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Concept development and experimentationEFPI3001Samantha Hedger0801818
PROPOSALOver 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
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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Competitors
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
the brand. Both BHS and M&S are
classed as department stores, as
they provide a range of in-house
brands; however M&S has re-invented
itself with huge success over the
past decade. Something BHS has so
far failed to do.
Take their most recent advertising
campaigns ‘Only at your M&S’ this
slogan emphasises exclusivity,
something many middle class consumers
were quick to pick up on since the
recession hit in the second quarter
of 2008. As wallets tightened,
many people turned to affordable
luxury, rather than from the luxury
sector itself. For M&S to identify
these trends, their food sales in
particular has maintained a steady
growth over the past few years.
Since coming out of the recession,
consumers have kept brand loyal to
M&S after realising they can get
great quality for lower prices.
Next , a close competitor to
BHS, has the same audience and
demographics however it’s coherent
website, catalogue and stores are
key to their consumer. Their AW11
advertising campaign features 7
women synchronised dancing at
landmarks in London; the message:
‘NEXT has the ultimate fashion look
... fashion is all about great timing
– the science of getting what you
want when you want it. And NEXT’s
timing is impeccable. You can shop
online at next.co.uk right up until
9 at night – and still have all your
lovely things delivered to your door
the very next day!’
Next’s move to online was easier than
others, with Next directory their
mail order service being around
for over a decade consumers were
accustomed to shopping via images
rather than having the product
directly in front of them.
HAVEBHSLOSTTHEIRBRANDIMAGE?
Departmental stores such as John
Lewis and Debenhams are also key
competitors to BHS however they
offer concessions from 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
with. Although researching them was
important as they stock concessions
of Arcadia brands, such as Dorothy
Perkins, Topshop and Topman.
BHS also stock concessions from
their sister brands, however they
are not coherent with the rest
ot the store- they are laid out
differently and offer products that
appeal to a different consumer base
to the rest of the store.
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One thing to consider is that BHS
has a very mixed brand image, their
concessions are in-keeping with
the stand alone stores, both with
layout, and signage. However, they
offer a smaller collection, mainly
basic items such as t-shirts and
cardigans. This layout is noticable
when browsing BHS stores, the
concessions are neat, spacious
and easily navigated. The in-store
brands are cluttered and squeezed
into the space available.
ONLINEExploring different ways to spend
was essential to my research.
Online shopping has 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 identify the best deals
online. Online stores such as
Asos, Missguided 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 it due to sucCess and
demand. Stores such as Asos and
Oasis offer a 90 minuite click-to-
deliver 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, the integration
of user reviews and their
recommendations revolutionised the
world of shopping. Being able to
‘like’, comment and share has a
major effect on purchases.
US designer Rachel Roy launched
a pop-up store in facebook last
year, offering a limited 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.
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.
Source: Verdict 20100
200
400
600
800
1000
1200
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
1200
1000
800
600
400
200
0
Annu
al s
pend
per
hea
d (£
)
10
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 better stock avalability in-store
I’d like to see more personal service/advice from in-store staff
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
Base: 1,403 adults aged 15+ who have bought clothes in the last 12 months and use the internet
Source: Ipsos Mori/Mintel
0
5
10
15
20
25
30
35
40 0 10 20 30 40
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To firstly understand the high
street it was essential to explore
the previous examples of spending.
The British high street is in
decline, one in eight shops now
standing empty. Half of UK 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%.
ONLINE VS. HIGH STREET
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 each other
more.’
Despite the popularity of shopping
online, 53% of consumers prefer to
return or exchange items in store
that they have bought online.
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 and Fitch, Jack Wills,
Urban outfitters, and Superdry took
a completely different 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).
Visual Merchandising
Image taken from Debenhams Woking: Nov 2011
Visual Merchandising
Their Principles concession also took on this trend, with pictures displaying previous coverage and ornate glass vases. The displays were colour co-ordinated to the current stock on sale, which worked well, a small display (see centre of image) highlights background information of the brand.Image taken from Debenhams Woking: Nov 2011
RATIONALEIn 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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Convenience, 35%
Speed, 30%
Available Sizes, 35%
Customer Services, 15%
Recommendations, 15%
Quality, 50%
Price, 55%
Convenience, 57.90%
Speed, 36.80%
Available Sizes, 57.90% Customer Services, 0%
Recommendations, 15.80%
Quality, 10.50%
Price, 78.90%
When shopping Online and In-store what do you look for?
Inner ring - In-store
Outer Ring - Online
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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
OUTCOMETaking 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:
• Shopfront:howtoutiliseshopwindowsgivingexamples from competitor’s displays. At the moment BHS use mainly posters to advertise product, rather than the product itself.• Visualmerchandising:correctlydisplayingproductto compel consumer’s imagination and encouraging them to buy. Examples of department store displays will be used.• Storelayout:assessingthewayconsumersarenavigated through store, with the use of signs and displays.• Lightingandheating:21.7%ofpeopleinmy questionnaire said this was a significant factor to consider when shopping in store.• Productonoffer:discussingwhethertheyproduct display is maximising sales potential.• Promotions:promotionsandofferswithclear signs and displays, during different periods of the month, rather than too many at once. My findings from supermarkets will satisfy an example.• Pointofsale:analysingconsumerexperience,goodPOS is essential as it is the last memory a consumer has when leaving the store.• Customerservice:providingexcellentservice,after sales care and discretion when returning product is something many consumers are now ‘hot’ on.• Coherentwebsiteandstore:makingtransactionswith both the store and online should be seamless, with delivery, returns and enquiries.• Customerexperiences:Offeringbrafitting,personalshopper and ‘try before you buy’ on perishable goods such as sweets and alcohol.
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.
Image taken from BHS Camberly: Nov 2011
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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=CDB6pcVYWyxb9FoFXP4l%2fjuQDBDRorKvGZgiH8cxmkM%3d. Last Accessed 21st December 2011.
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Bibliography
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Peston, Robert. (2008). Sir Philip Green helped rescue Marks & Spencer. Available: http://www.telegraph.co.uk/finance.economics.2783461/Sir-Philip-Green-Helped-rescue-Marks-and-spencer.html. Last accessed 22nd October 2011.
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