Retail Insights™

Monday, June 29, 2009

Retail Store Management

Tutorial 8

Question 1:
· Who is responsible for employee scheduling?
There is fixed pattern for all Robinsons staffs which include, senior supervisors, assistant supervisors, senior sales associate and sales associates.

The pattern of the schedule is firstly designed and prepared by the Human Resource Management and the timetable is given to the staffs when they first joined Robinsons. After that, the Sales Manager and the Supervisors have the right the edit and change the schedules according to special reasons and activities of Robinsons conducted internally such as extra training sessions. The Sales manager of that department has to inform of any changes. Other reasons for changing include taking leaves and adjusting of schedule to go on a long holiday, etc. For each department in Robinsons, the schedule of each staffs is arranged together such as there will be available and ample staffs or personnel throughout the day, especially during weekends. Sometimes, the Sales Manager of the department will re-arrange the timetable for special reasons and inform his or her staffs.

· How far in advance is the schedule made?
The schedule is already fixed according to the pattern above. Any changes have to be done at least 3 days and the sales manager must be informed.

· How are breaks and lunch periods planned?
Break times for staffs having for their different schedules

· How are overtime hours determined?
Overtimes are determined immediately on that day and the manager or supervisor. It is recorded in a file for reviewing purposes weekly. The hours are clocked and given back where appropriate or upon the staff request to the sales manager.

· On what is the total number of budgeted employee hours for each department based?
The budgeted employee hours are based weekly or as required, sometimes as frequently as everyday especially for part-timers. Sometimes when the manger foresees that there would not be must sales for the day, he/she would send the part-timers off early by 2-3 hours hence helping the company in managing costs.
Also, full-timers especially if they are salesperson who get commission are forced to take no pay leave at least once a month when sales fall low and not much labour is required. This way, they plan out the number of hours that the available employees are supposed to work, also helping to cut down on labour costs.

· How is flexibility introduced into the schedule?
Flexibility has always been implemented and is part of the requirements of the employees to address and adapt to changes implemented.

· How are special requests for days off handled?
Special requests at the eleventh hour will not be entertained except for really valid reasons or emergencies. Due to the limited labour, it is difficult to cover up for a missing staff. However, if a staff happens to take leave, the rest are required to adapt and help to cover for the missing staff. For normal leave requests for full timers, it depends on the numbers of days of leave they can take. However they have to consult the manager before they decide to apply for leave.

· How are peak periods (hourly, days, or seasons) planned for?
Peak periods are usually planned monthly. Sales forecast is predicted by the marketing department and hence a monthly sales target is issued for each department of the store.

· What happens when an employee calls in sick at the last minute?
If an employee is called sick at the last minute, they are in fact encouraged to return home to take rest and seek medical attention. As Robinsons is a retail business, they prioritize customers as first and would not want to bring any harm to their customers by making an unwell staff to work.

E-learning:
Research Topic: Professional Skills Programme in Singapore
This programme is brought forward by Singapore workforce development agency. In another words, it is a programme by our government. This programme is subsidised by the government.

Professional Skills Programme
The Professional Skills Programme brings together the entire range of skills upgrading and job assistance initiatives under the programme. It targets the Professionals, Managers, Executives, Technicians (PMETs).

There are two main functions under this government programme. Skills conversion and skills upgrading.

Skills Conversion
Conversion Programmes enables PMETs to switch to a range of new occupations such as registered nurses, occupational therapists, preschool teachers, property officers, media and digital media professionals, workplace safety and health managers. This includes the Professional Conversion Programmes.

There are situations whereby an individual could not find a job under the set of skills he have. This may be due to reasons such as recession, an industry that has limited spaces for employment or other reasons. This workforce should not be neglected. Therefore the workforce agency came out with such a programme to re-equip this workforce with other set of skills such that they can go into the other industry to work. The ultimate aim of this skill conversion programme is to effectively distribute Singapore workforce to the available spaces of employment in Singapore.

Skills Upgrading
Helps PMETs to improve their skills and employability within the same industry. These include industry-specialised training.

Programmes that equip skills to an individual can be skill upgrading as well. Singapore workforce agency realise the importance of equipping the workforce with the newest set of skills such that the workforce remains competitive.

What has it got to do with the retail industry in Singapore?
This programme is supposed to benefit every industry in Singapore. However, this programme is tied closely to the retail industry for now and the next few years. This is because Singapore government is focusing Singapore finance on the tourism industry. It wants its tourism industry to be the biggest diversement against its port tradings, such that the financial state of Singapore in the future is more stable.

Evidence:
1) Biggest investment of Singapore in the recent years – The integrated resorts
2) Building a casino in IR helps in the boosting the tourism industry but goes against the culture of Singapore government.
3)The Singapore Tourism Board has set targets to achieve 17 million visitor arrivals and $30 billion tourism receipts by 2015

While it focuses in tourism industry, the retail industry flourishes. Here, I will like to highlight a point. The retail industry and the tourism industry is inseperable and co-exists. What happens on tourism industry will affect the retail industry, vice versa.

The tourism investments such as the the integrated resorts will find a surge in its manpower needs. The majority of these manpower demand arises from the retail industry. However, there will not be enough available workforce in the tourism/retailing industry to meet this demand. This is where the psp programme comes into picture. WDA aims to train 36,000 non-tourism workers to take on various jobs. This is the application of skills conversion under psp. By equipping available labour force with relevant skills such that they fit into the relevant industry. The retail industry will be greatly benefited by this programme, as there will be enough workforce to meet the demand.

A good example of how retail industry will be benefited by this programme is the casino. As such a retail format is not seen in Singapore previously, we lack expertise in this field. There is a lack of such a workforce, and therefore needs to be created. Psp skill conversion will be the function in creating such a workforce and then distributing it into the retail industry. In this case the retail industry being the casino.

As Singapore does not earn a good name in servicing customers, the government sees a need in improving the customer service level. This is an important factor in contributing to the tourism industry. This is where the skills upgrading function of psp comes into picture. By upgrading the customer service level in the retail industry, such that it flourishes the tourism industry.

Evidence: WDA is developing the Certified Service Professional programme (CSP), based on its Service Excellence Workforce Skills Qualification (WSQ) framework.

♥8:53 AM

What is Customer Service?
Customer service refers to the ability of knowledgeable, capable, and enthusiatic employees to deliver products and services to their internal and external customers in a manner that satisfies identified and unidentified needs and ultimately results in positive word-of-mouth publicity and return business.

What are the customer service approaches adopted by Robinsons?
The company total approach to developing staff for service excellence is innovative. It recognises that service excellence is not just about training. It has a comprehensive approach that comprises:

the establishment of clear service performance standards for staff
a well-integrated and structured programme for developing people to provide excellent service
monitoring service quality through fortnightly service audits
systematic service briefings at the start of the day, five times a week covering product knowledge, customer service and sales promotion

A set of clear performance standards has been established for all service staff under the Service Standards Index. It comprises five basic non-negotiables for customer service. These are: greeting the customer, up-selling, promoting the use of the Robinsons card, encouraging customers to complete the feedback form and thanking the customer. These basics are communicated to staff to ensure that they are clear about what is expected of them. The Index provides the basis for service excellence training as well as measuring the performance of both the individual and the organisation. It is used to conduct service audits and derive a fortnightly score for tracking service quality.

The Robinsons Group believes it is important to develop all staff for service excellence. Hence, the service excellence mindset is deployed to all levels of staff in all functions. It involves both new and existing staff, sales and non-sales functions and managers. It is even extended to sales promoters who are not in the organisation's payroll.

The impact of Robinsons people development is significant. It has contributed to a 9% increase in total sales turnover, a 2% increase in sales turnover per staff, as well as a 20% increase in sales generated from new product lines. There was also a three-fold increase in the number of customer compliments received between 2000 and 2001.

♥7:06 AM

Tuesday, June 16, 2009

Merchandise Presentation and Store Design

Race Track Layout

The Race Track Layout is typically adopted by departmental stores. Hence, naturally, this layout style is adopted by Robinsons in every of its outlets. In the outlet at Raffles City, every floor of Robinsons is looped with a major aisle that has access to the different departments as well as the store’s multiple entrances. This allows customers to patron around the store at each level in different ways, approaching different varieties of merchandises each time. Besides this, the aisles can also provide different site lines and encourage further exploration and impulse buying.

In Robinsons, the store ambience and environment are meticulously designed and planned to suits the customers’ needs and mobility comfort. Each aisle is wide enough for at least 2 baby prams to pass through. The customer service areas, cashiers and exits are at the sight of the customers’ ease. Also, each and every department is clear and well organized for the customers to locate and buy the products they want. Signs and directions are placed clearly to guide the customers around where required.

Merchandise Presentation

In Robinsons, the Management takes the displays of merchandises very seriously. They want to ensure that their merchandise, be it aged or new, are able to sell well and meet the needs of the customers. The customers have to be able to get a clear view of the variety and assortments in each product section and are able to reach them at their own convenience.

Colours

This is the towel section in one of the departments in Robinsons. In this picture, one can see that the towels are neatly arranged on the shelves and tables, using the space provided wisely. The towels are displayed in a clear manner which the customers can “understand” easily at one easy look. Secondly, the assortments are ample and the towels of each color can be easily reached. Lastly, notice that the colors are arranged from light to dark color (left to right) on the shelves, a way to present the merchandise attractively.

Glass Shelves

Another way Robinsons used to present their merchandise is by glass boxes of shelves for the customer to admire and buy. In this case, the handbags are displayed in a unique manner, sitting in the clearly lighted glass elegantly.

Displaying Merchandising Using Lifestyle Concepts

In every department, Robinsons has its own way of presenting their merchandise when the customers enter the area. The picture depicting the 2 mannequins are donned with bright colors and sporty apparels and a fashionable bag, illustrating a hip and modern lifestyle. The second picture with the bed shows a typical classy image of a bedroom filled with elegance, neatness and style. The beds are fully equipped with bed linens and the temporary wall behind it adds to the overall feel of modern lifestyle by Hotel Collection. This creative way of displaying allows the customers to better relate to what the merchandise or products can offer and adds to the atmosphere of the store.

♥7:45 AM

Monday, June 8, 2009

The state of human resource in Singapore

-Singapore has a small and limited work force -Some sectors with human resource shortage
- Human resources in Singapore are expensive
- Professional and Skilled
- Reliable –not subjected to riots and strikes
-Lack of creativity and passion
- Affected deeply by Confucianism.
-Multi-Racial harmony

Unique human resource practices

No.1 - Hiring foreign workers to a very large extent. (In sense of a country’s action)

Singapore statistic in hiring foreign workers, is way higher than any of the other country. This makes a unique way of human resource practice.

The ratio of job vacancies to unemployed persons in Singapore is now 0.8. Due to the limited size of its workforce and low unemployment rates, most industries have reported difficulty in recent years in recruiting workers, particularly in the lower level service sector and among production and semi-skilled workers in small-to-medium-sized companies. The construction sector has typically felt this lack of workers the most.

As we need labour force to sastify the need of human resource in Singapore, our government took in a lot of foreign workers. Eventually, leading Singapore economy to a greater heights.

No.2 - Hiring Foreign Talents (In sense of a company’s action)
Normally, in other countries, their local talents are given priority to available jobs in their country. However, this is not the scenario in Singapore.
The uncommon thing here is that companies in Singapore hire foreign talents in place of its local talents. This is another unique practice of human resource in Singapore. As human resources in Singapore is expensive, companies choose foreign talents over local talents to lower cost of production. Furthermore, these foreign talents in terms of quality, may not lose to local talents. This is also partly because of the incapability of our government in terms of safeguarding the job position for Singaporeans.

It is not until recent years, in the face of growing public sentiment against opening the country's doors any wider, government officials are thus reluctant to admit or recruit more foreign personnel

No.3 - using contract as a mean to bound its workers.
The labour turnover rate in Singapore is considered quite high. Therefore, as a mean to bound this workers to their jobs, it is a common human resource practice to form contracts with the workers.

No.4 - Multi -Racial working in an environment.
As there are several races that live in harmony with each other in Singapore, multi racial working in a same working environment is commonly seen. However this is not the common case worldwide. Having a few race of people working under the same environment is actually a unique human resource practice in Singapore.

No.5 - Business Culture
As Singapore is 76% dominated by Chinese descendents, the business culture here are affected by Confucianism. Therefore, it is a common human resource practice for Chinese dominated countries to hire people that follows obey and follow the system of Confucianism.

♥5:15 PM

Sunday, June 7, 2009

Do you know?

Zara's Target Market

Zara offers clothes, footwear and accessories to women(60%) and men (25%), as well as clothing and accessories for children (15%). People at Zara do not define their target by segmenting ages and lifestyles as traditional retailers do. Zara's global target market is a young, educated one that likes fashion and is sensitive to fashion, but is price-conscious.

♥8:52 AM

Monday, June 1, 2009

High/Low Pricing Strategy (Hi-Lo Pricing)

Refers to regular prices of the products are set higher than Everyday Low Price (EDLP) competitors, however, merchandises are also frequently on sales at lower prices. To attract customers, Robinsons strive to have wider or more targeted assortments, exclusive products, more convenient locations and better service.

Benefits of Hi–Lo Pricing:

1) Price discrimination to achieve higher profits

Price discrimination is a practice that Robinsons use to charge different prices for the same items to different customers. They use loyalty programs like membership and OCBC Robinsons VISA Platinum Card to give more privileges to their loyal customers when they shop in Robinsons. These allow their customers to enjoy discounts and rebates when they shop at Robinsons, thus creating higher possibility of repeat purchases and help increase profits.

2) More excitement

Besides giving privileges to their loyal customers, Robinsons also rewards their first 100 supportive customers with an attractive exclusive set of facial products. This would enhance their customers shopping experience by creating more excitement when they make their purchase in Robinsons.

3) Build short-term sales and generates traffic

With a big discount up to 70% storewide, this would definitely increase in the customers traffic flow and help boost the sales of slow-moving products.

Comparative Price Advertising

Is comparing price of merchandise offered for sale with a higher “regular” price.

Robinsons always tend to advertise and lure its customers specially its members by advertising their discounts like “Up to 70% off” but they have always been honoring that unless they really ran out of stock.

Bait and Switch

Lure customers into store by advertising a product at a lower than usual price (the bait) and then induces customer to switch to higher priced model (the switch).

Odd Pricing/ Psychological Pricing
A price that ends in an odd number just under a round number to make it seem or look cheaper, e.g. 9.90, 19.90, 29.90

Robinsons has been using this strategy especially for its shoes and bags section to make it seem cheaper and this can help customers to consider maybe getting another pair or 2.

♥7:26 AM

What Is A Price?

Price is the sum of all the values that consumers exchange for the benefits of having or using the product or service.

Internal Factors Affecting Pricing Decisions

(Marketing Objective)

1) Survival
2) Current Profit Maximisation
3) Market Share Leadership
4) Product Quality Leadership

Marketing Mix Strategy

Price Decisions must be coordinated with product design, distribution, and promotion decisions to form a consistent and effective marketing program.

Organizational Considerations

Must decide who within the organization should set prices.

This will vary depending on the size and type of company.

External Factors Affecting Pricing Decisions and the Nature of Market and Demand

1) Costs set the lower limit of prices while the market and demand set the upper limit.

2) Competition
3) Use as a benchmark to set own prices
4) Set prices competitively Other environmental factors
5) Recessions or boom affect customers’ ability to spend
6) Diseases/drought/flood affect supply of livestock and fruits/vegetables
7) Government
8) Social concerns

1) Psychological Pricing

Considers the psychology of prices and not simply the economics.
Consumers usually perceive higher-priced products as having higher quality.
Consumers use price less when they can judge quality of a product.

2) Promotional Pricing

Temporarily pricing products below list price and sometimes even below cost to create buying excitement and urgency.
Approaches: –

--> Special-Event Pricing: Sellers will also use special-event pricing in certain seasons to draw more customers.

-–> Cash Rebates: Manufacturers sometimes offer cash rebates to consumers who buy a product from dealers within a specified time; the manufacturer sends the rebate directly to the customer

-– >Low-Interest Financing: Some manufacturers offer low-interest financing, longer warranties, or free maintenance to reduce the customer’s “price.”

-– >Longer Warranties

-–> Free Maintenance

-–> Discounts: Seller may simply offer discounts from normal prices to increase sales and reduce inventories

-– >Loss Leaders: With promotional pricing, companies will temporarily price their products below list price and sometimes even below cost to create buying excitement and urgency.

♥6:18 AM