Retail business is continuously growing and capturing opportunities available in local and global market. Companies like Walmart, and Tesco has become a model for new entrepreneurs who want to establish their business not necessarily in grocery but in other categories that still not targeted by other players. Purple Heart is a new retail concept that deals with variety of products related to kids, baking accessories, goodies, postcards, and wide range of party and seasonal accessories. The company wants to establish its business in one location in Brighton UK, then gradually wants to expand in other locations. After successful operation and growth of business in one retail store, Purple Heart will plan to expand its business by opening other new outlets in Brighton UK. It is important for Purple Heart to design its marketing mix very effectively keeping in mind the local business environment and competitors. Company should strategically place its brand to attract desired customer size.
The city Brighton is highly populated and well developed city located in England. The economy of city is good with various commercial activities. The city attracted various companies to establish their business which generates good revenue and income for the local population because of high earning opportunities. People of the city have good purchasing power which makes location attractive for Purple Heart to establish another store in the city. The success of other stores already operating in the city is major driving force for the business.
Purple Heart offers wide-range of products for small kids and youngsters. The company offers clothing range, shoes, slippers, gifts, toys and books for kids. Wide ranges of baking and home accessories are designed for women. Besides, Purple Heart also offers huge selection of gifts, cards, occasional stuff and fashion accessories. The products of Purple Heart are specifically designed for kids and young people.
Market Need and Trend:
Customer behavior is continuous changing and becoming more demanding. The customer now looks for services that are very efficient and customer oriented. People need effective solutions in lesser time and at effective cost. The categories and products offered by Purple Heart are designed and selected according to taste of customers. Products offered by Purple Heart are stylish, colorful, trendy and great in quality. Stores designed in manner that they offered unique and unforgettable experience to visitors and customers. Wide range of collection in various categories can makes customers excited. People also can find out accessories, designed for specific occasions like Christmas, Easter and Halloween. The categories and products mix are designed according to the changing behavior and needs of customers. In current environment customer have limited time and they look for stores which offer them maximum solutions with great experience. It is very difficult for any other local retailer to offer such wide range of collections that is offered by Purple Heart. Purple Heart also offers online services and delivery of products .
SWOT Analysis of Purple Heart:
– Wide range of categories and product mix
– Unique customer experience
– Stylish, modern and quality products
– Easily accessible by location population
– Online shopping and speed delivery
– Local Brand
– Poor Recognitions among tourist and foreigners
– Limited coverage
– Business expansion in new markets
– Category and product extension
– Changes in consumer behavior and taste
– Competitors and rivals operating in same market
– Imitation of concepts by rivals
– New entrants
Purple Heart needs to consider it strengths and weaknesses along with threats and opportunities while designing marketing mix for the retail outlet. The retail outlet involve direct dealing with the customer hence it essential that company also consider all marketing elements that emphasize upon effective customer service. The marketing elements of Purple Heart are:
The concept of Purple Heart is focused on providing wide collections of kid’s goods, home and bakery accessories, postcards, and party. Fashion accessories, gifts for youngsters and for specific occasions are also important for the company. In present competitive business environment, it is necessary for any company to differentiate its products from competitors to attract customers and achieve desired goals. Purple Heart emphasizes upon delivering unique experience to all customers who visit the store. The company provides stylish, trendy and quality products that are suitable to fulfill needs of young generation. In retail business, it is very essential that company offers great customer service to make customers happy and satisfied. Normal product can be offered and easily copied by any other competitors hence Purple Heart focuses on offering complete unique experience not only by offering great products but by offering complete value to the customers. Company offer speed delivery, online shopping, free gift packing and other value added services at store to make customers feel valuable and important. Wide-range of collection in variety of categories is difficult for any other competitor to provide. The main objective of Purple Heart is to achieve desired results by gaining on competitive advantages.
Price is also very important factor that play vital role in purchase of any product. Today, customer is well aware and before making any purchase consumer evaluates cost-benefits associated with the product. Consumers buy products only, when the benefits associated with the products are according to its prices. Purple Heart priced its products not very low because of the value and service associate with the products are good. The prices of the Purple Heart’s products are very competitive and not higher than other local operators. Some value added services like gift wrapping, and home delivery within given range is free with the products.
Brighton is a city that has well developed economy and good purchasing power of the customers. Huge business industry and commercial activities make location attractive for various business organizations. Various companies have their offices and premises in the city. It is not only the selection of city that matters for success of business but within city selection of location also increases or decreases the chances of success of business. The location for setting up a retail outlet should be well connected to the target market. The location needs to be quite visible and easily accessible by the people. Setting up out let in crowded commercial place is good idea; this will help in gaining footfall in the outlet. People who are visiting other outlets will also visit Purple Heart outlet.
Promotional activities for Purple Heart should be designed as per the target market, positioning of the store and associated values with variety of the products. Purple Heart is required to provide unique customer experience while visiting retail store and shopping. Purple Heart should offer promotional discounts to make people buy multiple products and increase awareness about various categories available in the store. Initially Purple Heart should offer some discount on second product on the purchase of any product. This will motivate and encourage buyer to buy more products. On purchase of one product sample of any product free can make people realize about the quality and benefits of offered product. These types of promotional activities will motivate buyers to purchase more products .
Human resources play vital role in success of any business especially when the business involves direct dealing with the people and consumers. Purple Heart should hire very skilled, friendly and presentable staff to deal with the customers. All employees are required to be given extensive training on the products, their advantages and uniqueness along with communication skills and customer relationship management skills.
Purple Heart should develop efficient processes to deliver effective customer services. In retail industry due to intense competition, it is essential that customer received full value in terms of quality, price, design and services. Purple Heart emphasizes upon developing efficient supply chain in which all processes starting from procurement of products, designing, packaging, distribution, and retailing and after sales services are monitored. Cost management at all levels of activities will help in competitive pricing of the products. With in retail store processes like selection of merchandise by customer, accurate billing and final check-out of the store will be monitored and controlled effectively. Staff assistance during all processes will make it easy for customer to do the shopping.
The environment of the store plays significant role in making mood of customer to shop. Background music and light aroma enhance the mood of customer and motivate to shop. The selection of music should be according to the target market, selling categories and products. the display of all products should be proper and in a manner that customer can get feel of product by touching them. Store should be clean and lights should be placed to enhance the look of displayed products.
The overall offerings of Purple Heart are different from other competitors in following manner:
– It is difficult for competitors to offer similar wide-range products and selection of categories.
– Retail stores are designed in a manner to offer unique customer experience.
– Excellent customer services within the store.
– Efficient online shopping and speed delivery system that is difficult for any other local player to offer.
Purple Heart has various competitive advantages in terms of products offering, effective processes and online shopping system over any other local player. The success of company depends upon efficiently execution of marketing plan and proper positioning of its brand in the market. Purple Heart should effectively place its brand in the market by emphasizing upon unique values brand offers. The strengths of company are its wide range of categories and products, unique experience and effective customer service which should be highlighted while establishing the business in Brighton city. Purple Heart, after implementation of marketing plan should emphasize upon continuous developments in order to maintain its position in the market. the company can remain in competition if it is able to maintain its competitive advantages.
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