with a barcode.
What are the Benefits to the Business:
The biggest benefit is that the company can retain more of its customers. This means bigger profits because “companies can boost profits by almost 100 per cent by retaining just 5 per cent more of their customers” (O’Malley 47).
What are Drawbacks to the Business:
The drawback is that customers may develop loyalty to the scheme and not the brand (O’Malley 52). If another brand with similar products offers a loyalty scheme that appears better to customers than our own, we can lose customers.
Natural Coffee Shop
How could this tool be used to promote your team’s product?
Works Cited
Notte, Jason (25 June 2010). “5 Best, 5 Worst Customer-Loyalty Programs.” The Street. Web.
O’Malley, Lisa (1998). “Can Loyalty Schemes Really Build Loyalty?” Marketing Intelligence &
Planning, pp. 47–55
Shaw, Hollie (17 Feb. 2012). “Target to open Toronto pop-up store Feb. 23.” Financial Post Web. < http://business.financialpost.com/2012/02/17/target-to-open-toronto-pop-up-store-feb-23/>
“Pop-Up Retail” (Jan. 2009). TrendWatching.com. Web.
