Concept development and experimentation EFPI3001 Samantha Hedger 0801818
PROPOSAL Over the past 12 months BHS have closed the doors to ten of their stores, making way for the cheaper retail chain Primark. Speculation of a further 260 store closures across the Arcadia Group proves the ideal time to rethink and rework the existing stores.
I propose a shake up in the Visual Merchandising of BHS. From my research, experience and findings I shall conduct a marketing proposal to be presented to the company.
Images from BHS AW11 Press Campaign
Competitors Researching the UK and Worldwide retail market is essential when implementing changes to BHS. My research satisfies these criteria. By initially looking at direct competitors such as Marks and Spencer and Next I can locate the differentials within these high street brands. Exploring the rest of the retail sector and analysing the ‘state’ of the British high street as well as online-spending helped to identify consumer attitudes.
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Image from M&S AW11 Press Campaign
Marks and Spencer is BHS’s number one
competitor,
not
just
on
the
financial sector (M&S has a larger market share) but also on a personal level to BHS and Arcadia group CEO, Sir Philip Green. With two failed attempts to purchase M&S, Green has now made it his mission to better
Next
,
the brand. Both BHS and M&S are
BHS,
has
classed
as
demographics however it’s coherent
they provide a range of in-house
website, catalogue and stores are
brands; however M&S has re-invented
key to their consumer. Their AW11
itself with huge success over the
advertising
past decade. Something BHS has so
women
far failed to do.
landmarks in London; the message:
Take their most recent advertising
‘NEXT has the ultimate fashion look
campaigns ‘Only at your M&S’ this
... fashion is all about great timing
slogan
exclusivity,
– the science of getting what you
something many middle class consumers
want when you want it. And NEXT’s
were quick to pick up on since the
timing is impeccable. You can shop
recession hit in the second quarter
online at next.co.uk right up until
of
tightened,
9 at night – and still have all your
affordable
lovely things delivered to your door
many
as
department
emphasises
2008.
As
people
stores,
wallets
turned
to
luxury, rather than from the luxury
a
close the
competitor
same
campaign
synchronised
audience
to and
features dancing
7 at
the very next day!’
sector itself. For M&S to identify these trends, their food sales in
Next’s move to online was easier than
particular has maintained a steady
others, with Next directory their
growth
over
the
past
few
years.
order
service
being
around
Since coming out of the recession,
for over a decade consumers were
consumers have kept brand loyal to
accustomed to shopping via images
M&S after realising they can get
rather
great quality for lower prices.
directly in front of them.
than
having
the
product
HAVE BHS LOST THEIR BRAND IMAGE?
Departmental stores such as John Lewis and Debenhams are also key competitors offer
to
BHS
concessions
however from
they
outside
their in-store brands, which for my research places them in a different sector. In store beauty brands such as Chanel and Yves Saint Laurent as well as luxury designer clothing is
something
BHS
can’t
compete
One thing to consider is that BHS
with. Although researching them was
has a very mixed brand image, their
important as they stock concessions
concessions
of Arcadia brands, such as Dorothy
the stand alone stores, both with
Perkins, Topshop and Topman.
layout, and signage. However, they
are
in-keeping
with
offer a smaller collection, mainly BHS
also
from
basic items such as t-shirts and
their sister brands, however they
cardigans. This layout is noticable
are
when
not
stock
concessions
coherent
with
the
rest
browsing
BHS
stores,
the
ot the store- they are laid out
concessions
differently and offer products that
and easily navigated. The in-store
appeal to a different consumer base
brands are cluttered and squeezed
to the rest of the store.
into the space available.
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are
neat,
spacious
ONLINE Exploring different ways to spend was
essential
Online
to
shopping
my
has
research.
had
a
huge
impact on consumer spending habits, especially in the past 5-6 years with auction sites such as Amazon and
Ebay
becoming
increasingly
popular. Comparison websites offer a launch pad for consumers, being able
to
online.
identify Online
the
best
stores
Asos, Missguided
deals
such
as
and Net-a-porter
are hugely popular. E(lectronic)commerce is the most popular way to shop via the internet however m(obile)-commerce
via
your
smart
phone and f(acebook)-commerce via the social networking site are the most recent platforms for consumers to spend 24/7. For shops to increase sales and revenue they must be savvy and
incoroporate
these
platforms
into the brand. Next was the first retail store to identify the peak time for internet usage is around 7-8pm. Offering next day delivery when ordering by 9pm they have tapped into a huge market. This was originally trialed in the Christmas period 2010, however they extended demand.
it
due
Stores
to
such
sucCess as
Asos
and and
Oasis offer a 90 minuite click-todeliver service if you live within the M25.
M&S processed 13,000 orders in the first 6 months of launching their m-commerce site. This way of spending was slow to start however
recently
New Look, Mulberry, Zara and French Connection have launched shopping apps suitable for mobile. The newest way of spending is via facebook. With more than 600 million users, facebook is the worlds most poplar website. With
F-commerce,
of
user
the
reviews
integration and
their
recommendations revolutionised the world of shopping. Being able to ‘like’,
comment
and
share
has
a
major effect on purchases. US a
designer pop-up
year,
Rachel
store
offering
in a
Roy
launched
limited
last
edition
collaboration with artist Estelle. The collection sold out within 6 hours,
and
Roys
consumer
base
increased by 50% on the first day, 100% by the end of the campaign. The facebook page aquired 1 fan every 1.5 seconds.
1200 1200 Annual spend per head (£)
1000 1000 800 800 600 600 400 400 200 200 0
0
Source: Verdict 2010
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Above shows online shoppers’ annual spend per head. It is predicted to double in the next couple of years from that in 2005. Brands must tap into this market to maximise sales, potentially offering all 3 online platforms (e/m/f-commerce) as well as apps for tablets such as the IPad. Buying clothes online peaks among the 25-34’s. This market has a disposable income and are entering the family lifestyle. BHS can appeal to this market.
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Base: 1,403 adults aged 15+ who have bought clothes in the last 12 months and use the internet 40
30
35
30
20
25
20
10
15
10
5
0
0
40
I’d like to see a wide range of sizes and fittings in store
If shops don’t have the item I want in my size/colour I just go to a different store
I’d like to see more personal service/advice from instore staff
I’d like to see better stock avalability in-store
I don’t like the atmosphere in a lot of clothing shops
I like the ordering service for out-of-stock items that some stores offer
If shops don’t have the item I want in my size/colour I order from their website instead
It’s more relaxing to shop online than in-store
I like the privacy of shopping online and trying on at home
I shop online to find specific brands or items not available in stores near me
I shop online because I’m more likely to find my size
You get much better fashion advice and tips online than in-store Source: Ipsos Mori/Mintel
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ONLINE VS. HIGH STREET To
firstly
understand
the
high
street it was essential to explore the previous examples of spending. The
British
high
decline,
one
in
standing
empty.
street
eight Half
is
in
shops of
UK
now town
centres now compete with five or more
supermarkets
within
a
two
mile radius. Out of town shopping centres offering free parking and a shopping experience under one roof, are driving people out of town. Shops such as Woolworths, Waterstones and Zavvi have closed their doors, with HMV, Comet, Mothercare and Dixons dramatically downsizing, the future of the high street looks bleak.
Sales growth for high street stores between 2005 and 2010 was a measly 1.5% in comparison to out of town’s 11.5%.
The
growth
of
non-store
(online and mail order) rose by a phenomenal 71.5%.
But
is
all
lost?
M&S
property
developer Clem Constantine quotes
‘the high street is and will continue to be important in a multichannel age. Eventually this internet and the high street will...start to merge, and
complement
more.’ Despite the popularity of shopping online, 53% of consumers prefer to return or exchange items in store that they have bought online.
each
other
Visual Merchandising Taking the statistics into account I
decided to explore ‘brick and mortar’. One
trend
in
several
high
fashion
shops was apparent: the gallery. Shops displayed products as if to look but not touch, focusing mainly on customer service, for you to be assisted with your purchases. Abercrombie Urban a
and
Fitch,
Jack
and
Superdry
outfitters,
completely
different
Wills, took
approach:
heritage. Shops had dark mood lighting, with certain products and displays lit up more than others. Memorabilia and props were incorporated into the shop layout, this included sewing machines, stag heads, old fashioned pictures and areas to sit and lounge. These two store designs differentiated completely, however they work well with the
product
being
sold.
Department
stores John Lewis and Debenhams swayed towards the heritage theme. Certain
concessions
had
fantastic
displays; this shoe boudoir in Debenhams, Woking is a good example (right). It felt luxurious, the lighting used highlighted certain products and displays within the concession. It was clean and easy to navigate, the colour theme was gold, black and white (minus the green signs, it was a promotional day).
Image taken from Debenhams Woking: Nov 2011
Image taken from Debenhams Woking: Nov 2011
Their Principles concession also took on this trend, with pictures displaying previous coverage and ornate glass vases. The displays were colour coordinated to the current stock on sale, which worked well, a small display (see centre of image) highlights background information of the brand.
RATIONALE In a questionnaire I conducted, 39.1% of people said they felt BHS stores were outdated, only 17.4% felt it was a good/average store.
When asked would you consider shopping in BHS if they
offered ranges similar to sister brands Topshop and Dorothy Perkins only 4.3% said no. Other answers ranged from yes, if the price was right, if the brand updated their image and would most definitely consider it.
On a personal level, having worked as a retail assistant at the Horsham branch of BHS, and having had the opportunity to work at Arcadia Headquarters (BHS press room, BHS AW11 press show and a BHS wedding event) has benefited this project proposal substantially. Having this prospective on the business, rather than evaluating it just from the outside will make it more viable and likely to be seen.
Having said that evaluating it as a consumer was essential to experimentation. Visits to several BHS branches were essential.
Opposite are the results to a question taken from my questionnaire.
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When shopping Online and In-store what do you look for? Inner ring - In-store Outer Ring - Online
Convenience, 57.90% Convenience, 35% Price, 78.90%
Price, 55%
Speed, 30%
Speed, 36.80% Quality, 50%
Available Sizes, 35%
Quality, 10.50%
Customer Services, 15% Recommendations, 15.80%
Recommendations, 15%
Available Sizes, 57.90% Customer Services, 0%
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This is an image from BHS Brighton the last week of November 2011. The deals on display are fantastic, however it is too cramped and overpowering. Online editor for What?! Magazine, David Mahoney quotes ‘the futures bright...the futures not orange (red, pink or purple)’.
Image taken from BHS Brighton: Nov 2011
What’s shocking is these AW11 press images (below) have a completely different outlook. The crisp simplicity of them is hard to relate to the in-store merchandising.
Images from BHS AW11 Press Campaign
OUTCOME Taking into account the factors discussed previously, I will create a marketing pitch to be shown to the VM at BHS. Looking at the in-store experience, taking examples from competitors, online experiences, in-store findings, questionnaires and focus groups. It will be a sales pitch, tactfully written to highlight points that need addressing rather than a marketing report. It will clearly present a different concept on each page. It will include the following: •
Shop front: how to utilise shop windows giving examples from competitor’s displays. At the moment BHS use mainly posters to advertise product, rather than the product
itself. • Visual merchandising: correctly displaying product to compel consumer’s imagination and encouraging them to buy. Examples of department store displays will be used. • Store layout: assessing the way consumers are navigated through store, with the use of signs and displays. • Lighting and heating: 21.7% of people in my questionnaire said this was a significant factor to consider when shopping in store. • Product on offer: discussing whether they product display is maximising sales potential. • Promotions: promotions and offers with clear signs and displays, during different periods of the month, rather than too many at once. My findings from supermarkets will satisfy an example. • Point of sale: analysing consumer experience, good POS is essential as it is the last memory a consumer has when leaving the store. • Customer service: providing excellent service, after sales care and discretion when returning product is something many consumers are now ‘hot’ on. • Coherent website and store: making transactions with both the store and online should be seamless, with delivery, returns and enquiries. • Customer experiences: Offering bra fitting, personal shopper and ‘try before you buy’ on perishable goods such as sweets and alcohol.
Image taken from BHS Camberly: Nov 2011
Essentially by creating this pitch I hope to present and work with BHS on a live project. However, if I am unable to do this I shall create a mock project. This will include a campaign using findings from my pitch. In this will be: press releases, my vision for a shop (using photography and illustration), a mock floor plan of an existing BHS, promotional advertisement via social media platforms, promotion via in store discounts, store advertisement near location, regional press coverage.
Bibliography Batstone-Carr, Jeremy. (2010). The recession. Available: https://info.moneyweek.com/article.php?bbcam=msneu&bbki d=recession&x=&jtid=13031337&UID=&p_id=10796&jchk=1&no log=1&jdid=mn115013&utm_medium=cpc&utm_source=msn&utm_ campaign=UKMSN-ECONM-SPART-Economy&ut. Last accessed 20th October 2011. BBC. (2011). Arcadia set to close up to 260 stores as profits fall. Available: http://www.bbc.co.uk/news/ business-15867924. Last accessed 29th November 2011. Brummer, Alex. (2011). As household-name stores fall prey to online shopping boom, we ask: will the internet monster eat the high street?. Available: http://www.dailymail. co.uk/debate/articla-1389343/as-household-sto...lineshopping-boom-ask-will-internet-monster-eat-highstreet. html. Last Accessed 22nd October 2011 Hack, Claire. (2010). BHS to close down in Primark Takeover. Available: http://www.guardian-series.co.uk/ news/rbnews/4857248.ILFORD_Bhs_to_close_down_in_Primark_ takover/. Last accessed 22nd October 2011. Hedger, Samantha. (2011). High street spending. Available: http://www.surveymonkey.com/MySurvey_Responses.aspx?sm=CDB6 pcVYWyxb9FoFXP4l%2fjuQDBDRorKvGZgiH8cxmkM%3d. Last Accessed 21st December 2011. Mintel. (2009). Top 250 European Retailers. Available: http://www.mintel.com/docs/retailers_ranked.htm. Last accessed 5th November 2011. Mintel. (2010). E commerce, UK- Feb 2010. Available: http://www.mintel.com. Last accessed 25th October 2011.
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Mintel. (2010). Executive summary – UK - October 2010. Available: http://www.mintel.com. Last accessed 25th October 2011. Next. (2011). Cool moves for the small screen. Available: http://press.next.co.uk/media/news-archive/2011/ tvadvertoct11.aspx. Last accessed 25th November 2011. Peston, Robert. (2008). Sir Philip Green helped rescue Marks & Spencer. Available: http://www.telegraph.co.uk/ finance.economics.2783461/Sir-Philip-Green-Helped-rescueMarks-and-spencer.html. Last accessed 22nd October 2011. Sweney, Mark. (2006). A successful ad campaign has revived the fortunes of Marks & Spencer. Available: http://www. guardian.co.uk/media/2006/nov/06/retail.monday. Last accessed 25th October 2011. WGSN. (2011). Customer service: The Key differentiation. Available: http://www.wgsn.com/content/report/retail_and_ VM/Customer_customer_service_the_key_differentiation. Last accessed 25th October 2011.
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