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5.3 Place (Distribution
PLACE (DISTRIBUTION)
Considering the market opportunities (Section 3.6) and the strategic objectives (section 4.2) this report recommends that Stella should enter the NZ market through a flagship store with a high level of technological integration (Section 5.4) The store will explore the concept of experiential retail (Upside Down retail) to meet the shift in consumer needs since the acceleration of phy-gital stores following Covid (McKinsey, 2020). The store will encompass the brand’s identity through the design, location and digital elements (Chen, 2020)
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The location of the freestanding flagship store will be in Auckland which will efficiently capture demand in the new market (Section 5.3.2) (Figure 12). Auckland has become the largest contributor to NZ’s GDP and highly attractive retail destination for luxury (Pwc, 2020). Opening a freestanding store near NZ’s largest shopping mall (Sylvia Park, Auckland) will allow Stella to capitalize on the district’s reputation as an iconic shopping destination (Wilkinson, 2020). A longterm strategy, once the store thrives in Auckland may be to expand into other cities, such as the capital, Wellington. The flagship store will effectively reflect the world of Stella with a green and modern atmosphere and will strategically complement the brand’s portfolio of stores worldwide.
Figure 12:: New Zealand Map (Google Images, 2021)
FLAGSHIP STORE OPENING
The location of a flagship store within iconic cities is the most powerful MEM, adding value to the brand through enhancing their luxury status (Moore & Doherty, 2010). Stella will have full control over activities through a flagship store, allowing Stella to create an experiential showroom (Moore et al, 2010). Marketing activities through social media and the launch of the e-commerce website will support with building awareness and enhance the effect of the flagship store opening.
GALWAY STREET ATTRACTIONS:
• Recent $350 million development, central Galway Street in Britomart; transformed into a pedestrian friendly space; attractive and accessible for the growing population in central Auckland. Since being revamped, it has become a destination spot for Kiwis to visit (Britomart, 2020) • Greener space in-line with Stella McCartney’s brand articulation
Boutiques to rent that are the ideal creative space for sculptural designs, neutral tones and a green environment • Close proximity to Queens Wharf Port: tourist trap • Hub of high-end designer fashion stores
PLACE (STORE)
The decision to adapt or standardize place is dependent on factors including culture, nature of the new market and customer characteristics (Akgun, 2012). The physical presence of the store will be standardized with a free-standing flagship store and parallel design concepts to stores worldwide to maintain a consistent brand image. The online presence will be standardized to ensure global communication is fluid and consistent across their e-commerce site (Keegan & Green, 1999).
The design of the store begins with outlining its purpose which aids the opportunity to develop relationships with customers (Jackson and Shaw, 2009). Stella should aim to create an experiential and holistic experience through the enhancement of in-store technologies (Roggeveen, Nordfalt and Grewal, 2016) (Pine and Gilmore, 1999). Taking inspiration from their London store, 23 Old Bond Street, the NZ store will be a brandscape which integrates both physical and digital stimuli. The SOR framework (Section 5.3.5) and section 5.3.4 summarizes the design of the store (environmental and social stimuli) that encourage consumer response in store (Mehrabian and Russel, 1974). The investment to creating a digital and unique store experience in turn ‘reduces consumer’s price sensitivity’ and increases demand of luxury goods (Roggeveen, 2015). “43% of shoppers more likely to spend more with retailers offering a meaningful in-store shopping experience” (Pine and Gilmore, 1999)
PLACE (ASETHETIC)
STIMULI (SOR FRAMWORK: SECTION 5.3.5)
Architectural Design Standardized architectural atmosphere constructed from reclaimed materials including timber flooring and brass staircases. Contemporary interior dressed with recycled pine, sourced from sustainable forests in the Southland region. Store will exhibit Maori cultural artefacts and local art to embrace the NZ culture
Multi-sensory experience Bringing personal emotion into the space through sound, smell and light. A congruent atmosphere achieves higher satisfaction levels and optimal stimulation (Spence, 2014). Parsons (2011) found that interactions between sensory stimuli in NZ retail environments have a significant effect on their behaviour in-store (Parsons, 2012). Auditory atmospherics: Standardized Affects consumer's level of stimulation, mood and emotions (Konecni, 2008), which manipulates their response. Slow music tempo of abstract sounds to elevate the senses creates a relaxing environment which in turn should lead to increase in sales as shoppers browse for longer (Spence 2014) (Krishna, 2012).
Visual atmospherics: Standardized Natural lighting through large glass windows, with artificial lights enhances the architecture and product features (McCartney, 2020). Conveys a sense of the outdoors through natural sunlight and tonal, woodland colours (Spence, 2014).
Olfactory stimulation: Standardized Scent is influential in luxury retailing, which should be congruent with the store aesthetic and brand identity (Bosmans, 2006, Parsons, 2009). Immerse the consumer in their signature ‘STELLA’ fragrance that complements the clean air experience, a floral scent with sultry amber notes (McCartney, 2020)
STIMULUS
INPUTS
Retail environmental characteristics - Ambience - White and green colour scheme - Clean air system filtering 95% of Multi-sensory experience - Digital screens displaying fashion film (section ___) - AR mobile app scanning displays
pollutants and harmful gases Sustainability and nature - Materials: reclaimed & re-used including locally sourced - BNATURAL mannequins (bioplastic) - Recycled wood shelving - Green plants and trees capturing the outdoors Symbolic environment - Communal space for consumers to interact with the brand – Increased customer loyalty (Mehrabian and
Russel, 1974) - Place as a brandscape that represents online presents and brand itself
ORGANISM
COGNITIVE/EMOTION OF CONSUMER
RESPONSE
OUTPUTS
Positive emotional response: - Pleasure - Desirability - Excitement - Exclusivity - Social buying
Consumer behavioral response - Impulse purchase (objective 1) - Strengthen long term customer relationships (objective 3) - Word-of-Mouth building brand awareness - Share content on social media (UGC)
Figure 18: Stimulus-Organism-Response Framework: Store experience (Authors own, 2021) (Mehrabian and Russel, 1974)
