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Team Manifesto 7
Introduction 8-9
Methodology 10-11
Brand Background 13
Competitors 14-15
SWOT analysis 16
PEST analysis 17
SECTION 1
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SECTION 2 Loyalty 20-23
Perceptual Map 22 The Loyalty Loop 23 The Consumer Journey 24 Maslows Hierarchy 25 Consumer 25-27 Consumer Profiles 26.1- 26.5 New Technology 28-31
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Appendix A2- Social Media Pages 58 Appendix B1- Critical Path 59
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Appendix A1- Burberry Case Study 57
41 Appendix B2- Group Communication 60-61 Appendix C1- Questionnaires 62 Appendix C2- Consent Forms 63 Appendix C3- Online Quesionnaire 64 Appendix D1- Consumer Infographic 65 Appendix D2- Sales Infographic 66 Appendix D3- Online Inforgraphic 67
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Appendix E- Extra Work 68-69
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APPENDIX
SECTION 1
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TEAM MANIFESTO As a team we agreed honesty, communication and positivity are the most important values within a group to create work to a high standard, successfully together. We must communicate how we are feeling about work, deadlines and the group whilst remaining honest about what we can achieve, when we can achieve it and if we need help. If another member of the group feels unsure/nervous/ upset about the group or work we must listen, be honest and open with one another to dissolve any situations quickly and effectively to enable us to keep on track. As each individual has different strengths and weaknesses we decide to use these to our advantage by honestly saying what our strengths are and what we wish to improve on. Thus we can play to one another’s strengths whilst helping improve each other’s weaknesses to make a stronger team. With the use of Facebook to communicate easily and effectively with one another about work and meeting times, it allows us to have 24-hour contact. We agreed that no one is the ‘boss’ of the group and we all must take responsibility for our own work and the work we create as a team, motivating each other and keeping positive as deadlines approach and stress levels rise. As a group we worked really hard together, dealing with each difficult situation well and calmly, sticking to deadlines, communicate concerns, ideas, information and improvements. Sharing responsibility equally and remained positive and honest throughout.
Rose Johnson
Christie Hutchinson
Poppy Stalker
Brian Lui
Grace Jorden
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‘94 % OF RETAILERS FAILING TO ADDRESS THE TECHNOLOGICAL NEEDS OF THE CONSUMER WILL SUFFER A COMPETITIVE DISADVANTAGE’- SAMSUNG
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INTRODUCTION 94 % of retailers failing to address the technological needs of the consumer will suffer a competitive disadvantage. (Samsung, 2013) Many bricks and mortar retailers are responding to the threat of Internet based shopping by providing entertaining and fun retail environments that virtual retailers cannot match (Kim, 2007). Going shopping is no longer a question of providing the product that a consumer needs but also creating an experience that they desire – this is up to the retailer to achieve. This report explores the future of retail for Liberty London, taking into account the current shift in advancements of technology and also the craving from the consumer for something that is engaging and convenient. The report will take you through the development of our smartphone and loyalty concept, showing the influences from the Liberty consumer journey, existing loyalty schemes and the emergences of new technologies that have inspired us to create a new concept for the Liberty brand that engages the consumer in a new, unique and digitalised way.
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METHODOLOGY Initially, our big idea was rather far-fetched and extravagant and some elements may have been too advanced for Liberty to succeed in creating. Therefore, our primary research trip to London gave us insight from both consumers and in store staff. This section of the report will highlight how we went about our research to enable us to make a more simplistic and realistic big idea. Throughout the brief we undertook various types of research to gain a full understanding into customer behaviour regarding loyalty and smartphones. We undertook primary and secondary research to ensure our idea was fully plausible and something that customers would be interested in. PRIMARY RESEARCH Prior to coming up with our big idea, we created an online survey on typeform.com, using open and closed questions to understand the shopping behaviour of consumers regarding loyalty schemes and smartphones. We asked people between the ages of eighteen and forty to take part in order to gain an understanding of various shopping behaviours. However, after collecting results it became evident that not all of the information was relevant for the consumer and inferring results was difficult. On the other hand, it was a good starting point as we gathered data to influence our further research. Following on from this, we created a questionnaire for consumers (Appendix C1) and sales advisors (Appendix C1) to gain a more specific insight regarding our big idea and took this both into Nottingham Town centre and London. We concurrently observed shoppers at hot spot points that may influence them to use their smartphone, for example transitional stages such as stairwells or whilst leaving the store. We then created a tally chart/ infographic to obtain results. (Appendix D1)
SECONDARY RESEARCH Through our secondary research we wanted to discover more about our consumer and how to target them. We used Mintel and Nexis UK to investigate consumers’ attitudes towards luxury brands and their use of smartphones. We used various websites and books to gain an insight into loyalty and emerging technologies to help influence our big idea as to what would be plausible. The SWOT (Page 16) and PEST (Page 17) analysis were useful to us when focusing on the opportunities for smartphone technology and how this can be incorporated into Liberty’s loyalty scheme. Through our primary research, we realised that the loyalty and customer service element of Liberty ran parallel to one another. We created a perceptual map to visualise this (Page 22) We used Maslow’s Hierarchy of Needs triangle (Page 25) to visually show the motivation behind the consumer decision process.
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REPORT BREAKDOWN
Total Word Count- 5,511
Introduction- All- 164 words Brian- 934 words Poppy- 1,148 words Grace- 1,078 words Christie- 749 words Rose- 1,320 words Conclusion- All- 179 words Poppy Edited Brian’s section on competitors and brand background/history. Wrote Loyalty section. Designed Liberty Connect app and Twitter and Facebook mock-ups. Designed infographics for Consumer Generation X and Y Survey infographics (online, sales assistant and consumer). Wrote Critical Path and Team Manifesto. Intro/Conclusion. Grace – Edited Brian’s section on competitors and brand background/history. Intro/Conclusion. Wrote technology section. PEST/SWOT Wrote consumer decision process. References/Bibliography/Appendix Rose Intro/Conclusion. Edited Brian’s section on competitors and brand background/history. Wrote the Big Idea. Layout. Christie Edited Brian’s section on competitors and brand background/history. Intro/Conclusion. Wrote consumer section. Infographics for consumer Generation C. Instore and Visual Merchandising mock-ups.
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BRAND BACKGROUND Liberty London is a store with heritage, class and a loyal customer base, which is demonstrated through the British, rich structure founded in 1875 by Arthur Lasenby Liberty. The Liberty brand continues to stand for integrity, value, quality and most importantly, a beautifully designed product. Arthur travelled the world, bringing back products from Japan and the East to then sell to his clientele. Lasenby strongly believed his well-cultured and educated personality could bring something innovative and exciting to fashion and home ware in the 1800’s (Callaway, 1992). Arthur Lasenby took his inspiration and began building an emporium of goods with a £2000 loan and only three staff in 1875. Soon Liberty London was a success and within 18 months all loans had been repaid (Limited, 2014). The historical department store is described by staff in the Liberty London documentary as being ‘an emporium of luxury goods,’ consisting of four floors, showcasing quality products from around the world. To this day Liberty London continues to grow in providing a unique and high quality service, whilst keeping its heritage at the forefront of the brand. (Channel 4, 2013) Secret staircases and complex elevators provide shoppers with a continuation of the Liberty experience as they make their transition from floor to floor, going through the journey of men and women’s fashion, accessories, fragrance, home ware and stationary. But above all of these departments, Liberty is ultimately renowned for their printed fabrics and haberdashery. The store layout allows the brand to showcase its historical background. However due to the small size, Liberty store must only display what they deem to be perfect for their consumer. In order to keep up with its competitors the Liberty brand now needs to provide customers with a journey that extends past the point of purchase, in the hope of keeping them loyal.
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COMPETITORS As a department store Liberty faces many competitors. This section explores those competitors in order to gain a better understanding of the current market and provide insight into the ways Liberty can differentiate themselves by creating a cutting edge and unique experience that stands out from its rivals. Similarly to Liberty, Harrods is a department store that based in London, with a historical heritage dating back to the 1800’s. The Harrods consumer is middle class, with a high salary, well educated and therefore expects a wide selection of products and services. Often shopping in department stores for the convenience of everything being under one roof. Harrods is the largest department store in Europe, holding 330 departments. Meaning it holds an advantage over Liberty through the vast amount of products it can display but also the disadvantage of not always presenting the best products that the consumer can trust are of good quality. Harrods provides the consumer with many other services within the store such as hair salons, restaurants and a pharmacy, creating a place of convenience for the consumer who is constantly on the go. However this creates a busy and chaotic environment. With Liberty atmosphere contrasts to this in that it’s much more relaxed and personalised to each consumer. Selfridges is the second largest department store on Oxford Street, London, with branches also located in Birmingham and Manchester. This exposes the Selfridges brand to a higher footfall and a wider customer demographic but also takes away the exclusivity and individuality that Liberty has as a brand. In a similar way to Liberty, Selfridges is heavily focused on customer service with their motto being ‘the customer is always right.’ However Selfridges are unable to achieve the same customer intimacy that Liberty have due to the large amounts of retail space, With Liberty creating a better customer bond due to the ability to spend more time on a one to one basis. Selfridges is the first ever retailer to win the worlds best department store three times and is renowned for its creative visual merchandising and in store displays (My Customer, 2013). Fig. 2, Harvey Nichols VM, London, 2014
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John Lewis is a bigger chain of department stores than any mentioned above, with over 43 department stores in Britain. John Lewis has a younger consumer base than that of Liberty, with 39% of the consumers being under the age of 34 years old and only 28% being over the age of 55 years old (My Customer, 2013). Due to John Lewis being a larger chain with prices ranging instore it has a wider consumer base meaning their most successful ways of advertising are through Television adverts. Often their advertisements are more targeted towards those with a family, as they are a family brand. Unlike Liberty their consumers purchase more mass orientated items such as home ware and electronics, rather than unusual pieces. Harvey Nichols is an international department store that opened originally in Hong Kong, Dubai and Turkey. With their main products being fashion and beauty, they house many international brands, which cannot be found elsewhere. However they have more of a narrow market than other department stores because of the products highly luxurious offered, targeting high salary earners. Therefore it eliminates those consumers who are busy and on the go. The store has less of an experience than others, 4 01 and is more of a traditional department store focused more towards selling. Harvey Nichols has more of a current online ,2 on d presence than some of its competitors, with a simple ‘Connect’ button on their website which redirects you to their Instagram, ab, Lon L Twitter, Youtube, Facebook and Pinterest. Meaning they reach a wider consumer base and are more targeted towards the grance ra F younger, more technologically advanced consumer (Pevsner, Cherry, Newman, 1986). es dg After analysing the main competitors its clear to see the areas in which Liberty need to expand. These include making their visual merchandising memorable and original with the use of digitally advanced technology.
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SWOT ANALYSIS
+ Some Similar Products to Other Stores and Department Stores - See ‘Threats - Competitors’ + Out Dated Loyalty System - Traditional Card Stystem is 15 Years Old - Lack of Technology Based Consumer Engagement, Despite Increase in Technological Advances - Not Utilising the Chance to Connect with Generation Y’s Young Professionals, or Preparing to Connect With Generation I - Older Primary Consumer Already Established - Generation Jones - Generation X - Over 70% of People in the UK own a Smartphone + High Price Points + Store Location (Carnaby Street) - More Difficult to Attract Consumers who aren’t Currently Aware of the Store as Location is not as Primary as Some Other Similar Stores Such as Selfridges (Oxford Street) - Attracting Tourists and Mass Consumers + Store Size - Can’t Fit as Many Products as Some Other Competetors + Very Traditional Visual Merchandising - Limits in terms of technological integration
LIBERTY SWOT ANALYSIS THREATS
OPPORTNITIES
+ New Technology + Rise in Social Media Marketing + Connection with Generation Y - As Generation X & Generation Jones age + Over 70% of People in the UK Own a Smartphone + Learn More About There Consumer Via There Smartphone - IBM Presence Zones - Sex - How They Navigate Through Store - What t=Products They Look At - How Long They Look At Things - Potential for VM Optimisation - Targeted Offers & Promotions - Are Customers Return shoppers + Increase Online Presence + Shoppers Who Use There Mobile Phones More in Store Spend More in Store
WEAKNESSES
STRENGTHS
+ Reputation + Brand Heritage - Sine 1875 + Personal Customer Experience & Customer Service + Store Location - Secondary Location (Carnaby Street), as opposed to Oxford Street etc - More exclusive; for people who know about it and where it is + Legacy - Integrity - Value - Indviduality - Beautifully Designed Products + Unique Environment - Window Displays - Store Architecture + Loyal Customer - Liberty’s Loyalty Program - Traditional - 15 Years Old - 1 Point Per £! + Vast Range of Products - Product Exclusives - Mens - Womens - Beauty - Accessories - Fabric - Home - Kids + Brands - Own Brands -Liberty London - Accessories - Other Brands - Upper High Street to Designer Brands + Collaborations + Affluent Primary Consumers - Generation Jones - Generation X
Fig. 6, SWOT Analysis, Own Image, 2014
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+ Limited Customer Base Geographically - Only 1 Store - Other Cities Such as Manchester and Birmingham have competitor stores
+ Competitors - Similar Department Stores - Harrods - Selfridges - Harvey Nichols - John Lewis + Need to Engage with New Primary Consumers before they Connect with one of Liberty’s Competitors + Inability to connect with Emerging Markets due to Brand Attitude of ‘Keeping Liberty Heritage’ + Economical Environment - Recession etc - High Price Point Stores are the First to Suffer - Shift in Consumer Behaviour.
PEST ANALYSIS + A pple V s A n d r o id - Leg a l Co n fl ic t B e twe e n Sa m s u n g a n d A pp l e O v e r S i m i la r i tie s i n So f t w a re - P a tte n t In fr i n g e m e n t I s s u e s + P riv a c y Is s u e s - B ig Da ta - Tr a c k i n g Cu s to m e r s in St o re - IB M P r e s e n c e Z o n e s - iBeacons - P u s h No tifi c a ti o n s + The a b o v e c o u l d h a v e P o l i t i c a l b e n e f i t s , allowin g fo r m o r e r e l ia b l e d a t a a n d inf orm a ti o n c o l le c tio n + C os t - R oa m i n g Ch a r g e s fo r F o re i g n Vi s i t o rs - A pp Co s ts
+ Sm a r t p h o n e s a d d t o ca r b o n footpri nts + T h e M a n u f a ct u r e o f Sm a r t phones in cr e a se s e n vir o n m e n t a l impact. + M icr o wa ve Po lu t io n wit h in Smartphones a n d Ta b le t s is p r o ve n t o h ave seri ous h e a lt h im p lica t io n s wh e n o ver used. + So m e o f t h e Tin So ld e r u sed w i thi n Sm a r t p h o n e ’s is m a n u f a ct ured i n Banka, a n I n d o isia n I sla n d . T h is manufacture p r o ce ss d e st r o ys t h e I sla n d natural r a in f o r e st e n vir o n m e n t . - De st r o yin g m a n y a n im a ls’ natural h a b it a t s - Pe o p le h a ve a st r o n g emoti on co n n e ct io n wit h a n yt hi ng to do w i th a n im a ls. + ‘F r e e Ph o n e ’ Co n t r a ct s e n courage w aste.
SO C IO PO L I T I CAL
+ ‘N ewn e s s ’ o f a P e r s o n s S m a rt p h o n e s a n d Tec h n o l o g y, A p p s e tc S y m b o l i s e a ‘ H i g h e r S t at u s ’ fo r G e n e r a ti o n Y a n d I - G e n e r a tio n Y a r e M o s t L i k e l y t o O w n a Sm a r tp h o n e ( a g e 2 0 - 3 0 y e a rs ) + Youn g A d u lts ( G e n e r a tio n Y & I ) - a re Mor e A c c e p tin g o f Ne w Te c h n o l o g i e s . - T h e y ’ v e G r o wn Up wi t h t h e I n t e rn e t a n d Vi d e o G a m e s e tc . - L i b e r ty Wo u ld Ne e d to Try a n d Ke e p Te c h n o l o g y Q u ite S i m p l e a n d Ea s i l y I n te g r a te d to A p p e a l M o re t o G e n e r a ti o n J o n e s a n d G e n e ra t i o n X a s to n o t p u t o ff a n d o v e rc o m p l i c a t + 84% o f S h o p p e r s u s e S m a rt p h o n e s f o r H e l p i n So m e Pa rt o f t h e P u r ch a se P roc ess wh e th e r th a t b e p re -p u rc h a s e - f o r re s e a rc h i n t o t h e p ro d u ct p r ice and s p e c i fic a tio n c o m p a r iso n , o r b ro w s i n g t o s e e i f a s t o re h a s a p h ysica l v ers ion o f a p r o d u c t s e e n o n l i n e .
Fig. 7, PEST Analysis, Own Image, 2014
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T E C H NO LO G I CAL
S OC I A L / CULT URA L i S S U ES
P ES T AN LY S IS : C U R RE N T S MART P HO N E T E C H NO LOGY
E NV I RO N M E N TA L
ENVI RO NM ENTAL I SSUES
PO LI T I CAL
P OLI TICA L / L E G A L / E CO N O M I C AL I SSU ES
T ECHNO L O G I CAL I SSUES - O n lin e Pr e se n ce - Co n t a ct le ss Pa ym e n t - Ta p t o Pa y - Au g m e n t e d Re a lit y - F in g e r p r in t Sca n n in g - Blu e t o o t h 4 . 1 - No m o r e ke ys ( t h e a b ilit y to unl ock d o o r s u sin g yo u r Sm a r t phone) + Bu r b e r r y RF I D Ta g s + F a cia l Re co g n it io n - Ag e Re co g n it io n - Sm ile Te ch n o lo g y + L o ca t io n - I BM Pr e se n ce Z o n e s - iBe a co n s + Pu sh No t if ica t io n s + T h e m a in id e a se e m s t o b e targeti ng co n su m e r s in d ivid u a lly wit h promoti ons t o p r o m p t p u r ch a se .
SECTION 2 18-
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LOYALTY This section explores what creates a successful partnership between a company and their consumer by analysing successful and unsuccessful loyalty schemes, then relating this back to those used by Liberty. Loyalty is creating a path of communication and a relationship between the companies and their customer and is key for any company. With it costing a business five to ten times more to acquire a new customer than it does to sell to an existing, loyal customer, with current customers spending an average of 67% more than a new one. (Peiguss, 2014) The Liberty brand has already begun to build on their existing relationship between their loyal customers with the use of the traditional and popular loyalty card scheme. The loyalty card is a scheme used by many companies, starting with the Tesco Clubcard – the hero of loyalty cards. With many people claiming that the ‘Clubcard is exclusively responsible for the success of Tesco.’ (Humpy, Hunt, Phillips, 2004) This is because the Clubcard enhances the customers’ experience by rewarding them for their loyalty and making them feel as though their opinion really matters; the customer feels important and is engaged as a stakeholder in the brand. (Humpy, Hunt, Phillips, 2004) The Clubcard has gone further than just Tesco, with their ‘Days Out Sale’, enabling families to have ‘fun days out for less’ (Tesco, 2014), with money off Spas and the opportunity to even collect points when you fill up your car. The Liberty loyalty card scheme makes you feel as if you are part of an exclusive club, with invites to special events and discounts. Rewarding the customer with a surprise such as a birthday gift makes them feel valued and important building on Liberty’s aim of creating a personalised experience and relationship with the customer. The loyalty card allows the consumer to receive one point for every one pound, with five pounds of vouchers when you spend one hundred and fifty pounds leading to twenty-five pounds worth of vouchers when you spend five hundred pounds. Members receive invitations to master classes and exclusive events, with access to insider tips and expert insights and the chance to win more points (Limited, 2014).
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When conducting our research we asked sales assistants from Liberty and the competitors how popular they felt their loyalty card scheme was, and how often they have people present them when purchasing products. The response was that 98% said their loyal customers presented their cards and were keen to collect points (Appendix D2). However with loyalty cards becoming the must have thing for any business and retailer consumer’s wallets and purses are bursting with numerous different cards; Tesco Clubcard, Boots Advantage card, Sainsbury Nectar card, House of Fraser’s card and many more. This means that on average each person has four traditional loyalty cards. (My Customer, 2014) Despite being keen to use and collect points, many of the participants we asked in Liberty and competing stores said that they often forgot to use the loyalty card if they weren’t prompted, meaning that loyalty cards need to be updated in becoming much more convenient to the consumer. Technological advancements have lead to many brands starting up Apps which hold your loyalty card on your phone (My Customer, 2014); this makes shopping and using your loyalty card quicker and easier for the consumer to access and allows them to keep track of points, deals and other account information. In a study conducted by MyCustomer.com, Consumers were found to be failing to claim their loyalty rewards; ‘loyalty card users have an average of £83 worth of redeemable points across their loyalty cards at any point in time, and UK shoppers cashed in on over £4billion worth of loyalty card points over the past year – yet £150million points remained unclaimed.’ (My Customer, 2014) This was due to the fact they simply did not know how to redeem them, and companies failed to alert them.
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An example of a bad loyalty scheme is Starbucks, with customers having to wait for their reward to be delivered in the post rather than using their Starbucks card in store to redeem their benefits. This creates a long waiting time and disappointed customers who aren’t rewarded for their continual loyalty to the brand. The Liberty loyalty scheme needs to take this on board and create a successful loyalty program that is beneficial and easy for the customer to use, ensuring the consumer receives the gift and in a convenient way. (Anon, 2011) With claims that retailers who do not embrace smartphones and technology into their loyalty schemes are in great danger of being left behind by those who do see the opportunity (My Customer, 2014); advances in technology will enable businesses to store and analyse customer data more efficiently through the loyalty card systems. This will enhance ‘the chances of customer retention’ (Lynch, 2014) and help the retailer create more of personal relationship with their customer- something that the Liberty brand can utilize well into their already developed and high standard customer service (My Customer, 2014).
Fig. 11, Starbucks Loyalty App, 2012
Loyalty (High)
Service
Service
(Bad)
(Good)
Loyalty (Low)
Fig. 11, Perceptual Map, Own Image, 2014
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Despite Liberty being a retailer where the shopping experience is heavily built on nostalgia and history it has tried to advance with technology via a current online presence that enables its customers to reach a quicker and easier way of shopping to buy online, whilst providing them with ways of checking their loyalty points and account information conveniently, either on the go or from the comforts of their own home. Liberty creates an experience that is unique in modern society, they want their customers to feel comfortable in store and treat it like their home (Appendix D2) They value traditional methods of customer service, building personal relationships with each customer throughout their time in-store up to the point of purchase and exit. Great service is key to loyalty and creating a relationship between the retailer and the consumer, as you can see in the perceptual map to the left, some retailers fail to provide a good service, meaning that customers do not want to return making the store lack a loyal customer base.
Fig. 13, Loyalty Loop, Own Image, 2014
Customer loyalty is key for every business. Success within customer loyalty lies in each companies’ own distinctive approach and ability to adopt new ideas. (Lynch, 2014) Some businesses do this better than others, a good example being British Airways. They give a unique experience by allowing the customer to tailor their own – by choosing their gourmet meals and inflight entertainment. (Lynch, 2014) Another example would be American Express, who successfully link loyalty with their online presence. With a huge partner base worldwide their recent Twitter campaign rewarded customers for tweeting about them, linking discounts with the Twitter ‘hashtags’; ‘cardholders have redeemed over $2,00,000 in rewards.’ (Peiguss, 2014) The use of social media in this campaign has the ability to approach a wide number of consumers quickly, something Liberty can explore in order to target new audiences easily. Loyalty is key for every business in succeeding, with research showing that after purchase the consumer enters into an open-ended relationship with the brand based on whether they have had a good or bad in store experience (Edelman, 2010), which is shown in the loyalty loop above. Our idea for the advancements of the Liberty loyalty scheme, will work towards eliminating the stages of consideration and evaluation by making the shopping experience more convenient, consequently creating a personal relationship and pleasant experience for the consumer, creating new loyal customers as well as rewarding the current.
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THE CONSUMER This section of the report will outline the current Liberty consumer and how gaining an understanding on this has helped to determine what is needed to be achieved within our idea in order to create a good in store experience suited to their wants and needs, and ultimately increasing loyalty to the store.
A consumers purchase decision first starts with the recognition of need for a product. This could be derived from a literal need; such as needing a new pan when the old one has broken, but most commonly the sensation of need is derived from ‘the discrepancy between what they (the consumer) believe is lacking and what they desire.’ (Posner, 2011) Once this ‘need’ has been established, most consumers will likely try to identify a variety of options, subconsciously weighing up the advantages and disadvantages as they go. This could be achieved by browsing within physical stores or searching for relevant products and information online, within books and magazines or asking opinions of friends and family - this stage will generally lead to a decision of whether or not to purchase the product, but does not account for impulse buying (See Maslows Hierarchy to the right_ In this case the job for Liberty is to implant this need for a product subconsciously within the customers mind; via an overall sensory retail experience. Starting with the initial factors of attraction to the store; online presence, loyalty and store exterior before allowing in-store visual merchandising, customer service, ambience (Hines and Bruce, 2008) and most importantly in terms of this report technology to aid the purchase decision making process in its favour.
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Basic Life Needs. Food, Water, Sleep, Sex
Physical & Psychological Safety. Security and Protection. Clothing for warmth.
Relationship, acceptance, family, peer group, work group. Dressing to fit into specific style tribes.
SAF E T Y & P RO T E C T IO N
P HY S IO LO G I CA L
SOC IAL B E LO NG I N G
S E LF ES T E E M
SELF A C T UA L I S AT I O N
Status, Acheivement, Prestige, Level of Responsibility. Consumer may choose status brands or designer clothing to signify self importance or position. Respect of others.
Fulfilling own potential. Consumer may purchase equipment / clothing for travel / hobbies. Individual style created to express creativity & sense of freedom.
Fig. 14, Maslows Hierarchy of Needs, Own Image, 2014
Our assumptions of the typical Liberty consumer consisted of someone in Generation X, with a busy lifestyle and a family. Born between 1965 and 1976, the self sufficient personalities of this generation means they do not want to be pressured into making purchases but will always ask for assistance where needed (Kim, 2007). An article on Mintel in 2011 entitled ‘Consumer Attitudes Towards Luxury Brands in the UK’, reveals that luxury department stores are most popular amongst under 35’s with children. They are part of the generation who ‘treat time as a premium commodity’ and ‘use time saving gadgets that make their lives easier.’ (Kim, 2007). A key feature of department stores is that everything is under one roof, therefore making it highly convenient for Generation X. For Generation X buying something within the luxury sector is a form of reward and indulgence through self-motivated purchases. Within our big idea we want to create something where the Generation X consumer can get more out of their shopping experience through a positive in store experience. Liberty needs to address the need for Generation X to have a reassurance from the service that the staff provides within store.
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We sought after answers that would give us insight into consumers shopping behaviour with regards to smartphones and loyalty schemes and how we could enhance their in-store experience using both these elements. From covert observations of consumers in both Nottingham and London we can infer from the results that people often have their smartphone out whilst walking around a store or shopping centre. Our assumptions led us to believe that the reasoning behind this would be for getting advice on a product, for comfort purposes or maybe having a busy schedule and using it mostly for communication. Therefore we questioned sales advisors on their surveillance of customers’ use of their smartphones. With regards to consumer behaviour and loyalty, if customers are satisfied with their experience they are more likely to be return to that store. (Smith and Wheeler, 2002). If so many customers have their smartphone out in a store such as Liberty, it is curious as to what they would be using it for. Therefore we wanted to back up our assumptions with primary research. We asked consumers the question, ‘What do you use your smartphone for whilst shopping?’ and prompted replies by giving the consumer options such as texting, making a call, price comparison, taking photographs or asking people for advice on a possible purchase. Responses from Liberty’s current consumer, Generation X, revealed that they mostly use their smartphone whilst shopping to gather information on the product, get advice from others and to make price comparisons. Therefore as there are many possible reasons for them to have their smartphone out during their time in the store. Our big idea will be suitable for the current consumer and upcoming Liberty consumer.
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Through our big idea we want to give Liberty the ability to reach a new consumer. Generation Y are the current emerging adults of our world with the capability of being profitable to institutions such as Liberty London. The older segment of this generation, born between 1977 and 1993 are technology savvy, up to date and have grown up in the most recent digital revolution. (Kim, 2007) When surveying Generation Y, it was bought to our attention that these people are more likely to have their phone out whilst shopping for comfort reasons, meaning they will just hold it in their hand, even when they are not using it. This was backed up with secondary research when an article revealed “with two out of five [saying] ‘they would feel anxious, like a part of me is missing’ if they couldn’t use their smartphones to stay connected.” (Freeman, 2012). Social media is an every day occurrence; their lives are saturated by the multiple platforms available to them. The phenomenon is now used more regularly via smartphones than on a traditional computer or laptop. The convenience of communication allows them to engage with friends and acquaintances. This makes it possible for them to make recommendations and ‘share’ things, which in turn could create a wider customer base for Liberty. However they are not the only ones who wish to have this constant link with the rest of their world. The forgotten generation, Generation C are made up of individuals aged eighteen to thirty four years old who have a desire to stay digitally connected, not just through the use of smartphones but also through tablets, social media, blogs, online videos and television. (Fox, 2012) When it comes to all things digital, Generation C is saturated in a world of technology and options. This gives businesses such as Liberty London the chance to be experimental, daring and gain a new following in loyal customers and engage this overlooked consumer.
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TECHNOLOGY
Smartphone technology is continually diffusing into a seamless and integral part of our everyday lives. Whether yours be Apple or Android, over 70% of the UK now own and use a Smartphone; (Styles, 2014) but how are people using them? According to O2, we now use our phones for longer per day surfing the Internet than utilizing any other feature, including making calls. (O2 UK, 2012) This is directly reflected into the technological advances seen within retail, no longer do we rely on either shopping online or in store but we combine the features available on our Smartphone to give us the optimum shopping experience; browsing as we go to find the best deal. As ‘Shoppers who use there mobile in store are more likely to spend more’ (Grunewald, 2013) brands are using this to there advantage. A prime example of new technological advancements brands are adopting is the IBM Presence Zones. This technology tracks the customers’ location as they navigate the retail environment recording how long they spend in each area of the store, even down to what products they’re looking at. This allows the retailer to detect patterns and optimize visual merchandising and store layouts and uses a combination of in store WIFI and location sensors along with the customers Smartphone. After the customer ‘opts in’, the retailer has the opportunity to send targeted promotional information and offers in an attempt to enhance both the retail experience and customer satisfaction (Whitler, 2014) This kind of technology is similar to the iBeacon, a technology created by Apple which allows mobile apps for both Apple and Android devices to receive signals from the Beacons delivering hyper-contextual content to users based on their location (iBeacon Insider, n.d.).
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Fig. 16, Burberry Regent Street, 2012
Apps have become an essential tool in terms of mobile marketing. The ability to analyse behaviours and strategically target consumers with relevant contextual content via Push Notifications has developed opportunities for brands to connect and create personal relationships with both current and potential consumers (Kolodziej, 2014). As with Presence Zones technology, the key with Push Notifications is getting customers to ‘opt-in’ in the first place; after this essential initial factor Push Notifications are proven to increase engagement. According to push provider Xtify - this kind of marketing runs with ‘30-60% open rates and 4-10% interaction rates (with spikes as high as 40%)’, compared to an ‘average open rate of 20% and click through rate of 5.4%’ relevant for email marketing (Wilcox, 2012). Both of these kinds of technology are still at a state of immaturity, furthering the fear of accessibility to private phone data (See PEST analysis page 17) increasing the potential of rejection by the masses but still provides the potential for allowing brands to target individual with specifically targeted information, tailoring an experience to them, making every persons in store journey unique.
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QR coding is now being used in retail to give the consumer a more in depth background to the garment. ‘It is one additional technique retailers can use to entice people to go into their stores or online to get more information that can potentially turn into a sale.’ (Shen in Cotton Incorporated, 2013) Additionally, the luxury fashion brand Burberry are arguably at the forefront of in store experience technology use Radio Frequency Identification (or RFID Technology) in order to identify a specific product using a radio signal. RFID is embedded either into the physical garment, or within the product swing tag and was used initially to simplify and assist with stock quality control systems, but has now been introduced into some stores, such as the London Regent Street Flagship to enhance consumer experience. (Appendix A1) In this case RFID detects each specific product a customer looks at and alters the in store multimedia display accordingly allowing the consumer to interpret content relevant to them. (Burberry, n.d.) ‘Augmented reality (AR) is cutting-edge technology that allows for a digitally enhanced view of the real world, connecting you with more meaningful content in your everyday life. With the camera and sensors in a Smartphone or Tablet, AR adds layers of digital information – videos, photos, sounds – directly on top of items in the world around us.’ (Layar, 2014) Liberty London could use this to influence their in-store experience to enable the customer to enhance reality through the use of technology.
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Facial Recognition technology works on the basis of interpreting and analysing a person’s reaction to a specific stimulus, via the recognition of different facial expressions and movements. This kind of technology can also recognize a persons age - a feature that could be used within in store environments to not only analyse different consumers, but potentially personalise multimedia displays; making them more relevant for the perceiver (Burberry, N.D) and has in recent years been adapted for use within Smartphones and Tablets. A more specific case study for Facial Recognition Technology; ‘Smile Technology’ works on the basis of interpreting a viewer’s reaction to content viewed on a television via facial recognition technology in an aim to re-asses engagement with that specific content. (John Lewis Exhibition, 2014) This same technology could be adapted for use within a retail space further enhancing the customer engagement process. It’s proven that the stimulation of our senses allows us to create emotional connections - a primary example being the link between a specific smell or fragrance (such as perfume) and a specific memory. (Van Toller and Dodd, 1992) These emotional connections create the potential for a brand to increase loyalty and consumer following further than ever before. The key is for brands to adapt new technologies (such as the ones outlined above) in order to create a multi-sensory and seemingly personalized environment; however it is important to remember the suitability and acceptance of the technologies used in terms of the brand values, ensuring maximum engagement with the primary consumers.
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THE BIG IDEA This section will outline the loyalty scheme app that will be implemented into the Liberty London store. Developed using our insights on the brands core values, insights from the consumer, existing loyalty schemes and new emerging technologies that we have discussed previously. Using new technologies in combination with smartphones we have created an app and instore experience called Liberty Connect. The name Liberty Connect highlights the apps main focus of creating a community and bond between the consumer and the Liberty brand. In the 2013 Liberty of London documentary, Ed Burstall (managing director), describes his staff as having, ‘an ability to read people.’ (Channel 4, 2013) The Liberty staff takes pride in the knowledge that they have of the products and creating a personalised and honest experience, which in turn creates a connection with the consumer, thus rewarding the brand with their loyalty. The apps main focus is to harness the existing success the brand has in making connections with the consumer, adding features which will edit the consumer journey, making it a much more convenient and personal experience for them. The Liberty Connect app can be utilized throughout the consumer decision journey, creating a unique experience before, during and after purchase. The main basis of the app is the integration of the current Liberty loyalty card scheme into the smartphone. IBM conducted a study in 2004, in which they found that consumers were getting tired of the physical loyalty card. (Kim, Forney and Sullivan, 2007) This was backed up by our own consumer research in which 100% of participants said that they owned loyalty cards for many different stores- but always forgot to use them. The Liberty Connect app would react to this research, making the loyalty scheme much more convenient and accessible for the consumer. The app would give the consumer instant access to their points score on the move and show them the rewards they can work towards and achieve when taking part in the instore experience.
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Fig. 19, Exterior Window Visual Merchandising, 2014
In order to take part and earn points, the consumer will have to download Liberty Connect prior to visiting. In order to achieve this, the app would be promoted through online social media platforms Facebook, Twitter and Instagram in the form of shareable adverts describing the instore experience they can have if they download (Appendix A2). The adverts would entice the consumer into downloading and also sharing the adverts to friends in order to be entered into a live competition for that month. With the app downloaded to the customers smartphone they will then make the journey to the store in order to take part in the Liberty Connect experience and to start earning loyalty points. As the customer approaches the store, the Liberty Connect experience will begin at the digitalised window displays. The displays will pioneer the newest in technologies, including facial recognition software, detecting the age and gender of the consumer approaching and responding to this by displaying an advert that is specifically targeted to that individual. The display would also incorporate smile technology, rewarding the consumers positive reaction to the displays with loyalty points and the option to post a live picture onto social media platforms if they have the app downloaded. The sharing of live pictures would continue the circulation of the Liberty Connect promotional material across networking sites as more and more consumers visit the store and take their own memoir photograph.
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On entering the store the shopper is prompted to tap their smartphone against the welcome point, logging their entrance into the store and also informing the staff of their arrival. PRS research discovered that roughly half of those who use their smartphone when shopping are using them to check prices, find promotions, read product reviews or get product information (Prsresearch.com, 2014). This was backed up by the consumer questionnaires we conducted in which 40% of participants stated that one of the main uses for a phone in store was to gain more knowledge on the product and compare prices. The Liberty connect app responds to this by allowing the customer the ability to scan QR codes on products, which will give them full access to product specifications, reviews from other Liberty Connect users and instore price comparisons helping to solve consumers in store choice trauma. Liberty Connect will also allow the consumer to add items they like to a ‘wishlist’ creating a personal memory bank of items, which can be reviewed when the customer leaves the store, or can be shared with others online as gift ideas. When conducting our questionnaire 54% of participants said they would rather approach a staff member for help than be approached beforehand. The Liberty Connect app takes this into account offering an option for the user to request a specific member of staff using the app. Barbara Barclay, general manager of North America for Tobii discusses the future of the consumer and staff bond, stating that, ‘staff will know who you are and what your last shopping experience was. They will know where you’re looking on the shelf.’ (Mercurynews.com, 2014) The Liberty Connect app harnesses this information and uses collected data from the consumer smartphone of recent purchase history, their scanned QR code log and wishlist and also the consumer journey they have taken. This information would then be sent to the staff’s handheld tablets allowing them access to further knowledge on the consumer in front of them. This would give them the ability to upsell and cross-sell items and provide personal recommendations, creating an experience specifically tailored to the consumer in front of them.
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Fig. 20, App Homescreen, 2014
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Fig. 22, Staff Tablet, Product Information, 2014
Fig. 23, Staff Tablet, Video Tutorials, 2014
Examining by touch and trial are important strategies in getting consumer involved with a product (Underhill, 1999). The next step to the app combines the virtual with reality by providing a feature, which uses augmented reality technology to show videos of the product within a real-life setting. This would allow the consumer to touch, feel and analyse the product in front of them but to also view the post purchase setting- helping them to build more of a confidence in buying. The videos will also have the option for the user to view the products life cycle from manufacture through to its arrival at the Liberty store, giving them information on the heritage, quality and designers background. These videos can be accessed by the user on the scanning of the QR coding on a product during their personal journey or by a staff member when in a one-on-one interaction in order to influence a sale.
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In terms of the stores visual merchandising, the displays in the interior will reflect the exterior previously discussed. Full length digitalised screens will wrap the store transitioning between audio visual displays that will again be targeted for that specific consumer using age/facial recognition, wishlist data and previous purchase history. The visual displays will be located in areas of the store that we have identified through consumer observation as being the Liberty store hot spots such as stairwells, lifts, fitting rooms.
Fig. 24, Instore Digital Displays, 2014
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The after purchase aspects to the app would use push notifications to provide personalised offers for the user, using the data collected from previous visits to entice them to return back. The app would feature a live reviewing system prompting a buyer to review the item they have bought in return for loyalty rewards. This would provide users with an emotional validation for what they are buying on their next visit, continuing the loyalty loop. The importance of creating a sensual experience within retail is becoming more and more prominent. As we become submerged within a technological age, brands face constant competition in creating a unique experience, making it very important that a brand stands out from the crowd. Martin Lindstrom stated in Brand Sense (2010) that ‘the more positive the synergy that’s established between our senses, the stronger the connection made between the sender and the receiver.’ The ‘Liberty connect’ app gives the Liberty brand the ability to create an enjoyable, unique experience that involves creating a bond between them and the consumer this means that the consider and evaluate stages of the consumer decision journey will be eliminated, keeping the customer loyal and therefore creating more revenue for the Liberty brand.
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CONCLUSION
A good all round experience is what keeps customers loyal and enthusiastic to return. Shoppers expect a lot from in-store environments, otherwise they are likely to go elsewhere (Samsung, 2013). Today one to one intimacy is lacking. The traditional, honest customer service that consumers crave is something Liberty still offer. The Liberty Connect app will enhance this experience, whilst updating the service to be quicker and more efficient through the use of technology. By allowing customers to be interactive whilst shopping, it will ultimately increase sales. Our primary research revealed that Liberty want their customers to feel as though their store is their home, their wardrobe, their sanctuary; with Liberty Connect will enhancing this experience whilst boosting loyalty and combining technology.
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SECTION 4 43-
ILLUSTRATIONS
Fig 1. All About London, 2010. Christmas Windows 2010 London Harvey Nichols. Available at http://www.all-about-london.com/2010/11/christmas-windows-2010-london-harvey.html. [Accessed 29 May 2014]. [Photograph]. Fig 2. Trend VM Blog, 2014. Harvey Nichols London VM display. Available at http://trendvm.blogspot.co.uk. [Accessed 29 May 2014]. [Photograph]. Fig 3. I am Architect, 2003. Selfridges Birmingham Bullring. Available at http://www.iam-architect.com/bullring-shopping-centre/. [Accessed 20 May 2014]. [Photograph]. Fig 4. Family Vacation Ideas, 2014. Harrods. Available at http://family-vacation-ideas.com/travel-photo-gallery/. [Accessed 29 May 2014]. [Photograph]. Fig 5. Own Image, 2014. Fragrance Labs Selfridges London. [Photograph]. Fig 6. Own Image, 2014. SWOT Analysis. [Chart]. Fig 7. Own Image, 2014. PEST Analysis. [Chart]. Fig 8. A Spoonful of Sugar, 2012. Loyalty Card Wallet. Available at http://aspoonfulofsugardesigns.com/2012/02/loyalty-card-wallet/. [Accessed 29 May 2014]. [Photograph]. Fig 9. Entrepreneur Sky, 2014. Loyalty App. Available at http://entrepreneursky.com/loyalty-app-loyalzoo-succeeds-crowdfunding-goal-24hrsseedrs/. [Accessed 29 May 2014]. [Photograph]. Fig 10. Couture Net, 2013. Fashion Blog: The Best Loyalty Cards: Liberty London. Available at http://couturenet.blogspot.co.uk/2013/02/fashion-blog-best-loyalty-cards-liberty.html. [Accessed 29 May 2014]. [Photograph]. Fig 11. Lunch Business, 2012. Starbucks gets Loyal With It’s Customers. Available at http://lunchbusiness.co.uk/starbucks-gets-loyal-its-customers. [Accessed 29 May 29 2014]. [Photograph]. Fig 12. Own Image, 2014. Perceptual Map. [Chart]. Fig 13. Own Image, 2014. Our loyalty loop. [Infographic]. Fig 14. Own Image, 2014. Our Maslow’s Hierarchy of Needs diagram. [Infographic]. Fig 15. UIEvolution, 2014. iBeacon. Available at http://www.uievolution.com/news/what-is-ibeacon-and-what-is-it-doing-at-american-eagle/. [Accessed 29 May 2014]. [Diagram] Fig 16. Vogue, 2012. Burberry Opens Regent Street Flagship. Available at http://www.vogue.co.uk/news/2012/09/13/burberry-regent-street-flagship-opens. [Accessed 29 May 2014]. [Photograph].
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ILLUSTRATIONS Fig 17. Tech Clicko, 2014. QR scanning smartphone. Available at http://www.techclicko.com/wp-content/uploads/2014/02/Teclicko-Qr-code.jpg. [Accessed 29 May 2014]. [Photograph]. Fig 18. Photobucket, 2014. Facial Recognition. Available at http://s290.photobucket.com/user/eddiebeargtst/media/biometrics/facialrecognition.jpg. html. [Accessed 29 May 2014]. [Photograph] Fig 19. Own Image, 2014. Digital Liberty London Window Display. [Mock ups]. Fig 20. Own Image, 2014. Liberty London smartphone app, home screen. [Mock ups]. Fig 21. Own Image, 2014. Liberty London smartphone app, menu screen. [Mock ups]. Fig 22. Own Image, 2014. Liberty London staff tablet product information. [Mock ups]. Fig 23. Own Image, 2014. Liberty London staff tablet video tutorials. [Mock ups]. Fig 24. Own Image, 2014. Digital Liberty London In-store Display. [Mock ups].
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Fitzsimmons, C. (2013). Improve Your Loyalty Program: ‘Surprise and Delight’ Your Customers. [online] Available at: http://www.brw.com.au/p/marketing/improve_your_loyalty_program_surprise_upcMGtxosZefKo63eMh1mJ [Accessed 26 May. 2014]. Forte Consultancy. (2011). Loyalty Programs Gone Wrong – Ten Common Mistakes to Avoid. [Blog] Forte Consultancy. Available at: http://forteconsultancy.wordpress.com/2011/02/28/loyalty-programs-gone-wrong-–-ten-common-mistakes-to-avoid/ [Accessed 25 May. 2014]. Grunewald, A. (2013). Understanding Smartphone use in Stores: Shoppers Who Use Mobile More, Spend More In Store. [Blog] Inside Adwords. Available at: http://adwords.blogspot.co.uk/2013/05/understanding-smartphone-use-in-stores.html [Accessed 19 May. 2014]. Grunenberg, C., and Hollein, M., eds., (2002). Shopping. Germany: Hatje Cantz Publishers. Harvard Business Review, (2014). How People Really Use Mobile. [online] Available at: http://hbr.org/2013/01/how-people-really-use-mobile/ar/1 [Accessed 19 May. 2014]. Hines, T. and Bruce, M. (2008). Fashion marketing. 2nd ed. Oxford: Butterworth-Heinemann, p.156. Henley, J. (2010). Teenagers and Technology: ‘I’d rather give up my kidney than my phone’. [online] the Guardian. Available at: http://www.theguardian.com/lifeandstyle/2010/jul/16/teenagers-mobiles-facebook-social-networking [Accessed 26 May. 2014]. Horton, C. and Plus, C. (2014). How eCommerce, Augmented & Virtual Reality Will Redefine the Retail Experience. [online] Business 2 Community. Available at: http://www.business2community.com/online-marketing/ecommerce-augmented-virtual-reality-will-redefine-retail-experience-0835194#PT6i3bdDM8meuPSs.99 [Accessed 6 May. 2014]. Humby, C., Hunt, T. and Phillips, T. (2004). Scoring Points. 1st ed. Sterling, VA: Kogan Page. iBeacon Insider, (n.d.). What is iBeacon? A Guide to iBeacons. [online] Available at: http://www.ibeacon.com/what-is-ibeacon-a-guide-to-beacons/ [Accessed 25 May. 2014]. Incorporated, C. (2013). Retailers Enrich Consumer Experience With QR Codes. Women’s Wear Daily. [online] Available at: http://www.wwd.com/ markets-news/textiles/retailers-enrich-consumer-experience-with-qr-codes-7087963 [Accessed 28 May. 2014].
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BIBLIOGRAPHY
Instore-engagement-conference.co.uk, (2014). In-Store Engagement Conference. [online] Available at: http://www.instore-engagement-conference. co.uk [Accessed 27 May. 2014]. John Lewis, 2014. 150 Years of John Lewis. Oxford Street, London. 3rd May-Present. [exhibition catalogue]. Kim, Y., Forney, J. and Sullivan, P. (2007). Experiential Retailing. 1st ed. New York: Fairchild. p. 38, 59. Kolodziej, C. (2014). Push Mobile Marketing -- App Notifications Vs. Messaging. [online] Marketing Land. Available at: http://marketingland.com/ welcome-to-the-world-of-push-mobile-marketing-app-notifications-vs-messaging-70083 [Accessed 26 May. 2014]. Layar, (2014). What is Augmented Reality | Layar. [online] Available at: https://www.layar.com/augmented-reality/ [Accessed 22 May. 2014]. Limited, B. (2014). Liberty Loyalty Card. [online] Liberty.co.uk. Available at: http://www.liberty.co.uk/loyalty_card/article/fcp-content [Accessed 27 May. 2014]. Lindstrรถm, M. (2005). Brand Sense. 1st ed. New York: Free Press. p. 103. Lynch, J. (1995). Customer Loyalty and Success. 1st ed. Basingstoke: Macmillan Business. Marketingweek.co.uk, (2014). Digital Personalisation: How Intimate Should Brands Get? [online] Available at: http://www.marketingweek.co.uk/analysis/digital-personalisation-how-intimate-should-brands-get/4010000.article [Accessed 5 May. 2014]. Mashable, (2012). Burberry to Open Digitally Integrated Store in London. [online] Available at: http://mashable.com/2012/09/13/burberry-regent-street-store/ [Accessed 14 May. 2014]. Mashable, (2012). Managing Millennials: Why Gen Y Will Be Running the Country by 2020 [INFOGRAPHIC]. [online] Available at: http://mashable. com/2012/06/28/millennials-work-jobs/ [Accessed 26 May. 2014]. Mashable, (2014). The Smart Way to Shrink Your Retail Footprint. [online] Available at: http://mashable.com/2014/05/09/shrinking-retail-space/ [Accessed 6 May. 2014].
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BIBLIOGRAPHY
Mashable, (2012). Why Smartphone-Obsessed Generation Y Can’t Put Down Their Phones. [online] Available at: http://mashable.com/2012/12/12/ martphone-obsessed-generation-y/ [Accessed 26 May. 2014]. Mercury News, (2014). Virtual Reality Transforms Real-life Shopping in Stores. [online] Available at: http://www.mercurynews.com/business/ ci_24820288/virtual-reality-transforms-real-life-shopping-stores [Accessed 27 May. 2014]. Mintel, (2011). Consumer Attitudes Towards Luxury Brands. [online]. Available via: Mintel. [Accessed 13 May 2014] Morgan, T. (2008). Visual Merchandising. 1st ed. London: Laurence King Pub. My Customer, (2013). Selfridges: The hundred-year-old marketing lessons that still matter. [online] Available at: http://www.mycustomer.com/topic/ marketing/hundred-year-old-marketing-lessons-still-matter/162936 [Accessed 26 May. 2014]. My Customer, (2013). Smartphones: The Next Generation of Customer Loyalty Cards? [online] Available at: http://www.mycustomer.com/news/ smartphones-next-generation-customer-loyalty-cards [Accessed 29 Apr. 2014]. O2 UK, (2012). Making Calls has Become Fifth Most Frequent Use for a Smartphone for Newly-Networked Generation of Users. [online] Available at: http://news.o2.co.uk/?press-release=making-calls-has-become-fifth-most-frequent-use-for-a-smartphone-for-newly-networked-generation-of-users [Accessed 26 May. 2014]. OPEN Forum, (2013). 10 Cool Apps to Boost Customer Loyalty. [online] Available at: https://www.americanexpress.com/us/small-business/openforum/articles/10-cool-mobile-apps-that-increase-customer-loyalty/ [Accessed 27 May. 2014]. Paharia, R. (2013). Loyalty 3.0. 1st ed. New York: McGraw-Hill. Pantano, E. and Laria, G. (2012). Innovation in Retail Process: From Consumers’ Experience to Immersive Store Design. Journal of technology management & amp; innovation, [online] 7(3), pp.198-206. Available at: http://www.scielo.cl/scielo.php?pid=S0718-27242012000300016&script=sci_arttext [Accessed 24 May. 2014].
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BIBLIOGRAPHY
Peiguss, K. (2014). 7 Customer Loyalty Programs That Actually Add Value. [online] Blog.hubspot.com. Available at: http://blog.hubspot.com/blog/ tabid/6307/bid/31990/7-Customer-Loyalty-Programs-That-Actually-Add-Value.aspx [Accessed 29 Apr. 2014]. Pevsner, N., Cherry, B. and Newman, J. (1986). The best buildings of England. 1st ed. Harmondsworth, Middlesex, England: Viking. Posner, H. (2011). Marketing Fashion. 1st ed. London: Laurence King Publications, p.117. PRS Research, (2014). ‘Bricks and Clicks’ Study Examines How Shoppers Use QR Codes in Retail Settings - Perception Research Services International. [online] Available at: http://www.prsresearch.com/prs-insights/article/bricks-and-clicks-study-examines-how-shoppers-use-qr-codes-inretail-settings/ [Accessed 27 May. 2014]. QR Codes in Retail, (2014). QR Codes in Retail – Creating QR Codes for QR Code Marketing. [online] Available at: http://www.qrcodesinretail.com [Accessed 3 May. 2014]. Rath, P., Petrizzi, R. and Gill, P. (2012). Marketing Fashion. 1st ed. New York: Fairchild Books. Rath, P. (2008). The Why of the Buy. 1st ed. New York: Fairchild Books. Reichheld, F. and Teal, T. (1996). The Loyalty Effect. 1st ed. Boston, Mass.: Harvard Business School Press. Reichheld, F. (2001). Loyalty rules!. 1st ed. Boston: Harvard Business School Press. Rigby, C. (2013). John Lewis Trials New In-Store Technologies. [online] Internet Retailing. Available at: http://internetretailing.net/2013/12/john-lewis-trials-new-in-store-technologies/ [Accessed 27 May. 2014]. Samsung Electronics Ltd., (2013). A New Way To Engage With Shoppers [online]. Available via: Samsung Electronics LTD. [Accessed 13 May 2014] Scammel-Katz, S. (2012). The Art of Shopping. 1st ed. London: LID Publishing. Smith, S. and Wheeler, J. (2002). Managing the Customer Experience. 1st ed. London: Financial Times Prentice Hall. p.
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Stamp Me Loyalty Card App, (2012). Loyalty Card App, Loyalty Program, Loyalty Card, Loyalty App, iPhone. [online] Available at: http://stampme. com [Accessed 27 May. 2014]. Styles, K. (2014). 7 in 10 People in the UK Now Own a Smartphone. [online] Mobilemarketingmagazine.com. Available at: http://mobilemarketingmagazine.com/7-10-people-uk-now-own-smartphone/ [Accessed 24 May. 2014]. Stylus, (2014). Immersive Brand Spaces. [online] Available at: http://www.stylus.com/qjjljb [Accessed 7 May. 2014]. Tesco, (2014). Clubcard. [online] Tesco.com. [online] Available at: http://www.tesco.com/clubcard/ [Accessed 27 May. 2014]. The Guardian, (2013). Luxury Retailers Leading the Way with In-Store Technology. [online] Available at: http://www.theguardian.com/media-network/ media-network-blog/2013/jan/15/luxury-retailers-in-store-tech [Accessed 27 May. 2014]. The Guardian, (2014). Smartphones [online] Available at: http://www.theguardian.com/technology/smartphones [Accessed 13 May. 2014]. Tuccille, J. (2013). Smile For the Cop With the Smartphone and the Facial Recognition Software. [online] Reason.com. Available at: http://reason. com/blog/2013/11/08/smile-for-the-cop-with-the-smartphone-an [Accessed 13 May. 2014]. Tyagi, C. and Kumar, A. (2004). Consumer Behaviour. 1st ed. New Delhi: Atlantic Publishers and Distributors. Underhill, P. (1999). Why We Buy. 1st ed. New York: Simon & Schuster, p.171,172. Van Toller, S. and Dodd, G. (1992). Fragrance. 1st ed. London: Elsevier Applied Science, p.197. Vista Retail, (2014). Vista Retail. [online] Available at: http://www.vistasupport.com/news/pt_new_technologies_to_enhance_in-store_experience [Accessed 10 May. 2014]. Watkinson, M. (2012). The Ten Principles Behind Great Customer Experiences. 1st ed. Harlow: Financial Times.
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Whitler, K. (2014). IBM’s New ‘Presence Zones’ Help Retailers Transform In-Store Experience. [online] Forbes. Available at: http://www.forbes.com/ sites/kimberlywhitler/2014/01/09/ibms-new-presence-zones-help-retailers-transform-in-store-experience/ [Accessed 26 May. 2014]. Wilcox, M. (2012). Do Push Notifications Increase Engagement? [online] Developer Economics. Available at: http://www.developereconomics.com/ do-push-notifications-increase-engagement/ [Accessed 18 May. 2014]. Wolpin, S. (2014). 7 New Smartphone Features that Will Help Define Your Future. [online] CNN. Available at: http://edition.cnn.com/2014/02/23/ business/future-smartphone-mobile-world-congress/ [Accessed 16 May. 2014].
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APPENDIX A1 BURBERRY CASE STUDY
Burberry had the vision to be the first company who is fully digitalize and also built a social enterprise. (ahrendts and Bailey) They focus on digital natives who engaged and passionate in technology. Having a connection with the social media, mobile and physical, customer can get the feeling of the brand and engage with the brand everywhere when they access to their devices. In 2012, Burberry opened a flagship in London on Regent Street, which provides an innovative in-store experience to customer. Bringing the online shopping environment and combining the digital and physical experience to store are the aim of the store. The CEO of Burberry, Angela Aherndts said “Burberry Regent Street brings our digital world to life in a physical space for the first time, where customers can experience every facet of the brand through immersive multimedia content exactly as they do online.� Customers can experience six major services, which provides in the flagship. Burberry Bespoke is one of the six services. It is a program which customers can design their personal trench coat through the screen in-store. Also there are interactive mirrors that can transform into personalized screens, which shows designs from the catwalk. Global events screened life, digitally enabled cultural space, choreographed audiovisual take-overs and celebration of British design and craftsmanship are the following experience. They are all about interactive, customization and personalization through massive screens, sound and visual effect which created an environment like walking into Burberry website. Even if people who never bought a single item from Burberry or gone to Burberry’s store, they will know what garment have been used for the trench coat or what is the background of Burberry through experiencing the multimedia content after they visit the store. The advantages of the digital in-store experience are everything being fast, flexible and dynamic in store also it is more convenient for customers to know all the details of the products. Furthermore, when people go into the store, they are not only doing shopping but also experiencing different sensory and entertaining devices or programs, which they can learn more and explore more in store. However, a coin has two sides, although some people may think the whole experience is more convenient for them and bring enjoyment to them when they visit the store, some may think the store is emotionless because they want to speak to the staff and get their advices rather than facing the screens. In the past, customer and staff are very interact, they chatted about their work, school and life, staff can know what fit the customer through chatting but nowadays people just doing online shopping at home, seeing reviews from the other customers because staff is not interact with them anymore. The suggestion is they can create a live messenger which customer can chat with the staff when they login to the Burberry app or through the devices in store. Also, they can adopt from Apple store, customers can ask for assistance from the iPad then they can send a staff to help. Digitalize is the trend of retailing but they should not too depend on the devices because communication is the most important thing of selling.
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APPENDIX A2 SOCIAL MEDIA MOCK UPS
Burberry had the vision to be the first company who is fully digitalize and also built a social enterprise. (ahrendts and Bailey) They focus on digital natives who engaged and passionate in technology. Having a connection with the social media, mobile and physical, customer can get the feeling of the brand and engage with the brand everywhere when they access to their devices. In 2012, Burberry opened a flagship in London on Regent Street, which provides an innovative in-store experience to customer. Bringing the online shopping environment and combining the digital and physical experience to store are the aim of the store. The CEO of Burberry, Angela Aherndts said “Burberry Regent Street brings our digital world to life in a physical space for the first time, where customers can experience every facet of the brand through immersive multimedia content exactly as they do online.� Customers can experience six major services, which provides in the flagship. Burberry Bespoke is one of the six services. It is a program which customers can design their personal trench coat through the screen in-store. Also there are interactive mirrors that can transform into personalized screens, which shows designs from the catwalk. Global events screened life, digitally enabled cultural space, choreographed audiovisual take-overs and celebration of British design and craftsmanship are the following experience. They are all about interactive, customization and personalization through massive screens, sound and visual effect which created an environment like walking into Burberry website. Even if people who never bought a single item from Burberry or gone to Burberry’s store, they will know what garment have been used for the trench coat or what is the background of Burberry through experiencing the multimedia content after they visit the store. The advantages of the digital in-store experience are everything being fast, flexible and dynamic in store also it is more convenient for customers to know all the details of the products. Furthermore, when people go into the store, they are not only doing shopping but also experiencing different sensory and entertaining devices or programs, which they can learn more and explore more in store. However, a coin has two sides, although some people may think the whole experience is more convenient for them and bring enjoyment to them when they visit the store, some may think the store is emotionless because they want to speak to the staff and get their advices rather than facing the screens. In the past, customer and staff are very interact, they chatted about their work, school and life, staff can know what fit the customer through chatting but nowadays people just doing online shopping at home, seeing reviews from the other customers because staff is not interact with them anymore. The suggestion is they can create a live messenger which customer can chat with the staff when they login to the Burberry app or through the devices in store. Also, they can adopt from Apple store, customers can ask for assistance from the iPad then they can send a staff to help. Digitalize is the trend of retailing but they should not too depend on the devices because communication is the most important thing of selling.
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APPENDIX B1 CRITICAL PATH
Week One – We met for the first time to decide which brief we were going to do, and then to divide secondary research up, to then gather and collate all our information, to gather enough information to influence our primary research and big idea. By the end of the week we had developed and brainstormed a rough big idea, which we used to help direct our primary research. Week Two After collating all our secondary research and gathering an in depth understanding of technology, smart phones and Liberty’s we decided to undertake our primary research. We began by contacting Liberty’s offices with questions about their consumers and the store itself – such as ‘what is the busiest department?’ and ‘Do you even see customers using your current loyalty scheme?’. We then decided to gather further research about the consumer by asking questionnaires on the streets of Nottingham. We went to competitors of Liberty’s and stores they had concessions in, we also analysed and took note of how many people we saw on their phones instore to help develop our big idea. We wanted a wider understanding of the uses of technology and shoppers, so decided to go online to reach a wider audience with a survey. With the information gathered from our primary research and secondary research we began to get a much better understanding of what Liberty’s consumers were looking for. Week Three Two of us travelled up to London, enabling us to get a really in depth and wide understanding of Liberty’s and its consumer. This really helped us in the development of our big idea, with the opportunity to talk directly to people who were shopping and working for Liberty’s we discovered our idea was too ambitious and advanced for the brand, this enabled us to back up all our ideas and finalise our big idea. We also used this opportunity to develop our understanding of the store layout and customer experience, and how it compares and differs from its competitors, helping us gather a much better understanding on the competitors. We gathered information on store experiences and where technology was heading by attending one off events and exhibitions, such as The Future Laboratory in Selfridges, the exhibition celebrating 150 years of John Lewis and Pradasphere in Harrods. All this information created a strong foundation for our big idea and helped develop our creative idea even further to create something unique and exciting. After the trip to London we decided it was time to write our first draft so divided sections up to be written by Monday. Unfortunately due to illness within the group we weren’t able to achieve a complete draft. Week Four This week consisted of redrafting and editing our writing, looking at design inspiration, collating and sharing information and references. We decided one of us should edit to make sure the report flowed with the same tone of voice after we all read through to get different opinions on writing style, information and grammar. Week Five We finalised our draft, after adding in bits of information to make sure we showed our insight and knowledge, created our appendix and collated all references and bibliography. We continued to look at design inspiration at the beginning of the week, sharing ideas on Pinterest. We then designed our report layout after brainstorming together our ideas, and created infographics to visually show some of the research we had done. After editing, redrafting and checking we came to print, deciding together on materials and style earlier in the week.
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APPENDIX B2
Facebook Group Used to Communicate and Share Work When Not Meeting
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APPENDIX B2 Group Blog- Used for Communication See Link- www.cpgrb.blogspot.com
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APPENDIX C1
PHYSICAL SALES ASSISTANT QUESTIONNAIRE
PHYSICAL CONSUMER QUESTIONNAIRE
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APPENDIX C2
PHYSICAL SALES ASSISTANT CONSENT FORM
PHYSICAL CONSUMER CONSENT FORM
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APPENDIX C3 ONLINE QUESTIONNAIRE https://roseemilyjohnson.typeform.com/to/vLdUDu
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APPENDIX D1 CONSUMER INFOGRAPHIC
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APPENDIX D2 SALES ADVISOR INFOGRAPHIC
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APPENDIX D3 ONLINE INFOGRAPHIC
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APPENDIX D2
Liberty is a historical department store, which located on Regent Street, the heart of London since 1875. Liberty’s significant black and white façade and British structure demonstrate their rich heritage. “I was determined not to follow existing fashion but to create new ones.” Arthur Liberty said, that is how he started his own business. At Liberty, there are four floors, each floor showcase different categories of products. Walking through the secret staircases, complexly elevators, wooden balconies and atriums with glass customers can find beautiful and luxurious goods including men’s, women’s fashion, accessories, fragrances, furniture, jewellry and stationery. Also there are many brands such as Comme des Garcons, Lanvin, Alexander McQueen, Paul Smith and their in-house brand Liberty London which designed their own fabric with special floral and graphic print. Arthur Lasenby Liberty established Liberty London in 1874, it started selling product from Japan and the East such as ornaments, art and fabric. With Arthur Liberty’s perceptive foresight and innovative mind guided him travelled around the world and found unique and delicate pieces and brought them to Liberty which made the Tudor building to stand out. The iconic Tutor Building, which designed by Edwin T. Hall and Edwin S. Hall. The three light wells were the mall focus of the magnificent building and in order to create the homely feel for the customers when they were walking around the store, also there were smaller rooms surrounded these wells which made them feel like in home and comfort. (Cherry & Pevsner, 1973) After the World War two, people increased their demand of luxury goods that influenced by the western and extravagance, providing wide-ranging and fashionable design to customers is not enough, therefore Liberty opened some regional shops in different cities around UK. In the 90’s they also sold Libertybranded product to other countries such as Japan. It is the start of developing their business to the global. There is a historical and luxurious department store similar with Liberty that located in London and founded in 1834, Harrods, which is under a corporation, including estates, bank, aviation and air. Harrods also have a rich historical background, which established in 1824 and began selling perfumes, tea, stationery and medicines. Nowadays, their department store is the biggest around Europe, including a 90,000 m2 selling space, providing 330 departments and different kind of services and products. Menswear, womenswear, jewellery, beauty product, electronics, stationery and housewares can be found in the shop. The majority of their customers are from middle class who got quite high pay and knowledgeable. Therefore, except from the products section, there is range shop services comprised 32 restaurants, pharmacy, salon and babers shop which can help their busy customers to save a lot time if they are looking for services. Also, they have a team of stuff who came from fifty different countries to server to non-English consumers because they have the highest proportion of tourist on peak days that would be their advantages compare with Liberty. Selfridges, which established in 1909 is a chain of advanced department stores in UK, including the second largest department store on Oxford Street in London and branches in Birmingham and Manchester. Different from Liberty and Harrods, Selfridge is not only focusing in London but also in major cities in UK. Harry Gordan Selfridge, the founded of Selfridges said, “The customer is always right.” It is the start of his extensive advertising till now. In the past, they usually hold exhibition like scientific and educational to attract people to come to their stop. According to International Business Times, London’s Selfridges won the world’s best department store. They beat Harrods and Macy’s and become the first store to win this admired award three times. In the criteria of the award, Selfridges did so well the customer service part that led them overcame their competitors. Making the shopping experience delightful and creating a relaxed shopping environment to customers are what Selfridges has achieved today but other stores failed. (Danyl, 2013) Alannah Weston, creative director of Selfridges said, the role of Selfridge is constantly surprise, amaze and amuse customers, putting library in store, making fashion films an having ballet performance in department which can create a distinctive and unique shopping journey to them.
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APPENDIX D3
Now when you see people who holding a yellow big bag, you must know he just shopped in Selfridges because of the catchy yellow logo. Compare with Liberty and Harrods, Selfridge has done more in advertising also in customer service that how they gain new customers and keep them coming back. A chain of 43 department stores over Britain, John Lewis is the part of John Lewis Partnership which including Waitrose and different kind of services. Rendering an article form the Retain Week, John Lewis own the most of the home market around UK, people like buying home ware in their store. Although people who usually buy home ware should be older, the fact is statistic shows that 39% of their customers are under 34 years old and only 28% of them are over 55 which means the largest group of their customers is quite young. Moreover, the survey also shows that TV advertisements really help them to push sales, their adverts targeted customer who has family, it might reflect why home ware is their customers favorite. Unlike the three department stores above, John Lewis is more mass-oriented and customers would go to buy home ware or electrical rather than buy a piece of fashion. Harvey Nichols is chain of international department store that opened in Hong Kong, Turkey and Dubai etc. They mainly sell fashion and beauty product, many international brand can be found in store. Their market is quite narrow because the products they sell are quite luxury and hi-end so the target consumers of them are high salary and fashionable. Although they have many of stores, each one of is very unique and well designed also they do very well in visual merchandising and after service that attack people to come to store and keep their customers loyalty.
Brians Original Draft
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