Justification
In this region, passion for various sporting assortment has been marked by an increasing demand. With the recent research showing that retired aged people are prone to various complication due to inadequate sporting activities, the need for sporting has continually increased triggering an upsurge in the sporting gear. Moreover, there are those customers that can hardly be able to purchase a new sporting cloth from the sport stores hence this outlet provides them with an opportunity to enjoy sporting activities while ensuring that they can afford cheap and as good as new sporting garments. With this sharing need, this region desperately require an upscale sport gear store that can be able to satisfy varying needs due to the fact that the currently existing ones lack adequate selection to meet varying sporting need and variable level of income. Currently, the customers that require a special and cheap pair of sporting gear have to travel towards the retail outlets in Northern England regions.
Scott Link Fit will have to be designed in such a way that it will have extensive and unmatched selection of varying sporting gears. Generally, Scott Link will initially be cost prohibitive based on all varying sizes and variety that will have to be stocked per sporting activity. With its unique business model, Scott Link Fit will have extensive selection although other products can be availed to the customer once an order is placed. With overnight shipping being availed at an added cost, the convenience will make the customers to revisit the premise again in addition to recommending it to the friends and other colleagues. While the customers may not like a retail store where they cannot be allowed to try their clothes before buying, this store will be different.
Desired image
At the onset of its retail marketing business, Scott Link Fit will still be at the speculative stages. Therefore, there are some critical issues that it will importantly have to address through the following actions: it will continually incorporate a modest fiscal approach; it will continually thrive at a reasonable rate. This will not be for the sake of expansion but due to the fact that this is the wise move; it will continually build extra awareness through which the customers will continually and successfully be drawn to Scott Link Fit.
Target market
Scott Link Fit is obviously a smart company. The marketing is highlighted as significant to the future profitability and success (Goldsmith 2010; Venkatesan & Farris 2012; Frith 2010; Ankeny 2011). In the store, extensive selection of used clothing and sporting gears will be offered in an arrangement consignment. In addition, it will have a limited selection of closeouts from the manufacturers which will be displayed in the chain links that will be developed later. Therefore, meeting this market need will be enhanced by primarily offering used items that will be discounted off the retail prices that are availed normally.
Summary of the target market
In order to ensure growth of a newly beginning business, Fei-Long and Tsung-Yin (2011) highlights the importance of possessing good information about the market that it wishes to venture as well being comprehensively aware of the common attributes of the most priced and loyal customers. This information is not strange to Scott who has lived in this business environment since his childhood. In addition, the business passion has prompted this entrepreneur to continually examine the consumers in the locality and their changing consumption trend. Demand for the sporting gears is an opening that has apparently been identified after a comprehensive market research which has been aimed at identification of the most viable retail market outlet. Therefore when this information is leveraged, Scott Link will be at a better position to understand who is specifically being served, their particular needs and how the business can be at a better position to hook up and develop an effective communication with them. After comprehensively examining the market and the consumer needs, the chart 1 below summarises the market into three main segments: bargain hunters, participants with limited resources and gearheads.
Market needs
Scott Link will provide the customers with wide ranging assortment of outdoor clothing and gear. However, the guiding principle is very simple, a reasonable price. This will be availed through an arrangement that is consignment styled together with closeouts that will be availed after being directly purchased from the distributors and manufacturers. In summary, the marketing needs will be satisfied using the following approach:
- Selection: A wide range of various gear options and clothing.
- Accessibility: This retail store will remain open for extended hours to capture more customers while at the same time ensuring easy navigation.
- Customer service: Scott will target to ensure that the customers get impressed by the attention level that will be availed on visiting the store.
- Competitive pricing: Discounting of all the items will take place relative to the new prices in the retail market.
The trends in the marketing
For the outdoor clothing and gear, the market trend has to be based on the ability to purchase the products at a discounted price. One way through which the trend can be enhanced is through the business model that will be aimed at selling closeout together with learning from the previous year’s model items of other related businesses. A good example of this model can be observed in rei-outlet.com and sierratradingpost.com. In these sites, only new, discounted and outdoor gears have been sold. Scott Link is different based on the bulk of the utilised utilized merchandise. However, this should not be given a strong emphasis based on the fact that outdoor gear is based on utility as opposed to being based on fashion.
Growth of the target market
The recent England trend of health consciousness especially among the aging people has resulted in an increase in the outdoor activities.
An increase in the popularity of outdoor activities among the young people that recognise the trend as less expensive way through which individuals can entertain themselves through sporting.
An increase in the selection of outdoor gears that are reasonably priced.
Competitive advantage
Should Scott decide to venture into this business immediately, it is apparent that he will enjoy a market whose demand would be high. This is based on the fact that currently, there is no true direct competitor in the Southern England region. Scott Link is likely to face competition from two indirect competitors that are offering similar product in this region. These are indirect competitors due to the fact that one is a normal retailer and the other one is a consignment store. The normal retailer (that is involved with buying and selling of used and new sporting equipment to the public) is situated in 12 miles north of England from the location where Scott will be located. The other competitor is located at a nearby town which however has a small population base. However although these businesses would be regarded as competitors, it is apparent that they are all doing well based on the fact that the level of demand in these regions surpasses the supply that is availed in these two retail outlets.
Another competitive advantage that Scott will enjoy in this business is his matchless capital base. With an inheritance totalling to a substantial amount, it is apparent that Scott is in a position to open and stock a retail business that is large in comparison to the competitors. With this large capital base, Scott Link will be at a position to avail unlimited assortments from which the customers will be certain of finding what they are looking for. Jerath and Zhang (2010) observes that with a large stocking, the customer confidence increases. This also gives the business an opportunity to lower the price of the products due to the discount offered by the manufacturer and distributors for bulk buying (Malshe & Sohi 2009; Haans & Gijsbrechts 2010). With this competitive advantage, Scott Link will be at a position to surpass the competitors whose capital base is small.
For Scott Link, another form of competition is the thrift stores. These stores are engaged in selling of used equipment and clothing. The decent level of used outdoor equipment and clothing that is floating around the thrift stores has been highlighted to be small in addition to being categorised as hit-or-miss. Therefore if the customer has to score the deals, they are required to make numerous rounds on regular basis to various thrift stores.
Customer service
Scott Link will adopt a personalised super customer service. Although Scott Link will mainly deal with used sporting clothing and gears, there is indeed no reason to make an assumption that the used store patrons will deserve anything less than a customer service approach that would be expected from advanced retail chains. This understanding is based on the perception that all the customers are equally important and hence even the consignment retailers have high service expectations. It is not unusual to realise that the consignment shops have customers that are frequent visitors and buyers. With this understanding, Scott Link will maintain a customer database together with their purchasing history as a way of ensuring that immediately they enter the store, they will be approached as familiar customers with the business having their personal information.
Store layouts
As Valentini et al. (2011) emphasizes, a well laid store will ensure that the retailer is able to maximize the sales in a limited area. With Scott Link, the aim will be to ensure that sales are maximised for every square foot that will be allocated as selling space within the rented store. With a well-designed layout, it will be possible to specify the location and size of each department, any structures that will require permanent installation and most importantly, the pattern of the consumers. At the onset of the business, Scott will not expect the customer traffic flow to be a major issue. However if the customer increase raises a concern due to the congestion at the entry, a plan will be effected to ensure that the congestion is eased. If this will not be achievable in one store, then it will prompt Scott to lease the adjacent store to allow for more space for the customers.
For the store that will have two openings (entry and exit), the straight floor plan will be adopted. With this plan, it will be possible for the customers to conveniently enter and exit the store. This store layout also gives the customer an opportunity to walk through the entire store hence gaining an access to all the products offered in the store. With this layout, the customers are highly likely to end up purchasing a product that they come across although they had not earlier planned to make that purchase.
Figure 1: The Straight Floor Plan for Scott Link
As clearly shown, the straight floor layout is an outstanding store layout that can be modelled to fit any type of retail business. This layout ensures that all the fixtures and walls are utilised for creation of small spaces within the retail stores. Therefore, the straight floor is highly recommended for this retail store due to the fact that it is the most economical store design.
Store atmosphere
As Frith (2010) observes, the physical surrounding and features will importantly enhance creation of an image that can be attractive to the customers. In Scott Link, the trendy fixtures and lighting will be used with an aim of creating a favourable atmosphere for the customers; especially the aged customers who are expected to be frequent visitors to the store. Moreover, Scott Link will be striving towards creation of an atmosphere of community and acceptance together with a retail environment whereby the individuals will freely be able to identify and bond with their community and sporting culture defined in the locality.
Merchandising and sales promotion
Scott Link will have to maintain a frequent communication with the customers concerning the products in various ways. For instance, internet will be used to avail the information concerning the company. After acquiring some customer addresses, the information will be availed through mailing, and hand delivery. The promotional effort will also target to have the products differentiated from the competitors.
Initially, public relations and sales promotions will constitute Scott Link promotional strategy. The business will recruit some staff that will work with the retailers with an aim of offering short term sale promotions attached to the sporting contests and events. Moreover, Scott Link will have to work on various trip outfitters on promotional basis.
Scott will also not have an alternative but to incorporate non marketing methods that will be less costly but requiring more creativity. Based on the fact that Scott Link will initially be launched as a small business, discount coupons and skiers will be used at the door of various sporting events.
Initial recommendations relating to the locational strategy for the new chain
Initially, Scott Link Fit will have to be positioned as a premier outlet for sporting clothing and gears. This approach will ensure that it is able to provide the residents with the largest selection, rivalling a few competitors in the region. Therefore, the business competitive edge will be leveraged to ensure achievement of desired locational strategy.
The competitive edge of Scott Link will hence have unmatched selection in the entire South England region. The first is a specific effort that will be aimed at carrying as many assortments as possible. Scott realises that currently, this location does not have a single store that offers wide range of decent second hand sporting clothing and gears to the diverse consumers. With time, the business will open and operate chain stores in the surrounding regions that have a similar problem waiting to be addressed. Therefore in a period of two years, Scott Link will have successfully established a store in every town in the entire southern England region.
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